Assignment Description

The Public Private Partnership (PPP) Sub-Activity under the Policy and Procedure Development Activity is a part of the Procurement Modernization Project –¬† a multi-million Compact funded by Millennium Challenge Corporation (MCC) for a period of 4 years (from 2014 to early 2018). The PPP Sub-Activity has geared towards facilitatation and establishment a comprehensive capacity building program next to promoting a Multi-Stakeholder Dialogue Framework for the relevant stakeholders including BAPPENAS as the Planning Ministry, Ministry of Finance (MoF), CMEA as the Coordinating Ministry of Economic Affairs, Ministry of Home Affairs (MoHA), and IIGF and others.

A Study Visit was designed as an opportunity to link the activities related to PPP Multi-Stakeholder Dialogue with the Capacity Building Program to assure sustainability based on the recognition that Goverment Contracting Agencies (GCAs) and Indonesia’s National Procurement Office (LKPP) would best learn from practical experiences, and would then be able to promote PPP projects better in terms of the underlying procurement processes.

This Study Trip was designed with a focus on rendering visits to 3 European counties with long-standing experience in implementing PPP schemes across those sectors that are relevant to the MCA-I PPP Pilots, and beyond. Europe was the prime target since it has long been recognized that PPPs serve as a procurement tool much more than being used as financing methods/tool for delivery of private infrastructure and services.

Activities

This Study Visit provided a unique opportunity to stakeholders including LKPP, GCAs officials, and representatives  to get a pragmatic encounter with the procurement methods applied throughout the actual implementation of similar PPP projects as those currently being implemented under the MCA-I Sub-Activity. Our Managing Director was able to lead the consulting team o arrange the sites for participants to visit across 3 countries that were actual PPP sites, ranging from economic infrastructure to social sector (airport, street lighting, waste, school, hospital, etc.) with a prime focus on lessons to be learned throughout the life cycle of a PPP starting with planning and preparation and procurement stages to the actual contractual management phase. There was a high focus on getting both public and private sector views heard and convey the various methods applied to procure including key instruments for procurement of complex PPPs such as dialogue and negotiations, and transparency throughout the evaluation of PPPs.

Participants  had a chance to foster stakeholder dialogue among themselves about future promotion of the Indonesian PPP Ecosystem. Several discussion sessions were planned in the aftermath of each of the site visits, and experts were be invited to elaborate on the European experiences across specific topics such as output specification, negotiations, and managing market expectations.