INDONESIA INFRASTRUCTURE FINANCE DEVELOPMENT - IIFD

TERMS OF REFERENCE (TOR)

DEVELOPMENT FOR PUBLIC PRIVATE PARTNERSHIP IN WASTE MANAGEMENT
SECTOR FOR MANGGAR WASTE MANAGEMENT

OCTOBER 2020

A. BACKGROUND
1. As stipulated in the Presidential Regulation Number 97/2017 about the national strategic policy of
domestic waste management, it is mandated 100% of garbage is managed in 2025 (Indonesia Bersih
Sampah) which is measured through the reduction of waste by 30% and waste handling of 70% in
2025.
2. Municipality of Balikpapan is committed to environmental management, especially waste
management. This is evidenced by the achievement of the Adipura award by the Government of
Indonesia for 21 times. To maintain this commitment, Balikpapan has a regional strategic policy
document for domestic waste management. It is obliged by the Governor Regulation of Balikpapan
Number 38/2018.
3. The population of Balikpapan in 2019 is 655,178 people. The number increases by 2.93% from 2018.
In line with this condition, the waste production number increases by 3% in 2019.
4. The government’s announcement regarding the New Capital City of Indonesia in Penajam Paser
Utara Regency (PPU) and Kutai Kertanegara Regency, makes Balikpapan City be the main buffer of
the New Capital City. As one of the major cities in East Kalimantan province, Balikpapan potentially
provides supporting infrastructure to the New Capital City. This situation will increase the
investment, development, as well as the population growth that is expected to reach 2-5 million
inhabitants. Thus, the amount of garbage is predicted to increase by 3 to 7 times.
5. Waste management includes collecting, processing, transporting, and final processing. Collection and
transport are implemented by the Municipality of Balikpapan by a conventional method such as
sweeping and transporting with the open trucks. Those methods caused inefficiency in the operational
cost. The waste processing uses Intermediate Treatment Facilities (ITF) with a capacity of 10
tons/day and Material Recovery Facilities (MRF) with a capacity of 10 tons/day. Both facilities are
able to serve one village and one market. Furthermore, Balikpapan City has a landfill (TPA-Tempat
Pembuangan Sampah Akhir) located in Kelurahan Manggar with a total area of 49.89 Ha.
6. TPA Manggar is divided into 7 zones equipped by a sanitary landfill system. 4 zones have been
full/inactive, zone 5 is the active zone, and zone 6-7 is the waiting zone (figure 1). TPA Manggar is
expected to reach its maximum capacity in 2028. However, there is no additional land available for
expansion purposes in the current location. Hence, the study to seek alternative technology for waste
management is critical for Balikpapan City.

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 Figure 1. TPA Manggar Zoning Plan

7. New waste treatment technology is required in order to create better environmental quality and to
extend the life span of TPA Manggar. However, the Municipality of Balikpapan has a limited budget
to finance the project through the city budget (APBD – Anggaran Pendapatan dan Belanja Daerah).
To overcome this, the Municipality of Balikpapan and the Directorate of Settlement Infrastructure
Financing (DSIF), MPWH propose the alternative finance scheme through Public-Private
Partnership (PPP) for the waste management sector. The DSIF plans to develop an Outline Business
Case (OBC) as the requirement document of pilot PPP projects in the waste management sector.
8. This assistance is expected to be supported by the Indonesia Infrastructure Finance Development
(IIFD) for PPPs. The IIFD is a multi-donor trust fund, being managed by the World Bank, with
funding support from the Department of Foreign Affairs and Trade for Development (DFATD) of
the Government of Canada (IIFD TF). The MOF’s PPP Unit is the recipient of the RETF. The
outcome of this activity closely links to the objective of the IIFD, which is to accelerate the
implementation of PPP projects and contribute to the efficient and effective infrastructure spending.

B. OBJECTIVES OF THE ASSIGNMENT

1. The purpose of this activity is to support the Municipality of Balikpapan in preparing the Outline
Business Case (OBC) of the PPP Project for Waste Management in Manggar, East Kalimantan,
which will include a comprehensive study of waste handling in the city of Balikpapan from waste
collection stage, to final processing. TIn addition, this activity is expected to include public
consultation, preliminary market sounding, and capacity building for mainly the PPP team of
Government Contracting Agency (GCA) and other required stakeholders. The main output of this
assignment is an inclusive analysis of the proposed PPP project and assessing the feasibility of the
PPP by considering at least the legal, technical, economic, financial, risk management, environmental
and social aspects, PPP structure study, government support study, and outstanding issues and series
of sound options for policymakers in implementing the project.

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C. SCOPE OF ACTIVITIES AND OUTCOMES
The assignment shall be conducted in two stages. The first stage will be to prepare a Preliminary Study
and conduct initial stakeholder / public consultations. After the approval of the Prelininary Study by the
GCA, the consultant shall initiate the activities of the second stage related to preparation of the Outline
Business Case (OBC) and related market consultations. The Consultants shall consider the use of green
technology for each relevant activity, as this project is considered as one of pilot green waste management
projects in Indonesia. These are described in the following
1. Developing a Preliminary Study.
As a precursor to the OBC, the consultant shall prepare a Preliminary Study of the project as per the
the applicable regulations of the Ministry of Planning. The Preliminary Study shall include the
following:
a. Needs assessment
b. Concept of PPP Project Scope
c. Preliminary Cost-Benefit Analysis
d. Compliance Criteria
e. Criteria for determining factors Value of Money Benefit of business entities participation.
f. Analysis of revenue potential and project financing schemes;
g. Preliminary testing on PPP Suitability and affordability
h. Identifying Stakeholders and Developing the Communication Strategy
i. Recommendations and follow-up plans incorporating:
1. Recommendation on the form of PPP;
2. Recommendation of the main criteria in the selection of business entities; and
3. A project management plan including a planned schedule for PPP preparation and
transaction activities

