Welcome to TUSK Advisory Pte Ltd

Tusk has been at the forefront of adapting successful strategies for industry as well as for country specific and global solutions. One example is our development of innovative methodologies for Public-Private Partnership (PPP) schemes.

Globally governments are adopting PPP schemes to partner with the private sector in delivering infrastructure and public services. Tusk has developed a proprietary methodology to ensure the PPP approach delivers impressive results. Tusk’s PPP Pentagram™ addresses the five components of infrastructure delivery strategies that governments must concurrently manage and execute to gain traction in the delivery of their infrastructure projects. The PPP Pentagram™ ensures projects gain traction by:

WHY THE PPP PENTAGRAM™ WORKS

Most governments around the world, even governments with substantial surplus budgets, have adopted PPP schemes as the mechanism to partner with the private sector to share the burden of delivering much-needed infrastructure and public services. Far too often, governments announce ambitious PPP infrastructure programs but see very little progress in delivery of projects. For this precise reason, Tusk has developed a proprietary methodology called PPP Pentagram™ that addresses the five universal components of infrastructure delivery strategies that governments must concurrently manage and execute to gain traction in the delivery of their infrastructure projects and programs. Governments often announce ambitious infrastructure projects and programs for private sector investment as PPPs but do nothing else. The PPP Pentagram™ is thus aimed at gaining traction by:

Enabling Governments to lead by developing and implementing supporting legislations, policies and procedures

Crafting financial products to support Infrastructure development and developing a robust pipeline of projects for investment

Adopting regulations that increase compliance and implementing governance frameworks that are simple and with "muscle"

Designing the appropriate PPP model and optimal risk sharing for each project - avoiding "one solution for all"

Building Industry capacity via series of support programs and involving and informing community early to gain buy-in

The PPP Pentagram™

The PPP Pentagram™ has produced outstanding results when all elements of the 5 components are managed concurrently by a lead agency that has fiscal muscle – i.e. under the Treasury, Ministry of Finance or similar.

The 5 components of the PPP Pentagram™ are interrelated and designed to remain dynamic to ensure better Value For Money (VFM) outcomes for government - e.g. wind down government support as the market gains confidence – but initial offers are often attractive.

Infrastructure Delivery Wheel

Tusk and its key principals have led various policy, regulatory and institutional reform strategies within Indonesia in the last decade, including in managing a number of Program Management Offices (PMO) for delivering major infrastructure and economic programs as well as in acting as transaction advisors for PPP projects. Through these hands-on experiences, Tusk has come across various implementation challenges and bottlenecks that require specific solutions. However, both the public and private sectors share little common understanding on what needs to be done to make infrastructure delivery work. Tusk has thus developed a structured strategy called Infrastructure Delivery Wheel, outlining the key implementation strategies and action plans to have a successful project delivery outcome for Indonesia.

The government and the parliament needs to lead with political courage and legislative leadership by passing an Infrastructure Law to enable comprehensive reforms for project implementation via simplified approval process, enabling long-term funding and multi year budget cycle that are beyond 5-years for the priority projects and to provide sufficient legal basis for public servants to fast track project implementation. The Law should also convert KPPIP into an IBRA like empowered agency called Strategic Infrastructure Delivery Agency (SIDA) to coordinate project delivery.

The government needs to introduce innovative funding schemes like PBAS (Performance Based Annuity Scheme) or APS (Availability Payment Scheme) and empower of infra funders like PT SMI and PT IIF to reduce the burden on state budget by long-dating its funding obligations and ensure that project feasibility are fully prepared to attract SOE and private sector investors.

Spatial planning, AMDAL, and forestry permit approvals need to be simplified and accelerated – especially for priority projects. Dire need for single map for such purposes.

The regulators in infrastructure sectors need to be empowered to manage a wider scope of authority, accelerate land acquisition through such empowerment along with BPN empower IIGF (Indonesia Infrastructure Guarantee Fund) to guarantee land acquisition within agreed period.

Ensure better governance of delivery via the conversion of the current KPPIP from a committee structure to an IBRA like Strategic Infrastructure Delivery Agency (SIDA) and embed value-for-money orientation for stakeholders involved in infrastructure delivery to support MoF’s fiscal management priorities.

Introduce efficient asset management principles in all levels of governments, and devise strong consequence management for infrastructure stakeholder performance, particularly for the regional governments' use of the decentralization fund by targeting infrastructure and other community services like health and education.

Unleash the capacity of civil servants by removing impediments and engaging them with private sector expertise through a mixed public and private sector resourced program management offices.

Government should introduce policies to support expansion of related local Industries via schemes including encouraging joint ventures with foreign contractors and investors and increase community buy-in of projects via improved consultation and socialize of the key benefits of the projects.

Infrastructure Delivery Wheel