83099 Country Level Collaboration in the Water and Sanitation Sector A Case Study of Indonesia March 19, 1993 A number of people have contributed to this case study including: Ira Nastiti WSTCF Richard Cross CWSP Saad Ali Basaib Bappenas Freddy Tulung Bappe?as Sri Redzeki Cipta Karya Robert Boydell RWSGEAP Richard Pollard RWSGEAP Wilfrido Barreiro RWSGEAP Mohammed Y ahiya RWSGAEP Ismail Najjar WSTCF The views expressed by the contributors are their own and do not represent the views ofthe Government oflndonesia, UNDP, the World Bank or CIDA. EXECUTIVE SUMMARY Sector Planning and Strategies for the 1990's. Sector planning in Indonesia is based on broad guidelines of national policy which are stated in the five-year national development plans (REPELITAS) which are ratified by Parliament at the commencement of each 5-year planning cycle. Based on these broad development guidelines, each responsible sector department prepares its own national strategic plan. During the previous REPELITA IV (1984 -1989), the Directorate-General ofHuman Settlements, Department ofPublic Works, prepared a strategy for urban development aimed at facilitating rational planning in order to utilize resources and funds as effectively as possible. This resulted in a strong development urban focus and the launch of integrated Urban Development Infrastructure Development Projects (IUIDP). Following this a sub-sector strategy for water supply, waste water, drainage and solid waste management was prepared which emphasized appropriate technology selection, alternatives for system development and realistic target setting. \Vhereas the present REPELIT A V gives strong emphasis to rural water supply and sanitation. REPELIT A VI which is presently being formulated is expected to maintain the rural emphasis. Repelita V water supply and environmental sanitation objectives are: the expansion of water supply coverage to 80% in urban areas and 60% in rural; strengthening of local water enterprises; control of the pollution; increased community participation; raising the awareness of the need for safe human waste and waste water disposal; and encouraging private sector involvement in construction and renovation of water supply and waste disposal systems. Government agencies involved in Water and Sanitation Several Government departments and agencies are involved in the provision of water and sanitation. Their interests range from policy formulation and planning, provision of finance, through project identification and project implementation. The main agencies are the Department ofPublic Works, the Department ofHealth, the Department ofHome Affairs, the Department ofFinance and BAPPENAS (National Development Planning Agency). In addition, the Department of Population and Environment is involved in the environmental aspects ofthe development projects. The Department ofPublic Works as the lead sectoral agency provides th.e main inputs to sector policy formulation based on the national plan guidelines. However, a working group on community water and sanitation, with members from the Departments ofHealth, ofHome Affairs, and ofPublic ~1 orks, is the main forum in assessing the status of sector development and reviewing current policy. The role of the Department ofHome Affairs is to establish and support local government institutions and the local water enterprises (PDAM). The National Development Planning Agency is involved in establishing the national development plan for all sectors, including water and sanitation. In addition, the agency is also in-charge of approving or rejecting all foreign assistance either from bilateral or multi-lateral agencies. Other Participants in CLC A number of multilateral and bilateral donors have been supporting water and sanitation sector development. These include Australia (AIDAB), Belgium, Canada (CIDA), Denmark (DANIDA), France, Germany (GTZ-KFW)), Japan (JICA & OECF), the Netherlands (DGIS), United Kingdom (ODA), USA (USAID), the World Bank, Asian Development Bank, UNDP, UNICEF and WHO. 11 Both national and international NGOs are also active in the sector. They undertake a wide range of activities and tasks, including direct provision of services and materials. At times, they act as agents of the government undertaking education and extension components of projects. International NGOs with particular interest in water and sanitation include CARE (Canada), OXFAM, the Ford Foundation and others. National NGOs (yayasans) include: YIS, the Melati Foundation, Yayasan Mandiri, YP:MD, LBS, Dian Desa, Bina Swadaya and LP3ES. Private sector involvement in the sector is still very limited. The main involvement is in the field of consulting, designing, contracting, manufacturing or as suppliers of materials & equipment. The private sector agencies work at different levels. At national level international companies can be seen whereas at the local level, there are many small-scale contractors and builders who work informally. Mechanisms of CLC In Indonesia A number of important CLC mechanisms were found to exist: Intra-government; Government to Donor; Donor to Donor; NGO and Private Sector based Collaboration; and informal CLC. These linkages were found to be a significant factor in: Coordinating Urban Development; coordinating Environmental Improvements; and information sharing. Also in policy formulation, the planning process and project preparation and implementation. Findings Much of the informal collaboration that takes place is through "networking''. Links are established by individuals in the various agencies involved in the sector and information exchange takes place on a one to one basis. The extent and importance of this informal link should not be underestimated. N[oreover there are four subject areas in which CLC is found to be particularly important in Indonesia. One is related to the rapid urbanization that is taking place. The second is related to the establishing sustainable operation and maintenance ofwater and sanitation facilities. The rapid growth of urban areas has led to the development of the IUIDP projects that have many components and many actors. Good CLC has been important in implementing these programs particularly donor to government an~ central government to local government. Similarly as the urban concentrations have grown so has the installation of water and sanitation facilities which require operating and maintaining to ensure their sustainability. This illustrates the need for good CLC between local government and community and the private sector. CLC was also found to be an important tool in promoting the concept ofwomen having an important role in development. Similarly CLC was seen to be important in applied research initiatives which involved government, the private sector and academia. ll1 CONTENTS EXECUTIVE SUMMARY ii TABLE OF CONTENTS iv ACRONYMSv INTRODUCTION 1 1. BACKGROUND 1 1.1 General Country and Sector Information and Data 1 1.2 Government agencies involved in Water and Sanitation 2 1.3 Donors involved in water and sanitation 2 1.4 The Role ofExternal Support Agencies (ESAs) 3 1.5 NGOs Involvement in Water and Sanitation 3 1.6 Private Sector Involvement in Water and Sanitation 3 2. TYPES AND MECHANISMS OF CLC IN INDONESIA 4 2.1 Intra-government Collaboration 4 2.2 Government-government linkages 4 2.3 Government - Donor Collaboration 4 2.4 Donor - Donor Collaboration 4 2.5 NGO Collaboration 5 2.6 Private Sector Collaboration 5 3. COORDINATION AND INFORMATION SHARING 7 3.1 Coordinating Urban Development 7 3.2 Coordinating Environmental Improvements 7 3.3 Collaboration through Information Sharing 7 3.4 National Data Bases 8 4. SECTOR PLANNING AND POLICY FORMULATION 9 4.1 The Policy Formulation and Planning Process 9 4.2 Ad Hoc Working Groups 10 4.3 Inter-departmental Working Groups and Committees 10 4.4 The Blue Book and the Consultative Group for Indonesia 10 5. PROJECT PREPARATION AND IMPLEMENTATION 11 5.1 Implementing Urban Projects 11 5.2 Private Sector Participation in Umbulan springs Water Source Development 12 5.3 Collection of Jakarta Solid Wastes by PT. Sor. 12 6. INFORMAL COLLABORATlbN 13 6.1 Water Sector Discussion Forum 13 6.2 Networking 13 7. LESSONS LEARNED 14 8. FINDINGS 9. FUTURE CHALLENGES TABLES 1 Summary ofRepelita V Water Supply and Environmental Sanitation Objectives 9 2 Membership ofiiSP Collaboration Group 12 IV APPENDIXES A ESAs WATER AND SANITATION PROJECTS IN COOPERATION WITH THE MINISTRY OF PUBLIC WORKS B EXAMPLES OF GOOD COUNTRY LEVEL COLLABORATION IN INDONESIA B 1 The Community Water Supply & Sanitation Project 17 B2 The Water Sector Technical Cooperation Fund (WSTCF) 17 B3 Water Supply and Sanitation Project for Low Income Communities 18 Map of Indonesia v ACRONYMS ADB Asian Development Bank AIDAB Australian International Development Assistance Bureau BAPPEDA Regional Development Plan Agency (Badan Perencanaan Pembangunan Daerah) BAPPENAS National Development Plan Agency (Badan Perencanaan Pembangunan Nasional) BOT Built-Operate-Transfer CARE Cooperative for American Relief Everywhere CBO Community Based Organization CGI Consultative Group for Indonesia CIDA Canadian International Development Agency CLC Country Level Collaboration CPMO Central Project Monitoring Office CWSP Community Water and Sanitation Project DANIDA Danish International Development Agency DGHS Directorate General ofHuman Settlements DGIS Dutch Government International Support DGWRD Directorate General ofWater Resources Development ECC Executive Coordinating Committee ESA External Supporting Agency FCC Functional Coordinating Committee GNP Gross National Product GOI