2. Conducting Public Consultation

The Public Consultation will be conducted at least but not limited to in compliance with the Ministry
of Planning regulation No. 2/2020. The Public Consultation shall analyses and provide, but not
limited to, the following criteria:
a. Introduction
1) Describe the PPP Project, issue or problem address
2) Provide general project details including a spatial map of the proposed location, nature of the
project, size, schedule and estimated budget
b. Purpose
Goals and objectives (how input will feed into the planning and design of PPP Project)
c. Stakeholder Identification
1) Define who will be engaged
2) List community stakeholder groups targeted during engagement community stakeholder
mapping and rationale for mapping based on interest and influence.
d. Methods of Engagement
Describe the proposed approach and methods of engagement
e. Issues Tracking and Grievance Process
1) Describe the process for receiving and responding issues and complaints
2) Develop blank issues tracking table to fill in as the project progresses

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 3) Describe a grievance management process for complaints
f. Reporting
Accurately recording community feedback, and accessible for government, community, and other
relevant stakeholders. Final Public Consultation Report contains of this following section, but not
limited to:
1) summary section,
2) overview of issues,
3) methods used for engagement,
4) summary of the actual engagement meetings or events,
5) analysis of results and recommendations, costs, next steps

The results of the Public Consultation shall provide, but not limited to, the following information:
a. Confirmation of services needed by the community
b. Input on design and development plans from individuals, groups and organizations.
c. Inputs and suggestions related to the Project Plan whether technical, legal or financial that can be
considered by the GCA in preparing the PPP Project.
d. Confirmation of willingness to pay (if user pay) based on estimated level of Availability to pay

3. Developing Outline Business Case (OBC)

The OBC shall be developed in compliance with prevailing regulations (mainly Ministry of Planning
regulation Number 2 / 2020) and required considerations from Client. Below the steps of activities on
developing the Outline Business Case. During the completion of the OBC, the formulation of
recommendations in the OBC shall be approved by the Client. Hence, schedule of meetings will be
required to be proposed by the Consultant in the Work Plan.

The OBC shall analyze and provide, but not limited to, the following information:

1. Executive summary. Summary shall describe concisely and systematically the waste management
problems faced by the GCA, the project’s objectives to address the problems, the preferred and
agreed technical solution to satisfy the project’s objectives, the economic benefits underlying the
project’s investment decision, and the value for money drivers of the project justifying the PPP
suitability of the project. Furthermore, Executive summary also has to disclose the investment
cost of the project as the result of the preferred and agreed technical solution and the amount of
tipping fee contribution or budget allocation that the GCA is willing to pay/allocate. Finally, upon
the information, the summary has to highlight the project’s financial viability and options to
move forward the project business case project structure and revenue and financing structure

2. Project’s Background. The OBC shall examine all of the relevant general information of the
GCA, including geographical information (area of the city, population, etc.), economic
information (regional GDP, economic growth, industries nearby the city that could be the
potential off taker of the facility’s products), and the GCA’s administration information (the
mayor with its administration period, districts will be served by the project, the GCA’s APBD for
the last five years including the local revenue/Pendapatan Asli Daerah, and projects the GCA
currently has – on going and/or in coming projects.

In addition, the OBC shall describe the current waste management. This is started with explaining
the targets stated in the Jakstrada (if any). Then, OBC shall explain the waste management the

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 GCA currently do in all activities: segregation, collection, transportation, processing, and final
disposal; reflecting the supply chain of the waste. The explanation shall discover the waste
volume managed in those activities, facilities the GCA provides, the parties involved in those
activities, business process of those activities, and budgets the GCA has been allocated for those
activities for the last five years, including retribution the GCA collects (total retribution per year
for the last five years and retribution per family) and the regulation underlying the retribution
collection.

Based on the current waste management, the OBC shall identify the problems faced by the GCA
in all of those activities including the impacts of the problems on the people and environment.
Upon the problems, OBC shall state the improvement of the waste management services the GCA
expect to happen by the project and based on it, the OBC shall define the objective of the project
that is agreed by the GCA.

The OBC should clearly articulate the need for the project based on a comprehensive analysis of
current state of service and infrastructure, as well as the future needs. Among other areas, the
OBC should be able to provide adequate justification for the following:
(a) What is the case for change, including the rationale for intervention?
(b) What is the service need?
(c) What is the current situation?
(d) What is to be done? What outcomes are expected?
(e) How do these fit with wider government policies and objectives, including health sector plans
and strategies?
(f) What is the target group of beneficiaries?
(g) Who are the key stakeholders?

3. Demand Assessment. The scale and scope of the project, as well as inputs into the strategic needs’
assessment, should be based on a comprehensive market and demand analysis. In case of existing
waste management and landfill facilities, the consultant shall conduct a series of structured
interviews with facility staff and other stakeholders to better understand the current constraints
and challenges. It should cover, among others, the following:
(a) Population demographics
(b)Review of waste value chain including waste collection, transportation, processing and
landfilling activities, including 3R, treatment, and end-disposal.
(c) Waste generation estimation, including the increase number due to impact of New Capital
City development.
(d) Waste characterization study. The consultant shall conduct a survey of actual waste
composition being handled. This will be useful in proposing specific waste treatment solution.
The waste composition will be required for evaluating different technologies of waste treatment
facilities.
(e) Assess the existing fee structure in the waste management cycle, including the current levels
of tipping fee and other sources of revenues; in consultation with Municipality of Balikpapan and
other relevant stakeholders and based on existing and planned regulations
(f) Identification of key risk issues related to estimated demand and competition
(g) Recommendations for the proposed project’s scale, scope and nature of facilities

4. Legal, Regulatory and Institutional analysis. The consultant shall undertake a comprehensive
analysis of existing regulations in relation to PPPs, relevant sector legislations and regulatory
framework applicable to waste management and as well as provincial and local government
regulations applicable to the implementation and functioning of the project. In addition, the
consultant shall examine all other applicable laws and regulations that have an implication on the

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 project, such as taxation, investments, land acquisition, use of state assets, environmental and
local development control regulations. This is not an exhaustive list and the consultant is
expected to keep themselves updated on the legal and policy developments in Indonesia to inform
the preparation of the OBC.

