Document of

The World Bank

FOR OFFICIAL USE ONLY

/ I/2 / '' 4 ._ /t _ )

Report No.9155-IND

STAFF APPRAISAL REPORT

INDONESIA

SULAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

MAY 20, 1991

Asia Country Department VInfrastructure Division

This document has a resudicted dbtribution and may be used by recipients only in the performance oftheir officiid dutes Its conteh may not otherwise be disclosed without World Bank autborization.

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EOUIVALENTS(As of October 1990)

Currency unit - Indonesian Rupiah (Rp)- Rp 1,845

Rp 1 million - $542

WEIGHTS AND MEASURES

Metric Units

FISCAL YEAR

Government of Indonesia: April 1 - March 31Provincial and Local Governments and Enterprises: April 1 - March 31

FOR OFFICIAL USE ONLY

rRINCIPAL ABBREVI TIONS AND ACRONYMS USED

AMDAL - COI onvironmental assessment procescANDAL - OI detailed environmental impact assessment studyAPBD I/1I * Annual provincial/local government development budgetAPBN - Annual central government development budgetBANGDA - Directorate General for Regional Development, MHABAPPENAS - National Development Planning AgencyBAPPEDA I/II - Provincial/Local Development Planning AgencyBPAM - Transitional (pre-PDAM) water supply enterprise owned and

operated by DGCK, MPWBPKP - Central Audic BureauBPD * Regional Development BankBupati - Kabupaten chief executive (district head)CPMO/FO - Central Project Management Office/Finance OfficeDATI I/II - Provincial/local level governmentDGCK - Directorate General Cipta Karya (Human Settlements), MPWDGBM - Directorate General Bina Marga (Roads and Bridges), MPWDCM - Directorate General Monetary Affairs, MOFDGWRD - Directorate General for Water Resource Development, MPWDLA - Domestic Lending ArrangementDPRD I/II - Provincial/Local People's Representate CouncilsDPUK - Kabupaten/Kotamadya department of public worksDPUP - Provincial depaitment of public worksDinas I/II - Provincial/local government departmentsDIP/DIPDA - Central/regional project budgetGOI - Government of IndonesiaIDC Interest during constructionIKK - Kecamatin headquarter town1MG - IUIDP IL.plementation Management Group, BAPPENASINPRES - Presidental Instruction, including a class of GOI grantsIUIDP - Integrated Urban Infrastructure Development ProgramKabupaten - Local (Level II) district governmentKampung - Urban neighborhoodKANWIL - Provincial branch of central GOI departmentKIP - Kampung Improvement ProgramKomisi Daerah - Provincial Commission for Environmental ManagementKotamadya - Local (Level II) city government (incorporated municipality)Kotip - Kota administratip, large kabupaten town designated as

kotamadya for administrative purposes onlyKecamatan - Kabupaten or kotamadya administrative districtLIDAP - Local Institutional Development Action ProgramMCK - Communal lavatory and toilet facilityMIIP - Market InfrastructurA Improvement ProgramMHA - Ministry of Home AffairsMOF - Ministry of FinanceMPW - Ministry of Public WorksMurni - Rupiah murni, or money from "pure" domestic sourcesNGO - Non-governmental organizationNUDS - National Urban Development S.udyO&M - Operations and maintenancePADS - Pendapatan Asli Daerah (local Ljvernment taxes and charges)PbB - National land and bu,ldings taxPDAM - Local government water enterprisePIA - Project Implementation AgreementPIL - Preliminary environmental assessmentPIU - Project Implementation Unit

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed withouit World Bank authorization.

PMDU - Provincial Management and Development Unit for waterenterprises

PMO/FO - Local Project Management Office/Finance OfficePMU - Project Management UnitPP - Government regulationPPSAB - Water supply project implementation branch of DGCK, MPWPUOD - Directorate General for Public Administration and Regional

Autonomy, MHARAKORBANG I/II - Provincial/local annual budget coordination meetingRepelita - Five-year Development PlanRIAP - Revenue Improvement Action ProgramRKL - Environmental Management PlanRPL - Environmental Monitoring PlanSDB - Subsidi Daerah Bawahan (provincial development grant)SDO - Routine central GOI grant, primarily for salariesSEKWILDA I/II - Provincial/local government chief administrative officerSK - Surat Keputusan, decree of a senior officialTKPP - Urban Development Coordination TeamTUA - Directorate of Budget Administration, MOFUNDP - United Nations Development ProgramUSL - Urban Sector Loan (2816-IND)Walikota - Kotamadya chief executive (mayor)

INDONESIA

SULAWESI. IRIAN JAYA URBAN DEVELOPMENT PROJECT

Loan and Project Summary

Borrower: The Republic of Indonesia

Beneficiaries: Nine local governments of Sulawesi and eight waterenterprises in Irian Jaya

Amount: $100 million equivalent

Terms Repayable in 20 years including five years of grace, at theBank's standard variable interest rate

Onlending terms: Part of the proceeds of the loan, equivalent to $27.2million, would be onlent by the Central Government to localgovernments and their water enterprises in Sulawesi andIrian Jaya for 20 years including five years of grace at10.5 percent per annum interest. Interest and commitmentcharges would be payable during the grace period. TheCentral Government would bear the foreign exchange risk.

Project Objectivesand Description: The proposed project would (a) provide urban infra-structure

with emphasis on increased access of households to watersupply, solid waste management and sanitation services; (b)support improved infrastructure expenditure programming andfinancial planning, including the strengthening of localgovernment capacity to prepare and execute annual O&Mprograms; (c) encourage local government and enterpriserevenue generation, improve financial management. In orderto achieve these objectives, the project would include (a)investments in water supply, drainage, solid wastemanagement, sanitation and roads and improvement of kampung(low-income urban neighborhood) and market infrastructure innine cities in Sulawesi; (b) water supply systemrehabilitation and investments in eight cities 'n IrianJaya; (c) project implementation rupport and engineeringservices; (d) municipal management and water enterpriseinstitutional strengthening.

Benefits and Risks: Benefits would flow from more efficient use of resources inthe urban infrastructure sector through improved delivery ofservices by increasingly capable local governments and theirenterprises. The water supply, drainage and roadinvestments would provide important economic and socialbenefits while the solid and human waste managementcomponents would substantially improve the livingenvironment in the urban areas covered by the project.Provision of public water taps and improvement of kampungs

- ii -

would help the urban poor. Because of the low aLsorptivecapacity of local governments in East Indonesia, theinstitutional capacity building effort under the project hasto be limited. The chief risk is therefore that the projectwill not achieve all institutional development objectives.However, the priority given to implementation assistance andO&M capacity building activities should ensure that the flowof benefits frowu the implemer~-ed physical investments wouldbe sustained.

Estimated Cost:/a Local Foreilnotal-------- ($ million) ------

Urban Infrastructure 73.2 47.1 120.3Technical Assistance 11.8 7.5 19.3

Total Base Costs 85.0 54.6 139.6

Physical Contingencies 6.e 5.2 12.0Price Contingencies 8.4 8.9 17.3

Total Project Cost 100.2 8.7L 168.9

Interest during construction(IDC) 2.2 17.1 19.3

Total Financing Required 102.4 85.8 188.2

tLa Includes taxes and duties estimated at $9.6 million equivalent, landacquisition at $4.8 million equivalent and current O&M in the non-watersupply sectors at $9.2 million equivalent.

Financing Plan:Local Foreign Total-------- ($ million) ------

Local governments 18.1 - 18.1Water enterprises 5.1 - 5.1Provincial governments 10.4 - 10.4Private contributions 1.2 - 1.2Central government 33.4 - 33.4Japanese grant 0.4 0.3 0.7IBRD 31.6 68.4 100.0

,Subtotal 100.2 68.7 ,168.9

Local governments and water 2.2 4.7 6.9enterprises (IDC)Central Government (IDC) - 12.4 12.4

Total Financing Recuired 102.4 85.8 188.

- iii -

,IBRD Fiscal Year--------- ($ million) ---------

Egtijated Disbursements: 12 1993 1994 1995 1996 1997

Annual 19.1 27.6 21.2 16.4 12.0 3.7

Cumulative 19.1 46.7 67.9 84.3 96.3 100.0

Economic Rate of Return: 10 percent or more for water supply, roads and

drainage investments (f,7 percent of project costs)

HOibR: IBRD No. 22798

- iv -

INDONESIA

SULAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

Table of ContentsWae No.

I. Ilj URBAN SECTOR . . . . . . . . . . . . . . . . . . . . . . 1A. Sector Overview . . . . . . . . . . . . . . . . . . . . 1B. Urban Development in Sulawesi and Irian Jaya . . . . . . 5

II. JECTOR STRATEGY AND BANK EXPERIENCE . . . . . . . . . . . . 6A. Government Strategy. . . . . . . . . . . . . . . . . . 7B. Bank Experience . . . . . . . . . . . . . . . . . . . . 7C. Bank Strategy . . . . . . . . . . . . . . . . . . . . . 13

III. THE PROJECT . . . . . . . . . . . . . . . . . . . . . . . . 15A. Project Origin and Formulation . . . . . . . . . . . . . 15B. Project Objectives . . . . . . . . . . . . . . . . . . . 16C. Project Description .... . . . . . . . . . . . . . . 16D. Project Costs . . . . . . . . . . . . . . . . . . . . . 17E. Financing Plan . . . . . . . . . . . . . . . . . . . . . 20

IV. PROJECT IMPLEMENTATION . . . . . . . . . . . . . . . . . . . 22A. Responsibilities . . . . . . . . . . . . . . . . . . . . 22B. Project Implementation Agreements . . . . . . . . . . . 25C. Implementation Schedule .25D. Procurement .26E. Disbursement . . . . . . . . . . . . . . . . . . . . . . 27F. Project Accounts and Audits . . . . . . . . . . . . . . 29G. Project Reporting, Monitoring and Bank Supervision . . . 29

H. Operations and Maintenance . . . . . . . . . . . . . . . 30

V. FINANCIAL ASPECTS .. 30A. Local Governments .30B. Water Enterprises . . . . . . . . . . . . . . . . . . . 33

VI. PROJECT JUSTIFICATION AND RISKS . . . . . . . . . . . . . . 34A. Project Beneficiaries and Poverty Impact . . . . . . . . 34B. Economic Analysis .35C. Environmental Impact .36D. Risks . . . . . . . . . . . . . . . . . . . . . . . . . 37

VII. AGREEMENTS TO BE REACHED AND RECOMMENDATION . . . . . . . . 37

The report is based on the findings of an appraisal mission which visitedIndonesia during October/November 1990. The miss:on consisted of L. Lovei(economist/leader), H. Unger (municipal engineer), A. Velderman (sanitaryengineer) and W. Lane, D. Martin, E. V. Pol (consultants). The peer review teamcomprised of Messrs. J. Kozel (municipal engineer), D. Butcher (anthropologist)and R. V. Pulley (economist). The report was endorsed by L. Jeurling, SectorOperations Division Chief and R. Cheetham, Country Director.

ANNEXES

1. Detailed Project Cost Estimates . . . . 392. Financing Plan Tables . . . . . . . . . . . . . . . . . . . 413. Summary of Technical Assistance . . . . . . . . . . . . . . . 444. Implementation ArrangementE .. 59

A. Schedule . . . . . . . . . . . . . . . . . . . . . . . . . 59B. Responsibilities and Organization . . . . . . . . . . . . 61C. Contracts and Procurement Method . . . . . . . . . . . . . 70D. Disbursement Arrangements and Schedule . . . . . . . . . 78E. Key Implenentation and Performance Indicators and

Reporting Systems .85F. Supervision Plan . . . . . . . . . . . . . . . . . . . . . 86C. Operation and Maincenance ..... . . . . . . . . . . . 88

5. Local Government/City Profiles ..... . ...... . . . . 936. Technical Assessment ....... . . .......... . . 947. Fconomic Analysis ........ . ........... . . 1088. Water Enterprise Financial Tables . . . . . . . . . . . . . . 1129. Local Government Financial Tables . . . . . . . . . . . . . . 12710. Environmental Assessment . . . . . . . . . . . . . . . . . . . 13611. Key Documents in the Project File . . . . . . . . . . . . . . 174

MAP

IBRD No.: 22798 Project Cities

- 1 -

STAFF APPRAISAL REPORT

INDON4ESIA

SULAWESI - TRIAN JAYA URBAN DEVELOPMENT PROJECT

I. THE URBAN SECTOR

A. Sector Overview

1.1 Demographic Trends. The urban population in Indonesia exceeds 50millionl/ and is growing at a rate of over 5 percent per year, more thandouble the overall national population growth rate. By the year 20CO, about90 million or 43 percent of Indonesians will be city dwellers. Urbanemployment has also grown at about 5 percent per year, much more rapidly thanthe national rate and offering hope for absorption of surplus rural labor.Indonesia's urban settlements include ten metropolitan and large cities ofmore than 500,000, forty secondary cities of over 100,000 (provincialheadquarters and incorporated municipalities), two hundred small towns(district headquarters) over 20,000 and about 3,200 service centers (sub-district headquarters) with populations of 3,000 to 20,000. While changes in

urban boundaries and census definitions make inter-city comparisons difficult,it appears that metropolitan cities over one million and secondary citiesbetween 100,000 and 500,000 have grown most rapidly since 1970. Servicecenters under 20,000 have grown most slowly.2/

1.2 Institvtional Framework: National Administration. The NationalDevelopment Planning Agency (BAPPENAS) is responsible for overall planning andthe allocation of resources, with focus on Five-Year Devel- ent Plans(Repelita) and Annual National Development Budgets (APBN). The Ministry ofHome Affairs (MHA) is responsible for ove,sight of the regional governments,primarily through its Directorate Gene,.al for Public Administration andRegional Autonomy (PUOD) and Directorate General for Regional Development(BANGDA). The Ministry of Public Works (MPW) is responsible for oversight ofmost infrastructure. Within MPW, the Directorate General for Human Settlements(Cipta Karya or DGCK) is responsible for oversight of city and regionalplanning, water supply, urban drainage, sanitation and sewerage, solid wastemanagement, kampung neighborhood improvement (KIP) and market infrastructureimprovement (MIIP). Also within MPW, the Directorate General for Roads (BinaMarga or DGBM) is responsible for oversight of urban roads and bridges and the

Directorate General for Water Resou:ce Development (DGWRD) is reeponsible for

1/ 1990 Census, Biro Pusat Statistik.

2/ Cipta Karya, National Urban Development Strategy Final Report. September1985, page 3, and Biro Pusat Statistik, Intercensal Population Survey(SUPAS 85).

- 2 -

oversight of urban f,ood control and ulk water supply. The Ministry ofFinance (MOF) is responsible for central and local finance through itsDirectorate General for Monetary Affairs (DGM), though the Directorate Generalfor Budget (DGA - Angaran) actually administers grant transfers; property taxadministration through its Directorate General for Taxation (DGP - Pajak); anddnalysis of regional finance through its Agency for Financial Analysis (BAK -Badan Analisa Keuangan). Other concerned central agencies include tneNational Land Agency, the Ministry of State for Administrative Reform,Directorate General for Land Transport of the Ministrv of Communications, theMinistry of State for Environment and Population, the Ministry of State forHousing, the Ministry of Education and Culture and the Ministry of Health.All key rgencies are represented in the Interagency Coordinating Team forUrban Development (Tim Koordinasi or TKPP) chaired by BAPPENAS.

1.3 Regional Administration. .ndonesia has a highly centralized unitarygovernment in which all powers are held by the center that are notspecifically assigned to lower levels. Since 1974, however, the provincial(Level I) and local (Level II) governments have been given increasingresponsibilities and delegated authority. in all there are 27 provinces and301 local governments, including 54 kotamadyas (municipalities) and 247A%abupatens (districts). Legislative powers at both provincial and locallevels are held by People's Representative Councils (Dewan Perwakilan RakyatDaerah or DPRD) consisting of mostly elected representatives.

1.4 The executive branches of prou"incial governments are headed bygovernors who serve as representatives of the President and the overallcentral government (GOI), and also as head of the semi-autonomous provincialadministrations. Bupatis (kabupaten heads) and walikotas (kotamadya mayors)have parallel roles in representing the governors and provincial governments,and in heading their own local governments. Regional Development PlanningAgencies (BAP'EDA I and II) report directly to their respective governorL,district heads or mayors, and have planning and resource allocation respon-sibilities. Regional government services are provided by separate departmentc(Dinas I and II) analogous to line ministries of the central government androutine administration is provided by bureaus under the regional secretaries(SEKWILDA T and II). Most central line agencies are represented at theprovincial level by their KA!NWIL (Kantor Wilayah or regional offices). KANWILof MPW are located in all provinces and their primary role in the urban sectorhas been the execution of infrastructure projects financed from centralgovernment sources. Their secondary role, the provision of technical guidanceand assistance to the concerned provincial and local Dinas I and II publicworks denartments (DPUP and DPUK), is becoming increasingly impo,tant.Government Regulation PP14 of 1987 significantly expanded urban infrastructurerespor,ibilities assigned to DPUPs and DPUKs, and provided guidelines forclas .fication of public works infrastructure responsibilities for thecentral, provincial and lccal levels. PP6 of June 1988 clarified relationsbetween regional offices (KANWILs) of MPW and provincial public worksdepartments (Dinas) under the authority of the provincial governors. MPWannounced its intention that the KANWILs responsibility for projectimplementation would be confined to responsibilities that are purely national(e.g., national roads) in accordance with the functional classification systemdefined under PP14.

- 3 -

1.5 Sector Constraints and Priorities. While average incomes in urbanareas have risen substantially over the past eight year", distribution ofincome remains unequal and in 1987, over 20 percent of urban dwellers wereestimated 3/ still to be poor. The problems of income distribution areexacerbated by deficiencies in basic services and degradation of environmentalcondit.ons leading to poor health among the lod-inco.e population inparticular. Current estimates indicate that about 75 percent of the urbanpopulation does not have direct access to piped water supply. Almost twothirds of all urban households still rely on wells, and about 11 percent aredependent on a system of water vendors. About 65 percent of low-income groupsshare toilets and use of canals for sanitation purposes remains common. Inthe larger cities, inadequate industrial water supply and liquid and solidwaste disposal is a serious proolem. In terms of GOI's service and equityobjectives, more low-cost, local or tertiary systems investment are needed inexisting under-served urban areas.

1.6 The Bank's 1984 Urban Services Sector Report (No. 4800-IND)estimated that total expenditures by central and local government on urbanservices inveitment4/, operation and maintenance (O&M) during Repelita IV(1984-89) should be increased to 0.7? of GDP in order to reduce the backlogand keep up with increased demand for urban services. For a brief period in1987-89 expenditures were approaching this level aided by the Urban SectorLozn (2816-IND) and other donor financing and drawing down a pipeline ofprojects prepared in the mid 1980s. However, by 1989 this pipeline had beensubstarntially reduced and expenditures fell back to previous levels (0.4? ofGDP). This is substantially below the level required to address existingdeficiencies and deal with the growth in urban population and industry.

1.7 Sector Finan:es. The finances of provincial and local governmentshave long been dominated Dy central government transfers and characterized byweak local resource mobilization, low per-capita budgets and very limited useof credit for capital investment. In 1983/84, cer,tral governmenttransfers 5/ financed over three quarters of aggregate recurrentexpenditures and almost 80 percent of capital investments. By 1986/87,central government budgetary constraints caused by fallitrg oil revenues led toa severe curtailment of local investment programs which were reduced fromalmost half of local budgets in 1983/84 to less than one qu&rter in 1986/87.The high level of growth (18.5 percent ner year) in loca'lly generated reienuesfailed to significantly close the gap. Borrowings, at about 4 percent of

3/ Central Bureau of Statistics as reviewed in the Bank's Poverty Report(Report No. 8034-IND).

4/ Water supply, roads, draine, human and solid waste management.

5/ Including SDO central routine grants and INPRES central developmentgrants, but not including APBN DIPs (central GOI budget grants-in-kind).Some of these grants are formula based, some are ad hoe. Tbere aregrants which can be used for several kinds of expenditures and grantswhich have a more restricted use.

- 4 -

total local receipts, continue to be an insignificant feature of the financingsystem for most local services.

1.8 The dominant role of grants in the system of financing localgovernment services is the result of very limited local taxing authority. Forexample, the potentially most promising local revenue source, the propertytax, has an effective rate of 0.1 percent set by the central government.Since the central governmenL is reluctant to delegate substantial taxingauthority to local governments, grants are a way to resolve the conflictbetween local governments' taxing authority and expenditure responsibility.

1.9 Inter-goverDnent transfers are not the only contribution from thecentral government to the urban infrastructure sector. As it was mentioned inparagraph 1.4 above, the regional offices of central government agenciesexecute a large number of infrastructure projects financed from the nationalbudget (APBN DIP). While the classification of urban infrastructureresponsibilities is still an ongoing exercise, it is clear that several ofthese projects create infrastructure which, according to PP14, is localresponsibility. These central government grants-in-kind contributions arejustified on the basis of weak institutional capabilities and lack offinancial resources at the local government level. In the past, however,these projects frequently led to operation and maintenance responsibilitieswhich the local governments were not able to fulfill or, since theinfrastructure created was of low priority for them, did not want to fulfill.

1.10 Sector coordination and local participation. Due to the steeplyhierarchical decision systems, coordination of the urban sector has been poor,and locpl participation in the decision processes has been limited. Thesheer size and diversity of the country, the rapid pace of urbanization, thenumber of concerned agencies, the lack of effective management informationsystems and, perhaps most importantly, cultural constraints upon horizontalcommunication within and among agencies, have led to a fragmented approach tourban development. As national attention to urban problems increases, so toois the real potential for further fragmentation and inefficiency.Improvements must begin at the local government and community level, whereeffective coordination is much easier to sustain than in the large centralgovernment.

1.11 Urban infrastructure issues. Major issues faced in the sector bycities of medium size are: (a) large infrastructure deficiencies and O&Mbacklogs; (b) lack of coordination in planning, in particular oftransportation and land use; (c) weak financial management as evidenced bydeficient accounting practices and tle lack of adequate cost recovery, revenuegeneration, use of credit and consideration of private sector options;(d) weak management of water enterprises and municipal improvement programsincluding drainage, solid waste disposal, and kampung micro-infrastructure;(e) inefficient compression of the design and construction cycles into singlefiscal years; (f) poor information systems, and (g) complex and changingrelationships among local, provincial and central agencies with rospect toassignment of responsibilities for project and program preparation, appraisal,financing, implementation and O&M; (h) lack of trained and experiencedmanagerial and technical personnel at all levels. While the scales of these

problems are smaller in the cities targeted in the proposed project than in

the large metropolitan cities such as Jakarta and Surabaya, so too are theresources available for their solution.

B. Urban Development in Sulawesi and Irian Jaya

1.12 Sulawesi has an urban population of about 2.5 million, almost halfof them living in the two largest cities, Ujung Pandang and Manado, atopposite ends of the island. The total population of the island is about 12.5million, growing at an annual rate of about 2 percent. The share of the urban

population (20 percent) is lower than the nationwide average, which suggeststhat the island is somewhat less urbanized than the rest of the country.However, on the basis of the 1987 national socioeconomic survey, the incidenceof urban poverty was substantially higher in Sulawesi than the nationwideaverage. According to the government's regional development plan, UjungPandang (a city of 800,000) is the designated socio-economic center of EastIndonesia.

1.13 Irian Jaya is best described as an extensive area of underdevelopedhinterland populated by a large number of subsistence communities, poorlylinked to coastal urban areas. The urban areas are the centers of publicservices and also increasingly important centers of trade, transportation andsecondary industries. In many cases, these cities are characterized by the

nature of their primary hinterland resource base (oil, mining, fisheries,logging). Irian Jaya has an urban population of about 350,000 people out of a

total population of 1.6 million. Seventy five percent of the urban populationare transmigrants or are born to parents who migrated from other provinces and

are considered to be non-Irianese. The urban incidence of poverty, althoughincreasing, was still lower than the nationwide average in 1987. Fastpopulation growth in the cities is primarily due to migration from otherprovinces, but rural Irianese have also been moving into the urban areas.Many of the newcomers settle down in low income areas where high populationdensity puts increasing pressure on infrastructure services.

1.14 The key issues in the urban sector in Sulawesi and Irian Jaya are

reflections of national problems. High growth in urban population resulted inrubstantial backlogs in the provision of urban infrastructure services. Theweak urban planning and programming capabilities of local governments aremaking it difficult to achieve improved effectiveness of investments,elimination of imbalances in the urban expenditure patterns and adequate

maintenance of existing city infrastructure. While the provincialgovernments, due to the generally small size and dispersed location of urbancenters in the two islands, are the natural intermediaries for the preparationand implementation of both centrally and foreign aid financed operations,provincial intermediation capabilities are almost non-existent. Waterenterprises, with the exception of che ones in the large cities, depend on

capital subsidies frcm the central government. The poor cost recoveryperformance is a reflection of low quality of service provided (usuallyintermittent supply) and low efficiency of operations. More generally, the

level of local resource mobilization in Sulawesi and Irian Jaya (on a percapita basis including both local taxes and user charges) is substantiallybelow the nationwide average.

- 6 -

II. SECTOR STRATEGY AND BANK EXPERIENCE

A. Government Strategy

2.1 Faced with large deficiencies in urban infrastructure services andfast growing urban populations, GOI's strategy emphasizes physicalinfrastructure provision targets. These targets, describing the capacity ofwater supply systems to be constructed, length of roads to be built,percentage of population to be supplied with safe water, sanitation services,etc., usually have a prominent place in the medium-term national developmentplans. For example, in connection with the UN Drinking Water and SanitationDecade, GOI set the target of providing safe water supply to 75 percent of theurban and 60 percent of the rural population by 1990 and asked for the help ofmnulti- and bilateral donor agencies. The latest estimates indicate that 36percent of the rural and 46 percent of the urban population had access toclean water in 1988, compared to 26 percent and 38 percent, respectively, in1980.6/ Even though targets were not achieved, this is still an impressiveperformance in view of the almost 40 percent increase in the urban populationin that period. The main constraint has not been the availability of fundsbut the capacity to prepare and implement projects. The government's responseto that has been (a) to develop standardized, mass delivery programs plannedand executed by the central government (but with operation and maintenanceresponsibility at the local level) in order to reduce service deficiencies inthe short-run, and (b) to build-up implementation capacity through localgovernment institutional strenghtening, reinforced through decentralization,as an important element of GOI's strategy in the long-run.

2.2 GOI has taken important strides toward establishing a basis forimproved sectoral management at the national level. BAPPENAS has beendesignated to lead a high-level inter-agency team (Tim Koordinasi - TKPP)representing the concerned agencies and charged with responsibility foroverall urban sector policy development and coordination. The policypriorities for urban development in Indonesia were articulated in the 1984Urban Services Report (4800-IND) and the 1987 Public Resource ManagementReport (7007-IND), in patticular on O&M and local government finance. Toaddress these priorities, the government issued a Statement of Policies forUrban Development in 1987 which represented a consolidated view of developmentin the sector. This Policy Statement, which is incorporated in Repelita V aniwas supported by the Urban Sector Loan (2816-IND), includes: (a) strengtheninglocal governments to assume the leading role in developing, operating andmaintaining local services on a sustainable basis over the long-term; (b)improving the planning and programming of urban infrastructure investments;(c) mobilizing local revenues and optimizing their use; (d) implementing acoordinated financing system for the development and administration of localservices; and (e) strengthening the consultative process at various lev3ls ofgovernment, with emphasis on upgrading participation of local municipalitiesand districts. These objectives are now being fine-tuned to emphasize the

6/ See Indonesia Urban Services Sector Report, No. 4800-IND and IndonesiaPoverty Assessment and Strategy Report, No. 8034-IND.

- 7 -

following priorities for the near-to-mid term: (a) expansion of the scope ofthe Integrated Urban Infrastructure Development Programming (IUIDP) process toselectively include additional subsectors which play a critical role in theeconomic role of major towns and cities, in particular; (b) strengthening oflocal government institutional development and training; (c) improvedinfrastructure O&M; (d) improved cost recovery and implementation of a morefully integrated system for the financing of urban services; and (e) increasedattention to urban land and environmental management.

2.3 Poverty reduction and regional balance in development are prominentobjectives of the current national medium term development plan (Repelita V).High levels of poverty exist in East Indonesia (especially in South-EastSulawesi, Maluku, NusL Tenggara and Irian Jaya) and the strong emphasis givenin Repelita V to infrastructure development in the outer islands is a naturalconsequence of GOI's recognition of the problem. Overall GOI strategy forregional development is still evolving but specific investment programstargeted to backward areas and increase in general resource availability insuch areas through the INPRES grant transfer system are the key buildingblocks.

2.4 Also under Repelita V, GOI has targeted the expansion of borrowingby local water enterprises as a special priority. Recognizing the need foroperational guidelines to induce a higher level of credit financing, GOI isplanning to adopt less conservative financial criteria for borrowing by localgovernments and their enterprises (debt service coverage ratio of not lessthan 1.5 for local government general fund operations and not less than 1.3for local enterprises such as water supply PDAMs). This would bring the legalborrowing capacity for local governments, particularly the large cities, morein line with their considerably unused paying capacity.

2.5 The government's strategy is to move interest rates towards marketrates over the medium to long term. Given the substantial grant element inthe financing system for local services in Indonesia, the question of interestrate must be viewed in the context of overall sector finances. Many localgovernments have little or no experience with loan financing, having preferredinstead to rely on central government transfers in spite of the very low (twoto four percent) or, in some cases zero, interest rate on domestic loans forthe vast majority of governments. Only the nation's largest cities havesignificant experience with interest rates in the range of nine-twelvepercent. There is a widespread concern in GOI that, unless the interest rateapplied is low, it will not be possible to induce local governments and theirenterprises to adopt a more active borrowing posture, within prudent limits.

B. Bank Experience

2.6 Worldwide experience in water supply.7/ The Bank has beeninvolved in this sector since the 1960s. There has been relatively little

7/ Based on OED "Annual Review of Evaluation Results' in 1987, 1988, 1989(Report Nos. 7404, 8164, 8970) and several project audit reports.

evolution in the Bank's approach. The scale of projects became larger andmany involved assistance to a number of smaller entities under one operation.Some operations relied on intermediaries to exercise control overimplementation and to provide assistance to the beneficiary entities. Manyoperations aimed at the consolidation of water entities. While the majorityof projects provided substantial economic and health benefits, experienceshows. that (a) the achievement of institutional and cost recovery objectiveshas been slow and difficult; (b) there are persistently high levels ofunaccounted-for-water; (c) there are delays in project implementation due toinadequate project preparation, slow land acquisition, cumbersome procurementprocedures; (d) inadequate attention is paid to the disposal of wastewater indensely populated areas.

2.7 Worldwide experience in the urbar. sector.8/ Bank involvement inthe urban sector started in tha early 1970s with low cost investment projectsin shelter, water supply, sanitation and urban transport aimed at alleviatingurban poverty. Sites-and-services and slum upgrading projects were intendedto demonstrate replicable approaches that could provide benefits to the poorwhile recovering costs and reducing the financial burden on the public sector.Many of these projects have been reasonably successful in meeting physicalobjectives, but they have not had an impact on the policies of national andlocal governments and on the issues of managing the urban economy. The policydialogue between the Bank and governments focussed on physical aspects andsome institutional issues but there was insufficient attention to the broaderpolicy framework such as intergovernmental fiscal relations. Moreimportantly, because many urban programs did not achieve sustainable policyreform and institutional development, the projects were generally notreplicable. In only a few cases, such as the Kampung Improvement Program inJakarta, have citywide impacts been achieved. Like water supply, urbanoperations also experienced substantial implementation delays due toinsufficient project preparation and very ambitious implementation timetables.Government efforts have not mobilized the private sector and communityinitiative, but in many cases have increased the cost of private solutionsthrough overregulation and rationing of scarce capital for investment.

2.8 By the mid-1980s the experiences of donor-assisted projects had ledto shifts in external approaches to the urban sector. The central premise ofthese shifts was the recognition that governments were unable to provide theshelter, infrastructure, and services needed by rapidly growing urbanpopulations. Instead, a more realistic assessment of the capacities of thepublic sector had led to the conclusion that greater efforts had to be devotedto (i) improving the management of urban institutions and intergovernmentalfiscal relations; (ii) improving local resource mobilization; (iii)strengthening the management of urban infrastructure, particularly with regardto maintenance; (iv) establishing regulatory frameworks that were enabling,rather than constraining; and (v) strengthening financial services for urban

8/ Based on OED reports mentioned above, on draft PRE Report "Urban Policyand Economic Development: an Agenda for the 1990s", dated November 30,1990 and also on PRE Report "FY89 Sector Review Urban DevelopmentOperations", Report No. INU-OR3.

- 9 -

development, and, where feasible, (vi) reducing the public role in urbanservice delivery.

2.9 Recent initiatives by governments and donors in these areas reflecta growing appreciation of the importance of policies, institutions, andregulations in formulating effective strategies to manage urban growth. Byassuming that government--first central and now local--could provide theinvestment needed to serve the majority of the urban population, bothgovernments and donors have given little attention to the important role ofprivate households, communities, and firms in providing for their own needs.A new policy framework is needed that truly enables nonpublic actors and isrealistic in appreciating the relative roles and importance of the public andprivate sectors. The policy framework must also link the management andproductivity of the urban economy to the broader objectives of economic growthand development policy.

2.10 Experience in Indonesia. Generally, Bank experience confirms that(a) the combination of limited planning and implementation capacity at thecentral level and the difficulties inherent in providing essentially localservices by central government departments decreases the efficiency of massdelivery programs; (b) capacity building at the local level is a long-runprocess that needs to be accompanied by an increase in local responsibilityand accountability; and to develop such responsibility and accountability (c)central-local financial relations need to develop in the direction of morelocal government autonomy. As summarized in Table 1 elow, the Bank hasfinanced eight completed and eight ongoing urban and water supply projects inIndonesia since 1974, touching more than fifty local governments and many oftheir water enterprises. Urban lending operations in Indonesia haveprogressed from demonstration projects in Jakarta through more programmaticinvestments in selected other large cities, still limited in geographic andsubsectoral scepe, to sector lending within an agreed policy and institutionalframework. Water supply projects initially covered only a few cities, butlater, like Bank projects in other countries, assisted a large number of urbansettlements under one operation.

- 10 -

Table 1. URBAN AND WATER SUPPLY PROJECTS IN INDONESIA

Loan Fiscal Year Project Name Original PPAR/PCRNo. Effective Closed Loan Rep. No. Year

1040 1975 1981 Jakarta Urban Development 25.00 4620 19831049 1975 1982 Five Cities Water Supply 14.50 6256 19861336 1977 1984 Second Urban Development 52.50 6329 19861653 1979 1987 Third Urban Development 54.00 8583 19901709 1981 1987 Second Water Supply 36.00 8622 19901972 1982 1988 Fourth Urban Development 43.00 8583 19902236 1983 1991 Jakarta Sewerage/Sanitation 22.402275 1983 1990 East Java Water Supply 30.602408 1984 Fifth Urban Development 39.252632 1986 Second E. Java Water Supply 43.302725 1986 Housing Sector Loan 200.002816 1987 Urban Sector Loan 270.002817 1987 Reg. Citieq Urban Transport 51.002932 1988 Jabotabek Urban Development 150.003219 1990 Se-ond Jabotabek Urban Dev. 190.003246 1991 Third Jabotabek Urban Dev. 61.003304 1991 East Java - Bali Urban Dev. 180.30*

1,462.85

* not yet effective as of April 30, 1991.

2.11 Multi-subsector urban development projects, Urban I-V (Loans 1040,1336, 1653, .972 and 2408-IND), provided substantial assistance fordeconcentrated programs of low-cost micro-infrastructure (KIP), city-widedrainage and solid waste management in eleven major cities. They alsoassisted development of GOI's low-income housing program, now supported underthe Housing Sector Loan (2725-IND), and several important institutionalinitiatives, including local government finance, planning and programming,O&M, and land information. Separate sub-sectoral programs in water supply,sewerage and urban transport have been supported by seven loans to date. Thefirst two such loans (1049 and 1709-IND) helped in the development of watersector organization and financing policies. Under subsequent projects in EastJava (Loans 2275 and 2632-IND) water sector development was emphasized anddeconcentration of implementation capacity was introduced to increase theprogram scale and pace. Loan 2236-IND (Jakarta Sewerage and Sanitation) hassought to implement pilot human waste disposal projects and strengthen wastedisposal institutions in Jakarta. Two recent loans (2817 and 2932-IND) focuson urban transport sector development in Indonesia's five largest cities,emphasizing least-cost traffic and public transport solutions and localinstitutional development. The combined experience of these projects isreflected in the Urban Sector Loan (2816-IND) and also in the Second and ThirdJABOTABEK Urban Development Projects which focus, respectively, on waterresources and kampung improvement in the Jakarta metropolitan area.

- 11 -

2.12 Completed ProJects. Of the eight loans closed to date, four havebeen evaluated by the Bank's Operation Evaluation Department. Urban III andIV were combined in one project completion report. The issues and lessonsfrom these reports are discussed below.

2.13 Water supply. While about one million people received improvedwater supply due to the two projects, the project performance audit reports(No. 6256 and 8622) emphasized the following problems: (a) substantial delaysin project implementation were caused by inadequate preparation, especially bythe late preparation of detailed designs (after the loans became effective);(b) over-optimistic water demand and unaccounted-for-water projections andunderestimated production costs led to the inability of the water enterprisesto fulfill (too ambitious) financial covenants and difficulties in servicingdebt; (c) inadequate attention was given to institutional development andmanagement of technical assistance. For the proposed project, detaileddesigns have been prepared in advance, the availability of alternative watersources and the forecast levels of water tariffs have been taken into accountin water demand projections. Also, technical assistance will be managed on aregional basis, close to the sites where the project is implemented.

2.14 Urban projects. According to the project performance audit reports(No. 4620 and 6329), the civil works included in the first two urban projectswere completed according to appraisal schedules. However, considerable delayswere experienced in the selection and appointment of consultants, thereforethe loan closing dates had to be extended by three years to complete thetechnical assistance components (for institutional development on the nationallevel and preparation of subsequent projects). Water supply components underthe kampung improvement programs experienced the same problem as the freestanding water supply projects, that is, the water demand projections wereover-optimistic and willingness to pay for the piped water was less thanexpected where alternative groundwater sources existed. The need fcr formal.naintenance arrangements was noted and it was proposed that the maintenaceissue should be addressed more carefully in future projects. The proposedproject includes both maintenance expenditures and institution capacitybuilding for O&M.

2.15 The combined Project Completion Report (PCR) for the most recenitlycompleted urban projects (Urban III, 1653-IND; and Urban IV, 1972-IND)highlighted the following issues and priorities of urban development inIndonesia: (a) successful project implementation requires local participationand visible leadership by the chief executive (bupati or mayor) of the localgovernment; (b) operations and maintenance budgets and institutionalcapacities are inadequate at all levels; (c) coordinated planning andprogramming of urban infrastructure is essential; (d) improved local resourcemobilization is necessary for sustaining urban development programs; and(e) decentralization of urban development program implementation requiresstrengthened municipal management, technical staff capacities and operationalsystems. Some of the functional requirements and policy reform options toaddress these issues are now being explored under the ongoing Urban V project(Loan 2408-IND) and the USL (Toan 2816-IND) on a national basis (see below).The need for coordinated infrastructure planning was the key to the

- 12 -

development of the IUIDP concept, which will be implemented under thecurrently approved East Java - Bali Urban Development Project (Loan 3304-IND).

2.16 Beneficiary households and communities are involved routinely in theidentification, preparation and implementation of KIP neighborhood improvementprograms that have been supported under Bank loans for more than ten years.Market neighborinood improvement (MIIP) programs have a similar participatorybase. C)I's successful solid waste management and sanitation programs alsorely on participation of beneficiary households and communities, and havereceived increasing support under the Urban III, IV and V projects. On-sitesanitation schemes introduced under the Urban V project, for example,emphasize household financing and the use of NGOs for community management ofimplementation. Water supply investments supported by the Bank now requireassessment of cost recovery potential from the beneficiary households; roadinvestments must be based upon specific road-user needs; drainage investmentsemphasize needs expressed by communities subject to flooding. Mostimportantly, the overall infrastructure planning (IUIDP) process supported byGOI and the Bank is designed to upgrade the effective role of localparticipation: (a) to start planning and decision processes at a level lowenough in government so that beneficiaries can participate directly; (b) tostart early enough in the budget process so that adequate attention can beprovided ta subproject design in meeting beneficiary needs; (c) to placeincreased emphasis on local responsibility for O&M, and (d) to take advantageof local human resource and institutional capacities through the entireproject cycle.

2.17 The Sector Loan. The recent Urban Sector Loan (2816-IND) was anattempt to put institutions and policies in place to carry out the urbanprogram more effectively in a decentralized fashion. Steady progress has beenmade in introducing a number of administrative improvements including localresource mobilization, infrastructure O&M, etc. and a more structured approachto further institutional and human resource development is now also beingdeveloped. However, changes in key policy makers have eroded the consensuswithin the government over the urgency of a number of structural reformsincluding grant reform and introduction of a local government loan fund. Inretrospect, it is clear that the Government was unprepared for these reformswithin the timeframe of the Urban Sector Loan; central government executedand grant financed projects will continue to play a role in providing urgentlyneeded urban services even as the long-term reform program to strengthenmanagement capability and financial autonomy at the local government level isbeing put in place. Performance of the Urban Sector Loan in supportingpriority expenditures and increasing disbursements in the sector has beensatisfactory. Provision of counterpart financing through the Urban SectorLoan enabled Indonesia to expand sector expenditures in keeping with (if notyet achieving) the recommendations of the Bank's Urban Services Sector Report.

2.18 Sulawesi. The Bank's direct project experience in the urban sectorin Sulawesi was limited to two cities, Pare Pare and Ujung Pandang. TheSecond Water Supply Project financed piped water supply system development inPare Pare with a total cost of US$3.5 million. Implementation of the ParePare sub-project suffered a two year delay and neither the technical targets

- 13 -

(provision of safe water, lower unaccounted-for-water), nor the financialtargets (rate of return on assets, accounts receivable) were met. The UrbanIII project financed kampung improvement in Ujung Pandang with a total cost ofUS$7 million. This sub-project also suffered a two year implementation delaybut otherwise was considered quite successful with an estimated ERR of 41Z.The Urban V project financed kampung improvement, solid waste management anddrainage improvement in Ujung Pandang. The total estimated cost of the UjungPandang program was US$12 million at appraisal. According to recentestimates, Ujung Pandang will complete its program in the final project yearwithout serious difficulty and achieve all physical targets. Modestinstitutional improvement targets were also achieved, but the city revenueforecasts proved to be too optimistic.

2.19 Irian Jaya. The Bank has no direct project experience in IrianJaya. Several nationwide sector operations (Third Agriculture Extension,Forestry Institutions and Conservation, Urban Sector Loan, Highway SectorLoan) financed expenditures in the island, but that coverage was very broadand perfunctory. In addition, the Transmigration V project (Loan 2578-IND)financed transmigration settlement planning studies directed at the southernpart of the island, however, the Bank was not involved in the implementationof the studies.

C. Bank Strategy

2.20 The Bank strategy mirrors the government strategy with emphasis on(a) improving service levels in a regionally balanced fashion and particularlyfor the poor; (b) improving urban productivity and the effectiveness ofinvestments through better infrastructure planning and programming, especiallyat the city level and through enhanced local government capacity for fiscalmanagement, revenue mobilization, project implementation and O&M; (c)improving the urban environment by enhancing local government capacity toplan, implement and operate infrastructure in an environmeintally sound fashionand also by enhancing community participation. Recognizing the limitations ofcentral planning and administration of local services, the Bank gcnirallysupports the decentralized approach implied by GOI's long-term developmentobjectives for the sector. Bank-wide experience suggests thatdecentralization combined with strong efforts to increase local governmentcapacity offers the best prospects for dealing with urban managementconstraints including project preparation, implementation and O&M and forimproving the efficiency of resource allocation.

2.21 Improving service levels. The Bank agrees with GOI that increasedaccess to infrastructure services, especially for the poor, is an importantobjective. However, there is no simple solution to the problem ofinstitutional capacity constraints and attempts to mass deliver standardizedsystems are fraught with problems. Inflexibility in design leads to solutionsill adapted to local circumstances, low willingness to pay by the consumersand lack of funds and institutional capability for maintenance. This is avery high price to pay and may hinder the achievement of another equallyimportant objective, the maximum contribution from urban infrastructure to theeconomic development of the cities. Therefore, while the Bank strategysupports targeted interventions to increase access for the poor (e.g.,

- 14 -

subsidized water standpipe and kampung improvement programs), it alsoemphasizes the importance of long-term programs to enhance the capacity oflocal governments and comm%itniies to implement infrastructure projects andmaintain the assets created. Provision of financial and managerial incentivesthrough a properly designed planning and regulatory framework for the localgovernments and the pr±vate sector is another equally important aspect of thestrategy.

2.22 Improving urban management capacity. The Bank's strategyincreasingly emphasizes city-wide management, particularly in the large citiesto improve coordination, accounting, tax and land administration,environmental management, private sector participation, project preparation,implementation and O&M and ultimately urban productivity. Based on experiencegained under the six completed and eight ongoing urban projects, the Bankstrategy recognizes that implementation of GOI's strategy as operationalizedthrough IUIDP (para 2.2) depends on the institutional capacity of individuallocal governments and local water enterprises. In parts of the country whereinstitutional constraints are less pronounced it is possible to establishprovincial intermediation capacities, programmatic Bank lending and highlevels of cost recovery. In other less developed parts of the country such asEast Indonesia, where local capacity is less developed, regular projectlending is more appropriate and cost recovery is more difficult. The Bankstrategy recognizes that regionally balanced development is a legitimateconcern of GOI and development of urban areas in the Eastern part of thecountry is necessary to achieve that. The Second Water Supply, Urban III andUrban V projects demonstrated that well prepared, traditional project typeinterventions restricted to a few urban areas could help GOI improve deliveryof urban infrastructure services. The rationale for the proposed project isbased on this experience.

2.23 Improving the planning and regulatory framework. The Bank'sstrategy also promotes the establishment of an enabling regulatory andplanning framework for urban land management. A large technical assistanceprogram funded under a series of Bank loans has assisted the Government inimproving its mapping, land registration, tax administration and landmanagement in general. A national commission for land has now beenestablished and a key focus of the Bank's strategy will be to support theGovernment, under coordinated arrangements between urban and housing sectoroperations, in order to simplify its zoning and other regulations tofacilitate more efficient urban land use and, thereby, manage urban growthmore effectively.

2.24 Financing of urban development. Based on the Bank's experience thatlocal services are most effectively provided when responsibility andaccountability lies with competent local governments, Bank strategy aims atincreasing the importance of local government resources in financing urbaninfrastructure services. Therefore, the Bank supports measures that increaselocal revenues, especially the reform of the system of local government taxesand charges, and increase prudent borrowing by local governments. The systemof a multitude of local government taxec with very limited revenue base andyield should be overhauled. Also, local governments should be encouraged toestablish pricing policies on an increasingly cost recoverable basis, thereby

- 15 -

enabling available grants to be targeted to the neediest regions with lesspotential for local resource mobilization, thus supporting the Government'sregional equity objectives. If GOI's Repelita V strategy of increasing therelative importance of credit in the sector succeeds, it will help encouragemote efficient allocation of resources within the sector. However, aninterest rate which is well below market rates (currently 18 - 20 percentannually) maintains a degree of interest rate segmentation which could inhibitthe ability of the sector to mobilize loan funds from domestic savings in thelong-run. The Bank therefore supports a program geared to measured progresstowards market-related rates of lending to local governments and enterprises.

2.25 The Bank also recognizes that infrastructure deficiencies are largeand the financial capability of local governments is limited, so centralgovernment grants will continue to be an important source of financing forurban infrastructure. In order to avoid inefficiencies experienced in thepast, improvement of the grant system is desirable by making it lessfragmented and more equalizing, predictable and discretionary for therecipient local governments. The superior financial resources of the centralgovernment coupled with superior implementation capacity naturally led to theimportant role played by the grants-in-kind support. For the medium term, inview of the pressing urban infrastructure needs, there is no real alternativeto that solution. However, it is important to avoid the problems experiencedin the past by ensuring that (a) only those projects are implemented, whichhave a high priority for both the central and local governments and (b) thefinancial and institutional resources to operate and maintain theinfrastructure created are available at the local government level.

III. THE PROJECT

A. Project Origin and Formulation

3.1 Preparation of the Irian Jaya water supply component started inDecember 1983 financed partly by the Government of Australia and partly underLoan 2275-IND. Preparation of the Sulawesi urban component started in April1986 with funds from Loans 1653-IND and 1972-IND. The two preparation effortswere merged by GOI in June 1987, with agreement from the Bank. Furtherpreparation work was funded from Loan 2932-IND and the proceeds of ProjectPreparation Facility 142, requested by GOI and approved by the Bank inSeptember 1989.

3.2 In Irian Jaya, the project was prepared to cover kabupaten capitaa.cities only, while in Sulawesi the project was intended to cover all utrbanareaq and was prepared as a programmatic operation. However, difficultieswere encountered during preparation in Sulawesi which led to substantialdelays. It became apparent that the scope should be reduced and thepreparation should concentrate only on a selected number of cities in Sulawesiin order to use available resources effectively. Accordingly, the scope ofthe project was reduced to cover nine cities in Sulawesi in June 1989. TX.oselarger cities were selected, where the preparation reached an advanced stage.It became also clear that Sulawesi provincial and local gi. ernments were notready for a programmatic operation, i.e., the capability of local governments

t

i

- 16 -

to prepare second and third "batch* investments and provincial governments toappraise those investments was not satisfactory. Therefore a decision wasmade to redirect the preparation effort towards a one "batch" traditionalproject-type intervention. The list of the project cities can be found inAnnex 5.

3.3 Despite these reductions concerning Lh;e scope, the proposed projectis still quite large. The size also reflects GOI's intention to provide urbanservices to as many people as possible during the current five year planningperiod. In terms of previous water and urban operations in Indonesia (seeTable 1 above), the proposed project is equivalent to the combination of threeprojects: a water supply project covering fourteen water enterprises ir IrianJaya and Sulavesi (similar to East Java Water Supply - Loan No. 2275), anurban roads project in nine cities in Sulawesi (similar to Regional CitiesUrban Transport - Loan No. 2817) and an urban drainage, solid waste, kampungimprovement project also in nine cities in Sulawesi (similar to Urban V - LoanNo. 2408). Given the experience gained by government agencies under previousprojects and the advanced and detailed implementation arrangements (para. 3.4and Chapter IV), the project agencies should be able to implement the projectas designed. As for the Bank, while there are economies of scale inprocessing these components together, the size of the project will undoubtedlylead to a higher than average supervision workload (see para. 4.21 below).

3.4 By appraisal all feasibility studies and preliminary design workhave been completed. For water supply subprojects, detailed designs had beenprepared two years ago and have to be updated. Detailed design and tenderdocuments for first year implementation are under preparation and will beready by loan effectiveness. Contract packaging for all procurement has beencarried out and outline TORs for all technical assistance are available.

B. Project Objectives

3.5 Project objectives are (a) to provide urban infrastructure inselected cities in Sulawesi and Irian Jaya with emphasis on increased accessof households to water supply and sanitation services; (b) support improvedinfrastructure programming and financial planning in these cities, especiallysupport the development of local government capacity to prepare and executeannual O&M programs and (c) encourage local government and enterprise revenuegeneration and improve financial management.

C. Project Description

3.6 There would be three principal components:

(a) Infrastructure develoPment, rehabilita.ion and O&M in Sulawesi.This component represents Rp. 217.9 billion ($118.2 millionequivalent) or 70.0 percent of total project costs, providing civilworks and equipment for water supply, urban roads, kampung improve-ment, market infrastructure improvement, solid waste management,drainage and sanitation in nine cities in Sulawesi. Non-watersupply O&M expenditures of Rp 35.9 billion ($19.5 millionequivalent) and in-house design and construction supervision

- 17 -

overheads of Rp. 4.9 billion ($2.7 million equivalent) are alsoincluded in the component (but would not be financed by the Loan).

(b) Water supply system rehabilitation and development in Irian Jaya.This component r presents Rp. 51.7 billion ($28.0 millionequivalent) or :6.6 percetit of total project costs, pro-iding civilworks and equipment for the rehabilitation and expansion of eightpiped water supply systems in the kabupaten capital cities of IrianJaya.

ic) Technical Assistance. This component represents 13.4 percent oftotal project costs and would include the following sub-components:

(i) Project implementation support. This sub-component representsRp. 28.6 billion ($15.5 million equivalent) or 9.1 percent ofproject costs. The project would be implemented by existingagencies at central and local government level. In order toachieve project objectives, however, several of these agencieswill require assistance. The sub-component consists ofcontracted-out engineering services (design and constructionsupervision), project management, monitoring and evaluationassistance, including financial and environmental aspects.

(ii) Institution capacity building. This sub-component representsRp. 7.8 billion ($4.2 million equivalent) or 2.5 percent ofproject costs. It would provide consultant services for theimplementation of local government revenue improvement actionplans, revenue administration reforms and O&M managementsystems in nine cities in Sulawesi. It would also provideassistance to provincial level water enterprise support unitsand training to both local government and water enterprisestaff in the project cities in Sulawesi and Irian Jaya.

(iii) Project preparation. This sub-component represents Rp. 5.5billion ($3.0 million equivalent) or 1.8 percent of projectcosts and includes the repayment of the Rp. 2.8 billion ($1.5million) advance from the Project Preparation Facility (PPF-142) and the preparation of a follow-up urban developmentproject at an estimated cost of Rp. 2.7 billion ($1.5 millionequivalent). The follow-up project is intended to cover thoseurban areas in Sulawesi, which are not included under theproposed project. One part of the follow-up projectpreparation costs ($0.5 million equivalent) will finance urbanstrategy development for new, fast growing urban centers in theproject provinces.

D. ProJect Costs

3.7 The total project cost, as summarized in Table 2 below, is estimatedat Rp 311.5 billion ($168.9 million equivalent) including contingencies of Rp53.4 billion ($29.3 million equivalent), taxes and duties of Rp 17.7 billion($9.6 million fquivalent), and land acquisition of Rp 8.9 billion ($4.8

- 18 -

million equivalent). Direct and indirect foreign exchange costs are estimatedat Rp 126.7 billion ($68.7 million) or about 41 percent of total projectcostF. Base costs are estimated as of October 1990. Quantities have beenbased on completed preliminary designs and detailed designs where available.Latest contract information have been used to arrive at current unit costestimates. Physical contingencies for civil works and equipment are estimatedat 10 percent in Sulawesi and 15 percent in Irian Jaya; the latter because ofthe anticipated difficulties of implementing technical works i. the remotetowns of Irian Jaya. Price contingencies are estimated at 6.5 percent for1990 and 1991 and 6.0 percent thereafter for domestic costs and at 3.6 percentfor foreign costs throughout the implementation period. Price contingenciestotal Rp 31.9 billion ($17.3 million equivalent) or 11.4 percent of base costsplus physical contingencies. Interest during construction (IDC) on the BankLoan would be about Rp 35.6 billion ($19.3 million equivalent), of which Rp.31.7 billion is foreign cost (interest on the disbursed Loan amount during thegrace period) and Rp. 3.9 billion is domestic cost (due to the higher interestrate charged by the central government on the onlent portion). Land acquisi-tion costs are included in the base costs. Detailed cost estimates areprovided in Annex 1. Table 2 below summarizes project costs by component andsubcomponent.

