World Bank Document · ITB - Institute of Technology, Bandung P.T. Jasa Marga - Indonesian Toll...

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The World Bank

FOR OFFICIAL USE ONLY

L/Vl S2 .f fS I 'N 12z

Report No. 6905-IND

STAFF APPRAISAL REPORT

INDONESIA

SECOND RURAL ROADS DEVELOPMENT PROJECT

October 12, 1987

Country DepartmentAsia Regional Office

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorizaton.

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CURRENCY EQUIVALENTS(As of May 1987)

Currency Unit = Rupjah (Rp)US$1.00 = Rp 1,650Rp 100 = US$0.06Rp 1 million = US$606

GOVERNMENT OF INDONESIAFISCAL YEAR

April 1 - March 31

UM?ITS AND MEASURES

1 meter (m) = 39.37 inches1 kilometer (km) = 0.62 miles1 hectare (ha) = 2.47 acres

PRINCIPAL ABBREVIATIONS AND ACRONYMS USEDADB - Asian Development BankAADT - Average Annual Daily TrafficBAPPEDA - District Development Planning BoardBAPPENAS - National Planning AgencyDGH - Directorate General of Highways (MPW)DGLT - Directorate General of Land Transport (MOC)DGRD - Directorate General cf RegionaL Development (MHA)DPUTK - Local government department of public worksDPUP - Provincial government department of public worksGOI - Government of IndonesiaILO - International Labor OrganizationINPRES - Central Government Grant to Local GovernmentsITB - Institute of Technology, BandungP.T. Jasa Marga - Indonesian Toll Road CorporationMHA - Ministry of Home AffairsMOC - Ministry of CommunicationsMOF - Ministry of FinanceMPW - Ministry of Public WorksOECF - Overseas Economic Cooperation Fund of JapanPMS - Pavement Management SystemPMU - Project Management UnitRBO - Regional Betterment Office (of DGH)Repelita - Indonesian National Five Year Development PlanSEKNEG - State Secretariat on Procurement MattersSOE - Statement of ExpendituresUNDP - United Nations Development ProgrammeUSAID - U.S. Agency for International DevelopmentVOC - vehicle operating costVpd - vehicles per day

1o0 OMCIL Use ONLY

INDONESIA


STAFF APPRAISAL REPORT

Table of Contents

Page No.

LOAN AND PROJECT SUMMARY ............................... (i)

I. THE TRANSPORT SECTOR

A. Economic and Sector Setting.............,................... 1B. Government Sector and Subsector Objectives. .................. lC. Government Sector Organization............................... 2D. Planning and Sector Expenditures............................ 3E. Sector Performance. ................... , 4F. Bank Goals and Strategy in the Sector....................... 4G. Experience Under Previous Bank Financed Highway Projects.... 4

II. THE ROAD SUBSECTOR

A. Highway Network and Road Use.............................., 6B. Road Transport Industry..................... ................ 7C. Traffic and Transport Regulations.................,.e.... 7D. Administration, Staff and Training, Accounts and Audits ..... 8E. Planning, Design and Construction........................... llF. Road Maintenance.****,oe*ooos.oo..**# 14.FnniG .... ,o. 15

III. THE PMOJECT

A. Project Origin ar. Formulation.............................. 17B. Objectives ...... 17C. Project Scope ............... .. , ........................... 18D. Rationale for Bank Involvemente............................ 18E. Project Description........... ..................... ....... .. 19F. Cost Estimates ............... . . ... 24G. Financing . .......... 26

This report is based on findings of an appraisal mission which visitedIndonesia during February/March 1987. The mission comprised Messrs. Sigfus 0.Sigfusson (Senior Engineer), Joris Van der Ven (Senior Economist) and BertilNilsson (ILO, Engineer).

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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Page No.

H. Implementation and Procurement .............. e............ 27I.* Disbursements.. e0*....... ........ e. .... . .. ... .. .. . .. ... . .. 28

J. Accounts and Audis. 29K. Project Monitoring and Progress Reportingorti.ng..... ...... o 30L. Environmental A s.e c t s 30

IV. ECONOMIC EVALUATION

A. Benefits and Beneficiaries ........ 31B. Annual Works Program Formulation..................... ...... 32C. Economic Rate of Return and Sensitivity Calculationstoons, 32D. Special Evaluation Procedures.................. ......... 33E. Overall Economic Rate of Returne.... 34F. Project Rissks. 34

V. AGREEMENTS REACHED AND RECOMMENDATION.......................... 35

ANNEXES

1. Project Districts and Their Road Networkst wo r ks..*e........... 372. Ministerial Instruction for Institutional Improvements and

Guidelines for Its Implementation ...................... *.... 403. Action Plan for Implementation of Institutional Reforms

for District Roads 534. Scope of Technical Guidelines.... 545. The Maintenance Program for Project Districts ance a Firit

Proposal for a Maintenance Strategy for District Roads ds.,..o. 576. Labor-Intensive Pilot Scheme ........... 627. Terms of Reference for Technical Assistance Services .>.......... 718. Project Management Unit ....... ........... 999. Economic Evaluation ............. 990***99999999*999999*99**99* *. 10610. Selected Documents and Data Available in the Project File....... 118

TABLES

1.1 Transport Sector Allocations under National Development Plans... 1192.1 Road Network Length by Island Group and by Functional and

Administrative Class, 1979/80 and 1984/85.*..******.***.. *.. .* 1202.2 Summary of the Type and Condition of Pavements, 1984/85.....*. 1212.3 Summary of the Type and Condition of Bridges, 1984******..****.* 1222.4 Registered Motor Vehicles, 1974-84........................... 1232.5 Growth in AADT in Indonesia, 1972-84 ....... *..0*0...........*. 1242.6 Distribution of Traffic Count Results by Range of Motor Vehicle

Traffic in 40 Project Districts, 1986.*....................... 1252.7 Average Traffic Composition by Modal Group in 40 Project

Districts, 1986............. ................................ 126

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Pape No.

2.8 Average Traffic Composition by Modal Group and Road Conditionon District Roads in Java, Bali and NTB, 1986 ................. 127

2.9 Expenditures in Highway Sector.................................. 1283.1 Design Standards for District Roads and Bridgeso................ 1323.2 Estimated Scope of Rehablitation/Improvement Works .............. 1333.3 Equipment to be ................................................ 1343.4 Cost Etimates .............................. ........................... 1353.5 Disbursement Schedule. .......... .... ..................... ¢*. 136

CHARTS

2.1 Present Organization of Directorate General of RegionalDevelopment (DORD) ............... . 137

2.1A Future Organization of Directorate General of RegionalDevelopment (DGRD) ............... 138

2.2 Organization of Directorate General of Highway.s (DGH)..H)..... 1392.3 Organization of Provincial Public Works Agency (DPUP)

in 13 Provinces... 1402.4 Organization of Provincial Public Works Agency (DPUP) in

5 Provinces ........ Do#oo*ooo**ooooooooo 1412.5 Organization of District Public Works Agencies..oci es......... 142

MAP IBRD 20238

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INDONESIA


Loan and Project Summary

Borrower: Republic of Indonesia

Beneficiary: The 78 districts participating in the project

Amount: US$190.0 million equivalent

Terms: Twenty years, including five years of grace, at thestandard variable interest rate

Purpose: To reform and strengthen the institutions concerned withdistrict roads in Indonesia and to improve the conditionof these roads through rehabilitation and maintenance in78 districts. The project will provide for: (a) insti-tutional reform through realignment of responsibilitiesfor district roads programs among central, provincial anddistrict government agencies; (b) rehabilitation/improvement of about 6,000 km of district roads;(c) financing parts of a three-year program of maintenancein the project districts; (d) a pilot scheme to improveexisting labor-based road construction and maintenancemethods and introduction of new techniques for thispurpose; (e) construction/rehabilitation of workshops andlaboratories; (f) equipment for construction and main-tenance works, workshops and laboratories; (g) technicalassistance for project implementation, training andstudies of district roads contractors and road componentsof development schemes; and (h) in-country and overseastraining.

Risks: The main risks are slow implementation of the institu-tional reform and of the improvements in programformulation and implementation. The project includesmeasures to minimize these risks.

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Estimated Costs: Local Foreign Total-------- (US$ million) - --

Road rehabilitation/improvement 87.7 47.2 134.9Road maintenance (routine andperiodic 35.2 17.3 52.5

Workshops 0.3 0.1 0.4Equipment 6.7 47.7 54.4Technical assistance 17.9 17.1 35.0Training 1.3 2.2 3.5

Base Cost 149.1 131.6 280.7

Physical contingencies 14.3 8.4 22.7Price contingencies 17.2 12.4 29.6

Total Project Cost /a 180.6 152.4 333.0

Financing Plan:

Government 143.0 - 143.0IBRD 37.6 152.4 190.0

Total 180.6 152.4 333.0

Estimated Disbursements:

Bank FY 1988 1989 1990 1991 1992--- …-…---- (US$ million) …--------------

Annual 2 73 55 40 20Cumulative 2 75 130 170 190

Economic Rate of Return: 29X (first year program)

Map: 20238

/a Identifiable taxes and duties are about US$18.8 million equivalent.

I. THE TRANSPORT SECTOR

A. Economic and Sector Setting

1.1 Indonesia, the world's largest archipelago nation, extends some5,000 km across the equator and comprises several thousand islands; the moreimportant of these are Java, Sumatra, Kalimantan and Sulawesi. The country isendowed with considerable natural resources. Until the early 1970s agricul-ture and forestry constituted the mainstay of the economy and were the mainsource of foreign exchange. Oil assumed a more prominent position in theeconomy when oil prices rose in 1974 and since then the economic situation hasbeen closely tied to developments in the oil mtLrket. In recent years theGovernment has made efforts to broaden the manufacturing base and axport moremanufactured products. However, agriculture with a 25% share of the GDP,remains the backbone of the economy. It provides employment to more than 50Xof the population and accounts fo= about 50% of non-oil exports.

1.2 The distribution of population and economic activities is veryuneven. High population densities, smallholder agriculture and a relativelywell-developed market economy are found on the islands of Js.val Bali andLombok and in some parts of Sumatra and Sulawesi. Estates and commercialagriculture are prevalent in the relatively less populated areas of the largerislands. Subsistence agriculture is still important in outlying areas ofKalimantan and Irian Jaya. About 751 of the population lives in rural areas.

1.3 Transport flows consist mainly of exports of primary products,imports of capital goods and consumer products and movement of intermediateproducts and staple produce from surplus to consuming regions. In the ruralareas there are heavy farm-to-market flows. As the manufacturing base isstill relatively limited, there is as yet no large-scale exchange of manufac-tured goods between regions. Some ten transport corridors, however, displayintense transport activity. These are mainly on Java and between Java andselected points on the other main islands. Jakarta and Surabaya are the focalpoints of transportation flows, Jakarta for the western part and Surabaya forthe eastern part of the nation. All transport modes--road, rail, shipping,air and river--play a role in Indonesia's transport system, and they are moreoften complementary to each other rather than competitive. With an estimatedshare of 701 of cargo and 80% of passenger traffic, road transport, however,is the dominant mode. In all parts of the courntry it plays a key role inpromoting ,he economic interchange between the rural and urban areas. In viewof the archipelagic nature of the country, shipping and air transport arecritical for economic and political integration.

B. Government Sector and Subsector Objectives

1.4 The Government's objectives for transport emphasize: developingtransport in line with the needs of the productive sectors; promoting theeconomic and social integration of the different regions and fosteringnational unity; opening up remote regions through the so-called pioneerservices; creating an integrated transport system; improving the reliabilityand safety of transport services; and promoting efficiency in the variousmodes and transport agencies.

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1.5 In the early national development plans the focus was on upgradingand developing the main road network and establishing pioneer services toremote or poorly accessible areas. This was followed by greater emphasis onexpansion and modernization of facilities in the other subsectors, on districtroad development and on rehabilitation of all road classes. Differences inemphasis are to be noted between the Sumatra-Java-Bali-Lombok chain ofislands, which has a relatively complete network of land transport and ferrylinks, and the other islands, which in general have lower population densitiesand less complete transportation networks. Since the mid-1970s the Governmenthas also established many state enterprises in pursuit of social and/or equityobjectives; these have been given generous financial assistance. In recentyears, in line with increased emphasis on efficiency, the role of the privatesector and the need for introducing a commercial approach in state enterpriseshave received more attention. Adequate maintenance of existing assets was notaccorded high priority in the past but is now being recognized as an importantobjective and Bank finenced projects are assisting in introducing effectivemaintenance programs.

1.6 The district (rural) roads improvement programs are seen as the maininstrument to draw rural and remote areas into the market economy, supportmajor transmigration schemes, and achieve equity and uecentralization objec-tives by redistributing Central Government funds to the regions. The economicand social importance of district roads is highlighted by the high percentageof the population living in rural areas and by the relatively high trafficvolumes on district roads (mostly in the range of 50-200 vehicles/day). TheGovernment, recognizing the key role of district roads in the development ofthe rural areas, initiated large-scale funding programs aimed at district roadimprovement in the late 1970s. The first Rural Roads Development Project (Ln2083-IND) provided funds to support this program.

C. Government Sector Organization

1.7 The organizational structure of the Government has both a functional(line ministries) and a regional dimension. Government authority, however, isessentially centralized: policy-making power is vested in the President andhis Cabinet. The main line ministries and agencies which have responsi-bilities in transport--the National Development Planning Agency (BAPPENAS),the Ministry of Communications (MOC), the Ministry of Public Works (MPW) (forthe development and upkeep of national and provincial roads), and the Ministryof Home Affairs (MHA) through the Directorate General of Regional Development(DGRD) (for the development and upkeep of district roads)--are active both atthe national and regional government levels. The regional government hasthree levels: the provinces; the districts and municipalities (Kabupaten andKotamadya); and the villages (Desa). The first two have some degree ofautonomy. Subject to the approval of the next higher level, they have someregulatory powers. In addition, they can levy taxes and charges to supplementthe budgetary transfers from the Central Government, within the constraintsestablished by it. The province is headed by a governor, appointed by thePresident and responsible to him, but he reports administratively to theMHA. The governor coordinates the activities of the regional offices of allCentral Government line agencies represented at the provincial level. Thedistricts are headed by a bupati who is appointed by the Minister of the MHA,

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on the advice of the provincial governor. The bupati is responsible for alldistrict government activities and is the only link between the district staffand their counterparts in the provincial and Central Government organizations;no formal organizational ties exist. The bupati reports directly to thegovernor. In the highway sector, this institutional setup, which leaves thedistrict road officials largely on their own, has been detrimental to theeffectiveness of the district roads program (paras. 1.16, 2.14).

D. Planning and Sector Expenditures

1.8 Transport secLor planning responsibilities are shared by MOC, whichcovers planning for air, land and sea transport and intermodal coordination;MPW, which covers planning for highways; and BAPPE1NAS, which covers overallcoordination. MOC's central planning function is performed by the Bureau ofPlanning (which is at echelon II level) under the Secretariat General. Inaddition, there are planning divisions for air, land and sea transport (atechelon III) in each of the modal directorates general of MOC. The planningfunction for highways comes under the Directorate General of Highways (DGH) ofHPW and is at directorate (echelon II) level and thus has been accorded ahigher status and role than is the case in the modal directorates of MOC. Theplanning of district road investments is essentially the responsibility of thedistricts themselves within the framework of overall guidelines and a fundingenvelope for each district set by the Central Government. (Planning forroads, district roads in particular, is discussed in Chapter II.)

1.9 Transport planning focusses on the five-year development plans andthe annual uudget cycle. The five-year plans were first introduced in 1969and the current plan--thie fourth--covers the period FYs84-89. These plansdefine broad development objectives and over time have become more explicit interms of physical targets for new investments. The plans, however, areessentially static: while substantial resources are devoted to their initialpreparation there is only limited provision for mid-term or annual reviews/updating or for rolling medium-term plans. Consequently, the annual tranchesof the plan tend to lose relevance during the middle and later years aseconomic circumstances deviate from those underlying plan preparation.Planning as part of the annual budget cycle focuses narrowly on individualaevelopment projects and is weak in terms of priority ranking and overallcoordination of investments.

1.10 In absolute terms, allocations to transport under the successiveplans have continued to increase. The current plan allocated Rp 9,106 billionto transport or 11.6X of total plan outlays. However, the share allocated totransport has decreased gradually from an initial 17% in the first plan. Inthe first two plans three-quarters of transport inves-.ments were allocated toroads but in the last plan the share for roads was less than half(Table 1.1). In parallel, within the road subsector the emphasis has shiftedfrom road construction to road betterment. In broad terms, these shiftscorrespond to changing needs and intersectoral and intrasectoral priorities.

E. Sector Performance

1.11 Overall, the transport sector has been able to meet the rapidlygrowing transport needs of the economy, but capacity bottlenecks exist onparticular links, and in certain parts of the country transport availabilityremains poor. Efficiency in large segments of the sector--rail transport,ports and shipping--is inadequate and costs are higher than they could be.The causes of inefficient operations are numerous and partly relate to thepublic enterprise status of many transport operators characterized byponderous bureaucratic procedures, Government interference in management andpoor accountability. Other causes can be found in excessive regulation, thecompartmentalization of markets, lack of effective competition and shortage ofmanagerial skills. The Government has recognized some of the main deficiencesand their causes and has initiated measures to remedy the most significantproblems, e.g., bold measures were taken in April 1985 to remove cumbersomeregulations in the maritime subsector. The ongoing ports and railway projectssupport specific programs aimed at improving performance.

1.12 Even though the road transport industry is relatively efficient,total road transport system costs are high due to three factors which have ledto rapidly deteriorating roads: (i) inadequate road design and constructionstandards (for national and provincial roads this is now largely a problem ofthe past); (ii) inadequate road maintenance; and (iii) vehicle overloading.These problems are more pervasive and deepseated in the district roadssubsector than for national and provincial roads. However, the Government hasrecognized the importance of both adequate initial standards and subsequentmaintenance and has made significant improvement in the composition of thehighway expenditure program. Continued improvements are necessary,particularly for district roads, and will be supported under the proposedproject.

F. Bank Goals and Strategy in the Sector

1.13 The uncertain outlook for oil prices and the Government's weakenedbudgetary situation underline the importance of measures to promote thetransition to a more diversified economy. Transport sector support for thesemeasures would principally aim at reducing transport costs and enhancing theflexibility and responsiveness of transport services. The broad areas wheresuch improvements can and should be achieved are sufficiently clear, andcurrent projects focus on improving the efficiency in highway construction andmaintenance, in the ports sector and in railways. Bank sector work andproject supervision activities are directed at: (i) sharpening Bank knowledgeof sector performance as it is determined by Government policies and byinstitutional or structural factors; (ii) identifying key needs and, incollaboration with the Government, establishing programs of priority measureswhich can be supported by Bank lending.

G. Experience under Previous Bank-Financed Highway Projects

1.14 The Bank has assisted Indonesia's transport sector through fourmaritime projects (two shipping and two port projects), one railway project,two fertilizer distribution projects and nine road projects. Beginning in

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1969, the Bank has participated particularly in the road subsector: fivehighway projects, a rural roads development project, a toll road project andtwo highway maintenance/betterment projects. The nine highway loans andcredits total US$1,039.2 million (US$869.2 million for highways and US$85 mil-lion each for rural roads and toll roads), an average of 10% of the annualexpenditures on roads. This average will increase in 1987 to about 15% andthen to about 20% when the Second Rural Roads Development Project becotmieseffective.

1.15 Of the nine road projects financed by the Bank, five have beensatisfactorily completed. Project Performance Audit reports have beenprepared for the first four, and a Project Completion Report is being preparedfor the fifth. The Project Performance Report for the Second and ThirdHighway Projects (Sec. M81-4, dated January 6, 1981) found that the secondproject had minor delays and cost overruns, while the third had significantdelays because of mobilization problems in a very remote area and unusuallywet weather and increased construction costs. The Project Completion Report,dated June 15, 1984, for the fourth project found that: (i) constructiondelays were significant (about two years), due mostly to the weak localconstruction industry; (ii) cost overruns were minor; (iii) traffic increaseswere much greater than expected at appraisal resulting in underdesigned works;and (iv) maintenance was inadequate. The Highway Betterment Project(Ln. 2404-IND) and the Highway Maintenance and Betterment Project (Ln. 2717-IND) are progressing on schedule, and experience so far indicates that at thecentral and provincial level, capacity for planning, designing andimplementing extensive highway programs has improved significantly in volumeand quality and further improvement is underway.

1.16 The experience with the ongoing Rural Roads Development Project (Ln2083-IND; Closing Date December 31, 1987), on the other hand, has highlightedseveral serious problems at district level, including weak planning andmonitoring, inadequate design and corqtruction standards, poor construction,inefficient supervision, and lack of maintenance. All of these lead to veryshort investment lives for the roads. Funding for maintenance was establishedin 1984 (para. 2.31) and training of distriPt staff was carried out throughoutthe project period (para. 2.17) but most of tale problems persisted until early1986 when intensive discussions between the Bank and the GOI led to someimprovements through the setting up of a steering committee (para. 2.11);these improvements were, however, limited to the 25 project districts. Theproblems relate mostly to the complex and inadequate institutional setup:neither the MHA as overall manager at the Central Government level nor thedistrict public works departments as implementing agencies at the lowestechelon have the technical capabilities to plan and execute large districtroad programs. The lessons learned from this project have been taken intoaccount in designing the proposed Second Rural Roads Development Project (seeChapter III for details).

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II. THE ROAD SUBSECTOR

A. Highway Netwo.k and Road Use

2.1 Indonesia's road network has grown rapidly in recent years, from126,100 km in 1979 to 205,000 km in 1985 (national roads: 12,400 kmi; provin-cial roads: 39,000 km; district roads: 142,600 km; and municipal roads:11,000 km; see Table 2.1). Although this growth occurred mainly in thedistrict roads (they increased from 78,500 km in 19{1 to 142,600 km in 1985),it resulted more from absorption of existing roads - into the category ofdistrict roads than from new construction, which has been very limitedrecently since the emphasis for all road classes has been on betterment andrehabilitation. The road network will be reclassified and upgraded during thenext 2-3 years with assistance from ongoing Bank-financed projects. In 1985,82,115 km of the total road network were reported paved; about half of themwere district roads. In general the condition of the network has improvedsteadily since rehabilitation began in 1969, after 30 years of neglect.However, many roads are still in poor condition. The information available ondistrict roads suggests that most are unmaintainable (Tables 2.2 and 2.3).Furthermore, an estimated 70% of the national and provincial roads still needrehabilitating.

2.2 In step with an annual average increase of about 14% in the motorvehicle fleet (Table 2.4), road traffic has grown rapidly during the last 15years especially during 1972-79 when the domestic price of fuel was low.Growth rates vary considerably among provinces, but averaged about 13%annually during 1972-84: 17% between 1972 and 1979 and a more modest rate of3% from 1982 to 1984 (Table 2.5). The highest traffic flows are on approachroads to the cities of Jakarta, Surabaya and Bandung in Java, and Medan inNorth Sumatra, where volumes range between 15,000 and 40,000 vehicles per day(vpd). On Java major national roads typically carry 4,000-10,000 vpd andprovincial roads 1,000-4,000 vpd, on most of the other islands, typicalvolumes are between 600 and 4,000 vpd.

2.3 Traffic on district roads is not counted systematically. However,counts available for a sizeable sample of roads from externally financed pre-investment studies indicate wide variations in traffic levels betweenprovinces. Average annual daily traffio. (AADT) was estimated at about 160 vpdon a sample of roads studied in early 1986 as part of the preparation for theSecond Rural Roads Development Project; the average for West Java was about280 vpd as against 90 vpd for the outer islands (Table 2.6). In rural areas,however, motor vehicles account for only a small fraction of total movements--11% in the above sample period. The remaining movements are non-motorized andmotorcycles--69% and 20% respectively in the sample. Of the non-motorizedmovements the largest part are pedestrians, with the balance being bicyclesand various forms of animal-drawn vehicles (Tables 2.7 and 2.8). Thesefigures underline the need to include in the economic evaluation of roadimprovements their impact on non-motorized traffic.

1/ There are unknown lengths of village roads and other unclassified roadsin transmigration, estate and other development schemes.

2.4 Road traffic accidents are a serious socioeconomic problem inIndonesia with about 11,000 fatalities reported annually. Studies financedunder previous highway projects have identified as causes: inadequacies inthe laws and regulations regarding vehicles and traffic and deficiencies intheir enforcement by the police. Measures to improve the situation are beingimplemented under the Highway Betterment Project and the Highway Maintenanceand Betterment Project (see para. 2.9).

B. Road Transport Industry

2.5 An estimated 70% of all freight movements (ton/km) in Indonesia areby roads. Surveys done in 1981 indicated that the share of the for-hiretrucking industry was 301 of the total; privately and publicly owned ownaccount operators had estimated shares of 45% and 25X, respectivelv. For-hireoperators outside the Jakarta region need a license issued by the level IIregional authorities; those within the region need one issued by theGovernor. The requirements for this license are minimal. In Java, but not inthe other islands, interprovincial road freight transport requires a routelicense. In addition to licensing, trucking regulations cover restrictions onoperations in urban areas, weights and dimensions, vehicle inspections andguideline tariffs for interprovincial transpurt. Many of these regulationsare not strictly enforced. Competition is intense in many submarkets, andoverall the industry is reasonably efficient. The supply and quality ofservices are generally adequate; safety standards, however, are poor.

2.6 Buses are estimated to carry about 90% of passengers transported andsome 751 of the passenger-kms travelled. Intercity passenger transport isprovided primarily by private bus companies. PN DAMRI, the state-owned buscompany, provides most urban bus services outside of Jakarta, some interurbanservices, and subsidired pioneer (perintis) services in remote areas whereoperations are not commercially viable. Cooperatives, which are composed ofsmall operators who individually cannot meet minimum bus fleet sizerequirements, provide short distance interurban, rural and urban servicesusing minibuses and microbuses. Bus transport is highly regulated; require-ments and regulations cover availability of facilities, route licensing andscheduling, fleet size and tariffs. Compliance with many of these regulationsand requirements is not well enforced. Tariffs generate adequate revenues forinterurban bus companies, while state-owned intraurban bus services are stilloperated with substantial, but decreasing, subsidies since fares have beengradually increased over the last few years.

C. Traffic and Transport Regulations

2.7 A new Road Traffic and Transport Law replacing the Highway TrafficLaw of 1933 was promulgated in 1965. It defines only the basic outlines ofthe rules that govern the use of the road network. Since implementingregulations were never issued, the regulations relating to the old law anddating back to 1936 still apply. Moreover the provisions of these oldregulations have been subject to frequent amendments and refinement throughnumerous decrees and regulations issued at various levels of government. Thishas resulted in an ill defined and confusing body of regulations withimprecise delineation of responsibilities which seriously hampers enforcement.

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2.8 The above problems are particularly acute in the area of vehicleaxle weight controls. Full responsibility for on-the-road enforcement wastransferred recently from MOC's Directorate of Land Transport (DGLT) to thepolice. Enforcement has been in a state of flux during the last few yearsmostly because of the confusing status of the regulations, illegal fees, lowfines and the excessively restrictive and out-of-date legal axle load limits,ranging from 1.5 tons to 8.0 tons. Random checking has been carried out at alimited number of weighing stations, and DGLT's statistics show that overload-ing has been significantly reduced. However, these findings conflict withvisual evidence and admissions from operators, so some verification of DGLT'sstatistics is needed. It will be achieved during 1987 and 1988 by weigh-in-motion measurements planned to supplement regular traffic counts for DGH'spavement management system (para. 2.20). Furthermore, the Bank will reviewwith GOI its vehicle weight and axle load controls in connection withrevisions of the regulations for traffic and road transport (para. 2.9).improvements in enforcement are expected to result from modernization of theregulations.

2.9 Recommendations for modernizing and streamlining the legal frameworkgoverning road traffic and transport have been prepared under variousstudies. GOI is presently developing comprehensive road transport legislationconsisting of four legal codes: the Highway Code, for the implementation ofthe Road Law of 1980 which has been completed and was issued in 1985, and theTraffic Code, Vehicle Code and Public and Commercial Road Transport Code.Together these three would complete the legislation required to implementadequately Road Traffic and Transport Law No. 3 of 1965. The Vehicle andTraffic Codes have been drafted as part of the Highway Safety Program(financed under the Fifth Highway Project) and are being reviewed by thevarious ministries and agencies. MOC now intends to proceed with preparationof the last component, the Public and Commercial Road Transport Code, and thedecrees and instructions required to implement the three other codes. TheHighway Maintenance and Betterment Project (Ln 2717-IND) is financing consult-ants to assist the Government in drafting the remaining code and the decreesand instructions required for implementation of all the codes. The Governmenthas committed itself under Ln 2717-IND to issue and implement the threeremaining codes no later than June 30, 1988.

D. Admii.istration, Staff and Training, Accounts and Audits

2.10 The highway network is administered by the public works agencies ofthe various tiers of government in accordance with institutional andfunctional responsibilities for the development and operation of highways.These responsibilities were broadly defined in the Road Law of 1980 and itsimplementation regulations of 1985. At the central level, the DGH has primaryresponsibility for the road subsector (Chart 2.2). Road agencies at lowerlevels are, respectively, the provincial public works departments (DinasPekerjan Umum Propinsi-tMPUP) and the district/municipality public worksdepartments (Dinas Pekerjan Umum Kabupaten/Kotamadya-DPUK) (Charts 2.3, 2.4and 2.5). An Indonesian Toll Roads Corporation, P.T. Jasa Marga, wasestablished in 1978 to develop and operate toll roads.

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2.11 The DGH is responsible for the design and execution of most majorroad works in Indonesia. It also coordinates the betterment, maintenance andminor construction programs which are carried out by the DPUPs and it operatesa national highway equipment pool. In2the last few years, through theSteering Committee for District Roads - and its Project Management Unit (PMU)for externally assisted projects, DCH has become increasingly involved inassisting with the management of the district road program funded throughInpres Jalan (para. 2.35).

2.12 Provincial and district road agencies are part of a common systemunder the DGRD in the Ministry of Home Affairs (MHA) (Charts 2.1, 2.1A), whichis responsible, through the Governor, for regulating and monitoring thegovernance of local authorities. It also controls appointments of theirsenior officials, regulates staffing and salaries, reviews their developmentplans, budgets and financial performance. For technical guidance, these roadagencies have access to DGH. However, in practice the application of thissystem is ineffective because it gives rise to many subtle and complexarrangements involving many interlocking relationships.

2.13 Theoretically, the various provincial p!lic works functions arehandled by separate departments within the DPUPs;- for roads it is the DinasBina Marga (DBM). These departments are being established in the largeprovinces where administrative capabilities are well developed. In most otherprovinces staff and equipment for the various DPUP functions will continue tobe shared until sufficient managerial skills are developed for effectiveprovincial highway management. In order to overcome the shortcomings inhighway management at the provincial level, DCH has established RegionalBetterment Offices (RBOs) which design and supervise highway bettermentschemes, Vt these will be phased out as provincial highway managementimproves., Assistance in developing highway management skills at the provin-cial level is being provided under the Highway Maintenance and BettermentProject and further assistance, with specific focus on establishing permanenttechnical liaison with the DPUKs, will be provided under the proposed project(para. 3.17).

2.14 At the central level, functions and responsibilities for thedevelopment and maintenance of district roads are not clearly defined among

2/ The committee consists of the Deputy Chairman for Economic Affairs,BAPPENAS, as Chairman and the members: Deputy Chairman for RegionalDevelopment, BAPPENAS; Directors General for Regional Development and forRegional Autonomy, both in MHA; Director General of Highways in MPW; andDirector General for Budget in MOF.

