western indonesia national road improvement...

Technical Assistance for Support to the Project Management Unit i Core Team Consultants of WINRIP IBRD Loan No. 8043-ID.

MINISTRY OF PUBLIC WORKS DIRECTORATE GENERAL OF HIGHWAYS DIRECTORATE OF TECHNICAL AFFAIRS

WESTERN INDONESIA NATIONAL ROAD IMPROVEMENT PROJECT (WINRIP)

TERMS OF REFERENCE

for

CORE TEAM CONSULTANTS (CTC)

March 2012

Technical Assistance for Support to the Project Management Unit ii Core Team Consultants of WINRIP IBRD Loan No. 8043-ID.

Acronyms and Abbreviations

ACAP Anti-Corruption Action Plan ADB Asian Development Bank AIP, AIPRD Australia-Indonesia Partnership for Reconstruction and Development AMDAL Analisa Mengenai Dampak Lingkungan - Environmental Impact Assessment

Process ANDAL Analisa Dampak Lingkungan - Environmental Impact Report resulting from AMDAL

study APBN Anggaran Pendapatan dan Belanja Nasional- National Revenue and Expenditure

Budget AusAid Australian Agency for International Development which administers AIP, AIPRD AWP/WP Annual Works Programme; AWP1/WP1 = first batch of works, which may take

more than 1 year to build, Balai Balai Pelaksanaan Jalan Nasional - DGH Regional Implementation Agencies Bappenas Badan Perencanaan Pembangunan Nasional - National Development Planning

Board BI Bank Indonesia BinaMarga Directorate General of Highways within the Ministry of Public Works BPK Badan Pemeriksa Keuangan - Supreme Audit Agency BPKP Badan Pemeriksa Keuangan Pembangunan - Development Finance Audit Agency BPKSDM Construction Industry and Human Resources Board, MPW CTC Core Team Consultant - consultant supporting PMU DGH Directorate General of Highways within the Ministry of Public Works DIPA Daftar Isian Pelaksanaan Anggaran - detailed Budget Document prepared annually DitBintek/DTA Directorate of Technical Affairs within DGH DitBipram/DOP Directorate of Planning within DGH Dit.Binlak W/DIA DSC

Directorate of Implementation Affairs Region , DIA-I = Directorate Implementation Affairs Region I WINRIP Design and Supervision Consultant

EIA Environmental Impact Assessment (AMDAL) EINRIP Eastern Indonesia National Roads Improvement Project EIRR Economic Internal Rate of Return (%) EIRTP1 Eastern Indonesia Region Transport Project 1 - IBRD Loan 4643-IND, signed 22

January 2002 EIRTP2 Eastern Indonesia Region Transport Project 2 - IBRD Loan 4744-IND, signed 23 July

2004 EMiP Environmental Mitigation Plan EMoP Environmental Monitoring Plan EMP Environmental Management Plan under EIRTP2 ESAMP Environmental and Social Assessment Management Plan under SRIP ESC Environmental Special Clauses (previously SOP - Standard Operating Procedures) ESS Environmental and Social Safeguards FHO Final Handover of works under a contract, indicated by issue of Performance

Certificate FMR Financial Monitoring Report - quarterly expenditure report and cash forecast for

six months GOI Government of Indonesia IBMS Integrated Bridge Management System IBRD, WB International Bank for Reconstruction and Development - World Bank

Technical Assistance for Support to the Project Management Unit iii Core Team Consultants of WINRIP IBRD Loan No. 8043-ID.

ICB, NCB International Competitive Bidding, National Competitive Bidding IIRMS Indonesian Integrated Road Management System IRMS Inter-urban Road Management System JVCA Joint Venture, Consortium or Association (also includes JO, Joint Operations, Sub-

contract) KepMen 369 Public Works decree No. 369/2005 (Jaringan Jalan Nasional) - list of National

Roads KPPN Kantor Pelayanan Perbendaharaan Negara - MOF Treasury Office in a Province or

District LAK Laporan Arus Kas - Cash Flow Report LARAP Land Acquisition and Resettlement Action Plan LARF Land Acquisition and Resettlement Framework LRA LaporanRealisasiAnggaran - Budget Realisation Report MC Monthly Certificate - known as Interim Payment Certificate in the SBD MDB Multilateral Development Banks MOF Ministry of Finance MPW Ministry of Public Works N8K, Nat8K The 8,000 km of New National Road added under KepMen PU 369/2005 NOL No Objection Letter from World Bank NPV Net Present Value P2JJ PAD

Perencanaan dan Pengawasan Jalan dan Jembatan - Road and Bridge Design and Supervision Unit Project Appraisal Document

PHO Provisional Handover of works under a contract, also called Takeover of Works PIP PIU

Project Implementation Plan Project Implementing Unit i.e. Satuan Kerja (Satker)

PMM Project Management Manual CTC (WINRIP) Perpres

WINRIPCore Team Consultants Paternal Presiden - Presidential Decree

PMU POKJA

Project Management Unit (to be qualified by Project name, e.g. PMU-WINRIP) Kelompok Kerja Pengadaan Barang/Jasa – Working Group for Selection/Procurement of Works/Goods/Technical Assistance, was Procurement Committee

PPC (WINRIP) WINRIP Project Preparation Consultants PPK PPT (CTC)

Contract Officer in Satker (Pejabat Pembuat Komitmen) - the 'Employer' (previously Project Manager) Project Procurement Team within the CTC

PPU (WINRIP) Project Preparation Unit (for WINRIP) PUSJATAN Road & Bridge Research and Development Centre, MPW QCBS Quality and Cost Based Selection procedure for consultant services RDSC Regional Design and Supervision Consultant under EIRTP2 RFP Request for Proposals ROW Right of Way (Ruang Milik Jalan) DSC (WINRIP) WINRIPDesign and Supervision Consultant SatKer Satuan Kerja - Work Unit that is responsible for a budget SBD Standard Bidding Documents SEC; SpEC Standard Environmental Clauses; Special Environmental Clauses SLARAP Simplified LARAP SOE Statement of Expenditures (in WINRIP, replaced by Forms 3-C and 3-D in the FMR) SP2D Surat Perintah Pencairan Dana - Payment Order issued by KPPN SPP, SPM Surat Perintah Membayar - Payment Request issued by Work Unit

Technical Assistance for Support to the Project Management Unit iv Core Team Consultants of WINRIP IBRD Loan No. 8043-ID.

SRIP Strategic Roads Infrastructure Project - IBRD Loan 4834-IND, signed on 13 September 2007

TOR Terms of Reference UKL Upaya Pengelolaan Lingkungan :Site-specific Environmental Mitigation Plan (same

as EMiP) UPL UU

Upaya Pemantauan Lingkungan :Site-specific Environmental Monitoring Plan (same as EMoP) Government Regulation

WA Withdrawal Application

Technical Assistance for Support to the Project Management Unit v Core Team Consultants of WINRIP IBRD Loan No. 8043-ID.

Table of Contents

ACRONYMS AND ABBREVIATIONS ..................................................................................... II

1. INTRODUCTION : THE REQUIRED SERVICES .............................................................. 1

2. PROJECT DESCRIPTION ........................................................................................... 2

2.1 Project Overview ........................................................................................................................................... 2

2.2 Project Content and Timing ........................................................................................................................... 2

2.3 Major Features of WINRIP ............................................................................................................................. 3

2.4 Organizations Responsible for Project Implementation .............................................................................. 3

2.5 The Project Management Unit ...................................................................................................................... 4

2.6 Quality Assurance Performance Review of Supervision Consultants .......................................................... 6

2.7 Procurement Arrangements .......................................................................................................................... 6

2.8 Financial Management and Reporting .......................................................................................................... 7

2.9 Supporting Implementation of the Environmental and Social Safeguards (ESS)......................................... 7

2.10 Training Program to Support Implementation ............................................................................................. 7

3. SCOPE OF WORK FOR CTC ...................................................................................... 7

3.1 The Role and Function of the CTC ................................................................................................................. 7

3.2 Key Task Area 1 : Project Management and Institutional Support ............................................................. 8 3.2.1 Support the PMU in all Aspects of Project Management ........................................................................... 8 3.2.2 Monitor Implementation Schedule and Activities ...................................................................................... 8

3.3 Key Task Area 2 : Financial Management and Monitoring ........................................................................... 9 3.3.1 Preparation of Financial Monitoring Report (FMR) .................................................................................... 9 3.3.2 Preparation of a Financial Management Information System (FMIS) ......................................................... 9

3.4 Key Task Area 3 : Project Progress Reporting ............................................................................................. 10

3.5 Key Task Area 4 : Quality Assurance and Performance Review of the Supervision Consultants .............. 10

3.6 Key Task Area 5 : Support for Implementation of Anti-Corruption Measures, and Monitoring their Effectiveness ............................................................................................................................................................. 11

3.6.1 Public Disclosure ....................................................................................................................................... 12 3.6.2 Promotion of e-Procurement .................................................................................................................... 13 3.6.3 Monitoring of Specific Measures .............................................................................................................. 13

3.7 Key Task Area 6 : Monitor the Procurement Process and the Project Procurement Team (PPT) ............ 14

3.8 Key Task Area 7 : Information Management and Dissemination .............................................................. 15

Technical Assistance for Support to the Project Management Unit vi Core Team Consultants of WINRIP IBRD Loan No. 8043-ID.

3.9 Key Task Area 8 : Support Implementation of Environmental and Social Safeguards (ESS) .................... 15 3.9.1 Support to DGH ......................................................................................................................................... 15 3.9.2 Monitoring Land Acquisition ..................................................................................................................... 16 3.9.3 Monitoring the Implementation of LARAPs .............................................................................................. 16 3.9.4 Monitoring the Performance of the DSC .................................................................................................. 16

3.10 Key Task Area 9 : Support for Project Monitoring and Evaluation ............................................................. 16 3.10.1.1 Overview ............................................................................................................................................... 16 3.10.1.2 Surveys and Reporting .......................................................................................................................... 17 3.10.2 Key Performance Indicators .................................................................................................................. 17 3.10.3 Tasks for the CTC .................................................................................................................................. 17

3.11 Key Task Area 10 : Training to Support Project Implementation ............................................................... 17

3.12 Key Task Area 11 : Reporting ....................................................................................................................... 18 3.12.1 Inception Reporting .............................................................................................................................. 18 3.12.2 Management Reporting ........................................................................................................................ 18 3.12.3 Technical Reports.................................................................................................................................. 19

4. STAFFING ............................................................................................................ 20

4.1 Time Schedule .............................................................................................................................................. 20

4.2 Location of Services ..................................................................................................................................... 20

4.3 Suggested Staffing ....................................................................................................................................... 20

4.4 Position Descriptions and Requirements .................................................................................................... 21

4.5 Key Professional Staff .................................................................................................................................. 23

4.6 Sub-Professional and Supporting Staff ....................................................................................................... 23

5. FACILITIES FOR THE EMPLOYER ............................................................................. 24

6. FACILITIES TO BE PROVIDED BY THE EMPLOYER ..................................................... 24

7. OTHER FACILITIES ................................................................................................ 25

7.1 Provisional Items ......................................................................................................................................... 25

7.2 Other Items .................................................................................................................................................. 25

Technical Assistance for Support to the Project Management Unit 1 of WINRIP(Core Team Consultants) under the World Bank Loan 8043-ID.

