WINRIP DOC MPR CTC MPR No.42 2016 6 20160630 00402

Monthly Progress Report No. 42

Covering Project Activities During

PT. PERENTJANADJAJAin sub consultancy with • Yongma Engineering Co. Ltd and iiilPT. Epadascon Pennata Engineering Consultant

CTCOffice: JI.Ciniru VIINo. 25,Kebayoran Baru, Jakarta Selatan,12180

Phone/Fax: (021) 7229823

Direktur enderal Bina Marga

InspektoratJenderal, Kementerian PU-PERA Direktur Transportasi - Bappenas

Direktur Pengelolaan Kas Negara (PKN), KementerianKeuangan Direktur PengembanganJaringan Jalan, Dit.Jen Bina Marga

Direktur Jalan Bebas Hambatan, Perkotaan dan Fasilitasi Jalan Daerah, DitJen Bina Marga Direktur PembangunanJalan, DitJen Bina Marga

Direktur Preservasi Jalan, DitJen Bina Marga Biro Perencanaan&KLN, Kementrian PU-PERA

10. Kepala Balai Besar PelaksanaanJalan Nasional I Medan 11. Kepala Balai Besar PelaksanaanJalan Nasionalll"Padang 12. Kepala Balai Besar PelaksanaanJalan Nasionalill Palembang 13. Kasubdit Keterpaduan Perencanaan& Sistem Jaringan, DPJJ - DJBM 14. Kasubdit Manajemen Konstruksi, DPJ - DJBM

15. Kepala Satker Pembinaan Administrasi dan PelaksanaanPengendalianPHLN 16. PT. Perentjana Djaja

17. Yongma EngineeringCo, Ltd

18. PT. Epadascon Permata EngineeringConsultant 19. File .. .

Should you have any comment or additional information that need to be incorporated in the Report, please feel free to get in touch with us.

This Report is reproduced in twenty (20) copies for distributionto all concerned authorities.

In compliance with the Terms of Reference of our Consultancy Contract, we submit herewith the Monthly

Progress Report No.42 covering the month of June 2016.

_-Dear Sir,

Subject Submission of June 2016 Monthly Progress Report No.42; WINRIP Loan IBRD No.8043-ID

Attention: Ir. Agusta Ersada Sinulingga, MT Officer In Charge PMU WlNRIP Directorate General of Highways, MPWH JI. Patimura20 Kebayoran Baru

Jakarta Selatan Indonesia

Jakarta, July 18, 2016

: 03_02/C TAlO /M -06.2016

Our Ref.No.

Perentjana Ojaja

MINISTRY OF PUBLIC WORKS

&

HOUSING

DIRECTORATE GENERAL OF HIGHWAYS DIRECTORATE OF ROAD NETWORK DEVELOPMENT

Core Team Consultant for

Table of Contents

1 EXECUTIVE SUMMARY... 1-1

1.1 Current Implementation Situation...1-1 1.2 Disbursement...1-4 1.3 World Bank Implementation Review Mission and Site Visit...1-5 1.4 Procurement of Civil Works Contract Under Category 1 of the Loan Agreement...1-5

2 PROJECT DESCRIPTION ... 2-1

2.1 Background...2-1 2.2 Project Development...2-1 2.3 Project Objective ...2-6

3 CONSULTANCY SERVICES ... 3-1

3.1 CTC Consultants ...3-1

3.1.1 Scope of Services ... 3-1

3.1.2 CTC Manning ... 3-2

3.1.3 CTC Contract... 3-3

3.2 DSC Consultants...3-6 3.3 Technical Assistance for Development of Slope Stabilization, Design and Management...3-7

4 CIVIL WORKS... 4-1

4.1 Detailed Design Preparation...4-1 4.2 Procurements ...4-1 4.3 Civil Works Implementation ...4-1 4.4 Civil Works Progress...4-3 4.5 Quality Assurance...4-8 4.6 Environmental and Social Considerations...4-9

4.6.1 Current Overall Situation... 4-9

4.6.2 Environmental and Social Issues... 4-10

4.7 Anti Corruption Issues...4-21

4.7.1 Anti Corruption Action Plan (ACAP) ... 4-21

4.7.2 Community Representative Observers (CRO) ... 4-21

4.7.3 Publication / Disclosure ... 4-22

4.7.4 Complaints Handling Mechanism (CHS) ... 4-23

4.7.5 Third Party Monitoring (TPM)... 4-24

4.8 Road Safety Audit ...4-25

5 FINANCIAL & MANAGEMENT INFORMATION SYSTEMS ... 5-1

5.3. Management Information System ...5-1

6 PROJECT PERFORMANCE ... 6-1

6.1 World Bank and GOI Compliance ...6-1

6.1.1

World Bank Missions ... 6-1

6.1.2 Agreed Key Actions and Mission Plans during Recent World Bank Mission ... 6-1

6.1.3 Performance Indicators ... 6-3

6.2 Implementation Support Components...6-4

6.2.1 Core Team Consultant (CTC)... 6-4

6.2.2 Design and Supervision Consultant (DSC)... 6-4

6.2.3 Study on Development of Slope Stabilization Design and Management... 6-5

6.3 TRAINING TO SUPPORT PROJECT IMPLEMENTATION ...6-5

6.3.1 Continuing to update the PMM for Revision 2, Confirmation of 8 packages

progress, and Preparation of next trainings implementation Asking for confirmtion

rraining programs for the rest packages. .after Idul Fitri: IFR Training, PMM

Application Training, and RKPPL Training. ... 6-5

6.3.2 Progress ... 6-6

6.3.3 Activities Plan for next month (July 2016)... 6-7

6.4 Anti Corruption Issues ...6-7

6.4.1 Anti-Corruption Action Plan (ACAP) ... 6-7

6.4.2 Community Representative Observers (CRO)... 6-8

6.4.3 Third Party Monitoring (TPM)... 6-8

6.4.4 Complaint Handling System (CHS)... 6-10

6.4.5. Public Disclosures / Publication... 6-11

6.5 Road Safety Audit ...6-12

6.5.1 Activities during This Month (June 2016) ... 6-12

6.6 Management Information System ...6-13 6.7 Quality Assurance...6-18 6.8 Project Risks and Mitigation Measures ...6-18

6.8.1 Risks Related to Delays ... 6-18

6.8.2 Financial Risks... 6-18

6.8.3 Risks Related to Quality ... 6-18

7 ISSUES and RECOMMENDATIONS ... 7-1

7.1 Current Situation ...7-1 7.2 Actions Required...7-1

ABBREVIATIONS AND ACRONYMS

ACAP : Anti Corruption Action Plan AER : Application Evaluation Report AIP : Australian Indonesia Partnership

AMDAL : Environmental Management (Analisis Mengenai Dampak Lingkungan)

ANDAS : Analisis Dampak Sosial

AWPs : Annual Work Programs

Balai : Regional Office for National Roads Implementation BAPPENAS : Badan Perencanaan Pembangunan Nasional (National

Development Planning Agency of GOI) Bappedalda : Regional Environmental Impact Agencies

BBPJN : Balai Besar Pelaksanaan Jalan Nasional (Regional Office for National Roads Implementation)

BER : Bid Evaluation Report

BLH : Badan Lingkungan Hidup

BPK : Badan Pemeriksaan Keuangan (Audit Board of the Government of Indonesia)

CAD : Computer Aided Design

CHS : Complaint Handling System

CTC : Core Team Consultant

CHU : Complaint Handling Unit

CRO : Community Representative Observer ( = WPM) DIA : Directorate of Implementing Affairs

