Selanjutnya
A.I . D. PROJECT NO. 497-0276
A.I.D. LOAN NO. 497-T- 0588
AMENDMENT NO . 3 TO
LOAN AGREEMENT
BETWEEN THE
REPUBLIC OF INDONESIA
AND THE
UNITED STATES OF AMERICA
FOR
PROVINCIAL AREA DEVELOPMENT PROGRAM II
Dated:
. ,
June 17 , 1983
Dated : June 17, 1983
This AMENDMENT NO . 3 is entered into between the REPUBLIC OF
INDONESIA ("Borrower") and the UNITED STATES OF AMERICA, acting
through the AGENCY FOR INTERNATIONAL DEVELOPMENT ("A . I . D. ") :
WITNESSETH THAT
WHEREAS, the Borrower and A. I . D. entered into a Loan
Agreement , designated cs A.I . D. Loan No. 497-T-058 on May 23,
1979 ("Loan Agreement"), whereby A.I . D. agreed to lend to the
Borrower up to Seven Million United States ("U.S.") Dollars
($7,000 , 000 ) ("Loan") to assist in financing Borrower ' s program
to enable provincial and lower levels of government in Bengkulu,
South Kalimantan, East Nusa Tenggara and East Java Provinces to
improve their capability for the identification, planning,
implementation, management and evaluation of rural/area
development projects and activities that reach and assist the
rural poor; and
WHEREAS , the Borrower and A.I.D. amended the Loan Agreement
on August 15, 1979 to add $2,000 , 000 to the Loan, thereby
increasing the Loan to $9 , 000 , 000;
ｾｬｩｅｒａｓ
Ｌ＠
the Borrower and A. I . D. amended the Loan Agreement
on April 28 , 1980 to add the provinces of West Java and West
Nusa Tenggara and to add $9 , 000 , 000 to the Loan, thereby
increasing the Loan to $18,000,000, and
WHEREAS, the Borrower and A. I . D. desire again to amend to
----------------- -
- 2 Loan Agreement to add an additional $12,650,000, and to make
certain other changes to the Loan Agreement;
NOW THEREFORE, the Borrower and A.I.D. hereby agree as
follows :
1.
The first paragraph of Section 3.1 is revised to read as
follows:
"Section 3.1.
The Loan.
To assist the Borrower to meet the
costs of carrying out the Project, A.I.D., pursuant to the
Foreign Assistance Act of 1961, as amended, agrees to lend the
Borrower under the
ｴ･ｲｾｳ＠
of this Agreement not to exceed Thirty
Hillion Six Hundred and Fifty Thousand United States (U.S.)
Dollars ($30,650,000)("Loan")".
The aggreqate amount of
disbursements under the Loan is referred to as "Principal"."
2.
Section 3.3 .
Project Assistance Completion Date.
Section 3.3(a) is revised to extend the project assistance
completion date from May 23, 1985 to December l, 1989.
3.
Article 5, Conditions Precedent to Disbursement, is
amended by deleting Section 5 . 2 and 5.3 and substituting the
following:
"Section 5.2
Disbursement for Subprojects .
Prior to
the first disbursement of Loan funds under this Amendment
for subproject act:vities,
or to the issuance by A.I.D. of
documentation pursuant to which disbursement will be made
with respect thereto, the Borrower will, except as A.I.D.
may otherwise agree in writing , furnish to A.I . D. in form
and substance satisfactory to A.I . D. , evidence that the
Borrower has issued a series of instructions to the
- 3 provinces participating in the Project which establish a new
planning system agreed upon between the Borrower and A.I.D."
4.
Article 6, Special Covenants, is revised to add the
following covenants:
"Section 6 . 2.
Institution Building.
The Borrower agrees that, in order to maximize the
institutional development of kabupaten resulting from the
project, any kabupaten which participates in the project
shall continue to do so for the entire life of the project
whether such district is presently participating or is added
during the extension of the project .
Section 6.3 .
Training.
The Borrower agrees to secure the staff necessary for
both the Directorate General of Regional Development,
Ministry of Home Affairs, and the local governments to
permit existing staff to be sent for masters' degree
training under the PDP II extension.
Section 6 . 4 .
Approval of Planning Documents.
The Borrower agrees that A.I.D. will have the right to
review and approve project planning documents, including the
multi-year program strategy, the annual operational plan,
and the individual project proposals (DUPs), before
implementation of the activities included in such documents."
5.
A revised Amplified Project Description is attached as
Annex I to this Amendment.
6.
A revised financial plan is attached as Annex II to this
Amendment.
-
7.
4 -
Except as hereinabove expressly amended, the Loan
Agreement is ratified, confirmed and conti nued in full force and
effect in accordance with all of its terms.
IN WITNESS WHEREOF, the Borrower and the United States of
America, each acting through its respective duly authorized
representative, have caused this Amendment No. 3 to be signed in
their names and delivered as of the day and year first above
wri tten.
