Metropolitan Sanitation Management Investment Project (RRP INO 43251-025)

Project Number: 43251-025 March 2014

Indonesia: Metropolitan Sanitation Management Investment Project

Project Administration Manual

Contents ABBREVIATIONS

I. PROJECT DESCRIPTION 1

II. IMPLEMENTATION PLANS 3 A. Project Readiness Activities 3 B. Overall Project Implementation Plan 4

III. PROJECT MANAGEMENT ARRANGEMENTS 6 A. Project Implementation Organizations – Roles and Responsibilities 6 B. Key Persons Involved in Implementation 7 C. Project Organization Structure 7

IV. COSTS AND FINANCING 9 A. Disbursement S-Curve 16 B. Contract Awards S-curve 16 C. Fund Flow Diagram 17

V. FINANCIAL MANAGEMENT 18 A. Financial Management Assessment 18 B. Disbursement 18 C. Accounting 19 D. Auditing 19

VI. PROCUREMENT AND CONSULTING SERVICES 19 A. Advance Contracting 19 B. Procurement of Goods, Works and Consulting Services 20 C. Procurement Plan 21 D. Consultant's Terms of Reference 21

VII. SAFEGUARDS 21 A. Involuntary Resettlement 21 B. Environment 23 C. Indigenous People 25 D. Safeguards Compliance Monitoring 25

VIII. GENDER AND SOCIAL IMPACTS 25 A. Gender Action Plan (Summary) 25

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 28

A. Monitoring 28 B. Evaluation 31 C. Reporting 31 D. Stakeholder Communication Strategy 31

X. ANTICORRUPTION POLICY 42

XI. ASSURANCES 42

XII. ACCOUNTABILITY MECHANISMS 43

XIII. RECORD OF PAM CHANGES 44

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ANNEXES A LIST OF RRP LINKED DOCUMENTS B PROCUREMENT PLAN C ADB PROJECT IMPLEMENTATION SUPPORT CONSULTANT (PISC) DRAFT TERMS

OF REFERENCE D DESIGN AND MONITORING FRAMEWORK

Project Administration Manual Purpose and Process

The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.

The executing and implementing agencies are wholly responsible for the implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB’s policies and procedures. ADB staff is responsible to support implementation including compliance by executing and implementing agencies of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures.

At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the Loan agreements. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan Agreements, the provisions of the Loan Agreements shall prevail.

After ADB Board approval of the project's report and recommendations of the President (RRP) changes

in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.

Abbreviations

ADB = Asian Development Bank ADF = Asian Development Fund AMDAL = Government environmental impact assessment – (Analisa Mengenai

Dampak Lingkungan) BLH = Government environmental agency - (Badan Lingkungan Hidup) CEMP = Contractor’s Environmental Management Plan CDTA = capacity development technical assistance DED = detailed engineering design DD = due diligence DESD = Directorate of Environmental and Sanitation Development DGHS = Ministry of Public Works, Directorate General for Human Settlements DMF = design and monitoring framework EA = executing agency EIA = environmental impact assessment EMP = environmental management plan FOPIP = Financial and Operating Performance Improvement Plan GoI = Government of Indonesia HH = household ICB = international competitive bidding IEE = initial environmental examination INDII = Indonesia Infrastructure Initiative LARP = land acquisition and resettlement plan LIBOR = London interbank offered rate LPMU = local project management unit MLD = mega-liters per day MOF = Ministry of Finance NCB = national competitive bidding NGOs = nongovernment organizations PAM = project administration manual PISC = project implementation support consultant PPMU = provincial project management unit PSC = project support consultants QBS = quality based selection QCBS = quality- and cost based selection RRP = report and recommendation of the President to the Board SPS = Safeguard Policy Statement SPRSS = summary poverty reduction and social strategy WA = withdrawal application WWTP = wastewater treatment plant

I. PROJECT DESCRIPTION

1. Rationale. Indonesia has one of the lowest coverage rates of conventional off-site urban sewerage in Asia. Only 11 out of its 330 cities have partial sewerage systems, and only 2% of the national urban population is connected to central WWTPs; the remaining urban population depends on poorly constructed and maintained septic tanks and unlined pit latrines, which result in leachates penetrating the aquifers. Some 80% of gray water drains directly to surface waters.1 The present sanitation services are inadequate and unintegrated, due to inadequate and poorly enforced regulations. This results in limited desludging of septic tanks, inadequate septage treatment facilities,2 and fragmented operational responsibility. Improved access to safe water and basic sanitation is part of the Government of Indonesia’s effort to achieve its 2015 Millennium Development Goal (MDG) targets.3 While the government’s MDG reports suggest that good progress has been achieved with respect to sanitation, in practice the available facilities are substandard, and rely on unsustainable septage removal and treatment facilities.4 As a result, there is significant environmental pollution, widespread contamination of surface and groundwater with the associated spread of water-related diseases,5 and high infant mortality.6 The inadequate sanitation systems and their resulting environmental and health impacts produce economic opportunity losses of about $5.6 billion annually, equivalent to 2.3% of the country’s gross domestic product.7 These issues can be solved by the introduction of (i) public sewerage and wastewater treatment facilities; (ii) an institutional framework for their effective operation and maintenance (O&M); and (iii) public awareness of good sanitation practices.

2. Impact and Outcome. The impact of the project will be reduced pollutant discharges to the environment in the, in the cities of Cimahi, Jambi, Makassar, Palembang, and Pekanbaru. The outcome will be increased connection of the population to improved wastewater services in these cities. 3. The Project will have two outputs:

4. Output 1: Infrastructure development for off-site wastewater systems completed. Output 1 will construct 66 kilometers (km) of trunk and main sewers, 83,200 sewer connections,8 and five WWTPs with a total installed capacity of 83,000 cubic meters per day (m3/d), and with provision for future expansion.9 At least 10% of the connections (and

1 “Gray water” is wastewater originating from domestic activities such as laundry, dishwashing, and bathing. 2 Septage refers to the liquid sludge removed from septic tanks that needs to be treated and disposed safely. 3 Specifically, 75.3% of the urban population has sustainable access to an improved water supply by 2015, and

76.8% of urban households have sustainable access to basic sanitation by 2015. 4 Ministry of National Development Planning/National Development Planning Agency (BAPPENAS). 2012. Report on

The Achievement of the 2010 Millennium Development Goals In Indonesia 2011. Jakarta; and Ministry of National Development Planning/National Development Planning Agency (BAPPENAS). 2010. Report on The Achievement of the Millennium Development Goals Indonesia 2010. Jakarta.

5 Such as: diarrhea, skin ailments, intestinal worms (related to sanitation and hygiene) or malaria, and dengue (vector and insect-borne diseases).

6 Indonesia’s infant mortality rate from diarrhea alone is 40 in 1,000, compared to a typical rate of 1 in 1,000 for Southeast Asian countries. Budi Hidayat, 2011. Lessons in Urban Sanitation Development Acceleration Program (PPSP) 2006-2010 Jakarta.

7 World Bank.- Water and Sanitation Program. 2008. Economic Impacts of Sanitation in Indonesia. Jakarta. Based on http://www.wsp.org/sites/wsp.org/files/publications/esi_indonesia.pdf.

8 70,400 domestic and 12,800 commercial connections. 9 The A-loan and B-loan will finance about 52.2 km of trunk and main sewers, around 61,900 connections, and four

WWTPs with a total installed capacity of 59,900 m3/d and provision for future expansion. The Government of

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associated service charges)—for poor households, households headed by women, and other vulnerable groups—will be subsidized, and 64 community-based sanitation systems will be installed in non-sewered areas serving low-income families. These systems will be directly funded by local government budgets.

5. Output 2: Project implementation support institutionalized. The capacity of the executing and implementing agencies will be strengthened through provision of management support and training in (i) procurement and construction supervision; and (ii) design and commissioning of sewerage systems. TA for institutional development and management and capacity building support for sustainability will be implemented separately.10 This will include development by the government of public sanitation awareness campaigns that seek to build appreciation and understanding of the benefits of sewerage systems and the need for adequate charges to ensure that they remain fully operational and correctly maintained. 6. The MSMIP subprojects are to provide public sewerage systems and wastewater treatment to serve the Central Business Districts (CBD) in the Cities of Cimahi, Jambi, Makassar, Palembang and Pekanbaru. In each city, the housing areas adjacent to the CBD and along the routes of the trunk sewers to the WWTPs will be connected to the sewerage system. The impact of the subprojects will be improved environmental protection by the reduction of polluting discharges. The outcome of the subprojects will be increased access of the domestic population and commercial operations to improved wastewater services such that the following numbers will be connected to sewerage and wastewater treatment.

Table 1: Sewerage House Connections by City

Domestic Connections Commercial Connections

1 Cimahi 8,900 1,000 2 Jambi 17,700 2,600 3 Makassar 9,000 5,400 4 Palembang 19,000 2,300 5 Pekanbaru 15,800 1,500 Source: Asian Development Bank.

7. Table 2 provides a summary of the subprojects that are proposed in the five cities.

Table 2: Sewers and Wastewater Treatment by City

Australia will finance 13.9 km of trunk and main sewers, 21,300 connections, and a WWTP of 23,100 m3/d and provision for future expansion in Palembang.

10 The TA was processed as a subproject under a TA cluster: ADB. 2013. Technical Assistance to the Republic of Indonesia for Sustainable Infrastructure Assistance Program. Manila (financed by the Government of Australia). The TA will be administered in parallel to the proposed loans.

City Areas covered Length

of sewers

(km)

Capacity of WWTP

(ADWF MLD)

Nominal Area required for

the WWTP (ha)

Cimahi Central Business District, adjacent housing areas and housing areas on the routes of the main sewers to the WWTPs

7.6 11.1 2.0 Jambi 14.6 15.0 6.0 Makassar 16.4 19.1 6.0 Palembang 13.9 23.1 5.7 Pekanbaru 13.6 14.7 8.0 ADWF = average daily wastewater flow, ha = hectare, km = kilometers, MLD = megaliters per day, WWTP = wastewater treatment plant

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8. The cities have an average of five people per household and, by extrapolation, about 352,000 people plus 12,800 businesses will, thus, be connected to the proposed WWTPs. In addition, the WWTPs will be designed to digest the sludge (septage) from about 230,000 septic tanks annually, serving a population of about 1.17 million. These facilities will relieve the local environment of up to 8.7 tonnes of 5-day biological oxygen demand (BOD5) per annum currently discharged to it. The existing Septage Treatment Plant (IPLT) in Palembang and Makassar will be rehabilitated using Government of Indonesia funds, (APBN), by 2014. 9. It is also planned to incorporate septage tanker discharge points along the trunk sewers in the cities. This will reduce tanker haul distances and hence operating costs. This cost reduction will be passed onto customers thereby providing encouragement for more regular emptying of septic tanks to avoid ground water pollution.

II. IMPLEMENTATION PLANS

A. Project Readiness Activities

1. Land Resettlement

10. Representatives of all five cities confirmed they finalized the purchase of all required land by the end of the second quarter (Q2) of 2013. 11. The availability of land for the construction of the WWTP is confirmed and that there is unlikely to be any occurrence that would prevent construction starting on the sites by Q4 2014. 12. All sewers, pumping stations, storm overflows and appurtenances of each sewerage system will be restricted to land owned and operated by the municipal government. Therefore, there is neither requirement for land purchase nor issues of resettlement. 13. Land availability for the WWTPs is summarized in Table 3.

Table 3. Summary of Land Requirements for WWTPs

Cimahi During 2011/12, the government of Cimahi has purchased 1 ha of land and a 0.6 ha pond for construction of the WWTP. During 2013 they have bought another 0.25 ha of land. Giving a total area of 1.85 ha. Design of the WWTP will be adjusted to suit this available land.

Jambi A land ownership and boundary survey was recently completed. The survey has identified that the land proposed for the WWTP is only 4.3 ha. whereas 6 ha is required. Negotiations for the purchase of the additional 1.7 ha. of land was being progressed at the same time as the negotiations for the purchase of the original 4.3 ha. and were expected to be concluded by March 2013. However, agreement on land value could not be reached and hence the Regional Development Planning Agency (BAPPEDA) moved the location of the proposed WWTP to land in the same area identified in the wastewater management plan for future phases of the WWTP. This alternative plot has a single landowner who was amenable to the sale of his land. This 6.1241 ha of land has now been purchased at a cost of Rp. 5.765 billion. The change of land did not have any impact on environmental safeguards as the land features are the same for both sites.

Makassar 5.1443 ha of land was acquired in 2009, costing Rp19 billion. Land certification process will be carried out using APBD 2012 budget. A transfer of an additional 1 ha of land from Greater Makassar Town District Council was proposed to complete

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the 6 ha required for the construction of the WWTP. However the City has decided to retain its land to facilitate access along the Jongaya canal embankment and accordingly only 5.1443 ha remains available for the WWTP. Design of the WWTP will be adjusted to suit this available land.

Palembang 5.7 ha of land was purchased from the 3 landowners. The sale of the land completed in April 2013.

Pekanbaru 11.31 ha of land was purchased by the local government and acquisition proceedings for another 2.14 ha. The acquisition was completed in November 2013 after APBN budget revision.

2. Activities for the ADB Loan and Indonesia Infrastructure Initiative (IndII)

Grant

14. The activities and their timing in preparing the Project through to loan effectiveness and the commencement of construction are shown in Figure 1.

Figure 1: Activity Chart

Indicative Activities 2014

1 2 3 4 5 6 7 8 9 10 11 12

Establish project implementation arrangements (CPMU/PIUs)

MPW

Provide budget allocation for government counterpart

MPW, MOF

Request advance contracting for project start-up activities for:

a. Preparation of detailed engineering design

MPW, INDII

b. Recruitment of capacity development technical assistance consultants

ADB, MPW

Seek ADB Board approval ADB Loan signing MPW, MOF, ADB Government legal opinion MPW, MOF Loan effectiveness ADB ADB = Asian Development Bank, CPMU = central project management unit, INDII = Indonesia Infrastructure Initiative, MOF = Ministry of Finance; MPW = Ministry of Public Works, PIU = project implementation unit.

B. Overall Project Implementation Plan

15. The activities and timescale in implementing the Project are shown in Figure 2.

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Figure 2: Implementation Schedule

2013 2014 2015 2016 2017 2018 2019 2020

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Loan negotiation Loan signing Loan effectivity Subproject Investments (for five cities) Main Works Detailed engineering design (grant)

Land acquisition and involuntary resettlement

Compensation-wastewater collection system

Prequalification and bidding

Awarding of contracts

Construction of civil works

Wastewater Treatment Plants

Trunk Sewers

Main Sewers

Storm Water Drainage

Laterals and Inceptors

House Connections

Detailed engineering design

Prequalification and bidding

Awarding of contracts

Construction of civil works

Project Implementation Support

Prequalification, selection of consultants

Awarding of Contract

Implementation support and benefit monitoring

Capacity development and technical assistance

Prequalification, selection of consultants

Awarding of Contract

Conduct of workshops and seminars

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III. PROJECT MANAGEMENT ARRANGEMENTS

A. Project Implementation Organizations – Roles and Responsibilities

16. The roles and responsibilities of organizations for the implementation of the Project are summarized in Table 4.

Table 4: Project Implementation Roles and Responsibilities Project Implementation

Organizations Management Roles and Responsibilities

• National Coordination Agency Central Steering Committee Chair - National Planning Development Agency (Badan

Perencanaan Pembangunan Nasional or BAPPENAS) Members – Ministry of Public Works, Ministry of Finance,

Ministry of Home Affairs, and Ministry of Health. Monitors compliance with the provisions of the External

Loan Agreement.

• Ministry of Public Works, Directorate General for Human Settlements (DGHS)

• (Cipta Karya)

Executing Agency (EA) To coordinate various project activities and act as focal

unit for coordination with ADB, as well as external government offices whose endorsement or approval and monitoring activities are mandated by existing policies or laws.

• Directorate of Environmental and

Sanitation Development (DESD or PPLP)

Central Project Management Unit (CPMU) Responsible for overall project implementation, including

project supervision, monitoring, accounting, and consolidated reporting

Submission of withdrawal applications to ADB, including retention of any supporting documents

Selection, contracting, and supervision of implementation consultants.

Central Project Implementation Unit (CPIU)

Coordinates with various central government agencies / offices.

• Provincial Government office or

dinas Provincial Project Management Unit (PPMU) Coordinates with various offices (dinas) in the provincial

level.

• Provincial Units of DGHS Satuan Kerja (SATKER) in:

- West Java Province (For Cimahi)

- Jambi Province (For Jambi) - South Sulawesi Province (For

Makassar) - Riau Province (for

Pekanbaru)

Provincial Project Implementation Unit (PPIU) Takes full responsibility for the planning and

implementation of all aspects and components in the Project in the Cities

Closely monitors construction progress Provides contract supervision

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• City Government office Local Project Management Unit (LPMU) Sets project policies in accordance with the sub-loan

agreement and grant financing agreement in coordination with the POKJA (Kelompok Kerja [working group]) and UPTD (Unit Pelaksana Teknis Dinas or LG technical unit)

Monitors implementation of the project for the Cities Coordinates the needed local inputs and resources Reviews regularly Progress Reports on the Project

• Satuan Kerja Perangkat Daerah

(SKPD) Coordinates with city government offices in the

implementation of the project.

B. Key Persons Involved in Implementation

17. The key persons involved with the implementation of the Project are as follows:

Executing Agency Directorate General of Human Settlements in the Ministry of Public Works

Officer's Name Dwityo A. Soeranto Position Head of Sub-directorate Telephone 62-21 72796588 Email address d_akoro@yahoo.com

Office Address Jl. Pattimura 20, Kebayoran Baru Jakarta Selatan 12110 Indonesia

CPMU Directorate of Development Sanitation Environment Housing in the Ministry of Public Works

Officer's Name Emah Sudjimah Position Head of Subdirectorate Telephone 62-21 72797175 Email address legowohb@yahoo.com Office Address Jl. Pattimura 20, Kebayoran Baru Jakarta

Selatan 12110 Indonesia

ADB Urban Development and Water Division, Southeast Asia Department Mission Leader

Officer's Name Javier Coloma Brotons Position: Urban Development Specialist (Water Supply and Sanitation) Telephone : 63 2 683 1554 Email address: jcolomabrotons@adb.org

C. Project Organization Structure

18. The Ministry of Public Works, Directorate General for Human Settlements (DGHS) is the executing agency for the MSMIP. DGHS will establish a central project management unit (CPMU) composed of technical and administrative staff from Directorate of Environmental and Sanitation Development (DESD). The CPMU will likely be headed by a Senior Officer of the DESD. The city government (PEMKOT) is the implementing agency (IA) in Pelambang. For Cimahi, Jambi, Makassar and Pekanbaru, several units will work jointly to manage and implement the subproject. At the provincial level, (i) the PPIU or the SATKER11 comprises full time staff detailed from DGHS to the provinces to implement specific projects of DGHS, and (ii)

11 Locally known as Satuan Kerja.

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the Provincial Project Management Unit (PPMU) will provide coordination with the other offices (dinas) in the provincial level. At the city level, the LPMU will work with the Satuan Kerja Perangkat Daerah (SKPD) to provide coordination and support for project implementation. The PPIU will comprise full time staff transferred from the DGHS. The PPIU will take full responsibility for the project implementation at the city level including progress monitoring and contracts management. The shadow LPMU will support the PPIU in the implementation and monitoring of the project activities, including setting of special policies that will satisfy the conditions of the loan agreement. For Palembang, the LPMU will solely be responsible for management and implementation of the subproject. 19. The CPMU shall appoint an Environment Officer for the Project, to oversee the implementation and monitoring of environmental safeguards requirements under ADB's Safeguards Policy Statement (SPS) 2009. Details of the activities related to environmental safeguards where CPMU shall be responsible are presented in Section VII (Safeguards). Environmental Officers will also be designated in the PPIUs and LPMUs to effectively manage the environmental aspects at the subprojects level.

20. The organization structure of the Project is shown in Figure 3.

Figure 3: Project Organization Structure

DGHS(Executing Agency)

Central Steering Commitee

Central Project Management Unit

(CPMU)

Central Project Implementation Unit (CPIU)

/ Satker Pusat

Central Support team(CST) a

Provincial Project Management Unit

(PPMU)

Provincial Project Implementation Unit

(PPIU) / Satker Provinsi

Provincial Support team(PST) a

Local Support team(LST) a

Local Project Management Unit

(LPMU)

Local Project Implementation Unit

(LPIU) / SKPD

Dinas Provinsi b

Implementing Agency

Provincial Steering Committee (CWSG, various

Dinas Provinsi )

Dinas Kota c

(Implementing Agency ABPD-Kota)

City Sanitation Working Group

(CSWG)

(chair: DGHS)

(chair: BAPPEDA-Prov.)

(chair: deputy mayor)

National Level

Provincial Level

City Level

Consultant Support

a Support teams consist of consultants for: (i) project implementation support, and (ii) institutional development and capacity buildingb Provincial Governmentc City Government

Supervision, guidancereporting

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21. The subprojects in the five cities will be implemented with the assistance of the project implementation consultants comprising the following, as summarized in Table 5:

• Project implementation and construction supervision support consultants (PISCs)

will be funded by ADB loan and recruited by the CPMU (for Cimahi, Makassar, Jambi and Pekanbaru)

• Project Support Consultants (PSC) funded by INDII (for Palembang only) • Capacity development technical assistance (CDTA) consultants recruited and

funded by ADB grant (for Cimahi, Jambi, Makassar, Palembang and Pekanbaru). • Construction supervision Consultants (CSC) funded by INDII (for Palembang

only) • Detailed engineering design (DED) consultants hired and funded by INDII (for

Cimahi, Makassar and Palembang) • DED Consultants hired and funded by the Government of Indonesia (GoI) (for

Jambi and Pekanbaru) • DED Consultants for sewer connections to domestic and commercial properties

are to be funded and hired by the city government except Palembang which will be funded and procured by INDII

Table 5: Funding of Consultants

City Cimahi Makassar Jambi Pekanbaru Palembang

Consultant PISC or PSC ADB (loan) ADB (loan) ADB (loan) ADB (loan) INDII

CSC - - - - INDII DED INDII INDII GoI GoI INDII

22. The ADB PISCs will provide overall project management support including procurement and construction supervision in the respective cities. The INDII PSC and CSC will provide similar services for Palembang. It is the responsibility of these consultants to ensure that activities are coordinated and synchronized such that project objectives are met. Detailed engineering designs will be undertaken by another firm of consultants as detailed. 23. The ADB PISCs will provide overall project management support including procurement and construction supervision in the respective cities. The INDII PSC and CSC will provide similar services for Palembang. It is the responsibility of these consultants to ensure that activities are coordinated and synchronized such that project objectives are met. Detailed engineering designs will be undertaken by another firm of consultants as detailed.

IV. COSTS AND FINANCING

24. The project is estimated to cost $248.02 million equivalent (Table 6).

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Table 6: Project Investment Plan ($ million) Item Amounta A. Base Costb

1. Output 1: Infrastructure development for sewerage and wastewater systems 179.63 2. Output 2: Institutionalized project implementation support 14.95 Subtotal (A) 194.58 B. Contingenciesc 44.68 C. Financing Charges During Implementationd 8.76 Total (A+B+C) 248.02 a Includes taxes and duties of $23.13 million equivalent to be financed from government resources. The financing will

be provided as a tax exemption. b October 2012 prices. c Physical contingencies computed at 11% for civil works. Price contingencies computed at 1.9% for 2013, 2.2% for

2014, 1.9% for 2015, and 1.8% for 2016–2018 on foreign exchange costs; and 5.1% for 2013, 4.8% for 2014, and 4.1% for 2015–2018 on local currency costs; includes provision for potential exchange rate fluctuation under an assumption of a purchasing power parity exchange rate

d Includes interest and commitment charges. For the Asian Development Bank loan, interest during construction has been computed at the 5-year forward London interbank offered rate plus a spread of 0.5% plus nil maturity premium (not capitalized); commitment charges are 0.15% per year to be charged on the undisbursed loan amount. For the Association of Southeast Asian Nations Infrastructure Fund loan, interest during construction has been computed at the 5-year forward London interbank offered rate plus a spread of 1.4%; commitment charges are 0.15% per year to be charged on the undisbursed loan amount.

Source: Asian Development Bank.

25. The government has requested a loan of $80.0 million from ADB's ordinary capital resources (A-Loan) and $40million funded through the participation of AIF (B-Loan) to finance the Project. The A-loan will have a 17-year term, including a grace period of seven years, an annual interest rate determined in accordance with ADB's London interbank offered rate (LIBOR)-based lending facility, a commitment charge of 0.15% per year, and such other terms and conditions set forth in the draft loan agreement. Based on this repayment schedule, the average loan maturity is 12.66 years; hence, no maturity premium is payable to ADB. The B-loan will have the same term, grace period and repayment schedule as the A-loan, and a lending rate and other terms and conditions as set forth in the draft loan agreement. The The A-Loan proceeds will finance civil works and equipment for the sewerage systems of Cimahi, Jambi, Makassar Pekanbaru and Jambi WWTP, consulting services, and contingencies. The B-Loan will fund the civil works and equipment of Cimahi, Makassar, Pekanbaru WWTPs and contingencies.12 Advanced action will be carried out for the project implementation support consultant. 26. The Government of Australia will provide collaborative cofinancing of $48.83 million grant through the Indonesian Infrastructure Initiative (IndII) to finance the detailed engineering designs (DED) in Cimahi and Makassar and, in Palembang, the DED, the capital costs and the construction supervision. The Central Government of Indonesia will provide $35.04 million equivalent to finance DED in Jambi and Pekanbaru, increased awareness campaigns, and all taxes and duties, to be provided through exemptions. The local governments will provide $44.15 million equivalent to finance land acquisition, involuntary resettlement and house connections. In addition, the LGs will finance the 64 community-based sanitations systems from their budgets. The city governments have already completed the required land acquisitions. The financing plan is in Table 7 and detailed cost estimates by expenditure category are provided in Table 8. 27. The allocation and withdrawal of loan and grant proceeds is detailed in Table 9.

12 Transportation and insurance costs may be financed under the A-loan or the B-loan.

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Table 7: Detailed Cost Estimates by Financier Source Amount ($ million) Share of Total (%) Asian Development Bank

Ordinary capital resources (loan) 80.00 32.3 ASEAN Infrastructure Fund (loan)a 40.00 16.1 Government of Australia (grant)b 48.83 19.7 Central government 35.04 14.1 Local government 44.15 17.8

Total 248.02 100.0 ASEAN = Association of Southeast Asian Nations. a Administered by the Asian Development Bank. b Through the Indonesia Infrastructure Initiative. Source: Asian Development Bank.

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Table 8: Detailed Cost Estimates by Expenditure Category

% % Total(Rp Million) (US$ Million) Foreign Base

Local Foreign Total Local Foreign Total Exchange Costs

I. Investment Costs A. Involuntary Resettlement 17,895 - 17,895 1.46 - 1.46 - 1B. Civil Works 1,091,716 886,757 1,978,474 89.19 72.45 161.64 45 83C. Equipment 360 3,242 3,602 0.03 0.26 0.29 90 -D. Materials 8,033 - 8,033 0.66 - 0.66 - -E. Consulting Services 172,515 89,110 261,625 14.09 7.28 21.37 34 11F. Project Implementation Support 21,485 11,068 32,554 1.76 0.90 2.66 34 1G. Land Acquisition 79,474 - 79,474 6.49 - 6.49 - 3

Total Baseline Costs (A to G) 1,391,478 990,177 2,381,656 113.68 80.90 194.58 42 100Physical Contingencies 144,531 108,091 252,622 11.81 8.83 20.64 43 11Price Contingencies 224,530 69,749 294,279 18.34 5.70 24.04 24 12

Total (including contingencies) 1,760,539 1,168,017 2,928,556 143.83 95.43 239.26 40 123Interest During Implementation 103,306 - 103,306 8.44 - 8.44 - 3Commitment Charges 3,917 - 3,917 0.32 - 0.32 - -

Total PROJECT COSTS 1,867,761 1,168,017 3,035,779 152.59 95.43 248.02 39 126

* No withdrawals shall be made from the loan account until the Government will have established the Project Steering Committee and the CPMU, including the appointment of the Project manager

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Table 9: Allocation and Withdrawal of Loan Proceeds

ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS (ADB AIF) (Metropolitan Sanitation Management Investment Project)

No. Item Total Amount Allocated for ADB Financing

ASEAN Infrastructure Fund

Basis for Withdrawal from the Loan Account

Category Subcategory

1 Works 34,469,000

1A Cimahi Wastewater Treatment Plant ** 11,406,000 100% of total expenditure claimed*

1B Makassar Wastewater Treatment Plant** 10,938,000 100% of total expenditure claimed*

1C Pekanbaru Wastewater Treatment Plant ** 12,125,000 100% of total expenditure claimed*

2 Unallocated 5,531,000

Total 40,000,000 * Exclusive of taxes and duties imposed within the territory of the Borrower.

