World Bank Implementation Review Mission and Site Visit

Western I ndonesia National Roads I mprovement Project 1 - 6

5. Package No.12 Kambang - Indrapura AWP-2

This sub-project is under implementation schedule AWP-2. The project roadline is located in the Province of Sumatera Barat having an approximate length of 55.20 kilometers. The Contract Package is procured thru the Prequalification and International Competitive Bidding ICB procurement method. As mentioned in previous Monthly Progress Report of August 2015, the bid opening took place as schedule on August 13, 2014 in Padang. The lowest canvassed bid is submitted by PT. Adhi Karya PT. Yasa B.P. joint operation in the amount of Rp. 326,796,600,000 which is 28,58 below the approved Owner s Estimate OE of Rp. 457,568,535,000 while the 2 nd lowest bid is quoted by PT. Lancar Jaya M.A. PT. LTA Joint Operation in the amount of Rp. 358,650,419,000 or 21.62 lower than the Owner s Estimate OE. However, based on the evaluation of the Procurement Committee POKJA, the 1 st and the 3 th lowest bidder failed to meet the qualification. Due to failure of the 1 st and the 3 th lowest bidder to satisfy the qualification, POKJA evaluated the bid of the 2 nd and the 4 th lowest bidder wherein the bidder fulfilled all qualifications and requirement criteria, thus, POKJA recommended the award of contract to PT. Lancar Jaya Mandiri Abadi PT. Cahaya Tunggal Abadi, JO with a contract amount of Rp. 362,518,232,799,14 the 1 st candidate and recomended the 2 nd candidate to PT. Waskita Karya Persero with a contract amount of Rp. 434,444,330,984.09. The Bid Evaluation Report was forwarded to the World Bank to request confirmation and issuance of No Objection Letter NOL on the BER and award of Contract, however, the Bank thru their letter of October 19, 2015 required further clarifications of the General and Specific Construction Experience and Original Integraty Pact of the 1 st lowest bidder and to review inconsistensy result of bid evaluation to the 2 nd and the 4 th lowest bidder.

6. Procurement of the Last Four 4 Civil Works Contract Packages

Status of the last four 4 remaining contract packages which are scheduled for procurement during the last half of the Year 2015 are as follows: - Package No.14 Painan - Kambang AWP-3 • Associated bidding documents are already finalized, the Committee is preparing the Procurement Process. - Package No.16 Seblat - Ipuh AWP-3 • Proceed to the Procurement Process. - Package No.20 Lubuk Alung - Sicincin AWP-3 • Associated bidding documents are already finalized, the Committee is preparing the Procurement Process. - Package No.21 Lubuk Alung - Kuraitaji AWP-3 • Associated bidding documents are already finalized, the Committee is preparing the Procurement Process.