Draw Downs and Future Costs Disbursement Quality Assurance

Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 42 a. File Storage Server, used to stored all files of reports and other documents. Please check the URL address http:storage.winrip-ibrd.com . b. Letter Database System, used to record all information of incoming and outgoing letter. c. Document Library System, used to record all information of hard copy documents then store it into library shelves. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 43 6 PROJECT PERFORMANCE

6.1 World Bank and GOI Compliance

6.1.1 World Bank Missions

No World Bank implementation mission this period. 6.1.2 Agreed Key Actions and Mission Plans During Recent World Bank Visit A project review meeting took place on August 25 and 26, 2014 in the Bina Marga office. The meeting was chaired by Mr. Agusta Sinulingga, the head of PMU WINRIP, and was attended by some representatives of PMU, CTC s Team, Team Leader of DSC and the Bank s Team. It was understood that Bina Marga will propose another two packages to replace package 9 and package 18. The candidates of the replacement are in North Sumatera Province. CTC formally submitted the Technical Analysis Report of Proposed roadlines. A list of the key actions to be monitored during the next progress review meeting is listed below. No. Action By Whom Status and Target dates 1 Project reviews DGH and Bank • September 2014 the DSC team leader of DSC will participate in all future review meetings via skype 2 ToR for Capacity Enhancement on Disaster Risk Mitigation PMU and CTC • TLKJ sent a draft on August 25, 2014 based on a discussion with the WB on July 23, 2014. • WB to meet with TLKJ in the beginning of September to finalize jointly the draft. 3 Complete and send to the Bank UKL UPL for package 4 CTC • Will be presented to BLH environmental agency in the first week of Sept, 2014. • Will be submitted to Bank on September 2014 after BLH approves it. 4 Submit LARAP documents for packages 7, 8, 10 and 12 for Bank review DGH • 8, 10 - NOL given on August 12, 2014. • 7, 12 will be submitted in end of August. 5 Submit to the Bank the LARAP monitoring report for package 2 PMU Will be submitted in Sept. 2014. 6 Submit to the Bank the LARAP monitoring reports for packages 6, 11 and 19 PMU Will be submitted in Sept. 2014. 7 Submit to the Bank the LARAP monitoring report for packages 13 and 15 PMU Will be submitted in November 2014. 8 Submit to the Bank the LARAP for packages 14, 20 and 21 PMU Will be submitted in October 2014. 9 Submit to the Bank the LARAP monitoring report for package 17 PMU Will be submitted on September 2014. 10 Finalize NCB standard bidding document SBD for full e- procurement MPW Bintek, PMU, Pusdata, and Bapekon and Bank • On July 23, 2014, WB sent a NOL subject to the incorporation of the Bank s comments among others, a request to eliminate the requirements for bidders to indicate the Tax Payer Registry Number Nomor Pokok Wajib Pajak and to increase the performance guarantee if the bid price is less than 80 of Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 44 the cost estimate. • The PMU needs the prior authorization of Bapekon Procurement Advisory Agency of Public Work. The PMU promised to approach Bapekon in the last week of August 2014. • The Bank s team asked to participate in a meeting on the topic with Bapekon and the PMU in the first week of September. 11 Submit BER for Package 17 PMU • Bid opening took place on August 15, 2014. Six bidders submitted their bids. • The Bank asks PMU to submit BER maximum 4 weeks after bid opening. 12 Submit Bid opening report to the Bank for package 5 PMU • NOL to the bidding document was issued on July 22, 2014. • The deadline for bid submission is Sept 22, 2014. • The Bank asked for a copy of the bid document for its archives. 13 Submit Bid opening report to the Bank for packages 11 and 13 PMU • NOL to the bidding document of the two packages issued on August 6, 2014. • DGH received a complained related to the PQ. • The Procurement committee did not receive any further complaints. The invitation to bid was issued August 14, 2014 and the pre bid meeting is scheduled to take place on Sept 8, 2014. • The PMU will send to the Bank by September 5, 2114 a copy of bid documents and a statement that DGH has not received any further complainant, so the Bank can close the complaint in our system. 14 Submit the bidding document of package 15 ICB to the Bank for NOL PMU • Bank sent informal comments to draft bidding document on August 20, 2014. • PMU and Bank will discuss on the use of e- procurement before submitting final SBD. The discussion is planned to take place in the first week of September, 2014. 15 The auditing report of the 2012 and 2013 financial statements PMU and Bank • Has been sent to Bank on June 30, 2014. • Bank is reviewing the report and will inform the PMU about the results in the first week of September 2014. 16 Submit to the Bank the revised PMM, including the web application PMU • The revised PMM will be submitted on September 15, 2014. 17 Finalize ToR for technical and financial audit and submit proposal to DFAT for funding DGH team leader for EINRIP and Bank • The Bank will finalize the ToR in the end of October 2014. • DGH to send a request letter to DFAT in the first week of September 2014 to mobilize EINRIP TFAC consultants for the four ongoing packages. 18 Make sure that adequate budgets for LARAP implementation are allocated in 2015 for packages all packages, especially packages 14, 16, 20 DGH • DGH will checked to Local Government of West Sumatera and Balai III for 16. • The PMU will inform the Bank in the first week of September. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 45 and 21 19 LARAPs for packages 2 Padang Sawah Simpang Empat DGH • NOL for additional LARAP issued on Submitted to Bank on July 21, 2014. • On August 18, 204 Bank sent a reminder to the PMU to complete the LARAP implementation process and submit documentary evidence. • The TL of DSC reported a change of design of the slope protection. Bank will follow up on the impact on LARAP. 20 LARAPs for packages 3 Manggopoh - Padang Sawah PMU • On August 18, 2014 the Bank sent a reminder letter to PMU to complete LARAP implementation process and submit documentary evidence. 21 Engineering design and reviewapproval of slope protection design completion and the nomination of the chief inspector for package 4 DSC • The PMU will communicate with DSC and inform the Bank in the first week of September, 2014. 22 PMU to submit draft DED and EE of package 7, 8, 10, and 12 including the new technical standards, which will considerable increase the cost of these packages. PMU • The PMU will send to the WB the designs together with the new standard for road design in the first week of September. 23 DSC additional staffs PMU and DSC • The TL of DSC informed the Bank team that DSC is finalizing the contract addendum 1 for additional staff, asking for one highway inspector, one surveyor, and one laboratory technician for each work package and, for the central office, one highway engineer, one bridge engineer, one quality engineer, one social and environmental specialist, and one QAT operator. • To expedite the process, the Bank team suggested that PMU and DSC to submit a request letter for some staffs who are urgently needed e.g. bridge engineer package 2, supervision engineer, rather than waiting for the complete addendum. • DSC will submit the request to the PMU in the second week of September. 24 Revert the very slow implementation progress under Package 01: Biha - Krui Contractor: PT. Jaya Kontruksi Mangala P.T Length: 25.06 Km Contract Amount IDR 134,909,211,000 Commencement of Work: 08 January 2014 DSCDGH • The delays are due mainly to the lack of approval of the field engineering by DSC and the Balai, shortages of labor, limited financial resources and weak supervision a new team leader for the supervision took over in July. • DSC is currently revising the field engineering and will approve it in the last week of August. • The Bank asked DSCDGH to formally warn the contractor on the consequences of the delay and request a revised work program and an action plan to catch up with the delays. 25 Revert the very slow implementation progress under Package 04: DSCDGH • Some of the reason for the delays may be due to the lack of approval of the field engineering by DSC and the Balai and weak Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 46 Ipuh - Bantal Contractor: PT. Waskita Karya PT. Jaya Length: 42.46 Km Contract Amount IDR 186,936,750,000 Commencement of Work: 10 January 2014 supervision. • DSC is currently revising the field engineering and will approve it in the last week of August. • The DSC team leader will visit this work in the beginning of September and will inform the WB about the reasons for the delay. • The Bank asked DSCDGH to formally warn the contractor on the consequences of the delay and request a revised work program and an action plan to catch up with the delays. 26 Catch up with some of the initial delays under packages 02 and 03 DSCDGH • Delays are due to initial licensing issues for the base camp and the quarry, lack of approval of the field engineering by DSC and the Balai and weak supervision. • DSC is currently revising the field engineering and will approve it in the last week of August. • DSC will discuss with the contractors ways to catch up with the delays. 6.1.3 Performance Indicators 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 objectives. These KPIs are provided in the World Bank s Project Appraisal Document PAD, together with baseline data and targets. The annual targets for KPIs that are indicated in the Project Appraisal Document are based on the initial Project Implementation Schedule as shown in Appendix I. The CTC is concentrating on the establishment of precise definitions, calculation methods and data collection procedures to monitor the KPIs.

