iif presentation - eibd 19nov2014.pptx
TRANSCRIPT
Private Sector Participation (PSP)
in Indonesian Regional Airports Development
EU-Indonesia Business Dialogue Shangri-La, Jakarta 19 November 2014
FOR DISCUSSION PURPOSES ONLY
1
Establishment of IIF
Shareholders
PT Indonesia Infrastructure (IIF) is a private non-bank financial institution formed by and under the Ministry of Finance of the Republic of Indonesia. Licensed under the Minister of Finance Regulation (PMK) No. 100/2009, IIF is professionally managed and focused on supporting and investing in commercially feasible infrastructure projects. The establishment of IIF is a key element of strategic development by Government of Indonesia and development partners among international financial institutions to address the constraints on the flow of private investment in Infrastructure.
Target Sectors
33.88%
19.99% 19.99% 11.24% 14.90%
Transportation infrastructure
Waste / waste-water infrastructure
Road infrastructure
Telecommunication and information infrastructure
Irrigation infrastructure
Electricity infrastructure
Drinking water infrastructure
Oil and gas infrastructure
IIF’s Vision & Mission To provide capital for infrastructure in Indonesia and to work closely with Infrastructure sponsors, the financial sector, and the Government of Indonesia to accelerate the construction of well-conceived, commercially viable infrastructure projects.
• To ensure investors’ needs are reflected in contractual structures and concessions.
• To lead in offering a mix of long term financing instruments appropriate for infrastructure.
• To work with Indonesia’s financial institutions and other institutional investors to channel the nation’s saving into the long term development of Indonesia’s Infrastructure.
2
IIF Investment Products
INVESTMENTPRODUCTS
FUND - BASED
NON FUND - BASED
FIN
AN
CIN
G P
ROD
UCT
S Project
Life Cycle
• Senior Loan • Subordinated
Finance (Mezzanine)
• Guarantee
End of Financing Period
• Refinancing
• Share Investment
• Stand-by Finance
Project Preparation
Project Construction
Project Operation
End of
Con-cession
Tender Investment Projects
Syndicated Financing for Cikampek-Palimanan 116-Km
Toll Road in West Java (Project Cost: IDR12.56tn)
Mandated Lead Arranger syndication for Telecom Tower
Company (Total issuance: USD475mn)
Lead Arranger for 2x35MW Gas-Fired Power Plant
in Batam
Syndicated Financing for 180MW Hydro Power Plant in North Sumatra
Syndicated Financing for Mobile Telecommunication Service
Provider
Syndicated Financing for Power Platform Company with 300MW
Installed Capacity
Syndicated Financing for Gresik LPG Plant
Corporate Credit Facility for Air Transport Maintenance Facility
3
IIF Advisory Services
ADVISORY
SERVICES
Project Life
Cycle
PROJECT TYPES
Syndica2on
TransactionAdvisor
Financial Advisor
• PPP under Presidential Regulation No.67/2005 jo Presidential Regulation No.13/2010 and No.56/2011
• Private Project under “Izin Pengusahaan”
• Projects funded by state budget
• Private to private
Project Construction
Project Operation
End of
Con-cession
Tender Project Preparation
Public Sector Advisory
On-Going Projects
West Semarang Water Supply PPP Transaction
Advisor
Borapulu Geothermal Power Plant PPP Transaction
Advisor
Private Sector Advisory
On-Going Project
PPP Project
G. Kromong Geothermal Power Plant PPP Transaction
Advisor
Government Motives for PSP in Airports
4
Allocated Budget 2010-2014 (233 Airports)
Actual Funding Requirement (233 airports)
USD 5 billion/ 5 years
USD 2 billion/ 5 years
Investment Service Quality
Inadequate capacity expansion to meet growing demand
Low quality of service and asset management
Government motives for PSP:
Principles: • Competitive award • Transparent process • Performance based
• Improve service quality • Capacity expansion • Risk sharing
The Selected 10 Airports
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Fatmawati - Bengkulu Hanandjoeddin – Tj. Pandan
Radin Inten II - Lampung
Juwata –Tarakan
Komodo – Labuan Bajo
Mutiara – Palu Sentani – Jayapura
Tjilik Riwut – Palangkaraya
Matahora – Wakatobi
Sultan Babullah – Ternate
Ref. : Studi RINBU, MOT
Public Airport = 299 airports (excl. reloca1on) -‐ UPT DGCA : 273 airports -‐ PT. AP I : 13 airports -‐ PT. AP II : 13 airports
Scope of service area : - Sumatera & Java : 100 km (radius) - Kalimantan & Sulawesi : 60 km (radius) - NTB, NTT, Maluku & Papua : 30 km (radius)
International Airport : - Main : 5 airports - International : 24 airports
Hierarchy : - Main Hub : 17 airports - Secondary Hub : 27 airports - Tertiary Hub : 28 airports - Spoke : 227 airports
Criteria for airport PSP (brownfield projects) • Passanger volume > 500.000/year • Traffic growth > 5% per annum • Potential to support economic growth • Clear status on land/asset ownerships
No Brownfield 1 Fatmawati - Bengkulu 2 Radin Inten II - Lampung 3 Hananjoeddin - Tj. Pandan 4 Tjilik Riwut - Palangkaraya 5 Juwata - Tarakan 6 Mutiara - Palu 7 Sultan Babullah - Ternate 8 Sentani - Jayapura 9 Komodo - Labuhan Bajo *
10 Matahora - Wakatobi *
