Document of The World Bank
FOR OFFICIAL USE ONLY
Report No. 8005-IND Public Disclosure Authorized
STAFF APPRAISALREPORT
INDONESIA Public Disclosure Authorized
HIGHWAYSECTOR PROJECT
OCTOBER23, 1989 Public Disclosure Authorized
InfrastructureOperations Divisicn CountryDepartment V Asia Region Public Disclosure Authorized
Thisdocument has a restricted distibufion and may be used by recipients only in the performance of their officiauduties. Its contents may not otherwise be disdosed without WorldBank aouthorization. CURRENCY EQUIVALENTS (As of July 1989)
Currency Unit - Rupiah (Rp) US$1.00 = Rp 1,770 'p 100 = US$0.05
Rp 1 million 8 US$565
GOVERNMENTOF INDONESIA FISCAL YEAR
April 1 - March 31
UNITS AND MEASURES
1 meter (M) = 39.37 inches 1 kilometer (km) 0.62 miles 1 hectare (ha) 3 2.47 acres
PRINCIPAL ABBREVIATIONS AND ACRONYMS USED
ADB - Asian Development Bank AADT - Average Annual Daily Traffic BAPPEDA I and II - Provincial and District Development Planning Board BAPPI!AS - National Planning Agency DBM - Dinas Bina Marga; Provincial Roads Department DGH - Directorate General of Highways (MPW) DGLC - Directorate General of Land Communications (MOC) DGRD - Directorate General of Regional Development (MHRA) DPUK - Local Government Department of Public Works DPUP - Provincial Government Department of Public Works GOI - Government of Indonesia IGGI - Intergovernmental Group on Indonesia INPRES - Central Government Grant to Local Governments IRE - Institute of Road Engineering in Bandung ITB - Institute of Technology, Bandung P.T. Jasa Marga - Indonesian Toll Road Corporation MHA - Ministry of Home Affairs MOC - Ministry of Communication MOF - Ministry of Finance MPW - Ministry of Public Works OECF - Overseas Economic Cooperation Fund of Japan PPB - DGH's Planning, Programming and Budgeting System PS&AP - Policy Statement and Action Plan RBO - Regional Betterment Office (of DGH) Repelita - Indonesian National Five Year Development Plan RMS - DGH's Road Management System SOE - Statement of Expenditures VOC - Vehicle Operating Cost Vpd - Vehicles per day VWD - Vehicle Weights and Dimensions AL l INDONESIA
HIGHWAY SECTOR PROJECT
Loan and Project Summary
Borrower: The Republic of Indonesia
Amount: US$350.0 million equivalent
Terms: Repayable in 20 years including five years of grace, at the l ~~~~~~standardvariable interest rate.
Project The main objective of the project is to assist the Objectives Government in improving the overall efficiency of the road l ~~~and subsector by supporting its Policy Statement and Action Plan Description: (PS&AP) for road transport and road use and comprehensive 1989/90 to 1991/92 expenditure plan for inter-urban national and t ~~~~~~provincialroads which together aim at: (i) consolidating recent improvements in the formulation and implementation of highway sector expenditures; (ii) instituting improved policies on road use; (iii) strengthening the institutions involved in the subsector; and (iv) improving the quality of the road net- work by focussing on maintenance and rehabilitation/betterment | ~~~~~~works.The project includes: (i) technical assistance, studies and training to assist in the implementation of the PS&AP and the expenditure plan; and (ii) specific subprojects of the expenditure plan selected annually on the basis of agreed pro- cedures and economic and technical criteria. Major components for which loan proceeds will be used are road and bridge improvement and maintenance programs but other components would include road safety, technical assistance and training.
Benefits The main benefits expected from the project are lower ; ~~andRisks: road transport costs and time savings for all road users. Bene- fits accruing to truck and bus companies will be passed on to producers and consumers through lower prices of goods and ser- vices. The main risks are delays in: (i) improving transport policies and strengthening of institutions because of political sensitivities and bureaucratic inertia; and (ii) in maintaining and improving the infrastructure because of lack of funds or insufficient implementation capacity. The risk of delays in policy improvement have been limited through careful prepara- tion and formulation of the Actit-iPlan resulting in well defined and staged activities. The risk of delays in implementing civil works are also limited because the three- year expenditure plan is based on firm indications of foreign funding and moderate growth of local funding and GOI's imple- mentation capacity has increased rapidly in recent years and will receive continued support under the project.
|This documnenthas a restricted distribution and may be used by recipients only in the peronac |of their official dutie,s. Its contents iray not otherwise be disclosed without World Bank atoiain - ii -
Estimated Costt la Local Foreign Total ------(USS million)------
DGH's 1989/90-1991/92 Expenditure Plan Maintenai.ce 296.3 296.4 592.7 Rehabilitation/betterment 489.5 622.9 1,112.4 Bridge replacement 76.1 177.6 253.7 New construction/upgrading 36.2 54.2 90.4 Administration 255.8 109.7 365.5
Total Cost 1,153.9 1,260.8 2,414.7
Financing Plan:
Local Funds: Central and Provincial Governments la 896.6 - 896.6 Ongoing and committed foreign loans Lb 78.1 684.5 762.6 New Loans: ADB Tenth Loan /c 17.3 42.7 60.0 OECF Loans {c 84.9 112.3 197.2 EXIM Bank of Japan Loans /c 51.4 - 51.4 IBRD Highway Sector Loan 25.6 324.4 350.0 To be determined - 96.9 96.9
Total Financing Required 1,153.9 1,260.8 2,414.7
Estimated Disbursements: FY 1990 19.11 1992 1993 ----- (US$Sillion)------
Annual 60.0 90.0 100.0 100.0 Cumulative 60.0 150.0 250.0 350.0
Economic Rate of Return: Over 15Z
Mapss Nos. IBRD 21746, 21747, 21748, 21749 and 21750
La Includes taxes and duties estimated at US$208.5 million. lb Including US$56.0 million for IBRD loans made between 1981 and 1986.
/c Either already signed or in final proce.ssing stage. -iL -
INDONESIA
HIGHWAY SECTOR PROJECT
STAFF APPRAISAL REPORT
table of Contents
Page No.
Loan snd Project Summary ...... i
I. THE TRANSPORT SECTOR ...... 1. A. Eco.,omic and Sector Setting ...... 1 B. Secvor Organization. 2 C. Goverrment Objectiveb and Policies ...... 3 D. Sector Performance .5 E. Experience Under Previous Bank-Financed Projects . . . 5 F. Role of the Bank and Lending Strategy ...... 6
II. THE ROAD SUBSECTOR ...... 7 A. The Network ...... 7 B. Road Transport ...... 7 C. Highway Administration ...... 11 D. Highway Planning and Financing ...... 13 E. Highway Design and Construction ...... 14 F. Highway Maintenance .16 G. Staff and Training .17 H. Environmental Aspects .17 I. Overall Efficiency in the Road Subsector ...... 18
III. ROAD SUBSECTOR POLICIES AND THE ROAD EXPENDITURE PROGRAM . . 19 A. Objectives and Scope ...... 19 B. Principal Policies .19 C. Three-Year Expenditure Plan for National and Provincial Roads .. 22 D. Annual Work Programs and Budgets .. 25 E. Toll Roads ...... 26
IV. BANK PARTICIPATION ...... 27 A. Project Background and Formula.ion .27 B. Objectives ...... 27 C. Description of Bank Financed Subprojects .27 D. Cost Estimates and Financing ...... 34 E. Implementation of Bank-Financed Subprojects .35 F. Procurement of Bank Financed Suborojects ...... 36 G. Disbursements .37 H. Retroactive Financing .38 I. Monitoring and Auditing .38 J. Project Environmental Impact .39
This report was prepared by Mr. Sigfus 0. Sigfusson (Principal Highway Engineer), Mr. Jean-Charles Crochet (Senior Transport Economist), Mr. Joris Van der Ven (Senior Transport Economist), and Mr. David Hawes (Transport Economist, Consultant) following appraisal in June 1989. - iv -
Page No.
V. JUSTIFICATION AND RISKS ...... *...... 40 A. General ...... 40 B. Evaluationof MethodologiesUsed for Preparingthe ExpenditurePlan and the Budget ...... 40 C. Risks ...... 43
VI. AGREEMENTS REACHED AND RECOMMENDATIONS ...... 45
ANNEXES 1. Policy Statement and Action Plan ...... 47 2. Agreed Methodologyfor Three-YearExpenditure Plan and Economic Criteria for Annual Work Program and Budget ...... 63 3. DocumentsAvailable in the Project File .65
TABLES 1.1 Domestic FreightMovements ...... 67 1.2 Domestic PassengerTraffic ...... 68 2.1 Road Network Length by Road Class and Island Group . . . . . 69 2.2 Road Network Density .70 2.3 Road Pavementsby Road Class and Island Group ...... 71 2.4 Condition of the National and ProvincialRoad Network 1988 . 72 2.5 RegisteredMotor Vehicles, 1974-86 ...... 73 2.6 Distributionof Annual Vehicle Kilometersby Road Class and IslandGroup .74 2.7 Mean Traffic Levels by Road Class and Island Group .75 2.8 Expenditures in Highway Sector (1984/85 to 1988/89) . . . 76 2.9 DGH Geometric Standards . . . . i ...... 77 3.1 Three-YearExpenditure Plan for National and ProvincialRoads 79 3.2 Main Ongoing and CommittedForeign Loans ...... 81 3.3 Three-YearExpenditure Plan: Breakdownof Expendituresin Accordancewith Availabilityof Foreign Funds ...... 82 4.1 First List of Bank Financed Subprojects ...... 83 4.2 Summary of ConsultancyServices ...... 84 4.3 List of Equipment ...... 85 4.4 Summary of Costs by Component ...... 87 4.5 Summary of Costs by Type of Expenditure ...... 88 4.6 EstimatedDisbursement Schedule ...... 89 5.1 SummarizedDescription of Standard Segments ...... 90 5.2 Optimum Initial Treatmentsand IERR for Each StandardSegment .91 CHARTS 2.1 Organizationof the DirectorateGeneral of Highways 2.2 Organizationof the ProvincialPublic Works Agency 2.3 Organizationof the DirectorateGeneral of Regional Development
MAPS IBRD 21746 National and ProvincialRoads Network ir Sumatra IBRD 21747 National and ProvincialRoads Network in Java and Bali IBRD 21748 National and ProvincialRoads Network in Kalimantan and Sulawesi IBRD 21749 National and ProvincialRoads Network in Timor IBRD 21750 National and ProvincialRoads Network in Irian Jaya 1. THE TRANSPORTSECTOR
A. Economic and Sector Setting
1.1 Until the early 19708 agriculturear.d forestry provided the main- stay of Indonesia'seconomy and were the main source of foreign exchange. When oil price increasesaccelerated in 1974, oil assumed a more prominert position and the economic situationbecame closely tied to developmentsin the oil market. In the early and mid-1980s, the external environmentdeteriorated sharply as a result of lower oil prices, followed by the depreciationof the US dollar. Government respondedtn the new challengeswith measures to restrain demand, mobilize resourcesand bring about the structuralchanges needed to develop the non-oil economy. These policies have been successful and non-oil exports have increasedrapidly and in 1988 exceeded oil and gas earnings for the first time since 1974. The task of the transportsector is to meet the rapid growth in traffic generatedby these macroeconomicdevelop- ments.
1.2 All transportmodes--road, rail, shipping,civil aviation, inland waterways, and pipelines--playa role in Indonesia'stransport system but road is the dominant mode with an estimated53Z of medium- and long-distance freight transport and 88Z of passengertraffic (Tables1.1 and 1.2). The modes tend to complementone anotherwith each aerving specificmarket needs. Only in Java and in a few corridors in other regions is there intermodalcom- petition. Java also has the most highly developedand best integratedoverall transportsystem where alleviationof congestionand eliminationof capacity constraintsare becoming key concerrs. In other regions such as Kalimantan and Irian Jaya, by contrast, accessibilityand services are still poor in certain areas.
1.3 The transportsystem and transportflows have been shaped by the different resource endowments of the islands Lnd the distributionof popu- lation. Exports of primary prodvets have traditionallybeen moved directly from producing areas to export markets, while capital and consumer goods are importedmainly via the principalports which coincidewith the main centers of activity. In interislandtrade, the predominanttransport flows are between Java and the Outer Islandswith Jakarta and Surabaya as the focal points of these flows. As manufacturingis concentratedon Java and incomes are still relativelymodest, there is as yet no large-scaleexchange of manufacturedgoods between regions. Some ten transport corridors,however, mainly on Java and between Java and selected points on the other Islands, feature intense transportactivity. Furthermore,exports of manufactured goods are growing rapidly in some selected corridors. For the future,owing to the developmentstrategy adopted by the Governmentbased on industr4al diversificationand export-led growth, the challengewill be to meet the rapid growth in newly emerging traffics and to cater for the service requirementsof overseas clients. These tasks will be all the more challengingas they will need to be accomplishedin an environmentof budgetary restraint. Thus, if transport is to continue to contributeto economic growth and not pose a constraint,its overall efficiencywill have to increase rapidly. B. Sector Organization
4 Government Structure. I' view of the size of the country, the structureof governmenthas necessarilya functional (line Ministries)and a regional dimension. Being a unitary state, however, all levels of government are branches of the Central Government. The main line ministries and agencies which have responsibilitiesin transport include the National Development PlanningAgency (BAPPENAS),the Ministry of Communications(MOC), the Ministry of Public Works (MPW) through its DirectorateGeneral of Highways (DGH) (for national and provincial roads), and the Ministry of Home Affairs (MHA), through its DirectorateGenera'l of Regional Development (DGRD) (for district and municipal roads and for the annual vehicle registrationtax and the owner- ship transfer tax). These ministries and agencies are active at both the central and regional governmentlevel and severalmechanisms are used for devolving responsibilitiesfrom the center to the regional level. In addi- tion, the Ministry of Finance (MOF) has a role in tariff setting for the state transportenterprises and in the taxation and pricing of fuels used in trans- port and the Ministry of Industry (MOI) has a role in the formulationof pol- icies for motor vehicle manufactureand assembly.
1.5 The MOC is responsiblefor government functionsin the air and sea transport subsectorsand, in the land transport subsector,for rail and inland waterway and ferry transport. It also has overall responsibilityfor regulat- ing road traffic and the road transport industry and is involved in related implementationand enforcement. MOC's responsibilitiesinclude supervisionof 20 state-ownedenterprises engaged in the provisionof transportand terminal services. It executes its duties through its three directoratesgeneral con- cerned with land communications(DGLC), sea communications(DGSC) and air communications(DGAC). The highway network is admini-teredby the public works agencies of the various tiers of government. At the central level, the DirectorateGeneral of Highways (DGH) has primary responsibilityfor national roads and for setting expenditurepolicies and operationalguidelines. The provincial and district/municipalitypublic works departmentshave responsi- bility for provincialand district/municipalroads respectively. A public toll roads corporation,PT Jasa Marga, was establishedin 1978 to construct and operate toll roads (para. 2.3).
1.6 Planning. For highways, the planning and programmingresponsibili- ties are concentratedwithin two DGH directorates,the Directorateof Planning and the Directorateof Urban Roads. The planning of district road investments is essentiallythe responsibilityof the districtsthemselves within the frameworkof overall guidelinesand a funding envelope set by the Central Government. MOC's SecretariatGeneral, through its Bureau of Planning plays a crucial role in the planning for civil aviation,maritime, rail, inland water- ways, and ferry transportalong with the programs for road traffic and trans- port by guiding and coordinatingthe preparationof inputs by the planning divisionsof each of the modal DirectoratesGeneral of MOC. 1
1.7 The transportsector planning process is largely governed by the national planning,programming and budgetingprocedures. Medium-termplanning focuses on the national five-yeardevelopment plans (Repelita)while short- term investmentprogramming is tied into the annual developmentbudgeting cycle. BAPPENAS manages the process by guiding aDd coordinatingthe prepara- tion of inputs by individualsectoral ministries, regional governmentsand other agencies. The five-yearplans were first introducedin 1969 and tha fifth plan will cover the 1989/90 to 1993/94period. These plans define broad developmentobjectives and over time have become more explicit in terms of physical targets for neu investments. The plans, however, are essentially static. While substantialresources are devoted to their Initial preparation there is no formal provision for mid-term or annual reviews/updating.Conse- quently, the annual componentsof the plan tend to lose relevanceduring the later years as economic and other circumstancesdeviate from those underlying plan preparation. Planning as part of the annual budget cycle has tradition- ally focused narrowly on individualprojects and has been weak in terms of priority ranking and overall coordinationof investments. This, however, is being remedied in the highway subsector (para. 2.24).
1.8 In recent years the Governmenthas devoted considerableresources to improvingtransport planning and in the highway subsectorthese efforts are beginning to bear fruit. In general,however, planning is hampered by the poor quality of data and information. Data sources are generallyfragmented and incomplete and their reliabilityis poor.
C. GovernmentObjectives and Policies
1.9 Role of Transport. The Governmentassigns many functions to trans- port. Emphasis is h-en, however, to the kqy roles of serving the needs of the productive sectors and to opening up relrte areas and providing access to otherwise isolated communities. Furthermore,successive five-year development plans have stressed that the transport system as a whole should foster per- sonal mobility and the smooth flow of goods and that transport services should also be affordable,fast, regular, safe and reliable. While these plans have made increasingreferences to the need for efficiencyin transport,the mean- ing of the concept and how it is to be achieved has not been clearly spelled out.
1.10 To achieve its sectoral goals, the Governmenthas traditionally exercisedextensive control and relied heavily on public involvementin the sector. Not only is the provision and upkeep of the transportinfrastructure in the hands of the public sector,but severalmajor state enterprisessuch as the State Railways,Garuda IndonesianAirlines, Pelni (the largest interisland shipping company), and PPD and Damri, the two largestbus companies,are engaged in providing transportservices. In recent years, however, the Government has begun to relax its controls and to dezegulate.
1.11 InfrastructureDevelopmant. At independence,the government inheriteda comparativelylimited but ouce reasonablyefficient transport system which had been permitted to run down. Despite initiativesin some areas, the next two decadeswere generally characterizedby continuingneglect of infrastructureand equipment. Repelita I (1969j70-1973/74)made the reha- bilitation of the transport systenmone of its highest priorities. During the followingtwo national plans, rehabilitationcontinued to receive attention but the main focus changed to the expansion of capacity and the extensionand improvementof services. Economic growth was rapid during the period covered by these two plans and greatly increasedgovernment revenues from oil and natural gas were applied to massive public investmentprograms. Increasing weight was also given to openingup remote areas and to the developmentof pioneer transportto serve isolatedcommunities. In the process, public sector employmentexpanded considerablyand large subsidieswere provided to cover operatingdeficits incurred by state enterprises. The fourth plan (1984185-196!89) gave a somewhat lower priority to Lransportas it was drawn up at a time when weakeningworld prices and uncertainworld markets for Indonesia'straditional export productswere placing growing pressures on foreign exchange earnings and on government revenues,while at the same time, rapid growth in the work force required strong expansionof job opportunities. The actual share of transport in total developmentspending during the fourth plat.,however, turned out to be higher mainly on account of rapidly increasing expenditureson roads (para. 1.26). The emphasis on transport,and on roads in particular,will continue during the fifth plan as part of the Government's strategy of supportinggrowth in the private sector by providing adequate infrastructure. In parallel, outlays for maintenanceare being increasedin order to maintain and improve the quality and productivityof the sizeable investmentsin transport infrastructuremade in the past.
1.12 RegulatoryPolicies. In addition to giving high priority to ade- quate transportcapacity, until recently the Government'spolicies in the sector relied heavily on extensive regulationand on central control of investmentsand operationsof both public and private enterprises. This approachwas particularlypronounced in the maritime subsector. The restric- tions and regulationshave had a detrimentaleffect on the optimal use of resourcesavailable to the sector and have stifled competitionand innova- tion. Regulation and controlswere not guided by a clear set of principles and tended to be a legacy of ad hoc measures taken in the past, the result of overzealousbureaucratic endeavors or influencedby special interests. While the overall regime which evolvedhad many featuresof the market system, the numerable restrictionsimposed on producersand consumersof transportser- vices seriouslyundermined the functioningof the market mechanism and had the effect of raising costs. In 1985, when the government realized that its transportpolicies affecting internationaltrade were severely impeding rather thaLLfacilitating the developmentof non-oil 'xports,sweeping deregulation measures were taken involvingthe contractt 3ut of customs services to a private organizationand the opening up of - a major ports to international traffic. This was followedby further subst,.ntialderegulation of the shipping industry in November 1988. The segmentationof the shipping industry in separate categorieswas abandoned, restrictionsto entry and route licenc- ing were eliminatedwhile procedureswere simplified. Government is now preparing for the modernizationof the legal and regulatoryframework for road transport (para. 3.2)
1.13 Pricing. Up until recently,the Governmentwas heavily involved in pricing of transportwhether servicesare provided by the public or the pri- vate sector. While most prices of transportservices were either set by the Government or needed Governmentapproval, only a limited role was assigned to pricing as a tool towards efficiencyof resource allocation in transport. In the case of state-ownedfacilities (roads,ports), pricing decisionshave primarily been influencedby considerationsunrelated to transportsector efficiency,such as resourcemobilization, fighting inflation,promotion of trade, trade protection and perceivedability to pay. In general, equity considerationshave also played an importantrole. Since the mid 1980s, how- ever, the Government'sfirm grip on prices of services provided by the private sector has been relaxed and prices for freight servicesby road and maritime transport are now set by the market. The railway company is not yet totally - 5 - free to negotiate prices with its major (state enterprise)clients. With respect to cost recovery of basic infrastructurein the roads (para. 2.13) and ports subsectors,only limitedprogress has been achieved.
D. Sector Performance
1.14 Owing to the high priority given by governmentto infrastructure development,the sector has been able to meet the rapidly growing transport needs of the economy. Also, the geographicalcoverage and availabilityof services improved considerably. While the physical capacity of the sector is generallyadequate for the medium term (exceptin a few high density corridors),its performancecould be better. First, in terms of economic efficiency,there is scope for improvemeat. Inefficienciesare found not only in the operationof the individualentities providing infrastructureor trans- port services--transportoperators, state enterprises,government agencies-- but also in the way the modal and intermodalsystems function as a whole. Second, from the standpointof the users of transport services--shippers, passengers and vehicle operators--thequality of transport servicesand the responsivenessof the industry can also be improved. The shortcomingsin operationalefficiency and quality of services result mainly from GOI's sector policies which in the past have given excessiveemphasis to regulationand control. Inadequate efficiencyin the functioningof the road, maritime and air transportsystems and in intermodaltransport result mainly from poor coordinationin policies on infrastructuredevelopment and maintenanceon the one hand and policies governingthe use of the infrastructureby transport operatorson the other. In the road subsector,which is the dominantmode, the potential for significantimprovements in the short to medium term is greatest because the probleme are well understoodand .;heGovernment is committed to resolve them (paras.2.41 and 3.1).
1.15 GOI has been aware of many of the shortcomingsin sector perfor- mance and hae taken importantmeasures in several areas in recent years. In particular,budgetary allocationsfor road maintenancewere increased (paras. 2.26 and 2.33), the execution standardsof road works have improved (para. 2.28) and the maritime subsectorwas deregulated. However, measures in some key policy areas affectingthe efficiencyof the sector as a whole have been rather piecemeal and several policies in areas that are interdependent remain uncoordinated. GOI has now also come to recognizethe need for better and adequately coordinatedpolicies in the road subsectorand, drawing upon policy studies and preparatorywork carried out during the past few years, has taken steps to reformulateits policies in key areas (Chapter3). The pro- posed project would assist GOI in refiningand implementingthese policies.
E. ExperienceUnder Previous Bank-FinancedProjects
1.16 The Bank has assisted Indonesia'stransport sector through four maritime projects (two shipping and two port projects),two railway projects, two fertilizerdistribution projects and ten road projects. The involvement has been particularlyheavy in the road subsectorwith lending of more than US$1.2 billion since 1969. The first five road projects dealt primarilywith national roads, while subsequen.projects addresseda broader range of needs, includinginstitutional strengthening both at the central and local levels. Two projects dealt with highway maintenance/betterment,two with district roads and one with toll roads. Over time the emphasis has shifted from con- structionor reconstructionto road maintenance,continued institution building, and sector policies in general.
1.17 Seven projects have been completedand Project CompletionReports (PCRs) or Project PerformanceAudit Reports (PPARs)have been prepared for the first five projects. A PCR for the First Rural Road project has also been completed. The first four projectswere judged to have been successful. Problems highlightedin the ex-post evaluationwere substantialcompletion delays combinedwith cost overruns. The PCR and PPAR for the Fifth project fcund that implementationof the road improvementworks was moderately successfulbut that there were considerableimplementation delays. The result of the project componentsaimed at strengtheningsector institutionsand improvingpolicies, however, were limited. Inadequatepreparation and lack of follow-upduring implementationwere found to be the major causes for the poor results. The two highway maintenanceand bettermentprojacts (approvedin FY 1984 and FY 1986 respectively)have benefitted from lessons learned from these projects and have been instrumentalin directingthe emphasis in expenditure programs toward maintenanceand in introducingexecution of maintenancework by contract. They have also contrib'tedto strengtheningthe capacity for planning, programming and executing comprehensive work programs with increas- ing delegation of responsibilities to lower level agencies (paras. 2.24 and 2.29).
