Draw Downs and Future Costs Disbursement Management Information System World Bank and GOI Compliance

Western I ndonesia National Roads I mprovement Project 5 - 3 a. File Storage Server, used to stored all files of report and other document. Please check the URL address http:storage.winrip-ibrd.com . b. Document Management System DMS, used to record all information of letter and document files. The URL address of the DMS application will be at http:dms.winrip-ibrd.com . The DMS have 2 main modules below:

1. Letter Database System, used to record all information of incoming and

outgoing letter.

2. Document Library System, used to record all information of document and

report files. Western I ndonesia National Roads I mprovement Project 6 - 1 6 PROJECT PERFORMANCE

6.1 World Bank and GOI Compliance

6.1.1 World Bank Missions

During the month, there was no implementation review mission nor site visit. The regular monthly meeting to review the implementation progress and monitoring of key activities on the Agreed Key Action Plans was held on July 13, 2016.

6.1.2 Agreed Key Actions and Mission Plans during Recent World Bank Mission

A list of the key actions monitored during the period are listed below. No. Action By Whom Target dates 1. Send the BER of package 16 PMU and CTC • August 12, 2016 2. Inform the Bank about the decision taken for Package 10 PMU and CTC • As soon as possible 3. Inform the Bank about the steps DGH has takenwill take in the case of the misrepresentation of facts in the bidding of Package 8 in response to the letter WINRIP265 of December 9, 2015. If DGH is not taking any steps, this needs to be reported too. PMUCTC • As soon as possible 4. Send to the Bank the draft RfP and the budget for the slope stabilization, design, and management PMU and CTC • August 12, 2016 5. Send to the Bank the shortlist for the slope stabilization, design, and management PMU and CTC • August 19, 2016 6. Send the NOL to the contract modification 1 of the DSC contract Bank • August 12, 2016 7. Send the NOL for the replacement of the DSC team leader Bank • August 10, 2016 8. Send request to the Bank for the replacement of DSC staff for packages 14, 20 and 21 PMU and CTC • August 12, 2016 9. Send to the Bank the 2 DSC contract modification for price escalation and other changes staff under the DSC contract PMU and CTC • September 2016 10. Send to the Bank the revised version of the procurement plan PMU • August 12, 2016 11. Send the environmental management and monitoring plans RKPPL for packages 7, 8 and 15 to the Bank PMU and CTC • September 5, 2016 12. Send the environmental management and monitoring plans RKPPL for packages 14, 20 and 21 to the Bank • October 5, 2016 13. Cary out HIVAIDS workshops PMUCTC DSC • Package 7 Sept. 22, 2016 • Package 8 on Sept. 20, 2016 • Package 12 on Sept. 23, 2016 14. Send a letter to the local Environmental Agencies, with copy to the Bank, to urge them to follow-up on inadequate quarry management and reporting by third party quarry owners PMU and CTC • August 31, 2016 15. Collect the environmental permits for all quarries both owned by third parties and contractors, including evidence of compliance of the owner with the environmental license PMU and CTC • September 5, 2016 16. Send to the Bank an update of the environmental monitoring table in annex 4, including an update for the information on the quarries PMU and CTC • October 5, 2016 17. Update the project website with the implementation reports of RKPPL and RKLRPL, UKLUPL or SPPLH for all packages PMU and CTC • September 5, 2016 18. Send to the Bank confirmation letter on status of the affected PMU and CTC • August 16, 2016 Western I ndonesia National Roads I mprovement Project 6 - 2 person 1 due to the bridge development and status of additional LARAP for package 2 19. Send to the Bank final LARAP document of package 5 signed by the relevant Government authority PMU and CTC • August 16, 2016 20. Send to the Bank the right of use permission letter for the Forestry Department for the existing road of package 5 PMU and CTC • End of August 2016 21. Carry out remedial actions for the LARAP implementation of package 5 PMU • As soon as the DIPA revision is done 22. Send to the Bank the monitoring report of LARAP implementation of package 5 PMU • After completion of remedial actions 23. Submit LARAP monitoring reports for packages 11, 15, 16 and 19 to the Bank PMU • End of August 24. Submit LARAP monitoring report for package 7 • Beginning of September 2016 25. Submit LARAP monitoring reports for package 10, 12, and 14 • Mid-September 2016 26. Submit LARAP monitoring report for package 8 • Mid-October 2016 27. Submit LARAP monitoring report for package 13 for 590 APs PMU • End of August 28. Submit LARAP monitoring report for package 21 formally 515 APs PMU • August 16, 2016 29. Submit LARAP monitoring report for package 20 • PMU and CTC • End of August 2016 30. Completely follow up on the FY2015 audit findings and report to the Bank • • December 31, 2016 31. Submit the quarterly IFR for April to June 2016 to the Bank • PMU • August 15, 2016 32. Provide additional follow-up response to the quality improvement support inspection reports TFAC for packages 1, 6 and 19 • PMUDSC • August 12, 2016 33. Send the revised TFAC response for package 3 informally to the Bank • PMUDSC • August 11, 2016 34. Send the TFAC response formally to the Bank for packages 1, 2, 3, 4, 6, 19 and 11 • PMUDSC • September 2, 2016 35. Put the Mid-term review report on WINRIP website • PMUCTC • August 20, 2016 36. Submit to the Bank the 2015IRMS traffic data for the 19 road packages • PMUCTC • September 15, 2016 37. Regularly submit the quarterly progress reports to the Bank • PMU • Noted for each calendar quarter 38. Disclose updated procurement plan after Bank approval in the Winrip website linked to MPW Website • PMU • After Bank approval 39. Update the newsletter quarterly, including the list of contracts, implementation progress, project related workshops and number, typology and status of complaints • PMU • Every quarter 40. Send quarterly newsletter to the civil society forum in each project province in hard copy or through an electronic mailing system • PMU • Every quarter Western I ndonesia National Roads I mprovement Project 6 - 3

