Investment Opportunities Cileunyi – Sumedang – Dawuan Toll Road

Investment Opportunities Cileunyi – Sumedang – Dawuan Toll Road

Investment Opportunities
Cileunyi – Sumedang – Dawuan Toll Road
By. Koentjahjo Pamboedi
Board Member, Indonesia Toll Road Authority
March
2014
March,
2014
Infrastructure; a National Priority

National Priority: pro-growth, pro-jobs, pro-poor,
pro-green.

Government’s target on connectivity agenda: to
connect the main corridor by 2014 (MP3EI Master
Plan), but:

Toll road program has encountered a number of
challenges: large financing requirements, land
acquisition, affordability, project preparation to
regulatory reform.

The remaining toll roads are mainly marginal on
financial viability with low initial traffic flow

The government has established various tools to
support toll road project:
• Land fund  implemented
• Land capping  implemented
• Government guarantee  implemented
• Viability Gap fund  implemented
Regional Approach in Infrastructure Provision
Infrastructure for All & Regional Development



Economic based regional Approach
Public Private Partnership
Public spending for developing and newly developing region
Developed Region
Developing Region
Newly Developing Region
Toll Roads Masterplan
Plam
No
Toll Road
Operated
Program
Priority
Potential
Total
1
Sumatera Island
43 km
60 km
223 km
2.522 km
2.848 km
2
Jawa Island
714 km
1019 km
181 km
486 km
2.400 km
3
Kalimantan Island
-
-
84km
-
84 km
4
Bali Island
10 km
-
-
-
10 km
5
Sulawesi Island
17 km
-
46 km
-
63 km
784 km
1.079 km
534 km
3.008 km
5.405 km
Total
Operation
Program
Priority
Potential
Banda Aceh
Medan
Pekanbaru
Padang
Manado
Samarinda
Pontianak
Jambi
Palembang
Bengkulu
Bd Lampung
Jakarta
Bandung
Balikpapan
Palangkaraya
Banjarmasin
Semarang
Bitung
Surabaya
Yogyakarta
Denpasar
Palu
Kendari
Makassar
INVESTMENT SCHEME AND TOLL ROAD VIABILITY
SBOT/HYBRID
BOT
TRC
GOI
TRC
GOI
O&M/LEASE
TRC
GOI
ASSIGNMENT*
SOE
Land
Acquisition
Construction
O&M
EIRR >>>
FIRR >>>
TRC : Toll Road Company
GOI: Government of Indonesia
SOE: State Owned Enterprise
EIRR >>>
FIRR Marginal
EIRR >>>
FIRR <<<
EIRR >>>
FIRR <<<
*) PP 43 /2013 : assignment of SOEs due to limited budget of GOI in providing infrastructure.
STAGES OF TOLL ROAD PROCUREMENT
Directorate General of Highways
SOLICITED PROJECT
Indonesian Toll Road Authority
UNSOLICITED PROJECT
TOLL ROAD PLANNING
POLICY (PP-PS 11)
1
TOLL ROAD MASTER PLAN
(PP-PS 12)
2
TOLL ROAD SECTION PLAN
(PP-PS 13)
3
PROJECT PROPOSAL
1a
PROPOSAL APPROVAL
1b
Toll Road Company
Compensation for the initiator:
1.
Bonus system (10% max); or
2.
Right to Match; or
3.
Purchasing of the Project (Including Intellectual Property Right)
TOLL
TARIFF
CONCESSION
AGREEMENT
TENDER
PREPARATION
(PP-PS 24)
TENDER
(PP-PS 55-61)
FINANCING
TECHNICAL
DESIGN
(PP-PS 27)
LAND
ACQUISITION
CONSTRUCTION
(PP-PS28 + PS31)
(PP-PS 29)
4
5
6
7
8
9
OPERATION
(PP-PS36)
&
MAINTENANCE
(PP-PS53)
10
CONCESSION
TAKE OVER
11
TRANSACTION PROCESS
1. Law and Regulations :
a. Law No. 38/2004 concerning
Road
b. Government Regulation
No.15/2005 concerning Toll
Roads, as second amended by
Government Regulation No.
43/2013,
c. Presidential Regulation No.
67/2005 concerning PPP, as
secondary amended by
President regulation
No.56/2011
d. Minister of Public Works
Regulation No. 13/PRT/M/2010
concerning Guidelines for
Procurement of the Toll Road
Companies
2. Two stages of Tender :
a. Prequalification;
b. Limited tender.
3. Tender criteria :
a. The lowest initial toll rates
b. Minimum Government support
PRIVATE
SECTOR
GOVERMENT
PROJECT PREPARATION
PREPARE PQ DOCUMENT
PQ AND BID INVITATION
SUBMIT PQ DOCUMENT
PREQUALIFICATION OF
BIDDER
PREPARE BID PROPOSAL