** No withdrawals shall be made from the loan account until the Government has established the CPMU

ALLOCATION AND WITHDRAWAL OF LOAN PROCEEDS (ADB OCR) (Metropolitan Sanitation Management Investment Project)

No. Item Total Amount Allocated for ADB Financing

Ordinary Capital Resources

Basis for Withdrawal from the Loan Account

Category Subcategory 1 Works 61,480,000

1A Jambi Wastewater Treatment Plant** 9,714,000 100% of total expenditure claimed*

1B Cimahi Sewer System** 4,791,000 100% of total expenditure claimed*

1C Jambi Sewer System** 10,625,000 100% of total expenditure claimed*

1D Makassar Sewer System** 24,337,000 100% of total expenditure claimed**

1E Pekanbaru Sewer System** 12,013,000 100% of total expenditure claimed*

2 Consulting Services (Project Implementation Support) **

12,624,000 100% of total expenditure claimed*

3 Unallocated 5,896,000

Total 80,000,000 *Exclusive of taxes and duties imposed within the territory of the Borrower. ** No withdrawals shall be made from the loan account until government has established the CPMU

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Table 10: Detailed Cost Estimates by Financier

C. Detailed Cost Estimates by FinancierADB - OCR Loan ADB - AIF Loan Government of Central Government Local Government Total

Australia Grant a Base Taxes & TotalCost Duties b

Amount % Amount % Amount % Amount Amount Amount % Amount % Amount %A Works a, c

Cimahi Wastewater Treatment Plant - - 11.41 90.0 - - - 1.27 1.27 10.0 - - 12.67 5.1 Cimahi Wastewater Sewer System 4.79 88.1 - - - - - 0.54 0.54 10.0 0.10 1.9 5.44 2.2 Cimahi Property Connections - - - - - - - 0.25 0.25 10.0 2.29 90.0 2.55 1.0 Jambi Wastewater Treatment Plant 9.71 90.0 - - - - - 1.08 1.08 10.0 - - 10.79 4.4 Jambi Wastewater Sewer System 10.63 84.0 - - - - - 1.26 1.26 10.0 0.76 6.0 12.65 5.1 Jambi Property Connections - - - - - - - 0.98 0.98 10.0 8.86 90.0 9.85 4.0 Makassar Wastewater Treatment Plant - - 10.94 90.0 - - - 1.22 1.22 10.0 - - 12.15 4.9 Makassar Wastewater Sewer System 24.34 85.8 - - - - - 2.84 2.84 10.0 1.19 4.2 28.36 11.4 Makassar Property Connections - - - - - - - 0.95 0.95 10.0 8.54 90.0 9.49 3.8 Palembang Wastewater Treatment Plant - - - - 10.78 90.0 - 1.20 1.20 10.0 - - 11.98 4.8 Palembang Wastewater Sewer System - - - - 16.68 90.0 - 1.85 1.85 10.0 - - 18.53 7.5 Palembang Property Connections - - - - 8.99 90.0 - 1.00 1.00 10.0 - - 9.98 4.0 Pekanbaru Wastewater Treatment Plant - - 12.12 90.0 - - - 1.35 1.35 10.0 - - 13.47 5.4 Pekanbaru Wastewater Sewer System 12.01 84.0 - - - - - 1.43 1.43 10.0 0.86 6.0 14.30 5.8 Pekanbaru Property Connections - - - - - - - 0.84 0.84 10.0 7.58 90.0 8.42 3.4 Subtotal (A) c 61.48 34.0 34.47 19.1 36.45 20.2 - 18.06 18.06 10.0 30.18 16.7 180.64 72.8

B Consulting Services b, dCimahi Wastewater Treatment Plant - - - - 0.54 90.0 - 0.06 0.06 10.0 - - 0.60 0.2 Cimahi Wastewater Sewer System - - - - 0.22 90.0 0.00 0.02 0.02 10.0 - - 0.25 0.1 Cimahi Property Connections - - - - - - - 0.02 0.02 10.0 0.19 90.0 0.21 0.1 Jambi Wastewater Treatment Plant - - - - - - 0.46 0.05 0.51 100.0 - - 0.51 0.2 Jambi Wastewater Sewer System - - - - - - 0.51 0.06 0.57 100.0 - - 0.57 0.2 Jambi Property Connections - - - - - - - 0.08 0.08 10.0 0.74 90.0 0.82 0.3 Makassar Wastewater Treatment Plant - - - - 0.51 90.0 0.00 0.06 0.06 10.0 - - 0.57 0.2 Makassar Wastewater Sewer System - - - - 1.16 90.0 - 0.13 0.13 10.0 - - 1.29 0.5 Makassar Property Connections - - - - - - - 0.08 0.08 10.0 0.70 90.0 0.78 0.3 Palembang Wastewater Treatment Plant - - - - 0.83 90.0 - 0.09 0.09 10.0 - - 0.93 0.4 Palembang Wastewater Sewer System - - - - 1.25 90.0 - 0.14 0.14 10.0 - - 1.39 0.6 Palembang Property Connections - - - - 0.74 90.0 - 0.08 0.08 10.0 - - 0.82 0.3 Pekanbaru Wastewater Treatment Plant - - - - - - 0.57 0.06 0.63 100.0 - - 0.63 0.3 Pekanbaru Wastewater Sewer System - - - - - - 0.59 0.07 0.65 100.0 - - 0.65 0.3 Pekanbaru Property Connections - - - - - - - 0.08 0.08 10.0 0.69 90.0 0.77 0.3 Project Implementation Support - ADB 12.62 85.3 - - - - 0.70 1.48 2.18 14.7 - - 14.80 6.0 Project Implementation Support - INDII - - - - 1.84 90.0 - 0.20 0.20 10.0 - - 2.04 0.8 Subtotal (B) 12.62 45.7 - - 7.10 25.7 2.83 2.76 5.59 20.2 2.33 8.4 27.64 11.1

C. Land Acquisition and Resettlement - - - - - - - - 7.96 100.0 7.96 3.2 D. Unallocated 5.90 25.6 5.53 24.0 5.29 23.0 0.32 2.30 2.62 11.4 3.69 16.0 23.03 9.3

Subtotal (A to D) 80.00 33.4 40.00 16.7 48.83 20.4 3.15 23.13 26.28 11.0 44.15 18.5 239.26 96.5 Interest During Implementation - - - - - - 8.44 - 8.44 100.0 - - 8.44 3.4 Commitment Charges - - - - - - 0.32 - 0.32 100.0 - - 0.32 0.1

Total PROJECT COST 80.00 32.3 40.00 16.1 48.83 19.7 11.91 23.13 35.04 14.1 44.15 17.8 248.02 100.0 a Through Indonesian Infrastructure Initiative.b Central Government will provide taxes and duties as exemption.c Local Government will provide parallel financing for the House Connections (reflected in local government column for works).d Central government will provide in kind support equivalent to 0.7 for the PISC (reflected in central base cost for consulting services).

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Table 11: Detailed Cost Estimates by Outputs/Components ($ million)

Cimahi Jambi Makassar Palembang Pekanbaru

Waste Waste Involuntary Waste Waste Involuntary Waste Waste Involuntary Waste Waste Involuntary Waste Waste Involuntary Project ProjectWater Water Resettlement Water Water Resettlement Water Water Resettlement Water Water Resettlement Water Water Resettlement Implementation Implementation

Treatment Sewer Property & Land Treatment Sewer Property & Land Treatment Sewer Property & Land Treatment Sewer Property & Land Treatment Sewer Property & Land Support - Support -Works System Connections Acquisition Works System Connections Acquisition Works System Connections Acquisition Works System Connections Acquisition Works System Connections Acquisition ADB INDII Total

I. Investment Costs A. Involuntary Resettlement - - - 0.04 - - - 0.12 - - - 0.38 - - - 0.54 - - - 0.39 - - 1.46B. Civil Works 11.73 4.81 2.20 - 9.99 11.15 8.51 - 11.25 25.14 8.20 - 11.09 16.47 8.63 - 12.47 12.72 7.28 - - - 161.64C. Equipment - - - - - - - - - - - - - - - - - - - - 0.29 - 0.29D. Materials - - - - - - - - - - - - - - - - - - - - 0.66 - 0.66E. Consulting Services 0.59 0.24 0.18 - 0.50 0.56 0.69 - 0.56 1.26 0.66 - 0.88 1.31 0.69 - 0.62 0.64 0.65 - 9.51 1.83 21.37F. Project Implementation Support - - - - - - - - - - - - - - - - - - - - 2.66 - 2.66G. Land Acquisition - - - 0.07 - - - 0.58 - - - 1.91 - - - 2.33 - - - 1.62 - - 6.49

Total Base Costs (A to G) 12.32 5.05 2.38 0.11 10.49 11.71 9.20 0.69 11.81 26.40 8.86 2.29 11.97 17.78 9.32 2.86 13.09 13.36 7.93 2.00 13.12 1.83 194.58Physical Contingencies 1.33 0.55 0.26 0.00 1.13 1.26 0.99 0.01 1.28 2.85 0.96 0.04 1.29 2.29 1.20 0.06 1.41 1.44 0.86 0.04 1.17 0.21 20.64Price Contingencies 1.06 0.70 0.42 - 0.90 1.67 1.62 - 1.01 3.60 1.56 - 1.04 2.42 1.67 - 1.13 1.77 1.40 - 1.83 0.24 24.04

Total PROJECT COSTS 14.71 6.30 3.06 0.11 12.52 14.65 11.82 0.70 14.10 32.85 11.38 2.33 14.30 22.49 12.19 2.92 15.63 16.57 10.19 2.04 16.12 2.28 239.26

Table 12: Detailed Cost Estimates by Year ($ million)

2013 2014 2015 2016 2017 2018 2019 2020 Total

I. Investment Costs A. Involuntary Resettlement - 0.12 0.24 0.24 0.24 0.24 0.24 0.12 1.46B. Civil Works - - 12.86 61.64 50.77 20.85 7.76 7.76 161.64C. Equipment - - - 0.29 - - - - 0.29D. Materials - - 0.13 0.13 0.13 0.13 0.13 - 0.66E. Consulting Services 1.57 4.71 1.85 3.58 3.94 3.73 1.00 1.00 21.37F. Project Implementation Support - 0.08 0.32 0.66 0.66 0.66 0.13 0.13 2.66G. Land Acquisition 6.49 - - - - - - - 6.49

Total Base Costs (A to G) 8.06 4.91 15.40 66.56 55.74 25.62 9.27 9.02 194.58Physical Contingencies 0.17 0.51 1.68 7.29 6.17 2.81 1.01 1.01 20.64Price Contingencies - 0.14 0.88 6.33 7.70 4.81 2.09 2.09 24.04

Total (including contingencies) 8.23 5.56 17.96 80.17 69.62 33.24 12.37 12.12 239.26 Financial Charges - - 0.03 0.16 0.78 1.98 2.77 3.05 8.76Total PROJECT COSTS 8.23 5.56 17.99 80.33 70.40 35.22 15.13 15.16 248.02

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A. Disbursement S-Curve

28. The annual and cumulative disbursement of funds is shown on Figure 4 while contract awards projections are shown on Figure 5.

Figure 4: Project disbursement

B. Contract Awards S-curve

Figure 5: Contract Awards Projections

2013 2014 2015 2016 2017 2018Cumulative 7.10 24.59 181.61 187.58 230.24 230.24Annual 7.10 17.49 157.02 5.97 42.66 -

0.00

50.00

100.00

150.00

200.00

250.00

$ m

illio

n

Contract Awards Projection

2013 2014 2015 2016 2017 2018 2019 2020Cumulative 8.23 13.80 31.78 112.11 182.51 217.73 232.86 248.02Annual 8.23 5.56 17.99 80.33 70.40 35.22 15.13 15.16

0

50

100

150

200

250

300

$'m

illio

n

Disbursements Projection

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C. Fund Flow Diagram

Ministry of Finance

Central Project Management Unit (CPMU)

Government of Indonesia

(Counterpart fund)

Implementing Agency

SATKER Provincial Project Implementing Unit

Asian Development Bank (Loan)

Executing Agency (EA) Ministry of Public Works

Directorate of Development, Sanitation, Environment and Housing (PPLP)

Contractors, Consultants, Suppliers, Service Providers

Local Project Management Unit

Funds Flow Document Flow

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V. FINANCIAL MANAGEMENT

A. Financial Management Assessment

29. The Ministry of Public Works, through the DGHS is the executing agency (EA) of the Project. It has performed this function for other ADB-financed projects in the water and sanitation sector since the late 1980s. One implementing agency for each city will be responsible for subproject construction.

Table 13: Implementing Agencies

City Government Implementing Agency Cimahi DGHS Provincial Unit (SATKER) in West Java Province Jambi DGHS Provincial Unit (SATKER) in Jambi Province Makassar DGHS Provincial Unit (SATKER) in South Sulawesi Province Palembang City Government of Palembang Pekanbaru DGHS Provincial Unit (SATKER) in Riau Province Source: Project Preparation Technical Assistance (PPTA) Consultant.

30. The Financial Management Assessment reveals that the DGHS has proven experience in financial management of development projects. However, at the provincial level, the five IAs have limited experience in implementing externally-financed subprojects. These provincial agencies will need to strengthen their financial management capacity to understand and implement the practices of ADB financial management requirements. To improve the financial management capacity of the IAs, financial management consultants will be engaged during the implementation of the Project. The financial management consultants will work closely with the IAs to provide support, advice and assistance in respect to all aspects of financial management for the Project. The financial management consultants will also provide training on ADB loan disbursement procedures and financial management practices to the accounting staff in the IAs. The EAs and IAs will maintain separate project records and accounts that are adequate to identify works and services financed from the ADB loan proceeds. These records and accounts will be audited annually. 31. In response to the findings of the financial audit reports, ADB will review operational aspects of financial management during the course of the Project, at least covering the following areas: (i) planning and budgetary control, (ii) financial and management accounting, and (iii) internal control and audit systems, as part of its periodic supervision missions. As the sewerage systems that will be constructed are entirely new, there is also a need to strengthen the institutions responsible for the O&M of each sewerage system.

B. Disbursement

32. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2012, as amended from time to time)13 and detailed arrangements agreed upon between the Government and ADB. Pursuant to ADB's SPS (2009), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. All financial institutions will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list to subprojects financed by ADB.

13 ADB. Loan Disbursement Handbook. http://www.adb.org/documents/loan-disbursement-handbook.

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33. Disbursements from the ADB loan for contracts for consulting services and civil works bid under international and national competitive bidding procedures will be generally through direct payment procedures as defined in ADB’s Loan Disbursement Handbook.

34. Before the submission of the first withdrawal application, the Government should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications (WA) on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is $100,000, unless otherwise approved by ADB. Individual payments below this amount should generally be paid by the Government and subsequently claimed to ADB through reimbursement. ADB reserves the right not to accept WAs below the minimum amount. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB members, and are eligible for ADB financing.

35. No withdrawals shall be made from the loan accounts until the following condition has been met: the Government will have established the CPMU. ADB’s statement of expenditure (SOE) procedure will be used to reimburse eligible expenditures. The individual payments that may be reimbursed under the SOE procedure will not exceed $100,000 equivalent per payment.7 SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit.8

36. ADB loans will be allocated to the Government, and, with respect to the on-lending premium imposed by the law and implemented by the MOF, the entire loan proceeds will be allocated on a grant basis to the MPW.

C. Accounting

37. The DGHS will maintain separate project accounts and records by funding source for all expenditures incurred on the Project. Project accounts will follow international accounting principles and practices or those prescribed by the Government's accounting laws and regulations.

D. Auditing

38. The DGHS will cause the detailed consolidated project accounts to be audited in accordance with International Standards on Auditing and/or in accordance with the Government's audit regulations by an auditor acceptable to ADB. The audited accounts will be submitted in the English language to ADB within six months of the end of the fiscal year by the EA. The annual audit report will include a separate audit opinion on the use of ADB’s statement of expenditures procedures. The Government and the DGHS have been made aware of ADB’s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited accounts. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB’s financing is used in accordance with ADB’s policies and procedures.

VI. PROCUREMENT AND CONSULTING SERVICES

A. Advance Contracting

39. All advance contracting will be undertaken in conformity with ADB’s Procurement Guidelines (2010, as amended from time to time) and ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time). The issuance of invitations to bid under

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advance contracting will be subject to ADB approval. The Borrower has been advised that approval of advance contracting does not commit ADB to finance the Project. EA will advertise all consulting opportunities in Consulting Services Recruitment Notice at www.adb.org. 40. Following ADB approval, the Borrower may wish to proceed with the selection (though not contracting) of consultants before the loan agreement becomes effective. In such cases, the selection procedures shall be in accordance with these guidelines, and ADB shall review the process used by the Borrower. 41. The Borrower agreed to take advance action in recruiting the PISC and CDTA Consultants to speed up project implementation. ADB will not finance any expenditures paid by the Government before the loan is approved by ADB’s Board of Directors. ADB’s concurrence with advance actions does not commit ADB to finance the related expenditures under the Project or to finance the Project

B. Procurement of Goods, Works and Consulting Services

42. All procurement of Goods and Works will be in accordance with ADB’s Procurement Guidelines (2010, as amended from time to time). Civil Works will be procured through international competitive bidding (ICB) procedures for packages exceeding $10.0M equivalent and goods will be procured through ICB exceeding $2.0M. National Competitive Bidding (NCB) procedures acceptable to ADB will be used to procure Civil Works and Goods up to their respective thresholds. Packages amounting to the equivalent of $100,000 or less may be procured through Shopping. Note in the event that any of the sewerage system construction packages are to be split into smaller packages, the split should be solely on a geographical area basis. The Government of Australia (through IndII) will use their own procurement rules and guidelines for the collaborative cofinanced grant. 43. A Procurement Capacity Assessment (PCA) of the four SATKERs was undertaken by the PPTA consultant. The PCA identified particular risks related to the SATKER’s procurement capacity in terms of (i) organization and staff capacity; (ii) information management; (iii) procurement practices; (iv) performance effectiveness; and (v) accountability measures 44. Overall, the conclusions of the PCA can be summarized as follows: (i) policies and guidelines for the implementation of procurement activities are in place under Presidential Regulation 54/2010 and as amended by Presidential Regulation 70/2012; (ii) all the four SATKERs have existing procurement service units who have been carrying out the procurement function for the agency; (iii) while the teams have considerable experience with locally-funded projects, they lack experience with externally-funded projects including ADB-funded projects; and (iv) support to the SATKER procurement team will be essential such as provision of training on ADB procurement process and the support of the Project consultant to facilitate actual implementation of the proposed MSMIP procurement plans. 45. The PCA carried out during the PPTA rated the overall risk associated with procurement for the Project as average. It has recommended a series of risk mitigation measures to be adopted in the short and medium term. 46. Before the start of any procurement, or request for proposals, ADB and the Government will review the public procurement laws of the Central and State Governments to ensure consistency with ADB’s Procurement Guidelines.

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C. Procurement Plan

47. A procurement plan has been prepared as part of the preparation of the Project covering the procurement of works, goods, and recruitment of consulting services required to carry out the Project during the initial period of 18 months. The details of this procurement plan are given in Annex B.

D. Consultant's Terms of Reference

48. All consultants will be recruited according to ADB’s Guidelines on The Use of Consultants (March 2013, as amended from time to time). The terms of reference for all consulting services are detailed in Annex C. Consulting services will include international and national expert inputs. ADB- and INDII-recruited consultants will be selected through quality- and cost-based selection (QCBS) procedures with a standard quality: cost ratio of 90:10. GoI- recruited consultants will be selected through quality based selection (QBS).

VII. SAFEGUARDS

A. Involuntary Resettlement

1. General Safeguards

49. MSMIP is categorized as Involuntary Resettlement Category B for the Project as well as for the subprojects. The implementation of land acquisition and resettlement plans (LARPs) will precede the awarding of construction contracts to the civil works contractors. In compliance with ADB’s SPS (2009), no LARP shall be implemented without prior concurrence from ADB. A three-layered approach is recommended in the administration and management of involuntary resettlement, consistent with the institutional arrangements under the Project. The DGHS, through the CPMU, will be responsible for the implementation and management of LARPs. It will also be responsible in requesting to ADB the issuance of “No Objection” for the award of all civil works to the contractor/s upon compliance with the provisions in social safeguards. The SATKER (PPIUs) will serve as the extension offices of the DGHS in the provinces, the City Governments (LPMUs) will work closely with the staff of CPMU and their respective PPIU. 50. The PISCs will assist the LPMUs in implementing the LARPs, consultations in communities traversed by sewer lines and in periodic internal monitoring. Two resettlement specialists will be recruited for the Project; one international resettlement expert and one National Resettlement Specialist. Following the compliance on LARPs, the PISCs Team Leader will notify the PPIUs that will then advice the CPMU to request ADB for the issuance of “No Objection” for the award of civil works contracts to the contractor/s. Gender and social dimensions.

2. Summary of Impacts and Mitigation Measures

51. The Project consists of five subprojects covering five cities in Indonesia: Cimahi, Jambi, Pekanbaru, Palembang and Makassar. All the five subprojects are qualified as Category B, causing limited resettlement impacts. Three LARPs and two due diligence (DD) reports including a LARP and DD for Cimahi have been prepared. A total of 32.397 ha will need to be acquired for the five cities affecting 63 households or 240 persons.

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52. In Jambi and Makassar, an area of 6.124 ha and 5.1443 ha has already been acquired affecting four households each. These affected households (AH’s) have already received compensation in accordance with the provisions of the local laws and rates negotiated between the households and respective BAPPEDAs. The final negotiated rates were within the price range determined by an independent appraiser. The land was unused and no other assets were affected. DD reports for these two subprojects indicate that the procedures fully comply with the ADB’s SPS requirements. 53. For Cimahi, of the 1.85 ha purchased, an area of 1.6 ha was acquired in 2010-2011 following the local laws and regulations. Compensation was determined based on the appraiser’s report. There are no outstanding involuntary resettlement issues. The DD for this subproject concluded that the acquisition was in compliance with the SPS requirements. The acquisition for the remaining 0.25 ha is complete and affected five households: the land is unused grassland. No other assets were affected 54. For Palembang, the acquisition of 5.7 ha required for the WWTP will affect a total of 28 households. Of these, 24 households (HH) (75 persons) occupy the land with the permission of the land owners and will be physically displaced. The land acquisition will impact 21 houses and other structures and about 190 trees. Almost all the residents work outside the WWTP site and relocation will not have any adverse impact on their occupation and sources of livelihood. However, three households operating small shops on the site will be affected by loss of business incomes. These are provided with additional assistance for their loss of business income. 14 vulnerable households, comprising of 7 HH below the poverty line and another 7 female headed households, will receive additional assistance over and above their entitlements for compensation and assistance. All relocating households are provided with transport allowance and a transition allowance for three months. Affected tenants (five households) are provided with three months rental allowance. 55. For Pekanbaru subproject, a total of 13.454 ha will be required, of which 11.314 ha were acquired in Dec. 2012, affecting 12 HH. The acquisition of the remaining 2.1396 ha will affect an additional 10 households. The land is low-lying and covered by rubber, oil palm and fruit trees, most of the rubber and oil palm trees are old and unproductive. A total of 6,122 trees will be affected. The affected households would be allowed to continue to harvest from their trees until the land is required for clearance and handing over for civil works. Compensation rates for the trees are based on the age and productivity of the trees. Unproductive trees are compensated for their timber value. Five households will be severely affected due to the loss of more than 10% of their household incomes due to lost trees. However, with compensation amount they have received and continued harvest of trees until the land is required for clearance and handing over for civil works will allow them to restore their lost incomes. These households will also give priority in project related employment opportunities during the implementation phase and offered opportunities to participate in the city sponsored income generation programs. The DD for the land already acquired indicate that the procedures followed for the acquisition of land and compensation for land and trees are in accordance with the local laws and regulations and in compliance with the ADB SPS (2009) requirements. 56. In addition to the permanent impacts described above, there will be some temporary impacts during the implementation phase when the sewer lines will be laid under the roads. The impacts will mainly be in access restrictions to roadside establishments and houses. Although any loss of business incomes due to the construction work is not envisaged, a budgetary provision is made to cover any such expenditure that may be identified during the

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implementation phase. Further, project authorities will make every effort to manage the civil works to avoid, or minimize, any adverse impacts, including loss of business incomes.

B. Environment

1. General Safeguards

57. MSMIP is categorized as environment category B in accordance with ADB‘s SPS 2009. An initial environmental examination (IEE) report was prepared for each subproject. Based on the screening for potential environmental impacts and risks, the IEEs concluded that the proposed subprojects can be implemented in an environmentally acceptable manner with the corresponding EMPs. The subproject’s environmental classification as Category B is deemed appropriate for the identified environmental impacts and risks. Each subproject’s Environmental Management Plan (EMP) presents appropriate mitigation measures and monitoring plan. 58. During implementation, the CPMU, with assistance from the National Environmental Advisor of the PISC team shall be responsible for the following activities related to environmental safeguards: (i) confirm that the IEEs are updated in accordance with ADB’s SPS based on detailed designs and submit to ADB for review and approval prior to contract award; (ii) confirm that the required Analisa Mengenai Dampak Lingkungan (AMDAL), a Government of Indonesia (GoI) EIA requirement, has been prepared during detailed design and approved by the respective environment agency, the Badan Lingkungan Hidup (BLH); (iii) confirm that the updated EMP is included in the bidding documents and civil works contracts; (iv) ensure Contractor’s EMPs (CEMPs) are prepared by contractors prior to actual construction; (v) establish a system to monitor environmental safeguards of the subprojects including monitoring the indicators set out in the monitoring plan of the updated EMP; (vi) supervise the implementation of environmental mitigating measures required for the construction activities; (vii) review, monitor and evaluate the effectiveness of the implemented CEMPs, and recommend necessary corrective actions; (viii) prepare monthly and quarterly environmental monitoring reports and submit semi-annual environmental monitoring report to ADB; (ix) ensure timely disclosure of final IEE and updated EMP in locations and form accessible to the public, and (x) address, record, and report on any grievances brought about through the Grievance Redress Mechanism in a timely manner. 59. In compliance with GoI requirements on environmental assessment, Environmental Protection and Management Law of 2009, a separate AMDAL or EIA report will be prepared by the detailed design consultants during the detailed design phase to be funded by the IndII or the GoI. All clearances will be obtained before award of contract. EMP implementation will be ensured by a designated Environment Officer in the PMU. The roles and responsibilities are detailed in the respective EMPs. Stakeholder consultations were conducted through formal and informal focus group discussions from May to November 2012. Issues raised during the consultation are addressed and integrated into the respective EMPs. 60. Implementation of the proposed sewerage subprojects will be fully compliant to ADB’s SPS 2009 requirements on grievance redress mechanism. Each city governments disclosed the proposed mechanism during initial public consultations. It will again be presented to stakeholders during detailed design when more subproject details are available and in area meetings during the construction phase. Complaints about the environmental performance of the subproject during the construction phase can best be handled by various levels including the formation of an ad-hoc City Sewerage Environmental Complaints Committee (CSECC) for the

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expeditious resolution of the complaints, while complaints during the operation phase can be brought to the attention of the local environment agency.

2. Summary of Impacts and Mitigation Measures

61. Screening for environmental impacts was made through a review of the parameters associated with sewerage projects against the components of each subproject's proposed sewage collection network and WWTP. An important consideration in analyzing the environmental impacts of the proposed subprojects is the fact that these are infrastructures for environmental improvement and for reducing the risk to public health from untreated sewage. 62. Adverse environmental impacts during construction of the proposed sewerage systems are temporary, less than significant, and can easily be mitigated. There will be no massive construction activities that can damage the environment. All open trenches shall be adequately shored and braced to provide a safe working environment. The contractors will have a range of options to support the trench during pipe laying operations. Excavated soil is backfilled to the trench after pipelaying and surplus soil hauled to suitable disposal sites. Construction activities for the proposed WWTPs shall be confined in a site to be secured by each city government. Off-site haulage of materials will have an impact that will be mitigated. Typical construction issues are manageable with the implementation of a contractor’s environmental management plan for: (i) erosion and sediment runoff; (ii) nuisance to the public; (iii) noise and dust; (iv) vehicular traffic; (v) construction wastes; (vi) oil and fuel spillages; (vii) construction camps; (viii) occupational health and safety; (ix) public safety and convenience; (x) proper closure of construction sites; and (xi) potential damage to any archaeological and cultural assets. During detailed design and pre-construction phase, potential nuisances and problems to the public during construction shall be addressed by inclusion in the tender documents of specific provisions addressing these issues. 63. Environmental problems due to operation of the proposed WWTPs can be avoided by incorporating the necessary measures in the design and use of appropriate operational procedures provided by the works contractors. The respective implementing unit of the proposed WWTPs shall ensure that plant operators are properly trained in operating the facility and in handling situations that may lead to poor quality effluents. Public health risk can be addressed by keeping the public away from the facility. A written health and safety manual shall be prepared for each WWTP operation by the health and safety coordinator in each city with inputs of the works contractor and PISC. 64. Climate change adaptation considerations shall be included in the design of the proposed WWTPs since these are on low-lying areas and in close proximity to rivers. Changes in the intensity of extreme weather events as well as gradual changes in climate parameters such as precipitation can be damaging to WWTPs. Inadequate attention to this impact can increase the long-term costs of sewerage investments for each city and increase the likelihood that such investments will fail to deliver the benefits for which they were intended. Flooding could affect the structural integrity of the proposed WWTPs. Flooding can also prevent the WWTPs from operating by reducing the head available across the plant. It may also submerge facility components that are supposed to be dry for proper operation. These situations may result to the release of untreated sewage into the environment and increasing the risk to public health. To address this impact, a thorough hydrology and flooding study must be conducted for the proposed sites of the WWTPs early during the design phase to ensure that occurrence of flooding is properly evaluated and the appropriate risk mitigation measures are incorporated into the designs of the WWTPs.

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65. Climate change mitigation considerations will also be included in the design of the proposed WWTPs to avoid releasing the generated methane. Those with membrane covered anaerobic ponds shall be connected to a gas flare. For the upflow anaerobic sludge blanket reactor, the gas stripping unit shall be connected to a gas flare.