F. Role of the Bank and Lending Strategy
1.18 By improving its efficiency and responsivenesstc the needs of the productive sectors, the transport sector will help Government'sefforts to restructure the economy. The Bank has a role in assisting GOI to design and implement the necessary programs and policies aimed at correcting shortcomings in sectoral performance. Ongoing projects concentrateon improvingthe efficiency in highway construction and maintenance and in port and railway operations. While this emphasis on operational efficiency will continue, future projectswill have a more pronouncedand broader subsectoralapproach. Measures taken in the last few years and the findings and recommendationsof the Bank's recent transport sector work 1/ suggestthat a more efficient developmentof the sector can be achieved by addressing issues on a subsector (ratherthan project) basis, in particular,in terms of compositionand level of expenditures,institutional strengthening, and improvementin subsector policies. Thus, the Bank'sapproach in the highway subsectorfocuses on measures in these three key areas and the proposed project is designed to assist the governmentwith needed improvements. Sector work and project financed studies are underway or being programmedto deepen the Bank's under- standing of needed measures and reforms in other subsectors. In parallel, greater attention is being given to questionsof intermodaltransport.
1/ Indonesia,Transport Sector Overview,July 25, 1988. Indonesia,Highway MaintenanceReview, July 29, 1988. - 7 -
2. THE ROAD SUBSECTOR
A. The Network
2.1 Indonesia'spublic roads network has been expanded rapidly in recent years, from about 136,000 km in 1979 to a total of about 244,00 km 2/ in 1988, accordingto preliminaryresults of an ongoing reclassificationeffort (nationalroads: 16,800km;provincial roads: 32,900 km; district roads: 154,200; municipal roads: 34,800 km; and transmigrationroads: 5,300 km; see Table 2.1). This growth occurredmainly in the district roads (832 since 1979) and resultedmore from absorptioninto the network of existing but unclassifiedroads rather than from new construction,which has been limited in the last severalyears as the emphasis for all road classes has been on rehabilitationand improvement. There is, however, scope for furthernetwork growth in the medium and long term, as roed density in Indonesia is still very low at 130 km/l,000 sq km and 1.5 km/1,000 population(Table 2.2).
2.2 The conditionof the netwforkhas improved steadily since rehabili- tation began in 1969. In 1988, about 432 of the total public roads network was reported paved (832 of national roads, 66Z of provincial roads but only 292 of district roads, see Table 2.3); compared to about 33Z in 1980. Con- dition surveys show that some 502 of the national and provincial road network and over 80X of its bridges are in good and fair condition3/ (Table 2.4) with the remainder requiringrehabilitation or reconstruction,indicating a significantbacklog of such works. The scarce data availablefor district roads suggests that only some 202 may be maintainable.
2.3 In addition to the public roads network, there are also eleven sec- tions of toll roads of 2-6 lanes, with a total length of 280 km. and six toll bridges, with a total length of 1,800 m, being operated by the state enter- prise PT (Perqero)Jasa Marga. Another three sections of 70 km length are under constr. tion. More than half of the length of toll xoads serves Jakarta and some sections are within the city. Other sectionsare bypasses of impor- tant cities and a few are interurban. All toll roads are in Java, except for one in Swmatra. All of these roads are in good to excellent condition.
B. Road Transport
Traffic
2.4 Motor Vehicle Fleet. There were 7.3 million motor vehicles regis- tered by the end of 1986 and about 702 (5.1 million) of these were motorcycles (Table 2.5). Commercialvehicles--buses and trucks--accountedfor 592 of four-wheelmotor vehicles with cars making up the remainder. The fleet has grown rapidly in the last 15 years, averagingaround 142 between 1974 and 1983
2/ There are also unknown lengths of village roads and other unclassified roads in transmigrationand other developmentschemes. f-
3/ Roads with an IRI (internationalroughness index) of 8 m/km or less are considered in fair and better condition. and slowing to around 8? since 1983. Numbers of buses, motorcyclesand trucks have grown fastest.
2.5 Traffic Volumes and Growth. Annual vehicle-kmon the intercity national and provincialnetwork 4/ amount to about 29 billion, about 16 bil- lion (56X) on national roads (totalling16,800 km or 342 of the network) and 13 billion (44Z)) on provincial roads (totalling32,900 km) (Table 2.6). About 50X of all vehicle-km on this network are in Java and Bali which account for only 19Z of its length. Mean traffic volumes in average annual daily traffic (AADT) on this network also vary considerablybetween regions, from about 200 vpd in the Outer Islands to 1,300 in Sumatra and nearly 4,000 in Java/Bali (Table 2.7). The highest traffic flows occur on approach roads to Jakarta, Surabaya and Bandung, some of which are toll roads, where volumes range from 40,0O0 up to 110,000 vpd. In step with the increase in vehicle fleet, traffic growth has been rapid but declining overall in the last few years. The growth rate is lowest in Java and Bali while high rates (10Z ar.d over) still prevail in the Outer Islandswhere improvementsof the poor road- result in considerablegenerated traffic. Road capacity problems are developing in some major corridors,such as Java's north coast road between Merak and Surabaya,and significantcapacity increaseswill be requiredwithin a few years.
Traffic Safety
2.6 Road traffic accidentsare a serious socioeconomicproblem in Indonesia. The limited data availableindicates about 11,000 fatalitieswhile nearly 50,000 are seriouslyinjured annually. Although fatality rates seem to have been declining recently,they are still 7-8 times higher than in most industrializedcountries. Studies financedunder previous highway projects have identifiedthe major causes as: inadequaciesin laws and regulations regardingvehicles and traffic and deficienciesin their enforcementby the police and deficienciesin the standardsand zonditionof roads. The Govern- ment is beginning to address the most critical road safety issues (para. 3.8) and meaRures for improvementsin road safety are included in the proposed project (paras.4.10-4.13).
The Road TransportIndustry
2.7 Structureand Performance. Own account operations,by both private and publicly owned companies account for more than half of total road trans- port. The majority of the for-hire operatorshave only a small number of vehicles (1-5 trucks) but in Java and Sumatra there are a number of operators owning large fleets (40 or more trucks). The for-hire road transportindustry is competitiveand road transportis generallypreferred to other modes for the movement of non-bulk freight over short, medium and long distanceson account of cost, speed and reliabilityconsiderations. While the industry is generallyresponsive to users' requirements,there is scope for improvements in operationalefficiency, in the quality and diversityof services being offered, and more generally in meeting the requirementsof intermodaltrans- port associatedwith the export trades. Interurbanbus services are operated
4/ Available data on other roads does not permit reliable estimatesof vehicle-kmon those roads. by the private sector and are also reasonablyefficient. On the trunk routes services are frequent and fast given variable road conditions. There is jus- tified concern, however, over safety standards. Urban bus services--whether operated by the public or private sector--suffermany shortcomings. Over- crowding is the norm during peak hours, cleanlinessis a problem and break- downs are common. These problems are beginningto be addressedwith assis- tance under the Bank's urban projects. Tariffs for for-hire trucking are no longer regulatedand vary considerablydepending on factors such as commodity type, availabilityof return loads and route. For bus transport,tariff con- trols are generally observed and companiescompete on quality of service.
2.8 Economic Regulation. The relativelysatisfactory performance from the users' point of view of trucking and interurbanbus transportis related to the competitiveconditions generally prevailing in the industry as a result of ease of entry in the market, the relativelyflexible enforcementof con- trols and regulationsand more recentlythe relaxationof tariff controls. A public transportoperator's license, issued by the district government,is required for the operation of freight or bus services. Bus companiesrequire, in addition, a license to operate specific serviceswhich are to be granted depending on supply/demandconsiderations. For trucking operationsacross provincialboundaries in Java, a route license is also requiredwhich was originallyintroduced to protect rail transport. While the economic regula- tions as relaxed over the years are not causing major distortions,the way they are interpretedor applied increasesoperators' costs as the various licenses can generallybe obtainedwith the payment of supplementarylevies.
2.9 System Efficiency. From the broader economic point of view, condi- tions in the road transport industry are not as efficientas they could be. First, Indonesia is not taking full advantageof the importantgains which could be derived from the greater use of large multi-axledtrucks operatingon a strongly built and well maintainednetwork. Second, overloading (mainlyof 2-axle trucks) beyond the structuralcapacity of existing roads is widespread causing serious road damage. These deficienciesare mainly the result of inappropriatepolicies on road use, in particularthe vehicle/axleweight and dimension regulationsand the level and structureof road user taxation (paras. 2.13-2.14).
2.10 Vehicle weight and dimension rules are contained in fragmentedand largely outdated laws and regulations,the inadequacyof which is compounded by ambigtxitiesand omissions in the formal assignmentof responsibilitiesfor their enforcement. The limits are overly restrictive,although the reverse tends to be true of those relating to vehicle safety features ard conditions. The maximum single-axleload limit is 8 tons while a limit of 10 tons would be more reasonable. The current vehicle height limit of 3.5 meters has not changed since the 1930s and precludes the legal movement of ISO containerson a conventionalchassis.
2.11 Despite weighbridge statisticsto the contrary, overloadingis widespreadthroughout the country. Containersare moved freely on roads in the vicinity of the major ports, often using inadequatevehicles, on the basis of a regime of dispensationsto the rules. Clearly, the introductionof modern rules and regulationswhich are enforceableis long overdue. - 10 -
2.12 Regulatory Reform. Preparatory work for the modernization of the legislative and regulatory framework covering the road transport industry, vehicle weights and dimensions and road traffic and safety has been ongoing for several years and a proposed new law and regulations are now being reviewed. Government is committed to have the new regulatory framework in pluce by early 1990 (para. 3.2).
Road User Taxation
2.13 Indonesia applies all three main forms of road user taxes: (i) pur- chase related (import duty. VAT and in some instances luxury goods sales tax on new vehicles, and the ownership transfer tax when vehicles change hands); (ii) ownership-related (the annual registration fee); and (iii) use related (import duty and VAT on spare parts, tires and lubricants). In addition, the pump price of gasoline includes a tax element. In the past, total Government revenues from road users have not covered total expenditures on roads except in FY1986/87. Moreover, there is a serious imbalance in the taxation struc- ture as more than 90Z of tax receipts accrue from small gasoline-engined vehicles. Heavy goods vehicles which cause most of the road damage and require the construction of strong pavements, contribute very little to their road wear and tear costs. This distortion, which is a long-standing feature of the road user taxation system in Indonesia, mainly arises from the fact that the principle of cost recovery has so far only played a minimal role in taxation policies. Decisions on the structure and level of road user taxes have been made primarily on grounds of resource mobilization, trade and industrial policy, anti-inflation policies and perceived ability to pay. An important reason for this is no doubt that decisions on the various road user taxes are made by different Government departments. Interdepartmental coor- dination is clearly important in t.e formulation of road user taxation and this has been lacking in the past.
2.14 In Indonesia, the fuel tax and the annual vehicle registration tax- -which are the two most commonly used instruments to achieve cost recovery from heavy road vehicles--are too low and are not appropriately structured. In particular, the pump price for diesel oil includes a subsidy element when compared to economic costs, and, the structure of the annual registration tax for heavy goods vehicles does not reflect the relative road wear and tear of these vehicles. As a result, rigid two-axle trucks, which represent the majority of goods vehicles, carry loads which from the point of view of the road system would more economically be carried by multi-axled vehicles. An increase in the diesel oil price to cover border prices, transportation and distribution costs, plus a modest road user tax element would nat be suffi- cient to compensate for the low annual registration fees which are based on age and engine size. A restructuring of registration fees which encourages vehicle configurations and axle loads which ere efficient from the point of view of the overall road transport system is needed. The basic studies out- lining the required changes have been undertaken and the Government has begun to tackle the implementation aspects (para. 3.6). - 11 -
C. Highway Administration
2.15 The highway network is administeredby the public works agencies of the various tiers of government in accordancewith institutionaland func- tional responsibilitiesfor the developmentand operationof highways. These responsibilitieswere broadly defined in the Road 'aw of 1980 and in imple- mentation regulationsof 1985. DGH is the highway agency at the central level 5/ (Chart 2.1), while agencies at lower levels are, respectively,the provincialpublic works departments(Dinas PekerjaanUmum Propinsi-DPUP)and the district/municipalitypublic works departments (DinasPekerjaan Umum Kabupaten/Kotamadya-DPUK)(Chart 2.2). Toll roads are developedand operated by P.T. jasa Marga.
2.16 The DGH is responsiblefor the design and executionof most major road works in Indonesia. It also coordinatesthe betterment,maintenance and minor constructi_nprograms which are carried out by the DPUPs and it operates a national highway equipmentpool. In the last few years, DGH has become increasinglyinvolved in assistingwith the managementof the district road programs.
2.17 Provincialand district road agencies are administrativelyunder the Ministry of Home Affairs (MBA) (Chart 2.3), which is responsible,through the Governor, for regulatingand monitoringthe performanceof local authorities. It also controls appointmentsof their senior officials, regulatesstaffing and salaries, reviews their developmentplans, budgets and financialperform- ance. For technicalguidance, these road agencies have access to DGH. How- ever, in practice this setup results in overlappingof responsibilitieswhich undermines accountabilityand creates inefficiencies.
2.18 Theoretically,the various provincialpublic works functionsare handled by separate departmentswithin the DPUPs; for roads it is the Sub- Dinas Bina Marga (DBM). These departmentsare being establishedin provinces where administrativecapabilities are well developed. In other provinces staff and equipment for the various DPUP functionswill continue to be shared until managerial skills are sufficientlydeveloped for effectiveprovincial highway management. DPUPs report directly to the governor of the province but the MPW provides the DPUPs with technicalguidance and some administrative support and they act as the implementingagencies for many of the Ministry's functions. In order to overcome the shortcomingsin highway managementat the provinciallevel, DGH has establishedRegional BettermentOffices (RBOs)which design and supervisehighway betterment schemes,but these will be phased out as provincial highway managementimproves.6/ Assistancein developinghighway management skills at the provinciallevel is being provided under the Highway Maintenanceand BettermentProject (Ln. 2717-IND) and furtherassistance, with specific focus on establishingpermanent technical liaisonwith the DPUKs, is provided under the Second Rural Roads DevelopmentProject (Ln. 2881-IND).
5/ MOC has overall responsibilityfor regulatingroad traffic and the road transport industry and is involved in related implementationand enforcement (see para. 1.5).
6/ Some have been reorganizedas semipermanentrecently for they have been given an echelon grading. - 12 -
2.19 Responsibilityfor the developmentand maintenanceof district roads, in conjunctionwith the DPUKs, lies with the DevelopmentBureaus (Biro Bangda) and the District Planning Boards (BAPPEDAII) of the District Secreta- riates. The DPUKs report directly to the heads of the district (Bupati). Despite weak capabilities,the districtshave virtual control over their roads.
2.20 The GO.tis planning decentralizationof many of DGH's functions, includingtranafe. of appropriatestaff, to the DBMs. These would eventually include the pzogramming,budgeting, design, execution,supervision and moni- toring of all programs for the provincialroads networkwithin each province, while DGH would retain the functionsof nationwideplanning and monitoringas well as overall quality control and the issuing of economic criteria, tech- nical standardsand specificationsand appropriatemanuals. The DBMs would be strengthenedand reorganizedinto four units fort (i) planning and design; (ii) betterment; (iii)bridge replacement;and (iv) road maintenance. Detailed plans are being finalizedand the proposed projectwould provide assistanceto DGH and the DBMs for an efficienttransfer of functions (paras.4.8, 4.16, 4.17).
2.21 At present, P. T. Jasa Marga's functionsare effectivelyrestricted to the operationand maintenanceof toll roads and bridges. Although its charter provides for it to handle also the developmentof the toll road net- work, planning and design still remain in DGH. This may change,however, as GOI's policy is now to develop toll roads through public/privatejoint ven- tures of the build-operate-transfer(BOT) type.
2.22 In addition to the agenciesmentioned above, other institutionsare involved in road developmentin the rural areas, particularlythose concerned with agriculturaland transmigrationschemes. The road componentsunder these schemes,however, are not adequatelycoordinated with the road authorities, and their planning and implementationhas suffered from many weaknesses. The Second Rural Roads DevelopmentProject includes a study to analyze and make recommendationson: (a) design, construction,and maintenancestandards for road componentsof developmentschemes; (b) institutionalresponsibilities and processes for programming,budgeting and implementingthe road programs of developmentschemes (includingtheir maintenance);and (c) the process of transferringthese roads to district and provincialauthorities, to ensure, inter alia, that adequate funds would be budgeted for their maintenance -nd rehabilitation,and that the capabilitiesof local authoritieswould be upgraded as required for their additionalresponsibilities. The study's recommendationswould be implemented,as appropriate,through subsequentagri- culture or highway projects.
Accountingand Auditing
2.23 The DGHs accountingprocedures are adequate. Accounts are audited both internallyand externally. The MPW's InspectorateGeneral, which reports directly to the Minister, does the internal auditing of DGH. The State Audi- tors (BPKP) do the external auditing;these audits are satisfactory. The Regional and ProvincialInspectorate of MHA audit the district and provincial accounts internally;the BPKP does the external auditing. - 13 -
D. Highway Planning and Financing
Planning and Programming
2.24 Preparation of multi-year plans for national and provincialroads is the responsibilityof DGH and, more specifically,its planning directorate, Bipran. Preparationof annual work programs and budgets is shared between Bipran and the DBMs with BAPPENAS and the BAPPEDA I playing a key coordinating role. This takes place within the context of GOI's long and complex budget process. Considerableefforts have been expended in the recent past to put in place a comprehensiveroad management system (RMS) for planning,programming and budgeting (PPB) as well as designingmaintenance and bettermentworks (paras. 5.4 to 5.8). For this purpose systematicprocedures have been put in place to collect traffic and road conditiondata and sophisticatedmodels (the World Bank Highway Design Model in particular)have been developed and/or integratedwith existing systems to define work prioritieson a sound tech- nical and economic basis and prepare preliminarydesigns. Although substan- tial improvementsin data collectionand some refinementof the models are still needed and more staff at all levels must learn to use the RMS effec- tively,which the project would support, Indonesianow has an adequate capa- city to prepare maintenanceand bettermentprograms for its national and provincial road network. While these efforts are consolidatedin the coming years, attention should also be brought to the planning and programmingof other types of work, mainly major upgradingof roads and bridges and new con- struction (includingthat of high capacity roads),which have been given less attentionand are not well integrated in the overall PPB process so far. Actions in these areas have already been satisfactorilydefined: (i) DGH has started to set up a bridge management system under Australian bilateral fund- ing which is expected to be completedby mid-1992; (ii) DGH also plans to strengthenits capabilityto evaluate the feasibilityof road constructionand upgrading proposalsby the end of 1990 under support from the proposed proj- ect; this would give DGH the capacity to plan adequatelythe relatively large expenditureswhich will be needed starting in about three to five years to accommodatetraffic growth on many parts of the network; (iii) several studies already planned under separateprojects (para. 3.18) are expected to help GOI establisha strategy for addressingemerging congestionproblems on the few most importantarteries.
2.25 District officialshave primary responsibilityfor drawing up the district road programs based on guidelines and within a funding envelope determinedby central government. Early attempts to improve planning started with the introductionof the Inpres Jalan Program in 1979/80 and were supportedby external funding agencies e.g., the Bank's First Rural Roads Project (Ln. 2083-IND). The effortswere not very successfulmainly because the institutionalcapabilities and the scope and extent of required changes in procedures and attitudesat the district level had been severelyunderesti- mated. Thus, inadequatearrangements were made for strengtheningthe planning capabilitiesof district staff and introducingthe new approaches. This was the case in particular in respect of training,transitional provisions, bud- gets for forward planningwork and incentivesto adopt improved proceduresat the district level. At present, practices are not yet satisfactoryand, except in a number of districtsassisted by external donors, annual road programs are not formulatedon the basis of systematicnetwork surveys. The Government,however, is aware of the need to continue improvingthe district - 14 - road planning process and several significantimprovements have already been achieved, i.e., funds are now being allocatedin the annual budget for plaining,guidelines have been developedand arrangementsfor assistancefrom provincialhighway offices to district staff have been set in place. The Second Rural Roads Project is assistingwith the developmentand testing of appropriateapproaches suitable for adoption in the entire country.
Expendituresand Financina
2.26 The total volume of highway expenditures,their allocationto the various road types as well as the structureof their financinghave changed rapidly over the past few years. First, as indicatedin Table 2.8, total expenditureshave increasedconsiderably in absolute volume and as a percent- age of GOI's developmentbudget. With about 22? of developmentexpenditures spent on roads in 1988/89, Indonesianow compares favorablyto most of its neighbors. It is a positive sign that despite a period of austere budgets, GOI has given high priority to its road network. Second, a good part of the increase has very soundly benefitednational and provincialroads and particu- larly maintenanceand bettermentactivities. Expenditureson district roads and toll roads have also increasedconsiderably. Given that these started from a relativelylow basis, they have in fact increa ed more in relative terms and now account for a higher share of total highway expenditures. Third, the structureof road financinghas also changed drastically. Given the acute shortage of resourcesof the past few years, local funds have con- tributed little to the increase in expenditures. The local funding of expen- ditures on national and provincial roads has even dropped substantiallyir. real terms. On the contrary,foreign funds have increasedvery sharply from 19? to 65? of total road financingbetween 1984/85 and 1988/89. The change has been particularlyimportant for national and provincialroads, with the share of foreign funds increasingfrom about 222 to about 79? of total expendituresduring the same period. As a result, any project on these roads of a nonroutinenature is now dependenton the availabilityof foreign funding. It has thereforebecome of vital importancethat all foreign financed programs on national and provincialroads be directed toward first- priority activitiesand coordinatedthrough a comprehensiveexpenditure plan.
E. Highway Design and Construction
2.27 Design of highways and bridges for the national roads and major works for the provincial roads network has been the responsibilityof the engineeringsections of the DGHs Directorateof Planning Includingthe nine RBOs. The DBMs have been responsiblefor the design of lesser works on pro- vincial roads and the DPUKe for all design for district roads, while DGH, upon request, provides technicalassistance to both for the design of roads and bridges in their programs. Most of the work is done by consultantsand increasinglyby local consultants. Initial road design has been simplifiedin orde: to cope with the large program for rehabilitation/bettermentof recent years through a computerizeddesign system and limited field data. These designs are then checked, updated and refinedby the supervisingteam just before constructionwhich needs to be done in any case because of rapid dete- riorationand the time lag between initial design surveysand start of con- struction. As a part of the planned decentralizationefforts, DGH intends to transfermost design responsibilitiesto the DBMs, but details of these - 15 - arrangementshave not been finalized. The proposed project provides assistance for design to DGH and the DBMs.
2.28 Quality of roadworks is graduallygetting better due to improving specifications,contractor capabilitiesand supervision. Design and construc- tion standardsand specificationsused for national and provincial roads are generallyadequate for the class of road, terrain and volume of traffic (Table 2.9). Under the Second Rural Roads Project DGH is also establishingstandards for district roads. However, as all of these standardsand specifications have been establishedover a rather long period as the need has arisen, the proposed project provides assistance to review them, update, and revise them in their entirety to provide state-of-the-artstandards and specificationsand to ensure uniformity and compatibilitywithin and between all road classes (paras. 4.21). To improve quality and reduce cost of constructionand main- tenance through improved specifications.increased use of local materials and faster transfer of technology,DGH has contractedwith the Instituteof Road Engineering (IRE) in Bandung (one of three institutesof MPW's Agency for Research and Development)and independentconsultants to carry out various studies and testing programs under ongoing highway projects. The proposed project provides assistance to continue this importantwork (para. 4.21).
2.29 Responsibilityfor highway constructionlies with DGHs three Regional ImplementationDirectorates for the national roads and some of the major works on provincial highways;with DBMs for the provincial roads and some of the minor works on national roads; and with DPUKs for the district roads. Under the planned decentralization,the DBMs will take over more of DGH's responsibilities(para. 2.20). The works are executed under a variety of arrangements. Executionby force accountwas the most common arrangementa few years ago but has by now nearly disappearedand been replaced by contract- ing arrangementswhich have proven considerablymore cost-effectiveand should now be the rule except for very limited emergencysituations in the outer islands. Still common for minor constructionis. however, the use of small contractorswho supply labor and local materials but use equipmentand some- times manufacturedmaterials suppliedby the respective road authority. Some ten years ago Indonesiahad a relativelysmall number of experiencedcontract- ing firms capable of executingmajor road works, and thereforeDGH used mainly foreign contractorsfor such jobs. Since then local capabilityhas developed so that there are now about 400 "Al class (with no upper limit of contract price) and several thousand *BO class (eligibleto bid on contracts up to Rp 500 million (US$300,000)]local contractingfirms registered in Indonesia. In addition,there are many thousandsof small contractors,registered as class "CO (eligibilityceiling of Rp 100 million (US$60,000)]carrying out small contracts but also providing unskilledlabor and productionand transportation of materials for larger contractors,government agencies and the private sector.
