WINRIP DOC MPR CTC MPR No.17 2014 05 2014 05 09 00225.

Monthly Progress Report No. 17

Covering Project Activities During

May 2014

Direktur Jenderal Bina Marga Inspektorat Jenderal, Kementrian PU Direktur Transportasi - Bappenas

Direktur Pengelolaan Kas Negara (PKN), Kementrian Keuangan Direktur Bina Program, DitJen Bina Marga

Direktur Bina Teknik, Dit.Jen Bina Marga Direktur Bina Pelaksanaan Wilayah I, DJBM Biro Perencanaan & KLN, Kementrian PU

Kasubdit Kawasan Strategis dan Andalan, Kementrian Dalam N,egeri

Should you have any comment or additional information that need to be incorporated in the Report, please feel free to get in touch with us.

This Report is reproduced and submitted in twenty (20) copies for distribution to all concerned authorities.

Dear Sir,

,"

In compliance with the Terms of Reference of our Consultanc{Contract, we submit herewith the Monthly Progress Report No.1? covering the month of May 2014.

Subject

Attention: Ir. Agusta Ersada Sinulingga , MT Officer In Charge PMU WINRIP

Submission of May 2014 Monthly Progress Report No.17; WINRIP Loan IBRD No. 8043-10

Directorate General of Highways, MPW JI. Patimura 20 Kebayoran Baru Jakarta Selatan

Indonesia

Jakarta, June 10, 2014 Our Ref.No . :zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA03_02/C T AlO /M -5.2014

DIRECTORATE GENERAL OF HIGHWAYS

DIRECTORATE OF PLANNING

Core Team Consultant for

Western Indonesia National Roads Improvement Project (WINRIP) IBRO Loan No. 8043-10

Table of Contents

1 EXECUTIVE SUMMARY... 1

1.1 Current Implementation Situation ... 1

1.2 Disbursement ... 2

1.3 Visit... 3

1.4 Procurement ... 3

1.5 Consolidated Update of the Progress of the Project... 4

2 PROJECT DESCRIPTION ... 6

2.1 Background... 6

2.2 Project Development... 6

2.3 Project Objective...11

3 CONSULTANCY SERVICES ...12

3.1 CTC Consultants...12

3.1.1 Scope of Services ...12

3.1.2 CTC Manning...13

3.1.3 CTC Contract...15

3.2 DSC Consultants ...16

3.3 Technical Assistance for Capacity Building for Disaster Risks Reduction ...16

4 CIVIL WORKS ...17

4.2 Procurements ...17

4.3 Civil Works Implementation ...18

4.4 Civil Works Progress ...19

4.5 Quality Assurance ...20

4.6 Environmental and Social Considerations...21

4.7 Anti Corruption Issues ...32

4.7.1 Anti_‐Corruption Action Plan (ACAP) ...32

4.7.2 Community Representative Observers (CRO)...33

4.7.3 Publication / Disclosure ...34

4.7.4 Complaints Handling Mechanism (CHS) ...35

4.7.5 Third Party Monitoring (TPM) ...36

4.8 Road Safety Audit ...36

5 FINANCIAL & MANAGEMENT INFORMATION SYSTEMS...37

5.1 Draw_‐Downs and Future Costs...37

5.2 Disbursement...37

6.1.2 Agreed Key Actions and Mission Plans...43

6.1.3 Performance Indicators...45

6.2 Implementation Support Components...45

6.2.1 Core Team Consultant (CTC) ...45

6.2.2 Design and Supervision Consultant (DSC) ...46

6.2.3 Road Sector Institutional Development ...46

6.3 Training...47

6.4 Anti_‐Corruption Issues...48

6.4.1 Anti-Corruption Action Plan (ACAP) ...48

6.4.2 Community Representative Observers (CRO) ...49

6.4.3 Third Party Monitoring (TPM) ...49

6.4.4 Complaint Handling System (CHS) ...50

6.4.5. Publication / Disclosures ...51

6.4.6. Problem and Solutions ...51

6.4.7. Action Plan for Next Months ...51

6.5 Road Safety Audit ...52

6.6 Environmental and Social Impact Issues...53

6.6.1 Package No.01: Krui – Biha...53

6.6.2 Package No.02: Padang Sawah – SimpangEmpat ...53

6.6.3 Package No.03: Manggopoh – Padang Sawah ...54

6.6.4 Package No.04: Ipuh – Bantal ...54

6.6.5 Package No.05: Sp. Rampa – Poriaha...54

6.6.6 Package No.06: Psr.Pedati – Kerkap ...54

6.6.7 Package No.07: Indrapura – Tapan...55

6.6.8 Package No.08: Bts Kota Pariaman – Manggopoh ...55

6.6.9 Package No.09: Rantau Tijang – Kota Agung ...55

6.6.10 Package No.10: Sp. Empat – Air Balam...55

6.6.11 Package No.11: Bantal - Mukomuko ...56

6.6.12 Package No12: Kambang – Indrapura ...56

6.6.13 Package No.13: Sp. Rukis – Tj. Kemuning ...56

6.6.14 Package No.14: Painan – Kambang...56

6.6.15 Package No.15: Sibolga – Bts. Tapsel ...57

6.6.16 Package No.16: Sebelat – Ipuh ...57

6.6.17 Package No.17: SP. Gunung Kemala – Pg. Tampak ...57

6.6.18 Package No.18: Mukomuko – Bts. Sumbar ...57

6.6.19 Package No.19: Lais - Bintunan ...58

6.6.20 Package No.20: Lubuk Alung – Sicincin...58

6.6.21 Package No.21: Lubuk Alung – Kuraitaji ...58

6.8 Quality Assurance ...67

6.9 Project Risks and Mitigation Measures ...67

6.9.2 Financial Risks ...67

6.9.3 Risks Related to Quality ...68

7 ISSUES and RECOMMENDATIONS ...68

7.1 Current Situation...68

7.2 Action Required ...68

ABBREVIATIONS AND ACRONYMS

ACAP : Anti Corruption Action Plan

AER : Application Evaluation Report

AIP : Australian Indonesia Partnership

AMDAL : Environmental Management (Analisis Mengenai Dampak

Lingkungan)

ANDAS : Analisis Dampak Sosial

AWPs : Annual Work Programs

Balai : Regional Office for National Roads Implementation

BAPPENAS : Badan Perencanaan Pembangunan Nasional (National

Development Planning Agency of GOI)

Bappedalda : Regional Environmental Impact Agencies

BBPJN : Balai Besar Pelaksanaan Jalan Nasional (Regional Office

for National Roads Implementation)

BER : Bid Evaluation Report

BLH : Badan Lingkungan Hidup

BPK : Badan Pemeriksaan Keuangan (Audit Board of the

Government of Indonesia)

CAD : Computer Aided Design

CHS : Complaint Handling System

CTC : Core Team Consultant

CHU : Complaint Handling Unit

CRO : Community Representative Observer ( = WPM)

DIA : Directorate of Implementing Affairs

DOP : Directorate of Planning

DGH : Directorate General of Highways

DMS : Document Management System

DTA : Directorate of Technical Affairs

DMS : Document Management System

DSC : Design and Supervision Consultants

EA : Executing Agency

EINRIP : Eastern Indonesian National Roads Improvement Project

EIRTP-1 : Eastern Indonesia Regional Transport Project First Project

ESAMP : Environmental and Social Assessment Plan

ESS : Environmental and Social Safeguards

FMIS : Financial Management Information System

FIDIC : Federation Internationale des Ingenieur Conseils

FMIS : Financial Management Information System

GOI : Government of Indonesia

IA : Implementation Agency

IBRD : International Bank for Reconstruction and Development

IFR : Internal Financial Report

IRMS : Integrated Road Management System

Kabupaten : Regency

KPIs : Key Performance Indicators

KPPN : Kantor Pelayanan Perbendaharaan Negara (Indonesian:

State Treasury Service Office)

LAN : Local Area Network

LARAP : Land Acquisition and Resettlement (Rencana Tindak

Pengadaan Tanah dan Pemukiman Kembali)

MIS : Management Information System

MOF : Ministry of Finance

MPW : Ministry of Public Work

MPRs : Monthly Progress Reports

P2JN : Perencanaan Pengawasan Jalan dan Jembatan Nasional

PDF : Portable Document Format

PMU : Project Management Unit

PAPs : Project Affected Peoples

PMM : Project Management Manual

PMU : Project Management Unit (WINRIP)

POKJA : Bina Marga Project Managers and Procurement Committes

PPC : Project Preparation Consultants

PP3 : Pemantau Pihak ke 3

PPK : Sub Project Manager

PPR : Project Progress Report

QPRs : Quarterly Progress Reports

RKL/RPL : Rencana Pengelolaan/Pemantauan Lingkungan

RS : Road Safety

Satker : Satuan Kerja (Work Unit for Road Project Implementation)

SPPL : Surat Pernyataan Pengelolaan Lingkungan

SRIP : Strategic Road Infrastructure Project

TA : Technical Assistance

WINRIP : Western Indonesia Roads Improvement Project

WB : World Bank

WP : Work Program

WPs : Works Programs

WPM : Wakil Pengamat dari Masyarakat (or Community

APPENDICES

Appendix A

:

Overall Loan Progress

Appendix B

:

Highway Design Progress

Appendix C

:

Financial Progress

Appendix D

:

Quality Assurance Progress

Appendix E

:

Environmental and Social Progress

Appendix F

:

Procurement Plan and Progress

Appendix G

:

WINRIP Website Progress

Appendix H

:

ACAP Training/Dissemination Progress

Appendix I

:

Performance Indicator

Appendix J

:

Correspondences

ANNEX

1 EXECUTIVE SUMMARY

1.1 Current Implementation Situation Civil Works

Implementation of the WINRIP Project is scheduled to be implemented into three (3) Annual Work Programs (AWP’s).

