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Republic of Indonesia 

Ministry of Public Works 

Directorate General of 

Highway 

T H E E A S T E R N I N D O N E S I A 

N A T I O N A L R O A D I M P R O V E M E N T 

P R O J E C T ( E I N R I P ) 

AIP LOAN NO: AIPRD - L002 

ANNUAL PROGRESS REPORT 

2010 

PROJECT MANAGEMENT UNIT 

(PMU-EINRIP)

In accordance with Section III.A.3 (a) of Schedule 2 of the AIPRD-L002 loan agreement for 

Eastern Indonesia National Road Improvement Project (EINRIP), this report, prepared by 

Project Management Unit (PMU-EINRIP) is the 2010 Annual Progress Report. 

The report describes the progress achieved in various phases of project implementation during 

the year 2010; and presents a general plan for activities for the year 2011. 

Any comments and feedback should be directed to: 

PMU EINRIP 

Direktorat Bina Program 

Direktorat Jenderal Bina Marga 

Jl. Pattimura No. 20, Kebayoran Baru 

Jakarta Selatan 

Email: pmu.einrip@yahoo.com

EINRIP 2010 Annual Progress Report 

1 TABLE OF CONTENTS 

Abbreviations 

EXECUTIVE SUMMARY ......................................................................................................... 1 

1. Introduction ....................................................................................................................... 5 

1.1. Background ............................................................................................................... 5 

1.2. EINRIP Loan AIPRD L-002 ....................................................................................... 5 

1.3. Loan categories ......................................................................................................... 6 

1.4. Project Planning, Administration and Management ................................................. 11 

1.5. Terminology for Annual Works Program (AWP) ...................................................... 13 

2. Project Preparation (Feasibility Studies, Investigations and Design) ......................... 14 

2.1. Project Preparation Consultants (PPC) ................................................................... 14 

2.2. Documentation completion under PPC .................................................................... 14 

3. Project Preparation (Environmental & Social Studies) ................................................ 16 

3.1. Extent of ESS Studies in EINRIP............................................................................. 16 

3.2. Summary Progress on ESS for 2010 ....................................................................... 17 

4. Procurement of Civil Works ........................................................................................... 23 

4.1. EINRIP Procurement Activities ................................................................................ 23 

4.2. Procurement Activities in 2010 ................................................................................ 24 

4.3. Procurement Plans .................................................................................................. 27 

5. Implementation of Civil Works (Construction) ............................................................. 29 

5.1. Summary of On-going Contracts ............................................................................. 30 

6. Procurement of Goods ................................................................................................... 31 

6.1. Contract Data for Goods Contract ESB-02 .............................................................. 31 

7. Financial Summary ......................................................................................................... 32 

7.1. Status of Loan Withdrawals, Payments and Disbursements .................................... 32 

7.2. Analysis of Planned Vs Actual Expenditure ............................................................. 34 

7.3. Foreign Exchange Rate Variation ............................................................................ 35 

7.4. Impact of Exchange Rate on Total Project Cost ...................................................... 35 

8. Implementation Support Consultants ........................................................................... 36 

8.1. Project Management Support Consultant (PMSC) .................................................. 36 

8.2. Regional Supervision Consultants (RSC) ................................................................ 37 

8.3. Project Advisory Services (PAS) Consultants .......................................................... 38 

9. Technical and Financial Audits in 2010 ......................................................................... 40 

9.1. Technical and Financial Audit Consultants .............................................................. 40 

9.2. Key issues identified in TFAC Audits ....................................................................... 40


9.3. Recommendations of TFAC Audits ......................................................................... 41 

9.4. Follow-up of TFAC Audit ......................................................................................... 41 

10. Project Administration and Management ................................................................ 43 

10.1. HIV/AIDS Campaign................................................................................................ 43 

10.2. Implementation of Anti Corruption Action Plan (ACAP) ........................................... 43 

10.3. Project Management Manual ................................................................................... 45 

10.4. Coordination Meetings in 2010 ................................................................................ 46 

10.5. Management Action Plan (MAP) ............................................................................. 48 

10.6. M & E Annual Surveys ............................................................................................ 48 

10.7. FIDIC Training and Workshops ............................................................................... 49 

11. Loan Extension ......................................................................................................... 51 

LIST OF APPENDICES 

APPENDIX 1 Summary of ESS Studies at December 2010 

APPENDIX 2 Procurement Plan Approved in 2010 – Version 5 and 6 

APPENDIX 3 Status of Procurement Plan at 31 December 2010 

APPENDIX 4 

Contract Data Sheets of Ongoing Civil Works 

(Status on 31 December 2010) 

APPENDIX 5 

APPENDIX 6 

Payment Monitoring Table for Loan Categories 

Performance Indicators for 2010 ACAP Audit 

APPENDIX 7 Minutes of Joint Management Meeting No. 6 

APPENDIX 8 Management Action Plan Approved in January 2010 

LIST OF FIGURES 

Figure 1-1 EINRIP Project Location Map ............................................................................. 8 

Figure 1-2 EINRIP – Implementation Arrangements .......................................................... 12 

Figure 7-1 Cumulative Monthly Expenditure to Dec 2010 .................................................. 34 

Figure 7-2 S-curve for Expenditure of Special Account ..................................................... 34 

Figure 7-3 Trend of Exchange Rates ................................................................................. 35 

Figure 7-4 Project Cost changes on Variable Exchange Rate ........................................... 35


LIST OF TABLES 

Table 1-1 Loan Financing Table ......................................................................................... 6 

Table 1-2 List of EINRIP Packages .................................................................................... 7 

Table 4-1 Packages with Procurement Completed by end of 2010 .................................. 24 

Table 5-1 List of Projects Commenced by end of Dec 2009 ............................................. 29 

Table 5-2 List of projects awarded of NOL (Disbursement) .............................................. 30 

Table 7-1 Payments Processed in 2010 ........................................................................... 33 

Table 7-2 EINRIP Cumulative Payments up to 31 December 2010 .................................. 33 

Table 10-1 List of packages for 2010 ACAP Audit .............................................................. 45 

Table 10-2 Summary Evaluation of 2010 ACAP Audit ........................................................ 45 

Table 10-3 List of 2010 M&E Surveys ................................................................................ 49 

Table 11-1 Loan Amendment Changes .............................................................................. 52 

Table 11-2 Loan Amendment Changes .............................................................................. 52


ABBREVIATIONS 

ACAP 

AIPRD 

AMDAL 

AusAID 

AWP 

Bina Marga 

Dit Bintek 

Dit Bipram 

EINRIP 

ESS 

FMR 

GOI 

IBRD, WB 

ICB 

LARAP 

MOF 

MPW 

NOL 

P2JJ 

PAS 

PC 

PMM 

PMSC 

PMU 

PPC 

RSC 

SLARAP 

SRIP 

TOR 

UKL 

UPL 

BLHD 

Anti-Corruption Action Plan 

Australia-Indonesia Partnership for Reconstruction and Development 

Analisa Mengenai Dampak Lingkungan – Environmental Impact Assessment 

Process 

Australian Agency for International Development which administers AIP, AIPRD 

Annual Work Programme 

Directorate General of Highways within the Ministry of Public Works (DGH) 

Directorate of Technical Affairs within DGH 

Directorate of Planning within DGH 

Eastern Indonesia National Roads Improvement Project 

Environmental and Social Safeguards 

Financial Monitoring Report – quarterly expenditure report and cash forecast for 

six months 

Government of Indonesia 

International Bank for Reconstruction and Development – World Bank 

International Competitive Bidding 

Land Acquisition and Resettlement Action Plan 

Ministry of Finance 


No Objection Letter 

Perencanaan dan Pengawasan Jalan dan Jembatan – Road and Bridge Design 

and Supervision Unit 

Procurement Advisory Services 

Procurement Committee 

Project Management Manual 

Project Management Support Consultant 

Project Management Unit (to be qualified by Project name, e.g. PMU-EINRIP) 

Project Preparation Consultant 

EINRIP Regional Supervision Consultant 

Simplified LARAP 

Strategic Roads Infrastructure Project (World Bank funded) 

Terms of Reference 

Upaya Pengelolaan Lingkungan – site specific Environmental Mitigation Plan 

Upaya Pemantauan Lingkungan – site specific Environmental Monitoring Plan 

Balai Lingkungan Hidup Daerah


EXECUTIVE SUMMARY 

The Government of Indonesia and the Government of Australia through the Australia-Indonesia 

Partnership for Reconstruction and Development (AIPRD) has committed loan funds of A$300 

million to the Eastern Indonesia National Road Improvement Project (EINRIP) for road and 

bridge improvement works across nine provinces in Eastern Indonesia. The Government of 

Indonesia has pledged the equivalent of A$33 million to the program. 

Loan Number : AIPRD L-002 

Loan Signing : 7 September 2007 

Loan Effectiveness : 4 March 2008 

Loan Closing date : 1 June 2011 

The main objective of EINRIP is to improve National links to an acceptable standard of service 

and accessibility. A major focus of EINRIP is the minor widening and improvement including 

limited capex (capacity expansion) of about 400 km of roads in Eastern Indonesia which have 

been reclassified as National roads. The program is also funding the replacement of a limited 

number of steel bridge superstructures. 

Mobilization of 3 Implementation Support Consultants 

The project preparation services of PPC Consultants concluded in April 2009. 

Procurement of implementation support consultants commenced in early 2008 and by the end 

of 2008, three consultants were awarded the contracts, as follows: 

1. Regional Supervision Consultants (RSC), contract signed on 26 November 2008, services 

for 39 months 

2. Procurement Advisory Services Consultants (PAS), contract signed on 28 October 2008, 

services for 18 months 

3. Project Management Support Consultants (PMSC), contract signed on 9 December 2008, 


In 2010, all three consultants continued on the project, except for PAS consultants who were 

demobilised on 30 November 2010. 

Number of Civil Works Packages 

24 packages were finally selected for EINRIP program in middle of 2008. In 2009, four 

packages in South Kalimantan province; EKS-03, EKS-04, EKS-05 and EKS-06 were removed 

from EINRIP program due to lack of funds for land acquisition and this was agreed in principle 

by DGH and AusAID. 

In 2010, 20 packages were considered under EINRIP. 

Detailed Design of Civil Works 

Design for all packages was finalized and completed before demobilization of PPC in April 

2009. 

Environmental and Social Studies of Civil Works 

By end of 2010, from the 20 packages under EINRIP: 

Environmental studies were not required for 6 packages (EBL-02, ESS-01, ESS-02, EKB-01, 

EKS-01 and EKS-02). 

Project Management Unit (PMU-EINRIP) Page 1


Environmental studies (UKL/UPL) for 11 packages were completed in 2008 and 2009 (EBL- 

01, ESH-01, ESU-01, ENB-01AB, ENB-01C, ENB-02, ENB-03, ENT-01, ESR-01, ESR-02 

and ESS-03). 

For ESS-04, ESS-05, ESS-06 in South Sulawesi, ANDAL, RKL, RPL was approved by the 

AMDAL Commission and signed by South Sulawesi Governor on 1 October, 2010. The 

process is deemed completed, except for issue of NOL from AusAID, expected in January 

2011. 

Land Acquisition 

Of the 20 packages now listed under EINRIP: 

There was no land acquisition required for 2 packages. 

EBL- 01 EBL- 02 

Land acquisition for 7 packages was complete by end of 2009. 

ESU- 01 EKB- 01 ENB- 01AB ENB- 01C ENB- 03 

ESR- 01 ESS- 02 

Land acquisition for another 7 packages was complete by end of 2010. 

ENB-02 ESR-02 ESS-01 EKS- 01 EKS- 02 

ESH-01 

ENT-01 

For remaining 4 packages, land acquisition process is on-going. 

ESS- 03 ESS- 04 ESS- 05 ESS- 06 

Procurement of Civil Works 

In 2008 and 2009, 5 contracts were signed and construction commenced in 2009. 

Contracts were awarded and signed for 7 additional packages in December 2009 and 

another contract (ESH-01) was signed on 25 May, 2010 and construction commenced. 

Four contracts were awarded and signed in 2010 and the NOL for Contract and 

Disbursement was issued by the end of December 2010 for all of them. 

In summary, construction commenced on 13 packages by the end of 2010, while another 4 

packages will commence construction in 2011. 

Bid for ESS-04 was called on 21 September, 2010 and was under evaluation at end of 2010. 

Bidding for 2 packages (ESS-05 and ESS-06) will commence in 2011. 

Implementation of Civil Works 

Construction had commenced on 13 packages by the end of 2010. The summary of progress is 

as follows: 

Package 

EBL-01 

EBL-02 

EKB-01 

Location 

Bali 

Tohpati – Kusamba 

Bali 

Tohpati – Kusamba Stg 2 

West Kalimantan 

Pontianak - Tayan 

Commencement 

Date 

Physical Progress 

31-December-2010 

Planned Actual Deviation 

Financial 

Progress 

25 Feb 2009 96,35 % 74,26 % 22.09 % 62.2% 

1 Mar 2010 30.01 % 32.64 % + 2.63 % 36.6% 

24 Jul 2009 71.02 % 66.45 % - 4.56 % 62.5% 



Package 

ESU-01 

ENB-01AB 

ENB-01C 

ENB-02 

ENB-03 

ESR-01 

ESR-02 

ESS-01 

Location 

North Sulawesi 

Molibagu - Mamalia - 

Taludaa 

West Nusa Tenggara 

Sumbawa Besar Bypass 


Pal IV - Km 70 


Km 70 - Bts. Cadbin 

Dompu 


Bts. Cadbin Dompu - 

Banggo 

South East Sulawesi 

Tinanggea - Kasipute 


Bambaea - Sp. Kasipute 

South Sulawesi Sengkang 

- Impa Impa - 

Tarumpakkae 

ESS-02 South Sulawesi Bantaeng - 

Bulukumba 

ESH-01 Central Sulawesi Lakuan – 

Buol 

Commencement 

Date 




Financial 

Progress 

1 Mar 2010 29.50 % 8.63 % - 20.87 % 18.1% 

5 Jun 2009 81.30 % 54.03 % - 27.28 % 50.6% 

1 Mar 2010 27.70 % 8.53 % - 19.16 % 18.8% 

6 Apr 2010 41.63 % 5.22 % - 36.41 % 16.7% 

1 Mar 2010 15.84 % 6.50 % - 9.34 % 19.7% 

13 Jul 2009 73.74 % 26.86 % - 46.88 % 33.9% 

30 Apr 2010 21.14 % 14.07 % - 7.07 % 25.4% 

1 Mar 2010 21.11 % 11.51 % - 9.60 % 18.3% 

15 Oct 2009 57.50 % 17.20 % - 40.31 % 24.4% 

7 October 2010 3.19 % 3.38 % + 0.19 % 12.9% 

Project Financial Status (December 2010) 

Cumulative Advances to Special Account till 31 December 2010: A$ 91.27 million 

Balance on 31-Dec-2010 A$ 24.344 million 

Cumulative expenditure to Dec-09 from loan: A$ 66.924million 

Cumulative expenditure to Dec-09 from GOI: A$ 7.662 million 

EINRIP Loan Budget Plan and Actual (A$ million) 

350,00 

300,00 

286,37 

294,24 298,49 

300,66 302,32 302,61 

273,56 

250,00 

242,14 

200,00 

Proc. Plan 

Actual 

150,00 

100,00 

66,92 

50,00 

- 

HIV/AIDS awareness campaign 

During March/April 2010, it was decided the component of HIV/AIDS Awareness Program will 

be added to the consultancy contract of Regional Supervision Consultants (RSC) through an 

addendum. BCEOM (RSC Consulting firm) invited proposals covering all 20 packages from the 



shortlisted firms/consultants provided by DGH and has completed the evaluation of proposals. 

The contract with the NGO (Yayasan Kusuma Buana) was signed on 8 November 2010. The 

first campaign will commence in Bali on packages EBL-01/EBL-02 in January 2011. 

Technical and Financial Audits (TFAC) 

The independent Technical and Financial Audits, financed by AusAID, were conducted for five 

packages in 2010 and identified a number fop key areas that need improvement. 

Project Management Manual 

The revision of the PMM is well advanced with comments from PMSC, PAS and RSC 

incorporated in the proposed revisions. The Draft revision is under review by DGH. 

Implementation of ACAP 

The 2010 ACAP audit was planned in September-November 2009 and prior to audit, BPKP 

coordinated with PMU and Inspectorate General of MPW to develop the performance indicators 

for evaluation of ACAP implementation. 

The audit was conducted as planned and report was published by BPKP in December 2010. 

Monitoring & Evaluation Surveys 

The 2010 M&E surveys were carried out under the supervision of PMSC between June - August 

2010 in the provinces of Bali, NTT, West Kalimantan, South Sulawesi and South Kalimantan. 

Coordination Meetings in 2010 

Six-monthly Joint Management Meeting No. 6 was held on 24 August 2010. 

The second 3-monthly Progress Coordination Meeting involving all Satkers/PPK for Civil 

Works and RSC was held on 18 February 2010. 

A total of eight Monthly Coordination Meetings were held in 2010. 

Management Action Plan (MAP) 

As part of extension to the EINRIP loan closing date, DGH prepared a Management Action Plan 

(MAP) to strengthen the existing institutional and procedural arrangements to expedite 

completion of ESS studies, procurement and early commencement of construction contracts. 

The final version of MAP was formally approved by AusAID on 16-Feb-10 and the MAP 

reporting has been done regularly. A total of eleven (11) MAP Reports have been prepared by 

PMU since Feb 2010. 

Loan Extension 

During the 6th JMM held on 24 August 2010, it was agreed in principle by AusAID and GOI that 

the EINRIP Loan Closing date will be extended from 1 June 2011 to 31 March 2013. The loan 

extension explanatory note and supporting analysis for this was finalised in 2010 and will be 

submitted to Bappenas and Ministry of Finance (MOF) in early 2011. 

Formalisation is expected by March 2011. 



1. Introduction 

1.1. Background 

The Australian Indonesia Partnership for Reconstruction and Development (AIPRD) is 

administered by the Australian Agency for International Development (AusAID), on behalf of 

Government of Australia (GOA) in partnership with the Government of Indonesia (GOI). 

The primary objective of this partnership is to support Indonesia‟ s reconstruction and 

development efforts, with an emphasis on economic and social reform. As part of AIPRD, both 

governments have committed loan funds (A$300 million) to the Eastern Indonesia National 

Road Improvement Project (EINRIP). 

The project development objective is: 

“To support regional economic and social development in Eastern Indonesia by 

improving the condition of the national road network.” 

EINRIP will support a program of National road and bridge improvement projects, with major 

focus on roads recently upgraded to National roads from previously provincial or non-status 

roads. The main objective is to improve road links to an acceptable standard to ensure that the 

National road network provides acceptable standards of service and accessibility, and is 

capable of supporting local and regional economic development. 

Approximately 4,300 km of roads are affected, of which around 400 kilometers will be upgraded 

and rehabilitated under this project. The project also includes supply, fabrication and delivery of 

seven types of steel truss bridges, between 30-60 meters span, and covering a total length of 

895 meters. 

1.2. EINRIP Loan AIPRD L-002 

The salient features of the EINRIP loan are: 

a. Loan Number : AIPRD - L002 

b. ID Project : 21594001 

c. Total Project Value : AUD 330 million 

d. AusAID Loan portion : AUD 300 million 

e. GOI Loan portion : AUD 30 million (as sharing for the applicable tax 

payment under EINRIP project) 

f. Loan negotiation : 3 July 2007 

g. Loan Signing : 7 September 2007 

h. Loan Effectiveness : 4 March 2008 

i. Implementation Period : 2008 - 2012 

j. Loan Closing date : 1 June 2011 (Extension proposed - 31 March 2013) 

k. Executing Agency : Directorate General of Highways (DGH) 



l. Treatment Length : About 400 km roads and 3504 meters of bridges 

m. Treatment Type : Betterment of existing road with widening, road 

capacity expansion; and replacement and rehabilitation 

of bridges 

n. Provinces in project : Bali, West Kalimantan, South Kalimantan, South East 

Sulawesi, South Sulawesi, North Sulawesi, Central 

Sulawesi, NTB (Nusa Tenggara Barat) & NTT (Nusa 

Tenggara Timur) 

1.3. Loan categories 

The EINRIP loan categories and financing plan is shown in Table 1-1. 

Category 

GOA (A$m.) GOI (A$m.) Total 

Physical 

Share 

% 

Physical 

VAT 

Share 

% 

A$m. 

1. Civil Works 

National Roads 229.7 89% 28.6 2.9 11% 261.2 

Sub Total 229.7 28.6 2.9 261.2 

2. Goods 

Bridge Trusses 9.9 89% 1.2 0.1 11% 11.3 

Equipment 0.3 89% - - 11% 0.3 

Sub Total 10.2 1.3 0.1 11.6 

3. Incremental Operating Costs 

PMU 0.7 89% 0.1 0.01 11% 0.8 

Sub Total 0.7 - - 0.8 

4. Consultants’ services 

Project Management Support 6.3 100% - - 0% 6.3 

Regional Supervision 17.0 100% - - 0% 17.0 

Procurement Advisory Services 1.2 100% - - 0% 1.2 

Sub Total 24.5 - - 24.5 

5. Unallocated 

Physical Contingencies 11.5 100% - - 0% 11.5 

Price Contingencies 23.4 100% - - 0% 23.4 

Sub Total 34.9 - - 34.9 

TOTAL LOAN-RELATED COST 300.0 30.0 3.0 333.0 

Land Acquisition 0.0 0% 26.1 2.6 100% 28.7 

Training and Workshops 0.0 0% 1.0 0.1 100% 1.1 

TOTAL 100% GOI COST 0.0 27.1 2.7 29.8 

1.3.1. Civil Works 

Table 1-1 

Loan Financing Table 

The scope of the Civil Works includes the following components: 

• Betterment treatments including minor widening on inter-urban roads; 

• Improvements to bridges on existing selected links; 

• A road dualisation project in Bali province; and 



• A steel truss bridge replacement program for existing deteriorated bridges in Eastern and 

Western Indonesia. (included under Goods Category) 

The roads have been selected after earlier feasibility studies conducted by Project Preparation 

Consultants (PPC), engaged by AusAID through the Grant funds. 

The packages comprise civil works contracts, with construction period varying between 18-24 

months and 12 months defects notification period. 

The list of packages is shown in Table 1-2; and location map is shown in Figure 1-1. 

CIVIL WORKS 

No. Name Province Length 

1 EBL- 01 Tohpati – Kusamba Bali 10.79 km 

2 EBL- 02 Tohpati – Kusamba Stage 2 Bali 8.21 km 

3 ESH- 01 Lakuan – Buol Central Sulawesi 16.23 km 

4 ESU- 01 Molibagu – Taludaa North Sulawesi 5 bridges (490 m) 

5 ENB- 01AB Sumbawa Bypass NTB (Sumbawa) 11.20 km 

6 ENB- 01C Sumbawa Pal IV – Km 70 NTB (Sumbawa) 31.79 km 

7 ENB- 02 Km 70- Bts. Cabdin Dompu NTB (Sumbawa) 14.09 km 

8 ENB- 03 Bts. Cabdin Dompu – Banggo NTB (Sumbawa) 23.62 km 

9 ENT- 01 Ende – Aegela NTT 15.60 km 

10 ESR- 01 Tinanggea – Kasipute South East 

Sulawesi 

11 ESR- 02 Kasipute – Bambaea South East 

Sulawesi 

12 ESS- 01 Sengkang – Impa Impa – 

Tarumpakkae 

South Sulawesi 

33.77 km 

23.93 km 

24.18 km 

13 ESS- 02 Bantaeng – Bulukumba South Sulawesi 26.88 km 

14 ESS- 03 Jeneponto – Bantaeng South Sulawesi 25.84 km 

15 ESS- 04 Bulukumba – Tondong South Sulawesi 20.74 km 

16 ESS- 05 Bulukumba – Tondong South Sulawesi 19.96 km 

17 ESS- 06 Bulukumba – Tondong – Sinjai South Sulawesi 24.52 km 

18 EKB- 01 Pontianak – Tayan West Kalimantan 31.50 km 

19 EKS- 01 Martapura – Ds. Tungkap South Kalimantan 18.89 km 

20 EKS- 02 Banjarmasin – Bts. Kalteng South Kalimantan 12.90 km 

21 EKS- 03 Jl AYani (Martapura – Ds.Tungkap) 

22 EKS- 04 Ds.Tungkap – Rantau 

23 EKS- 05 Barabai – Mantimin 

24 EKS- 06 Mantimin – Dahai 

GOODS 

In discussions between GOI and AusAID 

in latter half of 2009, it has been 

indicated that these four packages are 

likely to be dropped. 