DOP : Directorate of Planning

DGH : Directorate General of Highways

DMS : Document Management System

DTA : Directorate of Technical Affairs

DMS : Document Management System

DSC : Design and Supervision Consultants

EA : Executing Agency

EINRIP : Eastern Indonesian National Roads Improvement Project EIRTP-1 : Eastern Indonesia Regional Transport Project First Project ESAMP : Environmental and Social Assessment Plan

FMIS : Financial Management Information System

GIS : Geographic Information System

GOI : Government of Indonesia

IA : Implementation Agency

IBRD : International Bank for Reconstruction and Development

IFR : Internal Financial Report

IRMS : Integrated Road Management System

Kabupaten : Regency

KPIs : Key Performance Indicators

KPPN : Kantor Pelayanan Perbendaharaan Negara (Indonesian: State Treasury Service Office)

LAN : Local Area Network

LARAP : Land Acquisition and Resettlement (Rencana Tindak Pengadaan Tanah dan Pemukiman Kembali)

MIS : Management Information System

MOF : Ministry of Finance

MPW : Ministry of Public Work

MPRs : Monthly Progress Reports

P2JN : Perencanaan Pengawasan Jalan dan Jembatan Nasional

PDF : Portable Document Format

PMU : Project Management Unit

PAPs : Project Affected Peoples

PMM : Project Management Manual

PMU : Project Management Unit (WINRIP)

POKJA : Bina Marga Project Managers and Procurement Committes PPC : Project Preparation Consultants

PP3 : Pemantau Pihak ke 3

PPK : Sub Project Manager

PPR : Project Progress Report

QPRs : Quarterly Progress Reports

RKL/RPL : Rencana Pengelolaan/Pemantauan Lingkungan

RS : Road Safety

Satker : Satuan Kerja (Work Unit for Road Project Implementation) SPPL : Surat Pernyataan Pengelolaan Lingkungan

SRIP : Strategic Road Infrastructure Project

TOR : Terms of Reference

UKL/UPL : Upaya Pengelolaan Lingkungan / Upaya Pemantauan Lingkungan (Site Specific Environmental and Monitoring Plan)

WINRIP : Western Indonesia Roads Improvement Project

WB : World Bank

WP : Work Program

WPs : Works Programs

APPENDICES

Appendix A

:

Overall Loan Progress

Appendix B

:

Road Safety Audit Progress

Appendix C

:

Financial Progress

Appendix D

:

Quality Assurance Progress

Appendix E

:

Environmental and Social Progress

Appendix F

:

Procurement Plan and Progress

Appendix G

:

WINRIP Website Progress

Appendix H

:

ACAP Training/Dissemination Progress

Appendix I

:

Performance Indicator

Appendix J

:

Correspondences

ANNEXES

Annex P-1

:

Package No. 1

Annex P-2

:

Package No. 2

Annex P-3

:

Package No. 3

Annex P-4

:

Package No. 4

Annex P-5

:

Package No. 5

Annex P-6

:

Package No. 6

Annex P-7

:

Package No. 7

Annex P-8

:

Package No. 8

Annex P-11

:

Package No. 11

Annex P-12

:

Package No. 12

Annex P-13

:

Package No. 13

Annex P-15

:

Package No. 15

Annex P-17

:

Package No. 17

Annex P-19

:

Package No. 19

1

EXECUTIVE SUMMARY

1.1 Current Implementation Situation

Civil Works

Implementation of the WINRIP Project is scheduled to be implemented into three (3) Annual Work Programs (AWP s). The implementation starts with the preparation of tender documents (detailed design drawings including associated bidding documents), tendering stage (procurement of works) and the actual civil works construction implementation.

The original implementation schedules of the three (3) Annual Work Programs (AWPs) are scheduled in three (3) phases namely ; AWP-1 to start in mid-2011 and to be completed on the last quarter of 2014, AWP-2 is expected to begin in mid 2012 with target date of completion by mid-2016 and AWP-3 is expected to start during the early part of 2013 and to be completed during the middle part of 2017.

However, due to some unavoidable circumstances the original implementation schedules did not materialized.

Based on the present status of the program implementation progress, a revised implementation schedule, the Project Implementation Timeline (as shown onPage 1-2) is to be implemented in order to accommodate the originally delayed schedule into the remaining time frame of the WINRIP Program until the expiry date of the loan agreement by the end ofDecember 2017. Shown

on Page 1-3 is the current actual status of the implementation relative to the Project

Implementation Timeline .

Implementation Status as of June 30, 2016.

Pack

Package Name

Contract Under Contract Proc Under

Defect Liability

Period

No. Sign Construct Sign

Preparation Process

1 Krui - Biha √ Completed √

2 Padang Sawah - Sp.Empat √ Completed √

3 Manggopoh - Padang Sawah √ Completed √

4 Ipuh - Bantal √ Completed √

5 Sp. Rampa - Poriaha √ √

6 Ps. Pedati - Kerkap √ √

7 Indrapura - Tapan √ √

8 Bts.Pariaman - Manggopoh √ √

10 Sp. Empat - Sp. Air Balam √

11 Bantal - Mukomuko √ √

12 Kambang - Indrapura √ √

13 Sp. Rukis - Tj.Kemuning √ √

14 Painan - Kambang √

15 Sibolga - Bts.Tap Sel √ √

16 Seblat - Ipuh √

17 Sp.Gn.Kemala - Pg.Tampak √ √

19 Lais - Bintunan √ Completed √

20 Lubuk Alung - Sicincin √

21 Lubuk Alung - Kuraijati √

T O T A L : 17 9 0 2 5

Project Implementation Timeline Schedule

Length C'tion

Km Period J N D J F M A M J J A S O N D J F M AM J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

1 Krui - Biha 25,00 21 mth

2 Padang Sawah - Sp.Em pat 40,90 24 mth

3 Manggopoh - Padang Sawah 32,00 24 mth

4 Ipuh - Bantal 42,40 24 mth

5 SI MPANG RAMPA - PORI AHA 11,10 18 mth

11 BANTAL - MUKOMUKO 50,10 24 mth

13 SP RUKIS - TJ KEMUNING 56,30 24 mth

17 Sp.Gn.KEMALA - Pg. TAMPAK 36,80 24 mth

6 PS. PEDATI - KERKAP 25,00 15 mth

19 LAI S - BI NTUNAN 11,60 10 mth

15 SI BOLGA - BATAS TAPSEL 36,00 27 mth

7 I NDRAPURA - TAPAN 19,50 21 mth

8 BTS.Kt PARI AMAN-MANGGOPOH 46,80 24 mth

10 SI MPANG EMPAT - SP.AI R BALAM 61,70 24 mth

12 KAMBANG - I NDRAPURA 55,20 24 mth

14 PAI NAN KAMBANG 31,50 21 mth

16 SEBLAT I PUH 34,50 21 mth

20 LUBUK ALUNG SI CI NCI N 14,60 18 mth

21 LUBUK ALUNG KURAI TAJI 16,80 18 mth

9 RANTAU TI JANG-KOTA AGUNG 42,00 The Road has been constructed by MPW within 2011-2013. Road condition is good. Proposed to be deleted from the list of WINRIP's work program

18 MUKOMUKO-BTS SUMBAR 25,80 The Road has been constructed by MPW within 2011-2013. Road condition is good. Proposed to be deleted from the list of WINRIP's work program

Original target : 715,60 km ENVIRONMENT & SOCIAL SAFEGUARD

Revised target : 640,00 km Prequalification Detail Eng Design LARAP Study

Road Safety Owner's Estimate Appraisal & Public Consultation Procurement & Sign Contr Bid Document LARAP Implementation Preparation for Commencement of Work

Standard Biding Document

COW PROC COW PROC COW PROC CONSTRUCTION CONSTRUCTION PROC COW PROC COW PROC COW PROC COW CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION Pack

