Metropolitan Bogor, Tangerang and Bekasi Urban Development (Sector) Project (Loan 1511-INO) in Indonesia
Total Page:16
File Type:pdf, Size:1020Kb
Project Completion Report PCR: INO 29446 Metropolitan Bogor, Tangerang and Bekasi Urban Development (Sector) Project (Loan 1511-INO) in Indonesia October 2005 CURRENCY EQUIVALENTS Currency Unit – rupiah (Rp) At Appraisal At Project Completion (31 October 1996) (30 September 2003) Rp1.00 = $.00043 $.00011 $1.00 = Rp2.327 Rp90001 ABBREVIATIONS ADB − Asian Development Bank APBD − Anggaran Pembangunan dan Belanjar Daerah (local development and expenditure budget) BAPEDAL − Badan Pengendalian Dampak Lingkungan (local government environmental agency) BAPPENAS − Badan Perencanaan Pembangunan Nasional (national development planning agency) BCR − benefit cost ratio BME − benefit monitoring evaluation BOTABEK − Bogor, Tangerang and Bekasi CBUIM − Capacity Building for Urban Infrastructure Management DED − detailed engineering design DGHS − Directorate General of Human Settlements DGURD − Directorate General of Urban and Rural Development DPRD − Dewan Perwakilan Rakyat Daerah (local parliaments) EA − executing agency EIA − environmental impact assessment EIRR − economic internal rate of return EOCC − economic opportunity cost of capital FIRR − financial internal rate of return IA − implementing agency IEE − initial environmental examination IPLT − sludge processing plant FDS − final disposal sites FRAP − financial recovery action plan IUIDP − integrated urban infrastructure development program KIP − kampung improvement program LIDAP − local institutional development action plan MCK − mandi-cuci-kakus (bathing-washing-toilet) MIIP − market infrastructure improvement program MOHA − Ministry of Home Affairs MOHARA − Ministry of Home and Regional Affairs MPW − Ministry of Public Works MSRD − Ministry of Settlements and Regional Development 1 During project implementation, particularly during the peak of the fiscal crisis in 1997–98, the exchange rate fluctuated substantially. In 1999 it rose to Rp16,000 for $1.00; in 1999 it came back to Rp10,000, and since 2002 it is below Rp10,000. O&M − operation and maintenance NPV − net present value PCR − project completion report PDAM − Perusahaan Daerah Air Minum (local government water supply enterprise) PIU − project implementation unit PMU − project management unit PSP − private sector participation RIAP − revenue improvement action plan SLA − subsidiary loan agreement SPAR − subproject appraisal report SWM − solid waste management TPA − Tempat Pembuangan Akhir (final solid waste disposal site) UDP − urban development project UFW − unaccounted for water GLOSSARY Dinas – service departments within provincial or district (kota and kabupaten) administrations Kabupaten – regency or district; administrative subdivision of a province, predominantly rural Kampung – rural or urban villages; poor human settlement or “informal settlement” (in the context of the Project) Kecamatan – subdistrict Kota – municipality or urban district; administrative subdivision of a province, predominantly urban (city) Kotamadya – municipality NOTES (i) The fiscal year (FY) of the Government ends on 31 December. (ii) In this report, "$" refers to US dollars. CONTENTS Page BASIC DATA ii MAP vii I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2 A. Relevance of Design and Formulation 2 B. Project Outputs 2 C. Project Costs 4 D. Disbursements 5 E. Project Schedule 5 F. Implementation Arrangements 5 G. Conditions and Covenants 6 H. Related Technical Assistance 6 I. Consultant Recruitment and Procurement 6 J. Performance of Consultants, Contractors, and Suppliers 6 K. Performance of the Borrower and the Executing Agency 7 L. Performance of the Asian Development Bank 8 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Efficacy in Achievement of Purpose 9 C. Efficiency in Achievement of Outputs and Purpose 11 D. Preliminary Assessment of Sustainability 13 E. Environmental, Sociocultural, and Other Impacts 13 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 15 A. Overall Assessment 15 B. Lessons 15 C. Recommendations 16 APPENDIXES 1. Project Framework 17 2. Status of Completion of Project Components 21 3. Allocation of Infrastructure Project Investments by Local Government and Subsector 28 4. Project Cost By Component 30 5. Implementation Schedule 31 6. Organizational Arrangement for Project Implementation 33 7. Status of Compliance with Loan Covenants 34 8. Project Benefits and Impacts 44 9. Financial Performance of Local Governments 46 10. Financial and Economic Analysis 47 ii BASIC DATA A. Loan Identification 1. Country Indonesia 2. Loan Number 1511-INO 3. Project Title Metropolitan Bogor, Tangerang and Bekasi Urban