Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 17 Jan 2006
PDS Updated as of 11 Aug 2009

Project Name Rural Infrastructure Support Project
Country Indonesia
Project/Program Number 39597-013
Status Closed
Geographical Location The Project covers 1,840 villages in 45 districts in East Java, Nusa Tenggara East, South East Sulawesi and South Sulawesi provinces
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Multisector
Subsector Multisector
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan2221Asian Development Fund50,000
TOTAL US$ 50,000

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment C

Summary of Environmental and Social Issues

The civil works included in the Project will be limited to rehabilitation and improvements to existing infrastructure, and these shall not involve resettlement of people, relocation of houses, or land acquisition.

The Project will proactively include indigenous people among its beneficiaries. Because the Project will not involve negative impacts and will be fully based on community-driven development principles, compliance with the ADB policy on indigenous peoples will be de facto ensured by the main design and implementation mechanisms. Nonetheless, the selection criteria for infrastructure include provisions to ensure that indigenous people and other vulnerable groups are part of the capacity building, planning, implementation, and post-implementation processes, as well as that they will benefit proportionally from the improved access to rural infrastructure, the training, and construction-related employment opportunities.

All schemes selected under the Project at the village level will undergo rigorous technical and social evaluation prior to actual project approval and implementation. By using environmental screening criteria specified in the environmental assessment framework, only those schemes having no or very minimal environmental impacts will be selected.

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

The loan closed on 31 March 2009 and the project completion review mission is schedule in Q3 2009.

During Project Design
During Project Implementation

Description

The Project's long term objective is to improve welfare of the rural communities, and the immediate objective is to improve access of poor and near poor in the rural areas to basic rural infrastructure.

Project Rationale and Linkage to Country/Regional Strategy

The Government's National Poverty Reduction Strategy identifies lack of basic infrastructure in the rural areas as an underlying cause of poverty, and the Medium Term Development Plan 2004-2009 (MTDP) identifies investing into rural infrastructure as a key action for reducing poverty. The MTDP identifies investment needs of about $145 billion in infrastructure necessary to maintain a sustained GDP growth rate of 6% and for making steady progress towards the Millennium Development Goals (MDG) during the planned period. Of these, public sector requirements are estimated at about $25 billion for infrastructure, such as that for rural areas, that is traditionally unattractive for the private sector. However, investments in infrastructure have seen drastic decline from about $16 billion in 1996 to $3 billion in 2001 and to $1.5 billion in 2002.

The urgency of investments in rural infrastructure has further risen with the Government's ambitious plan to reduce fuel subsidies. The direct impact on the poor and near poor of, for example, a recent 186% rise in the price of kerosene is potentially substantial. Impacts resulting from higher transportation and energy costs will raise the general inflation levels. The direct and indirect impacts could further aggravate poverty levels and may lead to slippages in progress towards attaining MDGs. To mitigate these impacts and aid the poor and near poor, the Government has adopted a number of measures, including the rural infrastructure component of the PKPS-BBM, to provide basic infrastructure to rural communities. On account of resource constraints, the coverage of the PKPS-BBM in 2005 is limited to about 12,800 (about 20%) of the villages in Indonesia, which leaves a large unserved rural population. In 2006, the PKPS-BBM targets an additional 9,000 villages. The Project will support expansion of the Government program in an additional 1,800 villages with high incidences of poverty and poor rural infrastructure. That will raise the overall Program coverage to 23,600 villages.

Development Impact

Project Outcome

Description of Outcome
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2006 Jan 17
Consulting Services
An estimated 1,212 person months of consulting services, comprising 12 person months of international and 1,200 person months of domestic consultants, will be recruited to assist the Government in implementing the Project. In addition, 4,200 person months of technical support staff and 9,600 person months of village organizers will be recruited to provide social and technical facilitation to the communities. Three person months of international, 18 person months of domestic, and 8 person months of technical support staff will be recruited on individual basis while remaining services be procured through a domestic consulting firm. Consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants using the quality and cost-based system and other arrangements satisfactory to ADB for engaging domestic consultants.
Procurement
Civil works will be contracted to the communities following ADB's Guidelines on Community Based Procurement.
Procurement and Consulting Notices
http://www.adb.org/projects/39597-013/business-opportunities

Timetable

Concept Clearance
Fact-finding 05 Sep 2005 to 23 Sep 2005
Management Review Meeting 19 Oct 2005
Approval 19 Dec 2005
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 2221 19 Dec 2005 29 Mar 2006 20 Jun 2006 31 Mar 2009 11 Aug 2009

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
19 Aug 2014 Loan 2221 51,097 0 100.00%
Cumulative Disbursements
19 Aug 2014 Loan 2221 51,097 0 100.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 2221

Contacts and Update Details

Responsible ADB Officer Muhammad Ehsan Khan (mekhan@adb.org)
Responsible ADB Department Southeast Asia Department
Responsible ADB Divisions Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies Dir General of Human Settlements (Cipta Karya)
Mr. Danny Sutjiono

Links

Project Website http://www.adb.org/projects/39597-013/main
List of Project Documents http://www.adb.org/projects/39597-013/documents