Database IRS Internal Revenue Service PSR Public Sector Reform LGSS Local Government Service Secretariat PSRS Public Sector Reform Secretariat MAB Ministerial Advisory Board RFP Request For Proposals MDAs Ministries, Departments and Agencies SEC State Enterprises Commission MESW Ministry of Employment and Social Welfare SOE State Owned Enterprise MKRAs Ministerial Key Results Areas SPS Single Pay Spine MOF Ministry of Finance UKP4 Indonesia’s Presidential Working Unit for Supervision and Management of Development MOFA Ministry of Food and Agriculture VGF Viability Gap Facility MOFEP Ministry of Finance and Economic Planning VRA Volta River Authority
Table 3: Models of private sector participation Type of model Description Level of risk assumed by the private sector Typical length of contract (years) Source of capital investment Asset ownership Most common sectors in developing countries Service contract Contract for support services Low 1-3 Public Public Water utilities Railways Broad definition of PPPs Management contract Management contract for part or whole of the operation Low/ medium 2-5 Public Public Water utilities Lease contract Contract for management of operations and infrastructure renewal Medium 10-15 Public Public Water sector Narrow definition of PPPs contract Contract for investment in and operation of a specific component of the infrastructure or service High Varies Private Public/ private Energy sector Highways Sanitation Desalination Concession Contract for financing, operations and execution of specific investments High 25-30 Private Public/ private Airports/ports/ rail Divestiture/ privatization Contract which transfers ownership of public sector infrastructure to the private sector Complete Indefinite Private Private Telecoms Source: Developed from (H.K.Yong, 2010, Table 3.4, p.20)
Table : Illustrative metrics to monitor the delivery chain for PPP Initiatives in support of job creation: 2010-2013 MDA Task/ Function Some Illustrative Metrics Timing of activities MOFEP On I. Policy, Laws and Institutional Arrangements (PLIA) Prepare PPP Policy Prepare PPP Law Institutional Arrangements in place Selection of Prospective PPP projects Establish Regulations Cabinet Approval Legislation passed by Parliament Establishment of core team in MOFEP and formalization of a (MDA) PPP Committee – approved by Minister of Finance/Cabinet respectively Three First-Mover PPP initiatives approved by Minister of Finance in consultation with relevant Line Ministry Approved per authorizing power set out in the Law December, 2010 June, 2011 January, 2011 January 2011 December 2011 MDA (Agriculture, Transport\GPHA, Energy) With Support from MOFEP On I. Investment Appraisal and Value for Money (IA & VfM) And II. Project Structuring and Commercial Close (PS & CC) Establishment of Full time PPP Project Delivery Teams in each Sponsoring MDA Preparation of Upstream Assessment Work of First Mover PPPs Preparation of Transaction Advisory Request for Proposals (RFP) Recruitment of Transaction Advisors Market Placement Commercial Close Team composition finalized with MDA Ministerial approval Investment Appraisal and VfM Assessments completed Expression of Interest (EOI) Issued RFP Issued Roadshows completed, Project Structuring documents prepared Sponsor Selected March 2011 July 2011 September 2011 January 2012 January 2013 June 2013 MOFEP and Central Bank on Financial Products and Arrangements for Financial Close (FC) Viability Gap Facility (VGF) Arrangements established Viability Gap 3-year envelope established Guarantee Policy and risk mitigation enhancements established System in place to assess and monitor contingent liabilities VGF Implementation Arrangements approved by Cabinet; VGF mechanism and allocation announced in Budget Call Letter Guarantee Policy Approved by Cabinet and PPP Financing Facility Structured Contingent Liability Management System operational June 2011 July 2011 December 2011 July 2012 Departmental