1 ESB- 02 Prefabricated Steel Bridges Various 895 m 

Table 1-2 

List of EINRIP Packages 



Figure 1-1 

EINRIP Project Location Map 



1.3.2. Goods 

The Goods category comprises of two parts: 

i) Acquisition of pre-fabricated steel truss bridge material; and replacement program for 

selected deteriorated bridges in Eastern and Western Indonesia; and 

ii) Provision of communications and office equipment for Project Management Unit (PMU). 

Procurement of Goods valued at A$300,000 or more is to be under International Competitive 

Bidding (ICB) and that under A$300,000 through National Competitive Bidding (NCB). 

1.3.3. Incremental Operating Costs (IOC) 

This loan category provides to fund the costs of incremental expenses incurred by the Central 

and Provincial level units and the PMU in the carrying out activities of the Project, including staff 

travel and per diem, communications, consumables, web page operation and maintenance, 

advertisement of bidding, printing and publication of Project information etc. but excluding 

Government staff salaries, allowances and honoraria. 

1.3.4. Implementation Support 

Implementation support is provided to ensure efficiency in implementation and overall quality of 

the Civil Works. Amongst others, three separate consultancy services were identified. These are 

100% financed by the loan. 

a. Project Management Support Consultants (PMSC) 

The PMSC provides support to the PMU and DGH in management of the Project. PMSC is 

managed by the Directorate of Planning and directly works under Project Management Unit 

(PMU) under the Directorate. PMSC is based in Jakarta and functions include: 

Provide full support to the PMU in the exercise of all its functions. 

Establish and maintain the relevant financial monitoring systems. 

Develop a monthly Project Progress Report that satisfies the needs of all stakeholders, 

and ensure the timeliness and accuracy of all reports. 

Undertake an independent performance monitoring of the effectiveness of construction 

supervision, including monitoring the effectiveness of environmental management 

procedures, and compliance with the ESS. 

Provide assistance as required with the establishment of anti-corruption measures 

necessary to support the project, and monitor and report their effectiveness. 

Monitor the general quality of procurement activities and make recommendations on 

improvement of standards. 

Support Implementation of Environmental and Social Safeguards (ESS) and assist the 

PMU to ensure that all environmental and social safeguards required are properly 

applied, and report regularly on this activity. 

Provide administrative support for the conduct of post-implementation surveys of project 

performance, using previously-prepared guidelines and procedures. 

Support the implementation of the proposed DGH training program. 



Support the PMU‟ s reporting requirements and assist with the preparation of the 

Borrower‟ s Project Completion Report. 

b. Regional Supervision Consultant (RSC) 

Regional Supervision Consultant (RSC) is responsible for construction supervision of all 

Civil Works and designated the role of “Engineer” under the FIDIC-based contract. 

RSC is managed by DGH through the Directorate of Roads and Bridges, Eastern Region, 

including supervision of packages in Metropolitan areas. The team is based in Makassar, 

with all field supervision teams to be established at project locations. Major tasks of RSC 

include: 

Provide training for RSC staff focusing on contract administration and construction 

supervision tasks. 

Carry out an assessment of the training needs and develop a training plan that details 

training modules, target audience, implementation schedules etc. 

Prepare and maintain Quality Assurance Plan that will show clearly the procedures that 

will be used to ensure that consistently high standards of construction supervision are 

maintained across all contracts. 

Validate and Update Designs. 

Establishment of testing laboratory in Makassar that can be operated fully independently 

from the project site laboratories. 

Supervision of Civil Works. 

Monitoring and management of environmental and social safeguards, and ensure that 

the provisions of the Specification and the Contract are fully observed by contractors 

during works implementation. 

Support financial and progress reporting. 

c. Procurement Advisory Services (PAS) 

The Procurement Advisory Services Consultant (PAS) provide support to the civil works 

Procurement Committees established in the Provincial Satker for each contract package. 

The primary objective of the PAS is to help ensure that the procurement of civil works 

proceeds smoothly in accordance with all the applicable guidelines and regulations. 

The team is based in Jakarta and managed by DGH through the Directorate of Roads and 

Bridges, Eastern Region, including procurement of packages in Metropolitan areas. 

The functions of the PAS include: 

Review all arrangements made to support project procurement, including the “readiness” 

of the Procurement Committees, adequacy of facilities, equipment and materials; 

suitability and feasibility of the proposed Procurement Schedule for each contract, and 

all related matters. 

PAS will report to DGH and to AusAID on the readiness of the Committees and its 

supporting arrangements to initiate procurement. 

Provide procurement training for Procurement Committees to ensure familiarity with the 

procurement process required by all stipulated guidelines and regulations, 



Monitor the establishment and use of the “semi” e-procurement system for EINRIP‟ 

Provide support for the publication on the official project website and posting elsewhere 

of all required information and documents, 

Develop measures/protocols to help detect and prevent collusive/fraudulent/ corrupt/ 

coercive practices in the bidding process 

Provide support to the procurement committee for the evaluation of bids, including 

monitoring the validity of bid bonds, guarantees and other instruments, 

Monitor each PIU and Procurement Committee‟ s adherence to the Procurement 

Schedule, 

Support the PMU and Procurement Committees to ensure that the provisions of the 

ACAP are fully complied with. 

1.3.5. Unallocated 

The unallocated amount in the Loan covers physical and price contingencies. Physical 

contingencies allow for increases in quantities to achieve Project objectives. Price contingencies 

allow for the effect of inflation on the cost of works contracted in later years. Unallocated 

amounts are not available for the project without specific allocation to a Loan category. 

1.4. Project Planning, Administration and Management 

The EINRIP project has put in place a number of initiatives and mechanisms for efficient 

management of the program. These are briefly described below: 

1.4.1. Establishment of Steering Committee and Project Management Unit (PMU) 

The Directorate General of Highways (DGH) within MPW is the Executing Agency (EA) for the 

Project. An inter-agency Steering Committee chaired by BAPPENAS‟ Deputy for Infrastructure 

and including representatives from the Ministry of Finance (MoF) and Ministry of Public Works 

(MPW) is responsible for policies relating to Project implementation. 

DGH has established a Project Management Unit (PMU-EINRIP) that is chaired by the Director 

of Planning in DGH. The PMU-EINRIP is responsible for coordination of all EINRIP activities. 

PMU monitors project status, prepares Financial Monitoring Reports, manages effective 

implementation of provisions specified in ACAP and monitors performance of RSC and PAS. 

PMSC is the consultant supporting PMU. 

DGH Directorate of Eastern Region (DJJWT) manages the RSC and PAS services. 

The implementation of Civil Works is carried out by the Contract Officer within Specific Work 

Units for Construction (Satker / SNVT Pembangunan Provinsi). They manage procurement and 

implementation of works and administer civil works contracts as the Employer. 

Figure 1-2 presents the organization structure for the project during implementation. 



DGH – Executing Agency 

AUSAID 

Directorate of Planning 

Head of PMU 

Directorate of Roads & 

Bridges 

Eastern Region 

(DJJWT) 

Directorate of Freeways 

& Urban Roads 

(DJBHJK) 

Bina Marga Regional 

Balai Offices/ 

Metropolitan 

EMU 

Coordination 

PMU-EINRIP 

Officer-in-Charge 

Procurement 

Committee 

For Works 

Satker for the 

Works 

“Employer” 

Project Management 

Support Consultants 

PMSC 

Monitor 

Procurement 

Procurement Advisory 

Services 

PAS 

Regional Supervision 

Consultants 

RSC 

CONTRACT 

Monitor 

Supervision 

RSC Team Leader 

“The Engineer” 

Implementation Support Consultants 

“Contractor” 

Figure 1-2 

EINRIP – Implementation Arrangements 

1.4.2. Project Management Manual (PMM) 

The EINRIP loan agreement provided for commitment by the GOI for adoption and 

implementation of project activities through a Project Management Manual. The Manual sets 

out: 

Project management information and reporting systems and procedures, including the 

financial management information system; 

Financial management plan, including budgeting, disbursements, accounting and 

reporting requirements of Project finances, and audit procedures; 

Procurement regulations, procedures and requirements; 

Provisions of the Environmental and Social Safeguards, 

Provisions of the Anti-Corruption Action Plan; 

Training programs and workshops; and 

Arrangements for Monitoring and evaluation. 

The first version of PMM was approved and released in September 2008. 

1.4.3. Improved Engineering Design and Bidding Documentation 

In EINRIP preparation, two significant changes were introduced i.e. detailed engineering design 

process and use of FIDIC based bidding documents. 

The project uses World Bank‟ s Standard Bidding Documents including the Multilateral 

Development Bank Harmonised version of FIDIC. The Team Leader of the Regional 

Supervision Consultant has been designated as the “Engineer” with the responsibilities and 

authorities clearly defined with the aim to improve construction quality. 

During EINRIP preparation, appropriate field investigations have been carried out in addition to 

full topographic survey. This has enabled detailed road and drainage design for both roads and 

bridges with special attention on drainage design. Integration of environmental impacts into 

detailed design has been ensured. 



1.4.4. Anti Corruption Action Plan (ACAP) 

The Anti-Corruption Action Plan (ACAP) for EINRIP has been developed to ensure that the 

project‟ s goal of road improvement is not compromised by corruption and malpractice. The 

ACAP has been adopted by GOI as a legally binding commitment, ensuring that anti-corruption 

measures are an integral part of the implementation of EINRIP. The key features of the EINRIP 

ACAP are: 

Key project documents and updated reports on financial and technical aspects of project 

implementation, complaints handling mechanism and results, and audit results will be 

publicly available, including on the EINRIP website and dissemination by email and post, 

to allow for monitoring and oversight of the project by a broad range of stakeholders. 

Strengthened supervision and audit mechanismas have been put in place. This includes 

appoitinting RSC as the Engineer and financial and technical audits. 

Measures to increase the efficiency and accountability of procurement processes, 

including the use of a Procurement Agent for the selection of consultancy services and 

Procurement Advisory Services (PAS) for the selection of civil works contractors, and 

improvement of MPW‟ s existing e-procurement system. 

The PMU is responsible for ensuring the ACAP is properly implemented and for revising the 

Project Management Manual on an annual basis to incorporate necessary improvements to 

processes and procedures. 

1.5. Terminology for Annual Works Program (AWP) 

At the start of EINRIP project, separate batches of projects were prepared and implemented 

using the term “Annual Work Programs (AWPs)”. These were separate groups of projects that 

could be implemented in sequential manner, e.g. AWP1, Batch 1 included projects that were 

planned to be ready for implementation by mid-2007; AWP-2 implementation by mid 2008, etc. 

This term AWP was consistently followed in project preparation and reporting documentation. 

However, in early 2009, the use of „AWP‟ as reference was gradually reduced. At end of 2009, 

the projects in EINRIP program are 20 in total and as such the term AWP is no longer used. 



2. Project Preparation (Feasibility Studies, Investigations and 

Design) 

The preparation work for EINRIP has been more extensive than the earlier donor funded 

projects. AusAID directly procured the Project Preparation Consultants, and funded the 

resources to produce detailed engineering design. 

The preparation work encompassed adequate levels of field and soils investigation and full 

topographic survey. Final Engineering Design provided for both roads and bridges with special 

attention on drainage design. Design Integration ensured that a range of environmental matters 

are included in the final approved design. 

2.1. Project Preparation Consultants (PPC) 

Project preparation for EINRIP, including all feasibility studies and final engineering design of 

identified works, was directly funded by Grant Funds from the AIPRD financing facility, and 

Project Preparation Consultants (PPC) were appointed in March 2006. 

The scope of services of PPC included: (Source: PPC Final Report March 2009) 

Review of background information to develop an understanding of the extent and 

location of road and bridge deficiencies. 

Develop a short list of road corridors to be examined for potential inclusion in the road 

and bridge program. 

Develop environmental and social guidelines to be used in the planning, design and 

implementation of the works. 

Carry out field investigations to identify road and bridge candidates and potential 

betterment works. 

Carry out feasibility assessment of the candidate projects 

Prepare final engineering designs of selected roads and bridges sub-projects, 

Prepare specifications and bidding documents for the works. 

Carry out environmental and social studies and provide monitoring and assistance 

during the land acquisition process. 

The PPC team comprised URS Australia supported by ARRB, Louis Berger, VicRoads, PT. 

Dacrea Mitrasaya and PT. Perentjana Djaja. 

The project preparation commenced in March 2006 and after the initial review of background 

information the initial planning commenced and was completed in early 2007. 

The detailed design of all packages commenced in late 2006 and the design activity achieved 

full completion in April 2009. All engineering designs were legalized by BinTek (Directorate of 

Technical Affairs) and environmental integration into road design was also legalized by SubDit 

Environment in BinTek. 

2.2. Documentation completion under PPC 

With completion of design preparation activities, the following documents for all EINRIP 

packages were also available at end of April 2009: 

Design Specification 



Design Specification provided a consistent approach to the provision of the field 

investigation, design and documentation for roads and bridge works. The Design 

Specification Document was revised towards the end of the EINRIP project preparation and 

was edited to focus the document on the specific requirements for investigations and design 

of road betterment projects. 

Design Reports 

Each design report provided a summary of the project features, existing alignment and the 

details on the field investigations, topographic survey and design for both road and bridge 

improvement through rehabilitation. The works on new bridges were covered by a separate 

bridge design report. 

Legalisation of Design 

Full legalisation required the approvals for preliminary design; final highway and bridge 

design; Bill of Quantities; and legalisation of integration of environmental aspects in the 

detailed design. 

Standard Drawings 

Costed Bill of Quantities 

The estimated cost report were prepared including the cost estimating process and reviewed 

with Bina Marga. 

Preparation of Bid Documents 

After legalisation and AusAID concurrence, complete sets of documents were prepared, 

including: 

a) Highway Drawings 

b) Bridge Drawings 

c) Standard Drawings 

d) General Specification 

e) Special Specifications (if any) 

f) General and Particular Conditions 

g) Other bidding documents 

After demobilization of PPC, no further work on design was carried out, except for issue of 

standard drawings in the bidding documents and minor revisions to the BOQ and subsequent 

impact on Engineer‟ s and Owner‟ s Estimate. 



3. Project Preparation (Environmental & Social Studies) 

The environmental approach in EINRIP project preparation has been developed to ensure that 

environmental and social safeguards are covered comprehensively throughout the planning, 

design, implementation and monitoring activities. 

After close consultation between Bina Marga and AusAID, a Guideline for Implementation of 

Environmental and Social Safeguards (ESS) was prepared that evolved through a series of 

meetings and reviews of draft documents until final agreement was achieved jointly between 

AusAID and Bina Marga in mid 2007. 

All EINRIP sub-projects have been identified and prepared in full compliance with the provisions 

of the ESS. 

Environmental Studies 

There are two levels of environmental studies required for road and bridge subprojects. 

The higher level is Environmental Impact Assessment, referred to as an AMDAL (Analisis 

Mengenai Dampak Lingkungan Hidup). The lower level is an Environmental Monitoring and 

Management Plan, UKL/UPL (Upaya Pengelolaan Lingkungan Hidup dan Upaya 

Pemantauan Lingkungan). Based on defined threshold, the environmental Screening 

process determines what triggers the need for an AMDAL or a UKL/UPL. 

Land Acquistion Studies 

Where land acquisition is required or where there is displacement of existing occupants or 

users of land, a Land Acquisition and Resettlement Action Plan (LARAP) is to be prepared. 

The LARAP could be full LARAP of a Simplified LARAP (SLARAP). 

3.1. Extent of ESS Studies in EINRIP 

Two packages (EBL-01 and EBL-02) did not require land acquisition. 

Land acquisition continued in 2009 and the process was completed for following packages by 

end of 2009. 

ESU- 01 ENB- 01AB ENB- 01C ENB- 03 ESR- 01 

EKB- 01 ESS- 02 EKS-01 (Simplified LARAP) 

At start of 2010, the remaining ESS studies covered following packages: 

Study Nos Packages 

AMDAL 

2 studies for 

5 packages 

ESS-04, 05, 06 (1 study) 

EKS-05, 06 (1 study) 

LARAP 10 ESH- 01 ENB- 02 ENT- 01 ESR- 02 

ESS- 01 ESS- 03 ESS- 04 ESS- 05 

ESS- 06 EKS- 02 



In 2010, it was generally agreed between Bina Marga and AusAID that the four packages in 

South Kalimantan will be removed from the EINRIP program, primarily due to funding shortfall 

for construction and no confirmed source of funding for land acquisition. 

3.2. Summary Progress on ESS for 2010 

The progress of ESS activities during 2009 is presented below. 

The status of environmental and Social Safeguards Studies is shown in Appendix 1. 

1. EBL-01: Tohpati - Kusamba, Bali Province 

UKL/UPL required for bridge components was completed and approved by DGH and 

BLHD/Bapedalda by June 2008. However, the UKL/UPL was only for bridge components 

based on Regulation of the Minister of Environment No. 14/2010 on activities that already 

have Business License but do not have Environment Document. This package should 

now have DPLH/EMD (Dokumen Pengelolaan Lingkungan Hidup/Environmental 

Management Document) which should be prepared by proponent with time limit of 

October 2011. 

Land acquisition: There was no land required for this package. 

2. EBL-02: Tohpati - Kusamba Section, Bali Province 

Initially, the project only required Standard Operation Procedure (SOP). However, based 

on Regulation of the Minister of Environment No. 14/2010 on activities that already have 

Business License but do not have Environment Document, this package should have 

DPLH/EMD (Dokumen Pengelolaan Lingkungan Hidup/Environmental Management 

Document) which should be prepared by proponent with time limit by October 2011. 

Land acquisition: There was no land required for this package. 

3. EKB-01: Pontianak - Tayan, West Kalimantan Province 


on Regulation of the Minister of Environment No. 14/2010 on Activities that already have 



Document) which should be prepared by proponent by October 2011. 

Land acquisition: Process of land acquisition is complete, and LARAP monitoring report 

completed and submitted. Land certification is under process by Local Government (for all 

land affected by project in Kabupaten Sanggau and Kubu Raya) and will be monitored in 

2011. 

4. ENB-01AB: Sumbawa Besar Bypass, NTB/West Nusa Tenggara Province 

UKL/UPL was required, has been completed and approved by DGH and BLHD/Bapedalda 

in August 2008. 

Land acquisition: Process is complete, LARAP monitoring report completed and 

submitted. Land certification process is complete by Local Government (only for land 



affected by project with certified right of ownership), but the data has not been received by 

PMU. Further investigation and completion will follow in 2011. 

5. ENB-01C: Pal IV - Km 70, NTB/West Nusa Tenggara Province 


in December 2008. 

Land acquisition: process in now complete and LARAP monitoring report completed and 

submitted in December 2009. Land certification is planned by Local Government (only for 

land affected by project with certified right of ownership) and will be monitored in 2011. 

6. ENB-02: Km 70 - Bts. Cabdin Dompu, West Nusa Tenggara Province (NTB) 


in December 2008. 

Land acquisition: LARAP monitoring report was completed and submitted in December 

2009. All PAPs for this project have received compensation. Three (3) PAPs have been 

compensated on behalf of beneficiaries and four (4) PAPs were compensated through 

village head in Ds. Penginapan Pindang. LARAP completion report is complete. Land 

certification is planned by local government (only for land affected by project with certified 

right of ownership) and will be monitored in 2011. 

7. ENB-03: Bts. Cabdin Dompu - Banggo, West Nusa Tenggara Province (NTB) 

UKL/UPL was required, has been completed and approved by DGH and 

BLHD/Bapedalda. 

Land acquisition: Process of land acquisition is now complete and LARAP monitoring 

report completed and submitted in December 2009. Land certification is planned in 2010 

by Local Government (only for land affected by project with certified right of ownership) 

and will be monitored in 2011. 

8. ESR-01: Tinanggea – Kasipute, South East Sulawesi Province 

UKL/UPL was required, has been completed and approved by DGH and BLHD in 

February 2009. 


submitted. Land certification is planned in 2010 by each Local Government (for all land 

affected by project in Kab Bombana and only for land affected by project with certified 

right of ownership in Kab Konawe Selatan) and will be monitored in 2011. 

9. ESR-02: Bambae - Kasipute, South East Sulawesi Province 


in September 2008. 

Land acquisition: Final LARAP Monitoring Report of this package was completed in April 

2010; however evidence of land acquisition from 2 PAPs is still outstanding. It has been 

requested from the LG in early May 2010 and datasets for 10 PAP have been presented 



so far. The final evidence for the 2 remaining PAPs was collected from the Kabupaten by 

the PPK and provided for verification. Land certification is planned in 2011. 

10. ESU-01: Molibagu - Mamalia - Taludaa, North Sulawesi Province 

The project required only UKL/UPL, which was completed and approved by August 2008. 

Land acquisition: The acquisition compensation of this project was only for trees and 

building, while for land is through donation. There are only 16 People affected by the 

Project. Hence this project required only a Simple LARAP (SLARAP). SLARAP process is 

complete, and Simple LARAP Monitoring Report completed on December 2008. No 

program of certification for land affected by project. 

11. ENT-01: Ende - Aegela, East Nusa Tenggara Province 

The project required only UKL/UPL, which was completed and approved by March 2009. 

Land acquisition: LARAP and pleno meeting has finished. Evidence of payment is 

complete and a Final Monitoring Report was submitted to PMU in June 2010, for further 

submission to AusAID. The report was accepted by AusAID on 20 July 2010. 

12. ESH-01: Lakuan - Buol, Central Sulawesi Province 

The project required only UKL/UPL, which was completed and approved by March 2008. 

Land acquisition: LARAP has finished. The Draft LARAP Monitoring Report was sent to 

PMU/EMU in June 2010 and this was formally sent to AusAID by DGH on 13 August 

2010. After the review, AusAID issued acceptance of the report for compliance with the 

ESS guidelines on 25 August 2010 and NOL for Contract and Disbursement was issued 

on 25 August 2010 as well. Land certification is planned in 2010/2011 by local 

government for all land affected project and will be monitored in 2011. 

13. ESS-01: Sengkang - Impaimpa - Tarumpakke, South Sulawesi Province 



Business License but do not have Environment Document, this package should now have 


Document) which should be prepared by proponent with time limit of October 2011. 

Land acquisition: LARAP is finished and payment process has finished. Comparison of 

compensation payment evidence to PAP with the LARAP‟ s list of approved PAP shows 

that all PAPs have been paid compensation expect for seven in land dispute cases, which 

is being proposed an appeal in court therefore no decision on land disputes in 2010. 

Further investigation and completion will follow in 2011. However, the parties involved in 

the dispute have indicated that they will not obstruct the road construction and that the 

winner of the dispute case will receive the compensation. LA monitoring report was 

completed in December 2009. Land certification is planned in 2010 for all land affected 

project and will be monitored in 2011. 



14. ESS-02 : Bantaeng - Bulukumba, South Sulawesi Province 





Document) which should be prepared by proponent with by October 2011. 


submitted. Land certification is planned in 2010 by each Local government (for all land 

affected by project in kab Bulukumba and only for land affected by project with certified 

right of ownership in Kab Bantaeng) and will be monitored 2011. 

