Professional Documents
Culture Documents
CITY OF JAKARTA
Multifunctional:
NationalCapital CenteroftheGovernment CenterofEconomicactivity y Diplomaticmissions
Geographical:
Locatedinalowlayingplain y gp 40%ofitsareabelowsealevel Traversedby13riversintoJakartaBay Areaof660km2
Population
9.2millionbynight,11millionduringtheday, Averagedensity:14.000persons/km2 Anumbersofethnicgroups(aportraitofIndonesia)
MAIN ISSUES
Flooding Trafficcongestion Traffic congestion Excessiveuseofland Provisionofinfrastructure Provision of infrastructure Urbanfacilitiesandutilities Environmentdegradation E i td d ti Theriseofpocketsofslumhousing
Transportation
Publictransport ;Bus,Railway. Networkdevelopment RoadNetwork,TolRoad. kd l TransportDemandManagement PortManagement,Airport. g , p
2.
SanitationSystem
Wastewatermanagement SolidWastemanagement
3. 4. 4 5. 6. 6
WaterSupply Electricity&EnergySupply Electricity & Energy Supply Communication FloodControl Flood Control
SUBSTANTIAL BARRIER
Howtoarrangetherequired financing
Availablefunding;Local Foreign Type;Loan(Longterm) CapitalMarket Financial Fi i l Scheme
Arethereanyregulatoryconstraints forLocalGovernmenttoaccesssuch finance? fi ? Istheresufficientcapacity within Is there sufficient capacity within LocalGovernmenttohandlesuch venture?
Capacity Building
Infrastructure Development
Regulatory Framework
Ourlocalcapacitycanaffordonly500millionUS$/year.
FINANCING SCHEME:
REGULATORY FRAME WORK : THE REGULATION FIT WITH THE LOCAL GOVERNMENTS NEED
RegulationmadebySectortoimproveurbaninfrastructure withinthecityandacrossadministrativeboundaries within the city and across administrative boundaries Busrapidtransit Urbanrailway Floodcontrol Water(cleanandtap) Sanitation
Harmonizationofregulation fromNational
Law,GovernmentRegulation,PresidentialDecree,Ministerial regulation,Localbylaws,GovernorRegulationtillMayororRegent Regulation Regulation
SoftloanwithCentralGov&JakartaGov.participation. S f l i hC lG & k G i i i CentralGov42%(OngrantingtoLG) LocalGov58%(OnLendingfromCG) NationalRegulationnotinFavor ReformnewLawonRailways ;derivedGovregulation,etc. OnGrantingprocesstoLocalGovernment Requirenew regulation OnLendingprocesstoLocalGovernment Requirenew regulation LocalGovernmentFinancingmechanism Requiresnewby Local Government Financing mechanism Requires new by Laws Landuseplanalongthealignmentneedtobeadjusted RequiresnewbyLaws. DevelopFiscalCapacitytosecureloanpayback(+) DevelopMRTCooperationtobuild,operateandmaintain thesystem. DevelopAccountingmechanismtosupporttheFund channeling. DevelopcapacityforimplementingPPPscheme.
REGULATORY FRAMEWORK
INSTITUTIONAL CAPACITY
CentralGovBudgetforConstruction&DKI Central Gov Budget for Construction & DKI JakartaBudgetforLandAcquisition. CentralGovernment50% LocalGovernment50% LawonLandOwnershiprequiresspecialnew Law on Land Ownership requires special new regulationforLandAcquisitionforPublic Facilities. FiscalCapacityforcostsharing. Legal capacity to execute Land Acquisition for LegalcapacitytoexecuteLandAcquisitionfor PublicFacilitiesneedtobeimproved. TransparencyonLanduseplanningandPublic consultationneedtobestrengthened Capacitytohandlesocialimpact.