REPUBLIC OF INDONESIA
--
UNITED STATES OF AMERICA
Signed
Signed
mo Ma tonagoro
Ac 1n Director General
for Foreign Economic Relations
Department of Foreign Affairs
ｾｮ＠
H. Holdridge
bassador
ANNEX I
AMPLIFIED PROJECT DESCRIPTION OF THE PROJECT
I.
Project Purpose:
The purpose of the Provincial Area Development Project II is to
increase the productive capacity of rural people by increasing the
capacity of local government agencies to undertake five-year and
annual planning , implementation and monitoring of rural development
activities wi th in the provinces of Bengkulu, South Kalimantan, East
Nusa Tenggara (NTT), East Java , West Nusa Tenggara (NTB) and West
Java. As a secondary purpose the project aims to increase the
capacity of central government agencies, primarily the Directorate
General of Regional Development (BANGDA), Ministry of Home Affairs,
to support and coordinate decentralized planning and execution of
rural development activities under the Ministry of Home Affairs.
II .
Project Outputs
At the completion of the project it is expected that the
following results will have been achieved :
1.
Revised planning system . During the PDP II amendment period,
BANGDA and the provinces will revise the planning system to
encourage intersectoral , multi-year and annual planning by the
BAPPEDAs in cooperat:on with technical agencies for the purpose
of improving the qua l ity of the six provinces' development
programs under the M:nistry of Home Affairs overall . The system
will provide an annual planning calendar to give the provinces
the time necessary to complete their planning and evaluations.
The key documents of this system are as follows:
a.
The Multi - Year Program Strategy (MPS) : The province and
district BAPPEDAs are now responsible for preparing a
five-year development plan for their regions (Repelita
Daerah). Under the GOI 's budgeting system the only other
planning document is the annual budget proposal (DUP) which
is confined to a single sector. The purpose of the MPS
(and the subsequent Annual Operational Plan (AOP)) is to
encourage the provinces and districts to identify
inter- related, inter-sectoral programs for funding by PDP
that are consistent with the Region's development needs,
national policies, and the general regional plan (Repelita
Daerah) . The MPS will be the guiding document for PDP
funding over the life of PDP in each province and the basis
for a more specific and useful five-year development plan
(Repelita Daerah) for the region. Each province planning
board and as many district boards as are able will produce
an MPS in collaboration with sectoral and lower level
agencies at the sub-distr ict and village level, including
- 2 the Lembaga Ketahanan Masyarakat Desa (LKMD) or Village
Council which is one forum for village people to meet with
local government officials. These MPSs will include an
analysis of local conditions, needs, constraints, resources
and potentials, as well as appropriate economic, financial,
and technical analyses . On the basis of these analyses,
the provinces and districts will identify priorities,
locations, target population groups and strategies to meet
the needs of these groups.
Recommended activities will
distinguish those which are experimental from other kinds
of activities, indicating whether the goal of a proposed
program area or subproject is immediate impact on
beneficiaries or learning from an experiment. Program
objectives and time schedules will also be identified, and
the MPS will specify the end-of- project objectives,
indicating what the PDP-supported subprojects are expected
to achieve in the long run .
District MPSs in a given province will be reviewed by the
provincial planning boards which are responsible for
ensuring that MPSs are consistent with BANGDA ' s and the
province ' s PDP policies. The provincial planning bodies
will also monitor the quality of the district MPSs. On the
basis of these district strategies, the province will
produce a provincial MPS setting out the overall regional
strategy for PDP. The extent to which districts prepare
individual planning documents wi l l depend on the
institutional strength of the district. Initially, some
districts will be unable to produce plans without extensive
assistance from the province . The purpose of this
extension is to develop institutional capacity to produce
these plans .
b.
Annual Operational Plan (AOP): The second element of the
rev1sed plann1ng system will be the Annual Operational Plan
(AOP) . The AOP will prov i de the rationale for the mix of
proposed programs based on broad MPS strategy and include
budget estimates for component program areas including
support activities such as research and training. The AOP
will also describe how activities will be implemented and
coordinated. As with the MPS, the AOP will be based on
inputs from agencies below the provincial level.
c.
Component Sub- project Plans (DUPs) : Within the GOI the
major plann1ng and budget1ng document is the subproject
proposal, or DUP . The DUPs will specify target
populations, the expected outcomes, linkages among DUPs,
include information on whether or not the activity is
experimental and how it will be evaluated . During the
extension, USAID and the GOI will explore ways to modify
the DUPs to ensure more integrated and coordinated
implementation .
-
3 -
All three elements of the revised planning system -- the
MPS, the AOP, ｡ｾ､＠
individual subproject designs-- will in
the initial years be reviewed by BANGDA and USAID . A
directive from BANGDA, outlining requirements for the AOP
and improved DUPs was issued in March 1983 for
implementation in IFY ＸＳＯＴｾ＠
a directive on the MPS is in
preparation and will be issued by July 1983 for IFY 84/85.