AWP-1 original implementation is scheduled to begin with the pre-construction activities (procurement) in mid 2011 and the actual work implementation to start in mid 2012.

AWP-2 consist of three (3) implementation stages. The 1ststage is the preparation of Tender Documents (construction drawings, bid document, special specs and other related document) by Design Supervision Consultant (DSC), 2ndstage in the procurement and the 3rd stage is the actual implementation of the works. AWP-2 is originally scheduled to start in mid 2013 and to be implemented at the beginning of Year 2014.

AWP-3 implementation stages are of the same sequence with that of AWP-2. The only difference is that AWP-3 is originally schedule to take-off beginning the 1stmonth of the Year 2013 and to be implemented in the 1st_{month of the Year 2015.}

But to due some unavoidable circumstances, the original schedules incurred delays. Actual implementation status are shown below.

AWP No. of

Packages

Implementation Status as of 31 May 2014

AWP-1 4 Under construction

AWP-2 9

3 Nos. Application Eval. Report 1 No. Procurement preparation 4 Nos. DED Road Safety revision 1 No. DED

AWP-3 8

1 No. Application Eval. Report 2 Nos. Procurement preparation 5 Nos. DED

1.2 Disbursement

Loan Allocation and Percent (%) Disbursement To Date

The total disbursement from the loan to the end of May 2014 was USD 6,109,480.50 equivalent to approximately 2.44% of the loan funds. The following table summarizes the individual disbursementsas calculated by CTCbut retaining the total disbursement from

Client Connection at the end of May 2014. Appendix A shows the Overall Loan Progress

Status. Category Description Loan Restructuring Amount US$ Disbursement This Period Previous Disbursement Totals Disbursed to End May in US$

% Disbursed

1

Part 1Betterment and Capacity Expansion of

National Roads.

220,400,000.00 1,142,944.58 2,732,200.92 3,875,145.50 1.76

2 Part 2

Implementation Support 16,000,000.00 0,00 1,574,976.48 1,574,976.48 9.84

3

Part 3

Road Sector Institutional Development

1,000,000.00 0,00 0 0 0

4

Part 4

Contingency for Disaster Risk Response

0 0 0 0

Unallocated 12,600,000.00 0,00 0 0 0

LN 8043

DA-A 659,358.52 659,358.52 0

1.45 4.35 4.35 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 Month % C o m p le te

Actual Expenditure USD 6.11 mil (2.44 %)

WINRIP ACTUAL PROGRESS UP TO May 2014 AND FORECAST UP TO DECEMBER 2017

ACTUAL May 2014

Forecast May 2014 Forecast Expenditure USD

97.88 mil (39.15%)

1.3 Visit

A World Bank mission started with kick-off meeting in DGH on 28 April 2014 and continued with site visits to West Sumatera on 6 through 9 May. The Wrap-up meeting was held on 19 May 2014. More details of the mission can be found in Section 6.1.1 of this Report.

1.4 Procurement

As of the end of this reporting month Application Evaluation Report (AER) for the four (4) Contract Packages were finalized for submission to World Bank for concurrence and issuance of No Objection Letter (NOL).

The Contract Packages are as follows :

1. Package 17 (Sp. Gunung Kemala – Pugung Tampak).

There were twelve (12) interested bidders who submitted their prequalification documents. After thorough review and evaluation of the documents by the Procurement Committee, the Application Evaluation Report (AER) qualifies six (6) applicant bidders to be invited to submit their respective bids to implement the works.

Comments and issues raised by the World Bank on the 1st submission of the Application Evaluation Report (AER) were resolved during a special meeting held in the previous month jointly attended by representatives of PMU, POKJA, WB and CTC.

In this reporting month, POKJA resubmitted the Application Evaluation Report (AER) wherein all the issues and comments that were raised by WB were all incorporated in the 2ndsubmission.

The Director of Implementation Affairs Region I officially endorsed the Application Evaluation Report (AER) to BIPRAN for resubmission to World Bank for concurrence and issuance of No Objection Letter (NOL).

2. Package 11 (Bantal – Mukomuko)

There were three (3) applicant bidders out of eleven (11) interested Contractors who submitted their prequalification documents were prequalified after the Procurement Committee finalized the Application Evaluation Report.

As mentioned in the last Monthly Progress Report, special meeting between PMU, WB, POKJA and CTC was held mainly to resolved issues and comments on the AER prior to submission to the World Bank.

POKJA submitted the AER during this month wherein all the issues and comments raised during the meeting were incorporated.

CTC reviewed the documents and forwarded to PMU for PMU’s endorsement to Director of Implementation Affairs Region I.

As of this writing, Bank concurrence and issuance of No Objection Letter (NOL) is still to issued.

3. Package 13 (Sp. Rukis – Tj. Kemuning)

Ten (10) interested applicant bidders have submitted their prequalification documents and out of the 10 who submitted the PQ document 3 applicants were prequalified by the Procurement Committee to submit tenders to execute the

works.

As a result of the special meeting held before the month of May 2014 started wherein representatives of WB, PMU, POKJA and CTC were in attendance, the Application Evaluation Report (AER) has been finalized.

CTC reviewed the Report and transmitted the AER to PMU’s endorsement to the Director of Implementation Affairs Region I.

To date, the World Bank still to concur and issue No Objection Letter (NOL). 4. Packages 5 (Simpang Rampa – Poriaha)

There were 14 (Fourteen) contractor applicants (13 single company and I joint venture operation) who submitted their prequalification documents. Three (3) contractor applicants failed to prequalify due to failure to satisfy the qualification criteria. Likewise, the II (Eleven) contractors who passed the qualification criteria are eligible to be invited to submit their respective tenders.

Prior to the final preparation of the Application Evaluation Report (AER) by POKJA, special meeting between PMU, WB, POKJA and CTC was conducted to address all issues, concerns and comments.

As all the issues and comments were addressed and incorporated in the AER, CTC forwarded the documents for PMU’s endorsement to the Director of Implementation Affairs Region I.

To date, the Application Evaluation Report (AER) is still to be forwarded to World Bank for their final review for concurrence and issuance of No Objection Letter (NOL).

1.5 Consolidated Update of the Progress of the Project

Other brief updates of the pre-construction activities of this reporting month are shown in Table 1.1.

Consolidated Project Status As Of End May 2014 Table 1.1

Length Width Estimated Cost PIP Mar

2012 (Excl. VAT) DED Technical Design Review Road Safety Audit

(Km) (m) (IDR Milion) Status Doc

Requirement Status Doc Requirement Status Budget Allocation Status Est’d. Start Duration (Months) 1 Krui - Bha 25 7 146,668.00 Completed Completed Completed SPPL & AMDAL

(No.1 & 17) SPPL OK P2JN 2010 & AMDAL Subdit TLKJ OK

2012

1.LARAP 2.Lap.Mon LARAP

1.NOL WB 4 Jan 13 2.NOL WB

Satker PJN

Prop 98% Completed Jan-14 24.00 A

Padang Sawah - Sp. Ampat 40.9 7

Including Air Gadang Bridge 100 m 7

3 Manggopoh - Padang Sawah 32 7 152,434.90 Completed Completed Completed SPPL OK P2JN 2010 1.LARAP 2.Monit. LARAP

Report

1.NOL WB 13 Dec

12 2.Process Dinas PU Prop 99% Completed Jan-14 24.00 A

4 Ipuh - Bantal 42.4 7 226,275.10 Completed Completed Completed SPPL & UKL&UPL

SPPL OK P2JN 2010 & UKL?UPL under preparation by local consultant 1.LARAP 2.Monit. LARAP Report

1.NOL WB 10 Dec 12 2.Completed

APBN/SAL201

3 100% Completed Jan-14 24.00 A

5 Sp. Rampa - Poriaha 11.1 6 55,126.60 Completed Completed Completed UKL/UPL OK Balai 1 2011

1.SLARAP 2.LARAP monit

Report

1.Nol WB 10 Dec 12 2.relocation 1 kiosk affected project w ill be done paralel construction

Balai 1 0% On Going Des-13 18.00 B

6 Ps. Pedati - Kerkap 25 7 72,018.80 Completed Completed Completed UKL/UPL OK TLKJ 2011 1.SLARAP 2.LARAP monit

Report

1.NOL WB 20 Nov 2013 2. Target of Larap Implementation is August 2014 Balai 3 Inventory Stage of PAP

Not Yet Started Apr-14 18.00 D

7 Indrapura - Tapan 19.5 7 96,921.00 Completed Completed Completed AMDAL OK TLKJ 2014 SLARAP Target July 2014 Balai 2 Staking Out Not Yet Started feb-15 21.00 E

8 Bts. Kota Pariaman - Manggopoh 46.8 7 183,268.80 Completed Completed Completed AMDAL OK TLKJ 2013 LARAP Target LARAP July 2014 Balai 2

Target Mon:

Oct 2014 Not Yet Started Dec-14 24.00 E

9 Rantau Tijang - Kota Agung 42 7 149,831.50 UKL/UPL OK TLKJ 2011 LARAP

Being prepared by Consultant recuirement (Balai

3)

APBN 2016 Not Yet Started Jul-15 21.00 C

10 Sp. Empat - Sp. Air Balam 61.7 7 241,617.20 Completed Completed Completed AMDAL OK TLKJ 2013 LARAP Target July 2014 Balai 2 Target Mon:

Oct 2014 Not Yet Started Dec-14 24.00 E

11 Bantal - Mukomuko 50.1 6 157,820.00 Completed Completed Completed AMDAL OK TLKJ 2014 1.LARAP 2.LARAP monit

Report

1.Nol WB :20 Nov 2013 2.Target August

2014

Balai 3 10% On Going Apr-14 24.00 B

12 Kambang - Indrapura 55.2 6 171,948.00 Completed Completed Completed AMDAL OK TLKJ 2014 SLARAP Target July 2014 Balai 2 Staking Out Not Yet Started feb-15 24.00 E

