Closing MCC’s Procurement Modernization Project – 2018

Public – Private Partnerships (PPPs) Activity – Highlights 

Our story in Indonesia started with XS-Axis Consulting being selected as the Strategic Advisor for the Procurement Modernization (PM) Project with Government of Indonesia in a multi-million Compact funded by Millennium Challenge Corporation (MCC), United States of America. The Project aims at a particularly ambitious objective of improving the effectiveness and efficiency of the Indonesian public procurement system to complex types of projects , including Public-Private Partnerships (PPPs).

Thus, a PPP Sub-Activity was set up in the scope of Policy and Procedure Development to support the preparation of standardized guidelines as Model Bidding Documents (MBDs) for competitive tendering of PPP projects. We, as Strategic Advisor, advised and supported in the development of practical toolkit with templates and model documents for PPP procurement planning and project preparation.

The purpose of this review is to share with you highlights of our achievements following the close of the PM Project in April 2018.

Advise on Indonesia’s PPP Policy and Procurement Procedures

The PPP Activity started with a thorough review of Indonesia’s attempts in implementing PPP procurement for provision of infrastructure assets and service delivery. We identified  challenges related to the existing legal and institutional framework including PPP procurement procedures and conducted a Gap Analysis in 2014 until February 2015. It was widely recognized that the challenges did not only concern the launching of actual procurement, but also were inter-linked with the legal and institutional frameworks, where XS-Axis Consulting provided recommendations and a concrete action plan. Upon submission of the Gap Analysis in February 2015 and recommendations provided, XS-Axis Consulting developed a more detailed PPP Implementation Program aimed at refining LKPP’s PPP Procurement Policies and Procedures —  Read More!

The Gap Analysis was well received by  MCC in terms of the depth of the evaluation conducted and the methodology applied, and more importantly the roadmap which was laid out for an action plan in terms of next steps and range of activities. By the end of the Compact, XS-Axis Consulting as the Strategic Advisor was able to support the Client in achieving the agreed short-term and immediate outcomes.

Advise on PPP Piloting Program and Standardization of PPP Bidding Documents

The PPP Implementation Program put a focus on the identification of a series of Pilots as testing ground for the implementation of LKPP Perka 19/ 2015.  The approach was to start a Piloting process to test the Procurement Procedures of LKPP newly introduced, next to the development of each project’s bidding document. A total of 4 Pilots were selected, after considering the preliminary evaluation of each project’s “readiness” based on Bappenas Regulation No. 4/2015:

Pondok Gede Bekasi Water

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Bandung Street Lighting

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West Java Waste to Energy Water

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Batam Hang Nadim Airport

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XS-Axis Consulting provided support needed in the actual preparation processes of these selected Pilots. Our performed activities include development of guidelines for the application of procurement procedures and the testing needs to be based on full-fledge feasibility studies relying on the engagement with stakeholders through stakeholder dialogues.  XS-Axis Consulting and consultants from MCA-Indonesia’s team developed relevant materials, and documentation for each Pilot including the bidding documents and relevant templates. The objective was to further improve these bidding documents and develop into sector-based standardized model bidding documents (MBDs) with toolkits designed for practical implementation — Read More!

The design and development of MBDs set for the sectors of Pilot projects were successfully delivered. Four MBDs all entail detailed manual and guidance note to provide information and instructions on how to apply the sector MBD throughout the actual implementation of Procurement.

Capacity Building Training and Train-of-Trainers Program

Along with the target set to develop sector MBDs for PPP projects, the PPP Sub-Activity’s target was to build a platform to share knowledge on PPPs with the Government Contracting Agencies (GCAs) of the Pilots and relevant Ministries as well as the Procurement Agency. Thus, a Capacity Building Training program was designed, next to a Train-of-Trainers program activity to deliver 2-3 days Basic and Intermediate classes to each of the Pilot’s GCA and additional ad-hoc classes  upon demand of the indented participants. A total up to over 135 attendees participated in the training programs. XS-Axis Consulting  supported in the preparation and assessment of all materials desgined for the training courses, including the content, topics, case studies to be presented.  Participants were actively engaged with facilitators during discussion activities and case studies, and were able to follow the structure of training materials.

Next to the delivery of training programs, a PPP Study Tour as linking activity between both programs was successfully carried out for 30 participants from Government counterparts. The Study Tour was a turning point for LKPP and the GCAs to understand the rationale behind a fast track, but staged approach of PPP procurement and the attendees obtained an interesting cross-sector overview of how PPP procurement is conducted in European countries. It was thus successfully delivered by MCA-Indonesia team of consultants from May 6th to May 16th, 2017, in which we received positive feedback from most participants.



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