3/ Reorganization is planned based on a Ministerial Instruction of October1986. Some aspects are still unclear and the new structure will hardlybe in place until late 1988.

41 Some have been reorganized as semipermanent recently for they have beengiven an echelon grading.

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those departments in MHA, MPW and BAPPENAS which are concerned with theseroads. At the provincial and district levels, the principal organizationsassociated with roads in conjunction with the DPUPs and DPUKs are theProvincial Regional Planning Boards (BAPPEDA I), and the Development Bureausand the District Planning Boards (BAPPEDA II), of the Provincial and DistrictSecretariats, respectively. DPUPs report directly to the governor of theprovince and DPUKs to the bupati of the district. The MPW provides the DPUPswith technical direction and some administrative support and they act as theimplementing agencies for many of the Ministry's functions. Despite weakcapabilities, the districts have virtual control over their roads since thereis no direct line of communication between the DPUK and the DPUP and requestsfor assistance from the DPUK must go through the bupati to the governor'soffice and then to the DPUP. This complex and inadequate institutional setupis the cause of most of the problems experienced in district roads developmentand maintenance (para. 1.16). As a first step in resolving these problems,GOI has issued a Ministerial Instruction for institutional reform for theplanning, programming, design, construction and maintenance of district roadstogether with Guidelines for its implementation (para. 3.6). Furthermore, thehighest echelon officials in the district administration have recently heenraised by one grade level, thus improving their career opportunitiessignificantly and removing a serious constraint in the development of thecapabilities of the districts.

2.15 At present, P.T. Jasa Marga's functions are effectively restrictedto the operation and maintenance of toll roads and bridges. Although itscharter provides for it to handle the development of the toll road network,planning and design still remain in DCH.

2.16 In addition to the agencies mentioned above, other institutions areinvolved in road development in the rural areas, particularly those concernedwith agricultural and transmigration schemes. The road components under theseschemes, however, are not adequately coordinated with the road authorities,and their planning and implementation has suffered from many weaknesses. Atthe planning stage, coordination between the Ministries of Agriculture andTransmigration and the road authorities concerning network rationalization,design and construction standards have been very poor or nonexistent; thequality of the construction works has been deplorable and maintenance has alsobeen poor or nonexistent. As a result, these roads generally deteriorate to avery critical state soon after completion. Moreover, Government policy isthat at the completion of these sphemes, the road infrastructure should, inmost cases, be handed over to the district authorities--only exceptionally, tothe provincial authorities. The district authorities are in most cases thenconfronted with severe problems of reconstructing or rehabilitating theseroads, for which they are ill-prepared. The problem tends to be compounded bythe perception that these roads have lower priority than the existing districtroads. There is an urgent need, therefore, to institute improved arrangementsfor handling the road components which are part of development schemes. Forthis reason, the project includes a study to analyze and make recommendationson: (a) design, construction, and maintenance standards for road componentsof development schemes; (b) institutional responsibilities and processes forprogramming, budgeting and implementing the road programs of developmentschemes (including their maintenance); and (c) the process of transferring

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these roads to district and provincial authorities, to ensure, inter alia,that adequate funds would be budgetted for their maintenance and rehabilita-tion, and the capabilities of local authorities would be upgraded as requiredby their additional responsibilities. At negotiations, an agreement wasreached with GOI (a) on terms of reference for the study; and (b) that itwould be completed and submitted for the Bank's review no later than March 31,1989. Its recommendations would be implemented, as appropriate, throughsubsequent agricultuare or highway projects.

2.17 The steadily increasing volume of work and the quality ofengineering imposes strains on DGH as well as on the DPUPs and DPUKs. The DCHpermanent staff has increased by some 10% annually over the last five yearswhile the number of nonpermanent employees has more than doubled over thisperiod. Total DGH staff now exceeds 8,000, 4,000 of whom are permanent.About l1500 are professionals (about l,000 engineers). Despite substantialefforts to expand and upgrade staff, the shortage of qualified personnelremains an important problem for road authorities at all levels. Trainingcontinues to be a major element in DCH manpower management through both MPW'soverall training activities and specific DCH programs, both of which havetrained several thousand DPUP and DPUK technical staff during the last five tosix years. The MHA also has training programs for administrative functions,and it occasionally conducts training in development planning for provincialand district staff. The proposed project will provide for both classroom andon-the-job training of DPUP and DPUK staff (paras. 3.17-3.20, 3.23).

2.18 The DGH's accounting procedures are adequate. Accounts are auditedboth internally and externally. The MPW's Inspectorate General, which reportsdirectly to the Minister, does the internal auditing of DGH. The StateAuditors (BPKP) do the external auditing; these audits are satisfactory. TheRegional and Provincial Inspectorate of MHA audit the district and provincialaccounts internally; the BPKP does the external auditing.

E. Planning, Design and Construction

2.19 The DGH is directly responsible for the planning of national,provincial, and toll roads, it plays an important role in urban road develop-ment and it has a coordinating and advisory role for pl.nning the developmentof district roads. The MPW's Directorate General of Human Settlement (CiptaKarya) helps coordinate long-range planning of regional development, which iscarried out by MPW's various directorates.

2.20 The DGH's Directorate of Planning has improved its planningcapabilities through periodic data collection on traffic, including origin-destination surveys and systematic annual road and bridge conditioninventories of all national and provincial roads. The planning methodologiesit applies for national and provincial roads are basically sound. Reliableprocedures have been developed for screening and ranking highway bettermentproposals. The Highway Maintenance and Betterment Project is assisting in theestablishment and operation of a pavement management system (PMS) for nationaland provincial roads, its associated road inventory, and pavement conditionand traffic surveys, which will effectively integrate highway maintenance intothe planning process. This should provide DGH with the capability of

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developing comprehensive strategies aimed at minimizing long-term transportsystem costs and which are based on choices in respect of design standards forimprovement programs, of maintenance policies and of vehicle specificationsand axle load controls.

2.21 District officials have primary responsibility for planning ofdistrict roadworks. Their approach is based on local knowledge and perceivedpriorities, and does not involve extensive network surveys followed byscreening and ranking analyses. The advantages to this method are that thetime and resources required for planning are minimized and district autonomyis fostered, However, there are clear disadvantages to this approach: a lackof uniformity and rationality in planning; a much lower economic return ofinvestment funds than could otherwise be obtained; difficulty in centralmonitoring and evaluation; and, slow development of district planningcapabilities.

2.22 Systematic planning for district roads began to receive attentionwith the introSt-ion of the Inpres Jalan Program in 1979/80 (para. 2.35).The external funding agencies (World Bank and ADB) supported early efforts toinitiate planning procedures based upon technical criteria. They requiredthat the road improvement programs they would finance be formulated using asystematic planning procedure. In preparing these programs, several alterna-tive forms of collaboration between Government staff (mainly from theSubdirectorate of Rural Roads in DCH) and consultants were used. As part ofthe first Rural Roads Development Project (RRI) a planning approach wasdeveloped which attempted to reconcile the dual aims of ensuring that selectedroad investments were economically justified without placing inordinatedemands on the planning resources required. The approach consisted of aranking procedure based on "zone of influence" criteria, namely a populationindex (cost/head/km) and a land index (cost/hectare/km). An integral part ofthe approach was a set of sample feasibility studies using conventionaleconomic analysis. These were designed to establish the cut-off values forthe indices which correspond to an ERR of 12X. A wanual outlining thisapproach was prepared; it was intended to be used for the preparation of theSecond Rural Roads Development Project and eventually for the district roadsprograms in general. Road planning studies for a Second Rural RoadsDevelopment Project were undertaken in 1983-84 by the DGH planning staff anddistrict staff following the standard manual of procedures. The outcome ofthese studies, however, did not provide a satisfactory basis for appraisal ofa project and in early 1986 the decision was made to start the projectpreparation exercise over again using a modified approach that retained manyof the survey features from the manual of procedures but which complementedthese with systematic traffic counts which, once available, permit rapidscreening.

2.23 Thus, the first attempt at introducing systematic planning indistrict road program formulation was not successful. Several factorscontributed to this. First, use of the manual posed difficulties not onlybecause the resources provided for training the district planning officialshad been inadequate but also because the approach required, inter alia,considerable data to determine the zomnes of influence of the road links andestimate population and cultivated land. Second, statistical analysis of the

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results of the sample studies revealed that the relationship between thepopulation and cultivated land indices and the ERR was rather weak, therebycasting doubt on the predictive value of the indices. Also, there has beeninsufficient recognition, both at district and at Central Government level ofthe benefits to be obtained from improved planning approaches. Finally, manyconstraints have continued to hamper introduction of adequate planning, e.g.,the budgeting system did not provide for timely availability of funds andresources to carry out preliminary planning activities. These experiences indistrict road planning have been taken into consideration in formulating theplanning approach to be used under the proposed project (paras. 4.5 and 4.6).

2.24 The DGH's design work is the responsibility of the Directorate ofPlanning. With about 580 employees, including those of the nine RBOs, thisoffice has demonstrated its capacity to produce acceptable designs for a broadrange of highway and bridge construction and to supervise a large volume ofdesign work by consultants as well. Design work at the provincial and dis-trict levels is the responsibility of the DBMs and DPUKs, respectively; thesedepartments have limited design capabilities, especially the DPUKs, so theproposed project will provide assistance for improvements in the projectdistricts.

2.25 Responsibility for highway construction lies with DGH's threeRegional Operation Directorates for the national roads and some of the majorworks on provincial highways; with DPUPs for the provincial roads and some ofthe minor works on national roads; and with DPUKs for the district roads. Theworks are executed under a variety of arrangements. Most typical for minorconstruction is the use of small contractors who supply labor and localmaterials but use equipment and manufactured materials supplied by therespective road authority. Some ten years ago Indonesia had a relativelysmall number of experienced contracting firms capable of executing major roadworks, and therefore DGH used mainly foreign contractors for such jobs. Sincethen local capability has developed so that there are now 250 "A" class (withno upper limit of contract price) and several thousand "B" class (eligible tobid on contracts up to Rp 500 million (US$300,000]) local contracting firmsregistered in Indonesia. In addition, there are many thousands of smallcontractors, registered as class "C" (eligibility ceiling of Rp 100 millionCUS$60,000]) mostly providing unskilled labor and production and transporta-tion of materials for larger contractors and government agencies.

2.26 The GOI has long recognized the need to improve the capabilities oflocal contractors and has provided assistance by arranging short-term lendingto small- and medium-sized firms at concessional rates and by training con-tractors' personnel. Previous and ongoing highway projects have providedlimited technical assistance for contractors engaged on road works. The long-range development of Indonesia's construction industry was the subject of astudy sponsored by the United Nations Industrial Development Organization(UNIDO) in 1976-77. In addition, the Bank undertook a sector review in 1981identifying problems in the construction, legal, and regulatory fields; thisreview was updated in 1985. The Bank is discussing with GOI the furtherdevelopment of the industry with the main focus on: (i) revision and easingof GOI regulations regarding the industry; (ii) improving support institutionssuch as MPW's Construction Industry Development Bureau and the business

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associations; (iii) improved availability of credit and equipment to localcontractors; and (iv) better organization and management of enterprises.

F. Road Maintenance

2.27 The DBMs are responsible for maintenance of the national andprovincial roads. Recent studies have found that during the past severalyears only a part of the national and provincial roads network has receivedsome maintenance, and most of that was inadequate. The DGH records indicatethat at the end of 1984 about two thirds of the network was still in unmain-tainable condition. The studies also found that routine maintenance isperformed unevenly and inadequately and that periodic maintenance isessentially not carried out, consequently accelerating the deterioration ofthe roads and shortening their life. Furthermore, in spite of reducedallocations during the last few years, physical construction targets haveremained virtually unchanged with the unfortunate consequence that DGHdesigned some road betterment works for a life of only five years or less,thus straining future maintenance efforts still further.

2.28 One of the main reasons for the lack of maintenance has beeninadequate funding. In addition, studies have identified many deficiencies inthe organization, administration and execution of road maintenance of allclasses: (i) through organizational changes during the last three years,DGH's responsibilities for maintenance have been combined with those for otherfunctions thus diffusing the required attention (and diluting the efforts oftechnical assistance) but also creating an overlap of duties; (ii) excessiveresources are inefficiently devoted to collecting and processing informationand to planning, programming and budgeting; (iii) excessively detailed andrigid budget allocations; (iv) long delays (up to six months) in the releaseof funds to the executing unit after the budget has been approved, whichresults in most works being carried out during the wet season; (v) classroomtraining of staff is ineffective (attendance is decided mostly by rank ratherthan need) and very little on-the-job training takes place; (vi) shortage anduneven distribution of strategic materials such as asphalt; (vii) extremelycumbersome procurement procedures, even for very minor expenditures;(viii) inadequate equipment with inadequate maintenance and lacking deploymentprocedures; and (ix) inadequate supervision and monitoring of output butexcessive financial control. Improvement programs are being carried out underongoing highway projects to address these deficiencies with respect tonational and provincial roads.

2.29 To further improve and rationalize the planning and execution ofperiodic maintenance/rehabilitation/betterment, DGH has employed consultantsunder ongoing highway projects to prepare and establish a Pavement ManagementSystem (PMS) for the national and provincial roads in all of the country's 27provinces to analyze on a regular basis the status of the network and estimatethe costs involved in its maintenance and upgrading. Design of the basicsystem is complete and its installation, including a new inventory system,traffic counting and condition surveys and associated maintenance strategy andstandards, is expected to be completed in all provinces by the end of 1988.

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2.30 In addition to the problems caused by the inadequate institutionalsetup (para. 1.16), district roads maintenance, the responsibility of theDPUKs, has been hampered by the same factors described above for national andprovincial roads, and by lack of information on the extent of the maintenanceproblem with the result that it has been largely neglected, particularlyroutine maintenance which is virtually nonexistent. A ministerial instructionestablishing maintenance funding as 25% of annual Inpres Kabupaten funds wasissued in 1984 but has had little effect. Ongoing efforts to improve main-tenance of national and provincial roads will also benefit district roadsindirectly, but will not be sufficient to achieve rapid improvement. The pro-posed project therefore includes specific measures to strengthen maintenanceof district roads (para. 3.10).

C. Financing

2.31 While funding for all road classes comes almost exclusively from theCentral Government, different funding channels are used. All roadworks on thenational road network are financed through the Central Government budgetallocation to DCH under the development (APBN) budget. For provincial roadsthere are four funding channels or sources: (i) a part of the CentralGovernment budget allocation to DGH; (ii) a Central Government grant to theprovinces made specifically for provincial roads programs; (iii) part of ageneral purpose Central Government grant to the provinces; and (iv) provincialrevenues. For district roads there are three funding channels/sources: (i) aCentral Government grant to the district made specifically for district roadsprograms (Inpres Jalan); (ii) part of a general purpose Central Governmentgrant to the districts (Inpres Kabupaten); and (iii) the district's ownrevenues. For toll roads there are three funding sources: (i) part of theCentral Government's allocation to DGH under the development budget to financeland acquisition; (ii) bond issues; and (iii) toll revenue. The domesticfunds mentioned above are supplemented by external funds from lendingagencies, which over time have contributed an increasing share of the totalexpenditures (from 19% in FY82/83 to 40% in FY86/87 (Table 2.9).

2.32 During the period FYs82/83-86/87, total expenditures have increasedin steps, first in FY84/85 and then in FY86/87. Even though in nominal termsthe total level of expenditures was considerably higher in FY86/87, in realterms there has been no increase since FY82/83. Only expenditures on tollroads registered an increase in real terms. In the process their share intotal expenditures increased from 7% to 16%. Expenditures on district roadsremained stationary for four years and increased very substantially inFY86/87, but compared to FY82/83 their share in the total increased onlymarginally from 31.7% to 33.5%. Expenditures on national and provincial roadsincreased modestly in nominal terms but their share in the total declined from65.7% to 54.5%. Provincial roads registered a decline even in nominalterms.

2.33 An analysis by type of expenditure is somewhat complicated as BinaMarga's work activity nomenclature is different from that generally used else-where. However, focusing on the more clearly identifiable activities it isapparent that since FY84/85 expenditures on new construction of national andprovincial roads are not increasing while expenditures on rehabilitation and

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maintenance have increased substantially (albeit from a low start) and nowappear set to continue to increase. In the case of district roads,maintenance expenditure also increased substantially in FY84/85.

2.34 The budget for FY87V88 would indicate that the shift in emphasisfrom new construction to maintenance is firmly established. In the future,increasing attention will have to be paid to the relative priority of thevarious road classes and work activities and, toward this end, the programs tobe financed under the proposed project will be establistied in the context of abalanced highway sector expenditure plan. In addition, the efforts tostrengthen the central planning capabilities at DGH should be vigorouslypursued. The Highway Maintenance and Betterment Project (Ln 2717-IND)provides assistance to DGH's Planning Directorate for this purpose.

2.35 Funding for district roads was established on a systematic basiswith the introduction of tht Inpres (Presidential Instruction) grant programsto district administrations in the early 1970s. The first program, the InpresKabupaten, is a a general purpose program and is determined on a per capitabasis. The districts have traditionally allocated between 60% and 80% oftheir total grant to roads and bridges. The second funding program, InpresJalan, is earmarked solely for roadworks, mainly in districts outside Java andBali. The two Inpres funds together provided an annual budget of about Rp 250billion in ?Y85/86 and FY86/87 (approximately US$155 million). By the year1990, some 195 districts out of a national total of 246 districts are expectedto have received some form of assistance from four external funding sources(para. 3.1). So far, external funds have been channelled through InpresJalan. Foreign financing of district road works reached Rp 35.5 billion inFY86-87, more than 20% of the total.

2.36 In FY80/81 road users contributed only some 43% of road-relatedexpenditures through various taxes and duties. The issue of inadequate costrecovery in the road subsector has received considerable attention in thecontext of the Bank's policy dialogue on the sector. Since then GOI has takenseveral measures to increase road user taxation, including increases in fueland vehicle taxes, with the result that between FY80/81 and FY85/86 revenuesfrom road users increased five-fold. In FY85/86 road user revenues areestimated to have covered 114% of road related expenditures. However, taxeson the different categories of users are not in line with the cost they imposeon the road system. While the major proportion of revenues are generated bygasoline-powered private vehicles, much of the expenditure is attributable tothe needs and damage caused by heavy vehicles. The GOI is committed tomonitor this question and to bring about further improvements in road usercharges (Ln. 2404-IND).

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III. THE PROJECT

A. Project Origin and Formulation

3.1 Improvements in the condition of district roads is essential in viewof their economic and social importance since 75Z of the population lives inrural areas, and agriculture accounts for some 25% of GDP. The Governmentrecognizes the need for urgent improvement and is allocating considerableresources for this purpose. This effort has received support in 25 districtsfrom the Bank financed first Rul Roads Development Project (RRI) and in som65 districts from other donors.- The project continues the efforts fordistrict roads improvements initiated under RRI, which suffered seriousimplementation difficulties, but was put back on course in early 1986following decisive and concerted actions by the GOI and the Bank. Significantprogress has been made since then and this togettwr with the GOI's strongcommitment to the district roads programs, provide the basis for continued andexpanded Bank involvement in the subsector. The proposed project covers 78districts in 11 provinces (Map IBRD 20238 and Annex 1), including the 25districts previously assisted under RRI, with about 45,100 km of districtroads and 21,300 km of national and provincial roads (32% and 41% respectivelyof the total lengths of these road classes). The selection of the districtsstems mostly from attempts to rationalize donor assistance to the districtroads programs which were started in 1980 when GOI asked the donors involvedin district roads development to provide funds for the designated parts of thecountry. Thus 43 of the 53 additional districts in the proposed project wereselected in 1982 for preparation of a follow-up project to the RRI. Lateradditions and changes to the list of districts were made mainly to consolidateproject areas among aid agencies and complete coverage of provinces toeconomize and simplify logistics and to include neglected roads in formertransmigration areas.

B. Objectives

3.2 The aims of the project are: (a) to bring about improvements in themanagement of district roads programs in terms of: (i) planning andmonitoring; (ii) design and construction standards; (iii) work supervision;and (iv) maintenance, through institutional reform consisting of realignmentof responsibilities among ministries and agencies concerned with districtroads programs, including roads in transmigration areas; (b) to providefinancial support for GOI's district roads programs; and (c) to improveexisting labor-based construction and maintenance techniques for such roadsand to introduce new appropriate techniques for this purpose.

51 The ADB has provided assistance to 44 districts, OECF to 21 and isplanning assistance for another 38 districts and USAID is planningassistarce for 11 districts. In total, counting planned and proposedprojects, 192 districts out of the country's 246 districts will havereceived some form of assistance for their road networks by 1990.

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C. Project Scope

3.3 The project would consist of the following:

(a) realignment of the roles and responsibilities of the institutionsand agencies at the central, provincial and district levelsconcerned with district roads programs;

(b) financing of parts of the annual district roadsrehabilitation/improvement programs for 1988/89-1990/91 in theproject districts totalling some 6,000 km or about 13% of thenetwork of these districts;

(c) financing of parts of the annual district roads maintenance programsfor 1988/89-1990/91 in the project districts;

(d) financing of fully equipped workshops and basic soils and materialslaboratories in project districts where none exist, andtools/equipment for existing district workshops and laboratories;

(e) a pilot scheme to improve existing labor-based road construction andmaintenance methods, and to introduce appropriate new techniques forthis purpose;

(f) equipment and spare parts for road maintenance and improvement worksin the project districts;

(g) consultant services to assist in institutional reform and associatedtraining programs and in the preparation of annual work programs andproject implementation, to train district staff in those functions,and to carry out studies of civil works contractors and roads builtunder development schemes; and

(h) training for some 2,000 provincial and district staff concerned withroadc and overseas training for some 100 middle and higher levelprovincial and district road officials.

D. Rationale for Bank Involvement

3.4 District roads are in urgent need of improvement and the GOI isallocating considerable resources to the subsector. Yet, the effectiveness ofthese funds is being hampered by an inadequate institutional setup. Thereform of a long established institutional setup involving various ministriesand agencies is, however, a major undertaking with many dimensions. TheBank's involvement is intended to help overcome traditional resistance toinstitutional changes in the district roads subsector, and ensure their satis-factory implementation over a realistic time frame. Furthermore, in view ofthe deterioration in GOI's budgetary situation, there is a a risk that cut-backs in budgetary allocations for roads will undo the modest but importantimprovement in the district road network achieved in recent years. Bankinvolvement would contribute to the availability of adequate funds fordistrict roads, and also to better utilization of resources.

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E. Project Description

Institutional Reform

3.5 Several institutional deficiencies have hampered the administrationof the district road programs at the central, provincial and district levels(paras. 1.7, 1.16, 2.14-2.26). In the case of the central Government,functions and responsibilities for district roads are not clearly definedamong concerned departments in the MHA, MPW, MOP and BAPPENAS. At theprovincial level, there is little effective involvement in the district roadsprograms. In the districts, administrative and technical capabilities areweak in terms of numbers and competence of staff and adequacy of procedures toexecute the responsibilities assigned at this level for the extensive roadnetworks and to properly exercise their authority over the district roadbudgets.

3.6 The project will address these problems by realignment of the rolesand responsibilities of the various agencies involved in district roadsprograms at the three levels of government as well as by strengthening of theagencies at the district level through provision of technical assistance andtraining. The aim of the institutional reforms is improved efficiency throughimproved planning, programming, budgetting and supervision of works and theestablishing of appropriate maintenance of district roads. The GOI has issuedin May 1987 a Ministerial Instruction for the realignment of roles andresponsibilities together with Guidelines for its implementation and, in July1987, an addendum to the Guidelines to firm up arrangements for tendering andcontract award (Annex 2). The Ministerial Instruction and the Guidelines area satisfactory basis for the short- to medium-term improvement of the planningand execution of district roads programs provided the technical guidelines tobe issued by DGH are in accordance with earlier agreements with Bank staff.At negotiations, an agreement was reached with GOI (a) on an Action Plan andtime frame for implementation of the institutional reforms (Annex 3) and onthe review of the Plan and its updating by March 31 in the years 1989, 1990and 1991; (b) on the substance of the technical guidelines (Annex 4); (c) thattechnical guidelines satisfactory to the Bank will be issued by February 29,1988; and (d) that none of these documents will be changed without priorconsultation with the Bank.

3.7 The Ministerial Instruction (together with its implementingGuidelines) covers all aspects of the preparation, execution and supervisionof all district roads in Indonesia regardless of the source of finance andgives responsibility for technical matters to DGH and the relatively welldeveloped DPUPs. This new res-onsibility will first be applied in the projectdistricts mostly through project financed technical assistance and training,followed soon in other districts currently receiving donor assistance. Theremaining about 85 districts (out a total of 243) would be receiving DGH andDPUP assistance and training to gradually apply the technical guidelines. Ingeneral, it should be expected that it will take a few years for the agreedpl aing/selection/evaluation procedures to be fully applied, while purelytechnical aspects should be relatively easily adopted.

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Road Rehabilitation/Improvement

3.8 The 6,OOO km of rehabilitation/betterment works will involve severalhundred sections of seriously deteriorated district roads with lengths varyingbetween 0.5 km and 25.0 km. Traffic counts on roads studied in 1986 forinclusion in the first year program found that more than two thirds ofrecorded movements was non-motorized traffic. The AADT of motorized traffic(excluding motorcycles which outnumber motor vehicles by almost two to one)was just over 150 vpd; in West Java the average was about 300 vpd comparedwith less than 100 vpd outside of Java. Traffic volumes of less than 90 vpdwere found on 9% of project sections in West Java and on 47% of sectionsoutside West Java while volumes of over 1,000 vpd were found respectively on6% and less than 1% of sections. The roads will be brought up to minimumstandards based on projected traffic volumes and topography (Table 3.1);existing alignment will be retained to the extent possible. Works will bedesigned for a ten year lifetime and would include, as required, rehabilita-tion of pavement layers, shoulders, side and cross drainage and bridges. Thetraditional pavement surfacing on district roads is penetration macadamcarried out by labor-intensive methods. When adequately done this gives asatisfactory surfacing but workmanship has deteriorated and specifications areinadequate; improvements will be introduced under the project through newspecifications and technical assistance and subsequently through the resultsof the labor-intensive pilot scheme (para. 3.12). Other surfacing methods willbe introduced under the project such as single and double bituminous surfacetreatments, cold mix asphalts and hot-rolled sheets when works are closeenough to an operating asphalt mixing center for such overlays to beeconomical.

3.9 The first year program of about 2,000 km is being selected on thebasis of an approach agreed with the Bank during project preparation. Theselection, design and detailed engineering for about 1,000 km have been com-pleted in accordance with agreed standards and specifications. Implementationis expected to start in June 1988. About 50% of works in the first yearprogram are expected to be rehabilitation of sealed roadst about 25% improve-ment of gravel roads to sealed standard, about 15% rehabilitation of gravelroads and about 10% improvement of earth roads to gravel standard. The selec-tion and evaluation of subprojects for the second year program has alreadystarted. The estimated scope of rehabilitation/improvement works by provinceis shown in Table 3.2. During negotiations, an agreement was reached with GOIthat proposals for the three annual programs of rehabilitation/improvementworks selected in accordance with procedures for subproject identification andevaluation (paras. 4.5, 4.6, 4.9), will be submitted to the Bank for review byFebruary 29, 1988, December 31, 1988, and December 31, 1989, respectively.These programs will be established in the context of a balanced highway sectorexpenditure plan and the programs for the second and third year will onlyinclude subprojects located in districts which have satisfactorily implementedboth their rehabilitation/improveme.t programs and their maintenance programs(para. 3.10) during the previous year.

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Maintenance

3.10 This component comprises parts of the annual district roads mainte-nance programs in the 78 districts over the years 1988/89-1990/91. The firstyear program is expected to include some 4,500 km in districts wheremaintenance equipment and a detailed work program are expected to be available(Annex 5). In the second year somne 10,000 km should be maintained, while inthe third year all maintainable district roads in the 78 districts, some19,000 km, should be included. At negotiations, GOI agreed: (a) that thefuture countrywide maintenance strategy for district roads, includingtechnical and performance standards, intervention levels, funding formulasbased on needs and monitoring criteria, will be designed in detail andsubmitted to the Bank for review and approval before February 29, 1988; (b) tosubmit for Bank review and approva' before February 29, 1988, December 31,1988 and December 31, 1989 maintenance programs for project districts forrespectively 1988/89, 1989/90 and 1990/91 based on the agreed strategy,including both physical and budgetary aspects; and (c) that only the districtswhich have implemented satisfactorily their 1988/89 and 1989/90rehabilitation/improvement and maintenance programs would be eligible for theproject's 1989/90 and 1990/91 rehabilitation/improvement programsrespectively; implementation of the programs would be monitored throughperiodic reports on the basis of payment certificates issued by thesupervising consultants supplemented by quarterly photographic surveys. Afirst draft of a future strategy is presented in Annex 5.

Workshops

3.11 Major repair and overhaul of district equipment will be carried outin the provincial workshops but proper workshop facilities need to beestablished in all project districts in order to carry out the servicing andpreventive maintenance of road equipment. Under the project fully equippedworkshops and basic laboratories will be staffed and operated in all 78districts. Well equipped workshops have been established in all of the 25districts included in the RRI including laboratories for basic testing ofsoils and materials. Workshops exist in 50 of the 53 additional districts butseven of those will be rehabilitated and three new workshops will be builtunder the project. Equipment, tools and instruments will be provided for sixworkshops and laboratories as summarized in Table 3.3.

Labor-Intensive Pilot Scheme

3.12 Traditional labor-intensive methods are widely used in Indonesia forconstruction and maintenance of rural roads and other small-scale publicworks. Government policy aims at maintaining the use of labor-intensivemethods where they are suitable and limiting the use of capital-intensivetechnology to activities for which no labor-intensive technology is availableor to areas where manpower is very scarce. The traditional methods have, how-ever, remained basically the same for decades since no systematic efforts havebeen made to improve them. As a result, the quality of construction andmaintenance is not satisfactory and the cost of labor-intensive constructionis not as competitive with equipment as expected considering the low cost ofmanual labor.

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3.13 Experience from rural roads projects receiving assistance from theBank and ILO in other developing countries suggests that considerablepotential exists for improvement in the quality and efficacy of the labor-intensive methods employed in Indonesia. The pilot scheme included in theproject will develop and intr'duce improved techniques, supervision andorganization for labor-based construction and maintenance of district roads,with the intention of gradually replicating the results of the pilot scheme inother parts of the country. It will be carr-ad out in four districts, two inWest Java and two in West Kalimantan in connection with rehabilitation/betterment of about 80 km of district roads and maintenance of about 180 km.Annex 6 has further description of the pilot scheme.

Road Construction and Maintenance Equipment

3.14 Preparation studies for the project have shown that some of theequipment procured under RRI was not fully suitable for the size and scope ofworks it was intended for in the 25 districts. New analyses have been made todesign an equipment fleet more appropriate in terms of types, sizes andnumbers to carry out efficiently routine works and maintenance by forceaccount and partly to lease out to contractors who lack certain essentialequipment. Table 3.3 shows the equipment and spare parts required for the 78districts that will be procured under the project.

Equipment and Tools for Labor-Intensive Pilot Scheme

3.15 The pilot scheme will test a wide variety of hand tools and variousdegrees of labor-plant mix using intermediate size equipment such as agricul-tural tractors with attachments and trailers, towed rollers, etc. A tentativelist of equipment is shown in Table 3.3. However, because of the trial/demon-stration nature of the scheme some flexibility to change types, sizes andnumbers of equipment is allowed for.

Technical Assistance

3.16 General. Four types of technical assistance will be provided to theagencies concerned with district roads: (a) technical support to the DPUKs;(b) technical support to the PMU; (c) training support to DPUKs, DPUPs andITB; and (d) technical assistance for the labor-intensive pilot scheme. Theproject would also include two studies concerning: (a) contractors andcontracting for district roads; and (b) improved arrangements for handlingroads built under development schemes. Draft terms of reference for theseservices, as shown in Annex 7, were reviewed and agreed upon at negotiations.

