Indonesia: Sustainable Infrastructure Assistance Program - Capacity Development for the Metropolitan Sanitation Management Investment Project (Subproject 6)

Sovereign Project | 46380-002

Summary

The Asian Development Bank (ADB) is implementing the Metropolitan Sanitation Management Investment Project (MSMIP) to provide sewerage and wastewater treatment facilities within the central districts of the cities of Cimahi and Jambi (North Sumatra province), Makassar (south Sulawesi), Palembang (South Sumatra) and Pekanbaru (central Sumatra) in the Republic of Indonesia. The Government of Indonesia emphasized the urgent need to establish institutions in these cities to deliver quality, efficient sanitation services.

This capacity development technical assistance (CDTA) will support long-term sustainability of the loan by providing expert advice to (i) help establish the relevant agencies in the cities, (ii) create an operational framework for sanitation services which will include tariff structures and billing, and (iii) provide training to ensure continued sustainability of the services.

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Project Name Sustainable Infrastructure Assistance Program - Capacity Development for the Metropolitan Sanitation Management Investment Project (Subproject 6)
Project Number 46380-002
Country Indonesia
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector Water and other urban infrastructure and services - Water and other urban infrastructure and services
Gender Equity and Mainstreaming No gender elements
Description

The Asian Development Bank (ADB) is implementing the Metropolitan Sanitation Management Investment Project (MSMIP) to provide sewerage and wastewater treatment facilities within the central districts of the cities of Cimahi and Jambi (North Sumatra province), Makassar (south Sulawesi), Palembang (South Sumatra) and Pekanbaru (central Sumatra) in the Republic of Indonesia. The Government of Indonesia emphasized the urgent need to establish institutions in these cities to deliver quality, efficient sanitation services.

This capacity development technical assistance (CDTA) will support long-term sustainability of the loan by providing expert advice to (i) help establish the relevant agencies in the cities, (ii) create an operational framework for sanitation services which will include tariff structures and billing, and (iii) provide training to ensure continued sustainability of the services.

In particular, the CDTA will provide capacity building activities which will include the setting up of institutions and financial policies; a sanitation regulatory framework; operation manuals and advisory services; billing and collection systems; and provision of trainings and workshops. The outputs of the CDTA will be the establishment of sanitation management institutions, public awareness of sanitation issues, the micro-marketing of sewer connections, and tariff setting.

The CDTA is a sub-project of the C TA0013 INO: Sustainable Infrastructure Assistance Program (SIAP) that was approved by the ADB Board of Directors on 17 June 2013. The C-TA0013-INO is a technical assistance cluster (TAC) financed by the Australian Department of Foreign Affairs and Trade (DFAT) and administered by ADB.

Project Rationale and Linkage to Country/Regional Strategy

The urban population in the project cities depends on poorly constructed and maintained septic tanks and unlined pit latrines with leachates penetrating the aquifers. Some 80% of greywater drains directly to surface waters. The present sanitation services are inadequate and those that exist are not integrated, largely due to the lack of regulations and enforcement resulting in very limited desludging of septic tanks, wholly inadequate septage treatment facilities, and a fragmented operational responsibility. Improved access to safe water and basic sanitation is part of the government's effort to achieve its 2015 Millennium Development Goal (MDG) targets. While reports suggest good progress is achieved with sanitation, in practice, the facilities now available are inadequate and substandard.

Present sanitation relies on septage removal and its treatment in facilities, which are unsustainable. As a result, there is significant environmental pollution, widespread contamination of surface and ground water, and the associated spread of water-related diseases and high infant mortality. The inadequacies of the current sanitation systems and resulting environmental and health impacts have been shown to equate to economic opportunity losses of approximately $5.6 billion annually, equaling 2.3% of the country's gross domestic product. These issues can be solved by introducing (i) public sewerage and wastewater treatment facilities; (ii) an institutional framework for their effective operation and maintenance (O&M); and (iii) public awareness of good sanitation practices.

In Cimahi, Jambi, Makassar and Pekanbaru, there is no agency responsible for sanitation and hence no available experience to operate and manage sewerage and wastewater facilities to be provided under the loan project. In Palembang, the city government will be the implementing agency where water supply management experience exists. Accordingly, there is an urgent need to provide support, expertise and training for city agencies that will assume responsibility for the O&M of the services constructed.

