Why invest in New Priok

Tanjung Priok is the key port of the fourth largest country on earth. It is the hub supply 250m people over a 17,000 island archipelago. It did not have the capacity of capability to deliver. New Priok was needed to:

• Reduce logistics costs

• Create capability to accept larger ships

• Improve access to Tanjung Priok

• Deliver more capacity

• Build a port developer

• Generate cash flow

• Generate investment for port projects

Mission critical project for the Government of Indonesia

The financing gap

New Priok Phase 1 was forecast to cost US$ 2.5 billion, in 2010 IPC had:

• Average EBITDA of US$ 106 million over previous 3 years

• This implied at best a debt capacity in the order of US$ 600 million

• Other CAPEX was to be funded by debt in the order of US$ 400 million

IPC had no access to Government funds because of fiscal budget constraints Ways were found to leverage what IPC had to deliver the investment Everything had to be done within a complex regulatory environment There was little international confidence in IPC’s track record on investment or being a Joint Venture partner The project was time critical and had to be done fast track

DWA contribution

David Wignall Associates led the development of New Priok Port they: Initial concept and pre-feasibility studies Prepared the Master Plan, Business Plans and Implementation Strategies Managed the regulatory approval process including a Presidential Decree Were Technical & Commercial Advisors for development process and led advisory team Negotiated main Concession Agreement and all other commercial agreements Advised on the Regulatory Position Led process to select Operators Provided senior staff to support company