WESTERN INDONESIA NATIONAL ROADS IMPROVEMENT PROJECT (WINRIP)

TERMS OF REFERENCE for

CORE TEAM CONSULTANTS (CTC)

1. INTRODUCTION: THE REQUIRED SERVICES Implementation of the Western Indonesia National Road Improvement Project (WINRIP), supported by a loan from World Bank to GOI, is scheduled to begin in mid 2012, and will continue until 2017. The Core Team Consultants (CTC) shall provide ongoing support to the Project Management Unit for WINRIP (PMU), established within the Directorate of Planning of the Directorate General of Highways (DGH). Assistance will be provided in a range of areas, including:

i. Project Management Support ii. Financial Management and Monitoring

iii. Progress Monitoring and Reporting iv. Quality Assurance and Performance Review for Design Supervision Consultants v. Implementation of Anti-Corruption Measures, and Monitoring their Effectiveness

vi. Information Management and Dissemination vii. Support the Implementation of Environmental and Social Safeguards (ESS)

viii. Support for Project Monitoring and Evaluation ix. Training to Support Project Implementation x. Reporting

A Design and Supervision Consultant (DSC) will be responsible for preparing design for WP2 and WP3 construction supervision of works. The CTC will liaise closely with the DSC, to provide integrated services that actively support the many initiatives being taken under this program. The Core Team Consultants (CTC) shall provide support to the regional Procurement Committees responsible for procuring the civil works contractors. The CTC shall support the PMU in providing for the implementation of these services. These Terms of Reference identify the scope of work required for the CTC, and the staffing needs for the services.


2. PROJECT DESCRIPTION 2.1 Project Overview

The Government of Indonesia wishes to continue the strengthening of the National Road system in Indonesia, and WINRIP will support a program of National road and bridge improvement works throughout Sumatra in Western Indonesia. The major focus of WINRIP will be those roads which have recently been reclassified as National roads, and which were previously Provincial or non-status roads, of which there are some 3,800 km in Western Indonesia. The main objective of the project is to improve these links to an acceptable standard, suitable to their new status, to help ensure that the National road network provides acceptable standards of service and accessibility, and is capable of supporting local and regional economic development. The total project cost is US$350 million in which the total amount of the World Bank loan to be provided is US$250million. Procurement for civil works will be undertaken by DGH, through Procurement Committees to be appointed in each involved province. The Procurement Committees are expected to have varying capacities, and there is a strong need for advisory support to help ensure uniform levels of effectiveness, and that procurement and award decisions are undertaken in a manner free from collusive or fraudulent practices.

2.2 Project Content and Timing

WINRIP includes support for the following components :

• Betterment treatments including minor widening, mainly on inter-urban roads; and • Bridge replacement or major repair as required for bridges on links for which betterment

treatments have been identified. The WINRIP Loan to GOI will provide for all civil works. It will also provide for consulting services to support project management and administration, and construction supervision of all civil works. For reference purposes, three separate batches of projects will be prepared and implemented. These batches of projects are termed Annual Work Programs (AWPs) or just Work Programs (WP) in line with terminology used in other DGH projects, but they are not in fact “annual” programs as such. It is expected that the first of these (AWP 1) will be ready for implementation by the quarter III of 2012 and last for30 months. The second Annual Work Program (AWP 2) is expected to be ready for implementation by early 2014and be completed by the mid of 2016. A third Annual Work Program (AWP 3) is expected to be implemented during early 2015 to 2017.


The indicative overall Project Implementation Schedule envisaged is shown below.

WINRIP Implementation 2011 2012 2013 2014 2015 2016 2017 AWP1: Procurement Implementation AWP2: Preparation (DSC) Procurement Implementation AWP3: Preparation (DSC) Procurement Implementation

2.3 Major Features of WINRIP

There is a strong interest in both ensuring a successful project outcome, as well as in adding value to road asset management practices used in the sector. To this end, the overall project design emphasises a number of features that are intended to significantly strengthen all aspects of current practice in road improvement projects in Indonesia. The concepts are important to an understanding of the overall responsibilities of the CTC, and include:

• Improved quality of project preparation processes - planning, DED and bid documents • Strengthening procurement processes • Strengthening implementation and supervision • Strengthening project management • Continued reinforcement of GOI’s Anti Corruption Commitment

A major objective of the CTC is to ensure that all works are procured and constructed to a high level of quality, and a high level of attention will be directed towards ensuring that construction supervision services are provided to proper professional standards, free of corrupt and collusive practices.

2.4 Organizations Responsible for Project Implementation

The Directorate General of Highways (DGH) is the lead Implementing Agency for the Project. The Directorate of Planning (DoP) is responsible for planning, programming and budgeting of works on National roads, including land acquisition and resettlement costs. A Project Management Unit (PMU-WINRIP) is established under DoP, and is responsible for coordination of all WINRIP activities. Many agencies will be involved in the management and implementation of WINRIP. The project organisation is shown diagrammatically in Figure 1. The roles and responsibilities of government agencies and implementation support services are described in detail in the Project Implementation Plan (PIP), copies of which may be obtained from the PMU.


2.5 The Project Management Unit

a. Role and Functions of the PMU

Project management will be coordinated through a Project Management Unit (PMU-WINRIP). The PMU-WINRIP will be responsible for day-to-day management and implementation of the Project, and will be chaired by the Director of Planning (Bipram) in DGH. The responsibilities of PMU-WINRIP are outlined below. b. Duties of the PMU

1. Make recommendations to the Steering Committee, carry out policies of the Steering Committee, and coordinate implementation of all aspects of the project in line with the Loan Agreement;

2. Provide Loan management by coordinating and monitoring communications in relation to WINRIP, both internally within DGH and with external agencies;

3. Manage and monitor all project activities following the Project Management Manual (PMM) until project completion, including monitoring the implementation of environmental and social safeguards (ESS) adopted for the project, and overseeing all activities under the Anti-Corruption Action Plan;

4. Keep the Project Management Manual (PMM) up to date, and ensure that its users are aware of its contents;

5. Ensure that unaudited reports are prepared consisting of financial reports, procurement and physical progress reports for goods and services, and compile consolidated unaudited interim financial reports for the whole project for submission to the World Bank.

6. Submit the interim unaudited financial reports to the World Bank no later than 30 days after the end of the respective quarter;

7. Facilitate correspondence with the World Bank through the Directorate of Planning, Directorate General of Highways.

8. Follow up on matters relating to quality of sub-project work, based on reports received; 9. Make recommendations on proposals for technical or administrative matters that are to be

submitted to the World Bank for their no-objection; and 10. Carry out other duties as required, related to the Loan Agreement and its attachments.

c. Project Management Manual

A comprehensive Project Management Manual (PMM) describes the project management requirements and procedures to be followed by all parties, covering such areas as:

• Procurement arrangements, procedures and requirements; • Financial Management procedures, including the establishment of a financial management

information system (FMIS), budgeting, disbursement, accounting and reporting of project finances, and auditing;

• Project reporting systems and procedures; • Provisions of the Anti-Corruption Action Plan; • The Environmental and Social Safeguards (ESS) adopted for the project.

Because of the large number of separate agencies, project managers and Procurement Committees involved, a Training Program will be required to be undertaken prior to and during project implementation.


Figure 2.1: Proposed Project Organisation for WINRIP Implementation

DIRECTORATE OF IMPLEMENTATION

REGION I, DGH

DIRECTORATE OF PLANING,

DGH

DIRECTORATE OF TECHNICAL AFFAIRS, DGH

WESTERN INDONESIA ROAD IMPROVEMENT PROJECT (WINRIP)

PROJECT IMPLEMENTATION ORGANISATION

PMU

DINAS

WORLD BANK GOVERNOOR

CTC DSC (Engineer)

SATKER/PPK Civil Work

SATKER Design Supervision

CONTRACTOR

BALAI Regional Office

Coordination

Command

Contractual

MINISTRY OF FINANCE

BAPPENAS

MINISTRY OF PUBLIC WORKS DIRECTORATE GENERAL OF HIGHWAYS

EXECUTING AGENCY

Technical Assistance for Support to the Project Management Unit of WINRIP 6 (Core Team Consultants) under World Bank Loan 8043-ID

2.6 Quality Assurance Performance Review of Design Supervision Consultants (DSC)

Design Preparation for WP2 and WP3 and construction supervision will be provided by a Design and Supervision Consultant (DSC), based in Padang and Field Supervision Teams (FSTs) for each civil works contract.“Under the existing DGH’s institutional structure, the sub-projects of the WINRIP are covered by three (3) Regional Implementing Agencies (Balai). Balai 1 that covers the northern part of Sumatera is located in Medan, Balai 2 that covers the western and central parts of Sumatera is located in Padang, and Balai 3 that covers the southern part of Sumatera is located in Palembang. Therefore, in addition to the assignment of Project Officer on the core team of the DSC that is located in Balai 2, it may be necessary to assign another Project Officers to supervise the regional team of the DSC located in Balai 1 and Balai 3 covering area.” For design preparation, The DSC will provide design for WP 2 and WP 3, or reviewing the available design when had been prepared by other consultant i.e. for Balai P2JN. For Construction Supervisionconsiderable emphasis will be given to strengthening the role and responsibilities of the DSC, and to measures that can be used to improve the overall quality of completed works. For Construction Supervision, the DSC will be required to put in place and enforce the implementation of a Quality Assurance Plan, and ensure that this is fully implemented by the FSTs. The CTC shall prepare and implement an agreed monitoring program to independently assess the effectiveness of the QA regime being implemented by the DSC.

