PUBLIC PRIVATE SYNERGY FOR BETTER DEVELOPMENTpppindonesia.co.id/Content/Presentation PPP Indonesia...
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PUBLIC PRIVATE SYNERGY FOR BETTER DEVELOPMENT
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ENSURING DEVELOPMENT TO BE EMPOWERED AS THEY SHOULD BE
• Established in February 2004• In anticipation of the issuance of Presidential Regulation No 67 of
2005, which was later revised through Presidential RegulationNo. 13 of 2010, on the development of infrastructure throughPublic-Private Partnerships (PPP)
• Offering consultancy and training services in PPP, reform in theregulation and management of utilities, and to supportinfrastructure development in the economic development ofIndonesia; include consultancy services/transaction advisory tothe Government of Indonesia as well as Regional/LocalGovernments and enterprises in this vast and complex economy
• Extensive experience in advising central Government and LocalGovernments for the development of infrastructure projectsunder donor funding from the World Bank, ADB, JICA, IDB,AUSAID, JBIC
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BRIDGING YOU AND THE DEAL FLOW• Structuring Sustainable Arrangements• Assess Financing of projects• Providing overall transaction leadership and acting as
the single point of responsibility to the client – frombusiness case development to transactionsmanagement through to financial closure
• Introducing the latest and the most sustainableinternational best practices in implementing PPPproject transactions
• Promoting potential deal flow via internationalmarket sounding exercises
• Enhancing investor confidence through a wellmanaged, timely and transparent procurementprocess
• Transferring transactions management and PPPstructuring expertise to client staff
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BRIDGING YOU AND THE DEAL FLOW• Bid evaluation, award and negotiations
• Contract and performance monitoring, contract complianceand dispute resolution
• Designing regulatory institutions and their financialinstruments
• Creating regulatory rules, processes and procedures
• Public awareness and customer relations programs
• Tariff structuring and subsidy analysis design/options
• Rate case application preparations and strategic reviews
• Competition policy and regulatory reform in key sectors
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THE RIGHT KIND OF EXPERIENCE FOR THE RIGHT KIND OF JOB• Example of Training in Public-Private Partnerships (PPP):
- Pro-Poor Municipal PPP- Public Policy in DKI Jakarta Province- Structuring, Evaluating and Negotiating Independent
Power Producer (IPPs) Transactions- Training of Trainers (TOT) Course on Infrastructure
Development Through Public-Private Partnership (PPP) invarious locations
- Regional Development Mechanism & Public-PrivatePartnerships in Infrastructure Development
- Managing Urban Health Care Service through Public-Private Partnerships (PPP)
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THE RIGHT KIND OF EXPERIENCE FOR THE RIGHT KIND OF JOBExample of Consultancy projects• Master Plan for the Development of Railways in Central Java
• Development of a Public-Private Partnerships Central Unit(P3CU) and its Network Technical Assistance in Indonesia
• Consulting Services for Private Sector Participation
• Private Sector Project Development Facility (PSPDF)Guidelines/manual
• Development of the Media Centre for Regional Representatives
• Regional Development Facility (RDF), and Capacity BuildingPrograms
• Geographical Information System project
• Pre-Feasibility Studies and Feasibility Studies (FS)