13 Sp. Rukis - Tj.Kemuning 56.3 7 225,481.50 Completed Completed Completed UKL/UPL OK P2JN 2011 1.LARAP 2.LARAP monit

Report

1.NOL WB:20 Nov 2013 2.Target Dec

2014

Balai 3 Inventory On Going Apr-14 21.00 B

14 Painan - Kambang 31.5 7 118,993.00 On Going AMDAL OK TLKJ 2014 SLARAP Consultant recuirement (Balai

2)

Balai 2 Staking Out Not Yet Started Jul-15 21.00 G

15 Sibolga - Bts.Tap Sel 36 7 129,228.00 Completed Completed Completed UKL/UPL OK Balai 1 2011 1.LARAP 2.LARAP monit Report 1.NOL WB:5Feb 2014 2.Target Dec 2014

Balai 1 Inventory Not Yet Started Apr-14 21.00 D

Seblat - Ipuh including 34.5 6 Air Lalang & Air Guntung Bridge 64 m 6 36.8 6 30 m 6

18 Mukomuko - Bts.Sumbar 25.8 6 69,233.00 UKL/UPL OK TLKJ 2011 SLARAP

Being prepared by Consultant recuirement (Balai

3)

Balai 3 Staking Out Not Yet Started Oct-15 18.00 C

19 Lais - Bintuan 11.6 7 37,558.00 Completed Completed Completed UKL/UPL OK TLKJ 2011 1.LARAP 2.LARAP monit

Report

1.Nol WB :20 Nov 2013 2.Target August

2014

Balai 3 Inventory Not Yet Started Oct-15 18.00 D

20 Lubuk Alung - Sicincin 14.6 7 54,557.00 On Going UKL/UPL OK TLKJ 2011 SLARAP Revision by Consultant recuirement (Balai

2)

Balai 2 Staking Out Not Yet Started Oct-15 18.00 F

21 Lubuk Alung - Kurajati 16.8 7 65,788.00 On Going UKL/UPL OK TLKJ 2011 SLARAP Revision by Consultant recuirement (Balai

2)

Balai 2 Staking Out Not Yet Started Oct-15 18.00 F

2,776,633.60 Remarks :

A On going Construction = 3 Packages in 1 study AMDAL (West Sumatera Province) B Application Evaluation Report (AER) for submission to WB

C Detailed Engineering Design Still to be prepared = 2 Packages in 1 study AMDAL (Bengkulu Province) D Procurement Preparation Underway - Standar Bidding Documents (SBD) and Owners Estimate (OE) core underfine finalization.

E DED/RSA under review by Directorate of Technical Affairs F Technical Design Review is on-going

APBN/SAL201 3 OK TLKJ 2014

AMDAL

Completed AMDAL (No.1 &17)

1.NOL WB: 20 Nov 2014 2.Target Dec 2014 1.LARAP 2.LARAP monit Report 21.00 Jul-15 Not Yet Started Staking Out Balai 3

B C

AWP-3

Inventory On Going Apr-14 21.00 OK TLKJ 2011

1.LARAP 2.LARAP monit

Report

1.NOL WB: 16 Sep 2014 2.Target Dec

2014

16 110,237.00 On Going

17 Sp.Gunung Kemala - Pg.Tampak 104,238.00 Completed Completed

AWP-2

Remarks Contract Implementation Plan Loan Package Name

2 207,390.20 Completed Completed Completed SPPL&UKL/ UPL Bridge OK P2JN 2010

Environmental Social Land Acquisition

24.00 A Group Pack. No. Procurement Status AWP-1 1.LARAP 2.Monit. LARAP Report

1.NOL WB 13 Dec 12 2.Pending Compensation for the remaining 21

PAP

2

PROJECT DESCRIPTION

2.1 Background

The Government of Indonesia wishes to continue strengthening of the National Road system in Indonesia while the Eastern Indonesia National Roads Improvement Project (EINRIP which is assisted by AusAID through the Australian Indonesia Partnership or AIP), is providing support program of National road and bridge improvement works in Eastern Indonesia. The Western Indonesia National Road Improvement Project (WINRIP) will provide similar support for National road and bridge in the Sumatera region of Indonesia. The focus of WINRIP will be roads administered directly by the National Government, including those currently classified as Provincial, Kabupaten (District) or non-status roads which are in process of being reclassified as National roads. In addition, provision will be made for major bridge repair works, rehabilitation, duplication and replacement as necessary to complement road betterment works.

2.2 Project Development

The loan effectiveness date for the WINRIP is 12 March 2012 and key project data is shown in the following detail.

Key Project Data WINRIP Loan No. 8043-ID

Project Cost US$350 million

Original Loan Amount US$250 million

Revised Loan Amount N/A

Board Approval Date 26 May 2011

Loan Signing Date 14 December 2011

Effectiveness Date 12 March 2012

Disbursement (as of 31 December 2013) US$ 2.2 million (0.88%)

Original Closing Date 31 December 2017

Environmental Category B-Partial Assessment

The IBRD loan amount is US$250 million. The Project is intended to finance a part of the DGH investment program for national roads with a particular focus on the Western corridor of Sumatera. The corridor is one of the three main corridors in Sumatera and connects the city of Padang (with a population of around one million) to major towns along the west coast (Bukittinggi, Sibolga and Bengkulu). It also connects through connector roads on the West coast to Medan in the northeast and to Pekanbaru in the centre of the island. The project has four components:

and costs of civil works at estimated current (year of implementation) prices, excluding taxes.

Table 2.1 Proposed Physical Works by DGH Program

Type of Works

AWP-1 AWP-2 AWP-3

Km _MillionUSD Km _MillionUSD Km _MillionUSD

Road Betterment - - 53.10 22.77 -

-Capacity Expansion 137.10 79.70 314.60 127.67 207.60 74.58

Bridge works 0.100 1.94 - - 0.08 2.06

TOTAL

(excluding tax @ current prices) 137.20 81.64 367.70 150.45 207.68 76.65

The batches of projects are termed Annual Work Programs (AWPs) in line with terminology used in other Bina Marga projects. They are not in fact “annual” programs as such but rather a series of multi-year programs, each commencing in consecutive years. Hence, hereinafter it will call as just Work Programs (WPs). It is expected that implementation of the first Works Program (WP-1) will commence in the third quarter of 2013 and be completed by third quarter or late 2015. The second Work Program (WP-2) is expected to commence in early 2014 and be completed by late 2015 or middle 2016. The third Work Program (WP-3) is expected to commence in early 2015 and be completed by mid-2017. The loan will be closed

onDecember 2017.

Table 2.2 presents details of the First Works Program (WP-1). The four packages in this group should have been free from any land acquisition issues, but in fact two packages (Krui – Biha and Manggopoh – Padang Sawah) had land issues which were solved by the DGH properly. Thus, there are no foreseeable impediments to implementation.

Table2.2 IBRD Assisted WINRIP Civil Work WP-1

No Province Link No. Link Name C la s s R o a d T y p e

Road Works Bridge Works Total Cost

F ro m T o L e n g th T re a tm e n t C o s t (2 0 1 0 ) No L e n g th C o s t (2 0 1 0 ) 2 0 1 0 P ri c e s E q u iv a le n t

Km Km Km Rp mill m Rp

mill Rp mill US$ mill 1 Lampung 053.0Krui –_Biha K1 IU 221.5 246.5 25.0Bett’nt_{to 7 m.} 148,668 148,668 16.52

2 West Sumatera 047.2 PadangS awa – Simpang Empat

K1 IU 0.0 40.9 40.9Bett’nt

to 7 m. 189,810 189,810 21.09

2a West

Sumatera 34.1

AirGadan

gBridge K1 IU

New

Bridge 1 100 17.580 17,580 1.95

3 West_Sumatera 047.1Manggopoh – PadangS

No Province Link No. Link Name C la s s R o a d T y p e

Road Works Bridge Works Total Cost

F ro m T o L e n g th T re a tm e n t C o s t (2 0 1 0 ) No L e n g th C o s t (2 0 1 0 ) 2 0 1 0 P ri c e s E q u iv a le n t

Km Km Km Rp mill m Rp

mill Rp mill US$ mill

awah

4 Bengkulu 015.3Ipuh

-Bantal K1 IU 0.0 49.7 49.7 Bett’nt

to 7 m. 226,275 226,275 25.14

It should be noted that all road sub-projects have been subject to economic appraisal and have estimated Economic Internal Rates of Return (EIRR) in excess of 15%. These were selected for inclusion and are subject to completion of environmental and social screening, to confirm that there is no land acquisition or resettlement requirements remain outstanding.

Final Engineering Designs, Engineer’s Estimates and bidding documents have been completed for all projects proposed for WP-1.

Sub-projects to be included in WP-2 and WP-3 have also been determined as listed inTable 2.3. Final Engineering Designs and Engineer’s Estimates for all WP-2 and WP-3 proposed works require preparation or finalization. In the cases of some projects, preliminary Engineering Designs were prepared during Project preparation which will require review and possible amendment by the Design and Supervision Consultant prior to procurement.

The costs presented in Table 2.3 are planning estimates only, and the overall scope and contents of WP-2 and WP-3 may need to be revised as when revised costs and budgets are determined.