C. Indigenous People

66. MSMIP is categorized as Category C on indigenous peoples as there are no identified risks and impacts on any indigenous group. The land acquisition activities under the Project will not cover any ancestral domains. This includes both lands already acquired and for acquisition later for use of the Project

D. Safeguards Compliance Monitoring

67. Identified social and environmental impacts of the project pertain to the component on sewerage development. Impacts to house are limited in scope except for Palembang where 23 HHs are will be resettled. PMUs have technical assistance to manage this. Nonetheless, a safeguards monitoring expert shall be engaged in the PISC to ensure compliance with ADB’s SPS. The expert will report directly to ADB with timely information on safeguards compliance

VIII. GENDER AND SOCIAL IMPACTS

68. Social and Poverty Analysis was conducted to examine social development issues and the project’s potential effects, especially on poor people. Based on this, the Summary Poverty Reduction and Social Strategy (SPRSS), a linked document, identifies the implementation of a Gender Action Plan (GAP), a Stakeholders Communication Strategy, a Consultation and Participation Plan and measures to address identified social risks. 69. GAP enhances sanitation awareness, access to sewerage benefits and strengthen management and operational capacity while facilitating women’s participation and benefit through (i) female quotas for consultations, training and subsidized sewerage monthly fees for poor; (ii) targets for women’s inclusion in hygiene sanitation campaign delivery and in working groups on sanitation and on land acquisition and resettlement; (iii) female quotas in staffing and promotion (iv) equal pay for equal work in civil works construction and sanitation management jobs; and (v) through gender-specific baseline data and reporting. Social inclusion and pro-poor measures include provision of onsite sanitation with livelihood options, as needed, near WWTPs. The action plan will be implemented by the PMUs Gender and Social Development Specialists with GAP budget to be allocated annually by the executing and implementing agencies.

A. GENDER ACTION PLAN (SUMMARY)

1. Gender Classification

70. The purpose of the MSMIP is to improve urban wastewater systems in five major cities namely, Cimahi, Jambi, Makassar, Palembang and Pekanbaru. The Project is in response to the inadequacy of current sanitation systems and the resulting health and environmental problems. The subprojects involve the construction of separate wastewater systems and wastewater treatment plants (WWTP to serve the urban communities, including low income and poor HHs. Women will benefit through special measures for subsidized connections and tariffs,

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employment enhancement, increased participation in decision making, training, institutional and capacity building, and targets for women in project management. The Project is classified as effective gender mainstreaming (EGM) one in design.

2. GAP Purpose and Strategy

71. The Project gender analysis shows that many of the poor live in deprived areas which lack sanitation facilities and services. The significant social and economic burden of illness, health care for the family and other associated domestic responsibilities as a result of not having proper access to proper sanitation, falls primarily on women. Women in these areas earn low incomes as a result of limited access to employment and livelihood opportunities. There are a significant percentage of female-headed households (FHHs) in most project cities14 who are generally poor. Women are in a disadvantaged position to equally and meaningfully share in the Project’s benefits and management despite their central role in water, hygiene and sanitation management. The MSMIP gender strategy will facilitate women’s participation and benefits through GAP implementation (see Table 14 below). These include enhanced sanitation awareness, connections to proper sanitation and off-site wastewater treatment systems, and improved gender sensitive management and operational capacity. Social inclusion and pro-poor measures include provision of on-site sanitation with livelihood options, as needed, near WWTPs. Desludging points in the city will reduce haulage distances from septage collection within non-sewered areas and hence reduce the associated tipping costs and charges.

72. Implementation and Monitoring Arrangements. The GAP is integrated into the overall cost estimates and project implementation arrangements. A national Gender and Social Development Specialist will support the central and local PMU and Service Delivery Organizations (SDOs) to ensure that the GAP and social strategy agreed between the Government and ADB is fully implemented. The PMUs and the SDOs will be responsible for implementing, updating and monitoring the GAP. Sex-disaggregated baseline data and monitoring indicators will be used in quarterly reports to provide GAP progress updates. Gender issues and impacts will be discussed in mid-term reviews and regular progress reports submitted to ADB.

73. GAP Budget. The GOI will provide sufficient resources to implement the GAP within the PMU and across all responsible agencies and sewerage development organizations as they are established. The budget for the GAP is integrated within the overall Project budget. In addition, sanitation/livelihood development assistance will be provided set up where Social Development and Sanitation Advocacy (SDSA) assessment confirms the need for livelihood opportunities and onsite sanitation near WWTP sites.

14 Female-headed households: (Cimahi – 13%, Makassar – 8%, Palembang – 3.2%, Pekanbaru – 12%, Jambi – 5%). Women-headed households tend to be poorer as, for example, in Jambi where 71% of the unemployed and 70% of those unable to attend primary education are women.

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Table 14: Gender Action Plan Project Outputs Gender Actions and Targets

Output 1: Infrastructure development for off-site wastewater systems completed

• At least 30% of participants in public consultation and sewerage connection campaign activities are women and vulnerable groups (such as FHHs - at least 10% overall), who will get full information about subsidized sewage connection fees and criteria for subsidized monthly tariffs.

• At least 30% participation of women at public hearings concerning future sanitation tariff increases, which shall take into consideration gender issues and affordability.

• Information bulletin on risks of HIV/AIDS relayed through appropriate media with civil works contractors providing information/preparing code of conduct for workers and providing information on HIV/AIDS through expert NGO as stipulated in bidding documents.

• Of the 70,270 households with domestic house connections to central sewer systems, at least 10% will be provided to poor and vulnerable groups (including FHHs).

• All of the above 10% poor and vulnerable households (including FHHs) connected under the project will receive subsidized connections and monthly fees.

• Of onsite sanitation managed by CBOs established in non-sewered hot spots near the WWTP sites connecting at least 90% of households disposing wastewater into waterways, at least 30% of households will be from poor, female-headed household or vulnerable groups (if population will otherwise not have access to sanitation infrastructure) implemented in coordination with the eligible NGOs.

• At least 50 women, either as individuals or as part of women’s organisations near the WWTPs will be provided with livelihood and enterprise development training from the Sanitation/Livelihood Development Assistance in coordination with relevant NGO and government agencies for livelihood support.

Output 2: Project implementation support institutionalized

• EA/IAs/SDOs will ensure additional 10% female staff with 10% increase of females in management positions by 2018.

• Specific gender sensitization and sanitation investment and operation/maintenance training modules and technical/management capacity development training are open to managers and staff at all levels (i.e. national, districts)

• To promote professional advancement of female staff, ensure that at least 30%female participants in training on gender, community facilitation, utility management, technical and project/sector management-related skills.

• Public awareness campaigns aimed at creating an appreciation and understanding of the benefits of sewerage systems and the need to pay for adequate charges to cover O&M will ensure 30% women participation.

• At least 30% of all capacity building participants on hygiene and sanitation education, promotion, planning and participatory monitoring (e.g. WWTP impacts) are women.

• At least 30% women in key decision-making and working groups such as Resettlement Committees, monitoring committees, community supervision mechanism for Joint Sanitation Plan implementation, operation and management structure and for onsite sanitation systems.

• National Gender and Social Development Specialist will be hired for implementation and monitoring of GAP.

• The project monitoring system will integrate gender monitoring indicators, • The project will collect sex disaggregated data, provide six monthly reports, and feed data into mid-term

review and PCR.

Institutional management set-up and sanitation awareness (to be delivered under the parallel CDTA)

• Women and community organizations are partners in IEC (to include school-based sanitation and hygiene promotion) and joint sanitation planning and delivery campaigns with 30% women participation.

• 50%-50% male and female community facilitators for public awareness raising (gender sensitive/separate gender groups for training and complaints if necessary).

• CSWG in each city comprising of at least 30% women by 2015. • LIPADs are prepared and implemented for each city with at least 30% of participants are women. CSWG = City Sanitation Working Group, CBO = community based organization, DMF = design and monitoring framework; EA = executing agency, EGM = effective gender mainstreaming, EIA = environmental impact assessment, FHH = female-headed household, GAP = gender action plan; GOI = Government of Indonesia; HHs = households, IA = implementing agency; IEC = Information, Education, and Communication; LIPAD = Local Institutional Development Action Plan, MSMIP = Metropolitan Sanitation Management Improvement Project, NGO = nongovernment organization, O&M = operations & maintenance, PCR = project completion report, PMU = project management unit; SDO = Service Delivery Organization, SDSA = Social Development and Sanitation Advocacy; UPTD = Unit Pelaksanaan Teknis Daerah (Regional Technical Implementation Unit); WWTP = wastewater treatment plant

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74. A Stakeholders Communication Strategy guides the Project in engaging its public and in facilitating behavior change on improved hygiene and sanitation. It identifies vulnerable groups for benefit distribution. Actions and messages are identified to ensure regular flow of project information, to establish information sharing and consultative mechanisms and facilitate stakeholder behavior change for improved hygiene and sanitation. This includes the establishment of Joint Sanitation Advocacy plans with village and city governments and other stakeholders. 75. A Consultation and Participation Plan was also prepared as a guide for engaging key stakeholders at various stages of project life. The Plan ensures that affected persons and vulnerable groups are reached to minimize adverse impacts, enhance benefits and strengthen partnerships for sustainability. 76. Communication and participation strategies will be implemented by the Gender and Social Development Specialists, the Hygiene and Sanitation Marketing Specialists and the Community Mobilization Teams from the parallel CDTA team. Communication and consultation plans are supported by a budget for hygiene and sanitation awareness. 77. The Project will generate employment in civil works and sanitation management. PMU and PPIUs shall ensure compliance with core labor standards on protection of minors, equal pay for equal work by men and women and of the right to join labor organizations. Potential health and sanitation concerns of workers and work camp communities are addressed through a requirement for contractors to provide safe and adequate water and sanitation facilities at construction camps. Because of the incidence of sexually transmitted diseases and HIV/AIDS in all the project cities and the added risk of these among migrant workers, education on HIV/AIDS will be ensured by the LPMU in coordination with Health office and the contractor. PMUs will ensure that Contractor’s Social and Environmental Management Plans include proposed mitigation measures. 78. The gender action plan is in the RRP linked documents. The list of linked documents is in Annex A.

IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION

A. Monitoring

1. Project Performance Monitoring

79. A list of verifiable performance indicators will be prepared by the CPMU in accordance with ADB’s PPMS by Q1 2014. The system will establish a cause-and-effect relationship between the Project and its impact. The PPMS will comprise (i) a comprehensive list of implementation-related performance indicators duly collected, monitored, and recorded by the PPIUs and LPMUs and semi-annually assessed by the CPMU; and (ii) post- completion performance and impact data collected by the CPMU. Baseline and impact data will be disaggregated by city and by other dimensions to be discussed at project inception. Implementation of performance monitoring will integrate financial and other aspects. The CPMU will establish the PPMS satisfactory to ADB within one year of the loan effective date.

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a. Project Performance Monitoring of Environmental Aspects based on the EMPs

80. Project performance monitoring and compliance evaluation for environmental safeguards present the desired outcomes as measurable events by providing parameters or aspects that can be monitored and verified (Table 15). Tendering process advocating environmentally responsible procurement is a desired outcome during the pre-construction phase. This can be verified by checking if EMP requirements are incorporated in construction contracts. Construction phase desired outcomes include effective management of environmental impacts and reduce risk to public. These can be verified by monitoring the number of complaints and accidents. For the operation phase, the WWTP discharges shall meet GoI’s standards for BOD, suspended solids, oil and fats. This can be verified by effluent sampling and laboratory testing.

Table 15: Project Performance Monitoring of Environmental Aspects

Desired Outcomes

Aspects / Parameters to be monitored

Means of Monitoring

MonitorIng Frequency

Implementation Compliance Monitoring

PRE-CONSTRUCTION PHASE Detailed design is environmentally responsive

EMP requirements incorporated in detailed design of proposed sewerage system

Verify detailed design documents

Two reviews: (i) draft detailed design documents and (ii) prior to approval of final documents

Design consultants/ PPIU

CPMU

Tendering process advocates environmentally responsible procurement

EMP requirements incorporated in construction contracts of proposed sewerage system

Verify construction contract documents

Prior to finalization of construction contract documents of proposed sewerage system

Design consultants/ PPIU

CPMU

CONSTRUCTION PHASE Effective management of environmental impacts during construction

Number of public complaints on construction activities

Verification of contractor’s records; PPIU/ LPMU’s coordination with local officials

Once a month Contractor Construction supervision consultants, CPMU/ PPIU

Reduce risk to workers and the public during construction

Number of accidents involving construction activities

Verification of contractor’s records; PPIU/ LPMU’s coordination with local officials

Once a month Contractor Construction supervision consultants, CPMU/ PPIU

OPERATION PHASE WWTP effluents meets Provincial Effluent Standards and GoI’s National

Effluent quality not to exceed 50mg/l of BOD, 100mg/l of suspended solids, and

Effluent sampling and laboratory tests

Twice monthly City’s Unit Perlaksan Teknis Daerah

City’s BLH

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Desired Outcomes

Aspects / Parameters to be monitored

Means of Monitoring

MonitorIng Frequency

Implementation Compliance Monitoring

Standards for Effluent Quality, Ministry of Environment Decree 112, 2003

10mg/l of fats and oil

Propose sewerage system operation acceptable to the public

Public Complaints on sewerage system operation

Verification of operation records

Once a year City’s Unit Perlaksan Teknis Daerah

City’s BLH

b. Project Performance Monitoring of Social Aspects based on the

GAP and Social Dimensions

81. Covenants (e.g., on the provision of budget and staff) as well as process and performance targets on gender empowerment and social inclusion as reflected in the Design and Monitoring Framework, GAP and the SPRSS and in the Communication Strategy and the Consultation Plan will be monitored through Project Performance Monitoring, compliance monitoring and through periodic evaluations and reviews. LPMUs will also ensure that contractors comply with social safeguards in the SPRSS to address potential risks relative to the core labor standards and to health and environmental conditions at worker camps. 82. Gender-specific indicators to monitor project outcomes and impacts will be established by the CPMU in coordination with the Gender and Social Development Specialists and in accordance with ADB’s PPMS. The PISCs, under the Central Project Consultants, will assist the LPMUs in implementing, monitoring and reporting to the ADB. Critical gender and social issues, problems, and constraints are identified and course adjustments are recommended, as necessary. 83. Participatory evaluation tools involving men and women shall be designed by the Gender and Social Development Specialists with the monitoring and evaluation teams. The result of periodic monitoring and evaluation will also be shared with village governments, key partners and community and women groups in the course of preparing and implementing joint sanitation.

2. Compliance Monitoring

84. The Project will be reviewed jointly by the EA, IAs, and ADB semi-annually to assess implementation progress. A comprehensive midterm review will be carried out by the EA, IAs and ADB three years after commencement of the Project. 85. Summary of compliance milestones for environmental safeguards are:

• IEEs are updated during detailed design and submitted to ADB for review and approval prior to contract award;

• AMDAL document has been prepared during detailed design and approved by the respective GoI's environment agency;

• EMP is updated during detailed design and included in the bidding documents and civil works contracts; and

• CEMPs are prepared by contractors prior to actual construction.

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B. Evaluation

1. Project Review

86. The CPMU, PPIUs and LPMUs will quarterly review and evaluate project performance, while the CPMU and ADB will jointly assess project implementation at least once every year.

2. Midterm Review

87. The Government, CPMU, and ADB will conduct a comprehensive midterm review three years after the Project starts. The midterm review will (i) review and evaluate the scope, design, and implementation arrangements of the Project; (ii) evaluate the progress of the institutional development and capacity of the implementing agencies; (iii) identify changes needed in any of the areas mentioned above; (iv) assess the implementation performance against agreed project indicators and targets; (v) review and establish compliance with the loan covenants; and (vi) identify critical issues, problems, and constraints, if any, and, if necessary, recommend adjustments in project design or implementation arrangements.

C. Reporting

1. Quarterly Progress Reports

88. The Government will provide ADB with detailed quarterly progress reports on project implementation, following ADB standard procedures within 30 days after each quarter. The reports will be in a format acceptable to ADB and indicate:

a. Progress against established targets b. Status of performance indicators c. Problems encountered and steps taken to resolve the problems d. Compliance with safeguards and loan covenants, and e. Program activities proposed for the following quarter

2. Project Completion Report (PCR)

89. Within six months of physical completion of all works, the CPMU will submit a project completion report to ADB, in ADB format.

3. Other Reports

90. A detailed implementation plan for monitoring performance and preparing benchmark information for ADB’s review and concurrence within six months of the effective date.

91. Baseline information within one year of the effective date. Thereafter, the CPMU shall submit semi-annual reporting evaluation reports throughout Project implementation to be included in the progress reports.

D. Stakeholder Communication Strategy

92. A Stakeholders Communication Strategy guides the project in engaging its publics in a way that is timely, inclusive, transparent and participatory. It helps ensure a regular flow of reliable project information and allows for a two-way exchange between the project implementers and stakeholders. It will also facilitate behavior change for improved hygiene and sanitation.

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93. The Stakeholder Analysis that was undertaken identified key participants that are important in achieving project objectives, expanding benefits and lessening project risks. They are:

• Government agencies responsible for the design, management and implementation of the project which include the Ministry of Public Works; DKP, Sanitation POKJA and SATKER, BLUD, PDAM as service delivery organizations

• Village governments and community organizations responsible for community-level environmental improvements and household sanitation;

• Target communities with recognition of special needs of women, vulnerable groups and sanitation hot spots

• Institutions and businesses in the Central Business District and private sector service providers who share an interest in the outcomes and/or impacts of the project.

94. Key project stakeholders and their interests are defined in Table 21 which also identifies key messages, means of communication, and timeline of delivery during the project cycle. It identifies vulnerable groups for benefit distribution to ensure that their needs are also prioritized during project planning and implementation.

95. The Plan will cover media, community planning, sanitation promotion and other stakeholder communication activities for timely disclosure of information. Outreach and joint planning activities will actively involve stakeholders (sanitation agencies, village officials, community organizations, affected persons and non-government organizations) in improving project outcomes and overall impacts.

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Table 16: MSMIP Stakeholder Communication Strategy

Objectives Key Risks Main

Stakeholders Messages Means of Communication (Channels/Languages Activities)

Timeline Responsibility Resources

1 Ensure a regular flow of reliable information

Language barrier Lack of familiarity with sewerage systems and WWTPs

PU, DKP and City Sanitation Working Group City, sub-district and village governments

Key project benefits Main impacts (positive and negative; social and environmental) ADB processes, principles and mechanisms for gender-sensitive and inclusive project Establish transparency and accountability mechanisms to involve civil society

FGD, small group discussions with agency and local officials Assessment and planning meetings Project Information Bulletin EA/IA -Regular reports and meetings to update on developments Appropriate print and audio-visual media

From outset of project

Project Management Unit (PMU)/LPMU officials SDSA and Community mobilization team (CMT) BLUD PDAM SATKER

Logistical cost of meetings and travel to villages from regular funds of EA/IA for SDSA/CMT Cost of IEC materials from ADB (CDTA) grant for Sanitation awareness Technical assistance under PISC ADB loan SDSA/CMT staff from loan or regular funds of IA/SDO for sanitation marketing – about $23,000/year per city

2 Ensure a regular flow of reliable information Two way exchange between the

Language barrier Lack of familiarity with sewerage systems, sewer lines and WWTP Low priority for

Target community members

Same as Above Key project benefits Main impacts (negative and positive; social and environmental)

FGD, small group discussions with affected persons, women, vulnerable groups and sewer line and WWTP site communities Community meetings

From outset of project

PMU Gender and Social Dev Specialists Social Development and Sanitation Advocacy Unit

-Do-

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Objectives Key Risks Main

Stakeholders Messages Means of Communication (Channels/Languages Activities)

Timeline Responsibility Resources

project implementers and stakeholders

sanitation Lack awareness on linkage between sanitation and safe water Fears of high tariffs and connection fees

50% women in consultations on sewerage connection, capacity building on hygiene and sanitation Livelihood/ Sanitation fund mechanism and procedures for application Subsidized connection fees and tariffs

Project Information Bulletin Appropriate print and audio-visual media Community/women organizations/village government participate in socialization and planning for connection; joint planning with project staff on sanitation marketing

Community mobilization team (CMT) Village officials/leaders and community organizations

3 Ensure a regular flow of reliable information Establish information sharing and consultative mechanism

APs lack familiarity with impacts of sewerage systems and WWTPs Lack experience and skills in negotiating on entitlements Lack knowledge on rights and procedures for lodging complaints Insufficient support to replace lost assets/income Affordability of sanitation services Lack of awareness on

Project affected persons

Same as Above Land acquisition and resettlement issues Planned mitigation measures AP Entitlements and timelines, responsibility and resources, compensation rates, how to obtain grievance redress, resettlement GRM,CSECC and other Resettlement Plan related information Subsidized connection fees/ tariffs

FGD, small group discussions with affected persons, women, vulnerable groups Community meetings Organizing for resettlement plan implementation Project Information Bulletin Appropriate print and audio-visual media Formulating compensation and entitlement package

From outset of project

PU Gender and Resettlement specialists LPMU SDSA/ CMT Village officials

-Do– Resettlement planning budget Subsidy for sewerage connection and/or monthly fees for poor and vulnerable from ADB loan

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Objectives Key Risks Main

Stakeholders Messages Means of Communication (Channels/Languages Activities)

Timeline Responsibility Resources

how to report and address possible environmental impacts

Communities around WWTP site and sewer lines

Information on potential environmental impacts of sewer lines and WWTP and reporting of observed impacts or complaints; How to reach CSECC Establishment of participatory monitoring and reporting mechanism at community level – i.e. to report on odor from WWTP, poor sanitation at construction camp, etc.

Project Information Bulletin Community meeting Posters/notices on what to do/who to contact about environmental complaints Training and designating responsibility center in community for environmental monitoring and reporting

PU Gender/SD and environmental specialists LPMU Sanitation team Village officials and community-based monitoring group (to include women) GRM and CSECC

Capacity building and environmental management budget Village government counterpart Environmental monitoring funds

4 Ensure a regular flow of reliable information Establish information sharing and consultative mechanism

Lack of time Lack of interest Constraints in reaching vulnerable groups

Women and vulnerable groups

Project information and benefits Validation of land parcels/owners in project site Identification and constraints of vulnerable groups Proposed measures to address affordability problems – universal connection, subsidized tariffs

FGD, small group discussions with women and vulnerable groups Community/ planning meetings Project Information Bulletin Appropriate print and audio-visual media

From beneficiary mobilization phase

Gender SDSA consultants/ specialists Community mobilization team (CMT)

GAP budget of LPMU and SDO from APBD or regular funds

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Objectives Key Risks Main

Stakeholders Messages Means of Communication (Channels/Languages Activities)

Timeline Responsibility Resources

Women’s and men’s roles and responsibilities on hygiene and sanitation

5 Ensure a regular flow of reliable information Establish information sharing and consultative mechanism

Lack of trust or cooperation between government agencies and NGOs

Civil society –Community Based Organizations(CBOs) with health, women and sanitation concerns (e.g. PKK, KSM, PSM, LPM, PKM) NGOs such as Berantas in Jambi

Clarification of partnership terms Roles and responsibilities on community sanitation Role in training on sanitation promotion Joint planning and implementation of Sanitation Marketing Livelihood development in WTTP/training for O and M of onsite sanitation facility Roles and responsibilities for transparency and accountability in project implementation

Dialogue Joint planning on sanitation advocacy Sanitation marketing Participatory assessment and planning Participatory planning

From outset of project Ongoing sanitation marketing phase

Community mobilization team (CMT) CBOs (e.g. PKK, KSM, PSM, LPM, PKM) NGOs such as Berantas in Jambi

Logistical cost of staff travel to villages from regular funds of EA/IA for SDSA/CMT Cost of communication materials from Sanitation Marketing CDTA grant Joint Sanitation Marketing workshop under Sanitation Marketing grant/IA regular funds

6 Ensure a regular flow of reliable

Satisfied with existing arrangements

Private sector – commercial district;

Impact of WWTP operation)

Coordination meeting Memorandum of

From outset of project

LPMU or utility service agency officials

-do-

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Objectives Key Risks Main

Stakeholders Messages Means of Communication (Channels/Languages Activities)

Timeline Responsibility Resources

information potential partners such as desludging companies

Areas of cooperation in non-service areas or served areas Terms of cooperation – e.g. special pricing for use of WWTP, etc

Understanding on areas and terms of cooperation

Ongoing

7 Establish information sharing and consultative mechanism

Lack time, commitment to ensure participation and address concerns of women and vulnerable groups

EA and IA Executing/ Implementing agencies service utility organizations-BLUD, PDAM, SATKER

Gender Awareness – equal roles of men and women in hygiene and sanitation management at home and in community Ensuring participatory, inclusive processes and targets in design and operations

Addressing information and connection requirements in sanitation hot spots, women and vulnerable groups

Gender awareness orientation; planning workshop Policy setting

From project outset to end of project

Central PMU, Local PMU Utility offices’ Gender Specialists and Technical Assistance

GAP budget of Agency/ APBD - Local Government Budget for Income and Expenditure Logistical cost of meetings under regular operations fund

8 Establish information sharing and consultative mechanism

Satisfied with sanitation status quo Lack of funds and interest on maintenance

Sanitation hot spot communities In WWTP sites: Sambala,

Key project benefits Main impacts (positive and negative; social and

Community meetings Participatory assessment and planning Appropriate print and

Beneficiary mobilization phase to end of project

LPMU SDSA Unit CMT Cooperatives and Small and Medium

Logistical cost of meetings from regular operations fund

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Objectives Key Risks Main

Stakeholders Messages Means of Communication (Channels/Languages Activities)

Timeline Responsibility Resources

Makassar Sei Selayur, Palembang Rejosari Village, Pekabaru Leuwigajah Village, Cimahi Rajawali village, Kangkung farm, Jambi

environmental) ADB processes, principles and mechanisms for gender-sensitive and inclusive project Selection criteria, key activities and modes of participation for onsite sanitation or livelihood component, participation benefits and responsibilities Commitment setting to participate Livelihood/ Sanitation fund mechanism and procedures for application.

audio-visual media FGD, small group discussions with vulnerable groups, women, vulnerable groups, WWTP and sewer line communities Consultation meetings to gather inputs and validate proposed plans (at appropriate stages of detailed design and implementation) Disclose project information, and projected impacts of sewer lines and WWTP at awareness raising stage Planning for livelihood development/sanitation improvement near WWTP sites

Enterprise Agency (Dinas Koperasi dan UKM) SDSA Unit NGO partners on livelihood and/or onsite sanitation establishment

Planning for livelihood and sanitation improvement options from capacity building budget of WWTP Livelihood Development Fund/loan or in coordination with Cooperatives and Small and Medium Enterprise Agency (Dinas Koperasi dan UKM), APBD, etc.

