IndII Industry Briefing

1. IndII Industry Briefing 14 March 2013

2. Agenda Overview and Introduction (David Ray) General Issues – Procurement (Jeff Morgan) General Issues – Contract Management (Jeff Morgan) Program Overview – Transport (John Lee) Program Overview – Water and Sanitation (Jim Coucouvinis) Program Overview – Policy and Investment (Lynton Ulrich)

3. Overview and Introduction 2012: relatively quiet in terms of procurement • Focus on planningand design • IndII Board meeting – late 2012. IndII required to leave $10 mill space for allocation post June 2013 • 2013: much more activity on the procurement front • Of a total TA budget of $67 million approx. $20 mill already contracted by Feb 2013, with approximately $30 - 35 mill new contracts to be issued by the second/third quarter of 2013. • Forward program, key highlights: • TA for roll out of existing grant programs: Water Hibah, sAIIGs • Design and development of new grant programs: PRIM, IURSP, CBO water, City sewerage investment • Large project preparation activities: Solid waste, waste water, PDAM support and possibly a major port • Re-engagement in national roads (policy, planning and delivery) • Many smaller, but highly strategic TA activities: WSSI, NTB/NTT Water Governance, Road Safety, Aviation, Jakarta urban transport • Knowledge sector: AIIRA and IIIDE • PPPs as an alternative procurement modality

4. Introduction (cont’d) Expectations management re activity approvals IndII governance process requires 3 layers of approvals for activities: • Board approval of FRPD (Facility Review and Planning Document). 6 monthly review providing broad program guidance and direction • Technical Team approval. GOI approval of activities at the concept stage • Activity Design approval. Detailed program design required for final AusAID funding approval. This latter stage of the approval requires the most time and effort.

5. General Issues – Procurement Procurement categories • Direct engagement - <$125,000 • Select tender <$500,000 • Open tender typically >$500,000 Follow requirements of EOI / RFT • Common problem – excessive number of pages, adhering to requirements

6. General Issues – Contract Management Style / formatting of deliverables, follow contract, use style guide Timeliness of deliverables Invoicing – follow contract, accurate Adviser Performance Assessment– continued late submission of deliverables, poor invoicing practices = negative assessment Messaging and communications

7. Program Overview – Water and Sanitation Water Supply Output based water hibah grant ($90 million) Grants for community water systems Watsan sector governance Water and sanitation service index (WSSI) NTB/NTT water governance program Wastewater sAIIGs – grants for neighbourhood sewerage EIAs/DEDs for wastewater (3 cities) Sewerage investment (1 city) Solid waste FS for SW facilities (2 cities)

8. Water Supply Water Hibah - $90 million in Grant program Baseline and verification Consultants – 2 Packages east and west regions approximately $1.8 million each (bids closed) Impact evaluation of water hibah – (Second semester 2013). Community Based Organisations – Water Supply Preparation Support – Select Tender $120,000 Q3 2014 Implementation support - $700,000 - $1,500,000, Q1 2014

9. Watsan Sector Governance Water and Sanitation Service Index Pilot implementation in 12 local governments – current Roll out in approximately 100 local governments – Open Tender Q3/Q4 2013; $500,000 Water Governance Program Preparation of Stage 2 – Second Semester 2013, Consultant Pool $115,000 Implementation Support – Q4 2013, $700,000 open tender.

