World Bank

Public Disclosure Authorized
Document of
The World Bank
Report No. 15295-IND
STAFF APPRAISAL REPORT
REPUBLIC OF INDONESIA
STRATEGIC URBAN ROADS INFRASTRUCTURE PROJECT
June 4, 1996
Infrastructure Operations Division

Country Department III
East Asia and Pacific Region
CURRENCY EQUIVALENTS
(As of December 1995)
Currency Unit
$1.00
Rp I million
= Indonesia Rupiah (Rp)

= Rp 2,300
= US$ 435
WEIGHTS AND MEASURES

Metric Units
FISCAL YEAR OF BORROWER

April I - March 31
- j -
INDONESIAN WORDS AND ACRONYMS

Acronym
English
BahasaIndonesia
AADT
Annual Average Daily Traffic
Lalu Lintas Harian Rata-Rata
ADB
Asian DevelopmentBank
Bank Pembangunan
Asia
AMDAL
EnvironmentalImpact Assessment(Process)
Analisa MengenaiDampakLingkungan
ANDAL
EnvironmentalImpact Assessment(Report)
Analisa DampakLingkungan
APBD
Annual Local GovemmentDevelopmentBudget
AnggaranPendapatandan Belanja Daerah
APBN
Annual National DevelopmentBudget
AnggaranPendapatandan Belanja Negara
AWP
Annual Work Program
ProgramKerja Tahunan
BANGDA
DirectorateGeneralfor RegionalDevelopment
Direktorat JenderalPembangunan
Daerah
BAPEDAL
National EnvironmentalImpactManagementAgency
BadanPengawasan
DampakLingkungan
BAPPEDA
DevelopmentPlanningAgency
BadanPerencanaPembangunan
Daerah
BAPPENAS
National DevelopmentPlanningAgency
BadanPerencanaPembangunan
Nasional
BINKOT
Directorateof UrbanRoadDevelopment
Direktorat Bina JalanKota
BOT
Build-Operate-Transfer
Pembangunan-PengoperasianPengalihan
BPKP
Developmentand FinancialControle Board
BadanPengawasKeuangandan
Pembangunan
BUPATI
Regent/DistrictChief Executive
Bupati
CAS
Country AssistanceStrategy
KebijaksanaanBantuanNegara
DGH
DirectorateGeneralof Highways
DirekhoratJenderalBina Marga
DGHS
DirectorateGeneralfor HumanSettlement
Direktorat JenderalCipta Karya
DGLT
DirectorateGeneralof Land Transportation
Direktorat JenderalPerhubunganDarat
DKI JAKARTA
JakartaMetropolitanArea
DaerahKhusus Ibukota Jakarta
DLLAJ
RoadTraffic andTransportUnit
Dinas Lalu Lintas AngkutanJalan
DPUP
Provincial Office of Public Work
Dinas PekerjaanUmum Propinsi
DPUK
District/Municipal Office of Public Works
Dinas PekerjaanUmum
Kabupaten/Kotamadya
EA
EnvironmentalAssessment
Kajian Lingkungan
ERR
EconomicRateof Retum
Tingkat EkonomisPengembalianInvestasi
FED
Final EngineeringDesign
Perencanaan
Teknik Akhir
GDP
GrossDomesticProduct
Pendapatan
Domestik Bruto
GOI
Govemmentof Republicof Indonesia
PemerintahRepublik Indonesia
HLRIP
Heavy LoadedRoadImprovementProject(of OECF)
Proyck PeningkatanJalanUntuk Kendaraaan

Berat(OECF)
HSL2
SecondHighway SectorLoan (Ln. 3712-IND)
PinjamanSektorJalanTahan Kedua(Ln.
3712-lND)
ICB
IntemationalCompetitiveBidding
PelelangandenganProsedurIntemasional
j;
Acronym
English
BahasaIndonesia
INPRES
PresidentialInstruction, a centralgovemmentgrant programto

local govemment
InstruksiPresident
IRI
Intemational RoughnessIndex
Indeks KekasaranJalan
IRMS
IntegratedRoadManagementSystem
Sistim ManajemenJalanTerpadu
IUDP
IntegratedUrbanDevelopmentProgram
ProgramPembangunanKota Terpadu
IUIDP
IntegratedUrbanInfrastructureDevelopmentProject
Proyck Pembangunan
PrasaranaKota
Terpadu
IWG
InterministerialWorking Group
Kelompok Kerja Antar Departemen
JABOTABEK
Region comprisingJakarta,Bogor, Tangerangand Bekasi
Jakarta,Bogor, Tangerang,Bekasi
JASA MARGA
IndonesiaToll Road Corporation
P.T. JasaMarga (Persero)
JUDP-3
Third JABOTABEK UrbanDevelopmentProject(Ln. 3246IND)
ProyekPembangunan
JabotabekIll
JUKLAK
ImplementationGuidelines
PetunjukPelaksanaan
KABUPATEN
Regency/District(Level 11autonomouslocal government)
Kabupaten
KEPRES
PresidentialDecree
KeputusanPresident
KIP
Kampung(Neighborhood)ImprovementProgram
ProgramPerbaikanKampung
KOTAMADYA
IncorporatedMunicipality/City (Level 11autonomouslocal

government)
Kotamadya
LIDAP
Local Institutional DevelopmentAction Plan
RancanganKegiatan Pengembangan
Institusi
PemerintahDaerah
LTDP-II
LandTransportDevelopmentProject- Phase11
ProyekPengembangan
PerhubunganDarat
Tahap11
MHA
Ministry of HomeAffairs
DepartemenDalam Negeri
MOC
Ministry of Communications
DepartemenPerhubungan
MOF
Ministry of Finance
DepartemenKeuangan
MPW
Ministry of PublicWVorks
DepartemenPekerjaanUmum
NCB
National CompetitiveBidding
PelelangandenganProsedurNasional/ Lokal
NJ(T)C
North Java(Transport)Corridor
Koridor TransportasiPantai UtaraJawa
NMT
Non Motorized Transport
AngkutandenganKendaraanTidak Bermotor
NPV
Net PresentValue
Nilai Bersih SaatIni
O&M
Operations& Maintenance
OperasidanPemeliharaan
OECF
OverseasEconomicCooperationFundof Japan
DanaKerjasamaEkonomiLuar Negeri Jepang
OED
OperationsEvaluation Department
BagianEvaluasiOperasi
PAP
ProjectAffected Person
Orangyang terkenaDampakProyek
PIM
ProjectImplementationMemorandum
Nota Pelaksanaan
Proyek
PJM
Medium-termExpenditureProgram
ProgramJangkaMenengah
PMU
ProjectManagementUnit
Unit ManajemenProyek
pPBS
Planning,Programmingand BudgetingSystem
Sistim Perancangan,
Pemogramandan
Penganggaran
111-
Acronym
English
Bahasa Indonesia
PSAP
Policy Statement and Action Plan
Rumusan Kebijaksanaan dan Rancangan

Kegiatan
PUOD
Directorate General for Public Administration and Regional

Autonomy
Pemerintah Umum dan Otonomi Daerah
RBO
Regional Betterment Office
Proyck Perencanaan dan Pengawasan Teknis

PeningkatanJalan
RCUTP
Regional Cities Urban Transport Project (Ln. 2817-IND)
Proyek Transportasi Kota
RDA
Regional Development Area
Wilayah Pengembangan Regional
REPELITA
Five Year Development Plan
Rencana Pembangunan Lima Tahun
RIAP
Revenue Improvement Action Plan
Rencana Kegiatan Untuk Peningkatan

Pendapatan
RIDPD
Road Improvement and Development Projects Database
Kumpulan Data Dasar Proyek Peningkatan

dan Pembangunan Jalan
ROW
Right of Way
Daerah Milik Jalan
SK
Decree of a Senior Official
Surat Keputusan
SOE
Statement of Expenditure
Statement of Expenditure (no Indonesian

sentence)
SURIP
Strategic Urban Roads Infrastructure Project
Proyek Prasarana Jalan Kota Yang Bersifat

Strategis
TA
Technical Assistance
Bantuan Teknis
TKPP
Urban Development Coordination Team
Tim Koordinasi Pembangunan Perkotaan
TOR
Terms of Reference
Kerangka Acuan Kerja
UKL
Environmental Management Plan
Upaya Kelola Lingkungan
UPL
Environment Monitoring Plan
Upaya Pemantauan Lingkungan
URMS
Urban Road Management System
Sistim Manajemen Jalan Kota
VOC
Vehicle Operating Costs
Biaya Operasi Kendaraan
WALIKOTA
Municipal Chief Executive
Walikota
lv
STAFF APPRAISALREPORT
LOANANDPROJECTSUMMARY
Borrower:
Republicof Indonesia
Implementing
Agencies:
The National DevelopmentPlanning Agency(BAPPENAS)has overall responsibility

for projectcoordination.TheDirectorateGeneralof Highways(DGH)in the Ministry
of PublicWorks is the ExecutingAgency. The Directorateof Urban Road
Development(BINKOT)of DGH is the lead implementingagency. TheDirectorate
Generalof Land Transport(DGLT)of the Ministryof Communications,the local
governmentdistrictsof Cirebon,Demak,Kendal,Kudus and Pemalang,and the local
governmentincorporatedmunicipalitiesof Cirebon,Pekalonganand Semarangare
implementingagencies. The Ministryof Home Affairsis assisting in the
implementation.
Beneflciaries:
Road users of the North Java TransportCorridor between Jakarta and Surabaya,and
residents of the towns of Cirebon, Pemalang,Weleri, Kaliwungu,Semarang,Demak
and Kudus.
Poverty:
Not applicable
Amount:
US$86.9million
Terms:
Standardamortizationterm, grace period and interest rate for fixed-rate US Dollar

single currencyloanswith an expecteddisbursementperiodof 3-6 years.
Commitment
Fee:
0.75% on undisbursed loanbalances,beginning60 days after signing,

less any waiver
Onlending
Terms:
Not applicable
FinancingPlan:
See Table4.3
EconomicRate
of Return:
ERRs for identifiedsubprojectsrangebetween15 %to 30%.
MOP:
ReportnumberP-6793-IND
Map:
IBRD27993
Project ID:
ID-PE-4016
- v
TABLE OF CONTENTS
1. URBANTRANSPORT SECTOR...................................................
B. URBAN
DEVELOPMENT
....................................................
C. TRANSPORT
TRENDS
...................................................
FRAMEWORK
..................................................
D. INSTITUTIONAL
E. THEROADNETWORK
...................................................
F. GOVERNMENT
URBANSTRATEGY
...................................................
G.GOVERNMENT
TRANSPORT
POLICIES
...................................................
2
3
5
6
7
2. BANK INVOLVEMENTANDLESSONSLEARNED..................................................
10
A. PASTINVOLVEMENT
..................................................
B. PORTFOLIO
PERFORMANCE
..................................................
C. LESSONS
LEARNED
..................................................
10
10
E. RATIONALE
FORBANKINVOLVEMENT
..................................................
13
3. THE NORTH JAVA CORRIDOR..................................................
14
A. URBAN
DEVELOPMENT
..................................................
14
14
15
16
18
B.
C.
D.
E.
11
OVERALL
TRANSPORT
DEMAND
..................................................
ROADTRANSPORT
NETWORK
..................................................
JAVATRAFFIC
CHARACTER
..................................................
CURRENT
ANDEMERGING
ISSUES
..................................................
4. THE PROJECT.......................................................
,,,,,19
A. PROJECT
ORIGIN
ANDFORMULATION
..................................................
19
B. OBJECTIVES
.........................
20
C. MONITORING
PROJECT
OUTCOMES
..................................................
D. PROJECT
DESCRIPTION
..................................................
E. ENVIRONMENTAL
CONSIDERATIONS
..................................................
F. LANDACQUISITION,
RESETTLEMENT
ANDSOCIAL
CONSIDERATIONS
..................................................
G. PROJECT
COSTS
...................................................
20
21
24
25
26
H. FINANCING..........................
26
5. PROJECT IMPLEMENTATION..................................................
29
A. IMPLEMENTING
AGENCIES
..................................................
.
B. IMPLEMENTATION
PROGRAM
.................................................. .
C. PROJECT
MANAGEMENT
.......................
.......
D. IMPLEMENTATION
SCHEDULE
.......
E. PROCUREMENT
F.DISBURSEMENTS..33 .................................................................
29
29
30............................
30
31
32
,, 35
G. FINANCIAL
MANAGEMENT..35
H. PROJECTMONITORING..35
J. OPERATIONS
ANDMAINTENANCE
........................
K. BANKSUPERVISION
...............
37
3......7...........,
37
- vi -
6. PROJECT JUSTIFICATION AND RISKS .........................................................

39
A. POLICYCONTEXT....................................................................
B. ECONOMICJUSTIFICATION
....................................................................
C. SUSTAINABILITY
...................................................................
D. RISKS....................................................................
39
39
43
43
7. AGREEMENTS REACHED AND RECOMMENDATION ..............................................

45
TABLES IN TEXT
TABLE 3.1: DEMANDFOR INTERURBANTRANSPORT,JAVA, 1982 - 1991.....................................................
TABLE3.2: TRAFFICCOMPOSITION,CENTRALJAVA 1994 (PERCENT)....................................................
TABLE3.3: NORTHJAVATRANSPORTCORRiDOR(1991) ....................................................
ORIGIN/DESTINATION
OF TRAFFICIN CENTRALJAVA SECTION....................................................
TABLE4.1:
TABLE 4.2:
TABLE4.3:
TABLE5.1:
TABLE 5.2:
TABLE5.3:
TABLE 5.4:
TABLE6.1:
......... 15
PROJECTOUTCOMEINDICATORS
....................................................
PROJECT COST SUMMARY ....................................................
PROJECTFINANCINGPLAN....................................................
PROCUREMENTARRANGEMENTS
....................................................
DISBURSEMENTS
....................................................
ESTIMATEDIBRD DISBURSEMENTSBY IBRD FY....................................................
PROJECTOUTPUT INDICATORS
.....................................................
SUMMARYOF ECONOMICANALYSIS....................................................
17
17
20
21
27
28
33
34
34
38
41
ANNEXES .................................................................................................................................................................. 47
1. URBAN INFRASTRUCTURE
AND ROAD PROJECTS...................................................................
49
2. PERFORMANCE INDICATORS ...................................................................
50
3. COMPONENTA: SCHEMEDETAILS.....................................................................
52
4. COMPONENTA: SURIP ROAD DESIGNSTANDARDSAND GUIDELINES................................................................
61
5. COMPONENTA: CRITERIAFOR APPROVALOF ROAD SCHEMESUB-PROJECTSFORFUNDING............................... 65
6. COMPONENTB: URBAN MANAGEMENTANDQUALITYOF LIFE IMPROVEMENTS
.................................................. 66
7. OUTLINESCOPEOF POLICIES,PROCEDURESANDGUIDELINES....................................................................
71
8.. ENVIRONMENTALIMPACTASSESSMENT.72
9. PROJECTCOMPONENTSAND COST SUMMARY
..............................................................
74
10. DRAFTMODEL PROJECTIMPLEMENTATION
MEMORANDUM
...............................................................
77
11. OUTLINEOF ANNUALWORK PROGRAM..............................................................
84
12. PROCUREMENTPACKAGINGAND PRIOR REVIEWCONTRACTPROFILE.............................................................. 85
13. DISBURSEMENTS
..............................................................
86
14. SUPERVISIONSTAFFINGANDSCHEDULE................................................................................................................
88
15. ECoNoMiC ANALYSIS.8
.
.
.
.9...
. . ..................................................
89
16. DOCUMENTSONFILE.......................................................
97
MAP
STRATEGIC URBAN ROADS INFRASTRUCTURE PROJECT - NORTH JAWA CORRIDOR (MAP No IBRD 27993)
This report is based on the findings of an appraisal mission which visited Indonesia between November 30 and
December 14, 1995 comprising Edward Dotson, Urban Transport SpecialisVTask Manager EA31N, and Koji
Tsunokawa
Highway Engineer TWUTD, Suhadi Hadiwinoto (Resettlement
Specialist) and Robert Scouller
(Implementation
Engineer) from RSI Jakarta, and consultants Stewart Joy (Transport Economist),
Doug Martin
Environmental
Specialist), and Phil Sayeg (Transport Planner).
Ms. Marianne
Mr. Anupam Khanna, Division Chief, EA31N, have endorsed the project.
Haug, Director,
EA3, and
1.
URBAN TRANSPORT SECTOR

A. BACKGROUND
1.1
Economic Development. Over the past ten years, the Indonesian economy has grown at more
than 6% per annum with growth in the past five years being slightly higher at close to 7%. Non-oil
manufacturing has provided the engine of growth with an average annual growth rate of 11.5% per
annum. In the process, the share of manufacturing in GDP increased from 14.6% in 1984 to 23.9% in
1994 while that of agriculture declined from 22.7% to 17.4% over the same period. Growth was most
rapid in provinces with a strong manufacturing base oriented towards exports, i.e. DKI Jakarta and West
and East Java. This is reflected clearly in the ports of Jakarta and Surabaya, which registered a doubling
in container traffic in less than four years. Under the Sixth Five Year Development Plan (REPELITA VI:
1994/95 - 1998/99) GDP is projected to grow at 6.2% per annum with the population growing at 1.6%
per annum. Non-oil exports are expected to continue driving the economy, in particular exports based on
industrial capital and human resources.
1.2
Demographic Trends. During the 1980s, Indonesia experienced one of the highest urban
growth rates in East Asia. Urban population increased from 33 million (22% of total population) to 55
million (31% of total population) between the censuses of 1980 and 1990. The urban population is
growing at over 5% per year - almost three times the overall national population growth rate. Indonesia
includes 15 large cities of more than 500,000 people, 40 secondary cities of over 100,000 (provincial
headquarters and incorporated municipalities), 200 towns of over 20,000 (district headquarters), and
about 3,200 service centers (subdistrict headquarters) with 3,000 to 20,000 people. Seven of Indonesia's
ten largest metropolitan areas are on Java. Current forecasts estimate an urban population of some 80
million or 40% of the total population in the year 2000. Outside the Jakarta metropolitan region, which
already has over II million people, 13 cities are forecast to have populations over I million, while
another II are forecast to have populations of over 500,000.
B. URBAN DEVELOPMENT
1.3
Urban Infrastructure Issues. Average incomes in urban areas have risen substantially over the
past decade. However, income distribution remains relatively unequal. In 1990, more that 17% of
Indonesian urban dwellers were estimated to be in "absolute poverty" based on their expenditure levels.
The problems of low income are exacerbated by deficiencies in basic services and degraded
environmental conditions. Only about 20-25% of urban households have direct access to piped water
supply, another 15% buy drinking water from vendors or standposts, and the rest rely on shallow wells
and sometimes on surface water courses. These are generally polluted due to inadequately treated
wastewater. Only about 40% of urban households have access to adequate sanitation facilities. In the
larger cities, inadequate water supply and liquid and solid waste disposal are serious problems.
2-
Staff Appraisal Report
1.4
Urban Infrastructure Constraints and Priorities. Urban areas in Indonesia face the following
essential constraints: (a) lack of coordination in integrating infrastructure investments with land
management and transport objectives; (b) no administrative status for local governments, other than the
largest cities (Kotamadya); (c) weak management of water enterprises; (d) poor financial management
systems (deficient accounting practices, inadequate cost recovery, weak revenue generation, and poor
information systems); (e) inefficient programming of design and construction cycles, often compressed
into single fiscal years; (f) complex relationships among local, provincial and central agencies with
respect to responsibilities for project and program preparation, appraisal, financing, implementation, and
O&M; (g) a shortage of trained and experienced managers and technical personnel; and (h)
infrastructure deficiencies and backlogs in operations and maintenance (O&M). All of these except (c)
and (d) also apply to urban roads. The Bank's 1993 Urban Public Infrastructure Services Report (No.
12154-IND) estimated that the 1990 infrastructure investment backlog was at least some US$5 billion for
the main five subsectors (piped water, sanitation, solid waste, urban roads, and drainage). Further, a
substantial backlog prevails in the maintenance of facilities, which has resulted in decreased productivity
of previous infrastructure investments.
C. TRANSPORTTRENDS
1.5
Motorization. The economic development during the past decade has encouraged the ownership
and use of private vehicles and increased travel. The motorized vehicle fleet more than doubled in the
1980s in line with urban population growth. In 1989, 29% of urban households owned a motorized
vehicle, (around 3/4 of which were motorcycles) and 35% a nonmotorized vehicle. Motorcycles make
up almost 70% of the total motorized vehicle fleet, cars 15%, trucks and buses 15%.
1.6
With an average motor vehicle availability (excluding motorcycles) of 19 vehicles per 1000
population Indonesia is still in the early stages of motorization. But differences in motorization between
regions in Indonesia are marked (ranging from 23/1000 pop. for Java and Bali to 6/1000 pop. for Nusa
Tenggara). The differences between provinces are even more pronounced. In the Jakarta metropolitan
area, for example, vehicle availability at 150/1000 pop. is comparable to that in some of the more
developed countries in East Asia.
1.7
Based on the key determinants of income levels, income distribution and cost of ownership and
use, international experience suggests that nationally Indonesia is not expected to reach the exponential
growth phase of motorization in the short termn. However as incomes and cities continue to grow at high
rates, the motorized fleet will continue to increase, with cars gaining in share. The physical expansion of
cities has increased journey length and the demand for motorized travel. The numbers of vehicles and
traffic volumes are therefore expected to grow in and around urban centers, increasing demands on
transport systems and posing challenges for expansion of road network capacity.
1.8
Transport Activity. The strong growth in non-oil manufacturing was accompanied by rapid
growth in transport activity which increased by close to 7% per year over the past ten years. All
transport modes - road, rail, shipping, civil aviation, and inland waterways - were affected. In general,
the modes are complementary with each serving specific markets or transport needs. Competition
arnong them is limited to a few corridors. Sea transport moves large quantities of freight, mainlybulkoil
and coal carried by the oil and coal industries. General cargo movements by sea are comparatively
small, the predominant flows being between Java and the outer islands with Jakarta and Surabaya as the
focal points.
3_
1.9
For interurban transport of both passengers and freight by land, road is by far the dominant
mode. Interurban domestic freight movements (ton/km) grew by around 60% on Java and Sumatra
between 1982 and 1991. While data are not available on journey times, congestion and capacity
constraints are emerging in heavily trafficked corridors and are very visible in North Java. In particular
in 1992 it was estimated that of the total of 47 billion vehicle/km on national and provincial roads about
50% was in Java and Bali (which account for only 22% of the network). Average daily traffic has grown
rapidly since the early 1970s, ranging between 5% and 10% p.a. depending on the area. In recent years,
traffic growth as recorded by the annual traffic counting system has leveled off to about 5% on average.
Growth has been most dramatic on the approaches to the main urban centers and in particular on the high
capacity, limited access tolled roads approaching Jakarta (where annual growth of 15% to 30% has been
observed over the past five years).
D. INSTITUTIONALFRAMEWORK
1.10 Central Government. There is no single ministry responsible for urban development and no
single agency responsible for urban transport. The National Development Planning Agency,
BAPPENAS, is responsible for overall planning and allocation of resources, focused within REPELITA
and Annual National Development Budgets (APBN). Within BAPPENAS, the Bureau for Urban
Development, Settlement and Public Housing, under Deputy V (Regional and Provincial Development),
is responsible for oversight and coordination of urban infrastructure development. Major road
development is the responsibility of Deputy III (Infrastructure).
1.11 The principal central ministries involved in urban transport are the Ministry of Home Affairs
(MHA), the Ministry of Public Works (MPW), the Ministry of Transport (MOT), and the Ministry of
Finance (MOF). The MHA is responsible for oversight of the regional governments, primarily through
its Directorate General for Public Administration and Regional Autonomy (PUOD) and Directorate
General for Regional Development (BANGDA). The MPW (or DPU) is responsible for oversight of
most infrastructure. Within MPW, the Directorate General for Human Settlements (DGHS or Cipta
Karya) is responsible for oversight of city and regional planning, while the Directorate General of
Highways (DGH or Bina Marga) is responsible for oversight of roads and bridges. The MOF is
responsible for central and local finance; the Directorate General for Budget (Anggaran or DGA)
administers budget transfers. Within MOT, the Directorate General of Land Transport (DGLT) has
overall responsibility for road traffic and transport matters.
1.12 Regional Government. There are 27 provincial (TK I) and 304 local (TK II) govenmments
which operate with increasing responsibilities and delegated authority. The 304 local governments
include 57 kotamadyas (urban municipalities) and 247 kabupatens (districts). Legislative powers at both
provincial and local levels are held by elected People's Representative Councils (Dewan Perwakilan
Rakyat Daerah).
1.13 Under Indonesia's unitary system of govermnent, all units of regional govemment are overseen
by the Ministry of Home Affairs. Provincial governments are headed by appointed governors who
represent the President and the central govemment. The govemors also head the semi-autonomous
provincial administrations. Walikotas (municipal mayors) and Bupatis (district heads) represent
provincial governments, and head their own local governments. Development Planning Agencies
(BAPPEDA I and II) report directly to their respective governors, mayors, or district heads and are
responsible for planning and resource allocation. Govemment services at TkI and TkII are provided by
separate departments (Dinas I and II) analogous to line ministries of the central government.
Strategic Urban Roads infrastructure Project
- 4 -
StaffAppraisal Report
1.14 Finances of provincial and local governments have long been dominated by central government
transfers and are characterized by weak local resource mobilization, low per-capita budgets and limited
use of credit for capital investment. Grants and other revenue sharing mechanisms used by GOI are
being used to resolve the disparity between increasingly decentralized service responsibilities and local
resource mobilization. Restructuring of central-local government financial relationships and improved
fiscal capacities for local governments in Indonesia are topics of on-going policy dialogue which are
gaining increased urgency as growth in urban services requirements outpace local capacities to respond.
Local government borrowing capacities are generally quite limited and incentives to borrow are weak in
the current financing pattern although some capable local governments are willing to accelerate their
development program by borrowing.
1.15 Urban and Regional Planning. GOI has a National Structure Plan (Strategi Nasional
Pengembangan Pola Tata Ruang), which includes the regional planning goals for particular areas.
Provincial structure plans incorporate the concept of Regional Development Areas (RDAs) which appear
to be purely conceptual. Local urban plans in Indonesia may be developed through several avenues,
which may lead to inconsistent local plans and uncoordinated road projects. Provincial governments
produce and local governments contribute to Guidelines of Provincial Policy, (Pola Dasar Pembangunan
Daerah) often the basis for land use and development within urban areas. Local governments through
their planning units (Bappeda Tk II) prepare, often in conjunction with IUIDP/IUDP projects, broad
structure plans for the area of their responsibility. These plans indicate in a broad way desired future
road, public transport and other infrastructure. Local governments also control building approvals and
may have local regulations (Perda), for example, for imposing setbacks on buildings from roads and
controls on access to roads.
1.16 Highways. DGH is the central authority with overall responsibility for the development and
maintenance of the nation's highways. However, there is an ongoing process of decentralization of
central government functions to provincial and kabupaten/kotamadya governments. In broad terms the
focus of DGH's responsibilities is on the overall planning and monitoring while at the lower-tier road
agencies the focus of responsibilities is on implementation.
1.17 Since August 1994, DGH has had six directorates reporting to the Director General, three of
which are responsible for planning, design and urban roads respectively, and three of which are regional
directorates responsible for implementation. The Directorate of Urban Road Development (BINKOT) is
composed of five sub-directorates. Two are responsible for road development and design respectively,
and two for implementation in metropolitan and large cities. A fifth sub-directorate is responsible for the
planning of all toll roads, whether urban or inter-urban.
1.18 Urban Roads. Primary arterial roads in urban areas are included in the national road network
and are managed centrally through DGH and expenditures are programmed through the Integrated Road
Management System (IRMS) system as for National and Provincial roads. (Primary arterial roads
provide links between provincial (level 1) cities or between these cities and the Level 11cities). All other
urban roads are the responsibility of the municipal government (Level II) with technical guidance from
DGH. Design and construction standards, and cost estimations are based on the DGH guidelines. Some
guidelines on road planning, and the programming of operations and maintenance (O&M) expenditures
have been developed with Bank support. Guidance on economic evaluation for projects is given in a
DGH manual. The larger road projects are still often financed directly from the national budget
(APBN/DIP) with design and supervision by the Regional Betterment Offices (RBO) of Bina Marga.
5-
However responsibility for land acquisition of these projects rests with local government and can lead to
financial obligations which the local governments are not capable of meeting without special assistance.
1.19 Until now, systematic surveying and expenditure programming of the urban networks has not
been formalized. An Urban Road Management System (URMS) to aid municipalities in this function,
initially for maintenance expenditures, is under development by DGH through the HSL2 project. Apart
from central statistics on the roads, the first forrnal inventory of urban roads in 306 cities of over 20,000
population was conducted in 1993. The most urgent problems relate to traffic congestion which is severe
on 36% of urban arterial and collector roads so that capacity expansion and traffic management are key
policy aspects requiring attention.
1.20 Urban Traftic and Transport. Within MOT, the Directorate General of Land Transport
(DGLT) has overall responsibility for road traffic and transport matters. It comprises three directorates:
Infrastructure Systems Development, Traffic and Transport, and Safety and Engineering. Each of these
three directorates includes at least one sub-directorate dealing with road-related matters. Safety and
environmental matters for all land transport modes are handled by a single sub-directorate of safety.
This functional organization structure has not proven very effective and changes are under consideration,
including creating a section for urban traffic and transport.
1.21
In principle the role of bGLT at the center should be focused on policy formulation and
coordination with all executing functions delegated to decentralized entities. MOT's regional
organization is based on a single office (Kanwil) in each province dealing with all transport modes. Each
Kanwil has at least one section handling land transport matters. DLLAJ, coming under the provincial
administration are responsible for, among other things, traffic signs and signals, motor vehicle
inspection, vehicle weight and dimensions, have existed for a number of years in the larger provinces and
are gradually being established throughout the country.
1.22 Enforcement of road traffic and transport regulations is divided between the DLLAJ and the
Traffic Police. The enactment in 1992 of a modern Road Traffic and Transport Law (Law 14) followed
by the main implementing regulations in 1993 represented a major milestone. These regulations
provided for the establishment of local government DLLAJ nationally, with responsibilities including
urban transport planning, road and public transport network planning, and traffic management.
Implementation has remained slow, with only three DLLAJs established by the end of 1995 in Java.
E. THE ROAD NETWORK
1.23 Past Development. In line with economic growth, Indonesia's classified road network has
expanded rapidly in the past 25 years, from 82,125 km in 1969 at the start of the five-year plans, to
244,164 km in 1994 at the end of REPELITA V. The urban road network more than doubled in length
during the 1980s. Road length has been increasing in line with the overall increase in the vehicle fleet,
and the numbers of urban households. Urban road length at around 25,500 kms is around 11% of the
total road length in Indonesia. They are carrying 44% of the 47 billion motorized vehicle kilometers of
annual travel. Of all urban roads 3772 kms or 15% are national primary roads.
1.24 The road networks in Indonesian cities are typically of low density (road km per capita) and are
becoming increasingly congested especially on Java. In considering road capacity it is important to note
that the majority of the roads are of low geometric standard, i.e. less than 7m wide. In addition, there is
extensive frontage development along main roads from towns and cities continuing for many kilometers.
6-
Frontage development reduces traffic speed and lowers road capacity as a result of traffic entering and
leaving the road, parked vehicles, pedestrians, and bicycles.
1.25 Future Requirements. Analysis of road capacity and traffic flow for the national and provincial
network indicates that a growing number of road sections are near capacity. As detailed in the recent
Roads Sector Study (Report no. 15394-IND), expansion of road capacity by small widenings of roads is
probably inappropriate. However new larger road investments needed require much longer preparation
times, typically on the order of three to five years, than has been the case for the traditional smaller
betterment investments. This results from the requirements for more elaborate planning; feasibility
studies including full analysis of options; the assessment of environmental and social impacts and
preparation of a mitigation action plan; land acquisition; resettlement; and greater coordination and
collaboration within GOI agencies.
1.26 In 1994, 22% of the interurban network and 58% of the urban network had congestion sufficient
to warrant consideration of widening. In order to offset the costs of such congestion it is estimated that
in the decade 1995-2004, some capacity expansion could be economically warranted for up to 28,000 km
(45%) of national and provincial roads and 4,500 km (34%) of urban roads. Expansion opportunities on
urban roads are limited by the much higher costs of land acquisition and by planning and social
constraints.
Therefore, capacity expansion has to include an effective combination of traffic
management, road widening, new roads and bypasses.
1.27 Funding. The higher levels of expenditure required for capacity expansion of the interurban and
urban networks (and reconstruction Kabupaten roads) could be achieved through reallocation of public
resources between different categories of road and programs for efficiency improvements. Provided a
suitable regulatory framework is in place, private sector resources could also be mobilized for some
bankable projects mostly on Java. Furthermore, there are considerable opportunities for more efficient
implementation of programs. Factoring in resource and implementation capacity constraints, a 10%
increase in overall road funding for capacity expansion is recommended in the Road Sector Study.
F. GOVERNMENTURBANSTRATEGY
1.28 For the 1990s, the key elements of GOI's development strategy are (i) maintaining growth and
macroeconomics stability; (ii) improving public sector management; (iii) enhancing private sector
development; (iv) reducing poverty and enhancing human resource development; and (v) improving
environmental management. Investment in transport is a part of the GOI strategy to help foster the
attainment of its objectives by providing adequate infrastructure. In its successive REPELITAs, the GOI
has devoted significant resources to improving transport infrastructure. Outlays for maintenance were
increased in order to sustain the quality and productivity of the transport.
1.29 Facing large deficiencies in urban infrastructure and a fast-growing urban population, in 1987,
GOI issued a Statement of Policies, representing a consolidated view of development in the sector. It
includes: (a) strengthening local governments to build, operate and maintain local services;
(b) improving the planning and programming of urban infrastructure investments; (c) mobilizing local
revenues and optimizing their use; (d) implementing coordinated financing and administration systems
for local services; and (e) strengthening consultative processes at various levels of government,
particularly the participation of municipalities and districts.
1.30 The Policy Statement called for Integrated Urban Infrastructure Development Programs (IUIDP)
as the operational approach for achieving the above objectives. These comprised action plans for local
institutional strengthening (Local Institutional Development Action Plan or LIDAP), improvements in
local resource mobilization (Revenue Improvement Action Plans or RIAP), and medium-terrn
expenditure programs (PJM), and financing arrangements. The World Bank, ADB and bilateral donors
have supported GOI in a nation-wide program for IUIDP preparation and implementation since 1987.
More than 75% of local governments have so far adopted the IUIDP approach.
1.31 REPELITA VI and the second 25-Year Plan, both of which started in April 1994, emphasize
sustainable urban development With goals of improved quality of life, increased urban productivity,
poverty alleviation, and reduction of regional imbalances. The main objective to meet these goals is to
address the backlog in the provision of basic urban services. Infrastructure to support economic
development is considered to be crucial. Management of land as a strategic resource, including effective
development control, is seen as important as investment in infrastructure. The Strategy to achieve these
goals includes effective institutional development (clarification of roles and responsibilities,
management systems, Planning, Programming and Budgeting Systems (PPBS), and human resource
development), clarification of the legal framework for decentralization, and resource mobilization,
including private sector and community participation. REPELITA VI also expands the IUIDP approach
into an Integrated Urban Development Program (IUIDP) that includes, amongst other things, broader
spatial and urban planning in addition to public works infrastructure development plans.
1.32 An important GOI objective for the infrastructure sector in REPELITA VI is to enhance the role
of the private sector in the provision of public services which is a growing phenomenon in East Asia.
Bank advice has been sought in three areas, namely shifting the appropriate balance between public and
private roles; developing sector policy and regulatory framework; and analyzing financial (including
debt) implications. The Bank has helped prepare framework papers for private participation in power,
ports and solid waste management. Workshops for central and regional government officials have been
organized in these sectors as well as water supply where GOI is seeking to involve private operations
both in operation and financing but progress has been slow to-date.
G. GOVERNMENT TRANSPORT POLICIES
1.33 Policy Statement and Action Plan (PSAP) on Road Infrastructure. Following a review of
past policies, and recommendation of a number of studies, the GOI prepared in 1989 a comprehensive
Policy Statement and Action Plan (PSAP) on Road Infrastructure and Road Traffic and Transport. The
Policy Statement covered seven main areas: legal and regulatory reform; institutional development and
coordination; integration of transport sector policy formulation and planning; planning, programming,
and execution of road works; road user taxation; vehicle weight and dimension limits; traffic safety.
Specific actions to be taken during the period 1990-1992 are focused primarily on interurban transport
and were included in the Stage I Action Plan, which was supported by the Highway Sector Project (Loan
3133-IND). The Stage II Action Plan covering the period 1993-1996 is supported by the Bank's Second
Highway Sector Investment Project (HSL 2, Loan-3945-IND). Further details of the PSAP are available
in Annex 2 of the HSL 2 SAR (Report no. 12161-IND).
1.34 Cost Recovery. Under its Road Traffic and Transport PSAP of 1989, GOI adopted a "user
pays" approach to charging for road use. Nationwide, an aggregate cost recovery factor of 1.13 was
achieved by 1994/95 through a combination of fuel prices increases, a restructuring of the annual vehicle
registration fee, increases in the fee for commercial vehicles, and a start to phasing out of the ownership
8-
transfertax. Aggregateroad expendituresare recoveredfrom all vehiclecategoriescombined. However,