Development (Sector) 4. Borrower Republic of Indonesia 5. Executing Agency Directorate General of Urban and Rural Development (DGURD) in the Ministry of Settlements and Regional Development (MSRD)1 6. Amount of Loan $80 million 7. Project Completion Report Number PCR:INO 890 B. Loan Data 1. Appraisal – Date Started 19 August 1996 – Date Completed 20 September 1996 2. Loan Negotiations – Date Started 18 November 1996 – Date Completed 20 November 1996 3. Date of Board Approval 19 December 1996 4. Date of Loan Agreement 10 January 1997 5. Date of Loan Effectiveness – In Loan Agreement 10 April 1997 – Actual 13 March 1997 – Number of Extensions 1 6. Closing Date – In Loan Agreement 30 September 2002 – Actual 4 March 2004 – Number of Extensions 1 7. Terms of Loan – Interest Rate Variable – Maturity (number of years) 25 – Grace Period (number of years) 5 8. Terms of Relending – Interest Rate 11.5%2 per annum – Maturity (number of years) 20 (maximum) – Grace Period (number of years) 5 (maximum) – Second-Step Borrower local governments and water supply enterprises 9. Loan Cancellations a. 16 July 1998 $17.0 million b. 24 September 1999 $6.0 million c. 6 October 2000 $4.9 million d. 11 November 2003 $8.0 million e. 4 March 2004 $4.4 million 1 Formerly Directorate General of Human Settlements (Ministry of Public Works). 2 Includes commitment charge of 0.75% per annum. iii 10. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 13 May 1997 4 March 2004 81 months Effective Date Closing Date Time Interval 13 March 1997 Original: 30 September 2002 80 months (from actual closing date) Actual: 30 September 2003 68 months (from original closing date) b. Amount ($ million) Category Last Net or Original Revised Amount Amount Amount Undisbursed Subloan Allocation Allocation Canceled Available Disbursed Balance Civil Works 33.30 17.92 15.38 17.92 17.92 0.0 Equipment and 17.90 8.37 9.53 8.37 8.37 0.0 Materials IDC Urban Dev. 14.40 6.11 8.29 6.11 6.11 0.0 (Sector) Project Consulting 14.40 7.29 7.11 7.29 7.29 0.0 Services Total 80.00 39.69 40.31 39.69 39.69 0.0 IDC = interest during construction. 11. Local Costs (Financed) - Amount ($ million) 17.02 - Percent of Local Costs 51.57 - Percent of Total Cost 42.88 C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 65.0 22.98 Local Currency Cost 163.0 51.59 Total 228.0 74.57 iv 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Foreign Local Total Foreign Local Total Exchange Currency Exchange Currency Implementation Costs Borrower Financed Central Government 0.00 13.00 13.00 0.00 6.15 6.15 Provincial & Local Governments 0.00 70.00 70.00 0.00 21.92 21.92 PDAMs 0.00 8.00 8.00 0.00 5.45 5.45 Private Sector and Communities 18.00 39.00 57.00 0.00 1.36 1.36 Subtotal 18.00 130.00 148.00 0.00 34.88 34.88 ADB Financed 47.00 33.00 80.00 22.98 16.71 39.69 Total 65.00 163.00 228.00 22.98 51.59 74.57 IDC Costs Borrower Financed 0.00 0.0 0.00 0.00 0.00 0.00 ADB Financed 14.40 0.0 14.40 6.11 0.00 6.11 Total 14.40 0.0 14.40 6.11 0.00 6.11 ADB = Asian Development Bank, IDC = interest during construction, PDAMs = local government water supply enterprises. 3. Cost Breakdown by Project Component – Project Loan ($ million) Component Appraisal Estimated Actual Foreign Local Total Foreign Local Total Exchange Currency Exchange Currency A. Institutional Development 1. Consulting Services 1.80 5.00 6.80 1.64 5.65 7.29 2. Incremental Administrationa 0.00 7.50 7.50 0.00 0.00 0.00 Subtotal 1.80 12.50 14.30 1.64 5.65 7.29 B. Subprojectsb 1. Water Supply 22.00 49.90 71.90 1.23 9.18 10.41 2. Roads and Bridges 18.20 53.60 71.80 4.41 21.90 26.31 3. Drainage 2.50 11.30 13.80 0.76 3.98 4.74 4. Solid Waste 4.10 9.10 13.20 0.40 4.86 5.26 5. Sanitation 1.10 3.00 4.10 0.07 1.22 1.29 6. KIP/MIIP 0.20 5.30 5.50 0.07 0.89 0.96 7. Bus Terminals 0.70 3.30 4.00 0.52 3.31 3.83 Subtotal 48.80 135.50 184.30 7.46 45.34 52.80 C. Equipment and Materials 0.00 0.00 0.00 7.77 0.60 8.37 D. Incremental O&Mc 0.00 15.00 15.00 0.00 0.00 0.00 E. Interest During Construction 14.40 0.00 14.40 6.11 0.00 6.11 Total 65.00 163.00 228.00 22.98 51.59 74.57 KIP = kampung improvement program; MIIP = market infrastructure improvement program; O&M = operation & maintenance. a At appraisal, includes staff honorarium, per diem, travel, office equipment, and related expenses. b At appraisal, includes land, civil works, equipment and materials, and detailed design. c On project facilities for one year after construction. d At appraisal, includes duties and taxes of about $20 million. v 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants: 1. Preparation of Subproject Appraisal Report January 1996 23 October 1997 2. Detailed Engineering Design and Construction October 1996 16 January 1999 Supervision, Kabupaten Bogor 3.