6.2 Implementation Support Components

6.2.1 Core Team Consultant CTC

The CTC is responsible to provide support to the PMU and DGH in the management of the Project, based in Jakarta. The CTC tasks include financial and progress monitoring and reporting, information management and dissemination, quality assurance and performance review for the Design and Supervision Consultants DSC, 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 CTC contract No. 06-20CTCTALN80431112 was signed on 5 November 2012 by both DGH and a Joint Venture of PT. Perentjana Djaja, Yongma Engineering Co.Ltd., and PT. Epadascon Permata Engineering Consultant. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 47 The main CTC activities during August 2014 are as follows: • Continue assistance to PMU as and when required. • Prepare and submit Monthly Progress Report for August 2014 • Finalization of International Competitive Bidding documents for Package No. 11, 5 and 13 • Monitoring LARAP implementation • Meeting with World Bank and PMU to update Agreed Key Actions and Mission Plans • Monitoring of implementation of environmental mitigation measures • Monitoring of financial status and disbursements • Conducted technical design review of DED safety audit • Prepared issued letters to PMU and DSC • Conducted weekly CTC coordination meetings • Prepared and Finalized draft PMM • Prepared PMM dissemination • Meeting with Monitoring Team of WINRIP Steering Committee. • Attended Pre-Bid Conference for Package No. 5 and participate in the Site Visit.

