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Preparatory Survey for Bandung Intra Urban Toll Road Project

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Preparatory Survey for Bandung Intra Urban Toll Road Project No. JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) REPUBLIC OF INDONESIA MINISTRY OF PUBLIC WORKS DIRECTORATE GENERAL OF HIGHWAYS PREPARATORY SURVEY FOR BANDUNG INTRA URBAN TOLL ROAD PROJECT FINAL REPORT JULY 2009 NIPPON KOEI CO., LTD. A1P 09-016 CURRENCY EXCHANGE RATE Following currency exchange rates were adopted in this report unless otherwise stipulated. (1) Indonesia Rupiah vs. US Dollar Selling rate of Bank Indonesia on May, 15 2009 USD 1= IDR 11,380 (2) Indonesia Rupiah vs. Japanese Yen Selling rate of Bank Indonesia on May, 15 2009 JPY 1 = IDR 115.32 Final Report Preparatory Survey for Bandung Intra Urban Toll Road Project July 2009 SYNOPSIS 1. Country Republic of Indonesia 2. Name of Study Preparatory Survey of Bandung Intra Urban Toll Road Project 3. Counterpart Agency Directorate General of Highways (Bina Marga), Ministry of Public Works 4. Objectives of Study 1. Review the existing Feasibility Study 2. Prepare the project implementation program 3. Recommend the traffic management policy in the vicinity of project road 5. Study Area Bandung Metropolitan Area, primarily Bandung City 6. Scope of Study 1) Confirmation of project necessity and backgrounds, including review of traffic demand forecast 2) Identification of project scope ―― components, cost, schedule, O&M plan including traffic management policy near the project road, and implementation institutions 3) Review of environmental and social considerations 4) Recommendation of cooperation with other organizations 5) Assessment of project effects 7. Major Findings The project necessity was ascertained by confirming the conformity with national and regional master plans and reviewing the traffic demand on the project road, based on the actual traffic survey and the future demand forecast model. Through the review of the Preliminary Design in the F/S, some design changes are proposed, ―― i.e. modification of the ramp profile at the Ujunberung Interchange, modification of frontage road alignment at seven locations near the end points of the viaduct, relocation of a toll gate, and relocation of two ramps to comply with the domestic standard. Thus, the project road will have the quantities of major components as the total length of 27.257 km, total number of ramps of 16, total number of interchanges of 2, and total number of toll gates of 11. Phase 1 of the Project will be implemented as a Japanese ODA loan project for FY 2009, presumably signing the L/A in March, 2010, spending 33 months for pre-construction procedures in parallel with the land acquisition and resettlement, and starting the construction in January, 2013 and completing it by the end of 2014. Implementation program for Phase 2 has not been finalized yet, but if another loan is signed in 2010 the construction for Phase 2 is supposed to be completed by mid-2017 at earliest. An O&M company will be procured for O&M of the finally completed network after Phase 2 with one O&M station and 11 toll gates. But, for O&M of the partial network after Phase 1 only, the Survey Team recommends that Jasa Marga which operates the Jakarta-Bandung Toll Road and Padalarang-Cileunyi Toll Road be in charge of it temporarily. The project toll road is planned to have such a feature as flat toll by vehicle class, entry toll collection and the levy-every-user system. Traffic management measures along the project road includes intersection widening and improvement, access road improvement, signalization, and traffic operation near the ramp, especially that on the Paspati Bridge. The Survey Team found out that the total required number of properties to be resettled and the total required area of land to be acquired are 2,595 and 66.8 ha, respectively, with the total cost for land acquisition and compensation of Rp 1,317 Billion. From the review of the approved EIA and results of several supplementary PCM in which arguments were made over LARF, some environmental and socio environmental issues have been identified. Those will be incorporated in LARAP to be produced subsequently, together with the proper mitigation measures. The economic evaluation showed that the Project as a whole is economically viable with an EIRR of 20.5%, while financially it turned out to be critically feasible at a reasonable flat toll rate. As a result of financial plan and examination of PPP options for Phase 2, the breakeven tariff for the reasonable private sector contribution turned out to be too high, leading to the recommendation that PPP options are not applicable even for Phase 2. It is noted that cooperation with other organizations and programs are quite important, particularly with the ongoing Technical Cooperation Program offered to BPJT by JICA. 8. Conclusions and Recommendations 1) Construction of BIUTR is viable from macroeconomic perspective, contributing to mitigation of traffic congestion and development of regional economy. 