when cost recovery is considered by individualcategorythe picture remains unbalancedas more than
three-quartersof tax receipts still accrue from small gasoline-enginedvehicles. Taxes on trucks which
cause most of the road damage and require the constructionof strong road pavementsremain marginal.
The annual registrationfee ratherthan encouraginggreaterefficiencyin the road transportsystem, is still
to a certainextent penalizingvehicletypes which cause less damagebut morecongestion.
1.35
Urban Roads. There is no singledocument that sets out current GOI polices for urban roads.
However a good understanding can be obtained from the Policy Statement for Urban Development
(1987), the Policy Statement and Action Plans on Road Infrastructure and Road Traffic and Transport,
and statements on the urban sector and urban transport in REPELITA VI. More specific Government
strategy in relation to urban roads is set out in the Ministry of Communications' (MOT) elaboration of
REPELITA VI.
1.36 Policy development and implementation for broader urban transport issues have been limited in
Indonesia. This results from fragmentation of institutional responsibilities, a general lack of
coordination within central government, and inadequate responsibility and strength to deal with
financing and implementation of urban transport policy and projects across all modes within local
governments (even DKI Jakarta). Despite the current lack of a coherent action plan for urban transport,
many useful but isolated initiatives are under way. A most useful initiative is the recent creation in
BAPPENAS of an Interministerial Working Group (IWG) to analyze urban transport policy and to
develop by mid 1997 an urban transport policy to be included in urban policy being prepared for the
period of REPELITA VII.
1.37 Toll Roads. GOI initiated a policy of developing a network of high capacity limited access
motorways through toll revenues in the late 1970s. The first toll road was opened to traffic in 1978 and
in the same year Jasa Marga, the state toll road corporation, was established as the sole entity to
construct and operate toll roads and given authority to raise funds by public bond issues. The key
principles underlying the Government's toll road policy have been that:
*
*
*
road facilities in the more developed parts of the country can be financed through
contributions from road users (justification on equity grounds);
a free alternative road has to be available to road users; and
toll rates shall not be higher than 70% of the savings road users gain from traveling on the
toll road.
1.38 Between 1978 and 1990 some 280 km of toll roads and three tolled bridges were opened to
traffic. These facilities were concentrated in the Jakarta area in the form of urban express ways and
roads radiating from Jakarta. Jasa Marga's sources of funds for these investments consisted of bond
issues on the domestic market, foreign loans arranged by the government and toll revenues. Loan
financing took the form of loans from international development agencies (including the Bank) to GOI
that were onlent to Jasa Marga.
1.39 Private Sector Participation in Toll Roads. Private participation is sought in areas of high
growth where private investment is economically and financially feasible. The main stated policy
objective on private participation in toll roads is to obtain additional funding. References were also
made to faster procurementand implementation.By regulation(No 8 of 1990)all private investmentin

toll roads is to be in the form of cooperationwith Jasa Marga. The suggested form of cooperationis a
joint venture or joint operation which are GOI's selected forms of cooperation or "working together"
with the private sector. To implement the policy, an administrative procedure - involving DGH, the Toll
Road Corporation, and the Ministry of Finance - for discussing and negotiating agreements with private
parties was established. Implementation of the policy, however, was not formulated in detail, and it
proceeded on an ad-hoc basis. A revised - but still not well codified - procedure was instituted in early
1995 for the implementation of a new program of private participation in toll roads under the current five
year plan.
1.40 By mid- 1995 some 200 km of toll roads involving private sector parties had been completed or
were under construction. Total financing for toll road schemes involving private participation over the
period 1990/94 is estimated at some US$555 million or about 5% of the US$11.4 billion of GOI
financing for all public roads combined over the same period. Under REPELITA VI the government is
seeking a contribution of US$3.1 billion from the private sector for toll road financing.
2.
10
BANK INVOLVEMENT
AND LESSONS LEARNED
A. PAST INVOLVEMENT
2.1
The Bank has a long standingassociationwith GOI, in the urban and urban transportsectors. In
the mid 1980sthe Bank contributedanalyticalinputs to policy developmentleadingto the urban policy
statement of 1987, which was supported by an Urban Sector Loan (Ln. 28167-IND). Since the mid
1980sthere has also been a series of investmentprojects.Two of these namelythe RegionalCities Urban
Transport Project (LN. 2817-IND, RCUTP) and the JABOTABEK Urban Development Project
(Ln. 2932-lND) focused on urban transport, including road construction. In the 1990's, urban road
developmentand traffic managementare also a significantcomponentof IntegratedUrban Infrastructure
DevelopmentProjects (IUIDP) for the East Java/BaliUDP (Ln. 3304-IND), Sulawesi/IrianJaya UDP
(Ln. 3340-IND), Surabaya UDP (Ln. 3726-lND), Semarang/Surakarta UDP (Ln. 3749-IND), and
KalimantanUDP (Ln. 3854-lND).
2.2
The Bank has also financed a series of road projects during the past two decades. The projects
supported developmentof the national, provincialand kabupaten (local government)road networks.
Four are under implementation- Third KabupatenRoads (Ln. 3490-IND),Eastern IndonesiaKabupaten
Roads (Ln. 3579-IND), Fifth Kabupaten Roads (Ln. 3732-IND), and the HSL-2 (Ln. 3712-IND).
Lending has been directed at three broad objectives:
*
-
improving the quality of the road network through maintenance, rehabilitation,

improvement (minor widening) and new road construction.
developing the capability of the road agencies at central and local level
strengthening the capacity for road sector policy formulation and implementation, and
improving road sector policy through support for the GOI Policy Statement and Action Plan
on Road Infrastructure.
Annex 1 lists previous urban infrastructure and road projects.

B. PORTFOLIO PERFORMANCE
2.3
The project implementation record for transport projects in Indonesia has been solid. The six
most recently completed projects were rated satisfactory by the Department and by OED in terms of
overall outcome and sustainability. The institutional impact of the six was rated substantial in three
cases, moderate or partial for three, and negligible for one, the Regional Cities Urban Transport Project
(RCUTP), discussed in para. 2.6. In the current road portfolio of five projects, all are rated satisfactory
in terms of development objectives, and all but one (HSL-2) are rated satisfactory in terms of
implementation progress. The unsatisfactory rating is due to delays in procurement and in preparing
subprojects caused by weak project management. The longer term prospects for achieving a satisfactory
rating are good. The project management and oversight arrangements for this project (see section 6)
have been designed to minimize the potential for delays.
2.4
For the portfolio of recently completed urban projects, all three were rated satisfactory by the
Department and OED in terms of overall outcome. Sustainability was mixed, and institutional impact
moderate or substantial. All six projects in the current urban portfolio are rated satisfactory in terms of
development objectives, and all but one (Third JABOTABEK Urban Development Project, JUDP-3, Ln.
Strategic Urban Roads Infiastructure Project
- 1I -
3246-[ND) are rated satisfactory in terms of implementation progress. The JUDP-III unsatisfactory
rating is due to a major procurement irregularity on the KIP program in DKI Jakarta involving contracts
totaling about $20 million. This project is being supervised attentively and its prospects for achieving a
satisfactory rating by June 1996 are good.
C. LESSONSLEARNED
2.5
Bankwide experience with urban road projects is that strong institutional arrangements are the
key to project success and sustainability. This is bome out in Indonesia. Civil works for road projects
have generally been completed on time and to an adequate quality standard. Audit reports confirm that
the projects have been well justified and are sustainable. This can be attributed to the strength and
continuing improvement in the capability of road agencies. The Directorate General of Highways (Bina
Marga) has developed into a strong and capable central agency. Even so, civil works undertaken in both
road and IUIDP projects have generally been limited to routine maintenance, rehabilitation, widening
and improvement on existing alignments, with limited new works or realignment. Urban road
components in IUIDP have suffered from a lack of longer termnplans and construction programs.
2.6
RCUTP is the previous project closest in scope to SURIP. The main lessons learned from
RCUTP are set out in the recently completed Project Completion Report (Report No. 15245-IND). This
report indicates that although the civil works were successfully completed and staff trained at the local
government level, sustainable capacity was not created at a local level to undertake similar works in
future. The ascribed cause was the delay in enacting enabling regulations for devolution of
responsibilities for transport planning, road programs and traffic management from central to local
government. These regulations are now in place, and GOI is proceeding with the establishment of the
necessary road traffic and transport units (DLLAJ) in all local governments.
2.7
Bankwide experience is that to achieve major and sustainable improvements in the capability of
road agencies, institutional development components require:
*
*
*
*
considerable Bank staff input over an extended period of time;

well prepared and detailed implementation arrangements;
continuing attention and support from Govemment decision makers; and
a flexible approach which will provide for the improvements to take account of, and be
integrated into Government systems and procedures.
D. BANKSTRATEGY
2.8
The Bank Country Assistance Strategy (CAS) discussed in March 1995 for Indonesia has five
main objectives: reducing poverty, managing resources sustainably, enhancing human resource
development, maintaining growth with macroeconomics stability, enhancing competitiveness. It seeks
infrastructure investment that supports private sector development and competitiveness, strengthens
capacities at all levels of government and decentralizes responsibilities. It seeks to improve public sector
management and environmental management. These are key objectives of relevance to urban transport.
2.9
The Bank's Country Study, Indonesia Environment and Development of July 1994 (Report
No. 12083-IND), discusses urban transport and the control of vehicle emissions. It indicates that
reducing the rate of growth of congestion and the number of vehicles in key urban centers will be critical
to minimizing efficiency losses and to protecting the health and welfare of the urban population. The
study states that an effective strategy would need to include key elements of land use planning,
12 -
improving the communications network (expanding the urban road network should receive a high
priority), traffic management and engineering, technical options for vehicles and fuels, improved public
transport, and demand management.
2.10
In the urban sector, the Bank has oriented its overall sector lending to assist GOI to deliver
adequate urban infrastructure investments in cost effective ways. In promoting efficient urban
development, the Bank's strategy supports the expanded IUIDP approach. However implementation
should include both sectoral and integrated approaches as appropriate. While all plans should be
integrated, in some cases implementation could be handled through separate sectoral projects. For
example in smaller municipalities multisectoral projects are generally of manageable size and
complexity. An integrated approach would therefore be more appropriate. In other cases, where the
requirements of a particular sector are sufficiently large and complex, both in technical terms as well as
on policy, institutional and financial matters, sectoral projects within the framework of an integrated plan
may be better.
2.11
The Bank's urban sector strategy also promotes establishing an enabling regulatory and planning
framework for urban land management. A key focus of the Bank's strategy will be to support GOI
efforts to establish an effective land management system and simplify other regulations to facilitate more
efficient and environmentally sound urban land use and strengthen land tenure. The Bank is helping the
Government develop improved implementation frameworks for addressing environmental and social
impacts of urban projects.
2.12
Urban Transport. The context for the Bank's working strategy on urban transport in Indonesia
is provided by the Country Assistance Strategy, the Country Environmental Study and the Urban Sector
Strategy. The framework is provided by the Technical Paper on Urban Transport in Asia (1994), and the
Bank Transport Sector Policy Review presented to the Board on September 22, 1995. The basic thrust of
this working strategy is to support through physical works and TA components in sectoral and integrated
investment projects, GOI initiatives for:
Implementation of existing GOI transport policies in urban areas, including: improving road
safety, integrating transport planning and urban planning and mitigating the adverse social and
environmental impacts of motorization;
Formulation of GOI urban transport policy at national and local levels that supports a path of
development that is economically, financially, environmentally and socially sustainable;
Implementation of action plans for these GOI policy initiatives in metropolitan regions and
other urban areas in which the Bank is funding projects;
Institutional development of central and local government capacities to formulate and
implement Urban Transport Policy, and to support GOI initiatives for decentralization of these
activities to local government;
Human resource development for policy formulation, urban transport planning, traffic
management, public transport planning and operations, air pollution monitoring and control,
environmental and social assessment, management and monitoring; and
Strategic Urban Roads InfrastructureProject
13 -
Infrastructure and services provision that is affordable and commensurate with forecast demand
to: facilitate economic growth; increase urban productivity; alleviate poverty; and improve the
quality of life in urban areas.
E. RATIONALE FOR BANK INVOLVEMENT

2.13
Indonesia has been successful in generating economic growth of 7% a year over the past ten
years, and as a result is experiencing rapid urbanization and rapid motorization. A number of donors,
including the ADB and OECF are assisting GOI initiatives to manage these processes of rapid
urbanization and motorization. This project fills a gap of major strategic importance in the road and
urban portfolios of the donors. The project is designed to complement the projects being funded by other
donors in particular the recently approved ADB North Java Road Improvement Project (ADB Loan
1428-INO), as well as projects funded by GOI from their own resources.
2.14
The Bank is currently involved in operations which are related to this project. The HSL2
provides a range of support for the roads sector, and includes the upgrading of some interurban sections
of the national primary arterial road network. Urban projects under implementation and under
preparation in a number of cities include components for upgrading and expansion of the urban road
networks. SURIP helps bridge a serious policy and institutional gap. Developing and implementing
sustainable transport policy will require cooperation and coordination between different GOI Ministries
and agencies (MPW, MOT, BAPPENAS, BAPEDAL), different agencies in MPW (Bina Marga, Cipta
Karya), different sections of Bina Marga, and different levels of Government. The Bank is well placed
to act as a catalyst and to facilitate this cooperation given its pioneering role in IUIDP/IUDP and HSL 2.
3.
14 -
THE NORTH JAVA CORRIDOR

A. URBAN DEVELOPMENT
3.1
Setting. The 750 km long North Java Corridor (NJC) follows the gentle terrain of the northern
coastline of the provinces of West, Central and East Java. It is generally constricted to a relatively
narrow coastal plain between the volcanic backbone of Java and the Java Sea which historically has been
a center for human settlement. The NJC is anchored by two major conurbations. To the west, the
megacity of JABOTABEK, comprising DKI Jakarta, and the municipalities of Bogor, Bekasi and
Tangerrang in West Java province. To the east, the more compact but rapidly growing city of Surabaya,
Indonesia's second largest city (and also an international gateway) in the East Java province. The
intermediate towns and cities of Cirebon (an important port), Tegal, Pekalongan and Semarang and other
smaller towns are all dynamic growth centers with strong mutual linkages and with their economic
hinterlands. Surabaya is the regional center for the surrounding cities including Gresik and Malang and
accordingly generates extensive interaction between them.
3.2
Economic Development. Indonesia's real GRDP per capita doubled from 1983 to 1989. This
was also the case for DKI Jakarta. However, real per capita GRDP grew at a slightly higher rate in the
provinces of Java. GRDP per capita of these three provinces was about 35% of that for Jakarta and about
80% of that for Indonesia in 1989.
3.3
Demographic Trends. The bulk of the population growth on Java is expected to occur in
JABOTABEK and greater Surabaya. JABOTABEK is forecast to grow from 17 million in 1990 to
30 million in 2005. Over the same period greater Surabaya is forecast to grow from 8 million to
14 million. While the overall population of Central Java is forecast to grow little, the urban population is
forecast to grow substantially, particularly of the major towns and cities.
B. OVERALLTRANSPORTDEMAND
3.4
The NJC is served by both road and rail. In addition, airline services exist for travel between
DKI Jakarta, Cirebon, Semarang, Surabaya and the towns of Surakarta and Yogyakarta to the south. The
Land Transport Development Plan Study Phase II Study (LTDP-II) made broad estimates of the demand
for interurban transport from 1982 to 1991 shown in Table 3.1. Interurban passenger transport demand
grew at 7.2% per annum.
3.5
In the short to medium term, the likelihood of significant changes in the railway's market share
is not good on grounds of rail capacity. The key mainline sections of the railway in Java are now being
operated close to or at capacity. Developing Java's railway to a stage where it is capable of carrying a
much increased share of future interurban passenger traffic and of general and other freight traffic will
require major investments in double-tracking and/or signaling and far reaching institutional and policy
reforms, both of which will take a considerable time to be completed. The initial steps now being taken
by Government will not in themselves have any significant impact on the demand for road transport in
the short to medium term.
- 15 -
TABLE 3.1: DEMAND FOR INTERURBAN TRANSPORT, JAVA, 1982 - 1991
Passenger
Billion passenger/km
Mode Share
Freight
Billion tone/km
Mode Share
Road
Rail
Sea
Total
1982 1 1991
1982 1 1991
1982 1 1991
1982 E79199
70.4
92.4%
133.1
93.4%
5.8
7.6%
9.2
6.5%
--
18.9
n/a
27.6
39%
0.7
n/a
1.1
1.6%
n/a
n/a
0.2
76.2
100%
142.5
100%
42.1
59.5%
n/a
n/a
70.8
100%
(1) Trafficon nationaland provincialhighwaysystemonly

(2) n/a = not available
Source: Table3.1, LTDP- II, FinalReport,1992
3.6
For the long tern, rail has the potential to play a much expanded role in interurban passenger
transport in Java. With larger traffic volume the relative cost advantage of rail improves. Furthermore,
as road transport causes much higher external costs on account of congestion, pollution and accidents,
charging for these costs would also work in favor of rail transport. Rail could help, therefore, in meeting
the growth in transport demand and in alleviating the adverse consequences of exponential growth of
motorization. For general freight movements over short, medium and most long (by Indonesian
standards) distance, road transport will continue to be the most economical mode, particularly since the
geographical pattern of industrial development is being shaped largely by the expanding toll road
network. For long distance bulk movements, shipping, if a technical option, will remain far more
economical than rail.
C. ROADTRANSPORTNETWORK
3.7
The principal route for road traffic traveling between Jakarta and Surabaya is currently the road
paralleling the north coast via Semarang and Tubang. The North Java Transport Corridor study found
that most Jakarta - Surabaya traffic, which may only be 10% of traffic on an intermediate link, uses this
road. Much of this route currently consists of two lane highway sections. Trafficvolumes in the corridor
range from about 10,000 to 20,000 vehicles annual average daily traffic (AADT) of which commercial
vehicles (light goods vehicles, buses and trucks) are typically over half of all vehicles. At a volume of
between 15,000 and 20,000 AADT congestion is very apparent on two-lane highways and consequently a
program of capacity expansion is underway, to provide a four lane standard on the inter-urban sections of
the route. Due to the existing and emerging congestion and vehicle mix on the highways, safety is also of
concern.
3.8
To respond to increasing transport demands, major inter-urban road improvement projects are
on-going including the proposed development of an expanded system of toll roads to be developed in the
next five to ten years. Regional transport improvements in the corridor are guided by the North Java
Transport Corridor (NJTC) Study. However the NJTC Study is concerned solely with the investment needs
in new and improved inter-urban roads to facilitate travel between Jakarta and Surabaya. It did not address
the requirements for road investment in the main urban areas. The recently approved ADB Loan 1428-INO
16 -
for the North Java Road Improvement Project (NJRIP) is based on the recommendations of the NJTC
Study.
3.9
Furthermore, the Heavy Loaded Road Improvement Project (HLRIP) recommends interurban
road improvements along the NJTC route and various national highways and primary roads of Java. The
construction of selected HLRIP road improvement projects is in progress with funding assistance from
the Overseas Economic Cooperation Fund of Japan (OECF). This project is consistent with the plans and
recommendations of the NJTC Study and the HLRIP. It will support the achievement of the regional
transport goals of the NJTC. Individual road scheme sub-projects are designed to complement these ongoing road capacity expansion activities along the NJTC.
3.10
Toll Road Proposals. An ambitious program has been prepared to extend the existing
370 kilometers inter-urban toll road network in Java. Construction of about 510 kilometers of new toll
roads is proposed within the next ten years, most envisaged as build-operate-transfer (BOT) projects with
terms of normally 25 to 30 years. Proposals at various stages of development, from initial study to
concession negotiations, exist to complete a toll road along the North Java Corridor. The state toll road
corporation, PT Jasa Marga, will build and operate the 28 kilometers long Palimanan to Losari segment,
which skirts Cirebon. Implementation plans are fairly well advanced, and it is expected to open in 2002.
It is considered probable that the segment between Pemalang and Batang will be completed in 2006.
The 75 kilometers long segment between Batang and Semarang is expected to open by year 2005.
Opening of the Semarang to Demak segment is not expected until some time later, perhaps by 2007 or
2008. No information is available on the implementation schedule for toll roads in the other sections of
the corridor.
3.11
Experience of private participation in toll roads world wide and in Indonesia indicates that
effective private participation does not come about easily. GOI's outline masterplan for the strategic
network of high capacity limited access toll roads is generally sound, but is not well integrated with
parallel plans for capacity expansion on public roads. GOI Policy is that there always has to be an
alternative public route to a toll road. Along the North Java Corridor GOI has taken a view that the
alternative route should be a good quality four lane road. What needs to be done on a priority basis is to
firm up: (i) the most appropriate route alignments of the key links in the masterplan so that individual
sections can be filled in as and when justified; and (ii) the appropriate timing of construction of
individual high priority links in the light of the experience with toll road traffic growth and traffic
diversion of the past five years. Private funding over the next five years is likely to amount to
US$2 billion at the most. This would comprise: (i) urban toll road projects already committed and well
justified such as the Jakarta outer ring road and totaling some 50 km; and (ii) a program of economically
and financially viable interurban toll road projects on the order of some 200 km involving funding of
another US$1 billion.
D. NORTHJAVATRAFFIC CHARACTERISTICS
3.12
Trafric Composition. Average traffic composition for Central Java is considerably different for
urban and rural links, as shown in Table 3.2.
- 17 -
TABLE 3.2: TRAFFIC COMPOSITION,CENTRAL JAVA 1994 (PERCENT)

Vehicles Class
Rural
Urban
Cars
Light passenger
Light goods
Buses
Trucks
29.2
16.7
21.3
10.7
22.1
42.4
20.9
16.4
7.1
13.2
Total 4-wheel:
100.0
100.0
29.0
15.0
71.0
48.0
(as % of 4-wheel total trafic).
Motorcycles
Unmotorized vehicles
It should be noted that the term "rural link" may in many cases be a misnomer since a considerable
number of "rural" links are in areas which are at least semi-urban (i.e., built up on both sides of the road)
in character. For this project, traffic composition will tend to be similar to that for rural links.
3.13
The 1991 National Origin-Destination Survey. This survey provides some indication of travel
patterns for four wheeled traffic along the North Java Corridor. For the survey Central Java was divided
into 35 zones involving 29 kabupaten and six kotamadya areas. Of these, 15 zones are located along the
North Java Transport Corridor from Brebes in the west to Rembang in the east. Survey points were at
kabupaten/kotamadya boundaries. The results are shown in Table 3.3. Intra-kabupaten trip distances are
estimated to be between 40 and 90 kilometers with an average of about 50 kilometers. The average traffic
volume in the corridor of 11,000 vehicles (AADT) is at the lower end of the range estimated in the NJTC
Study as it will exclude most shorter distance trips (under 50 kms).
TABLE 3.3: NORTH JAVA TRANSPORT CORRIDOR (1991)

