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World Bank Document OFFICIAL ZTHE WORLD BAN4DOCUMENTS I*ty MRPD WORLD BANK GROUP RODRIGO A CHAVES Country Director Indonesia Public Disclosure Authorized Letter No. CD-053/WB/JUMFP/III/2017 March 27, 2017 Mr. Robert Pakpahan Director General of Budget Financing and Risk Management, Ministry of Finance Gedung Frans Seda Jalan DR. Wahidin Raya No. 1 Jakarta 10710, Indonesia Dear Mr. Pakpahan: Public Disclosure Authorized Re: Jakarta Urgent Flood Mitigation Project (Jakarta Emergency Dredging Initiative) - Loan No. 8121-ID; Amendment No. 2 I refer to the loan agreement ("Loan Agreement"), dated February 17, 2012, as amended on February 4, 2016, between the Republic of Indonesia (the "Borrower") and the International Bank for Reconstruction and Development (the "Bank") for the Jakarta Urgent Flood Mitigation Project (Jakarta Emergency Dredging Initiative) (the "Project"). I refer also to the Borrower's letter dated February 9, 2017, requesting the Bank to: (a) amend the Loan Agreement to reflect changes in the Project description and implementation arrangements; and (b) extend the Closing Date of the Loan. Public Disclosure Authorized Amendments to the Loan A2reement The Bank is pleased to inform you that, after due consideration, it has agreed to the amendments set forth below. 1. The description of activities in Schedule I is amended as follows: "The Project consists of the following parts: Part 1. Dredging, rehabilitation and flow capacity improvement of selected key floodways, canals and retention basins (a) Dredging and rehabilitation of the Project sites consisting of eleven (11) floodways, Public Disclosure Authorized with a total length of approximately 67.5 kilometers, and four (4) retention basins, with a total area of approximately 65.1 hectares, which have been identified as priority sections of the Jakarta flood management system in need of urgent rehabilitation and improvement in flow capacities; and transportation and disposal of materials dredged from the Project Sites in Disposal Sites. 1818 H Street NW * Washington. IX' 20433 USA 2 of 20 Loan No. 8121-ID (b) Rehabilitation and/or construction of approximately 42.2 kilometers of embankments within the Project Sites and replacement or repair of mechanical equipment as necessary. (c) Construction of a drainage pumping station of approximately forty (40) cubic meters per second capacity within the DGWR Project Sites. Part 2. Technical assistance for project management, social safeguards and capacity building (a) Supporting contracts management, engineering design reviews, construction supervision and technical assistance for implementation of the Project, including the Resettlement Policy Framework, Resettlement Plans and the Grievance Redress System. (b) Improving institutional coordination for operation and maintenance of Jakarta's flood management system, as well as establishing a Flood Management Information System. (c) Implementation of Resettlement Plans. (d) Establishment and operation of the Grievance Redress System. (e) Carrying out technical studies and analytical assessments to review the master plan on flood management in Cisadane - Jakarta - Bekasi area." 2. Paragraph I of Section I.A of Schedule 2 is amended as follows: "Loan Proceeds to be allocated to Ministry of Public Works. The Borrower shall allocate on a timely basis in accordance with the Borrower's budget process the portion of the proceeds of the Loan allocated from time to time in Categories 1(a), 1(b), 2, 3 and 4 in the table in paragraph 2 of Section IV. A of this Schedule 2 required for the MPW Parts of the Project to the Ministry of Public Works." 3. Paragraph 2(a)(i) of Section I.B of Schedule 2 is amended as follows: "The Central Project Management Unit shall comprise representatives of DGWR, DGHS, RDA, Ministry of Public Works Office of Planning and International Cooperation, DKI and BAPPENAS and shall be supported by a secretariat comprised of staff of DGWR, all with mandate, composition, staff positions and terms of reference acceptable to the Bank and the Borrower. The Borrower shall ensure that the Central Project Management Unit is provided in a timely manner with resources adequate to accomplish its objectives." 4. Paragraph 2(b)(i) of Section I.B of Schedule 2 is amended as follows: "The Central Project Implementation Unit shall comprise at least one (1) staff member of DGWR, DGHS, RDA and DKI and shall be supported by a secretariat comprised of staff of DGWR, all with mandate, composition, staff positions and terms of reference acceptable to the Bank and the Borrower. The Borrower shall ensure that the Central Project Implementation Unit is provided in a timely manner with resources adequate to accomplish its objectives." 