2.7 Procurement Arrangements

The PMU will monitor the procurement of services (civil works and technical assistance) for the project, but will not undertake procurement directly. The CTC shall also be actively concerned with monitoring the procurement process, details of which are set out in the PMM. a. Civil Works

Procurement for civil works will be undertaken by DGH, through Procurement Committees “Pokja” to be appointed in each involved Regional Implementation Agency (Balai), under Work Units for Road Construction (Satuan Kerja – Satker). Whereas Work Units for National road works were previously responsible to the Head of the Regional Implementation Agency, from 1 January 2007 they have been the responsibility of the Head of the related Balai and hence more clearly under the authority of the Director General of Highways. The CTC shall include a Project Procurement Team (PPT) who will support the Regional Procurement Committees “Pokja” and the PMU, in facilitating the implementation of these services. Procurement Guidelines and Procedures

The World Bank Procurement Guidelines apply to the selection of Consultants and in all cases to the procurement of goods, works and non-consulting services at or above the thresholds for International Competitive Bidding (ICB). National procurement procedures will apply for of goods, works, and non-consulting services below the thresholds for International Competitive Bidding with certain modifications described in Annex 2 of the Loan Agreement. . Bidding documents for civil works will be based on the Standard Bidding Documents (SBD) or Standard Pre-Qualification Document (if applicable) of the World Bank, agreed between DGH and the World Bank. The “ruling language” and the “language for communications” as defined in the SBD shall be English. Materials in Bahasa Indonesia explaining the SBD are being prepared to support training, but shall be marked as “not valid as Bidding or Contract Documents”.


The detailed Procurement Procedures will be provided in the WINRIP Loan Agreement, and in the Project Management Manual (PMM).

2.8 Financial Management and Reporting

The PMU assisted by CTC will be responsible for the establishment of a Financial Management Information System (FMIS), and the accurate and timely reporting of all aspects of financial and physical progress of the project, but will not authorize any payments or disbursements themselves. Financial Management procedures for the project are fully described in the PMM, and these will be carefully followed by the PMU and CTC in the production of the quarterly Financial Monitoring Report (FMR), and the monthly Project Progress Report (PPR).

2.9 Supporting Implementation of the Environmental and Social Safeguards (ESS)

Environmental and Social Safeguards (ESS) have been prepared as a framework for assessment of environmental and social impacts, and the preparation of any mitigation, management and monitoring procedures required. This framework guides the activities required during project preparation and design; any land acquisition and/or resettlement activities (including the provision of any compensation required); and during contract implementation and construction supervision. While some of the environmental and social studies required during project preparation will have been completed by the Project Preparation Consultants, the PMU, supported by the CTC, will retain a range of responsibilities for environmental and social monitoring and management throughout the project. The DSC will be responsible for supervising contractor’s compliance with measures specified for environmental/social protection during construction, but the CTC shall supervise the performance of the DSC in this regard. As well, monitoring of land acquisition and of the satisfactory completion of LARAPs shall be required. This overall monitoring and reporting is a responsibility of the PMU. The CTC shall provide support to the PMU in this activity.

2.10 Training Program to Support Implementation

During the preparation of WINRIP, the need for an extensive Training program is identified, to provide a base of information and management training to support project implementation. The PMU will be responsible for initiation and/or monitoring of this program, and for monitoring and reporting in the monthly Project Progress Reports (PPR). For reasons of efficiency all training will be conducted in regional centres, such as Bandar Lampung, Bengkulu, Padang and Medan. The envisaged program is further described in Key Task Area 10 in these TOR.

3. SCOPE OF WORK FOR CTC 3.1 The Role and Function of the CTC

The Core Team Consultants assisting the Project Management Unit (PMU) for WINRIP shall play a major role in supporting the project management, monitoring and reporting functions required for the project, and shall provide significant assistance to the many new initiatives that will be undertaken by PMU.

As such, the requirements shall be very broad, and will include but may not be limited to the Key Task Areas summarised below: a. Project Management Support. Provide full support to the PMU in the exercise of all its functions.


b. Financial Management and Monitoring. Establish and maintain a financial management information system, monitoring and reporting procedures appropriate to the needs of GOI and the World Bank, and ensure the timeliness and accuracy of all financial reports.

c. Progress Monitoring and Reporting. Develop a monthly Project Progress Report that satisfies the needs of all stakeholders, and ensure the timeliness and accuracy of all reports.

d. Quality Technical Review for Design Supervision Consultants. Undertake technical quality guideline review to Detailed Engineering Design (DED) prepared by DSC.

e. Quality Assurance and Performance Review for Supervision Consultants. Undertake an independent performance monitoring of the effectiveness of construction supervision on behalf of the Employer, and the compliance of the DSCs with their stated quality assurance standards.

f. Implementation of Anti-Corruption Measures, and Monitoring their Effectiveness. Provide assistance as required with the establishment of anti-corruption measures necessary to support the project, and monitor and report their effectiveness based on the Anti-Corruption Action Plan (ACAP) agreed between the World Bank and the DGH.

g. Monitor procurement processes. Provide support to the civil works Procurement Committees to be established in the Provincial Satker for each contract package. Monitor the general quality of procurement activities and make recommendations on how standards can be improved. Provide assistance to the PMU for finalization and quality-control of procurement documents”

h. Information Management and Dissemination. Assist with the establishment and management of data and information capture systems and procedures, ensure the availability of all necessary information to stakeholders, and the effectiveness of information dissemination procedures.

i. Support Implementation of Environmental and Social Safeguards (ESS). Through overall project monitoring, assist the PMU to ensure that all environmental and social safeguards required are properly applied, at all stages of project preparation and design and implementation, and report regularly on this activity.

j. Support Project Performance Monitoring and Evaluation. Provide administrative support for the conduct of post-implementation surveys of project performance, using previously-prepared guidelines and procedures.

k. Training to Support Project Implementation. Support the implementation of the proposed training program.

3.2 Key Task Area 1: Project Management and Institutional Support

3.2.1 Support the PMU in all Aspects of Project Management

The PMU will be responsible as Secretariat (channel of communications for day-to-day management) of the project, and for ensuring the overall technical quality of the project implementation. Some of the primary responsibilities of the PMU were set out in Section 3.2, and the CTC shall support the PMU in discharging these and other functions. 3.2.2 Monitor Implementation Schedule and Activities

The CTC shall support the PMU to monitor the project implementation schedule, and associated activities, to ensure that all are initiated and undertaken in a timely fashion, and all reporting and other requirements are fully satisfied. As an example, each sub-project will require a careful field review to ensure that conditions are the same as those prevailing at the time of initial design. Where conditions have changed, design changes


will be required, Bidding Documents will need to be updated, and the contract negotiated to reflect such changes. Design validation and updating should be done during the tender period, to a schedule that ensures its completion before tenders are submitted. This will ensure that the design is as up-to-date as possible, and that a variation to the tender can be avoided as much as possible negotiated before contract signing. The design work will be undertaken and reported by the DSC. However, the PMU will need to ensure that this work is initiated and satisfactorily completed before works are contracted.

3.3 Key Task Area 2 : Financial Management and Monitoring

3.3.1 Preparation of Financial Monitoring Report (FMR)

The CTC shall support the PMU for preparation of the Quarterly Financial Monitoring Report (FMR). The FMR is the most important output of the project management function, and it has formal legal significance as it provides a ‘trigger’ for the release of the next tranche of funds from the World Bank to the Special Account from which disbursements are made. The quality, timeliness and accuracy of this report are central to the effectiveness of the entire project management task. The report is based on information for all components, from the units responsible for project supervision and management. The FMR structure, contents and format will largely follow the current form agreed by MOF for use with World Bank projects, and its standard formats are described fully in the PMM. 3.3.2 Preparation of a Financial Management Information System (FMIS)

The timely completion and accuracy of the FMR will depend very largely on the quality of the systems and procedures developed to provide for the collection and processing of financial data. Financial Management Information System is to be prepared that will fully provide for all aspects of these requirements, and again is expected to build on comparable systems already in operation, modified as required. Tasks of the CTC shall include assisting PMU to:

a. Review existing financial database and reporting systems being used for current projects (eg EIRTP-2, SRIP), identify needed enhancements that will allow their adaptation and use for WINRIP, and undertake the necessary system developments.

b. Establish appropriate accounting and recording systems at regional level (in the implementing units) to collect, process and transmit to PMU data concerning all aspects of project progress.

c. Monitor the performance of implementing units in operating the systems and procedures and provide assistance as necessary to overcome any shortcoming or difficulties found.

d. Maintain the central accounting systems and data bases needed to ensure accurate financial records of the project. These must meet the requirements of: • GoI financial reporting systems • FMR • Other data likely to be requested by the World Bank

The systems and procedures to be implemented are detailed in the Project Management Manual (PMM).


A detailed Work Plan for this set of activities shall be prepared as part of the Inception Report.

3.4 Key Task Area 3: Project Progress Reporting

The CTC shall assist the PMU in the preparation and distribution of Monthly Project Progress Reports (MPR), which will document the progress of each project included in the overall WINRIP program.

The MPR is intended to provide information about the progress of procurement and tender awards; physical progress of the works; reports of technical audits, and of other periodic investigations of performance conducted. As such, it will provide the central reporting element to the World Bank about the overall performance of the WINRIP components.

During the Inception Reporting period, the CTC shall carry out the following tasks to identify the content and structure of the MPR,:

a. Discuss with the PMU, Implementing Agencies, and the World Bank the information required to be regularly reported;

b. Identify how best to obtain the required data, and recommend systems and procedures for this purpose;

c. Recommend in the Inception Report, an appropriate structure and format for the MPR, and report on all actions required to be undertaken to initiate the process;

d. Implement the procedures; evaluate and report the results; recommend to PMU how policy, procedures or guidelines should be modified to improve specified aspects of performance; recommend any modifications to the content, structure and/or format of the MPR that might improve its effectiveness.

3.5 Key Task Area 4 : Quality Technical Review of the Design Supervision Consultants

The CTC shall support the PMU with coordination with Directorate Technical Affairs (DTA) to undertake technical quality review to the Design Preparation by DSC. The CTC will ensure the design incorporated all aspects of road safety and environmental issue (if any).

