Work Plan in October 2014

Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 80 7 ISSUES and RECOMMENDATIONS

7.1 Current Situation

The main issues during this month of September 2014 are as follows: a The slow progress of procurement proceedings. b Provisions for additional funds to cover claims for contract escalations and expected variation orders. c The official approval of the Revised Project Management Manual PMM. d The considerable negative slippage behind schedule of two 2 on-going construction sub-projects. e The design revision of four 4 detailed design drawings for the Packages Nos. 7, 8, 10 and 12 which are to be revised in accordance with Nota Dinas No.130NDBL2014 dated September 19, 2014.

7.2 Actions Required

a The main cause of the delay in procurement is attributed to the flow of communication between POKJA, PMU, CTC and the World Bank in finalizing the procurement documents. To minimize or totally eliminate the delays in securing Bank s concurrence and issuance of No Objection Letter NOL, special meeting shall be held regularly among all concerned to discuss each comments and suggestions which are to be incorporated in any documents prior to formally submitting to the Bank. b As the budgets for the price escalation and expected variation orders were not included in the original cost estimates, PMU shall discuss this matter with the higher authorities to request fund allocation to cover the additional cost. c As there are now four 4 on-going civil works contract packages under construction and sooner another four 4 civil works contracts will be awarded, the Revised Project Management Manual PMM shall be formally approved. Although the Revised PMM has been already disseminated to all concerned parties, official approval is needed prior to furnishing copy to the World Bank. d Two 2 of the four 4 on-going construction packages were on an alarming stage due to considerable negative slippages. To be on schedule or reduce the negative slippage to a manageable level, Design Supervision Consultant DSC shall initiate and schedule a high level meeting to be attended by no other than the Contractor s principal and other concerned authorities. Contractors shall be required to submit realistic action plans and catch-up schedule to be implemented, if possible, on a two 2 shifts per day work schedule. e BALAI II Padang have to expedite the design revisions in order that the four 4 Contract Packages can proceed as soon as possible with the disrupted procurement of works. 8 CORRESPONDENCES During the period the CTC received and issued letters. Lists of letters received and issued are shown in Appendix J.