ORIGIN/DESTINATION OF TRAFFIC IN CENTRAL JAVA SECTION
Origin/Destination
AADT
Percent
Withinthe North Java Corridor
4,400
39.9
Corridorto/fromthe rest of Central

Java
2,000
18.2
Corridorto/fromthe rest of Java
1,040
9.5
Intra-Kabupaten
3,560
32.4
11,000
100.0
Estimated Totals
18 -
3.14
Traffic Growth Forecasts. Traffic growth on the national and provincial road network, and
specifically for the North Java Corridor, has been forecast by various previous studies including:
HLRIP, NJTCS, and LTDP-II. These give a range of forecasts, from 5.3%-6.2% a year to 2002, and 4%6.5% from 2003-2010. For this project, growth rates by vehicle type were determined, based on forecast
economic growth, as discussed in Chapter 6.
E. CURRENT AND EMERGING ISSUES
3.15
Dense development, increasing urbanization and incomes are expected to continue to increase
demands for travel throughout Java and in particular within the North Java Corridor (NJC). Road
transport's role will grow rapidly for both commercial and private transport. Attention has until now
mainly been focused on the inter-urban highways and the larger cities (within for example, IUIDP
Programs). The smaller but still significant small and medium size towns require assistance in
strengthening land use planning, provision of strategic roads and strengthening secondary road networks
(to prevent overloading of the primary networks).
3.16
Increasing congestion has been accompanied by delays and stop-start conditions at numerous
bottlenecks in the corridor which are often within or on the approaches to towns. These slow conditions
give rise to excessive levels of exhaust fumes and noise, and increased accident risk. Relief from this
congestion would be beneficial for the quality of life within towns and for the medium to long distance
commercial vehicle and other traffic.
3.17
While appropriate strategic roads including bypasses are required in many urban areas in the
North Java Corridor, they must be carefully located and implemented to ensure they are attractive to use,
have a favorable effect on the growth patterns of the towns in question and are sensitive to the urban
fabric. Quality of design and implementation is paramount to realize benefits, mitigate negative
environmental and social impacts and to manage road use and abutting land use.
Strategic
Urban Roads Infrastructure
Project
4.
19 -
THE PROJECT
A. PROJECT ORIGIN AND FORMULATION

4.1
Previous Studies and Projects. A number of studies and projects funded by the Bank, ADB
and OECF have considered the development of the interurban sections of the primary road network in
Indonesia. While Indonesia has a relatively sophisticated road management system for interurban roads,
there has been no systematic nation-wide consideration of urban sections of the primary road network.
This is a shortcoming of increasing significance given the rapid urbanization in Indonesia.
4.2
In parallel, throughout Indonesia, Integrated Urban Infrastructure Development Programs
(IUIDP) are being implemented and more are under preparation. IUIDPs include mainly water supply,
sanitation, waste management, drainage, and road investments within a specific local government area
(Kabupaten or Kotamadya) for a five year period. The road component generally covers construction,
improvement and rehabilitation of secondary, collector and local roads, and should in principle also
include primary roads which pass through the urban area. In practice major investments to primary
urban roads are often excluded from the IUIDPs for a variety of reasons, both of design approach (the
need to examine the relationship of individual links with the primary road network as a whole, as well as
with the local urban road network), and administrative responsibility.
4.3
The Program. The result of the current approach is that congestion on primary roads in urban
areas is not well addressed. Government of Indonesia (GOI) officials have expressed concern that
bottlenecks to economic growth are developing in urban areas, especially on Java, where the exportoriented manufacturing industry is concentrated. The Strategic Urban Roads Program has been
conceived to assist GOI in addressing these concerns. This program is seen as a series of projects with
similar objectives and components, but with each project in different geographical areas and/or cities.
4.4
Strategic Assessment. A nationwide analysis of 306 cities was undertaken as part of project
preparation. In order to analyze congestion problems, and identify possible future projects, the analysis
distinguished between groups of small to medium sized cities along a road corridor and larger cities with
populations greater than 500,000. The split was due to the complexity of the problems to be analyzed,
the potential packaging of investments, and the length of time required to prepare projects. More
sophisticated analysis is required for the larger cities including integrated land use/transport studies
which must precede feasibility studies. On the other hand, it is fairly robust to have feasibility studies as
the starting point for project preparation in the corridors. Furthermore, issues such as those related to
involuntary resettlement are also more tractable in such contexts.
4.5
The project. The GOI suggested that the North Java Corridor has the most pressing congestion
problem in the country. The analysis carried out for the Strategic Assessment confirmed GOI's
assessment. This project is the first of two projects intended to address bottlenecks in small and
medium-sized towns in the North Java Corridor. Within the corridor the Bank is currently engaged in
urban projects with road components in Jakarta, Semarang and Surabaya. The ADB North Java Road
Improvement Project (ADB Loan 1428-INO) and the OECF Heavily Loaded Road Infrastructure Project
(HLRIP-OECF IP 383) are supporting improvements to the interurban primary arterial road sections.
The road sections being improved or prepared for improvement under this project will complete the
upgrading of the North Java corridor route to four lane standard between Jakarta and Surabaya.
20 -
B. OBJECTIVES
4.6
4.7
Objectives. There are five objectivesfor this project:

a)
to reduce traffic bottleneckson the nationalroads in selectedurban areas in the North Java
corridor;
b)
to address the environmentaland social issues associated with the increased usage of the
nationalroad networkin theseurban areas;
c)
to assist GOI in the process of decentralizingresponsibility for the planning, design,

construction,maintenance,managementand regulationof urban transport from central to
local governmentas set out in recent governmentregulations;
d)
to strengthen technical and institutionalcapabilities,particularly with respect to dealing

with environmentaland social issues, of GOI's central and local government agencies
involvedin urban road developmentand management.and
e)
to assist GOI in the formulation,articulationand implementationof urban transportpolicy.
Requirements. In meetingtheseobjectives,the projectshouldsatisfy the

followingrequirements:
a)
to ensure that any new road provision in the selectedurban areas includesmeasureswhich
facilitatethe efficient,equitableand environmentallysustainableuse of new road capacity
b)
to ensure that the provision of primary urban roads in the selected urban areas is fully
integrated with regional and urban spatial planning and Integrated Urban Development
Programs(IUDP)at the local governmentlevel;and
c)
to ensurethe most effectiveand efficientutilizationof the existingroad network.

C. MONITORING PROJECT OUTCOMES
4.8
Indicators for monitoringthe outcome of the project against the five objectivesare shown in
Table 4.1 and discussedin Annex 2. Indicatorsfor monitoringinputs(disbursements,contractsawarded,
person months of technical assistance),and outputs (physicalworks completed,policies and guidelines
written,persons trained) will be reportedas part of normal project management. They are described in
Chapter 5. Indicators have been developed from two recent papers: "PerformanceIndicators for the
Road Sub-Sector:Conceptsand Examplesfor Indonesia" givenat a presentationof DGH in May 1995,
as well as from the HighwayMode Indicatorsin the First Edition Note "The Use of Sectoraland Project
PerformanceIndicatorsin Bank FinancedTransportOperations"(ReportTWU21) April 1995.
4.9
To the extent possible,quantifiableindicatorshave been selected. Where this was not possible
the ratings will be based on the professionaljudgment of suitably qualified GOI and Bank staff
monitoringthe project. Indicatorshavebeen selectedwhich shouldbe monitoredby agenciesas part of
normaloperationsin accordancewith internationalgood practice. Wherethis monitoringis not currently
being undertaken, the project will assist in establishingthe data collection and analysis procedures.
Reviewof the indicatorswill be includedin thejoint GOI/Bankformalannualreviewof the project.
21 -
TABLE 4.1: PROJECT OUTCOMEINDICATORS

Objective
Target Outcome
a) Reducetraffic bottleneckson the national

road network in selected urban areas in the N.
All sevenbypasssub-projects
attractat least80%of
Java corridor.
forecastedthroughtraffic and operatewithoutcongestion

over most (80%)of their length.
b) Address the environmental and social issues
Projectaffectedpersons(PAP)whohave to be resettled
associatedwiththe usageof the nationalroad
have their livingstandardsimproved.
network.
c) Assist GOI in the process of decentralization

of responsibilityfor urban transport
All eight DLLAJestablished,staffed,stafftrainedand

participatedin the preparationand implementationof those
parts of the projectwithintheir areas of responsibility.
d) Strengthencapabilitiesof GOI's centraland EnvironmentalAssessment,Managementand Monitoring

local government agencies involved in urban fully integratedinto projectpreparation,and influencing
roaddevelopmentand management
planning,designand implementationof at least90% of
BINKOTprojects.
e) Assist GOI in the articulation and CentralGovernmentUrbanTransportPolicyagreed and
implementationof urban transportpolicy.
incorporatedintothe TransportSectorpart of REPELITA
VII.
Note: Indicatorsformonitoring
inputs,outputsandprojectprogressareshownin Table5.4.
4.10
The outcome indicators chosen are directly related to project inputs and outputs. These
outcomes can be influenced by the GOI and the Bank. The GOI can influence the outcome by
monitoring progress through good practice project management and taking corrective action as
appropriate. The Bank can influence the outcomes through active supervision and the annual review.
During negotiations agreement was reached on the outcome indicators and that project outcomes will
besurveyed approximately one year after the conpletion date of any sub-project
D. PROJECTDESCRIPTION
4.11
The project is made up of five components:

A. Road Construction
B. Urban Management and Quality of Life Improvements
C. Institutional and Human Resource Development
D. GOI Urban Road Program Development
E. Policy Articulation and Implementation
Component A: Road Construction (US$132 million)

4.12
This component corresponds to objectives (a) and (b). It consists of seven sub-projects (road
schemes):
*
*
completion or new construction of ring roads or bypasses on new alignments around four
towns: Weleri, Kaliwungu, Demak and Kudus; and
widening and improvement to existing ring roads or bypasses around three towns: Cirebon,
Pemalang and Semarang.
22 -
All the towns are in the Central Java Province, except Cirebon, which is in West Java. The total road
length is some 57 kms. The cost includes land acquisition (including resettlement) and construction,
remaining scheme preparation, (including final engineering design, environmental and resettlement
action plans) traffic signals, construction supervision, project management and performance monitoring.
The works include construction of culverts, bridges, road junctions, junction approach roads, and
measures to address environmental and social considerations. Subprojects are described in Annex 3.
4.13
All roads are being designed to a dual two lane carriageway standard, with an overall cross
section width of 22 meters. The roads are also being designed for limited access with widely spaced
junctions (minimum spacing 500m), with signal control or grade separation. Bridges are provided over
railways, where justified economically on operational and engineering grounds. Further details of the
road design standards are given in Annex 4. A Right of Way (ROW) width of 40 meters has been
adopted for these roads to provide adequate space at junctions, and to permit later provision of frontage
roads if required. Land is being acquired for the 40 meter ROW, with a minimum initial acquisition of a
22m ROW. The sub-projects are in different stages of design. Final Engineering Design (FED) is
complete for the Weleri sub-project, and all other FED is scheduled to be completed by December 1996.
A programmatic approach to the approval of the subprojects will be used. Selection of a sub-project in
accordance with the criteria set out in Annex 5, Bank approval of the sub-project, and where
applicable implementation of the RAP acceptable to the Bank, will be a condition of disbursement.
These criteria have been met for the Weleri sub-project, scheduled to start construction in year I of the
project.
Component B: Urban Management and Quality of Life Improvements (USS 32.3 million)
4.14
The objective of this component is to take advantage of the diversion of through traffic to
improve the quality, safety and amenity of the urban environment, and to enhance business functions.
While Components A and B are described separately, they are considered as complementary packages of
physical works. In any town, both components are necessary to meet the objectives of the project, and
achieve the economic, social and development benefits. Funding of the construction of by-passes will be
predicated on local governments agreeing to prepare and implement this component. To ensure the
existing road space is not used merely to accommodate more motorized traffic, a series of traffic,
environmental, and land use management measures will be implemented once the bypasses are open to
traffic. Local governments will be assisted to prepare and implement this component according to
agreed eligibility criteria for funding.
4.15
This component comprises these activities:

Bi
A Traffic and Environmental Management Plan for the existing road and adjacent areas
to be implemented once the by-pass is opened including road scheme subprojects and other
civil works to be included in the medium term expenditure program (PJM) for the town,
with a time based implementation schedule;
B2 A Structure Plan Review. Carrying out reviews of the impact of the construction of the
bypass on the land use plan/strategic structure and transport investment plans (PJM) for
each town, together with time based proposals for any additional road scheme subprojects
required as a result of this review to be included in the traffic and environmental
management plan; and
B3 Protection of the function and the Right of Way of the bypass, through regulations, and
by making provision for development at acceptable locations along the bypass.
23 -
B4 Provision of equipment for routine road maintenance of the existing road and other
roads in the larger participating local governments, including training of operators.
4.16
Outline scopes of the activities, detailed guidelines on traffic and environmental management
measures, and civil works suitable for funding are set out in Annex 6. A time based approach to the
preparation of a potential package of measures for each town, as well as to carry out the reviews of the
Strategic Structure Plans and transport investment plans has been developed. This approach will include
local participation of business and civic groups, is also shown in Annex 6. Selection of a road scheme
sub-project in accordance with the criteria set out in Annex 6, Bank approval of the sub-project, and
where applicable implementation of the RAP acceptable to the Bank, will be a condition of
disbursement.
Component C: Institutional and Human Resource Development TA (US$ 2.2 million)
4.17
This component will assist in the decentralization of responsibilities for urban transport
(including roads, traffic management and public transport) from central to local government, as set out in
Law 14 of 1992 and the subsequent enabling regulations, and the strengthening of BINKOT to deal with
environmental and social issues. The component consists of activities directly linked to construction and
operation of the SURIP bypasses, as set out below.
4.18
Cl Strengthening of DLLAJ in participating local governments. Based on their
responsibilities under GOT regulations DLLAJ in the participating local governments covering project
towns should take the lead in preparing and implementing the "Quality of Life" improvements, which
should be put in place once the bypasses are open to traffic. For this reason, and to benefit from the
lessons learned from RCUTP, the initiation by the participating local government of the process for the
establishment of DLLAJ is a condition of sub-project approval as indicated in Annex 5. As the DLLAJ
are new organizations, they will need TA support in their initial period of operation. The project will
provide support for the institutional strengthening of the newly established DLLAJ and training of local
govemment staff in the DLLAJ to fulfill their new roles using training material already prepared under
previous Bank funded projects. The TA will include preparation of draft guidelines for traffic and
environment area management.
4.19
C2 Strengthening of BINKOT AMDAL Section. This activity will provide further operational
support to BINKOT AMDAL Section. The TOR for this further support will be similar to the TOR for
the TA funded under HSL 2, a copy of which is on the project file. The support will be scheduled so that
the BINKOT AMDAL Section can take the lead role in the environmental management and monitoring
of the road scheme sub-projects. This TA will also support updating of BINKOT technical guidelines on
the environmental and resettlement aspects of urban roads.
Component D: Urban Road Program Development (US$ 0.6 million)
4.21
This component is intended to provide on initial step in improving the road planning system for
urban areas. Technical assistance support will be provided to BINKOT for the creation and updating of a
database to support the urban road investment program, as part of the overall Urban Road Management
System (URMS) which is being implemented progressively on a modular basis with support from the
Bank and ADB. The database will be established at a national level, but designed to be capable of
application also at a provincial or local government level. Support under this project will assist BINKOT
to complete the establishment of a road network data base for 306 cities, to analyze the data and to
update previous analysis from SURIP project preparation and the Road Sector Study.
24 -
ComponentE: Policy Formulationand Articulation (US$ 0.6 million)

4.23
This component will provide Technical Assistance (TA) to GOI in the articulation and
implementation of urban transport policy. There are two activities, Urban Transport Policy and
Programs, and Planning, Programming, and Execution of Urban Road Works.
4.24
El Urban Transport Policy and Programs. Under this sub-component, support is to be
provided to the Interministerial Working Group (established formally in December 1995 by
BAPPENAS) to prepare by mid 1997 an urban transport policy for incorporation in the Transport Section
part of REPELITA VII. A Japanese PHRD grant fund of $1.34 M equivalent has been obtained to assist
GOI to formulate a national urban transport policy framework, and within this framework to develop
urban transport policies and investment programs for case study cities.
4.25
E2 Planning, Programming and Execution of Urban Road Works. This activity will provide
consultant services to support BINKOT in the preparation/updating of existing policies, procedures and
guidelines, on the planning, design and management of urban roads for application at the national and
local level, including for IUDP. This activity will complement the institutional development activity in
BINKOT and will be undertaken in parallel with the preparation of other potential SURIP projects. It
will also extend similar policy development activities for interurban roads being undertaken as part of the
Bank funded Second Highway Sector Loan. Initial technical areas to be addressed will include
feasibility studies, functional design guidelines, economic evaluation, , and IUDP. Further details are
provided in Annex 7.
E. ENVIRONMENTALCONSIDERATIONS
4.26
Impacts. The proposed project has been classified as environmental category A under the
Bank's procedures as significant impacts are expected to occur. The construction of new roads in or
adjacent to existing urban areas impacts on the environment, particularly in terms of noise, air pollution,
road safety and community severance. Air and noise pollution are to be expected to accompany the
construction of the road schemes. However the by-passes will relieve the existing roads through the
center of the towns of the through-traffic of trucks and buses. This will reduce levels of noise and air
pollution in town centers and enhance their role as a focus for social interaction.
4.27
Environmental Procedures. The legal basis for environmental protection and management in
Indonesia was substantially modified by Government Regulation No. 51 of 1993 (PP 51/1993). This
recent legislative change has served to extend the AMDAL system to an activity which is "required as
part of the decision-making process". While overall coordination of the AMDAL system rests with the
Environmental Impact Management Agency (BAPEDAL), central and provincial level government
agencies are directly responsible for implementing these procedures.
4.28
Bina Marga has recently finalized an AMDAL screening process for road projects, shown in
Annex & This process is being applied to road schemes in this project. This screening process provides
a systematic approach to environmental impact assessment, monitoring and management, based on a
project's type, scale and location in relation to a range of sensitive environmental areas. For all projects
that may result in significant environmental impacts and/or involve sensitive environmental areas, the
preparation of an ANDAL study (a detailed environmental impact assessment) is required and will be
submitted to the Bank as part of the sub-project approval process. Such ANDAL studies substantially
comply with World Bank requirements for project-specific environmental assessments.
- 25 -
4.29
Sub-Projects. An overriding objective of BINKOT and the Bank in reviewing the alignment
and detailed design of the urban road sub-projects proposed for the project has been to avoid resettlement
as far as possible and to minimize the adverse impact on the environment. The Environmental
Assessment (EA) has been completed, and a summary EA prepared for the five schemes being
considered for construction starts in years I and 2 of the project. These are Stage I of the Cirebon and
Pemalang by-passes, Weleri, and Kaliwungu bypasses and Semarang Northern bypass Stage 1. This
summary in Bahasa Indonesia has been made available for public inspection in the affected localities.
Weleri and Kaliwungu by-passes are on green field alignments, but in both cases there is a Kampung
(village) close to the road which will suffer significant increases in noise and pollution levels. Noise
barriers or mitigation measures are required for compliance with draft Indonesian standards.
Environmental Management and Monitoring Plans have been prepared.
4.30
EAs for sub-projects to be constructed in later years are in progress, and are part of the process
for completion of road scheme sub-project design which has been agreed with GOI. Critical issues
which will be included in these documents are included in Annex 8. The need for full ANDAL (EIA)
studies has been agreed for the flyovers being evaluated for the railway crossings on the Cirebon by-pass
(stage 2) and the Kalibanteng roundabout at the western end of Semarang Northern Ring Road. For road
schemes sub-projects, completion of satisfactory EA, management and monitoring plans is one of the
criteria that have to be met before the sub-project is approved as indicated in Annex 5.
F. LAND ACQuISITION, RESETTLEMENTAND SOCIAL CONSIDERATIONS
4.31
Presidential Decree 55 (KEPRES 55, 1993), on land acquisition for public facilities, seeks to
ensure adequate access to information, fair negotiations, compensation awards based on real values, and
rights of appeal to the courts. KEPRES 55 still has gaps primarily in the areas of entitlement eligibility
and funding sources, and time will be required to develop implementation capacities based on local
experiences. Land acquisition and resettlement are required for the road schemes. Every effort has been
made in designing the road sub-projects to minimize resettlement. Some land acquisition took place
prior to KEPRES 55/1993, using national funds (APBD), and before Bank identification of the project.
Some resettlement has taken place within the framework of KEPRES 55. Further resettlement will be
based on policy guidelines which resolve the differences between KEPRES 55 and OD 4.30. A single
local government decree Surat Keputusan (SK) Walikota/Bupati has been issued by the local
walikotas/bupatis. To clarify the policy and procedures described in the decree, further explanation is
required, to be provided by a Juklak (Implementation Guidelines) to be issued by each walikota/bupati.
A draft model Juklak was agreed at negotiations. Together the Surat Keputusan and Juklak will provide
the policy and procedures framework and describe a Resettlement Action Plan that will be furnished to
the Bank as part of the process for approval of sub-projects. Approval and issuance by each
walikota/bupati of the Juklaks, taking into account the agreements reached at negotiations, will be a
condition of loan effectiveness.
4.32
Some 63 hectares have been acquired and a further 58 hectares of land are to be acquired for the
by pass sub-projects. Land acquisition requirements are being refined as final engineering designs are
completed. Some 1800 families are affected by the by passes at Cirebon, Pemalang, Weleri, Kaliwungu
and Kudus. Only 52 families of the 1800 families affected require resettlement for the bypass subprojects at Weleri, Kaliwungu and Kudus. Requirements for other sub-projects are still being
determined. Detailed resettlement action plans for sub-projects will be prepared and submitted to the
Bank for review as part of the programmatic approval process for sub projects agreed with GOI. To
minimize resettlement needs at Pemalang, a new alignment is being investigated for the western section
of the bypass. At Weleri, the bypass runs through the edge of a Kampung (as noted above). The road is
26 -
to be constructed on an embankment to maintain a local road connection between the two parts of the
Kampung, mitigating the severance.
G. PROJECT COSTS
4.33
For the road construction component (Component A), costs are generally based on FED and
include a 5% physical contingency. For some short sections, costs are based on preliminary designs and
include a 10% physical contingency, which will be reduced to 5% when FED is completed.
The direct and indirect foreign exchange component has been estimated based on recent Bank
4.34
projects of a similar nature. Price contingencies have been estimated based on rates of inflation of 2.3%
foreign and 6.0% local. For the Quality of Life Component (Component B), costs are based on
preliminary estimates of the resources required to undertake work of a similar nature in other towns as
part of the Bank-funded IUIDPs, and include a 15% contingency. The resulting costs are shown in
Table 4.2. Further details are provided in Annex 9.
H. FINANCING
4.35
The proposed Bank loan of US$86.9 million would finance about 52% of total project cost,
representing 100% of foreign cost and 35% of local cost. GOI would finance the remaining US$80.7
million equivalent, or about 48% of the total estimated project cost, through annual budgetary
allocations from the central government budget APBN. The financing of the proposed project is shown
in Table 4.3.
27
StaffAppraisal
Report
TABLE 4.2: PROJECT COST SUMMARY

COMPONENT
Local
A.
ROAD AND BYPASSCONSTRUCTION

LandAcquisitionandResettlement
Civil Works
Goods(TrafficLights)
Services
Engineering
IndicatorSurveys
Performance
ProjectManagement
Unit(PMU) Support
Subtotal
B.
Civil Works(APBD)
Equipment)
Goods(RoadMaintenance
EngineeringServices(APBN)
Engineering
Services(APBD)
UrbanPlanningReview
Subtotal
D.
INSTITUTIONAL AND HUMAN

RESOURCEDEVELOPMENT
DDLAJDevelopment
andTraining
BINKOTAMDAL Unit
Subtotal
URBAN ROADPROGRAIM
DEVELOPMENT
UrbanRoadDatabase
Development
Subtotal
E.
USDollars
% of
% of
(Billion)
(Million)
Foreign
Base
Total
Cost
Cost
Foreign
14.91
Total
Local
Foreign Total Exchange
6.48
55.99
0.15
4.98
0.46
30.15
2.82
1.66
0.15
6.48
86.14
2.97
6.64
0.61
35.0%
95.0%
25.0%
4.8%
64.2%
2.2%
4.90/.
0.35
14.91
198.13
6.83
15.28
1.40
25.0/o
0.5%
2.30
9.20
3.00
1.00
4.00
25.0%
82.30
245.74
71.06
35.78
106.85
33.5%
128.79
0.34
11.46
1.05
69.35
6.49
3.82
6.90
163.44
3.0O/.
3.90/6
51.4%
1.8%
4.0%o
0.4%
2.4%
79.6%
63.7%
3.5%
2.8%
URBANMANAGEMENT AND
QUALITY OF LIFE
Civil Works(APBN)
C.
Rupiabs
POLICY FORMULATIONAND
ARTICULATION
UrbanTransportPolicyandPrograms
Planning.ProgranmingandExecutionof
RoadWorks
Subtotal
TOTAL BASECOST
35.0%
7.08
3.81
10.90
3.08
1.66
4.74
24.88
0.09
0.61
2.29
13.40
1.68
0.20
0.76
38.28
1.77
0.81
3.06
10.82
0.04
0.26
1.00
5.82
0.73
0.09
0.33
35.0%
95.0%
25.0%
25.06%
25.0%h6
12.4%
0.6%
0.3%
1.0%
0.4%
36.0%
18.1%
14.5%
0.7%
0.7%
1.5%
0.6%
0.6%
1.2%
0.86
0.29
1.15
0.38
0.13
16.64
0.77
0.35
1.33
0.50
35.81
20.15
55.96
15.57
8.76
24.33
1.73
1.73
3.45
0.58
0.58
1.15
2.30
2.30
4.60
0.75
0.75
1.50
0.25
0.25
0.50
1.00
2.00
0.86
0.29
1.15
0.38
0.13
0.50
25.0%
0.4%
0.3%
0.86
0.29
1.15
0.38
0.13
0.50
25.0%
0.4%
0.3%
0.91
<0.30
0.13
0.525
25.0%
0.4%
0.3%
0.91
0.30
1.21
0.39
0.13
0.53
25.0%
0.4%
0.3%
204.47
104.19
308.66
83.90
45.30
134.20
33.8%
100.0%/
80.1%
JapanGrantFund
1.21
0.39
1.00
25.0%/.
25.00N
25.0%
9.9%/0
0.5%
0.2%
0.8%
0.3%
PhysicalContingencies
15.32
8.88
24.20
6.66
3.86
10.52
36.7%
7.8%
6.3%
PriceContingencies
24.74
12.49
37.23
10.75
5.43
16.19
33.6%
12.1%
9.7%
Taxes(GOIExpenditure)
10.07
5.39
15.46
4.38
2.34
6.72
34.90/o
5.0%
4.0%
50.13
26.76
76JS9
21.79
24.9%
19.9%
andTaxes
SubtotalContingencies
TOTAL PROJECr COST 254.60 1130.95
3815.551110.70
11.64 33.43
156.94
1167.631
34.8%
34.0%1
124.9%1
Plans,andConstruction
andResettlement
Notes: 1. EngineeringservicesincludesFinalEngineeringDesign(FED),Environmental
Supervision.
includestraining.
2. InstitutionalDevelopment
3. ValuedAddedTax (PPN)is assessedonly onGO[ ftnancedproportionof the project.
100.0%
- 28
TABLE 4.3: PROJECT FINANCING PLAN

