5.1.  Solicited Proposals

Figure 3. The Project Pipeline for Solicited Proposals

For solicited proposals, the PPP Project Pipeline consists of three phases, namely Planning, Preparation, and Transaction. The duration of time needed for this pipeline is varied from 18 months to 36 months.

Figure 3 shows the interrelation between the three phases of the PPP Projects Pipeline. The three phases are straightforward phases, each of them consists of another sub-process. Each of this step has their own function and not to be avoided.

Planning phases consist of Project Identification and Preliminary Study. The first step is used to choose a viable PPP project from a list of projects. Then, during the second step, the project will go through a series of qualitative studies to know if the project is suitable for PPP process. In general, Planning phases will take 3 to 8 months to finish.

In the Preparation phase, the project will undergo quantitative studies in order to see the viability of the PPP projects, in term of financial value, economic value, risk analysis and mitigation, et cetera. In this phase, private sectors were invited to give input in Public Consultation and Market Sounding. For both of the mentioned above phases, the underlying regulation is National Planning and Development Minister Regulation no 4/2015. In general, it will take 6 to 8 months to finish the preparation phase.

Transaction phase is the last phase which facilitates the project through a transaction, which includes Prequalification, Request for Proposal, Bid Award, PPP Agreement Signing, and then Financial Close. It will take 4 to 8 months to finish the transaction phase.