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Indonesia: Accelerating Infrastructure Delivery through Better Engineering Services Project

Sovereign (Public) Project | 49141-001 Status: Active

The Accelerating Infrastructure Delivery through Better Engineering Services Project (ESP) will help meet the infrastructure development objectives of the Strategic Plan, 2015 2019, of Indonesia's Ministry of Public Works and Housing (MPWH). ESP will strengthen the MPWH's capacity to efficiently design and implement its increased public investment program by (i) improving the quality and timely start-up of infrastructure projects, and (ii) strengthening the MPWH's public investment management systems. The impact will be the attainment of the infrastructure objectives of the MPWH's Strategic Plan, 2015 2019. The outcome will be strengthened capacity of MPWH's DGH, DGHS, and DGWR to efficiently design and implement MPWH's public investment program. ESP's outputs are:

Project Details

Project Officer
Amr J. Qari Southeast Asia Department Request for information
Country
  • Indonesia
Modality
  • Loan
Sector
  • Water and other urban infrastructure and services
 
Project Name Accelerating Infrastructure Delivery through Better Engineering Services Project
Project Number 49141-001
Country Indonesia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3455-INO: Accelerating Infrastructure Delivery through Better Engineering Services
Ordinary capital resources US$ 148.20 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Rural water policy, institutional and capacity development

Transport / Transport policies and institutional development

Water and other urban infrastructure and services / Urban policy, institutional and capacity development

Gender Equity and Mainstreaming No gender elements
Description

The Accelerating Infrastructure Delivery through Better Engineering Services Project (ESP) will help meet the infrastructure development objectives of the Strategic Plan, 2015 2019, of Indonesia's Ministry of Public Works and Housing (MPWH). ESP will strengthen the MPWH's capacity to efficiently design and implement its increased public investment program by (i) improving the quality and timely start-up of infrastructure projects, and (ii) strengthening the MPWH's public investment management systems. The impact will be the attainment of the infrastructure objectives of the MPWH's Strategic Plan, 2015 2019. The outcome will be strengthened capacity of MPWH's DGH, DGHS, and DGWR to efficiently design and implement MPWH's public investment program. ESP's outputs are:

Output 1: Improved quality and timely start-up of infrastructure projects. This output will support the preparation, design, and delivery of up to 40 projects in irrigation, flood management, bulk water, dam, water supply and sanitation, and national road sectors. These infrastructure projects are to be mainly financed from the government budget.

Output 2: Strengthened capacity in public investment management. This output will strengthen the MPWH's capacity in master planning, survey methodologies and design standards, value engineering, technical and financial assessments during construction, use of multi-year contracting for civil works, asset management, safeguards and procurement systems.

MPWH, through its secretariat general, will be the executing agency, with DGH, DGWR, and DGHS as implementing agencies. MPWH will establish a steering committee to monitor the ESP's overall implementation and ensure ESP-supported projects are prioritized for implementation. A project coordination office will be established at the Bureau of Budget Planning and International Cooperation of the MPWH's secretariat general to support the steering committee. DGH, DGHS, and DGWR will each establish (i) a project management office headed by a project director and supported by administrative staff; and (ii) project implementation units within their respective sector directorates to lead the selection of consultants for project preparation, with participation of concerned local offices of DGH, DGHS, and DGWR, as required. The project implementation units and local offices of DGH, DGHS, and DGWR will establish project teams to review and endorse the outputs of consulting firms for direct payment by ADB. All consultants will be recruited and managed in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).

Under the ESP, a large number of consulting firm contracts will need to be expeditiously procured. Given this, and based on ADB's unique experience in supporting the preparation of large pipelines of PPP projects in India and the Philippines, the ESP will apply the following two-phase method for selecting consulting firms for project preparation purposes: (i) the consulting firms will be selected to be part of a panel, and the empanelled firms will be retained for up to 3 years on a noncommittal basis under indefinite delivery contracts (empanelment phase); and (ii) for preparation of individual projects, a selection will be made from the panel based on the evaluation of full technical proposals submitted by the consultants (call-down phase). MPWH will apply this two-phase approach for the first time under the ESP. The National Public Procurement Agency has encouraged piloting testing this approach at MPWH for eventual replication in other sectors.

Project Rationale and Linkage to Country/Regional Strategy

Ministry of Public Works and Housing (MPWH) leads the government's effort to meet RPJMN, 2015 2019 targets to build 3,650 kilometers of new highways, improve the irrigation network covering 1 million hectares, build 49 dams, attain 100% access to drinking water, reduce slum areas to 0%, and achieve 100% access to improved sanitation, all by 2019. During 2015 2019, the MPWH's infrastructure program is estimated at Rp660 trillion or 47% of the government's infrastructure program. In 2015 2016, Rp207 trillion (about 37% of the government's infrastructure budget) was allocated to the MPWH. Within MPWH, 90% of its budget in 2015 2016 has been allocated to three directorates general: Directorate General of Highways (DGH), Directorate General of Water Resources (DGWR), and the Directorate General of Human Settlements (DGHS).