The criteria to be used in assessing these documents will
be agreed to by BANGDA and USAID through a jointly signed
PIL. This review process will be critical to ensure a
sufficient standard of planning and at the same time
maximum flexibility for provincial initiatives and
responsiveness ｾｯ＠
local conditions .
2.
Institutional Development of the Province and District level
BAPPEDAs. During the extension the capacity of these agencies
will be strengthened and their roles in decentralized
development defined operationally. The provincial BAPPEDAs are
responsible for overall coordination and quality control of
development programs and for general strategy setting for the
province; district BAPPEDAs are responsible for specific
strategies for the district and for managing the process of
communicating with rural people through the forum of elected
Village Councils (LKMDs).
3.
Revised Information System. This system includes monitoring and
evaluat1on systems and complements the planning system. The
monitoring system tracks ｩｭｰｬ･ｮｴ｡ｯｾ＠
the evaluation system
measures impact.
4.
Revised Training System. Training will be identified and
conducted by provinces through the planning and budgeting
(DUP/DIP) system and will be an adjunct to the planning
process. Training will emphasize 1) skills training in
administrative processes (planning, monitoring, and evaluation),
2) management training for planning officials, 3) skills
training for recipients of project inputs, and 4) community
development training for members of village councils (LKMDs) to
improve the bottom up planning process.
5.
Improved Subproject Activity: The above planning system is
being put in place to develop more appropriate program areas and
subprojects for implementation by the various provincial and
district technical agencies, both in terms of subproject
selection and implementation. The selection and review process
described above will identify a series of program areas and
subprojects appropriate Loan area's development needs, which
are consistent with the province ' s development strategy, and
which are implementable and technically and economically sound.
It is expected that such subprojects \>lill be non-capital
intensive and be largely concentrated in the areas of
agriculture, credit, small industry, training and local
government development. Other sectors may be included provided
- 4 that their part in a province's or district's strategy is
explained and justified in the planning documents.
PDP II thus will help to finance subprojects that are (i)
targetted on increasing the incomes of the rural poor; (ii)
relatively small scale, of a pilot nature, and capable of
execution within a reasonable time frame; (iii) technically,
economically, financially, socially, environmentally and
administratively sound; (iv) capable of replication; (v) focused
spatially to maximize the likelihood of beneficial linkages
between activities under auspices of the PDP and other
governmental efforts, and (vi) within the framework and major
objectives of the individual provincial development plan
(REPELITA).
III.
1.
Responsibilities of Parties:
AID :
A financial plan is attached as Annex II to the Agreement.
AID loan and grant funds added under the Amendment will be
used for technical assistance, training, limited
commodities, and provincial subprojects identified under
the new planning system. Within the total contributions
agreed to by the GOI and AID as noted in this Agreement,
changes of up to 20% in the amount of funds allocated to
any project budget line item may be made with the written
concurrence of both parties.
In summary AID will fund:
1. Technical Assistance: Technical assistance is
estimated at forty - four person years for long term
expatriate assistance, four person years of short term
assistance, and six person years of expertise through
Indonesian firms for six provinces and the Center .
On
average it is anticipated that each province (and the
Center) will receive eight person years of assistance
over the six- year life of this extension. Assistance
to the Directorate General of Regional Development will
consist of a chief of party/training advisor , a long
term credit advisor, and a training advisor.
All provinces except Bengkulu will have a long term
planning advisor working with the BAPPEDA and technical
agencies to implement the revised planning and
information systems. Technical consultants in
specialized fields (i.e. credit and agriculture) will
also serve in selected PDP provinces.
2.
Training: MA training in regional planning and related
areas for approximately 20 GOI officials selected from
the provincial BAPPEDAs, technical agencies, and the
Directorate General of Regional Development. The
training will be available to member Agencies of the
Steering and technical committees in subjects relevant
to PDP ' s goals to the extent that such training is not
available under other AID projects.
-
2.
5 -
3.
Commodities :
consultants .
Twelve vehicles for use by long term
4.
Evaluation: Funds for a comprehensive evaluation of
project inputs, outputs, and the extent to which the
project has achieved its goals including the goal of
beneficiary participation in project selection.
5.
Subprojects: AID will fund subprojects identified over
four bugetary cycles. Financial mechanisms to be
applied for the A. I.D . local currency contributions for
subproject implementation may include percentage of
actual cost reimbursement and direct disbursement of
local currency . The most appropriate mechanisms for
each activity as well as the amount of the A.I.D . and
GOI contributions, will be decided annually upon the
review of provincial plans and be agreed to in writing.
Government of Indonesia:
The GOI contribution consists of an in-kind contribution to
technical assistance and the funding of local provincial
subprojects identified under the project. Support for
provincial subprojects identified under the planning
process will be in regular GO! fiscal year budget
allocations.