# PACKAGE NAME

2012 2013 2014 2015 2016 2017 2018

OE & BD

DED RSA & REVISED DED OE & BD CONSTRUCTION

PROC COW

Review DED & RS

Review DED & RS

Review DED & RS Review DED & RS

Review DED & RS PQ

CONSTRUCTION

Review DED & RS PQ PROC COW

Review DED & RS PQ

CONSTRUCTION COW CONSTRUCTION PROC CONSTRUCTION PQ RS Proc COW SBD CONSTRUCTION CONSTRUCTION CONSTRUCTION

DED RSA & REVISED DED OE & BD DED RSA & REVISED DED OE & BD

OE

BD DED

SBD & OE + BD

Rev-DED RS DED Rev-DED RS

Rev-DED RS

DED

COW

PROC

COW CONSTRUCTION

OE & BD DED Rev-DED RS OE & BD

OE & BD DED OE & BD

COW

CONSTRUCTION SBD & OE + BD

SBD & OE + BD

PQ PROC

PROC

CONSTRUCTION

CONSTRUCTION

DED RSA & REVISED DED

Revised : 1 June 2016

Length C'ti on

Km Peri od J N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Core Team Consultant (CTC) 40 mth IMPLEMENTATION Time extension for sevices

Design & Supervision Cslt (DSC) 42 mth IMPLEMENTATION Proposed time extension for sevices

TA for De v.of Slope Stabilization, De s ign & Manage m e nt PROCUREMENT

1 Krui - Biha 25,00 21 mth 8 Jan'14

2 Padang Sawah - Sp.Empat 40,90 24 mth 6 Jan'14

3 Manggopoh - Padang Sawah 32,00 24 mth 6 Jan'14

4 Ipuh - Bantal 42,40 24 mth 10 Jan'14

5 SIMPANG RAMPA - PORIAHA 11,10 18 mth 18 Jun'15 8 Dec'16

11 BANTAL - MUKOMUKO 50,10 24 mth 23 Feb'15 11 Feb'17

13 SP RUKIS - TJ KEMUNING 56,30 24 mth 11 Feb'17

17 Sp.Gn.KEMALA - Pg. TAMPAK 36,80 24 mth 04 Sep'15 23 Agt'17

6 PS. PEDATI - KERKAP 25,00 15 mth 11 Mar'15 31 Aug'16

19 LAIS - BINTUNAN 11,60 10 mth 11 Mar'15 CONSTRUCTION 300+125 days 08 May'16

15 SIBOLGA - BATAS TAPSEL 36,00 27 mth 20 Nov'15 06 Feb'18

7 INDRAPURA - TAPAN 19,50 21 mth 10 Dec'15 30 Agt'17

8 BTS.Kt PARIAMAN-MANGGOPOH 46,80 24 mth PROC 23 Mar'16 12 Mar'18

10 SIMPANG EMPAT - SP.AIR BALAM 61,70 24 mth

12 KAMBANG - INDRAPURA 55,20 24 mth 23 May'16 12 May'18

14 PAINAN KAMBANG 31,50 21 mth PROC

16 SEBLAT IPUH 34,50 21 mth

20 LUBUK ALUNG SICINCIN 14,60 18 mth

21 LUBUK ALUNG KURAITAJI 16,80 18 mth

Original target : 715,60 km ENVIRONMENT & SOCIAL SAFEGUARD

Revised target : 640,00 km Prequalification Detail Eng Design LARAP Study

Road Safety Owner's Estimate Appraisal & Public Consultation

Procurement & Sign Contr Bid Document LARAP Implementation

Preparation for Commencement of Work

Standard Biding Document

Review DED & RS PQ

Review DED & RS PQ

PQ

Review DED & RS Review DED & RS

PROC

CONSTRUCTION 720 days CONSTRUCTION 720 days

ICB ICB ICB ICB ICB ######### CONSTRUCTION 640 + 93 days

19-Apr-16

PROC

20-Mar-16

08-Apr-16

CONSTRUCTION 540 days CONSTRUCTION 730 + 105 days

CONSTRUCTION 730 + 75 days

CONSTRUCTION 730 + 90 days

Pack

# PACKAGE NAME

2012 2013 2014 2015 2016 2017 2018

ICB RSA & REVISED DED OE & BD

Review DED & RS

PQ RS Proc COW SBD DED OE BD DED NCB NCB DED 30-Des-17 18-Des-16 6-Nov-12 19-Jun-13 PROC PROC DED Rev-DED RS ICB ICB NCB NCB DED PROC

CONSTRUCTION 720 days

ICB

ICB

NCB NCB

NCB

Review DED & RS ICB

ICB

CONSTRUCTION

CONSTRUCTION

Rejected Bids

CONSTRUCTION 810 days

CONSTRUCTION

PROC

PROC DED

CONSTRUCTION 630 days

Review DED & RS SBD & OE + BD

RSA & REVISED DED OE & BD DED RSA & REVISED DED OE & BD

SBD & OE + BD

DED RSA & REVISED DED OE & BD

DED

IMPLEMENTATION

CONSTRUCTION

CONSTRUCTION

SBD & OE + BD

Rev-DED RS

Rev-DED RS

Rev-DED RS

PQ PROC

CONSTRUCTION 450+90 days

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 65.01 mil (26.00 %) WINRIP ACTUAL PROGRESS UP TO JUNE 2016 AND FORECAST UP TO JUNE 2018

ACTUAL June 2016

Original Forecast

Forecast Expenditure RevUSD44.50 mil (17.80%)

Forecast June 2016

Deviation = + 8.20 %

The total disbursement summary from the loan by The World Bank to the end ofJune 2016 was USD 65,009,653.87equivalent to approximately26.00%of the loan funds. The following table summarizes the individual disbursements as calculated by CTC but retaining the total disbursement fromClient Connectionat the end ofJune2016.Appendix Ashows the Overall Loan Progress Status.

Category Description

Loan Restructuring

Amount US$

Disbursement This Period

Previous Disbursement

Totals Disbursed to End June 2016

in US$

% Disbursed

1

Part 1Betterment and Capacity Expansion of

National Roads.

220,400,000.00 3,581,716.35 55,844,056.69 59,425,773.04 26.96

2 Part 2

Implementation Support 17,000,000.00 0 5,583,880.83 5,583,880.83 32.85

3

Part 3

Road Sector Institutional Development

0 0 0 0 0

4

Part 4

Contingency for Disaster Risk Response

0 0 0 0 0

Unallocated 12,600,000.00 0 0 0 0

Original Loan

Amount 250,000,000.00 3,581,716.35 61,427,937.52 65,009,653.87 26.00

Breakdown of amount disbursed during the period (June 2016) are for Statement of Work Accomplished and release of retention money for the following civil works contract packages :

• Package No 01 : MC Nos. 25 USD 512,464.00

• Package No 01 : MC Retention Money USD 372,057.43

• Package No.02 : MC Nos. 28 USD 309,376.94

• Package No.02 : MC Retention Money USD 590,926.62

• Package No.07 : MC Nos. 01 - 06 USD 194,117.96

• Package No.11 : MC Nos. 14 USD 714,231.75

• Package No.17 : MC Nos. 07 - 08 USD 537,810.38

• Package No.19 : MC Nos. 13 USD 350,731.27

[image:13.595.86.524.110.312.2]

1.3 World Bank Implementation Review Mission and Site Visit

During the month, there was no implementation review mission nor site visit.

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

As of end this reporting month, seventeen (17) out of the nineteen (19) contract packages are already procured.

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

1. 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 post qualification and International Competitive Bidding (ICB) procurement method using the Full e-Procurement System. The revised Bid Evaluation Report (BER) which was resubmitted to the Bank on 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.

