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
Our team
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How can we help you?
How can we help you?
WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
Sinclair House, 3 Glenside Crescent
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (0)1 85 64 10 22
3B Rue Taylor
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-121
Colombia
Thinking for a better world.
WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia
Thinking for a better world.