Current Implementation Situation Civil Works

Western I ndonesia National Roads I mprovement Project 1-3

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 Co m pl et e Actual Expenditure USD 12.79 mil 5.12 WINRIP ACTUAL PROGRESS UP TO FEBRUARY 2015 AND FORECAST UP TO DECEMBER 2017 ACTUAL February 2015 Forecast February 2015 Forecast Expenditure USD 61.63 mil 24.65 Deviation = 19.53 No disbursement from the loan to the end of February 2015, and the total disbursements was USD 12,794,201.36 equivalent to approximately 5.12 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 February 2015. Appendix A shows the Overall Loan Progress Status. Category Description Loan Restructuring Amount US Disbursement This Period Previous Disbursement Totals Disbursed to End February in US Disbursed 1 Part 1 Betterment and Capacity Expansion of National Roads. 220,400,000.00 1,261,155.46 8,967,165.07 10,228,320.53 4.64 2 Part 2 Implementation Support 16,000,000.00 2,565,880.83 2,565,880.83 16.04 3 Part 3 Road Sector Institutional Development 1,000,000.00 4 Part 4 Contingency for Disaster Risk Response Unallocate d 12,600,000.00 Original Loan Amount 250,000,000.00 1,261,155.46 11,533,045.90 12,794,201.36 5.12 The Ending balance for Special Account end of January 2015 USD 310,946.34. Western I ndonesia National Roads I mprovement Project 1-4

1.3 World Bank Implementation Review Mission and Site Visit

During the period February 2015, the TFAC Audit Team conducted site audit on Packages No.2 and No.3 from February 9 to 27, 2015. Likewise, the Country Management Unit of World Bank Jakarta Office visited the project sites in the Sumatera Barat Province on February 27, 2015 and conducted social and environmental safeguard review.

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

The current status of Contract Packages which are under procurement stage are as follows :

1. Package 17 Sp. Gunung Kemala Pugung Tampak AWP-3.

This sub-project is under implementation schedule AWP-3. The project roadline is located in the Province of Lampung having an approximate length of 36.80 kilometers. The Contract Package is procured thru the Prequalification and International Competitive Bidding ICB procurement method. As mentioned in previous Monthly Progress Report, World Bank already issued the disbursement form Form 384. Notice To Proceed to commence the Works is still to be issued subject to completion of the acquisition of Right of Ways ROW.

2. Package 11 Bantal Mukomuko 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 50.10 kilometers. The Contract Package is procured thru the Prequalification and International Competitive Bidding ICB procurement method. As previously mentioned in last month progress report, World Bank already issued the disbursement form Form 384. Notice To Proceed to commence the Works is still to be issued subject to completion of the acquisition of Right of Ways ROW.

3. Package 13 Sp. Rukis Tj. Kemuning 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 56.30 kilometers. The Contract Package is procured thru the Prequalification and International Competitive Bidding ICB procurement method. As previously metioned in the previous monthly report, World Bank already issued the disbursement form Form 384. Notice To Proceed to commence the Works is still to be issued subject to completion of the acquisition of Right of Ways ROW.

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. Western I ndonesia National Roads I mprovement Project 1-5 As mentioned in previous Monthly Progress Report, the World Bank issued No Objection Letter NOL on the resubmitted Revised Bid Evaluation Report BER and concurred the award of contract to the lowest bidder PT. Nusa Konstruksi Enjiniring, Tbk. During the period February 2015, the 1 st extension of bid validity period from the original expiry date on January 20, 2015 expired on February 18, 2015 with no execution of contract award to the lowest bidder, PT. Nusa Konstruksi Enjiniring, Tbk. Considering the length of time to process of signing the award of contract which still requires more time, a 2 nd extension of another 28 days was required with bid validity to expire on March 18, 2015 and in accordance with the Bidding Documents, the Bid Security was also extended to remain valid until 28 days beyond the expiry date of the 2 nd bid validity extension. Before the expiry date on February 18, 2015 of the 1 st bid validity extension and prior to issuance of instruction to all bidders to extend for another 28 days period of their bid validity, DGH have requested World Bank to issue No Objection Letter NOL for the 2 nd extension. On February 16, 2015, the World Bank interpose no objection with the issuance of NOL to extend the bid validity period for another 28 days. As of this waiting, the Ministry of Public Works MPW still to approve the Bid Evaluation Report BER as the propose amount for contract award is more than Rp. 100,000,000,000.

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. The Contract Package is procured thru the National Competitive Bidding NCB using the method of e-procurement system of procuring the works. As mentioned in previous monthly progress report, 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.