Current Implementation Situation Civil Works

Western I ndonesia National Roads I mprovement Project 1 - 3 Length Ction Km Period J N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 1 Krui - Biha 25,00 21 mth 8 Jan14 2 Padang Sawah - Sp.Empat 40,90 24 mth 6 Jan14 3 Manggopoh - Padang Sawah 32,00 24 mth 6 Jan14 4 Ipuh - Bantal 42,40 24 mth 10 Jan14 5 SIMPANG RAMPA - PORIAHA 11,10 18 mth 18 Jun15 11 Feb17 11 BANTAL - MUKOMUKO 50,10 24 mth 23 Feb15 11 Feb17 13 SP RUKIS - TJ KEMUNING 56,30 24 mth 11 Feb17 17 Sp.Gn.KEMALA - Pg. TAMPAK 36,80 24 mth 04 Sep15 23 Agt17 6 PS. PEDATI - KERKAP 25,00 15 mth 11 Mar15 02 Jun16 19 LAIS - BINTUNAN 11,60 10 mth 11 Mar15 CONST RUCT ION 300+125 days 08 May16 15 SIBOLGA - BATAS TAPSEL 36,00 27 mth 20 Nov15 06 Feb18 7 INDRAPURA - TAPAN 19,50 21 mth 10 Dec15 30 Agt17 8 BTS.Kt PARIAMAN-MANGGOPOH 46,80 24 mth 23 Mar 16 CONST RUCT ION 720 days 10 SIMPANG EMPAT - SP.AIR BALAM 61,70 24 mth 12 KAMBANG - INDRAPURA 55,20 24 mth 14 PAINAN KAMBANG 31,50 21 mth 16 SEBLAT IPUH 34,50 21 mth 20 LUBUK ALUNG SICINCIN 14,60 18 mth 21 LUBUK ALUNG KURAITAJI 16,80 18 mth 9 RANTAU TIJANG-KOTA AGUNG 42,00 The Road has been constructed by MPW within 2011-2013. Road condition is good. Cancelled 18 MUKOMUKO-BTS SUMBAR 25,80 The Road has been constructed by MPW within 2011-2013. Road condition is good. Cancelled Original target : 715,60 km ENVIRONMENT SOCIAL SAFEGUARD Revised target : 640,00 km Prequalification Detail Eng Design LARAP Study Road Safety Owners Estimate Appraisal Public Consultation Procurement Sign Contr Bid Document LARAP Implementation Preparation for Commencement of Work Standard Biding Document PQ ICB ICB ICB ICB ICB 10-Jan-16 CONST RUCT ION 640 + 93 days 19-Apr-16 20-Mar-16 08-Apr-16 CONST RUCT ION 540 days Pack PACKAGE NAME 2012 2013 2014 2015 2016 2017 2018 CONSTRUCTION Review DED RS PQ PROC Review DED RS PQ DED SBD OE + BD DED DED RSA REVISED DED OE BD DED RSA REVISED DED OE BD DED Review DED RS CONSTRUCTION CONST RUCT ION 450 days SBD OE + BD CONST RUCT ION 720 days CONST RUCT ION 720 days PROC PQ RS Proc COW SBD CONST RUCT ION 730 + 105 days CONST RUCT ION 730 + 75 days CONST RUCT ION 730 + 90 days DED RSA REVISED DED OE BD DED RSA REVISED DED OE BD DED OE BD Review DED RS PROC PROC PROC Review DED RS PQ Rev-DED RS PROC CONST RUCT ION 720 days ICB ICB ICB ICB NCB NCB NCB Review DED RS Review DED RS SBD OE + BD CONST RUCT ION 810 days CONST RUCT ION 630 days 22-Jul-15 PROC 12 Mar18 COW CONSTRUCTION Rev-DED RS Rev-DED RS Rev-DED RS ICB ICB ICB NCB NCB NCB NCB COW PROC COW PROC PROC PROC CONSTRUCTION CONSTRUCTION DED CONSTRUCTION Actual Implementation Timeline of WINRIP Western I ndonesia National Roads I mprovement Project 1 - 4

1.2 Disbursement

Loan Allocation and Percent Disbursement To Date REF 1.25 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 Month C om pl et e Actual Expenditure USD 52.94 mil 21.18 WI NRI P ACTUAL PROGRESS UP TO MARCH 2016 AND FORECAST UP TO DECEMBER 2017 ACTUAL March 2016 Forecast March 2016 Forecast Expenditure USD 150.38 mil 60.15 Deviation = 38.97 The total disbursement summary from the loan by The World Bank to the end of March 2016 was USD 52,938,748.41 equivalent to approximately 21.18 of the loan funds. The following table summarizes the individual disbursements as calculated by CTC but retaining the total disbursement from Client Connection at the end of March 2016. Appendix A shows the Overall Loan Progress Status. Category Description Loan Restructuring Amount US Disbursement This Period Previous Disbursement Totals Disbursed to End Marc in US Disbursed 1 Part 1 Betterment and Capacity Expansion of National Roads. 220,400,000.00 2,794,212.51 44,560,655.07 47,354,867.58 21.49 2 Part 2 Implementation Support 17,000,000.00 5,583,880.83 5,583,880.83 34.90 3 Part 3 Road Sector Institutional Development 4 Part 4 Contingency for Disaster Risk Response Unallocated 12,600,000.00 Original Loan Amount 250,000,000.00 2,794,212.51 50,144,535.90 52,938,748.41 21.18 Breakdown of amount disbursed during the period March 2016 are the advance payment of newly commenced subproject and for Statement of Work Accomplished for the following civil works contract packages : • Package No. 1 : MC Nos. 23 and 24 USD 326,297.26 • Package No. 2 : MC Nos. 24 and 25 USD 158,431.89 • Package No. 3 : MC Nos. 24 and 25 USD 228,489.35 • Package No. 8 : Advance Payment USD 1,910,996.77 • Package No.17 : MC Nos. 3 and 4 USD 169,997.24 Unpaid balance from previous work accomplished covered under the same MC Nos. 23 and 24 in December 2015 because of insufficient funds from LOAN DIPA s 2015. Western I ndonesia National Roads I mprovement Project 1 - 5

