ausaid document

Facility Review and Planning Document: February 2010

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FACILITY REVIEW AND PLANNING DOCUMENT (FRPD)

February 2010


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INDONESIA INFRASTRUCTURE INITIATIVE

FACILITY REVIEW AND PLANNING DOCUMENT (FRPD) February 2010


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TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 1 2. WORK PLAN DEVELOPMENT 3

2.1 Introduction 3 2.2 Water and Sanitation (Watsan) 4

2.2.1 GOI water supply incentives grant (Water Hibah) 5 2.2.2 Sanitation Hibah 5 2.2.3 Wastewater investment plans 5 2.2.4 Penyediaan Air Minum dan Sanitasi Berbasis Masyarakat - PAMSIMAS 6 2.2.5 Other water and sanitation programming 6

2.3 Transport 7 2.3.1 Sea transport 8 2.3.2 Railways 8 2.3.3 Urban transport 8 2.3.4 Air transport 9 2.3.5 Roads infrastructure 9

2.4 Infrastructure Policy and Investment Program 10 2.4.1 PPP institutional and transaction support 10 2.4.2 Other infrastructure financing 11 2.4.3 PSO policy 11 2.4.4 Infrastructure policy and planning 12 2.4.5 Telecommunications 12 2.4.6 Risk based methodology in internal audit function 13

3. REVIEW OF PROGRESS 14 3.1 Introduction 14 3.2 Activity development and approvals 14 3.3 Activity expenditure 17 3.4 Expenditure projections to September 2010 19 3.5 Development of institutional relationships 20 3.6 Progress in achieving IndII’s objectives 21

4. MANAGEMENT SYSTEMS 23 4.1 Communications 23

4.1.1 Website 23 4.1.2 Informational materials 23 4.1.3 E-mail blasts 23 4.1.4 Quarterly journal 24 4.1.5 End-of-year event 24 4.1.6 Collateral materials 24 4.1.7 Additional plans for 2010 24

4.2 Monitoring and evaluation 24 4.3 Risk management/ Gender/ Environment 25 4.4 Administration and management 25

4.4.1 Staffing 25 4.4.2 Office expansion 25 4.4.3 Management Information System (MIS) 26

Table 1: IndII structure and MC responsibilities 4 Table 2: Activity development, January 2009 – January 2010 14 Table 3: Approved activity budgets by counterpart agency 16 Table 4: Approved activity budgets by theme 16 Table 5: Approved activity budgets by component 17 Table 6: Activity approved budgets and expenditure 17

Figure 1: Cumulative Technical Team approvals 15 Figure 2: Cumulative AusAID approvals 15 Figure 3: Imprest account cumulative expenditure 18 Figure 4: Imprest account monthly expenditure 19 Figure 5: Project (cumulative) commitment and expenditure to September 2010 19

Box 1: Key elements of the forward work plan period - Watsan 4 Box 2: Key elements of the forward work plan period - Transport 7 Box 3: Key elements of the forward work plan period – Policy & Investment 10

ANNEXE 1: IndII organisational chart 27 ANNEXE 2: Estimated Expenditure 2009-2010(accrual basis) 28


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ACRONYMS

ADB Asian Development Bank AIPCS Australia Indonesia Partnership Country Strategy AMPL Air Minum dan Penyehatan Lingkungan (Water supply and environmental sanitation) Working Group ATM Air Traffic Management AUD Australian Dollars (also $A) AusAID Australian Agency for International Development BP3D Badan Perencanaan Pengendalian Pembangunan Daerah Bappeda Badan Perencanaan Pembangunan Daerah Bappenas Badan Perencanaan dan Pembangunan Nasional (National Development Planning Agency) BLUD Badan layanan umum daerah BRT Bus Rapid Transport BUMN Badan Usaha Milik Negara (State Owned Enterprise) CMEA Coordinating Ministry of Economic Affairs CPG Commonwealth Procurement Guidelines DED Detailed Engineering Design DG Directorate General DGCA Directorate General of Civil Aviation DGH Directorate General of Highways (Bina Marga) DGHS Directorate General for Human Settlements (Cipta Karya) DGLT Directorate General of Land Transport DGPT Directorate General of Post and Telecommunications DGST Directorate General of Sea Transport DGWSD Directorate General for Water Supply Development DPU Departemen Pekerjaan Umum (Department of Public Works) EIA Environmental Impact Assessment EINRIP Eastern Indonesia National Roads Improvement Project FCPS Fraud and Corruption Prevention Strategy FMO Financial Manual of Operations FY (Australian) Fiscal Year - i.e. July to June GOA Government of Australia GOI Government of the Republic of Indonesia GIS Geographical Information System IASTP Indonesia Australia Specialised Training Project IEG Infrastructure Enhancement Grant IEI Immediate and Emerging Issues IFGI Infrastructure for Growth Initiative IIC Indonesian Infrastructure Community IIFF Indonesia Infrastructure Financing Facility IISTF Indonesia Infrastructure Support Trust Fund (World Bank-managed IndII Trust Fund) IndII Indonesia Infrastructure Initiative IndII IA Indonesia Infrastructure Initiative Imprest Account IPM Infrastructure Project Management IRSDP Infrastructure Reform Sector Development Project ISSDP Indonesia Sanitation Sector Development Program JAATS Jakarta Automated Air Traffic Control System JBIC Japan Bank for International Cooperation JICA Japan International Cooperation Agency KKPPI Komite Kebijakan Percepatan Penyediaan Infrastructure


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M&E Monitoring and Evaluation MDB Multilateral Development Bank MDG Millennium Development Goal(s) MOF Ministry of Finance MOT Ministry of Transport MPW Ministry of Public Works MSOE Ministry of State Owned Enterprises MTDP Medium Term Development Plan MTEF Medium Term Expenditure Framework NGO Non-Government Organisation NTB Nusa Tenggara Barat NTT Nusa Tenggara Timur P&R Policy and Regulatory PAMSIMAS Penyediaan Air Minum dan Sanitasi Berbasis Masyarakat PDAM Perusahaan Daerah Air Minum (District Water Supply Company) PDD Project Design Document PELNI Palayaran Nasional Indonesia (National Shipping Line) PERPAMSI Persatuan Perusahaan Air Minum di Seluruh Indonesia (Ind. Assn of Drinking Water Co.) PLN Perusahaan Listrik Negara (State Electricity Authority) PMK Peraturan Menteri Keuangan (Minister for Finance Regulations) PNPM Program Nasional Pemberdayaan Masyarakat (PNPM Mandiri) PPP Public Private Partnership PSO Public Service Obligation PSOs Pioneer Shipping Services PT-KAI P.T. Kereta Api Indonesia (Indonesia National Railway) RMP Railways Master Plan RSA Road Safety Audit RSU Road Safety Unit SC Social Contract SPS Strategic Partnership Support STT Sanitation Technical Team TA Technical Assistance ToR Terms of Reference QAE Quality at entry USAID United States Agency for International Development WASAP Water and Sanitation Sector Program (Trust Fund through EKN managed by WB) WASPOLA Water and Sanitation Policy Formulation and Action Planning Project Watsan Water and Sanitation WB World Bank WSI Water and Sanitation Initiative WSLIC Water and Sanitation for Low Income Communities WSP Water and Sanitation Program (through World Bank) WWTP Wastewater Treatment Plant


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1. EXECUTIVE SUMMARY

This Facility Review and Planning Document (FRPD) reviews the period from August 2009 to January 2010 and presents a forward work plan for the period February to July 2010. The Managing Contractor seeks the Board’s endorsement of the proposed forward strategy and work plan.

During the period under review, IndII has made significant progress in the development of new activities with several new sector agencies and has seen the number of activities commenced and completed and the rate of financial commitment and expenditure increase significantly. Whilst there still remain considerable challenges ahead, particularly over the coming six months, IndII is now well positioned to achieve its broader objectives as envisaged by GOI and GOA.

However, IndII is now approaching a significant constraint imposed by the 30 June 2011 end date of the current phase of IndII. Over the coming months this constraint will increasingly influence the ability of the IndII facility to enter into long-term activity commitments that extend beyond this date, unless strategic decisions about the future of the Facility are made by GOA and GOI. This is particularly the case for the implementation of the Infrastructure Enhancement Grants (IEG) program.

In summary, the Facility has:

expanded the number of new activities commenced from 26 to 45;

increased the number of activities completed from 4 to 12;

increased the value of Technical Team approved activities from $A11.26 million to $A18.2 million; and

diversified the range of partner agencies with which IndII is working.

The most significant change relates to the development of the Water and Sanitation Initiative (WSI), a major new program that builds upon and consolidates IndII’s focus on the Watsan sector. This has led to an increase in the number of technical and program management staff in IndII and to a restructuring of the IndII facility. The new structure includes two sector-specific components (Watsan and Transport) and a third component covering a broad range of cross-cutting themes and other sector activities (Infrastructure Policy & Investment).

During the period under review, the transport program has developed rapidly and now includes major port and rail master planning activities; a bus rapid transit (BRT) activity for local government; support for the development of the air navigation blueprint; and the development of a policy advisory unit at the Ministry of Transport (MOT). During the same period an advisory office has been established within Bina Marga, and it is expected that the range of activity support in this agency will continue to grow under the management of IndII’s lead advisor.

Significant new public private partnership (PPP) work has also begun with the development of bankable business cases to support the Umbulan Spring project and the proposed Jatiluhur-Jakarta water pipeline project. Other PPPs in the water may also be considered in 2010.

The strength of existing institutional relationships has continued to develop throughout 2009 and new relationships have been initiated at both the national and provincial levels. The strongest and highly productive relationship exists with the DG Cipta Karya, where a range of major Watsan activities are underway. Newly established relationships are also in place with the provincial governments of Papua, West Papua, NTT/NTB and West Sulawesi, where a range of new activities have either commenced or are in the final stages of design.

IndII has begun to publish its successes and to share activity information through a range of communications materials including an enhanced IndII website, the production of Activity Updates and Activity Descriptions, “email blasts” to stakeholders, and the highly successful launch of IndII’s quarterly journal Prakasa.

The Facility has gathered significant momentum and is now well positioned to consolidate the hard work of the past year and is starting to achieve strongly against the program’s stated objectives. The program is now tangibly meeting the high priority needs of GOI partner agencies and there is


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emerging a growing awareness of, and demand for, the support that IndII can provide. IndII is increasingly being seen as playing a major role with GOI through its rapid response capability, the high calibre of technical assistance being provided, and as a catalyst for the establishment of strong productive partnerships.

What is next for IndII?

Highlights of the next period’s work plan can be summarised as follows:

Watsan

Implementation commencement of the Water Hibah and Sanitation Hibah, with the signing of various grant agreements (NPPH), as well as the implementation of the baseline and socio-economic surveys.

Selection of the focus cities and the consultant(s) followed by the initial stages of implementation for the city master plans.

Identification, short-listing and selection of IEG-funded local wastewater and solid waste projects.

Transport

Completion of the national rail and port master plans. Establishment of a policy advisory unit at the office of the Vice-Minister of Transport to assist in

higher-level coordination, traction and integration of IndII’s various assistance programs at the Ministry.

Deepening and broadening of the engagement with DGH with a range of new activities under the MTEF and performance based budgeting framework.

