Current Implementation Situation Civil Works

Western I ndonesia National Roads I mprovement Project 1 - 3 Revised : 1 June 2016 Length Cti on Km Peri od J N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Core Team Consultant CTC 40 mth IMPLEMENTATION Time extension for sevices Design Supervision Cslt DSC 42 mth IMPLEMENTATION Proposed time extension for sevices TA for De v.of Slope Stabilization, De s ign Manage m e nt PROCUREMENT 1 Krui - Biha 25,00 21 mth 8 Jan14 2 Padang Sawah - Sp.Empat 40,90 24 mth 6 Jan14 3 Manggopoh - Padang Sawah 32,00 24 mth 6 Jan14 4 Ipuh - Bantal 42,40 24 mth 10 Jan14 5 SIMPANG RAMPA - PORIAHA 11,10 18 mth 18 Jun15 8 Dec16 11 BANTAL - MUKOMUKO 50,10 24 mth 23 Feb15 11 Feb17 13 SP RUKIS - TJ KEMUNING 56,30 24 mth 11 Feb17 17 Sp.Gn.KEMALA - Pg. TAMPAK 36,80 24 mth 04 Sep15 23 Agt17 6 PS. PEDATI - KERKAP 25,00 15 mth 11 Mar15 31 Aug16 19 LAIS - BINTUNAN 11,60 10 mth 11 Mar15 CONSTRUCTION 300+125 days 08 May16 15 SIBOLGA - BATAS TAPSEL 36,00 27 mth 20 Nov15 06 Feb18 7 INDRAPURA - TAPAN 19,50 21 mth 10 Dec15 30 Agt17 8 BTS.Kt PARIAMAN-MANGGOPOH 46,80 24 mth PROC 23 Mar16 12 Mar18 10 SIMPANG EMPAT - SP.AIR BALAM 61,70 24 mth 12 KAMBANG - INDRAPURA 55,20 24 mth 23 May16 12 May18 14 PAINAN KAMBANG 31,50 21 mth PROC 16 SEBLAT IPUH 34,50 21 mth 20 LUBUK ALUNG SICINCIN 14,60 18 mth 21 LUBUK ALUNG KURAITAJI 16,80 18 mth Original target : 715,60 km ENVIRONMENT SOCIAL SAFEGUARD Revised target : 640,00 km Prequalification Detail Eng Design LARAP Study Road Safety Owners Estimate Appraisal Public Consultation Procurement Sign Contr Bid Document LARAP Implementation Preparation for Commencement of Work Standard Biding Document Review DED RS PQ Review DED RS PQ PQ Review DED RS Review DED RS PROC CONSTRUCTION 720 days CONSTRUCTION 720 days ICB ICB ICB ICB ICB CONSTRUCTION 640 + 93 days 19-Apr-16 PROC 20-Mar-16 08-Apr-16 CONSTRUCTION 540 days CONSTRUCTION 730 + 105 days CONSTRUCTION 730 + 75 days CONSTRUCTION 730 + 90 days Pack PACKAGE NAME 2012 2013 2014 2015 2016 2017 2018 ICB RSA REVISED DED OE BD Review DED RS PQ RS Proc COW SBD DED OE BD DED NCB NCB DED 30-Des-17 18-Des-16 6-Nov-12 19-Jun-13 PROC PROC DED Rev-DED RS ICB ICB NCB NCB DED PROC CONSTRUCTION 720 days ICB ICB NCB NCB NCB Review DED RS ICB ICB CONSTRUCTION CONSTRUCTION Rejected Bids CONSTRUCTION 810 days CONSTRUCTION PROC PROC DED CONSTRUCTION 630 days Review DED RS SBD OE + BD RSA REVISED DED OE BD DED RSA REVISED DED OE BD SBD OE + BD DED RSA REVISED DED OE BD DED IMPLEMENTATION CONSTRUCTION CONSTRUCTION SBD OE + BD Rev-DED RS Rev-DED RS Rev-DED RS PQ PROC CONSTRUCTION 450+90 days CONSTRUCTION Actual Implementation Timeline of WINRIP Western I ndonesia National Roads I mprovement Project 1 - 4