6.2.2 Design and Supervision Consultant DSC

The Design and Supervision Consultant DSC will be responsible for design of WP 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 contract was negotiated in Balai Besar Pelaksanaan Jalan Nasional II Balai-II of DGH. The negotiation result and draft contract have been sent to WB on 25 March 2013 for review and approval. The Bank issued no objection letter on the negotiation results and draft contract with letter dated 19 April 2013. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 48

6.2.3 Road Sector Institutional Development

This component consists of technical assistance for capacity building for the new environmentrisk mitigation and road safety unit to enhance its capacity for disaster risk assessment and planning, risk mapping of land-slides, coastal erosion, earthquake and floods, analysis of alternative road designs for road segments passing through critical environmental assets and vulnerable areas. It is planned so far that there will be three 3 consultant services for: • Capacity Building of Disaster Risks Reduction • Capacity Building for Environmental Management • Capacity Building for Road Safety Draft of the respective Terms of Reference has been being finalized by the Sub-Directorate of Environment and Road Safety outlining the proposed scope activities for the component. During preparation of this Report, the procurement for consultants under this component has not yet been started. Preparation for the procurement would be coordinated by the PMU, the DGH Procurement Team and the CTC.

6.3 TRAINING TO SUPPORT PROJECT IMPLEMENTATION

The work during this reporting month is actually inseparable continuation of what were prepared and done during previous month July 2014 summarized below: • Continuing to assist PMU in the actions of perfecting the PMM document to be ready for socializationdissemination. • Assisting the PMU in preparing and carrying out the Updated PMM Socialization Workshop, in the hope of being conducted during the month of August 2014 after being postponed from the last week of June 2014 in Batam as previously scheduled. It should be noted that the first half of this reporting month 1 st -14 th August 2014, based on the Amendment No. 2 to Contract NO. 06-20CTCTALN 80431112, is included in one month intermittent period that has been made use by both training staff of CTC. Both of them have intermitted from 15 th July 2014 until 14 th August 2014. Therefore, actually this reporting month covers only the activities carried out during the second half of August 15 th 31 st August 2014. The work during the second-half of this reporting month was then focused on the following activities: Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 49

6.3.1 Updating the Project Management Manual PMM

• Continuing to assist the actions of perfecting some chapters of PMM based on some additional suggestions from the respective PMU Officials and resource persons, that still be required for the document to be ready for socializationdissemination. Apparently, especially chapter 7 of the PMM: Contract Implementation, still requires some actions of perfecting, completing, finishing as well as refinement of thought and euphemism.. Some discussions are still going to be needed. • While awaiting the PMU would determine a certain daydate for carrying out the PMM Socialization Workshop, around one week before the end of the intermittent period, the training staff was informed that the PMU has scheduled the implementation of PMM Socialization on 20 th 21 st August 2014. • Therefore, the Training Specialist then started working on 12 August, three days before it should be, continuing to assist in preparing the implementation of PMM Socialization Workshop booking the hotel, identifying the participants, preparing letter of invitation, reproducing the workshop materials, preparing agenda, etc. However, the schedule of the workshop implementation was then, unfortunately, finally postponed to 10 th - 11 th September 2014, shifting the other training course that has been scheduled on 10 th -11 th to November since the next month October would be the next intermittent period . • Assisting in preparing the implementation of Socialization Workshop of PMM, that has been scheduled to be implemented firstly on 20 22 August 2014, then being postponed to 28-29 August, 3-4 September, and finally 10-11 September 2014. The venue has been booked. It is the Premier Basko Hotel, Jl. Prof. Dr. Hamka No. 2A Padang 25132. • Assisting in preparing the implementation of Socialization Workshop of PMM, that has been scheduled to be implemented firstly on 20 22 August 2014, then being postponed to 28-29 August, 3-4 September, and finally 10-11 September 2014. The venue has been booked. It is the Premier Basko Hotel, Jl. Prof. Dr. Hamka No. 2A Padang 25132.

6.3.2 Annual Training Program

 Preparation of Financial Management Reporting training for 4 packages of AWP- 1 has been planed to be delivered in September after the PMM had been disseminate on this reporting month.  Because of postponement of the PMM dissemination to 10 th -11 th September, such course would be implemented after the intermission early November 2014. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 50

6.3.3 Progress

The preparation of the implementation of Updated PMM Socialization Workshop has been done. The venue has been booked, i.e:: the Premier Basko Hotel Jln. Prof. Dr. Hamka No. 2A Padang 25132. Letters of invitation have been distributed, and reconfirmed. Materials to be discussed have been reproduced. Visual Aids materials have been prepared.

6.3.4 Activities Plan for next month September 2014

• Continuing to assist PMU in the actions of perfecting the PMM document to be ready for socializationdissemination. • Assisting the PMU in carrying out the Updated PMM Socialization Workshop, that has been re-scheduled to be conducted on 10 th 11 th in Padang. • Reorting and following up the result of PMM Socialization Workshop as necessary.