Existing Airports in Indonesia Potential Airports for PSP
8 bandar udara UPBU + 2 bandar udara pariwisata (*)
The Selected 10 Airports
No Airport Name MoT Score
Revenue 2012
(IDR mn)
Aircraft Mov’mts
2011
Passenger 2011
(‘000 pax)
Cargo Traffic 2011
(‘000 kg)
Terminal Area (m2)
Regional Development
Potential
1 Sentani, Jayapura 7.39 18,542 47,494 1,124 63,329 2,910 Eastern Indonesia
Cargo Hub
2 Juwata, Tarakan 6.71 18,200 13,668 770 8,453 6,757 Trade and
Agribusiness
3 Fatmawati Soekarno, Bengkulu
6.22 6,313 5,545 577 2,246 2,807 Agribusiness & Mining
4 S. Babullah, Ternate 6.00 6,627 8,562 477 40 751 Agribusiness
5 Radin Inten II, Lampung 5.92 7,968 15,464 1,034 2,469 2,016 Agribusiness and
fisheries
6 Tjilik Riwut, Palangka Raya 5.79 7,300 6,320 606 3,643 5,734 Mining & Plantation
7 Mutiara, Palu 5.24 7,960 7,234 783 8,413 n.a. Airport Hub
8 H.AS. Hananjoeddin, Tanjung Pandan
4.86 3,218 17,509 512 1,578 1,668 Mining & Tourism
9 Matahora, Wakatobi n.a. n.a. 112 3.2 n.a. n.a. Tourism
10 Labuan Bajo, Komodo n.a. 1,132 3,144 131 161 795 Tourism
Source: Ministry of Transportation
6
10 Airport Candidates
8 Priority Airports
MOT selected airports based on the following aspects: • Regional Economy Condition
• Market • Consistency with Government’s Program
• Accessibility
2 Tourism Airports
Source of Revenue Streams & Private Participation Level
Air Side Support Facilities Land Side Support Facilities
ATC GTC Runway Taxiways Apron Terminal Parking Hotel
Priv
ate
Part
icip
atio
n Le
vel b
ased
on
Type
of
Cont
ract
s an
d So
urce
of
Fund
ing
Management Contract (brownfield)
Leasing (brownfield)
Concession (brownfield/greenfield) BTO, BOT (expansion/greenfield)
Sale / Divestiture (brownfield)
Pote
ntia
l Sou
rce
of
Reve
nues
Contract period based
Passenger frequency related
Airline frequency related
Aviation facilities and services (landing/take-off, parking, lighting, noise
surcharge, ramp services, cabin cleaning, etc.
Fees from passenger services & baggage/cargo handling
Retail revenues Revenues from
parking& real estate
traffic control fees (air side & land side)
BOO (greenfield)
Gov’t budget
Private 7
Key Question: • What type of facilities and business model that the private sector is interested in?
The Potential for Certain Type of Private Participation
Source: World Bank & PPIAF, 2010 and IIF analysis
Types of Airports
Airport revenues / passenger
Highly developed
US$26
Middle income
US$15
Low income
US$8
Traffic (pax) 385,000 1.35mn 1.5mn 5jt 6jt
Mgt contract
Terminal concession/BOT
Airport concession/trade sale
8
• Jayapura • Lampung • Komodo • Palu
• Wakatobi • Bengkulu
• Palangka Raya
• Tanjung Pandan
• Tarakan • Ternate
BOT model can be considered if there is
“build” component
Key Question: • What are the private sector interests and also ideas to be able to participate more and invest in the
development of the mentioned airports?
Proposed Next Steps After Initial Market Consultation
9
Due Diligence
and Finalize Pre-FS
Award & Signing Bid
Submission & Evaluation
Bid negotiation RFP
Issuance EOI and PQ
Final RFP
Financial Close
Project Preparation and Transaction Process
PPP Structuring
Transaction Market
Sounding
Guarantee Application to IIGF
VGF Application
to MoF
PPP Book
Project Planning /
Prioritization
Transaction Implementation - Scope of Work (12-18 months)
Phase 1: PPP due diligence and structuring • PPP due diligence (technical, financial, economic, and legal)
• Project structuring options and market sounding
• Preparation and application of VGF and government
• Preparation of transaction documents (RFQ and RFP) project
agreements Phase 2: Bid implementation and project award
• Bid negotiation and finalization of RFP
• Evaluation of bid and recommendation for project award
• Execution of project agreements and achievement of financial
close
Project Preparation – Scope of Work (6-9 months)
Project Readiness
Review
• Project due diligence and preparation of Pre-FS (Outline Business Case – OBC)
• Project readiness review (Final Business
Case – FBC)
o Land acquisition (if applicable)
o EIA (AMDAL + EP) o Government contribution (e.g.
land, VGF, if applicable)
If project is viable, and bankable structure can be obtained – project will continue to transaction phase
MOT may want to select 3-4 airport project for model transaction • Two/three from priority airports • One from tourism based /pioneer airport
Initial market sounding
More Private Sector Feedbacks To Be Expected
10
Contacts: • Mr. Budi Prasetyo
Deputy Director for Airport Management Directorate General of Civil Aviation, Ministry of Transportation [email protected]
Phone: +62-21 3507623 – 3506661, 3507577 Fax: +62-21 3505571
• Mr. Irman Boyle
Head of Public Sector Advisory – PT Indonesia Infrastructure Finance (IIF) [email protected] Phone: +62-21-29915060 Fax : +62-21-29915061
T h a n k Y o u
PT Indonesia Infrastructure Finance The Energy Building, 30th Floor
Sudirman Central Business District, Lot.11A Jl. Jend. Sudirman Kav.52-53, Jakarta 12190 - Indonesia
Phone 62-21-29915060 Fax. 62-21-29915061 11