1.2 Disbursement

Loan Allocation and Percent Disbursement To Date REF 1.25 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 Month C om pl et e Actual Expenditure USD 65.01 mil 26.00 WINRIP ACTUAL PROGRESS UP TO JUNE 2016 AND FORECAST UP TO JUNE 2018 ACTUAL June 2016 Original Forecast Forecast Expenditure Rev USD 44.50 mil 17.80 Forecast June 2016 Deviation = + 8.20 The total disbursement summary from the loan by The World Bank to the end of June 2016 was USD 65,009,653.87 equivalent to approximately 26.00 of the loan funds. The following table summarizes the individual disbursements as calculated by CTC but retaining the total disbursement from Client Connection at the end of June 2016. Appendix A shows the Overall Loan Progress Status. Category Description Loan Restructuring Amount US Disbursement This Period Previous Disbursement Totals Disbursed to End June 2016 in US Disbursed 1 Part 1 Betterment and Capacity Expansion of National Roads. 220,400,000.00 3,581,716.35 55,844,056.69 59,425,773.04 26.96 2 Part 2 Implementation Support 17,000,000.00 5,583,880.83 5,583,880.83 32.85 3 Part 3 Road Sector Institutional Development 4 Part 4 Contingency for Disaster Risk Response Unallocated 12,600,000.00 Original Loan Amount 250,000,000.00 3,581,716.35 61,427,937.52 65,009,653.87 26.00 Breakdown of amount disbursed during the period June 2016 are for Statement of Work Accomplished and release of retention money for the following civil works contract packages : • Package No 01 : MC Nos. 25 USD 512,464.00 • Package No 01 : MC Retention Money USD 372,057.43 • Package No.02 : MC Nos. 28 USD 309,376.94 • Package No.02 : MC Retention Money USD 590,926.62 • Package No.07 : MC Nos. 01 - 06 USD 194,117.96 • Package No.11 : MC Nos. 14 USD 714,231.75 • Package No.17 : MC Nos. 07 - 08 USD 537,810.38 • Package No.19 : MC Nos. 13 USD 350,731.27 The Ending balance for Special Account end of June 2016 USD 702,303.37 Include Follow up on BPK audit findings for FY 2014 USD 11,765.00. Western I ndonesia National Roads I mprovement Project 1 - 5

1.3 World Bank Implementation Review Mission and Site Visit

During the month, there was no implementation review mission nor site visit.

1.4 Procurement of Civil Works Contract Under Category 1 of the Loan Agreement

As of end this reporting month, seventeen 17 out of the nineteen 19 contract packages are already procured. The current status of Contract Packages which are under final procurement stage are as follows :

1. Package No.10 Sp. Empat

Sp. Air Balam AWP-2 This sub-project is under implementation schedule AWP-2. The project roadline is located in the Province of Sumatera Barat having an approximate length of 61.70 kilometers. The Contract Package is procured thru the post qualification and International Competitive Bidding ICB procurement method using the Full e-Procurement System. The revised Bid Evaluation Report BER which was resubmitted to the Bank on February 19, 2016 has been concurred by the World Bank on February 22, 2016 by issuing a No Objection Letter NOL to award the contract to the joint operation of PT. Lancarjaya Mandiri Abadi and PT. Cahaya Tunggal Abadi in the amount of Rp.424,285,260,782.50 with 720 calendar days time completion. Copy of No Objection Letter NOL has been official forwarded to POKJA on May 9, 2016 and upon POKJA s receipt of the documents, the revised Bid Evaluation Report BER was submitted to MPWH for final review, acceptance and confirmation of contract award to the lowest responsive bidder, PT. LancarjayaPT. Cahaya Tunggal Abadi. During the month, the revised Bid Evaluation Report BER and contract award recommendation is still being thoroughly evaluated by the Ministry before rendering decision whether to accept and confirm POKJA s evaluation report.