Short-listing and selection of candidate cities for IEG and technical assistance for their BRT systems.

Procurement of consultants and initiation of work on the national blueprint for air navigation.

Policy & Investment

Advancement of the Umbulan Springs PP project, evaluation of the EOI proposals, short-listing of potential bidders as well as development and distribution of the RFT and draft contract.

Finalise review and develop SOPs (standard operating procedures) and other policy recommendations for the MoF’s Hibah program for infrastructure.

Development of a general policy framework (plus draft regulations) for the delivery of PSOs through contracts with private enterprises.


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2. WORK PLAN DEVELOPMENT

Recommendations for IndII Board

IndII recommends that the Board endorse this work plan for the period February to July 2010.

Specifically, IndII seeks the Board’s endorsement of:

(a) the proposed forward strategy and work plan;

(b) the continued development of systems and procedures;

(c) IndII’s continuing direct engagement with PT KAI.

2.1 Introduction

This chapter of the FRPD reviews recent program development and articulates forward strategy for the IndII facility over the period February 2010 to July 2010. It builds upon and extends previous FRPDs and work plans, as the facility’s fundamental approach to program design and development remains unchanged. That being said, there have been some important developments, and the previous work plan period has been a time of considerable change for the IndII facility.

The most significant change relates to the design and development of the Government of Australia’s $A60.5 million Water and Sanitation Initiative (WSI). These WSI funds are to be allocated to a portfolio of Watsan-related activities and investments, including the Water Hibah program, a Government of Indonesia (GOI) initiative which will provide grants to sub-national governments as a stimulus for local investment in the development of PDAM water supply services (see below). Other key elements, also discussed below, include a similar Hibah facility for wastewater; technical support for the city sanitation investment plans; and expanding support for an existing rural water and sanitation program, known as PAMSIMAS.

Due to the synergies with the IndII facility’s existing support to the Watsan sector, it was agreed that IndII would assist AusAID in the implementation of this WSI program. As noted in the previous FRPD, the expansion of IndII to include WSI funding, and the intent to manage this funding as part of a broader IndII Watsan program, provided the opportunity for the facility’s structure and components to be redefined. In the last work plan period, IndII was re-configured into two sector specific components (Watsan and Transport); as well as a third component covering a broad range of cross-cutting themes as well as other sectoral activities (known as Policy and Investment). The work plan and review elements of this FRPD (Chapter 3) are presented according to these sectoral components. Also, as discussed in greater detail in Chapter 4, IndII’s staff has been expanded to assist with the implementation of the WSI and will also be organised according to these three vertical components.

Horizontally it is also possible to categorise IndII activities according to the original component titles IPM (Infrastructure Program Management), P&R (Policy and Regulation) and IEGs (Infrastructure Enhancement Grants). These categories cut across the sectoral components in a horizontal manner. In this way, a transport activity for example, could be regarded as IPM, P&R and IEG - or a combination of the three.

The table below provides a simple summary of these important changes to the IndII facility. It shows that there are now two sources of funds for IndII-implemented activities: the original Infrastructure for Growth Initiative (IFGI) funds and WSI funds. The IndII managing contractor (MC) manages the funds sourced from IFGI ($A40 million) but only approximately $A7-8 million of a total $A60.5 million of the WSI funds.

For the IFGI-funded activities, the IndII managing contractor is responsible for activity identification and preparation, procurement, implementation management as well as monitoring and evaluation.


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For the WSI-funded activities, the IndII MC responsibilities vary with each of the components. The PAMSIMAS component will involve minimal input from IndII, limited mainly to assisting AusAID with implementation coordination. For the Water and Sanitation Hibah, the IndII MC will assist with implementation; M&E and verification support for AusAID; but will not manage the Hibah funds, except for the funds required for associated technical assistance. For the sewerage master plans, IndII will be involved in the full range of activities including activity identification and preparation, procurement, M&E - and will manage the activity funds

Table 1: IndII structure and MC responsibilities

Component / theme Sector

Watsan Transport Policy & Investment

IndII – IFGI funded

Infrastructure Project Management

Policy & Regulation

Infrastructure Enhancement Grants

Activity Identification and preparation, procurement, management and M&E**

WSI – WSI funded Watsan

PAMSIMAS Support to AusAID with TF amendment, & implementation coordination

Urban Water and Sanitation – Hibah Implementation, M&E, and verification support for AusAID

Sewerage Master Plans (five cities) Activity Identification and preparation, procurement, management and M&E**

** Funds managed by IndII MC

Another notable change has been the rapid development of the transport program. IndII’s previous FRPD indicated that its transport programming was limited to only a few road-related activities at the MPW. Since then, transport programming has expanded to include major port and rail master planning efforts; a bus rapid transit (BRT) assistance program for local government; assistance with the development of the air navigation blueprint; and the development of a policy advisory unit at the office of the Vice-Minister at the Ministry of Transport (MOT).

Despite these important changes, IndII’s work plan continues to be shaped by the directions and guidance provided by the Advisory Board. IndII seeks a sensible balance between demand responsiveness and strategic focus, and between assisting strong and weak agencies. Continuing efforts are also being made to arrive at an appropriate mix of national and sub-national activities (as directed also by the Board). The proposed work plan is designed to respond to these directions as well as to reflect the Government of Indonesia’s policy reform and institutional development priorities - as defined in various laws, regulations and policy statements.

2.2 Water and Sanitation (Watsan)

Box 1: Key elements of the forward work plan period - Watsan

Implementation commencement of the Water Hibah and Sanitation Hibah, with the signing of various grant agreements (NPPH), as well as the implementation of the baseline and socio-economic surveys.

Selection of the focus cities and consultant(s) followed by the initial stages of implementation for the (local government) city master plans.

Identification, short-listing and selection of IEG-funded local government wastewater and solid waste projects.

In general, far greater engagement with local governments, through a range of programming including the Water and Sanitation Hibah, the wastewater IEGs, the city sanitation master planning, the Nusa Tenggara water governance activity, the design of the solid waste facility in South Sulawesi, amongst others

The water and sanitation sector represents a significant portion of the overall IndII program of collaboration with the GOI. The centrepiece of the program will be the Water and Sanitation Initiative (WSI) delivered through the Water Hibah, Pamsimas, the Sanitation Hibah, and the preparation of investment plans for wastewater development in five cities. In addition to the WSI,


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IndII is considering providing support to selected local governments for development of water, sanitation and municipal solid waste programs through the IndII Infrastructure Enhancement Grants, as well as through a number of smaller initiatives to promote water supply and sanitation outcomes.

2.2.1 GOI water supply incentives grant (Water Hibah)

The Water Hibah is an initiative to encourage local governments (LGs) to invest in the water systems owned and operated by local government water companies (PDAMs). It is part of a broader GOI program for reform and restructuring of the water sector, covering tariff setting, credit finance to PDAMs, and debt restructuring - in addition to the Hibah incentive program. The proposed WSI component will channel $A20 million using the PMK168/169 grants channelling mechanism to approximately 20 LGs that self-select and satisfy key eligibility requirements. The grant will be paid after each participating LG and PDAM has built the extension to the water system and has installed new water connections, to be verified by independent survey. This component should result in approximately 60,000 new service connections. The Water Hibah program was approved by the AusAID Peer Review process on 23 November 2009.

The Water Hibah will require “on-granting” agreements between the Ministry of Finance (MOF) and the participating LGs. The format for these “on-granting” agreements has been prepared by IndII as part of the assistance to GOI. Approximately 20 local governments have been accepted to participate in the Water Hibah program.

In the coming work plan period, the primary focus will be on:

ensuring the selected LGs sign up to the “on-granting” agreements, including a requirement to invest funds into the PDAM;

engaging consultants to carry out baseline and socio-economic surveys of the designated water system expansion areas for each LG;

commencing implementation of the Water Hibah program; and

engaging consultants to carry out independent verification surveys, required for payment of the grant.

2.2.2 Sanitation Hibah

The WSI is applying the output-based grant mechanism of the Water Hibah to a pioneering (pilot) program to expand sewerage connections in the existing sewer systems belonging to the local (city) governments of Banjarmasin and Surakarta. The mechanism for the implementation of the Sanitation Hibah is essentially the same as that of the Water Hibah, requiring the relevant LG to invest in the wastewater company to achieve the service extension. The grant is paid after service extensions are verified by the same independent verification consultant as the Water Hibah. The Sanitation Hibah provides a lower level of grant for localised communal sewer schemes that will connect to the main sewer at some future date. A total of $A5 million is allocated for the WSI Sanitation Hibah, which is expected to yield approximately 10,000 new house connections.

In the coming work plan period, the primary focus will follow that of the Water Hibah, i.e. signing “on-granting” agreements with participating LGs; baseline surveys; implementation; and subsequent verification.

2.2.3 Wastewater investment plans

This component of the Water and Sanitation Initiative supports the preparation of master plans and investment proposals for sewerage systems in five cities. Currently only 11 cities in Indonesia have limited functioning sewer systems. This component will provide master plans and investment programs for sewerage in the selected five cities. A significant part of the component is the selection process for the cities, which will require commitments from the city governments to implement the investment programs, using funding principles established under the Ministry of Finance on-granting regulations.


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Over the past work plan period, IndII consultants have been scoping / designing and socialising the program (including preparation of tender documents) as well as prioritising and short-listing candidate LGs. In the coming work plan period, the primary focus will be on completing the city selection process, consultant selection and procurement as well as the initiation of the master plan development process.

2.2.4 Penyediaan Air Minum dan Sanitasi Berbasis Masyarakat - PAMSIMAS

AusAID has supported rural water and sanitation development through the Water and Sanitation for Low Income Communities (WSLIC) initiative; the third stage of this assistance is the PAMSIMAS project. WSI will provide up to $A20 million support to WSLIC for the provision of water and sanitation facilities to approximately 500 villages. An additional $A2.5 million will be provided to support technical assistance to the executing agency and for implementation management. Funds for PAMSIMAS will be channelled to the project through a World Bank (WB) Trust Fund.

In the coming work plan period, the primary focus will be on confirmation of the districts and villages to participate in the WSI-funded PAMSIMAS component; amending the WB Trust Fund to accommodate the WSI funds; and amending the LG budget provisions for FY 2010 to use grant funds for the selected districts.

2.2.5 Other water and sanitation programming

Complementing the WSI will be a range of other water and sanitation initiatives funded through IndII; these include:

(a) Implementation of Infrastructure Enhancement Grants (IEG) using outputs based and GOI grants mechanisms

The development by GOI of a flexible grant mechanism under PMK 168/169 has created opportunities for channelling aid directly to local governments using GOI funding mechanisms and procedures. IndII is in the process of assisting selected local governments with proposals for the development of sanitation and solid waste projects that will qualify for IndII IEG funding, using the GOI grant mechanism. The grants are contingent upon the local governments achieving outputs which are contained in the on-granting agreement.

The projects that IndII has identified at this stage include the development of a solid waste disposal site in Kupang, and the extension of sewerage connections in Denpasar, Bandung, Cirebon, and Jakarta. The criteria for final selection of projects for IEGs include the readiness of the local government to invest in the project; the availability of budget funds in FY 2010 for the proposed project; and evidence of positive social benefits to poor households. IndII has canvassed a number of local governments and initial indications point to a high level of interest by local government. The application of the IEG in this way is an effective stimulus and reward mechanism for initiating local government investment in infrastructure.

