Indonesia - Private Provision Of Infrastructure Technical Assistance Loan

 ICRR 13157 Report Number : ICRR13157 IEG ICR Review Independent Evaluation Group 1. Project Data: Date Posted : 02/16/2010 PROJ ID : P076271 Appraisal Actual Project Name : Private Provision Of US$M ): Project Costs (US$M): 17.10 13.02 Infrastructure Technical Assistance Loan Country : Indonesia Loan /Credit (US$M Loan/ ): US$M): 17.10 13.02 Sector Board : FPD US$M ): Cofinancing (US$M): Sector (s): General public administration sector (50%) General transportation sector (15%) General water sanitation and flood protection sector (15%) Telecommunications (15%) General energy sector (5%) Theme (s): Regulation and competition policy (29% - P) Infrastructure services for private sector development (29% - P) Decentralization (14% - S) Legal institutions for a market economy (14% - S) Participation and civic engagement (14% - S) L/C Number : L4696 Board Approval Date : 05/22/2003 Partners involved : Closing Date : 12/31/2006 12/31/2008 Evaluator : Panel Reviewer : Group Manager : Group : Kris Hallberg Roy Gilbert IEGSE ICR Reviews IEGSE 2. Project Objectives and Components: a. Objectives: According to both the PAD and the Loan Agreement (LA), the objective of the Private Provision of Infrastructure Technical Assistance (PPITA) Project was to assist the Government of Indonesia (GOI) develop and implement 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 . The activities supported by the project were designed to enhance the bankability of infrastructure projects proposed for private financing. Specifically, it was envisaged the project would support the formulation of policies governing public support for private infrastructure projects -– i.e., public-private partnerships (PPPs). (Note that the TTL clarified that PPPs can be 100 percent financed by the private sector, as often occurs in the telecommunications sector .) In addition to PPPs, the PAD also refers to the closely -related concepts of Private Participation in Infrastructure (PPI) and Private Sector Participation (PSP) in infrastructure. To avoid confusion, the term "PPI" is used throughout this ICR Review. The list of key performance indicators and targets differs somewhat between the PAD and the LA . The most significant discrepancy is that the LA sets a target for the number of private infrastructure transactions prepared and tendered (seven), while the PAD does not give a numerical target (“Soundly conceived PPI schemes have been developed and tendered through transparent processes