The OBC shall describe the following analysis:

(a) Ensuring that PPP is implemented in accordance with statutory regulations relating to aspects:
1) Establishment of business entities
2) Capital investment
3) Business competition
4) Environment
5) Social
6) Work safety
7) Land acquisition
8) PPP financing, including financing and revenue mechanisms
9) PPP permission
10) Taxation
11) Other relevant regulations
(b) Determine legal risks and mitigation strategies
(c) Review the possibility of improving the laws and regulations, or the issuance of new laws and
regulations for solid waste management related to provisioning of services, developing, and
managing facilities, environment, land and location of facilities, social aspects, etc.
(d) Determine the types of permits/approvals needed
(e) Prepare a plan and schedule to meet the regulatory and legal requirements based on the study
in number d.
(f) Ensure the authority of the Minister/Head of Institution/Regional Head/Directors of State-
Owned Enterprises/Directors of Regional-Owned Enterprises as GCA in implementing PPP,
including the determination of GCA in multi-infrastructure projects
(g) Conduct a stakeholder mapping by determining the roles and responsibilities of the institutions
involved in the implementation of the PPP
(h) Determine the roles and responsibilities of the PPP Team in relation to the activities of project
preparation , as well as determining the PPP Team's reporting system to the PJPK
(i) Determine and prepare institutional regulatory instruments
(j) Identify key issues for decision making. This shall conclude with a comprehensive legal
analysis, including the regulatory issues arising during the analysis

5. Technical analysis. The consultant shall examine the site and current state of existing facilities
and prepare a conceptual plan for proposed development. The plan should provide in sufficient
detail the scale and scope of the project facilities, computations related to capital expenditure and
operational expenses, as well as maintenance and equipment replacement details. This should
include, among others, the following:

(a) Conduct an assessment of the project site(s) and land issues, including:
1) Undertaking multiple field visits to enhance the consultant’s understanding towards the
projects.
2) Analysis of the provincial/ local master plan, applicable development control regulations,
latest building bye-laws and other applicable laws and provisions
3) Analyse the suitability of site(s), to include assessment in terms of proposed boundaries,
area, topography, accessibility, logistics, environmental, geo-technical, social, suitability
towards any hazards.

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 4) Assess the land title and topographical mapping of sites identified by the government for
waste management implementation. Coordinate with the GCA and relevant communities
to examine land availability and related rights.

(b) Technology options assessment, including:

1) Review waste management implementation standards and services to be provided by
private sector, in consultation with Directorate of Settlement Infrastructure Financing,
Municipality of Balikpapan and other relevant stakeholders. This should aim at
establishing a minimum level of service standards expected.
2) Review various alternative technologies for waste management, including 3R, material
recovery, composting, intermediate waste treatment and final disposal of inerts and other
waste material.
3) Recommend suitable technology options that would optimize waste management
facilities at the proposed site.

(c) Conceptual design and site plan for the proposed project, including:
1) Determination of the output capacity and operational standards required, and prepare a
preliminary conceptual design (site layout plan with appropriate 2D and 3D conceptual
drawings) that is technically feasible
2) Description of the nature, scope and scale of waste management and disposal facilities
3) Determination of requirements for internal infrastructure and utilities

(d) Estimation of capital expenditure and other life cycle costs, including:
1) Provide preliminary cost estimates for site development, in line with the proposed
technology option(s), as well as suggested scheduling and phasing of works.
2) Provide estimated cost of land acquisition (If needed) with various options, including
plans and schedules for implementing the land acquisition and resettlement program (If
needed)
3) Provide broad estimates for the operations and maintenance expenses for the project
facilities.
4) The costs should be benchmarked to comparable technologies and projects, within and
outside Indonesia and mapped to the comparable performance standards / output
specifications as those proposed for the project.

(e) Minimum technical and operating performance standards/output specifications to be specified

for the private partner, including:
1) Minimum service standards which include quantity, quality and availability, and
performance monitoring arrangements during construction, operations and exit /transfer.
2) Action plan for local waste handling.
3) Indicative schedule for construction work and equipment supply.
4) Compliance with environmental, social and safety issues.
5) Requirements for transfer of assets in accordance with the PPP agreement.

6. Economic analysis. This should focus on the identifying, analysing and quantifying (as
appropriate) the economic costs and benefits of the project to the society as a whole over the
entire period covered by the project. This should be a mix of qualitative and quantitative analysis.
The qualitative analysis should make references to international and national studies related to
socio-economic impacts and then clearly articulate the key aspects in relation to the project. The
quantitative analysis should compute the year-wise economic costs (-) and benefits (+) and should

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 be reflected in terms of Economic Rate of Return (ERR) and Economic Net Present Value
(ENPV) terms. Towards this end, the following should be considered:
1) Comparison of the costs and benefits with and without the project. Costs referred to in
number 1 are based on constant prices, which include:
- PPP preparation cost;
- Capital costs;
- Operational costs;
- Maintenance costs; and
- Other costs resulting from the project.
2) Assessment of project benefits for the community and country by considering at least:
- Savings by the community; and
- State Budget savings obtained.
3) Determination of economic costs by changing financial prices into economic prices
(shadow prices) for each input and output based on an appropriate economic conversion
factor
4) Determination of economic benefits by quantitying the benefits
5) Computation of economic assessment parameters are carried out through the ERR and
ENPV approach using an economic or social discount rate
6) Undertaking a sensitivity analysis to assess the effect of uncertainty on PPP
implementation on the project's economic viability