6.1.3 Performance Indicators

Key Performance Indicators are developed and agreed between the World Bank and GOI, and will be monitored over the whole project period the changes in variables will be calculated annually. The set indicators are describe in the project Appraisal Document PAD and the Loan Agreement between the GOI and the World Bank. The overall progress towards achieving the PDO of increasing the effective use of selected sections of national roads along the Western Sumatra Corridor by reducing road user costs is considered moderately satisfactory. Progress in implementation has picked up, and there has been an advance with respect to several project indicators. In addition, a project restructuring is being processed which should bring the project largely back on track. The PMU provided an update on the achievement of the indicator targets. There has been relatively good progress on three of the five intermediate indicators. For one of the remaining intermediate indicators on bridge improvement, progress is expected within the next semester. The last intermediate indicator related to institutional strengthening will be cancelled in the framework of project restructuring. For the PDO indicator on AADT, CTC carried out static traffic counts in March 2015 and confirmed that the original indicator targets are adequate. The mission refined a few indicators definitionsbaselines and updated some indicator targets to take into account the project implementation delays. These changes will be reflected in the upcoming project restructuring. From the baseline 2010 AADT and estimated AADT for the year 20142015, the extrapolated AADT for the year 2013 resulted to 11,254 vehicles per day or 8.8 above the targeted 10,347 vehicles per day in 2013. Shown in Table 6.1 is the comparison between target and actual estimated AADT. Table 6.1 Year Targeted AADT Estimated Baseline 2010 7,837 FY1 2013 target 10,347 FY1 2013 actual 11,254 FY2 2014 target 11,351 FY2 2014 actual 12,696 FY3 2015 target 12,453 FY4 2016 target 13,304 FY5 2017 end target 14,214 Appendix I shows the updated WINRIP Performance Indicators. Western I ndonesia National Roads I mprovement Project 6 - 4

6.2 Implementation Support Components

6.2.1 Core Team Consultant CTC

The CTC is responsible to provide support to the PMU and DGH in the management of the Project, based in Jakarta. The CTC tasks include financial and progress monitoring and reporting, information management and dissemination, quality assurance and performance review for the Design and Supervision Consultants DSC, implementation and monitoring of the anti-corruption action plan, support for project monitoring and evaluation, and support for implementation of a training program to support project management and implementation. The CTC contract No. 06-20CTCTALN80431112 was signed on 5 November 2012 by both DGH and a Joint Venture of PT. Perentjana Djaja, Yongma Engineering Co.Ltd., and PT. Epadascon Permata Engineering Consultant. The main CTC activities during July 2016 are as follows: • Monitoring the Implementation of TPM for Packages 17. • Preparation of Monthly, Bid EvaluationProcurement, Quarterly and Semestral Progress Reports. • Monitoring the implementations of the ESAMP, anti-corruption action plans, complains from project site, progress of LARAP, procurement activities and financial progress. • Prepared and issued various letters to PMU and DSC. • Submitted various Reports to PMU concerning environmental and the status of LARAP implementations. • Monitored the actual construction progresses of the on-going contract packages and advised PMU of the current situations of the sub-projects. • Review technical justification variation order Package 5. • Assisted in the preparation of REOI and TOR for the procurement of consultancy service for Technical Assistance for Development of Slope Stabilization Design and Management. • Joint Site Visit CTC PMU to Packages 1, 13 and 17. • IFR Training in Padang for Packages 14, 20 and 21.