Efficiency and effectiveness of the MPWH's infrastructure programs has been constrained by complex land acquisition processes, weak procurement capacity, inadequate preparation of infrastructure projects, and poor infrastructure planning and delivery systems. With the implementation of the new land acquisition law and continuous efforts to strengthen procurement capacity, it is now inadequate preparation of infrastructure projects and poor infrastructure planning and delivery systems that critically constrain the MPWH's ability to deliver infrastructure in a timely and good quality manner.

Inadequate project preparation is largely due to (i) lack of resources to complete the required assessments, surveys, designs, and environmental and land acquisition clearances; and (ii) the low quality of feasibility studies and detailed engineering designs, many of which often need to be redone during implementation. Poor infrastructure planning and delivery is mainly due to fragmented and short-term infrastructure development programs, inappropriate or outdated design standards, project fragmentation as reflected in prevalence of small and short contracts, poor construction quality, and ineffective maintenance. Improving project preparation and infrastructure planning and delivery will therefore be critical to enable the MPWH to meet its ambitious infrastructure development targets and increase value for money given the significant increase in its infrastructure budget.

Impact Infrastructure objectives of the MPWH's Strategic Development Plan, 2015- 2019 attained
Project Outcome
Description of Outcome Capacity of MPWH's DGH, DGHS, and DGWR strengthened to efficiently design and implement MPWH's public investment program
Progress Toward Outcome -
Implementation Progress
Description of Project Outputs

Quality and timely start-up of infrastructure projects improved

Capacity in public investment management strengthened

Status of Implementation Progress (Outputs, Activities, and Issues) The consultant selections for the project management at each implementing agencies and one consultant at the dam research center, directorate general of water resources are underway with various stages of selection. Selection of panel of consultants each implementing agencies are also underway
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The date of business opportunities first listing is 30 November 2016
Responsible ADB Officer Amr J. Qari
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Indonesia Resident Mission
Executing Agencies
Ministry of Public Works & Housing
[email protected]
Jl. Pattimura No. 20 Keb. Baru
Jakarta, Selatan, Indonesia
Timetable
Concept Clearance 30 Oct 2015
Fact Finding 24 Mar 2016 to 24 Mar 2016
MRM 21 Jun 2016
Approval 10 Nov 2016
Last Review Mission -
Last PDS Update 29 Sep 2017

Loan 3455-INO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Nov 2016 28 Nov 2016 21 Dec 2016 30 Jun 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 167.60 Cumulative Contract Awards
ADB 148.20 10 Nov 2016 32.56 0.00 22%
Counterpart 19.40 Cumulative Disbursements
Cofinancing 0.00 10 Nov 2016 4.52 0.00 3%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory

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.

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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.

None currently available.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
PMC FOR PMO UNDER DGWR Loan 3455 19 Dec 2017 PT. TETIRA INTERANTIONAL CONSULTANT WISMA PEDE, LT. 4 JL. MT. HARYONO, KAV. 17, TEBET, JAKARTA INDONESIA Min.of Public Works & Housing,Secretariat General 2,455,142.00 2,455,142.00
PROJECT MANAGEMENT CONSULTANT FOR DG OF HIGHWAYS Loan 3455 08 Dec 2017 SMEC INTL PTY NHB BUILDING 1ST FLOOR,JL.MELAWAI RAYA 1 4-KEBAYORAN BARU, JAKARTA SELATAN 12160 AUSTRALIA Min.of Public Works & Housing,Secretariat General 3,574,550.00 3,574,550.00
PROJECT MANAGEMENT CONSULTANT AT DG HUMAN SETTLEME NT MIN OF PUBLIC WORKS AND HOUSING Loan 3455 29 Nov 2017 CIRIAJASA ENG. CONSULTANT JALAN RAYA PASAR MINGGU NO.36D KEL.DUREN TIGA,KEC.PANCORAN, JAKARTA INDONESIA Min.of Public Works & Housing,Secretariat General 3,271,466.00 3,268,804.00
PROJECT PREPARATION CONSULTANT JRAGUNG DAM Loan 3455 17 Oct 2017 PT. INDRA KARYA (PERSERO) JALAN SURABAYA NO. 3A MALANG, EAST JAVA 65115 INDONESIA Min.of Public Works & Housing,Secretariat General 1,761,832.00 1,761,832.00