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Trans-Java toll road project boosts non-state funding model
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Map of trans-Java toll road project linking the northwestern and eastern tips of Java. (Public Works & Public Housing Ministry’s toll road regulatiory agency (BPJT)/-)
T
he trans-Java toll road has come up as the first project to reach financial closure under the non-state budget infrastructure funding (PINA) model.
National Development Planning Board (Bappenas) head Bambang Brodjonegoro on Friday announced the financial closure for the project run by developer PT Waskita Toll Road, a subsidiary of state-owned construction firm PT Waskita Karya.
"The PINA program has successfully funded the initial phases of nine toll road sections worth Rp 70 trillion [US$525 million], five of which are part of the trans-Jawa toll road," he said at the Presidential Palace.
Bambang added that state-owned infrastructure financing company PT Sarana Multi Infrastruktur (SMI) and state-owned pension insurance firm PT Taspen had distributed early equity of Rp 3.5 trillion, bringing total equity to Rp 9.5 trillion of the Rp 16 trillion needed.
Under the PINA scheme, cash from pension funds, for instance, will be channeled into an intermediary, which will later issue bonds.
Proceeds from bond sales will be used to buy equity in companies executing infrastructure projects. Once the infrastructure becomes operational, the intermediary will sell the equity.
PINA, intended to speed up financing for infrastructure development, complements existing schemes for private-public partnerships (PPPs), such as viability gap funds (VGF) and availability payment (AP).
"The pilot project is not the only one we will facilitate through PINA. We are reviewing several prospective investees that will be facilitated by Bappenas after the trans-Jawa [project]," Bambang said. (lnd)