The Provincial Area Development Program II will be under
the overall direction and guidance of the national level
Steering and Technical Committees, representing the
Ministry of Home Affairs , BAPPENAS, the Ministry of Public
Horks and the Ministry of Finance . The Committees were
established by the Ministry of Home Affairs Decree No. 309
of 1976. The Directorate General for Regional Development
(BANGDA} of the Ministry of Home Affairs will be
responsible for overall execution of PDP II for the central
government . The operating level PDP II project management
unit will be located within BANGDA's Directorate for
Provincial Development.
In the provinces of Bengkulu,
South Kalimantan, East Nusa Tenggara, East Java, West Nusa
Tenggara , and West Java the governors and their provincial
planning boards (BAPPEDA} will be the primary counterparts
responsible for guiding, directing and coordinating the
participating technical service agencies and districts.
IV. Implementation Plan:
The program w1ll function within the context of the GO! fiscal
year budget cycle for planning, preparation of annual budgets
and implementation . It is anticipated that ten years of
programming, implementation, monitoring and evaluation will be
sufficient for making the substantive improvements in local
- 6 government administration, and therefore PDP II will be
primarily concerned with Indonesian Fiscal Years (IFY) 79/80
through IFY 88/89.
Implementation procedures will be the subject of subsequent
Project Implementation Letters (PILs). Implementation Actions
will follow along the project outputs described earlier and will
include the following major activities:
(1) annual instructions/
guidelines sent to the provinces and districts; (2) multi-year
program strategies (MPS) and annual operational plans (AOP)
developed at these local levels in accordance with the revised
planning system as described in the PDP II Project Paper
Amendment; (3) a joint National Steering/Technical Committee/
USAID review following submission of these provincial plans in
at least the first year of the new planning cycle (IFY 84/85).
Implementation will be complemented by two major evaluations
throughout the life of the project that will identify aspects of
the project for revision as well as the degrees to which local
participation, primarily village level, is incorporated in
planning program areas and subproject execution and
implementation. The evaluation will also examine the extent to
which decentralization has proceeded, the impact of PDP
activities on decentralization generally as a GOI objective , the
impact of subproject activity on the standard of living and
income of beneficiaries, and the degree to which the planning
process described earlier has been institutionalized. A special
evaluation also will be done to focus on the effectiveness of
PDP subprojects in agriculture .
ANNEX II(a)
StJMMr\RY FINAN:IAL PIAN PDP II EXTENSION
(OBLIGATIONS 'IO DI\TE AND FUNrS EXPOCTED 'IO BE OBLIGATED IN FUTURE 'YEAR))
($000}
I
I
I
I.
Tedhnical Assistance
II.
T r a i n i n g
External Evaluaticn
v.
Projects and Programs
VI .
COnti r:¥Jency
Fx
I 8,415
I
I
40
I
I
193
I
I
112
I
I
I
I
I
III. Commodities
IV.
ffiMD
ｾＭｔ
Total
Y
I
Grant
I 8,760
I
I
Lc
I
I
I
I
I
I
I
I
I
I
I
I
780
I
I
I
460 I
I
I
I
I
I
I
I
I
II
I 1,240 I
I
I
LOan
Fx
I
Lc
I
I
I
Total
tEAID
I
I
I
I
GO!
I 14,619.6 I 1,875
I
I
1,ooo
I 1,5oo.o I
235
I
I
373.0 I
5,600
180
I
I
I
160
I
212.0 I
I
I
2,5oo
19,800
I 22,300.0 I 24,290
I
I
300
2,135.4 I 2,435.4 I
I
I
---T - _____T _____ T 8,870
I 22,630
I 41,500
I 32,ooolf
I
I
I
4,890
534.6
I
I
I
I
Total
ffiAID
+
GOI
I
I
I
I
I
I
I
I
I
I
I
II
I
I
16,494.6
1,735
5,973
272
46,590
2,435.4
73,500
ｾＧ＠
Includes in-kim contributions
·-
)
,\
ANNEX II(b)
RE.VISED
I
I
I
I.
Tedhnical Assistance
II.
Training
III. Commodities
rv. External Evaluation
v.
Projects and Programs
VI.
ContinJency
I
ｾ＠
OBLIGATIONS 'lD IlP.TE
Total
I
LOan
Fx
Fx
460
1,000
-
-
180
-
-
-
160
2,500
-
-
300
I
Lc
4,890
-
I 6, 760
I
780
-
I
Total
(SooO)
t.SAID
Grant
I 6,527
I
40
I
I
193
I
I
I
I
I
I
PU\N :
ｆｉｾａｌ＠
I 1,240
I
I 8,870
I
534.6
19,800
1, 2B5.4
I 21,780
I
I Total
I USAID
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
12,731.6 I
I
I
I
373
I
I
160
I
I
22,3oo .o I
I
1,585.4 I
I
GOI
1,875
1,500
I 38,650
I
I
I
I
I
I
t.SAID
+
GOI
I 14,606 . 6
235
I
1,735
5,600
I
5,973
I
160
24,290
-
I 46,590
1,585.4
I
32,oool/1
70,650
I
Includes in-kind contributions
c.
