ASIAN DEVELOPMENT BANK PCR: INO 24333
PROJECT COMPLETION REPORT
OF THE
HIGHER EDUCATION PROJECT (Loan 1253-INO)
IN
INDONESIA
December 2001 CURRENCY EQUIVALENTS Currency Unit – Rupiah (Rp)
At Appraisal At Project Completion (May 1993) (30 June 2000)
$1.00 Rp2,091 Rp9,685 Rp1.00 $0.000478 $0.000103
ABBREVIATIONS
ADB – Asian Development Bank BAPPENAS – Badan Perencanaan dan Pembangunan Nasional (National Development Planning Agency of Indonesia) BIOTROP – Southeast Asian Regional Center for Tropical Biology BME – benefit monitoring and evaluation CPIU – central project implementation unit DGHE – Directorate General of Higher Education FKIP – Fakultas Keguruan dan Ilmu Pendidikan (Faculty of Teacher Training) ITS – Sepuluh Nopember Technological Institute, Surabaya, East Java LPIU – local project implementation unit O&M – operation and maintenance PSC – project steering committee S-1 – Strata 1 (bachelor degree) S-2 – Strata 2 (masters degree) S-3 – Strata 3 (doctorate degree) UNCEN Jayapura – University of Cenderawasih UNDANA – University of Nusa Cendana UNEJ – University of Jember UNHALU – University of Haluoleo UNIB – University of Bengkulu UNJA – University of Jambi UNRAM – University of Mataram UNSOED – University of Jenderal Soedirman UNTAD – University of Tadulako
NOTES (i) The fiscal year (FY) of the Government ends on 31 March. (ii) In this report, "$" refers to the US dollar. (iii) The school year in Indonesia starts in September and ends in June of the following year.
CONTENTS
Page
BASIC DATA ii
MAP viii
I. PROJECT DESCRIPTION 1
II. EVALUATION OF IMPLEMENTATION
A. Project Components 4 B. Implementation Arrangements 8 C. Project Costs and Financing 8 D. Project Implementation Schedule 9 E. Engagement of Consultants and Procurement of Goods and Services 9 F. Performance of Consultants, Contractors and Suppliers 9 G. Conditions and Covenants 10 H. Disbursements 10 I. Environmental Impact 10 J. Performance of the Borrower and the Executing Agency 10 K. Performance of the Asian Development Bank 11
III. EVALUATION OF INITIAL PERFORMANCE AND BENEFITS
A. Financial and Economic Performance 11 B. Attainment of Benefits 11
IV. CONCLUSIONS AND RECOMMENDATIONS
A. Conclusions 13 B. Recommendations 13 C. Lessons Learned 14
APPENDIXES 16
i i
BASIC DATA
A. Loan Identification
1. Country Indonesia 2. Loan Number 1253-INO 3. Project Title Higher Education Project 4. Borrower Republic of Indonesia 5. Executing Agency Directorate General of Higher Education 6. Amount of Loan $140.0 million (OCR) 7. PCR Number PCR:INO 668
B. Loan Data
1. Appraisal - Date Started 29 April 1993 - Date Completed 21 May 1993
2. Loan Negotiations - Date Started 16 August 1993 - Date Completed 20 August 1993
3. Date of Board Approval 21 September 1993
4. Date of Loan Agreement 02 March 1994
5. Date of Loan Effectiveness - In Loan Agreement 29 April 1994 - Actual 29 April 1994 - Number of Extensions Nil
6. Closing Date - In Loan Agreement 30 April 2000 - Actual 30 April 2000 - Number of Extensions Nil
7. Terms of Loan - Interest Rate Pool-based variable lending - Maturity 26 years - Grace Period 6 years - Commitment Charge 0.75 percent per annum
8. Disbursements
a. Dates
Initial Disbursement Final Disbursement Time Interval
1 June 1994 15 January 2001 6.5 years
Effective Date Original Closing Date Time Interval
29 April 1994 30 April 2000 6 years
iii
b. Amounts
Original Last Revised Amount Net Amount Category Allocation Allocation Cancelled Disbursed
1A. C/W-rehabilitation 726,000 251,490 474,510 251,490
1B. C/W-Construction 8,245,000 6,246,201 1,998,799 6,246,201
1C. C/W-Design & Supervision 574,000 422,994 151,006 422,994
02A. Equipment 33,563,000 31,867,542 1,695,458 31,867,542
02B. Library Materials 2,693,000 2,645,414 47,586 2,645,414
02C. Furniture & Service Equipment 1,174,000 130,784 1,043,216 130,784
03A. Specialist Services-Project 3,718,000 1,707,353 2,010,647 1,707,353 Consultants
03B. Specialist Services-Academic 6,434,000 3,307,679 3,126,321 3,307,679 Advisors
03C. Specialist Services-Student 407,000 277,366 129,634 277,366 Support Experts
03D. Specialist Services-Training Inputs 2,873,000 1,341,492 1,531,508 1,341,492 & Visiting Fellows
03E. Specialist Services-Training inputs 3,422,000 1,781,057 1,640,943 1,781,057 & Technical Specialists
03F. Specialist Services-Language 3,752,000 3,055,386 696,614 3,055,386 Specialists
04B. Staff Development –Overseas 20,419,000 19,748,090 670,910 19,748,090 Fellowships
04C. Staff Development – Overseas 3,186,000 2,609,691 576,309 2,609,691 Short Term Training
05G. Staff Development – In-Country 2,559,000 1,574,451 984,549 1,574,451 Fellowships
05H. Special Programs- Student Support Program & Science 4,447,000 5,127,045 (680,045) 5,127,045 Scholarships
05I. Special Programs-Research & 3,379,000 2,197,256 1,181,744 2,197,256 Networking
06. Interest During Constructions 26,467,000 18,292,752 8,174,248 18,292,752
07. Unallocated 11,962,000 0 (11,962,000) 0
Total 140,000,000 102,584,043 37,415,957 102,584,043
iv
9. Local Costs Financed ADB-Financed
- Amount (US$) 10,888,941 - Percentage of Local Costs 59 - Percentage of Total Cost 10.6
C. Project Data
1. Project Cost ($ million)
Cost Appraisal Actual Estimate
Foreign Exchange Cost 121.7 91.7 Local Currency Cost 113.3 70.2
Total Cost 235.0 161.9
2. Financing Plan ($ million)
Appraisal Estimate Actual . Source Foreign Local Total Foreign Local Total
Borrower-financed 0.0 95.0 95.0 0.0 59.3 59.3 * Bank-financed 148.2 18.3 166.5 110.0 10.9 120.9 Total Cost 148.2 113.3 383.2 110.0 70.2 180.2
* The calculation is based on the exchange rate to the dollar of each fiscal year.
v
3. Cost Breakdown by Project Components ($ million)
Appraisal Estimate Actual Component Foreign Local Total Foreign Local Total
(a) Civil Works - Rehabilitation 0.73 2.18 2.90 0.25 0.75 1.00 - Construction 8.25 24.74 32.98 6.25 18.74 24.99 - Design & Supervision 0.57 1.72 2.30 0.42 1.27 1.69
(b) - Equipment 33.56 8.39 41.95 31.87 0.00 31.87 - Library Materials 2.69 1.15 3.85 2.65 0.00 2.65 - Furniture & Service Equipment 1.17 3.52 4.70 0.13 0.39 0.52
(c) Specialists Services - Project Consultants 2.18 1.35 3.53 1.27 0.44 1.71 - Academic Advisors 4.32 1.85 6.17 2.41 0.90 3.31 - Student Supp. Experts 0.22 0.16 0.38 0.28 0.00 0.28 - Visiting Fellows 1.47 1.23 2.70 0.99 0.35 1.34 - Technical Specialists 1.94 1.30 3.24 1.30 0.48 1.78 - Language Specialists 2.52 1.08 3.60 2.94 0.12 3.06
(d) Overseas Staff Development - Fellowships 2.04 0.00 2.04 19.20 0.55 19.75 - Short Term Training 3.19 0.17 3.35 2.61 0.14 2.75
(e) In-Country Staff Development - Fellowships 0.00 4.49 4.49 0.14 1.43 3.14
(f) Special Programs -Student Support & Scholarships 0.00 3.90 3.90 0.57 4.56 5.13 -Research & Networking 0.00 2.96 2.96 0.22 1.98 2.20
(f) Project Implementation Costs 0.00 12.93 12.93 0.00 24.37 24.37
(g) Taxes 0.00 11.98 11.98 0.00 12.72 12.72
(h) Interest During Construction 26.47 0.00 26.47 18.29 0.00 18.29
(i) Unallocated 11.96 0.00 11.96 0.00 0.00 0.00
TOTAL 121.70 113.30 235.00 91.70 70.20 161.90
vi
4. Project Schedule
Item Appraisal Actual Estimate
(a) Date of contract with Consultants III Qtr. 94 III Qtr. 96
(b) Civil Works Contract Date of Award II Qtr. 95 IV Qtr. 95 Completion of Work III Qtr. 99 I Qtr. 00
(c) Equipment and Supplies Dates First Procurement II Qtr. 95 I Qtr. 96 Last Procurement II Qtr. 99 I Qtr. 00 Completion of equipment Installations & operations III Qtr. 99 I Qtr. 00
(d) Staff Development In-Country-First Contract IV Qtr. 94 IV Qtr. 94 Overseas-First Contract II Qtr. 95 III Qtr. 94 Completion of Activities I Qtr. 00 IV Qtr. 00
(e) Special Programs First Research & Networking IV Qtr. 95 III Qtr. 95 First Student Support IV Qtr. 95 I Qtr. 97 Completion of activities I Qtr. 00 I Qtr. 00
D. Data on Bank Missions ______No. of No. of Specialization Name of Mission Dates Persons Person-days of Members a ______
Fact-finding 11 Feb – 4 March 1993 4 84 e, h, j, m Appraisal 29 Apr – 21 May 1993 5 100 e, h, j Inception 12-20 Jan 1994 1 8 e Review-1 29 Feb – 6 Mar 1996 1 6 e Review-2 25 Oct – 22 Nov 1996 2 15 o, p Mid-term Review 21 Mar – 17 Apr 1997 2 28 o, p Review-3 29 Sep – 20 Oct 1997 2 14 o, p Review-4 25 May – 11 Jun 1998 2 12 o, p Review-5 5 – 16 Nov 1998 2 12 o, p Review-6 26 Apr – 21 May 1999 2 15 o, p Disbursement 23-24 Jul 1999 2 4 n, p Review-7 8 – 19 Nov 1999 2 10 o, p Disbursement 21 Feb2000 3 3 g, o, p Project Completion b 2 May – 12 June 2001 3 75 j, o, p
Total 33 386 ______a a- manager, b- project specialist, c- financial analyst, d- counsel, e- economist, f- procurement specialist, g- control officer, h- programs officer, i- education specialist, j- consultant, k- young professional;l- assistant project analyst, m- project engineer, n-loan clerk, o- project impl. officer, p- project officer. b The Mission comprised of S.A.Chowdhury, Sr. Sector Specialist; D.Prijomustiko, Project Officer; and John Weidman, Staff Consultant.
vii
E. Related Loans
For the same Executing Agency: (Directorate General of Higher Education)
Date of Amount Loan No. Project Title Approval ($ million)
244-INO Surabaya Institute of Technology 17 Dec 1975 14.5 402-INO University of Hasanuddin 21 Jun 1979 26.0 525-INO University of North Sumatra 24 Sep 1981 50.0 737-INO University of Sriwijaya 7 Jun 1985 37.9 984-INO/ 985-INO(SF) Marine Sciences Education 4 Nov 1988 73.3
1013-INO Six Universities Development and Rehabilitation 8 Mar 1990 114.0 1432-INO Engineering Education Development 6Feb 1996 102.0 1792-INO Technological and Professional Skills Development 29 Nov 2000 180.0
I. PROJECT DESCRIPTION
1. After analyzing the issues of Indonesia's higher education system,1 the Government and the Asian Development Bank (ADB) agreed that, to increase efficiency and help develop higher education, the proposed Project would (i) emphasize the development of weaker regional universities, (ii) promote networking among institutions and improve the linkages between institutions and the community at large, and (iii) strengthen higher education management and enhance beneficiary financing of higher education through direct cost recovery and other resource mobilization means.