PRE BID CONFERENCE-BID
PREPARATION
(± 14 months)
SUBMIT BID PROPOSAL &
BID BOND
SUBMISSION AND OPENING
BID
RECEIVE NOTICE AWARD
EVALUATION OF BID
PREPARE SPECIAL PURPOSE
VEHICLE
APOINTMENT OF
SUCCESFUL BIDDER
SIGN CONTRACT
PERFORMANCE BOND, LAND
ACQUISITION COST,
FINANCIAL CLOSE
CONSESSION AGREEMENT
IMPLEMENTATION OF THE AGREEMENT
(± 4-6 months)
RISK ALLOCATION
Allocation
No
Type of Risk
Government
1.
Land Acquisition
2.
Engineering Planning
3.
Toll Road Construction
4.
Operation and Maintenance
5.
Tarif Tol
6.
Volume Kendaraan
7.
Perubahan Hukum
8.
Keadaan Kahar
Toll Road Company
CONSTRAINT AND EXPECTED CONDITION OF TOLL ROAD
BUSINESS IN INDONESIA
CONSTRAINT
EXPECTED CONDITION
Land Acquisition
 No certainty on the completion of land
acquisition financed by business entity
 Financing by business entity (BLU)
 Land
acquisition
implementation
in
accordance with the Law of 2/2012 and
Presidential Regulation of 71/2012
 Financing and its implementation are
conducted by Government
Financing Facility
 Limited financing from lender (only from
bank)
 Bank financing for land acquisition with
easier requirements
 Availability of other financing institutions
apart from banking. (PT SMI/IIF)
Bidding
 Most of toll road segments that are auctioned
based on the national road network general
plan have been determined by the Minister of
Public Works
 Bidding includes land acquisition cost
 Limited financing from Government (support)
 Business entity’s initiative
 Investment cost excludes land acquisition
cost
 Bidding is carried out upon completion of
land acquisition (minimum 1 section)
Contigent
Liability
 Absence of Government guarantee to
reduce the risks
 Possibility for Government guarantee in
risk management through PT PII
PROJECT LOCATION
Port of Cirebon
National
Activity
Tol Kanci-Pejagan
Centre
CIREBON
National Activity
Centre
PKNp
BANDUNG
PANGANDARAN
RANCABUAYA
PKN
PALABUHANRATU
TPI Pelabuhan Ratu
Cisumdawu Toll Road
SEKSI I :
12,025 Km
STA -2+275
SEKSI II :
17,350 Km
SEKSI III :
STA 27+100
STA 9+750
SEKSI IV :
3,750 Km
SEKSI V :
15,900 Km
7,200 Km
STA 30+850
SEKSI VI :
4,048 Km
STA 38+050
CISUMDAWU TOLL ROAD
STA 53+950
STA 57+998
RENCANA JALAN
BEBAS HAMBATAN
CIKAPAL
RENCANA
BANDARA
INTERNASIONAL
KERTAJATI
RANCAKALONG
LEGOK
CILEUNYI
JATINANGOR
TANJUNG
SARI
KERTAJATI
SUMEDANG
PARAKAN
MUNCANG
CADAS
PANGERAN
CIMALAKA
UJUNGJAYA
KOTA
SUMEDANG
+ 60,28 Km
Ke
Project
Objectives
NAGREG
The main objectives of the Project are :
(a) To construct the alternative access transportation in Bandung to
Sumedang
(b) To reduce traffic volume in the existing road, particularly during working
days;
(c) To obtain “value for money” infrastructure investment and service
provision for GoI and relevant regional or local governments.
JALAN NASIONAL
EKSISTING
Ke
CIREBON
PROJECT OUTLINE
CILEUNYI-SUMEDANG-DAWUAN TOLL ROAD
16.671 Vehc/day
16.556 Vehc/day
16.921 Vehc/day
14.749 Vehc/day
LAND ACQUSITION (by GOVERNMENT)
LAND ACQUSITION (by JASA SARANA)
Government Portion (29,37Km)
C
O
N
S
T
Private’s Portion (30,89 Km)
R
U
C
T
I
O
N
C
O
S
T
OPERATION (BY PRIVATE )
Elements
Length
Design Speed
Number of lane
Characteristics
60,27 Km
100 Km/hr
2x2 lanes (start), 2x3 lanes (final)
Lane of width
Outer Shoulder width
3,6 m
3,0 m
Inner shoulder width
1,5 m
Median width
13 m
Note: I USD= IRD 10.000
Elements
Land Acquisition Cost
Investment Cost
FIRR
Concession Period
Toll Tariff/Km (2017)
Land Acquisition Progress
Construction Progress
(Government Portion)
Construction period
Operation (year)
Government Support
Characteristics
IDR 1.295 Billion (USD 129 Million)
IDR 12.331 Billion (USD 1.233 Million)
14,18%
35 Years
IDR 800/USD 0,08