2.30 GOI has long recognizedthe need to improve the capabilitiesof local contractors. Several studies carried out in recent years have high- lighted the sector's main weaknesses: (i) inadequateselection and contract administrationprocedures and poor contract documents; (ii) weak support institutions;(iii) lack of a supportivebusiness environment (particularlyin the areas of finance, insurance,equipment supply and standards);and (iv) shortage of skills and insufficientorganization and technicalcapabi- lities. GOI has taken actions to address some of these problems such as - 16 -
setting up and deliveringtraining programs for contractors'personnel, providing technicalassistance to contractorsunder several foreign funded projects, including road projects,and improvingthe system for licensing contractors. Recognizingthat a more comprehensiveapproach is needea to promote faster developmentof the industry,GOI is now preparing a broad pro- gram of actions to address all of the industries'weaknesses. Implementation of the program is expected to start in 1990 with suppoit from the Bank.
F. Highway Maintenance
2.31 Until recently,highway maintenancein Indonesiahas received low priority and executionhas been substandard. Problems includedboth lack of funds, technicalmatters, and personnelpolicies and have spanned the whole spectrum of planning, programming,budgeting, design, procurement,execution, supervisionand monitoring.7/ The resultingcost to the economyhas been high, as it is estimatedthat vehicle operatingcosts on deterioratedroads could be at least 252 lower if maintenancehad been given adequate priority. Recently, governmentpriorities have shifted in a significantway towardsmore and improvedmaintenance carried out by contract and state-of-the-artplanning systems for road programs are being put in place (para. 2.24). l 2.32 The DBMs (i.e. their road maintenanceunits when decentralizationis complete) and the DPUKs are responsiblefor all aspects of road maintenanceon the provincialand district road networks respect-ely and the operational responsibilityfor the maintenanceof national r - has been delegated to the DBMs. DGH, however, retains responsibilityfor natIonal planning of mainte- nance and, in practice,has a strong hand in the planning and upkeep of all road classes through the issue if technicalstandards and guidelinesand the channelingof funds for road programs.
2.33 Maintenanceexpenditures for national and provincialroads increased by about 1OZ annually during the first three years (1984185-1986/87)of Repelita IV (table 2.8). The amountswere, however, insufficientto ade- quately maintain the growing network until 1987/88when allocationswere increasedto cover estimated requirements. Planned maintenanceexpenditures for the network during Repelita V are consideredadequate (para. 3.11).
2.34 Until 1987, road maintenancewas mainly executed by force account with a major shift towards contractingin 1988 as a means of handling the much larger volume of work starting in that year. Although the quality of works sti'l leaves much to be desired, the shift to contractedwo.ks has been accom- panied by improved quality. The most common executionproblems have been: (i) lack 'f adherence to local procurementguidelines; (ii) poor supervision of contractorsin part due to lack of qualifiedpersonnel but also due to lack of budget and equipment to carry out supervisionproperly; (iii) lack of qual- ified contractors;(iv) somewhat inadequatestandards and specificationsfor maintenanceworks; (v) short contract periods; and (vi) inflexiblebudget.
2.35 Several measures for improvingexecution are underway or planned under Bank-assistedprojects. These include training of staff, including
7/ See Bank Report No. 7259-IND,Indonesia - Highway MaintenanceReview, July 29, 1988. - 17 -
supervisorsand project managers; strengtheningof the constructionindustry; and improved budgetingand monitoring. The proposed projectwill also provide funds to improve activities such as planning, programming, budgeting and designing (paras.4.15, 4.16), improved standards and specifications (para. 4.21), and further training. Ths use of multi-yearcontracts, even for annual programs like those for maintenance,has now been accepted by GOI.
G. Sta'f and Training
2.36 The steadily increasingvolume of work and the requirementfor higher quality of engineeringimposes strnins on DGH as well as on the DBMs and DPUKs. The DGH permanent staff has increasedby some 1lO annually over the last five years while the number of nonpermanentemployees has more than doubled over this period. Total DGH staff now exceeds 8,000, 4,000 of whom are permanent. About 1,500 are professionals(about 1,000 engineers). Many of DGH's staff are located in the provinces. Despite substantialefforts to expand and upgrade staff, the shortage of qualifiedpersonnel remains an importantproblem for road authoritiesat all levels. The situationthas become more acute with the change in skills mix requiredwhen force account works were replacedby contractworks.
2.37 Training continuesto be a major element in .)GHhuman resources management through both MPW's overall training activitiesand specificDGH programs. The MHA also has trainingprograms for administrativefunctions, and it occasionallyconducts training in developmentplanning for provincial and district staff. Ongoing highway projects are providing for both classroom and on-the-jobtraining of DGH, IRE, DPUP and DPUF staff. There is, however, a need for a more systematicand coordinatedapproach to the whole problem of human resource planning and training and assistancein this respectwill be provided under the Public Works InstitutionalDevelopment and Training Project, Loan 3112-IND (and a possible complementaryAustralian Aid project). The proposed project will also provide for training DGH and DBM staff (paras. 4.8, 4.15-4.17,4.26-4.29) and for transport industry staff (para. 4.30).
H. EnvironmentalAspects
2.38 Indonesiahas establishedgeneral laws and regulationsfor the protectionof the environmentwhich provide a framework for specific guide- lines and institutionaldevelopment measures now being devised and implemented by sector ministries. In this context,MPW has begun to give itself the capa- bility to carry out and review assessmentsof the cnvironmentalimpact of its civil works projects. ADB has in particularalready provided technicalassis- tance for this purpose to MPW. In addition,under its Tenth Road Project,ADB will provide technical assistanceto DGH to prepare environmentalguidelines and manuals and carry out training for DGH staff, consultants,alid contractors to adequately consider environmentalsafeguards in the design and construction of road works. Terms of referencefor this assistancehave been reviewed by Bank staff and found satisfactory.
2.39 Vehicle emission control, includingthe setting of standardsand implementationof programs, should form part of the GOI general air pollution monitoring and control efforts. With assistanceprovided under the Bank- assisted Jabotabek Urban DevelopmentProject, monitoring of vehicle-related i ~~~~~~~~~-18- air pollutionhas been initiatedand on this basis a national strategy for controllingvehicle emission will be developed. The Traffic and Safety Directorateof DGLC, created in 1989, is responsiblefor vehicle emission control and, through actions aimed at strengtheningDGLC, the proposed project will also help progress in this area.
I. Overall Efficiency in the Road Sector
2.40 Total costs of road transportconsidered as a whole are determined by policies on road constructionand maintenanceon the one hand and policies on road use on the other. These policies need to be formulatedin a coordina- ted manner. Although Indonesiahas already startedusing the much improved planning tools which have been developed in recent years for dealingwith these questions,current cost levels are still largely the result of past practices. Imbalancebetween allocationsof resourcesto categoriesof roads and types of activities (e.g. inadequatemaintenance), leads to higher vehicle operating costs for the economy over many years. Moreover, inappropriateroad designs in the past and poor standardsof execution (particularlyat the district level) combinedwith vehicle overloadinghave caused extensiveroad deteriorationwhich in turn also increasesvehicle operatingcosts. To secure the full potentialbenefits of the large highway sector outlays, the improved expenditurep;olicies ond implementationpractices will need to be pursued vigorously and be further refined.
2.41 Considerableadditional reductionsin tot.altransport costs can be achieved thtroughimproved road use policies,which are largely the responsi- bility of ti.eMOC. The inappropriatevebicle/axie weight and dimension regu- lations and the low taxation of heavy vehicles are not conduciveto the choice of efficient vehicles. Policy measures in these areas which are coordinated with road expenditurepolicies can now also be initiatedas the problems and their solutionshave been clearly identified. GOI has started tackling these problems in an integratedmanner and is committed to improve the overall efficiencyof the subsectoras describedin Chapter 3. - 19 -
3. ROAD SUBSECTOR POLICIES AND THE ROAD EXPENDITURE PROGRAH DURING REPELITA V
A. Objectivesand Scope
3.1 The Government'saim during Repelita V is to promote the development of a transport systetmwhich is capable of respondingefficiently to the nation's rapidly growing transportdemands. This requires that the different policies which have a bearing on the overall efficiencyof the transport system be improved and formulatedin a coordinatedmanner. Followinga cri- tical review of past policies and taking into account recommendationsof studies carried out in recent years, the Governmenthas prepared a comprehen- sive Policy Statementand Action Plan (PS&AP)which is to govern the develop- ment of roads and road traffic and transport in the medium term. Measures have been formulatedunder seven policy areas: (i) the legal and regulatory framework, (ii) institutionalstrengthening, (iii) intermodaltransport, (iv) road works planning, programminga&d execution, (v) road user taxation, (vi) vehicle weight and dimension limits, and (vii) road traffic safety. The PS&AP was formulatedby a working group with the participationof all con- cerned parties and the emphasis was placed on proper coordinationand integra- tion of policies and programs which span the responsibilitiesof severai.min- istries or departments. The focus is on interurbantransport. Timely implementationof the PS&AP will be of key importancefor improvingthe over- all efficiencyof the subsectorand for securing the full potentialbenefits of highway expenditures. Preparatorywork for measures to be taken in the near term is well advanced and subsequentmeasures have been carefully staged. The PS&AP was reviewed and agreed in draft by the appraisalmission and issued formally by letter dated October 9, 1989 from the State Minister of Planning/Chairmanof BAPPENAS. Agreementwas reached at negotiationsthat any material changes to the Action Plan would be made in consultationwith the Bank. In conjunctionwith the PS&AP, GOI is also planning a large volume of expendituresto improve the quality of its national and provincial interurban road network. To optimize the use of resources,GOI has prepared a comprehen- sive three-year expenditureplan and a 1989/90work program and budget which it intends to update annually (paras.3.10 to 3.16). Agreementwas reached at negotiationson annual implementationreviews of the Action Plan, and of per- formance under the FYs 1989/90, 1990/91 and 1991/92work programs and budgets no later than March 31, 1990, 1q91 and 1992. The main componentsof the PS&AP, the expenditureplan and the budgets are summarizedin the following. The full statementand action plan are shown in Annex 1.
B. Principal Policies
3.2 RegulatoryPolicies. The overall objectiveof these policy measures is to modernize and streamlinethe regulatory frameworkand thereby foster a more efficient and safer road transportindustry. This will be achieved through: (i) modernizingthe rules and regulationson vehicles and traffic to bring these in line with worldwide developmentsin road transportduring the past several decades; and (ii) eliminatingthe remainingrestrictive economic regulationsaffecting the road transportindustry and introducingquality licencingrequirements. Drafts of the new laws and regulationsas well as a regulationwhich would realign responsibilitiesfor these matters among agencies have been prepared and the introductionof the new regime is targeted - 20 - for the first half of 1990. Implementationwill be facilitatedfollowing the decentralizationof certain road traffic and transport functionsto be effected by end 1989 (para. 3.3).
3.3 InstitutionalReform. The object e of the institutionalmeasures is to improve the overall effectivenessand efficiencyof the agencies in the subsectorwith emphasis on DGLC. This will be achieved through: (i) reorga- nization and restructuringof DGLC; (ii) greater decentralizationcoupled with clearer delineationof responsibilities;(iii) upgradingof management,inter alia, through improved proceduresand training. A streamliningof MOC's regional representationwas already carried out in 1988. The restructuringof DGLC was initiated in May 1989 and is targeted to be fully implementedby end 1990 with completionof preparationof guidelinesand proceduresby mid 1991. In parallel,master plans for staff developmentand training and for improved inFormationsystems will be prepared (para. 4.24).
3.4 IntermodalTransport. The policy measures in this area are aimed at reducing total transportsystem costs through optimal use of existing infra- structureand facilitiesand in particularthrough fully exploitingthe com- parative advantageof each mode and the cost saving potential of intermodal transport. This will be achieved through an integratedapproach covering: (i) gradual eliminationof subsidiesdistorting the relative competitiveness of the modes; (ii) improvementsin operationalefficiency of rail and maritime transport; (iii) the coordinationof the above policies with infrastructure develor ent policies;and (iv) providing greater opportunitiesfor the private sectot zo operate and developwithin the streamlinedframework. Measures already initiatedinclude the establishmentof inland containerdepots and the deregulationof the freight forwardingindustry which has been given increased opportunitiesto become involved in intermodaltransport. In addition, specific actions planned include the carrying out of a land transportdevelop- ment study which would detail the overallpolicy rrameworkand outline future invostmentrequirements. A national origin-destinationsurvey which provides essential input for this study is already under way.
3.5 Road Works Planning,Programming and Execution. Measures under this policy area aim at maximizing the benefits of resourcesmade available for road works in the country as a whole. This will be achieved by (i) allocating resourcesto categories of road works (maintenance,rehabilitation/betterment, upgrading,capacity expansion)and to classes of roads primarilyon the basis of the economic return of the respectiveworks; (ii) pursuing the development of planning/programmingmethods and the improvementof technicalcapabilities including the productionof technicaland environmentalguidelines; and (iii) consolidatingthe decentralizationof implementationresponsibilities and the executionof works by contract. The developmentof rational systems and of an integratedframework for the planning,programming, budgeting and design of roadworkshas been underway for several years. The new systemshave already benefited the preparationof the three-yearexpenditure plan (para. 3.10) and the 19Sio90work program and budget and are planned to be used as the main tool for the preparationof the 1990/91 and 1991/92work programs and budgets (para. 3.15 and 3.16). Emphasis will also be placed on coordination of programs for road works with other measures and policies which affect the type and volume of traffic in particularcorridors. Guidelines for assessing and minimizing the environmentalimpact of road projects will be prepared by the end of 1991. - 21 -
3.6 Road User Taxation. The principalaim of the road user taxation policy is to help reduce overall costs of goods transportby providing incen- tives for goods to be transportedby more efficientvehicles or a more effi- cient mode of transport. A second objective is to raise additionalrevenues in particularat the regional level. More efficientchoices in the transport market will be induced through the progressiveintroduction of higher taxation of commercialvehicles (using a combinationof fuel pric6s and registration fees) which reflects as closely as possible the road wear and tear costs of these vehicles. The MOC Secretariatwill be responsiblefor preparing recom- mendationsin consultationwith other concerneddepartments and for coordinatingthe review. A team will be establishedto evaluate alternative options for implementingthe policy and to prepare detailed recommendations. Priority will be given to revising the annual vehicle registrationfees and relating these to the road deteriorationimpact of the various axle configura- -| tions. A first stage adjustmentof the taxes towards full coverage by heavy commercialvehicles of their attributableinfrastructure costs by end 1994 is targeted for December 1990.
3.7 Vehicle Weights and Dimensions (VWD). Policies in this area will contributeto reducing the total system costs of goods transportby permitting the operationof more economicalvehicle types and by containingthe road damage caused by heavy vehicles. In the short term (beforeend 1989) this will be achievedby legitimizingthe movement of containerson suitably con- figured vehicles on roads which can already accommodatesuch vehicles. For the longer term a coordinatedprogram of measures/actionswill be implemented covering: (i) revised regulationson vehicles and traffic (para. 3.2); (ii) road and bridge upgrading; (iii) revised systems for classifyingand marking vehiclec and routes; and. (iv) improvedenforcement of the regula- tions. The basic studies and proposalsfor revisedVWD limits have already been completed. Close consultationbetween the MOC, DGH, the Traffic Police, the vehicle manufacture/assemblyindustry and the truckers'association will be institutedfor review and subsequentimplementation of the proposals. The detailed action plan for implementationof the new VWD limits and associated vehicle and road classificationsystems will be prepared by end 1990.
3.8 Traffic Safety. The traffic safety policies aim at securing a rapid and significantreduction in accid(at rates and in the relatedhuman loss and physical damage. This will be achieved throughvarious programs covering: (i) priority black-spotreduction on interurbanroads; (ii) the upgrading of accident data collection,reporting and analysis systems; (iii) improvementin the capabilityof the Traffic Police through training,technical assistance and provision of equipment;and (iv) public awarenesscampaigns. The increasedimportance attached to safety is indicatedby the establishment within DGLC of a Directoratewith specificresponsibility for road safety and charg:d, inter alia, with promoting and coordinatingmeasures designed to improve road traffic safety by all agencies involved. Starting in 1990 the Directoratewill convene annual workshops on traffic safety in which all concerned organizationsand agencieswill participate. - 22 -
C. Three-yearExpenditure Plan for National and ProvincialRoads
Repelita V Context
3.9 Expendituresfor national and provincialroads account for a con- siderablepart of Repelita V, GOI's Five Year (1989/90to 1993194)Development Plan (Rp 8,361 billion in constant 1989 terms or about 1OX of all expendi- tures, which comrres to about Rp 4,500 billion or about 8? in the previous plan). This is reflectionof GOI's sustainedpolicy of the past years to place the improvementof transport infrastructureamong its primary objec- tives. Targets for national and provincialroads are very ambitious. GOI mainly plans to: (i) bring all roads, except those with very low traffic, to their *efficient condition,i.e. essentiallythe quality level which mini- mizes the sum of infrastructureand road user cost over time, or maintain them at this level if already in the efficientcondition; (ii) ensure minimum ser- viceabilitylevels on those roads where the very low trafficwould not justify any intervention;(iii) replace all bridges which have exceeded their economic life; and (iv) start to address the congestionproblems of the main arteries and to upgrade the most heavily used freight routes, as well as build a few new roads in key developmentareas. As a result, about 13,000 km of roads would undergo periodic maintenance,33,500 km would be rehabilitated(through "betterment"works), 51,000 m of bridges would be replaced,and 4,000 m of new bridges and 1,100 km of roads would be constructedor upgraded. Heavy emphasis is placed on maintenanceand rehabilitation;they would account for about 75? of all expendituresfor works. In general, this expenditure strategy for national and provincialroads is sound. It has two main weak- nesses, however, Mi)the estimate of availabilityof local and external funds is very optimistic;and (ii) the program for network developmentis not based on adequate considerationsof alternativetechnical solutions and economic benefits. The three-yearexpenditure plan below is an answer to the first weakness. In addition,the strengtheningof GOI planning capabilityand the various investmentstudies to be undertakensoon (para. 2.24) should also give aGI the means to address the second weakness in future planning efforts.
Three-yearExpenditure Plan
3.10 Activitiesand Expenditures. GOI has prepared a core plan of high priority activitieson inter-urbannational and provincialroads for its 1989/90 to 1991/92 fiscal years, the implementationperiod of the proposed project. The goal of this core plan is to take account of the limited avail- ability of local and foreign funds and to provide a comprehensiveand coherent frameworkto guide GOI's decision-makingin preparingannual budgets and for- eign funded projects. The plan is based on an estimate .f future disburse- ments for already committed foreign funds and a reasonable,yet somewhat ambitious,forecast of local and additionalforeign funds for roads. Given these constraints,the plan concentratesalmost exclusivelyon maintenance, bettermentand bridge replacementactivities. All other expendituresare drasticallycurtailed. Details of the core plan and its physical targets are given in Table 3.1. Expendituresare summarizedbelows - 23 -
Planned Expenditures Activity 1989190 1990/91 1991/92 Total 2 of Rp la US$ fb Rp USS Rp US$ Rp US$ Total
Maintenance 313 177 258 146 478 270 1,049 593 24.5 Betterment 558 316 849 480 562 318 1,969 1,112 46.2 Bridge replacement 158 89 124 70 167 94 449 254 10.5 New Construction/Upgrading 20 11 37 21 103 58 160 90 3.7 Administration 181 102 220 124 246 139 647 366 15.1
Total 1,230 695 1,488 841 1,556 879 4,274 2,415 100.0
/a Current Rupiah billion with GOI's assumptionthat unit costs would increase 82 per year, which is slightly over but consistentwith the Bank's own inflation estimates. /b Cu:rrentUS$ million with US$1 = Rp 1,770.
3.11 The justificationof maintenanceand betterment expendituresis strong. They have been establishedby province and for specific types of works, through DGH's new sophisticatedplanning methodologies, which are based on the analysis of alternativeimprovement strategies for standard road links, the selectionof optimum treatments,and the programmingof subprojectsin accordancewith their economic returns (para. 5.4). During the planned three- year period, all maintenanceneeds would be fulfilledand a considerablepart of the backlog of bettermentwould be eliminated,while a holding treatment would be applied on the roads for which bettermentis justifiedbut cannot be done sooner for lack of funds. As a result, about 8,500 km of roads would undergo periodic maintenanceand about 20,000 km would be improved. Bridge replacementwould proceed at a pace about 152 higher than in previous years; about 24,000 m of bridges which have exceeded their service life would be replaced. Because of financingconstraints, less than 42 of the plan total expenditureswould b- spent on new construction,road upgrading and land acquisition. This may underestimatethe needs for network development,a consequenceof the lack of in-depthanalysis in this area during Repelita V's preparation. This should be correctedin the plan's annual updates after DGH's capability in this area is strengthened. Expendituresfor administra- tion, about 15Z of the plan's total costs, are reasonable. While almost all of the plan's activities are justifiedby high economic returns, their rationalewill become less strong as the network improves and more marginal projects with lower-trafficare undertaken. If resourcesturned out to be scarcer than estimated, there would be scope for reducingexpenditures by postponingpart of the large bettermentcomponent. In addition,although the plan's targets are consistentwith the implementationcapacity which DGH has recently demonstrated,their achievementmay be expected to put much pressure on DGH with possible delays if unforeseencircumstances occur. Adjustmentsto the targets, on the basis of annual results in particular,will be made every year when the plan is rolled over (para. 3.14). - 24 -
3.12 Financing. The expenditureplan would be financed as follows:
Current Rp Current US$ Source of Funds billion million Z of total
1. Local funds: Central and ProvincialGovernments 1,218 688 28.5 Value added tax discount 369 209 8.7 2. Ongoing and committedforeign loans 1,350 763 31.5 3. New Loans: ADB Tenth Loan 106 60 2.5 OECF loans 349 197 8.2 EXIM Bank of Japan loans 91 51 2.1 New IBRD loan 620 350 14.5 To be determined 171 97 4.0
Total 4,274 2,415 100.0
The estimate of Central and ProvincialGovernment funds is based on past years' actuals and assumes a 152 growth in real terms. Ongoing and committed foreign loans (includingthe IBRD loans made between 1981 and 1986) are der-ailedin Table 3.2. The above estimate assumes that their entire balance wouid be disbursed during the three-yearplan's period, which is realistic. The new foreign loans are firm. The ADB Loan (US$120million about 50X of which would be expended during the plan's period) was negotiated in early July 1989; it would mainly finance the bettermentof high priority roads (Teath Road Project). The two new OECF loans have been announcedat the IGGI meeting in June 1989. The first, which is intended to finance OECF's Second Nine ProvincesRoad RehabilitationProject, is expected to amount to about US$170 million about two thirds of which would be expended during the plan's period. The second OECF loan, its Second Sector Program loan, will finance expendi- tures in many different sectors. GOI is planning to use about Rp 142 billion equivalent of this loan to financeworks on interurbannational and provincial roads. Japan EXIM Bank's new financinghas also been announcedat the last IGGI meeting. It is intended to cofinanceongoing ADB and IBRD projects for national and provincial roads. The Bank loan (US$350million) woul4 cover about 15.9Z of the plan's total cost, net of taxes. Funds would be disbursed in about equal amounts each year on priority subprojectsselected as part of the annual budget process (para. 4.35). The data presented in Table 3.3 shows that with the exceptionof administrationactivities and new construction, maintenanceis still proportionatelyunderfunded. It should therefore receive first priority in the allocationof all new funds, includingthose of the proposed project and of the other projectswhich are currentlybeing final- ized.
3.13 As shown above, Rp 171 billion, about 4.0? of all expendituresare expected to be funded by loans which have yet to be determined. Most of these expenditureswould take place in the second and especially the third year of the plan. GOI has, in particular,submitted a proposal to the Japanese EXIM- Bank for their consideration. - 25 -
3.14 Future Revisions. In order to continue to be a useful tool to pre- pare budgets and foreign-fundedprojects, GOI's three-yearcore expenditure plan should be rolled over annually on the basis of the new data on road con- dition which is to be collected each year in accordanceto DGH's PPB process as well as of any needed adjustmentin implementationschedules and changes in the availabilityof local and foreign funds. At negotiations,an agreement was reached with GOI that it would: (i) starting in its fiscal year 1989/90, prepare axnnuallya draft rolled-overexpenditure plan covering the following three fiscal years for all interurbannational and provincialroads on the basis of a reasonableforecast of available local and foreign funds and in accordancewith a methodologywhich is acceptableto the Bank (that of DGH's integratedroad managementsystem or any new version refined on the basis of experience--detailsare in Annex 2); and (ii) provide the Bank with such draft no later than December 1, 1989 and 1990, discuss it with the Bank, and, soon thereafter,issue it, taking the Bank's comments into account.