Government of Indonesia GON Government ofNetherland GTZ Gesselschaft fur Technische Zusammenarbeit D3RD International Bank for Reconstruction and Development IGGI Inter Governmental Group for Indonesia liSP IUIDP Implementation Supporting Project I1\1G IUIDP Monitoring Group TI'l"GI International NGO Forum on Indonesia ITB Bandung Institute ofTechnology (Institut Teknologi Bandung) IUIDP Integrated Urban Infrastructure Development Project JICA Japan Inter11ational Cooperation Agency KFW Kreditanstalt Fur Wiederaufbau km kilometer lis liter per second LBS Institute for Self-effort Development (Lembaga Bina Swadaya) LP3ES Institute for Social and Economic Research, Education and Communication (Lembaga Penelitian, Pengembangan, Penerbitan Ekonomi dan Sosial) MIS Management Information System NGO Non Governmental Organization NUDS National Urban Development Strategy O&M Operation and Maintenance ODA Overseas Development Administration (United Kingdom) OECF Overseas Economic Cooperation Fund OXFAM Oxford Committee for Famine Relief PDAM Local Water Enterprise (Perusahaan Air Minum Daerah) PMU Project Management Unit PPMU Provincial Project Monitoring Units PROKASIH Clean River Program (Program Kali Bersih) PSWG Project Selection Working Group Vl REPELITA Five Yearly Development Plan (Rencana Pembangunan Lima Tahun) RWSGEAP Regional Water & Sanitation Group for East Asia and the Pacific RWSS Rural Water and Sanitation Services SDC Swiss Development Cooperation SUSENAS National Socio-Economic Survey (Survey Social Ekonomi Nasional) TKPP Urban Development Coordination Team (Tim Koordinasi Pembangunan Perkotaan) UNDP United Nations Development Program UNICEF United Nations Children's Fund US AID United States Agency for International Development USIS United States Information Services WALHI Environmental Forum (Wahana Lingkungan Hidup) WASIN Water and Sanitation Information Network WG Working Group WHO World Health Organization WSSPLIC Water Supply and Sanitation Project for Low Income Communities WSTCF Water Sector Technical Cooperation Fund YIS Indonesian Prosperity Foundation (Yayasan Indonesia Sejahtera) YP:MD Village Community Development Foundation (Yayasan Pembangunan Masyarakat Desa) VII INTRODUCTION The purpose of this case study is to develop a better understanding of the opportunities and benefits of country level collaboration (CLC), as well as the constraints affecting this process in the water and sanitation sector in Indonesia. The case study was prepared by a number of people involved with the sector representing both the Government oflndonesia (GOI) and external support agencies (ESA). CLC occurs in many different forms, both formal and informal, and at a number oflevels. This case study reviews a number of important examples of CLC in Indonesia and provides a discussion of their positive and negative aspects. But it is not necessarily a complete inventory of all CLC that takes place. In Indonesia, new CLC mechanisms have recently been established. Due to certain circumstances, the Inter-Governmental Group for Indonesia (IGGI) was recently abandoned and replaced with the Consultative Group for Indonesia (CGI) chaired by the World Bank. A new inter- ministerial coordination mechanism has also been established to ensure good collaboration among the Departments of Public \Vorks, of Health and ofHome Affairs in accelerating the provision of water and sanitation in rural areas. Prior to this, the existing Coordinating Team for Integrated Urban Infrastructure Development (TKPP) was strengthened in order to be more effective in coping v.rith the problems faced by regional government and municipalities in developing its public infrastructure. 1. BACKGROUND 1.1 General and Sector Information and Data Indonesia is an archipelago of more than thirteen thousand islands (large and small) with the population of about 180 million people. The country is divided into 27 provinces, 241 regencies, 55 municipalities, 3,625 districts and 67,033 sub-districts. Presently about 37% ofthe population live in urban areas; annual urban population growth rate is high at over 5 percent. However, the national average annual population growth rate is 1.97 percent. Fifty-seven percent of population live on the islands of Java and Bali. Indonesia has benefitted from a period of sustained economic growth that began in the mid-1970s starting with its First Five Year Development Plan. In 1970, its GNP per capita was only about $150. By the end ofthe Fifth Five-Yhr Development Plan, the GNP per capita is estimated at US$ 570. Economic growth has averaged 7% over the past 5 years. Vvater and sanitation is a sub-sector ofthe housing and social welfare sector in Indonesia. The first Sl~Ctor priority has been given to the provision of safe and adequate water supplies as a basic human need. Sanitation, which includes drainage, waste-water and excreta disposal and solid waste management, has been given relatively limited attention compared to water supply. In 1989, the urban population served by the GOI program with piped water was estimated at 50 million distributed in 405 cities and towns and about 800 semi-urban areas and district capitals. The water supply program has focused on the rehabilitation of existing systems, optimizing the available capacity of water treatment plants, extension of existing systems, and construction of new systems. Priority is given to serving low income groups and in areas ofwater scarcity. However, in rural areas, GOI programs to install hand pumps have met with limited success due to lack of community participation and other neglects. 1 In 1990, overall drinking water supply service coverage was estimated to be in the range of35-40 %in urban areas and 30% in rural communities. 1 In many areas, public drinking water supplies do not meet standard criteria for bacteriological and chemical quality. Also, different sources are often used for drinking and for bathing and washing. In both urban and rural areas, open wells continue to be the main source of water for both drinking and for washing/bathing. Owing to the high · population densities in urban areas, wells cannot be sufficiently separated from sewage effluent leaching facilities and faecal contamination of such supplies is widespread. Boiling of drinking water or provision ofbottled water is widely practised. A significant proportion of the urban population is therefore consuming safe drinking water but bathing/washing in polluted water. In 1990, it was estimated that about 40% ofurban dwellers and more than 55% of rural residents obtain drinking water from wells2. Sanitation coverage in Indonesia is more difficult to assess. Using figures from the 1989 SUSENAS survey, it appears that coverage with adequate sanitation is in the range of 60 - 64% in urban areas and 30- 36% in rural areas. Due to the high population densities, wells cannot be sufficiently separated from sewage effluent leaching facilities and fecal contamination of such supplies is widespread. However urban coverage appears to have grown markedly over the past 20 years, whereas there has been little change in rural areas during the same period. 1.2 Government agencies involved in Water and Sanitation Several Government departmentsand agencies are involved in the provision of water and sanitation. Their interests range from policy formulation and planning, provision of finance, through project identification and project implementation. The main agencies are the Department ofPublic Works, the Department ofHealth, the Department ofHome Affairs, the Department ofFinance and BAPPENAS (National Development Planning Agency). In addition, the Department of Population and Environment is involved in the environmental aspects ofthe development projects. The leading agency for the sector is the Department ofPublic Works which assists provincial and town authorities in identifYing their needs for water and sanitation and implementing and monitoring projects. The role of the Department ofHome Affajrs is to establish and support local government institutions and the local water and sanitation enterprises (PDAM, PDAL). Currently, all regencies are required by law to establish such enterprises and be responsible for water and sanitation development within the regency. PDAMs and PDALs manages the operation and maintenance of the water and sanitation systems. In many towns, the local water enterprise has been able to become self-financing and able to fulfil the increasing needs for clean water. The Department ofHealth is responsible for monitoring the water quality, health education and public health in general. The National Development Planning Agency is involved in establishing the national development plan for all sectors (including water and sanitation), the annual development programs and coordinating the activities of the line departments. In addition, the agency is also in-charge of approving or rejecting all foreign assistance either from bilateral or multi-lateral agencies. 1.3 Donors involved in water and sanitation Since the start ofindonesia's accelerated development activities in the early 70's, a number of multilateral and bilateral donors have been supporting the water and sanitation sector development. These include Australia (AIDAB), Belgium, Canada (CIDA), Denmark (DANIDA), France, Germany (GTZ-KFW)), Japan (JICA & OECF), the Netherlands (DGIS), United Kingdom (ODA), USA (USAID), the World Bank, Asian Development Bank, UNDP, UNICEF and WHO. Annex A 1Asian Development Banlc Water Supply and Sanitation Sector Study. 