Indonesia - Infrastructure Financing Facility Project (Anglais)

Ratings for the Infrastructure Financing Facility Project for Indonesia were as follows: outcomes were moderately satisfactory, risk to development outcome was substantial, Bank performance was moderately satisfactory, and Borrower performance was satisfactory...  Voir la suite Ratings for the Infrastructure Financing Facility Project for Indonesia were as follows: outcomes were moderately satisfactory, risk to development outcome was substantial, Bank performance was moderately satisfactory, and Borrower performance was satisfactory. Some lessons learned included: Institution building is a slow process in Indonesia, even with strong support from committed, forceful Cabinet members. To assist with monitoring during the early years of a project like Indonesia Infrastructure Finance (IIF), it would be helpful if the Project Indicators were to include metrics of institutional development.Setting up an institution properly includes a willingness to take tough decisions. Making such tough decisions demonstrates institutional integrity and goes a long way towards building credibility.Good managers with private sector backgrounds will require time to become acquainted with Government of Indonesia (GoI) and World Bank processes.In setting up a private-sector oriented institution, like IIF, the private sector partner should be involved as soon as possible.The design of an operational framework of a private-sector oriented institution, like IIF, should have early input from the private sector partner.Once capacity and trust are established, management and shareholders should be given a maximum amount of freedom to pursue commercially viable sub-projects in areas of national priority.The experience of this project echoes the well-known importance of a strong pipeline of projects at start-up. However, this experience also indicates that, at design, it can be difficult to assess the quality of the sub-project pipeline because sub-project assessments often lack details in important areas like institutional capacity and safeguards.In design and early implementation, the Bank’s implementation support viewed this Financial Intermediary Loan (FIL) operation as a series of Specific Investment Loans, and attempted to reach beyond institutional capacity building of the Financial Intermediary. Effectively, it tried to pro-actively manage the details of sub-projects, but found that the Financial Intermediary did not have the authority to impose the Bank’s safeguards on IIF’s clients. This approach proved impractical in working with the private sector, which values proprietary information.  Réduire