In the next work plan period, candidate wastewater and solid waste projects will be shortlisted, prioritised and then selected for IEG assistance. IndII expects two on-granting agreements to be signed by March 2010 and then a further two by May, with implementation to take place in the second half of the year.

(b) An ongoing program of assistance for 20 higher-performing PDAMs

Higher-performing PDAMs are considered to be those that are able to satisfy certain technical and financial criteria to improve their access to commercial borrowing. Activities will focus on business plan development, reporting, pricing and corporate governance. It is expected that this program will link directly with the WSI Hibah program by identifying / providing candidate PDAMs/LGs that are able to meet the Hibah program requirements. Note that this program is part of the Policy and Investment program, but is included in this section of the FRPD report due to its strong links to other Watsan programming.


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(b) Nusa Tenggara water supply governance project

This is a project to assist LGs and PDAMs at the lower end of the performance / capability scale. The project is designed as a pilot for better governance of the water sector by applying social contract (SC) principles between the local government, the PDAM, and the community to achieve sustainable improvements to water services. About four PDAMs/LGs will be selected to participate in the project which will mobilise consultants in February 2010 and will be implemented in two stages: the first stage being the selection of LG/PDAMs and signing of the Social Contracts.

(d) Detailed engineering design (DED) for the Mamminasata Solid Waste Plant:

IndII has engaged consultants to prepare the detailed design of the regional solid waste disposal site in South Sulawesi serving the local governments of Makassar, Gowa, Maros, and Takalar, under the coordination of the provincial government. Finalisation of this design will, in turn, enable the GOI to implement the project through a JICA loan scheduled to be effective in June 2010. Consultants for this assignment have been selected and mobilised on 26 January 2010. The design will include preparation of tender documents which will conform to JICA procurement rules and guidelines.

(e) Losari Beach environmental impact assessment:

The Losari Beach Waste Water Treatment Plant (WWTP) will treat 10,000m3 of sewage (from the equivalent of 20,000 households) by the year 2028. The selected six-hectare site is located within three kilometres of the main business and tourist area of Makassar on undeveloped land near the coastal area. The proposed treatment process involves aerated lagoons. In accordance with Indonesian environmental legislation, a full environmental impact assessment (EIA) is required before the project can be approved and proceed. Funding for the construction of the WWTP is expected to be obtained from the ADB, and will be part of a larger project which includes the construction of sewers, pumping stations and pumped transmission pipes. The EIA is to be carried out in two stages: the first being an initial assessment to determine the important environmental issues, and the second involves detailed field work and analysis to determine the environmental impacts and mitigation measures and monitoring requirements. The first stage has been completed by the IndII consultant while the second stage will be undertaken in 2010. This stage will include public meetings and field studies on the coastal waters, as well as community consultations.

2.3 Transport

Box 2: Key elements of the forward work plan period - Transport

Completion of the national rail and port master plans.

Establishment of a policy advisory unit at the office of the Vice-Minister of Transport to assist in higher-level coordination, traction and integration of IndII’s various assistance programs at the Ministry.

Deepening and broadening of the engagement with DGH with a range of new activities under the MTEF and performance-based budgeting framework.

Short-listing and selection of candidate cities for IEG and technical assistance for their BRT systems.

Procurement of consultants and initiation of work on the national blueprint for air navigation.

In general, increasing the engagement with local government through the BRT technical assistance and (hopefully) IEGs, as well as the Kabupaten and Provincial road/bridge maintenance activity

IndII’s Transport program covers both road and non-road activities. The roads program has two strategic elements: (a) to improve the effectiveness of the existing quantum of resources for roads management at DGH, through key programs such as the implementation of medium-term expenditure frameworks (MTEF) and performance based budgeting; and (b) to reduce the national road toll through better road safety institutional arrangements and capacity.


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On the non-roads side, covering sea, rail and air, IndII’s primary strategy is to assist GOI (in particular the MOT), to develop the necessary regulatory and institutional frameworks to implement key reforms contained in recent sector legislation (e.g. the shipping law, railway law, civil aviation law, road transport law).

2.3.1 Sea transport

IndII has been working closely with the Directorate General of Sea Transport (DGST) at the Ministry of Transport to develop the National Ports Master Plan (NPMP), a document that will form the regulatory and institutional foundation for port sector and network development over the next 25 years. A study tour was conducted to major ports in Singapore and Australia in September 2009. A series of technical workshops were held during November and December 2009 in Jakarta and important working papers issued. These papers will be collated and synthesised within the final NPMP policy and planning documents. In addition to working on port reform and development issues, IndII has focused some of its recent sea transport work on PSOs (pioneer shipping services).

The third and most important phase of the NPMP will be developed during this period. The main focus of this phase will be to ensure that the NPMP is completed in draft form by June 2010. To that end, the NPMP activity includes drafting a ministerial decree for implementing the Plan. The NPMP is expected to be an important entry point for a range of follow-on programming opportunities in the sub-sector. These could include, inter alia, those relating to individual port master plans; provincial sea transport master plans; port authority development; institutional and human resource development; and private sector investment in ports and terminals.

2.3.2 Railways

The Directorate General (Rail) within the MOT has continued working with IndII on a range of policy and project-related issues within the context of the ongoing railway revitalisation initiative. The assistance to the development of the Railways Master Plan (RMP), an important document that sets out the regulatory and institutional structure for sector and network development over the next 20 years, began in October with the first workshops being held in December 2009.

The main outputs of the national Railway Master Plan will be produced in the coming period, during which the main focus will be on finalising a series of working papers, which will then be collated and synthesised within the RMP. It is expected that the RMP activity will lead to potential follow-on activities including associated legal and regulatory reform work, institutional development (e.g. a possible rail regulator, track management agency), infrastructure management and human resource development. Such activities will focus on the medium- to long-term development of the Indonesian railway system.

To promote better outcomes in a short- or medium-term period, IndII will continue to work closely with the state-owned PT Kereta Api Indonesia (PT KAI). Current work on PT KAI’s public service obligation strategies may be expanded to consider other financing issues, as part of a broader business-planning and corporate restructuring initiative. Other possible activities include: engineering design assistance with the development of the South Sumatra and Jakarta-Bandung lines; and assistance with accounting and IT systems. As an initial activity, IndII may begin support to MSOE/PT KAI with an initiative to study locomotive leasing arrangements. Guidance is required from the Board as to whether IndII can continue to engage directly with PT KAI, or whether this engagement must be channelled through MSOE.

2.3.3 Urban transport

A scoping study was undertaken in the last work plan period, which led to the development of an activity on bus rapid transit (BRT) in selected cities, to be implemented during 2010. Three phases of IndII support are envisaged: Phase 1 will concentrate on strengthening the skills and capabilities for BRT planning in these city governments. Phase II will provide implementation (infrastructure) assistance to qualifying LGs through infrastructure enhancement grants. Phase lll would extend aspects of Phases l and ll to additional BRT


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cities on a case by case basis. It is likely that within the coming period several other possible interventions will be scoped. Although the complete list of topics is not yet defined and wider consultations will be required, such scoping could take place in any of the following areas: road pricing, clean air initiatives, municipal transport master plans, as well as potential national level policy assistance

2.3.4 Air transport

In late 2009, a single activity was designed to develop a national blueprint for air navigation services. The initial phase of planned interventions within the air transport sub-sector will focus on providing guidance on air navigation system improvements to support a uniform transition to the air traffic management (ATM) system of the future. A six-month program of support to DGCA will start in February 2010. The main output will be an ATM master plan, which will be the first of several expected activities with DGCA. This activity is expected to provide an important entry point to a range of follow-on programming opportunities in the sub-sector. Other activities currently under consideration for development include assistance with the Jakarta Automated Air Traffic Control System (JAATS) procurement; open skies policy development; and a national airport master plan, amongst others

2.3.5 Roads infrastructure

During the work plan period, IndII will continue to deliver assistance in four key areas. The foundation for the first three major activities is a comprehensive roads planning and programming report entitled: Application of Medium-Term Expenditure Framework & Performance-Based Budgeting in Directorate General of Highways, which was published in draft form in December 2009 and which is now being circulated for comment. This seminal report provides the strategic direction and focus for all present IndII activities within the roads sub-sector, with the exception of road safety.

The first activity involves planning and programming in DGH. The Government of Indonesia (GOI) is implementing important planning and budgeting reforms which unify the previously separate ‘development’ and ‘recurrent’ budgets in a unified budget, and now will implement performance-based budgeting (PBB) with a medium-term expenditure framework (MTEF) for the 2010 budget and 2010-2014 medium-term plan.

Future work on the MTEF will include the identification and agreement on performance indicators and the launch of an extensive training program to be delivered by GOI trainers. It is expected that the recommendations of this substantive MTEF Report will provide the focus and drivers for many of the follow-on areas of IndII support in the road sub-sector. Capacity building in MTEF, institutional strengthening, and the development of methods and tools, are all part of this strategic focus.

The second activity involves support to develop the Strategic Plan (RENSTRA), also guided by the comprehensive roads planning and programming report. DGH is implementing performance-based budgeting, intended to improve the connectivity between planning and the achievement of outputs and outcomes. This will require institutional changes in the implementation organisation within DGH in particular, and in the development and delivery of the expressway network. In addition an Initial Activity Request (IAR) will be prepared for the scoping of an asset-level project programming tool. Clearly, measures are needed to improve road planning through adopting a more systematic and longer term approach. Investments in capacity expansion to improve trans-regional travel on identified high priority corridors have also been flagged. INDII will start to expand its road sub-sector reach through involving other road transport agencies, such as the Directorate General of Land Transport (DGLT), various local governments and the Road Research Centre of the Ministry of Public Works.

The third activity involves the improvement of provincial / kabupaten road and bridge management plans. This two-phase activity will commence in March 2010. Phase 1 involves a review of road maintenance needs, funding and management practices in representative sub-national road agencies. Phase 2 will propose best practice for maintenance procedures in selected provinces and kabupatens. Road maintenance policy,


10

plans and operational documents will be developed according to MTEF concepts developed within the MTEF & Performance-Based Budgeting report.

The final activity is road safety; a discrete activity aimed at reducing the number of road traffic accidents in Indonesia and involving the dissemination of cutting-edge methods and practices in this field, taken from international best practice. There are three components to the activity. The previous work period saw the successful completion of the first two components: a scoping study for the establishment of the Road Safety Unit (RSU) and Road Safety Audit (RSA) training and workshops. Bina Marga then confirmed their strong support for the third component: establishment of the RSU. Work commenced on this component in December 2009. Staff have been identified for the RSU, with dedicated office space being provided in the Environmental Sub-directorate of Technical Affairs.

In the coming six months the activity will focus on building capacity within Bina Marga and within national consultant teams. At the same time, easy-to-use guides on road safety (including modern field guides) will be issued. International best practices in road safety audit will be disseminated throughout Indonesia, through ‘hands-on’ workshops and site visits.

2.4 Infrastructure Policy and Investment Program

Box 3: Key elements of the forward work plan period – Policy & Investment

Advancement of the Umbulan Springs public private partnership (PPP) project evaluation of EOI proposals; short-listing of potential bidders; and development and distribution of the RFT and draft contract.

