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Risk Coverage

As an organization that provides risk assurance for infrastructure projects, PT PII builds a comprehensive risk management framework taking into account the unique risks inherent in the project.

Risk Coverage

The scope of PT PII's guarantee is the financial obligation of the GCA, in accordance with the cooperation guarantee agreement which is based on a reasonable risk allocation. PT PII can guarantee various financial obligations of PJPK that have been allocated to the PJPK according to the PPP agreement.

 


Examples of risks that can be guaranteed:

License and approval license

Coverage of risks due to delays or failure to provide licenses, permits or approvals (delays that have a negative impact on construction costs, funding costs and the start of revenue generation).

 


Financial Close delay / failure

Coverage of the risk of delay or failure of financial close resulting from the action / inaction of the PJPK (other than land issues and agreement issues).

 


Changes in regulations and legislation

Coverage of losses as a result of changes in regulations / legislation that have a negative impact on the project, such as tax regulations, tariff structures, or regulations that affect the technical specifications of the project and cause changes in costs.

 


Guarantee Capacity

In structuring guarantees, PT PII has access to guarantees from:

1) PT PII's capital

2) Multilateral Development Institutions such as the World Bank or other relevant institutions

3) The Indonesian Government, as joint guarantor