This package has commenced work since mid of October 2009, and still under 

construction work. Unfortunately there are no longitudinal drainage proposals, and 

proposed to discharge road drainage from outlet onto adjacent private land. Therefore it 

was thought by RSC that further land acquisition required, however they tried to develop 

an alternative that requires very little land or absolutely no land required. 

15. ESS-03: Janeponto - Bantaeng, South Sulawesi Province 

The project required only UKL/UPL, which was completed and approved by July 2009. 

Land acquisition: There are 1,187 people affected by project. LARAP and pleno meeting 

is finished. LG is in process of compensation payment. In Bantaeng, all PAPs (124 

households) have been paid, and evidences have been submitted to Satker. In 

Jeneponto, compensations have been paid for land and building. However, there are 16 

mosques and there is one PAP who has six lots of land, that has not been fully paid for 

land and building. The LG of Jeneponto has received additional funds from the Province 

of South Sulawesi around IDR 82 million to complete the land acquisition process. 

Subsequently, completion LARAP monitoring report will be submitted by end of January 

2011 after data is completed. 

16. ESS-04, ESS-05 & ESS-06: Bulukumba – Tondong – Sinjai, South Sulawesi Province 

There is one AMDAL for three packages. Final Draft ANDAL-RKL-RPL documents have 

been submitted and formally commented on by the AMDAL Commission at BLHD 

Makassar in May 2010. The AMDAL Consultant has revised ANDAL-RKL-RPL documents 

incorporating their comments. The final documents have been sent on 27 September 

2010, and have been approved by the Governor. These documents have been submitted 

to Bintek and PMU on October 1st, 2010. 

Land acquisition: In Bulukumba Regency (ESS-04 and ESS-05), pleno meeting has 

finished (20 July 2010) and LARAP revised report was submitted by DGH to EMU – 

AusAID on 12 August 2010. Proposal for delivering payment to peoples affected project 

has submitted to Satker/SNVT, unfortunately compensation fund from APBN-P 2010 

cannot be disbursed due to lack of data from LG of Bulukumba. Completion data is being 

prepared by LA Committee, and LARAP monitoring report will be submitted after data is 

completed. 

In Kab Sinjai (ESS-05 and ESS-06), a pleno meeting was held and finished on 29 

September 2010. LARAP revised report has been submitted to PMU and EMU. Local 

government has proposed data of peoples affected project who should receive payment of 



compensation. Unfortunately, compensation fund from APBN-P 2010 cannot be disbursed 

due to lack of data from LG Sinjai. Completion data is being prepared by LA Committee, 

and LARAP monitoring report will be submitted after data is completed. 

17. EKS-01: Martapura - Ds. Tungkap, South Kalimantan Province 


on Regulation of the Minister of Environment No. 13/2010 on Environmental Management 

Effort and Environmental Monitoring Effort, this package should have SPPL/SEMM (Surat 

Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup/Statement 

letter of readiness on Environmental Management and Monitoring). 

Land acquisition: Data of evidence payment was completed in May 2010. LARAP 

monitoring report has been finished and submitted. There is no program of land 

certification for this package. 

18. EKS-02: Banjarmasin - Bts. Kalteng, South Kalimantan Province 


on Regulation of the Minister of Environment No. 13/2010 on Environmental Management 

Effort and Environmental Monitoring Effort, this package should have SPPL/SEMM (Surat 

Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup/Statement 

letter of readiness on Environmental Management and Monitoring). 

Land acquisition: The Kabupaten LA team carried out appraisal of land, buildings, and 

trees. Land measurement and verification by BPN finished during August 2010. During 

survey by BPN, discrepancy was noted between PMSC measurements. To clarify this and 

to streamline the compensation process, PMSC Environmental Specialist and Highway 

Engineer visited Kabupaten Barito Kuala and held coordination meeting with Land 

Acquisition Committee. There is now agreement on measurements, as the cause of 

discrepancy was different ROW widths and different perception of ROW maps scale. 

The LG has completed payment process by end of September 2010 for building. Payment 

evidence has been submitted to PMSC. Monitoring Report completed and submitted. 

Land certification is planned in 2011 for all land affected project by local government and 

will be monitored. 

19. EKS-03: Jl. A. Yani (Martapura - Ds. Tungkap), South Kalimantan Province 

UKL/UPL was required, has been completed and approved by DGH and BLHD in May 

2009. 

Land acquisition: The preparation of the LARAP documents was completed on April 2009. 

There is no process of compensation payment, because no budget for land acquisition. 

This package has been removed from the EINRIP. 

20. EKS-04: Ds. Tungkap - Rantau, South Kalimantan Province 

UKL/UPL was required, has been completed and approved by DGH and BLHD in April 

2009. 



Land acquisition: LARAP documents and pre-plenum has been finished. There is no 

process of compensation payment, because no budget for land acquisition. This package 

has been removed from the EINRIP. 

21. EKS-05 and EKS-06: Ds. Barabai - Mantimin - Dahai, South Kalimantan Province 

There are two packages (EKS-05 and EKS-06) that require Environmental Impact 

Assessment/AMDAL. TOR of EIA (KA-ANDAL) has been discussed with BLHD 

Kabupaten Tapin in November 2009 and waiting for approval. 

Land acquisition: There are 4,584 people affected by project, LARAP and Pre Pleno 

meeting was finished. Process of compensation payment is not yet available, because 

there is no budget for land compensation. This package has been removed from the 

EINRIP. 



4. Procurement of Civil Works 

The Procurement Advisory Services (PAS) consultancy was initially scheduled to start work in 

the middle of 2008. However, due to delays, the final contract was signed on December 2008. 

The PAS team then mobilised and was on board by start of 2009. In the interim, the PPC 

Consultants provided the interim procurement services for second half of 2008. 

4.1. EINRIP Procurement Activities 

The procurement for civil works for EINRIP is undertaken by DGH, through Procurement 

Committees (PC) which are appointed under the Provincial Work Unit for Road Construction 

(Satker Pembangunan Jalan) in each involved province. 

Broad responsibilities of PC include: 

Finalising the bidding documents 

Preparing the procurement schedule 

Advertising the tender 

Uploading essential information to the internet for E-procurement 

Opening and recording the tenders 

Evaluation and post qualification of the bids 

Preparing the bid evaluation report 

The role of PAS is to provide ongoing assistance at key points and if possible help speed up the 

process. 

Review all arrangements made to support project procurement, including the “readiness” 

of the procurement committee; 

Ensure that World Bank Guidelines are followed in the procurement; 

Provide procurement training and capacity building; 

Assist PC in responding to queries and clarification sought by bidders before bid opening 

date; 

Oversee implementation of measures/protocols to avoid fraud and collusion in bidding; 

Attend bid opening for all procurement exercises and certify the Minutes of Bid Opening 

and any clarification of bids; and 

Provide a report to DGH on each procurement exercise. 

The approval of the Minister of Public Works is required for award of contracts over Rp. 50 

billion. 

AusAID undertakes prior review and approval of all civil work procurement and issue No 

Objection Letters (NOLs) at three key stages of the procurement process: 

NOL to start Procurement; 

NOL for Contract Award (Bid Evaluation Report); and 

NOL for Contract and Disbursement. 



In addition, AusAID NOL is also required for: 

NOL for Addendum to Bidding Documents; and 

NOL for holding Pre-Bid Meeting. 

4.2. Procurement Activities in 2010 

Following on from the procurement activities in 2009, where a total of 12 contracts were 

awarded, in 2010, total five contracts were awarded and bidding process for one package ESS- 

04 was ongoing at end of 2010. 

Conditional NOL to start procurement was issued for packages ESS-05 and ESS-06 in 

December 2010. 

Summary of contracts awarded by end of 2010 is presented in the following Table 4-1, and the 

summary of procurement activities (for active packages for 2010) is also presented. 

No. 

Package No. 

NOL 

Procurement 

Invitation for 

Bids Date 

Bid Opening 

Date 

NOL Award 

Contract 

Signature 

Date 

NOL 

Disbursement 

Civil Works awarded in 2009 

1 EBL-01 4-Aug-08 6-Aug-08 19-Sep-08 20-Nov-08 5-Dec-08 11-Dec-08 

2 EKB-01 5-Sep-08 9-Sep-08 29-Oct-08 24-Mar-09 20-Apr-09 19-May-09 

3 ENB-01AB 2-Sep-08 4-Sep-08 3-Nov-08 10-Feb-09 16-Mar-09 1-Apr-09 

4 ENB-01C 30-Apr-09 12-Jun-09 4-Aug-09 5-Nov-09 9-Dec-09 11-Dec-09 

5 ESR-01 25-Aug-08 28-Aug-08 5-Nov-08 12-Feb-09 2-Apr-09 4-May-09 

6 ESS-01 23-Apr-09 1-May-09 11-Jun-09 9-Oct-09 10-Dec-09 14-Dec-09 

7 ESS-02 29-Aug-08 3-Sep-08 6-Nov-08 8-Apr-09 19-May-09 23-Jul-09 

8 ESU-01 20-Mar-09 31-Mar-09 4-Jun-09 11-Nov-09 2-Dec-09 9-Dec-09 

9 ENB-02 26-May-09 17-Jun-09 4-Aug-09 18-Nov-09 14-Dec-09 16-Dec-09 

10 ENB-03 10-Jun-09 22-Jun-09 25-Aug-09 2-Dec-09 10-Dec-09 14-Dec-09 

11 ESR-02 20-May-09 5-Jun-09 22-Jul-09 8-Oct-09 2-Dec-09 23-Dec-09 

12 EBL-02 10-Jun-09 23-Jun-09 26-Aug-09 5-Nov-09 10-Dec-09 14-Dec-09 

Civil Works awarded in 2010 

13 EKS-01 11-Feb-09 10-Mar-10 27-Apr-10 7-Oct-10 5-Nov-10 1-Dec-10 

14 EKS-02 17-Feb-09 10-Mar-10 27-Apr-10 20-Jul-10 6-Oct-10 22-Nov-10 

15 ESH-01 11-Sep-09 5-Oct-09 27-Jan-10 12-Apr-10 25-May-10 25-Aug-10 

16 ESS-03 21-Aug-09 27-Aug-09 6-Nov-09 11-Jan-10 19-Mar-10 15-Dec-10 

17 ENT-01 15-Jun-10 23-Jul-10 2-Sep-10 6-Dec-10 17-Dec-10 20-Dec-10 

18 ESS-04 28-Jul-10 10-Aug-10 21-Sep-10 23-Dec-10 

ICB for Goods 

1 ESB-02 22-Sep-08 25-Sep-08 6-Nov-08 2-Dec-08 15-Dec-08 15-Dec-08 

Table 4-1 Packages with Procurement Completed by end of 2010 



1. EBL- 02, Tohpati – Kusamba Stage 2 

The NOL for Award was issued by AusAID on 5 November 2009. After the approval of the 

Minister, the contract was signed on 10 December 2009. PAS also undertook additional 

reviews on the draft contract. The NOL for Contract and Disbursement was issued on 14 

December 2009. Procurement was completed in 2009. 

In January 2010, there was a claim by one of the bidders PT Yasa Patria Perkasa who 

were disqualified on basis of equipment. Their claim was evaluated by PAS and Minister‟ s 

office upheld the earlier evaluation decision of failure on equipment. 

The contract commenced construction on 1 March 2010. 

2. ESH- 01, Lakuan – Buol 

After completion of Procurement Committee training in May 2009, bid documents were 

prepared in June 2009. AusAID issued NOL to start procurement on 11 September 2009. 

The bids were advertised on 5 October 2009 and tentatively the bid opening was fixed at 27 

November 2009. However, due to discussions on revision of post-qualification criteria for 

bid evaluation, an Addendum was prepared and issued on 16 November 2009 and bid 

opening was revised to 17 December 2009. In first week of December 2009, further 

discussion continued on evaluation of personnel and equipment and it was decided that bid 

opening be deferred to 2010. 

Bid opening was finally fixed at 27 January 2010 and the bid opening was held in Palu. The 

bid evaluation continued between early February and April 2010 and the BER with PAS 

review was submitted to AusAID on 25 March 2010. On 12 April 2010, AusAID issued the 

NOL to Bid Evaluation Report. 

Minister‟ s approval on PC BER was issued on 5 May 2010 and the contract was signed on 

25 May 2010. The NOL for Contract and Disbursement was issued by AusAID on 25 

August 2010. 

The contract commenced construction on 7 October 2010 

3. EKS-01: Martapura – Ds. Tungkap, South Kalimantan Province 

After verification of the completeness and consistency of bid documents by PAS 

consultants, the NOL to start procurement was issued by AusAID on 11 February 2010. 

The bid opening of package EKS-01 was conducted on 27 April 2010 in Banjarmasin and 

eighteen (18) bidders submitted the bid proposal. 

During May 2010, preliminary bid evaluation continued and the BER with PAS review was 

submitted to AusAID in end of May 2010. AusAID responded on 27 May 2010 with 

significant reservations about the evaluation and recommendations and requested that the 

BER be revised and re-submitted. 

After a series of meetings and correspondence, AusAID in their review on 20 July 2010, 

agreed to the disqualification of Conbloc and Sumber Sari Cipta Maga, Lampiri Djaya 

Abadi-Raden Panji Soeprapto JO, Agrabudi Karya Marga, Duta Graha Indah and Citra 

Gading, but did not consider that disqualification of Bumi Rejo was supported by the 

evaluation. 

On 7 September 2010, PAS submitted letter of review on addendum to BER prepared by 

the PC. On 21 September 2010, Directorate of Planning sent the revised Bid Evaluation 



Report. The revised BER proposed the first lowest winner candidate as PT. Adhi Karya, 

Persero and the second lowest winner candidate to be PT. Bumi. 

The NOL to BER was issued by AusAID on 7 October 2010 with recommendation that 

performance security of 10% of Owner‟ s Estimate should be provided. 

After approval from Minister‟ s office, the contract as signed on 5 November 2010 and 

AusAID issued the NOL for Contract and Disbursement on 1 December 2010. 

Contract will commence construction in January 2011. 

4. EKS-02: Banjarmasin – Bts. Kalteng, South Kalimantan Province 

After verification of the completeness and consistency of bid documents by PAS 

consultants, the NOL to start procurement was issued by AusAID on 17 February 2010. 

The bid opening of package EKS-01 was conducted on 27 April 2010 in Banjarmasin and 

eighteen (18) bidders submitted the bid proposal. 

During May and June 2010, preliminary bid evaluation continued and the BER with PAS 

review was submitted to AusAID on 7 July 2010. The NOL to BER was issued by AusAID 

on 20 July 2010 with recommendation that performance security of 10% of Owner‟ s 

Estimate should be provided. 

After approval from Minister‟ s office for the BER on 25 August 2010, the contract was 

signed on 6 October 2010 and AusAID issued the NOL for Contract and Disbursement on 

22 November 2010. 

Contract will commence construction in January 2011. 

5. ESS- 03, Jeneponto – Bantaeng 

The bidding documents were prepared by PC in June 2009 and review of bid documents 

was conducted by PAS in July 2009. AusAID issued NOL to start procurement on 21 

August 2009. 

Bids for ESS-03 were opened on 6 November 2009. The Bid Evaluation Report (BER) was 

reviewed by PAS and recommendations provided to the PC and Directorate of Eastern 

Region. The BER was finalised in December 2009 and submitted to AusAID on 23 

December 2009. 

On 11 January 2010, AusAID issued the NOL to the Bid Evaluation Report on the condition 

that final NOL will not be issued until completion of LARAP process for land acquisition. 

While the process of land acquisition continued, the approval from Minister‟ s Office was 

issued in March 2010, and the contract with lowest bidder (PT Bumi Karsa and PT Nindya 

Karya) was signed on 19 March 2010. 

Major part of remaining months in 2010 was focussed on completion of land acquisition and 

it was still incomplete by the end of 2010. Outstanding land compensation activities 

included evidence of land compensation, incomplete payment for 16 mosques and 17 plots 

in Janeponto and verification of number of affected people. 

On 15 December 2010, AusAID issued the NOL to Contract and Disbursement on the 

condition that the LARAP monitoring report should be revised in January 2011. 

It is expected that construction can commence in 2011 after completion of land acquisition 

process. 



6. ENT- 01, Ende – Aegela 

On 19 to 21 January 2010, PAS conducted the procurement training and assessment of the 

readiness of PC in Satker Office in Ende, Flores, NTT. The review of the documents was 

carried out and completed by early June 2010. Bid documents were submitted to AusAID 

on 9 June 2010 and on 15 June 2010, AusAID issued the NOL to start procurement. 

Upon a request from DGH on holding a pre-bid meeting on 23 July 2010, AusAID issued No 

objection letter on 26 July 2010 and agreed to holding of a pre-bid conference. The pre-bid 

meeting and site visit was held on 2-5 August 2010. The minutes of the pre-bid meeting 

were also issued and copied to AusAID. 

The Bid opening was held in Ende, Flores on 2 September 2010, there were 10 bids 

submitted, among them PT. Nindya-Bumi Karsa JO submitted the lowest bid price. 

Bid evaluation continued upto mid-November 2010 and the BER was submitted by DGH on 

26 November 2010. On 6 December 2010, AusAID issued the NOL to the Bid Evaluation 

Report with the recommendation that performance security of 10% of Owner‟ s Estimate 

should be provided. 

After approval from Minister‟ s office for the BER, the contract was signed on 17 December 

2010 and AusAID issued the NOL for Contract and Disbursement on 20 December 2010. 

Contract will commence construction in 2011. 

7. ESS- 04, Jeneponto – Bantaeng 

From 16-17 June 2010, PAS together with the PC carried out the review of the Bid 

Document and finalized for submission to AusAID. On 28 July 2010, AusAID issued NOL to 

start procurement with conditions to be completed before next NOL is issued. These related 

to completion of land acquisition and AMDAL process. 

The pre-bid meeting was held on 18-19 August 2010 with a site visit organised as well. 

The bid opening held in Makassar on 21 September 2010, with 14 bids submitted. 

Bid evaluation continued to the end of 2010 and will be finalised in 2011. 

8. ESS- 05 (Bulukumba – Tondong) & ESS-06 (Bulukumba – Tondong - Sinjai) 

For these two packages in South Sulawesi, the PAS consultants carried out the review of 

the bid documents with the PC during June 2010 and the final documents were submitted 

to AusAID on 16 July 2010. Although the status of land acquisition is still unclear and 

compensation process has not been completed, AusAID issued the NOL to start 

procurement on 15 December 2010, on the conditions that: 

Procurement schedule to be revised; 

Pre-bid briefing is provided; and 

Procurement advisory support to be provided. 

The procurement will commence in 2011. 

4.3. Procurement Plans 

The Project Procurement Plan is the guiding plan for procurement of works and it identifies the 

key milestone dates during the procurement process. 



Each procurement plan revision is to be submitted to AusAID for their NOL before procurement 

can commence. Subsequent amendments to the Plan must also be submitted to AusAID for 

their NOL. 

In 2010, two plans were prepared and submitted to AusAID. 

Procurement Plan Version No. 5 was approved by AusAID on 8 January 2010. 

Procurement Plan Version No. 6 was approved by AusAID on 8 June 2010. 

Appendix 2 presents the Procurement Plan version 5 & 6 approved in 2010. 

Appendix 3 presents the status of Procurement Plan Version 6 at 31 December 2010. 



5. Implementation of Civil Works (Construction) 

Up to the end of 2009, Commencement Date has been issued for 5 packages. 

In 2010, Commencement Date was issued for 8 more packages, and NOL for Contract and 

Disbursement was awarded to another 4 packages (EKS-01, EKS-02, ESS-03 and ENT-01), for 

which construction is expected to commence in 2011. 

Thus by end of 2010, total 13 packages out of 20 were under construction. 

List of Packages for which Commencement Date has been issued are shown in Table 5-1. The 

table also presents the summary of progress as at 31 December 2010. 

Package 

EBL-01 

EBL-02 

EKB-01 

ESU-01 

ENB-01AB 

ENB-01C 

ENB-02 

ENB-03 

ESR-01 

ESR-02 

ESS-01 

ESS-02 

ESH-01 

Location 

Bali 


Bali 


Stage 2 


Pontianak - Tayan 


Molibagu - Mamalia - 

Taludaa 


Sumbawa Besar 

Bypass 


Pal IV - Km 70 


Km 70 - Bts. Cadbin 

Dompu 


Bts. Cadbin Dompu - 

Banggo 


Tinanggea - Kasipute 


Bambaea - Sp. 

Kasipute 


Sengkang - Impa Impa 

- Tarumpakkae 


Bantaeng - Bulukumba 

Central Sulawesi 

Lakuan – Buol 

Commencement 

Date 




Financial 

Progress 

25 Feb 2009 96,35 % 74,26 % 22.09 % 62.2% 

1 Mar 2010 30.01 % 32.64 % + 2.63 % 36.6% 

24 Jul 2009 71.02 % 66.45 % - 4.56 % 62.5% 

1 Mar 2010 29.50 % 8.63 % - 20.87 % 18.1% 

5 Jun 2009 81.30 % 54.03 % - 27.28 % 50.6% 

1 Mar 2010 27.70 % 8.53 % - 19.16 % 18.8% 

6 Apr 2010 41.63 % 5.22 % - 36.41 % 16.7% 

1 Mar 2010 15.84 % 6.50 % - 9.34 % 19.7% 

13 Jul 2009 73.74 % 26.86 % - 46.88 % 33.9% 

30 Apr 2010 21.14 % 14.07 % - 7.07 % 25.4% 

1 Mar 2010 21.11 % 11.51 % - 9.60 % 18.3% 

15 Oct 2009 57.50 % 17.20 % - 40.31 % 24.4% 

7 October 2010 3.19 % 3.38 % + 0.19 % 12.9% 

Table 5-1 List of Projects Commenced by end of Dec 2009 

The projects that have been awarded NOL for Contract and Disbursement was issued and 

advance payment processed in December 2010 are shown in Table 5-2 



Contracts awarded but not commenced by December 2010 

No 

Package 

No 

Province 

Location 

Contract 

Signature 

NOL 

Disbursement 

1 EKS-01 South Kalimantan Martapura - Ds. Tungkap 5-Nov-10 1-Dec-10 

2 EKS-02 South Kalimantan Banjarmasin-Bts.Kalteng 6-Oct-10 22-Nov-10 

3 ESS-03 South Sulawesi Janeponto - Bantaeng 19-Mar-10 15-Dec-10 

4 ENT-01 NTT Ende - Aegela 17-Dec-10 20-Dec-10 

Table 5-2 

List of projects awarded of NOL (Disbursement) 

5.1. Summary of On-going Contracts 

The detailed contract data for five contracts awarded and where construction work has 

commenced is shown in Appendix 4. 



6. Procurement of Goods 

Under the EINRIP loan, the Goods category comprises two parts: 

i) Acquisition of pre-fabricated steel truss bridge material for replacement program for selected 

deteriorated bridges in Eastern and Western Indonesia; and 

ii) Provision of communications/ office equipment for Project Management Unit (PMU). 

The original contract for steel truss bridge material was procured in Oct-Nov 2007, however, 

due to delays in obtaining funding, and as the loan did not become effective until March 2008, 

and increases in the cost of steel, the contract was cancelled for convenience in May 2008. 

The revised contract (ESB-02) was subsequently re-bid during September - November 2008 

and the bid of PT Karunia Berca Indonesia in the amount of IDR 50,529,504,300 was accepted 

and a contract was subsequently signed on 15-December 2008. 

The second component of the Goods category for IT equipment was also removed from the 

procurement activities through a decision by Bina Marga. 

6.1. Contract Data for Goods Contract ESB-02 

Contract : ESB-02 for Supply of Prefabricated Steel Bridges 

Contract No : 01-20/ESB-02/BT/L002/1208 

Supplier : PT. Karunia Berca Indonesia 

Contract cost : Rp. 50,529,504,300 

Contract signature : 15-Dec-08 

Contract duration : 210 days 

Target completion : 13-Jul-09 (completed on schedule and on the actual price) 

Warranty Period : 360 days 

Progress Summary: 

At the time of the award of the contract, there was no supervision consultant identified in 

the General Conditions of Contract. In order to ensure proper professional supervision of 

supply of materials, the consultancy services agreement with EGIS BCEOM as the 

“Regional Supervision Consultant (RSC)” for the EINRIP project was amended through a 

Contract Memorandum No. 1 between DGH and BCEOM, signed on 4-May-2009. 