The urban populations are generally poor and have little appreciation of the need for and benefits of good sanitation. Therefore, there is a need to develop a community-wide awareness of the personal health and economic advantages available through good sanitation practices. This understanding should also be reinforced within the new sanitation agencies.

Impact Improved efficiency and sustainability of Service Delivery Organizations in the cities of Cimahi, Jambi, Makassar, Palembang and Pekanbaru.
Project Outcome
Description of Outcome Strengthened institutional and capacity of responsible agencies in sanitation management and health in Cimahi, Jambi, Makassar, Palembang and Pekanbaru.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Establishment of sanitation management institutions

Improved public awareness of sanitation issues and the micro marketing of sewer connections

Sustainable tariff structure introduced

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The CDTA and proposed MSMIP implementation arrangements are the same. The Directorate General of Human Settlements (DGHS) in the Ministry of Public Works (MPW) is the executing agency. The CDTA will be managed by the central project management unit (CPMU) in the DGHS/MPW, and the appointed manager for MSMIP will also oversee CDTA implementation, supervision, monitoring, accounting, and reporting. A provincial project management unit (PPMU) and a city level project management unit (LPMU) for MSMIP will be appointed and a full-time counterpart staff in the same PPMU and LPMU will be appointed to coordinate CDTA implementation activities at the provincial and city level. The MSMIP will require that cross-sector teams will be set up at the sub-district level to support coordination among participating communities. These teams will include the head of the sub-district and representatives of the community health centers. In each participating community, a community implementation team will be established. These implementation sub-structures will also support CDTA implementation. In Palembang, a full-time counterpart staff will be appointed in the provincial and city offices of the MPW to oversee and coordinate CDTA activities. The CDTA will use the same coordinating mechanism as the proposed MSMIP to provide implementation updates and share lessons.
During Project Implementation The CDTA and proposed MSMIP implementation arrangements are the same. The Directorate General of Human Settlements (DGHS) in the Ministry of Public Works (MPW) is the executing agency. The CDTA will be managed by the central project management unit (CPMU) in the DGHS/MPW, and the appointed manager for MSMIP will also oversee CDTA implementation, supervision, monitoring, accounting, and reporting. A provincial project management unit (PPMU) and a city level project management unit (LPMU) for MSMIP will be appointed and a full-time counterpart staff in the same PPMU and LPMU will be appointed to coordinate CDTA implementation activities at the provincial and city level. The MSMIP will require that cross-sector teams will be set up at the sub-district level to support coordination among participating communities. These teams will include the head of the sub-district and representatives of the community health centers. In each participating community, a community implementation team will be established. These implementation sub-structures will also support CDTA implementation. In Palembang, a full-time counterpart staff will be appointed in the provincial and city offices of the MPW to oversee and coordinate CDTA activities. The CDTA will use the same coordinating mechanism as the proposed MSMIP to provide implementation updates and share lessons.
Business Opportunities
Consulting Services Consulting services will include a total of 131 person-months (49 person-months international and 82 person-months national) for TA implementation support. ADB will engage the consultants in accordance with the Guidelines on the Use of Consultants (2013, as amended from time to time). A firm will be recruited through quality and cost-based selection procedures (90:10), using a simplified technical proposal. One team of consultants will be formed in each city, with key persons based in the CPMU. They will work with government officials and MSMIP project implementation consultants in support teams at the central, provincial, and city levels.
Procurement Goods and equipment (if any) will be procured in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). At the end of the TA, procured goods and equipment will be turned over to the executing agency and local governments using them. Disbursement under the TA will be done in accordance with ADB's Technical Assistance Disbursement Handbook (May 2010, as amended from time to time).
Responsible ADB Officer Javier Coloma Brotons
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water Division, SERD
Executing Agencies
Directorate General of Human Settlements,MOPWJl. Pattimura No. 20
Kebayoran Baru
Jakarta, Indonesia
Timetable
Concept Clearance -
Fact Finding 15 Sep 2013 to 28 Sep 2013
MRM -
Approval 13 Jun 2014
Last Review Mission -
Last PDS Update 14 Jul 2014

TA 8666-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Jun 2014 07 Aug 2014 07 Aug 2014 17 Jun 2017 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 0.00 200,000.00 0.00 0.00 0.00 200,000.00 13 Jun 2014 543,468.39

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