- 19 -

Table 2: PROJECT COST SUMMARY

Rp billion _ million Z of

Local Foreign Total Local Foreign Total total

A. Infrastructure Sulawesi1. Water Supply 18.7 15.1 33.8 10.1 8.2 18.3 10.92. Drainage 23.9 14.0 37.9 13.0 7.6 20.6 12.2

3. Urban Roads 55.5 28.5 84.0 30.1 15.4 45.5 27.04. Solid Waste 6.6 3.8 10.4 3.6 2.1 5.7 3.3

5. Human Waste 2.7 1.6 4.3 1.5 0.8 2.3 1.4

6. Kampung Improvement 7.0 3.7 10.7 3.8 2.0 5.8 3.4

7. Market Infrastructure 0.6 0.3 0.9 0.3 0.2 0.5 0.3

Subtotal InfrastructureInvestment 115.0 67.0 182.0 62.4 36.3 98.7 58.5

8. Current O&M /a 11.6 5.3 16.9 6.3 2.9 9.2 5.4

9. Incremental O&M /a 12.0 7.0 19.0 6.5 3.8 10.3 6.1

Subtotal O&M 23.6 12.3 35.9 12.8 6.7 19.5 11.5

Subtotal Investmentand O&M 138.6 79.3 217.9 75.2 43.0 118.2 70.0

B. Water Supply Irian Jaya 20.5 31.2 51.7 11.1 16.9 28.0 16.6

C. Technical Assistance1. Project Implementation

Support 18.4 10.2 28.6 10.0 5.5 15.5 9.1

2. Institution CapacityBuilding 4.3 3.5 7.8 2.3 1.9 4.2 2.5

3. Project Preparation 3.0 2.5 5.5 1.6 1.4 3.0 1.8

Subtotal TechnicalAssistance 25.7 16.2 41.9 13.9 8.8 22.7 13.4

Total Project Cost 184.8 126.7 311.5 100.2 68.7 168.9 100.0

Interest During Construction 4.1 31.6 35.7 2.2 17.1 19.3

Total Financing Required 188.9 158.3 347.2 102.4 85.8 188.2

/a Non-water supply only

Base costs are in October 1990 prices.

- 20 -

E. Financing Plan

3.8 The proposed Bank loan of $100 million equivalent would finance59 percent of total project costs, or about 70 percent of the project cost netof identifiable taxes, duties, land acquisition costs and current O&Mexpenditures. The loan and a Japanese grant of $0.7 million equivalent wouldcover all foreign exchange costs estimated at $68.7 million equivalent andlocal costs of $32.0 million equivalent. Counterpart funding, excludinginterest during construction, would be provided by the central government($33.4 million equivalent), provincial governments ($10.4 million equivalent),local governments ($18.1 million equivalent), water enterprises ($5.1 millionequivalent) and private sector contributions [$1.2 million equivalent, (seepara 3.11)]. Annex 2 provides city by city details of the financing plan. Asummary of the financing plan is provided in Table 3. Assurances wereobtained during negotiations regarding timely provision of counterpart funds.

Table : PROJECT FINANCINIC PLAN SLf~RY(Rp billion)

Central 2caxrnmentP,Rivt Lonal° rop!ncl IR 5 Japan.es TotalPatp Loc. P,n,c,I ~ oest,c !m Domestic iBm &oetic Grant

Infrastructure

1. Water supply La 0.0 13,0 0.0 26.7 3.0 0.0 0.0 31.4 11.4 85.52. Drainage 0.0 3.0 2.3 0.3 0.0 2.9 1.5 21.0 6.8 37.93. Solid wast-e 0.0 0.2 0 0 6.7 0.8 01 0.0 1.9 0.6 10.44. Hu_n *aste 1.0 0.2 0.0 1.5 0.2 0.3 0.1 0.8 0.3 4.3i. Roads 1.2 2.2 6.2 10.9 1.3 22.0 8.3 24 2 7.8 8.1

R. Kamung iaronamnt 0.0 3.0 0.1 0.0 0.0 3.7 1.2 2.1 0.7 10.77. Market infrastructure 0.0 0.7 0.0 0.0 0.0 0.0 0.0. 0.1 0.0 0.9

Subtotal Investment . Zi L7 46.0 5 29.0 I" 2 LI LE 233.

H. Current 04 AM 0 0 9.7 5.1 0.0 0 0 0.0 2.7 0.0 1.5 19.09. Incremental 0 b 0.0 8.4 5.0 0.0 0.0 0.0 2.2 0.0 1.3 16.9

Subtotal Infrastructure 22 Q404 ILA 46 0I 2t0 81 SLI 3 269,7

Technical Assistanca 0.0 2.4 0.5 4.2 0.3 1.6 0.6 21.9 8.6 1.8 41,9

Total Proiect Cost La _ 4. 19i. 50 2 Li am IL.Z 103.4 39 1 LI 3116

Percent 0.7 13.7 6.2 16.1 1.8 9.8 5.4 33.2 12.5 0.6 100.0

Interest during construction 12.7 23.0 S5.7

Total Financing L/c 2-2 55 4 19 3 2 56 30A ILI 103I4 L.1 L_ 3472.

Local includes Rp 9.5 milllion user charges.Non-atr. supply only.Totals y not add up due a.e rounding.

3.9 Cofinancing. Cofinancing of Yen 103.6 million (Rp 1.4 billion or$0.74 million equivalent) has been provided by a grant of Japan forconsultancy services required during the final stages of project preparationand during the early years of project implementation. The grant agreement wassigned on February 26, 1991.

3.10 On-lending. Of the Bank loan of $100 million equivalent to thecentral goverrment, Rp. 23.5 and Rp. 26.7 billion ($12.7 and $14.5 millionequivalent or 27.2 percent) would be on-lent by the central government tolocal governments and their water enterprises, respectively, under domesticlending arrangements (DLAs) satisfactory to the Bank. Proceeds of the Bankloan would cover 90 percent of the funds borrowed by local governments andwater enterprises under the project. The amount of total borrowing was

- 21 -

determined on the basis of the willingness and capability of local governmentsand water enterprises to borrow. Central government would bear the foreignexchange risk and the risk of interest rate variation. The funds onlentthrough DLAs would carry an interest rate of 10.5 percent per annum over 20years including five years of grace. Interest and commitment charges would bepayable during the grace period. Interest during construction on onlent fundswould be Rp. 12.7 billion ($6.9 million equivalent), of which Rp. 8.7 billion($4.7 million) would be in foreign exchange.9/ The loans would mainlyfinance water supply, urban roads and solid waste management subprojects.Signing of a domestic lending arrangement acceptable to the Bank will be acondition of disbursement of onlent funds for each local government.

3.11 Regional Financing. About Rp. 64.3 billion ($34.8 millionequivalent) or 20.6 percent of the total project costs would be financed fromregional level resources. These resources include water enterprise charges toconsumers, second level regional government taxes, assigned revenues, servicecharges and other local revenues, contributions from the provincial governmentbudgets, and private sector-sourced funding (principally relating tocontributions of land and repayments to the proposed local small creditschemes for the financing of on-site sanitation infrastructure).

3.12 Central Government Non-Repayable Financing. Of the total centralnon-repayable financing of project costs, one part, Rp. 47.3 billion ($25.6million equivalent) consists of the formula driven and ad hoc developmentgrants (INPRES Dati I and II and INPRES Jalan) that provide cash supplementsto regional budgets. The other part, Rp. 142.5 billion ($77.2 millionequivalent), consists of central government development budget (APBN) funds,which can also be divided into two parts. One part, about Rp. 85.3 billion isfor infrastructure and technical assistance which is classified as centralgovernment responsibility. These are APBN DIP (national project) funds andwould be distinguished in practical terms by having central government staffas project managers (PIMPROs) and assistant managers (PIMBAGPROs) responsiblefor signing contracts. The other part, about Rp. 57.2 billion, is the grants-in-kind type of central contribution which supports regional governmentresponsibilities (see para. 1.9 above). These are APBN Daerah DIP(national/regional project) funds for which regional government staff wouldserve as project managers and/or assistant project managers. Of the totalnon-repayable (APBN and INPRES) financing of Rp. 189.8 billion ($102.9 millionequivalent), the Bank loan would finance 71 percent or Rp. 134.0 billion($72.6 million equivalent) and central GOI counterpart financing would provide21 percent or Rp. 55.8 billion ($30.2 million equivalent).

j.13 Rationale for grants-in-kind central government contribution. Thewater supply, drainage and road sub-sectors are the main beneficiaries of thecentral government's grants-in-kind support. Seven water supply subprojectsin Irian Jaya would be grant financed. Also, the rehabilitation component ofthe subproject in the provincial capital, Jayapura, would be financed from

9/ An additional Rp. 23.0 billion ($12.4 million equivalent) would be theinterest during construction on the balance of the Bank Loan, which wouldbe born by the central government.

- 22 -

grants, while system expansion would be financed from internally generated andborrowed funds. (All water supply subprojects in Sulawesi would be financedfrom internally generated and borrowed funds.) The beneficiary waterenterprises in Irian Jaya have been recently established, are still managed bythe central government and, with the exception of the Jayapura enterprise, arenot mature enough to borrow. The proposed investments are necessary toimprove the viability of these relatively small schemes. A timetable fortransferring the water enterprises to the local governments during the proiectimplementation period was agreed during negotiations.

3.14 The local governments in Sulawesi would borrow from the centralgovernment substantially more under the project than in the past. However,their revenue generation capacity to service debt is limited, while theinfrastructure deficiencies are large. As it was mentioned in para. 1.8above, there is an apparent conflict between the expenditure responsibilitiesand the taxing authority of the local governments. Property and road usertaxes have the potential to recover the cost of local government drainage androad improvements, but the maximum rate of the property tax is extremely lowand all road user taxes accrue to the central and provincial level ofgovernment. Therefore under this project (and for the medium term) the onlyway to finance even a modest program of infrastructure improvements in thedrainage and road subsectors is to continue to rely on central governmentresources. The extent of the grants-in-kind support in the non-water supplysubsectors was determined on the basis of the gap between the localgovernments ability to finance infrastructure investments (O&M was givenpriority in the use of local government resources) and the total cost of well-prepared, viable subprojects. In addition, a formula (based on city size)e' ermining the maximum share of grants-in-kind support from the central..overnment was also used.

IV. PROJECT IMPLEMENTATION

A. Responsibilities

4.1 Central Agencies. Coordination and guidance for the project wouldbe provided by The Urban Development Coordination Team (TKPP, composed ofdirector-general level officials), with the assistance of the IUIDPImplementation Management Group (IMG, composed of directorate-chief levelofficials) and its UNCHS-executed IUIDP Implementation Support Project(INS/89/014). BAPPENAS chairs TKPP and IMG, and is responsible for dailymanagement of INS/89/014. Key members of TKPP and IMG are MPW, MHA and MOF.

4.2 Overall responsibility for technical supervision and management ofthe proposed project in the central government would be assumed by DGCK (MPW),which would take the lead role in management of components and subcomponents

- 23 -

under its own specific responsibility (as would DGBM) 10/ and in ensuring(through TKPP and IMG) that other agencies at all levels perform their ownroles adequately. DGCK would be assisted in carrying out this responsibilityby the IMG-based INS/89/014 Project and by the DGCK-based Central ProjectManagement Office (CPMO) and Central Project Finance Office (CPFO).Established under earlier urban projects financed by the Bank and otherdonors, the CPMO would be responsible for monitoring all program andsubproject implementation and for arranging most technical assistance andtraining. The CPFO, similarly, was established under past projects and wouldbe responsible for oversight of all project accounting and auditing and formonitoring of Loan disbursement.

4.3 Regional Agencies. Provincial governments of Sulawesi would havedirect implementation responsibility for subprojects financed from INPRES Iand APBD I funds. The provincial planning agencies (BAPPEDA I) would assistlocal governments in preparation of funding requests, and monitor and evaluateoverall progress of project implementation in local governments. The projectin Irian Jaya will be managed by a Project Management Unit (PMU) under PPSAB(the central government water supply project implementation agency underDGCK).

4.4 Local Agencies in Sulawesi. Coordination and guidance would beprovided by BAPPEDA II. reporting to the bupati for kabupaten districts orwalikota for kotamadya cities. Project Management Offices (PMOs) would beestablished in local governments under BAPPEDA II and headed by a seniorBAPPEDA II officer. Project Finance Offices (PFOs) would also be establishedin each local government, usually in association with the Finance Division.Each PMO and PFO would include a local consultant shared with neighboringlocal governments and could include seconded regular staff of the concernedlocal agencies (DISPENDA II, Bagian Keuangan II, etc). Most APBD II projectmanagers (PIMPROS) would be local Dinas PU (DPUK) staff.

4.5 Local Agencies in Irian Jaya. Project implementation units in theeight cities would be formed from water company and PPSAB staff and wouldreport to the PMU in the PPSAB office.

4.6 Summary. Implementation arrangements are summarized in Table 4below. The responsibilities for implementing components and subcomponents ofthe proposed project are in general assigned to different agencies and levelsof government according to current GOI policies and practices, which providefor increasing local participation. No new structural entities would berequired, though several would be strengthened under the project. Key staffto the central and local Project Management, Implementation and FinanceOffices and Units were appointed at the beginning of FY 92. A more detaileddescription of responsibilities by project component is provided in Annex 4.

10/ DGCK and DGBM would be responsible for direct implementation of centralgovernment infrastructure investments in addition to being responsiblefor oversight and supervision of all infrastructure expenditures,including that implemented by the regional governments.

- 24 -

Confirmation of implementation responsibilities of participating agencies wasobtained at negotiations.

Table 4: IMPLEMENTATION RESPONSIBILITIES

Central Government Local GovernmentMPW MOF MHA PDAM/

TKPP DGCK A DCGM PUOD A OAPPEDA DPUP PPSA8 BAPPEDA PFO DPUK BPAMResponsibility A IMG DGBM DOB BANGDA TK I (PMU) TK II (PMO)

Overall Coord.and Guidance X

Overall Tech. Supervisionand Management X

Overall Project Monitoringand Reporting X

Overall Financial Mgt.(Special Account andonlending) X

Overall Institution andand Human Resource Dev't X

Project Completion Report X X X X X X

Sulawesi Com onentTm plemntation ofinfrastructure investments X X X

Vajor Consultant Selectionand ICB Procuremnt X X

Specialisod Support (tech,financial A training) X

Expenditure Programs andAnnual Budgets X X X

Coordination andSupervision X X X

Procuroment of Goods, Worksand Local Consultants X X X X

Supervision, Certification AProgress Reporting X X X

Oisbursement andreimbursement requests X X X

Project and annual accountsfinancial progress reporting X X X

Irian Jaxa ComponentWatershed Manangment X XBPAM - PDAM Conversion X X X XMajor Consult. Selection AIC8 Procurement X

Implement. Mgt. ACoord./Support to PIUs X

Packaged LCB GoodsProcurement X

Project Implementation,Procuremnt of Works ALocal Consultants X

Supervision of Works, Certifi-cation and Progress Reports X X

Budget and Annual Accounts X XDisbursement and

reimburosmnt requests X X X

- 25 -

B. Project Implementation Agreements

4.7 While all authorities required for successful implementation of theproposed project are already held by existing structural agencies and eachlevel of government, Project Implementation Agreements (PIAs) were preparedand will be signed for each of the nine cities in Sulawesi to confirmessential understandings and commitments based upon preparation documentation.The PIAs have five attachments:

- Attachment I presents the multi-year project and the financial plan;

- Attachment II lists the specific subprojects to be implemented;

- Attachment III describes the identified revenue improvement actionsand the local government commitment to implement the revenueadministration reform system (MAPATDA);

- Attachment IV describes institutional development actions in waterenterprises and local governments and the commitment to implementthe new O&M management system (POMMS);

- Attachment V lists actions and procedures to be followed duringimplementation in order to ensure that the project has a positiveenvironmental impact.

PIAs specify that substantial changes in the local government expenditureprograms (revision of subprojects costing more than US$1.1 million equivalent)will be made with prior Bank consultation. PIAs for the nine localgovernments were finalized at negotiations. PIAs acceptable to the Bank wouldbe signed as a condition of disbursement for the concerned local governments.

C. Implementation Schedule

4.8 Project implementation is expected to commence in July, 1991, andwould be completed over a five year period. The proposed disbursement periodof five and a half years is shorter than the disbursement profile for theurban sector in Indonesia, and is adopted for the following reasons. Theproposed loan includes no new or complex kinds of sub,rojects and is notappreciably larger in real terms than programs that have already beenimplemented in the same provinces. The technical teams at the local levelwhich will be responsible for implementation were fully involved during thepreparation phase. Land acquisition recquirements are minor and unlikely tocause delays. There is no national level technical assistance in the projectwhich in the past tended to lengthen the loan disbursement period. Also,while earlier it was standard practice in Indonesia to prepare detailed designafter loan effectiveness, under this project detailed designs and biddingdocuments for the first year subprojects will be completed before loaneffectiveness with funding from the Japanese Grant Facility. Theimplementation schedule is attached as Annex 4A.

- 26 -

D. Procurement

4.9 Civil Works. The estimated total value of civil works to beprocured for this project is about $96 million equivalent includingcontingencies. Contracts will be spread over 17 project towns in Sulawesi andIrian Jaya, covering up to seven subsectors of urban infrastructure andspanning over a five-year implementation period. The resulting, relativelyminor works are not suitable for packaging into contracts larger than about $1million equivalent. Approximately 800 separate contracts are expected to beawarded ranging in value from about $25,000 to $900,000. These contracts areunlikely to be of interest to large, international contractors; localcompetitive bidding (LCB) procedures acceptable to the Bank would be used forprocurement. Acceptable LCB procedures have been developed and applied duringthe implementation of the Urban V (Ln. 2408-IND) in Ujung Pandang and localcontractors have proven to be capable of carrying out the works.Approximately $2.3 million equivalent worth of civil works would be executedby force account (direct labor) mainly using water enterprise staff fornetwork rehabilitation and installation of service connections.

4.10 Goods. Approximately $36 million equivalent worth of materials andequipment would be procured for this project. To the extent possible, theprocurement of goods would be grouped into packages larger than $200,000 to besuitable for international competitive bidding (ICB). Pipes and mechanicaland electrical equipment for water supply systems and facilities, about $19million equivalent, would be procured using ICB procedures in accordance withBank guidelines. Local suppliers in Indonesia are expected to compete for ICBcontracts and, in bid comparison with fureign bidders, will be granted amargin of preference equal to 15 percent of the CIF price of imported goods orthe actual custom duties and import taxes, whichever is less. Supplycontracts for various materials and equipment valued at less than $200,000equivalent would be awarded through LCB procedures acceptable to the Bank upto an aggregate limit of $12.7 million. Miscellaneous minor goods costingless than $50,000 per contract and up to an aggregate limit of $700,000 wouldbe procured through local or international shopping.

4.11 Procurement of consultants services and technical assistance wouldbe carried out in accordance with the Guidelines for the Use of Consultants byWorld Bank Borrowers.

4.12 Procurement Review. Bidding documents and bid awards for all civilworks contracts larger than $0.5 million and for all goods supply contractslarger than $200,000 equivalent (representing about 60 percent of the totalvalue of procurement) would be subject to prior review by the Bank. Thisreview limit is thought to be appropriate because there are numerous groups ofcontracts of similar nature. The first set of documents for each type ofprocurement (e.g., road works, drainage construction, pipe supply, etc.) willbe reviewed by the Bank. The balance of contracts would be subject toselective post-review by Bank staff. The procurement arrangements aresummarized in Table 5. Details of the proposed contract packaging are givenin Annex 4C.

- 27 -

Table 5: PROCUREMENT ARRANGEMENTS(all amounts in $ million)

Procurement Procedure /aExpenditure Category ICB LCB Other lb N.A./c Total

Civil works - 74.1 2.3 19.8 96.2(55.4) (1.1) (0.0) (56.5)

Goods /d 19.2 15.7 0.7 - 35.6(15.8) (12.0) (0.5) (28.3)

Consulting services, technical - - 22.0 0.7 22.7

assistance and training (15.2) (0.0) (15.2)

Land, taxes and duties - - - 14.4 14.4(0.0) (0.0)

Total 19.2 89.8 25.0 34.9 168.9(15.8) (67.4) (16.8) (0.0) (100.0)

/a Figures in parentheses are the amounts financed from Bank loan./b Includes force account (direct laboc) work, local/international shopping,

selection of consultants following Bank guidelines and repayment of PPFadvance.

/c Includes expenditures for O&M activities and $0.7 million TA cofinanced bythe Japanese Grant Facility.

Id Includes $2.5 million in respect of vehicle purchases against which IBRDwill not disburse.

E. Disbursement

4.13 Proceeds of the loan which would finance about 59.2 percent of thetotal project cost, would be disbursed as follows:

(a) under DLA funded expenditures of local governments and their waterenterprises 90 percent of expenditures;

(b) under central government (APBN and INPRES) funded expenditures (i)85 percent of expenditures for civil works by contract; (ii)60 percent of expenditures for civil works under force account(water system rehabilitation and service connections) on the basisof fixed unit rates for these works; (iii) 100 percent of foreign(CIF) costs of directly imported goods, 100 percent of ex-factorycosts (net of taxes) of locally manufactured goods and 65 percent ofthe costs of all other locally procured goods; (iv) 100 percent ofnet-of-tax expenditures for consultancy services.

- 28 -

No disbursements would be made for land acquisition, project overheads,operation and maintenance.

4.14 Direct payments. In appropriate circumstances contractors requiringpayment in foreign currency can be paid through ,BRD direct paymentprocedures. Such payments would be made on the application of implementingagencies against contracts involving foreign currency paymenits and are subjectto a minimum of $50,000 equivalent per application.

4.15 Special Account. Except in the case where paymentb are made throughdirect payment procedures (see above), the IBRD loan proceeds would bedisbursed through a Special Account established by MOF's DG Budget at BankIndonesia (BI). This Special Account would be maintained in US dollars withan initial deposit of $3 million from IBRD equal to anticipated ave7.gedisbursements over a four month period. Upon request by GOI, replenishment ofthe Special Account would be made quarterly or when the balance reaches50 percent of the initial deposit amount, whichever occurs earlier. Drawingsfrom t1 e Special Account would directly meet contract payments under 4.13. (b)above. Disbursements for subloans to local governments and enterprises wouldbe made through an account of MOF's DG Monetary Affairs (DGM) in BankIndonesia, the Rekening Pembangunan Daerah, which has already financed anumber of domestic loans and has access to sufficient domestically-sourcedfunds to prefinance a tranche of loan advances to be deposited with designatedlocal banks for use by the borrowers (local governments and enterprises) formaking eligible payments on subprojects. Through the Special Account,reimbursement would be made for the advances on the basis of appropriatedocumentation for actual payments made by local borrowers from the advances.

4.16 Disbursements for civil works contracts and force account valuedless than $500,000 equivalent and goods supply contracts with a value of lessthan $200,000 equivalent would be on the basis of Statements of Expenditures(SOEs). Detailed supporting documentation would be re>tained by MOF'sDirectoratc of Budget Administration (TUA) and implementing agencies, and bemade available for review by IBRD on request. All other disbursements forcivil works would be made on the basis of supporting documentation (a) paymentorders issued by the State Treasury offices or by local banks administeringprojects; (b) certificates of work performance issued by implementingagencies; and (c) "No Objection" letter from IBRD regarding the award of thecontract. Documentation in support of contracts requiring direct paymentswould be sent to IBRD. The disbursement schedule is attached in Annex 4D.

4.17 Retroactive financing. Retroactive financing of not more than $1million (one percent of the Loan amount) would be provided for financing ofexpenditures for works, goods and services incurred after March 31, 1991 (thebeginning of GOI's 1991/92 fiscal year). In order to meet eligibilitycriteria for disbursement under retroactive finarcing, implementing agencieswould be required to conform to Bank procurement guidelines and to maintainadequate records and accounts.

- 29 -

F. Project Accounts and Audits

4.18 Arrangements would be required: (a) to prepare regular consolidatedstatements of expenditure by financing source for the whole project (projectmemorandum accounts) as a basis for financial monitoring and for financialaudits; and (b) to collect documentation and prepare reimbursementapplications.

4.19 At the local level in Sulawesi, Project Finance Offices (PFOs) willbe set up which will maintain complete and accurate records of all projectrelated expenditures financed by all sources of funds for all projectcomponents including those of the water enterprises. These will be submittedannually for audit by the State Audit Board (BPKP) oi each province.

4.20 At the central level, the Central Project Finance Office (CPFO) willprepare project accounts of all components implemented directly by the centralagencies, including all water supply projects in Irian Jaya. CPFO will alsobe responsible for consolidating quarterly project accounts from the PFOs andsubmitting them annually for consolidated audit purposes by the BPKP CentralOffice. CPFO will also coordinate statements-of-expenditure (SOE) and SpecialAccount audits with the Directorate General for the Budget, Bank Indonesia andthe State Audit Boards's Central Office. The combined audit report will besubmitted to the Bank for review no later than nine months after the end ofGOI's fiscal year. Assurances and confirmation of accounting and auditingarrangements were obtained at negotiations.

G. Project Reporting, Monitoring and Bank Supervision

4.21 The Central Project Management Office (CPMO) would be responsiblefor preparation of quarterly progress reports covering all project componentsimplemented, including institutional development and municipal managementimprovement. These qaarterly reports would include sunmaries of progress atthe local level prepared by the local Project Management Offices (PMOs) inSulawesi, and by the Project Management Unit (PMU) in Irian Jaya 411.A submittedto DGCK/CPMO not later than one month following completion of the quarterconcerned. CPMO would submit the overall progress report to TKPP, BAPPENAS,MHA, MOF, MPW and the Bank not later than two months following completion ofthe quarter concerned. In addition, annual progress reports would cover (a)conformity of annual budget allocation with the expenditure programs theproject is based on; (b) conformity of actual expenditures (including O&M)with budget allocations; (c) environmental management plan implementation andresults of environmental monitoring; (d) achievement of water enterprise andlocal government financial and revenue improvement targets. These repertswould form the basis for monitoring of progress. Upon completion of theproject, a Project Completion Report will be prepared by CPMO for submissionto GOI and the Bank. Categories of key implementation and reportingindicators and responsibilities for their reporting are summarized in Annex4E. Assarances and confirmation of reporting and monitoring arrangements wereobtained at negotiations.

4.22 Bank Supervision Plan. In view of the project's scope and location,it would be prudent to plan on an intensive level of supervision of about 20

- 30 -

staff weeks per year for the first two years of project implementation andabout 15 staff weeks per year after that. Supervision missions would bescheduled on a semi-annual basis, one in mid-year and the other aroundNovember. Only the November mission would include extensive field visits.The mid-year missions would consist of a municipal engineer, a water supplyengineer and a financial analyst/economist, the November mission would alsoinclude an environmentalist. The mid-year 1994 mission woultd most likely bedesignated as a mid-term review of the project that would, in addition tocarrying out normal supervision tasks, have the primary objective of workingwith GOI to formulate a project completion plan. Detailed supervision plancan be found in Annex 4F.

H. Operations and Maintenance

4.23 The project includes O&M in the non-water supply sub-sectors. O&Mwill be the responsibility of local governments. Expenditures are clearlydistinguished between current O&M (e.g., level of current expenditure for O&Hof existing facilities and services in the subsector) and incremental O&Mdefined as the agreed additional expenditures to (a) improve O&M of existtngfacilities or services, and (b) initiate necessary O&M for new andrehabilitated infrastructure and services developed during the implementationperiod of the proposed project. These additional O&M expenditures, with theassociated local capacities to execute improved O&M, represent one of the mostimportant project implementation targets. Assistance will be provided underthe Loan to install in all local governments a simplified version of thePerformance-based Operations and Maintenance Management System (POMMS),developed for large cities under Urban V and USL, and to strengthen thecapacity of the existing PMDUs (created with USL assistance) and to set up anew PMDU in Irian Jaya to advise and assist local water enterprises to improveO&M performance in that subsector. O&M expenditures would also be monitoredby CPMO for review by semi-annual Bank supervision missions and detailedphysical assessment in the mid-term review. Detailed O&M arrangements forSulawesi are described in Annex 4G.

V. FINANCIAL ASPECTS

A. Local Governments

5.1 Central Grant Dependency. Most Indonesian local governments,including all the nine in Sulawesi included in the project, are dependent oncentral grants for the bulk of their revenues. Even in the largest projectcity, Ujung Pandang, central routine and development grants in recent yearsrepresented two third of total revenues. Grant dependency is high both fordevelopment expenditures and for financing routine administration, operationaland mairtenance needs (see Annex 9). It is expected that, at least in thenext five to six years, local governments will continue to receive substantialgrant funding from the central government.

5.2 Non-grant Revenues. Local governments' main non-grant revenuesources fall into three categories: local government taxes; local service

- 31 -

charges; and assigned central government revenue, principally the PBB(property tax). In most of the local governments half of non-grant revenuescomes from service charges. In Ujung Pandang, Manado and Gorontalo, localtaxes are the second most important revenue source, representing approximately3w percent of total non-grant revenues. Property tax receipts are moreimportant and represent 30 to 40 percenv of revenues in the other citie., butonly 10 to 20 percent in Ujung Pandang, Manado and Gorontalo.

5.3 Growth in non-grant revenue has been fairly good overall in recentyears. Analysis over the 1983/84 to 1989/90 period indicates an overallaverage growth rate of about 15 to 20 percent annually in nominal terms orabout 8 to 13 percent in real terms (see Annex 9). Within these aggregatedfigures growth rates for the property tax were generally higher and for localtaxes lower. There were surprisingly little variations from local governmentto local government. Future non-grant revenue forecasts prepared under theproject predict overall average real growth similar to the one in the recentpast

5.4 Borrowing. Local governments, apart from their older enterprises,have not on the whole made great use of borrowing in the financing of capitalprojects. Five have borrowed only for market construction under the centralgovernment's heavily subsidized INPRES Pasar program, which has beendisbanded. The only exception is Ujung Pandang, which has borrowedsubstantial sums in recent years under the Urban III and V projects withinterest rates of 7.25 and 10.25 percent, respectively, and also from BankPembangunan Daerah (a government bank for regional development) and the INPRESPasar program with no interest charged.

5.5 Until recently local governments were required to restrict thelevels of their borrowing by the "debt service ratio" criterion broadlydefined as the ratio of total loan charges payable in a year to total revenuesavailable for development in that year. However, the application of thatcriterion has been unclear and open to varying interpretations. The maximumpermitted ratio was prescribed at 15 percent, which, on the stricterinterpretations of how to define the ratio, was very conservative. Confusionabout the former criterion may have been a contributory factor in localgovernments past reluctance to borrow in any substantial way. GO' has nowdecided to replace it with one based on a more closely defined minimum "debtservice coverage rat4 i" (DSCR). This has been stipulated for any given yearas:

(projected non-grant and local revenues for the year in question lessprojected routine account expenditure on staff, administration andoperat'onal and everyday maintenance needs) + (total estimated loancharge obligations arising in that year from currently outstanding loansand future proposed borrowing).

5.6 The minimum value of the DSCR ratio has been set at 1.5 by GOI forborrowing by local governments. Estimates of maximum borrowing capacity foreach of the local governments in the project have been prepared by makingforward projections of the elements in the above formula for the programperiod and for a number of years following sufficient to establish a clear

- 32 -

trend indicating that the minimum ratio will be safely achieved. The totalcapacities are small, however, and some local governments have indicated apreference to finance their investment directly. All local governments, withthe exception of Kendari, have nevertheless made commitments to borrow atleast smail amounts after consultation with central and provincial officials.Giveii the low use of borrowing in the past, the newness of the debt servicecoverage ratio criterion, and the likelihood that regional governments willhave to finance development expenditures in a number of sectors not covered bythe project from their own resources, the local government proposals cangenerally be regarded as satisfactory. Assurances and confirmations wereobtained at negotiations that local governments eligible for borrowing underthis project will maintain minimum debt service coverage ratios of 1.5.

5.7 Local Revenue Adiinistration. Although annual growth in localrevenues has generally been steady, studies undertaken during preparation ofthe revenue projections provide evidence that current levels of major revenuesources are considerably below their real potentials. Deficiencies are oftenfound in local government administration which lead to under-assessment andunder-collection of tax revenues. The project seeks to address thesedeficiencies by continuing to support on-going efforts which were initiatedunder previous Bank loans and to expand the scope of the work as describedbelow.

5.8 Revenue improvement and related institutional actions preparedduring the project preparation phase, and to be refined during projectimplementation, seek to identify practical steps needed to achieveimprovements in the planning and administration of local taxes and servicecharges. Such steps typically include collection of data on the revenue basesincluding proper identification of tax objects and tax subjects, analyses ofrevenue potentials, review of tariffs, and establishment of annual revenuetargets representing a progressive narrowing of the gap between performanceand identified potentials. As specified under the Project ImplementationAgreements, local governments will comnit themselves to implementing thesewith technical assistance provided under the project. In this connection, theproject will provide further support to the reform effort of the localgovernment revenue departments (DISPENDA). The MAPATDA reform program 11/initiated under Urban V project, was first introduced and tested in sixcities, then expanded to 100 other cities, and is now in the process ofnationwide implementation. The proposed project would complete theimplementation process in the nine Sulawesi local governments.

11/ The main highlights of MAPATDA include a reorganization of the localgovernment revenue department (DISPENDA) to reorient the focus ontaxpayer information, an important stage of the tax administrationprocess (e.g., assessment, billing, collaction) in contrast to theexisting structure where the focus is on the tax type which does not puttaxpayer records in one field. The new system will centralize personalrecord6 for each identified taxpayer and provide a complete assessment oftaxpayer's liabilities from all kinds of taxes.

- 33 -

B. Water Enterprises

5.9 There are fourteen water enterprises under this project, six inSulawesi and eight in Irian Jayal2/. Three enterprises in Sulawesi arePDAMs (Manado, Bitung and Palu), but all the others are still BPAMs. ThePDAMs are owned and operated by their respective local governments, while the

BPAMs are operated on a temporary arrangement under the Ministry of PublicWorks. The more mature three Sulawesi BPAMs (Gorontalo, Luwu, Bone) arescheduled to become PDAMs during the current calendar year. The BPAMs inIrian Jaya would become PDAMs during project implementation.

5.10 Financial Performance. All PDAMs and BPAMs are required to prepareannual financial reports which are audited by the State Audit Board (BPKP).Income statements for the past years are presented in Annex 8 (except for thejust established BPAMs in Wamena and Serui in Irian Jaya). While allenterprises were able to cover their O&M expenses (some only in the lastyear), only six were able to achieve operating surpluses after depreciation.Substantial net income (after tax) was generated in Manado only. None of thewater enterprises has notable experience with long term borrowing.

5.11 Water Enterprises Management. Key managerial and skilled/technicalpersonnel are lacking, particularly in the areas of financial accounting,billing and collection, inventory control, O&M and construction management.The prospects of making improvement through recruitment appear to be bleak, asbetter job opportunities and employment incentives elsewhere make it difficultin most cases for WEs to attract fully qualified staff. Provincial Monitoringand Development Units (PMDUs) modeled on the successful experience in EastJava were set up in Sulawesi 'o provide technical and managerial services tothe PDAMs to help fill these gaps. In Irian Jaya, the same kind of servicesto the BPAMs are presently provided by PPSAB, the water supply projectimplementation unit of the provincial office (KANWIL) of MPW. During projectimplementation, however, the water enterprises will be turned over to thelocal governments (i.e., will become PDAMs) and PPSAB assistance will bephased out. Therefore, under the proposed project, technical assistance willbe extended to strengthen the existing PMDU in Sulawesi and to establish asimilar PMDU in Irian Jaya. Assurances were obtained during negotiations thatproperly staffed and organized PMDUs for the principal purpose of providingtechnical and managerial services to PDAMs will be established in Irian Jaya

by July 1, 1992.

12/ The Ujung Pandang, Kendari and Pare Pare water enterprises are notincluded in the project. Ujung Pandang is already implementing a multi-year project financed under a loan from Japan. A fully preparedsubproject for PDAM Kendari had to be dropped because the localgovernment decided against borrowing. PDAM Pare Pare has large arrearsin the repayment of a loan it received under the Second Water SupplyProject.

- 34 -

5.12 Financial Projections. Financial projections for each waterenterprise have been prepared based on several assumptions, of which the keyones include: (a) existing and new water connections; (b) average consumptionper connection based on tariff levels, real income of consumers, priceelasticity of -0.2 and income elasticity of 0.6; (c) assumed water tariffrates; (d) increasing water sales resulting from new connections ar-d reducedunaccounted-for-water (UFW); (e) rates of inflation for local and foreigncosts; and (f) a financing plan, investment levels and operating parameters.The projection exercise involved income statements, sources and applicationsof funds, balance sheets, financing plans, and monitoring indicators.Projected income statements for each enterprise, including real tariffincreases ranging from zero to one hundred percent, are provided in Annex 8.

5.13 It is expected that seven water enterprises, six in Sulawesi and onein Irian Jaya, will borrow Rp. 29.7 billion ($lC.l million equivalent) underthe proposed project, of which Rp. 26.7 billion would be financed under theBank loan. Among these, the Jayapura water enterprise will also receive agrant to finance the rehabilitation of the water supply system. Otherenterprises in Irian Jaya, which are not mature enough to borrow, will receivegrants only. Assurances were obtained during negotiations that:

(a) all PDAMs will maintain a maximum debt-equity ratio of 70/30 and aminimum debt service coverage ratio (DSCR) of 1.3 (the Jayapuraenterprise 1.5) on a three-year rolling average during the projectimplementation period;

(b) all water enterprises (including BPAMs) will maintain revenues whichcover at least O&M costs during the first three years of projectimplamentation and both O&M costs and depreciation after that;

(c) to meet the above financial performance criteria, all waterenterprises will adjust their tariffs, starting with April 1, 1992and thereafter on January 1, 1994 and January 1, 1996, afterreviewing the adequacy of their tariffs and furnishing a copy ofthese reviews to the Bank.

VI. PROJECT JUSTIFICATION AND RISKS

A. Project Beneficiaries and Poverty Impact

6.1 In Sulawesi, the whole urban population in the project cities (about1.5 million people) would benefit from the urban road and drainage improvementcomponent of the project. About 250,000 people would directly benefit fromkampung improvements. About 900,000 people live in those areas which would beserved by the solid waste management component. About 157,000 people wouldreceive house connections to the water supply systems and 34,000 would beserved by the newly constructed 430 public water taps. In addition, 240,000already connected people would benefit from improved service (24 hour supplyand better water quality). In Irian Jaya, about 133,000 people would receivehouse connections and 56,000 would be served by 560 public taps. The 150,000

- 35 -

already connected people would also benefit from improved water supply service(currently none of the systems in Irian Jaya operate on a 24 hour basis).

6.2 According to the Indonesia Poverty Assessment and Strategy Report(Report No. 8034-IND), 28.4 percent of the urban population in the EasternIslands of Indonesia lived in poverty in 1987. Drainage, kampung improvementand public water tap construction under the proposed project would beespecially beneficial for this populatior in Sulawesi and Irian Jaya.Experience has shown that it is mainly the urban poor who are affected byfrequent flooding, because they must settle in the most marginal, low-lyingareas or along drains and river banks that often overflow. These serviceswould be provided under the proposed project as freestanding drainagesubprojects and as part of the nation-wide kampung improvement program (KIP)for upgrading informal, unplanned and unserviced urban settlements,particularly with low-income residents. Public taps would provide safe waterthat is readily accessible to poor families lacking house connections andliving in water-stressed areas. Easily accessible, low-cost drinking watercan substantially improve the life of these people.

6.3 The proposed project strengthens local participation in the projectcycle. Beneficiary households and communities are involved in theidentification, preparation and implementation of neighborhood (kampung) andmarket improvement programs (KIP and MIIP). Similar local involvementcontinues for solid waste management and sanitation programs, which alsoemphasize household financing and the use of community groups. Water supply,drainage and road investment programs emphasize increasing participation ofcommunity groups in program and subproject planning, and local governmentresponsibility for O&M are stressed.

6.4 Large numbers of women will benefit from the project. Particularlyimproved access to and quality of water supply and better environmentalsanitation resulting from the solid waste management, low-cost sanitation anddrainage programs will provide important benefits to several thousands ofwomen and children. Women play an important role in those community groupsand organizations, which will participate in the implementation of low-costsanitation and kampung improvement programs and other investments directlyaffecting their neighborhoods.

B. Economic Analysis

6.5 Since the project covers seven sectors of urban infrastructureservices (water supply, drainage, human waste management, solid wastemanagement, road improvement, kampung improvement, marketplace infrastructureimprovement) and a large number of urbar areas, it was necessary to develop astructured approach to economic analysir. Subprojects were classifiedaccording to investment costs, i.e. small (less than Rp 400 million inconstant 1990 prices), medium (Rp 400 million to Rp 2 billion) and large (overRp 2 billion). A subproject was defined as a logical unit of investment inone of the subsectors which must be implemented as one activity to obtain theplanned benefits. Economic viability of small subprojects, provided thatthese adhere to agreed planning and design criteria, was presumed. Mediumsize subprojects were subject to a simplified economic analysis. Large

- 36 -

subprojects had to go through a more detailed analysis and the appliedassumptions and methodology was subject to a Bank review on a case by casebasis.

6.6 Economic rate of return (ERR) or net present value (NPV)calculations were required for medium and large subprojects in the watersupply, road and drainage sectors. Quantification of economic benefits wasbased on (a) consumers' willingness to pay for water supply (the methodologyis described in Annex 7); (b) expected savings in vehicle operation costs andtime savings for road improvements; and (c) either avoided flood damage orincrease in land values plus reduction in the expected level of roadmaintenance costs for drainage improvements. An ERR of 10 percent was used asthe cut-off rate.

6.7 Economic benefit of human and solid waste management and kampungimprovement subprojects was not quantified. Both the human and solid wastemanagement subprojects represent least cost solutions to the problem ofproviding a basic level of service that was adapted to local needs andtraditions. Economic viability of similar kampung improvement activities wasdemonstrated under a series of World Bank assisted projects in Indonesia.

6.8 During preparation, all identified subprojects were analyzed ac-cording to these criteria. Some water supply subprojects proved to be non-economic and were substantially modified or eliminated from the project. ERRsor NPVs of identified road and drainage improvements were calculated in eachkabupaten and, within the constraints set by fund availability and localgovernment implementation capacity, the most attractive ones were proposed forimplementation. A large majority of the subprojects fell into the 10 to15 percent ERR range. Due to very high traffic densities, several roadimprovements had an estimated ERR of 25 percent or more.

C. Environmental Impact

6.9 The project is expected to have a positive overall impact on theenvironment. It would reduce the noni-sanitary disposal of human and solidwaste and decrease flooding. Environmental screening and preliminaryenvironmental assessment have been carried out in accordance with GOIprocedures, which are satisfactory to the Bank. More detailed environmentalassessments (called ANDALs in Indonesia) were recommended for a fewsubprojects and those will be carried out during April - June 1991, financedfrom the Japanese grant. The potential negative impacts are the following:(a) overabstraction of river water for the piped systems causing waterresource utilization conflicts; (b) air and water pollution at the final solidand human waste disposal sites; (c) soil pollution caused by sediments removedfrom drains; (d) resettlement in Ujung Pandang, Sulawesi, due to widening of aroad (there is no resettlement expected in Irian Jaya).

6.10 Environmental management and monitoring plans (RKLs and RPLs,respectively) have been prepared which prescribe strategies and measures tominimize the negative environmental impacts during implementation. Thedetailed design revisions, also financed from the Japanese Grant, will ensurethat mitigatory measures are included in the final design. The local

- 3 7 -

government in Ujung Pandang prepared a resettlement plan which was reviewed bythe Bank during negotiations and was found acceptable. Local governmentswould agree to follow the RKLs by signing the Project ImplementationAgreements (PIAs). Attachment V of the PIAs lists the environmentallysensitive subprojects for each local government and, on the basis of theRKL/RPL, specifies actions to be taken during implementation. The PIAs wouldbe legally binding documents and the Bank would have the option to suspenddisbursement to a particular local government if those actions were not taken.Physical contingencies include funds available for additional mitigation worksif found necessary through environmental montoring. As described among themonitoring arrangements, CPMO would prepar nnually a report on thecompliance of actual implementation with the RKLs (see para. 4.20).

6.'1 The Irian Jaya water supply subprojects would rely on surface andgroundwater sources which are of very good quality. Some sources would beabstracted for the first time while others have been used for several years.Uncontrolled development in the water catchment area of these sources couldcause deterioration of water quality and reduction of natural water discharge.Therefore control needs to be exercised over land use (urban, industrial,agricultural development), illegal activities (logging and slash-and-burnfarming) and infrastructure development in the catchment areas. In order toachieve effective administration, planning and protection of water catchments,a decree by the Governor of Irian Jaya (SK Governor) was issued which defines:(a) responsibilities of central, provincial and local agencies; (b)organisation of watershed management committees to be formed in each of theeight kabupatens; (c) specific watershed management activities to form thebasis of a management plan; (d) identification of the area to be included inthe watershed mnanagement activities (see Annex 10 for further details).

D. Risks

6.12 The chief risk is that the pace of institutional development is hardto predict and may not be substantial during the period of projectimplementation. This risk is difficult to avoid, since, in view of theabsorptive capacity of local governments in East Indonesia, the institutionalcapacity building effort under the project has to be limited. However, thepriority given to implementation assistance and O&M capacity building and tothe availability of adequate resources to finance O&M expenses should ensurethat the flow of benefits from the implemented physical investments will besustained.

VII. AGREEMENTS REACHED AND RECOMMENDATION

7.1 During negotiations, assurances and confirmations were obtained fromGOI on the following principal points:

(a) timely provision of counterpart funds (para. 3.8);

(b) BPAM/PDAM conversion schedule (para. 3.13);

- 38 -

(c) project implementation responsibilities of participating agencies(para. 4.6)

(d) establishment and maintenance of arrangements for: (i) procurement(paras. 4.9 to 4.12); (i') accounts and audits (paras. 4.18 to4.20); and (iii) reporting and monitoring (para. 4.21);

(e) local governments eligible for borrowing under the Bank loan willmaintain minimum debt service coverage ratios of 1.5 (para. 5.6);

(f) staffing and organization of PHDUs (para. 5.11);

(g) PDAM debt-equity ratio, debt service coverage (para. 5.13); and

(h) water enterprise OE& and depreciation coverage (para. 5.13).

7.2 The following will be conditions of disbursement for each localgovernment:

(a) signing of PIA acceptable to the Bank for disbursement of centralgovernment contributions (para. 4.7); and

(b) signing of a domestic lending arrangement acceptable to the Bank fordisbursement of on-lent funds (para. 3.10).

Recommendation

7.3 Subject to the above agreements and conditions, the proposed projectis suitable for a Bank Loan of $100 million to the Republic of Indonesia for20 years, including five years grace at the Bank's standard variable interestrate.

IMNDONES IA ANNEX IIMDONESIA ~~~~~~Page I of 2SlAWESI-I RrAN .JAYA IIRBAN 1WVFT.OPMF.NT PROJFCT

souNsI - COS? m ans up hSIsc l1ilio. lapiu

h& Cuot iNKial lear il12!12 IlIKial Iter 1112/93 Iioa iol Year 1113/9H !iwclal Ter I99419S 7imiatl ow Iw # To"al ProjtI 1990 Pries I Catet price cost Corret prite coat CBrreat price cot Correat price coot Cemt price cost owut prire cutLacal fac7ip Total Local larmip total local Soreip Tota L oal 0rein Total Lcal hnip i otal Lol Fesip Tstal Lacl 1g toLkl

I miwn sonu scmI Lo kAcimitij I I 0 01 0 1 00 o1l I 0.0 0.0 0. 00 0 I0 l 01 .00 0.6 I I 1 0* 012 Ciul lark 6.8 36 10H4 10 0o. 1-6 2 1 1 2 3.2 4.0 2.3 652 1.3 01. 2.1 0.1 *.4 1.1 911 S.2 14.23Iquiwet A Osteriala

l. 11* Ie2 3.3 3.5 e I 0 s 1.1 1.0 12 I.2 0.e 0.71 0 1.0 01 06 0.0 0.1 0.1 02 41 4.1-La 6 5 31. 10. I.6 0.9 2.5 4i. 2 7 1.l 1.1 0.1 2.5 0.9 0.S 14 0.2 1.1 0.3 1*1 Sl 1.1Is barn 03 0.1 01.4 0.1 0.0 0.1 0.1 0.0 0.1 0.1 0.0 #.I 0.0 0.0 0.1 0.0 0.0 0.0 -1 0.2 0.1

S1-total Iulomtt Iuoitwoa 14.2 11.1 25.1 2.1 3.0 5.0 7.0 5.0 12.0 5.7 4.0 1.1 2.3 1.0 4.3 0.8 1.1 2.0 18.1 I1.1 33.0S. U at ~ooot Leve 0 .0 0.0 6.0 0.0 01.0 0.0 0.0 0.01 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0I Icummatal U I.0 0.0 00 .- 0.0 0. 0.0 I I .0 0.0 0.0 0.0 0.0 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.06total Opeaos I Uiaitomo 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 I00 0.0 0.0 0.0 0.0 01.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0fotl War mplp latt 14.2 If a . I 2.1 3.0 5.0 7.0 5.0 12.0 S.? 4.0 9.7 2. 0.0 4.3 0.1 1.1 2.0 3.1 151 33.0aiamL. Lit"ioitim 0.1 0.0 0.1 7.1 0.0 2.1 1.5 0.0 1.5 01. 0.0 1.1 1.1 0.0 1.1 0.1 0. 0.1 0.0 0.0 0.02 civil 66.2 31.6 11.0 Ia.7 10. 22.8 11.5 9.0 27.4 16.6 1.5 2C.1 IS_.I .8 23n. IS.$ 1.3 24.1 1.A 6.4 120 03 Opig.aot a bteriala 05 0.1 1.1 1.6 0.0 0.0 0.0 #.I 1.2 1.3 0. 0 0.0 0.0 0.0 0.1 0.7 0.0 0.0 0.0 .1 I .1 2 0-LO 4.7 2.5 7.2 1.5 1.0 2.3 1.5 0.8 2.3 1.0 0.6 0.C 0.6 0.0 2.0 0.1 0.0 1.5 5 6 3 1 0 I

I m19-Ii 2, 1.3 1.6 103 0.0 0.4 0.7 0.4 1.0 0.0 0.3 0.5 0.5 0.3 0 .1 0 .3 01 20 15 00" 0.C 3.?7 00S 2.1 1.1 3.3 I.7 1.1 2.? 1.7 1.0 2.4 0.9 01- 1.5 I1 1 20 I 2 44 12 wtotl I ook"t h llwa 6.3 44.6 13; . 21.5 0.2 31.6 23.0 13.2 S.0 21.51 il.3 32.0 I1. 1.17 29.0 I. 11.2 32 7 14 0 W s ml IS. US at "tut WWl 0.6 4.6 IS.2 2.3 1.0 3.3 2.4 1.1 3.4 2.2 1.0 3.2 2.3 1.1 3.4 2.4 1.1 I.S 11.6 53 1 s 0 lcnrumal 1 !0.0 1 .0 M6 1.1 0.6 1.1 1 1. 10 2t.7 2.4 1.4 3.0 3.1 1.0 4.1 3.1 2.2 s1. 12. 1.0 19.06l-total oportma I hirtiac 21.i 1.0 31.1 3.0 I.C 5. 4.1 2.0 1 4.1 2.4 7.1 1.4 2.9 0.3 6.0 3.3 1.4 23.1 12.2 5.1

Wtotl Otor Setor 10.7 -11 164.17 24.1 11.1 366 27.0n 15.2 422 2C.1 13.1 J5.1 24.5 13.1 J.1 25.0 1.S i1 1.2 U11 116.1lOIIL M1 124.0 6S.1 10.1 27. 14.1 42.5 34.0 20.2 542 31.1 11.7 4.6 0.0 IS 4.4 2a.4 15.4 12.1 1.5 3.5 23.7C. 11ICIL AIST110 16.1 10.6 26.0 6.5 3.9 10.4 5.3 3.4 1.1 3.0 1.1 4.1 2.0 1.3 3.3 2.7 1.0 4.5 19.6 12.3 31.91011.I coM 1 16.1 76.4 216.5 341.2 1.6 2.9 J5.4 23.6 3.0 34.9 19.4 1.S 1.5 16.9 47 21.1 17.4 6.S tt.5 K.1 202.0

ilcala tilueies 2.1 1.3 3.4 2.6 1.6 4.2 2.2 1.2 3.4 1.6 0.9 2.S 1.S 0.1 ?.3 10. 5.9 15.9- Peace costiygeais 0.0 0.7 1.6 2.1 2.0 41t 2.8 2.6 5.4 3.3 3.0 6.2 4.0 3.7 1.1 U3.1 12.0 25 I# 14-4t 04:33 u L prices of Oct-10

INDONESIA ANNEX 1

SULAWFESl-TRIAN jAYA URBAN DEVELIOPME:NT PROJECT Page 2 of 2IIIU JIll C 0 eSTIoTliS ID RlSIlC (lillior hl pist

hep Cot lincial Tear 1991/92 liuKill fear 1992/93 luaacll TIe 1993/ rlciel feur 14 FUI mial yew lox 1W TO*l h tI Is ices I Crrt price cost Carrest pric coat Comret price cut rerat price cast ere"t price cut bmdt price catlocSl Fortip Total local oretigo Total lac Foelp total Woal ereipgl Total Local amip Totl hee ferig Ta Local hetig Tsul

I LaW krpimitij C 0 0.0 0.0 1- 0.1 so 0.0 0.0 0.0 00 0.0 0.0 tO OS 00 60 0-0 00 0. 0 O 0.62. Cii!l beta 116 3.6 is 1. 4.2 1.3 5.4 49 1.5 I.S 3.5 1.1 4.7 25 6 L. 3.3 1.0 6.3 1.3 11. S.1 21.23. haiupwut I ateriall_- 11 eS 1564 16.2 0O4 7.5 7U e.4 7.5 7.U 0.2 4.2 4.4 0.I 2. 2.1 0.0 6.0 01 1- 22.2 23.3-to 1.9 2.6 4.4 01 12 2.0 01 13 22 0.5 .7 1.2 2 6.3 0t 0.I Li2 0.3 2.s 3.1 0.34- iltal aw Swrwlsi llwriu44 ai i S l a.7 e.2 0.9 0.2 0.1 0.3 9.2 LI1 0.3 0.1 0.0 0.2 0.1 0.0 6.1 0.0 0. 0.6 0.? 7 .2 1.0

btotaI lbnmou at lpwidirw 15.0 21. 35.0 5.2 10.1 is.?7 4 105 1U.I 4.4 0.1 N05 2.9 3.2 6.1 1.2 1.4 2.6 2.5 31.2 51.6. U at earmot Level 0.0 0.0 0.6 0.0 0.0 0.0 0.0 6.0 0.0 0.0 0.0 0.0 I0 0.0 0.0 0.0 0.0 0.0 0.0 0. 006. lKcreutall 0 40 0.0 0.0 00 I 0.0 0.0 00 00I 0.0 I0 0 00 .0 00a 0.0 0.0 0.0 0.0 0.0 . .kb-total ilpention I blalesace 006 0.0 0.0 #.0 0.0 0.0 0.0 0.0 0.0 0. 0.10 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.6 0.01Tsua laster SeI Sodar 15.0 21.6 3.6 56. 10.1 15.7 6.4 10.6 16.0 4.4 U.1 10.6 2.0 3.2 6.1 1.2 1.4 2.0 2.5 31.2 SlT. enu elm1. Lid iquaiia 1.0 0.0 0.0 0 0.0 60 . 0.0 0.0 0.0 0.0 0. 0. 0 0 . 0 0 0 0 0.02. Civil NMa

6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 01.03. Ijipwst I lteriala -l0 0.0 0.0 0 .0 0.0 0.0 00 6.* 00 . 0.0 00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.-10 0.0~~1- 001 00 0.0 0.0 0.0 00 0 0 0..0 0 ..0 0 0.0 0. 0.0 10. 0.0 0.0 0.0 00 004. bus aidSuosoiale.0ri:I±. 00 00 00 00 *.*6 10. 0.0 0.I.I00 00 . .0.0 0 .0 0.0 0.0 I.0 0.6 I.0 0014. siop ad sl.ffimi e*tb

- lu1-ve 0.0 0 0.0 I.0 0. 0.0 0.0 0.0 0. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 00 I 00Wtou Imtant llibm 1.0 0.1 O.C 0.6 1.1 9.6 9. 1 0.0 D . 1.1 0. 0 11 1- #.I te . § c6- UafMtCartIl 0.0 0.0 0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 00 0.0 0.0 0.0 6 I I 6 C.)£ lactematal U 0~~~ ~~.0 00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 00I 0.0 0.0 0.0 I I. 0.0 0.0 0.0 0I 0.0 I00 ti-tetalpntieaaAhlat.e,egee 0.0 0 0.0- 0.0 0 0 0.0 I0 0.0 00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 00 0.0 0.0So-ttal Other Secteca 0.0 0.0 0.0 0.0 0 0 0.0 0 0 00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 10. 00 00 00 00lOAL MLE S Wm10 21.6 56 5-6 10.1 15.7 4.4 t 0.S 16.9 4.4 60 10.5 2.1 3.2 6.1 1.2 1.4 2.6 1.6 3J.2 5IIC TIUlOlL L3A555T 4.9 314 03 1.9 1.3 3.2 2.0 1.4 3.3 0.9 0s 1.4 107 0.6 1.1 1.1 104 1.0 6.0 4.1 10.0MILL C l Dl61 iL 19 25.0 44.9 7.5 11 4 1.9 0.4 11.6 20.2 5.2 4.6 1 . . 3.7 7.2 1.1 1.1 3.6 20. 25.3 UInKiod 11:

- aIcal costliuaas 0.7 1.2 2.0 0.0 1.2 2e. 0.6 0.7 1.2 0.3 0.3 0.7 01. 0.1 1.3 2.6 36 6.2Pnice catiboies 0.4 0.0 1.2 7 1.4 2.1 0.6 1.1 1.6 0.6 0.7 1.2 1.3 0.4 0. 2.4 4 .14-pr 4 A1 41 U prices f Bet-%

ANNEX 2Page 1 of 3

INDONESIA

SULAWESI-IRIAN JAYA bIRiAN DEVELOPMENT PROJECT

FiuKing pli

Sillie hpiah

U I ~ Pn t -- ---- e-1- 1 -- ----- --------- ), 1 ---- )(----- Iut ht)11111~~~~~TO Hl/m VWe, ptivt I irm 1" L ' im a-M .ili s11z LM in Changel Sores lhri 1In ktiI fl Iu soi11I u m nIA eit

131111 1.0 0.2 0.2 0.1 1.4 0.0 0.1 0.5 0.3 1.4 2.1 00. 0.6 7.0 4.2D 24.6 2.1 0.2 0.3 3.0 1.3 0.3 1.2 0.6 1.1 4.1 0.1 7.1 24.6 1.0

311= 9.5 1.1 0.5 0.0 0.1 0.3 0.0 0.1 0.2 1.2 3.5 0.2 1.1 9.5 5.3UIfiTU 20.4 13 1.3 012 3.5 1.3 0.2 1.1 0.2 1.1 5.6 0.4 3.1 3.4 12.3n11 42.6 6.2 4.5 0.3 5.3 1.g 0.4 0.8 1.0 1.9 5.6 1.5 13.2 4.6 24.1PmIU 12.6 1.2 1.5 0.0 1.5 0.6 0.1 0.4 0.3 1.2 2.4 0.3 3.1 12.6 7.1W W11 63.1 3.6 3.4 1.4 0.6 4.4 0.7 3.2 2.2 7.2 21.1 0.0 1.1 63.1 31.8

mE 13.7 1.0 0.1 0.0 2.1 0.0 0.1 0.6 0.4 2.1 3.3 1.3 2.6 13.1 0.0Nf-N 5.3 0.2 0.1 0.0 1.3 0.6 0.0 0.3 1.6 0.3 0.3 0.1 0.3 5.0 3.1w total 21.1 17.4 12.3 2.2 29.0 12.1 1.0 3.2 5.6 18.9 3 5.0 4.5 3.1 231.1 110.2Techicul Auuilta 31.3 0.6 1.6 0.0 1.6 0.5 0.1 0.4 0.0 6.5 16.3 0.3 3.3 31.3 21.