Table2.3: IBRD Loan WINRIP Civil Work WP-2 and WP-3

NO. SUBPROJECT LINK NO. AND NAME LENGTH

(KM) ENGINEER’S ESTIMATE (RP. MILL) WIDTH (M) IMPLEMENTATION PLAN START DURATION (MONTHS) WP-2

5. Sumut : Link No. 015.xx,

Sp. Rampa– Poriaha 9.7 152,870 6.0 Aug 2014 18

6. Bengkulu : Link No. 010.0,

Ps. Pedati – Kerkap 20.88 92,127 7.0 June 2014 15 7. Sumbar : Link No. 019.0,

NO. SUBPROJECT LINK NO. AND NAME LENGTH_(KM)

ENGINEER’S ESTIMATE (RP. MILL)

WIDTH (M)

IMPLEMENTATION PLAN

START DURATION

(MONTHS)

10. Sumbar : Link No. 034.1,_{Sp. Empat - Sp. Air Balam} 61.7 546,065 7.0 Sep 2014 24

11. Bengkulu : Link No. 015.2,_Bantal

– Mukomuko 50.1 246,500 6.0 August 2014 24

12. Sumbar : Link No. 017.2,

Kambang – Indrapura 55.2 498,619 7.0 Sep 2014 24 13. Bengkulu : Link No. 006.1,

Simpang Rukis - Tanjung Kemuning 56.3 316,305 7.0 August 2014 24 WP-3

14. Sumbar : Link No. 017.1,

Painan – Kambang 31.5 118,993 7.0 Jan 2015 21

15. Sumut : Link No. 016.0,

Sibolga - Bts. TapSel 36.0 353,956 7.0 August 2014 30

16.

Bengkulu : Link No. 009.4,

Seblat – Ipuh, including Air Galang and Air Guntung Bridges

34.5

0.052 110,237 6.0 Jan 2015 21

17. Lampung : Link No. 061.1,

Sp. Gunung Kemala - Pugung Tampak 36.8 255,269 6.0 August 2014 24 18. Bengkulu : Link No. 015.3,

Mukomuko - Bts. Sumbar 25.8 69,233 6.0 May 2014 18 19. Bengkulu : Link No. 009.1,

Lais – Bintuan 10.8 35,886 7.0 June 2014 10

20. Sumbar : Link No. 002.0,

Lubuk Alung – Sicincin 14.6 54,557 7.0 Jan 2015 18 21. Sumbar : Link No. 027.0

Lubuk Alung – Kuraitaji 16.8 65,788 7.0 Jan 2015 18

Project Component 2: Implementation Support

This component provides consulting services to support project management and implementation so as to ensure implementation efficiency and overall quality of the works. It also includes funds for a small amount of training of DGH staff and for incremental operating costs for the project. This will provide support to the MPW for the implementation of the civil works, including: (a) provision of Core Team Consultants (CTC), Design and Supervision Consultants (DSC) and road safety audits; (b) Project management support and technical audits. This is directly related to the implementation of the civil works and covers consulting services for design and supervision of the civil works in Component 1; management support and technical audits to help improve the quality of construction and support to governance improvements during procurement and implementation; and a series of systematic road safety audits of road designs for all project roads in Component 1. This is to ensure compliance with road safety standards and regulations, identify road hazards and undertake remedial treatments for safety improvements.

Project Management Core Team Consultants (CTC)

The CTC will provide support to the PMU and DGH in the management of the Project, based in Jakarta. Their tasks include financial and progress monitoring and reporting, information management and dissemination, quality assurance and performance review for the Design and Supervision Consultants, 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 CTCcontract No.

06-20/CTC/TA/LN/8043/1112 was signed on 5 November 2012 by both DGH and a Joint

Venture of PT. PerentjanaDjaja, Yongma Engineering Co,Ltd, and PT. Epadascon

Permata Engineering Consultant.

Design and Supervision Consultants (DSC)

A Design and Supervision Consultant (DSC) will be responsible for design of 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 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.

Project Component 3: Road Sector Institutional Development

This component will provide technical assistance and support to strengthen disaster risk mitigation in the road sector, including capacity building support for the new environment/risk mitigation and road safety unit of DGH to conduct disaster risk assessments and planning, risk mapping of land-slides, coastal erosion, earthquake and floods, and analysis of alternative designs for road segments that pass through critical environmental assets and vulnerable areas. The procurement for consultants under this component has not yet been started. Preparation for the procurement would be coordinated soon by the PMU WINRIP, the CTC and the DGH.

2.3 Project Objective

The main objective of the program will be to increase the effective use of selected sections of National roads along the Western Sumatera Corridor by reducing road

user costs, through improving the National road network especially in 4 (four) Provinces of

Sumatera (North Sumatera, West Sumatera, Bengkulu and Lampung) and, where desirable, raise the road standard to that set by the Directorate General of Highways. This will contribute significantly to ensuring that the National road network in the region provides acceptable standards of service and accessibility, and is capable of supporting local and regional economic development.

3

CONSULTANCY SERVICES

3.1

CTC Consultants

3.1.1 Scope of Services

The CTC contract services originally were structured in its different project management elements.

• Inception Phase

A key activity during the inception phase will be to establish lines of communication with PMU-WINRIP and DSC’s Team Leader as well as with all Provincial Project Managers (Satkers) where the first works are to be constructed under WP-1.

• Project Management and Support to PMU, including acting DSC until the DSC is established

The Terms of reference identify a number of sub-items to be performed by CTC. The key factor that will ensure success is that the CTC must work pro-actively and alongside PMU counterparts and with DSC team in a professional manner based on mutual respect and trust.

• Preparation of Work Programs

The tendering process for WP 1 sub-projects began as soon as procurement committees have been formed and received appropriate training in the procurement procedures required. The indicative work programs and cost estimates identified for WP-2 and WP-3 are subject to verification, and are likely to change following more detailed investigations. Further preparation for WP-2 and WP-3 will be managed by the PMU supported by the CTC.

• Financial Monitoring

It will be the role of the CTC to first assess the level of understanding of the financial management, monitoring and reporting procedures by the finance staff at the provincial and central level and subsequently devise an appropriate training program and assist the PMU in training delivery.

• Project Progress and Performance Monitoring

CTC will monitor the loan project progress and prepare the report in monthly basis. In the meantime, GOI and the World Bank have agreed on a set of Key Performance Indicators (KPIs) to measure the project’s performance in achieving its stated development

• Support for the Implementation of the ACAP

The CTC will assist PMU be responsible for ensuring the ACAP is properly implemented and for revising the Project Management Manual on an annual basis to incorporate necessary improvements to processes and procedure.

• ESAMP and LARAP Implementation Monitoring

CTC will closely work with BLH and DSC and will monitor and report the action of the Environmental Management Plan on a periodical basis and/or as required.

• Training to Support Project Implementation

CTC is responsible for preparation and management of all training program required under WINRIP.

• Reporting

CTC is responsible for all reports required under the contract agreement with standardize forms, charts and tables.

3.1.2 CTC Manning

CTC professional staffs involved in the project as of end of May 2014 are listed in Table 3.1.

Senior Highway Engineer (International) have completed his allocated man-month in the original contract and Amendment No. 1 and demobilized on March 2014. Likewise, the Senior Road Safety Engineer (International) have also completed his man-month and have temporarily demobilized on March 2014 but have to be remobilized for two (2) months period during the post construction phase to conduct final Road Safety Audits.

Table 3.1

40.00 - - Mahbub ur Rahman - - - - A

- 35.25 - Per Weiss Pedersen Apr-13 Mar-14 10.50 - B

- - 23.00 C.T. Arenas Apr-14 - 1.70 21.30

Senior Highway

Engineer 8.00 12.50 14.00 Moon, Sung Hyung Mar-13 Aug-13 14.00 0.00 C Senior Road

Safety Audit 6.00 11.00 13.00 Cho, Woo Sung Jun-13 Mar-14 11.00 2.00 D

18.00 - - Wasim ur Rahman - - - - A

- 16.00 16.00 Sanjeev Kumar

Agarwal Jan-14 - 4.20 11.80

40.00 9.67 9.67 Besar Awiat Bowo Nov-12 Sep-13 9.67 - B

- 30.33 6.67 Agus Setiawan Sep-13 Mar-14 6.67 - B

- - 23.36 Julius J. Sohilait Apr-14 - 2.00 21.36

36.00 7.37 7.37 Whiliyanto Nov-12 Jun-13 7.37 - B

- 28.40 28.40 Lebiyartono Jul-13 - 10.97 17.43

Quality Assurance

Engineer 30.00 30.00 30.00 Uray Abdul Manaf Jul-13 - 10.97 18.03

36.00 12.33 12.33 Uus Martawijaya Nov-12 Nov-13 12.33 - B

- 22.40 22.40 YD Tarwanto Oct-13 - 7.97 14.43

Environmental

Specialist 30.00 30.00 30.00 Leti Hermawati Dec-12 - 17.43 12.57

35.00 - 11.33 M. Sutopo Nov-12 Oct-13 11.33 - B

- 26.00 26.00 Witono Sep-13 - 8.93 17.07

12.00 - - Darmansiri - - - - A

- 12.00 12.00 Muhdi - - - - E

12.00 - 4.10 Rudi Rungkat Nov-12 Mar-13 4.10 - B

- 24.00 24.00 M. Edhi Fachri Mar-13 - 14.17 9.83

30 - - Agung Lukito - - - - A

- 25.00 25.00 Sony Thamrin May-13 - 12.97 12.03

Community Development Officer

36.00 36.00 36.00 Yakobus Jan-13 - 14.90 19.10

Road Safety Audit

Engineer 25.00 25.00 19.00 Aditya Moraza Alwi - - - - E Bridge Engineer 5.00 5.00 5.00 Harimurti Suprihantoro Apr-13 Aug-13 5.00 0.00 C

Training Specialist 12.00 12.00 12.00 Roedjitarjo Jan-14 - 5.00 7.00 Remarks

A - Not able to mobilizied due to poor health or personal reasons B - Resigned due to personal reasons or poor health

Demob-ilized

Man - Month Used as of end

of May 2014

Man - Month

Remaining Remarks Original Contract Amendment No.1 Amendment No. 2 Highway Engineer POSITION

Man - Months Duration

Name Mobilized Team Leader Senior Procurement Specialist Assistant Team Leader Financial Management Specialist Social Impact Specialist Procurement Specialist-1 Procurement Specialist-2 Management Information Specialist

3.1.3 CTC Contract

The CTC contract for “Western Indonesia National Roads Improvement Project” (Contract No.06-20/CTC/TA/LN/8043/1112) was signed on 05 November 2012. The contract is between the Government of Indonesia represented by Directorate General of Highways in the Ministry of Public Works and PT. Perentjana Djaja in joint venture with Yongma Engineering Co.Ltd. and PT. Epadascon Permata Engineering Consultant.