Component B
ComponentsA, C-E
Total
BillionRp IMillion USI %of total Billion Rp.I Million USS I % of total Billion Rp I Million US % of total
Central Govemment
139.8
60.8
44.9%
7.9
3.4
10.5%
147.7
64.2
38.3%
15.6
6.7
5.0
22.40
9.8
30.4%
38.0
16.5
9.8
IBRD
156.0
67.8
50.1%
43.9
19.1
59.1%
199.9
86.9
51.9/.
Total Financing
311.4
135.3
100.0%
74.2
32.3
100.0%
385.6
167.6
100.0%
Local Govemments
Note: Local Govemment financial contribution towards by-passes is for landacquisition.
5.
29 -
PROJECT IMPLEMENTATION
A. IMPLEMENTING AGENCIES
5.1
Project. The project falls within the general responsibilities of BAPPENAS, Deputy Chairman
for Infrastructure Development.. Within the Transportation Bureau, the IWG for urban transportation
will oversee the planning and implementation of urban transportation programs. It will be the
responsibility of the IWG to steer and monitor the progress of the project, to ensure that it meets national
goals and objectives and to facilitate coordination among the different ministries and across departments.
The Directorate General of Highways (DGH) of the Ministry of Public Works is the Executing agency.
The Directorate of Urban Road Development (BINKOT) of DGH is the lead implementing agency for
the project. Implementation is to be managed through a Project Management Unit (PMU) to be
established within BINKOT and described in Section C.
5.2
Components. Existing agencies at the central and local government levels will be responsible
for the day to day implementation of individual sub-components, as follows:
A.
Road Construction. All sub-projects will be implemented directly by BINKOT. Land

acquisition and resettlement for schemes is the responsibility of the individual participating
governments.
B.
Urban Management and Quality of Life. This component and sub-projects will be
implemented by the participating local governments through BAPPEDA Tkll, except for
sub components on primary urban roads, which will be implemented by BINKOT.
Planning and design of the traffic and environmental management measures will be
undertaken by the DLLAJ, and implementation by the local government Public Works
Department (DPUK).
C.
Institutional and Human Resource Development. Overall responsibility for the subcomponent Cl program of strengthening the DLLAJ in the project towns will be the
responsibility of DGLT (MOC) assisted by DG PUOD (MHA). In individual local
governments responsibility will fall on the BAPPEDA TkII.
Responsibility for
strengthening BINKOT AMDAL section rests with BINKOT.
D.
Urban Road Program. This component will be implemented by BINKOT.
E.
Policy Development. Sub-component El - Urban Transport Policy and Programs will be

implemented by the BAPPENAS Urban Transport IWG. The lead agency for subcomponent E2 Planning, Programming and Execution of Urban Road Works will be
BINKOT.
B. IMPLEMENTATION PROGRAM
5.3
The Project Implementation Memorandum (PIM) will document the respective roles,
responsibilities and procedures for project implementation, in the form of a memorandum of
understanding between DGH, DGLT and the participating local governments. Annex 10 displays a draft
model PIM, agreed duringnegotiations.Signatureof thefinal PIM will be a conditionof effectiveness.
30 -
5.4
The Project Implementation Plan (PIP) is a technical working document for use by the PMU in
the project management of the implementation of all components of the project during the period of the
loan. The PIP will include the implementation schedule, procurement plan, disbursement schedule,
performance indicators and monitoring for the overall project and for individual sub-projects and
activities. A draft PIP is in the project file. The PIP will also indicate all implementation activities to be
undertaken in any GOI fiscal year. This information will provide the framework for the preparation by
the implementing agencies of annual work programs.
5.5
Annual Work Programs. Based on the provisions of the PIM, and the technical framework in
the PIP, Annual Work Programs (AWP) will be drawn up by BINKOT, DGLT and the participating local
governments. Through the AWPs, these implementing agencies would commit themselves to undertake
in a given year specific sub-projects and activities of the project, and to achieve specific targets. The
draft AWPs will be prepared by July 31 of each year, for presentation to the GOI/Bank Annual Review
Meetings in October, and finalization by the following April 15. It will be the responsibility of the PMU
to assemble the AWP's into a single document for presentation to the Annual Review Meetings, and to
update the PIP to reflect the finalized AWPs.
5.6
An outline of the AWP agreed at negotiations is presented in Annex 11. BINKOT is the only
executing agency with any expenditure scheduled for year 1, (GOI FY 96/97). Assurances were given
by GOI at negotiations that (a) the A WP for year 1 will be adopted by BINKOT not later than
November 1, 1996 and (b) commencing on April 5, 1997 and thereafter by April 15 in each year until
completion of the project, A WP will be adopted by BINKOT, DGLT and each of the participating local
governments. Executed A WP documents for each participating local government for year 2 of the
project (GOI FY 97/98) will be a condition of disbursement.
5.7
Annual Review Meeting. The annual review of the project will provide the opportunity to
review the progress of the implementation of the project, and to institute actions to mitigate
unsatisfactory performance. The review will take place by October 31 of each year, to coordinate with
the GOI Budget process, and to ensure appropriate provision is made for counterpart funds in GOI
budgets. The review will focus on the following:
a)
b)
c)
the evaluation of progress for the preceding fiscal year;

the draft AWPs proposed for the following fiscal year; and
performance monitoring targets.
The proposed arrangement for annual reviews by October 31 of each year were confirmed by GOI at
negotiations.
C. PROJECT MANAGEMENT
5.8
The PMU in BINKOT will be responsible for the day-to-day management of the project, and
ensuring the overall technical quality of the project implementation. Specific responsibilities of the
PMU include:
a)
preparing and maintaining a detailed project implementation schedule for all sub-projects
and components including key activities to be undertaken, and key milestones to be
achieved, in accordance with the loan agreement;
5.9
-3
1-
b)
ensuring that procurement of goods, works and consultant services uses standard documents
and follows Bank guidelines, particularly with regard to prequalification, shortlisting and
bid evaluation;
c)
establishing, maintaining and monitoring a uniform project accounting system including

preparation, consolidation and auditing of Project accounts;
d)
monitoring and reporting inputs and physical and financial progress towards the outputs of
all sub-projects and sub-components;
e)
advising on alternative courses of corrective action when physical or financial progress

towards project outputs deviates from agreed targets and limits;
f)
preparation of monthly, quarterly and annual reports on overall Project implementation, and
submission of these reports to the Bank for its review and approval;
g)
review of the AWPs, including targets for project output indicators, and their assembly into
a single document for the annual review meetings;
h)
finalizing TOR for consulting services, including for consulting services not financed under
this project for preparation of future SURIP projects;
i)
reviewing proposed sub-projects and submitting them to the Bank for approval;
j)
preparing and issuing guidelines and standard operating procedures for the implementation
of sub-projects by participating local governments;
k)
supervision of the implementation of environmental mitigation and management measures;