Tobl bclWili Owmt U 222.9 to.. 13.3 2.2 30.6 12.6 1.9 8.6 5.1 25.5 0.3 4.1 43.0 232. 13.6Fceatop distvhtiss: 100f 7.11 6.01 0.31 13.11 5.4 0.0 3.7 2.4 11.1 2.51 21. US.E 1.n u.5- - - -- - - - - - - - - - --- --- - ----- - -- ---------- -- -- - - - - - - - - - - - - - _ _

rmt ON1 16.3 4.1 4.3 0.0 0.0 2.2 0.0 0.1 4.3 1.3 0.0 0.0 0.0 16.3 0.0

Total IKlludlg Ceg IO 243.0 22.1 18.2 2.2 30.6 14.0 1.9 8.1 10.6 26.1 66.3 4.0 43.0 2.1 13.1Curnmt prie: SIA..- l. IN 13 total Is t!is table iselliu 0.74 B. Japau'. kut 14-hp 03:21

ANNEX 2Page 2 of 3

INDXNESIA

SULAWFSI-IRIAN JAVA URBAN DEVELOPMENT PROJECT

liscaieg PlanBillie mpish

SimTi Project(--------Level 11 -------- (-------- lpql-- ---- ------ el0 ?Mst …SuUIIS O PAD/Pu Ouer Private IiPUS lion A AU 1 -_ i 1 eCharges Source. IjO Doeestic bti P I Sl II31I mL MI' 1otal

later Sepply 33.3 3.6 7.1 0.0 0.0 0.0 0.0 0.0 0.0 1.2 0.0 2.2 11.? 33.3 19.?hraimge 37.9 3.0 0.0 0.0 2.9 0.9 0.6 2.3 0.0 6.3 21.0 0.0 0.3 37.9 24.2Solid last. 10.4 0.2 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.6 1.I 0.Q 6.1 10.4 11Irns Uante 4.3 0.2 0.0 1.0 0.3 0.1 0.0 0.0 0.0 0.3 0.3 0.2 1.5 4.3 2.4loas 34.1 2.2 0.0 1.2 22.0 7.1 1.2 5.6 0.6 1.8 24.2 1.3 10.9 34.1 57.0liP 10.7 3.0 0.0 0.0 3.7 1.2 0.0 0.1 0.0 0.7 2.1 0.0 0.0 107 1 111p 0.9 0.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0 9 0Imeresental 0113 19.0 4.5 5.2 0.0 0.0 2.7 0.0 0.0 5.1 1.5 0.0 0.0 0.0 19 0 oO '

Tecbniel Asslutance 31.9 0.6 1.6 0.0 1.6 0.5 0.1 0.4 0.0 6.5 16.3 0.3 3.9 31 9 I

Total IxclWdig Current 013: 232.9 16.0 13.9 2.2 30.6 12.6 1.9 8.6 5.7 25.5 U.3 4.8 43.0 232.9 13.3Perceutage distriititIO: 100.01 7.11 6.01 0.91 13.11 5.41 0.11 3.71 2.41 10.91 23.51 2.11 1U.5 10.OS 46.9

ImelWes Japanese Crat $ 0.74 . W (milie.) 75.3

Crnent 01o 16.9 4.1 4.3 0.0 0.0 2.2 0.0 0.1 4.1 1.3 0.0 0.0 0.0 16.9 0.0

Total IKcludiWg Current 0N: 249.8 22.1 18.2 2.2 30.6 14.8 1.9 6.t 10.6 26.3 66.3 4.3 43.0 249. 13.3(Current Prices; U1. 1,645 - - - 14- - -- -

14-Apt 10:53 1

I

Vt L'IB 'L ~I's 63x lU I's I's I's IsB I's I's 'Z IsB LI' a 1suSI ila '

uu u's uu x~ ~~I's 3.61 I's I's I's I's z's u's I's I's aI' :m1 n1 1 a sI"

U W'I UBl S'l lt' t'61 S'S 3S 0'S I'S S SB t'Z U'' LII M 1 I

II'S 'S 1 ' SB B' rS'S 'I--- I' 's---Is--- I' 's ---- 0'B--- B'S ----- 50 B.C -- I'19-- INV U UDNIXII3

*'j Ij 5. I's 5'1 go I's I's s's I's f# I's s's g.t g'zstn-Sl I' I's Is Ss I' I's I's I's SOl s'l s Ies s'c I's o m

6II 'lI 's~ I's I I' s 5 S'S S'S B'S I's I's I's I's 5'0 lB-ZBl

E I's I's I's 5'i I'S I's I's I's 'I' I's I's I's B'O I'S mIl91' Cl9 I's SS I's 9 S' I's I's B'S S'S S's I's I's S'S 3' IllISI I'S I's S'S 01i I' SBI B'S I's B's I's S's $5 so 1t mmI'll #1 $'I ' 55 C I 's I's S'I I's I's B's I's I's S'S 51 Im NJi

ri I ML~~~~~~~SI 33~~ P U/Iusi mqni~~~ w ml U 1 ml 1SWm 3P31ssiM

mmS ml ""i 48 "o Il

vldq wiltill ~ ~ ~ ~ ~ ~ ~~~YA Kl

1LJAfO~11d IWAMAdOIAW NVR!fl VWXf WI'JI-I SMYMVfS

C JO £ ave VIS34OaNII

_ __ __

- 44 -

ANNEX 3Page 1 of 1S

INDONESIA

SULAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

TECHNICAL ASSISTANCE

Following summarizes agreed technical assistance to support the execution of theproject. The first package of bridging consultancy, covers both the Irian Jayaand the Sulawesi components and is summarized under A. After that, the SulawesiTA program is summarized under B followed by the Irian Jaya TA program sammarizedunder C.

A. BRIDGING CONSULTANCY

PACKAGE I.

OUTLINE TERMS OF REFERENCE

Assignment Title: Bridging Consultancy Services

Implementing Agency: Ministry of Public Works

Objectives: Ensure further preparation of the project in Sulawesi andIrian Jaya until loan effectiveness

Main Tasks: Support to GOI through Negotiations and Board presentation ofthe Project, including coordination of inputs from the localand provincial governments

- Prepare selection of consultants to provideimplementation services for the project;

- Supervise establishment of implementation arrangementsprior to loan effec.iveness;

- Prepare detailed design and bidding document of firstyear sub-projects;

- Prepare PIL and ANDAL studies where required:

- Develop provincial environmental assessment capacity inSulawesi and Irian Jaya.

Qualificationsrequired: A team of local and expatriate consultant3 including the

following:- team leader (engineer/urban planner)- financial experts- environmental experts- institutional experts- water supply and municipal engineers

- 45 -

ANNEX 3Page 2 of 15

Duration: About 12 months: January - December 1991

Staffinig: Consultancy: about 90 manmonths (60 local, 29 foreign)

Costs: US $ 740,000

Financing of the bridging support would be provided from the Japanese GrantFacility (JGF).

B. TECHNICAL ASSISTANCE - SULAWESI COMPONENT

The main packages of implementation support are as follows:

II. Engineering, design and supervision of all physical subprojectsIII. Support for RIAP preparation and MAPATDA installationIV. Support for POHKS installationV. PMDU (Water Enterprise) advisory supportVI. Advisory services to Bappeda Tk II for project monitoring and evaluationVII. Training identification, design and managementVIII.Support to Batch II and III Local Governments for PJM preparation.

Two main categories can be distinguished. Packages II and VI areengineering/implementation support services, while Packages III, IV, V, VII aremainly finAncial and institutional development support services.

Two separate groups of censultants, specialized in there respective areas, couldbe appointed to provide the requi' -d services. However, all RISOS activitiesshould be managed by one team lead . Outline TOR, staffmonths requirements andcost estimates for Packages II to VIII are attached.

Any engineering services needed for sub-projtects not financed by RDA and APBNfunds will be provided in-house (assisted by local consultants where needed) bythe agencies concerned and costs therefore have been included in the non-watersupply sub-project costs as design and supervision overheads.

PACKAGE II.

OUTLINE TERMS OF REFERENCE

Assignment Title: Engineering, Design and Supervision Services

Implementing Agency: Ministry of Public Works

Objectives: To execute engineering design and supervision of projects forthe four provincial and nine local governments and PDAMs inSulawesi Provinces.

Main Tasks: Design and supervise water supply subprojects:

- Soil investigations atd topographic surveys;

- Preparation of lay-out plans for civil works;

- 46 -

ANNE% 3Page 3 of 15

- Determination of pipe alignrments, pumping stations andconnectionq for water supply;

- Calculat±u. and preparation of technical drawings;

- Preparation of detailed design specifications biddingdocuments and technical specifications for procurement;

- Preparation of detailed cost estimate andimpleoentation schedules;

- Supervision of execution.

Design and supervision of non-water supply subprojects:

- Supervision of preparation of detailed design and tenderdocuments;

- Assist in preparing of ICB contracts;

- Assist in bid evaluation;

- Supervision of execution;

Qualificationsrequired: A team of lecal and foreign engineerAng consultants.

Duration: About 48 months: December 1991 - January 1996

Staffing: About 600 person-months (400 local and 200 foreign)

Costs: US$ 4.98 million

PACKAGES III/A and III/B.

OUTLINE TERMS OF REFERENCE

Assignment Title: Advisory Services for RIAP and LIDAP Preparation andImplementation

Implementing Agency: Ministry of Rome Affairs (PUOD and Bangda)

Objectivess Prepare and implement RIAP and LIDAP action plans and expandinstallation of the MAPATDA system in the Sulawesi Provinces.

Mtain Tasks: II/A:^ - Assist local governments in implemnting the MAPATDA

system( the system has already been installed in UjungPandaig and Manado);

Assist local governments in implementing revenueimprovement actions;

- 47 -

ANNEX 3Page 4 of 15

Ill/B:

- Assist local governments in preparing and implementinginstitutional development aLtion plans (LIDAPs);

Qualificationsrequired: A team of local and foreign consultants vith relevant

experience in municipal finance and public administration.

Durationt About 18 months: November 1991 - July 1992

Staffing: Consultancy, about 130 person-months (100 local, 30 foreigp)

Costs: US $ 1,000,000 (III/A US$ 400,000 and III/B USS 600,000)

PACKAGE IV.

OUTLINE TERMS OF REFERENCE

Assignrmnt Title: Operation and Maintenance Management Support (POIMS)

Implementing Agency: Ministry of Home Affairs

Objectives: Expand installation of the POMMS system in SulawesiProvinces.

Mainr Tasks: Installation of POMKS in 8 local governments (the system hasalready been installed in Ujung Pandang);

Assist local government staff in performing adequate O&M(management, progranming, budgeting);

Qualificationsrequireds A teas of local and foreign consultants including

mnicipal engineers and management consultants.

Durations About 18 onths (November 1991 - July 1993)

Staffing: Cousultancy, about 140 person-months (128 local and 12foreipg).

Costs US $ 760,000

PACKAGE V.

OUTLINE TEMS OF UFmNCZ

Assignment Titles Advisory Services Provincial Monitoring and Development UnLts(PHU).

Implel nting Agencys Ministry of Public Works

- 48 -

AMNES 3Page 5 of 15

Objectives: Develop and strengthen the recently established PMDU inSulavesi provinces and guide local water enterprises of theproject towns to improve O&M and management.

Main Tasks: To further develop the recently established PMDU in SulawesiProvinces;

To provide training in network analysis and eakage control;

To assess maintenance needs of water enterprises involved inthe Project;

To develop 'on the jobs training capabilities in PMDU;

To train PMDU staff in financial analysis, financialmanagement and tariff analysis.

Qualificationsrequired: A team of local and foreign consultants including the

followings- water supply engineers- leakage control experts- financial experts

Duration: 24 months (November 1991 - July 1992)

Staffing: About 130 person-months (96 local, 34 foreign)

Costst US$ 990.000 (US $ 410,000 from loan, US$580,000 from domesticfunds)

PACKAGE VI.

OUTLINE TERMS OF REFERENCE

Assignment Title: Implementation assistance to Tingkat I and II to Monitor andEvaluate IUIDP Sub-projects.

Impleenting Agency: Ministry of Public Works.

Objectives: Implementation of a Monitoring and Evaluation System at locallevel.

Main Taskst To implement the monitoring system at the moment beingdeveloped for East Java - Bali UDP;

To assist the Bappeda Tingkat I and II in performing therequired M&E tasks:

To assist local governments in the annual updating of the PJM(expenditure program), financing plan and RIAP).

- 49 -

ANNEX 3Page 6 of 15

Qualificationsrequired: A team of local and foreign consultants including:

- Project Support Manager- Project Support Co-managers

Duration: 60 months (November 1991 - October 1996)

Staffing: Consultancy, 145 person-months (100 local, 45 foreign)

Costs: US $ 1,200,000

PACKAGE VII/A

OUTLINE TERMS OF REFERENCE

Assignment Title: Consultancy Services for the Preparation of IUIDP for Batch IIand III Local Governments in Sulawesi Provinces.

Implementing Agency: Ministry of Public Works

Objectiv~es: IUIDP Preparation for Batches II and III Local Governments.

Main Tasks: Assist in preparation of PJM and financing plans for Batch IIand III local governments

Qualificationsrequired: A team of local and foreign consultants with the following

expertise:- municipal engineering- water supply engineering- municipal finance- water enterprise finance- urban economics- urban planning

Duration: About 12 months (November 1991 - October 1992)

Staffing: Consultancy services: about 135 person-months (100 local, 35foreign)

Costs: US $ 1,000,000

PACKAGE VIIB.

OUTLINE TERMS OF REFERENCE

AssigDnment Titleand Objective: Development of urban strategies for fast growing areas of

Sulawesi and Irian Jaya

Implementing Agency: Ministry of Public Works

50

ANNEX 3Page 7 of 15

Qualificationsrequired: A team of local and foreign consultants with expertise in

regional urban planning, urban economics and land usemanagement

Duration: About 12 months (November 1991 - October 1992)

Staffing: Consultancy about 75 person-months (63 local, 12 foreign)

Cost: US$ 500,000

PACKAGE VIII.

TECHNICAL ASSISTANCE - OUTLINE TERMS OF REFERENCE

Assignment Title: Training Identification, Design and Management

Executing Agency: Ministry of Public Works

Objectives: Identification of training needs of the 9 Local Governmentsinvolved in the Project. Preparation of outline TOR for thedesign of training courses and materials.

Main Tasks: Identification of training needs

- Preparation of outline TOR for the design of training;

- Assistance to the IUIDP Training Project to design therequired training program;

- Management of the training delivery.

Qualificationsrequired: A team of local training experts

Duration: About 12 months (November 1991 - October 1992)

Staffing: Consultancy, about 90 person-months.

Costs: US $ 500,000

&NNIX 3rage A of 15

- IRIAN JAYA WATER SUPPLY COMPONENT

SUISEARY OF TECHNICAL ASSISTANCE REQUIREMENTS

"here are Sour nac'-.aees rroposec

Project Management Unit/Project Ieplesentation Unit Support

The project will include technical assistance for proJect implementation.This will primarily include the provision of local and foreign consultantassistanie to the Project Management Unit (PMIJ) which will be establishedwithin the Provincial Water Supply Project Offtce (PPSAB) Jayapura. Theadvisers to the PMU will also support and assist the Project ImplemenitationUntts (PIU) to be established In the project towns.

ObJectives

The assistanice to the PMIU will cover two ain areas.

(a) Overall project manigement, organisation and coordination to be carriedout on a province wide basis from Jayapura.

(b) More direct inputs to the PIUs within the sub-project towns related tothe effictent. execution of physical works and associated administrationand support functions. Staffing for this work will be based in.avaptira but will involve extended periods in the other sub-projecttownis - particularly the major towns of Sorong. Manokwari and Blak.

The key objectives for Part (a) above are to assist the PMU with:

o Overall project implementation planning and technical coordination:

o Financial monitoring, review and problem solving covering budg'evting.expenditure and reimbursement:

o Monitoring, review and problem solving in the areas of procurement.construction and handover;

o Coordination of PIU reporting and operations;

o Liaison with the World Bank and Cipta Karya.

The key objectives for Part (b) above are to assist the PlUs wlth:

o Management of physical and financial progress including monitoring.review and problem solving;

o Review and evaluation of contractor's tenders and design detaila;

o Training In contract administration Including quality control. contractcoor,iination. work schedullng, establishment and maintenance of "as-constriucted" documentation systems:

o Training in syRtem testing and commissioning:

- 52 -

ANNEX 3Page 9 of 15

oI ,II- t i0 l t ;1i inci t)f B4P\Nm PIDA! s tla tf '110 fp)Crait orI,

n, 1 nI§ ,t j I )

.1imen tI '3- to) I'ui t' 1 ') ' No(l- p t hn t tI h P>M Ii I I Iront, i ne at V r t hi q t I me hilt.hi t IIOLI t t l1t' PM 'Il ;V, i -;L. I

Perann-Mnnth P

Ille t'sl ithi Ied R! 8It M '.5 rI mit iII the *5i t tihe'-d Tablit A1. 1 . lI summarv

*o |"X*)sl 70 person-months, O'.1 170 person-months

1 hli' t1s lfIlati'd *si 1t1h1. thiti- of tti thi'A (in current prices i isio 4,151 or US$ 2.25 rvillion.

EAI'i -i ''i _. ., i?S i-lll!t pi,l ,, rl plVOe''''t Ti"J1efl'zt!'lt' 'it 011

Tiht ahthiv, eftin%.itv.s for TA incliide the provision of support personnelI i1 .jt iS . h lrou' I mi opetjl orIi S e tr f or thie consuil tauit personnAel , andixli, i ii ttitiRi lellit ;II( Ii 1i Xiil tmPn s Speci.7list eiu i pment for pro ject

i j 1' ) .n1) ill 1 t ,!l)) i iII,' 1 H I ne I iidtt il7 tho ye) I vant pr'ortUrenipit and 'uP1i t iVii:t i ( iol t I eli I s

it Ir a-ziimeri that GtlI will IItiR oXiS1 inq of ficosi f'or acc mmoi(at ing the PMU andi.J iis". i rA I. I Il' ,.l f i 1 .l( i I ie I are il,emrnti to hpe ihnt:luded in Part A of the

PACKAGE X

UPW Task Force

Il 41, ,1; 1w ii ! .b-uv i ic'n Ih -i-*I is pi needt for extensive day labour worksfo I-iji s to) ox isl il' 1ii'el iunes and servtce connections to reduce leakageNid( iviwo-o-*- cniOl!ii'r rArvIrp, .\ttontinn will also be paid to moeter readingai,,l 1 jell ,,e*ede. Th i.s work. which will he concentrated In the first{' v't'.iu'' 1 i he pt-c Ied mho(itid prneeted in p)irall1 with thet constricttion ofnew works.

tilhill iplicitV of t;Isks a1id1 the difficuiltv in precise scope definition meanthat t?e'soe woi't's dtie not 9uitet1 to exeoution bv contract. It is proposed thateach W,5At' entt, lpris wi l establish a separate task force Including;Mop x!ltrVois ae(i tiadeuxi-i,a. Thpse plers-onnlp] will in the longer term become thewiilotfioan. Rtoiff of the t7xnanded WEs. The Wrs wouild he paid for workUli1 t'Ci atkt' I IIV' he Task Forpe oll an agrreed sohedule of rates basis. TheHc?ie,lm -e rl S l,piIs woild t nted i to he strurti repd to provided an incentive for theWFs to i!nrlertnke the wnrk bhv dav labotir rather than by contract. The3)ll.1 ij 'is unil eqjili pmelit Ior 0'4e by 1 hf Task Force will be procurred under thefPlI4,lXn peurcelremient packeu;les. A separate LCR package Is proposed earlv in thepropct tto ensure that kep materials are available as soon as possible aftprcommPncmernt of Implementatlon.

-53 -

AWINKX IPage 10 of 15

Oh i vctoi.s

T'Ii It jh r i i vs tit li his TA apo to IassiSt the WFs with the estah Iishment and

i'lit'i dli ol o-if r,ask Frote itct ivities including the following:

iPit I i f i -t i,zl 11iii olt'oaramifi t uif of iorks:

I- i-I mv id iv II,im 'ilp iiud advice on uiaintenn.nce anid repair techniques;

,, I , II, AI 1silliljt. j till in ti est 1 ando ek diete.et lop I \ Il tI l I jfI it' I0jlil tl iI)l-l''it-d metor' rui,linf' and hiling procedures:

S) %,! l tlt I IJF I'I 1 ll.ic(t! 11mil) i tur. ilile

1 h v. en ,t -I "; i ('1 ol p 11 iOli -illtd ,iOntpniace- slal I he dir?ctetd towards shortI't 1) Vii il t j ii Its wl;i11 re tsIIl t I n improvetld standards of service

it@'li ' 1-l9. 'i'-.91 l)i-(ms,iitt_' iuifid(,pnc viAter sales anid collectJonitfit-f iqnit s: *IS uossible after commenicement of project

'l itj SPI ... ..- . ivmllti is pin. jis-l il) a]l towns blut th lemplhasis would be In thosetohliS ti w 1m Whi t1lt'O *uta siviiificant rehabilitation components. These

ii' iWi, .I'.I-ii ; Hii ke. I . N;jhiHre. Fik Fak anti Wamena. For Serui and

i Ii' 1 ni) -pio io, ! )lse j are fr() essential Iv new water supp]y.. .I N.nsi-,t I, .s htsl,v wsill II1 sone rehabil l tation of existing

i : , i 1 nn:- oll t.n- - iJIJ tl :i inmlL Wi I I he provided with a view to establishing,n *--+t) II47 l i h rOti H? iI ' intl I intttI i r ljpoe'afliS.

2 ,, .. > , t~ r Is 1i,l lln.r 11t.\ is 2 FeiI I. Fowllw-p) assIsta(ce aind support

':. j i t 4 ¢ )t I\ il 1 ii.' t PI I W I[

Person-Month Requirements

10w is i iii I'l. l ni.in-nion ihs are sot onil. iii tlie attached table. ln s wiumarv tho

'Il i )lti& z it. s tiii ?t I'zt

bov I-iv 17 person-monthsOs 1.0*f4 52 person-months

(uwSt Fst Wllch-

1h, e t-!1 I ,l ;il I sisI I Ic this eoipn,Iiln orf I1h l'A (in current prrices is

Hp 1,033 million or US$ 560,000.

11 iN ds-sl ih-d 'I I i.1 Ilit T.'-ii k inF IIt sln l s ants will USe1 the same offices as thePM1P as/i wi? i i , l k Iiini trl,e W 's offices.

Eqil Thili I i.i I h, , I]FW Task Forrp wi l l he provided tinder an LCB procurementpaik*Afe toI be 1lil iuimedilteiv fol Iowing loan effectiveness. Computers andother siupport equipmPent shall he provided inder the TA.

54 -

ANNEX 3Page 11 of 15

PACKAGE XI

Provincial Monitoring and Development Unit

A PMOIt I iid lit- em-I ib ish#,ill ini T'ian Java in accordanee with the establishedI; O it lni I II i i t'I.o fu.! s:t to IeIpvfa Io[ment

Thv it iotc ixvw- nif tile I-MIh mi-e nis follows.

n Pin iw ,,f ini,tt i il. , tim tiisttat.ive and technical coidiition of WEs bycm' i'I ,!, i, vs Iit") tho mttoni hiv reports Aul)mitted by tlhem.

O x p1, . iStJ 'if Wi- prrm tcnm.rune atl(i the iflenttificationn of shortcomings and

Pr ro'I, is iot, fii Iei?11, Ia .il inistrat IIe teehn ical and managerlal. andfirvf !im il i,i,dJ px!t-tt ist in *i-der to assist the d,evelopment of WEs.

O Ait;11' 1! \'i .if f i lolloi a I d I pelen i Ic iif ormat ioni rpeeived with regard to

1i1;t,i ilp,! tillP.sL. hnfl .1t WE and proviriciii level. and reporting to the

P,r'.il-ioln an1 C6-11',;1 oiv'1mnrients n) progress in relation to targetscif,t;w l!t' t' Wi l 11 1t I1 ii-in of ic,t Jion plans as rpquiired.

o) ?Pi < iwt Im1 I let Iiv rfm')Its anti stat ist iral information to Provtncial,,,, ( 1it ;T t; t i 1 hi i ti a1s iliutit I he keyv slpecttS of the provincial urbanvist m i.icpn-i 9',1- aRmi the performacllep of individual WEs.

* s& it .g.: ! e. i st mice. it, prtpmr iny necessarv i1hantgre in tariff levels.wd Il 1:wi-t ,1M.rse,n. h\, I h wali>r Pni Pi-prisps.

ro 1 It 0i't i J, orvo. nrin I itivoe rn'r:t iaroposals and appraisal of same. not

*,)1k. leit! 1tt I it) Iritoia of terchnl"al an,t financial soundness. but

, li It ., I i nw natiomal and provincial targtets and priorities.

'tl ,,,I is ;it inflorno;itilln tentrte and( an intermediatorv for the exchanf'e,itil d is4sni I otmli of rnew/ Imirovpoved niet liods, svstenis and proceduresciIv' 'ii\; if) Il'hdnil W; 'j slipt!)lv.

o) I.iiu to nu"l ti.'ol.tlifatiol with the reP,ionia� trainilng centre In

I fi-!r I I fvv 1f I li i nv imeeds. overitt s i nq training events and monitoringiq!,t'i r t t1.1u'mrd(i t ra i Iitg objiel ives.

ProOi i I)i utf iss i t alnep in organ i sat ion, coordinlation anditi.:t.1i':t. 111 ot oPf cotmtniunitv inforniat In progirams and improvement ofh, If VI ",II I ti-I Ii i)IIS.

I Prov i; i on uf I pchn i a l cuipcport to WF in areas where kabupaten based

Pxptorl ise ta^ntiot he- prvided eoonomitcall ]V. for example electrica'l and

mehAnicaiiFl ntiIin n ni no and spec ialist proccrrlelnnt .

55

ANNEX 3PFage 12 of Y5

I t is Fiv,-mn#-tl I itat ;irrmnopomtnts for pst Ail)w i slimeiit of t he PMDIJ wi Il Ibe

tndtr.rtlikon dUi incy tho,' f i'st \'eoir u,f tl ie llroj(et. Thp TA comjponnnt of prolectwi I I fiiil(i I hte I )I i,wi II,

( ) I t li ,11\ i t i- iiI lIIe (ii' t ' i lt i F, y 2 peir l's of PMI)U D ) peYat i on :

(Ii I linni ,rc It tt for the ti rst, 'I Vefar l,' ouperatinn inc ldiding salaries for

111i fit Sl ;1l I off le iIimiTi) rosts :ilind tt'ave1 .

tar -ili i o', I' hMI OliW o il, lq I in'y l)'ii (iti vptri% es awrll eqtiipment will be0l't1' 1t4}l ,1X114 P ;ill s I -if lIn-F,-l(i,,.

Person-Month Requir-ements

It is estimated that 24 person-months of foreign consultancy assistance is

required. This wouild be provided by a senior adviser in water enterpriseoperation and managem.ent, 18 person-months, and other (unallocated) technicalspecialists, 6 person-months.

i Ii , t-I 11i Il (i I, t u i I i xs t-willmilfiel)l of the TA (in current prices) is set (ut

Itf if1w1 *i~~~~~~~~ it iw~~~~~itR

PNIl i' I 793

(ThIl t ;i ,,1v' !IlIS I

;g ())*' t,1 Oi f lJ v ,I)F I II F.* n\i-1ii'i I' ,,, <a ffl li' 539i

- l1)'l j ret 111110l1 lltJ 1 rfi

[Ia'.| I rugSts til s irt f 4:321.124

l()iAI, 6is I h } ~~~~~~~~~~1.917or US$ 1,!39,n2O

(If I he I -. It r itii 1 i, is itidii1 fr,im thte IBRI) loan. l'he esentliJlv'e'Y +lt r'. tit i M11i operXil ion are fiNndold from Oi6 sotirtes IDIP Murlit).

PACr(AGE YTTWater mntetprise Staff Training

I i, pl' i-' Itk I I1 ,I)II Ii Iht - to I 1lhIj seelor wide HRlD UsiiiF trutrilln iup resouresfii *ve b tOil ;'iile1 1ci I He fiilai Rs otirces Development Project (HRDPI. The stub-

pri if'cl wi I I foll thf di iert traininFi o costs of recipients fromn the Ii ian .Ja,a

Oh (',t (Vc.i

7 o p,midv 1r.i0nino to some400 Trian .Java WE staff to he rondiuctedi undor the

huspiclees of tl(p HRIIP. Traini iwr wonild hp inc I dle-d for

o DIrectors of WEs and other pprsonnel requilring special facilitits atthe National Training Centre in Jakarta:

- 56 -

.UNEX 3"'aae 3!o 1is

S*11iOI Ot eiStUIi'e it I It) li U oi(thA1 i't;t in I jL ( iet ve in (iTl n Pandang:

o N¶0~ ~ii 1Mll;id'et's S aiii admilnistrat ve. ;l- rica1 stat ff in.i,,iV1b1'IId A II., IIIs (r m I, Ii it?S I)'E)ViIf- (I as4 Ila t of t lie PM)U

Thle' e:i iIll.te*'I i '4I':. ni tim, iii It^:. I tiii liiv cwsts are set out below in current

M_il wr

1,111 1 rglb I 1 1 ,1t ti4) I I . ( h'; t|| is I e I I c ( f ,t a II (I 1230

A t It iIv ii i MIs 1t. i .i i ont

iti11i t 1',t i bIwrs 190

oI O :I 1 "l i I R 370

or US$ 200,500

- 7 - - D .- - -' - --

en 0.' c'J

-4 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-

- 0.. ~ ~ ~ ~ ----

'Icr-_ _ + __ 4|

-- - ----- - l | -- - ------ C'------ - ---- - -- -'

I-2 _- __' U- - * f _-tLggE_e_

I *~~~~~~~~~~~~~~~~~~~~~~I

* n 8 * 5 ;X!

S ~_s_I -_-_ -- --------- …-___ °

-e- gI _ --- S-------------------------------- - -f~~~~~ 9 ge IS Aew Xt Zw owfg Sg!gg_ rD

;- I|\ ii 5 KXjwI -*9 WI

1l ti it l0i! i 1 i111i; i °

| co ! c !! - '-4 -_

iA -44y

____________________------

I------ --

- - - - - - - - - - - - - - - - - - - - -

-- - - - - - - - - - - S-- - - - - - - - - -- . -a - .0 - - - - -. - - -a ---

- 59 -INDONESIA ANNEX 4

SULAWESI-IRIAN JAYA URBAN DEVELOPMENT PROJECT Page 1

IDmplementation Arrangements

IMPLEMENTATION SCHEDULE SULAWESI COMPONENT

PROGRAM EM.ENT 1992 1992 199 94 1995 196

1. P,-Pi --- -

1. Pr,pm Phymiuil Implm..eeatise- - -

1.1 W - - -

- d.am d &4,u xx m xx x

-_k d.wexie pma sea 3x X-

- lad isio xe_

- p_awineM of eq*"*. xx _e n M x xxx -- _ivil OO&Anmw6So xx _ xx xxua xu.- Dmu,in sa xxx- m _xxx =

| -L& m -o le - -

1,2 S*W~ Wus" Diqoml

D tared efsig p xx X= x = xm xx x-~~ -iA e e - -_ - -_

- DwiAX dOf. x xxx m m . xx

-Civa WerE Ce L-Molie m _ cxm x xs xxxxn xxx0 xxxx m1.3 DUtia-_

- DaaW i ma xx xx xxx Ux

- Civi Wotb C eniu 3rn ex mX = xxxx mx xxx xxx1.4 Uuba RweD.

- Debilad ds xx m 3- xx

- Civi Wodo C@oa i., _= _m xx xmm xxx Wm m1.5 HRusesWasoDiapml

- Dowaoid mmgax mm mm xmm

- Ci4i Wogim coewiuwtiom X mm mm 3mm mm MM 3= mm1.6n KW d MM…

- Dowled Wmn xxx xxx 3= _ -x

- Civi Woda Ceausaew. mm ex mm mxx xum xxm xxx xx xxx

2. _uaation of MAPATOA m

S. 1AU0606 Of POWS x xm

4. T.-saidl A__ w A.1 Daidsia. C* Svi x-x - -=

A.2 fEiwa. DD A Suvasee

intWw aply sx m x z x x xA.S E _imio DD vS m -

bi w_uI sW * 3s s x x x x x

A.4 Adwvay &Simm MAPATOA x x

A.S Adviey Smwam POIS x xxA.6 dvemy Slvam PMDU xm.-

A.7 Advi_w w to TX D -

one Mgiwgimg & Ev,haai. xx xxm x x x x x x

A.S PpWustift ofsw boo madW L.oa vsw X. m__

A.9 Tnie*ia W06.2iSm~e Desigm - I

a Mmus.ep xi x

- 60 -

ANNEX 4APage 2 of 2

INDONESIA

SULAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

Implementation Arrangements

Implementation ScheduleIrian Java Component

1990 1991 1992 1993 1994 1995 1996

Source development xx xxix

Treatment facilities xx XXss xxix xxr;

Pumping stations sx xxxi

Transmission mains xx sxss ----

Distributon mains sxs xxx xxxrss

Service reservoirs xx xxxs xxxs mx

Service connections xxxi xxx- xXxi xxxi xx

Other facilities xx xxxs xxx xxxs xxx x

Land acquisition xxx xs

Note: Schedule is indicative only for all eight project towns and showsgeneralized start, length and sequence of program elements. Activitiesin specific towns may vary up to 18 months from above schedule.

- 61 -

ANNEX 4BPage 1 of 9

INDONESIA

SULAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

I. Project Implementation ArrangementsSULAWESI Component

A. Implementation Arrangements

Introduction

1. In accordance with Law Nr. 5/1974, Law Nr 13/1980 and GovernmentRegulations nrs 26/1985, 1411987 and 6/1988, specific implementationresponsibilities for the infrastructure sub-sectors covered by theProject in the Sulawesi provinces have been assigned to the three tiers ofGovernment.

2. At local and provincial government level project implementationresponsibilities and arrangements have been further defined based on theprinciple that existing structural agencies are assigned specificresponsibilities for implementation tasks, where necessary assisted byspecific units to be established supporting these organizations and byconsultants attached to these organizations.

3. The establishment of new functional units separate from the struc-tural organizations has been avoided. Similarly, project implementationwill utilise existing processes and procedures to the maximum extent possible,adding only coordination mechanisms where these are as yet insufficientlydeveloped for the purpose of effectively implementing the project within theabove legal and institutional framework. It is considered that in tnis way,project implementation will make a maximum cont ibution to strengthening theinstitutional capability of Tk I and Tk II organizations.

4. The proposed implementation arrangements as set out below have to beconsidered as a general model to be modified according to local conditions.The proposed organizational structure and arrangements are shown on Figure4.A.

B. Implementation Responsibilities of Local Governments

5. The IUIDP Steering Committee, as a non-structural body, ispositioned directly under the Kepala Daerah. This Committee will beresponsible for the overall coordination and suP-tvision of projectimplementation. The chairman would be the Mayot .r Sekwilda. Vice chairmanand secretary are proposed to be respectively the Sekwilda or Head of Bappedaand the Head of Bappeda or Fispra of Bappeda. Members are the heads of thedepartments involved in IUIDP. Steering Committees have been established inall 9 TK II covered by the Sulawesi Component.

6. The Regional Development Planning Board (Bappeda) within each Tk IIgovernment will be responsible for day-to-day program management. Main

- 62 - ANNEX 4B

Figuro 4a ~~~~rage 2 of

SULAWESWIRIAN JAYA URBAN DEVELOPMENT PROJECTIMPLEMENTATION ARRANGEMENTS

(SULAWESI COMPONENT)Organzation Structure

co PUOD BAENSM AM DOBWU

I~~~~~~~~~~~~~~~~KI................. . .............. .................... ,.

* ~~~~~cr a~Dr

= nuCTURtAL

L _ C^OX

- W6TRUCTON

TEN K I TKP-U' M

- 63 -

ANNEX 4BPage 3 of 9

functions are the preparation of a multi-year IUIDP Program and coordinationand monitoring of implementation as well as annual budget preparation. Forthis purpose a small local Project Monitoring Office (PMO) will be establisheddirectly under Bappeda.

7. A Local IUIDP Team (Tim Teknis P3KT Tk II) under the authority ofthe Bappeda is to assist to carry out this responsibility. This local IUIDPTeam will have representation from all concerned Tk II departments responsiblefor elements of IUIDP implementation. Due to the nature and periodicity ofcoordination activities, this Team will function as a working group and meeton an ad hoc basis only. Tim Teknis P3KT TK II have been established in all 9TK II.

8. A small Project Finance Office (PFO) will be established under theauthority of the Finance Division in the Sekwilda's Office, which willdisburse project funds, prepare reimbursement requests, maintain expenditureaccounts and prepare financial progress reports and annual statements ofaccounts.

9. Non-water supply projects will be implemented by the Dinas PU andDinas Kebersihan (if any). The Local Water Supply Enterprise (PerusahaanDaerah Air Minum, PDAM) will be responsible for the water supply sub-sector.

10. The Revenue Office (Dinas Pendapatan) will be responsible forreaching the targets for local revenue generation set in the financing planunder the overall supervision of the Local Government Secretary (Sekwilda).The Legal (Bagian Hukum) and Administrative (Bagian Ortala) Divisions of theSekwilda Office will be responsible for the institutional arrangementsrequired for Project implementation.

11. The procurement will be carried out under the authority of theDevelopment Division (Biro Bangda) of the Sekwilda Office.

12. Provincial and national subprojects (if any) are carried out bydeconcentrated agencies from higher levels of government.

C. Implementation Responsibilities of Provincial Governments

13. An IUIDP Steering Committee, as a non-structural unit, is positioneddirectly under the Governor. The Committee's tasks and responsibilities wouldbe to manage, coordinate and supervise Project implementation and to providepolicy guidance. The chairman would be the (Vice) Governor, Sekwilda or Headof Bappeda Vice chairman and secretary are proposed to be respectively theSekwilda, head of Bappeda or Fispra of Bappeda. ?lembers are the heads of thedepartments involved in the IUIDP program.

14. The Bappeda will be responsible for day-to-day management of projectimplementation with the following functions:

- to assist local governments in IUIDP implementation includingpreparation of related funding requests;

- 64 -

ANNEX 4BPage 4 of 9

to monitor and evaluate overall progress of project implementationof all local governments;

to coordinate all IUIDP activities at provincial level.

15. A Provincial IUIDP Team (Tim Teknis P3KT Tk I) will be establishedunder the authority of the Bappeda to assist to carry out this responsibility.This IUIDP Team will have representation from all concerned Tk I departmentsinvolved in IUIDP implementation. Due to the nature and periodicity of itscoordination activities, this Unit will function as a working group and meeton an ad hoc basis.

D. Implementation Arrangements at Central Government Level

16. At Central Government level Project speci.fic responsihilities havebeen defined in line with structural responsibilities of the Departmentsconcerned as described below.

17. BAPPENAS will assist in synchronizing IUIDP, as part of Repelita V,with other national development programmes. It also plays a major role in theannual budgeting process and will assist in ensuring the Central Governmentcontribution (APBN) for the IUIDP Program. BAPPENAS chairs the Inter-departmental Coordination Team for Urban Development (Tim KoordinasiPembangunan Perkotaan - TKPP) which has been established under its authorityin early 1987 to ensure a smooth, well coordinated, planning, programming andimplementation of urban infrastructure programmes. BAPPENAS also supervisesthe IUIDP Management Group (IMG).

18. The Directorate GeneLal of Public Administration and RegionalAutonomy (PUOD) within the Ministry of Home Affairs (Depdagri) will providegeneral supervisory support ior the Project with respect to adequacy of localgovernment staffing, budgeting, financial capability and execution of Projectresponsibilities.

19. The Directorate General of Regional Development (BANGDA),particularly its Directorate of Urban Development (Direktorat Bina PembangunanPerkotaan) will provide supervisory support with respect to the planning,programming and implementation of local development projects. More speci-fically, Directorate General Bangda will be responsible for theadministration, supervision and support of INPRES-funded project components.

20. The Directorate General of Budget of the Ministry of Financeapproves and provides all central government (AFJ'!) budget allocations forIUIDP through its Directorate of Development BudLc t and Directorate cf StateWealth Development and Other Budgets, which administers the routine SDO(Subsidi Daerah Otonom) grants to local governments.

21. The Directorate General of Monetary Affairs through its Directorateof Investment Funds (DDI) will develop and administer the subsidiary loanagreements (SLA) with local governments and enterprises.

- G' -

ANNEX 4BPage 5 of 9

22. The Centre for Financial Analysis ot Local Government assists informulating policies and guidelines on matters related to local governmentfinance. The Directorate General of Taxation administers national taxes. Ofmajor importance to the Project is the Directorate for Property Tax (PBB),which sets policy and manages the tax-object identification, assessment,collection and revenue sharing of the property tax.

23. The Ministry of Public Works is the technical department responsiblefor the development of the Urban Infrastructure Sector. Its DirectorateGeneral of Human Settlements (Cipta Karya) is responsible for the developmentof Water Supply, Drainage, Sanitation, Solid Waste Disposal, KIP and MarketInfrastructure Improvement. The Directorate of Urban Roads Development(Binkot) in the Directorate General of Highways (Bina Marga) is responsiblefor the development of urban roads. These agencies, through their provincialoffices (KANWIL), will provide technical guidance to lower levels ofgovernment regarding the subsector within their area of competence in theProject, will administer the sectoral grant budget (APBN-DIP) for thosesubsectors and will implement subsectoral Project components considered aCentral Government responsibility within the framework of Government Regula-tion 14/1987.

24. The directorate general of Human Settlements (Cipta Karya) in theMinistry of Public Works will be designated as the Project Executing Agency,supported by the other central government agencies exercising their structuralresponsibilities as described above. the local governments and localgovernment enterprises involved in the Project will be designated as theProject Implementation Agencies.

25. At central government level, policy guidance and coordination willbe provided by TKPP which will act as the central interdepartmental steeringCommittee for the implementation of the project. as Executing Agency CapitaKarya will arrange for overall coordination and monitoring through its CentralProject Monitoring Office (CPMO) and Central Project Finance Office (CPFO).

26. At provincial government level policy guidance and coordination willbe provided by the Provincial Steering Committee. As noted above, thenecessary coordination and monitoring will be carried out by the Bapenda Tk Iand by the IUIDP Team Tk I.

27. At local government level policy guidance and coordination will beprovided by the Local Steering Committee chaired by the Mayor/Sekwilda Tk II,while day-to-day coordination and monitoring will be the responsibility ofBappenda Tk II and by the IUIDP technical team supported by PMO and PFO.

- 66 -ANNEX 4BPage 6 of 9

INDONESIA

SULAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

II. Proposed Implementation Arrangement.Irian Jaya Water Supply Component

A. Organizational Structure for Implementation

1. The proposed organizational structure for implementation of thecomponent is shown outlined in Figure 4.B.

2. Responsibility for the management of the project rests with theMinistry of Public Works (MPW) through the Directorate General of HumanSettlements (Cipta Karya), and specifically the Directorate of Water Supply(DAB). Within the Province of Irian Jaya, DAB is represented by theProvincial Water Supply Project Office (PPSAB) which has been established inJayapura for several years. A Project Management Unit (PMU) would beestablished under PPSAB and this PHU would be directly responsible for day-to-day management of project implementation.

3. The Ministry of Home Affairs through the Directorate General ofPublic Administration and Regional Autonomy (PUOD) would play a role withrespect to policy matters and in dealing with local governments.

4. Liaison and coordination would be maintained at provincial levelwith the Provincial Public Works Department (Dinas PU Tk.I) via the ProvincialOffices of MPW (Kanwil). In Irian Jaya, as in several other provinces, theKepala Dinas PU Tk.I is also the Kanwil PU.

5.- The establishment of the PMU will require the appointment ortransfer of additional staff as it is not possible for the existing PPSABstaff to handle the additional responsibilities. In addition to theappointment of government staff, a small team of consultants will be provided.The PHU staffing requirements (both government and consultant) are detailed inAnnex 3 - Technical Assistance. It is expected that many of the requiredgovernment staff will be appointed and/or seconded from central government asthere are inadequate human resources in Irian Jaya.

6. Day-to-day implementation will be handled by Project ImplementationUnits (PIU) to be formed in each project town. Each PIU will have a managerappointed from within the kabupaten Dinas PU or the water enterprise(BPAM/PDAM) who will be directly responsible for all works within thekabupaten. The PIU will be responsible for all civil works includingconstruction supervision, progress certification and reporting, anddisbursement application. At kabupaten level there will be close liaisonbetween the PIUs and the water enterprises; the PIU staff should ultimatelybecome core staff for the expanded water enterprises.

- 67 -

Page 7 of 9

INDONESIA

VAWESI - IRIAN JAYA ~UAN DEVEOPMENT P3tECT

Flure 43 -Iusl_ant.tion Arrangemente

Irian Jay$ Waetr SyseDv C _rutOrmenizatieonl Structure

Ministry Ministryof o

NaeH Affairs Puic Works

Dilrectorate GOeral Divoc rat O elof Public of Hu_n Settl_nts

A4inistration and (C lK Ke)Regionel Autonomy

Irian Joye Provir lei DirectortetProvincial -____-__-__ Off i ce of Wi ofOov-rnnt (Kenw Ie) ettr Sup 'ly

(TX 1) (DUAB)

Public Work I

(Dines PU TX 1)

|s lpet n Provincial ProvincialOovern_ente Mronitoring end Watr Supply

(I INe) D veole_t ____ ProJ et(TX II) (PMDU) (PPSM tUU)

Joyspur Other Towns

(Dinoes PU TK II)

Projc Project

I Ipl_wnt tlen I Ipl_wntetlen |Unit (Flu) t Uito (PIU3)|

L_K s ~~Instruction--- CerlSintotl and Svpport

- 68 -ANNEX 4BPage 8 of 9

7. Some aspects of project implementation will remain with DABincluding:

* Recruitment of conr;ultants;* ICB procurement; and* Establishment of the Provincial Monitoring and Development Unit.

LCB equipment procurement, which is proposed to be packaged for the provinceas a whole, will be managed by the PMU.

B. Particular Irian Jaya Considerations

8. The efficient implementation of viable water eupply systems in IrianJaya will require greater external support than is normal in provinces withmore highly developed public works infrastructure. The Irian Jaya situationis characterized by:

(a) Limited availability of experienced contractors;

(b) A shortage of experienced and qualified supervisory staff;

(c) Logistical difficulties which affect both materials deliveries andthe management of construction;

(d) Past experiences of high water losses and poor constructionpractices.

9. Well organized technical assistance would contribute significantlyto the development of local resources while at the same time helping tomaintain technical standards.

10. The construction supervision and management will be a trainingground for the future water enterprise staff at all levels. A team ofexperienced consultants will provide support to both the PMU and the PIUs.The on-the-job training provided during construction will be integrated withthe training to be provided under the Institutional Development and Trainingsubcomponent.

11. The consultants to be provided under Implementation Assistance willbe attached to the PMU; however, they will spend a substantial amount of timein the subproject towns providing support, assistance and on-the-job trainingto the PIUs.

C. Provincial Monitoring and Development Unit

12. The organizational structure also shows the Provincial Monitoringand Development Unit (PMDU). The role of the PMDU relates more to longer-termsupport for water enterprise operation. It does not relate specifically toproject implementation.

13. The establishment of the PMDU will be initiated under the projectbut not during the first year. In accordance with National policy the PMDU

- 69-ANNEX 4BPage 9 of 9

will be formed within the Provincial Public Works Office (Dinas PU Tk.I).However, it is noted that there are currently very limited water enterpriserelated skills available within the Dinas PU Tk.I and accordingly it will beessential to support the PMDU by the secondment of staff from organizationswith the required skill from DAB and PPSAB.

14. Direct involvement from DAB and particularly the Subdirectorate ofTechnical Development (Subdit Pengaturan) is essential to ensure that the PMDUis adequately resourced. Only limited consultant input in the form of onesenior advisor and short-term specialists (total of 24 manmonths) is proposed.

- 70 - ANNFX 4 C

Daae 1 of 8

INDONESIA

SULAWESI-IRIAN JAYA URBAN DEVELOPMENT PROJECT

SUMMARY 0OPROCUREMENT ARMANOENENTS

(Current Cost in Rp. million)SULAWES! COMPONENT NON-WATZRSUPPLY

Contract Details Total value for Number of ContractCatsaaOr lRD. mi1lion)ICa LC8 Other lcs LCB Othw

UJUNG PANDANG

Civil WorksUrban roads - 28,019 - - 96 -Drainage - 15,971 - - 6 -Solid Waste/sanitation - 2,563 - - 18 -KIP C MIIP - 5,24S - - 14 -

Goods:rucks _ 3 t 11 - - In -Constr. quipment - '314 3 - 2 1Motorbikes - - 10 - - 2Handearts - - 36 - - 5PVC Pipe - - 3 - - 2

Engineering services - - 5,218 - - 50

SUB TOTAL U. PANDANG 55,2P3 5,270 - 146 63

GORONSALO

Civll WorksUrban roads - 9,311 - - 60 -Drainage - 4,801 - - 39 -Solid Waste/sanitation - 372 - - 8 -KIP & MZIP - 777 - - 21 -

GoodsTrucks - - 55 _- 4Constr. Zquipment - - 18 - - 1Sludge Disposal (Zqp) - - 4 I _ 1Motorbikes - - 2 - - 2Handcarts - - 5 - - 4PVC Pipe - - 2 - - 1Trash 8lne - - 3 - - 4Trafflc lights - 20 - - 1

Engineering services - - 804 - - 34

SUB TOTAL GORONTALO - 15,261 913 - 120 52

- 71 - ANNEX 4CPage 2 of 8

Contract Details Total value for Number of ContractCategory (Ro. millianriCe LC8 Other Ica LCB Other

Civil WorksUrban roads - 11.283 - - 41 -Drainage - 2,303 ; - 27 -Solid Waste/sanitation - 625 - - 9 -KIP L MIIP - 1,624 - - 22 -

GoodsTrucks - 40 78 - 1 4Constr. Equipment - - 28 - - 2Sludge Disposal (Eqp) - - 1 - - 2Handcarts - - 9 - - 5PVC Pip- - - 3 - - 1Trash Bins - - 1S - - 4

rngineering services - - 843 - - 37------------------------------------------------------

SUB TOTAL PALU - 15,875 977 - 99 55

KZNDKRj

Civil WorksUrban roads - 2,304 - - 14 -Drainage - 2,057 - - 12 -Solid Waste/sanitation - 691 - - 15 -KIP 6 MI1P - 321 - - 4 -

GoodsTrucks - 108 21 - 2 1Constr. Equipment - 149 14 - 1 1Generators - - S - - 1Sludge Disposal Eq. - - 5 - - 1Motorbikes - - 4 - - 2Hand carts - - 4 - - 2PVC P.pe - - 1 - - 1

Engineering services - - 813 - - 37SUB----TOT-------------------------.-30--867----48-_46

SUB TOTAL [ENDAM SI 5.630 867 - 48 46

- 72 - ANIEX 4C

Page 3 of 8

Contract Details Total value for Number of Contract

CAteoorv tRp. millioniiCe LCB Other CIC LCB Othwr

SITUNO

Civil WorksUrban roads - 1,784 - - 14 -

Drainage - 1,768 - - 12 -

Solid Waste/sanitation - 131 - - 1S -

KIP & MIIP - 732 - - 2 -

GoodsTrucks - 46 14 - 1 1

Constr. Equipmient - 149 30 - 1 2

Sludge Disposal Eqp. - - 4 - - 1

Motorbikes - - 2 - - 2Hand carts - - 1 - - 1

PVC Pipe - - 1 - - 1

Engineering services - - 210 - - 19…-___---_---------------------------------------------

SUB TC-TAL BITUNG - 4,610 262 - 45 27

Civil WorksUrban roads - 8,396 - - 36 -

Drainage - 707 - - 3 -

Solid Waste/sanitation - 234 - - 10 -

K1P & MIIP - 256 - - 6 -

GoodsTrucks - - 47 - 1 3

Sludge Disposal Eqp. - - 5 - - 1

Motorbikes - - 3 - _ 3

Hand carts - - 1 - - 2PVC PlpO - - 1 - - 1

Engineering services - - 576 - - 11

SUB TOTAL BONE - 9,593 633 - 55 21

- 73 - ANNEX 4CPage 4 of 8

Contract Detalli Total valua for Number of ContractCateaory LRo. millionICa LCB Other ICB LCB otLar

PALOPO

Clvil WorksUrban roads - 3,153 - - 54 -

Drainage - 2,516 - - 25 -

Solid Waste/sanitation - 491 - - a -KIP & MIIP - 652 - - 5 -

GoodsTrucks - 50 41 - 1 2Constr. Equipment - - 15 - - 1Motorbikes - 1 - - 1Hand carts - 4 - - 5

Engineering services - 506 - - 28------------------------------------------------------

SUB TOTAL PALOPO - 6,862 567 - 93 37

MANADO

Civil WorksUrban roads - 16,973 - - 34 -Drainage - 4,108 - - 22 -Solid Waite/sanitation - 2,456 - - 14 -KIP & M$IP - 2,158 - - 21 -

GoodsTrucks 1,003 - 12 -Constr. EquipmQnt - - 114 - - 2Generators - - 11 - - 2Sludge Disposal Eqp. - - 11 - - 3Motorbikes - - 9 - - 3Hand carts - - 14 - - 5PVC Pipe - - 5 - - 2Trash Bins - - a - - 2

Engineering services - 2,765 - - 37------------------------------------------------------

SUB TOTAL MANADO 26,698 2,937 103 56

PAREPARE 2)

Civil WorksUrban roads - 4,909 - - 10 -Drainage - 777 - 4 Sanitation - 409 - - 30 -KIP & MIIP - 310 - - 4 -

GoodsSludge Disposal Eqp. - 75 - - 1 -Excavator - 170 - - 1 -

Engineering services - - 384 - - 5

SUB TOTAL PAREPARE - 6,650 384 - 50 5

TOTAL NON WATER SUPPLY 3,781 142,673 12,810 12 75S 362

74 - ANNEX 4CPage 5 of P

TABLE AS.1 - PROCUREMENT ARRANGEMENTSSULAWESI SUB-PROJE '.- WATER SUPPLY SECTORCONTRACT LISTING BY SUPPR0JECT AND CATEGORY

I _ _I.. . . _

ETq 0DESCRIPTION VEAR(Sl NUMBER OF TYPE APPROlXIMATE

CONTRACTS VALUE I1]1_ ILLiOh RUPIAh.4j

A *UFW Camoangn reoairg antd serv'ce 91,95 I NA FA and Shopoing 2,000

o Manado

'o Kem1ar I 1

o Gorontal It I ~I II

, Watarrpone

i 0 Palu

o 9 8it'd mgci Paiopo I I

;9t ISupply and imstaltution of rrec'hanrcal 91194 11 ICS I 4, 50

,and electr,cal equ1pment

o M3nado I 1

o Kcndari Io Gorontalo |

i Watampone I I

'o Palu I I

o Bitung i

0 Palopo ., ! I i I

D ISjppIy of ,pes watves and meters 91!94 30 LC8 is CO

o Mar2do I I

o Kenrdar I i

o Coror taio Iv. Watamponle

to PitluIiI

o Bturrg 1 g

to Palopo

'D ICrvilworka 91/95 30 LCB 14500

i o Manado !| i Kendari i

0o Gorontioj

I , Watampone

io PaluX 0 situng

1 Palopo I

36,000~jOTAL FOR SUB-PROJECT AND SECTOR 71 |

tl~ C&wr.ont pnene ificiding te nctaR Cefltng nelcI.

ANNEX 4CPage 6 of P

TABLE AB.2 - PROCUREMENT ARFNOEMENTSIRAN JAYA SUB-PROJECT - PART A. TOWN WATER SUPPflESCONTRACT LISTING BY SUBPROJECT AND CATEGORY

_____ _______ ~~~~~~~~~31-0.0-W

ITEM DESCRIPTION YEAR(S I NUMBER OF TYPE APPROXIMATE

, I CONTRACTS VALUE [1)1

-. - _________ .---- ~,______________ _____ (MILLiO ARUPAU)

Al CIVIL WORKS BY CONTRACT (LCBI I

I IIIi

'Al 1 I AYAPURA I

'1 Inmtkiworks 91NQ I LCB 3002 Chlor;nstion fcilitis 94I I LCt WI3 r7fmfission mains 92/93 93S4 21 LCt 1,430

4 DLitribution mains 92)9.9394.94)15 3 LC8 1,560, Service reservoirs 929, 93/94 2 LC8 1.2606. Now ewrvic connoetions 92,93,9 US4, 94i 31 LC3 Don

1 7 Buildings, offices, storef, workshop 1 33d4, 94M5 !2___ LC8 270 iI Subtotal i141 | 5.8COi

Al 2 SORPNNG ;

| ~~ ~~~~~I iII1i Rvor intaoe and pumpfng srtation 91A92 I1 LC 3102. Rrnu treatment plant 9 91/92, /94 21 LCB 1.200.3 Pumpmng equiprment nstallation gmA I LC 70! I4 Trsntmlsston mnans 9112 62/93 i 2 I LCB 3b0 I3 O stribution rainsg 9?193 93/4 904AI 3 LC I96 Se.v-ee reservoirs 93/94 t LCB 907 New service conn.ctionrs 934 94/5 95616 3 LC8

8 9.ildio19gs ufces stores worishop 91/92. 93)94 2 LCD 400Subtotci I 1 15 I 4,070

A13 FAK FAK I

¶ Terstosnf plant upgrading and I I LCB 130

ck orlatlon facility2 ,ansmibsion rnains 92/93 I LCB 2003 Cistribution mains i 92/93, 93A4 2' LC8 170

.4. Serviceremrvoirs 92g3 1I LCD U I

.5 Suildings offices. bores, workshop 91/2 192/ - 2 LC ' 270* Subtotal 7----~

Al 4 'NABIRE

,1 Wellf,eld deiopmpfen, pump abtion etc 91/92 LCB 3012. Pumping and chiFinatwon eqipment '91 1 1¶ LC j 40

i nsttbUon I'3 Storage and associtted 92At3 93 I LC4 !

tratnsmission/dlstributfon mains4 Distribution mc'ins 9 9? 5 ens4 5M/96 3 $ LC ¶765 New service connections 'S74 W95 95Al6 3 | LC 170* 6 Buildingt, offices, storee, workthop i S13 33/94 2 Ci lt 330Subtotia Ill 1,670

-... _ _ _ --- ________ I

- 76 - ANNEX 4CPage 7 of '?

TABLE A8.2 - PROCUREMENT ARRANGEMEN4TSRiAN JAVA SUB-PROJECT - PART A. TOVWI WATER SUJPPLIES

CONTRACT LISTING BY SUBPROJECT AND CATEGORY31-Oct-GO

ITEM ~DESCRIPTION YEAR(S) NUMBER OF I TYPE IAPPROXIMATECONTRACTS VALUE [II

