Indonesia Infrastructure Guarantee Fund Project

closed

The development objective is to strengthen the Indonesia Infrastructure Guarantee Fund (IIGF) Project as a single window institution to appraise infrastructure Public Private Partnership (PPP) projects requiring government guarantees. There are two components to the project. The first component of the project is Word Bank (WB)-Supported IIGF Guarantees. The Project will provide US$25 million to support IIGF in issuing its own IIGF guarantees for qualifying projects. Qualifying projects will be those which are apprised by the WB and meet WB policies as well as other reputational risk considerations. In order to prevent the mingling of this $25 million with IIGF capital, the WB loan proceeds under component one will be disbursed at the time a claim is properly made and assessed as payable by IIGF with respect to an IIGF guarantee for a WB-Supported IIGF-project. The second component of the project is technical assistance (TA). The Project will provide a loan for TA in the amount of approximately $4.6 million to develop IIGF's institutional capacity to: screen, appraise and supervise IIGF-projects as a single window for all government guarantees for infrastructure PPPs in Indonesia; manage its operations; build capacity in Contracting Agencies (CAs), sponsors and other relevant parties; develop standardized documents and procedures for contracting agencies, sponsors and other relevant parties to use in preparing PPP projects and require the use of such documents and procedures in order for PPP projects to receive IIGF guarantees; and support PPP preparation activities, including feasibility studies, transaction advisory support and other activities.