2. Improving the quality and relevance of existing regional universities is a cost-effective means to increase the efficiency of the higher education system. Such improvement was to (i) help reduce the regional disparities in access to and quality of higher education up to the undergraduate bachelor’s degree (S-1) level, and (ii) improve internal and external efficiencies of less-developed public institutions in remote provinces. Universities operating at high levels of efficiency can produce strong returns on the investment of routine and development budgets. Thus, emphasis was placed on consolidation, rehabilitation, and strengthening rather than expansion. Because national development goals for higher education include improving the supply of graduates with knowledge and skills to contribute to regional/national development, regional universities should emphasize their relevance to regional development. Such improvement in university education will better equip the graduates to gain employment and contribute to regional development.
3. These strategies imply the need to upgrade regional public universities, increasing their ability to serve local needs through selective improvements of facilities, educational content and methodology, and staff. Such upgrading will give students access to good regional universities and save them the higher costs of education at major urban centers. In addition, their increased suitability for available local employment opportunities will increase their chances of staying in their regions.
4. Nine public universities were selected for the Project because they needed development of their teaching staff, facilities, management, linkage with other institutions and the local economy, and internal and external efficiencies (para. 9). The catchment areas of these universities had less access to higher education than was needed by their populations. The institutions typically showed a strong tendency to view themselves only in the context of the structure and hierarchy of the public university system and paid little attention to the needs of their regions. Efforts were to be made, through project formulation and implementation, to establish a clear understanding of the thrust of the major policy change, which required public universities to be more concerned about their clientele, as in the case of private institutions (footnote 1, paras. 30-33).
5. The Government and ADB agreed on the concomitant needs to (i) improve the quality of professional and research-oriented skills in specific fields of specialization to meet the development requirements of the country; and (ii) enhance equity and regional development by strengthening selected departments and faculties of regional universities to undertake research and offer high quality education programs at the undergraduate level in selected specializations of particular regional importance in agriculture, engineering, and management. Instruction in the basic science foundations of these fields and in the education of science teachers was also to
1 Loan 1253-INO: Higher Education Project, for $140 million, approved on 21 September 1993, Appendix A. 2 be strengthened. The Project was, therefore, designed to help the Government improve the quality and supply of professional and research-oriented skills in specific fields of specialization to meet national development priorities, while enhancing equity and regional development. The three basic components of the Project were (i) regional university development, to strengthen the capacity of selected less- developed universities; (ii) university networking, to reduce the insularity of universities; and (iii) higher education management, to strengthen management at central and institutional levels leading to improved internal and external efficiency.
6. Nine regional public universities were targeted for improvements in internal and external efficiency as well as quality of education and management: (i) Universitas Bengkulu (UNIB), (ii) Universitas Jambi (UNJA), (iii) University Jenderal Soedirman (UNSOED), (iv) Universitas Jember (UNEJ), (v) Universitas Tadulako (UNTAD), (vi) Universitas Haluoleo (UNHALU), (vii) Universitas Mataram (UNRAM), (viii) Universitas Nusa Cendana (UNDANA), and (ix) Universitas Cendrawasih (UNCEN: Jayapura and Manokwari campuses).1
7. Further, two developed institutions were selected to serve as resource centers for the nine universities. Their capacities as regional growth centers were to be strengthened through the provision of resources designed to enhance linkages among project universities. They were also to provide undergraduate and postgraduate training opportunities for students and academic staff in the nine universities. The resource universities were (i) Institut Teknologi Sepuluh Nopember, Surabaya (ITS), and (ii) Southeast Asian Regional Center for Tropical Biology (BIOTROP).
8. Twenty-two private universities near the project institutions were also to receive assistance in fellowships and training for academic and administrative staff, and a limited amount of equipment needed for enhancing institutional management and linkage activity. These private universities included those adjacent to (i) Universitas Bengkulu (UNIB): (a) Universitas Prof. Dr. Hazairin S.H. and (b) Akademi Manajemen dan Komputer REMOX, Bengkulu; (ii) Universitas Jambi (UNJA): (a) Universitas Batanghari, and (b) Akademi Sekretari dan Manajemen, Jambi; (iii) Universitas Jenderal Soedirman (UNSOED): (a) Universitas Wijaya Kusuma, and (b) Akademi Manajemen Informatika dan Komputer, Purwokerto; (iv) Universitas Jember (UNEJ): (a) Universitas Muhammadiyah; (b) Universitas Much.Sroedji; and (c) Sekolah Tinggi Ilmu Ekonomi (STIE) Mandala, Jember; (v) Universitas Tadulako (UNTAD): (a) Universitas Al-Khairat; (b) Universitas Muhammadiyah; and (c) Sekolah Tinggi Ilmu Ekonomi (STIE) Panca Bhakti, Palu; (vi) Universitas Haluoleo (UNHALU): (a) Universitas Dayanu Ikhsanuddin, Bau-bau; and (b) Akademi Teknik, Kendari; (vii) Universitas Mataram (UNRAM): (a) Universitas Islam al-Azhar; and (b) Universitas ’45, Mataram;
1 The map (p. viii) shows the location of the project institutions. 3
(viii) Universitas Nusa Cendana (UNDANA): (a) Universitas Muhammadiyah; (b) Universitas Kristen Artha Wacana; and (c) Universitas Katolik Widya Mandira, Kupang; and (ix) Universitas Cendrawasih (UNCEN) Manokwari & Jayapura: (a) Sekolah Tinggi Ilmu Ekonomi (STIE) Ottow and Geissler, and (b) STIE Yapis, Jayapura.
9. At appraisal, it was envisaged that improvements in internal efficiency and quality of education would be achieved by reducing dropout and repetition rates through improved academic programs; upgrading staff qualifications; providing better quality teaching; implementing appropriate academic policies; improving and adding to existing and support facilities; and providing consulting services, instructional materials, furniture, and equipment. Improvements in external efficiency would be achieved by producing more qualified and marketable graduates and by establishing linkages with private sector employers. Student advisory centers were to be established at the project public universities to provide personal, academic, and job counseling as well as job placement services. The management capabilities at the project universities were to be enhanced by improving their administration, planning, and evaluation capacity through provision of equipment, fellowships and training, and consulting services.
10. The capabilities of each public project university as a regional growth center, particularly in providing leadership in education, public service, and research, were to be strengthened as a result of the overall upgrading program to be implemented. The capabilities of the private universities under the Project were to be strengthened primarily through training programs for selected teaching and administrative staff, the provision of computer equipment, and the establishment of closer participatory linkages with the Project’s public university in the region.1
11. These components were to be implemented through the provision of a variety of physical and human resource inputs, including (i) civil works (rehabilitation and new construction); (ii) equipment and materials (equipment for laboratories, library materials, furniture, and service equipment); (iii) staff development (overseas fellowships, short-term training, in-country fellowships, and training); (iv) specialist services and training input (project consultants, academic advisers, student support experts, visiting fellows, technical specialists, and language specialists); and (v) special programs (student support and science scholarships, research, and academic networking).
12. The Directorate General of Higher Education (DGHE) within the Ministry of National Education was the Executing Agency. The DGHE established a central project implementation unit (CPIU) to manage implementation of the Project. A local project implementation unit (LPIU) was established at each university by its rector to manage the day-to-day implementation of the Project. A project steering committee (PSC) was established by DGHE to give policy guidance to the CPIU. The committee was chaired by the Director General of DGHE and included DGHE directors, representatives of the national planning agency (BAPPENAS) and the Ministry of Finance, a rector from a project university, the CPIU project manager and assistant manager, the team leader of the project consultants, and representative project managers of other higher education projects assisted by bilateral and multilateral agencies (including ADB).
1 This strategy is consistent with ADB’s past support to the higher education sector in Indonesia. 4
II. EVALUATION OF IMPLEMENTATION
13. Narrative summaries of the inputs to each institution are included in Appendix 1; an assessment matrix is included in Appendix 2.
A. Project Components
1. Key Project Inputs by Loan Categories
a. Civil Works
14. The total area in square meters (m2) of new building construction completed for the 11 project institutions was 99,150 m2. In addition, 15,201 m2 of selected facilities were rehabilitated at the project universities. The Indonesian economic crisis of 1998, resulting in a dramatic loss in the value of the rupiah against the United States (US) dollar, also resulted in a corresponding reduction in the costs of construction begun or completed after the crisis. Consequently, while the total area of civil works anticipated at appraisal was completed, the actual cost was only 72.5 percent of that estimated at appraisal (Basic Data). Implementation progressed generally on schedule after the delayed start.
15. While the overall quality of construction observed during the Project Completion Review Mission in May-June of 2001 was acceptable, the situation varies from university to university and from building to building on the same campus. There were noticeable problems at UNHALU with construction and maintenance of the Fisheries Building. During the Review Mission in November of 1999, the problems had still not been addressed, and this was communicated to DGHE. In fact, the Fisheries Building at UNHALU had deteriorated even further, with broken tiles in traffic areas and essentially nonfunctional laboratory rooms. In addition, there were problems with the coverings of floors and work tables in the basic science laboratories constructed at UNHALU. Substandard carpeting had been removed from the floors which were totally bare. Many of the tables had thin plastic coverings that had curled due to chemical spills. (The university management informed the Project Completion Review Mission that remedial action will be completed by the start of the Semester in September of 2001.) Also, a roof of the basic science building at UNIB had collapsed due to an earthquake.
16. At UNDANA, student dormitories constructed with project funds remained unfinished, with no tile on second level floors. Maintenance of bathrooms was poor, including problems with water supply and toilet leakage. Not surprisingly, occupancy of the facilities was only 25 percent. Where the LPIU and university management had closely monitored the implementation of the civil works, the overall quality of civil works was better and implementation smoother than where such involvement was minimal.
b. Equipment, Library Materials and Furniture
17. Delay in the fielding of academic consultants precluded their having meaningful inputs in the preparation of equipment lists and specifications. Because some staff involved in the ordering process lacked technical experience with the requirements, the specifications of some equipment were incomplete. As a result, accessories needed for full operation of the equipment were not always procured. Fortunately, this problem affects only a very small percentage of the equipment, which in general seems to be appropriate to actual instruction and research needs. Some teaching staff who did not participate in staff development activities are still reluctant to 5 use the new, unfamiliar equipment. University management and faculty informed the Project Completion Review Mission that they expect to remedy this problem through appropriately designed in-service training programs.
18. Engineering laboratory equipment initially provided for UNTAD and UNRAM was inadequate. This was rectified using resources from the ADB-funded Engineering Education Development Project.1 Overall, procurement, installation, and use of equipment is satisfactory, but it ranged from very good to acceptable standard, with minor problems at a few institutions.
19. The LPIUs procured fixed and movable furniture through local competitive bidding from suppliers in the region. Fixed furniture was designed to fit a specific need, and movable furniture was of standard design and is of a quality similar to that generally found in public educational institutions. However, in a number of science laboratories plastic laminate was used as table top that didn’t withhold normal use. More appropriate materials could have been used for the laboratory furniture, like plywood and/or metal covering over the plastic laminate, which would withstand normal use for a number of years. To ensure reasonable longevity for furniture procured under the Project, a routine maintenance program needs to be implemented urgently at the universities.
20. Library materials were acquired, cataloged, and stored appropriately in most project institutions and a complete catalogue of all books procured for the 11 institutions is available at the institutions. The selection of materials generally fit institutional needs. The management at UNDANA took a floor of the library building to house a postgraduate study program, thereby somewhat disrupting library operations.
c. Specialist Services for Project Institutions
21. All consultant services were completed at a cost that was only 55.7 percent of the appraisal estimate.2 The primary reason for this cost saving was the use of a significant number of Indonesian consultants who, though holding international qualifications, were paid at local rather than international rates. The cost was also affected by the dramatic decrease in the value of the rupiah against the US dollar.
22. Management and academic staff at the project institutions noted that this was one of the two project components they perceived to have been the most effective (the other was fellowships for staff development). The human resource development aspects of the Project seemed generally to be the most well-received.