,.
' , _.
'' 1:
A.I.D. LOAN NO. 497-T- 0588
AMENDMENT NO . 3 TO
LOAN AGREEMENT
BETWEEN THE
REPUBLIC OF INDONESIA
AND THE
UNITED STATES OF AMERICA
FOR
PROVINCIAL AREA DEVELOPMENT PROGRAM II
Dated:
. ,
June 17 , 1983
Dated : June 17, 1983
This AMENDMENT NO . 3 is entered into between the REPUBLIC OF
INDONESIA ("Borrower") and the UNITED STATES OF AMERICA, acting
through the AGENCY FOR INTERNATIONAL DEVELOPMENT ("A . I . D. ") :
WITNESSETH THAT
WHEREAS, the Borrower and A. I . D. entered into a Loan
Agreement , designated cs A.I . D. Loan No. 497-T-058 on May 23,
1979 ("Loan Agreement"), whereby A.I . D. agreed to lend to the
Borrower up to Seven Million United States ("U.S.") Dollars
($7,000 , 000 ) ("Loan") to assist in financing Borrower ' s program
to enable provincial and lower levels of government in Bengkulu,
South Kalimantan, East Nusa Tenggara and East Java Provinces to
improve their capability for the identification, planning,
implementation, management and evaluation of rural/area
development projects and activities that reach and assist the
rural poor; and
WHEREAS , the Borrower and A.I.D. amended the Loan Agreement
on August 15, 1979 to add $2,000 , 000 to the Loan, thereby
increasing the Loan to $9 , 000 , 000;
ｾｬｩｅｒａｓ
Ｌ＠
the Borrower and A. I . D. amended the Loan Agreement
on April 28 , 1980 to add the provinces of West Java and West
Nusa Tenggara and to add $9 , 000 , 000 to the Loan, thereby
increasing the Loan to $18,000,000, and
WHEREAS, the Borrower and A. I . D. desire again to amend to
----------------- -
- 2 Loan Agreement to add an additional $12,650,000, and to make
certain other changes to the Loan Agreement;
NOW THEREFORE, the Borrower and A.I.D. hereby agree as
follows :
1.
The first paragraph of Section 3.1 is revised to read as
follows:
"Section 3.1.
The Loan.
To assist the Borrower to meet the
costs of carrying out the Project, A.I.D., pursuant to the
Foreign Assistance Act of 1961, as amended, agrees to lend the
Borrower under the
ｴ･ｲｾｳ＠
of this Agreement not to exceed Thirty
Hillion Six Hundred and Fifty Thousand United States (U.S.)
Dollars ($30,650,000)("Loan")".
The aggreqate amount of
disbursements under the Loan is referred to as "Principal"."
2.
Section 3.3 .
Project Assistance Completion Date.
Section 3.3(a) is revised to extend the project assistance
completion date from May 23, 1985 to December l, 1989.
3.
Article 5, Conditions Precedent to Disbursement, is
amended by deleting Section 5 . 2 and 5.3 and substituting the
following:
"Section 5.2
Disbursement for Subprojects .
Prior to
the first disbursement of Loan funds under this Amendment
for subproject act:vities,
or to the issuance by A.I.D. of
documentation pursuant to which disbursement will be made
with respect thereto, the Borrower will, except as A.I.D.
may otherwise agree in writing , furnish to A.I . D. in form
and substance satisfactory to A.I . D. , evidence that the
Borrower has issued a series of instructions to the
- 3 provinces participating in the Project which establish a new
planning system agreed upon between the Borrower and A.I.D."
4.
Article 6, Special Covenants, is revised to add the
following covenants:
"Section 6 . 2.
Institution Building.
The Borrower agrees that, in order to maximize the
institutional development of kabupaten resulting from the
project, any kabupaten which participates in the project
shall continue to do so for the entire life of the project
whether such district is presently participating or is added
during the extension of the project .
Section 6.3 .
Training.
The Borrower agrees to secure the staff necessary for
both the Directorate General of Regional Development,
Ministry of Home Affairs, and the local governments to
permit existing staff to be sent for masters' degree
training under the PDP II extension.
Section 6 . 4 .
Approval of Planning Documents.
The Borrower agrees that A.I.D. will have the right to
review and approve project planning documents, including the
multi-year program strategy, the annual operational plan,
and the individual project proposals (DUPs), before
implementation of the activities included in such documents."
5.
A revised Amplified Project Description is attached as
Annex I to this Amendment.
6.
A revised financial plan is attached as Annex II to this
Amendment.
-
7.
4 -
Except as hereinabove expressly amended, the Loan
Agreement is ratified, confirmed and conti nued in full force and
effect in accordance with all of its terms.
IN WITNESS WHEREOF, the Borrower and the United States of
America, each acting through its respective duly authorized
representative, have caused this Amendment No. 3 to be signed in
their names and delivered as of the day and year first above
wri tten.
