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 Pra-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.