Public Disclosure Copy The World Bank Implementation Status & Results Report Indonesia Infrastructure Finance Facility (P092218) Indonesia Infrastructure Finance Facility (P092218) EAST ASIA AND PACIFIC | Indonesia | Finance & Markets Global Practice | IBRD/IDA | Financial Intermediary Loan | FY 2009 | Seq No: 11 | ARCHIVED on 12-Oct-2016 | ISR25064 | Implementing Agencies: PT Indonesia Infrastructure Finance Key Dates Key Project Dates Bank Approval Date:24-Jun-2009 Effectiveness Date:25-Apr-2011 Planned Mid Term Review Date:17-Jun-2012 Actual Mid-Term Review Date:18-Jul-2012 Original Closing Date:31-Dec-2013 Revised Closing Date:30-Nov-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to strengthen and further develop the institutional framework of the financial sector to facilitate financing of commercially viable infrastructure projects and thereby increase provision of private infrastructure in Indonesia. Key performance indicators to judge PT. IIF's success include the following outcomes: (i) increase in the number of commercially viable infrastructure projects achieving financial closure through long-term debt financing, other financial products, and advisory services from the IIFF over the life of the project; (ii) Increase in the amount of private capital (including long-term debt and equity) available for infrastructure projects over the life of the project; (iii) Increased support to government#s policy making in private provision of infrastructure through advisory services from IIFF; and (iv) Increase in privately financed infrastructure in Indonesia. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name On-lending of Bank loan to eligible infrastructure projects:(Cost $100.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Low  Low 10/12/2016 Page 1 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Indonesia Infrastructure Finance Facility (P092218) Implementation Status and Key Decisions The IIFF project implementation continues to progress well, with almost the entire US$100 million existing loan funds having been disbursed. As of end March 2016, IIF has total commitments of US$413 million equivalent, of which investments/ loans are US$315 million. IIF is growing its loan portfolio by focusing on higher quality assets. Along with the declining interest rate environment overall, this is expected to lead to reduced margins. IIF anticipates that this would need to be balanced by increasing its lending volume, particularly in more profitable junior loans such as mezzanine, equity, and other innovative products, and also increasing its leverage. IIF also expects to build its syndication and advisory team, and promote more strategic alliances with other financiers, in order to strengthen its revenue base further. IIF reiterated to the mission its funding needs to support its medium-term growth strategy. IIF advised its successful bond issue raising approx. IDR 1.5 trillion. In addition, IIF is seeking US$300 million funding through WB and ADB financing. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Low  Low Sector Strategies and Policies  --  Low  Low Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Low  Low Fiduciary  --  Low  Low Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Low  Low Results Project Development Objective Indicators 10/12/2016 Page 2 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Indonesia Infrastructure Finance Facility (P092218) PHINDPDOTBL  Increase in the amount of financing from Bank funds provided by the IIFF to commercially viable infrastructure projects through long-term debt financing and financial products over the life of project (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 99.88 99.88 100.00 Date 27-Mar-2009 30-Nov-2015 31-Aug-2016 30-Nov-2015 PHINDPDOTBL  Increase in the amount of private capital (including long-term debt and equity) available for infrastructure projects over the life of the project (values in USD million). (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1800.00 6671.18 0.00 Date 27-Mar-2009 30-Nov-2015 31-Aug-2016 30-Nov-2015 PHINDPDOTBL  Increase in number of privately financed infrastructure projects made bankable through the IIF’s advisory services (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 27-Mar-2009 30-Nov-2015 31-Aug-2016 31-Dec-2013 Overall Comments 1. Of the US$100 million WB loan, US$99.88 million have been withdrawn and disbursed to IIF infrastructure projects. 2. Indicator 2 includes the total amount of financing received by IIF subprojects, some of which are part of larger syndication deals involving other private financiers. 3. At the transaction level, IIF received five advisory mandates, four of which are still ongoing and have not yet reached financial closure, and one that has been stopped by the client (PLN). Five additional mandates are expected in the coming months. At the policy level, IIF continues to provide ongoing advisory support to GOI’s policy decision making related to PPP and infrastructure financing. Intermediate Results Indicators 10/12/2016 Page 3 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Indonesia Infrastructure Finance Facility (P092218) PHINDIRITBL  Infrastructure sub-projects financed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 23.00 0.00 Date 26-Nov-2012 30-Nov-2015 31-Aug-2016 30-Nov-2015 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P092218 IBRD-77310 Effective USD 100.00 100.00 0.00 99.88 0.12 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P092218 IBRD-77310 Effective 24-Jun-2009 15-Jan-2010 25-Apr-2011 31-Dec-2013 30-Nov-2016 Cumulative Disbursements 10/12/2016 Page 4 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Indonesia Infrastructure Finance Facility (P092218) Restructuring History Level Approved on 22-Oct-2013 ,Level 2 Approved on 30-Nov-2015 Related Project(s) P154779-Indonesia Infrastructure Finance Facility - Additional Financing 10/12/2016 Page 5 of 5 Public Disclosure Copy