Current Implementation Situation Civil Works

Western I ndonesia National Roads I mprovement Project 1 - 3

1.2 Disbursement

Loan Allocation and Percent Disbursement To Date REF 1.25 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 Month C om pl et e Actual Expenditure USD 33.54 mil 13.42 WINRIP ACTUAL PROGRESS UP TO OCTOBER 2015 AND FORECAST UP TO DECEMBER 2017 ACTUAL October 2015 Forecast October 2015 Forecast Expenditure USD 116.88 mil 46.75 Deviation = 30.43 The total disbursements from the loan to the end of October 2015 was USD 33,538,544.71 equivalent to approximately 13.42 of the loan funds. The following table summarizes the individual disbursements as calculated by CTC but retaining the total disbursement from Client Connection at the end of October 2015. Appendix A shows the Overall Loan Progress Status. Category Description Loan Restructuring Amount US Disbursement This Period Previous Disbursement Totals Disbursed to End September in US Disbursed 1 Part 1 Betterment and Capacity Expansion of National Roads. 220,400,000.00 2,324,289.83 26,929,374.05 29,253,663.88 13.27 2 Part 2 Implementation Support 16,000,000.00 4,284,880.83 4,284,880.83 26.78 3 Part 3 Road Sector Institutional Development 1,000,000.00 4 Part 4 Contingency for Disaster Risk Response Unallocated 12,600,000.00 Original Loan Amount 250,000,000.00 2,324,289.83 31,214,254.88 33,538,544.71 13.42 The amount disbursed during this month of October 2015 are Statement of Work Accomplished for Package No. 05 Simpang Rampa Poriaha, Contractor covering the Advance Payment amounting to USD 515,224.49. Package No. 02 Padang Sawah Sp.Empat, Contractor covering the Monthly Certificate Nos. 21 amounting to USD 931,043.72 and Package No. 03 Manggopoh - Padang Sawah, Contractor covering the Monthly Certificate Nos. 21 amounting to USD 878,021.62. The Ending balance for Special Account end of October 2015 USD 514,773.27. Western I ndonesia National Roads I mprovement Project 1 - 4

1.3 World Bank Implementation Review Mission and Site Visit

World Bank Implementation Review Mission along with TFAC conducted site visit to the ongoing packages in the West Sumatra from October 26 to 30, 2015 and will be continued to the Bengkulu Province from November 2 to 6, 2015. WINRIP Social Safeguard mision conducted site visit on October 26, 2015 to the ongoing contract package 5 Sp. Rampa Poriaha and 15 Sibolga-Bts. Tapsel in the North Sumatra and will be continued to the Bengkulu Province for Package 13 and Lampung Province for Package 17 on November 2, 2015. WINRIP Environment Mission conducted site visit on November 2, 2015 to the ongoing contract packages in the Lampung Province and Bengkulu. WINRIP supervision mission kick off meeting will be held on November 10, 2015 at MPWH and wrap up meeting is scheduled on November 18, 2015 at BAPPENAS.

1.4 Procurement of Civil Works Contract Under Category 1 of the Loan Agreement

The current status of Contract Packages which are under final procurement stage are as follows :

1. Package No.15 Sibolga

Batas Tapsel AWP-3 As mentioned in the previous Monthly Progress Report, Contract Agreement has been executed on July 13, 2015 between the Government of Indonesia and winning responsive bidder, PT. Pembangunan Perumahan Persero for a contract amount of Rp. 260,100,000,000 and 810 calendar days completion period. Up to this reports is prepared, the COW date is not set. The delay is due to total land acquisition for the works remained less than 50 of the continuous road length requirement prior the start of works. This delay will affect the date of the package completion beyond the loan closing date.

2. Package No.7 Indrapura - Tapan AWP-2

The sub-project is to be implemented under implementation schedule AWP-2. The Project road length covers 19.50 kilometers and is located in the Province of Sumatera Barat. The Contract Package is procured thru post qualification criteria and National Competitive Bidding NCB method using the Full e-Procurement System. As mentioned in previous monthly report August 2015, the submission and opening bids has been held on August 13, 2015 at the Office of BALAI 2 in Padang. The Bid Evaluation Report BER and the poposed awarded contractor had been submitted to the World Bank on October 9, 2015 and the Bank responded on October 12, 2015 by issuing the No Objection Letter concerning the BER.

3. Package No.8 Bts. Kota Pariaman - Manggopoh 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 46.80 kilometers. The Contract Package is procured thru the Prequalification and International Competitive Bidding ICB procurement method. Western I ndonesia National Roads I mprovement Project 1 - 5 As mentioned in previous Monthly Progress Report of August 2015, the bid opening took place as schedule on August 13, 2014 in Padang. The lowest canvassed bid is submitted by the joint venture operation of PT. Adhi Karya and PT. Yasa Patria Perkasa with an amount of Rp. 291,414,100,00 which is 22.77 below the approval Owner s Estimate OE of Rp. 377,319,796,000 while the 2nd lowest bid is quoted by PT. Bangun CiptaPT. DMT Joint Operation with an amount of Rp. 308,500,000,000 or 18.24 lower than the Owner s Estimate. However, based on the evaluation of the Procurement Committee POKJA, the 1 st up to 4 th lowest bidder failed to meet the qualification. Due to failure of the 1 st up to 4 th lowest bidder to satisfy the qualification, POKJA evaluated the bid of the 5 th lowest bidder wherein the bidder fulfilled all qualifications and requirement criteria, thus, POKJA recommended the award of contract to PT. Waskita Karya Persero with a contract amount of Rp. 362,518,232,799,14. The Bid Evaluation Report was forwarded to the World Bank to request confirmation and issuance of No Objection Letter NOL on the BER and award of Contract, however, the Bank thru their letter of October 12, 2015 required further clarifications of the General and Specific Construction Experience and Original Integraty Pact of the 1 st up to 4 th lowest bidder.

4. Package No.10 Sp. Empat

Sp. Air Balam 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 61.70 kilometers. The Contract Package is procured thru the Prequalification and International Competitive Bidding ICB procurement method. As mentioned in previous Monthly Progress Report of August 2015, the bid opening took place as schedule on August 13, 2014 in Padang. The lowest canvassed bid is submitted by PT. Adhi Karya PT. Yasa Patria Perkasa Joint Operation with an amount of Rp. 376,441,300,000 which is 27.53 below the approved Owner s Estimate OE of Rp. 519,453,066,000 while the 2nd lowest bid is quoted by the Joint Venture Operation of PT. Nindya Karya PT. Jaya Konstruksi in the amount of Rp. 414,474,600,000 or 20.21 lower than the Owner s Estimate OE. However, based on the evaluation of the Procurement Committee POKJA, the 1 st up to 4 th lowest bidder failed to meet the qualification. Due to failure of the 1 st up to 4 th lowest bidder to satisfy the qualification, POKJA evaluated the bid of the 5 th lowest bidder wherein the bidder fulfilled all qualifications and requirement criteria, thus, POKJA recommended the award of contract to PT. Waskita Karya Persero with a contract amount of Rp. 498,830,700,000. The Bid Evaluation Report was forwarded to the World Bank to request confirmation and issuance of No Objection Letter NOL on the BER and award of Contract, however, the Bank thru their letter of October 16, 2015 required further clarifications of the General and Specific Construction Experience of the 1 st lowest bidder. PT. Adhi Karya PT. Yasa Patria Perkasa, JO and Request to the 3 rd lowest bidder PT. Lancar Jaya Mandiri Abadi PT. Cahaya Tunggal Abadi, JO which Package of Packages 10 12, should be prioritized by the bidder.