public-private partnership (ppp) scheme in …-modified bot scheme (i.e., revenue sharing concept,...
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PUBLICPUBLIC--PRIVATE PARTNERSHIP (PPP) SCHEMEPRIVATE PARTNERSHIP (PPP) SCHEMEIN INDONESIAN TOLL ROAD DEVELOPMENT IN INDONESIAN TOLL ROAD DEVELOPMENT
Rudy Hermawan
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BACKGROUND OF TOLL ROAD BACKGROUND OF TOLL ROAD DEVELOPMENT IN INDONESIADEVELOPMENT IN INDONESIA
Congestion in highly growth regions resulting inefficient travel times and high vehicle operating costs.Policy to encourage road network development and its benefits, as well as balanced inter-regional development.Increase in infrastructure investment will accelerate economic growth and deliver prosperity Toll roads proposed in highly developed regions, where vehicle operating cost and time savings sufficiently cover the toll road construction and operation.Government budget priority is utilized in less developed regions to encourage regional development.
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PERIOD
First Period (1978 – 1983) Fully financed by Government funds (Government Equity)
Second Period (1983 – 1990)
Third Period (1990 – 1994) Cooperation with private sector using BOT scheme
SCHEME OF FINANCING
- Modified BOT scheme (i.e., revenue sharing concept, land acquisition cost is part of investment cost borned by the investor).
- Modified Turnkey Scheme (Contractor finance land acquisition and construction costs, JasaMarga repay the cost including accrued interest from its toll revenue).
Fourth Period (1994 – 2005)
STAGES OF TOLL ROAD FINANCINGSTAGES OF TOLL ROAD FINANCING
- Subsidiary Loan Agreement (SLA) to PTJasa Marga (two step loan), SOE for toll road development
- Jasa Marga’s Bonds
Fifth Period (1990 – 1994) BOT/ PPP Scheme
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Law and Regulation for Toll RoadLaw and Regulation for Toll Road
Law Republic Of Indonesia No 38/2004 about ROADS
Government Regulation of The Republic of Indonesia No 15/2005 about TOLL ROAD
Presidential Regulation No. 67/2005 about Cooperation between Government with Private Company in Infrastructure Provision
Regulation of Minister of Public Works No 295/PRT/M/2005 about TOLL ROAD REGULATORY BODY
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Regulatory ReformsRegulatory ReformsIn general a toll road is built as an alternative link, but under particular situation it may not serve as an alternative link;
Toll Road Link is decided by the minister;
Distinction on the rules of regulator and operator, the Badan Pengatur Jalan Tol(Indonesia Toll Road Authority) or BPJT as regulator, and the business entity as operator;
Tariff determined by the minister and adjusted biannually based on inflation
Open and transparent tender process
Land acquisition budget from the government and/or investor.
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BPJT Tasks and FunctionsBPJT Tasks and Functions
Recommend the initial tariff and tariff adjustment of toll to the Minister;Takeover toll road development rights following the expiry of the concession period, and recommend further operation to the Minister;Takeover of temporary toll road development right that has failed starting with the concession, for re-tendering of the development;Prepare the toll road development which include analysis of economics and financial feasibility, and environment impact assesment;Seek investment in toll roads through transparent and open tenders;Assist the land acquisition process if there is guarantee of availibility of fund from the Enterprise and to prepare the mechanism of the use thereof;Monitor the activities of planning and execution of construction works as well as the operation and maintenance of toll roads by the Enterprise; andSupervise the fulfillment of all the obligations under the toll road concession agreements and report the results periodically to the Minister.
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BPJT BPJT –– ORGANIZATION STRUCTUREORGANIZATION STRUCTURE
Technical Division
MEMBER (MPW)
Secretary
Sub Division Sub Division Sub Division
Investment Division Monitoring and Supervision Division
General Affair Division
Sub Division
MEMBER (MoF)
MEMBER (Professional Association)
MEMBER (Academic Rep)
Professionals
CHAIRMAN OF BPJT (MPW) BOARD