Letter of Appointment of the Supervision Engineer was issued on 6-May-2009. 

RSC Team Leader appointed Mr. Alain Debuissy as the Engineer‟ s Assistant, supported by 

an Inspector. 

RSC supervised the supply, fabrication and delivery of the steel bridge material in the 

contract through five site visits to KBI workshop in Cilegon, Java and to the delivery site at 

the Gudang Bina Marga at Citeureup, Bogor between May and July 2009. The RSC 

supervision did not find any major deficiency in the supplied material. 

The contract was completed in July 2009 and Final Report issued in August 2009. 



7. Financial Summary 

The financial progress for cumulative disbursements during 2010 has been lower than planned 

due to delays in award of contracts and delays in commencement of procurement due to land 

acquisition process being incomplete. By 31 December 2010, only 27% of planned 

disbursements could be realised. Another key factor is slow process for filed engineering and 

preparation of sound technical justification for variation orders. Due to this slow aspect, many 

contractors are no slowing the works pending approval of Employer. 

7.1. Status of Loan Withdrawals, Payments and Disbursements 

Three withdrawal applications (WA) were processed to end of 2009. Another 3 applications 

were approved in 2010. 

Total loan withdrawals as on 31 December 2010 is A$ 91.27 million consisting of: 

WA No. 1 (23 April 2009) : A$ 8,177,894.00 

WA No. 2 (23 March 2009) : A$ 19,049,965.00 

WA No. 3 (23 June 2009) : A$ 24,999,965.00 

WA No. 4 (15 January 2010) : A$ 3,599,965.00 

WA No. 5 (15 March 2010) : A$ 9,725,965.00 

WA No. 6 (15 June 2010) : A$ 25,714,365.00 

‣ Payments Processed in 2010 

Total payment processed in 2010 is A$ 40.559 million, consisting of GOA payments from 

Special Account of A$ 36.153 million and contribution from GOI of A$ 4.406 million. Payments 

processed in 2010 are showed in Table 7-1. 

Category 

GOA 

A$ Million 

GOI 

A$ Million 

IDR AUD IDR AUD 

1 Civil Works 

EBL-01 (MC No. 11-22) 41,153.46 5.007 5,595.02 0.681 

EBL-02 (MC No. 1-9) 40,692.21 4.892 5,532.31 0.665 

ENB-01AB (MC No. 8-19) 17,602.71 2.057 2,393.18 0.280 

ENB-01C (MC No. 1-10) 10,400.83 1.198 1,414.05 0.163 

ENB-02 (MC No. 1- 9) 3,708.66 0.429 504.21 0.058 

ENB-03 (MC No. 1-10) 7,961.70 0.948 1,082.43 0.129 

ESR-01 (MC No. 6-18) 19,454.95 2.267 2,645.00 0.308 

ESR-02 (MC No. 1-8) 11,922.96 1.381 1,620.99 0.188 

EKB-01 (IMC No. 4-17) 54,696.26 6.532 7,436.23 0.888 

ESS-01 (MC No. 1-10) 6,823.30 0.763 927.66 0.104 

ESS-02 (MC No. 1-15) 14,476.88 1.727 1,968.21 0.235 

ESU-01 (MC No. 1-7) 2,785.14 0.331 378.65 0.045 

ESH-01 (MC No. 1-3) 10,707.12 1.237 1,353.19 0.157 



Category 

GOA 

A$ Million 

GOI 

A$ Million 

IDR AUD IDR AUD 

ESS-03 (Adv. Payment) 8,066.67 0.887 1,096.70 0.121 

EKS-01 (Adv. Payment) 6,902.79 0.764 938.47 0.104 

EKS-02 (Adv. Payment) 7,200.10 0.797 978.89 0.108 

ENT-01 (Adv. Payment) 10,718.50 1.179 1,457.23 0.160 

2 Goods 

ESB-02 - - - - 

3 IOC 

IOC 877.39 0.102 111.39 0.013 

4 Implementation Support 

PMSC (Dec. 2009-Dec. 2010) 6,477.03 0.750 - - 

RSC (Dec. 2009-Nov.2010) 18,590.11 2.151 - - 

PAS (Nov. 2009-Nov. 2010) 6,298,44 0.755 - - 

Total 307,517.22 36.153 37,433.82 4.406 

Table 7-1 Payments Processed in 2010 

Total cumulative payments up to 31 December 2010 are shown in Table 7-2 below: 

No 

Category 

Payments GOA 

(Million) 

Payments GOI 

(Million) 

Total 

(Million) 

IDR AUD IDR AUD IDR AUD 

1 Civil Works 430,124.65 51.168 58,375.12 6.945 488,499.77 58.114 

2 Goods 40,882.96 5.006 5,558.25 0.677 46,441.21 5.684 

3 IOC 2,525.99 0.312 318.44 0.039 2,844.44 0.351 

4 

Implementation 

Support 

84,431.45 10.438 0.00 0.000 84,431.45 10.438 

Total 557,965.05 66.924 64,251.81 7.662 622,216.859 74.586 

Table 7-2 EINRIP Cumulative Payments up to 31 December 2010 

‣ Payments Monitoring 

Appendix 5 presents the monthly expenditure charged to each Civil Works contract and other 

loan categories, processed upto the end of December 2010. 

Figure 7-1 shows the monthly expenditure as accumulated upto December 2010. 


Expenditure (A$ 000) 


EINRIP Cumulative Expenditure up to 31 December 2010 

(A$ 000) 

80.000,00 

74.586,57 

70.000,00 

60.000,00 

55.398,18 56.157,09 60.326,90 

50.000,00 

46.317,91 

49.435,88 

40.000,00 

43.540,30 

39.889,10 41.262,41 

35.523,42 36.539,72 

34.027,59 34.027,59 

30.000,00 

20.000,00 

10.000,00 

20.914,66 22.248,64 

20.198,33 

17.516,77 

12.548,50 

11.841,93 

7.871,78 8.684,82 10.159,94 

- 

37,48 47,91 71,53 

Month 

Figure 7-1 Cumulative Monthly Expenditure to Dec 2010 

7.2. Analysis of Planned Vs Actual Expenditure 

The year 2009 commenced with Version 3 of the Procurement Plan that was approved on 26- 

Jan-2009. Based on this plan, a cash expenditure profile for only Special Account (SA) was 

drawn up to form the basis of comparison of planned disbursements from the Special Account 

and the actual expenditures incurred. 

Based on Procurement Plan Ver 3, the planned disbursement from loan funds up to 31 

December 2010 was estimated at A$ 242.14 million. The actual payment during the same 

period is A$ 66.92 million, about 27.64% of planned disbursement. The primary reasons for 

lower expenditure are delays in completion on environmental studies, especially land acquisition 

process which resulted in delays in procurement process and delays in award of contracts. The 

S-curve based on this plan is shown in Figure 7-2. 

EINRIP Loan Budget Plan and Actual (A$ million) 

350,00 

300,00 

286,37 

294,24 298,49 

300,66 302,32 302,61 

250,00 

242,14 

200,00 

150,00 

100,00 

66,92 

50,00 

- 

Proc. Plan 

Actual 

Figure 7-2 

S-curve for Expenditure of Special Account 


Loan Allocation (mill) 

Rupiah 

Rupiah 

7.3. Foreign Exchange Rate Variation 

10.000 


The exchange rate of AUD vs. IDR varied between highest rate of 9,142.50 (31-Dec 9.142,5 2010) to 

9.000 

lowest value of Rp. 7,555.0 (7 June 8.465 2010). 8.509 

8.727 

8.630,0 8.722,2 

The average AUD exchange rate to Rupiah was Rp. 

8.139 

8.291 

8.344,3 8.377,6 

7.949 

8.692 

8.049,6 8.079,1 

8.700,7 

8.342,4 (Figure 

7.7327-3). 

8.432 

8.000 

8.361,6 8.326,4 

7.000 

6.000 

7.556 

7.327 

7.792 

Trend of Australian Dollar (Middle Value) 

2009-2010 

8.204 

Trend of Australian Dollar (Middle Value) 

2009-2010 

7.789,7 7.730,1 

10.000 

5.000 

9.000 

4.000 

8.000 

3.000 

7.556 

7.732 

7.949 

8.139 

8.291 

8.204 

8.465 8.509 

8.727 

8.692 

8.432 

8.344,3 8.377,6 

8.361,6 8.326,4 

9.142,5 

8.630,0 8.722,2 

8.049,6 8.079,1 

8.700,7 

7.000 

2.000 

7.327 

7.792 

7.789,7 7.730,1 

6.000 

1.000 

5.000 

- 

4.000 

3.000 

Figure 7-3 

Trend of Exchange Rates 

2.000 

7.4. Impact of Exchange Rate on Total Project Cost 

1.000 

- 

Changes in exchange rate may have significant effect on loan project cost. For example, the 

impact of changes in exchange rate is showed in Figure 7-4, that shows if rupiah currency falls 

on Australian Dollar then the need of AUD currency will increase. Otherwise if rupiah currency 

increases then the need of AUD currency will decrease. 

Elasticity of Changes in Exchange Rate Between AUD and 

IDR to EINRIP Loan Allocation 

320,00 

310,00 

300,00 

290,00 

280,00 

270,00 

260,00 

250,00 

7500 8000 8500 9000 

Figure 7-4 

Project Cost changes on Variable Exchange Rate 



8. Implementation Support Consultants 

Procurement of implementation support consultants commenced in early 2008 and by the end 

of 2008, three consultants were awarded the contracts: 

1. Regional Supervision Consultants (RSC), contract signed on 26-Nov-2008, services for 

39 months 

2. Procurement Advisory Services Consultants (PAS), contract signed on 28-Oct-2008, 


3. Project Management Support Consultants (PMSC), contract signed on 09-Dec-2008, 


Thus, by January 2009, all three consultants had been mobilized. During 2010, following is 

summary of activities of the three consultants. 

8.1. Project Management Support Consultant (PMSC) 

The PMSC provides support to the PMU and DGH in management of the Project. Key 

milestones of PMSC services are: 

Staffing 

Team Leader of PMSC was replaced on 12 February 2010. The replacement TL was 

approved by AusAID on 12 April 2010. The international Senior Contracts/QA Specialist 

performed as Acting Team leader until 12 April and then as full TL in 2010. 

The replacement of international Senior Contracts/QA Specialist mobilized on 12 April 

2010, but resigned from the project on 28 July 2010. The replacement candidate has been 

approved by DGH, who will mobilize on 3 January 2011. 

Financial Management Specialist (Int) provided one 3-week input from 14 June 2010. 

The international Environmental Specialist provided three inputs between (22-March - 21 

April), (31 May – 15 July) and (18 Oct - 17 Dec). 

The Assistant Team Leader passed away in September 2010; his replacement has been 

submitted to DGH for approval and is expected to mobilize in January 2011. 

General Duties 

PMSC supported PMU-EINRIP in management of various EINRIP activities and provided 

coordination with AusAID, RSC and PAS Consultants, and other external agencies. 

PMSC took over the ESS activities including AMDAL for South Sulawesi packages and land 

acquisition of all packages from PPC in April 2009. 

Provided maintenance support to EINRIP website and uploading of bid documents and 

other notices. 

Provide assistance to PMU in preparation of all coordination meetings. 

Specific activities of PMSC in 2010 

Finalisation of Management Action Plan and preparation of Summary MAP Reports from 

February 2010. 



FMIS Version 2.0 was developed and first presentation made to PMU and EMU in January 

2010. After a number of iterations and trial runs, improvements have been incorporated and 

final version 2.0 was installed in Denpasar in Satker offices of EBL-01 and EBL-02 on 28 

June 2010. 

Installation of FMIS in all Satkers offices in West Nusa Tenggara in November 2010. 

Prepared the quarterly Financial Monitoring Report (FMR) No. 5, 6, 7 and 8 for Oct-Dec 

2009, Jan-Mar 2010, Apr-Jun 2010 and Jul-Sep 2010. 

Prepared the format for monthly Project Progress Report (PPR) which is prepared by PMU 

as per loan agreement and provided assistance in preparation of monthly PPRs. 

Attended the Pre-Construction Meetings for EBL-02 (21-22 January), ENB-01C, 02 & 03 (2- 

6 February), ESR-02 (3 February), ESS-01 (11 February), and ESH-01 (30 September). 

Conducted Quality Monitoring visits to EBL-01 (10-12 March), ESS-02 (8-11 March), ESR- 

01 (27-29 April), EKB-01 (17-18 May), ENB-01C and ENB-02 (2 June), EBL-01/02 (12-15 

July) and ESS-01 (19-21 July). 

PMSC developed an integrated environmental monitoring, response and reporting system 

incorporating different stakeholders in order to improve overall quality and relevance of the 

environmental compliance monitoring process. 

Conducted ESS Monitoring visits to EBL-01 and EKB-01. 

TFAC Follow-up audits were conducted by PMSC in November and December 2010. 

Developed draft Management Practices for base camp, quarry sites and asphalt mixing 

plant for BinTek. 

Assisted PMU in coordination of development of proposal for HIV/AIDS awareness 

campaign. 

Provided input in revision of Annual Procurement Plans and monitoring its implementation. 

Provided support and monitored the to M&E surveys of 2010. The M&E teams conducted 

the surveys between June-August 2010. 

Updating of Project Management Manual (PMM) in March-April 2010. 

Support to development of performance indicators for ACAP and assisted PMU in 

preparation for 2010 ACAP audit. 

Carried out financial exercises and analyses of loan amount to propose loan category 

changes related to preparation of explanatory notes for Loan Closing date extension. 

Contract Amendments 

Addendum No. 1 was signed on 20 August 2010, covering the replacement of key 

personnel, adjustment in time for completion of services and adjustment in staffing 

schedule. Cost was reduced both for IDR and AUD. 

8.2. Regional Supervision Consultants (RSC) 

Regional Supervision Consultant (RSC), responsible for construction supervision of all Civil 

Works, are designated the role of “Engineer” under the FIDIC-based contract. RSC is managed 

by DGH through the Directorate of Roads and Bridges, Eastern Region, including supervision of 



packages in Metropolitan areas. The team is based in Makassar, with all field supervision teams 

are established at project locations. 

Staffing 

Team Leader mobilized on 1-Dec-08 and Deputy TL mobilized on 23-Dec-08. 

The Quality/Pavement/Materials Specialist mobilized on 11-Jan-09, but resigned and 

demobilized on 09-Apr-09. The replacement specialist mobilized on 14-Apr-09. 

International Chief Supervision Engineer CSE-A1 and CSE-A2 mobilised on 11-Feb-09 and 

1-Sep-09 respectively. CSE-A3 mobilised on 1 July 2010. 

National Chief Supervision Engineer CSE-B1 mobilised on 06-Jan-09. 

National Bridge Engineer mobilized on 1 February 2010. 

International Environmental Specialist provided two inputs in 2010. 

Field supervision teams (key professional staff) were mobilized for: 

- EBL-02: Jan-May, 2010 

- ENB-01C: Jan-March, 2010 

- ENB-02: Jan-March, 2010 

- ENB-03: Jan-March, 2010 

- ESR-02: Jan-May, 2010 

- ESS-01: Dec 2009 - March, 2010 

- ESU-01: Feb-Aug, 2010 

- ESH-01: September, 2010 

Specific activities of RSC in 2010 

Updated the Quality Assurance Plan (QAP) and RSC organized a 3-day Training Workshop 

on 26-19 September, 2010 in Makassar. 

The workshop was attended by field supervision staff of the five on-going contracts as well 

as Contractor‟ s key staff. 

Monitoring of environmental aspects in construction and preparation of specific 

Environmental Monitoring Reports. 


Addendum No. 1 was signed in May 2009 to include the supervision of ESB-02, 

Prefabricated Steel Bridge Material contract. 

8.3. Project Advisory Services (PAS) Consultants 

The Procurement Advisory Services Consultant (PAS) provide support to the civil works 

Procurement Committees established in the Provincial Satker for each contract package. The 

team is based in Jakarta and managed by DGH through the Directorate of Roads and Bridges, 

Eastern Region, including procurement of packages in Metropolitan areas. 



Staffing 

Contract was signed on 28 October 2008. 

Team Leader mobilized on 17-Dec-2008 and Assistant Team Leader on 9-Jan-2009. 

3 of the 4 Procurement Advisors were mobilized in January 2009. The fourth Procurement 

Advisor was not mobilized. 

Training 

In 2010, PAS provided procurement training to the Procurement Committees for: 

- ENT-01 on 19-21 January 2010 

- ESS-04 on 6-8 April 2010 

- EL-02 on 28-30 April 2010 

- ENT-01 on 21-22 April 2010 

Procurement activities in 2010 

By end of November, 2010 PAS had completed procurement activities for 13 packages: 

Procurement ongoing at time of demobilization for 5 packages: 

EKS-01, EKS-02, ESH-01, ESS-03 and ESS-04 

Bidding did not commence for ESS-05 and ESS-06 


Memorandum No. 2 was signed in August 2009. 

Contract Addendum No. 1 was signed on 19 February 2010, for extension of PAS contract 

to 31 August 2010. 

Contract Addendum No. 2 was signed on 28 October 2010, for extension of PAS contract to 

30 November 2010. 

PAS consultants de-mobilised on 30 Novembre 2010. 



9. Technical and Financial Audits in 2010 

A requirement of the loan agreement for the EINRIP Project is that the individual projects will be 

independently audited by consultants appointed directly by AusAID. The objective is to conduct 

technical and financial audits during the implementation of civil works to assess compliance with 

the design document requirements and that the required quality is achieved. 

9.1. Technical and Financial Audit Consultants 

In early 2010, AusAID engaged the services of Cardno Emerging Markets (Australia) Pty Ltd as 

the Technical and Financial Audit Consultants (TFAC). After their mobilization and initial 

inception meetings in March 2010, the TFAC team conducted its first full TFAC audit in Bali on 

EBL-01 in end of March 2010. 

A presentation of the Inception Report and findings of first audit of EBL-01 was presented in a 

workshop in Jakarta on 19 and 20 May, 2010. This was followed by full audits of 4 packages. 

The dates of initial full TFAC audits are: 

EBL- 01, Tohpati - Kusamba 29 - 31 March, 2010 

ENB- 01AB, Sumbawa Besar Bypass 25 May - 2 June, 2010 

EKB- 01, Pontianak - Tayan 14 - 21 June, 2010 

ESR- 01, Tinanggea - Kasipute 29 June - 8 July, 2010 

ESS- 02, Bantaeng - Bulukumba 16 - 23 July, 2010 

The TFAC audit reports were released by AusAID on 27 May, 2010, and reports for other four 

packages on 18-August, 2010. 

The findings of the first TFAC audit for EBL-01 was presented in a workshop in Jakarta on 20 

May, 2010. 

The findings of the next four TFAC audits (EKB-01, ENB-01AB, ESR-01, and ESS-02) were 

presented in a workshop in Jakarta on 5 October, 2010. 

9.2. Key issues identified in TFAC Audits 

a) There is lack of quality management both by the contractors and site supervision teams. 

The Quality Management procedures required by the Conditions of Contract and by the 

General Specification have not been applied in a satisfactory manner on any of the 

projects. Many Site Supervision staff are unaware of the required quality standards and 

are not enforcing Holding Points. 

b) Interim Certificate claims including payment for works that are non conforming have been 

processed in many cases. 

c) Most projects are proceeding at a rate that will not ensure completion within the Time for 

Completion. In some cases work is being delayed by uncertainty associated with the 

variation approval process. 

d) There are deficiencies in Contractor‟ s Equipment e.g. intermediate to small drum width 

rollers; deficiencies in blending plant design; Coal fired asphalt plants are without 

certification; complying bitumen distributers for prime and tack coat; rotary power broom 

and use of oversized haulage trucks 



e) Works defect categories that are common to most projects include: traffic management; 

maintenance of the existing road and haul roads; staking out; drainage of works in 

progress; drainage of pavement structure (weep holes); drain level compliance; grade 

preparation; benching, pavement sub layer width; private access; aggregate base 

segregation; aggregate base grading and concrete strength insitu (Schmidt Hammer). 

f) Several projects are suffering delay to works because of delay to commence field 

engineering,finalization of field engineering report, process and finalization of Variation 

Order (at field level), mobilization of equipment, construction and slow progress in 

implementation of works, management and financial problems. 

9.3. Recommendations of TFAC Audits 

a) All Supervision Team and QCM staff should be reminded of the Quality Management 

duties they are required to perform. Quality Control Manager actions necessary to comply 

with General Conditions of Contract, General Specification and Quality Assurance Plan 

(QAP) requirements must be defined by the CWC Quality Control Plan. 

b) Some further personnel changes are needed both for CWC-QCMs and Supervision Team 

staff. Site staff should be provided more intensive on-the-job training. 

c) The Site Supervision Engineers should only approve conforming works for payment. Non 

conforming works including those already included in Monthly Certificates should be 

deleted from current and future Interim Payment until corrected or approved. 

d) The Engineer should apply GCC Part 1, Cl 8.6 requirements in relation to Rate of 

Progress to all projects. 

e) Certain works including widening and asphalt work, should not be permitted to proceed 

until all necessary equipment is available on site. 

9.4. Follow-up of TFAC Audit 

One of the conclusions of the 5 October TFAC workshop was the need for follow-up on the 

actions by the Contractors and RSC field supervision teams on the initial TFAC findings and an 

evaluation of the extent to which the TFAC findings have resulted in improvement of the general 

quality of works and review the actions to address individual non-conformities identified in the 

initial audit. 

After discussions with PMU and PMSC, it was decided that a general follow up will be 

conducted initially by PMSC and then by TFAC consultants during Nov-Dec, 2010. 

The follow-up review visits were undertaken at following dates: 

ENB- 01AB, Sumbawa Besar Bypass 

EKB- 01, Pontianak - Tayan 

ESR- 01, Tinanggea - Kasipute 

ESS- 02, Bantaeng - Bulukumba 

25 Nov, 2010 (TFAC &PMSC) 

10 Nov, 2010 (PMSC) 

30 Nov - 3 Dec, 2010 (TFAC &PMSC) 

4 - 5 Dec, 2010 (TFAC &PMSC) 

The results of the reviews were not encouraging. A number of non-conformities identified in 

initial TFAC audits were not addressed, and there was little effective response either from the 

Contractor or RSC field supervision team. This concern was conveyed by AusAID to DGH 

formally, as well as through formal meetings between senior management. 

At the end of follow-up visits by TFAC and PMSC, DGH was also concerned about lack of 

effective response from the Contractors and RSC on the initial TFAC findings. 



Subsequently, the Directors of Implementation Regions initiated a final follow-up of the TFAC 

findings in late December 2010. 

As part of this response, it was decided that: 

Satkers and PPK should make the RSC to take actions so that the audit findings from 

original and follow up TFAC audits are addressed immediately. 

The Contractor must be required to complete the rectification and provide a report on 

response to the follow up to the SSE of RSC and copy to PPK 

RSC should inspect all rectification works and items and submit a confirmation report by 

15-Jan-2011 that the audit findings have been rectified. 

PMSC will then conduct verification/evaluation visits to all five packages and provide a 

final report to PMU and DGH. 

The follow-up process will be initiated in January 2011 and is expected that the DGH response 

to TFAC audit first round will be completed by February 2010. 



10. Project Administration and Management 

10.1. HIV/AIDS Campaign 

During 2009, a number of discussions were held between PMSC/PMU and AusAID HIV/AIDS 

advisor on the requirements of this campaign. Discussions were also held with SRIP project 

office in DGH and with Environment Sub directorate in DGH, who had earlier provided key input 

in the campaign for other projects. 