REPUBLIC OF INDONESIA
--
UNITED STATES OF AMERICA
Signed
Signed
mo Ma tonagoro
Ac 1n Director General
for Foreign Economic Relations
Department of Foreign Affairs
ｾｮ＠
H. Holdridge
bassador
ANNEX I
AMPLIFIED PROJECT DESCRIPTION OF THE PROJECT
I.
Project Purpose:
The purpose of the Provincial Area Development Project II is to
increase the productive capacity of rural people by increasing the
capacity of local government agencies to undertake five-year and
annual planning , implementation and monitoring of rural development
activities wi th in the provinces of Bengkulu, South Kalimantan, East
Nusa Tenggara (NTT), East Java , West Nusa Tenggara (NTB) and West
Java. As a secondary purpose the project aims to increase the
capacity of central government agencies, primarily the Directorate
General of Regional Development (BANGDA), Ministry of Home Affairs,
to support and coordinate decentralized planning and execution of
rural development activities under the Ministry of Home Affairs.
II .
Project Outputs
At the completion of the project it is expected that the
following results will have been achieved :
1.
Revised planning system . During the PDP II amendment period,
BANGDA and the provinces will revise the planning system to
encourage intersectoral , multi-year and annual planning by the
BAPPEDAs in cooperat:on with technical agencies for the purpose
of improving the qua l ity of the six provinces' development
programs under the M:nistry of Home Affairs overall . The system
will provide an annual planning calendar to give the provinces
the time necessary to complete their planning and evaluations.
The key documents of this system are as follows:
a.
The Multi - Year Program Strategy (MPS) : The province and
district BAPPEDAs are now responsible for preparing a
five-year development plan for their regions (Repelita
Daerah). Under the GOI 's budgeting system the only other
planning document is the annual budget proposal (DUP) which
is confined to a single sector. The purpose of the MPS
(and the subsequent Annual Operational Plan (AOP)) is to
encourage the provinces and districts to identify
inter- related, inter-sectoral programs for funding by PDP
that are consistent with the Region's development needs,
national policies, and the general regional plan (Repelita
Daerah) . The MPS will be the guiding document for PDP
funding over the life of PDP in each province and the basis
for a more specific and useful five-year development plan
(Repelita Daerah) for the region. Each province planning
board and as many district boards as are able will produce
an MPS in collaboration with sectoral and lower level
agencies at the sub-distr ict and village level, including
- 2 the Lembaga Ketahanan Masyarakat Desa (LKMD) or Village
Council which is one forum for village people to meet with
local government officials. These MPSs will include an
analysis of local conditions, needs, constraints, resources
and potentials, as well as appropriate economic, financial,
and technical analyses . On the basis of these analyses,
the provinces and districts will identify priorities,
locations, target population groups and strategies to meet
the needs of these groups.
Recommended activities will
distinguish those which are experimental from other kinds
of activities, indicating whether the goal of a proposed
program area or subproject is immediate impact on
beneficiaries or learning from an experiment. Program
objectives and time schedules will also be identified, and
the MPS will specify the end-of- project objectives,
indicating what the PDP-supported subprojects are expected
to achieve in the long run .
District MPSs in a given province will be reviewed by the
provincial planning boards which are responsible for
ensuring that MPSs are consistent with BANGDA ' s and the
province ' s PDP policies. The provincial planning bodies
will also monitor the quality of the district MPSs. On the
basis of these district strategies, the province will
produce a provincial MPS setting out the overall regional
strategy for PDP. The extent to which districts prepare
individual planning documents wi l l depend on the
institutional strength of the district. Initially, some
districts will be unable to produce plans without extensive
assistance from the province . The purpose of this
extension is to develop institutional capacity to produce
these plans .
b.
Annual Operational Plan (AOP): The second element of the
rev1sed plann1ng system will be the Annual Operational Plan
(AOP) . The AOP will prov i de the rationale for the mix of
proposed programs based on broad MPS strategy and include
budget estimates for component program areas including
support activities such as research and training. The AOP
will also describe how activities will be implemented and
coordinated. As with the MPS, the AOP will be based on
inputs from agencies below the provincial level.
c.
Component Sub- project Plans (DUPs) : Within the GOI the
major plann1ng and budget1ng document is the subproject
proposal, or DUP . The DUPs will specify target
populations, the expected outcomes, linkages among DUPs,
include information on whether or not the activity is
experimental and how it will be evaluated . During the
extension, USAID and the GOI will explore ways to modify
the DUPs to ensure more integrated and coordinated
implementation .
-
3 -
All three elements of the revised planning system -- the
MPS, the AOP, ｡ｾ､＠
individual subproject designs-- will in
the initial years be reviewed by BANGDA and USAID . A
directive from BANGDA, outlining requirements for the AOP
and improved DUPs was issued in March 1983 for
implementation in IFY ＸＳＯＴｾ＠
a directive on the MPS is in
preparation and will be issued by July 1983 for IFY 84/85.
