TRAINING TO SUPPORT PROJECT IMPLEMENTATION

Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 50 3 Ir. Miftachul Munir, MT Dit. Bina Teknik 4 DR.Ir. Maulidya Indah Junica, M.Sc Dit. Bina Teknik 5 Ir. Ahmad Sofian Lubis, M.Si Setditjen Bina Marga 6 Fadjar Agus Wibowo, ST, MT Setditjen Bina Marga 7 Ir. Sugiarto, MT Dit. Bina Pelaks. Wil I PMU 8 Sjofv Rusliansyah, ST,MT Dit.Bina Teknik 9 Ir. Siti Mardiyah Dit. Bina Pelaks. Wil. I PMU 10 Ir. John Girsang, M.Eng.Sc Dit. Bina Pelaks.Wil.I PMU 11 Rien Marlia, ST,MT Dit. Bina Program 12 Ir. Effrizal Effendi EINRIP 13 Ir. Biot Zakaria SRIP • The sessions of the Workshop run in two way communication. The Resource Persons present their respective chapter contents, then encouraging the participants to comment or asking questions. A lot of questions or comments from the participants need to be discussed or clarified. It is then, immediately, felt that the time allotted in the agenda is not quite enough to satisfy the participants. Consequently the agenda need to be revised as necessary. Seven chapters of the PMM have been scheduled to be presented and discussed on the first day of workshop, i.e.: chapters: 1, 2, 3, 5, 6, 9, and 11. However, only six of them can be discussed. Chapter 11 Anti-Corruption Action Plan ACAP has to be postponed to the next day. Moreover, the last session of this first day of workshop can just be ended at 17.45 instead of 17.15 as has been scheduled • Continuing the PMM Socialization Workshop in Padang. It was then second day of the training. The situation of the class has been very similar with the first day. There were a lot of questions, comments, clarifications and discussions. • Minutes of the PMM Workshop, especially concerning the interaction of participants and the resource persons attached. • The workshop was officially closed by the Head of BBPJN II Padang, who was represented by the Head of Administrative Division, Ir. Djoko Priyanto, MT., at 18.50.

6.3.2 Annual Training Program

 Preparation of Financial Management Reporting training for 4 Packages of AWP-1 has been planned to be delivered in September after the PMM had been disseminate on August. However, because the PMM dissemination was postponed to 10 th -11 th September 2014, the Financial Management and Reporting training course being postponed too, and would then be implemented after the intermission early November 2014. Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 51

6.3.3 Progress

 The updated Project Management Manual PMM was socialized disseminated in the workshop on 10 th 11 th September 2014 in Padang, attended by 81 persons.  The prospective participants of the Financial Management and Reporting training were identified.