The Notice To Proceed was issued by letter dated 6 November 2012 from the PPK, and the official starting date of the contract was set at 6 November 2012.

Likewise, Amendment No. 1 to the original contract was signed on 25 October 2013 to cover all requirements of the CTC at present which are summarized below.

• Replacement of the Senior Procurement Specialist

• Extending the assignment of the Senior Highway Engineer.

• Extending the assignment of the Senior Road Safety Audit Engineer.

• Extending the assignment of the Procurement Specialist 2 and replacement of the Procurement Specialist 1.

• Adding the new position of Bridge Engineer.

• Adding the new position of Training Specialist, and • Adding the new position of Road Safety Engineer.

Draft Amendment No. 2 is almost finalized for submission to PMU. Proposed amendment to the Original Contract and Amendment No. 1 are additional man-months for professional and technical staff for international and local, replacement of foreign and local consultants and modification to various reimbursables to match with the actual requirements. Presented in Table 3.2 is the current status of CTC contract.

Table 3.2

Description USD IDR

Original Contract 1,276,700 21,415,400,000

10% VAT 127,670 2,141,540,000

Total Original Contract 1,404,370 23,556,940,000

Amendment No.1 1,315,925 22,426,175,000

10% VAT 131,592 2,242,617,500

Total Amendment No. 1 1,447,517 24,668,792,500

Variance Against Original Contract +3,07% +4,72%

Amendment No. 2 * 1,371,925 *22,458,676,500

10% VAT *137,192 *2,245,867,650

Total Amendment No. 2 *1,509,117 *24,704,544,150

Variance Against Original Contract *+7,46% *+4,87%

3.2 DSC Consultants

A Design and Supervision Consultant (DSC) will be responsible for design of 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 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 has been established in Balai II Padang following the contract signing on 11 June 2013 between Balai II and Renardet SA in joint venture with PT. Cipta Strada, PT. Daya Creasi Mitrayasa, PT. Seecons and PT. Yodya Karya. The Notice To Proceed was issued by the Balai II on 19 June 2013.

Shown in Table 3.3 is the present status of the Design Supervision Consultant (DSC) contract.

Table 3.3

Description USD IDR

Original Contract 820,600 51,818,705,000

VAT 10% (GOI Portion) 82,060 5,181,870,500

Total 920,660 57,000,575,500

3.3 Technical Assistance for Capacity Building for Disaster Risks Reduction

Consultant still to be procured. Draft Terms of Reference is Under Finalization

3.4 Technical Assistance for Capacity Building for Environmental Management

Consultant still to be procured

3.5 Technical Assistance for Capacity Building for Road Safety

4

CIVIL WORKS

4.1 Detailed Design Preparation

Final Engineering Designs, Engineer’s Estimates and bidding documents have been completed for all projects proposed for WP-1.

WP-2 (nine subprojects) and WP-3 (eight subprojects) will be designed by DSC and the construction supervision of all the works programs will be performed by the same DSC team. In parallel with the instruction to speed up the process, detailed engineering design (DED) of some subprojects of WP-2 and WP-3 were prepared and completed by respective P2JN. The CTC has been instructed by DGH to review the DED of seven packages completed by the P2JNs (package 5, 6, 11, 13, 15, 17 and 19).

The Design Supervision Consultant (DSC) submitted two (2) detailed engineering design drawings for 2 sub-projects for CTC’s technical design review and Road Safety Audit.

The two (2) sub-project detailed design drawings are as follows : 1. Package No.20 : Lubuk Alung – Sicincin

2. Package No.21 : Lubuk Alung – Kurataji

CTC’s Highway Engineer conducted a thorough review of the drawing with respect to road geometry, typical roadway cross – section details, drainage requirements, roadway cross sections at every full station and other design features of the roads.

Corrections and suggestions were directly indicated in the drawings for easier reference in finalizing the drawings by the DSC.

In order to expedite the final preparation of the drawings CTC furnished the Designer the advance copies of the drawings sheets with comments, suggestion and corrections that are to be incorporated in the final submittal.

Progress of Technical Design Review and Road Safety Audit is included as Appendix B.

4.2 Procurements

Procurement shall be conducted under the Bank’s Procurement Procedures as mentioned in the Loan Agreement. The International Competitive Bidding (ICB) based on the Bank letter Ref. WINRIP/136 will apply to the packages with the construction estimated cost more than US$ 25 Million to comply with the new Bank’s threshold for ICB. According to the GOI regulation, a prequalification shall be applied for the packages with the construction estimated cost more than IDR 10 Billion. Review from previous procurement process, the World Bank in the Aide Memoire requested to GOI, for next 4 ICB subprojects qualification still used Pre-Qualification and for

remaining sub-project must be process with Post Qualification. As well as for all NCB the World Bank also requested to follow Post Qualification in procurement process.

All subprojects for WP-1 have been started with prequalification since 30 December 2011 for ICB multiple contract. This was an advanced procurement action agreed by both DGH and the World Bank prior to the CTC establishment. All AWP-1 sub-projects had signed the contract. The last 2 sub-projects, Package 02: Pd. Sawah – Simpang Empat and Package 03: Manggopoh – Padang Sawah, signed the contract on December 6, 2013 and NOL for disbursement for all 4 packages had been issued by the World Bank on December 10, 2013.

As of end of May 2014, Application Evaluation Reports (AER) for evaluations of submitted document by interested contractors were completed and ready for submission to World Bank for final review and issuance of No Objection Letter (NOL).

The following four (4) contract packages that were evaluated are as shown below : 1. Packages 17 (Sp. Gunung Kemala – Pugung Tampak)

2. Packages 11 (Bantal – Mukomuko) 3. Packages 13 (Sp. Rukis – Tj. Kemuning) 4. Packages 5 (Simpang – Rampa)

Procurement details of the above listed sub-projects and updates are fully described in Sub – Chapter 1.4 Procurement on page 3 of this Report.

Under Category 3 of Loan Agreement there are three (3) consultancy packages namely ; 1. Capacity Building For Disaster Risks Reduction

2. Capacity Building For Environmental Management 3. Capacity Building For Road Safety

Consultant for the three (3) consultancy packages are still to be procured.

Draft Terms of References for the three packages are in the process of finalization. The WINRIP updated Procurement Plan is attached asAppendix F.

4.3 Civil Works Implementation

All 4 contract packages under AWP-1 are currently under construction by different contractors. Commencement of works for all the 4 packages commenced on the 2nd_{week of}

Table 4.1

Program

Contract Package

#

Contractor Name of_Road Province Contract_Signed

Notice to Proceed Contract Time AWP-1 1 Jaya Konstruksi Manggala Pratama Tbk

Biha - Krui Lampung Nov 25, 2013

Jan 8,

2014 640 CD

2 Jaya Konstruksi Manggala Pratama Tbk Padang Sawah – Sp. Empat including Air Gadang West Sumatera Dec 6, 2013 Jan 6,

2014 730 CD

3 Jaya Konstruksi Manggala Pratama Tbk Manggopoh – Padang Sawah West Sumatera Dec 6, 2013 Jan 6,

2014 730 CD

4

PT. Waskita Karya and PT. Mulya Turangga (JO) Ipuh -Bantal Bengkulu Nov 14, 2013 Jan 10,

2014 730 CD

4.4 Civil Works Progress

As of the end of this reporting month, all the 4 contractors are still in the process of mobilization. Other activities done during this month were setting up of laboratory testing building, staking out and repair and restoration of deteriorated existing pavements, roadway excavation, embankment formation, construction of stone masonry side ditches and other minor works. Progress status of the four (4) on-going civil work contract as of this reporting period are shown in Table 4.2.

Table 4.2

Program

Contract Package

#

Contractor Name of_Road

Target Progress Schedule Ending May 2014 Actual Progress Accomplis hed Slippage AWP-1 1 Jaya Konstruksi Manggala Pratama Tbk

Biha - Krui 11.11% 2.93% - 8.12%

2 Jaya Konstruksi Manggala Pratama Tbk Padang Sawah – Sp.Empat incl.Air Gadang Brd

7.17% 3.85% - 3.32%

3

Jaya Konstruksi Manggala Pratama Tbk

Manggopo h – Padang Sawah

4.37% 2.78% - 1.59%

4

PT. Waskita Karya and PT. Mulya Turangga (JO)

Ipuh

It is to note that Contract Package No. 1 (Biha – Krui) is currently at an alarming stage with respect to work progress due to the considerable negative slippage (-8,12%) as of and of May 2014

At the rate the Contractor execute the works, it is expected that by next month the delay will slip further to the -10% mark if no realistic action plan or catch up schedule is implemented. It is presumed that the Design Supervision Consultant have done a concrete action to address the Contractor’s progress problem.

CTC drew the attention of DSC concerning what remedial measures to be imposed in the coming month in order to catch up with the schedule. CTC requested copy of any action plan agreed, but up to this writing, DSC never replied to CTC’s communication.

For Contract Package No.4 (Ipuh – Bantal), there was a big increase in the negative slippage of -5,47% as compared with a negligible delay of -0,61% in the previous month. To catch up with the schedule, a show-cause meeting attended by representatives from DSC, Contractors and the Implementing Agency was held, mainly to address the Contractor’s progress schedule.