- ~~~~~~~~~~~~~~~~~~(MILLION4 RUPIAH)

Al 5 MANOKiWARI

Walt Dimgtm mtal,e and oum'p station' 92193 I LCD 1602 0-urp:rq cHof-matiom equjipmenmt 92113 ¶ I-Cs 40

-,ifitallation,3 , rrnsso mants 9 1)9292193 2! LCD 5101'4 Qlstribui~ton 'rQti' 93194, 94M, 19 3 I LCD 1,0405 Seri'ce reseryoirs gm/9 I LCD 100.5 Nww service connections 93#94 94/95 9519 31 LCD 3306 Suildimqs officeos tores. workshop 23A94 I LCD ___ 40Subtotal 12'24

Al 6 BIAi'

I Snarbiouw Pump Station buildings 92PV3 11 LCD 2002 Pumpmino and chlorination 92193 I LCD o

equipment installattion3 Distribution and trarsmissonm mains 92/9 73)9 94M 3 LCB 'I 13D4 Service reservoirs 92/.19394)95 21 LCD 705 Now. serv,ce connectionis 93/94. 941,95A9116 3 LCD3 270)6 Buddrrgs otfices, stores workshop 9 1/92, 92)93 94(9 3 LCDB. 450Subtotal 1 2240

Al 7 SERUI

Seadirmentation tsnks and 91/92 1 LCD 301:`nc'rnat.on, Isclity

2 Distribution maoins 142)9 93/4.94, 3 LCD 6303 Service reservoir g2m I LCD 60 I

4 New service connections 93194 94095, 95iW 6 3 I LCD 10015 Buildings otfices stores, workshop gm. 93414 2 LCD O- 2510 Subtotal ¶0] ~~-

Al 8 WNAMENA

I1 upgading of treatenwt p4ant 1991/92 II LCD 30.including chiorinatman tactiity

3 Oitptibujtion maman 91/92 92193 i2 I LCD 2704 New sevice connections P3194 94195 9519 3 LCD 405 9tuildings, offices, stores. workshop 92,93 93/94 2 LCD 3____ 20-Subtotal 660,

,Al 9 PMOU FACILITIES

I Duvilinq andsassociated civilworl, s 92413 LCD 410Subtotal I410,

TOTAL FOR PART Al 9 I 19,220

ANNEX 4C- 77 - Page 8 of 8

TABLE A8.2 - PROCURfEMENT ARRANGEMENTSIRFAN JAYA SUB-PROJECT - PART A: TOWN WATER SUPPULESCONTRACT LISTING BY SUBPROJECT AND CATEGC RY

_ _~ ________ ___j___ ,__ _O 1-NfilO0

TfM DOESCRIPTION YEARtSl NUMBER OF TYPE APPROXIMATECONTRACTS VALUE11

_________ I (MILL1ON RUPIAH)

A2 C!9.! .'NC-S BY DAY LASOUR I

__ ~ -_; _ ________ IIi

A2 1 '@pigl.crnont and rpair of ewtimg ervic ! I

conMoct onsIf

,I a Jcpypr 9i 2, 92i MA j DL. 680

2. Sarong g91A2, ju NA OL. 70

3. FatF.k 1 1Af2, 2m I NA i DL! 20

i4 Nabors 9s1t2. 929 I fA DL I 20

5 m.,okgri g 91A2. 92 1 NA O DL 20

S Risk , 9 2jwt NA OL t10

. Srul 911S2. 92J93 NA DL 20

a Wamenua G 192, 920`111 NA DL 30

Sujb-ramI I I 4$ , ~ ~ ~ ~ ~~I I I I

iA2 2 I Rehuabiittimon o existing trnBniSoei s I,and distribtion ystimfs by Task Force

1 .syapura 1t92, 92j i NA DL 40

2 Sofong f 91g 2. OM NA DL 320

.3 Fa. Fak j 19tA2, 92A3 i NA DL fO

; 4. fab.r- 1:i2, t3 N MA DL aOS. Manfkvru I 91A1,92I3 NA DL f0

6 Btofk g!i91/9, m MA DL. 160

7 S.ru I W1921SO N4A DL 30

We Wmeno I 91,92. O NA | fL 30

Sub-ota

TOTAL FOR PARr A2 NA 2,210

s~~~~~~~~~~~~~T T I - ~--- -+---T-- -T-- -- -___

,A3 EQUIPMENT PROCUREMENT I I

I UFWTask Force,equipment g00S1 I 1 SW

2. MSCL pipesmndfttngs2 11 1 2 1 ICO , .3 PVC, GiandOt.A pop"u nd fttitlng21131 i gC901 1 3 1 ICe 6,5704 Sve's osnd afl k ukee rl2l I 0Si I 21 IC 1 1505 Mhchin and ' - a Iquipment 91 i 2 1 IC It 38 S IPvgf^bnr bnka i 901 ¶ 1 iI IIce4 7 'VeIicbs , As required I 2 LCB SIta 3 iAAienelbe equiprnt As s.uur.d MA Shrp 2eY10g

TOTAL FOR PART A3 I 13 1 2i _690_1

;GAMC)i TOTAL FOR PART A 104 012

11i Curront prboeclQuding tax and eontingnce(21 nitial contracts wil include say 70 of requirements for tiret two yers.(31 Service conrection materiale. except for .nitlal rehabilitation, wil be procured later.

- 78 -

ANNEX 4DPage 1 of 7

INDONESIA

SULAWESI-IRIAN JAYA URBAN DEVELOPMENT PROJECT (SIJUDP)

Disbursement Arrangements and Schedule for the IBRD Loan

Funding Channels for the SIJUDP

The IBRD Loan proceeds would be channeled to the SIJUDP Project through thefollowing four methods:

1. IBRD-financed portions of Public Works Department DIPs, to be paidfrom the SIJUDP Special Account (wDIP Rupiah Rekening Ehususw,usually abbreviated to 'DIP Rp RRK). These could consist nf bothamounts to be paid in Rupiah and amounts to be paid in foreigncurrencies, but DIP documents do not distinguish between these twocategories (the division may not indeed be clear at the time of DIPpreparation);

2. IBRD-financed INPRES grant transfers for direct use by localgovernments ("SPABP') also to be paid from the SIJUDP SpecialAccount;

3. IBRD-reimbursement of Central Government Loans to local governmentsand local government enterprises, through the SIJUDP SpecialAccount;

4. Direct Payments in foreign currency by IBRD to contractors (wheredeemed appropriate). These could relate both to Public WorksDepartment DIP budgetary allocations ("DIP Pembayaran Langsungs,usually abbreviated to 'DIP PL') and to on-lending allocations.

The domestically-sourced counterpart funding by government agencies ofdevelopment expenditure within the Project would be channelled through:

5. domestically-financed portions of Public Works Department DIPs('DIP Rp APBN', sometimes also referred to as 'DIP Murni');

6. local government and local government enterprise contr'butionsfrom:

(a) local governments' own revenues and revenues assigned to localgovernments from higher levels ('PADS/PBBI);

(b) Inpres L2ti II grant from central to local governments;

(c) Inpres Jalan grant from central to local governments;

(d) province government grant to local governments (OSBDw);

(e) internal funds of local government enterprises.

- 79 -

ANNEX 4DPage 2 of 7

(f) provincial government budgets;

(g) private sector contributions.

Payments Made in Rupiah

DIP Channel Financing - Central Government Sub-project Components

In the case of components of sub-projects for which central governmentagencies have sole implementation responsibility, procedures would largelyfollow those established for previous IBRD-financed urban projects. The DIPdocument would specify the IBRD-financed share of the sub-project component asRp RK funding together with the domestically-financed counterpart sha!e as RpAPBN funding in accordance with the specified IBRD disbursement percentages.For example, for a DIP relating to one or more civil works contracts, 85percent of each civil works contract sum would be specified as funded from RpRK funds and the balance of the contract amounts, together with all ineligibleexpenditure (for taxes, etc.) would be specified as financed from Rp APBNfunds.

Payments to local contractors would be made through the State Treasury officesin the relevant capital (KPKN) - the contractors would not have to go toJakarta to be paid.

INPRES Grant (SPABP) Channel Financing

Sub-project components to be financed by IBRD loan proceeds passed as grantsto local level through the SPABP channel could also have a counterpartfinancing amount from the local governments' own revenue sources (PADS, normalInpres grants, etc.) or from INPRES Rp KHurni' funds.

Local governments will prepare each year a draft SIJUDP budget submissionsrepresenting their implementation plans for sub-projects to be financed fromINPRES grant in the forthcoming budget year of their approved medium-termprograms (PJMs). These draft SIJUDP budgets would be submitted through theProvinces (vith review by the provincial 'Technical Team) to centralgovernment. After central review by Bappenas, Ministry of Finance andMinistry of Home Affairs, D-G Budget of the Hinistry of Finance would issue anauthority (SKO) to KPKN in the provincial capitals to disburse up to specifiedbumL., to be drawn on the SIJUDP Special Account, for each relevant localgovernment in respect of contract payments properly authorized under localgovernment DIPDA budgetary procedures.

Local governments would then prepare draft development budget authorizations(DUPDA) for the relevant sub-projects, specifying, as Rp RX, the amount offunding to be provided by IBRD through the SIJUDP Sptcial Account, inaccordance with the specified disbursement percenta&es on eligibleexpenditure. The DUPDA would also show the counterpart funding amount(s) andsources(s). In case contributions are to be provided from the localgovernment's own normal revenue sources, the local governments would makeappropriate provisions in their draft development budgets (APBD Pembangunan)

- 80 -

ANNEX 4DPage 3 of 7

for these expenditures and their funding sources. Following APBD approval bythe local Representative Councils (DPRD) and ratification by provincialgovernors, DUPDAs would be approved by Governors with the advice of thepirovincial Technical Teams, and thence by local government mayors/regents,thereby becoming DIPDAs authorizing the implementation of the relevant sub-projects. These procedures are standard in local governments.

Each implementation contract would be written specifying one funding source asbeing from KPKN, representing the IBRD funding share, and one supplementaryfundinp source.

Examples:

1. A civil works contract could specify funding of 70 percent fromKPKN as the IBRD share, plus 30 percent from Bank Rakyat Indonesiare. Inpres Dati II.

2. An equipment supply contract Lwarded to a domestic contractor couldspecify funding of lOO percent of the ex-factory prices from KPKNas the IBRD share, plus the balance of the contract sum,representing local transport overheads and taxes, from Kas DaerahDati II (PADS/PBB) a': the local counterpart source.

For each stage payment the contractor would be paid through the issue of twopayment orders: one drawn on the appropriate treasurer for local counterpartfunding source, and one issued by the KPKN in the relevant provincial capital.Before certifying the latter payment order, KPKN would verify that thecounterpart payment order(s) had been drawn for the correct amount inaccordance with the specified IBRD financing proportion. DG Budget of theMinistry of Finance would issue a Circular Letter to KPKN in the provincialcapitals instructing them to undertake this duty of verifying that thecounterpart funding contribution has been made. Again, local contractorswould not have to gc to Jakarta to be paid.

Central Government Domestic Lending Arrangements

It is agreed that these loans would be made using the Domestic LendingArrangements (DLA) of the Ministry of Finance Directorate of Investment Funds(MOF-DPI). DDI would advance an initial tranche of money for sub-projectpayments and be 90 percent reimbursed from the Special Account on the basis ofthe requisite payment evidences and supporting documentation (see'reimbursement from, and replenishment of, the Special Account' on page 6).

Budgetary authorization for the Special Account drawdowns would be providedthrough the Rencana Anggaran Tahunan (RAT) proeedure. DJB would orderadvances of monies from RDA to a designated Sub-project Account in a localbank, on which payment orders would be drawn in favor of contractors/suppliersby the sub-project implementing agency (Pimpro/Bendaharawan Proyek). Thelatter would then submit copies of the payment orders and other supportingdocumentation to DJB (DDI) for further advances and for DLA reinabursement fromthe Special Account.

- 81 -

ANNEX 4DPage 4 of 7

(Note: DJB (DDI) are urwilling to agree to loans for projects which wouldfinance procurement made under bulk purchase contracts covering a number ofborrowers in which those borrowers are not directly-contracting principals.DDI also has reservations about an arrangement under which each borrowingregional government or regional enterprise concludes a separate procurementcontract with a single nominated supplier selected on their behalf under opencompetition).

Maintenance of PFAMS Records

Implementing agencies (Pimpros) would be responsible for notifying PFOs in therelevant local governments of all payments made - through the provision ofcopies of certified payment orders (SPM) - so that the payments can berecorded in the Project Memorandum Accounts (PFAMS). These copy paymentorders must be provided individually at the time the transactions take place.

Payments Made in Foreign Currencies

Where deemed appropriate, certain technical assistance, training and ICBprocurement contracts would be paid in foreign currency. In certaincircumstances the payments would be made directly by IBRD; in other cases theywould be made from the SIJUDP Special Account.

Where the foreign currency payments relate to Department of Public Works DIPbudgetary allocations, the DIPs would be drawn up in an analogous way to theprocedures described above under wpayments made in Rupiah'. In some cases itcould happen that a single DIP document specified funding from all modes,namely:

DIP Rp RK (denominated in Rupiah, but including the estimated Rupiahequivalent of possible foreign currency payments made from the SIJUDP SpecialAccount);

DIP Devisa Pembayaran LangsuA.g (denominated in US Dollars, irrespective of theactual currency of payment);

these together representing the IBRD funding share in accordance with thespecified IBRD disbursement percentages, plus

DIP RP APBN,

representing the central government domestic counterpart share.

Where the foreign currency payments relate to sub-project components financedunder the envisaged central government on-lending scheme described above, theRAT budgetary authorization documents would be drawn up in a manner analogousto that just described for DIP documents. The RATs would be drafted byproject implementing agencies of the borrowers (Pemda Tk II or BUMD) andsubmitted in the first instance to DDI.

- 82 -

ANNEX 4DPage 5 of 7

Direct Payment Arrangements

Established standard procedures would be followed whereby IBRD makes thepayments to the contractor on the application of the relevant SIJUDPimplementing agencies through Bank Indonesia. In the case of direct paymentsrelating to contracts financed under on-lending agreements, implementingagencies would submit the payment applications to Direktorat Dana Investasi(DDI) in the Ministry of Finance, who would pass them on to Bank Indonesia.

IBRD (RSI) would periodically notify CPFO of all direct payments thus made.CPFO would in turn be responsible for notifying PFOs in each local governmentof the relevant direct payments made in relation to their local government'sPJM, so that the payments can be recorded in the Project Memorandum Accounts(PFAMS). In the case of direct payments relating to contracts financed underon-lending agreements, CPFO would also notify DDI in order that the paymentscan be recorded in the borrowers' loan accounts.

Payments from the Special Account

Payments for eligible expenditures would, on application by the relevantSIJUDP implementing agencies, be ordered by DG Budget (TUA) directly from theSIJUDP Special Account. For such payments relating to contracts financedunder on-lending agreements, implementing agencies would submit the paymentapplications to DDI, who would in turn forward them to TUA. The processnormally involves the issue by TUA of two payment orders (SPM): the first SPMspecifies the payment amount in the relevant currency, together with theestimated Rupiah equivalent; a later, supplementary SPM is issued to adjustthe Rupiah equiv2ient to the actual figure notified by Bank Indonesia at thetime of payment. (This latter SPM shows the Rupiah adjustment only, and can,of course, be for a positive or negative amount). In the case of suchpayments relating to DIP authorizations, the official copies of these two SPMintended for the Ministry of Public Works would be sent by TUA to theCPFO/i, which would be responsible for (a) sending photocopies to the PFO inthe relevant local government so that the transaction can be recorded in thePFAMS, and (b) sending on the official copies to the relevant DG in theMinistry of Public Works. In the case of such payments relating to RATauthorizations in respect of the envisaged on-lending arrangement, theofficial copies of the two SPMs would be sent by TUA to DG for MonetaryAffairs (DDI) who wculd record the payment in the appropriate borrower'saccount and also send photocopies of the SPMs to the PFO in the relevant localgovernment.

/1 Authority for TUA to do this, and for the role of the CPFO in thisrespect, will have to be provided by the Ministry of Public Works,either through an SK of the Secretary-General, or through a joint SX ofDir-Jen Cipta Karya, Bina Marga and Pengairan.

- R3 -

ANNEX 4DPage 6 of 7

Reimbursement from and Replenishment of the Special Account

KPRN, through the local branch of Bank Indonesia would directly draw on theSIJUDP Special Account in respect of payments made under the DIP (Rp RK)channel.

Reimbursements from the Special Account to the DLA in respect of payments madeunder the envisaged central government on-lending arrangement would be orderedby DG Budget (TUA) on application of DDI supported by the followingdocumentation:

(i) the payment orders (SPMU) drawn by implementing agencies(namely, Pemda Tingkat II and PDAM) on the local sub-projecton-lending bank accounts;

(ii) certificates of Performance (Berita Acara) issued byimplementing agencies;

(iii) copy of IBRD No Objection Letter, in the case of civil workscontracts with a value of US$ 500,000 equivalent and over, andgoods supply contracts with a value of US$ 200,000 and over.

On the application of D-G Budget (TUA), IBRD would replenish the SpecialAccount quarterly or when the balance in the Special Account becomes 50percent of the initial deposit, whichever occurs sooner in respect of thesedrawings. In the c^se of civil works contracts with a value of US$ 500,000equivalent and over and goods supply contracts with a value of USS 200,000equivalent and over, and all contracts for consultancy services and training,the replenishment applications would be supported by the followinEdocumentation:

(i) the payment orders (SPM or SPMU) issued by KPKN offices, ordrawn on local sub-project on-lending bank accounts, or issuedby TUA in respect of foreign currency payments from the SpecialAccount;

(ii) certificates of Performance (Berita Acara) issued byimplementing agencies;

(iii) copy of IBRD 'No Objection Letter'.

In the case of civil works and goods supply contracts/order3 with values belowthese limits, the replenishment applications would be supported by Statementsof Expenditure (SOE). The detailed supporting documentation in respect ofSOEs would be retained by TUA and implementing agencies, mnd made availablefor review by IBRD on request.

- 84 _

ANNEX 4DPage 7 of 7

INDONESIA

SULAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

Disbursement Schedule(S million)

Estimated DisbursementsSemester Cumulative Profiles /a

Semester ending Amount Amount 2 (Cum. 2)(1) (2)

1 06/91 0.0 0.0 0.0 0 02 12/91 6.3 6.3 6.3 3 2

3 06/92 12.8 19.1 19.1 10 74 12/92 13.6 32.7 32.7 18 14

5 06/93 14.0 46.7 46.7 26 266 12/93 11.5 58.2 58.2 34 37

7 06/94 9.7 67.9 67.9 46 468 12/94 8.8 76.7 76.7 58 52

9 06/95 7.6 84.3 84.3 70 5810 12/95 7.0 91.3 91.3 82 64

11 06/96 5.0 96.3 96.3 90 7012 12/96 /b 3.7 100.0 100.0 94 76

13 98 8114 100 85

15 9016 96

17 100

/a (1) Urban sector profile for Asia.(2) Urban sector profile for Indonesia.

/b Loan closing date.

Notet The project disbursement schedule is sherter than the standard profiledue to a number of features which have been incorporated into thisproject to accelerate loan disbursements: (i) first year detaileddesigns and tender documents will be completed before loan effectivenesswith funding for this work trom the Japanese Grant Facility; (ii) thetechnical teams at the local government level which will be responsiblefor implementation, were fully involved during the preparation phase;(iii) local counterpart funds are being included in the annual governmentexpenditure budgets; and (iv) there is no national-level TA which in thepast tended to lengthen the loan disbursement period.

- 85 - ANNEX 4Rrage I of 1

INDONESIA

SJLAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

Key Implementation ar.d Performance Indicators ard Reporting Systems

Rep.: ting lafrequency and

Indicators responsibility Reporting to:

1. Conformity of annual budget allocation with annua.approved expenditure programs and financing (1) PFO (1) CPFOplans (2) CPFO (2) TKPP/IMG

and IBRD

2. Conformity of actual expenditures with annualbudget allocations (1) PFO (1) CPFO

(2) CPF (2) TKPP/IMGand IBRD

3. Physical progress per local government and quarterlywater enterprise (1) PMO/PHU CPMO

(2) CPMO TKPP/IMGand IBRD

4. RKL/RPL Implementation annual(1) PMO/PHU (1) CPMO(2) CPMO (2) TKPP/IHG

and IBRD

5. Water enterprise financial targets annual(1) PMO/PHU (1) CPHO(2) CPMO (2) TKPP/IHG

and IBRD

6. Local government revenue improvement annualtargets and achievements (1) PMO (1) CPMO

(2) CPMO (2) TKPP/IHG

7. Loan disbursement targets quarterlyCPFC TKPP/IHG

and IBRD

d. Consulting services implementation quarterlyschedules, particularly assignment starts CPMO TKPP/IMG

and IBRD

9. Procurement schedules quarterly(1) PMO/PHU (1) CPMO(2) CPHO (2) TKPP/IMG

and IBRD

/a PMO refers to the Project Monitoring Offices at the local government level inSulawesi PHU refers to the Project Management Unit in Irian Jaya.

- 86 -

AANN.P 4Page 1 of 2

INDONESIA

SULAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

SUPERVISION PLAN

Bank Supervision Input

1. The staff inputs indicated in the table below are in addition toregular supervision needs for the review of quarterly progress reports.procurement documents and actions, correspondence, etc. These routinerequirements at Bank headquarters are estimated to be about six staff weeksduring PY92 and FY93 and approximately four staff weeks per year thereafter.Staff input during the field supervision is indicated in Table 1. Accordingly,the total Bank supervision input is estimated at about 20 staff weeks annuallyduring FY92 and FY93, and about 15 staff weeks during FY94 and FY96.

GOI's Contribution to Supervision

2. Progress reports will be submitted as follows:

(a) generally following the format being used for Loan 2932-IND (FirstJabotabek Urban Development Project - JUDP I);

(b) on a quarterly basis and within 45 days of the end of each quarter,with the first report for the period of July through September 1991due by November 15, 1991.

(c) prepared by CPMO using inputs from all implementing agencies.

3. Overall project monitoring and coordination will be theresponsibility of CPMO in DGCK. Review meetings with key representatives of themain implementation agencies will be beld semi-annually in May/June (in Jakarta)and in November in the field. The meetings in Jakarta would be chaired by theSecretary of TKPP; all meetings would be attended by a serior representative ofDGCK, which Is responsible for overall project supervision by the CentralGovernment.

4. DGCK, assisted as necessary by TKPP, will also be responsible forcoordinating arrangements for Bank supervision missions and for providing supportrequired by Bank missions.

- 87 -

ANNEX 4FPage 2 of 2

Table 1: BANK SUPERVISION INPUT

Approximate Expected Skill Staffdates Activity Requirements Inputs (SW)

11/91 First Supervision Mission Financial Analyst 8.0(Project launch and extensive Municipal Engineerfield visits) Sanitary Engineer

Environmentalist

5-6/92 Supervision Mission Financia' Analyst 6.0Municipal EngineerSanitary Engineer

FY92 Headquarters 6.0

11/92 Supervision Mission (with Financial Analyst 8.0extensive field visits) Municipal Engineer

Saaitary EngineerEnvironmentalist

5-6/93 Supervision Mission Financial Analyst 6.0Municipal EngineerSanitary EngineerEnvironmentalist

FY93 Headquarters 6.0

11/93 Supervision Mission Financial Analyst 3.0Municipal EngineerSanitary Engineer

FY94 Headquarters 4.0

5-6/94 Mid-term Review Mission Financial Analyst 8.0(including plans for prepara- Municipal Engineertion of PCR) Sanitary Engineer

Envirormentalist

FY95-96 Supervision Mission and 15.0Headquarters

- 88 -

ANNEX 4GPage 1 of 5

INDONESIA

SULAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

SULAWESI COMPONENT

Operations and Maintenance of Urban Infrastructure and Services

1. Key facets of the agreed approach to strengthening operations andmaintenance (O&M) activities for infrastructure and services covered by theSIJtUDP expenditure programs in each local government include: (&) Estimatesof required O&M expenditures (by subsector); (b) Analysis of currentcapabilities for O&M; (c) Installation of POMMS in local governments; (d) PMDUstrengthening for water enterprise O&M improvement; (e) Development ofprovincial public works capacities to assist O&M; (f) Development of annualO&M programs (with appropriate links to institutional and revenue improvementplans); (g) Revision of Local O&M budgets and financing (MNA-KEPMIN No.5/1990); and (h) Recommended monitoring and supervision indicators.

Estimates of Required O&M Expenditures (by subsector)

2. Project preparation efforts for O&M elements in each subsector beganwith the review of technical memoranda (prepared for EJBUDP) describing unitcosts for O&M activities for existing and new infrastructure. Preliminaryinventories of existing infrastructure, the functional classification of thesesystems to assign O&M responsibilities among central, provincial and localgovernment units, and estimation of curLent conditions and deferredmaintenance needs were all undertaken in the initial preparation stages. Foursubsectors (of the seven covered by IUIDP guidelines) emerged as the focalpoints of O&M efforts: water supply, roads, drainage and solid waste. Withinthe sanitation subsector, the empty:.ng of septic tanks and disposal of sludge(by public or private operators) is the principal O&M issue. On-sitesanitation is the preferred approach in almost all localities (except forManado, where a detailed study for a sewerage system including O&ir5requirements is proposed). For KIP/MIIP subsectors O&M is generally presumedto be a 'communityft responsibility, though care must be taken to ensure thatprovision is made for operating water taps, public toilets (MCK) and otherKIP/MIIP facilities, and to confirm that local governments will assist inestablishing 'merchants' associations, or provide other specific arrangementsfor MIIP O&M.

Analysis of Current Capabilities for O&M

3. The estimated requirements for O&M (from paragraph 1 above) werethen compared to current O&M practices and capabilities in four basicrespects: (a) manpower available with the responsible agency (as part ofinstitutional assessment); (b) budget levels provided for O&M activitiesduring the past five-year period; (c) equipment and facilities availableversus needs; and (d) preliminary identification of the potential forcontracting OWH activities in each subsector.

- 89 -

ANNEX 4GPage 2 of 5

4. This analysis is summarized as follows:

(a) for subsectors other than water supply, the local governments weregenerally providing between 20 percent and 40 percent of theestimated O&M requirements, and had substantially impairedcapabilities due to shortage of trained manpower, adequate equipmentand spare parts, etc.;

(b) water supply enterprises were highly variable in their O&Hperformance, but generally provided 50 percent to 80 percent ofneeded O&M for their systems, with inability to raise tariff levelsand shortage of trained manpower citek' as the key obstacles; and

(c) most local governments had not seriously explored the option ofcontracting for O&M, as GOI regulations prohibit contracting fromthe "rout3ne" component of GOI budgets (as opposed to the"development" component from which contracts are normally financed).(However, a few local governments were contracting road maintenanceand some were willing to consider solid waste collection on a"franchise' basis covering designated urban communities (typicallyupper income areas), following the success experienced by the Cityof Surabaya with this approach.) Drainage channel cleaning wasanother area of O&M discussed for potential contracting, with amixed response by local governments.

5. The analysis resulted in the definition of current levels of O&Mexpenditure for each local government ("current O&M' in the expenditureprogram), and two types of proposed additions or 'incremental' O&Mexpenditures: (a) a graduated increase of O&M budget to reach estimatedrequirements for current infrastructure systems and (b) O&M expenses necessaryfor newly constructed and rehabilitated facilities. Responsibility forbudgeting the required O&M expenditure was assigned based on the functionalclassification of facilities (particularly for roads and drainage) betweencentral, provincial and local governments. However, both central (especiallyDGBM) and provincial agencies frequently arrange for lower level units toexecute O&M budgets, and execution responsibilities for budget allocations inthese cases must be agreed annually.

Installation of POMMs in Local Governments

6. The Performance-Oriented Maintenance Management System (POMMS) wasoriginally developed with Bank assistance for the Urban V project cities; USLIassistance was used to refine and extend POMMS to additional cities (eight arenow covered) and develop improved local government budgeting proceduresassociated with POMMS implementation. Ujung Padang is the only SIJUDP projecttown included among the initial POMMS cities.

7. Further progress in fully developing the POMMS approach e.s an O&Mprogramming and management technique for all non-water supply infrastructurehas recently taken two major steps forward:

- 90 -

ANNEX 40Page 3 of 5

(a) The USL and Urban V p,iject supported a 'simplifioed version ofPOMMS for application in medium-to-small urban areas, simplifying

inventory procedures and applying uniform performance standards,rather than the case-by-case methods used in the large cities.

(b) The Minister of Home Affairs in January 1990, issued a Decree

(KKEPMIN No. 5/1990) instructing the fully implementation of POMMS

in the eight pilot cities and the preparation of budget documents in

revised formats which explicitly identify O&M expenditures for the

first time in Indonesia. The KEPMIN alsL commends the POMMS

approach for consideration by other local governments and providesguidelines for its implementation and associated budgetingprocedures.

The proposed project would install the simplified version of POMS in all nine

project towns, and utilize these local government systems as training

opportunities for officials of other local governments and provincial

officials.

PMDU Strengthening for Water Enterprise O&M Improvement

8. Within the water supply subsector, which is not covered by POMMS,

the focal point of GOI-Bank efforts to improve water enterprise O&W has been

the Provincial Monitoring and Derelopment Units (PMDU). The PMDUs are

established within the provincial public works departments (DPUPs) with

responsibility to monitor the full range of water supply service provision by

all local enterprises, with particular attention to those in transition from

the status of BPAM. The PMDUs will assist water enterprises in evaluating

staffing, training and other strengthening requirements (e.g., budgeting

procedures, chemical and supplies management, etc.) to improve operationaleffectiveness and efficiency. The PMDU is also charged with assisting PDAM

units with calculation and justification of appropriate user tariffs to assure

adequate financirg of system operations and orderly expansion, and to assist

in making appropriate arra..gements for operation of public water taps in low-

income areas (e.g., under the KIP program) which has been typicallytroublesome for many enterprises. PMDU also serves to coordinate local staff

participation in training programs for operational and management personnel of

the water enterprises. The proposed project includes technical assistance to

strengthen the capacity of PMDU units to perform these central activities

during the project implementation period.

Development of Provincial Public Works Capacity to Assist O&M Programs

9. The DPUPs have staff on branch offices (cabang dinas) in each local

government. The increasing role of local governments in implementinginfrastructure programs, and the announced intention of the Ministry of Public

Works to second substantial numbers of their current staff for provincial

service, creates an opportunity to revise and strengthen the role of the DPUP

in assisting local government O&M program development. The heads of DPUP

units have agreed to assign members of the branch-office staff to receive

training in POMMS and PMDU O&M procedures, to create the capacity to support

- 91 -

ANNEX 4GPage 4 of 5

local governments in preparing and executing O&H activities, the primary need

is to strengthen the O&H management assistance capacity for the PLP subsectors

(i.e., d;ainage, solid waste management and sanitation). DGCK has agreed to

assist in the creation of this capacity.

Development of Annual O&H Programs for Each Local Government

10. The preceding activities are necessary preparatory steps to provide

local governments with the background and resources to develop annual O&M

programs covering all infrastructuire subsectors, within the constraints of

current manpower and budget resources. The provincial DPUPs and PMDUs would

assist the local governments to prepare annual O&M programs, and to monitorand support their execution. The POMHs consultants would review and assistDPUP to establish the format the orocedures for preparation and monitoring of

the annual programs. One of the most significant aspects of this initiative

would be the opportunity to discuss manpower and financial planning for OLM in

each subsector with every active local government in the program.

11. Shortages of trained manpower will create opportunities to discuss

contract O&M schemes with the local governments. The recent revision of

INPRES Data II (block grant) regulations to allow up to 25 percent of these

transfers to be used for maintenance and rehabilitation contracts should alsoprovide flexibility in constructing the annual programs. The linkages with

institutional revenue improvement plans to increase local manpower and revenue

will also be specifiLally discussed in this annual review to assureconsistency and improve local government management of the O&M agenda.

Revision of Local Government O&M Budget Procedures

12. Within the context of the above-noted MHA KEPHIN No. 5/1990 (see

para. no. 3) the framework has been proposed for a revised format andclassification of local government annual budgets. The instruction requiresthe eight pilot local governments (and encourages other) to prepare "parallel'

budgets in addition to "basic' (traditional) local budget. This new parallelbudget has three major categories: (a) administrative overhead (salaries,administration, etc ); (b) O&M of public facilities and service systems; and

(c) development projects (including design and supervision overheads).

13. This structure represents a major step in making O&M budgetingtransparent and monitorable, as opposed to the current general 'routine'category (combining wa' and 'b' above) in which line items contain a mixture

of funds and functions. MHA/PUOD staff indicate that it is the intention of

GOI to convert the entire local government budget systehm to this new formatafter a period ef parallel operation. Project support for municipal financial

management would assist in this parallel budgeting and accounting process in

local governments and provide appropr'.ate formats and instructions for use by

other local governments with the guidance of provincial SEKWILDAs.

O&M Monitoring Indicators

14. Monitoring indicators would include the following:

- 92 -

ANNE: 4GPage 5 of S

(a) preparation of annual maintenance program and budget per MAM Kepu'nNo. 5/1990;

(b) actual O&M expenditures per subsector versus target in expenditureprogram;

(c) installation of POMMS - Portion of O&M expenditures based on POHKS;

(d) level of deferred maintenance and rehabilitation contractsExpenditures v. Level of Routine O&M Expenditures;

(e) portion of routine O&M performed under contracts (by subsector);

(f) increase in O&M expenditures (total compared to increase in TK ItPADS; and

(g) actual measurably improved O&M of infrastructure.

- 93 -

ANNEX 5Page 1 of 1

INDONESIA

SULAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

Local Government/City Profiles

Urban Population (thousand)City Administrative Status 1990 1995 (est.)

in Sulawesi

Gorontalo Kotamadya 54 60Bitung Kotamadya 35 39Manado Kotamadya 237 253Palu Kota Administratip 107 128Kendari Kota Administratip 68 84Ujung Pandang Kotamadya 764 849Watampone Kecamatan 29 30Palopo Kota Administratip 58 70Pare Pare Kotamadya 79 81

in Irian Jaya

Biak Kecamatan 40 49Jayapura Kabupaten 120 165Sorong Kecamatan 80 107Fak Fak Kecamatan 21 /6Nabire Kecamatan 20 26ManolX vari Kecamatan 53 86Wamena Kecamatan 7 9Serui Kecamatan 16 19

- 94 -

ANNEX 6Page 1 of 14

INDONESIA

SULAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

TECHNICAL ASSESSMENT

A. General Technical Standards and Criteria for Subproject Selection,Planning and Design

(adapted to suit local conditions according to MPW guidelines)l/

1) Sector Selection Criteria

Water Supply : Demand, water stress area, industrialdevelopment, tourism

Drainage : Flooding, deferred maintenance, increasedrunoff, inadequate capacity

Solid Waste : National guidelines regarding coverage forhigh densities, environmental and healthconsiderations

Sanitation : National guidelines regarding coverage forhigh densities, environmental and healthconsiderations

Roads : Average daily traffic, congestion, trafficflow constraints, road condition, accidents,new land developments

KIP : National policy for basic services, localgovernment initiatives, poor environmentalconditions, community willingness to operateand maintain infrastructure

MIIP : Service deficiencies, local governmentinitiatives, environmental anid health consid-erations

1/ All standards and criteria follow MPW guidelines which have been reviewedand found acceptable by the Bank. Details are provided in the ProjectFile.

- 95 -

ANNEX 6Page 2 of 14

2) Subproject Design Criteria

(a) Water Suppl1

Planning:

- Priority for rehabilitation and optimum use of existing systems- Priority for reduction of water losses and leakages- Ability and willingness to pay for water supply- Ad3quate income for piped water supply- Demand for special areas (e.g., tourism needs)- Planning period of 10 years- Optimum system selected on basis of minimum present value of total

costs over project life taking a discount rate of 10 percent- Environmental impact assessments, as appropriate.

Engineering Design:

-Vater quality - Indonesia and WHO permissiblestandards

Maximum pressure - 7.5 bar in the distribution system

Minimum pressure - 1.0 bar in the distribution systemover a 24 hour period

- Peak day demands - 1.15 x average day demand

- Peak hour demands - 2.00 x peak day demand

(b) Drainage

Planning:

City drainage planning focuses initially on primary and secondarydrainage, and local flooding. Major flood control works are theresponsibility of central or provincial authorities. Urban drainagecoverage target is 60 percent in Repelita V. with 100 percent coverage byprimary and secondary systems. Optimizat.on of existing drainage systems.Major drainage works to be undertaken on the basis of drainagemasterplans

Design:

Q - F x C x I x A, where Q - discharge, C-coefficient of roughness,I - rainfall intensity and A - catchment area

Return period of design stotm - 5 yearsMinimum velocity of flow in channels - 0.5 meters/second

m4nimumHydraulic design - Manning's Formula

-96 -

ANNEX 6Page 3 of 14

(c) Solid Waste Services

Planning:

Based on environmental and health considerations, demand and willingnessto pay. High priority for communities with densities over 200person/hectare.

Design standard:

Population density greater than 200 persons/ha, 100 percent service;population density between 100 person/ha and 200 person/ha, 75 percentservice; no service yet for density less than 50 person/ha; and 100percent service for commercial areas and markets.

Refuse generation: 3.15 liters/capita/day for medium towns; 1.85liters/capita/day for small towns

Disposal by sanitary landfill: environmental impact assessmentsrequired.

Design:

Modular system as per DG Cipta Kary. guidelines.

(d) Sanitation

.lanning:

Eighty percent coverage of urban population by 1995 (Repelita V).

- Sewer systems may be considered for densities in excess of 200person per hectare. Systems include conventional sewers, small boresewers or shallow sewers.

- All other areas to have on-site systems.

Criteria:

1. Areas with ground water table less than 1.5 meters

a. Population density greater than 150 persons/ha - 100 percentservice level, using type Al (MK-5 KK + septic tank andanaerobic filter) or type Bl (WC/JK + septic tank and anaerobicfilter)

b. Population density less than 150 person/ha - 80 percentservice, type Al or Bl facility.

- 97 -

ANNEX 6Page 4 of 14

2. Are2s with ground water table between 1.5 m and 5 m

a. Population aensity greater than 200 persons/ha - 100 percentservice level, type A (MK-5 KK + septic tank and anaerobicfilter) or type Bl (WC/JK + septic tank and anaerobic filter)

b. Populationi density 150 - 200 person/ha - 80 percent servicelevel type B (WC/JK + septic tank and soakaway trench)

c. Population density less than 150 person/ha - 60 percent servicelevel using type B facility

3. Areas with ground water table greater than 5 meters

S. Population density greater than 200 person/ha - 100 percentservice level using type A and type B2 facility

b. Population density 150-200 person/ha - 80 percent service levelusing type B facility

c. Population density less than 150 person/ha - 60 percent servicelevel using type C facility (soak pit with leaching pit)

4. Water consumption for pour flush latrines taken as 5 lpd. Sludgegeneration in pour flush latrines is 30 led.

All according to DG Cipta Karya Guidelines.

B. Technical Description 1Hon-Water Supply Subprojects(SULAWESI Component)

1. General

1.1 The non-water supply physical infrastructure investments constitutea well balanced and fully integrated program of infrastructure improvements,covering - in accordance with national IUIDP objectives and guidelines-theurban roads, drainage, solid waste, sanitation, Kampung Improvement Program(KIP) and Market Infrastructure Improvement Program (MIIP) subsectors. Thescope of the subprojects has been determined by the amcunt of capitalinvestment funds available after covering essential O&M expenditures. Therelative priorities between subsectors have been established based on theseverity of infrastructure deficiencies and the magnitude of the expectedbenefits; special priority has been accorded to support of economic activitiesand poverty alleviation. Improvement of environmental conditions was alsogiven high priority. Subprojects were conceived as logical units ofinvestments which will yield benefits when implemented as one activity.Details on each of the six subsector are given below.

- 98 -

ANNEX 6Page 5 of 14

2. Urban Roads

2.1 In determining priorities in the urban roads subsector the followingguidelines have been used:

(a) first priority is given to upgrading and improvement of existingmain road sections; artery and collector roads rather than localroads (Repelita V priority).

(b) high priority is also given to prevention of immediate damage toinstallations ad network sections and making up for deferredmaintenance.

(c) expenditures related to expansion of the existing road network havereceived second priority.

(d) funds requirements for adequate annual O&M expenditures rank abovenew capital expenditures; only if funds for recurrent expendituresare assured, have investments in network improvements beenconsidered.

2.2 Planning criteria, design standards and unit costs are generallybased on National IUIDP and DG Bina Marga guidelines. Detailed documentationis provided in th rZJjB UDP Technical Memorandum Urban Roads, November 1988.

3. Drainage

3.1 The drainage system comprises main rivers, primary drainagechannels, secondary and tertiary drainage. Emphasis is on rehabilitation andcleaning of the existing network, with extensions primarily serving toincrease the effectiveness of the existing system. (Primary drainage floodcontrol works in Ujung Pandang are covered under on-going OECF assistance).

3.2 Planning criteria, design standards and unit costs are generallybased on national IUIDP and DG Cipta Karya guidelines. Detailed informationis provided in the EJ/B UDP Technical Memorandum City-Wide Drainage, November1988.

4. Solid Waste

4.1 Solid waste disposal subprojects focus on the most denselypopulation areas of the towns concerned: areas with a density of over 20'persons/ha have priority in the program, which tries to amelioratedeficiencies in the existing solid waste collection and disposal service,based on an assessment of demand. The solid waste ccllection system is basedon an approach adopted nation-wide in accordance with the National Solid WasteManagement Strategy (March 1989). Priority is given to the improvedoperations of available equipment, and only essential investments in newvehicles are proposed. Development of new waste disposal sites (landfills)with adequate capacity is also given high priority.

- 99 -

ANNEX 6Page 6 of 14

4.2 Plan..ing criteria, design standards and unit cos:s which are basedon national IUIDP and DG Cipta Karya guidel nes. , 7etailed information isprovided in the EJ/B Technical Memorandum Solid Waste Disposal ManagementSystem, November 1989.

5. Sanitation

5.1 Similar to the solid waste programme the sanitation program givespriority to densely populated areas with densities of over 200 people/ha. Theprogramme aims to upgrade existing, multi and single family sanitationfacilities (MCKs, multi-family latrines, septic tanks), provides newfacilities of a similar nature, equipment to empty and clean the facilities,disposal sites, supporting feEsibility studies for sewer schemes, andoperation and maintenance expenditure and information campaign expenditure.The recommendations of the National Strategic Plan for the Human Waste andWaste Water Disposal subsector for Urban Areas (January 1989) have been takeninto consideration. Planning criteria, design standards and unit costs aregenerally based on IUIDP and DG Karya guidelines, detailed information isprovided in the EJ/B Technical Memorandum Human Waste Disposal ManagementSystem, November 1989.

6. KIP

6.1 The Kampung Improvement Program (KIP) provides micro-infrastructureat kampung neighborhood level, including access roads, footpaths, smralldrains, MCKs, water stand pipes and solid waste handcarts and transferstations. For several TK II re-KIP is provided for kampungs that had a KIPprogram implemented more than 10 years ago.

6.2 Planning criteria, design standards and unit costs are based cnIUIDP and DG Cipta Karya guidelines.

7. MIIP

7.1 The Market Infrastructure Improvement Programme (MIIP) providesmicro infrastructure (similar to K'P) in the market areas. Planning criteria,design standards and unit costs are based on IUIDP and DG Cipta Karyaguidelines.

C. Technical Description of Water Supply Subprojects(Sulawesi Component)

8.1 Water supply sector reports hal been prepared for the towns of (1)Bitung; (2) Watampone (Bone); (3) Palu (Donggala); (4) Gorontalo; (5) Palopo(Luwu); and (6) Manado.

Review of Water Demand Projections

8.2 In all above project towns available project documents and executedadditional surveys were reviewed to assess present service levels, managementcapacity, status of water supply facilities, desire and willingness to pay forwater svpply and per capita demand. The proposed projects based on the

- 100 -

ANNEX 6Page 7 of 14

reviews aze technically sound and would provide the least cost solution tosatisfy future water demand. As most of tie towns have high unaccounted forwater, special attention has been paid to design leakage reduction campaignson n case by case basis in relat.on to systems operation, design, age andfacilities and maintenance practices. Earlier proposals for the water supplyof the above towns which had been prepared for DAB were extensively modifiedto incorporate the effects of now capital works installea, and revised waterconsumption and population projections.