3.6 Key Task Area 5: Quality Assurance and Performance Review of the Design Supervision Consultants

The CTC shall support the PMU to undertake an independent performance monitoring of the effectiveness of construction supervision on behalf of the Employer, and the compliance of the DSC with their stated quality assurance standards. The Design and Supervision Consultant’s (DSC) Team Leader will be assigned as the Engineer for the contracts, appropriately delegated by the Employer with duties and authority as defined by FIDIC General Conditions of Contract, 2006 version included in the Conditions of Contract in the World Bank SBD. The Field Supervision Teams (FST) staff for each sub-project will be delegated “Engineers Assistants” with duties and authority specified by the Engineer. Nevertheless the Engineer will retain overall responsibility. The Quality Assurance Plan (QAP) to be implemented by the Supervision Teams will be used to demonstrate the performance of the site supervision teams. The QA plan will also provide for the test types, the frequency of testing, conditions for acceptance and inspection at “Holding Points” defined by the General and Special Specifications.


All specified routine testing will be carried out by the contractor in site laboratories or at commercial off site laboratories. The DSC will have a facility for independent laboratory testing, for audit of site materials quality. The CTC shall conduct reviews of the performance of the DSC, to ensure the effectiveness of site supervision. This will comprise routine review of the DSC QA plan and reports and in addition there shall be not less than two CTC field inspections for technical review of DSC Performance per works Contract. This inspection shall be conducted at approximately 30% and 60% of individual contracts progress or at other times that may be agreed with the Employer. Additional inspection may be undertaken at other times as necessary to resolve specific quality, non-compliance or proposed sanctions issues relating to:

• Failure of the DSC to adequately control or report works quality or progress; • “Withdrawing approval to the Contractor’s Representative” (GCC 6.9); • “Suspension of the Works” (GCC 8.8); and • Other matters.

The technical review shall assess individual Contract progress and quality, relative to reported progress and specified quality. Relevant DSC/FST administrative procedures and documentation to be included in the review process may include but shall not be limited to:

• Instructions in Writing; • Materials testing records; • Implementation of corrective measures by the Contractor following materials test non-

compliance; • Effectiveness of procedures implemented by FST for inspection of works; • Effectiveness of the DSC materials testing program.

The CTC may witness control tests in either the contractor’s or DSC laboratory or may order independent tests. These technical review could be parallel with or in supporting to the technical audit carried out by Inspectorate General (IG) The CTC technical review report shall identify areas where improvements may be required. In extreme cases, the CTC may recommend that actions be applied, including dismissal or reassignment and replacement of any staff found not to be satisfactorily fulfilling their duties. In addition to technical review the CTC shall conduct independent Road Safety Audits (RSA) for all sub-projects. The RSA for AWP 1 shall be conducted one time during construction. The RSA for AWP 2 and AWP 3 shall be conducted each one time during design and each one time during construction, and make sure that some initial RSA action have to be incorporated in the design for AWP 2 and 3. The purpose of the RSA is to identify the road safety weaknesses in design during the design and actual construction and make recommendations for realistic improvements which can be handled within the scope of the construction works of the project. The CTC shall compile all the road safety recommendations in the Road Safety Audit Reports which shall be part of the technical reports stipulated in Section 3.12.3. The RSA report has to be disseminated in particular to the audited packages.

3.7 Key Task Area 6: Support for Implementation of Anti-Corruption Measures, and Monitoring their Effectiveness


The agreed Anti-Corruption Action Plan (ACAP) prepared for WINRIP is included in these TOR in Annex 2. Detailed implementation procedures are provided in the PMM, and will be followed by all project participants. Some participants are likely to need assistance to properly undertake these tasks to the satisfaction of all parties. It will be the task of the PMU, supported by the CTC, to provide assistance with all aspect of the implementation of the ACAP. The following tasks particularly need to establish procedures to be undertaken:

- Selection of Community Representative Observers (CROs) of civil society groups to attend the public bid openings and other key procurement steps. These CROs will be invited from local universities or other selected independent institutions, and will sign the attendance list for the procurement/selection process.

- Establishment of a Third Party Monitoring (TPM) mechanism whereby the media and civil society groups can become involved in monitoring the progress of the project. This mechanism will include regular sharing of information with the media.

- Establishment and management of a Complaints Handling Mechanism (CHM) which includes maintaining project complaint log and filing to monitor status of follow-up of each complaint. This mechanism will include provision for follow up investigations of substantial complaints by the Inspectorate General or third party audit to ensure independence and reliability of the system.

These tasks shall be led by a Community Development Officer.

3.7.1 Public Disclosure

The Ministry of Public Works maintains a website (http://www.pu.go.id/) with a link to DitJen BinaMargahttp://www.pu.go.id/punetnew2010/subindex.asp?pid=0404which will present further links to both “WINRIP” and “PMU Bina Marga” (http://pmu-binamarga.com/). The WINRIP site will be developed to serve for the project. Preparations have been initiated by PPU and PPC. The CTC shall support the PMU for further development, operation and maintenance of the site.

The CTC shall support the PMU to edit or prepare the following materials to be suitable for uploading to the site:

a. Project Management Manual; b. Annual procurement plans for central level and for each province; c. Tender documents for all procurement exercises (requests for expressions of interest and

requests for proposals); d. Notification of details of contracts awarded (company, value of contract, scope and

location of services); e. Final audit reports; f. Monthly report on project progress (financial and technical) with a breakdown by province g. Information on the WINRIP complaints handling mechanism, including post, telephone, fax

and email contact details in both the DGH Directorate of Planning and the MPW Inspectorate General’s Office;

h. Quarterly status report on complaints handling (numbers received and acted upon only); and

i. Report on sanctions imposed on contractors or consultants under the ACAP.

http://www.pu.go.id/�

http://pmu-binamarga.com/�


The Anti Corruption Action Plan includes provision for anonymous complaints. All information on the project website will also be available upon request to interested persons/organisations by email or post. The CTC shall support the PMU to arrange that the MPR will be distributed to civil society and media at the provincial and district levels by email or post.

3.7.2 Promotion of e-Procurement

The Ministry of Public Works’ Data Centre (Pusat Pengolahan Data) has established a Full and Semi E-procurement system which is in actively used. At the start the Semi E-Procurement will be used for the AWP-1 packages, as agreed on the loan negotiation. The using of Semi E-Procurement will follow the previous Loan as SRIP. The Full E-Procurement at this stage still being reviewed and assessed by the World Bank. Once the World Bank can agree, then the Full E-Procurement will be used. The Semi E-Procurement will follow conditions as follows:

a. Automated email notification to all registered bidders of the availability of any document relating to the procurement;

b. Automated acknowledgement of receipt of email notification to all registered bidders of the availability of documents;

c. During the Prequalification, the list of companies that registered for bidding must be kept confidential;

d. “Registration for Prequalification” in the e-procurement system shall be revised to “Registration of Interest”, if pre-qualification is not applicable, and the contents revised to avoid implying prequalification necessarily takes place; and

e. The step by step registration process for Users shall be provided at least on the Information for Bidder (IFB) on the e-procurement site.

The CTC shall support the PMU to ensure the successful incorporation of the enhancements above and the application of the e-procurement system for WINRIP procurement.

Should full transaction-based e-procurement agreed by the World Bank, it will be implemented for WINRIP, with World Bank’s prior no objection and provided that the system complies with the requirements of “E-bidding Requirements for MDB Loans, Grants and Credits” dated May 2005.

Once Full E-Procurement used, then Paper-based procurement will no longer continue to be an option on all WINRIP procurement exercises.

3.7.3 Monitoring of Specific Measures

In addition to the above, the ACAP specifies certain requirements which should be monitored by PMU. The CTCshall assist in the following areas:

a) The World Bank Standard Bidding/Pre-Qualification Documents will be used for all civil works, with specific conditions agreed in advance between the World Bank and the DGH. The application of these documents should be monitored and evaluated, making recommendations on improvement of the Particular Conditions of Contract.

b) The World Bank will conduct prior as specified in the procurement plan. The CTC shall monitor application of these requirements, making recommendations on improvement of procedures.


3.8 Key Task Area 7: Monitor the Procurement Process and the Project Procurement Team (PPT)

The CTC shall support the PMU to monitor the civil works procurement process through the Project Procurement Team (PPT).The PPT shall work directly with the procurement committees in the provinces to provide training, advice and assistance with the procurement of civil works. The PPT shall report to the Regional Office for National Road (Balai) and to the PMU. The CTC shall support the PMU to monitor and report against the general process of procurement, including progress against the annual procurement plan, perceived transparency and reported problems with non compliance with procedures.

The CTC shall support the PMU to keep the procurement schedule on track as far as possible, and to ensure that it is maintained current, and incorporates necessary changes. This schedule shall be the basis for the field deployment of the PPT, and it is essential that the PPT activities shall fully incorporate all requirements of the PMU.

The CTC shall identify any areas where improvements in procurement performance are required, and recommend measures to be implemented to achieve such improvements. The primary objective of the CTC PPT is to help ensure that the procurement of civil works proceeds smoothly in accordance with all the applicable guidelines and regulations. The services shall provide support to the Head of Satker and the Procurement Committees, to help ensure that procurement and award decisions are undertaken in such a way as to avoid collusive, fraudulent, corrupt and coercive practices (“fraud and corruption”). The CTC PPT shall be an integral part of the CTC and shall be based in Jakarta, but the team shall spend extended periods of time delivering the services in the Provincial Satker offices. It is anticipated that a typical procurement cycle in any province will require the advisors to be present in the province in line with the indicative schedule below (this will be developed by the consultants on a case by case basis):

• Initial visit to meet / assess Procurement Committee 1 week • Training / assistance to Committee 5 days • Review bid documentation (admin, not technical) 3 days • Attend Pre-bid meeting (if any) 1 day • Attend Bid submission / opening 2 days • Assistance during bid evaluation 2 weeks

It is important that the CTC PPT services are provided in an appropriately professional and consistent manner free from bias and conflicts of interest. The CTC shall schedule his staff assignment to ensure the most effective deployment within these constraints. Interim arrangements may be made for the PPC/PPTA to provide limited advisory support for procurement for AWP 1 projects, for which procurement will begin before the appointment and mobilization of the CTC PPT services. The CTC PPT must be familiar with all of the project documents and the procurement requirements therein. While the general role and functions of the PPT are set out below the CTC shall exercise all possible efforts to prevent fraud and corruption and shall be committed to reporting every perceived occurrence. A full description of the Scope of Works of the CTC Project Procurement Team is provided in Annex 1.


3.9 Key Task Area 8: Information Management and Dissemination

The PMU will face a major information management task, and will be the repository of many important and valuable documents, reports, contracts and data. It is essential that these materials be indexed, copied and stored in a way that ensures that they will continue to be available for the long term. It is important also that key stakeholders can readily gain access to these materials as required.

The CTC shall provide technical support as required to the PMU in the development, application and maintenance of an appropriate and effective information and document management system, that provides a comprehensive, reliable and cost-effective service available to all stakeholders.