2Census data 2 describes the types of projects that are supported by donor agencies in the Department ofPublic ·works. Japan and, until recently, the Netherlands, have been the leading bilateral grant funding agencies in the sector, whereas the World Bank, the Overseas Economic Cooperation Fund of Japan (OECF), and the Asian Development Bank are the leading sources of loan assistance. Almost all provinces have been provided foreign assistance through large and small projects. 1.4 The Role of External Support Agencies (ESAs) Generally, the main role ofESAs in the policy formulation and planning process has been to assist GOI with the detailed planning of projects or activities which make up the broader national- and medium-term plans. For example, IUIDP projects which have been supported by many bilateral and multilateral agencies. ESAs have had a minor role in supporting the broader policy planning process. For example, UNDP funded and supervised the preparation of a study titled "Preparation ofNational Strategic Plan for the Human Waste and Waste Water Disposal Sub-Sector for Urban Areas" in 1988. This report was used by GOI in the preparation of the national strategic plan for REPELIT A V. The report which was prepared by a team of international and national consultants not only formed the basis for the national sanitation strategic plan but also contained a considerable amount of information useful in the design and implementation ofvarious sanitation projects during the REPELIT A. ESAs have also supported feasibility and planning exercises for large-scale individual projects. For example, JICA prepared a comprehensive feasibility report on the management of urban drainage and waste water disposal forJakarta in 1990. This report led to the provision of funding from Japan for the first stage of a project to provide the necessary infrastructure. 1 . 5 NGOs Involvement in Water and Sanitation Both national and international NGOs are active in the sector. They undertake a wide range of activities and tasks, including direct provision of services and materials. At times, they act as agents ofthe government undertaking education and extension components of projects. They also assist in project design or preparation; and, in many cases, act as advisers and consultants to donors and the GO I. There are at least 55 legally established NGOs operating in Indonesia. The most prominent 25 of these were reviewed in a survey commissioned by the World Bank3.. The funding sources ofthese NGOs are mainly bilateral donors and charitable donations. The NGOs work throughout the country but many have special areas of interest and regional concentrations, particularly the national NGOs. Several of the larger NGOs also act as umbrella organizations for smaller NGOs and other interest groups. An International NGO Forum O!l Indonesia (INGI) has been established with external support. International NGOs with particular interest in water and sanitation include CARE (Canada), OXFAM, the Ford Foundation and others. National NGOs (yayasans) include: YIS, the Melati Foundation, Yayasan Mandiri, YPMD, LBS, Dian Desa, Bina Swadaya and LP3ES. 1 . 6 Private Sector Involvement in Water and Sanitation Private sector involvement in operating the water utility systems is still very limited. This is because water in Indonesia is generally not considered as a full commercial commodity. Their main 3 "Profile of 25 Indonesian NGOs (Non Governmental Organization), Submitted to The World Bank, Buftheim Renny, Integrated Development and Socio-Cultural Analysis." 3 ·involvement is only in the field of consulting, designing, contracting, manufacturing or as suppliers of materials & equipment. They work through agencies at different levels. At the local level, there are many small-scale contractors and builders who work informally. National contractors are ratea and registered by GOI based on their capacity to undertake construction works. Supply of goods and materials is regulated by government through standards and specifications. Large scale water vending is present in the major urban centers. 2. TYPES AND MECHANISMS OF CLC IN INDONESIA 2.1 Intra-government Collaboration In Indonesia, mechanisms and structures for coordination and information sharing within the water supply and sanitation sector are characterized by an emphasis on intra-government coordination and to a lesser extent, with the ESA community as a group. GOI tends to coordinate sector development initiatives on a project by project basis (with some notable exceptions). 2.2 Government-government linkages The GOI bureaucracy has traditionally been characterized by relatively strong, vertically-structured line departments and directorates with centralized management. During REPELITA V, policy shifted towards a more integrated and decentralized way of planning and implementing development activities, largely due to the IUIDP. These policy shifts required increased collaboration among line departments and also between the central and lower levels of government. As a general rule, linkages among GOI agencies become stronger and more operational at lower levels ofthe bureaucracy. At the provincial and kabupaten (township) level and below: the bureaucracy tends to be small and effective; collaboration is both necessary to carry out tasks and is relatively easy to develop. Informal relationships among agencies tend to be stronger, as well. 2.3 Government - Donor Collaboration Individual donors and ESAs tend to establish relationships with one or more of the line departments through which they develop a series of projects. These donor-GOI linkage reflect the vertical management structure of GO I. In. order to facilitate the donor relationship, the Department of Public Works has established a Bureau oflnternational Cooperation. Similar arrangements exist in other line departments. Collaboration among GOI and ESAs has perhaps most advanced in the area ofurban development, where the IUIDP has required the coordination of a diverse range of infrastructure development activities in a programmatic manner supported by various ESAs. The TKPP has been established to review central policy on external assistance, establish priorities, review project proposals, costs and funding. This group consists of representatives from the Departments ofPublic Works, ofHome Affairs, ofFinance and BAPPENAS. 2.4 Donor- Donor Collaboration: Linkages among donors in the water supply and sanitation sector in Indonesia are mainly informal, and rely heavily on personal relations and individual contacts. Some non-sector specific linkages for collaboration have also been established. The CGI, and formerly IGGI, is the main forum for donor -donor coordination. UNDP convenes a monthly meeting of the donor community to discuss general development issues, and an informal grouping of the ESA community meets on a quarterly basis to discuss specific development themes. 4 2.5 NGO Collaboration Non-Governmental Organizations (NGOs) have been active in the water supply and sanitation sector for several decades, and prior to the mid-1970s were the principal agencies providing water supplies in rural areas. Nonetheless, collaboration among NGOs and between NGOs and GOI has been limited until recently. · The GOI encourages NGOs in their endeavors and involves them as advisors and consultants in various GOI projects. The NGOs interested in the sector can provide services similar to consulting firms and have the advantage of having good community rapport and understanding. NGOs also oiR:en act as sub-consultants to engineering firms, generally providing expertise lacking in the main consultant, such as community participation skills, etc. The main roles ofNGOs have been in community education and awareness building. NGOs now have at least two fora related to the water supply and sanitation sector through which they coilaborate with each other. The Environmental Forum (WALID) was established to enhance community participation in environmental programs, including programs for water supply and sanitation. A similar grouping, the Participatory Development Forum, was recently established with support from UNDP. This is an umbrella organization for NGOs designed to facilitate interaction among NGOs themselves and between NGOs and GO I. \Vith GOI's policy shift toward decentralization and the growing acceptance ofNGOs as partners with GOI agencies, interest in establishing formal collaborative mechanisms has developed. Recently, a national workshop was organized to look into the modalities for enhanced GOI-NGO collaboration in the water and sanitation sector. Among other findings, the consensus supported the establishment of a sectoral forum with membership from both GOI and NGO agencies. On a more operational level, larger national or regional NGOs have in recent years been looking for ways to work more closely with s:nall local NGOs and community-based organizations (CBOs). In a step to formalize this arrangement within the water supply and sanitation sector, the Department ofHome Affairs recently approached CARE to explore the potential for improving coordination and technical support to rural development initiatives of small NGOs in the Sulawesi provinces with CARE acting as an umbrella organization. The move also aims to ensure that GOI and NGO projects are integrated. Yayasan Indonesia Sehjatera (YIS), a national NGO, in order to solve funding difficulties, has formed a group with 12 other larger national NGOs in order to better collaborate with international NGOs in administering grants from funding agencies for the sector. 