FINANCIAL FEASIBILITY STUDY OF PUBLIC FACILITIES AT LAKE X USING PPP SCHEME

• Main Author: Achmad Mubarok, Ridho
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/57415
• Institution: Institut Teknologi Bandung

Tourism sector is a leading sector and is one of the important keys for regional development in an area and improving welfare for the community. Improving tourism and investment destinations, making the tourism sector a key factor in export revenues, job creation, business development and infrastructure. The Tourism sector has undergone sustainable expansion and diversification, and is one of the largest and fastest growing sectors of the world economy. As happened in district x specifically in the tourism sector where the lack of maximum income from eating from it the district government created a new facility in Lake X in order to maximize the potential in the environment The contruction of a new facility in Lake X requires a capital investment fund of Rp 103,523,948,90. Based on this, it is necessary to conduct due diligence, one of which is financial feasibility. If the project is economically viable but not financially viable, the Government should support the project. Realizing these needs, based on Presidential degree No.38 / 2015, the Government supports PPP projects in Indonesia through Availability Payments. The concept of the agreement used in this project is Build-Operate-Transfer (BOT) which instructs investors to design, build, transfer the project to the Government at the end of the concession period. Through this study the authors analyzed the feasibility of this investment plan by calculating the projected investment costs, income, and expenses required during operation. The feasibility of an investment plan can be financed by using Discounted Cash Flow (DCF) parameters, namely Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP). To find out which variables affect a project's financial viability, the authors use sensitivity analysis and scenario analysis. In addition, Monte Carlo simulations were also conducted in this study to provide information on the possible effects of uncertainty on selected variables.In the Project for the construction of this new facility with Availability Payments. The calculation results showed that the project was financially viable with NPV of Rp. 14.324.448.044, IRR 13,7%% higher than WACC of 9.42%, and payback period of 7,478 Years. Availability Payments, Project Capital Expenditures, Loan interest rates and wage increases are variables that affect project feasibility. Based on montecarlo simulation results using 1000 iterations, the project has a 14.87% probability of making the project unfit. The mean value of the Monte Carlo simulation result is Rp. 10.489.234.312 million which is considered a profitable project. Using the concept of Value for Money new facility by using PPP scheme provides better efficiency compared to development using conventional schemes.