and
I)
establishing and maintaining the monitoring of project outcome indicators and other project
indicators.
The PMU will be supported by a consultant. The TOR and shortlist for these consultant services
are on the project file. Establishment of the PMU will be a condition of disbursement. At negotiations
it was agreed that the PMU will be established about one month after the signing of the Loan
Agreement, and that the consultants to assistthe PMU will be mobilizedabout one month after loan
effectiveness.
D. IMPLEMENTATION SCHEDULE
5.10
The project will be implemented over five years, starting in GOI FY 96/97 (year 1), and be
completed in GOI FY 2001/02 as shown in Annex 9. A project launch workshop will be scheduled close
to loan effectiveness. The program of civil works is scheduled to commence procurement after
negotiations, with contracts scheduled to be awarded once the loan is effective. For road schemes
subprojects scheduled to start construction in year 1, the criteria for approval listed in Annex 5 have been
met, and contract documents have been submitted to the Bank for review. Design for later year schemes
is largely complete, with all design scheduled to be completed by mid December 1996. Designs for
32 -
Component B 1 will be finalized during the construction of the bypasses, with construction starting soon
after the bypasses are open to traffic.
5.11
Outline TOR for all consulting services and TA have been prepared. Shortlists of consultants for
consulting services are being drawn up. The remainder of the request for proposals package for
consulting services will use standard documents.
E. PROCUREMENT
5.12
Procurement of works and goods will follow the "Guidelines for Procurement under IBRD Loans
and IDA Credits" dated January 1995 and revised in January 1996. Large civil works contracts costing
US$3 million equivalent or more and goods contracts costing US$250,000 equivalent or more would be
procured following International Competitive Bidding (ICB) procedures, using the Bank's standard
bidding documents (SBD). A general procurement notice would be issued in advance to encourage
participation of eligible parties. Domestic preference would be provided during bid evaluation at a rate
of 15 percent of the CIF price or the applicable customs duty, whichever is lower for local manufacturers
participating in the ICB procurement of goods. Smaller civil works contracts, valued at less than US
$3 million equivalent up to an aggregate amount of US$25.8 million, and goods estimated to cost less
than $250,000 equivalent, up to an aggregate amount not to exceed $550,000, may be procured under
National Competitive Bidding (NCB) procedures acceptable to the Bank. All consultant services under
the Bank loan would be procured by the responsible agency for each contract in accordance with the
"Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing
Agency" dated August 1981. The Bank's standard form of contract for Consultant's Services, dated
June 1995 will be used.
5.13
Prequalification. Invitations for prequalification or bids concerning large, specialized, or
important contracts (that is contracts estimated to cost the equivalent of US$10 million or more) would
be advertised as Specific Procurement Notices (SPN) in the U.N. Development Business and/or wellknown technical magazines, newspapers, and trade publications of wide international circulation.
Contractors for civil works of US$3 million equivalent or more in value would be pre-qualified in
accordance with procedures satisfactory to the Bank.
The Bank's standard documents for
prequalification will be used.
5.14
Procurement Review. The following will be subject to prior review by the Bank: civil works
contracts of US$3 million equivalent or more in value; goods contracts of US$250,000 equivalent or
more in value; and consultant contracts with an estimated value of US$100,000 or more for engagement
of firms and US$50,000 or more for the hiring of individuals. The first contract for civil works and
goods for each implementing agency would also be subject to prior review by the Bank, to assure use of
standard procedures and contract forms. The balance of contracts, including those reimbursed under
statements of expenditure, would be subject to selective post-review by the Bank. TORs for all
consulting services, including engineering design and construction supervision, studies, other technical
assistance, and all single source selections would also be subject to prior review by the Bank. Prior
review by the Bank is expected to cover approximately 80% of the total value of civil works contracts
financed by the project, and approximately 80% of the total value of goods contracts financed by the
project.
5.15
Procurement Design. Where technically feasible and administratively practical, sub-projects
have been packaged together for tendering. Procurement of physical components has been kept separate
for each agency, and for each level of government to avoid administrative delays and complex payment
33
procedures. Table 5.1 summarizes the procurement arrangements. Details of procurement packaging
are in Annex 12.
Table 5.1: PROCUREMENT
ARRANGEMENTS
(US$ million)
Expenditure
Category
ICB
NCB
Other A
106.7
(53.3)
0.0
0.0
2.7
(1.4)
22.1
(13.3)
0.0
(0.0)
0.0
(0.0)
N.B.F.
Total Cost
Civil Works
Centrally Contracted
Locally Contracted
Goods
109.4
(54.7)
22.1
(13.3)
3.4
0.6
0.0
(3.2)
(0.5)
(0.0)
0.2
(3.7)
4.2
9.3
(7.7)
5.7
9.3
(7.7)
5.7
(4.7)
(4.7)
0.6
(0.5)
0.6
0.6
(0.5)
0.6
(0.5)
(0.5)
Consultant Services
EngineeringServices (FED & Supervision)
Other Implementation Support TA
Institutional DevelopmentTA
Policy SupportTA
Training
2.2
2.2
(1.8)
(1.8)
Land
6.8
6.8
Taxes and Duties
6.7
6.7
13.7
167.6
(86.9)
Total Project Cost

-
~~~~~~~.,
110.1
(56.5)
-.. ... .....................
......
.. -.
25.4
(15.2)
18.4
(15.2)
... , ...
Notes: Figures in parentheses are amounts financed by IBRD.

a) Includes selection of consultants following IBRD guidelines.
b) Not Bank Financed (Goods NBF are vehicles for routine road maintenance).
F. DISBURSEMENTS
5.16
Disbursement Rates. IBRD loan disbursements will be made at the following rates for the
various expenditure categories as detailed in Table 5.2 below: (a) civil works - 50% of total costs for
works contracted by central GOI agencies, and 60% of total costs for works contracted by the
participating local governments; (b) goods - 100% of foreign expenditures, 100% of local expenditures
(ex-factory cost), and 65% of local expenditures for other items procured locally; (c) consultant services
and training - 80% of total costs for ervices contracted and training, and 100% of costs of services
contracted by the participating local governments. The estimated Bank disbursements by Bank fiscal
year based on a planned effectiveness date of October 1996 are given in Table 5.3. Disbursements by
Strategic UrbanRoadsInfrastructureProject
34 -
StaffAppraisalReport
quarter, compared to the standard profile are shown in Annex 13. The loan closing date is September 30,
2001.
(US$ MILLION)
TABLE 5.2: DISBURSEMENTS
DisbursementPercentages
Loan Amount
Category
l) Civil works for Sub-projects
a) Contracted by central GOI agencies
b) Contracted by the participating local
governments
2) Goods for Sub-projects contractedby
central GOI agencies
50.8
11.8
50% of total costs

60% of total costs
3.5
100% of foreignexpenditures
100% of local expenditures
(ex-factorycost), and
65% of local expenditures for
other items procured locally
3) Consultants' services
a) Contracted by central GOI agencies
b) Contracted by the participatinglocal
governments
11.3
2.1
80% of total costs

100% of total costs
1.8
80% of total costs
4) Training
5) Unallocated
5.6
86.9
TOTAL
Notes: Loan Amountfor categoriesI to 4 has beencalculatedby applyingthe disbursementrateto the totalcost excluding
physicalcontingencies.
BYIBRD FY (US$ MILLION)

TABLE 5.3: ESTIMATEDIBRD DISBURSEMENTS
Annual
Cumulative
1997
1998
1999
2000
2001
2002
10.0
10.0
22.6
32.6
20.9
53.5
18.8
72.3
12.1
84.4
2.5
86.9
Note: Disbursementsare basedon a plannedeffectivenessdate of October1996.
5.17
Special Account. In order to facilitate disbursements, GOI would establish a Special Account in
the amount up to US$7 million in Bank Indonesia, corresponding to four months of estimated
disbursements. This account should be maintained by the Director General of Budget in the Ministry of
Finance. The Special Account would be used for all eligible foreign and local expenditures.
Replenishment of the Special Account will be made on a monthly basis, or when 20% of the Special
Account balance has been used, whichever comes first.
35 -
5.18
Disbursements from the Loan for the following contracts would be made against full
documentation: (a) civil works contracts valued at US$3 million equivalent or more; (b) goods contracts
valued at or more than US$250,000 equivalent and (c) consultant services contracts with consulting
firmnsvalued at or more than US$100,000 equivalent and with individual consultants valued at more than
US$50,000 equivalent. All other disbursements, including first contracts by implementing agencies,
would be made against statements of expenditure for which relevant documents would be retained by the
MOF Directorate General for Budget Administration (DG TUJA) and the implementing agencies and
made available to the Bank for review upon request.
G. FINANCIALMANAGEMENT
5.19
Project Accounts and Audits. The BINKOT PMU will have overall responsibility for
establishing, maintaining and monitoring a uniform project accounting system. The PMU will also
prepare project accounts of all components implemented directly by the central agencies. Project
accounts for sub-components implemented by local governments will be the responsibility of the
structural financial agency within the local government secretariat. The BINKOT PMU will also be
responsible for consolidating quarterly project accounts and submitting them annually for consolidated
audit purposes by the BPKP Central Office. The PMU will also coordinate statements of expenditure
audits with the Directorate General for the Budget, Bank Indonesia and the State Audit Board's Central
Office. At negotiations, assurances were given by GOI that:
a)
b)
c)
the implementing agencies would keep separate accountsfor the proposedproject;

the project accounts, including documentation for statement of expenditures will be
audited annually by independent auditors acceptable to the Bank; and
the consolidated audit reports will be submitted to the Bank within six months after the
end of each fiscal year.
H.
PROJECT
MONITORING
5.20
The PMU will be responsible for monitoring project inputs, outputs and other indicators. Project
inputs include contracts awarded, contract commitments, disbursements, and person months of
consultant services. Project outputs are discussed below. Other monitoring indicators include noise and
air pollution (part of environmental monitoring), road accidents (part of social monitoring), and traffic
speeds. These indicators will be monitored to provide data on conditions before and after construction of
the road scheme sub projects. The PMU will be responsible for ensuring that this "before and after"
monitoring is undertaken. To assist in project monitoring the PMU will implement a management
information system that will monitor amongst other things; physical and financial progress in project
implementation, contract commitments, disbursements, environmental management and resettlement
action plans.
5.21 Project Outputs. Table 5.4 shows outputs for each project component, and the target indicators
for satisfactory implementation. The satisfactory achievement targets for year I are contained in the
draft AWP for year I agreed at negotiations. Annual targets towards the achievement of these outputs for
the second and subsequent years of the project will be agreed during the Annual Reviews. The PMIUwill
be responsible for monitoring and reporting on progress towards these output targets. The level of
achievement of the outputs and any corrective actions required as a result of unsatisfactory achievement
will be one of the items for the Annual Review.
36 -
5.22
Environmental Monitoring. The environmental management and monitoring procedures for
this project draw on the experience gained by Bina Marga and the Bank in the implementation of HSL2.
Environmental Protection Measures during construction will be included in the civil works contract
documents, and bonded. The TOR for the consultant to support the PMU includes a requirement for
foreign and local environmental officers to supervise implementation of environmental and social
mitigation measures.
5.23
As part of the environmental and social monitoring of sub-projects provided for within the
AMDAL procedures, it will be necessary to determine noise, air quality and socio-economic impacts at
selected sites. Data would be collected on actual levels as well as on community perception. As traffic
volumes will be the most significant component of noise generation, traffic data will also be collected as
part of the one monitoring program. It is envisaged that a local consultant will carry out the program
with support from the environmental officer in the PMU. The AMDAL section in BINKOT is
developing its own capability to carry out and manage project monitoring according to recommendations
in UPL and/or RKL reports. The TA being provided for institutional strengthening of BINKOT AMDAL
section will support this capacity building.
5.24
Social Monitoring. As part of the social monitoring of sub-projects provided for within the
AMDAL procedures, it will be necessary to determine socio-economic impacts of selected sites. Data
will be collected on actual impacts as well as on community perception. In particular, the socioeconomic conditions of project-affected persons who are resettled will be surveyed one year after
resettlement, while all affected persons will be surveyed one year after the completion of the sub-project
affecting them. Road accidents will be monitored, using data collected as part of the normal operating
procedures of the traffic police.
1. REPORTING
5.25
The PMU will be responsible for preparing monthly, quarterly and annual progress reports
covering all SURIP components. The PMU will consolidate govemment agency and consultant monthly
reports into an overall monthly progress report for submission to BINKOT management. These monthly
reports will form the basis for monitoring progress of the project.
5.26
Quarterly Reports. These will be prepared and submitted to the Bank by the PMU on the basis
of inputs from the various central, Kabupaten and Kotamadya implementing agencies. The quarterly
reports will include summaries of progress of each project for submission to DGH, MPW, BAPPENAS,
MOF, and the Bank. The reports will include an overall summary and cover progress on:
a)
b)
c)
d)
e)
physical progress of each component;

financial progress of each component, including project costs, contract commitments, and
forecast disbursement schedule;
consulting services, including reports produced, and details of Steering Group and
Technical Committee meetings;
compliance with loan covenants; and
a list of action to be taken by the various parties.
Quarterly reports will be submitted within 30 days from the end of each quarter, starting with the quarter
ending in September 1996.
37 -
5.27
Annual Reports. These reports will be prepared and submitted to the Bank by the PMU, on the
basis of reports prepared by the implementing agencies, no later than July 31 of each year. They will
contain similar data to the data contained in the quarterly reports, and will include an evaluation of
progress relative to the agreed Performance Indicator targets. The annual reports will provide the basis
for the annual reviews of project implementation. Assurances were given by GOI at negotiations that
the Inspectorate General of MPPWand the relevant kabupaten or kotamadya inspectorates will carry
out annual technical audits during project implementation by October 31 of each year.
5.28
Implementation Completion Report. On completion of the project and within six months of
the Loan closing date, BINKOT, together with the participating Kabupatens and Kotamadyas, will
prepare an Implementation Completion Report for review by GOI and the Bank.
J.
OPERATIONS
AND MAINTENANCE
5.29
The new road scheme sub-projects will be designated as national roads and DGH will be
responsible for maintenance. The Road Sector study found that overall the level of funding for
maintenance of national roads was adequate. The existing national roads passing through towns, will be
handed over to Kotamadya/Kabupaten once the bypasses are opened to traffic. DGH will be relieved of
the responsibility of maintaining these roads. As a result there will be a minor increase in the lane
length of road that DGH has to maintain, the maintenance of which can be absorbed by DGH through
ongoing efficiency measures.
5.30
The traffic management plans prepared under component BI of the project are designed to
ensure that the most effective use and efficient operation of the road networks in the project towns once
the by-passes are opened to traffic. The extra road length will represent a very small percentage of the
road length in the Kotamadya. Based on findings of the Road Sector study, the local governments should
be able to find the resources to maintain these roads through efficiency gains in their overall road
maintenance programs. It will be necessary to ensure that the local governments have sufficient
resources to maintain the extra road length. Routine road maintenance equipment and training for
equipment operators is to be provided under the project to assist the local government in this task.
BINKOT will assess the technical and financial capabilities of project cities for maintaining additional
roads. Depending on the results of this assessment, BINKOT will initiate a dialogue with the Ministry of
Home Affairs regarding an increase in the INPRES grant reflecting the increase in road network assets.
K. BANKSUPERVISION
5.31 The project will require about 20 to 25 staff weeks of Bank supervision during the first and
second years of the project, and 15-20 staff weeks for the following years. Details are shown in
Annex 14. These estimates assume that supervision missions for the proposed project will be combined
with missions for preparation of possible future SURIPs in Bank FY97 and 98 and missions for
supervision of these projects in later years. Three missions a year are planned in FY97 and 98 as
analysis by OED suggests that extra supervision during this period assists in achieving satisfactory
project outcomes, with two missions a year thereafter. Typically one mission in October would conduct
the Annual Review, while a mission in April would review the final AWPs. The annual review mission
is scheduled to coordinate with GOI budget process to ensure appropriate provision is made for
counterpart funds in GOI budgets. Supervision missions will include engineering, transport planning,
environmental and resettlement expertise. Other skills would be added as required, particularly for the
annual review. Between missions, supervision activity will include pre-construction screening of later
year sub-projects, review of procurement documents and procedures and physical progress on site, and
- 38 -
review of TA outputs. Much of this routine procurement and site supervision work will be undertaken
by staff from RSI Jakarta. These proposed arrangements for project supervision were confirmed by
GOI at negotiations.
TABLE 5.4: PROJECT OUTPUT INDICATORS

Components
Output
Achievement Targets
SevenRoad Sub-Projects
All schemesbuilt to specification,on time and within estimated

cost (* I0%)
BI
Traffic and environmentalmanagementplan, (including

civil works) for seventowns.
Plan preparedand works implementedin anytown within two

yearsof opening dateof bypass,to agreedspecificationand cost.
Plansto include provisionsfor pedestrians,NMV and public
transport.
B2
StructurePlanReview for sevenproject towns.
All reviewscompletedby mid 1998,with new roadshown on

plansand IUIDP assumptionsmodified.
B3
ROW for sevenroadschemesprotected.
1. Local govemmentregulation (Perda)for individual

subprojectsby opening dateof road.
2. Land useplansshowingacceptablelocationsfor development
alongsideroad preparedby road openingdate.
CI
DLLAJ Strengthenedand stafftrained in the eight

participating local governments
All DLLAJ staff given appropriatelevel of training early enough

to permit them to contributemeaningfullyto preparationof
componentB I.
C2
StrengthenedBINKOT AMDAL section.
TA provided in time to permit BINKOT sectionto take lead role

in environmentalmanagementand monitoring of sub-projects.
Urban RoadProgram
SURIP andRoad SectorStudy network analysisupdatedby end
1997.
El
UrbanTransportPolicy and Programs
Policy documentpreparedfor IWG by end 1997.
E2
BINKOT Guidelines
Drafts of threeguidelines (feasibility studies,functional design

guidelinesandeconomicevaluation) preparedunder this TA
sub-componentin time for preparationof a possiblesecond
SURIP. Drafts of environmentand resettlementguidelines
preparedunder TA sub-componentC2, traffic management
guidelinesunderTA subcomponentB I, and schemeplanning
and designscheduleguidelinesby the PMU..
6.
39 -
PROJECT JUSTIFICATION AND RISKS

A. POLICY CONTEXT
6.1
Overall, the project is expected to contribute towards the further development of an
environmentally sustainable transport policy in a country facing increased motorization, and to the
further transfer of responsibility for the implementation of such policy to local government. Benefits
will flow to producers and consumers through reduced transport costs. Residents of the towns being bypassed will benefit from a safer and more pleasant urban environment. The overall level of road safety
should be improved.
6.2
Linkage to Country Assistance Strategy (CAS) and Sector Work. From a national
perspective, the overall project assists in the implementation of GOI urban and transport sector policy,
with the different components supporting implementation of specific policy initiatives as well as the GOI
policy on decentralization. The project also supports the CAS by assisting in the reduction of transport
costs (and hence enhancing competitiveness), and by taking steps to improve environmental management
and decentralized public sector management.
B. ECONOMIC JUSTIFICATION
6.3
The assessment carried out during the preparation of this project found that the project corridor
has the most pressing congestion problems among the national urban road sections. A number of
regional studies have forecast a continuing growth in traffic in the corridor, with little change in road
share. The road schemes proposed are consistent with the plans and recommendations of the NJTC
Study, and the HLRIP. They will complement the interurban road capacity expansion in the NJTC
funded under the recently approved ADB Loan No. 1428 -INO. Justification by component is discussed
below.
6.4
Analysis of Alternatives. Potential options to address the identified congestion problems are:
(a)
(b)
widening the existing roads, and

building a new road on a new alignment.
Within option (b), alternatives were considered for design and construction standards, staging of
construction, and financing as a public or toll road. The road scheme subcomponent designs adopted
represent the least cost options over a 20-year period on the basis of engineering and economic
judgment. The costs include construction, land acquisition, resettlement, environmental mitigation
measures and annual maintenance costs.
6.5
Except in Cirebon, Pemalang and Semarang, the option of widening the existing road was not
considered feasible due to the extent of resettlement of residents and demolition of commercial property
and resultant high land acquisition costs. The alignments for the new roads at Weleri, Kaliwungu and
Kudus were selected and partially constructed by the local government prior to Bank identification of
this project. These alignments were reviewed during site visits and considered to be generally
acceptable. A number of changes have been incorporated at the request of the Bank to reduce
environmental impacts and to improve the network operating efficiency. Alternative alignments were
40
investigated at Pemalang for part and at Demak for all of the bypass, to reduce environmental impacts,
construction and land acquisition costs.
6.6
The highway design standards are a function of the volume and vehicle mix of traffic expected to
use the road links over the initial ten-year road pavement design life, and chosen so as to minimize
construction and maintenance costs. The 40 meter ROW width has been selected based on a 20 year
initial design life for the road, to protect the road investment for at least this period The option of a
narrower (22 meter) ROW was considered but rejected as likely to result in the road gradually taking on
a local access road function so that in five to ten years another by-pass would be required. Options for at
grade or grade separated crossings of railways and local roads, and staged construction have been
evaluated to arrive at the preferred design and staging of the individual road schemes. Analysis of staged
construction involved evaluation of the NPV for the initial construction of a two or four lane main road,
and consideration of timing of construction of frontage access roads within the 40 meter ROW.
6.7
Potential for Private Sector Participation/Toll Roads. Current toll road proposals relevant to
the road schemes in this proposed project are described in Chapter 4. Tolling the project roads would
leave the existing congested link for traffic unwilling to pay the toll. Only at Demak and Kudus could
the alignments proposed be considered for inclusion in the Semarang - Kudus toll road. The private
sector would require the financial viability to be firmly established, which is not the case for the
proposed project roads. Analysis indicates that the financial rate of return for individual sub-projects
under this project will be below the 25% sought by many institutional investors for a road project.
6.8
The approach adopted in this project (and for ADB Loan 1428-INO) was therefore to accept that
the "free" public road improvement would precede the parallel toll road and to assess the potential
diversion of traffic to the toll road at various opening dates for the toll road. For economic analysis of
the road schemes the opening dates assumed (and GOI targets) are Cirebon 2002 (1998), Pemalang 2006
(2002), Weleri and Kaliwungu 2005 (2003), Demak and Kudus 2007 (2003). There is some risk that
construction of the sub-project will delay investment in toll roads, since the GOI does not (and should
not) give a "traffic guarantee" to investors. However, GOI has already committed itself to investments in
the interurban sections of the public road in the corridor which are likely have a greater impact on
investor interest.
6.9
Fiscal Impact and Cost Recovery. The Road Sector Study discusses the future fiscal impact of
road programs at a national level. At a local level the transfer of the existing national road to local
government following opening of the bypass will increase local maintenance expenditures. The impact
is not considered to be significant, but is to be reviewed by BINKOT so that the central government
budget transfers can be adjusted if necessary (see Section 5.30).
6.10
Beneficiaries. Direct beneficiaries of the road schemes will be two groups. First, the road users
who will benefit from lowered Vehicle Operating Costs (VOC) and travel times. Second, the residents
of the newly by-passed towns of Pemalang, Weleri, Kaliwungu,, Demak and Kudus will benefit from the
reduction in through traffic. The quantifiable economic benefits to road users have been calculated using
a standard methodology. Existing traffic likely to use the by-passes has been estimated from Origin and
Destination surveys of existing traffic entering and leaving the towns. Future traffic levels have been
estimated by applying growth factors to these traffic levels of 6.5% a year from 1995 to 2003, and 5.5%
thereafter. The growth factors are within the bounds of traffic projections in four previous studies in the
corridor, as discussed in Chapter 3. The analysis included sensitivity tests on these traffic projections.
Strategic Urban Roads Infiastructure Project
- 41 -
6.11
Benefits. Benefits are a function of changes in VOC and in journey times for vehicle occupants
making business trips (trips in the course of their work). 25% of trips by vehicle occupants are assumed
to be for business, and to have an economic value of Rp 1020/hour per bus passenger and Rp 6000/hour
per car occupant. Travel time savings for other trips are not included. Travel times have been
determined by applying speed/flow curves from the Indonesian Highway Capacity Manual to the forecast
traffic flows. Based on these flows, average speeds are expected to increase from 32 km/h to 54 - 60
km/h in the year of opening. VOC have been derived using the VOC module (VOCM-4) of the Bank's
Highway Design and Maintenance Model (HDM III). Basic road user cost data have been obtained from
the IRMS VOC Parameter File, and updated to September 1995. Based on international experience, it is
expected that there will be a reduction in fatalities, and a reduction in accident rates (fatalities/vehicle
km) from the new road construction.
6.12
Economic Rates of Return (ERR) and Net Present Value. The ERR for individual road
scheme sub-projects are shown in Table 6.1. All road sub-projects have a positive net present value
(NPV) with a discount rate of 15% with the value of time savings only for business trips included in the
benefit stream. When all such time savings are excluded from the benefits, the NPV is positive with the
lower discount rate of 10%, except for the Kaliwungu and Demak projects. The estimated accident
reduction benefits for the sub-projects at Cirebon, Pemalang, Semarang and Weleri are between 7% and
25% of VOC benefits, at Demak 62% and at Kudus 75%. As the Kaliwungu bypass is longer than the
existing road, the overall accident benefits are estimated to be much higher than the VOC benefits.
TABLE
6.1: SUMMARY OF ECONOMIC ANALYSIS
(Costs and NPV in Rp million)

Benefits
Sub-Project
Cirebon Bypass
Pemalang Bypass
Weleri Bypass
Kaliwungu Bypass
Semarang Northern Ring Road
(Section I and 2)
Demak Bypass
Kudus Bypass
ERR
Time Savings
as (%) of
Benefits
Total Cost
NPV
21,613
25,739
17,013
23,825
55,220
12,257
21,835
12,461
16,308
30,243
24%
28%
24%
27%
21%
67%
55%
46%
79%
35%
29,853
25,660
3,782
35,430
17%
30%
56%
61%
Notes: Cost includesconstruction,ROWand resettlement

costs.
Benefitsincludetraveltime savings.
TimeSavings% is the contributionof PresentValue(PV)of passengertimesavingsto total PVof allbenefits.
ERR = Economic Rate of Return.
NPV = Net Present Value@ 15% discount rate.
6.13
Sensitivity Analysis. Sensitivity tests were undertaken to test the robustness of the results
against changes in key input parameters: average speeds, traffic growth rates, diversion to toll roads, and
the percentage of trips with economic value. The ERR's remain above 15% even if about half the
envisaged gain in vehicle speeds fails to materialize i.e. average speeds on all road sub-project schemes
could be reduced by 10 km (to 44-50 km/h). The Demak bypass is most sensitive to traffic volumes, a
reduction in traffic volumes in traffic growth rates to 5.5% a year from 1995 to 2003, and 4.5% thereafter
would reduce the ERR to around 15%. In the case of the Cirebon bypass, with these lower traffic growth
- 42 -
rates and a 60% diversionof bypass traffic to the proposedtoll road, (in place of the 40% assumed for
the main analysis),the ERR would also be reducedto around 15%. The other subprojectswould still be
viable. In the main analysis,it is assumedthat 25% of all passengertrips have economicvalue. Tests
were carried out to calculatethe minimumpercentageof passengerbusinesstrips required to achievean
ERR of 15%. For Cirebonand Pemalang,the value couldbe about half that in the main analysis (1014%), in Semarangit could be about a third lower, whileat Demak and Kudus, it could be reduced to a
quarter of the value in the main analysis. Further details of the economicevaluationresults are given in
Annex 15.
6.14
Analysis of Institutional Capacity. As reported in Chapter IV, Bina Marga has the capacity to
deliver road construction projects on time and to an adequate quality standard. BINKOT was able to
successfully implement the Regional Cities Urban Transport Project, with a PMU supported by
consultants. It is considered that with similar arrangements, BINKOT has the capacity to implement this
proposed project. The one area where BINKOT is still developingcapacity is the environmentalfield.
Support for the development of this capacity is provided in this proposed project While local
governments are generally able to undertake the smaller scale civil works envisaged in Component B,
for reasons set out in paragraph 1.22, they currently lack the capacity to plan, design and implement local
transport policies and traffic management schemes. Support for the development of this capacity is
provided in this proposed project.
6.15
Poverty Analysis. No specific analysis has been undertaken of the benefits (or costs) of the
project to the low income population of the project towns. (Nor has the extent and spatial distribution of
the low income population of project towns been surveyed except as part of base line surveys for land
acquisition). Crossing facilities for pedestrians and NMV are included in the road schemes. Provision
has been made in the design of these road schemes for construction of footpaths and NMV frontage roads
as required. Sub-component B 1 is specifically designed to benefit pedestrians and NMV users.
6.16
Environmental Benefits. The environmental aspects of the proposed project are discussed in
Chapter 5. Residents of the five by-passed towns (Weleri, Kaliwungu, Pemalang, Demak, & Kudus) are
expectedto benefit through reduction of accidents,air pollution and noise. A monitoring program is
being developed to determine outcomes. However, there is insufficient data available on Indonesian
conditions to quantify these benefits.
6.17
Component C: Institutional and Human Resource Development, will increase the overall
effectiveness of the urban road investment program, and the sustainability of transport policy, as well as
reduce expenditure on foreign consultants. The benefits will be in improvements in the allocation of
funds, and greater efficiency in the use of funds at the implementation stage.
6.18
Component D: The Urban Road Program. Improvements in the allocation of funds for road
works was one of the five areas suggested in the Road Sector Study to meet the long term challenges in
the sector. Increasing funding for urban roads is one of these challenges. This component will assist
decision making on the size of the overall budget for urban road development, as well as the allocation of
resource by geographical or administrative area and road type. It will also permit the selection of
individual projects or programs targeted to specific regions in response to GOI initiatives, or targeted to
address, within a town or region, specific GOI policy initiatives or IUDP. Rolling programs facilitate
project preparation, and the efficient use of road planning and design resources.
6.19
Component E: Policy Formulation. The sector study has forecast increases in urban travel
demand. The benefit of an urban transport policy is that it will provide the framework for a
43 -
comprehensive approach to controlling congestion costs and allocating resources for investment in and
management of urban transport and urban development. The guidelines and manuals will assist in the
implementation of this policy as well as in improving efficiency in the use of funds for urban roads at the
implementation stage.
C. SUSTAINABILITY
6.20
The sustainability of the project has been assessed in relation to the categories of financial,
environmental, social, and institutional sustainability adopted in the Bank's Sustainable Transport:
Priorities for Policy Reform (May 1996).
Financial Sustainability.
more cost effective.
The project is designed to assist financial sustainability by making transport
Environmental Sustainability. The project is designed to be environmentally sustainable by:

* placing emphasis on integrating environmental considerations into the design process, from the
stage of problem identification through to construction and operation of individual road subprojects;
* implementing urban environmental management measures designed to ensure that the road space in
towns is not used simply to accommodate extra vehicular traffic; and
* strengthening of environment management capability in BINKOT.
Social Sustainability. The project is designed to be socially sustainable by:
* placing emphasis on avoiding resettlement in the planning and design of individual road schemes,
and in designing and implementing quality resettlement action plans as an integral part of road
scheme implementation;
* including provision for investments to benefit pedestrians and NMT users; and
* promoting local government participation in design and implementation.
Institutional Sustainability. The project is designed to produce a sustainable improvement in the
management of the urban transport sector by:
* placing emphasis on the institutional and human resource development of the responsible agencies,
and through preparation/updating of guidelines combining international good practice and local
experience; and
* supporting GOI initiatives to decentralize responsibility for urban transport infrastructure and
services from central to local government level, and in assisting central and local government
agencies to fulfill their new roles.
D. RisKs
6.21
Only Civil Works Implemented. Based on past experience, the major risk of the project is that
inadequate attention will be paid to the institutional development, HRD and policy components (C, D
& F) which may compromise the sustainability of the project. The PIM and AWP are designed to
minimize this risk and to ensure the ownership of, and commitment to these components by their
implementing agencies. The annual review process is intended to focus attention on components where
progress is unsatisfactory, and to institute corrective actions. Funding for the road scheme subprojects is
conditional on the DLLAJ (which will benefit from the component Cl and D) being operational.
44
6.22
Component B Not Implemented. There is also a risk that the sub-projects and activities in
Component B will not be implemented by the participating local governments. The PIM and AWP are
designed to minimize this risk and to ensure the ownership of and commitment to the implementation of
Component B by the participating local governments. The other risks of the project relate to the road
schemes themselves.
6.23
Construction Costs and Timing. To minimize construction cost overruns, cost estimates are
based on Final Engineering Designs to an agreed design specification, and +/-10 % cost limits.
Construction supervision and project management arrangements within the Project Implementation Plan
are designed to closely monitor actual costs during construction. Part of this risk is reduced by
diversification. As this project contains a series of separate road schemes, any problems with one should
not transfer to the others and the risk to the overall project from any difficulty is reduced. The main
timing risk relates to land acquisition for critical small sites. Completion of land acquisition and
resettlement is one condition of issuance of a NOL for starting bidding on civil works.
6.24
Traffic Risk. There are a number of interconnected traffic risks: (a) overall traffic growth will
be less than forecast; (b) the amount of traffic using the by pass will be less than estimated; and (c) the
toll roads will attract more traffic than assumed. To minimize these risks the traffic growth rates in the
corridor used are based on past trends and are considered conservative. These growth rates are a
function of the macro-economic growth rates and are therefore susceptible to changes in levels of
economic activity. The by-passes all offer faster routes and easier driving conditions than the routes they
replace. To minimize the risk that through traffic will not use the bypass, traffic calming measures in the
town centers will be implemented under Component B to discourage (but not prevent) through traffic
from using the existing roads.
6.25
The extent of diversion to the toll roads (when opened) assumed for the economic analysis is
greater than the proportion of travelers on recently opened interurban toll roads. In the base case
evaluation it has been assumed that the opening date of the toll road sections are later than the GOI target
date, and that these roads will divert 40% of the forecast through traffic using the bypass. (The 40%
diversion factor is at the mid point of the range of diversions assumed by ADB for the evaluation of
interurban roads in the corridor.) Sensitivity tests were undertaken assuming the GOI opening date and a
larger diversion.
6.26
Toll Roads. There is a risk that the parallel links in the toll road network will be constructed by
or earlier than the GOI target opening date. Earlier than targeted opening of the toll road would reduce
the immediacy of the need to build the proposed schemes, and would lead to more staged construction.
Based on experience to date with toll roads in Indonesia, the risk of an early opening is considered low.
6.27
Ribbon Development. Experience in Indonesia suggests that the new roads could encourage
ribbon development alongside, encroachment on agricultural land and creeping urbanization between the
existing town and the bypass, so that eventually another bypass would be required. To minimize this risk
the roads are being designed with a ROW sufficient to provide access roads for frontage development at
a later date if necessary to protect the primary function of the by-pass. Land is being acquired for this
purpose under this project, or safeguarded through local regulations. Component B is also designed to
provide means of handling these development pressures in an environmentally sustainable way.
7.
7.1
45
AGREEMENTS REACHED AND RECOMMENDATION
Agreed Actions. During negotiations, agreements were reached on the following matters:
a)
Project outcome indicators and that project outcomes will be surveyed one year after
completion of any sub-project (para 4.10);
b)
Selection and carrying out of sub-projects in accordance with criteria acceptable to the Bank
(para 4.13 and 4.16);
c)
Annual Work Programs (AWP) to be adopted by BINKOT, Participating Local

Governments and DGLT by April 15 in each year (para 5.6);
d)
Carrying out of annual reviews of Project Implementation (para 5.7);
e)
Use of the Bank's 1995 Procurement Guidelines (revised in January 1996) (para 5.12);
f)
The project's implementing agencies will keep separate accounts, that will be audited
annually and that the annual audit report will be furnished to the Bank not later than six
months after the closing of the fiscal year (para 5.19);
g)
The Inspectorate General of the Ministry of Public Works and the relevant Kabupaten as
Kotamadya inspectorates will carry out annual technical audits during project
implementation (para 5.27); and
h)
Proposed arrangements for project supervision (para 5.31).
7.2
The condition of effectiveness are: (i) the issuance by the Chief Executives of each of the
participating local governments of the implementation guidelines for resettlement acceptable to the Bank
and (para 4.31); and (ii) signature of the PIM (para 5.3).
7.3
The conditions of disbursement are:

a)
for civil works and goods, selection of a sub-project in accordance with criteria
acceptable to the Bank, and Bank approval of the sub-project and, where applicable,
implementation of the RAP acceptable to the Bank (paras. 4.13 and 4.16);
b)
for civil works and consultant's services, that the 97/98 AWP, acceptable to the Bank,
has been adopted by relevant participating local governments (para 5.6); and
c)
for civil works and goods, establishment of the PMU (para 5.9).
7.4
With the above agreements, the project would be suitable for a Bank loan of $86.9 million with a
standard amortization term, grace period and interest rate for fixed rate US dollar single currency loans
with an expected disbursement period of 3-6 years.
- 47 -
STRATEGIC URBAN ROADS INFRASTRUCTURE PROJECT (SURIP)
STAFF APPRAISALREPORT
ANNEXES
1. URBAN INFRASTRUCTURE
AND ROADPROJECTS
2. PERFORMANCEINDICATORS
3. COMPONENTA: SCHEMEDETAILS
4. COMPONENTA: SURIP ROAD DESIGN STANDARDSAND GUIDELINES
5. COMPONENTA: CRITERIAFOR APPROVALOF ROAD SCHEMESUB-PROJECTSFOR FUNDING
6. COMPONENTB: URBAN MANAGEMENTAND "QUALITYOF LIFE" IMPROVEMENTS
7. OUTLINESCOPEOF POLICIES,PROCEDURESAND GUIDELINES
8. ENVIRONMENTALIMPACTASSESSMENT
9. PROJECTCOMPONENTAND COST SUMMARY
10. DRAFTMODEL PROJECTIMPLEMENTATION
MEMORANDUM
11. OUTLINEOF ANNUALWORK PROGRAM
12. PROCUREMENTPACKAGINGAND PRIORREVIEWCONTRACTPROFILE
13. DISBURSEMENTS
14. SUPERVISIONSTAFFINGAND SCHEDULE
15. ECONOMICANALYSIS
16. DOCUMENTSON FILE
- 49 -
ANNEX 1
URBAN INFRASTRUCTUREAND ROAD PROJECTS
Loan No.
FY
Effect.
Closing
Date
1040
1049
1336
1653
1709
1972
2236
2275
2408
2632
2725
2816
2817
2932
3219
3246
3304
3340
3726
3749
3854
4017
1975
1975
1977
1979
1981
1982
1983
1983
1984
1986
1986
1987
1987
1988
1990
1991
1991
1991
1995
1995
1996
CO1540
C02600
C03880
L12360
L12365
L16960
L16965
L20830
L20490
L24040
L27170
1969
1971
1973
1976
1976
1979
1979
1982
1982
1984
1986
1981
1982
1984
1987
1987
1988
1991
1990
1991
1993
1992
1991
Oct. 94
Mar 96
Dec 96
Dec 96
Dec 96
Dec 96
Sept 99
Sept 99
June 01
March 00
12/31/75
5/14/79
5/2/79
5/15/81
12/31/82
5/15/81
12/31/85
12/31/87
6/30/90
12/31/88
12/31/90
L28810
L31330
L37120
L34900
L35790
L35890
L37320
1988
1990
1994
1992
1993
1993
1994
TOTAL
6/30/94
6/30/95
12/31/99
9/30/96
6/30/98
12/31/96
6/30/99
Project Name
Jakarta Urban Development

Five Cities Water Supply
Second Urban Development
Third Urban Development
Second Water Supply
Fourth Urban Development
Jakarta Sewerage/Sanitation
East Java Water Supply
Fifth Urban Development
E. Java Water Supply 11
Housing Sector Loan
Urban Sector Loan
Reg. Cities Urban Transport
Jabotabek Urban Developmt
Jabotabek Urban Dev. 11
Jabotabek Urban Dev. III
East Java/Bali UDP
Sulawesi/lrian Jaya UDP
Surabaya UDP
Semarang/Surakarta UDP
Kalimantan UDP
East Java UDP 11
Roads Emergency Rehab.
Highway 11
Highways III
Highways IV
Highways IV
Highways V
Highways V
Rural Roads
Jakarta Cikampek
Highway Betterment
H'way Maintenance &
Betterment
Rural Roads 11
Highway Sector
Highway Sector 11
Kabupaten Roads III
E. Indonesia Kabupate
Earthquake Reconstruction
Kabupaten Roads V
Original
Loan
Amount
PPAR
PCR/ICR
Report
(USSM)
No.
25.00
14.50
52.50
54.00
36.00
43.00
22.40
30.0
39.25
43.30
200.00
270.00
51.00
150.00
190.00
61.00
180.30
100.00
175.00
174.00
136.00
142.7
32.58
34.31
14.00
83.80
46.20
10.58
119.42
100.00
85.00
240.00
300.00
4620
6256
6329
8583
8622
8583
12150
10853
11501
13637
13296
10388
15245
190.00
350.00
350.00
215.00
155.00
42.10
101.50
4659.44
Year
1983
1986
1986
1990
1990
1990
1993
1992
1992
1994
1994
1992
1995
50ANNEX2
(Page I of 2)
PERFORMANCE
INDICATORS
1.
Indicators for monitoring and rating project outcomes against the five project
development objectives as agreed at negotiations, are shown in Table 1. The baseline
situation is the current position identified during project preparation, against which the
progress of the project towards the target outcome will be assessed. This baseline
position has been identified for all objectives. For objectives a and b the baseline position
will be precisely defined through surveys.
2.
The targeted outcomes represent the ideal outcome, if the project performs well,
and GOI and the Bank respond well to events occurring during the life of the project,
including unforeseen events over which they may have limited control. Satisfactory
outcomes have been determined on the basis of those milestones in project
implementation over which GOI and the Bank can exercise some control, and can take
corrective action to mitigate poor performance during the life of the project. Reviewing
performance and taking corrective actions is one focus of the annual review.
3.
The monitoring indicators chosen for intermediate years for objectives a and b are
similar to the baseline indicators. For objectives c to e, monitoring will be against
defined milestones in the implementation schedule towards the target outcome.
- 51 ANNEX2
(Page 2 of 2)
PERFORMANCE INDICATORS: RATING SYSTEM

Objective
Baseline Situation
Intermediate Years
Implementation
Completion
Suggested Ratings
Report
a) ReduceTraMc
bottleneckson the
national road network
in selectedurban areas
in the N.Java corridor
Trafficcountsand Origin
Destination(OD)surveys
on existingroadand
projectionsof trafficon
newroad done for
economiccvaluationas
part of project
preparation
Trafficcountsand license
plate surveyson bypassand
existingroadone year after
openingdate of bypass subproject
Trafficcounts and
licenseplate surveyson
bypassand existingroads
HS-AIIseven bypasses
attract80%/of through
trafficand operatewithout
congestion(V/C ratio S 0.8)
over at least 80%/of their
length
S-Fiveto Six bypasses
US-Fourbypasses
HU-Threeor less
b) Address the
environmental and
social issues associated
with the usage of the
national road network.
Baselineposition
establishedby socioeconomicsurveysof
projectaffectedpersons
(PAP)
Socio-economicsurveysone
year after resettlement
Socio-economicsurveys
onlyof thosePAP
requiringfunthersupport
as shown by surveyin
intermediateyear
HS-AllPAP betteroff
S-NoPAPworse off
US-10f%PAP worseoff
HU>ION.worseoff
c) Assist GOI in the

formulation and
articulation of urban
transport policy,
Baselineis that there is

no singleunifiedGOI
UrbanTransportPolicy
Reviewof progresson
milestonesto preparationas
partof annualreview
process. Possiblemilestones
1. Draftpolicyproducedfor
IWGusingTA
2. Draftpolicyendorsedby
IWGafterconsultationand
discussion
3. Policyendorsedby
BAPPENASfor inclusionin
REPELITAVIl
4. UT Policyincorporated
intoTransportSectorpart of
REPELITAVI[
Reviewof status against

milestones
HS-GOIUT Policy
incorporatedin REPELITA
Vn of the TransportSector
S-UT PolicyStatement
endorsedby BAPPENAS
US-Draftnot agreed
HU-NoDraftStatement
producedby IWG
d) Assist GOI in the

process of
decentralization of
responsibilityfor urban
transport.
BaselinePositionis that
work is undertakenby
centralagencies,andthat
there are DLLAJonly in
participatinglocal
govemmentsof Kendal
and Kudus
Reviewof progresson
milestonesas partof annual
review. Possiblemilestones
1. DLLAJoperational
2. TA mobilized
3. StaffTrained
4. Staffpaticipated In
preparationand
of
implementation
ComponentB.
Reviewof participation
byeach of the eight
DLLAJin the
preparationand
implementationof
ComponentB.
HS-Alleight DLLAJ
paticipated in at least 75%
of preparationand
implementationactivities.
S-6 DLLAJparticipatingin
50%of activities
US-4or less DLLAJ
participatingin 50%of
actvities.
HU-DLLAJoperational,but
e) Strengthen
capabilities of GOI's
central agencies
involved in urban road
development and
management
Baselinepositionto be
establishedby detailed
reviewof work of
BINKOTAMDAL
Section. General
understandingis that the
section is reviewing
documentsbut is not
really influencing
Reviewof progresson
milestonesas part of the
annualreview. Suggested
milestones
I. Stage11TA mobilized
2. 25/S0%/5/75W100%
of
BINKOTroadschemes
proactivelyreviewedand
designinfluenced
Detailedreviewof tasks
performed nd
percentageof BINKOT
schemespro-atvely
reviewedand design
influencedin preceding
12months.
not paticipating
I planning and design.

Note: HS - Highly Satisfactory; S - Satisfactory; US - Unsatisfactory; HU - Highly Unsatisfactory
11
Duringimplementation,detailedtechniqueswill be developedto mneasure

the extentof DLLAJparticipation.
HS-Fullintegrationof
AMDALinto designand at
least 90% of schemes
reviewed
S-50%schemesreviewed
USs50% schemesreview
HU-Nochangein cunrent
operations
52 -
ANNEX 3
(Page I of 9)
COMPONENT
1.0
A: SCHEME DETAILS
Cirebon Bypass
The Cirebon Bypass is a 8.1 kilometer asphaltic concrete (AC) road comprised of three undivided twolane cross-sections separated by two segments of divided four-lane cross sections (Sta 2 + 400 to Sta 3 +
400 and Sta 4 + 370 to Sta 5 + 700). The original two-lane AC road was constructed in 1970; the 4-lane
segments (totaling approximately 2.3 kilometers) were widened in 1989/1990 and in 1993/1994. Work
using APBN funds is currently in progress between Sta 3+380 and Sta 4+380 to widen the roadway to
four lanes and improve the intersections at Sta 3+810, Sta 4+270 and 4+370. Three-way intersections
mark the eastern and western extremities of the road segment. The bypass traverses two active rail lines
near its eastern extremity: the Purwokerto-Yogyakarta line at Sta 6 + 400 (34 trains/day) and the TegalSemarang line at Sta 7 + 070 (44 trains/day). Both are at-grade crossings controlled by automatic gates.
The bypass has been divided into three segments. Section I is from Sta 0+000 to 5+991. Section 2 is
from Sta 5+991 to 8+100 which crosses two railway lines of grade and which may require railway
flyovers at some future date. Section 3 is the upgrading and improving of the traffic management
system for the traffic circle located at the western terminal of the bypass.
Section 1: The works involve the construction of 5.91 km of roadway which includes widening three 2lane sections to 4-lane divided highway standards and upgrading two segments of existing 4-lane
roadway to SURIP standards. The works include widening 25 meters of existing bridges and the
provision of drainage-structures, as well as upgrading and signalizing the intersections at Sta 2+400 and
Sta 5+510. The road works include common excavation, placement of common and select embankment,
and construction of the pavement structure and paved shoulder which will include placement of
Aggregate Classes A and B, and Asphalt Treated Base and Asphalt Concrete. The road works also
include construction of a raised median, the provision of traffic signals and signs, and road markings.
Drainage works include the extension of existing culverts, widening of short span bridges and the
provision of lined drains on both sides of the roadway.
Section 2: This section crosses two railway lines approximately 600 metres apart. The initial feasibility
study showed that the construction of an elevated overpass as an alternative to an at-grade crossing gave
negative rates of return, and would not become economically feasible until higher traffic levels were
encountered. As an interim solution, therefore, this section is proposed for widening at grade, but
negotiations with PERUMKA will be required to resolve legal difficulties with upgrading at-grade
crossings. The Works will continue the designs of Sections 1 and 2, and will require the provision of
appropriate railway crossings and facilities. FED has not yet been completed for this alternative.
Section 3: The works for this package consist of upgrading and widening the 3-way intersection at the
western terminus of the project. It will include revision of the overall junction to improve conditions for
port traffic joining the national road about 50-75 meters west of the bypass intersection. This project is a
