Developing Infrastructure Projects

1. Developing Infrastructure Projects

2. Contents • InfraCo • Infrastructure Project Development • InfraCo’s Role • How InfraCo Operates • InfraCo in Indonesia

3. InfraCo • Privately managed infrastructure project development company backed by European donor countries* and World Bank • Operating in Africa, South Asia and South East Asia primarily in power, transportation and water sectors • Will create privately financed infrastructure projects balancing the interests of host governments, private sector investors and sources of project finance *PIDG – Holland, Sweden, Switzerland and UK

4. Infrastructure Development • Projects require careful structuring to secure implementation, e.g.: • Demand risk • Regulatory risk • Exchange rate risk • High upfront costs involved in early stage development can deter developers • Government efforts to attract private sector frequently unsuccessful

5. time Identify possible opportunities Pre-feasibility studies (markets, costs, regulation) Negotiate regulatory contract Negotiate input supply agreements Negotiate offtake agreements (volumes, price) Negotiate contractual subsidies Secure rights to land, facilities, consents Negotiate local partnership agreements Commercial structuring to manage risks Full business and financial plan Arrange third party finance Infrastructure Development • Early stage infrastructure development is a complex, protracted and risky process

6. InfraCo’s Role InfraCo will • Shoulder much of the upfront costs of early stage project development • Secure in-principle commitments from providers of finance to support investments subject to entry by a competent private sector sponsor • Prior to financial close, offer structured investment opportunities to private partners

7. How InfraCo Operates • InfraCo will be compensated for its time, efforts and costs by incoming private sector sponsors Three stages for involvement • Early stage projects • Later stage projects • Existing assets

8. How InfraCo Operates InfraCo works with • Client governments and agencies • Project development partners – national and international • Sources of finance – commercial, multilaterals and others

9. InfraCo in Indonesia • Key country for InfraCo operation • Will work in all sectors and all regions • Initial focus on greenfield and expansion projects • Will work with governments and development partners

10. Tony Clamp Director tony.clamp@infracolimited.com Contact