D. Annual Work Programs and Budgets
3.15 GOI's FY1989/90budget for National and ProvincialRoads corres- ponds to the expenditureplan's first year. On the basis of DGH's PPB system, it establishesa precise work program for each province and allocates local and foreign funds to specific subprojects. This budget was reviewed by the appraisalmission and found acceptable. Details are in the Project file. Subprojectswith an economic rate of return above 152 are eligible for financ- ing out of the proposed Bank loan (para. 4.35). As is usually the case in road programs,however,the 1989190 budget is quite heavily dependenton ongoing subprojectswhich cannot be changed. Some of these as well as some new subprojectshave been selected for equity and long term regional develop- ment reasons and could not be consideredas first priority undertakingson the basis of strict economic criteria. Nevertheless,in most cases, these sub- projects serve a useful developmentpurpose and their total cost is limited to approximately25Y of total budgeted expendituresin 1989190.
3.16 Work programs and budgets for 1990/91 and 1991/92will be prepared in accordancewith GOI's national budgetingprocedures and on the basis of DGH's road management system. It is also expected that they would take account of medium-term implicationson the use of resourcesas revealed by the updated expenditureplan. Furthermore,given that subprojectswhich are already ongoing will gradually reach completionand since the shortage of resourcesmay be expected to remain high, GOI should continue its efforts to optimize work programs and budgets. At negotiations,an agreementwas reached with GOI that: (a) its 1990/91 and 1991/92work programs and budgetswould satisfy economic and technicalcriteria acceptableto the Bank; the main criteria are that (i) all routine and periodic road maintenanceneeds will be fulfilledand (ii) the total value of subprojectswith an internal economic rate of return of less than 15? will be less than 20? of nonmaintenance expenditures(see Annex 2); and (b) it would provide the Bank with a draft work program and budget for its review and comments no later than February 28 of 1990 and 1991. A format for the presentationof the budget (which is likely to include 500 to 700 separate subprojectseach year) was agreed at negotiations. It will provide key informationin a comprehensiveand concise m.nner and permit a rapid analysis of the budget. - 26 -
E. Toll Roads
3.17 In addition to improvingits national and provincialroads network, GOI is planning a substantialextension (about 225 km) of its system of toll roads in urban and interurbanareas. In accordancew.l' GOI's current pol- icy, new toll roads would not be financed by State funas except in some cases for land acquisition. They would be built, financed and operated by private joint-ventureswhich would include the State Toll Road authority,PT Jasa Marga, as a minority partner. A similar implementationstrategy is being followed by several countries in the world and, although it involves difficult legal and financialarrangements, it has proven a useful way to increase the volume of funds and the efficiencyof their use in the road sector. As a consequence,however, actual implementationof projects is likely to depend much on the availabilityand financialcapability of privat- joint venture partners. For this reason and because of their off-budgetnature, toll roads are not part of the above expenditureplan.
3.18 The planning of toll roads should neverthelessbe given careful attentionbecause (a) they should complementnational and provincialroads, and (ii) given the magnitude of resourceswhich these projects would mobilize, they need to be preparedwith detailed analysis of technicalalternatives, economic benefits and environmentalimplications. GOI has already planned several studies, to be financedunder ongoing Bank and ADB projects in par- ticular, to clarify its toll road strategy. One is expected to identify medium-term investmentpriorities mainly among the toll road projects which are being contemplated. Two others will analyzemodal alternativesin Indonesia'smain transportcorridors on the longer-termand recommendpolicy improvementsand prioritiesfor developmentof infrastructures(including toll roads). In addition,at negotiations,an agreementwas reachedwith GOI that before authorizingthe implementationof any toll road project, it would carry out, or cause to be carried out, a feasibilitystudy based on generallyrecog- nized sound economic and environmentalmethodologies and give the Bank an opportunity to comm nt on the results of the study. - 27 -
4. BANK PARTICIPATION
A. Project Backgroundand Formulation
4.1 The GOI has recognizedthe need for improvementsin the road sub- sector and has taken several steps in recent years particularlyin regard to improving road maintenanceand the executionof roadworks. However, measures in key policy areas affecting the efficiencyof the subsectorhave been limited and neither guided by clear principlesnor well coordinated. After several years of preparatorywork under previous highway projects,GOI has prepared, and is committed to implementa Policy Statementand an associated Action Plan specifyingmeasures in key policy ereas concerningroad transport and road use (para. 3.1). The proposed project, a logical continuationof the Bank's involvement in the subsector, is designed to assist GOI in these efforts. The loan will finance a slice of about 15.9Z of the entire expen- diture plan (net of taxes) for interurbannational and provincialroads for the three year period of 1989/90-1991/92.Any suibprojector componentunder the 1989/90-1991/92road developmentand maintenanceprograms will be a potential candidate for Bank financing. Specific subprojectsto be financed under the loan will be identifiedannually on the basis of agreed selection criteria and implementationprocedures (paras.3.16, 4.35-4.42)and the list of subprojectswill be updated and new subprojectsadded at the annual implementationreviews.
B. ObJectives
4.2 The main objectiveof the project is to assist GOI in improvingthe efficiencyof the road subsector. The project supports GOI's Policy Statement and Action Plan and the comprehensivethree year expenditureplan for the road subsectorwhich aim at:
(a) consolidatingrecent improvementsin the formulationand implemen- tation of subsectorexpenditures;
(b) institutingimproved policies on road transportand road use;
(c) improvingand strengtheningthe road subsectorinstitutions of the central and provinciallevels through technicalassistance, studies and training;and
(d) improving the quality of interurbannational and provincialroads by focusing on maintenanceand rehabilitation/bettermentworks.
C. Descriptionof Bank Financed Components
General
4.3 The project includes: (i) technicalassistance, studies and training to assist in the implementationof the PS≈ and (ii) specific sub- projects of the three year expenditureplan selected annually on the basis of agreed proceduresand economic and technicalcriteria. Major componentsof the works programs for national and provincialroads are defined in terms of annual expendituresand physical targets and describedin Chapter 3 and - 28 - associatedTables. Components to be f'nanced by the proposed loan will include road and bridge improvementand maintenance,road safety measures, technicalassistance and training and are comprisedof subprojectsof civil works, procurementof equipment and consultancyservices.
Road and Bridge Improvementand Maintenance
4.4 DGH has submitteda first list of subprojectswhich are suitable for Bank financing: 1,207 km of road rehabilitation/bettermentworks, 2,385 km of periodic maintenanceworks and 9,713 m of bridges with estimated total cost at US$66.9, US$159.6, and US$41.6 respectively(Table 4.1). The subsequent two lists will be submittedno later than February 28, 1990 and 1991, respec- tively. The civil works will be designed and their procurementand implemen- tation supervisedby DBM staff and consultants.
4.5 Road Rehabilitation/Betterment:These works will be carried out on seriouslydeteriorated sections of national and provincial roads in various parts of the country and selected on the baris of technicaland economic cri- teria. The works will be designed for a ten-year lifetime in accordancewith agreed standardsand would generallycomprise, as required, improvementof side and cross drainage and repairs,widening and strengtheningof pavements and sho_.lders.All pavementswill be strengthenedby bituminous overlays designed on the basis of existing condition (measureddeflection under load) and traffic volume and loadings projectedfor the next ten years. Works will be carried out on existing alignment.
4.6 PeriodicMaintenance: These works will be carried out on numerous sections of the national and provincial roads network in all parts of the country where: (a) pavement deteriorationis still moderate and can be correctedby relativelysimple measures such as bituminous surface treatment or a single hot rolled sheet overlay; or (b) where low cost pavementsof earth or gravel need improvementto engineered gravel standard. Although selected, designed and executed as describedabove for the rehabilitation/betterment component,works will be of much smaller scope and cost.
4.7 Bridge Replacement: These works includebridges on the national and provincial roads in various parts of the country that have reached the end of their service life and became traffic bottlenecksfor one or more of the fol- lowing reasons: (a) severe load limitationsbecause of low initial design loads or advanced structuraldeterioration; (b) width restrictions;or (c) hazardoushydrological conditions. Selectionof bridges for replacement will be based on agreed technical and economic criteria and designs are basee on agreed standards.
4.8 Support to the DBMs. The decentralization of DGH functions to the provincial level will place an extreme burden on the 26 DBMs who will now become the main highway agencies responsiblefor preparationand implementa- tion of all work programs for national and provincial roads, including data collection,design, execution,supervision and monitoring. In addition to planned staff transfers from DGH to the DBM there is a need for two to three expatriateand local experts to provide all-aroundtechnical support for each DBM (some of which will be provided by ADB and OECF), but who will also carry I out on-the-job training. The project will, therefore,provide consultancy D services to the DBMs for a total of 1,404 staff-months,405 staff-monthsof - 29 - foreign a-ad999 staff-monthsof local consultantsservices. De;ailed terms of referencewere agreed at negotiationsand are availablein the Project File.
4.9 Design and Supervisionof Road and Bridge Works. Most design of road works and bridges will,be carried out by local consultantsusing DGH's standards,procedures and systems. A total of 2,500 km of bettermentworks, 3,000 km of periodic maintenanceworks and 14,000 m of new bridgeswill be designed. This amounts to about 122 of the total national and provincial roads program for bettermentworks, 35Z of maintenanceworks and 582 of bridges estimatedto be designed during the project period. The remainderof the programs will be designedwith assistanceunder projects financed by other donors. Supervisionof road- and bridgeworkswill be carried out by DBM staff supplementedand strengthenedby local consultants. The projectwill thus provide consultancyservices to DGH and the DBMs for a total of 6,750 staff- months. Detailed terms of referencewere agreed at negotiationsand are available in the Project File.
Road Traffic Safety
4.10 Land transport safety is being given increasedimportance as evi- denced by the creation of a separate directorateof safety within the newly reorganizedDGLC. The road safety componentwill include civil works, equip- ment and consultancy (advisory)services on the basis of the findings of the recently completed Highway Safety Program (HSP) financedunder recent and ongoing Bank financed highway projects.
4.11 Civil Works: The works will includemeasures to: eliminateknown accident blackspots.Improve horizontaland vertical geometry to lengthen sight distance,improve road surface friction,improve existing and erect new traffic signs and guard rails, and separate traffic streams. The works will be designed by DGH in cooperationwith DGLC and implementedthrough DGH's regularwork programs.
4.12 Equipment: To enhance accident reportingand analysis,the traffic police and DGLC need specializedequipment for accident data collection, storage and processing. DGLC is also in need of equipment for, inter alia, vehicle testing and inspection. A list of equipmentwill be agreed with GOI when review by the road safety consultants(para. 4.13) is complete.
4.13 Advisory Services for DGLC: The road traffic safety advisory ser- vices will assist DGLC's new directorateof safety to develop and implementan initialprogram of measures building upon the findings of the HSP and will involve the provision of assistancewith, inter alias (a) the identification of serious accident blackspotson interurbanroads, particularlyon Java and Sumatra; (b) the preparation,implementation and monitoring of a pilot program of safety improvementmeasures at the worst locations; (c) the further refine- ment and wider implementationof improved traffic accident data collection, reportingand analysis procedures; (d) the preparationof proposalsand a program for strengtheningthe administrationand enforcementof road safety- related regulations;(e) the review of experiencewith vehicle testing and preparationof recommendationsfor improvements;and (f) the design and tar- geting of road safety awarenesscampaigns. This will require 33 staff-months of foreign and 30 staff-monthsof local expert assistance. Detailed terms of referencewere agreed at negotiationsand are available in the Project File. - 30 -
TechnicalAssistance
4.14 The various agencies involved in roads and road transportneed tech- nical assistance for institutionalstrengthening and to help with the prepara- tion and implementationof policy measures. A total of 2,004 staff-months would be required, 974 staff-monthsof foreignand 1,030 staff-monthsof local experts' services (Table 4.2). As these serviceswould address most of the needs of the road subsectorand associatedinstitutions including some of those requiredby projects financed by other donors, the amount of services is greater than in traditionalhighway projects. Another reason is the fast pace of decentralizationset by the governmentas well as expanding road operations in general. GOI's objectivesare to ensure high technicalquality of planning, programming, budgeting, design, construction and monitoring of road works, while at the same time developing local capabilitiesto reduce the need for foreign technical guidance. During negotiations,agreement was reached with GOl on the terms of referencefor most technicalassistance and the terms of referenceare available in the Project File.
4.15 Planning Programming and Budgeting. As DGH's integratedplanning programming and budgeting systemsare still new and have so far only been used by a core group in DGH, considerablesupport will be needed to train and assist Central and Provincial staff in their use and in the preparationof future work programs and budgets. Improvementin data collection, refinement of the planning and programmingmodels, and coding of systems' improvements will also be needed. In addition DGH needs to strengthen its capability to evaluate the feasibilityof road constructionand upgrading proposals (para. 2.24). For this purpose, the project will provide technicalassistance to DGH's Sub-Directoratefor General Planning for a total of about 148 staff- months, 108 staff-monthsof foreign and 40 staff-monthsof local consultants services.
4.16 EngineeringDevelopment. DGH will need support to (i) further develop its technicaland contractualpolicies and proceduresand incorporate these improvementsin its systems for roadworksdesign and preparationof tender documents; and (ii) assist and control provincial staff in the prepara- tion of road designs and contract documentsand in the resolutionof technical issues during implementation. For this purpose, the project will provide technical assistanceto DGH's EngineeringSub-Directorate for a total of about 243 staff-months,108 staff-monthsof foreign and 135 staff-monthsof local consultantsservices.
4.17 ImplementationQuality Improvement. DGH needs to develop and imple- ment a mechanism for effectivequality control and monitoring (includingtech- nical audits) of road works in a decentralizedenvironment. This will include training of a few DGH engineers (from the Directoratesof Implementation),80 DBM supervision*mgineers, over 300 provinciallaboratory staff, some 550 project managers and some 1,100 contractors'and consultants'staff. For this purpose, the project will provide technicalassistance to DGH in the amount of 152 staff-monthsof expatriateengineers and 140 staff-monthsof local labora- tory technician services. The project also provides for laboratory and field testing equipment for US$0.24 million (Table 4.3). - 31 -
4.18 Hiahway Capacity Manual. Traffic and infrastructurein Indonesia differ from those of the industrializedcountries to such an extent that for- eign methodologiesdo not apply. The developmentof Indonesia'shighway capa- city manual for urban and intercityroads and traffic is thereforeurgent. For this purpose the project will provide technicalassistance to DGH for a total of 152 staff-months,56 staff-monthsof foreign and 96 staff-monthsof local consultants'services.
4.19 MIS. DGH management informationsystem needs much improvementto generate better data for monitoringcontract executionand monitoring and forecastingdisbursement of local and foreign funds. For this purpose, the project will provide technicalassistance to DGH programmingand information division for a total of 87 staff-monthsof consultantsservices, 12 staff-- months of foreign and 75 staff-monthsof local consultantsservices.
4.20 Central Axle Load Survey Unit. DGH has started a limited but sys- tematic weigh-in-motionprogram to monitor axle loads and vehicle weights in order to improve pavement design and analyze the damaging power of vehicles in relation to appropriateroad user taxation. The program needs to be continued and expanded. For this purpose, the project provides for technical assistance for a total of 174 staff-months,30 staff-monthsof foreign and 144 staff- months of local consultants'services as well as for new weigh-in-motion equipment and spare parts for existing equipmentin the amount of US$0.81 million (Table 4.3).
4.21 IRE. Under previous highway projects,the Institutehas been pro- vided with some assistancein areas such as pavement monitoring and research, materials inventory and mapping, geotechniques,traffic (includingroad safety) and research training. Continuedassistance is required in these areas but also in consolidatingstudies and research on the local rock asphalt (Asbuton),in the testing of new materials, equipmentand technologyand in unifying standardsand specificationsfor all road classes. For this purpose, the project would provide technicalassistance to IRE under two contractsfor a total of 429 staff-months,234 staff-monthsof foreign and 195 staff-months of local consultants'services. The project also provides for additional laboratoryand research equipmentfor US$0.52 million (Table 4.3).
4.22 Quality Control and MaintenanceManagement of Toll Roads. The expanding toll roads network needs improved systems for quality control and maintenancemanagement. While the basics of DGH's systems can be used to some extent, they need to be changed and refinedwith regard to the differentneeds of these limited access, high volume, high speed roads. For this purpose the project provides for technicalassistance to Jasa Marga for a total of 145 staff-months,95 staff-monthsof foreign and 50 staff-monthsof local consul- tants' services. The project also provides for laboratoryand pavement test- ing equipment for US$0.33 million (Table 4.3).
4.23 Road User Taxation Reform (MOC). MOC has been given responsibility for coordinatingthe preparationof proposals for improvingthe road user taxation regime and monitoring the impact of changes introduced. A technical team will be establishedin MOC, whose duties will include inter alias (a) the review of recent road user taxation studies and the updating and the evaluation of their conclusionsand recommendations;(b) the developmentof detailed proposals for the phased reform of the present structureand level of - 32 - charges; and (c) the developmentand implementationof arrangementsfor moni- toring on a continuingbasis the ext3nt to which user taxes for the different categoriesof vehtcles cover their attributableinfrastructure costs. In the first stage of its work during the period Z%.ober 1989 - March 1990 the HOC team will be assisted by a short-termadvisor financedunder the Bank's National Ports DevelopmentProject. Thereafterthe HOC team will require continuing odvisory services to put in place the necessarymonitoring and evaluationprocedures and to develop detailed proposals for subsequent reforms. These latter serviceswill require 15 staff-monthsexpatriate expert assistance spread over a period of two to three years.
4.24 InstitutionalDevelopment of DGLC. A new organizationstructure for DGLC was adopted on flay31, 1989 the implementationof which will need to take into account: (i) the reorganization,in late 1988, of MOC's regional offices; and (ii) the further decentralizationof road traffic and transport functions to Level I and II regional governments. DGLC needs advisory ser- vices to assist with the implementationprocess; the would cover, inter alia, the following: (a) the developmentof detailed task descriptionsfor posi- tions down to the Echelon IV level; (b) the developmentof operatingand pro- cedural guidelines,including DGLC's relationshipwith MOC regional offices and regional governmentroad traffic and transportunits; (c) the preparation of technicalguidelines for regional governmentroad traffic and transport units; (d) the preparationof a program for the upgrading of DGLC's management and technical informationsystems; and (e) the preparationof a preliminary program for staff developmentand training for DGLC and the land transport units of MOC regional offices. This will require some 56 staff-monthsof for- eign and 59 staff-monthsof local expert assistance.
4.25 Vehicle Weight and Dimension Regulationand Enforcement. GOI plans to (i) revise existing vehicle weight and dimensionlimits in order to permit and promote increasedroad transportefficiency; and (ii) improve enforcement effectivenessso as to lower the incidenceof vehicle overloadingand hence reduce road pavement damage. Advisory services to DGLC will provide assis- tance with, inter alia: (a) the finalizationof new vehicle weight and dimen- sion limits and, linked to this, the developmentof proposals for the classificationand 'plating'of vehicles, and for the classificaticnand signing of roaas according to their carrying capacity; (b) the preparationof a detailed action program for implementingthe new limits and associated plating of vehicles and signing of roads; (c) the determinationof priorities for the upgrading of key road links to carry larger/heaviervehicles (to be undertaken jointly with DGH); (d) the design, conduct and evaluationof pilot schemes for improvingthe effectivenessof vehicle weight and dimensionlimit enforcement;(e) the design and imp'lementationof arrangementsfor monitoring the impacts of changes in limits; and (f) the design and conduct of an aware- ness campaign to inform commercialvehicle operatorsof the changes and their implications. This will require some 40 staff-monthsof foreign and 42 staff- months of local expert assistance.
4.26 FeasibilityStudies of Toll Road Proposals. A broad strategy for toll road developmentis expected to result from studies now planned under ongoing projects. As a follow-upand in order to provide a more specific assessment of options, the feasibilitystudy of priority proposalsshould be carried out (or updated when already done). For this purpose, the project will provide technicalassistance to Jasa Marga for a total of 60 staff- - 33 - months, 35 staff-monthsof foreignand 25 staff-monthsof local consultants' services.
Trainin8
4.27 In addition to the formal and on-the-jobtraining conducted under the various technicalassistance services describedabove, DGH has prepared an outline of a training program that includes training by their training div- ision (DIKLAT),graduate training in liaisonwith Instituteof Technology Bandung (ITB) and overseas training for masters' degrees. MOC has alsa indi- cated the need to initiate the training cf transportoperators. The training component of the project is summarizedbelow. The substanceof the terms of referencewas agreed with GOI during negotiations. Related documents are available in the Project File.
4.28 DIKLAT Training. The program focuses on the most immediatetraining needs in DGH and the DBMs (para.2.37) for improvingthe quality of operations through better project managementand supervisionand intends to train a total of 2,500 staff. Trainingwill be carried out in MPW's regional training cen- ters and coordinatedby the Ministry's Center for Training (PUSDIKLAT). The program will supplementand complementthe Bank's MPW InstitutionalDevelop- ment and Training Project and training programs financedby other donors. The program will require assistanceto the DIKLAT for the setting up of the detailed program, preparationof course material and for conductingcourses. The project will thereforeprovide for a total of about 170 staff-months,70 staff-monthsof foreign and 100 staff-monthsof local training experts.
4.29 Training for Masters' Degree in Highway Engineering. Under two previous highway projects and in liaisonwith the Bandung Instituteof Technology (ITB), two-year master's degree programs in developmentplanning and economics and in highway and traffic engineeringwere started in 1982 with most lecturersprovided through foreignuniversities. The planning and econo- mics program has been fully absorbed into ITB's regular course program and the engineeringprogram will soon be absorbed except for lacking capabilitiesfor certain specializedtopics and for thesis work which are being strengthenedin liaison with the Instituteof Road Engineering(IRE). The project will, therefore,provide for a three-yearextension of the engineeringprogram including 79 staff-monthsof foreign and 100 staff-monthsof local lecturers' services. Furthermore,starting in the fall of 1990 the programwill be split such that about half of the second-yearstudents (a total of some 15 students) will carry on and complete their studiesat selecteduniversities overseas (para. 4.30).
4.30 Overseas Training: Indonesianuniversities are now capable of under-graduatetraining in most fields related to transportengineering and economics,while post-graduatetraining in these fields is limited to ITB with some 20 to 30 students annually,which does not meet needs. Therefore,in addition to overseas post-graduatetraining of some 15 second-yearITB engineeringstudents (para. 4.29), the project will provide for full post- graduate training of some 20 offlcialsof DGH and DBMs and some ten officials of DGLC at selected overseas universities. - 34 -
4.31 Road TrarsPortOperator Training (DGLC). The road transport operator training serviceswill assist in: (a) the developmentof appropriate course curricula and delivery arrangementsfor the training of management and operationalpersonnel; (b) the identification/selectionand training of future Indonesian instructors;and (c) the conduct and evaluation of a pilot program of courses in Java and selected provinceselsewhere. The courseswill be targeted mainly at senior/middlelevel staff of companies operating large/mediumsize fleets of trucks or buses. Particularattention will be given to developinginstitutional arrangements, preferably involvingthe pri- vate sector and/or the universities,which will ensure that curricularemain responsiva to needs and which will eliminatethe need for continuinggovern- ment financial involvement. This will require some 65 staff-monthsof foreign and 55 staff-monthsof local expert assistance.
D. Cost Estimatesand Financing
4.32 Cost estimatesrepresent base costs as of mid 1989. The direct and indirect foreign exchange component (excludingtaxes) for civil works is estimated at about 56X on the assumptionthat local contractorswill carry out all maintenanceworks and some 701 of other roadworks,as has been the case lately. For consultancyservices it is estimatedat 35X for supervision, engineeringand relatively simple studies on one hand and at 80Z for technical assistanceand complex studies on the other hand. Costs have been derived from completed and ongoing contracts for civil works and consultancies. Price contingencieshave been estimatedbased on the followingrates of inflation: for local costs 8X for 1989. 7? for 1990 and 5? thereafter;for foreigncosts 7.2Z for 1989-90 and 4.4Z thereafter.