10. Wastewater Australia Indonesia Infrastructure Grants for Sanitation – sAIIG Preparation, Appraisal and Oversight Consultant – 2 packages each $1,600,000 – out to tender Baseline Consultant – 2 packages $700,000 each – EOI completed, tender in March 2013 Verification Consultant – One package $800,000, April 2013. Capacity Building for sAIIG - $594,000, Q3 2013. Sewerage Detailed Design and Procurement Documents 3 cities, $1,500,000 each; March 2013. Palembang, Cimahi, and Makassar Social and Environmental Safeguards Wastewater 3 cities including Land Acquisition and Resettlement plans, March 2013 one package $900,000

11. Wastewater / Solid Waste City Sewerage Grant – Construction Management One package, $2,000,000, Q4 2013. Contract novation provisions post IndII may apply. Solid Waste Feasibility Studies 2 Cities – Support WB Loan $100 million Feasibility studies for upgrading Municipal solid waste disposal facilities – Manado and DI Yogyakarta (Sleman & Bantul) - $900,000

12. Other External Funding in WSS Water Supply 2nd Pamsimas – very limited T/A input from loan – Procurement by DGHS. USAID – IUWASH, approx. $40 mill program but small T/A components. WSP – Parallel inputs to our CBO program and steady trickle of other T/As. Sewerage ADB $120 million loan for second MSMIP. Technical assistance for Capacity development and implementation oversight – procured by DGHS. JICA – South Central Jakarta Sewerage. $240 million, expected loan in 2013, announcements 2014. Solid Waste World Bang Solid Waste Improvement Program. Project implementation support, Capacity Building, Facility operation contracts.

13. Program Overview - Transport Multi-Modal Connectivity • Policy & strategic advice to key transport ministries • Corridor-based inter/multi-modal transport planning • National and sub-national Urban Mobility & Congestion Relief • Policy and strategic advice to MoT and DKI Jakarta • Practical projects in urban corridors/networks • BRT (TransJakarta) in Jakarta • Public transport infrastructure in secondary urban corridors Life-Cycle Delivery • Transition from input-based delivery to life-cycle, output-based approach • Alternative risk transfer and service delivery options Safety • Black-spot treatments and EINRIP Road Safety Audits • Safety components in integrated corridor solutions supported by IndII grants • Institutional capacity-building: police, DGH, DGAC, DGLT, DGR, DGST

14. Multi-Modal Connectivity Policy and strategic planning advice • Support for MoT and MPW through advisory units • Outputs: Policy papers and briefings; RENSTRA assistance; institutional strengthening; knowledge-sharing • Opportunities: None at this stage; RENSTRA advice will generate new opportunities Multimodal corridor strategy • North Java Corridor Multimodal Transport Study • Outputs: policies/investments to optimize the roles of the respective modes • Opportunities: Follow-up to scoping study ($0.08m); later additions possible ($0.3m budgeted) Sectoral planning • RENSTRA assistance in DGH, DGST; port master-planning • Outputs: Road corridor priorities; port MP/Pre-FS/PP business case • Opportunities: National Roads Policy ($0.4m) & Planning ($3.2m) (EOI/RFT issued); Makassar New Port MP/pre-FS/PPP business case ($0.85m) Multi-modal connectivity at the sub-national level • Integrated corridor solutions • Outputs: Pilot programs for AIIG grant funding • Opportunity: See Safety (IURSP under preparation)

15. Urban Mobility & Congestion Relief Policy and strategic planning advice • Support for MoT and DKI Jakarta through advisory units • Outputs: Policy briefing notes; assistance with RENSTRA; institutional strengthening; knowledge sharing • Opportunity: None at this stage, but some will emerge from RENSTRA and institutional proposals Jakarta (with World Bank) • Management and operational assistance to TransJakarta; policy/planning advice to DKI Jakarta • Outputs: improved TransJakarta performance; integration of urban transport policies and strategies; dissemination of best practice; BRT infrastructure project/s suitable for World Bank support • Opportunities: Spin-off activities for DKI likely (ITS, ERP etc); TransJakarta investment program (will become clearer mid-2013) Other cities • Integrated corridor solutions • Outputs: Pilot programs for AIIG grant funding • Opportunity: See Safety (IURSP under preparation)

