World Bank and GOI Compliance

Western I ndonesia National Roads I mprovement Project 6 - 3

6.1.3 Performance Indicators

Key Performance Indicators are developed and agreed between the World Bank and GOI, and will be monitored over the whole project period the changes in variables will be calculated annually. The set indicators are describe in the project Appraisal Document PAD and the Loan Agreement between the GOI and the World Bank. The overall progress towards achieving the PDO of increasing the effective use of selected sections of national roads along the Western Sumatra Corridor by reducing road user costs is considered moderately satisfactory. Progress in implementation has picked up, and there has been an advance with respect to several project indicators. In addition, a project restructuring is being processed which should bring the project largely back on track. The PMU provided an update on the achievement of the indicator targets. There has been relatively good progress on three of the five intermediate indicators. For one of the remaining intermediate indicators on bridge improvement, progress is expected within the next semester. The last intermediate indicator related to institutional strengthening will be cancelled in the framework of project restructuring. For the PDO indicator on AADT, CTC carried out static traffic counts in March 2015 and confirmed that the original indicator targets are adequate. The mission refined a few indicators definitionsbaselines and updated some indicator targets to take into account the project implementation delays. These changes will be reflected in the upcoming project restructuring. From the baseline 2010 AADT and estimated AADT for the year 20142015, the extrapolated AADT for the year 2013 resulted to 11,254 vehicles per day or 8.8 above the targeted 10,347 vehicles per day in 2013. Shown in Table 6.1 is the comparison between target and actual estimated AADT. Table 6.1 Year Targeted AADT Estimated Baseline 2010 7,837 FY1 2013 target 10,347 FY1 2013 actual 11,254 FY2 2014 target 11,351 FY2 2014 actual 12,696 FY3 2015 target 12,453 FY4 2016 target 13,304 FY5 2017 end target 14,214 Western I ndonesia National Roads I mprovement Project 6 - 4

6.2 Implementation Support Components

6.2.1 Core Team Consultant CTC

The CTC is responsible to provide support to the PMU and DGH in the management of the Project, based in Jakarta. The CTC tasks include financial and progress monitoring and reporting, information management and dissemination, quality assurance and performance review for the Design and Supervision Consultants DSC, implementation and monitoring of the anti-corruption action plan, support for project monitoring and evaluation, and support for implementation of a training program to support project management and implementation. The CTC contract No. 06-20CTCTALN80431112 was signed on 5 November 2012 by both DGH and a Joint Venture of PT. Perentjana Djaja, Yongma Engineering Co.Ltd., and PT. Epadascon Permata Engineering Consultant. The main CTC activities during April 2016 are as follows: • Conducted and delivered Interim Un-audited Financial Report Training No.4 in Padang for Packages 7, 8 and 12. • Prepared Monthly, Quarterly Progress and Bid EvaluationProcurement Reports for Packages 6 and 19. • Monitoring the implementations of the ESAMP, anti-corruption action plans, complains from project site, progress of LARAP, procurement activities and financial progress. • Prepared and issued various letters to PMU and DSC. • Submitted various Reports to PMU concerning environmental and the status of LARAP implementations. • Monitored the actual construction progresses of the twelve 12 on-going contract packages and advised PMU of the current situations of the sub-projects. • Site visit for technical review of road safety audit of Packages 2 and 4 and prepared and submitted Road Safety Audit Report for Provisional Hand Over PHO stage. • Attended Preconstruction meeting Package 8. • Site Inspection for taking over certificate preparation for Package 2 and 3.

6.2.2 Design and Supervision Consultant DSC

The Design and Supervision Consultant DSC will be responsible for design of WP 2 and WP 3 civil works and supervision of all civil works. They will have the role of Engineer under a FIDIC-type contract. The tasks include the preparation and maintenance of a quality assurance plan, validation and updating of designs, supervision of all civil works, environmental and social monitoring and management, and support for financial and progress monitoring and reporting. The DSC will also be responsible for quality assurance of materials and workmanship, certifying whether or not contractors have achieved the required results, as well as documentation and reporting based on the financial management plan. They will prepare a Quality Assurance system covering all subprojects, and continuously monitor the effectiveness of their supervision procedures. The team will be contracted and managed by DGH through the Bina Marga Regional Office Balai II, and will be based in Padang, West Sumatera. Western I ndonesia National Roads I mprovement Project 6 - 5 DSC contract was negotiated in Balai Besar Pelaksanaan Jalan Nasional II Balai-II of DGH. The negotiation result and draft contract have been sent to WB on 25 March 2013 for review and approval. The Bank issued no objection letter on the negotiation results and draft contract with letter dated 19 April 2013.