3.17 Technical Support for the DPUKs. This support is required for theplanning, programming, implementation and supervision of the annual programsfor rehabilitation/improvement and maintenance of district roads and for on-the-job training of DPUK staff in these fields. GOI will employ foreign andlocal consultants for this purpose some of whom will be stationed in the pro-vincial centers and others in the district centers to work with the DPUP andDPUK staff on a daily basis. To facilitate administration and coordination,the services will be divided into the three geographical areas used by DGH(Western, Central and Eastern Regions). In addition, DCH will provide to the

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DPUKs on a secondment basis experienced engineers for up to three years whileDPUK staff are being trained. The proposed project will provide technicalassistance to the DPUKs for about 5,466 man-months, of which 996 man-monthswill be foreign and 4,470 mar.-months (1,830 man-months of professionals' and2,640 man-months of sub-professionals' services) will be local consultants'services. These consultants should mobilize by March 1988 when consultants'contracts tinanced under RRI wiil expire.

3.18 Technical Support for the PMU. Technical assistance to the PMU byforeign and local consultants is required to support and train staff drawnfrom the DGRD and DCH to ensure efficient project implementation andinstitutional development (para. 3.27). The consultants will also assist inthe preparation of standard guidelines for the planning, programming, designand supervision of construction and maintenance of district roads. Theservices will be required until about mid-1991 and the project would providefor about 1,230 man-months of technical assistance, including 378 man-monthsof foreign and 912 man-months of local consultants' services. Theseconsultants should mobilize by March 1988 when consultants' contracts financedunder RRI will expire.

3.19 Technical Support for the Labor-Intensive Pilot Scheme. The pilotscheme will require substantial technical assistance for the planning,execution and supervision of the trial and demonstration tasks and fortraining of DPUK staff and interested local contractors and consultants. Theproposed project will provide for about 300 man-months of technicalassistance, including 160 man-months of foreign and 140 man-months of localconsultants' services. The foreign advisors should mobilize by November 1988and the local consultants by early 1989.

3.20 Training. Technical assistance is required for: (a) review,evaluation and improvements of existing MPW, DGH and MHA classroom and on-the-job training programs for technical and administrative staff of the districtsand provinces concerned with district roads; (b) certificate programs for roadand bridge engineers (five 16-week programs); and (c) administration ofoverseas training of provincial and district staff concerned with districtroads. For this purpose, the proposed project will provide for about 169 man-months of technical assistance, including 48 man-months of foreign and 121man-months of local consultants' services (see also para. 3.23). Trainingprograms will be submitted to the Bank by September 30, 1988 and will beimplemented.

3.21 Study of Contractors and Contracting for District Roads. Thecapabilities and performance of the small contractors used for civil works ondistrict roads (class "C" contractors) have continued to present problems.Among major concerns requiring attention are: the appropriate level ofsophistication of contract documents; types cf contracts, contract period,system of supervision and certification of work for payment, minimum contrac-tor capabilities for the standard of district roads, and the ways and means ofencouraging growth of small contractors including ownership of an appropriateequipment fleet. Therefore, the proposed project will provide for about 36man-months of technical assistance, including 12 man-months of foreign and 24man-months of local consultants' services, to carry out a study that will

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recommend measures to address the problems of the small contrActors used forwork on district roads. The terms of reference for the study are inAnnex 7. The study should be completed by March 31, 1989.

3.22 Study of Improved Arrangements for Handling Roads built underDevelopment Schemes. The rationale for this study is developed in para.2.16. It would require about 60 man-months of technical assistance, including24 man-months of foreign and 36 man-months of local consultants' services.The study should be completed by March 31, 1989.

Training

3.23 While Indonesian universities, schools and vocational trainingfacilities are capable of providing basic training related to the planning,design construction and maintenance of district roads, more specializedtraining in these fields is not readily available and the most advancedtraining in highway related fields and in project management can only beobtained overseas. The project, therefore, includes: (a) in-countrytraining, formal and on-the-job, of some 2,000 district and provincial staffconcerned with district roads; and (b) advanced training overseas for some 100middle and higher level district and provincial officials concerned withdistrict roads. During negotiations, an agreement was reached with GOI thatDGH and DGRD before September 30, 1988: (a) review, evaluate and make recom-mendations for improvements in short-and long-term training for district andprovincial staff concerned with district roads and, in consultation with theBank and in accordance with an agreed action plan, introduce improvements inthe regular training programs of MPW, DGH and MHA for those staff; (b)establish and make operational certificate course programs for road and bridgeengineers and (c) submit an overseas training program for the Bank's reviewand approval. The project would finance, as appropriate, local andinternational tra-vel, subsistence, course fees, training materials and aidsand consultants services (para. 3.20).

F. Cost Estimates

3.24 The total project cost is estimated at US$333.0 million(Rp 51?.5 billion equivalent), including taxes and duties of US$18.8 mil-lion.' It includes: (a) physical contingencies of 10% on the base cost ofcivil works and technical assistance and 15% on training; and (b) price con-tingencies of 3.0% during 1987, 1.0% during 1988-90, and 3.5% during 1991 onthe foreign component and of 10.0% during 1987, 5.0% during 1988 and 3.5%during 1989-1991 on the local component. The direct and indirect foreignexchange component is estimated at US$152.4 million or 46% of total cost.Detailed cost estimates are given in Table 3.4 and summarized below:

7/ Includes US$11.4 million of identifiable taxes and duties on civil works,US$5.9 million on procurement of equipment and US$1.5 million taxes onthe services of consultants.

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Estimated Costs ForeignComponent Local Foreign Total as Z of

------ US$ million ----- …- total

Civil WorksRoad rehabilitation/improvement 87.7 47.2 134.9 35Road maintenance (routine andperiodic) 35.2 17.3 52.5 33

Workshops 0.3 0.1 0.4 25

Subtotal 123.2 64.6 187.8 34

Equipment 6.7 47.7 54.4 88

Technical Assistance 17.9 17.1 35.0 49

Training 1.3 2.2 3.5 63

Total Base Cost 149.1 131.6 280.7 47

ContingenciesPhysical 14.3 8.4 22.7 37Price 17.2 12.4 29.6 42

Subtotal 31.5 20.8 52.3 40

Total Project Cost 180.6 152.4 333.0 46

3.25 The base costs are estimated as of September 1987. In the case ofcivil works, estimates are based on updated and adjusted recent unit pricesfor similar works under highway projects and force account works carried outin 1986. Rehabilitation/improvement works are estimated to cost US$23,100 perkm for sealed roads and UTS$21,100 per km for gravel roads. Routine main-tenance is estimated to cost about US$260 per km for sealed roads, aboutUS$1,470 when drainage improvements are included, and US$570 for gravel roads,about US$1,830 when drainage improvements are included. Periodic maintenanceof sealed roads is estimated to cost US$6,500 per km and US$2,300 for gravelroads; the cycle for periodic maintenance is assumed to be four years. A newworkshop is estimated at US$60,000 and rehabilitation and upgrading ofexisting ones about US$25,000. The cost of equipment for construction andmaintenance operations, for workshops, and for laboratories is based on recentbids updated to September 1987 price levels. A summary of the requiredtechnical assistance consultant services and their estimated cost is tabulatedbelow:

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Type of Foreign Local Basetechnical consultants consultants Total costassistance ------------ man-months -------------- US$ million

For DPUKs 996 4,578 5,574 23.2For PMU 378 912 1,290 8.4For training 48 121 169 1.1For labor-intensivepilot scheme 160 /a 140 300 1.6

Studies of contractors anddevelopment scheme roads 36 60 96 0.7

Total 1,618 5,811 7,429 35.0

/a Includes 96 man-months of UN-Volunteers' services.

The cost of training is based on the cost of ongoing similar programs both in-country and overseas.

G. Financins

3.26 Financing of the proposed project will be as follows:

Source of Tinance Local Foreign Total…(---------(US$ million)-----------

00I 143.0 - 143.0Bank 37.6 152.4 190.0

Total 180.6 152.4 333.0

The proposed Bank loan of US$190.0 million will finance about 57% of totalproject cost or about 60% net of taxes and duties. The project districtswould finance the remaining US$143.0 million equivalent, or about 43% of thetotal estimated project cost through annual budgetary allocations from thecentral government grant programs Inpres Jalan and Inpres Kabupaten. TheBank's 601 share of project financing is similar to that of current operationsin Indonesia. The resulting local cost financing (211 of local costs) isjustified by Indonesia's very tight budget situation, which is expected tocontinue in the near future, and the need to mair.tain an adequate roadworksprogram funded from GOI's own resources in the districts which are notsupported by donor projects.

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H. Implementation and Procurement

3.27 The project will be implemented over about three years by the DPUKsin the 78 project districts, assisted by seconded DGH engineers, DPUPtechnical staff and technical assistance consultants. The PMU, on behalf ofDGRD under the overall guidance of the Steering Committee for District Roads,will be responsible for ensuring effective implementation of the project on aday-to-day basis, including the institutional improvements and overall projectcoordination. The PMU will also be responsible for selective monitoring andevaluation of the impact of investments in district roads. The structure andstaffing of the PMU was revised in early 1986, but in view of its expandedresponsibilities and increased workload, an ilreement was reached with GOI atnegotiations on restructuring and strengthening the PMU (Annex 8) and onemploying an additional number of qualified key staff in order to improve itscapacity to monitor the progress of the institutional reforms and of projectimplementation, and to manage projects financed by other aid agencies. Afull-time unit chief has been appointed and is in post. The ILO, on behalf ofthe GOI, will implement the labor-intensive pilot scheme. The project will becompleted by March 31, 1991.

3.28 Procurement arrangements are summarized in the table below:

Procurement method TotalICB LCB Other cost

Project Element- US$ millior.---------

Road rehabilitation/improvement - 146.6 16.3 a/ 162.9- (58.7) (6.5) (65.2)

Road maintenance, periodic - 18.0 9.0/a 27.0- (7.2) (3.6T (10.8)

Road maintenance, routine - 3.0 34.2 /a 37.2- (1.2) (13.7) (14.9)

Workshops - 0.4 - 0.4- (0.2) - (0.2)

Equipment and spare parts forconstruction and maintenanceworkshops, laboratories, and 58.5 0.3 - 58.8labor-intensive pilot scheme (51.9) (0.3) - (52.2)

_ (0.0) (0.0)Technical assistanceand training - - 46.7 46.7

- - (46.7) (46.7)

Total 58.5 168.0 106.5 333.0(51.9) (67.3) (70.8) (190.0)

/a Force account (some of these works may be let to contractors through LCBin the project's second and third years.

Note: Figures include physical and price contingencies and those inparentheses are the respective amounts financed by the Bank.

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3.29 The civil works are scattered over vast areas and although work willbe packaged to the extent possible, the size of contracts is expected to betoo small (about US$300,000 on average) to attract foreign contractors. Civilworks for road rehabilitation/improvement, periodic maintenance and workshopswill therefore be carried out by contracts awarded under local competitivebidding (LCB) procedures which are acceptable to the Bank and open forparticipation by foreign contractors. In order to improve the quality ofconstruction, GOI assurances were obtained at negotiations that contractorsinvited to bid on civil works will be those registered as class Bi contractorsor above. While force account works will in general be kept to a minimum, apart of rehabilitation/improvement and periodic maintenance works would,however, be carried out by force account, to facilitate on-the-job training ofthe staff of the DPUKs and interested contractors. Implementation of thesecomponents will start in about June 1988 and would extend through April1991. Civil works for routine road maintenance would be carried out mostly byforce account by DPUK staff but contracting may be tried on a small scalethrough LCB in the second and third years. Standard bidding documents forcivil works have been agreed with GOI, but as no contracts are expected toexceed US$0.5 million, actual bidding documents, bid evaluation reports andcontracts will be kept by the DPUKs with copies at the PMU for subsequent Bankreview.

3.30 Apart from some equipment and tools for the labor-intensive pilotscheme (up to a total amount of US$300,000) that may be procured through LCB,all equipment, together with associated spare parts (US$58.5 million), will beprocured in accordance with ICB procedures and Bank guidelines for procurementand all documents will be subject to the Bank's review and approval prior toinvitation to tender. In bid comparison and evaluation, domestic manufac-turers will be granted a margin of preference of 15% or the prevailing importduty, whichever is lower. Delivery of equipment is expected to be completedin early 1989. Except for expatriate consultants' services for the labor-intensive pilot scheme that will be selected by ILO in accordance with UNrules, consultants will be appointed in accordance with Bank guidelines and onterms and conditions satisfactory to the Bank, and GOI's assurance to thiseffect was obtained at negotiations.

I. Disbursements

3.31 The loan funds would be disbursed on the following basis:

(a) Civil Works:

ti) 40% of total expenditures of each of the three annual programsfor rehabilitation/improvement and periodic maintenance incurredbefore April 1 1989, 1990 and 1991, respectively;

(ii) 75% of total expenditures of the 1988/89 program for routinemaintenance, 50% of the 1989/90 program and 25% of the 1990/91program incurred before April 1, 1989, 1990 and 1991 respec-tively; and

(iii) 40% of total expenditures on workshops;

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(b) Equipment and Spares for Construction, Maintenance, Workshops andLaboratories and Labor-Intensive Pilot Scheme: 100% of foreignexpenditures for directly imported items; or 95% of local expendi-tures (ex-factory) of locally manufactured items, or 65% of expendi-tures on locally procured items;

(c) Consulting Services: 100% of expenditures; and

(d) Training: 100% of expenditures.

Disbursements for items (b) and (c) will be made against full documentation ofexpenditure while disbursements for all other items would be on the basis ofStatements of Expenditures (SOEs). Withdrawal applications for items (b), (c)and (d) would be aggregated to conform to the following minimum thresholds:reimbursement--US$60,000 equivalent; direct payment--US$10,000 equivalent; andspecial commitment--US$10,000 equivalent. The schedule of estimated disburse-ments is shown in Table 3.5; it differs substantially from the disbursementprofile for standard highway projects (which require some six years forcompletion), mainly because the project is limited to a time-slice (threeconsecutive annual programs) of the road programs of 78 districts.Disbursements are expected to be completed in about three and one-half years.

3.32 In order to expedite and facilitate disbursements, GOI intends toset up a Special Account in the Bank of Indonesia with an initial deposit fromthe loan of US$8.0 million to serve as a revolong fund for covering localcurrency payments of civil works expenditure., Only eligible projectexpenditures, certified by PMU, would be made from the Special Account. ThePMU would manage all accounting records but preparation of supporting docu-ments for SOEs. which will be retained by PMU for inspection by Bank staffduring supervision visits, will be the responsibility of the DPUKs and DGH.The closing date of the loan will be December 31, 1991.

J. Accounts and Audits

3.33 The PMU will have overall responsibility for establishing andmonitoring the use of a uniform project accounting system. FinanLial recordsand accounts by subprojects will be retained by the DPUK project units basedon copies of financial and supporting documents obtained from project managersand relevant agencies concerned with project funding, payment and reimburse-ment. The PMU will maintain accounts for equipment procured on behalf of theproject and for training and technical assistance. The DPUKs will transmit tothe PMU on at least a quarterly basis up-to-date project account records. ThePMU project comptroller will consolidate all accounts from the 78 districtsinto a single project account on a quarterly basis for monitoring purposes and

1O/ At negotiations, GOI and the Bank agreed, on an exceptional basis, toestablish a Special Account for civil works expenditure considering thatthe SKB 48 restricts the use of Special Accounts to local currency andthat all civil works expenditures are in local currency.

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annually for audit purposes. The audit statements will deal with the Inpresfunds provided for the project as well as disbursements by the Bank, and willinclude opinions on all expenditures including those made against SOEs.Furthermore, during negotiations assurances were obtained from GOI that(a) the consolidated project accounts, including documentation on SOEs, willbe audited annually in a timely fashion by independent auditors acceptable tothe Bank, and (b) the PMU will submit to the Bank certified copies of theaudited project accounts commencing December 31, 1989, and subsequently nolater than nine months after the end of each fiscal y ar.

K. Project Monitoring and Progress eporting

3.34 The PMU will monitor project expenditures and the physical progressof the project from monthly reports provided by the DPUK project units. Itwill send quarterly progress reports to the Bank not later than one monthafter the end of each quarter. These reports will include both consolidatedmonitoring information for the total project and individual reports for eachdistrict. The PMU will prepare a detailed project completion report andsubmit it to the Bank not later than six months after the loan closing date.

L. Environmental Aspects

3.35 The project is not expected to have any adverse environmentaleffects. Works are mostly improvements of roads and bridges, includingimproved side and cross drainage, widening and strengthening of shoulders andpavements, overlays on old pavements, and bituminous surfacings on gravelroads, all of which will improve conditions along the road through reducingdust and noise and the possibility of flooding. As the works will be carriedout on existing alignments, requirements for additional land are minimal.

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IV. ECONOMIC EVALUATION

A. Benefits and Beneficiaries

4.1 The Government's overall district roads programs reach the majorityof the population in the rural areas as they are based on the programs of theindividual districts which in turn are composed of road works scattered overthe district's entire road network. The principal aim of these programs is toadvance the development potential of the rural areas by improving access andlowering road transport costs. In addition, Government is pursuing regionalequity and employment objectives through the programs. The main quantifiablebenefits being derived from these programs are savings in vehicle operatingcosts (VOC) and in personal travel time. Other benefits of improved roadconditions which are less easily quantifiable are reductions in freight damageand improved access to agricultural extension services and social and medicalservices. Furthermore, improvements in road maintenance will provide betteraccess to some outlying areas where roads are at times impassable and willsave on costly reconstruction works in the future.

4.2 The direct beneficiaries of the VOC savings are the traders/truckersand transporters using both motorized and non-motorized vehicles and theprivate road users. Given that the level of road freight rates varies withroad conditions, savings in VOC of commercial vehicles normallv are passed onto producers (in the form of higher farm-gate prices) and consun.rs (in theform of lower prices for inputs and consumer goods) in the rural areas. Thesavings in VOC of private vehicles and in passenger time costs accrue directlyto the vehicle owners and individuals concerned. The other, less quantifiablebenefits are also spread widely over the rural population.

4.3 The project will enhance the benefits normally derived from theseprograms as it will not only provide financing for physical investments in the78 project districts, but also includes important institutional reforms andinstitution building measures aimed at improving the effectiveness of theresources devoted to district roads. First, the project will introduceimproved selection/planning procedures at district level based on moreaccurate information on the road network of the districts. This should resultin annual programs which correspond more closely to priority needs. Second,the project includes measures to improve the quality of construction work;this should result in longer lives of the road investments. Third, theproject will institute road maintenance on a more systematic basis, which willextend the life of the investments and reduce vehicle operating costs.Finally, at the level of the central government the institutional reformsshould bring about improved overall management of the program. Thesemeasures, through their impact on the effectiveness of the resources allocatedto district roads, will extend the benefits beyond the direct economic gainsof the physical investments financed by the project. The economic evaluationof the project, however, only considers the quantifiable benefits of thephysical investments in the project districts.

4.4 On the implementation side, the district road programs place heavyemphasis on labor-intensive techniques and these will be improved under theproject. The labor-intensive approach has the merit of generating

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considerable employment for the local population in the rural areas and theincome thus generated is locally spent. Also, the laborers employed under theprogram are drawn from the poorer sections of the population. During thethree-year implementation period, project works would generate an estimated80,000 man-years of employment. Moreover, the project would assist inimproving the skills and work methods of these laborers which is likely tohave spillover effects in other spheres of activity.

B. Annual Works Program Formulation

4.5 The economic rate of return (ERR) of the overall district roadsprogram depends critically on the composition of the annual programs in eachdistrict and the project, therefore, gives great emphasis to annual programformulation. The planning and programming approach being developed under theproject relies heavily on systematic methods of survey and analysis andcomprises a survey phase and an evaluation phase. The survey phase which eachyear focuses on a subregion of the district is designed to identify theinitial list of candidate subprojects, while the evaluation phase is aimed atformulation of the annual works program following screening of the individualsubprojects. At negotiation, agreement was reached that every year, candidatesubprojects will be identified on the basis of a survey in a subregion of eachdistrict and that the annual work program will be formulated following ascreening process of those subprojects. The economic evaluation for screeningpurposes uses a traffic related methodology (para. 4.6). The average planninglead time is about 18 months (Annex 9). Under the project, district staffwill be trained in the various phases of the planning procedures. Atnegotiations, agreement was reached that every year by December 31, togetherwith submission of the program of works for the following year, the PMU willsubmit an action plan for on the job training of district staff in planningprocedures.

C. Economic Rate of Return and Sensitivity Calculations

4.6 Under the project, annual programs are formulated by screening thelist of candidate subprojects following a standard economic evaluation basedon investment costs and road user savings accruing to all categories of roadtraffic. The evaluation procedures adopted for the first year program areappropriate and at negotiations agreement was reached that these procedureswill also be followed in subsequent years. The subprojects to be evaluatedare typically road links 5-10 km in length and the investment consists ofreconstruction or major rehabilitation. The elements entering into theeconomic analysis include savings in motorized and non-motorized vehicleoperating costs and in passenger time costs; benefits in respect of generatedtraffic; where applicable, benefits on account of diversion from non-motorizedmodes to motorized vehicles; and savings in maintenance costs "with" and'owithout" the project. The results of these evaluations provide the basis fora ranking of subprojects by district, for final program formulation and thecalculation of the overall ERR. The minimum ERR for subprojects to beincluded in the project is set at 10%. This was confirmed by GOI atnegotiations.

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4.7 The average improvement cost of all viable subprojects evaluated fora first-year program was US$22,500 equivalent per km. Technical options wereconsidered for each subproject. To estimate current traffic, classifiedcounts (6 and 12 hour counts) were conducted at a minimum of one station onall project links and covering both motorized (fve vehicle categories) andnon-motorized (seven relevant types) movements. Traffic growth was projectedin the 3-6% range. Vehicle operating costs were derived by adjusting the VOCmodel developed by DGH for national and provincial roads. Costs of non-motorized traffic were developed separately. The value of "productive" timewas estimated on the basis of a representive economic wage while the value of"private" time was based on half the estimated opportunity cost of unskilledlabor in rural areas.

4.8 Of the total of 420 subprojects studied for a first-year program,231 or 55% have an ERR of 10% or greater. The remaining projects were eitherfound not viable, having an ERR below 10% or had not been fully evaluated onthe grounds that they were found not to meet the initial selection criteria orbecause of inadequate survey data. Sensitivity calculations were performed ona sample of 50 subprojects to test the sensitivity of the ERR to changes inthe basic assumptions, i.e. in respect of construction costs, base yeartraffic and traffic growth, road condition assessment, generated traffic, non-motorized traffic and modal diversion, time values, maintenance cost savings,project life or implementation performance. The outcome of the ERR andsensitivity analyses permitted the ranking of subprojects for each districtand then classification according to degree of risk. The overall ERR of thesubprojects screened for a first-year program and having an ERR of 10% orgreater was 29%.

D. Special Evaluation Procedures

4.9 Some subprojects, such as those involving significant developmentbenefits, substantial traffic diversion or forming part of former trans-migration schemes, may not be suitable for the standard evaluation method.For such subprojects there are essentially three broad options: (i) specialstudies by the PMU; (ii) review and evaluation of the subproject by anotheragency when the issues which have hampered traffic development are much morecomplex than road access alone; and (iii) treatment of the subproject as aspecial case. These options have not been worked out in detail but GOI hasprepared a broad outline of a satisfactory approach for dealing with suchcases. GOI intends to develop not later than March 31, 1988, for review andapproval by the Bank: (i) the criteria to determine whether a subprojectqualifies for special studies by the PMU, for reference to another agency, orfor treatment as special case; and (ii) the methodology to be employed in thespecial studies. This was confirmed at negotiations. At negotiationsagreement was also reached that subprojects which fail to meet the standardcriteria will not be financed under the project unless they have beenevaluated and found viable, based on the special evaluation procedures to bede7eloped and that subprojects evaluated on this basis shall not constitute-more than 20% of the annual program in any district.

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E. Overall Economic Rate of Return

4.10 The project covers both road rehabilitation/betterment works androad maintenance. Overall, rehabilitation/betterment represents some 702 ofthe project costs and the ERR of that part of the program already evaluatsdindicates an ERR of 292 for these works. The ERR for subsequent years isexpected to be equal or higher and the overall ERR for the activities forwhich costs and benefits have been calculated is therefore estimated to exceed29%.

F. Project Risks

4.11 While the programs to be assisted in the project districts arephysically and economically feasible, there are a number of factors whichcould frustrate achievement of the project's objectives. The main risk of theproject is that implementation of the institutional reform is slower thananticipated and that the improvements in program formulation and programimplementation are delayed. This risk, however, has in part been averted byet uring that the institutional reforms are agreed and that the correspondingMinisterial Instruction and implementing guidelines are already issued. Atnegotiations an agreement was reached with GOI on an adequate Action Plan forimplementation of the reforms; implementation of the plan will be carefulymonitored (para. 3.6).

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V. AGREEMENTS REACHED AND RECOMMENDATION

5.1 During negotiations, agreements were reached with GOI:

(a) (i) on terms of reference for a study to prepare recommendations forimproved arrangements for handling roads built under agriculturaland other development schemes; and (ii) that the study would becompleted and submitted for the Bank's review no later than March31, 1989 (paras. 2.16, 3.22);

(b) on an Action Plan and timetable satisfactory to the Bank and on thereview and updating of the Plan in consultation with the Bank, byMarch 31 of 1989, 1990 and 1991 (para. 3.6);

(c) that the institutional arrangements for implementing district roadprograms, as set in the May 18, 1987, Ministerial Instruction andassociated addendum and guidelines, not be changed without theBank's concurrence (para. 3.6);

(d) on the detailed scope of the technical guidelines for theimplementation of the Ministerial Instruction of May 18, 1987, andthat the guidelines will be issued by February 29, 1988 (3.6);

(e) on the selection procedures for works to be included in the annualprograms as follows:

(i) proposed maintenance programs, satisfactory to the Bank, will besubmitted to the Bank by February 1988, December 31, 1988 andDecember 31, 1989 respectively. These programs (including bothphysical and budgetary aspects) will be based on the agreedstrategy (para. 3.9);

(ii) every year candidate subprojects shall be identified on thebasis of a survey in a subregion of each district and the annualwork program shall be formulated following a screening processof these subprojects (para. 4.5);

(iii) PMU, by December 31 of every year will submit to the Bank anaction plan for on-the-job training of district staff inplanning procedures (para. 4.5);

(iv) the economic evaluation procedure for screening purposes and theminimum ERR of 10% used in the preparation of a first yearprogram will also be followed in subsequent years (para. 4,6);

(v) PMU, by March 31, 1988, will submit to the Bank for review andapproval a proposal specifying the criteria governing thespecial evaluation procedures and the methodology to be employed(para. 4.9); and

- 36 -

(vi) subprojects which fail to meet the standard criteria under (iii)above, shall not be financed unless they have been evaluated andfound viable based on the special evaluation procedures andsubprojects on this basis shall not constitute more than 20X ofthe annual program in any district (para. 4.9).

(f) (i) that the future countrywide maintenance strategy for districtroads, including technical and performance standards, interventionlevels and funding formulas based on needs, will be designed indetail and submitted to the Bank for review before February 29,1988; (ii) on submitting for Bank review and approval by February29, 1988, December 31, 1988 and 1989, maintenance programs forproject districts for respectively 1988/89, 1989/90 and 1990/91based on the agreed strategy, including physical and budgetaryaspects; and (iii) that only the districts which have implementedsatisfactorily their 1988/89 and 1989/90 rehabilitation/improvementand maintenance programs would be eligible for the project's 1989/90and 1990/91 rehabilitation/improvement programs respectively(para. 3.10);

(g) that DGH and DGRD will before September 30, 1988: (i) review,evaluate and make recommendations for improvements in short- andlong-term training for district and provincial staff concerned withdistrict roads and, in consultation with the Bank and in accordancewith an agreed action plan, introduce improvements in MPW, DGH andMHA regular training programs for those staff; and (ii) establishand make operational certificate course programs for road and bridgeengineers; and (iii) submit an overseas training program for Bankreview and approval (para. 3.23);

(h) on restructuring and strengthening the PMU, particularly through theappointment of key staff, in order to improve its capacity to ensureeffective implementation of the project, including the institutionalreforms, and of projects financed by other aid agencies (para.3.27);

5.2 Subject to the above agreements, the project would be suitable for aBank loan of US$190.0 million equivalent to the Republic of Indonesia for 20years, including 5 years of grace, at the standard variable interest rate.

-37- ANNEX 1Page 1 of 3

INDONESIA


Project Districts and Their Road Networks(km)

Approx. lengthTotal of arterial and

length of collector roadsdistrict Sealed Gravel Earth (national/roads surface surface roads provincial)

AcehAceh Selatan 407 19 235 153 430Aceh Tenggara 479 25 200 254 200Aceh Timur 1,350 62 857 431 230Aceh Tengah 518 38 162 318 160Aceh Barat 548 2 327 219 400Aceh Besar 740 34 288 418 130Pidie 648 137 281 230 155Aceh Utara 1,154 37 226 891 180

Subtotal 5,844 354 2,576 2,914 1 85 (1,983)

Suumatera UtaraNias 297 50 30 217 257Tapanuli Selatan 547 129 326 92 516Tapanuli Tengah 220 130 41 49 185Tapanuli Utara 1,642 437 97 1,108 420Labuhan Batu 793 136 115 542 270Asahan 384 41 48 Ž95 272Simalungun 582 255 117 210 271Dairi 250 88 60 102 172Karo 907 215 312 380 245Deli Serdang 558 284 90 184 354Langkat 406 139 202 65 210

Subtotal 6,586 1,904 1,438 3,244 3,172 (3,411)

Sumatera BaratPesisir Selatan 580 25 252 303 257Solok 695 140 192 363 264Sawahlunto/Sijunjung 340 36 178 126 287Tanah Datar 472 347 65 60 130Padang Pariaman 399 203 90 106 114Agam 590 220 267 103 180Limapuluh Kota 576 163 161 252 250Pasaman 603 J14 252 237 330

Subtotal 41255, 1248 1,457 1,550 1,812 (1,865)

-38-

Page i of 3



JambiKerinci 272 116 39 117 158Sarko 553 - 484 69 313Batang Hari 398 - 211 187 434Tanjung Jabung 397 - 12 385 330Bungo Tebo 274 - 80 194 288

Subtotal 1,894 116 826 952 1,523 (1,533)

Sumatera SelatanOgau Komering Ulu 375 106 174 95 472Ogau Lomering Ilir 323 1 11 311 116Muara Enim 278 - 181 97 524Lahat 415 51 180 184 417

Subtotal 1,391 158 546 687 1,529 (1,588)

BengkuluBeUngkuilu Selatan 438 4 220 214 255Rajang Lebong 306 24 179 103 203Bengkulu Utara 530 9 261 260 453

Subtotal 1,274 37 660 577 911 (911)

Lampunglampung Selatan 522 105 368 49 311Lampung Tengah 1,231 183 600 448 611Lampung Utara 717 109 251 357 517

Subtotal 2,470 397 1,219 854 1,439 (1,740)

Jawa BaratPandeglang 354 137 123 94 110Lebak 311 49 173 89 125Bogor 794 460 262 72 160Sukabumi 568 324 213 31 275Cianjur 421 341 26 54 203Bandung 497 275 222 - 245Garut 511 376 119 16 190Tasikmalaya 628 407 185 36 176Ciamis 528 259 211 58 145Kuningan 360 82 67 24 80Cirebon 206 157 39 10 140Majalenka 164 154 5 5 97Sumedang 406 269 84 53 108Indramayu 566 310 138 118 135Subang 887 78 359 450 100Purwakarta 164 118 35 11 61Karawang 625 168 194 263 68Bekasi 466 144 178 144 60Tangerang 868 403 316 149 100Serang 667 227 234 206 129

Subtotal 9,991 4,738 3,183 2,070 2,707 (2,741)

-39- ANNEX IPage 3 of 3



Kalimantan BaratSambas 1,089 79 12 998 235Pontianak 689 - 97 592 393Sanggau 588 17 62 509 310Ketapang 865 43 - 822 481Sintang 652 - - 652 175Kapuas Hulu 854 - - 854 0

Subtotal 4,737 139 171 4,427 1,594 (1,703)

Sulawesi TengahLuwur/Banggai 1,077 - 377 700 380Poso 715 260 103 352 686Donggala 563 53 234 276 895Buol Toli Toli 413 17 26 370 332

Subtotal 2,768 330 740 1,698 2,293 (2,664)

NTTAlor 667 - - 667 0Flores Timur 507 1 - 506 76Sikka 316 13 85 218 123Ende 242 3 42 197 192Ngada 937 2 178 757 212Manggarai 1,205 11 396 798 291

Subtotal 3,874 30 701 3,143 894 (1,188)

GRAND TOTAL 45,084 9,451 13,517 22,116 19,759 (21,327)

Source: AMPHI%O/Hoff and Overgaard A/S, Preparation Document of 1987/88Program.

