Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 16609

IMPLEMENTATION COMPLETION REPORT

INDONESIA

PUBLIC WORKS INSTITUTIONAL DEVELOPMENT AND TRAINING PROJECT

(LOAN NO. 3112-IND)

May 23, 1997

Population and Human Resources Division

Country Department IIIEast Asia and Pacific Regional Office

This document has a restricted distribution and may be used by recipients only in theperformance of their official duties. Its contents may not otherwise be disclosed withoutWorld Bank authorization.

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CURRENCY EQUIVALENT

Currency Unit = Indonesian Rupiah

At Appraisal in 1989

Rp.1700 = US$1.00Rp.1 million= US$588

Annual Average

1990 1991 1992 1993 1994 1995 1996

1,843 1,950 2,030 2,080 2,160 2,237 2,372

FISCAL YEAR OF BORROWER

April 1 - March 31

ABBREVIATIONS AND ACRONYMS

BAPPEDA - Provincial Development Planning Agency

BAPPENAS - National Development Planning AgencyDG - Directorates GeneralDINAS PUP - Provincial (Level 1) Public Works DepartmentIDTP - Public Works Institutional Developmcnt and Training

ProjectIOE - In-Office Expert

KANWIL - Kantor Wilayah (provincial office of Central

Government Ministries)MIS - Management Information SystemMPW - Ministry of Public WorksMDP - Manpower Development ProjectPIU - Project Implementation UnitPMU - Project Management UnitPP - Peraturan Pemerintab (Government Regulation)

PUSDATA - Center for Data Processing, Ministry of Public WorksPUSDIKLAT - Center for Staff Training, Ministry of Public WorksRTC - Regional Training Center

SG - Secretary GeneralSAR - Staff Appraisal Report

TA Technical Assistance

Vice President: Jean-Michel Severino, EAPDirector: Marianne Haug, EA3Division Chief: Samuel Lieberman, EA3PHStaff: Brigitte Duces. EA3PH

FOR OFFICIAL USE ONLY

Table of Contents

Page No.Preface i

Evaluation Summary ii

Part I: Project Implementation AssessmentA. Statement/Evaluation of Objectives 1B. Achievement of Objectives 2C. Major Factors Affecting the Project 7D. Project Sustainability 7E. Bank Performance 8F. Borrower Performance 8G. Assessment of Outcome 8H. Future Operations 9I. Key Lessons Learned 9

Part II: Statistical TablesTable 1 Summary of Assessments 11Table 2 Related Bank Loans 13Table 3 Project Timetable 14Table 4 Loan Disbursements 14Table SA Key Performance Indicators 15Table SB List of Overseas Training Courses of IDTP 16Table SC Allocation of Priority Staff Training Program 17Table 6 Studies included in Project 18Table 7A Project Costs 19Table 7B Project Financing 20Table 8 Status of Legal Covenants 21Table 9 Bank Resources: Staff Inputs 23Table 10 Bank Resources: Missions 24

Annex 1 Status of Decrees 25Annex 2 Numbers of graduates in Kanwils 27Annex 3 Key Documents produced under the Project 28Annex 4 Summary Status of Technical Assistance 30Appendix A: Borrower Contribution to the ICR

including the Operational Plan 32

MapNo. IBRD 21404

This document has a restricted distribution and may be used by recipients only in theperformance of their official duties. Its contents may not otherwise be disclosed withoutWorld Bank authorization.

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IMPLEMENTATION COMPLETION REPORTINDONESIA

PUBLIC WORKS INSTITUTIONAL DEVELOPMENT AND TRAINING PROJECT

(Loan No. 3112-IND)

Preface

This is the Implementation Completion Report (ICR) for the Public Works InstitutionalDevelopment and Training Project in Indonesia, for which Loan No. 3112-IND in the amount ofUS$36.1 million equivalent was approved on July 25, 1989 and made effective on November 15,1989.

The loan closed on December 31, 1996, a year later than the original closing date of December31, 1995. By April 30, 1997, 98% of the loan was disbursed.

The ICR was prepared by Ms. Rozany Deen of the Population and Human Resource Division,Country Department 111 of the East Asia and Pacific Region. It was reviewed by Mr. SamuelLieberman, Chief, Population and Human Resources Operations Division and Mr. Oscar de BruynKops, Acting Operations Advisor, Country Department m. The Borrower has reviewed the document.

Preparation of this ICR was begun during the Bank's completion mission in October 1996.Preparation was based on material in the project files, field visits and reports received from the ProjectManagement Unit. The Borrower's evaluation of the project and its Operational Plan for the future isattached as Appendix A.

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IMPLEMENTATION COMPLETION REPORT

INDONESIA

PUBLIC WORKS INSTITUTIONAL DEVELOPMENT AND TRAINING PROJECT

(LOAN NO. 3112-IND)

Evaluation Summary

Introduction

i. The Public Works Institutional Development and Training Project (IDTP) was developed tosupport the Ministry of Public Works (MPW's) nascent efforts at deconcentration1 anddecentralization2 in the late 1980's. MPW's intent was to improve efficiency and effectiveness in thepublic works sector by transferring increased responsibilities for planning, design, budgeting, andimplementation of public works programs from central government to the provincial and localgovernments. The central government retained responsibility for national policies and projects andtechnical supervision and control. The national framework for decentralization was laid down in LawNo. 5 of 1974. The impetus and basis for IDTP was PP14/87, a regulation which outlined a broadrange of public works responsibilities to be transferred from the central to the other levels, andPP6/88 which required the central and local agencies to coordinate their efforts through the provinciallevel. The project also built on investments for the development and management of training programsand facilities financed under the Public Works Manpower Development Project (MDP - Loan No.2258-IND), its predecessor.

Project Objectives

ii. The project's objectives were: (a) to improve the coordination of planning and theimplementation of public works activities by staff development and improved management informationand other systems; and (b) assist the Government of Indonesia (GOI) in the implementation of policiesfor deconcentration and decentralization of responsibilities for public works. The project had threecomponents to support the objectives: (1) Staff and Institutional Development; (2) Improvement ofManagement Systems and Procedures; and (3) Improvement of the Quality Control of Construction.The major focus of the assistance was the provincial level public works departments (Kanwil andDinas PUP). Support for the local governments was envisaged under another project, for whichpreparatory funds were included in IDTP.

"Deconcentration" is defined as the delegation of authority for services from the central MPW to itsrepresentatives at the provincial level (Kanwil).

2 "Decentralization" is defined as the transfer of responsibilities for services from the central or provincial MPWoffices to the local governments (districts/municipalities).

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Project Implementation and Outcomes

iii. The project is rated as satisfactory. It was successful in achieving its objective of improvingthe coordination of planning and programming of public works activities. It was largely successful,although there are shortcomings, in addressing the organizational, technical and staffing problemsrelated to MPW in its efforts to deconcentrate. The main shortcomings related to the underutilizationof laboratories and non-completion of activities under the training component. When the projectbegan, MPW was a highly centralized organization, with inadequate cooperation and coordinationamongst the three major Directorates General (Highways, Water Resources and Human Settlements)and between the Directorates General and key Bureaus under the Secretary General (SG). Therewere many weaknesses in staffing and personnel systems; lack of trained staff in the provinces; poortraining programs; inadequate and incompatible information systems; and limited facilities for qualityassurance. At the end of the project, many of these issues had been addressed and all key changesintroduced were institutionalized as national policies.

iv. The project successfully met many of its objectives for developing and implementing policiesfor deconcentration and providing staff development and support systems. The most significant successin the staff and institutional development component was that the role and functions of the Kanwilwere defined, with the coordination of planning and programming of public works activities in theprovinces deconcentrated to a strengthened Kanwil. The Kanwil was also given authority for theoverall technical supervision, control and guidance of all public works activities at this level. Inaddition, staff planning, career development, job analyses and performance appraisal systems weredeveloped following the establishment of a comprehensive personnel information system. The Kanwilwas also substantially staffed with people of a higher technical and administrative capability to fulfill itsnew duties.

v. A number of management systems and procedures were designed and developed under theproject. A major new system called the Decision Support System/Analytical Hierarchy Process (AHP)was introduced for planning annual public works programs and projects. This system assigns prioritiesand ranking for projects according to agreed provincial and national weights and criteria. This systemis implemented by the Kanwil at the provincial level and by the Bureau of Planning at the nationallevel. The result of the AHP process is a coordinated prograrn of public works activities with a singlebody responsible for financial negotiations on the investment program. As the AHP has been graduallyintroduced nationally, and involves fundamental behavioral and attitudinal changes in itsimplementation, it may not be fully operational and effective as yet at the provincial levels. However,the introduction of the AHP is a major improvement relative to the previous lack of a cohesive nationalsystem. It went far beyond the project objective, which was the development of a manual.

vi. Additionally, a standardized and core Management Information System (MIS), supporting thepersonnel and planning processes, a national financial accounting system, and a project monitoring andevaluation system were also introduced. Improved systems for foreign aid coordination, project andperformance audits, legal data bases, better library and archive facilities, greater efficiency inprocurement and improved public relations also resulted from project activities.

vii. The concentration on the Kanwil meant that much more limited support was provided to theDinas PUP under the project, which was a major change in project scope. The role of the Dinas PUP

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still appears to be evolving, but there has clearly been a diminution of functions as their districtoffices have been abolished with staff and equipment expected to be absorbed into the localgovernments.

viii. A objective of improving the quality assurance system for provincial laboratories for the testingof soil, water, and materials, as needed for construction works projects, was implemented underIDTP. This was done through the construction of laboratories, provision of equipment and training ofpersonnel. An accreditation system to ensure that each laboratory is maintained at set standards wasdeveloped and applied. However, this component has shortcomings. The utilization of thelaboratories is only about 40%-50%, maintenance appeared inadequate in facilities visited, andalthough the laboratories were expected to provide testing for public and private clients, the latter hasonly been implemented to a very limited extent due to lack of marketing.

xi. The training management component3 objectives of upgrading training, improving itsmanagement and effectiveness, and coordinating and integrating all public works training programswere only partially met. The project successfully restructured the Center for Training (PUSDIKLAT),improved the coordination of all public works training, developed curricula and training methods, and aset of specialist instructors. However, a fully integrated training program for staff at all levels, thedevelopment of a training management information system for analyzing outcomes, costs and budgets,greater utilization of training centers and the implementation of distance learning programs are still tobe achieved. The Borrower's Operational Plan indicates that work to complete this component as wellas to improve the utilization of laboratories will be continued after project closing.

x. The only performance indicator outlined in the SAR to measure outcomes was the numbers ofstaff trained. This has exceeded SAR targets but the effectiveness of training programs, expected to beundertaken by PUSDIKLAT above, remain to be assessed. Nevertheless, as discussed in the aboveparagraphs, it is clear that there has been substantial progress in meeting other project developmentobjectives.

xi. Bank performance was satisfactory and Borrower Performance highly satisfactory duringproject implementation. The major procurement issue was related to negotiations on costs ofconsultancy contracts which delayed implementation by a year. Project innovations appear sustainable.Many of the interventions have been institutionalized through Ministerial and other Decrees, and theBorrower's Operational Plan contains provisions to maintain, upgrade, and finance most of the system-wide investment program supported by IDTP. The Operational Plan also indicates MPW's intent toextend the systems, as appropriate, to support more recent decentralization policies which transfermajor implementation responsibilities, including finance, to the local governments. Thesedevelopments should be monitored as indicators of sustainability. It should be noted that although thesystems are in place and largely operational, the full impact of IDTP in terms of effectiveness,efficiency and increased productivity in public works activities cannot be fully assessed now. Itshould be reviewed and supported through other Bank-financed MPW projects under implementation,and a comprehensive assessment made in a few years' time.

3Training is part of the Staff and Institutional Development group of components but is discussed separately givenits importance to the project.

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Future Operations and Key Lessons Learned

xii. The project has continued a process, begun under MDTP, that is long-term. The project didprovide for studies and the preparation of future local government institutional and staff developmentprojects to support the further devolution of activities to the local governnent level. The latter projectsdid not eventuate due to lack of broad-based Government support. Currently, there is no follow-upproject for IDTP, although sector work on capacity building to support the accelerated decentralizationpolicies is planned.

xiii. The project provides the Bank and Borrower with a number of lessons. Among them thefollowing are emphasized: (a) support for major institutional processes such as deconcentration anddecentralization requires a vision of a final outcome, and a phased set of projects to reach thisobjective. Each individual project and its impact can only be measured as part of this process. MDP,IDTP and the proposed local government projects comprised such a long-term program. In hindsight,it is regrettable that the program did not eventuate since, if it had, the local governments would havebeen more ready to undertake activities as increasing responsibilities were decentralized to their levelover time; (b) the need for flexibility and adaptation as national changes overtake the more focusedsectoral changes that are generally built into a project; (c) the importance of strong, effective andcommitted project management for effective implementation; (d) the need for clear projectperformance indicators to measure progress and outcomes, particularly measures for assessing theeffectiveness of large TA components, as well as independent impact assessments, including tracerstudies, for the training programs; and (e) the need for greater dissemination of individual sectorexperiences in decentralization, both in the Bank and GOI, to guide future work as decentralizationpolicies continue to evolve in Indonesia.