Finalisation, review and development of standard operating procedures (SOPs) and other policy recommendations for the MoF’s Hibah program for infrastructure.

Development of a general policy framework (plus draft regulations) for the delivery of public service obligations (PSOs) through contracts with private enterprises.

Increased engagement with local government through the Umbulan Springs PPP support, the 20 PDAM program, the PSO program case study in Papua, and the infrastructure planning assistance for the Papua Bappeda.

This third IndII structural component covers a variety of important cross-sectoral themes such as public service obligations, PPPs, infrastructure financing, etc as well as other initiatives (e.g. telecommunications). It will have a strong focus on policy and regulatory issues and will include infrastructure investment facilitation initiatives. Under this component IndII provides continued support for successful initiatives commenced under earlier AusAID programming (e.g. radio spectrum management), whilst monitoring opportunities to provide support in other sectors and thematic areas (possible support for village level energy initiatives)

2.4.1 PPP institutional and transaction support

IndII assists contracting agencies to strengthen their capacities to prepare and tender public private partnerships (PPP) projects, and with improving the quality of their PPP projects. In the last FRPD period, IndII assisted Bappenas to develop a success fee mechanism and implementation guidelines for PPP projects, as required under the World Bank’s IDPL3 trigger.

In terms of providing assistance with transaction support, a strategic decision was taken in the last work plan period to focus such support on the bulk water sector. This was driven by a number of factors including, but not limited to: IndII’s internal assessment of which sectors have the best chances for PPP success in coming years; the strong GOI interest in bulk water projects, particularly that from Bappenas; and the strong linkages and synergies with other IndII Watsan-related programming, in particular the 20 PDAM programs, as discussed below.

Initial focus for such transaction support has been on developing a bankable business case for delivery of the Umbulan Spring project, using a PPP modality. In the last work plan period a business case was developed by IndII consultants working closely with GOI counterparts. Also during the previous period, the proposed Umbulan Spring project structure has been road tested with 14 financial institutions, and was found to be acceptable to the debt / equity


11

markets in principle. In the coming work plan period, the business case will be considered by the GOI, the Government of East Java and the relevant local governments; if approved, IndII will proceed to develop tender documents and a draft contract. It is expected that total funding requirement if this activity proceeds through to financial closure will be $A3-3.5 million.

In parallel, IndII is also developing a bankable PPP business case for the Jatiluhur-Jakarta pipeline and water treatment plant project for Jakarta, using lessons learned from Umbulan Spring. If approved by stakeholders, it will proceed to tender development. During the last work plan period, IndII undertook a scoping study to identify stakeholders and the work that needs to be undertaken to determine whether the construction and operation of this Pipeline and Water Treatment Plant can be delivered under a PPP modality, and to develop a detailed Activity Proposal and draft Terms of Reference for Stage 2. Total funding requirement if this activity proceeds through to financial closure will be $A3.5-4 million.

Also in the next work plan period, other water sector PPPs such as a pipeline linking Kabupaten Kuningan to Kota Cirebon and Kabupaten Cirebon will be explored. However before any resources are devoted to these, IndII will propose that clear measures of progress / success are first achieved with Umbulan, and possibly Jatiluhur.

2.4.2 Other infrastructure financing

In addition to promoting PPPs, IndII continues to pursue a diverse range of other activities to promote infrastructure financing from the public, private and donor sectors. These include:

Ongoing support for the Indonesia Infrastructure Financing Facility (IIFF) which has facilitated the execution of the Shareholder’s Agreement and provides consulting assistance to develop IIFF risk management and HR policies. Eighty-five per cent of this work has now been completed; the balance will be completed during the current work plan period.

Ongoing support to the financial and governance reform of 20 PDAMs to facilitate commercial borrowings for investment in new household connections and ancillary infrastructure. Eleven PDAMs have received IndII support to date and are in various stages of undertaking financial and good governance reforms. Of the 11, six have been completed to the satisfaction of DGHS. The ability of, and willingness to accept and introduce new and improved finance and governance practices varies across PDAMs. Nevertheless, very positive outcomes are being achieved and the activity should be concluded by end-May 2010. This activity now has direct linkages to the WSI program where eight reformed PDAMs will be better placed to qualify for and implement the water Hibah. There are also strong linkages with the Umbulan Spring and Jatiluhur-Jakarta pipeline projects, where beneficiary PDAMs (and their local government owners) need to demonstrate adequate cash-flows based on commercial tariffs. Seven PDAMS from the 20 PDAM program are directly involved with these two projects (three with Jatiluhur and five with Umbulan).

IndII is currently reviewing and providing recommendations to the Ministry of Finance on the current system of inter-governmental grants (in particular the Hibah Grants mechanism) as a means of improving government financing of infrastructure in the regions. This work is also scheduled for completion during the current work-plan period.

IndII has also undertaken some initial design and scoping work on a possible program to assist local governments implement and finance infrastructure services through the BLUD (Badan layanan umum daerah), a semi-autonomous agency for the delivery of key services.

2.4.3 PSO policy

IndII is exploring opportunities for assisting with the further refinement of a public service obligation (PSO) policy. Work on PT KAI’s PSO was completed in September and will be extended to other transport operators (such as PELNI inter-island shipping) during the current work plan period.


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IndII is also considering the delivery of PSOs through contracts with private enterprises, as this offers an important avenue for accelerating infrastructure provision, and a variety of models can be seen in the infrastructure sectors. However, there is as yet no overarching regulatory framework for such initiatives equivalent to that for BUMN PSOs. To address this need, IndII is providing assistance to Bappenas and KKPPI to develop a general policy framework for subsidising the provision of non-commercial infrastructure services by private operators. This activity, now underway, will be completed by May 2010 and focuses on selected sectors to review existing initiatives and develop good practice guidelines for the design and management of output / performance-based PSO contracts. Coastal shipping in Papua and West Papua represents an important initial case study, and the PSO team has already visited the IndII based in Papua (as described below) during the last work plan period. In addition to the above an economic model is being developed, and existing PSO legislation and regulations reviewed and re-drafted where necessary.

2.4.4 Infrastructure policy and planning

It was agreed previously that the IndII facility would provide support to Bappenas with the preparation of the infrastructure section of the draft national medium-term development plan (RPJM) and with its subsequent refinement following the installation of a new Government in October, amongst other infrastructure planning-related activities. That activity commenced with the placement of two infrastructure advisors at Bappenas from May/June 2009 and will continue until June 2011.

Improving infrastructure planning at the regional level is another important cross-sectoral theme for IndII. IndII is providing infrastructure planning support to the Bappeda offices in Papua and West Papua. Since activity inception in November 2009 support had been provided to develop personal improvement action plans for Bappeda staff, an infrastructure planning review has been completed, a draft Bappeda capacity development strategy has been prepared and assistance with the preparation and introduction of E-procurement has been provided.

During the forthcoming work-plan period, IndII will provide specialist technical assistance to the provincial governments through their respective BAPPEDAs with spatial planning, a review of INPRES 5/2007, improvements in monitoring and evaluation, roads advisory services, and consultancies by a transport economist, and energy advisor and a telecommunications adviser. Ongoing advisory support and on the job training is also being provided by the activities of two long-term advisers on the ground. Other IndII supported activities will also seek to involve the two provinces in their activity implementation plans where possible. A transport specialist visited in December 2009 and IndII’s PSO specialist has also started discussions for a PSO in coastal shipping following a visit in January 2010.

During the last work plan period IndII supported the Coordinating Ministry of Economic Affairs (CMEA) to assess the implementation of key infrastructure policy reforms initiated since 2004 by: reviewing achievements to date; identifying constraints; and developing recommendations for, and reporting on, future infrastructure policy development and reform. This activity is now complete and a final summary report delivered to CMEA.

2.4.5 Telecommunications

Technical assistance has focused on the reform of bandwidth-based pricing for cellular mobile services assistance; the development of a public consultation policy white paper; an overhaul of licensing administration; and the introduction of E-Government initiatives for new licensing of radio communications. This work will continue during the current work plan period. DGPT has indicated its interest in further technical assistance to enhance financial budgeting and planning; to develop an IT strategic plan; to assist the development of a corporate strategic plan; to support an overhaul of Telecommunications Law No.36 (1999); and to develop advanced multiple object electronic auction systems to support its forward program of spectrum auctions. Substantial corporate reforms are scheduled for 2011.


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2.4.6 Risk based methodology in internal audit function

IndII is undertaking this activity to contribute to the long-term development needs of Indonesia by supporting the Ministry of Public Works (MPW) in its planned enhancement to value-added services in terms of budget impact, infrastructure development and activity safeguards. Significant progress has been made to date and three pilot projects have been successfully completed. Further pilot projects have been identified for the next period along with increased capacity building activities.


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3. REVIEW OF PROGRESS

Recommendations for IndII Board

IndII recommends that the Board note:

(d) activity programming options might be constrained by the current 30 June 2011 Facility end date.

3.1 Introduction

This chapter of the FRPD outlines and briefly discusses achievements over the August 2009 to January 2010 work plan period. The previous chapter included sections on the forward work plan for individual activities, whilst this chapter looks at overall progress of the IndII facility. This will include a discussion on the progress on the overall design; implementation and completion of activities; as well as brief update on the development and nurturing of key institutional relationships. Achievements relating to management (including finance and administration), as well as systems and procedures, will be discussed in the next chapter titled “Management Systems”.

3.2 Activity development and approvals

Design and development of activities has been the primary focus of the IndII management team during the most recent work plan period (August 2009 – January 2010). Continuing the momentum established in the period before, IndII has developed new activities in both established and new areas, particularly in the transport sector.

As can be seen in the shaded sections of Table 2 below, total Technical Team (TT) approvals increased from $A11.26 million at the end of the last work plan period, to approximately $A18.2 million by late December 2009. Also during this time the number of activities actually commenced increased from 26 to 40 (although by early January 2010 the total number of approved activities had reached 45).

Another noteworthy development during this period was that IndII is now seeing more activities being completed. At the end of the last period, only two activities had been completed; by late December 2009 this had increased to 12.

Table 2: Activity development, January 2009 – January 2010

Month AusAID approval ($) TT Approval ($)Number of activities

commencedNumber of activities

completed

Jan-09 $974,150 $4,936,629 3 2

Feb-09 $1,474,150 $6,106,629 4 2

Mar-09 $2,223,380 $6,186,629 6 2

Apr-09 $3,030,180 $6,620,429 8 2

May-09 $5,160,088 $8,072,378 13 2

Jun-09 $6,535,646 $10,154,103 18 2

Jul-09 $10,345,665 $11,260,253 26 2

Aug-09 $10,345,665 $12,791,553 26 4

Sep-09 $12,340,565 $13,991,553 30 7

Oct-09 $12,446,565 $14,097,553 32 9

Nov-09 $12,773,263 $14,920,751 35 9

Dec-09 $13,422,633 $18,178,501 39 12

Jan-10 $15,021,371 $18,178,501 40 12


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The continuing growth in activity development can also be seen from the two graphs below (Figures 1 and 2). Note that this version of the FRPD was drafted in mid-January, hence data for January was still very preliminary.

