Indonesia - Financial Support for Public Private Partnerships : Guarantee Fund and World Bank Assistance
The Government of Indonesia has expressed interest in the World Bank's help in determining the best options for financing mechanisms to support public-private partnership (PPP) development. The Government would like to explore wholesale-type approaches via the establishment of a guarantee fund with financial support from the Bank and other multilateral institutions. This note discusses how the guarantee fund and the Bank's support will best work, presentation of options, how this concept relates to the current work on risk management strategies, and relevant international experience. After describing the background behind Indonesia s need for a guarantee fund, the report goes over possible steps in establishing a fund, and compares other governments experiences. Next, the concept of a government-sponsored guarantee fund is defined, along with its risks and benefits. The World Bank can provide advisory and financial support in the establishment of the guarantee fund. The last section describes the next steps to be taken by the government of Indonesia.
Summary: | The Government of Indonesia has
expressed interest in the World Bank's help in
determining the best options for financing mechanisms to
support public-private partnership (PPP) development. The
Government would like to explore wholesale-type approaches
via the establishment of a guarantee fund with financial
support from the Bank and other multilateral institutions.
This note discusses how the guarantee fund and the
Bank's support will best work, presentation of options,
how this concept relates to the current work on risk
management strategies, and relevant international
experience. After describing the background behind
Indonesia s need for a guarantee fund, the report goes over
possible steps in establishing a fund, and compares other
governments experiences. Next, the concept of a
government-sponsored guarantee fund is defined, along with
its risks and benefits. The World Bank can provide advisory
and financial support in the establishment of the guarantee
fund. The last section describes the next steps to be taken
by the government of Indonesia. |
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