11 April 2019

Infrastructure Government Guarantee

Written by Indonesia Infrastructure Guarantee Fund (IIGF) , Ministry of Finance of Republic of Indonesia
11 April 2019

Date of effectiveness: 2010

Infrastructure guarantee is a guarantee given on GCA’s financial obligation to pay compensation to the project company in the occurence of infrastructure risks which has become GCA’s responsibility based on risk allocations agreed in the PPP agreement.  Infrastructure guarantee is implemented by IIGF as a single window policy. If the guarantee coverage exceeds the capacity of the IIGF, it will be carried out as co-guarantee by the Ministry of Finance and IIGF.  

The benefits of Infrastructure Guarantee are:

  1. Ensures financial close successfulness as well as potential improvement in tenor, interest, and/or financing terms.
  2. Ensures GCA’s performance to meet its obligations.
  3. Enhance the investor’s and lender’s confidence and comforts.