6.4 Anti Corruption Issues

6.4.1 Anti-Corruption Action Plan ACAP

The main duties of the Community Development Officer are implemented of Anti-Corruption Measures, and Monitoring their Effectiveness. Provide assistance as required with the establishment of anti-corruption measures necessary to support the project, and monitor and report their effectiveness based on the Anti-Corruption Action Plan ACAP agreed between the World Bank and the DGH. The following tasks particularly need to establish procedures to be undertaken:  Selection of Community Representative Observers CROs of civil society groups to attend the procurements process on key procurement steps including pre-bid meeting and site visit, bids submission and bids opening, and the announcement of the bid winner. These CROs will be invited from local universities or other selected independent institutions, and will sign the attendance list for the procurementselection process.  Establishment of a Third Party Monitoring TPM mechanism, whereby the media and civil society groups can become involved in monitoring the progress of the project. This mechanism will include regular sharing of information with the media.  Establishment and Management of a Complaints Handling Mechanism CHM, which includes maintaining project complaint log and filing to monitor status of follow-up of each complaint. This mechanism will include provision for follow up investigations of substantial complaints by the Inspectorate General of Ministry of Public Works or third party audit to ensure independence and reliability of the system. The CTC assignment concerns the monitoring of the aspects of Anti-Corruption Action Plan ACAP implementation and where required act pro- active in resolving issues when such a matter arises. The Community Development specialist has Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 51 a major role in monitoring performance and assists PMU in the set-up and follow-through of the Complaints Handling Unit CHU for the ACAP related incidents  Enhanced Disclosure Provisions and Transparency, Ministry of Public Work MPW will provide necessary information in the Project Implementation Plan PIP, Project Management manual PMM on their website, and in the bidding documents, such as contact point for complaint mail and e-mail address, phone, fax, text message. The contact will also include the Bank s Fraud and Corruption Hotline. MPW will hold Annual Accountability Meetings to enhance accountability and project information sharing with civil society. The PMM will provide guidelines on disclosure of information related to the project. MPW official website will display critical information on WINRIP to enhance both internal and external monitoring of the project

6.4.2 Community Representative Observers CRO

The Anti-Corruption Action Plan ACAP activities on Community Representative Observers CROs, was adjusted and supported the progress of procurement activities. The activity on the Community Representative Observers CROs during August 2014 was carried out the selection of CRO for package 05: Simpang Rampa Poriaha, North Sumatera Province on August 20, 2014. The CRO selection was held in office of National Roads Implementation Agency Balai Besar Pelaksanaan Jalan Nasional Regional I Medan, Jalan Sakti Lubis No. 1, Medan. The Selection meeting was chaired by the PPK 12 Sibolga Cs - PIUs of National Roads Implementation Satuan Kerja Pelaksanaan Jalan Nasional Region II North Sumatera Province Ir. Siduhu Aro Dakhi, on behalf of Head of BBPJN I Medan. This meeting attended by participants as follow: 1. National Roads Implementation Agency Balai Besar Pelaksanaan Jalan Nasional Regional I Medan 2. Pokja Pengadaan Procurement Committee of North Sumatera Province ; 3. Representatives of the PIUs of National Road Implementation Region II North Sumater province, 4. Representatives of the PPK 12 Sibolga Cs, North Sumatera province, 5. Community Development Officer of CTC WINRIP 6. The CROs candidates come from State University of North Sumatera Universitas Sumatera Utara USU and Education Institute of Engineering Learning and Training Center ELTC Medan. The results and names of CROs selected for package 05: Simpang Rampa Poriaha, North Sumatera province as follows : 1. Mr. Medis Sejahtera Surbakti ST, MT, as the Main CRO, from State University of North Sumatera Universitas Sumatera Utara USU , and 2. Mr. Josep Medika Ginting, ST, as the Substitute CRO, from Education Institute of Engineering Learning and Training Center ELTC Medan . After the selection of CRO, continued by the preparatory training for the elected CRO. The training was carried out by Community Development Officer of CTC WINRIP as the Facilitator. The Subject Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 52 matters of the training were as follow: - Overview of the WINRIP project. - An-Corruption Action Plan ACAP in the Implementation of WINRIP - Scope of Duties of the CROs on the Procurement Process. - CRO s Report and financing. The activities progress of Community Representative Observers CROs from January 2013 until August 2014 , are shown in Appendix H1.

6.4.3 Third Party Monitoring TPM

The ACAP activities during August 2014 were continued for provision Decree of the Director of Planning, Directorate General of Highways concerning Establishment of Third Party Monitoring for four packages 01, 02, 03 and 04 of AWP-1 WINRIP, and Preparing Letter of Employment Agreement between the TPM of four packages of AWP-1 with CTC WINRIP on behalf of PMU WINRIP. The Progress of Third Party Monitoring TPM Activities from April 2013 up to August 2014 and the works plan are shown in Appendix H2.

6.4.4 Complaint Handling System CHS

The Community Development Officer with collaboration with MIS Specialist has developed a software application of Complaint Handling System CHS in integrated to website of WINRIP http:www.winrip-ibrd.com. In the implementation of Complaint Handling System CHS essentially there are five 5 main components as follows: • Data Entry. • Complaint Registration. • Complaint Assessment. • Field Clarification and Analysis. • Problem Solving and taking the Decision The final draft of Complaint Handling System the framework of the complaint procedures on the web site of WINRIP and provided ACAP inputting data in the web site is ready to be operated. However these applications still continue to be refined by considering input from various parties. The CHS team has been monitored and noted the public complaints via SiPP website and WINRIP website, but until now have no complaint about the WINRIP programs. The CHS Activities is shown in Appendix H3. 6.4.5. Publication Disclosures Publication and disclosure is an attempt to increase transparency of information to the public, so Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 53 the public can easily access to information about the project WINRIP. Some components of publication and disclosures are as follows: a announcing the information about the project through dissemination activities and provision the leaflets, b installation of the project information boards, c the provision of space project information booth, d providing important information that can only be accessed by public with submitted an officially applications to the authorities, and e the provision of information in the website which can be accessed via the internet. Information provision dissemination about the Public Disclosures and Transparencies has been done by the preparatory training of TPM for Packages 01, 02, 03 and 04, and will be done by the WINRIP regularly training likes: Project Management Manual PMM, Procurement training, Interim Financial Report IFR and other relevant trainings. Another way is to inputting the informationdata or to upload the articles into the website of WINRIP. The publication of project information as stated above are the responsibility of PPK, likes provision leaflets, project information boards, project information booth, and publication of CTC website as well as application of Complaint Handling System. Until now there is no information if PPK is doing media publication or providing information such as mentioned above, because there had never been implemented monitoring of it.Until now still have no information if the PPK has to be provided or to do this publication The Works Activities for Publication Disclosure is shown in Appendix H4.