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TOLL ROAD INVESTMENT PROCEDURETOLL ROAD INVESTMENT PROCEDURE
PELAKSANAAN PERJANJIAN / AGREEMENT IMPLEMENTATIONPELAKSANAAN PERJANJIAN / AGREEMENT IMPLEMENTATION
(± 14 months)
(± 4-6 months)
PENYIAPAN DOKUMEN PQ/ PREPARE PQ DOCUMENT
PENYIAPAN DOKUMEN PQ/ PREPARE PQ DOCUMENT
PENYERAHAN DOKUMEN PQ/ SUBMIT PQ DOCUMENT
PENYERAHAN DOKUMEN PQ/ SUBMIT PQ DOCUMENT
PENYIAPAN USULAN PENAWARAN/PREPARE BID PROPOSAL
PENYIAPAN USULAN PENAWARAN/PREPARE BID PROPOSAL
PENYERAHAN USULAN PENAWARAN DAN JAMINAN
/SUBMIT BID PROPOSAL & BID BOND
PENYERAHAN USULAN PENAWARAN DAN JAMINAN
/SUBMIT BID PROPOSAL & BID BOND
PENERIMAAN PENETAPAN PEMENANG/ RECEIVE NOTICE AWARD
PENERIMAAN PENETAPAN PEMENANG/ RECEIVE NOTICE AWARD
BADAN USAHA/PRIVATE SECTOR
TANDA TANGAN PERJANJIAN/ SIGN CONTRACT
TANDA TANGAN PERJANJIAN/ SIGN CONTRACT
JAMINAN PELAKSANAAN,DANA PENGADAAN TANAH,
DUKUNGAN BANK/ BOND, LAND ACQUISITION COST, FINANCIAL
CLOSURE
JAMINAN PELAKSANAAN,DANA PENGADAAN TANAH,
DUKUNGAN BANK/ BOND, LAND ACQUISITION COST, FINANCIAL
CLOSURE
RAPAT PENJELASAN PRA-LELANGPERSIAPAN LELANG/ PRE BID
CONFERENCE-BID PREPARATION
RAPAT PENJELASAN PRA-LELANGPERSIAPAN LELANG/ PRE BID
CONFERENCE-BID PREPARATION
PENGUMUMAN/UNDANGAN PQ & LELANG/ PQ AND BID INVITATION
PENGUMUMAN/UNDANGAN PQ & LELANG/ PQ AND BID INVITATION
EVALUASI PRAKUALIFIKASI/ PREQUALIFICATION OF BIDDER
EVALUASI PRAKUALIFIKASI/ PREQUALIFICATION OF BIDDER
PEMASUKAN DAN PEMBUKAAN PENAWARAN
/ RECEIPT AND OPENING BID
PEMASUKAN DAN PEMBUKAAN PENAWARAN
/ RECEIPT AND OPENING BID
PERSIAPAN PEKERJAAN/ PROJECT PREPARATION
PERSIAPAN PEKERJAAN/ PROJECT PREPARATION
EVALUASI PENAWARAN/EVALUATION OF BID
EVALUASI PENAWARAN/EVALUATION OF BID
KEPUTUSAN/PENETAPAN PEMENANG/ APOINTMENT OF SUCCESFUL BIDDER
KEPUTUSAN/PENETAPAN PEMENANG/ APOINTMENT OF SUCCESFUL BIDDER
PERJANJIAN PENGUSAHAANJALAN TOL (PPJT)/ CONSESSION
AGREEMENT
PERJANJIAN PENGUSAHAANJALAN TOL (PPJT)/ CONSESSION
AGREEMENT
BPJT/GOVERMENT
PENYIAPAN PERUSAHAAN JALAN TOL/ PREPARE SPECIAL
PURPOSE VEHICLE
PENYIAPAN PERUSAHAAN JALAN TOL/ PREPARE SPECIAL
PURPOSE VEHICLE
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TOLL ROAD INVESTMENTTOLL ROAD INVESTMENT
GOVERNMENT
GOV & ENTER-PRISE ENTITY
ENTERPRISE ENTITY
ECONOMIC (+)FINANCIAL (-)
ECONOMIC (+)FINANCIAL (Marginal)
ECONOMIC (+)FINANCIAL (+)
TOLL ROAD INVESTOR APLICATION
GOV
EE
GOV EE
EE
EE
EE
Operation and Maintenance
Financing and/or Construction GovernmentEnterprise Entity
GOVEE
1
2
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Example:Case 1: Tanjung Priok AccessCase 2: Solo - KertosonoCase 3: BOT on Toll Road in general
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Applied in all modelsGovernment can support Land Acquisition and construction cost (fully or partly)All built by investor
PPP APPLICATIONPPP APPLICATION
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Model/Case 1 : Tj. Priuk Access
Land and Construction cost funded by GovernmentOperation and Maintenance done by OperatorAssignment operator through bidding process (the lowest O & M cost)O & M cost can be fix or % of revenue
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Model/Case 2
Land and Part of Construction cost borne by Government (i.e Subsidize)Amount of subsidize is tender or negotiation subjectOne example : Government borne all land cost and 27% of toll road length after negotiation
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Model/Case 3
Applied to almost all toll roads that economically and financially visibleAll cost (including land acquisition, construction, operation and maintenance) is borne by investorBidding criteria is the lowest tariff offer by investor
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Special Case Renegotiation I
Applied to toll roads operated before 2005 due to the changing of the law and role of regulator13 roads operated by Jasa Marga were bundled and given concession5 roads operated by others still processed to renew the concession agreementRenegotiation is based on financial auditing
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Special Case Renegotiation II
Applied to several toll roads that just signed the agreement in 2006 due to unanticipated fuel price increase by governmentThe compensation were given in form of higher tariff and/or prolonge concession periode
