GOVERNMENT MULTIFUNCTIONAL SATELLITE MARKET SOUNDING MARKET SOUNDING 6 th June 2018
Disclaimer This document is published by the BP3TI for the purpose of Market Sounding of Government Multifunctional Satellite PPP Project. This Document is not intended to provide all information with respect to the Project and is not binding. However, this Document is expected may assist the participant of the Market Sounding to obtain understanding on the general Project frameworks hence it may provide input to the BP3TI in preparation and transaction of the Project. 1
CHAPTER 1 PROJECT OVERVIEW
Project Profile Over 145,500 public sites (schools, hospitals, state/local government) around Indonesia are lack of connectivity, satellite is the only feasible access technology to cost-effectively address these remote locations. Connecting these sites will require 200 Gbps of new HTS capacity to be provisioned across Indonesia High Throughput Satellite 10-30 Mbps 53.200 SUMATERA 18.800 KALIMANTAN 18.800 JAWA 13.500 BALI & NUSA TENGGARA 200 Gbps shall be provisioned by a combination of - KEMKOMINFO a) Commercially leased capacity (not part of this contract) b) SMF Satellite 23.200 SULAWESI 17.900 PAPUA & MALUKU SMF shall provide approx. 150 Gbps of capacity across Indonesia Orbital Slot prepared by Private Sector Entity Contract Sign 2018 Construction 2019-2022 15 years concession period 145.500 SERVICE LOCATIONS EDUCATION 93.900 ELEMENTARY/JUNIOR/SENIOR/ MTS/MA BENEFICIARIES LOCAL GOVERNMENT 47.900 VILLAGE/DISTRICT HEALTH 3.700 COMMUNITY HEALTH CENTERS/ 3 CLINICS
CHAPTER 2 LEGAL
Indonesian PPP Regulatory Frameworks Presidential Regulation No. 38/2015 Provides basic provisions with respect to PPP process in Indonesia, including: planning, preparation, and transaction Presidential Regulation No. 78/2010 Government, through IIGF may provide guarantee with respect to financial obligation of the GCA in the PPP Agreement Minister of National Development Planning Regulation No. 4/2015 Provides provisions on planning and preparation of PPP Project Ministry of Finance Regulation No. 260/2016 Provides provisions with respect to Availability Payment scheme on PPP Project. Under this scheme, GCA shall pay periodic payment to IBE Head of National Procurement Agency Regulation No. 19/2015 Provides provisions on procurement process of business entity for the implementation of PPP Project Ministry of Communication has sufficient regulatory frameworks for carrying out the Project under PPP Scheme Notes: According to Presidential Regulation No. 44/2016, the line of business of IBE will be telecommunication networks provider (open for foreign investor up to 67%). Foreign entity (bidders) shall established a consortium with local partner to comply with above requirements. 5
Basic PPP Structure with Availability Payment (AP) Scheme Assignment Government Contracting Agency (GCA) Recourse Agreement Unit under GCA PPP Agreement IIGF AP Payment Implementing Business Entity* Guarantee Agreement Payment Users GCA will pay periodic payment to IBE (AP Payment) upon completion of the Facility and ready to deliver the service based on the output specification. The amount of AP Payment will be subject to the performance of the IBE in achieving the service standard agreed in the PPP Agreement. Formula for AP Payment will be agreed in the PPP Agreement. 6
Project Structure Assignment Minister of Communication Recourse Agreement BP3TI PPP Agreement IIGF PPP Scope AP Payment and other financial Obligation Implementing Business Entity* Service Guarantee Agreement Appointment VSAT Operator Service Service Payment (if any) User (such as Government Institutions) *Implementing Business Entity (IBE) established by the winning bidder 7
PPP Scope Scope of Works IBE GCA Financing of the Project Securing the satellite orbit support Acquiring the gateway location Support Acquiring the earth station location Support Manufacturing the satellite Construction of gateway and earth station Launching the satellite Obtaining insurances for the Project Operation and maintenance of the satellite, gateway and earth station Monitoring and evaluation of the Project AP Payment 8
CHAPTER 3 TECHNICAL ASPECT