IndII’s agreed procedures concerning Technical Team approvals often require a meeting of the Technical Team (for the approval of larger, more complex activities), so patterns of TT approvals are often quite uneven and inconsistent. Note, for example, the large jump in approvals in December 2009: this is because more than $A3 million in activities were approved at the TT meeting in late December (just prior to the break).

Figure 1: Cumulative Technical Team approvals

Figure 2: Cumulative AusAID approvals

Note from Figures 1 and 2 above that there is some divergence between AusAID and TT approvals. This can be explained by two factors: In a number of cases a larger activity budget is approved by the TT, whilst only the first stage

of the activity budget is approved by AusAID. Only upon successful completion of the first stage is the full activity budget approved, hence aligning AusAID approval budget levels with those of the TT.

TT approvals are based on either a one-page initial activity request (IAR) or a multi-page activity proposal (AP) document. Such preliminary documents are not detailed implementation

Cumulative AusAID approvals

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10

Cumulative Technical Team approvals

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000



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plans / activity designs (ADs) as required for AusAID approvals. There is often a delay in finalising final design documents. This is the case for activity 44 relating to the development of a community-based water supply, as a participating bank has withdrawn from the program, and steps are now being taken to find a replacement funding institution.

Table 3 below identifies TT-approved budgets by primary counterpart agency. As noted in the previous (August 2009) FRPD, IndII’s strongest institutional relationship is with DGHS at MPW, and this is reflected in the table in terms of total activities and approved budgeted amounts. DGHS is the primary counterpart for 10 approved and implemented activities to date, with a total budget value of almost $A5.5 million (or 30 percent of total TT approvals). The next strongest counterpart relationship is with Bappenas with (seven activities) and DG Highways (six activities).

Note also that, in many cases, while IndII activities involve multiple counterpart agencies, this is not reflected in the table. This issue is particularly relevant in IndII’s interactions with local government, where a central government department is usually the requesting agency and implementing partner. Hence the figures below somewhat understate the importance and relevance of local government as a counterpart for IndII.

Table 3: Approved activity budgets by counterpart agency

Counterpart agency No. of activities Approved budget Share (%)

Bappenas 7 $2,074,641 11% Coordinating Ministry for Economic Affairs 1 $160,000 1% DG Civil Aviation (MOT) 1 $504,000 3% DG Highways (MPW) 6 $2,506,760 14% DG Human Settlements (MPW) 10 $5,544,242 30% DG Post and Telcomms (DGPT) 1 $500,000 3% DG Rail (MOT) 2 $590,600 3% DG Sea Transport (MOT) 4 $906,225 5% Local Government (LGs) 4 $2,714,175 15% Ministry of Finance (MOF) 2 $970,000 5% Ministry of Transport (MOT) other 1 $98,950 1% Ministry of Public Works (MPW) other 1 $359,533 2% Other 4 $1,296,650 7% PT KAI (SOE) 1 $49,500 0%

Total 45 $18,275,276 100%

Table 4 below classifies the total TT-approved budgets by theme and component. By theme, the approvals are split evenly across Infrastructure Program Management (IPM) and Policy and Regulation (P&R). However the definition of activities according to these categories is somewhat arbitrary, as it is often difficult to determine whether an infrastructure activity has more of a policy / regulatory or program management focus. Noticeably, Infrastructure Enhancement Grants (IEGs) expenditure remains nil, however IndII is now working with select local governments to develop proposals for IEG-funded projects in wastewater, solid waste and bus rapid transit systems, and expects to begin expenditure on these items in the coming work plan period.

Table 4: Approved activity budgets by theme

Cross-cutting themes No. of activities Approved budget (AUD) Share (%)

Infrastructure Program Management (IPM) 15 $8,596,827 47% Policy and Regulation (P&R) 28 $8,487,799 46% Infrastructure Enhancement Grants (IEGs) 0 $0 0% Other 2 $1,190,650 7%

Total 45 $18,275,276 100%

By component (see Table 5 below / over), there is (roughly) an even three-way split across approval amounts for policy and investment, transport and Watsan activities. Policy and investment


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remains the largest component, however this will change over the coming work plan period, as the WSI program begins to be implemented, in particular the grants for the Water Hibah.

Table 5: Approved activity budgets by component

Component No. of activities Approved budget (AUD) Share (%)

Policy & Investment 16 $6,486,472 36% Transport 16 $4,757,335 26% Watsan 11 $5,840,819 32% Other 2 $1,190,650 7%

Total 45 $18,275,276 100%

3.3 Activity expenditure

The table below shows the budgets and expenditures for the 45 TT-approved activities identified above in Tables 3, 4 and 5. As will be noted, slightly more than $A6 million had been expended by January 2010, the most recent data available at the time of drafting this document. Overall, this represents approximately 40 percent of AusAID-approved activity budgets.

The far right column of Table 6 shows the percentage of the approved budget (AusAID) that has been expended. As can be seen there is further scope in these budgets; as noted above, overall only 40 percent of approved budgets have been expended. However this includes only those invoices that have been submitted, processed and paid – an administrative process which can take between one and two months. If expenditure were to be calculated on an accrual basis (when work is performed, specific deliverables presented, consultation occurred, etc - as opposed to invoices paid) this 40 percent figure would be substantially higher.

Table 6: Activity approved budgets and expenditure

No. Activity code Activity title

Approved budget (AusAID)

Approved budget (TT)

Total

Cumulative spend % Spent

1 1 Senior MoF / AusAID Infrastructure Adviser $940,650 $940,650 $556,578 59%

2 2 Success Fee Mechanism Workshop $25,000 $25,000 $24,625 98%

3 3 UNESCAP Ministerial Conference $8,500 $8,500 $8,500 100%

4 4 Water and Sanitation Initiative Stage 1 $87,720 $92,000 $87,605 100%

5 5 Radio Spectrum Management $500,000 $500,000 $400,257 80%

6 6 Indonesia Infrastructure Financing Facility (IIFF) $669,230 $670,000 $431,882 65%

7 7 Proposals for an Improved Railway PSO Scheme $49,500 $49,500 $47,935 97%

8 8 Strengthening & streamlining procurement in DGH $100,000 $99,700 $87,139 87%

9 9 MTDP support for Bappenas and IndII $393,541 $393,541 $92,684 24%

10 10 Financial Reform 20 PDAMs $1,300,000 $1,300,098 $1,161,005 89%

11 11 Internal Audit Action Plan $359,533 $359,533 $200,639 56%

12 12 Losari Beach EIA $408,387 $408,387 $66,422 16%

13 13 WSI PTA $140,260 $500,000 $139,411 99%

14 14 Road Safety Audit $757,300 $757,300 $283,625 37%

15 15 DED for Mamminasata, South Sulawesi $1,404,694 $1,404,694 $208,486 15%

16 16 MTEF Road Sector $384,300 $384,300 $99,222 26%

17 17 GIS Definition Study $80,000 $80,000 $78,775 98%

18 18 Urban Water Supply in NTT $99,175 $99,175 $84,104 85%

19 19 PSO Policy Reform - Infrastructure Provision $300,000 $300,000 $118,592 40%

20 20 Success Fee Mechanism for PPP $67,600 $67,600 $67,926 100%

21 21 Assessment of Infrastructure Policy Reform $160,000 $160,000 $95,851 60%

22 22 Papua/West Papua Infrastructure Planning $1,500,000 $1,500,000 $272,761 18%

23 23 National Ports Master Plan $104,125 $104,125 $104,125 100%


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24 44 Community Based Org. Water Services $0 $1,200,000 0%

25 71 Wastewater Masterplan in Four Cities $101,590 $101,590 $19,941 20%

26 128 MOF Regional Grants for Infrastructure $299,290 $300,000 $29,603 10%

27 151 WSI - Socialisation & Public Awareness $500,000 $550,000 0%

28 152 National Rail Master Plan Study $99,100 $99,100 $62,539 63%

29 153 Assistance to DG Highways $55,460 $55,460 $54,234 98%

30 154 Activity Preparation and Design Fund $250,000 $250,000 $116,468 47%

31 156 Umbulan Springwater PPP $647,500 $647,500 $345,131 53%

32 157 National Rail Master Plan Stage 2 $491,500 $491,500 $253,842 52%

33 164 Water Hibah and Wastewater Design $464,973 $464,973 $166,415 36%

34 165 National Ports Master Plan Stage 2b $121,980 $123,000 $116,756 96%

35 166 National Ports Master Plan Stage 2a $92,300 $92,300 $92,300 100%

36 172 Transport Systems PPP Training $36,000 $36,000 $29,563 82%

37 173 Padang Earthquake Relief Assistance $70,000 $70,000 $1,757 3%

38 174 Lead Roads Advisor DGH $210,200 $215,000 $1,510 1%

39 175 Bus Rapid Transport Devt in selected cities $165,000 $165,000 $6,382 4%

40 176 Provincial & Kabupaten Road Maint. Master Plan $157,063 $995,000 0%

41 178 Jatiluhur-Jakarta Pipeline, Water Treat. Plant $75,000 $75,000 0%

42 180 Assessment of Air Traffic Mgt Strategic Policy $504,000 $504,000 0%

43 181 MOT Lead Adviser $98,950 $98,950 0%

44 182 National Port Master Plan (Stage 3) $586,800 $586,800 0%

45 183 Improving Urban Water Supply in NTB and NTT $155,150 $950,000 0%

TOTAL $15,021,371 $18,275,276 $6,014,590 40%

CUMULATIVE TOTAL $6,014,590 40%

IndII is clearly making progress in increasing the momentum of its activity implementation. This can be seen from the figures below/over, showing imprest account cumulative and monthly expenditure on activities. In the past four months of 2009 there was rapid growth in actual expenditure, with an average monthly activity spend of approximately $A835,700 per month during the September 2009 – January 2010 work plan period, a substantial increase from the average $A142,300 monthly expenditure over the previous work plan period (February – August 2009).

For IndII to reach its activity expenditure goal of $A15-20 million by mid-2010, monthly expenditure in the range of $A1.5-2 million per month is required over the next work plan period. As shown in the expenditure forecasts in the following section IndII, through the ever-increasing momentum of new activity development and implementation, expects to increase its monthly spend beyond the $A1.5 million mark.

Figure 3: Imprest account cumulative expenditure

Imprest account cumulative expenditure

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000



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Figure 4: Imprest account monthly expenditure

3.4 Expenditure projections to September 2010

The expenditure projections shown below in Figure 5 are projections only. The purpose of these projections is to illustrate the existing scope for rapid expansion in the level of IndII commitments and expenditure over the coming nine months to September 2010.

The expenditure projection is based on actual expenditure to December 2009, plus estimated expenditure to September 2010. The estimated expenditure is based on existing contractual commitments plus estimated expenditure for approximately 30 new or proposed activities, identified in this work plan, and to be prepared and submitted for technical team approval.

The projected commitments are based on existing technical team commitments to December 2009 and anticipated commitments by the Technical Team to September 2010. The latter are very conservative estimates and actual commitments are expected to be significantly higher than shown below. It is probable that several new proposals will emerge in the Policy and Investment component seeking commitments of up to $A8 million over the remaining life of IndII.

The projections shown below relate only to the $A40 million IndII Imprest Account and do not take into account expenditures that will result from the WSI Imprest Account.