8.3 A description of the technical proposals for water supply based onthe above reviews is given further below.

Detailed Design and Bidding Documents

8.4 These technical proposals would result in a first year program ofactions which includes in order of priority (i) carrying out leak detectionprograms in all cities except Palu and Palopo where these programs would nothave any economic benefits; (ii) rehabilitation of water treatment plant inManado; and (iii) implementation of some distribution extensions where waterdemand should be urgently met. On the basis of the above priorities, thefollowing documents would be prepared: (i) extended terms of referenceincluding draft contract and invitatiorn documents for unaccotunted for waterstudies; (ii) detailed design and bidding cocuments for treatment works; (iii)terms of reference for detailed design of project components; (iv) biddingdocuments for supply and installation of consumer ,,.ers, pipes andbulkmeters; and (v) transfer of background d3cuments.

Procurement

8.5 Land acquisition for all subprojects would not p'se any problems andwould take place before negotiations. Procurement of civil works and goodswould be carried out in accordance with World Bank Guidelines and GOIregulations. It is expected that all civil works would be awarded on thebasis of Local Competitive Bidding (LCB), materials and equipment contractswhich are generally less than $200,000 equivalent would be procured on thebasis of LCB. Only supply and installation of specific mechanical andelectrical equipment for treatment plants and pumping stations would beprocured under International Competitive Bidding (ICB). Materials andequipment of less than $50,000 equivalent would be procured on the basis ofprudent shorping. In line with presenit practice, it is expected to executepart of the house connections ar.i repairs under Force Account up to a total of$1,ooo, or v.

Project Implementation

8.6 Before project implenmentation special attention would be paid to anaggregate limited of $300,000 establish abstraction rights for the waterresources of Palopo and Watampone which are also ubed for irrigation purposes.lecause of the still unsatisfactory level of development of the waterenterprises, significant technical assistance is essential to achieveinstitutional strengthening and satisfactory project implementation. It istherefore, proposed to establish PMU's in each of the project provinces which

- 101 -

ANNEX 6Page 8 of 14

would be responsible for the above mentioned activities. As all waterenterprises in Sulawesi are expected to be transferred into PDAM's beforeproject implementation, it is proposed that each PDAM wil be responsible forits own procurement and project implementation.

Institutional Development

8.7 Except Manado and Palu which have a PDAM, the cities of Gorontalo,Palopo and Watampone are served by APAM's. The three BPAM's are expected tobe transferred into PDAM's ty April 1, 1991.

Project Beneficiaries

8.8 The proposed projects would extend incremental water supply to thefollowing population:

Incremental Population Served

Number of Population Number of PopulationHse. Connections (HC) with H.C. Standpipes (SP) with S.P.

Bitu:ig 2,231 13,286 43 3,870Watampone 1,556 9,553 9 8i0Palu 9,182 55,092 73 7,300Goprontalo 3,C91 22,100 263/a 13,150Palopo 3,674 20,243 25 6,925Manado 5,105 36,348 19 1,425

Total 24,839 156,722 432 33,840

/a Mix of group connections and public taps.

8.9 It is clear that in Sulawesi imprcved customer relations would benecessary to increase the number of house connections and public taps, and thedetrimental effect on potential customers of the present high connectioncharges should be mitigated through one or more of the following options:

(a) Charging only the actual margindl cost; (b) deferred payment ofconnection fees by installments over a period of five years; (c)building coanection cost into tariffs; (d) laying service mains toplot boundaries; (e) introduction of a by-law requiring connectionof properties within a certain distance of a distribution main, and(f) the promotion of the installation of group connections.

- 102 -

ANNEX 6Page 9 of 14

Proposed Water Supply facilities in Sulawesi

8.10 The works agreed with BPAM's and PDAM's would include:

Bitung: creation of distribution zoning, installation of pressurereducing valves and bulle flow meters, installation of chlorinationdosing equipment and soda ash dosing equipment at dahowudu for acapacity of 150 l/sec, construction of a 500 m3 capacity reservoir,layir.g of about 24 km of distribution pipes; construction of about2,400 service connections and 40 standpipes, and acquisition oflaboratory equipment and vehicles.

(Bone) Watampone, execution of an unaccounted for water reductionand repair program. Installation of chlorination facilities for acapacity of 100 1/sec at Walangi spring; installation of a pumpingstation at Walangi spring equipped with two pumps of each 60 1/sec;laying of about 35 km of distribution pipes; construction of about1,700 service connections and 10 standpipes; conscruction ofadditional stores and workshop, supply of maintenance equipment andvehicles.

(Donggala) Palu, execution of an unaccounted for water reduction andrepair program laying of about 114 km of distribution pipes;rehabilitation of civil and electro-mechanical works; replacement ofpum,)s, acquisition of laboratory equipment, construction of about7,000 .ervice connections and 65 standpipes.

Gorontalo, execution of an unaccounted for water reduction andrepair program; study and improvement of existing intake at Boneriver for a capacity of 200 1/sec; rehabilitation of bulk meters,laying of about 46 km of distribution pipes, construction of about4,000 service connections and about 280 group connections andstandpipes; construction of a 1,000 m3 capacity reservoir,construction of new 300 KVA PLN connection to PLN; construction ofoffice building, storage and workshop, and acquisition oflaboratory, maintenance equipment and vehicles.

(Luwu) Palopo, installation of new river intake for a capacity of154 1/sec; laying of a transmission pipe of 300 nmn diameter and 500m length extension of treatment plant for a total capacity of 1201/sec, construction of a 1,000 m3 capacity reservoir with a 250 mmdiameter and 1,205 m long transmission pipe; installation of twopumps of 16 1/sec 56 m head, laying of about 48,5 km of distributionpipe; construction of about 5,500 service connections and 25 publictaps.

Manado, execution of an unaccounted for water reduction and repairprogram, rehabilitation cf Paal Dua treatment plant for a capacityof 350 1/sec; installation of chlorination facilities at Malayangpumpstation 200 1/sec; Pantchuran 15 1/sec,. Teling borehole 201/sec, Airport borehole 20 1/sec, Kumahakar spring 130 1/sec,rehabilitation of Panairan treatment works, Teling borehole and

- 103 -

ANNEX 6Page 10 of 14

rehabilitation of Panairan treatment works, Teling borehole andAirport borehole; construction of a new 40 1/sec borehole atPineleng; rehabilitation of Bahandyang pump station, installation ofa 100 1/sec 60 m head pump with 80 1/sec and 50 l/sec standby pumps;Paniki borehole relocation for a capacity of 40 1/sec, constructionof a 500 ma capacity reservoir at BPT IV and a 2,000 ms capacityreservoir at Paal Dua; replacement of about 3,5 km of distributionpipes; laying of about 15 km transmission mains and of about 71 kmof distribution mains; installation of about 5,500 serviceconnections and 20 public taps; construction of offices andlaboratory; and acquisition of maintenance equipment and vehicles.

D. Technical Assessment of Water Supply Projects(Irian Jaya Component)

Review of Water Demand Projections

9.1 The original masterplans and designs prepared for water supply inIrian Jaya in 1985-1987 were reviewed and updated. The review was based on(i) physical changes of water supply systems which were recently implemented;(ii) additional surveys to assess water demand; and (iii) modified populationprojections taking into account the results of recently executed IUIDPstudies. In all towns considerable improvement of service levels throughrepairs, rehabilitation and metering had been executed by the management ofthe BPAM's. Based on sound design criteria and least cost approaches tosatisfy future water demand, the following amendments to the original designswere proposed:

(i) Jayapura, based on a new assessment of water demand, developingthe Kujabu river source in accordance with the existingdetailed design. This would provide adequate headwork capacitywhich would be adequate in the long-term. No other majorchanges are proposed.

(ii) Sorong, based on the results of water demand assessment reduceper capita demand from 150 l/c/d to 90 l/c/d and reduce thepercentage of water users supplied from public stendpipes from25 to 15 percent. As a result of the reduction in the demand,develop a staged construction of the earlier proposed treatmentplant (50 percent of the original capacity). The majority ofthe scheme elements remain essentially unchanged. However, theoperational complexity of the plump system may dictate the needfor additioral storage to increase service reliability.

(iii) Fak-Fak, no changes.

(iv) Nabire, no changes.

(v) Manokwari, there are no changes in per capita water demands.However, population projections are reduced from 73,000 in 1995to 43,000. Based on revised population projections demand has

- 104 -ANNEX 6Page l. of 14

proposed. In addition, less connections, distribution net workextensions and storage will be needed.

(vi) B.ak, no changes.

(vii) Serui, no changes.

(viii) Wamena, the existing Wamena water supply includes a treatmentplant which is poorly designed. 1PPSAB has proposed low costmodifications to existing filters to increase depth and fitback wash facilities. This work is understood to be part ofthe 1990/1991 works program and is not included in the project.However because of recent increases in population developmentof a new intake at Kali Walesi will be implemented under theproject.

Review of Technical Design

9.2 Although the overall recommendations are acceptable and offer anappropriate approach to development of improved service levels, the detailed

technical design prepared for the project towns would be reviewed and modifiedto guarantee the safety of operation of the proposed works. Moreover, theagreed modifications of the water supply schemes need additional detaileddesign of intakes, storage, distribution systems, pumping stations andchlorination facilities in several towns. It is estimated that review andmodification of available detailed design and preparation of additionaldetailed design would require the input of local and foreign consultants.

Review of Bidding Documents

9.3 All draft bidding documents pertaining to the original detaileddesign for civil works and related supplies were prepared by Consultants.However, these bioding documents need to be completed with bills ofquantities. It is expected that the inputs needed for (i) modifying thedetailed designs; (ii) preparation of additional detailed design and biddingdocuments; (iii) optimal packaging of works and supplies; and (iv) completionof the bills of quantities, will be provided by a team of local and foreign

consultants.

Procurement

9.4 Land acquisition for all projects would not pose any problems andwill take place before negotiations. It is expected that all civil works are

small and would be awarded to prequalified contractors under local competitivebidding (LCB). It is not expected that significant amounts of materials andequipment can be supplied from within Irian Jaya. The contracts for supply of

pipes, fittings, water meters and steel reservoirs which are in excess of$200,000 equivalent would therefore, be tendered under the internationalcompetitive bidding (ICB). It is proposed that mechanical equipment (pumps,motors, generators and chlorinators) which need maintenance services fromcompanies with established agents within Indonesia are procured on the basis

- 105 -

ANNEX 6Page 12 of 14

of local competitive bidding. These contracts for the equipment will be lessthan $200,000 equivalent. Miscellaneous goods costing less than $50,000equivalent up to an aggregate limit of $400,000 may be procured by prudentshopping. In line with present practice many house connections are carriedout by the BPAM's themselves. Therefore part of the house connections andrepairs would be carried out under Force Account.

9.5 The efficient implementation of the proposed water supply systems inIrian Jaya will pose a serious challenge, because of the lack of experiencedcontractors and the logistical difficulties created by the large distancesbetween relatively isolated water supply companies which require importantexternal support. Therefore, a project management unit which providestraining for the enterprise staff at all levels is proposed to be establishedin Jayapura. Although the BPAM Jayapura will soon be transferred to a PDAM,it is proposed that the PDAM would delegate all responsibility for managementof procurenment and project implementation to the above mentioned unit.

Institutional Development

9.6 The transfer of responsibilities from BPAM to PDAM will take placeby April 1991, but no information on the expected dates for the other BPAM'sis available.

Project Beneficiaries

9.7 The proposed projects would extend incremental water supply to thefollowing population:

Incremental Population Served

Number of Population Number of PopulationHse. Connections (HC) with H.C. Standpipes (SP) with S.P.

Jayapura 6,125 42,875 202 20,200Sorong 5,802 40,614 88 8,800Fak Fak 179 1,432 24 2,400Nabire 1,272 8,804 37 3,700Manokwari 2,350 16,450 80 8,000Biak 1,930 14,450 78 7,800Serui 667 5,336 43 4,300Wamena 400 2,800 11 1,100

Total 18,725 132,886 563 56,300

E. Detailed Description of Water Supply Facilities in Irian Ja

- 106 -ANNEX 6

Page 13 of 14

10.1 The project components which have been discussed and agreed withPPSAB/BPAM's would provide for the following facilities in addition tounaccounted for water reduction and repair programs:

Javapura: Development of a new intake at high level on Kali Kujabuwith a usable yield for 270 1/sec chlorination facilities with atotal capacity of about 300 1/sec, laying of a 500 mm diametertransmission main of about 25 km length of Kali Jujabu to Jayapuraand replacement of the minor transmission remains by mains of higherreplacement of other minor transmission maintains by mains of highercapacity, rehabilitatior/replacement of about 30 km of distributionmains and laying of about 38 km of new distribution mains,construction of storage reservoirs of approximately 6,000 m'capacity, rehabilitation of about 2,000 connections, installation ofabout 5,000 water meters in unmetered connections and constructionof about 6,000 new connections and 200 standpipes. Other facilitiesincluding workshops, pipe storage areas, offices maintenanceequipment etc.

Sorong: Development of a new intake weir and pumping station on theexisting Sungai Remu Source for a capacity of about 130 l/sec and apumping head of about 20 m, construction of a 60 1/sec capacity slowsand filter treatment plant with chlorination facilities at Remu,laying of about 9.5 km 150 to 300 mm diameter transmission mains;laying of about 39 km of distribution mains; construction of 2storage reservoirs of 500 and 750 ms capacity; rehabilitation of1,500 connections, including installation of about 500 meters inunmnetered connections, including installation of about 500 meters inunmetered connections and construction of about 5,000 newconnections and 80 standpipes.

Other facilities including workshops, pipe storage areas, officesmaintenance equipments etc.

Fak-Fak, rehabilitation of the existing treatment plant for acapacity of 20 1/sec, laying of about 4 km 80 to 150 mm diametertransmission mains rehabilitation of storage and construction of 2reservoirs of 100 ms capacity. laying of about 2.5 km ofdistribution mains, rehabilitation of 135 connections installationof meters in ... unmetered connections and installation of about 130new connections and 20 standpipes.

Other facilities including workshops, pipe storage areas, officesmaintenance equipment etc.

Nabire, development of a new groundwater source and chlorinationfacility for a capacity of 27 1/sec, construction of a pumpingstation with a capacity of 27 1/sec and a head of about 25 m, layingof about 1.5 km 150 to 200 mm diameter transmission main laying ofabout 1.5 km 150 to 200 mm diameter transmission main laying ofabout 32 km distribution mains, construction ox a 500 ms reservoir

- 107 -

ANNEX 6Page 14 of 14

about 1.5 km 150 to 200 mm diameter transmission main laying ofabout 32 km distribution mains, construction of a 500 ma reservoiron Bukit Meriam; construction of about 1,150 connections and 35standpipes.

Other facilities including workshops, pipe storage areas, officesmaintenance equipment etc.

Manokwari, development of a new intake at Kali Dingin with acapacity of 400 1/sec, construction of a pumping station withchlorination facilities with a capacity of 40 1/sec and a head of100 m, laying of 14 km 50 to 250 mm diameter transmission mains,laying of about 46 km new distribution mains, construction of 4reservoirs of 100 to 300 ma capacity; and construction of about2,300 connections and 80 standpipes. Other facilities includingworkshops, pipe storage areas, offices, maintenance equipment etc.

Biak, development of additional pump facilities at Snerbouw in acapacity of 50 1/sec and a head of 60 m and 13 1/sec and a head of90 m; chlorination facilities for a capacity of 60 1/sec; laying of45 km 200 to 350 mm diameter transmission mains; lay'ng of 49 km newdistribution mains, rehabilitation of 400 m8 storage facilities andconstruction of 2 reservoirs of 500 and 300 mJ capacity,rehabilitation of 1,600 connections, installation of meters in 800unmetered connections and construction of about 1,800 newconnections and 80 standpipes.

Other facilities including workshops, pipe storage areas officesmaintenance equipment etc.

Serui, incorporation of recently constructed intake of 20 1/seccapacity on tributary of Kali Matuembo, screening sedimentation fora capacity of 20 1/sec; chlorination facilities for a capacity of 201/sec, laying of about 30 km of distribution mains; construction ofa reservoir with a capacity of 500 m3; rehabilitation of 60connections; installation of 75 meters in unmetered connections andconstruction of about 700 service connections and 40 standpipes.

Wamena, development and construction of intakes at Kali Walesi andBlaget construction of clorination facilities, laying of about 10km, 200 mm diameter transmission pipe and construction of 500 ma ofstorage capacity improvement of treatment and construction ofchlorination facilities for a capacity of 12 1/sec laying of about 9km of distribution mains; construction of about 460 serviceconnections and 60 standpipes. Other facilities includingworkshops, pipe storage areas, offices, maintenance equipment etc.

- 108 - ATEX 7Page 1 of 4

INDONESIA

SULAWESI - IRIAN JAYA URBAN DEVELOPMENT PROJECT

ECONOMIC ANALYSIS

A. WATER SUPPLY

1. Net present value (NPV) and economic rate of return (ERR) wereestimated for each water supply subproject. In order to cope withthe large number of (relatively small) subprojects, Bank staffproposed the application of a simplified methodology.

2. Economic benefits of water supply projects are equal to theconsumers' willingness to pay for water plus external healthbenefits, i.e. prevention of infections caused to others (outsideof someone's own household). The external health benefits, sinceare intangible, formally don't enter the economic analysis. Inlarge cities with well functioning water supply systems there areusually enough information to obtain a reasonably good estimate ofthe consumers' demand function. The water demand function, in turn,can be used to estimate willingness to pay.

3. Lack of data and expertise and the proliferation of intermittentwater supply systems generally made the application of this"traditional" method impossible in Sulawesi and Irian Jaya. Theproposed simplified methodology divides piped water consumptioninto two parts: the first part replaces the previous source (e.g.wells, rivers, vendors) of water use, while the second part is anet increase in water consumption. Benefit of the first part isequal to the cost savings (actual payments plus own labor) ofconsumers who no more need to use other sources of water supply(this is the so-called alternative cost valuation method). Benefitof the second part, i.e., of incremental water use, is still hasto be estimated using the concept of willingness to pay and thatway depends on how accurately the demand function was estimated.However, the share of total benefits due to incremental water useis usually small and the information collected in order to estimatethe benefit of the first part can be used to estimate one point onthe demand curve. The full demand function is estimated byproviding the coordinates of a fictitious low price - high quantitypoint on the demand curve and assuming a linear relationshipbetween price and water demand (the method is not very sensitive tothe assumption regarding the shape of the water demand curve and tosmall perturbations in the coordinates of the low price - highquantity point).

4. Two simple, user friendly software programs were developed alongthese lines to assist the project preparation teams with economicanalysis. The programs compare subproject costs and benefits andcalculate NPV and ERR estimates (the pi7ograms use a discount rateof 10% for NPV calculations). The programs are also useful forsensitivity analysis. A more detailed desc,iption of the programs(one for small projects and one for larger ones) with the

- 109 - ANNEX 7Page 2of 4

mathematical formulas can be found in the project files.

5. Further simplification in the applied methodology was allowed bythe possibility of estimating a lower bound for the ERR. Themethod relies on the financial internal rate of return (FIRR)calculated with constant prices to obtain the lower bound estimate.When an expansion/rehabilitation of an already existing system isproposed and (a) there is no real water price increase projected;(b) changes in water consumption per connection are fully explainedby projected changes in the real income and composition ofcustomers, then the FIRR can be used as a proxy for the lower boundof ERR.

6. The estimated piped water consumption levels, which served asinput to both the economic and financial analysis programs, tookinto account both consumer wealth (income growth) effects and priceeffects. Demand analysis carried out in Jakarta, Bogor and Surabayafound a 0.6 elasticity of water demand with respect to income anda -0.1 to -0.5 elasticity with respect to price. For the purpose ofthis project, income elasticity of 0.6 and price elasticity of -0.2were used to estimate per connection consumption levels for allwater supply systems.

7. The main results from the economic analysis of water supplysubprojects are summarized below:

City (local gov.) NPV ERR AIC Present tariff(Rp. bill) (%) (RpTcum) (Rp/cum)

Watampone (Bone) 0.5 12.8 486 302Palopo (Luwu) 0.1 10.4 361 230Manado 4.4 14.0 333 357Gorontalo 0.0 9.7 456 330Donggala (Palu) 4.7 14.6 410 363Jayapura 12.5 16.8 677 370Biak 2.5 16.2 710 792Sorong 10.6 22.0 694 450Fak Fak 0.4 13.4 935 303Nabire 1.4 16.6 802 458Serui 0.0 10.0 1057 290Wamena 0.1 11.0 1004 290Manokwari 0.1 10.3 1132 261

B. DRAINAGE

7. The overwhelming major_.iy of drainage subprojects are verysmall, i.e. cost less than Rp 400 million (about US$ 0.2 million).Case by case economic analysis (i.e. calculation of ERR and NPV)was required only for the larger ones which typically cost Rp 600 -1500 million. The benefits of these drainage subprojects were

estimated either i) on the basis of avoided flood damages or ii)

ANNEX 7- 110 - Page 3 of 4

land value increases and road maintenance cost reductions. Sinceestimation of the cost of flood damages requires very detailedsurveys and the analysis of several type of costs, preparationpreferred the second, less time consuming approach. The advantageof this approach is obvious: land value increase, if land marketsfunction properly, is an indicator which can reflect the presentvalue of the future benefit stream accruing to the owners of theland in the project area. The projected increases in land valueswere based on comparison of land values in the project area to landvalues in similar, but less frequently flooded neighborhoods.Information on land values were collected during interviews withkelurahan (sub-district) staff handling land transactions and withinformal real estate brokers. Reductions in road maintenance costswere estimated on the basis of local experience. Only thosedrainage projects are included in the proposed project which havea positive NPV.

C. URBAN ROADS

8. The Urban Road Directorate of the Ministry of Public Worksissued an "Urban Road Planning and Programming Manual" to guide thepreparation of all IUIDP projects. Preparation of the manual waspartly financed from the technical assistance components of theRegional Cities Urban Transport Project (Loan no. 2817-IND) and theUrban Sector Loan (Loan no. 2816-IND). Economic analysis of allroad subprojects were based on the application of this manual.Using information obtained from site specific traffic and roadcondition surveys, the manual is an easy to use tool to estimatethe benefits of urban road rehabilitation, betterment, widening andnew urban road projects. Two kinds of benefits were estimated:vehicle operation cost savings and time benefits, which, ifcompared to the costs, made it possible to calculate ERR or NPV ofthe subprojects. Further simplification was allowed for subprojectswith a cost below Rp 2 billion (about US$ 1.1 million). For eachclass of road and type of road improvement, the manual alsocalculates the minimum traffic level which makes the improvementeconomically viable (detailed description of the methodology andassumptions used in the manual is available in the project files).A proposed road improvement was considered acceptable if theaverage daily traffic on the road was higher than the cut-off leveldetermined that way.

D. OTHER SUBSECTORS

9. A high portion of the benefits of human and solid wastemanagement and market infrastructure improvement subprojects areintangible and accrue to the local community as a whole and notonly to the direct recipients of these services. Therefore, therewas no requirement to carry out a formal comparison of costs andbenefits, however, for subprojects with a cost of more than Rp 400million, it had to be demonstrated that the proposal was the leastcost solution which achieves the desired environmental impact.

-1ill1- ANNEX 7Page 4 of4

Kampung improvement subprojects deliver a standard package ofinfrastructure services which was proven to be economically viablein several Bank financed projects before. Since the economicanalysis of that kind of investments is very costly and theconcentration of expenditures is low, the economic viability ofproposed kampung improvements, as long as those are following theagreed standards, was presumed.

INDONESIA ANNEX 8

SULAWESI-IRIAN JAYA URBAN DEVELOPMENT PROJECT Page 1 of 15

BPAM Sorong231 111 C.1

2" IKH SAlTOE2" 111U1" wits

2W --- --- --- --- ------------------------- __------ -- ___ __* -29 of"9191 "I191 91192 92113 13114 14195 1519 9im 91I" 9319 "IN6 Islet

294 Sevic. am hpu atim 14,1136 77,60 3,470 03,960 01,600 91,39 95,30 n ,410 103,0 34023 112,16 117,30 122,96

29 fpl.ti So Ned 35? 371 sit 40! 421 52? 2I 69? 76 77? 2W m n2921 Dete Cuuucuu I 360) 2.267 L.22 4.223 4.720 5.223 6.532 7.4 9.346 10.463 11.110 1M.76 12.412 13.4

23 CMe tim 13UMulhlO tiu.2 29.934 30.177 22.16, 22.353 22.358 2.5s0 22.7 e 22.C2 22.6 23.310 23.n3 24.377 24.60229 %s1.. s1od ilillim i3) 0.313 1.216 3.123 1.266 1.401 1.176 2.136 2.039 2.073 3.315 3.314 L.654 3.95in301 I MOKcE tt*Ifr later 1 22? 40? 3 33? 2? 23? 20 20 20t 1 20 20?

32 lter PreKt. gilla 11 . 1.S55 1.372 2.042 2.092 2.493 2.J74 3.129 3.m L.9 4.21 ;.Sj 4.94S

303 rsp lrtwif (4M1 311 421 449 416 505 535 5617 60 3 353 am 919 90

304M0 Vurf ldao M (lillim Ipi 25Y.21 511.57 504.46 602.67 707.09 14.71 1,210.79 1,104.3 2,31.52 2,6.06 2,. 3,35317.13 3,63.3

I C_etinm li. 33.01 I0.9 172.99 223.02 21?.ff 17m.f5 1ot.6 37.06

307 Less Allsmut. mw ld bbts 97.00 87.07 01.74 91.56 117.56 146.3 231.73 250.6 290.0 32.16 353.063__ - - -- -- ----- - - --- --- - ----- - --------- - ---- _- - ----- - ---- - - ------------- --

30 TMAL 1 TIS KhEIS 25.21 511.57 407.37 5152. 625.35 617.24 1,194.20 2,530.96 2351.04 2,606.45 2,317.79 3,40.23 3,323.0132032l Prmml n9.s6 303.24 90.29 201.96 174.49 247.51 323.64 433.62 507.70 567.33 42.32 733.9 302.7n322 Pow 45.14 n1.31 165.71 131.64 200.6U 260.2 39.33 370.24 453.3' 517.62 594.24 612.20 773.49

313 Cseacal, 9.22 23.96 29.9 23.71 29.03 35.21 42.03 52.2t 36.03 67.53 71.52 11.93314 lAIGtI.We N1tetialS 47.29 49.3s 44.56 47.25 6.34 33.14 93.53 103.72 114.20 122.; 129.06 137.65 145.913135 ramn4srtts 33.44 23.22 14.45 15.32 16.24 37.21 1.25 29.34 20.30 23.73 23.04 24.42 25.73

316 Adesstratiml6ugral 49.02 72.25 19.31 22.10 25.15 23.41 32.14 56.16 42.41 46.16 52.1 31.44 63.1

Il il 9.U3 10.84 13.63 16.41 I3." 21.06 23.59 ;:.Is 23.24 35.14 23.41

su1310

J3 Nl.I IPf3016 EIMSES 259.29 315.32 U4.13 417.11 533.12 613.54 343.07 102.51 1217.61 139.03 U47.24 170.44 1339.24

322 2K EFO KPECITIU 40.07) 126.25 43.24 97.71 92.23 213.70 351.24 520.45 1,2".23 1,23.62 1 323.55 1,399.78 I,413.nM W.Ut SS 394.13 41.62 451.25 430.51 369.36 776.95 924.45 1,032.06 1,140.23 1,230.62 1323.35 1,39.71 1,4U3.77

32 In-ca EmpraUt rnIn I 12U IK 1394.11 32901.373 I40.012 3332.72) 3496.13) 3573.25) 1573.31) 4322.611 0.36 0.40 0.00 0.40326321 brti.ll btrnt33 Other aWo Jot) 3.34 10.33 12.31 33.51 14.39 15.26 16.17 17.14 13.1i 19.26 20.42 21.64 22.61329 i1 INm ibl.wt tIax) 235.842 (27t.541 (395.202 (36.If) 3482.541 (562.9) (557.141 (304.41) 13.17 39.26 20.42 21.64 22.31

33 Ig u TM 3.54 3.32 4.10 4.41 4.7033 I IElT (alter tag) 1305.041 (279.541 1395.201 (S69.141 0482.541 1562.993 1557.141 3304.462 146 15.45 16.33 17.23 13.10332

334 _-

A-E w per IO Sold IRNO 311 317 324 330 3e 31' 395 4U 424 440 459 476 465336 ratia Relio 100.0? 7S.3? 19.4? 31.01 35.31 71.6? 10.6? 66.7? 51.6 52.? 54.n1 55.41 55.31

31 t atuq ltia 252.11 156.3? 200.2n 174.21 179.51 165.2! 141.41 114.12 I.0! 10e.01 300.02 100.01 13.0

8 act wm - kumus a -54.6? -97.0? -71.6U -77.21 -63.5? -46.7? -33.0 0.n1 0.n 1e.11 0.11 0.71339 3l [mer""e s T ariffs 22.01S" lKr is tinwatr 97.4? -20.4? 26.6! 21.3? 41.91 34.6? 2e.f .4.0? 10.6? 9.? .5 s5 s.

341 Inrtu ia letr SIll 49.21 -7.61 12.7: 10.71 26.21 20.!t 17.21 34.3? *.4? 3.32 3.7? 31.3342 erwap lAwIs late km 6,010.97 6,316.40 6,311.85 6,256.27 7,870.56 11,047.41 13,101.36 14,067.1 14,353.62 15,221.51 15,024.44 14,565.74 13,97."134S lt, at It.rm - k,aI,d k4wts -6.5! -4.61 -6.51 -6.12 -6.3? -5.21 -4.41 -3.7! 0.0? 6.3 0.0? 0.6?344345 UIE: o to r_ dim, tOs last diavt at the totals say be liltiruit from the sol of the col..f.34 16-kt-9

5U1WAI00 616 00M WOW 54 04 1951.1W sq A041 WW 60 eq 4Iq 1996t *99554 am

609 60- 603 601 601 6009 6006 606 1 60P0 6001- 60£65 in9v6'ZsUt "_p_0f-6606 s9316'3e a Ogg9 o d,09 Ls 616,U- to 01 69olz low9-St or O e1 tCOt it 303 901U-O9 99K03 zip OS6W V6 _ _1190 H2E %0a %660 sh Ft 6C as 364 %va %a #_ W pi %09 60e%1 %3Em mm01 Wte m_ _tt 9 t & VA aOtZi LI %t oC ^w0 090 %S *s00 *9 09 %I- %9C ct- -̂ _ado4a"60I- %09 %v &- %g3- SS5 60`0- %Oet 600- ao01 %,o- 6090- t 0001 ""I99jeoo-_ _4 P9

%a A W 9 %to %1, se ftc zi %SC %Z el %$'V- , ,, %r at %I 9 %0 bes % t - aMO N%V-U 6 pi %6 %f6 603 606£ %6 co %6 to %6011 4bis1 %S W0 %i 093 690 5 am a lo%W n 6091o 61b00 603t % 609 %0`69 %16St %009 % I6t 0111 093 Si619t 6010o _ _qq"

a t C ec e V s w N l l oot) C0,0 UAk m ot'W t ot ___1P _9m A

nntp1

eect 9 Ice ee t 16s *9 00U U 000Z) Gtod Ce ( ) 00o0I 60 060 Om-A

90et e Is. etz -e a Kt isCs O ezi e0tl oCIIt iue Die w Osl as_ _'tbo V "as el" 03 no 99-19 d 99 10 61 VW' a 6 ( st ll Ui e93 (33 tOil CA.e a a So goi ee eseem e eee _ a_

9151 191Z5t1 35 16A v9mug to 9*1 U5 69 1t 90106c1 boo 9C CZ EM i) 30 99-0406 3fo *o M1964e00 0 00 0 00 0 00 0 000a 00 0 00 0 00 0 000 00 0 00 0 00 0 000 sea.sis*3 V699oo o eK h or eec I IS Lao oCC' Ivs, KOM G o o e otlw I eo Ko is ooz l o au ee Duopoa t5t s as 6e3 gicLl 30.t c o _ 5 IN c 19 119 VD i so6t 6 we' 1 It 1*L 19 c0 lo0t to 0w l06WV NwouVK) 310AU0S

1 0, VICE 99 gmsi (L 5193 Ii coOS UUI Is£3 AM6 zts 919u ea1on Os 999 et'KC Ct1 3113 db6A OWW1L

0699 £o Z 6e eu1 ee9 166n £30 ne9 60£ 066 oe9 eee 0 00 *4 6990 to1 613 669n ei WZls 6f99i 1s9e 13 6099e 9,1 9993 9 _9

it V so0 o LI losew 9 to6et 113 is IC Ise o991 Ctl s993 16e3 _ -sSoPI e Leo JUI ew ns *w hetl &e e -oc seteo toC eee eeoZ Ic eeer _V a4PM WB000 000a isW so91 Mt9 990 & PI at1 9901 9900c 00 0 606o 00 so's 900 opb000 000 00 0 00 0 00 a600 0 00 a000 000 6s 00 000 WV06 a066 smco PM K 06013 MOM&6 a MA$ 001Mt1 e630061 CO CIOL o se696t* eV9 9gm Govo K PMl 61161t OI60U

St lo 3065 al-si c i S It OK goOtt 0133l C33.1 000 000 se-ued Go a _ u9s at s _631001e 9009 a" 1939 9i131, 31A 161 9 10061t 191993 M's9as set 9s3 tottwl 039as 0606 ez tteus oemsm owl

66£ OIl 9. 916 996 099 CII 13£ 931 693 1_.3_69 ____Gic-0 o- "to anc_ uoo c Aeu *veo et"9 uz sell t*t Ot 9 O- ee ee Wo "SO w-ow*w A

0910 001 91110 69 £106 %01 £91 199 £O 96 9963 %al9 %S3 %9CC 963 l U990i0 1 jA %

3036 0s061 out 6160 6999 1gs9 a1-9 6esc 0z 1 9L93c 6103 £6113 L9 kW eee eee eee91913 69K06 op190 910u0 ue69 en 06 £36 S ut0 903 cm39e 39t31 0t3 131 Cf sain61s us6 61so 003 1 016s 633It 31161 9009St on3et 3u it 0wl& 01911 13311 9116 (0601559955UI&

t4t. Cams W usiaz etarn 6*9 919 e tiatus als iwag gin mOc t'" ct'a net-u Mwet ez104 selet Oteec ew 9etst eWK Gt,9e6 ut'C ulerI uegt ( _ - _ - oSWIAl

ta oou WM svs am e sm NM ( MM tmal o

1M£1~~~~~~ N1NThNVLSNOwee e w& us s ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~tjn ,v wal t' 3e_vlN3Wl31VlS 3fl'2NI

vundrAYr I4dS l3 ~1Vi

* 3Vy Iq iLaroda £43WdOUaAW Nvufn vAvr NVaII-ISaHmV'S

SI Jo Z .aSd VISNOUNI8 XMNM

INDONES IA ANNEX 8

SUILAWESI-IRIAN JAYA URBAN DEVELOPMENT PROJECT Page 3 of 15

31 33IE cl BPAM Biak33

. I l 5t&11l162nm InLIn W33m3

m O;2sem "no %M e|"1 42 4"M "I" "I* ts ", N m s171 Om "M W

m - ------------------------.-- -- -.- ------------------- ---- - --------

6.11W .Itad 3,0 39,M 4,640 42'W" 44,23 41,30 41. 9 n 100 i2,3" 14,1 3,33 16,100m n3b_wk see lU in 193 ml 3s2 413 in3 113 l m U 191 Inar %W * um i m1.l 1.9 1.3 1.1 3.I31 3.60 2.11 2.012 3.30 JL GUI .3 4.1 0.936pj mmif 0 uwm.ba.1..g1., a. n. sim.0 21.6111 21.123 21.114 21.1191 21.3 21.mn 5.1111 VL21 211 am3" Ikow 1 i _ lu U) 6.ml 0 .30 0.41 c122 0.114 0.123 0.613 1.019 3.191 n.711 1.412 3.13 l3.

t_ o . .. wb ., 23 | 9l 1L . 193 a. b aXI bw pohi. 16111. El L. L0.n 13 .11) 0.32 0.611 1.030 8.133 L2e 3.4 3.021 1..10

Sjt~~1 14 192 n 640 US 13 363 3000t }13 13* n160

Jo * Orin d 1I t Z SuI nw n uin sw3m 61... 0ii3e apt 3101. M5." u1."5 430.10 313.96 *101.30 PLO ^3,63 611.117 914.41 8,303061,1314 1,1111131.3139 ~11 Iu FM LO0 0.00 0.00 0.00 0.00 31.11 6.11 131.19 301.02 31.0: S1." 3.41ItgUN lkm o he 0131m$ 0.00 0.0 3."4 181.13 111 v." U I 312W4 101.56 1.30 93.331 361.4 131.14 'UL:34

--- - ----- --JWo UIF[11 5 111135.6119M1" M1.22 413.31 3. U6.09 3,0*.4 1111.31 mie I'M.n" 3,9u 1JUL913.x _ Um I ILD 2."1 4l.3 1. 91.691 834.111 3 311.11 217.3 219.331 331.01 3.1 0.i 9.nHil2 f., 91.33 3.09 31.00 11.31 34.31 4.6 W1."0 13.96 92.31 In.1 2."4 342.1 111331 Caks .0 0.00 0.09 9." 8." 1.33 19.5 4. 311.13 v." V." 43.61 6.3306 14imi b anlc .14 0.34 9.1 110.21 1.90 n.34 3..11 3." G.f 41.3 6.1 1.04 1n.3mbuilaIin L9 4.00 310.31 31.14 501.31 9 201 .1 21 . 2 n n31 2 n. 4." A". I1." 19.11316 stimAkwal 11~~.21 11.00 H.91 33.1? 11.1$ 81.93 20.3 22.4* 261.30 19.00 32.34 11.31 i9.5D1 M 0.0 0.0 4.00 1.0 1.28 1.63 9.2 30.0 32.96 1 12 34.41 31.01 O.330 0.0 0.00 0.00 0.00 0.00 L.O 0.00 0.09 0.00 0.00 0.00 0.09 0.00349

------------------------ -----.----------.---- -------.----------.------ -------- .---------39 U 1111.11P111311 11tY IL"2 W0.4" MA.1 316.44 91.31 MAI. 331.33 436.09 31.38 11.13 ,142.301 MA.1 30.12311 11111[ EiUi3*3 132.31 M0.11 33.L2 22.31 21.9 311.30 190.19 042.013 319.01 433.11 431.131 4.913 49A.3M hpuia.m 21.0 as.6 K1." 92.3 M2.6 811.201 211.22 331.12 MM.6 413.03 43.08 4*4.13 mm2.34 Se-ia I .twm. 0.00 0.0 0.00 0.00 0.00 .00 0.00 0.00 0.0 0.00 0.00 0.00 0.00336M OW kmI hOaMt LO 0.00 0.00 6.0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 V.11in mw u aInl) 3.81 3.00 .3.0 3.11 4.31 L1.1 1.41 80.14 80.38 2.6 04.00 19.35 33.A39 m3 OM 4w lo e tl 00.1 3111.13 111.14 343.30 331.44 363.06 23.0 m.s 81.31 21.61 04.00 1.33 133.1113 to 9.111 3u.31 24.31 43.20 42.41 n1. U11 1.11 30.:1 3.03 1.41l 4." . 3 a33 Km11 3.41W Llas 14." 11 .31 12. 1.12 91.99 821.11 16.3 118. 31.2 83.00 6.00 34.001 11.3 3INA313

313 mum soi39

u lops M Vs M 344 3a11 3W 480 , , ,,,;,,3111 64 0.33 3.31 42.11 is." 43.111 48.9 w0 0 9. 1.121 3.I 39.43 01.6M B~~~~~~2.11 11 n2.21 31.11 31.3, 3.13 2.12-6 30.413.1 a41 nUM31. htone. is lalik La1 00 0.-2 0.01 0.0 1.101 0.1 10.401 10.01 0.01 L.KM hEmm is lowatlMob13.03 4.A 5.n 10.12 001 3.2.8 211.11 -31.3 18.011 301.01 I0.33M hoes. is 24.1 20.1 32.41 80.0" 21.0 20.11 31.31 31.9 11.111 I.E 01.93 1M4 Ows hod's. hI. 6.3,13.4 1,30 193.43 5,301.03 2,31.69 1,141.41 1,319. 6o,1324 1,311.31 111.3.1 1,0. 1 ,000.42"L ?,14A1M4361at mo 1' a hwoai.i ou 2.1. 1.11 1.2 .1 .1.1 E.1 4.33 .0.9 10.01 0LK 0.1 0.01 0.011M Ml ho I. raw"s, 3613tat1digit I totwig my6 OUtlefft fro. them u8o thu ntim..14 *40-11

ANNEX RINDONESIA Page 4 of 15

SULAWF.SI-IRIAN JAYA l'RBAN DFVEIOPMFNT PROJECT

2"1E t.l UBPAM Fak Fak2" IEO sIArs>"T

m ~~~~~~~~~~~~~~~~ICIESIEEINILLIBN IN31290 -- _-

m NM off" III1 1111 12113 13114 94115 913/1 -11917 17/93 "i" "If Niel213 ------- --- - -_--- -- - - -…------ - ------ - -294 lvice Area PpIdati 346 14,0 15,130 15 31,250 1U,150 17,4I1 1 39 71 N,1 21520 22,470m hps1ati lined 11 in1 t i4n 17t4 11 13 on 2 U1 I31 1i

291 l4ter f6mertuu, I Ml 3.12I 1.310 1.241 1.25 1.272 1.314 1.31 1.402 1.445 .41 1.40u 1.49 3. 429 Cim.tlm iuii i nc.ti.i 22.930 21.291 25.2U 25.20 25.326 25.1.0 25.9m1 21.420 U.350 21.350 21.350 21.35 21.35021 %m bu. (will" B 0.310 LU 0.311 0.312 L.U 6.465 * .425 U .444 0.445 u .445 * .445 6.4U 0.44533303 1 acm tu|iv-lw Uate 13 13 50t 4tm2 3t m 23 l 21 26t 20 20 t1302 Eat. fvsbKU t I3II3 U: 1.60 L.6 1.754 0.141 0.5717 0.510 .541 L.5S L.54 0.55* 0.554 LS .'55303 liway 11f ("I 21 2m4 in 321 341 341 440 447 M 102 749 1 621304in ariffi _mumn llli Epi 3.41 15.05 314. 122.14 13.45 1411. I2S4.2 201.31 29.3 312.24 332.13 355.21 35.6136 Ct_ cti Fm 6.L5 1.44 11.77 4.37 0.2t 1.51 3.43 5.52 1.11 1.33 5. I 3.16 3.I0301 La Ul_ nce r 2w ii ts 17.03 n1.31 22.3S 24.53 21.33 21.22 27.12 20.74 21.37 31.23 33.26 35.52 34.50306 I __- -- __-_ -- _________-____-____- - -_ -- _ ------ ---- _ - -- ___--_-__-. -

30 mm WIUm won 75.12 33.10 103.1U 162.41 365.41 1111.S. 11.U 5 212.17 270.12 2S7.7 304.U1 372.11 321.U1INI I htrumel 42.14 54.0 57.7n 70.94 33.31 14.12 321.35 122.23 135.12 144.00 152.72 1U1.U 110.5

H Cokals 3.11 3.30 I." 7.34 4.94 7.21 7.41 7.94 3.42 3.12 9.46 10.63 30.5134 *aiatnmu Eatnial3 31.3L 1.11 2.81 2.16 1.11 1.52 13.97 11.40 12.44 13.11 13.91 14.81 15.70335 l dsptatin 37 4.34 4.01 4.25 4.53 4.73 5.07 5.31 5.1 U.04 1.40 A i.s 1.15 S1U Uialst,atiUmluaual I3." 13.13 3.74 5.71 12.11 14.65 15.54 24.47 11.41 36.53 19.12 20.1 13.57 II1l -_ 1.16 2.03 3.63 ;.S 3.10 4.15 4.40 4.11 4.14 5.24 4.5 U

3 A N6 MTI 3111 72.22 90n.23 7n.29 93.2 IU.5 131.63 154.73 173.34 234.33 195.39 207.32 219.54 22.0.7

3m2 I1 I .vmtam .9, 17.U31 24.6 9.23 0. 117.U4) 41 16.2 lb." 91.17 97.41 303.34 19.SX32 orin tim 22.11 23.91 24.71 21.39 33." 44 437.3.53 33.32 U.59 93.91 97.49 103.34 239. 5432 on-cub Cm3wm4wsU 113.211 130.313 0." 117.171 (49.443 (78.73) 1".611 13.03 6.00 0.00 -.3363D tr_aU_ bakrl311 saw um 1111111

5 mm 44w. jai (3p.27 439.139 0.00 (17.171 (41.441 (731 33 46.611 (63.00 0.00 0.00 3.011011000 TM 1~~~~~~.02 0.00 0.00 0L"

U 1 lattIE in) 119.21) 130.191 0.07 117.171 149.441 373.731 244.43 (113.003 6.00 0.00 0.00

bu Not m22 27 UW 244 302 33I 3S6 391 U41 4u 466 04ILI3 30.4 5.9 M. 126.4! 234.91 95.712 16.52 16.0 00.02 03.02 40.31 ' .u

barn' ' -34.3 0.11 -16.61 -44.3 -4.5 -12 -32.12 1.L 0S." 0.41

3 b bd u is 20.1 2.10U 17 . 5.2 33.62 0.32 .5 6.73so1 4wlm 34 = m~Ia 41 L 31 2 34.52 113.91 42.02 4.11 LK0 4.LaLla WOOD b $bb .U1 12.1 1.32 L.3 4.72 4.52 5.11 0.2

26kb at Eat.. ~~~~~ -36.32% 573.00 59.00 M4.3 131.0 1,742.12 2,304.47 2,464.2 2,515.30 2, -34.2 2,9.3 2710 . W'I -533 0.K -2.611 -1.62 -4.52 -2.9! -2.52 6.IA0200

Is NM i FU 9 US to i he 01 34t to3 totals say he of l...t fro 134 m l of11.oves

I ~ ANNEX 8

INDONESIA Page 5 of 15

SUWIIFSI-IRIAN JAYA URBAN DEVELOPHENT PROJECT

21 lIK C.t BPAM Nsbiren IKE StitIINENI

29 IIIILII 111

29 11/8 pi" "013 1197 97193 93/94 94/95 95/96 itiII I91 "I"n 99 99/010 00M

294 sk iue Area PI1atim 11,32 1,300 20,7W 2e,91 21,k 22,460 23,210 24,34 7," 2le0 25410 21,7517 30, s m2 f Iatim s m 2nd .n tn 3511 ? ' 751 ' iU IIIn iet III '07294291 *er Cn t t i Im l 9.Pi 40.3 1.611 3.947 3.427 1.790 7.155 7.217 1.446 2.l2 2 2.10 31.130296 Cmg.p _u 43IU _C tti.i 19.330 1VAN 1I1.? 19.90 2e2.01 21.560 22.400 27.940 2.360 23.150 274.139 14.40 24.6192" 9m6 bid 431i4 all 6.191 0.213 0.22 6.*242 0.571 0.39 6.431 6.5.93 0.340 6.91 6.1 39 0.325 0.697

51 I bMuCitud-3 later 442 441 402 3t 33? 291 23? 20? l1o 262 19 2 lt 203W6 latw hsgimg (illism 01 6.345 0.331 0.30 6.391 0.364 0.5n 6.475 0.74? 0.640 e0.71 0.949 1.032 1.1713i b 8ap lunif lMM) 344 135 456 45 "U7 431 U III wUe 90 934 9*2154301 luAif f_r n 4illi3 fiI 41.9 19.U52 100.40 !,.t 154.011 2735.e0 325.25 425.06 533.14 411.91 490.02 1i2.20 325.151 Lamti. FM 2.34 14.20 31.14 50.33 44.21 76.3. 13.04 4.74 is. 1251 It ONmr iOW SW htS 10.1111 1 .4 13.3. 23.55 MU. 42.31 U.31 61.69 9. 71.2 5.3.59

in MAL pMIai. ~W IE& 1.49 19.3? n I 3 9952." 13. H 3 22.33 324.41 432.90 571.i.3 421.41 492.94 742.22 6.40

311 f inml 23.46 27.73 43.93 53.24 11.43 9..3 373.10 13.0.3 l4.9 e0.49t 220.I0 252.35 290.94Si2 Prr 4.4 3.14 10.31 21.43 30.42 39.62 49.63 54.59 44.12 74.49 U6.03 91.43333 teiga3s 2.95 2.41 3."4 4.31 4.20 7.94 10. 11.43 13.19 35.23 1I.51 20.72334 lamlsue ,btneqals 4.71 3.33 6.3. 9.67 33." 19.3 74.51 21.91 30.10 31.931 33.87 31. 35 3.00333 lrtm,.atgw 4.31 4.21 2. 4.25 9.02 9.54 130.33 10.74 11.9 12.01 12.79 I3.-' 14.79310 WidustralmotiveraI 4.67 5.91 3.73 3.16 12.67 14.25 15.15 11.34 19.40 21.33 :3.10 J 5 " 1. 4031 I 2.4 4.19 5.14 4.64 .40 1.431 3.03 b 71 9.56 30

n ---------------------------- -- - --- --- -- ---- -- -- ---- -- --- -- --- --- -- --- --- --- -- --- --- -- - -- --- -- - -- -- - --- - -- -- --- --- -- - - . - - -. -- . . -- --- --no a1 w h1 131S1 49.32 5.4.61 12.3. 19.;I WM 3.1 221.13 274.4? 305.41 164.03 44 443 56 443 .33nm i KM FECiO 3.36 2.4S H3.07 1.47 P !167 91.32 153.21 2335.5 733.31 30.3oo 33 33 337.11m ihwagata 7.1.4 6l.9 11.03 9 - 205.11 244.00 21 6.30 3.42 303.13 324.01 343..51

3In Wl111111111 1 U 1 456.11 143.53' *-4i 1410_31 413.441 3101.601 183.13) -4.54 -4.37 -5.10 -5.4 -5.0

hratiml teeulEki kIv a t I 3.66 3.60 3.19 3.39 3.40 3.32 4.04 4.29 4.534 4.3 5.10 5.41 5.10

329 tl it w 2.t ) t33 i 55..7/ 14 7 .11 07.931 4102.711 (13.4731 (103.713 163..1 6.06 6.4 6. of9.00 146.401In haw. Tom 0.40 0.40 0.40 0.4031 NE T m lafter tell 455.11 441.3.3 U42.600 13S.191 4302.713 1107.2) 463.1175.2 411.51 6.40 6.e0 *.°0 0.ee 4.40

m mum r n:m

"S . f id lop) 2050 253 3l3 321 540 494 412 443 411 493 3.3. 536 52_tiig 3116 n72.91 61.01 34l 79.32 I".0? e0.n1 70.n? 63.41 53.51 n4.3Z n.? 5.621 5e.1337 Spratieg latie 331.32 1354.12 I79.62 141.41 113.51 349.3? 133.21 119.2 3o.1 1408.31 1034.11 300.11 3.n

321 *NI him - Sinw11s11 -56.91 -75.21 -5.0 -3 -41.61 -32.01 -12.31 0.01 0.01 0.01 0.01 0.01339 hal hirsees ha twills 0.22 15.62 31.0?S6 Imreo la lMW ting fi . 31.52 5.62 It.71 39.21 47.US 43.51 33.41 33.9? 9.n9 10.31 10.11 5.n?361 mrm ie n i. l a id0 3.S2 4.9t 4.31 4.2? 43.4? 3.3?1 23.31 .91 6.9? 6.9? 3.11 3.2M4 6up kwt's lte 1,w1. 3,33.34 ,4' 1,310.34 1,345.33 2,10.29 3,393.43 4,3..24 4,370.5.4 4,936.39 4,935.3. 4,936.13 4,311.95

3atest 1 d tue h bhalu keets -5.61? -3.n -4.n .5 -5.3? -3.91 -2.62 -1.9? -0.11 -4.3? 0.13 -it 4.1?

344 b3i1t

INDONESIAANE

SULAWESI-IFIAN' JAYA URBAN DEFW.LOPMET.PROJECT Page 6 of 1Sjvf rmfC BPAM Se-r-ui

M ~~~~~~~~~~~~~~~~~~~~~IllC8NE SlUEIAENIN

n1 brtfcirr a re plallz IS,Z II,&5 13,150 14.04 l,no0 14,4 o1 14,7U l4,vn 15,10 15,1 ne ISUM plat 40s.,ryn 2 SI 2sn 24 21 581 75 51 III m is, MI 'e

M ltezlr omrt lemIs I M) O.U7 0.411 O.IS1 O.us 0.101 1.12S l.lS7 1.2f 1.75 1.319 I.J5Sn C It[" (IOMmiulbCm tial} 21.7* 23.1101 23. IN 25.210 2S.2*0 21.190 24.50 26.01 21.120 71.1S1 71.2M blur sold OUIIIz 1lSI 0.17 0.12s 0.137 0.207 0.7sl 0.357 O.3S .m e.n11 *.434 1.46

31 1 811r_C Id1-fOr later ml 3tl 17- m 211 2s Nl m m "1 XM llttr frdiiz lNilliN la1 1.2911 0.203 e.171 0.2nl *.35 1.44 1.451 1.43 0.514 0.542 1.57136 fivrat larlft I apl) 441 21 55 58n I&Is s 7U9 as n2 *l

M lTwill Ilmo 11111H11p1 1I.N 38.71 MA.* 107.72 15.1.U 2 7.31 2?7.17 2§.H9 3".1 15 .U 1 .n30 Commotio Fmn 0.S! .41 11.41 n9.s 35.416 51.11 29.1 11.05 6.167S tms Itrmoc for Md kbUs 11.62 16.16 71.44 0.9l 31I.U }3.14 7'tJI lJ.Or J5.7 n1.u

Mt "tI tAtW TIII a*IIUS it." 27.11 It.02 27.25 111.55 7lS.1S M.11 10].47 m1.1u - 31.74 lU1.17III Fw r l I4.u 21.73 31.U 57.52 n1.52 lOl.13 Ill." In.19 u^4.n 141.U Mn.

3IJ UEkoicls 3.67 4.11 6.n7 6.n" LS 0.n5 1.11 11.0Slt Ouirlom llurirals IJ3 1.1 t.05 S. it 1.4.1 1S.0? 17.11 H.lt 19.11 tO.41 21.70MI frasprtatl 4.25 -°0S 9.56 10.11 16.4 11.1t 12. 7 12.1 MS& 5 14. lS n ilnsratl"/h"era LS. su4 I2.le 15.24 14.25 ISMS Ut.49 11.1 11.01 l.I 11.40$1? "N 1.16 2.32 3.22 3.11 4.83 5.t0 LS 5.91 5.48 5.3

M1I1 ------ - ---- ---------- -- ------------ ----- ------ -- -- ---- -- - ---- ------ - -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -,.no TEAL PENTl flKmsE 11.4 14.52 64.14 12.15 in.23 15s.9 IH.12 104.71 MC.7 ?1 01 11 771.7?

