Indonesia: Neighborhood Upgrading and Shelter Project (Phase 2)

Sovereign Project | 46094-001 Status: Active

ADB is helping some 20 large and medium-sized towns in Indonesia to upgrade basic facilities and services in poor neighbourhoods and establish new settlements for poor families through public private partnerships. The project will develop the capacity of local governments for pro-poor urban planning and management, and establish mechanisms to engage communities in the planning process.

Project Details

Project Officer
Hasanah, Siti Southeast Asia Department Request for information
  • Indonesia
  • Loan
  • Water and other urban infrastructure and services
Project Name Neighborhood Upgrading and Shelter Project (Phase 2)
Project Number 46094-001
Country Indonesia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3122-INO: Neighborhood Upgrading and Shelter (Phase 2)
Ordinary capital resources US$ 74.40 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Water and other urban infrastructure and services - Urban housing - Urban policy, institutional and capacity development - Urban slum development

Gender Equity and Mainstreaming Effective gender mainstreaming
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome The project suffers start-up delays. Delays in the recruitment of consultants and restructuring of the MPWPH have contributed to delays in overall project start-up and implementation and in the compliance of some loan covenants. However, since the restructuring has been completed that that all project management and implementation consultants are mobilized, it is expected that project implementation will be speeded up. As of March 2017, slum upgrading activities (civil works) has been implemented in 209 neighborhoods, and about 150,000 households living in slums have benefitted from the project and 4,900 hectares of slum were covered and upgraded. In general the quality of the work is satisfactory and in accordance with the technical standard issued by DGHS.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

The Slum Improvement Action Plans have been prepared in 20 project cites. The documents have been made as the reference for planning slum upgrading programs.

The cities' infrastructure investments to upgrade slums and poor neighborhoods are in line with the overall development plans.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects

The project is categorized as environmental category B.

Upgrading slum infrastructure will, overall, have positive impacts on the environment and improve the quality of live of the urban population.

Involuntary Resettlement no resettlement issues are envisaged
Indigenous Peoples THe Project is not expected to have any negative impacts on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design consultations with all project stakeholders including potential beneficiaries was carried out.
During Project Implementation during projec implementation, consultations particularly with community members (beneficiaries) will continue.

Business Opportunities

Consulting Services

The project will require an estimated 2,297 person-months of national consulting services at national and district/city levels. Community advisors to assist community in planning and implementing the project will also be recruited (About 3,900 person-months of community advisors will be required under the management consultant team at the regional level).

Consulting service requirement:

A national team of management consultants will assist the PMU and three regional teams of management consultants will cover the following regions: (i) West (Sumatra and Kalimantan), (ii) Central (Java and Nusa Tenggara), and (iii) East (Sulawesi and Maluku). The national management consultant (NMC) will be responsible to help the DGHS in the overall project management and implementation. The NMC will also be tasked to supervise and evaluate the performance of the RMCs. NMC should ensure that works carried out by the RMCs are in line with the project design and guidelines. RMCs will report to the DGHS and the NMC. In implementing their tasks and responsibilities, RMCs will be guided by project guidelines and procedures (JUKLAK/JUKNIS and other guidelines) that will be prepared by DGHS with the supports from the NMC.

Each regional team will also have city coordinators; which will be assigned specifically in each participating city/district. The community advisors will also be contracted under the regional consultant contracts. The national team will assist the DGHS is the overall project management and implementation. The RMCs will assist DGHS and LCOs in the project management and implementation at the regional level through providing technical and managerial support, establishing and implementing a sound financial management and monitoring system, implementing the complaints-handling mechanism, implementing the PPMS, which is a part of the M&E framework, and (vi) undertaking training of community advisors, and community members (BKM/CIO).

Three individual consultants will also be recruited to carry out an independent monitoring and evaluation of the safeguards. At the end of project implementation, a team of consultant will be recruited to conduct an impact evaluation and assist the EA in the preparation of a project completion report.

Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality cost ratio of 80:20. The consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). The management consultants as well as the impact evaluation consultants will be recruited through national firms.

Procurement All procurement to be financed under the ADB loan will be carried out in accordance with ADB's Procurement Guidelines (2012, as amended from time to time). Depending on the complexity of technical designs to upgrade infrastructure, civil works will be carried out directly by the communities or tendered to construction firms. It is expected that a large proportion of civil works will be managed by communities through their CIOs and carried out by local manual labor. Simple civil works for neighborhood investments will be contracted out to the communities based on an agreement between a BLM/CIO and city Satker/LCO, and in compliance with the requirements for community participation in procurement as specified in ADB's Procurement Guidelines. Community contracts will include evidence of community facilitation, the design of facilities to be constructed under the contract, a community O&M plan for these facilities, and clear duties and responsibilities of both parties for the project activities. The first two community contracts in selected five cities will be submitted to ADB for prior approval. All contracts will be monitored under the management information system. More complex infrastructure upgrading works, which the community is considered not to have sufficient capacity, will be contracted out to firms/contractor to be engaged by the EA through the city satkers.

Responsible Staff

Responsible ADB Officer Hasanah, Siti
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Indonesia Resident Mission
Executing Agencies
Directorate General of Human Settlements,MOPW
Jl. Pattimura No. 20
Kebayoran Baru
Jakarta, Indonesia


Concept Clearance -
Fact Finding -
Approval -
Last Review Mission -
Last PDS Update 30 Mar 2017

Loan 3122-INO

Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Mar 2014 23 Apr 2014 17 Jul 2014 30 Jun 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 102.00 Cumulative Contract Awards
ADB 74.40 31 Mar 2014 46.74 0.00 63%
Counterpart 27.60 Cumulative Disbursements
Cofinancing 0.00 31 Mar 2014 39.06 0.00 53%

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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Neighborhood Upgrading and Shelter Project - Phase 2 Environmental Assessment and Review Framework Jan 2014
Neighbourhood Upgrading and Shelter Project Resettlement Frameworks Nov 2013
Neighbourhood Upgrading and Shelter Project Environmental Assessment and Review Framework Nov 2013

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.


No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
WORKSHOPS Loan 3122 01 Jan 2017 VARIOUS VARIOUS INDONESIA Directorate General of Human Settlements,MOPW Others 237,408.72 240,241.25

Procurement Plan