4.33 The Bank loan of US$350.0 million will finance 15.9Z (excluding taxes and duties) of the total cost of US$2,415 million of DGH's expenditure plan for national and provincialroads for the three fiscal years of 1989/90- 1991/92 shown in para. 3.10. The first table below summarizesthe cost (net of taxes) of the various components of the plan to which the Bank loan would be applied (detailsin Table 4.4) and the second table summarizesthe same cost by type of expenditure (detailsin Table 4.5). The allocation shown is tentativeand funds could be transferredbetween categories if year-to-year needs change. - 35 -
Cost in US$ z Components Local Foreign Total foreign
Road and Bridge Improvement and Maintenance 221.6 265.7 487.3 55 Road Traffic Safety 5.5 9.3 14.8 63 TechnicalAssistance 3.2 14.4 17.6 82 Training 0.8 5.3 6.1 87 Price Contingencies 24.5 29.7 54.2 55
TOTAL 255.6 324.4 580.0 56
Cost in US$ Type of Expenditure Local Foreign Total X foreign
Civil works 210.5 263.6 474.1 56 Equipment procurement 0.2 3.8 4.0 95 Consultancyservices 20.4 25.3 45.7 55 Overseas training - 2.0 2.0 100 Price contingencies 24.5 29.7 54.2 55
Total 255.6 324.4 580.0 56
The loan will finance 602 of the total cost of these components (1002 of the total foreign cost and 102 of the total local cost). The overall financingof the expenditure plan is shown in para. 3.12.
E. Implementationof Bank Financed Subprojects
4.34 As for previous highway projects, the Ministry of Public Works will be responsiblefor implementingmost of the project components through DGH's and IRE's permanent organizations,the DBMs and Jasa Marga with the assistance of a project liaisonunit which also coordinatesprogress monitoring and reporting. In MOC, DGLC and the Bureau of Planningwill be responsiblefor the technicalassistance and training and for the policy agenda.
4.35 The Bank loan will finance: (a) civil works of specific agreed subprojects;(b) procurementof equipment in accordancewith lists acceptable to the Bank; (c) technical assistancein support of civil works implementa- tion and agreed institutionaldevelopment, training and sector policy reforms; and (d) overseas training. GOI will submit annually a list of subprojectsto be agreed with the Bank. All subprojectsof civil works for roads (except minor work related to road safety) to be financedunder the projectwill be included in an annual budget for national and provincialroads reviewed and - 36 - found acceptable to the Bank (para. 3.16). Tn addition,civil works subpro- jects will have a minimum economic rate of return of 15Z.
F. Procurementof Bank Financed Subprojects
4.36 Procurementof Bank financed subprojectswill be carried out as shown in the table below:
EPLocurement Method Total Project Element ICB LCB Other cost ------us$ million ------
Civil lforks Road Rehabilitation/Betterment 138.5 2.7 - 141.2 (77.6) (1.5) - (79.1l Periodic Maintenance - 3G8.8 - 308.8 - (173.0) - (173.0) Bridge Replacement 70.2 2.7 - 72.9 (39.3) (1.5) - (40.8) Equipment 3.9 - 0.5 4.4 (3.9) - (0.5) (4.4) TechnicalAssistance and Consultancy Services - - 50.5 50.5 - - (50.5) (50.5) Overseas Training - - 2.2 2.2 - - (2.2) (2.2)
TOTAL 212.6 314.2 53.2 580.0 (120.8) (176.0) (53.2) (350.0)
Notes: (a) Covers only componentsfinanced by the proposed loan, based on initial tentativeallocations. (b) Figures inc!ude contingenciesand these in parenthesesare the respectiveamounts financedby the Bank.
4.37 Except for small works (less that $0.1 million each and with an aggregated annual value of up to $1.0 million) in isolated areas, all Bank financed civil works for the national and provincialroads betterment and bridge replacementprograms will be carried out on the basis of ICB procedures by firms prequalifiedin accordancewith proceduresacceptable to the Bank. Bidding documentswill be standardizedand satisfactoryto the Bank.
4.38 Prequalifiedcontractors will be allowed to bid on any contract or group of contracts for the above civil works but will be eligible for awards only up to the value of works for which they are prequalified. Invitations for prequalificationwill be issued annually in accordancewith the Bank's procurementguidelines. Minimum contract package for road bettermentwill be $3.0 million, while for bridge replacementno more than 15Z of contract pack- -37 - ages will be below $0.5 million and no less than 302 will be $1.0 million and above.
4.39 All maintenanceworks, and small works exempt from ICB procedures (see para. 4.37 above),will be procured under LCB proceduresacceptable to the Bank (includingsatisfactory prequalification procedures). Interested foreign contractorswill be allowed full participationand will not be required to register the firm in the provinceswhere they want to place bids. Contracts for periodic maintenance (and for periodic and routinemaintenance if combined in one contract)will be packaged as follows:
(a) One year contracts (1989/90program only): maximum 152 of contracts of Rp 0.5 billion (aboutUS$0.3 million) value or less and a minimum of 30% of contractsof Rp 1.5 billion (aboutUS$1.0 million) value and above; and
(b) Multi-year contracts: maximum 7% of contracts of Rp 0.5 billion (about US$0.3 million) value or less and a minimum of 502 of con- tracts of Rp 1.5 billion (about US$1.0 million) value and above.
4.40 All civil works of $4.0 million and above will be subject to prior review by the Bank, the remainderwould be subject to post review on a random basis.
4.41 Equipmentwill be procured on the basis of ICB, except for minor items or groups of items estimatedto cost less than US$200,000 per contract, up to an aggregate amount for all contractsnot to exceed US$1.0 million which may be procured on the basis of internationaland local shopping by obtaining at least three quotations from foreignand/or local suppliers. Items should be grouped to the extent possible. Contracts for procurementof equipment over US$200,000will be subject to prior Bank review.
4.42 The consultantswill be employed in accordancewith principles and procedures satisfactoryto the Bank on the basis of the August 1981 guide- lines. Overseas training will be contractedunder procedures,terms and con- ditions acceptableto the Bank. Contractswill be subject to prior Bank review.
G. Disbursements
4.43 Disbursementsfrom the loan will be made against applicationsbased on contracts for agreed subprojectsas follows:
(a) Civil Works: 552 of the total expenditurefor selected civil works contracts;
(b) Equipment: 1002 of foreign expendituresfor directly imported items; or 100% of lccal expenditures(ex-factory, net of taxes) of locally manufactureditems; or 65Z of local expendituresfor other locally procured items;
(c) Consulting Services: 100X of total expenditures;and
(d) Overseas Trainings 100% of total expenditures. - 38 -
In order to facilitatedisbursements, a SpecialAccount would be opened in Bank Indonesia tor the purposes of the project by the Ministry of Finance. The use of the Special Account would be in accordancewith prevailing GOI procedures. The accountwould be maintained in US dollars and an initial deposit of US$20.0 million would be made as about the average expendituresfor a four-monthperiod. Applicationsfor replenishmentof the SpecialAccount would be made quarterly or whenever the account is drawn down to 50X of the initial deposit, whichever comes first. A schedule of estimateddisbursements is given in Table 4.6. The schedule differs substantiallyfrom the disburse- ment profile of standardhighway projects (which require some seven years for completion),mainly because the project is limited to a time-slicefor expen- ditures of three consecutive annual road programs of the national and provin- cial road network. Disbursements are expected to be completed in about three and one-half years. The closing date of the loan will be June 30, 1993.
4.44 Disbursementsfor item (a) for contractsof over US$4.0 million and for items (b) for contracts over US$200,000,(c) and td) would be made against full documentationof expenditure,while disbursementsfor all other items would be on the basis of Statementsof Expenditures(SOEs). Withdrawal applicationsfor items (b), (c) and td) would be aggregatedto conform to the followingminimum thresholds; reimbursement--US$100,000equivalent; direct payment--US$50,000equivalent In foreigncurrency and US$100,000 equivalentin local currency; letter of credit--US$50,000equivalent.
4.45 Furthermore,at negotiationsan agreementwas reachedwith GOI that no withdrawals shall be made in respectof subprojectscontractedt ti) after March 31, 1990 but before April 1, 1991, on account of payments made for expenditures until the work program and budget for FY1990t91 for interurban national and provincial roads have been prepared in accordance with economic and technical criteria satisfactory to the Bank, and the Bank is satisfied with the progress made in the implementation of the work program and budget for FY1989190; and (ii) after March 31, 1991, on account of paymentsmade for expenditures until the work program and budget for interurban national and provincial roads for FY1991/92 have been prepared in accordancewith economic and technicalcriteria satisfactoryto the Bank, and the Bank is satisfied with the progress made in the implementaionof the work program and budget for Fyi990o91.
H. RetroactiveFinancing
4.46 Retroactivefinancing for civil works and consulting services,not to exceed US$35.0 million, would be provided under the proposed project for expendituresincurred after April 1, 1989 and before the date of the loan agreement.
I. Monitorins and Auditing
4.47 Most contract administrationunder the proposed loan would be the responsibilityof DGH and the DBMs with a few contracts being the responsibil- ity of IRE, Jasa Marga and MOC. These agencieswould keep records of all pro- curement documents, (includingbids and proposals and their evaluationand contract awards) and official decisionson each agreed subprojectshowing accumulatedexpenditures, monthly payments and other administrativedata and - 39 - would prepare quarterlyreports with this information. The Bank would reserve the right to inspect and review the documentationmaintained on individual contractsby the agencies and be sent copies of documentson request.
4.48 The annual consultationson the highway program and budget and on the policy action plan would provide the major opportunityfor reviewingpro- gress of the 1989/90 - 1991192 programs for national and provincialroads and the implementationof the proposed project. Monitoringand supervisionof the project will focus on the followingt
(a) The evolutionand subsequentconfirmation of the annual programs and their financialand physical targets for the road developmentand maintenanceprograms, againstwhich progress will be measured;
(b) The nrogress made in pursuing the institutionaland sectoralpolicy objectives of the project as measured against key steps in the agreed Action Plan of the Policy Statement;and
(c) The progress of implementationof Bank-financedsubprojects.
The format and frequencyof reportingwere agreed at negotiations. Also, during negotiations,assurances were obtained from GOI that:
(a) The implementationagencies would keep separate accounts for the proposed project;
(b) The project accounts, includingdocumentation for statementof expenditures(SOEs), would be audited annually by independentaudi- tors acceptableto the Bank; and
*c) The detailed audit reportswould be submittedto the Bank within nine months after the end of each fiscal year. In addition,the implementingagencies will prepare and furnish to the Bank,within nine months after completionof the project, a completionreport on the executionand initial operationof the project.
J. Proiect EnvironmentalImpact
4.49 The road works in the three-yearplan are not expected to have any adverse environmentaleffects. Works are mostly improvementsof roads and bridges, includingimproved side and cross drainage,widening and strengthen- ing of shouldersand pavements,overlays on old pavements,and bituminous surfacingson gravel roads, all of which will improve conditionsalong the road through reducing dust and noise and erosion because of flooding. As most works will be carried out on existing alignments,requirements for additional land are minimal. - 40 -
5. JUSTIFICATIONAND RISKS
A. General
5.1 Benefits. The measures which GOI intends to implementin the next few years to improve road transportpolicies and strengthensector institu- tions, as well as the major expenditureswhich are planned on national and provincialroads, will have considerablebenefits. Those derived from policy and institutionalmeasures are difficult to quantify,however. Among the most important ones in the medium- to long-termwill be the introductionof more efficient types of vehicles (largermulti-axled trucks especially)and the increase in road safety. Also importantwill be GOI9s increasingcapability to develop and enforce traffic and road transportregulations which are appropriateto a rapidly changing transportmarket and to prepare and imple- ment economically,technically, and environmentallysound projectswhich are well adapted to the very diversifiedcircumstances in which they are carried out and which optimize the use of resources. Through traffic and accident surveys and specific transportcost analyses,it will be possible to evaluate some of these benefits in the future. Gains are likely to be considerable given the magnitude of national resourcesused in road transport. As estimated in 1988, the total economic cost of inter-urbanroad transport (nationaland provincialroads only) would be in the US$4 to US$5 billion range equivalentto 5.5% to 7.OZ of GDP. The direct benefits of the physical investments,vehicle operatingcosts savings, are in generalmuch easier to quantify than the benefits of policy and institutionalchanges. They are the basis upon which GOI expenditureplan and 1989/90 budget are prepared. Details on, and evaluationof, methodologiesused are presented in paras. 5.3 to 5.8 below.
5.2 Beneficiaries. The benefits of GOI's policy measures and road expenditureswill accrue to a large and widespreadnumber of beneficiaries. Lower road transportcosts and time savingswill benefit car and bus users as well as truckers and bus operators. Private users such as individualcar drivers, bus passengersand private firms using transporton their own account will capture benefits directly. In addition,the benefits accruing to Indonesia'strucking and inter-urbanbus industries,which are competitive, will be passed on to producersand to consumersthrough lower prices of goods and services.
B. Evaluationof MethodologiesUsed for Preparing the ExpenditurePlan and the Budget
5.3 The methodologieswith which GOI has prepared its three year expenditureplan and 1989/90 budget have been reviewed by the appraisal mission. Although they still require improvements,they were found basically sound because they are based on a satisfactoryeconomic and technical rationaleand attempt correctly to optimize the use of resourcesallocated to national and provincial roads and bridges. These methodologiesare described below for the two main categoriesof expenditures,road maintenanceand bettermentand bridge replacement,which, with cne cost of design and super- vision, account for about 87.5Z of total planned expenditures. As was agreed at negotiations,future updates of the expenditureplan and budgets for 1990/91 and 1991/92would use the same methodologiesor refinedversions. I - 41 -
Road Maintenance and BettermentWorks
5.4 The road maintenanceand betterment componentsof GOI's expenditure plan and 1989190 budget have been prepared on the basis of a sophisticated road management system (RMS) which has been developedover the last few years for the about 50,000 km of rational and provincialroads and, although not fully completed,now shows satisfactoryresults. The mairnobjective of this computer assisted system was to bring uniform and rationalmethods in the planning and budgetingprocess while taking full account of the extreme diver- sity of conditions under which roads are built and maintained in Indonesia. When used for planning,programming and budgeting, the RMS comprises three main phases, (i) the selectionof optimum treatments for standard links repre- sentativeof the network; (ii) the preparationof an indicativemulti-year expenditureplan which takes account of financingconatraints; and (iii) the preparationof a preliminarydesign and cost estimate for each subprojecton the basis of which final decisionson the annual detailedwork program and budget are taken.
5.5 Selectionof optimum treatments. For the paved network, selection is mainly based on the World Bank's Highway Design Model (HDM). Given very detailed informationconcerning road conditions,traffic and each alternative treatment envisaged,this model simulatesroad deterioration,calculates total vehicle operatingcosts over time and provides the net present value and the economic internal rate of return of each treatment. In its present form, DGH's system selects the treatmentwhich iiaximizesnet present value for a 15% discount rate, assumed to be the opportunitycost of capital in Indonesia. The more than 2,500 segmentswhich comprise the road network are grouped in 120 categories (or 'standardssegments") in accordancewith geographicand climatic conditions,structural characteristics, surface quality and traffic (their descriptionis in Table 5.1). For each paved standard segmentwhich does not require full rehabilitation(those with a roughnessbelow 12 IRI), seven alternativetreatments are compared. Optimum treatmentsresulting from this analysis are described in Table 5.2. For paved standard segmentswhich require full rehabilitationand for unpaved segments,the system has its own methodologywhich is not based on the HDM. When full rehabilitationis needed, the system provides directly a specific treatmentwhich depends on the traffic level and is based on engineeringjudgment (see also Table 5.2,. For unpaved segments,the system only considers the paving option which it selects if a simple economic criteriabased on traffic is met. In both cases, when the proposed treatmentis not economicallyjustified, the system selects a minimum service treatment defined on engineering grounds, dependingon road condition and traffic. For paved roads with narrow carriageway,the system also has the capabilityto determinewhether or not it is justifiedto widen the pavement.
5.6 Preparationof ExpenditurePlan. In its second phase, the system prepares a multi-year expenditureplan by allocatingavailable funds each year, first for activitiesconsidered essential such as routine maintenance, minimum service treatments,and ongoing subprojects,and second for the optimum treatments establishedin the previous phase. If funds are con- strained and optimum treatmentscannot be implementedon all segments in a specific year, works are deferred one or possibly severalyears on the basis of an incrementaleconomic rate of return (equivalentto a first year rate of - 42 - return)with the lowest priority subprojectsdeferred first. In this case, an interim 'holding, treatment is applied to the segment to ensure minimum serviceability. Several adjustments are also made to this general process to take account of practicalconstraints, one being, fcr example, that large subprojects would necessarily be implementedover a period longer than one year. The result is a multi-year expenditure plan which is close to proposing the best possible use of available resources, although it is not exactly optimum because the system defers works entirely on lesser priority segments in case of funding constraintsrather than propose second or third best treat- ments on those and other segments (this last possibilitywould maximize the total plan's net present value, but requires a much more complex process which DGH could not probably handle now). The system can produce a forecast of the condition of the network by the end of each year and thus show how well GOI's specificmedium- to long-termobjectives of network quality would be met. If objectiveswere not met with the planned level of expenditures,the alterna- tive would be for GOI to increase its funding for road projects. In any case, the systemwould ensure that only new subprojectswith a positive net present value (i.e., for which the ERR is above 15X) would be identified. Instead, if GOI's resourcesbecame more constrained,the system would show how to cut road expenditures while minimizing the impact on road quality.
5.7 Pr'paration of Work Program and Budget. In its third phase, the system prepa ,s preliminary designs and cost estimates for each new sub- project 8, it luded in the first year of the expenditureplan. For this purpose, more detailed technicaldata on road condition is first collected. When the design and cost estimatesare done, subprojectsshould be re- evaluated from the economic standpointand prioritiesreassessed (this part of the RMS will be completed in the coming months). Final decision on whether the subprojectsare included in the annual work program depends on the final amount allocatedto the road sector in the national and provincialbudgets and the subprojects'place on the priority list. At the end of the budget process, nonmechanisticfactors such as the implemantationof special local or regional developmentobjectives are taken into account and this may lead to some reorderingof priorities. As has been explainedin para. 3.16, however, GOI has confirmed at negotiationsits commitmentthat it would give priority to maintenanceactivities and would not allocate in its actual budget more than 20? of non-maintenancefunds for subprojectswith an ERR below 15?. GOI is also committed to use the output of the RMS to its fullest possible extent in deciding on its annual budgets, and this has been done in the preparation of the 1989190 budget.
5.8 DGH's RMS is a remarkabletool which incorporatesthe results of up to date internationalresearch in the area of road planning and design as well as the experiencegained on road managementsystems in Indonesiain the past years. As experiencecontinues, its performanceshould be assessed and it should be improved continuously. Currentlythree main areas deserve atten- tion. First is data collection,the quality of which has not been sufficient in the recent past although it determinesthe soundnessof the entire output. To resolve this problem, DGH is now improvingcollection procedures and putting in place a data audit process. Second are the basic relationships
8/ A subprojectincludes works on several road segments of the same area in general. The packaging is designed to ensure adequate contract size. - 43 -
(for estimatingvehicle operatingcosts or road deteriorationfor example) which need to be better adjusted to the specific circumstancesof Indonesia. Adequate research should be carried out for this purpose. Third is DBM staffs' inadequateunderstanding of how the system works and how it helps them mximize the use of their limited resources. To address this issue, DGH is now starting to systematicallyorganize staff training and support. In gen- eral DGH is committedunder the Action Plan to continue improving the RMS and its use, and assistance for this purpose is included in the proposed project.
5.9 As shown above, the methodclogiesused to select optimum treatments are such that all marginal works accepted by the RMS have a minimum economic rate of return of 15Z. Therefore,the economic internal rate of return for the sum of all works included in each subprojectvill be, in most cases, much higher than 15S.
Bridge ReplacementWorks
5.10 DGH's 3-year expenditureplan for bridge replacementassumes that during this period approximatelyhalf of Repelita V's target will be achieved. The target is to replace all bridges on national and provincialroads which, in a recent update of the bridge inventoryand conditionassessment, were found to have exceeded their service life and be in danger of collapsing. Given resource constraints,DGH's objectivesare reasonable. Out of the about 340,000 m of bridges in the road network, about 51,000 m (about 15X) would be replaced during Repelita V and 24,000 m (about 7,) during the first three years. In fact, under bilateralaid, DGH has already secured financing for more than sufficientbridge superstructureelements to fulfill its three-year plan.
5.11 Bridge replacementworks for 1989/90 have been programmedin accor- dance with a screeningmethodology based on economic criteria (net present value per meter of bridge at a 15? discount rate), standardizedinputs (mainly for traffic composition,unit constructioncosts &nd diversiondistance in case of bridge collapse),and actual bridge length and traffic data. Although the methodology is relativelycrude, it is acceptable in a situation (like in Indonesia)where a large number of relativelysmall bridges need to be replaced (with a replacementcost in many cases below US$500,000)and there is a limited capabilityto carry out a detailed feasibilitystudy for each propo- sal. The methodology excludes bridge replacementproposals which do not have a 152 minimum ERR but, in many instances,the actual ERR is much higher.
5.12 With Australian aid, DGH has recently started an extensiveexercise to put in place a refined bridge management system on national and provincial roads, the equivalentfor bridges of its RMS. This exercise is expected to be completed in September 1992 and, among other goals, will considerablyimprove DGH's proceduresand capabilitiesfor assessingbridge conditionand optimize work programs.
C. Risks
5.13 There are certain risks that GOI's comprehensivestrategy of improving transportpolicies, strengtheninginstitutions and maintaining and improving infrastructure,which the proposed Bank Loan would support,may not - 44 - proceed as expected. Firstly, the implementationof policy reforms and the strengtheningof institutionsmay be delayed for reasons such as political sensitivity,bureaucratic resistance and a slackeningin the pace of prepara- tion for future actions. The risks of such occurrenceare limited however because the Action Plan has been formulatedthrough an intensivedialogue between all parties involved. The actions to be taken are well defined and have been carefully staged;many are alreadywell prepared andlor included in reforms which are underway. Secondly,the civil works program may not proceed as scheduledbecause of lack of financingor insufficientimplementation capa- bility. These risks have been addressedduring project formulation. The three year expenditure program is based essentiaLlyon firm ind-.cationsof foreign funding and a moderate growth of local funding,well below that which GOI is planning during its Economic DevelopmentPlan, Repelita V. DGH and the provincialDBMs have also shown in recent years that their implementation capacitywas increasingrapidly. They have performed satisfactorilyunder the previous Bank-financedprojects. DGH has strengthenedits control and super- vision functionsand should be able to perform well in a more decentralized environmentif its technicalauthority over the DBMs remains strong. The Bank loan will also finance a relativelylarge program of training and of technical support to central and provincialstaff which will help meet implementation targets. For both the policy and institutionalimprovements and the civil works program, the annual ImplementationReviews are expected to be a useful tool to identify and address issues systematicallyand mobilize support for an early resolution. The annual reviews of the rolled-overexpenditure plan and the new budget will also ensure that the civil works program supportedby the Bank is adjustedwhenever necessarywith referenceto the most current needs and takes implementationconstraints fully into account. - 45 -
6. AGREEMENTSREACHED AND RECOIMMNDATIONS
6.1 During negotiations,agreement was reachedwith GOls
(a) (i) On the Policy Statementand Action Plan; and (ii) that any material changes to the Action Plan would be made in consultation with the Bank (para. 3.1).