Copy of No Objection Letter (NOL) has been official forwarded to POKJA on May 9, 2016 and upon POKJA s receipt of the documents, the revised Bid Evaluation Report (BER) was submitted to MPWH for final review, acceptance and confirmation of contract award to the lowest responsive bidder, PT. Lancarjaya/PT. Cahaya Tunggal Abadi.

During the month, the revised Bid Evaluation Report (BER) and contract award recommendation is still being thoroughly evaluated by the Ministry before rendering decision whether to accept and confirm POKJA s evaluation report.

2. 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.

Due to all submitted bids were not substantially responsive in particular the evaluation by POKJA where it did not conform with Chapter III IKP E.29 14g of the Instruction To Bidders (ITB) of the Bid Documents, the MPWH issued letter on April 18, 2016 (ref, no. KU 03.01-Mn/321) declaring a failure of bidding.

During the month, the Director of Road Network Development, the World Bank and the Procurement Committee (POKJA) held a special meeting June 21, 2016 to address the issues in order to avoid further delay on the implementation of the Works. It was agreed that POKJA will conduct further re-evaluation of the bids.

The bid validity expired on June 16, 2016, however, POKJA requested extension of the validity for 1.5 months or until July 31, 2016.

3. 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 in last month progress report, the Ministry of PWH issued a letter on May 3, 2016 concurring the Bid Evaluation Report (BER) and recommendation for 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.

During this reporting month of June 2016, Contract Agreement has been executed on June 1, 2016 between Pejabat Pembuat Komitmen 14 (PPK) on behalf of the Government of Indonesia (GOI), the Employeer and PT. Yasa Patria Conbloc, the Contractor, for a contract amount of Rp. 214,327,429,680 and contract time of 630 calendar days and 730 calendar days defects liability period.

Copy of the signed Contract Agreement was submitted on June 15, 2016 to World Bank requesting no objection on the agreement and issuance of Form 384 for disbursement.

The Bank pose no objection to the agrrement and issued on June 21, 2016 the Form 384.

It is expected that advance payment to the Contractor will be released anytime this coming month of July 2016 as well as the issuance of Notice To Proceed (NTP) to commence the works.

4. Package No.20 (Lubuk Alung - Sicincin) AWP-3

The sub-project is to be implemented under implementation schedule AWP-3. The Project road length 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.

During this reporting month of June 2016, Contract Agreement has been executed on June 1, 2016 between Pejabat Pembuat Komitmen 6 (PPK 6) on behalf of the Government Of Indonesia (GOI) as the Employeer and PT. Nindya Karya (Persero) Wilayah I, the Contractor, for a contract amount of Rp. 113,818,300,000 and contract period of 540 calendar days and 730 calendar days defects liability period.

Copy of the signed Contract Agreement was submitted on June 15, 2016 to World Bank requesting no objection on the agreement and issuance of Form 384 for disbursement.

The Bank pose no objection to the agreement and issued on June 21, 2016 the Form 384.

However, the Bank noted minor mistake on the Bill of Quantity, specifically the sub-total amount for Structure which should be corrected as Rp. 1,898,058,025 instead of Rp. 1,876,996,780 and to be reflected on the summary of contract amount.

It is expected that advance payment to the Contractor will be released anytime this coming month of July 2016 as well as the issuance of Notice To Proceed (NTP) to commence the works.

5. Package No.21 (Lubuk Alung - Kuraitaji) AWP-3

The sub-project is to be implemented under implementation schedule AWP-3. The Project road lenght covers 16.80 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 in last month progress report, the Ministry of PWH issued letter on May 3, 2016 accepting the Bid Evaluation Report (BER) and recommendation for award of contract to the evaluated lowest responsive bidder, PT. Multi Structure, for a corrected contract amount of Rp.126,301,990,000.

During this reporting month of June 2016, Contract Agreement has been executed on June 1, 2016 between Pejabat Pembuat Komitmen 10 (PPK) on behalf of the Government of Indonesia (GOI), the Employeer and PT. Multi Structure, the Contractor, for a contract amount of Rp. 126,301,990,000 and contract time of 540 calendar days and 730 calendar days defects liability period.

Copy of the signed Contract Agreement was submitted on June 15, 2016 to World Bank requesting no objection on the agreement and issuance of Form 384 for disbursement.

The Bank pose no objection to the agreement and issued on June 21, 2016 the Form 384.

1.5

Procurement of Consultancy Package Under Category 2 of the Revised Loan Agreement Reallocation.

Technical Assistance for Development of Slope Stabilization, Design and

Management

The Technical Assistance for Disaster Risk Reduction was canceled based on the results of meeting between DGH and the WB on October 12, 2015. It was decided to cancel the Technical Assistance and replaced by a Technical Assistance for Development of Slope Stabilization, Design and Management (under Loan Category-2).

2

PROJECT DESCRIPTION

2.1

Background

The Government of Indonesia wishes to continue strengthening of the National Road system in Indonesia while the Eastern Indonesia National Roads Improvement Project (EINRIP which is assisted by AusAID through the Australian Indonesia Partnership or AIP), is providing support program of National road and bridge improvement works in Eastern Indonesia. The Western Indonesia National Road Improvement Project (WINRIP) will provide similar support for National road and bridge in the Sumatera region of Indonesia. The focus of WINRIP will be roads administered directly by the National Government, including those currently classified as Provincial, Kabupaten (District) or non-status roads which are in process of being reclassified as National roads. In addition, provision will be made for major bridge repair works, rehabilitation, duplication and replacement as necessary to complement road betterment works.

2.2

Project Development

The loan effectiveness date for the WINRIP is 12 March 2012 and key project data is shown in the following detail.

Key Project Data WINRIP Loan No. 8043-ID

Project Cost US$350 million

Original Loan Amount US$250 million

Revised Loan Amount N/A

Board Approval Date 26 May 2011

Loan Signing Date 14 December 2011

Effectiveness Date 12 March 2012

Disbursement (as of June 30, 2016) US$ 65,009,653.87 million (26.00%)

Original Closing Date 31 December 2017

Environmental Category B-Partial Assessment

The IBRD loan amount is US$250 million. The Project is intended to finance a part of the DGH investment program for national roads with a particular focus on the Western corridor of Sumatera. The corridor is one of the three main corridors in Sumatera and connects the city of Padang (with a population of around one million) to major towns along the west coast (Bukittinggi, Sibolga and Bengkulu). It also connects through connector roads on the West coast to Medan in the northeast and to Pekanbaru in the centre of the island. The project has four components:

Project Component 1: Betterment and Capacity Expansion of National Roads

[image:19.595.85.533.71.193.2]

Table 2.1 Proposed Physical Works by DGH Program

Type of Works

AWP-1 AWP-2 AWP-3

Km USD Million Km USD Million Km USD Million

Road Betterment - - 53.10 22.77 -

-Capacity Expansion 137.10 79.70 314.60 127.67 207.60 74.58

Bridge works 0.100 1.94 - - 0.08 2.06

TOTAL

(excluding tax @ current prices) 137.20 81.64 367.70 150.45 207.68 76.65

The batches of projects are termed Annual Work Programs (AWPs) in line with terminology used in other Bina Marga projects. They are not in fact annual programs as such but rather a series of multi-year programs, each commencing in consecutive years. Hence, hereinafter it will call as just Work Programs (WPs). It is expected that implementation of the first Works Program (WP-1) will commence in the third quarter of 2013 and be completed by third quarter or late 2015. The second Work Program (WP-2) is expected to commence in early 2014 and be completed by late 2015 or middle 2016. The third Work Program (WP-3) is expected to commence in early 2015 and be completed by mid-2017. The loan will be closed onDecember 2017.

Table 2.2 presents details of the First Works Program (WP-1). The four packages in this group

[image:19.595.81.526.490.783.2]

should have been free from any land acquisition issues, but in fact two packages (Krui Biha and Manggopoh Padang Sawah) had land issues which were solved by the DGH properly. Thus, there are no foreseeable impediments to implementation.