1818 H Street NW - Washington. IX 20433 USA 3 of 20 Loan No. 8121-ID 5. Paragraph 3 of Section I.B of Schedule 2 is amended as follows: "Project Implementation Units. The Borrower shall maintain, until completion of the Project, the Project Implementation Units established in each of DGWR, DGHS, and RDA, and shall ensure that DKI shall maintain the Project Implementation Unit established in DKI. (a) Each Project Implementation Unit shall have a mandate, composition, staff positions and terms of reference acceptable to the Bank and the Borrower, acting through the Central Project Implementation Unit, and shall be made operational and provided in a timely manner with resources adequate to accomplish its objectives. (b) The Project Implementation Unit of DGWR shall be in the Regional Office of Ciliwung-Cisadane River Basin and shall be responsible for implementation of the Project at the DGWR Project Sites, including, without limitation: (i) employment and management of the Works Contractors for the DGWR Project Sites; (ii) dredging and rehabilitation of the selected floodways, canals and retention basins; (iii) implementation of the Environmental Safeguards Instruments applicable to the DGWR Project Sites; and (iv) compliance with the Resettlement Policy Framework and any Resettlement Plan applicable to the DGWR Project Sites." (c) The Project Implementation Unit of DGHS shall be in the Directorate of Environmental Sanitation Development and shall be responsible for implementation of the Project at the DGHS Project Sites, including, without limitation: (i) employment and management of the works Contractors for the DGHS Project Sites; (ii) dredging and rehabilitation of the selected floodways and canals; (iii) implementation of the Environmental Safeguards Instruments applicable to the DGHS Project Sites; and (iv) compliance with the Resettlement Policy Framework and any Resettlement Plan applicable to the DGHS Project Sites. (d) The Project Implementation Unit of RDA shall be in the Research Center for Water Resources and shall be responsible for the implementation of Part 2(e) of the Project, including, without limitation, the employment and management of the consultant(s) to carry out technical studies and analytical assessments to review the master plan on flood management in Cisadane-Jakarta-Bekasi area. (e) The Project Implementation Unit of DKI shall be in the DPU-DKI and shall be responsible for implementation of the Project at the DKI Project Sites, including, without limitation: (i) employment and management of the Works Contractors for the DKI Project Sites; (ii) dredging and rehabilitation of the selected floodways and canals; (iii) implementation of the Environmental Safeguards Instruments applicable to the DKI Project Sites; and (iv) compliance with the Resettlement Policy Framework and any Resettlement Plan applicable to the DKI Project Sites. (f) The Project Implementation Unit of DKI shall also be responsible for land acquisition and resettlement in DKI, and shall also establish, prior to the finalization and submission to the Bank of the first Resettlement Plan, and thereafter maintain until completion of the Project, the Environmental and Social Working Group and the Land 1818 H Street NW - Washington. DC 20433 USA 4 of 20 Loan No. 8121-ID Acquisition Committee, each established with a mandate, composition, staff positions and terms of reference acceptable to the Bank and the Borrower, through the Central Project Implementation Unit, and each made operational and provided in a timely manner with resources adequate to accomplish its objectives. (g) Each Project Implementation Unit shall take all action on its part to ensure cooperation with the other Project Implementation Units necessary to accomplish the objective of the Project." 6. Paragraph 14 of Section I.C of Schedule 2 is hereby deleted in its entirety. 7. Paragraph 3 of Section I.D of Schedule 2 is hereby replaced in its entirety with the following: "3. The Borrower shall ensure that the terms of reference for any consultancies related to studies, technical assistance and/or capacity building under this Agreement shall be satisfactory to the Bank and, to that end, such terms of reference shall, inter alia, duly incorporate the requirements of the World Bank's Safeguards Policies then in force, as applied to the advice conveyed through such studies, technical assistance and/or capacity building activities. 8. The table in paragraph 2 of Section IV.A is hereby replaced in its entirety with the following table: Category Amount of the Percentage of Loan Expenditures to be Allocated financed (expressed in USD) (inclusive of Taxes) (1) Works under Part 1 of the Project (1)(a) Works under Part I of the Project for 71,100,000 80% the DGWR Project Sites (1)(b) Works under Part 1 of the Project for 17,800,000 80% the DGHS Project Sites (1)(c) Works under Part 1 of the Project for 40,640,000 67% the DKI Project Sites (2) Consultants Services, Goods and Non- 6,800,000 100% Consulting Services under Parts 2(a) and 2(d) of the Project (3) Incremental Operating Costs under 300,000 100% Part 2(a) of the Project (4) Consultants Services, Goods and 3,000,000 100% Non-Consulting Services under Parts 2(e) of the Project TOTAL AMOUNT 139,640,000 1818 H Street NW - Washington. DC 20433 USA 5 of 20 Loan No. 8121-ID 9.
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