PPP and Partnership PPP and Partnership FundingFunding

for Solar Projectfor Solar ProjectBangkok 2014Bangkok 2014

SGI SGI –– Mitabu, BrisbaneMitabu, BrisbaneBrisbane Capital InvestmentBrisbane Capital Investment

Dr. M. Rusydi Dr. M. Rusydi -- DirectorDirector

CONDITIONCONDITION

Local Government support Local Government support –– Direct Appointment IPPDirect Appointment IPP

Solar Fund FinanceSolar Fund Finance

No land acquired No land acquired –– Government contributionGovernment contribution

25 years focus25 years focus

SPV applicationSPV application

Solar Development Mechanism

CONDITIONCONDITION

PPP model for Solar Energy DevelopmentPPP model for Solar Energy Development

Provincial Level and or District Level (Autonomy)Provincial Level and or District Level (Autonomy)

BUMD (State owned Enterprise)BUMD (State owned Enterprise)

Not all Districts have Not all Districts have

PPP Model – Cost Saving

CONDITIONCONDITION

Local Government support Local Government support –– Direct Appointment IPPDirect Appointment IPP

Solar Fund FinanceSolar Fund Finance

No land acquired No land acquired –– Government contributionGovernment contribution

25 years focus25 years focus

SPV applicationSPV application

Solar Development Mechanism

CONDITIONCONDITION

Less developed provincesLess developed provinces

Island province concept such as Bangka, Lombok, MalukuIsland province concept such as Bangka, Lombok, Maluku

BUMD plus (local business group and BUMN)BUMD plus (local business group and BUMN)

BUMD plus (local business group)BUMD plus (local business group)

State Owned Enterprise

CONDITIONCONDITION

PERDA (Local Legislation), JakartaPERDA (Local Legislation), Jakarta

District vs ProvinceDistrict vs Province

30 % from Renewable Energy30 % from Renewable Energy

South Sumatra and Kupang caseSouth Sumatra and Kupang case

LOCAL GOVERNMENT SUPPORTLOCAL GOVERNMENT SUPPORT

CONDITIONCONDITION

Structured financeStructured finance

Active partnership financingActive partnership financing

Strong CSR componentStrong CSR component

Training and EducationTraining and Education

GREEN FINANCINGGREEN FINANCING

CONDITIONCONDITION

Partnership Finance Partnership Finance –– link to underlying assetslink to underlying assets

Sukuk (Islamic Bond) and Islamic FundSukuk (Islamic Bond) and Islamic Fund

Large IPP ( > 30MW) Large IPP ( > 30MW) -- Sukuk (hybrid structure)Sukuk (hybrid structure)

Small IPP ( 5 Small IPP ( 5 –– 30 MW) 30 MW) –– Syndicated + FundSyndicated + Fund

Green Financing - Partnership Funding

CONDITIONCONDITION

PPA and non PPAPPA and non PPA

Mechanism direct to PLN (State owned Electricity company) vs B Mechanism direct to PLN (State owned Electricity company) vs B to Bto B

Land issueLand issue

Multiple contract, IstisnaMultiple contract, Istisna’’, Ijarah, Musharakah for Sukuk Issuance, Ijarah, Musharakah for Sukuk Issuance

Contract Structure

CONDITIONCONDITION

Solar Investment Fund componentSolar Investment Fund component

Sukuk hybrid in AUD Sukuk hybrid in AUD –– Labuan basedLabuan based

Sukuk (Islamic Bond) for 50MW Tanjung Api Api projectSukuk (Islamic Bond) for 50MW Tanjung Api Api project

Total 250 MW projects Total 250 MW projects -- FIT mechanism FIT mechanism –– Non TenderNon Tender

PLN commitmentPLN commitment

Solar Fund

Local Gov.of South Sumatra

PT. PDPDE

PPP ModelPublic-Local Gov.

Private-SGI-Mitabu

Partnership-PDPDE

PLN

Solar Fund,

Banks,

Sukuk

EPC

O&M

Provide finance

EPC

O&M

50MW @ Tanjung Api Api

PT. SGI-Mitabu Sumatra Selatan(+local partner)

• Land ownership will be transferred to state-owned company PT. PDPDE

• Land will be then provided by PT

PDPDE for the development of this 50MW solar farm

PT. SGI-Mitabu Sumatra Selatan•SGIM will form local company

•PPA will be established between PLN and the local

SPV

PPA

Local Gov.of South Sumatra

PT. PDPDE

PPP ModelPublic-Local Gov.

Private-SGI-Mitabu

Partnership-PDPDE

PLN

Solar Fund,

Banks

EPC

O&M

Provide finance

EPC

O&M

5MW @ Jakabaring Sports City

PT. SGI-Mitabu Sumatra Selatan(+local partner)

• Land ownership will be transferred to state-owned company PT. PDPDE

• Land will be then provided by PT.

PDPDE for the development of this 5MW solar farm

PT. SGI-Mitabu Sumatra Selatan•SGIM will form local company

•PPA will be established between PLN and the local SPV

PPA

Construction

administration

and preparation Construction Phase

Operation and Maintenance Stages

SGI–Mitabu Solar Power Plant

Dr. M. Rusydi, Director

0 18

months7

years

25

years

Sukuk

Issuance

Istisna’

with EPC Contractor

Sukuk payment to

investor

Sukuk

Maturity

Ijarah

with OM CompanyMusharakah with OM Company

Refinancing

through equity

sharing

IPO

Profit loss sharing to shareholder

Based on sukuk issuance, 1st SPV is established to execute the project and

2nd SPV to operate project

Based on musharakah contract, 3rd SPV is

established to operate project when the tenor

of the sukuk is expired in year 7

Ijarah

with Local Government Land

Power Plant