23. One problem was an almost two-year delay beyond the appraisal schedule in the engagement and fielding of consultants. This delayed the start of activities linked to the specific inputs of some consultants, especially with respect to selection of equipment for laboratories. In general, the consultants were able to carry out their assignments as envisaged at appraisal in a professional and satisfactory manner. Inputs in the emphasized academic fields related to curriculum development were particularly useful. This included short-term subject matter consultants and visiting professors. Other inputs included project consultants, student support experts, and language specialists. Counterparts from faculties assigned to work with the consultants contributed to this success and benefited from knowledge transfer.
1 Loan 1432-INO: Engineering Education Development Project, for $102 million, approved on 6 July 1996. 2 Basic Data, page iii, Categories 3A, B, C, D, E and F. 6
d. Staff Development
24. At appraisal, the Project provided for 704 fellowships for advanced degree study. These included 576 (319 in-country, 257 overseas) for masters degree (S-2) study and 128 (16 in- country, 112 overseas) for doctoral (S-3) study. At project completion (Appendix 3), 755 academic staff had received fellowships: 595 for masters degrees (312 in-country, 283 overseas) and 160 for doctors degrees (20 in-country, and 140 overseas).
25. The increase in doctor’s degree study awards (13) over the appraisal estimate was made by DGHE in consultation with ADB to allow academically qualified and motivated participants who completed masters degree programs to advance their academic qualifications. By loan closing in April 2000, 537 fellows had successfully completed masters degree programs and 100 had completed doctoral degree programs. Another 112 (58 masters, 54 doctoral) completed their overseas studies between loan closing and June of 2001. Currently, 6 fellows are still studying and are expected to complete their studies by the end of 2001. ADB approved DGHE’s recommendations for fellowship awards that obviously could not be completed by the loan closing date, on the condition that no funds would be paid by the Project after loan closing, and DGHE and the involved universities would be responsible for monitoring the academic progress and financing of these fellows. DGHE’s selection criteria were appropriately used to identify and select the fellows from project institutions. All fellows were drawn from disciplines supported by the Project.
26. Problems with implementing the advance degree fellowship program included (i) difficulty identifying an adequate number of qualified candidates, (ii) requirements for gaining admission into graduate programs at overseas universities, (iii) length of time required by fellows to master a foreign language, and (iv) time required to adjust academically and culturally to the host environment. Despite these difficulties, the fellowship program was successfully implemented. Fellows undertook graduate study programs in 12 ADB member countries.1
27. Returned fellows have been integrated into the work of their faculties. These fellows had been given the opportunity to demonstrate their capabilities in developing curricula, teaching advanced courses, undertaking research, and assuming leadership roles. Fellows expressed appreciation for the opportunity given them for advance degree study, in particular international study. They showed dedication to (i) improving the classroom learning environment and quality of instruction in assigned courses, (ii) helping students bridge the gap between education and work, and (iii) providing leadership in expanding their universities’ role in regional development and community service.
28. However, some fellows were discouraged by the lack of institutional support for new course development and funding of research at their university, which prevent them from applying their acquired knowledge. Some fellows who studied at overseas universities felt that their long absence from the university resulted in career stagnation and financial loss. Upon their return, they found that their peers had made progress in career development, while they were given the same pay grade and academic rank they held before their departure.
29. The short-term training program was generally implemented in accordance with appraisal recommendations, with 559 person-months of overseas and 6,334 person-months of short-term training completed. Mission discussions with participants indicated that the training
1 Australia, Canada, Denmark, France, Germany, Indonesia, Netherlands, New Zealand, Philippines, Thailand, United Kingdom, and United States. 7 received was of high quality and of value in the performance of their jobs. Teaching faculty were provided an opportunity to improve their classroom management and teaching skills, and technicians were able to upgrade their technical skills. Academic staff and university administrators agreed that the short-term training programs were beneficial.
30. Overall, the staff development component of the Project was the one to which both teachers and management of the institutions of higher education responded most enthusiastically. Many academic staff who earned masters degrees expressed their eagerness to pursue doctoral study.
e. Special Programs: Student Support, Research Grants, and Academic Networking
31. Scholarships were awarded to assist 10,894 students to cope with the Indonesian economic crisis, primarily in the 1997/98 and 1998/99 academic years. In addition, 33 of the 51 basic science scholarships for S-1 students were awarded. It was difficult to find students from the project universities who qualified for admission to S-1 programs in more advance institutions, either due to low academic qualifications or unwillingness to leave the region.
32. A total of 1,400 research grants (737 starter and 663 matching) were awarded to academic staff at the project universities. More than 80 percent of the research has been disseminated through local, regional, and international academic networks of researchers. The research grants were selected according to predetermined criteria by the Task Force for Evaluation of Research Proposals established by DGHE. Research results were disseminated mainly through publication in scholarly journals, and presentations at seminars, workshops, and conferences. They were also submitted to the Directorate of Research and Community Services Development under DGHE and the Indonesian Institute of Sciences for cataloging and dissemination.
33. Academic networking included joint seminars for staff from project institutions conducted at both BIOTROP and ITS. An international seminar, “Managing Higher Education in the Third Millennium,” was conducted for representatives from project institutions as well as others in the regional higher education community in October 1999 in Jakarta. This seminar included presentations from a variety of international higher education management experts and its proceedings were published and disseminated. Cooperative research activities among project universities and international partners were expanded greatly.
2. Project Outputs by Logical Framework1
a. Component 1—Regional University Development
34. Curriculum has been developed and better methodologies applied in target disciplines. Teaching and research facilities and resources have been improved. The output of young researchers has been increased, with concomitantly greater contribution to regional development. Several researchers at project institutions have published their results in international journals and a few have received international awards for their research.
1 Appendix 2. 8
b. Component 2—University Networking
i. Subcomponent A: Networking Programs
35. Research and development activities have been achieved through increased academic networking at project institutions. Student advisory centers were established at all project institutions to enhance linkages with potential employers of graduates. Matching grants supported collaborative research, information exchanges and development activities involving national and international academic networks. Visiting professors and overseas fellowships led to expanded international research collaboration.
ii. Subcomponent B: Resource Institutions Development
36. Surabaya Institute of Technology (ITS) has become a strong technology resource center, especially supporting eastern Indonesia. Academic and administrative staff have been upgraded to enhance institutional and professional capacity. New construction and sophisticated equipment has been provided to support research in marine and civil engineering. ITS is building a new facility for information technology with joint private sector funding.
37. South-East Asian Center for Tropical Biology (BIOTROP) has been widely recognized and active as a regional center, having implemented a new masters degree program in management information systems for natural resources management. Several of BIOTROP’s first graduates were on the staff of project universities. The new conference center has also enhanced its capacity to serve as a center for national and international research in tropical biology.
c. Component 3—Higher Education Management
38. Management of project universities, including local private higher education institutions, has improved through staff development, seminars, and other related activities. Benefit monitoring and evaluation has been developed to facilitate the collection and analysis of data for more effective planning, monitoring and management as a model for DGHE. Use of facilities provided by the Project is generally at an acceptable level. Project institutions have developed income generation capacity by selling to community members the services of their computer centers (especially Internet access, but also training) and language resource centers (especially English training) developed with project funds. Students are required to pay nominal fees for internet access.
B. Implementation Arrangements
39. The implementing arrangements devised at appraisal (footnote 1, paras. 72-75) took into account the large scope of project inputs and scattered locations of the participating universities (Map). Greater ownership, authority, and responsibilities could have been given to the assisted faculties, and this would have improved coordination and implementation of project inputs at the universities in the short term and facilitated successful operation of the Project in the long term.
C. Project Costs and Financing
40. At appraisal, the total cost of the Project was estimated at $235 million equivalent (footnote 1, Appendix 6). Of this amount, ADB was to finance $140 million or 60 percent. At completion, the actual total cost of the Project was $161.9 million equivalent, of which ADB 9 financed $102.6 million or 63 percent. The table provides a comparison of the appraisal and actual financing and costs. Details of the appraisal and actual costs, by component, are shown in the Basic Data (page iv).
Appraisal and Actual Financing Plan and Costs ($ million) Appraisal Estimate Actual Source FX % LC % Total % FX % LC % Total %
ADB 121.7 52 18.3 8 140.0 60 91.7 57 10.9 6 102.6 63
Government 0.0 - 95.0 40 95.0 40 0.0 - 59.3 37 59.3 37
Total 121.7 52 113.3 48 235.0 100 91.7 57 70.2 43 161.9 100 - = less than 0.001%, ADB = Asian Development Bank, FX = foreign exchange, LC = local currency. Source: Mission’s estimates.
41. The overall decrease in project cost was due primarily to the economic crisis, which led to a dramatic reduction in the value of the rupiah, from about Rp2,000 to about Rp8,000 to the US dollar during the project period. Consequently, the actual local costs for delivering the level of goods and services anticipated in the appraisal were reduced by 38 percent. Of the loan proceeds, $37.4 million or 27 percent were canceled for similar reasons.
D. Project Implementation Schedule
42. The loan was declared effective on 29 April 1994 and closed on 30 April 2000. At the request of the Borrower, ADB agreed to extend the disbursement schedule by 9.5 months to 14 January 2001 in order to complete final accounting for payments. Project implementation was completed by the loan closing date. The appraisal schedule was somewhat unrealistic in proposing the immediate commencement of major activities without a reasonable preparatory period, and without proper guidance and training to LPIUs in carrying out their responsibilities. Overall, the time estimated to implement each major activity was generally realistic. Appendix 4 shows the actual project implementation schedule versus the appraisal estimate.
E. Engagement of Consultants and Procurement of Goods and Services
43. Consulting services were engaged in accordance with ADB’s Guidelines on the Use of Consultants, and goods financed from the loan proceeds were procured in accordance with ADB’s Guidelines for Procurement. Contracts for civil works and furniture were awarded to prequalified local contractors in general conformity with ADB and Government requirements. DGHE found it necessary to hire consulting firms specializing in management of fellowship programs because of the complex scope of the fellowship program, difficulty in placing fellows in overseas graduate programs, and large number of participants. The engagement of consulting services proved to be a time-consuming process and delayed project activities linked to consultant inputs.
F. Performance of Consultants, Contractors, and Suppliers
44. The universities and CPIU rated the overall performance of the educational consultants as generally satisfactory, though numerous variations to the consultants’ contracts were made to accommodate changes in personnel and timing of their deployment. This affected the availability of counterparts from the targeted faculties at the universities and domestic consulting firms. As a result, some consultant inputs were not synchronized with actual need, for example, preparation of equipment lists and specifications, and training in the use and maintenance of 10 new laboratory equipment. Securing uninterrupted services from domestic academic consultants was a problem due to their obligations to other jobs. The performance of the consulting firms engaged for the fellowship program was generally satisfactory. The performance of the domestic engineering firms engaged by LPIUs to design the civil works program was considered satisfactory. This assessment is, however, questionable in view of problems with supply of water and electricity in the new buildings at some universities. Despite the use of a standard unit cost used by the contractors in bid preparation, there is considerable difference between the universities in the design and quality of the completed buildings.
45. Equipment procured from international and local suppliers was delivered on schedule and in accordance with specifications. Local representatives of foreign suppliers were not uniformly able to provide help to operate and maintain the equipment supplied.
G. Conditions and Covenants
46. The Borrower was generally able to comply with stipulations in the loan covenants (Appendix 5). While some loan covenants were overtaken by the economic and financial crisis of 1997 and 1998 (e.g., the student loan program and cost recovery measures), some major covenants were fulfilled, such as the establishment of the National Accreditation Agency for Higher Education in December 1994 and benefit monitoring and evaluation. Most of the project universities have a functioning student advisory center, though there is variability in services and physical location to maximize accessibility across the campuses. In view of the country’s lingering economic crisis, any increase in student tuition to offset higher operating costs of public universities is unlikely now and in the immediate future. Adequate budget allocations for the operation and maintenance (O&M) of the new facilities under the Project must be accorded a higher priority than is currently assigned within a university’s budget.
H. Disbursements
47. Loan proceeds were withdrawn in accordance with ADB’s disbursement procedures. Throughout project implementation, however, disbursements lagged behind the appraisal projections. ADB made the last disbursement from the loan on 15 January 2001 (Appendix 6).
I. Environmental Impact
48. Any adverse environmental impact of the Project was kept to a minimum as site development for new buildings was carried out on existing campuses. The environmental precautions stipulated at appraisal (footnote 1, paras 94-95) were implemented as envisaged. Additionally, a significant number of research studies financed under the Project will contribute to environmental preservation. While the overall project impact is satisfactory, problems at a few of the campuses, e.g, the supply of water to some of the new buildings is inadequate to effectively operate basic science laboratories, and inadequate routine maintenance has resulted in premature aging of some buildings.