IMPLEMENTATION COMPLETION REPORT

INDONESIA

PUBLIC WORKS INSTITUTIONAL DEVELOPMENT AND TRAINING PROJECT

(Ln. 3112-IND)

PART 1: PROJECT IMPLEMENTATION ASSESSMENT

PROJECT REVIEW

A. Statement/Evaluation of Objectives

1. The objectives of the Public Works Institutional Development and Training Project (IDTP)were: (a) to improve the coordination of planning and implementation of public works activities by staffdevelopment and improved management information and other systems; and (b) assist the Governmentof Indonesia (GOI) in the implementation of policies for deconcentration and decentralization ofresponsibilities for public works to provincial and local government levels. It was felt that successfulimplementation of GOI's decentralization plans were important for the preservation of the existingstock of public infrastructure assets and for the effectiveness of future development plans in the sector.

2. The project objectives were placed within the context of the nascent efforts at deconcentrationand decentralization and the changed functions of the Ministry of Public Works (MPW) that wereemerging during the late 1980's. The major focus of the assistance was the provincial (Level 1) publicworks departments. Support for the local governments (Level II) was envisaged under another project,for which preparatory funds were included in IDTP.

3. The project had three components:

a) Staff and Institutional Development through strengthening the Provincial Offices of CentralGovernment Ministries (Kanwil) and the Provincial Public Works Department (DinasPUP) by implementing: (i) improved systems for staff planning, personnel information,career development, job analysis and performance appraisal, (iii) strengthening staff tofacilitate the transfer of responsibilities; and (iii) upgrading staff training including thecoordination of the total program of public works training;

b) Improvement of Management Systems and Procedures including: (i) use of a standardizedcore management information system; (ii) improved coordination of planning andprogramming of public works activities and uniform reporting; and (iii) improved foreignaid collaboration; financial planning and management; control and performance audits;procurement; legal functions; libraries; archives and public information activities; and

c) Improvement of the Quality Control of Construction through upgrading of 184 provinciallaboratories testing facilities, and the establishment of accreditation systems to ensurelaboratory standards.

4 The upgrading of the remaining 9 provinces was undertaken under the Irrigation Subsector Project (Ln.2880-IND)

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4. The objectives and content of the project were consistent with the Government's strategy atthe time to transfer broad responsibilities for planning, design, budgeting, and implementation ofprojects from central to provincial and local governments. The central government retained theresponsibility for national policies and projects and for technical guidance and supervision. The nationalframework for decentralization was laid down in Law No. 5 of 1974, while the sectoral policies werelaid down in subsequent ministerial decrees and regulations. The impetus and basis for lDTP was PP14/87, a government regulation specifying the transfer of a broad range of public worksresponsibilities from central to the lower levels, and PP 6/88 which placed the responsibility forpreparation of an integrated program of infrastructure and service development with the provincialgovernors, and required central and local agencies to coordinate their efforts through the provinciallevel.

5. Although the pace and specifics of the decentralization process had not been fully formulatedand developed, Bank dialogue and projects in the public works sector such as the Integrated UrbanInfrastructure Development Programs (Loan No. 2816-IND) approved in FY87, had been importanttools in the evolution of the strategies. IDTP was designed as a complementary measure to improvehuman resource capacity as well as establish the systems and procedures to enable MPW and theprovincial staff to effectively manage and integrate public works activities in line with the aboveregulations. It was also responding to major themes in Project Completion Reports and ProjectPerformance Audit Reports for Bank financed public works projects, which had highlighted manystaffing and institutional weaknesses that had hampered public works activities and delayed projectimplementation. The project was also building on investments for the development of staff trainingprograms, systems and procedures developed under the Public Works Manpower Development Project(MDP - Loan 2258-IND), its predecessor. Additionally, recognizing that decentralization is a long-term process, IDTP had provided support for the continuing devolution of responsibilities throughprovision of funds for the development offuture projects to support the institutional development oflocal government staff

6. The project was appraised in November 1988 and became effective in November 1989. Thecontinuing GOI decrees and regulations being issued on decentralization had a major impact on theproject objectives. The SAR had indicated that the decrees and regulations, which were in draft or stillunder preparation at the commencement of the project, would introduce a degree of uncertaintypending their finalization and could necessitate adjustments to project activities and timing. This didoccur during implementation. As it became evident that GOI was devolving increasing responsibilitiesto the local governments for planning and implementing public works, particularly with the issuance ofthe government regulation PP45/92, the project objectives and focus changed. First, assistance wasconcentrated on the Kanwil with much more limited support than envisaged in the SAR being providedto the Dinas PUP (para. 16). Additionally, components such as the management information systemand assistance for the coordination of programming and planning, were expanded from the originalminimum core nine provinces to become national interventions to support the policy changes. Theproject also required a year's extension of the Closing Date from December 31, 1995 to end December1996 due to a delayed start in two consultancy packages.

B. Achievement of Objectives

7. IDTP was successful in achieving its objective of improving the coordination of planning andprogramming of public works activities. It was largely successful, although there are shortcomings, inaddressing the organizational, technical and staffing problems related to MPW in its efforts todeconcentrate and transfer functions and responsibilities from the central MPW to the Kanwil. Further,

although not explicitly indicated as a project objective, the project also strengthened the office of theSecretary General (SG) and its Bureaus at the center. Nearly all the key changes introduced under theproject are now institutionalized national policies (Annex 1).

8. MPW activities are the responsibility of three separate Directorates General (DG's), eachreporting directly to the Minister. These are: (a) Bina Marga (highways); (b) Pengairan (waterresources) and (c) Cipta Karya (human settlements). There are also several Bureaus reporting to theSG. They are responsible for Personnel, Planning, Finance, Foreign Aid Coordination, Legal Support,Logistics, General Affairs as well as the Center for Training (PUSDIKLAT), ManagementInformation Systems (PUSDATA) and the Inspectorate General.

9. When the project began, MPW was a highly centralized organization, with project work beingplanned, budgeted, managed and supervised from each of the DG's offices. There was inadequatecooperation and coordination amongst the individual DG's and between the DG's and Bureaus; manyweaknesses in staffing and personnel systems; lack of trained staff in the provinces; poor trainingprograms; inadequate and incompatible information systems; limited facilities for quality assurance;and in many provinces the Kanwils and Dinas PUP were weak.

10. The project dealt with all these issues and, thus, was complex. There were multiple activitiesand the classification system developed during implementation identified 13 components includingproject management. The components were as follows: a) Personnel (Component 1); b) Strengtheningof Kanwil and Dinas (Component 2); c) Management of Training (Component 3); d) ManagementInformation System (Component 4); e) Programming and Planning (Component 5); 1) Foreign AidCoordination (Component 6 ); g) Finance (Component 7 ); h) Audits (Component 8); i) Legal(Component 9); j) Logistics (Component 10 ); k) Libraries, Archives and Public Information(Component 11); 1) Laboratories (Component 12 ; and m) Project Management (Component 13).

11. The following evaluation discusses the separate components largely under the broad groupingsof the SAR: (i) Staff and Institutional Development (Components 1 and 2); (ii) Management Systemsand Procedures (Components 4-11); (iii) Quality Control of Construction (Component 12); and (iv)Management of Training (Component 3).

Staff and Institutional Development

12. The project was successful in meeting the major objectives of implementing policies fordeconcentration and providing staff development and support systems. The most significant successwas that the role and functions of the Kanwil were defined with the coordination of planning andprogramming of public works activities in the provinces deconcentrated to a strengthened Kanwil. TheKanwil was also given authority for the overall technical supervision and control ("wastek") andguidance ("bintek") of all public works activities at this level. All necessary Ministerial regulations toinstitutionalize the Kanwils new responsibilities were implemented.

13. The Kanwils were substantially staffed to meet their needs in fulfilling the new duties. Staff ofhigher technical and administrative competence were appointed, including staff reallocated from thecenter. Although the project had proposed that 650 technical and administrative staff be transferredfrom the central to the provincial offices over the life of the project, only about 110 staff were actuallytransferred. However, the numbers of graduates at the Kanwil were increased from 488 in 1992 to1050 in 1996, an increase of 562 or 115% (Annex 2). This was not incompatible with the SAR, which

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had also indicated that relocation of central staff would only take place if training of local staff wouldbe inadequate to raise their expertise to the required level.

14. The improvement of staff management was also achieved. A comprehensive personnelinformation system covering all MPW professional, technical and administrative staff engaged inpublic works activities was established and is now operational. The system supports careerdevelopment, job analysis and performance appraisal, all of which are now in routine use. The Kanwiladministers this system for the province and district level in coordination with the center. Functionaljobs for career streams such as engineering, architecture and surveying which were developed togetherwith the Ministry of Administrative Reform are pending approval, while others have beenimplemented, for example, in the office of the Inspectorate General.

15. Supervision reports and field visits indicated more motivated and professional staff in theKanwil. In some cases, the Kanwils are already operating as the focal point for all public works in theprovinces. These achievements need to be contrasted with the Kanwil conditions before the projectstarted, when they were largely pro-forma regional representatives of the central office, badly staffedand with little real authority or decision making responsibility. Further, the delineation of the functionsof the Kanwil, including the fact that they are no longer responsible for implementation, has facilitatedthe transfer of such responsibilities to the local governments.

16. Whilst the Kanwil was strengthened, the decreased attention on the Dinas PUP followed theissuance of PP45/92, a government regulation which further devolved public works responsibilities tothe local governments. The role of the Dinas PUP still appears to be evolving, but there has clearlybeen a diminution of their staffing and functions as their district offices (Cabang Dinas) have nowbeen abolished and much of their staff and equipment will be absorbed into the local governments. Atthe time of PP45/92, it was also expected that another Bank financed project would assist GOI todevelop the human resources and institutional capabilities of all Dinas staff. This was the proposedLocal Government Institutional and Staff Development Project which, however, did not eventuate dueto lack of broad-based GOI support.5

Management Systems and Procedures

17. Many management systems and procedures were introduced to improve the efficiency ofpublic works programs, provide for a more coordinated system between center and the Kanwil, andsupport the changed functions of the latter. Some of these systems were developed under MDP andwere adapted and expanded under the project.

18. The major project objective of improving the planning and coordination of public workactivities is being implemented through the introduction of the Decision Support SystemlAnalyticalHierarchical Process (AHP). Currently the AHP represents a systematic approach for prioritizationand coordination of public works programs financed by the central budget with local budgets expectedto be incorporated in the future. Initially, sub-sectoral programs are analyzed using systems like IRMS(Interurban Road Management System) or KREEM (Kabupaten Roads Economic Evaluation Module).They are then ranked at the provincial and national levels using AHP and taking into account criteriaand weights agreed by teams including the Kanwil, Dinas, and planning offices (BAPPEDAS). A finalinvestment program is then determined, with the Bureau of Planning responsible for negotiations withBAPPENAS and the Ministiy of Finance. The ABP has proved an important tool for constructive

5The study and development of future local government projects is specified in the Loan Agreement (Schedule 2,Part A,4) but not clearly identified in the SAR.

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participation at many levels, a synchronized program rather than past vertical programs of individualDG's, and a single body representing MPW in key negotiations on the program. The scope of theAHP was also expanded from the original nine provinces to a national intervention. As the AHP hasbeen gradually introduced nationally, and its implementation involves fundamental behavioral andattitudinal changes, it may not be fully operational and effective as yet in all provinces. However, AHPwent far beyond the objective for this component, which was the production of a manual to deal withcoordination linkages within the public works program.

19. Improvements were also introduced in other systems. The Management Information System(MIS) was completely overhauled during the project period, a standard core system developed in placeof the multiple systems previously in use, and the system extended from the center to the provinces.6

The MIS included a number of sub-systems which were developed and then integrated into the coresystem. This included an integrated financial management and information system, using the newnational accounting system, to enable the Kanwils to monitor and report on the use of developmentbudgets; a project monitoring and evaluation system, which provides feedback to the ABP; and legaldata bases for the central as well as provincial and local governments. It also included bibliographicaldata bases and improved library networks; and better systems for foreign aid coordination through theefficient monitoring of the status of on-going programs and projects assisted by foreign loans or grants.PUSDATA has also developed PU-Net, which includes the MPW home page on the World WideWeb, E-Mail facilities and INTERNET access for Kanwil staff. All MIS systems are operational andwere being utilized during field visits. But there is a need for more rationalization and improvementsto the MIS, since there appears to be duplication in some areas and greater integration is required withthe DG's systems. In addition some of the system development, such as the establishment of the legaldata bases, will still require a substantial amount of work following loan closure. It is, however, clearthat the development of a standardized national MIS system, with compatible hardware and softwareand links between the center and the Kanwil, has been an important project achievement.