(b) On annual implementationreviews of the Action Plan and of perfo-m- ance under the 1989/90, 1990/91 and 1991/92work programs and bud- gets no later than March 31, 1990, 1991 and 1992 (para. 3.1);
(c) that it would (i) starting in its fiscal year 1989/90,prepare annually a draft rolled-overexpenditure plan for the following three fiscal years for all inter-urbannational and provincialroads on the basis of a reasonableforecast of available local and foreign furds and in accordancewith a methodologyacceptable to the Bank; and (ii) provide the Bank with such draft no later than December 1, 1989 and 1990, discuss it with the Bank, and, soon thereafter,issue it, taking the Bank's comments into account (para. 3.14);
(d! that (i) its 1990/91 and 1991/92work programs and budgets would satisfy economic and technicalcriteria acceptableto the Bank; and (ii) it would provide the Bank with a draft work program and budget for its review and comments no later than February 28 of 1990 and 1991 (paras. 3.16);
(e) that, before authorizingthe implementatioiof any toll road project, it would carry out, or cause to be carried out, a feasi- bility study based on generallyrecognized sound economic and environmentalmethodologies and give the Bank an opportunityto comment on the results of the study (para. 3.18);
(f) on a first list of equipmentto be financedunder the loan (paras. 4.21 and 4.22);
(g) on terms of referencefor consultancyservices (paras.4.8, 4.9, 4.13, 4.14 and 4.27);
(h) that no withdrawals shall be made in respect of subprojects contractedt (i) after March 31, 1990 but before April 1, 1991, on account of payments made for expendituresuntil the work program and budget fir FY1990/91 for interurbannational and provincialroads have been prepared in accordancewith economic and technicalcri- teria satisfactoryto the Bank, and the Bank is satisfiedwith the progress made in the implementationof the work program and budget for FY1989/90;and (ii) after March 31, 1991, on account of payments made for expendituresuntil the work program and budget for inter- urban national and provincialroads for FY91/92 have been prepared in accordancewith economic and technicalcriteria satisfactoryto the Bank, and the Bank is satisfiedwith the progress made in the implementationof the work program and budget for FY1990/91 (para. 4.45); and
(i) procurementprocedures (paras.4.36 - 4.42). _ 46 -
6 2 on the basis th.eabove agreements,the project is suitable for a Bank loan of US$350.0 million equivalentto the Republic of Indonesiafor 20 ysurs, including5 years of grace, at the Bank's standardvariable interest rate. - 47 - Aianex 1 Page 1 of 16
GOVERNMENT OF THE REPUBLIC OF INDONESIA
I I I
I STATEMNT OF POLICIES OW ROXD INFRASTRUCTURE AND ROAD TRAFFIC AND TRANSPORT
October 10, 1989 - 48 - Annex 1 Page 2 of 16
Government of the Republic of Indonesia POLICIES ON ROAD INFRASTRUCTURE AND ROAD TRAFFIC AND TRANSPORT
1. INTRODUCTION Transport plays a crucial role in Indonesia's national development by supporting and promoting the realisation of the Development Trilogy (Trilogi Pembangunan) and Archipe- lagic Principle (Wawasan Nusantara), two concepts which together embody the goals of rapid and sustainable economic growth, social equity, and national economic integration, unity and stability. In addition to serving the evolving needs of other sectors of the economy, devel- opment of the transport system supports the opening up of remote areas, provides access to otherwise isolated communities and, more generally, permits increased per- sonal mobility. While all modes contribute to the proper functioning of the country's transport system, road occupies a particularly important position as is reflected by its dominant share of total transport activity and spending. The Government's successive five-year plans have stressed that transport services should be capable of satisfying demand in an efficient, safe, fast, reliable, orderly a- affordable manner and have allocated the large public expenditures needed for the pursuit of these goals. The first four plans placed heavy emphasis on the rehabilita- tion and expansion of transport infrastructure and fleets, with increased attention being directed to their maintenance during the latter part of REPELITA IV. The transport component ox:REPELITA V provides for the con- tinuation of these programs but accords highest priority to the refinement and better integration policies and the optimisation of public sector investment and operational planning with the goal of improving efficiency and thereby reducing overall transport system costs. With major changes already implemented in the maritime transport sub- sector, attention in the coming years will be concentrated increasingly on land transport and, in particular, roads and road traffic and transport. This document elaborates the key policies which will shape the development of the road system and road traffic and transport during the REPELITA V period and beyond. It focuses especially on inter-urban (national and provin- cial) roads and their usage and also references, where applicable, complementary policies relating to other modes. The Government's program for implementing these policies up until mid-1992 is set out in a separate docu- ment. Annex 1 Page 3 of 16
2. BACKGROUUD Considerable progress and achievements have been recorded in the land transport subsector during the last 20 years. Yet for various interrelated reasons the costs of road transportation remain significantly higher than they need be. Vehicle operating costs are raised by the poor stan- dard and condition of much of the road network, while com- paratively few arterial links have been designed and constructed to the structural and geometric standards needed to permit the use of the most efficient multi-axled truck-trailer combinations. Overly restrictive and unevenly applied road traffic and transport regulations have militated against the introduction of new technol- ogies; for example, the present vehicle height limit means that standard containers may only be transported on public roads by special dispensation. In some instances, these regulations have also served to protect inefficient and unresponsive public transport operators from healthy competition. The present structure and level of road user taxes also serves to promote inefficiency. While total receipts from road users are now at a level comparable with total public spending on the road network, operators of large trucks are required to pay little if any of the infrastructure costs attributable to them. Consequently the pattern of demand between modes tends to be distorted, with road carrying some traffics for which other modes - such as rail - are inherently better suited. Equally importantly, the structure of road user taxes provides no incentive for truck operators to invest in the types of multi-axled vehicles which reduce road pavement damage. Major advances have been made in the planning, program- ming, budgeting and execution of works on the national and provincial road networks during the 1980s. In particular, the increased level of expenditures now being allocated to road maintenance is better matched to needs while the switch to contract maintenance has resulted in the avail- able resources being used more effectively. Further work is still needed to refine and consolidate the use of these new systems and procedures, however, and to supplement them with improved methods for planning major new invest- ment projects - particularly in densely trafficked corri- dors - and for deciding between alternative road pavement and bridge materials and technologies. While the development and maintenance of the road network is handled mainly by the public sector, most road trans- port services are provided by the private sector. In the more developed regions, operators of road freight transport services and inter-urban passenger transport services are reasonably efficient, competitive, and responsive to their users' requirements. The larger firms _ - Annex1 Page 4 of 16
tend to be financially sound and competent in managing their businesses and maintaining and operatinq their vehicles. Many smaller operators, however, which lack the skills and other resources needed to compete successfully with their more efficient counterparts, neglect vehicle maintenance or resort to heavy overloading in their struggle to stay in business. High road traffic accident rates, which impose high human and material costs, are attributable in large measure to inadequacies in safety-related regulations and their lax administration and enforcement. Poor driver behaviour and inadequately equipped and maintained vehicles are visible symptoms of these problems, with poor vehicle maintenance also contributing significantly to atmospheric pollution in the major cities. Other important causes of road acci- dents include poor road conditions and markings, the mix- ing of fast and slow moving vehicles in the traffic stream, and vehicle overloading. Ineffective enforcement of vehicle loading regulations has also resulted in excessive damage to road pavements, hence adding to main- tenance costs and, in the interim, raising vebicle operat- ing costs.
3. POLICY STATEMENT The Government is committed to the adoption of policies which will permit and promote the development of a trans- port system capable of responding quickly and efficiently to the nation's growing and increasingly sophisticated transport needs. In the land transport subsector, the basic objective is to move towards situation characterised by: (a) a neutral and well administered regulatory regime under which operators will be able - subject to compliance with appropriate safety and environmental standards - to tailor their facilities and services to users' require- ments without the distortions imposed by subsidies and unnecessary quantitative restrictions on entry, routes, fleet sizes, and service frequencies; and (b) effective and efficient programs of public spending on infrastruc- ture and services in those fields which properly remain within the public domain. In order to achieve these goals - and thereby contribute significantly to the reduction of overall transport system costs - the Government has formulated a carefully con- ceived and integrated set of policies covering seven key areas. The three fundamental policies concern improvements to the basic framework and mechanisms through which the Government plans, administers, participates in and influences the development and use of the road system. They involve: - 51- Annex 1 Page 5 of 16
(a) finalisingand implementinga modern and coherent legal and regulatory frameworkfor road traffic and transport in place of the outdated and fragmentedbody of regulationswhich now applies; (b) strengtheningthe capabilitiesand improving the effi- ciency and effectivenessof the central and regional government departmentsand agencies responsible for the development and maintenance of the road network and for the implementationand enforcementof road traffic and transport regulations; (c) improvingcoordination and integrationof transport sector policy formulationand planning, particularly in respect of competing land transportmodes. The other four policies relate to specific areas where improvements in current arrangements and practices are expected to yield major increases in efficiency and/or reductions in economic and social costs. They involve: (a) continuing to refine and consolidatethe implementa- tion of recently developed systems and procedures for the planning, programmingand budgeting of road expendituresand the execution and supervisionof road works; (b) revising progressivelythe structureand level of road user taxes; (c) amending and simplifyingvehicle weight and dimensions limits and the road load-bearingclassification; and (d) improving road traffic safety.
Policy 1: Legal and Regulatory Reform A comprehensive and integrated body of laws and regula- tions, covering Road Vehicles, Road Traffic and Road Transport,will be introduced in place of the outdated and fragmented regulationswhich now apply. The aims and principles will be to: (a) create a sound and coherent legal and regulatory basis for administeringand controllingthe use of the public road network; (b) delineate clearly and appropriately,in accordance with the Government'spolicies on decentralisation, the roles and functionsof the central and regional government agencies involved in these matters; (c) incorporateinto the regulatory framework such provi- sions - concerningvehicles, their operation, and the provision of public transport services - as are needed to preserve public infrastructure, ensure adequate standards of safety, safeguard users' interests and protect the environmentand the community in general; -52- Annex 1 Page 6 of 16
(d) eliminate or relax controls which protect inefficient and unresponsive roal transport operators or promote inefficient operations, and thereby create an environ- ment conducive to the development of an efficient and professional road transport industry.
Policy 2: Institutional Development and Coordination
The execution of government functions will be made more efficient and effective. This will involve: (a) creating a competent, professional and streamlined administration within which each agency, whether at the centril or regional level, has clearly defined duties, is appropriately organised to perform them, is accountable for its performance and is equipped with appropriate management information systems and tech- niques; (b) ensuring more effective coordination between the vari- olis institutions involved in road infrastructure and road traffic and transport matters. The structure of institutions, whether at central or regional levels, will be made compatible with a rational and streamlined division of responsibilities. Neasures will be taken to refine job descriptions, to provide appropriate job-oriented training, to improve manpower planning, to introduce and implement better information systems and management methods, and to strengthen channels for coordination.
Policy 3: Integration of Transport sector Policy Formula- tion and Planning The formulation and execution of regulatory, pricing, investment and operational policies for the respective transport modes will be more closely integrated. Public sector investment planning will be carried out using sound economic criteria and with improved coordination between the relevant government agencies, particularly for key corridors in which alternative modes can or could compete. Where appropriate, private-sector participation in the provision of transport services and facilities will be facilitated. The aims of these improvements will be to: (a) ensure that optimal use is made of existing transport infrastructure and facilities before undertaking major new investments; (b) ensure that each mode is allowed to play its proper role within the transport system as a whole, with account taken of its comparative economic advantages; _ 53 - Annex 1 Page 7 of 16
(c) ensure that investments in new infrastructure and facilities represent the most efficient means of pro- viding needed additional capacity when viewed in the context of the transport system as a whole; (d) promote and facilitate the development of intermo- dal/multimodal door-to-door transport operations and the introduction of improved cargo handling and transhipment arrangements.
Policy 4: Planning, Programing and Execution of Road Works Resources for road maintenance and development will be allocated so as to maximise their overall economic and social benefits and minimise environmental damage. In particular: (a) adequate resources will be allocated for the routine and periodic mapitenance of the existing road network, including newly constructed and upgraded links; (b) decisions concerning investments in additional road capacity in he&vily trafficked corridors will be based on a rigourous economic and environmental appraisal of possible alternative options; (c) the geometry and pavements of key road links will be upgraded when economically appropriate so as to permit them to carry more economical multi-axle vehicles; (d) works will be carried out in compliance with specifi- cations, with management, administrative and supervis- ory arrangements appropriate to the circumstances. The efficiency and effectiveness of expenditure on road infrastructure by all levels of government will be improved by the continuing development of planning, pro- gramming and budgeting methods (including methods for evaluating the environmental impact of major projects), by the further refinement of technical standards and arrange- ments for the execution of road works, and by the strengthening of procedures for supervision and quality control.
Policy 5: Road User Taxation The Government will progressively implement an integrated and soundly based "user pays" approach to road user tax- ation, with particular attention being given to the pric- ing and taxation of petroleum fuels and to the structure and rates of vehicle registration charges. This will be designed to: - 5s4 - Annex 1 Page 8 of 16
(a) ensure that road user tax payments by the operators of different categories of vehicle at least cover the road infrastructure costs which they respectively impose; (b) eliminate subsidies or cross-subsidies, particularly to users of heavy commercial vehicles, which may dis- tort patterns of demand for road and competing trans- port modes; (c) induce road users to make vehicle investment and oper- ating decisions which are economically optimal; (d) mobilise increased resources for financing the main- tenance and development of the road network.
Policy 6: Vehicle Weight and Dimensions Limits Existing weight and dimension limits for road vehicles will be revised and better and more closely integrated arrangements introduced for vehicle "plWting" and for road load-bearing classification and signing. These changes will be designed to: (a) permit the operation of more economical vehicle types, particularly larger multi-axle trucks, on key trunk routes with suitably constructed pavements and geometry; (b) establish appropriate vehicle weight and dimension limits for other lower-standard roads so as to contain damage to pavements, improve safety and protect the interests of adjacent communities; (c) facilitate improved compliance with, and more effec- tive enforcement of, applicable limits.
Policy 7: Traffic Safety The Government will prepare and implement an integrated program of measures designed to bring about a rapid and significant reduction in accident rates. Particular attention will be given to securing the active participa- tion of, and improved coordination between, all relevant government and non-government agencies, and to raising the public's safety awareness and consciousness. Govent of the Republicof Indouesia
POLICIESFOR ROAD INFRASTRUCll)RB AND ROAD TRAFIFC AND TRANSPORT
SHORT-TERMACTtON PROGRAM (Peaidto Eon-1992)
Octar 10, 989
0O N1 0 a' -56- Annex Page 10 of 16
49
- I~~to
5~ 0i~ S E j1i22l§ii a~~~~~~~~~~~~~~~~~~~~a POUaES MORROADS AND ROAD TRAPPIC AND TRANSPORT
(Pd to Ed-1992)
Rd Actin Apmel Star Compl-te Conmeutaj No. Deacrption Reponsble ByEnd ByEnd Crow Rererdm
A. LALAZRYEFRM
A.l EDtblskMOC working tenVs to rvIew ad finedraft ww lawand MOC lglBDorn Sep 199 Dft ew lawad ORs d by DOLCc tas qui eview. GRsanr d tmffic nd trmpt md key subordbuaterplations DGLC Workingteam/a, to be establi by Kqmn wi b rprnstlPRple of odter unitsideputmets as ,ppropte. A.2 Detlrae tresposibily for the Implementiti of red tic and MOC Lepal ruea Dec 1989 DnRafOR jrepred by MOC and MHA rw ben for sita umupoit regulatla. to Tk lil regial govemumsa. DCILC e es Rosd Ta nd Trnapat La. lhis will ddis the Inuu- MHA dG55 bss for Iblhing the w a ORs c radtw and t (se A.3, AR),It wouldprovide a amy sataats badsh< DinssL4 1 [wilts,k and would permit essaMp tofD lnu U RTkU units Things tentaln:;depends onhc prinsofdOoutev_lewlapprvL AJ3 Feisedra of ew lw to govern oad tmfc and baIpt matenad MOC pelBuDa Onping Dec 1989 TminofeactmentldepedaPDIRp wgr Curatyamaiysd utdmt to DPR DOLC tat enactme wil be wih ncmemt_-uronlsed of new taw fr othe nuspr modes,hat submIsIo mayprocee IndpendentlyIf theeapp ikelyto bedelayed. A.4 Fislisednftsand btin Qovamnent approa of new ORs on rid MOC LepI BSoa Ongoing Apr1990 Corsulan'drafts aebeg adoWfor..vlewadc.mneutdSngSep I veltid read utafi a rand tra t andemcited implemeting DWLC 1919. TheOR ar imeaded_ to he Isue ner de nw law (e dA3) but s decisesandregukadhs. willbe Issud mderdorh lw AbouldIsnetnam be delayed. -. Certainwubodinsta deeand wlbel dt dte samnet will follw the relka decils have be taeL
L. INlUINL DLO ADCOORD INATION a I Riulse new pa oatlngute for DOLC. MOC Lepga Duma Completed oaognisati n fre.bymerthalunmode,wis by leelweeIse sKp 31989 InMay. Isueentto wiss appoin_mnt of staf to new , .2 FPhlbe ornandon mictures for 1lan aIn 11 regiol govauet DGLC Feb1940I wI bep d by DWLC,tking tdeevt gudn LLAIR uin MHA = 0esatiofu govamem M Thesemlts. wiM be dAa , ~~~~~~~~~~~~~~~~~~toMHA for bsu aXe a.3 Pear dailed job d ipdaj.s *ad oe atin nd jecesrau pule. DGLC Apr 1990 Dec 1990 This tak wll inclhdepeparai of guiddee Fr LLAR anff I MOC li for DOWLCto hplemet ne don uct Knwil The - will lsnocoveraInternal end e_ al rIn arrangemans. .4 Pe e lfor the upgdig of DOLC's manageme and DWLC Jun1990 Apr1991 Thbes wil provide ford Inprovesnpatd . mtad extnio elin~~~~icstl of exbsX "cmn R-omuWd on p,pw analysis d report will tak acn of DOL's re v ha agencies. 5 Prepare a fpbaa n Qornairng and emar deveonmet whin DWLC an 1991 Jun 1991 To Ichude preparto of a crefWly tgeted d9°° DOWLC. MOC DIILAT vtl alning proam ampassg JRnits i t MOC 8In- MOC Peraonnel Burea Was.
0
PrintDatw. October10, 1919 POICIES FORROADS AND ROAD TRAMFC AND TRANSPORT
Rot Actin gnce Sftar Complet Commetal No. DescriptIon RBpnil y Enid ByEnd CramRefetmee
9.6 PaRpassSukldelimns on x atLonofdeceotrsedrod trafficand DGLC Apr 1990 Jun11 au post (Atwdra forlana toT I1and 1 regiona govmmat ULAZR MHA Folwn ecmlsta (meA.2), DOIW will berepuldferestsb- tL Bakogda&dn tehita satmulda.guidelines ant pondr for toedtraffic and rtimlmsS and TknIT and!! ULA3Rait wHilbe aepmdbl for dvrk
C I A8prov andrelase FY85W9Rupiah bundget for Nadotia O-D Swve Bappeoua Sep1989 Doge ltopuI mabnmifledtomB:passe by DOLCandMOC arnueL*y. 'lout camt(NWa and no-odcosPnparat). Loa ot ooe o imnigby Jag=EuiniBn AinocladTA sewiut~lnanzd IBRD Loon25-IND. (NounrSmme of Inoweladvafedusudetiditing Is undway.) C-2 Canmugecondluct of Noatdis O-DSurve of rond sesDGOC NOV19399Peart worklusarsed roiy ilI.gwet uesiuaea DGH m n so mntpeatbanmertystarittaLTDP43stoy7(m TrafficPolice C6). ln withamovys of nawc-oadmode1 e.ential. C-3 Complee O-Ddatabase fo Sumtnaer.Jaws and BaiH(foad and non-weadDGOC Fab 1990 Datato be p..aw.d.toa sagwbeaaoenbe uedbyAm LTDP-.Ustdy.~ mods). DGN Anyde!7,Inswotm "a
CA Omnpieteconduct, analyslis sal sporstagof Nsdoo..IO-DSurvey for MOC PlanningDrfAes Dee 1989 mo-fad modeLc L Cs Completeconduce, aalysis androrng of NationalO-D Survey of DOWC Nov1990 rOad 1ess DGHI
C.# Cmahe LandTranpast DevelopmesaPlan - Pha U study. DOLC Fab1990 Aug 1991 ThIsstudy willmreommnd outbe~,ollanmous*doonn
cnhan proposed Studywill meno lpeuaimfeue 0.D dataIs nearigcopeto
C.? Prepar agoendand budgetfor firm(1990) annual worimbop on bmee MOC PlanningDures Jan 1990 Theannua worksaops will pravhde a forumtfor teeiug fifma greed 'rnpotpokiyformultation and planning. ta.dsuls fpilnsadIse,adlstfctodau wOactoPsntdpant willinchue mdl-ee tfsmterlvn goeonegencies together with reIesnale -oifuspu opeat
C.U Hold1990 wetnsbopcan Interted ausasp policyflonmulation, and MOC PlaenninDoars iun 1990 ThIstak wil clde corInatmIngpreptratimon Planing o(osp- paps,oduc. Ingeditedworitshosp-cmaliopandlpteps:nga esecotimesummary of mcommeaMmor cousleastloo,by senio managemen of agpnces
PfiznDfte: 0-1 er0, 1989 P POUCIESIFR ROGDS AND ROAD TRAFIMC AND TRANSPORT SUCR-SR ACnoN 'WAf Ref Aetion Anekns Start Compkit Commentef No. Description Responsible DyEnd ByEnd Cro ererenes
D. ING ANDEXECUTION OF ROAD WORKS
D.l Cmpletedeelopmentard bnplkematln f the ted planing. DGH Ongoing Dee1990 ToInlde pep-dtionofualbandcoductdiftainin. peogramminbWlgeting and desgn (PPB&D sByse Cr theamie-. sane d bee t o fatblom snd pvincialb sb. Di P est of Intial ape c of usingtheintegrated DGH Oct19 Mar 1990 sys&Dtesadan salon prga forits furtherimrvemen. D3 Desig c b...c. a imped p imofi for tbe DGH Aug 1989 Dec 1990 Tobe cldoy coordinad withactiit withthe iniuucd of nsd i ofbc a p ig dat (rcadconitiotn DULC ewvehicle weight ad dinmkia (VWD)Umits ad trafic, incd g weigh-In-motio sveys).
DA Conuc in fideew XoftholoddeveopmeujpogmanpepaPT Jm Mrga Sep1989 Jan1990 Tolmodcdvelopinmpogr reviewbanlreadycmmeed guilila esmthe aalysis of propsl forthe cotnaction of newhigh DCII capacityoads. DOLC DJ PoaWlsiad imtuplmnentimpved ngementaatdprmedum for DGII Jan1990 Dec1990 Thb will Igvolvetheri andtI vemepntof theInitiation, conduct reviewof fasiility for n-is DPUPi Accountwill betaken of mehdloIes -doped = DI to Df4and am pmpmlband otber expediture sttegies no coveredby te theLTDP-I study. Puticus emplmsswil tL pai co y fat PPD&Dsystem. evaluatingppropoubs designedd tot pamitmw maedi h,gecibtavlerehiclesd
D6 r m tachia guidelineson the usw of Pordlnd mnu DCH Ongoing Mar1990 Theguidelnes will s outthe aprh nd n to be d in ccnauteforoad pavements. IRE onderto omakb coi.amr Uy undchoics be rgid and feibiepave- met for havily stiked roads. D.7 Prepre sa bm tehiald udeinesn theon of Abton forroad DGH Ongoing M r1990 IbepgidelIn wil onot theappoch sad stnda to be t in pov IRE oder tomake ecomicaUy An chic b e Aenm =onalte ie pavemntmatesb for lightlymtawded rods. DA Pree andise tebcl guidelineson the use of teelMts a DH Ongoing Jua1990 Thegidenes will m outthe appoch rnd stand I to beadoptd In reinford cOnretebridgOes. IRE eider tomake ecowmically oud ehicbetwen alernativerd teda- nologi. DS Prepr at prga forthe prwdon of stadardssad codes of DGII Jun1990 practice(SICP) for fooddesip coandestmonIn Indonesia. IRE
D.10 Prpae gidilon ft a esmgand mnimising the qivhmemul DGH Jul1990 Dec1991 Imnpat(El) of ad pnct. MPW LITRANG D.1l Pqiwe an insturocedrl i uctionaon the oppiatimn d El DCH Jn 1992 Jun1992 net and mLstion guidelins MrW LIT0ANG D.12 Cdt traindinonEl menmatand mm forroad proju DGH Jan992 Dee1992 fo a ctumgrop of DGHtsd DPUPpeesonnel. MPWLITIANG
D.13 Reviewnd ve protedumefor thepre-qafilcation of contrs for DCII Aug1990 mad prjcs X D.14 Prepa madiue guideieson theselection of pojectand sub-project DGH Ongoing Jan1991 M gen(Pmpo od Pimhgpro).
