Request for Expressions Of Interest

INFRASTRUCTURE REFORM SECTOR DEVELOPMENT PROJECT (IRSDP)

Loan ADB No.2264-INO (SF)
Date : 29 November 2010

REQUEST for EXPRESSIONS OF INTEREST (EOI)

The Government of Indonesia (GOI) under support from the Asian Development Bank will implement The
Project Development Facility (PDF). This PDF provide funding for the preparation and bidding of smallerscale decentralized regional infrastructure projects.
Objectives:
By using PDF Assistance, the Local Government of Maros envisages to award a "Maros Water Supply
Project " to a credible company as a concessionaire to design, build, finance, operate and transfer a bulk
water treatment facility and associated main pipeline to supply PDAMs over a reasonable period of time.
The main objective of consultant services are to (i) ensure the readiness of the project for offer to the
market; (ii) confirm the technical feasibility and attractiveness of the project for private investment; (iii)
propose project financing structure based on a PPP modality; (iv) confirm affordability of the project to
Pemkab Maros; (v) develop a Bid Implementation Plan including comprehensive bidding documents; (vi)
assist with the execution of the Bid Implementation Plan.
Scope of Services:
Based on the described objective, the consultant will support the TIM KPS in a number of areas, including
but not limited to:

a. Stage I: Final Business Case

b. Stage II: Bid Implementation
Please refer to the Term of Reference (TOR) for detailed information.
Duration for consulting services assignment (10 months):

- It is estimated about 11.5 person-months of national consultant inputs and 0.8 person-months of international
consultant inputs will be required for stage I and 21.5 person-months of national consultant inputs and 1.2 personmonths of international consultant inputs for stage II;
Selection Method for Firms: Consultants' Qualifications Selection under ADB Guidelines.
Type of Proposal Requested from Firms: Biodata Technical Proposal.
Term of Payment: Output Based.

The procurement committee of Bappenas, invites eligible qualified Consultant Firms to provide the services of:
Transaction Advisory Services for Maros Water Supply Project
The Consultant Firms who has qualified for the projects should submit their EOI separately provided in hardcopy one
original EOI and two copies. The EOI should indicate their qualification to perform the services such as relevant
experience in last 5 years, qualification and competency of key personnel, company profile, legal document, etc, using
standard format. The format template for the EOI and the Term of Reference is available online at website:
www.irsdp.org.
The EOIs submitted will be evaluated on the following criteria: Eligibility of the consulting entity; Management
competence (weighting point: 30%); Technical Competence (weighting point: 60%); and Geographic competence
(weighting point: 10%).
Expression of Interest must be delivered to the address below by Monday 3 January 2011, at 16:00 hours.
Ir. Hari Kristijo, MSc. (Chairman of Procurement Committee for PHLN Projects, Bappenas)
Gedung Madiun Lt.Basement, Jl Taman Suropati No. 2, Telp : (62 - 21) 31931392
Jakarta 10310, INDONESIA.

Template for Consulting Firms1

Expression of Interest (EOI) submission

Project Name
Project Country

I.

Transaction Advisory Services for Maros Water Supply

Project
Indonesia

Eligibility

Declaration
We2 hereby declare that:
(i)

(ii)
(iii)

we acknowledge that we have read the advertisement, including the terms of

reference (TOR), for this assignment and fully acquainted myself with all matters
relating to the Government of Indonesias Policy with respect to Public Private
Partnerships (PPP);
we have not been engaged to prepare such TOR as a firm, association, or joint
venture; and
no full-time or part-time or contracted expert employed by our firm, association,
or joint venture has been engaged to prepare such TOR.

We further confirm that, if any of one or more of our experts is engaged to prepare TOR
for any ensuing assignment as part of our work product under the assignment to which
this advertisement relates, our firm and any such expert(s) will be disqualified from
short-listing and/or participation in such follow-on assignment.
CMS Registration Number:3

Lead Firm
Signed by:
Position :
Associate/Partner 1

CMS Registration Number:3

Signed by:
Position :
Associate/Partner 2

CMS Registration Number: 3

Signed by:
Position4 :

3
4

This EOI template is applicable for ADB-TA, and serves as a strongly recommended guide for Executing
Agencies (EAs) for loan projects. For Consultants Qualification Selection (CQS) and Indefinite Delivery
Contracts (IDCs), where selection and pre-qualification respectively are based on an evaluation of an EOI, the
template may be amplified to reflect any requirement for additional information.
EOIs may be submitted by a firm, association, or a joint venture. For short-listing purposes, the combined
experience of an association or a joint venture will be evaluated although the qualifications of the lead firm will
be given a greater weight. Whereas the firm, association, or joint venture is free to submit additional
information, in hard or soft copy, short-listing will be based primarily on an evaluation of information included in
the EOI template.
CMS registration is not mandatory for the associated firms
Unless otherwise specified, an international firm, as a lead firm, associate or partner can only be nominated in
one EOI. A national firm as a lead firm can only be nominated in one EOI. A national firm as an associate or
partner can be nominated in more than one EOI. To avoid confusion and possible elimination after short-listing,
lead firms of associations or joint ventures are strongly advised to confirm relationships (exclusive or nonexclusive) with selected associates or partners prior to expressing interest.

InfrastructureReformSectorDevelopmentProjectLoanADBNo.2264INO(SF)

II.
Management Competence (Please answer each question in no more
than 10 sentences)
a.
Provide the name, qualifications and relevant experience of the lead firms
director or manager who will assume overall responsibility for the firms,
associations or joint ventures team coordination, management and output.

b.
If you are proposing an association or a joint venture, outline the rationale
for, and benefits to the assignment of, the arrangement.

c.
If you are proposing an association, or a joint venture, outline proposed
management coordination of the arrangement, including the role of each firm.

d.
Does your firm/association/joint venture have standard policies,
procedures or practices in place that promote quality in: the workplace, your
interaction with clients, and the outputs you produce? If yes, describe briefly.

e.
How will you ensure the quality of your firms/associations/join ventures
performance over the life of this assignment?

InfrastructureReformSectorDevelopmentProjectLoanADBNo.2264INO(SF)

f.
How will your firm/association/joint venture deal with any complaints
concerning the performance of the staff or the quality of the reports submitted for
this consulting assignment? What internal controls are in place to address and
resolve complaints?

g.

Please enclosed your legal documents, such as:

For both International/National Firm:
a. Legal Establishment (Akte Pendirian Perusahaan)
b. Association/Joint Venture Agreement
For National Firm:
c. Member of Association
d. Certificate of Domicile (Surat Keterangan Domisili)
e. TAX Payer Registration Number (NPWP Perusahaan)
f. Company Business License Surat Izin Usaha Perusahaan (SIUP)

InfrastructureReformSectorDevelopmentProjectLoanADBNo.2264INO(SF)

III.

Technical Competence

Narrative Descriptions
With reference to the attached project sheets, and in the context of the assignments
TORs, summarize the relevant technical qualifications of your firm/association/joint
venture (maximum of 2 pages).

InfrastructureReformSectorDevelopmentProjectLoanADBNo.2264INO(SF)

IV.