7. Financial analysis. The model for financial evaluation of the proposed Project shall be developed
to reflect two dimensions: (i) the financial flows from the GCA’s point of view, and (ii) the
financial returns from a potential transaction point of view. The first is intended for the GCA to
gauge the financial impact on its finances of the proposed investment program. The second
dimension represents the perspective of the potential private operator to measure the value of the
business encompassed in a transaction for private sector investment. The analysis should include:
1) Estimation of various realistic demand scenarios, with different combination of
decentralized (including, 3R) and end-phase SWM handling, including clear mapping of
the waste management value chain from collection, transportation, treatment and end-
disposal.
2) Identification of various revenue sources, tariffs (tipping fee), adjustment mechanism, and
reference index to make adjustments to the parameters used during the PPP agreement
period
3) Computation of corresponding life cycle costs, such as capital expenditure, operations and
maintenance costs, and other pre-operative and operative costs, with respect to various
technology options and project development options. This should also include, estimates
of other costs related to PPP including the costs of resettlement, environmental
maintenance, licensing, and indirect costs (management overhead costs), and risk
mitigation costs, among others.
4) Calculation of break-even points (pay-back period) and standard financial indicators (incl.
NPV for Project and Equity, ROI/Return on Investment, ROE/Return on Equity,
ICR/Interest Coverage Ratio, and DSCR/Debt Service Coverage Ratio), as well as
appraisals of the robustness of financial returns in light of possible unfavourable future
market/demand and cost trends and the absence of alternative funding sources. The
analysis should identify the most promising project for a future PPP transaction.
5) Assessment of the merits of the various PPP schemes (e.g. DBFOT, Viability Gap
Fund/VGF, Availability Payment/AP, hybrid models, etc.) for the proposed PPP projects
using both commercial and soft-loan options in accordance with risk, financial returns,
timing effects on the PPP transaction, GCA and government capability/affordability to
undertake the various PPP schemes, the certainty of the transfer of managerial and

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 technical skills of the private partner to the public sector, and other criteria developed by
the Consultant.
6) Develop various alternatives options on the level and form of government support, to
assist the government in deciding an appropriate option to take forward.
7) Preparation of financial projections in terms of income statement, balance sheet, cashflow
statements for the cooperation period, for the PPP project.
8) Sensitivity and risk scenario analyses. A scenario modelling approach is preferred, and the
scenarios to be tested shall be confirmed with the GCA.

8. Value for Money analysis. The financial analyses results shall be used as inputs into the Value for
Money/VfM analysis to be prepared by the Consultant as part of this task. The consultant can
refer to the previous work done under the IIFD program and by the World Bank, and other
international best practices. VfM analysis refers to comparison among project options mainly of
PPP and public investments.

9. Fiscal Affordability. This is another critical area to assess for the GCA. What are the immediate
and future direct and indirect fiscal implications of the project on the GCA, and whether the GCA
would have sufficient financial flexibility to absorb incremental costs, if any. The consultant will
analyse the financial statements of the GCA and make suitable fiscal projections to undertake this
task. The consultant should also assess the fiscal capacity of the GCA by using the formula
regulated in Ministry of Finance Regulation 119/PMK.07/2017.

10. Social and environmental analysis. The consultant shall conduct a baseline assessment of
environmental and social impacts1 of the proposed project, and recommend management and
mitigation measures for the same. The environmental and social chapter in OBC shall analyze the
risk of potential environmental and social impacts from the project, in the pre-construction,
construction and operation stages, and including the estimated costs of managing and monitoring
negative impacts that occur as an effort to mitigate these impacts. The analysis shall be conducted
with reference to the applicable Indonesian Government regulations. Note that the consultant is
not expected to prepare the AMDAL and LARAP. However, the consultant is expected to
undertake field surveys, consultations and analyse all environmental and social issues to ensure
that these are adequately included in the proposed mitigstion strategies, initial E&S impact
management cost estimates and preparation of comprehensive terms of references for AMDAL
and LARAP, as may be required. Specifically, the following will be include:

Environmental impact
Ensure the project environmental impact assessment is adequate and compliant with guidelines
through the following activities:
a) Carry out identification of all legal and regulatory aspects relevant for obtaining the
environmental approvals, environmental Impact Assessment (e.g. Emission and pollutant
generated requirements)
b) Review any existing environmental assessments and finalize ensuring that substantive
contents and format are consistent with environmental requirements, conducting
environmental due diligence and confirming the environment category, and information
disclosure and public consultation requirements

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The consultant is encouraged to examine the applicable environmental regulations of Indonesia, as well as the the Environmental and Social
Management Framework (ESMF) of the IIFD and the World Bank’s Safeguard Policies, which are mentioned below and as maybe updated from
time-to-time - (i) Environmental Assessment (OP/BP 4.01); (ii) Natural Habitats (OP/BP 4.04); (iii) Forests (OP/BP 4.36); (iv)Physical Cultural
Resources (OP/BP 4.11); (v) Indigenous Peoples (OP/BP 4.10); (vi) Involuntary Resettlement (OP/BP 4.12); (vii) Safety of Dams (OP/BP 4.37);
and (viii) Projects on International Waterways (OP/BP 7.50).

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c) In the Absence of an environmental assessment, conduct a scoping exercise to identify the
major environmental issues, classify the project in accordance with GoI guidelines, and
determine the level of environmental assessment needed and the consultation and disclosure
requirements; conduct an environmental assessment and prepare an initial environmental
examination for a category B project (or an environmental impact assessment for a category
A project) in accordance with Environmental Assessment Guidelines; inform and consult
with affected persons and local nongovernment organizations in accordance with
requirements; estimate the cost of an environmental management plan and funding sources,
ensuring that these are included in the total project cost
d) Prepare the terms of reference for undertaking AMDAL, in accordance with the government
regulation, so that the study can be carried out by GCA.
e) Ensure adequate public consultations disinformation disclosure of project-specific and
quantitative information on potential environmental impacts (both positive and negative) and
proposed mitigation measures
f) Include environmental management plan (following government approvals) in bid
documents, along with the requirement to comply with mitigation measures therein
g) Provide a structured recommendation about the project’s environmental and mitigation
strategies for environmental risks
h) Ensure that environmental considerations are explicitly addressed and incorporated into the
green light decision and that there are no unmanageable environmental obstacles ahead of the
project
i) Provide a sound recommendation about the environmental viability of the project, obtaining,
wherever possible, the environmental permits and final approvals needed for construction of
the infrastructure