The PMU for EIRTP-2and SRIP developed and used a document scanning and electronic storage management system based around a “Canofile” which scanned documents page by page and stored images on hard disk. This initiative was established in 2001, and by now may be dated or superseded by newer technologies or approaches to information and document management. There is therefore a need as a first step, to critically review current technology, and identify an appropriate approach for use by the WINRIP PMU. It should be noted that there may be a legal need to retain some of the materials for a substantial period of time beyond the completion of the project, and the selection of the technology will need to consider this aspect.

The tasks for the CTC shall include the following:

i. Review the systems and procedures developed by the EIRTP-2 PMU, the SRIP PMU and the EINRIP PMU, and the technology used, and identify ways by which the service provided can be enhanced or expanded;

ii. Review available appropriate technologies, and identify the most appropriate options for consideration by the PMU;

iii. Support the PMU in the establishment of systems and procedures for the implementation and application of the service.

The CTC shall provide an Information Document Management Specialist who will prepare a filing system (physical and computer), including file-naming conventions for PMU and CTC, document handling and filing procedures for all reports, correspondence, contracts and other documents, both produced by PMU and by others. Assistant computer operator and Secretarial support for the PMU shall also be provided by the CTC.

3.10 Key Task Area 9 : Support Implementation of Environmental and Social Safeguards (ESS)

3.10.1 Support to DGH

Considerable emphasis has been given to strengthening the handling of environmental and social aspects of the WINRIP program, including the preparation of an appropriate statement of the environmental and social safeguards to be used in the project. It is very important that all aspects of project preparation and implementation fully observe the requirements of the ESS, and to this end, it is essential that continuous monitoring of the project in respect of these provisions is maintained. The CTC shall provide continuous support to the DGH in this activity, including support and advice to the DSC with regard to staff training and field supervision activities.


3.10.2 Monitoring Land Acquisition

The Project Preparation Consultants (PPC) undertook project preparation activities for WINRIP, including the preparation of all UKL/UPL, AMDAL, SLARAP and LARAP studies required. These will be undertaken directly, or through consultants recruited to complete particular studies. The PPC also provided support for the field implementation of land acquisition activities for most sub-projects. For the remaining land acquisition activities after the CTC is on board, the CTC shall assist with this activity, and shall interface with the PPC to effect a smooth transition of responsibility for the monitoring of remaining uncompleted land acquisition and resettlement activities. 3.10.3 Monitoring the Implementation of LARAPs

The ESS requires that independent institutions (such as local NGOs, Universities or similar) be retained to periodically carry out external monitoring and evaluation of the implementation of LARAPs, and it is stated that at least 15% of the projects included in WINRIP should be monitored. The CTC shall support the PMU in this activity, and shall be required to undertake the following tasks:

a. Carefully monitor the requirements of each project for environmental or social mitigation measures before procurement and during construction, and identify the level of independent monitoring needed to satisfy the requirements and intention of the ESS;

b. Prepare TOR for the required monitoring activities, assist the PMU to prepare a short-list of agencies qualified to operate as consultants for the required studies, and support the procurement process; and

c. Monitor the performance of the activity, and ensure that any remedial actions or interventions identified as being required are promptly and fully reported, and undertaken.

3.10.4 Monitoring the Performance of the DSC

The CTC shall provide support to the DSC in all aspects of contract supervision with respect to environmental and social aspects of the contract provisions, and for the preparation and delivery of the training program required for Field Supervision Teams and contractors. As well, the CTC shall also be required to monitor the overall performance of the DSC, in their supervision of each contract. This will require field monitoring of the progress of a sample of contracts, to be selected based on reports from the CTC’s Quality Assessment Team, and/or from other reports about the adequacy of contractors’ performance. This activity shall be more than just monitoring the DSC QA program, but shall be designed to identify issues at an early stage, so that remedial measures can be taken if the performance of individual teams appears to be unsatisfactory. As such, program planning procedures shall be prepared as part of the CTC’s QA monitoring plan, and implemented following discussion and approvals of the DGH.

3.11 Key Task Area 10 : Support for Project Monitoring and Evaluation

3.11.1 Over view

The Monitoring and Evaluation (M&E) program is being independently supported by the World Bank, and is intended to establish the extent to which WINRIP meets its objectives, which are to support economic and social development in Sumatra, Western Indonesia. The development of the regions will depend on many other factors besides road provision, and the impact of the road programme will be difficult to measure. Accordingly, it has been decided to concentrate on the measurement of agreed


“performance indicators”, which are variables such as vehicle operating costs, which result in economic benefits that can be attributed to the road improvements. In addition, a programme of social surveys, using panels of key informants, will be used to provide anecdotal evidence and qualitative insights into local social and economic changes that might arise following road improvements and to identify any unanticipated outcomes. Secondary sources will be used to monitor regional and social developments at macro-level. 3.11.2 Sur veys and R epor ting

The CTC shall carry out baseline surveys, soon after consultant mobilized Monitoring shall continue until the completion of the project. The CTC shall prepare annual reports of the results of the survey programme. On completion of the monitoring period, a Final Project Review shall be undertaken to provide an overall evaluation of the project. The surveys for the indicators requiring a large-scale survey, such as traffic counts, road conditions, etc. shall be conducted for the baseline and the completion only. The achievement of the above objectives shall be monitored on an annual basis by measuring performance indicators relating to each objective and comparing the outturn with the target for each year. A progress report shall be produced annually to describe the results of the monitoring exercise. 3.11.3 Key Performance Indicators

Key Performance Indicators are developed and agreed between the World Bank and GOI, and will be monitored over the whole project period and changes in variables will be calculated annually. The set of indicators are described in the Project Appraisal Document (PAD) and the Loan Agreement between the GOI and the World Bank. 3.11.4 Tasks for the CTC

3.12 The CTC shall undertake the surveys for key performance indicators. The cost of the surveys shall be designated as a provisional sum. Key Task Area 11: Training to Support Project Implementation

Internal training of central and regional government staff will be required to support and strengthen administration and management of the Project throughout its implementation. This will help ensure that procedures for procurement, project administration and monitoring are well understood, to explain the safeguard aspects of the Project including the Anti-Corruption Action Plan and the Environmental and Social Safeguards (ESS), and to reinforce technical guidelines as required.

The training to be provided will be an extension of normal DGH training programs that address the subjects outlined below:

Topic Purpose Target Agencies/Units Estimated Trainees/Yr

Procurement training (including provisions of ACAP)

Special training in procurement for members of Procurement Committees Detailed provisions of ACAP

Procurement Committees at Province level Procurement

Committees at Central level

30

Training in Project Management

Basic civil service training Prospective staff for Satker (Work Units) 20

Refresher Training in Feedback to project Work Units (Satker) in 60


Topic Purpose Target Agencies/Units Estimated Trainees/Yr

Project Management management staff from wider experience

Provinces

Application of PMM (including other provisions of ACAP)

Familiarization with Project Management requirements Awareness of particular

requirements of ACAP

Senior staff of Provincial Agencies Administrative staff Technical staff

60

Financial Management Reporting Training (follows on from PMM Training)

Procedures for monthly data collection, consolidation and reporting, for Procurement, Disbursements, Physical Progress

Staff of SatKer Staff of Provincial

Finance Agencies Technical staff

30

Environmental Monitoring Workshops

Review of results of ESCs (Environmental Special Clauses)

(to be provided by DSC)

Provincial Works Agencies Supervising consultants Contractors

30

Training for Treasurers (Brevet A course)

Basic civil service training for financial officers

Project Units (Satker) in Provinces 20

The CTC shall support the DGH for the development and application of the training program, and assist with administrative support as required.

3.13 Key Task Area 12: Reporting

3.13.1 Inception Reporting

The CTC shall prepare an Inception Report at the end of the second month of services, describing how the Consultant proposes to address the key tasks required, with particular attention being given to the following:

• Review the systems and procedures currently being used for Financial Monitoring and reporting, and identify the extent of any work required to put in place functioning procedures, and determine the likely time and resources required for such work;

• Review the requirements for a monthly Project Progress Report, identify an appropriate structure and format, and report on all actions required to be undertaken to initiate the process;

• Review the Quality Assurance Plan prepared by the DSC, and identify procedures to be used for its independent monitoring, including the approach proposed for the application of Technical Audits

• Review opportunities for advisory support to Procurement Committees, and identify a suitable work plan for the procurement advisory team

3.13.2 Management Reports

The CTC shall :

i. Submit a Monthly Progress Report on the Consultant’s work by the 10th day of the following month; This report should include a review of actual progress against the programmed schedule with any delays highlighted. The CTC shall, if requested, make a formal presentation of the report to the client explaining the key details and identifying priority actions.


ii. Submit a Procurement Committee Readiness Assessment Report indicating the readiness of each Committee to proceed with the bid process. A report confirming satisfactory conditions will be required before bidding can proceed. This report should indicate the composition of the Committee and a clear line of command (to whom they report etc.). The report should also include clear recommendations for any strengthening measures where the assessment indicates these are required.

iii. Provide a Bid Evaluation / Procurement Report for each contract detailing all relevant aspects of the bid process from advertising through to final bid evaluation and award recommendation report. (Note: This report is not the same as the committee’s Bid Evaluation Report) This report should identify all issues relating to compliance or non-compliance with the required procedures and guidelines that have arisen and what action has been taken or the Procurement Committee proposes be taken to rectify said non-compliance.

iv. Provide a Draft Project Completion Report on the Project three months before the end of the Services, following a report structure to be agreed with DGH and with World Bank;

v. Provide a Project Completion Report on the Project by the end of the Services, based on comments received from PMU and concerned agencies on the Draft report; and

3.13.3 Technical Reports

As well as management reports, the CTC shall issue Technical Reports based on ad hoc requirements, to show the results of major work undertaken to be properly documented, and provide the Client, the World Bank and to other agencies. Such reporting shall be based on the normal professional method of documenting the results of work undertaken, and the individual topics/reports required have not been separately identified. All Reports shall be produced in English and in 20 copies, and shall satisfy a high professional standard. All Reports and data collected or produced during the project, and all programs and other materials developed, prepared or obtained during the project, will be the property of GoI, and are to be provided as requested, or handed over at the end of the Project, to the Project Manager.


