Current Implementation Situation Civil Works

Western I ndonesia National Roads I mprovement Project 3

1.3 Visit

No World Bank Implementation Review mission and site visit during the month. However the mid- term review mission is scheduled to take place on January 14 and 15, 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 the preceding 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 24 months. Commencement of Works COW is expected to be on or before May 2015. During this period, DGH submitted the signed contract agreement to World Bank and the Bank issued the Form 384 for disbursement purpose.

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 interpose no objection to award of contract and Ministry of Public Works accepted and announced that the lowest responsive bidder PT. Hutama Karya in joint operation with PT. Daya Mulya Turangga as the winner of 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. 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 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.

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 mentioned in last month progress report, World Bank interpose no objection to award of contract and Ministry of Public Works accepted and announced that the lowest responsive bidder PT. Pt. Waskita Karya Persero, Tbk as the winner of 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.