6.3.4 Activities Plan for next month October 2014

• Continuing to assist PMU in the actions of perfecting the PMM document to be ready for further socializationdissemination. • Preparation and Carrying out the Financial Management and Reporting training early in November 2014 prospective participants, venue, training materials, correspondences, etc. MINUTES OF PMM SOCIALOIZATION WORKSHOP Padang, 10 th 11 th September 2014 First Day, 10 th Sep. 2014 Chapter No. Q u e s t i o n s C o m m e n t s Responses Suggestions Recommendations I 1 WINRIP aims to improve the capacity of road. So, it would be better to also handle the existing bridges, especially adjusting their wide to maximize the WINRIP results. Are the bridge works also handled ? The bridge works are not included as the main activities to be done in WINRIP. If the execution of the works design etc is not too complicated, the bridge works could be proposed under the APBN or proposed to the World Bank 2 Could the PMM be developed in English version? It would be sought to develop its English version, but it will take a rather long time. II 1 In the implementation, has the PPK to always via intermediary of the SE to coordinate with the Contractor? There will be explanation in Chapter 7 section 7.3 of PMM concerning delegation from the Owner to the Engineer. All the processes of backing up data preparation of MC must be done together by SE, Contractor, and PPK or represented by Field Supervisor. PPK must be ready to provide Field Supervisor in field whenever required. 2 When the field engineering has been done, if thee is differences of price, who will be the decision maker? Which price will be used? Efforts will be made in order that there will be no difference or price; but if any, it must be discussed in Satker, and if the decision could not be made, then being discussed in Balai , and if still no decision then being proposed to Jakarta Central Government. To be clearer, look at page 7.37 of PMM. Furthermore, Satker P2JN has to have its own Technical Team chaired by the Head of Satker P2JN in each province 3 Is P2N still as the PO for WINRIP projects? Yes, actually P2JN is the PO of Supervision according to the decree III 1 In West Sumatera there are two roads which condition are still good enough. Are they really wanted to be included in WINRIP ? So far the design of the two roads have been done, being focused on working on around road shoulder, ditch, etc. 2 Sub-Chapters Sections 3.5 and 3.6 are not discussed in this Chapter V 1 Is the technical specification standard used for NCB similar with those for ICB ? Yes, the technical specification used in NCB and ICB are the same. The differences are in their General Conditions. 2 Why are the design standards being used in WINRIP sub-projectspackages different each others ?: For packages that have been running AWP-1 the design refers to Specification 2010 revision 1, while the next packages refer to Spec. 2010 revision 2. It s because when the AWP-1 design was in process, the Spec.2010 revision 2 has not been issued. 3 How long is the time for clarification of the bid documents ? For ICB, the question should be addressed no longer than 21 days, and the answer should be given 14 days at the latest. Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 52 4 The design is often not in mutual accord wih the real condition in the field. Has the design preparation not been based on field survey ? If in the execution there must be changes, the stipulation will be discussed in Chapter 7 Contract Implementation 5 The RPB owner estimate that should be prepared by PPK should not be very different with the EE which has been approved. But when the field engineering of road is done, there are many differences. If this happens, how to follow- up ? If the difference is so great, the Physical PPK may coordinate with Planning PPK to correct the design with the actual condition in the field before the preparation of the RPB For the future, it is preferable to allocate time for reviewing an discussing the design which has been made under the actual condition prior to preparation of the RPB The volume that finally used is not always the volume in the EE , if it is really required and the consideration is rational then re-evaluation could be done in accordance with actual condition. 6 To whom is disavowal-appeal addressed ? When disavowal has been responded, then being denied again, then it will be called disavowal- appeal or denunciation? In ICB, there is nothing called disavowal-appeal , all disavowal or denunciation have to be responded For ICB, no limit for Pokja to respond, all disavowal must be responded. Explanation in PMM should be clearer, it will be better if the explanation for NCB and ICB are separated V 7 In ICB bidding, there is only 1 or less than 3 bidders, how it will be ? There are ideally at least 3 partners submitting the bid documents. However, if just the opposite case happens, it will be evaluated and discussed again. 8 There is no disavowal-appeal in ICB, but there is often letter of denunciation directly addressed to the Minister. Should the Pokja respond it, or the Minister does ? In principle, it has to be responded. Concerning who should respond and how is the mechanism of responding, will be discussed again with Bapekon . 9 What is meant by the word responsive in Bid Evaluation ? It means fulfilling administrative requirement, with a proper price market price It is suggested to change the word responsive because it is very subjective and may bring about some meaning If it is replaced with a more denotative word, it may be awkward, and actually it does not a matter for the World Bank. However, it will be discuss again with the Bank. 10 There are 3 bidders, then the two of them were declared as failed of success, and 1 remaining bidder has higher bid than HPS. What to do then ? Just submit it. In WINRIP, the evaluation of price is just arithmetical correction, never discharging. 