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INVESTMENT OPPORTUNITYINVESTMENT OPPORTUNITY
Private Sector - Foreign Direct Investment:As a strategic partner for the investor that has been appointed to develop the toll road Financial Support New investment through the tender process
Government loan through bilateral G to G programLoan through multilateral agencyFinancing assistance for the Pre-FS, FS, EIA, DED and other documentsFinancing assistance for toll roads construction which are required for economic and/or regional development but less financially feasibleetc
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ROOM FOR IMPROVEMENT
Minimum Traffic Level GuaranteeTax BenefitsCredit Guarantee FundForeign Exchange Risk Mitigation
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Development Constraint
Land Acquisition ProcessFunding availabilityLand Use Development Policy and ConsistencyRisk allocationPolitics and Misperception
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Program of Toll Road Development in 2005 Program of Toll Road Development in 2005 --20092009
MAIN ROAD ACCESSA1 Jakarta-Bogor-Ciaw i 50.00 9.00 PT. Jasa Marga 1978 CA Signed 7 July 20062 Jakarta - Tangerang 27.00 6.00 PT. Jasa Marga 1983 - 1998 CA Signed 7 July 20063 Surabay a - Gempol 43.00 6.00 PT. Jasa Marga 1984 CA Signed 7 July 20064 Jakarta - Cikampek 72.00 11.00 PT. Jasa Marga 1985 CA Signed 7 July 20065 Padalarang - Cileuny i 35.63 28.77 PT. Jasa Marga 1986 CA Signed 7 July 20066 Prof. DR Soedy atmo 14.30 PT. Jasa Marga 1986 CA Signed 7 July 20067 Lingkar Dalam Kota Jakarta 23.55 PT. Jasa Marga 1988 CA Signed 7 July 20068 Belmera 33.70 9.00 PT. Jasa Marga 1989&1996 CA Signed 7 July 20069 Semarang Seksi A, B, C 24.75 PT. Jasa Marga 2003 CA Signed 7 July 2006
10 Ulujami-Pondok Aren 5.55 PT. Jasa Marga 2003 CA Signed 7 July 200611 Cirebon-Palimanan 26.30 PT. Jasa Marga 1990 CA Signed 7 July 200612 JORR W2 Selatan (Pondok Pinang - Veteran) PT. Jasa Marga 1991 CA Signed 7 July 2006
JORR E1 Selatan (Taman Mini - Hankam Ray a) PT. Jasa Marga 1998 CA Signed 7 July 2006JORR E2 (Cikunir - Cakung) PT. Jasa Marga 2001 - 2003 CA Signed 7 July 2006
13 Cikampek – Padalarang I 17.50 PT. Jasa Marga 2003 - 2004 CA Signed 7 July 2006Total 390.05 69.77
Sub Total A 459.82B1 Tangerang - Merak 73.00 PT. Marga Manggalasakti 1983 - 1996 Process to Renew CA2 Ir. Wiy oto Wiy ono, MSc. 15.50 PT. Citra Marga Nusaphala Persada 1990 Process to Renew CA3 Surabay a - Gresik 20.70 PT. Margabumi Matraray a 1993 - 1996 Process to Renew CA4 JORR Selatan (Pondok Pinang - Taman Mini) 14.25 PT. Jalan Tol Lingkar Luar Jakarta 1995 - 1996 Process to Renew CA5 Harbour Road 11.55 PT. Citra Marga Nusaphala Persada 1995 - 1996 Process to Renew CA6 Ujung Pandang Tahap I 6.05 Bosaw a marga Nusantara 1998 Process to Renew CA7 Serpong - Pondok Aren 7.25 PT. Bintaro Serpong Damai 1999 Process to Renew CA
Total 148.30Sub Total B 148.30
Total 608.12
No. TOLL ROAD LINKLENGTH
INVESTOR/ OPERATOR
DIKELOLA SEKTOR SWASTA LAIN
START OPERATION
REMARK
DIKELOLA PT JASA MARGA
16.77
Toll Road In Operation Before 2005
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TOLL ROAD DEVELOPMENT PROGRAMTOLL ROAD DEVELOPMENT PROGRAMAcceleration of 1,978.6 km toll road development program, total cost US$ 10.96 Billion(1 US$ = Rp. 9,300)
A. Implemented by GovernmentProject is economically feasible, but not financiallyfeasible(2 toll road links, 17,5 km)
B. Implemented by PT Jasa Marga(8 toll road links, 93.9 km)
C1. Implemented by On Going Investor(5 toll road links, 100 km)
C2. Evaluation of Investors (1997 Tender)(14 toll road links, 682.15 km)
C3. Tender Investment(23 toll road links, 1.085.6 km)
• Soft Loan
• Strategic Partner • Debt Financing
• Strategic Partner
• Strategic Partner • New Investors
• Strategic Partner • Debt Financing
Investment Opportunity
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Program of Toll Road Development Program of Toll Road Development in 2005 in 2005 -- 20092009
NUMBER OF LENGTH COST
LINKS (km) (Billion Rp.)
OPERATION 4 51.60 3,012.21CONSTRUCTION 7 114.55 11,230.35CA SIGNED 16 641.17 48,122.91CA FINALIZATION 3 104.72 12,203.70TENDER PROCESS BATCH II 4 61.94 9,159.00TENDER PROCESS BATCH III 2 177.12 8,096.61TOTAL 36 1,151.10 91,824.78
STATUS JUNE 2007
STATUS
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Thank YouThank You