continuation of the work being done under the ADB-assisted North Java Road Improvement Project
(NJRIP).
53 -
ANNEX 3
(Page 2 of 9)
2.0
Pemalang Bypass
The proposed Pemalang Bypass is a 4-lane bi-directional bypass located north of and through the city.
The bypass utilizes the east bound portion of the existing 2-lane diversion road located north of
Pemalang. Under current conditions the local and through traffic at Pemalang uses a one-way diversion
system. The westbound heavy traffic must turn left at the outskirts of Pemalang off the North Java
Transport Corridor (NJTC) main road onto a narrow, 2-lane and low standard local road which traverses
built-up and residential areas in the southern portion of the city. The diversion road crosses the
provincial road leading south of Pemalang and rejoins the NJTC main road west of the urbanized area
and continues a short distance to the kabupaten boundary. This circuitous one-way route, which is
approximately 14 kilometers long, will be eliminated by construction of the bypass.
The eastbound heavy traffic follows a diversion route north of the city center and has a length of 9.6
kilometers. The route begins at the intersection just east of the kabupaten boundary and proceeds
eastward along the NJTC main road. This 2.6 kilometer section, located on the west side of Pemalang,
traverses built-up areas with one major intersection and where the right-of-way is constructed. The route
continues east on the 7.2 kilometer, 2-lane diversion road built in 1992 which passes through mostly
agricultural areas to the north of Pemalang. The existing eastbound bypass road rejoins the NJTC main
route east of the city.
The project is divided into two sections: Section I located between Sta 0+175 and Sta 5+400 and
Section 2 located between Sta 5+400 and the western terminus of the project located at approximately
Sta 9+900.
Section 1 (Sta 0-175 to Sta 5+400): This 5.575 km long section begins east of the Waluh Bridge
located east of the existing intersection of the NJTC main road and the 2-lane bypass east of Pemalang
and follows the existing alignment to Station 5+400, a point just east of the new bus terminal
intersection. The work involves widening and upgrading 4, 575 kilometers of existing 2-lane roadway to
SURIP 4-lane divided highway standards and the completion of I km of 4-lane roadway currently under
construction using APBN funding. The project includes 22.6 meters of bridge widening and 105.4 linear
meters of bridge work for two 2-lane bridge structures to be constructed parallel to the existing bridges.
The road works required include common excavation, placement of common and select embankment,
and construction of the pavement structure and paved shoulder which will include placement of
Aggregate Classes A and B, Asphalt Treated Base and Asphalt Concrete. The road works also include
construction of a raised median, the provision of traffic signals at the major intersections, traffic signs
and road markings. Drainage works include the extension of existing culverts and irrigation cross
structures, replacement of the Baros Bridge with a triple box-culvert, and the provision of lined drains on
both sides of the roadway. The major works required to complete the project include:
*
Constructing the roadway embankment, pavement section and extension of minor drainage structures
between Sta 0-175 and Sta 5+400.
Construction of a triple box culvert at Sta 5+250.
Widening the existing Wahul Bridge at Sta 0+038 from two lanes to three lanes and constructing a
new two-lane bridge parallel to the existing structure.
54 -
ANNEX3
(Page 3 of 9)
*
Upgrading and signalizing the three-way inter-section at Sta 0+200.
Constructing a new two-lane bridge parallel to the existing bridge at Sta 2+812.
Section 2: A number of alternative alignments for this section were investigated during project
preparation, and of these, widening within the existing alignment is the option preferred by BINKOT, but
final confirmation and approval will require further limited review of environmental impacts and
resettlement implications. FED will be finalized following approval of and agreement to this alternative
by local authorities. Design standards will be as for Section 1, with a basic ROW width of 22m. The
4.315 km of existing 2-lane road will be widened to 4-lane divided highway standard, and the works
include:
*
*
*
*
*
3.0
Constructing the roadway embankment, pavement section and extension of minor drainage structures
between Sta 5+400 and Sta 9+715;
Replacing the existing 2-lane bridge at Sta8+268 with a new 4-lane structure, and constructing a new
2-lane bridge parallel to the existing structure at Sta 9+675;
Upgrading the 3-way intersection at Sta 7+082;
Upgrading and signalizing the intersections at Sta 5+600, Sta 6+904 and Sta 9+300;
Realigning approximately one kilometer of the existing truck route located to the south of the
national road so that it joins the national road at Sta 9+300.
Weleri Bypass
The Weleri Bypass consists of constructing a new 4.8 kilometer, 4-lane divided bypass road north of and
around Weleri, to enable heavy and other vehicle through-traffic to avoid Weleri's built-up residential
areas. Three underpasses will be built to accommodate vehicular and pedestrian traffic on two minor
roads. The project begins very close to the intersection of the North Java Transport Corridor (NJTC)
main road with a low-standard road serving Desa Wonotenggang, east of Weleri and ends at a proposed
new intersection for the NJTC main road near Krajasari to the west of Weleri. Most of the aligmment is
through agricultural fields, although portions of the proposed project pass close to built-up residential
areas.
Beginning in 1993, components of the project were built based on budgetary allocations. Construction of
the bypass to 2-lane standards was started between the triple box culvert at Sta 1+377 and the underpass
at Sta 4+244. The components included a 2-lane, 7.5 meter high railroad flyover, various box culverts
and drainage structures, as well as grading and placement of common embankment along 3.9 kilometers
of the alignment. The grading and placing of common embankment for the eastern 1.38 kilometer
section of the bypass started in late 1995. Right-of-way and grading is required on the western section of
the bypass between Sta 4+250 and Sta 4+800. A 30 meter wide right of way has been acquired for the
balance of the project.
The bypass is to be completed under the project. The works, from Sta 1+100 to Sta 5+131, involve
constructing 4.8 kilometers of 4-lane divided highway to SURIP standards and construction of a new
31.6 meter-long 2-lane flyover parallel to an existing structure. The road works required to complete the
project include common excavation, placement of common and select embankment, construction of the
pavement structure and paved shoulder which will include placement of Aggregate Classes A and B,
55
ANNEX 3
(Page 4 of 9)
Asphalt Treated Base and Asphalt Concrete. The works also include the construction of a raised median,
the provision of traffic signals at the major intersections, traffic signs and road markings. Drainage
works include the extension of existing culverts, widening of short span bridges and the provision of
lined drains on both sides of the roadway. The major works required to complete the 4-lane bypass
include:
*
*
*
*
Widening the existing embankment and extending the existing culverts between Sta 1+400 and
Sta 4+240.
Constructing the roadway embankment, pavement section and extension or construction of minor
drainage structures for the full length of the bypass, from Sta 0-100 to Sta 5+131.
Constructing a triple box culvert at Sta 1+377.
Constructing three underpasses at Sta 1+595, Sta 3+108 and Sta 4+244.
Constructing a new 31.6 meter two-lane flyover parallel to the existing flyover at Sta 3+924.
Upgrading and signalize the three way inter-sections at Sta 0+200 and Sta 4+800.
4.0
Kaliwungu Bypass
The proposed Kaliwungu Bypass sub-project consists of constructing a new 7.7 kilometer, 4-lane bypass
to the north of and around Kaliwungu. Construction includes improvements to 0.6 kilometers of the
existing NJTC road, so the total length of the project is 8.3 kilometers. Two underpasses are to be
provided to accommodate local pedestrian and vehicular traffic on two minor roads. The bypass begins
at the unimproved intersection of the North Java Transport Corridor (NJTC) main road with the
unsurfaced road near the community of Mijen, east of Kaliwungu, and ends at a proposed new
intersection to be created on the NJTC main road near Brangsong, to the west of Kaliwungu. Most of the
alignment passes over level terrain and through agricultural fields. Near Desa Sarirejo, it crosses an
existing access road serving an industrial area (plywood factories, private port facilities) located along
the coast several kilometers north of the alignment.
Work on the bypass began in 1992/93 using APBN funding with the construction of a 2-lane, 7.5 meter
high railroad flyover at the eastern end of the bypass, a 2-lane concrete bridge (Jembatan Kenceng),
some 22 box culverts, grading and placement of common embankment along some six kilometers of the
alignment (from Station 0+00 through 6+00). Grading and placement of common embankment for the
remaining 1.7 kilometers section of the alignment is currently in progress.
The road works required to complete the project include common excavation, placement of common and
select embankment, construction of the pavement structures and paved shoulder which will include
placement of Aggregate Classes A and B. Asphalt Treated Base and Asphalt Concrete as well as
construction of a raised median, the provision of traffic signals at the major intersections, traffic signs
and road markings. Drainage works include the extension of existing culverts, widening of short span
bridges and the provision of lined drains on both sides of the roadway. Under the current SURIP
implementation schedule, completion of the bypass is divided into two sections. Brief descriptions of
Sections I and 2 follow.
Section 1: From Sta 3+300 to Sta 8+100 the work involves constructing 4.8 kilometers of 4-lane divided
highway, the 2-lane Waridin Bridge and two underpasses. The bridge structure's total length is 31.6
meters. As given above, the GOI has already started earthworks and drainage structures on this section.
The major works required to complete the section to 4-lane SURIP standards include:
- 56-
ANNEX3
(Page 5 of 9)
*
Widening the existing embankment and extending the existing culverts to 4-lane requirements
between Sta 3+600 and Sta 6+200.
Completing construction of the embankment, pavement structure and culverts for the full length of
the section.
Constructing one 31.6 meter 2-lane bridge at Sta 8+000.
Constructing underpasses at Sta 3+400 and Sta 4+848.
Constructing and signalizing the inter-sections at Sta 7+780.
Section 2: From Sta 0-200 to Sta 3+300 the work involves constructing 3.5 kilometers of 4-lane divided
highway, one 2-lane bridge and one 2-lane flyover parallel to the existing structures. The bridge and
flyover structures have a total length of 63.2 linear meters. As given above, the GOI has already started
earthworks and drainage structures, and constructed the first 2-lane structures for the Kaliwungu Flyover
and Kenceng Bridge. The major works required to complete this section of the bypass to 4-lane SURIP
standards include:
*
between Sta 0-200 and Sta 3+300.
Completing construction of the embankment, pavement section and culverts for the full length of the
bypass.
Constructing a parallel 31.6 meter-long 2-lane span at the Kaliwungu Flyover, Sta 0+350.
Constructing a parallel 31.6 meter long 2-lane span at the Kenceng Bridge, Sta 1+889.
Constructing the intersections at Sta 0+200 and Sta 3+400.
5.0
Semarang Northern Ring Road (SNRR)
The existing 2-lane SNRR connects the NJTC national highway at the Kalibanteng Roundabout on the
west side of the city to the northern port area of the city. The road traverses an alluvial plain consisting
of deep, low strength, highly compressible soils. The ring road was originally constructed under the
Regional Cities Urban Transport Project (Ln. 2817-IND) in 1992. The SNRR currently terminates at the
main port entrance. An extension of the SNRR, to connect with the existing road to Demak is planned.
The first stage, the northern two lanes, is now being tendered for construction under the Bank funded
Semarang-Surakarta Urban Development Project (Ln. 3749-rND).
The proposed SNRR project comprises three road sections and one flyover. Sections I and 2 involve
widening 7.7 km of the existing 2-lane road to SURIP 4-lane divided highway standards, together with
associated improvements to drainage structures and the provision of three 2-lane bridges having a total
length of 306 meters constructed parallel to the existing structures. The project also includes
constructing 276 meters of new 2-lane railway flyover parallel to the existing Cakrawala Flyover. The
road works required to complete the project include common excavation, placement of common and
select embankment, construction of the pavement structure and paved shoulder which will include
- 57 -
ANNEX 3
(Page 6 of 9)
placement of Aggregate Classes A and B, Asphalt Treated Base and Asphalt Concrete. The works
include constructionof a raised median,the provisionof traffic signals at the major intersections,traffic
signs and road markings. Since the roadway embankmentcrosses soft ground, a system of fiber wick
drains, sand blankets and surchargeembankmentloading is required to pre-consolidateand strengthen
the underlyingsoils. Drainageworks includethe extensionof existing culverts,wideningof short span
bridgesand the provisionof lined drainson both sidesof the roadway.
Section 1 (Sta 0+500to Sta 6+100): This section begins betweenthe Kalibantengtraffic circle and the
Cakrawala Flyover and continues eastward beyond the Kali Semarang Bridge. Most of this section
requires construction of an embankmenton deep highly compressible low strength soils. To allow
construction in the soft ground areas, special staged construction procedures are required for the
embankmentand bridgeabutments. Controlledsurchargeembankment,geotextilesand pile foundations
will be requiredto control the effectsof settlementand to increasethe bearingcapacityof the underlying
soils to accelerate its consolidation. The section, which includes 5.6 kilometers of 2-lane roadway
parallelto the existing road, a new flyoverparallelto the existing CakrawalaFlyover,2 bridges parallel
to existingstructures,and three major intersections,has beendivided intotwo packages:
Package 1 - extendsfrom Sta 3+550to Sta 6+100and includesthe followingmajorworks:
*
between Stas 3+550and 6+100using pre-loadtechniques.
Constructingthe pavementstructure,pavedshouldersand centermedian.
Constructingthe Banjir Kanal Barat and Kali Semarang2-lane bridges which have a total length of
256 meters at Sta 3+890and Sta 5+550.
Upgradingand signalizingone major intersectionat Sta 4+250.
Package 2 - extendsfrom Sta 0+500to 3+550and includesthe followingmajorworks:

*
betweenStas 0+500and 3+550using pre-loadtechniques.
Constructingthe pavementstructure,pavedshouldersand center median.
Constructingan eight span 276 meter 2-laneflyoverat Sta 0+777.
Upgradingand signalizingtwo major intersectionsat Sta 1+800and Sta 2+900.
Section 2 (Sta 6 + 100 to 7 + 695): This section begins between the Kali Semarang and Kalibaru
Bridgesand continueseastwardto the main entranceto the port. It includeswidening 1.6 kilometersof
existing 2-lane roadway to four lanes,constructingone 50 meter bridge parallel to existing structure at
Kalibaru,constructingan underpassat Sta 6+275, frontageroads in the developedareas and two major
intersections.
In addition to settlementof the embankmentresultingfrom constructionover highly compressiblesoils,
soil subsidencecausedby over-pumpingthe underlyingartesianaquifer is also a major problem in this
- 58-
ANNEX3
(Page 7 of 9)
area. Consequently, surface water drainage in this area is poor because the mean water surface elevation
remains constant as the land subsides. The rate of subsidence in approximately 1.5 centimeters a year;
therefore, much of the infrastructure in the area will have to be raised.1 As with section 1, special staged
procedures are required to construct the embankment and bridge abutments on the soft ground.
Controlled surcharge embankment, geotextiles and pile foundation are required to control the effects of
settlement, to increase the bearing capacity of the underlying soils and to accelerate consolidation.
Additional ROW on the southern edge of most of this section is needed to accommodate the intersection
at the main port entrance and the additional 2-lanes required in this area. The required land has been
identified and is reported to be controlled by government owned and operated companies: its acquisition
should not be a problem. The major works required to complete Section 2 of the ring road include:
*
between Stas 6+100 and 7+695 using pre-load techniques.
Construction of the pavement structure, paved shoulders and center median.
Constructing the 50 meter 2-lane Kalibaru bridge at Sta 6+460.
Designing and constructing a local traffic underpass at Sta 6+275 and the related frontage roads
between the underpass and the intersection at Sta 6+800.
Upgrading and signalizing two major intersections at Sta 6+800 and Sta 7+695.
Section 3: This section begins at the eastern end of Section 2 of the main entrance to the port, and
continues to a junction with the existing main road to Demak. It consists of the second (southern)
carriageway of the SNRR extension being funded under SSUDP.
Kalibanteng Roundabout and Flyover: The roundabout connects the NJTC route with the SNRR. In
total, it accommodates six approach roads plus a driveway entrance to a proposed hospital. Two
improvements are proposed here. The first is directed toward short term solutions which include
improvement of traffic management (signalization) and changes to improve the geometry of the
roundabout. This work is to be implemented outside of the SURIP program using under APBN funding.
The second long term improvement, entails the construction of a flyover to accommodate the major
traffic movements across the roundabout. The most appropriate layout for the flyover is being evaluated.
6.0
Demak Bypass
The proposed Demak Bypass is to be constructed to relieve congestion in the built up areas of Demak
and improve the travel time and speed of through traffic. The bypass intersects the NJTC road to the east
and west of the city at locations away from the built up areas of the city. It passes through relatively
level agricultural lands to the south of the center of the town, crosses one minor kabupaten road, crosses
a major water supply canal and a paved 2-lane provincial road going to Purwodadi. A major intersection
For example, southern edge of the recently (1990) constructed concretefour lane section of roadjust to the west
of the main port entrance is almost at water level. Base and subbase materials were observed to be pumped
through the constructionjoints as heavy traffic used the road.
- 59
ANNEX 3
(Page 8 of 9)
and bridge are to be constructed where the proposed bypass crosses the water supply canal and adjacent
provincial road. Two bridges are required to cross minor rivers.
The project involves the construction of 6.967 kilometers of 4-lane divided highway, three 4-lane
bridges, two 2-lane underpasses and three box culverts as well as three major intersections. The bridge
structures have a total length of 131 linear meters. Observations indicate that the surfical soils in the area
contain expansive clays. The roadway embankments are to be constructed with non-expansive materials
to minimize the effects of expansive soils on embankments and pavement structure.
select embankment, construction of the pavement structure and paved shoulder which will include
placement of Aggregate Classes A and B, Asphalt Treated Base and Asphalt Concrete. The road works
include construction of a raised median, the provision of traffic signals at the major intersections, traffic
signs and road markings. Drainage works include the provision of standard culverts, box culverts and
the provision of lined and unlined drains. The major works required to construct the bypass to 4-lane
SURIP standards include:
-
Constructing the embankment, pavement section, and culverts for the full length of the bypass
between Sta 0+000 and Sta 6+970.
Constructing two 2-lane underpasses for the kabupaten roads at Sta 1+250 and Sta 3+750.
Constructing three 4-lane prestressed girder bridges having a total length of 131 meters at Sta 2+615,
Sta 3+075 and Sta 5+075.
Constructing and signalizing two major intersections at Sta 0+000 and Sta 6-970.
7.0
Kudus Southeastern Bypass
The proposed Kudus Southeastern Bypass consists of constructing a new 10.8 kilometer, 4-lane bypass
southeast of and around the city center. The bypass begins approximately 4.0 km east of the city center
where the existing one-way west bound truck route turns south off of the NJTC main road. The bypass
proceeds south for approximately 3.8 km before it turns westward and continues on another 7 km to the
intersection of the NJTC main road. The western terminus of the bypass is located approximately 4 km
southwest of the city center. The Bypass intersects two roads, a kabupaten road at Sta 2+400, and the
provincial road from Kudus to Purwodadi at Sta 8+600. At Sta 9+300 the bypass forks. The west bound
traffic continues on to the left on the existing road to the bus terminal and onward to Semarang. The
right fork carries the east-bound bypass traffic and limited west bound traffic proceeding to the
Southwest Ring Road and the western limits of Kudus. One bridge structure is to be constructed at Sta
1+400. Final design of the traffic system at the western terminus of the bypass from the fork in the
bypass at Sta 9+300 to the Southwest Ring Road and the Bus Terminal is still in progress. Work on the
bypass using GOI funding has already started between Sta 0+000 and Sta 8+600. In this area culverts
have been installed and common embankment has been placed for the width of the existing ROW.
Between Sta 8+600 and the Bus Terminal, the bypass follows the existing road system. Work has not
started on the right fork of the bypass between Sta 9+300 and Sta 10+400, the junction of the NJTC main
road and the Southwest Ring Road.
- 60 -
ANNEX 3
(Page9 of 9)
select embankment and construction of the pavement structure and paved shoulders which will include
placement of Aggregate Class A and B, and Asphalt Treated Base and Asphalt Concrete. The road
works will also include construction of a raised median, the provision of traffic signals at the major
intersections, traffic signs and road markings. Drainage works include the extension of existing culverts
and the provision of lined drains on both sides of the roadway. The major works required to complete
the bypass to 4-lane SURIP standards include:
*
Completing the existing roadway embankments and extending the existing culverts to 4-lane
requirements for the full length of the bypass.
Constructing frontage roads in the developed area between Sta 0+000 and Sta 2+450.
Constructing the pavement structure, paved shoulders and the median for the full length of the
bypass.
Constructing lined and unlined drains on both sides of the roadway as required.
Constructing one triple box culvert at Sta 1+400.
Constructing and signalizing the major intersections at Sta 0+000, 2+400, 8+600 and 10+400.
61
ANNEX4
(Page I of 4)
COMPONENT A: SuRiP ROAD DESIGN STANDARDSAND GUIDELINES
I.
The purpose of this annex is to summarize the salient features of the design standards and
guidelines used for the SURIP bypasses. These have been used by BINKOT in designing the roads, and
by the BANK in reviewing the designs.
URBAN ROAD DESIGN STANDARDS
Functional classification
2.
Given the estimated traffic volume and the design function, the SURIP bypass are designed for
Type 11,Class I roadway. Design speed is 60 km/h. This implies that the bypasses are designed as the
highest standard street of 4 or more lanes with partial access control to serve longer distance, higher
speed traffic. The basic cross section is 22 meters wide, containing a 2 x 2 lane road with paved
shoulders. The right of way (ROW) is 40 meter wide except for Cirebon, where a 38 meter ROW has
been designated for some time.
Geometric design standards
3.
With exception of the normal cross slope and vertical grade, the standards are the same as those
presented in the Standard Specification for Geometric Design of Urban Roads, March 1992 (1992
Geometric Design Standards, hereinafter). Based upon BINKOT's experience, the recommended
standard for normal cross slope was increased from 2.0% to 2.5% to improve drainage, and the
maximum grade was reduced from 5.0% to 4.0% to reduce the impact of steep grades on truck
movement.
Cross Section
4.
The typical cross-section has the following characteristics:

*
A raised 2 meter wide center median
*
7.0 meter wide dual carriage ways with 0.5 meter wide margin strips on each side of the
median
*
2.0 meter wide paved shoulders, or curbs and side-walks, depending upon urban area needs,
and
* Drainage facility at the outer edges of the ROW
At intersection locations, the typical 7.5 meter dual carriage ways are widened to 10.25 meter or more to
accommodate a third lane for turning movements.
62
ANNEX 4
(Page 2 of 4)
Intersection design
5.
The 1992 Geometric Design Standards when applied for SURIP bypasses (Type 11,Class I roads
with a design speed of 60 kilometers) prescribe that all intersections are to be controlled by traffic
signals. However it was decided that this was not feasible on the SURIP by-passes. Guidelines were
adopted for SURIP to provide traffic signal controls at all major intersections and restrict access at minor
cross road intersections. When at-grade access is provided for minor intersections and driveways, it is
limited to left turning movements, (Left in, Left out).
Pavement thickness design
6.
The Bina Marga Method of Component Analysis (SKBI 2.3.26. 1987 - SNI No. 1732-1989-F)
has been used to design pavement sections for the first year projects. The same design life of 10 years
has been used for both carriage way and shoulder pavements. The design traffic loading, however, for the
shoulder pavement is halved from that of the carriage way to account for an anticipated distribution over
the cross section, which resulted in slightly less structural requirement for the shoulder section than that
of the carriage way.
7.
Because widening of the SURIP roads to include frontage roads is anticipated in the future, the
shoulders have been designed to minimize the construction effort required to widen the roads at a later
date. The idea of the proposed shoulder section pavement design is to simplify the initial construction at
the joint between the carriage way and shoulder. (see Detail A of Figure 4 - I)
Structural design
8.
All structures are designed for Class I Bina Marga loads in accordance with "Bina Marga
Loading Specifications for Highway Bridges," SKBI - 1.3.28. 1987, Department Pekerjaan Umum. "The
Bridge Management System (BMS)" of Directorate General of Highways, Ministry of Public Works,
Republic of Indonesia and "Standard Specification for Highway Bridges of American Association of
State Highway and Transportation Officials," 15th edition, 1991 (AASHTO) were used for the design of
all structures.
DESIGN GUIDELINES FOR SURIP ROADS
Safeguarding road function - ROW width, access and land use control
9.
It was agreed that BINKOT would require limited access control as a condition of providing the
new road for the Kotamadya and the Kabupaten. This entails making provision for the ultimate design
stage for frontage roads which provide access for local traffic. However since, except for a limited
number of road segments, frontage roads are not provided from the initial stage of bypass construction, it
is important to acquire or designate by local land use control regulation, perda, the ultimate 40 meter
ROW in order to safeguard the construction of frontage roads at a later stage. Also, it is imperative to
confirm that the provisional designs of running sections and intersections conform to their ultimate
designs.
63
ANNEX4
(Page 3 of 4)
Design of bypass junctions with existing NJC roads
10.
Bypass junctions with existing NJC roads should be designed with the bypasses as main routes
so that the diversion of through traffic to the bypasses may be maximized. Although this concept can be
best achieved by grade separation, it is recommended that it be used only at such junctions where
through traffic onto the bypass is required to make right turns and grade separation is economically
justified. Junctions which do not require right turns for the through traffic should be designed with
continuous flow lanes for through traffic without using grade separation. As a result, only the eastern
junctions of Kaliungu is recommended to be designed with grade separation.
Guidelines for the provision of major intersection, minor intersection and underpass and future
upgrade thereof
I.
Clear guidelines should be developed regarding the provision of major and minor intersections,
and underpasses (where no access is provided from the minor road to the bypass and vice versa). The
guidelines should delineate conditions for providing these different intersections and underpasses in
terms of conditions of the crossing roads themselves, such as functional classification of the roads, and
the situational conditions including the distances from the neighboring intersections, etc. Guidelines
should also be developed for the conditions for upgrading intersection types and provision of lamps
connecting grade separated minor roads with the bypass.
U-turns
12.
No U-turns without proper design should be allowed on the SURIP bypasses. All designs should
be reviewed to ensure that appropriate provisions are made to all movements on the bypass so that no
vehicles are required to travel excessive distance without resorting to U-turns. U-turn provision should
be made only when it is deemed to be the only feasible solution. Guidelines should be developed for the
provision of U-turns designs which clearly delineates conditions under which the U-turns provision is
warranted. The guidelines should also include standard designs for U-turns. A possible standard design
was discussed during the appraisal mission.
Pedestrians, NMVs and slow moving vehicles
13.
All road segments along the bypasses should be identified where slow moving vehicle, NMV and
pedestrian traffic volumes are deemed to be high. All geometric designs for such segments should be
reviewed to ensure the safe and smooth travel of these traffic. Frontage roads should be designed and
constructed from the initial stage wherever possible and necessary (particularly at intersections) to ensure
this requirement and to reduce side friction for motorized vehicle traffic. Parallel roads should also be
investigated in this design process to identify possible alternative means for providing appropriate routes
to pedestrians and NMVs.
14.
The safe passage of pedestrians and NMVs must be addressed in the design of all locations
where bypasses cut across existing pedestrian/NMV paths and no intersections are provided. The
measures to be considered include underpass, median cutting and traffic island.
- 64
ANNEX
(Page4 of 4)
Hydrology and hydraulic analysis
15.
Hydrology and hydraulic analyses shall be done in the design of bridges and other major
drainage structures to determine the waterway requirements for the particular structure. .It was learned,
however, that such analyses have not been done so far in the preparation of SURIP projects. The practice
in Indonesia has often been to proceed with design without doing these analyses and to verify the
fulfillment of hydrologic and hydraulic requirements expost. Appropriate modifications to the design, if
found necessary, are accommodated in the field in the form of change orders. Apparently, this is not a
sound practice, and therefore, it is strongly recommended that the appropriate hydrology and hydraulic
analyses be preceded to the design of bridges and other major drainage structures. The Bridge
Investigation Manual stipulates the procedures to be used for such analyses and should be used as SURIP
guidelines..
Pavement design method
16.
The Project Preparation Document should clearly describe the method used for conducting
structural analysis of the pavement..
- 65 ANNEX5
COMPONENT
A: CRITERIAFOR APPROVALOF RoAD SCHEMESUB-PROJECrSFOR FUNDING
1.
"Before" Surveys (of the existing road)

* Classified Traffic Counts
* Origin and Destination (OD) of Traffic
* Travel Times
* Noise
* Air Pollution
* Road Accident Data (Time series data over several years).
2.
Civil Works Contract Documents

Volume-I Instructionsto Bidders
Volume-2Conditionsof Contract
Volume-3Specifications
Volume-4Drawings
Volume-5Formof Bidand Bill of Quantities
Volume-6Special Specifications.
3.
Land Acquisition - Confirmation that land has been acquired.
4.
Resettlement - Confirmation that resettlement (if required) has been completed according to an
approved Resettlement Action Plan.
5.
Environmental Assessment, Management and Monitoring Plans.
6.
Economic Evaluation - Economic evaluation updated to reflect Final Construction and ROW
costs, and actual construction schedule.
7.
Quality of Life Improvement Package - Basic Concepts.
8.
Initial steps for the establishment of the DLLAJ have been taken by the participatingLocal
Government where the sub-project will be implemented.
9.
Operations and Maintenance Arrangements on Completion.
10.
Performance Monitoring Arrangements - Time-based schedule for "After" surveys, with details
of agencies responsible.
66 -
ANNEX6
(Page I of 5)
STRATEGIC
URBAN ROADS INFRASTRUCTURE
PROJECT
COMPONENT B: URBAN MANAGEMENT AND "QUALITY OF "LIFE" IMPROVEMENTS

OUTLINE SCOPE OF ACTIVITIES
Bl. TRAFFIC AND ENVIRONMENTAL MANAGEMENT PLANS

I1.
Preparation of plans for the existing road and adjacent areas, to change the function of the road
through the town from a primary arterial to a local traffic street or collector road, where the requirements
of pedestrians, NMV and local traffic movements take precedence over longer distance traffic. This is
done by a series of measures designed to make the route less attractive for longer distance traffic which
does not wish to stop in the town, and also designed to make the road safer for pedestrians and NMV.
2.
The plan will focus on measures to:

(a)
reduce the traffic function of the existing main road by reducing the road capacity,
altering the horizontal alignment to reduce speeds, removing or modifying parking restrictions
except where necessary for road safety, improving at grade pedestrian crossings, or closure of
short sections to create pedestrian areas, or to improve the setting of important buildings.
(b)
ensure the safety of the road user, especially the pedestrian by providing sidewalks,
pedestrian crossing, bicycle lane, traffic lights, road marking etc.;
(c)
prevent local traffic congestion by improving traffic management and enforcement,
providing bus stops, appropriate parking space and restrictions, improving control over roadside
activities that encroach on the roadspace;
(d)
enhance amenity by greening/ tree planting, improved sidewalks and other measures;
3.
Specific measures to consider in preparation of traffic and environmental management plans

(i)
Traffic Management, Circulation and Parking Scheme. This will consist of the following
elements that together will comprise an integrated approach to improvement of the urban area:
*
*
*
*
traffic management and minor improvements on existing and proposed roads to

disperse traffic more efficiently;
parking policies to improve and control on-street parking;
improvement of facilities for pedestrians;
public transport improvements including bus priority measures, stops, circulation
and terminal improvements.
(ii)
Protection of Sensitive Local Areas from truck intrusion by use of local area
management measures.
(iii)
Route Enhancement: along existing local roads that provide a vital connectivity and
therefore in functional terms a secondary role
* traffic management may be needed to increase capacity;
- 67 -
ANNEX 6
(Page 2 of 5)
*
*
*
*
*
(iv)
Improvement of facilities for pedestrians, including:

*
*
*
*
*
*
(v)
footpath widening and upgrading;

road closures and provision of pedestrian-only street sections;
installation of new medians to increase pedestrian and traffic safety;
installation of 2-phase pedestrian signals for busy roads;
rehabilitation of existing pedestrian overpasses and construction of new ones;
street lighting.
Facilities for Non-Motorized Public Transport

*
*
*
*
4.
localized widening at intersections and bus stops;

management of market, street vendors and becak terminal parking;
street lighting;
non-signalized intersection improvements;
removal of fixed road-side objects.
where services lanes are provided and used by bicycles, improved surfacing,
connections and drainage;
provision at intersections and crossings for bicycles and barrows;
consideration to provision of integrated bicycle and NMV routes;
parking areas for bicycles and NMV's.
Criteria for approval of road scheme sub-projects for funding

(i)
Civil Works Contract Documents

Volume-IInstructionsto Bidders
Volume-2Conditionsof Contract
Volume-3Specifications
Volume-4Drawings
Volume-5Formof Bid and Bill of Quantities
Volume-6SpecialSpecifications.
(ii)
Land Acquisition (if required) - Confirmation that land has been acquired.
(iii)
Resettlement (if required) - Confirmationthat resettlement has been completed according

to an approved Resettlement Action Plan.
(iv)
Environmental Assessment, Management and Monitoring Plans, according to GOI

requirements.
(v)
Operations and Maintenance Arrangements on Completion.
- 68 -
ANNEX6
(Page 3 of 5)
B2. STRUCTURE PLAN REVIEW.

5.
Ensuring that the layout, function and improvements planned for the town road network reflect
the presence of the by-pass and the ability of the by-pass to take the through traffic as well as the longer
distance intra-urban traffic. This requires a review of the road network shown in the Strategic Structure
Plan, and improvement proposals in the PJM of the IUDP, and amendments as appropriate, including
additional works that could be funded through SURIP.
B3. PROTECTION OF THE FUNCTION AND RIGHT OF WAY (ROW) OF THE BY-PASS:
6.
Ensuring that the land use plans and regulations of the town make provision for dealing with the
development pressure that will arise along the by-pass. This has several aspects:
*
*
*
*
-
defining a 40 m ROW for by-pass, with access via junctions at locations governed by highway
design criteria, and limited or no access elsewhere;
protecting the ROW with local government regulations;
protecting the ROW with physical measures such as drainage ditches, embankments and walls;
providing sites close to the junctions for commercial development;
providing access roads from the junctions to these sites.
TIME BASED PROGRAM FOR PREPARATION OF COMPONENT B

7.
Overview: The basis of the program is the assumption that the "Quality of Life" (QLI)
subprojects will be planned during the completion of the bypass subproject, but designs will not be
finalized until after some period of operation of the bypass has elapsed. For this purpose, it is assumed
that project preparation for the QLI subprojects needs to be completed three months after opening of the
new bypass, On this basis, the attached Implementation Schedule shows the various stages and their time
dependency. Particular aspects of the program are noted below.
8.
Relationship with DLLAJ Unit Setup and Staff Training: Assuming that an immediate start
can be made in setting up the DLLAJ units by the respective Bupati/Walikota and MHA, and allocating
26 weeks for this to occur, it can be seen that this will be completed before the TA Services for Training
DLLAJ staff will commence. It can be seen from the attached Schedule that DLLAJ training will be
completed well before there is a need to begin QLI program planning in any city.
9.
Elements of the Project Preparation Process: It is apparent from the attached Schedule that
completing designs after three months operation of the bypass delays completion of QLI program
implementation until 18 months after bypass completion. It has been assumed that planning consultants
will be procured for each city. For cities where bypasses will be constructed in a number of sections
and/or packages of civil works, with completion dates several years apart, separate QLI packages will
also be required.
- 69 -
ANNEX 6
(Page 4 of 5)
N URBAN ROADS ROUTINE MAINTENANCE UNIT
TENTATIVE LIST OF EQUIPMENT

Item
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Typeof Equipment
UnHt
DumpTruck, 3.5 T
unit
Flatbedwith crane,3.5 T
unit
Pickup '
unit
Wheel Loader,0.75 m3 andBackhoe
unit
Roller,2T (vibro)
unit
Baby Roller
unit
Vibro PlateTamper
unit
Vibro Rammer
unit
Air Compressorwith Breaker
set
AsphaltHeaterand Sprayer
unit
Pan Mix
unit
Chain Saw
unit
GeneratingSet
unit
Tool and Safetysigns
set
MechanicalTools
set
Allowancefor OperatorTrainingby Supplier
TOTAL
Quantityby Kotamadya
Total
Semarang Cirabon Pokalongam Quantity
4
2
2
1
2
2
2
2
1
2
2
2
1
2
2
2
1
1
1
1
1
1
1
1
1
1
1
0
1
1
2
1
1
0
1
1
1
1
0
1
1
1
0
1
1
8
4
4
2
4
4
4
4
2
4
4
4
1
4
4
Unit Cost
US$'000
TotalCost
USS'000
20
30
15
55
30
8
1
1.25
15
2.5
4
0.75
10
2
3
160
120
60
110
120
32
4
5
30
10
16
3
10
8
12
70
770
'Vehides Not BankFinanced
220
TOTALBank Financed
550
IMPLEMENTATIONSCHEDULEFOR QLI PROJECTS

1996
ID
1
2
3
Task Name
EstablishDLLAJUnits
ProcureDLLAJConsultants
DLLAJTraining
First Year Projects
CirebonSection 1
SemarangNRR S1, Pkg 1
Durat.
26w
40w
52w
0.2w
3/10/97
6/3/96
3/6/98
6/3/96
78w
3/3/97
8/28/98
104w
3/3/97
2/26/99
Kudus
78w
3/3/97
8/28/98
Weleri
78w
3/3/97
8128/98
KaliwunguPkg 1
78w
3/3/97
8B28/98
10
Example Schedule for 1st year c
106w
9/1/97
9/10/99
11
ProcurePlanningConsultants
35w
9/1/97
12
QLI Planning
26w
6/1/98
13
ProjectApprovals
13w
14
ProcureConst. SupervisionC
35w
15
TenderCivil Works
28w
1997
J
1998
J
.J
1999
I A I J
I 0 | J
2000
I A IJ
5/1/98
11/27198
11130/98 2/26/99
10/1/98
6//99|
3/11/99 9/10/99
16
Construction,OLI
26w
9/13/99
3/10/00
1
17
18
Later Civil Works Projects

PemalangSect 1
0.2w
6/3/96
6/3/96
78w
11/5197
5/4/99
19
Demak
78w
11/3/97
4/30/99
20
21
22
KaliwunguPkg 2
CirebonSection 3
Kalibanteng
78w
52w
10/8/98
4/1199
4/5t00
3/29100
23
PemalangSect2
78w
4/1/99 9/27/00
4/1/99 9/27/00
24
CirebonSection 2
78w
4/11/99 9/27/00
25
SemarangNRR S3
104w
1/1/99 12/28/00
26
SemarangNRR St, Pkg 2
104w
4/11/99 3/28/01
27
SemarangNRR S2
104w
4/11/99 3/28/01
78w
Start
Finish
A
6/3/96 11/29/96
6/3/96
3/7/97
l~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
IMPLEMENTATION
SCHEDULE
OLI Progam
Task
MIstons
>
Smnmary CD Z
LA
- 71 ANNEX 7
STRATEGIC URBAN ROADS INFRASTRUCTURE PROJECT.
OUTLINE SCOPE OF POLICIES, PROCEDURESAND GUIDELINES
COMPONENT
A: ROAD CONSTRUCTION
(a)
Scheme planning and design. The topics to be covered, the milestones and the elapsed time necessary
in the process from initial concept through to final engineering design of a road scheme are not well understood.
This manual, which should be prepared by the PMU with consultant support, would cover the whole process for
all aspects of a road scheme including engineering , economics, environment, land acquisition, resettlement,
finance, and public participation.
COMPONENT B1: TRAFFIC AND ENVIRONMENTAL AREA MANAGEMENT PLANS
(b)
Traffic Management. DGLT has published a Traffic Engineering Handbook in Bahasa Indonesia. This
needs to be expanded to include good examples of "Quality of Life" improvements, as well as the methodology for
undertaking traffic management studies of the type to be undertaken in Component B of this project.
COMPONENT C2: STRENGTHENING OF BINKOT AMDALSECTION
(c)
Environment. The project will support continued development jointly by the GOI and the Bank of a
policy statement and guidelines for urban roads and the environment, to reflect international good practice. This
development work will draw on the recently published TWU Report 13 'Roads and the Environment: A
Handbook" which has been translated into Bahasa Indonesia. These guidelines could then be refined in the
implementation of SURIP schemes, and the planning and design of other BINKOT road schemes. This policy
work will complement the Institutional Development of BINKOT AMDAL section.
(d)
Resetlement. Detailed Bank policy guidelines and good practice for urban road schemes are being
developed. The project will support work jointly by GOI and the Bank to develop a policy statement and best
practice guidelines to ensure to the extent possible the living standards of people affected or resettled as a result
of urban road schemes in Indonesia have their living standards improved or at least restored. These guidelines
could then be refined in the preparation of any future Bank funded road projects.
COMPONENT E2: PLANNING PROGRAMMINGAND EXECUTION OF URBAN ROADs WORKS
(e)
Feasibility Studies. There appears to be no accepted definition in Indonesia of what constitutes a
"Feasibility Study". This manual will provide such a definition and examples of good practice.
(f)
Functional Design Guidelines. The SURIP road design guidelines in Annex 6 evolved during the
preparation of this project. They will formnthe basis for good practice guidelines to be used for the preparation of
road schemes for future primary urban road projects, including but not limited to SURIP Projects.
(g)
Economic Evaluation. Standard methodologies are currently being used to evaluate road schemes, and
the results are robust, but each project or study customizes the process. The resulting models are not user
friendly and it is doubtful they could be run by a local highway engineer with assistance from a local transport
economist. "What if" scenarios to do sensitivity tests on key variables are not easily done. BINKOT needs to
develop models and software that are user friendly and standard across all projects of similar scope.
(b)
Technical Memorandum on Urban Roads for IUDP. The memorandum currently in general use (due
to the lack of any other material) was prepared in 1988 by consultants as a Technical Report for the original East
Java IUIDP. There is general agreement that it needs to be updated, and issued as a BINKOT Manual.
ENVIROMENTALIMPACT ASSESMENT:SCREENING FOR ROAD PROJECTS

New Conststo
TollRoads ndFlyovems
Natonal ndProvindaHighways
> 25km
- UrbanandMetopolitan
Roads> 5km
- UrbanandMetropoitan
RoadBetterment
outsideof rightof way> 5 krn
- Bndges
> 60 m long
-
Yes
Yes
_A
_I
YvUII
theproposed
prolectLnerse
proled bwvwu:
1. Areaof Signifl Socia
l pa
2. StrictNatur Reserve
(CA)
- -- -- -- -- - -- -- -- - - - - --- - -
NewConstruction
of National
and
Provincalroadsc 25km
Yes
_ __
L __
RRoad
bettemnent
outsidethJe
rgligtof 1
km
! . ................I
New
local (kabupaten)
road
construction
__
Potentiallysignificant
____MPOSW
impact?
3. WildlHfe
Resrve(SM)?
4. ConservatInForest?
5 Biodvnty Protesbon
Area?
6. vMidlife
Reuge_:
7. Protection
Forest(HL)?
BSwanpOV
5
Yes
Uper Waterd Are

N
~~~12.
Springs
andWater supplyAron?
~~~~~~~~~~13.
Main and Frnbrwa Coservabon Areas?
14.MagoveArea?
15.Nabional
Pa?
16.Natre Park?
17.RereaibonPak
18.CulturalReserves
andScientkic
Research
Areas7
19 NaturalHazardZones?
20 SteepSe andohewFragil Areas?
No significantimpact
UKL(Environmental
Management
Plan)andUPL
__________________ _
V
t
No
* Specialcases of minorroad improvementon

existingroads within right of wayin sensitive
areas should be dealt with on a case by case
basis
Roadbetterment
withinthenghtof way,routne
and perirohcmaintenance
ENVtRONMENTAL
FIELD
STUDY
and Area?
11Aron sunounding
I_AkeandReservoirs?
Requires
ANDAL(Environmnental
Inmpact
Statement),
RKL(Environmental
Managemnent
Plan),RPL(Environmental
Monutorng
Plan)
Yes
s_
'
_ (EnvironmentalMonitoringPlan)
Dsson
on-9n sechralUKLJUPL
No
Implementation
of Standard
Operabng
Procedures
(SOPs)to mitigate
environmental
impacts.
....................................................
- 73 ANNEX 8
(Page 2 of 2)
ENVIROMENTAL IMPACT ASSESMENT:
CRITICAL ISSUES To BE INCLUDED IN DOCUMENTATION
1.
Description of Existing Situation
On a map of scale not less than 1:1000 or where these are not available on a carefully prepared schematic
representation of the study area.
*
identify existing land use on either side of the road (and estimate area(s)
identify on either side of the road numbers of people and housing or community facilities affected
by the project with their exact location
identify drainage patterns and comment on local hydrology e.g. where are the existing streams and is
there any history of flooding in the area
indicate whether the soils are sandy, silty or clayey
indicate any trees which may be affected by the road
measure existing traffic volume on existing roads and identify their present function
identify any existing traffic hazards
c
comment
on existing sources of noise (both stationary and moving sources)
measure the existing noise with a hand held noise monitor three times per day (once in the morning
once in the afternoon and once at night) at the same locations where traffic volumes are collected.
ccomment on existing air quality.
2.
Proposed Road Scheme
2.1
For each stage of the proposed road scheme provide:

*
*
*
*
*
an assessment of the impact of the project on traffic volume and day/night distribution
a brief assessment of the noise impact e.g. will the noise level increase by more than 5 dB(A) in the
housing areas
a brief assessment of impact on safety e.g. will the project affect the safety of pedestrians and non
motorized vehicles (NMV)
a brief assessment of anticipated changes in air quality
a qualitative assessment of how the project will affect local businesses and industries
a brief assessment of how the project will affect the quality of life of local residents in the immediate
vicinity of the proposed sub-project.
2.2
If noise levels are anticipated to increase by more than 5 dB(A) in residential areas or on community
facilities such as schools or hospitals, then a proposal to mitigate or manage the problem should be included in the
UKL/RKL and a proposal to monitor implementation should be included in the UPL/RPL. This proposal should be
discussed with the project manager in BINKOT. If barrier construction is anticipated a pro forma design should
included. If relocation is considered to be the preferred option then evidence the process to relocate the houses,
school or hospital has been started should be included.
SIJEP PROGRAMCOMPONENTSUMMARY
IStD . 60%(00%for Tk II)
001 . 60% (40%for Tk II)
CW FUNDINGSPLI:
AOIBflO
1450
.-
F.0o
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150
Apr.56 2 4
Ap,-96 37
myApmSPOECTS
24
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16
12
Apr-N
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Apr.56
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Apr.65
D..*P
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A.g-55
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___I____
1.946
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0022202
0 0 0x 0
x0
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2.415
2.527
,37
2.5
72
1III
.675
3675307
Apr.01
1.121
l l
4.76080
70
125
576
1,165
4.404
5.105
2.218
775
5,534
1.456
o2
5,763
13.496
7.572
5,544
5.X.X:024 3.703
2.100
2.650
1,06'
1,31
4.243
4,652
6.400
__PI _6.775
.1
470.4
_____
1.2
&
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3.332
0245.7
,114
Apr.00
24
24
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,6
2 4
0022222X
1
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3
31
L I
Apr-00
5-55XX
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J4.59S
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6
1.204
353
1
L L L. L.
. IL
5.-67
IL L I
Apr-59
L- L
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Oct.96
LL L L L
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4.570
1.001
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7.210
2.647
13.204
2,766
648
10.229
5.601l
4.305
360137
11,635~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
0K3ALrr7OFLE 004ME1NNT
LOP
Ch
CWO5) LOP
7505n6o VAP"N
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Apr.67 12
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0
________________________________
Apr.7
_______
369
aDam
9
12
76
5 14
Apr.66
M4y5.0
M-94
6
61.471
6,750
7,117
1.244
~~~~~~~~~~~~~~~3.354
666
Apr.65
ixN
4.645
MIM
6
22.131
10
3.364
764
lOP
4151~~~~~~~~~~~~i
,15
SURFP
PROGRAMCOMPONENTSUMMARY
GOI o 50% (40% for Th II)
lBRD=50% (60%for Tk II)
CW FUNDING SPLM
'
~pPiqooimoooo-a Corofl(PMLJ
Peooooo kb.ho Sinoy
Sar a
Pardwi~~~~~~
2
Soar
Ckda
p~0
is o-
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20
Doe0,5
S.
Ja-Si
SE~~~~~LCO
DDc-96
6
4
J9
Apr-07
ESE
LCO
Dec96
Aoo-97
FS
LC
Fot-o
Aog-97
TA
TA
S..rong KiMutOg FO
ice
UCB
S--
996107
'997,98
StO.es
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FE
-9
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GI
C
Dc-S
IQ1102
2012103
5x 0 2 D 0 170 D 5 0 5 3 0
---
5L 0xD
IS
fl
(Cn.-t
2
450
Coo.
027
Inclodir
Ph,.clod rd
070
07
Pol.
TOTAL
515
963
S07
213
299
78
4.542
7 20
soLB
is
32
DxII
LAd&Woo PP.*I.0
F-eUk,
.I
149
rio7ai
l-e202
CUJDb'M
PED'
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Ac
Ro.d -APBN)
P09cSoWr (AFBN)
tl.O P%.Si Rortle
koOU
FEDr
uo
Dc-OS
-9
LZo-N"
J0
0
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.-----
-4
PP.9.01010W
'~~~~~~~~~~~~~~~~~~~wrooo~~~~~~~~~
coopooSl.. I
CocOarSoda3CsrB
Pseoral,i7g:
K096.
P04aQo
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am
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ra
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A,99
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Apr.0
Ap.0
30
36
xxx
xxx
xx25
Apr-906
473
567
930
_550
207
334
122
144
Si
rio
90
242
raT
12
374
312
D.-OS
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45a
360
Mw-Oo
30
701
a31
9
so
liD
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10,1731
412'.63
0
3~70
20i
657
749~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
:
31
56
329
345
179
2262
2
109V
illS*1
149
141
1
300
aoo
Orell
553
0
797
39.361
00:990
50~~~~~~~~~~~~~~~~~~~Ix
10
-
_____________________________________
DDLAJD.oeioprroo
ai TrosgTA
khoot
Ow SMNOT AMDAL 8ega
403II.1
3*5
756
x1327
5O
40
42
retx
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iSO
110,121,1
ass
0
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L.OS
152
.:1
16lo
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Fd-07
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us
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170
550
D
770
30.626
574
1. ISO~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
r.rD7
26,649
:.560l
1.107
2.214.
S0.0
PIZ
(IQ
CONSULTANT SERVICES (for Engineering services and Technical Assistance) and TRAINING
Refarence
1I______________________
Descripton
Engineering Services
COMPONENTA Road Construction
A1 Schems Design
_____
A2 ConstructionSupervision (CS)
COMPONENT B Urban Management and Quality of Life Improvements
a 11 Scheme
Design (APBD)
B 1.2 Construction Supetvision (APBD)
___
_
__
B 1.3 Construction Supervision(APBN)
_I
Agency Assisted
Objectve end Scope of Works
Re
Estimated
Resourcesl
Costs
(p months) niiiiloni
Time
(months)
Desirable
Start
Date
620,000 See Not