6.2.3 Study on Slope Stabilization Design and Management

This component consists of technical assistance for analytical work of an alternative design for road segment that pass through critical environmental assets and vulnerable areas especially on slope protection design and management.

6.3 TRAINING TO SUPPORT PROJECT IMPLEMENTATION

The work during this reporting month is actually inseparable continuation of what were prepared and done during previous month March 2016 summarized below:  Continuing the preparation of three training programs to be implemented on the first opportunity, hopefully at least one of them in April 2016: IFR Training, PMM Application Training, and RKPPL Training.  Continuing to update the PMM and other training materials as required.  Continuing to ask for confirmation of the mobilization of contractors and consultants staff of the respective packages. The work during this reporting month was then focused on the following activities: 6.3.1 Continuing to prepare the implementation of three training programs that actually should had been delivered in November-December last year; i.e:  The fourth 4 th IFR Training or Training on Preparing Interim un-audited Financial Report IFR for packages: 07 Indrapura Tapan, 12 Kambang-Indrapura, 08 Batas Kota Pariaman Manggopoh, and 10 Simpang Empat Sp. Air Balam was initially scheduled to be held on 2 nd week of December 2015. However, it was postponed by PMU to mid of January 2016, and then was postponed again to March 2016. However, when the invitation letter was submitted to PMU for approvalsigning on mid of March, this reporting month, it was postponed again and should wait for the signing of the Amendment 4.  The same case also had happened to the 3 rd PMM Application Training, and the 7 th RKPPL Training. Both training programs that initially scheduled to be delivered in November and December last year 2015 had been postponed and postponed again, and finally had to wait until the Amendment 4 being signed.  The Amendment 4 was fortunately signed in the first week of March 2016, so that the three trainings that had been eagerly looking forward to the approval of implementation for a long time, could then be delivered in April and afterwards. Western I ndonesia National Roads I mprovement Project 6 - 6  The work was then focused on implementing the 4 th IFR training and continuing the preparationrevision required for delivery the next other two trainings..  The implementation of the 4 th IFR Interim unaudited Financial Report was held in Padang in two effective days, from April 12 through April 13, 2016. It was attended by twenty-one 21 participants, of twenty-three 23 prospective participants who were invited as shown in the following table. IFR Training Participants Padang, 12 13 April 2016 No Groups of Participants Invited Attended Remarks A SATKER PJN I : WEST SUMATERA PROVINCE 1 Financial OfficialStaff of Satker PJN I West Sumatera Prov. 2 3 2 Financial OfficialStaff of PPK 09 incld: Package 10 4 3 3 Financial OfficialStaff of PPK 10 incld: Package 08 4 1 Sub-Total of SATKER PJN I : 10 7 B SATKER PJN II : WEST SUMATERA PROVINCE 1 Financial OfficialStaff of Sastker PJN II West Sumatera Prov. 2 4 2 Financial OfficialStaff of PPK 15 incld: Pacages: 07, 12 10 6 3 Financial OfficialStaff of PPK 14 incld: Package 14 3 Sub-Total of SATKER PJN I : 12 13 C BBPJN II PADANG 1 OfficialStaff of BBPJN II Padang 1 1 Sub-Total of BBPJN II Padang : 1 1 T O T A L 23 21 Actually, based on WINRIP Timeline, the prospective participants from PPK 14 will be invited for the next IFR Training. However, as the BBPJN II Head of Admin. Division motivated the Satker PJN II to add their participants, then 3 additional participants from PPK 14 joined in this training  Continuing to update the PMM related to the new organization structure of the Ministry of Public Works and Housing as well as the DGH new regulation, NCB procurement , and the experiences of implementing the project up to now.  Asking for confirmation of the mobilization of contractors and consultants in every package. It resulted, based of Status of Civil Works of March 2016, that still only 3 packages of our training target that possibly could be fully addressed by the training in this reporting month, i.e: ~ Package 07 : Indrapura Tapan, status : COW issued on 10 December 2015; ~ Package 08: Bts. Pariaman Manggopoh:: Contract Signed on 28 January 2016; COW issued end of March 2016. ~ Package 12 : Kambang Indrapura; : Contract signed on 28 January 20126, Waiting for issuance of COW.