Private Provision of Infrastructure Technical Assistance Loan

closed

The development objective of the Private Provision of Infrastructure Technical Assistance Project for Indonesia is to assist the Government in developing and implementing the policy and regulatory reforms and build the institutional and social foundations needed to enable, promote, and facilitate efficient and sustainable large-scale private investment in infrastructure. There are three main project components. The first component, Cross-sectoral technical assistance and advisory services, encompasses: Core support to the Secretariat for the Committee on Policy for the Acceleration of Infrastructure Development (KPPI Secretariat) and Planning and Investment Sub-committee; supplementary support to the KPPI Secretariat and Planning and Investment Sub-committee; and support for the establishment and initial operation of a central Public-Private Partnership (P3) unit. With the second component, the largest part of the project resources will be allocated to sector-specific activities aimed at establishing conditions conducive to sustainable private investment in infrastructure, and to developing specific opportunities for such investment. The project will focus primarily on the transport, telecommunications, and urban infrastructure sectors, and support activities involving: 1) legal and regulatory reform (drafting of sector laws and implementing regulations);2)design and establishment of regulatory institutions; 3) conduct of sector policy and strategy studies with a strong PPI focus and impact (including sector / sub-sector privatization strategy studies); 4) establishment of key sectoral "nodes" in the national P3 network; 5) preparation and tendering of pilot PPI projects; and 6) conduct and dissemination of "lessons learned" analyses for recent private infrastructure projects and privatization initiatives. The third component The project contributes to capacity building and training in areas relating to private participation in infrastructure.