2.6 Private Sector Collaboration The private sector has been involved in the country development programs. Private consulting companies have been particularly involved in water and sanitation development working for both ESAs and the GO I. In the execution of many cooperation projects, such as the preparation of master plans and detailed design of schemes, the relationships formed among international and local consultants has provided a unique forum for technology transfer. It is very common for foreign consultants to form joint ventures with local engineering companies. Although done for both economic and practical reasons, it has also facilitated a valuable technology transfer function. 5 The GOI policy during the latter stages ofREPELIT A V has been to encourage private sector participation in sector development activities and in other areas where their participation can be shown to have advantages over the public sector. One approach that is being developed is to build, operate and transfer (BOT) infrastructure or facilities. A good example is the proposed development ofUmbulan Springs as a water source for the City of Surabaya. A approach similar to that in the Umbulan Springs case, is being considered by the City of Semarang in central Java. 6 3. COORDINATION AND INFORMATION SHARING BAPPENAS acts as the high-level coordinator of national development, especially at the planning stage. At the provincial level, development coordination is managed by Provincial Planning Development Agencies (BAPPEDAs). BAPPEDA also has offices at lower levels such as towns and regencies (kabupaten). National development policy is used by local governments as the basis for local development planning adapted to its particular condition. 3.1 Coordinating Urban Development The Integrated Urban Infrastructure Development Program (IUIDP) which promotes an integrated approach to urban infrastructure development, requires considerable coordination and collaboration. The IUIDP Management Group (IMG) was established to help the Urban Development Coordination Team (TKPP) which is responsible for the smooth implementation, monitoring and guidance of the IUIDP. Its members are Director-level staff from the constituent departments who report directly to their respective Directors-General. The IMG chairperson reports to the chairman ofBAPPENAS. An implementation team for IUIDP comprising representatives from the BAPPEDAs, and the Bureau ofFinance, coordinates urban development at provincial level. At the town or regency level, a similar coordinating team is established which includes representatives from the local water enterprises, from public works services and the municipal finance and engineering departments. IUIDP is generally considered to be a most effective vehicle for, inter alia, intra-governmental and GOI-NGO collaboration for development of urban infrastructure. The growth of the IUIDP approach has been slowed down somewhat by the need for adjustment in the role of strong sectoral departments. The effectiveness ofiUIDP has also been hampered by the reluctance oflocal governments to provide the needed level of commitment. The IUIDP approach has required adjustments in operational, budgetary and monitoring processes. There are clear signs however, that the changes are occurring, albeit at differing rates according to the capacity of respective local governments. 3.:2 Coordinating Environmental Improvements Another example of a coordinating body established by GOI for an integrated program is the Environmental Impact Management Agency. The Department ofEnvironment and Population formed the Agency in 1990 in accordance with a Presidential Decree. The main activity coordinated by this agency in the water sector is the Clean Rivers Program (PROKASIH). At the province level, PROKASIH activities are formulated and carried out by regional working teams, consisting of local governments, research institutions, environmental study centers, universities, and other sector departments. The secretariat Ofthe working team is located at the Bureau ofPopulation and Environment of the local government. The Provincial Governor is the Officer-in-Charge; the Vice Governor is the program coordinator. 3.:~ Collaboration through Information Sharing Sharing information is the basis for CLC at any level. A high potential for fostering better collaboration by making parties aware of each others activities. However, when several of databases are being operated in one country, they can become a source of confusion. It is important to determine why information is being collected; who the end users are and what their specific needs are. With information networks, appropriate people are able to gain access. 7 Two broad types of information are shared in the water supply and sanitation sector. The first is bibliographical information, generally of a technical nature, is disseminated to facilitate the design and implementation of projects and programs. Another is sector monitoring data that is needed to assess the progress and impact of sector development initiatives and to assist sector policy formulation, planning and targeting of resources. Major bibliographical databases related to the sector are maintained by the following institutions: National universities or institutes libraries, particularly, the Institute of Technology Bandung (ITB) which is involved with the International Training Network of the UNDP/World Bank Water and Sanitation Program. National Center of Scientific Documentation in Jakarta. Information units of several embassies (USIS, for instance) in Jakarta and a few other major cities. Libraries of GOI departments in Jakarta. Institute ofResearch for Human Settlements in Bandung. Institute of Research ofWater Resources Development, for monitoring of water quality, in Bandung. Water & Sanitation Information Network (WASIN) based m Cipta Karya and the Department ofHealth. W'ithin the Department ofPublic Works, the Directorate ofPlanning and Programming manages project monitoring information through Project Coordination and Monitoring System which consists of a local area network within the Directorate-General for Human Settlements as well as a "wide area" network. All data needs for planning and coordination will be retrieved from the system. The data inputs are frcm: Units reporting to central government: PMUs, PPMUs, and CPMO Sectoral directorates within Directorate-General for Human Settlements Department of Finance Donors: their requirements, profiles, priorities, preference, ~tc. This type of data is especially useful for the appraisal of the medium-term programming of urban development, preparation offund applications, donor missions, etc. 3.4 National Data Bases At the present time, there is no comprehensive sectoral data base such as would be necessary to serve the needs of all those participating in sector development, including ESAs. For urban development, a data base is being prepared for the use ofTKPP and the IMG. BAPPENAS has recognized th~ need for sectoral data base for monitoring and as a planning tool. There is a need for central Government agencies to be able to provide information to provincial and local governments, the private sector, and external assistance agencies with timely information about existing urban and rural conditions and trends in the country. BAPPENAS is therefore considering the creation of an Urban Support Unit, with a technical library and information center to serve the TKPP and IMG, other relevant agencies, regional governments, the private sector and the ESAs to support urban development. 8 4 SECTOR PLANNING AND POLICY FORMULATION In order to better understand the potential for country level c9llaboration (CLC) in the water and sanitation sector, we should first review GOI's policy for:mulation and the national planning process. 4.1 The Policy and Planning Process Sector planning is based on broad guidelines of national policy which are stated in the five-year national development plans (REPELITAS) which are ratified by Parliament at the commencement of each 5-year planning cycle. Based on these broad development guidelines, each responsible sector department prepares its own national strategic plan. The objectives for water and sanitation in REPELITA V (1989/90- 1993/94) are summarized on Table 1. Table 1: Summary ofRepelita V Water Supply and Environmental Sanitation Objectives 1. E:-.:pansion of water supply coverage to 80% in urban areas and 60% in rural. These activities to be concentrated in 820 cities and towns and 3,000 villages with special attention to the needs of low-income groups. 2. Strengthening of local water enterprises to improve their services, administration, and operation and maintenance of water systems. 3. Reduction of unaccounted-for-water (physical and administrative leaks) 4. Control of the pollution ofraw water in river and ground sources. 5. Increased community participation in operating and maintaining infrastructure. 6. Raising the awareness of the need for safe human waste and waste water disposal both in the Government and in the communities. " 7. Developing economic mixes of appropriate technologies for human waste and waste water disposal in large and medium-sized urban areas. 8. Encourage private sector involvement in construction and renovation of water supply and waste disposal systems. 