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CHAIRMANHappy Bone Zulkarnain
PRESIDENT DIRECTORWindhu Hidranto
EXECUTIVE DIRECTORRidwan Ramli
OPERATIONAL MANAGER
POOL OF PROFESSIONALS FINANCIAL MANAGER MARKETING MANAGER
SECURITY DIVISION PUBLIC POLICY DIVISION
BUSINESS
DIVISION
BUSINESS DEVELOPMENT
DIVISION
TRAINING DIVISION CONSULTING DIVISION
TRADING DIVISION
PLASTICS DIVISIONCOAL & IRON ORE
DIVISION
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DR. H. HAPPY BONE ZULKARNAIN, MS
Teaching/Lecturing Experience:• Lecturer in Socio-Political Sciences, Parahyangan University, and STIA-LAN,
Bandung• Lecturer in Socio-Political Sciences in Seskoad, and IIP, Jakarta
Government Institutions experience:• Level 1 DPRD (Regional Parliament) member for West Java Province• A member of MPR/DPR RI(National Parliament), Jakarta
Memberships/Title in DPR• First Commission on Defence, Security, and foreign affairs• Golkar Fraction leadership
Education:• Bachelor’s Degree from UNPAR Bandung (1981)• Master’s Degree from UNPAR Bandung (1987)• Doctorate Degree from UNPAR Bandung (1992)
Organization and Association:• Indonesia Sociology Alliance, Bandung• Chairman of Indonesia Political Science Association, Bandung• Chairman of Indonesia Alliance for Social Sciences Development, Bandung• Public Policy and Business Development Network (Chairman)
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Ir. WINDHU HIDRANTO, MPA
As a former public servant, he has extensive experience in theworkings of government projects and their organizationalmechanism, funded by both government and donor funding. In theprivate sector, he also has extensive experience in the generationof funding for projects (project financing), especially as SeniorAdvisor to the development of projects/investment for variouslocal governments.
He has also been tasked by the United Nations DevelopmentProgram (UNDP) to assist the National Development PlanningAgency (BAPPENAS) in designing the Financing Mechanism for PPPProjects in the “non-infrastructure” (social) sectors, such aseducation and health.
Also, in his role as Transaction Advisor , he has been asked to assistseveral private investors in setting up the most appropriate schemeof PPPs, to “breakthrough” the financing challenges being faced inthe development of infrastructure in Indonesia.
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Ir. WINDHU HIDRANTO, MPA
On the Local Government level, he has helped to design andformulate the Master Plan for Regional Investment (RencanaUmum Penanaman Modal Daerah/RUPMD) and support capacitybuilding of the Coordination Team for Regional PPP (Tim KoordinasiKerja Sama Daerah/TKKSD) of the City of Bekasi.
Among other things, he has also assisted the Directorate General ofHighways (Bina Marga) in designing and formulating the mostappropriate form of PPPs and Government Support inimplementing the National Road Master Plan (NRMP), funded byAUSAID through the INDII project.
Currently, he is working on the preparations for implementing PPPin the Mass Rapid Transit (MRT) system , the sewerage system, andproperty development in Jakarta, and the water supply system inBali.
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RIDWAN RAMLI, SE, AK
Financial expert, initial background as an accountantand working as external auditor for over 5 years, andaround 19 years involved as Internal FinanceProfessional in various companies and businesses,having extensive networking with air transportationand telecommunication society, as well as Indonesianbanking and financial institutions. Starting in 2009, joinPPP Indonesia as a director as well as a partners of thecompany.