Pit Date:October 10, 1989 POUCIS M'RROADS AND ROADTRAMI C ANDTRANSPCORT
Ret Action Agen Start Complt Comment/ No.L Descrption Responsible By End ByEnd Cron Refemma
D.IS P_pr ad bsue vied manat anrod projet avlsoa DGH Ongoing Jan1991 D.16 ad o amdbnsftutl n gm fortde tchnial PWH Jan1990 Dec1991 lk oeview ofadp D.17 Conduct bt gon wod nm mt eollection.cd p Wll Apr 1990 Jun1992 , den, i d Melting ace pouptd MPWDIKLAT DC58D"M pers1M eI D.18 p rormtte tppo dpo lofradp eqdpmtad DCH II ,1991 Inidi boetr v at eat 5,kWSPOp pbea d ep m ImplementInItial pause. DPUP-DBMs D.19 I e pestrpduate ital jorm for hig Y egnew at DWN Oct19 Sep1992 flUZ MPWDIELAT D.210 S gtre Din DS Maip apablks in thephumi program- DGH Jan 1990 mtu 1992 mig, desig d cetbl superviontofrork DPtJPaDBMs 21 lmpo ojtmonitelog p dH Mar1990
E IRAD1UA6XIQ
BI EBOA MOCTechnical Team to onitord adequacyNWd rppr - MOCStpen Sep1919 Daft Kqe d ead toa em entled. Tktnomt _ fed pevalItg rmod er raatln (ROT) ednm andto reconm- e , rswt c e fi d o ee desiable chne to ta utur and1vev.I .nrbma I
12 Deveop andassess die expeced lmpcseof aitermntiveoptions forthe MOC RtrTTeam Oct 1989 Mr 1990 Tibi will I lideeis-f-, smudtveot forh plaedratnllatiof de p RUTregime aid fnonulaterecm- p un fuels(adticaty te diael)and the tt f vehid. b_td rr ammd of t sic
U3 Conveefirm mnial indterdpartmntameeits n roadwfe uatl MOCSen Apr1990 Thesebigh-level (dahia I) mold umap willcoMartlsidinp ad rwommiwmm OftbefMOC Tecil TeM sd fh es recmmend- tiosforsubmissionbtoCamet.Supplementary mesopwille held. required EL4 F atablh nw bai forware egItato taxon commerial vehicles MBA Ju 1990 Thenew m of vewhide matu for emumcial veice wU whkbwill dqutdy reletir rnodpavement dameig ptt. MOC be bsed on lden aleb loads rth1 5e MOF inetves fcr dieuse of kW-t rmgi MMW DetailswbeibislkieI cc tiewith urshamun vluAe
LS Announceanagreed phaned ptuo am of ages to RU sructuesand MHA Dec 1990 Publcationi adv will allow e rdthr 1vektih tbheaim that r Vt r mch cba of vehidewit MOC plas forfe fleetdevewlme r not klosth eir rbtble economiccamIS of rooddevelop- MOF mat, mainena andadmhbrlflrl by 1994. MPW E6 In acodae withthe phasedpr nowtuednderEli.np MHA Dec 1990 S ut nd o as ntht. oresult ofthehaas,RUT I mm a ne vei regsl ma cture ith a s nt in e MOF d recip for eld ic1 w vr a lut 25%of tki a Inoratesforcamrclaveircis HOCSeen ecnmc cmCodrtnto be giertopriigpyetby * gi raInsalmm M fto toaotoftl1o the eailingnitiarlimpac on.mmoprcssofodhrtt Apte4l X
Pit DateOctober 10, IM 0'
1 61 PageAnnex 15 1 of 16
Zd id I .~~~~~~~~~~~~~~~~~ Is~~~~;
.iniS 1S 1.111 '
i ii 2I II X POUCIES FOR ROADSAND ROADTRAPI7C AND TRANSPORT
Ret Action Agenda, Stim Complete Commanaj No. Deseiptihn Responible By nd y End Crom iRefen
.9 Dei- and coduct awaem capaigns to alert commercial vehcle DGLC Mar 1990 Feb 1992 To be planned and implemnted in clan cmltdsl wib OROANDA. opetom to the private ind p c comtsof vehicle overloading nrdto ldae the oe amet's policy andpogm for the refom of VWCD dts and RUT. P.10 A neeband p rAeplsn for traing ofroad tranpt DGLC Nov 1989 Needs t sudy aleady wAerway, inee ecomdtm with operF OR(IANDA. FollowingXOLCtview.daimftod aii ,tprz wh can ihe coaduLed at ka laity by TrnusportColleg at Bckasi.
G. TRAMC SAIZH
0.1 Ppare pogram andbudget for frstnml woo om toad traffic DGLC Dec 1989 May 1990 Wo p participansto eVbdr owtoctiono MMY. &K;&-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~sennld aws of ngag for 0.2 Carse fist mma workshop rod traffic ufety. DGC Ju11990 To incude e of editedd dtofmmy madations for o ated by all iwoved banit. o gov ad oner agac es od - -- 03 rajraandplensptppoam of rmedil mea. for wort DGC Apr1990 Jun 1991 To ctkudeahedlpand e maadcmoauam rh accident blak4p. . inter-unbannai in Sm and Sumt.. DOH effctdvens (to he tedwittankG ialrmaltobeenai TrafficPalloe sledank forfolow-npiapped CQoaSarUtMUIewitli IUDP-I TMPPPI cmkUan equired a.4 Firulise nd implementImpved road trffic aciden dataeclection DGw Apr1990 Mar 1991 Impved accident datacoilect famsdevepalby RnwDq proceduresudest.ih imda-,ang entafor theaalysis ad DOH testedbiw Poll. rporting ege nto of rmd traffic t. IRE t t atiC POte cenal a el o dto Thffic PoUce im i del kimdo ros f the agWen l i lu acicdmu data aul s and utinLlm t coame bhimgeo.- l1ntye id c. ,on (me 03). oke eo otluul
05 piep ilandprfo impvns the enfe ofregulail DWLC Octl 1990 Maul99r The1p1I b wil be d nspedto help co tdote de reat to elicl an baffle sy. i Tnflic Poiaeo tbe rI nffk and anoi andregul btipdcno bing deared #1 effectively. Theywilinelude (a) X Telf tflin TAandequip mentreqiemns lb) d.lnand plenn of pulcaw_empl and (c) tedcal gipell e I.etoTIlmd 1 LAIRu (tohe coariutted wtbhtnsk B.?).
a14
ihbitilse OCtZ*et1O, 19gt ov~~~~~~~~~~~~~~~~~~~~~~
* _l | | _~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - 63 - ANNEX 2 Page 1 of 2
INDONESIA
HIGHWAY SECTOR LOAN
Agreed Methodology for Three-YearExpenditure Plan and Technicaland Economic Criteria for Annual Work Program and Budget
Three-year ExpenditurePlan
1. The rolling three year expenditureplan will be prepared in accor- dance with a methodology similar to that used for preparingthe 1989-90 to 1991-92 plan (whichwas based on the planning and programmingprocedures deve- loped during the ADB financed "TAPLO Project). Two main steps will be followed: (i) optimum treatmentswill be determinedfor each sub-roadlink(or segment) on the basis of an optimizationmodel such as the Bank's Highway Design Model with appropriateadaptation to Indonesia'scircumstances; and (ii) a three-yearwork program will be formulatedmainly by schedulingthe implementationof optimum treatmentson sub-roadlinkson the basis of a simple ranking criterion giving priority to sub-roadlinksof higher economic returns, taking into account implementationcapability constraints and a reasonable forecast of available local and foreign funds based on past trends.
2. In addition the followingprinciples will apply:
(a) Routine maintenanceof roads and bridges and replacementof bridges which have exceeded their service life will be given first call on resources;
(b) Prioritywill be given to periodicmaintenance of roads in the allocationof all funds includingnon-committed or new foreign funds;
(c) To optimize the use of non-committedforeign funds, the ongoing project file will include only sub-projectsfor which there is a contract under executionor a committedforeign financedproject;
(d) The priority ranking of new works (and technicalstandard recommen- dations)will only be changed exceptionallyand for well justified reasons;
(e) New constructionof major improvementworks will only be included on the basis of a feasibilitystudy based on sound economic methodolo- gies showinghigh economic returns. The balance between new constructionand other types of activitieswill remain similar to that of the past few years and resourcesallocated to new construc- tion will not result in eliminationof the backlog of periodic main- tenance and bettermentbeing delayed beyond 1994. ANNEX2 - 64 - Page 2 of 2
(f) A major effort, includingthe settingup of data audit procedures, will be applied to ensure that the quality of traffic and road con- dition data is satisfactory.
Annual Work Program and Budget
3. An indicet ve work program and budget for national and provincial roads will be prepar d annually on the basis of the most likely scenario of funds availabilityand after discussionof the three-yearexpenditure plan between Central and Provincialauthorities. It will provide a list of all subprojectsto be continued or undertakenduring the year with mention of the treatments selected for each sub-roadlinkincluded in the subprojectand the cost of each subproject (preferablyafter preliminarydesign). Budget allocationswill be made with the objectiveof fulfillingthe indicativework program and budget.
4. The followingmain criteriawill be used in formulatingthe indica- tive work program and budgets
(a) The packaging of treatmentson sub-roadlinksinto subprojectswill be done so as not to upset the priority ranking of sub-roadlinks while ensuring viable contract packages;
(b) Available funds will be allocated as a priority to maintenance subprojects;
(c) Preliminary subprojects designs will be prepared for tender through DHG's Road Design System adjusted as necessary so that its output is consistentwith that of the optimizationmodel mentioned in para. 1 above and it incorporatesdesign philosophiessimilar to those used for the Implementationof the Bank-financedHighway Maintenanceand Betterment Project;
(d) An economic internal rate of return (ERR) will be calculated for all subprojectsand the total value of subprojectswith an ERR of less than 15Z will be less than 20Z of funds allocatedto non-maintenance or bridge replacement works. ANNEX 3 65 - Page 1 of 2
INDONESIA
HIGHWAY SECTOR PROJECT
Selected Documents and Data Available in the Proiect File
A. Documents,Reports and Studies Related to the Project
1. Technical Advisory Services to BIPRAN on Planning and Programming:
(i) Report on Background of the Roads Sector in Repelita V, draft, February 1989
(ii) System Design for Integrationand Existing Bina Marga Systems, February 1989
--> Volume 1, ConceptualDesign, draft, version 3 - Volume 3, PreliminarySystem Design, draft, version 3 - Volume 4, Appendices,draft, version 3
(iii) Bridge Budgets for RepelitaV, Memo, November 1988
2. Road Safety Component - Report by consultan's,June 30, 1988
3. Consulting Services for Road ImprovementProject, Five-YearDevelop- ment Plan for the National and ProvincialRoad Network, Final Report, Volumes 1, 1A and 1B, August 1988
4. Highway Transport Planning Project, Part E, Volume E-5, A Simplified Bridge ScreeningModel, Final Report, December 1986
5. Terms of referencefor all consultancyservices assignmentsshown in Table 4.3.
B. Selected Working Paper
1. DirectorateGeneral of Highways,Working Paper, April 1989
(i) Status of On-going Foreign Aid for Bridges (ii) Revised On-going Foreign Loans (iii) Revised Tables of Actual Expendituresand Budget Allocation (iv) Tables of UnconstrainedNeeds (v) Revised Five-YearProgram (vi) Revised Three-YearProgram
- 68 -
2. DirectorateGeneral of Highways,computer print-outs,June 1989
(i) Sublink Treatment of National and ProvincialRoads Program 1989190 -66- ANNEX 3 Page 2 of 2
(ii) Basil KesepakatanProgram in 1989/90 (Approved1989190 Budget)
(iii) Program PembinaanJalan TH 1989/90 IBRD HSL (List of Road SubprojectsProposed for IBRD Financing)
(iv) Summary Program by Lending Agency and Loan Number and by Program
(v) Summary of Three-yearProgram to be Financed by IBRD HSL
(vi) Program PenggatianJembatan 3 Takum (List of Bridge Subprojects Proposed for Lending Agencies includingIBRD)
C. Reports Related to the Sector/Subsector
1. The IndonesianRoad TransportRegulation, Driver Licensing and Motor Vehicle RegistrationPilot Project, Final Report, March 1989
- Road TransportLegislation Volumes Al, A2, A3.1, A3.2, A3.3, A3.4, A4
- Driver and Motor Vehicle AdministrationVolumes B1, B2, B3.1, B3.2, B3.3, B4, B5, B6.1, B6.2
2. Road User Charges Reviedws,Draft Final Report, May 1988
3. Transport Sector Overview, Bank Sector Report, July 1988
4. Highway MaintenanceReview, Bank Sector Report, July 1988. - 67 -
Table 1.1
INDONESIA
HIGHWAY SECTOR PROJECT
Domestic FreightMovements
Average Breakdown 1980 1981 1982 1983 1984 haul, 1982 by mode, 1982 - ---- million ton-km)------(km) (1)
Air la 50 56 54 52 50 970 0.1
Sea /a 13,992 14,300 15,235 15,850 16,468 550 41.8
Railway 962 969 885 916 1,173 205 2.4
Road - - 19,400 - - 111 53.2
River - - 890 1,120 - 166 2.5
Total 36.464 100.0
La Estimates based on (assumed)average haul.
Source: GOI (accurateton-km statisticsare mainly provided by GOI's national origin-destinationsurveys which are carried out every 5-7 years. The 1989 survey has not been completedyet). - 68 -
Table 1.2
INDONESIA
HIGHWAY SECTOR PROJECT
Domestic PassengerTraffic
Average trip Breakdown 1980 1981 1982 1983 length, 1982 by mode, 1982 - (millionpass-km) ------(km) (Z)
Air - - 4,120 3,100 1,294 4
Rail 6,089 6,166 6,293 6,105 152 5
Road - - 103,000 - 90 88
River - - 3,060 - 100 3
Total 116,473 100
Source: GOI (accuratepass-km statisticsare mainly provided by GOI's national origin-destination surveys which are carried out every 5-7 years. The 1989 survey has not been completed yet). Table 2.1
INDONESIA
HIGHWAY SECTOR PROJECT
Road Network Length by Road Class and Island Group (km)
Nusa /a Kali- Maluku & Road Class Sumatra Jakarta Java Bali Tenggara mantan Sulawesi Irian Jaya Indonesia
National Arterial 5,361 0 2,482 311 1,263 1,691 2,872 186 14,166 National Collector 534 0 310 0 274 258 130 545 2,051 National Local 198 0 0 3 387 0 0 0 588
All National 6,093 0 2,792 314 1,924 1,949 3,002 731 16,805
Provincial Arterial 768 0 127 0 13 243 787 31 1,969 Provincial Collector 9,370 0 6,168 467 1,767 3,309 4,311 2,316 27,708 Provincial Local 683 0 495 48 1,360 182 352 190 3,220
All Provincial 10,821 0 6,700 515 3.140 3.734 5.450 2,537 32,897
National & Provincial 16,914 9,492 829 5,064 5,683 8,452 3,268 49,702
District 44,948 0 44,157 4,639 15,470 14,592 24,192 6,172 154,170 Municipal 8,297 4,096 14,126 403 1,481 2,800 3,596 996 34,795 Transmigration 3,564 0 130 0 0 860 734 58 5,346
Grand Total 75,721 4,096 67,905 5,871 22,015 25,609 37,700 10,494 244,013
/a Including Timor Timur.
Source: DGH, February 1989 (latest reclassification not included). Table 2.2
- 70 - INDONESIA
HIGHWAYSECTOR PP.OJECT a' Road Network Density by Road Class and Island Group
Road Density/Land Area (km/ 000 km') Land area National Island Group ('000 km2) & Prov. District Other Total
Sumatra 473.6 35.7 94.9 29.3 159.9 Java /a 132.2 71.8 334.0 107.8 513.7 Bali 5.6 148.0 828.4 0.0 1,048.4 Nusatenggara /b 82.9 61.1 186.6 0.0 265.6 Ralimantan 539.5 10.5 27.0 9.9 47.5 Sulawesi 189.2 44.7 127.9 26.7 199.3 Makulu & Irian Jaya 496.5 6.6 12.4 2.1 21.1
Indonesia 1,919.5 25.9 80.3 23.7 129.9
Road Density/Population Estimated (km/'000 population) 1987 National Island Group population & Prov. District Other Total (million)
Sumatra 34.59 0.5 1.3 0.4 2.2 Java /a 103.28 0.1 0.4 0.1 0.7 Bali 2.72 0.3 1.7 0.1 2.2 Nusatenggara Lb 6.96 0.7 2.2 0.2 3.2 Kalimantan 8.14 0.7 1.8 0.7 3.1 Sulawesi 12.02 0.7 2.0 0.4 3.1 Makulu & Irian Jaya 3.15 1.0 2.0 0.3 3.3
Indonesia 170.86 0.3 0.9 0.3 1.5
/a Including D.K.I. Jakarta. /b including Timor Timur.
Source: DGH, February 1989.
Road Network Density in Select Countries
Total Total Country Km/1,000 sq km km/1,000 population
Indonesia 130 1.50 Malaysia 128 2.72 Philippines 537 2.91 India 488 2.43 Brazil 164 11.82 USA 673 28.02 71- - Table 2.3
SNDONSSIA
HIGHWAY SECTOR PROJECT
Road Pavementsby Road Class and Island Group
Road Java- Kali- Nusa Other class Sumatra Bali Jakarta mantan Sulawesi Tenggara Islands Indonesia.
National Paved 89 100 - 69 75 85 54 83 Unpaved 11 0 - 31 25 15 46 17
Total 100 100 - 100 100 100 100 100
Provincial Paved 73 97 - 37 60 50 35 66 Unpaved 27 3 - 63 40 50 65 34
Total 100 100 - 100 100 100 100 100
National & Paved 79 98 - 48 65 65 40 72 Provincial Unpaved 21 2 - 52 35 35 60 28 Total 100 100 - 100 100 100 100 100
District Paved 21 56 - 10 17 13 15 29 Unpaved 79 44 - 90 83 87 85 71
Total 100 100 - 100 100 100 100 100
Urban Paved 60 70 85 S8 66 63 69 67 Unpaved 40 30 15 42 34 37 31 33
Total 100 100 100 100 100 100 100 100
Grand Total Paved 38 64 85 23 32 28 27 43 Unpaved 62 36 15 77 68 72 73 57
Total 100 100 100 100 100 100 100 100
Note: Other Islands includesthe provincesof Maluku, Irian Jaya and Timor Timur. District Roads include Transmigrationand NESPIR roads.
Sources; DGH and Biro Pusat Statistik.February 1989. Table 2.4 - 72 -
INDONESTA
HIGHWAY SECTOR PROJECT
Conditionof the National and ProvincialRoad Network. 1988
Percentageof the National and Provincial Road Network in IndicatedCondition Island Good Fair Moderate Poor Bad Group IRI IRI IRI IRI IRI Total <4 4 - 6 6 - 8 8 - 12 >12
Sumatra 15 15 14 26 31 100 Java/Bali 36 19 16 27 2 100 Kalimantan 5 10 12 25 47 100 Other Isl-nds 7 5 15 31 42 100
Indonesia 16 12 14 ^s 30 100
Source: DGH, February 1989. 73 Table 2.5
INDONESIA
HIGHWAY SECTOR PROJECT
Registered Motor Vehicles, 1976-86 /ja
Year/ Goods period Buses vehicles Cars Total
Vehicle Numbers ('000)
1974 31.4 166.4 337.7 535.5 1975 35.9 189.5 378.0 603.4 1976 39.4 220.7 419.2 679.3 1977 46.6 268.1 471.1 785.8 1978 57.8 328.0 531.2 917.1 1979 69.5 383.6 581.5 1,034.7 1980 86.2 478.1 639.5 1,203.7 1981 112.1 590.5 722.4 1,203.7 1982 134.4 657.1 791.0 1,582.6 1983 160.3 717.9 869.0 1,748.1 1984 184.3 809.5 941.7 1,935.6 1985 228.2 844.4 997.3 2,069.8 1986 256.6 876.1 1,059.9 2,192.5
Annual Average Growth Rates (Z)
1976-86 20.6 14.8 9.7 12.4 1974-80 17.2 18.1 11.5 14.1 1979-82 24.6 19.6 10.8 15.2 1979-86 21.6 16.1 10.1 13.3 1982-86 17 5 7.5 9.1 7.5
/a Based on new vehicle registrations (without adequate allowarce for scrappings). lb Provisional figures.
Sources: Derived from Table V.1, Nota Keuangan dan Rancangan Anggaran Pendapatan dan Belanja Negara Tahun 1988-89, Republik Indonesia. Table 2.6
INDONESIA
HIGHWAYSECTOR PaOJECT
Distribution of Annual Vehicle-Kilometers by Road Class and Island Group (km million)
Island Total Total National & I Veh-km Group NA NK NL National PA PK PL Provincial Provincial Total Per capita
Sumatra 4,839 204 35 5,079 163 2,540 92 2,795 7,873 27.2 223 Java 6,765 423 0 7,168 129 6,091 303 6,523 13,711 47.4 141 Bali 493 0 7 500 0 285 35 320 821 2.8 298 Nusatenggara 463 64 0 527 16 285 112 414 941 3.3 145 Kalimantan 824 16 0 840 92 488 1^ 590 1,430 4.9 169 Sulawesi 1,980 26 0 2,006 561 1,164 83 1,809 3,814 13.2 310 1 Other 116 20 18 159 11 158 31 200 353 1.2 89 s
Indonesia 15,480 758 60 16,298 973 11,011 667 12,650 28,943 100.0 174
2 Total 58.5 2.6 0.2 56.3 3.4 38.0 2.3 43.7 100.0
Note: Java excludes D.K.I. Jakarta NA: National Arterial PAs Provincial Arterial Other includes Maluku, Irian Jaya NK: N-tional Collector PK: Provincial Collector and Timor Timur NL: National Local PL: Provincial Local
Source: DGE, February 1989. Table 2.7
INDONESIA
HIGHWAY SECTOR PROJECT
Mean TrafficLevels by Road Class and Island Group (AADT)
Total Total National & Island Group NA NK NL National PA PK PL Provincial Provincial
Sumatra 2,473 1,046 484 2,283 582 743 869 708 1,275 Java/Bali 7,121 3,744 5,527 6,783 2,790 2,633 2,043 2,599 3,858 Kalimantan 1,335 170 - 1,181 1,069 404 150 433 689 Sulawesi 1,950 549 - 1.887 1,953 740 646 909 1,250 Nusatenggara 938 640 - 888 3,469 442 766 519 676 Other Islands 1,708 100 128 377 958 187 74 157 210
Indonesia 2,994 1,006 279 2,656 1,352 1,089 567 1,053 1,595
Source: DGH, February1989. - 76 - Table 2.8 INDONESIA
HIGHWAYSECTOR PROJECT
Expendituresin Highway Sector 51984185 to 1988189) la (CurrentRp billion)
Type of road Type of activity 1984185 1985/36 1986/87 1987/88 1988/89 Source of funds (estimate)
National and ProvincialRoads Maintenance 141.0 154.1 164.7 258.7 448.4 Betterment 218.0 176.0 146.9 380.1 675.8 New construction 101.0 85.5 99.9 34.1 91.8 Bridge replacement 30.9 40.4 19.9 63.2 in Bett. TA/Administration lb 11.9 16.3 14.8 108.4 168.1 Equipment/Materials 57.1 109.1 118.8 126.5 188.9
Total 559.9 581.4 565.0 971.0 1,573.0
Central GOI funds 349.6 308.1 164.0 140.0 137.3 Inpres Dati I 88.0 100.2 97.0 121.3 190.9 Foreign aid 122.3 173.2 304.0 709.7 1,244.8
District Roads
Total 266.8 291.7 375.9 384.7 547.'
Inpres Jalan 80.1 87.5 130.0 130.0 180.0 Inpres Dati II 155.1 174.1 194.9 200.1 228.6 Other local funds 9.5 7.8 2.0 0.C 0.6 Fozeign aid 22.1 22.3 49.0 54.0 138.5
Toll Roads
Total 119.9 75.7 134.6 234.2 563.6
Central GOI funds 38.7 7.5 0.2 0.4 0.0 Jasa Uiarga 45.1 40.0 88.4 112.4 196.4 Foreign aid 36.1 28.2 46.0 121.4 367.2
Total 946.6 948.8 1,077.5 ',589.9 2,684.3 Local 766.1 723.1 676.5 704.8 933.8 Foreign 180.5 223.7 401.0 885.1 1,750.5
Total GOI funds /c as X of DevelopmentExpen4itures 9.5 8.4 11.9 15.5 22.0
/a Given remaining deficienciesin DGH's reporting system, these figures should be taken cautiously. lb Expendituresin this categorywere underreporteduntil recently. /c Total minus off-budgetfunds for toll roads.
Sourcet DGM, April 1989 Table 2.9 Page 1 of 2 INDONESIA
HIGHWAY SECTOR PROJECT
DGH GeometricDesign Standardsla
PrimaryHighways SecondaryHighways I II A IIB II C Moun- Moun- Moun- Moun- Terrain Flat Rolling tainous Flat Rolling tainous Flat Rc1ing tainous Flat Rolling tainous
Average daily traffic (ADT) in 20,000 6.000-20,000 1,500-8,000 <2,000 passengercar units Design speed (km/h) 120 100 co 100 80 60 80 50 40 60 40 30 Minimum right of way 60 60 60 40 40 40 30 30 30 30 30 30 (m) No. of lanes x pavementvidth (m) Minimum 4 x 3.75 2x3.50 or 4x3.50 2x3.50 2x3.5O Minimum median width 102 of roadway 1.51b - - (m) Shouloerwidth (m) 3.50 3.00 3.00 3.00 2.50 2.50 3.00 2.50 2.50 2.50 1.50 1.00 Pavement cross slope 22 22 22 3S Shouldercross slope 42 41 62 6S Surfacing AsphalticConcrete (AC) AC Id Id (hot mix) Maximum superelevation 102 lO 10 102 Minimum horizontal 560 350 210 350 210 115 210 115 50 115 50 30 radius (m) Mayimum grade 32 52 62 42 62 72 52 72 82 62 8S 102 la Pavementstructure is designedfor a design life of about ten years, unless another design life would be warranted. Bridges are designed in accordancewith DGH's 'Standar4Loading Specificationfor Sighway Bridges, 12/1970. L Only for 4-lane highways. jc Accordingto condition. /d Surfacingselected can vary from single bituminoussurface treatment to asphalticconcrete on the basis of economicconsiderations. Generally roads with the above design standardscan be varied flexiblyto suit special conditionsof traffic,land use or terrain.
