Current Implementation Situation Civil Works

Western Indonesia National Roads Improvement Project 3

1.3 World Bank Implementation Review Mission and Site Visit

World Bank Implementation Review Mission started with a kick-off meeting on January 15, 2015 with follow-up meeting on January 19, 2015. A wrap-up meeting was held on January 22, 2015 to complete the mid-term review of the progress of the Project implementation. No site visit inspection was scheduled during the month, however, the mission scheduled to visit the site in February 2015 the on-going works of Contract Package No.1 and Contract Package No.2 in Lampung and Sumatera Barat, respectively, Packages 6, 11, 19 and possibly Package 19 will be visited too, to assess the progress of the resettlement plan implementation. In addition to the next month ’s schedule isits, the TFAC Audit Tea ill isit the site duri g the middle of February 2015.

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, the Award of Contract was executed between the Government of Indonesia and the winning responsive bidder, PT. Jaya Konstruksi Manggala Pratama with the signing of Contract Agreement on November 17, 2014 for a contract amount of Rp. 199,551,233,999 and contract period of 720 calendar days. Commencement of Works COW is expected to be on or before June 2015 subject to the completion of LARAP implementation. Copy of the signed Contract Agreement have been already furnished to the World Bank and Form 384 for disbursement was already issued.

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, the Award of Contract was executed between the Government of Indonesia as represented by the Ministry of Public Works and PT. Hutama Karya Persero PT. Daya Mulya Turangga J.O. for a contract amount of Rp.228,899,717,000 and completion period of 720 calendar days with the Works to commence on or before the end of March 2015, the target date to commence work based on the Updated Timeline Implementation Schedule. During this period the signed contract was submitted to World Bank and the Bank issued the disbursement form Form 384.

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. Western Indonesia National Roads Improvement Project 4 The Contract Package is procured thru the Prequalification and International Competitive Bidding ICB procurement method. As previously metioned in the previous monthly report, 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 June 2015, the target date to commence work based on the Updated Timeline Implementation Schedule and subject to completion of LARAP implementation. During this month the signed contract was submitted to World Bank and the Bank issued 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 elo the appro ed O er’s Esti ate 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 O er’s Esti ate. 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. The Bank had discussed the BER with procurement committee and PMU on 12 January 2015 to reach on a conclusion if the current asset can be considered as financial resources to qualify the bidder or not. The Bank has an opinion that current asset can be considered and the BER can be revised and recommended for award based on the discussion. The Bid Evaluation Report BER has been revised considering bidder response on Liquid AssetCurrent Asset of IDR 1,525,835,748,311 and on other financial resources of Working capital credit facility of IDR 100,000,000,000 and Bank Guarantee facility