9. Improved project/program delivery and performance, including developing means of cost recovery to allow financially sustainable wide scale project/program implementation. The GOI program in water and sanitation is implemented by the Department ofPublic Works as the lead sectoral agency. The Department provides the main inputs to sector policy formulation based on the national plan guidelines. However, a working group on community water and sanitation, with members from the Departments ofHealth, ofHome Affairs, and ofPublic Works, is the main forum in assessing the status of sector development and reviewing current policy. It is the focal point for inter-ministerial collaboration. Within the Department ofPublic Works itself, the process of policy drafting starts with the individual directorates (Housing, Water Supply, Sanitation, etc) evaluating their past plans and implementation. The policy drafts are submitted to the Bureau of Planning within the Department which consolidates and formulates overall policy proposals and brings them to a discussion forum at the national level. In REPELIT A IV (1984 -1989), much of the water and sanitation sector policy was based on the 1983 Basic Guidelines on National Policy which is prepared by the People's Assembly every five years. Based on these guidelines, the Directorate-General ofHuman Settlements (a part ofthe Department ofPublic Works) prepared a strategy for urban development facilitating rational planning to utilize resources and funds as effectively as possible. The strategy was prepared after making an evaluation ofvarious aspects ofurban development: industry, transportation and roads, 9 water supply, drainage, waste water disposal, solid waste management, etc. REPELITA V was based on the 1988 Basic Guidelines on National Policy, which gave strong emphasis on rural water supply and sanitation. Following the "National Urban Development Strategy (NUDS)", a sub-sector strategy for water supply, waste water, drainage and. solid waste management was prepared by the Directorate of Water Supply and the Directorate ofEnvironmental Sanitation. This was funded through a UNDP project executed by the World Bank. The strategy emphasized appropriate technology selection, ailternatives for system development and realistic target setting. Also in 1990, the Asian Development Bank funded a Water Supply and Sanitation Sector Study of Indonesia which became the basis for its country assistance program. In accordance with the GOI's policy of decentralization, provincial governments identify their needs in the urban sector in line with the REPELIT A Funding to support these needs are provided through the national Integrated Urban Infrastructure Development Program (IUIDP) which is coordinated also by BAPPENAS. IUIDP is a medium-term program (5 years) of public infrastructure provision consis~ing of water supply, drainage, human waste disposal, solid waste management, 'kampung' improvement, urban roads, and guided land development. In the IUIDP approach, local governments identify and prioritize their overall development needs. An evaluation is then undertaken by Department officials and funding sources identified. ESAs support the IUIDP process at several levels. 4.2 Ad Hoc Working Groups In certain situations, ad hoc working groups are often established to carry out specific tasks related to sector policy and plan formulation. Also working groups are frequently used to plan and prepare individual projects. They provide a good means for inter-agency collaboration among interested GOI departments (in this case, among the Departments ofHealth, ofPublic Works, and ofHome Affairs). They also provide a focal point for the guidance and use of consultants and a means of collaboration with NGOs and the private sector. 4..3 Inter-departmental Working Groups and Committees In the past, the use oflnter-departmental working groups and committees has been limited. However, in 1991, BAPPENAS established both executive and func~ional coordination committees for the water and sanitation sector comprising the Departments ofPublic Works, ofHealth and of Home Affairs. Their function is to ensure effective coordination in every level of government and community involvement and education. Below these committees, three working groups (Technology; Community Management; and Health Education) were established to manage the proposed WSSPLIC. This project is viewed as an alternative model for future sector development activities. The working groups and other collaborative arrangements for WSSPLIC are described in Section 4. 4..4 The Blue Book and the Consultative Group for Indonesia An important financial planning mechanism is the Blue Book. In order to propose projects to the donor community for funding, BAPPENAS prepares a list (known as the "Blue Book") of projects for which external assistance is sought. The book is essentially a digest, briefly describing each project proposal, the amount of funding and type of assistance sought and the proponent agencies. The Department ofPublic Works (Bureau ofPlanning), compiles proposals for the water and sanitation sector which are conveyed to BAPPENAS for inclusion in the list. The Blue Book is the focal point for coordination of external assistance in Indonesia and is the reference document for 10 annual consultations with the d9nors community through the Consultative Group for Indonesia (CGI) which is described below. The Blue Book was developed as the focal point for discussion in the annual IGGI (later CGI) consultations. At one level, it can be seen as a simple "shopping list" of projects. However, at another level, the Blue Book is an effective way of establishing a well focused discussion between GOI and the ESAs on the range of development activities that the government would like to undertake. It sets out the overall financial and technical assistance requirements of GOI and states the local counterpart resources that can be allocated to individual projects. All this assumes the ESAs are confident that the projects represent a rational program of development. The disadvantage is that the process does not take into account an ESA own sectoral assistance priorities. Often, a great deal of work is done on preparing project digests that are not taken up. Conversely, sometimes, project digests are included in the Blue Book without much detailed preparation and it is difficult to see where they fit into the overall developmental framework. The Inter-Governmental Group for Indonesia (IGGI) which was established about thirty years ago, was driven mainly by Indonesi~'s largest bilateral ESA, the Netherlands. Because of historical links and the size of the aid program, the Netherlands took a lead in coordinating the inputs from other ESAs and in maintaining a dialogue with GOI. However, more recently, because GOI felt that the Netherlands was using aid for political leverage, GOI has since declined further development assistance from the Netherlands. In order to replace IGGI which had been the long standing GOI- Donor coordination mechanism in Indonesia, GOI requested the World Bank to establish a Consultative Group for Indonesia (CGI). A similar annual meeting format has been established and so far the new CGI has met once in June 1992. The IGGI was (and potentially CGI is) an effective mechanism for ensuring good distribution and coordination of external resources. At annual meetings, GOI presented to the ESA community a list of proposed development projects and in return received commitments of support for the coming year. The Blue Book was the key reference document for these meetings. This consultative process between GOI and ESAs was also the main forum for donor- donor coordination and collaboration. 5 PROJECT PREPARATION AND IMPLEMENTATION 5 . 1 Implementing Urban ·Projects UNDP is supporting the implementation of the IUIDP through an Implementation Support Project (liSP). Although the project's principal objective is to support the IUIDP process, it also provides a focal point for informal regular meetings ofESA and other groups that are involved in urban and related development activities. The regular meetings are considered by all who attend to be an effective collaboration mechanism. Table 2 shows the composition of the group. 11 T:able 2: Membership ofliSP Collaboration Group Project Name Funding Source Main areas of activity Municipal Finance Project USAID Assisting the GOI implement the Urban Policy Action Plan which supports fiscal decentralization and the strengthening of local government financial resources and financial management. IUIDP Implementation Support UNDP, GON, Updating of the IUIDP policy and program framework IBRD Institutional development for the IUIDP at Central and Regional Government levels; Information systems supporting TKPP and IMG, key central agencies and selected local governments. Development Studies Project II USAID Support for: macroeconomic modelling development, manpower studies, urban and regional development studies, industry and trade studies, BPS survey development and data classification analysis. Urban Development Policy and Decentralization, Credit finance of local infrastructure Finance Project (Harvard Inst. investments; Project appraisal training; Water supply for Inti. Development) finance and economics; Urban transport. Regional Water & Sanitation UNDP,IBRD, Assistance to national governments in the region for Group for East Asia & The SDC water and sanitation sector policy and strategy Pacific development, identification and design of sector projects, human resources development. Community Water and UNDP, GON, Development and testing of strategy for community Sanitation Project IBRD management and financing of sanitation and water supplies in urban areas; support project for IBRD- funded East Java-Bali Urban Development Project 5.2 Private Sector participation in Umbulan Springs Water Source Development Umbulan Springs is a water source located in Pasuruan, some 100 km east of Surabaya. In 1988 the feasibility ofusing Umbulan Springs to balance the supply of raw water from several reservoirs in East Java was studied. During this study, a proposal was developed to form a private consortium of Indonesian and English private interests to design, build and operate Umbulan Springs to provide raw water for the City of Surabaya's drinking water supply for 15 ye_ars. At the end of this period the facility would be transferred to the Government. Under this arrangement, the provincial water supply authority would not be a consortium member but would purchase raw water (some 4000 L/s) from the consortium. W"hilst the direct involvement ofthe private sector in water supply provision has been relatively recent, there is much longer experience in the sanitation sub-sector. The City of Surabaya is probably the most advanced in the country in this regard, with extensive private sector involvement in such activities as solid waste collection, septic tank sludge collection, operation of a solid waste incinerator. Another good example of private participation in sanitation is solid waste collection in Jakarta. 