11 Which of Contractor s schedule to be reference, whether the schedule at the moment of bidding or the schedule after being revised? Why the schedule that has been submitted in the bidding must be revised ? The schedule which will be used is the one that has been agreed by related parties PPK, Engineer, Contractor. The schedule which has been submitted in PCM is only a concept, that has possibly to be revised again For the future, Pokja has to seriously evaluate the schedule submitted in the bid documents, since it is closely related to escalation, although the requirement of this schedule just states that not exceed the execution period. Schedule for submission of escalation is the schedule that was agreed by the related parties. Therefore in the future PPK and Engineer must also be more careful to check the schedule submitted by Contractor for approval. ix 1 Who does determine the input and measure the output? The Officials of Echelon II an I level. 2 If the target is not achieved after being evaluated, is there any penalty ? There is no penalty. The result of evaluation will be used as consideration for the next program. 3 Who is responsible to do the measurement of the items in Table 9.1 ? Since when it has been done and by whom ? For the existing data, the P2JN is responsible to provide the data then being confirmed to the Balai and then being submitted to the Directorate of Planning PMU and CTC. Measurement is done by PMU assisted by CTC every year since the execution of construction was begun. 4 When will the measurement for evaluation be done ? Measurement to the outcome is done one year after the output was realized Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 53 5 What does the format of monitoring Report of PPK Performance Table 9.2 refer to ? Revision of Table 9.2 is still possible to be done, being brought into line with the PPK Performance Report which is used at this moment. 6 When should the reporting of monitoring by SatkerPPK be done It should be done periodically monthly, quarterly, yearly, and step by step, gradually. It is better to write in PMM paragraph 9.3.4 b: Performance reporting is done periodically and gradually Second Day, 11 th Sep. 2014 Chapter No. Q u e s t i o n s C o m m e n t s Responses Suggestions Recommendations X 1 From 21 WINRIP packages, how many packages that have been certified as functionally proper road ? For Balai I, it does not exist yet, because the road sections in the area of Balai I will be tested at the end. For other Balai they have possibly been tested, but then certificates have not been issued yet. 2 Management handling of B1 administration is handled by the Balai , not between the PPKs 3 The new regulation states that the wide of road must be 7.6 M, while in the design it is still 7 M. The test for functionally proper road is guided by the road planning. If there is nothing can be done related to the design or land, the technical requirement could be made lower but the other aspects of roads, e.g. traffic signs and environmental surroundings must be more control in order that the road is still safe although its certificate is still conditional. To get the certificate of functionally proper and safe road, it is not just the technical requirements of road that should be paid attention, but also the environment around the road. If the requirement of functionally proper is not fulfilled yet, the road can still be categorized as conditionally proper, as long as full safety. A road may have only certificate of conditionally proper, but in future the government should be committed to program the road will get the certificate of functionally proper road. 4 Do all parties in WINRIP Contractors and Consultants have to make experts on road safety available ? Yes, they have to. But up till now the Contractors just have K3 Supervision expert. PMU has to ben sue that there is a road safety expert in all parties Consultants and Contractors. There is now penal law procedures for road operator as well as road users related to road safety. Therefore all should be attentive to all aspects of road functionally proper or conditionally proper and safe. All environmental documents must be completed. If there is a document which is not properly complete yet, it will be better not to start with the construction works. All design must integrate environmental aspect. CTC will check the environmental integration in the design and make sure the application in the execution. The Supervision Consultants CTC and DDSC should have all references of environmental permit at the location of the package. 5 Why can the design that is not integrated with environment escape from CTC supervision ? All this time CTC has several times asked the designer to change the design in accordance with the regulation. CTC has also provide provisioning training on preparing environmental documents. On the PCM, the Contractor must have submitted all environmental management plan during the construction works. Starting 1 January 2015, concerning land acquisition should follow the Perpres No. 40, 2014 Presidential Regulation No. 202014. In WINRIP, HIVAIDS is included in the Loan Agreement. Therefore PMU must be sure that the Contractors facilitate information about HIVAIDS that is arranged by DSC coordination with CTC 6 In package 2, there is steep slope area that requires specific design and additional fund about 1.1 M for land acquisition, and this has been approved by the World Bank. But, referring to the result of the last coordination We may follow the result of the last coordination meeting, but it has consistently been communicated to the World Bank and must get NOL from the World Bank for the last design to be used, because it Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 54 meeting, the design will not be used because of limited fund and willingness of the community. How and what action will be better follow up for this matter ? will later on be related to the test of functionally proper road. Second Day, 11 th Sep. 2014 Chapter No. Q u e s t i o n s C o m m e n t s Responses Suggestions Recommendations VIII 1 Correction of Sub-Chapter 8.2.2 point a: Legalization of DIPA constitutes decision by BLN  . change with .. by the Directorate General of Treasury 2 Why has SP3 not been issued since the submission of advance payment until the payment of MC 4 ? This is because of several things, e.g.: SP3 was submitted at the end of the year, so that it has been closing date for the APBN, so it is then included for next year; or the submission of SP3 is now in process in SPAN, that is rather complicated. 