6.020,000 See Note
Dec
Jan-97
36
39
12
Jan-97
Mar-98
Mr9
4,000.000
610t000
60
29
Sep-96
Jan-9
500,0J0
36
Jan 97
.
RBINKOT
8INKOT
FS, Fhet Engineerug Dwesign

(FED), Ensro(mFen,E
lal and ResettlementPlans
EnEsueschemes
eare buit as designed and specified
Loral Governmrt FED oftrafficand environmentalianagement schemes

LocalGovernmenl Ensuesctemesare built as designedarv
dspedied
BINKOT
Ensue schemes are built as designed endspecifed
_410,000
90__,00
1,330,000
350,000_12_
~~~~~~~ ~~~~~~~~~
ENGINEERING
SERVICESTOTAL
~~~~~~~~~~~~~~~~~~~~
8,320,000=
Implementation Support
CO
lPONENT
A Road Construction imptementation Support
A3 Suppor to Project Management Uni (PMU)
A4 PerformanceMontoring Swveys
BINKOT
BINKOT
Projset Management, monior

and reporting
Surveys of proine outcome widicators
COMPONENT B Urban Management and Quality of Lile Improvements Implement;alion Support

B 2 Urban Ptanning Review
Local GovernmentlSupporthinniipa nninn oft B1, Strure Plan Review (82)and in
develo,ing
measuresfor ROW Prote-ction(B3)
Subtotal Implementation Support
5,110,000
Institutional Development
COlMPONENTD Urban Road Program Development
D1 IUrbanRoad Network Datsbase
BINKOT
500,000
I________
36
Policy Support
COMPONENT
r E: Policy Formulation, Articulation & Impltmenntaon
El Urban Transport Policy and Programs.
E2 Planning,Programming, and ExeaAion of Urban Road Works
O9i
500,000
Subtotal Institutional Development
__
BAPPENAS
BINKOT
Prepar urban tansport polcy for RepelitaVIl, and programs in case studycit
_
_updsi
BINKOT
n licie, procediresarid guidelines
80 JGF
525,000
See Note
6
Sep-96
Ort9 7
Tiechnicx AMsmorandumon Urban Roads for IUIDP)
Subtotal Policy Support

TrainIng
TECHNICAL ASSISTANCE TOTAL
cOMPONE., T C InstltuHfonal and Human Resource Development

Cl DLA Strengthening and Training for DLLAJ staff
C2 Stage 11Strengtheningof BINKOT AMDAL Uni
DGLT
BINKOT
Organzaional developmentof DLLAJ, and technical training of staff, and

preparationof techinicalguidelsies to assist in prepaation of ComponentB
Operation support, trainig of staff, and updat ng of guidelineson the
anvronmental and resettlementaspeps of urban road schemes
TRAINING TOTAL
TOTAL
Note:
=25,000
Componetnt A 2 & A2.: There are several contracts with different startinp times and durations.
Cornponent E 1: The work will be undertaken in stages.
6,135,000
1,0000000
36
Apr-
1_,000.000
36
Apr-97
___
2,000,000
16,455,000
The desirable start shown is for the first contract
w Z
0vX
- 77 ANNEX 10
(Page I of 7)
DRAFF MODEL PROJECT IMPLEMENTATIONMEMORANDUM(PIM)
1.
INTRODUCTION
1.1
The Government of Indonesia (GOT)has obtained a loan from the World Bank for the
implementation of the Strategic Urban Roads Infrastructure Project (SURIP - the Project). Details of the
Project are provided in the Loan Agreement and in the Staff Appraisal Report (SAR) of the World Bank.
1.2
This Project Implementation Memorandum (PIM) is a memorandum of agreements among the
implementing agencies, defining the roles and responsibilities of the implementing agencies, the
elements of the Project and its mode of execution, and providing a framework of agreement within which
the Annual Work Programs will be prepared for the duration of the project.
1.3
The executing and implementing agencies who are parties to this PIM are:
(a)
The Directorate General of Highways is the executing agency; and
(b)
The implementing agencies are the Directorate General of Land Transport and the Tingkat 11
Govemments of:
*
*
*
*
*
*
*
*
Kabupaten Cirebon;
Kabupaten Demak.
Kabupaten Kendal;
Kabupaten Kudus;
Kabupaten Pemalang;
Kotamadya Cirebon;
Kotamadya Pekalongan;
Kotamadya Semarang.
1.4
The Directorate of Urban Road Development (BINKOT) of the Directorate General of Highways
is the Lead Implementing Agency.
1.5
BAPPENAS and the DG. PUOD in the Ministry of Home Affairs (MHA) also have roles in the
project, but are not considered as implementing agencies for the purposes of this PIM.
- 78 ANNEX 10
(Page2 of 7)
2.
ROLESANDRESPONSIBILITIESOF IMPLEMENTINGAGENCIES
2.1
The roles and responsibilitiesof the ExecutingAgencyand of each of the Implementing
Agenciesare summarizedin the Table below.
Implementing
Responsibilities
Role
Agency
I. DirectorateGeneral
of Highways
ExecutingAgency
Overallcoordinationof project
preparationand implementation
* Strengtheningthe operational
capabilitiesof participatinglocal
governmentsin routineroad
*
maintenance
2. Directorateof Urban Lead Implementing

Road Development Agency
(BINKOT)
*
*
*
*
*
Establish,manage, superviseand direct

the ProjectManagementUnit
Providetechnicaldirectionof all
aspectsof the project
Manageprocurementof consultants,
contractorsand equipmentfor the
project, exceptfor that portionunder
the responsibilityof local government
Monitorall aspectsof the project, and
report on progress
Arrangefor and reporton technicaland
financialaudits
Ensure compliancewith GOI and
WorldBank environmentaland
resettlement
3. DirectorateGeneral
of Land Transport
4. TingkatII
Governments
regulations
and guidelines
* Direct and superviseconsultantsin

Implementing
training DLLAJstaff
Agencyfor DLLAJ
* Togetherwith MHA(PUOD),establish
(a) Implementing
agencyfor planning
DLLAJunits
and implementation * assignstaff to direct, superviseand
coordinateQLI preparation,execution
of QLI projectsin
and implementation
project cities.
* preparetraffic and environmental
managementplan
* undertakestructureplan review
-
* prepareQLI projects
* implementQLI projects
* LandAcquisition
* Undertakenecessaryactionsto project
functionand ROWfor Bypasses
* Preparationand implementationof
Resettlement
Action Plans (RAP)
- 79
ANNEX 10
(Page 3 of 7)
2.2
The Ministry of Home Affairs (MHA) through DG PUOD is the central agency to be consulted
for the establishment of the DLLAJ in Tingkat II Governments. DG PUOD will assist in:
(a)
the establishment of the DLLAJ in participating local governments; and
(b)
the reviews of funding levels for road maintenance for the additional roads to be
transferred to or constructed in the participating local governments as part of the Project.
2.3
BAPPENAS, through its Interministerial Working Group (IWG) for urban transport, will be
responsible for:
(a)
(b)
(c)
3.
formulating the urban transport policy;

overseeing the overall progress of the Project implementation; and
ensuring coordination of project activities among the implementing agencies.
GENERAL PROVISIONS
3.1
The Implementing Agencies declare their commitment to the objectives of the Project as set
forth in Schedule 2 to the Loan Agreement and to this end shall carry out their Respective Parts of the
Project with due diligence and efficiency and in conformity with appropriate administrative, financial,
engineering, environmental and resettlement practices, and shall provide, or cause to be provided,
promptly as needed, the funds, facilities, services and other resources required for the implementation of
the Project.
3.2
The Implementing Agencies shall carry out their Respective Parts of the Project in accordance
with technical criteria, cost estimates and financing arrangements, implementation timetables, operations
and maintenance programs, institutional capacity development programs and the Performance Indicators
satisfactory to GOI and the Bank.
3.3
The Lead Implementing Agency shall, through the PMU, ensure that procurement of the goods,
works and consultants' services required by the Implementing Agencies for their Respective Parts of the
Project, and to be financed out of the proceeds of the Loan, be governed by the provisions of Schedule 4
to the Loan Agreement.
3.4
The Implementing Agencies shall use the goods and services financed out of the proceeds of the
Loan exclusively for the purposes of their Respective Parts of the Project.
3.5
The Implementing Agencies, through the Executing Agency, shall monitor the implementation
of all proposed activities, and to inspect jointly with representatives of the World Bank if the Bank so
requests, from time to time, the goods, works and services procured under their Respective Parts of the
Project, including all records and documents relating thereto.
3.6
The Implementing Agencies shall promptly inform the Borrower of any condition which
interferes or threatens to interfere with the progress in carrying out their Respective Parts of the Project
and ensure that appropriate corrective measures are taken by the relevant Implementing Agency.
- 80
ANNEX 10
(Page 4 of 7)
3.7
The Executing Agency shall cause each Implementing Agency to:

(a)
from time to time, at the request of either the Executing Agency or the Bank, exchange
views regarding progress achieved in carrying out their Respective Parts of the Project; and
(b)
furnish to the Bank all such information and documents related thereto as may
reasonably be requested. Each Implementing Agency shall further agree to obtain such
information and documents as may be required by the Executing Agency to fulfill its
supervision, monitoring, recording and reporting obligations to the Bank.
4.
PROJECT IMPLEMENTATION AND PREPARATION
4.1
Technical Criteria and Guidelines
All aspects of project identification, feasibility studies, environmental and resettlement impact
assessment and final engineering designs, shall be undertaken according to existing Standards and
Guidelines as listed in Appendix 1, and others as may be prepared from time to time as part of the SURIP
program.
4.2
Resettlement Framework
Resettlement Action Plans are to be prepared, if necessary, following the provisions of the relevant SK
Walikotamadya/Bupati and Juklak.
4.3
Environmental Assessment, Management and Monitoring
All environmental assessment, management and monitoring will be undertaken according to GOI
regulations, and all required documents (UKL/RKL and UPL/RPL) are to be produced as required.
Relevant standards and guidelines produced by BINKOT are to be followed. Documents are to be made
available for public review. The contents are indicated in Appendix 2.
4.4
Review and Approval Road Construction Sub-components
Packages of Civil Works projects under the Road Construction Component of the Project are to be
prepared to a standard suitable for funding approval by the World Bank. A number of criteria that are to
be satisfied are listed in Appendix 3. Project preparation works will be programmed in the Annual Work
Program.
4.5
Preparation, Review and Approval of Urban Management and Quality of Life
Improvements
The Quality of Life Improvement (QLI) program will take advantage of the diversion of through traffic
to improve the quality, safety and amenity of the urban environment, and to enhance business functions.
To ensure the existing road space is not used merely to accommodate more motorized traffic, a series of
traffic, environmental, and land use management measures will be implemented once the bypasses are
open to traffic. This component comprises three activities for each location:
- 81 -
ANNEX 10
(Page 5 of 7)
*
A Traffic and Environmental Management Plan for the existing road and adjacent areas to be
implemented once the by-pass is opened including road scheme subprojects and other civil works to
be included in the medium term expenditure program (PJM) for the town, with a time based
implementation schedule;
A Structure Plan Review. Carrying out reviews of the impact of the construction of the bypass on
the land use plan/strategic structure and transport investment plans (PJM) for each town, together
with time based proposals for any additional road scheme subprojects required as a result of this
review to be included in the traffic and environmental management plan; and
Protection of the function and the Right of Way of the bypass, through regulations, and by making
provision for development at acceptable locations along the bypass.
Outline scopes of the activities, detailed guidelines on traffic and environmental management measures,
and civil works suitable for funding are set out in Appendix 4. A time based approach to the preparation
of a potential package of measures for each town, as well as to carry out the reviews of the Strategic
Structure Plans and transport investment plans, will be developed as part of the Annual Work Program.
This approach will include local participation of business and civic groups.
5.
PROJECT IMPLEMENTION ARRANGEMENTS
5.1
Project Management Unit
Overall project management will be provided through a Project Management Unit (PMU). Staff will be
assigned by BINKOT to the positions outlined below, and consultants will be appointed to support the
PMU in discharging its functions. The key staff are:
*
-
Head of PMU
Project Manager
Project Officer
5.2
- overall management of the Project, assumed by the Director of BINKOT;

- for day to day arrangements on financial matters, directly responsible to the
Head of PMU, and working hand in hand with the Project Officer; and
- the day to day management on technical matters, directly responsible to the
Head of PMU, and assisted by the Project Management Consultant.
Tingkat II Government
The Development Planning Agency in each Participating Local Government (BAPPEDA 11)shall be
responsible for overall supervision of Sub-projects under the Urban Management and Quality of Life
Component of the Project, including programming and planning of civil works under such Sub-projects.
To this end, BAPPEDA II shall assign, and thereafter maintain throughout Project implementation,
qualified and experienced technical officers who shall carry out day-to-day coordination activities,
including preparation and dissemination of consolidated progress reports. Implementation under
Component B is by Dinas PU Kotamadya/Kabupaten (DPUK).
5.3
Road Construction Component
Implementation of the Road Construction Component will be undertaken by the Directorate General of
- 82 ANNEX 10
(Page 6 of 7)
Highways, through the Provincial Bina Marga (Dinas PU Bina Marga). Supervision will be through the
Regional Betterment Office (RBO) Bandung (for Cirebon), and the P3TNAS in Semarang (for cities in
Central Java).
5.4
Annual Work Program
An Annual Work Program (AWP) will be prepared by each Implementing Agency for the following
fiscal year and provided to the Project Management Unit (PMU) of DGH by the 15th July of each year.
The AWPs will set out for each sub-project and activity, the scope, costs, time-based implementation
schedules, performance monitoring targets, a financing plan and detailed budget arrangements. An
outline of an AWP is contained in Appendix 5.
5.5
Progress Reporting and Monitoring
Overall progress monitoring and reporting, and the monitoring and reporting of performance indicators
will be the responsibility of the PMU. Agreed Performance Indicators and output targets are given in
Appendix 6. The PMU will detail the requirements for project monitoring and reporting, to be
undertaken by the Implementing Agencies.
5.6
Annual Review of Progress
An annual review of the project will be undertaken, jointly by GOI and the Bank. This review will
provide the opportunity to review the progress of the implementation of the Project, and to institute
actions to mitigate unsatisfactory performance. The review will take place each October, to coordinate
with the GOI Budget process, and to ensure appropriate provision is made for counterpart funds in GOI
budgets. The review will focus on the following:
*
the evaluation of progress for the preceding fiscal year;

the draft AWPs proposed for the following fiscal year; and
performance monitoring targets.
6.
DISBURSEMENTS AND FINANCIAL MANAGEMENT
6.1
Budget Consultations and Approvals
Budgeting for each sub-project and for works under the Project will be undertaken as part of the annual
budgeting process. GOI counterpart funding consistent with the AWP requirements will be provided.
6.2
Project Accounting and Auditing Arrangements
The PMU will have overall responsibility for establishing, maintaining and monitoring a uniform project
accounting system. The PMU will also prepare project accounts of all components implemented directly
by the central agencies. Project accounts for sub-components implemented by local governments will be
the responsibility of the structural financial agency within the local government secretariat, and
separateaccounts for each will be kept. The PMU will also be responsible for consolidating quarterly
project accounts and submitting them annually for consolidated audit purposes by the BPKP Central
83
ANNEX 10
(Page 7 of 7)
Office. The PMU will also coordinate statements of expenditure audits with the Directorate General for
the Budget, Bank Indonesia and the State Audit Board's Central Office.
7.
PROCUREMENT
7.1
Procurement of works and goods will follow the "Guidelines for Procurement under IBRD Loans
and IDA Credits" dated January 1995 and revised in January 1996. Large civil works contracts costing
US$3 million or more and goods contracts costing US$250,000 or more would be procured following
International Competitive Bidding (ICB) procedures, using the Bank's standard bidding documents
(SBD). A general procurement notice would be issued in advance to encourage participation of eligible
parties. Domestic preference would be provided during bid evaluation at a rate of 15 percent of the CIF
price or the applicable customs duty, whichever is lower for local manufacturers participating in the ICB
procurement of goods. Smaller civil works contracts, valued at less than US$3 million would be
procured under National Competitive Bidding (NCB) procedures acceptable to the Bank.
8.
COMPLETION OF PROJECT
8.1
Preparation Of Plans For Future Operation And Maintenance
The bypass roads to be constructed will be designated as national roads, and DGH will be responsible for
ongoing maintenance. A Ministerial Decree will be prepared to implement the road classification before
expiry of the maintenance warranty period. Existing national roads that are replaced by the bypass will
be handed over to the Kotamadya or Kabupaten at the same time as new bypass roads are classified. A
review of the financial capabilities of Tingkat II government for increased road maintenance will be
undertaken as part of the Annual Review.
8.2
Preparation of the Report upon Project Completion
On completion of the project and within six months of the Loan closing date, BINKOT, together with the
participating Kabupatens and Kotamadyas, will prepare a report for review by GOI and the Bank.
9.
OTHER PROVISIONS
APPENDICES
1. Technical Standards and Guidelines
2. Environmental Impact Assessment: Critical Issues to be Included in Documentation
(SeeSAR Annex 8)
3. Criteria for Approval of Road Scheme Sub-projects for Funding (SeeSAR Annex5)
4. Urban Management and "Quality of Life" Improvements - Outline Scope of Activities
(See SAR Annex 6)
5. Outline of Annual Work Program (See SAR Annex 11)

