CLIENT’S SITUATION:
The Puruk Cahu – Bangkuang Railway Project (“CK Project”) is an integrated coal transportation project that consists of 185 km coal railway from Puruk Cahu to Bangkuang, barge for 175 km river way from Bangkuang to Batanjung/Lupak Dalam, and seaport at Batanjung/Lupak Dalam. The CK Project is PPP (Public Private Partnership) project on a BOOT (Build-Operate-Own and-Transfer) basis with 35 years of concession period.

ACTIONS:
1. Pre Feasibility Study Development
Tusk developed pre-feasibility study of the project, which includes technical, regulatory and institutional, land and environmental, financial, and economic analysis. Tusk recommended the most optimum PPP structure to be implemented in the project.

2. Risk Assessment Framework Development
In addition to the pre-feasibility, Tusk also developed risk assessment report for the project. Tusk developed full-blown framework which includes risk identification, risk assessment, risk response strategies up to risk matrix establishment.

3. Transaction Advisory Support
After the development of the Pre-FS, the client requested Tusk to continue the support by acting as the Transaction Advisor. Tusk developed the Pre-Qualification (PQ) document and submitted to project owner.

RESULTS:
It was reported that the China Railway Consortium Group Ltd had won the $5.5 billion tender which provided the consortium with four years to build the railway and 50 years to operate it. The consortium was expected to build the railway along with a seaport and supporting facilities.

CLIENT’S SITUATION:
Semarang city has a low clean water coverage ratio, especially in the western area of the city. The city government plans to build a new Water Treatment Facility (WTP) and clean water distribution system in West Semarang to supply approximately 60,000 households in the area. West Semarang city government plans to implement PPP scheme in the project to enhance the service quality of the WTP and clean water distribution.

ACTIONS:
Tusk was assigned to develop the pre-feasibility study, which includes technical, regulatory and institutional, land and environmental, financial, and economic analyses. Tusk team recommended the use of BOT+ scheme as the most optimum PPP structure to be implemented in the project, where SPV is responsible for the construction and operation of WTP, as well as construction of primary and secondary pipeline. The scheme also features the use of Availability Payment scheme from local government and Viability Gap Funding (VGF) from central government.

RESULTS:
The pre-feasibility study and recommended PPP structure have been adopted by the transaction advisor for market consultation, tender document preparation, VGF and availability payment application, government guarantee negotiation, and other preparation related to PPP scheme implementation. The project is expected to be tendered in Q3 2015.