J. Performance of the Borrower and the Executing Agency
49. The performance of the Borrower was satisfactory in all areas of designated responsibility, with the exception of monitoring compliance with loan covenants and project management. It was assumed at appraisal that project implementation would progress on schedule because of DGHE’s extensive experience with implementing other ADB-financed projects in the sector (Basic Data). However, this was not the case during the initial years of 11 project implementation. Failure to provide leadership and support to the CPIU resulted in needless delays in implementation and increased costs. The benefits envisaged to be derived from the project steering committee were not fully realized because it was not actively involved in the Project. In the second half of the project life, DGHE’s performance in monitoring and supervising project implementation improved and was satisfactory until completion.
50. The performance of the CPIU in carrying out assigned responsibilities was initially somewhat problematic, mainly due to DGHE’s poor supervision, frequent turnover of staff, complexity of project design, and communication problems with LPIUs and academic consultants. Eventually, the CPIU was able to carry out its responsibilities in a satisfactory and timely manner. The performance of LPIUs varied from university to university and ranged from poor to very good. The quality of performance was directly linked to the management style of the LPIU director and the degree of involvement of the rector.
K. Performance of ADB
51. During the first two years of project implementation (from January 1994 to March 1996), ADB dispatched no review missions. For the remainder of the Project, ADB missions occurred approximately every six months. All project institutions were visited at least once during the project period. The average duration of review was about one week, which was inadequate for visits to all project sites. Frequently, a mission also reviewed other ADB-financed education projects and project processing activities. Nevertheless, the advice and assistance provided by the missions contributed significantly to expediting project implementation. In 1996, responsibility for all aspects of the Project’s implementation was delegated to ADB’s Indonesia Resident Mission). DGHE appreciated the delegation, as assistance in implementation and problem solving was available readily and as required. Over the entire course of the Project, ADB missions tended to focus on physical facilities, infrastructure, and institutional management. More attention should have been paid to the academic and human resources dimensions of the inputs.
III. EVALUATION OF INITIAL PERFORMANCE AND BENEFITS
A. Financial and Economic Performance
52. At the time of appraisal, ADB did not normally calculate rates of return on projects financed in the education sector. Due to lack of adequate data, the Project Completion Review Mission did not attempt a rate of return analysis. However, a cost-benefit analysis of a recent ADB-funded higher education project demonstrated a return of about 15 percent for bachelor level graduates of public universities.1
B. Attainment of Benefits
53. The Project provided at each participating university a solid foundation on which the institution can continue to build to meet its responsibilities as a leader in regional development. Concomitantly, the universities’ capability to generate additional income from services provided to the public and private sectors has been strengthened. Significant research has been
1 Loan 1792-INO:Technological and Professional Skills Development Sector Project, for $180 million, approved on 29 November 2000, RRP, page 29. 12 completed and generally accepted by users. Additionally, a cadre of faculty with the expertise in and interest to undertake varied types of research has been established at the universities.
54. Agriculture, basic sciences, engineering, and management were strengthened as envisaged at appraisal, enabling the universities to increase the supply and quality of professionals in these fields. The Project contributed significantly to the increase of advanced- degree holders among academic staff and to the upgrading of technical and administrative staff by significant short-term training. Due to the Project’s contribution, all assisted institutions now are capable of responding to new national skills requirements brought about by changing technology and regional development needs. A summary of staff profiles before and after project completion is provided in Appendix 7.
55. Internal and external efficiency were significantly improved, especially internal efficiency as defined at appraisal. Applications to the universities are approximately three times the available places, which allows the universities to be more selective in admitting new students. A semester credit system is in place at the universities, in addition to undergraduate degree courses and semester requirements, including the number of semester credits to be completed by the second and fourth years of study and an acceptable grade point average to continue studying at the university. The maximum number of years a student is allowed to complete requirements for an undergraduate degree is seven. An increasing number of students are, however, completing undergraduate degree requirements on schedule, which is 4.5 to 5 years depending on the field of study.
56. Linkages were established and strengthened among the 11 project universities and leading private universities in the same region. The result is improvements in curricula, and teaching and technical skills of staff. The ultimate beneficiaries will be the students in the faculties concerned and employers of graduates from these faculties.
57. Approximately 38,000 undergraduate students were enrolled in 1998/99) in the target faculties at the 11 universities and are currently benefiting from the project inputs, compared with the appraisal estimate of approximately 25,000 students (Appendix 8). An additional 35,000 students (total undergraduate enrollment for 1998/99 is 73,000) enrolled per year in the other faculties not directly supported under the Project are also benefiting due to the support facilities provided, such as libraries, computer laboratories, and language laboratories. The number of students benefiting each year will increase in accordance with the universities’ development mandates. The academic qualifications and competence of technical and administrative staff at the universities were significantly improved as a result of staff development programs.
58. In summary, the following benefits have been realized: (i) modern teaching and research facilities including equipment have been provided to improve instruction; (ii) curricula have been updated to reflect current job requirements; (iii) libraries have been upgraded and holdings expanded; (iv) teaching, management, and technical skills of staff have been upgraded; (v) the number of staff with higher academic qualifications has increased; (vi) linkages with industry and business have been expanded; (vii) a system to assess internal and external efficiency has been established; (viii) a system to improve management of operations and planning has been established; (ix) university admissions, retention, and graduation requirements have been enhanced; (x) academic and job counseling has improved; (xi) research has been completed and disseminated to intended audience; (xii) the Project’s targets for total student enrollment in targeted faculties have been achieved or exceeded; (xiii) internal and external efficiency (para. 9) has improved; (xiv) the quality of instruction at selected private universities has been improved through updated curricula and academic and technical skills of staff; (xv) BIOTROP 13 and ITS have been developed into regional resource centers; and (xvi) academic networking has increased among universities in eastern Indonesia.
IV. CONCLUSIONS AND RECOMMENDATIONS
A. Conclusions
59. Based on the project benefits and achievements accomplished (paras. 51-56) the Project can be classified as successful. Despite being affected by the economic and financial crisis that struck Indonesia in 1997 and 1998, the project accomplished all major targets and established a strong foundation and a critical mass in each university to produce better quality graduates responsive to market demands. However, some aspects require further attention; for example, problems relating to civil works at UNHALU, UNIB, and UNDANA (para. 14) should be resolved as soon as possible.1 A realistic assessment of the impact of the Project in improving the quality of higher education and its internal and external efficiency, will be possible some years after streams of students graduate in the assisted disciplines and engage in productive employment.
B. Recommendations
1. Future Monitoring
60. Project university rectors should instruct faculties provided with equipment to identify items that are not fully operational, and state what corrective actions are required for their full operation. Budget support for procurement of spare parts and accessories for teaching equipment should be given high priority at each university. Faculties should develop and implement a preventive maintenance program for all new equipment in accordance with procedures recommended by the manufacturer.
61. Project institutions should act immediately to correct any defects and problems in the construction and maintenance of campus buildings. Noticeable problems in buildings include water damage caused by leaky roofs, cracks in walls, leaking toilets, and broken tiles in floors and on laboratory work spaces. If these problems are not addressed adequately and on time, the damage will be more extensive and the cost of repairs higher.
62. The project universities should assure that the supply of electricity to new laboratories and workshops ensures satisfactory operation of equipment. This includes taking steps to protect equipment from power surges and electrical storms.
63. Project academic consultants produced many volumes of reports on their activities in curriculum development and enhancement of instruction. DGHE should disseminate these material across the entire higher education sector in Indonesia. Copies should be placed in selected university libraries and information disseminated by DGHE to facilitate retrieval.
64. In the last two years of the Project, DGHE and ADB agreed to allocate some of the cost savings to establish a satellite link to be maintained by DGHE for Internet access by project
1 At the time the project completion report was being finalized, concerned universities reported action to address the related problems with civil works. 14 institutions. The initially planned bandwidth is not sufficient to handle the increasing demand for internet access from project institutions. DGHE will have to fund the increased bandwidth and continued hardware and software maintenance required for the link if this aspect is to be sustainable. DGHE should consider relocating this facility to ITS to improve maintenance and high level operation by skilled technical specialists. Associated funding necessary for upgrading can be applied for under the Technological and Professional Skills Development Sector (TPSDSP) project.
65. Job counseling and placement assistance for graduates need to be made a priority of each university. To ensure successful operation of this important service to graduates and employers, adequate budget allocation is essential, as is providing a central location on campus that is easily accessible to students.1 DGHE should periodically assess the implementation of job counseling and placement efforts at the universities and bring to the attention of university rectors needed improvement.
2. Covenants
66. The covenants covering a specified cost recovery percentage from annual increases in student tuition and a specified percentage of annual budget allocation for O&M could not be implemented. Student tuition fees at a public university are determined by the local government, based on the economic level of the local community. DGHE considers that cost recovery from tuition fees alone is not possible and encourages universities to seek other means of cost recovery. Budget allocations for O&M of ADB-financed education projects in Indonesia have historically been inadequate. Considerable evidence indicates that a number of project institutions have the capacity to generate additional revenue. While this should be encouraged, the institutions concerned should also use the additional income for the O&M of their facilities.
67. Project institutions need to be more aggressive, with the support of DGHE, in assuring that local authorities provide necessary public utilities (e.g., water, power, road access, sewer, etc.) to newly constructed campus facilities. Several have continuing problems with water and power supply that make effective operation of science laboratories problematic.
3. Timing of Project Performance Audit Report
68. The project performance audit report should be prepared in 2004–2005, several years after project institutions received inputs and when benefits and impacts are clearly visible and can be measured.
C. Lessons Learned
69. Based on the experience gained under the Project, the following lessons were identified.2 (i) Participation of beneficiary institutions of higher education in the project design and implementation is crucial to enhance ownership and sustainability.
1 At UNHALU, the student advisory center was moved to an out-of-the-way location beyond the campus after Project completion. 2 These were recognized and incorporated in the Loan 1792-INO: Technological and Professional Skills Development Sector Project (TPSDSP), for $180 million, approved on 29 November 2000. The TPSDSP is based on competitive funding of subproject proposals prepared and implemented by successful institutions. 15
(ii) Sustainability should be given careful attention in designing a project that requires (i) innovative services such as student advisory, computer, and language centers to be established and continued after loan closing; and (ii) budget allocation, human services, and commitment by the executing agency and institutional decision makers.
(iii) ADB supervision of project implementation is more critical at the start when implementation arrangements are made operational, than when implementation is progressing on schedule. More staff time should be allocated to review missions for projects at widely scattered locations.
(iv) Poor design and quality of completed civil works are linked to inadequate and unqualified supervision at the local project level and to inadequate senior management. To eliminate these problems, the main implementing agency for a project should have overall responsibility for the monitoring of implementation activities.
(v) Human resource development was uniformly recognized as among the most significant contributions made by the Project. Returning fellows at each institution were eager to point out accomplishments and recognition received by their colleagues. However, project institutions were not always perceived as having provided sufficient opportunities for advancement and research started during degree programs.
(vi) Overseas training has contributed to academic networking through the establishment of collaborative research projects and joint publication activities. This has contributed to capacity building at the project universities, and provided international recognition for Indonesian scholars.1
(vii) The timing of the international and domestic consultants’ services must be synchronized to gain maximum benefit from their inputs. (viii) Projects with complex designs should be delegated early on to the resident mission. (ix) Before project closing, attention should be given to ensure sustainability of the project facilities and any weaknesses or defects in construction and related facilities should be adequately addressed.
1 One example is the award received by an academic staff member at UNSOED (Mulyoto Pangestu) who has received a “Gold Young Inventors Award” in 2000 from the Far East Economic Review for an inexpensive process for preserving animal sperm developed in conjunction with his doctoral dissertation research at Monash University in Australia. 16
LIST OF APPENDIXES
Number Title Page Cited on (page, para.)