2. Package No.16 Seblat-Ipuh AWP-3

The sub-project is to be implemented under implementation schedule AWP-3. The Project road length covers 34.50 kilometers and is located in the Province of Bengkulu. The Contract Package is procured thru post qualification criteria and National Competitive Bidding NCB method using the Full e-Procurement System. Bid Evaluation Report BER has been completed by POKJA and submitted to World Bank on January 11, 2016 for review and issuance of No Objection Letter NOL. However, per Bank s letter of January 20, 2016 regarding results of their prior review of the BER have comments on the proposed disqualification of five 5 lower priced bidders. In response with the Bank s comments, POKJA explained in details the reasons to disqualify the five 5 lower priced bidders. The detailed explainations, justifications and resubmission of the Revised Bid Evaluation Report BER were forwarded to the Bank thru letter of March 21, 2016 by the Director of Road Network Development. The Revised Bid Evaluation Report BER and recommendation for award of the contract remain to be the same bidder as previously proposed in the original Bid Evaluation Report BER. Western I ndonesia National Roads I mprovement Project 1 - 6 Due to all submitted bids were not substantially responsive in particular the evaluation by POKJA where it did not conform with Chapter III IKP E.29 14g of the Instruction To Bidders ITB of the Bid Documents, the MPWH issued letter on April 18, 2016 ref, no. KU 03.01-Mn321 declaring a failure of bidding. During the month, the Director of Road Network Development, the World Bank and the Procurement Committee POKJA held a special meeting June 21, 2016 to address the issues in order to avoid further delay on the implementation of the Works. It was agreed that POKJA will conduct further re-evaluation of the bids. The bid validity expired on June 16, 2016, however, POKJA requested extension of the validity for 1.5 months or until July 31, 2016.

3. Package No.14 Painan - Kambang AWP-3

The sub-project is to be implemented under implementation schedule AWP-3. The Project road length covers 31.50 kilometers and is located in the Province of West Sumatera. The Contract Package is procured thru post qualification criteria and National Competitive Bidding NCB using the Full e-Procurement System. As mentioned in last month progress report, the Ministry of PWH issued a letter on May 3, 2016 concurring the Bid Evaluation Report BER and recommendation for award of contract to the evaluated lowest responsive bidder, PT. Yasa Patria Perkasa Conbloc, JO, for a corrected contract amount of Rp.214,327,429,680. During this reporting month of June 2016, Contract Agreement has been executed on June 1, 2016 between Pejabat Pembuat Komitmen 14 PPK on behalf of the Government of Indonesia GOI, the Employeer and PT. Yasa Patria Conbloc, the Contractor, for a contract amount of Rp. 214,327,429,680 and contract time of 630 calendar days and 730 calendar days defects liability period. Copy of the signed Contract Agreement was submitted on June 15, 2016 to World Bank requesting no objection on the agreement and issuance of Form 384 for disbursement. The Bank pose no objection to the agrrement and issued on June 21, 2016 the Form 384. It is expected that advance payment to the Contractor will be released anytime this coming month of July 2016 as well as the issuance of Notice To Proceed NTP to commence the works.

4. Package No.20 Lubuk Alung - Sicincin AWP-3

The sub-project is to be implemented under implementation schedule AWP-3. The Project road length covers 14.60 kilometers and is located in the Province of West Sumatera. The Contract Package is procured thru post qualification criteria and National Competitive Bidding NCB using the Full e-Procurement System. As mentioned in last month progress report, the Ministry of PWH issued letter on May 3, 2016, accepting the Bid Evaluation Report BER and recommendation for award of contract to the evaluated lowest responsive bidder, PT. Nindya Karya, for a corrected contract amount of Rp.113,818,300,000.