Source: DirectorateGeneral of Highways.Standard Document No. 13/1970. Table 2.9 Page 2 of 2
DesignStandards for DistrictRoads and Bridges
Directorate General Bina Marga DESIGNCRITERIA Procedures of the preparation FOR of rural road programne Page Directorate of Rood Plannins KABUPATENROADS proposalsby KabupdtenStaff No. Road Classification Class III A Class III B Class III C Surface Asphalt Surface AsphaltNal Gravel Gravel TRAFFICVOJLUME :AT3.000 - S00 500 - 200 200 - s0o 50 (TrafficClasse (4 5 (3)8) (2) A 1(O) Flat to Mount- Flat to Mount- Flat to Mount- Flat to Mount- TERRAIN rolling Hilly ainous rolling Hilly alnous rolling Hilly ainous rolling Hilly ainous TrafficLanes 2 2 2 1. 1. 1. 1. 1. 14 1 1 1 Design lDesirable70 80 40 60 40 30 6o 40 30 60 s0 30 Speed (K/H) lMinimum 50 40 30 40 gO 30 40 30 30 30 30 30 Gradient IMaximum a 6 10 6 6 10 8 6 12 6 12 16 (Limiting) () lkinimum Pavemont lDesirable6.0 6.0 6.0 4.5 4.5 4.6 4.5 4.5 5.6 3.5 3.5 3.6 Width (M) lMinimum 4.5 4.5 4.5 3.5 3.5 3.5 3.5 3.5 8.5 3.0 3.0 3.0 Shoulder IDesirable 2.0 1.5 1.5 1.6 1.5 1.0 1.5 1.0 1.0 1.0 1.0 0.7S Width CM) :Minmum 1.5 1.0 0.75 1.0 1.0 0.76 1.0 0.75 0.76 0.76 0.6 0.6 Road Bed IDesirable10.0 9.0 9.0 7.5 7.5 6.6 7.5 6.5 6.5 5.5 5.6 6.0 Width (M) lMin mum 7.5 _ .6 e.0 6.6 5.5 5.0 5.5 6.0 4.S 4.6 4.0 4.0 Right IDesirable 16 - 12 1 1221 121U of Way (Row) lMinlmum 12 M 10 1 10 U 8 ex Road IPavement 3a 33 4X - 6X 4X - Camber (Maximum)IShoulder 4% - 65 65 - ax ex - 7x 6X - 7X Bride Width Length Deirabieoverall width 7.0 M 7.0 M 7.0 M 4.65 Se Without aidewalkemin 4. 5M 4.5 M 4. sM 4.6 M 6 - Desrabl- overallwidth 750 M 7.0 k 4.t M 4.5 M 8o M Without sidewalk(min) 4.6 M 4.5 M 4.6 M 4.5 L Desirableoverall Width 7.0 1 4.5s 4.6 M 4.5s > 80 HWithout sidewalk(min) 4.6 1 4.5 M 4.6 1 4.6 1 lmeprarrBrid e n mizum) 3.0 8 8.0 a.0 O Brids DesionLoading 78X am so 8" soX am sox mS
Source: DGH, February1969 - 79 - Table 3.1 Page 1 of 2
INDONESIA
HIGHWAY SECTOR PROJECT
Three-Year Expenditure Plan for National and Provincial Roads
A. Planned Expenditures
Activity 1989/90 1990/91 1991/92 Total ------(Current Rupiah billion) ------
Maintenance Roads Routine 27 45 80 152 Holding 111 127 71 308 Periodic 155 69 307 531 Bridges 20 17 21 58
Betterment Standard 526 780 487 1,793 Widening 32 69 75 176
Bridge Replacement Civil Works 76 41 86 203 Materials 82 83 81 246
New Construction/Upgrading Roads 15 31 46 92 Land acquisition 0 0 50 50 Bridges 5 6 7 18
Administration 181 220 246 647
Total 1,230 1,488 1,556 4,274 - 80 - Table 3.1 Page 2 of 2
B. Physical Targets
Activity 1989/90 1990/91 1991/92 Total -- (km of roads/m of bridges) -----
Maintenance Roads Routine 7,824 14,146 23,292 45,262 Holding 12,726 13,423 7,445 33,594 Periodic 3,598 2,694 2,214 8,505 Bridges 248,751 287,818 300.514 837,083
Betterment standard 8,905 6,690 3,412 19.007 Widening 212 425 465 1,102
Bridge Replacement 8,332 5,648 10,000 23,980
New Construction'Upgrading Roads 132 264 284 680 Bridges 766 844 931 2,541
Source: DGH, April 1989 - 81 - Table 3.2
INDONESIA
HIGHWAY SECTOR PROJECT
Main Ongoing and Committed Foreign Loans
Lending agency Loan Balance la or Country reference (US$ million) Comments
ADB 692 57.0 863 150.0
IBRD 2049 6.0 Part of loan balance to be 2638 5.0 used for national and 2717 45.0 provincial roads
OECF 314 17.5 340 228.5 INP 10 70.0
EXIM-Bank 29.0 For cofinancing of ADB and IBRD projects
Kuweit 352 20.0
FRG 77.65.332 26.0
Australia 83.0
Other 26.0 UK, Canada and Austria
Total 763.0
d As of March 31, 1989.
Source: DGM, April 1989. Mission estimates. - 82 - Table 3.3
INDONESIA
HIGHWAY SECTOR PROJECT
Three Year ExpenditurePlan for National and ProvincialRoads
Breakdown of Expendituresin Accordancewith Availabilityof Foreign Funds (Currentbillion rupiah)
Value of projects Value of projects for Total for which foreign which no foreignaid Activity expendicures aid is committed is yet committed la
Maintenance 1,049 308 741 Betterment 1,969 1,136 933 Bridge replacement Civil works 203 92 111 Materials 246 198 48 New construction 160 0 160 Administration 647 55 592
Total 4,274 1,789 2,485
Source of Funds Foreign 2,687 1,350 1,337 Local 1,587 439 1,148
/a Includes all new loans which have been announcedbut have not yet been finalized.
Source: DSM, April 1989. Mission estimates. - 83 - Table 4.1
INDONESIA HIGHWAYSECTOR PROJECT
Flrst List of Bank Financed Subprolect.
Betterment PeriodicMaintenance Brtd- Roolsc*mant Total Cost Province km (No) Rpmllcn km (No) Rp million m Rp m;Illion Rp miTIlion
1. Aceh 68.6 (1) 7,000 1e.6 (2k 8,630 776 6,200 16,830 2. North Sumetra 228.5 (2) 14,170 878.7 (1'.) 16,226 575 2,627 88,023 8. Weet Sumatra 100.0 (1) 6,828 88.2 (2) 6,605 960 6,850 18,281 4. Riau 112.1 (8) 14,402 -- - 410 2,900 17,802 5. Jambi 71.8 (2) 11,826 N/A (2) 5,s98 -- -- 17,212 6. Bongkulu 82.8 (2) 10,504 58.7 (2) 8,716 875 2,e26 16,845 7. South Sumatra 160.0 (1) 8,198 164.4 (8) 16,956 260 2,200 27,365 8. Lampung -- -- 108.8 (6) 8,815 150 1,200 10,016 9. West Java -- 184.6 (7) 18,452 985 6,910 24,862 10. Central Java -- 288.5 (8) 20,896 420 2,940 28,885 11. Jogyakarte -- -- 18.6 (5) 10,841 190 1,520 12,881 12. East Java -- 269.8 (28) 59,209 a86 8,286 62,494 13. Woet Kalimantan 65.0 (1) 8,258 81.9 (4) 8,019 900 7,880 21,682 14. Central Kaliuantan - - 84.8 (8) 5,810 - -- 5,810 1S. East Kalimantan - -- 69.2 (7) 15,896 245 2,205 17,601 16. South Kalimantan 81.6 (1) 5,260 80.8 (4) 8,080 - - 18,280 17. BSal - 44.2 (4) 10,799 -- -- 10,799 18. West Nus- Tenger -- 15.8 (5) 16,840 700 6,128 21,468 19. East Nus Tenger -- 70.5 (8) 6,784 428 8,971 10,756 20. North Sulawesi 54.5 (1) 4,875 156.2 (8) 15,874 1S0 1,087 21,186 21. Central Sulawesi -- -- 167.4 (6) 8,848 -- 8,848 22. South East Sulawesi 241.0 (8) 89,824 25.9 (4) 7,056 - - 46,880 28. South Sulawesi - - - -- 895 6,105 5,106 24. Maluku 19.4 (1) 8,688 -- -- 1,200 9,040 12,678 25. Irian Jays - - 12.4 (8) 6,997 - -- 6,997 26. East Timor - - 78.8 (8) 8,e8e 240 960 4,848 Total 1.208.8 118.400 2.88S.6 282.400 9.718 78.613 474.413 - 84 - Table 4.2
INDONESIA
HIGHWAYSECTOR PROJECT
Summary of Consultancy Services
Foreign Local Cost S of Agency name and assignment consultants consultants Total USS million total ------staff-months ------cost
For Technical Assistance: DGH (Dir. of Planning) for PPB 108 40 148 1.6 DGH (Dir. of Planning) for Eng. Dev. 108 135 243 1.6 DGH (Dir. of Planning) for Implementation Quality Improvement 152 140 292 2.7 DGH (Dir. of Urban Roads) for Highway Capacity Manual 56 96 152 0.9 DGH (Information Section) for MIS 12 74 86 0.5 DGH for Central Axle Load Survey Unit 30 144 174 0.9 IRE for Research, Trainlng and Support 111 87 198 1.6 IRE for Technical Standards Developmer* 123 108 231 1.6 Jasa Marga for Quality Control and Maintenance Management 95 50 145 1.4 MOC for Advisors on Road Usec Taxation 15 - 1S 0.2 MOC for Advisors on Vehicle tWeights, etc. 40 42 82 1.0 MOC for Advisors on Road Traffic Safety 33 30 63 0.7 MOC for Institutional Development of DGLC 56 59 115 1.2 Jasa Marga for Feasibility Studies 35 25 60 0.5
Subtotal TA 974 1.030 2.004 16.4 36
For Preparation and Imvlementation of Clivil Work (PP&I): DGH/DBMs (Dir. of Implementation) for Design and Supervision - 6,750 6,750 18.0 DGH/DBMs for Technical Support 405 999 1,404 7.2
Subtotal PP&I 405 7,749 8,154 25.2 55
For Training (T): DGH for DKILAT Training Program 70 100 170 1.4 MOC for Training of Road Transport Operators 65 55 120 1.2 ITB for Graduate Training (S2 Program) 79 100 179 1.5
Subtotal T 214 255 469 4.1 9
Total 1,593 9,034 10,627 45.7 100 - 85 - Table 4.3 Page 1 of 2
INDONESIA
HIGHWAY SECTOR PROJECT
List of Equipment (as agreed at negotiations)
Equipment Quantity Unit price Total price (US$) (US$)
For ImplementationQuality ImprovementProgram: Laboratory and field testing equipmentLa 3 sets 80,000.00 240,000.00
For Central Axle Load Survey Units Dynamic weighing scale /b 1 300,000.00 300,000.00 Spare parts for existing equipment - 510,000.00 510,000.00
Subtotal 810,000.00
For IREs Dynamic loading machine lb 1 365,000.00 365,000.00
Traffic and TransportEcuipment Portableweighbridge (PWB) 4 6,000.00 24,000.00 Aatomatic weighing scale (P1S) 2 9,500.00 19,000.00 Portable smoke pollution analyzer (PSPA) 1 6,750.00 6,750.00 Sound level meter (SLM) 4 1,000.00 4,000.00 Automated traffic counter and classified (ATCC) 2 8,000.00 16,000.00 Field traffic counter Retrieval equipment
MiscellaneousEquipment Portable drill magnetic base stand 1 2,500.00 2,500.00 Concrete test hammer 3 1,400.00 4,200.00 Core drill diamond bit 8 750.00 6,000.00 Electroscopetop-pan balance 1 2,200.00 2,200.00 AutomaticMarshall testing apparatus 1 1,600.00 1,600.00 Thin section holders 1 500.00 500.00 Specimenmounting 1 250.00 250.00 Grinding and lapping 1 3,000.00 3,000.00
Microviscometerand RTFO Hicroviscometer 1) 14,000.00 14,000.0 Rolling thin film oven 1} Lacroix deflectographspare parts 1 51,000.00 51,000.00
Subtotal 520,000.00 - 86 - Table 4.2 Page 2 of 2
Equipment Quantity Unit price Total price (US$) (US$)
For Jasa Margat Computing equipment for maintenancemanagement system Ic - - 17,000.00 Pavement monitoring survey/c 3,360 35,000.00 117,600.00 FWD pavement strength survey /c 1.120 15,000.00 16,800.00 Pavement coring and slab sampling for routine quality control checks /c 280 30.00 8,400.00 Inventory data collection for MKS /c 1,120 57.00 63,840.00 Other special quality control monitoring and technical audit equipment ,Roughnessmeter 1 3,000.00 3,000.00 Dipstick profilometer 1 15,000.00 15,000.00 ?roxler asphalt meter 1 25,000.00 25,000.00 Gyro compactor 1 30,000.00 30,000.00 Basic asphalt and concrete testaingequipment 1 35,000.00 35,000.00 Pendulum skid tester 1 5,000.00 5,000.00 Other equipment items 1 20,000.00 20,000.00
Subtotal 330,140.00
For DGLC: Vehicle testing and accident data collection recording and analyzing esuipment/La - 2,100,000.00
Total Cost 4,000,140.00
/a Detailed list to be provided and agreed when review by consultantsis complete. lb Needs further discussion on type of equipment required. /c Renting of equipment should be considered before procurement is initiated. - 87 - Table 4.4 11DONEIA
HIGHWAY SECTOR PROJECT
Summary of Costs by Component la
Approximate Cost Loan Financed 1989190-1990/91 z Components Local Foreign Total foreign
Road and BridRe Improvement and Maintenance Civil Works 205.2 256.9 462.1 56 Technical Support 4.7 2.5 7.2 35 Engineering and Supervision 11.7 6.3 18.0 35
Subtotal 221.6 265.7 487.3 55
Road Traffic Safety Civil Works 5.3 6.7 12.0 56 Equipment 0.1 2.0 2.1 95 Advisory Services 0.1 0.6 0.7 80
Subtotal 5.5 9.3 14.8 63
Technical Assistance Consultancy Services 3.1 12.6 15.7 80 Equipment for Quality Control and Research 0.1 1.0 1.1 95 Equipment for Weigh-in-Motion - 0.8 0.8 95
Subtotal 3.2 14.4 17.6 82
Training Consultancy Services 0.8 3.3 4.1 80 Overseas Program - 2.0 2.0 100
Subtotal 0.8 5.3 6.1 87
Total Base Cost 231.1 294.7 525.8 56
Price Contingencies 24.5 29.7 54.2 55
TOTAL 255.6 324.4 580.0 56
/a Excludes taxes and duties. - 88 - Table 4.5
INDONESIA
HIGHWAY SECTOR PROJECT
Sumnary of Costs by TyPe of Expenditure/a (USS million)
ApproximateCost Loan Financed 1989/90 - 91/92 Subprojects Local Foreign Total S foreign
Civil Works Road Rehabilitation/ Betterment 56.3 71.7 128.0 56 Periodic Maintenance 134.4 145.6 280.0 52 Bridge Replacement 19.8 46.3 66.1 70
Subtotal 210.5 263.6 474.1 56 Equipment Road Traffic Safety 0.1 2.0 2.1 95 Quality Control and Research 0.1 1.0 1.1 95 Weigh-in-Motion - 0.8 0.8 95
Subtotal 0.2 3.8 4.0 95 C'rnsultancyServices lb TechnicalAssistance 3.1 12.6 15.7 80 Road Traffic Safety 0.1 0.6 0.7 80 Preparationand Imple- mentation of Civil Works 16.4 8.8 25.2 35 Training 0.8 3.3 4.1 80
Subtotal 20.4 25.3 45.7 55
Overseas Training - 2.0 2.6 100
Total Base Cost 231.1 294.7 525.8 56
Price Contingencies 24.5 29.7 54.2 55
Total 255.6 324.4 580.0 56
/a Excludes taxes and duties. /b Table 4.2 summarizesall consultancyservices. - 89 - Table 4.6
INDONESIA
IBI-HWAY SECTOR PROJECT l Estimated Disbursement Schedule
Estimated cumulative Disbursement profile IBRD fiscal year disbursements of regional transport and semester US$ million z projects (Z)
1990 December 31, 1989 0 0 0 June 30, 1991 60.0 17 1
1991 December 31, 1990 100.0 29 5 June 30, 1991 150.0 43 13
1992 December 31, 1991 200.0 57 22 June 30, 1992 250.0 7t 32
1993 December 31, 1992 300.0 86 42 June 30, 1993 350.0 100 59
1994 December 31, 1993 76 June 30, 1994 85
1995 December 31, 1994 94 June 30, 1995 98
1996 December 31, 1995 100
Mission Estimate - 90 - Table 5.1
INDONESIA
HIGHWAY SECTOR PROJECT
SuumnarizedDescription of Standard Segments
A. Main Parametersof Definition
GeographicArea Roughness Traffic IRI (m/km) (AADT)
Sumatra 0-4 Above 10,000 Java-Bali 4-6 3,000 - 9,999 Kalimantan 6-8 1,000 - 2,999 Other Islands 8-12 500 - 999 above 12 200 - 499 Below 200
B. Total Number of Standard Segments
4 geographicx 5 categories x 6 categories= 120 standard segments areas of roughness of traffic
C. Detailed Data Input
Each of the 120 standard segments is describedby the followingcharac- teristics (each valued in general as the average for all actual segments falling in the category):
(i) environment: rainfall - altitude (ii) road geometry : rise/fall - curvat"re - carriageway width - superelevation - shoulder width - number of lanes (iii) traffic : average daily traffic for car - pickup/minibus- smallbus - large bus - light truck - medium truck - heavy truck (iv) surface : surfacetype - number of new layers and their thickness- number of old layers and their thickness (v) Base/subgrade s base type - base thickness - subgrade CBR - structuralNo (v) road condition: area of all cracks - area of wide cracks - ravelling - potholes - rut depth (mean and standard deviation) - roughness (vi) pavement historys preventive treatmentage - surfacingage - constructionage - area of previous all and wide cracks - 91 - Table 5.2 Page I of 2
INDONESIA
HIGHWAY SxCTOR PROJECT
Optimum Initial Treatments and IERR for each Standard Segment
Geographic Roughness Traffic (AADT) Area IRI (m/km) Above 3,000- 1,000- 500- 200- Below 10,000 9,999 2,999 999 499 200
Sumatra 0-4 C1 01 01 01 01 01 N/A N/A N/A N/A N/A N/A 4-6 22 22 22 01 01 01 216Z 50? 21? N/A N/A N/A 6-8 24 24 23 23 01 01 2852 85Z 65Z 19Z N/A N/A 8-12 No 24 24 24 22 01 segm. 179Z 681 33Z 20Z N/A >12 No 33 33 32 31 02 segm. 2872 1122 572 29Z N/A
Java-Bali 0-4 01 01 01 01 01 No N/A N/A N/A Nli. N/A segm. 4-6 22 22 22 01 01 No 141? 592 20Z N/A N/A segm. 6-8 24 24 23 22 22 No 196Z 80? 38? 17? ' 15? segm. 8-12 24 24 24 24 22 No 4822 182? 69? 28Z 16? segm. >12 No No 33 32 31 No segm. segm. 1112 472 24? segm.
Kdl1itantan 0-4 01 01 01 01 01 01 N/A N/A N/A N/A N/A N/A 4-6 No 22 01 01 01 01 segm. 27? N/A N/A N/A N/A 6-8 No No 23 22 01 01 segm. segm. 34Z 16? N/A N/A 8-12 No No 24 24 22 01 segm. segm. 60? 25? 16? N/A >12 No No 33 32 31 02 segm. segm. 97? 55? 23? N/A - 92 - Table 5.2 Page 2 of 2
Geographic Roughness Traffic (AADT) Area IRI (m/km) Above 3,000- 1,000- 500- 200- Below 10,000 9,C99 2,999 999 499 200
Other Islands 0-4 01 01 01 01 01 01 N/A N/A N/A N/A N/A N/A 4-6 No 22 22 01 01 01 segm. 41Z 15? N/A N/A N/A 6-8 No 24 23 22 01 01 segm. 662 652 19X N/A N/A 8-12 No 24 23 22 01 01 segm. 177X 622 27X N/A N/A >12 No No 33 32 31 01 segm. segm. 107% 57? 25Z N/A
Treatment Codes
01 :Routine maintenance 02 : Minimum service treatment (heavy routinemaintenance plus some emergencyworks) 11 :Single bituminous surface treatment 12 : Double bituminous surface treatment 21 : Hot Rolled Sheet (HRS - 3 cm asphalt concrete overlaywith high bitumen content) 22 HkS and asphalt treated base levelling (ATBL) 23 : HRS and 4 cm asphalt treatedbase (ATB) 24 :HRS and 4 cm ATB and ATBL 31 :Double bituminous surface treatment and 15 cm aggregate base 32 :HRS and 4 cm ATB and 15 cm aggregate base 33 : HRS and 4 cm ATB and ATBL and 15 cm aggregatebase
Note: (i) In each cell of the above four matrices, the top figure indicatqs the optimum initialtreatment and the bottom one the IERR. There may be no segment in the cell (i.e.,no road with the correspond- ing levels of ltraffic and roughness). The IERR is ;not calcu- lated for routinemaintenance. (ii) The IERR (incrementaleconomic rate of return) is the ERR of not postponingthe treatmentby one year. (iii) The 11, 12 and 21 treatmentsare currentlynever found optimum by the RMS. (iv) The timing of subsequent treatments - in general 01 and 21 - is also optimized for each standard segment.
Source: Consulting Services for Road ImprovementProject. Final Report, Volume 1. (Based on 1987 data). INDONESIA HIGHWAYSECTOR PROJECT ORGANIZATIONOF THE DIRECTORATEGENERAL OF HIGHWAYS(DGH)
ICE?TRALGOVERNMENT MHIST OFPIJBUC WORKS
1 (GIna Uwgaspef
Smtoyd"of Goa;Oh"w
rPuaarennelI | | p & || Flnaic Ohnata A emlelatrallan| P _agiaaCrntrel Administration LagalSectIon Mr onl SaS Sandln SecSoa Seace.
DIRECTOROF OIRECTOROF IN CENTRAREN E SRE OIRETNR DET OF PLANNINB EOUIPIIENT IMPLENENTATION| PLEMENTATION IIPLEMNTATION
RoadLedger Sarblt | R Roads Senea|a | RuralRods S ae Rural oada SecIh | uralRoad|
Plannnmff Enano Enne1gMRl
Rurl Reada Md 71saou Prdcta Rila II RaglaII Raglan11 Rala III RegIenRI Ragla9n111| EamRe7ion EnglOanatorla|a
SOURCEDOH, APRIL 1987
_ INDONESIA HIGHWAYSECTOR PROJECT ORGANIZATIONOF THE PROVINCIALPUBLIC WORKS AGENCY (DPUP) IN ACEH,RIAU, JAMBI, BENGKULU, LAMPUNG, WEST KALIMANTAN, CENTRALKAUMANTAN, NORTH SULAWESI, CENTRAL SULaWESI, SOUTHEAST SULAWESI, NUSA TENGGARA TIMUR, MALUKU & IRUN JAYA.
HEAD OF DPUP
|ADMINISTRATION |
PERONNLPERSONNEFINANCE A AFFAIRS' LEAL GNEAAFFAIRS
1l l I | I 1| | EQUIPMENT PLANNING | IRRIGATION ROADS BUILDINGS & ______] ______J SU PPLIES
IRRIGATION 1ROAD IRRIGATION - PROGRAMME - IRRIGATION CONSTRUCTIONC X REGIONAL - EQUIPMENT ______J______& SUPPLIES
ROADS RIVERS BRIDGE BUILDINGS ROADS PROGRAMME & CONSTRUCTION & - EQUIPMENT ____jAMME _ SWAMPS _ HOUSING & SUPPLIES
BUILDINGS OPERATIONS ROAD 1 SANITATION LI PROGRAMMEJ MAINTENANCE MAINTENANCEWRKOP
IDESIGN DESIGN _ & ROAD INVENTORY
SOURCE:MINISTER OF HOMEAFFAIRS INSTRUCTION No.14 OF 1986 DATED 20 OCTOBER 1986. PN INDONESIA HIGHWAYSECTOR PROJECT ORGANIZATIONOF DIRECTORATEGENERAL OF REGIONALDEVELOPMENT (DGRD)
CentralGoenment Mlnisterof HomeAffairs
Secretary Inspector General General
I . II f_ DirectorGeneral DlrectorGeneral DirectorGeneral DireetoGeneral DiectorGeneral ofGeneral Aduminisuraton PolftScalAflairs of Lands atVilage Developmenl RegionalDevelepment andRegional Autonomy (PUOD)
DevelopmentCullural ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ oiltw enra RegionalDevelopment RegionalDevelopment UrbanDevelopment & Develpment
0 Seoretarate|| Regihnal | 0 &cretarlate | ttr o
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