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LOCAL GOVERNMENTLOCAL GOVERNMENT
PPP AGREEMENTPPP AGREEMENT
PRIVATE PARTIESPRIVATE PARTIESSHARES/ OWNERSHIPSHARES/
OWNERSHIPEQUITYEQUITY LOAN AGREEMENTLOAN AGREEMENT DEBTDEBT
SUB CONTRACTORConstruction
SUB CONTRACTORConstruction
SUB CONTRACTOROperator
SUB CONTRACTOROperator
SUB CONTRACTSSUB CONTRACTS
PPP GENERIC PROJECT FINANCING STRUCTURE
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PHASE I :PLANNING OF
PPP PROJECTS
PHASE I :PLANNING OF
PPP PROJECTS
PHASE II :THE PREPARATION OF STUDIES
FOR PPP PROJECTS
PHASE II :THE PREPARATION OF STUDIES
FOR PPP PROJECTS
PHASE III :PPP PROJECT
TRANSACTIONS
PHASE III :PPP PROJECT
TRANSACTIONS
PHASE IV :IMPLEMENTATION OF PPP PROJECT MANAGEMENT
PHASE IV :IMPLEMENTATION OF PPP PROJECT MANAGEMENT
• PPP Project Identification
• PPP Project Selection• Placement of PPP
Projects• Output :
List of PPP Projects and Study Documents
• PPP Project Identification
• PPP Project Selection• Placement of PPP
Projects• Output :
List of PPP Projects and Study Documents
• The planning of PPP project tenders
• The implementation of PPP project tenders
• The preparation of PPP Project contract signing
• Output : PPP Project contract signing
• The planning of PPP project tenders
• The implementation of PPP project tenders
• The preparation of PPP Project contract signing
• Output : PPP Project contract signing
• The planning of Management for the implementation of PPP Projects
• Implementation of PPP Projects
• Output : Management for the Implementation of PPP Project and Reporting Documents
• The planning of Management for the implementation of PPP Projects
• Implementation of PPP Projects
• Output : Management for the Implementation of PPP Project and Reporting Documents
Confirmation of Government Support/
guarantee from PPRF/BUPI
Confirmation of Government Support/
guarantee from PPRF/BUPI
Application process requirement for Government Support/Guarantee
Application process requirement for Government Support/Guarantee
Output :Documents Pre-Feasibility of PPP projects
Output :Documents Pre-Feasibility of PPP projects
Preparation of initial study/Pre-FS
Preparation of initial study/Pre-FS
Preparation of Pre-FS or FS
Preparation of Pre-FS or FS
Conclusionof Pre-FS or FS
Conclusionof Pre-FS or FS
LAND ACQUISITION PROCESSLAND ACQUISITION PROCESS
INVOLVEMENT OF RELATED ORGANIZATIONS/INSTITUTIONSINVOLVEMENT OF RELATED ORGANIZATIONS/INSTITUTIONS
PPP Project Executing Agency/Bappenas
PPP Project Executing Agency/Bappenas
Public Consultation :Consultative Interaction
Public Consultation :Market Sounding
Public Consultation :Distribution of Information
List of PPP Projects
PJPK, KKPPI, BKPM, BAPPENAS, Ministry of Finance (PPRF/BUPI)PJPK, KKPPI, BKPM, BAPPENAS, Ministry of Finance (PPRF/BUPI)
PJPK, KKPI, PPRF/BUPI, BKPM, BAPPENAS
PJPK, KKPI, PPRF/BUPI, BKPM, BAPPENAS
PJPK, BKPM, BAPPENAS, PPRF/BUPIPJPK, BKPM, BAPPENAS, PPRF/BUPI
STAGES OF PPP IMPLEMENTATION
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Public to Private Continuum
Fully Public Management Contracts Concession Fully Private
1. State Companies2. Joint Venture Public3. Cooperatives4. Corporatized
Cooperatives and State Companies
1. Generic Management2. Outsourcing3. Franchising
1. Typical Concession2. Joint Venture/Private3. Leasing4. BOT/BOO
1. Fully Private – License2. Fully Private – Sale3. Private Supply
FORMS OF PPPs – PROJECT MODALITIESProject modalities refers to the spectrum of public to private participation possible in a given project
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MINISTER/HEAD OF INSTITUTION/REGIONAL
HEAD
MINISTER/HEAD OF INSTITUTION/REGIONAL
HEAD
PROJECT PROPOSALPROJECT PROPOSAL
PROJECT INITIATOR/ BUSINESS ENTITY
PROJECT INITIATOR/ BUSINESS ENTITY