Figure 5: Project (cumulative) commitment and expenditure to September 2010

Imprest account monthly expenditure

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000



20

The projections above include estimates for expenditure of $A1,600,000 for the first three possible Infrastructure Enhancement Grants (IEGs). The managing contractor’s (MC) current assessment, yet to be discussed with the technical team, is that approximately $A10 million will be committed for IEGs in total. Should this be approved by the technical team, the projected commitments beyond September 2010 would rise to approximately $A35 million, leaving a further $A5 million to be committed after September.

The implications of this would be that:

(a) IndII may reach a position by September 2010 where new financial commitments will not be possible without additional activity funding being provided; and

(b) Longer-term activity proposals requiring commitment beyond June 2011 will not be possible without specific approval from AusAID. This may constrain the types of activity proposals that the MC may be able to submit to the technical team within the near future.

3.5 Development of institutional relationships

The rapid growth in new activity design and development has been accompanied by a strengthening of existing institutional relationships, as well as the development of new programming relationships with other counterpart agencies. In the previous FRPD it was noted “...that such is the strength of these existing and emerging institutional relationships that IndII will be exploring opportunities to place full time lead advisors in select GOI agencies in the coming work plan period.”

In December 2009, IndII established an office at DGH staffed by one international and one national roads adviser, as a stand-alone activity. The advisers’ responsibilities will be to continue to broaden and deepen the relationship with DGH, by assisting with the implementation, management and oversight of existing IndII roads activities at DGH (such as the MTEF and Roads Safety program) and, perhaps more importantly, in identifying and designing new programming opportunities.

IndII has also expanded its relationship with the Ministry of Transport (MOT) during the work plan period. In addition to continuing the important work on the railway and ports master planning, IndII has also recently designed, and had approved, a new activity to assist the Directorate General Civil Aviation (DGCA) with the development of a policy blueprint for air navigation. IndII has also been working closely with the Directorate General Land Transport (DGLT) in the design and implementation of another new activity to assist selected local governments. To build upon and strengthen these MOT-related activities, IndII will establish an advisory unit at MOT’s Vice Minister’s office in January 2010, to be responsible for assisting in coordinating and integrating existing programs, as well as identifying and designing new IndII-funded activities to assist MOT leadership with a range of significant transport policy issues.

IndII’s strongest and most productive institutional relationship to date is that shared with DG Cipta Karya (DGCK) at the Ministry of Public Works (MPW). This relationship has developed, in part, through the implementation of a number of important IndII activities, including the 20 PDAM program (an initiative of the DGCK to professionalise and corporatise a self-

selecting group of water utilities); the design and development of the WSI-funded Water Hibah, city sanitation master planning

and Solo / Banjarmasin sewerage extension programs; a new program to improve the governance of water utilities (PDAMs) in eastern Indonesia; with Bappenas, development of business cases for major bulk water supply projects; and the on-going development of proposals for IndII financing of wastewater and solid waste

projects through IEGs.

To strengthen and broaden this existing productive relationship, IndII is discussing the possibility of developing a lead advisory office at DGHS; there is an expectation for this office to be set up in the coming work plan period.

IndII continues to enjoy a strong relationship with the Department of Communication and Information, Directorate General Posts and Telecommunications (DGPT). Various technical


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assistance activities to date have focussed on the reform of band-width based pricing for cellular mobile services assistance and have been facilitated by a full-time project manager embedded within DGPT. In the coming work plan period the relationship will be broadened through the pursuit of activities to promote institutional and organisational change and development, such as technical assistance to enhance financial budgeting and planning; development of an IT strategic plan; and assistance with the development of a corporate strategic plan. Other key activities proposed include support for a review of Telecommunications Law No.36 ((1999) and in developing advanced multiple-object electronic auction systems to support DGPT’s forward program of spectrum auctions.

IndII’s engagement with local government is expanding. This work plan period saw the establishment of an IndII program embedded with the Bappedas in Papua and West Papua to assist the provincial governments with infrastructure planning matters. Other new programs with local governments include assistance to four LGs to implement their bus rapid transit systems; and a program of assistance to LGs in NTB to improve the governance of their water utilities (PDAMs).

The preparation and implementation of the WSI also necessitates considerable interaction with, and participation by, local government in such activities as the Water Hibah, city sanitation master planning, as well as extensions to the sewerage system in Surakarta and Banjarmasin.

Local government agencies continue to be involved to varying degrees in a range of other IndII programming including the environmental impact assessment (EIA) for a wastewater treatment plant and the detailed engineering design (DED) for a solid waste processing plant in South Sulawesi, as well as possible follow-on activities in ports, rail and urban transit.

3.6 Progress in achieving IndII’s objectives

The previous FRPD considered IndII performance to date against stated goals and objectives (as articulated in various project documents) as well as against directions provided by the Board. The conclusion was made that IndII has progressed in a manner that was largely consistent with these stated goals and objectives. However it was also noted that two noticeable gaps in IndII’s programming to date relate to the engagement with local government and the development of a grants program; this continues to be the case. However in the last work plan period the engagement with local government has expanded and important steps are now being taken to disburse funds for regional infrastructure through the IEGs.

The previous section of this document demonstrates that important initiatives are being taken to reduce the deficit with regard to local government programming.

The broad picture now emerging is that the IndII facility has gathered significant momentum and is now well positioned to consolidate the hard work of the past year and is starting to achieve strongly against the program’s stated objectives. The breadth, depth and quality of IndII’s engagement continues to develop and is achieving high regard from stakeholders within the sector. The program is now tangibly meeting the high priority needs of GOI partner agencies, and there is emerging a growing awareness of, and demand for, the support that IndII can provide. IndII is increasingly being seen as playing a major role with GOI through its rapid response capability, the high calibre of technical assistance being provided and as a catalyst for the establishment of strong productive partnerships.

Examples of the more innovative and pioneering work being supported by IndII in furtherance of these objectives include:

The objectives of the IndII Facility are to support the national and sub-national

Governments of Indonesia to:

(a) Implement efficient and effective project management for Government

infrastructure projects, including those financed by loans from the MDBs;

(b) Build a more supportive and conducive policy environment for

infrastructure investment; and

(c) Enhance the economic and social impact of priority infrastructure

projects.


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Development of PPPs for the Umbulan Spring Water Supply project and the Jatiluhur-Jakarta water pipeline. The support being provided is critical to the development of sound bankable proposals that will attract solid private sector interest in financing these two important infrastructure developments

Medium Term Expenditure Framework in the roads sector. The support aims to develop and demonstrate how improved program and activity alignments can lead to improved efficiencies and effectiveness in organisational structures, budget structures, policy planning structures and performance management structures. This is a pilot activity with wider application across the public sector, once fully developed.

IndII is supporting the DG Cipta Karya with the development and implementation of the Water Hibah. The Water Hibah concept aims to support decentralised public sector investment in the water sector through outputs based incentive grants. This is pioneering work that will lead the way forward in this sector - and in other sectors including transport.


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4. MANAGEMENT SYSTEMS

During the period under review there has been significant progress in the development of IndII’s management systems and plans. The systems and plans described in more detail below enable the managing contractor to improve its management of the growing number of activities being implemented and to report and provide key information to members of the broader IndII management structure. The development of management plans for M&E, gender, environment and risk management facilitate improved compliance with broader management and cross-cutting policy requirements. The development of the database, website and publications program provides significant substance to IndII’s communications objectives.

4.1 Communications

During the second half of 2009, several existing communications activities were strengthened and new ones were launched.

4.1.1 Website

The IndII website was redesigned to modernise its appearance and impact, and to make it easier to read and navigate. The content has been revised, expanded, and updated. Communications materials such as Activity Updates and the quarterly journal Prakarsa are now regularly uploaded. In addition to informing interested parties about IndII objectives and activities, the site offers practical resources to IndII’s partners, consultants and technical staff, who can download technical reports, document and report templates, sample contracts, a style guide, and similar materials to assist in confirming IndII’s roles and purpose.

In 2010, increasing numbers of reports, updates and photos will be added to the website as they are produced. Due to the expanded content and frequent uploading of new materials, the task of managing the website is growing much more time-consuming. IndII is therefore allocating more resources to ensuring updates and revisions are done quickly and correctly.

Some interesting statistics over the period 1 November 2009 to 14 January 2010 include:

the IndII website attracted some 900 unique visitors;

almost 48 percent of these were new visits;

there were 1,819 separate visits from 35 countries;

1411 website visits came from Indonesia; 159 from Australia; and 78 from the US;

10,105 pages were viewed - an average of 5.56 pages per visit; and

the average time spent on site was five minutes.

4.1.2 Informational materials

IndII began producing Activity Updates in September 2009, and as of writing, 13 Activity Updates have been produced. These one-page documents describe specific IndII events or actions such as workshops, roundtables, site visits, etc., explaining how they fit into IndII’s overall objectives and featuring participant quotations and photos for added interest.

IndII is also preparing short Activity Descriptions (principally for use on the website) that summarise each new approved activity. This is an ongoing process; approximately 24 have been completed so far.

In 2010, IndII will continue to produce Activity Updates, as well as success stories, which follow a similar format but describe beneficial outcomes resulting from IndII’s efforts. Brief handouts describing IndII and its main areas of technical focus will also be developed from the wealth of material now available due to the website revisions and launch of the quarterly journal Prakarsa (see below).

4.1.3 E-mail blasts

To ensure that Activity Updates (and eventually success stories as well) reach their intended audience, IndII is sending “e-mail blasts” to a distribution list of approximately 500 partners


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and stakeholders in the Indonesian government and other organisations. These blasts, similar in appearance and purpose to those which newspapers and magazines typically e-mail their subscribers, allow readers to browse through headlines and photos and click on links of interest in their preferred language. The full text can then be read on the IndII website.

To date IndII has distributed two blasts, each one highlighting six or seven Activity Updates. In 2010, additional blasts will be issued every four to six weeks, as needed.

4.1.4 Quarterly journal

IndII launched its premiere edition of its bilingual quarterly journal Prakarsa in December, 2009. The theme of the first issue was “Introducing IndII” and included articles on the policy focus which underpins much of IndII’s activities; a look at issues confronting the provision of water and sanitation services; and an overview of how trained engineers can promote Indonesian road safety. Columns that will appear regularly such as “Infrastructure by the Numbers” and “Outcomes”, were also introduced.

Prakarsa is distributed to IndII counterparts in both print version and electronically, and is available on the website (a printer-friendly version is also provided to make additional reproduction easier and more environmentally sensitive). Immediately following the distribution of the first issue, IndII was contacted by several readers who had seen the publication through colleagues and were requesting that they be added to the distribution list.

4.1.5 End-of-year event

The Indonesia Infrastructure Initiative held an end-of-the-year event at the Borobudur Hotel in Jakarta on 17 December 2009, attended by almost one-hundred of IndII's partners in the Indonesian government, as well as Australian embassy officials. The event was intended as an opportunity to celebrate the accelerated pace of activity development that IndII has achieved, as well as to launch the premier edition Prakarsa. Dr. Dedy S. Priatna, Deputy Minister for Infrastructure Affairs at Bappenas, presented a vision for IndII's future activities and IndII Director David Ray noted that IndII (then) had 41 activities underway, with many more in the pipeline. Australia’s Ambassador to Indonesia Mr. Bill Farmer presented a copy of Prakarsa in Indonesian to Bapak Dedy, who in turn presented the English language version to the Ambassador.