6. Performance Indicators and Outcome Targets (See SAR Annex 2)
- 84 -
ANNEX 11
OUTLINE OF ANNUALWORKPROGRAM
Objectives:
The Annual Work Program is to be prepared by each Implementing Agency, and furnished to the
Project Management Unit, for consolidation into a single document for the Project. It is intended to be a flexible
working document to be adjusted every year.
Section 1. Work Program for Sub-projects and Other Activities
Description of all Sub-projects and other activities to be carried out during the next fiscal year by the implementing
agency. An Annex to the Annual Work Program will provide a clear identification of these Sub-projects, and a detailed
Project Implementation Schedule.
Section 2. Procurement
Specific procurement activities to be undertaken, including preparation and processing of bidding documents. To be
identified in Project Implementation Schedule.
Section 3. Engineering Services and Technical Assistance
Provides details of all planned activities related to project preparation (for both sub-projects and QLI projects);
construction supervision activities; and the Technical Assistance program. A detailed implementation schedule will
identify all necessary steps for procurement, and give the proposed timetable.
Section 4. Financing and Disbursement
Provide details of proposed financing sources and timing for the provision of such funds for all project components.
Detailed disbursement schedules are to be provided for all components.
Section 5. Environmental Assessment, Management and Monitoring.
Provide detailed information and an implementation schedule for all aspects of proposed environmental assessment
studies to be undertaken; particular activities proposed for environmental management; and the monitoring of
environmental impacts to be undertaken during the period.
Section 6. Land Acquisition and Resettlement
Provide detailed information about proposed land acquisition for the year, including planned expenditure program and
sources of funding. Provide work program and schedule detailing activities related to the preparation of Resettlement
Action Plans; community participation as part of resettlement/compensation;and monitoring as required.
Section 7.
Other Matters
Any other items not specifically provided for in the above.
APPENDICES
I.
2.
3.
4.
5.
Detailed Descriptions of Sub-Projects and Other Activities;

Detailed Procurement Schedules;
Program of Engineering Services and Technical Assistance;
Project Implementation Schedule covering all components;
Detailed Schedule of Disbursements.
- 85 -
ANNEX
STRATEGIC URBAN ROADS INFRASTRUCTURE
PROCUREMENT
PROJECT
PACKAGING & PRIOR REVIEW CONTRACT PROFILE
Range of Contract Values COMPONENT
Estimated value
Contracts
I
wAthineach rang
Estimated
ValueAdded Value
Value
Tax
including
(US$ million) PPN
Tax
(Inc.taxand contingencies) &

(US $ million)
12
Sub Project
Number
Cumulative Value
ContractB
abovethreshold
Estimated
Number
Value
(US $ million)
Percentageof
Total ContractB
*bove Threshold
Estimated
Number
Value
(US miflion)
Civil Works
A:Bypass/RlngRoads
SemarangNRR
Section 1 Package2
Demak
Kudus
10,000 to 14,999
10.23
13.20
11.64
subtotal
35.07
PemalangSectionl
PemalangSection2
Weleri
Kallwungu Package1
Semarang NRR
Section 1 Padeap1
Section 2
KalibantengFlyover
Additional Works
5.53
7.70
7.87
5.84
8.31
5.80
7.21
4.68
(a. Cirebo, a PemalungSection2)
5000 to 9999
0.00
subtotal
52.95
Cirebon Section 1
KaliwunguPackage2
4.68
4.87
4.31
Semanng NRRSed 31SSUDP
B: Cirebon PortAccess
3,000 to 4999
0.51
0.66
0.58
1.75
0.28
0.39
0.39
0.29
0.00
0.42
0.29
0.36
0.23
4.84
subtotal
18.69
Review threhhold US$ 3 million

SUBTOTAL
Component B:
10 Conlracts
106.71
2.65
0 32
0.24
0.22
0.00
0.24
0.93
5.34
10.74
13.86
12.22
36.83
55.59
19.63
0.89
23.02
0.89
23.02
1.12
0.056
1.18
1.12
0.06
1.18
0.86
0.71
0.04
0.04
0.90
0.74
1.57
0.08
1.65
24.82
TOTAL
131.53,
Conrctn a par of ComponentB1 Trafficand EnvironmentalMangement
1.02
6.36
25.84
137.88
A:CirebonRing Road
Section2
1,000 to 1999
subtotal
A Pekdlongan
A: Cirebon Ring Road
Section 3
0 to 999
Belowreview threshold
subtotal
subtotal
Goods:
Only one goodscontractvalue US $3.7 millionfor prior review
26.71%
10.34%
92.42
11
67.03%
37.93%
112.05
13
81.26%
4.83%
135.06
97.95%
55.17%
11
136.24
27
98.81%
93.10%
137.88
29
100.00%
100.00%
112.05
22.13
subtotal
36.83
4.91
5.11
4.52
0.00
5.08
22.13
2,000 to 2,999
5.81
8.09
8.27
6.14
0.00
8.72
6.09
7.57
4.91
0.00
16
18.74%
29
- 86 -
ANNEX 13
(Page I of 2)
DISBURSEMENTS: COMPARISON OF PROFILES
Quarters
from
Indonesia
KR6
SURIP
HSL2
KR3
KREI
Board Transport
Approval Profile (Ln. 3490) (Ln. 3579) (Ln. 3712) (Ln. 3732) (Proposed)
% of Loan Disbursed
0
6
14
22
7
16
31
49
7
13
24
32
10
12
38
50
56
79
50
60
14
58
84
16
70
18,
82
20
90
22
94 _
98 i
100
2
4
6
8
24
26
5
11
21
30
7
10
16
24
3
12
24
38
50
62
72
__r_
83
90
97
100
i
_____
100
90
80
.0
80-+IndonesiaTransportProfile%
70
LoanDisbursed
-- I6 KR3
(Ln. 3490)
.o
650
50
_-KREI
(Ln.3579)
O
40
-40-- KR5
(Ln. 3732)
30
0- HSL2
(Ln. 3712)
20
-+-
10
0
1
10 11
Quartemfrom Board Approval
12
13
SURIP(Proposed)
- 87ANNEX 13
( Page 2 of 2)
ESTIMATED SCHEDULE OF DISBURSEMENTS BY QUARTER
FiscalYear
1997
QuarterEnding
31-Dec-96
31-Mar-97
30-Jun-97
Quarterly(US$ m)
3.0
3.0
4.0
Cumulative(US$ m)
3.0
6.0
10.0
Cumulative
3%
7%
12%
1998
30-Sep-97
31-Dec-97
31-Mar-98
30-Jun-98
5.5
5.7
5.7
5.7
15.5
21.2
26.9
32.6
18%
24%
31%
38%
1999
30-Sep-98
31-Dec-98
31-Mar-99
30-Jun-99
5.3
5.3
5.3
5.0
37.9
43.2
48.5
53.5
44%
50%
56%
62%
2000
30-Sep-99
31-Dec-99
31-Mar-00
30-Jun-00
4.7
4.7
4.7
4.7
58.2
62.9
67.6
72.3
67%
72%
78%
83%
2001
30-Sep-00
31-Dec-00
31-Mar-01
30-Jun-01
3.1
3.0
3.0
3.0
75.4
78.4
81.4
84.4
87%
90%
94%
97%
2002
30-Sep-01
31-Dec-01
2.0
0.5
86.4
86.9
99%
100%
Assumptions:efectivenessin October1995;closingdate of September30, 2001.
- 88ANNEX 14
STRATEGIC
PROJECT
SUPERVISION STAFFING AND SCHEDULE

Mission Dates
Purpose
October 1996
ProjectLaunchWorkshop
January1997
SupervisionMission
April 1997
SupervisionMission
StafMing
Requirements(sw)
UrbanTransportSpecialist(I sw)
EnvironmentalSpecialist(I sw)
ResettlementSpecialist(I sw)
HighwayEngineer(I sw)
TransportPlanner(I sw)
OperationsOfficer(I sw)
DisbursementOfficer(I sw)
Lawyer (I sw)
Operations Officer (I sw)
October1997
AnnualReviewMission
January 1998
SupervisionMission
April 1998
SupervisionMission
HighwayEngineer(I sw)
OperationsOfficer(I sw)
Resettlement Specialist (1 sw)
TransportPlanner(1 sw)
October1998
AnnualReviewMission
April 1999
SupervisionMission
Operations Officer (1 sw)
October1999
AnnualReviewMission
ResetlementSpecialist(I sw)
April2000
SupervisionMission
October2000
AnnualReviewMission
ResettementSpecialist(I sw)
April2001
SupervisionMission
August2001
ImplementationCompletionMission
Total numberof staffweeks by BankFY for supervisionis as follows:

20-25(FY97),20-25(FY98),15-20(FY99),15-20(FY00),15-20(FY01),5-7 (FY02)
- 89 ANNEX 15
(Page I of 8)
STRATEGIC
PROJECT
ECONOMICANALYSIS
1.
This annex provides some details of the inputs and outputs of the economic analysis of
the seven road scheme sub-projects in component A of the project. Further information on
inputs, methodology and sensitivity testing is provided in documents on the project file.
2.
Scheme Details and Total Costs. The schemes analyzed are those described in Annex
3, except as noted below. The sub project length for analysis is the distance between the centre
lines of the junctions with the existing North Java Corridor at the start and end of the sub-project.
This may be less than the road length included in the engineering designs which will generally
also include all of the junction at either of the sub project.
*
-
Cirebon By pass - the costs include section 3 (the western junction), and an at grade
crossing of both railways in section 2.
Pemalang. - the costs are for alternative 1, which includes widening of the existing
road over section 2 - the western section of the by pass.
Semarang Northern Ring Road -the costs are for sections I & 2, excluding the
construction of the Kalibanteng Flyover.
3.
Vehicle Operating Cost (VOC) Savings. The VOC savings have been calculated by
comparing VOC on the existing and new (bypass sub project) roads with the VOC on the
existing road without the new bypass for the forecast traffic volumes at five year intervals. VOC
on the existing road are forecast to grow faster than the forecast growth in traffic as congestion
builds up.
4.
The rate of growth of VOC savings will be reduced at the time of opening of toll road
sections parallel to the sub project. It has been assumed that 40% of the by pass traffic will
divert to the parallel toll road section.
5.
The Kaliwungu by pass is longer than the existing road. As a result, for the initial years
of operation of the by pass VOC are greater than on the existing road, and overall accident
benefits are much higher than VOC benefits.
- 90 -
ANNEX 15
(Page 2 of 8)
CIREBON Sections
Length
AADT 4W
1, 2 & 3
6.13 kms. (for economic analysis)

24776 in opening year
Toll Road Opening Year Assumed 2002
Costs and benefitsin Rp million

Passenger Accident Undiscounted Without Time
VOC Saving
YEAR Total Maintenance
Savings
LV & Bus Trucks Time Savings Benefits Net Benefits
Cost
Cost
-10807
-10807
1997 -10807
-10806
-10806
1998 -10806
3288
5901
703
2613
1369
1243
-27
1999
3288
5901
703
2613
1369
1243
-27
2000
3288
5901
703
2613
1369
1243
-27
2001
3288
5901
703
2613
1369
1243
-27
2002
3288
5901
703
2613
1369
1243
-27
2003
2548
4933
596
2385
1040
939
-27
2004
640
3164
605
2524
1080
-2023
978
2005
2724
5387
614
2663
1120
1017
-27
2006
2812
5615
623
2803
1160
1056
-27
2007
2901
5844
633
2943
1095
1200
-27
2008
3233
6552
663
3319
1378
1219
-27
2009
3567
7264
694
3697
1556
1344
-27
2010
3899
7972
725
4073
1733
1468
-27
2011
2235
6686
755
4451
1592
1911
-2023
2012
4564
786
9392
4828
2089
1716
-27
2013
5203
10735
819
5532
2465
1946
-27
2014
5846
854
12084
6238
2842
2177
-27
2015
6485
13428
888
6943
3218
2406
-27
2016
7127
14775
922
7648
3595
-27
2637
2017
7768
16121
8353
956
2868
3971
-27
2018
Discount rate:
15.0%
Overall cost/km
Routine Maint./km
Periodic cost/km
3607
4.4
330
ERR
24.2%
13.0%
FYRR
27.3%
15.2%
NPV
12,257 Inc. Time Savings
(2,263) excl. Time Savings
Accident Benefits as %
of VOC Benefits
25%
Contribution of time savings to

67%
(discounted) benefits.
IRR: Internal rate of return
NPV: Net Present Value
FYRR: First year rate of return
Passenger trips with economic value = 25%
- 91 -
ANNEX 15
(Page 3 of 8)
PEMALANG
Length
AADT4W
9.93 kms.
12250 in openingyear *
*
Toll Road OpeningYearAssumed2006
Assuming
2 waytrafficon existingroad
Costsand benefitsIn Rp million

YEAR
Total
Cost
Passenger
TimeSaving
VOC Saving
Maintenance
LV & Bus
Trucks
Cost
1997
1998 -12869.5
1999 -12869.5
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Discountrate:
Overallcost/km
RoutineMaintenance/km
Periodiccostlkm
-44
-44
-44
-44
-44
-44
-3277
-44
-44
-44
-44
-44
-44
-3277
-44
-44
-44
-44
-44
-44
15.00%
1120
1250
1380
1510
1662
1814
1967
2119
2271
2278
2284
2291
2298
2304
2512
2720
2929
3137
3345
3567
3079
3522
3965
4407
4923
5438
5954
6469
6984
7145
7307
7468
7629
7790
8604
9418
10232
11046
11860
12734
1257
1434
1611
1787
2033
2279
2524
2770
3015
3044
3072
3100
3129
3157
3555
3952
4350
4748
5146
5577
IRR
FYRR
28.65% 23.34%
15.02% 11.38%
2205
4.4
330
IRR: Internalrate of return

NPV: Net PresentValue
FYRR:First year rate of return
Passengertripswith economicvalue = 25%
Accident Undiscounted
Net Beneflts
Beneflts
596
637
677
717
760
802
844
887
929
926
924
921
919
916
956
995
1035
1075
1115
1155
0
-12869.5
-12869.5
6008
6799
7589
8377
9334
10289
8012
12201
13155
13349
13543
13736
13931
10890
15583
17041
18502
19962
21422
22989
NPV
22,000 incl. Time Savings
27 excl. Time Savings
AccidentBenefitsas %
of VOC Benefits
19%
Contributionof time savingsto

(discounted)benefits.
55%
WlthoutTime
Savings
0.0
-12869.5
-12870
2929
3277
3624
3970
4411
4851
2058
5732
6171
6204
6236
6268
6302
3100
6979
7623
8270
8916
9562
10255
- 92 -
ANNEX 15
(Page 4 of 8)
WELERI BYPASS
Length km AADT 4W
Project road:
4.62
Existing road:
4.5
7551 with project
Toll Road Opening Year Assumed
2005
Costs and benefits in Rp million
YEAR
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Total
Cost
MAINT.
COST
VOC Saving
LV & BUS TRUCKS
PASSENGE Accident
TIMESAVIN Benefits
-8506.5
-8506.5
Discount rate:
Overall cost/km
Routine Maint./km
Periodic cost/km
-20
-20
-20
-20
-20
-20
-1525
-20
-20
-20
-20
-20
-20
-1525
-20
-20
-20
-20
-20
-20
493
570
647
723
800
1036
1271
1506
1741
1977
1854
1731
1608
1485
1362
1758
2154
2550
2946
3342
477
577
677
777
876
1195
1514
1833
2152
2471
2313
2155
1997
1839
1680
2251
2822
3393
3963
4534
1154
1357
1560
1764
1967
2442
2917
3392
3867
4341
4142
3943
3744
3545
3346
4193
5041
5888
6735
7583
591
634
678
721
764
809
855
900
945
991
938
886
834
782
730
762
793
825
857
888
UNDISCOU
NET BENEFI
-8506.5
-8506.5
2695
3118
3542
3965
4387
5462
5032
7611
8685
9760
9227
8695
8163
6126
7098
8944
10790
12636
14481
16327
15.00% IRR
FYRR
NPV
24.39%
15.84%
9.06%
399 excl. Time Savings
15.36%
3521
4.4
330
of VOC Benefits
7%

46%
IRR: Internal Rate of Return
FYRR: First Year Rate of Return
WITHOUT
TIME
-8507
-8507
1541
1761
1982
2201
2420
3020
2115
4219
4818
5419
5085
4752
4419
2581
3752
4751
5749
6748
7746
8744
- 93 -
ANNEX 15
(Page 5 of 8)
KALIWUNGUBy Pass
Lengthkm AADT 4W
Project road:
7.58
16465 in openingyear
6.55
4116 with project
Existingroad:
Toll Road OpeningYear Assumed 2005
Costsand benefitsIn Rp million
YEAR
TOTAL
Accident
MAINTENANVOCSAVINVOCSAVIN PASSENGE
COST
COST
1999
2000 -11912.5
2001 -11912.5
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Discountrate:
Overallcost/km
RoutineMaint./km
Periodiccost/km
LV & BUS
-33
-33
-33
-33
-33
-33
-2051
-33
-33
-33
-33
-33
-33
-2051
-33
-33
-33
-33
-33
-33
15.00%
TIME SAVIN Benefits
TRUCKS
-1051
-1060
-688
-317
55
427
798
667
535
403
271
139
792
1445
2098
2750
3403
3913
4501
5175
-834
-792
-406
-20
366
752
1138
1015
893
771
648
526
1209
1892
2575
3258
3941
4985
5732
6592
ERR
FYRR
27.01% 13.16%
6.20%
2.24%
3612
4.4
330
3669
4122
5346
6571
7795
9019
10244
9708
9171
8635
8099
7563
9558
11554
13549
15545
17540
19791
22166
24826
WITHOUT
UNDISCOUNT
NETBENEFIT TIME
1384
1471
1561
1651
1741
1831
1921
1822
1723
1624
1525
1426
1488
1550
1611
1673
1735
1797
1859
1921
-11913
-11913
3135
3708
5780
7852
9924
11996
12050
13179
12289
11400
10510
9621
13014
14390
19800
23193
26586
30453
34225
38481
NPV
-11,608 excl. Time Savings
of VOC Benefits
259%

79%
IRR: InternalRate of Return
NPV:Net PresentValue
FYRR:First Year Rateof Return
Passengertrips with economicvalue = 25%
-11912.5
-11912.5
-534
-414
434
1281
2129
2977
1806
3471
3118
2765
2411
2058
3456
2836
6251
7648
9046
10662
12059
13655
- 94 -
ANNEX 15
(Page 6 of 8)
SEMARANG Northern Ring Road Sections 1 & 2

Length km
AADT 4W
7.72 (for economic analysis)

Costs and benefits In Rp million
YEAR
TOTAL
COST
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
MAINTENAN VOC SAVIN VOC SAVIN PASSENGE Accident

COST
LV & BUS TRUCKS TIME SAVIN Benefits
UNDISCOUNT
BENEFITS
-27610
-27610
Discount rate:
Overall costkm
Routine Maint./km
Periodic cosVkm
-32
-32
-32
-32
-32
-32
-2376
-32
-32
-32
-32
-32
-32
-2376
-32
-32
-32
-32
-32
-32
907
1037
1167
1296
1426
1717
2009
2300
2591
2882
3558
4234
4910
5586
6262
6582
6902
7222
7542
7862
2035
2438
2840
3243
3646
4657
5669
6680
7691
8703
11305
13907
16510
19112
21714
23152
24589
26027
27464
28901
15.00%
ERR
21.07%
15.96%
FYRR
10.65%
7.04%
4559
4.4
330
IRR: Internal rate of return

FYRR: First year rate of return
1991
2342
2693
3043
3394
4100
4805
5511
6216
6922
8576
10230
11884
13538
15192
16257
17321
18386
19450
20515
979
1046
1112
1179
1245
1319
1393
1467
1541
1615
1689
1764
1838
1913
1987
2074
2160
2246
2332
2418
-27610
-27610
5880
6831
7780
8729
9679
11761
11500
15926
18007
20090
25096
30103
35110
37773
45123
48033
50940
53849
56756
59664
NPV
4,172 excl. Time Savings
of VOC Benfits
15%

35%
WITHOUT
TIME
-27610
-27610
3889
4489
5087
5686
6285
7661
6695
10415
11791
13168
16520
19873
23226
24235
29931
31776
33619
35463
37306
39149
- 95 -
ANNEX 15
(Page 7 of 8)
DEMAK BYPASS
Lengthkm AADT4W
Projectroad:
6.93
13505 in openingyear
Existingroad:
6.45
8214 with project
Toll Road OpeningYear Assumed 2007
Costs and benefitsin Rp million
YEAR
TOTAL
COST
MAINTENAN VOC SAVIN VOC SAVIN PASSENGE Accident

COST
1997
1998
1999 -14791.5
2000 -14791.5
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Discountrate:
Overallcost/km
RoutineMaint./km
Periodiccost/km
-30
-30
-30
-30
-30
-30
-2287
-30
-30
-30
-30
-30
-30
-2287
-30
-30
-30
-30
-30
-30
251
301
351
528
704
880
1057
1233
1171
1109
1046
984
921
1252
1582
1912
2242
2572
2880
3226
200
283
365
615
865
1115
1366
1616
1538
1460
1382
1304
1227
1701
2175
2649
3123
3597
4143
4640
1901
2146
2391
2867
3343
3820
4296
4772
4604
4436
4268
4100
3931
4761
5590
6420
7249
8078
9002
9992
UNDISCNE
BENEFITS
945
1007
1068
1131
1195
1258
1322
1385
1313
1241
1169
1096
1024
1069
1113
1157
1202
1246
1290
1334
-14791.5
-14791.5
3267
3707
4145
5111
6077
7043
5754
8976
8595
8216
7835
7454
7073
6496
10430
12108
13786
15463
17285
19162
15.00% IRR
FYRR
NPV
17.24% 11.04%
6.93%
4.62% -11,869 excl. Time Savings
3491
4.4
330
IRR: InternalRateof Return

FYRR:FirstYear Rateof Return
Passengertrips with economicvalue = 25%
of VOC Benefits
62%

56%
WITHOUT
TIME
-14791.5
-14791.5
1366
1561
1754
2244
2734
3223
1458
4204
3991
3780
3567
3354
3142
1735
4840
5688
6537
7385
8283
9170
- 96 -
ANNEX 15
(Page 8 of 8)
KUDUS
Lengthkm
AADT4W
Projectroad:
10.4
9958 in openingyear
Existingroad:
9.83
10303with project
Toll Road OpeningYear Assumed2007
Costs and BenefitsIn Rp million
YEAR
TOTAL
COST
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
MAINTENAN VOC SAVIN VOC SAVIN PASSENGEAccident

COST
-12830
-12830
Discountrate:
Overallcost/km
RoutineMaint./km
Periodiccosttkm
-46
-46
-46
-46
-46
-46
-3432
-46
-46
-46
-46
-46
-46
-3432
-46
-46
-46
-46
-46
-46
15.00%
247
308
368
429
489
799
1108
1418
1728
2037
2057
2077
2097
2117
2137
2980
3824
4667
5511
6354
342
471
599
728
857
1329
1801
2273
2745
3216
3193
3169
3145
3121
3097
4311
5524
6737
7950
9163
ERR
FYRR
29.69% 20.12%
15.56%
8.51%
2284
4.4
330
2979
3488
3997
4505
5014
6306
7599
8891
10184
11477
11528
11579
11630
11681
11732
15233
18733
22234
25735
29235
1640
1764
1889
2013
2137
2265
2393
2521
2649
2777
2634
2490
2347
2203
2060
2149
2238
2327
2416
2506
UNDISCOUNT
BENEFITS
WITHOUT
TIME
-12830
-12830
5162
5985
6807
7629
8451
10653
9469
15057
17260
19461
19366
19269
19173
15690
18980
24627
30273
35919
41566
47212
NPV
1,002 excl. Time Savings
AccidentBenefitsas % of VOC Benefits

75%
Contributionof time savingsto discountedbenefits
61%
IRR: InternalRate of Return

FYRR:First Year Rateof Return
Passengertrips with economicvalue= 25%
-12830
-12830
2183
2497
2810
3124
3437
4347
1870
6166
7076
7984
7838
7690
7543
4009
7248
9394
11540
13685
15831
17977
- 97 -
ANNEX
16
DOCUMENTS
ON FILE
1.
Preparation of the Primary Urban Road Component of the Proposed Strategic
Urban Roads Infrastructure Project, Louis Berger International, Inc. in association with P. T
Indec and Associates, Ltd., P. T Eskapindo Matra, P. T Indah Karya:
1. Inception Report, March 1995

2. Interim Report 1, June 1995
3. Travel Time and Delay Surveys, June 1995
4. Summary Environmental Assessment, August 1995
5. Executive Summary of the Summary Environmental Assessment, Dec. 1995
6. Strategic Assessment Working Paper on the South Bali Corridor, August 1995
7. Strategic Assessment Working Paper on the North Sumatra Corridor, Aug. '95
8. Interim Report on Strategic Assessment, July 1995
9. Technical Report of License Plate OD-Survey
10. Technical Report of Air Quality and Noise Baseline Survey
11. Technical Report of Social Economic Survey for PAP on Cirebon Section 1
12. Final Report (Two Volumes) February 1996
2.
Strategic Urban Roads Infrastructure Project, Travers Morgan July 1995:

I. Cleaning of SJJP data, July 1995
2. Review of Data Sources, June 1995
3.
Presentation Folder brought by Indonesian Delegation to Negotiations:VOLUME 1

Section I
Section 2
Section 3
Section 4
4.
Financial
Component B: QLI Component
Criteria for Funding Schemes (Component A Subprojects)
Economic Evaluation

Section 5
Section 6
Section 7
Land Acquisition for Year I Schemes

KotamadyalKabupaten Decree (SK)
Environment Assessment
- 98 -
5.

Section 8
Section 9
Section 10
Section 11
Section 12
6.
Urban Transport Policy

Summary of Project TA & Consultant Services Component
Loan Processing and Implementation Arrangements
DIP & PO FY 1996/1997
Miscellaneous
Other Documents brought by the Indonesian Delegation to Negotiations

l.
2.
3.
4.
5.
6.
7.
Short list of Consultant for Consultancy Services of General Consultant

support to PMU (including the criteria method of evaluation)
Short list of Consultant for TA of Urban Transport Policy
(including the criteria method of evaluation)
Complete Package of Contract Document of Weleri (Vol. 1, 2, 3, 4 and 5)
Contract Drawing Document (Vol. 4) of Cirebon Section 1, Pemalang Section 1,
Pekalongan, Weleri, Kaliwungu Section I & 2, Semarang Section I Package 1,
Demak, and Kudus
Engineering Estimate
Landscape Plan applied to all those proposed bypass
AMDAL Documents (18);
*
Executive Summary of the SEA (l)
*
Summary Environmental Assessment (SEA)
(1)
* Ringkasan Eksekutif Rangkuman Kajian Lingkungan
*
RKL and RPL Cirebon Bypass
(2)
* KL, UKL and UPL Pemalang Bypass
(3)
*
KL, UKL, and UPL Weleri and Kaliwungu
(5)
* RKL and RPL Semarang NRR
(2)
(1)
*
Kerangka Acuan Kalibanteng FO
*
RKL and RPL Kudus Bypass
(2)
(1)
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IMAGING
Report
No:
Type: SAR
15295
IND

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Report No. 15295-IND

STAFF APPRAISAL REPORT

STRATEGIC URBAN ROADS INFRASTRUCTURE PROJECT

Infrastructure Operations Division

= Indonesia Rupiah (Rp)

WEIGHTS AND MEASURES

FISCAL YEAR OF BORROWER

INDONESIAN WORDS AND ACRONYMS

Annual Average Daily Traffic

Lalu Lintas Harian Rata-Rata

Annual Local GovemmentDevelopmentBudget

AnggaranPendapatandan Belanja Daerah

Annual National DevelopmentBudget

AnggaranPendapatandan Belanja Negara

Annual Work Program

Direktorat Bina JalanKota

Developmentand FinancialControle Board

Direktorat JenderalCipta Karya

DirectorateGeneralof Land Transportation

DaerahKhusus Ibukota Jakarta

Dinas Lalu Lintas AngkutanJalan

Provincial Office of Public Work

Dinas PekerjaanUmum Propinsi

District/Municipal Office of Public Works

Govemmentof Republicof Indonesia

Heavy LoadedRoadImprovementProject(of OECF)

Proyck PeningkatanJalanUntuk Kendaraaan

SecondHighway SectorLoan (Ln. 3712-IND)

PresidentialInstruction, a centralgovemmentgrant programto

Kelompok Kerja Antar Departemen

Region comprisingJakarta,Bogor, Tangerangand Bekasi

IndonesiaToll Road Corporation

P.T. JasaMarga (Persero)

Third JABOTABEK UrbanDevelopmentProject(Ln. 3246IND)

Regency/District(Level 11autonomouslocal government)

IncorporatedMunicipality/City (Level 11autonomouslocal

Local Institutional DevelopmentAction Plan

Koridor TransportasiPantai UtaraJawa

Non Motorized Transport

Nilai Bersih SaatIni

DanaKerjasamaEkonomiLuar Negeri Jepang

Policy Statement and Action Plan

Rumusan Kebijaksanaan dan Rancangan

Directorate General for Public Administration and Regional

Pemerintah Umum dan Otonomi Daerah

Regional Betterment Office

Proyck Perencanaan dan Pengawasan Teknis

Regional Cities Urban Transport Project (Ln. 2817-IND)

Proyek Transportasi Kota

Regional Development Area

Wilayah Pengembangan Regional

Five Year Development Plan

Rencana Pembangunan Lima Tahun

Revenue Improvement Action Plan

Rencana Kegiatan Untuk Peningkatan

Road Improvement and Development Projects Database

Kumpulan Data Dasar Proyek Peningkatan

Daerah Milik Jalan