3 For IFR reporting, which form to be used should be consulted again, and it will be better to arrange special session to learn about filling in the IFR and FMIS forms. 4 What is actually used in WINRIP, COW or SPMK? And also for finance, using MC or MSIPC ? WINRIP has used COW and MSIPC. Concerning COW or SPMK, this is actually just a matter of terminology, it just need to be adjusted in complying with COW. About MS, Contractor persists in having to prepare MS every month, however it could only be claimed if the work has been 1 above the target in the form of IPC. Financial audit is done by the BPK RI There are 3 types of audit: Semester Audit, special Purpose Audit, and Performance Audit. Vii 1 In the contract document Particular Condition it stated that the authority of the Engineer has persisted to get PPK approval, while according to Fidic, the relation between Engineer and Contractor is in the form of straight line. The decision that may cause contract change must by means of the Employer s approval. 2 If there is a difference between General Condition and Particular Condition, which one to be followed ? Hierarchically, Particular Condition is higher than General Condition, but for some crucial things, it should consistently get opinion from the Employer. Concerning time extension, the Engineer can only set it, the decision is persistently pass trough the Employer 3 Since when is the execution period ? Time Argo starts working at the moment when COW is signed after PCM 4 Can the field hand over and signing of COW be done at the same time ? It can if 4 provisions of issuing COW has been fulfilled? But, because WINRIP is a loan, so the rules determined by the World Bank should be considered. 5 If the advance payment has not been received yet after 180 days, may the contractor cancels out the contract. Yes, he can 6 The Contractor must be sure that there is Quality Assurance from their side. 7 At the time of mobilization of Supervision Consultant personnel DSC it should be made sure that the personnel field supervision team are along with clear facilities and job-desk. If it is necessary, do the provisioning first before the FST go to the field. 8 When mobilizing the laboratory, all equipment and personnel must have been ready, if any negligence happens, it is the task of the Engineer to overcome. 9 If the Contractor ask for additional time based on strong reason, how is the procedure? Can he just submitting it to the Engineer and then to PPK? Change of time, included in change of contract, must be agreed by the Lender. 10 Should all the equipments have been available ? The main equipment that should be available at mobilization time should be in compliance with those included in the bid documents. 11 Holding point must not wait the construction work fully run. Stage by stage the work should be checked to be sure that the first work fulfilling standard and could be continued to the next stage. Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 55 12 Can the Contractor submit the IPC without collecting the MS first ? Already arranged in the General Condition that every month the Contractor must submit the MS to the Engineer 13 The administration of Quality Assurance is still very confusing. For Quality Assurance forms, it will be ascertained by PMU who will be responsible and how is the process. 14 For all possibility of contract variation related to disagreement of drawing with field condition, follow the regulation stage by stage, prepare all supporting documents and tell the change issues before negotiation with the Lender. If there is difference between drawing with BOQ EE, and BOQ EE is smaller than the drawing, soothe drawing become s guideline, then carry out field visit to re-check the deformity of the drawing with the real condition. 15 How is actually using the provisional sum? Can the provisional sum be used for escalation? Actually the provisional sum is not for escalation fund. For escalation the Contractor should submit addendum. But, if there is a policy and it has been approved by the Lender, the provisional sum could be temporarily used for escalation, while awaiting submission of addendum. 16 Will the Contractor s work schedule be reduced by the National Vacations? The solution of the work schedule that being reduced by the National Vacation is not substitution or addition of day, but addition of equipment so that the result of work would not be influenced by the National Vacation. 17 May the PCM be conducted more then once? PCM is conducted once only, but RMK could be revised more than once. 18 There is example written in the PMM document about Letter of Assignment of the FST from the Team Leader to PPK, along with the competences and authority of FST. IV 1 PPK has to be sure to receive design document that already officially signed. Recheck in the PMM who have the competence to sign the design document. 2 For the case that the design is different with the field condition, the first designer should be confirmed and if they are not in mutual accord it should be admitted by him. The procedure is: submit to DSC, then DSC will submit to Balai, and Balai will submit it to the Directorate of Technical Affairs Bintek. All processes should be facilitated by PMU. 3 The result of audit to the design should also be submitted to the Lender, so then Lender can support the contract variation or other changes if required. Submission of the result of audit should also attach following up recommendation. 4 For all problems in the field, please being reported in accordance with the procedure and being completed with supporting data. XI 1 What to do if the Third Party Monitoring TPM Team members act arbitrarily and squeezing ? TPM team members have been selectedrecruited through selection processes by PMU and their job are tied in agreementcontract and fuly supervised by PMU. If that problem happens, please Contractors report to PPK to be followed up 2 Correction on Table 11.4, written on the title of the Table: EINRIP. It must be changed with: WINRIP. Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 56