20. Other improvements introduced under the project included the implementation of performanceand program audits in selected MPW projects since FY95/96; the upgrading and development of thearchive system and improved public information and publication activities. The objective of thelogistics component was the development of standard International and Local Competitive Biddingdocuments, acceptable to all funding agencies. The objective was met and MPW now provides thenational standards for procurement procedures and bidding and contract documents. However,MPW's work was made void twice (1993 and 1995) by the Bank issuing new standard documents,subsequent to MPW completing its own drafts based on previous reviews and discussions with theBank.

21. A substantial amount of project related training was provided with the overall man-monthstotal for the components exceeding the SAR targets (Table 5). Besides training for staff from thecenter and the Kanwil, the training included some support for the Dinas PUP staff and, in line with theSAR, limited training was provided to staff from the local governments. Although much of thetraining appears to have been responsive to needs as it is very component specific, the quality and cost-effectiveness of the training remains to be evaluated by PUSDIKLAT as part of its activities financedunder the project (para 24 below). A substantial number of manuals (169) were also produced underthe project. They included guidelines, handbooks and training manuals to ensure continuous operations

6 Funding for computers and associated equipment was also provided under the Highway Sector Loan (Loan No.3133-IND)

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support and future sustainability of the separate components. A summary list of some key manuals forindividual components are outlined in Annex 3. It should be noted that as nearly all of the managementsupport systems discussed above are computer based and technology driven, they would requirecontinuous updating and maintenance, which is indicated in the Borrower's Operational Plan.

Quality Control of Construction

22. The project objective of improved quality assurance in construction was to be provided throughthe provision of Kanwil laboratories for the testing of construction material. The construction oflaboratories, provision of equipment and training of personnel, were implemented in all provincesunder the project. The laboratories are carrying out tests in soil, water and basic construction materialsand, in many provinces, are the only locations where testing of reasonable quality can be carried out.An accreditation system, to ensure that each laboratory is maintained at set standards has beendesigned, and nearly all laboratories accredited to carry out a standard range of tests.

23. Nevertheless, there are shortcomings in this component. The utilization of the laboratories iscurrently estimated at about 40%-50% only, as many tests called for in project specifications andstandards do not appear to be carried out due to lack of enforcement. Maintenance of the laboratoriesis already a cause for concern, since buildings visited are deteriorating and funds for provision ofequipment maintenance seemed to be inadequate. Further, although the SAR envisaged cost-recoverythrough these laboratories providing services to MPW projects but also other private clients on a feepaying basis, this has only been achieved to a limited extent due to the lack of active marketing ofservices.

Management of TrainingR

24. The objectives of upgrading staff training and coordinating the local public works trainingprogram were only partially met and is a major shortcoming of the project. PUSDIKLAT wasrestructured during the project and the calibre of key and supporting staff significantly improved.Through the establishment of a work unit (balai), which is responsible for all project related and othertraining needs emanating from the DG's, the project achieved its objective of coordinating all publicworks training. Success was also achieved in improving curricula, the development of trainingtechniques, undertaking priority training programs and the establishment of a group of competentspecialist instructors. But other key objectives were not achieved. The implementation of a fullyintegrated training program for central MPW, Kanwil and Dinas staff was not met. The developmentof a training management information system and a comprehensive system for the evaluation oftraining, including analyzing costs, outcomes and budgets, has still to be completed, as has theproposed programs of distance learning. The six Regional Training Centers (RTC's) were expected tobe provincial centers for training, with annual programs and plans largely decided by the Kanwils.These changes have yet to be implemented and the training centers remain underutilized (usage isbetween 40%-60%).' These issues were raised by the supervision missions, and recommendations andaction plans formulated and agreed but only partially implemented. The Operational Plan indicates thatwork to complete this component, as well as to improve the utilization of laboratories, will becontinued after project closing.

7 These results are consistent with other findings. The recent report "Training and the Labor Market in Indonesia:Productivity Gains and Employment Growth" (Green Cover Report No. 14413-IND, dated June 7, 1996) alsoreports that capacity utilization of in-house educational and training institutions for civil servants remains low.

C. Major Factors Affecting the Project

Factors generally subject to government control

25. GOI policies on decentralization continued to evolve during project implementation withsignificant impact on the project objectives and scope. The two most significant changes were theconcentration on strengthening the Kanwil (para. 12) and the broadening of project innovations such asthe AHP to make them national in scope (para 18). These activities involved attitudinal and behavioralchange which needed the cooperation and support of all involved, and particularly at the provinciallevel. It would not have been successful without the announced policy support of the highest levels atMPW. Although MPW gave the strongest support to the institutional changes under the project, thelack of GOI support for the proposed Local Government Institutional and Staff Development Project is,in hindsight, regrettable (para 16). IDTP had specifically provided support for the continueddevolution of responsibilities to the local governments through such projects. If the project/s hadeventuated, it would have provided the complementary measures to strengthening public works (aswell as other sector) staff at the local govermments, while IDTP strengthened the Kanwil.

Factors generally subject to implementing agency control

26. The appointment of a full-time Project Management Unit (PMU), the establishment of ProjectImplementation Units (PmT's) for each of the sub-components and assignment of qualified anddedicated key counterpart staff greatly assisted successful project implementation. There wassubstantial use of foreign and local Technical Assistance (TA) (about 32% of the total project cost),since they were used to design and support implementation of all components. They were assisted atall times by counterparts or In-Office Experts (IOE's). The IOE's were able to interact with theconsultants on a daily basis, and this provided an effective system for the transfer of knowledge andexpertise from the TAs. The major procurement issue was related to negotiations on costs ofconsultancy contracts which delayed implementation by a year. Strict control was also maintained onTA performance with unsatisfactory consultants being removed from the project. In the absence ofobjective standards, it is difficult to judge whether the work could have been done with less use of TA,but there has been a substantial decrease over time in the use of international consultants and increasinguse of local consultants. The summary of TA, their contribution and costs is seen in Annex 4. On thetraining component, although sustained efforts were made in trying to resolve issues PUSDIKLATfocused on a range of tasks beyond the project scope. The net result was that progress on IDTPactivities stalled, and by project completion there was insufficient time to meet the SAR objectives forthe component.

D. Project Sustainability

27. Project achievements are likely to be sustained since all necessary Ministerial and other decreesand regulations for IDTP, which are required for institutionalizing systems and procedures, have beenissued and are operational. MPW is also committed to sustaining the existing changes through theprovision of routine budgets for the Kanwil and seeking self-financing status for the provincial testinglaboratories and RTC's. As indicated in their Operational Plan, MPW have also stated their intent tomodify, expand and incorporate additional improvements to the existing IDTP systems. MPW isseeking additional financing from donors for capacity building to complete and continue the IDTPinnovations but also extend them, as appropriate, to the local governments. These developmentsshould be monitored as indicators of sustainability.

- 8 -

E. Bank Performance

28. Bank performance was satisfactory. During project preparation, it was timely in supportingchanges that were only beginning to be formulated as GOI policies on deconcentration anddecentralization evolved. Although at the beginning of project implementation there was a brief changein Task Managers, an element of continuity was maintained throughout project supervision, since thestaff responsible for project design continued through to completion. Sufficient flexibility wasexhibited in supporting needed modifications as the decentralization processes accelerated. However,a regular schedule of supervisions was not maintained and there was a gap of over an year between thelast fill supervision and the completion mission. It would have also been useful if staff from theInfrastructure Division, and Agriculture Division working on irrigation institutions, who would have agreater opportunity to assess the impact of the project innovations on a day to day basis, had beeninvolved in supervision. More generally, supervision staff would have benefited from theestablishment of some clearly defined performance indicators to measure progress and outcomes,particularly measures for assessing the effectiveness of the large TA component as well as independentimpact assessments, including tracer studies, for the training programs.

F. Borrower Performance

29. Borrower performance was highly satisfactory; the major exception being the limited successon the training component. Supervision reports frequently cited the excellent management andimplementation of the project. This was due to the strong commitment of the Minister and S Gthroughout project implementation, together with a highly effective PMU. The continuity of PMUstaff, their full-time attention to the project, and access to the highest levels to resolve issues were keyfactors in implementation. The active involvement of the central Bureaus in the implementation ofspecific components strengthened the central/Kanwil links and provided a more integrated andcohesive approach to the project. The success of individual components was also directly linked to theeffectiveness of the Bureau Directors, and their sense of ownership of the respective components. Themotivation and commitment of the Kanwil staff was also contributory to project achievements. TheBorrower also established effective relationships with other Government agencies such as theprovincial planning offices (BAPPEDAS), particularly for the use of the AlP, during the course of theproject. Project reporting was comprehensive and timely and covenant compliance, althoughsomewhat delayed, was generally satisfactory.

G. Assessment of Outcome

30. Overall, the project is rated as satisfactory. A rate of return was not calculated, since it wouldbe extremely difficult to quantify with direct monetary measures the benefits (discussed below), of thehighly varied and complex project components.

31. There were no explicit performance indicators to measure project outcomes outlined in theSAR. There were only output indicators, e.g. numbers of staff trained, which exceeded SAR targets.Nevertheless, many of the benefits expected from the project have been met with substantial MPWinstitutional improvements at the center and the Kanwil. Public works activities have beendeconcentrated to a strengthened Kanwil, which has been provided with the systems and procedures toenable it to perform its new functions. It has been staffed with qualified and experienced personnel.Responses to a brief and rapid survey on Kanwil attitudes to IDTP, if taken to illustrate behavioralindicators, showed average scores for satisfaction on individual project interventions varying between

86% for the project related training to 92% for further continuation of the IDTP processes. The centralBureaus were also strengthened and the linkages between the center and Kanwil considerablyimproved. The institutional development is also illustrated in the decreased use of foreign consultantsas implementation was increasingly undertaken by local consultants, the IOE's and Ministry staff. Theintroduction of the ABP system has meant that the public works program are beginning to beprioritized, coordinated and with a single interface between MPW and the other key Ministries onnegotiations on the investment program. This is a major project achievement. Finally, key Ministerialand other Decrees and regulations that have been used to legalize systems and procedures reflectinstitutional indicators of successful outcomes. IDTP also improved systems introduced under MDPand, thus, ensured the sustainability of previous project investments

32. However, the project only partially met the benefits expected from the training component,which is an important area of human resource development. Substantially more work is also requiredin improving the utilization of the laboratories, which represent a major project investment.

33. Although the policies have been implemented and the support systems are in place andoperational, it is too early to assess the full impact of the project in terms of increased effectiveness,efficiency and productivity of public works activities. There are many assessments still required, forexample, to what extent are the Kanwils actually performing their technical guidance and supervisionrole? How effectively has the AHP been used for prioritizing public works programs? How applicableare the IDTP systems to local governments and how can MPW provide such support? The answers tothese questions, and the full achievement of project interventions will require time but the interventionsshould be monitored and supported through other Bank-financed MPW projects underimplementation, and a comprehensive assessment made in a few years' time.

H. Future Operation

34. The project has continued a process, begun under the Urban and Irrigation Sector Loans andMDP that is long-term. Recent policy changes announced by MPW indicate that the next stages in thedecentralization process, the full transfer of responsibilities for public works activities, includingbudgets, to the local governments is underway. MPW is seeking assistance for further capacitybuilding with the emphasis on continuing and sustaining the current IDTP investments and extendingthem to the next level as indicated in its Operational Plan. Currently, there is no follow-up project forIDTP although sector work on capacity building to support decentralization is planned. The AsianDevelopment Bank, however, includes an IDTP-type project to support local government in its lendingprogram.

