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.

Saved in:
Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2010-12
Subjects:ACCOUNTING, ACCOUNTING PRINCIPLES, ADB, ADVISORY WORK, AMORTIZATION, AMOUNT DUE, AMOUNT OF DEBT, APPROVAL PROCESS, ARBITRATION, BALANCE SHEET, BANK ASSISTANCE, BANK DEPOSITS, BANK EXPOSURE, BANK GUARANTEE, BANK GUARANTEES, BANK LOAN, BANK LOANS, BANK MANAGEMENT, BANK POLICIES, BANKING MARKET, BENEFICIARIES, BENEFICIARY, BID, BOND, BOND INVESTORS, BOND ISSUANCE, BOND OBLIGATIONS, BONDHOLDERS, BONDS, BORROWER, BUDGETING, BUSINESS PEOPLE, CALL DATE, CAPITAL ASSETS, CAPITALIZATION, CASH FLOWS, CASH PAYMENTS, CLAIM, CLAIM PAYMENT, CLAIM PAYMENTS, COMMERCIAL BORROWING, COMMERCIAL CREDITORS, COMMERCIAL DEBT, COMMERCIAL LENDERS, COMPETITIVE BIDDING, CONCESSION, CONTINGENT LIABILITIES, CONTINGENT LIABILITY, CONTRACTUAL OBLIGATIONS, COUNTRY RISKS, COVERAGE RATIO, CREDIBILITY, CREDIT GUARANTEE, CREDIT GUARANTEES, CREDIT RATING, CREDIT RATINGS, CREDIT RISK, CREDIT RISKS, CREDIT WORTHINESS, CREDITOR, CREDITORS, CREDITWORTHINESS, DEBT, DEBT FINANCING, DEBT GUARANTEES, DEBT INSTRUMENT, DEBT INVESTMENTS, DEBT MANAGEMENT, DEBT MATURITY, DEBT SERVICE, DEBT SERVICES, DEFAULTS, DEPOSIT, DEPOSIT INSURANCE, DEPOSIT INSURANCE CORPORATION, DEVELOPING COUNTRY, DIRECT LOANS, DISBURSEMENT, DIVERSIFICATION, DONOR RESOURCES, DONOR SUPPORT, DUE DILIGENCE, ECONOMIC GROWTH, ELIGIBILITY CRITERIA, ELIGIBLE BORROWERS, ELIGIBLE LOANS, EQUITY INVESTMENTS, EQUITY INVESTORS, EQUITY STAKE, EVENT OF DEFAULT, EXCESSIVE RISKS, EXPENDITURE, EXPROPRIATION, FACE AMOUNT, FINANCES, FINANCIAL ASSISTANCE, FINANCIAL CAPACITY, FINANCIAL INFORMATION, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL MANAGEMENT, FINANCIAL POSITION, FINANCIAL REPORTING, FINANCIAL RISKS, FINANCIAL SUPPORT, FINANCIAL VIABILITY, FINANCIERS, FINANCING REQUIREMENTS, FISCAL CONSTRAINTS, FISCAL SUPPORT, FIXED INCOME, FIXED INCOME SECURITIES, FOREIGN BANKS, FOREIGN CURRENCY, FOREIGN EXCHANGE, GOOD GOVERNANCE, GOVERNANCE ISSUE, GOVERNANCE STRUCTURE, GOVERNMENT FINANCING, GOVERNMENT GUARANTEE, GOVERNMENT GUARANTEES, GOVERNMENT OBLIGATIONS, GOVERNMENT OWNERSHIP, GOVERNMENT SUBSIDIES, GOVERNMENT SUPPORT, GUARANTEE FEE, GUARANTEE FEES, GUARANTEE FUND, GUARANTEE FUNDS, GUARANTEE PAYMENTS, GUARANTEE PRODUCTS, GUARANTEE SUPPORT, GUARANTEE] PAYMENT, GUARANTOR, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE INVESTMENTS, INSTRUMENT, INSURANCE CORPORATION, INSURER, INSURERS, INTEREST PAYMENT, INTEREST PAYMENTS, INTEREST RATE, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, INTERNATIONAL FINANCIAL MARKETS, INTERNATIONAL MARKETS, INVESTMENT OPPORTUNITIES, INVESTMENT PROJECTS, ISSUANCE, ISSUANCE OF GUARANTEES, JOINT STOCK COMPANY, JUDICIAL PROCESS, JUDICIAL SYSTEM, LEASE AGREEMENT, LENDERS, LEVERAGE, LIABILITY SIDE, LIQUID ASSETS, LIQUIDITY, LIQUIDITY RISK, LIQUIDITY RISKS, LOAN, LOAN TERMS, LOCAL CURRENCY, LOCAL DEBT, LOCAL DEBT MARKETS, MARKET CONDITIONS, MATURITY, MATURITY DATE, NEGOTIATION, NONPAYMENT, OPERATING COSTS, PARTIAL CREDIT, PARTIAL GUARANTEES, PARTIAL RISK, PAYMENT OBLIGATION, PAYMENT OBLIGATIONS, POLITICAL RISK, POLITICAL RISKS, PORTFOLIO, PRESENT VALUE, PRINCIPAL PAYMENT, PRINCIPAL REPAYMENT, PRIVATE CAPITAL, PRIVATE CORPORATE DEBT, PRIVATE EQUITY, PRIVATE FINANCIAL INSTITUTIONS, PRIVATE FINANCING, PRIVATE INFRASTRUCTURE, PRIVATE INVESTMENT, PRIVATE INVESTORS, PRIVATE SECTOR DEBT, PUBLIC BORROWING, PUBLIC FINANCING, PUBLIC INVESTMENT, PUBLIC SERVICES, RATE OF RETURN, RECEIVABLES, REGULATORY FRAMEWORKS, REPAYMENT, RISK CAPITAL, RISK MANAGEMENT, RISK MANAGEMENT STRATEGIES, RISK MITIGATION, RISK OF DEBT, RISK SHARING, SALARIES, SEIZURE, SENIOR DEBT, SETTLEMENT, SHAREHOLDER, SOCIAL WELFARE, SOLVENCY, SPECIFIC DEBT, STOCKS, SUPPORT INFRASTRUCTURE, TRANSACTION, TRANSACTION COSTS, TRANSPORT, USER CHARGES, WATER SUPPLY, WORKING CAPITAL,
Online Access:http://documents.worldbank.org/curated/en/2010/12/16282722/indonesia-financial-support-public-private-partnerships
https://hdl.handle.net/10986/12586
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
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.