6.4 Anti Corruption Issues

6.4.1 Anti-Corruption Action Plan ACAP

The main duties of the Community Development Officer are implementation of Anti-Corruption Measures and Monitoring their Effectiveness. Provide assistance as required with the establishment of anti-corruption measures necessary to support the project and monitor and report their effectiveness based on the Anti-Corruption Action Plan ACAP agreed between the World Bank and the DGH. The following tasks particularly need to establish procedures to be undertaken:  Selection of Community Representative Observers CROs of civil society groups to attend the procurements process on key procurement steps including pre-bid meeting and site visit, bids submission and bids opening and the announcement of the bid winner. These CROs will be invited from local universities or other selected independent institutions, and will sign the attendance list for the procurementselection process.  Establishment of a Third Party Monitoring TPM mechanism, whereby the media and civil society groups can become involved in monitoring the progress of the project. This mechanism will include regular sharing of information with the media.  Establishment and Management of a Complaints Handling Mechanism CHM, which includes maintaining project complaint log and filing to monitor status of follow-up of each complaint. This mechanism will include provision for follow up investigations of substantial complaints by the Inspectorate General of Ministry of Public Works or third party audit to ensure independence and reliability of the system. The CTC assignment concerns the monitoring of the aspects of Anti-Corruption Action Plan ACAP implementation and where required act pro- active in resolving issues when such a matter arises. The Community Development specialist has a major role in monitoring performance and assists PMU in the set-up and follow-through of the Complaints Handling Unit CHU for the ACAP related incidents  Enhanced Disclosure Provisions and Transparency, Ministry of Public Work MPW will provide necessary information in the Project Implementation Plan PIP, Project Management manual PMM on their website, and in the bidding documents, such as contact point for complaint mail and e-mail address, phone, fax, text message. The contact will also include the Bank s Fraud and Corruption Hotline. MPW will hold Annual Accountability Meetings to enhance accountability and project information sharing with civil society. The PMM will provide guidelines on disclosure of information related to the project. MPW official website will display critical information on WINRIP to enhance both internal and external monitoring of the project