5.3 Collection of Jakarta's solid waste by P.T. SOR The operations ofP.T. SOR commenced in Jakarta in 1986 with a successful demonstration of city cleaning in Block M, Jakarta. It was also a good example of government- private sector collaboration which led to the awarding of P. T. SOR with the task of cleaning the Monas area as a trial. This was also successfui and was expanded to include other neighbouring areas. In a later 12 stage, P. T. SOR was awarded a contract to handle the disposal of 25% of Jakarta's daily solid waste production (some 1000 ton). This will comprise the construction and operation of a collection service and a transfer station. Waste will be collected and transported to the landfill site operated by the City of Jakarta. P.T. SOR is also considering a proposal to operate a collection and treatment service for the considerable septic tank sludge production in Jakarta. 6 INFORMAL COLLABORATION 6.1 Water Sector Discussion Forum UNDP with the assistance of the RWSGEAP has hosted a "water and sanitation sector discussion forum" attended by ESAs and other interested agencies involved in the sector. The forum meets once every two months or so and provides an opportunity to share information and ideas. For example CARE and UNICEF have made interesting and evocative presentations on their extensive sector programs to the enlightenment of other ESAs. 6 . 2 Networking :M[uch ofthe informal collaboration that takes place is through "networking". Links are established by individuals in the various agencies involved in the sector and information exchange takes place on a one to one basis. The extent and importance of this informal link should not be underestimated. 13 7 LESSONS LEARNED There are a number oflessons about country-level collaboration to be learned from Indonesia's experiences in water and sanitation sector development. Development ofthe water and sanitation sector requires good CLC because of its multiple and inter-disciplinary activities and many actors. Within GOI, lead responsibility for water supply and sanitation is mandated to the Department ofPublic Works, however, substantial aspects ofwater supply and sanitation sector development continue to fall under the responsibility of the Departments ofHealth, ofPopulation and Environment, ofHome Affairs, of Agriculture and other agencies. Among a number ofbilateral and multilateral agencies, water supply and sanitation sector support and investments represent a substantial portion of their assistance program. Hence, strong collaboration and coordination of resources at both the planning and implementation phases of sector initiatives can lead to more effective and efficient sector programs. Nonetheless, collaboration among sector agencies and ESAs has been constrained by a number of factors. a. Because of the limited representation of most donors' technical staff in Indonesia, It IS difficult for them to deal with multiple GOI agencies at various levels. They prefer to have one focal point for their discussions and negotiations. b. Conversely, GOI prefers to deal with individual donors in order to ensure good control of activities within the country. c. In addition, ESAs themselves often prefer to work individually with GOI and establish sectoral or geographical territories on which to focus inputs in order to maintain well- defined and highly visible activities. d. The vertical structure of line department management and funding channels inhibits horizontal collaboration. However, BAPPENAS plays a significant role in fostering collaboration, particularly for integrated projects and programs like IUIDP and the WSSPLIC. e. Planning and programming cycles of ESAs are not always synchronized with GOI's five- year planning cycle. f. Local and provincial governments' capacity is limited and they have to rely on support from the center. g. A more comprehensive and detailed sector development plan would facilitate better collaboration and sharing of resources. A clear understanding and acc~ptance has to be established that collaboration among various departments, supporting donors, NGOs and the private sector is essential for efficient and sustained sector development and that strong efforts have to be made to ensure that this collaboration takes place. The major factor affecting CLC is GOI's ownership and sponsorship of the process. Three ingredients are required: leadership and promotion, a sector development plan, and a framework or structure in which collaboration can take place. All this needs to be set within an environment of trust and confidence. There is a role for ESAs in supporting and facilitating collaboration beyond the traditional role of direct project support. The UNDP-supported IUIDP Implementation Support Project is a good example offacilitating CLC. The liSP provides assistance to GOI in urban project identification and formulation in which a number ofESAs partici12_ate. It also provides a forum for exchanging 14 experiences and sharing information. Similarly, the WSSPLIC project is a good example of agencies working together. In this case, a UNDP funded project supports GOI in preparing a project for \Vorld Bank funding and uses NGOs as contractors in the preparation process. CLC develops in stages. GOI should lead a process which involves confidence building and a gradual synchronization of project management systems. Appropriate interventions to maintain this process may be needed along the way. In the first stage, collaboration is largely informal. Support and GOI agencies, because of pressure to deliver project outputs, would prefer to work independently and collaborate only when convenient. In the second stage after positive results in the earlier stage the CLC concept evolves from sharing experiences to agency actions which bring to bear their own resources for common objectives. In the third stage, fundamental changes in the rationale and philosophy for support takes place. A unified approach is taken towards, for example, cost recovery, O&M responsibilities, community management of systems, etc. Coordination is more than the presence of structures or of working systems -it has a positive impact on sector effectiveness. Hence, CLC should start at the project identification and preparation phase -this ensures that everyone's interests and priorities are reflected in the resulting projects and programs. Inter-ministerial committees can be very effective bodies for collaboration among government agencies. They help to break down the vertical orientation that prevails within some of the line agencies and may be essential for planning and implementing institutionally complex projects. They are particularly effective when formed to achieve a specific objective, for example preparing or overseeing a particular project or ,program. In general, the preparation of the list of development projects (such as the Blue Book) each with its own digest of information and estimates offoreign and domestic costs demonstrates a high degree of government self-determination and commitment that is not often seen in developing countries and provides and effective basis for donor government CLC. Nonetheless, coordination ofthe sector development process might be made more effective if donor - donor collaboration were strengthened. A forum of donor agencies with a water supply and sanitation sector focus would be one good way of enhancing this collaboration and reducing the chance of donors working at cross purposes. The forum should not necessarily exclude GOI; representation from appropriate GOI agencies should be encouraged. 8 FINDINGS There are four subject areas in which CLC is found to be particularly important in Indonesia. One is rellated to the rapid urbanization that is taking place. The second is related to the establishing sustainable operation and maintenance of eater and sanitation facilities. The rapid growth of urban areas has led to the development ofthe IUIDP projects that have many components and many actors. Good CLC has been important in implementing these programs particularly donor to government and central government to local government. Similarly as the urban concentrations have grown so has the installation ofwater and sanitation facilities which require operating and maintaining to ensure their sustainability. This illustrates the need for good CLC between local government and community and the private sector. CLC was also found to be an important tool in promoting the concept of women having an important role in development. This theme could be seen in a number of CLC linkages ranging from NGOs working as agents ofgovernement resulting in village leaders realizing the value ofwomen in. water and sanitation development, to women being full members of inter ministerial working groups in which policy was formulated. 