1 Summary of Inputs at Each Project 17 4, 13 Institutions
2 Project Implementation 23 4, 13 15
3 Staff Development – Fellowships 26 6, 24
4 Project Implementation Schedule: 27 9, 42 Appraisal Estimate vs. Actual
5 Status of Compliance with Loan Covenants 28 10, 46
6 Disbursements 37 10, 47
7 Staff Profile – Before and After Project 39 12, 54
8 Student Enrollment Profile, Before and After 40 12, 57 the Project
17 Appendix 1, page 1
SUMMARY OF INPUTS AT EACH PROJECT INSTITUTIONS
1. The inputs expected to be provided by the Project are excerpted from appendixes 5 and D of the report and recommendation of the President for Loan 1253-INO. 1
A. Universitas Jambi (UNJA)
2. The Project inputs to UNJA were to be focused on the (i) Faculty of Agriculture, to develop new programs in agronomy, crop sciences and wetland agriculture to support modernization and the productivity programs and changing agricultural priorities in the region; (ii) Faculty of Animal Science, to develop programs in livestock production, animal nutrition and feed; and (iii) Faculty of Economics, to improve its business management courses and add courses in accountancy and finance so as to improve overall management capabilities, and particularly financial management in the agriculture, processing, storage and distribution, manufacturing, utilities, and services sectors.
3. The facilities and equipment for basic science, under a unified university science study program combining the basic science training from the program for educating science teachers (FKlP) and faculties of agriculture and animal science, were to be improved to create a more effective basis for studies in the applied sciences and for subsequent technological developments in the university. To encourage and facilitate wider uses of information technologies within undergraduate-level (S-1) courses, research work, and public service activities, adequate shared computer facilities were needed on the new campus. Similarly the language center were to be made more accessible and effective. The new campus had suffered from inadequate and inconsistent power and water supplies, which were likely to be further strained by increasing demand from laboratories and increased activities on the campus. The Project was to address this and other requirements to make the campus suitable for teaching, learning, and student life, such as improving the library stock and equipping a students advisory center.
4. To support the priority areas in the faculties of agriculture and animal science, UNJA was to receive equipment, subject to standard project conditions requiring a full inventory of existing equipment and the preparation of priority lists. To support the science study program, 4,450 square meters (m2) of new science laboratories and classrooms were to be provided for physics, chemistry, and biology. These were to allow a greater practical science element in the agricultural courses. The laboratories were to be fully equipped. Technical training for laboratory and other technicians was to be provided and academic advisers provided to assist in course development in the priority specialist disciplines, including management, accounting and finance, and the basic sciences. A new 350 m2 center for academic computing, fitted and furnished, was to be provided and equipped. The application of new technologies in subject areas was to be included in all training and advisory inputs. In the university library, 400 m2 was to be fitted out and furnished to accommodate a language laboratory. The university was to share a language teaching expert with Universitas Bengkulu (UNIB), about 8 hours drive away.
5. Up-to-date library books and journals in the priority areas were to be provided and librarians trained to improve the management and utilization of the library. UNJA was to receive academic advisers in animal science, biology, physics, chemistry, mathematics, agriculture, and management to support its curriculum development activities. Supporting, technical, and
1 Loan 1253-INO: Higher Education Project, for 140 million, approved on 21 September 1993.
18 Appendix 1, page 2 management staff were to receive training. The university’s management was to be supported to establish a student advisory center. The campus power and water supplies were to be augmented.
B. Universitas Bengkulu (UNIB)
6. The faculties to be assisted were the (i) Faculty of Agriculture, to develop programs and research capacity in wet-land agronomy, estate management, and crop science; and (ii) Faculty of Economics, to develop programs in business management, accountancy and finance, and the management of cooperatives. In addition, the facilities and equipment for basic science were to be improved to create a more effective basis for studies in the applied sciences and for subsequent technological developments in the university. Language instruction was to be improved to enable the students to access a wider range of information and staff to increase their eligibility for further studies in Indonesia and abroad.
7. To support the priority areas, the faculties of agriculture and animal science were to receive equipment, subject to standard project conditions requiring a full inventory of existing equipment and the preparation of priority lists. To support the science study program new science laboratories and classrooms were to be provided for physics, chemistry, and biology. The existing laboratory spaces was to be converted for other teaching purposes. Academic and support staff in the priority areas were to receive training and specialist support, and selected staff were to receive overseas fellowships.
8. A 350 m2 center for academic computing was to be provided and equipped. Up-to-date library books and journals in the priority areas were to be provided, and librarians trained to improve the management and utilization of the library. The university management was to receive training and improved information management systems and assistance to establish a student advisory center.
C. Universitas Jenderal Soedirman (UNSOED)
9. UNSOED has faculties of agriculture, biology, animal science, economics, and law. It offers nondegree economics and animal science. It was the Project’s only public regional university with a science faculty (biology), although it lacked facilities to undertake practical teaching and research adequately. There was a particular shortage of teaching space. UNSOED had inadequate computer support, library resources, and language teaching
resources.
10. The Project was to help the (i) Faculty of Agriculture, to develop its programs in agronomy, crop science, agricultural technology, and pests and plant diseases; (ii) Faculty of Animal Science, to develop its programs in cattle production; (iii) Faculty of Economics, to develop its programs in business management, accountancy, and finance; and (iv) Faculty of Biology, to develop its programs in botany, zoology, and environmental biology, and to develop expertise in microbiology, tissue-culture, aquatic biology, plant pathology, and disease control. The Project was to improve basic science teaching to underpin the work of the other faculties and upgrade the computing, library, and language facilities.
11. A science lecture room complex of 975 m2 was to be built, and a 800 m2 climatically controlled greenhouse provided for biology and environmental sciences teaching and research. Equipment was to be provided to support teaching and research in the priority subjects and training for academic and support staff associated with these areas was to be provided. A 350
19 Appendix 1, page 3 m2 computing center was to be provided and a language center built and equipped. Language- teaching training and support was to be provided. Up-to-date library books and journals in the priority areas were to be provided, and librarians trained to improve the management and utilization of the library. The university management was to receive training and improved information management systems and assistance to establish a student advisory center.
D. Universitas Jember (UNEJ)
12. The Project was to assist the (i) Faculty of Agriculture, to develop its programs in agribusiness, agricultural extension, crop science, soil science, and agricultural technology; and (ii) Faculty of Economics, to develop its programs in business, management, accountancy and finance; and basic science, under a unified university science study program to combine the basic science training from the FKIP and Faculty of Agriculture. A science laboratory and classroom complex of 4,450 m2 for physics, chemistry, and biology was to be provided, fitted, and furnished. Academic and support staff in the priority subjects were to receive training and support.
13. A 350 m2 computing center and 1,250 m2 language center were to be provided, fitted, and furnished, including special teaching rooms, large classrooms, a library and reading room, staff rooms, stores, and toilets. Language-teaching training and support was to be provided. Up- to-date library books and journals in the priority areas were to be provided and librarians trained. The university management was to receive training and improved information management systems and assistance to establish a student advisory center.
E. Universitas Mataram (UNRAM)
14. The Project was to focus on assisting the (i) Faculty of Agriculture, to develop its programs in soil science, plant breeding, and fisheries; (ii) Faculty of Animal Science, to develop its programs in nutrition and reproduction; (iii) Faculty of Economics, to develop its programs in business management, accountancy, and finance; (iv) Faculty of Engineering, to develop a program in civil engineering; and (v) basic science program, under a unified university science study program combining the basic science training from the FKIP and Faculty of Agriculture. The Project was to upgrade UNRAM’s computing, library, and language facilities and improve management of all aspects of the institution.
15. A 7,500 m2 engineering laboratory and classroom complex was to be provided to enable UNRAM to initiate S-1 programs in civil engineering. Academic and support staff in the priority subjects were to receive training and support. A 350 m2 center for academic computing was to be furnished and equipped. Language-teaching training and support was to be provided. Up-to- date library books and journals in the priority areas were to be provided, and librarians trained to improve the management and utilization of the library. The university management was to receive training and improved information management systems and assistance to establish a student advisory center.
F. Universitas Nusa Cendana (UNDANA)
16. The Project was to assist the (i) Faculty of Agriculture, to develop programs in tropical dry-Iand management, food technology, agricultural mechanization, fisheries, and forestry; (ii) Faculty of Engineering, to strengthen the nondegree option for civil engineering; (iii) Faculty of Animal Science, to develop programs in nutrition and reproduction; (iv) Faculty of Economics, to develop programs in business management, accountancy, and finance; and (v) basic science
20 Appendix 1, page 4 program, under a unified university science study program combining the basic science training from FKIP and Faculty of Agriculture.
17. The Project was to upgrade the computing, library, and language facilities and improve management of all aspects of the institution. Accommodation was to be provided for young staff and needy students. Academic and support staff in the priority areas were to be trained and supported. A library building of 3,500 m2 was to be provided and the present 700 m2 library building, which is unsuitable, was to be rehabilitated and converted to accommodate a computing teaching center and student center. A 1,250 m2 language center was also to be provided. Dormitory-style student accommodation of 4,500 m2 was to be provided, fitted, and furnished to accommodate 500 students. For staff housing, 50 new single-story units will be provided totalling 1,800 m2, for the junior academic staff.
18. The existing building for nondegree technology programs was to be modified to provide science laboratories for physics, chemistry, and biology. Academic and support staff in the priority subjects were to receive training and support. Up-to-date library books and journals in the priority areas were to be provided, and librarians trained to improve the management and utilization of the library. The university management was to receive training and improved information management systems and assistance to establish a student advisory center.
G. Universitas Tadulako (UNTAD)
19. The following faculties, disciplines, and specializations in UNTAD were to be assisted: (i) agriculture (agronomy, management of cash and plantation crops, animal science, forestry, and fisheries); (ii) engineering (civil and mechanical), and (iii) economics (business management, accountancy, and finance). A 5,000 m2 engineering laboratory complex and a 1,800 m2 expansion of facilities for fisheries and forestry were to be provided. Associated equipment and materials were also to be provided. Fellowships and nondegree staff development were additional components of the package.
H. Universitas Haluoleo (UNHALU)
20. The following were to be assisted: (i) the Faculty of Agriculture, to develop its programs in soil science and management of estate crops; (ii) the new faculty of fisheries, to develop new programs in fisheries technology, coastal fishery, deep water fishery, and fish processing; (iii) the Faculty of Economics, to develop its programs in business management, accountancy, and finance; and (iv) the basic science program, under a unified university science study program combining the basic science training from the FKIP and Faculty of Agriculture. The Project was to upgrade the computing, library, and language facilities and improve management.
21. A 4,000 m2 fisheries laboratory complex was to be provided to initiate the development of a new faculty of fisheries, and 2,000 m2 of laboratory space was to be substantially refurbished, fitted, and furnished for basic science courses (physics, chemistry, and biology). Up-to-date library books and journals in the priority areas were to be provided, and librarians trained to improve the management and utilization of the library. The university management was to receive training and improved information management systems and assistance to establish a student advisory center.
21 Appendix 1, page 5
I. Universitas Cendrawasih (UNCEN)
22. The following was to be assisted: (i) the Faculty of Agriculture, to develop its programs in agronomy, plantation management, fisheries, animal nutrition and reproduction, and forestry; (ii) the faculty of economics, to be separated from the Faculty of Social and Political Studies and established as a new faculty with the focus on business management; and (iii) the basic science program, under a unified university science study program combining the basic science training from the FKIP and Faculty of Agriculture. The Project was to upgrade the computing, library, and language facilities and improve management of all aspects of the institution. Staff from Jayapura and Manokwari campuses will receive academic, technical, and management training and support.
23. Jayapura Campus. Science laboratories and classrooms (4,450 m2) were to be provided for physics, chemistry, and biology and a 350 m2 computer teaching center was to be provided and equipped. Accommodation was to be provided for 600 students in dormitory-style buildings to include a student center, and staff housing was to be provided to accommodate 60 junior academic staff.
24. Manokwari Campus. A 1,470 m2 physics laboratory and classroom was to be added to the science complex. A 350 m2 center for academic computing and a 1,250 m2 language center was to be provided, fitted, and furnished. Accommodation for 400 students was to be fitted and furnished; and 1,440 m2 of new staff housing provided, of the same type as at Jayapura, to accommodate 40 staff.