4. STAFFING 4.1 Time Schedule

The consulting services covered by these Terms of Reference cover the 40 month period commencing around end of first quarter of 2012 and continuing up to the Loan Closing Date for WINRIP, expected to be end on middle 2017. 4.2 Location of Services

The main office for the service will be located in Jakarta. 4.3 Suggested Staffing

Key personnel on the staff shall include international and national experts. The number of person-months estimated to be required for each position is given in the Table below. The skills considered to be required to undertake the services are also listed. The Financial Proposal for the Services shall be based on the number of person months stated below. During the course of the assignment should the need arise for different skills, or for changes in inputs of the identified skills, the Consultant shall make changes to the staffing at the request of the Project Manager. The Consultant is advised to take into account the physical demands of the task and the Sumatra Region when proposing staff. The consultant’s team shall consist of the professional staff positions nominated below, not including other support staff and sub-professional staff, which are separately listed. Senior professional staff will have at least a relevant 3-year degree from a recognised international university; other professional staff shall have a relevant S1 degree from a recognised college or university.

Total Months:

Position No Staff Months: KEY International National

1. Team Leader Key 1 40 2. Assistant Team Leader Key 1 40 3. Senior Highway Engineer 1 8 4. Highway Engineer Key 1 36 5. Quality Assurance Specialist Key 1 36 6. Financial Management Specialist Key 1 36 7. MIS/Programmer/Information Management

Specialist 1 30

8.Environmental Specialist Key 1 30 9. Social Impact Specialist Key 1 36 10. Community Development Officer 1 36 11. Senior Road Safety Audit Engineer 1 6 Procurement Advisory Team 12. Senior Procurement Specialist key 1 18 13. Procurement Specialist Key 2 24 Totals International 4 72 National 10 304


Assistant Technical Staff: Assistant Procurement 2 24 Assistant Highway Engineer 1 30 Assistant Financial Management 1 36 Assistant Environmental/Social 1 30 Assistant MIS/Programmer 1 30 Assistant Community Development Officer 1 30

4.4 Position Descriptions and Requirements 4.4.1 Key Professional Staff (will be evaluated in the proposal)

Position 1. Team Leader Major Function/Tasks: Manage all activities of the Team; Liaise with PMU, other Agencies;

overall reporting, technical leadership and quality control. Particular Experience Required:

Civil/Highway Engineer with at least 15 years of relevant experience in the areas of highway engineering or planning, construction supervision and project management. Familiarity with the management of major aid funded projects desirable. At least 5 years experience in developing countries essential, with experience in Indonesia desirable.

Position 2. Assistant Team Leader Major Function/Tasks: Support team in project management. Lead responsibility for

ensuring timely data collection, reporting and completion of FMR and PPR. Liaise with Balai and Provincial agencies.

Particular Experience Required:

Civil/Highway Engineer with at least 10 years of relevant experience in the areas of highway engineering design, construction supervision and project management. Familiarity with the management of major aid funded projects desirable.

Position 3. Highway Engineer Major Function/Tasks: Support Senior Highway Engineer in project management of

highway engineering aspects and support/advice and performance monitoring of DSC.

Particular Experience Required

Civil/Highway Engineer, experienced in design and supervision of construction of National or Provincial highways and bridges in Indonesia. At least 7 years experience in these areas.

Position 4. Quality Assurance Specialist Major Function/Tasks: Support DGH in quality assurance, including direction, management

and monitoring DSC. Particular Experience Required:

Civil/Highway Engineer with at least 8 years experience in construction supervision of road/ bridge projects; experience in QA and/or procurement procedures.

Position 5. Financial Management Specialists Major Function/Tasks: Manage receipt and processing of data for FMR; audits; liaison with

MOF Particular Experience Required:

Accountant/Finance Manager with at least 6 years experience in Financial Management; experience in the requirements of the MOF


essential; familiarity with the requirements of funding agencies for financial reporting desirable.

Position 6. Environmental Specialist MajorFunction/Tasks: Support DGH Environmental Unit; support Senior

Environmental/Social Specialist in all environmental management and monitoring activities.


At least 8 years experience in environmental management and monitoring; experience in environmental management of road projects. AMDAL A Certificate.

Position 7. Social Impact Specialist Major Function/Tasks: Support DGH Environmental Unit; support Senior

Environmental/Social Specialist in all social impact management and monitoring activities.


At least 8 years experience in social impact management and monitoring; experience in social impact management of road projects.

Project Procurement Team Position 8. Senior Procurement Specialist Major Function/Tasks: Manage all activities of the CTC Project Procurement Team (PPT),

liaise with the CTC Team Leader, with the PMU, and other agencies; reporting with respect to Procurement matters, technical leadership and quality control.


Procurement Specialist, or Highway Engineer / Contracts Specialist with a suitable university degree and substantial procurement experience using World Bank procurement documents and procedures. At least 15 years experience in these areas, with at least 5 years experience in developing countries.

Position 9. Procurement Specialist Major Function/Tasks: Support Senior Procurement Specialist to perform all activities of the

CTC PPT. Particular Experience Required

Procurement Specialist, or with a degree in Engineering, Law or Business Administration, experienced in the use of World Bank procurement documents and procedures. At least 5years experience in these areas.

4.4.2 The following positions will not be considered in evaluation of proposals. However, the Client reserves the right to request for replacement during contract negotiation/finalization if the proposed candidates do not meet the qualification requirements specified as follows:

Position 1. Senior Highway Engineer Major Function/Tasks: Support team in project management of highway engineering

aspects and support/advice and performance monitoring of DSC. Particular Experience Required

Civil/Highway Engineer, experienced in design and supervision of construction of National or Provincial highways and bridges in Indonesia. At least 8 years international relevant experience in these areas.

Position 2. Senior Road Safety Audit Engineer Major Function/Tasks: Perform the independent Road Safety Audit for all sub-projects and

make recommendations for road safety improvements.



Highway/Road Safety Engineer, experienced in traffic or highway engineering and road safety design and audit. At least 8 years international experience in these areas.

Position 3. MIS/Programmer/Information Management Specialist Major Function/Tasks: Prepare a filing system (physical and computer) with file-naming

conversions, document handling and filing procedures for all reports correspondence contracts and other documents produced in the project, also Technical leadership of design and programming of software required for FMIS, for data analysis and reporting for FMR, information management systems.


At least 6 years experience with the design and software development of management information systems, preferably for Financial Monitoring and reporting also experience with document management and filing by physical and computer based handling.

Position 4. Community Development Officer Major Function/Tasks: Support DGH in establishing CROs, TPM and CHM, monitor

implementation status of ACAP in these aspects. Particular Experience Required:

At least 5 years experience in areas related to community development and civil society monitoring of public activities.

4.5 Key Professional Staff

The nine (9) staff positions listed below is considered Key Professional Staff. The CVs of the Key Professional Staff shall be submitted in the Technical Proposal, and will be evaluated in the Technical Evaluation. The CVs of other staff are not

i. Team Leader

required to be submitted in the Technical Proposal, but will be required for approval by DGH prior to mobilization. The positions are to be included in the Financial Proposal, but will not be named. Key Professional Staff include:

ii. Senior Procurement Specialist iii. Assistant Team Leader iv. Highway Engineer v. Quality Assurance Specialist vi. Financial Management Specialist vii. Environmental Specialist viii. Social Impact Specialist ix. Procurement Specialist

4.6 Sub-Professional and Supporting Staff

The cost of the staffs positions designated below shall be included in the Financial Proposal. Supporting Technical Staff:

i. Assistant Procurement (2) ii. Assistant Highways Engineering (1)


iii. Assistant Financial Management iv. Assistant Environmental/Social Planner v. Assistant MIS/Programmer vi. Assistant Community Development Officer

Office Staff:

vii. Office Manager viii. Bilingual Secretary (2) ix. Secretary (2) x. Computer operator (2) xi. Data manager, financial/progress reporting xii. Draftsman/CAD operator xiii. Driver (5) xiv. Office boy xv. Guard

5. FACILITIES FOR THE EMPLOYER The following facilities and provisional sums shall be provided for in the Consultant's financial proposal. Provisional sums shall be included in a separate section in the financial proposal. The use of all provisional sums is subject to the written approval of the PMU and the Sub-Project Manager for the CTC services. a. Overseas Training for DGH and PMU:

b.

Provision for overseas visits and training for staff of DGH/ PMU. 20 persons = Rp. 1,000 million.

Training and Workshops:

c.

Provision of support for Project Launch Workshops, and Bina Marga Training and Workshops, etc. Allow a sum of Rp500 million.

Independent Monitoring of ESS :

Provisional Sum of Rp 500 million to provide for independent monitoring of implementation of ESS.

6. FACILITIES TO BE PROVIDED BY THE EMPLOYER Data and Reports

7. FACILITIES TO BE PROVIDED BY THE CONSULTANT

: The Employer will provide all data, reports and information needed to support the Services, as promptly as possible upon request.

Office and Computing Facilities in Provincial Offices : The CTC PPT services shall provide technical support to the Procurement Committees, and any office supplies and computing or office equipment required to directly support the WINRIP procurement committees will be provided through the Incremental Operating Costs provided to support the PMU


8. OTHER FACILITIES

8.1 Provisional Items

Both the scope of the Services and the size of the Sumatra Region are very large, and as a result there are many uncertainties about the scale of effort required (particularly travel requirements) to satisfy possible future needs. As a consequence, for the purpose of preparing a Financial Proposal, a number of items are to be included as Provisional Sums, as nominated below: a. Duty Travel and Out of Station Allowances:

b.

The amount of Rp. 600 Million shall be provided to cover the cost of Duty Travel, covering all air and land travel costs (not including travel to each project site) and OSA, for CTC staff for the duration of the Services. Provincial Travel for QA monitoring team

c.

: The amount of Rp. 500 Million shall be provided to cover the cost of vehicle rental and incidental expenses (e.g. material sampling and testing for audit purposes) for site visits to be made by the QA team, and for other local travel. Training and workshops for the procurement committees:

d.

The amount of Rp. 1,000 million shall be provided to cover the cost of project specific procurement training for the Procurement Committees of WINRIP packages. An appropriate training plan shall be devised by the CTC after an initial needs assessment. Duty Travel and Out of Station Allowances:

e.

The amount of Rp. 600 million shall be provided to cover the cost of Duty Travel, covering all air and land travel costs and OSA, for Project Procurement Team staff for the duration of the Services, and including OSA and travel costs for authorized personnel from DGH and Provincial Procurement Committees to attend such meetings as may be required at regional Balai or Jakarta. Survey Cost for Key Performance Indicators

: The amount of Rp. 500 million shall be provided to cover the cost of conducting surveys for key performance indicators.