Meetings were also held with National Aids Commission, who provided information on the 

regional offices in the areas where project works will be carried out. At end of 2009, the draft 

TOR for the campaign was prepared and was under discussion. 

In January 2010, an informal presentation was given by IPPA Jakarta Chapter (PKBI DKI 

Jakarta) who provided useful information on the different HIV/AIDS campaigns and programs 

currently undertaken by them. 

The Terms of Reference (TOR) were discussed with Environment Sub directorate in end of 

March 2010, and an indicative Owner‟ s Estimate was also prepared. It was eventually decided 

that services will be accommodated in the supervision consultancy contract through an 

addendum; and RSC will take the lead on calling for proposals and evaluation. The actual 

campaign will then be delivered by the selected service provider (NGO) under RSC supervision. 

After administrative approvals, during May 2010, BCEOM (RSC Consulting firm) invited 

proposals from shortlisted firms/consultants provided by DGH. The evaluation of the proposals 

was completed by end of September 2010. 

The contract with the NGO (Yayasan Kusuma Buana) was signed on 8-Nov-2010 and they 

indicated 15-Nov 2010 as the date for commencement of services. An informal meeting was 

held with DGH in end of November to present the contract and draft program. A formal 

presentation was given by YKB on 20 Dec-2010 in which they presented the team structure and 

preliminary visit plan for conducting the campaign. 

The actual campaign will commence in January 2011 from the two packages in Bali. 

10.2. Implementation of Anti Corruption Action Plan (ACAP) 

The EINRIP Anti Corruption Action Plan has been adopted by GOI and incorporated into the 

Loan Agreement. It is intended to ensure that anti corruption measures are an integral part of 

project implementation. 

The key features of the EINRIP ACAP are: 

Key project documents and updated reports on financial and technical aspects of project 

implementation, complaints handling mechanism and results, and audit results will be 

publicly available, including on the EINRIP website 

Strengthened supervision and audit mechanismas have been put in place. This includes 

use of FIDIC based contracts and appoitinting RSC as the Engineer 

External technical and financial audits. 

Measures to increase the efficiency and accountability of procurement process, including 

the use of a Procurement Agent for the selection of consultancy services and 



Procurement Advisory Services (PAS) for the selection of civil works contractors, and 

improvement of MPW‟ s existing e-procurement system. 

During June 2010, a meeting was held with BPKP (Badan Pengawasan Keuangan Dan 

Penbanguan) to discuss the implementation of ACAP in EINRIP and other projects. It was 

advised that 2010 Audit of ACAP is planned for August-October 2010 and a number of EINRIP 

contracts will be visited. BPKP also discussed the revision of the performance indicators. 

In July 2010, a dissemination meeting was organised by BPKP for the Guidelines for ACAP 

2010 evaluation. The meeting, at Bogor (Java), spanned over the week of 26-30 July 2010. 

Along with EINRIP, other funded projects as EIRTP-2 and SRIP were also discussed. The 

participants of the meeting were BPKP officials from the 20 provinces of the funded projects. 

The Director of Planning from DGH attended the meeting with the PMU for EINRIP, SRIP and 

EIRTP. 

The 2010 ACAP audit was planned in August-October 2010 period and prior to audit, BPKP 

coordinated with PMU and Inspectorate General of MPW to revise the performance indicators 

for evaluation of ACAP implementation. These indicators were broadly based on the seven key 

areas of ACAP including: 

Establishment of Project Website (Pengelolaan Website) 

Bidding Preparation (Persiapan Lelang) 

Bidding Evaluation (Evaluasi lelang). 

Contract Implementation (Pelaksanaan kontrak) 

Complaints Handling Procedures (Penanganan Pengaduan) 

Financial (Finansial) 

Audit (Audit) 

Each of the above indicators was further classified into sub-indicators to completely encompass 

the key considerations of ACAP. 

The revised performance indicators used for 2010 ACAP Implementation Audit are presented in 

Appendix 6. 

BPKP completed audit on EINRIP packages in October 2010. Total 14 packages in EINRIP 

were audited, as shown in Table 10-1. 

No. Package Name Province 

1 EBL- 01 Tohpati – Kusamba Bali Also in 2009 audit 

2 EBL- 02 Tohpati – Kusamba Stage 2 Bali 

3 ESH- 01 Lakuan – Buol Central Sulawesi 

4 ESU- 01 Molibagu – Taludaa North Sulawesi Also in 2009 audit 

5 ENB- 01AB Sumbawa Bypass NTB (Sumbawa) Also in 2009 audit 

6 ENB- 01C Sumbawa Pal IV – Km 70 NTB (Sumbawa) Also in 2009 audit 

7 ENB- 02 Km 70- Bts. Cabdin Dompu NTB (Sumbawa) 

8 ENB- 03 Bts. Cabdin Dompu – 

Banggo 

NTB (Sumbawa) 

9 ESR- 01 Tinanggea – Kasipute South East Sulawesi Also in 2009 audit 



No. Package Name Province 

10 ESR- 02 Kasipute – Bambaea South East Sulawesi 

11 ESS- 01 Sengkang – Impa Impa – 

Tarumpakkae 


12 ESS- 03 Jeneponto – Bantaeng South Sulawesi 

13 EKB- 01 Pontianak – Tayan West Kalimantan Also in 2009 audit 

14 EKS- 02 Banjarmasin – Bts. Kalteng South Kalimantan 

Table 10-1 

List of packages for 2010 ACAP Audit 

In this second year of ACAP audit, 7 evaluators visited 14 packages and PMU and the summary 

of evaluation is shown in Table 10-2. 

Indicator Value (%) Compilation Value Of 

Package Performance (%) 

Value Of PMU 

Performance (%) 

Website Management 15 9.138 % 12, % 

Bid Preparation 20 22.945 % 20 % 

Bid Evaluation 20 23.227 % 20 % 

Contract Implementation 20 15.606 % 20 % 

Handling Complaints 5 3.804 % 5 % 

Finance 10 10.672 % 10 % 

Audit 10 6.495 % 10 % 

%Total 100 91.888 % 97 % 

Table 10-2 

Summary Evaluation of 2010 ACAP Audit 

Overall, the BPKP Report termed that ACAP EINRIP performance value of 91.89% on limited 

basis may be deemed to reflect the optimum success. 

10.3. Project Management Manual 

As a requirement of the EINRIP loan agreement, the Project Management Manual (PMM) is a 

condition for loan effectiveness which is to be used by all concerned parties as a key reference 

for project implementation in all activities including consultancy services, implementation and 

other matters contained in the loan agreement. The PMM was approved in 2008 and the current 

version at end of 2010 is the September 2008 version. 

After the initial months of the application of PMM by the various units within DGH and by the 

three consultants, the need for revision was felt by all users. Although the PMM was quite 

comprehensive, there were few regulations issued by the DGH that necessitated the updating of 

the PMM. In addition, the PMM itself recommended that the PMM should be updated annually. 

The update process was a progressive one with initial discussions between PMSC and PMU. 

RSC and PAS, being directly involved in supervision and procurement, were requested to 

provide their feedback and comments. 

The comments received from RSC and PAS were discussed with PMU in Sep/Oct 2009 and a 

draft revision of the PMM was provided to EMU (AusAID) for comments in Nov/Dec 2009. 

The key areas where revision has been discussed include: 



Changes in Complaints handling procedures 

Design updating and revision during procurement and in construction 

Changes to procurement procedures especially post qualification criteria for personnel 

and equipment 

Integrity Pact for awarded contracts 

Variations and contract amendments 

Measures to handle slow rate of progress in construction 

Changes in the FMR forms 

A number of meetings were organised by Head of SubDit Standards & Guidelines in BinTek in 

March 2010 to review the proposed changes to PMM. Three focus groups, comprising of senior 

staff from Directorate of Eastern Region, BinTek and consultants, were formed for reviewing the 

PMM sections on implementation, procurement, and financial management. The final 

recommendations by the three focus groups and the formal suggested changes were 

incorporated into the new version of PMM. In a meeting held under Dir (Eastern Region) on 1- 

July-10, the flow chart of procurement was discussed and it was suggested that a separate flow 

chart for preparation of BER should be prepared. The flow chart was finalised in July 2010 and 

the draft revision along with Annexes was sent to AusAID on 23-Jul-10 for their concurrence. 

AusAID provided their final comments on 22-Oct-2010 and meeting was held with them on the 

proposed minor revisions. The changes were also incorporated in the revised PMM. 

At end of 2010, the draft revision of PMM was completed and it is expected that the new version 

will be released after formal approval in early 2011. 

10.4. Coordination Meetings in 2010 

The loan agreement requires that the Republic of Indonesia shall, through MPW and the 

Ministry of Finance, meet with the Commonwealth, through AUSAID, every six months during 

Project implementation, to review measures taken in response to key audit report findings, and 

the adequacy of the Republic of Indonesia funds and the need for any adjustment of those 

funds. These were termed as the six-monthly Joint Management meetings. 

Two types of coordination meetings are held in EINRIP: 

Six-monthly Joint Management Meeting (JMM) between DGH, AusAID, BAPPENAS and 

MOF. (Every 2 nd JMM is also termed as Senior Representative meeting) 

Monthly Coordination Meeting – PMU, PMSC, PAS, RSC and EMU 

Summary of meetings held in 2010 is presented below. 

Six-monthly Joint Management Meeting 

The 6 th EINRIP Joint Management Meeting was held on 24 August 2010 at Directorate General 

of Highways, MPW, attended by senior officials from MoF, BAPPENAS and AusAID. 

Key issues discussed during the meeting included: 

Review of project progress for previous six months covering procurement and contracts 

ward progress. Concern was expressed on delays in procurement process and land 

acquisition; 

Process for contract variations and delays associated with the approval process; 



Unsatisfactory progress and delays on some packages and consideration of termination 

of contracts; 

Proposed Changes to Loan Sharing Arrangement (tabled by AusAID); 

Proposed Amendment to Loan Agreement to change the loan closing date to 31 March 

2013; 

Technical and Financial Audit Consultants first round of five audits and the results and 

findings; and 

Variations in Civil Works through design optimisation (balanced budget) - Tabled by 

DGH 

The minutes of JMM No. 6 are presented in Appendix 7. 

Monthly Coordination Meeting 

In the 4 th EINRIP Joint Management Meeting held on 12-Aug-09, AusAID raised the item of 

monthly coordination meetings. The project has 3 separate consultant teams working with PMU 

(PAS, PMSC, and RSC) and it was proposed that all parties agree to have a regular monthly 

meeting with PMU and AusAID/EMU. This initiative was agreed and the monthly coordination 

meeting has been regularly held since September 2009. 

In 2010, the meetings were held on: 

Monthly Coordination Meeting No 4 held on 12 January 2010 at EMU AusAID 

Monthly Coordination Meeting No 5 held on 26 March 2010 at EMU AusAID 

Monthly Coordination Meeting No 6 held on 26 April 2010 at Bina Marga 

Monthly Coordination Meeting No 7 held on 25 June, 2010 at Bina Marga 

Monthly Coordination Meeting No 8 held on 11 August, 2010 at EMU AusAID 

Monthly Coordination Meeting No 9 held on 23 September, 2010 at EMU AusAID 

Monthly Coordination Meeting No 10 held on 18 November, 2010 at EMU AusAID 

Monthly Coordination Meeting No 11 held on 21 December, 2010 at Bina Marga 

Generally, the agenda of these meetings covered: 

Progress on HIV/AIDS campaign for contracts 

Status of ESS studies including land acquisition 

Review the implementation progress on awarded contracts and statys of mobilization of 

RSC Field supervision teams 

Technical and Financial Audit Consultants (TFAC) first round of audits 

Status of Procurement of active packages 

Management Action Plan (MAP) Report 

Update of PMM 

2010 M&E Surveys 



10.5. Management Action Plan (MAP) 

In the 2 nd half of 2009, it was felt that the implementation of EINRIP program is experiencing 

delays and a number of projects that were planned to commence in 2009 will be delayed. 

Primary reasons for delays was delays in land acquisition process and some delays in 

procurement where two packages were decided to be re-bid and a number of clarifications were 

being sought from bidders, thus delaying the award of contracts. 

Informal discussions were held for possible extension to the EINRIP loan, with original loan 

closing date at 1 June 2011. It was proposed to extend the loan to March 2013. 

In October 2009 it was advised that the loan extension is likely to be approved and for this 

purpose it has been sought by GoA that additional monitoring measures be adapted to fast 

track the ongoing land acquisition and procurement process. 

For this purpose, it was desired that a Management Action Plan (MAP) will be prepared by PMU 

to strengthen the existing institutional and procedural arrangements to expedite completion of 

ESS studies, procurement and early commencement of construction contracts for sub-packages 

in EINRIP project. 

A Management Action Plan (MAP) was proposed by DGH and formally agreed with AusAID in 

Jan-Feb 2010. The broad MAP framework is: 

• Identify actions, component tasks and agencies/units responsible in each phase; 

• Develop activity/task monitoring and reporting schedules; 

• Formulating time-based performance benchmarks for key activities; 

• Developing intervention modalities in case of delays and difficulties; and 

• Monitoring and reporting requirements 

The Management Action Plan approved in January 2010 is presented in Appendix 8. 

After the approval of MAP, monthly Summary MAP reports were prepared by PMU for 

submission to AusAID. In 2010, ten reports were produced. 

In the Summary MAP Reports, for land acquisition, the intervention sheets for packages with 

on-going land acquisition were updated each month. Status of procurement and progress on 

ongoing construction contracts was also updated each month. 

10.6. M & E Annual Surveys 

As part of the loan agreement, AusAID is funding a separate Monitoring and Evaluation (M&E) 

programme with the objective to establish the extent to which EINRIP program meets its 

objectives. 

An independent consultant for Monitoring & Evaluation has prepared a separate Monitoring and 

Evaluation programme, intended to establish the extent to which EINRIP meets its objectives. 

Key Performance Indicators (KPI) have been developed by the M&E consultant in consultation 

with DGH and AusAID. These include: 

Traffic Growth 

Road Condition as measured by International Roughness Index (IRI) 

Average speeds 



Accident Rates 

Vehicle Operating Costs 

Baseline surveys commenced in 2007, and further surveys will be carried out between 2008 

and 2013. Annual reports of the results of the survey programme will be prepared. A Final 

Project Review will be undertaken, to provide an overall evaluation of the project. 

In 2010, the M&E surveys were carried out under the supervision of PMSC. Initial discussions 

on TOR of M&E team, arrangements for office space and financing the surveys were held 

between PMSC and AusAID in May/June 2010. It was indicated that the survey will involve 

engagement of 3 teams of 2 staff each, over a period of 3 months. 

The M&E Consultant of AusAID also participated in the administrative arrangements during May 

and June 2010, and a series of meetings were held between AusAID and PMSC on finalising 

the modalities of the M&E survey program for 2010. 

Five batches of surveys were planned for 2010, and were completed by early August 2010. The 

list of surveys is presented in Table 10-3: 

Province Link No Name Dates for Survey 

South Sulawesi 54.034 Watampone - Pompanua 7 - 12 June, 2010 

54.043 Pangkajene Sidrap - Anabanua 

Bali 40.00.2 Negara – Cekik 21 - 26 June, 2010 

40.005 Tabanan – Antosari 

40.039 Sidan – Klungkung 

NTT (Flores) 44.006 Ende - Aegela 

27 June - 2 July, 

2010 

West Kalimantan 30.009.2 Sei Dui - Singkawang 19 - 24 July, 2010 

30.079.1 Tayan - Teraju 

30.079.2 Teraju - Bts.Balai Berkuak 

South Kalimantan 36.011.1 Sp. Liang Anggang - Ds. Liang Anggang 2 – 7 August, 2010 

36.034.2 Empat Harui - Batu Babi 

Table 10-3 

List of 2010 M&E Surveys 

10.7. FIDIC Training and Workshops 

During the initial months of commencement of construction of EINRIP packages and as one of 

the key finding of the TFAC audits, it was generally felt by AusAID and DGH senior 

management that many DGH staff, RSC supervision teams and Contractors often lack clear 

understanding of the contracting environment under EINRIP which is FIDIC based “Conditions 

of Contract for Construction - Multilateral Development Bank Harmonised Edition March 2006”. 

During middle of 2010, EINRIP Monitoring Unit (EMU) under AusAID held discussions with DGH 

and prepared a training program on Contract Administration under FIDC based contract. The 

objective of training was to further educate and familiarize the key stakeholders DGH PPKs, 

RSC teams and Contractors in responsibilities of various parties under the contract and for 

efficient contract administration. The training material and presentations were fully financed by 

AusAID. 

The „Pilot‟ training in English was conducted in Jakarta on 29 September 2010, and in Bahasa 

on 7 October 2010. Based on positive feedback from the participants, AusAID extended the 



training program to EINRIP packages. Three more training workshops were organized in 

Makassar, Bali and in Jakarta during November and December 2010. 

The three regional workshops were conducted in Bahasa language and participants included 

staff from DGH, RSC supervision teams and Contractors. 



11. Loan Extension 

During the JMM No. 7 held in August 2010, and subsequent meetings, it was agreed in principle 

by AusAID and GOI that the EINRIP Loan Closing date may be extended from 1st June 2011 to 

31st March 2013, and it was desired that formal amendment should be prepared and finlaised. 

The amendment of the Loan Agreement will provide for the changed Loan Closing Date and 

other consequences of this; some changes to the allocation of the Loan to the Loan Categories 

originally proposed; and a number of minor changes that have arisen during implementation. 

During September and December 2010, works continued on the analysis and review of funding 

requirements and re-allocation within loan categories. 

Key changes to the loan agreement include: 

No change in loan amount or sharing arrangements. 

Extension to Loan Closing Date (LCD) to 31 March 2013. 

Funds transferred to Special Account prior to LCD may be utilised upto 30 June 2013. 

Re-allocation within loan categories. 

The proposed amendments are summarised in the Table 11-1 below. 

No 

Original 

Project Loan Agreement 

Proposal 

Amendment No. 1 


1. Schedule 2, Section I.A.I.(f) , page 8 

(f) 

the five regional implementation agencies 

of national inter-urban roads in Eastern 

Indonesia under the DGH: (i) Balai Besar 

Pelaksanaan Jalan Nasional in 

Banjarmasin; (ii) Balai Besar Pelaksanaan 

Jalan Nasional in Makassar; (iii) Balai 

Pelaksanaan Jalan Nasional in Denpasar.; 

(iv) Balai Pelaksanaan Jalan Nasional in 

Ambon; and (v) Balai Pelaksanaan Jalan 

Nasional in Jayapura . 

(f) 

the regional implementation agencies 

of national inter-urban roads in 

Eastern Indonesia under Balai Besar 

/ Balai Pelaksanaan Jalan DGH. 

2. Schedule 2, Section I C.8, Page 11 

8. The Republic of Indonesia shall take all 

steps necessary to ensure that the 

Procurement Agent, the Financial Audit 

Consultant, the Technical Audit Consultant, 

and the Monitoring and Evaluation 

Consultants, as defined in the Appendix to 

this Agreement, are permitted to provide 

their services in accordance with their 

contractual terms of reference. 

8. The Republic of Indonesia shall take 

all steps necessary to ensure that the 

Procurement Agent, the Technical 

and Financial Audit Consultant, and 

the Monitoring and Evaluation 

Consultants, as defined in the 

Appendix to this Agreement, are 

permitted to provide their services in 

accordance with their contractual 

terms of reference. 

3. Schedule 2, Section III, A.3 (b) and (c), page 18 

(b) The Republic of Indonesia shall, when 

preparing the Annual Progress Reports: (i) 

take into account the results of the Project 

monitoring and evaluation for such year, 

carried out by the Monitoring and 

Evaluation Consultants, and (ii) prepare the 

Annual Progress Reports on the basis of 

(b) The Republic of Indonesia shall, 

when preparing the Annual Progress 

Reports: take into account the 

results of the Project monitoring and 

evaluation for such year. 



No 

Original 


the performance indicators set forth in subparagraph 

(c) below. 

(c) The performance indicators referred to in 

sub-paragraph (b) above shall, except as 

otherwise agreed by the Commonwealth, 

consist of the following: (i) traffic growth; (ii) 

road condition as measured by 

International Roughness Index (IRI); (iii) 

average speeds; (iv) accident rates; and (v) 

vehicle operating costs. 

Proposal 

Amendment No. 1 


4. Schedule 2, Section IV, A.4, page 20 

Loan Category 

Loan Category changed in: 

Item V. Proposed Re-allocation of Loan 

Category 

5. Schedule 2, Section IV, B.2, page 20 

1. The Closing Date is 1 June 2011 1. The Closing Date is 31st March 

2013. 

6. Schedule 2, Section IV, B.3, page 20 

3. Funds transferred to the designated 

account of the Republic of Indonesia prior 

to the Closing Date may continue to be 

utilised in accordance with this Agreement 

until 31 December 2012. 

3. Funds transferred to the designated 

account of the Republic of Indonesia 

prior to the Closing Date may 

continue to be utilised in accordance 

with this Agreement until 31 Juni 

2013. 

Table 11-1 

Loan Amendment Changes 

The proposed re-allocation of funds is summarised in the Table 11-2 below. 

Loan Category 

Original Allocation 

(AUD) 

Revised 

Allocation 

(AUD) 

1 Civil works 

(under Part 1 of the project) 

229,700,000 257,993,778 

2 Goods 

(i) Under Part 1 (iv) of the project 

(ii) Under Part 2 (iv) of the project 

9,900,000 

300,000 

5,006,222 

3 Incremental Operating Costs 

(under Part 2 (v) of the project) 

700,000 700,000 

4 Consultants‟ services 

(i) Under Part 2 (i) of the project 

(ii) Under Part 2 (ii) of the project 

(iii) Under Part 2 (iii) of the project 

6,300,000 

17,000,000 

1,200,000 

26,300,000 

5 Unallocated 34,900,000 - 

TOTAL (AUD) 300,000,000 300,000,000 

Table 11-2 

Loan Amendment Changes 



The loan extension explanatory note and supporting analysis was completed by DGH in end of 

December 2010 and will be submitted to Bappenas in January 2011. After endorsement of the 

loan amendment, the explanatory note will be sent to Ministry of Finance (MOF) and it is 

targeted to finalise the loan agreement by March 2011. 


Appendices 


APPENDICES 


Appendices 


Appendix 1 

Summary of ESS Studies at 

December 2010 


Appendices 


Appendix 2 

Procurement Plan Approved in 2010 

Version 5 & 6 


Appendices 


Appendix 3 

Status of Procurement Plan 

31 December 2010 


Appendices 


Appendix 4 

Contract Data Sheets of Ongoing Civil 

Works 


Appendices 


Name of Package 

Province 

EBL-01, TOHPATI – KUSAMBA 

Bali 

CONTRACT SUMMARY & PROGRESS DATA 

Contract No. KU.08.08-727-40/EBL-01/NR/ A/L002/1208 Contract Signed December 5, 2008 

Contractor 

JAYA KONSTRUKSI – DUTA GRAHA 

INDAH, JO 

Commencement Date February 25, 2009 

Contract Amount Rp. 180,819,429,297 (incl VAT) Time for Completion 730 days 

Project Scope 

PROGRESS REPORT 

Reporting Period December 2010 


Effective length : 10.79 kms 

Dual carriageway : (2x7x0.5) m and 

(0.5x7x2) m 

10 Bridges, 30 Culverts, 16 Syphons 

Scheduled 

Actual 

Deviation 

Disbursement/Payment Status (incl VAT) 

Advance Payment: Rp. 18,081,942,928 

IPC#1, 2, 3 Rp. 2,414,453,292 

IPC # 4, 5 Rp. 10,567,996,932 

IPC#6 Rp. 9,280,124,695 

IPC#7 Rp 4,111,037,332 

IPC#8 Rp 2,881,470,894 

IPC#9 Rp. 8,906,763,405 

IPC#10 Rp. 5,384,773,949 

: 

: 

: 

96,35 % 

74,26 % 

- 22.09 % 

Defects Notification Period 

Contract Time elapsed 

(days and %) 

365 days 

675 days 

92.50 % 

IPC#11 Rp. 4,906,154,028 

IPC#12 Rp. 14,893,015,993 

IPC#13 Rp. 3,341,640,804 

IPC#14-15 Rp 3,646,702,631 

IPC#16 Rp. 9,844,509,767 

IPC#17 Rp. 8,342,248,041 

IPC#18 Rp. 5,887,554,549 

Total: Rp. 112,492,389,237.04 (62.21 %) 

PROJECT ISSUES & ACTION 

Contractor was instructed to improve boring equipment for achieving 16m pile depth at Tukad Udang udang bridge in Jan 

2010. TFAC finding result suggested all work on Tukad Udang-udang bridge should be suspended, pending the outcome of 

detailed technical review. The revised design for Tukad Udang-Udang bridge is under review by AusAID. 