In IK M IIE Kf I ATI^Ii IS.0 (7.40) IIS.!II 10.701 11.1? 51.25 Ill-.0 111.14 17 A. tl MAY 111.m BWK &ln ft I.X I.11 6.55 24.81 51.R Sll.SI III.U 111.14 126.n 111.11 141.9O1N4 ftr-cas EsleMn wII'M l 1 to 13.63 I9.N) 121.671 i75. 591 1s5.271 137.041 *.00 *.0 1.00 0.00 9.0

A tb IKM 1ullItl ItEI IlKM Ibl rr tall 17.U3 11.nl 121.671 125.5) 1 15.271 (17.961 .00 0.0 0 0. 0 114.411131 1z@en In 2.41331 IIET Illl 1511w tails II.n l9.tS1 121.U7! ItS.59l 115.271 11?.11 1 I.80 6.00 *.0 0.b 1.00)

M A"A .Ers Wr IU Sol Itoo in 271 Mtg 1e 435 43 U 475 4t 1t in316 Mis btir ss.n 12n.n H0 .n Iee.n WI.3 nnX U.n1 H.n *1.4?. 0-In *1.11So opratin as119 66.81 114.lX 144.1 127.71 12S.01 111.11 1Xl.0 1 .9 1410-01 10. l 1010.6In bt 1zM a Is M .21 -14.11 -44.21 -2J.71 -25.01, -11.01. 1.1 1.01 La§ 0.11 *.11339k1 btcron to Tariff h S0-110 IK ~tn b0 OW9110 1ns IL -n2.11 oc.o1 eo1.n snn2 *s.n1 33." o.n St ta nn5 nn341 bsrtne Is Vat r Sol S.11 5.61 5.01 56.41 36.11 26.n 7.61 I'M1 6.0 t .51 s.32 brs" kul' S te lw42.11 43.43 17t.06 fil .2 1 401.44 2 X71.74 2 t15.25 1,01.51 1,613.70 3.lt .§ 31,71."3444 Ut of btwo a OnnlS kstls 32.11 -2n.n -12.61 -S.U n2.n -I.61 o.n Ce e.n1 o.n ' 4o.n

M R wt r dsq. thb rin4 W digit isU the iUs sa be ifft t r te ofn the rt l am_s.

INDONESIA ANNEX 8

SULAWESI-IRIAN JAYA URBAN DEVELOPMFNT PROJEC- Page 7 of 15

31 nu C.l BPAM Wamena

20 (IEEE SIgrinN296 MILLIE IWI2 -------------- -------- ---

m "1M1 91192 9213 3114 "4" 9196 949 "11" 939 9M amm29--------------------- _ ___

294 11icse Am P lutU 1,266 7,520 7,340 ,1W 6,50 6,916 I,29m 9,96 I01ll$ 6,5 l129 tpo.ti bre-a 4n 421 4n 53 4 711 nR 15 la 7 m294297 ltW CnKclMU I MO0 .J4 0.1 0.400 6.529 0.457 .I2 6.63 0.6" 0.99 I.- 1.01M99SW.. M (u3IUMuhI.ui=l 2.16w 23.696 2.31 25.366 21.170 2405 24.010 24.311 24.13 21.33 25.41029 1dm k l t1131. 131 0.13 0 0.121 0.141 0.1" 0.231 0.242 0.242 0.31 *.tJ .M3033 1 accmtd-1 b lr 4012 m 33 m 2n 20 m 20 20 1 2 J 32 latwr 1eaeti 6f111 131 .In 0.175 0.1 0.n 0.2S 0.29 0.301 L.326 0. 6.1 6.419

36 rawg tIll £1931 s 33 U4 514 544 511 410 412 m 136 143.4Ul TarIlff 11 11illi1 1p) 30.05 34.41 41.32 62.47 196.31 133.54 12.14 174.31 205.01 .30 251.2139t C ctbi. Fm 002 4.43 13.6 23.91 29.56 29.14 25.1 14.0 S."Ml Itm Ulluuue fer la hs U1.00 15.33 14.33 21.21 20.03 n9.4u 11.U3 26. 22.n 25.39 ----- ------ - - - - - - - - -

2W 161k EITIKVIEI 36.6 25.4H 44.01 10.42 6.4 131.63 112.24 I1.24 2.41 .1 21.113it311 hrsuuml 9.92 34.94 24.32 34.42 u.n 44.31 11.94 00.5 94.33 1 44.5 114.44312 FM"s333 Chlncals 4.30 5.13 4.20 4.1 1." 96 0.40 1n.6314 Ila.t.me MaterIals 1.3 1.93 2.05 5.52 4.94 1.49 3.04 1.4 9.64 9.6 10.36315 truswrtatui 2.62 S." 4.35 4.13 1.13 1.54 .031 6.49 9." 0.61314 Uslaistratnlu ual 2.22 4.H 10.51 11.26 32.0" 13.4 14.31 15.43 4.42 6.3 1.0 311 UT 0.9 1.1 2.4 3." 3.39 3.4 3.9 6.33 4.61 4.29 w311336__ ___339 ------------------------------ - ------- ----------------- -

W W U 11I E EJ 1.9 25.4 44.19 4.12 00.01 01.31 112.44 124.36 141.91 46.6 143.4

M2 11 11 InE 1u." 0.21 1.22 3." 11.55 34.17 59.6 43.96 1.4 11.71 14.6M IrKtlut 1.19 I 1." 3.1 41.93 5.52 9.32 4 3.86 41.9 131.14 14.6324 11ni-a* bE_ltures325 5ill 111M 14.30 (1.4 110.331 121.19) 129.1 (1.41 00 0.00 0.00 0.00 0.0

32 bwatinl ltanst

El 111W (kme1 tla 14.30 11.01 130.331 (21.1) (29.36) (19.461 0.0 0.0 6.00 0.0 6.010W 1.30 IU .1 6.00 0.00 0.00 0.00 0.003i3 1 (after a) 33.13 (1.4) 110.31 (21.n1) (29.33) 1.441 3.00 0.0 6.0 6.00 6.U0

334-_- 6WAspars Pr aU odd 4)o 135 235 354 414 410 43 445 414 9 40 U2

33 gSeab*m U44.51 99.21 97.31 9.51 61.22 13.6 5.n "A1 1.11 41.51 66.623w 1atlbq 31 52.41 364.1 122.41 139.51 129.6 114.21 300.01 300.6 100. I.n2 30.0

l M 'mm as h m 41.4 -4.42 -22.42 -3.51 -29.61 -14.2n L.0 0. 0. 6.0 0.ha1len Iauuu I. will. 100 35.02Srns M In -14.4 19.3 S. n.n 39.n1 2.31 9.2 1.3 5.21 1.

361 ^rel *4.U 4.4 34." 27.21 2.n 16.51 4.1 6.41 L.4 .a L.L1w ag b_ts Bob kW 34.51 37.3 27.11 154." 3,3.3 1,2.34 1,219.,n 1,3.3 3,29.61 1,3.3 I9n.92 1,344.0

! it O . u h le "b 3.2n 4.41 -3.62 -3.11 -v -l.6 6. 01 0.0 0. 0.6

sjw to {qwomu lb l digIt I lb titalsl as be dlttersnt fr lb M ofb t slvMGs.

INDONESIA ANNEX 8

SULAWESI-IRIAN JAYA URBAN DEVELOPMENT PROJECT Pg f1

32 3331 El ~~~~~~BPAM Mlanokwari

-o 36K6 STAIEIKU246itmM3 5 -- --- - -- -- ----- -- -- - -- - -- - -- -- -- ---- --*- - -- - -- - -- - -- - ----- - -- -- - -- -- - -- ------ -- -

29 "I"3 919I vim9 91193 93194 "I"9 95IYI 9119 913 399 936 466619 - -- - - -- - -- - - -- - -- - -- - -- - - -- - -- - - -- ---- - -- - - -- - -- - - -- - -- - - -- - -- - - -- - -- - - -- - -- - - ----- - - -- - -

196 kr.Ic. ksa Pmp.Iatlm~36,16 31,613 J2,50 39,536 46536 43,536 42,519 4313 416 53 4,6 ur 93M295 Pq.3a331moried211 m 3I 25 3 3I M3 15 la1 22 33 19 129M9 hipf CimdlmM I Ml3 3.314 5.111 1.341 8.446 2.615 2.1609 3.213 3.2111 4.116, C.M1 Up1 4.11141 4.114246 luuaie lI0UuIicamuetleal 2n.w 13 21IL 3.5 MM64 22.43 2.1311 MM91 23.1 23.36 24.311 4.313 21.011 3.3429%km Sam h nid (3 ml.U 6.33 6.33 LI35 6.311 L.559 0.129 Cm69 3.695 1.116 5.210 1.33 5.36 1.311363M 1 IMaw Mgmlu-# himr 49 31m 331in9 231 3 26626 2663 232 later hfttimlmi. 6113.a) 0.n2 0.311 0.5 6.511 G.M3 0.941 3.33 33191 1.463 3.16 1.115 i.m m.311133 kwep twill 1PPM3 25 236 219 34 4111 432. 456 03 115 16 23 12 a36435 twlarl aa,iii6 23 6 61 846.11 22.99 384.59 413.21 M."4 131.61 6on."9 ad.1 8,4.46" 1,13.13386 Cu.ggtm Fen 6.46 .0. 0.4604 6. 46. 14.04 45.46 11.11 94.43 96.43 19.16 49.66 am431 Lous Ilkumui Ow hi hIts 0.46 11.13 14.13 22.32 21.31 31.41 43.33 MIS1 16.461 31.1 3.14 3I0." 311.31M - - -- -----.-----------.-----------.---------------- - ------

389 MAL WENIIII 66633 62.33 "0.15 63.45 321.41 24.19 M9.91 431.54 12.1 M6."9 MN. 912.3 3,63.56 3,04.M1311 Fesmmul 82.31 II.4 Z2.I 46.14 13.41 111.46 16.43 EU 3.4 3.63 361. .13 3o" 25.113 3.313o? Fsmr 6.9 6.46 6.4 6.46 59.l 11.3 95.24 323." 106.30 13.16 316.4 202.1 213.4113 ClskaIs 6.46 0.46 6.0 S.15 .6.1 6.30 34.6 IS.94 10.66 30.39 23.66 to.4" LO386 hsatemmu aterials 0.4 3.10 3.46 33.19 LI 36.1 2.10 33.15 361.1 19.63 41.33 63.65 41.46 49.21385 Irsamstalsu 2.49 32.66 13."6 I6.5 3.31 31.29 31.21 136.3 31.46 30.1111 23.10 23.10 24.35336 Afs.stratimeI6murat SE." 9.13 10.13 32.31 13311 £5.14 31.35 26.25 2311. 24.11 30.33 N.3 3.6-13IF Fro 0.46 2.31 2.6 4.52 5.I3 61.3 .03 9.16 9.66 196.4 II.3 82.1 1.2

310 ~ ~ ~~~~~~~~~ 10.4 .0.4 6.46 6.46 6.46 .0. 6.46 6.46 .0.4 0.4 0.81 6.46 0.46 389 --------------------------- ---.------------------ ---------------------------

333606UK 3I3IMW EM IN 55.6 43.15 56.31 .41 381.19 213.S 332.66 433.51 451.6 56.91 W. 313.311 03.31 1103.11321M M 6111111 K1lIM 3.31 23.10 32.55 3.46 13.463 34.36 63.39 315.11 349.416 13.91, 3M.39 63.361 06.1933 3. lKiitn 35.816 1.3 3S." 13.59 349.155 230.10 M6." 315.32 349.46 113.91 311.39 430.11130 fsin1 I op wNt .0. 0.46 6.46 6.46 .0.4 6.46 6.1 6. 6.46 0.4 .0.4 .0.46325 P131111111 11III4.18 In 3300 13.31 1153n.l t.n53 im6.913 Im136 l 6.46 0.46 6.46 .0.604 0. 46L

Mi bwat3mIIs4grgs .0.4 0.46 6.46 0.46 0.4 6.46 0.4 L.4 6.46 0.46 L.O 0.46 0.4M1 Voter kam 4nto 5.A 1.46 1.4 1.46 6.46 61.46 0.6 1.46 11.46 1.46 1.4 1.46 Lo39EID 1I6I55 lingo tut 39.35 2.12 21.A6 429.598 334.353 1115.91,1 1119.333 0.4 1.46 1.46 Lo4 1.46 Lo4313 hars n. 4.09 21.111 4.4604 0. 46 6. 461. 6.46 6.46. 0.36I.1 6.3 6.39 6.4633361 KIM aItw teal 11.21 30.54 31.31 11.599 1134.3311 1315.9111 (119.31 5.10 5.10 1.10 5.10 5.10 1.10

33 bs.Euemis per 63 M HeI 3 331 145 M5 32 3Su 319 3Su M6 W 423 413 443330 MbrIa hI5.3 15.411 111.61 11.91 146.91 0.51 19.91 W0.1 11.0 51.0 U1.1 39.131 U.N

31 !perIa hueti 6.31 69.9" 11.31 33.31 315.01 £13.11 144.51 14.6 846.66 146.66 84.66 34.66 33.33WI6 im m hu.M 59.A 19.66 2.1 M 23.41 -12.01 -a 4.1 CR 01 nO . .339et luceasas I larills -3046.6 6.A 3.61 620.01 I 0.66 # 6.63 6.A 6.66 #.66 0.a36larraa m M twatlah m-33.1 2".A 53.5 3.31 461.11 39.53 I4.91 16.61 ?A0 9.51 6.43 21.93

348 lutom ..w isvoer o L.6 30.31 360.1 14.31 30.51 23.33 II1.11 I.E 0.A 0.01 &.0 0.342 berap &ml's hi. am 33.04 315.20 309.1 3,693.14 3,53.20 4,99.06 0,42.46 0,614.46 1,39.4 16511 1,136 1,61.62 1,M.64.363 his of hlm,. a walmi Mtes I.91 L.6 4.11 -2.41 -4.31 .. -3.11 -3.31 0.6 1 0.6 .6 6.66 0.a 6.663.4345 10Mh so to rumdiag, lbm last digit is me, totals "aW be ii fial free Ite wea of the cisle..340 W0JM-11

INtlOIIES IAANNEX8

SULAWESI-IRIAN JAVA '1RBAN DFVELOPMENT PROJECT Page 9 Of 15

113 uoasiiseI1 P* qai f I Ie 6.21

III 1.4101~~~~~~~~~~Wto Wie AWItal 6.4gtid IlSII 11 19 111S I11S til1119 M"mIN.-.--.----.---.---~~~~~~~~~~~~~~~~~~~-- --------------------------------------------.--------------

316 Pgsigg~sgServed 'k? JL L1 " 11 1il, 2 7L T'Ii11 h.91S L.~1 a.~: 1,111 .131.1 I11.11 211.311 1131.8

it ater C.ueetlee 61 11.L1 11.13 11.11 11.34 11.112 22.31 213.11 HAS~ 11.1 I1.1 21.43 H." Mit 2131 tort:j t Chsawleire = 013(stIs.c 1111:1 u1:I 111:11 130jj 8si: 1.4 14.1 14.4 1. 11111.4 lIL1 I "1 ,,itii. n .

IU iIhccuutee-fer later 31.3 3if6 46 "My.41 31.411 33.151 33 411 39.113 10.8I ll 2.41 3461 1141.113 i. setr Pluelem- ?heusg 4 3 346 1 131 1141A I416i.3 IsiS II 11161 16221.1 11111.1 111114.1 1II13.1 III I.6 1111491 I 1I13.1

Afl f Imor Pr6c s/1g113 I i 3: I 466 416 41 Su6 M1 11i61 I ISi11 1

lsgf evomo., 1, .1 1,6lt.14 le. d 11. 14 3,1621 5.2 4,361 I,81 6.0211 6.165 0.321 1.2161 1.111 1.031 1.173j1i Cm j=s I- _________________ 1fl 134 134 211 21 214 HI s 6inI

3154ttl0asl tlvs1144 .111 1,111616 3,211.11 ).3.34 8.111 4.1. 1.111 i.131 1.584 INS 3.1in I."? 1.3216.5

III PIrseqisl 183.66 311.33 431.3 sit." Ill 1.1 oil 61' Del Ill N I 656 913 '.031 I,31all ewere H11.I 111.01 431.81 63.8 1o3 $1) Ill 63M1 3 ISII1Ill 23 Ill 9130 See

216 CPI,~caI 11,1f 41.S 1366.5 366.1 313 32 431 1314i i I III623 I's 652

ifew-gat - uee r s Is,I of6 412 110 508 Il 1.6 in5 635 176

223 ---------------------------------------------------------------------------------------------------

224 cta frtll wmr,at ~ii ,1 1.1 .111.3 1 ,6.11131 2.218 2.438 2,661 2.812 1.232 1.*:2 3.606 3.646 4:~ AC4.811

I:86 V*ufa2a*U I1 ,111 U ~ 1 1 1.iI 1.611 IMS~ 2.711 2.4*1 2.671 2.I8? I. 1 .1;I nams 1,6611 11~~~~~11.34 HeII 1,230 Il 116 1, 648 1.416 1116 I 2.23 i,i2 1.412 7.15

2!g 3utat ;,ts I1:n .s 11:1 '11:-" i6] Ill 3l its 112 I'll; :.i' I.5 '36936SliN 3"rst - 3pe 41.0111 I~~~~~6 .6460

IN) lt .:mm .auap :.fers TIN 36.1 233.11 13.1 I.31 212 3414 063 451 1.11 fit $111 1,761 1.51 1.432 Il13234 .:1use Is% ID:. I.911.1 668.It1 1.36 11 331 22s Ill 141 2') 114 MI Si4 411 M1

let :'c:qe u3ss 114.3 13.11 314.31 31.11 163 633 431 202 i.0133 41 Ill i,:11 i.:6 1!' 1.171

I, .5.~~g'3~g ~8r S'31' !:1 Ilit H 16 18 132 2l3 Mi ~: 2::s 12 Ill Al4@t.s; I .'1 1~~~~~~~~~~~~~~~~~~~~~~~~Sii 33.1 wi.' S4.' it. 82 1.i :2 4>31 43.11 44..9

t :a:.u ~~~. 431 43 I3.P 23 414Is 1371 6.23 .!% '~ . .1 131 14 64:i

tar 13~~~~~~IA .1 4 n I 1 .1 21.31 U' F2 11 0(i 63.51 9.2. 6.11 03.01 Gs261 jicruag ia0ga'atse igyguwel :4.3 1 .6 . .1 .11 13.02 is S'sC VI6 S.s 76.62 2.A1 11.1 .3

(61~~~cr.aae..a:sr 5414 -3.43 .3 lii~~~~~~~~~~~~H :.I3 ISA 6.5 0.91 6.71 221 2.:6 .2 2.1 l66

213 LvKfsgghu in Ipest:. 4itisa lii 316'61 346 £6 !2.06 AI3 74 20.'5 ?.3 7227 22632 21641 24501 777

S1 'a:e if 3starr 26i 3tvl bee As161 36.13 1.111 21.11 11.831 :.13 ILI33 8.71 3.91 6.21 1.53 1.43 1.62 1.11 8211 l1Ilt1

INDONESIA ANNEX 8

SUJLAWESI-IRIAN JAYA URBAN DEVELOPMENT PROJECT Page 10 of 15

III oPAin W5ON .to! -nCONE s"rgri. X ̂ , ;, - - :^::::-:::-:-::~~~~~~~~~~~~~Nilas. nvia1,4

'91 X ?/| | ",111 = 199011 -- - --- e- * c t I c191 --------------------- 98 0)t 90WUind git l aistto IWiIgte@ 19 Noqtssk9j.

98 PS98latsp -550.45 554k ~ DO 'siui 57Q7 --------------- 993 1914 1995s,q 1W s99 1511 2me 7601559 Puulation SQooIlr' %4 o 183

159 Pollatiovi sefvoc3 21 36.53 145.4 3 9.4 12.1 25.61 52621 li30.80 533.4 136tu 131.12 5452 544.42 '"4 62V oter cii-?ectif7s - co3 .2 5.)8 5.40 ;? I ii 520 i 5. 51 6i2A n3 65 .1 iI 1 i ii2

2 } @1 > 0 i.l l o et 1l~~~~~235 | 16.9 Z1?3?7 r rs li13 12-1 7t 0 13§.7 25.5 2.- it l7 t2.1 3 2C2 Cs98wacti? bo U1oeiCrss- ,r. 235. 1sO~ W . 22.5 7 1.11 .4 1.1 00 '3 C.- 1.2s. .6

D263 0 3 3 1 4 m . 7563 2I I 2951 I i? 2 30, j. 32!2 ? 2 2 23. 2. 2 3

255 a *'wccwmt45-f,or 14.591 1..151 14.611 1.1 2 30.001 21.01 25.011 22.49 20.001 D 0 700 19.191 20.001 2'.001 2' 331WI A"rae f 1ri ' - gINSiSA 3 13. 5.2 03. 15.3 re 10 5 211.. 3611.7 3211. 3563.9 355S.5 3734 306G.6 36054.1 404s.i ':4I.0Ut *vuage1~~~~~~If Ip/Ni 5~~~~46 14 209 330 lie j 98 40.i ~ 5 P 1 1

281 Tariff 1ki ..-----2amact3..' el Fees 66 2sS r 146.4, 31 II II 91 1.144 '.;210 liSI 1,145 2.t20 2.;16 2.4i2 2 as6285 1bs~~~~~ lpuins@i 2~~~6.13 1 391 3,68 3.7 12.1 32 so h 9! 92 06 It 11 64 54

232 67~~~~~~~~~~~~~41 S.8 3.0 .1 Il lie 536 lie III 260 2.12 253 333 S49 36525 o. I aiJbsss239 265.18 34. 5" 515i 649 .54 'P .6 )2 2,711 2.362 2,776 2.905 :-045

255 PISSea5) ~~~~~~~~~~62.94 99.52 69.51 550.26 is 574 :1 113 153 231 245 25 )1 31 155i Psr 43.7 5 .61 60 .00 05 US 536 54 l frI M 701 i2 21229t Che Ica i 34.6 5.45 i 1.12 i1e jJ 56 5i 2 4 15 34o 3 1 US ;.nHe Naiat4sag atzer': 28.34 213.4 .1 5n51 Il9 516 256 293

Z1- -lFJ-- !~~~~~~~~~~~21.i10 !2 14I I2tAl2 IS8." Si§ 10 XH t t @ 418 |31

754 4ds'sists:iou - jf(t. 39.24 42.61 11.45 55.31 56 759 95 704 121 4512113 2C4*224 la Debts ; $ htbt t0.00 0.00 C.00 0.00 II 22 29 3* 39 Si St 11 j1 Is .6

;1. 'a's ** 201.3C 2.3.21 214.12 300.83 310 525 5IN 112 9Il4e,56 125 .0 .14.i.5 .1;1. 41. 239.29 251 374 494 662 61 1.1 41 922! :avta; a '2.34 211.13 252.5 215.5 25 7 56 50606634 1713 1,60 91411 lOS4 5161IN Bear.,tm Is :s' *iU .6 3.6 6s656 15 1 51 10 6 5? 9o 65 105 0.6

277 Oharniq lace. 1248.52) 8213.54~~~~ ~~1 2 62 4 a 468 310 21611 313 261219 Ut OW~~~~~~~~~tl"5. .60 6 5 6 26L25 65245 233 21122 letr omparaieg stem (wto 1245.12 1213.64 1256.62) 16.51 151 51 240 in 1 oil is 35)236 Other ~~~~ %ke~~a~. 665 jS.02( 5.01 ~~~~ 6.3 131.1) 4 36 19550 52 122 i.o *

231 35t 'KcMs ft s bfor lot 1.4, 23 1211.54)611 1 65) 156 4 lit 35 259 lit23 5 103232 Eneem Tax O"~' 6.3 .1416.2 2AI Is4:) II1

JJlt Ieu. lime) 121-514) 1213.14) 1251.52) 328.0411 (481 *5 I"0 III 213 2 13

2In *v.fhbe pr- 0 3 Bell (Sp) 114 266 15 12 266 242 n6 36Ii 1 5 6 451 414 413210 isrs lass s. a56 75.5 6 6.51 57.01 62.41 50.51 $1.2 516.21 U0.1 45.51 0.31 1.1 52.8 54.83266 AVONq go 214.4 a 201.31 563.65 95.21 Il3.91 '.IS~ 11:t1 '1:1 96.61 ISM9 53.91 65U 55.1 9.1 93.51424 i6 a`Tss sIh pr uuv -111.1 -56.?1 -63.61 *4.51 -g.mH0.23 9.33 6.41 3.41 6.41 4.41 5.41~~2 fure.a. i Tariffs 5~~~~~~~~~2.11. 01.51 5.1 44.41 066.1 6.1.01U 6.012144 lirsm08=,0ms2.2 7 owl ?:U II:: A.'s 53.65 4.51 45.31 1.131 3.1 IIA6634920 lKrom le vo16.5 2.1 .51A -76.51 45.21 6.11 55.211 52. -5.23 .140 .345 4.913245 heron. 53 Mali? rv~~~~~tsag -56.11 44.65 2.63 5.61 1.31 -6.21 4.41 4.03 -o.1s 4.9Is1 4.13.91 4.1

ism -6~~~~~~~~~~~~~~~~~~~~~~~~~.51 4.33219~~~~~~~~~~~~~~~~~11 .:2 t't 1

.S1 16-Oct-95

INDONESIA ANNEX 8

SULAWESI-IRIAN JAYA URBAN DEVELOPMENT PROJECT Page 11 of 15

.91III PAR1 AIAPATEN tutu92 IN=I STATENESI hum epe

1 94 I telui th l F r S j a c t a d'9§ 11| sl19 s| tilly§9 -----------------------------------------------------------------------------n1 :gai,gg gt loge 69150 1tS tw 1191 II0/ III) 99 Ils 91 1911 199 1919 no

1I WON Area PSoustlie. - eH 165. 60.46 62.66 64.91 e ue11 11.62 16.42 63.62 53.12 Un.42 8 11W Pplgi Srd 1473 1163 tiii 11.01 9.3 6s71.63 HSSI 12.51 32.51 64.63 66.51 55.63 e9.33 n i.h i

MI Veter Cenetee -e I so U14 Is Im03 1USO4 t -lIThesib . n3 25.S hI 21 ht 2: kl hS 2} h2 't5 10 2S.1 2S.I

tE m hl_ iSdl - Tu"ui N0 1143.1 1111.1 1219.1 I331.S 1114.6 1741.1 2611.6 2211.5 2614.9 2112.2 2121.2 3I64.3 3243.6 3413.1 303.1

2INI eaecmttd-fer Vater 2til 2is.2 31.65 19.93 26.6 c 26.6e1 26.63 26.t .is 20.11 2.21 23.23 22. t2. toi216 Vatcr Priolecti - s- ei 11 IS 111l.4 IS4l.S. 456.6 1661.1 1311.1 2111.4 2521.4 ?51.1 1 1.5 3111.1 3566.4 3663.1 462.1' 4*3.2 423126 tl Ae" Tariff - RpNln 112 16I 163 163 III 33 131 36 446 446 I46 I66 Su to o16

nI Toriff hvess 127.16 11.311 235.13 244.91 2H 4 6I 1SS 1,3S1 1,226 1,2I5 1,121 1.116 I,9l 2.26.10 Cowtim Fees 3.61 1.21 Ii 16.63 1 31 64 94 3 145 139 133 121 I2 i2jlt Other Reveues 32.11 31.32 S1.91 19.26 45 11 146 181 216 293 369 445 436 4S1 SO

t 1 2 ~~~~~~~~. ................................................................................................ ........................... ii ----------------------------------..................................................... .... 213 Total tpratlin Revenues 161.11 179.97 291.53 314.06 21i M13 669 1,036 1.561 4,56 ,'ll 2.275 2,311 2.415 2.11214115 ersonnel 36.12 41.52 S1.13 S1.31 371 t 19 :21 1'i 164 1I ?.1 211 25l 261III Poer 4.29 6.54 6.11 1.30 I '3 IS : 24 0 3 I3 3I I1 41247 Cheical 13.13 14.64 44.66 1.47 6 26 32 13 46 Sl iS 14 I 90 i s246 laintes e Naterils 1.13 6.11 22.4s 46.76 66 I6 If i6 of 1 lot 4?22 tlS II IS1

1l 8 Aeinistrat;cn - General 31.26 41431 12.46 44.33 42 61 64 :63 '24 III 56 Y , 20' , ,22 od slits I.63 61 n.66 6.03 6 12 20 23 3S 3I 11 11 9 is

t22 letal Operating Fpens 92.13 47.11 136.41 161.37 III 251 3:6 336 461 sis !I 141 736 1I 649223224 cme Rlss: before kerec. 74.86 62.22 1i9.1 11.63 4119 21 Ill S 1656 .099 112 1.162 1.321 1.641 1.611 2.615221 3wsreitlato 6.63 6.H 6.3 12141 1 12 I44 235 219 ItS 311 432 II SI33 511226 Lrtiastin of ether ssuu 6.6 6.6 63 6W I 9 I 9 9 6 0 6 6 e 622 herIat,l lnco IWlssl 174.6 62.22 419.42 ". 69 14 2 413 453 192 79s 11S 1,l14 l,1" 1,147 1,492221 Owerte linterest I6.0 6. 1.6 . I.13 I I 6 0 0 211 261 249 236 222 267III ett 01er11t1tinees ILen 74.661 It .24I 15.2 , 969 514 266 4A1 463 192 212 114 946 124 921 1461236 Other 1.8com ftosa - Not 3.11 4.14 2.09 4.62 63 34 57 5 461 415 462 IN3 231 214 234 set n.Km (Laso ut foe Ta. 17.97 63.4 161.17 91.94 lit 264 41 15 89 632 616 1,4NA34 1,15 4.99 1.51132X Incus ian 3.63sl 3.63r 0.96 6.n3 42 9" §2B4 166 S11 II9 233 231 391 31 514 s:7lt Ret :cCeI ILcsI 1111 63.46 46.11 91.9 91 111 315 3041 449 Itl :3 Cl1 757 I.6It

236 1A-;0S 41 CONPAIAUIN:11 *- --- -----------------L'o Aif.Epscs per 131 So0l 11 in 1@ 124 21 1t IS 191 10 225 233 2M1

j1l "rtil* Ratio $1.4 $5. §41 ACU 5.12t l u.61 v.u8 35.1 lo. 29.1 3S .t 31.11 2i SX 31.01 323 M I9 s246 Gerating Ratio 1S .s 65.43 46.51 69.41 15.71 64.21 52.93 66.e0 46.3 11.91 5 1.43 41.5 51.23 13.6l 41.9il Net ;coe on Ret oferrlevenves 46.51 3 1.5 14.21 31.21 31.05 31.5 3.41 4 29.5 31.53 2V.3 25. s 32.13 31.11 31.13 31. n282 lncresses :4 Tariffs 3.3 51.11 0. 01 6.0 6.6s 0.01 0.03 313 6.01 0.03 21.33 6.61 1.0s 19.6383:xireose in oerst;e3 ; 2evees 1.33 61.33 1.53 -16.33 169.71 61.23 45.3 S1.4.1 6.21 4.1J 31.13 4.51 4.6a to.6244 M rK ue 1e oter Solo 3.23 9.33 3.11 -'3.103 5S.6 41.3 43.4 14.33 6.23 S.Is S.43 S.1is *.n 6.n2215 IncfUSe 1s itter PrcKt;est 9 .41 11.61 5.3! 13.43 44.43 6.21 S.S .t St 1.1i 4.9I 6.63'S1 Avers Ast a 7ete he 129 1121 1 2119 42y 1335 Ili 3342 SS0 6751 ISI7 5212 6934 I1SC 1552 1I 42 t a 1 o Return en 0Wev Assets :4.13 S.53 13.01 .1 4.1111 12.11 12.3 7.31 11.71 I0.!1 9.33 13.31 44.93 6.913 13.41

.1 ;2-oct-:-25s

mud grut ~ 1.i~ 1.1w 1.~ ~ ~ us g- u-t- us utU

' ,,:, :, ." s ' , w. .t u ~ U: " F u t Ut- sail u5 i)fib"^1A I I a

Ni S 9 D1 136 n1 tl 311 u ntl t Ril U' I z. *Ss *1' *1- *1E1tUL t UU I Obmu ust me sr;i u-SP mrst tt " 51t 11 u; n ts s~ 33 rsT sri Ue- s i sjj tj 9 6f Ul111 is'11 111,- 39 W134fIgs

319I U9 S U1S IU9 SU9 s" *i tU mt Inl 16 Ul * i Uli mna U It,t S11g

|§%~~~~~W ":A a-i it9"u1 n e sAs * JXl-I 1-t |1l'1 CX U ;f ttt ttItt m' |t ttt etl lS |~~~~~~~~~~213 1":.t1 n L g | *:" ,z!s,L s'

531 III 51 911 331 S31 3t1 S51 131 161 131 t61 Iii Ni 611 1319ii @13 UuLge'I w

W8' II t' '' i SCt Gll Wt at f l a I bI oznGn 14 oil fil piull goz 2s! tI1g £l its US IN1 Is? ils ni tit Is III) (1t3111 (Kitl .. 1 lU, :"lsl "ml S IN Kg

no t1 1K'I ll si it Itl 3 "I 61 1 0 I 'IU US1 086 i "ml2 WI1'1 I66 No3 NZ'I It It 1 MI3 tit tSt Iit 1191 (to-IlI 1U91 'I t I III "'1 I b ^ m1 .lv it(

l. " IN Utit1 ttIItt1'9 51 961 U 11 61 61 66W ' I9 6i Km ' Ut WI I o t al43 OK1 699 III U1,161 Wool1 11311l 1.6hi*i

191 H1 6Il 111 full t it SL tIII K "I :i 1 llU -i tfl101 t 01B 14Stt IS; It; lIt Nt tlZ KZ tt tU IIZ ISI H lil 1111 SZ'tS H tt I!J1" "18101 lItUR

I11 ii In its lIt 1It lit 1L It? lot SiZ 11119 "'ti K's uI@ les I ant t ISl ItS lLt lu9 11l t1 ts1 SE1 6s HIll UK I1$ l34 11, t I

9161t'i ht5 1t'1 Hillt 'gill 1 6169 Ili to Itt tlt L'l 11 1 1 t35 1 6 t 9916^3 h''s94e t'wt II,

so! 5 oil, tit i I 11 1 S m " I o It-s K It US ' l1t Nl 'A ' 111391191 fll

U1 got at; Stit lo Go 111 if1 361 "'Al U99 6113 It' ll;d I&1.1 1s it i

t6t;il03 It; 1U ' SIUS S1 S11 I61 WI lt i ti t' t I Ni. I11 t11 6 t 6'Sit 6l5 I h';l t iti°71- 19213 tU

1tit t 6 1 1 t *:C If It *iSt i0 t 6 11 6U3 616t 9 61 141 Wdt .Jg10 Il*

It K l t it t toS St S Ct of St tSt tEt I I t l't W1 U 14 K' l tt t ittS xw3/ &tl/J w.llt_X ILU

te- 11 3 itt Sllt Ill'? I'l ' I V1 61S1 111 l939 636 I11 6 l 6' 11S 63 1 U'? 3111L J ai S ld ;boj -t t

oil Sit IN S3 U n 11* oil 19 si n 61 Ult lot ss s 361 U' W- S .410a I'ln'"II loLl 5131 1111 U11t 9L,1 12£ (319 13l91 116 461 59tl I'll' U319 63311 t0 1 9 5 - "l151, I1613i It 1a 359 Wit' "I'l *3,1 313, 169,0 W 11 16?'S 6121 101'l 331l £1'l 13'1 tigoi l- 55*3*IIi I ll

3313 131* 311 1961 11? 161? 3611 £69 1S611 1l!il g Uz guy 193 61351 dl6il " I P61gQ4j U6!1PJds "1)33

ON16169t 19199t 91619 311 3111M ILISlE 63111t Vff1t I'ttil UIEV 'i69!l 311ll 01911 6111 991(1i cm 91133 - pi" 1.10£ Cal61 661 3,11 161t 611t '1( 6'11 11 IIIt iI O'ld I'll 511 691t I'll la3U1l3U I 6It'll £3641 96 916 366l I116 96£1 1i 361 to'3 £13 it's 693i 56 9469 N - 365131663 Amiss la

311 310 311,6 19*3 3113t 3113o 511o 113 It'" WIi; 5*11t 515s a'" II's 110s paiq u132194sit6

low9 OR13 $6l6 1699 £164 1366 9613 Hit1 l6611 93 16611633'ot 9113 555 0USP 55 (3u@ 61

_ ___ _~~~~~~~- ----- --- ----- --- --- ------- ---- --------------------------------- ----- --- -- ----- -- ---- -- 0 II"161 st;0 1 3 * t I A a

---- … ------ *----169~~~~~~~~~---------

"On wiil 66 171 3 1U-- 6661 SKI SKI jUl~~~~~~~~~~~~~~~~~~~~~IVNI No 9.9

q3;dq E U I ' S 1 3 5 3 1 1 1 1 5 39025! ,69

Si lo Zt. Ova .L)Afrosi i3adO LAaLQ 1V1 VAU 1 viIXi-IS3M IS8 XaNN VISHNIoNI

INDONESIAANNFX 8

SUILAWESI-IRIAN JAYA tlRBAN DEVELOPMENT PRO.JECT Page 30f 15

AC TAEEit pollsn~~~~~~~~~~~~~~~~~~~~Pg 130 15r* |l 1

I X X X 9 E | § @1 t 9 | 9 ' N t ~~~~~~~~~~~~~-- -- -- -- -- - --- ---- -------------------- --------------------------------- ---- ,------------_-018 luiteg Amh,tad usiltodt Suopigi 1191 1912 1"9 9l4 19" tIl ill? tl9 3m Mte!Fimies - 1 125.72 1363 134.34 MAT6.f51 14. 1 St 151.4 03.1 1iu.* III 19's xi s o' a1Watle. $W1" 9.t1t 10.41 .111i issi 's.12 ' A, 153 i';i ' ' Ii.' 6lt AMIS "L Si 20.6k

I Vot tmItcim - M .2I? 2.4 2.06 2 '4 3 93 5.61 1.92 11.13 12.46 13.32 141 1 1 5. 11.16 I.I 11.51i, mIl1' 3( 2.lttitsw l.'I 2 6 20.0 21.l N .l 1t1 t 15 t 1.S h.lN l z 4.' *35.4 517.1 601.4 '0235 ttSt.S 111t.5 S1t6.9 3129.9 IHS. H 4 61..' di It1 .411 aA'J

ni I MCooti-taM Oster t9t 9.356 s4.66n 43.1114 CII 46.6211 6.6 in 32.56 2M.15 2M.6 24.11 n.611 2n.s11 21.911 .1611 n .92mOno Prdtto - 1bk,sa.g P, 113.5 963.3 W1.! '6ll.5 11,6.4 2266.2 2934.2 0066. 4111.4 4453.2 4151.1 492l.5 5231.6 sill.? 6164.16u133 &:,r "^;@t iF rz" 246 2IC 353 3H3 363 456 456 456 525 US2 MSt M m s s t 5

Hil tariffh ms h13.2? 11n f * 1NA 22j44 Ill is? 9i 1.154 1.643 1.111 I.Wl n 1 L .414 2.611 3.464m KW ,.uw 16.1. 23.03 22.16 16.46 1 ifM M 3s 11U1 4l 462 623Is 1T681 bwitiq3 h35 i5 136.11 131 .1 266.62 26.3 45 113 '.249 1.644 2.311 2.413 2I.9 3.116 3.161 3.31 4.356In Pusn 311 31.1 s 5s14 62.45 It M 16 IS '163 12 144 5 11 M 2119 IFew P5~ '1.12 22.15 23.11 56.6 9 4. 61 61 l :5 ,'t. Ck i i C.6 2-Si 23.25 62.6 11 s34 21 2! M 213S 9 S S,ftinomm ftwill 1.11 14. K l!_19 35.14 4 I pi M 119 214 291~~ft 1I 3X bul tratin {E- Umr 1'.63 U.tl2 1.1 64.9 I 23 21 2 1 3s 44 If, *, 1 Not1 Ts3 i 114 wbistiq (Imesa6i 92.21 1'.1I 233.322 l III J61s3 S" 669 4 13s He4 it6 I'M 16 1.12 .51Ji 4 1 up egin m hfe rgt. 461 45.22 1.66 1.56 M65 491 4 13 11,35 1.11t 1.51 23.m 2.191 2.31 .ilNt must'. un list 3.11 95 U.SI t2.? i I 146 2 349 t t 3 Jtl UlI El 311

; u iR |IJ IA 1" .6 51 I"-ll} 1 1 I I | li 6 61 m ,.5_J ~ r ~~'-"32528 30 1 1 t0.|1 lit 544 t13 IN 1.11 1 1r 1i 1 no nM ISUb tlowe.st 6.A 6 6. I 2.5 I ~~~15 *1~~~*!~Isl 3I.52 I 1-o 1 66.66 13 1 * ,

-;m w I. 1I AFl E ! l r: " 11A 13 3 339 65 St 1*Ihi turn hint ~~~~~~~~~11414-111 3.66 6.161 MA56 In 664 36 516 M6 1645 6o1 16 M1 15 - ,

63~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3

4. PI: 1 I 111. 3 11s 13 I nI 3 I 1! 4::::::-::: ::::::::::::::::: :::g:::: .::..:: .z ::::::::u:: :::::::: :::::::::::::::z::S:::: Z:::S::::SX:::zu :tZ?ZsUtflZZZ? SZ ::::::. .. _

t4*t'"~~~~~~~~~~~~~~~~+11 1.sVA. 9

INDONESIA ANNEX 8

SULAWESI-IRIAN JAVA t'RBAN DEVELOPMENT PROJECT Page 14 of 1513; *5 aI vPits46 mlhWmru SfArEuEml

136118 1161, 16U 1 1!/9 1 IM/9e 5W - r t j I c t tt----- tt--- ---------------. ht let uud i h it 6 n 19 tItaIs, 1"2 1313 1,94 It" 19 1111 13 m 26e 2Itt hrStl are uIgblittm - IKC N112 5. .U1. I 13 75 S2.21 6.l 6*2--- --4.1-IISPsst.Iat spk n n. n3 U.3s 40.61 3.1£ t1,1 U.U surn ssS n1. ss.1 NOt ssn sn.sn5s319 P isio sr" 9- 38 l QJ 40 3.18 51 1 I 533I s i 11 31 11S. is S.w .ntlw Cowtims 98 4.17 ~~~~~~~~~~~~~~~~~~621 535 696 C.1 I.116 3.11 I -6l3 bS1i. t u_ lg r - l I 2 n: 1.i 2.1 11.1 16.5 -1.l '.91 6.' 1.6 1.1 : 13.91 331.6 :6.1 11C2t 15 itct_ttttt- t Ut ' 2 1 .11 32.t t 31.311 U4.;il 3I.:L1 34.2tt i l.9.1 35.911 21.141 26.531 21.73£ 25.631 25.331 21.64 i!. :L261 Sitf PI-t ttl' - wrdsac 'i 429.' 1415.1 113.4 131.1 '43 .1 2 1I.' 2254.* 2343.1 2322.! 2513.7 H'.L? 2615.3 2111.2 2613.6 211-.116? awm 'or It an 2:: 331 DI 235 421 421 42 15C 3IS I 153 1 669 1 1M6 lb,f hwm,~Ii 211.31 3121-1 454. 2' 2 61 6 113 31 1.158 I'll? '136I !.IIill uuciim lees 1.31 I." '2.93 26 . 6f n 31 i3 39 14 u of n ;621- rhII ._4t.15 I3.1 1.41 4.15 6 12 11 14 15 19 is 23 23 24 nR1U lelAl Oretltu hy"pe, 32S6 213.23 392.s5 431.12 334 133 61 4U l4, 1.312 I.11 1,25 1,2S l,1 l.U_-6 n1 n nrs6 n tt16 n U1 1 4 2 6sof n-86 6A 6.6 M.t 4 o1 a 21 123 1 u1 12 to 123 lit 112

l ha haIs3 i f4g IN 13.2 .4 13I 6 26216 314 415 4 I11 t11 146 NI 5?

I36trgcatou - 6Krb .U' 31.11 6.3 U3.111 Ad t1 6 6 N IIpl r mu .66 3.36 6.36 6.36 M 44 I I 3 6 n nfotl ortlu es hI n 511 131.62 225.64 111.2 Si 24il 23 6 415 362 432 m1e M82 62U sIrt :q : LS u g . 11b6or 6.18 36.61 225.36 11.12 Il 2: 236 123 32M U' 233 243 '3I 34 lt OSunc ievi 10 *.K IA 1t.l3 tl 11 IIS It1 t3l 21, tS1 ll 3 11Uttlvistin d *ttr 6ts . u hi 6. 1.3 1. .1i 1t 31 11 I I II 2 2 tI 16 l I ers1 11.93 U.l: 231.35 161.12 31 2U 21 3l I2 2t 61 114 48 I"Iin i 6.I6[s.3t 3 3 2 .9 9I 36 lo. I I 1 1 13 I2 132 Ih 4l 22rmrn SIsal 61.11 63 1231.0 16.12 is Il M11 164 "1 2 349 36 1264l |^t$tTLifettue~~~~~~~~IA .':1 n 9 t 3: ? |14s 8 sX aa 293 1 Il 4ts42 33 gSr lo lss .~~~~~~9I" . @@@ .5@2 n s a 31 g s 1^ 011

-E " "'"''. "-.2s 1 2 12 St... Iz 1.. 2

Mt lcmm (Low) M. 121 23-.3 11.6 M 7:R M 4 : 2| 1"4|l| : : 131 146 16 Is$ Ill IN IN 321 261 161 Nt 1361 36.3 ~~~~~~~~~~~~~W 4.t 46661 41643 41636 41.

.U8 4l.ft U: 'S :: .* 19- g

m il:1 1111 ,?:3 4:3 :11 J:3 1: 11 :3 : 1:,11,636 1421 16.1113 .1 Il 1133I 'I i

...................................................::.z... Wi

6-:15 li Sl ILK Iii t55ls ';is uia; Siui t 5? Nil It5 a. Oil s q L2 CIa'c ms: iii as aSt:g: usl all S z ig iii u.t ' us-a sill *I-2NSJ mis wm} iutl lls *~i tSU! 5 Ht5 tSil tIt 1 U t t? U. Itl IHI Si' 0!j iA' io uI: Ii nt:111, Ugs AI I $pn %.' ;st ; p i It ;s; ;.I tls : 1 I; Vn 11 ? A a

ttH 1 . S 1 . !S V 11 F V K 'a v r *j s ' ; if K -1m s K : st:lt, U l.. icEi t S Iii I cui itU VI it if nt Isl tn nU Uu SSt 1Ut IVI Ug il - t u i *g

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.. .......

. . I

It,

bl~~~~~~~~~~~~~~~~~~~ 2tl *l 2 221 11 :n21:::::l:2 t § .....SH S *iLvd iC!u -Ml {@

isa iaa 'ma1 as" Ms sI st Ms si I II ;,s1 nsal si-n (51llip it'll (331 s : iNI" 1s; its "I , s at, si ti 11 I I 11 1 l'S Iit 12tillitit t1Z1t I tt tit I" sit ER ei1 1Si1 to tn-t l noM I "I lot fit Ki. s,i B; ft i *tit *H tI t:s 1 1 gt i tIU

3tle ite W t ll iil s OR all Ill 11 1t I' I ml t16ii Ci inv si. Ill o sZ :11 1111 lo

n t tt t U 1! U a U U *~~~~~~~~~~~~~~~1 1 W- ti 0tt t-SI n t-: I"'~~~~~~~~~~~~~~~~~~~~~~~~gt St It N-*11'1 ' '1U1 9:1'1 X . t .1' 1, U 14tt Uut-1

tIS tiN tl I I I Cli iii tit Uli Uit sIt iSt it rsu 11 NALi l" Nl I

tit" In S tl i-|t @ttt §l t$ E"1 In tl§ 6: I"t K-l W-| U-II t-"S t @UI t-l - l -"i"

t II 1 as ts K It IIa 11 IC's liJit ontit t' sa "ii tit :i Ill N ii 1"Iwlntso .UI UU1 tit Ill lI t tUI IUI IUI 5_ I"!w ta t5lt3 oP~I pi PSSiof I It is Is ItN a: *IIai uutre' fit

--------------- -- -- -------- ------------ -- --- -- t-- --- ---- ------------------------------------- -l nu -l - --- - -- - ----- -- l

Sit " 1 M tit fog' I t 0 4ttll

a11 I'mis el

a sil sss goJe

l

551 Sil til iS 0 tIllit I'tiii guitt rsrait 3gu.1i Sir Lis gAM ,:1 .4S t' It v Ill~~~~~~~~~~~~~~~~IPSa,*35 l

U I I I. 1.1 11~~~~~S .2 . 1

u-I Is s lus usa1 usi1 Ms us1 Usa usi1 uis . t... p i t' ll v snip W

~~.L ff51 (IS 555 iii 1: I II i- I:Ia ri. E '.-.---.-.-.----...--.---- II...........

Nib,131111 imaavl mut h

VI S3MOUZI

INDONESIA

SUIAWESI-IRIAN JAYA URBAAN DFVELOPMENT PROJECT ANNEX 9

Page 1 of 9

UJUNG PANDANG

NW 1TEl iRPfLnr U I REPELITA IV REPELTA V IREPEUTA VI TOrAL A

63134 .4/.6 SW S66 66137 67186 *It 6930 6011 91092 WM 9 S4 2Mb -11016 1-6 119 _ o_Ill

SOURCE OF FUNDS-ROUTINE POWECTIOS poo:

2 Tans 136A.4 1606.0 2013.7 20963 2667.2 2606.S 30440 3609.2 . 45. . 09 -'26T 24693.6 9-9%3 s5baMo Chgu9 1512.1 2176.4 2672.6 2996.7 2760.0 278a.0 3117.8 3667.6 4174.2 4506.3 47765 565. 0 607. 26026-1 II_I4 Ohnaso.ntarprts.ctc.fcidF.. on Lem 601.4 367.7 400.5 367.4 839.0 99e.6 1466.4 19500 2081.0 2209.0 2346.0 2491.0 2046-0 1172.0 602'

6 FEDAJPN3 046.6 1017.7 1036.4 1208.6 15230 1566.9 1768.6 21104 24269 2791.0 3209.6 3601.1 4244.7 163633 E.0

6 800 66.0 7971.1 10912.4 11617.9 12132.0 13629.0 16564.6 10796.9 18641.8 21135t6 23706.7 2596.1 262.6 120114.2 12.2t

7 5an tatm n on* TOTAL ROUTINE REVENUE 11101.6 13157.0 1700.6 1206.6 19611.2 21660.9 26360.3 27z3.3 31046.4 35176.1 36046.b 43637.1 46366.2 197671.3 11.F

4m louU Exponldts10 C0me Chiet fxcutlve and stals 3607.2 4221.2 8316.611 Olnm.PU A 606.4 1261.1 1047.112 Dinam-dinm An o0mrs 3042.2 4456.7 636.13 oCs 666. 1366,1 1462.6 _

14 TOTAL ROUTINE EXPENDf mo.3 . 1471.1 e1se.0 161o0.0 17667.0 20797.1 22.0 26160.1 23366.0 32126.6 30b?.7 41434.6 40476.9 1

ROltINE SURPLUS 1611.2 IM.S 206. 21616 3661.2 4013.9 5,103.2 4604.3 6476.2 5621.1 6117.7 _666.4 6331.6 31046.1 6.6

16 Local DMl Income 0.0 0.0 70.2 7.4

10 TOTAL boLOCALIESOUICES 1611.2 160.6 2372.) 2624.2 3661.2 4013.9 6163.2 4604.3 6476.2 6621 1 6117.7 6e964 69316 31046A1 66

bus Dow Sa4ma 11113.2 tI0.9 31.1* 666.7 603 1660.1 1676.0 13616.6 1602.6 2034.1 1671.3 1918.6 161.4 6376.2 6.

C RNWTION to DEVELOPMENT 616.0 OM 2U7.e 196.6 3046.1 213.6 3566.2 320r.7 3663.3 3767.0 4146.4 4760.6 6070.2 2167 S 9.e

OTHER INCOMEis Cantei-9ran,s 0.0 0.0 0.0 332.4 646.4 1773.3 1900.9 2014.0 22607 24863 1700? 23120 13i24 10064 1 -

le Procncia - grants 37.6 324.9 0.0 309.3 71.1 6e3.0 790.0 s643 6600 1156 1 9536 9973 11438 49026 6.

20 Loans. Locli (ROI. inpws-pasar. other 246.7 0.0 500.0 960.0 0.0 1064.0 2201.0 66.9

21 Lome. ODMtbanE IUV.IOP 2.7 140.0 66.o 1164.0 1100.0 1119.3 73.1 2666.3 6000 2700.0 20000 9000 2160 0 6960 0 1.

22 pigso (Geneal 243.7 2147.3 3363.1 276M.6 3031.2 2412.7 2636.7 6637 2603.1 2971 3 31495 33385 3S386 1S601 3 -6_

topie IOWP 0.0 0.0 0.0 2661.6 2642.6 3k . o 3193.6 3365.4 15116.4 0o

Oierelewaiaya 0.0 0.0 0.0 1290.0 1446.0 632.0 1375.0 1567.0 s29.0 o0.

29 TOTAL DEVELOPMENT FUNDS 3401.6 2M5. 610.3 746.8 7666.6 9142.1 11196.9 16196.9 1406.7 1739261 16766.3 16697.6 16667.7 601.3 4.4

DEVELOPMENT EXPENCITURE24 htpe-aEpndlhu.e(nonMOP) 2403.7 2147.3 2063.1 2766.6 3031.2 2412.7 2636.7 66.- 2031 2971 3 3149.6 3336S 36366 156011 4.

26 Economfi 236.5 164.0 40l6 469.0 2094.6 916 s

26 Seuos 66.1 163.4 167.4 2466.5 2222.6 2291.0 2004.5 2661.0 2643.9 30145 3195-4 3367.1 360 3 16031-2 31e

27 aGeneal 670.4 662.0 1106.9

26 UubSn 171.7 3. I 1967.6 2471.6 2621.0 3?1S.6 4271.0 627.6

26 PMP 8343 1 161606 9S0359 9673.4 11437.6 6070.6 o.o0

36 TOTAL DEVELOPMENT 3129.4 3166 0462. 7666.7 774.6 6912.6 11066.7 16156.7 1300.1 17666.4 1l506 16669.0 1666. 62713L 4.1

RFKOUOH FW11 Mf 162.0 64.2 109.6 303.0 66.1 210 1 439.7 529.9 5W.1 634.7 460 4 374.9 673.5 s6. 1

J CAMSR lIE3DFOpR"W6qD S4.2 109.6 303.0 u6.1 210.1 439.7 U29.9 eo.l 1 34.7 4eo.4 374.9 5t3.6 894 4 =94 41 9t

UERMICE COVERAGE RATI 1.0 1.6 7.3 3.3 6.1 2.1 3.3 3.3 3.4 2.9 3.1 3.6 3.7 16.6 2.