8.2 Other Items

All other facilities required for the successful provision of the Services shall be provided for in the Financial Proposal. These will include (but may not be limited to): a. Office Rental for an office in Jakarta; b. Office Supplies, equipment, furniture and running costs, for a Jakarta Office; c. Vehicles Rental for at least 5 (five) vehicles (including operational and maintenance cost) and

running costs to support the Jakarta office; and d. Other items considered necessary for the Services.

Terms of Reference for the WINRIP Core Team Consultants (CTC) : Annexes


ANNEX 1

SCOPE OF WORK FOR THE PROJECT PROCUREMENT TEAM

Major Tasks

The functions of the CTC Project Procurement Team (CTC PPT) shall include but may not be limited to the activities summarised below.

i. Review all arrangements made to support project procurement, including the “readiness” of the Procurement Committees (their staffing, skills and experience, training); administrative and support arrangements; adequacy of facilities, equipment and materials; suitability and feasibility of the proposed Procurement Schedule for each contract, and all related matters. Report to DGH and the World Bank on the readiness of the Committees and its supporting arrangements to initiate procurement. Agreement to implement the recommendations of this report will be a precondition for the World Bank’s NOL to start procurement;

ii. Each PIU /Satker is required to include a qualified procurement specialist and a financial management specialist whose duties will include ensuring adequate record keeping for audit purposes. The CTC PPT shall monitor compliance with this requirement, and report to DGH in the event that it is not being satisfied;

iii. Provide procurement training for project staff (particularly in the Procurement Committees) to ensure familiarity with the procurement process required by all stipulated guidelines and regulations. In addition to explanation and clarification of the procurement guidelines, training should include guidance in

• Development of bid and proposal assessment and evaluation criteria; • Determination of compliance and responsiveness (post qualification); • Bid evaluation – arithmetical checks, errors and omissions; • Preparation of a bid evaluation reports; • Conducting any final negotiations; and • Preparing final contract documents.

The evaluation of readiness of the Procurement Committees shall serve as a training needs assessment and shall guide the extent and focus of training activities.

iv. Monitor the establishment and use of the “semi” e-procurement system and when available of the “full” e-procurement for WINRIP in the DGH, and in the offices of each of the 3 / 4 Provincial Project Managers/Head Satker responsible for WINRIP contracts. Provide assistance in the use of the system by the Procurement Committees as appropriate; check that documents can be accessed and downloaded from the system and check that e-mail addresses published are valid and working.

v. Provide support for the publication on the official project website (MPW website, Client Connection of the World Bank dg Market and UNDB online, as required) and posting elsewhere of all required information and documents, including :


WINRIP CTC TOR Annexes 27

• Invitations to Bid • Owners Estimate • Bidding documents • Clarifications to queries from bidders about provisions in active bidding

documents prior to bid submission • Bid opening minutes • Information on contract awards • Other issues as required by DGH and/or relating to the provisions of the

ACAP.

vi. Develop measures / protocols to help detect and prevent collusive / fraudulent / corrupt/coercive practices in the bidding process for contracts, and assist and monitor their implementation and application;

vii. Attend bid openings for all procurement events and retain in a safe place a copy of all bid documents received. If the CTC PPT is unable to attend bid openings for any reason, the CTC are to appoint a Public Notary (Notaris) to discharge their functions;

viii. Provide support to the procurement committee for the evaluation of bids, including monitoring the validity of bid bonds, guarantees and other instruments, and advise on the interpretation and application of procurement guidelines and procedures to be used for this project; assist preparation of the bid evaluation report and review for completeness prior to submission

ix. Monitor each PIU and Procurement Committee’s adherence to the Procurement Schedule, and help ensure that all procurement processing and award decisions are made within the agreed time frame, and that delays and associated risks are avoided;

x. Liaise with the consultant providing parallel procurement advisory services under SRIP, and draw on their experience to find ways to assist the performance of the procurement process;

xi. Support the PMU and Procurement Committees –Pokja to ensure that the provisions of the ACAP are fully complied with. The final ACAP will be provided upon the agreement between the World Bank and GOI.



ANNEX 2

Anti- Corruption Action Plan 1. The objective of this WINRIP Anti-Corruption Action Plan (ACAP) is to identify governance risks and mitigation measures beyond the standard control systems employed in the past projects. This Action Plan: (i) maps potential governance risks; and (ii) presents program activities to address these risks in the form of an Action Plan led by the implementing agency (DGH) and supported by the government systems. It also complies with the World Bank Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grant, October 2006. 2. Lessons Learned. The Plan draws lessons from previous road sector projects, namely SRIP and EIRTP 1 and 2, to strengthen and improve the effectiveness of the measures employed to mitigate project related governance risks.

i. The ACAPs in the past projects focused on mitigating collusion risks by directly imposing conditions in the procurement process, such as hiring of a procurement agent (for consultancy services) and procurement advisors (for civil works), and prohibition of pre-qualification to reduce opportunities for bidders to know who will be bidding. In practice, however, many of these conditions impeded the progress of project implementation, while their intended effect was limited. For example, in most of the large bidding cases in Indonesia the bidders know other participants anyway. Thus, prohibition of pre-qualification did not serve its original purpose, while post qualification for large contracts caused serious delays in the evaluation process, along with speculations of biased interpretation of qualifications. In contrast, a well established complaints handling mechanism should be effective against collusion risks since most past collusion cases were whistle-blown by competitors who were not involved in the collusion. Monitoring of this process could in turn be strengthened by more closely tracking signs of manipulation in the submitted bids, e.g., through unit price analysis and review of bid securities by the Core Team Consultant (CTC).

ii. Past experience also indicates that enhanced transparency and oversight can effectively contribute to governance improvements. Greater inclusion of civil society likely enhances project management, and reduces the risk of civil society misunderstanding of the scope and objectives of the project. The project management can also benefit from the civil society as an informed but objective source of information. In recent projects, this has been accomplished by a combination of: (i) sound disclosure policy; (ii) independent oversight, (iii) improved monitoring through an Information Management System; (iv) stringent auditing; and (v) a well established complaints handling mechanism. These measures have improved the transparency of the project implementation and management. It has enhanced civil society interest in these public works, and it has led to a more attentive project management approach by the implementing agency. Good practices and additional oversight, such as the use of Community Representative Observers (CROs) in the bid opening processes and Third Party Monitoring (TPM) during construction, will thus be sustained and used to complement technical and financial audits of the project. Additional efforts, however, need to be made to energize and expand civil society oversight, especially in remote areas, by advertisement and follow-up training. In so doing TPM interests will be enhanced by properly bearing necessary costs and expenses, such as their report production, which was not covered by the project budget before. With these improvements, it is expected that civil society oversight can be made more effective.

3. Action Plan Principles. The following provides principles of the Action Plan:

i. Improved Effectiveness of Procurement Procedures within Ministry of Public Works. Procurement process remains one of the highest governance concerns. Procurement of the



expected 21 contracts will be undertaken by the Ministry of Public Works, either in Jakarta or in the relevant provinces (Medan, Padang, Bengkulu, Lampung). The plan is thus formulated based on the centralized model allowing better monitoring and quality. The following procurement packages are expected:

• 15 ICB and 6 NCB works contracts; • Three consultancy services contracts, including for Core Team Consultant and Design

and Supervision Consultants. • One goods contract.

The Ministry of Public Works will enhance the procurement implementation and monitoring with the following schemes:

• Semi E-tendering on the MPW official public website for both works and consultant services contracts. The official website, www.pu.go.id will publish key information related to WINRIP, including invitation for bids, download of bidding documents, bid clarifications, minutes of bid opening, and information of bid award. The full e-procurement could be used following World Bank’s assessment and no objection. (Notes: Other requirements can be added after no objection from the Bank.)

• Establish criteria for nominating procurement committees. • No rebids: no sub- project is eligible for financing, should there be a need for a rebid

due to corruption and/or collusion.

ii. Enhancement of the MPW IT based National Road Project Monitoring System. Following recommendations of a study on the National Road Monitoring System conducted by the KPK in 2009, DGH agreed to implement a set of DG-wide corruption prevention action plans. The agreement took the form of a formal letter signed by the DG to the KPK, numbered UM.01.11-Db/893 dated November 26, 2009. The action plan comprises 17 areas, grouped into institutional, human resources and processes. The plan was publicly communicated at the end of April 2010, through a seminar supported by the Bank, whereby the DG presented the plan, followed by KPK’s views, and commitment declared by the Vice Minister of Public Works to implement the plan. One of the actions relevant to this ACAP is to enhance the usage of the Ministry’s IT system (Integrated SiPP1) to monitor financial, technical and physical progresses of national road projects through the website. This action is aimed at developing a system to enable project supervision and monitoring which is publicly accessible. Once in place (the IT integration is scheduled to be completed at the end of 2011)2

TOR_CTC_WINRIP_IBRD_Loan.docx

1SiPP or Sistem Pemantauan Proyek (Project Monitoring System) compiles and presents managerial reports such as contract scheduling, payment, and issues reported or complaints generated from projects. In the future the system will be integrated with Simpajatanor Sistem Pengawasan Jalan dan Jembatan (System for Roads and Bridges Monitoring), a system which monitors technical progress, to allow better integration of information for managers and policy makers.

2 The deadline for the submission of proposals was February 24th, 2011 and DGH has received 35 bids and is currently proceeding with the bid evaluation. The Consultant work will be completed by the last quarter of 2011.

, the system will enable the MPW management to better access information on road projects in a timely manner, and information will be available




to external stakeholders. This is expected to significantly improve project managerial performance. This system will also allow civil society organizations (such as academia, media, professional associations) to participate in the monitoring of national road projects.

The IT based integrated monitoring system will be implemented on a pilot basis by selecting two national road projects from every province. MPW has agreed with the Bank to include WINRIP as part of the pilot program. The implementation of aforementioned action plan will be monitored by KPK, following a formal request from DGH seeking KPK’s support in supervising national projects, particularly WINRIP, to identify governance risks, fraud, collusion, coercion or obstruction.

iii. Enhanced Disclosure Provisions and Transparency. MPW will provide necessary information in the PIP, PMM on its website, and in the bidding documents, such as contact point for complaint (mail and email address, phone, fax, text message). The contact will also include the Bank’s Fraud and Corruption Hotline. MPW will hold Annual Accountability Meetings to enhance accountability and project information sharing with civil society. The PMM will provide guidelines on disclosure of information related to the project. MPW official website will display critical information on WINRIP to enhance both internal and external monitoring of the project:

• Work Plan and Procurement Plan. • Quarterly newsletter containing information on the list of contracts, implementation

progress, project related activities, number, types and status of complaints in each location. The newsletter will also be made available to civil society in hard copy and through electronic mailing system.