-40-ANNEX 2Page 1 of 13

INDONESIA


Ministerial Instruction for InstitutionalReform and Guidelines for Its Implementation

Translation of Final Version

Jakarta, 18th May, 1987

No: 056.2/923/Bangda To: 1. All Provincial Governors2. All Bupatis/Mayors

throughout Indonesia

Re: Mechanism for Providing Technical Guidanceand Administration for Kabupaten Roadworks

We wish to advise you that in order to improve management and quality ofKabupaten roadworks, steps need to be taken to re-arrange duties andresponsibilities of all agencies involved at the Kabupaten/Kotamadya(district), Provincial and National levels.

Duties and responsibilities referred to cover the fields of planning andprogramme preparation, implementation, control and supervision togetherwith technical guidance in general.

The following guidelines shall be applied in respect of all Kabupaten/-Kotamadya (district) roadworks whether funded under National Programmes,Provincial Programmes or with District funds.

1.1. BAPPEDA IIs assisted by the Kabupaten Public Works Agencies (DPUKs)and the District Secretariates/Development Sections and otherinvolved agencies shall prepare annual programmes for upgrading,rehabilitation a&. maintenance and new construction of districtroads in accordance with general guidelines issued by theDirectorate General of Regional Development (DGRD) of the Ministryof Home Affairs (MIA) and technical guidelines issued by theDirectorate General of Highways (DGH) of the Ministry of PublicWorks (MPW).

1.2. The Bupati/Mayor shall submit the roadwork programme proposalsprepared as under para. 1.1 above to the Governor for approval.

1.3. Programme proposals approved by the Governor shall be submitted to:

1.3.1. The Chairman of BAPPENAS (Deputies I and V for Economic andRegional Affairs, respectively), to the Director General ofBudgets of MOF, to the Director General of Highways of MPWand to the Director Ger3ral of Regional Development of MHA,for use in district road programme preparation at nationallevel and for programme monitoring.


1.3.2. After review at national level, the annual programme shallbe sent to the Bupati/Mayor for preparation of furtherplanning and design.

1.4. The DPUKs on behalf of the Bupatis shall prepare necessary designsof the respective projects as approved by the Governor, beginningwith surveys and field investigations through to the preparation ofdesigns ani preparation of budgets (DURP or DIPDA II) for therespective programme.

In carrying out design work, the DPUKs shall stay within the budgetceilings determined for the respective financial year, and shallfollow the technical guidelines issued by DGH.

1.5. The budget documents prepared as under para. 1.4. together withattachments ea.d supporting documents shall be resubmitted by theBupati/Mayor to the Governor for his approval, which shall be givenfollowing review by BAPPEDA I, OPUP and the Development Bureau ofthe Provincial Secretariate in line with their respective functionsand roles.

2. Implementation

2.1 The Bupati/Mayor shall be generally responsible for implementationof programmes and projects, assisted by:

2.1.1 The DPUK, twho shall be responsible for construction andsupervision of the district road programme;

2.1.2. The Development Section of the District Secretariate, whoshall be responsible for the operational control ofprojects including the preparation of reports;

2.1.3. BAPPEDA II, who shall be responsible for overall control ofplanning.

2.2 The Bupati/Mayor as the responsible party for programme implemen-tation shall appoint qualified DPUK technical staff, includingtechnical staff of the DPUP or DGH seconded to the DPUK's asProject Managers. Project Managers shall be responsible for theimplementation of roadworks, whether carried out by force accountor contract.

2.3. In carrying out his duties, the Project Manager shall be assistedby a Supervision Team consisting of technical staff of the DPUKstrengthened if considered necessary by technical staff of the DPUPor consultant supervisors appointed for this purpose.

The Project Manager assisted by the Supervision Team is responsiblefor quality control and quantity measurements of works which, inthe case of contracted works, form the basis of progress paymentsto co&tractors.


2.4. When works are to be carried out by contract, the Project Managersshall be responsible for the preparation of tender documents,prequalification of contractors and the tendering process, withinthe limits of authority vested in them under prevailingregulations.

2.5. In the case of projects financed partly with foreign aid,consultant supervisors appointed with the approval of the donorshall ensure that the quality of work being certified for paymentis in accordance with the specifications and the quantities inaccordance with field measurements. To reflect this assurance, theconsultants shall countersign the certificate of works progress tobe used as the basis for payment.

2.6. The DPUK shall be responsible for the daily operation and main-tenance of equipment for force account works, and for allocatingfunds for these purposes. The DPUP shall assist the DPUK to carryout major repair and overhaul of DPUK equipment.

3. Technical Guidance

3.1. The Directorate General of Highways shall exercise technicalguidance ove- the DPUP (Highways Division), and the DPUP on behalfof the Central Government shall exercise technical guidance overthe DPUKs for planning, programming, design, implementation,supervision and control of roadworks, including maintenance, ofdistrict roads.

3.2. The Directorate General of Highways shall upgrade the capabilitiesof DPUK staff through technical advice on the physicalimplementation of roadwork projects, and by carrying outcomprehensive training programmes.

3.3. In order to meet the requirements for qualified personnel in theDPUKs, staff of the Directorate General of Highways or of the DPUPmay be transferred or seconded to the DPUKs, in accordance with therelevant regulations.

4. Programme Management at National Level

In Accordance with Presidential Instruction No. 6 of 1984 concerning "TheProvision of Development Assistance to Provinces, Districts andVillages", in particular concerning the Inpres Jalan programme,management duties for national level agencies have been outlined asfollows:

4.1. The Director General of Regional Development of MHA shall beresponsible for management of the administration of implementation.

4.2. The Director General of Highways of MPW shall be responsible formanagement of technical aspects of road and bridge works.

-43-.ANNEX 2Page 4 of 13

4.3. The Minister of State for Development Planning/Chairman of BAPPENASshall be responsible for general planning of development assistanceto ensure consistency with other development programmes.

4,4 The Director General of Budgets of the Ministry of Finance (MOF)shall be responsible for supply and channelling of funds for theprogramme.

For coordination and consistency of action in managing the programme atCentral level, a Steering Committee shall be formed, with the followingmembership:

- the Director General of Regional Development of MHA.- the Director General of Government and Regional Autonomy of MHA;- the Deputy Chairman of BAPPENAS for Economic Affairs;- the Deputy Chairman of BAPPENAS for Regional Affairs;- the Director General of Budgets of MOF;- the Director General of Highways of MPW.

Decisions taken at meetings of the Steering Committee shall become thebasis of guidance for the agencies involved in the district roadsprogramme, in line with the respective roles and authorities of eachagency.

5. Programme Management at Provincial Level

The Governor shall be responsible for management of programmeimplementation in his Province, and shall be assisted by:

- BAPPEDA I;- The Development Bureau in the Provincial Secretariate;- The Provincial Public Works Agency; and other involved agencies.

6. Formation of Joint Secretariate (ProjectManagement Unit - PMU) at Central Level

To assist the Director General of Regional Development of MHA in handlinggeneral administration of the programme and in particular theadministration of district roads funded in part by Lending Agencies(IBRD, AND, OECF, etc), a joint secretariate or Project Management Unit(PMU) may be established at Central Level as a temporary measure. Itshall consist of staff of the Agencies involved in the programme atCentral Level.

ANNEX 2Page 5 of 13

We ask for your attention to these matters in order to improve themanagement of district roadwork programmes, both from the Central Govern-ment to the Provincial Governments, and thence from the ProvincialCovernments to the District Governments.

MINISTER OF HOME AFFAIRS,

(signed) SOEPARDJO

cc: 1. Deputy Chairman of BAPPENAS for Economic Affairs2. Deputy Chairman of BAPPENAS3. Director General of Budgets, Ministry of Finance4. Director General of Highways, Ministry of Public Works5. Secretary General, Ministry of Home Affairs


Jakarta, 25th May, 1987

No. 620/958/Bangda To: 1. All Provincial Governorsthroughout Indonesia

2. All Bupatis/Mayorsthroughout Indonesia

Re: Guidelines for Implementation of Kabupaten Roadworks

Following the Minister of Home Affairs' Instruction No. 056.2/923/Bangdadated 18th May, 1987, concerning the Mechanism for Providing TechnicalGuidance and Administration for Kabupaten Roadworks, we request yourattention and assistance in preparing and carrying out the programme ofKabupaten roadworks in your area.

1. Planning and Programme Preparation

1.1. Technical Guidelines

Technical guidelines relating to planning, programming andimplementation of district roadworks shall be issued by theDirectorate General of Highways.

1.2. Survey of Road Network

District Works Agencies (DPUKs) shall be responsible for carryingout surveys on district roads, and shall be assisted by Bappeda IIin particular for socio-economic surveys. Provincial WorksAgencies (DPUPs) shall provide support and advice for such surveys.

1.3. Link Selection and Evaluation

Folliwing procedures as outlined under para. 1.1, the DPUK shallselect links from the surveyed areas which satisfy the criteria forupgrading and rehabilitation proposals. Evaluation of links forupgrading shall follow procedures determined as under para. 1.1,and shall be carried out with the assistance of the DPUP.

1.4. Preparation of Draft Works Programme

Based on the evaluation as under para. 1.3, the DPUK shall assemblea programme of district road upgrading/rehabilitation and aprogramme of district road maintenance.

1.5. Approval of Programme Proposals

1.5.1 The programme proposals prepared as under para. 1.4 shall bereviewed at kabupaten level by:


The Chairman of BAPPEDA II shall review the programmeproposals in accordance with guidelines determined as underpara. 1.1.

The Head of the Development Section in the KabupatenSecretariat shall ensure the administracive completeness ofthe programme proposals.

1.5.2. Programme proposals shall be sent by the Bupati to the Governorfor approval. Before approval by the Governor, proposals shall bereviewed by:

- The DPUP, for conformity with technical standards asdetermined under para. 1.1, and in relation to the overallroad programme within the province; and by

- BAPPEDA I, for macro-planning and coordination with otherprojects within the province.

1.5.3 Draft programme summaries from para. 1.5.2 shall be used byBappeda I in preparing information for the National Consultationof Bappeda I officials.

1.6. Approval of Final Proposal

After budget allocations for each District have been announced,the Head of the Development Section in the Kabupaten Secretariateshall assemble final programme details for their District with theassistance of the DPUP.

1.7. Engineering Design and Document Preparation

The DPUK shall carry out engineering surveys and design on linksas determined under para. 1.6. Data from the engineering analysisshall be entered into the budget documents (DURP/DIPDA) whichshall be submitted by the Bupati/Mayor to the Governor forapproval. In giving his approval, the Governor shall be assistedby the DPUP.

2. Tendering of Civil Works

2.1 Preparation of Tender Documents

Standard tender documents shall be drafted and issued by theDirectorate General of Highways, and shall be used by the DPUK asthe basis of preparation of final tender documents.

2.2. Prequalification of Contractors


The DPUK assisted by the DPUP should examine carefully the generallist of prequalified contractors (DRM) so that only contractorswho have genuine financial strength and technical ability shouldbe invited to submit tendprs.

2.3. Tender Process and Evaluation of Bids

A Tender Committee shall be established by the Bupati/Mayorconsisting of staff of the DPUK, staff of the Development Sectionand Finance Section of the Kabupaten Secretariate and otherinvolved Technical Agencies, assisted by staff of the DPUP.

The Tender Committee shall invite contractors to submit tendersfor works using tender documents referred to under para. 2.1, inline with tender procedures contained in Presidential Decree No.29 of 1984.

After evaluating the bids, the Tender Committee shall makerecommendations to the Project Manager on proposed award ofcontract, and the contract award procedure shall be in accordancewith Presidential Decree No. 29 of 1984 and the Minister of HomeAffairs' Instruction No. 36 of 1984.

2.4. Award and Contract Signature

The award of contracts shall be in accordance with PresidentialDecree No. 29 of 1984. Contracts shall be signed by the ProjectManager and approved by the Bupati/Mayor. A report on contractawards for all projects shall be prepared by the DPUK and sent bythe Bupati/Mayor to the Governor who should then report to theDirector General of Regional Development.

3. Implementation

3.1. General

In order to upgrade the capabilities of DPUK, the DPUP should givetechnical guidance in relation to implementation and supervisionof the kabupaten roadworks programme. Such technical guidance maybe in the form of written guidelines or provision of DPUP staff tothe DPUK. In providing guidance in the form of provision ofstaff, the DPUPs shall always consult with the Bupati/Mayor andreport the results to the Governor.

3.2. Implementation of Work

3.2.1 In line with the Minister of Home Affairs' Letter No. 056.2/923-/Bangda of 18th May, 1987, the Bupati/Mayor shall appcint anddismiss as Project Managers, technical staff of the DPUK,including technical staff of DGH or the DPUP seconded to the DPUK;for both contract and force account projects. The Project Managershall be responsible for physical implementation of the

-48- ANNEX 2

Page 9 of 13

projects. Appointment and dismissal of the Project Managers shallbe done after obtaining the advice or recommendation of the Headof the DPUK as the Project Managers' direct superior.

3.2.2 For projects carried out on a contract basis, the Bupati/Mayorshall appoint a Supervisory Team to assist the Project Manager.The Supervisory Team shall consist of technical staff of the DPUKand the DPUP, or consultant staff appointed for the purpose.

3.2.3 For projects carried out on a force account basis, the ProjectManager shall carry out his duties assisted by staff of the Roadsand Bridges Sections of the DPUK/DPUP.

3.3 Control of Supervision of Works

Control and supervision shall include the following duties:

3.3.1 Preparing a schedule for field supervision of all projects.

3.3.2 Implementation of supervision, paying particular attention to thefollowing matters:

- Continuous checking and reporting of work quality (includingtaking photos before, during and after completion of work).The quality of works must be in accordance with specificationscontained in the contract or project documents.

- Preparing recommer.dations and reports on action to be taken incase of divergence from contract documents.

- Carrying out complete checks of work quality and measurementof volume before preparation of Work Certificates for eachinstallment of contract payment to the contractor/executor.

- Preparation of progress reports on each project, preparationof summary reports from the Bupati/Mayor to the Governor, anddocumentation of completed works.

3.3.3 Supervision of day-to-day work should be noted in a daily diary,including the volume of work completed, the number of workersemployed, the amount of equipment and its condition, the weatherand other events considered necessary to record.

3.4. Certification of Works

Works Certificates shall be prepared by the Supervisory Teamreferred to under para. 3.2. Only works carried out in accordancewith the technical specifications shall be certified forpayment. For projects funded in part with foreign aid, the DPUP,or on the DPUP's behalf consultants acting by written authority ofthe Governor, shall countersign Works Certificates to reflectassurance of satisfactory quality.

-49-ANE2 AJIEK 2

Page 10 of 13

3.5. Payment and Accounting

3.5.1. Progress payment documents for both contract and force accountworks shall be prepared by the Project Manager, and shall besubmitted to the Development Section in the Kabupaten Secretariatethrough the DPUK for review and approval.

3.5.2. Physical and financial progress reports shall be prepared by theProject Manager and shall be forwarded to the Bupati/Mayor throughthe DPUK for kabupaten level monitoring. The Bupati/Mayor shallsubmit progress reports to the Governor for provincial levelmonitoring. The Governor shall then send summary reports to theDirectorate General of Regional Development for national levelmonitoring.

3.6 Equipment Allocation

3.6.1. The Directorate General of Highways assisted by the DirectorateGeneral of Regional Development shall determine the quantity andtype of equipment to be allocated to each Province for use onkabupaten roadworks.

3.6.2. The DPUP assisted by the Development Bureau in the ProvincialSecretariate shall determine the quantity and type of equipment tobe allocated to each kabupaten based on equipment utilizationplans which shall be prepared by the Project Manager andauthorized by the Head of the DPUK. The DPUP shall monitor theutilization of all equipment. Periodic reports on such monitoringshall be submitted to the Governor.

3.7. Equipment Repair

3.7.1. The DPUK shall be responsible for the operation, servicing andminor repair of all equipment, both that owned by the kabupatenand that owned by the Directorate General of Highways and loanedto the kabupaten. The DPUK shall be responsible for setting asidefunds for the utilization and maintenance of equipment duringproject implementation.

3.7.2. The DPUP shall be responsible for major repair of all kabupatenequipment. The local Regional Depots of the Directorate Generalof Highways shall assist the workshop staff of the kabupaten andthe DPUP, and shall be responsible for monitoring of all equipmentrepair.

3.8. Procurement of Materials

The DPUK shall prepare materials needs lists based on the comingyear's works programmes. Such lists shall be submitted by theBupati/Mayor to the DPUP on behalf of the Governor for review andrecording as necessary.

-50- ANNEX 2

Page 11 of 13

4e Other Matters

4.1. Training of Staff

4.1.1. The Ditectorate General of Highways has the duty of upgrading thecapability of DPUK staff by carrying out comprehensive trainingprogrammes at the national, provincial and district levels.

4.1.2. The DPUK shall assemble lists of zandidates for all types oftraining, with the assistance anw advice of the DPUP and of theDevelopment Bureau in the Provincial Secretariate.

4.1.3. To fulfill the need for qualified personnel in the DPUKs, it ispossible that staff of the Directorate General of Highways or ofthe DPUP may be transferred or seconded to the DPUKs.

5. Coordination at National and Provincial Levels

A Steering Committee has been formed to facilitate coordination andprogramme control, and to give guidance and direction to each agencyinvolved in district road development, with membership consisting of theDeputy Chairmen for Economic Affairs and Regional Affairs of BAPPENAS,the Director General of Regional Development, the Director General ofGovernment and Regional Autonomy, the Director General of Budgets and theDirector General of Highways.

To assist the Director General of Regional Development particularly inadministering district road programmes funded in part with foreign aid, aProject Management Unit (PMU) may be formed, consisting of staff of theDirectorate General of Regional Development, BAPPENAS and the DirectorateGeneral of Highways, with duties as follows:

- Preparing guidelines and procedures for use in the foreign-assisted district road programme and handling theiradministration;

- Preparing materials for technical guidelines for implementationand supervision;

- Assisting in preparation of programmes for procurement ofequipment and materials, starting from planning, procurement,distribution up to full functioning of equipment (includingworkshop and laboratory equipment).-

- Monitoring of the progress of programmes and monitoring of thequality of upgrading and maintenance works.

- Preparing programmes for training of project personnel.

- Acting as counterpart for project consultants.

-51- ANNEX 2

Page 12 of 13

We ask for your attention to these matters so that the above guidelinesmay be implemented as well as possible.

On behalf of the Minister of Home Affairs

DIRECTOR GENERAL OF REGIONAL DEVELOPMENT

(Signed) Ir. PIEK MULYADI

1. Minister of Home Affairs2. Secretary-General of Ministry of Home Affairs3. Director General of Government and Regional Autonomy, (PUOD),

Ministry of Home Affairs4. Director General of Highways, Ministry of Public Works5. Deputy Chairman of Bappenas for Economic Affairs6. Deputy Chairman of Bappenas for Regional Affairs7. Director General of Budgets, Ministry of Finance8. Heads of all Provincial Works Agencies (DPUP) in Indonesia9. Heads of all Kabupaten Works Agencies (DPUK) in Indonesia


Translation of Telex from Minister of Home Affairs to all Governors

27th July, 1987

AAA. Further to instruction of Minister of Home Affairs dated 25 May, 1987No. 620/958/Bangda and with reference to guidelines for implementation ofarrangements for management of rural roads program, we herewith informyou that for Inpres Jalan Works funded by the coming IBRD funded SecondRural Roads Project, the Provincial Public Works agency (DPUP) must berepresented on the tender committee in the respective districts.

BBB. Please inform the respective Bupatis.

Minister of Home Affairs.

-53-ANNEX 3

INDONESIA - SECOND RURAL ROADS DEVELOPMENT PROJECT

Action Plan for the Impltwntation of Institutional lnprovement for DOstriet Rodds.....................................................................................................................

Actions to be taken I Reonyible 11987 1988 1989 1990 191........... i.......................................................................................................

1. INITIING ACTIONS

Oraft Ninisterial Instruction from NHA to all Governors and lupatis DGRD mm

Oraft Ilepmentation Guidelines from the Director General of DCRD DCRO NM

Prepare Draft Natrix of Present Transition and Final Roles DGRD N

lssue of Ninisterial !nstruction on institutional inprovement after DGRD Nagreaemnt with SC.

2. IDENTIFICAtION OF PRESNT ROLES

Identification of present roles & relationships at District lewl CDM/PUOD P 1N

Identification of present roles 8 relationships a Provincial level OGRD/PVOD P N

Identification of present roles & relationships at Central level DGRD/DGN/BAPP N N

3. IDENTIFICATION OF PRESENT STAFFING

Inventory and database of present staff at District level DGRDJPUOD P NON

Inventry and databse of present staff at Provincial level DGRD/PUOD P No

Inventory and database of present staff at Central level DRD/DCJ/BPP N

4. PREPARlATIOC OF DETAILFO TRANSITION PLANS

Identify need and prepare plan for establishing new OPUKs OGRD/PUKO PPMN N

Prepare plan for establishing Rurel Road Sections in DPUPs DGRO/DGH/PUOD NNNN'NN

Cost estimtes for project organizations and supervisory tean DRD/DOGN P jU

Identity need and prepare plan for establishing other new units DGRD/PUOD/DGM NNNN N

S. DEFINITION OF ROLES OF EACH AGENCY - - |-

Prepare job descriptions for all Provincial and District agencies OGRD/PUOD P PPWN N

SC's agreement on policy on al:ocation of tasks DCRO PNN N

identify nmbers and types ot staff required over next five years DGRD/PUOD/DGM PpNN a

6. IDENTIFICATION OF RESOURCE REQUIREMENTS _ _ -_

Match staff requirements with staff availability DGRD/PUOD/DGH PNN N

Identify needs and possibilities for transfers DGRD/PUOD/DGH PUN N

Identify recruitment needs for each organizational unit DGRD/OGH PNN N

Estimate additional costs over and above present budgets DGRD U N

7. STAFF REALLOCATtON AND RECRUITMENT -

Ninisters*/Director Generals' instructions on recruitment and budgets DGRD/DGH NNW N

Each agency inpleents transfers, recruitment, etc DMRD/Governor UN NUWN N

lepletent new organizations at District level eu¶ati Nm NUNN N

8. TRAINING

Identify training requirements for all units OGRO/OGH PP mN

Prepare curricula, training schedule and allocate training facflities DGRD/DGH NUNX UN

Training agencies implement formal training of staff and recruits DGRO/OGH UN UNU N UNN U

9. NONITORING OF INSTITUTIONAL IMPROVEMENT

Set up maagement criteria for identifying progress PHU UN UN

Set up regular reporting on staffing at each agency P1U UN UN

Analyze and evaluate reports and advise SC P1W Km NNN UNU NU

SC's agreement on action as required DOGRD MU NOUN UNN N

10. ACTION PLAN REVIEW -IIMnnitoring by PHU and reporting to SC PNU N"uN mUNU NNWN N

Review by DGRD and SC agreement on revision of Action Plan DGD NNW" UNU NNNN N

Review by World Bank for monitoring of Institutional lerpovement Wortd Bank N a u | |N

Key: SC * Steering Committee; P = Six Pilot Districts; N a Nationwide


INDONESIA


Scope of Technical Guidelinesfor

Planning and Executien ofRehabilitation/Improvement and Maintenance Programs

1. Planning and Program Preparation

1.1. Planning Surveys

1.1.1. Determination of Planning Areas1.1.2. Link Identification and Mapping1.1.3. Road Condition and Photographic Surveys1.1.4. Traffic Counts and Speed Surveys1.1.5. Population and Other Surveys1.1.6. Specific Maintenance Planning Surveys

1.2. Analysis and Screening

1.2.1. Network Mapping and Analysis1.2.2. Traffic Analysis1.2.3. Population Analysis1.2.4. Analysis of Unreliable Roads1.2.5. Generaliazed Cost Estimation1.2.6. Benefit Analysis1.2.7. Special Evaluation Procedures1.2.8. Screening, Ranking and Program Preparation1.2.9. Maintenance Program Preparation

2. Design and Budget Estimates

2.1 Engineering Surveys

2.1.1. Geometric Surveys2.1.2. Soil Investigations2.1.3. Materials Investigations2.1.4. Hydraulic Investigations2.1.5. Bridge Foundation Investigations2.1.6. Special Investigations (Soft Soils, etc.)

2.2 Design Standards

2.2.1. Geometric Design2.2.2. Pavement Design2.2.3. Drainage Design2.2.4. Appurtenance Design2.2.5. Bridge Design


2.2.6. Design Drawings

2.3. Specifications

2.3.1. Roadworks2.3.2. Bridgeworks2.3.3. Maintenance

2.4. Detailed Cost Estimation and Budgetting

2.4.1. Surveys of Unit Prices of Labor and Materials2.4.2. Determination of Equipment Unit Prices2.4.3. Construction Work Method Assumptions2.4.4. Maintenance Work Method Assumptions2.4.5. Preparation of Budget Cost Estimates

3. Preparations for Implementation by Contract

3.1. Prequalification of Contractors

3.2. Tender Activities

3.2.1. Tender Documents3.2.2. Tender Procedures3.2.3. Evaluation of Bids3.2.4. Award of Contracts

4. Implementation and Supervision

4.1. Force Account Procedures

4.1.1. Establishment of Work Site and Facilities4.1.2. Employment of Labor4.1.3. Purchase of Materials4.1.4. Operation of Equipment4.1.5. Servicing and Repair of Equipment4.1.6. Workshop Operations and Management4.1.7. Stores and Stock Control4.1.8. Bookkeeping and Cost Accounting

4.2. Contract Procedures

4.2.1. Possession of Site4.2.2. Traffic Control4.2.3. Quarries and Materials4.2.4. Lease of Equipment4.2.5. Facilities for Quality Control and Supervision4.2.6. Site Clearance on Completion4.2.7. Maintenance of Completed Works

-56- AEX 4

Pi %e 3 of 3

4.3 Supervision and Quality Control

4.3.1. Contracted Works4.3.2. Force Account Construction Works4.3.3. Maintenance Works4.3.4. Certification of Works for Payment

4.4. Documentation and Reporting

4.4.1. Contracted Works4.4.2. Force Account Construction Works4.4.3. Maintenance Works


INDONESIA

SEC.OND RURAL ROADS DEVELOPMENT PROJECT

The Maintenance Program for Project Districts and a FirstProposal for a Maintenance Strategy for District Roads

A. Sumar

1. The main conclusions of the work on d.strict roads maintenancethrough August 1987 can be summarized as follows:

(a) The maintenance program should attempt to provide for 100% of theneeds for maintenance of roads in good and fair condition in theproject districts. In the first two years of the program, it isassumed that echievement of this will be limited by districtcapacity, due to the persistence of the concept of applying main-tenance funds to low quality repair of roads in bad condition. Theprogram estimate presented in Section B assumes progressive intro-duction of maintenance of all good and fair roads.

(b) Three types of maintenance work are proposed for district roads, asfollows:

gi) initial improvement of drainage systems on roads in good andfair surface condition, both sealed and gravel. This isrequired since most existing roads have been built withoutformal design, are poorly drained, and the impact of othermaintenance works (and the residual life) would increase signi-ficantly by first improving the drainage systems;

(ii) road maintenance of newly upgraded roads and, after drainagei_provement, of other roads in good and fair condition; and

(iii) periodic maintenance, including overlays of sealed roads andregravelling of unsealed roads, carried out on roads in faircondition where drainage improvement has been completed.

(c) Routine maintenance is defined to consist of different activitiesfrom periodic maintenance and from drainage improvement (Attachment1), in order to keep the programs clear and consistent and toemphasize that routine works are required on all good and fairlinks. Links budgeted for drainage improvement should also bebudgeted for routine maintenance in the same year. Routine main-tenance on links budgeted for periodic maintenance should begin inthe following year.

(d) At least for the first year and probably for the 3 years of theprogram, the present COI maintenance funding criterion (25% of thepopulation-based Inpres Kabupaten program) should be retained due toits simplicity, the greater importance of achieving physical objec-tives over budget refinement, and the reasonable proportion of over-all needs for which it in theory provides at present.

-58- ANN-X 5

Page 2 of 3

(e) The greatest disadvantage of the present criterion, namely its lackof relation to the size of maintenance needs in some districts,should be addressed directly by the project financing an agreed pro-portion of overall needs, with individual funding per district to bedistributed according to individual needs.

(f) Any revisions to the above proposed budgeting strategy should not beallowed to divert attention from the main thrust of the strategy,that is to allow most effort to be concentrated on implementation ofmaintenance in the districts, and on training ot district workforces in maintenance routines and work methods.

(g) To implement the proposed strategy, a commitment is required fromthe Government to:

(i) budget for the proposed project component of maintenance underInpres Kabupaten beginning in 1988/89 with the program outlinedin Section B;

(ii) issue policy guidelines from Home Affairs Department supportedby technical guidelines from Public Works t'epartment regardingallocation of the major part of maintenance funds to the worksoutlined in para (b) above on roads in good and fair conditiononly;

(iii) immediately procurs appropriate maintenance equipment asrequired for the 78 kabupatens; and

(iv) establish gangs of routine and periodic maintenance workers ineach district.

2. Other important aspects of the maintenance strategy are as follows:

(a) All repair and rehabilitation works on poor and bad condition roads(except for emergency works as described under para. 2 (b) below)should be excluded from maintenance, as should any works costingover as threshold amount per km (to be determined each year andagreed with the Bank), which should be subject to evaluation as forother improvement works. The purpose of this bias towards good andfair roads is to overcome present widespread neglect of routinemaintenance of such roads and the consequent rapid deterioration ofassets.

(b) There should be an emergency maintenance provision in each districtmaintenance budget, based on an appropriate formula yet to bedeveloped, to be allocated for works such as clearing landslips,repairing collapsed bridges and improvement of bad spots to keeproads open to traffic, subject to the limit in 2 (a). A contingencyof 10% has been included in estimated routine and periodic main-tenance and drainage improvement costs to allow for emergency worksuntil an appropriate formula is derived. (It is noted, however,that such a formula should probably relate to the length of roads inpoor and bad condition.)

ANNEX 5Page 3 of 3

(c) Routine and periodic maintenance and drainage improvement worksshould be planned and budgeted link-by-link, using a schedule ofquantities and rates, on which monitoring and loan reimbursementshould be based. However, emergency works saould be budgeted bydistrict, under the category of landslip removal, temporary bridge-works and repair of flood damage. Terms such as "emergency works"or "contingencies" should not be allowed in the district budgets, asthey would indicate excessive flexibility.

