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 a...

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2013
Subjects:
ADB
BID
Online Access:http://documents.worldbank.org/curated/en/2010/12/16282722/indonesia-financial-support-public-private-partnerships
http://hdl.handle.net/10986/12586
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.