The World Bank
    Indonesia Infrastructure Guarantee Fund Project (P118916)




                                                                                  REPORT NO.: RES31198

                                     DOCUMENT OF THE WORLD BANK




                                          RESTRUCTURING PAPER
                                                   ON A
                                   PROPOSED PROJECT RESTRUCTURING

                                                       OF

                        INDONESIA INFRASTRUCTURE GUARANTEE FUND PROJECT
                                   APPROVED ON SEPTEMBER 11, 2012
                                                       TO

                                         REPUBLIC OF INDONESIA


FINANCE & MARKETS

EAST ASIA AND PACIFIC




                           Regional Vice President:     Victoria Kwakwa
                                  Country Director:     Rodrigo A. Chaves
                    Senior Global Practice Director:    Zoubida Kherous Allaoua
                       Practice Manager/Manager:        Jennifer Isern
                                Task Team Leader:       Kalpana Seethepalli
           The World Bank
           Indonesia Infrastructure Guarantee Fund Project (P118916)



I. BASIC DATA

Product Information

Project ID                                                     Financing Instrument
P118916                                                        Investment Project Financing

Original EA Category                                           Current EA Category
Full Assessment (A)                                            Full Assessment (A)

Approval Date                                                  Current Closing Date
11-Sep-2012                                                    31-Mar-2018




Organizations

Borrower                                                       Responsible Agency
Republic of Indonesia                                          PT Penjaminan Infrastruktur Indonesia (Persero)



Project Development Objective (PDO)
Original PDO
To strengthen the Indonesia Infrastructure Guarantee Fund (IIGF) as a single window institution to appraise
infrastructure PublicPrivate Partnership (PPP) projects requiring government guarantees.
Summary Status of Financing


                                                                                       Net
Ln/Cr/Tf                  Approval        Signing Effectiveness         Closing Commitment Disbursed Undisbursed

IBRD-81920             11-Sep-2012 19-Nov-2012      12-Jun-2013 31-Mar-2018             29.60        3.43        26.17


Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?
No


II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
           The World Bank
           Indonesia Infrastructure Guarantee Fund Project (P118916)



 As indicated in the recent ISR, overall implementation of IGFP continues to progress well. IIGF has been relatively
 active in supporting the development of PPP projects in Indonesia through the provision of guarantees and has played
 an important catalytic role as a provider of advice to government entities entering or considering PPP activities. IIGF
 also continues to strengthen its institutional capacity to appraise PPP projects seeking government guarantees and has
 processed a
 number of projects through various stages of the guarantee lifecycle, while operating in accordance with international
 standards, including those related to environmental and social safeguards.

 Nonetheless, key challenges remain to be addressed, which necessitate the extension of project closing date. As
 disbursements under the TA component had been relatively slow, more time is needed to allow for full disbursement
 of the component, as a number of key TA initiatives have started to pick up and are expected to progress further
 within the next months. The guarantee component has not yet been disbursed, although this had always been
 envisaged, given that disbursements would take place only if IIGF guarantees that are backed by the WB are called for
 payment. The proposed project extension would not only provide more time for TA disbursements, but also facilitate
 IIGF in expanding its business model further, both for advisory services and guarantee; thereby enabling it to play a
 more strategic role in transforming the Government's infrastructure policy ambitions into market-based outcomes.




III. DETAILED CHANGES


LOAN CLOSING DATE(S)


                                         Original                Revised              Proposed       Proposed Deadline
Ln/Cr/Tf         Status                  Closing               Closing(s)               Closing         for Withdrawal
                                                                                                           Applications
IBRD-81920       Effective          31-Mar-2018                                    31-Dec-2018              30-Apr-2019