Geographical Competence

Outline the country /regional experience of the firm/association/joint venture

(maximum of one half page).

InfrastructureReformSectorDevelopmentProjectLoanADBNo.2264INO(SF)

Appendix 1

Project Sheets
Indicate up to 10 reference projects from the past 5 years that the firm/association/joint
venture feels are relevant. You may refer to your Consultant Management System (CMS)
registration projects sheets for additional information.4
Project 1 of __

Project Name
Name of Client
Country
Participation

Project location within Country

As lead firm
As associate firm
(US$)

Value of Services
Source of Financing
Consultancy Services
(i) No. of staff
(ii) No. of person months
Length of Consultancy Assignment
Start Date
Completion Date
Name of Associate Firms (if any)

(dd/mm/yyyy)
(dd/mm/yyyy)

No. of Person-Months of Professional Staff Provided by Associated Firm(s)

Name of Senior Staff (Project Director/Coordinator, Team Leader) Involved and Functions
Performed

Detailed Narrative Description of the Project

Detailed Description of the Actual Services Provided by your Firm

Applicable to TA only.

InfrastructureReformSectorDevelopmentProjectLoanADBNo.2264INO(SF)

Appendix 2
Additional Information

InfrastructureReformSectorDevelopmentProjectLoanADBNo.2264INO(SF)

REPUBLIC OF INDONESIA

MINISTRY FOR NATIONAL DEVELOPMENT PLANNING/

NATIONAL DEVELOPMENT PLANNING AGENCY

TERMS OF REFERENCE

TRANSACTION ADVISORY SERVICES FOR

MAROS WATER SUPPLY PROJECT

INFRASTRUCTURE REFORM SECTOR DEVELOPMENT PROJECT

ADB LOAN 2264 - INO (SF)

NOVEMBER 2010

TERMS OF REFERENCE
TRANSACTION ADVISORY SERVICES FOR
MAROS WATER SUPPLY PROJECT
TABLE OF CONTENTS
1

OBJECTIVES AND PURPOSE OF THE ASSIGNMENT ........................................................ 7

1.1

ROLE OF BAPPENAS AND THE PDF ...................................................................................... 7

1.2

REQUEST FROM THE GOVERNMENT CONTRACTING AGENCY (GCA) ...................................... 7

1.3

BACKGROUND .................................................................................................................... 7

1.4

PROJECT RATIONALE .......................................................................................................... 7

1.5

THE PROPOSED PROJECT WORKS....................................................................................... 8

1.6

SITE ENABLEMENT .............................................................................................................. 9

1.7

PRE-CONDITIONS FOR STAGE 2: BID IMPLEMENTATION ......................................................... 9

1.8

OBJECTIVES OF THE ASSIGNMENT ....................................................................................... 9

SCOPE OF WORK ................................................................................................................ 10

2.1

STAGE I: FINAL BUSINESS CASE ....................................................................................... 10

Deliverable 1: Project Preparation Report ............................................................................. 10

Task 1.1: PPP Project Readiness Assessment .................................................................... 10
Task 1.2: Institutional Capacity Assessment ......................................................................... 10
Deliverable 2: Final Business Case....................................................................................... 11
Task 2.1: Project Rationale ................................................................................................... 11
Task 2.2: Water Resource Confirmation ............................................................................... 11
Task 2.3: PDAM Business Plan ............................................................................................ 11
Task 2.4: Market, Technical and Safeguard Due diligence ................................................... 11
Task 2.5: Legal Due Diligence ............................................................................................... 12
Task 2.6: Detailed Output Specification ................................................................................. 12
Task 2.7: Scenario Definition and Risk Allocation Matrix ....................................................... 13
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Task 2.8: Financial and Economic Analysis ........................................................................... 13

Task 2.9: Investor and Financial Market Assessment........................................................... 14
Task 2.10: Government Support Analysis .............................................................................. 14
Task 2.11: Tariff and Financing Structure .............................................................................. 15
Task 2.12: PDAM Performance Contract Agreement ........................................................... 16
Task 2.13: Draft Term Sheet .................................................................................................. 16
Task 2.14: Bid Implementation plan ....................................................................................... 17
Deliverable 3: Presentation of the Final Business Case ....................................................... 18
2.2

STAGE 2: BID IMPLEMENTATION ......................................................................................... 18

Deliverable 1: Bid Documents ............................................................................................... 18

Task 1.1: Draft Project Agreement and Supporting Documents ........................................... 18
Task 1.2: Tender Guidelines .................................................................................................. 19
Task 1.3: Draft Bid Documents .............................................................................................. 20
Task 1.4: Establish secure online data room ......................................................................... 20
Task 1.5: Detailed Bid Implementation Plan ......................................................................... 21
Task 1.6: PPP Agreement Management Plan ...................................................................... 21
Deliverable 2: Assistance with Bid Process .......................................................................... 21
Task 2.1: Alert Potential Bidders ........................................................................................... 21
Task 2.2: Pre-Qualify Bidders ................................................................................................ 21
Task 2.3: Finalize Project Structure and Procedures for Evaluating Bidders ........................ 22
Task 2.4: Contract Negotiations and Concession Award ....................................................... 22
Task 2.5: Post-Award Negotiations ....................................................................................... 23
Task 2.6: PPP Agreement Signature and Financial Closure ................................................ 23
Deliverable 3: Presentation of Final Project Report .............................................................. 23
3

CONSULTANT DELIVERABLES .......................................................................................... 23

DURATION OF THE CONSULTANCY.................................................................................. 24

OUTLINE REQUIREMENTS FOR THE CONSULTANT ....................................................... 24

MANAGEMENT OF SERVICES ............................................................................................ 26

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INPUTS TO BE PROVIDED BY GOVERNMENT ................................................................. 26

BUDGET ................................................................................................................................ 26

ASSIGNMENT SCHEDULE................................................................................................... 27

TABLES
Table 1: Pre-Conditions to be satisfied prior to commencing Stage 2: Bid Implementation ........... 9
Table 2: Deliverable Items and Terms of Payment ....................................................................... 23
Table 3: Qualifications of Staff ...................................................................................................... 24
Table 4: Illustrative Staff Inputs ..................................................................................................... 25
Table 5: Budget Estimate for Services (US$) ............................................................................... 27

Maros Water Supply Project

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GLOSSARY OF TERMS AND ABBREVIATIONS

Term

Meaning

ADB

Asian Development Bank

Bappeda

Badan Perencanaan dan Pembangunan Daerah (Regional Development Planning

Agency)

Bappenas

Badan Perencana den Pembangunan Nasional (National Development Planning

Agency)

BKPM

Badan Koordinasi Penambaan Modal (Investment Coordination Board)

BPPSPAM

Penyehatan Badan Pendukung Pengembangan Sistem Penyediaan Air Minum

(National Water Supply System Development Supporting Agency)

BOT

Build, Operate and Transfer

CA

Cooperation Agreement

DGHS

Directorate General Human Settlements (DJCK)

ECA

Export Credit Agency

EIRR

Economic Internal Rate of Return

EOI

Expression of Interest

Facility

The Facility will comprise the intake, raw water transmission pumping station and
rising main, water treatment plant, service reservoir, trunk water mains, and
associated appurtenances

FBC

Final Business Case1

FIRR

Financial Internal Rate of Return

GCA

Government Contracting Agency

GoI

Government of Indonesia

The term Final Business Case refers to the document which is defined and prepared as a deliverable
under Stage 1 of these Terms of Reference. The FBC document contains all information and
assessments which are required under the term Prastudi Kelayakan as defined in PerMen PPN/Head of
Bappenas 4/2010.

