Indonesia: Road Rehabilitation-2 Project
Due to the scarcity of financial resources brought by the 1997-1998 Asian financial crisis and the focus of the Government of Indonesia on macroeconomic stabilization and other pending issues, spending on transport infrastructure, specifically roads, was reduced. This resulted in the continued deterioration of roads arising from lack or absence of adequate maintenance and the postponement of critical road investments. These subsequently increased transport costs as the poor road network condition led to increased vehicle operating costs, longer travel times, and higher transport fares.
The government's Medium-Term Development Plan, 2004-2009 placed high priority on the development of infrastructure within the overarching objectives of creating peace and security, creating democracy and fairness, and improving people's lives. Road development policy prioritized increasing road capacity and quality to more developed regions by strengthening island-based main national road corridors and providing better access to less developed regions, including remote and border areas. Developing these national corridors was part of the government's commitment to the Association of Southeast Asian Nations (ASEAN) regional cooperation program, which required implementation of priority infrastructure projects at national level. Improving integration and connectivity, and developing land transport and trade corridors linking Brunei Darussalam, Indonesia, and Malaysia were ASEAN milestone objectives. With fiscal constraints likely to remain, external support was critical to preserving, upgrading, and developing priority links and supporting economic recovery.
This report validates the completion report's assessment of the project which aims for an improved vehicular access on strategic national and international roads in Sumatra and Kalimantan, reduction of road transport tariffs for both passenger fares and freight tariffs, reduction in the premature breaking of roads, improved road safety awareness and improved governance in project implementation. IED overall assessment: Successful
- Project Basic Data
- Project Description
- Evaluation of Performance and Ratings
- Other Performance Assessments
- Overall Assessment, Lessons, and Recommendations
- Other Considerations and Follow-up