SMF Network Functional Definition and Responsibility Breakdown SCC (incl. Resource Manager) Satellite (150 Gbps) Reference IP Processing (<10 Gbps) RF Gateways ( 15) Reference Terminals (100 to 150) Modems VSAT Operator 1 Modems at RF-GWs IP Transit between Add/Drop points IP Processing IP Termination Traffic Management SLA Billing / Tracking Remotes Installs Customer Support Layer-3 link to centralized IP Processing Nodes 1. SCC Functions (TT&C, NSSK, etc.) 2. Resource Management (bandwidth and power to VSAT operators) 3. Monitoring / KPI Functions (using reference terminals) 4. Reference Network Functions 5. Reporting Functions (usage tracking using data provided by VSAT hubs) 6. Network operations and maintenance (physical network components) 7. Layer-3 Add/Drop Equipment (at all RF GWs and at Centralized IP Processing nodes) 8. Co-location of VSAT operators equipment 9. Technical support VSAT Operator 2 VSAT Operator n internet Modems co-located with GW antennas Centralized IP Processing located in Java to minimize IP Termination costs and simplify dayto-day management with VSAT operators Blue = Responsibilities of SPV (Bidder) Red = Responsibilities of VSAT operators (outside of this contract) NOTE: System must be able to support multiple hub technologies within the same beam(s) 10
Scope of Work for SPV (Under this SMF Contract) SPV VSAT Operators Satellite Capacity (MHz) RF Gateways Layer 3 gateway interconnect network equipment ( Add/Drop ) Reference Network for monitoring SMF performance Satellite control facility SMF Service Demarcation Between the (coax) intermediate frequency (IF) interface ports on the terrestrial-facing side of the RF Gateways and the farfield input/output plane of the user terminal antennas. NOTE: SPV is not responsible for providing an IP service IP Services Satellite modems (colocated at GWs) IP Processing IP Transit (between RF GWs and IP Processing) IP Termination User Terminals Customer Management (Billing, Installs, etc.) 11
Summary Requirements Satellite Service capable of supporting at least 150 Gbps of managed data services, with a 3:1 FWD:RTN ratio capable of supporting of 145,500 User Terminal sites across Indonesia shall be delivered by the SPV to Distributors (VSAT operators), to facilitate the Distributors ability to provide managed VSAT services Gateway RF Gateways shall be located so as minimize interference and optimize the capex RF Gateways locations shall have redundant fiber connectivity to the locations of the IP Processing The Baseline plan is that RF Gateways shall be located within Indonesia 12
Summary Requirements (2) must provide visibility to all of Indonesia with an elevation angle no lower than 20 Orbital Slots compatible slots to the GEO arc between approximately 78.4 E and 156.7 E assigned the necessary licenses or other such commitments (for the operation of the SMF satellite and the provision of the Satellite Services) SSC responsible for the purchase, deployment, operation and maintenance of one Primary and one Backup Satellite Control Center (SCC) baseline plan is that the TT&C system shall use the C-band location of the Primary SSC shall be within Indonesia 13
Orbital Slot Contractual Requirements If proposed slot is from foreign Regulator: 1. Foreign regulator must agree to allow and assign use of the filed frequencies/beams over Indonesia to the SMF project for the entire term of the agreement, plus up to two renewal periods 2. SPV must agree to, and make best efforts to have the Regulator owning the proposed ITU filing to agree to: Cooperate with the GOI and not challenge, block or otherwise hinder the GOI s efforts to file, coordinate, notify, and BIU a new ITU filing at the same orbital location, containing just the spectrum, carriers and beams needed to perform the SMF mission, consistent with the contracted SMF network design and the ITU Radio Regulations; Coordinate with the GOI s new filing, to allow the SMF s operation under the new filing at the same power levels in the same beams and carriers as if the satellite were using the original (proposed) ITU filing; If instructed by the GOI following successful coordination of its new filing with all nearby Administrations, suspend the use of the corresponding beams and carriers in the original proposed ITU filing, in order to transfer operation of the SMF to GOI s new ITU filing. 14
CHAPTER 4 FINANCIAL
FINANCIAL SUMMARY CAPEX Total Capex is IDR 5,859 billion (Satellite, Launch Vehicle, Insurance, Ground Segments, Pre-operating costs) Total sustainable Capex for Ground Segments is IDR 1,987 billion (for 15 years, every 5 year period) OPEX FOREX Assumption Total Operating expense is IDR 4,096 billion (for 15 year period) Total nominal cumulative tax and levies payment (USO payment, BHP telecommunication license, BHP frequency, and corporate tax payment) is IDR 3,611 billion Foreign exchange assumption is based on IDR/USD 13,887 (as of 5 June 2018)