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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 36122-ID PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED LOAN IN THE AMOUNT OF US$208 MILLION TO THE REPUBLIC OF INDONESIA FOR A STRATEGIC ROADS INFRASTRUCTURE PROJECT Public Disclosure Authorized June 2,2006 Transport Sector Unit East Asia and Pacific Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective June 1,2006) Currency Unit = Indonesian Rupiah IDR 1,000 = US$O.111 US$ = IDR9,OOO FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AADT Annual Average Daily Traffic ACAP Anti Corruption Action Plan ADB Asian Development Bank AMDAL Analisa Mengenai Dampak Lingkungan (Environmental Impact Assessment) Bappenas Badan Perencanaan Pembangunan Nasional (National Development Planning Agency) Bapedalda Badan Pengendalian Dampak Lingkungan Daerah (Local Environmental Impact Management Agency) BPK Supreme Audit Institution Capex Capacity expansion CTC Core Team Consultant DGH Directorate General of Highways, Ministry of Public Works DGLT Directorate General of Land Transport DOP Directorate of Planning, Ministry of Public Works DSC Design and Supervision Consultant EIRTP- 1 Eastern Indonesia Region Transport Project EIRTP-2 Second Eastern Indonesia Region Transport Project ESAMP Environmental and Social Assessment Management Plan GO1 Government of Indonesia ICB International Competitive Bidding JARNS Java Arterial Road Network Study JBIC Japan Bank for International Cooperation KPK Anticorruption Commission LARAP Land Acquisition and Resettlement Action Plan LARF Land Acquisition and Resettlement Policy Framework MPW Ministry of Public Works MOT Ministry of Transport NCB National Competitive Bidding PAP Project Affected Person PBC Performance Based Contract POLRI Indonesian National Police PSC Project Steering Committee SOP Standard Operational Procedure SRIP Strategic Roads Infrastructure Project SRRP Sumatra Region Roads Project UKL Upaya Pengelolaan Lingkungan (Environmental Management Effort) UPL Upaya Pemantauan Lingkungan (Environmental Monitoring Effort) WP Work Program Acting Vice President: Mr. Jeffrey S. Gutman, EAP Country Director: Mr. Andrew Steer, EASIN Sector Director: Mr. Jitendra N. Bajpai, EASTR Task Team Leader: Mr. Jerry Lebo, EASTR INDONESIA Strategic Roads Infrastructure Project CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE ..................................................................... 1 1. Country and sector issues .................................................................................................... 1 2 . Rationale for Bank involvement .......................................................................................... 3 3 . Higher level objectives to which the project contributes .................................................... 3 B. PROJECT DESCRIPTION ..................................................................................................... 5 1. Lending instrument .............................................................................................................. 5 2 . Project development objective and key indicators (Annex 3) ............................................. 5 3 . Project components .............................................................................................................. 5 4 . Lessons learned and reflected in the project design ............................................................ 6 5 . Alternatives considered and reasons for rejection ............................................................... 7 C . IMPLEMENTATION .............................................................................................................. 8 1. Partnership arrangements (if applicable) ............................................................................. 8 2 . Institutional and implementation arrangements .................................................................. 8 3 . Monitoring and evaluation of outcomes/results .................................................................. 9 4 . Sustainability ....................................................................................................................... 9 5 . Critical risks and possible controversial aspects ................................................................. 9 6 . Loadcredit conditions and covenants ............................................................................... 10 D. APPRAISAL SUMMARY .................................................................................................... 12 1. Economic and financial analysis ....................................................................................... 12 2 . Technical ........................................................................................................................... 13 3 . Fiduciary ............................................................................................................................ 13 4 . Social ................................................................................................................................. 15 5 . Environment ...................................................................................................................... 16 *. 6 . Safeguard policies .............................................................................................................. 17 7 . Policy Exceptions and Readiness ...................................................................................... 19 FOR OFFICIAL USE ONLY This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. Annex 1: Country and Sector Background............................................................................... 21 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ..................27 Annex 3: Results Framework and Monitoring ......................................................................... 30 Annex 4: Detailed Project Description ...................................................................................... 34 Annex 5: Project Costs ................................................................................................................ 40 Annex 6: Implementation Arrangements .................................................................................. 42 Annex 7: Financial Management and Disbursement Arrangements ..................................... 45 Annex 8: Procurement Arrangements ....................................................................................... 55 Annex 9: Economic and Financial Analysis .............................................................................. 61 Annex 10: Safeguard Policy Issues ............................................................................................. 67 Annex 11: Project Preparation and Supervision ...................................................................... 90 Annex 12: Documents in the Project File .................................................................................. 92 Annex 13: Statement of Loans and Credits............................................................................... 93 Annex 14: Country at a Glance .................................................................................................. 98 Annex 15: Anti-Corruption Action Plan ................................................................................. 100 Maps: IBRD 34582,34583,34584,34585,34586,34587, 34588 INDONESIA STRATEGIC ROADS INFRASTRUCTURE PROJECT PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASTR Date: June 2,2006 Team Leader: Jerry A. Lebo Country Director: Andrew D. Steer Sectors: Roads and highways (100%) Sector ManagedDirector: Jitendra N. Bajpai Themes: Trade facilitation and market access (P); Decentralization (S); Infrastructure services for private sector development (S) Project ID: PO79906 Environmental screening category: Full Assessment Lending Instrument: Specific Investment Loan [XI Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 208.00 Proposed terms: Variable-Rate Single Currency Loan payable in 20 years, including 5 years of grace and annuity principle repayment, at a rate equal to LIBOR for the Loan Currency plus the Variable Spread, subject to any waiver of a portion of such interest as may be determined by the Bank from time to time. Source Local Foreign Total BORROWER 79.00 0.00 79.00 INTERNATIONAL BANK FOR 0.00 208.00 208.00 RECONSTRUCTION AND I I I DEVELOPMENT Total: 79.00 208.00 287.00 Borrower: Republic of Indonesia Responsible Agency: Ministry of Public Works J1. Pattimura No. 20 Jakarta Selatan 12 110 Indonesia Tel: (62-2 1) 720-028 1 727-658 1 Fax: (62-21) 720-1760,727-9232 Contact: Mrs. Sri Apriatini Soekardi, Director of Planning, Directorate General of Highways Expected effectiveness date: November 1,2006 Expected closing date: December 3 1,201 1 Does the project depart from the CAS in content or other significant respects? [ ]Yes [XINO Ref: PAD A.3 Does the project require any exceptions from Bank policies? Ref: PAD D. 7 [ ]Yes [XINO Have these been approved by Bank management?
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