REGULATORY FRAMEWORK
INSTITUTIONAL CAPACITY
CONCLUSION
Jakartaisexperiencingfastdevelopmentinthelast10years. Thereareneedsforfurtherdevelopment. Th d f f th d l t Infrastructureprojectsdevelopmentsconfrontedwithfinancing, regulatoryandinstitutionalcapacityconstrains. Severaloptionsareavailableforinfrastructuredevelopmentinclude MunicipalBond,PPP,InfrastructureFund. PPPschemeasoneofmodelthatsbeenrecognizedstillneedfurther improvement regulatoryframeworkshouldbestrengthenedto providestrongerbasisforprivateparticipation. FurtherexplorationtodevelopregulatoryframeworkforMunicipal bond,Infrastructurefundarestillneeded. b d I f f d ill d d Attentionshouldbegiventouniqueness ofeachprojectcharacteristics (incl.social/environmentalissues)todevisespecificfinancingstructure.. Sectorregulatoryframework needtobereorientedtowards Local/regionalurbanneeds. Whileweredoingallthehomework,DKIJakartagovernmentisstill workinginprogresspreparingseveralfutureinfrastructureproject.
ghank You
LOGIC
1. GAP between Need & Available 2. How we fill up the Gap
Local Government / Central Local / Foreign Loan
LoanfromtheWorldBanktoGov.ofIndonesia. CentralGov.OnLendingtoLocalGov.50% ForexRisk? PMU:Min.ofPublicWorks;PIU:JakartaAgencyofPublicWorks GovernmentRegulationNo.54/2005andNo.2/2006about FundChannelingtoLocalGov. Requireamendment. ResettlementPolicyFramework atLocalGovernmentlevel Resettlement Policy Framework at Local Government level unresolvedissuesduetodifferentparadigm. Differencesinmechanismtosolveaffectedassets(occupied illegalsettlers)forpublicinfrastructureproject;thecurrent g ) p p j ; LawandbyLawsmechanismarenotapplicable,WorldBank demanddifferentmechanism. ParisDeclarationonAidEffectivenessandWorldBankrequire q mechanismforIllegalSettlersassets,havedifferencesinthe implementation. D l i f d h Developingfundchannelingprocedure. li d Developingstrategytomanagesocialimpact.
REGULATORY FRAMEWORK
INSTITUTIONAL CAPACITY
JakartaLocalGovernmentannualbudget. RetributionfromJakartaresidence.
REGULATORY FRAMEWORK
ImplementingPresidentialDecreeno.80year2003about ProcurementGuidelines Procurement Guidelines HeadofCityCleaningDepartmentinstructionletter. Sharedworkingload;CityCleaningDepartmentisin chargeforwastecarryingtofinalwastedumpingsite;the ThirdPartyisinchargetomanagethewastemanagement throughlandfillmethod. through landfill method DevelopingTORforThirdparty Monitoringandsupervisionoftheprojectimplementation p g g g Developingmechanismtohavemorefinancingthrough CleanDevelopmentMechanismduetoMethane reduction.
INSTITUTIONAL CAPACITY
Governmentbudgetforinfrastructure(Roads,etc). Government budget for infrastructure (Roads etc) PrivatesectorisinvolvedforOMandBusProcurement LawonTrafficandTransport(LawNo.14) doesnot incorporateBusway requiresnewregulation,using LawNo.22/1999andGovRegulationNo.25/2000)we / g / ) developbyLawsno.12/2002aboutBusRapidTransit. FinallyLawNo.22/2009onRoadTrafficandTransportis issued. PricingPolicyforLowCarbonEnergy requiresnew i i li f b i initiatives Developingthecapacitytoprovidespecialbusservice Developing the capacity to provide special bus service NewOrganizationisestablishedrunthesystem. Developcapacitytoarrangeprocurementmethodto p purchaseservicesfromprivateoperators. p p Developprocedureforfundchannelingtoprovidesubsidy. Developthedevelopmentcapacityforserviceextension.
REGULATORY FRAMEWORK
INSTITUTIONAL CAPACITY
US$169,100,000.00
US$192,800,000.00
ConstructionofMRT;3 phases.