9 Establish information sharing and consultative mechanism

Dependence on paid advertisements

Local media

Role of media and areas of cooperation on sanitation promotion Regular news and features, monitoring results Recommended

Dialogue on mode of cooperation on sanitation improvement to also encourage non-paid advocacy on sanitation by media Collaboration on communication strategy Coordination on

Public awareness stage Ongoing sanitation marketing

CPMU/LPMU Sanitation Marketing Specialists/ consultants

Consultation costs from Sanitation Marketing budget of IA/SDO Production of radio spots, IEC tools – grant funds

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Objectives Key Risks Main

Stakeholders Messages Means of Communication (Channels/Languages Activities)

Timeline Responsibility Resources

forms and targeted messages for specific audiences such as open defecators, legislators on sanitation policy, etc.

presentation of news worthy project events and milestones

(CDTA) for Hygiene and Sanitation promotion

10 Establish information sharing and consultative mechanism

Lack of understanding and support for sewerage development by policy makers

Legislators and decision and influence makers

Role of sanitation policy and policy makers in sanitation promotion Support needed from policy makers for MSMIP Commitment of support for city-wide campaign on environmental sanitation

Dialogue Planning meetings Information material on local sanitation situation, impacts, future prospects Sharing of successful case studies on policy and sanitation improvement

Before start of project Ongoing sanitation marketing

CPMU LPMU SDSA – Gender and Social Development Specialist/Consultant and Hygiene and Sanitation Marketing Specialist/Consultant Resettlement Specialist

Logistical costs of communications from regular operating funds for SDSA

11 Facilitate stakeholder behavior change for improved hygiene and sanitation

Landowners of rental homes are out of town People do not connect for various reasons – e.g. limited space, cost of repairing house after construction Lack of commitment of local officials to implement action plan on sanitation to change norms on open defecation,

Village officials and community organizations for their support Households and businesses in target areas Households in sanitation hotpots

Economic, health, aesthetic benefits of connection to sewerage service Impact of poor sanitation and waste water disposal on water resources The roles and responsibilities of IA, Sanitation POKJA, village government and community organizations in

Project information and sanitation education drive by a roving sanitation marketing group Community assessment and planning for mass sewerage connection and environmental sanitation Community dialogue to address identified implementation issues and enhance measures for mitigation of negative impacts (e.g. construction)

During detailed design and construction of sewer lines and laterals Awareness raising - ongoing sanitation marketing phases

SDSA/CMT Village government and CBOs - PKK, KSM, PSM, LPM, PKM CMT and community facilitators

Flyers, radio spots and other information materials from Sanitation marketing budget– ADB grant for CDTA Cost of field work by roving SDSA and Community Mobilization

39

Objectives Key Risks Main

Stakeholders Messages Means of Communication (Channels/Languages Activities)

Timeline Responsibility Resources

garbage disposal, hygiene and sanitation practices, etc.

socialization on sanitation and the project The need to share the capital cost of sanitation services to pay back borrowed funds The linkage between the desired level of services, cost contribution and operations and maintenance expenditure and waste water tariffs Subsidized connection fees, tariffs and eligibility criteria

Sewer connection drive Outreach for out of town homeowners Joint Sanitation Awareness and Advocacy Plan to identify messages for key stakeholders” Sustained dialogue to support behavior change and community commitment setting and action plans on sanitation

SDSA/ Sanitation Marketing Specialists CMT and/or community facilitators Sanitation Marketing Specialists

teams – regular funds of Imple-menting Agency and SDO

12 Facilitate stakeholder behavior change for improved hygiene and sanitation

Limited reach of sewerage connection Sanitation hot spots and continued disposal of waste water and garbage into rivers and waterways

City and village government Community organizations Building authorities

Roles and responsibilities for continuing environmental sanitation The need for local initiatives for overall sanitation management – e.g. rules and regulations Need to sustain quality of water resources Enhance role of women and men in sanitation

Joint planning for sanitation marketing and a common campaign (e.g. river clean-up campaign) Community assessment and action planning to encourage villages to formulate rules and support measures to address water waste disposal problems Joint Sanitation Awareness and Advocacy Plan to identify messages for key stakeholders and establish continuing multi-stakeholder cooperation on

Awareness raising - ongoing sanitation Marketing phases

Sanitation and Hygiene Marketing Specialists/ SDSA Unit/ CMT in collaboration with other health and sanitation programs, village and city offices Village, city governments Sanitation POKJA Community leaders

Cost of joint action planning for sanitation marketing from Hygiene and Sanitation Awareness budget Contribution from village government, other agencies for respective roles in implementing respective

40

Objectives Key Risks Main

Stakeholders Messages Means of Communication (Channels/Languages Activities)

Timeline Responsibility Resources

common campaign – e.g. river clean up Capacity building of communities and community facilitators on hygiene and sanitation and village governments on Joint Action Plan implementation

action plans

AP = affected persons; AH = affected household; APBN/D = Central/Local Government Budget for Income and Expenditure; BLUD = Badan Layanan Umum Daerah; CBO = community-based organization; CDTA = capacity development technical assistance; CMT = Community Mobilization Team; DED = detailed engineering design; EA = executing agency; FGD = focused group discussion; GAD = gender and development; HH = household; GRM = Grievance Redress Mechanism, IA = implementing agency; LIDAP = Local Institutional Development Action Plan, O&M = operation and maintenance, PDAM = Water utility; PKK = Program Kesejahteraan Keluarga; PKM = Pengabdian Kepada Masyarakat, PU = Ministry of Public Works; SD = Social development; SDSA Unit = Social Development and Sanitation Advocacy, SWM = Sanitation Water Management; TA = technical assistance, WWTP = wastewater treatment plant

41

X. ANTICORRUPTION POLICY

96. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the Project. All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all Project contractors, suppliers, consultants and other service providers. Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the Project. 97. To support these efforts, relevant provisions are included in the loan agreement/regulations or grant agreement/regulations and the bidding documents for the Project. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the Project.15 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all Project contractors, suppliers, consultants and other service providers. Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the Project.16

XI. ASSURANCES

98. In addition to the standard ADB assurances, the Government has also provided the following assurances:

(i) the Government will (a) submit, in a timely manner, the annual budgetary appropriation requests; and (b) disburse counterpart funds promptly when needed during each year of project implementation;

(ii) the Government will ensure that by June 2015 the local government in each participating city will assign on full time basis adequate number of staff to handle wastewater management;

(iii) prior to project completion the Government will ensure the local government in each participating city shall establish a BLUD mechanism for wastewater management;

(iv) the Government will ensure the local government in each participating city to fund any operational and cash flow shortfalls of the SKPD responsible for wastewater management;

(v) prior to project completion the Government will ensure that local government in each participating city will adopt a regulatory framework that will (a) impose mandatory sewerage connection for residential and commercial establishments in the sewered areas; (b) ensure the sewerage tariffs to be imposed by SKPD responsible for waste water management meet both (i) the cost recovery of the expenses for O&M and periodic major maintenance expenses of the sewerage facilities; and (ii) the expenses required for the sewerage connections; (c) require in non-sewered areas, all residential and commercial establishments have individual or communal sanitation systems which meet certain technical standards; and (d) impose on mandatory basis regular desludging by reputable service providers of the sanitation systems in the non-sewered areas;

15 Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 16 ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp

42

(vi) By project completion the Government will ensure (a) the local government in Cimahi will install around 9,900 sewered connections for residential and commercial establishments (b) the local government in Jambi will install around 20,200 sewered connections for residential and commercial establishments; (c) the local government in Makassar will install around 14,400 sewered connections for residential and commercial establishments; and (d) the local government in Pekanbaru will install around 17,200 sewered connections for residential and commercial establishments.

(vii) By project completion the Government will ensure (a) the local government in Cimahi construct at least 12 community based sanitation systems (b) the local government in Jambi construct at least 16 community based sanitation systems; (c) the local government in Makassar construct at least 12 community based sanitation systems; and (d) the local government in Pekanbaru construct at least 24 community based sanitation systems.

(viii) The Government will ensure that all project activities are designed and implemented in accordance with the principles of ADB’s Policy on Gender and Development (1998) and the Gender Action Plan is fully implemented including, but not limited to ensuring: (a) female participation equal to 30% in public consultation and sewerage connection campaign activities; female participation equal to 30% in training provided under the Project for gender, community facilitation, utility management, technical and project/sector management-related skills; (c) the collection of sex-disaggregated data; and (d) gender inclusive design of physical project facilities;

(ix) Within 3 months of project effectiveness, the Government will: (a) establish a complaint and problem management mechanisms acceptable to ADB and appoint grievance redress focal person in LPMU and each neighbourhood committee to effectively: (b) review and document eligible complaints of project stakeholders; (b) proactively address grievances; (c) provide the complainants with notice of the chosen mechanism/action; and (d) prepare periodic reports to summarize the number of complaints received and resolved, and final outcomes of the grievances and chosen actions and make these reports available to ADB as part of the quarterly progress reports. Eligible complaints include those related to the project, any of the service providers, any person responsible for carrying out the project, complaints on misuse of funds and other irregularities, and grievances due to any safeguard or social issues, including involuntary resettlement, environment and gender; and

(x) Upon the completion of the construction of the sanitation facilities, the Government will initiate the process of transferring the facilities to the local governments of the participating cities.

XII. ACCOUNTABILITY MECHANISMS

99. People who are, or may in the future be, adversely affected by the project may submit complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s operational policies and procedures. Before submitting a complaint to the Accountability Mechanism, affected people should make a good faith effort to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they approach the Accountability Mechanism.

43

XIII. RECORD OF PAM CHANGES

100. The draft PAM was reviewed and endorsed by the Government during loan negotiations that was held on 28-29 January 2014.

44

Annex A

RRP LIST OF LINKED DOCUMENTS

1. Loan Agreement: A-Loan

2. Loan Agreement: B-Loan

3. Sector Assessment (Summary): Sanitation

4. Project Administration Manual

5. Contribution to the ADB Results Framework

6. Development Coordination

7. Financial Analysis

8. Economic Analysis

9. Country Economic Indicators

10. Summary Poverty Reduction and Social Strategy

11. Gender Action Plan

12. Initial Environmental Examination: Cimahi City Off-Site Wastewater Collection System and Treatment

13. Initial Environmental Examination: Jambi City Off-Site Wastewater Collection System and Treatment

14. Initial Environmental Examination: Losari Off-Site Wastewater Collection System and Treatment

15. Initial Environmental Examination: Palembang City Off-Site Wastewater Collection System and Treatment

16. Initial Environmental Examination: Pekanbaru City Off-Site Wastewater Collection System and Treatment

17. Resettlement Plan: Cimahi City Off-Site Wastewater Collection System and Treatment

18. Resettlement Plan: Palembang City Off-Site Wastewater Collection System and Treatment

19. Resettlement Plan: Pekanbaru City Off-Site Wastewater Collection System and Treatment

20. Risk Assessment and Risk Management Plan

Supplementary Documents 21. Summary of Stakeholder Consultation and Participation

22. Technical Assistance: Capacity Development for the Metropolitan Sanitation Management Investment Project

45

Annex B

PROCUREMENT PLAN

Project Name: Metropolitan Sanitation Management Investment Project

Executing Agency: Directorate General of Human Settlements, Ministry of Public Works

Loan Number: TBD Loan Amount: $80 million (OCR) $40 million (AIF)

Date of first Procurement Plan: 29 January 2014

Date of this Procurement Plan: 29 January 2014

A. Process Thresholds, Review and 18-Month Procurement Plan

Project Procurement Thresholds 1. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works.

Procurement of Goods and Works Method Method Threshold International competitive bidding (ICB) for works Above $10,000,000 National competitive bidding (NCB) for works $10,000,000 or less Shopping for works Up to $100,000

ADB Prior or Post Review

2. Except as the ADB may otherwise agree, the following prior or post review requirements apply to the various procurement and consultant recruitment methods used for the Project.

Procurement Method Prior or Post Comments Procurement of Goods and Works ICB Works Prior NCB Works Prior/Post 1st contract subject to prior

approval by ADB; succeeding contract packages for Post review

Shopping for Works Prior/Post 1st contract subject to prior approval by ADB; succeeding contract packages for Post review

Recruitment of Consulting Firms QCBS and QBS Prior Recruitment of Individual Consultants Individual Consultants Prior

Works Contracts Estimated to Cost More Than $10 Million 3. The following table lists Works Contracts for which procurement activity is expected to commence within the next 18 months.

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Annex B

General Description Contract

Value $millio

n

Procurement Method

Prequalification of Bidders

Advertisement Date

Contract Package

(1) (2) (3) (4) (5) (6) Sewerage Facility - Works A 1 Cimahi City a. Waste Water Treatment

Plant 12.35 ICB No Q1 - 20151 1

2 Jambi City a. Waste Water Treatment

Plant 10.52 ICB No Q1-2015 1

b. Sewerage System 12.42 ICB No Q1-2015 1

3 Makassar City a. Waste Water Treatment

Plant 11.85 ICB No Q1-2015 1

b. Sewerage System 27.87 ICB No Q1-2015 1 4 Pekanbaru City a. Waste Water Treatment

Plant 13.13 ICB No Q1-2015 1

b. Sewerage System 14.06 ICB No Q1-2015 1

Consulting Services Contracts Estimated to Cost more than $1 million 4. The following table lists consulting services contracts for which procurement activity is expected to commence within the next 18 months with indication of the funding and recruitment agents.

General description Contract value

($million)

Recruitment method

Advertisement date

(Quarter/year)

International or national

assignment (person/months)

Comments

1 Jambi City2 detailed

engineering design 1.08 QCBS Q1 - 2013 GoI funded and

recruited 2 Pekanbaru City3 Detailed

engineering design 1.28 QCBS Q1 – 2013 GoI funded and

recruited 3 Capacity Building

and Project Management Assistance CDTA4 ( ADB )

2.0 QCBS Q4 - 2013 34 international 84 national 118 total

ADB funded and recruited

4 ADB Project Implementation Support Consultants, (PISC)

13.75 QCBS Q1 – 2014 215 international 1,073 national

1,288 total

ADB funded GoI recruited

1 Publication of Invitations to Bid may be done during the 1st week of the Quarter. Submission of the Bids are done 7 to 10 days after publication.

2 Consulting Services will be funded by GoI 3 Consulting Services will be funded by GoI 4 Capacity Development Technical Assistance

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Annex B

Works Contracts Estimated to Cost less than $10 million and Consulting Services Contracts less than $1 million

5. The following table groups smaller-value Works, Goods, and Consulting Services Contracts for which procurement activity is expected to commence within the next 18 months with indication on the organisation responsible for funding/procurement.

General Description Value ($million)

No. of Contracts

Procurement / Recruitment

Method

Comments

Sewerage Facility – Works 1 Cimahi City

Sewerage System

5.34 1

NCB

B. Indicative List of Packages Required Under the Project 6. The following table provides an indicative list of all procurement (goods, works, and consulting services) over the life of the project, including those of the other cofinanciers.

General Description Estimated Value

$million

Estimated number of Contracts

Procurement Method

Domestic Preference Applicable

Comments

Sewerage Facility - Works 1 Cimahi City – Waste

Water Treatment Plant

12.35 1 ICB No

2 Jambi City - Waste Water Treatment Plant

10.52 1 ICB No

3 Jambi City – Sewerage System

12.42 1 ICB No

4 Makassar City - Waste Water Treatment Plant

11.85 1 ICB No

5 Makassar City – Sewerage System

27.87 1 ICB No

6 Pekanbaru City - Waste Water Treatment Plant

13.13 1 ICB No

7 Pekanbaru City – Sewerage System

14.06 1 ICB No

8 Cihami City – Sewerage System

5.34 1 NCB No

Sewerage Facility – Consulting Services 9 Jambi City

Detailed engineering design (GoI)

1.08

1

QBS

10 Pekanbaru City Detailed engineering and design (GoI)

1.28 1 QBS

11 Capacity Building and Project Management Assistance CDTA8 ( ADB )

2.0 1 QCBS 34 international pm 84 national pm 118 total pm

12 ADB Project Implementation Support Consultant (PISC)

13.75 1 QCBS 71 international pm 1072 national pm

1143 total pm

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Annex B

C. National Competitive Bidding a. General 7. The procedures to be followed for National Competitive Bidding shall be those set forth in Presidential Decree No. 54/2010 as amended from time to time, the latest being Presidential Decree No. 70/2012 or the New Procurement Law of the Republic of Indonesia, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the Procurement Guidelines. b. Registration (i) Bidding shall not be restricted to pre-registered firms and such

registration shall not be a condition for participation in the bidding process.

(ii) Where registration is required prior to award of contract, bidders: (i) shall be allowed a reasonable time to complete the registration process; and (ii) shall not be denied registration for reasons unrelated to their capability and resources to successfully perform the contract, which shall be verified through post-qualification.

c. Prequalification

Post-qualification shall be used unless prequalification is explicitly provided for in the Loan Agreement/Procurement Plan. Irrespective of whether post-qualification or prequalification is used, eligible bidders (both national and foreign) shall be allowed to participate.

d. Joint Ventures

A bidder declared the lowest evaluated responsive bidder shall not be required to form a joint venture or to sub-contract part of the supply of goods as a condition of award of the contract.

e. Preferences

(i) No preference of any kind shall be given to domestic bidders or for domestically manufactured goods.

(ii) Regulations issued by a sector ministry, provincial regulations, and local

regulations that restrict national competitive bidding procedures to a class of contractors or a class of suppliers shall not be applicable.

f. Advertising

(i) Invitations to Bid (or prequalify, where prequalification is used) shall be advertised in at least one widely-circulated national daily newspaper or freely accessible, nationally-known website allowing a minimum of seven (7) days for the preparation and submission of bids and allowing potential bidders to purchase bidding documents up to at least twenty-four (24)

49

Annex B

hours prior to the deadline for the submission of bids. Bidding of NCB Contracts estimated at $500,000 or more for goods and related services or $1,000,000 or more for civil works shall be advertised on ADB’s website via the posting of the Procurement Plan.

(ii) Bidding Documents shall be made available by mail, electronically, or in

person to all who are willing to pay the required fees, if any. (iii) Bidders domiciled outside the area/district/province of the unit responsible

for procurement shall be allowed to participate regardless of the estimated value of the Contract.

(iv) Foreign bidders from ADB-member countries shall not be precluded from

bidding. g. Bid Security

Where required, the Bid Security shall be in the form of a bank guarantee from a reputable bank.

h. Bid Opening and Bid Evaluation

(i) bids shall be opened in public immediately after the deadline for submission of bids.

(ii) Evaluation of bids shall be made in strict adherence to the criteria

declared in the bidding documents. (iii) Bidders shall not be eliminated from detailed evaluation on the bases of

minor, non-substantial deviations. (iv) No bid shall be rejected on the basis of a comparison with the owner’s

estimate or budget ceiling without the ADB’s prior concurrence.

(v) The contract shall be awarded to the technically responsive bid that offers the lowest evaluated price.

i. Rejection of All Bids and Rebidding

(i) Bids shall not be rejected and new bids solicited without the ADB’s prior concurrence.

(ii) When the number of responsive bids is less than three (3), re-bidding

shall not be carried out without the ADB’s prior concurrence. j. ADB Member Country Restrictions

Bidders must be nationals of member countries of ADB, and offered goods and services must be produced in and supplied from member countries of ADB.

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Annex C

ADB PROJECT IMPLEMENTATION SUPPORT CONSULTANT (PISC)

Draft Terms of Reference

A. Background

1. The Metropolitan Sanitation Management Investment Project (MSMIP) will provide improved urban wastewater services in five major cities in Indonesia: Cimahi, Jambi, Makassar, Palembang and Pekanbaru. The project will provide first time off-site sewerage and wastewater treatment facilities for the Central Business District of the Cities. The MSMIP responds to the needs of these urban communities, including low-income households, by optimizing existing assets, expanding service coverage, improving governance and building local institutional capacity for community-based and government-owned wastewater service providers and the regional governments. The MSMIP subprojects for Palembang are to be funded by INDII. The MSMIP subprojects in Cimahi, Jambi, Makassar and Pekanbaru will be funded by ADB. These four cities that will be covered by this PISC. 2. The PISC will provide detailed sub-project construction supervision of the off-site sewerage and wastewater treatment plants planned for Cimahi, Jambi, Makassar and Pekanbaru, safeguard related aspects as well as support to the Central Project Management Unit (CPMU), Provincial Project Implementation Units (PPIUs) and Local Project Management Units (LPMUs). 3. The MSMIP civil works will be complemented by a Capacity Development Technical Assistance program or CDTA consultancy services, which aims to provide initial project management assistance during the period prior to mobilization of the of the PISC. On mobilization of the PISC, the responsibility for supervision of implementation of the sub-projects will transition to the PISC. It is necessary to ensure that activities of the various project consultants are coordinated and synchronized to meet project objectives. These consultants will comprise the following groups:

(i) DED and AMDAL Consultants funded and hired by INDII for Cimahi, Makassar and Palembang, DED and AMDAL Consultants funded and hired by GoI for Jambi and Pekanbaru,

(ii) Project Support Consultants (PSC) to be funded by INDII for Palembang (to be available via a separate TOR),

(iii) Construction Supervision Consultants (CSC) funded by INDII for Palembang (to be available via a separate TOR),

(iv) Capacity Development Technical Assistance (CDTA) funded by ADB for the cities of Cimahi, Makassar, Jambi, Pekanbaru and Palembang, AMDALs to be funded by INDII for Cimahi and Palembang, AMDALs to be funded by CITY/GoI for Jambi and Pekanbaru

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Annex C

B. Scope of Services

4. The ADB and Government of Indonesia (GoI) now wish to procure the services of a reputable consulting firm to provide project implementation support for the MSMIP in Cimahi, Jambi, Makassar and Pekanbaru. The PISC‟s services are required to support the Central Project Management Unit (CPMU), Provincial Project Implementation Units (PPIUs) and Local Project Management Units (LPMUs) in the following six main services:

a) Project Management and Coordination; b) Project Performance Monitoring; c) Reporting and Design; d) Procurement and Contracting; e) Construction Supervision; and f) Social Development and Safeguards Compliance.

5. The consulting firm will work in close coordination with government officials particularly the (i) Provincial Project Implementation Units (PPIUs), the (ii) LPMU (City Local Project Management Unit), and the (iii) proposed UPTDs (Regional Technical Implementation Unit). 6. The objective of the Project Management and Coordination Services is to support the management, supervision, and monitoring of the MSMIP, while specific tasks will include:

a) Maintain a master schedule of all MSMIP activities and monitor performance against progress, identifying problem areas and working with the CPMU, PPIUs and LPMUs to solve these problems;

b) Coordinate the activities of the stakeholder committees that are under construction during the project life, particularly with regard to the community-based sanitation

c) Element of the Project; d) Ensure compliance with quality and best practices of consultancy

services and physical works executed by contractors; e) Coordinate activities of consultants working for MSMIP to ensure

optimal and f) Effective utilization of resources; and g) Ensure compliance with all relevant ADB and GOI policies and guidelines,

should there be any differences between these guidelines, mutual agreement shall be taken.

7. The objective of the Project Performance Monitoring Services is to ensure that the Project is implemented and managed effectively and that benefits of the project are optimized. Monitoring and evaluation of project benefits will likewise be included as part of the CDTA. The PISC will further these activities, including development and implementation of a PPMS, conduct of a baseline study, and setting-up of all institutional requirements in

52

Annex C

order to be able to monitor and evaluate project benefits after its completion. The PPMS will include parameters relevant to the PISC, including (i) number of people benefiting from the Project and (ii) the number of sewer connections over time, amongst others. 8. The Consultants specific tasks will include:

a) Update baseline data for areas benefiting from the Project works; b) Update the data on completion of the works and quantify the benefits; and c) Monitor compliance with the loan covenants using the PPMS.

9. The objective of the Reporting and Design Services is to assist the CPMU, PPMUs, and LPMUs with the monitoring and reporting of the MSMHP contracts and to review, revise and prepare designs, while specific tasks shall include:

1. Reporting Services a) Monitor the progress of the activities including problems and financial

performance of the Project and report to the CPMU; b) Prepare periodic reports, such as progress and financial reports, to the

CPMU and ADB; c) Prepare revised detailed engineering designs and bidding documents for

the Works

2. Design Services a) Review, check and revise when required the existing detailed designs

and bidding documents for the Works; b) The responsibility of PISC is a Task Concept Services

10. The objective of the Procurement and Contracting Support Services is to assist the PPIUs, LPMUs, and the procurement committees with the bidding, evaluation and award of the MSMIP contracts for the supply of goods and the execution of Civil Works, while specific tasks shall include:

a. Advise on all procurement-related matters; b. Assist during Pre-qualification of bidders; c. Assist during answers to bidders questions about the bids at Pre-Bid Meeting; d. Assist during evaluation of bids, including inspection of bidders facilities and

equipment; e. Advise during any clarifications and/or negotiations; and f. Establish, and keep updated, a MSMIP web-site that shows the contract

packages and implementation plan and which discloses the use of the Loan proceeds, including, within one (1) week of award, details of each contract.

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Annex C

11. The objective of the Construction Supervision is to assist the and PPIUs and LPIUs with the management, supervision, and monitoring of each of the awarded contracts, while specific tasks will include:

a. Examine and approve for payment each contractors works under PPIU (relevant to MSMIP), to ensure that these facilities conform to the agreed contract documents;

b. Assess the adequacy of materials, equipment and labor provided by each contractor, each contractor’s methods of work, and rate of progress and, when required, recommend appropriate action to the PPIUs, and LPIUs to expedite progress;

c. Inspect and test construction materials, evaluate any test results conducted by contractors and validate the quality and quantity of all construction materials;

d. Examine all implementation plans and working drawings prepared by each contractor;

e. Examine the Works to ensure that these are carried out according to the contract documents;

f. Provide general guidance to each contractor as may be necessary to ensure that the Works are carried out according to schedule and within the terms of the contract;

g. Supervise all field investigations as conducted by contractors; h. Inspect all working areas and installations during the execution of all Works,

with particular attention to the Health & Safety (in accordance with K3 guidelines) of both the project personnel and public, and ensure that traffic management measures are properly implemented;

i. Examine each contractor’s setting out of the works with particular regard to gravity pipeline slopes and materials used therein;

j. Examine each contractor’s use of fill at the WWTP sites with particular regard to quality and the final height of the site to ensure safety from a 1-in-25 year flooding (i.e. a level that would occur statistically/every 1 in25 years/ chance of occurance for 25 years or other standard/guideline as appropriate);

k. Ensure each contractor’s adherence to the detailed designs, including comparing against drawings and documentation:

l. Measure and compute quantities of Works and materials, which have been accepted and approved, and examine and certify each contractor’s payment requests;

m. Report monthly on the progress of all Works, each contractor’s performance, quality of work, and each contract’s financial status and projections;

n. Ascertain and agree with each contractor all work measurements and review, and recommend, claims for payment, and certify these to the PPIUs and LPIUs as being correct and within the terms of the contract;

o. Advise the LPMU on any detrimental environmental impacts of all Works and make recommendations to mitigate them;

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Annex C

p. Review contractor’s documents and recommend appropriate action to the PPIU and LPIU, as necessary: periodic progress reports, quality-testing results, requests for variation, each contractor’s claims, and each contractor’s invoices;

q. Carry out an inspection upon completion of each section of all Works, recommend any maintenance requirements during, and before the end of, the defect liability period;

r. Ensure that “as-built” drawings are prepared for all Works as construction progresses (hard copy and soft copy in AutoCAD) and that Operation and Maintenance Manuals, including full technical specifications, are prepared for all equipments and other items as per the relevant contract;

s. Support all officials in charge of public relations for socialization purposes and support all officials in carrying out public campaign which includes direct interface, brochure and leaflet distribution, poster, periodicals/bulletins, mass media such as newspaper, television, and radio;

t. Promote recognition by the public of the project especially in preparation of publicity materials and display panels.

12. The objective of the Social Development and Safeguards Compliance Services is to assist the CPMU, PPMUs and LPMUs in ensuring that all project activities comply with ADB’s policies on social inclusion and Social and Environmental Safeguards and comply with the ADB’s Safeguard Policy Statement and its requirements, and comply with GoI Regulations while specific tasks will include:

a) Prepare specific reports, with special regard to environmental and social development activities, and submit copies to ADB, CPMU, PPMU and LPMU;

b) In the event that any involuntary resettlement is required (if the DED did not cover it) prepare a Resettlement Plan and assist the LPMUs to satisfy the requirements of the Resettlement Framework, and

c) Monitor and prepare reports to ADB and CPMU on the status of environmental management plan implementation.

13. In addition to the activities and tasks detailed above, the Project Implementation Support Consultant will coordinate and cooperate with the reasonable requirements of the Capacity Development Technical Assistance Consultant providing the community-based sanitation, institutional development and capacity building services. 14. The Consultant will be responsible for the provision of all necessary technical and administrative supporting staff, logistics and transport required to perform the services. The Consultant shall provide office accommodation for the Central Support Team in Jakarta and site offices in each city for the Provincial and Local Support Teams. All furnishings and equipment, telecommunications and running costs shall be met by the Consultant.

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Annex C

15. The Consultant shall rent on all equipment and vehicle necessary for the successful execution of the services in accordance with MPW guidelines. 16. The Consultant shall give due attention to the transfer of knowledge to the national professional staff and counterparts. The consultant shall provide education and training as may be requested, including but not limited to:

a) On the job training for national engineers, technicians and counterparts; b) Lectures about specific problems associated with the Works; c) Presentations whenever a person in authority or specialist visits the Works; d) Discussion meetings with DGHS, engineers and counterparts periodically and

intensively e) Overseas training includes lecture and practice on the engineering aspects of

the similar projects covering the planning, designing, and construction supervision method and the observation visit to similar project sites.