Re-design for pier at Tukad Was bridge was completed in Feb 2010 

VO no 3 covering additional quantity and new pay item was in prepration but was not finalized till end of 2010. The draft was 

formally submitted to AusAID for NOL on 13 August 2010. AusAID did not issue NOL to the amendment due to incomplete 

technical justification and disagreement with a number of items. 

Rigid pavement between km 3+950 and 4+070 was removed completely. 

RSC terminated the SSE, Quality Engineer, surveyor and inspector on July 2010 due to poor performance 

As a follow up of the TFAC audit, RSC conducted additional investigations and at STA 4+020 found that the aggregate Class 

A did not meet specifications and the thickness of lean concrete was less than design thickness. SQPMS-RSC inspection 

showed clearly the materials for aggregate base fully natural and uncrushed below lean concrete. Base on this finding, TL- 

RSC suspects that the aggregate class A below of the lean concrete is not adequate with specification. 

For further analysis, RSC had initially instructed demolition of one slab in every kilometer. Later this instruction was revised to 

a lesser destructive testing method i.e. coring at every 250 m to a depth of 42 cms, for testing for thickness, mix and strength. 

Removal of Rigid pavement between STA 3+950 and 4+070 was ordered by the Engineer. 

With the exception of bridges works, the Engineer suspended the works effective on 27 September 2010 due to the lack of 

competent management and as many Engineer’s instruction were not followed by the Contractor. The Tukad Udang Udang 

Bridge works were suspended on 22 September 2010. 

New road section at STA 3+600 failed, demolition of this section in progress 

Inadequate control of traffic diversion was seen on detours/ramps. Contractor instructed to maintain detours and provide lights 

at at night. 


Appendices 



Appendices 



Name of Package EBL- 02, TOHPATI – KUSAMBA Stage 2 

Province 

Bali 

Contract No. 02-40/EBL-02/NR/A/L002/1209 Contract Signed 10 December 2009 

Contractor 

PT. ADHI KARYA – PT.WASKITA KARYA 

(Persero), JO 

Commencement Date 1 March 2010 

Contract Amount Rp. 175,610,522,000 (incl 10%VAT) Time for Completion 730 Calendar Days 

Project Scope 





Dual carriageway, (2x7x0.5) m and 

(0.5x7x2)m 5 new bridges, 1 aqua duct, 

extension of 47 box culverts, and 18 

syphons 

Scheduled 

Actual 

Deviation 

: 

: 

: 

30.01 % 

32.64 % 

+ 2.634 % 



(days and %) 

365 Calendar Days 

306 days 

41.90 % 


Advance Payment: Rp 14,048,841,760 (8%) 

IPC#1-2 Rp. 5,473,661,860 

IPC#3 Rp. 5,360,793,588 

IPC#4 Rp. 7,342,343,728 

IPC#5 Rp 5,522,485,734 

IPC#6 Rp 6,663,543,052 

IPC#7 Rp 1,565,158,787 

IPC#8 Rp 7,888,766,124 

IPC#9 Rp 10,476,994,653 

Total: Rp. 64,342,589,286 (36.64 %) 


No Pay item for clearing and grubbing works (pay item 3.4.3) 

Dimension of box culverts extension do not match with the existing box dimension, and there have been complaints from local 

farmer irrigation society (SUBAK). 

SSE has instructed the Contractor to prepare drawings for revised design for 5 syphons and 7 box culverts. 

Contractor Quality Control Plant has been submitted to the Engineer for approval. 

Variation Order No 1 for changed mobilization schedule has been submitted to Balai for approval. 

Activities going as planned on various items and project ahead of schedule. 

Variation Order No.2 is under revision of the Contractor. 


Appendices 


Name of 

Package 

Province 

EKB-01, PONTIANAK – TAYAN 



Contract No. 03-30/EKB-01/NR/A/L002/0409 Contract Signed 20-Apr-09 

Contractor PT. WASKITA KARYA Commencement Date 24-Jul-09 

Contract 

Amount 

Project Scope 


Reporting 

Period 

Physical 

Progress 

Rp. 137,336,950,000 (incl VAT) Time for Completion 730 calendar days 


Carriageway : 6 m with 1.5 m shoulders 39 

Box Culvert/RCP, 67 Corrugated Pipe 

Culvert 

December 2010 

Scheduled 

Actual 

Deviation 

: 

: 

: 

71.02 % 

66.45 % 

- 4.56 % 



(days and %) 

365 days 

526 days 

72.10 % 



IPC#1,2,3 Rp. 4,448,123,185 

IPC#4,5,6 Rp. 11,397,441,697 

IPC#7, 8 Rp. 9,725,556,575 

IPC#9,10 Rp. 11,208,262,796 

IPC#11,12,13 Rp. 10,490,063,800 

IPC#14, 15 Rp. 11,833,217,641 

IPC#16, 17 Rp. 12,947,579,746 

Total: Rp. 85,783,940,437.66 (62.46%) 


Laying of geo textile commenced on January 2010 for preloading. 

AMP and Aggregate blending Plant were calibrated and operational in March 2010. 

JMF for AC-BC and mobilization of Asphalt finisher and Asphalt distributor was completed in April. 

VO meeting was held on 1 April 2010 between Balai, Wilayah Timur, PPK, PMU, PMSC and RSC. 

Quality Control Plan by contractor was completed by May 2010. 

In the VO discussion held on 17 June 2010 agreed that there is no alternative selected for road formation width and it was decided 

to follow the original design. 

For alignment change shown in VO no.1 that have differences regarding centre line and elevation compared to design drawing, 

possibly the survey for staking out design drawing is not correct. 

Related the VO No.1, Head of Sub Directorate of Road Technical on 26 August 2010 has decided to revert to original design 1.5- 

6-1.5 m and for differences of surveying, it was decided by Head of Sub Directorate of Road Technical to involve third party 

independent Surveyor for evaluate which survey is correct. 

TFAC Audit was done on July 2010 and found some non conformity. Special observation from TFAC is concerning coal fire / 

burning asphalt plant. Certificate from Balai related to the Asphalt Plan operation was received, 

In the Bawas Lestari Bridge at STA 15 + 300 is a 30 m single slab, steel girder and RCC slab bridge (not part of EKB-01 contract), 

one the abutment has started tilting towards approach and the bridge is unsafe for traffic. RSC has completed the preliminary 

investigations and report submitted to Client. In the interim, the construction of fill on the abutment has been stopped by RSC and 

existing material has been removed. 

VO No.1 is still under preparation. 


Appendices 



Appendices 



Province 

Contract No. 

Contractor 

ONTRACT SUMMARY & PROGRESS DATA 

ESU-01, MOLIBAGU – MAMALIA - TALUDAA 


KU.08.08-01-50/ESU-01/NR/A/AIPRD- 

L002/1209 

PT.NINDYA KARYA (Persero)– PT BUMI 

KARSA, JO 

Contract Signed 2 December 2009 


Contract Amount Rp. 42,663,776,000 (incl VAT) Time for Completion 540 days 

Project Scope 5 Bridges replacement Defects Notification Period 365 days 




Scheduled 

Actual 

Deviation 


: 

: 

: 

29.50 % 

8.63 % 

-20.87 % 


(days and %) 

306 days 

56.70 % 


Advance Payment: Rp. 4,266,377,600 (10%) 

IPC#1,2,3 Rp 1,684,504,991 

IPC#4 - 7 Rp 1,757,805,661 

Total: Rp. 7,708,688,252 (18,07 %) 

Consultant’s Bridge Engineer has not been mobilized up to April 2010 

Slow mobilization of major equipment. The main equipment for bore pile for this work was not mobilized till November 2010 

Limited information from this package regarding communication problem. No fixed telephone facility and mobile phone signal 

in this project area. Additional budget was proposed for fuel, satellite phone and operational cost satellite phone. Due to this 

problem late receipt of the weekly report submitted every week by SSE to PMU-EINRIP. 

CSE has instructed investigations for checking the strength of existing abutment and underlying foundation of Pilolahunga 

Bridge. Subject to results of investigations, the existing embankment may not be strong to resist seismic loading in which case 

new abutments and foundations has to be designed and design to be revised. 

A meeting to review progress was held on 14 October 2010 

Contractor has been instructed by Engineer to re-submit Traffic Management and Quality control plans. 


Appendices 



Province 


ENB- 01AB, SUMBAWA BESAR BYPASS 

West Nusa Tenggara (NTB) 

Contract No. 01-23/ENB-01AB/NR/A/L002/0309 Contract Signed 16 March 2009 

Contractor 

PT. JAYA KONTRUKSI MANGGALA 

PRATAMA Tbk 

Contract Amount Original: Rp. 66,983,600,000 

Amendment 1 & 2 approved in Dec-09 

Revised: Rp 71,511,445,000 (incl VAT) 

Project Scope 




(based on revised 

program) 

Effective Length : 11.2 Kms 

(9.029 km @ 7.0 m; 2.171 km @ 6.0 m) 

Culverts: 10 new, 18 replacement, 19 syph 

Scheduled 

Actual 

Deviation 


: 

: 

: 

81.30 % 

54.03 % 

- 27.28 % 

Commencement Date 5 June 2009 

Time for Completion 



(days and %) 

540 days (original) 

640 days (revised) 


575 days 

89.80 % 



IPC#1,2,3,4,5 Rp. 2,969,340,557 

IPC#6,7 Rp. 4,770,952,876 

IPC#8,9,10 Rp. 3,182,663,343 

IPC#11 Rp. 2,104,972,178 

IPC#12,13,14 Rp. 3,453,145,470 

IPC#15 Rp. 1,015,025,350 

IPC#16 Rp. 1,596,303,369 

IPC#17 Rp. 3,049,588,839 

IPC#18 Rp. 7,354,459,190 

Total: Rp. 36,194,810,872.91(50.61 %) 

Additional retaining walls need to be constructed at several locations to protect people houses form collapse due to excavation activity, 

PPC design integration did not accommodate this structure in drawing 

There are problems with relocation of PLN electric poles within widening area. PLN specification need extra poles if relocated in 

residential area and need additional transformer. The quantity for related works is not sufficient and provided in the BOQ, as the BOQ 

covered relocation for PLN electric pole only – did not include material related to PLN electric pole (like transformer and cable). PLN 

advised that they have no budget for this activity, and additional budget was proposed. 

NOL to contract amendment for relocation of utilities has been issued by AusAID 

Variation Order for additional quantity and Technical Justification under process 

The first meeting for VO 3 at level Balai was held in Jakarta on 11 May 2010. Unfortunately as same like others Technical Justification 

prepared by RSC, this TJ was not endorsed by TL-RSC, only approved by SSE. Too much delay by RSC in preparing this TJ 

Amendment No. 3 (additional quantity) + Technical Justification to cover all problems above has been endorsed by TL-RSC and is 

under discussion. 


Appendices 



Name of Package ENB-01C, PAL IV – KM 70 

Province 


Contract No. 02-23/ENB-01C/NR/A/L002/1209 Contract Signed 9 December 2009 

Contractor PT. JAYA KONSTRUKSI – DUTA GRAHA, JO Commencement Date 1 March 2010 

Contract Amount Rp. 145,604,273,000 (incl VAT) Time for Completion 730 calendar days 

Project Scope 


Carriageway : 6m wide 2x1.5m shoulders 

Culverts: 5 new 


365 days 




Scheduled 

Actual 

Deviation 


: 

: 

: 

27.70 % 

8.53 % 

- 19.16 % 


(days and %) 

306 days 

41.90 % 


Advance Payment: Rp 14,560,427,300 

IPC#1,2,3,4 Rp 2,118,530,188 

IPC#5,6 Rp 1,740,391,011 

IPC#7,8 Rp 1,619,420,618 

IPC#9 Rp 7,376,617,326 

Total: Rp. 27,415,386,442.72 (18.83 %) 

Slow mobilization and delay in obtaining permits for base camp and quarry activities 

Reported mobilization is still in progress. Penalty must be applied for this delay. 

3 bridges included in the contract were recently completed under APBN project; there will be reduction contract cost. 

RCTA applied in this project with depth 22 cm. The average existing asphalt thickness is 15 cm. The next layer is gravel with average 

thickness 5 cm . After that the layer is Telford foundation. Telford layer can not be milled by recycling machine. Due to RCTA elevation 

was defined in design drawing and RCA thickness is 22 cm, application RCTA for this condition difficult to be applied. 

Variation Order No 1 that includes relocation of PDAM utility pipes and PLN poles additional quantities for embankment and granuilar 

material has been endorsed by RSC TL on 27-Oct-2010 for approval process. 

Contractor has been instructed by Engineer to re-submit Traffic Management and Quality control plans 


Appendices 



Province 


ENB-02, KM 70 – Bts. CABDIN DOMPU 


Contract No. 04-23/ENB-02/NR/A/L002/1209 Contract Signed 14 December 2009 

Contractor PT. SUMBER SARI CIPTA MARGA Commencement Date 6 April 2010 

Contract Amount Rp. 68,261,116,000 (incl 10%VAT) Time for Completion 540 calendar days 

Project Scope 





Carriageway: 7 m with 2x2m shoulders 

Rehabilitation of 7 Bridges, 33 Culverts 

and 30 new culverts. 

Scheduled 

Actual 

Deviation 

: 

: 

: 

41.63 % 

5.22 % 

- 36.41 % 



(days and %) 

365 calendar days 

270 days 

50.00 % 



IPC#1,2,3,4,5 Rp 1,358,088,336 

IPC#6,7 Rp 2,.509,685,284 

IPC#8 Rp 715,959,429 

Total: Rp. 11,409,844,648.65 (16.71 %) 


Commencement of work delay as PAP have not yet received the payment by March 2010 

Management and financial problems, contractor’s GS was absent from the project since 17 May 2010. New GS arrived on 12 

June 2010 

Variation Oder under preparation to cater for possible realignment, rock excavation, slope protection works. 

8 months elapse (per December 2010), field engineering reported still in process 

Lack of proper management, limited personnel to adequate the activity by Contractor and financial problems still not resolved 

Deviation by December 2010 was -36.41% (critical condition), SCM 2 was held on 24 November 2010 


Appendices 



Province 


ENB 03, BTS CABDIN DOMPU - BANGGO 


Contract No. 03-42/ENB-03/NR/A/L002/1209 Contract Signed 10 December 2009 

Contractor 

PT. ADHI KARYA – PT.WASKITA KARYA 

(Persero), JO 


Contract Amount Rp. 101,927,591,000.00 (incl. 10%VAT) Time for Completion 540 Calendar Days 

Project Scope 



Single Carriageway 6m + 2x1.5m 

shoulders 

34 box culverts 



Scheduled 

Actual 

Deviation 

: 

: 

: 

15.84 % 

6.50 % 

- 9.34 % 



(days and %) 


306 days 

56.70 % 



IPC#1,2,3,4,5,6 Rp. 6,614,111,710 

IPC#7,8 Rp. 1,933,556,277 

PC#9 Rp. 1,292,635,510 

Total: Rp. 20,033,062,596.31 (19.65 %) 


All consultant member have been mobilized on April 2010, 

Up to June 2010 Stone crusher has not been complete erected. 

Mobilization is still in progress. Penalty must be applied for this delay of mobilization. 

Stationing and Field engineering survey are in progress 

The erection of stone crusher has not yet been finished. This delay will cause delays in production of crushed stone. 

Variation Order under preparation that covers rock excavation, improvement of expansive soils, possible realignment. 

Rock excavation works were not accommodated in present design. Due to this additional works, this project proposed 

additional budget approximately Rp. 76 billion including rock excavation. This VO-01 is under review. 


Appendices 



Province 


ESR-01, TINANGGEA – KASIPUTE 


Contract No. KU.08.08-55/ESR-01/056/NR/A/L002/0409 Contract Signed 02 April 2009 

Contractor 

PT. MULTI STRUCTURE – PT. TRIFA 

ABADI, JO 

Commencement Date 13 July 2009 


Project Scope 





Carriageway : 6 m with 1.5 m shoulders 

5 Bridges, 21 Culverts 

Scheduled 

Actual 

Deviation 

: 

: 

: 

73.74 % 

26.86 % 

- 46.88 % 



(days and %) 


537 days 

73.60 % 



IPC#1,2,3 Rp. 1,512,088,272 

IPC#4,5 Rp. 2,074,596,120 

IPC#6,7 Rp. 2,162,700,557 

IPC#8 Rp. 2,752,818,052 

IPC#9 Rp. 1,593,111,739 

IPC#10 Rp. 960,337,644 

IPC#11, 12 Rp 1,833,615,065 

IPC#13 Rp 913,040,813 

IPC#14-15 Rp 1,166,605,053 

IPC#16 Rp 1,070,386,100 

IPC#17 Rp 11,592,833,928 

Total: Rp. 39,205,168,843.71 (33.88 %) 


AMP and aggregate blending plan under construction, some equipment still not complete per January 2010. 

SCM 1 was carried out on 04 Feb 2010. 

Cash flow problem, insufficient supply of stone for stone crusher regarding limited material resources. 

Aggregate Blending Plant operating start on April 2010 but poor supervision. 

SCM 2 held on 31 May 2010 

Pre-Show Cause Meeting (SCM 3) was held on July 13 in Jakarta. A one month test case was agreed for mobilization of 

additional equipment only. Contractor has agreed to mobilize additional equipment such as 1 unit motor grader, 1 unit 

aggregate blending machine, 1 unit stone crusher, 1 unit vibro compactor, 2 unit excavator and 6 unit hydraulic breaker. All 

equipment reported by SSE-RSC status 31 July 2010 has departed from origin place to Tinanggea. 

Considering the difficulty to get permit for exploration Linea quarry, Contractor has proposed 3 locations for quarry (Batu 

Langkapa, Tompo Batu and Bumi Raya). The formal permit to exploration the quarry from Local Government fo Langkapa and 

Tompo Batu have been obtained, for Bumi Raya under process. With this condition, stone crusher installed in Linea to be 

dismantled and moved to Tatanggea (quarry Tompo Batu). 

MOU between Contractor and management of National Park for disposal areas reported still in process 

TFAC Audit carried out on July 2010 and a number of site instructions were conveyed to the Contractor. 

Currently Contractor has 3 stone crushers (all 3 crushers operating). The contractor has one aggregate blending plant with 

capacity 25 ton/hour and one aggregate blending plant with capacity 50 ton/jam, both are operating. 

VO No. 1 was approved by Engineer on 24 May 2010 for additional cost of Rp. 9,226,304,000. This VO was discussed in 

December 2010 and the draft VO has been sent back for revision and improvement by RSC. 


Appendices 



Appendices 



Province 


ESR-02. BAMBAEA - SP. KASIPUTE 


Contract No. KU.08.08-530/ESR-02/056/NR/A/L002/1209 Contract Signed 02 December 2009 

Contractor PT. BUMI KARSA – PT.NINDYA KARYA, JO Commencement Date 30 April 2010 

Contract Amount Rp. 95,598,144,012.27 (incl 10%VAT) Time for Completion 540 calendar days 

Project Scope 





Carriageway: 6m with 2x1.5m shoulders 

1 new bridge, 10 bridges rehabilitation and 

13 new culverts 

Scheduled 

Actual 

Deviation 

: 

: 

: 

21.14 % 

14.07 % 

- 7.07 % 



(days and %) 


246 days 

45.60 % 



IPC#1,2 Rp. 1,322,936,420 

IPC#3 Rp. 1,161,627,749 

IPC#4 Rp. 1,922,175,644 

IPC#5 Rp. 1,500,300,007 

IPC#6 Rp. 2,010,405,098 

IPC#7 Rp. 6,818,794,143 

Total: Rp. 24,296,053,462.12 (25.41 %) 


Only SSE and Quantity Engineer were mobilized in May 2010. 

Contractor must find a new location of quarry to anticipation of shortage of material from Lawaeya. This problem must be 

anticipated by Contractor. Contractor must find a new location of quarry in anticipation of this shortage. 

7 months (by December 2010) after commencement, field engineering reported still in progress. 

The contractor claim for new pay item of delivery cost from Cituerup to the project location, bridge erection cost and rock 

excavation as they were not accommodate in the Contract (BoQ). 

Boring equipment still not mobilized. 

Replacement Quality Control Manager accepted by Engineer on 17 December 2010. 

Design change may be required for Rau Rau brigde at Sta 0+133 as existing bridge is narrow. 


Appendices 



Province 


ESS-01, SENGKANG – IMPA IMPA – TARUMPAKKAE 


Contract No. 02-54/ESS-01/NR/A/L002/1209 Contract Signed 10 December 2009 

Contractor PT. MULTI STRUCTURE Commencement Date 1 March 2010 

Contract Amount 

Project Scope 




Original: Rp. 100,650,347,589.67 

Amendment 1 approved in Apr-10 

Revised: Rp 100,903,347,590 (incl VAT) 


Carriage way : 7m (3.25km), 6m 

(20.925km) and 2x1.5 shoulders 

Rehabilitation of 6 Bridges, Replacement 

of 1 bridge 

Scheduled 

Actual 

Deviation 

: 

: 

: 

21.11 % 

11.51 % 

- 9.60 % 

Time for Completion 



(days and %) 



306 days 

42.50 % 


Advance Payment: Rp 10,065,034,759 (9.97 %) 

IPC#1-10 Rp. 8,433,289,017 

Total: Rp. 18,498,323,774.82 (18.33 %) 


Routine maintenance for road and drainage has not been started by April. 

No activities carried out on June 2010 except for tree removal only. 

Construction of AMP, Stone crusher and Blending plant unit were completed on August 2010 except for electrical installation. 

Stone masonry retaining walls constructed are of poor quality, not accepted by the Engineer. 

Contractor’s Quality Control Plan (QCP) still in process by Engineer. 

Reported mobilization is still in progress / not yet complete. Penalty must be applied for this delay as has been already 9 

months. 

Field Engineering is in progress and changes in the quantities under analysis. 

Contractor has been instructed by Engineer to re-submit Traffic Management and Quality control plans. 

VO No. 1 for changes in mobilization period for equipment has been endorsed by RSC TL. No impact on cost/time. 


Appendices 



Province 


ESS-02, BANTAENG – BULUKUMBA 


Contract No. 01-54/ESS-02/NR/A/L002/0509 Contract Signed 19-May-09 

Contractor 

PT. WASKITA KARYA - PT. BRANTAS 

ABIPRAYA JO 

Commencement Date 

15-Oct-09 


Project Scope 




Effective length : 26.9 

0 kms 

Carriageway : 6 m with 1.5 m shoulders 7 

Bridges, 19 Culverts, 3 Syphons 

Scheduled 

Actual 

Deviation 

: 

: 

: 

57.50 % 

17.20 % 

- 40.31 % 



(days and %) 


443 days 

60.70 % 



IPC#1,2,3,4,5,6,7 Rp. 6,583,820,958 

IPC#8,9,10,11 Rp. 3,387,376,078 

IPC#12,13,14,15 Rp. 7,921,581,105 

Total: Rp. 30,352,783,641.09 (24.36 %) 


Mobilization Period expired on 12 Jan 2010. 

