developing infrastructure projects
DESCRIPTION
Developing Infrastructure Projects. Contents. InfraCo Infrastructure Project Development InfraCo’s Role How InfraCo Operates InfraCo in Indonesia. InfraCo. Privately managed infrastructure project development company backed by European donor countries* and World Bank - PowerPoint PPT PresentationTRANSCRIPT
Developing Infrastructure Projects
Contents
• InfraCo
• Infrastructure Project Development
• InfraCo’s Role
• How InfraCo Operates
• InfraCo in Indonesia
InfraCo
• Privately managed infrastructure project development company backed by European donor countries* and World Bank
• Operating in Africa, South Asia and South East Asia primarily in power, transportation and water sectors
• Will create privately financed infrastructure projects balancing the interests of host governments, private sector investors and sources of project finance
*PIDG – Holland, Sweden, Switzerland and UK
Infrastructure Development
• Projects require careful structuring to secure implementation, e.g.:Demand riskRegulatory riskExchange rate risk
• High upfront costs involved in early stage development can deter developers
• Government efforts to attract private sector frequently unsuccessful
Infrastructure Development
time
Identify possible opportunities
Pre-feasibility studies (markets, costs, regulation)
Negotiate regulatory contract
Negotiate input supply agreements
Negotiate offtake agreements (volumes, price)
Negotiate contractual subsidies
Secure rights to land, facilities, consents
Negotiate local partnership agreements
Commercial structuring to manage risks
Full business and financial plan
Arrange third party finance
■Early stage infrastructure development is a complex, protracted and risky process
InfraCo’s Role
InfraCo will• Shoulder much of the upfront costs of early stage
project development• Secure in-principle commitments from providers
of finance to support investments subject to entry by a competent private sector sponsor
• Prior to financial close, offer structured investment opportunities to private partners
How InfraCo Operates
• InfraCo will be compensated for its time, efforts and costs by incoming private sector sponsors
Three stages for involvement
• Early stage projects
• Later stage projects
• Existing assets
How InfraCo Operates
InfraCo works with
• Client governments and agencies
• Project development partners – national and international
• Sources of finance – commercial, multilaterals and others
InfraCo in Indonesia
• Key country for InfraCo operation
• Will work in all sectors and all regions
• Initial focus on greenfield and expansion projects
• Will work with governments and development partners