_p 54.2 0. 363 61 101 43.7 529.9 1 6 4. 34 5. 64 64 r

INDONESIA ANNFX 9

SULAWESI-IRIAN JAVA IRBAN DEVELOPMENT PROJECT Page 2 of 9

BITUNGMUNdKWALCIFY

.E ITEM IREPELITA III REPELITA IV REPELITA V |REPEUA Vl TOTAL 4.-SOURCE OF FUNDS-ROUTINE -: 1o 6t2Tans PrAma~~~~~~~~~~~~~~~~~~80cTU pEw0O2 TaICs 102.4 88.0 609.8 63.1 58.1 66.0 77r9 109.4 191.1 175.3 195 2051 2140 941.7 443 rie. scarge. 1464 131.8 134 9 134.0 166.7 168.7 233 1 301.6 437.3 60.4 560.1 574.2 6695 2e66.4 un4 De'am.in.4. - nee.etc 12.8 7.1 11.0 10.3 2.9 13.7 4.7 6.1 64 6.7 6.0 6.4 of 30.2 0.

6 4PEDANB9 14.6 84.4 89.9 167.7 196.1 196.1 183.9 296.6 366.9 427.1 612.6 6150 7380 264J6 20.O So0 469.6 534.8 769.6 769.9 774.7 845.0 1022.4 1136.0 1193.6 1286.1 1341.0 142115 1607 1 6726 ' 6.7 Sht teWm kas

_

TOTAL ROUTINE REVENUE 79o 6464i1 1086.2 1146.6 1196.6 1218.6 18220 1644.6 2143. 2361.6 200S4 2022.1 3064.3 13017.0 10.fkma Rouum Exp adwuaw

10 CouncIl Chie enowliv. and stal 710.4 733.1 930.1I1 OI na. PU 6.2 12.3 12.812 0b1n-d,nas AN othe 20.4 24.0 24.7i3 Other 549 62.7 tO.0

14 TOTAL ROUTINE EXPENDITURE 793.9 632.1 1067.4 1070.1 1131.8 1196.6 1469.6 1732.2 1861 194663 2001 2186.9 2318.6 10361.0 6ROUTINE SURPLUS 1.7 14.0 7.8 76.6 00.7 09.9 62A4 11l3 307A 436.3 6423 636.3 746.7 2666.o 45.

15 Local Devhl Ime 36.9 16.6 44.4 26.3 2.6 0.0 0.0 0.0 0.0 Oft 0.0 0.0 00 0-013 TOTAL bom LdAL IESCUACES 38.6 30.8 52.2 100.6 69 3 09 62.4 116.3 307.4 436.3 642.3 63S3 745 7 26660 45bee ODeb ServIce 0.0 0.0 0.0 0.0 0.0 0.0 0.0 7.8 19.2 1902 16.6 16.6 166 79.4 16CONTRIBUTIONoIDEVELOPMENT 30.6 30.6 62.2 100.8 09.3 09.9 62.4 108.6 288.2 416.1 6267 61s7 7291 2617.8 46.4 O

OTHER INCOME1 Centsrai ants 620 40.6 26.4 30 1 37,C 30.9 00 0.0 230.7 480.0 11183 6320 2606 2753.619 LrWo.Lcaal D In 0.1 67.6 26.0 96.4 67.3 152.0 133.0 330 470.7 2.20 Loas. Local .presa.oha)

21 L2 n MOP 126.0 160.0 1760 2000 2260 6750

22 hpa (Genea 2.3 754.7 1208.0 499.4 476.3 27607 200.0 1405.8 1286.2 1362.3 1444.0 1530 7 1622 5 7244 6 2hp" kg IonOP 0.0 0 0 0.0 23062 217. 230.6 244.4 2590 1166 5Oteshw adya 0.0 0.0 0.0 80,0 80.0 49.0 50.0 59 0 316 0

23 TOTALDEVELOPMEN FUNDS 122,9 826.1 1254.0 030.3 662.0 317.6 320.0 16433 2396.7 27M9.2 364.6 340.7 32143 16386 16lDEVELOPUENT EXPENDITURE|

24 DEVELOEEnd TeXnPNDI E I 0.0 764.7 1206.0 499.4 476.3 276.7 200.0 1406.6 1266.2 1362.3 14440 15307 16225 72446 2725 Economc

26 Socil 49 S 23.9 31.9 I27 G.m.a. 1.5 2.9 1.0 128.7 105.0 99.6 117.2 142.1 176.0 220.0 320.0 3800 40.0 1508.0 22626 Ukban 79.8 44 4 43.329R J 851.6 11572 1935.1 i5068 1-i.-3 6605C' _ I30 TOTAL DEVELOPMENT 130.6 826.9 1262.2 62,.1 681.3 370.3 317.2 1647.9 2314.6 2736.5 369.1 3417.5 318668 I357 1585i

SALANcE .0IjGHUFOF.M _ 9.2 13 IS 39 o0 74 37 116 0.9 18 31 5 269 l6l 69F 9679AL.ENcECAIVIEDF a ,,~ 1.3 I.S 3.9 6.0 7.4 87 11 t5 6.9 1.8 31.5 26.9 1a 1 456 456 460*aDEHT SERVICECOVERAGE RATIO 0.0 0.0 0.0 0.0 0.0 0.0 0.0 14. 16.0 22.7 327 36.3 44 9 336 I 6j4S.owc.'s Hmsoi,~ DiL. .jt.pe~ FY rm'. I h he.u b~,~g ,eahnon rtpf .wcu12 2nj Je b IUIDP' r.p.m

INDONESIA

SiLAWESI-IRIAN JAYA URBAN DEVELOPMENT PROJECTANNEX 9

Page 3 of 9

MANADOMUNICIPALITY

INi ITEM |REPELITA III J REPELITA IV REPELITA V REPELITA VI iO.TAI Anu 1_____________________________ 83/84 84/85 a6/se 86187 87188 88189 89/90 90191 91192 92/93 63/94 94196 96/96 91 96 Growth

SOURCE OF FUNDS-ROIJTINE PIoJECToN0 PERIO2 Taxes 706.4 687.6 658.5 7130 902 9 16830 1459 7 16878 17900 1879.6 1992.2 21122 223- 9 100135 58%3 Seivice Charge 948 4 1060 7 1054 1 1122.9 17614 2263 2 2818.1 3484,2 3892.0 4209 8 4710 4 4989 3 5282 s 23083 8 6 7s4 mnas. enteipseeS. eic 51 2 59 4 160 6 144.0 170 8 400 4 172.6 1850 196 0 208 0 220 0 233 0 247 0 12040 6 0os5 IPEDaPsB i758 e47 1 1695 269.0 613.2 412.8 540.4 9694 11734 1244.1 1318.4 13972 14808 66837 48t6 SDO 1263.6 14235 1878.2 1918.4 1979.3 2071.1 24289 28766 2876.3 4147.9 45419 49734 5445 9 21I854 23 67 Shot term loansS TOTAL ROUTINE REVENUE _.-- 6 3478s3 320.9 4167.3 6327.8 68306 7419.7 9203.3 927.1 11689.1 12782-9 1370AI 146956 628004 98s

less oloio EWendelu?10 Coucid. Chwf execultwe d slall 1633.2 1917.4 2J86.4I Onas. PU 272 2 198.4 238-2

12 Dmas-denas AM others 122 7 137 6 156 6Q3 Other 388 4 338 1 375.2

14 TOTALROUTINEEXPENDITURE 2416.5 2591.6 3156.4 3420.0 4202.6 6143.6 5484.9 7380.4 806a.6 662-3 9o63.7 10s587 116870 l871?4 96

ROUTINE SURPLUS 1735. 886.8 764.6 747.3 1125.1 1687.0 1934.8 184Z9 1868.1 2663.8 31192 3123.4 31088 140831 II15 LocalDevel Incorm 113.1 24b4 116.8 60.6 60.6 44.9 0.0 0.0 70.0 70016 TOTAl bhm LOCAL RE'sOURCtLS 482 1132.2 a86 3 807.9 118S.7 1731.9 1934.8 1842.9 1938.1 2863.8 3119 2 3121 4 3108 6 14253 1 110 0 .

bee Debtswlae 36.0 34.3 29.8 38.8 38.8 40.1 37.0 136.3 227.8 m.o mo 322.0 3220 1315.8 I&9.

CONTRBUUTIONtoDEVELOPMENT 8132 1097.9 861.6 769.1 11469 1691.6 1897.7 1707.6 1719.3 2941.6 28972 28014 278 1 128373 103

OTHER INCOMEl8 Cenkal - grants 960.1 1737.7 23278 19959 14743 95l5819 PEovir-cial - grant 502.0 745 0 1096.0 1047 0 1013 0 4403 020 Loans LocalM(R0I.knpts-pasar.olhe.; 126.0 6621 Loans. IUIOP 600.0 1200.0 27C0.0 2100.0 2800 0 9300 022 Inpres(Genecul) 4938 606.7 2219.3 4448.4 1911.8 82P6 1130.0 2599.1 11939 1266.6 1341.4 14219 15072 67300 -1031

hnprs Ir ittlOP 1661.2 1654.9 1754.2 18659.4 1971.0 88J0 a

Olhe,shwadaya ._ _ __ 220.0 2610 342.0 577.0 611 0 2011 o

23 TOTAL DEVELOPMENT FUNDS 1436.0 1711.2 3070.11 6217.6 3058.7 2621.4 3027.7 4306.7 7667.6 906.9 12468.7 11802.6 12163.1 636S78 231SDEVELOPMENT EXPENDITURE

24 inpresExpetdWities(nn ImUIp) 493.8 606.7 2219.3 4448.4 19118 829.6 11300 25991 1193.9 1265.6 1341.4 14219 15072 67300 10325 Econovnwc 317.2 S18.7 402.7 390.026 Social 63.4 133.8 115.8 325.027 Gensral 492.4 421.3 230.8 175.0 1038.6 1534.9 2151.6 1404 5 1123 6 1191.0 1262.5 1338 2 141865 6333 8 028 krban29 iUIP . 5618.6 6919.5 968 6 89800 9262.6 40449 2

30 TOTAL DEVELOPMENT 1356.8 178056 k9811-4 5a38.4 2948.4 2364-5 3281.6 40036 7936.0 9376.0 12272.6 11740.1 12188-4 536130 249SBALANCE: 9BOUG g FORWARD 1-2 79.4 IC. I 112.5 -8.4 101 9 2588 4 9 308.0 396 16095 355 6 4101 3e0tALANCECARREDFORWARD 79.4 10.1 112.5 -84 1019 2588 49 3080 396 169.6 355.6 4181 3928 3928DEBT SERVICE COVERAGE RATIO 21.0 25.9 25.7 19.3 29.0 42.1 62.2 13.6 8.2 12.9 14.1 9.7 9.7 107 -67S__ic. -trr _a __e~ ,Y .. .brIihan,pi/VI ~I-IeuI.PeeShu(.. YreI? ,d yMEO e

INDONESIA ANNEX 9

atT17.AU-TRTAU TAVA *TDAN nW1?T RPNT PROJECT PLge 4 of 9

PALU-DONGGALAREGENCY

Loa ITEM IREPELI I I REPELITA IV 1 REPELUTA V IREPELITA VI TOTALH83104 8486 J5m6 887 87/0 eUt9 80tS0 90191 91192 02163 M0M4 94195 96108 01-4S ____SOURCE OF FUNDS-ROUTINE

CnPAGFOW IEFOO2 Tans 316.9 336.2 319.6 343.3 613.3 614.1 676.8 602.3 716.0 804.0 81.0 944.7 1049.0 £404.7 10.3 SeniveChrgne 300.8 3S.4 321.3 623.4 449.9 501.3 64908 1004.7 1102.0 1253.0 1386.0 1486.9 1623.1 0849.1 10.14 Ohnm. rnuqs".b ne 94.7 146.6 120.8 136.0 83.8 128.0 136.0 206.8 210.0 232.0 246.0 261.0 277.0 1236.0 a.5 UEDArSM 196.0 203.3 m.6 267.A 457.0 386.4 826.6 1409.8 1864.0 2034.0 2229.0 2630.0 2787.0 11434.0 14.* SDO 1607.6 1704.9 2218.3 2482.0 2730.2 2616.9 2965.8 2374.9 2681.1 2831.5 3106.2 3407.6 3738.0 18664.4 0.7 Shof lenn erka TOTAL ROUTINE FIVENUE 251. 2774.4 3202C6 3741.6 4234.2 4306.7 6062f9 6648.6 6472.1 7164.6 78W7 *.2 02 474.1 39687.1 10%beg RAuth. Eupendha,

10 Cagascg. Cah e*xcmae *Nd elan 1391.6 1662.0 1771.411 DCmn. PU 68.6 73.2 90.012 Das-dw,a As o89m 360.3 418.4 468.113 OUe 6164 664.2 661.2 ___1 TOTAL ROUTINE EXPENDITURI 2 2U07. 3179. 3400.0 3740.0 4213. 4662.6 4439.4 4870.1 6342z6 687 642.2 7062.P 296.4 FRUTINE SURPLUS 161A -3.4 22.0 341.6 494.2 29.1 600.3 126.1 1602. 1812.0 16 2190.9 2421.3 10031.7 1416 LocaIDmvu* boxms 242.6 334.1 179.6 6.1 66o 664.6 631.4 467.0 464.0 613.0 644. 677.0 612.0 2730.016 TOTAL be LOCAL *WAGMAX8 423.6 300.7 202.1 306.6 609.2 509 1031.7 1686.0 208.1 2326.0 2540.6 2776.0 3033.3 127e617 1kem Dom amih 32.5 70.6 70.0 70.0 62S 70.0 2.3 60.0 2B7.5 297.6 207.6 27.5 297.6 16660_COONfFWTRI to DEVElOPM 31"1 230.7 1326 =L. 506.7 8z. 1006.6 1181.0 178.6 2007. 225&0 2469.4 2746.6 11324.2 1c

OTHEROINOME16 C -- a 2032.3 1480.4 133. 701.1 1767.0 7834.619 * - 666.6 669.9 0263 "6Zs6 702.6 3137.0S.em, Lee _ .Om ee-P lIme 447.7

1 L . RNDP 6eo0.0 300.o 0 oo.o 200.0 eo.o 20oo.oO2 *me Pfa8me 7066A 10003.4 4761.3 6620.0 7020.6 6772 3734.3 9164.1 6324.0 8623.56 930 99i4.0 10606.9 40923.3 2.hree kwi MP

1019.0 1060.2 114L0 12137 1266.5 6744.3Omam10wemaalz _ 90.0 66.0 100.0 106.0 160.0 640.023 TOTAL DEVELOPME1T FUNDS 74U 1CiIo 6331.6 647.2 7527.3 720.6 4730.6 10326.1 14320.4 14406L6 18600A 1629L0 17600.7 776001 IIADEVELOPMENT EXNURE2t pr"e E pemdImwej 'wm M 7066U 10003.4 4761.3 6620.6 7020.6 6776 3734.3 9164.1 6324.0 82,3.6 066;L9 9914.0 10606.9 489M33 2.

so" bchS14.5 72.2 46.3Ike hn n 30.0 37.6 66.1 216.0 337.0 421.6 1202.0 1200.0 1336.6 1416.7 1600.7 2701.0 2010.0 10241.6 17.48Urbn 166J 196.7 694.0RONP

4377.7 3749.2 4429.4 3131.6 4700.6 20366A 2L8.TOTAL DEVELOPMENT 7271. 180311A 6446.7 676. 7367.6 7194.2 60163 10424.1 14037.3 13966.4 15283.6 16746.5 10010.6 7774.6 11

mOUWiff IFOPCWW 71.2 262.0 174.2 89.0 170.8 340.3 442.6 100.0 07.0 350.1 706.2 1296.2 6M4.6 67.0covom UWCECED 22. 174.2 69.0 170.6 340.3 442.0 10.0 67.0 380.1 70.2 1296.2 34.0 466 466.SERVICE COVER E RATO e -0.s 03 4.9 0.4 OA A 10. 24 66 63 7.7 0A~~~~~_ ____ -r

- _ _ r _ ~ _ ~ rr

INDONESIA

SUILAWESI-IRIAN JAYA URBAN DEVELOPMENT PROJECT ANNEX 9

PARr'D AM Page 5 of 9MUhICIPALITi

Llt sitE a7/8 Be.*S 8990 190/9l 1*192 12i93 13/Il I4,gs 16,li S7 1?W 9011 1. 20M

I raTes in 178 215 252 214 344 30 41S 434 4*0 e 5172 Servic* Charges 3S2 400 582 S23 1.116 1.15? 1.45, 1.630 3.12, 1.6f5 1.810 1.879 I,.S3 Dines. enterprises. *tc 43 7S 91 341 103 109 115 122 130 130 116 ISS 61S4 NO*s Shar* in wehicle tam 13 109 226 252 315 472 503 533 565 51S 635 673 713

S Fetal PDS S SP 161 63 .113 1.147 1.627 2.062 2.4S1 2.714 2. 91 2.61S 3.051 3,194 3.360_IIIE ElUlNDTUltS

6 C.mcil. Chief ewecutive and staff 1.020r Sitn. PU nS* fines-dine, All ethers 1.682I Other 143

* Tetal Awtine E_p -e ture 2.4W2 3.231 3.932 4.527 5.028 5.31 5.611 6.04 6.403 6.93 7.1ff 7.633 8.063ElaM 2.314 2.571 3.121 3.311 3.113 3.2 4.058 4.301 4.S51 4.833 5.123 5.430 5.S7S* Hot _stine Ependitrten (nt of S00) 516 446 611 1,136 1.41 I.S51 I1.64 17.45 1.04 1.410 2.012 2.202 2.327a Oet Seutiue Funds Av ailable for Debt Service

(liew S - lane 12) 6 16 302 530 11 531 620 16 1.042 905 191 12 3.05314 SERI CE 20 20 20 7 9 71 11 11 391 44 404 403 403 402is "t Asutine funds Available for Developnt

(Ian 13 - line 14) (A 76 292 459 332 4S2 741 512 30 S01 67S St09 650UEWELUMNT FUIIDI h

N Local Oe,l . Incom 11 0 0 0 0 0 0 0 0 0 0 0n Nt dew. income - local sorces (lanes 15 a 16) 11 10 262 41" 332 452 741 572 630 501 576 509 650W c-ance carried foruwd (line 36. previous y ear) 144 16 4* 66 60 0 0 0 11" 202 202 202 20131 rWO 1K I 0 30 s6 132 140 a4" IS 177 11? 3*1 119 211 22480 Provincial yants (Inpres OfI4 S1) 0 120 240 320 341 311 303 401 130 456 463 512 54321 Leans. .- IUIS3P 0 0 0 0 300 460 420 0 0 0 U 0 0E2 Las. UlIUp 0 0 0 0 653 4SS 0 0 0 0 0 0 03 Inpree (Genral- - educetin. health. tc.) S30 227 153 476 50? 530 S70 60" 14 6S79 7Z0 763 609

*4 Ipr*9 11K It 0 170 200 500 533 5ss 60o 645 6S? 133 761 032 661S Inpres Jaian 0 100 300 617 671 1.06 1.117 1.317 1. 44 1.593 1.753 I.12 2.121

36 fetal Funds Availabl* for Dee1lopment Ewpd. 76S 6113 1.30? 2.6S0 3.756 4.090 4.0or 3.712 4.220 4.352 4.?11 5.03? 5.435I? iEm.uP,Mu OE)U3St eES* Imps, Empedttwures (mc. IUIIP) s3 49 651 1.13 1.113 2.1W 2.3?2 2.566 2.M 3.005 3.253 3.523 3.0161 TI Ir- financed Enpenmtiss (ici. IUlIOP) 0 IS0 326 452 463 510 541 513 "W l14 683 724 71?se - com

s Social 145 62 I64 341 506 70S no s? 317 251 26 2m 32S

S3 Sham 33 IwSp "A 4 71 124 6o GM0 370 1o? 31? 251 26 28 5 325U fetal t e 1 Iep_nt E_peituwr 683 7SS 1.221 2.510 3.756 4.010 4.074 3.53 4.016 4.151 4.512 4.03S 5.234

J6 .UItUS (DEFICIT) (line 26 - lin 35) n1 47 66 s0 0 0 0 1" 202 202 202 201 201

DM COlfAIMME lUlGlW PfOSOP Alec.to Dew.Expd(lines 136 If -line 3) 145 109 243 465 412 452 41 314 634 502 SS6 s5 650M PNSSvM Allocated to IUZIP (line 3? m SOX) ,5 47 n 124 206 22S 30 Is? 313 251 26 21 32591 Mt PISPM Avail. for Debt Ser.(lin 134 1.5)3 20 20 20 7n ? 71 ? 56 60S 606 605 60 604U9 Debt Coverase tatie

ai.. St divided by Aine 14) 1.0 3.0 '.0 1.0 1.0 1.0 1.0 1.5 1.5 1.S 1.5 1.5 3.5

Maist lbsterical data Cup to fy IN1 r) were taken fren budgt realization report; forecasts by IUIOP rWTsk Farce and K II.* *Pl0icabl startin FV 139944 hwa.... o. .th re nr a.mw,...i

114T'ONP.SIAINT"ESIA ~~~~ANNEX 9

SULAYTESI-IRIAN JAVA URBAN DEVELOPMENT PROJECT Page 6 of 9

GORONTALOMUNICIPALITY

LIN ITEB IREPE ITA III I REPELITA IV 1 REPELUrA V _ REPELITA VI ToTA.L ______________________________ 30134 8413 sune am?6 aiiaa owns am 9013 90!12 OM am g KM 6 9696 14S wl

)UWRCE OF FUNOS-PROUTINE r t ~-'. ;2 Tax.. 064 109.3 132.7 106.2 199.3 230.2 279.1 261.9 h 1976.1 12.63 Ssbo CherCg 142.2 211.7 276.3 402.1 4064 494.3 62.4 6S3.8 641. M29 1020.3 1061.6 1146.4 4062.8 14.54 fnas. enlprulm. goo 91.2 '97.6 106.6 17.6 8.2 67.3 42.6 64.4 67.7 61.1 648 68.7 72.6 325.1 6.S FE0iP4SU 46.1 66.1 62.1 60.3 113.3 119.6 161.4 224.$ 360.3 402.0 442.6 483.8 610.8 2190.3 17.Ua SW 724.1 673.6 1170.0 1236.0 1189.6 1342.6 1612.6 1741.0 1840.6 2015.7 2207.2 2416.9 264.6. 11127.1 .7 Shal"> n Om .mn .e TOTAL ROUTINE REVENUE 10".9 1347.1 1742.6 l"18. 1916.6 2253.7 2e48.3 2666.8 3176. 360.3 4160.0 4501.7 4654.7 20301.3 11.1%

ha Rou,n E%wmdha10 C;o_s Chhl .mj*x Wmd lN 67a.5 8a58.0 10903.4* 1 Oh_. PU 44.2 42.0 48.412 Ohn-dtnm AN ol 272.2 264. 3090 113 oo. 74.2 72.3 142.2 _

U TOTAL ROUTINE EXPENDITU 1069.1 127.2 1693.1 160.o0 1769.0 1961.2 2320.9 2467.9 2111.4 2547.0 3227.0 3533.0 360. 16263 9.ROUTINE SURPLUS 30.6 109.9 14s.6 191.2 127.8 302.6 267.4 407.9 4862 661.3 9030 9662 s0654 4033.1 I19.

16 Loeal Dwvgioom. 231.6 241.7 160.9 76.3 70.6 32.0 38.9 31.0 32.9 34.8 36.9 391 415 165.2 60 16 TOTALbm LOCAL LE9OtNWS 2e2.0 361.6 20A.4 286.4 198.6 334.6 290.3 436.9 616.1 . 6061 9s9 1007.3 1026.9 4216.3 Il6.

ism Dhb4Uvio_ 0.0 0.0 16.0 .0 1.0 12.6 20.0 339 33.9 31.1 19.6 16.6 11.3 112.6 -19.NTRUTInON toDEVELOPME 28z 361.6 2064 261.4 163.6 3ZC1 2763 406,1 464.2 6661 690.3 090.? 1016.6 4106.8 26.

OTHER 40OMEtS O - gm 263 13Ow.l 920.9 1142.9 609.7 6407.9 0.020- PLowOwid - UM p w 2039.4 342.5 624.2 361-a 311.6 3880.0 0.0o

21 Lo_. llDP ,160.0 76.0 300.0 226.0 260.0 1000.0 0.22 Sarl(Oso 601.2 e66.6 729.2 1066.3 508.2 sa6.3 772.9 193.3 1032.4 1126.1 1193.7 1266.3 1341.2 6068.7 S.

hpm. W .UDP 991.2 1060.7 1113.7 1180.6 1261.4 6687.6_ o. qJwa 3 '220.0 230.2 247.2 262.0 277.7 1240.2 0.0

23 TOTAL DEVELOPMUNT FUN 663.0 1017.2 94.6 3006.6 691.7 1207.4 1040.2 2542.4 7602.4 4801.9 6660.0 6425.3 6017.4 23030.1 16.HDEVELOPMENT EPEDITURF24 . EpenduEI*W WM 601.2 08. 729.2 1066.3 60.2 686.3 772.9 1937.3 1002.4 16.1 1193.7 1266.3 1341.2 6986.7 -7I.1F2 n Eee_ 72.2 6&1 40.3Sucil 13.3 56.9 46.6

27 i11 167.9 102.4 116.4 210.0 218.6 471.0 260.6 301.4 319.6 336.7 360.0 380.6 403.4 '601 0 601

29 MIJIOP ____________________________________.____________ 6173.7 3310.0 3830.7 3616.1 S117.6 20053.1 0.0TOTAL DEVELOMENT 84 938.0 9064 13063 72L. 13663 1023.7 2.3 76661 4774.6 664 6280.9 462.2 27842.9 16.81

MAAMCEUaUt 4TFOBj 35.0 64.3 133.6 191.7 193.1 167.0 0.0 34.6 136.2 680 112.1 276.6 440.1 138.2 00.4NANlCECA F IW , 64.3 133.6 191.7 193.1 167.9 9.0 34.6 130.2 &.0 112.1 276.8 440.1 606.4 696.4 33.

D BnCSERV E COVERAGE RATI 0.0 O0 10.0 12.7 8.6 24.2 12.9 12.0 14. 21.3 47.6 6I.L 67.1 Z.S 48.6_ . _S a #!_r ~- -___, 0,-_ li_ _

INT)ONESIAANNEX 9

SITLAWJESI-TRIAN JAVA URBAN PFVFLOPMFNT PROJECT Page 7 of 9

PALOPO - LUWU

REGENCY.~~~~~~~~~~~~~~~~~~~~ -- . EPEL _

LINE ITEM IREPELITA III I REPELITA IV I REPELITA V |EPELITA VI TOTAL63134 s41S6 S" semy e Se7 a set.9 eos9 90ltl 9112 92103 931s4 0416 im 914_

SOURCE OF FUNDS-ROUTINE PROJECTION PEJOD2 laxes 120.@ 140.0 143.2 94.6 216.3 133.0 129.0 226.4 258.0 310 5 340 3966.0 42. 15.6 33 Service Charges . 1J 1 111.10 636 1 682.8 644.6 703.2 8270 123e.3 1414.0 153S 1 1678.0 1606.0 1907.0 1401.1 0.4 Om", ntetpnes.elc 134.1 11.8 60.7 76.4 123.1 3446 1426 372.9 396.0 4190 444.0 471.0 490.0 2221.0 6.S PEODAIPOB 100.0 230.8 367.2 2ZJ.9 266.9 220.4 632.9 762. I 1100 12060 1407.0 1511.0 1619.0 6161.0 16.

6 SW0 4046.5 763 7214.0 6246.6 S782.2 9460.6 11306.7 12864.4 14617.7 162606 18211.0 20316.3 22643. 02226.6 17 Short Wm loansa TOTAL ROUTINE REVENUE 4861.4 166.7 0341.2 9241.2 9604.1 10661.8 13038.2 16462.0 17720.7 19731.3 22064.0 24670.3 27367.8 111464.1 12.1

lae Routne Expondture10 Council. Chief axeculvs and staaff 117.6 736.4 1666.2 2064.8 2176.81 1 ines. PU 6es. 16.0 81.9 666 96012 O.aS-dinas All others 3173.3 619.3 58762 6347 6 7231 213 Olher 392.3 90.6 426 4 421.9 464.6

14 TOTAL ROUTINE EXPENDITURE 4803.0 1400.6 8061.7 6912.9 0061e8 10666.3 13127.4 16249.7 17079.6 19129.2 21424.7 23696.6 26675. IOS604.2 12.0

ROUTINE SURPLUS U.4 1UL2 2610.5 1. -44. 5 -101.2 202.6 041.1 602.2 m.a 574.7 462.7 211WI0 ISI15 LocalDevel. Income 66.3 110.1 707.4 122.1 674.9 323.6 1260.9 1766.1 731.6 776.4 622.0 671.3 0236 4123.5 -12.316 TOTAL rotm LOCAL IE9ORCES 717.7 6.3 0s6.9 460.4 620.3 297.0 1171.7 1067.4 1372.6 13776 1481.3 14459 14063 70837 -67

lefs Debi Service 0.0 10.0 361.9 82.2 36.0 7.2 171.7 64 . 40.0 63.6 40.0 221.0 2210 0.6 21.

NTRIBUTON to DEVELOPM"-X 717.7 3163 616.0 366.3 7663 260.8 1000.1 1002.9 1332.6 1294.0 1441.3 12Z4.9 1e16.3 6476.1

OTHER INCOME1e C.nVal-gant 794.3 6I.7 821.6 772.6 6424 3612719 Povincda - grena 161.7 164.2 200.0 196.3 22.6 9s66720 Loans. Local (RI. Inpres-paa. o, et) 630.0 977.1 200.021 Loas. IOP 160.0 171.0 200.0 226.0 260.0 1000.022 Inpr (Qeneal 4264.2 3007.7 4330.6 36e.0 2462.0 2966.1 3734.3 4776.1 4640.0 4919.0 .6214.2 6627.0 581.7 2P;50.6 4

kw"m br MOP 424.1 449.6 476.6 606.2 636. 230.9Onhwtdai 60.0 00.0 100.0 110.0 120.0 600.0

23 TOTAL DEVELOPMENT FUNDS 6011., 4221.0 4946.6 6004.4 3447.3 3244.9 4734.4 61.0 7603.3 773.6 64836 862 6004.4 41287.0 ILDEVELOPMENT EXPENDITURE

24 lnp5 Esxpendwtuesinon RAM 4264 2 3907.7 4330.6 3660 0 24C2.0 2965.1 3734.3 4778.1 4640 6 4919 0 6214.2 6527.0 S8SO 7 26169.5 4.26 Economic 6.7 62.0 119.1 116.6 110.726 SOCia 41.6 66.1 81.1 124.9 62.027 tGal 1073.1 20.1 272.1 1140.3 643.0 372.8 70 1970.0 678.1 930.8 9.S 104.6 I106.6 4940.8 -10.

26 Urban29 MOP _ 1616.7 1641.6 1009.1 1062.7 2126.4 9667.2 0.030 TOTAL DEVELOPMENT 137'.6 4230.9 4602s A062.0 3607.6 3327.6 4616.3 6746.1 7336.4 7491.4 6200. 6666.6 90060 4067.6 6.10

BALANC UROUGHT FO OA1U) 33.9 461.3 463.4 S5. 1 648 5 - 961 153 231.4 164 3 4323 614I3 6672 674. 16643LML4CECAFEDFORWAR 481.3 463.4 6.1 648.6 9861 153 231.4 164.3 4323 614.3 667.2 874.8 78s6 7s5.6DEBT SERVICE COVERAGE RATIO 0.0 0.0 0.8 4.0 -1.6 -3.7 -0.6 2.4 16.0 7.2 le6. 2.6 2.2 4.89

bwce H~rcHw Dom lgme. FI job fre ei.* im_A r4pri hrinb Oak by _P Teem

INMDNESIA

SULAWESI-IRIAN JAYA URBAN DEVE.LOPMENT PROJECT ANNEX 9Page 8 of 9

V'tIjART PFrvCrV

LZF ITEM LEPELITA 1117|REPELITA IV REPELITA V IREPELITA VI ho'Ad83164 84185 85t86 6t87 87186 88189 89190 90191 9_192 92193 90t94 94195 95796 1-98 towt

SOURCE OF FUNDS-ROUTINE PJECTION PEaOO2 Taes 995 1076 IlS8 943 131.7 :S87 1574 113.7 210.0 239.0 2S8.0 2720 2880 1267.0 lC.63 SivinceChages 1908 3374 3472 3369 3114 3672 4940 5030 6180 720.0 786.0 8320 8820 30360 Iv.4 D.n*5.eene.pr.ses.cIC 2234 274 1 1562 1273 1173 2290 1426 1826 1940 2060 2180 2310 2450 10Y4.0 6.1S IPEDAIPB 662 68.2 892 855 2290 2445 6329 7010 8230 938.0 9950 10850 1188.0 5029.0 I1l16 SOO 41820 47680 73516 81282 8755.1 9S342 115591 137697 iSid?2 16655.3 18320.9 201530 22168.3 02437 10.0I Shotl wim loas nI8 TOTAL ROUTINE REVENUE 4761-9 55.9 80o60 8772.2 9544.5 10833.5 12985.9 15329 9 16986.2 18158.3 20577.9 22s73.0 24771.3 1031.1 10.1

Itss Routene Expenditure10 Council. Chwft executve and staff 1371 5 1470 7 1916 9 2029.6 2160 711 Dmas.PU 74 5 70.6 901 929 97.712 Dinas-dnas Al others 3208.7 3664 5 5907.9 6528.7 7072 313 Other 36 9 54 9 88.8 49 1 833 314 TOTAL ROUTINE EXPENDITUR 4891 6 5260 8003.6 8700.3 9414.0 10814 5 12918.3 15294.2 16823.6 18505.9 20365f. 22302.2 24831.4 27094.5 10.01

ROUTINESURPLUS 703 295.1 S6t4 71.9 1305 19.1 67-6 35.7 102.6 252.4 221.3 110.8 13099 957.0 314IS local Devel Income 13 1394 2336 1220 131.8 1164 196.3 240.2 254.6 209.9 286.1 3032 3214 14353 60#118 TOTAL from tOCAL ffSOUFCIES 84 I 434 5 290 0 193 9 262 3 135 4 265.9 275.9 417 3 522.3 507 4 484 0 481 3 2392 3 10 80Iss Debt Serfce 283 111 7 8.0 4.5 33 7.2 10.3 81.3 81.3 11.0 91.0 910 910 4m30 231ONTRIBUTIONIoDEVELOPMENT 55.6 322.8 2840 189.4 250.0 126.2 256.6 194.7 336.0 4405 4164 3930 3703 19b63

OTHER INCOME18 Cenral - gfants 426 2 1075 3 64 6 1i6 9 9r6 4 4331 19 Cncial -grants 124 8 272 226 2 300 1 200 120S 320 Loans. Local (PDAN Inpres-pasr. 0oth.,) 4611 38 921 Loans. kttOP 00 00 00 00 00 0.022 tnpres (General) 7065.6 10003 4 4751 3 6520.6 7020.6 6772 6 3734 3 477A 1 4676 1 4574 3 4848 7 5139 6 5448 0 24686.8 2 7%

Inpres for HIOP 388 6 794-4 842.0 892 6 946-1 383.7Oth.rsswadaya .0 60.0 70 0 800 90 0 350 0

23 TOTAL DEVELOPMENT FUNDS 7582.5 10366 1 5035.3 6710.0 72798 690008 39699 4972.8 6001.7 7216.6 70880 1974.2 6113.2 3m0.7 10.31DEVELOPMENT EXPENDITURE .Inpres Expondilurs(non SlOP) 7065.6 10003.4 4751.3 6520 6 7020.6 6772 6 3734 3 4778.1 4676 1 4574.3 4848.7 6139 6 54.480 24686 8 278Economnc 4 4 294 1.3 S

2 Social 4 0 14 3 22 03 General 5350 3698 281 5 1400 220.0 113 1 2160 2060 2700 2862 303.4 3216S 340.9 S122.0 104%4 Urbarn5 SlOP. 1040 0 2267 9 1U85.3 2500.5 2350.4 10044.1 0.016 TOTAL DEVELOPMENT 70m.6 10373.2 5041 2 6704.3 7283.9 6885.7 4010.3 4986.1 59861 t 712S.4 7037.4 7961.? 8130.3 :_5Z9 10.__ __ __ _ _ . . . . ___ ...... . . . __ - _ MiAh, UAROUWT FOfWIm 339 1S 6 7.7 I8 7.5 232 38.3 17 9 4 6 202 106.5 *59.1 1716 4.6 71BALANCECAIVEDFOfMDU 1518 7. 18 75 23.2 383 17.9 46 202 108.S 1591 1716 14S.4 144 99S

DEBT SERVICE COVERAGE RATIO 2.6 2.6 9.4 16.0 3.3 ZsO 6.6 0.4 20 3. 2.4 2*0 1 1. 2084_ _*__t_S_f_.__ _w___ _

m bf ulN PFl * . g tIome 8 LUPYm

INDONESIA ANNEX 9

SULAWESI-IRIAN JAYA URBAN DEVELOPMENT PROJECT Page 9 of 9BONE

MUNICIPALITY

LINE ITEM IREPELITAIII IREPELITAIIV IlREPELTAV lREPELIT831U4 84s86 861 8a7 ails. aas sOo w90 92103 9219 041 * 19 9s-96 (SOURCE OF FUNDS-ROUTINE -2 ae. 170.7 188.9 292.9 108 7 160.3 188.4 244.9 266.1 A ".2 3 401. 4324 *s73SrvlC Charges 286.9 382., 462.6 432.7 473.8 074.3 1161.3 1260.0 1474.7 1610.1 176.6 1919.0 2161 7 6921 1144 as. nterpries,. etc 141.4 238.0 1830 449.1 3630 368.4 333.9 676.4 011.0 648.0 "7.0 726.0 771 0 3443.0 8.S DPoS 3709 4*4.7 603.6 668o0 696.6 86 I 1120.3 1000.0 1260.0 1326.0 406.0 1480 1788 0 r2.0 12.a 4630.5 6700.6 81643 7896.0 8869 2 10398.4 12421.1 i374S.6 16204.0 16724.4 18306.9 20236.6 22200.2 92622.1 10.7 Short term loans

s TOTALROUTINE REVENUE 6799.4 0904.S 906.6 043.4 106P2.9 12086.6 16271.6 1687l. I 174.7 20663.7 22612.1 24770.4 27413.3 114324.2 00.21Routie Expenditure10 fIcit. Chief execuive and staf 10060 1239.7 1117.011 Dlnaa.PU 64.9 69.8 77.212 D -dinas ANothers 41360 4766.7 6910.013 ' 196.8 196.0 410.014 TOTALROUTINE EXPENDITUR 6404.7 292.2 9214.2 9183.1 10100.8 1180.2 14318.8 16201.0 187.1 1976.8 21634 23807.7 2a18.6 101D2.6 10.ROUTINE SURPLUS 394-7 702.0 482.4 360.3 472.1 619.3 962.6 010.1 907.6 977. M6.7 062 1224.8 6121.7 16.16 Dave# ncunw 4 2

0.016 hOaLIaomLOCAL 8.SOURCWES 396 9 702.6 482.4 360.3 472,1 819.3 962.6 610.1 967.6 977.9 966.7 962.7 12246 6121.7 16.017 ee Debi Se9rvIo 0 0 0.0 0.0 0.0 20.0 90.0 90.0 90.0 90.0 90.0 90.0 40.0 40.0 400.0 -16. F-CTRIBIIONUtoDEVELOPUENI 391.9 702.6 482.4 360.3 462.1 729.3 86r.6 80.1 807.6 187.0 878.7 9Q.7 11848. 4771.7 17.9 THER INCOIAE

IS C al -grant. 014.9 1071.6 1302.0 1048.6 823.9 5121.6to Ptetal-grants 11.6 9.6 103.0 367.0 123.0 230.0 264 0 1147.020 Loan. ocal IF.L weoe-pasa. Omher)

21 Lou iuuJP 200.0 760.0 600.0 100.0 0.0 1650 022 pC leneal) 780.7 3631.8 1386.7 3663.4 2497.2 3663.4 2746.2 6623.7 6297.8 6016.0 6962.0 6309.7 6666.3 298640 3.1p kw kx sJuP 0.0 0 0 0.0 167.4 690.8 626.2 603. 703-7 3141.9Chh luWadays

0.0 0.0 0.0 32.0 33.0 36.0 39.0 41.0 181.023 OTALDEVELOPMENT FUNDS 111U.0 4234.4 1819.1 4036.6 2949.3 4402.3 3007.8 004J. 7S60 9018. 678110 93136 *706.7 46877.0 9.9EVELOPMENT EXPENDITURE24 knrExpendhwaenon SIJROP 788.7 3631.6 1313.3 3603.4 2497.2 3663.4 2745.2 6623.7 6297.8 6016.6 6962.6 6309.7 66s 3 29604.0 3 9%26 Economic 26.8 77.9 126.426 SocIa 46.1 66.3 61.627 General 371.3 264.0 304.1 605.0 376.2 694.8 816.1 617.8 679.0 747.0 801.0 610.0 620.0 3868t2 6.826 Urban29 RUJ)P

1901.9 2946.6 2679.6 22198 2010.3 11957 130 OTAL DEVELOPMENT 1229.9 3929.0 1606.4 4268.4 2673.4 436 2 3681.3 6141.6 7679.3 9308.7 9633.2 0.6 96104 46679.3 9

3EROUGNTFORU1ARD 110.i 66.6 3714 376.1 142.2 218.1 262.2 308.7 211.0 294.4 301.6 247.4 221.6 2110 -64CAAIED FOVAH 66.6 371.4 376.1 142 2 218 6 262 2 308.7 211.0 294.4 301.6 247.4 2216 408 7 408.7 14 1STSERVICECOEAATIO 0.0 0.0 0.0 0.0 23.6 9A 10.8 6.8 11.0 10.9 10.8 24 1 30.61 128 35 spuail "lftx A" affwofy taAmpIAMbuw taktnnrepd "64woaua by luoTeam,

- 136 -

Annex 10Page 1 of 38

INDONESIA

SULMWESI-IRIAN JATA URBAN DEVELOPMENT PROJECT

ENVIRONMENTAL ASSESSMENT PART I: SULAWESI1.0 INTRODUCTION

This Environmental Assessment of the Sulawesi component of SIJUDPwas carried out by the environmental specialist attached to theproject appraisal mission completed in October 1990. Theassessment has considered each of the nine cities in the projectand has concentrated on those sub-projects which raised significantenvironmental issues.

In general terms, the environmental impacts of the project arepositive as all of the proposals involve a significant upgrading inthe physical infrastructure of the existing urban environment andin some cases also involve significant upgrading and rehabilitationof the municipal water supply. Due to the small size of many ofthe cities (excluding Ujung Padang and Manado) the existingenvironment of the downtown areas is characterized by reasonablelevels of amenity and do not experience the same level of existingenvironmental problems which are readily apparent in the biggercities of Ujung Pandang and Manado or those in the provinces ofJava.

After a brief description of the generic environmental problemsencountered during appraisal the larger cities (i.e. Ujung Pandang,Manado, Palu and Kendari) are assessed using IB.R.D. OD 4 (Oct,1989) Palopo was assessed in more detail due to a potentialenvironmental concerning conflicts over water resources. Pare Parewas not addressed in detail due to the minor nature of the newproject proposals. The smaller cities have been grouped togetheras similar issues reoccur.

2.0 GENERIC ISSUES

It can be seen in the Figure 1, there are considerable differencesin the population of many of the cities. For example, compareUjung Pandang with a population of 750,000 and high growth rate tothat of Gorontalo, a small provincial city and a stable rate ofgrowth. The existing environment of these cities reflect thesepopulation differences. Consequently, the priority of theenvironment assessment and field inspection was to concentrate onthe larger cities where the need for an inteorated approach tourban development is most apparent. A brief inspection was carriedout in the small cities of Bitung and Gorontalo where asignificantly higher level of service in urban infrastructure wasobserved.

In general terms the most common environmental problem in all ofthe cities was the need for change in the management practices

- 137 -

Annex 10Page 2 of 38

presently utilized in the solid waste sector. This issue isclosely related to the second most common existing environmentalproblem - the maintenance of existing Municipal drainage systems.A substantial part of the latter problem is due to the presentpractice of placing solid waste into the drainage system.

Annex 10Page 3 of 38

SULAWESI - Fig 11990 Population Estimate (thousands)

800 - --

600

400

200

U.P. Manado Palu Pare PareKendari Palopo Gorontalo Bitung Bone

City

_ Series 1

- 139 -

Annox 10Page 4 of 38

Therefore, addressing the problems associated with solid wastecollection will have a substantial impact on those in the drainagesector.

Also in the drainage subsector, there is a continuing problem in anumber of cities caused by increases in the sediment load, whichare a result of poor land management practices in the rural-urbanfringe. This problem requires a regional planning approach andincreasing coordination between provincial and local governmentsresponsible for management of land and water resources.

There are also a number of site-specific issues which have beenaddressed in the assessment of each of the individual cities. Eachof these cities is now discussed using the format established forassessment by the IBRD Operational Directive concerningEnvironmental Appraisal O.D. 4 October 1989.

3.0 KANADO

3.1 Project Description

Drainage

* Major cleaning operation of the drains especially the closedones in the central business district. This is proposed inthe first year.

* Proposals for study and improvement by Pengairan Tk I for themain rivers also to be implemented in year one and followingyears. Pengairan Tk I estimates the implementation of worksfor river improvement in Manado town as Rp. 1.7 billion.

* Improvement of main and secondary drains will be an ongoingactivity throughout all project years. This includes culverts(box and pipe) as well.

* New drains mainly tertiary type drains will be built assuggested by local officials to improve storm water dischargein adjacent areas.

Roads

Rehabilitation of 60% of local roads and coordinated investmentsfor future development of an outer ring road. This subproject isnot subject to IBRD environmental requirements as there is onlyminor involvement in the subproject.

Solid Waste

The proposal is to design and construct a new T.P.A. (sanitary landfill) and provide adequate 0 & M funding over the life of the loan.The loan provides for the purchase of new equipment includingTrucks, Gerobaks and workshop tools.

- 140 -

Annex 10Page 5 of 38

Sanitation

a. The provision of clean-out services for septic tanks and thepromotion of septic tank construction through awareness andpromotion campaigns.

b. Construction of a sewerage pilot scheme and promotionalcampaigns.

Water Supply - physical improvement projects include:

a. Extensive rehabilitation of water treatment works andinstallations.

b. Development of a new groundwater source at Pinaleng, a newproduction well at Paniki, and a 2000 m reservoir at PaalDua.

3.2 Baseline conditions

Kotamadya Manado lies on the coast at the North Eastern part of theProvince of North Sulawesi (Sulawesi Utara). The urban area ofManado lays on the Eastern shore of Manado Bay. To the North is ahilly coastal plain; East and South are hills and mountainous areasseparated by two main valleys, South East of the urban area: Manado- Tondano river valley and Tikala - Sawanga river valley. Theisland group of Manado Tua, Bunaken and Siladen North East of theurban area form part of the Kotamadya.

Manado the capital city of the Province of North Sulawesi, is thelargest city of the province. It is the main commercial andgovernment centre. The kotamadya consists of 67 kelurahans dividedover five kecamatan. In 1995 the total Kotamadya population isforecasted to be 308,555 inhabitants of which 153,039 inhabitantswill live in the urban area.

The terrain of the Manado urban area is generally hilly; land issloping towards the sea and the main rivers. Slopes are reachingin many kelurahan 40 percent and the maximum elevation in the cityis about 120 m. The city is drained by the main regional rivers;the Manado Tondano River and the Tikala - Sawanga River, and byseveral local rivers.

A constraint on future development of Mtanado is the hillytopography, particularly the land to the East and South. Futuredevelopment will therefore be mainly towards the lowlands in theNorth, towards the North East influenced by the access to theairport and the Bitung Seaport and towards the lowlands in theSouth. These growth trends have been recognized by thegovernment, leading to the decision in 1989 to enlarge the

- 141 -

Annex 10Page 6 of 38

administrative area of Manado in order to improve control undevelopment.

A master plan for the former administrative area was prepared in1984/85, a zoning plan in 1986. A master plan for the extendedadministrative area is under preparation in 1990. Bappeda Tk I andTeam Teknis working on the Urban Infrastructure Inl%stmentProgramme and the Master Plan exchanged data ^ thesynchronization of both proposals.

The largest proportion of land in the urban area is residential.The original harbour at the main river mounth is now suitable forsmall fishing craft only; the bulk of commercial shipping isrelocated to the harbour of Bitung. An important commercial areais located in the centre of town South of the old harbour. Atpresent commercial development extends towards the North East alongthe road leading to the Airport in the North East and BitungSeaport. The remainder of the administrative area is presentlycovered with agricultural estates and some low density housing.

The master plan strategy is to continue the expansion of Manado asthe centre for regional development. This *ncludes improving itsfunctions as the centre of government, commerce, education, cultureand tourism activities to serve North Sulawesi. The land useprojected for 2005 as compared to the land use in 1983 is presentedbelow. The large portion of open land reflects an alreadyanticipated expansion of the administrative area. The actualexpansion of 1988 was 25% larger. Existing industry is based onagricultural - local timber processing and a growir' tourismindustry.

Land Use Area (ha)Land Use 1983 2005

Housing 1,404 2,726Commercial/trading 39 75Governments 74 164Industries/Warehouses 20 304Social Facilities 165 305Sport Recreation 15 47Roads/Terminals 252 257Open Spaces 700 8,992

Total 2,369 12,870

Source: Master Plan for Manado, 1984

3.3 Environmental Impacts

- 142 -

Annex 10Page 7 of 38

Drainage

The most significant environmental impacts identified have been thepotential for the uncontrolled use of drainage spoil from thecleaning and rehabilitation of drains and the potential fordisplacement of resident(s) (probably of non-legal status)alongside major drains.

In Manado, the potential for toxic or hazardous waste is consideredto be low due to the nature of industry in the town, (i.e. mainlyagricultural processing). However, the common practice of usingdrains for the placement of solid waste constitutes a potential forthe build-up of pathogens within the layers of mixed sediment andsolid waste.

As in the larger population centers in the cities of Java and inUjung Pandang there is an observed tendency for non-legal residents(squatters) to set up temporary housing on the area reserved foraccess to major drains. For rehabilitation and cleaning of drainsit will be necessary to clear squatter housing. The extent towhich this will be necessary is minor but will constitute a socialimpact of the proposal.

Roads

There is no significant impact anticipated.

Solid Waste

The existing disposal site in Manado is presently operating on anuncontrolled basis. This site is operating at the base of a steepvalley which is drained by a small creek. Run off and leachate ispresently flowing to this stream which is being used downstream forfish ponds and bathing by local village people.

The potential for surface water pollution is high and the potentialfor affecting the health of the downstream villages is alsoconsidered a serious problem.

Water Supply

As the majority of the works to be carried out are extensiverehabilitAtion of the system only positive environmental impactsare anticipated. However, the need for a new production well atPaniki has been identified due to pollution of the existingborehole. It is also indicated that the river water near thissource is also polluted. Sources of contamination of this supplyshould be identified and mitigating measures implemented. There isalso some potential for localized impacts (mainly soil erosion due

- 143 -Annex 10

Page 8 of 38

to vegetation removal) for the access road to the new 2000 m3

reservoir at Paal Dua.

3.4 Alternatives

Drainace

There are no feasible alternatives.

Solid Waste

Part of the first year program will include an analysis of threepossible sites for the new land fill area. No other approach tosolid waste disposal is considered feasible.

Sanitation

Apart from improving the disposal of sludges from septic tankq,there is also a feasibility study to investigate a pilot seweragescheme is included in the project.

Water SuDply

A feasible alternative to the existing PDAM system would be on-sitecollection using household tanks. Costs and benefits of thisapproach have been evaluated as part of the program.

3.5 Mitigation Plan

Drainage

The responsible GOI agency (Cipta Karya) carried out a preliminaryenvironmental assessment report (P.I.L.) in order to identify thepoter'ial for uncontrolled use of contaminated spoil andinvoluntary resettlement. Based on the report, there is no needfor resettlement.

Solid Waste & Sanitation

Satisfactory site selection and management planning for now land-fill and sludge facility would be made part of the projectimp13mentation agreement. Satisfactory performance would bemeasured by indicators set out as attachment to the agreement.

To check compliance an environmental review will be carried outannually as part of project supervision.

Sanitation

- Provision of suitable facility to deal with anticipated B.O.D.loadings as discussed in the paper on "the disposal of SepticTank Sludge" prepared by GOI consultant.

- 144 -

Annex 10Page 9 of 38

Provision of satisfactory completion of monitoring reports tobe set out in Monitoring Plan (RKL) & Management Plan (RPL)required under Indonesian Environmental Regulations.Compliance with the plan should be checked during projectsupervision.

Water SupplY

- Provision of satisfactory RKL and RPL to demonstrate that sitespecific aspects of construction of access road to newreservoir and water quality monitoring of new production wellat Paniki. Compliance with '.he plans would be checked duringproject supervision.

4.0 PALU

4.1 Project Description

Drainage

After analyzing the existing conditions and problems and settingpriorities and financial capabilities, the following programmes areproposed for the drainage sector for the coming five year of1991/92 - 1995/96.

- the dredging/cleaning, lining and rehabilitation (for partswhich are damaged) of the primary drains (I) at KelurahanBaru.

- the dredging/cleaning and lining of secondary drains (II) atKelurahan Baru.

- the demolition/replacement of pipes in J1. Iman Bonjol.

- the construction of new secondary drains in Kelurahan Lerei,Kelurahan Kamonji and Kelurahan Bayaoge.

- the construction of new tertiary drains and culverts inplaces which are considered necessary.

- the rehabilitation of damaged tertiary drains.

Urban Roads

The urban road system is in relatively good condition compared toboth U.J. ai.d Manado. There are no major investment proposals foreither arterial or collector roads. There are some new roadsproposed but these are local roads. However, the amount ofinvestment listed for new roads constitutes almost 70% ofexpenditure and 50% of the proposed 0 & M budget.

- 145 -

Annex 10Page 10 of 38

Solid Waste

The main proposal relates to rationalisation of the existingdisposal area which is an uncontrolled landfill of over 23 ha.Waste is presently dumped alaong the network of roads which criss-cross the site.

There are also small equipment purchases planned.

