Introduction
The Strategic Suitability Study chapter in the Pre-FS for a solicited KPBU should have confirmation of the conformity with and/or update to the strategic review conducted in the PS. The strategic study or review of the Pre-FS should provide information about the strategic context of the proposed KPBU. The review should make observations about the following in relation to the strategic review conducted previously in the PS (i) The existence or absence of new regulations from those that have been used as references in the preparation of the strategic study in the PS (ii) Validity of regulations used as references in the preparation of the strategic study in the PS (iii) Development of regulatory reviews in accordance with the progress of the KPBU project and/or (iv) Development of institutional reviews in accordance with the progress of the KPBU project.
Preliminary Study Confirmation
I.
- A Pre-FS for a solicited KPBU project will have a PS previously completed and submitted for evaluation. Therefore, while starting out on assessing the strategic suitability of the KPBU project during the Pre-FS, the GCA shall refer to the PS and confirm that all aspects, findings, and conclusions of the PS strategic study still apply during the Pre-FS. However, since there is a time lapse between PS and Pre-FS preparation, it may be the case that some aspects or sections of the strategic study of the PS may need to be updated based on current reality regarding the KPBU project. Therefore, the GCA shall update the strategic study of the PS, where required, and confirm the strategic context of the proposed KPBU project here.
Sector Policies And Strategic Plans Assessment
I. Alignment with government plans
- Present a review of policies and strategic plans related to the sector. These include the National Medium Term Development Plan (RPJMN), Regional Medium Term Development Plans (RPJMD), Government Work Plans (RKP), Regional Government Work Plans (RKPD), Strategic Plan (Renstra), and/or Ministry/ Institution Work Plan and Budget (RKKL). This review includes review and comments on suitability of the project plan with the above-mentioned planning documents at the national, Ministry/Agency and regional levels. The review should consider the conformity indicator that the project plan is explicitly mentioned in the RPJMN, RPJMD, Government Work Plan, Regional Work Plan, Strategic Plan, and/or Ministry/Agency Work Plan, therefore confirming here that the infrastructure provision initiative i.e., the KPBU project aligns with government plans.
- In the previous section, the GCA has confirmed that the infrastructure provision initiative (the KPBU project) aligns with any of the named government plans. Thereafter, the GCA shall also find out and confirm here whether any infrastructure financing methods have been mentioned in any of the above plans. If so, the GCA shall provide information on the potential financing methods that are mentioned in any of these plan documents for the proposed KPBU. If any of the above-mentioned planning documents do not explicitly mention the proposed KPBU, then mention so in this response. This would help the GCA assess the options for infrastructure financing that the proposed infrastructure provision may consider while preparing the KPBU project.
Needs Analysis And Compliance Assessment
I. Needs review of the project
- Here the GCA shall conduct analysis of the location identified for the KPBU project. This review shall include the results of land procurement and/or ownership status, conditions of the land parcel, encumbrances (if any) size, suitability for the KPBU project, and resettlement plan required (if any). The GCA shall also review the location connectivity and other aspects that may influence the development of the KPBU project. More details on the land acquisition/procurement status and land ownership status are expected in the Regulatory Assessment section, hence keep the response brief here.
- In this review of compliance aspects, the GCA shall assess and confirm whether the project’s location is in alignment with the spatial planning in the Regional Spatial Plan (RTRW) or the Detailed Spatial Plan (RDTR). The GCA shall also consult the sector policy and sector regulation, if any, for a review. Where applicable, provide understanding of whether the KPBU location is on a land parcel that complies with the regional spatial plan and/or local district/city environmental building plan. When the GCA confirms that the project’s location is in alignment with any of these plans, it is able to establish the project need for the community more than if the project’s location was not in alignment with any such plan.