As the accumulated delay is still in the manageable level, CTC suggested that the action plans proposed by the Contractors during Show Cause Meeting (SCM) shall be strictly implemented and closely monitored by the DSC Field Team with actual implementation report and progress be copied to this office.

As the Contractors were still in the mobilization stage, most of the delay incurred were attributed to difficulty in locating suitable base camps and quarry sites of unlimited quantities.

For contract packages under AWP-2 and AWP-3 which have a combined total of 17 packages, a brief summary of the actual activities and status as of this reporting period are presented in Table 1.1, page 5 of this Report.

4.5 Quality Assurance

The DSC will be responsible for quality assurance of materials and workmanship, certifying whether or not contractors have achieved the required results, as well as documentation and 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 Draft Final Quality Assurance Manual had been submitted on May 5, 2014 by CTC to PMU for further review and approval. Likewise, a copy of the Draft Final Quality Assurance manual was furnished to the Design Supervision Consultant for provisional reference for quality requirements of the projects.

4.6 Environmental and Social Considerations

4.6.1 Current Overall Situation

A project category is assigned to each package as either Category A, B or C depending on the likely degree of influence on environmental issues with a brief explanation as follows :

Category A project is one which will have a significant negative impact on the environment and may have an influence on areas outside the actual project area. A project classified as such requires an AMDAL (ANDAL, RKL/RPL) study.

Category B project is one which affects the people or the environment to some extent but with a smaller impact than a Category A. The required environmental analysis is a UKL/UPL study only.

Category C project has minimal effect on the people or environment and an environmental analysis is not required. SPPL or Standard operational procedures (SOP or SKPPL) are used to handle any minor problem which may arise.

Details of packages that require environmental and social safeguard are given in Appendix E and the following table provides a summary of the work involved in the 21 WINRIP packages.

All the 21 packages require environmental impact investigation. All 39 studies (18 environmental studies) need approval by Environmental Agency (BLH). And 21 social studies (SLARAP and LARAP) require the approval of the World Bank. Up to the end of May 2014 17of 18 packages (90%) has received BLH approval then the current have 12 of 21social studies or 57% has received approval from the World Bank.

Works Program

No of Packages

No of Investigations Approval by Remarks

BLH World Bank

AWP-1 4 8

AMDAL x 1 UKL&UPL x 2 SPPL x 4 Full LARAP x 4

1 (AMDAL) 1 UKL&UPL

4 (SPPL)

4 (Full LARAP)

Approved – NOL issued by WB (LARAP and AMDAL paket 1&17), except for SPPL

AWP-2 8 17

AMDAL Study x 4 UKL&UPL x 4 Simple LARAP x 1 Full LARAP x 8

4 UKL&UPL 4 AMDAL

1 SLARAP

1 (one) Study AMDAL for threes packages, are Packages No.7, 12 and 14 /packages on AWP2 &AWP3. 1 (one) Study AMDAL for two packages, are Packages No.11 & 16. /packages on AWP2 &AWP3.

AWP-3 9 14 Full LARAPx 8

AMDAL Study x

AMDAL OK = paket No.1& 17

2 Full LARAP

Approved – NOL issued by WB include AMDAL except for

Works Program

No of Packages

No of Investigations Approval by Remarks

BLH World Bank

1= Paket No.1 AWP 1 UKL/UPL x 5

5 UKL&UPL UKL/UPL

Total 21 39 Env=18,Soc=21 18 7

Note: UKL & UPL do not need a NOL from WB, and SPPL not necessary tosubmitto the WB. Appendix E shows the Progress of Environmental Safeguard Studies.

4.6.2 Environmental and Social Issues

This section outlines the activities of the Social Impact Specialist and the Environmental Specialist during May 2014.

4.6.2.1 Environmental Issues

The CTC’s Environmental Specialist is currently preparing the procedures/module for use in the training of the RKPPL/CPEMP (Contractor Program for Environmental Management Plan) and Environmental Impact Management And Mitigation Measures for the construction. In coordination Subdit Environmental.

1. Monitoring of Environmental Aspects During Construction

CTC provided monitoring forms to DSC for use in monitoring of environmental and social impacts. These forms are to be used every month by the DSC Environmental Specialist.

CTC’s environmental staffs actively advises DSC on environmental monitoring, but DSC have not directly carried out monitoring or to implement the Environmental and Social Analysis Management Plan for WINRIP.

After finalizing the Standard Environmental Clauses, CTC assisted Subdit Environmental Affairs to produce monitoring forms covering all aspects of the technical specifications, and introduced them to participants of environmental training including P2JN, Project Manager, DSC, Contractors, Team Work (Pokja) etc. There are 69 pages of forms, covering all aspects of construction.

2. Design Integration, Road Safety aspects and Monitoring of Environmental Studies

Task 5.8.0 of CTC-2 TOR (Implement the Environmental and Social Analysis Management Plan/ESAMP) and paragraf 10.9 of the PMM requires ensuring that environmental management aspects of contracts have been implemented in accordance with AMDAL,

4.6.2.2 Social Issues

1. Monitoring Report of the LARAP

Package No. 1 : Krui– Biha

Province : Lampung

A. Previous Status :

• LARAP documents approved by World Bank on January 4, 2013 • Monitoring Report approved by World Bank on April 18, 2013 B. Pending Issues, Concern and Actions

a) Existing mosque is partially traversed due widening of the existing travelled way.

b) Due to resistance to partially demolished and rebuild the mosque, a new action plan is proposed, where the road alignment centerline will be shifted to the other side.

c) Land acquisition is required on the other side of the road centerline alignment if the new action plan push through.

C. Update during this reporting month of May 2014 a) On-going construction

b) No Update this period

2. Monitoring Report of the LARAP

Package No. 2 : Padang Sawah – Sp. Empat

Province : Sumatera Barat

A. Previous Status :

• LARAP documents approved by World Bank on January 13, 2013 • Monitoring Report approved by World Bank on July 19, 2013 B. Pending Issues, Concern and Actions

a) Remaining twenty one (21) affected persons are not yet compensated by the Local Government. Five (5) of the twenty one (21) affected persons are residing along the proposed bridge site of Air Gadang Bridge.

b) Documents for compensation payments are being processed by the Local Government.

c) Monitoring Report concerning the payments to the remaining affected persons still to be prepared for submission to World Bank.

C. Update during this reporting month of May 2014 a) On-going construction

b) In line with the latest “Aide Memoire” (April 28-May 19, 2014) a simple LARAP documents is under preparation to be implemented on additional land acquisition specifically, on roadway cut section where a wider road right of ways are required to attain the desired/designed cut slope ratio of 1:1.

3. Monitoring Report of the LARAP

Package No. 3 : Manggopoh– Padang Sawah

Province : Sumatera Barat

A. Previous Status :

• LARAP documents approved by World Bank on January 4, 2013 • Monitoring Report approved by World Bank on April 18, 2013

• CTC received proof of compensation payments for five (5) of the affected persons out of the remaining fifteen (15) persons and Monitoring Report was submitted to World Bank on February 28, 2014.

B. Pending Issues, Concerns and Actions

a) Documents for compensation payments for the ten (10) remaining affected persons being processed by the Local Government.

b) Monitoring Report concerning compensation payments to the ten (10) remaining affected persons still to be prepared for submission to World Bank. C. Update during this reporting month of May 2014

a) On-going construction

b) Processing of documents for the 10 remaining affected persons were withheld by the Local Government as these 10 persons could not be located in their addresses shown in the LARAP.

c) Local Government has paid 67 new additional Project Affected Persons for compensation of additional road right of ways for roadway cut sections to attain the required cut slope of 1:1.

d) Monitoring Report for the additional land acquisition is under preparation by CTC for submission to World Bank by next month.

4. Monitoring Report of the LARAP Package No. 4 : Ipuh – Bantal

Province : Bengkulu

A. Previous Status :

•LARAP documents approved by World Bank on December 10, 2012

• CTC received proof of payments for 157 affected persons out of the 227 Project Affected Persons.

• Monitoring Report was submitted by PMU to World Bank on December 24, 2013 • World Bank transmitted their comments on the Monitoring Report to PMU on

January 6, 2014.

• For the remaining 70 affected persons, Local Government settled their compensation payments in January 2014 and February 2014.

• Monitoring Report for the compensation of the remaining 70 affected persons was submitted by PMU to the World Bank on February 28, 2014.

C. Update during this reporting month of May 2014 a) On-going construction

b) No update this month

5. Monitoring Report of the LARAP

Package No. 5 : Sp. Rampa– Poriaha

Province : Sumatera Utara

A. Previous Status :

• Comments on LARAP documents by World Bank were transmitted to PMU on September 16, 2013

• On September 23, 2013 World Bank wrote letter to Director of Implementation Affairs thru Satker/PPK to revise the LARAP documents in line with their comments. • CTC in consultation with PMU prepared the revised LARAP documents and

resubmitted it on November 6, 2014.

• World Bank accepted the revised LARAP documents on November 12, 2013. • On November 18, 2013 the Director of Planning issued a letter to the Director of

Implementation Affairs Region 1, that the LARAP documents can now be implemented in the acquisition of Right of Ways and removal of construction obstructions.

B. Pending Issues, Concern and Actions

a) PMU/CTC is awaiting the LARAP implementation Report from SATKER

C. Update during this reporting month of May 2014 a) No update this month

6. Monitoring Report of the LARAP Package No. 6 : Pasar Pedati - Kerkap

Province : Bengkulu

A. Previous Status :

• September 30, 2013, CTC received the LARAP documents from BBPJN III Palembang.

• After CTC’s review, PMU forwarded the documents to World Bank on November 13, 2013 requesting for No Objection Letter (NOL).