PUBLIC CONSULTATIONPUBLIC CONSULTATION
PPP AGREEMENTPPP AGREEMENTSELECTED BUSINESS
ENTITYSELECTED BUSINESS
ENTITY
Provision ofcompensation on PPP agreement
Provision ofcompensation on PPP agreement
• Pre-Feasibility Study• PPP Planned Scheme• Project Financing Plan
& Source of Funding• PPP Tender Plan
(Schedule, Process & Assessment)
PROJECT PRIORITY LIST
PROJECT PRIORITY LIST
PUBLIC TENDERPUBLIC TENDER
• National /RegionalDevelopmentPlans
• Spatial Planning• Sectoral & Regional
Planning• Social Cost & Benefit
Analysis
FLOW DIAGRAM of PPP AGREEMENTS
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MONITORING & CONFIRMING
SELECTION AND PRIORITIZATION
SELECTION AND PRIORITIZATION
SELECTION AND PRIORITIZATION
1. Project Assessment• Need Analysis • Value for Money
Analysis• Public
Consultation2. Identifying and
determining Priority Projects• Multi-Criteria
Analysis
1. Feasibility Study• Project Technical
Evaluation• Social Benefit
Cost Analysis• Financial Analysis• Risk Assessment
2. Market Sounding3. Identifying
Government Support Need
4. PPP form Selection5. Determining
Procurement of PPP Project
1. Forming Committee 2. Bidding Documents
Set Up3. Bidders
Prequalification4. Execution of Tender 5. Bidding Evaluation6. Determining Winning
Candidates
MONITORING & CONFIRMING
1. Preparing Negotiating Strategies
2. Forming Negotiating Team
3. Prepared Risk Limitation Allocation
4. Negotiating PPP Agreement Draft
5. Determining the Winner
1. Financial Closing2. Construction3. Commissioning4. Operation5. Monitoring6. Transfer of Asset at
End of Concession (if applicable)
PPP CYCLE & ANALYSIS
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• Suitability Assessment
• Pre FS• Strategic Level of the
Project
• Legal Framework• Institutional Setting• National Policy
• Key Stakeholder Analysis
• Communication Strategy
• Concept Delivery Strategy
• Selection of Approach to the Project purely Public Project VS PPP
• Desired Gains• Obstacles and
Constraints• Private Sector
Interest• True Cost of Services• Cost-Benefit PPP
• Public Sector Comparator Analysis
• Value for Money Analysis
• Risk Analysis• Fiscal Support
Analysis
• Project Design • PPP Design• Type and Level for
Support• Detail FS• Financial Assessment
• Integration PPP into Design
• Funding Requirement• Financial & Social
Economic Appraisal• Project Finance Study• Investment Bank Study• Tax Scheme Study
• Project Structuring• Complete FS
Assessment• Market Sounding
IMPLEMENTATION
• Procurement Process selection & Design
• Tender• Evaluation• Negotiation• Contracting
• Procurement Procedure Selection & Design
• Open & Transparent Process
• Detail Recording & Documentation
• Bid Strategy Analysis
• Negotiation Tactic
STAGES
REQUIREMENTS
TOOLS
BIDDINGDESIGN &
AGREEMENTPROJECT
APPRAISALPROJECT
IDENTIFICATION
PPP PROJECT REQUIREMENTS & TOOLS
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GOVERNOR
1. Determination of PPP Project Priority
2. Determination of Tender Committee3. Determination of Tender Winner4. Contract Signing
PPP UNIT
1. Identification and Inventory of PPP Projects and Private Initiative Project
2. Public Consultation3. Preparation of Governor’s Decree
and Project Priority List4. PPP Project Priority Publication List5. Tender Document Ratification6. Winning Candidates Evaluation7. Contract Draft Agreement
TECHNICAL UNIT
1. PPP Project Complete Proposal2. Bidding Document Preparations3. Tender Committee Proposal4. Contract Draft Preparation
TENDER COMMITTEE
1. Conducting Public Tender2. Proposing Winning Candidates
PPP = Public-Private Partnerships; Contract = PPP Agreement COORDINATION
ASSIGNMENT
MECHANISM OF PPP PROJECT FLOW FOR INFRASTRUCTURE DEVELOPMENT PER PRESIDENTIAL REGULATION 67/2005 & 13/2010