II. Inter-sectoral infrastructure linkages
- In this review of compliance aspects, the GCA shall assess whether the KPBU project has inter-sectoral linkages or connection of infrastructure with other sectors. The GCA shall provide results of the review of the inter-sectoral linkages between the sector of the proposed KPBU and other infrastructure sectors. For this analysis, outline the direct linkages or relationship between the KPBU project plan and other infrastructure sector plans with similar or connected topics and/or the influence that the KPBU infrastructure development may have on connected infrastructure sectors. For example: a proposed KPBU bridge building project providing direct connectivity to hospitals, schools, commercial spaces etc. for the community, establishes the direct linkages between the bridge project and other infrastructure sectors. Thus, the GCA shall confirm that the need of the project is further established if there are direct linkages found with infrastructure in other sectors.
Regulatory Assessment
I. Legal and regulatory framework for the sector
- List the regulations that serve as references in the fields and sectors for the KPBU scheme. The review should compile a normative description of sectoral laws and regulations applicable to the project.
- Include an analysis or conclusions from the review of sectoral laws and regulations on whether the project plan can be implemented as a KPBU.
II. Updating the acquisition of Environmental Approval
- Provide details related to environmental aspects to determine the list of Environmental Approvals required for KPBU projects based on relevant and applicable laws and regulations.
III. Updating utilisation of State/Regional Property (BMN/BMD)
- Provide details on requirements or utilising State/ Regional Property (BMN/ BMD) in the infrastructure provision plan.
- If required, detail the strategy and process with timelines for preparing, submitting proposal for approval of the use of BMN/ BMD. The timelines should also include the expected timelines for obtaining approvals from relevant authorities
- Provide an analysis of the land required for the project along with status of land ownership. The review should provide a conclusion whether the infrastructure provision project plan requires land acquisition or not. Thereafter, detail the process with timelines for land acquisition as per relevant regulations and expected timelines for taking possession of land for the project.
IV. Other related regulations
- Include the results of the identification of the need for domestic components required for the implementation of the infrastructure project in accordance with sectoral laws and regulations.
- Include details on other regulations not discussed in the previous sub-sections but are important for the continuity of the infrastructure project
V. Legal risk identification and mitigation strategy
- This sub-section contains a review of the results of the identification and analysis of the project's legal risks at the planning stage. The review can be arranged in the form of a matrix containing the results of legal risk identification, initial indications of legal risk mitigation strategies and initial indications of the parties responsible for implementing the risk mitigation strategies.
Institutional Assessment
I. GCA’s authority analysis
- The GCA’s institutional review starts with confirmation of the authority of the ministers/heads of institutions/heads of regions/directors of SOE as PJPK/GCA to implement the KPBU under a PPP scheme and to act as Person in Charge of Cooperation Projects (PJPK). The PJPK is the person responsible for a collaboration project under the PPP scheme to provide sector infrastructure and has authority over projects providing the sector infrastructure through this scheme. This may have been identified previously in the PS, however needs to be confirmed if it is the same or changed during the Pre-FS.
- The appropriate GCA is to be established based on statutory regulations. The appropriate GCA can be identified in different ways. The central level PJPK for PPPs in the project sector may be automatically attached to the Minister of that infrastructure sector and/or to the heads of other government agencies that have those infrastructure facilities or act as PJPKs based on the results of the PS document. The GCA at the Ministry level can be delegated or given authority to if the PPP project in the sector is included in the PPP List or if it is determined by the Planning and Budget Bureau as a ready PPP project proposal in the sector. The PJPK is classified into Central Government Agencies and Regional Governments according to their authority based on applicable laws and regulations. The Minister (of that infrastructure sector ministry) can give authority to the Secretary General to act as PJPK for and on behalf of the Minister if the project is included in the PPP Plan List or is determined by the Planning and Budget Bureau as a PPP proposal. For heads of other central government agencies, the assignment or grant of authority is determined as per provisions of statutory regulations. The PJPK in the regional government is the Regional Head, i.e., the Governor, the Regent or the Mayor based on their authority. The Regional Head can give authority to the Regional Secretary or other Head responsible for matters of that infrastructure sector.
