CTC Contract CTC Consultants .1

Monthly Progress Report April 2013 Western I ndonesia National Roads I mprovement Project 13 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 Sumatra. The activities of DSC recruitment by the Procurement Committee Pokja in Balai Besar Pelaksanaan Jalan Nasional II Balai-II of DGH during March and April 2013 are: • Official opening of Financial Proposal by the Pokja held on 5 March 2013. • Final Evaluation Report Technical and Financial was submitted on 13 March 2013. • Negotiation Results and draft Contract were submitted to the Bank on 25 March 2013. • The Bank issued no objection letter on the negotiation results and draft contract with letter dated 19 April 2013. Until the end of April 2013, the DSC contract signing was still in process. Monthly Progress Report April 2013 Western I ndonesia National Roads I mprovement Project 14 4 CIVIL WORKS

4.1 Detailed Design Preparation

Final Engineering Designs, Engineer’s Estimates and bidding documents have been completed for all projects proposed for WP-1. WP-2 nine subprojects and WP-3 eight subprojects will be designed by DSC and the construction supervision of all the works programs will be performed by the DSC. During the CTC mobilization, the DSC has not been established yet. In parallel with the instruction to speed up the process, detailed engineering design DED of some subprojects of WP-2 and WP-3 were prepared and completed by respective P2JN. The CTC has been instructed by DGH to review the DED of seven packages completed by the P2JNs package 5, 6, 11, 13, 15, 17 and 19. These conditions imply to the need of changing the CTC scope of works which will be included in CTC contract amendment. It is held the 1 st Technical Review Presentation in BINA MARGA for Package No.5 Sp. Rampa – Poriaha and Package No.15 Sibolga – Bts. Tapsel on 4 April 2013. In order to identify the issues of technical review for geometric plan and existing site conditions when to present the Technical review, It will have been planned the Joint survey with staff in P2JN and BINTEK and BINTEK advisor. The Senior Highway Engineer have implemented the technical parts in the Project Management Manual for WINRIP project that the target submission day is in next month. The Senior Highway Engineer have still reviewed the guidelines and design manuals in Indonesia to identify the improvements of engineering judgment. It also have been discussed the technical details with BINTEK and the DED Consultants. Package No.5 Simpang Rampa – Poriaha, No.11 Bantal – Mukomuko, No.13 Simpang Rukis – Tanjung Kemuning and Package No.15 Sibolga – Batas Tapsel are under reviewing. The Senior Road Safety Auditor has joined the CTC team on 24 April 2013 in advance to prepare his role and responsibility. Progress of Technical Design Reviewing up to the end of April 2013 is included as Appendix B.

4.2 Procurements

Procurement shall be conducted under the Bank’s Procurement Procedures as mentioned in the Loan Agreement. The International Competitive Bidding ICB will apply to the packages with the construction estimated cost more than US 10 Million to comply with the Bank’s threshold for ICB. According to the GOI regulation, a prequalification shall be applied for the packages with the construction estimated cost more than IDR 10 Billion. Therefore, all subprojects for WP-1 have been started with prequalification since 30 December 2011 for ICB multiple contract. This was an advanced procurement action agreed by both DGH and the World Bank prior to the CTC establishment. The deadline of Qualification Document submission by the Applicants was on 28 February 2012. There are twenty nine 29 Applicants who submitted and applied their qualification documents for various packages which are summarized as follow. Monthly Progress Report April 2013 Western I ndonesia National Roads I mprovement Project 15 • Package No. 1 Krui – Biha : 13 Applicants applied. • Package No. 2 Pd. Sawah – Sp. Empat : 13 Applicants applied. • Package No. 3 Manggopoh – Pd. Sawah : 18 Applicants applied. • Package No. 4 Ipuh – Bantal : 12 Applicants applied. All three 3 Procurement Teams or Pokja evaluated all qualification documents submitted by those Applicants. Submission of the Application Evaluation Report AER to the Bank was on 9 May 2012 for two packages Package No.1 and No.4 and on 20 June 2012 for other two packages Package No.2 and No.3. The Bank still reviews the AERs and requested the Pokja to submit supporting documents. The latest request from the Bank was sent to DGH on 15 March 2013 for board of director and board of commissioner information of the Government’s Entity participated in the prequalification. Finally, the Bank approved the AERs with issuance letter Ref. No. WINRIP120 dated 22 April 2013. The results of prequalification are summarized as the table below. No Singles JO Legal Name Participate and Result of the PQ Package No.1 Package No.2 Package No.3 Package No.4 1 PT. AdhiKarya Persero, Tbk. Passed NA NA Passed 2 PT. AdhiKarya - PT. AngkasapuriKonsursindo, JO. NA Passed Passed NA 3 PT. BangunCiptaKonstruksi - PT. AmartaKarya Persero, JO. Passed NA NA NA 4 PT. BrantasAbipraya Persero Passed NA Passed NA 5 PT. Citra GadingAsritama NA NA NA Passed 6 PT. ConblocInfratecno Passed NA Passed NA 7 PT. Duta Graha Indah, Tbk. Passed Passed Passed NA 8 PT. HutamaKarya Persero NA Passed Passed NA 9 PT. HutamaKarya Persero - PT. SuciKarya Bad inusa, JO. Passed NA NA Passed 10 PT. Jaya Konstruksi MP, Tbk. Passed Passed Passed Failed 11 Kuk Dong Eng. Corp. - PT. Duta Graha Indah, Tbk., JO. NA NA NA Passed 12 PT. Multi Structure Passed Passed Passed Passed 13 PT. NindyaKarya Persero NA Failed Passed Failed 14 PT. NindyaKarya Persero - PT. RindangTigasatuPratama, JO. Passed NA NA NA 15 Pan Asia Corp. - PT. AnugerahKarya Agra Sentosa, JO. Passed NA Passed Failed 16 PT. PP Persero, Tbk. NA Passed Passed NA 17 PT. PP Persero Tbk - PT. Tri Citra Perdana JO. Passed NA NA Passed 18 PT. WaskitaKarya Persero NA Passed Passed NA 19 PT. WaskitaKarya Persero - PT. AngkasaPuriKonsursindo, JO. Passed NA NA NA 20 PT. WaskitaKarya Persero - PT. DayaMuliaTurangga, JO. NA NA NA Passed 21 PT. WijayaKarya – PT. LubukMinturunKaryaPersada, JO. NA Passed Passed Passed 22 PT. Yasa Patria Perkasa NA NA Passed NA 23 PT. AngkasaTeknik Raya NA Failed Failed NA 24 PT. BangunCipta - Barettamuda KSO. NA NA Failed NA 25 PT. BumiRejo Failed NA NA Failed 26 PT. CiptaKarya Prima Mandiri NA Failed Failed NA 27 PT. SumberBatu NA Failed NA NA 28 Synohidro Co. Ltd. NA Failed Failed NA 29 PT. TelagaMegabuana - PT. Mawatindo Road Construction, JO NA NA Failed NA Number Of Applicants submitted the document 13 13 18 12 Number Of Qualified Applicant 12 8 13 8 Number Of Applicant failed to fulfill the qualification requirement 1 5 5 4 Note : NA = Not Applied for Prequalification . DGH has also completed the draft of consolidated multiple contract ICB Standard Bidding Document for four 4 packages under AWP-1. The draft had been submitted to the Bank on 8 March 2012. The Bank’s comments had been issued on 12 March 2012. The draft of consolidated SBD was revised by DGH accommodating the Bank’s