Table2.2 IBRD Assisted WINRIP Civil Work WP-1

No Province Link No. Link Name C la ss R o a d T y p e

Road Works Bridge Works Total Cost

Fr

o

m

T

o _Len

g th T re a tm e n t C o st ( 2 0 1 0 ) No Le n g th C o st ( 2 0 1 0 ) 2 0 1 0 P ri ce s E q u iv a le n t

Km Km Km Rp mill m Rp mill Rp mill US$ mill

1 Lampung 053.0 Krui

Biha K1 IU 221.5 246.5 25.0 Bett nt

to 7 m. 148,668 148,668 16.52

2 West Sumatera 047.2 PadangSa wa SimpangE mpat

K1 IU 0.0 40.9 40.9Bett nt

to 7 m. 189,810 189,810 21.09

2a West

Sumatera 34.1

AirGadan

gBridge K1 IU

New

Bridge 1 100 17.580 17,580 1.95

3 West Sumatera 047.1 Manggop oh PadangSa wah

K1 IU 102.2 134.2 32.0Bett nt

to 7 m. 152,435 152,435 16.94

4 Bengkulu 015.3 Ipuh

-Bantal K1 IU 0.0 42.40 42.40 Bett nt

It should be noted that all road sub-projects have been subject to economic appraisal and have estimated Economic Internal Rates of Return (EIRR) in excess of 15%. These were selected for inclusion and are subject to completion of environmental and social screening, to confirm that there is no land acquisition or resettlement requirements remain outstanding.

Final Engineering Designs, Engineer s Estimates and bidding documents have been completed for all projects proposed for WP-1.

Sub-projects to be included in WP-2 and WP-3 have also been determined as listed inTable 2.3. Final Engineering Designs and Engineer s Estimates for all WP-2 and WP-3 proposed works require preparation or finalization. In the cases of some projects, preliminary Engineering Designs were prepared during Project preparation which will require review and possible amendment by the Design and Supervision Consultant prior to procurement.

The revised costs presented in Table 2.3 are planning estimates only, and the revised implementation plan is based on the Revised Implementation Timeline Schedule of the civil works.

Table2.3: IBRD Loan WINRIP Civil Work WP-2 and WP-3

NO. SUBPROJECT LINK NO. AND NAME LENGTH

(KM)

ENGINEER S ESTIMATE (RP. MILL)

WIDTH (M)

REVISED IMPLEMENTATION PLAN

START DURATION

(MONTHS)

WP-2

5. Sumut : Link No. 015.xx,

Sp. Rampa Poriaha 11.10 152,870 6.0 Mar 2015 18

6. Bengkulu : Link No. 010.0,

Ps. Pedati Kerkap 25.00 92,127 7.0 Apr 2015 15

7. Sumbar : Link No. 019.0,

Indrapura Tapan 19.50 178,600 7.0 Jan 2016 21

8. Sumbar : Link No. 024.0,

Bts. Pariaman Manggopoh 46.80 379,034 7.0 Jan 2016 24

9. Lampung : Link No. 026.1,

Rantau Tijang - Kota Agung - - - - Cancelled

10. Sumbar : Link No. 034.1,

Sp. Empat - Sp. Air Balam 61.70 515,842 7.0 Jan 2016 24

11. Bengkulu : Link No. 015.2,

Bantal Mukomuko 50.10 246,500 6.0 Feb 2015 24

12. Sumbar : Link No. 017.2,

Kambang Indrapura 55.20 451,810 7.0 Jan 2016 24

13. Bengkulu : Link No. 006.1,

Simpang Rukis - Tanjung Kemuning 56.30 316,305 7.0 Jun 2015 24

WP-3

14.

Sumbar : Link No. 017.1,

NO. SUBPROJECT LINK NO. AND NAME LENGTH (KM)

ENGINEER S ESTIMATE (RP. MILL)

WIDTH (M)

REVISED IMPLEMENTATION PLAN

START DURATION

(MONTHS)

15. Sumut : Link No. 016.0,

Sibolga - Bts. TapSel 36.00 376,479 7.0 Oct 2015 27

16.

Bengkulu : Link No. 009.4,

Seblat Ipuh, including Air Galang and Air Guntung Bridges

34.50

0.052 241,500 6.0 May 2016 21

17. Lampung : Link No. 061.1,

Sp. Gunung Kemala - Pugung Tampak 36.80 255,269 6.0 Sep 2015 24

18. Bengkulu : Link No. 015.3,

Mukomuko - Bts. Sumbar - - - - Cancelled

19. Bengkulu : Link No. 009.1,

Lais Bintuan 11.60 35,886 7.0 Apr 2015 10

20. Sumbar : Link No. 002.0,

Lubuk Alung Sicincin 14.60 116.800 7.0 May 2016 18

21. Sumbar : Link No. 027.0

Lubuk Alung Kuraitaji 16.80 65,788 7.0 May 2016 18

Project Component 2: Implementation Support

[image:22.595.93.555.64.322.2]

Tabel 2.4

Project Management Core Team Consultants (CTC)

The CTC will provide support to the PMU and DGH in the management of the Project, based in Jakarta. Their tasks include financial and progress monitoring and reporting, information management and dissemination, quality assurance and performance review for the Design and Supervision Consultants, 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.

06-20/CTC/TA/LN/8043/1112was signed on5 November 2012by bothDGHand a Joint Venture of

PT. Perentjana Djaja, Yongma Engineering Co,Ltd, and PT. Epadascon Permata Engineering

Consultant.

Design and Supervision Consultants (DSC)

A 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.

Category

Original Amount of the Loan Allocated (expressed in USD)

Revised Amount of the Loan

Allocated (expressed in

USD)

Percentage of Expenditures to be financed (inclusive of

Taxes)

(1) Civil Works under Part 1 of the

Project WP-l 220,400,000 220,400,000 70%

(2) Goods, Non-consulting Services, Consultants Services and

Incremental Operating Costs* under Part 2 of the Project

16,000,000 17,000,000 100%

(3) Goods, Non-consulting services and Consultants' Services under Part 3 of the Project

1,000,000 Cancelled Cancelled

(4) Works, Goods, Non-Consulting Services, Consultants' Services and Incremental Operating Costs* under Part 4 of the Project

0 0 0%

(5) Unallocated 12,600,000 12,600,000 100%

Project Component 3: Road Sector Institutional Development

This component which is originally intended to provide technical assistance and support to strengthen disaster risk mitigation in the road sector, including capacity building support for the new environment/risk mitigation and road safety unit of DGH has been cancelled due to revision of the loan allocation. In the meeting, DGH and World Bank agreed upon that DGH will conduct analytical work of an alternative design for road segment that pass through critical environmental assets and vulnerable areas especially on slope protection design and management. Due to deletion of the allocated funds for Category 3 of the loan agreement and reallocated to Category 2 to accommodate the implementation of slope protection design and management, into Component-2. The Loan Category restructuring can be seen inTable 2.4 page 2-5.

Project Component 4: Contingency for Disaster Risk Response

This special component will provide preparedness and rapid response to disaster, emergency and/or catastrophic events as needed. This provisional zero dollar component will be added under this project to allow for rapid reallocation of loan proceeds from other components under streamlined procurement and disbursement procedures.

2.3 Project Objective

3

CONSULTANCY SERVICES

3.1

CTC Consultants

3.1.1 Scope of Services

The CTC contract services originally were structured in its different project management elements. * Inception Phase

A key activity during the inception phase will be to establish lines of communication with PMU-WINRIP and DSC s Team Leader as well as with all Provincial Project Managers (Satkers) where the first works are to be constructed under WP-1.