I. Key Lessons Learned

35. The project provides the Bank and Borrower with a number of lessons. These include:

(a) Support for major institutional processes such as deconcentration and decentralizationrequires a long-term perspective, a vision of a final outcome and a phased set of projectsto reach this objective. Together with projects such as the Urban and Irrigation SectorLoans, MDP, IDTP and the proposed Local Government Institutional and StaffDevelopment projects represented such a vision and an incremental long-term program.In hindsight, it is regrettable that the latter projects did not eventuate, since the local

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governments would have been more ready to undertake increasing responsibilities asmore activities were decentralized to them over time (paras. 25 and 34);

(b) the lIDTP process would necessarily be slow and, perhaps, incomplete at projectclosing since it requires major institutional and attitudinal changes. An ICR is too earlyto capture the full impact of these changes and may not provide a full measure of thesuccess or failure of project efforts. The effects of IDTP should be further monitoredand assessed by reviewing its impact on other Bank-financed MPW projects underimplementation (para. 33);

(c) IDTP illustrates the need for flexibility and adaptation required as national policiesovertake and, possibly, make redundant, the more focused sectoral changes that aregenerally built into a project (paras. 6 and 25);

(d) the need for sufficient continuity in Bank and Borrower staff is important. IDTP alsoshows that it would be useful to involve staff from other Divisions in supervisions, iftheir sectors would also be affected directly by the project interventions (paras.28 and29);

(e) IDTP has clearly illustrated that strong, effective and committed project management,with the involvement of all the concemed agencies, and support at the highest level isparticularly beneficial to effective implementation. It also shows the importance of theownership of project components to ensure their success (para. 29);

(f) the need for clear project performance indicators to measure progress and outcomes,particularly measures for assessing the effectiveness of large TA components, as wellas independent impact assessments, including tracer studies, for training programs(para. 28); and

(g) as a more general point, the need for greater dissemination of individual sectorexperiences on decentralization, both in the Bank and GOI, to guide future work asdecentralization policies continue to evolve in Indonesia

IMPLEMENTATION COMPLETION REPORT

INDONESIA

PUBLIC WORKS INSTITUTIONAL DEVELOPMENT AND TRAININGPROJECT

(Ln. 3112-IND)

PART HI. STATISTICAL TABLES

Table 1: Summary of Assessments

A. Achievement of Objectives Substantial Partial Negliaible Not applicable

(/) (1) V) (V)Macro Policies 0 x 0 0

Sector Policies [x 0 0 0Financial Objectives Q Q [ 0

Institutional Development El 0 0 0Physical Objectives [ 0 0 0

Poverty Reduction Q DJ a

Gender Issues Q l0]Other Social Objectives a a o xEnvironmental Objectives Q a a ]Public Sector Management 0 0Private Sector Development D 0 0 0Other (specify) Q Q a

B. Proiect Sustainabilitv Likelv Unlikelv Uncertain(V) V) (V)

01 0 0

- 12 -

Table 1: Summary of Assessments (continued)

HighlyC. Bank Performance satisfactorv Satisfactorv Deficient

(1) (1) (v)

Identification E I 0

Preparation Assistance [l 0

Appraisal l [x E

Supervision 0 I3 E

HielD. Borrower Performance satisfactorv Satisfactory Deficient

(/) (1) (1)

Preparation E E E

Implementation I E E

Covenant Compliance El lx ElOperation (if applicable) C E E

-highly HfighlvE. Assessment of Outcome satisfactorv Satisfactory Unsatisfactory unsatisfactory

El) [EJ El) El

- 13 -

Table 2: Related Bank Loans/Credits

Loan/credit title Purpose Year of Statusapproval

Preceding operations

1. Public Works To upgrade Ministry of Public Works 1983 CompletedManpower Development (MPW) Staff and to provideProject (Ln. 2258-IND) experimental training for contractors;

and to improve MPW's planning andprogramming.

2. Highway Betterment Highway rehabilitation and 1984 CompletedProject (Ln. 2404-lND) institutional strengthening.

3. Irrigation Subsector To improve operations and 1987 Completed(Ln. 2880-IND) maintenance of all irrigation systems

and to support policy reforms andinstitutional strengthening.

4. Urban Sector Loan To sustain the momentum in the 1987 Completed(Ln. 2816-IND) sector and to strengthen sector

institutions

5. Jabotabek Urban Road rehabilitation and maintenance 1988 UnderDevelopment and institutional and policy implementation(Ln. 2932-IND) development

Following operations

1. Highway Sector Project To develop technical capacity of the 1989 Completed(Ln. 3133-IND) road agencies at the central and

regional level as well as strengtheningthe capacity of the road sector policyformulation.

2. Second Highway Sector Highway rehabilitation and 1994 UnderLoan (Ln. 3712-IND) institutional strengthening of the implementation

highway agencies at central andprovincial levels including humanresource development

Note: The list includes selected loans from the infrastructure sector that either influenced the design ofthe project or directly supported it.

-14 -

Table 3: Project Timetable

Steps in Project Cycle Date Planned Date Actual/Latest Estimate

Identification (Executive Project Summary) 01/88 01/15/88

Preparation

Appraisal 01/89 11/05/88

Negotiations 05/89 06/05/89

Board Presentation 07/89 07/25/89

Signing 08/89 08/24/89

Effectiveness 11/89 11/15/89

Midterm review (if applicable) 10/91 06/92

Project Completion 03/31/95 12/31/96

Loan Closing 12/31/95 12/31/96

Table 4: Loan/Credit Disbursements: Cumulative Estimated and Actual(US$ millions)

FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97

Appraisal Estimate 2.0 6.0 12.6 20.6 28.6 35.4 36.1 36.1

Actual 2.64 9.7 18.0 24.1 29.8 32.8 35.0 35.4

Actualas%of Estimate 132 161 143 117 104 93 97 98

Date of Final Disbursement -April 30, 1997

Note: As of 04/30/97 the balance in the special account was $692,832.22

Table 5A: Key Performance Indicators

Co_ oa D. t 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 (hand

Fro n Man- Man- Man- Man- Maw Man- Man- Man- ToWa

months nonths nxxths months months months months months Man-month

I Paome SAR 64 174 174 14S 116 0 0 676

Actul 20 177 93 121 325 114 231 1,0S1

Vasiance _ 44) _3 (81) _ 2 209 114 231 405

2 LoaCl TrauinngProganuns SAR 400 1,675 1,780 1,430 1,425 0 0 5,710

Actual 503 1,511 2,058 2,599 401 17 137 7,281

_ Variance 108 (164) 278 1.169 (1.024) 17 187 571

3 Managancatnmuatmion Sydtm SAR 263 333 172 50 0 0 3I3

Actual 3 227 14 156 106 73 4 5S3

Variance 3 (36) (319) (16) 56 73 4 (236)

4 Progranuning and Plannink SAR 275 275 275 275 0 1,100

Actual 22 75 115 55 39 125 4S1

Variance 0 22 (200) (160) (220) (186) 125 (620)

5 Foreign Aid Coordination SAR 25 50 30 0 0 0 105

Actual 23 20 17 44 7 59 1 133 303

Variance 23 (5) (33) 14 7 59 133 _ 198

6 Financc SAR 56 56 47 0 0 0 159

Actual 150 241 509 146 376 1,422

Variance 0 (56) 94 194 509 146 376 1,263

7 Audita SAR 113 113 112 12 0 0 350

Actual 23 97 45 51 1S 43 232

Variance 0 . 90) (16) (67) 39 18 48 _ U683

3 Logwiaicu SAR 100 200 225 175 0 0 700

Actual 41 60 42 160 90 70 463

Variance 0 (59) (140) (183) (15) 90 70 (238)

9 Legal SAR 40 40 0 0 0 0 30

Actual 4 1S 63 45 31 0 166

Variance 0 (36) (22)) 68 45 3/ 0 86

10 Library, Arduvi nd Pubh¢ SABR 167 122 100 100 0 0 439

Inlonnation Actual 254 10 121 38S 63 4 943

Variaxce 0 87 (14) 21 288 68 4 454

Laboratories SAR 265 265 265 255 0 1,050

Actual 0 276 243 711 301 193 ,729Variance 0 (265) 11 (22) 456 301 198 679

Touls in Year SAR 464 2,878 3,403 2,804 2,408 275 0 12,237

Actual 554 2,279 2,966 3,795 2,758 1,006 I,375 14,733

Variance 90 -599 -442 991 350 731 1374.5 2495.5

Cuintl tive TcoAi SAR 464 3.342 6,750 9,554 11,962 12,237 12,237 0

55 ,833 5799 9,594 12,352 13,353 14,733 OVarianoe 90 (509) (951) 40 390 1,121 2.496 0

Table 5B: List of Overseas Training Courses of IDTP

No. Course Title Start Finish Number of Participants Staff Location Remarks

Date Date Pusat Daerah Total month

1. New Town Development and 20-Mar-90 25-Sep-91 10 1 1 1 198 ENTRE LYONS Contract

Management FRANCE Number: HK.03.o7.Bp.P3/loMarch 25, 1991FF.3456088.01

2. Study Visit to United Kingdeno 25-Jul-90 08-Aug-90 1 0 1 1 United Kingdom ContractNumber: 001/PSPTKP/1990July 11, 1990Rp. 12.788.892 atau USS.6898

3. New Information Technologies and 31 -Aug-92 20-Nov-92 4 0 4 12 AIT, Bangkok Contarct

Computenised Library Services Number: KU.08.03-BPPSKAIAugust 11, 1992Rp.92.284.500

4. Personnel Management 16-Sep-92 05-Dec-92 8 3 1 1 33 UNSW, AustraliaContract Number: HK.02.07-BP.P31J03

5. Coordination of Planning and 16-Sep-92 05-Dec-92 7 5 12 36 IJNSW, Australia -August 14, 1992

Programming AS 704.021.60

6. Financial Management 16-Sep-92 05-Dec-92 12 2 14 42 UNSW, Australia

7. Training Managernent 02-May-93 29-Jun-93 10 6 16 32 UNSW, Australiaand Malaysia

8. Management Infonnation System 02-May-93 29-Jun-93 13 6 19 38 UNSW, Australiaand Malaysia Contract

Number: HK.02.07.Bp.P31AI)

9. Legal Matters 09-Jun-93 07-Aug-93 I 1 5 16 32 UNSW, Australia -August 13, 1993and Malaysia AS 1.069.592

10. Resources Informtion Management 09-Jun-93 07-Aug-93 8 8 16 32 UNSW, Australiaand Malaysia

Total 84 36 120 456

Table SC: Allocation of Priority Staff Training Program (Staff-months)

PROGRAM 1969/S 1990/91 11/92 199293 1993/94 1994/95 1995/94 1996/97 TOTAL

SAR Actual SAR Actual SAd Atua SAR Actual SAR Actual SAR Actual SAR ActuaI SAR Actual SAR Actual

PusdikintManagement

Prijectmnunzgmn-A 10.0 213 45.0 715 650 750 400 55S.8 40.0 00 200.0 726.5

Shatdpeciaiat 15.0 291.7 65.0 1370 100.0 595.0 60.0 1,001.3 60.0 00 300.0 2,025.0

TechnicalSurvey 5.0 12.0 15.0 148 200 00 200 0 0 100 00 70.0 268

Specialist upgadig 20.0 0 0 100 0 55 0 140 0 0 0 100 00 90 0 0 0 430.0 55 0

TrainingTrainigMethods 300 440 1100 5848 1000 510 600 342 600 233 122 152 360.0 7647

Training Maaement 20.0 21.0 70 0 69 0 70 0 1,095 0 40 0 972 4 40 0 377 7 55 7 45 3 29 6 240.0 2,665 7

Sub-Total 100.0 319.9 405.0 9320 4950 1,8160 300.0 2,566.7 3000 4010 679 605 296 1,600.0 6,2635

Dlikit Pencalran(Water Reseures)

ProjectMangament 25.0 11.0 110.0 125 1150 0.0 100.0 0.0 100.0 00 450.0 305

Tednical Upgrading 65.0 20.0 280.0 913 2850 200 2500 0.0 250.0 00 1,130.0 131.3

oQM 40.0 125 1700 956 1700 1250 1500 00 150.0 00 _ 6S0.0 2331

Sub-Total 130.0 50 5 560 0 199 4 570 0 145 0 5000 00 500 0 00 2,260 0 394 9

Olklat Bhes Mamts(HIghwys)

Project Manganent 15.0 23.5 60 0 10 0 50 0 0 0 50 0 0.0 50 0 0 0 225.0 33 5

Techmical Updig 30.0 00 1300 368 1400 100 1200 0.0 1200 00 540.0 468

oeM 20.0 0.0 95 0 58 0 90 0 36 0 S0 0 0.0 80.0 00 a_ 365.0 94.0

Sub-Total 65.0 235 2850 1048 2800 460 2500 00 2500 0 0 1130.0 1743

Diklit Cipt Karva(Hunma itlImnta)

Project Managment 30.0 0.0 S0 0 43 3 80.0 0.0 70 0 0 0 70 0 0.0 330.0 43 3

Techi calUpgading 50.0 44.5 1900 220 2000 130 1700 0 0 170.0 00 780.0 795

OkM 25.0 00 1300 270 1250 180 1100 00 |1100 00 500.0 450

Sub-Total 105.0 44.5 4000 923 4050 310 3500 00 3500 00 1.6100 167S

TOTAL 400.0 508 4 1,650 0 1,328 4 1,750 0 2,038 0 1,400 0 2,5667 1.4000 401.0 67 9 60 5 29.6 6,600 0 7,000 4

Note: The bulk o the staff-months was reallocated to Pusdikiat for management and training as these wmre considered pdriorty. In addition, the Individual Direcorate General provided the necesary training

for hoe staff, utifizing heir own funds.