• Bank conducted their review and their comments were relayed to PMU thru letter on November 20, 2013.

• On November 27, 2013, the World Bank sent letter to the Director of Planning to request the Director of Implementation Affairs thru Satker/PPK to revise the LARAP documents by incorporating their comments.

• PMU resubmitted to the World Bank on January 9, 2014 the revised LARAP documents and was resubmitted again on May 21, 2014 due to some minor corrections.

B. Pending Issues, Concern and Actions

a) LARAP’s implementation still to be implemented by SATKER. C. Update during this reporting month of May 2014

a) Just before the end of this reporting month, on May 30, 2014, the World Bank interpose No Objection to the revised LARAP documents for implementation.

7. Monitoring Report of the LARAP Package No. 7 : Indrapura - Tapan

Province : Sumatera Barat

A. Previous Status :

• CTC received the Draft Final LARAP documents from Balai II/P2JN on January 2014

• After CTC’s review of the documents, comments were transmitted in the form of a MEMO DINAS to Balai II thru the Directorate of Implementation in Region I.

B. Pending Issues, Concern and Actions

a) Corrected LARAP documents still to be submitted for final review prior to submission to World Bank.

C. Update during this reporting month of May 2014

a) Finalization of corrected LARAP documents is under preparation by CTC

8. Monitoring Report of the LARAP

Package No. 8 : Bts. Pariaman - Manggopoh

Province : Sumatera Barat

A. Previous Status :

• CTC received the Draft Final LARAP documents from Balai II Padang on August 1, 2013

• CTC reviewed the documents with comments transmitted to PMU on September 9, 2013 and PMU forwarded to P2JN/Local Consultants the CTC’s comments requesting the documents for revision in line with CTC’s comments

B. Pending Issues, Concern and Actions

a) To date (May 2014) the revised LARAP documents have not yet been resubmitted by P2JN Local Consultant

b) CTC to suggest to PMU/Directorate of Implementation Affairs Region 1 to issue follow-up letter to P2JN/Local Consultant requesting that the documents must be resubmitted as soon as possible

9. Monitoring Report of the LARAP

Package No. 9 : Rantau Tijang– Kota Agung

Province : Lampung

A. Previous Status :

• LARAP documents are still to be prepared. B. Pending Issues, Concern and Actions

a) Still no issues and concerns.

C. Update during this reporting month of May 2014 a) Nothing to report this period.

10. Monitoring Report of the LARAP

Package No. 10 : Sp. Empat – Sp. Air Balam

Province : Sumatera Barat

A. Previous Status :

• CTC received the Draft Final LARAP documents from Balai II Padang on August 1, 2013

• CTC reviewed the documents with comments transmitted to PMU on September 9, 2013 and PMU forwarded to P2JN/Local Consultants the CTC’s comments requesting the documents for revision in line with CTC’s comments

B. Pending Issues, Concern and Actions

a) To date (May 2014) the revised LARAP documents have not yet been resubmitted by P2JN Local Consultant

b) CTC to suggest to PMU/Directorate of Implementation Affairs Region 1 to issue follow-up letter to P2JN/Local Consultant requesting that the documents must be resubmitted as soon as possible

C. Update during this reporting month of May 2014 a) Finalization of LARAP documents by CTC

11. Monitoring Report of the LARAP Package No. 11 : Bantal - Mukomuko

Province : Bengkulu

A. Previous Status :

• September 30, 2013, CTC received the LARAP documents from BBPJN III Palembang.

• After CTC’s review, PMU forwarded the documents to World Bank on November 13, 2013 requesting for No Objection Letter (NOL).

• Bank conducted their review and their comments were relayed to PMU thru letter on November 20, 2013.

• On November 27, 2013, the World Bank sent letter to the Director of Planning to request the Director of Implementation Affairs thru Satker/PPK to revise the LARAP documents by incorporating their comments.

documents and was resubmitted again on May 21, 2014 due to some minor corrections.

B. Pending Issues, Concern and Actions

a) Monitoring Reports of the LARAP’s implementation have to be prepared and submitted for review and for submission to World Bank.

C. Update during this reporting month of May 2014

a) Just before the end of this reporting month, on May 30, 2014, the World Bank interpose No Objection to the revised LARAP documents for implementation.

12. Monitoring Report of the LARAP

Package No. 12 : Kambang - Indrapura

Province : Sumatera Barat

A. Previous Status :

• CTC received the Draft Final LARAP documents from Balai II Padang on August 1, 2013

• CTC reviewed the documents with comments transmitted to PMU on September 9, 2013 and PMU forwarded to P2JN/Local Consultants the CTC’s comments requesting the documents for revision in line with CTC’s comments

B. Pending Issues, Concern and Actions

a) To date (May 2014) the revised LARAP documents have not yet been resubmitted by P2JN Local Consultant

b) CTC to suggest to PMU/Directorate of Implementation Affairs Region 1 to issue follow-up letter to P2JN/Local Consultant requesting that the documents must be resubmitted as soon as possible

C. Update during this reporting month of May 2014 a) Finalization of LARAP documents by CTC

13. Monitoring Report of the LARAP

Package No. 13 : Sp. Rukis– Tj. Kemuning

Province : Bengkulu

A. Previous Status :

• September 30, 2013, CTC received the LARAP documents from BBPJN III Palembang.

• After CTC’s review, PMU forwarded the documents to World Bank on November 13, 2013 requesting for No Objection Letter (NOL).

• Bank conducted their review and their comments were relayed to PMU thru letter on November 20, 2013.

B. Pending Issues, Concern and Actions

a) Monitoring Reports of the LARAP’s implementation have to be prepared and submitted for review and for submission to World Bank.

C. Update during this reporting month of May 2014

a) Just before the end of this reporting month, on May 30, 2014, the World Bank interpose No Objection to the revised LARAP documents for implementation.

14. Monitoring Report of the LARAP Package No. 14 : Painan - Kambang

Province : Sumatera Barat

A. Previous Status :

• CTC received the Draft Final LARAP documents from Balai II/P2JN on January 2014

• After CTC’s review of the documents, comments were transmitted in the form of a MEMO DINAS to Balai II thru the Directorate of Implementation in Region I.

B. Pending Issues, Concern and Actions

a) Corrected LARAP documents still to be submitted for final review prior to submission to World Bank.

C. Update during this reporting month of May 2014 a) No update during this period

15. Monitoring Report of the LARAP

Package No. 15 : Sibolga– Bts. Tapsel

Province : Sumatera Utara

A. Previous Status :

• CTC received the Draft Final LARAP documents on September 30,2013 from Balai. • PMU submitted the documents to World Bank on October 28, 2013 requesting

further review and acceptance.

• On October 28, 2013, World Bank returned to PMU the documents with comments to be considered in finalizing the documents for resubmission.

• On October 31, 2013, PMU requested the Director of Implementation Affairs thru Satker/PPK to address the World Bank comments

• Revised LARAP documents was resubmitted to World Bank on January 30, 2014 • World Bank approved the LARAP documents on February 6, 2014 for

implementation in acquiring Road Light of Ways and removal of obstruction.

• PPK/Satker and the Local Government started the preparation stage of land acquisition

B. Pending Issues, Concern and Actions

a) LARAP implementation under preparation stage by SATKER/PPK. C. Update during this reporting month of May 2014

16. Monitoring Report of the LARAP Package No.16 : Seblat - Ipuh

Province : Bengkulu

A. Previous Status :

• September 30, 2013, CTC received the LARAP documents from BBPJN III Palembang.

• After CTC’s review, PMU forwarded the documents to World Bank on November 13, 2013 requesting for No Objection Letter (NOL).

• Bank conducted their review and their comments were relayed to PMU thru letter on November 20, 2013.

• On November 27, 2013, the World Bank sent letter to the Director of Planning to request the Director of Implementation Affairs thru Satker/PPK to revise the LARAP documents by incorporating their comments.

• PMU resubmitted to the World Bank on January 9, 2014 the revised LARAP documents and was resubmitted again on May 21, 2014 due to some minor corrections.

B. Pending Issues, Concern and Actions

a) Monitoring Reports of the LARAP’s implementation have to be prepared and submitted for review and for submission to World Bank.

b) LARAP documents for this Package No.16 covers only land acquisition for the road link. If there are land acquisition for the bridge site, a separate LARAP documents need to be prepared.

C. Update during this reporting month of May 2014

a) Just before the end of this reporting month, on May 30, 2014, the World Bank interpose No Objection to the revised LARAP documents for implementation.

17. Monitoring Report of the LARAP

Package No.17 : Sp. Gunung Kemala– Pg. Tampak

Province : Lampung

A. Previous Status :

• Comments on LARAP documents by the World Bank was forwarded to PMU on September 16, 2013

• World Bank issued letter on September 23, 2013 to the Director of Implementation Affairs Region I thru Satker/PPK to incorporate their comments on the LARAP documents.

• CTC revised the LARAP documents taking into consideration all the Bank’s comments and PMU resubmitted the documents to the World Bank on November 6, 2013

I ..

Transaction Review

The transaction review will be conducted in the next supervision as the transactions recorded

additionally to those in the last supervision were payments of advance to selected contractors.

On May 5, 2014, the task team provided an introductory training session for BPK staff that will carry out the audit for the project. The training covered the design of the project, financial management, procurement, and governance and anti-corruption (GAC) aspects.

As required by the Loan Agreement, the project is subject to be audited by BPK. The first audit report for the project will be for FY 2012 and FY 2013. The project was exempted from FY 2012 audit

requirements due to the limited progress in the project implementation. The audit report is expected to

During the supervision mission the following additional actions/deadlines were' agreed:

• The contractor with the help of PPK and Satker will speed up the base camp and quarry licenses process with expected completion date on26 May 2014.