* Project Management and Support to PMU, including acting DSC until the DSC is established The Terms of Reference (TOR) identify a number of sub-items to be performed by CTC. The key factor that will ensure success is that the CTC must work pro-actively and alongside PMU counterparts and with DSC team in a professional manner based on mutual respect and trust. * Preparation of Work Programs

The tendering process for WP 1 sub-projects began as soon as procurement committees have been formed and received appropriate training in the procurement procedures required. The indicative work programs and cost estimates identified for WP-2 and WP-3 are subject to verification, and are likely to change following more detailed investigations. Further preparation for WP-2 and WP-3 will be managed by the PMU supported by the CTC.

* Financial Monitoring

It will be the role of the CTC to first assess the level of understanding of the financial management, monitoring and reporting procedures by the finance staff at the provincial and central level and subsequently devise an appropriate training program and assist the PMU in training delivery.

* Project Progress and Performance Monitoring

CTC will monitor the loan project progress and prepare the report in monthly basis. In the meantime, 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. CTC will therefore first concentrate on the establishment of precise definitions, calculation methods and data collection procedures to monitor the KPIs.

* Support for the Implementation of the ACAP

* ESAMP and LARAP Implementation Monitoring

CTC will closely work with BLH and DSC and will monitor and report the action of the Environmental Management Plan on a periodical basis and/or as required.

* Training to Support Project Implementation

CTC is responsible for preparation and management of all training program required under WINRIP.

* Reporting

CTC is responsible for all reports required under the contract agreement with standardize forms, charts and tables.

3.1.2 CTC Manning

CTC professional staffs involved in the project as of end ofJune 2016are listed inTable 3.1. The International Staff ( Senior Highway Engineer, Senior Road Safety Audit Engineer and Senior Procurement Specialist) have completed their respective engagements and man-months have demoblized on March 31, 2014 and May 31, 2015, respectively.

The task of conducting final Road Safety Audit during post-construction phase which is supposed to be conducted by the Senior Road Safety Audit Engineer will be performed by the local Road Safety Audit Engineer with man-months for the task to be covered by Amendement No.4 of the Consultancy Contract.

[image:26.595.84.539.76.637.2]

Table 3.1

40.00 - - Mahbub ur

Rahman - - - - A

- 35.25 12.25 12.25 12.25 Per Weiss

Pedersen Apr-2013 Mar-2014 12,25 0,00 B

- - 23.00 23.00 44,83 C.T. Arenas Apr-2014 - 21,31 23,52

Senior Highway

Engineer 8.00 12.50 14.00 14.00 14,00

Moon, Sung

Hy ung Mar-2013 Mar-2014 14,00 0,00 C

Senior Road

Safety Audit 6.00 11.00 13.00 13.00 11,00 Cho, Woo Sung Jun-2013 Mar-2014 11,00 0,00 C

18.00 - - Wasim ur

Rahman - - - - A

- 16.00 16.00 16.00 16,00 Sanjeev Kumar

Agarwal Jan-2014 May -2015 16,00 0,00 C

40.00 9,67 9,67 9.67 9,67 Besar Awiat

Bowo Nov -2012 Sep-2013 9.67 0,00 B

- 30,33 6,66 6.66 6,66 Agus Setiawan Sep-2013 Mar-2014 6,66 0,00 B

- - 23.67 23.67 45,50 Julius J. Sohilait Apr-2014 - 27,00 18,50

36.00 7,37 7,37 7.37 7,37 Whiliy anto Nov -2012 Jun-2013 7.37 0,00 B

- 28.40 28,63 32.13 38,96 Lebiy artono Jul-2013 - 35,97 2,99

Quality Assurance

Engineer

30.00 30.00 30.00 32.00 53,83 Uray Abdul

Manaf Jul-2013 - 35,97 17,86

36.00 10.37 10.37 10.37 10,37 Uus Martawijay a Nov -2012 Oct-2013 10,37 0,00 B

- 25,63 25,63 29.13 50,96 YD Tarwanto Oct-2013 - 32,97 17,99

Environmental

Specialist 30.00 30.00 30.00 38.50 60,33 Leti Hermawati Dec-2012 - 42,43 17,90

36.00 9,37 9.37 9.37 9,37 M. Sutopo Nov -2012 Oct-2013 9,37 0,00 B

- 26,63 26,63 30.13 39,96 Witono Sep-2013 - 33,93 6,03

12.00 - - Darmansiri - - - - A

- 12.00 12.00 Muhdi - - - - A

- - 12.00 7.00 7,00 Mardiansy ah Jul-2014 Mar-2015 7,00 0,00 B

12.00 - 4.10 4.10 4,10 Rudi Rungkat Nov -2012 Mar-2015 4.10 0,00 B

- 24.00 24.00 35.40 40,23 M. Edhi Fachri Mar-2013 - 39,00 1,23

30 - - Agung Lukito - - - - A

- 25.00 25.00 34.00 55,83 Sony Thamrin May -2013 - 37,97 17,86

Community Development Officer

36.00 36.00 36.00 38.00 59,83 Yakobus Jan-2013 - 41,90 17,92

Road Safety

Audit Engineer 25.00 25.00 19.00 21.00 42,83

Adity a Moraza

Alwi Jun-2014 - 25,00 17,83

Bridge Engineer 5.00 5.00 5.00 5.00 5,00 Harimurti

Suprihantoro Apr-2013 Aug-2013 5.00 0.00 C

Training

Specialist - 12.00 12.00 25.00 30,83 Roedjitarjo Jan-2014 - 28,00 2,83

Traffic Engineer - - - 1,00 7,00 Harianto Parman Mar-2015 - 1,00 6,00 D

Remarks

A - Not able to mobilizied due to poor health or personal reasons B - Resigned due to personal reasons or poor health C - Task assigment completed

D - Intermittent assignment to update AADT

Remarks Amend

No.3

Mobilized Demob-ilized

Man - Month Used as of end of

June 2016

Man - Month Remaining Name Amend No.4 Original Contract Amend No.1 Amend No.2 Highway Engineer POSITION Team Leader Senior Procurement Specialist Assistant Team Leader

Man - Months Duration

3.1.3 CTC Contract

The CTC contract for Western Indonesia National Roads Improvement Project (Contract No.06-20/CTC/TA/LN/8043/1112) was signed on 05 November 2012. The contract is between the Government of Indonesia represented by Directorate General of Highways in the Ministry of Public Works and PT. Perentjana Djaja in joint venture with Yongma Engineering Co.Ltd. and PT. Epadascon Permata Engineering Consultant.

The Notice To Proceed was issued by letter dated 6 November 2012 from the PPK, and the official starting date of the contract was set at 6 November 2012.

Likewise, Amendment No. 1 to the original contract was signed on 25 October 2013 to cover all requirements of the CTC are summarized below.

* Replacement of the Senior Procurement Specialist

* Extending the assignment of the Senior Highway Engineer.

* Extending the assignment of the Senior Road Safety Audit Engineer.

* Extending the assignment of the Procurement Specialist 2 and replacement of the Procurement Specialist 1.

* Adding the new position of Bridge Engineer. * Adding the new position of Training Specialist, and * Adding the new position of Road Safety Engineer.

Amendment No. 2 to the Original Contract and Amendment No. 1 was signed on September 3, 2014 to cover requirements of CTC are enumerated as follows :

* Additional / Modification to Terms of Reference (TOR) * Amendment to the Team Composition and Staffing Schedule * Replacement of Foreign and Local Consultants

* Adjustments of Remuneration paid in foreign currency and local currency * Adjustment inputs of personnel

* Modification to various reimbursable and provisional sum to match the actual requirement Amendment No.3 to the current CTC Contract (Original Contract and Amendments 1 and 2 was signed on November 30, 2015 which is in line with the Updated Timeline Bar Schedule taking into consideration the current and look ahead situations of the WINRIP program.

