PROJECTS

Business Case and Transaction Advisory for Non-Toll Roads in Sumatra, Indonesia

The problem

Indonesia, an archipelago of more than 17,500 islands, lacks an adequate national highway limiting mobility and increasing logistics costs. The Government planned to build 4,000 kilometers of roads of which it wanted private financed operations without having to charge tolls—something which have not been done in Indonesia before.

How we helped

Castalia helped Bina Marga, the government road management agency, to procure a private investor for two privately-financed but non-tolled highways in Sumatra (Riau and South Sumatra national roads). This was the first non-tolled highway public private partnership (PPP) in Indonesia. We prepared the business case to assess the technical, financial, economic, and socio-environmental viability of the project. We designed the PPP structure, prepared procurement documents and helped manage the transaction.

Impact

This PPP project is close to financial close. Once operational, the concessions will preserve, rehabilitate and expand vital components of the national highways network in Sumatra.

The client

Bina Marga

Our team

Giang Doan

Giang Doan

Director

Find out more

How can we help you?

How can we help you?