The criteria to be used in assessing these documents will
be agreed to by BANGDA and USAID through a jointly signed
PIL. This review process will be critical to ensure a
sufficient standard of planning and at the same time
maximum flexibility for provincial initiatives and
responsiveness ｾｯ＠
local conditions .
2.
Institutional Development of the Province and District level
BAPPEDAs. During the extension the capacity of these agencies
will be strengthened and their roles in decentralized
development defined operationally. The provincial BAPPEDAs are
responsible for overall coordination and quality control of
development programs and for general strategy setting for the
province; district BAPPEDAs are responsible for specific
strategies for the district and for managing the process of
communicating with rural people through the forum of elected
Village Councils (LKMDs).
3.
Revised Information System. This system includes monitoring and
evaluat1on systems and complements the planning system. The
monitoring system tracks ｩｭｰｬ･ｮｴ｡ｯｾ＠
the evaluation system
measures impact.
4.
Revised Training System. Training will be identified and
conducted by provinces through the planning and budgeting
(DUP/DIP) system and will be an adjunct to the planning
process. Training will emphasize 1) skills training in
administrative processes (planning, monitoring, and evaluation),
2) management training for planning officials, 3) skills
training for recipients of project inputs, and 4) community
development training for members of village councils (LKMDs) to
improve the bottom up planning process.
5.
Improved Subproject Activity: The above planning system is
being put in place to develop more appropriate program areas and
subprojects for implementation by the various provincial and
district technical agencies, both in terms of subproject
selection and implementation. The selection and review process
described above will identify a series of program areas and
subprojects appropriate Loan area's development needs, which
are consistent with the province ' s development strategy, and
which are implementable and technically and economically sound.
It is expected that such subprojects \>lill be non-capital
intensive and be largely concentrated in the areas of
agriculture, credit, small industry, training and local
government development. Other sectors may be included provided
- 4 that their part in a province's or district's strategy is
explained and justified in the planning documents.
PDP II thus will help to finance subprojects that are (i)
targetted on increasing the incomes of the rural poor; (ii)
relatively small scale, of a pilot nature, and capable of
execution within a reasonable time frame; (iii) technically,
economically, financially, socially, environmentally and
administratively sound; (iv) capable of replication; (v) focused
spatially to maximize the likelihood of beneficial linkages
between activities under auspices of the PDP and other
governmental efforts, and (vi) within the framework and major
objectives of the individual provincial development plan
(REPELITA).
III.
1.
Responsibilities of Parties:
AID :
A financial plan is attached as Annex II to the Agreement.
AID loan and grant funds added under the Amendment will be
used for technical assistance, training, limited
commodities, and provincial subprojects identified under
the new planning system. Within the total contributions
agreed to by the GOI and AID as noted in this Agreement,
changes of up to 20% in the amount of funds allocated to
any project budget line item may be made with the written
concurrence of both parties.
In summary AID will fund:
1. Technical Assistance: Technical assistance is
estimated at forty - four person years for long term
expatriate assistance, four person years of short term
assistance, and six person years of expertise through
Indonesian firms for six provinces and the Center .
On
average it is anticipated that each province (and the
Center) will receive eight person years of assistance
over the six- year life of this extension. Assistance
to the Directorate General of Regional Development will
consist of a chief of party/training advisor , a long
term credit advisor, and a training advisor.
All provinces except Bengkulu will have a long term
planning advisor working with the BAPPEDA and technical
agencies to implement the revised planning and
information systems. Technical consultants in
specialized fields (i.e. credit and agriculture) will
also serve in selected PDP provinces.
2.
Training: MA training in regional planning and related
areas for approximately 20 GOI officials selected from
the provincial BAPPEDAs, technical agencies, and the
Directorate General of Regional Development. The
training will be available to member Agencies of the
Steering and technical committees in subjects relevant
to PDP ' s goals to the extent that such training is not
available under other AID projects.
-
2.
5 -
3.
Commodities :
consultants .
Twelve vehicles for use by long term
4.
Evaluation: Funds for a comprehensive evaluation of
project inputs, outputs, and the extent to which the
project has achieved its goals including the goal of
beneficiary participation in project selection.
5.
Subprojects: AID will fund subprojects identified over
four bugetary cycles. Financial mechanisms to be
applied for the A. I.D . local currency contributions for
subproject implementation may include percentage of
actual cost reimbursement and direct disbursement of
local currency . The most appropriate mechanisms for
each activity as well as the amount of the A.I.D . and
GOI contributions, will be decided annually upon the
review of provincial plans and be agreed to in writing.
Government of Indonesia:
The GOI contribution consists of an in-kind contribution to
technical assistance and the funding of local provincial
subprojects identified under the project. Support for
provincial subprojects identified under the planning
process will be in regular GO! fiscal year budget
allocations.