- 18 -

Table 6: Studies Included in Project

Purpose as DefinedStudy at Appraisal/Redefined Status Impact of Study

1. Capacity Building for Studying and prepanng A number of studies The studies werelocal governments.a/ future local government were done between used as the basis of

institutional and 1988-89 by the proposed Localmanpower development Hasfarm/DHV. The Governnentprojects. studies were Institutional and Staff

implemented by the Development ProjectMinistry of Home prepared in 1991.Affairs, although they The project, however,were financed from was not processed.the IDTP project.

a/ This study is included in the Loan Agreement, Schedule 2. para. 4 , but there is no description of thestudy in the SAR. However, Annex 13 includes 60 manmonths of domestic and 20 staff-months ofinternational consultant services for assistance in the preparation of a local government institutionaland manpower development project.

- 19 -

Table 7A: Project Costs

Appraisal Estimate (USSM) Actual/Latest Estimate(USSM)

Local Foreign Total Local Foreign TotalItem Costs Costs Costs Costs

Land 2.7 0.0 2.7 2.8 0.0 2.8

Civil Works 1.8 0.8 2.6 3.0 0.0 3.0

Equipment, Furniture and Materials:

Laboratory Equipment 0.5 4.6 5.1 1.8 4.6 6.4

Training/Office equipment & Furniture 1.5 3.3 4.8 2.7 0.0 2.7

Books and Library Material 0.1 0.4 0.5 0.7 0.0 0.7

Consultancv Services:

International Consultants 1.2 9.8 11.0 5.7 5.4 11.1

Domestic Consultants 3.8 0.7 4.5 5.3 2.1 7.4

Training:

Overseas Training 0.1 1.3 1.4 0.1 1.9 2.0

Local Training 4.1 0.7 4.8 7.6 0.0 7.6

Incremental Costs 6.2 1.1 7.3 9.3 0.0 9.3

Total Base Costs 22.0 22.7 44.7 39.0 14.0 53.0

Physical Contingencies 1.0 1.1 2.1

Price Contingencies 4.3 2.9 7.2

Total Costs 27.3 26.7 54.0 39.0 14.0 53.0

Irrigation Subsector Project(Loan No. 2880-IND)

Civil Works (Comp-12) 1.0 0.0 1.0Laboratory Equipment (Comp-12) 0.3 1.9 2.2

Highway Sector Project(Loan No. 3133-IND)

Computer Equipment (Comp-4) 1.7 0.0 1.7 1.6 0.0 1.6Laboratory Equipment (Comp-12) 0.0 0.6 0.6 0.0 0.4 0.4

Total Other Loans: 2.9 2.3 5.2

- 20 -

Table 7B: Project Financing a/

Appraisal Estimate (US$M) ActualULatest Estimate (US$M)

Local Foreign Total Local Foreign TotalSource Costs Costs Costs Costs

IBRD/IDA 9.4 26.7 36.1 21.9 14.0 35.9

Domestic Contribution 17.9 0.0 17.9 17.1 0.0 17.1

TOTAL 27.3 26.7 54.0 39.0 14.0 53.0

a/ Additional funding of USS3.2 million for the laboratories and equipment (Component 12) was received from theIrrigation Subsector Project (Ln. 2880-IND) as proposed in the SAR; and S2.0 million for computers andlaboratory equipment (Components 4 and 12) from the Highway Sector Project (Ln. 3133-IND).

- 21 -

Table 8: Status of Legal CovenantsINDONESIA

Agreement Section Covenan Present Original Revised Description of Commentst type status fulfillment fulfillment covenant

date date

LOAN Sch. 5 para 1 5 C 11/30/89 03/30/90 Establish not later thanNovember 30, 1989 aninter-ministerial advisoryboard

Sch .5 para 2 5 C 11/30/89 03/30190 Establish not later thanNovember 30, 1989 aTechnical Committee

Sch. 5 para. 3 5 C 11/30/89 03/30/90 Establish not later thanNovember 30, 1989 aProject Management Unit

Sch. 5 para. 4 10 C 02/28/90 12/14/90 Appoint by February 28,1990, consultants toprovide services for (a)improved coordination ofprogranuning and planning;(b) improved financialmanagement; (c)management informationsystems; and (d) improvedforeign aid collaboration

Sch. 5 para. 5 5 C 12/31/89 03/30/90 Establish by December 31,1989, an informatics policyworking group

Sch. 5 para. 6 10 C 01/31/92 Carry out project inaccordance with an annualaction plan satisfactory tothe Bank

Sch. 5 para. 7 10 C 03/31/90 12/14/92 Appoint by March 31,1990, MPW staff as taskmanagers and counterpartsto consultants

Sch. 5 para. 8 9 C 10/31/91 07/23/92 By October 31, 1991, carry Regular reports wereout through the project provided on projectmanagement unit, a progress.detailed evaluation ofproject implementation andfurnish copy to the Bank forreview

Sch. 5 para. 9 10 C 10/31/092 03/07/94 By October 31, 1992, The appointmentsappoint technical and adm, were delayed to earlystaff in the Kanwil and 1994 and the MISDinas PUP; and implement was implementedthe MPW info. system for nationallyKanwil and Dinas PUP inN.&S. Sumatra, W. Java,C. Java and E. Java in DKIJakarta, Yogyakarta, Baliand South Sulawesi.

- 22 -

Covernnt types:

1. = ArcounWaudits S. = Idigenous people2. = Finmna performance/revenue generation fiom 9. = Monitoring, review, and reporting

beneficiaries 10. = Project impleenwtaion not covered by categories 1-93. = Flow and utilization of project funds 11. = Sectoral or cross-sectorw budgetary or other resource4. = Counterpart funding allocation5 . = Manageent aspects of the project or executing 12. = Secorl or crosa-ectoi policy/ regulatcxy/institujional

agency action6. = Environmental covenants 13. = Other7. = Involuntary resettlenent

S. Present Status:

C = covenant complied withCD = conplied with after delayCP = conplied with partiallyNC = not complied with

- 23 -

Table 9: Bank Resources: Staff Inputs a/

Stage of Planned Revised ActualProject Cycle

Weeks US$ ('000) Weeks USS('000) Weeks USS ('000)

Through Appraisal - - 39.4 104.2

Appraisal-Board - - 27.2 79.1

Board-Effectiveness - - 14.0 40.6

Supervision - - 99.7 167.0

Completion 11.8 30.5 12.0 29.1 5.9 12.0

TOTAL 11.8 30.5 12.0 29.1 186.2 402.9

a/ Data on "planned" and "revised" except for completion are not provided by the MIS.

- 24 -Table 10: Bank Resources: Missions

Number SpecializedStge of Month/ of Days in Staff Skills Performance Rating

Project Cycle Year Persons Field Represented

Iniplemen. Develop-tation ment Types ofStatus Objectives Problem

Through Appraisl 03/87 4 Edzc. Spec.Opertion OfficerInfo. SpecialistUrban Specialist

04/88 4 26 Educ. Spec.Hum. Res. spec.Systems AnalstInfo. Anaivst

Appraisal through 11/88 4 21 Educ. Spec.Boad Approval Hum Res. Spec.

InsL Dev. Spec.ODerations Assist

Board Approval 03.89 1 Educ. Spec.through Effectiveness Human Res. Spec.

Inst Dev. Spec.Operations Assist.

Supervision 09/89 2 12 Sr. Oper. OfficerOper. Officer

02/90 3 16 Sr. Oper. Officer 2 1 Hiring of consultantsInfo. SpecialistOper. Officer

11/90 3 14 Sr. Oper. Officer 2 1 Strengthening theTrnB Specialist Bureau of PlanningOper. Officer

02/91 3 Sr. Oper. Officer 2 1 CurrencyInfo. Specialist DepreciationTech. Edu. Spec.

11/91 4 10 Physical Planner 2 1 Coordination betweenTech Educ. Spec. componentsInfo. SpecialistTechn. Educ. Spec.

04/92 2 Physical Planner 2 1 Preparation of KanwilOper. Officer Staff

01/93 3 14 Physical Planner 1 1 Nomnajor issuesOper. OfficerTech. Educ. Spec.

GCeater integration01/94 2 24 Oper. Officer I I required in sysem

Trng Specialist modulesUnderutilization ofTraining Centers

01/95 2 24 Oper. Officer HS HS Substantial progenTrng. Specailist

08/95 3 16 Oper. Officer S S Delay in activities andTmB. Specialist outputs from trainingEconomist conm4p nt

Completion 09/96 2 15Snr. Proj. Eon____ ___ ___ __ Tr Specialistroj

- 25 -

Annex IPage 1 of 2

IMPLEMENTATION COMPLETION REPORT

INDONESIA

PUBLIC WORKS INSTITUTIONAL DEVELOPMENT AND TRAINING PROJECT

(LOAN NO. 3112-IND)

A Summary List of Decrees Issued under the Project

Component Decree Number/Date

I Personnel Decree for the use of the Personnel No. O1/SE/KP/1996-11 March 1996Information system, including staffplanning, appraisal, job analysesand performance assessment.

2 Strengthening Kanwil and Ministerial Decree for MPW No. 21 1I/M/1994-25 June 1994Dinas organization.

3 Management of Training Draft decree for training NAmanagement under preparation.

4 Management Information Decree from the Secretary General No. UM.01.01-SJ/544 - 26 May 1995System (MIS) on the use of PU-Net.

5 Programming and Planning Decree from the Secretary General No. PR.02.05-SJ362 - 19 April 1996on planning/programming using theAHP for public works activities.

6 Foreign Aid Coordination Decree on the establishment and No. 62/KPTS/SN1993 - 21 Sept. 1993use of the for Foreign Aid MIS.

Ministerial Decree on establishment No.239/KPTS/1994 - 27 July 1994of project management teams at theKanwil.

7. Finance Ministerial Decrees on all aspects No. 16/KPTS/1993 - 8 March 1993of finance including, inter alia, No. 118/KPTS/1993 - 8 March 1993implementation of accounting No. 258/KPTS/1994 - 16 August 1993systems, guidelines for self-funding No. 259/KPTS/1994 - 16 August 1993units, verification and No. 260/KPTS/1994 - 16 August 1993accountability of public budgets, No. 261/KPTS/1994 - 16 August 1993cash inspection, and the use of No. 262/KPTS/1994 - 16 August 1993financial information systems for No. 128/KPTS/1995 - 12 April 1995monitoring of routine and No. 129/KPTS/1995 - 12 April 1995development budgets. No. 07/KPTS/1996 - 3 January 1996

8 Audits Ministerial decrees on the use of No. 90/KPTS/1993 - 27 February 1993performance and program audits. No. 414/KPTS/1993 - 15 Sept. 1993

- 26 -Annex I

Page 2 of 2

Component Decree Number/Date

9 Logistics Ministerial Decree on procurement, No. 172/KPTS/1993 - 6 April 1993including use of Standard BiddingDocuments.

10 Legal Decree on the establishment of the No. 01/SE/Sh/III/1996 - 11 MarchLegal Information System. 1996

11 Libraries, Archives and Ministerial Decrees issued on No. 362/KPTS/1992 - 14 April 1992Public Information establishment of library networks, No. 342/KPTS/1993 - 18 May 1993

archive policies and management of No. 12/KPTS/1 996 - 10 Januarypublic relations activities.