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ToR Transaction Advisory

IDR

Indonesia Rupiah

IIGF

Indonesian Infrastructure Guarantee Fund

IIFF

Indonesian Infrastructure Financing Facility

IM

Information Memorandum

IRSDP

Infrastructure Reform Sector Development Project

JICA

Japan International Cooperation Agency

KKPPI

Policy Committee for Accelerating the Provision of Infrastructure (Komite Kebijakan

Percepatan Pembangunan Infrastuktur)

KPS

Kerjasama Permerintah Swasta (PPP)

MLA

Multi Lateral Agency

MoF

Ministry of Finance

NRW

Non-Revenue Water

OBC

Outline Business Case

P3CU

PPP Central Unit

PDAM

Perusahan Daerah Air Minum (Local Water Authority)

PemKab

Pemerintah Kabupaten (Local Government)

PII (PT)

Penjamin Infrastruktur Indonesia (Perseroan Terbatas)

PJPK

Penanggung Jawab Proyek Kerjasama (GCA)

PPC

Project Preparation Consultant (PT Waseco Tirta and PT Multi Area Desentralisasi
Pembangunan)

PPP

Public Private Partnership (KPS)

Project

Maros Water Supply Project

PSO

Public Service Obligation

RFP

Request for Proposal

ROE

Return on Equity

RMU

Risk Management Unit (within the MoF)

SPAM

Sistem Perpipaan Air Minum (Piped Drinking Water Supply System)

SMI (PT)

Sarana Multi Infrastruktur (Perseroan Terbatas)

Maros Water Supply Project

ToR Transaction Advisory

SPV

Special Purpose Vehicle

SOE

State Owned Enterprise

TAS

Technical Advisory Services (provided by Bappenas through the IRSDP)

Maros Water Supply Project

1
1.1

ToR Transaction Advisory

OBJECTIVES AND PURPOSE OF THE ASSIGNMENT

ROLE OF BAPPENAS AND THE PDF

1. Bappenas, through the Project Development Facility (PDF) Steering Committee, has approved the
use of the PDF to fund the preparation for the Development of the Maros Water Supply Project under the
terms of this TOR. The PDF is part of the Infrastructure Reform Sector Development Project (IRSDP).
The Project Management Unit (PMU) responsible for the implementation of the IRSDP is seeking to
appoint consultants (henceforth the Consultant) to conduct the proposed further study and assist with the
subsequent bid implementation (henceforth the Transaction) in accordance with Perpres 67/2005 and
13/2010 and Bappenas Ministerial Regulation 3/2009. The project is categorized as a potential project.
2. The Government Contracting Authority (GCA) for the proposed Public Private Partnership (PPP)
project is the local government of Kabupaten Maros. The PemKab Maros will be responsible for
supervising and monitoring the performance of the Consultant through a technical team functioning as
the PPP Project Implementation Unit. The PMU-IRSDP will assist in the overall supervision and
monitoring on technical matters via TAS (Technical Advisory Services), which is under the PMU.

1.2

REQUEST FROM THE GOVERNMENT CONTRACTING AGENCY (GCA)

3. The Study is being prepared pursuant to a request from the Local Government of Kabupaten Maros,
hereinafter referred to as the Government Contracting Authority (GCA), as detailed in a letter ref.
600.58/FS.Bappeda.III.2010 of March 12, 2010.

1.3

BACKGROUND

4. Within Kabupaten Maros piped water supply services are provided by PDAM Kabupaten Maros. The
coverage of piped systems in these areas is currently considered by the Local Government to be too low.
5. Problems associated with water supply have received considerable attention, not only from the Local
Governments, but also the Provincial and Central Governments. In recent years considerable
assistance has been provided by the Government of Japan through JICA. Substantial technical
assistance has been provided on a project entitled MAMINASATA Water Supply Project.

1.4

PROJECT RATIONALE

6. The total population of Kabupaten Maros is some 300,000 persons. The current level of the piped
water supply service is 23% of the population. The existing systems have a production capacity of 130
l/sec with NRW at around 40%.
7. The PPC Consultants Demand Survey identified that around 85% of those currently not connected
to the piped water supply systems consider their current supply inadequate. This represents an
unsatisfied demand of around 400 l/sec at present NRW levels. Further, it should be noted that the
PDAM has a formal waiting list of some 17,224 houses. This number represents an immediate
additional market for some 180 l/sec.
8. The PemKab wish to increase the level of service to 71% by 2020. The number of connections
required by 2020 is estimated at 38,938. Assuming an improved NRW level of 25% and a marginal
increase in per capita consumption to 150 liters per day, this number represents an additional production
capacity of around 300 l/sec.
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Maros Water Supply Project

ToR Transaction Advisory

9. In accordance with PemKab objectives, the Project therefore proposes to provide additional
production capacity of some 250 l/sec along with some additional trunk mains within the distribution
system.
10. The Project will help support commercial and industrial development in the area and hence generate
economic growth. It will also improve the quality of life and public health for the residents. The
objectives of this PPP include the following:

provision of bulk treated water which will enable increased coverage of piped drinking water
supply systems in strategic areas of Kabupaten Maros;

increased private sector involvement in piped water supply systems leading to:

1.5

reduction of the need for government to invest capital in developing new assets;

realization of cost savings, particularly in the:

-

reduction of design and construction times,

reduction of the risks in project cost overruns, and

quicker and more efficient decision-making in the implementation processes;

improved financial, commercial management and operational expertise of piped drinking

water supply systems;

reduced costs for the water supply services arising from higher productivity and
economies of scale through expanded coverage; and

sharing or reducing to a minimum the project risks to government.

THE PROPOSED PROJECT WORKS

11. Two major sources of water have been considered for future supplies to Maros. These are the
Bantimurung River and the Maros River. The former has been assessed as providing a cheaper source
of water; however, the amount of available debit is limited to 250 l/sec.
12. Briefly, the project water supply system components consist of:

Intake: capacity 270 l/s. Intake will be equipped with a pumping system to deliver the
raw water to the WTP.

Raw Water Transmission: transmission main of 8.5 km length and 500 mm diameter;

WTP: conventional plant with full treatment including clarification, filtration and
disinfection producing 250 l/sec of drinking water;

Service reservoir: storage of 4,500 cubic meters capacity and associated pumping
station built in the same location as the WTP; and

Trunk mains: primary distribution mains of 37 km in length, with diameter range from
200 to 600 mm.