4.1.6 Collateral materials

IndII developed standardised design elements featuring photos that evoke IndII’s infrastructure focus and incorporating the AusAID logo. Folders were produced with these elements, which are also used in all IndII materials such as the website, email blasts, Prakarsa, etc.

4.1.7 Additional plans for 2010

In addition to continuing the activities described above, IndII will concentrate on several additional communications activities over the coming year, such as:

Disseminating technical reports and M&E reports. IndII is developing templates and securing editorial resources with the goal of ensuring that all IndII-produced reports appropriate for general release are of a consistent high calibre in terms of both content and readability. These reports will made available through the website and other means.

Creating a photo-sharing account. IndII will take part in a growing trend among like organisations and create an account on a photo-hosting site such as flickr. The central purpose of such a site is to make it easy for participants in IndII events to browse through and download photos related to workshops or training sessions (such content can be managed more easily and inexpensively than on the main website).

4.2 Monitoring and evaluation

As outlined in the previous FRPD, each stakeholder has a specific responsibility and interest in M&E. The managing contractor (MC), SMEC, is responsible for activity-level and process


25

reporting, in addition to reporting against program result areas. The Independent Assessment Team (IAT) is responsible for higher-level impact reporting at the facility and goal levels and to incorporate results from the Board and TT.

Since the approval of the IndII M&E Plan, the MC has further developed reporting templates and incorporated these into activity TOR and contracts for the use of implementing consultants and staff. These are now routinely being used and loaded onto the activity database. The M&E Plan is available to all consultants on the IndII website.

In addition, the M&E consultant has conducted two initial case studies on Activity 10, Financial Reform of twenty PDAMs and Activity 14, Road Safety Audit. Both these activities were commenced prior to the approval of the IndII M&E plan and whilst the findings found that solid progress was being made and a number of key result areas had been achieved, they were not effectively utilising approved reporting formats and that there was a variation in the consistency of management systems and structures between the activities. These findings have been noted by IndII and measures have been taken to ensure that these shortcomings are rectified across all ongoing and future activities.

AusAID will be mobilising the Independent Assessment Team (IAT) in March 2010 with a view to assessing IndII progress against facility- and goal-level objectives, and to inform AusAID’s assessment of the overall impact of IndII and its possible continuation beyond June 2011. The IndII M&E consultant will visit at the same time and work with the IAT.

4.3 Risk management/ Gender/ Environment

Plans for Risk Management, Gender and Environment have all now been approved. The Risk Management Plan (RMP) was approved in July 2009, the Gender Plan (GP) in October 2009 and the Environment Plan (ECOMAP) in November 2009. These plans are now being used by IndII for the guidance and management of the program. Training in gender management was conducted in late-January for all IndII long-term program management staff and selected consultants. Training in ECOMAP was conducted in mid-February. The above plans are available on the IndII website for the guidance of sub-consultants and contractual documentation, and mobilisation briefings are used to ensure that all consultants are aware of the policy requirements and that they are being applied.

4.4 Administration and management

4.4.1 Staffing

AusAID has approved an increase in the numbers of staff for the existing IndII program, plus a further increase in staff for the Water and Sanitation Initiative. The number of approved staff positions now total 20, comprising five international staff and 15 national staff. The two changes in international staff include the replacement of the former Technical Director - IPM position with a new Technical Director - Transport position. The occupant of this position is David Shelley. The second change is the creation of a Technical Director - Watsan position now occupied by Jim Coucouvinis. These increased staffing resources will greatly assist IndII to meet the full extent of its obligations under the Infrastructure for Growth Initiative and the Water and Sanitation Initiative.

An organisation chart is shown at Annexe 1.

4.4.2 Office expansion

The increasing program workload for IndII, largely driven by the inclusion of the WSI component and the large number of short-term consultants engaged by IndII, has led to severe pressures on the available work space. To meet these changing needs, IndII has renovated its existing office space to add another three work stations and additional storage facilities. IndII has also taken a lease on a smaller office area on the sixth floor of the E-Trade Building. This will accommodate the six-person Watsan team as well as the Senior Infrastructure Adviser and one staff. The management of the two floors has been incorporated within existing IndII arrangements and office and administrative services are shared. All team members share the same IT and telephone systems.


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In addition to the expansion of the working areas, IndII has also renovated the meeting rooms to allow for a larger meeting space for Board and Technical Team meetings. The existing walls between the two meeting rooms have been removed and a sliding wall has been installed thus improving the functionality of the existing facilities. The small meeting room has also has three “hot desks” installed to serve as overflow capacity in peak periods and to allow for small teams to work together when needed.

4.4.3 Management Information System (MIS)

IndII has commenced the development of a comprehensive management information system to assist with the complexities of day-to-day management comprising an ever-increasing number of separate activities. The new system will allow for integrated activity portfolio management and monitoring and evaluation, and will provide better strategic information. Inter alia the new MIS will facilitate improved scheduling, cost and budget monitoring, management of deliverables, document management, dashboard management displays and alerts and reminder facilities.

The MIS will be trialled during February and will be operational in March/April.


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ANNEXE 1: IndII organisational chart as at February 2010

* Appointment is subject to completion of the Contract Variation.


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ANNEXE 2: Estimated Expenditure 2009-2010 (accrual basis)

Q3 Financial Year 2009-2010 Estimated Expenditure

Expenditure to Q 1 Total31-Dec Jan-10 Exp End Jan Feb-10 Mar-10 Apr-10 May-10 Jun-10 FY Cumulative Jul-10 Aug-10 Sep-10 Cumulative Cumulative

1 Senior MoF/AusAID Infrastructure Adviser Other Other Other $ 940,650.00 $ 940,650.00 531,783.94$ 24,793.72$ 556,577.66$ 40,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ 756,577.66$ 40,000.00$ 40,000.00$ 40,000.00$ 120,000.00$ 876,577.66$

2 Success Fee Mechanism Workshop Bappenas P&R Policy & Invest 25,000.00$ $ 25,000.00 24,624.57$ -$ 24,624.57$ -$ -$ 24,624.57$ -$ 24,624.57$

3 UNESCAP Ministerial Conference Bappenas P&R Policy & Invest $ 8,500.00 $ 8,500.00 8,500.00$ -$ 8,500.00$ -$ -$ 8,500.00$ -$ 8,500.00$

4 Water and Sanitation Initiative Stage 1 DGHS IPM Watsan 87,720.00$ $ 92,000.00 87,604.95$ -$ 87,604.95$ -$ -$ 87,604.95$ -$ 87,604.95$

5 Radio Spectrum Management DGPT P&R Policy & Invest 500,000.00$ $ 500,000.00 339,677.65$ 60,579.04$ 400,256.69$ 40,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ 560,256.69$ -$ 560,256.69$

6 IIFF MOF IPM Policy & Invest 669,230.00$ $ 670,000.00 431,881.77$ 431,881.77$ 70,000.00$ 70,000.00$ 571,881.77$ -$ 571,881.77$

7 Proposals for an Improved Railway PSO Scheme PT KAI P&R Transport 49,500.00$ $ 49,500.00 47,935.07$ -$ 47,935.07$ -$ -$ 47,935.07$ -$ 47,935.07$

8 Strengthening & Streamlinig Procurement in DGH DGH P&R Policy & Invest 100,000.00$ $ 99,700.00 87,138.91$ -$ 87,138.91$ -$ -$ 87,138.91$ -$ 87,138.91$

9 MTDP support for Bappenas Bappenas P&R Policy & Invest 393,541.00$ $ 393,541.00 80,220.17$ 12,463.77$ 92,683.94$ 15,000.00$ 15,000.00$ 15,000.00$ 15,000.00$ 15,000.00$ 167,683.94$ 15,000.00$ 15,000.00$ 15,000.00$ 45,000.00$ 212,683.94$

10 Financial Reform 20 PDAMs DGHS IPM Policy & Invest 1,300,000.00$ $ 1,300,098.00 1,006,568.30$ 154,436.33$ 1,161,004.63$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 2,161,004.63$ 200,000.00$ 200,000.00$ 400,000.00$ 2,561,004.63$

11 Internal Audit Action Plan MPW P&R Policy & Invest 359,533.00$ $ 359,533.00 175,793.67$ 22,069.17$ 200,639.03$ 200,639.03$ 40,000.00$ 40,000.00$ 40,000.00$ 120,000.00$ 320,639.03$

12 Losari Beach EIA DGHS IPM Watsan 408,387.00$ $ 408,387.00 66,256.08$ 165.58$ 66,421.66$ 20,000.00$ 50,000.00$ 50,000.00$ 20,000.00$ 50,000.00$ 256,421.66$ -$ 256,421.66$

13 WSI PTA DGHS IPM Watsan 140,260.00$ $ 500,000.00 139,410.57$ -$ 139,410.57$ -$ -$ 139,410.57$ -$ 139,410.57$

14 Road Safety Audit DGH P&R Transport 757,300.00$ $ 757,300.00 246,512.17$ 37,112.59$ 283,624.76$ 27,000.00$ 52,000.00$ 28,000.00$ 12,000.00$ 12,000.00$ 414,624.76$ 38,000.00$ 59,000.00$ 27,000.00$ 124,000.00$ 538,624.76$

15 DED for Mamminasata, South Sulawesi DGHS IPM Watsan 1,404,694.00$ $ 1,404,694.00 208,175.15$ 311.07$ 208,486.22$ 200,000.00$ 180,000.00$ 200,000.00$ 100,000.00$ 888,486.22$ 100,000.00$ 100,000.00$ 200,000.00$ 1,088,486.22$

16 MTEF Road Sector DGH P&R Transport 384,300.00$ $ 384,300.00 38,637.13$ 60,584.95$ 99,222.08$ 91,000.00$ 51,000.00$ 23,000.00$ 29,000.00$ 29,000.00$ 322,222.08$ -$ 322,222.08$

17 GIS Definition Study Bappenas P&R Policy & Invest 80,000.00$ $ 80,000.00 78,774.87$ 78,774.87$ 78,774.87$ -$ 78,774.87$

18 Urban Water Supply in NTT LG IPM Watsan 99,175.00$ $ 99,175.00 73,750.94$ 10,353.20$ 84,104.14$ 16,000.00$ 100,104.14$ -$ 100,104.14$

19 PSO Policy Reform - Infrastructure Provision Bappenas P&R Policy & Invest 300,000.00$ $ 300,000.00 67,316.70$ 51,275.78$ 118,592.48$ 80,000.00$ 65,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 413,592.48$ -$ 413,592.48$

20 Success Fee mechanism for PPP Bappenas P&R Policy & Invest 67,600.00$ $ 67,600.00 67,925.73$ -$ 67,925.73$ -$ -$ 67,925.73$ -$ 67,925.73$

21 Assessment of Infrastructure Policy Reform CMEA P&R Policy & Invest 160,000.00$ $ 160,000.00 86,024.01$ 9,827.07$ 95,851.08$ 20,000.00$ 30,000.00$ 145,851.08$ -$ 145,851.08$