(d) In line with this, it is proposed that separate teams of workersshould carry out routine and periodic maintenance and drainageimprovements, with separate equipment units, separate reporting andmonitoring and separate budget categories (within the one program,Inpres Kabupaten). As noted under section 1 (d) above, administra-tive simplicity requires that as much uniformity as possible be pre-served between procedures relating to these budget categories.

(e) Planning of periodic maintenance and drainage improvement worksshould be closely coordinated with planning of rehabilitation/improvement works for the following year, to avoid overlap.

(f) Maintenance planning surveys should be oriented to identifying roaddeficiencies, for which special inventory forms should be used. Formonitoring purposes, maintenance planr.ing surveys should alsoinclude adequate identification of link and location.

(g) Roads should enter the routine maintenance program in the yearfollowing completion of construction, which would require a changein current policy requiring a waiting period of two years.

(h) The maintenance guarantee period required under constructioncontracts should be lengthened from one month to three monthsfollowing the inspection at which 100% completion is certified, andshould be subject to 10% retention rather than the 5% as at present.

(i) The above maintenance strategy should be reviewed annually beforepreparation of the following year's maintenance works programs.

B. Proposed Maintenance Program

3. Attachment 2 shows how the three year program has been estimated.Unit costs of drainage improvement, periodic and routine maintenance have beenkept separate. Estimated unit costs of periodic maintenance overlays allowfor the alternatives of penetration macadam or cold mix asphalt surfaceregulation. The estimated time cycle for periodic maintenance is 4 years.

4. Attachment 2 also includes the estimated lengths of rehabilitation/improvement works to be carried out on the various road condition cate-gories.

ANNEX 5

-60- Attachment I

INDONESIA


Maintenance Works

Maintenance CategoryDrainage

Road element Activity Routine improv. Periodic Carried out by

Pavement of Pothole repair x Roadman/gangunsealed Depression repair x Gangroads Regrading x Gang/grader

Regraveling x Gang

Pavement of Pothole repair x Roadman/gangsealed roads Depression repair x Gang

Surface treatment x GangResurfacing/leveling /a x Gang

Drainage Clean drains/culverts x Roadman/gangCulvert repair x GangDitch repair x Gang

Roadside Vegetation control x GangGrass cutting x Roadman/gangGrade shoulders x GangRemove debris x x Roadman/gang

Bridges Clean channels x Roadman/gangClean bridge deck x Roadman/gangRepair minor damage x GangPaint steel bridges x Gang

Miscellaneous Traffic signs x Roadman/gangPublic installations x Roadman/gang

Sundries New ditches x GangNew culverts x GangBridge repairs x GangRepairs to miscellaneous x Gangstructures

/a Resurfacing/leveling of sealed road surfaces to be carried out using coldmixasphalt or penetration macadam.

ANNEX 5Attachment 2

INDONESIA


Outline of Rehabilitation/Improvement and Maintenance Program

Road 1988/89 Works (km) 1989/90 Works (km) 1990/91 Works (km)condition Rehab/ Rout. D'rain Overlay Rehab/ Rout. Drain Overlay Rehab/ Rout. Drain Overlaycategory improv maint improv regrav improv maint improv regrav improv maint improv regrav

Good seal:New 1,500 2,725Existing 1,000 500 1,400 500 s"0 1,760 500

fair seal: 500 1,000 1,000 500 300 1,400 1,400 500 300 1,500 1,500 500Sad seal: 500 700 700 2,740 2,740

Total Seal 1.000 2,000 1.500 500 1,000 4,300 1.900 1,000 1,000 8.725 4,240 1,000

Good gravel:New 500 1,175Rxisting 500 500 950 0 500 1,355 500

Fair gravel 500 1,000 1,000 500 300 1,500 1,500 500 200 1,500 1,500 500Bad gravel 300 400 1,000 1,000 300 4,214 4,214

Total gravel 800 1,500 1,500 500 700 3,950 2,500 1,000 500 3.244 5,714 1.000

Total earth 200 300 500

TOTAL 2,000 3.500 3,000 1.000 2,000 8.250 4,400 2.000 2,000 16,969 9.954 2,000

Maintenance Cost Estimates

Routine Drain. Overlay Routine Drain. Overlay Routine Drain. OverlayBasic Costs maint- improve & maint- improve & maint- improve &

(Rpm/km) enance ment regrav. enance sent regrav. enance cent regrav.

(June Sealed 0.435 2.00 10.755 0.435 2.00 10.755 0.435 2.00 10.7551987)

Unsealed 0.945 2.00 3.860 0.945 1.50 3.860 0.945 1.50 3.860

Total Costs (Rp m) 2.288 6,000 7,308 5,603 7,550 14,615 11.586 17,051 14.615

(usS m) 1.49 3.64 4.47 3.40 4.50 8.86 7.02 10.33 8.86

Grand Total (US$ m) $9.45 m $16.83 m $26.21 m


INDONESIA


Labor-Intensive Pilot Scheme

Background

1. Traditional labor-intensive methods are widely used in Indonesia forconstruction and maintenance of rural roads and other small-scale publicworks. Reas ns for this include the shortage of equipment and the difficultyin keeping equipment in working condition in the rural areas as well as theready supply of inexpensive labor in most parts of Indonesia. Governmentpolicy aims at maintaining the use of labor-intensive methods where suchmethods are suitable and limiting the use of capital-intensive technology toactivities for which no labor-intensive technology is available or to areaswhere manpower is very scarce.

2. The traditional methods have, however, remained basically the samefor decades since no systematic efforts have been made to improve them. Theresults are that the quality of construction and maintenance leaves much to bedesired and that labor-intensive construction is not as cost competitive withequipment as it could and should be considering the low cost of manual labor.

3. Based on experience from Bank and IIO assisted rural roads projectsin other developing countries there is considerable potential for improvementin both the quality and efficacy of the labor-intensive methods employed inIndonesia. A trial and demonstration pilot component has therefore beenincluded in the project to develop and introduce improved techniques, super-vision and organization for labor-based construction/improvement and main-tenance of kabupaten roads.

Objectives

4. The objectives of the pilot component are:

(a) the adoption and replication of techniques, supervision andorganization of kabupaten road construction and improvement bestsuited to the resource endowments of Indonesia; and

(b) the adoption and replication of techniques, management systems andbudgetary arrangements suitable for a sustained program of routinemaintenance of kabupaten roads.

5. The pilot component will be carried out over a period of 27months. (Start will depend on timing of loan effectiveness.)


Scope

6. The main features of the pilot component are:

(a) experimentation and trials with alternative labor-based constructionmethods, improved hand tools, intermediate equipment andorganization/supervision in connection with the rehabilitation/improvement of about 80 km of district roads; the work will beimplemented by force account in four districts; viz. Bogor andSubang in West Java province and Pontianak and Sambas in WestKalimantan province;

(b) trials with labor-based techniques and corresponding management andreporting systems for routine maintenance operations on about 100 kmof different types and standards of kabupaten roads in the same fourdistricts as mentioned above;

(c) provision of handtools and equipment for the experimentalconstruction/ improvement and maintenance works; these tools andequipment form an essential and integral part of the trials and thedevelopment work and full flexibility is therefore required inrespect of design and specifications, before as well as during theimplementation. The International Labor Organization (ILO), whowould be executing agency for the technical assistance, would assistthe government in the procurement of tools and equipment for thepilot component.

(d) a technical assistance team that would:

(i) plan, direct, monitor, evaluate and report on the experimentalconstruction and maintenance work;

ii) prepare detailed tools and equipment specifications and revisethem as necessary in the course of the implementation;

(iii) study the local manufacturing capability of tools and equipmentand make recommendations on how it can be increased andimproved to raise the share of locally manufactured hardware;

(iv) carry out a comprehensive study of cost, output andproductivity and quality data of different construction andrmiaintenance techniques including those currently used and thosedeveloped by the trial and demonstration program;

(v) provide on-the-job training to the concerned kabupaten staff inthe planning and implementation of labor-based work (this wouldbe in addition to the training provided under the maincomponent of the Project) and organize an overseas study touron this subject for senior staff;

(vi) prepare an action plan for the Government's consideration onhow and to what extent improved labor-based techniques and


related management systems could be suitably introduced on awider scale on force account work as well as by contractors.

Description

7. Pilot Districts. The selection of four districts for the pilotcomponent is a compromise between the desirability of having as large andrepresentative a base as possible for the trial and demonstration program andthe necessity of keeping the program small enough to be closely supervised bya team of consultants that could not be made very large. The two provinces ofWest Java and West Kalimantan were chosen because both are easily accessiblefrom Jakarta and they represent different levels of population density, roadnetwork characteristics, DPUK staff and equipment availability and insti-tutional capacity. Between them the four districts also represent differenttypes of terrain and, to some extent, soil conditions.

8. Rehabilitation/Improvement Program. The pilot component willinclude earth, gravel and sealed roads. The emphasis will be on roads in thelower range of existing or anticipated traffic volumes. Transmigration andNES roads may be included if they are under district jurisdiction.Construction of new roads may be included if the Bappeda/DPUK can demonstratetheir viability on economic or socio-economic grounds. The constructionstandards will be the same as for the main component of the Rural Roads IIproject although the design may be altered to better suit labor-basedtechniques.

9. Rehabilitation/improvement under the pilot component will startduring the 1989/90 fiscal year. A list of suitable roads will be preparedbetween March and August 1988 by each of the four districts. Maincriteria/priorities would be:

(a) assured supply of labor (order of 150-400 workers depending on thevolume of work) preferably within daily commuting distance (laborcamps will be avoided);

(b) roads with easy access to the DPUK office will be given priority tofacilitate supervision;

(c) roads where road building materials are available within relativelyshort hauling distance would be given priority;

(d) if roads are much longer than five km or otherwise contain too muchwork to complete within one construction season it should beacceptable to divide the road in segments which can be completed inone season; this criteria serves to ensure that complete data fromthe road will be timely available;

(e) for the same reason proposed roads should not involve large bridgesor other major work which would substantially delay the compilationof complete data;

-65- AMU 6Page 4 of 9

(f) about two thirds of the proposed road should be earth or gravelroads;

(g) a variety of different terrain conditions is desirable in kabupatenswhich offer that possibility.

10. The PMU or its consultants will appraise the roads proposed by thedistricts by August/September 1988. By and large the roads should meet themain criteria set for the Project. However, in view of the pilot nature ofthe component, some flexibility, e.g., in the ERR requirements, will beallowed. The technical assistance team for the pilot component would thenmake the final recommendations for approval by the Government and the Bankbefore the end of 1988.

11. The approved roads would be included in the detailed engineeringdesign work to be arranged in early 1989. PMU or its consultants wouldprepare the normally required tender documents while the technical assistanceteam would prepare the special instructions/conditions required by the pilotnature of the roads and monitor the design work.

12. The above procedure would be repeated in 1989 and 1990 for the1990/91 t ial and demonstration program. The total length of roads in thefour kabupatens would amount to about 80 km with about 40 km in each of the1989/90 and 1990/91 programs.

13. To ensure that full freedom is retained in respect of experimenta-tion with different work methods, equipment and organization of the trial anddemonstration program will be implemented through force account. Therecommendations to be prepared by the technical assistance team will, however,outline how contractors would be encouraged to use improved labor-basedmethods in the future. Moreover, contractors will be invited to participatein suitable training program in 1990/91.

14. The experimental work will encompass major road constructionactivities like earthworks, drainage, pavement and surfacing. Various sourcesof power such as manual labor, agricultural tractors and small to intermediatevehicles and self-propelled equipment will be tried. Different methods ofproducing construction materials from different types and sources of rawmaterial will be tried.

15. Maintenance Program. The pilot component will include trials withand demonstration of labor-based maintenance of gravel and sealed roads. Thetechnical assistance team will select a total of about 60 km of roads in thefour kabupatens in early 1989 for inclusion in the 1989/90 pilot maintenanceprogram. In addition to these roads the 1990/91 maintenance program willinclude also the roads completed under the previous year's pilot constructionprogram.

16. Various methods of organizing maintenance work will be tried.Possible systems include lengthman system, roving maintenance crews, village-based systems, contracted maintenance and possibly other. Different trafficvolumes and types of roads are likely to be best served by different systems

-v;6- ANNEX 6Page 5 of 9

of maintenance organization. The trials aim at establishing the appropriate-ness of different systems under different conditions, their effectiveness andcosts.

17. The trial and demonstration program will be concerned with routinemaintenance only. The roads selected for the 1989/90 program (existing roads)must therefore be in good condition at the start of the trials. The aim is toshow that they can be kept in basically the same condition through theintroduction of regular routine maintenance and that good trafficability canbe maintained throughout the period between scheduled periodic maintenance.

18. Equipment for the Trial and Demonstration Program. The tools andequipment that are expected to be tried out are listed beluw. They includeequipment of an experimental nature which are not normally used on roadconstruction sites in Indonesia (although they are regularly used onsuccessful labor-based projects in other countries) and some vehicles whichare needed throughout the pilot component by the technical assistance team tocarry out the work. Despite the experimental nature of the pilot componentsome standard types of equipment are likely to be used, e.g. trucks fortransport of material (gravel, etc.) over long haul distances. Because of theuncertainty of the extent to which such equipment will £, needed they are notincluded in the equipment procurement list. If the district concerned doesnot have such equipment available they will be rented or the work (e.g.,transport of gravel) will be contracted.

19. It is in the nature of a trial and demonstration program that allresource requirements cannot be determined in advance. Some flexibility tochange the specifications and types and numbers of equipment must beallowed. For this reason the equipment list contains a lump sum formiscellaneous equipment. That amount will be used also to buy survey andtesting equipment, training equipment, office equipment, etc. The require-ments of these minor, not construction related, equipment will be estimatedafter the arrival of the technical assistance team.

Tentative Equipment List

65-70 HP agricultural tractors50-55 HP 4 x 4 tractorsTrailers, 2.5 tonneSheepsfoot rollers (towed) 2-3 tVibratory rollers (towed) 2.5 tWater bowser (towed) 3,000 1 tScraper blade attachmentHand tillers 10 hpLight trailers 400 kgVibratory rollers (towed) 500 kgHand tools4 x 4 vehiclesUtility pick-upsMotorcycles


20. Technical Assistance. The planning and supervision of the trial anddemonstration programs and the related training activities require theservices of specially qualified senior experts with experience of efficientand productive labor-based projects. Such expertise is not available locallyand provision is therefore made for about 63 man-months of senior expatriateadvisors. In addition about 96 man-months of UN Volunteers is provided for.Two of the senior advisors will be civil engineers to be engaged for the wholeduration of the pilot component (27 months each). One will be stationed inJakarta and function as Chief Technical Adviser (Team Leader) and also super-vise directly the activities in West Java province. The other will supervisethe activities in West Kalimantan province and be stationed in Pontianak.Short-term senior expatriate advisors will be engaged for, inter alia, pre-paration of tools and equipment specifications and local manufacturing study.

21. Local consultants will be engaged for the day-to-day supervision ofthe trial and demonstration programs, for data collection in relation to thevarious studies of alternative techniques, etc., for compilation and analysisof data and to serve as instructors in the training of district staff. Localconsultant services will comprise about 140 man-months of civil engineers andabout 140 man-months of clerical/research assistance.

22. The major tasks of the technical assistance team are given in para.6.d).

23. The total base costs of the pilot component, excluding physical andprice contingencies, are tentatively estimated at about US$4.8 million. Themajor items are:

US$Civil works 2.5 millionEquipment 0.6 millionConsulting services 1.6 millionTraining and miscellaneous 0.1 million

Total Project Cost 4.8 million

Financing

24. In view of the experimental and pilot nature of this component theproposed Bank loan would be expected to cover the total cost of the pilotcomponent.

Implementation

25. A long list of road links for possible inclusion in the 1989/90pilot construction program will be prepared according to specified criteria(para. 9) by the BAPPEDA and DPUK staff in the four pilot districts betweenMarch and August 1988. The PMU or its consultants will appraise the rcads byAugust/September 1988 and the technical assistance team will make final recom-mendations on about 40 km of road links for Government and Bank approvalbefore the end of 1988 (para. 10). Arrangements for detailed engineering


design to be monitored by the technical assistance team will be made in earlX1989 (para. 11). The second year's program (about 40 km) will be prepared bya similar schedule in 1989 and 1990 (para. 12).

26. The procurement list and specifications for the tools and equipmentexpected to be used in the 1989/90 construction and maintenance pilot programswill be prepared in October/November 1988 by an equipment specialist member ofthe technical assistance team. Procurement will be done from November 1988 toJune 1989.

27. The DPUKs in the four pilot kabupatens will carry out therehabilitation/improvement of the roads through the staff of the DPUK underthe supervision of the CTA or his designated representative.

28. For the pilot routine maintenance program about 60 km of road linkswill be selected in early 1989 by the technical assistance team for approvalby the Government and the Bank and inclusion in the 1989/90 maintenancebudget. In addition to those roads, the 1990/91 maintenance program will alsoinclude the roads completed under the 1989/90 construction/ improvementprogram, i.e., about 40 km for a total of about 100 km (para. 15-17). Thisplan of action requires that the Government agrees to the allocation ofbudgets for routine maintenance of all types of roads immediately after thecompletion of construction/improvement.

29. Taking into account the Government's budget release/funds disburse-ment procedures, it is expected that experimental maintenance work will startin May 1989 and experimental construction/improvement work will start in July1989. Efforts will be made to speed up the procedures for the 1990/91programs to enable an earlier start by a few months, thereby making better useof the dry season for construction work.

30. For each rehabilitation/improvement "project" (road link) the DPUKneed to allocate, on a full-time basis, the following staff:

1 engineer3-4 foremen/technician1 surveyor1 soils/materials test technician3 administrative/clerical staff

Each kabupaten will implement two or three such "projects" during the firstyear and up to four during the second year.

31. The district of Bogor has assured the appraisal mission that it willhave the required staff available on a full-time basis. The districts ofSubang and Pontianak may need to recruit some additional staff, particularlyengineers, and the district of Sambas will have to recruit about 10 to 15additional staff members of all categories. The appraisal mission has beenassured that the recruitment of additional staff has been initiated by theMinistry of Home Affairs and the required number of staff will be available atthe start of the 1989/90 fiscal year, at the latest. It should be noted thatthe engineers and most of the foremen must have several years site experience.


32. The concerned district staff would participate in the trainingprogram that will be implemented under the main component of the Rural RoadsII project. In addition the technical assistance team will provide specialtraining in the organization and supervision of efficient labor-basedmethods. The special training will consist of several short class-roomsessions of a few days each interspersed with practical on-the-job training onsite.

33. The ILO will be appointed as Executing Agency for the entiretechnical assistance (T.A.) package. The ILO will provide the expatriateadvisors, subcontract the services of local consultants and assist thegovernment to procure local and foreign equipment.

34. The ILO will appoint one of the senior expatriace advisors as itsChief Technical Advisor (CTA) and team leader. The CTA will report to the PMUand to ILO.

35. The senior expatriate advisors including the short-term equipmentspecialist will be mobilized in October/November 1988. The local consultantsand the UNVs will be engaged by late 1988 or early 1989 and mobilized inaccordance with the need for their services. This will be determined inconnection with the preparation of the detailed workplan which will beestablished jointly by the CTA and the PMU within three months of the CTA'sarrival.

36. Technical reports, briefly describing and summarizing in figures thework done (construction, maintenance, experiments, studies, procurement,training, etc.) will be prepared quarterly. Technical working papers will beprepared after the completion of trials or studies on subjects which can betreated as separate issues. Tentative or provisional recommendations to theGovernment may be issued when the CTA deems that the results achieved warrantthem but not later than just after the completion of the first construction/maintenance season. Final draft report and recommendations including anaction plan for future application of labor-based techniques will be preparedby the CTA at least one month before the termination of his services.

Procurement

37. Construction/improvement of roads under the pilot component will becarried out by force account to allow the necessary freedom and flexibilityfor experimentation and trials. Certain activities involving the use ofstandard type equipment (e.g. the transport of gravel, etc., over longdistances where tractors and trailers would be uneconomical) might be done bysubcontracts at the discretion of the CTA, the PMU and the DPUK, if thekabupaten does not posses or cannot rent the necessary standard equipment.

38. Routine maintenance work under the pilot component may be carriedout under a variety of different force account and contract arrangements(para. 16). A program for trials with different systems will be prepared bythe CTA for approval by the PMU and the DPUKs.

ANNEX 6-70- Page 9 of 9

39. Foreign consultants' services will be provided by the ILO inaccordance with terms of reference to be agreed by the GOI and the Bank.

Disbursement and Auditing

40. For civil works of the pilot component the procedures would be thesame as for the main component of the Rural Roads II project.

Environmental Aspects

41 do adverse environmental effects are anticipated through theexecution of the pilot component since the use of labor based methods andsmall equipment will reduce to a minimum the disturbance of property and thenoise and air pollution along the construction sites.

-71- ANNEX 7

Page 1 of 28

INDONESIA


Terms of Reference for Technical Assistance Services

I. INTRODUCTION

The Ministry of Home Affairs (MHA) is responsible ;for provincialand district administration in Indonesia, and is also responsible forimplementation of public works funded through the Inpres (PresidentialInstruction) programs. Two Inpres programs apply to district roadworks,namely Inpres Kabupaten (a per capita grant which, because of Indonesia'suneven population distribution, applies mostly to districts in Java) andInpres Jalan (specifically for roadworks, and oriented to districts outsideJava partly to redress the imbalance of Inpres Kabupaten). Within MHA, theDirectorate General of Regional Development (Bangda) is responsible for theabove Inpres programs, and the Directorate General of Regional Government(PUOD) is responsible for provincial and district administrative andorganization.

The Ministry of Public Works is the central government agencyresponsible for major public works, and within it, the Directorate General ofHighways (Bina Marga) is the highway authority. Bina Marga is responsible forassisting MHA on technical aspects of district road development, andparticipates on a Steering Committee for Rural Roads chaired by Bappenas, theNational Planning Authority.

Bina Marga and Bangda staff are seconded to a Project ManagementUnit (PMU) which on behalf of the Director General of Bangda is responsible tothe implementation and monitoring of all aspects of foreign-funded rural Roadsprograms including preparation of technical guidelines, and implementation ofinstitutional government.

With regard to the rural road sector, the major objectives ofIndonesia's Fourth Five Year Plan (1984/85 to 1988/89) are to: (a) enhanceeconomic development in rural areas; (b) provide better mobility to ruralcommunities; (c) increase accessibility in isolated areas by providing allweather Roads; (d) strengthen the capability of district staff to plan,construct and maintain the district road network; and (e) introduce suitabletechniques and works methods for road construction and maintenance.

In line with this, the long-term objective of the planningarrangements is that the districts should be able to survey and evaluateprojects and plan their own works prog-ams following rational planningprocedures with only limited guidance and sample vetting from higher levelagencies. Likewise, the long-term objectives of field technical assistance isthat district staff should be able to carry out, monitor and control road

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construction and maintenance work themselves, supported by consistent andclear guidance from higher levels.

In 1986 the Government of Indonesia received a loan (No. 2083-IND)from the World Bank for a Rural Roads Development Project (Rural Roads 1, RR1) including provision for civil works such as road upgrading and supportworks, equilment acquisition and technical assistance in various technical andmanagement areas. The scope of the Project included 25 districts spread overthe Provinces of North Sumatra, West Sumatra, Bengkulu, Jambi and West Java,assistance beginning in 1982/83.

The Government is now discussing with the World Bank the possibilityof another loan for an additional 53 or so districts spread over 9provinces. The proposed Rural Roads 2 project (RR 2) is plannned to begin in1988/89, and continue during the following two years. The project wouldinclude assistance for rehabilitation/improvement, routine and periodicmaintenance in the 53 districts. The 25 ex-RR 1 districts would also beinclude in the scope of maintenance programs during the three year RR 2Project period. All 78 districts are listed in Annex 1, while the estimatedscope of works is given in Table 3.2.

In the light of experience from the RR 1 Project, the Government andthe World Bank have reached agreement that during the RR 2 Project, morerigorous standards will be applied to planning, design and constructionsupervision of rural Roads, and that institutional strengthening andstructured training is required consistent with the Government's objectivesstated above.

It is expected that rehabilitation/improvement works will bebudgetted through Inpres Jalan, while road maintenance will be fundedprimarily from the Inpres Kabupaten budget. It is the Government's intentionthat planning and implementation of the rural Roads maintenance program shouldbe improved, and consultant technical assistance and training for thedistricts on preparation of detailed maintenance works programs will berequired.

Because of the difficulty of obtaining good quality works from smalllocal contractors during RR rl, most of the proposed RR 2 works will begrouped into packets for implementation by large contractors (those eligiblefor works of Rp 200 million or over). In addition, part of the program willbe carried out by force account, including routine maintenance and someperiodic maintenance and rehabilitation/improvement works. These works willbe the medium for practical training of district staff, for which consultanttechnical assistance and roadworks equipment is to be provided under the RR 2project.

The Project Management Unit is responsible for coordination andmonitoring of all activities on foreign funded rural Roads projects, as wellas planning activities in preparation for the RR 2 Project. The PMU will alsobe responsible for coordination and consistency of actions to be taken torealign duties and responsibilities of all agencies involved in the ruralRoads program throughout Indonesia, following Instructions and Guidelines

ANNEX 7Page 3 of 28

issued by the Minister of Home Affairs and the Director General of RegionalDevelopment in May 1987.

Coordination of such re-alignment will follow an action plan to beprepared and agreed between the Government and the World Bank. The actionplan will cover identification of present roles and staffing at all levels,preparation of modifications to roles of the various agencies, staffreallocation, recruitment and training.

II. TECHNICAL ASSISTANCE FOR PROJECT MANAGEMENT UNIT

The Government proposes to engage the services of an internationalconsulting firm (the Consultant) to assist the Project Management Unit.

2.1 Objectives

The main objectives of the services are as follows:

Institutional Improvement and Project Monitoring

(a) Assist the Project Management Unit to coordinate and monitor theimplementation of the Instruction of the Minister of Home Affairsand the Implementation Guidelines of the Director General ofRegional Development issued in May 1987 (refer Annex 2), in linewith the agreed Action Plan.

(b) Assist the Project Management Unit to coordinate and monitor allaspects of the Rural Roads Project including administration of Loandisbursements.

Technical Coordination

(c) Assist the Project Management Unit to coordinate consultantsemployed on separate contracts to provide technical assistance toDPUKs, for the training program, and for studies of localcontractors and aspects of Roads for development schemes.

(d) Under the coordination of the Project Management Unit assist BinaMarga to further develop and implement technical guidelines for allaspects of rural road and bridge rehabilitation, improvement andmaintenance, including pavement design, development of enhanced useof locally available materials, and the utilization and maintenanceof equipment.

Transport Planning

(e) Under the coordination of the Project Management Unit assist theSub-Directorate of Local Roads in Bipran, Bina Marga to develop overa period of two years a local capability in participating districtsto survey, analyze, screen and evaluate road projects and to preparetheir own works programs to a consistent and systematic standard.

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(f) Under the coordination of the Project Management Unit assist theSub-Directorate of Local Roads in Bipran, Bina Marga to review worksprograms after completion of design and cost estimates, and toevaluate the eligibility of projects for proposed World Bankassistance.

2.2 Organization and Responsibilities

Under the coordination of the Project Management Unit, theConsultant shall cooperate with the staff of the Directorate General ofRegional Development, the Directorate General of Highways, the ProvincialWorks and Provincial Development Bureaux, with the districts and with otheragencies related to the project in carrying out the services.

The team shall be based in Jakarta, and shall be under the controlof a Project Manager appointed by the implementing agency for the services whoshall deal with financial, contractual, administrative, technical and staffingmatters. The Project Manager shall be under the control of the Head of thePMU.

For certain tasks including where outlined in Section 2.3 below, theHead of the PMU in consultation with the field consultant's Project Officersmay delegate technical coordination of the field consultants to theConsultant. The project organization is shown in Annex 8.

The Consultant's role shall not include providing direct technicalguidance to the districts for design and implementation of district road andbridge works programs, for which separate Technical Assistance Services toDPUKs (field consultants) will be employed, who will be required to followguidelines established by the PMU.

Likewise, the field consultants' role does not include advising onadministrative, procedural or manpower policies, which should be referred tothe PMU, for which the Consultant's assistance may be requested. In relationto planning matters, the field consultant's role shall be limited to providingtechnical guidance on engineering aspects of route selection and design. Theyare required to refer matters of economic feasibility or works programs to theSub-Directorates of Local Roads in the Planning Directorate (Bipran), BinaMarga.

The Consultant's duties are expressed in outlined form in section2.3 below to provide further guidance in respect to overallresponsibilities. Any conflict of opinion arising from the interpretation ofthese duties or responsibilities shall be resolved by the Consultant inconsultation with the Project Manager and the PMU.

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2.3 Outline of Duties

2.3.1 Institutional Improvement and Project Monitoring

(a) The Consultant shall assist the Head of the PMU to coordinate landmonitor the implementation of the Action Plan for institutionalimprovement, including the development and coordination of agencyroles and responsibilities.

(b) Under the coordination of the Project Management Unit the Consultantshall assist the appointed training management agency to cooperatewith DGRD and DGH Training Divisions to plan and implementinstitutional strengthening at central, provincial and districtlevels.

(c) In relation to (c), the Consultant shall assist the DGRD and DGHTraining Divisions to carry out their respective roles in planning,coordinating and monitoring of training for district staff involvedin the rural Roads program.

(d) The Consultant shall assist the Project Management Unit to establisha system for monitoring and coordination of implementation of theAction Plan for institutional improvement and shall then assist inoperating the system.

2.3.2 Technical Coordination

(a) The consultant shall assist the Project Management Unit to monitorthe progress of all aspects of the Project, and shall provide thePMU with systematic routine information on key aspects of theproject, including loan administration. In carrying out this task,the Consultant shall make best use of data processing facilities,and shall train PMU staff in operation of the monitoring systems.

(b) Under the coordination of the Project Management Unit the Consultantshall assist the Operations Directorates of Bina Marga to monitorand coordinate the field consultant services, to provide them withtimely information on programs, schedules, procedures, guidelinesand key requirements related to their work.

(c) Under the coordination of the Project Management Unit the Consultantshall assist the Planning and Equipment Directorates in Bina Margain technical aspects of rural road and bridge design, constructionand maintenance of Roads and bridges, and in equipment repair andmaintenance. This shall include the following areas:

(i) Development of maintenance standards and survey procedures forthe network of maintainable rural Roads in 78 districts,collation and assessment of maintenance programs prepared bythe DPUK assisted by the field consultants, and monitoring ofimplementation of surveys and maintenance programs.

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(ii) Preparation of standards for planning, design, constructionand maintenance of bridges on district Roads, covering allrural bridges in the project districts as well as coordinationof bridge surveys to be carried out by the field consultantsand screening of bridge proposals prepared by the fieldconsultants.

(iii) Further development of standards for planning, design andconstruction of pavements on district Roads, including testingof materials in particular problem areas.

(iv) Overall coordination of force account works and related on-jobtraining of DPUK staff in 78 districts, including deploymentand utilization of equipment for force account works; overallcoordination of the introduction of construction methods suchas Lasbutag, crushed stone aggregate and cold mix for ruralroadworks, and development of quarry sites and crushing plantlocations.

gv) Establishment of standards of equipment repair and maintenancethroughout the project kabupatens, and coordination of theservices of the field consultants in this area, together withmonitoring of the procurement and distribution of equipmentand spare parts, the provision of equipment and repair andservicing through the DPUP and DPUK workshops, and monitoringof the condition of equipment.