6.4.6. Action Plan for Next Months

The Activities plan for future months September of 2014, in order of priority are as follows: 1. Provision Decree of the Director of Planning, Directorate General of Highways concerning Establishment of Community Representative Observer CROs for packages 17: Simpang Gungung Kemala Pugung Tampak, that has been elected on July 17, 2014, and for package 05: Simpang Rampa - Poriaha . 2. The Decree of the Director of Planning, Directorate General of Highways concerning Establishment of Third Party Monitoring for four packages 01, 02, 03 and 04 of AWP-1 WINRIP has been prepared and still awaiting for signing by Director of Planning as Head of PMU . 3. The Letter of Employment Agreement between the TPM of four packages of AWP-1 with CTC WINRIP on behalf of PMU WINRIP has been prepared and as soon as posible when the Decree of Establishment of Third Party Monitoring for four packages 01, 02, 03 and 04 of AWP-1 WINRIP has signing, this Employment Agreement will be singned too. 4. Inputting or upload the data, documents and reports of ACAP into the website. 5. Disseminate of Anti-Corruption Action Plan to all stakeholders who associated with the WINRIP project through the PMM training, this activity is planed for the middle of September 2014. 6. Selection of CROs for package 11: Bantal Mukomuko, package 13: Simpang Rukis Tanjung Kemuning, is planed in early September before pre-bid meeting. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 54

6.5 Road Safety Audit

6.5.1 Activities During This Month August 2014

There are three 3 activities during this month, i.e: 1. Site visit to Seblat Ipuh Package No. 16 for Road Safety Audit at Detailed Engineering Design Stage on August 13th 15th, 2014. 2. Preparation of Seblat Ipuh Package No. 16 Road Safety Audit Report, 3. Checking of Final Engineering Design of Bts. Kota Pariaman Manggopoh Package 8 and Sp. Empat Sp. Air Balam Package 10 for Road Safety according to TLKJ Recommendations at the Road Safety Audit Report Detailed Engineering Design Stage. 6.5.2 Current status of the project for technical field as of August 2014. The Details of Progress of Technical Design Review and Road Safety Audit as of the end of August 2014 is as shown in the tabulated format and included as Appendix B. Technical Design Review Road Safety Audit Report Status Group Pack No. Name of Sub-project Technical Design Review Road Safety Audit Road Safety Audit Report by BINTEK Submitted to PMU Post -Review Site Visting Full -Review Technical Report AWP -2 5 Sp.Rampa Poriaha Link No.015.xx completed completed completed completed - Final Technical Report is resubmitted on 17th September 2013 6 PS.Pedati - Kerkap Link No.010.0 completed completed completed completed - Final Technical Report is submitted on 17th September 2013 7 Indrapura Tapan Link No.019.0 - By DSC - By DSC - By DSC Technical Advisory Reviewed and prepared by Sub Directorate of EA RS aFinal Technical Advisory is submitted on 5th February 2013 bFinal RSA Report is submitted on May 2014 8 Bts.Pariaman Manggopoh Link No.024.0 - By DSC - By DSC - By DSC Technical Advisory Reviewed and prepared by Sub Directorate of EA RS aFinal Technical Advisory is submitted on 5th February 2013 bFinal RSA Report is submitted on May 2014 9 Rantau Tijang Kota Agung Link No.026.1 By DSC By DSC By DSC - - - 10 Sp.Empat Sp. Air Balam Link No.034.1 - By DSC - By DSC - By DSC Technical Advisory Reviewed and prepared by Sub Directorate of EA RS aFinal Technical Advisory is submitted on 5th February 2013 b Final RSA Report is submitted on May 2014 11 Bantal - Mukomuko Link No.015.2 completed completed completed completed - Final Technical Report is resubmitted on 16th August 2013 12 Kambang Indrapura Link No.017.2 - By DSC - By DSC - By DSC Technical Advisory Reviewed and prepared by Sub Directorate of EA RS aFinal Technical Advisory is submitted on 5th February 2013 bFinal RSA Report is submitted on May 2014 13 SP.Rukis - TJ.Kemuning Link No.006.0 completed completed completed completed - Final Technical Report is resubmitted on 16th August 2013 AWP -3 14 Painan Kambang Link No.017.1 By DSC By DSC By DSC Technical Advisory - Final Technical Advisory is submitted on 28 May 2014 15 Sibolga Bts TapSel Link No.016.1 completed completed completed completed - Final Technical Report is submitted on 23th September 2013 16 Seblat Ipuh Link No.010.0 - Completed - Completed - Completed Technical Advisory - Final Technical Advisory is submitted on 27th March 2014 17 Sp.Gng Kemala Pg.Tampak Link No.061.1 PPC-TA WINRIP PPC-TA WINRIP PPC-TA WINRIP - - - Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 55 Group Pack No. Name of Sub-project Technical Design Review Road Safety Audit Road Safety Audit Report by BINTEK Submitted to PMU Post -Review Site Visting Full -Review Technical Report 18 Mukomuko Bts.Sumbar Link No.015.3 By DSC By DSC By DSC - - - 19 Lais - Bintuan Link No.009.1 completed completed completed completed - Final Technical Report is submitted on 17th September 2013 20 Lubuk Alung Sicincin Link No.009.1 By DSC By DSC By DSC Technical Advisory - Final Technical Advisory is submitted on 23 May 2014 21 Lubuk Alung Kuraitaji Link No.009.1 By DSC By DSC By DSC Technical Advisory - Final Technical Advisory is submitted on 23 May 2014

