Readiness of local government in PPP project development - case of LRT Bandung

¹ Magister Study Program of Civil Engineering, faculty of Civil and Environmental Engneering, Institut Teknologi Bandung, Bandung, Indonesia
² Construction Engineering and Management Research Group, Faculty of Civil and Environmental Engineering, Institut Teknologi Bandung, Bandung, Indonesia

^* Corresponding author: reiniwhk@gmail.com

Abstract

Infrastructure development with PPP (Public Private Partnership) scheme is a relatively new concept applied by the Indonesian construction industry as an alternative to overcome delays and the low absorption of the Indonesian Government Budget (APBN) and Regional Government Budget (APBD) in the procurement of basic infrastructure. However, in practice, the failure rate of the government in carrying out infrastructure projects with PPP scheme is high. The failure of PPP project is generally caused by the way the government works in preparing projects that are not adjusted to the needs of PPP, the constraints of land acquisition, poor coordination between central and local government, participation, and overlapping regulations. This raises the question of how to know the condition of government readiness in implementing projects under PPP scheme and identify the constraints affecting government readiness. This study develops an assessment that can be used to measure government readiness in implementing projects under PPP scheme. Factors used in the system were developed based on three studies on the readiness assessment systems in various countries, namely: Public-Private Partnerships for Transport Infrastructure Toolkit from PPPIRC World Bank, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and United Nations Economic Commission for Europe (UNECE). The assessment will be used to assess the level of readiness and constraints faced by the government of Bandung in implementing the project LRT Bandung.