2.3.3 TransPort Plannina

Under the coordination of the Project Management Unit, theConsultant shall assist the Sub-Directorate of Local Roads in Bipran, BinaNarga to carry out the following tasks:

(a) Review the results of preparation of the 1988/89 program and developand amend as necessary the approach for preparation of the 1989/90program, bearing in mind that the method of survey and analysisshould be suitable for application by district staff.

(b) Prepare and explain guidelines for survey, analysis and evaluationprocedures to district staff in a series of training sessions andseminars.

(c) Develop criteria for evaluating the capability of district staff tosurvey, analyze, screen and evaluate road projects, and reportresults to the PMU at least six months before the termination ofservices.

(d) Advise and assist designated staff of DPUK and BAPPEDA II in thefollowing tasks:

(i) selection of road network planning areas;


(ii) conduct of planning surveys including link identification andmapping, road condition and photographic surveys;

(iii) analysis of survey data and screening of projects;

(iv) evaluation of projects;

(v) preparation of provisional works programs and simple reportsincluding adequate maps

(vi) conduct of follow-up and monitoring surveys and analysis.

(e) Under the coordination of the Sub-Directorate of Local Roads inBipran, Bina Marga, Consultant staff based at central and provinciallevel shall be responsible for the following tasks:

(i) coordination of planning work at district level and provisionof technical guidelines and advice as needed;

(ii) conduct of special studies including evaluation of selectedprojects not amenable to generalized evaluation.

(iii) sample checking and review of project analysis results andreports completed by district staff and preparation of worksprogram summaries.

(iv) documentation at central level of road network data collectedin the participating districts, in consultation with the PMUmonitoring section;

(v) identification and initiation of follow-up and monitoringsurveys to be carried out by district staff with advice andguidance from local planning advisors;

(vi) final review and screening of works programs in the light ofdesign cost estimates when available;

(vii) further development, updating and amendment, as necessary, ofthe guidelines for survey, analysis and evaluation at districtlevel, including those for transmigration site Roads, in thelight of experience of works program preparation each year.

2.4 Staffing Requirements

The proposed services are to run from April 1, 1988 until 3eptember30, 1991, by which time the Project Completion Report is expected to have beencompleted.

2.4.1 Institutional Improvement and Project Monitoring

The Consultant shall provide the services of the followingprofessional staff based in Jakarta under the coordination of the Project

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Management Unit to assist the concerned executing agencies in relation toinstitutional improvement and project monitoring.

(a) One Indonesian Project Coordinator responsible for management of allIndonesian staff in order to foster technology transfer and closeworking relationships with the respective expatriate staff.

(b) One Indonesian Project Coordinator responsible for management of allIndonesian staff in order to foster technology transfer and closeworking relationships with the respective expatriate staff.

(c) One expatriate Training Coordinator to assist the Head of the PMUcoordinate and monitor the implementation of the Action Plan forinstitutional improvement for a period of 36 months.

(d) One Indonesian Management Advisor to assist with preparation of jobdescription of computerized monitoring systems for key aspects ofthe project, including loan administration.

(e) One expatriate Monitoring Systems Advisor responsible for furtherdevelopment of computerized monitoring systems for key aspects ofthe project, including loan administration.

(f) One Indonesian Data Processing Manager to be tesponsible forproviding the PMU with systematic routine information, assisting thePMU prepare documentation for Loan disbursements and providing..ining of PMU staff in all aspects of the monitoring systems.

(g) Two Tndonesian Computer Programmers to provide computer programmingservices for monitoring and planning activities.

(h) One expatriate Project Assessor responsible for evaluation ofproject effectiveness and for preparation of the Project CompletionReport, for a period of six months.

2.4.2 Technical Coordination

The Consultant shall provide the services of the followingprofessional staff based in Jakarta under the coordination of the ProjectManagement Unit to assist the concerned Sub-Directorates of Bina Marga in roadand bridge design, construction and maintenance, and in equipment repair andmaintenance.

(a) One expatriate Techn' al Coordinator responsible for coordination ofthe field consultants, and for coordinating the preparation oftechnical guidelines for a period of 36 months.

(b) Two Indonesian Highway Engineers to liaise with field services inWestern Region and in Central and Eastern Regions respectively,under the direction of the Technical Coordinator, each for a periodof 36 months.

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(c) One expatriate Road Mainten&nce Advisor responsible for developingmaintenance standards and survey procedures for the network ofmaintainable rural Roads in the project districts, and for guidingthe staff listed under (d) for a period of 24 months.

(d) Three Indonesian Highway Engineers to assist the PMU to collate andassess maintenance programs prepared by the field consultants and tom monitor implementation of surveys and maintenance programs eachfor a period of 24 months.

(e) One expatriate Bridge Advisor responsible for preparation ofstandards for planning, design, construction and maintenance ofbridges on district Roads, and for guiding the staff listed in (f)for a period of 24 months.

(f) Two Indonesian Bridge Engineers to assist the PMU to coordinatebridge surveys, screen bridge proposals and assist in preparingbridge standards for rehabilitation/improvement and maintenance ofall rural bridges in the project districts, each for a period of 24months.

(g) One expatriate Pavement Design Advisor responsible for furtherdevelopment of standards for planning, design and construction andfor guiding listed under (h), for a period of 12 months.

(h) Two Indonesian Pavement Engineers to carry out pavement andmaterials investigations and to assist in preparing standards forrehabilitation/improvement of rural road pavements, each for aperiod of 24 months.

'i) One expatriate Construction Advisor responsible for coordination offorce account works and related practical training of DPUK staff in78 districts, including deployment of equipment for force accountworks; responsible for coordinating the introduction of newmaterials and methods such as Lasbutag, crushed stone aggregate andcold mix for rural roadworks, and for guiding the staff listed under(j), for a period of 18 months.

(j) Three Indonesian Highway Engineers to monitor implementation offorce account works and related practical training of DPUK staff,and to liaise with the field consultants on introduction of newmaterials, methods and equipment for rural roadworks, each for aperiod of 24 months.

(k) One expatriate Mechanical Engineering Advisor responsible forestablishing standards of equipment repair and maintenancethroughout the project kabupatens, for coordinating the services ofthe field consultants in this area, and for guiding the staff listedunder (1).

(1) Two Indonesian Mechanical Engineers to monitor the procurement anddistribution of equipment and spare parts, the provision of

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equipment repair and servicing through the DPUK workshops in thethree Regions and to monitor the condition of equipment procuredunder the project, each for a period of 18 months.

2.4.3 Transport Planning

The Consultant shall provide the following professional staff for 24months based in Jakarta unless otherwise specified, and under the coordinationof the Project Management Unit to assist the Suo-Directorate of Local Roads inBipran, Bina Marga on transport planning activities.

(a) One expatriate Transport Planning Coordinator with overallresponsibility for.duties described in 2.3.2

(b) Three Indonesian Economist to carry out economic analysis andeval4ation for the central PMU planning team.

(c) Two expatriate Regional Transport Planning Coordinators based in aProvincial capital, one in Western and one in Central or EasternRegion, to be responsible for coordination of field planningadvisor's work (2.3.2 (e)) and provision of technical guidelines andadvice, review of project analysis results and reports completed bydistrict staff and for preparation of works program summaries.

(d) Eight Indonesian Field Planning Advisors, four based in WesternRegion, and two each in Central and Eastern Regions shall advise andassist staff of DPUX and BAPPEDA II in the conduct of planningsurveys, analysis of survey data, screening and evaluation ofprojects and preparation of works programs.

(e) One expatriate Transmigration Coordinator responsible forcoordination of field planning advisor's work (2.3.2 (e)) andprovision of technical guidelines and advice, for conduct of specialstudies, and for sample checking and review of project analysisresults and preparation of works program summaries for Roads totransmigration sites.

(f) Two Indonesian Transmigration Planning Advisors, one based in SouthSumatra and one in Lampung, to advise and assist staff of DPUKandBAPPEDA II in the conduct of planning surveys, analysis of surveydata, screening and evaluation of projects and preparation of worksprograms in relation to Roads for transmigration sites.

(g) One expatriate Planning Engineering Advisor responsible fordevelopment and documentation of systematic costing methods forrural roadworks and for guiding the local staff under (h).

(h) Three Indonesian Highway Engineers to coordinate and monitor theimplementation of costing systems for rural roadworks in Western,Central and Eastern Regions respectively.

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III. TECHNICAL ASSISTANCE FOR DPUKS

The Government proposes to engage the services of three separateinternational consulting firms to provide advisory services, technicalassistance and training to. 78 selected district works agencies (DPUKs) inWestern, Central and Eastern Regions of Indonesia.

Western Region includes 42 districts in 7 provinces in Sumatera,including Aceh, North Sumatera, West Sumatera, Jambi and Bengkulu, SouthSumatera and Lampung.

Central Region includes 20 districts in West Java Province.

Eastern Region includes 16 districts in 3 provinces, namely CentralSulawesi, West Kalimantan and N.T.T. (Nusa Tenggara Timur).

Districts involved are detailed in Annex 1, and the estimated scopeof works by Province is detailed in Table 3.2.

3.1 Objectives

The main objectives of the services are, in cooperation with theDinas Bina Marga (DBM) and the Provincial Public Works Agency (DPUP) to:

(a) Assist the DPUKs to implement road and bridge rehabilitation andimprovement works, from design to supervision, and assist the DPUKsto program and implement road and bridge maintenance,

(b) Carry out practical training of district staff in all aspect ofrural road construction and maintenance.

(c) Monitor and certify designs and completed works, and provideinformation as required by the Project Management Unit to facilitatedisbursement of Bank-funded works.

In general, the Consultant shall act in consistency with theinstruction of the Minister of Home Affairs and the Implementation Cuidelinesof the Director General of Regional Development issued in May 1987 (refer toAnnex 2).


Under the overall coordination of the Project Management Unit, theConsultant teams shall work under the administrative, financial, contractualand technical control of the Heads of the Sub-Directorates of Local Roads inthe Western, Central or Eastern Regional Operations Directorates of BinaMarga, who will appoint a Project Manager. The Project Manager shall be underthe control of the Head of the PMU in relation to the implementation of theseServices.

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The Consultant shall cooperate with the staff of district agencies,Provincial Public Works Departments and Provincial Development Bureaux, withthe central level Project Management Unit and with other agencies related tothe project. In providing technical guidance to the DPUKs, the Consultantshall keep the respective DPUP fully informed.

The Consultant shall also cooperate with the consultants appointedunder separate contract for PMU advisory services. For certain tasksincluding where outlined in Section 3.3 below, the Head of the PMU inconsultation with the Project Officer may delegate coordination of theConsultant's work to the PMU consultants. The project organization is shownin Annex 8.

The Consultant's team leader shall exercise overall control of theconsultant staff employed in the field, and provide them with the necessaryfacilities and services as provided for under the contract.

The Consultant's primary role shall be to provide technical guidancefor design and implementation of district road and bridge works programs.Where assistance is requested on administrative, procedural or manpowerpolicies, the Consultant shall refer to the PMU. The Consultant's role onplanning matters shall. be limited to providing technical guidance onengineering aspects of route selection and design. They shall refer mattersof economic feasibility or works programs to the PMU.

The Consultant's duties are expressed in outlined form in section3.3 below to further guide him in respect to his responsibilities. Anyconflict of opinion arising from the interpretation of these duties orresponsibilities shall be resolved by the Consultant in consultation with theProject Officer and the PMU.


Under the coordination of the Sub-Directorate of Local Roads in theWestern, Central or Eastern Regional Operations Directorate of Bina Marga atcentral level and DPUP at provincial level, the Consultant shall assist theDistrict Public Works Agencies (DPUKs) in the following tasks:

(a) After draft works programs have been prepared by the DPUKs andBAPPEDA IIs and approved for design by the central government, theConsultant shall assist and provide technical guidance to the DPUKsincluded for rehabilitation/improvement programs (listed in Annex 1)to carry out detailed engineering surveys and design for each year'srehabilitation/improvement program based on procedures to be issuedby Bina Marga.

(b) The Consultant shall be responsible for certifying the designdrawings and quantity estimates to signify compliance with BinaMarga's technical standards, however, the drawings and estimatesshall be finally authorized by district staff. Where parts of thedesigns are not in compliance with the technical standards, theConsultant shall inform the Head of the DPUK, as responsible officerfor the civil works.

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(c) The Consultant shall assist each of the DPUKs to prepare technicalspecifications for the works to be constructed under the 1988/89 to1990/91 programs in each district. Draft specifications shall bediscussed first by the Consultant with the PMU, and in generalshould be based on standard rural Roads specifications as approvedby Bina Marga. The estimated scope of rehabilitation/improvementworks is shown in Table 3.2.

(d) The Consultant shall assist the Tender Committees in each of theDPUKs to evaluate technical aspects and provide technical advice inrelation to tenders submitted for the 1988/89 to 1990/91 programs.

(e) The Consultants shall review the procedural requirements of contractdocuments in use in each district, and recommend to the ProjectManagement Unit what changes in documentation, procedures orsupervision may be required in future to encourage properimplementation of district road and bridge works and carried out bycontract.

(f) The Consultant shall assist each of the DPUKs to monitor progress ofcivil works implemented under the Project in each district, and theDistrict Engineer (see para. 5.2 (b)) shall countersign the monthlyprogress reports (Form DJ-1) prepared by the DPUK, and the PaymentCertificates (Berita Acara), to certify agreement with the progressreported therein. Where parts of the works are not in thecompliance with the specifications, the Consultants shall inform theHead of the DPUK, as responsible officer for the civil works.

(g) In order to record quantity and quality of works as a basis forcertification, the Consultant shall provide daily full-timeinspection on each rehabilitation/improvement project.

(h) The Consultant shall assist DPUK supervisory staff to employ thecorrect standards and procedures for materials testing and worksquality control using laboratory equipment provided under theProject to each district.

(i) In accordance with guidelines prepared by the Project ManagementUnit, the Consultant shall assist the DPUKs included for maintenanceprograms (listed in Annex 1) to carry out surveys and prepare roadmaintenance programs for each district, emphasizing routine andperiodic maintenance on Roads in good and fair condition, and shallreport to the Project Management Unit on current and proposedmaintenance programs.

(j) The Consultant shall concentrate particular effort on providingtechnical advice and assistance to DPUK staff on force accountprojects as a medium for practical training, and shall encourageDPUK supervisory staff to keep daily diaries and measurement bookswith records of (e.g.) materials delivered and work done, equipmentusage and availability, and problems met and solved, together with

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weekly comparison with planned work schedule. The Consultant'sinspectors shall use similar diaries on contract inspection.

(k) The Consultant shall conduct a mixture of formal (20%) and practical(80%) training for about 20 technical staff from each DPUK includingsupervisors, surveyors, laboratory technicians, tradesmen andoperators, using training opportunities on force account projects,operator training grounds, DPUK workshops, laboratories and otherfacilities. In carrying out this training, the Consultant shall becoordinated by the Project Management Unit, shall use trainingmaterials where provided by Bina Marga's Training Centre, and shallcooperate with the Provincial level training officials who areresponsible for formal training.

(1) The Consultant shall provide technical and management advice to theDPUPs and DPUKs on distribution, deployment and utilization of anyavailable roadworks equipment for construction or maintenance andshall assist in preparing and updating equipment schedules. TheConsultant shall also assist the DPUPs and DPUKs on operation,management and maintenance of roadworks and workshop equipment.

(m) The Consultant shall provide general technical guidance and adviceas requested by DPUKs or DPUPs concerning improvement,rehabilitation and maintenance of district Roads that are fundedfrom Inpres Jalan and Inpres Kabupaten but without Bank assistance.

(n) The Consultant shall recommend to the Project Management Unit wherehe considers it necessary for guidelines to be issued forimplementation of technical aspects of district road and bridgeworks, or for design standards. All technical and administrativeguidelines and standards shall be issued by the Central Government.

(o) The Consultant shall assist the DPUKs to update the district's baseroad maps, based on guidelines to be issued by the PMU.

(p) The Consultant shall, in carrying out the duties outlined and inaccord with the intent and objectives of the Government and theWorld Bank expressed in para. 1., assist the PMU, the DPUPs and theDPUKs in the implementation of the programs for institutionalstrengthening and technology transfer through technical guidance andformal, counterpart and practical training for which the PMU andDiklat Bina Marga have line responsibility.


The Consultant shall provide the services of:

(a) One expatriate Team Leader responsible for all consultancy servicesunder this Terms of Reference reside in Jakarta and travel regularlywithin the project region.

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(b) Ten expatriate District Engineers, two each based in the Provincialcapitals of Aceh, North Sumatera and South Sumat.ra and one eachbased in the Provincial capitals of West Sumatera, Jambi, Bengkuluand Lampung, all travelling at least 15 days per month within thedistricts.

(c) Five expatriate Mechanical Advisors, one each based in theProvincial capitals of Aceh, North Sumatera, West Sumatera, SouthSumateria and Lampung, each for a period of 24 months. The Advisorsbased in Padang and Palembang shall oversee the services of theMechanical Engineers (see 3.4.1.f) based in Bengkulu and Jambirespectively.

(d) One Indonesian highway engineer as Field Coordir.ator in Jakarta.

(e) Fourteen Indonesian professional Field Engineers; 3 for Aceh, 2 forNorth Sumatera, 2 for West Sumatera, 1 for Bengkulu, 2 for Jambi, 2for South Sumatera, and 2 for Lampung, based in a district orprovincial capital and travelling at least 20 days per mosith in thedistricts.

(f) Ten Indonesian professional Mechanical Engineers; 2 for Aceh, 2 forNorth Sumatera, 1 for West Sumatera, 1 for Bengkulu;, 1 for Jambi, 2for South Sumatera, and 1 for Lampung, based in a district orprovincial capital and travelling at least 20 days per month in thedistricts, each for a period of 30 months.

(g) Ten qualified Indonesian master mechanics and ten master operators,each for a period of 24 months.

(h) Twenty nine qualified Indonesian technicians, including laboratory/soils technicians and qualified surveyors, each for a period of 24months.

(i) One Indonesian inspector for each road or bridge project, for anestimated period of 6 months per average 6.5 km project. Attachment2 to Annex 5 shows the estimated length of the works program in eachyear.

(j) One Indonesian Training Officer to coordinate the implementation ofpractical training carried out under the services.

3.4.2 Central Region

The Consultant shall provide the services of the following staff fora period of 36 months unless otherwise stated:

(a) One expatriate Team Leader responsible for all consultancy servicesunder this Terms of Reference.

(b) Two expatriate District Engineers, all travelling at least 15 daysper month within the districts.

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(c) Two expatriate Mechanical Advisors, both for a period of 24 months.

(d) One Indonesian highway engineer as Field Coordinator based inJakarta.

(e) Seven Indonesian professional Field Engineers, based in a districtor the provincial capital and travelling at least 20 days per monthin the districts.

(f) Three Indonesian professional Mechanical Engineers, based in adistrict or the provincial capital and travelling at least 20 daysper month in the districts, each for a period of 30 months.

(g) Eight qualified Indonesian master mechanics and eight masteroperators, each for a period of 24 months.

(h) Thirteen qualified Indonesian technicians, including laboratory/soils technicians and qualified Indonesian surveyors, each for aperiod of 24 months.

(G) One Indonesian inspector for each road or bridge project, for anestimated period of 6 months per average 6.5 km project. theestimated total length of the terks program in each year is shown inAttachment 2 to Annex 5.


3.4.3 Eastern Region

The Consultant shall provide the services of the following staff fora period of 36 months unless otherwise stated:

(a) One expatriate Team Leader responsible for all consultancy servicesunder this Terms of Reference.

(b) Six expatriate District Engineers, two each based in the Provincialcapitals of Central Sulawesi, NTT and West Kalimantan, alltravelling at least 15 days per month within the districts.

(c) Three expatriate Mechanical Advisors, one each based in theProvincial capitals of Central Sulawesi, NTT and West Kalimantan,each for a period of 24 months.

(d) One Indonesian highway engineer as Field Coordinator based inJakarta.

(e) Eleven Indonesian professional Field Engineers, based in a districtor provincial capital and travelling at least 20 days per month inthe districts.

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(f) Six Indonesian professional Mechanical Engineers, based in adistrict or provincial capital and travelling at least 20 days permonth in the districts, each for a period of 30 months.

(g) Seven qualified Indonesian master mechanics and seven masteroperators, each for a period of 24 months.

(h) Eighteen qualified Indonesian technicians, including laboratory!soils technicians and qualified Indonesian surveyors, each for aperiod of 24 months.

(i) One Indonesian inspector for each road or bridge project, for anestimated period of 6 months per average 6.5 km project. Theestimated total length of the works program in each year is shown inAttachment 2 to Annex 5.


IV. TECHNICAL ASSISTANCE FOR TRAINING

4.1 Objectives

4.1.1 General Objectives

(a) The principle objective is that all training and manpowerdevelopment inputs for the rural Roads program shall be consistentwith accomplishing institutional improvement and the long-termnational objectives set out in the Ministerial Decree and Director-General of Bangda's implementation Guidelines (refer to Annex 2)aimed at achieving district self-sufficiency to manage, plan,administer, design, construct and maintain the district's roadnetworks to acceptable standards.

(b) The second general objective is to establish a comprehensivetraining and manpower development program which can be continued bythe districts on an ongoing and nationwide basis to maintaindistrict self-sufficiency in the road sector once self-sufficiencyis established.

(c) The third general objective is to develop and strengthen therelevant training organizations at district, provincial and centrallevel to achieve a professional capacity and adequate resourcecapability to manage training for a sustained long-term manpowerdevelopment program.

4.1.2 Specific Objectives

The Government proposes that the following training inputs anddevelopment of training resources should be provided under the Second RuralRoads Project;

-88- ANNEX 7

Page 18 of 28

Overseas Training

(a) Short (3 month) overseas study programs for about 80 DPUK and DPUPtechnical and management staff at suitable organizations with anemphasis on study areas in the fields of Project Management andAdministration, Transport Planning, and Road Maintenance.

(b) Academic upgrading for about 10 DCH or DPUP staff through Masterslevel (2 year) courses in the fields of Transport Plar.r.ing andTransport Economics at a suitable institute overseas.

In-Country Training

(c) Strengthening of the present DGRD and DGH Training Divisions atCentral and Provincial levels to provide a comprehensive approach tomeet the training needs of the rural sector, and to implement thetraining program.

(d) Five certificate courses in Highway Engineering of 3 to 4 monthsduration at the Institute of Technology, Bandung for about 25 DPUKand DPUP engineers.

(e) Five certificate courses in Bridge Engineering of 3 to 4 monthsduration at the Institute of Technology, Bandung for about 25 DPUKand DPUP engineers.

(f) Formal courses of 4 week's duration for about 350 senior DPUK staffat Bina Marga and Bangda training centers in Jakarta covering about12 topics including Project Management, Transport Planning andMethods of Instruction.

(g) Formal courses of 1 week's duration for about 1,330 DPUK staff atProvincial Training Centers covering courses including ConstructionManagement, Road and Bridge Design, Workshop Management, andTraining Management.

(h) A mixture of formal (20%) and practical (805) training for about1,600 DPUK technical staff including supervisors, surveyors,laboratory technicians, tradesmen and operators, using trainingopportunities on force account projects, operator training grounds,DPUK workshops, laboratories and other facilities.

(i) Updating of present curricula for training courses listed under4.1.2 (d) (e) and (f) and development of new courses where required.

(j) Upgrading of training center resources, training aids and libraryfacilities, at Central and Provincial levels. It is not anticipatedthat new buildings will be required.


4.2 Scope of Services

Training inputs for institutional improvement and strengthening ofcentral training facilities and organizations (4.1.2 (c) and (j) will beprovided under separate consultant services to the PMU, while practicaltraining in the district (4.1.2 (h)) will be assisted under separateconsultant services to the DPUKs.

To assist the Government to provide and coordinate the trainingcourses to to be conducted overseas and in-country, the Government proposes toengage the services of an international consulting firm. The duties of theConsultant would be as follows:

(a) Assist MPW, DGH and DGRD to arrange overseas training courses asdescribed under 4.1.2 (a) and (b) above.

(b) Assist MPW, DGH and DGRD to improve the existing MPW, DGH and MHAformal training programs for technical and administrative staff ofdistriccs and provinces concerned with district Roads, and inparticular for the courses described under 4.1.2 (d) to (g) above.Improvements should be based )n a pilot study to be completed byJanuary 1988.


Under the overall coordination of the Project Management Unit, theConsultant teams shall work under the administrative, technical, financial andcontractual control of the Head of the Training Center of Bina Marga who willappoint a Project Officer.

The Consultant shall cooperate with the staff of district agencies,Provincial Public Works Departments and Provincial Development Bureaux, withthe central level Project Management Unit and with other agencies related tothe project.

The Consultant shall also cooperate with the consultants appointedunder separate contract for PMU advisory services. For certain tasksincluding where outlined in Section 4.4 below, the Head of the PHU inconsultation with the Project Officer may delegate coordination of theConsultant's work to the PMU consultants. The project organization is shownin Annex 8.

The Consultant's duties are expressed in outlined form in section4.4 below to further guide him in respect to his responsibilities. Anyconflict of opinion arising from the interpretation of these duties orresponsibilities shall be resolved by the Consultant in consultation with theProject Officer and the PMU.



4.4.1 Coordination of Overseas Training

(a) The Consultant shall assist the Project Management Unit and the DGRDand DGH Training Divisions to conduct an overseas training programaimed at longer term upgrading of middle level staff in both DPUPsand OPUKs. This will include preparation of course curricula,arrangements for travel, accommodation and course fees for trainees,orientation including technical English language preparation asrequired, and procedures as well as systems for candidate selectionincentive, and placement.

4.4.2 Coordination of In-Country Training(a) The Consultant shall assist the Project Management Unit and the DGRD

and DGH Training Divisions (Provincial and Central) to implement anexpanded and improved in-country training program for district andother staff which will follow the guidelines set down in theTraining Development Plan and will in general terms:

(i) develop the technical skill and knowledge of the DPUPs andDPUKs personnel in each work area to enable them to performthe tasks identified in their respective job analyses undernormal supervision;

(ii) develop specialized and advanced technical skills andknowledge of key personnel in each work area to enable them tosupervise and train personnel within their work areas; and

(iii) develop management and supervisory skills and knowledge ofsupervisor and management groups to enable them to manage therural Roads development program, with the objective that inthe future the DPUKs will be able to be self-sustained inproperly handling planning, construction and maintenance workson their own road networks.

(c) The Consultant shall assist the Project Management Unit and the DGRDand DCH Training Divisions (Provincial and Central) in theenlargement of the scope and intensity of Provincial and DistrictRoads training to include certificate level programs for roadengineers and bridge engineers at ITB in Bandung. This will includethe introduction of improvements to procedures and training programcontent as well as systems for candidate selection, incentives andplacement.


The proposed services are to run from July 1, 1988 until the end ofJune 1990, following completion of the two-year training program.

The Consultant shall provide the services of the followingprofessional staff based in Jakarta for 24 months to assist the PMU to review

-91- ANNEX 7

Page 21 of 28

and develop training curricula, arrargements for courses and procurement oftraining aids:

(a) One expatriate Training Advisor responsible for training andmanpower aspects of the Consultant's tasks in relation toinstitutional strengthening and training.

(b) Two Indonesian Training Advisors to assist with course and materialsdevelopment in relation to all training activities.

(c) Short term expatriate specialist services in coursa development,training and curriculum for a total of 24 man-months.

(d) A total of about 73 man-months of Indonesian Course Instructors.

V. TECHNICAL ASSISTANCE FOR STUDIES

The Government proposes to engage the services of an internationalconsulting firm (the Consultants) to carry out a study of local contractorsand contracting in relation to the rural Roads program, and a study ofimproved arrangements for handling Roads built under development schemes(principally transmigration and plantation schemes).

5.1 Objectives

5.1.1 Study of Local Contractors and Contracting

The main objectives of the study would be to identify what actionshould be taken by the Government to upgrade the quality of small-scalecontractors for district roadworks, including procedures used to administerlocal contracts.

5.1.2 Study/Review of Roads in Development Schemes

The principal objectives of the study of Roads built underdevelopment schemes would be to review present practices and to recommendimproved arrangements covering aspects of design, construction and maintenancestandards, institutional responsibilities and processes for programming,budgeting and implementation, and the process of transfer to district orprovincial authorities.


The Consultant teams shall work under the control of the ProjectManagement Unit. A Project Manager authorized to deal with administrative,technical, financial and contractual matters shall be appointed by BinaMarga. The Project Manager shall be responsible to the Head of :he PMU inrelation to the implementation of these Services.

-92- ANNEX 7

Page 22 of 28

The Consultant shall cooperate with the staff of district agencies,Provincial Public Works Departments and Provincial Development Bureaux, withthe central level Project Management Unit and with other agencies related tothe project.

The Consultant shall also cooperate with the staff of districtagencies, Provincial Public Works Departments and Provincial DevelopmentBureaux, with the central level Project Management Unit and with otheragencies related to the project.

The Consultant shall also cooperate with the consultants appointedunder separate contract for PMU advisory services. For certain task includingwhere outlined in Section 5.3 below, the Head of the PMU in consultation withthe Project Officer may delegate coordination of the Consultant's work to thePHU consultants. The project organization is shown in Annex 8.

The Consultant's duties are expressed in outlined form in section5.3 below to further guide him in respect to his responsibilities. Anyconflict of opinion arising from the interpretation of these duties orresponsibilities shall be resolved by the Consultant in consultation with theProject Officer and the PMIU.


5.341 Study of Local Contractors and Contracting

The Consultant shall assist the Project Management Unit to:

(a) Establish, in the light of contractor prequalification criteria andthe past history of rural road construction standards, the existingskilled manpower resources and equipment available to representativeClass C and Class B contractors in a pilot group of districts inselected provinces associated with the Rural Roads 2 Project.

(b) Identify the manpower and regulatory constraints which prevent theDPUKs from adequately supervising and instructing the contractors atthe job site.

(c) Review previous studies and programs aimed at improving contractorcapability in all prequalification classes at national, provincialand district levels, and assess the impact and effectiveness thesestudies and programs have had to date.

(d) Identify the effect, if any, that force account activities have oncontractor capability in all prequalification classes at national,provincial and district levels, and assess the impact andeffectiveness these studies and programs have had to date.

(e) Recommend on the basis of the above, the feasible and acceptableinstitutional strengthening processes, organizational and/orprocedural improvements and training inputs which might be necessaryto accomplish a staged and ongoing upgrading of local contractorskills at District level.



Under the coordination of the Project Management Unit, theConsultant shall assist the Sub-Directorate of Local Roads in the PlanningDirectorate of Bina Marga to:

(a) Identify current arrangements for planning and programming of Roadsto serve development schemes, in particular for agricultural andtransmigration schemes, and propose feasible and acceptableinstitution strengthening processes, organizational and/orprocedural improvements and training inputs which might be necessaryto provide a consistent approach to that for other rural Roads.

(b) Identify present standards and procedures for design andconstruction of Roads serving agricultural and transmigrationschemes, and recommend appropriate standards and improvedarrangements for implementing design and construction of suchroads/or procedural improvements and training inputs which might benecessary.

(c) Propose appropriate maintenance standards and methods fordevelopment scheme Roads, covering Roads which are still beingplanned, Roads which are under construction or already completed,and Roads already handed over to district or provincial authorities.

(d) Examine the process of transferring such Roads to district andprovincial authorities, and recommend improved procedures, includingadequate budgeting for maintenance and rehabilitation, andinstit'xtional strengthening, organizational and/or proceduralimprovements and training inputs which might be necessary.


