Disbursement WINRIP DOC MPR CTC MPR No.24 2014 12 2014 12 11 00224.

Western I ndonesia National Roads I mprovement Project 4 the bidding process. In the middle of this reporting month December 18, 2014 the Award of Contract was executed between the Government of Indonesia as represented by the Ministry of Public Works and PT. Waskita Karya Persero, Tbk for a contract amount of Rp.292,700,000,000 and completion period of 720 calendar days with the Works to commence on or before the end of February 2015. Copy of the signed contract is still to be submitted to World Bank in order for the Bank to issue the disbursement form Form 384.

4. Packages 5 Simpang Rampa Poriaha AWP-2

This sub-project is under implementation schedule AWP-2. The project roadline is located in the Province of Sumatera Utara having an approximate length of 9.70 kilometers. The Contract Package is procured thru the Prequalification and International Competitive Bidding ICB procurement method. As mentioned in previous Monthly Progress Report of November 2014, the bid opening took place as schedule on September 22, 2014 in Medan. The lowest canvassed bid was submitted by PT. Nusa Konstruksi Enjiniring, Tbk with an amount of Rp. 107,321,260,000 or 26.40 below the approved Owner s Estimate of Rp.145,815,316,000, while the 2 nd lowest bid was quoted by PT. Pembangunan Perumahan Persero in the amount of Rp.108,270,000,000 or 25.75 lower than the approved Owner s Estimate. However, based on the evaluation of the Procurement Committee POKJA, the lowest bidder failed to meet the qualification for financial situation which was found negative due to its financial resources is much lower as compared with the minimum requirement of the bidder to carry on current project plus the financial requirements of Package No.5. Due to failure of the lowest bidder to satisfy the financial requirements, POKJA evaluated the bid of the 2 nd lowest bidder wherein the bidder fulfilled all qualifications and requirement criteria, thus, POKJA recommended the award of contract to PT. Pembangunan Perumahan Persero with a contract amount of Rp. 108,270,000,000 with bid validity to remain valid until January 20, 2015. The Bid Evaluation Report was forwarded to the World Bank to request confirmation and issuance of No Objection Letter NOL on the BER and award of Contract, however, the Bank thru their letter of November 24, 2014 required further clarifications of the financial resources of the 1 st lowest bidder andor justification why the award of contract be awarded to the 2 nd lowest bidder instead to the 1 st lowest bidder. To comply with WB s required clarifications, Head of Balai I sent response letter to DGH- Director of Implementation Affairs Region I clarifying Bank s comment and reason why the award was not given to the 1 st lowest bidder. As of this writing, No Objection Letter NOL is still to be issued by World Bank.

5. Package No. 6 Pasar Pedati Kerkap AWP-2

This sub-project is under implementation schedule AWP-2. The project roadline is located in the Province of Bengkulu having an approximate length of 20.90 kilometer. Western I ndonesia National Roads I mprovement Project 5 The Contract Package is procured thru the National Competitive Bidding NCB using the method of e-procurement system of procuring the works. As originally scheduled, the pre-bid conferencemeeting and site visit pushed thru on December 5, 2014, however, the bid opening was rescheduled from December 18, 2014 to December 29, 2014 in Bengkulu. There were seven 7 applicant bidder who submitted their bids on December 29, 2014 and bids were opened on the same day. Six 6 bidders are sole entity contractors, while the other bidder is in joint venture with another contractor. The applicant bidders who submitted their bids are as follow : • PT. Multi Structure JO PT. Rodate : Rp. 90,287,440,000 • PT. Jaya Konstruksi, MP : Rp. 90,800,000,000 • PT. Yasa Patria Perkasa : Rp. 90,850,000,000 • PT. Hutama Karya Persero : Rp.109,292,800,000 • PT. Bumi Karsa : Rp. 86,912,075,000 • PT. Waskita Karya Persero : Rp. 86,517,470,600 • PT. Istaka Karya Persero : Rp. 90,100,660,000 The lowest canvassed bid is submitted by PT. Waskita Karya Persero with an amount of Rp. 86,517,470,600 which is 6.06 below the approved Owner s Estimate of Rp. 92,097,356,000, while the 2 nd lowest bid is quoted by PT. Bumi Karsa with an amount of Rp. 86,912,075,000 or 5.63 lower than the Owners s Estimate. Bid Evaluation Report is under preparation and finalization by POKJA and expected to be finalized on January 19, 2015.

6. Package No.19 Lais Bintunan AWP-3

This sub-project is under implementation schedule AWP-3. The project roadline is located in the Province of Bengkulu having an approximate length of 10.80 kilometers. The Contract Package is procured thru the National Competitive Bidding NCB using the method of e-procurement system of procuring the works. As originally scheduled pre-bid conferencemeeting and site visit pushed thru on December 5, 2014, however, the bid opening was reschedule from December 18, 2014 to December 29, 2014 in Bengkulu. There were three 3 applicant contractors who submitted their bids on December 29, 2014 and bids were opened on the same day. All the three 3 bidders are sole entity Contractors. The applicant bidders who submitted their bids are as follows : • PT. Maras Bangun Persada : Rp. 32,929,110,000 • PT. Rodatekindo Purajaya : Rp. 33,689,459,000 • PT. Sumber Tratindo Utama : Rp. 31,758,052,000 The lowest canvassed bid is submitted by PT. Sumber Tratindo Utama with an amount of Rp. 31,758,052,000 which is 11.18 below the approved Owner s Estimate of Rp. 35,756,587,000, while the 2 nd lowest bid is submitted by PT. Maras Bangun Persada