Maros Water Supply Project

1.6

ToR Transaction Advisory

SITE ENABLEMENT

13. The area of the intake requires land acquisition of around 1,000 square meters and the WTP and
Service Reservoir requires some 7,500 square meters.
The PDAM reports in its letter
Ref.:54/PDAM/MR/X/2010 dated October 28, 2010, that the land for the intake has been acquired,
however the land for the WTP and Service Reservoir has yet to be acquired.
14. The considerable lengths of transmission main are expected be constructed on public land.
15. The project is classified as Category A: Requiring an Environmental Impact Assessment (EIA),
Environmental Management Plan and Public Consultation. Initial environmental investigations have
indicated that the project should not face any significant problems from an environmental viewpoint.

1.7

PRE-CONDITIONS FOR STAGE 2: BID IMPLEMENTATION

16. The following table represents a summary of the current status of fundamental items which should
be secured before the project preparation proceeds to the bid implementation stage.
Table 1: Pre-Conditions to be satisfied prior to commencing Stage 2: Bid Implementation
Item
1

Description
Approval for abstraction of raw
water (SIPA) from
Bantimurung River in the
proposed quantity and rate.

Responsible
SDA - Dinas PU
Province Sulawesi
Selatan

An undertaking that land

acquisition for any private land
required for the water
treatment plant, pumping
stations, service reservoirs
and pipelines will be
completed prior to bidding the
project.
The level of direct
Government Support, if any,
for development of the
facilities.

PemKab Maros

Confirmation-in-principle from
PemKab Maros that it is
prepared to enter into a take
or pay agreement.
The level of contingent
Government Support for the
take or pay agreement with
the PemKab.

PemKab Maros

1.8

DG Water
Resources

IIGF

Remarks
Preliminary approval for the proposed
abstraction has been obtained. A SIPA has
been issued by the PemKab, however this
requires confirmation from the Provincial
Government Agency.
The Local Government of Kabupaten Maros
has to acquire the necessary land for
construction of the intake, WTP, service
reservoir and associated facilities.

To make the Project financially viable the

preliminary proposal is for the intake and raw
water transmission to be provided by the
Government. The proposed Government
Support needs to be confirmed through the
local PSDA.
Agreement for take or pay has been
discussed with PemKab but formal agreement
on the approach has to be provided.
Contact has been made with IIGF and they will
consider the Project when a formal request is
received from the GCA (PemKab Maros).

OBJECTIVES OF THE ASSIGNMENT

17. The objectives of this Transaction Advisory are to:

Ensure the readiness of the project for offer to the market.

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ToR Transaction Advisory

Confirm the technical feasibility and attractiveness of the project for private investment.

Propose project financing structures based on a PPP modality.

Confirm affordability of the project to the PemKab Maros.

Develop a Bid Implementation Plan including comprehensive Bidding Documents.

Assist with the execution of the Bid Implementation Plan

SCOPE OF WORK

2.1

STAGE I: FINAL BUSINESS CASE

DELIVERABLE 1: PROJECT PREPARATION REPORT

TASK 1.1: PPP PROJECT READINESS ASSESSMENT
18. The purpose of the Project Readiness Report is to confirm the readiness of the project:

Ensure the PPP Concept is approved by the PemKab Maros and other stakeholders;

Confirm the readiness of the PemKab to bear the "take or pay" risk on the payments to
be made to the investor for the treated bulk water supply;

Assist PemKab Maros with submission of requests for Government Support from the
relevant Ministries and for a Government Guarantee from the Ministry of Finance given
the Outline Business Case indicates the need for Government Support and Government
Guarantee ;

Ensure the establishment and functioning of TKKSD;

Ensure the site preparation programs (with land acquisition) and resettlement programs
are being implemented, including budget and schedule approved by the DPRD, and

Ensure the plan and timetable of environmental compliance programs and steps to
resolve various legal issues have been executed.

19. PPP Project Readiness Report consists of information on all institutional readiness assessments,
preparation of sites, environmental compliance, land acquisition and resettlement as well as the
readiness reviews of the legal aspects and all supporting documents.

TASK 1.2: INSTITUTIONAL CAPACITY ASSESSMENT

Assist the GCA to establish the Project Management Team members who will be
involved in managing the Final Business Case preparation and the Bidding process.
Assess the capacity of the Team members to perform the required tasks and identify
areas where special capacity building on-the-job assistance will need to be provided by
the Consultant during the period of the PPP Transaction Advisory.

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DELIVERABLE 2: FINAL BUSINESS CASE

TASK 2.1: PROJECT RATIONALE

Provide the basis for the development of the project, including validation of how the
project will not only service an unsatisfied demand for drinking water but also support
both Central and Local Government infrastructure expansion plans and objectives.

TASK 2.2: WATER RESOURCE CONFIRMATION

Confirm the validity of the proposed water abstraction permit (SIPA) for the project.

TASK 2.3: PDAM BUSINESS PLAN

Review the performance of the PDAMs with regard to the current plan which were
previously prepared with the assistance from JICA.

Assist the PDAM to prepare a feasible and realistic Business Plan for the period 20122016 with the objective of expanding distribution systems in the service areas to a level
and at a rate which will support private investor development of the Bantimuring water
source.

Provide CAPEX financing plans which are achievable and realistic for development of
secondary supply systems.

Include in the Business Plans Customer Relations Programs which will ensure that new
connections are added to the system at the maximum rate once the new supplies
become available.

TASK 2.4: MARKET, TECHNICAL AND SAFEGUARD DUE DILIGENCE

Confirm with the PemKab Maros and other stakeholders, the project priority, institutional
capacity, views on providing PPP project support, and available budget.

Review, validate and update institutional, market, technical, social, environmental and
legal analyses; assess potential for optimism bias.

Review the technical design and the estimated costs of the project, including CAPEX
and OPEX. Including:

Confirmation with relevant Central and Local Government agencies of the scope
of work to be offered to the private sector.

Finalization of outline designs for the work.

Review and adjustment where necessary of the budget estimates of cost for the
construction and operation of the proposed works.

Confirm that the project is financially viable and that any changes in project scope and
costs since the preparation of the Outline Business Case have not materially affected its
viability.
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Determine the status of land acquisition and resettlement programs, environmental

clearances; prepare a draft scoping report and TOR for AMDAL; clarify the approvals
process for construction of transmission mains and related facilities in public reserves;
assess overall project readiness.

Update the Project plan setting out key milestones for components, including approvals,
design, construction, commissioning and operation.

TASK 2.5: LEGAL DUE DILIGENCE

Evaluate the legal/regulatory framework for the special purpose vehicle which will be
established by the private sector and identify any impediments to mobilizing finance in
areas such as taxation.

Assess potential restrictions on local and foreign sponsors and potential lenders in areas
such as competition, tax, labor, use of financial instruments, and foreign exchange.

Identify the mechanism for arbitrating disputes between the SPV and the PemKab
Maros.

Determine the extent to which the PemKab Maros can contract with the private sector
establish an escrow account, and provide forms of credit enhancement to support the
project.

Clarify legal requirements with regard to bid documents, bid evaluation procedures and
criteria which the PemKab Maros must comply with to tender a PPP contract.