1.3 World Bank Implementation Review Mission and Site Visit

During this period March 2016 the World Bank s Technical and Financial Audit Consultants TFAC mission performed and conducted site audits on Package 11 Bantal Mukomuko and Package 19 Lais Bintunan. The mission visited the two 2 contract packages from February 29, 2016 to March 4, 2016 in order to access the following :  The quality of works implemented by the Contractor, site management and quality control and compliance of equipment.  The actions taken by the Design Supervision Consultant DSC concerning quality control role.  Follow-up inspection of what actions taken up by the Contractor on the remaining non-conformance works that were previously inspected way back in November 2015. As the month ended, the regular monthly progress meeting was held to review andor update the implementation progress and monitoring the key activities on the Ägreed Key Action Plans . Also taken up during the meeting was the presentations of the results of the TFAC audit reports and recommendations to rectify the non-conformance findings.

1.4 Procurement of Civil Works Contract Under Category 1 of the Loan Agreement

The current status of Contract Packages which are under final procurement stage are as follows :

1. Package No.8 Bts. Kota Pariaman - Manggopoh 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 46.80 kilometers. The Contract Package is procured thru the post qualification and International Competitive Bidding ICB procurement method using the Full e-Procurement System. As previously mentioned in earlier reports, Contract Agreement has been executed on January 28, 2016 between the Government of Indonesia GOI and PT. PP Persero Tbk PT. Statika Mitra Sarana J.O for a contract amount of Rp. 355,500,000,000 and 720 calendar days contract time. No Objection Letter NOL on the signed Contract Agreement and Form 384 for disbursement purpose has been issued by World Bank on February 18, 2016. Notice To Proceed NTP to commence works has been issued on March 23, 2016 which is considered as day 1 of the 720 calendar day contract period.

2. Package No.10 Sp. Empat

Sp. Air Balam 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 61.70 kilometers. The Contract Package is procured thru the post qualification and International Competitive Bidding ICB procurement method using the Full e-Procurement System. The revised Bid Evaluation Report BER which was resubmitted to the Bank on Western I ndonesia National Roads I mprovement Project 1 - 6 February 19, 2016 has been concurred by the World Bank on February 22, 2016 by issuing a No Objection Letter NOL to award the contract to the joint operation of PT. Lancarjaya Mandiri Abadi and PT. Cahaya Tunggal Abadi in the amount of Rp.424,285,260,782.50 with 720 calendar days time completion. However, the announcement and notification of the award winner has been witheld temporarily due to conflict with the Presidential Regulation No.54 of the Year 2010, Article 79, Paragraph 2 and Ministerial Regulation No.31 of Year 2015, Article 6d, Paragraph 1 and 2 in which the post evaluation of bids is not in line with the current regulations.

3. 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 post qualification and International Competitive Bidding ICB procurement method using the Full e-Procurement System. As previously mentioned in earlier reports, Contract Agreement has been executed on January 28, 2016 between the Government of Indonesia GOI and PT. Lancarjaya Mandiri Abadi PT. Cahaya Tunggal Abadi JO for a contract amount of Rp. 358,650,400,000 and 720 calendar days contract time. Copy of the signed contract has been submitted on March 7, 2016 to World Bank for request the issuance of Form 384 for disbursement purpose. A day after the submission, the Bank, on March 8, 2016, issued No Objection Letter NOL and the Form 384. Issuance of Notice To Proceed NTP to commence the works is still to be issued subject to substantial completion of compensating the Project Affected People PAP.

4. Package No.16 Seblat-Ipuh AWP-3

The sub-project is to be implemented under implementation schedule AWP-3. The Project road length covers 34.50 kilometers and is located in the Province of Bengkulu. The Contract Package is procured thru post qualification criteria and National Competitive Bidding NCB method using the Full e-Procurement System. Bid Evaluation Report BER has been completed by POKJA and submitted to World Bank on January 11, 2016 for review and issuance of No Objection Letter NOL. However, per Bank s letter of January 20, 2016 regarding results of their prior review of the BER have comments on the proposed disqualification of five 5 lower priced bidders. In response with the Banks comments, POKJA explained in details the reasons to disqualify the five 5 lower priced bidders. The detailed explainations, justifications and resubmission of the Revised Bid Evaluation Report BER were forwarded to the Bank thru letter of March 21, 2016 by the Director of Road Network Development. The Revised Bid Evaluation Report BER and recommendation for award of the contract remain to be the same bidder as previously proposed in the original Bid Evaluation Report BER. Due to the disqualification of the five 5 lower priced bidders, POKJA still propose and recommend the award of the Contract to PT. Hutama Karya Persero for a contract amount of Rp.266,120,828,000.