The World Bank Implementation Status & Results Report Indonesia's Infrastructure Finance Development (IIFD) - RE (P157490) Indonesia's Infrastructure Finance Development (IIFD) - RE (P157490) EAST ASIA AND PACIFIC | Indonesia | Infrastructure, PPP's & Guarantees Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 8 | ARCHIVED on 08-Jan-2021 | ISR44809 | Implementing Agencies: Republic of Indonesia, Republic of Indonesia Key Dates Key Project Dates Bank Approval Date: 22-Apr-2016 Effectiveness Date: 25-Apr-2016 Planned Mid Term Review Date: 15-Feb-2021 Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2020 Revised Closing Date: 31-Dec-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Program Development Objectives (PDO) for IIFD is to assist Indonesia in closing its large public infrastructure gap by supporting the flow of private capital into infrastructure development and improving the institutional, legal and regulatory framework to enhance the ability of private capital and public institutions to work together for infrastructure Development. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Pillar 1: Strengthening Agencies:(Cost $2.34 M) Pillar 2: Legal and Regulatory Frameworks:(Cost $0.30 M) Pillar 3: Project Selection, Preparation and Transaction:(Cost $3.65 M) Pillar 4: Inter-Agency Coordination:(Cost $0.74 M) Unallocated:(Cost $1.24 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Low Low Implementation Status and Key Decisions 1. Overall, the IIFD’s implementation until FY 2020 is rated satisfactory against its PDO. The satisfactory performance is rated against the new Result Framework, agreed in the last SC meeting (September 2018). 2. The second amendment of the IIFD Grant Agreement has been completed and countersigned. As per the MOF’s request, the IIFD TF has been extended until December 2021 with an amount of USD 2.5 million. The grant amendment process was finalized and countersigned in July 2020. As mandated by the Steering Committee in September 2018, the RETF would focus on the component 3 of project selection, preparation, and transaction through technical assistance to government contracting agencies (GCA) and help the MOF’s Project Development Facility (PDF). 1/8/2021 Page 1 of 6 The World Bank Implementation Status & Results Report Indonesia's Infrastructure Finance Development (IIFD) - RE (P157490) 3. During the implementation (until December 2020), the RETF has achieved the following: i. Pillar 1 – Strengthening individual agencies. The IIFD supported the creation of the first Accredited Training Organization (ATO) of the APMG PPP Certification in Indonesia, in PT. Penjaminan Infrastruktur Indonesia (PII) with 4 accredited trainers certified by APMG international. Further on, 217 staff members of the PPP unit and other PPP relevant institutions have participated in PPP certification program at various levels (foundation, preparation and execution). In addition, the IIFD contributed to the development of a toolkit for project review and government support to support project identification and preparation. ii. Pillar 2 – Improving legal and regulatory framework. The IIFD has contributed to addressing the critical regulatory bottlenecks for PPP projects, by assisting the GOI, in enactment of (1) PMK No.9/ 2016 on Availability Payment (AP) procedures; (2) Perpres No.122 of 2016 on Priority Infrastructure Projects; and (3) PMK No. 180/ 2020 regarding PDF procedures. iii. Pillar 3 – Project selection, preparation and transaction. The PPP unit has contributed to decision-making and project preparation for 24 projects through the PDF during 2016-2020. There are an additional 13 projects in the PPP unit’s pipeline that have been supported with TA for developing their proposal documents (DPP) to access the PDF. In addition, the IIFD has contributed to good practice and standardised guidance through compilation of six sector-specific PPP manuals as guidelines for GCAs and investors, as well as document templates for RFP, RFQ and PPP agreements to standardise and expedite project preparation and transactions in these sectors. iv. Pillar 4 – Inter-agency coordination. The Memorandum of Understanding (MoU) of the PPP Joint Office has been signed in September 17, 2020. This reflects a stronger position and function of the PPP JO, as the front-line forum to coordinate PPP activities in Indonesia. 4. A donor coordination (virtual) meeting was held on December 14, 2020, with participation from 14 representatives of various donors and multilateral institutions. The meeting encouraged the use of blended and creative financing as an alternative solution for infrastructure development. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Low Low Macroeconomic Moderate Low Low Sector Strategies and Policies Moderate Low Low Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Low Low Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Substantial Stakeholders Moderate Low Low Other Low Low Low Overall Moderate Low Low Results PDO Indicators by Objectives / Outcomes Increase of private and public sector investment in infrastructure, improved financing & regulation IN00932530 1/8/2021 Page 2 of 6 The World Bank Implementation Status & Results Report Indonesia's Infrastructure Finance Development (IIFD) - RE (P157490) ►Support the Government in Private/ PPP investment in infrastructure (Water, Telecom, energy, transportation) as percent of GDP (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.59 1.03 1.05 1.09 Date 30-Sep-2014 08-May-2020 07-Dec-2020 31-Dec-2021 IN00932541 ►Amount of PPP investment in infrastructure (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 327,400,000.00 9,953,000,000.00 11,800,000,000.00 11,333,000,000.00 Date 30-Sep-2014 08-May-2020 07-Dec-2020 31-Dec-2021 Intermediate Results Indicators by Components Increase of private and public sector investment in infrastructure, improved financing & regulation IN00932542 ►Sucessfully Piloted Initial PPP Projects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 1.00 Date 30-Sep-2014 08-May-2020 07-Dec-2020 31-Dec-2020 IN00932543 Number of Competitively Tendered Project (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 12.00 Date 21-Apr-2016 08-May-2020 07-Dec-2020 31-Dec-2021 IN00932544 Number of PDF proposal document completed (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 11-Oct-2019 08-May-2020 07-Dec-2020 31-Dec-2021 IN00932545 ►Fully Functional PPP Unit Established Including Relevant Decision Making Authority for PPP Implementation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21.00 24.00 7.00 1/8/2021 Page 3 of 6 The World Bank Implementation Status & Results Report Indonesia's Infrastructure Finance Development (IIFD) - RE (P157490) Date 30-Sep-2014 08-May-2020 07-Dec-2020 31-Dec-2020 IN00932546 Development of coordination forum among PPP stakeholders and having regular meeting (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 1.00 6.00 Date 25-Apr-2016 08-May-2020 07-Dec-2020 31-Aug-2021 IN00932547 Project Ready for Bid/FS has Completed (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 12.00 12.00 12.00 Date 21-Apr-2016 08-May-2020 07-Dec-2020 31-Dec-2021 IN00932548 New 5 years infrastructure PPP program (2020-2024) focusing on certain sectors (water, urban, transport, waste management, housing, gas distribution, and health) is developed (Text, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target PPP Unit Business Plan PPP Unit Business Plan Progress for new 5 has been developed and has been developed years infrastructure Value 0.00 presented to related and presented to related PPP program is stakeholders stakeholders documented IN00932549 ►Identify and Address Critical Legal and Regulatory Bottlenecks for Infrastructure Finance and Development (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 6.00 6.00 1.00 Date 30-Sep-2014 08-May-2020 07-Dec-2020 31-Dec-2020 IN00932550 Critical regulatory bottlenecks are amended or changed (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 1.00 Date 30-Sep-2014 08-May-2020 07-Dec-2020 31-Dec-2021 IN00932551 Duration of Project Cycle From Preparation until Bid Award (Years, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 1.50 1.50 4.00 IN00932552 Strengthening regulation and national policy framework "Academic Paper to strengthen regulation framework of PPP infrastructure financing" is completed (Text, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 PPP Unit in close PPP Unit in close Academic paper is coordination with Legal coordination with Legal completed 1/8/2021 Page 4 of 6 The World Bank Implementation Status & Results Report Indonesia's Infrastructure Finance Development (IIFD) - RE (P157490) Consultant is currently in Consultant is currently the process of in the process of conducting the study of conducting the study of the Law regarding the Law regarding Infrastructure Financing Infrastructure Financing. Overall Comments IR The IIFD has contributed to the financial close of 18 PPP projects. Of these, 6 projects that have been directly supported by the IIFD through the MOF PDF facility, include: (1) Palapa Ring (west) USD 80 Million; (2) Palapa Ring (central) USD 86.67 Million; (3) Palapa Ring (east) USD 342 Million ; (4) Umbulan Water Supply USD 120 Million; (5) Bandar Lampung Water Supply USD 73.33 Million; (6) West Semarang Water Supply USD 79.33 Million; While the remaining 12 projects that have received indirect support from the IIFD are: (1) Semarang-Batang Toll Road USD 736.67 Million; (2)Pandaan-Malang Toll Road USD 398 Million; (3) Batang PLTU USD 3,780 Million; (4) Manado-Bitung Toll Road USD 341 Million; (5) Balikpapan-Samarinda Toll Road USD 664.67 Million; (6) Jakarta-Cikampek II Elevated Toll Road USD 1,093.33 Million; (7) Krian-Legundi- Bunder-Manyar Toll Road USD 608 Million; (8) Serang-Panimbang Toll Road USD 353,333,333; (9) Cileunyi Sumedang - Dawuan Toll Road USD 386.67 Million; (10) Jakarta - Cikampek South Toll Road USD 892 Million; (11) Probolinggo-Banyuwangi toll road USD 1,404.67 Million; (12) Semarang-Demak Toll Road USD 362.67 Million. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P157490 TF-A2268 Effective USD 7.40 7.40 0.00 5.46 1.94 74% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P157490 TF-A2268 Effective 22-Apr-2016 25-Apr-2016 25-Apr-2016 31-Dec-2020 31-Dec-2021 Cumulative Disbursements 1/8/2021 Page 5 of 6 The World Bank Implementation Status & Results Report Indonesia's Infrastructure Finance Development (IIFD) - RE (P157490) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 27-Jul-2020 Related Project(s) There are no related projects. 1/8/2021 Page 6 of 6