6.4.2 Community Representative Observers CRO

The Anti-Corruption Action Plan ACAP activities on Community Representative Observers CROs, was adjusted and supported the progress of procurement activities. The activity on the Community Representative Observers CROs during September 2014 are as follows: Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 57 1. September 1, 2014. Carried out the selection of CROs for package 11: Bantal Mukomuko under Satker PJN I, Bengkulu and package 13: Simpang Rukis Tanjung Kemuning under Satker PJN II, Bengkulu. The CRO selection was held in the office of Satker PJN PIUs of National Roads Implementation Region I Bengkulu, Jalan Ir. Rustandi Sugianto KM. 12+225 Pulau Baai Bengkulu, and the meeting was coducted by Ir. Bambang Widyanto, MT Kepala Bidang Pengendalian Sistem Pelaksanaan, Pengujian dan Peralatan BBPJN III Palembang, and attended by elements of: a. Balai Besar PJN Region III Palembang b. Satker PJN Region I, Province of Bengkulu and Satker PJN Region II Province of Bengkulu, c. Procurement Committee Pokja Pengadaan for Satker PJN I and Satker PJN II Prov. Bengkulu, d. PPK 01, Package 11: Bantal Mukomuko, e. PPK 06, Package 13: Simpang Rukis - Tanjung Kemuning, f. CROs Candidates from University of Bengkulu UNIB, and g. CTC WINRIP Community Development Officer Results of CROWPM Selection: 1. Elected CRO for Package 11: Bantal - Mukomuko is Ms. Hesti Aulia Sari, ST from Universitas Bengkulu UNIB, and Mr. M. Fauzi, ST, MT from Universitas Bengkulu UNIB as substitute CRO.. 2. Elected CRO for Package 13: Simpang Rukis - Tanjung Kemuning is Ms. Hot Maria Angelina, ST from Universitas Bengkulu UNIB, and Ms. Rendesti Nofy Yelizar, ST from Universitas Bengkulu UNIB as substitute CRO. After the selection of CRO, continued by the preparatory training for the elected CROs. The training was carried out by Community Development Officer of CTC WINRIP as the Facilitator. The Subject matters of the training were as follow: - Overview of the WINRIP project. - Anti-Corruption Action Plan ACAP in the Implementation of WINRIP - Scope of Duties of the CROs on the Procurement Process. - CRO s Report and financing. 2. September 8, 2014 Community Representative Observers for Package 11: Bantal Mukomuko, Ms. Hesti Aulia Sari, ST from Bengkulu State Univercity UNIB, and Ms. Hot Maria Angelina, ST from Bengkulu State Univercity UNIB CRO for Package 13: Simpang Rukis - Tanjung Kemuning had attended Pre-Bid Meeting and site visit for both packages by invitation of the Procurement Committee Pokja Pengadaan. 3. September 22, 2014 Community Representative Observers for package 05: Simpang Rampa Poriaha, North Sumatera Province, Mr. Medis Sejahtera Surbakti, ST, MT attended the Bid Submission and Bid Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 58 Opening on September 22, 2014 by invitation of the Procurement Committee Pokja Pengadaan WINRIP North Sumatera Province. The activities progress of Community Representative Observers CROs from January 2013 until September 2014 , as shown in Appendix H1.

6.4.3 Third Party Monitoring TPM

1. On September 1, 2014, the Decree on Establishment of Third Party Monitoring for AWP-1 WINRIP packages 01, 03 and 04 was signed by of the Director of Planning, Directorate General of Highways as the Chairman of PMU WINRIP. 2. The Decree on Establishment of Third Party Monitoring TPM for package 02 still waiting for the written statement from TPM s Institution to the PMU, and then the Decree will be signed. 3. The Employment Agreement or Memorandum of Understanding between TPM of packages 01, 03, and 04 with the lead firm of CTC WINRIP still to be signed. The Progress of Third Party Monitoring TPM Activities from April 2013 up to September 2014 and the works plan is shown in Appendix H2.

6.4.4 Complaint Handling System CHS

The Community Development Officer with collaboration with MIS Specialist has developed a software application of Complaint Handling System CHS in integrated to website of WINRIP http:www.winrip-ibrd.com. In the implementation of Complaint Handling System CHS essentially there are four main components as follows: • Data Entry. • Complaint Registration. • Complaint Assessment. • Field Clarification and Analysis. • Problem Solving and taking the Decision The final draft of Complaint Handling System the framework of the complaint procedures on the web site of WINRIP and provided ACAP inputting data in the web site has ready to be operated. However these applications still continue to be refined by considering input from various parties. The CHS team has been monitored and noted the public complaints via SiPP website and WINRIP website, but until now have no complaint about the WINRIP programs. The CHS Activities is shown in Appendix H3.