Temporary bridge to be provided Contractor’s cost. 

Contractor’s Quality Control Plan has been approved by Engineer. 

SCM No 1 was held on 16 April 2010 

Variation order for reinstatement works in process. 

Aggregate blending Plant installation finished in July 2010. Spun piles and pre-stress beams, temporary bridge finished in July 2010 

TFAC Audit was carried out on July 2010 and found some non conformity. Special observation from TFAC is concerning coal fire / 

burning asphalt plant. This equipment is still without any certificate. 

RSC has instructed Contractor on 24-Aug-10 to replace Quality Control manager due to non-performance.. 

Blending plant has been fully operating on September 2010. 

Show Cause Meeting No 3 has been requested by SSE to the PPK.. 

VO 2 amounting to Rp. 8.54 million was endorsed by Engineer on 17 December 2010. 


Appendices 



Province 

ESH-01, LAKUAN - BUOL 

Central Sulawesi 


Contract No. 01-52/ESH-01/NR/A/L002/0510 Contract Signed 25 May 2010 

Contractor PT. Brantas Abipraya Commencement Date 7 October 2010 

Contract Amount Rp. 128,448,797,000 (incl 10%VAT) Time for Completion 540 Calendar Days 

Project Scope 




Treatment of road is: 16.236 km. 

Replacement of 2 temporary single-lane 

bridges with new bridges having a total 

length of 425 metres. 

Bridge approach roads will comprise a 

total of approximately 2km of road with a 

width of 6 m with two 1.5 m shoulders 

built on embankment. 

Scheduled 

Actual 

Deviation 


: 

: 

: 

3.19 % 

3.38 % 

+ 0.19 % 



(days and %) 


86 days 

15.90 % 


Advance Payment: Rp 10,277,675,000 (10.03 %) 

IPC#1 Rp. 2,983,520,374 

Total : Rp. 13,261,195,374.18 (12.94 %) 

The General Superintendant and Quality Control Manager, included in the bid are to be replaced by the Contractor. No 

candidate submitted yet. 

CSE instructed for proper disposal of excavated material 


Appendices 


Appendix 5 

Payment Monitoring Table for Loan 

Categories 


Appendices 



Appendices 


Appendix 6 

Performance Indicators for 2010 ACAP 

Implementation Audit 


Appendices 


No INDIKATOR/SUB INDIKATOR PENJELASAN USUL REVISI 

I Pengelolaan Website (bobot 15%)/ Establishment of Website (Scoring 15%) 

1. Website sudah ada sejak awal proyek fisik, dan mudah diakses 

Project Website has been established before the Civil Works contract can commence 

and easy to access 

2. Manual manajemen proyek telah di-upload pada website 

Project Management Manual has been uploaded on website 

3. Rencana pengadaan telah di-upload pada website 

Procurement Plan has already been uploaded on website 

4. Dokumen lelang telah di-upload pada website 

Tender documents has already been uploaded on website 

5. Dokumen lelang dapat di-download 

Tender documents can be downloaded 

6. Kontrak yang telah ditandatangani dengan menyajikan nama perusahaan, nilai kontrak, lingkup dan 

lokasi pekerjaan telah di-upload pada website 

(Penyajian harus lengkap) 

Signed Contract Documents completed with the name of Contractor, contract value, 

and sub-project location has already been uploaded on website 

(Information should be complete) 

7. Ringkasan hasil audit (final) telah di-upload pada website 

Summary of the final audit results has already been uploaded on website 

8. Laporan Bulanan Progres Proyek untuk setiap sub proyek setiap bulan telah di-upload pada website 

(Laporan harus diupload paling lambat tanggal 20 bulan berikutnya) 

Monthly Project Progress Report for civil works on each sub-project has already been 

uploaded on website 

(The report should be uploaded at least at the 20 th of the next month) 

9. Laporan Triwulanan Monitoring Keuangan untuk masing-masing sub-proyek telah di-upload pada 

website 

(Laporan harus diupload paling lambat tanggal 20 setelah akhir triwulan) 

Quarterly Financial Monitoring Report for each sub-project has been uploaded on 

website 

(The report should be uploaded at least at the 20 th after the end of quarter) 

10. Informasi tentang Mekanisme Penanganan pengaduan EINRIP dan cara menghubunginya telah di- 

Seluruhnya (nomor I) 

dilaksanakan oleh Tim Evaluasi 

Pusat 

All (Point No 1) are 

conducted by the 

Central Evaluation 

Team 

harus diupload setiap bulan, 

paling lambat tanggal 20 bulan 

berikutnya 

Should be uploaded 

every month, at least 

at the 20th of the next 

month. 


Appendices 



upload pada website 

Information on EINRIP Complaints Handling Mechanism including contact details 

has been uploaded on website 

11. Laporan triwulanan atas status pengaduan yang diterima dan ditangani telah di-upload pada website 

(Laporan harus diupload setiap triwulan) 

Quarterly report on status of complaints handling has been uploaded on website 

(The report must be uploaded quarterly) 

12. Laporan triwulanan tentang sanksi yang dijatuhkan terhadap kontraktor atau konsultan sesuai seksi 

E ACAP telah di-upload pada website 

(Laporan harus diupload setiap triwulan) 

Quarterly report on sanction imposed to contractors or consultants under section E of 

this ACAP has been uploaded on website 

(The report must be uploaded quarterly) 

II Persiapan Lelang (bobot 20%)/ Bidding Preparation (Scoring 20%) 

1. Procurement Advisory Service (PAS) melakukan tindakan untuk membantu, mendeteksi dan 

mencegah praktek-praktek KKN dalam proses pelelangan dan membantu serta memonitor 

pelaksanaannya. 

PAS is taking action to support, detect and prevent Corruption, Collusion and 

Nepotism during the procurement process and monitorize the implementation 

(Dibuktikan dengan adanya dokumen yang turut ditanda tangani oleh PAS : 

(Proven with the documents also signed by PAS: 

Minute of Bid Submission and bid Opening 

Form 4 Bid Prices and Bid securities (ass read out) 

Form 4A List of Substantial Important Documents comprising the bid 

Laporan Wakil Masyarakat yang ditandatangani wakil yang bersangkutan/ 

Report from Public Stakeholders signed by the representatives) 

Jika dokumen tersebut tidak ada/tidak lengkap maka dijawab dengan “Tidak”. 

If the document is not available/incomplete, please mark with “NO” 

2. PAS memantau ketaatan panitia pengadaan terhadap jadwal lelang dan untuk memastikan bahwa proses 

lelang dan penetapan pemenang dibuat berdasarkan kerangka waktu yang telah disetujui, dan kelambatan 

harus diupload setiap triwulan, 

paling lambat tanggal 20 bulan 

setelah akhir triwulan 

Should be uploaded 

every 3 months, at 

least at the 20th after 

the end of quarter. 

Sebagai bahan evaluasi pusat 

As central evaluation 

materials 


Appendices 



serta risiko yang menyertai dapat dihindari. 

PAS to monitor the procurement committee compliance to procurement plan and 

ensure that the procurement process and establishment of winner are based on the 

agreed time frame, and the delay or the accompanying risk can be avoided. 

3. PAS telah memberikan bantuan atas pelaksanaan bertahap e-procurement untuk masing-masing 

provinsi 

PAS has provided assistance for the phasing execution of e-procurement process in 

each province. 

4. Kasatker/PPK telah menyerahkan konsep Harga Perkiraan Sendiri, Owner Estimate (OE) kepada 

PMU untuk di-review kecermatannya sekurang-kurangnya 14 hari sebelum dokumen lelang 

dikeluarkan. 

The Contract Officer for each contract has submitted the OE to the PMU for review of 

its accuracy at least 14 days before the bidding documents issued 

5. Pelelangan dilaksanakan oleh panitia lelang yang khusus dibentuk untuk paket pekerjaan yang 

dilelangkan 

Procurement exercised by procurement committee specifically established for 

individual package tendered 

6. PAS mengadakan pelatihan kepada panitia pengadaan tentang prosedur lelang untuk EINRIP 

PAS has provided procurement committees with a procurement training on bidding 

procedure for EINRIP 

7. Setiap Panitia lelang telah mengikuti pelatihan yang dilaksanakan oleh PAS tentang prosedur lelang 

untuk EINRIP 

Each member of Procurement committees have attended a procurement training on 

bidding procedure for EINRIP provided by PAS 

8. Kasatker/PPK dan setiap anggota Panitia Pengadaan telah menandatangani Pakta Integritas sesuai 

“Formulir 2‟ Bab V Keppres 80/2003 sebelum lelang diiklankan 

An integrity pact in the form of „FORM 2‟ Chapter V of Presidential Decree 80/2003 

has been signed by Kasatker/ PPK and each member of the procurement committee 

before the tender advertisement is placed 

9. Pengumuman Lelang telah diiklankan pada koran nasional yang beredar di provinsi dimana lelang 

tersebut diadakan 

Tender notification has already been advertised in national newspapers readily 


Appendices 



available in the province in which procurement is being undertaken 

10. Pengumuman Lelang telah diiklankan pada sistem semi e-procurement Kementerian PU 

Tender notification has already been advertised on the MPW Semi e-Procurement 

system 

11. Pengumuman Lelang telah dimumkan pada website EINRIP 

Tender notification has already been announced on the EINRIP website 

12. Pengumuman Lelang telah dimumkan pada website DG market 

Tender notification has already been announced on DG market 

13. Tidak dilaksanakan Rapat penjelasan lelang (aanwijzing), kecuali dengan persetujuan tertulis 

sebelumnya dari AusAID 

No pre-bid conferences will be held, except with AusAID‟s prior written approval 

14. Peserta lelang dapat memperoleh dokumen lelang dengan cara download dari Semi e-Procurement 

atau soft copy/hard copy dokumen lelang sampai dalam waktu 24 jam sebelum batas akhir 

pemasukan lelang 

Bidders may obtain bidding documents by down-loading from semi e-procurement or 

soft copy/hard copy of bidding documents be available up to 24 hours prior to the 

deadline for submission 

15. Nilai OE diumumkan dalam dokumen lelang 

Total value of OE be provided in bidding documents 

III Evaluasi lelang (bobot 20%)/ Bidding Evaluation (Scoring 20%) 

1. Panitia lelang membuka penawaran di depan umum, di hadapan wakil-wakil peserta lelang, serta 

pada alamat, tanggal dan waktu yang disebutkan dalam data lelang 

Bids will be opened in public by procurement committee, in the presence of the 

bidder‟s representative at the address, date and time specified in bidding data 

2. Pembukaan penawaran disaksikan oleh wakil masyarakat yang diundang panitia lelang untuk hadir 

Bid opening must be witnessed by representative from relevant local civil society 

invited by the procurement committee 

3. Pembukaan penawaran disaksikan oleh Penasehat Pelelangan (PAS) 

(Jika jawaban “Ya” maka langsung ke nomor 5. Nomor 4 dijawab “N/A”) 

Bid opening must be witnessed by PAS 

(If the answer “YES”, then go directly to item 5. Item 4 marked with “N/A”) 


Appendices 



4. PAS menunjuk Notaris Publik untuk melaksanakan fungsinya bila PAS tidak bisa menghadiri 

pembukaan penawaran 

PAS appoint a Public Notary to discharge his function if PAS is unable to attend a bid 

opening for any reason 

5. Penawaran yang diusulkan untuk menjadi pemenang lelang harus dilampiri Pakta Integritas dalam 

formulir sesuai „Formulir 2‟ Bab V Keppres 80/2003 atau formulir yang dilampirkan dalam 

dokumen lelang (yang ditandatangani oleh masing-masing Peserta Lelang dan diserahkan bersama 

dengan penawarannya) 

The bidder proposed to be the winner must attach an integrity pact in the form of 

“FORM 2” Chapter V of Presidential Decree 80/2003 or the form attached in bidding 

documents (signed by each bidder and submitted with their bids) 

6. Wakil-wakil dari organisasi kemasyarakatan setempat yang relevan diundang pada setiap 

pembukaan penawaran, sekurang-kurangnya 7 (tujuh) hari sebelumnya akan diberitahu tanggal dan 

tempat pembukaan penawaran 

Representative from relevant local civil society organisations be invited to each bid 

opening, at least seven days in advance will be given notification regarding the date 

and location of bid opening 

7. Batas waktu pemasukan penawaran tidak kurang dari 30 (tiga puluh) hari kerja atau 42 (empat 

puluh dua) hari kalender setelah Pengumuman Lelang 

Bid submission deadline is a minimum of 30 (thirty) working days or 42 (forty two) 

calendar days after the bidding announcement 

8. Setiap halaman dari Surat Penawaran dan Bill of Quantities diparaf oleh dua orang wakil Peserta 

Lelang yang hadir dan berasal dari perusahaan dan Joint Venture, Consortium or Association 

(JVCA) yang berbeda 

Each page of a bid proposal and Bill of Quantities must be signed by two 

representative bidders and they are from different company and JVCA 

9. Informasi yang berhubungan dengan evaluasi penawaran dan rekomendasi penetapan pemenang 

lelang tidak diberitahukan kepada peserta lelang atau orang yang tidak secara resmi berkepentingan 

dengan proses tersebut sampai penetapan pemenang lelang disampaikan kepada semua peserta 

lelang 

All information related to bid evaluation and recommendation for the winner must not 

be informed to bidders or others which not correlated with the process up to the 


Appendices 



proposed winner conveyed to all bidders 

10. Permintaan Panitia lelang untuk klarifikasi dan tanggapannya secara tertulis 

The bidding committee request for clarification and its response shall be in writing 

11. Hasil pembukaan penawaran diumumkan pada website selambat-lambatnya 24 jam setelah 

pembukaan lelang 

The results of the bidding shall be notified in the website within 24 hours after the bid 

opening 

12. Hasil Evaluasi Lelang disampaikan kepada seluruh peserta lelang disertai alasan mengapa 

penawarannya tidak ditetapkan sebagai pemenang kepada peserta lelang yang tidak ditunjuk 

sebagai pemenang 

The Procurement Committee shall write to all bidders with reasons to unsuccessful 

bidders why their bid was not selected 

13. Panitia lelang menyerahkan kepada AusAID sebagai bagian dari proses No Objection Letter (NOL) 

berupa Seluruh penawaran dan alasan-alasan suatu penawaran dinyatakan tidak responsif 

Procurement committee submit to AusAID as part of the NOL process include all bids 

received and reasons for any bid being declared as non-responsive 

14. PAS membantu Panitia lelang dengan pengendalian mutu sebelum dokumen pengadaan 

disampaikan kepada AusAID untuk NOL 

PAS will assist procurement committee with quality control before tender documents 

are submitted to AusAID for NOL 

IV Pelaksanaan kontrak (bobot 20%)/ Contract Implementation (Scoring 20%) 

1. MDF/FIDIC (Multi Donor Fund/Federation Internationale des Ingenieurs Conseils) Harmonised 

Contract digunakan untuk seluruh pekerjaan fisik, dengan peran Direksi Pekerjaan diisi oleh Team 

Leader Konsultan Regional Supervision Consultant (RSC) 

The MDF/FIDIC Harmonised Contract used for all civil works, with the role of 

Engineer being filled by the Team Leader of the RSC 

2. Pemilik Proyek memberikan rincian seluruh pengaturan berkaitan dengan pelimpahan wewenang 

kepada Direksi Pekerjaan (Letter of Appointment), tidak ada perubahan berikutnya yang dilakukan 

tanpa persetujuan tertulis sebelumnya dari AusAID 

The Employer provided details of all arrangements in relation to the delegation of the 

authority to FIDIC Engineer (Letter of Appointment), and no subsequent changes can 

Apakah perlu break-down untuk 

rincian pengaturan? 

Is it necessary to 

break-down the 


Appendices 



be made to these arrangements without AusAID‟s prior written approval 

3. Direksi pekerjaan melimpahkan wewenang kepada Chief Supervision Engineer (CSE) dan Site 

Supervision Engineer (SSE), termasuk tanggung jawab untuk mengesahkan sertifikat pembayaran 

The Engineer delegated necessary authorities to each Chief Supervision Engineer and 

Site Supervision Engineer, including responsibility for authorizing payment 

certificates 

4. Pekerjaan belum dapat dimulai sampai RSC dimobilisasi dan CSE atau SSE diangkat 

Civil Works will not commence until the RSC is mobilized and Chief Supervision 

Engineer or Site Supervision Engineer appointed 

5. Kasatker/PPK membuat dan memasang papan informasi (notice board) di luar kantor proyek 

sebelum proyek dilaksanakan, papan proyek tersebut sekurangnya menginformasikan: 

The Contract Officer must establish a notice board outside each Project Office before 

works commencement date, at least containing the following information: 

- nama pekerjaan/ name of project, 

- nama pelaksana pekerjaan/ name of contractor, 

- nilai kontrak/ contract value 

- prosentase fisik dan keuangan yang selalu di-update setiap bulan/ percentage of completion 

and percentage of contract paid, upadated monthly 

- mekanisme penanganan pengaduan/ complaints handling mechanism 

- alamat website/ website address 

6. Laporan bulanan progres proyek dapat diperoleh masyarakat dan media di tingkat provinsi dan 

kabupaten berdasarkan permintaan 

The monthly project progress reports are available to civil society and media at the 

provincial and kabupaten upon request 

7. Semua informasi pada website proyek tersebut dapat diperoleh perorangan/ organisasi yang 

berkepentingan berdasarkan permintaan 

All information on the project website will also be made available upon request to 

interested person/organisation 

8. Monthly Progress Report (RSC) diterima PPK, PMU dan PMSC tgl 14 bulan berikutnya, & 

dicatat/registrasi 

Monthly Progress Report (RSC) shall be received by PPK, PMU and PMSC on the 

regulation details? 

Usul butir tambahan : 

The proposed 

additional points: 

1. 


Appendices 



date 14th of next month, and noted/registered. 

9. Monthly Project Report (dari SSE) harus dikirimkan ke team leader RSC paling lambat tgl 7 bulan 

berikutnya 

Monthly Project Report (from SSE) should be sent to the Team Leader RSC at the 

latest on date 7th of next month 

V Penanganan Pengaduan (bobot 5%)/ Complaint Handling Procedures (Scoring 5%) 

Pengaduan dan sanggahan dapat disampaikan melalui pos ke PO BOX 5100 JKTM, telepon, faksimili, 

e-mail dan website 

Complaints or objections may be submitted by post to PO BOX 5100 JKTM, 

telephone, facsimile, e-mail and website 

Jika terdapat sanggahan dalam pelelangan/ If there is objection during procurement 

(Jika tidak ada sanggahan, langsung ke nomor 3. Nomor 1 dan nomor 2 diisi dengan N/A) 

(If there is no objection, go directly to Item 3. Item 1 and item 2 marked with N/A) 

1. Sanggahan diteruskan oleh PMU kepada Satker/PPK atau atasan satker/PPK 

Objection is forwarded by PMU to the Contract Officer or the upper level official 

2. Sanggahan ditindaklanjuti oleh Satker/PPK atau atasan satker/PPK 

The Contract Officer or the upper level Official will take a follow up action and 

respond the objection 

Jika terdapat pengaduan dalam pelelangan/ If there is complaint during procurement 

(Jika tidak ada pengaduan, langsung ke nomor 8. Nomor 3 s/d nomor 7 diisi dengan N/A) 

(If there is no complaint, go directly to item 8. Item 3 to item 7 marked with N/A) 

3. Pengaduan diteruskan oleh Satker/PPK atau atasan satker/PPK kepada PMU/Itjen Kementerian PU 

atau pihak yang berwenang 

Complaint is forwarded by Contract Officer or the upper level Official to 

PMU/Inspectorate General of MPW or authorized party 

4. Pengaduan diteruskan oleh PMU kepada Inspektorat Jenderal Kementerian PU atau pihak yang 

berwenang 

Complaint is forwarded by PMU to Inspectorate General of MPW or authorized pary 

5. Pengaduan ditindaklanjuti oleh Inspektorat Jenderal Kementerian PU atau pihak yang berwenang 

Perlu pembicaraan dengan PMU 

: 

Need discussion with 

PMU regarding: 

- besarnya bobot/ value of 

scoring 

- bila tidak ada pengaduan, 

apakah karena proyek sudah 

baik atau karena masyarakat 

tdk peduli/tdk tahu/ if there 

is no complaint, whether 

because the project is good 

or because public is 

ignorant/don‟t know 

- lebih ditekankan pada 

pengujian sistem 

penanganan pengaduan/ 

more focused on testing the 

complaint handling system 


Appendices 



Complaint will be followed up by Inspectorate General of MPW or authorized party 

6. Pengaduan tanpa identitas ditindaklanjuti oleh PMU 

Anonymous complaint will be followed up by PMU 

7. Seluruh pengaduan akan ditanggapi selambat-lambatnya 7 hari setelah diterima 

Complaint will be responded within 7 days of receipt 

8. Kementerian PU merahasiakan identitas pengadu dalam bentuk pernyataan yang dimuat dalam 

website atau media lainnya 

MPW keep the complainant identity as secret in form of statement on website or other 

media 

9. Kementerian PU menerapkan prosedur untuk menjamin kerahasiaan identitas pengadu 

MPW implement the procedure to guarantee the complainant identity 

10. Status seluruh pengaduan akan dicatat dan dikonsolidasikan dalam laporan bulanan oleh Itjen 

Kementerian PU, dan disampaikan kepada PMU dan AusAID 

Status of all complaints will be noted and consolidated as monthly report by 

Inspectorate General of MPW and forwarded to PMU and AusAID 

11. Pengaduan yang berindikasi fraud, kolusi, dan korupsi diserahkan oleh Itjen PU kepada lembaga 

Pemerintah Indonesia yang terkait atau auditor independen yang ditunjuk untuk dilakukan 

investigasi dan penuntutan 

Complaint with indication of fraud, collusion and corruption will be forwarded by 

Inspectorate General of MPW to related government organization or appointed 

independent auditor for investigation and prosecution 

12. Kementerian PU menyusun pedoman tentang sanksi-sanksi yang diterapkan kepada 

konsultan/kontraktor/pegawai pemerintah yang terlibat dalam tindak korupsi 

MPW prepare guidelines on the sanctions imposed to consultant/contractor/ 

government employee involved in corruption 

VI Keuangan (bobot 10%)/ Financial (Scoring 10%) 

1. Setiap PIU/Satker mempunyai seorang spesialis pelelangan yang memenuhi syarat, yaitu 

mempunyai sertifikat pengadaan barang dan jasa atau telah mengikuti pelatihan yang dilaksanakan 

oleh PAS tentang prosedur lelang untuk EINRIP 

Each Satker/ PIU has a qualified procurement specialist with certificate of expertise 

in procurement of works/good or he has involved in the EINRIP-procurement training 


Appendices 



session provided by PAS 

2. Setiap PIU/Satker mempunyai pengelola keuangan minimal yang telah mengikuti diklat 

bendaharawan yang tugasnya akan termasuk menjamin pembukuan yang memadai untuk 

kepentingan audit 

Each PIU/Satker has a financial management specialist at least has attended a short 

course in treasurer whose duties will include ensuring adequate record keeping for 

audit purposes 

3. PIU/Satker mempunyai manual dari PMU atas rencana tindak manajemen keuangan, pengendalian 

intern dan prosedur penguatan validasi pembayaran, serta pengembangan pelatihan dalam 

manajemen keuangan EINRIP 

PIU/Satker has a manual from PMU about financial management action plan, 

internal controls and strengthen payment validation procedure as well as 

development training in EINRIP financial management 

4. Satker/PPK memastikan bahwa kontraktor membuka rekening terpisah yang hanya boleh dipakai 

untuk menampung dana-dana EINRIP dan dapat diaudit oleh auditor independen 

The Contract Officer make sure that contractors open a separate account that is only 

permitted to hold EINRIP funds and auditable by independent auditor 

5. Staf Satker telah mendapatkan pelatihan dari Ditjen Bina Marga tentang pelelangan dan manajemen 

keuangan termasuk persyaratan-persyaratan dari ACAP. 

