Indonesia: Sustainable Capacity Building for Decentralization

Public sector management / Decentralization

An efficient market in capacity building services in targeted provinces (cost-competitive, high quality, adequate product range) realized

A legally mandated process of action planning (CB-AP) to support sustainable capacity building within targeted regional governments institutionalized

A system of providers regulated primarily by market forces, but supported by essential marketing networks, database, and certification systems created

- Capacity building services is realized in the participating local governments. Qualified service providers are able to deliver the services as required.

- Capacity Building Action Plan (CB-AP) in each participating local government has been legalized through the Regional Strategic Plan (Renstrada) which secures the implementation of the CB-AP. The Government is proposing a draft regulation (Presidential Regulation) on capacity building program for local government ensuring a CB-AP institutionalized within the local government.

Consulting Package C-2: District Capacity Building Action Plans (CB-APs):

In the interests of efficient administration and economies of scale, procurement of services to implement the approved district CB-APs will be carried out on the basis of one umbrella package covering all activities for each district government. Domestic capacity building service providers, or Indonesian subsidiary of international capacity building service providers, will bid for each umbrella contract on a competitive basis, in accordance with ADB's Guidelines on the Use of Consultants. However, bidders would include, as necessary, international services and goods required to implement the respective district CB-APs.

As there are 38 districts participating in the project, there will be 38 contracts for Package C-2: District CB-APs

The consultants will provide expertise primarily in relation to: (i) capacity building, (ii) human resources management, (iii) financial management, (iv) ICT, (v) institutional development, (v) curriculum development, (vi) training of trainers, (vii) project management, (viii) audit, and (ix) gender and social development. The consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants using quality and cost-based selection methods and other arrangements satisfactory to ADB for engaging domestic consultants.

Recruitment of Consultants for these consulting packages for all 38 districts are expected to take place in the first and second quarter of 2005.

ADB-financed goods (the ICT package) will be procured by international competitive bidding in accordance with ADB's Guidelines for Procurement.

The project ICT system will set up a network of all project components to facilitate efficient implementation. It will help establish a National Resource Center to be housed in LAN and networked with provincial centers. The Center will house a database of regional capacity-building service providers, and provide forums to exchange essential information for both buyers (e.g., to advertise business opportunities and requests for proposals) and sellers of capacity-building services (e.g., to record experience, capacity and products) and to exchange experience on best practices at senior officer level. The ICT system will develop a web-networked regional system, nationally coordinated by LAN to manage accreditation for short courses on core and specialist skills and certification for trainers. It will also include archives for capacity-building best practice, publications, and a distance learning facility to support part-time and combination training.