12 Laboratories (Research and Ministerial Decrees on laboratory No. 395/KPTS/1993 - 4 Sept. 1993Development) standards and accreditation. No. 448/KPTS/1995 - 28 Nov. 1995

IMPLEMENTATION COMPLETION REPORT

INDONESIA

PUBLIC WORKS INSTITUTIONAL DEVELOPMENT AND TRAINING

PROJECT

(Ln. 3112-IND)

Numbers of Graduates in Kanwils

T _eetical Non-technical Total Numbet ofOasdua& _

March 1992 Augst 1996 March 1992 August 1996 March 1992 August 1996

All iligha lnadw3js Toal I_ ligher la.hlw's llal _jr_ 3li lladicld,s 'oIal

Graduates Deree Deree Graduatcs ChanSe All Graduates Degee Degree (;raduates Chtuge All Graduates tegree 1),egree (adate, Change % Chunge

Arch 16 22 6 28 12 7 II 3 14 7 23 33 9 42 19 83

Sumater Utacs 35 22 3 30 15 5 6 4 10 5 20 is 132 40 20 100

Sumaters Barak 15 13 16 29 14 5 12 1 23 38 20 ,5 27 52 32 160

Riau 9 33 9 20 33 3 14 4 389 10 17 25 13 38 21 124

Jambi I 10 13 23 I 5 0 4 3 7 7 8 14 16 30 22 275

Sumatra Sclatan I 23 8 31 20 9 21 10 331 22 20 44 I t 62 42 210

asngkulu 7 12 3 15 8 5 14 3 17 12 12 26 6 32 20 167

Laqung 9 15 5 20 3 3 4 9 3 12 8 133 24 8 32 19 146

DKI Jakana 12 20 15 35 23 3 10 7 17 14 13 30 22 32 37 247

Jaw& Rant I8 I 5 29 44 26 10 9 8 17 7 2t 24 37 61 33 l33

JawaTengah 16 16 15 31 15 3 14 31 25 22 19 30 26 56 37 195

Of Yoyakatta 9 15 23 38 29 12 13 9 22 10 21 28 32 60 39 136

JawaTimur 31 28 4 32 132 15 6 21 9 41 43 10 53 10 23

KaltintanBaramt 7 15 2 17 10 4 5 2 7 3 33 20 4 24 13 338

KalimantanTengah 6 7 6 13 7 6 S 4 12 6 12 135 0 25 13 108

KalimantantnSelut I 30 2 2 32 3 4 I3 3 14 10 15 21 5 26 33 73

Kalimanta nTimur 8 6 5 33 3 6 20 14 34 28 134 26 19 45 31 221

SulaweSi UtArA 9 9 10 19 10 I 3 9 7 16 3 20 38a 17 35 15 75

SulawesiTengah a 10 4 14 6 4 10 2 12 8 12 20 6 26 14 117

SulawesiSehatan 17 19 9 28 33 3 135 9 24 13 28 34 18 52 24 16

Sulawesi Tenggpra 10 13 5 i3 8 3 6 0 6 5 11 19 5 24 13 IIY

Nlaluku 13 16 6 22 9 9 12 3 15 6 22 21 9 37 15 68

Bali 13 3 I 132 -1 I1 19 8 27 16 24 30 9 39 15 63

Num Tensggaa iafat I 3 13 4 17 6 12 3 1 132 a 23 24 3 29 6 26

Nus tetnggaraTismu 5 3 13 21 16 7 10 2 12 5 12 18 13 33 21 175

Irian Jtya 10 12 7 19 9 5 9 I 10 5 15 21 a 29 14 93

Timor Timur 7 7 4 3 3 4 3 4 1 5 2 10 I I 1 16 6 60

TOITAI.S 33l 370 2321 610 299 177 3403 139 440 263 4KS 679 371 1050 5612 35

- 28 - Annex 3

IMPLEMENTATION COMPLETION REPORT

INDONESIA

PUBLIC WORKS INSTITUTIONAL DEVELOPMENT AND TRAINING PROJECT

(LOAN NO. 3112-IND)

A Summary List of Key Documents Produced under the Project

Management and Training Guidelines and Handbooks by Component

A. Personnel (Component 1)

1. Personnel Planning Guidelines2. Job Analysis Guidelines3. Performance Assessment Guidelines4. Personnel Management Infonuation System (MIS) Guidelines

B. Strengthening Kanwil and Dinas (Component 2)

1. Ministry of Public Works Organization

C. Management of Training (Component 3)

1. Planning for Provincial Training2. Training Management Information System3. Curriculum Development4. Instructional Techniques

D. Management Information System (Component 4)

1. Ministry of Public Works Data Communication and Executive Information System2. Geographical Information System (GIS) and MIS Integration Manual3. Manual on MIS Installation in Kanwil PU

E. Programming and Planning (Component 5)

1. DSS/AHP System on Public Work Infiastructure Synchronization Program2. Manual on AHP Model Preparation (using Expert Choice)3. Group Weighting on DSS Hierarchical Criteria in Public Works Infrastructure

Program4. Procedures in Preparing Program Synchronization using the AHP Methodology in

Kanwil PU5. Technical and Operational Manual on Planning Information Systems

- 29 - Annex 3

F. Foreign Aid Coordination (Component 6)

MIS on Foreign Aid Cooperation

G. Finance (Component 7)

1 . Guidelines for the Withdrawal of Proceeds of Foreign Loans/Grants within theMinistry of Public Works.

2. Guidelines on Cash Audits3. Guidelines on Book Keeping and Preparation of Financial Reports for Projects4. Guidelines on Self-Financing Units (Unit Swadana)5. Guidelines on Verification of Budget Accountability6. Guidelines on Financial Administration.

H. Audits (Component 8)

1. Guidelines and Standard Operating Procedures on Performance Assessment2. Guidelines on Construction Control3. Guidelines on Program Assessment

I. Logistics (Component 9)

1. Standard Bidding Documents on Goods and Services Procurement (ICB, LCB)2. Guidelines on Bid Evaluation3. Guidelines and Standard Operating Procedures for Goods and Services Procurement4. Guidelines for Contracting based on Unit Cost5. Guidelines on Post-Audits for Goods and Services Procurement

J. Legal (Component 10)

1. Guidelines on the Legal Information System2. Guidelines on CDS/ISIS Operation Program

K. Libraries, Archives and Public Information (Component 11)

1. Guidelines on Manpower Development in Libraries2. Guidelines on Library Services3. Guidelines on Archive-Retention4. Guidelines on Public Information Activities in Kanwil PU

L. Laboratories (Component 12)

1. Laboratory Classification and Accreditation in the Public Works Sector2. Guidelines on the Effective and Efficient use of the Laboratories of the Kanwil PU

IMPLEMENTATION COMPLETION REPORT

INDONESIA

PUBLIC WORKS INSTITUTIONAL DEVELOPMENT AND TRAINING PROJECT

(Ln. 3112-IND)

Status of Technical Assistance

_________ ACTUAL MAN WIONTHS _ _ __

NO D-*i- SBAR 1909l10 I0 1 Y991 191l12992 1992993 1993Y1994 1994 I995 1995/1996 19961997 TOW Not.

_ [ood __ Local Fowie Local F.W Loca Fmcs Local Fom Local _in Local For Local Fow Loca Fl Local

I C fEl 63.0 144.0 . 9.4 17.0 34.0 40.5 20.4 38.6 0.5 48.0 50.S . 48.0 ") 38.0 64.3 260.5 ')1a.ad

2 Conponit 3 203.0 180.0 , . 9.0 11.0 50.0 64.0 49.7 67.4 8.0 54,0 53.3 '') 12.0 . ) 5.0 116.7 272.7 C _mp..d C

3 Co.ogdin.IcPact I 35.0 0.0 . 6.0 11.0 I 11.0 .11.0 .120 - 9.0 - 6.S 66.5 0.0

4 Conyonu 4 57.0 21.0 . .2 1.0 23.0 11.0 9.0 15.7 - 24.0 57.5 - 117.0 29.0 40,2 255.2 *1I.. l om d

5 Cmpompg 5 101.0 210.0 . 9.0 8.2 36.8 49.4 9.8 58.7 . 462 80.0 1160 40.0 55.5 398.5 C _insol 13

6 Cowpmom 6 31.0 0.0 . 9.0 . 12.0 . 3.0 .- - 24.0 0.0

7 Componn 7 42.0 120.0 . 3.7 2.5 18.0 36.0 5.7 54.0 2.0 43.0 32.0 . 22.0 . 294 189.5

s c ruaw Packet M 30.0 0.0 . . 7.0 . 10.0 - 11.8 2.0 12.0 12.0 6.0 12.0 3.0 12.0 1.0 7.0 50.8 45.0

9 ComPonm 8 52.0 60.0 1.0 22.4 12.0 56.2 3.0 24.8 . 1.6 . . 20.0 . . 16.0 125.0

10 Cmapcan89 12.0 36.0 2.5 5.0 3.0 24.0 12.0 . . *) 4.0 - ') 14.0 I -) 8.0 5.5 7.0

II CadonatlO 12.0 60.0 . 4.0 13.0 4.0 24.0 6.0 . . ^-) 24.0 . 50.0 . 41.0 8.0 158.0

12 cospoad II A 1- 8.9 10.5 9.8 . 12.8 3.2 . . . 0.0 45.2

13 CaInp.09I IB 0.0 36.0 . 22 4.5 . 4.1 2.7 . 6.5 7.0 0.0 27.0

14 C _mp (I IC . . 12.0 . 25.0 14.0 35.0 . 49.0 . . 0.0 135.0

15 tI2(bOidmvdwmd uq wvinw) 0.0 70.0 25.0 5.0 . . - . . . . 0.0 30.0

16 C-apmt 2B MOIHA) 20.0 60A0 20.0 60.0 . . . . . . . 20.0 60.0 No dohd W.medom

17 C_ i 2A (Og_m," Sii b*) 40.0 120.0 10.0 16.0 . -. . *) 38.0 . -' 27.0 10.0 11.0

18 Ca p.g'A 2C (C,-wdiii of aimplm 1) -. . . 112.0 27.0 102.0 72.0 . 36.0 . 36.0 0 28.0 24.0 1 99.0

19 Co.p.t 2 DIKanwl buildi) 0.0 120.0 .- - - - - 0.0 0.0

20 Co 13 108.0 180.0 4.0 4.0 11.0 27.6 10.0 46.7 5.0 32.5 . . . . . . 300 110.5

21 1C4 13 (I st aion) 6.0 38.0 101 92.0 6.0 42 0 -. . 22.1 172.0

22 Componlt 13 (2nd a ionu) 6.0 40.5 11.2 84.0 7.0 6035 24.2 18 5 0

TOTAL I 311.0 1,417.0 8 4.0 1 4.0 1 9. 237.8 223.7 3 36.8 146.4 1 404.61 85.6 1 443.3 1 30.0 490.7 1 23.2 876.0| 14.8 1 273.5 607.2 2,26.4|

Man-months of consultancy

eo 40

198S109 1991V1991 1991/1M 191993 1993/1994 1994/1993 92"19%6 18901997 .-

IMPLEMENTATION COMPLETION REPORT

INDONESIA

PUBLIC WORKS INSTITUTIONAL DEVELOPMENT AND TRAINING PROJECT

(LOAN NO. 3112-IND)

Lbt orcultant Contrwts

Total

Component Conrutant Man Month cost Output Remas

Forign Local USS

I&3 Mott Mc. Donald 247.5 533.5 4,998 a. Peronnel Admnitrain (Parsonnel Infomation ystman nng Complted

b. Traininr Administrtion (Trang M g, Info. Systen) (Cer devlopmt *udr pres)

2-A 9 BCEO 10.0 31.0 271 Rewew of MPW Organstaon Compltd

2-B Hasfarm Dian 20.0 60.0 354 Study on Loa Govennnt Institution Conmltd (done by MOHA Consultant)

_(Minitry ofHome Affair)

2-C Bina Kasys 24.0 199.0 1,557 Implcmentation monitoring/Assistanc to 27 Kanwil PU Compleed

Packae.111 Kmpa

4,5,6,7 _ 199.9 333.2 5,323 a. MIS (Inforanfion, Communication, Hardwarc, Software, Competd ( scroniato syst

___________ Training Coordination) enhacd in F. Y. 97/9S)

lb. PPBS (Synchrmnization system, Monitoing and Evaluation

______________ Program Trainig) _

_______________ c. Forign Loan/Grant Administration and Monitoring Infonrmton

________________ _______ sy m , Training

d. Fmancing sdrinistration & Accointing, Tra g __

3 LMUI 1/ 16.0 125.0 791 Control & Audit Completed

9 Virama Karys 5.5 77.0 246 Procureinent Adninistration/(MONEV, ICB, LCB/Training Competed

10 Virama Karya 8.0 15S.0 315 Lcgal Traininal Infornation system Completed

11-A PD1I LIPI 0.0 45.2 70 Libray administration and Infonnation system (Training) Completed

II-B LAN 2/ 0.0 27.0 30 Archive administration (Training) Completd

I-C LAN 0.0 135.0 231 Public Information ytem (Hardware and software trainig) Completed

12 Viranu Krya 0.0 30.0 115 Design & Supervision on Laboratoitun Building Completed

13 Bina Karya 76.3 467.3 2,920 Assince to PMU Comptidc

______________ _______ ________ (Contract Prepation, reort writing, monitoring and evaluation)

TOTAL 6072 2,326.7 17,771 0) X

1/ IMUI - Langg Maunse t UnMeamity 1nonesia

2/ LAN - Lembagp Adminitrasi Negara

- 32 -

APPENDIX A

IMPLEMENTATION COMPLETION REPORTINDONESIA

PUBLIC WORKS INSTITUTIONAL DEVELOPMENT AND TRAINING PROJECT(LOAN NO. 3112-IND)

BORROWER'S CONTRIBUTION

1. SUMMARYFollowing upon the Manpower Development Project, which provided some systems for the Ministry,but which did not provide for sufficient strengthening of staff, the IDTP, which ran from 15thNovember 1989 until 31st December 1996, has been successful in:- providing the basis for the new organisation structure of the Ministry that strengthens the centre

and the Kanwils (defined in Kepmen 211/94) to enable it to support decentralisation of publicworks better.