TASK 2.6: DETAILED OUTPUT SPECIFICATION

Prepare a description of the broad functional content of the Project.

Define the key service relationships and the interaction of the critical elements of service
delivery including the scope of the concession contract, the obligations of both the
concessionaire and the PemKab Maros.

Prepare a detailed list of assumptions with regard to the formulation of the Business
Case including those relating to the technical design as well as those used in the
financial analysis.

Define the proposed tariff, terms of payment and penalty structure.

Prepare indicative schedules for design and construction of civil works and supply and
installation of equipment.

Define all sites to be utilized by the Project and any limitations on construction at each
particular site.

List environmental/safety compliance requirements to be observed in Project

implementation.

Define transfer requirements to be implemented at the end of the concession period.

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Define key performance indicators (KPIs) for outputs and minimum required levels that
need to be achieved (price, service levels, quality, availability, minimum regulatory
standards, etc)

Outline monitoring arrangements for both the construction and operations phases of the
Project.

Define dispute resolution and contract adjustment mechanisms.

TASK 2.7: SCENARIO DEFINITION AND RISK ALLOCATION MATRIX

Define sovereign risks including currency/exchange rate controls, economic growth rates
and political stability as they relate to the Project.

Define project revenues, O&M, capital, project preparation and management costs under
alternative development scenarios.

Define the potential financial structures

Assess threshold return on equity (ROE) for prospective sponsors and investors.

Define Government support scenarios which will be analyzed including:

o

Early termination guarantee payment to lenders

Political risk support to the lenders covering:

Expropriation of the project e.g. nationalization;

Political violence

Breach of contract

Minimum revenue guarantee

Prepare indicative risk allocation matrices for various outputs, technical solutions,
financial structures and Government support scenarios.

Identify costs of mitigation strategies and ensure estimated project costs and benefits
reflect these risks.

Identify residual risks which will be borne by the PemKab Maros/ other Government
agencies and the private sector under each scenario.

TASK 2.8: FINANCIAL AND ECONOMIC ANALYSIS

Develop a detailed financial model.

The financial model should include at least the following components:

o

Financial viability/sustainability

Profit and loss statement

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Maros Water Supply Project

o

Balance sheet

Cash flow statement

Financial indicators

ToR Transaction Advisory

Scenario results should be presented in Rp

Evaluate defined scenarios and risk allocation structures in relation to the following
indicators:
o

Tariffs

FIRR

FNPV

ROE > 17%

Debt Service Coverage Ratio (DSCR) > 1.3

Conduct a sensitivity analysis and identify the impact on the ROE and other financial
indicators.

Calculate the EIRR in accordance with Government requirements.

Assess the probability and impact of major risks and propose adequate risk mitigation
measures.

Assess if there are any significant changes to the project EIRR under the various
scenarios.

TASK 2.9: INVESTOR AND FINANCIAL MARKET ASSESSMENT

Interview potential local and international investors and assess their attitude to project
risks and likely minimum levels of Government support which are proposed.

Interview local financial institutions to determine if credit is available on the local market
and on what terms.

Prepare a report summarizing the views expressed at these meetings.

TASK 2.10: GOVERNMENT SUPPORT ANALYSIS

Evaluate the extent the GCA is willing to support the project in terms of providing:
o

Political risk guarantee directly, or through an International Financial Institution

or private insurance company

Annuity to private sector

Liaise with RMU and IIGF to confirm the extent to which they are willing to support the
project in terms of providing:

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Early termination guarantee payment to lenders

Output payment guarantee

Assess the likely market interest in developing and financing the project under various
forms of Government support

Assess the extent that project viability can be improved by mechanisms such as:
o

Extending the term of the PPP agreement, deferring capital expenditure,

changing project scope

Adjusting the rental on the land provided to the concessionaire

Use of GCA royalties or profit sharing mechanism

Evaluate options in terms of value for money, bankability, government support and
affordability to the GCA.

Recommend a PPP technical and financial structure.

TASK 2.11: TARIFF AND FINANCING STRUCTURE

Review tariff setting policy, adjustment mechanism, benchmark indices for making
adjustments to parameters such as inflation and exchange rate movements.

Specify tariff structure, adjustment, and output payment/penalty mechanism for the
Concessionaire.

Determine procedures and responsibilities for reviewing and adjusting the tariff over the
life of the PPP concession.

Define the structure of the political risk and payment guarantees, and revenue support
provided by the PemKab Maros.

Define the structure of the Government Support clawback mechanism.

Define the lease rental structure in terms of fixed and variable payments linked to
availability and usage of outputs.

Define the structure of the performance guarantee from the private sector supplier
(performance bond) covering failure to achieve financial close, and construction (e.g. a
percentage of project cost, which will be released at the time of construction completion)

Define term of the contract and income sharing arrangements between the project
company and the PemKab Maros in circumstances where:
o

Cost over-run

Construction is completed early

Project returns exceed a certain maximum level, triggering a clawback

mechanism

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Define timing and value of payments from the PemKab Maros.

Assess the need to ring fence tariff revenues, identify requirements for establishing an
escrow account and trust bank, define cash flow priorities, billing procedures, accounting
and reporting requirements, and management information system needs.

Assess other likely forms of arrangements that will be needed by financiers in terms of
securing cash flows, and managing risks in the event of a change in ownership or
insolvency (eg direct agreement with the PemKab Maros defining step in rights), or force
majeure (natural disaster or political turmoil).

Define pre-conditions for concessionaire to meet service obligations, default and risks
clauses, step-in rights for the lenders etc.

Establish benchmarks for bid evaluation framework in terms of output costs,

competitiveness and affordability of PemKab Maros support.

TASK 2.12: PDAM PERFORMANCE CONTRACT AGREEMENT

Draft a Performance Based Contract Agreement between the PemKot and the PDAM
which defines, at a minimum, the following:
o

Payment terms to PemKab for bulk water supplied by the SPV to the PDAM

Increased coverage milestones to be achieved

NRW improvement activities and targets

Service levels to be maintained:

-

Quality of water supplied

Continuity of service

Minimum water pressure in the system

Human resources management policies and capacity building requirements

Efficiency and effectiveness of tariff collection operations

Operations and maintenance requirements

Safety performance requirements

TASK 2.13: DRAFT TERM SHEET

Prepare the draft term sheet for the Project Agreement including:
o

Details of the Concession, off-taker, term etc

Scope of the Project

Outputs to be provided and minimum standards

Penalties for violating output standards

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Nature and extent of Government Support

Minimum revenue/payment guarantee provisions

Procedure for setting and adjusting user fee/tariff over time

Provisions relating to competing facilities

Estimated capital costs, construction period

Status of Land acquisition program

Health, Safety, Social and Environment Requirements

Provisions for change of scope

Provisions for clawback payments by the concessionaire

Provisions relating to escrow account

Provisions relating to insurance

Provisions relating to assignment/substitution rights relating to lenders

Provisions relating to audit and certification

Provisions relating to change in the law

Provisions for compulsory buyback of assets at termination/expiry

Contingent liabilities for the Government

-

Maximum termination payment for Government default

Maximum termination payment for concessionaire default

Any other penalties proposed under the agreement

Proposed dispute resolution mechanism

Proposed governing law and jurisdiction

Conditions precedent

Maximum period for achieving financial close

Need for an Independent Engineer to monitor construction

TASK 2.14: BID IMPLEMENTATION PLAN

Define the proposed bid strategy:

o

Target operators and financiers

Two stage bid process

Criteria for short listing etc

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Detail institutional requirements to manage and implement the bid process.