J. Private Institutions
25. The Project included selected private universities to enhance the quality and diversity of regional higher education opportunities. Criteria for selecting private institutions included
(i) complementarity between the academic profiles of the nearest project-supported public university and the private institution; (ii) provision of recognized diploma level (D-3) and S-1 programs in project priority disciplines additional to or complementary to the offerings of the public university; (iii) ability to increase the equity of access to higher education in the region; and (iv) inclusion in the range of private institutions from academy to university.
26. The private institutions identified for support were to be reviewed during the Project to ensure continuing complementarity and benefit. Items to be made available, on semi-permanent loan, to selected private universities included office, laboratory, computing, and library equipment, books and journals. The private universities were also to receive development opportunities for academic, technical and managerial staff.
K. Surabaya Institute of Technology (ITS)
27. The Project was to help ITS to become a resource institution to universities in eastern Indonesia, receive support in relevant subject areas, and develop its capacity and abilities to network regionally and nationally. The Project was to help ITS rationalize its use of facilities, rehabilitate and adapt existing facilities, and provide extra accommodation. The priority area was ocean engineering with a special focus on marine and offshore engineering. Other departments, including mechanical, electrical, and computer engineering, which were to work in cooperation with the Faculty of Ocean Engineering, were also to be supported. The Project was
22 Appendix 1, page 6 to assist the Civil Engineering Department to become a new faculty of civil engineering and planning.
28. ITS was to be helped to contribute to the development of appropriate manufacturing technologies and techniques through the Faculty of Industrial Technology and through its research and public service centers. Computer, electrical, mechanical, and industrial engineering have important roles in relation to industrial needs and the transportation and service infrastructure and were to receive substantial support. Chemical engineering, engineering physics, civil engineering, statistics, and mathematics were to receive less support as they were among the better developed areas at ITS.
29. A 5,595 m2 building to accommodate the Faculty of Ocean Engineering and a 7,387 m2 building to accommodate the Faculty of Civil Engineering and Planning were to be provided under the Project. 10,341 m2 of space vacated by the library and the faculties of ocean engineering and civil engineering and planning were to be refurbished for use by the Faculty of Industrial Technology and the Faculty of Basic Science, and 863 m2 of new laboratory space was to be provided for the Faculty of Industrial Technology.
30. A computer and information service center, 2,660 m2 of classrooms, and a research center building was to be provided. The latter was to accommodate the Marine Studies Research Center. Existing facilities were to be refurbished to accommodate the materials science and industrial studies research centers. ITS was to receive equipment and materials to support the developments in the priority areas. Academic, support, technical, and managerial staff were to receive training.
L. Southeast Asian Regional Center for Tropical Biology (BIOTROP)
31. The Project was to develop, upgrade, and extend BIOTROP's facilities in key areas and strengthen network links between BIOTROP and the project universities, through training and research activities. Support for BIOTROP's development as a resource center was to focus on improving its capacities in tropical applied biology and environmental studies.
32. A 3,200 m2 environment studies center and a 3,250 m2 applied biology laboratories building was to be provided, fitted, and furnished. A new conference, seminar, and classroom building of 2,150 m2 was to be provided so BIOTROP could provide more courses to regional university staff and others. Of the existing laboratories, 2,100 m2 were to be refurbished. 600 m2 of new greenhouses were to be constructed and 60 m2 of existing greenhouses refurbished. The fish tanks were to be refurbished, including their plumbing. Academic, support, technical, and managerial staff were to receive nondegree training.
M. Directorate General of Higher Education (DGHE)
33. Project activities included DGHE as one of the focal points in improving higher education administration and management. DGHE was to be assisted to improve management and the use of information systems, and to increase the quality of support that DGHE provides for institutional management and for networking between institutions. DGHE was to be actively involved in the implementation of the Project's special programs, which were considered to be one of the most important functions of DGHE in the future. The consultants to be engaged under the Project were to work within the central local project implementation units, and directly with other DGHE staff to help DGHE rationalize and improve its performance. DGHE staff were to receive training opportunities, including study fellowships for degree courses and short-term courses.
23 Appendix 2, page 1 PROJECT IMPLEMENTATION
Description of Project Outputs by Logical Framework Achievement
Component 1: Regional Universities Development
1. Better developed and more relevant curriculum content Curriculum development and better methodo- and methodologies logies have been applied in priority disciplines.
2. Increased numbers of academic staff with higher 726 academic staff up-graded overseas and in- qualifications and improved skills in priority disciplines country from bachelor level (S1) to masters level (S2) and S2 to doctors level (S3) in priority disciplines.
3. Improved facilities for teaching and research Teaching and research facilities for 11 project institutions have been improved.
4. Improved resources for teaching and research Teaching and research resources for 11 project institutions have been improved.
5. Improved services and technical support for teaching Teaching and research services and technical and research support for 11 project institutions have been improved.
6. Improved educational opportunities and student support 10,894 students have benefited from scholarships under student support scheme. Component 2: University Networking Subcomponent A: Networking Programs
1. Productive cooperation in research and development Research and development activities have been achieved through institutional and provincial networks achieved through institutional and provincial networks.
2. Establishment of student advisory centers Student advisory centers have been established at all project institutions. Subcomponent B: Resource Institutions Dev.
1. Surabaya Institute of Technology (ITS): rectifying ITS has become more active as a technology present weakness through rehabilitation, consolidation, resource center especially supporting eastern and development Indonesia.
2. Enhancement of capacity to serve a resource university About 20% of academic and administrative staff for human resource development in eastern Indonesia have been upgraded to support enhancement of capacity to serve a resource university for human resource development in eastern Indonesia.
3. South-East Asian Center for Tropical Biology BIOTROP is more widely recognized and active (BIOTROP): more widely recognized and active as a as a regional center, having organized a new regional center masters degree program in management inform- ation systems for natural resources management. Component 3: Higher Education Management Strengthening
1. Improved institutional management Institutional management has been improved by various staff development, seminars, and other activities of the Project.
2. Effective information management in higher education Project benefit monitoring and evaluation has to facilitate the collection and analysis of data for more been developed to facilitate the collection and effective planning, monitoring, and management analysis of data for more effective planning, monitoring, and management as a model for the Directorate General of Higher Education (DGHE).
3. More efficient utilization of institution facilities and Utilization of institution facilities and resources has resources been improved.
24 Appendix 2, page 2
Key Assumptions/Risks (Input-Output) Assessment of Current Status
Component 1: Regional Universities Development
1. Current level of efficiency and quality at project Curricula, academic services, methodologies, universities can be enhanced through improvement of and materials have been improved. curricula, academic services, methodologies, and materials
2. A critical mass of academic staff with relevant About 20 percent of academic staff with qualifications is required at each university if the quality relevant qualifications is upgraded at each of graduates is to be improved university.
3. The upgrading and more regular/effective use of The use of libraries, laboratories, and other libraries, laboratories, and other academic support academic support facilities have been facilities will have a significant impact on the improved under various project activities. effectiveness of teaching and the quality of graduates
4. Additional equipment and materials are required to Additional equipment and materials have achieve project objectives for improvements in teaching been provided for improvement in teaching and research and research activities.
5. The provision of specialized training for technical staff Specialized training for technical staff of of laboratories, computer, and language centers is a laboratories, computer, and language centers requirement for improved teaching and research has been provided to all project institutions for improvement of teaching and research quality.
6. DGHE's emphasis on equity and the extension of The project provided scholarships for 10,894 educational opportunities warrants special attention to students to improve equity and extend students from remote areas, women, and educational opportunities, with special disadvantaged students attention to students from remote areas, women, and disadvantaged students.
7. National Development and Planning Agency In all project Institutions, Regional Develop- (BAPPENAS), Indonesian Chamber of Commerce ment and Planning Agency (BAPPEDA), (KADIN), provincial governments, and business KADIN, provincial governments and business organizations are interested in cooperation with organizations are interested in cooperation university research and public service activities through with university research and public service joint financing, cooperation of personnel, etc. activities through joint financing, cooperation of personnel, etc. Component 2: University networking Subcomponent A: Networking Programs
1. A network is a structured association between At least 10 networks have been established as institutions with common purposes; the Project can a structured association among project improve the value of the association by supporting institutions with common purposes; the Project program of development-oriented activities also improved the value of the association by supporting a program of development-oriented activities.
2. Well established student advisory centers will be Student advisory centers have been effective effective means of linking the project universities to means of linking the project universities to provincial demand and opportunities provincial demand and opportunities.
3. Collaboration at both regional and national levels Collaboration at both regional and national between universities (i.e., public, private, resource) levels among universities (i.e. public, private, government agencies and business organizations is resource) government agencies and business necessary for the achievement of project objectives, organizations has been developed under and once established, should continue beyond project various project activities. completion 25 Appendix 2, page 3
Key Assumptions/Risks (Input-Output) Assessment of Current Status
Subcomponent B: Resource Institutions Development
1. ITS and its staff could become the most significant ITS and its staff have become the most developmental institution in eastern Indonesia for significant institution in eastern Indonesia for applications of technology to economic and national applications of technology to economic and development national development.
2. ITS is to grow further as center for research in the ITS has been growing as a center for areas of technology and engineering for the research in the areas of technology and development of eastern Indonesia and to support engineering for the development of eastern project provincial universities Indonesia and to support project provincial universities.
3. Southeast Asian Regional Center For Tropical BIOTROP has been growing as a center for Biology (BIOTROP) has great potential to grow as a research and development in tropical applied center for research and development in tropical applied biology and environmental studies, with a biology and environmental studies, with a national and national and international reputation. international reputation
Component 3: Higher Education Management Strengthening
1. DGHE will continue to pursue policies for the devolution DGHE continued to pursue policies for the of increased management responsibilities to devolution of increased management res- universities and will require evidence of improved ponsibilities to universities and will require institutional management capabilities and efficiencies evidence of improved institutional manage- ment capabilities and efficiencies.
2. DHGE will continue to work on the development and DHGE continued to work on the development testing of computer-based information system for staff and testing of computer-based information and student records, and for financial and facilities system for staff and student records, and for management financial and facilities management.
3. The quality of teaching and research at project The quality of teaching and research at institutions will be significantly improved if staff are able project institutions significantly improved and to rely on effective library, laboratory, and other support staff are able to rely on effective library, services laboratory, and other support services.
26 Appendix 3
STAFF DEVELOPMENT - FELLOWSHIPS
Table A3.1: Fellowships
Name of Appraisal Awarded Completed Drop-out Continuing Institutions Estimates S2 S3 S2 S3 S2S3 S2 S3 S2 S3 F M Tot F M Tot
A. Overseas DGHE 3 0 1 230 00 3 0 00 00 ITS 57 47 6 67 73 5 68 73 59 54 0014 19 UNCEN 22 6 4 12 16 4 3 7 14 2 00 25 UNDANA 27 11 4 23 27 0 9 9 19 1 00 88 UNEJ 19 8 4 21 25 0 6 6 22 3 00 33 UNHALU 17 2 4 19 23 1 2 3 19 0 00 43 UNIB 11 5 2 911 2 46 8 4 00 32 UNJA 16 6 3 15 18 1 4 5 16 5 00 20 UNRAM 28 13 4 28 32 1 910 302 00 28 UNSOED 28 8 5 23 28 0 14 14 25 7 00 37 UNTAD 29 6 5 22 27 0 7 7 25 3 00 24 Subtotal 257 112 42 241 283 14 126 140 240 81 0043 59
II. In-Country DGHE 3 0 3 360 0 0 00 0 0 6 0 ITS 69 6 12 38 50 1 4 5 50 4 0 0 0 1 UNCEN 29 0 10 21 31 0 02800030 UNDANA 35 2 10 26 36 0 1 1 35 1 0 0 1 0 UNEJ 14 1 5 15 20 0 2 2 20 2 0 0 0 0 UNHALU 18 2 6 16 22 0 2 2 22 2 0 0 0 0 UNIB 15 1 3 12 15 0 1 1 12 1 0 0 3 0 UNJA 23 1 10 13 23 0 1 1 22 1 0 0 1 0 UNRAM 42 1 10 31 41 0 1 1 40 1 0 0 1 0 UNSOED 35 1 12 23 35 1 0 1 35 1 0 0 0 0 UNTAD 36 2 7 26 33 0 6 6 33 6 0 0 0 0 Subtotal 319 17 88 224 312 2 18 20 297 19 0 0 15 1 Total 576 129 130 465 595 16 144 160 537 100 0 0 58 60
Table A3.2: Starter and Matching Research Grants
Name of Research Allocation Implemented Surplus Balance Institutions Starter Matching Starter Matching Starter Matching
ITS 50 50 65 67 15 17 UNCEN 50 50 83 46 33 (4) UNDANA 50 50 104 78 54 28 UNEJ 50 50 67 67 17 17 UNHALU 50 50 54 64 4 14 UNIB 50 50 92 59 42 9 UNJA 50 50 67 71 17 21 UNRAM 50 50 62 81 12 31 UNSOED 50 50 81 62 31 12 UNTAD 50 50 62 68 12 18 Total 500 500 737 663 237 163
Source: Ministry of National Education. 27 Appendix 4
PROJECT IMPLEMENTATION SCHEDULE: APPRAISAL ESTIMATE VS. ACTUAL
Year and Quarter Implementation 1994 1995 1996 1997 1998 1999 2000 Activities 12341234123412341234123412 3 4 Consulting Services
Civil Works
Equipment and Supplies
Staff Development
Special Programs
Appraisal Actual 28 Appendix 5, page 1
STATUS OF COMPLIANCE WITH LOAN COVENANTS
Reference of Loan Covenants Status of
Loan Agreement Compliance
Section 4.01(a) The Borrower shall cause the Project to be carried out Generally complied with. with due diligence and efficiency and in conformity with sound administrative, financial, engineering, environmental and educational practices.