6.6 Environmental and Social Impact Issues

6.6.1 Package No.01: Krui Biha Social Issues:

 Existing mosque is partially traversed due widening of the existing travelledway.  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.  Land acquisition is required on the other side of the road centerline alignment if the new action plan push through. Environmental Issues:  CTC have reviewed and gave comments on RKPPL that was submitted by the Contractor. Contractor still to resubmitted the revised RKPPL.  CTC to check if the DSC and Contractor implement the requirements and recommendations in the AMDAL on the site and incorporated in the design. CTC is waiting for the submission of AMDAL drawings recommendations from DSCContractors.

6.6.2 Package No.02: Padang Sawah Simpang Empat

Social Issues:  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. Twenty four 24 new affected persons included in the new LARAP are not yet completed by the Local Government.  CTC completed the review of the RKPPL and sent back to Contractor thru email.  Monitoring Report concerning the payments to the remaining affected peoples still to be prepared for submission to World Bank. Environmental Issues:  CTC completed the review of the RKPPL and sent back to Contract for finalization.  CTC need to check the recommendation UKLUPL bridge in the field for clearance of environmental issues which have to be integrated in to the design. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 56

6.6.3 Package No.03: Manggopoh Padang Sawah

Social Issues:  Documents for compensation payments for the remaining three 3 affected persons processed and resolve by the Local Government.  Monitoring Report concerning compensation payments to the three 3 remaining affected persons still to be prepared for submission to World Bank. Environmental Issues:  CTC completed the review of the RKPPL and sent back to Contractor thru email for finalization.

6.6.4 Package No.04: Ipuh Bantal

Social Issues:  No more issue and concern Environmental Issues:  CTC to assist the BALAI locally hired consultant to decide the sampling locations and environmental mitigation of project. The locally hired consultant have already conducted sampling and conducted presentation of UKLUPL in PJN BALAI III in Bengkulu on August 27, 2014. UKL and UPL reports are under preparation by the Consultant for submission.

6.6.5 Package No.05: Sp. Rampa Poriaha

Social Issues:  PMUCTC is awaiting the LARAP implementation Report Environmental Issues:  CTC need to check the recommendations of UKLUPL in the field for clearance of environmental issues which will be integrated in to the design.

6.6.6 Package No.06: Psr.Pedati Kerkap

Social Issues:  Monitoring Reports of the LARAP s implementation have to be prepared and submitted for review and for submission to World Bank. Environmental Issues:  CTC need to check the recommendations of UKLUPL in the field for clearance of environmental issues which will be integrated in to the design.

6.6.7 Package No.07: Indrapura Tapan

Social Issues:  Corrected LARAP documents on-going final review by CTC prior to submission to World Bank. Environmental Issues:  CTC need to check the recommendation of AMDAL in the field for clearance of environmental Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 57 issues which will be integrated in to the design.  World Bank issued No Objection Letter NOL on August 8, 2014 for the AMDAL documents that were prepared by Subdit TLKJAMDAL local consultant hired by BALAI.

6.6.8 Package No.08: Bts Kota Pariaman Manggopoh

Social Issues:  No Objection Letter NOL was issued on August 12, 2014 by World Bank on the LARAP.  LARAP is under implementation process by the Local Government. Environmental Issues:  CTC need to check the recommendations of AMDAL in the field for clearance of environmental issues which will be integrated in to the design.

6.6.9 Package No.09: Rantau Tijang Kota Agung

Social Issues:  Still no issues and concerns. Environmental Issues:  CTC need to check the recommendations of UKLUPL in the field for clearance of environmental issues which will be integrated in to the design.

6.6.10 Package No.10: Sp. Empat Air Balam Social Issues:

 No Objection Letter NOL was issued on August 12, 2014 on the LARAP documents.  LARAP is under implementation process by the Local Government. Environmental Issues:  CTC need to check the recommendations of AMDAL in the field for clearance of environmental issues which will be integrated in to the design.