- strengthening Kanwils by adding functions to their organisation structure and by improving thecapabilities of staff so that they can provide the services that are required of them under PP 6/88for the provincial organisations.

- assisting in up-grading staff and equipment and in changing attitudes to give a significantly moreprofessional approach to management within the Bureaus, Pusdata and Pusdiklat.

- providing an advanced decision support system that gives the Kanwils and in turn the ProvincialWorks Offices a consistent method of recommending priorities of potential projects from aProvincial viewpoint and which also allows the Centre to re-evaluate the priorities to take intoaccount National objectives.soils and building materials testing laboratories that were equipped to a standard to provide forbasic testing and by providing the Inspector General with the tools to audit the constructionsupervision process.

- providing supporting systems for:- personnel,- the determination of training needs and management of training,- preparation of training materials,- an advanced data processing network at the centre,- local area networks in the Kanwils all linked through PU-net and- new accounting systems that meet the latest financial regulations and which take advantage

of up-to-date computer technology.

In addition the project has:- improved staff and management systems in the Bureau KLN.- strengthened the Inspectorate General and provided new systems for performance and

programme audit supported by appropriate training.- provided standard bidding and contract documents for ICB and LCB for works and goods and

the procurement of consultancy services.

- 33 -

improved the Ministry's legal service by training both lawyers and non-lawyers in legal mattersand by the provision at both the centre and the provinces of a comprehensive list of laws andregulations that are appropriate to public works.improved handling of archives, the management of the Ministry's libraries and arrangements forrelationships with the public in the provinces.

The implementation of these results has meant that the Ministry was able to respond to themanagement demands placed upon it by regulations that came into force at the beginning of RepelitaVI.

The Project has reached its goals under the direction of the top management of the Ministry ofPublic Works, (especially the Minister of Public Works, the Secretary General as Project Director andthe Minister's special expert on manpower development as the Head of the Technical and Inter-Ministerial co-ordination teams). The Project was executed by a team consisting of a strong centralPMU and a PIU for each component, each PIU covered the work of one Bureau or other organisationalunit at the centre, and the Heads of the Kanwils who implemented the Project in the Provinces

The Ministry was supported by teams of consultants, who were controlled and assisted by thePMU consultants. A particular feature of the consultancy was that, whereas at the beginning of theProject much of the work was done and controlled by foreign consultants; towards the end localconsultants were carrying out virtually all of the consultancy work.

The Ministry is satisfied that the objectives of the SAR have been achieved and is looking tobuild upon the success of the Project and further develop the institution to enable it to meet challengesthat are foreseen in the changing style of Government.

In line with this, considerable work is required to meet all of the requirements of PP 45/92which provides for the Dinas level II to become the centre of implementation in all sectors. In the caseof public works this means the District Public Works Office. This work would need to centre onimproving the capability of PU staff through improved education and training and on extending theInstitutional Development and Training Project systems from the Kanwil/Provincial Public WorksOffice to the District Public Works Offices.

An additional loan is being sought to fund the greater part of the programme outlined above.

2. BACKGROUNDThe Institutional Development and Training Project followed on from the Manpower

Development Project which was completed in 1988. That project had prepared the ground for theInstitutional Development and Training Project and had installed some systems and procedures.However, because it took place before decentralisation it did not fully meet the needs of Government indecentralising and accordingly it was not fully implemented.

The objective of the Institutional Development and Training Project as defined in the WorldBank's Staff Appraisal Report is:

t to improve the co-ordination ofplanning and to contribute to the improvementof the implementation ofpublic works activities, and to assist in implementation of theBorrower's policies for deconcentration and decentralisation."

Government policy preparing the Ministry of Public Works for decentralisation of public worksto the provincial and District Public Works Offices is defined in PP 14/87 and confirmed in PP45/92, which covers the subject of regional autonomy and which specifically nominateskabupaten/kotamadya (District) government as the centre of all decentralised activity. PP 6/88is the legislation defining the role of Kanwils in deconcentrated Government.

- 34 -

The loan agreement for the Institutional Development and Training Project was signedon 24th August 1989 and it became effective on 15th November 1989. The closing date of theloan was 31st December 1995.

The first consultancy contracts were signed on 7th June 1990 and the two majorconsultancy packages, Packages I and m were signed on 31st January 1991 and 3rd December1990 respectively.

Implementation started late in 1991 with trials in Yogyakarta, East Java and West Javaand by the end of 1993 was largely complete across the project. However some aspects couldnot be completed on time because of the delayed start of the two main consultancy packagesand the Bank agreed to an extension of loan closing date by one year to 31 st December 1996.

3. POSITION BEFORE THE IDTPBefore the IDTP the Ministry developed public works largely through the Directors

General. None of the Secretariat General and its Bureaus as well as Pusdata and Pusdiklat wasequipped with any of, strong management, suitable staff, sufficient equipment in the form ofcomputers or suitable systems. The results of MDP 1 were not fully implemented because theywere not entirely suitable and also because insufficient attention had been given to ensuringthat they were sustainable. The result was that the three Directorates General were acting to agreat extent as three separate entities, each going its own way and each with its own systemsand each presenting a different face to Government, lending agencies and other outside parties.The Kanwils were weak and generally not capable of assuming any of the roles placed uponthem by PP 6/88.

Although computers were widely used in the Ministry, each Directorate Generalfollowed its own purchasing policy and they had all chosen different makes of machine runningdifferent operating systems. The result was that it was not easy and often not possible totransfer data rapidly and reliably between the different systems, although Pusdata had madesome progress in centralising data on its IBM mainframe.

With no central planning or management information, the Minister was not able toreceive prompt and accurate management information.

Without the Institutional Development and Training Project, it would have beenextremely difficult for the Ministry to assume any of the management roles placed upon it bythe requirements of Repelita VI, nor could it have managed the change to decentralisedimplementation of public works through an organisation deconcentrated to the Kanwils.

4. RESULTSThe main changes in management of the Ministry that has taken place during the

Institutional Development and Training Project are:* The centre is organised regionally within the technical Directorates General. This is

an adaptation of one of the recommendations contained in the InstitutionalDevelopment and Training Project's report on the organisation of the Ministry,which recommended that the Directors General's offices themselves should becomeregional offices, with Technical Directors for each of Water Resources, Roads andHuman Settlements.

* The Ministry now operates more as a single entity with central co-ordination ofplanning and there is also an information system that allows the Minister to requestand to receive the top-level management information that he needs to have effectivecontrol of public works development.

- 35 -

In addition to these changes in organisation structure and management style, the InstitutionalDevelopment and Training Project has produced results at the centre and in the provinces asdetailed below.4.1 Main tasksWith responsibility for implementation of public works being decentralised to Provincial andDistrict Public Works Offices, the Central Ministry of Public Works has also had todeconcentrate its control and assistance roles to the Kanwils in order for these roles to beeffective. The main tasks carried out by the Institutional Development and Training Projectwere:

to strengthen the organisation of the Kanwils. This was done by;° redefining the organisation of the Kanwils to provide better support to public

works in the provinces. Specifically sections were added to give the Kanwils acapability in legal matters and to improve their management of archives andpublic relations.

° extending central systems to the Kanwils. The systems for management oftraining, personnel management, planning, programming and reporting,accounting and financial reporting, and foreign aid relationships are nowextended from the centre to the Kanwils.

o increasing the number of qualified personnel in the Kanwils,o changing some key staff to more suitable people, who were usually promoted

from within or transferred from projects,o training all Kanwil staff ando providing them with the equipment that is needed to carry out their

responsibilities.It was also necessary to provide some training for staff at Dinas level 1 as part of preparing fordecentralisation.- the primary tool provided for the Kanwils was a decision support system and its associated

management information. The decision support system provides for assigning a range ofpriorities and weights against different factors affecting the decision whether and when toimplement a particular project. The provincial results are then co-ordinated at the Centre bythe Bureau of Planning. This system has been implemented at all Kanwils and in the Centreand has been used for establishing the programme for financial year 1997/98.

* the second key tool provided for the Kanwils was a total of twenty seven soils, buildingmaterials and water testing laboratories, of which eighteen were financed through theInstitutional Development and Training Project. Construction took place between 5 January1990, when the first construction contract was awarded and mid 1991. The laboratories werecompletely equipped under five supply contracts that were awarded between 20th September1990 and 5th November 1990. Staff were trained in testing procedures and management inthe operation of such laboratories. The Ministry defined three classes of testing laboratory asfollows:Class A which are capable of supporting a full range of design and field supervision of

construction of buildings and highways and of monitoring water quality.Class B which are capable of giving limited support to design and field supervision and

monitoring water quality.Class C to give limited support to field supervision and monitoring water quality.

- 36 -

By the end of financial year 1996/97 all provincial testing laboratories were fully accredited toQualification C in testing water samples, construction materials and soils.This improved ability to test construction materials was further supported by implementingwithin the Inspectorate General a system for auditing the construction supervision activitiesthat are carried out on projects.

4.2. Supporting systemsThe above main tasks were directly supported by the following:

* a new personnel administration system covering:° a revised and updated personnel data base that lists all staff with Ministry of Public Works

employment numbers wherever they are working, together with all other staff working atthe central Ministry and its Kanwils,

° a staff planning system and a career development and performance appraisal system and° a personnel information system.

* Pusdiklat has developed the structure of an education system for MPW employees that isaimed at upgrading staff from largely High School graduates to bachelor's degrees.

* a new system for determining training needs from personal appraisals and for co-ordinatingtraining throughout the Ministry. This co-ordination includes standardised formats for trainingmaterials no matter which department within the Ministry prepares them and the provision ofa list of courses that are available within the Ministry. There is also a training managementsystem which is co-ordinated with the personnel system and a new system for analysing thecost of training.

* the Ministry's management of computerised systems has been made more professional and thesystems have been completely overhauled during the Project and there is now a Local AreaNetwork in the Centre and one in each Kanwil. Communication is possible between theCentre and all of the Kanwils through the Ministry's own country-wide network. Subject tosecurity restrictions data can be shared between all Central units and with the Kanwils. Thereare staff in all Kanwils who are capable of managing local area networks and operating staffhave been trained in appropriate systems.

* systems for accounting in both the Kanwils and in the Centre. These systems run on the localarea networks and data is transmitted by and received from Kanwils over the country-widenetwork.

4.3. Ancillary workIn addition to the above supporting work, the following ancillary work was carried out. This

work was aimed at improving the professionalism and effectiveness of the Ministry, particularly in theprovinces and included a review of the Ministry's organisation to define how it should be betterorganised to enable it to respond better to its responsibilities after decentralisation and deconcentration:

* the decentralisation study led to the realisation that key Bureaus as well as Pusdata andPusdiklat needed to be considerably strengthened and this has been done by transferring newstaff into key positions in the Bureau of Planning and into both Pusdata and Pusdiklat. Theresult of this has been to transform these departments into strong organisations that arecapable of providing management and leadership both at the centre and in the provinces.

* improvements to staff and management systems in the Bureau of Foreign Co-operation. Thisprovides for better tracking of progress of foreign loans and grants, from inception of the loanthrough to completion of procurement of all goods, services and works. The system has been

- 37 -

installed in both the centre and in the Kanwils and uses common data with the planmingsystem being operated by the Bureau of Planniing and the accounting system being run by theBureau of Finance.

* the role of the Inspectorate General was strengthened through provision of audit systems forperformance and programme audit. The systems were documented and training materialprovided. Audit staff were trained. Most Inspectorate staff were converted from structuralstaff to functional staff on 1st October 1996. The change is aimed at making audit staff moreprofessional.

* three sets of new bidding and contract documents were prepared during the Project, the firstset was based upon the original briefing and the second set was prepared when the IBRDprepared a new standard General Conditions of Contract that they require to be used on allprojects, but which could not be used as they stood as they conflicted in some respects withIndonesian law. At approximately the same time, the GoI published new financial regulationsand the two sets of changes were incorporated in the Ministry's standard documents. It wasthen discovered that the Bank had changed its standards once more in 1995 and the latest setof documents reflect 1BRD Guidelines for Procurement 1995. Bidding and contractdocuments are provided for each of Goods, Works and Consultancy Services.

* a procurement tracking system has been installed which is based upon independent systemsfrom the three Directors General.

* the Ministry's legal capability has been upgraded through the establishment of new legalfunctions at each Kanwil, through training of lawyers in specialist legal subjects and non-lawyers to improve their awareness of the legal impact of their work. Lawyers are assisted intheir work through provision of a legal database that lists all legislation that affects publicworks at all levels. This list has key words inserted in it and is available at all Kanwils.

* the Ministry's central archives at Citeurup have been improved and much superfluous materialhas been weeded. At least one librarian has been fully trained in each library and there is amore professional approach to their operation. The Ministry's public awareness programmehas been enhanced and information centres in each provincial capital are being improved.There are now embryonic libraries in each Kanwil.

