Our Experience
CLIENT’S SITUATION:
Our Client is a 100% State-Owned Enterprise, which was assigned to develop a 304-Km toll consists of 4 segments in Sumatra. However, the discussion among stakeholders to secure the assignment through the issuance of a Presidential Regulation was a deadlock for 2 years.
ACTIONS:
Tusk reviewed and refined the business plans that the Client had previously prepared by further determining the key success factors in toll road investment business, identifying types of Government support needed to develop a non-financially viable toll road project, preparing legal study and facilitating stakeholder coordination to pursue the stipulation of Presidential Regulation and State Budget Law to secure legally the Government assignment and Government support to our Client.
RESULTS:
As a result of our support, Government finally issued Presidential Regulation No. 100/2014 to legally assign our Client to develop the 304-Km toll road. The signage of Toll Road Concession Agreement between Toll Road Regulatory Agency (BPJT) and our Client was based on the business plan that Tusk developed. Government and Parliament approved our proposal to provide Government support in the form of equity injection to our Client as much as 42% of the investment value. Lastly, 6 Ministers and 4 Governors agreed to sign a Service Level Agreement as their commitments to support and accelerate the toll road development.
CLIENT’S SITUATION:
The client was Indonesian Coordinating Ministry of Economic Affairs (CMEA), with a mandate to accelerate infrastructure delivery in Indonesia. To alleviate traffic and increase mobility in Jakarta, CMEA coordinated the project implementation of Mass Rapid Transit (MRT) Jakarta. As a flagship project under Metropolitan Priority Area (MPA) program, MRT Jakarta North – South Corridor Phase I will be developed from Lebak Bulus to Bundaran Hotel Indonesia, with a target to be completed in 2018, while the next phase will extend the route to Kampung Bandan. The project faced several bottlenecks that hindered project completion, ranging from funding disbursement mechanism to land acquisition issues.
ACTIONS:
Tusk Advisory assessed the project preparation process and identified critical bottlenecks hindering the project completion. Robust analysis was developed for each bottleneck, including analysis of related regulations, recommended policy or process intervention required by CMEA, and formulation of strategy to implement the solution. Tusk also assisted CMEA in coordinating and communicating with related stakeholders, ranging from Line Ministries, Regional Governments, and Regional Owned Enterprises. In addition, Tusk created supporting tools to assist CMEA in monitoring the project completion performance as well as to ensure schedule is met.
RESULTS:
As the result of the debottlenecking strategies, CMEA was able to devise a specific policy to ease the on-lending and on-granting disbursement process as well as to ensure Government-to-Government loan agreement signed in timely manner. Moreover, Tusk also successfully executed strategies to accelerate land acquisition process in two critical lands for depot development in Lebak Bulus area, resulting in budget savings from potential penalties due to project delays. This support continues as Tusk monitors the project implementation to ensure target is completed in timely manner.
CLIENT’S SITUATION:
The client was Indonesian Coordinating Ministry of Economic Affairs (CMEA), with a mandate to accelerate infrastructure delivery in Indonesia. To fulfill electricity demand in highly populated Java Island, CMEA was required to ensure proper delivery of Java-Sumatra HVDC (High Voltage Direct Current) Interconnection System infrastructure along Sumatra and Java Islands. The Transmission (USD 2 Billion), executed under Metropolitan Priority Area (MPA) program, was designed to connect 3000 MW power produced by three mine mouth coal-fired power plants in Sumatra Island to reinforce Java power system. The project faced several bottlenecks that hindered project completion, ranging from funding source to land acquisition issues.
ACTIONS:
Tusk Advisory assessed the project preparation process and identified critical bottlenecks hindering the project completion. Robust analysis was developed for each bottleneck, including analysis of related regulations, recommended policy or process intervention required by CMEA, and formulation of strategy to implement the solution. Tusk also assisted CMEA in coordinating and communicating with related stakeholders, ranging from Line Ministries, Regional Governments, and State Owned Enterprises. In addition, Tusk created supporting tools to assist CMEA in monitoring the project completion performance as well as to ensure debottlenecking schedule synchronizes with power plants construction.
RESULTS:
As the result of the strategies implementation, funding source was secured for all construction phases, enabling the continuation of project procurement process. Moreover, through intensive coordination and negotiation, the bottleneck for land acquisition of Converter Station in Sumatera was resolved, resulting on Memorandum of Understanding (MoU) signing between two related parties and thus enabling the project to reach the Ground Breaking in October 2014, in line with the target schedule.
CLIENT’S SITUATION:
In 2010, Government of Indonesia established Metropolitan Priority Area (MPA) for Investment and Industry in JABODETABEK (Jakarta, Bogor, Depok, Tangerang and Bekasi) to transform the area to be more attractive and suitable for direct investment and industrial development by accelerating infrastructure development and creating a top-level investment climate in the ASEAN region. In achieving these, GOI via Coordinating Ministry of Economic Affairs (CMEA) needs implementation support to deliver infrastructure projects and facilitate problem resolution on the ground.
ACTIONS:
Tusk supports the acceleration of MPA projects through technical assistance, and includes components of strategic planning and hands-on implementation support. Throughout the assistance process, it was evident that strategic planning is needed to produce debottlenecking action plans, while implementation support is essential to ensure the delivery of debottlenecking efforts and successful project coordination for MPA. As part of the implementation support, Tusk also codified the process to ensure that all important aspects of project acceleration are well captured for future replication. In parallel, Tusk closely involved key stakeholders during the strategy-making process and debottlenecking efforts.
RESULTS:
Tusk’s assistance to MPA program has resulted in the facilitation of problem resolution for port and oil&gas conflict as well as supporting the road and railway alignment determination for the development of a seaport project; analysis on the overall air transportation system for Jakarta and its surrounding in relation to the development of a new international airport; accelerated process of land acquisition and funding resolution for the construction of Java-Sumatra interconnection transmission line; managing project and funding preparation for the development of the sewerage system in Jakarta; as well as streamlining the funding arrangement and land acquisition process for Mass Rapid Transit (MRT) Jakarta. The program assistance for CMEA is still ongoing in keeping with the dynamic natures of infrastructure projects.