6.6.11 Package No.11: Bantal - Mukomuko Social Issues:

 Monitoring Reports of the LARAP s implementation have to be prepared and submitted for review and for submission to World Bank. Environmental Issues:  CTC need to check the recommendations of AMDAL in the field for clearance of environmental issues which will be integrated in to the design. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 58

6.6.12 Package No12: Kambang Indrapura Social Issues:

 LARAP documents are under final review by CTC prior to submission to World Bank for NOL Environmental Issues:  CTC need tocheck the recommendations of AMDAL in the field for clearance of environmental issues which integrated in to the design.  No Objection Letter NOL for EIA AMDAL was issued by World Bank on August 8, 2014.

6.6.13 Package No.13: Sp. Rukis Tj. Kemuning Social Issues:

 Monitoring Reports of the LARAP s implementation have to be prepared and submitted for review and for submission to World Bank. Environmental Issues:  CTC need to check the recommendations of UKLUPL in the field for clearance of environmental issues which will be integrated in to the design.

6.6.14 Package No.14: Painan Kambang Social Issues:

 Corrected LARAP documents still to be submitted to World Bank for NOL. Environmental Issues:  CTC need to check the recommendations of AMDAL in the field for clearance of environmental issues which will be integrated in to the design.  No Objection Letter NOL for EIA AMDAL was issued by World Bank on August 8, 2014.

6.6.15 Package No.15: Sibolga Bts. Tapsel Social Issues:

 LARAP implementation Monitoring Report from SatkerPPK still to be submitted to PMUCTC for review and for submission to World Bank. Environmental Issues:  CTC need to check the recommendations of UKLUPL in the field for clearance of environmental issues which will be integrated in to the design.

6.6.16 Package No.16: Sebelat Ipuh Social Issues:

 Monitoring Reports of the LARAP s implementation have to be prepared and submitted for review and for submission to World Bank.  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 to need be prepared. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 59 Environmental Issues:  CTC need to check the recommendations of AMDAL in the field for clearance of environmental issues which will be integrated in to the design.  No Objection Letter NOL for EIA AMDAL was issued by World Bank on August 8, 2014.

6.6.17 Package No.17: SP. Gunung Kemala Pg. Tampak Social Issues:

 LARAP implementation report is not yet submitted by Satker 1 Lampung to PMUCTC. Environmental Issues:  CTC need to check the recommendations of AMDAL UKLUPL in the field for clearance of environmental issues which will be integrated in to the design.

6.6.18 Package No.18: Mukomuko Bts. Sumbar Social Issues:

 Still no issues and concerns Environmental Issues:  CTC need to check the recommendations of AMDAL in the field for clearance of environmental issues which will be integrated in to the design.

6.6.19 Package No.19: Lais - Bintunan Social Issues:

 Monitoring Reports of the LARAP s implementation have to be prepared and submitted for review and for submission to World Bank. Environmental Issues:-  CTC need to check the recommendations of UKLUPL in the field for clearance of environmental issues which will be integrated in to the design.

6.6.20 Package No.20: Lubuk Alung Sicincin Social Issues:

 Corrected LARAP documents still to be submitted for final review prior to submission to World Bank. Environmental Issues:  CTC need to check the recommendations of UKLUPL in the field for clearance of environmental issues which will be integrated in to the design. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 60

6.6.21 Package No.21: Lubuk Alung Kuraitaji Social Issues:

 Corrected LARAP documents still to be submitted for final review prior to submission to World Bank. Environmental Issues:  CTC need to check the recommendations of UKLUPL in the field for clearance of environmental issues which will be integrated in to the design..

6.7. Management Information System

In August 2014, we began a process of synchronizing data between the SIPP application of DGH with the FMIS application. The data from the SIPP application useful as comparative data for the financial progress of each WINRIP project package. The DGH has given a URL address for parsing the data in http:103.12.84.51sippterpadupetadatawinrip.php . All data and information from database of the SIPP application will be updated automatically in that URL address as a XML raw data.

