10. Alternative Ways to Finance Major Port Projects

Various alternatives of port infrastructure project financing are explored in the tenth chapter. The insights and perspectives of various Indonesian seaport industry stakeholders on financing of infrastructure projects are presented from findings from an online survey, focus group discussions and in-depth interviews conducted in Indonesia. A detailed case study of the New Priok Container Terminal One (NPCT-1) is used to illustrate how different scenarios of financing schemes would affect the project risks allocation, and the project value itself. The first scenario examines the project’s current financing structure – the contractual relationships between the project company, its sponsors, lenders and the government. The second scenario is built under a what-if assumption where the project is assumed to be financed under a Public Private Partnership (PPP) scheme with an annuity availability payments feature.