Define requirements in terms of bid documents.

Prepare a list of potential bidders and detail bid evaluation criteria.

Prepare the bid implementation plan, management responsibilities timeline for bid
process and resource needs.

DELIVERABLE 3: PRESENTATION OF THE FINAL BUSINESS CASE

Prepare a Final Business Case that consolidates the findings of the Outline Business
Case and the above listed tasks.

On completion of the Final Business Case, the PemKab Maros with assistance from the
Consultant is to present the Project to BAPPENAS and Ministry of Finance.

Once concurrence of all parties is received to the proposal, the Consultant is to proceed
with the Bid Implementation phase of the Project.

2.2

STAGE 2: BID IMPLEMENTATION

DELIVERABLE 1: BID DOCUMENTS

TASK 1.1: DRAFT PROJECT AGREEMENT AND SUPPORTING DOCUMENTS

The draft Project Agreement should contain at least the following provisions:
o

Structure and description of the contracting body

Scope of the project, output definition, payment structure, performance

standards, provisions for change

Transfer of assets

Implementation schedule

Length of the contract, breaks, triggers and renewal clauses

Monitoring and supervision arrangements

Liabilities of parties to the contract

Terms under which facilities and services will be provided

The structure, method of operation and funding of the bidder

Income sharing arrangements (where appropriate)

Step-in rights for the Government, allowing it to take over service provision if the
supplier gets into difficulties

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Step-in rights for the lenders, allowing them to substitute another service
provider if the supplier defaults

Force majeure and termination provisions

Termination payment (eg 100% debt, plus equity in accordance with costs
incurred on project implementation costs defined in the bid documents)

Governing law and dispute resolution mechanism

Role and scope of work of the Independent Consultant who will monitor project
implementation on behalf of the Government

Support documents including:

o

The land lease and raw water supply agreements, defining factors such as
scope, availability provisions and payment terms

Market analysis and feasibility studies

Draft TOR for the AMDAL and Draft Resettlement Plan

Details of existing contractual commitments.

TASK 1.2: TENDER GUIDELINES

Prepare guidelines for the Government to run the tender, providing information on:
o

General overview of how the tender should be set up, organized, and run

How the tender should be advertised

Who should run the tender and the probity procedures that should be followed

Information that should be provided to potential concession bidders, the form of

data room forum and confidentiality conditions

Information that should be requested from the potential bidders

Define two stage bidding process with prequalification required and pre-bid
conference required

The need for and where necessary amount of a bid bond

The criteria which should be used to evaluate the PPP bids and the scoring
mechanism to be applied:
-

Qualifications - technical capability and experience, and financial

standing

Project bid evaluation - least cost to Government/users, quality of

service, technical feasibility etc

Procedure to publicize bidding results

The number of short-listed firms

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Procedure to conduct negotiations

Forms of documentation which should be exchanged and when during the

tendering process

Rules of conduct and protocol for conducting the bidding process

Procedure to handle unsolicited or non-compliant proposals

Procedure to handle conflicts of interest

Procedure to handle mistakes, omissions, protests, leaks, and other untoward

events that may occur during the tender process

Proposed tender time-table

Checklist of information to be provided to potential bidders

TASK 1.3: DRAFT BID DOCUMENTS

The draft bid documents should include the following:

o

Advertisement for the PPP tender

Information Memorandum (IM)

Request for Expression of Interest (EOI)

Request for Proposal (RFP)

Management Representation Letter

Confidentiality Statement

Instructions to bidders on selection criteria and the concession process

Checklists for various phases of the bid process.

TASK 1.4: ESTABLISH SECURE ONLINE DATA ROOM

Prepare database and confidentiality agreements

Market analysis

Results of technical audits and evaluations, where appropriate

Land ownership details

Environmental and ground studies

Relevant laws and regulations

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TASK 1.5: DETAILED BID IMPLEMENTATION PLAN

Work with the Procurement Committee established within the Project Management
Team to review, refine and approve proposed financial structure, bid strategy, bid
evaluation criteria etc. Update bid implementation program identifying major milestones,
decision points, responsibilities etc.

TASK 1.6: PPP AGREEMENT MANAGEMENT PLAN

Prepare a plan for management and administration of the PPP Agreement during the
post-transaction period - Phase IV: Contract Management. Provide an outline of the
structure, responsibilities and reporting requirements of all parties involved in this Phase.

DELIVERABLE 2: ASSISTANCE WITH BID PROCESS

TASK 2.1: ALERT POTENTIAL BIDDERS

Alert potential bidders through use of media to advertise project.

Issue Request for EOI

Hold informal pre-bid discussions

Identify any specific concerns that may need to be addressed in the bid documents and
revise draft RFQ, and other bid documents.

TASK 2.2: PRE-QUALIFY BIDDERS

Issue RFQ and IM that provides following information:

o

Identification of what the Government hopes to achieve by implementing the

project,

Definition of the type of outputs, payment structure and the scope of the project

Description of market structure and regulatory arrangements

Details of existing facilities and how they might be used in the project

Details on preparatory work

Proposed PPP structure, risk allocation framework, form of Government support

and sources of funding

Deliverables expected from the private investor, KPIs, and control arrangements

Activities involved in the bid process.

Detailed pre-qualification questionnaire

Evaluation criteria and required evidence of suitability, including details on

current financial status, track record developing similar types of projects, and
understanding of PPPs
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o

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Submission date and requirements

Hold Pre-Application Conference with prospective bidders

Following Application Due Date review RFQ submissions, verify submissions and
evaluate in accordance with minimum standards of technical and financial capability

Identify and pre-qualify short list of prospective bidders based on qualifications (technical
and financial capacity) of bidders

TASK 2.3: FINALIZE PROJECT STRUCTURE AND PROCEDURES FOR

EVALUATING BIDDERS

Finalize Request for Proposal (RFP) describing the project, defining the PPP output
specification, payment structure, performance standards, draft contract and support
agreements, information required from potential bidders to assess technical and financial
capacity, criteria for awarding the concession, and submission requirements (including
an electronic copy of the financial model of their proposal).

Finalize the procedure to deal with innovative non-compliant bids.

Finalize the procedure for dealing with requests for information, providing information to
bidders and scope for negotiation.

Issue RFP and bid documents to prospective bidders.

Respond to requests for information in accordance with agreed procedures.

TASK 2.4: CONTRACT NEGOTIATIONS AND CONCESSION AWARD

Attend and assist with Closing of Tender on Bid Due Date.

Prepare a report on Bids Received including verification of adequacy and conformity of

bids and a bid evaluation; and select preferred bidder and standby bidder.

