PROJECT DEVELOPMENT OBJECTIVES Sectoral and Institutional Context

5 17. Component 3: Road Sector Institutional Development US1.0 million. Providing technical assistance and capacity building support to strengthen disaster risk mitigation in the road sector, including capacity building support for the new environmentrisk mitigation and road safety unit of DGH capacity to conduct disaster risk assessments and planning, risk mapping of land-slides, coastal erosion, earthquake and floods, and analysis of alternative designs for road segments that pass through critical environmental assets and vulnerable areas. 18. Component 4: Contingency for Disaster Risk Response 0. Providing preparedness and rapid response to disaster, emergency andor catastrophic events, as needed. This provisional zero dollar component will be added under this project to allow for rapid reallocation of loan proceeds from other components under streamlined procurement and disbursement procedures. B. Project Financing 19. Lending Instrument. The Project will be financed with a Specific Investment Loan SIL. The Borrower has selected an IBRD Loan with a Variable Spread Option, final maturity of 24.5 years including a grace period of 9 years and annuity principal repayment, at a rate equal to LIBOR for the Loan Currency plus the Variable Spread. 20. Project Financing Table. Table 1 indicates the proposed project cost with financing sources. C. Lessons Learned and Reflected in the Project Design 21. Readiness for Implementation. The experience in Indonesia of past and ongoing roads projects shows that implementation delays were mostly caused by slow procurement processes. In the on-going Strategic Roads Infrastructure Project SRIP delays in the engagement of consulting services was the main cause of overall implementation delays. The same problem was encountered in the preparation of WINRIP with delays in contracting the preparationdesign consultant. Although the part of the problem related to the size and composition of procurement committees has been addressed at a systemic level through the Infrastructure Development Policy Loan IDPL series, delays in the procurement of consultant contracts persist. Timely engagement of the implementation support consulting services is the most critical issue to confirm the readiness for implementation. As such, preparation of the Request for Proposal package for these services must begin early to ensure the requisite consulting services are in place in a timely manner. 22. Quality of Engineering Designs. In the past, there have been some concerns over the poor quality of engineering designs because road sections were bid based on “final designs” that were less than full detailed engineering designs. The professional review of engineering designs introduced in SRIP has improved the quality of design, and will continue in WINRIP. Detailed engineering designs for WINRIP are to meet the same quality standards and specifications, in terms of detailed content and presentation, as those recently prepared for the Eastern Indonesia National Roads Improvement Project EINRIP.