Section 4.02 The Borrower shall make available, promptly as Generally complied with. needed, the funds, facilities, services, land and other Occasional delays were resources which are required, in addition to the experienced in the proceeds of the Loan, for the carrying out of the Project allocation/release of and for the operation and maintenance of the Project counterpart funds. facilities.
Section 4.03.(a) In the carrying out of the Project, the Borrower shall Generally complied with. cause competent and qualified consultants and contractors, acceptable to the Borrower and the Bank, to be employed to an extent and upon terms and conditions satisfactory to the Borrower and the Bank.
Section 4.03.(b) The Borrower shall cause the Project to be carried out Generally complied with. in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to the Borrower and the Bank.
Section 4.04. The Borrower shall ensure that the activities of its Complied with. departments and agencies with respect tot he carrying out of the Project and operation of the Project facilities are conducted and coordinated in accordance with sound administrative policies and procedures.
Section 4.05.(a) The Borrower shall make arrangements satisfactory to Complied with as per minutes the Bank for insurance of the Project facilities to such of loan negotiations. extent and against such risks and in such amounts as shall be consistent with sound practice.
Section 4.05.(b) Without the limiting the generality of the foregoing, the Complied with. Borrower undertakes to insure, or cause to be insured, the goods to be imported for the Project and to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such goods.
Section 4.06.(a) The Borrower shall maintain, or cause to be Complied with. maintained, records and accounts adequate to identify the goods and services and other items of expenditure.
Section 4.07.(b) Without limiting the generality of the foregoing, the Generally complied with Borrower shall furnish, or cause to be furnished, to the occasional slippage. Bank quarterly reports on the carrying out of the Project and on the operation and management of the Project facilities.
29 Appendix 5, page 2
Reference of Loan Covenants Status of Loan Agreement Compliance
Section 4.07.(c) Promptly after physical completion of the Project, but in Complied with. any event not later than three (3) months thereafter or such later date as may be agreed for this purpose between the Borrower and the Bank, the Borrower shall prepare and furnish to the Bank a report, in such form and in such detail as the Bank shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by the Borrower of its obligations under the Loan Agreement and the accomplishments of the purposes of the Loan.
Section 4.08. The Borrower shall enable the Bank's representatives Complied with. to inspect the Project, the goods financed out of the proceeds of the Loan, and any relevant records and documents.
Section 4.09. The Borrower shall ensure that the Project facilities are Generally complied with. operated, maintained and repaired in accordance with However, O&M provisions are sound administrative, financial, engineering, not adequate in all project environmental, educational and maintenance and institutions. operational practices.
Schedule 3, The Borrower shall establish, within 60 days after the Complied with. para. 9(a) Effective Date, a Special Account at Bank Indonesia or another Borrower-owned bank to ensure the timely release of the proceeds of the Loan for the purpose of making payments for Project implementation. The Special Account shall be established, operated and maintained in accordance with the Bank's "Guidelines on imprest Fund and Statement of Expenditures Procedures" dated November 1986 and such other terms and conditions as may be agreed upon between the Borrower and the Bank.
Schedule 3, The Borrower shall cause auditors, acceptable to the Complied with. para. 9(b) Bank, to periodically audit the accounts and records relating to the Special Account and SOE and furnish the audit reports thereon to the Bank as specified not later than nine (9) months after the end of each related fiscal year.
Schedule 4, Procurement of goods and services shall be subject to Complied with. para. 2 the provisions of the "Guidelines for Procurement under Asian Development Bank Loans" dated March 1989, as amended from time to time, which have been furnished to the Borrower.
Schedule 6, para. 1 DGHE of the MOEC shall be the Project Executing Complied with. Agency for the Project and shall be responsible for coordination and overall implementation of the Project. 30 Appendix 5, page 3
Reference of Loan Covenants Status of Loan Agreement Compliance
Schedule 6, para. 2 DGHE shall establish within DGHE in Jakarta a Central Complied with. Project Implementation Unit (CPIU) responsible for centrally managing Project implementation and directly dealing with the nominated offices of the administration of BIOTROP for detailed Project implementation with regard to BIOTROP. The CPIU shall be acceptable to the Bank. The CPM shall be assisted by two Assistant Project Managers (CAPMs), who shall be responsible, respectively, for implementation of Parts I and II of the Project.
Schedule 6, para. 3. The CPIU shall be responsible for all aspects of Project Complied with. implementation including employment and supervision of architectural and engineering Project Consultants for the design; tendering for and construction of civil works; procurement of furniture, service equipment, teaching and fellowship and other staff development programs; and engagement and management of Project Consultants' and specialists' services and training inputs including the Project Consultants, Academic Advisors and Student Support Experts, Technical specialists, Language Specialists and Visiting Fellows engaged for the Project.
Schedule 6, para. 4. The Borrower shall establish a local Project Complied with. implementation unit (LPIU) at each of the Project Public University and ITS. Each LPIU shall be headed by a Project Manager (LPM) who shall be responsible to the CPM for day-to-day Project implementation at the local level. LPMs shall also work in close cooperation with the Rectors of the Project Institutions and the Project Consultants and Specialists engaged under the Project.
Schedule 6, para. 5. The Borrower shall establish a Project Steering Generally complied with. Committee to give policy guidance to CPIU. The PSC However, the PSC didn’t meet shall meet as and when required but at least every six as frequently as needed. months to monitor and review the Project implement- ation, supervise the functioning of CPIU and LPIUs and provide necessary instructions as appropriate. The PSC shall be chaired by the Director of DGHE and its membership shall include the Director of Academic Affairs of DGHE, the Bureau Chief of BAPPENAS in charge of Religion. Education, Culture and Sports or his/her representative; a representative of the Ministry of Finance; a representative of national research and development organizations and the CPM.
Schedule 6, para. 6. The Borrower shall convene a Coordinating Forum to Complied with. ensure complementarity of the Project with other initiatives in support of higher31 education development. CF shall meet at least twice a year to review the progress made in the implementation of the Project and examine coordination of the Project with the concerned bodies.
Schedule 6, para. 7. The CPIU shall be responsible for the administration of Complied with. 31 Appendix 5, page 4
Reference of Loan Covenants Status of Loan Agreement Compliance
the fellowships and training programs provided under the Project. The Borrower through its MOEC shall submit for the Bank's approval the detailed criteria and procedures for selection of candidates for overseas fellowships and staff training. The CPIU shall select such candidates according to the Bank approved procedures of MOEC and make appropriate arrangements as satisfactory to the Bank for carrying out the training program.
Schedule 6, para. 8. The CPIU shall ensure that a strict system of selection Complied with. and guarantees be adopted in connection with the staff training program under the Project to ensure that the recipients of the overseas training will continue their services with the concerned Project Institutions in accordance with the present requirements of the Borrower.
Schedule 6, para. 9. The CPIU shall be responsible for the selection of Complied with. candidates from the Project Private Universities for both long and short-term fellowships. The CPIU shall also ensure that the Project Private Universities adopt and follow a strict system of guarantees or bonding for ensuring continued services of the recipients of the training under the Project of the Project Private University sponsoring such training.
Schedule 6, In selection of candidates for long-terms staff Generally complied with. para. 10. development and fellowship program, the Borrower However, the proportion of shall ensure that the proportion of places allocated to female candidates in some female staff be at least equal to the proportion of institutions was not female staff in the higher education system. proportional to their overall number.
Schedule 6, Detailed procedures for implementing the Students Complied with. However, the para. 12. Support Programs, including the experimental student loan program was scholarships or fellowships or loans and for monitoring converted to a student grant their effectiveness and impact shall be determined by program due to the economic CPIU in close cooperation with Directorate of Student and financial crisis of 1997 and Affairs, DGHE, with assistance of Student Support 1998. Experts. Detailed implementation mechanism for the Student Support Programs including the selection criteria for scholarship awardees shall be subject to the Bank approval.
Schedule 6, Applications for the Science Scholarships shall be Complied with. para. 13. solicited by the Project Universities. The Project Universities shall evaluate the applicants and after obtaining the commitment of the potential recipients, shall make recommendations through the concerned LPIU. The CPI shall make final selection through procedures acceptable to the Borrower and the Bank, arrange the placement of the awardees of the Science Scholarships at one of Resource Institutions and make appropriate financial arrangements.
Schedule 6, The CPIU shall prepare, in consultation with the Complied with. para. 14. Directorate of Research and Community Services 32 Appendix 5, page 5
Reference of Loan Covenants Status of Loan Agreement Compliance
Development (DRCSD) and DGHE, the criteria and guidelines satisfactory to the Bank for selection of candidates for receiving the Research Grants and the Joint Projects Grants. The Research grants and the Joint Project Grants shall be made on a competitive basis for a period of one to three years during which time the recipients thereof shall be required to establish a plan to attract outside funding for continuation in succeeding years.
Schedule 6, The selection criteria for selection of the recipients of Complied with. para. 15. the Research grants shall include, among others, (i) and assessment on the relevancy of the application proposal to regional development issues and (ii) the potential of the proposed research topic to attract outside funding for continuation in succeeding years.
Schedule 6, The Joint Projects Grants may be applied to finance Complied with. para. 16. the share of the Project Universities in undertaking joint research work with the local government of the Borrower or industry.
Schedule 6, The LPIUs shall establish local selection committees to Complied with. para. 17. screen and evaluate the proposals locally and to make recommendations to the CPIU. The CPIU shall, in cooperation with DRCSD, be responsible for evaluation the proposals submitted by various candidates through the Project Universities and arrange dissemination of the results of the selected research.
Schedule 6, The DGHE shall review and inform the Bank every Partially complied with. para. 18. twelve months starting from the Financial Year 1994 of Reports were provided but the Borrower on the situation with regard to the O&M problems were not budgetary allocations for the entire higher education carefully monitored. sector as well as the budget of each individual Project Institutions (including the review of each Project Institution's income and expenditure statements). The Borrower shall provide appropriate guidance to the Project Institutions when the allocation by any of the Project Institutions to operations and maintenance (O&M) appear to be insufficient or the general patterns of income and expenditure appear to be inappropriate.
Schedule 6, The Borrower shall encourage Project Institutions to Not complied with. Due to the para. 19. increase tuition fees at a rate greater than the change economic crisis, DGHE in the consumer price index. Each Project Public requested no increase in tuition University's direct cost recovery targets shall be fees as of school year 1997/98. established together with projection of overall medium Other forms of income term budget for the next six years. The Borrower shall generation were encouraged monitor this issue, provide necessary guidance to the by the DGHE to improve cost Project Public Universities and inform the Bank of recovery. progress made very twelve months.
Schedule 6, The Borrower shall set up a task force within three Complied with. para. 20. months of the Effective Date to study the issue of financing higher education with a view to establishing long-term targets for resource mobilization for the public higher education system at large including the share of the higher education budget to be borne by 33 Appendix 5, page 6
Reference of Loan Covenants Status of Loan Agreement Compliance
the Borrower, local governments, private sector and students. The Borrower shall introduce, within twenty four months of the Effective Date, a mechanism for resource mobilization for higher education with specific targets for the Borrower, local governments, students and community.