Based on the current progress of the Project, the services of several local professional and sub-professional staff have been extended beyond the end of the respective dates of completion assignments under Amendment No. 2.

Amendment No.3 covers the requirements of CTC are as follows : * Amendment to the team composition and staffing schedule * Adjustment of inputs of personnel

* Adjustment of remuneration paid in local currency * Adding the new position of Traffic Engineer

* Modification to various reimbursable to match the actual requirements.

Amendment No. 4 to the current CTC Contract (Original Contract and Amendements 1, 2 and 3) was signed on March 4, 2016 and to expire or completed on December 31, 2017, the same date as the expiry/closing date of the loan agreement.

Based on the current progress of the Project, services of professional international and local staff as well as local sub-professional staff have been extended beyond their respective dates of assignment engagement covered by Amendment No. 3.

Amendment No.4 covers the requirements of CTC are as follows : * Consultancy services time extension

* Additional/Modification to TOR/Terms of Reference

* Adjustment of input schedule for Professional Staff, Sub Professional and Supporting Staff * Amendment to the Team Composition

* Amendment of the Staffing Schedule * Modification to the Provisional Sums

* Adjustment of Remuneration paid in foreign currency and local currency * Adjustment to the reimbursable expenses

* Amendment to Clause 6.1(b) of the Special Condition of Contract

Proposed Amendment No.5 To the current CTC Contract will cover the following requirements of CTC :

* Adjustment of input schedule for professional staff, sub-professional and supporting staff. * Amendment of Staffing schedule.

* Adjustment of remuneration covered by Special Conditions of the Contract, Clause 6.2 (a). * Adjustment of cost estimates for foreign and local curriencies.

[image:28.595.79.511.621.773.2]

Presented inTable 3.2is the current status of CTC contract.

Table 3.2

Description USD IDR

Original Contractincluding 10% VAT 1,404,370 23,556,940,000

Amendment No.1including 10% VAT 1,447,517 24,668,792,500

Variance Against Original Contract +3,07% +4,72%

Combine Variance Against Original Contract +4.12%

Amendment No. 2including 10% VAT 1,509,117 24,704,544,150

Variance Against Original Contract +7,46% +4,87%

Description USD IDR

Amendment No.3including 10% VAT 1,473,917 26,328,054,500

Variance Against Original Contract +4.95% +11.76%

Combine Variance Against Original Contract +9.29%

Amendment No. 4including 10% VAT 1,918,158 40,878,169,529

Variance Against Original Contract +36.58% +73.53%

Combine Variance Against Original Contract +60.12%

Amendment No. 5including 10% VAT *1,914,495 *42,383,898,477

Variance Against Original Contract *36.32% *79.92%

Combine Variance Against Original Contract *64.10%

* Tentative, pending approval of Amendment No. 5.

Note :Combine variance (USD+IDR) is based on 1 USD = Rp. 9,558 exchange rate used during the time of signing the original Contract Agreement.

3.2

DSC Consultants

The Design and Supervision Consultant (DSC) is responsible to design of WP-2 and WP-3 civil works and supervision of all civil works. They will assume 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 is 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 is being contracted and managed by DGH through the Bina Marga Regional Office (Balai II), and is being based in Padang, West Sumatera.

DSC has been established in Balai II Padang following the contract signing on 11 June 2013 between Balai II and Renardet SA in joint venture with PT. Cipta Strada, PT. Daya Creasi Mitrayasa, PT. Seecons and PT. Yodya Karya. The Notice To Proceed was issued by the Balai II on 19 June 2013.

[image:29.595.77.497.47.226.2]

Shown inTable 3.3is the present status of the Design Supervision Consultant (DSC) contract.

Table 3.3

Description USD IDR

Original Contract plus 10% VAT 902.660 57,000,575,500

Addendum No.1 plus 10% VAT *1,147,190 *60,541,139,347

Variance Against Original Contract *+27.09% *+6.21%

Note :

1) Draft Addendum No.1 is still subject to approval by DGH with World Bank concurrence and issuance of No Objection Letter (NOL).

3.3

Technical Assistance for Development of Slope Stabilization, Design and

Management

4

CIVIL WORKS

4.1

Detailed Design Preparation

Final Engineering Designs, Engineer s Estimates and bidding documents have been completed for all projects proposed for WP-1, WP-2, WP-3.

A brief status of the nineteen (19) sub-projects relative to the procurement of Civil works contracts and implementation can be found in Implementation Status table onPage 1-1 of thisReport. While progress of road safety audit are shown inAppendix B.

4.2 Procurements

Procurement shall be conducted under the Bank s Procurement Procedures as mentioned in the Loan Agreement. The International Competitive Bidding (ICB) based on the Bank letter Ref. WINRIP/136 will apply to the packages with the construction estimated cost of more than US$ 25 Million to comply with the new Bank s threshold for ICB. According to the GOI regulation, a prequalification shall be applied for the packages with the construction estimated cost more than IDR 10 Billion. Review from previous procurement process, the World Bank in the Aide Memoire requested to GOI, for next 4 ICB subprojects qualification still used Pre-Qualification and for remaining sub-project must be process with Post Qualification. As well as for all NCB the World Bank also requested to follow Post Qualification in procurement process.

As of this reporting month (June 2016), a more detailed current updates are fully indicated in

Sub-Chapter 1.4 Procurement of Civil Works Contract Under Category 1onPage 1-5of thisReport.

Under Category 3 of Loan Agreement the three (3) consultancy packages (capacity building for disaster risk reduction, environmental management and road safety) has been cancelled. As a result of the cancellation of the three (3) Technical Assistance, the Technical Assistance for Development of Slope Stabilization, Design and Management has been included as replacement, but to be part of the Loan Category-2 ;

Procurement update of the new consultancy package can be found inSub-Chapter 1.5 Procurement of

Consultancy Package Under Category 2onPage 1-8of thisReport.

The WINRIP updated Procurement Plan and Progress are shown inAppendix F.

4.3 Civil Works Implementation

As of end of this reporting month (June 2016), five (5) of contract packages are completed and currently under defects liability period for twenty four (24) months effective on the day the TOCs were issued.

Nine (9) packages are on-going construction, while three (3) sub-projects are awaiting the issuance of Notice To Proceed (NTP) to commence the Works.

[image:32.842.52.800.81.473.2]

Table 4.1

Program

Contract Package

#

Contractor Name of Road Province Contract

Signed Commence ment of Work Original Time Extension Revised Contract Amount Contract Time Completion

Date Contract Amount

Contract Time

Completion Date

AWP-1

1 PT. Jaya Konstruksi_{Manggala Pratama Tbk} Biha - Krui Lampung Nov 25,

2013 Jan 8, 2014 134,909,211,000 640 CD Oct 9, 2015 93 CD 140,255,020,000 733 CD Jan 10, 2016

2

PT.Jaya Konstruksi Manggala Pratama Tbk

Padang Sawah Sp. Empat including Air Gadang

West

Sumatera Dec 6, 2013 Jan 6, 2014 197,936,699,000 730 CD Jan 5, 2016 105 CD 249,348,931,000 835 CD

Apr 19, 2016

3 PT. Jaya Konstruksi

Manggala Pratama Tbk

Manggopoh Padang Sawah

West

Sumatera Dec 6, 2013 Jan 6, 2014 143,688,963,000 730 CD Jan 5, 2016 75 CD 183,940,872,000 805 CD

Mar 20, 2016

4 PT. Waskita Karya and PT.

Mulya Turangga (JO) Ipuh - Bantal Bengkulu

Nov 14,

2013 Jan 13, 2014 186,936,750,000 730 CD Jan 12, 2016 90 CD 196,438,084,000 820 CD

Apr 11, 2015

AWP-2

5 PT. Nusa Konstruksi

Enjiniring Tbk.