The Provincial Area Development Program II will be under
the overall direction and guidance of the national level
Steering and Technical Committees, representing the
Ministry of Home Affairs , BAPPENAS, the Ministry of Public
Horks and the Ministry of Finance . The Committees were
established by the Ministry of Home Affairs Decree No. 309
of 1976. The Directorate General for Regional Development
(BANGDA} of the Ministry of Home Affairs will be
responsible for overall execution of PDP II for the central
government . The operating level PDP II project management
unit will be located within BANGDA's Directorate for
Provincial Development.
In the provinces of Bengkulu,
South Kalimantan, East Nusa Tenggara, East Java, West Nusa
Tenggara , and West Java the governors and their provincial
planning boards (BAPPEDA} will be the primary counterparts
responsible for guiding, directing and coordinating the
participating technical service agencies and districts.
IV. Implementation Plan:
The program w1ll function within the context of the GO! fiscal
year budget cycle for planning, preparation of annual budgets
and implementation . It is anticipated that ten years of
programming, implementation, monitoring and evaluation will be
sufficient for making the substantive improvements in local
- 6 government administration, and therefore PDP II will be
primarily concerned with Indonesian Fiscal Years (IFY) 79/80
through IFY 88/89.
Implementation procedures will be the subject of subsequent
Project Implementation Letters (PILs). Implementation Actions
will follow along the project outputs described earlier and will
include the following major activities:
(1) annual instructions/
guidelines sent to the provinces and districts; (2) multi-year
program strategies (MPS) and annual operational plans (AOP)
developed at these local levels in accordance with the revised
planning system as described in the PDP II Project Paper
Amendment; (3) a joint National Steering/Technical Committee/
USAID review following submission of these provincial plans in
at least the first year of the new planning cycle (IFY 84/85).
Implementation will be complemented by two major evaluations
throughout the life of the project that will identify aspects of
the project for revision as well as the degrees to which local
participation, primarily village level, is incorporated in
planning program areas and subproject execution and
implementation. The evaluation will also examine the extent to
which decentralization has proceeded, the impact of PDP
activities on decentralization generally as a GOI objective , the
impact of subproject activity on the standard of living and
income of beneficiaries, and the degree to which the planning
process described earlier has been institutionalized. A special
evaluation also will be done to focus on the effectiveness of
PDP subprojects in agriculture .
ANNEX II(a)
StJMMr\RY FINAN:IAL PIAN PDP II EXTENSION
(OBLIGATIONS 'IO DI\TE AND FUNrS EXPOCTED 'IO BE OBLIGATED IN FUTURE 'YEAR))
($000}
I
I
I
I.
Tedhnical Assistance
II.
T r a i n i n g
External Evaluaticn
v.
Projects and Programs
VI .
COnti r:¥Jency
Fx
I 8,415
I
I
40
I
I
193
I
I
112
I
I
I
I
I
III. Commodities
IV.
ffiMD
ｾＭｔ
Total
Y
I
Grant
I 8,760
I
I
Lc
I
I
I
I
I
I
I
I
I
I
I
I
780
I
I
I
460 I
I
I
I
I
I
I
I
I
II
I 1,240 I
I
I
LOan
Fx
I
Lc
I
I
I
Total
tEAID
I
I
I
I
GO!
I 14,619.6 I 1,875
I
I
1,ooo
I 1,5oo.o I
235
I
I
373.0 I
5,600
180
I
I
I
160
I
212.0 I
I
I
2,5oo
19,800
I 22,300.0 I 24,290
I
I
300
2,135.4 I 2,435.4 I
I
I
---T - _____T _____ T 8,870
I 22,630
I 41,500
I 32,ooolf
I
I
I
4,890
534.6
I
I
I
I
Total
ffiAID
+
GOI
I
I
I
I
I
I
I
I
I
I
I
II
I
I
16,494.6
1,735
5,973
272
46,590
2,435.4
73,500
ｾＧ＠
Includes in-kim contributions
·-
)
,\
ANNEX II(b)
RE.VISED
I
I
I
I.
Tedhnical Assistance
II.
Training
III. Commodities
rv. External Evaluation
v.
Projects and Programs
VI.
ContinJency
I
ｾ＠
OBLIGATIONS 'lD IlP.TE
Total
I
LOan
Fx
Fx
460
1,000
-
-
180
-
-
-
160
2,500
-
-
300
I
Lc
4,890
-
I 6, 760
I
780
-
I
Total
(SooO)
t.SAID
Grant
I 6,527
I
40
I
I
193
I
I
I
I
I
I
PU\N :
ｆｉｾａｌ＠
I 1,240
I
I 8,870
I
534.6
19,800
1, 2B5.4
I 21,780
I
I Total
I USAID
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
12,731.6 I
I
I
I
373
I
I
160
I
I
22,3oo .o I
I
1,585.4 I
I
GOI
1,875
1,500
I 38,650
I
I
I
I
I
I
t.SAID
+
GOI
I 14,606 . 6
235
I
1,735
5,600
I
5,973
I
160
24,290
-
I 46,590
1,585.4
I
32,oool/1
70,650
I
Includes in-kind contributions
c.
,.
' , _.
'' 1: