Indonesia Infrastructure Finance Facility

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The objective of the Indonesia Infrastructure Finance Facility Project (IIFF) is to strengthen and further develop the institutional framework of the financial sector to facilitate financing of commercially viable infrastructure projects and thereby increase provision of private infrastructure in Indonesia. The project will have one component each from the Bank and the International Finance Corporation (IFC): an investment loan by the Bank that will be made available to the IIFF as subordinated debt to be used for eligible infrastructure projects and an equity investment by IFC in the IIFF. The Bank Group, along with other development partners involved in the project, will approve an operation manual that will form the basis for the IIFF decision-making regarding the specific projects it chooses to support and the instruments that it selects to provide such support. The Bank Group will not be involved in approving individual IIFF subprojects. However, intensive supervision will be conducted over the life of the project. The Bank's loan is expected to be fully disbursed over a four-year period (FY 2010-2013) while IFC's equity investment is expected to be fully made over five years.