Sanitation

Purchase of a vacuum truck for septic tank pump out and theimplementation of a credit self-help scheme for installation ofseptic tanks combines with soak pits. Also included would be theacquisition of 3000m of land for disposal of sludge from septictanks.

4.2 Baseline Conditions

Palu at present still has the status of a Kota Administratif orKotip, under the Kabupaten Donggala as from 1978. At the same timeit functions as the capital seat of the government of level I,Province of Central Sulawesi and Kabupaten Donggala. A conversionto full Kotamadya status is not yet planned. Many of the futureKotamadya tasks are being implemented by an active Kotip Palu.Most of the municipal services are still under the responsibilityof Kabupaten Donggala.

Kotip Palu is located at the western central part of the provinceof Central Sulawesi (Sulawesi Tengah). The urban area of Paluborders the coast of the Donggala bay; to the east is the centralmountain range of the Central Sulawesi area. The town is stillpart of the vast ri±onal Local government of Kabupaten Donggala.

Palu is the largest town in the province of Central Sulawesi. Itsport (located outside the urban area) is the principal port for theWest part of the province. The Kotip consists of two Kecamatans,Palu Barat and Timur and covers 10,238 ha total of which 1,431 haurban. In 1995 the total Kotip population is expected to be194,000 inhabitants of which 127,000 inhabitants will live in theurbanized areas.

The terrain of the Palu urban area is generally hilly. The terrainslopes toward the bay and Palu river which crosses the town to thenorth and ends in the bay. Slopes in the inner urbanized area varybetween 2 and 8 percent, while those in the outer urbanized areavary between 2 and 15 percent. The highest elevation in theurbanized area is about 80 meter above mean sea level. The town isdrained by two rivers and their contributories, Palu river andPondo river.

The largest proportion of land in the urban area is residential.The remainder of the administrative area consists of agricultural

- 146 -Annex 10

Page 11 of 38

lands, estates and partly deforested mountainous land. Little orno industrial development takes place. The administrative functionof the town is its main income source (civil service and military,53%).

A town master plan was developed in 1978 and in 1986 a furtherdevelopment of a zoning plan took place by PUOD/Ministry of HomeAffairs.

The projected land use 2004 for the administrative area as comparedto 1983 is shown below:

Area haLand Use type 1983 2004

Housing 1,520 5,432Commercial/trading 112 253Governments 304 324Industry/Warehouses 122 760Social Facilities 375 436Agriculture/Estate 6,904 2,038Others 801 902

Totals 10,138 10,138

Source: Palu master plan, 1978Drainage outline plan, 1984

Development is taking place in the direction of Kelurahan TondoNorth East, where a new university complex has been established andhousing estates by government and others are developed. However,these are still located separate from the town on the west side oftown and act as constraint on development. South East the airportis present and restrains housing development in that direction.

The urban master plan emphasizes the development of the commercialarea in the town center and the housing areas towards the north-east. The land use control agency Suku Dinas Tata Kota is incontrol and recommendations from the master plan are generallyfollowed.

In fill development rather than expansion has been preferred inorder to make more efficient use of available infrastructure.

Projected growth rates of the Kotip Palu appear unrealistic sincethe growth rate for the period 1971 - 1980 was 0.4% per year. Useof a more realistic growth rate of 1% leads to a projectedpopulation in 1995 of 101.400 which is substantially below thereported figure of 127.600 in the preparation report.

4.3 Environmental Impacts

- 147 -

Annex 10Page 12 of 38

Drainale

Due to the type of industry in Palu, the potential for adverseimpacts from the rehabilitation of the drainage system is notconsidered significant. There are minor purchases of land requiredfor the proposals but these do not require displacement ofresidents.

Roads

The present road system is operating at a high level of servicewith virtually no traffic problems and a well designed network ofarterial roads. No significant negative effects of the proposalare anticipated.

Solid Waste

Palu has an existing landfill site of some 23 ha which is presentlyoperating in an uncontrolled fashion. Waste is being deposited ina random fashion along an equally random system of roads & trucksthat criss-cross the site. Consequently the environmental impactof the proposal will be positive as the site will be managed as asanitary landfill. It is recommended that the site for operationof the new landfill will be located as far as possible from thetown arboretum which is being developed adjacent to the site (seePhotos 1 & 2).

Sanitation

It is anticipated that the proposed sludge disposal facility willalso be located within the existing 23 ha solid waste land;illarea. With careful site selection of this facility (only 3000m isrequired) environmental controls can be integrated with those forthe operation of the sanitary landfill.

4.4 Mitigations

Operation of the sanitary landfill and sludge disposal facilitywill require compliance with the RKL, RPL management and monitoringplans prepared under the requirements of Indonesian legislation.Satisfactory performance of environmental objectives for operationof these facilities is part of the project implementation agreementbetween three levels of government. Adequate supervision ofperformance is considered to be a priority task for IBRD follow-up.

5.0 UJUNG PANDANG

5.1 Project Description

The program that is subject to environmental requirements includess

- 148 -Annex 10

Page 13 of 38

Drainage - completion of urban drainage in the "old" town(1,000 ha)

- the establishment of sound O&M services- all flood control works under the Lower Jeneberang

Scheme- completion of Urban drainage in two areas in the

"old" town (400 ha)- all studies and works, related to secondary

drainage in the new urban development area (1,000ha)

Roads - implementation of a small part of the roadrehabilitation works, which were identified duringthe RCUTP Study (1990)

- rehabilitation works on local roads- works on the artery road system, as identified by

JICA (1988) and already committed at present, i.e.construction of the inner ring road

Solid waste - maintaining the stock of rolling equipment (trucks)at its present level and providing additionalequipment, with the aim to expand the collectionservice from the present 46% to 67% of thepopulation in 1995

- the establishment of a solid waste discharge site

Sanitation - the execution of a low-cost sanitation program- the expansion of septic tank clean-out services

KIP - the execution of Kampung Improvement Programs overa total area of 250 ha

5.2 Baseline Conditions

Kotamadya Ujung Pandang is located in the South West of theprovince of South Sulawesi (Sulawesi Selatan). The urban area ofUjung Pandang lays on the Eastern shore of Strait Makassar. Theentire city is built in the coastal plain; the mountain range ofSouth Sulawesi starts ablut ten kilometres East of the city'sadministrative boundary. Several tiny islands off shore form partof the kotamadya.

Ujung Pandang is the capital of the Province of South Sulawesi. Iti_ the largest city and the main commercial and government centreof East Indonesia. Ujung Pandang is to serve as its main gateway

ANNEX 10

- 149 - Page 14 of

Photo 1Existing Disposal Area (Palu) looking into the 23ha site.

Random Dumping and Burning along all tracks

Existing Disposal Area (Palu) looking towards the Bay area & city.Note Arboretum on immnediate right.

- 150 -

Annex 10Page 15 of 38

and major growth centre for the accelerated development of EasternIndonesia.

The kotamadya consists of 62 kelurahan divided over elevenkecamatan. In 1955, the total kotamadya will have 973,000inhabitants of which 849,500 will live in the urban area.

The terrain of the Ujung Pandang urban area is generally flat. Theold part of the city (old Makassar) is built on a sandy ridge at 2to 3m above mean sea level. Two regional rivers are flowing northand south of the old town into the sea: the Tallo and theJeneberang river. Other local rivers are the Sinrijala and theSinassara. The alluvial plains around the old city are low.

Two rivers play a dominant role in the hydrology of the KotamadyaUjung Pandang; the Jeneberang and the Tallo rivers.

The Jeneberang drains a catchment area of approximately 730km2

which extends into the mountains of this couthern part of theprovince. The river borders the south of the Kotamadya. At highriver flows, water from the river used to spill over the north bankinto the watershed of the Tallo river, inundating flood plains oftributaries of the Tallo (i.e. of the Pampang river).

The Tallo river 2itself has a smaller catchment area than theJeneberang (420km ), which borders the latter to the north. In itslower regions, the Tallo river has tidal characters; the tideenters deep into the forementioned flood plain. The combination ofoverflows from the Jeneberang, high rainfalls, low elevation,flatness and proximity to the sea, makes the area extremelysensitive to flooding.

The old town of Ujung Pandang is located west of the flood plainsof the Tallo river, on a slightly elevated mount. Natural drainageconditions on this mount are in principle good: water can drain ofto all sides.

An urban drainage system has gradually been development with thegrowth of the town over the past centuries. The most recentimprovements are being realised under the so-called URBAN V DRIP(Drainage Improvement Program).

Urban drainage in the eastern parts of the Kotamadya, especially inareas located in the flood plain of the Tallo c.q. Pampang rivers,is bad. Urban development is growing fast here; many housing esatesand government offices have been, and still are being, built in thearea. Tertiary drainage is being provided with most of thesedevelopments, but as long as primary and secondary drainage is nottaken care of, regular flood problems will continue to exist.

- 151 -

Annex 10Page 16 of 38

Land Use and Urban Development, Ujung Pandang

The largest proportion of land in the urban area is residential.Wet-lands, ponds and agriculture form the main land use in theremainder of the administrative area. The harbor complex is locatedin the north-western part of the urban area; it is the largestharbor of Sulawesi serving both foreign and Indonesian vessels.Hasanuddin Airport, which provides links with the main cities ofIndonesia, is located north east of the administrative area. It isconnected to the city by the old Maros road and the new toll-bridgeroad. The large Hasanuddin University complex is located in theeastern part of the administrative area. Industrial areas exist,and are planned to be further developed, in the north east.

A master plan was prepared in 1984/1985 for a planning period up to2004. (For the purpose of the 1988 highway study the master planwas extended over a larger region for a period up to 2009). Zoningplans and detailed plans are being prepared.

Population, Densities, Urban Area

Zrowth rates used previously were based on an average ofregistration data, master plan rate, and NUDS rate. The result wasconsidered too high. Available census data for 1971 and 1980present a high population growth (5.59%) reflecting the 1971expansion of the urban area. Next to the 1980 census data,registration data were available for the Kotamadya for 1983 through1986 and 1988. For projections, growth in recent years was averagedwith growth over the total period, leading to 2.16% growth for theKotamadya.

Through previous studies detailed data of 1986 were available forthe 62 kelurahan that form Ujung Pandang. These survey data perkelurahan covered population size and areas for both built-up andrural ares. The total population in 1986 was 803,294 inhabitants,of which 674,845 were living in the urban area. The urban area isdefined here as the area with densities of over 50 inhabitants perhectare.

The growth rate of 2.16% was applied to the total population ofUjung Panda-e to make projections for 1990 and 1995. A gravitymodel was used under previous studies for the distribution ofpopulation growth over the kelurahans. It weighs for relativegrowth and physical development per kelurahan the location,existing infrastructure and physical conditions against existingdensities. Through the gravity model the total population growthwas distributed over the 62 kelurahan for the years 1990 and 1995.

The total population of the Ujung Pandang at the end of 1990 is875,000 people, of which 762,300 will live in the urban area. Thetotal population at the end of 1995 is projected to be 973,700, ofwhich 853,700 will live in the urban area. During the planning

- 152 - Annez 10Page 17 of 38

period the average population density in the urban area is expectedto grow from 170 to 185 people per hectare.

5.3 Environaental Impact

Drainace

As the proposals require the cleaning and maintenance of primarydrains in Ujung Pandang it is anticipated that there is potentialfor the need to selectively handle drainage spoil. Fieldinspection of industry in Ujung Pandang showed significant metalprocessing, engineering, paper production, timber and agriculturalprocessing. Sampling of drainage spoil would be advisable in orderto establish the risk of the presence of toxic and/or harzardousmaterial.

There was also evidence from field inspection that there ispotential for significant displacement of legal residents to gainaccess to major drains. The potential for significant displacementis considered to be moderate. A P.I.L. study is required toaddress the above potential environmental effects (see Photo 3).

Roads

One component of the road proposals involves the extension of anorth-south arterial connection between the airport toll-bridge andthe outer Southern suburbs of t;e city. This proposal will involvethe need to displace approximately 300 lower middle and middleclass households which are presently located within the proposedright of way. Alternative corridors would be possible but thedensity of housing in this area will mean that some displacement isalso necessary. The benefits of this connection are considerableas an alternative North-South route is considered a high priorityto complete a basic arterial network (see Photo 4).

Solid Waste

An existing landfill is presently located some 17kms to theimmediate west of the main town and is operated with poormanagement practices. As the proposal will lead to the developmentof a properly managed sanitary landfill the effect of the proposalwill have a significant positive impact on the environment in thesecurity of the landfill.

Sanitation

A sludge disposal facility has been recently completed and been inoperation since Sept. 1990. Inspection of this facility showedthat it was being operated with poor management practice. Themonitoring of effluent discharge to the nearby river was limited toonly one parameter (i.e. pH). Improvemants to the access roadwhich is presently in poor condition is part of the projectproposal. This improvement will considerably increase the level ofservice of the facility and will have substantial positive impactson the environment as the expansion in the use of septic tasksystems Present round trip travelling time is approximately 3 hoursper each truck.

- 153 -

Annex 10Page 18 of 38

There is heavy dependence on the use of on-site sanitation for themajority of households in Utjung Pandang.

Also there is heavy reliance on the use of shallow groundwaterwells for water supply. From an environmental and public healthperspective this situation is not satisfactory especially in lightof projected growth rates. Consequently, improvements in theefficiency of the sludge disposal facility has the potential forsignificant improvement and protection of ground water resources.

5.4 Mitigation

Drainage

Sampling of drainage spoil was carried out as part of thepreparation of the P.I.L. document. It is anticipated that thismaterial will require selective handling during drainrehabilitation. More detailed A.N.D.A.L. study is required beforeimplementation.

Roads

A resettlement plan according to the IBRD O.D. (June 1990) wassubmitted before loan negotiation. The plan offers several optionsfor the 300 households to be resettled: (a) housing in agovernment-sponsored new housing development; (b) provision ofplots fully serviced with infrastructure for housing; (c) cashcompensation. In addition the plan offers assistance for moving upcost of living support during the transition period and assistanceto find equal standard employment, if necessary. Duringnegotiations, it was agreed that the plan will include a budgetindicating the expected cost of resettlement and the financingsources.

Solid Waste

A set of performance indicators to measure satisfactory progress ofenvironmental objectives for operation of the new sanitary landfill has been included in the project preparation agreement.These indicators have been included in order to assess progress oflocal government operation of the landfill during supervision ofthe loan.

Sanitation

Performance indicators have been included in order to assess thesatisfactory progress on environmental objectives during projectsupervision. A study of other sanitation options (includingsewerage) for Ujung Pandang has been dropped from the project. Itis recommended that an alternative funding source be identified assoon as possible in order to minimize any further degradation ofgroundwater resources in Ujung Fandang.

- 154 - ANNEX 10Fage 19 of "r

Photo 3 '

Ujung Pandang - - *

Panning for Gold - _

from Drainage Sediments - _ 2 ,

- ~ ~ ~ _ -aS

F.

a~~~~~~~~~

Photo 4

Ujung Pandang- Alignment of rew arterial road with potential fordisplacement of residents

- 155 -Annex 10

Page 20 of 38

26.0 KENDARI

6.1 Project Decription

The elements of the program subject to IBRD environmentalrequirements are:

Drainage

As the town of Kendari faces serious flood problems, a town widedrainage study is required, which will result in recommendationsfor expensive capital works. The drainage and flood control plansneed to be complemented with land use plans, both for the town andthe surrounding areas.

Maintenance and regular cleaning of the existing drainage systemwill be upgraded in importance. It is anticipated that theconstruction works will total Rp. 1,315m.

In Unaaha, the neighbouring smaller centre, no large investmentsare needed. Only a drainage outline plan will be required.

Roads

No investments on new arterial roads are necessary during thecoming 5 years. There will be a program of relabilitating the otherroads in the town. A collector road will be widened and improved aswill local roads.

Solid Waste

Solid waste collection services will be expanded drastically duringthe coming five years. Equipment will be purchased. Anenvironmentally acceptable alternative for the present solid wastedischarge site is to be located.

A small solid waste management program for Unaaha has been includedin the urban investment plan: the procurement of a truck and thedevelopment of an acceptable final disposal site.

Sanitation

The town pians to set up a pilot credit scheme for the constructionof 450 on-site sanitary latrines. The scheme is aimed at the middleincome classes of the town's citizens.

6.2 Baseline Conditions

Kendari

Kendari at present has the status of a Kota administratip. At thesame time it functions as the center of this south-east part of the

- 156 -

Annex 10Page 21 of 38

vast island of Sulawesi, ebing the largest town on this side of theisland and the cpaital of the South-East Sulawesi province.

Kota admin'stratip Kendari is located at the South-East part of theprovince of South-East Sulawesi. The urban area of Kendari bordersthe coast by the bay of Kendari, horseshoe shaped; to the West andNorth is the central mountain range of the South-East Sulawesiarea. The south side is more flat and swampy.

Unaaha

Unaaha is the capital of the Kabupaten Kendari. Because smallprojects in the capital town of Kabupaten Kendari, Unaaha, areincluded in this report as well, a smali description is given aboutthe geographical facts of this town.

Unaaha is located in the hinterland of Kendari town, some 70km westof it, on the left bank of the Kanaweha river, where the main roadfrom Kendari to Kolaka crosses this reiver. The administrative areacomprises two centers; the old market town of Wawotobim and, at adistance of 8km, the new kabupaten capital of Unaaha. Between thesetwo centers the area has a rural character. Inhabitants totalapproximately 8,000 in about 750 ha of planned urban area, while intotal there are 32,000 inhabitants in about 4,230 ha total.

Kendari is the largest town of the province of South-East Sulawesi.Its port (located just in the urban area at the most north-easternend) is the principal port. The kota administratip consists ofthree Kecamatans, Mandongan, Kendari and Poasia and covers 17,673ha, of which 916 ha is urban. In 1995 the total population isexpected to be 166,590 inhabitants of which 84,233 inhabitants willlive in the planned urban areas.

The terrain of the Kendari urban area is hilly except for thewestern part adjacent to the bay, which is generally flat. Thenorthern part has steep slopes varying between 16 and 26% while theoutlying area of the western part has slopes varying between 9 and16%. The highest elevation in the urbanized area is about 50 metresabove sea level. The town is drained by one regional river (Lepo)and its tributaries, three local rivers and several creeks, all ofwhich flow into the Kendari bay.

Land use and Urban development Kendari

The largest proportion of land in the administrative area isagriculturally used. The remainder of the administrative areaconsists of residential land. Little industrial development takesplace and provides employment for only a minor part of theworkforce (less than 0.2%). Agriculture (53%), government,transport and commerce services (22%) form the main source ofincome. Employment reached 46% in 1984.

- 157 -Annex 10

Page 22 of 38

A town master plan and zoning plan were developed for Kendari townin 1985 by PUOD/Ministry of Home Affairs and for Unaaha by BPPT ofthe ministry of Science and Technology. The projected land use 2004for the administrative area as compared to 1983 is shown below:

Land Use Area (ha)Land Use 1983 2004

Housing 1,409 2,890Commercial/trading 110 329Government 274 310Industries/warehouses 56 69Social Fac;.lities 286 624Agricultural/Estate 14,837 12,669Others 789 866

Total 17,760 17,760

Source: Master Plan for Kendari, 1984

Actual development takes place in the west part of the townKecamatan Mandonga, Kelurahan Mandonga and Wua Wua, developmentZone II. Here government functions prevail while housingdevelopment is initiated even more to the south (flat, swamp area)and Kecamatan Kendari, development Zone I, where the harbor(Kelurahan Kendai) and the older town are located.

Constraints are formed by the hills on the north and east side oftown, while swamps are located at the south-east part in the Lepocatchment.

6.3 E!lvironaental Impact

Drainage

The focus of this subproject will concentrate on rehabilitation andcleaning of the centre Municipal drainage system. In Kendari thesteeply sloping land in close proximity has been intensivelycleared for agricultural purposes. These practices have led to ahigh rate of sedimentation in the drainage system. As well, thereis a substantial component of solid waste being placed in thesedrains. Consequently, the impact of the project will be beneficial.The integrated approach addresses both the physical environmentalissue of sedimentation with construction of sand detention traps onthe fringes of the Municipal drainage system and on the existingpractice of dumping Municipal solid waste into the drainage system.

- 158 -

Annez 10Page 23 of 38

Roads

The main focus of che loan program is on rehabilitation of theex .sting system so the significant environment problems areanticipated.

Water SupplY

The principal activity will be rehabilitation of the existingsystem to secure an all-day abstraction of raw water and to upgradethe existing treatment works. No significant environmental problemsare anticipated as no new supply capacity is required until atleast the year 2000.

Solid Waste

The present location of the Municipal landfill site is asignificant environmental problem. Not only are current managementpractices less than satisfactory the location is exposed andcausing air quality and odour problems for the surroundingpopulation. Relocation of this landfill site is considered to be apriority for improvement of the amenity. This issue has beenaddressed in the P.I.L. document prepared for the subproject andadditional A.N.D.A.L. studies will be carried out as part ofproject implementation.

Sanitation

This subproject will significantly improve sanitation conditijns ofthe local residents which to date have relied on on-sitesanitation. Either pit latrines and septic tanks have been utilisedin close proximity to groundwater wells. The scheme will lead to450 sanitary latrines and the provision of pumpout facilities. Thelocation of the sludge facility will require a siting study as partof the program. A P.I.L. for this subproject is not required untilthe year before implementation (i.e. 1992-93).

6.4 Mitigation

For bot'- solid waste and sanitatijn projects supervision of theimplementation of the construction of a suitable sanitary landfilland de-sludging facility is considered critical for satisfyingenvironmental objectives. The measurement of satisfactory progresson meeting objectives has been specified in the projectimplementation agreement between the levels of government.

7. 0 KABUPATEN LUWU (PALC4 -'

- 159 -

Annex 10Page 24 of 38

7.1 Project rescription

Drainaae

The majority of the works are improvement and rehabilitation of theexisting system. Some new construction is proposed and involves thestrengthening and widening of the Amassangan River. Also allowedfor in the program is the creation of an agency which would carryout regular maintenance services.

Roads

The main thrust of this progra«i is rehabilitation of the existingsystem. The reconstruction of two bridges is part of the proposal.

Solid Waste

This subproject involves the expansion of collection services andthe acquisition and preparation of an environmentally acceptablefinal disposal site.

Sanitation

This subproject involves the provision of a credit scheme for lowcost sanitary latrines and the provision of pump out services forexisting septic tanks. Public toilets will also be increased inpoorer areas.

Water SupplY

The most controversial subproject for Palapj from an environmentalperspective is the expansion of the drinking water supply.

A new river intake would be built, the treatment plant enlarged andthe distribution system is to be expanded. From a presentpopulation being served of 58,000 there will be an increase to81,000 or 96% of the projected population.

7.Z: Baseline Conditions

Palopo at present has the status of a Kota Administratip. At thesame time it functions as the center of this North-East part of thevast Province of South Sulawesi, being the largest town on thisside of the province.

The location of Palopo is indicated on Map 0.1. The urban area ofPalopo borders the coast of the Bone Bay, to the west is thecentral mountain range of the South Sulawesi area. Theadministrative area is depicted on map 0.2.

- 160 -Annex 10

Page 25 of 38

The scope of the IUIDP project preparation for Kota AdministratipPalopo covers proposals for the urban area of Palopo for thedevelopment of 7 subsectors of infrastructure, including watersupply.

Palopo is the largest town in this part of the province of SouthSulawesi. Its port (located just in the urban area at the mosteastern end) is the principal port for the Central part of theprovince. The kota administratip consists of two Kecamatans, Waraand Wara Utara and covers 23,324 ha total of which 687 ha urban. In1995 the total popultaion is expected to be 105,958 of which 69,770inhabitants will live in the urbanized areas.

The terrain of the Palopo urban area is generally flat. The terrainslopes moderately (<8%) towards he Bone Bay. Two rivers cross thetown at the north and south side and discharge in to the Bone Bay.Slopes in the inner urbanized area vary between 2 and 8 percent,while those in the outer urbanized area vary between 2 and 15percent. The highest elevation in the urbanized area is about 20meters above mean sea level (MSL). The town is drained by tworivers and their contributories, Amassangan and Boting river.

Map 0.3 represents the (1986) land use in Palopo. The largestproportion of land in the administrative area is used foragriculture. The remainder consists of residential land. Littleindustrial development takes place and provides employment for onlya minor part of the work force (<8%). The agriculture (71%),government, transit and commerce functions (12%) of the town formits main source of income.

A town maste. plan and zoning plan were developed in 1985 byPUOD/Ministry of Home Affairs. The projected land use till 2005, isdepicted in map 0.4.

The projected land use 2005 for the administrative area as comparedto 1986 is shown below;

Area haLand Use type 1986 2004

Housing 477 1,610Commercial/trading 30 30Governments 22 25Industry/Warehouses 40 52Social Facilities 127 215Agriculture/Estate 3,426 5,782Others 15,038 11,446

Totals 19,160 19,160

Source: Palopo master plan, 1986

- 161 -Annex 1 0

Page 26 of 38

The actual development takes place in the south part of the town inKecamatan Wara, Kelurahan Tompotika, Amassangan and Boting.Constraints are formed by the hills on the west side of town.

The urban master plan emphasizes the development of the commercialarea in the town center and the housing areas towards the south-east and north along the Trans-Sulawesi highway. The land usecontrol agency Dinas PU Kabupaten Luwu seems to be in control andrecommendations from the master plan are generally followed, tillnow.

Infill rather than expansion should be sought, in order to makemore efficient use of the expensive infrastructure which is alreadyavailable.

7.3 Environmental Impact

Drainage & Roads

No significant impacts are anticipated.

Solid Waste and Sanitation

Both of these subprojects require the location of a new sanitarylandfill site and a new sludge treatment facility for septic tankpumpouts. Both facilities have potential for significant impact onthe environment. Preliminary environmental reports (P.I.L.'s) onthese aspects are required by loan negotiations. Also, thesefacilities shall be subject to project supervision using preferenceindicates outlined in the project preparation agreement.

Water Supply

As the scale of the increase of water requirements for thisproposal was considered to have potential environmental impact aP.I.L. report has been prepared as part of project preparation.This report distinguishes the kinds of impacts that could beanticipated.

Given the level of detail of this P.I.L. report it is consideredthat its recommendations have made a fair assessment of theexisting situation. On the first issue it is recommended thatagricultural development in the proposed catchment area be limitedespecially on the steep slopes. This recommendation will requirecoordination between a number of Level I departments and thepreparation of a catchment protection plan.

On the second issue it is clear that there is a need to carry outan additional investigation of the downstream effects ofabstraction of water from the Latupa and Kangkaluku Rivers. Such aninvestigation will probably demonstrate that additional irrigation

- 162 -Annex 10

Page 27 of 38

work will be necessary to ensure continued supply to the sawahspresently fed by the Amassangan River. An irrigation scheme knownas the Mawa irrigation scheme has already been planned to increaseirrigation efficiency in this area. However a careful investigationof the social, financial and economic costs of increased waterabstraction should be carried out. Such an investigation should becompleted before loan negotiations. This study should be carriedout as an A.N.D.A.L. as the social and economic impacts ofabstraction may be outweighed by the positive impacts of improvingthe existing water supply to the township of Palapo.

On the third issue, concerning the effects of construction of thescheme in Palapo there is no need for additional A.N.D.A.L.investigation. However, the environmental management issues raisedby the construction and rehabilitation of a city water supplyshould be addressed in implementation level - RKL and RPLmanagement and monitoring plan for the first stage by loannegotiation. An example of this staged type of managmeent approachis the water supply component of the JUDPII project.

7.4 Mitigation

The results of the A.N.D.A.L. investigation should result in aseries of mitigating measures to offset the effects of riverabstraction of downstream users. The main strategy will be toincrease the efficiency of the existing system through improvementin the irrigation canal system. However, a thorough investigationof any such scheme should be included in the scope of theA.N.D.A.L. study.

Smaller Cities(Pare Pare, Bitung, Garantalo, Watampone)The other four cities in the IUIDP program foL Sulawesi are smallregional cities of less than 100,000 population. The proposals forfunding by the IBRD are small in relative terms and involve mainlyrehabilitation and minor extensions to existing systems. Thesignificance of these projects from an environmental perspective isconsidered minor and more detailed consideration was not considerednecessary. Field inspection of two of the cities (Bitung andGorontalo) confirmed this view.

The most significant general issue raised by these towns was theneed to locate both final disposal sites for both solid waste andhuman sanitation (septic tank) waste. As described in the othercities, the project implementation agreement has specified specificindicators so that the ongoing management of these facilities (oncelocated) can be monitored through project supervision. The natureof the type of proposals which are proposed in the smaller citiesare summarised in Table 1.

ANNEX 10Page 28 of 18

TABLE 1: SUMMARY OF PROPOSALS FOR SMALL CITIES LESS THAN 100,000 POPULATION

Eevuatd WtrPopuJdon LUrtn Road Urban Drainage Solid Waste Sanibtion Supply

P.re P* r 0Z5 hncas exiin 0 & h Incrsd 0 a Mi Purchse 3 itm equlpment Increase in public tieb. pit Improvement in waterCompee sm_ setios P habiltein f two maor Construct minor facii. og. lamrins nd sptie tan" ditubution and pressurmaIn drve Trsnsir Sttion Purchae septic tankComplkte s1 secion of AddWiorna 10 Sand Tra Rehbioita PA pumpout equipmertPwumes Vwn Road Purchse of I excavatorMw wors an secondary an

lcal road

eung 356wo Smelt improvent and hncras 0 & M Purchas of small Collection Soeleon te dOw sudge Rehabilition o fxldlingrshub.Mahon of bcal rods Clean-up and rehabilitation of equipment dipea 00m) o septic tan systemine cily pnm ernd Select o nof w n disposl pumpout srvic New resrvoir required P50m wsecondey drains sit 6 ha requred)Some instalation of sand tra a,

Wlanwpone 0.,700 Work an secton di souEem Rehabilitaton of primay drain Selecton of new final dsposa Purchas of one tuck for Extnion of exising sistmK(bupstn gioni rung roa cut rconstruction end sil p2.25 hectere) pumpoui of eptic ts No bnd ecq"isition reqidBone) 2P,700 reiob ewoks on C ctor wnd rcontucton of scondsy Purchase of smell equimdt Seection of site icr sludge except in two I the merUd-* local toads drln c unprovd collection system disposal cnirncreased 0 & A

orvt0ilo 3900 _caos a rehebion Ceoaing and rehabilitation of Soelcbon dl now final disposal Credit schome to encourag Exnson ond imvemn ofof prlmy tex tey drins pimay n terty drain ail (1 ha) use of septic systm nd soak- exing systemPurchae of 2 trucks an smal pitb No list acquition noosewycolection equipmet Selecion od o disposal sit br

- 164 -

ANNEX 10Page 29 of 38

Sulawesi - Irian Jaya Urban Development Project

Environmental Assessment

Part II: Irian Java Water Supply Prolects

1.0 Executive Summary

The water supply sub-projects of the SIJUDP could cause minorimpacts on the environment. There is also potential forenvironmental degradation, not associated with the SIJUDP, toaffect medium to long-term project benefits expected from theeight water supply sub-projects of this loan.

It is expected that any negative impacts would be small andeasily controllable through minor alterations/additions to thesub-project design. Environmental impacts on the sub-projectsare somewhat more serious.

If volume and water quality of the sources supplying the IrianJaya water supply sub-projects are not protected, the investmentproposed may not result in the expected benefits to the localurban population. It is therefore necessary for the Governmentof Indonesia to institute, through its local government network,a catchment protection and erosion control program.

2.0 Policy, Legal, and Administrative Framework

The Sulawesi/Irian Jaya Urban Development Project (SIJUDP) mustbe assessed for possible environmental impacts that may beassociated with construction and/or operational activities. Therequirement for environmental assessment comes from both theGovernment of Indonesia (GOI) and from the World Bank.

2.1 GOI Framework for Environmental Assessment

The GOI requirements for environmental assessment of developmentprojects derive from Law No.4/1982 and Regulations PP29/1986(implemented in 1987). The environmental regulations of 1986were explained in a series of Decrees issued through the Ministryof Population and Environment (KEP 49-53/MENKLH/6/1987).

The Ministry of Public Works, acting through the authority ofPP29/1986, is in the process of developing operational proceduresand project specific environmental guidelines for assessment ofpublic works projects. Decrees by the Minister of Public Workshave now been issued for operational procedures (Number557/KPTS/1989) and project environmental screening (Number531/KPTS/1989).

- 165 -

ANNEX 10Page3O of 38

Most recently, national guidelines (PP 20/1990) have been issuedthat cover control of pollution in national waterways. Theseregulations directly affect water resource development activitiesof the Ministry of Public Works.

2.2 World Bank Environmental Assessment Requirements

Projects undertaken with the assistance of World Bank Loans mustmeet environmental as well as economic and engineering"feasibility" criteria. The Tsankls environmental regulations nowcome under a single, unifying, Operational Directive (OD). Thisdirective is OD 4.0, which became effective in October, 1989.The environmental assessment for the Irian Jaya sub-projects ofSIJUDP that follows also addressed the possibility ofresettlement and land compensation. These issues are covered bya separate Bank directive (OD 4.30: Involuntary Resettlement,dated 29 June, 1990).

3.0 Project Description

The Irian Jaya water supply sub-projects include new, expansionand/or rehabilitation of existing water supply systems in thecities of Sorong, Fak Fak, Nabire, Manokawari, Biak, Jayapura,Wamena and Serui. Each sub-project also includes technicalassistance for project implementation and institutionaldevelopment and training. These last two project components donot require environmental assessment (both logically andaccording to both Bank and GOI project screening guidelines).

4.0 Baseline Data

The description of baseline conditions presented below is at bestvery general. It is based on personal visits to Sorong, Biak andJayapura, and discussions with the project preparation consultant(Scott & Furphy Engineering) about the other 5 cities involved inthe Irian Jaya water supply sub-projects.

Fresh water resources of the areas in and around the 8 targetedcities are, surprisingly, quite limited. This is unusualbecause:

1) The population density of Irian Jaya is very low. Thisis true of both the rural and urban areas;

2) The catchments of and around the 8 cities for whichwater supply sub-projects are planned are relativelyundisturbed (by Indonesian standards).

Specifically, permanent surface drainage lines tend to be small,hydrogeologic conditions limit the size of extractable aquifers,and water quality of both surface and ground waters can often be

- 166 -

ANNEX 10Page3l of 38

unsuitable for water supply because of turbidity or because theyare contaminated by chemical and biological pollutants (bothnaturally and as a result of human activity). The vegetationcover of the river catchments are, for most cities, still heavilyforested, although the lower part of the watershed of the KaliRemu which flows through Sorong has been adversely affected byslash and burn agriculture and artisanal logging.

The second commonality between the 8 water supply sub-projects isthat all (with the exception of Jayapura) are supplying verysmall numbers of people. As a result, storage facilities andtransmission mains also tend to be small.

The demographic trend in Irian Jaya, according to Tk I and IIlevel local government officials, is for rural people to migrateto the cities. Migration into the cities does not appear to be ashort to medium term problem (with the exception of Jayapura)because of the small size of the cities in Irian Jaya and thelimited number of people living in the rural areas of theProvince. However, this trend may, if uncontrolled, increase thepressure on in-stream resources (the water flowing naturally inthe drainage line), as poorer people tend to settle near the bestavailable source of fresh water. Direct use of surface andground waters (ground waters tapped by dug wells) was obvious,but not extensive, in Sorong (river) and Biak (dug wells).

5.0 Environmental Impacts

When talking about environmental impacts, it is important torealise that there can be project impacts on the environment, andimpacts of the environment on the project. The Irian Jaya watersupply projects contain elements of each of these impacts.

First, there is a possibility that water abstraction required forthe operation of one or more of the eight water supply projectsmight negatively impact on existing and future in-stream uses andusers of the natural surface and groundwaters.

Secondly, it is also possible that deterioration of thewatersheds controlling volume and quality of the source waterfeeding the 8 targeted cities could affect the medium to long-term viability of these projects. This would be an example of anenvironmental impact on a project.

5.1 Project Impacts on the Environment

Of the three Irian Jaya water supply sub-projects visited,conflict between in-stream users of the resource (including useof groundwater from dug wells) and project demand for water onlyappeared possible in Sorong. However, conflict between existingusers of the water and the water demand of the various sub-

- 167 -

ANNEX 10Page 32 of 38

projects cannot be discounted in the other 5 cities not visited.The potential for sub-project impact on in-stream users couldresult in a lessening of expected project benefits because thepeople affected are likely to be those least able to afford watersupplied by the sub-projects.Water is the most basic requirement of life. Where water is freeand of useable quality, the likelihood of direct use by poorermembers of the community is very high. So, reduction in volumeand/or quality of shallow aquifers, and water in surface drainagelines, can seriously affect those individuals least able tocompensate for the loss through purchase of reticulated water.

A second potential project impact on the environment also relatesto the availability of water. There are some areas, such asBiak, where expansion of the urban zone appears to be, to a largeextent, controlled by availability of water. If permanent riversor streams, or shallow groundwater resources are not available,urban growth is often limited by the distance people are willingto carry water from the available source. In this case, caremust be taken that the reticulated system does not encourageurban development to move into forested areas of the water supplywatershed.

The final potential impact that might result from implementationof one or more of the eight water supply projects relates todisposal of waste water. As only 3 cities were visited, Biakwill be used as a case study example of the potential for impact.

The consultant s socio-economic and demographic survey indicatesthat more than 80% if the population of Biak live in the servicearea of the proposed water supply improvement scheme. Publichealth statistics presented in this report also indicated a veryrapid growth in the incidence of malaria, a water borne disease,from 1981 to 1985 (the time of publication). These statistics goon to suggest that 25% of the population (223 cases per 1000people) attended medical facilities for the treatment of malariaduring 1984, and 95% of these cases were in the urban centre ofBiak.

The improvement in existing water service and an increase in thenumber of connections proposed in the project will result in anincrease in water consumption and a subsequent increase in thevolume of waste water produced. This may not be much of aproblem in the less populated areas of Biak where water will belikely to seep quickly into the ground. However, in the urbanareas where house density and urban infrastructure is greatest,there is an increased probably that waste water will pool andbecome stagnant. Describing the drainage system of the urbancentre of Biak as very poor would be an understatement. In fact,drainage in this area would probably not be significantly

- 168 -

ANNEX 10Page 33 of 38

different even if the drainage system did not exist at all.

Additional waste water from an improved water reticulation systemis likely to increase the amount of standing water in the towncenter and this could increase the incidence of malaria andgastrointestinal diseases. This issue was considered importantenough for the Bank (co-financed by the Australian InternationalDevelopment Assistance Bureau, AIDAB) to commission a SanitationReport for Irian Jaya that was published in 1985. This reporthighlighted the connection between water supply, disposal ofhuman wastes and public health. The concern expressed in theBank's sanitation report was supported by observations madeduring the Pre-appraisal Mission to Biak.

5.2 Environmental Impacts on the Project

As previously mentioned, abstractable water resourceseconomically available are very limited in and near the eighttarget cities. Both surface and ground water resources are to beinvolved in the Bank supported water supply projects for the 8Irian Jaya cities. Some sources will be abstracted for the firsttime, while others have been used as water supply sources formany years. All, however, require some measure of protection.

The concern is that uncontrolled development near or in thewatershed of these water sources could cause:

- Deterioration of water quality which would requireexpensive treatment of the water to ensure potability.This could change the economic viability of someschemes;

- Reduction of water volume which may require other, moredifficult and expensive development works, to beundertaken.

Specifically, there appears to be strong justification toexercise control over land use (urban, industrial andagricultural development), illegal activity (logging and slash-dnd-burn farming), and infrastructure development in the watersupply catchments. This control should include:

- Effort to convert land uses in the targeted watershedsfrom those that are not compatible with the need toensure a stable discharge with good water quality tomore acceptable uses;

- Control of urban and industrial development in thecatchment to prevent biological and chemical pollutionof these water supply sub-projects.

- 169 -

ANNEX 10Page 34 of 38

Rehabilitation of watersheds through afforestationprograms, soil conservation works and river bankstabilization.

6.0 Analysis of Alternatives

Review of the project preparation consultant's reports, includinga review of water resources in and around the eight targetedcities, indicates that the sources chosen for development are thebest ones. Water 7-esources of sufficient discharge and qualitythat can be econon.ically developed, considering the small numberof consumerp, are so limited that the only alternativedevelopment strategy would appear to be the "no development"option. This option would result in a degradation of the urbanenvironment, ultimately resulting in sever urban environmentalproblems.

7.0 Mitigative Plan

Generally, there are three methods of dealing with environmentalproblems. These are:

- Elimination of the problem;- Minimisation of the problem;- Mitigation of the problem.

The objective of environmental impact assessment is to identifypotential environmental issues early enough in the projectdevelopment cycle to allow the problems to be designed out of theproject. Elimination of the impact is the best solution, but ifthe problem is too great or has its origin in the nature of theproject itself, it is often possible to design the project insuch a way that the impact is minimised to a level acceptable tothe those affected.

Where an impact can neither be eliminated or minimised, the onlyremaining option is to physically compensate through outlay ofmoney. This method of dealing with impacts is defined in thisenvironmental assessment as "mitigation". As mitigation is anenvironmental management tool, and as the potential impactsidentified in these water supply sub-projects do not appear to bemajor, the "mitigative plan" will be included in the discussionof environmental management (see Section 8.0).

8.0 Environmental Management and Training

8.1 Management of Potential Negative Impacts

The possible management provisions that could be included in theIrian Jaya sub-projects to remove the negative effects of

- 170 -

ANNEX 10Page35 of 38

environmental issues identified above are:

ISSUE - Potential resource conflicts between abstractionfor water supply and in-stream users of therebource;

MANAGEMENT - Conduct PIL (preliminary environmental impactassessment, on those sub-projects thatscreening in icates could cause environmentalimpacts, including resource conflicts todetermine likelihood of impact and toidentify any local residents that would beimpacted by reduce surface discharge orground water level;

= If in-stream users will be negativelyaffected, the project should includeprovision for construction of publicstandpipes at strategic locations to supplywater without charge to those residents thatare unable to pay for regular reticulatedsupply

ISSUE - Water supply expansion into sensitiveenvironmental areas;

MANAGEMENT: - Conduct PIL (preliminary environmental impactassessment) on those sub-projects thatscreening indicates could cause environmentalimpacts, identifying any sensitive areas thatmight be negatively affected throughexpansion of water supply into or near thosesensitive environmental areas;

- Redesign reticulated networks that impingeinto sensitive environmental areas or thatmight encourage population increase insensitive areas;

ISSUE: - Waste water from increase in water supply sub-projects may cause public health problems if urbandrainage is unable to cope with the extra water;

MANAGEMENT - Conduct PIL (preliminary environmental impactassessment) on those sub-projects thatscreening indicates could cause environmentalimpacts, including assessment of thelikelihood that waste water from water supplysub-projects will tend to accumulate causingpotential public health problems;

- 171 -

ANNEX 10Page 360f 38

- Include minimum needed urban drainage worksbefore water supply expansion is undertakenin areas that have been identified in PILstudies as having potential public healthproblems associated with excessive standingwater.

8.2 Management of Environmental Aspects that could MinimiseProject Benefits

Control of degradation and development in the watersheds of theeight water supply sub-projects in Irian Jaya must be included inprovisions of the SIJUDP loan if project benefits are to bemaximised over the medium to long-term.

The responsible groups that should be involved in an integratedaction plan to manage the targeted watersheds is not clear. Thisconfusion must be eliminated, and management strategies preparedfor discussion at loan negotiation. Watershed management plansagreed to during loan negotiations should be in place by loaneffectiveness.

A "Surat Keputusan" (SK) was issued by the Governor of Irian JayaProvince that covers all of the 8 cities involved in this watersupply project. As implementation of watershed management policywill be implemented at the Kabupaten level, the Governorappointed the Bupatis to action the SK.The Watershed Management plans should include the followingelements:

Administration,* Organisation of roles for the Government

organisations involved in watershed management,under the direction of the Bupati,

* Organisation of a regular meeting schedule,* Estimation of physical and financial resources to

be mobilised (including any technical assistancethat may be required in the loan for the watersupply projects),

Planning* Development of a review process for assessing

proposed development activities in the watersheds;* Developmeuit of a watershed improvement plan

including reforestation and reeducation/extensionservices to change existing agricultural practicesharmful to the watershed into more acceptablemethods of farming,

Protection* Development of a watershed protection plan to

- 172 -

ANNEX 10Page 37 of 38

prevent illegal logging and new slash-and-burnfarming;

* Identification of soil conservation problems andcost-effective actions to be taken to reduce soilerosion in the watershed.

To achieve effective administration, planning and protection ofwatersheds, th- SK should include the following specificelements:

List of the Central and Local (primarily Tk 2, assistedwhere necessary by Tk 1) Government organisations thatshould be included in an integrated watershedmanagement plan, and their specific responsibilities inthat watershed plan;

Identification, for each of the 8 cities, of the areato be included in watershed management activities.This should be done on topographical maps;

Recommends the structural organisation of WatershedManagement Committee to be formed in each Kabupaten (itis anticipated that the Watershed Committee would havethe following positions and possible representatives),* Committee Chairman (Bappeda);* Committee Secretary (KANWIL);* Protection and Enforcement Officer (Kehutanan)* ^Agricultural Extension Officer (Pertanian)* Water Supply Authority (BPAM/PDAM)* Others as deemed necessary,

Specific witershed management activities to form thebasis of d management plan, including;* activities to prevent, and where necessary control

soil erosion (including such things asreforestation, and toil conservetion engineeringworkb);

* activities to improve catchment quality byencouraging changes in damaging agriculturalpractices (social forestry programs, intercroppingtechniques, technical agricultural extensionservices, etc);

* forest protection services, including numbers offorest guards, estimate of the frequency of neededforest patrols on a monthly basis, and exportcontrol of illegally cut logs and timber throughthe Kabupaten

* iand use planning which would lead to control of

- 173 -

ANNEX 10Page38 of 38

the type of industry and urban infrastructure thatcould be built in the controlled catchment area

9.0 Monitoring Plan

Monitoring of the Irian Jaya water supply sub-projects would bethe responsibility of Central Project Management Office. Theannual monitoring report should assess:

- whether public standpipes required to compensate forloss of in-stream flow have indeed been constructed;

- whether the public standpipas constructed to compensatefor loss of in-stream flow are correctly positioned inregard to demand placed upon them (ie are peoplerequired to walk too far to reach the publicstandpipes);

- whether waste water from expanded water supply systemsis accumulating in drains rather than running off toproper disposal;

- whether standing water attributable to waste water fromthe water supply sub-projects is causing a significantincrease in public health problems (cases of malariaand gastroenteritis could be used as indicators);

- whether the catchment protection strategies are beingimplemented, and if so, whether the strategies arehaving the desired effect on water source volume andquality.

- 174 -

ANNEX 11Page 1 of 4

INDONESIA

SULAWESI-IRIAN JAYA URBAN DEVELOPMENT PROJECT

Key Documents In Project File

A. Irian Jaya

1. Draft Inception Report: Scott and Furphy Engineers, Pty, Ltd.; December1983.

2. Draft Report on Design Criteria and Standards; Scott and Furphy EngineersPty, Ltd., PT Unisystem Utama, PT Arkonin Engineering; September 1985.

3. Draft Final Report on Water Resources Technical Notes; Scott and FurphyEngineers Pty, Ltd., PT Unisystem Utama, PT Arkonin Engineering; June1986.

4. Draft Project Preparation Report on Sulawesi-Irian Jaya Secondary CitiesIUIDP Project, Irian Jaya Water Supply Subproject; Scott and FurphyEngineers Pty Ltd., Dwyer Leslie Pty Ltd, PT Unisystem Utama, PT ArkoninEngineering; December 1987.

5. Draft Financial, Institutional and Socio-Economic Report: Overview andSummary; Scott & Furphy Engineers Pty Ltd., Dwyer Leslie Pty Ltd., PTUnisystem Utama, PT Arkonin Engineering; June 1987.

6. Draft Sanitation Report: Scott and Furphy Engineers, Pty, Ltd; PTUnisystem Utama, PT Arkonin Engineering; March 198?.

7. Manokwari Project Update for Appraisal: Scott and Furphy Engineers, Pty,Ltd.; PT Unisystem Utama; October 13, 1990.

8. Wamena Project Update for Appraisal; Scott & Furphy Pty Ltd.; PT UnisystemUtama, October 13, 1990.

9. Serui Project Update for Appraisalt Scott and Furphy Engineers, Pty, Ltd.;PT Unisystem Utama; October 13, 1990.

10. Nabire Project Update for Appraisal; Scott & Furphy Pty Ltd.; PT UnisystemUtama, October 13, 1990.

11. Fak Fak Project Update for Appraisal: Scott and Furphy Engineers, Pty,Ltd.; PT Unisystem Utama; October 13, 1990.

12. Sorong Project Update for Appraisal; Scott & Furphy Pty Ltd.; PT UnisystemUtama, October 13, 1990.

- 175 -

ANNEX 11Page 2 of 4

13. Jayapura Project Update for Appraisal: Scott and Furphy Engineers, Pty,Ltd.; PT Unisystem Utama; October 13, 1990.

14. Biak Project Update for Appraisal; Scott & Furphy Pty Ltd.; PT UnisystemUtama, October 13, 1990.

B. Sulavesi

IUIDP Sulawesi Preparation of Integrated Urban Infrastructure DevelopmentProjects for Sulawesi Region: DHV Consulting Engineers; PT Dacrea; PT Bina Asih;PT Alfacon; Sir M. MacDonald & Partners, October 1S90.

Part I: Non-Water Supply Sector Urban Investment Programe

1. Kotamadya Ujung Pandang2. Kotamadya Gorontalo3. Kabupaten Luwu4. Kabupaten/Kotif Kendari5. Kotamadya Manado6. Kabupaten Bone7. Kotamadya Bitung8. Kotif Palu9. Kotamadya Pare Pare

Part II: Water Supply Sector Urban Investment Programme

10. Kotamadya Gorontalo11. Kabupaten Luwu12. Kabupaten/Kotif Kendari13. Kotamadya Hanado14. Kabupaten Bane15. Kotamadya Bitung16. Kotif Palu

Part III: Municipal and PDAM Financing Plan

18. Kotamadya Ujung Pandang19. Kotamadya Gorontalo20. Kabupaten Luwu21. Kabupaten/Kotif Kendari22. Kotamadya Manado23. Kabupaten Bone24. Kotamadya Bitung25. Kotif Palu26. Kotamadya Pare Pare

Special Reports:

27. Water Supply Sector: Overview and Errata all towns

- 176 -

ANNEX 11Page 3 of 4

28. Economic Evaluation - Sulawesi Region.

29. Feasibility Study - Transport Report II Project Assessment and Evaluation;Project Management Unit (PMU), INDEC and Associates Ltd; Biec Int. Inc.,Indah Karya and Rennie Park, June 1990.

30. Feasibility Study - Ujung Pandang Transport Report I Transport Review andForecasts; Project Management Unit (PMU), INDEC and Associates Ltd; BiecInt. Inc., Indah Karya and Rennie Park, June 1990.

31. Feasibility Study - Ujung Pandang Road Maintenance; PMU, INDEC andAssociates Ltd; Biec Int. Inc., Indah Karya and Rennie Park, June 1990.

32. Feasibility Study - Ujung Pandang Highway Engineering; Project ManagementUnit (PMU), INDEC and Associates Ltd; Biec Int. Inc., Indah Karya andRennie Park, June 1990.

C. Technical Memoranda (in the East Java-Bali UDP Files)

1. Technical Memorandum, Water Supply, November, 1989. Directorate GeneralCipta Karya, MPW.

2. Technical Memorandum, City-Wide Drainage. November 1989. DirectorateGeneral Cipta Karya., MPW.

3. Technical Memorandum, Cost Estimating. December 1988. Directorate GeneralCipta Karya, MPW.

4. Technical Memorandum, Solid Waste Disposal, November, 1989. DirectorateGeneral Cipta Karya, MPW.

5. Technical Memorandum, Human Waste Disposal. November 1989. DirectorateGeneral Cipta Karya., MPW.

6. Technical Memorandum, Urban Roads. November 1989. Directorate GeneralCipta Karya, MPW.

7. Real Demaiil Assessment Guidelines. June 1988. Directorate General CiptaKarya, MPW.

8. East Java IUIDP Appraisal Process. February, 1989. Directorate GeneralCipta Karya., MPW.

9. Institutional Development Strategy for IUIDP Program Implementation.November 1987. Directorate General Cipta Karya, MPW.

10. IUIDP Appraisal Manual. October 1989. Directorate General Cipta Karya,MPW.

- 177 -

ANNEX 11Page 4 of 4

11. Economic Appraisal of Water Supply Projects, ECOWAT. April 1989. WorldBank Infrastructure Division, Country Department V, Asia Region.

12. Urban Roads Planning and Programming Manual. June 1989, DirectorateGeneral Bina Marga, MPW.

D. Key Aide-Memoires

13. Sulawesi-Irian Jaya Urban Development Project, Preparation Missior AideMemoire. April 19, 1990, World Bank Mission

14. Sulawesi-Irian Jaya Urban Development Project, Preappraisal Aide-Memoire.July 1, 1990, World Bank Mission.

15. Sulawesi-Irian Jaya Urban Development Project, Appraisal Aide-Memoire.November 1990, World Bank Mission.

1 r03 INDONESIA 4(1 1,-.d b, I-rr ,ssvrW %Ws ~ff -U-i, 1- ISULAWESI-IRIAN JAYA/> hrd-.,.id~b^, 1 112URBAN DEVELOPMENT PROJECT

PbIu Project TownsMAnodo

Province Headquarters>~ ° ~OBjrng Kabupoten(district) boundaries

_ 0 SIAWFSIJ1AR/k h-Al AMdH-RA Province boundaries

;Goronko W-ge( International boundaries

MonckwaliFbt3 o Sorong', 0 O"

501 AHJAlJf'.l 11NGAf .t Ohi 0 1 .o k $1Ii AWF S: ~~~~~~~~~~~ NOAH / 4bu 0 ~~~~~~~~~Serui JaY3PfS 1U A Vt-4 M If,.;U ¾I M:ooi _ .t

. ^ O PckY \ S f RA, f O Nobire aPbre-ArA Kendor Ambon W 0sS JtLAWEI SEAA',4N . l AV1F!TL Nu IGARA

>O w- t b o7 W'

0 ~~~~~~I Ujung ftndong. \ Z

c

12 r

hir'~~m'.!?,.THAILAND PHIlIPPINES

BRUNFI

PAA LA Y SI A

7' A L A Y S I A §MILES 0 100 200 30L) 400 50(SINGAPO. ' I I I I 10

z~~~~~~~~~~ I I I I I, -- _ KiLOMfFRS 0 200 400 I 'll,Z JJ1

;Po> ~~~~~~~~* 't! IA *.O AeeM.,AM,p 0 A

AUSTRALIA ?J_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __At L A3

i