C. Expertise Required

17. The PISC shall execute all tasks in a single assignment. A Central Support Team shall be based in Jakarta with separate Provincial and Local Support Teams in Cimahi, Jambi, Makassar and Pekanbaru. The following paragraphs broadly describe the likely expertise required. However, bidders may propose alternative or additional inputs in their proposals provided that they remain within the overall budget allocated. 18. The PISC Central Support Team in Jakarta shall include the following professional and support personnel for the estimated inputs (person months)shown:

Team Leader /wastewater specialist (International) 16 pm intermittent Deputy Team Leader (National) 48 pm continuous Mechanical Engineer (National) 3 pm intermittent

Electrical Engineer (National) 3 pm intermittent Wastewater Process/Mechanical Engineer/ (International) 6 pm intermittent

Civil Engineer, Sewerage (International) 4 pm intermittent Civil Structural Engineer (International) 3 pm intermittent

Procurement and Contract Specialist (International) 3 pm intermittent Procurement and Contract Specialist (National) 6 pm intermittent

QA / QC Specialist (International) 3 pm intermittent Gender / Social Development Specialist (international) 4 pm intermittent

Environmental Specialist (International) 2 pm continuous Social Safeguards/Resettlement Specialist (International) 4 pm intermittent

Benefit and Monitoring Specialist (International) 4 pm intermittent Financial Management Specialist (National) 48 pm continuous

MIS Specialist (National) 48 pm continuous Gender and Social Development Specialist (National) 4 pm intermittent

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19. The PISC City works Supervision Team in Cimahi shall include the following professional and sub-professional support personnel for construction supervision for the estimated inputs (person-months) shown: Professional Personnel:

City Office Leader-Sewerage Const. Sprvsr. (Intrnl.) 36 pm intermittent Construction Supervisor – WWTP (National) 38 pm continuous Civil Structural Engineer (National) 18 pm intermittent

Civil Engineer Sewerage (National) 12 pm intermittent Geotechnical Specialist (National) 4 pm intermittent

Mechanical and Electrical Engineer (National) 5 pm intermittent Environmental Specialist (National) 6 pm intermittent

Public Relations/San. Marketing Specialists (2 Nat.) 18 pm intermittent Health & Safety Coordinator (National) 38 pm intermittent

Accounting Specialist (National) 38 pm intermittent Gender and Social Development Specialist (National) 4 pm intermittent Social Safeguards/Resettlement Specialist (National) 6 pm intermittent

Benefit and Monitoring Specialist (National) 4 pm intermittent Cost Estimator (National) 2 pm intermittent

Sub-Professional Support Personnel:

Drafting Support – (National) 24 pm intermittent GIS Specialist Support (National) 6 pm intermittent

Surveyor Support (National) 12 pm intermittent Field Supervisor (National) 228 pm continuous

20. The PISC City works Supervision Team in Makassar shall include the following professional and sub-professional support personnel for construction supervision for the estimated inputs (person months) shown: Professional Personnel:

City Office Leader-Sewerage Const. Sprvsr. (Intrnl.) 36 pm intermittent Construction Supervisor – WWTP (National) 38 pm intermittent Civil Structural Engineer (National) 12 pm intermittent

Civil Engineer Sewerage (National) 12 pm intermittent Geotechnical Specialist (National) 3 pm intermittent Mechanical and Electrical Engineer (National) 5 pm intermittent

Environmental Specialist (National) 6 pm intermittent Public Relations/San. Marketing Specialists (2 Nat.) 18 pm intermittent

Health & Safety Coordinator (National) 38 pm intermittent Accounting Specialist (National) 38 pm intermittent

Gender and Social Development Specialist (National) 4 pm intermittent Social Safeguards/Resettlement Specialist (National) 6 pm intermittent

Benefit and Monitoring Specialist (National) 4 pm intermittent Cost Estimator (National) 2 pm intermittent

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Sub-Professional Support Personnel: Drafting Support – (National) 24 pm intermittent

GIS Specialist Support (National) 6 pm intermittent Surveyor Support (National) 12 pm intermittent

Field Supervisor (National) 228 pm continuous 21. The PISC City works Supervision Team in Jambi shall include the following professional and sub-professional support personnel for construction supervision (two positions, so tagged “*”, are to review, check, and revise City DED designs only) for the estimated inputs (person months) shown: Professional Personnel:

City Office Leader-Sewerage Const. Sprvsr. (Intrnl.) 36 pm intermittent Construction Supervisor – WWTP (National) 38 pm intermittent Civil Structural Engineer (National) 12 pm intermittent

Civil Engineer Sewerage (National) 12 pm intermittent Geotechnical Specialist (National) 3 pm intermittent Mechanical and Electrical Engineer (National) 5 pm intermittent

Environmental Specialist (National) 6 pm intermittent Public Relations/San. Marketing Specialists (2 Nat.) 18 pm intermittent

Health & Safety Coordinator (National) 38 pm intermittent Accounting Specialist (National) 38 pm intermittent

Gender and Social Development Specialist (National) 4 pm intermittent Social Safeguards/Resettlement Specialist (National) 6 pm intermittent

Benefit and Monitoring Specialist (National) 4 pm intermittent Cost Estimator (National) 2 pm intermittent

Sub-Professional Support Personnel:

Drafting Support – (National) 24 pm intermittent GIS Specialist Support (National) 6 pm intermittent

Surveyor Support (National) 12 pm intermittent Field Supervisor (National) 228 pm continuous

*Sewerage Design Engineer (International) 4 pm continuous 22. The PISC City works Supervision Team in Pekanbaru shall include the following professional and sub-professional support personnel for construction supervision (two positions, so tagged “*”, are to review, check, and revise City DED designs only) for the estimated inputs (person months) shown:

Professional personnel: City Office Leader-Sewerage Const. Sprvsr. (Intrnl.) 36 pm intermittent

Construction Supervisor – WWTP (National) 38 pm intermittent Civil Structural Engineer (National) 12 pm intermittent

Civil Engineer Sewerage (National) 12 pm intermittent Geotechnical Specialist (National) 3 pm intermittent Mechanical and Electrical Engineer (National) 5 pm intermittent

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Environmental Specialist (National) 6 pm intermittent Public Relations/San. Marketing Specialists (2 Nat.) 18 pm intermittent Health & Safety Coordinator (National) 38 pm intermittent

Accounting Specialist (National) 38 pm intermittent Gender and Social Development Specialist (National) 4 pm intermittent

Social Safeguards/Resettlement Specialist (National) 6 pm intermittent Benefit and Monitoring Specialist (National) 4 pm intermittent

Cost Estimator (National) 2 pm intermittent *Sewerage Design Engineer (International) 4 pm continuous

Sub-Professional Support Personnel: Drafting Support – (National) 24 pm intermittent

GIS Specialist Support (National) 6 pm intermittent Surveyor Support (National) 12 pm intermittent

Field Supervisor (National) 228 pm continuous

23. Professional personnel for the PISC shall be fluent in the English language (spoken and written) with qualifying university degrees and minimum relevant experience. Having knowledge of Bahasa Indonesian for International Professional would be advantageous. 24. The international Team Leader (and wastewater specialist) shall be a senior Civil Engineer or Sanitary Engineer or Environmental Engineer or Sewerage Engineer and will be responsible for the overall performance of the assignment. She/he shall have at least bachelor degree and preferably has a master degree. She/he should have a minimum of 20 years of relevant professional experience since graduation and have at least 10 years experience in the supervision of civil engineering works, including sewerage installation and wastewater treatment plant construction, preferably in Indonesia or similar developing countries She/he should be familiar with ADB/World Bank or other donors’ regulations and safeguards. She/he should have experiences as Team Leader for multiple projects of a similar nature to this assignment for at least 10 years. She/he shall have strong interpersonal and communication skills and have proven ability in report writing for professional purposes. 25. The international Wastewater Process/Mechanical Engineer (1 required) should have a minimum of 15 years of relevant professional experience since graduation. She/he should have a professional qualification in mechanical or chemical engineering (or an environmental engineer with verifiable mechanical experience) and have at least 10 years experience in equipment, piping and process control in sewage treatment and pumping. 26. The international Civil Engineer, Sewerage Specialist (1 required) should have a professional qualification in civil engineering, have at least bachelor degree, and have at least 10 years of relevant experience. She/he preferably has experience with the design and installation of sewerage systems, including gravity rising and ring mains, trunks, pressure mains, laterals and the use of interceptors for capturing sewage from dry weather flows from stormwater drains. This includes treatment of nominated drain flows before the interceptor(s) for removal of rubbish that would foul interceptor(s) to allow the mostly sewage for

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conveyance to a treatment plant. She/he will be familiar with software for designing sewer networks such as Sewer CAD or equivalent. Experience with the dewatering and use of low lying sites and those next to a river would be highly desirable. 27. The international Civil Structural Engineer (1 required) is to be experienced with the design and installation of sewerage systems as well as possess experience in structural analysis and design of water retaining structures. She/he should also have experience in rising/ring mains, trunks, and laterals. She/he will be familiar with software for designing sewer networks such as Sewer CAD or equivalent. Experience with the dewatering and use of low lying sites and those next to a river would be highly desirable. She/he should have a professional qualification in civil engineering, hold a bachelor degree, and have at least 10 years of relevant experience. 28. The international Procurement and Contract Specialist (1 required) should be a senior level engineer and at least hold a bachelor degree and preferably 15 years of experience since graduation. Background should include Project and Contract Administration, Evaluation of Extension of Time & Cost Claims, and familiarity and experience with the Federation International Des Ingenieurs Conseils (FIDIC) based contract documents, preferably in at least three projects of a similar nature and magnitude. Relevant experience in developing countries, preferably in Southeast Asia. She/he should have strong knowledge of relevant multilateral donor agency guidelines (preferably ADB’s guidelines) and relevant GOI’s regulations. 29. The international QA / QC Engineer (1 required) shall have at least a Bachelor Degree in Civil Engineering and should have a minimum of 15 years of relevant experience. It is desirable that previous quality assignments would have involved the laying of pipe/sewerage, water/wastewater treatment works or related areas. Experience in a developing country context will be highly regarded. 30. The international Gender and Social Development Specialist (1 required) shall have at least master degree in Social Science with specialized experience in developing and implementing technical assistance projects in gender and social development to promote awareness and strengthen capacity for gender mainstreaming, community mobilization, partnership building as well as addressing social development and protection matters in project implementation for at least 10 years. She/he will strengthen the MSMIP’s operations in these areas and in its relevance in contributing to poverty reduction and inclusive growth. Experience in a developing country context will be highly regarded. The candidate should possess good communication (oral and written), interpersonal and teamwork skills. 31. The international Environmental Specialist shall have at least master degree and have a professional qualification in environmental engineering/science and should have a minimum of 10 years of relevant experience in a developing country context. Familiarity is required with Indonesian environmental regulations and procedures and ADB’s 2009 Safeguard

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Policy Statement (SPS) and its requirements. Experience with EIA/EIS procedures in particular Indonesia’s AMDAL process is a must. 32. The international Social Safeguards / Resettlement Specialist shall have Master degree in Social Science and at least 10 years experience with international social and resettlement activities. She/He shall have excellent technical knowledge in the detailed processes of resettlement from a variety of Asian contexts as well as knowledge of Indonesian land laws and regulations and procedures and ADB‟s 2009 Safeguard Policy Statement (SPS) and its requirements. Excellent knowledge of relevant standards and legislation applicable to Indonesia is highly desirable. A general appreciation of Specifications and Conditions of Contract would be highly regarded. Commitment and demonstrated capacity to undertake activities in a consultative manner, ensuring active participation is desired. Competence with a range of computer software programs, including Word, Excel and Power-Point is necessary. The candidate should possess good communication (oral and written), interpersonal and teamwork skills. 33. The international Benefit Monitoring and Evaluation Specialist shall have at least a bachelor degree and have at least 10 years experience in the development and implementation of a Project Performance Monitoring System including the conduct of a baseline study and setting up of all institutional requirements in order to be able monitor and evaluate the benefits of the projects in all four (4) cities during and after their completion. She/he preferably has experience in working with loan-funded project. 34. The international Sewerage Design Engineer shall have at least a bachelor degree and have at least 15 years experience in detailed engineering design for sewerage systems. 35. The National professional personnel in the PISC shall have qualifying university degrees, be fluent in the speaking and writing the English language, and have the following minimum relevant experience: CORE TEAM – JAKARTA 36. The national Deputy Team Leader (1 required) shall be a senior Civil or Sanitary Engineer and will be jointly responsible (with the Team Leader) for the overall performance of the assignment. The duties of the position will require deputation for the Team Leader during non-resident periods. During these deputation periods, many of the duties of the Team Leader will become the responsibility of the Deputy Team Leader, as will be agreed and monitored with/by the Team Leader. 37. She/he should have a minimum of 15 years of relevant professional experience since graduation and have a professional qualification in civil/sanitary engineering. She/he should preferably have at least 10 years experience in the supervision of civil engineering works. Relevant experience that includes pipeline installation and water/wastewater treatment plants would be highly desirable.

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38. The national Mechanical (1 required) should have a minimum of 10 years of relevant professional experience since graduation. She/he should be university gradute, hold a bachelor degree, and have a professional qualification in mechanical engineering (or an engineer with verifiable mechanical experience) and have at least 8 years experience in equipment, piping and process control in treatment plants and pumping. 39. The national Electrical Engineer (1 required) should have a minimum of 10 years of relevant professional experience since graduation. She/he should be university graduate, hold a bachelor, and have a professional qualification in electrical / control engineering and have at least 8 years of relevant experience with high voltage and three-phase power, pumping stations, process control instrumentation and equipment used in treatment plants. 40. The national Procurement and Contract Specialist (1 required) shall have a degree in Civil Engineering and at least 10 years experience in preparing procurement documents. She/he should familiar with ADB/World Bank and other donors‟ procurement guidelines and regulations. She/he should also familiar with Presidential Regulation number 54 of 2010 and Presidential Regulation No. 70 of 2012. 41. The national MIS Specialist / Web Designer (1 required) shall have at least a master degree in Information Technology and should have a minimum of 10 years experience in establishing and running Management Information Systems. She/he should have experience of implementing MIS with multiple stakeholders, in-house training database, information system operators and have experience with design and maintenance of web sites. 42. The national Gender and Social Development Specialist (1 required) shall have a Master's Degree, or equivalent, in Social Science and have at least 10 years of relevant experience. Specialized experience in developing and implementing technical assistance projects in gender and social development to promote awareness and strengthen capacity for gender mainstreaming, community mobilization, partnership building as well as addressing social development and protection matters in project implementation is required. She/he will strengthen the MSMIP‟s operations in these areas and in its relevance in contributing to poverty reduction and inclusive growth. 43. The national Financial Management Specialist (1 required) shall have bachelor degree and 10 years of relevant experience, preferably experience in working for loan-funded project. 44. She/he will design and monitor the financial management system acceptable to DGHS and the ADB and prepare Project financial reports. She/he will establish a sound accounting practice and system to manage the resources available to the Project.

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CITY TEAMS – CIMAHI, JAMBI, MAKASSAR & PEKANBARU Engineering 45. The international City Office Leaders & Sewerage Construction Supervisions (4 required) shall have a minimum of 15 years of relevant professional experience since graduation, and have a bachelor degree in civil / sanitary /environmental engineering. She/he should preferably have at least 10 years experience in the supervision and reported auditing of civil engineering works, specifically pipeline installation. It will also be advantageous if the candidate has previously worked as an Engineer‟s Representative, and/or has experience in sewer construction and pipe jacking. 46. The national Construction Supervisors - WWTP (4 required) shall have at least bachelor degree in civil/environmental/sanitary engineering with a minimum of 10 years of relevant professional experience since graduation. Specific experience with the design/construction of water retaining structures such as those at wastewater or water treatment plants is highly desirable as would be experience in the construction of earthen lagoons (ponds). Experience with low lying sites would be considered favorably. 47. The national Civil Structural Engineers (4 required) shall be experienced with the design and installation of buried piping / sewerage systems as well as possess experience in structural analysis and design of water retaining structures. She/he should have a professional qualification in civil engineering and have at least 10 years of relevant professional experience since graduation. 48. The national Civil Engineer, Sewerage Specialists (4 required) are to be experienced with the design and installation of sewerage and/or piping systems, including rising/ring mains, trunks, laterals and the use of interceptors for capturing relevant stormwater flows. Experience and familiarity with software for designing sewer networks such as SewerCAD or equivalent would be highly regarded as would experience with the dewatering and use of low lying sites and those next to a river. /sanitary. She/he should have a professional qualification in civil/environmental engineering and should have a minimum of 10 years of relevant professional experience since graduation. 49. The national Geotechnical Specialist (4 required) should have at least a bachelor degree in geological engineering with a minimum of 10 years of relevant professional experience since graduation. She/he should have a professional qualification in geotechnical engineering and have previous experience of deep trench construction in sandy soils below groundwater level. Past experience with water retaining structures in low lying sites and those next to rivers would be highly desirable. 50. The national Mechanical and Electrical Engineers (4 required) should have a bachelor degree in mechanical engineering with a minimum of 10 years of relevant professional experience since graduation. She/he should have a professional qualification in mechanical

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engineering and have previous experience in pump stations, sewage / water treatment equipment or similar. She/he should have strong knowledge in electrics related to pump stations, wastewater/water treatment equipment (or similar) and automation/control. 51. The national Environmental Specialists (4 required) should have environmental engineering / environmental science degree with a minimum of 10 years of relevant professional experience since graduation. She/he should have a professional qualification in environmental engineering/science and must be familiar with Indonesian environmental law and procedures and ADB‟s 2009 Safeguard Policy Statement (SPS) and its requirements. She/he shall have experience in the Indonesian environmental assessment system, Analisa Mengenai Dampak Lingkungan (AMDAL) and in conduct of public consultations on environmental impact of projects. The candidate should possess good communication (oral and written), interpersonal and teamwork skills. 52. The international *Sewerage Design Engineers (2 required) is to be a civil or hydraulic or environmental engineer and have 10 years of experience with the design and installation of sewerage systems, including gravity rising and ring mains, trunks, pressure mains and laterals. She/he shall be familiar with software for designing sewer networks such as SewerCAD or equivalent to subject the City DED design (for Jambi or Pekanbaru) for such a model. The candidate for Pekanbaru should also be able to validate the hydraulic design used for drain interceptors for capturing sewage from dry weather flows from stormwater drains. Other Professionals 53. The national Public Relations and Sanitation Marketing Specialists (2 per office, total of 8 required) should have at least bachelor degree with a minimum of 10 years of relevant professional experience since graduation. She/he should be a good communicator able to communicate with government officials, stakeholder representatives and NGOs. It will also be advantageous if the candidate has previous experience in some of the following: social marketing, public relations, human resources management, design and delivery of information campaigns and facilitating participatory planning. She/he shall ensure that processes are in place to support a mass sewerage connection campaign and that communication materials and skills are developed within MSMIP to promote sustained behavior change in hygiene and sanitation practices. 54. The national Health & Safety Coordinators (4 required) shall have at least bachelor degree in civil or environmental engineering or public health science with a minimum of 10 years of relevant professional experience since graduation, and should have at least five years experience in Health & Safety on civil engineering site works, in particular on the stability, safety of trench excavations and construction of / working around water retaining structures.

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55. The national Accounting Specialists (4 required) shall have a bachelor degree in accounting or other relevant major and be professionally qualified as financial book keepers with not less than 10 years professional experience in current accounting standards and procedures and design and development of accounting and budgeting systems for public enterprises. She/he will liaise extensively with the project Financial Management Specialist in Jakarta to supply all relevant financial receipts and transactions for monthly reporting. 56. The national Gender and Social Development Specialists (4 required) shall have a Master's Degree, or equivalent, in Social Science and have at least 8 years of experience since graduation. Specialized experience in developing and implementing technical assistance projects in gender and social development to promote awareness and strengthen capacity for gender mainstreaming, community mobilization, partnership building as well as addressing social development and protection matters in project implementation is required. 57. The national Social Safeguards / Resettlement Specialists (4 required) should have a bachelor degree in Social Science or other relevant major with a minimum of 10 years of relevant professional experience since graduation. He/she should have a professional qualification in and must be familiar with Indonesian land laws and regulations and procedures and ADB‟s 2009 Safeguard Policy Statement (SPS) and its requirements. He/she shall have experience in the social impact assessments, detailed measurement surveys, implementing and monitoring resettlement and in conduct of public consultations. He/She should assist the international in updating and implementing the RP together with CPMU. The candidate should possess good communication (oral and written), interpersonal and teamwork skills. 58. The national Benefit Monitoring and Evaluation Specialists (4 required) shall have bachelor degree with at least 10 years experience in the development and implementation of a Project Performance Monitoring System, including the conduct of a baseline study and setting up of all institutional requirements in order to be able monitor and evaluate the benefits of the City project after its completion. Close liaison is required with the international Benefit Monitoring and Evaluation Specialist. She/he preferably has experience in working with loan-funded project. Sub-professional Engineering Support\ 59. The national Engineering Support /Drafting (4 required) shall have a minimum of 5 years of relevant professional experience since graduation, and be well versed in the use of design CAD software, particularly as it relates to piping layouts, water retaining structures and determination of quantities. She/he should be able to prepare detailed working drawings to international standards. The drawings should contain all the details required for successful execution of the project. 60. The national GIS Specialists (4 required) will preferably have a qualification in geography, IT or a related field but most importantly will be familiar with commonly used GIS

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software such as ArcInfo and MapInfo. She/he will have at least 5 years experience in developing GIS applications. Experience in mapping for pipe routes, sewerage and road infrastructure. She/he will be skilled at using GIS software as a strategic decision making tool for the development of optimum alignments. Skills to provide general local office IT support would be highly regarded. 61. The national Surveyors (4 required) shall have a minimum of 10 years of relevant professional experience since graduation, and should have at least 5 years experience in the setting out and measurement of civil engineering works, including pipeline installation and the use of low lying sites. The specialists is expected to have thorough understanding of modern computer based methods of surveying like total stations, use of satellite imagery, digital terrain model etc., as being practiced in project preparation. The candidates should possess good communication (oral and written), interpersonal and teamwork skills. 62. The PISC will be responsible for the provision of all necessary technical and administrative supporting staff, logistics and transport required to perform the services. The Consultant shall provide office accommodation for the Central Support Team in Jakarta, and site offices in Cimahi, Jambi, Makassar and Pekanbaru for the Provincial and Local Support Teams. All furnishings and equipment, telecommunications and running costs shall be met by the Consultant. 63. The PISC shall purchase on behalf of GoI all equipment necessary for the successful execution of the services in accordance with relevant Indonesian guidelines. Such equipment shall be the property of the government and shall be handed over to the government on completion of the services. 64. The PISC shall give due attention to the transfer of knowledge to the national professional staff and counterparts. The consultant shall provide education and training as may be requested, including but not limited to: • On the job training for national engineers, technicians and counterparts; • Lectures about specific problems associated with the Works; • Presentations whenever a person in authority or specialist visits the Works; • Hold discussion meetings with DGHS, engineers and counterparts periodically.

D. Reports and Deliverables

65. The PISC shall produce the following reports including review and revise design within the period indicated:

a) Inception Report (six weeks after commencement of services) The Inception Report will include the Consultant’s detailed Work Plan and Staffing Schedule updated from their Proposal, initial findings, status of all contract packages, difficulties encountered, problems to be resolved, guidance required and recommendations for accelerating progress of the project;

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b) Monthly Progress Reports (each calendar month) Brief Progress Reports shall be submitted to each PPMU (copied to CPMU) summarizing progress (physical and financial) achieved on all contract packages, difficulties encountered, and issues to be resolved, and should be submitted within two weeks of the end of each month;

c) Construction Supervision Reports as required for review missions. d) Quarterly Progress Reports (each three months) Based on the monthly progress

reports, Quarterly Progress Reports shall be prepared which detail physical and financial progress of all contracts, including the Consultants services, including records of the Consultant’s staff mobilization, invoices and payments for the services, and should be submitted within three weeks of the end of each quarter. The Quarterly Report shall also include the GAP progress monitoring.

e) Contract Completion Reports. A contract completion report shall be prepared for the PPMU within three months of the physical completion of each contract package which giving a summary of the whole period of the services.

f) Service Completion Report A final report on completion of the Consultant’s services to be submitted to the PPMUs, CPMU and ADB IRM within one month of completion of consultant inputs.

66. All reports shall be prepared in both English and Bahasa languages, in a format to be agreed with the CPMU. All reports shall be submitted to the CPMU in 15 hard copies (Completion Reports in 20 hard copies) and 3 soft copies on CD. Simultaneously 2 hard copies and 2 soft copies shall be submitted to ADB’s IRM. Soft copies shall be compiled into a single file in .PDF format and the CD shall also include the underlying files in .DOC .XLS .PPT .JPG or .DWG format as appropriate.

E. Data, Local Services, and Facilities to be provided by the Client

67. In accordance with the established government procedures and regulations, the PISC and any of its personnel (other than personnel who are citizens or permanent residents of the territory of Indonesia) are given the following privileges:

a) The consultant and its expatriate personnel shall be exempted from Corporation Income Tax and Value Added Tax (PPN) on services for the foreign currency portion of payment, as well as the local currency portion of payments originating of the proceeds of a loan.

b) Customs, duties and taxes, if any, imposed on any equipment and materials which the consultant will transfer to the Ministry of Public Works on completion of the services, shall be paid by the Ministry.

c) The PISC shall be responsible for payment of the following tax liabilities:

d) Value added tax on goods and services purchased domestically, at the prevailing rates;

e) Personal income tax for all personnel with respect to the work performed by them in Indonesia in connection with the contract in accordance with the current

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government regulations; Corporation tax at the rate of one and a half percent (1.5%) of all contract prices shall be provided by the Government from the local budget. This tax shall be added to the respective local payments; and Local taxes such as road taxes, registration fees on personal automobiles, etc. according to the prevailing regulations.

f) Should any governmental law, order, regulation and / or by law having the force of law in existence as of the date of the contract and/or those which may be enacted or promulgated thereafter, result in the imposition of other corporation and income tax, import duties, value added tax on imports and sales tax on the services of the consultant and its expatriate personnel, the Ministry shall notify the Consultant and the contract shall be amended accordingly in order that the said tax and duties shall be reimbursed to the consultant.

g) The Ministry shall issue all necessary permits and authorizations for carrying out the services.

68. The Ministry shall provide the PISC without cost:

a) All available documents, drawings, maps, statistical data and information related to the project and regional development plans in the project area and the result of any topographic surveys, geological surveys, soil mechanic surveys and laboratory tests prepared by the project.

b) Necessary full time professional and technical counterparts.

69. The Ministry shall make arrangements for the PISC‟s international personnel to be provided with the necessary visa, entry and exits permits, working permits and travel documents required for their stay in Indonesia. The consultant’s personnel must obtain their visas from an Indonesian consulate abroad before they travel to Indonesia.

F. Detailed Position Tasks Internationals

Team Leader (International) 70. The Team Leader will be recruited as an individual and will report to the MSMIP Project Manager. Specific tasks will include:

a) Recognize and plan for the successful implementation of the duties and responsibilities of the Team Leader position from an intermittent resident involvement over the four and a half (4.5) years of the project. This should include the efficient use of the continuous Deputy Team Leader in Jakarta.

b) Continual liaison, support and coordination with Cipta Karya (Directorate General Human Settlements) in the Ministry of Public Works, the CPMU (Central Project Management Unit), the PPMU (Provincial Project Management Units or SATKER), the LPMUs (Local Project Management Units), the POKJAs (City Technical Working Group), the proposed UPTDs (Regional Technical Implementation Unit, a sub-unit of a dinas or normal government agencies, established to undertake technical operations in a specified functional or geographical area), and ADB funded CDTA (Capacity Development Technical

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Assistance) Consultant and DED (Detailed Engineering Design) Consultant and the IndII PISC (Project Implementation Support Consultants);

c) Establish project organization and reporting lines and provide necessary orientation and training for the project staff, especially with regard to procedures for procurement of works, services and equipment under the Project;

d) Prepare all components of the Project and guide the city teams in preparing for and implementing the Project;

e) Prepare the LPMUs and the PPMUs for project organization and overall project implementation readiness;

f) Facilitate transition of CDTA activities to those of the PISC, including Project Benefit and Monitoring activities, DED reviews, procurement activities and others as appropriate;

g) Assist in ensuring that project accounting and regular reports are submitted as required for the Project;

h) Coordinate activities of consultants working for MSMIP to ensure optimal and effective utilization of resources;

i) Conduct project monitoring as agreed with ADB in the Project Performance Management System (PPMS) as well as ensure compliance with all relevant ADB policies and guidelines;

j) Maintain a master schedule of all MSMIP activities and monitor performance against progress, identifying problem areas and working with the CPMU, PPMUs and LPMUs to solve these problems;

k) Provide Overview of Construction Supervision to assist the CPMU, PPMUs and LPMUs with the management, supervision, and monitoring of each of the awarded contracts;

l) Ensure compliance with quality and best practices of consultancy services and physical works executed by contractors;

m) Ensure recheck, review and revise of DEDs, particularly those arising from Jambi and Pekanbaru;

n) Establish, and keep updated, a MSMIP web-site that shows the contract packages and implementation plan and which discloses the use of the Loan proceeds, including, within one (1) week of award, details of each contract;

o) Coordinate the activities of the stakeholder committees that are under construction during the project life, particularly with regard to the community-based sanitation elements of the Project;

p) Ensure equipment and services are procured for core team and city teams;

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q) Assist with implementation of the Project Gender Action Plan and Consultation and Participation Plan;

r) Assist with the monitoring of the implementation of Environmental Management Plans for all cities;

s) Oversee establishment of agreed institutional arrangements and policy requirements under the Project;

t) Facilitate overall coordination among relevant government ministries and entities to ensure successful implementation;

u) Establish quality assurance and control (QA and QC) procedures, and monitor QA and QC for each city throughout project implementation period;

v) Be responsible for budget, cost control and necessary reporting, and coordinate with the relevant ministries and the Project Steering Committee(s);

w) Ensure that unaudited annual project financial reports and all financial reports related to the project financing are prepared and in line with the prevailing procedures;

x) Ensure compliance with ADB‟s safeguard policies, including monitoring and reporting requirements;

y) Providing advice and guidance to the CPMU, PPMUs and LPMUs on ADB‟s procedures and guidelines for project implementation and management in general;

z) Oversee establishment of agreed institutional arrangements and policy requirements under the Project; and participate in ADB or IndII Program Review Missions; and bb. Other tasks as requested by the MSMIP Project Manager.

Civil Engineer, Sewerage / Drainage (International) 71. The position will be recruited as an individual and will report to the Team Leader. Specific tasks will be as follows:

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a) Close liaison with city specialists;

b) Provide assistance and overview to the city teams with respect to WWTP site drainage;

c) Provide assistance and overview to city teams with respect to the laying of sewerage

d) pipelines and with respect to hydraulics and embedding pipelines in various soil structures;

e) Overview of pipe routes, pipe slope gradients, materials of construction, pipe support materials, bedding and cover, concrete quality;

f) Provide assistance and overview to city teams (when necessary) with respect to the

g) use of interceptors (Cimahi and Pekanbaru) for collection of dry weather drainage that is mostly sewage for conveyance by pipeline to the WWTP. All drain interceptors shall be equipped with pre-trash racks (to prevent inceptor fouling) and subsequent rubbish management, preferably to a solid waste landfill. Ascertain to what extent the bypassing of wet weather flows is to be designed into the interceptors, e.g. 2 * ADWF (average dry weather flow) or other;

h) Assist with interpretation of the Technical Specifications for each subproject;

i) Provide peer review for national Sewerage Design Engineers in Jambi and Pekanbaru reviewing the DEDs of those cities, and

j) Other duties as requested by the Team Leader.

Civil Structural Engineer (International) 72. The position will be recruited as an individual and will report to the Team Leader. Specific tasks will be as follows:

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a) Close liaison with city specialists;

b) Provide assistance and overview (as necessary) to city teams for the construction of concrete water retaining structures and pump stations;

c) Provide assistance and overview (as necessary) to city teams for the construction of water retaining earthen lagoons for use as treatment systems;

d) Provide assistance and overview (as necessary) to city teams for the construction of building used both in sewerage and WWTP infrastructure;

e) Assist with interpretation of the Technical specifications for each subproject; and

f) Other duties as requested by the Team Leader.

Contract Specialist (International) 73. The position will be recruited as an individual and will report to the Team Leader. Specific tasks will be as follows:

a) Review procurement plan(s) of the CDTA;

b) Assist as opportunity arises in capacity building of the CPMU, PPIU and LPMU procurement personnel on the latest available ADB Procurement Guidelines, including Asian Development Bank Bid Data Sheet and the Asian Development Bank Special Conditions of Contract for both Procurement of Goods and Infrastructure Projects;

c) Assist in evaluating and processing all claims for additional payments or extensions of time submitted by the contractor(s);

d) Assist with any Dispute Adjudication proceedings and give firm opinion on any claim

e) which the Contractor(s) may put forward, by drawing up report including all the elements on which the judgment is based;

f) Update procurement plan as originally produced by the CDTA and when required, record and archive complaints on procurement, and advise the MSMIP, DGHS, and the ADB, and provide extensive training to national Procurement Specialist and other staff on all types of procurement of goods, works, and services in accordance with ADB Procurement Guidelines;

g) Assist the Team Leader/MSMIP PM in establishing efficient procedures for verifying Contractor(s) performance and reporting progress and problems in a timely manner, including quality control reports, quantity survey records, requests for variation or change orders, requests for time extension, and Contractor‟s claims and invoices; and

h) Other duties as requested by the Team Leader.