22 Papua/West Papua Infrastructure Planning LG P&R Policy & Invest 1,500,000.00$ $ 1,500,000.00 235,232.31$ 37,528.36$ 272,760.67$ 70,000.00$ 70,000.00$ 70,000.00$ 70,000.00$ 70,000.00$ 622,760.67$ 70,000.00$ 70,000.00$ 70,000.00$ 210,000.00$ 832,760.67$

23 National Ports Master plan stage 1 DGST P&R Transport 104,125.00$ $ 104,125.00 104,125.00$ -$ 104,125.00$ -$ -$ 104,125.00$ -$ 104,125.00$

44 Community Based Water Supply Services Bappenas IPM Watsan $ 1,200,000.00 -$ 200,000.00$ 150,000.00$ 150,000.00$ 500,000.00$ -$ 500,000.00$

71 Wastewater master plan in 4 cities DGHS P&R Watsan 101,590.00$ $ 101,590.00 11,300.00$ 8,640.96$ 19,940.96$ 20,000.00$ 30,000.00$ 69,940.96$ -$ 69,940.96$

128 MOF Regional Grants for Infrastructure MOF P&R Policy & Invest 299,290.00$ $ 300,000.00 11,223.71$ 18,378.92$ 29,602.63$ 80,000.00$ 90,000.00$ 199,602.63$ 40,000.00$ 40,000.00$ 239,602.63$

151 WSI - Socialisation & Public Awareness, baseline study DGHS IPM Watsan 500,000.00$ $ 550,000.00 -$ 100,000.00$ 150,000.00$ 150,000.00$ 50,000.00$ 450,000.00$ -$ 450,000.00$

152 National Rail Master plan Study stage 1 DGR P&R Transport 99,100.00$ $ 99,100.00 52,798.79$ 9,740.66$ 62,539.45$ 62,539.45$ -$ 62,539.45$

153 Assistance to DG Highways DGH P&R Transport 55,460.00$ $ 55,460.00 54,234.27$ 54,234.27$ 54,234.27$ -$ 54,234.27$

154 Activity Preparation and Design Fund Other Other Other 250,000.00$ $ 250,000.00 88,551.73$ 27,916.42$ 116,468.15$ 15,000.00$ 15,000.00$ 30,000.00$ 30,000.00$ 30,000.00$ 236,468.15$ 30,000.00$ 30,000.00$ 266,468.15$

156 Umbalan Springwater PPP DGHS IPM Policy & Invest 647,500.00$ $ 647,500.00 110,979.89$ 234,150.96$ 345,130.85$ 81,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 726,130.85$ 100,000.00$ 200,000.00$ 300,000.00$ 600,000.00$ 1,326,130.85$

157 National Rail Master plan Stage 2 DGR P&R Transport 491,500.00$ $ 491,500.00 99,649.85$ 154,192.21$ 253,842.06$ 60,000.00$ 60,000.00$ 373,842.06$ -$ 373,842.06$

164 Water Hibah and Wastewater Design DGHS IPM Watsan 464,973.00$ $ 464,973.00 172,507.33$ 23,349.32$ 166,415.04$ 30,000.00$ 196,415.04$ -$ 196,415.04$

165 National Ports Master plan Stage 2b DGST P&R Transport 121,980.00$ $ 123,000.00 34,900.54$ 81,855.68$ 116,756.22$ -$ -$ 116,756.22$ -$ 116,756.22$

166 National Ports Master plan Stage 2a DGST P&R Transport 92,300.00$ $ 92,300.00 41,535.00$ 50,765.00$ 92,300.00$ -$ -$ 92,300.00$ -$ 92,300.00$

172 Transport Systems PPP training Other P&R Transport 36,000.00$ $ 36,000.00 29,563.12$ -$ 29,563.12$ -$ -$ 29,563.12$ -$ 29,563.12$

173 Padang Earthquake Relief Assistance Other IPM Watsan 70,000.00$ $ 70,000.00 1,757.49$ 1,757.49$ -$ -$ 1,757.49$ -$ 1,757.49$

174 Lead Roads Advisor DGH DGH P&R Transport 210,200.00$ $ 215,000.00 1,509.60$ 1,509.60$ 32,000.00$ 32,000.00$ 35,000.00$ 35,000.00$ 35,000.00$ 170,509.60$ 40,000.00$ 40,000.00$ 40,000.00$ 120,000.00$ 290,509.60$

175 Bus Rapid Transport Development in Select Cities LG IPM Transport 165,000.00$ $ 165,000.00 1,091.57$ 5,290.18$ 6,381.75$ 50,000.00$ 40,000.00$ 50,000.00$ 146,381.75$ 50,000.00$ 50,000.00$ 50,000.00$ 150,000.00$ 296,381.75$

178 Jatiluhur - Jakarta Pipeline and Water Treatment Plant DGHS IPM Policy & Invest 75,000.00$ 75,000.00$ -$ 86,000.00$ -$ 100,000.00$ 200,000.00$ 200,000.00$ 586,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 600,000.00$ 1,186,000.00$

176 Provincial and Kabupaten Road Maintenance Management Plans DGH P&R Transport 157,063.00$ 995,000.00$ -$ -$ 60,000.00$ 50,000.00$ 45,000.00$ 155,000.00$ 20,000.00$ 110,000.00$ 100,000.00$ 230,000.00$ 385,000.00$

180 Assessment of Air Traffic Management Strategic Policy DGCA P&R Transport 504,000.00$ 504,000.00$ -$ -$ -$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 400,000.00$ 100,000.00$ 100,000.00$ 500,000.00$

181 MOT lead adviser MOT P&R Transport 98,950.00$ 98,950.00$ -$ 10,000.00$ 15,000.00$ 20,000.00$ 20,000.00$ 20,000.00$ 85,000.00$ 14,000.00$ 20,000.00$ 20,000.00$ 54,000.00$ 139,000.00$

182 National Port Master Plan (Stage 3) DGST P&R Transport 586,800.00$ 586,800.00$ -$ 50,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 450,000.00$ 100,000.00$ 100,000.00$ 550,000.00$

183 Improving Support Needs for Urban Water Supply in NTB and NTT LG IPM Watsan 155,150.00$ 950,000.00$ -$ 30,000.00$ 30,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 210,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 150,000.00$ 360,000.00$

New and proposed activities

Hibah stage 2 40,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ 160,000.00$ 40,000.00$ 40,000.00$ 200,000.00$

BLU socialisation and development 40,000.00$ 30,000.00$ 30,000.00$ 30,000.00$ 130,000.00$ 30,000.00$ 30,000.00$ 160,000.00$

Reform of Implementation Organization 15,000.00$ 35,000.00$ 35,000.00$ 85,000.00$ -$ 85,000.00$

Support for ATCS in Surabaya 45,000.00$ 15,000.00$ 60,000.00$ 30,000.00$ 30,000.00$ 90,000.00$

Support for Development of DGH 5 Year Program (from MTEF) 200,000.00$ 250,000.00$ 250,000.00$ 700,000.00$ 250,000.00$ 250,000.00$ 950,000.00$

Development of Asset Level Project Programming Tool 50,000.00$ 50,000.00$ 130,000.00$ 230,000.00$ 130,000.00$ 130,000.00$ 260,000.00$ 490,000.00$

Development of Road Maintenance Practices and Delivery 80,000.00$ 80,000.00$ 80,000.00$ 240,000.00$ -$ 240,000.00$

Expressway Organisation Review -$ 35,000.00$ 35,000.00$ 70,000.00$ 70,000.00$

Support to IRMS Decentralisation 30,000.00$ 35,000.00$ 35,000.00$ 100,000.00$ -$ 100,000.00$

Road Infrastructure Corridor Development 50,000.00$ 100,000.00$ 150,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 300,000.00$ 450,000.00$

Improving Trunk Routes -$ 100,000.00$ 100,000.00$ 200,000.00$ 200,000.00$

Upgrading Reclassified/Strategic Roads -$ 50,000.00$ 200,000.00$ 250,000.00$ 250,000.00$

Procurement/Activity Design Support 20,000.00$ 35,000.00$ 35,000.00$ 35,000.00$ 125,000.00$ 35,000.00$ 35,000.00$ 15,000.00$ 85,000.00$ 210,000.00$

FIDIC Training -$ 75,000.00$ 75,000.00$ 75,000.00$

HIV/AIDS -$ 75,000.00$ 75,000.00$ 75,000.00$

Good Roads/Bad Roads -$ 75,000.00$ 75,000.00$ 75,000.00$

Blackspot Program Implementation -$ 75,000.00$ 75,000.00$ 75,000.00$

Road Safety Audit - Projected 30,000.00$ 60,000.00$ 90,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ 180,000.00$ 270,000.00$

Continuation of Radio Spectrum 40,000.00$ 40,000.00$ 80,000.00$ 40,000.00$ 40,000.00$ 20,000.00$ 100,000.00$ 180,000.00$

Financial reform DGPT 50,000.00$ 100,000.00$ 100,000.00$ 250,000.00$ 50,000.00$ 50,000.00$ 300,000.00$

Corporate Plan DGPT -$ 100,000.00$ 100,000.00$ 100,000.00$ 300,000.00$ 300,000.00$

IT Plan DGPT 50,000.00$ 100,000.00$ 150,000.00$ 100,000.00$ 100,000.00$ 200,000.00$ 350,000.00$

Design of Ground Water Survey -$ -$ -$

Design of LG/PDAM Performance Index -$ -$ -$

Implementation of Ground Water Survey 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 300,000.00$ 400,000.00$

Implementation of LG/PDAM Performance Index 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 150,000.00$ 200,000.00$

Kupang Solid Waste IEG 250,000.00$ 250,000.00$ 250,000.00$ 250,000.00$ 500,000.00$

Denpasar Sewerage IEG 300,000.00$ 300,000.00$ 300,000.00$ 300,000.00$ 600,000.00$

Jakarta PDPAL IEG 200,000.00$ 200,000.00$ 300,000.00$ 300,000.00$ 500,000.00$

New Railway Activity 25,000.00$ 25,000.00$ 50,000.00$ 50,000.00$

New Port Activity 25,000.00$ 25,000.00$ 50,000.00$ 50,000.00$

BRT IEG AP Tranche 1 Infra Investment 3/4 cities 500,000.00$ 500,000.00$ 1,000,000.00$ 1,000,000.00$

-$ -$ 225,000.00$ 545,000.00$ 1,375,000.00$ 1,305,000.00$ 3,450,000.00$ 1,220,000.00$ 2,080,000.00$ 1,745,000.00$ 5,045,000.00$ 8,495,000.00$

TOTAL 15,021,371.00$ 18,275,276.00$ 4,943,962.95$ 1,097,290.54$ 6,014,588.07$ 1,313,000.00$ 1,740,000.00$ 2,256,000.00$ 2,966,000.00$ 2,701,000.00$ 16,990,588.07$ 2,427,000.00$ 3,314,000.00$ 2,697,000.00$ 8,438,000.00$

CUMULATIVE TOTAL 6,041,253.49$ 7,327,588.07$ 9,067,588.07$ 11,323,588.07$ 14,289,588.07$ 16,990,588.07$ 2,427,000.00$ 5,741,000.00$ 8,438,000.00$ 25,428,588.07$

Approved Budget (TT)

Forecast expenditure Approved Budget (AusAID)

CC Theme ComponentActivity

No.Activity Title Counterpart

ausaid document

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