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: w_hidranto@pppindonesia.co.id

windhu98@yahoo.com

www.pppindonesia.co.id

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