Schedule 6, The Borrower shall take the following steps to improve para. 21. the equity of access to higher education:
(a) continue or enhance the special national Complied with. scholarship program established in 1993 and inform the Bank every twelve months of the progress being made with the program;
(b) facilitate the implementation of the experimental Complied with. Students Support Programs under the Project by establishing necessary regulations and other administrative instruments in a timely manner; and
(c) officially review and consider re-introduction of a Not complied with. Due to student loan scheme on the basis of study to be economic and financial crisis of conducted under the Project component covering 1997 and 1998, DGHE Student Support Programs. Such review shall be requested cancellation of made within twelve months of the completion of the student loan program. study and the Bank shall be fully informed of the details of the review.
Schedule 6, The Borrower shall establish a new national Complied with. A national para. 22. accreditation body in accordance with the workplan as higher education accreditation agreed by the Bank. Such a body shall be established council was established in within twelve months of the Effective Date. The 1994. Borrower shall keep the Bank informed of the operation of the body as well as of the accreditation criteria to be adopted.
Schedule 6, The Borrower shall complete the necessary review and Partially complied with. para. 23. establish numerical targets for lowering the share of core curriculum for each discipline within six months of the Effective Date together with a time table for implementation and inform the Bank every twelve months the progress made. In addition the Borrower shall make all the Project Institutions review their institutional requirements for S-1 degree.
Schedule 6, The Borrower shall ensure that each Project University Complied with. para. 24 establish a local forum to hold regular consultative meetings with he local economic planning authority, chamber of commerce, industry, business and community at large regarding, among other things, possible contribution of the universities for regional development at least every six months and submit to the DGHE the minutes of such meetings.
Schedule 6, In order to ensure timely provision of basic para. 25. infrastructure such as water, electricity, sewerage and access roads, the Borrower shall cause each Project Institution to:
34 Appendix 5, page 7
Reference of Loan Covenants Status of Loan Agreement Compliance
(a) submit to the concerned local governments the detailed facilities development program together with Generally complied with. projected requirements of water, electricity and other However, in some institutions infrastructure facilities and the timeframe of the facilities this remained problematic. development within three months of the Effective Dates;
(b) obtain assurance of the concerned local governments to provide inter-connections to necessary Complied with. off-site infrastructure in a timely manner upon finalization of the design and prior to the commencement of civil works; and
(c) maintain regular contact with the concerned local governments, at least every six months, on basic Complied with. infrastructure and other concerns to ensure appropriate coordination in connection with the provision of infrastructure facilities for the Project.
Schedule 6, The Borrower shall carefully monitor the impact of the Complied with. para. 26. recent adjustment in the salaries and allowances of civil servants on the effective functioning of the CPIU and LPIU staff on a full-time basis within six months of the Effective Date and identify problems if any, and undertake necessary remedial measures to be agreed with the Bank within eighteen months of the Effective Date.
Schedule 6, In order to achieve better coordination among the para. 27. Borrower and externally assisted projects at DGHE level as well as at each institution, the Borrower shall:
(a) assist in organizing meetings at the central level of Complied with. all donors involved in the development of the Borrower's higher education system at least every twelve months; (b) facilitate coordination of project managers of all Complied with. donor assisted projects through the establishment of necessary mechanisms to ensure appropriate coordination at the project level; and
(c) encourage the Project Institutions to establish and Complied with facilitate functioning of institutional level coordination bodies of all local project implementation units of various projects at each institution and ensure that the record of the meetings of such bodies be included in the periodical progress report.
Schedule 6, The Borrower shall ensure that all the public higher Complied with. para. 28. education institutions' development master plans be environmentally assessed within two years of the Effective Date. In the case of the Project Institutions, such environmental assessment shall be completed prior to the engagement of contractors for civil works. Schedule 6, The Borrower shall ensure that the proportion of the Partly complied with para. 29. places for staff development including fellowships and short-term training opportunities allocated to females be equal to or greater than the proportion of females in the respective target groups, based on the data to be supplied through improved management information 35 Appendix 5, page 8
Reference of Loan Covenants Status of Loan Agreement Compliance
system in the Project Institutions and DGHE.
Schedule 6, The Borrower shall establish a special task force (Task Complied with. para. 30. Force) in consultation with the Office of State Minister for the Role of Women to review possible measures to improve female participation in higher education. The Task Force will complete the relevant review within eighteen months of the Effective Date and initiate, in consultation with the Bank, the strategies identified within thirty months of the Effective Date.
Schedule 6, A mid-term review shall be undertaken by the Borrower Complied with para. 31. and the Bank during the second or third year of Project implementation to assess the Project's progress and achievements against its objectives as well as to identify any difficulties encountered and recommend remedial measures if required.
Schedule 6, The Borrower shall undertake BME activities to ensure Complied with. para. 32. the Project facilities are managed efficiently and the Project benefits are maximized. DGHE shall, through BME surveys, monitor and evaluate with the assistance of the Project Consultants, benefits with respect to: (i) internal efficiency of the Project institutions (including input, processes and output); (ii) satisfaction of social demand; (iii) cost effectiveness; and (iv) employment of graduates external efficiency.
Schedule 6, The BME surveys shall include a baseline indicator Partly complied with. Baseline para. 33. study to determine a set of realistic, controllable and and postproject indicators were measurable targets which reflect the anticipated Project not provided for changes in benefits and include a monitoring study to compare enrollment and staff numbers actual and Project performance to baseline and target by gender. Quality control and indicators and recommend measures for immediate consistency of data collected corrective action. The BME shall be conducted with varied by institution. The particular attention on the impact on the intended mission had to request data beneficiaries, i.e., the students, graduates, employers, from institutions. users or beneficiaries of the Project Universities' research and public service activities, and compare the success of the Project in terms of actual and forecasted benefits with he targets.
Schedule 6, As a result of the above BME activities, the Borrower Complied with. para 34. shall consider adopting short, medium and long-term actions, strategies and policies in order to improve the efficiency and effectiveness of the Project and the Project Institutions.
Schedule 6, DGHE shall design a system for undertaking tracer Complied with. para. 35. studies, including research and survey methodology, sampling, questionnaire, data processing and analysis and reporting. CPIU shall develop BME methodologies which shall be incorporated into the operational procedures of the DRCSD in DGHE. The CPIU in collaboration with DRCSD shall design and install and operational system for monitoring the Project benefits, improve management information, and assess the impact of the Project on the development of higher education sector of the Borrower. 36 Appendix 5, page 9
Reference of Loan Covenants Status of Loan Agreement Compliance
Schedule 6, The Borrower shall ensure that an environmental Complied with. para. 36. assessment be completed by each Project Institution prior to the engagement of the contractors to carry out civil works for such Project Institution under the Project.
Schedule 6, The Borrower shall ensure that (i) utmost care shall Complied with. para. 37. be taken in detailed design and construction of the UNCEN's Jayapura campus to minimize the adverse environmental impact ;(ii) the expansion of ITS campus shall be closely monitored to minimize the adverse environmental impact and (iii) non-existence of the adverse environmental hazards in the above construction shall be reconfirmed prior to the Bank approval of the pertinent civil works.
Schedule 6, All research activities under the Project shall be Complied with where relevant. para 38. undertaken with minimal adverse environmental impact and hazardous and toxic wastes resulting from such research work shall be properly disposed in accordance with relevant regulations of the Borrower.
Schedule 6, The Borrower shall provide all assistance as Generally complied with. para. 39. necessary to the Project Institutions to ensure the Project Institutions may acquire all land and rights to land for timely implementation of the Project.
37 Appendix 6, page 1
DISBURSEMENTS
Table A6: Quarterly Disbursements (in $ million) Actual Actual Percentage of Actual Year Quarter Disbursement Cumulative Disbursements
1994 II 1.000 1.000 0.97 III 0.038 1.038 0.04 IV 0.325 1.363 0.32 1995 I 0.385 1.748 0.38 II 0.757 2.505 0.74 III 0.947 3.452 0.92 IV 2.408 5.860 2.35 1996 I 0.748 6.608 0.73 II 5.208 11.816 5.08 III 2.070 13.886 2.02 IV 0.870 14.756 0.85 1997 I 5.378 20.134 5.24 II 4.468 24.602 4.36 III 4.964 29.566 4.84 IV 2.114 31.680 2.06
1998 I 4.558 36.238 4.44 II 0.737 36.975 0.72 III 3.862 40.837 3.76 IV 2.603 43.440 2.54
1999 I 4.610 48.050 4.49 II 9.450 57.500 9.21 III 9.173 66.673 8.94 IV 10.776 77.449 10.50
2000 I 6.858 84.307 6.69 II 7.398 91.705 7.21 III 7.700 99.405 7.51 IV (0.026) 99.379 (0.03) 2001 I 3.205 102.584 3.12
Total 102.584 100.00
Source: ADB's Loan Financial Information System. Figure A6: Incremental Disbursements ($ million)
120
102.584 99.379 100
77.449 80
60 38
43.44 Disbursement 40 31.68
20 14.756
5.86 1.363 0 App
1994 1995 1996 1997 1998 1999 2000 2001 6, endix Year p a g e 2
Source: ADB's Loan Financial Information System 39 Appendix 7
STAFF PROFILE BEFORE AND AFTER PROJECT
Name of 1993 1998 1999 Institutions S1 S2 S3 Total S1 S2 S3 Total S1 S2 S3 Total
UNCEN 340 71 2 413 237 179 8 424 260 272 15 547
UNDANA 542 101 0 643 442 229 19 690 396 264 23 683
UNEJ 309 82 8 399 234 135 22 391 407 171 24 602
UNHALU 298 64 1 363 283 164 5 452 270 321 18 609
UNIB 273 150 8 431 283 164 5 452 146 275 44 465
UNJA 152 117 7 276 187 199 9 395 239 245 15 499
UNRAM 362 108 8 478 355 258 24 637 246 219 24 489
UNSOED 388 131 15 534 355 258 24 637 358 370 36 764
UNTAD 231 26 2 259 301 120 55 476 294 293 15 602
Total 2,895 850 51 3,796 2,677 1,706 171 4,554 2,616 2,430 214 5,260
S1 = bachelor level, S2 = masters level, S3 = doctorate level. UNCEN = Universitas Cendrawasih, UNDANA = Universitas Nusa Cendana, UNEJ = Universitas Jember, UNHALU = Universitas Haluoleo, UNIB = Universitas Bengkulu, UNJA = Universitas Jambi, UNRAM = Universitas Mataram, UNSOED = Universitas Jendral Soedirman, UNTAD = Universitas Tadulako.
Source: Ministry of National Education. 40 Appendix 8 STUDENT ENROLLMENT PROFILE, BEFORE AND AFTER THE PROJECT
Student Enrollment Nondirect Direct Direct Non-Direct Total Beneficiaires Name of Beneficiaries At Beneficiaries Beneficiaries Beneficiaries Institution at Appraisal Appraisal 1991a 1998/99b 1998/99b 1998/99b 1991a
ITS 8,875 6,840 760 7,600 UNCEN 4,131 3,118 2,078 5,196 UNDANA 5,962 2,771 4,156 6,927 UNEJ 9,284 3,611 5,415 9,026 UNHALU 5,933 3,474 5,211 8,685 UNIB 2,921 2,255 3,382 5,637 UNJA 5,691 2,526 3,789 6,315 UNRAM 6,683 3,428 2,285 5,713 UNSOED 8,001 4,905 4,904 9,809 UNTAD 6,442 5,266 3,510 8,776 Total 25,000 63,923 38,194 35,490 73,684
ITS = Institut Teknologi Surabaya, UNCEN = Universitas Cendrawash, UNDANA = Universitas Nusa Cendana, UNEJ = Universitas Jember, UNHALU = Universitas Haluoleo, UNIB = Universitas Bengkulu, UNJA = Universitas Jambi, UNRAM = Universitas Mataram, UNSOED = Universitas Jendral Sudirman, UNTAD = Universitas Tadulako. a This table is included in Supplementary Appendix H, RRP . 1993 b The student body for academic year 1998/99 identified by the project for selection of student grants.
Source: Ministry of National Education.