• Inparallel with the license process, the contractor planned to start running tests for stone crusher equipment on 19 May 2014.

• The aggregate production is expected to start on May 27, 2014 and the laying of the base course will start on June 15, 2014, with the assumption that the license could be completed on time. • Contractor base cam.p planned to be fully operating on 15June 2014.

Package#2Padang Sawab - SimpangEmpat, including the Air Gadang Bridge

The existing road width is 5.5m and will be widened to 7 m. The pavement is in bad condition with many large potholes. The works for this section are already contracted and the mobilization is ongoing with delays. An action plan to catch up with the delays was agreed between DGH and the contractor. There is a slippage from the action plan. The original delays in mobilization were mainly due to the difficulty to find a suitable base camp and get the respective license from the local government. The inspection of the base camp has not yet taken place. The quarry is also not yet licensed. The mission urged DOH's project manager to facilitate the licensing process. The contractor is waiting for the design of the slope protection from the DSC.

Package #20 LubukAlung - Sicincin

The existing road width is 6m and will be widened to 7 m. The pavement was recently overlaid and is in good condition. There is very heavy traffic on this section and an urgent need to increase capacity. Package#21LubukAlung - Kurataji

The existing road width is between 4.~m and 7m. The width changes abruptly and constitutes _asafety hazard. The pavement was also recently overlaid in most parts and is in good condition. The section also has heavy traffic.

Package#8Batas Kota Pariaman - Manggopoh

The existing road width is between 4.5m and 6m. Part of the pavement is in good condition. The rest is already aging. This section is expected to be widened to 7m.

f .. I..

Technical aspects

The mission visited the following road sections: Package #8 Batas Kota Pariaman - Manggopoh, Package #21 LubukAlung - Kurataji, Package #20 LubukAlung - Sicincin, Package #2 Padang Sawah - SimpangEmpat, including the Air Gadang Bridge, and Package #3 Manggopoh - Padang Sawah.

Annex 4: Findings of Field Visits

.Field visits to West Sumatra took place on May 6 to 9,2014. The Bank team participating in these field visits included Elisabeth Goller (Task Team Leader/Sr. Transport Specialist), Budi Permana (Procurement Analyst), Agus Sjamsudin (Road Engineer), and Francisca Melia Setiawati (Social, Land AcquisitionlResettlement Specialist). The Bank team was accompanied by representatives from DOH's central and regional offices, including Agusta Ersada Sinulingga (Head of PMU) , Dwisman Wijaya (PMU Secretary), Darwanto (Head of International Cooperation Unit of International Cooperation and Planning Bureau), Elvi (Head of Implementation Unit of Balai 2), Kamal Abdul Nasser rhead of Planning Unit of Balai 2), both team leaders and the staff of the CTC and DSC.

"_

For the utilities (PLN poles/cables, telephone cables, PDAM pipes) under widening area ; the contractor needs advice and decision from DGH on how to remove/relocate the utilities under the widening area, since based on the latest MPW Decree, the relocation works will only be paid for the

During the supervision mission the following additional actions/deadlines were agreed:

• The contractor with the help ofPPK and Satker will speed up the base camp and quarry licenses process with expected completion date on 15 May 2014.

• Inparallel with the license process, the contractor planned to start running test for stone crusher equipment on 18 May 2014.

• The aggregate production has been planned to be started on 27 May 2014 and the base course will be starting to be laid on 15 June 2014, with the assumption that the license could be completed on time.

• Contractor base camp planned to be fully operating on 31 June 2014.

• Sufficient amount of temporary traffic sign on each of the work activities locations will be completed at the end of May 2014 including signage, rubber conesand concrete barriers. • Disposals area for excavated materials was established.

• The contractor promised to complete the routine maintenance works on the current potholes locations on 6 June 2014 in which 50% progress will be achieved on 19 May 2014.

Package #3Manggopoh - Padang Sawah

The existing road width is 5.5m and will be widened to 7 m. The pavement is in bad condition with some potholes. The works for this section are already contracted and the mobilization is ongoing with delays. An action plan to catch up with the delays was agreedbetween DGH and the contractor. The contractor has largely complied with the deadlines of the action plan. The delays in mobilization were mainly due to the difficulty to find a suitable base camp and get the respective license from the local government. The inspection of the base camp has now taken place and theissuance of the license should be imminent. The quarry is already licensed, but it will not be sufficient to complete the works. The contractor is waiting for the design of the slope protection from the DSC.

The mission was informed that the contract with the DSC does not include a bridge inspector to supervise the construction of the Air Gadang Bridge. The PMU will propose a contract amendment to include a bridge engineer for supervision. The mission was also informed thatthe contractor will send the revised proposal for bridge foundation on 31 May 2014 to DGH for DGH review and approval.

For the utilities (PLN poles/cables, telephone cables, PDAMpipes) under widening area, the contractor needs adviceand decision from DGH on how to remove/relocate the utilities under the widening area, since based on the latest MPW Decree, the relocation works will only be paid for the relocation of utilities under the new expansion ROW. DGH informed the mission team that they will have an internal meeting and a coordination meeting with related stake holders (PLN, Telecom and PDAM) to solve the relocation problem for the utilities under the existing ROW soon.

• Sufficient amount of temporary traffic sign on each of the work activities locations will be completed at the end of May 2014 including signage, rubber cones and concrete barriers. • Disposals area for excavated materials will be established on 15 June 2014.

• The contractor promised to complete the routine maintenance works on the current potholes locations on 6 June 2014 in which 50% progress will be achieved on 19 May 2014.

The Government is preparing draft LARAP documents for the three packages by following the Land Acquisition and Resettlement Framework. The LARAP document of package#8Batas Kota Pariaman - Manggopoh will be submitted to the Bank by July 2014 with budget allocation for LARAP

implementation in 2014.The other two LARAP documents for package #20 and package #21 will be submitted to the Bank by October 2014 with budget allocation for LARAP implementation in 2015.

Other sections visited: Package #8Batas Kota Pariaman - Manggopoh, Package #20 LubukAlung - Sicincin and Package #21LubukAlung - Kurataji

. The degree of land acquisition for the three packages is minor. For Package # 8 and package #21 most affected assets are assets occupied on the road right of way, such as some structures (wooden kiosks, fences) and plants. If there is land affected, it is mostly in the form of front yards in small portions. Especially for package #20 there will be more land that will be affected in the Sicincin intersection. That area is also denser and busier with some permanent kiosks compared to other areas along the road. After the intersection, the degree of acquisition will be similar to the other packages, where most of the affected assets are assets occupied on the right of way. Ifthere is land that will be affected, it is also in small portion. The three packages will not create physically displaced people.

Package #3Manggopoh - Padang Sawah

There is an additional asset acquisition due to the cutting of some slopes in 30 different locations that affect to some temporary structures and plants belonging to 70 people. No landis affected since the affected additional assets were on the right of way. The compensation payment is under process..The DGH agreed to submit the monitoring report of the additional acquisition, together with the remaining action plan from the approved LAR-AP,to be submitted to the Bank by end of May.

I.,

Package #2Padang Sawah - SimpangEmpat, including the Air Gadang Bridge

The approved LARAP is under implementation. The Government is currently carrying out the payment for the remaining action plan, i.e. compensation payment for 16 project-affected people on the roadlink and five affected people at the Air Gadang Bridge. There will be additional land

acquisitions to widen the right of way from 14m to 15m in around 20 different locations for the need of drain constructions and for cutting some slopes to make 'them gentle. Some assets in minor number will possibly be affected, such as land and plants. The DGH agreed to prepare an additional LARAP document for the additional land acquisition by following the Land Acquisition and Resettlement Framework. This additional LARAP will be submitted to the Bank for review by end of May. The budget for additional land acquisition is provided for 2014 implementation.

~.'

Social aspects

poles under the existing ROWand 10 poles under the new expansion ROW need to be

removed/relocated.DGH informed the mission team that they will have an internal meeting and a coordination meeting with related stake holders (PLN, Telecom and PDAM) to solve the relocation problem for the utilities under the existing ROW soon.

9.7% 6.8%

2 0 1 0 - 2 0 1 5 2 0 1 5 -. . .

Weighted growth rate (all modes) based on the traffic composition above Trucks 1-. 12% 8% 3% 6% Buses Motorcycles Cars/Jeeps 2011-2015 Growth rates (PAD page 39)

8% 6% 3% 5% 2015-Trucks Buses I. 54.90% 24.60% 2.70% 17.80% Motorcycles Cars

Typical Traffic Composition from 2010 Master Plan for Arterial Roadsin Sumatra Island

TRAFFICEVOLUTION (2010-2017) Traffic

Year (AADT)

- Total

1 2 0 1 0 7 8 3 7

2 2 0 1 1 8 5 9 7

3 2 0 1 2 9 4 3 2

4 2 0 1 3 1 0 3 4 7

5 2 0 1 4 1 1 3 5 1

6 2 0 1 5 1 2 1 2 7

7 2 0 1 6 1 2 9 5 7

8 2 o i 7 1 3 8 4 3

Package Traffic (AADT) -Total

1 6 8 0 0

2 1 0 5 5 0

3 5 8 9 0

4 3 0 0 0

5 8 9 0 0

6 1 8 3 5 0

7 7 1 5 0

8 5 6 0 0

9 3 8 0 0

1 0 2 8 0 0

11 4 7 0 0

1 2 1 4 0 0

13 8 6 0 0

1 4 1 7 4 0 0

1 5 1 2 0 0 0 .

1 6 1 6 0 0 0

1 7 3 9 8 0

1 8 4 2 0 0

1 9 1 6 1 5 0

2 0 4 7 8 0

2 1 2 5 2 0

Total 1 6 4 5 7 0

Average 7 8 3 7

A nnex 5: C alculation of baseline and project end target for the indicator on A A D T

2010 Year