SDG INDONESIA ONE Blended Finance Platform Fakhrul Aufa Team - - PowerPoint PPT Presentation
Presentation Material Public-Private Solution Sandbox: SDG INDONESIA ONE Blended Finance Platform Fakhrul Aufa Team Leader Business Development and Strategic Partnership PT SMI (Persero) - Indonesia AVPN Virtual Conference 2020 Jakarta
Fakhrul Aufa Team Leader Business Development and Strategic Partnership PT SMI (Persero) - Indonesia
Proven Track Record as Financial Institution Unique Municipal Financing Product to Support Regional Development Trustworthy Institution with Strong Support From The Government & International Strategic Partners (Donor, Philanthropist, Climate Fund, Development Bank, Institutional Investor) National Strategic Partner in channeling grant, soft loans, technical assistance, and capacity building Providing End to End solution by having 3 Business Pillars to support SDG & Climate Resilience Creating Innovative Product to Close The Gap
PT Sarana Multi Infrastruktur (Persero) | 2
Vision of PT SMI to become “The Lead Catalyst for Acceleration of National Infrastructure Development”
Ecosystem Enabler
Strengthening the ecosystem of development financing supported by policies and regulations and industry knowledge
Development Partner
Become a development partner that strengthens the capacity and capability of government stakeholders
Market Maker
Participate in filling the financing gap development sector and create a crowding in effect
LEAD CATALYST FOR ACCELERATION OF NATIONAL INFRASTRUCTURE DEVELOPMENT
Sustainable Development Promoter
Support the creation of sustainable development Ecosystem Enabler
Sustainability
Promoter
Development
Partner Market Maker
PT Sarana Multi Infrastruktur (Persero) | 3
Blended finance is “the strategic use of development finance for the mobilization of additional finance towards sustainable development in developing countries“ (OECD)*
Mobilize private investments to tackle sustainability issues (poverty, climate change, infrastructure, etc.)
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Increase access of financial resources to finance development
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Reducing fiscal burden to support SDG related projects
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Gain access to rapidly growing markets in Indonesia Take advantage of the risk mitigation measures offered by blended finance Mitigate exposures and accelerate implementation by engaging PT SMI as a local strategic partner Leverage financing capacity and the socio-economic
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Public Private/Donor/Philanthropist
*Source: OECD Principle of Blended Finance
PT Sarana Multi Infrastruktur (Persero) | 4
Investor Contributions Product Donor (Philanthropist) and Impact/Climate Funds
Donor, Impact/Climate Funds and Development Banks Commercial Banks and Institutional Investors
Institutional Investor and Developer
Equity, Equity-Linked Investment
SDG Equity Fund
Grant (Project Preparation, Technical Assistance, Research)
SDG Development Facilities SDG De-Risking Facilities
Concessional Loan, First- Loss Facility, Interest Subsidy, Guarantee Premium Subsidy, VGF etc.
SDG Financing Facilities
Senior Loan, Subordinated Loan
SDG Indonesia One (Managed by PT SMI)
Contributions: Grant, Technical Assistance Contributions: Concessional Loan, Grant Contributions: Loan, Bond, Sukuk Contributions: Equity
SDG Projects
Objective: Pre-construction project development support Objective: Project de-risking (improving bankability) Objective: Construction / post- construction finance Objective: Investment in high impact / new frontier SDG sector
PT Sarana Multi Infrastruktur (Persero) | 5
As of June 2020
SDG Indonesia One Commitment
partners USD
3.03
Billion
SDG Indonesia One Achievements
SDG Indonesia One Commitment
Based on sector and no of program
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Rehabilitation and Reconstruction Program after Natural Disaster In Central Sulawsi RIDF Financing for RSUD & RSK Mata North Sulawesi RIDF Financing for Traditional Market Banjar Baru City Developing Project Concept Solar PV Rooftop in West Java Technical Assistance FS PJU (“public street lighting”) Project Bengkulu Technical Assistance FS W-t-E Plant Putri Cempo Solo
SDG Indonesia One Impacts
for the enew able energy pow er plants w ith the potential saving of ±1.5 M / year;
±5.867 tCO2e p/ year
4 schools w ith 31
classes for 716 students
101 temporary shelters & 218 permananet shelters
for 1.430 families (5.780 people) An increase in market area 15.400 m2 and 172 kiosk;
1 w orship place
