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The World Bank Public Disclosure Authorized Document of The World Bank Public Disclosure Authorized Report No:ICR0000000103 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-46430) Public Disclosure Authorized ON A LOAN IN THE AMOUNT OF US$200.00 MILLION TO THE REPUBLIC OF INDONESIA FOR THE Public Disclosure Authorized EASTERN INDONESIA REGION TRANSPORT PROJECT December 19,2006 Transport Sector Unit Sustainable Development Department EAST ASIA AND PACIFIC REGION Public Disclosure Authorized CURRENCY EQUIVALENTS ( Exchange Rate Effective 07/01/2006 ) Currency Unit = ID Rupiah ID Rupiah 1.OO = US$0.0001 US$ 1.OO = ID Rupiah 9000 Fiscal Year January 1 - December 3 1 ABBREVIATIONS AND ACRONYMS AADT Average Annual Daily Traffic AMDAL Environmental Impact Assessment BAPEDALDA Provincial Environmental Agency BAPPEDA Provincial Development Planning Board BAPPENAS National Development Planning Agency CTC Core Team Consultant DGH Directorate General of Highways of MPW DGLT Directorate General of Land Transport DGRI Directorate General of Regional Infrastructure DSC Design and Supervision Consultants EIRTP 1 Eastern Indonesia Region Transport Project EIRTP 2 Second Eastern Indonesia Region Transport Project EMP Environmental Management Plan ERR Economic Rate of Return FY Fiscal Year GO1 Government of Indonesia IDR Indonesian Rupiah IIRMS Integrated Indonesian Road Management System Kabupaten Autonomous Level of Local Government KOta Autonomous Level of Local Government LARAP Land Acquisition and Resettlement Action Plan MOF Ministry of Finance MPW Ministry of Public Works MSRI Ministry of Settlements and Regional Infrastructure NPV Net Present Value PIU Project Implementation Unit PMU Project Management Unit RTC Regional Team Consultants TA Techcal Assistance Vice President: James W. Adarns Country Director: Andrew D. Steer Sector Manager: Jitendra N. Bajpai Project Team Leader: Sally L. Burningham Indonesia Eastern Indonesia Region Transport Project CONTENTS Page No. 1. Basic Information 2. Key Dates 3. Ratings Summary 4. Sector and Theme Codes 5. Bank Staff 6. Project Context, Development Objectives and Design 7. Key Factors Affecting Implementation and Outcomes 8. Assessment of Outcomes 9. Assessment of Risk to Development Outcome 10. Assessment of Bank and Borrower Performance 11. Lessons Learned 12. Comments on Issues Raised by BorrowerIImplementing AgenciesIPartners Annex 1. Results Framework Analysis Annex 2. Restructuring Annex 3. Project Costs and Financing Annex 4. Outputs by Component Annex 5. Economic and Financial Analysis Annex 6. Bank Lending and Implementation SupportlSupervision Processes Annex 7. Detailed Ratings of Bank and Borrower Performance Annex 8. Beneficiary Survey Result Annex 9. Stakeholder Workshop Report and Results Annex 10. Summary of Borrower's ICR and/or Comments on Draft ICR Annex 11. Comments of Cofinanciers and Other Partners/Stakeholders Annex 12. List of Supporting Documents MAPS 1. IBRD 31368 Overall Program 2. IBRD 3 1369 Kalimantan Barat 3. IBRD 3 1370 Kalimantan Tengah 4. IBRD 31371 Kalirnantan Timur 5. IBRD 3 1372 Kalimantan Selatan 6. IBRD 31 373 Bali 7. IBRD 31 374 Nusa Tenggara Barat 8. IBRD 31375 Nusa Tenggara Timur 9. IBRD 31376 Sulawesi UtaraIGorontalo 10. IBRD31377 Sulawesi Tengah 11. IBRD31378 Sulawesi Barat and Sulawesi Selatan 12. IBRD31379 Sulawesi Tenggara 13. IBRD 31380 Maluku 14. IBRD31381 Maluku Utara 15. IBRD31382 han Jaya Barat and Papua (Irian Jaya) 16. IBRD35139 Papua Poverty Map 1. Basic Information Eastern Indonesia Country: Indonesia Project Name: Region Transport Project Project ID: PO40578 LICITF Number(s): IBRD-46430 ICR Date: 1211 912006 ICR Type: Core ICR REPUBLIC OF Borrower: Lending Instrument: SIL INDONESIA Original Total USD 200.OM Disbursed Amount: USD 194.72M Comrni tment : Environmental Category: B Implementing Agencies Ministry of Public Works Cofinanciers and Other External Partners 2. Key Dates Revised 1 Actual Process Original Date Process Date Date(s) Concept Review: 0911 312000 Effectiveness: 0312712002 03/27/2002 Appraisal: 0611 912001 Restructuring(s'): Approval: 1211 112001 Mid-term Review: Closing: 0613012006 06/30/2006 3. Ratings Summary 3.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance: Satisfactory 3.2 Quality at Entry and Implementation Performance Indicators Implementation Performance Indicators QAG Assessments (if any) Rating: Potential Problem Project at any No Quality at Entry (QEA): Satisfactory time (YesINo): Problem Project at any time No Quality of Supervision (QSA): None (YesINo): DO rating before Moderately Closing/Inactive status: Satisfactory 4. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 5 5 Roads and highways 95 95 Original Priority Actual Priority Theme Code (PrimaryISecondary) Decentralization Secondary Secondary Infrastructure services for private sector development Primary Primary 5. Bank Staff Positio~~s At ICR At Approval Jemal-ud-din Vice President: James W. Adams Kassum Country Director: Andrew D. Steer Mark Baird Sector Manager: Jitendra N. Bajpai Jitendra N. Bajpai Sally L. Hatim M. Hajj Project Team Leader: Burningham Sally L. ICR Team Leader: Burningham Sally L. ICR Primary Author: Burningham 6. Project Context, Development Objectives and Design (this section is descriptive, taken from other documents, e.g., PAD/ISR, not evaluative) 6.1 Context at Appraisal (brief summary of country macroeconomic and structural/sector background, rationale for Bank assistance) The Project was appraised in June 2001 during a time in which Indonesia, after some 30 years of steady economic growth, was emergng from the severe economic and financial crisis of 1997-1998 and experiencing transition to democracy and an ambitious program of decentralization. The Project was aimed at Eastern Indonesia region, considered as all of Indonesia except Java and Sumatra and spreading over a vast geographic area including the three largest islands of Kalimantan, Sulawesi, and Papua, together with the smaller islands of the Malukus, Nusatenggaras, and Bali. Eastern Indonesia is economically diverse, with many areas being rich in natural resources, minerals, forests, oil and gas, fisheries, and productive agricultural lands, and many other areas that include the poorest, least populated, and least developed parts of the country. As a result of the economic crisis in 1997-1998 it was estimated that the regional economy of Eastern Indonesia contracted by around 8 percent. The impacts of the crisis were quite different within Eastern Indonesia. Kalimantan was the worst affected area, with the economy shnnking by close to 19 percent due to other compounding factors like forest fires and drought. By contrast, Sulawesi was little affected as the contractions in some sectors were offset by higher prices for exports from the agricultural and fisheries sectors. In the late 1990s, the Government of Indonesia (GOI), by enacting Laws 22 and 25, decided to provide for increased regional autonomy and decentralized fiscal authority, including the decentralization of planning and programming for transport sector activities to the kabupaten and provincial levels. Therefore, the challenge of decentralizing administration and core management functions, including financing, planning, programming, and implementation to 15 provinces and about 130 districts was enormous, especially given the generally weak institutional capacity and changing structures at local levels. At appraisal in June 2001, the overarching goal of the World Bank Group in Indonesia was to support the government's efforts to reduce poverty and vulnerability in a more open and decentralized environment. The Country Assistance Strategy dated January 4, 2001 (Report No. 21580-IND) focused on three broad priority objectives: sustaining economic recovery and promoting broad-based growth; building national institutions for accountable government; and delivering better public services for the poor. Originally one project, Eastern Indonesia Region Transport Project (EIRTP) was split in two. This Project EIRTP 1 (Ln 4643, approved December 1l,2001), focused on national and strategic roads and the second complementary, EIRTP 2 (Ln 4744, approved June 22, 2004), included provincial and kabupaten roads. The Project was designed to contribute to achieving three Country Assistance Strategy objectives as follows: 1. Sustaining Economic Recovery and Promoting Broad-Based Growth. EIRTP 1 included the poorest and least populated parts of Indonesia and intended to accelerate their development by improving the condition and all-weather usability of existing national and other strategic road links; 2. Building National Institutions for Accountable Government in the Road Sector. EIRTP 1 was to support the effective and sustainable decentralization of responsibility and resources to local institutions in 15 provinces. These arrangements were designed to provide more efficient and transparent use of public funds for roads through better project selection, improved procurement and financial management arrangements, stricter management of quality, and more effective competition; and 3. Delivering Better Public Services for the Poor. Together, the two projects were to help improve access to employment opportunities, health, education, and to other social services and facilities, and generate employment in construction and maintenance activities including labor-intensive works. The rationale for World Bank assistance
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