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Environmental Specialist (International) 74. The position will be recruited as an individual and will report to the Team Leader. Specific tasks will be as follows:

a) Liaise closely with city national Environmental Specialists;

b) Advise the selected local governments and implementing agencies (IAs) on ADB's Safeguard Policy (2009) requirements and procedures;

c) Revised and/or update, as may be necessary, the Environmental Management Plan (EMP) including the corresponding costs for environmental monitoring to ensure the environmental soundness and sustainability of the (sub) Project, and to support the integration of environmental considerations into the project design and decision- making process;

d) Ensure compliance with the GoIs environmental assessment requirements and other requirements;

e) Provide inputs on the integration of environment parameters (from IEEs and EMPs) in the overall project monitoring reports;

f) Ensure the adoption of environment health and safety guidelines (World Bank and IFC) in construction practices and civil works and ensure these are reflected in the EMPs;

g) Ensure design of wastewater treatment plants conforms to local and ADB guidelines for environmental protection, particularly protection of ground and surface waters; and

h) Guide the national consultant on all of the above aspects.

Gender and Social Development Specialist (International) 75. The position will be recruited as an individual and will report to the Team Leader. Specific tasks will be as follows:

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a) Prepare detailed plans, implement and monitor poverty reduction and social plans and GAP and identify corrective measures, when necessary, to ensure GAP and SPRSS outcomes;

b) She/he will maintain the desired level of gender awareness. The Gender and Social Development Consultant He shall develop and facilitate training of staff on Gender, social development and community facilitation strategies while ensuring that technical and management training courses have 50% female participants;

c) Strengthen pro-poor targeting strategies and capacity building on sanitation management for implementing agencies, communities and village governments on sanitation management;

d) Support MSMIP PPMS through identification and monitoring of sex-disaggregated indicators. Assess and ensure that mechanisms, processes and capacities are in place to expand orientation of sewerage service delivery as public service and to strengthen pro-poor targeting strategies and capacity building on sanitation management for implementing agencies, communities and village governments on sanitation management;

e) Help recruit female and male community mobilizers. Conduct gender training and strengthen community mobilization capacities of staff;

f) Assess the training needs of village structures and beneficiary women and men in sanitation coverage areas. Design and supervise community-level training for adequate technical and skills training on gender, livelihood development, hygiene and sanitation promotion for household and village governments; and

g) Other duties as requested by the Team Leader.

Geotechnical Engineer (International) 76. The position will be recruited as an individual and will report to the Team Leader. Specific tasks will be as follows:

a) Liaise closely with city personnel;

b) Gathering and overview geotechnical data for each WWTP site as well as that available for sewerage;

c) Gathering and overview geotechnical data on subsoil condition, geotechnical profile and laboratory test results;

d) Order geotechnical testing as is needed;

e) Review remediation strategies of the contractors for poor sites for the works proposed thereon/therein for both sewerage and WWTP construction; and

f) Other duties as requested by the Team Leader.

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Wastewater Treatment Process/Mechanical Engineer (International) 77. The Wastewater Treatment Process/Mechanical Engineer will be recruited as an individual and will report to the Team Leader. Specific tasks shall include:

a) Close liaison with other specialists;

b) Review of detailed process designs from DED consultants for each of the cities;

c) Suggest changes to processes as is appropriate;

d) Provide assistance to contractors as appropriate;

e) Provide advice with respect to sanitation activities as required;

f) Provide assistance with process commissioning of each of the WWTPs;

g) Provide peer review for national Wastewater Treatment Process Engineers in Jambi and Pekanbaru reviewing the DEDs of those cities, and

h) Close liaison with city mechanical engineers;

i) Monitoring of SPS (sewage pump station) equipment being put forth by the contractor(s) for quality, suitability of purpose and compliance with specifications;

j) Monitoring of equipment being put forth by the contractor(s) for quality, suitability of purpose and compliance with specifications for use in the WWTPs;

k) Provision of mechanical technical assistance as requested;

l) Assist with interpretation of the Technical specifications for each subproject; and

m) Other duties as requested by the Team Leader.

Public Relations/Sanitation Marketing Specialist (International) 78. The position will be recruited as an individual and will report to the Team Leader. Specific tasks will be as follows:

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a) Firm up in collaboration with Gender and Social Development Specialists a marketing and communication strategy to achieve universal coverage in target sites;

b) Prepare strategy and tools to ensure that all are reached for sanitation connection and that messages are refined for effective communication with specific stakeholders such as those in sanitation hot spots, open defecators, and low income sectors including vulnerable groups, commercial sector, etc. by incorporating lessons and resources developed by such programs such as the CDTA MSHMP in its Sewerage project in Jogjakarta;

c) Facilitate planning for collaborative action sanitation promotion through workshops for City/village Sanitation and Hygiene Marketing Plans and establishment of mechanisms to implement action plans to ensure sustained behavior change on sanitation from a marketing and policy perspective;

d) Document and share people-centered-approach for hygiene and sanitation outreach campaign with appropriate products for MSMIP subgroups such as poor, open defecators, etc.;

e) Promote capacity building on sanitation marketing - develop and implement orientation modules on key marketing and communication strategies and tools to ensure effective coordination and buy-in of partners and stakeholders;

f) Assess and ensure that mechanisms, processes and capacities are in place to expand orientation of sewerage service delivery as public service;

g) Provide advice/training to MSMIP, partners, local governments and communities on sanitation and hygiene communication strategy; recommend ways to firm up behavior change from a marketing and policy perspective;

h) Developing in-house magazines, case studies, speeches, articles and annual reports as is necessary; and

i) Other duties as requested by the Team Leader.

Quality Assurance (QA) / Quality Control (QC) Specialist (International) 79. The position will be recruited as an individual and will report to the Team Leader. Specific tasks will be as follows:

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a) Liaise with city Construction Supervision Consultants (sewerage and WWTP);

b) Monitor and verify quality control of the works carried out under the Project;

c) Immediately inform the Team Leader of problems related to the quality and quantity of materials and works and to any instances of non-conformance of the Contractor works with the technical specifications and/or the safeguard requirements;

d) Monitor and verify adequacy of the Contractors procedures for material testing in accordance with procedures specified in the Specifications;

e) Monitor and verify Contractors sources of construction materials and proposed

f) Materials to ensure that all materials used in the execution of the Project fully meet the specifications requirements; verify the specification of the proposed materials;

g) Monitor and verify Contractors proposed material, specification, drawings, and ensuring the compliance with the specifications in every respect;

h) Monitor and verify Contractors trial works (if any) to ensure that all works, proposed material and method are correct and fully meet the specifications;

i) Monitor and verify any modifications to the Contractor's activities relating to the inappropriate material or method that may be used throughout the period of maintenance works;

j) Assist the Team Leader in preparation of the reports with regard to the quantity and quality aspects in accordance with the contract;

k) Monitor to ensure that all environmental and social requirements are met; and

l) Other duties as requested by the Team Leader.

Social Safeguards / Resettlement Specialist (International) 80. The position will be recruited as an individual and will report to the Team Leader. Specific tasks will be as follows:

a) Close liaison with city specialists and the provision of adequate training to the City staff as is necessary for efficient operation;

b) Review specific reports, with special regard to environmental development and safeguard activities, gender mainstreaming, poverty reduction, stakeholder communication, beneficiary participation, and social development activities, and forward copies to Team Leader for forwarding to ADB;

c) In the event that any involuntary resettlement is required (if the DED did not cover it) prepare in cooperation with the City(ies) Social Safeguards /

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Resettlement Specialist a Resettlement Plan and assist the PMUs to satisfy the requirements of the Resettlement Framework;

d) Monitor, and report to Team Leader for forwarding to ADB on the status of GAP, SPRSS, CPP, and SCS plan implementation;

e) Monitoring of Gender Action Plan progress to be included in implementation reviews, mid-term reviews and PCRs follow monitoring templates;

f) In the event that any challenges are met in implementation or off course, advise Team Leader for forwarding to ADB in timely manner and suggest corrective actions in consultation with EA/IA; and

g) Assist in the conduct of the information campaigns and public consultation;

h) Assist in the verification of census, inventory of losses and detailed measurement survey activities;

i) Check the accuracy of the AHs database prepared and provide improvements if necessary;

j) Prepare updated RPs;

k) Provide capacity training to CPMU on project policies, grievance redress procedure, public consultation process and effective RP implementation.

l) Assist and improve, if necessary, procedures for the coordination of resettlement and compensation activities;

m) Ensure that grievances are addressed promptly and properly;

n) Establish and implement liaison mechanisms to ensure proper technical and logistical support to PPMU and CPMU, local administrative authorities, resettlement committees and concerned government departments;

o) Establish and implement procedures for ongoing internal monitoring;

p) Design and deliver capacity development activities for all relevant agencies, as needed,

q) Assist CPMU in preparing the internal monitoring reports.

r) Other duties as requested by the Team Leader.

Benefit Monitoring and Evaluation Specialist (international) 81. The Benefit Monitoring and Evaluation Specialist shall be recruited as an individual and will report to the Team Leader. Specific tasks shall include:

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a) Responsible for monitoring and evaluation of project benefits;

b) Develop and implement a Project Performance Monitoring System;

c) Conduct baseline study and set up all institutional requirements in order to be able monitor and evaluate the benefits of the project after its completion; and

d) Perform other duties as requested by the Team Leader.

*Sewerage Design Engineers (International) 82. The position will be recruited as an individual and shall report to the City Office Leader (Jambi or Pekanbaru) but also liaise closely with the project Team Leader / Deputy Team Leader. Specific tasks will be as follows:

a) Review and become familiar with the relevant City DED with respect to the intended design of the sewerage system, particularly those sections involving pump stations;

b) For Jambi: Close liaison with Jambi DED relevant team members responsible for sewerage design;

c) For Pekanbaru: Close liaison with Pekanbaru DED relevant team members for sewerage design;

d) Construct a hydraulic model of the proposed sewerage system (for Jambi or Pekanbaru), in SewerCAD (or equivalent) for DED design validation. Model is to include all stages of the proposed DED sewerage design for that city;

e) Provide specific design review report that includes every node of proposed sewerage system;

f) Seek peer review of conclusions and interaction/liaison with international Civil Engineer, Sewerage / Drainage;

g) For Pekanbaru: Verify hydraulic design of any drain interceptors to ensure that the wet weather bypass is within an acceptable multiple of the average dry weather flow,e.g. 2 * ADWF (or acceptable other) and that this conforms to the sewerage design; and

h) Report to City Office Leader and Deputy Team Leader of any issues that may hinder design review.

Design Wastewater Treatment Process Engineers (International) 83. The position will be recruited as an individual and shall report to the City Office Leader (Jambi or Pekanbaru) but also liaise closely with the project Team Leader / Deputy Team Leader. Specific tasks will be as follows:

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a) Review and become familiar with the relevant City DED with respect to the intended design of the wastewater treatment plant;

b) For Jambi: Close liaison with Jambi DED relevant team members responsible for wastewater treatment plant (lagoon) process design;

c) For Pekanbaru: Close liaison with Pekanbaru DED relevant team members for wastewater treatment plant (lagoon) process design;

d) Prepare a process design simulation of the proposed design with Biowin (or equivalent);

e) Provide specific design review report that includes comment on the DED proposed design, specifically on expected flow and wastewater quality, screening and degritting equipment and functionality, disposal of screenings and grit, use of anaerobic/anoxic/aerobic lagoons, sizes and depths of treatment lagoons, proposed biosolids wastage amounts, frequency of biosolids wastage, method of biosolids disposal, disinfection, odour control and expected discharge effluent quality;

f) Seek peer review of conclusions and interaction/liaison with international Wastewater Treatment Process Engineer; and

g) Report to City Office Leader and Deputy Team Leader of any issues that may hinder design review.

City Office Leaders (international) 84. The position will be recruited as an individual and will report to the Team Leader / Deputy Team Leader. Specific tasks will be as follows:

a) Prepare all components of the City Project and guide the city team in preparing and implementing the Project;

b) Act as Construction Supervisor for Clean Construction works related to sewerage:

(i) Daily overview of sewerage civil works by the contractor(s); (ii) Monitoring of materials of construction and equipment, including sampling

and testing as deemed necessary and reporting of these results to relevant international and national specialists.

(iii) Monitor sewerage/drainage construction progress and ensure quality an (iv) timelines of the deliverables / outputs; (v) Monitor the construction method by assessing the adequacy of the

contractor’s input materials, labor, environmental, safety, equipment and construction methods;

(vi) Record the work measurement and certify the contractor‟s interim and (vii) final bill of payment;

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(viii) Scrutinize the contractor’s detailed work program and guide Contractor in preparation of supervision schedule / work plan as necessary;

(ix) Measure, check and certify completed works; (x) Validate contractor(s) progress claims; (xi) Overview commissioning as well as defects liability period activities as

they apply; (xii) Monitor and report that the Project works are carried out in accordance

with ADB environmental, labor, safety, social and resettlement safeguards and policies;

(xiii) Prepare monthly project progress reports describing the physical progress of each subproject for use by the Team/Deputy Team Leader, highlighting impediments to the quality and progress of the works and remedial actions;

(xiv) Contribute inputs towards preparation of a City project completion report, in accordance with a schedule and terms of reference to be mutually agreed by MSMIP, CPMU and ADB;

(xv) Carry out necessary quality control activities and certify that the quality of works conforms to the specifications and drawings;

(xvi) Establish monitoring Quality assurance system to verify source of materials, equipment and certification;

(xvii) Assist third party inspections, as necessary, as decided by MSMIP, CPMU and/or ADB;

(xviii) Coordinate with the private contractors in clearing road-blocks and obtaining required clearances from various Government agencies during the construction and commissioning phase;

(xix) Inspect regularly the contractor's construction equipment, installations, housing, medical facilities, etc. and prepare inspection acts, and ensure that they are adequate and in accordance with the terms and conditions specified in the contract for the works. This should become part of the monthly report; and

(xx) Evaluate claims, disputes, extensions of time, and the like, including issuing variation orders list and quantity of additional works. Liaise with the international Contract Specialist as needed.

(xxi) Liaise with the Team Leader/Deputy Team Leader for establishment of City office, including equipment and personnel;

(xxii) Establish project organization and provide necessary orientation and training to the project staff, especially with regard to establishing procedures for procurement of works, services and equipment under the Project;

(xxiii) Conduct project monitoring to provide information for the Project Performance Management System (PPMS) and MSMIP web page as well as ensure compliance with all relevant ADB policies and guidelines;

(xxiv) Assist with the monitoring of the compliance with implementation of Environmental Management Plan;

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c) Ensure that all data for project accounting and regular reports are submitted to the Team Leader/Deputy Team Leader on time for reporting as required for the Project;

d) Establish quality assurance and control (QA and QC) procedures, and monitor QA and QC for the city of concern throughout project implementation period; and

e) Other duties as requested by the Team Leader/Deputy Team Leader.

Nationals Deputy Team Leader (National) 85. The position will be recruited as an individual and will report to the Team Leader. Specific tasks will be as follows:

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a) Support of the Team Leader in all tasks;

b) Deputize for the Team Leader in his/her absence. Recognize [and make provisions for] that the Team Leader will have an intermittent involvement over the four and a half (4.5) years of the project and deputation periods could exceed three (3) continuous months. During these deputation periods, many of the duties of the Team Leader will have to be assumed by the Deputy Team Leader;

c) Liaise closely with City Office Leaders;

d) Liaise, support and coordinate with Cipta Karya (Directorate General Human Settlements) in the Ministry of Public Works, the CPMU (Central Project Management Unit), the PPIU (Provincial Project Implementation Units or SATKER), the LPMUs (Local Project Management Units), the POKJAs (City Technical Working Group), the proposed UPTDs (Regional Technical Implementation Unit), and consultants for the Project Implementation Support Consultants (PISC) and Detailed Engineering Design (DED);

e) Be chiefly responsible for the production of all project reports;

f) Direct supervision of Central Office staff;

g) Ensure compliance with ADB‟s safeguard policies, including monitoring and reporting requirements;

h) Assist the Team Leader to facilitate high level discussions with CPMU, PPMUs and LPMUs and as appropriate;

i) Assist the Team Leader to provide guidance and technical inputs to the respective Specialists;

j) Manage the activities of all national specialists in Jakarta office and liaise directly with City Office Leaders to ensure successfully run city offices, including that they have a full complement of office staff;

k) Assist the Team Leader to coordinate preparation, compilation, finalization and submission of reports to the Indonesian Government, ADB and MSMIP;

l) Participate in ADB and IndII Program Review Missions, as required;

m) Coordinate and liaise with MSMIP, CPMU, PPMUs and LPMUs and other stakeholders;

n) Provide all the professional and logistic support to the Team Leader and the City Office Leaders (as necessary);

o) Ensure that all MIS systems are up and operating, in Jakarta and the Cities;

p) Take responsibility for the MSMIP web page. This will include seeking and providing information from the cities to give to the MIS Specialist to ensure the

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MSMIP web page is created and regularly (minimum of once per month) updated.

q) Write up monthly reports and transmit to the Team Leader of the project status;

r) Directly liaise, provide input (as necessary) with *Sewerage Design Engineers and *Wastewater Treatment Process Engineers in the cities of Jambi and Pekanbaru, who are separate to construction supervision, to ensure that the City DEDs for sewerage design and wastewater treatment design are properly modelled and reviewed as well as peer reviewed by the international specialists in those areas. Write up summary of the review of the DED design reviews for Jambi and Pekanbaru (extracted from specialist’s reports);

s) Make periodic trips to the four cities to inspect sewerage and wastewater treatment plant works to confirm reports by City Office Leaders. Write up trips and submit to Team Leader;

t) Provide City construction supervision (sewerage or wastewater treatment plant) substitution as required until the episode has passed (in terms of sickness) or temporary replacement until a replacement can be found;

u) Ensure that unaudited annual project financial reports and all financial reports related to the project financing are prepared and in line with the prevailing procedures;

v) Take personal charge of preparing and regularly updating an overall Project Benefit and Monitoring Data Base. Use the data base to prepare reports for the Team Leader to submit to DGHS, MSMIP and ADB or other as necessary; and

w) Any other tasks requested by the Team Leader.

Benefit Monitoring and Evaluation Specialist (National) 86. The position shall be recruited as an individual and will report to the City Office Leader/Deputy Team Leader. Specific tasks shall include:

a) Responsible for monitoring and evaluation of project benefits;

b) Develop and implement a Project Performance Monitoring System;

c) Conduct baseline study and set up all institutional requirements in order to be able monitor and evaluate the benefits of the project after its completion; and

d) Perform other duties as requested by the Team Leader.

Civil Engineer, Sewerage / Drainage (National) 87. The position will be recruited as an individual and shall report to the City Office Leader. Specific tasks will be as follows:

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a) Review and become familiar with the DED with respect to intended overall sewerage design;

b) Overview Contractor‟s laying of sewerage pipelines with respect to hydraulics and embedding pipelines in various soil structures;

c) Overview the design and installation use of interceptors (as appropriate) for collection of dry weather drainage (and bypass of wet weather flows) for conveyance by pipeline to the WWTP;

d) Overview sites in need of drainage before installation of works;

e) Overview of the use and application of fill for site elevation and the laying of sewerage;

f) Assist with interpretation of the Technical specifications for each subproject; and

g) Other duties as requested by the City Office Leader.

Civil Structural Engineer (National) 88. The position will be recruited as an individual and shall report to the City Office Leader. Specific tasks will be as follows:

a) Review and become familiar with the DED with respect to intended project structural requirements;

b) Overview (as necessary) construction of concrete water retaining structures;

c) Overview construction of water retaining earthen lagoons (as necessary) for use as treatment systems;

d) Assist with interpretation of the Technical specifications for each subproject;

e) Overview of structural designs for pump stations; and

f) Other duties as requested by the City Office Leader.

Construction Supervision Consultant – WWTP (National) 89. The position will be recruited as an individual and shall report to the City Office Leader. Specific tasks will be as follows:

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a) Review and become familiar with the DED with respect to intended the wastewater treatment plant design;

b) Daily supervision of works by the contractor(s) at the city WWTP;

c) Monitoring of materials of construction and equipment, including sampling and testing as deemed necessary and reporting of these results to relevant international and national specialists.

d) Monitor WWTP construction progress and ensure quality and timeliness of the deliverables / outputs;

e) Monitor the construction method by assessing the adequacy of the contractor’s input materials, labor, environmental, safety equipment and construction methods;

f) Record the work measurement and certify the contractor’s interim and final bill of payment;

g) Scrutinize the contractor’s detailed work program and guide Contractor in preparation of supervision schedule / work plan as necessary;

h) Measure, check and certify completed works against original detailed designs;

i) Overview commissioning as well as defects liability period activities as they apply;

j) Monitor and report that the Project works are carried out in accordance with ADB environmental, labor, safety, social and resettlement safeguards and policies;

k) Prepare monthly project progress reports describing the physical progress of each subproject for use by the City Office Leader, highlighting impediments to the quality and progress of the works and remedial actions;

l) Contribute towards preparation of a city project completion report, in accordance with a schedule and terms of reference to be mutually agreed by MSMIP, CPMU and ADB;

m) Carry out necessary quality control activities and certify that the quality of works conforms to the specifications and drawings;

n) Establish monitoring Quality assurance system to verify source of materials, equipment and certification;

o) Assist third party inspections, as necessary, as decided by MSMIP, CPMU and/or ADB;

p) Coordinate with the private contractors in clearing road-blocks and obtaining required clearances from various Government agencies during the construction and commissioning phase;

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q) Inspect regularly the contractor's construction equipment, installations, housing, medical facilities, etc. and prepare inspection acts, and ensure that they are adequate and in accordance with the terms and conditions specified in the contract for the works;

r) Evaluate claims, disputes, extensions of time, and the like, including issuing variation orders list and quantity of additional works; and

s) Other tasks as assigned by the City Office Leader.

Electrical Engineer (National) 90. The position will be recruited as an individual and shall report to the City Office Leader. Specific tasks will be as follows:

a) Review and become familiar with the DED with respect to the intended design of the sewerage system, particularly those sections involving pump stations as well as the overall wastewater treatment plant process design and its power and control requirements;

b) Overview of proposed control systems and electrical works of SPSs (sewage pump stations);

c) Overview of control systems and electrical works associated with WWTP (wastewater treatment plants);

d) Review power requirements for the pump stations and the WWTPs;

e) Overview nominated equipment and its compatibility with the site power and capacity;

f) Assist with SCADA implementation (where appropriate);

g) Assist with interpretation of the Technical specifications for each subproject; and

h) Check upon the connection to the national grid and verify the transformer capacity

i) Other tasks as assigned by the City Office Leader.

Engineering Support – Drafter (National) 91. The position will be recruited as an individual and shall report to the City Office Leader. Specific tasks will be as follows:

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a) Set up and implement a CAD drafting capability for each city office;

b) Liaise with all city team members, especially with GIS and survey specialists;

c) Take responsibility for QA/QC of drawings (review, incorporation of amendments, tracking of revisions);

d) Drawings to be done to international standards, preferably BS 1192, which relies

e) heavily on the Code of Procedure for the Construction Industry;

f) Provide assistance to contractors with respect to drawing revisions as is required;

g) Set up systems to fully utilize the capabilities of CAD for review and monitoring of the city projects;

h) Set up drawings/systems from which to determine quantities (e.g. pipe lengths, soil quantities, concrete quantities, etc);

i) Provide assistance to city team members for drawing requests;

j) Check for data consistency (slopes, invert levels, structure dimensions etc in all relevant documentation from MSMIP consultants and contractors; and

k) Other duties as requested by the City Office Leader.

Environmental Specialist (National) 92. The position will be recruited as an individual and shall report to the Team Leader. Specific tasks will be as follows: a. Advise the City Office Leader on the environmental aspects of construction activities; b. Establish a system to monitor environmental safeguards of the subproject including monitoring the indicators set out in the monitoring plan of the EMP; c. Assist the City Office Leader in ensuring that CEMPs are prepared by contractors prior to actual construction; d. Assist in compliance monitoring of CEMPs implementation; e. Monitor implementation of Environmental standards, safeguards and Resettlement plans; f. Review, monitor and evaluate the effectiveness of the CEMPs, and recommend necessary corrective actions; g. Assist in supervising implementation of environmental mitigating measures required for the construction activities; h. Prepare monthly and quarterly environmental monitoring reports; i. Assist the PPMU/LPMU in addressing, in a timely manner, any grievances brought about through the Grievance Redress Mechanism; and j. Other duties as requested by the City Office Leader.

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Financial Management Specialist (National) 93. The position will be recruited as an individual and will report to the Team Leader. Specific tasks will be as follows: a. Advise EA, CPMU and LPMU on organizational arrangements for effective financial management during project implementation; b. Establish procedures for project financial planning and budgeting, accounting, reporting, auditing, and funds disbursement and develop associated manuals, as maybe required; c. Provide appropriate operational advice and assistance to the CPMU and LPMU in the operation and reporting of the project financial and accounting systems; d. Assist in setting up project accounts and preparing and updating financial records, projections and reports in accordance with the procedural requirements of the Government and ADB; e. Assist the CPMU and LPMU in preparing operational budgets and disbursement projections; f. Assist in processing ADB loan withdrawal applications including certificates and reporting formats for efficient flow of funds between Government and ADB to contractors, suppliers and/or consultants; g. Review current budgeting, accounting, financial reporting and internal control systems of the CPMU and LPMU and recommend measures to improve the efficiency and accuracy of the systems; h. Ensure that unaudited annual project financial reports and all financial reports related to the project financing are prepared and in line with the prevailing procedures; and i. Other duties as requested by the Team Leader and Deputy Team Leader Accounting Specialist (National) 94. The position will be recruited as an individual and shall report to the City Office / Team Leader / and the Financial Management Specialist in Jakarta. Specific tasks will be as follows: a. Advise LPMU on organizational arrangements for effective financial management during project implementation; b. Establish standard procedures for maintaining project accounts. budgeting, reporting, auditing and funds disbursement for the Project, and provide training to LPMU financial staff as necessary; c. Develop budgets and disbursement schedules for project activities based on annual work plans; d. Assist in setting up project accounts and preparing financial records, projections and reports in accordance with the procedural requirements of the Government and ADB; e. Assist in processing ADB loan withdrawal including certificates and reporting formats for efficient flow of funds between Government and ADB to the contractors, suppliers and/or consultants; f. Review current budgeting, accounting, financial reporting and internal control

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systems of the LPMU and recommend measures to improve the efficiency and accuracy of the systems; and g. Other duties as requested by the City Office Leader / Financial Management Specialist. Gender & Social Development Specialists (National) 95. The position will be recruited as an individual and shall report to the City Office Leader / Deputy Team Leader. Specific tasks will be as follows: a. Prepare detailed plans, implement, monitor and report on poverty reduction and social plans and GAP progress, and identify corrective measures, when necessary, to ensure GAP and SPRSS outcomes; b. She/he will maintain the desired level of gender awareness. The Gender and Social Development Consultant He shall develop and facilitate training of staff on Gender, social development and community facilitation strategies while ensuring that technical and management training courses have 50% female participants; c. Help recruit female and male community mobilizers; d. Assess and ensure that mechanisms, processes and capacities are in place to expand orientation of sewerage service delivery as public service; e. Assess the training needs of village structures and beneficiary women and men in sanitation coverage areas. Design and supervise community-level training for adequate technical and skills training on gender, livelihood development, hygiene and sanitation promotion for household and village governments; f. Strengthen pro-poor targeting strategies and capacity building on sanitation management for implementing agencies, communities and village governments on sanitation management; g. Assess needs at WWTP sites and ensure that appropriate sanitation systems and/or livelihood development plan are set up for WWTP sites, as needed, with criteria for accessing Livelihood Development Seed funds are augmented in partnership with other organizations for funding and technical assistance in coordination with appropriate partners such as the Cooperatives and Small and Medium Enterprise Agency (Dinas Koperasi dan UKM) and NGOs; h. Support MSMIP PPMS through identification and monitoring of sex-disaggregated indicators; i. Assess and ensure that mechanisms, processes and capacities are in place to expand orientation of sewerage service delivery as public service; and j. Other duties as requested by the City Office/Team Leaders. GIS Specialist (National) 96. The position will be recruited as an individual and shall report to the City Office Leader. Specific tasks will be as follows: a. As necessary, undertake data collection, analysis, storage and retrieval through a variety of techniques; b. Assist and check of pipeline layouts/routes and road infrastructure as necessary to

