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Indonesian Infrastructure Financing Facility Company Project :  Indonesia :Go to Project Summary

Indonesian Infrastructure Financing Facility Company Project :  Indonesia

Timetable  |  Project Outcome  |  Implementation Progress  |  Status of Covenants

Loan Name Indonesian Infrastructure Financing Facility Company Project
Country Indonesia
Loan Number 2516
Project Number 42109- 01
Source of Funding/Amount[Approved]
Ordinary Capital Resources US$100.00  million
Thematic Classification Economic growth
Private Sector Development
Governance
Sector/Subsector Finance / Finance Sector Development
Gender Mainstreaming Category No gender elements
Description The proposed financing of IIFF supports the Government of Indonesias objective to increase the flow of private investment into infrastructure projects to a level that is 67 times the current average level.The financial projections developed for this transaction indicate that there is considerable untapped demand for long-tenor financing, however, and the lack
of this product has significantly constrained the sustained expansion of infrastructure investment in Indonesia. It is in response to this perceived demand that an institutional response,
tentatively named IIFF, was conceived in 2007. IIFF was conceptualized as a nonbanking financial institution incorporated as a limited liability company, with a target fund base of about $1 billion in 5 years from the commencement of operations and estimated to grow to about $4.4 billion by year 10. IIFF will finance commercially viable infrastructure projects in Indonesia by offering ii long-term debt denominated in local or foreign currency and by providing the intellectual capital needed to catalyze publicprivate partnerships in such projects. To help finance infrastructure projects structured as public-private partnerships (PPPs), IIFF will seek financial participation by pension funds, insurance companies, nstitutions, and new investor classes that can provide long-term sources of finance. IIFF will proactively seek, establish, and develop relationships with regional and local governments
and take on the development of projects promoted by these governments to generate fee-based income in the initial years of its operations. IIFF will be able to capitalize on its early
involvement in advising the Government and other parties in relation to developing infrastructure projects to generate funding opportunities.
Project Outcome
Outcome Progress Toward Outcome
Efficient allocation of financing to economically vaible infrastructure projects IIF is continuing to work on a pipeline of projects with ADB financing disbursed in 2013.
Implementation Progress
Outputs Status of Implementation Progress (Outputs, Activities and Issues)
IIFF operates as a financially viable infrastructure finance intitution. It leads public and private capital to finance commercially viable infrastructure projects in Indonesia
Improved long-term debt market due to increased financing of infrastructure projects
Increased equity investment in infrastructure projects in Indonesia
Growth of viable financial institutions and financial markets development
Positive externalities of the subprojects in the targeted sectors
Development of PPP projects facilitated
Institutional awareness and capacity to implement environmental, health and safety, and social issues
For closer monitoring of project activities, the project has been delegated to IRM effective 1 August 2012. SEPF conducted a review mission in late July and obtained a more detailed update of the loan disbursement schedule. ADB financing has been disbursed at 94.6% to finance the IIF projects in the pipeline.
The project has been extended to 2014 to allow the remaining disbursement. The remaining disbursement is expected to occur in Q4 2014 upon DIPA approval by the Parliament.
Geographical Location Indonesia
Safeguard Categories Safeguard Categories explained (Launches new browser window)
  Environment FI
  Resettlement A
  Indigenous People A
Responsible ADB Officer Rabin Hattari
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector, & Trade Division, SERD
Timetable
Concept Clearance 13 Mar 2008
Fact-finding 10 Jul 2008 to 23 Jul 2008
Appraisal 22 Sep 2008 to 26 Sep 2008
Board Approval 31 Mar 2009
CLOSING
Loan No. Approval Signing Effectivity Original Revised Actual
2516-INO 31 Mar 09 20 Jan 10 25 Apr 11 31 Dec 13 - -

Financing Plan Top Loan Utilization
  TOTAL ( Amount in US$ million)
Project Cost 100.00
ADB 100.00
Counterpart 0.00
Cofinancing 0.00
Date ADB OTHERS Net Percentage
Cumulative Contract Awards
30 Mar 2015 0.000 0%
Cumulative Disbursements
30 Mar 2015 99.482 100%
Top Status of Covenants
Category Sector Social Financial Economic Others Safe
Rating Satisfactory
2008 Asian Development Bank

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