- Once the GCA if identified through any of the above processes and with a reference to the PS document, include the results in this response.
- Following the identification of the GCA for the project in the previous response, review the institutional aspects related to the planning and preparation of the KPBU and provide the review results. For this review, refer to relevant regulations, for example sector regulations, regulations related to government organisations and work procedures, or other related regulatory instruments. Provide information on how the identified GCA is the most suitable PJPK for planning and preparation of the proposed KPBU project.
II. Stakeholder mappings
- Carry out a stakeholder mapping. These are stakeholders related to the proposed KPBU plan. The mapping can be done in different ways. As an example, a method could be to list all stakeholders of the KPBU project and categorise them four ways to reflect their influence in the KPBU project. These categories include ‘keep satisfied’, ‘monitor’, ‘manage closely’, and ‘keep informed’.
- Once categorisation is done, map each category’s stakeholders’ roles and responsibilities to the project plan and relevant regulations. The mapping shall look like a matrix. Use this mapping matrix as an initial reference for the minister/institution head/regional head/SOE directorate to determine the infrastructure provision planning during the institutional review. The mapping of roles and responsibilities helps make the appropriate requests from stakeholders from time to time to enable execute the project plan for the preparation of the KPBU. Such documentation leads to good record keeping and helps monitor stakeholder performance or effect course correction, when required.
III. KBPU Node
- The GCA establishes the PPP or KPBU Node, following the provisions of laws and regulations. The GCA needs to ensure that the KPBU Node is tasked with the following (i) assist GCA in preparing the Pre-FS (ii) assist GCA in carrying out supporting activities in the PPP preparation stage (iii) assist GCA in coordinating with the Preparatory Agency, if any (iv) assist GCA in conducting market sounding and public consultation (v) submit periodic reports to GCA on the implementation of preparation stage (vi) collect documentation produced in the preparation stage and (vii) formulate policies, synchronise, and coordinate in the preparation stage of the PPP. Describe here which entity is established as the KPBU Node for the KPBU project under consideration. Describe here which of these tasks is the KPBU Node assisting the GCA with regards to the KPBU project. Describe here if the KPBU node has involved or established a work unit by involving another organisational unit/work unit in GCA based on needs.
Determination Of Approval Type Required
- In this section the GCA confirms the type of approval or permit required for the project. The explanation of the type of approval or permit required is expressed as a list. The list includes (i) The type of approval or permit required (ii) The legal basis used as a reference in the approval or permit (iii) The applicant for the approval or permit (iv) The issuing/approving institution of the approval or permit (v) The period of issuance of the approval or permit and (vi) The obligations required to obtain the approval or permit. The GCA is required to review the appropriate regulations including licensing rules prescribed by sector policies and regulations to confirm which approval or permit applies to the KPBU project. For example: based on Article 27 Paragraph (1) to Paragraph (5) of the Minister of Health Regulation No. 3 of 2020, regarding hospital infrastructure, an establishment permit and an operational permit are required. The GCA will need to determine the same for the KPBU project in its related sector.
Summary
The GCA shall mention the key conclusions and findings of the strategic review during the Pre-FS preparation. Briefly mention the key takeaways from each section of the strategic review including the (i) whether the PS strategic study has been confirmed or not (ii) whether the KPBU project aligns with any government plan and whether any government plan mentions infrastructure financing methods (iii) whether the project need is established through the project location analysis and whether the project location is compliant with the RTRW or the RDTR (iv) whether the project need is further established with inter-sectoral infrastructure linkages (v) whether the regulatory assessment confirms that the project has been analysed against the legal and regulatory framework for the sector, the environmental approval has been established, the requirement for utilisation of BMN/BMD has been established, and whether the land acquisition and ownership status is established (vi) whether legal risks have been identified and a strategy for risk mitigation has been proposed (vii) whether the GCA has been identified and its authority & suitability is established (viii) whether the KPBU Node has been established and tasks assigned and (ix) whether the type of approval or permits required for the KPBU project has been identified and documented.