• Mid-Term Review Report, promptly after completion of the mid-term review implementation support is carried out in accordance with the loan agreement;

• All final audit reports (financial or otherwise, including qualified audit reports) prepared in accordance with the loan agreement and all formal responses of the government in relation to such reports. The publication should be done within one month after the report is accepted as final.

• Contracts awarded with information on general scope of work (with location), value, and summary information of the awarded firms/contractors. The practice in other projects demonstrates that disclosure of contracts awarded will help in reducing fraudulent practices.

iv. Civil Society Participation in Oversight. MPW will actively encourage representatives of civil society groups to attend public bid openings (and sign attendance list at the opening), and other key procurement steps. A contact database will be maintained if interviews are required to acquire better information of some observations. The selection of CRO and TPM in the past projects was based on local interests. The CROs were mostly local university staff, and the TPMs were could be from knowledgeable persons hired by the selected NGO or local university staff as well. The CROs are required to submit a report on their bid process observations, and the TPMs are required to independently monitor the progress of the implementation of each package. The Guidelines on the selection and role of observers will be provided in the PMM, including the past best practice. For example, the past exemplary CRO reports will be referred to for the new CROs. The MPW website will display, for each package, the value of contract awarded, name of contractor, location, scope of contract, and will have regularly updated pictures of works being performed. The web-based reporting system will also generate public voluntary oversight of the project. MPW will arrange meetings with universities, particularly civil engineering faculties, to encourage them to participate in overseeing the national road projects at least through website.

v. Complaints Handling Mechanism. A complaints handling mechanism will be enhanced by the MPW. The mechanism will include provision for recording, referral, and follow up



investigations of substantial complaints by the Inspectorate General, or third party audit to ensure independency and reliability. All complaints received will be acknowledged to the complainant within 7 days of receipt, with a copy to the Bank. Bid-related complaints received during bid evaluation period will be responded after the contract award. Strict procedures to ensure anonymity of informants will be enforced. Tracking of the status of investigations and measures taken will be reported on quarterly basis. Complaints deemed possible serious infringements may be further investigated by the Bank. Through its anti-corruption hotline and complaints which can directly be made online to the Integrity Vice-Presidency (INT).

vi. Sanctions & Remedies. Clear sanctions and remedies are an important final step in the effort to fight against corruption. This Project has zero tolerance for corruption. Any person (government, non-government, consultant, facilitator, contractor etc.) can be sanctioned if sufficient evidence is available. In all procurement and consultant contracts, evidence of corruption, fraud, collusion, coercion and obstruction will result in termination of the relevant contract, possibly with additional penalties imposed (such as fines, blacklisting, etc.) in accordance with the Bank and Government regulations. The Government will exercise its contractual remedies, and the Bank’s disbursement to any given contract can be suspended or stopped completely if cases of fraud and corruption are not dealt with effectively.

4. Corruption Risk Mapping Matrix and Actions. Limiting the governance risks in this project starts with identifying potential risk areas called a corruption risk mapping. The exercise maps the potential governance risks and assesses the corresponding level of risk. Based on the identified risk levels, a set of mitigation actions is formulated. The Corruption Risk Mapping Matrix is presented at the end of this Annex in Table A8.1. The WINRIP ACAP presented in the Corruption Risk Mapping Matrix is based on the above principles and experience in the sector in recent years. The main areas of actions are stated below.

A. Enhanced Disclosure and Transparency B. Enhanced Civil Society Oversight C. Enhanced Complaints Handling Mechanism D. Mitigation of Collusion, Forgery and Fraud Risks E. Sanctions and Remedies



Table A8.1: Corruption Mapping Matrix

Risk Area Level of Risk

Opportunity for weak Governance Mitigation Actions

Enhanced Disclosure and Transparency

Medium

Salient information is not available for both internal and external stakeholders, which hinders effective project monitoring.

1. MPW will provide the contact information for complaints related to WINRIP in the PIP, PMM, MPW website and in the bidding documents.

2. Each work program (WP-1, 2 and 3) and the Procurement Plan will be published on the official website of MPW and made available to the public as a part of the public disclosure policy of the project. The Procurement Plan will be updated annually.

3. MPW will publish a quarterly newsletter on the official website of MPW, including information concerning the list of contracts, implementation progress, project-related workshops and the number, typology and status of complaints. MPW will send the quarterly newsletter to the civil society forum in each project province in hard copy or through an electric mailing system.

4. MPW will make all bidding documents, short-list of consultants and requests for proposals (this provision does not include actual bids and proposals) issued in accordance with the procurement provisions of the loan agreement to any member of public promptly upon request, subject to payment of a reasonable fee for producing bidding documents and request for proposals. Such documents will continue to be made available until a year after completion of the contract entered into for the goods, works or services in question.

5. In line with the World Bank Procurement Guidelines, MPW will publish in Client Connection World Bank, UNDB on-line, dg Market, and on MPW website within two weeks of contract award (after Bank’s no objection) the following information; (a) name of each bidder who submitted a bid; (b) bid prices as read out at the bid opening; (c) name and evaluated prices of each bid; (d) name of bidders whose bids were rejected and the reasons for rejection; and (e) name of the winning bidders and the prices, as well as the duration and summary scope of the contract awarded. MPW will also make available, promptly upon request by any person or company, a list of all contracts awarded in the three months preceding the date of such request, including the name of the contractor/ supplier/ consultant, the contract amount, the number of bidders/proposals, the procurement method and the purpose of the contract.

6. MPW will make publicly available promptly after receipt of all final audit reports (financial or otherwise, including qualified audit reports) prepared in accordance with the loan agreement and all formal responses of the government in relation to such reports. MPW will also post this on the MPW official website within one month after the report is accepted as final.

7. MPW will monitor financial, technical and physical progress of the project by an IT system (integrated SiPP) as publicly accessible project monitoring system.






Enhanced Civil Society Oversight

Medium Lack of external oversight leads to less demand for project accountability.

8. MPW will actively encourage representatives of civil society groups to attend the public bid openings and other key procurement steps. Community Representative Observers (CROs) will be invited from local universities or other selected independent institutions, and will sign the attendance list for the procurement/selection process. Guidelines on appropriate procedures will be provided in the PMM.

9. MPW will establish a Third Party Monitoring (TPM) mechanism whereby the media and civil society groups can become involved in monitoring the progress of the project. This mechanism will include regular sharing of information with the media.

10. MPW will hold Annual Accountability Meetings to enhance accountability and sharing of project information. The first of these meetings will be held at the province level before procurement of contractors or service providers, so that any civil society and community representatives can be selected in a transparent manner. The agenda of each meeting will be widely distributed among interest parties.

Enhanced Complaints Handling Mechanism

Medium

Issues are not reported, complaints are not addressed, and fears of recriminations for reporting corrupt or fraudulent conduct leads to discourage complaint.

11. An enhanced complaints handling mechanism, which includes maintaining project complaint log and filing to monitor status of follow-up of each complaint, will be established by the MPW. This mechanism will include provision for follow up investigations of substantial complaints by the Inspectorate General or third party audit to ensure independence and reliability of the system.

a. All complaints received will be acknowledged to the complainant by the Project Implementation Unit (PIU) within seven (7) days of receipt with a copy to PMU, DGH and the World Bank. Bid-related complaints received during bid evaluation period will be responded after the contract award.

b. All complaints handling component will be included in the MPW website, and will be updated on a monthly basis.

c. The information concerning the alternative conduits for complaints (telephone hotline, dedicated email address and PO Box) will be widely disseminated.

d. Strict procedures to ensure anonymity of informants will be enforced whenever necessary. e. Recording and appropriate referral of all incoming complaints will be undertaken by MPW with

each case generating an automatic, standard format report to the Bank.

Complaints which are deemed possible serious infringements may be subject to further investigation by the Bank.






Mitigating Collusion, Forgery and Fraud Risks

High

Based on past experience, there are high risks of collusion, kickbacks and bribes, overpayment and poor delivery of contracts.

12. MPW will use the “E-Procurement” on the MPW official public website for both works and consultant services. The official website (www.pu.go.id) will publish key information related to WINRIP which includes; (a) invitation for bids; (b) download of bidding documents; (c) bid clarifications; (d) minutes of bid opening; (e) information of contract award. Other requirements can be added after no objection from the Bank.

13. All specifications will be defined in the bidding documents, and all clarifications will be sought through written correspondence and replies will be sent to all bidders.

14. MPW, through CTC, will analyze key indicators of submitted bids to track unreasonable unit pricing and indication of collusion, and prepare a short technical report for each group of bidding (the bidding packages simultaneously invited) and share it with the Bank.

15. Contracts will be awarded within original bid validity period. Any extension of bid validity period from the second extension or cumulatively greater than four (4) weeks will require Bank’s no objection. The Bank will not provide no objection to any extension beyond eight weeks.

16. Guidelines for preparation of specifications/selection criteria in the bidding documents and request for proposals will be prepared to ensure compliance with the Bank Guidelines.

17. MPW will use FIDIC arrangements with the independent supervision consultant having responsibility as the “Engineer” in the works contracts.

18. MPW will establish criteria for nominating procurement committees. Each Project Implementation Unit will include a specified procurement officer and financial management officer.

19. MPW will establish procedures to maintain proper project and procurement filing, including filing of advertisements, bidding documents/request for proposals, clarifications/addenda to bidding document/request for proposals, minutes of bid opening, evaluation reports, contract award and final contract documents, and also for regular review of accounting reports, including all supporting documents (i.e. travel report, receipts, etc.).

20. MPW will conduct regular interim audits by third parties, which will include review of procurement process and results.

Sanctions and Remedies Medium

Weak Sanctions and Remedies does not prevent future corruption

21. MPW will establish the remedial actions and sanctions for cases of fraud and corruption that are reported and for which evidence is found. This will include sanctions to staff proven to be involved in such cases.

22. In all project contracts, evidence of fraud, corruption, collusion and coercive practices will result in termination of the relevant contract, possibly with additional penalties imposed, such as fines, blacklisting, etc. in accordance with Bank and/or Government regulations, and may result in







suspension of disbursement of funds with respect to such contract. Any entity which is found to have misused funds may be excluded from subsequent funding. Information regarding such cases, where lessons are learned and funds are retrieved, will be widely disseminated.

23. Disbursement to any given contract/location can be suspended or stopped completely if cases of corruption are not dealt with effectively.


WINRIP CTC TOR Annexes