Indonesia: Sustainable Infrastructure Assistance Program Phase II (SIAP2)

Agriculture, natural resources and rural development / Water-based natural resources management

Energy / Conventional energy generation - Energy efficiency and conservation - Energy sector development and institutional reform - Renewable energy generation - geothermal

Finance / Infrastructure finance and investment funds

Public sector management / Decentralization - Public administration

Transport / Rail transport (non-urban) - Road transport (non-urban)

Outcome and Outputs

Overall outcome. The TRTA cluster will have the following overall outcome: effective identification, preparation, implementation, and financing of infrastructure projects.

Output 1: Infrastructure projects identified and prepared. This output will support preparation of sovereign and non-sovereign infrastructure projects across the energy, , transport, urban services and water resources sectors

Output 2: Enhanced project implementation support. This output will directly support efficient and effective implementation of ADB financed projects in energy, transport, urban services and water resources sectors. Strengthening procurement, quality of implementation supervision, monitoring of social and environmental safeguards will all be areas of support.

Output 3: Knowledge support for infrastructure planning and financing and effective program management. This output will be delivered through a single KSTA subproject with three components. The first component will involve knowledge and policy advisory support around innovative infrastructure financing approaches. The second component will involve knowledge and policy advisory support around infrastructure planning. And the final component will support SIAP2 program management as well as advisory activities of long-term sectoral and safeguard experts.

Priority Themes

SIAP2 will emphasize crosscutting priority themes of (i) innovation and new technologies in project design and implementation, (ii) private sector development by promoting private sector participation in infrastructure including PPPs and advocating investment climate reform as it refers to infrastructure, (iii) innovative infrastructure financing approaches seeking to catalyze co-financing and blended finance for infrastructure investments and in promoting innovative approaches and products in Indonesia's infrastructure landscape to increase project bankability, mitigate risks and attract private-sector participation, (iv) sound public sector management by supporting robust upstream planning, project preparation, public procurement and financial management practices, (v) climate resilience by supporting climate adaptation and mitigation measures in target infrastructure sectors, (vi) gender equity by mainstreaming gender equity throughout ADB's infrastructure projects in Indonesia, and (vii) partnerships by promoting and building on partnerships with and among other multilateral and bilateral development (financing) institutions, private sector infrastructure investors and advisors, and commercial banks.

Implementation Arrangements

BAPPENAS will be the executing agency while relevant infrastructure related ministries, agencies and SOEs will serve as implementing agencies. A Steering Committee will provide strategic and tactical guidance on programming and critical project-related activities of SIAP2. A Strategic Directions Meeting will be held on an annual basis, to review TRTA cluster progress and accomplishments from the previous year, discuss the broad set of deliverables under each output for the year ahead, and allocate annual funding limits to each subproject. A total of 900 person-months of international consultants and 2,100 person-months of national consultants are estimated to be engaged under various subprojects using a mix of recruitment approaches involving both individual consultants and firms