Assist with clarification/negotiation of the final terms of the PPP Agreement including
requirements for Government support, conditions precedent, and term of the PPP
Agreement before it expires due to failure to achieve financial close.

Review proposed terms in the light of the assumptions in the Final Business Case to
confirm that they offer value for money and are affordable.

Conduct due diligence on proposed bids to confirm feasibility.

Obtain approval from Government/MOF that the bid is affordable and feasible, and
finalize the level and form of Government Support which will be provided.

Award the PPP Concession Agreement and issue Letter of Acceptance specifying:
o

Conditions precedent

Performance bond requirements

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Publish results and debrief unsuccessful bidders.

TASK 2.5: POST-AWARD AND FINAL PROJECT REPORT

Assist with compilation of PPP Project documentation

In collaboration with the GCA, prepare a Final Project Report documenting the complete
Stage 1 and 2 works and focusing on Lessons Learned in the execution of the
assignment.

DELIVERABLE 3: PRESENTATION OF FINAL PROJECT REPORT

The GCA with assistance from the Consultant is to present the Final Project Report to
BAPPENAS, Ministry of Finance and the ADB.

CONSULTANT DELIVERABLES

20. The contract is to be output based with lump sum payments made based on deliverable items. The
following table provides details of deliverables, due dates and portions of the contract sum which may be
claimed on successful completion, delivery and acceptance of each item.

Table 1: Deliverable Items and Terms of Payment

No.
1 a.
b.
c.
d.
e.

Deliverable/Milestone
Mobilization
Inception Report
Project Preparation Report
Draft Final Business Case
Final Business Case
Total Stage 1

Bid Documents
Bidding Commenced
Bids Received
Preferred Bidders Selected
Contract Award
Final Report
Total Stage 2

a.
b.
c.
d.
e.
f.

Due Date
End of week 2
End of week 3
End of week 7
End of week 9

End of week 12
End of week 19
End of week 32
End of week 35
End of week 38
End of week 40

23

Terms of Payment
10%
10%
10%
50%
20%
100%
20%
15%
10%
15%
20%
20%
100%

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21. All deliverables must be approved by Bappenas and endorsed by the ADB before submission of
invoices for payment.

DURATION OF THE CONSULTANCY

22. The Transaction Advisory services are expected to be provided over a period of approximately
twelve months. Stage I is expected to take two months including a period for discussion and adoption of
the Final Business Case Report. The timing requirements for Stage II will be confirmed at the end of
Stage I. A preliminary estimate of the durations and sequencing of tasks is included in the attached
Schedule for Transaction Advisory.

OUTLINE REQUIREMENTS FOR THE CONSULTANT

23. The Consultant is responsible for the provision of all professional and supporting staff necessary for
the satisfactory completion of the Services.
24. Minimum experts required for the implementation of assignment in terms of expertise, nationality and
qualifications are presented in Table 3: Qualifications of Staff. The precise experts required will be
identified in the specific terms of reference of IDCA.
Table 3: Qualifications of Staff
Consultant

Nationality
National

Minimum
Qualification
S1

Years
Experience
10

Team Leader/ WS
Engineer
Transaction
Specialist

International

S2

10

Legal Specialist

National

10

Financial
Specialist

National

S2 (plus Izin
Advocat)
S2

10

Social and
Environmental
Specialist

National

S2

Comments
Must have experience in PPP within
water supply sector and the preparation
and design of infrastructure projects.
Must have international experience in
finance for, and deal structuring of, PPP
infrastructure projects
Experience in commercial law, preparing
lease agreements, infrastructure projects
Experienced in preparing financial and
economic models for water supply
projects.
Experience in resettlement in
infrastructure sector; experience in
preparing IEA and familiar with AMDAL
requirements

25. Team Leader - will have a water supply engineering specialization and experience and knowledge of
PPP. He/she will be responsible for coordinating all inputs of the Assignment, submission of reports to
the Government and Bappenas, facilitation of meetings and stakeholder consultations, as required, and
liaison with the Government and Bappenas as required. The Team Leader will be responsible for
reviewing the Final Business Case to confirm commercial and financial requirements, and ensure
necessary drafts bid implementation plan and term sheets of the concession agreement are in place to
move forward the project to the transaction phase. The Team Leader will take the lead preparing and
finalizing the final business case document. He will assist PemKab Maros on matters related to the
government guarantee (IIGF). He/she will be responsible for managing the implementation of bidding
including collating and editing all documents and administrative management of the team through all
phases of the bidding process. As an engineering specialist he/she will lead the technical validation of
project design and cost estimates by reviewing and updating the draft outline business case, verifying
quantities and rates for major civil works, equipment construction, verifying operating and maintenance
(O&M) costs, and confirming the design on a least cost basis in financial and economic terms. The
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Specialist will provide inputs into the output specification, the economic and financial model, contract
specification, and support technical aspects of the bid process.
26. Transaction/Financial Specialist - will have a financial specialization. He/she will review and
validate the market studies and prepare a detailed financial model that can be used to evaluate the
project structure under various economic and financial scenarios. The Transaction/Financial Specialist
will take the lead in preparing the PPP structure and the Draft Term Sheets. During bid implementation
the Specialist will perform an over-seeing role in the preparation of the draft agreement and supporting
documents, tender guidelines and bid documents. He will play a leading role in the bid evaluation and
negotiation activities.
27. Legal Specialist - will be responsible for performing the legal review, confirming project assets are
free of encumbrances, ensuring the required permits are in place, participating in stakeholder
consultations, developing bankability measures such as fee payment mechanism, defining pre-conditions
for a private operator to fulfill in meeting service obligations, drafting concession agreement and support
agreements, as well as the bid documents.
28. Social and Environmental Specialist will review the social impact analysis and ensure that it
complies with the requirements of the Government, and is consistent with ADB's social safeguard
policies. Assess adequacy, project capacity and commitment to implement the indigenous peoples,
involuntary resettlement programs identified in the Outline Business Report. Ensure proposed mitigation
measures and impact monitoring procedures are adequate, and that the necessary consultation and
disclosure frameworks are in place to ensure the proposed Indigenous Peoples and Resettlement
programs are implemented effectively. This Specialist will also review the environmental impact analysis
and ensure that it complies with the requirements of the Government, and is consistent with ADB's
environmental safeguard policies. Assess adequacy, project capacity and commitment to implement the
program identified in the Outline Business Report. Ensure proposed mitigation measures and impact
monitoring procedures are adequate, and that the necessary consultation and disclosure frameworks are
in place to ensure the proposed environmental management program is implemented effectively. The
Social and Environmental Specialist will provide inputs into the output specification, the economic and
financial model, contract specification.
29. Sub-Professionals several sub-professionals will be employed as junior staff to assist the key
professionals. These will include a water supply or civil engineer, a legal and a financial specialist. In
addition an IT specialist will be required along with a cost estimator.
30. Estimated number of staff and durations are shown in Table 4: Illustrative Staff Inputs. The Bidder
should present a management chart which identifies through bar charts the expected time that each
consultant will spend on the Project.
Table 4: Illustrative Staff Inputs
Item