Activities SDG Center with University = 3
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Activities with SIO Partners = 10
Renewable Energy Perumahan Umum Education
550 beds and total
area of hospital ±47.535 m2
2.000 families
get access to clean w ater Waste management potential ±365.000 ton / year Social Infrastructures 3 1 10 1 8 8 1 2 1 1 1 1 0% 20% 40% 60% 80% 100% Equity Financing Technical Assistance De-risking Grant Potential Project Multifacilities
Multisectors
*) Based on USD currency exchange as June 2020
Green Water Health Social Infrastructure
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Facilities for Anutapura Local Hospital Installation of clean water treatment plant
Example of SDG Indonesia One (Development Facilities):
Reconstruction and Rehabilitation in Vulnerable Communities and Disaster Areas: Palu, Sigi and Donggala, Central Sulawesi Province
Combination of Government and Private Funds with the Blended Finance Scheme can be used for Infrastructure Development in Disaster Areas
Construction of Temporary Settlement
Structure and Cooperation Scheme
Government Budget Donor/Philanthropist
Cooperation Agreement AnutapuraPalu City Public Hospital School Reconstruction
MA Alkhairaat BatusuyuGo’o- SD Alkhairaat Tondo – MTs Nurul Khasanah Pengawu
Housing
(Temporary Shelters & Permanent Housing)
Clean Water Treatment Plant Mosque Reconstruction
Masjid Babul Khairaat MTs Alkhairaat Baluase
Special Allocation Fund Expenditures for medical devices City of Palu Project Reconstruction
Social Infrastructure Reconstruction
±4,608 people and 300 university students
Providing reconstruction of 4 schools with 31 classes for 716 students Providing clear water with the capacity of 10liters/second for serving 2,000 household.
Impacts
Providing 100 Patient Beds, Eye Polyclinic Device (Autorefractometer), Dental Unit, Air Conditioners, Genset and Electrical Network, as well as
7 Renewable Energy Power Plants
Technical Assistance for Project Screening Tools (Role of Advisory team of PT SMI)
Example of SDG Indonesia One (Development Facilities): Project Screening Tools for Renewable Energy Power Plant Projects Collaborative Structure and Schemes
Activities Required for Project Screening Tools
Cost Sharing
Defining Project Screening Tool
Basic Criteria Standard Documentation FGD Evaluation
be used as preliminary/selection tools to screen project proposal received by UNDP
and bankable terms and conditions
basic criteria, Standard Project Parties, Documentation and Bankable Term & Conditions.
project sponsor based on basic criteria in Preparation stage.
Finalization
stakeholder discussion, additional support required, etc. in accordance with bankability criteria stated by potential lenders.
UNDP SDG Indonesia One Platform
Lenders
Loan
Development Bank Climate Fund Donor
Provide the Bankable Projects of Renewables Energy that is ready to be Financed by Lenders
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Example of SDG Indonesia One (Development Facilities): Regional Infrastructure Development Fund: Hospital Project
Role Project preparation & financing Project Preparation IDR 3,164,840,000 using SECO grant to construct DED & environmental documents Financing Commitment: IDR 300 billion Tenor 5 years Interest rate: 9.4 % per annum
the services, health facilities and infrastructures in North Sulawesi Province
health services and referrals since North Sulawesi province has not got an adequate and easily- accessible provincial referral hospital (type B).
Benefits
North Sulawesi Regional Hospital (Type B)
Eye Center Hospital North Sulawesi
health services to the community
high blindness in North Sulawesi Benefits
Municipal Government
Role Project preparation & financing Project Preparation IDR 2,918,498,000 using SECO grant to construct DED & environmental documents Financing Commitment: IDR 100 billion Tenor 5 years Interest rate: 8.53 % per annum
Loan USD 100 million Loan USD 100 million Two-Step-Loan USD 200 million Municipal Loan Grant USD 3 million Technical Assistance
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Geothermal Resource Risk Mitigation Public Window
SOEs
50%
De-risking Government Fund
50%
Blended Loan IBRD/GCF/CTF
Private Window
Private Sectors
50%
Blended Loan IBRD/GCF/CTF
50%
Financial Instrument Reimbursable Grant GCF/CTF The Geothermal Resource Risk Mitigation ("GREM") was developed by the World Bank and the Government of Indonesia through PT Sarana Multi Infrastruktur (Persero). GREM is a geothermal exploration financing facility for SOE and private developers that
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