FEASIBILITY STUDY FOR PUBLIC PRIVATE PARTNERSHIP SCHEME (CASE STUDY: ITB CIREBON CAMPUS)
The rapid advancement in technology has made the global competition tighter. Appropriate action such as increasing infrastructure development as well as improving human resources quality is needed to maintain country economic growth. However, every year ITB (Institut Teknologi Bandung) faces a conce...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/41487 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The rapid advancement in technology has made the global competition tighter. Appropriate action such as increasing infrastructure development as well as improving human resources quality is needed to maintain country economic growth. However, every year ITB (Institut Teknologi Bandung) faces a concern where the number of applicants is far higher than the number of students accepted due to its limited capacity. To overcome this problem, ITB plan to develop a campus in Cirebon, Indonesia, by using public-private partnership (PPP) financing scheme. This research was conducted to assess the financial feasibility of developing ITB Cirebon Campus, using the PPP financing scheme.
PPP is a cooperation between government and private company in providing infrastructure for public use. In Indonesia, PPP partnership is regulated through Presidential Regulation No 38/2015 and also PPN ministry Regulation No 4/2015. There are several indicators based on the regulation, for example, the Value for Money Analysis and the Economic & Commercial Analysis.
In the financial feasibility analysis, it can simulate several scenarios to determine the best scheme for ITB based on the financial assumption, return of investment options and also the availability of support from the government. The scheme that will be used are, (1) User charge, (2) User charge with Viability Gap Fund, and (3) Availability Payment. From the financial analysis, the author found that it will better for both ITB and the private company if the Cirebon Campus is developed using the user-charge scheme with a VGF incentive from the government. Furthermore, with the social cost-benefit analysis it can be found that the development of the ITB Campus in Cirebon would be benefitting the society, therefore economically feasible. By using the Value for Money analysis, this study found that it would be more efficient if it is financed by using the PPP scheme.
Based on the feasibility analysis result the author recommends that ITB continues the Cirebon Campus development using the PPP financing Scheme. For the following action, the author recommends that ITB held a market consultation, to absorb the market insight on the project. Based on the Author's calculation, it is estimated that the project still able to be constructed in 2020.
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