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ensure contract compliance and optimum routes; c. Assist and check layout of treatment plant unit processes for acceptability; d. Develop the GIS outputs to directly link to program delivery plans of the overall project; e. Provide general IT support to city office; f. Liaise with Core Team MIS Specialist; and g. Other duties as requested by the City Office Leader. Health & Safety Coordinator (National) 97. The position will be recruited as an individual and shall report to the City Office Leader. Specific tasks will be as follows: a. Close liaison with other city project staff; b. Monitoring of health and work place safety practices of all contractors, both at the job sites and any other facilities set up for workers; c. Monitor Project compliance with ADB health and safety policies; d. Preparation of monthly reports for City Office Leader; and e. Other duties as requested by the City Office Leader. Mechanical Engineer (National) 98. The position will be recruited as an individual and shall report to the City Office Leader. Specific tasks will be as follows: a. Review and become familiar with the DED with respect to the intended design of the sewerage system, particularly those sections involving pump stations as well as the overall wastewater treatment plant process design and their mechanical equipment requirements; b. Monitoring of SPS (sewage pump station) equipment being put forth by the contractor(s) for quality, suitability of purpose and compliance with specifications; c. Monitoring of equipment being put forth by the contractor(s) for quality, suitability of purpose and compliance with specifications for use in the WWTPs; d. Provision of mechanical technical assistance as requested; e. Assist with interpretation of the Technical specifications for each subproject; and f. Other duties as requested by the City Office Leader. MIS Specialist / Web Designer (National) 99. The position will be recruited as an individual and shall report to the Team Leader. Specific tasks will be as follows: a. Provide leadership to the PISC in the Information Technology (IT) area for all aspects of the Project; b. Establish and manage and help to manage all Project IT-platforms; c. Serve as primary source of guidance for all information system and technology related matters for all project offices; d. Make recommendations for IT-based project monitoring for all the cities;

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e. Establish, and keep updated, a MSMIP web-site that shows the contract packages and implementation plan and which discloses the use of the Loan proceeds, including, within one (1) week of award, details of each contract; and f. Other duties as requested by the Team Leader. Procurement Specialist (National) a. Review of the Procurement Plan(s) of the CDTA and assist with international and local procurement as necessary to ensure its timely implementation; b. Assist as necessary in capacity building of the CPMU, PPIU and LPMU procurement personnel on the latest available ADB Procurement Guidelines with emphasis on the following provisions: i. Advance Contracting and Retroactive Financing ii. ADB Review, including Appendix 1 (ADB Review of Procurement Decisions), iii. Misprocurement and Fraud and Corruption, iv. International Competitive Bidding, if ICB applies, v. National Competitive Bidding vi. Domestic Preferences vii. Guidance to Bidders c. Assist the International Contract Specialist to discuss the Asian Development Bank Bid Data Sheet and the Asian Development Bank Special Conditions of Contract for both Procurement of Goods and Infrastructure Projects with the CPMU, PPIU and LPMU procurement personnel to resolve questions or difficulties that may hinder procurement processes in the future; d. Assist the International Contract Specialist to advise the CPMU, PPIU and LPMU on the resolution of complaints/problems encountered during the procurement processes undertaken and recommend actions to prevent such occurrences in the future; e. Assist the International Contract Specialist to prepare completion reports on completed procurement processes up to loan release showing timelines and completion dates for each activity, problems encountered (if any), measures taken to resolve such problems, and recommendations to improve the procurement processes observed; f. Provide monthly report on status of activities and other documents required by the ADB and DGHS; and g. Perform other duties as requested by the Team Leader. Public Relations / Sanitation Marketing Specialists (National) 100. The position will be recruited as individuals and shall report to the City Office Leader. Specific tasks will be as follows: a. Firm up in collaboration with Gender and Social Development Specialist as well as the Safeguards/Resettlement Specialist a marketing and communication strategy to achieve universal coverage in target sites; b. Prepare strategy and tools to ensure that all are reached for sanitation connection and that messages are refined for effective communication with specific stakeholders such as those in sanitation hot spots, open defecators, and low income sectors including

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vulnerable groups, commercial sector, etc. by incorporating lessons and resources developed by such programs such as the CDTA MSHMP in its Sewerage project in Jogjakarta; c. Facilitate planning for collaborative action sanitation promotion through workshops for City/village Sanitation and Hygiene Marketing Plans and establishment of mechanisms to implement action plans to ensure sustained behavior change on sanitation from a marketing and policy perspective; d. Document and share people-centered-approach for hygiene and sanitation outreach campaign with appropriate products for MSMIP subgroups such as poor, open defecators, etc; e. Promote capacity building on sanitation marketing - develop and implement orientation modules on key marketing and communication strategies and tools to ensure effective coordination and buy-in of partners and stakeholders; f. Assess and ensure that mechanisms, processes and capacities are in place to expand orientation of sewerage service delivery as public service; g. Provide advice/training to MSMIP, partners, local governments and communities on sanitation and hygiene communication strategy; recommend ways to firm up behavior change from a marketing and policy perspective; and h. Other duties as requested by the City Office Leader. Surveyor (National) 101. The position will be recruited as an individual and shall report to the City Office Leader. Specific tasks will be as follows: a. Verification of surveyed maps and design vis-a-vis ground situation and make necessary corrections; b. Carry out engineering topographic surveys, including horizontal and vertical alignment and cross sections as are necessary for auditing construction works; c. If the survey data should be found erroneous on ground during implementations, provide assistance to contractor to implement corrective measures at the contractor‟s own risks and costs; d. Undertake necessary surveys and investigations including off-site information; e. Update maps and plans; f. Review available secondary data and reports required for analyzing the existing infrastructure facilities before designing the subproject; g. Provide inputs including preparation of detailed project reports for subprojects for advance preparations of project in subsequent tranches of the Project; h. Provide survey data to the contractor and checking the contractor's setting-out of the works and inform of its accuracy as necessary; and i. Other duties as assigned by the City Office Leader. Social Safeguards / Resettlement Specialist (National) 102. The position will be recruited as an individual and shall report to the City Office Leader. Specific tasks will be as follows:

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a. Close liaison with international specialists, particularly Social Safeguards / Resettlement Specialist; b. Review specific reports, with special regard to gender mainstreaming, poverty reduction, stakeholder communication, beneficiary participation, and social development activities, and forward copies to City Office Leader and Team Leader for forwarding to ADB; c. In the event that any involuntary resettlement is required (if the DED did not cover it) prepare a Resettlement Plan and assist the PMUs to satisfy the requirements of the Resettlement Framework; d. Monitor, and report to City Office Leader / Team Leader / ADB the current status of environmental management plan implementation; e. Monitor, and report to City Office Leader and Team Leader for forwarding to ADB on the status of GAP, SPRSS, CPP, and SCS plan implementation; f. Monitoring of Gender Action Plan progress to be included in implementation reviews, mid-term reviews and PCRs follow monitoring templates; g. In the event that any challenges are met in implementation or off course, advise City Office Leader and Team Leader for forwarding to ADB in timely manner and suggest corrective actions in consultation with EA/IA; and h. Other duties as requested by the City Office Leader.

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ADB CAPACITY DEVELOPMENT TECHNICAL ASSISTANCE (CDTA) TERMS OF REFERENCE

A. OBJECTIVES AND SCOPE OF WORK

The ADB and Government of Indonesia (GoI) intends to procure the services of a reputable consultant firm to provide technical advisory services to government institutions in Cimahi, Jambi, Makassar, Palembang and Pekanbaru, to support the implementation of the proposed ADB-funded capacity development technical assistance (CDTA) on Capacity Development for Metropolitan Sanitation Management Investment Project (MSMIP). A total of 109 person-months (27 person-months international and 82 person-months national) will be recruited for TA implementation support for 3.5 years. Consultants will be selected in accordance with ADB's Guidelines on the Use of Consultants by ADB and its Borrowers (2010, as amended from time to time). ADB will recruit the consultants, in close consultation with AusAID and the Directorate General of Human Settlements (DGHS) in the Ministry of Public Works through quality and cost-based selection procedures (90-10), using a simplified technical proposal. The consulting firm will also be responsible for procuring equipment, and administering the costs associated with training and workshops. Makassar has received institutional support as part of the recently completed CDTA for MSMHP. The MSMHP CDTA had three (3) outputs, namely: Improved Delivery of Community-based and Centralized Sanitation Initiatives (Output 1 covering City Sanitation Strategy (CSS) and Community Approach and Public Health (CA/PH), Improved Operation and Maintenance of Sewerage Infrastructure (Output 2 covering FOPIP), and Strengthened Institutions in Environmental Sanitation Management (Output 3 covering the LIDAP). The key lessons learned and proposals of the MSMHP project included (i) the need to prepare for and establish institutions to manage the sanitation systems; (ii) more training needed for operations of offsite systems and for the UPTD, and (iii) wide application of the Micro-Marketing model for faster wastewater house connection development to make investment in the wastewater sector feasible, effective and sustainable as soon as construction is completed. See Attachment 3a for Lessons Learned and Proposals under the CDTA conducted under the MSMHP1 The CDTA consulting firm will have a coordinating office within DGHS in Jakarta, but the consultants will conduct substantial work in the 5 sub-project cities. They will work in close consultation with government officials particularly the (i) POKJA (City Technical Working Group), (ii) proposed UPTDs (Regional Technical Implementation Unit) for the four cities and (iii) the (City Local Project Management Unit (LPMU) and the GoI owned Water Supply Enterprise (PDAM) in Palembang.

1. Capacity Building

Capacity building covers assistance to the five city governments and agencies in carrying out the capacity building activities targeted at two (2) levels – sector (or city) management level (through the implementation of the Local Institutional Development Action Plan (LIDAP)) and at the service delivery level (through the implementation of the Financial and Operating Performance Improvement Plan (FOPIP)). Capacity building for project implementation and operation is part of the LIDAP and includes interventions to be initiated and managed by the city government. These are directed at influencing the operating conditions of the Service Delivery Organization (SDO). The FOPIP, on the other hand, includes interventions which are to be ini-tiated and managed by the SDO.

1 Final Report: ADB Project ID Nr.: INO 39071-04 Capacity Development for Metropolitan Sanitation Management and Health Project (CDTA-MSMHP), 31st March 2013.

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The LIDAP includes key actions to be initiated and managed by the city government in order to reform the current environment for wastewater management and sanitation under which the SDO will be operating. The LIDAP consists of nine (9) components, as follows; (i) establishing an effective service delivery organization (SDO): (ii) capacity building for project management and implementation; (iii) raising demand for sanitation improvements; (iv) training and human resource development (for sector management); (v) improvement of sector governance; (vi) streamlining the wastewater management & sanitation sector structure in the city; (vii) improving access to capital financing and O&M budgets (viii) introducing regulatory reform; and (ix) promotion of appropriate private sector partnerships (PPPs) in investment, construction, operation and maintenance. The FOPIP was prepared for the SDO to assist in organizing and strengthening the service delivery organization. It is proposed to have four (4) components: (i) adoption of the SDO structure and initial staffing plan; (ii) preparation of standards, systems and procedures for technical operations, operation and maintenance, including the septage management program; (iii) establishment of business management control and information system; and (iv) planning and implementation of human resources management and development. Consultancy assistance will be provided as follows:

a. Preparation of policies, guidelines, and manuals

This covers sector and SDO reform initiatives such as preparation of legal and regulatory frameworks, draft decrees and legal documents, SDO organization, staffing and functions, policies and guidelines, operating manuals, business planning models and financial management systems. The consultants will lead preparation of these standard documents or templates in the initial year and once approved, they will be provided to each of the 5 cities to be the basis of preparation of specific policies and guidelines for that city.

b. Advisory services, technical assistance and progress monitoring

The consultants will provide advisory services, technical assistance and monitoring of institutional development and progress of cities and SDOs. A system will be developed consisting of periodic development indicators that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO. The system will tie up each LIDAP and FOPIP action plan to the desired indicators to be achieved within a predetermined period. Once the system is established the consultants will assist the cities implement the LIDAP and FOPIP through regular visits. The visits will provide planning, assessment and strategy development sessions and opportunities for coaching and technical assistance. This will cover all the institutional, environmental, legal, etc. concerns discussed in the PPTA reports.

c. Training and Workshops

In city workshops training will be provided in the following areas:

• Utility Management • Technical Training • Project Management

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• Sector Management Capacity building activities on environment are covered in these in country workshops, particularly in the technical management workshops (Level 1 for non-technical managers and Level 2 for professional levels) and in the project management workshop on environment and impact monitoring and mitigation workshop. These workshops are currently provided as part of the CDTA. However it is possible that technical training will eventually be fully covered by the Indonesia Waste Water Institute (IWWI). The CDTA consultants will assess the status of the IWWI project in 2015 and will assess if the institute is ready to provide the technical training envisioned under the technical training workshops. In this case, it may no longer be necessary for the CDTA to provide the technical training workshops and the CDTA consultants will make the necessary adjustments to the workshops. See succeeding section d.

d. Indonesia Waste Water Institute (IWWI) Training and Certification Program

(i) Background on IWWI

In September 2012 the Asian Development Bank appointed consultants to undertake the study ADB TA-7739 - Indonesia Water Supply and Sanitation Institute (IWSSI). The main objective of the project is to accelerate the building of capacity in urban water and sanitation services in Indonesia, through the creation of a training and professional certification body for water and wastewater operators that has initially been given the name of Indonesian Water Supply and Sanitation Institute (IWSSI). Eventually, the institute was referred to as the Indonesian Waste Water Institute (IWWI).The main outcome of this project is a 5-year plan for the creation and operation of the training and certification institution, along with a set of recommendations for policy-making measures that should support and safeguard its consolidation for the benefit of the people of Indonesia. Initially, the 5-year working plan includes a first batch of people to be trained and certified from existing offsite system operators. The results of the IWWI model evaluation and improvement task that will take place at the end of 2014 should be taken into account in the CDTA (at FOPIP and LIDAP levels). Based on recent discussions with the IWSSI project consultants IWSSI, it is possible that the MSMIP cities will be included in two batches, in 2015 (for the current UPTD head) and in 2016 (for the offsite system manager/operator). It is thus proposed that the MSMIP cities (Makassar, Pekanbaru, Jambi, Palembang and Cimahi) will be targeted for the second batch training in 2015. Funding for this will be provided by the ADB Water Operators Partnership’s (WPO) project. The model proposes professional certification as a means of i) testing the level of competence of professionals; ii) defining the minimum professional standards for certain roles; and iii) incentivizing the pursuit of continuing development among staff in the sector, based on the idea that the certification –provided that it has credibility and good reputation in the sector- will serve as a differentiating element of professional excellence. The scope of the IWWI training courses is similar to the coverage of the Technical Training workshops proposed under this CDTA (See previous section c).

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(ii) IWWI Links to CDTA The key points of interrelationships between IWWI and this CDTA include:

• The incorporation of knowledge products resulting from the MSMIP CDTA into the IWWI for further replication;

• All IWWI trainees could very much benefit from making site visits during the installation and testing of the electro-mechanical equipment at the MSMIP plants, as well as during commissioning;

• Once trained, the SDO managers will be involved in the specific area of the FOPIP that deals with the definition of work competencies and recruitment processes; and

• Future managers of the MSMIP assets could also benefit from the WOPs activities that happen in parallel to the IWWI, for example joining the training courses carried out at the premises and offices of the international mentor operators (in the second half of 2015).

The incorporation of knowledge products resulting from the MSMIP CDTA into the IWWI for further replication. The FOPIP has four components: (i) adoption of the SDO structure and initial staffing plan; (ii) preparation of standards, systems and procedures for technical operations, operation and maintenance, including the septage management program; (iii) establishment of business management control and information system; and (iv) planning and implementation of human resources management and development. All of these activities are directly related with several modules in the IWWI curriculum, for both managers and operators. One of the outputs from the CDTA will be the review of the IWSSI module materials to incorporate lessons learnt and practical examples, and in general to contribute to its continuing improvement. All IWWI trainees could also very much benefit from making site visits during the installation and testing of the electromechanical equipment at the MSMIP plants, as well as during commissioning. Many of these tasks the managers and operators will encounter during their professional life (replacing equipment or plant shut downs, for example). Once trained, the SDO manager should be involved in the specific area of the FOPIP that deals with the definition of work competencies and recruitment processes. Future managers of the MSMIP assets could also benefit from the WOPs activities that happen in parallel to the IWWI, for example joining the training courses carried out at the premises and offices of the international mentor operators (in the second part of 2015). See attachment 3b. e. Water reuse Recycled water is defined as given by the California Water Code as “water which as a result of treatment of waste, is suitable for direct beneficial use or a controlled use that would not otherwise occur.” The CDTA will explore possibilities for waste water reuse at least for non-edible crops in the vicinities of the waste water treatment plants. The reuse of treated sewage as recycled water is not a new development. Historically, rivers have been used to receive effluents from community, agricultural and industrial activities at an upstream location and be drawn downstream for the same water uses. Informal water reuse occurs currently in many parts of Indonesia with, for example, the growing of ‘kangkung’ in drainage channels and low lying areas. The effluent from wastewater treatment plants (IPALs) will, in the future, be the main source of water for recycling purposes. The reuse of water from these plants reduces (i.e. replaces) demand of potable water for non-potable

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means, often by industries, in tree plantations or other use if not in direct contact with food that will be directly consumed. This practice ensures that potable sources are reserved for public drinking which is considered as the highest priority of water use. f. Bio-solids Strategy The CDTA will also assist the cities develop a Sludge Strategy or Bio-solids Strategy. This will be part of the FOPIP since the final sludge needs to be safely disposed. Options such as disposal in a landfill or for reuse can be discussed as part of the CDTA study. See attachment 3c. g. Benefit Monitoring and Evaluation

Monitoring and evaluation of project benefits will likewise be included as part of the CDTA. This calls for the development and implementation of a Project Performance Monitoring System, conduct of a baseline study and setting up of all institutional requirements in order to be able monitor and evaluate the benefits of the project after its completion. B. CONSULTANT INPUTS All consultant specialists are expected to be involved in the preparation of draft policy/ guidelines/ manuals, and training materials and in the conduct of workshops. In addition, they will also be conducting advisory visits to all four cities to help ensure and monitor that the LIDAP and FOPIP recommendations are being implemented. Consultant inputs are summarized in Table 1.

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Table 1. Consulting Inputs

It is anticipated that the capacity building for MSMIP will be implemented over a 3.5 year period from end of 2nd quarter (Q2) 2014 to end of (Q4) 2017. Refer to Table 2 for an overview of required deliverables.

Table 2: Required Consultant Inputs

Position Person Months Qualifications Required

1. International Consultants Team Leader/ Utility Management Specialist 9 (I)

An experienced Senior Utility Manager with at least 15 years senior management experience in a modern utility company. The expert should also have experience in project implementation and management. Must demonstrate a broad range or relevant management experience and success in dealing with issues/problems. The expert will be responsible for coordinating with the consulting team members in effective TA implementation, including submission of timely progress reports. Previous experience in Indonesia is considered essential.

Sewerage Operations Specialist 4 (I)

A professional engineer with internationally recognized engineering qualification and at least 10 years broad-based operational management experience in wastewater operations including project implementation

Consulting Positions 2013 2014 2015 2016 2017 Total pms

a) International1 Team Leader/Utility Management Specialist 3.0 3.0 2.0 1.0 92 Sewerage Operations Specialist 2.0 - 2.0 - 43 Business/ Financial Planning Specialist 2.0 - 1.0 - 34 Organizational Development and Training

Specialist 1.0 1.0 1.0 1.0 45 MIS Specialist 1.0 - 1.0 - 26 Regulatory PPP Specialist 1.0 - 1.0 - 27 Wastewater Specialist - Biosolids 1.0 - - - 18 Benefit and Monitoring Specialist 1.0 - - - 19 Wastewater Specialist - Water reuse 1.0 - - - 1

Sub-total 0 13 4 8 2 27

b) National1 Deputy Team Leader - Utility Mgt. 6.0 12.0 12.0 12.0 422 Sewerage Operations Specialist 3.0 - 2.0 2.0 73 Legal Specialist 1.0 - 1.0 - 24 Customer Service Specialist 1.0 - - 1.0 25 Management Training/Bus. Devt Specialist 3.0 2.0 1.0 1.0 76 Regulatory and PPP Specialist 2.0 - 1.0 - 37 Accounting Systems Specialist 3.0 - 2.0 - 58 Community Development Specialist 3.0 - 2.0 - 59 MIS/Information Technology Specialist 3.0 2.0 2.0 - 7

10 Benefit and Monitoring Specialist 2.0 - - - 2Sub-total 0 27 16 23 16 82

Total 0 40 20 31 18 109

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Table 2: Required Consultant Inputs (construction).

Business/ Financial Planning Specialist 3 (I)

An experienced business and financial manager with at least 10 years work experience in the utilities sector. The expert should have knowledge about business modelling.

Organizational Development/ Training Specialist 4 (I)

1. The organizational development expert shall have: (i) at least 15 years work experience and preferably a postgraduate degree in public administration, business studies, marketing, organizational/institutional development or human resources management; (ii) at least 5 years graduate experience in either design and analysis of public enterprises, human resources management and industrial relations, marketing or public relations or 10 years in senior positions in government; (iii) ability to facilitate discussion and reach consensus within local government for institutional improvements in sanitation management. The specialist will be responsible for working with the other specialists in implementing and updating FIPOPs and LIDAPs for each city. Previous work experience in Indonesia and current knowledge of local practices would be a distinct advantage.

MIS Specialist 2 (I)

The expert should have at least 10 years’ experience on developing MIS/ financial systems for utilities and preparing systems manuals. The expert shall have a graduate degree in information systems with experience in developing MIS including financial systems for both the private and public sector, preferably related to benchmarking performance. The expert will be responsible for reviewing and revising (or establishing) the MIS system in each operating agency for improved sanitation management.

Regulatory and PPP Specialist 2 (I)

A professional with an internationally recognized qualification and with at least 10 years post qualification experience, preferably within the utility sector. This expert should have previous experience in formulating regulatory arrangement and establishing private-public partnerships preferably in the sewerage and sanitation sector. Some previous work experience in Asia, knowledge of local laws, regulations and practices would be a distinct advantage.

Wastewater Specialist – Bio-solids 1 (I)

The expert should have at least 10 years’ experience as a wastewater specialist and with specific experience in bio-solids processing and in writing process operational guidelines.

Benefit Monitoring Specialist 1 (I)

The expert should have at least 10 years’ experience in the development and implementation of a Project Performance Monitoring System, including the conduct of a baseline study, defining measurable performance indicators and setting up all institutional requirements in order to be able monitor and evaluate the benefits of the Project after its completion.

Wastewater Specialist – Water reuse 1 (I)

The expert should have at least 10 years’ experience as a water or wastewater specialist with more specific experience in water reuse and in writing guidelines.

Subtotal International

27

2. Key National Consultants Deputy Team Leader / Utility Management Expert

42 (N)

The Utility Management Expert/Deputy Team Leader shall have: (i) at least 15 years’ experience in the sanitation and/or urban infrastructure sector, with knowledge of urban planning; (ii) at least 10 years of experience preparing/ implementing and/or monitoring local institutional development action plans; (iii) strong leadership and communication skills, with the ability to facilitate discussions and reach consensus among different stakeholders; (iv) ability to

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Table 2: Required Consultant Inputs conduct policy analysis and capacity assessments, and be able to support the development, implementation and monitoring of plans; and (v) excellent skills in both writing and speaking English and Bahasa Indonesia.

Sewerage and Sanitation O & M Engineer

7 (N)

An experienced professional engineer with at least 10 years relevant operational experience in the management of wastewater operations.

Legal Specialist 2 (N)

A professional with knowledge and at least 10 years’ experience in the local legislative and political processes.

Customer Service Specialist 2 (N)

An experienced marketing and customer service manager with at least five years’ experience, preferably in a public utility. The expert should have knowledge about setting up customer service management systems.

Management Training / Business. Devt. Specialist 7 (N)

A professional with at least 10 years’ work experience in organization development, planning and management training preferably for a wastewater or water supply utility company.

Regulatory and Private-Public Partnerships Specialist 3 (N)

A professional with at least 10 years’ work experience preferably within the utility sector. This expert should have previous experience in formulating regulatory arrangements and establishing private-public partnerships preferably in the sewerage and sanitation sector in Indonesia. Knowledge of current local laws, regulations and practices would be a distinct advantage.

Financial/ Accounting System Specialist 5 (N)

A financial/ accounting systems expert with a full Accountancy qualification and experience in the public sector, preferably a public utility. Expert must be fully conversant with all current local accounting regulations and standards. At least ten years relevant experience is needed.

Community Development Specialist 5 (N)

A specialist in community development, community education in the field of water, sanitation or health for at least 10 years.

MIS/Information Technology Specialist 7 (N)

A specialist familiar with current MIS and GIS software with previous experience in customizing commercial accounting and MIS software for specific companies. The individual will need to be fully aware of developments in information technology, and be able to demonstrate past success in information systems implementation.

Benefit and Monitoring Specialist 2 (N)

The expert should have at least 10 years’ experience in the development and implementation of a Project Performance Monitoring System, including the conduct of a baseline study and setting up of all institutional requirements in order to be able monitor and evaluate the benefits of the project after its completion.

Subtotal National 82 Total 109

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A. DELIVERABLES

Table 4.5: Capacity Building Advisory Services - Required Deliverables

Deliverable Month of Deliverya

Number of Copies

Summary of Contents

Inception Report

Initial findings, detailed approach and methodology, detailed work plan.

Quarterly Reportb

Quarterly progress.

Annual Report

Annual progress.

Baseline Report

Update on status of five cities in regard to LIDAP and FIPOP Objectives relevant to Corporate Plan and Business Plan

Draft Business Plan

Includes development of a Business Planning Model

Management Information Systems

Includes Commercial Practices and Financial Manuals

Operation Manuals

Operation and Maintenance of the sewerage collection and sewerage treatment

Training Plan

Includes training schedules and cost estimates

Other reports (as requested by CPMU and agreed by consultant)

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Final Report

Inputs provided, outputs produced, evaluation of achievements, strengths and weaknesses of the approach, used suggested follow-up actions, assess-ment of impacts of the services from the Consultant’s perspective.

a Month of delivery (#1 is the first month of the assignment). b In accordance with ADB guidelines on progress reports. tba = to be advised B. DETAILED POSITION TASKS

International

1. Team Leader/ Utility Management Specialist

a. Responsible for overall TA implementation, including the management of CDTA

consultants, monitoring TA progress and preparing required progress reports; b. Establish project organization and reporting lines and provide necessary orientation

and training for the project staff; c. Lead the preparation of policies, guidelines, and manuals covering sector and SDO

reform initiatives such as preparation of legal and regulatory frameworks, draft decrees and legal documents, SDO organization, staffing and functions, policies and guidelines, operating manuals, business planning models and financial management systems. The TL will also initiate discussions/consultations to obtain the necessary approval for these as well as take the necessary steps towards its implementation;

d. Liaise, support and coordinate with Cipta Karya (Directorate General Human Settlements) in the Ministry of Public Works, the CPMU (Central Project Management Unit), the PPIU (Provincial Project Implementation Units or SATKER), the LPMUs (Local Project Management Units), the POKJAs (City Technical Working Group), the proposed UPTDs (Regional Technical Implementation Unit), and consultants for the Project Implementation Support Consultants (PISC), Detailed Engineering Design (DED), and Construction Supervision (CS) ;

e. Guide the city teams in preparing for and implementing the CDTA activities; f. Prepare the LPMU and the PPIUs for project organization and overall project

implementation readiness; g. Oversee establishment of agreed institutional arrangements and policy requirements

under the Project; h. Participate in ADB or IndII Program Review Missions; and i. Other tasks as requested by the MSMIP Project Manager.