Social Impacts
Ensure adequate due diligence on project social impacts consistent with social safeguard policies.
To fulfill:
a) Determine the PPP's social impact on the community and prepare a mitigation plan
b) Determine the institutions responsible for land acquisition and resettlement
c) Determine the parties to be affected by the project and the compensation that will be given, if
necessary
d) Determine training plans in order to implement social protection programs to increase the
capacity of affected communities.
e) Undertake an initial poverty and social analysis in accordance with guidelines, and based on
this, a social analysis of likely social impacts, design measures, and implementation
arrangements for maximizing project social benefits and minimizing/avoiding social risks
f) Summarize social analysis results (e.g., gender action plans, resettlement plans, indigenous
people development plan) into a summary poverty reduction and social strategy
g) Assess project capacity and commitment to undertake social impact due diligence, impact
monitoring, and mitigation measures implementation (e.g., resettlement implementation, if
needed)
h) If required prepare terms of reference for LARAP in accordance with the government
regulation.
i) Ensure adequate investigations and consultations with affected persons
j) Ensure overall project compliance with involuntary resettlement, adequate procedural and
public disclosures for resettlement plan improvements integrated in the project design, and
adequate documentation.
k) Provide conclusion of the social and environment analysis.

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11. PPP structuring and risk assessment. The consultant shall assess various forms of PPP options
and undertake a thorough options analysis based on all aspects covered earlier, such as strategic
needs, market demand, institutional and legal, technical, environmental and social, economic,
financial, risk, VFM and fiscal affordability. Based on the recommended PPP option(s), the
consultant shall elaborate the roles and responsibilities of each of stakeholders in the PPP
arrangement. The analysis shall include, among others, the following:
a. Details related to the project structure, in terms of PPP scope, concession period, asset
ownership and transfer arrangements, types of government participation and contractual
arrangements required.
b. Risk allocation and mitigation matrix, wherein the key risks in the project are identified,
and are suitably allocated based on the proposed PPP arrangement. In this context, the
consultant is encouraged to examine the IIGF Risk Guidelines (IIGF, 2017), the Global
Infrastructure Hub risk allocation guidelines for hospital sector and other good practice
guidance.
c. A strong justification, both in qualitative and quantitative terms, on the proposed
project’s potential to generate value for money based on the proposed PPP arrangement.

12. Government support analysis. The consultant shall conduct analysis of Government support
and/or Government Guarantee needs. The result of this analysis is level of government
interventions and support required for development such as infrastructure development to the
project, provision of utilities, and project financial support. This should include, among others,
the following:
a. Fiscal commitments. Nature, extent and strong justification of any fiscal commitments,
such as VGF, AP, guarantees, off-take payment obligations and other such direct and
indirect liabilities.
b. Approvals and clearances. Key approvals to move forward with the project from
concerned sector agencies/ministry and national level entities, such as Bappenas and
MOF. This should also provide an explanation of the nature of approvals and whether
any ministerial and/or local government regulations would be required, and/or creation of
any government intermediary entity and similar administrative and procedural issues.
c. Connective infrastructure. Nature, extent and strong justification of any connective
infrastructure or access to utilities or other government services should be specified. This
could include, access to municipal water supply, roads, electricity, waste management,
police and enforcement agencies and other such areas.
d. Incentives and facilitation. Nature, extent and strong justification of any support
measures or incentives that may be required to encourage project’s off-take or investment
facilitation, etc.

13. Project management. The consultant shall propose an effective institutional structure for project
management, including identifying the specific responsibilities of the PPP team within the GCA,
other key stakeholders and defining a decision-making framework. This shall include the
following:
a. Project and contract management mechanisms required to be in place for the
implementation of the project.
b. Overall procurement strategy, plan, and schedule, including the recommended bidding
criteria and identify critical issues that must be resolved prior to procurement of the
project.
c. Outstanding issues. Consisting of (i) Identification of critical issues that must be followed
up, (ii) Preparing completion plan of critical issues as prescribed in sub-point i, including
completion strategies and party in charge, and (iii) Timeframe required to complete PPP
preparation.

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 d. Overall timelines for the subsequent preparation, procurement, and implementation of the
project, in the form of a Gantt chart.

14. Public consultations. The consultant shall support the GCA to (i) undertake public consultations
and assimilate the feedback and results obtained from the public consultations, including
preparation of consultation material; (ii) conduct focus group discussions with various
government agencies in relation to specific areas / issues of the project, (iii) assist in discussions
with national level agencies, such as the sector agencies and the MOF. It is anticipated that there
would be several such consultations, through virtual and/or physical presence, as appropriate.

4. Conduct Market Sounding

The consultant shall support the GCA in (i) conducting consultative and promotional meetings with
potential investors, lenders, operators and other interested parties with the object of obtaining market
views and potential interest in the proposed project, (ii) preparing project information material and
analysing feedback received and updating the study. It is anticipated that there would be atleast two
consultations, through virtual and/or physical presence, as appropriate.
5. Conduct Capacity Building
Capacity building is aimed to equip GCA and project related stakeholders within Balikpapan
municipal government with knowledge and understanding by which the related stakeholders in
Balikpapan government are able to give input or feedback or approval towards recommendation
provided in the study including recommendation on project scope, technical solution, and project
structure.
In doing so, the Consultant is expected to:
a) Develop schedule including timeline, topics, and the proposed related stakeholders;
b) Prepare the presentation required for the capacity building;
c) Conduct presentation and manage ‘question answer’ session including provide answers to
participants’ questions;
Prepare report of the capacity building activities that include the information of attending participants,
summary question answer session, and conclusion (recommendation).

