Project Preparation Facility


The Project Preparation Facility or Project Development Facility (PDF) is a facility provided by the Ministry of Finance to assist the GCA in preparing the final pre-feasibility study, tender documents, and assisting the PJPK in PPP project transactions until obtaining financing from financing institutions (financial close)

Legal basis
Minister of Finance Regulation Number 180/PMK.08/2020 concerning Facilities for Preparation and Implementation of Government Cooperation Project Transactions with Business Entities in Providing Infrastructure

Objective
Align, control and integrate the process of providing fiscal facilities by the Minister for PPP Projects in the form of Feasibility Support, Infrastructure Guarantee, and implementation of investment return schemes in the form of Service Availability Payments in a series of effective and efficient processes and build the required project documents (business case) in the preparation and/or implementation of PPP Project transactions, which is able to attract the interest and participation of business entities in the PPP Project and to support the progress of PPP implementation in the future.

Ensure the achievement of PPP project objectives to provide services to the community in accordance with the standards determined by the scope

A. Project preparation

  • Preparation of Pre-Feasibility Study and studies and/or supporting documents
  • Implementation of Market Interest Assessment
  • Updating the business plan that describes the continuity of the project from upstream to downstream
  • Preparation of studies on the potential financing needed from upstream to downstream and supporting documents/studies


B. Transaction assistance

  • Procurement of Implementing Business Entities;
  • Signing of the PPP Agreement; And
  • Obtaining financing for PPP Projects (financial close), as long as it is part of the responsibilities allocated to the GCA based on the PPP Agreement.

3. Facility Executor
The PDPPI Directorate acts as the PDF implementer. However, considering efficiency and effectiveness, the Minister of Finance can give special assignments to BUMN and/or collaborate with international institutions in implementing PDF.

4. Project Criteria
Facilities can be provided for Priority PPP Projects, Oil Refinery PPP Projects, and/or other PPP Projects by first fulfilling the following criteria:

  • For Priority PPP Projects, the GCA has prepared a Preliminary Study in accordance with statutory provisions;
  • For the Oil Refinery PPP Project and/or other PPP Projects that meet the criteria, the GCA has prepared a Preliminary Study and subsequently conducted a Public Consultation, based on the Public Consultation as mentioned above, it is known that the PPP Project in question actually provides benefits to the community and shows adequate consideration of the negative impact of the PPP Project on the interests of society;
  • GCA has formed a PPP Team consisting of parties who have adequate authority and capacity in decision making;
  • The PJPK has a business plan if the PJPK is a Director of a State-Owned Enterprise/Director of a Regional-Owned Enterprise; And
  • The GCA has prepared land acquisition documents for the PPP Project for which the Facility has requested.

5. Requirements Document
The GCA submits a Facility Application to the Minister of Finance, in this case, the Director General of Financing and Risk Management with the following conditions:


The Facility Application Letter should at least contain:

  • A brief project description (executive summary) which includes value, scope, location and benefits;
  • Statement that the project will be implemented using a PPP scheme;
  • A statement indicating that the criteria and requirements required for the project have been met;
  • Commitment to comply with all applicable laws and regulations, including the requirements necessary for providing support; And
  • Willingness to be fully responsible for the correctness of all documents, information in the form of data or figures and/or all statements regarding the PPP Project provided, made and submitted for the submission of the Facility Application.
  • The Facility Request Letter is submitted as an attachment
  • Documents showing that the criteria and/or requirements applicable to the PPP Project for which the Facility is requested have been met. The documents are as follows:
  1. For Priority PPP Projects, attach a Preliminary Study
  2. For Oil Refinery PPP Projects and/or other PPP Projects that meet the criteria, attach the following documents:
  3. Preliminary studies;
  4. Report on the results of Public Consultation;
  5. Studies containing international references on similar PPP projects that have been successful; And
  6. Specifically for the Oil Refinery PPP Project, attach documents that prove communication with international institutions.
  • Business plan if the GCA is the Director of a State-Owned Enterprise/Director of a Regional-Owned Enterprise;
  • Land acquisition plan document;
  • PPP Team determination document; And
  • GCA statement letter.
  • For projects applied for using the Service Availability Payment scheme, additional documents are required to be attached as follows:
  • Planned use of the Service Availability Payment scheme;
    • Request for preliminary confirmation;
    • Information related to fiscal capacity; And
    • Evidence of initial communication with the Regional People’s Representative Council regarding plans to use the Service Availability Payment scheme in the event that the PJPK is a Regional Government.

 

Tags