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2. Sewerage Operations Specialist

a. Responsible for ensuring the readiness of the UPTD/SDO of the 4 cities to operate and maintain the wastewater system including the capacity development of the staff;

b. Prepare the Operations Manual covering the operations and maintenance of the sewerage collection and treatment;

c. Be part of the team assisting the Organization Development and Training specialist in the LIDAP and FOPIP implementation in the 4 cities;

d. Provide technical inputs into the LIDAP and FOPIP particularly in the area of sewerage operation and maintenance;

e. Conduct visits and provide advisory services and technical assistance to the cities during planning, assessment and strategy development sessions particularly in the area of sewerage operation and maintenance;

f. Assist the Organization Development and Training Specialist in developing periodic development indicators particularly in the area of sewerage operation and maintenance that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

g. Monitor institutional development and progress of cities and SDOs based on the targets in the development indicators particularly in the area of sewerage operation and maintenance;

h. Prepare the necessary training materials and conduct training on sewerage operation and maintenance for the in- country workshops on Utility Management, Technical Training, Project Management and Sector Management;

i. Coordinate (i) with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating, and (ii) with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization; and

j. Other duties as requested by the Team Leader 3. Business/Financial Planning Specialist

a. Develop the business model for the SDO that will ensure sustainable wastewater operations;

b. Coordinate with the Community Development Specialist and the Customer Service Specialist to design and implement a social marketing strategy to achieve universal coverage in target sites. Assist and advise the city in preparing strategy and tools to ensure that all are reached for sanitation connection;

c. Develop a dynamic financial model that can be updated by the SDO to help them plan, strategize and monitor performance;

d. Be part of the team assisting the Organization Development and Training specialist in the LIDAP and FOPIP implementation in the 4 cities;

e. Provide technical inputs into the LIDAP and FOPIP particularly in the areas of business and financial planning;

f. Conduct visits and provide advisory services and technical assistance to the cities during planning, assessment and strategy development sessions particularly in the areas of business and financial planning;

g. Assist the Organization Development and Training Specialist in developing periodic development indicators particularly in the areas of business and financial planning that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

h. Monitor institutional development and progress of cities and SDOs based on the targets in the development indicators particularly in the areas of business and financial planning

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i. Prepare the necessary training materials and conduct training on particularly in the areas of business and financial planning for the in- country workshops on Utility Management, Technical Training, Project Management and Sector Management;

j. Coordinate (i) with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating, and (ii) with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization; and

k. Other duties as requested by the Team Leader 4. Organizational Development and Training Specialist

a. Mainly responsible for ensuring that the LIDAP and FOPIP activities are carried out as planned in the 4 cities. The consultant will manage the various experts who will provide advisory services and technical assistance and who will monitor institutional development and progress of cities and SDOs;

b. Develop and implement a system consisting of periodic development indicators that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

c. Provide technical inputs into the LIDAP and FOPIP particularly in the areas of organization and training;

d. Conduct visits and provide advisory services and technical assistance to the cities during planning, assessment and strategy development sessions particularly in the areas of organization and training;

e. Coordinate with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating;

f. Coordinate with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization;

g. Prepare and implement the Training Plan and manage the conduct of the various workshops including the participation of the various experts in each workshop. In country workshops will be provided in Utility Management, Technical Training, Project Management and Sector Management workshops;

h. Liaise with the Indonesia Waste Water Institute (IWWI) for the participation of the MSMIP cities in its Training and Certification Program; and

i. Other duties as requested by the Team Leader 5. MIS Specialist

a. Responsible for reviewing and revising (or establishing) the MIS system in the city/ UPTD/ SDO for improved sanitation management;

b. Be part of the team assisting the Organization Development and Training specialist in the LIDAP and FOPIP implementation in the 4 cities;

c. Provide technical inputs into the LIDAP and FOPIP particularly in the area of MIS; d. Conduct visits and provide advisory services and technical assistance to the cities during

planning, assessment and strategy development sessions particularly in the area of MIS; e. Assist the Organization Development and Training Specialist in developing periodic

development indicators particularly in the area of MIS that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

f. Monitor institutional development and progress of cities and SDOs based on the targets in the development indicators particularly in the area of MIS;

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g. Prepare the necessary training materials and conduct training on MIS for the in- country workshops on Utility Management, Technical Training, Project Management and Sector Management;

h. Coordinate (i) with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating, and (ii) with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization; and

i. Other duties as requested by the Team Leader

6. Regulatory and PPP Specialist a. Be part of the team assisting the Organization Development and Training specialist in

the LIDAP and FOPIP implementation in the 4 cities; b. Provide technical inputs into the LIDAP and FOPIP particularly in the areas of regulation

and PPP; c. Conduct visits and provide advisory services and technical assistance to the cities during

planning, assessment and strategy development sessions particularly in the areas of regulation and PPP;

d. Assist the Organization Development and Training Specialist in developing periodic development indicators particularly in the areas of regulation and PPP that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

e. Monitor institutional development and progress of cities and SDOs based on the targets in the development indicators particularly in the areas of regulation and PPP;

f. Prepare the necessary training materials and conduct training on regulation and PPP for the in- country workshops on Utility Management, Technical Training, Project Management and Sector Management;

g. Coordinate (i) with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating, and (ii) with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization; and

h. Perform other duties as requested by the Team Leader. 7. Wastewater Specialist – Bio-solids

a. Assist the cities to develop a Bio-solids strategy. This will be part of the FOPIP since the final sludge needs to be safely disposed. The specialist will develop options such as disposal in an engineered landfill or for commercial reuse;

b. Conduct visits and provide advisory services and technical assistance to the cities particularly in the area of the development of a bio-solids strategy during planning, assessment and strategy development sessions;

c. Prepare the necessary training materials and conduct training on sewerage operation and maintenance particularly on bio-solids strategy for the in-country workshops on Utility Management, Technical Training, Project Management and Sector Management; and

d. Other duties as requested by the Team Leader. 8. Benefit Monitoring and Evaluation Specialist

a. Responsible for monitoring and evaluation of project benefits; b. Develop and implement a Project Performance Monitoring System;

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c. Conduct baseline study and set up all institutional requirements in order to be able monitor and evaluate the benefits of the project after its completion; and

d. Perform other duties as requested by the Team Leader. 9. Wastewater Specialist – Water reuse

a. Assist the cities explore possibilities for waste water reuse at least for non-edible crops in the vicinities of the waste water treatment plants;

b. Conduct visits and provide advisory services and technical assistance to the cities particularly in the area of water reuse during planning, assessment and strategy development sessions;

c. Prepare the necessary training materials and conduct training on sewerage operation and maintenance particularly on water reuse for the in-country workshops on Utility Management, Technical Training, Project Management and Sector Management; and

d. Other duties as requested by the Team Leader. National Consultants 1. Deputy Team Leader /Utility Management Specialist

a. Support the Team Leader in all tasks; b. Deputize for the Team Leader in his/her absence; c. Liaise, support and coordinate with Cipta Karya (Directorate General Human

Settlements) in the Ministry of Public Works, the CPMU (Central Project Management Unit), the PPIU (Provincial Project Implementation Units or SATKER), the LPMUs (Local Project Management Units), the POKJAs (City Technical Working Group), the proposed UPTDs (Regional Technical Implementation Unit), and consultants for the Project Implementation Support Consultants (PISC), Detailed Engineering Design (DED), and Construction Supervision (CS) ;

d. Assist the Team Leader to provide guidance and technical inputs to the respective Specialists;

e. Manage the activities of national specialists; f. Assist the Team Leader to coordinate preparation, compilation, finalization and

submission of reports to the Indonesian Government, ADB and MSMIP; g. Participate in ADB and IndII Program Review Missions, as required; h. Provide all the professional and logistic support to the Team Leader; and i. Other duties as requested by the Team Leader.

2. Sewerage Operations Specialist

a. Assist the International Sewerage Operations Specialist in activities to ensure the readiness of the UPTD/SDO of the 4 cities to operate and maintain the wastewater system including the capacity development of the required staff;

b. Assist the International Sewerage Operations Specialist to prepare the Operations Manual covering the operations and maintenance of the sewerage collection and treatment;

c. Be part of the team assisting the Organization Development and Training specialist in the LIDAP and FOPIP implementation in the 4 cities;

d. Provide technical inputs into the LIDAP and FOPIP particularly in the area of sewerage operation;

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e. Conduct visits and provide advisory services and technical assistance to the cities during planning, assessment and strategy development sessions particularly in the area of sewerage operation;

f. Assist the Organization Development and Training Specialist in developing periodic development indicators particularly in the area of sewerage operation that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

g. Monitor institutional development and progress of cities and SDOs based on the targets in the development indicators particularly in the area of sewerage operation and maintenance;

h. Prepare the necessary training materials and conduct training on sewerage operation and maintenance for the in- country workshops on Utility Management, Technical Training, Project Management and Sector Management;

i. Coordinate (i) with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating, and (ii) with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization; and

j. Other duties as requested by the Team Leader. 3. Legal

a. Responsible for coordinating with the Organizational Development and Training specialists in reviewing, recommending and amending necessary sanitation legislation in the 4 cities particularly in establishing the BLUDs;

b. Be part of the team assisting the Organization Development and Training specialist in the LIDAP and FOPIP implementation in the 4 cities;

c. Provide technical inputs into the LIDAP and FOPIP particularly in the area of policy and legal framework;

d. Conduct visits and provide advisory services and technical assistance to the cities during planning, assessment and strategy development sessions particularly in the area of policy and legal framework;

e. Assist the Organization Development and Training Specialist in developing periodic development indicators particularly in the area of policy and legal framework that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

f. Monitor institutional development and progress of cities and SDOs based on the targets in the development indicators particularly in the area of policy and legal framework ;

g. Prepare the necessary training materials and conduct training on policy and legal framework for the in- country workshops on Utility Management, Technical Training, Project Management and Sector Management;

h. Coordinate (i) with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating, and (ii) with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization; and

i. Other duties as requested by the Team Leader. 4. Customer Service Specialist

a. Under the guidance of the Business/Financial Planning Specialist and in coordination

with the Community Development Specialist, design and implement a social marketing strategy to achieve universal coverage in target sites;

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b. Assist and advise the city in preparing strategy and tools to ensure that all are reached for sanitation connection and that messages are refined for effective communication with specific stakeholders such as those in sanitation hot spots, open defecators, and low income sectors including vulnerable groups, commercial sector, etc. by incorporating lessons and resources developed by such programs such as the CDTA MSHMP in its Sewerage project in Jogjakarta;

c. Be part of the team assisting the Organization Development and Training specialist in the LIDAP and FOPIP implementation in the 4 cities;

d. Provide technical inputs into the LIDAP and FOPIP particularly in the areas of customer service;

e. Conduct visits and provide advisory services and technical assistance to the cities during planning, assessment and strategy development sessions particularly in the areas of customer service;

f. Assist the Organization Development and Training Specialist in developing periodic development indicators particularly in the areas of customer service that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

g. Monitor institutional development and progress of cities and SDOs based on the targets in the development indicators particularly in the areas of customer service;

h. Prepare the necessary training materials and conduct training on particularly in the areas of customer service for the in- country workshops on Utility Management, Technical Training, Project Management and Sector Management;

i. Coordinate (i) with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating, and (ii) with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization; and

j. Other duties as requested by the Team Leader.

5. Management Training / Business Development Specialist

a. Assist the International Organizational Development and Training Specialist in ensuring that the LIDAP and FOPIP activities are carried out as planned in the 4 cities;

b. Assist the International Organizational Development and Training Specialist to develop and implement a system consisting of periodic development indicators that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

c. Assist the International Organizational Development and Training Specialist to provide technical inputs into the LIDAP and FOPIP particularly in the areas of organization and training;

d. Conduct visits and provide advisory services and technical assistance to the cities during planning, assessment and strategy development sessions particularly in the areas of organization and training;

e. Coordinate with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating;

f. Coordinate with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization;

g. Assist the International Organizational Development and Training Specialist to prepare and implement the Training Plan and manage the conduct of the various workshops including the participation of the various experts in each workshop. In country workshops

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will be provided in Utility Management, Technical Training, Project Management and Sector Management workshops;

h. Liaise with the Indonesia Waste Water Institute (IWWI) for the participation of the MSMIP cities in its Training and Certification Program; and

i. Other duties as requested by the Team Leader. 6. Regulatory and PPP Specialist

a. Assist the International Regulatory and PPP specialist in the LIDAP and FOPIP

implementation in the 4 cities; b. Assist the International Regulatory and PPP specialist provide technical inputs into the

LIDAP and FOPIP particularly in the areas of regulation and PPP; c. Conduct visits and provide advisory services and technical assistance to the cities during

planning, assessment and strategy development sessions particularly in the areas of regulation and PPP;

d. Assist the International Regulation and PPP Specialist in developing periodic development indicators particularly in the areas of regulation and PPP that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

e. Assist the International Regulation and PPP Specialist to monitor institutional development and progress of cities and SDOs based on the targets in the development indicators particularly in the areas of regulation and PPP;

f. Assist the International Regulation and PPP Specialist prepare the necessary training materials and conduct training on regulation and PPP for the in- country workshops on Utility Management, Technical Training, Project Management and Sector Management;

g. Coordinate (i) with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating, and (ii) with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization; and

h. Perform other duties as requested by the Team Leader. 7. Financial / Accounting Specialist

a. Assist the International Business/ Financial Planning Specialist develop the business

model for the SDO that will ensure sustainable wastewater operations; b. Assist the International Business/ Financial Planning Specialist develop a dynamic

financial model that can be updated by the SDO to help them plan, strategize and monitor performance;

c. Be part of the team assisting the Organization Development and Training specialist in the LIDAP and FOPIP implementation in the 4 cities;

d. Provide technical inputs into the LIDAP and FOPIP particularly in the areas of business and financial planning;

e. Conduct visits and provide advisory services and technical assistance to the cities during planning, assessment and strategy development sessions particularly in the areas of business and financial planning;

f. Assist the Organization Development and Training Specialist in developing periodic development indicators particularly in the areas of business and financial planning that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

g. Monitor institutional development and progress of cities and SDOs based on the targets in the development indicators particularly in the areas of business and financial planning;

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h. Prepare the necessary training materials and conduct training on particularly in the areas of business and financial planning for the in- country workshops on Utility Management, Technical Training, Project Management and Sector Management;

i. Coordinate (i) with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating, and (ii) with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization; and

j. Other duties as requested by the Team Leader.

8. Community Development Specialist

a. In coordination with the Business/Financial Planning Specialist and the Customer Service Specialist, design and implement a social marketing strategy to achieve universal coverage in target sites;

b. Assist and advise the city in preparing strategy and tools to ensure that all are reached for sanitation connection and that messages are refined for effective communication with specific stakeholders such as those in sanitation hot spots, open defecators, and low income sectors including vulnerable groups, commercial sector, etc. by incorporating lessons and resources developed by such programs such as the CDTA MSHMP in its Sewerage project in Jogjakarta;

c. Be part of the team assisting the Organization Development and Training specialist in the LIDAP and FOPIP implementation in the 4 cities to strengthen MSMIP’s operations in these areas and in its relevance in contributing to poverty reduction and inclusive growth;

d. Provide technical inputs into the LIDAP and FOPIP particularly in the area of community development;

e. Conduct visits and provide advisory services and technical assistance to the cities during planning, assessment and strategy development sessions particularly in the area of community development;

f. Assist the Organization Development and Training Specialist in developing periodic development indicators particularly in the area of community development that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

g. Monitor institutional development and progress of cities and SDOs based on the targets in the development indicators particularly in the area of community development;

h. Strengthen pro-poor targeting strategies and capacity building on sanitation management for implementing agencies, communities and village governments on sanitation management;

i. Assess the training needs of village structures and beneficiary women and men in sanitation coverage areas. Design and supervise community-level training for adequate technical and skills training on gender, livelihood development, hygiene and sanitation promotion for household and village governments;

j. Prepare the necessary training materials and conduct training on particularly in the area of community development for the in- country workshops on Utility Management, Technical Training, Project Management and Sector Management

k. Coordinate (i) with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating, and (ii) with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization; and

l. Other duties as requested by the Team Leader.

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9. MIS Specialist

a. Assist the International MIS Specialist in reviewing and revising (or establishing) the MIS system in the city/ UPTD/ SDO for improved sanitation management;

b. Be part of the team assisting the Organization Development and Training specialist in the LIDAP and FOPIP implementation in the 4 cities;

c. Provide technical inputs into the LIDAP and FOPIP particularly in the area of MIS d. Conduct visits and provide advisory services and technical assistance to the cities during

planning, assessment and strategy development sessions particularly in the area of MIS; e. Assist the Organization Development and Training Specialist in developing periodic

development indicators particularly in the area of MIS that will chart the city and SDO’s progress towards the capacity development targets of establishing a supportive sector and an effective SDO;

f. Monitor institutional development and progress of cities and SDOs based on the targets in the development indicators particularly in the area of MIS;

g. Prepare the necessary training materials and conduct training on MIS for the in- country workshops on Utility Management, Technical Training, Project Management and Sector Management;

h. Coordinate (i) with the city government on the key actions in the LIDAP to reform the current environment for wastewater management and sanitation under which the SDO will be operating, and (ii) with the SDOs for the implementation of the FOPIP to assist in organizing and strengthening their organization; and

i. Other duties as requested by the Team Leader 10. Benefit Monitoring and Evaluation Specialist

a. Assist the International Benefit Monitoring and Evaluation Specialist in monitoring and evaluation of project benefits;

b. Develop and implement a Project Performance Monitoring System; c. Conduct baseline study and set up all institutional requirements in order to be able

monitor and evaluate the benefits of the project after its completion; and d. Perform other duties as requested by the Team Leader.

LESSONS LEARNED AND PROPOSALS UNDER MSMHP2

Implementation of CDTA-MSMHP project has contributed significantly and successfully to the following:

increased public access to wastewater services (off-site and on-site system); reduction, indirectly, of the rates of diarrhea; increased number of waste water house connections though active social marketing,

called Micro-Marketing, for which a detailed methodology was developed and applied successfully;

the preparation for and establishment of institutions to manage the sanitation systems: the Directorate of Water Waste in PDAM Tirtanadi, the BLUD IPAL Sewon in APY, and the waste water UPTD in Makassar;

Increased stakeholder involvement in the environmental health sector; and

2 Final Report: ADB Project ID Nr.: INO 39071-04 Capacity Development for Metropolitan Sanitation Management and Health Project (CDTA-MSMHP), 31st March 2013.

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Involvement of women in all aspects of wastewater management has met minimum requirements set by ADB.

The following proposals were made:

Strong support from local governments is very much required to support sustainable O/M of communal wastewater installations;

Stronger advocacy and training is required for stakeholders at central and local level to achieve proper Gender Awareness in wastewater management;

Continued financing support is required for FOPIP and LIDAP implementation. To meet the targets of the FOPIP and LIDAP support from related institutions (PDAM local governments and the city of Makassar) is required;

Setting up a wastewater tariff at full cost recovery level cannot yet be realized in Kota Medan and Yogyakarta. This is caused by i) the low number of household connections (HCs), and ii) insufficient local government commitment, e.g. to allocate funds in the budget to subsidize the addition of a new HCs. iii) acceleration of the installation of secondary and tertiary pipelines in the new zone;

The Micro-Marketing model has been developed successfully and is recommended to be applied more widely for faster wastewater house connection development to make investment in the wastewater sector feasible, effective and sustainable as soon as construction is completed;

More training for operators of off-site systems in Medan and Yogya, and of UPTD in Makassar is required to improve human resource capacity as needed. Subject of training required includes: technical and operational aspects of the WWTP (O&M), management aspects, and financial aspects;

Both in Medan and in Makassar, the IUWASH-USAID project provides additional support after completion of the CDTA-MSMHP project. However, for the Yogjaykarta-Bantul-Sleman area this is not the case. It is therefore recommended to meet the demand of this region for additional Micro-marketing support, using the remaining funds of the CDTA project;

It is recommended to pay sufficient attention to proper timing of a project like CDTA, when connected to a loan-financed implementation project;

ADB TA projects linked to ADB-loan projects must be better synchronised. ADB does not invest in on-site systems in the MSMHP program but still included it in the CDTA-MSMHP project scope. On the other side, ADB contributes to major investments in centralized waste-water system, but in the CDTA-MSMHP project scope, no activity was defined to increase the number of houses connected in target-areas (including service piping) to the centralized wastewater system, especially the marketing of house-connections.

INDONESIA WATER SUPPLY AND SANITATION INSTITUTE (IWSSI)

In September 2012 the Asian Development Bank appointed consultants to undertake the study ADB TA-7739 - Indonesia Water Supply and Sanitation Institute (IWSSI). Based on the Draft Interim Report3, the main objective of the project is to accelerate the building of capacity in urban water and sanitation services in Indonesia, through the creation of a training and professional certification body for water and wastewater operators that has initially been given the name of Indonesian Water Supply and Sanitation Institute (IWSSI). The project is funded by

3 Indonesia Water Supply and Sanitation Institute (IWSSI) (44090-012) (ADB TA-7739 INDONESIA: Supporting Water Operators' Partnerships), INTERIM REPORT, DRAFT VERSION rev.1, February 2013.

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an AusAid grant and is part of the ADB 44090-012 Supporting Water Operators' Partnerships (WOPs) program in Indonesia. One of the key objectives of the IWSSI is to disseminate the experiences gained in the WOPs and make the resulting knowledge products available to all operators.

A. Objectives The original Terms of Reference (ToR) of the assignment considered the creation of the IWSSI as an entity that would implement professional certification schemes for both water and wastewater utilities. However, it was agreed at inception stage that the project should focus on the much underdeveloped wastewater utilities sector. The main outcome of this project is a 5-year plan for the creation and operation of the training and certification institution, along with a set of recommendations for policy-making measures that should support and safeguard its consolidation for the benefit of the people of Indonesia.

B. Target This project specifically addresses the capacity needs of wastewater SDOs. The target group for training and certification has been defined as the managers and (supervisor) field operators who work in the operation and maintenance department of the SDO. The 5-year working plan for the proposed Indonesia Water Supply and Sanitation Institute (IWSSI)4 includes the MSMIP cities (Makassar, Pekanbaru, Jambi, Palembang and Cimahi) as one of the target groups for training in 2015. Based on recent discussions with the project consultants for IWSSI, it is possible that training of the MSMIP cities in the IWSSI will be implemented in two batches, in 2015 for the current UPTD head managing existing on site systems and in 2016 for the managers/ operators of the off-site systems to be constructed under the MSMIP. Funding for the training and certification program will be provided by the ADB WOPs project.

C. Two-Level Capacity-Building Model The proposed model covers two levels: Level 1: Standard Operation and Maintenance. Standard competency training and accreditation for operation and maintenance, covering the two job grades: manager and field operator. Level 2: Operation And Maintenance Governance. Advanced training and accreditation for management level (Manager PLUS), covering the same competences as the standard, plus a set of skills that directly address the governance gap, e.g. institutional awareness, communication, advocacy, leadership, information management, monitoring and evaluation skills and so on.

4 In September 2012 the Asian Development Bank appointed consultants to undertake the study ADB TA-7739 - Indonesia Water Supply and Sanitation Institute (IWSSI). The main objective of the project is to accelerate the building of capacity in urban water and sanitation services in Indonesia, through the creation of a training and professional certification body for water and wastewater operators that has initially been given the name of Indonesian Water Supply and Sanitation Institute (IWSSI). The main outcome of this project is a 5-year plan for the creation and operation of the training and certification institution, along with a set of recommendations for policy-making measures that should support and safeguard its consolidation for the benefit of the people of Indonesia.

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The model proposes professional certification as a means of i) testing the level of competence of professionals; ii) defining the minimum professional standards for certain roles; and iii) incentivizing the pursuit of continuing development among staff in the sector, based on the idea that the certification –provided that it has credibility and good reputation in the sector- will serve as a differentiating element of professional excellence. The credibility of the certification depends on two factors: 1) Its starting credibility, given by the initial endorsement to the certification from most major sector stakeholders. 2) Its practical value on a continuing basis, rooted in the measures taken by sector stakeholders to incentivize –or even regulate its use.

D. Curriculum content

Training modules are being prepared for the field operator and the manager. For the field operator, there are 9 modules, to be conducted from 3 to 5 days each, or a total of 35 days. The proposed training modules include Treatment Processes, Sewer O&M, Sludge O&M, Electrical and Mechanical, Energy and Efficiency, Health and Safety, Communicating and Reporting, Condition Assessment, and Laboratory and Quality. The training is proposed to take place in the following sequence: 2 weeks training (WT) + 2 weeks work (WW) + 2 WT + 2 WW + 2 WT and certification. Total 10 weeks.

E. Training Centers It is envisaged that the training and certification activities should take place at PU technical training centers (Balai Teknik) for water and wastewater – Bekasi for the western Indonesia region and Wiyung for the eastern one- and the PIP2B province centres in the later part of the program, assuming that these facilities will be available.

F. Next Steps Details of the model and the implementation plan will be in the Final Report for the IWSSI project, issued in May 2013.

CONCEPT FOR A BIO-SOLIDS STRATEGY Short term On-site land application of biosolids produced in wastewater treatment is recommended for WWTPs with sufficient land areas. As all the proposed WWTPs will have septage disposal facilities, this will also apply to those septage solids deposited at the WWTPs. Where land space is limited, sludge disposal should be off-site, either by application to nearby agricultural lands or by landfilling. Similarly, septage collected from septic tanks that are not deposited at the WWTPs, for instance before they are constructed, can be deposited at the rehabilitated Bakung IPLT at the landfill. Medium term With the increasing demand for landfill space to accommodate solid waste, the management options for bio-solids should rely less on landfill disposal. Sludge management options should take advantage of the high organic and nutrient content of the residuals from wastewater and

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septage treatment processes and endeavour to embrace strategies that recycle these valuable nutrients. Specific Indonesian requirements for the management of bio-solids have not yet been identified. A bio-solids grading system is therefore recommended for residuals intended for land application and landfilling, particularly is used with / for food crops. This grading system should consider the local conditions (soil type, climate, land use) in Indonesia. Long term The establishment of a management program and marketing strategies for the bio-solids will address the disposal issues in the years to come. These program and strategies should address bio-solids regulation issues, land availability, economic factors involved and promotional/information drives among end-users (farm and vegetable patch owners).

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DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Targets and Indicators with Baselines

Data Sources and Reporting Mechanisms Assumptions and Risks

Reduced pollutant discharges to the environment In the participating cities.

By 2020 a total of 312,000 people and 12,800 businesses will be connected to off-site wastewater collection systems new facilities in Cimahi, Jambi, Makassar, Palembang and Pekanbaru. Baseline of 0 people connected to off-site facilities in 2013. A potential BOD5 loading reduction of about 21.6 tons/day will be achieved by 2020.

National socioeconomic survey statistics (SUSENAS). Community Sanitation Strategies (CSS) Surveys held on bi-annual basis.

Assumptions • Central and local governments

continue to prioritize reduction of wastewater and environmental pollution in urban areas.

• Grant resources to be mobilized for surveys (base-line and at Project completion).

Risks • Waste disposal practices of

households, industries and commercial establishments outside of project area may reduce expected impact of project on environmental pollution of rivers, waterways and groundwater.

• Fluvial flood occurrences more extreme than predicted resulting in sewer and WWTP washout with consequential pollution.

Outcome Increased connection of the population to improved wastewater services in the participating cities

A total of domestic house connections to central sewer system by 2020

Cimahi – 8,870 Jambi – 17,600 Makassar – 9,000 Palembang – 19,000 Pekanbaru – 15,800

Baseline of 0 connections in 2013 70,270 households connections to the central sewer systems by 2020, of which 10% are poor and female headed households A total of commercial house connections to central sewer system by 2018

Cimahi – 1,000 Jambi – 2,570 Makassar – 5,400 Palembang – 2,400 Pekanbaru – 1,470

Baseline of 0 connections in 2013. 64 community based sanitation systems, aded to existing, completed by 2018. Open defecation in the sewered areas will reduce from 10% to 3% in 2020.

Data on sanitation provided by the regional body for planning and development (BAPPEDA) National socioeconomic survey statistics (SUSENAS). Project Performance Monitoring System, (PPMS), including sex disaggregated indicators and indicators for connection of poor and vulnerable groups such as women-headed households by the Project Executing Agency.

Assumptions • City governments sufficiently • resourced to implement project and

provide adequate subsidy • Urban communities are committed to

connect to sewer system and do connect

• Wastewater tariffs cover at least O&M cost

Risks

• Delay in project implementation • Slow progress in community

mobilization • Awareness programs not well

implemented • House owners do not connect

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Outputs 1. Infrastructure development for Off-Site Wastewater Systems completed.

Length of trunk mains and main sewers laid by 2020: Cimahi – 7.6 km Jambi - 14.6 km Makassar - 16.4 km Palembang – 13.9 Km Pekanbaru - 13.6 km From a baseline of 0 sewers in 2013

All Sub-Project wastewater treatment works implemented by end of 2016 Cimahi – 11.1 Ml/d Jambi - 15.0Ml/d Makassar – 19.1 Ml/d Palembang – 23.1 Ml/d Pekanbaru - 14.7 Ml/d From a baseline of 0 WWTP in 2013. Construction contracts with at least 35% qualified local workers, with preferential hiring from local areas of low income and poor hygiene conditions. All the poor and female headed households connected access subsidized connection fees and monthly tariffs. Public consultations on sewerage connection held, with 40% women's participation.

Data provided by CPMU. Project Performance Monitoring System (PPMS) by the Project Executing Agency.

Assumptions • Continued commitment of city

governments • DED completed to time and of good

quality • Construction Contractors implement

pipelines, pumping stations and wastewater treatment plants (WWTP) to timescale

• AMDAL approval received on time • WWTP AMDAL and effluent

discharge license approval

Risks

• Slow progress in community mobilization

• AMDALs delayed • Discharge licenses not given • Lack of domestic water supply

makes sewerage connection not viable for some households in Cimahi and Pekanbaru

•

2. Project Implementation Support institutionalized.

. Sex disaggregated indicators established in Project Performance Monitoring System by 2015 By 2018, 10% increase in female staff in management positions in EAs/IAs/ SDOs. Capacity building activities on hygiene promotion, education, planning and participatory monitoring completed (40% participants women)

Data provided by CPMU. Project Performance Monitoring System (PPMS) by the Project Executing Agency.

•

Activities with Milestones Inputs

1. Output 1: Infrastructure development for Off-Site Wastewater Systems 1.1 DED for the trunk mains, main sewers and WWTP

complete by Q1 2014 1.2 Award of CDTA contract by Q2 2014

1.3 Award of PISC contract by Q3 2014

1.4 Award of goods and civil works contracts (all main

Loan ADB: $120.00 million Item Amount ($ million)

Civil Works Equipment Consulting Services Project Implementation Support

106.31 0.30

10.44 2.95

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Annex D

Activities with Milestones Inputs

sewerage and WWTP ) by Q4 2014

1.5 Construction of house connection pipes to the lateral sewers commenced by Q3 2015

1.6 First customer properties connected to the piped system and start of operation of sewerage system and treatment plant by end of 2016

1.7 Completion of the main elements of the wastewater collection systems and WWTP by end of 2016

1.8 Completion of the lateral systems and connecting chambers by Q3 2018.

2. Output 2: Institutionalized Project Implementation Support

2.1 Completion of CDTA contract by end of 2016

2.2 Completion of PISC contract by Q4 2018

2.3 Non-government organization support as partners to facilitate development of on-site sanitation by 2017

Government: $79.19 million Item Amount ($ million)

Land Acquisition Involuntary Resettlement

6.49 1.62

Civil Works Equipment Materials Consulting Services Project Implementation Support Interest During Implementation Commitment Charges

53.52 0.03 0.91 7.52 0.33 8.44 0.32

Cofinancing: $48.83 million

Item Amount ($ million)

Civil Works Consulting Services

40.96 7.87

ADB = Asian Development Bank, AIF = ASEAN Infrastructure Fund, AMDAL = Indonesian Environmental Assessment System report, CDTA = Capacity Development Technical Assistance, CPMU = central project management unit, DED = detailed engineering design, INDII = Indonesia Initiative (Australian Aid), km = kilometer, LG = local government, OCR = ordinary capital resources, O&M = operation and maintenance, PISC = Project Implementation Support Consultant, WWTP = wastewater treatment plant. Source: Asian Development Bank

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