6.7.1 Synchronizing Data of The FMIS Application 1 Background

The World Bank WB, the Bank of Indonesia BI and the local SKPD are using different mechanisms of financial statements. So we need to adopt the format of financial statements that are used by them. During this the FMIS application has adopted the format of financial statements that are used by the WB. And now we will adopt the format of financial statements that are commonly used by the Indonesian Government. For that needs, we retrieve that data from the database of SIPP application. 2 Objectives • Synchronize of financial data to update the latest data from the SIPP application. • Making the data from SIPP as comparative data for financial progress. • As a recapitulation database to record the history of financial absorption. • As an indicators to monitor and audit the physical work progress of each WINRIP package. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 61 3 Data Synchronization Mechanism Raw Data Is JSON ? Yes Transport JSON Document Binary Bucket Content PHP String Browser: JSON Object Query Script FMIS Database No Store FMIS Application SIPP Server Data parsing from the SIPP server into FMIS application using the JSON object. JSON JavaScript Object Notation is a lightweight data interchange format, easy to read and written by humans, and is translated and created generated by the computer. This format is based on part of the JavaScript Programming Language. JSON can be run in any programming language such as C, C ++, Java, JavaScript, Perl, Python, PHP, ASP, etc. The raw data from the SIPP server must be verified as a JSON document. Then the JSON document sent with PHP string by a web browser. From this URL address, we can retrieved the raw data in the JSON document using a query script to the database of FMIS application. 4 System Assessment Information system and monitoring of financial progress and physical work progress are described through the following scheme. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 62 Explanation: • Parsing data from SIPP application by filtering the data with sorting and retrieving data of financial progress and physical work progress that only for the WINRIP packages. • Then added with data from quarterly reports the IFR and monthly reports the MPRfrom the Field Supervision Team. • All data from the 3 sources of data are then inputing into a database of the FMIS application. • The combined data from all data sources have outputs of complete information and according to the needs of the project monitoring activities. 5 System Analysis 1. Needs Analysis NO. NEEDS RECOMMENDATION 1. Inputting the new project information Need to create a menu to inputting the data for new project information. 2. Create categories of projects progress. Setting up a facility to add and manage the categories of projects progress. 3. Change the existing of information of projects progress. Provides a menu to change the existing of information of projects progress. 4. Delete the existing of information of projects progress. Provides a menu to delete the existing of information of projects progress. 5. Create of project Prepare a plugin to convert list of project progress Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 63 NO. NEEDS RECOMMENDATION progress report. report into the PDF and MS-Excel file. 2. Module Programming The FMIS application consists of 6 modules we have added 1 new module programming as follows : • Module of Project Data, to store all of WINRIP project information into database. • Module of Financial and Physical Progress, which is the same as the Form A- 1 in the SIPP application of DGH . • Module of Progress Summary, using the same format as the MPR Monthly Progress Reports from the Field Supervision Team. • Module of History of Financial and Physical Progress, recapitulation of the financial and physical work progress reports from the beginning to the current month. • Module of Reports, the report form form 1-A, 1-B, etc based on the IFR report that related to the IBRD standard. • Module of User, to store user information and password. 6 System Design 1. Interface Design 1.The latest progress in welcome page Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 64 2.List of packages information Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 65 3.Progress details Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 66 4.Edit scheduled progress Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 67 5.History of works progress 2. Database Tables 1.Table: konstruksi Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 68 2.Table: konstruksi_addendum 3.Table: konstruksi_divisi 4.Table: konstruksi_kontrak 5.Table: konstruksi_prolusi Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 69 6.Table: konstruksi_realisasi 7.Table: konstruksi_realisasi_detail 8.Table: konstruksi_rencana_kontrak

9. Table: provinsi

Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 70

10. Table: users

6.7.2 Restructuring of Folder of The File Storage

We have restructured folder in the external hard drive of the File Storage. And it makes the cloud system that can be accessed The File Storage through the URL address: www.wd2go.com . We use the WD My Cloud framework to create this cloud system. But apparently The WD My Cloud framework using Java Applet that blocked by all internet browser software. So the File Storage failed to open with the browser software. Therefore, in the next month we will try the other ways to develop the cloud system for the File Storage.

6.7.3 Work Plan in September 2014 1 Completion of The FMIS Application

We are planning to complete the development of the FMIS application at the end of August. The modules to be completed is Consultant Services module and Reports module. And then Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 71 well do a system test. If the system has been running well, then we will disseminate to each Satkers. 2 Data Synchronization from The SIPP to The FMIS Application The SIPP application from DGH as a reference and a source of primary data for financial reports. For it will be synchronized data from the SIPP to the FMIS application. Data synchronization mechanism will be discuss later with the Subdit Infokom of DGH. 3 Restructuring of Folder of The File Storage In accordance with the request of the PMU to restructuring the folder structure on the File Storage server. They asked that the name of 21 civil works package as the root folder. Then all the data and documents will be put into a folder of each civil works package.

6.8 Quality Assurance

The Project Management Manual PMM Works Implementation Part had been aproved by BINTEK on August 15, 2014. The Quality Assurance Manual has been submitted to PMU In the MPR SE must be submit monthly reports of testing or quality control activities for any job that requires testing. Quality Assurance progress are shown in Appendix D

6.9 Project Risks and Mitigation Measures

6.9.1 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 to the procurement of AWP-2 and AWP-3 sub-projects. As discussed previously, 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. 6.9.2 Financial Risks The following factors will be monitored during implementation of the loan project. • Loan Amount • Actual Tender Prices • Price Adjustment • Current Estimated Situation Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 72 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 factor of 10 for both additional cost components is applied on the original cost. 6.9.3 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 or otherwise 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 but the Quality Assurance Engineer from CTC. CTC s Quality Assurance Engineer not able to prepare quality assurance report because DSC have never forwarded to CTC quality control report. Monthly Progress Report August 2014 Western I ndonesia National Roads I mprovement Project 73 7 ISSUES and RECOMMENDATIONS

7.1 Current Situation

The main issues during this month of August 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 finalization of the Project Management Manual PMM and Quality Assurance Manual QAM d The considerable negative slippage behind schedule of two 2 on-going construction sub-projects

7.2 Action 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 will be on tender, the Project Management Manual PMM and the Quality Assurance Manual QAM shall be formally approved. In the absence of an officially approved Quality Assurance Manual, a Draft Final version of the manual was issued to the Design Supervision Consultant DSC for their provisional reference in the quality requirement of the on-going sub-project. 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. 8 CORRESPONDENCES During the period the CTC received and issued letters. Lists of letters received and issued are shown in Appendix J.