16. Life-Cycle Delivery Institutional capacity-building • DGH: Support for BIPRAN, BINTEK and selected balai units • Outputs: corridor plans, asset management tools, capacity-building, training • RTTFs: strengthened role as arm’s-length reviewer of performance (PRIM) • DGST: Support for port administrations • Opportunities: Upgrading DGH standards/manuals (Bintek); PRIM (see below) Program implementation • DGH: long-life designs; strengthened asset management by balai units • Outputs: upgraded standards, performance-based contracts • Opportunity: National Roads program delivery ($3.0m initially, likely more later) • DGST: preparation of PPP projects in selected ports • Outputs: PPP procurement strategy and transaction plan/s • Opportunity: Makassar New Port MP/pre-FS/PPP business case ($0.85m initially, with PPP transaction to follow)

17. Life-Cycle Delivery (continued) Alternative delivery model/s • DGH: appropriate risk transfer; life-cycle delivery by private sector • Outputs: pilot project in life-cycle delivery with private finance • Opportunity: Possible pilot project arising from National Roads Policy/Planning (PPP/PFI/PBC component) Life-cycle management at the sub-national level • Provincial Road Improvement & Maintenance (PRIM) program • Pilot program (in NTB) in strengthening road maintenance with grant support on satisfactory performance • Outputs: better quality roads, replicable model for expansion to other provinces and kabupatens • Opportunity: PMC in DGH, PIUC in NTB (consultants shortlisted); possible later expansion in NTB and other provinces

18. Safety Road Safety • DGH: RSEU Business Plan; black-spot program; EINRIP RSAs • Possible opportunity: Strengthening of RSEU (DGH); institutionalization of iRAP assessments • INTP: crash investigations and speed control; twinning with VicPol • DGLT: safety components under Integrated Urban Road Safety Program (IURSP) • Corridor-based integration of bus shelters, pedestrian facilities, traffic management and road safety improvements, with grant support for satisfactory performance • Opportunity: IURSP program preparation & implementation (±$1-2m), subject to concept approval Railway Safety • DGR: scoping study for railway safety regulation • Possible opportunity: Rail Safety Master Plan Aviation Safety • DGAC: Concept of Operations/Traffic Capacity • Opportunity: Airspace CONOPS study

19. Program Overview – Policy and Investment Focus on activities related to infrastructure finance and cross-sectoral in nature or cover activities from other sectors. Object of P&I is for increased investment in infrastructure service delivery through improvement in GOI systems and processes. Activities for 2013 • Financial and governance reforms in selected PDAMs Stage 4 (in procurement) • Completion of PDAM reform Stage 3 • Completion of MPW Audit Module 1 • Gas Master Plan Development • Small scale water supply PPP support • Knowledge sector activities

20. Activities for 2013 • Financial and governance reforms in selected PDAMs Stage 4 • 6 to 9 “healthy” PDAMS to be selected. • Prepare Business and Good Governance Plans. • Source commercial loans under Perpres 29/2009. • Obtain MoF agreement. • Opportunities - Non at the moment. Subject to a selective tender process following EOI evaluation. • Completion of PDAM reform Stage 3 • Completion of Business and Good Governance Plans for 7 “unhealthy” PDAMs. • Obtain MoF approval. • Contracts already awarded. • Completion of MPW Audit Module 1 • Completion of Action Plans for IACM progress to level 3, Anti-corruption, Procurement, IT development and change management. • Package for another donor. • Contract already awarded.

21. Activities for 2013 • Gas Master Plan Development • Completion of 10 Policy Notes. • Completion of Final Report. • Contract already awarded. • Small scale water supply PPP support • Finalise project selection. • Development of follow–on activity with other donors. • Opportunities – subject to follow-on development. • Knowledge sector activities • Australia-Indonesia Infrastructure Research Awards (AIIRA) program. • Feasibility Study for the establishment of The Indonesian Institute for Infrastructure Development Effectiveness (3IDE). • Opportunities (3IDE) - None at the moment. Subject to a selective tender process following EOI evaluation.