6.2.2 Design and Supervision Consultant DSC

The Design and Supervision Consultant DSC will be responsible for design of WP 2 and WP 3 civil works and supervision of all civil works. They will have the role of Engineer 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 Western I ndonesia National Roads I mprovement Project 6 - 5 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 Sumatera. DSC contract was negotiated in Balai Besar Pelaksanaan Jalan Nasional II Balai-II of DGH. The negotiation result and draft contract have been sent to WB on 25 March 2013 for review and approval. The Bank issued no objection letter on the negotiation results and draft contract with letter dated 19 April 2013.

6.2.3 Study on Development of Slope Stabilization Design and Management

This component consists of technical assistance for analytical work of an alternative design for road segment that pass through critical environmental assets and vulnerable areas especially on slope protection design and management.

6.3 TRAINING TO SUPPORT PROJECT IMPLEMENTATION

The work during this reporting month is actually inseparable continuation of what were prepared and done during previous month June 2016 summarized below:  Continuing to update the PMM related to the new organization structure of the Ministry of Public Works and Housing as well as the DGH new regulation, NCB procurement , and the experiences of implementing the project up to now as required, to have a Final Draft of PMM Revision 2.  Continuing to ask for confirmation of the mobilization of contractors and consultants staff of the respective packages for scheduling the implementation of the related training programs.  Making preparation of the implementation of training programs for the rest packages., as being scheduled.  Implementing the 5 th IFR Training for packages 14, 20, and 21 in the 3 rd week of July in Padang. The work during this reporting month was then focused on the following activities:

6.3.1 Continuing to update the PMM for Revision 2, Confirmation of 8 packages progress,

and Preparation of next trainings implementation.  Updating the PMM was continued for Revision 2. All chapters of the PMM, except chapter II, have been updated as required related to the new organization structure of the Ministry of Public Works and Housing as well as the DGH new regulation. Also the new circular of the DGH No.: 02SEDb2016 that replacing previous circular No. 18SEDb2012 concerning the modification of contract, was already included in updated capter 7. While Chapter II had still not been updated. It should wait for the DGH Decree of the Establishment of the new PMU. Organization. Western I ndonesia National Roads I mprovement Project 6 - 6  Asking for confirmation of the mobilization of contractors and consultants in every package resulted in that, based of Status of Civil Works of May 2016, still only 3 packages of our training target groups that possibly could be fully addressed by the training, as follows:: Package No. Package Name Contract Signed COW 07 I ndrapura - Tapan 26 Nov. 2015 10 Dec. 2015 08 Bts.Kta.Pariaman - Manggopoh 28 Jan.. 2016 23 Mar, 2016 12 Kambang - Indrapura 28 Jan. 2016 23 May 2016 14 Painan - Kambang - - 20 Lubuk Alung - Sicincin - - 21 Lubuk Alung - Kuraitaji - -  As the month of June would be mostly in parallel with the month of Ramadhan fasting month, there would not any training delivery hold during this month. The Implementation of the training would be in July after Idul Fitri, probibly in the last week.  The 4 th PMM Application Training Delivery had actually still to wait the decision of the PMU. It had then been postponed again until the PMM would be completely revised and legalized as Revision 2. However, then the CTC suggested the PMU, that while waiting for legalized Revision 2, for the time being we implement the socialization of PMM Draft Revision 2, or otherwise there would be eight packages commencing the project before the most contents of the PMM being introduced to them.  Then the OIC of PMU agreed this temporary measure, and scheduled this 4 th PMM application training of PMM Final Draft of Revision-2 to be carried out in second week of August 2016 in Padang. Also, the target groups should be combined with the target groups of the 5 th such training which initially scheduled in March this year.. The combined of those trainings was then postponed to the end of August 2016,.  Considering the PMM schedule, and that it would be no training delivery in June, the implementation of 5 th IFR Training which initially scheduled for January 2016 and was postponed to June 2016, then was moved back to last week of July 2016. The 8 th RKPPL training, initially scheduled in January 2016 and was postponed to June 2016, then would be delivered in September 2016. Both trainings would be held in Padang, since all prospective participants would be from West Sumatera province; i.e: package 14 Painan Kambang, package 20 Lubuk Alung Sicincin, package 21 Lubuk AluTapang Kuraitaji.  Continuing the preparationrevision required for implementing the training programs above.

6.3.2 Training Implem ent at ion

The work was then focused on implementing the 5 th IFR Training and continuing the preparationrevision required for delivery the next other two trainings..