2) Phase 1, in length of 9.5km with a project cost of IDR 1,816 Billion (in 2009 price), is expected to be implemented by the finance of a Japanese ODA loan. 3) Pursuing a PPP option for Phase 2 is not appropriate, and the traditional funding system (GOI funding with ODA loans) is recommended. 4) The success of the Project completely depends on whether smooth and timely land acquisition and resettlement will be done or not. LARAP is critical to safeguard the rights of PAPs. 5) The LARAP framework must be established by the time of the Loan Appraisal by JICA. As well, the EIA Final Report Preparatory Survey for Bandung Intra Urban Toll Road Project July 2009 reports are to be opened to the public 120 days prior to the Loan Agreement. 6) The construction for Phase 1 will start in January, 2013, and that for Phase 2 is supposed to be completed in 2020. Final Report Preparatory Survey for Bandung Intra Urban Toll Road Project July 2009 EXECUTIVE SUMMARY 1. PROJECT BACKGROUND AND NECESSITY Presently, the regional spatial plans at the national level (RTRWN No. 26, 2008) and the National Long-term Development Plan (BPJP 2005-2025) are in effect, as well as the Bandung City RTRW No. 3, 2006 intended for said city. As for the National Mid-term Development Plan (PPJM) set-up every five years under BPJP, PPJM-I (2005-2009) is currently underway. The Ministry of Public Works (MOPW) has a five-year program (Renstra 2005-2009) involving the vision, mission, and overall and sectoral targets for road development, along with the above PPJM-I. In 2006, it also formulated the National Toll Road Development Plan. Prior to said plans, the City conducted the Bandung Intra-City Toll Road Network Plan (BITL) in 1996. The Project road is listed in these national and local master plans as well as in the above Bandung City RTRW No. 3, 2006. The recent remarkable increase in population and progress of urbanization in Bandung City (the City) caused rapid increase in road traffic demands, causing heavy traffic congestions on many sections of the road network in the city, particularly during week-ends in the vicinity of the east-west arterials. By connecting the Pasupati Bridge and Viaduct to the Jakarta-Bandung Toll Road and further extending the elevated road in the eastern direction, traffic congestion mitigation and improvement in the accessibility in said direction can be expected. To further attract more private investments to the Gedebage Development, improved accessibility to the development area is realized to be an effective means. This shall be facilitated by constructing high-grade highways connected to both the Padalarang-Cileunyi Toll Road and the central area of Bandung City.. Hence, the construction of the Bandung Intra Urban Toll Road (hereinafter referred to as “BIUT” Road) is justified considering the above objective. 2. PROJECT OUTLINES 2.1 PROJECT OBJECTIVES In the Bandung City Long-term Spatial Plan 2004, the east-west toll road connected to the Pasteur Toll Gate of the Jakarta-Bandung Toll Road is given the highest priority. In 2006, Bina Marga conducted the Feasibility Study on the Bandung Intra City Toll Road Project (F/S) and its corresponding Environmental Impact Assessment (EIA). The provincial government in West Java approved its AMDAL (EIS). In the meantime, the Government of Indonesia (GOI) decided to request for a Japanese ODA Loan for a part of the project cost and started negotiations with the former JBIC in 2008. Meanwhile, BAPPENAS listed the Project in the Blue Book with a loan amount of US$ 150 million. Consequently, the defined objective of the Project is to construct a toll road in the Bandung Metropolitan Area, with full control of access to a total length of about 28 km. This shall be initiated through combined financing from the Japanese ODA loan, and other possible sources, including private investors. 2.2 PROJECT OUTLINES The Bandung Intra Urban Toll Road with a total length of 27.257 km is planned to consist of two segments, as follows: • The east-west direction from Pasteur to Cileunyi with a length of 20.6 km, and with 2 x 2 separated 4 lanes of 36 m width. Almost all sections in this segment are elevated. • The north-south direction from Ujung Berung to Gedebage with a length of 6.7 km and with 2 x 2 separated 4 lanes of 40 m width. Sections in this segment are mostly at grade, S-1 Final Report Preparatory Survey for Bandung Intra Urban Toll Road Project July 2009 but with full access control. Based on survey conducted after reviewing and partially revising the Project road design and the phasing of its implementation, the costs for Phase 1 and Phase 2 of the Project were re-estimated to be Rp 2,544 Billion (US$ 224 Million) and Rp 8,920 Billion (US$ 784 Million), respectively.
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