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 D. DELIVERABLES AND TIMELINE
1. Deliverables. The Consultants are expected to deliver the deliverables as follows:

TIME WEEK
LINE
FRO
M
DELIVERABLE 1 1 1 1 1 1 1 2 2 2 2 2 2 3 3
STAR 1 2 3 4 5 6 7 8 9 10 11 18 20 25 26 28 32
T 2 3 4 5 6 7 9 1 2 3 4 7 9 0 1
(WEE
K)

Inception 5
1 2
report %
Initial review
of project
information,
other
studies, and
identification
of critical
data gaps
Confirmation
of scope of
work and
approach
Work plan
and staffing
Presentation
Preliminary 10
2 10
Study %
Initial
assessment
of the
Manggar
Waste
Management
PPP project
This should
include site
visits,
preliminary
stakeholder
and public
consultations

13
 TIME WEEK
LINE
FRO
M
DELIVERABLE 1 1 1 1 1 1 1 2 2 2 2 2 2 3 3
STAR 1 2 3 4 5 6 7 8 9 10 11 18 20 25 26 28 32
T 2 3 4 5 6 7 9 1 2 3 4 7 9 0 1
(WEE
K)
.
Should meet
all
requirements
specified
under
Bappenas
regulation
xxxx
Initial Legal 5
3 12
Assessment %
Initial draft
of the legal
assessment
Initial
5
4 Demand 16
%
Assessment
Initial draft
of the
market
assessment
Initial
5 Technical 18 5%
Assessment
Initial draft
of the
technical
assessment
25
6 Interim OBC 20
%
Initial draft
of the OBC
covering all
areas
mentioned in
section C.
Financial
model

14
 TIME WEEK
LINE
FRO
M
DELIVERABLE 1 1 1 1 1 1 1 2 2 2 2 2 2 3 3
STAR 1 2 3 4 5 6 7 8 9 10 11 18 20 25 26 28 32
T 2 3 4 5 6 7 9 1 2 3 4 7 9 0 1
(WEE
K)
Presentation
Public
7 Consultation
workshop(s)
Focus Group
4
Discussions 1
Public
2.5
consultation 5
%
workshop 1
Focus Group
14
Discussions 2
Public
2,5
consultation 18
%
workshop 2
Focus Group
22
Discussions 3
Focus Group
24
Discussions 4
Market
26 -
8 Sounding
28
workshop(s)
Market
2.5
Sounding
%
workshop 1
Market
2.5
Sounding
%
workshop 2
25
9 Final OBC 32
%
Revised OBC
report,
incorporating
stakeholder
views/comm
ents
Presentation
1 Capacity
0 developmen

15
 TIME WEEK
LINE
FRO
M
DELIVERABLE 1 1 1 1 1 1 1 2 2 2 2 2 2 3 3
STAR 1 2 3 4 5 6 7 8 9 10 11 18 20 25 26 28 32
T 2 3 4 5 6 7 9 1 2 3 4 7 9 0 1
(WEE
K)
t
workshop(s)
Capacity
5
building 19
%
workshop 1
Capacity
5
building 23
%
workshop 2
Fortnightly
Every
1 update
fortni
1 presentation
ght
s
To present
the results
and analysis
as of date
Update on
various
activities
Request for
meetings and
data
Next steps
12. 17. 35 30
Payment 5%
5% 5% % %
1 2 3 4 5

All the above report will be submitted in draft, discussed and finalized having regard comments provided by DGSIFM, Ministry of Finance, in
consultation with Directorate for Financing for Settlement Infrastructure (DFSI), Directorate General of Public Works and Housing Financing,
Ministry of Public Works and Housing, City Municipality of Balikpapan, East Kalimantan Province, the World Bank, and other related
stakeholders. The deliverables (draft and final) should be prepared both in English and Bahasa Indonesia.
Due to Covid-19 pandemic condition in Indonesia, there are possibility to execute virtual activities, particularly for meetings, public
consultation, market sounding, capacity buildings, etc, subject to approval of DGSIFM.

16
2. Payments. The payments will be made in certain stages based upon outputs and upon work as per work plan agreed by the DGSIFM.

17
E. EXPECTED OUTCOME
A key outcome of the services shall be a bankable and market-acceptable project structure and in
accordance with the fiscal capability of the PJPK.

F. QUALIFICATIONS AND EXPERIENCE REQUIRED

The consulting firms is required to have relevant and proven work experience in developing Outline
Business Case and/or Final Business Case or the like, for a minimum of three completed projects
within the last ten (10) years in Indonesia and/or in the Asia-Pacific region, preferably with the
following aspects:
1. Experience in PPP Infrastructure sectors in Indonesia;
2. Experience in engaging with Indonesia Government sector and show a detailed knowledge
and understanding of government relationship;

The composition of required experts for the implementation of this work consists of multi disciplines.
It is essential that all Experts include the main experts, main expert assistants, and supporting staff to
be provided by this consulting firm need to have profound knowledge and experience in:
1. Demonstrated experience in providing relevant advisory services for PPP project development
cycle.
2. Proven experience in undertaking feasibility assessment of PPP projects in Indonesia and/or Asia.
Experience of pre-feasibility in waste management sector would be an advantage.
3. Demonstrated experience in engaging with Indonesia Government sector and detailed knowledge
and understanding of the government relationship will be an advantage.

In addition to the above requirement, it is anticipated that Main Experts will be required in the
following areas:
Qualification of Team Leader / PPP Expert:
1 Position Team Leader / PPP Expert
2 Amount 1 (one) person
3 Qualification of • Master degree in Engineering/Economic/Urban and Regional Planing/
Education Development Studies/Management or related major
• Has experience in working/training/workshop related to waste
management and should be evidenced by certificates or reference letters
4 Qualification of • Minimum 10 (ten) years of experience in PPP project/Infrastructure
Working Sector or related to term of reference
Experience • Preferably at least 3 (three) years international experience in the field of
PPP project/Waste Management project/ Settlement Infrastructure
finance
• Experience in preparing and executing PPP projects (Project
preparation, transaction, Operations and infrastructure Design)
• Preferably have an experience in composing OBC
• Excellent communications and reporting skills, including fluency in
English. Proficiency in Bahasa Indonesia will be an advantage.
5 Task and The Team Leader acts as a Leader for all personnel of expertise so that
Responsibilities each personnel can provide technical assistance, managerial, advisory,
and PPP implementation services, focusing on the implementation of PPP
components in accordance with corridors/provisions and supporting the

18
 achievement of PPP indicator objectives
Team Leader will routinely assist personnel to fulfill and carry out their
assigned tasks and responsibilities and compile a series of required
reports related to project.

