CLIENT’S SITUATION:
Our Client is a 100% State-Owned Enterprise, which was assigned to develop a 304-Km toll road consists of 4 segments in Sumatra. The Client had to prepare a robust business plan for each segment as the pre-requisite to the assignment from Government. However, main stakeholders like Ministry of SOE, Ministry of Public Works and Public Housing, and Ministry of Finance, considered that improvements on business plans were needed to secure the Government assignment.

ACTIONS:
Tusk reviewed and further refined Client’s business plans by determining key success factors in toll road investment business, assessing the assumptions rationale, proposing new project structure and financing schemes, identifying types of Government support, developing financial projection models, and presenting the economics benefits for regional and national development impacted by the toll roads development. Tusk also facilitated communication with the main stakeholders to accommodate their visions into the business plans.

RESULTS:
The approvals from main stakeholders were shown by their recommendations for the issuance of Presidential Regulation No. 100/2014, the signage of Toll Road Concession Agreement, the approval of Government Equity Injection to the Client as stipulated in State Budget Law and the approval of Government Guarantee provision.

CLIENT’S SITUATION:
PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution under the Ministry of Finance of the Republic of Indonesia, Regulation (PMK) No. 100/2009, professionally managed, with a focus on investing in commercially feasible infrastructure projects. The objective of IIF is to address a key gap in the institutional landscape for infrastructure development and finance in Indonesia – a commercially oriented entity providing fund based products such as long term financing, non fund based products such as guarantees as well as fee based services for infrastructure projects. However, there was no robust business plan developed yet as PT IIF strategy in achieving the mandate trusted to them.

ACTIONS:
Tusk Advisory was engaged by PT IIF to prepare its 5-Year Business Plan and to assist with equity sales to a private bank. This marks as the third engagement of Tusk to support institutional building of PT IIF.

RESULTS:
Tusk prepared a five-year business plan with its financial projection on the basis of recognizing the then existing financing gaps and potential business opportunities with regard to private funding of infrastructure in Indonesia. Accordingly, the Business Plan recommended an aggressive approach of funding key infrastructure projects that are backed by strong project sponsors and Tusk devised funding strategies that included mezzanine financing to enable the project sponsors to get the projects off the ground. The very first funding by PT IIF was a US$ 50 million debt to a toll road project in Java where the project sponsors included entities owned by a prominent sovereign wealth fund and a local infrastructure based private equity fund. Tusk team also assisted the preparation for equity sales transaction to a private bank.