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GOVERNMENT/SECTOR PROPOSAL
Documents :1. Pre-Feasibility Study
report result2. PPP form plan3.Project financing and
source of fund plan4. PPP deals plan that
covers; schedule;process and assessment
5.Public consultationdocuments that considerthe implementation oflegality andtransparency principlescriteria
KKPPI FEASIBLERISK MANAGEMENT
UNITMINISTRY OF
FINANCEPARLIAMENT
Approval to be budgeted in State Budget
MINISTRY/AGENCY/LOCAL GOVERNMENTEXECUTE TENDERMakes minutes of thetender results to theMinister/RMU toensure Contractfairness
Project qualityevaluation basedon; technical andfinancial criteria
Evaluation :Not to exceed thecapacity andtransparency
Support :Support period, risksharing scheme,risk managementalternatives
Recommendation :Feasible/notFeasible
RMU RECOMMENDATION
MINISTRY OF FINANCE
Final approvalpermission orrejection ofGovernment supportprovision
Contract signing byContracting Agencyafter Governmentsupport final approval
GOVERNMENT SUPPORT PROCEDURE
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PHASE 4Performance Management
PHASE 1Planning
PHASE 2Preparation of
Pre-FS
PHASE 3Project
Transaction
• Procurement Plan• Procurement
implementation• Contract signing
OUTPUT : COOPERATION AGREEMENT SIGNING
SUCCESS INDICATORS :Competent privatepartners selection andgood PPP agreement
SUCCESS INDICATORS :Competent privatepartners selection andgood PPP agreement
Note : try not to start this stage if the entire project preparation hasn’t been completedor there are pending issues
PPP TRANSACTION PROCESS COMPANION
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Presidential Regulation 67/2005
Regarding Cooperation Between
the Government and Business
Entity in Infrastructure Provision
amended through Presidential
Regulation 13/2010
Article 51 Presidential
Regulation 80/2003
Goods/services procurement
which are conducted through a
PPP scheme between Government
and business entities, are
regulated by a separate
presidential decree/regulation
Conclusion :
Presidential Decree 80/2003
(now Presidential Regulation
54/2010 : APBN/APBD funds
Government Projects)
Presidential Regulation 67/2005
(amended through Presidential
Regulation 13/2010) :
Private funds (PPP Projects)
PRESIDENTIAL REGULATION 67/2005 IS BASICALLY A PROCUREMENT REGULATION
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DIRREFERENCES IN INFRASTRUCTURE PROVISION THROUGH PPP AND PROCUREMENT OF PUBLIC GOODS/SERVICES
CASE PPP PROCUREMENT OF GOODS/SERVICES
Legal Basis PP 50/2007, PerPres 67/2005 jo PerPres 13/2010, Bappenas Regulation 4/2010, Permendagri 22/2009, Sectoral Regulation
PerPres 54/2010
Basic Studies Pre-Feasibility Studies Feasibility Studies
Source of Funds Private + Government Support (if necessary) Government (APBN/APBD), PHLN
Technical Specification Output ( based on Basic Design) Input (based on Detailed Engineering Design)
Procurement Organization PJPK, PPP Unit/TKPK, Auction Committee PA, KPA, PPK, ULP, Procurement Officer, the Committee/Official Job Result Recipient
Selection Method Public Tender Public Tender/Simplified Tender/Direct Appointment /Direct Procurement/Competition
Document Delivery Method Two Envelopes One Envelope/Two Envelopes/Two Stages
Bidding Evaluation Method Not specifically arranged(according to the sector and project characteristics)
Based on Quality, Quality and Cost, Budget Ceiling, or the lowest Cost
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CONTACT US
LIMAU CENTERJALAN LIMAU I NO. 2
KEBAYORAN BARU, JAKARTA SELATAN 12130
INDONESIA
TELP/FAX: +62-21-724-4669; +62-21-722-3902; +62-724-3346
MOBILE: +62-856 850 4151
SMS CENTRE: +62 858 8292 9598
EMAIL: [email protected]
www.pppindonesia.co.id
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