14 - 7 14.5.2
Use of funds
Component 4 funding can be used for reconstruction of the following public infrastructure: Roads
Bridges Drainage infrastructure
Other road related infrastructure
Component 4 funding can also be used for technical assistance activities, goods and services, such as engineering designs, work supervision, environmental mitigation activities, equipment, and materials for
emergency works.
14.5.3 Hazard proofing
Reconstruction should incorporate an appropriate protection structure proofing against future hazards. The Design and Supervision Consultants DSC will provide advices on the design of the required hazards-proofing
structure.
14.5.4 Geographical coverage
The Western Sumatera regions of the country, which fall under the scope of the project, are eligible.
14.5.5 Amount allocated
The funds of Component 4 will be used to finance 100 of the related reconstruction activity, using the existing standard unit costs for construction approved by a competent agency. Cost estimate includes the Government
taxations.
14.6 PROCEDURE TO TRIGGER COMPONENT 4: CONTINGENCY FOR DISASTER RISK RESPONSE
Component 4 will be triggered by a disaster caused by a natural hazard such as cyclones, tropical storms, floods, earthquakes or landslides, having a significant impact on public infrastructure.
To enable the use of contingency funding, a request must be sent to the World Bank by the legal representative of the Borrower as per the Loan Agreement, indicating i the interest of the Government of
Indonesia to activate Component 4 and reallocate a specific amount of funds to it; ii that a situation of disaster has occurred in the Western Indonesia Corridor and that a Situation of Emergency Status has been declared;
and iii a brief description of the activities to be financed and their estimate cost.
The Declaration of the Situation of Emergency must be attached to the above-mentioned request. In accordance with Indonesian Law 242007, such declaration will be preceded by a quick and appropriate study
on location, damage, losses, and resources; rescue and evacuation of disaster-affected community; fulfillment of basic necessities; protection for vulnerable groups; and immediate recovery of essential facilities and
infrastructure.
The Government of Indonesia and the World Bank will agree in writing that a disaster, emergency andor catastrophic event requiring support for such activities has occurred and that the proceeds of the loan under
Part 4 will be used for such disaster
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. The Government will mobilize immediately to identify, sign, and prioritize critical zones and the corresponding
emergency and recovery activities to be financed. The PMU will request the aid of the Police or available contractors to set out signs for the works in accordance with the approved emergency action plans. Emergency
works identification signs are only to be displayed while the emergency element of the works is being carried out and must be replaced with standard road works identification signs thereafter. The police will notify
appropriate fire departments, the army, and health sector dependencies so that they can initiate immediate response, prevention, and rescue activities.
The PMU will identify the details of the works and other activities to be financed by the contingency component under part 4 of the project. These works and activities must be submitted to the World Bank for
no-objection, as an emergency response and recovery plan. This emergency response and recovery plan will include the i type of activity to be financed, ii the estimated costs, iii procurement methods, iv procurement
review types, and iv implementation planschedule.
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WINRIP Loan Agreement – December 14th, 2011, Schedule 3, Section I, B.4 and Section IV, B.1b.
14 - 8 The approval of this plan by the Bank will correspond to a global no-objection, and all contracts issued under
the plan for emergency response and recovery will be submitted with an ex-post review of procurement procedures. If additional activities need to be added, the emergency response and recovery plan need to be
revised and resubmitted for no-objection.
Regarding the thresholds for procurement methods and in accordance with the procedures described in OP BP 8.00, some flexibility will be accepted in the procurement for works, goods, supplies and equipment and
consultancy services, for which the method of Direct Contracting is provided, regardless of the contract amount.
As indicated, since the reallocation of funds for emergency purposes is envisaged in the original project and the respective legal agreement, the PMU may request the World Bank the reallocation of funds from other project
components to cover the costs of emergency and early recovery works and activities without restructuring the whole project.
Although additional funding can be justified by the emergency and the impact of the disaster, it is important to note that it is by no means guaranteed, and thus, the World Bank will carefully consider the benefits and costs
of such reallocation.
As a matter of fact, in the absence of additional funding, the reallocation of funds will be the detriment of other components, a situation which could jeopardize the attainment of the PDO. In such case, project restructuring
will become necessary.
14.6.1 Roles and responsibilities
Role Responsibilities
Central Government Declaring the disaster emergency status
Steering Committee The Steering Committee is responsible for identifying the risks generated by
the disaster, the dependencies of the risk within the project, its context and consequences. The MOF manages the State Contingency Budget and plays a
key role in determining allocations of funding to disaster affected areas.
Central Government Working Group Directorate of Planning,
Directorate of Technical Affairs, Directorate of Implementation,
Directorate of Transportation The Central Government Working Group assists in identifying and
determining the context, consequence, impact, timing, and priority of the risk. They determine which risks requires mitigation and contingency plans.
Project Management Unit PMU
Determine the potential impact of the disaster affecting roads and bridges and advise the Central Government Working Group;
During the life of the project, the PMU continually monitors the projects for potential risks. The PM is in charge of requesting re-
categorization of funds from the World Bank, a request that is accompanied by a detailed plan;
Coordinate and management of the implementation of Component 4;
Open and Operate the Special Account under Component 4; Withdraw money to the Special Account;
Submit to the WB a list with the proposed activities to be financed
under from Component 4; Submit consolidated quarterly and annual financial management
reports for Component 4; Cooperate with the external auditors, ensuring that all financial
accounts, records and reports, and other relevant documents including all internal control reports are available for review;
Select, hire and manage consultants based on the related technical assistance plan.
14 - 9 The World Bank
Provide assistance in the identification of activities to be financed under Component 4;
Review the emergency response plans and provide, if such plan is comprehensive and satisfactory, the required non-objections for the
reallocation of funds to approved activities.
14.7 NECESSARY SUPPLEMENTS TO THE ENVIRONMENTAL AND SOCIAL SAFEGUARDS
