Project profile — Accelerating Sustainable Public-Private Investment for Infrastructure Renewal (ASPIRE)

• Indonesia (100.00%)

• Water And Sanitation: Water sector policy and administrative management (14010) (20.00%)
• Transport And Storage: Transport policy and administrative management (21010) (40.00%)
• Energy Generation, Distribution And Efficiency - General: Energy policy and administrative management (23110) (20.00%)
• Banking And Financial Services: Financial policy and administrative management (24010) (10.00%)
• Business And Other Services: Business support services and institutions (25010) (10.00%)

• Gender equality (not targeted)
• Environmental sustainability (cross-cutting) (not targeted)
• Participatory development and good governance (not targeted)
• Trade development (not targeted)
• Biodiversity (not targeted)
• Climate change mitigation (not targeted)
• Climate Change Adaptation (not targeted)
• Urban issues (not targeted)
• Desertification (not targeted)
• Children's issues (not targeted)
• Youth Issues (not targeted)
• Indigenous Issues (not targeted)
• Disability (not targeted)
• ICT as a tool for development (not targeted)

This initiative aims to facilitate the preparation and structuring of bankable Public Private Partnership (PPP) projects to increase investment in infrastructure to support sustainable economic growth in Indonesia. The project includes two interrelated components. The first aims to establish and operationalize a PPP Centre to act as the country's lead agency in PPP project development. The second provides critical complementary support to develop a strong PPP project pipeline, lay the legal and regulatory framework for PPPs in infrastructure, and catalyze early bankable PPP projects. These early investments are intended to demonstrate the value of the PPPs in addressing sustainable infrastructure for poverty reduction and increased access to markets, with an emphasis on the transportation sector, an area of strong Canadian expertise. The project also allows the Indonesia PPP Centre to receive support from the APEC PPP Expert Advisory Panel and to guide the development of PPPs projects in Asia.

The expected intermediate outcomes for this project include: (i) a functional PPP Centre within the Government of Indonesia and APEC PPP Expert Advisory Panel best practices adopted; (ii) increased effectiveness of the Government of Indonesia to identify, screen, prepare and tender bankable PPP projects; and (iii) improved investment climate for infrastructure development.

Results achieved as of march 2018 through the support of the Government of Canada for projects P00905-001 and P000905-003 include: (1) better preparation of specific Public Private Partnership (PPP) projects, through support provided to the cities of Pekanbaru and West Semarang for water supply projects, and to the city of Medan for a light rail project; (2) workshops were conducted in different regions of Indonesia to build knowledge and capacity of local government partners on PPP mechanisms and framework; (3) key PPP stakeholders, including the Ministry of Finance and the National Development Planning Agency (BAPPENAS), a number of local government representatives and general contracting agents were provided training on: Project Preparation and Procurement in Toronto, Project Finance Techniques in Washington, internships at the Philippines PPP Center, as well as a workshop on Availability Payment Scheme; (4) support was provided on the legal regulatory reviews for improvement of PPP legal framework and environment; (5) support was provided to BAPPENAS and the Ministry of Finance to better equip them to facilitate the preparation of PPP projects; (6) support was provided to BAPPENAS to help them improve PPP project planning and develop a framework to select and prioritize projects; (7) general contracting authorities are better equipped to use various PPP mechanisms, as support was provided to the Toll Road Management Agency (BPJT) to be able to better manage an Availability Payment Scheme tender process; (8) Canada's best practices in Pension Fund Governance and Investment were shared; and (9) a platform was established for elevating key reform agendas, including those pertaining to legal and regulatory issues, the PPP framework, capital markets and the intersection between state-owned enterprises and private sector development of infrastructure through the support provided in the Infrastructure Sector Assessment Program (InfraSAP).

• Proactive disclosure
• Related activities:
• Accelerating Sustainable Public-Private Investment for Infrastructure Renewal (ASPIRE)
• Accelerating Sustainable Public-Private Investment for Infrastructure Renewal (ASPIRE) - Monitoring