Description of the scope of duties and responsibilities of the Team Leader

includes:
• Coordinate all key experts and assistant key experts in preparing routine
reports, periodic reports, and special reports related to this activity that
are needed by all stakeholders on time and according to the needs of
Service Users
• Coordinate all key experts and key expert assistants to carry out all the
outputs described in the TOR of this activity
• Ensure that all reports described in this TOR are well organized
• Compiling PPP structure study, study of government support and/or
government guarantee needs, and risk analysis sections in OBC report
to support the implementation of PPP Waste Management project
• Coordinating all inputs of the consultant's team; submission of reports
to MPWH/MoF/Government of Balikpapan; facilitation of meetings
and stakeholder consultations, as required; and liaison with the
Mof/MPWH/ Government of Balikpapan, as required
• Assist the Government of Balikpapan in providing insights related to
waste management analysis aspect in PPP
• Conduct strategic analysis to support the Government of Balikpapan in
carrying out its functions
6 Work Output • Master schedule (input-output, time plan) each professional expert and
sub professional expert.
• Inception report
• Interim report
• Final Draft Report
• Final Report
• Proceeding
• Special/Executive/Specific Report

Qualification of Financial Management Specialist:

1 Position Financial Management Specialist
2 Amount 1 (one) person
3 Qualification of • Master degree in Economics/Finance/Banking Economics/Business
Education Administrations/or related major
• Has experience in working/training/workshop related to job desk and
should be evidenced by certificates or reference letters
4 Qualification of • Minimum 5 (five) years of experience in economy/finance or related to
Working term of reference
Experience • Preferably at least 2 (two) years international experience in the field of
economy/finance
• Have experience in waste management infrastructure finance/PPP
projects, or other relevant fields. An understanding of waste
management development would be preferable
• Significant experience in KPBU infrastructure policies and strategies,

19
 institution/Organization, financial/project risk.
• Preferably have an experience in composing OBC for economy/finance
aspect
• Have a comparative analysis skill about the knowledge of the
ecomomy/finance field, especially in SCBA
• Preferably have verbal and written skills in both English and Bahasa
Indonesia
5 Task and • Compiling cost-benefit and economic analysis in OBC report
Responsibilities • Analyze the economy, especially financing regulations related to
regulatory support needed to support the implementation of waste
management PPP
• Conduct a strategic analysis to support the Government of Balikpapan
in carrying out its functions
6 Work Output • Compilation of PPP revenue structure analysis that will include
potential sources of income, rental rates and risk of the revenue
structure.
• Revenue analysis, costs comparison between PPP and public
procurement, and project financial feasibility analysis
• Compilation of Social Cost and Benefit Analysis (SCBA) to help make
public decisions by considering the welfare of the community.
• Compilation of financial studies that will include financial analysis of
the PPP project that will be carried out
• Compilation of Value for Money (VFM) analysis which will include a
comparison of the financial impact of the PPP project to the traditional
alternative infrastructure provision by the Government
• Revenue analysis, costs comparison between PPP and public
procurement, and project financial feasibility analysis
• Building two financial models for the Project and for the Government
points of view
• Other specific outputs that determined by Clients

Qualification of Infrastructure Expert (Solid Waste Management):

1 Position Infrastructure Expert (Solid Waste Management)
2 Amount 1 (one) person
3 Qualification of • Master degree in Environmental Engineering/Civil
Education Engineering/Engineering/ Regional and City Planning/ other relevant
fields
• Has experience in working/training/workshop related ss project
managers/team Leaders for multidisciplinary infrastructure sector
projects and should be evidenced by certificates or reference letters
4 Qualification of • Minimum 10 (ten) years of experience in the planning, operation,
Working and/or design of the solid waste management infrastructure sector or
Experience related to term of reference, with at least 3 (three) years of PPP project
development Experience in PPP projects, or other relevant fields
• Preferably have an experience in composing OBC for technical aspect
• Preferably have verbal and written skills in both English and Bahasa
Indonesia

20
5 Task and • Compiling technical analysis in OBC report of waste management PPP
Responsibilities • Analyze the technical aspect, especially technical and engineering
design to support the implementation of waste management PPP
• Assist the Government of Balikpapan in providing insights related to
technical aspect in waste management PPP
• Conduct a strategic analysis to support the Government of Balikpapan
in carrying out its functions
6 Work Output • Technical recommendation included in OBC report
• Compilation of technical/engineering analysis needed (Clarifying cost
assumptions and estimation, Clarifying the minimum service standards,
Analysis on asset ownership and treatment, Proposing the assumed
basic technical design) to support the implementation of PPP waste
management project
• Other specific outputs that determined by Clients

Qualification of Environmental and Social Analyst:

1 Position Environmental and Social Analyst
2 Amount 1 (one) person
3 Qualification of • Master degree in Environmental Engineering or related major
Education • Has experience in working/training/workshop related to job desk and
should be evidenced by certificates or reference letters
4 Qualification of • Minimum 10 (ten) years of experience in the field of environmental
Working analysis or related to term of reference
Experience • Experience in compiling environmental-social analysis of Waste
infrastructure
• Experience in PPP projects, or other relevant fields
• Preferably have an experience in composing OBC for environmental
and social aspect
• Preferably have verbal and written skills in both English and Bahasa
Indonesia
5 Task and • Compiling environmental-social analysis in OBC report
Responsibilities • Analyze the environmental-social aspect, to support the implementation
of waste management PPP
• Must be familiar with Indonesia's environmental assessment
requirements and KPBU regulations, including EIA or UKL-UPL and
RKL-RPL.
• Assist the Government of Balikpapan in providing insights related to
technical aspect in waste management PPP
• Conduct a strategic analysis to support the Government of Balikpapan
in carrying out its functions
6 Work Output • Environmental-social recommendation included in OBC report
• Compilation of environmental-social analysis needed (Environmental
Impact assessment and social impact analysis) to support the
implementation of PPP waste management project
• Other specific outputs that determined by Clients

