Civil Works Implementation WINRIP DOC MPR CTC MPR No.19 2014 07 2014 07 10 00224.

Monthly Progress Report July 2014 Western I ndonesia National Roads I mprovement Project 23 downward trend from -2,00 the previous month. As previously mentioned in the last Monthly Progress Report, the delayed works remain to be still manageable as of this end of the month. Work activities shall be closely supervised and monitored in order that the delayed works could be reduced or attain an ahead of schedule progress in the coming month. Package No. 4 : Ipuh Bantal The current status of this contract package is similar with that of Package No. 1 wherein the negative slippage of -9,07 incurred last month further slipped down to -11,98 as of end of this reporting month. To address the downward trend of delayed works, the head of BBPJN III Palembang called up a meeting last July 17, 2014. The Contractors were claiming that the delays were mainly caused by the insufficient width of Right of Ways to accommodate the designed roadway cross sections, that works could not be executed due to the ROW constraints. CTC s opinion on this matter is that the Contractors claim is not valid reason as this ROW problem should have been anticipated by the Contractors in the conduct of Field Engineering during the early days of the contract period and solutions should have been rendered at that time. In general, the Contractors of the four 4 on-going construction packages are not performing well in the execution of the works. Unless a realistic Catch-up Schedule will be strictly enforced and implemented, the Contractors of the four 4 on-going sub-projects could not deliver the Packages on the target dates of completion. For contract packages under AWP-2 and AWP-3 which have a combined total of 17 Packages, a brief summary of the actual activities and status as of this reporting period are presented in Table 1.1, page 7 of this Report.

4.5 Quality Assurance

The DSC will 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 Draft Final Quality Assurance Manual had been submitted on May 5, 2014 by CTC to PMU for further review and approval. Likewise, a copy of the Draft Final Quality Assurance manual was furnished to the Design Supervision Consultant for provisional reference for quality requirements of the projects. As of this writing, DSC have not submitted any Report to CTC concerning quality assurance, letter from CTC to DSC was issued on July 23, 2014 regarding timely submittal of the Reports.