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Infrastructure projects that can be guaranteed by IIGF are those involving Public Private
Partnership (PPP), based on the criteria stipulated in Presidential Regulation No. 13/2010. The
regulation states 8 (eight) sectors that can be guaranteed: Transportation, Toll Road/Highway,
Irrigation, Water, Waste, Telecommunication and Informatics, Electricity, and Transmission
and/or Oil and Gas Distribution. Generally, the PPP projects that can be guaranteed by IIGF are
those whose private partner selection is conducted in compliance with Presidential Regulation
No. 13/2010. The PPP projects must go through tender process; technically, economically and
financially feasible and meet the environmental and social requirement. Other criteria include
comply by sectoral regulations, have feasibility studies conducted by credible experts, and have
a binding arbitration clause in the contract.
There are some type of PPP scheme based on the service and risk sharing. One of the scheme
is availability payment scheme. Within this scheme, private directly provides infrastructure
services to users, where the Government plays more role as regulator. This structure is often
referred to as the Full Concession model and generally used in transportation sector (i.e. toll road,
train, and port) and also utility sector (i.e. wastewater). In this scheme, CA contractually agreed
to provide a concessionary right to supply overall infrastructure services during the contract period
agreed.
Note\
AP is periodic payments by the Minister / Head of Institution / Head of Region to the
Implementing Company for the availability of infrastructure services in accordance with
the quality and / or criteria as determined in the PPP agreement
AP covers Capex, Opex and investment rate of return
The AP may not cover promotional costs and tariff service revenue management fees
Scope
AP is paid by the Government (CA) during the operation period with a long-term payment
commitment (> 10 years)
During the construction period there is no payment to the Business Entity