Rebuild The New File Storage Server 1 Background

Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 78

6.7.3 Work Plan in October 2014

1 Completion of The FMIS Application We are planning to complete the development of the FMIS application at the end of October 2014. The modules to be completed is Consultant Services module and Reports module. And then well do a system test. If the system has been running well, then we will disseminate to each Satkers. 2 Data Synchronization from The SIPP to The FMIS Application The SIPP application from DGH as a reference and a source of primary data for financial reports. For it will be synchronized data from the SIPP to the FMIS application. Data synchronization mechanism will be discuss later with the Subdit Infokom of DGH. 3 Rebuild and Restructuring of Folder of The File Storage In accordance with the request of the PMU to restructuring the folder structure on the File Storage server. They asked that the name of 21 civil works package as the root folder. Then all the data and documents will be put into a folder of each civil works package.

6.8 Quality Assurance

After socialization PMM in Padang September 10 to 11, there is a slight improvement of specific PMM bab.7. The Quality Assurance Engineer has revised the chapter and presented and discussed with the BINTEK on 18 September 2014 and 26 September 2014. The chapter has been approved by Bintek. The Manual Quality Assurance had been submitted by CTC to PMU . In the MPR SE must be submit monthly reports of testing or quality control activities for any job that requires testing. Quality Assurance progress are shown in Appendix D.

6.9 Project Risks and Mitigation Measures

6.9.1 Risks Related to Delays

Since the detailed engineering design DED is under responsibility of the Design and Supervision Consultant DSC, delay on DSC establishment affected to the procurement of AWP-2 and AWP-3 sub-projects. As discussed previously, the DED of several subprojects of WP-2 and WP-3 were prepared and completed by respective P2JN. The CTC has then been instructed by DGH to review the DEDs of seven packages completed by the P2JNs package 5, 6, 11, 13, 15, 17 and 19. Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 79

6.9.2 Financial Risks

The following factors will be monitored during implementation of the loan project. • Loan Amount • Actual Tender Prices • Price Adjustment • Currency Fluctuation • Current Estimated Situation No risk was detected until preparation of this report, however CTC prepared revised cost estimates in anticipation of future cost claims to cover contract price escalations and variation orders. A factor of 10 for both additional cost components is applied on the original cost.

6.9.3 Risks Related to Quality

The quality of work is inherently tied to the competence of the Contractors and the diligence of the Supervision Teams. The competence or otherwise of contractors shall be considered at the time of bid evaluation and prior to the award of any contract. The quality of supervision however is influenced by the following factors: • Ensuring that supervision staff levels are fully manned with competent, honest, qualified and experienced personnel. • The provision of properly equipped laboratories with properly trained operators for each package. Package supervision comes under the responsibilities of the immediate supervision teams and the relevant DSC but the Quality Assurance Engineer from CTC will periodically monitoring their performance. CTC s Quality Assurance Engineer not able to prepare quality assurance report because DSC have never forwarded to CTC quality control report. Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 80 7 ISSUES and RECOMMENDATIONS

7.1 Current Situation

The main issues during this month of September 2014 are as follows: a The slow progress of procurement proceedings. b Provisions for additional funds to cover claims for contract escalations and expected variation orders. c The official approval of the Revised Project Management Manual PMM. d The considerable negative slippage behind schedule of two 2 on-going construction sub-projects. e The design revision of four 4 detailed design drawings for the Packages Nos. 7, 8, 10 and 12 which are to be revised in accordance with Nota Dinas No.130NDBL2014 dated September 19, 2014.

7.2 Actions Required

a The main cause of the delay in procurement is attributed to the flow of communication between POKJA, PMU, CTC and the World Bank in finalizing the procurement documents. To minimize or totally eliminate the delays in securing Bank s concurrence and issuance of No Objection Letter NOL, special meeting shall be held regularly among all concerned to discuss each comments and suggestions which are to be incorporated in any documents prior to formally submitting to the Bank. b As the budgets for the price escalation and expected variation orders were not included in the original cost estimates, PMU shall discuss this matter with the higher authorities to request fund allocation to cover the additional cost. c As there are now four 4 on-going civil works contract packages under construction and sooner another four 4 civil works contracts will be awarded, the Revised Project Management Manual PMM shall be formally approved. Although the Revised PMM has been already disseminated to all concerned parties, official approval is needed prior to furnishing copy to the World Bank. d Two 2 of the four 4 on-going construction packages were on an alarming stage due to considerable negative slippages. To be on schedule or reduce the negative slippage to a manageable level, Design Supervision Consultant DSC shall initiate and schedule a high level meeting to be attended by no other than the Contractor s principal and other concerned authorities. Contractors shall be required to submit realistic action plans and catch-up schedule to be implemented, if possible, on a two 2 shifts per day work schedule. e BALAI II Padang have to expedite the design revisions in order that the four 4 Contract Packages can proceed as soon as possible with the disrupted procurement of works. 8 CORRESPONDENCES During the period the CTC received and issued letters. Lists of letters received and issued are shown in Appendix J.