A LEADING CATALYST IN FACILITATING INDONESIA S INFRASTRUCTURE DEVELOPMENT Financing Possibilities for PV Power Plant Project in Indonesia Jakarta, 5 May 2014 Edwin Syahruzad Head of Financing & Investment PT Sarana Multi Infrastruktur (Persero) GIZ EKONID Business Forum 1
PT Sarana Multi Infrastruktur (Persero) Who we are Our services PT Sarana Multi Infrastruktur (Persero) ( SMI ) was established on February 26, 2009 with a purpose to become a catalyst for accelerating infrastructure development in Indonesia Ownership : 100% owned by the Government of Indonesia Vision: A leading catalyst in the acceleration of the National Infrastructure Development Program Mission: 1. To become a strategic partner to the government in promoting and accelerating infrastructure development in Indonesia. 2. To establish synergy with third parties, e.g. private institutions, banking sector, local government, stateowned enterprises, or multilateral organizations in order to increase the capacity of infrastructure fund 1 2 3 We provide Commercial Financing Promoter Funding Take Out Financing Working Capital Loan Senior Term Loan Subordinated Loan Mezzanine We provide Advisory Services Equity Refinancing Bridge Loan Financial & Investment Advisory Services Transaction Advisory Services Training & Capacity Building We provide PPP Project Preparation Services Project Development Financing Advisory to Contracting/ Tendering Agencies Limited Capacity Building 2
PT Sarana Multi Infrastruktur (Persero) Our focus sectors Our three business pillars Water Supply Toll Road & Bridges Vision: A leading catalyst in the acceleration of the National Infrastructure Development Program Transportation Oil & Gas Telecommunications Waste Water & Waste Management 1 2 3 Commercial Financing Flexible financing Complementary to banks Syndication Loan or club deal arrangement Advisory Financial & Investment Advisory Services Transaction Advisory Services Training & Capacity Building Project Preparation Project Development Financing Advisory to contracting/ tendering agencies Limited capacity building Electricity Irrigation & Waterway 3
SMI Financing Commitment Trend Overtime Total Project Cost has been financed is IDR 39 Trilion 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 (IDR Billion) Financing performance, 2009 YTD March 2014 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - - 49 376 Outstanding Commitment (IDR Billion) 125 2,079 175 400 1,287 525 1,158 17,993 1,196 17,165 500 2,221 3,086 39,399 2009 2010 2011 2012 2013 2014 Total Project Cost 4,477 4,502 3,298 2009 2010 2011 2012 2013 YTD March 2014 Telecommunication 12% Transportation 15% Sector Portfolio Oil and Gas 12% Electricity 38% Road 11% Water Supply 10% Irrigation & Waterway 2%
PT SMI Cooperations in Developing Indonesia Infrastructure Co-Financing Project Preparation Industrial Decisions Inc (IDI) As a Mezzanine Investor of Lubuk Gadang Mini Hydro Power Plan ANZ Panin Bank As a cofinance partner of LPG terminal project at Semarang Port, Central Java BCA (MLA), BCA, Bank DKI, ICBC, Panin & BJB (LU) Financing Syndication for construction Cilkampek-Palimanan Toll Road CDIA Mode of transportation developmnet cooperation in Surabaya & partner for GCA TA ADB - Bappenas Providing assistance for Municipal Solid Waste Management Project in Batam with ADB- Bappenas Singapore Cooperation Enterprise Capacity Building cooperation and project preparation assistance for PPP Maybank Shariah As a cofinance partner of FSO(Floating Storage Offloading) terminal project in Natuna Island, Riau Islands UOB Bank As a cofinance partner of Mini Hydro Power Plant Project in Bengkulu Standard Chartered Bank As a cofinance partner of power plant & FPSO (Floating Production & Storage Offloading) project BP Batam Accelerating infrastructure development cooperation in trading area & Batam Bintan Karimun (BBK) port UNDP Scooping cooperation for developing renewable energy projects (e,g: wind power project) Kalimantan Railways Pte. Cooperation of coal railway construction in East Kalimantan Capital Market/ Infra Fund Management/ Other Cooperation IDX Establishing SMinfra18 index consisting of 18 infrastructure stocks IFC Study of the development of infrastructure financing instruments through longterm capital market JBIC Financing of Green Infrastructure Program MCA Indonesia Infrastructure Financing for Green Prosperity Programme Bank of Tokyo Mitsubishi UFJ Capacity building cooperation and project infrastructure financing PPP Development Center Russia Capacity building cooperation and sharing knowledge & information 5
Introduction to PV Project Finance
Parties Involved
Project Financing : Time Frame
Project Financing : Financial Parameter
Project Financing : Equity Potential Investors
Project Financing : Maximum Debt Capacity
Project Financing : Requirements
Project Financing : Risks
Special Notes To PV Project Finance Financing is a Challenge in New Market Lack of empirical evidence Specialist Analysts in Banks are initially lacking Currency and Country Specific Risks are often higher Local Investors also lack of expertise initially Equity Ratio needs to be higher than common practice Developers are often under capitalized or under estimating complexities Sound Assistance and Advice can improve chances of success
THANK YOU FOR YOUR KIND ATTENTION Disclaimer All information presented were taken from multiple sources and considered as true by the time they were written to the knowledge of PT Sarana Multi Infrastruktur (Persero). PT Sarana Multi Infrastruktur (Persero) can not be held responsible from any inacuracy contained in the material. PT SMI follows all internal and external guidelines and regulations that govern the evaluation process on determining the financing feasibility of an infrastructure project. Every decision to finance or not to finance a project is therefore based on a responsible and thorough due diligence process. Any complaint in the process of financing irregularities can be submitted to: Ms. Astried Swastika Corporate Secretary PT SMI Tel : +62 21 5785 1499 Fax : +62 21 5785 4298 Email : corporatesecretary@ptsmi.co.id Public complaints on PT SMI service will be kept strictly confidential and handled by a special committee to ensure that complaints are addressed appropriately. 15