Section I (Cileunyi – Tanjungsari) : 38,20 %, Section II (Tanjungsari-Sumedang) :
58,38%, Section III (Sumedang – Cimalaka) : 16,81%, Section IV (CimalakaLegok) : 0%, Section V (Legok – Ujung Jaya) : 0%, Section VI (Ujung Jaya –
Kertajati) : 0% Total : 28,29%
Section I (Cileunyi – Tanjungsari) : 8,06% %, Section II (Tanjungsari-Sumedang)
: 3,74% Total 5,51%
± 2 Years (2018-2019)
± 2018 (Partial)
To get FIRR 16% on 2018, it is required IDR 1.261.619 Million (USD 130,91
Million) Government Support, so that the investment cost will be IDR 7.323.928
Million (USD 759,98 Million)
PPP Structure
SBOT with Government Guarantee
National Budget
Borrowing
Rp
Government
Rp
MoPW
Rp
Contractor
Construction
Contract
Rp
Ministry of
Finance
Toll Road
Assets
Rp
Recourse Agreement
IIGF
BPJT
Concession Agreement
EQUITY
Equity
Sponsor
Rp
DEVIDEN
LOANS
Lender
• Land Acquisition Cost Partly By
Government
• Part of toll road section is
done by Government
• TRC build another section of
construction and Operate the
Toll Road for whole section
• Road Users pay the toll tariff
SERVICE
Toll Road
Company
Road Users
Rp
Rp
TOLL TARIFF
REPAYMENT
CONSTRUCTION Rp
COST
Infrastructure,
Operation &
Maintenance
Construction
Operation &
Maintenance Cost
Rp
Operation &
Maintenance
Procurement Process
1
•
•
•
•
•
Pre-Qualification (PQ) Process
PQ process will be announced in local mass media.
PQ criteria will be set out in the pre-qualification
document.
Participants who meet the requirement and eligible
criteria will be announced as shortlisted bidders and
will be invited to tender.
Should there are less than three participants, there will
be re-PQ.
Should the above condition is recurred, the tender
process will be continued by negotiation.
Tender Process
•
•
•
•
2
Participants who meet the requirement and eligible will
be announced as shortlisted bidders and will be invited
to tender.
Tender process is conducted by two methods : interest
participant with the lowest bidder or interest participant
with lower government support bidder.
Should the participant meet the requirement , he will be
the tender winner.
Should there is one tender participant , the tender
process will be conducted by negotiation.
Evaluation Criteria For PQ
Evaluation Criteria For Tender
1. Compliance with submission requirements in the
prequalification document and eligibility to participate
in Indonesian PPP Procurement;
2. Financial capacity to raise the required finance for
the Project;
3. Track record in financing, designing, constructing and
operating projects similar to this Project, particularly in
Indonesia and / or South East Asia and experience in
fulfilling PPP projects.
Tender process are evaluated using two methods :
1. Lowest tariff; tender participants with the lowest
bidder will be the tender winner.
2. Lowest government support; the tender winner are
those who could build toll road with minimum
government support.
Tender Schedule (Temporary)
July , 2015
October , 2015
October , 2015
November , 2015
PQ documents to
be made available
for collection by
interested
investors
PQ submission
•
Evaluation of
bidders
• Bidders to be
shortlisted
Announcement
of PQ results
Feb , 2016
Mar , 2016
May , 2016
July , 2016
Release of draft ITT
documents and IIGF
guarantee
documents to
shortlisted bidders
Dec , 2016
Financial
Close
Cont’d
Consultation with Release of final ITT
shortlisted bidders documents to
on draft ITT
shortlisted bidders
documents
February , 2016
ITT bid
submission
Appointment of
Preferred bidder
CA Signing
15
THANK YOU
Koentjahjo Pamboedi, Member of Board BPJT
Jl. Pattimura No. 20, Kebayoran Baru, Jakarta Selatan 12110-Indonesia
Email: koentjahjop@yahoo.com ; investasi.bpjt@gmail.com
16