Jakarta. The Asian Development Bank and Indonesian state-owned infrastructure finance firm Sarana Multi Infrastruktur signed a memorandum of understanding to jointly provide independent advice to governments at all levels regarding public-private partnerships.
In a statement sent to The Jakarta Globe, the Manila-based lender said the MoU, which was signed by ADB country director for Indonesia Steven Tabora and SMI’s president director Emma Sri Martini, is the first co-advisory framework arrangement between ADB and an Indonesian infrastructure group.
The MoU is expected to help speed up the delivery of private sector funding to critical infrastructure projects by structuring viable and bankable projects through transaction advisory services.
“SMI has proven leadership in infrastructure financing in Indonesia,” Tabor said in the statement. “Bringing together SMI’s local experience and ADB’s global expertise on PPPs will help structure better deals and deliver more value to the public.”
SMI is fully owned by the Indonesian government. It has a mission to provide infrastructure finance, as well as preparing the projects and advisory services.
ADB, based in Manila, works to reduce poverty in Asia and the Pacific. It has provided financing, independent advices and technical assistance to its member nations.
Established in 1966, the lender is owned by 67 members, and last year, it booked a total $22.9 billion in funding assistance , including co-financing $9.2 billion for various projects.