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WEST JAVA URBAN DEVELOPMENT SECTOR PROJECT (Loan 1384-INO)

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WEST JAVA URBAN DEVELOPMENT SECTOR PROJECT (Loan 1384-INO) PCR: INO 29206 ASIAN DEVELOPMENT BANK PROJECT COMPLETION REPORT ON THE WEST JAVA URBAN DEVELOPMENT SECTOR PROJECT (Loan 1384-INO) IN INDONESIA July 2005 CURRENCY EQUIVALENTS Currency Unit – rupiah (Rp) At Appraisal At Project Completion (31 August 1995) (28 February 2003) Rp1.00 = $0.000439 $0.000111 $1.00 = Rp2,278 Rp9,000 ABBREVIATIONS ADB – Asian Development Bank BAPPEDA – Badan Perencanaan Pembangunan Daerah (Regional Development Planning Agency) BAPPENAS – Badan Perencanaan Pembangunan Nasional (National Development Planning Agency) BME – benefit monitoring and evaluation DED – detailed engineering design DGHS – Directorate General of Human Settlements DGURD – Directorate General of Urban and Rural Development EIRR – economic internal rate of return FDS – final disposal site FIRR – financial internal rate of return IDC – interest during construction KIP – Kampong Improvement Program LIDAP – local government institutional development action plan LUCF – local urban development coordination forum MIP – Market Improvement Program MOHA – Ministry of Home Affairs MPW – Ministry of Public Works MSRI – Ministry of Settlements and Regional Infrastructure O&M – operation and maintenance PCR – project completion report PDAM – Perusahaan Daerah Air Minum (local water enterprise) PJM – Program Jangka Menengah (midterm investment program) PUCF – provincial urban development coordination forum REPELITA – Rencana Pembangunan Lima Tahun (five-year development plan) RIAP – revenue improvement action plan PIU – project implementation unit PMU – project management unit RRP – report and recommendation of the President SLA – subsidiary loan agreement SPAR – subproject appraisal report STP – sludge treatment plant TKPP – Tim Koordinasi Pembangunan Perkotaan (National Coordinating Team for Urban Development) UFW – unaccounted-for water WTP – water treatment plant WEIGHTS AND MEASURES ha – hectare km – kilometer l/s – liter per second m – meter m3 – cubic meters GLOSSARY Bupati – Administrative head of a kabupaten Kabupaten – The third level of government in Indonesia, a subdivision (district) of a province Kampong – A residential area, usually for low-income classes, in a town or a city NOTES (i) Before 2000, the fiscal year (FY) of the Government and its agencies ended on 31 March. Since 2000, the fiscal year has ended on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2000 ends in December 2000. (ii) In this report, "$" refers to US dollars. CONTENTS Page BASIC DATA ii MAP vii I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 3 C. Project Costs 7 D. Disbursements 8 E. Project Schedule 8 F. Implementation Arrangements 8 G. Conditions and Covenants 9 H. Related Technical Assistance 10 I. Consultant Recruitment and Procurement 10 J. Performance of Consultants, Contractors, and Suppliers 10 K. Performance of the Borrower and the Executing Agency 11 L. Performance of the Asian Development Bank 12 III. EVALUATION OF PERFORMANCE 12 A. Relevance 12 B. Efficacy in Achievement of Purpose 13 C. Efficiency in Achievement of Outputs and Purpose 13 D. Preliminary Assessment of Sustainability 14 E. Environmental, Sociocultural, and Other Impacts 15 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 15 A. Overall Assessment 15 B. Lessons Learned 15 C. Recommendations 16 APPENDIXES 1. Original and Revised Subprojects/Cities 18 2. Project Performance Against Project Framework 19 3. Project Outputs 24 4. Consulting Services and Training 25 5. House Connections for Water Supply 27 6. Problems Encountered with Some Project Components 28 7. Operating Data of Local Water Enterprises (PDAMs) 30 8. Project Cost 37 9. Contract Awards and Disbursements 39 10. Project Schedule 40 11. Project Organization Chart 41 12. Status of Compliance with Loan Covenants 42 13. Project Benefits and Impacts 51 14. Financial and Economic Analysis 53 BASIC DATA A. Loan Identification 1. Country Indonesia 2. Loan Number 1384-INO 3. Project Title West Java Urban Development Sector Project 4. Borrower Republic of Indonesia 5. Executing Agency Directorate General of Human Settlements in the Ministry of Public Worksa 6. Amount of Loan $70 million (ordinary capital resources) 7. PCR Number PCR: INO 905 B. Loan Data 1. Appraisal – Date Started 30 May 1995 – Date Completed 23 June 1995 2. Loan Negotiations – Date Started 26 August 1995 – Date Completed 27 August 1995 3. Date of Board Approval 26 September 1995 4. Date of Loan Agreement 26 January 1996 5. Date of Loan Effectiveness – In Loan Agreement 25 April 1996 – Actual 8 May 1996 – Number of Extensions 1 6. Closing Date – In Loan Agreement 30 June 2002 – Actual 20 February 2004 – Number of Extensions 1 7. Terms of Loan – Interest Rate ADB’s pool-based variable lending rate system – Maturity (years) 25 – Grace Period (years) 6 8. Terms of Relending – Interest Rate 11.5% per annumb – Maturity (years) 20 – Grace Period (years) 5 – Second-Step Borrower District governments and local water enterprises a In the 23 August 2000 Cabinet shuffle, the Directorate General of Human Settlements in the Ministry of Public Works became the Directorate General of Urban and Rural Development in the Ministry of Settlements and Regional Infrastructure (MSRI). In October 2004, MSRI was renamed the Ministry of Public Works. b Excluding 0.75% per annum commitment charge and 0.25% per annum service charge iii 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 10 January 1997 20 February 2004 86 months Effective Date Original Closing Date Time Interval 8 May 1996 30 June 2002 73 months b. Amount ($ million) Category Last Net or Original Revised Amount Amount Amount Undisbursed Subloan Allocation Allocation Canceled Available Disbursed Balance Part A: Institutional 9.5 8.5 2.8 8.5 6.7 1.8 Support, Consulting Services, and Training Part B: Civil Works 29.0 15.3 12.4 15.3 13.2 2.1 Crash 0.0 3.4 0.0 3.4 3.4 0.0 Program Equipment 19.0 18.3 2.5 18.3 16.5 1.8 and Materials Interest 12.5 12.5 2.9 12.5 9.6 2.9 During Construction Total 70.0 58.0 20.6 58.0 49.4 8.6 10. Local Costs (Financed) - Amount ($ million) 17.4 - Percent of Local Costs 57.9 - Percent of Total Costs 21.8 iv C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 40.0 32.0 Local Currency Cost 77.0 47.9 Total 117.0 79.9 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 47.0 30.8 ADB Financed 57.5 39.5 Other External Financing 0.0 0.0 Total 104.5 70.3 IDC Costs Borrower Financed 0.0 0.0 ADB Financed 12.5 9.6 Other External Financing 0.0 0.0 Total 12.5 9.6 ADB = Asian Development Bank, IDC = interest during construction. 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual Part A: Institutional Support, Consulting Services, and 9.5 6.7 Training Part B: Infrastructure - Land 5.0 1.2 - Civil Works 62.0 35.0 - Equipment and Materials 28.0 24.0 - Crash Program 0.0 3.4 Total 104.5 70.3 v 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants - Project Implementation Management Advisory June 1996 January 1997 - Benefit Monitoring and Completion Report March 1997 June 1998 - Institutionalization and Financial Monitoring June 1996 January 1999 - Public Participation and Campaign Advisory June 1996 January 1999 - Privatization Advisory June 1996 January 1999 - Institutionalization Advisory January 1997 January 1999 - Training January 1997 September 1996 Completion of Engineering Designs December 1999 March 2002 Civil Works Contract: Date of Award June 1996 9 September 1997 Completion of Work December 2001 April 1998–February 2003 Equipment and Supplies Dates First Procurement June 1996 26 February 1997 Last Procurement December 2001 16 January 2003 Completion of Equipment Installation December 2001 22 February 2003 Start of Operations January 1997 April 1998 Completion of Tests and Commissioning December 2001 February 2003 Beginning of Start-Up January 2002 March 2003 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 8 May 1996 to 31 December 1996 Satisfactory Satisfactory From 1 January 1997 to 31 December 1998 Satisfactory Unsatisfactory From 1 January 1999 to 31 December 1999 Satisfactory Partly Satisfactory From 1 January 2000 to 31 December 2000 Partly Satisfactory Satisfactory From 1 January 2001to 30 November 2004 Satisfactory Satisfactory From 1 December 2004 to 31 December 2004 Partly Satisfactory Satisfactory vi D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Membersa Appraisal 30 May–23 June 1995 6 144 a, b, c, d, e Project Inception 21–26 October 1996 1 6 f Special Project Administration 3–5 November 1997 3 9 e, f, i Review Mission 1 8–12 July 1998 2 10 g, h Review Mission 2 26 October–3 2 18 g, h November 1999 Midterm Review 21–31 August 2000 2 22 g, h Review Mission 3 28 January–5 February 1 9 i 2002 Review Mission 4 2–12 September 2002 2 22 g, i Review Mission 5 19–27 February 2003 2 18 g, i Project Completion Reviewb 6–28 October 2004 2 42 i, j a a = project engineer, b = senior programs officer, c = senior counsel, d = financial analyst, e = project implementation specialist, f = senior project engineer, g = project implementation officer, h = senior project officer, i = project officer, j = staff consultant. b The project completion report was prepared by Siti Hasanah, Project Officer and Mission Leader. o o 106 o 00'E 110 00'E 130 00'E S o u t h C h i n a S e a o P A C I F I C 5 00'N o BRUNEI DARUSSALAM O C E A N 5 00'N C e l e b e s INDONESIA MALAYSIA S e a o o 0 0 WEST JAVA URBAN DEVELOPMENT SECTOR PROJECT S U M A T R A K A L I M A N T A N SULAWESI INDONESIA (as completed) IRIAN JAKARTA J a v a S e a B a n d a S e a J A V A J a v a S e a I N D I A N O C E A N o A r a f u r a S e a o 10 00'S TIMOR-LESTE 10 00'S PROJECT AREA o 110 00'E 130 o 00'E 6 o 00'S 6 o 00'S Batu Jaya Ci.
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