21
Qualification of Legal and Regulatory Specialist:
1 Position Legal and Regulatory Specialist
2 Amount 1 (one) person
3 Qualification of • Master degree in law or related major
Education • Has experience in working/training/workshop related to job desk and
should be evidenced by certificates or reference letters
4 Qualification of • Minimum 7 (seven) years of experience in legal/lawyer or related to
Working term of reference
Experience • Preferably has experience with the PPP project procedures, and
business process
• Have a comparative analysis skill about the knowledge of the PPP
policy and concept as well as the prevailing PPP related laws and
regulations in Indonesia
• Have a good knowledge of Indonesia’s government structure and PPP
infrastructure development in Indonesia
• Preferably have an experience in composing OBC for legal aspect
• Preferably have verbal and written skills in both English and Bahasa
Indonesia
5 Task and • Compiling legal and regulatory analysis in OBC report
Responsibilities • Assist the Government of Balikpapan in providing insights related to
legal and regulatory aspect in waste management PPP
• Conduct a strategic analysis to support the Government of Balikpapan
in carrying out its functions
6 Work Output • Legal recommendation in OBC report
• Compilation of legal analysis needed (Confirmation on the regulations
and mitigating legal risks (if any), Identifying the required permits,
Identifying the missing regulations for project establishment, GCA
determination, etc.) to support the implementation of PPP waste
management project
• Other specific outputs that determined by Clients

Qualification of Market Economist:

1 Position Market Economist
2 Amount 1 (one) person
3 Qualification of • Master degree in market research, engineering, accounting, finance,
Education economics, business or equivalent
• Has experience in working/training/workshop related to term of
reference and should be evidenced by certificates or reference letters
4 Qualification of • Minimum 5 (five) years of experience in economy/finance or related to
Working term of reference
Experience • Preferably have an experience in conducting market survey and market
sounding for waste management project
• Have a comparative analysis skill about the knowledge of the
economy/finance field, assessment, estimated demand, cost/benefit
analysis, macroeconomic assessments especially in market analysis.
• Preferably have verbal and written skills in both English and Bahasa
Indonesia

22
5 Task and • Compiling market analysis and market sounding strategies of waste
Responsibilities management PPP
• Waste management demand analysis, especially regulations related to
support the implementation of waste management PPP
• Compiling demand analysis to get an accurate picture such as the
estimated needs, interests, willingness and ability of government to
Prepare the tipping fee, and expected service levels
• Conduct a strategic market analysis to support the Government of
Balikpapan in carrying out its functions
6 Work Output • Compilation of market overview for waste management in Balikpapan
that will include business interests in waste management PPP projects
• Compilation of market survey documents that will support the
implementation of the PPP project
• Compilation of real demand survey that will support the
implementation of the PPP project
• Proposed strategies for raising the standard of PPP waste management
projects
• Comprehensive reports related to best practice and the waste
management market in other countries
• Other specific outputs that determined by Clients

Qualification of Senior Assistant Professional Staff of PPP Expert:

1 Position Senior Assistant Professional Staff of PPP Expert
2 Amount 1 (one) person
3 Qualification of • Bachelor’s degree in Engineering/Economic/Urban and Regional
Education Planing/ Development Studies/Management or related major
• Has experience in working/training/workshop related to settlement
infrastructure and should be evidenced by certificates or reference
letters
4 Qualification of • Minimum 2 (two) years of experience in PPP project/ waste
Working management infrastructure finance or related to term of reference
Experience • Experience of waste management infrastructure construction projects,
knowledge of regulatory standards of waste management development
5 Task and Assist PPP Expert for the implementation of task and output
Responsibilities achievements
6 Work Output • PPP Structure Study
• Study of government support and/or government guarantee needs
• Risk Analysis
• OBC report for Manggar waste management PPP project
• Other specific outputs that determined by clients

Qualification of Bilingual Secretary:

1 Position Bilingual Secretary
2 Amount 1 (one) person

23
 3 Qualification of Minimum D3 with education qualification of Secretary/other Social fields
Education
4 Qualification of • Strong communication skills and able to work effectively, quickly, and
Working appropriately
Experience • Fluently in Indonesian and English language skills
5 Task and • Conduct routine secretarial duties to support the expert
Responsibilities • Manages the administration of this project
• Arrange the agenda for the regular meeting
• Translate all reports from Indonesian into English and vice versa
6 Work Output • Management of correspondence files related this project
• Agenda of this project periodical meeting
• Project report translation

G. DURATION, BUDGET PLAN AND LOCATION OF ASSIGNMENT

1. The Consultants will perform their tasks for the period of 9 Months with possibility of extension
subject to the needs of The DGSIFM and the funding support available from the World Bank, the
experts’s performance, and availability of the budget. The total budget plan for this assignment is
IDR4,184,600,000 or USD 282,743.

H. ACTIVITY MANAGEMENT
1. The Consultants will work under the supervision of Directorate of Government Support and
Infrastructure Financing Management (DGSIFM), Ministry of Finance in consultation with the
Directorate for Financing for Settlement Infrastructure (DFSI), Directorate General of Public
Works and Housing Financing, Ministry of Public Works and Housing, and under
acknowledgement of Major of Balikpapan City, East Kalimantan Province as the owner of the
project.
2. Deliverables must meet the requirement set by DFSI, DGSIFM, and the World Bank.
Deliverables will be assesed as a payment condition.

24