Description

Source

1
2
3
4
5
7

Team Leader / WS Engineer

Transaction Specialist
Legal Specialist Local
Financial Specialist Local
Social and Environmental Specialist
Sub-Professionals
Totals

National
International
National
National
National
National

25

PreFeasibility
1.5
1.0
1.0
1.5
1.0
8.0
14.0

Bid
Implementation
6.5
1.5
2.0
1.5
0.0
8.0
19.5

Input Months
8.0
2.5
3.0
3.0
1.0
16.0
33.5

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MANAGEMENT OF SERVICES

31. Bappenas shall be the Executing Agency (EA) for the Consultancy and will enter into a contract with
the Consultant. The Consultant will have been selected by the PMU (under BAPPENAS).
32. The BAPPENAS PMU-IRSDP will provide strategic direction and advice to the Consultants during
the course of the Assignment. The Consultant will discuss technical issues with TAS-IRSDP including
environmental, social, and resettlement. TAS-IRSDP will provide trainers and training materials for
Capacity Building exercises. During Implementation the Consultant will report to the PemKab Maros,
who is the end user of the Consultancy on technical matters. The PemKab Maros will monitor and
supervise the performance of the Consultant. All technical reports and communications will be submitted
to the PemKab Maros, with copies to BAPPENAS and to TAS-IRSDP.
33. Within 15 working days of the signing of the contract, the Consultant shall submit an Inception
Report giving a detailed workplan and assignments for each individual in the team.
34. The Consultant shall submit concise interim reports each month describing progress of work,
updated work schedule, and any key constraints encountered by the Consultant in the performance of
his activities. The Monthly Reports are to be issued within three working days of the end of the month.
Monthly Coordination Meetings will be held between the Consultant, GCA, PMU, TAS and other
agencies as appropriate within five working days of issue of the Monthly Reports. Meeting notes from
Monthly Meetings will be prepared by TAS and issued within three working days of the meeting. The
notes will include an Action List stating specific tasks which are to be addressed during the month and
responsibilities for these tasks.

INPUTS TO BE PROVIDED BY GOVERNMENT

35. The following inputs will be provided by the Local Government:

Land Ownership: proof of land ownership of the proposed sites.

Data and Information: PDAM and related agencies will provide the Consultant with
relevant existing data and information including appropriate maps, plans, charts, satellite
imagery, previous surveys, and reports necessary to adequately perform the required
Services.

Counterpart Assistance: Province/Local Governments and the PDAM will assign full time
staff to work with the Consultant as counterparts. The counterparts will facilitate access
to parties and documents necessary for the execution of this Consultancy.

Support Facilities: The Provincial Government will provide an office with desks, chairs,
file cabinets, and bookcases for the Consultant in Denpasar during the period of the
Consultancy.

BUDGET

36. The estimated budget for the Technical Assistance for Stage I: Final Business Case is
approximately US$ 104,000. Total Budget is around US$ 234,297. The source of funds for this
Consultancy is from the Infrastructure Reform Sector Development Project (IRSDP) under the provision
of the ADB Loan No. 2264-INO (SF).
26

ID
1
2

Task Name
STAGE 1: FINAL BUSINESS CASE
Deliverable 1: Project Preparation Report

Duration
43 days

Start
3 Jan '11

Finish
Dec
2 Mar '11

10 days

3 Jan '11

14 Jan '11

Project Readiness Assessment

10 days

3 Jan '11

14 Jan '11

Institutional Capacity Assessment

5 days

10 Jan '11

14 Jan '11

Deliverable 2: Final Business Case

25 days

17 Jan '11

18 Feb '11

1 day

17 Jan '11

17 Jan '11

5 days

18 Jan '11

24 Jan '11

Project Rationale

Water Resource Confirmation

PDAM Business Plan

Market, Technical and Safeguard Due Diligence

10
11
12

Scenario Definition and Risk Allocation Matrix

13

Financial and Economic Analysis

14
15

5 days

18 Jan '11

24 Jan '11

10 days

18 Jan '11

31 Jan '11

Legal Due Diligence

5 days

18 Jan '11

24 Jan '11

Detailed Output Specification

3 days

1 Feb '11

3 Feb '11

3 days

4 Feb '11

8 Feb '11

10 days

1 Feb '11

14 Feb '11

Investor and Financial Market Analysis

5 days

1 Feb '11

7 Feb '11

Government Support Analysis

5 days

1 Feb '11

7 Feb '11

16

Develop Tariff and Financing Structure

3 days

3 Feb '11

7 Feb '11

17

PDAM Performance Contract

3 days

8 Feb '11

10 Feb '11

18

Prepare Draft Term Sheet for Concession Agreement

3 days

11 Feb '11

15 Feb '11

19

Prepare Bid Implementation Plan

3 days

16 Feb '11

18 Feb '11

20
21
22

Deliverable 3: Presentation Final Business Case

STAGE 2: BID IMPLEMENTATION
Deliverable 1: Bid Documents

8 days

21 Feb '11

2 Mar '11

216 days

3 Mar '11

29 Dec '11

16 days

3 Mar '11

24 Mar '11

23

Prepare Draft Agreement and Supporting Documents

5 days

3 Mar '11

9 Mar '11

24

Prepare Draft Tender Guidelines

3 days

10 Mar '11

14 Mar '11

25

Prepare Draft Bid Documents

5 days

10 Mar '11

16 Mar '11

26

Establish On-Line Data Room

2 days

15 Mar '11

16 Mar '11

27

Detailed Bid Implementation Plan

3 days

17 Mar '11

21 Mar '11

28

PPP Agreement Management Plan

3 days

22 Mar '11

24 Mar '11

Project: Maros Schedule 1010

Date: 16 Nov '10

1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
1st Q
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Task

Rolled Up Task

External Tasks

Critical Task

Rolled Up Critical Task

Project Summary

Progress

Rolled Up Milestone

Group By Summary

Milestone

Rolled Up Progress

Summary

Split
Page 1

ID
29

Task Name
Deliverable 2: Assistance with Bid Process

30

Alert Potential Bidders

31

Pre-Qualification

32

Finalize Project Structure & Bid Evaluation Procedures

33

Duration
195 days

Start
25 Mar '11

Finish
Dec
22 Dec '11

5 days

25 Mar '11

31 Mar '11

25 days

1 Apr '11

5 May '11

5 days

6 May '11

12 May '11

Bidding for Project

65 days

13 May '11

11 Aug '11

34

Contract Negotiations and Award

30 days

12 Aug '11

22 Sep '11

35

Contract Post-Award Negotiations

20 days

23 Sep '11

20 Oct '11

PPP Agreement Signature and Financial Closure

65 days

23 Sep '11

22 Dec '11

5 days

23 Dec '11

29 Dec '11

36
37

Deliverable 3: Presentation of Final Report

Project: Maros Schedule 1010

Date: 16 Nov '10

1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
1st Q
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Task

Rolled Up Task

External Tasks

Critical Task

Rolled Up Critical Task

Project Summary

Progress

Rolled Up Milestone

Group By Summary

Milestone

Rolled Up Progress

Summary

Split
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