5. METHOD OF ACHIEVING THE RESULTSThe Project has achieved its results through the following methods:

. A strong Project Management Unit was established, with Project Implementation Unitscomprising Ministry staff from the controlling sections of the Ministry. The Head of the PMUanswered directly to the Secretary General and the Heads of the PIUs in turn answered to theHead of the PMU. The allocation of budgets followed this organisation structure.

• Each component was placed under the control of one section of the Ministry's organisation,the implementing unit. These were the seven Bureaus in the Secretariat General, Baiitbang,the Inspectorate General, Pusdata and Pusdiklat.

* Consultants were appointed for design and implementation of the work. The consultants wereassisted at all times by In-Office Experts from the implementing units and were controlled bythe respective PIUs.

* Each system was well supported with legislation in the form of Ministerial decrees, systemdocumentation, training materials and guidelines.

* The products of the Components were applied initially at the Centre and then in trials inselected provinces, followed by general application in all 27 Provinces. In each Province an

- 38 -

Implementation Team was established to ensure proper involvement of all concerned at bothKanwil and Dinas. Implementation was carried out by joint teams led by the PIU with theassistance of the Component consultant, and assisted by the following:

o Local, on-the-job training, which accounted for approximately 50% of all of thetraining funded by the Institutional Development and Training Project

o Diklat, using all six Diklatwilso Diklat at the Centre

6. IMPLEMENTATION6.1. Organisation

The organisation that was established from the outset was continued through the duration of theproject with only minor changes in personnel and it achieved the main objectives of the Project.This organisation was able to overcome difficulties as they arose while at the same timemaintaining control over progress and quality of the work that was done. An example of the kindof problem that arose and was resolved occurred at the beginning of the Project, when Bappenasneeded additional data on the lump sum items of consultancy that were incorporated in thecontracts for the two main components. By the time that the problem had resolved, theconsultants had been unable to keep all of the staff originally proposed and replacement staff hadto be reviewed and on occasion turned down as being unsuitable. Resolution of these twoproblems resulted in the two major consultancy contracts being awarded nearly a year late.In spite of this delay, the Project was ready and in a position to provide the Ministry with theorganisation, personnel and systems that were needed to implement Government's policy fordecentralisation in Repelita VI.

6.2. Staffing of consultanciesAlthough the initial consultancy packages were heavily staffed with foreign consultants during thedesign and initial implementation stages, the bulk of implementation was carried out initially byIndonesian consultants and latterly by Ministry staff, often the IOEs assisted by trained staff from theKanwils. Towards the end of the Project only three individual foreign consultants were involved.6.3. Factors for successIt is the Ministry's view that the success of the project was due to the following factors:

1. The direction of the top management of the Ministry of Public Works, (especially the Ministerof Public Works, the Secretary General as Project Director and the Special Assistant to theMinister on Human Resource Development as the Head of the Technical and Inter-Ministerialco-ordination teams).

2. Establishment of a strong system of project management, with a relatively small PMUproviding central control and co-ordination.

3. The award of consultancy contracts that followed work unit responsibility, for example, acontract for improvement of the work of the Bureau of Law. This was such a key aspect ofachieving results that project management packaged components together as noted in point 5below rather than to combine consultancy on related subjects under one or other of thecontrolling departments, for example there might have been a temptation to group therelatively small contracts for work for the Bureaus of Law, General Affairs and Logisticsunder one management unit in say the Bureau of General Affairs in order to reduce thenumber of PIUJs answering to the PMU. This temptation was resisted and as a result the linesof responsibility were clear and the priorities of the controlling departments were solely toimplement their departments' work.

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4. Replacing key staff in the Bureaus, notably the Bureau of Planning, Pusdiklat and Pusdatawith individuals who are capable, motivated to succeed and professional.

5. Packaged contracts where the work of two components impinged one on the other, forexample personnel and training were grouped in one package. This arrangement made co-ordination easier.

6. Day-to-day control through PlUs formed of personnel from the relevant work unit in theMinistry.

7. The active support of the project by the Kanwils, who were active in implementing the projectin the provinces

8. The use of foreign expertise during the design stage when new ideas and techniques are to betested.

9. Involving Indonesian consultants and the IOEs from the Ministry throughout the design stageand then making them responsible for continued implementation.

10. Using the IOEs and the PIUs for institutionalising the changes that were made.11. Pressing forward on the issuing of various Ministerial Decrees that make it mandatoTy for

departments at the centre and the Kanwils to use the results of the Institutional Developmentand Training Project.

IBRD staff also made a significant contribution to the success of the Project, the details of whichare contained in the following section.

7. THE ROLE OF THE BANKThe IBRD impacted on the Project in three ways:

* through missions, which were sometimes annual and sometimes twice yearly.* both formally and informally through RSI* formally with Washington

7.1. MissionsThe missions were most useful, initially in establishing the Project, but more significantly during designand implementation, when their presence served at least four purposes:

* a review of Project progress for assuring Washington that progress was satisfactory* this same review would re-assure Project Management that they were progressing

satisfactorily and in the right direction.* assisting Project management with obtaining high-level Ministry decisions or action when

necessary.* they were able to review the real position on the ground and from time-to-time were able to

agree when conditions described in the SAR were no longer pertinent and they could thenagree to modify the original detailed Terms of Reference with a minimum of explanation inwriting and consequent delay.

It would have been helpful if the Bank could have maintained a more regular schedule of a missionevery six months to coincide with the publishing of the Half-Yearly Report and it is therecommendation of the Ministry that the Bank should attempt such a schedule on all future projects. Itwould also have been helpful if one of the twice yearly missions could take place during preparation ofthe development budget (DIP) for the following year,

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7.2. Resident Staff in IndonesiaFormal and informal contact with RSI was infrequent but RSI was particularly useful when givingadvice on Bank procedures or requirements and it was possible to obtain action through RSI that couldnot be achieved in other ways.

7.3 WashingtonCommunications with Washington were almost always, by their nature, formal. The bulk ofcorrespondence was related to obtaining no objection letters for the various stages of the procurementprocess. The Bank was not always able to respond to requests for NOLs as quickly as the Ministrywould have liked and it would be helpful if the issuing of certain NOLs could be delegated fromWashington to RSI. An example is the NOL in respect of contract addenda which change the contractsum by less than 10%, which is not required by Washington, but which is needed by the GOI beforepayment can be made against a contract.7.4 Standard Procurement DocumentsAs recorded in paragraph 4.3, the Ministry has prepared three separate sets of procurement documentsat different times. The last two of these have been largely prompted by the IBRD issuing mandatorystandards, one in 1992 and one in 1995. Neither of these mandatory standards was well thought out,that issued in 1992 requires considerable editorial changes within the body of the General Conditionsand is difficult to use as it requires a command of English that is not generally available in the Ministry.The second is FIDIC 1993, which has several matters of principle that are not suited to the Indonesianenvironment. Notably these are: a) nominated sub-contractors, b) dayworks and c) remeasuredcontracts.8. CONTINUING INSTITUTIONAL DEVELOPMENTThe Institutional Development and Training Project loan closed on the 31st December 1996 securingthe results described in the previous paragraphs. However, additional work is needed on institutionaldevelopment within the public works as defined in the operational plan, which is appended to this note.

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THE OPERATIONAL PLAN

1. CONTINUING INSTITUTIONAL DEVELOPMENTThe Ministry will sustain existing systems and, where appropivate

continue to expand and to extend the work done in the IDTP after loan 3112-IND has closed in order to

o maintain existing systems, this will be needed as Government Regulations and Directivesand other external factors change.

o upgrade existing systems in line with new technology when it can give an improvement inthe operation of systems.

o add components to systems that were not included in the outputs for the InstitutionalDevelopment and Training Project.

o modify systems, particularly reports and other management information coming fromsystems, as managers become more familiar with them and demand more information orinformation presented in a different format.

The above can be classified as being the continuing and normal development of systems andprocedures. In addition, the Ministry has the major task of:o Helping the Kabupaten/Kotamadya Public Works in the scheme of decentralisation of

Public Works, to:- Train the technical staff- Solve financial problems- Solve equipment needs

Government has chosen 26 Kabupatens (outside Jakarta which has no Kabupatens) for pilottesting the decentralisation process for all ministries. The selection was based upon theirmanagement ability and the trying out ability to fund the maintenance of installed systems andprocedures. It would be necessary to adapt existing systems to make them suitable foroperating by District Public Works Offices, to install them in the pilot Kabupatens togetherwith any equipment needed and the selection and training of suitable staff.

The Ministry is aware that other areas of its operation need additional development if itis to continue to develop its role as adviser and controller of public works and to adapt to thXnew role that it will play under decentralisation of public works development to the level ofKabupaten IKotamadya and it is prepared to meet the challenge of making the necessarychanges in its organisation, staff, systems and methods.

2. FUTURE PROGRAMME OF WORKThe IDTP system are flexible and adaptable, therefere the Ministry will countinue to

enhance their effectivities and institutionalisation after the closure of loan 3112-IND, in orderto:* maintain systems, procedures and equipment that were designed and installed under the

Project and keep both operating staff and management up-to-date in the systems.* prepare systems, equipment and staff for the initial implementation of PP45/92 in the public

works sector in the twenty six selected Level II organisations and carry out fullimplementation in those organisations.

* prepare for a wider implementation of systems to the remaining2,7kK8 ,upens andKotamadyas.

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* continue to enhance the capability of staff involved in public works throughout the country.* ensure that all of the above is fully documented and is made a legal requirement by

legislation of both the Ministry of Public Works and other Departments, primarily theMinistry of Home Affairs, as appropriate.

Maintenance and trial installation of systems in the District Public Works Offices will befinanced by the routine budget. Extensions to systems and other improvements will be fundedby eduentcad,s ation and tr,ininf staff and the full extension ofsystems to the 26 selected level II organisations will be financed through new loans.The area of focus that each Bureau will address in their ongoing application of the InstitutionalDevelopment and Training Program arePersonnel Svstems (Bureau Personnel)a). Improve system and procedures, organisation and tasks and functions b).Establish careerdevelopment system c). Establish Functional Jobs d). Non-structural job lassification e). Staffneeded to support development (Personnel Planning) f). Improve skill in the Kanwilsg). Develop personnel management system for decentralised operations h). PersonneladministrationTraininz manafement systems (Pusdiklat)a). Install training management information system b). Install training costing systemc). Integrate training programmes (incl. Dinas PU Kabupaten) d). Maximizing RTC utilizationData processing systems (Pusdata)a). Maintain and upgrade existing systems b). Maintain and upgrade existing hardware andsofware c). TrainingPlannin! and Proaramminf (Bureau of Planninf)a). Develop systems for Repelita VII b). Development of database for applications ofprogramme c). Synchronisation of programmed). Development of Performance indicators forcontrol e). staff development f). Develop the central AHP/DSS g). Maintain AHP/DSSKanwil PU h). Budgeting, monitoring and evaluation i). Develop the information systemsnecessary for management and control of the development programme.Foreig aid co-ordination (Bureau of K_LN)a). Countinued dissemination of IDTP results b). Upgrading the system for monitoring forignaid in the provinces c). Development of reporting system for foreign aid co-operationAccounts and finance (Bureau of Bud_et)a). Maintain existing systems b). Implement cost accounting system in all provinces c).Implement the Government accounting system in all provinces d). Develop a consolidatedbalance sheet for MPW e). Training in financial management in all provinces f). To look forclarification to the Ministry of Finance concerning the status of swadana proposal for thelaboratories and RTCInspeCtionand control (Insporate General)a). Start and countinue annual audit programme b). Prepare programme audit guidelinesfrom existing manual c). Modify programme audit guidelines to suit A,B,C

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Contract and contract control (Bureau of LoEistic)a). Prepare regulations on procurement and administration of goods and services b).Implement control of data on procurement of goods and services in the Ministry c). Developsystem for listing and evaluating the performance of national contractors d). Develop aninventory management information system e). Develop an information system for procurementof goods and services and TrainingLeial services (Bureau of Lefal)a). Maintain existing systems and disseminate new regulations b). Train non-lawyers fromDinas PU tk II in regulations covering Public Works c). Train Ministry lawyers in specialistlegal aspect. d). Upgrade the legal information system and connect with National System e).Upgrade hardware and software

Libraries, archives and public relations (Bureau of General Affair)a). Countinue with IDTP programmes b). Seek ways of extending the contribution thatlibraries make to the development process c). Continue with archive training and ensure thatarchiving continues d). Continue to strengthen public relations functions

Oualitv control of construction (Balitban!)a). Maintain existing laboratories through continued staff development and maintanance andcalibration of equipment b). Maintain accreditation of laboratories c). Disseminate standard(SNI) d). Seek legal role for laboratories in testing in order to increase use of facilities.

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Report No.: 16809Type: ICR