5.4.1 Study/Review of Local Contractors and Contracting

The Consultant shall provide the services of the followingprofessional staff based in Jakarta for 12 months to assist the PMU to carryout the study of local contractors:

(a) One expatriate Construction Management Advisor responsible for theimplementation of the study described in section 5.3.

(b) Two Indonesian Highway Engineers, one having experience inmanagement of a roadworks contracting firm, the other experienced incontract supervision and project management.


The Consultant shall provide the services of the followingprofessional staff based in Jakarta for 12 months to assist the PMU to carryout the study of development scheme Roads:

ANNEX 7Page 24 of 28

(a) One expatriate Agricultural Development Advisor experienced in thetransport sector and responsible for carrying out the study ofdevelopment scheme Roads.

(b) Short-term expatriate specialist services in the fields ofengineering, transport planning and management.

(c) One Indonesian Management Specialist to assist with proceduralaspects of the study.

(d) One Indonesian Transport Planner to assist with planning aspects ofthe study.

VII. SUMMARY OF TECHNICAL ASSISTANCE SERVICES

7.1 Staffing and Man-Months

7.1.1 Technical Assistance for Project Management Unit

TOR Field Expatriate Advisors Indonesian Professionalsof Man- Man-

Ref. Activity Position Months Position No. Months

2.4.1. Institutional Team Leader 42 Proj. Coordinator 1 36Improvement Training & Mgt Management& Monitoring Coordinator 36 Specialist 1 36

Monit. Syst. Adv 36 Data Proc. Mgr 1 36Proj. Assessor 6 Comp. Program. 2 72

2.4.2. Technical Tezh. Coord. 36 H'way Engineer 2 72Coordination Maint. Advisor 24 H'way Engineer 3 72

Bridge Advisor 24 Bridge Engin. 2 48Pavem. Des. Adv. 12 Pavement Eng. 1 48Construct. Adv. 18 H'way Engineer 3 72Mechanical. Adv 24 Mechanical Eng 1 36

2.4.3. Transport Tr. Plan. Coord. 24 Economist 3 72Planning Reg. T.P. Coord. 48 Field Plan. Adv 8 192

Transmig. Coord. 24 Trans. Plan. Adv 2 48Plan. Engin. Adv 24 H'way Engineer 3 72

Total Man-Months 378 912

-95- ANNEX 7

Page 25 of 28

7.1.2. Technical Assistance for DPUK's

(a) Western Region (refer to TOR para. 3.4.1)

Expatriate IndonesianRegion No. of Professional Professional Sub-Profess'l

DistrictsProvince Hwy. Mech. Field Mech Master Tech-

Const Maint Eng. Adv. Eng. Eng. Mech&Oper nician

1 Team 1 Field CoordinatorLeader

1. Aceh 8 8 2 1 3 2 4 62. North Sumatra 5 11 2 1 2 2 4 63. West Sumatra 4 8 1 1 2 1 2 44. Bengkulu - 3 1 1 1 2 25. Jambi - 5 1 2 1 2 36. South Sumatra 4 4 2 1 2 2 4 57. Lampung 3 3 1 1 2 1 2 3

1 Training Officer

Sub-Total 24 42 11 5 16 10 20 29

Length of Service: 36 24 36 30 24 24

Total Man-Months: 396 120 576 300 480 696

1 Includes laboratory technicians and surveyors.

-96- -96- ~~~~~ANNEX 7 Page 26 of 28

(b) Central Region (refer to TOR para. 3.4.2.)


DistrictsProvince Hwy. Mech. Field Mech Master Tech-



1. West Java 13 20 2 2 7 3 16 13

Sub-Total 13 20 3 2 7 3 16 13


Total Man-Months: 108 48 324 90 384 312

# Includes laboratory technicians and surveyors.

(c) Eastern Region (refer to TOR para. 3.4.3.)


DistrictsProvince Hwy. Mech. Field Mecn Master Tech-



1. Cent Sulawesi 4 4 2 1 4 2 4 62. N.T.T. 6 6 2 1 4 2 4 63. West Kalimant. 6 6 2 1 3 2 6 6

. Training Officer

Sub-Total 16 16 7 3 13 6 14 18


Total Man-Months: 252 72 468 180 336 432

# Includes 'aboratory technicians and surveyors.

-97- ANgNE 7Page 27 of 28

(d) Summary of Staffing & Man-Months for Assistance to DPUK's

Expatriate. IndonesianRegion No. of Professional Professional Sub-Profess'l

Districts11 Provinces Hwy. Mech. Field Mech Master Tech-


No. of Staff 53 78 21 10 38 19 S0 60


Total Man-Months: 756 240 1,368 570 1,200 1,440

7.1,3 Technical Assistance for Traiing



4.4 In-Country & Training TrainingOverseas Advisors 24 Advisors 2 48Training Short-Term

Specialists 24 Instructors 5 73

Totals 48 7 121

-98- ANNEX I

Page 28 of 28

7.1.4 Technical Assistance for Studies



5.4.1 Study of Local Construction H'way Engineer 2 24Contractors Managemt Adv. 12

5.4.2 Study of Agric. Devl. Adv 12 Management Adv. 1 12Development Short-TermScheme Roads Specialists 12 Transport Plan. 1 12

Highway Eng. 1 12

Totals 36 5 60

7.2 Cost of Services

Technical Expatriate Local TotalAssistance Man-M Cost Man-M Cost Cost

for US$ m. US$ m. US$ m

1. PMU 378 4.7 912 3.7 8.42. DPUK's 996 12.5 4,578 10.7 23.23. Training 48 0.6 121 0.5 1.14. Studies 36 0.5 60 0.2 0.7

Total 1,458 18.3 5,671 15.1 33.4

ANNEX 8Page 1 of 7

INDONESIA


Project Management Unit (PMU)

I. Scope of Duties

The PMU's scope of duties are as follows:

1. Coordination of Program Preparation

Assist in program preparation and annual budgetting for Inpres Jalan andInpres Kabupaten for kabupatens which obtain assistance from foreign aidagencies, in cooperation with Dit. Jen Bina Marga (Dit. Bipran), BAPPENAS(Transport and Communications Bureau), and the Directorate General ofBudgets in Finance Department.

Assist the kabupatens and provinces in preparation of budgetapplications.

Work together with the Sub-Directorate of Local Roads in Bipran inensuring that planning makes best use of present road networks andfollows planning guidelines established by Bina Marga.

2. Control of Program Implementation

Monitor and evaluate program implementation, including technical aspectsof implem2ntation, and ensure that technical guidance and support isprovided to the DPUKs for all aspects, from design to supervision ofworks.

3. Equipment and Materials

Assist in procurement of equipment and materials, from the planning,purchase , distribution up to the installation and operation of equipment(including workshop and laboratory equipment).

4. Training and Institutional Improvement

Monitor the implementation of the Action Plan for institutionalimprovement prepare manpower development plans, and manage and implementrecruitment and training carried out for the rural roads program, incooperation with the Bina Marga and Department of Home Affairs trainingcenters.

5. Loan Administration

Manage the administration pf foreign aid.

ANNEX a-100- Page 2 of 7

6. Consultants

Act as counterparts for project consultants, and coordinator their workin achieving overall project objectives.

7. Policy

Carry out the policy of the Directorate General of Regional Development(DGRD) and the Steering Committee for Rural Roads.

The PMU is responsible to the Director General of Regional Development.

II. Organization Structure for PMU

1. The relationship of the PMU to the Government organization structure isshown on page 6.

2. The internal organization structure of the Project Management Unit isshown on page 7.

III. Outline of Duties

1. Steering Committee

The Steering Committee consists of:

- Deputy Chairman of Bappenas and staff- Director General of Regional Development and staff- Director General of Bina Marga and staff- Representatives of the Ministry of Finance.

The Steering Committee's duties are to give direction and policy on theimplementation of the Rural Roads Project.

2. Project Management Unit Team

(a) The Head of the PMU is to:

Set in motion and provide overall coordination of all activities ofthe PMU.

Carry out policy on implementation as outlined by DGRD and theSteering Committee.

Be responsible to the Director General of Regional Development

(b) Loan Project Coordinators have the duties of:

Coordinating all activities relating to the implementation offoreign assistance for rural roads provided to IBRD, ADB, USAID andOECF.


Providing administrative services for loan administration andmonitoring including provision of information to all key staff ofthe PMU and to the projects in the field.

To carry out the above duties, the Loan Project Coordinators are to beassisted by staff dealing with:

Providing information services (monitoring and evaluation) tosupport the control of program execution.

Preparing reports on program execution for the Steering Committeeand for foreign aid agencies.

Preparation of disbursement applications, and monitoring ofdisbursement progress.

Loan Project Coordinators will be responsible to the Head of the PMU.

(c) Assistant for Engineering

Providing technical services to the Project Management Unit inrelation to project implementation.

To carry out his duties, the Assistant for Engineering will be assistedby staff dealing with:

Preparation of annual programs including provision of counterpartfunds.

Reviewing and publishing technical guidelines for all aspects of therural roads program.

The Assistant for Engineering will be responsible to the Head of the PMUbut should refer matters first to the Loan Project Coordinator for therespective Project.

(d) Assistant for Equipment and Materials has the duties of:

Preparing programs and schedules for the procurement of equipmentand materials in relation to the foreign assisted rural roadsprograms

Monitoring and controlling the procurement and distribution ofequipment and materials for the foreign assisted rural roadsprograms.

Assisting in giving training and guidance so that all equipment(including workshop and laboratory equipment) and materials bothfrom foreign aid and locaLly procured may operate efficiently tosupport the rural roads program.

-102- ~~~~~ANNEX 8-102- Page 4 of 7

Reviewing in giving training and guidance so that all equipment(including workshop and laboratory equipment) and materials bothfrom foreign aid and locally procured may operate efficiently tosupport the rural roads program.

Reviewing and publishing technical guidelines relating to themanagement of workshops, equipment and materials.

Monitoring and evaluating the management of workshops and the use ofequipment and materials.

The Assistant for Equipment and Materials will be responsible to the Headof PMU but should refer matters first to the Loan Project Coordinator forthe respective Project.

(e) Assistant for Manpower Development and Trainin& has the duty of:

Monitoring the implementation of the Action Plan for institutionalimprovement.

Preparing manpower development plans and related training systemsfor district, provincial and central level staff in relation torequirements of the rural roads program.

Managing and implementing the recruitment and training of projectstaff at district, provincial and central level. In carrying outthis duty the Assistant for Training will cooperate with DGRD andthe Training Divisions of Bina Marga and Ministry of Home Affairs.

The Assistant for Manpower Development and Training will be responsibleto the Head of the PMU but should refer matters first to the Loan ProjectCoordinator for the respective Project.

(f) Regional Coordinators have the duties of:

Coordinating and monitoring the activities of the ProvincialCoordinators.

Facilitating the relationships between the Provincial Coordinatorsand DGRD, the provincial and district agencies.

Cooperating with the Assistant for Engineering in preparingplanning, programs and budgets.

Monitoring and evaluating work quality and district performance inimplementing the annual programs.

The Regional Coordinators will be responsible to the Head of the PMU butshould refer matters first to the Loan Project Coordinator for therespective Project.

(g) Provincial Coordinators have the duties of:


.ssisting the DPUKs in planning and programming up to thepreparatIon of project budgets.

Collecting data for preparation of disbursement applications andother data required for monitoring purposes.

Giving technical advice in the field, especially concerning workquality, by communicating directly with Project Managers, Heads ofDPUKs and field consultants.

Monitoring and evaluating the implementation of work in the field.

Taking the initiative in holding coordinating meetings at provinciallevel to soive problems that may arise in implementation of theforeign-assisted rural z^r..s programs.

Provincial Coordinators will be responsible to their respective RegionalCoordinator.

-104- ANNEX8Page 6 of 7

INDOQNESIA - SECOND RURAL ROADS DEVELOPMENT PROQJEC

RELATIONSHIP OF PM IJO GOVERNMENT ORGANIZATION STRUCTUBE

BAP_ I BAGD I_

,...................,......... ......... ...............

. ~PROJIECT MANAGEMENT UNIT

GOVERNOR is

BUPATII

It SAA BIN

EAPPEDA 11 ~~BANGDA U 1DU

O8) * Technical Guidelines on Planning, Programming, Design, Tendering, Construction/Maintenance, Supervision

* Training and Technical Support

Oi) * Technical Support(AssistancelAdvisory Services on all Road Development aspects as required

ANNEX 8-105- Page 7 of 7

INDONESIA - SECOND RURAL ROADS DEVELOPMENT PROJECT

ORGaANIZATION SIRUCTURE QF PROJECT MANAGEMENT UNIT

HEAD OF PMU

I PROJECT COORDINATION,

LOAN ADMINISTRATION, MONr. ORING

IBRD ADB USAID OECF

PLANNING EQUIPMENT MANPOWERPROGRAMMING SUPPLY & DEVELOPMENT

& DESIGN OPERATIONS &TRAINING

WESTERN CENTRAL EASTERNREGIONAL REGIONAL REGIONAL

COORDINATOR COORDINATOR COORDINATOR

PROVINCIAL PROVINCIAL PROVINCIALCOORDINATORS COORDINATORS COORDINATORS


INDONESIA


Economic Evaluation

Annual Works Program Formulation

1. Experience with planning exercises carried out in the context ofprograms supported by external funding sources has shown that programs arebest formulated on an annual basis given that road conditions and otherfactors evolve over time, thereby altering relative priorities and renderingout of date rigid multi-year programs. Moreover, it has also become clearthat for road planning at district level to become firmly established andsoundly based, the quality of planning data has to be much improved and thatsuch improvement will require a sustained and long term effort. Since theeconomic rate of return (ERR) of the overall district roads program dependscritically on the composition of the annual programs in the individualdistricts, the project gives great emphasis to systematic annual programformulation.

2. District roads in Indonesia carry significant traffic volumes--typi-cally in the order of 50-200 vpd. Furthermore, because of the inter-relation-ship between these roads and the national and provincial roads and the villageroads, the overall road network in the district constitutes a key planningfactor. The planning and programming approach being developed under theproject is, therefore, based on the following elements: (i) the introductionof systematic methods of survey and analysis which will improve the qualityand consistency of the data base for district road planning and projectevaluation; (ii) the adoption of road network planning areas whereby surveyingis concentrated each year on geographically contiguous areas, which constituteup to a quarter of the road network of a distr.ct so that over a period offour to five years the whole district is covered; and (iii) the maximum use ofa traffic related evaluation method, i.e., for reliable roads and for roadswith low to moderate access constraint.

3. Furthermore, the planning approach and its implementation arrange-ments emphasize: (i) simplicity of the procedures to be followed at districtlevel and institution building to ensure that district staff in due coursewill be able to survey and evaluate projects and formulate their annual worksprogram with only limited guidance and sample vetting at the higher level;(ii) consistent planning procedures covering all parts of the district roadnetwork as the basis of the district's entire annual works program.

4. Annual works program formulation under the project essentiallycomprises a survey phase and an evaluation phase. The survey phase isdesigned to identify the initial list of candidate subprojects. Each year,the main survey components in each district's road network planning area willcover the following:


(a) road link and network identification and mapping using topographicmaps;

(b) road condition surveys sufficient to allow generalized costing ofimprovements for screening purposes;

(c) two-day traffic counts on most links;

(d) location and distribution of population;

(e) sample speed surveys;

(f) supporting surveys of unreliable roads with access constraints, andof major bridge sites and key economic activities.

5. The evaluation (screening) phase, designed to result in formulationof the annual works program, is conducted in two stges: preliminaryscreening of the candidate subprojects based on preliminary cost estimatesfollowed by final screening. Subproject evaluation for screening purposes isbased on traffic thus allowing rapid processing of a number of technicaloptions. Additional engineering will be carried out for the subprojectsscreened in the first stage, followed by detailed costing and final evaluationand formulation of the annual works program. Chart 1 shows in outline theprocedure to be adopted. The average planning lead time (from start ofplanning till start of implementation) is about 18 months. The planning phasefor the 1988/89 project year is employed to test certain survey and analyticalprocedures and to train local consultants and district staff in the trafficsurvey procedures which have already been adequately tested in the past.During the planning phase for the 1989/90 project year the district staff willbe trained to carry out most of the other types of planning surveys.Thereafter, the emphasis will shift to the transfer of skills in analyticaland evaluation procedures. Every year, by December 31, together withsubmission of the program of works for the following year, an action plan willbe submitted for training of district staff in planning procedures.

6. For most of the first annual slice of the project, because of thetime constraint an ad hoc approach (as opposed to the network planning areaapproach) was adopted for the initial identification of candidatesubprojects. It consisted of the selection of a long list of subprojects--420 road links covering some 2,900 km--by the districts according to specifiedcriteria, the most important being that the roads should be motorable vir-tually year-round and should already carry at least a moderate level of traf-fic. Thus subprojects were limited to those most amenable to standardevaluation based on brief traffic and engineering surveys to be carried out bylocal consultants. For this long list of-candidate subprojects field work wasundertaken covering traffic counts and engineering surveys. A works programby disirict was subsequently formulated by screening the subprojects.

Economic Rate of Return and Sensitivity Calculations

7. For screening of the long list a standard economic evaluation wasfollowed based on investment costs and road user savings accruing to all


categories of road users. The evaluation method used is serving as a modelfor the formulation of subsequent annual programs. The calculation procedureswere suitably streamlined to permit rapid processing of the large number ofsubprojects. The results of these calculations provided the basis for aranking of subprojects by district, for formulation of a program of works andan overall ERR calculation.

8. The subprojects to be evaluated are typically 5-10 km road links.Improvement works to be undertaken usually consist of reconstruction or majorrehabilitation with penetration macadam surfacing for sealed roads or crushedgravel for unsealed roads. Two or more improvement options defined in termsof pavement width and surface type were usually tested for each subproject.Minor improvement works were not evaluated as an alternative option. Designstandards are related to projected vehicle traffic five years after roadimprovement. Design life is ten years with appropriate provision for periodicresealing or regravelling. The average improvement cost of all viablesubprojects was US$22,500 equivalent per km. Benefit calculations includedthe following: savings in motorized and non-motorized vehicle operating costsand in passenger time costs; benefits in respect of generated traffic; forroads with low traffic levels, benefits on account of diversion from non-motorized modes to motorized vehicles; and savings in maintenance costs "with"and "without" the project.

9. Traffic counts (6 and 12 hour counts) were conducted at a minimum ofone station on all project links. Wherever possible counts were carried outat the same station on two separate days to cover both a market day and a non-market day. Adjustments were made to estimate 24 hours traffic and allow fordaily and seasonal variations in traffic. Since these were the first systema-tic counts in the project districts, there are no historical records oftraffic trends on which to base projections of future traffic. Using availa-ble data on traffic growth on main roads in combination with income elasticityof demand for transport, traffic growth was projected to be in the 3-6Zrange. Traffic generation was estimeted using an assumed price elasticity fortransport demand of approximately -1.0. On low-trafficked roads, wheretraffic levels or vehicle types are constrained by road condition, a transferfrom pedestrian and non-motorized freight modes to motorized vehicles has beenestimated using assumptions of the divertable proportion of existing traffic.

10. For motorized traffic, vehicle operating costs (voc) were derived byadjusting the voc model developed by DGH for national and provincial roads asthe voc available directly from that model are not appropriate for districtroads owing to differences in traffic composition and in road condition.Seven road categories were specified on the basis of level of roughness andaverage travel speed (Table 1). Five vehicle categories were adopted: lightvehicle (pick-up and minibus), light truck, light bus, car and motorcycle.For non-motorized traffic, seven relevant types were identified: passengerbicycke, freight bicycle, tricycle, ox-cart, horse-cart, packhorse andpikulan. For the evaluation of personal time savings a distinction is drawnbetween productive time and private time. Productive time has been calculatedon the basis of an economic wage rate of Rp 290/hour (US$0.18) in Java andRp 460/hour (US$0.28) in the Outer Islands. The value of private time isbased on half the estimated opportunity cost of unskilled labor in rural areas


i.e. Rp 75/hour (US$0.05) in West Java and Rp 120/hour (US$0.07) in the OuterIslands. Combined vehicle operating and passenger time costs are shown inTables 2-5.

11. Of the total of 420 subprojects studied, 231 or 55% have an ERR of10% or greater. The remaining projects were either found not viable, havingan ERR below 10% or had not been fully evaluated on the grounds that they werefound not to meet the initial selection criteria or because of inadequatesurvey data.

12. Sensitivity calculations were performed on a sampls of 50 subproj-ects to test the sensitivity of the ERR to changes in the basic assumptions,i.e., in respect of construction costs, base year traffic and traffic growth,road condition assessment, generated traffic, non-motorized traffic and modaldiversion, times values, maintenance cost savings, project life orimplementation performance. The outcome of the ERR and sensitivity analysespermitted the ranking of subprojects for each district and classifying themaccording to degree of risk. The cut-off ERR was set at 10% and the overallERR of all subprojects with an ERR of 10% or greater is 29%.

Special Evaluation Procedures

13. Some subprojects, such as those involving significant developmentbenefits, substantial traffic diversion or forming part of former transmigra-tion schemes, may noc be suitable for the standard evaluation method outlinedabove. These subprojects will normally be identified in the annual surveyphase given that once the network planning areas have been determined, allroad links are to be surveyed according to consistent and similar procedures.

14. Subprojects which present traffic diversion issues will require aspecial survey and evaluation approach focussing on network effects. Othersubprojects may fail to meet the staindard viability criteria based on trafficand road user savings because population or economic activity in the area ofinfluence of the road (or in the transmigration scheme as the case may be) areat too low a level. It will therefore be necessary to deLermine whether thisis the result of constraints to development, and if so, to what extent theseconstraints are related to poor road access or to other problems. The roadlinks which present problems of viability based on standard criteria and forwhich road access has been ideatified as the prime constraint to developmentwould be the subject of special studies by a centrally based team.

15. Special studies, however, cannot be expected to address satisfac-torily complex issues of transmigration (or other) scheme development otherthan those related to road access. For situations where the districtauthorities attach high priority to projects which fail to meet standardcriter'a and cannot be covered adequately by special studies (or fail to passthe teJt of special studies), two options remain: (i) to treat the areas/transmigration sites as special cases under which basic all-weather access isprovided to population centers of pre-determined minimum size based on least-cost solutions for designs appropriate to the function of the road; and (ii)treat the road in the context of wider integrated studies of all aspects ofdevelopment in the area/transmigration site in question, to be handled by


other agencies (Chart 2). Specific criteria to determine whether a subprojectqualifies for special studies, for least-cost treatment or for reference toanother agency still need to be developed. The methodologies to be employedfor the special studies and the parameters for the least cost approach, alsoneed to be elaborated. Government intends to work out these criteria andmethodologies for submission and approval by the Bank not later thanDecember 31, 1987. No subproject which fails to meet the standard criteriawill be financed under the project unless it has been evaluated and foundviable, based on the broad approach outlined above and the criteria andmethodologies still to be developed.

ANNEX 9-11l- Table 1

INDONESIA


Operating Costs - Motorized Vehicles, 1986

Light Light Light Motor-Roughness Speed vehicle truck bus Car cycle(mm/km) (km/h) -- …--- (Rp/km) - ------------------…

15,000 7.5 266.8 409.2 484.5 257.6 39.6

13,000 15.0 206.3 317.9 365.1 229.2 33.7

11,000 20.0 176.0 266.8 300.0 192.3 28.4

9,000 30.0 125.7 194.5 220.2 142.2 21.0

7,000 40.0 104.7 156.6 176.7 114.6 17.3

5,000 50.0 89.7 127.5 143.4 94.0 14.3

3,000 60.0 77.0 101.1 114.2 76.1 12.3

Source: AMPHICO/Hoff & Overgaard A/S, Preparation Document of 1987/88Program.

ANNEX 9-112- Table 2

INDONESIA


Combined Vehicle Operating and Passenger Time Costs by Road ConditionMotorized Movements - Java, 1986

(Rp/km)

Road condition: GA GG FA FG PA PG BA BG/PE BE

Motorcycle 16.5 18.3 20.1 22.4 24.7 29.2 34.0 41.2 48.2

Pick-up (pass) 100.2 109.4 118.8 132.2 146.2 171.4 198.2 243.3 292.8

Pick-up (frt) 94.2 102.7 111.3 123.6 136.2 159.4 183.2 223.3 262.8

Bus 171.9 191.8 212.3 239.2 267.7 317.1 371.2 460.1 576.5

Truck 132.0 147.1 162.2 182.0 202.0 237.7 274.0 332.9 395.3

Car/Jeep 99.2 110.1 121.2 135.9 150.9 177.8 205.4 246.7 271.5

C = Good A - Seal1' - Fair G - GravelP = Poor E = EarthB = Bad


ANNEX 9-113- Tab le 3

INDONESIA


Combined Vehicle OPerating and Passenger Time Costs by Road ConditionMotorized Movements - Outer Islands, 1986

(Rp/km)


Motorcycle 17.9 19.8 21.8 24.3 27.0 31.9 37.4 45.7 54.9

Pick-up (pass) 106.5 116.4 126.7 141.2 156.7 184.0 214.0 264.3 324.3

Pick-up (frt) 96.9 105.7 114.7 127.5 140.7 164.8 190.0 232.3 276.3

Bus 189.0 210.8 233*7 263.6 296.2 351.3 414.0 517.i 662.0

Truck 134.7 150.1 165*6 185.9 206.5 243.1 280*8 341.9 408.8

Car/Jeep 102.4 113.6 125.1 140.4 156.2 184.1 213.3 257.2 287.8

G = Good A - SealF = Fair G = GravelP = Poor E - EarthB = Bad


ANNEX 9-114-

INDONESIA


Combined Vehicle Operating and Passenger Time Costs by Road ConditionNon-motorized Movements - Java, 1986

(Rp/km)


Pedestrian 18.8 18e8 18.8 18.8 18*8 18.8 18*8 18.8 18.8

Pikulan 46.9 46.9 46.9 46.9 46.9 46.9 46.9 46.9 46.9

Bicycle

Passenger 9.9 11.3 12*2 13.2 15.9 20.4 24.1 26.8 29.6

Freight 12.4 14.1 15.3 16.5 20.2 26.0 30.8 34,2 38.1

Tricycle 35.7 41.2 44.9 48.7 59.7 78.1 92.6 103.1 115.1

Animal cart

Ox cart 87.2 87.4 87.5 87.6 87.8 88.1 91.8 104.9 116*6

Horse cart 27.9 32*2 35.1 38.0 46.6 60.9 72*3 81.3 89.7

Pack horse 47.4 47.4 47.4 47*4 47.4 47.4 47.4 54.1 63.2

G = Good A - SealF = Fair G = GravelP = Poor E = EarthB = Bad


ANNEX 9fTable 5

-115-

INDONESIA


Combined Vehicle Operating and Passenger Time Costs by Road ConditionNon-motorized Movements - Outer Islands, 1986

(Rp7km)


Pedestrian 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0 30.0

Pikulan 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0 75,0

Bicycle

Passenger 13.4 15.4 16.8 18.2 22.1 28.7 34.0 37.8 42*0

Freight 17.7 20.3 22.1 24.0 29.5 38.4 45.7 50.7 56.6

Tricycle 52.6 60*9 66.6 72.4 89.4 106.7 140.0 155.8 174.3

Animal cart

Ox cart 105.7 105.9 106.0 106.1 106.3 106o6 110.3 126.1 141.4

Horse cart 36.5 42.2 46.9 49*9 61.5 80.8 96.2 107.8 119.6

Pack horse 65.9 65.9 65.9 65.9 65.9 65*9 65.9 75.3 87.9

G = Good A= SealF = Fair G = GravelP = Poor E = EarthB = Bad


ANNEX 9-116- Chart 1

INDONESIASECOND RURAL ROADS DEVELOPMENT PROJECT

Outline of Planning Approach forAnnual Proaram Formulation

OCSGN= A?CMPI-Z

Goew C.20%_

PLAWdtd .*VZy5 4 PAMft RAU"

~~S OUTLU ~fK

NgWNN=SAN PO~~~SAPULI MASF

ANLYI AN OSAX11110

W ~ *teA

vg&" WCKwm R O

ANNEX 9-117- Chart 2

INQNSIA

SECOND RURAL ROADS DEVELOPMENT PRWO

O-utline of Planning Approach forEvaluation of Transmi graMn Scheme RQad Prjects

Seledion of planning area focused on Identified prioritytransmigration sites and adJacent district road network

Standard surveys and analysis (Reconnaissance, Mapping,Traffic, Population, Road Condition Surveys and Photos)

- +~~~~~f

Supplementary Socieconomic Survey

Projects viabRe Projects not viabdeon standar =rtd on standard criteria

Site not yet Prima fade evidence of Rads adequatefully developed constraints on development -require only

Primarliy Road and Primarilyroad other constralnts

constraints constraints other than roads

s r sb A~~~~~~~~~~~Ree to

Follow-up s Rothnerspecial~~ ~ ~ ~ suiscfea agencies

Wrs programme vsueca tY sedspeciap studiesro|rpime

I I i ~~~~~~~~rovide least-oostl l g ~~~~~~~~basic aii-wegdher |mi i § ~~~~~~~access to

- - | | ~~~~~~~~~~~population contres,

|(Rehabilltationlmnprovement) | popuiatlon mnima progamr

-118- AMN 10

INDONESIA

SECOND RUIRAL ROADS DEVELOPMENT PROJECT

Selected Documents and Data Availablein the Project File

A. General Reports and Studies on the Transport Sector

1. Land Transport Development Plan - Phase IHalcrow Fox and Associates with Biel International, Inc.April 1986

2. Indonesia Land Transport Subsector ReviewD.M. Hawes, July 1987

B. General Reports and Studies Related to the Project

1. Rural Roads Development Project, Staff Appraisal Report, IBRD, AEPTR,December 10, 1982

2. Technical Reference Developed for Indonesian Staff Responsible forLocal Roads, P. J. Leersnyder and L. H. Rogers, TransportationResearch Record

3. Project Preparation Document for IBRD Rural Roads DevelopmentProject, Phase II, September 1986, Amphico Consortium in associationwith Hoff and Overgaard, September 1986

4. Review of Experience in Kabupaten Road Construction and Maintenanceand Proposals for the Development of Improved Techniques, Colin Relf,ILO Geneva, November 1986

5. Improving Efficiency of Local Resource Based Methods for Second RuralRoads Development Project, Draft UNDP Project Document, ILO Bangkok,April 1987

6. IBRD Rural Roads II, Preparation of Programmes, Main Report, AmphicoConsortium in association with Hoff and Overgaard A/S, November 1986

7. IBRD Rural Roads II, Simplified Engineering Design Guidelines,Amphico Consoritum in association with Hoff and Overgaard A/S,November 1986

8. IBRD Rural Roads II, Design Papers and Drawing for 1987/88Rehabilitation/Improvement Program, 12 Volumes, Amphico Consortium inassociation with Hoff and Overgaard, November 1986-February 1987

9. Working Paper on Kabupaten Road Maintenance; Amphico Consortium inassociation with Hoff and Overgaard, January 1987

10. Working Paper on Aspects of Planning Methodology for Rural Roads inIndonesia and Proposed Procedures for 1988/89; PMU, July, 1986

11. IBRD Rural Roads II: Planning and Programming Component ProposedArrangements 1987/88-1990/91; PMU, February, 1987

Table 1.1

-119-

INDONESIA


Transport Sector Allocations Under National Development Plans

Repelita I Repelita II Repelita III Repelita IV1969/70- 1974/75- 1979/80- 1984/85-1973/74 1978/79 1983/84 1988/89

Roads 75.0 77.7 66.5 46.3

Land transport (railways,freight and passengerroad transport, ferries) 6.3 6.7 8.5 17.6

Sea transport (ports andshipping) 9.8 10.4 13.2 21.6

Civil aviation (airportsand aircraft) 8.9 5.2 11.8 14.5

Total 100.0 100.0 100.0 100.0

Transport as % of total planallocations 17.0 16.0 14.0 11.6

INDONESIA


Road Network Length by Island Group and by Functionaland Administrative Class, 1979/80 AND 1984/85

Road network length (km)By functional class By administrative class

Arte- Collec- Na- Provin- Muni-Island group Year rial tor Local U/C Ic tional cial District cipal Total

Sumatra 1979/80 4,911 9,561 1,224 27,955 3,642 12,021 25,664 2,324 43,6511984/85 5,859 9,635 3,224 45,212 3,692 14,926 41,217 4,095 63,930

Java /a 1979/80 2,124 5,263 924 30,631 1,576 6,694 26,459 4,213 38,9421984/85 2,379 5,539 731 45,568 1,639 7,047 40,953 4,578 54,217

Bali 1979/80 222 500 25 2,407 418 325 2,411 - 3,1541984/85 258 520 - 5,847 418 340 5,867 - 6,625

Nusatenggara /b 1979/80 521 2,998 1,601 9,251 2,249 2,861 9,261 - 14,3711984/85 1,251 2,855 1,322 15,S04 2,265 3,235 15,732 - 21,232

Kalimantan 1979/80 910 2,596 1,145 5,518 1,219 3,449 5,078 423 10,1691984/85 1,197 3,391 1,642 10,458 1,228 5,049 9,733 678 16,688

Sulawesi 1979/80 1,079 4,847 1,890 13,705 2,457 5,294 12,339 1,431 21,5211984/85 2,060 4,749 2,389 23,734 2,467 6,165 22,869 1,431 32,932

Maluku/Irian 1979/80 131 909 756 2,860 128 1,668 2,827 33 4,6561984/85 136 979 2,513 5,778 715 2,241 6,213 237 9,406

Indonesia 1979/80 9,898 26,674 7,565 92,327 11,689 32,312 84,039 8,424 136,4641984/85 13,140 27,,i68 11,821 152,401 12,424 39,003 142,584 11,019 205,030

/a Data on urban roads incomplete.7F Including East Timor.77 Unclassified. i

Source: Derived from Statistik Jalan Raya Indonesia 1985, DGH.

