DMS Statistic Management Information System

Western I ndonesia National Roads I mprovement Project 6 - 16

6.6 Quality Assurance

During the period October 2016 the Quality Assurance Engineer conducted final review of TFAC Comformance Reports, prepared site visit reports for Packages 11, 13 and 16. Appendix D shows the activities of the Quality Assurance Engineer during this period.

6.7 Project Risks and Mitigation Measures

6.7.1 Risks Related to Delays

Since the detailed engineering design DED is under responsibility of the Design and Supervision Consultant DSC, delay on DSC establishment affected the procurement of AWP-2 and AWP-3 sub-projects. The DED of several subprojects of WP-2 and WP-3 were prepared and completed by respective P2JN. The CTC has then been instructed by DGH to review the DEDs of seven packages completed by the P2JNs package 5, 6, 11, 13, 15, 17 and 19.

6.7.2 Financial Risks

The following factors will be monitored during implementation of the loan project. • Loan Amount • Actual Tender Prices • Price Adjustments • Contract Amendments Additive or Deductive Variations • Currency Fluctuation • Current Estimated Situation No risk was detected until preparation of this report, however CTC prepared revised cost estimates in anticipation of future cost claims to cover contract price escalations and variation orders. A revised factor from 10 have been reduced to 5 for both additional cost components is applied on the original cost.

6.7.3 Risks Related to Quality

The quality of work is inherently tied to the competence of the Contractors and the diligence of the Supervision Teams. The competence of contractors shall be considered at the time of bid evaluation and prior to the award of any contract. The quality of supervision however is influenced by the following factors: • Ensuring that supervision staff levels are fully manned with competent, honest, qualified and experienced personnel. • The provision of properly equipped laboratories with properly trained operators for each package. Package supervision comes under the responsibilities of the immediate supervision teams and the relevant DSC and the Quality Assurance Engineer from CTC. Western I ndonesia National Roads I mprovement Project 6 - 17

6.8 Training to Support Project Implementation

Since the Training Specialist and his Assistant demobilized at the end of September, CTC still to continue conducting or delivering training for different disciplines. During this month there were 2 two training for different disciplines : 1. Third Party Monitoring Training was held on October 12 -14, 2016 in Padang City, conducted by Community Development Specialist. 2. Preparation environmental management and monitoring workplan RKPPL Trainging No.8 including training on Management of road works environmental impact during construction phase, was held on October 25 until 28, 2016 in Padang City, conducted by Environmental Specialist and Road Safety Engineer. Monthly Progress Report November 2016 Western I ndonesia National Roads I mprovement Project 7 - 1 7 ISSUES and RECOMMENDATIONS

7.1 Current Situation

The main issues during this month of November 2016 are as follows: a The big negative slippage behind schedule of two 2 on-going construction sub- projects, Packages 13 and 15. b Delayed issuance of Notice to proceed will affect the twenty one 21 months time of completion of Contract Package 16. The completion date will keep on stretching farther beyond the expiry date of the loan agreement on December 31, 2017. c LARAP implementation for Packages 05, 12, 13, 14, 15, and 17 cannot be completed in FY 2016 and splitzing program for land acquisition in the provinces of Lampung, Bengkulu, and North Sumatra is still not budgeted d Amendment to the extension of the implementation time and increase the contract value for Package 05 should follow the direction of WB in accordance with the letter ref.WINRIP 364 dated November 23, 2016 e The contract agreement for Package 03 Manggopoh-Padang sawah has not been amended related to the calculation of the final quantity of the works. f Land acquisition of Package 15 Sibolga-Batas Tapsel obstacles along the 4 km for the people in the village of Pinang Baru - Pinangsori sub district not willing acquisited g Changes in the design of pavement widening from flexible to rigid pavement in Package 15 is not supported by the consent of the DGH. h Commencement of work of the Technical Assistance for Development of Slope Stabilization, Design Management estimated April 2017 with a 11 month time for services going beyond the loan closing date i If the cancellation of Package 10 Sp.Empat-Sp.Air Balam impact on the reduction of loan allocation for Civil Works, then, civil works loan allocation is not sufficient to finance 18 civil works packages including variation orders for Package 05 and 17 and the Price Adjustment for 18 packages of civil works. j There is a road damage due to water scouring on the side ditch Package 03 Manggopoh-Padang Sawah k Roads damaged by settlement land slide in the Sta 6+300 and Sta 6+400 Package 01 Krui-Biha have not been repaired l Production of crushed stone tends to form a flaky and elongated beyond the requirements of 10 allowed in the specification.

7.2 Actions Required

a Two 2 of the on-going construction packages are on critical situation due to big negative progress slippages which may affect the timely completion of the projects. Design Supervision Consultant DSC shall closely monitor, preferably on a weekly basis. Contractors shall prepare a Catch-Up Schedule on how to complete the remaining works within the contract time. High level management meeting have been conducted on November 21, 2016 in the DGH office. b Currently, the contractor is doing staking out and field engineering to determine the condition of the existing road. Once the field engineering is completed, the contractor will submit alternative proposals for completion of the project.