Staff of Satker has received training from DGH on procurement and financial 

management including the requirements of ACAP 

VII Audit (bobot 10%)/ Audit (Scoring 10%) 

1. Satker/PPK telah diaudit keuangan oleh Auditor yang ditunjuk 

Satker/ PPK has financially audited by the appointed auditor 

2. Satker/PPK telah diaudit teknis oleh Inspektorat Jenderal Kementerian Pekerjaan Umum. 

Satker/ PPK has technically audited by Inspectorate General of MPW 

3. Satker/PPK telah menindaklanjuti temuan hasil audit keuangan dan audit teknis yang dilakukan 

oleh auditor independen selain yang ditunjuk oleh AusAID. 

Satker/PPK has followed-up the findings on financial and technical audit conducted 

by independent auditor other than those appointed by AusAID 

4. Technical & Financial Audit Consultant (TFAC) telah mengadakan pemeriksaan fisik pekerjaan 

Usul butir tambahan : 

The proposed 

additional points: 


Appendices 



jalan termasuk pekerjaan drainase dan pekerjaan jembatan 

TFAC has conducted physical examination of road works including drainage and 

bridge 

5. TFAC telah mengadakan review terhadap metoda dan proses kerja kontraktor 

TFAC has reviewed the contractor‟s method and working process 

6. TFAC telah mengadakan audit terhadap sertifikasi dan pembayaran terhadap kontraktor sesuai 

dengan kontrak 

TFAC has conducted an audit to certification and payment of contractor according to 

contract 

7. TFAC telah mengadakan audit terhadap kualitas material yang digunakan, peralatan, dan fasilitas 

lainnya termasuk fasilitas bagi staf kontraktor. 

TFAC has conducted an audit to the quality of materials used, equipment and other 

facilities including facilities for contractor‟s staff 

8. Kementerian PU menjatuhkan sanksi bagi kontraktor berdasarkan hasil audit teknis 

MPW will impose sanction to contractor based on the findings of technical audit 

Penilaian/ Scoring: 

X adalah jumlah kumulatif dari seluruh indikator (dalam prosentase) = X1 + X2 + X3 + X4 + X5 + X6 + X7 

X is cummulative of all indicators (in percentage) = X1 + X2 + X3 + X4 + X5 + X6 + X7 

Xn diperoleh dengan cara : jumlah jawaban “ya” dibagi jumlah jawaban “ya” dan “tidak”, dikalikan bobot, dikalikan 100% 

Xn is obtained by: total answer of “yes” divided with total answer of “yes” and “no”, multiplied with scoring and 100% 

jumlah “ya” (total of “yes”) 

= ──────────────────────────── x % bobot (% scoring) x 100% 

juml. “ya” + juml “tidak” (tot “yes” + tot “no”) 


Appendices 


Appendix 7 

Minutes of the 

6 th EINRIP Joint Management Meeting 


Appendices 


DRAFT 

MINUTES of the 

6th EINRIP JOINT MANAGEMENT MEETING 

24 August 2010 - DGH Office 

List of Attendance: 

DGH: Bapak Harris H. Batubara, Bapak Muh. Iqbal Pane, Bapak Herman Darmansyah, Bapak 

Suharjanto, Bapak Budi Harimawan, Ibu Rien Marlia, Ibu Lyana Aryani T. Sihombing, Ibu 

Grace A., Bapak Arie Febriyanto, Bapak Hedy Rahadian, Ibu Rani Woro, Bapak Thomas 

Setiabudi Aden, Bapak KGS Syaiyful Anwar 

MoF: Bapak Maurin Sitorus 

Bappenas: Ibu Lusiana Murti, Bapak Aryawan Soetiarso 

AusAID: Sam Zappia, Ben Power, Patrick Dennis, Hugh Brown, Leslie Robertson, Bapak Sigit 

Pratignyo, Ms Widya Narsi 

PMSC: Abid Kazmi, Bapak Yuzerwan Sukiyo, Bapak Efrizal Effendi 

Agenda Item 1. Introduction by Chair 

The meeting was chaired by Pak Maurin Sitorus, Ministry of Finance, who opened the meeting 

at 3.30 pm. 

In his opening remarks, Pak Maurin stated that he was pleased to chair this Management 

Meeting to discuss the progress of a very important project for the Government of Indonesia. He 

stated that EINRIP had made progress but also faced ongoing challenges, including land 

acquisition for the remaining projects. This meeting provided the opportunity to examine those 

challenges and review the progress made. 

Agenda Item 2. Minutes of the Previous Meeting 

The meeting accepted the Minutes of Joint Management Meeting No.5 (also Senior Management 

Meeting No.2) as final. No comments were received on the draft Minutes circulated by AusAID. 

Agenda Item 3. EINRIP Progress Report (Tabled by DGH) 

Pak Harris (Director of Planning, DGH) presented the summary report of EINRIP activities for 

the previous 6 month period. Project progress included 12 packages in construction stage, 2 more 

contracts have been awarded, 2 packages in final stage of procurement, 2 packages now 

advertised for bids, and bidding for the last 2 packages would likely commence in September 

2010. Progress of expenditure was well under the Procurement Plan target with only 26.7% 

expended. 


Appendices 


Agenda Item 4. AusAID Response and Discussion 

Sam Zappia (Chief of Operations, AusAID Jakarta) welcomed all to the meeting. He thanked 

Pak Maurin for his ongoing interest and commitment to EINRIP to continue chairing the JMM 

meetings. Sam also acknowledged the contribution of Pak Taufik in so ably leading the EINRIP 

Program over many years as the Director Planning. He welcomed Pak Harris in his new role and 

said that AusAID looks forward to working closely with him in future. 

Sam thanked Pak Harris for the DGH progress report and invited Ben Power to present 

AusAID‟s response. 

Comments on DGH Progress Report by Ben Power 

Ben Power said AusAID appreciated that some of the land acquisition issues that constrained 

procurement of projects last year had been overcome. However, AusAID is concerned about the 

level of cumulative disbursements so far. With 12 projects now under construction, the average 

disbursement is under $ 2 million per month, and a number of these projects were experiencing 

significant delays. AusAID is concerned that not all contracts will be completed by the new loan 

closing date of March 2013. There is clearly a need to expedite contracts so that progress is 

accelerated as negotiation of a further extension of the loan with the Government of Australia 

would prove very problematic. 

Pak Harris commented that DGH will make every effort to expedite progress. 

Agenda Item 5. Management Issues Raised by AusAID 

Ben Power briefly re-stated the need for EINRIP to address key management issues such as 

disbursement rates, unsatisfactory physical progress and adherence to standard contract variation 

procedures. 

Contract Variations 

Leslie Robertson (EMU) stated that there were a number of contract variations in progress for 

which there had been no formal liaison with AusAID. He acknowledged that variations could 

take a long time to formalise and were quite significant in terms of cost and time for completion. 

He quoted the redesign of piles of Tukad Udang2 bridge in EBL-01, Bali, where the design issue 

has been known to all parties since September 2009, but to date AusAID has not received any 

technical justification for the proposed design change. Les reminded that any design changes 

require a No Objection Letter (NOL) from AusAID. There are other packages where variations 

have been reported but not consulted with AusAID, and for this reason AusAID is concerned 

that the agreed procedures for contract variations are not working properly. There is a need for 

increased understanding of the role of various parties under the FIDIC type contract. 

Leslie stated that to address this matter, it is AusAID‟s suggestion that resources should be made 

available to the RSC supervision team for assessment and evaluation of variations. 

Pak Harris stated that two contracts variations are in process; these are EBL-01 in Bali and EKB- 

01 in West Kalimantan. 


Appendices 


Bapak Thomas Aden (SubDit Metropolitan Implementation) explained that for EBL-01 some of 

the delays were avoidable and that DGH will make all efforts to ensure that they are not 

repeated. He also stated that all DGH staff are made aware of the need for an AusAID NOL 

before a contract amendment is formalised. 

For EKB-01, the Directorate of Planning was still waiting for the decision from Directorate of 

Region II to present the technical justification. Ibu Rien explained that there was some 

disagreement on alignment that may require a variation. 

Hugh Brown (EMU) stated that PMU and PMSC should review the process of variations and 

ensure that the information flow between various parties on the process is clear. He also stated 

that AusAID is providing training workshops on Contract Administration for FIDIC style 

contracts in September or early October. Pak Harris welcomed the training opportunity. He 

confirmed DGH planned to remind staff of implementation requirements through internal 

meetings, and said that communications between DGH implementation sections and PMU about 

contract variations should be more efficient. 

Ben Power stated that after these discussions and concerns of AusAID, he expected that there 

will be no more delays in preparation of variations and that all necessary documentation will be 

sent to AusAID in the next one or two months. 

Unsatisfactory Progress: ESR-01 in South East Sulawesi 

Leslie conveyed AusAID‟s concern about unsatisfactory progress of project ESR-01 (Tinanggea- 

Kasipute). After one year of a 2-year contract progress is only 13%, more than 30% behind 

schedule. There have been three (3) show cause meetings, and the Contractor has failed all 3 

„test cases‟. The TFAC audit also shows that their work quality is poor. It is AusAID‟s opinion 

that the Contract should be terminated as there is little expectation of improvement from the 

current contractor. Leslie acknowledged that termination may result in 12 months delay, 

however, even with this delay, it is expected that a good contractor could finish the contract 

within the extended loan period. 

Pak Suharjanto (Sub Directorate region III) stated that it is DGH opinion that the Contractor can 

still make up the lost progress by additional effort and that DGH will monitor the progress 

closely for another 2 months before taking decision for termination. 

Pak Harris stressed that there must be a firm time frame agreed for the evaluation. 

Agenda Item 6. Proposed Changes to Loan Sharing Arrangement (by AusAID) 

Hugh Brown explained that using the current sharing formula of 89% GoA:11% GoI for civil 

works may result in expenditure from loan of only about A$280 million, and contribution from 

GoI of A$40 million, which is more than their current commitment of A$30 million. This 

situation is primarily due to cost escalation as a result of late starts on some of the contracts and 

slow progress of works. 

Hugh stated that a number of alternative loan sharing scenarios have been examined. These 

scenarios included changing the loan sharing portion to 100% from loan in 2011 and 2012; or 

variable sharing over next 3 years. He stressed that the intention was to ensure maximum use of 

loan funds before the loan expiry date. 


Appendices 


Ben Power invited DGH to comment on the proposed arrangements. Pak Maurin stated the 

intention of GoI to withdraw the loan in full. MoF would discuss with DGH on how to best to 

respond to these options. Sam Zappia stated that GoA also intended that the full loan amount be 

utilised for the EINRIP program. 

Agenda Item 7. Proposed Amendment to Loan Agreement (by AusAID) 

Ben Power stated that it has been previously agreed in principle by AusAID and GoI that the 

EINRIP Loan Closing date be extended from 1 June 2011 to 31 March 2013, but as yet no 

formal amendment to the Loan Agreement has been completed. He stated that the expected steps 

were a letter requesting amendment from MOF to AusAID, then a letter in reply from AusAID 

detailing the amendments to be made and counter-signed by MOF. 

Pak Maurin explained the general process within GoI and stated that the proposed letter for 

amendment will be prepared and sent by DGH to MoF and Bappenas. On recommendation of 

Bappenas, MoF will send a formal request to AusAID for changes in the Loan Agreement. He 

stated that the process will be initiated soon. 

Agenda Item 8. Technical and Financial Audit Consultants: Audit Results 

Leslie described the TFAC Audit program and stated that after the initial Bali audit, four more 

audits have been completed for ENB-01 (Sumbawa), EKB-01 (West Kalimantan), ESR-01 

(South East Sulawesi) and ESS-02 (South Sulawesi). The Audit reports have been sent to DGH 

for onward distribution to DGH staff and RSC. 

The audits are intended to assess the basic quality of civil works and the processes being applied. 

Initial indications are that there are serious concerns emerging regarding both the processes 

being adopted and the quality of the works. The standard of supervision by the RSC as the 

Engineer has been unsatisfactory in some cases, and performance needs to be improved by all 

parties. He stated that there are no concerns arising from the financial findings. These audits 

provide a good opportunity to improve the noted deficiencies and should be seen in a positive 

and constructive context of maintaining project quality. 

Sam Zappia enquired whether it is possible for AusAID to share examples of good construction 

practices to DGH to address the audit findings. Hugh Brown stated that introduction of FIDIC 

type contracts is an example for good administration. He stated that changes have to come from 

within DGH as some of the issues identified are common to other projects across Indonesia. The 

change is gradual and may face challenges, both internally and externally. 

AusAID would be willing to discuss future directions with DGH, but some of the steps that 

could be taken immediately are rejection of unsatisfactory work, suspension of work until 

standards are improved, strengthening of supervision teams and greater understanding of 

contractual requirements of the Engineer and Employer. AusAID will be facilitating several 

workshops on the audit findings to focus attention on the key issues, and is prepared to consider 

providing further support to DGH to improve the quality aspect. 

Pak Harris acknowledged the usefulness of the TFAC audits and the additional support of 

AusAID, especially for the holding of practical workshops. 


Appendices 


Agenda Item 9. Variations in Civil Works through design optimisation (balanced budget) - 

Tabled by DGH 

Ibu Rien presented the background of the balanced budget approach, basing the case on limited 

funding available to address all variations in Civil Works contracts. She stated that the maximum 

amount available under the loan and GOI contribution is about A$299 million, which will be 

insufficient if there are significant variations in the contracts. The approach of DGH is therefore 

to consider where the contract variations can be addressed by adjustments in design and scope of 

projects, without changing the cost of contract. 

In response, Hugh Brown stated that the initial allocation for works were tentative, subject to 

adjustment as projects progressed. During the loan discussions it was generally agreed that 

additional allocations for completing the works was not considered to be an impediment by GOI. 

As the program for EINRIP has been developed based on DGH‟s accepted standards, AusAID 

cannot accept compromise or reduction in design standard or in scope. As a general principle, all 

changes that do not compromise the original agreed standard of roads could be examined on 

individual cases-by-case basis, but a general policy of reducing the scope or standard to suit 

available funding breaches the Loan Agreement and is not acceptable to GoA. 

Agenda Item 10. Other Business 

No matter was raised by any participant. 

Agenda Item 11. Date of Next Meeting 

The meeting agreed that the next 6 Monthly Management Meeting (Senior Level) should be 

conducted in middle to late January 2011, with final date to be agreed later. 

The meeting closed at 5.10 pm. 


Appendices 


Appendix 8 

Management Action Plan Approved in 

January 2010 


Republic of Indonesia 


Directorate General of Highways 

Eastern Indonesia National Road Improvement Project 

(EINRIP) 

AIPRD Loan L002 

EINRIP 

MANAGEMENT ACTION PLAN 

(MAP) 

January 2010 

PMU - EINRIP 

Directorate General of Highways 

PMU – EINRIP, Directorate of Planning, DGH

EINRIP, MANAGEMENT ACTION PLAN (MAP) 

1. Introduction 

The preparation and implementation of EINRIP has been active since 2006 (the loan 

effectiveness date was 4-Mar-08). The detailed designs for all approved road improvement 

packages and most of environmental studies were completed before demobilisation of Project 

Preparation Consultants (PPC) in April 2009. However, the land acquisition process was still ongoing 

and not complete for all packages. PPC also acted as interim procurement consultants for 

initial procurement process. 

The three implementation support consultants PMSC (for PMU support), PAS (for procurement) 

and RSC (construction supervision) were engaged in late 2008 and the consultants are now fully 

operational. 

Under EINRIP, a total of 24 packages in nine eastern provinces were proposed for construction 

in 2008-2012. Preparation of the packages commenced in 2007 after initial feasibility studies and 

these packages have progressed to varying degree of preparation and implementation. 

A brief summary of current status of all EINRIP packages (as at 15-Dec-09) is as follows: 

Preparation (design) 

Detailed design for all packages is complete. 

Environmental and Social Studies 

Environmental studies for 19 packages were either not required or have been completed. 

AMDAL process for 3 packages in South Sulawesi, and 2 in South Kalimantan is ongoing. 

There was no land acquisition for 2 packages. Land acquisition process for 7 packages has 

been completed. 

Of the remaining 15 packages, land acquisition is in progress, but there are insufficient 

funds for 4 packages in South Kalimantan. 


2 packages are under bidding 

6 packages are being prepared for bidding to commence in early 2010 

Implementation (Construction) of Civil Works 

7 additional contracts have been signed in December 2009, and NOL (disbursement) 

issued for all. Construction is expected to commence in February 2010. 

5 Contracts commenced in 2009 and construction is on-going. 

2. Rationale of MAP 

The comparison of planned implementation schedule at start of procurement process in second 

half of 2008 and the actual achievement of target schedule has been behind plan, with only five 

packages awarded up to November 2009. Land acquisition issues on some packages has 

prevented completion of procurement and award of contract. Primary causes are attributed to: 

Delay in early completion of detailed design of AWP-2 and AWP-3 packages 

Delays in completion of environmental studies (5 still on-going) 


Increased land acquisition costs compared with initial estimates 

Shortage or non-confirmation of available funds with Local Government 

Delays in procurement process especially bid evaluation 

The packages awarded in late 2009 and those targeted to commence in first half of 2010 will be 

incomplete by the Loan Closing Date (LCD) originally agreed of 1-June-2011. There is therefore 

a need to extend the LCD to cover expenditures of construction beyond the original LCD. 

A number of formal and informal discussions have been held between DGH and AusAID on the 

possible extension of LCD. AusAID have generally agreed to the extension of LCD on the 

assurance that DGH employ additional management measures to monitor any further delays and 

apply proactive management interventions to address a particular issue and ensure achievement 

of target dates for key stages in implementation. 

DGH has assured AusAID that increased monitoring will be undertaken for all packages and this 

document, Management Action Plan (MAP) presents the intent and modalities of this assurance. 

The purpose of MAP is to demonstrate the additional management control that DGH will 

exercise in ensuring of completion of all phases without further delays. 

3. Management Action Plan (MAP) 

Due to varying stages of progress for different packages, there is need for developing a realistic 

action plan for closer monitoring of various activities. For some sub-packages, land acquisition 

and procurement can proceed in parallel, however, the contracts cannot be awarded until all land 

acquisition has been completed and verified. 

In appreciating the distinct and overlapping concurrently running activities, three key broad 

streams of activities have been identified: 

Land acquisition 

Procurement 

Implementation (Construction) 

Due to this overlap in main phases, the MAP identifies key activities and component tasks in 

each of three phases and focuses on increased and enhanced monitoring. 

The MAP encompasses following framework: 

Identify actions, component tasks and agencies/units responsible in each phase; 

Develop activity/task monitoring and reporting schedules; 

Formulating time-based performance benchmarks for key activities; 

Developing intervention modalities in case of delays and difficulties; and 

Monitoring and reporting requirements 

This monitoring and intervention plan is underpinned by the key performance benchmarks for 

each component of project implementation i.e. land acquisition, procurement and 

implementation. 

4. Activity Monitoring Schedules 

The MAP comprises of first identifying and listing key activities and the tasks that constitute 

each key phase. It then lists the main agencies responsible for each activity and the line position 

responsible for completion or approval of each task within the activity. 


A target date for completion of each task is identified and the schedule is monitored for task 

completion within the planned time. 

The Activity Schedule for Land acquisition, Procurement and Implementation are presented in 

Appendix (## not listed in 2010 Annual Report), respectively. 

5. Time-based performance benchmarks 

A key feature of MAP will be establishing time-based performance benchmarks which will a) 

mark the key stages within each mainstream activity; and b) provide a monitoring tool for senior 

management about the progress of each activity. 

The benchmarks predominantly relate to either production of key document/letter that marks the 

completion of certain phase; or is linked with achieving a target progress within planned time. 

The key considerations in developing these benchmarks are that these are tangible (through issue 

of NOL, for example) or are linked to achieving a planned activity (increments of 10% physical 

progress on civil works is another example). 

The proposed performance benchmarks are given below: 

Land Acquisition 

L-1 Land acquisition budget confirmed by end March 2010 for all packages 

L-2 Assurance that land acquisition can be fully completed before Contract Award, as a 

condition for issuance of NOL Procurement 

L-3 Examination of compensation payment evidence and submission and acceptance of 

LARAP monitoring report before NOL Disbursement can be issued 

(The target time frame for NOL for Procurement and NOL for Disbursement are presented 

on the most current Procurement Plan and completed for each package) 


P-1 Target date for NOL to start Procurement (based on most current Procurement Plan) 

P-2 Target date for Bid opening (49 days from NOL-procurement) 

P-3 Target date for submission of Bid Evaluation Report (BER) to AusAID and issue of 

NOL Award (42 days from bid opening date) - this could be delayed depending on the 

clarity of bids received and any clarifications sought from bidders. 

P-4 Target date for Contract Signature (14 days from issue of NOL Award) 

P-5 Target date for NOL Disbursement (21 days from NOL Award) 

Civil Works Implementation (Construction) 

C-1 Target date for preconstruction formalities and issue of Commencement Date 

(maximum 60 days from Contract signing) 

C-2 Monitoring of physical progress achieved for each contract (at 10% increments on 

actual achieved progress compared with planned progress) 

6. Intervention 

The regular monitoring of tasks in the Activity Schedule will highlight those tasks that are 

delayed or there are problems with completion of the task. The time-based performance 

benchmarks will be the basis for triggering an intervention by management or by allocating 

additional resources by the agency/unit responsible for completion of that task. 

The Activity Schedules will be updated for each package on a monthly basis and the completion 

of tasks identified on the schedule, which will also be used as summary of activity schedules. 

Any task which has been delayed will be complemented by filling out a form titled Intervention 

Monitoring Report. This report will be completed for one task at a time – only for those tasks 

that fall behind the target completion date. This report will also identify the causes for delays and 


modalities for intervention i.e. what intervention is needed, who is responsible for managing 

intervention and setting up a revised date for completion of that task. 

This intervention could also be repetitive in nature whether second or additional monitoring is 

required and this will also be recorded on the same sheet where 1st intervention was recorded. 

The template of Intervention Monitoring Report is attached at Appendix (## not listed in 2010 

Annual Report). 

7. Monitoring and reporting 

It is proposed to prepare the Summary MAP Monitoring Report every month that will report on 

the completion and progress of activities for each package in the preceding month. 

The responsibility of MAP monitoring report lies with PMU-EINRIP and supported by PMSC. 

Key input from PAS and RSC consultants will also be required. 

8. Management Coordination Meetings 

The Summary MAP Monitoring Report prepared each month will provide an indication of those 

key performance benchmarks that are not met. Such slippages need to be addressed promptly to 

avoid further delays. Coordination meeting will be organised by PMU involving key staff from 

Directorate of Planning and Director Eastern region. 

These coordination meeting will focus on those projects where target benchmarks have not been 

achieved. Problem areas will be identified and proactive remedy to remove the particular issue 

will be agreed by the two divisions. Monitoring of additional measures adopted to overcome the 

delays in benchmarks will be conducted and reported in monthly reports. 

These meetings will be minuted and distributed to all involved, including a copy to AusAID. 

9. Summary Status of ESS & Land Acquisition Studies as at Jan 2010 

The summary of ESS activities and land acquisition status is shown at Appendix (## not listed in 

2010 Annual Report). The summary also shows the estimated land acquisition costs for each 

package. 

DGH will ensure that budget availability for land acquisition is confirmed by March 2010 and 

that all necessary steps will be taken to provide any shortfall in land acquisition budgets from 

APBN. 

10. Procurement Plan updated for Jan 2010 

The updated Procurement Plan Version 5, as approved in January 2010 attached in Appendix (## 

not listed in 2010 Annual Report). The Plan shows the key target dates for procurement and award 

of contract. The implementation schedule is shown as a bar chart in Appendix (## not listed in 

2010 Annual Report). 

11. Appendices 

(Note: Appendices are not attached in this Annual Report 2010)

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