Table 2.2-121-

INDONESIA


Summary of the Type and Condition of Pavements 1984/85

Pavementtype/condition National Proviucial District Overall

TePaved 83 60 29 39Gravel 16 22 23 22Earth 1 18 48 39

Total 100 100 100 100

Condition /aStable 54 32 25 31Unstable 39 48 28 33Critical 7 20 47 36

Total 100 100 100 100

/a Stable indicates a roadway condition that by regular maintenance can bekept adequate for the type and volume of traffic using the road whileunstable indicates a rough pavement condition with high vehicle operatingcosts that requires frequent attention to prevent further deterioration.Critical condition indicates badly deteriorated and often impassableroads.

Source: National and Provincial Roads: Data Statistik Jalan, 1983. DistrictRoads: Statistical Yearbook of Indonesia, 1983.

-122- Table 2.3

INDONESIA


Summary of the Type and Condition of Bridges, 1984

On national On provincial On districtBridge roads roads roads

type/condition --…(X) ----------------- Total

Steel truss 19.60 10.15 5.63 12.36Steel girder 63.57 45.03 74.35 50.42Concrete slab 6.16 2.70 4.28 3.63Arch concrete 2.53 2.36 1.06 2.38Steel truss suspension 0.74 0.67 0.00 0.67Steel truss bailey 4.045 3.19 9.94 3.55Temporary bridge 2.51 35.12 2.86 26.03Others 1.36 0.79 1.88 0.96

Total 100.00 100.00 100.00 100.00

ConditionVery good 11.63 8.12 10.88 9.09Good 68.99 40.72 49.96 48.22Fair 11.75 9.22 15.08 9.99Bad 4.14 5.83 11.07 5.50Very bad 0.53 1.90 9.99 1.71Extremely bad 2.97 34.20 3.03 25.49

Total 100.00 100.00 100.00 100.00

Source: DGH, December 1985.

-123- Table 2.4

INDONESIA


Registered Motor Vehicles, 1974-84 /a

Year/ Goodsperiod Buses vehicles Cars Total

Vehicle Numbers1974 31.4 166.4 337.7 535.51975 35.9 189.5 378.0 603.41976 39.4 220.7 419.2 679.31977 46.6 268.1 471.1 785.81978 57.8 328.0 531.2 917.11979 69.5 383.6 581.5 1,034.71980 86.2 478.1 639.5 1,203.71981 112.1 590.5 722.4 1,425.11982 134.4 657.1 791.0 1,582.61983 160.3 717.9 869.9 1,748.11984/b 184.3 809.5 941.7 1,935.6

Annual Average Growth Rates (%)1974-84 19.4 17.1 10.8 13.71974-79 17.2 18.1 11.5 14.11979-82 24.6 19.6 10.8 15.21979-84 21.6 16.1 10.1 13.31982-84 17.1 11.0 9.1 10.6

/a Based on new vehicle registrations (without adequate allowance forscrapping).

/b Provisional figures.

Sources: Derived from Table VII.48, Nota Keuangan dan Rancangan AnggaranPendapstan dan Belanja Negara Tahun 1986/87, Republik Indonesia.

-124- Table 2.5

IND(?NESIA


Growth in AADT, 1972-84

No. of count- Average annual growth (%)Island group ' ing stations 1972-84 1972-79 1979-82 1982-84

Sumatra 214 15.1 19.0 11.8 6.7

Java 347 12.6 16.5 10.8 2.4

Bali 34 15.9 18.1 15.8 8.6

Nusatenggara. 38

Kalimantan 35 19.6 25.3 21.0 -0.2

Sulawesi, 68 12.9 17.4 12.0 -0.4

Other 72 13.9 15.8 14.9 6.2

Indonesia 736 13.2 17.0 11.4 3.1

Sources: Bank estimates derived from:1. Bina Marga Routine Traffic Statistics, 1972-84.2. Analysis of Traffic Growth and Traffic Forecasts for Screening

Road Betterment Projects, Highway Transport Planning Project,April 1986.

-125- Table 2.6

INDONESIA


Distribution of Traffic Count Results byRange of Motor Vehicle Traffic in 40 Project Districts, 1986

(%)

Outer islands West Java Total

Number of couiAts in sample 137 79 216

AADT /a0- 25 32.1 5.1 22.226- 50 14.6 3.8 10.651- 100 27.0 16.5 23.1101- 200 15.3 30.4 20.8201- 500 9.5 32.9 18.1501-1,000 0.7 5.1 2.3>1,000 0.7 6.3 2.8

Total 100.0 100.0 100.0

(Average AADT /a) (86) (278) (156)

/a Average annual daily traffic of motor vehicles excluding motorcycles.

Source: AMPHICO/Hoff & Overgaard A/S, Preparation Document of 198//88Program.

-126- Table 2.7

INDONESIA


Average Traffic Composition in 40 Project Districts, 1986

Outer islands West Java Total

Nonmotorized movements 77.2 64.2 69.4(Pedestriaxs only) (45.7) (37.6) (40.9)

Notorcycles 15.0 21.6 19.6

Motor vehicles 7.8 14.3 11.1Pickup 64.0 62.0 63.0Bus 8.0 4.0 7.0Truck 20.0 26.0 22.0(Heavy truck) (0.3) (0.5) (0.4)Car/jeep 8.0 8.0 8.0

Subtotal, motor vehicles 100.0 100.0 100.0

Total 100.0 100.0 100.0

(Number, of movements) (1,101) (1,948) (1,411)


-127- Table 2.8

INDONESIA


Average Traffic Composition and Road Conditionon District Roads in Java, Bali and NTB, 1986

Four-wheel Motor- Bicycles/ Pedestrian/vehicles cycles carts Pikulan Total

Fair seal: High traffic /a 27 34 18 21 100

Fair seal: Medium traffic /b 19 29 20 32 100

Fair seal: Low traffic /c 7 22 27 44 100

Poor seal 18 24 32 26 100

Unsealed (poor/bad) 7 16 16 61 100

Avera&e 16 26 23 37 100

/a >500 4-wheel ADT.

lb 200-500 4-wheel ADT.

/c <200 4-wheel ADT.

Source: AMPHICO/Hoff & Overgaard A/S, Preparation Document of 1987/88 Program.

-128-

TABLE 2.9INDONESlA Page I

Second Rural Roads Development Project

Expenditures in Highway Sector

(in Rp millions)

Actual BudgetRoad Class and Source of Funds ------- -----------

82183 93/84 04/85 95/86 86/87 87/89

A. National & Provincial Roads

A.1 Central Govt. (Bina arga) Devt. Budget

1. Rehab. & aint.: Local 3,966 6,566 22,429 22,681 19,860 33,185Foreign - - - - 12,877 77,431Sub-total 3,966 6,566 22,429 22,681 32,737 110,616

2. Support Works: Local 50,486 35,659 36,157 39,135 34,999 n.e.Foreign 1,273 5,254 962 923 7,867 69,510Sub-total 51,759 40,913 37,119 39,058 42,866 69,510

3. Bettereent: Local 196,921 185,489 111,598 120,314 46,940 87,592Foreign 94,324 75,541 106,422 55,653 94,354 151,525Sub-total 281,145 261,030 218,020 175,967 141,294 239,117

4. New w'cstruction: Local 34,194- 51,972 101,012 46,139 25,294 17,277Foreign 16,360 26,162 - 39,402 74,641 30,950Sub-total 50,554 79,034 101,012 85,541 99,935 48,227

5. Bridge Replacement: Local 29,935 15,850 19,307 23,244 7,521 12,029Foreign - - 5,045 9,460 10,115 16,564Sub-total 28,935 15,850 24,352 32,704 17,636 28,593

6. Technical Assistance: Local 9,203 9,595 4,155 5,599 2,731 19,197(Personnel Foreign 8,972 19,474 2,609 5,631 6,781 27,481

Sub-total 18,175 29,069 6,764 11,230 9,512 46,678

7. Other Assistance: Local - - 50,007 47,018 21,259 4,612(Equipment, etc.) Foreign ^ - 7,139 62,082 97,584 13,176

Sub-total - - 57,146 109,100 118,843 17,788

Subtotal Devt. Budget: Local 323,605 305,031 34',665 303,130 158,604 173,892Foreign 110,929 126,431 122,177 173,151 304,219 386,637Total 434,534 431,462 466,842 476,291 462,823 560,529

A.2 Central Govt. (Bin Harga) Routine Budget

Subtotal Routine Budget Local - 5,073 5,098 5,347 5,992

Total A Local 323,605 305,031 349,738 308,228 163,951 179,784Foreign 110,929 126,431 122,177 173,151 304,219 386,637Total 434,534 431,462 471,915 481,379 468,170 566,421

-129-

TABLE 2.9INIONESIA . Page 2


(in Rp millions)

Actul ludgetRoad Class and Souroe o Funds

82183 63184 84/85 95/86 68UN 871/8

3. Provincial Roads

1.1 Inpres DATI I - Ditetapkan

1. Rehab. & Naint.: Local - - - - - -Foreign - - - -Sub-total - - - -

2. Support Vorks: Local 27,720 28,025 28,071 34,098 2B,798 29,790Foreign - - - - - -Sub-total 27,720 28,025 28,(71 ;iv,A 28,79 29,790

S. Detteroent: Local - - - 5,157 18,703Foreign - -Sub-total - - - 5,587 18,703

4. New Construction: Local - -Foreign - - - -

Sub-total - - - - -

5. Bridge Replaceaent: Local 6,97 71,055 6,451 7,741 2,312 12,54Foreign - - - a -Sub-total 6,978 7,055 6,451 7,741 2,312 12,56

Sub-total Ditetapkan: Local 34,698 35,080 34,522 41,839 36,697 61,059Foreign - - ' ' -

Total 34,6" 35,000 34,522 41,839 36,697 61,059

3.2 Inpres DATI I - Diarakhan

t. Rehab. & Kaint,: a - - a

2. Support lorks: 52,599 52,?44 53,516 0,347 60,291 60,2913. Betterment: - - . _ a _4. Now Construction: - a - - a

5. Bridge Replatement: - - - a -

Sub-total Diarakhan: 52,5" 52,744 53,51 58,347 60,291 60,291

-130-

TABLE 2.9INDONESIA Page 3


(in Rp aillions)

Actual ludgetRoad Class and Source of Funds -------------- …

92183 83/84 84/05 B5186 86/97 87/98

8.3 Provincial Revenue - PAD I

1. Rehab. & Naint.: - -

2. Support barks:3. Bettereent: ---------------- --- negligeable aaount -----------------4. New Construction:5. Bridge Replacement: - - - -

Sub-total PAD I

8.4 Provincial Routine Budget

Total B Local 87,296 97,24 99,039 100,196 96,998 121,350----- - Foreign - - - - -

Total 87,296 87,824 89,038 100,186 96,988 121,350

C. District Roads

C.l Inpres Jalan' Local 80,100 80,100 80,100 87,469 130,000 133,526Foreign 3,478 4,318 16,435 19,265 25,333 94,737Sub-total 83,578 84,418 96,335 106,734 155,333 219,263

C.2 Inpres Kabupaten (Inpres DATI 11)

I. Haintenance: Local 10,157 13,912 35,297 42,604 43,826 44,834Foreign - - - - -

Sub-total 10,157 13,912 35,297 42,604 43,826 44,934

2. New Construction: Local 139,181 134,738 119,784 131,507 151,036 155,303Foreign - - -Sub-total 139,181 134,738 119,784 131,507 151,036 155,303

Sub-total Inpres DAT! II 149,33B 148,650 155,081 174,111 194,962 200,137

C.3 District Funds (PAD II) - … ----- negligeable aonunt ---------------

C.4 Other Funds Local 9,124 8,437 9,459 7,759 2,024 704(Equipment assistance, etc.) Foreign 27,525 11,039 5,711 3,054 23,634 -

Sub-total 37,249 19,476 15,169 10,812 25,658 704

-131-

TABLE 2.9INDONESI} P~~~~~~~~age 4


(in Rp millions)

Actual BudgetRoad Class and Source of Funds - …----- --- - --------------- --------- ----------

92183 83/84 84/85 95/86 86/87 87/88

Total C Local 239,162 237,!87 244,639 269,338 326,986 334,367Foreign 31,003 15,357 22,146 22,319 48,967 84,737Total 270,165 252,544 266,785 791,657 375,853 419,104

D. Tall Roads

D.1 Central Govt. (Bina Narga/Oevt.BudgL)1. Land Acquisition Lo;al 27,597 26,344 39,745 7,544 211 400

Foreign 10,518 22,495 36,074 28,218 46,038 114,463Sub-total 38,115 48,839 74,819 35,762 46,249 114,963

2. Other

D.2 Jasa farga Funds (Loans & Earnings)1. Routine Maintenance Local 150 160 164 163 291 3492. Periodic Maintenance Local - - - - 2,139 -

3. New Construction Local 8,294 31,078 36,937 25,935 66,810 89,005Foreign l0,518 22,495 36,074 28,218 46,038 102,061Sub-total 18,812 53,573 73,011 54,153 112,848 191,066

D.3 Jasa Plarga Routine budget Local 3,184 5,321 8,032 13,862 19,188 23,025Foreign - - - - - -

Sub-total 3,194 5,321 8,032 13,962 19,188 23,025

Total D Local 39,225 62,903 93,978 47,504 86,639 112,779----- Foreign 21,036 U,990 72,149 56,436 92,076 216,524

Total 60,261 107,893 156,026 103,940 180,715 329,303

TOTAL A + 8 + C + D Local 689,288 692,945 766,293 725,256 676,464 748,280Foreign 162,968 186,778 216,471 251,906 445,262 687,898Total 852,256 879,723 982,764 977,162 1,121,726 1,436,178

Total National & Provincial Roads 434,534 431,462 471,915 481,379 468,170 566,421Total Provincial Roads 97,296 87,824 98,038 100,186 96,988 121,350Total District Roads 270,165 252,544 266,785 291,657 375,853 419,914Total Toll Roads 8 60,261 107,893 156,026 103,940 180,71S 329,303

National & Provincial Roads as X of Total 51.01 49.0l 48.02 49.3? 41.71 39.4?Provincial Roads as 2 of Total 10.22 10.0? 9.0? 10.3? 8.61 8.42District Roads as Z of Total 31.7? 28.71 27.11 29.9? 33.5? 29.21Toll Roads as Z of Total 7.1 12.3X 15.9? 10.62 16.12 22.9?

INDONESIA


Design Standards for Dtstrict Roads and Bridges

DIRECTORATE GENERAL BINA MARGA DESIGN CRITERIA PROCEDURES OF THE PAGEFOR PREPARATtON OF RURAL to.FORCTOAT OFROA PANNNGROAD PROGRAMME PROPOSALSD OIRECTORATE OF ROAD LANNIG KASUPATEN ROADS BS KAoUPATEUt STAFF

ROAD CLASSIFICATION CLASS U A CLASS 1 9 CLASS M C

SURFACE TYPE ASPHALT SURFACE ASPHALT SEAL GRAVEL GRAVEL AVASTRAFFIC VOLUME OAT

L3000- Go50-B 2 0oo 300-50 1 sot TRAFFIC CLASS t I 4 651 I3 It 8_aI 6 s a 11.- -. -.-- -IE R It A I N FLAT TO HILLY NOUNT- FLAT TO "ILLY MOUNT- FLAT TO I.T N4WT* LAT TO ll3LY MOUN-________________________ OLLUSB AUINO ROLLING AlumN MOLLEIS ANIUS ROLLMN AINOU

TRAFFIC LANES a I a I. I+ 64 le go IS I 1 1oesgn 0 to 60 40 c 40 30 go 40 30 so 30 30DPI!. eminmum so 40 so 40 as Do 40 so 50 so s0o 3MGOASINT I 5 t0 0 S to _ le

tWtTt@ 1t% 13ta - ---_ __ - -- _____ - - - I-¢..o 6 " } bf$"^XS *-0 00 64 4-4 4- 4.3 4-8 4-3 4-S 5-5 3*- S-5

WIDTH U**Suuu 4 It 4- +0 8.5 3- 35. 5- 3-5 3-0 $5-0 5O 3-0Shbw0401.Ss's' 30 IS IS 1*5 I-S 1-0 I*S I-S1- 1-0 9 .0t0 1-0 075NIGTULD I) -"*^DIt a o1- -- n 2 a ta toROA 31 * s.st ………… --

WIOtann" G I@ 07 0T O No-n……… -o -o ol t 1 O

RIG H *S IA L IC N .I .i __ _ _ _ _ _ _ _

OF WAY ..mm..O n ai to SN

ROASI PAV weSa a % a5% 4 _ _ ____ _ _ __ _

CtAUemR s60t" 4 %-*% O %-l0 6%-r%

LMS utuaaz oau *wu ?-ONl 7-0 T-0 4N119 3_ - __ ___ USIM gauN 1 4-sN 4-UN 4.5W 4 51f

SSUA011,1 OvOtiau we. 7-oNl 7-ON 4-SN .5U tsQ oweU?I tu t 46SN 4-SN 4-SN6

I aaLgOaa.L USIU 7-ON 4-SN0 4-S N ___________ tlUWNSU?USSWA&S6 b -s 4-SNN 44M 444-9

de ._b

3R06 DIESION LOADING 70%DN s1101 .%an .0% an

Source: DGHR, February 1987

-133- TABLE 3.2

INDONESIA


Estimated Scope of Rehabilitation/Improvement Works(Nkm)

Number of Works already Extra works/adistricts designed for yet to be Estimated scope of rehab/for rehab/ 1987/88 and designed impr. works in year

Region/province improvement not yet built for 1988/89 1988/89 1989/90 1990/91

Western RegionAceh 8 206 84 290 290 290North Sumatra 5 142 108 250 250 250West Sumatra 4 35 165 200 200 200Bengkulu - - - - -Jambi - - - - - -South Sumatra 4 - 80 80 100 100

Lampung 3 - 60 60 90 90

Subtotal 24 383 497 880 930 930

Central RegionWest Java 12 559 221 780 650 650

Eastern RegionWest Kalimantan 6 '50 40 90 120 120Central Sulawesi 4 88 12 100 120 120NTT 6 - 150 150 180 180

Subtotal 16 1138 202 340 420 420

Total 53 1,080 920 2,000 2,000 2,000

/a May vary by * 20% after information on cotumitted 87/88 projects becomes available.

-134- ... TABLE 3.3

INDONESIA


Equipment to be Procured

Unit price Quantity Total costItem (Us$) (US$'000)

For Construction and MaintenanceBulldozer, 110 hp with ripper 82,500 71 5,858Motor grader, 110 hp 70,000 46 3,220Front-end wheel loader, 1.2 m3 45,000 92 4,140Self-propelled vibrating roller, 6 t, pad foot drum 45,000 78 3,510Stone crusher, 30 t/hr 163,000 23 3,749Maintenance unitFlat-top truck, 4 t }Compressor, 100 cfm }Asphalt sprayer, 200 1 1Trailer, 2 t 53,000 156 8,268Safety signs 5 1Air-driven jack hammer, etc. #Kit hand tools )Pedestrian-controlled vibrating roller I

Service-equipped pickup, 1 t, 4wd 17,500 71 1,243Water tank truck, 4,000 1 25,000 71 1,775Fuel truck, 4,000 1 25,000 71 1,775Dump truck, 5 t 30,000 305 9,150Pickup, I t, 2wd 8,000 142 1,136Motorcycle, 125 cc 1,000 234 234Spare parts, 20% 8,813

Total Equipment for Construction and Maintenance 52,870

For Workshops (including spares) 25,000 6 150

For Laboratories (including spares) 20,000 6 120

For Communications 12,500 53 660

For Labor-Intensive Pilot Schemes63-70 hp agricultural tractor 11,000 12 13250-55 hp 4x4 tractors 13,000 4 52Trailers, 2.5 t 2,500 16 40Sheepsfoot rollers (towed), 2-3 t 5,000 4 20Vibrating roller (towed), 2,5 t 12,500 6 75Vibrating roller (towed), 0.5 t 2,000 4 8Water bowser (towed), 3,000 1 5,000 4 20Tractor attachments (scraper blade, etc.) 2,000 4 8Hand tillers, 10 hp 3,000 8 24Light trailers, 0.4 t 500 12 64x4 vehicles 10,000 2 20Utility pickups 5,000 4 20Motorcycle 800 16 13Hand tools (sets) 20 1,100 22Miscellaneous equipment and spares - - 100

Total Equipment for Labor-Intensive Pilot Schemes 560

GRAND TOTAL 54,360

-135- Table 3.4

INDONESIA

SECOND RURAL ROADS DKVELOPWENT PROJECT

Cost Estimates /a

Local Foreign Total Local Foreign Total Foreign as 2Project component - (Rp billion) (- - USS mlllion)/b - of total

Civil WorksRehabilitation/improvement ofroads (6,000 km) 1 144.7 77.9 222.6 87.7 47.2 134.9 35

Periodic maintenance of roads 23.1 13.5 36.6 14.0 8.2 22.2 37Routine maintenance of roads 35.0 15.0 50.0 21.2 9.1 30.3 30Workshops 0.5 0.2 0.7 0.3 0.1 0.4 25

Subtotal 203.3 106.6 309.9 123.2 64.6 187.8 34

EquipmwetFor maintenance/construction,workshops, laboratories andcommanications 10.9 77.9 88.8 6.6 47.2 53.8 88

For labor-intensive pilot scheme 0.1 0.9 1.0 0.1 0.5 0.6 90

Subtotal 11.0 78.8 89.8 6.7 47.7 54.4 88

Consultancy ServicesFor DPUKs 20.0 18.3 38.3 12.1 11.1 23.2 48for PMU 6.9 7.0 13.9 4.2 4.2 8.4 50For training 0.9 0.9 1.8 0.5 0.6 1.1 SOFor labor-intensive pilot scheme 1.5 1.1 2.6 0.9 0.7 1.6 45Studies of contractors and

eevelopment schemes roads 0.3 0.8 1.1 0.2 0.5 0.7 75

Subtotal 29.6 28.1 57.7 17.9 17.1 35.0 49

TrainingIn-country 2.1 1.7 3.8 1.3 1.0 2.3 45Overseas - 2.0 2.0 - 1.2 1.2 100

Subtotal 2.1 3.7 5.8 1.3 2.2 3.5 63

Total Base Cost 246.0 217.2 463.2 149.1 131.6 280.7 47

ContingenciesPhvsical /c 23.6 13.9 37.5 14.3 8.4 22.7 37Price /d 28.4 20.4 48.8 17.2 12.4 29.6 42

Subtotal 52.0 34.3 86.3 31.5 20.8 52.3 40

Total Project Cost /e 298.0 251.5 549.5 180.6 152.4 333.0 46

/a Prices as of September 1987./b Fxchange rate: US$1.00 - Rp 1,650.7C Ten percent on civil works and consultancy services, 1S on training.7T On base costs and physical contingencies. Estimates of price increases carried out at

following rates:1987 1988 1989 1990 1991

Foreign 3.02 1.02 1.09 1.02 3.52Local 10.0: 5.02 3.52 3.S 3.52

/e Includes US$11.4 million of identifiable taxes and duties on civil works, US$5.9 millionon procurement of equipment and US$145 million taxes on the services of consultants.

Source: Mission estimates, September 1987*

Table 3.5-136-

INDONESIA


Disbursement Schedule /a(US$ million)

IBRD fiscal year Disbursements Estimated cumulative disbursementsand semester by Semester US$ million X

1988

December 31, 1987 0.0 0.0 0

June 30, 1988 2.0 2.0 1

1989

December 31, 1988 33.0 35.0 13

June 30, 1989 40.0 75.0 39

1990

December 31, 1989 35.0 110.0 58

June 30, 1990 20.0 130.0 68

1991

December 31, 1990 20.0 150.0 79

June 30, 1991 20.0 170.0 89

1992

December 31, 1991 20.0 190.0 100

/a Assumes loan effectiveness by January 31, 1988.

Source: Mission estimates, September 1987. .


PRESENT ORGANIZATION OF -

DIRECTORATE GENERAL OF REGIONAL DEVELOIbMENT WDORD)

Cenura GovernmentMnliter of

11ome Affairs

g [urotary Tnspe1ttGeneral General

Director Ganera| Dlrector General Derector General Director Genoral of iretor Sonerd of enoel Amin'stration

Politicd AffaiIr of Lends Viloage Dwelopment Regiond Devlopment end Reglond Autawy IP U 0 Di

ftli"cal Affdre~~~PlnnngB orig ADi,ectr ofDrecto oenord

District ospmnSocrDlretoe Development Secrcetriae D nelo poent Stio

____________nt____ Implementation __l

i¢ Provincial r Inter I0ctor r Urban Critical Sh Inter SeCtorol RegionalDevelopment Dovelopeont Development Backward Area Development Developmont

Implementation I I DovelozEm__ _ I Plonnin nfl Institutions

Regional Environmontol Residential General Devlopment Evaluation BDevebpment 'Development | Development Development Potential B DevelopmentSOURCE:01 EAfFAIRSSTRUCTION No. sResoures Implementation J

SOURCE : NITERF OF HOME AFFAIRS INSTRUCTION No. 72 of 1981


FUTURE ORGAMZArIDN OFIRECTORATE GENERAL OF REGNAL DEVELOPMENT (DGRD)

entralt si

Homo Affairs

Hierv L I -- bscomaet, I

Dlroc1ar General wIroeter General | feeor oGenal Oirectar Gema of Otretor GoRn t oGomel AdelstetlaoPof Scal afehe of Lands Villtge D.wloon eni Regional O0ebm,nt Ma Reglonal Aneemy I P U O D)

Polita t _htae m

|SPlbr|tarElato So toe Al|rel |de

Directo Dlroelte of Director of £=K ofhneld D _t olool pme" Urbas "Mt Dx .kmPbmlrbe a Pr" At tain DeAf * dwnl Me Mad

s oerbtwt | < c rt rl5t | ratsohsto |4car torlto |

Oow* moflt r LDOv t Plonnio Corperatle Critical Areas Planning Petatlel i llcatlos Envltom n IrtL lntrattlrctur Aailseb pL Ramom a Urbona Urban "Ntoral Dove"ont

IPlaning Plannin || Indentlflctb oer Areas | Envirnment |nfrostruor | Eawlron"mnt Admlnltration |SOURCE: MSWTER OF HOME ASAInS OgECOE No. 22 o"eee

- -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-

ORaNM OF THEB¢CTOTS LOEA OF H n"AY (DON)

~~sg: ~~~~~k. aFm. 7momoam

am" ~ ~ ~ "

ammen : go", APOL Off~~~~~~~~~~~

IDONESIASECOND RLtAIA ROAD$ DEVELOPMENT PROJECT

ORGANIZATION OF THEPROVINCIAL PUC WORKS AGENCY CD PUP)36 ll, RSAU.AM, NILU_, LAd&S WST NAMaNh,ClETRAL KAIhIAt a,OlrTH SULESI, CENTRAL SUAWS,OUTEST OffSJLSNU TOMRMA TM,AMM OM JMA

I~~~~~~~~~

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PERSONNEL f4NANCE LIEAL Sfi ENALAFFAIRS A FFAIRS

.~~ ~ ~~~~~~~~ ~~~ . 1 I . WPEUSPLANNiNO IRRIOATION ROAD$S JUILS I" s- I 0

IRRIOATION IROAD mRRIGATION PROSRAAMMU IRRIOATION 1CONSTRUCTION RIOIONAL 1 £ @WPMENT

____ ____- ____ ____J .SUPPLIES

ROAS 12 RIVERS 3980£ OSUILDINOU ROAOS_ P ROG RAN ^ U _ tSWA MPS CONSTRUCTION HOUSING S SUPPLIES

BUILDINGS OPERATIONS ROAD 1 1PRO*RAMMLj MAINTENNCE MAINTENANCt SANITATION j WORKtSHPS |

DESION 'DESIO *|1

ROAD INVENTORY rt

SNICe: NISR OF HomE AFFAIRS INSTRUCTIONOS. 14 Of 06 IrMD 20 OCTOBER 1956.

.101mb

9 A-141- Chart 2.4

=NO RUAML ROM= OCVELOPMENT PROCToAsANrA10N OF TlH

VOCIAL PULC WOS AMENCY (OPUP)m4 san%ir 9SXMn10 *AgrWM AM WMSA.WrX

1i3

PLAuiVN Jj RRIGATION j[ ROADS .IC ,,

U1RISA1.bON ~~~~~ROAO TOWN AND OITO

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HEAD OF DPUK |

* !OADS I SUILOING I Is SANITATION II REGULATONS J L L.PLANNANGAND SUPL

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DESIGN AND A

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,

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IBRD 20238.I26 130m 136

PHILIPPINES I N D O N E S I A,-~ SECOND RURAL ROAD DEVELOPMENT PROJECT

LM-- EXM PROJECT DISTRICTS

DISTRICTS INCLUDED IN THE FIRST RUkL,0 1 5 Z ROADS DEVELOPMENT PROJECT (LOAN 2093 IND)

,0 - DISTRICT BOUNDARIES

/ -'-- PROVINCE BOUNDARIES* --- INTERNATIONAL BOUNDARIES

e %19 > HALMAHERA

X Kf~~~P(JLUNAN ( ~SERA4M`1

SURU o I JA

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- - S~~~~~~~~~~~~~~~~~~~~~~~~e

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}~ ~~~KPV TIrMOR 10 2 3040S

SUMBA KILOMETERS

120 13 1360JUNE 1987

World Bank Document · ITB - Institute of Technology, Bandung P.T. Jasa Marga - Indonesian Toll...

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Transcript of World Bank Document · ITB - Institute of Technology, Bandung P.T. Jasa Marga - Indonesian Toll...