Civil Works Implementation WINRIP DOC MPR CTC MPR No.21 2014 09 2014 09 11 00224.

Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 22 negative slippage a 2 nd Show Cause meeting was held in Jakarta on September 19, 2014. It was agreed that a Test Case of the first 2 weeks shall attain at least minimum of 2.53 shall be executed by the Contractor, starting from September 22, 2014 October 6, 2014. Unless a successful results of the Test Case is attained and realistic workable action plan and catch up schedule is implemented by the Contractor, the work delays will keep on accumulating. A more detailed status of this Package is presented in ANNEX P-I Executive Summary Report. Packages No. 2 : Padang Sawah Sp. Empat Including Air Gadang Bridge During the month, there were signs of positive improvement as the Contractor was able to reduce the slippage from -6.78 the previous month to -5.33 this month. Based on the last four 4 months performance with respect to work progress, the trend shows that the negative slippage is gradually reduced as months passed by. ANNEX P-2 Executive Summary Report present a more detailed status of the Contract Package. Package No. 3 : Manggopoh Padang Sawah Although the current slippage of -9.10 this month, is still manageable at the moment, the delayed works are also leading to a downward trend from -7.26 the previous month. Reason for this delay is the minimal work accomplished on the general and drainage items and asphalt pavement which is still yet to be started. Work activities shall be closely supervised and monitored in order that the delayed works could be reduced or attain an ahead of schedule progress in the coming month. A more detailed status of the project progress are shown in ANNEX P-3 Executive Summary Report . Package No. 4 : Ipuh Bantal The current status of this contract package is similar with that of Package No. 1 wherein the negative slippage of -14.36 incurred last month further slipped down to -16.35 as of end of this reporting month. The actual progress of only 3.73 since the project started nine 9 months ago is of much concern than the slippage. Simply looking at the percentage of work accomplished, it seems that the project is not moving forward. Due to the alarming situation concerning the progress of works a Show Cause meeting to tackle the current problems was held in Bengkulu last September 17, 2014. A Test Case of 30 days period from September 18, 2014 to October 18, 2014 with 8.753 work accomplishment will be executed by the Contractor. Shown in ANNEX P-4 Executive Summary Report are the current problem and actions to be taken to attain substantial progress in order to catch-up with the schedule. Monthly Progress Report September 2014 Western I ndonesia National Roads I mprovement Project 23 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 6 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. As of this writing, DSC have not submitted any Quarterly Summary Quality Report to CTC. Letter from CTC to DSC was issued on July 23, 2014 regarding timely submittal of the Reports.

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, RKLRPL 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 UKLUPL study only. Category C project has minimal effect on the people or environment and an environmental analysis is not required. SPPL are used to handle any minor problem which may arise. All the twenty one 21 packages require environmental impact investigations. There are a total of fourty one 41 studies required, twenty 20 for environmental impact investigations and twenty one 21 for social studies. The twenty 20 environmental studies need the approval of the Environmental Agency BLH with five 5 of the studies AMDALEIA to be approved by World Bank WB. While the twenty one 21 social studies SLARAP and LARAP require the approval of World Bank prior to implementation.