Disbursement WINRIP DOC MPR CTC MPR No.39 2016 3 20160331 00359

Western I ndonesia National Roads I mprovement Project 1 - 6 February 19, 2016 has been concurred by the World Bank on February 22, 2016 by issuing a No Objection Letter NOL to award the contract to the joint operation of PT. Lancarjaya Mandiri Abadi and PT. Cahaya Tunggal Abadi in the amount of Rp.424,285,260,782.50 with 720 calendar days time completion. However, the announcement and notification of the award winner has been witheld temporarily due to conflict with the Presidential Regulation No.54 of the Year 2010, Article 79, Paragraph 2 and Ministerial Regulation No.31 of Year 2015, Article 6d, Paragraph 1 and 2 in which the post evaluation of bids is not in line with the current regulations.

3. Package No.12 Kambang - Indrapura AWP-2

This sub-project is under implementation schedule AWP-2. The project roadline is located in the Province of Sumatera Barat having an approximate length of 55.20 kilometers. The Contract Package is procured thru the post qualification and International Competitive Bidding ICB procurement method using the Full e-Procurement System. As previously mentioned in earlier reports, Contract Agreement has been executed on January 28, 2016 between the Government of Indonesia GOI and PT. Lancarjaya Mandiri Abadi PT. Cahaya Tunggal Abadi JO for a contract amount of Rp. 358,650,400,000 and 720 calendar days contract time. Copy of the signed contract has been submitted on March 7, 2016 to World Bank for request the issuance of Form 384 for disbursement purpose. A day after the submission, the Bank, on March 8, 2016, issued No Objection Letter NOL and the Form 384. Issuance of Notice To Proceed NTP to commence the works is still to be issued subject to substantial completion of compensating the Project Affected People PAP.

4. Package No.16 Seblat-Ipuh AWP-3

The sub-project is to be implemented under implementation schedule AWP-3. The Project road length covers 34.50 kilometers and is located in the Province of Bengkulu. The Contract Package is procured thru post qualification criteria and National Competitive Bidding NCB method using the Full e-Procurement System. Bid Evaluation Report BER has been completed by POKJA and submitted to World Bank on January 11, 2016 for review and issuance of No Objection Letter NOL. However, per Bank s letter of January 20, 2016 regarding results of their prior review of the BER have comments on the proposed disqualification of five 5 lower priced bidders. In response with the Banks comments, POKJA explained in details the reasons to disqualify the five 5 lower priced bidders. The detailed explainations, justifications and resubmission of the Revised Bid Evaluation Report BER were forwarded to the Bank thru letter of March 21, 2016 by the Director of Road Network Development. The Revised Bid Evaluation Report BER and recommendation for award of the contract remain to be the same bidder as previously proposed in the original Bid Evaluation Report BER. Due to the disqualification of the five 5 lower priced bidders, POKJA still propose and recommend the award of the Contract to PT. Hutama Karya Persero for a contract amount of Rp.266,120,828,000. Western I ndonesia National Roads I mprovement Project 1 - 7

5. Package No.14 Painan - Kambang AWP-3

The sub-project is to be implemented under implementation schedule AWP-3. The Project road length covers 31.50 kilometers and is located in the Province of West Sumatera. The Contract Package is procured thru post qualification criteria and National Competitive Bidding NCB using the Full e-Procurement System. As mentioned earlier, there were four 4 applicant bidders 3 sole entity and 1 joint venture operation who submitted bids for the civil works implementation. Following are the four 4 bidders with their respective bid prices : • PT. Yasa Patria Perkasa Conbloc, JO Rp. 214,602,400,000 • PT. Waskita Karya Rp. 239,449,604,000 • PT. Jaya Konstruksi Rp. 239,628,825,000 • PT. PP Rp. 249,277,000,000 The lowest canvassed bid is submitted by the joint venture operation of PT. Yasa Patria Perkasa and Conbloc with an amount of Rp. 214,602,400,000 which is 19.80 below the approved Owner s Estimate OE of Rp. 267,590,800,000 while the 2 nd lowest bid is quoted by PT. Waskita Karya with an amount of Rp. 239,449,604,000 or 10.58 lower than the Owner s Estimate. During this reporting month March 2016 Bid Evaluation Report BER and recommendation for award of contract has been finalized and completed by the Procurement Committee POKJA recommending the award of contract to the evaluated lowest responsive bidder, PT. Yasa Patria Perkasa Conbloc, JO, for a corrected contract amount of Rp.214,327,429,680. The Bid Evaluation Report BER as well as the recommendation for award of contract has been forwarded on March 21, 2016 to World Bank for Bank s concurrence and issuance of No Objection Letter NOL.

6. Package No.20 Lubuk Alung - Sicincin AWP-3

The sub-project is to be implemented under implementation schedule AWP-3. The Project road lenght covers 14.60 kilometers and is located in the Province of West Sumatera. The Contract Package is procured thru post qualification criteria and National Competitive Bidding NCB using the Full e-Procurement System. As mentioned earlier, there were five 5 applicant bidders 4 sole entity and 1 joint venture operation who submitted bids for the civil works implementation. Following are the five 5 bidders with their respective bid prices : • PT. Nindya Karya Rp. 113,818,300,000 • PT. Conbloc Infratechno Statika, KSO Rp. 118,172,039,000 • PT. Waskita Karya Rp. 122,767,255,000 • PT. Jaya Konstruksi Rp. 126,670,765,000 • PT. PP Rp. 125,192,900,000 The lowest canvassed bid is submitted by PT. Nindya Karya with an amount of