Sp. Rampa -Poriaha North Sumatera March 17, 2015 June 18,

2015 107,321,260,310 540 CD Dec 8, 2016 - -

-6 PT. Waskita Karya (Persero)

Tbk. Ps. Pedati - Kerkap Bengkulu

Feb 27, 2015

Mar 11,

2015 86,517,470,000 450 CD Jun 2, 2016 - -

-7 PT. Adhi Karya Indrapura Tapan West

Sumatera

Nov 26, 2015

Dec 10,

2015 129,699,900,000 630 CD

Aug 30,

2017 - -

-8 PT. PP/PT. Statika Mitra_{Sarana J.O} Bts. Kota Pariaman_{- Manggopoh Sumatera}West Jan 28, 2016 Mar 23, 2016

355,500,000,000 _{720 CD} Mar 12,

2018 - -

-11 PT. Hutama Karya/PT. Daya

Mulya J.O. Bantal Mukomuko Bengkulu Dec 18, 2014 Feb 23, 2015

228,899,717,000 _{720 CD} Feb 11,

2017

-262,611,303,000 _-

-12 PT. Lancar Jaya/PT. Cahaya

T.A. J.O

Kambang Indrapura

West

Sumatera Jan 28, 2016

May 23, 2016

358,650,400,000

720 CD May 12,

2018 - -

-13 PT. Waskita Karya (Persero) Tbk.

Sp. Rukis TJ.

Kemuning Bengkulu

Dec 18, 2014

July 22,

2015 292,700,000,000 720 CD

July 10,

2017 - -

-AWP-3

14 PT. Yasa Patria

Perkasa/Conbloc, JO Painan Kambang

West

Sumatera Jun 1, 2016

NTP still to

be issued 214,327,429,680 630CD

Stil to

determined - - -

-15 PT. Pembangunan

Perumahan (Persero) Sibolga Bts. Tapsel North Sumatera July 13, 2015 Nov 20,

2015 260,100,000,000 810 CD Feb 6, 2018 - -

-17 PT. Jaya Konstruksi

Manggala Pratama Tbk

Sp. Gunung Kemala

Pugung Tampak Lampung

Nov 17,

2014 Sept 4, 2015 199,551,000,000 720 CD

Aug 23,

2017 - -

-19 PT. Roda Tekindo Purajaya Bintunan - Lais Bengkulu Feb 27,

2015

Mar 11,

2015 33,689,452,000 300 CD Jan 4, 2016 125CD 44,419,760.000 425CD May 8, 2016

20 PT. Nindya Karya Lubuk Alung_{Sicincin Sumatera}West Jun 1, 2016 NTP still to_{be issued} 113,818,300,000 540CD _determinedStil to - - -

-4.4 Civil Works Progress

Activities done during this month were repair and restoration of deteriorated existing pavements, roadway excavation, embankment formation, spreading of granular pavement for roadway widening, asphalt paving, structural works, construction of stone masonry side ditches, stockpiling of raw material, production of crush aggregates, other minor works, bridge construction, finalization of Field Engineering surveys and mobilization of resources of the newly started contract package.

The four (4) contract packages under implementation program AWP-1 were not completed on the original target dates of completion, however, time extensions ranging from 75 to 105 calendar days were granted extending the completion dates at the earliest on January 10, 2016 and the latest on April 19, 2016.

Previously, three (3) of the contract packages has already been fully completed and recently handed and taken over by the Client, while the remaining other contract package under AWP-1 still to be issued TOC subject completion of back-up document.

Under the implementation program AWP-2 and AWP-3, there are currently nine (9) contract packages that are on-going construction implementation. Physical progress of four (4) of the packages are lagging far behind schedule with negative slippages ranging from -14.37% to -40.10% while progress for the other five (5) packages are still slightly on or behind schedule.

One (1) contract package covered by AWP-3 has been completed. Issuance of Taking Over Certificate is still to be issued subject to completion of back-up documents.

Generally, with the exception of the four (4) contract packages with huge negative slippages, the civil works implementation is fairly in the right direction.

Progress status of the on-going civil works contracts as of this reporting period are shown inTable 4.2. Following are brief status of the on-going construction contract packages :

Package No. 1 : Biha Krui

The contract package is substantially completed on January 20, 2016 and provisionally handed over to the Employeer.

Currently under Defects Notification Period until after two (2) years reckoned from the issuance of the TOC.

A more detailed previous status during the whole duration of the contract implementation of this Package is presented inANNEX P-I Executive Summary Report.

Package No. 2 : Padang Sawah Sp. Empat (Including Air Gadang Bridge)

The contract package is substantially completed on April 19, 2016 and provisionally handed over to the Employeer.

Currently under Defects Notification Period until after two (2) years reckoned from the issuance of the TOC.

ANNEX P-2 Executive Summary Reportpresent a more detailed status during the whole duration of the

[image:34.842.50.810.83.491.2]

Table 4.2

Program

Contract Package

#

Contractor Name of Road

Target Progress Schedule Ending

June 2016

Actual Progress

Accomplished Slippage

Time Elapsed

Remaining

Time Remarks

AWP-1

1 PT. Jaya Konstruksi

Manggala Pratama Tbk Biha - Krui * - - -

-Completed PHO : Jan 20, 2016

2

PT. Jaya Konstruksi Manggala Pratama Tbk

Padang Sawah Sp.Empat incl.Air Gadang

* - -- -

-Completed PHO : April 19, 2016

3 PT. Jaya Konstruksi Manggala Pratama Tbk

Manggopoh Padang

Sawah * - - -

-Completed PHO : Mar 17, 2016

4 PT. Waskita Karya and PT.

Mulya Turangga (JO) Ipuh - Bantal 100% 94.53% -5.47% -

-TOC still to be issued

AWP-2

5 PT. Nusa Konstruksi

Enjiniring Sp. Rampa - Poriaha 66.93% 26.83% -40.10% 69.20% 166 CD

Based on original contract time and schedule

6 PT. Waskita Karya Tbk Ps. Pedati Kerkap 61.32% 41.52% -19.80% 87.57% 67 CD Based on original contract

time and schedule

7 PT. Adhi Karya Indrapura - Tapan 4.18% 4.75% +0.57% 31.48% 431 CD Based on original contract

time and schedule

8 PT. PP/PT. Statika Mitra J.O

Bts. Kota Pariaman

Manggopoh 0.31% 2.37% +2.06% 13.07% 625 CD

Based on original contract time and schedule

11 PT. Hutama Karya/ PT.

DMT Mukomuko - Bantal 66.39% 56.74% -9.65% 67.87% 236 CD

Based on original contract time and revised schedule

12 PT. Lancarjaya/PT. Cahaya

T.A. JO Kambang Indrapura 0.50% 0.44% -0.06% 5.61% 687 CD

Based on original contract time and revised schedule

13 PT. Waskita Karya

(Persero) Tbk

Sp. Rukis Tj.

Kemuning 47.87% 18.25% 29.63% 47.15% 380 CD

Based on original contract time and schedule

AWP-3

15 PT. Pembangunan

Perumahan (Persero) Sibolga Bts. Tapsel 19.96% 5.59% -14.37% 26.95% 591 CD

Based on original contract time and schedule

17 PT. Jaya Konstruksi Manggala Pratama Tbk

Sp. Gn Kemala Pg.

Tampak 18.21% 16.99% -1.23% 41.03% 424 CD

Based on original contract time and schedule

19 PT. Rodatekindo Purajaya Lais - Bintunan 100% 99.11% -0.89% - - Completed. TOC still to be

issu