15 Similarly CLC was seen to be important in applied research initiatives which involved government, the private sector and academia. For example, the University in Jakarta is developing a vermiculture process for treating solid wastes in collaboration with the private sector and Jakarta City authorities. 9 IFUTURE CHALLENGES AND OPPORTUNITIES The extent and importance of informal "networking" as a means of collaboration should not be underestimated. Strong links are established by individuals in the various agencies involved in the sector and information exchange takes place on a one to one basis. A major challenge for each of us as individuals is to maintain and expand this. 16 APPFNniX A FSAs Cnmmunifv V\JRfAr Rnrf Sr1nifRfinn PrniAr:fs in (;oonAmfinn with fhA ~Ainisfrv nf Public Works ' ' ESAJCountry Name of Projects Objectives Products Project Locations Period Funding (US$ m) BILATERAL COOPERATION CIDAJCanada Kupang IUIDP (not started) Kupang, Timor Province OECF/Japan a. Jakarta Water Supply, Expand the service of the Jakarta Water Consultancy services and Jakarta 1985-93 36.0 Stage I Enterprise constmction b. Jakarta Water Supply, ditto, especially North Jakarta Consultancy services and Jakarta 1985-94 87.4 Stage II constmction c. Jakarta Vvater Supply ditto Consultancy services and Jakarta 1990-97 51.6 Distribution Pipeline constmction d. Feasibility study for Handle solid waste in Jakarta City Consultancy services Jakarta 1990-95 2.2 Jakarta Solid Waste Management System e. Rehabilitation of Ujung To expand the service of Ujung Pandang Consultancy service Ujung Pandang 1988-93 10.9 Pandang Water Supe_ly Water Enterprise DGIS/Holland a. Palembang Water Expand the service of Palembang Water Constmction 1988-91 7.8 Supply Enterprise b. Bandung Water Supply Expand the service of Bandung Water Constmction 17.9 Enterprise c. IKDP West Java & Aceh To enhance the quality of community life Consulting services, and West Java, and Aceh (in 29.1 through assisting local governments in town constmction of Sumatera island) sanitation strategy and planning. sanitation facilities d. 17 Small Towns Water Expand the service of local water enterprises Construction West Java 8.3 Supply e. Cirebon Small Expand the service of the local water Construction of water Cirebon, West Java 1987-91 3.9 Communities Water enterprise supply facilities in three Supply small towns I I ESAJCountry Name of Projects I Objectives Products Project Locations Period Funding (US$ m) f. IKK Water Supply Expand the service of the local water Construction and 1.8 Maluku enterprise, train the staff of water supply training projects, local water enterprises, and interim local water enterprises GTZ/Germany a. Padang Water Supply Expand the service of the Padang Water Construction Padang, West Sumatera 1990-93 12.6 Phase I Enterprise b. Kebumen Water Supply Expand the service of the Kebumen Water Consultancy services, Kebumen, Central Java 1982-92 5.8 Enterprise Construction c. Tegal water Supply Expand the service of the Tegal Water Consultancy Services, Tegal, Central Java 1984-92 15.1 Enterprise Construction d. Eight Small Towns West Expand the service of local water enterprises Consultancy services and Bukittinggi, Padang 1987-91 6.8 Sumatera Water Supply construction Panjang, Maninjau, (incl. sanitation) Muara Panas, Bonjol, Sicincin, Rao and Simpang Ampat France a. Water Treatment Plant Expand the service of the Kendari Water Consultancy services & Kendari, South East 1990-94 4.6 for Kendari Enterprise supervision Sulawesi Denmark 5 IKK Water Supply of Provide clean water for the population of semi Consultancy services, West Java 1985-93 38.0 West Java urban areas in West Java up to 1995. Enhance institutional support, the capability of the staif of local water equipment enterprises USAID!USA Housing Guarantee Loan Improve programming of urban Supporting the Throughout Indonesia 1989-93 100.0 infrastructure, water supply, drainage flood municipal financing control, solid waste, access road, and urban system, and enhancing planning assistance. local government capability in urban planning. MULTILATERAL COOPERATION IBRD a. East Java Water Supply Water supply system Surabaya area, East Java II construction ESA/Country Name of Projects Objectives Products Project Locations Period Funding , (US$ m) b. Jabotabek Urban Expand the service of the Jakarta Water Construction of Jakarta City 1991-96 190.0 Development Project II Enterprise distribution network pipes c. Jabotabek Urban Improve the environment quality of the low KIP program (incl. Jakarta, Bogor, 1991-96 61.000 Development Project III income areas in Jakarta, Tangerang and sanitation and Tangerang (West Java) Bekasi. Enhance the environment monitoring environmental of Jabotabek area protection) d. East Java Bali Urban Provide environmental sanitation facilities of Kampung improvement, Small towns and semi 1991-96 180.3 Development Project semiurban areas, and small towns in East and construction of urban areas East Java Java and Bali environmental facilities and Bali c. Sulawesi, Irian Jaya Provide the environmental sanitation facilities Kampung improvement, Sulawesi and Irian Jaya 1991-96 100.0 Development of the semi urban areas, and small towns in and construction of Islands Sulawesi, and Irian Jaya environmental facilities Asian a. IKK Water Supply in Provide water supply systems in 125 semi Construction of systems In 125 semi urban areas 1985-92 34.8 Development Central Java, South urban areas of Central Java, South Sumatera, of Central Java, South Bank Sumatera, and Lampung and Lampung. Sumatera, and Lampung b. Second Bandung Urban Improve the environment quality of the low Consultancy services and Bandung, West Java 1986-92 110.4 Development Project income areas, and provide the water supply construction system c. Second Medan Urban Provide the water supply system, and Construction Medan, North Sumatera 1989-95 175.0 Development Project environmental sanitation facilities, prioritizing low income areas d. West Java and Sumatera Provide urban infrastucture in semi urban Construction West Java and Sumatera 1990-96 124.6 Secondary Cities Urban areas of West Java, and Sumatera, water Development supply, sewerage, drainage, solid waste, Kampung improvement, market and urban road. -···--·---- ESAJCountry Name of Projects Objectives Products Project Locations Period Funding (US$ m) e. Second IKK Water Provide water supply system for semi urban Construction of systems In 150 semi urban areas 1991-95 33.0 Supply: Lampung, South areas of Lampung, South Sulawesi, Central Java, Sulawesi, Central Java, Yogya, West Nusa Yogya, West Tenggara, East Nusa Nusatenggara, East Tenggara, East Timor, Nusatenggara, East South Kalimantan, and Timor, South Central Kalimantan Kalimantan, Central Kalimantan f. Botabek Urban Provide urban infrastructure for semi urban Construction of facilities Bogor, Tangerang, 1991-96 80.0 Development areas in Bogar, Tanggerang, and Bekasi- Bekasi regencies-West West Java, water supply, drainage, solid Java waste, human waste disposal, market, kampung improvement, and local roads. ---APPENDIX B Examples Of Good Country Level Collaboration In Indonesia Three good examples of country level collaboration activities are presented below to illustrate that collaboration is possible and can be effective tool in improving sector efficiency. 8 1 The Community Water Supply & Sanitation Project (CWSP) The UNDP Community Water and Sanitation Project, which is executed by the World Bank, is a good example of country collaboration in a number ways: donor- donor, GOI - donor and project - NGO and private sector. It is jointly funded by contributions from the UNDP (25%), the Dutch Government (65%) and GOI (lq%). The project seeks to support government policy and strategy development for the water and sanitation sector, to strengthen government and community capacity and to stimulate large-scale improvements in service coverage. CWSP is promoting a national community-based approach to sanitation action planning and project implementation through demonstration projects with the local governments of Sidoarjo (East Java) and Badung and Denpasar (both in Bali). CWSP will also provide implementation models for the use in the World Bank-funded East Java and Bali Urban Development Project which supports 46 local government units including the above three. CWSP also supports capacity building at the local levels through training, social marketing and the setting up of a small-scale credit mechanism. CWSP makes extensive use ofthe expert inputs of national and international consultants, NGOs, universities and the private sector in its project activities, including institution building, social marketing, training and applied research into legal issues and technology. Through its link with the UNDP/World Bank Water and Sanitation Program, the project has been able to call upon the collective experience learned by developing countries and ESAs. M[oreover, CWSP is considered by GOI as an important vehicle for developing the capacity oflocal governments to take charge of sanitation development in line with its policies of decentralization and capacity building. EJtfective collaboration was established with the Departments ofPublic Works, ofHealth, ofHome Affairs, ofFinance and BAPPENAS. CWSP also collaborates intensively with all involved government agencies at levels ranging from provincial and local governments and with communities themselves. CWSP experiences indicate that collaboration at all levels is essential. More could be done. CWSP experience indicates the need for a body within GOI whose specific function is to facilitate collaboration at all levels. Improved collaboration would enhance GOI capacity to make full use ofESA development assistance. 8 2 The Water Sector Technical Cooperation Fund (WSTCF) The WSTCF is a CIDA grant-funded project designed to provide technical assistance and institutional support to the water and sanitation directorates at the Department ofPublic Works. It provides a highly flexible and responsive mechanism for assisting GOI in achieving its water sector objectives. The project supports project preparation, technology transfer, institutional strengthening, and consultant and contractor attachments. The five year project, which started in 1991, is executed through a Canadian consulting firm. The project collaborates with the Department through working units at the Directorates of Water Resources Development and ofHuman Settlements. At the provincial level, Public Works service departments at the local levels. These working units identifY critic2.l technical assistance needs and can propose projects for WSTCF support. WSTCF assists the work units in project identification, proposal preparation and implementation. Selection and approval starts with a Project Selection Working Group and culminates with CIDA concurrence on the level of funding requested. WSTCF uses three methods of implementation: by WSTCF project team; by sub-project contract to Indonesian consultants; or by sub-contract to other Canadian consultants. Sub-projects do not exceed the ceiling of C$ 500,000. A clear set of established criteria and conditions reflecting the Department's priorities and CIDA's sectoral policy guides the selection of the projects. The fund has generally been used for the following activities: Project Preparation Technology Transfer Institutional Strengthening Consultant and Contractor Attachment Program The project is implementing two important sub projects in the sub-sector - Administration of Foreign Aid in the Field ofHuman Settlements and System Development ofiUIDP at Central Government. An objective of the former is the creation of a date base and MIS for foreign aid administration. This output will provide needed information for government departments and ESAs for planning and coordination of foreign aid. Included in the data base will be detailed ESA profiles and tracking of disbursement of loans and grants by sub-sector and location. The latter will provide Cipta Karya with a system of reporting and monitoring ofiUIDP programs at Central level. A case study in Menado will be undertaken to test the system. All WSTCF sub projects are coordinated by the Bureau ofPlanning of the Ministry ofPublic Works which, in turn, is developing a data base on intersectoral projects implemented by the Ministry and the ESAs. The concept ofWSTCF depends on flexibility to respond to on-going needs of the Ministry ofPublic Works and thus act as an umbrella program with a pre approved budget. All! sub projects are approved by the project selection working group "PSWG" chaired by the Secretary General with members from the Bureaus of the Secretariat General, the Directorates General of Water Resources Development (DGWRD), Human Settlements, together with the Research Institutes of Water Resources and Human Settlements, Bappenas, Cabinet and the Canadian Embassy. The project has assisted with the development of the water sector in five provinces in Eastern ' have been launched; three have been completed; and four Indonesia. So far, sixteen sub-projects others will be completed shortly. Inputs and expertise were provided by local consultants working with senior and experienced experts from Canada. 8 3 Water Supply and Sanitation Project for Low Income Communities (WSSPLIC) To reach the coverage targets laid out for rural water and sanitation in REPELITA V, GOI is preparing the Water Supply and Sanitation Project for Low Income Communities. WSSPLIC is proposed for World Bank funding. This is GOI's first attempt to "go to scale" with a large rural water and sanitation project. Innovative approaches and models will be implemented to ensure that WSSPLIC is truly community-based and demand driven. The project design builds on the successful small scale experiences ofNGOs and a few grant-funded government projects. To be responsive to community needs, the project will feature a flexible, dynamic planning approach. WSSPLIC planning and preparation has been characterized by a high degree of collaboration of several types. GOI views the project in a sense as a large pilot exercise that will guide the preparation of a series of subsequent major RWSS projects, tentatively to be funded by the ADB and other ESAs. With this in mind, GOI has established planning and coordinating bodies at several ·levels to ensure that the roles ofthe government agencies involved are effectively integrated. At the policy making level (Deputy Ministers), a Functional Coordinating Committee (FCC) has been established, to which all other lower groups in the coordinating chain ultimately report. At the level ofDirector General, an Executive Coordinating Committee (ECC) steers project preparation in a broad sense and recommends key decisions to the FCC. The key GOI agencies that are involved in the sector- BAPPENAS, and the Departments ofPublic Works, ofHealth and of Home Affairs - are all represented on these committees. ECC meets on an ad hoc basis, about four to six times a year, or more frequently when required to do so. \Vithin the ECC, three Working Groups (WGs) have been established to carry out the preparation of specific elements of the w·ssPLIC. Each WG is chaired by the department with lead responsibility for the respective project element. All involved agencies are represented in each committee in order to enhance integration. The WSSPLIC Project Preparation Secretariat, based within the Department ofHealth, comprises the consultants and core government staff who are actually executing project preparation tasks. GOI is looking closely at this coo~dination arrangement with a view towards applying it to the preparation and monitoring of future projects as a sectoral coordinating mechanism. In practice, the coordination has been less than satisfactory at certain levels. For example, the WGs retain a strong vt:~rtical institutional character, being dominated by the lead department in each WG and with the secondary departments seldom providing adequate representation. However, with some analysis and adaptation, the overall arrangemert could prove to be an effective way to achieve functional collaboration among GOI agencies. Consideration is now being given to consolidating the three separate WGs into one entity, possibly an expanded project/sector secretariat, to steer WSSPLIC implementation and the development of subsequent projects. A clearer definition ofthe roles ofBAPPENAS and the line agencies in future decision making and project planning and execution will help facilitate collaboration. Presently, BAPPENAS is taking a much more active and controlling role in the project development process because of the need for a strong "common broker" among the line agencies. BAPPENAS's mandate is national economic development planning. For the immediate term, there is a clear need for BAPPENAS to provide some direction and control over the project. There are, however, several negative aspects to this arrangement. Firstly, line agencies both resent and are confused by this usurping of what previously were decision-making powers and rdponsibilities that were previously entrusted to them. This has led to significant delays in the decision-making process and subsequent actions as line departments defer decisions to BAPPENAS. Secondly, BAPPENAS itself is not well-equipped to take on project management responsibilities. Hence, already fully committed staff take on additional "micro- planning" and administrative responsibilities. The speed and clarity of project planning and management has suffered accordingly. WSSPLIC Functional Coordination Arrangements for Government Agencies I Functional Coordinating Committee I Executive Coordinating Committet ' I Working Group 1 Working Group 2 Working Group 3 Technology Community Managemen Health Edn, Water Quality Min. of Public Works Mn. of Home Affairs Min. of Health G ~in Pmjoo< P••P""'"" Sw•"''" Min. of Health, staffed by consultants and seconded GOI offic ers 6 Provincial Coordinating Commttees (Chaired by BAPPE[ 'As) 6 Provincial Working Groups, Consultant Teams Collaboration among ESAs has also occurred in the preparation ofWSSPLIC. External funding for project preparation has come from UNDP, through the ongoing CWSP which is executed by the UNDP/World Bank Water and Sanitation Program. This has allowed UNDP to achieve greater impact from it's technical assistance by linking it to the downstream investment of a large multi- lateral development bank. However, in the absence of a sectoral coordinating body that involves E:SAs, broader collaboration and information sharing with ESAs who may wish to invest in the sector based on the experience gained from WSSPLIC planning and implementation has been limited. Finally, NGO-GOI collaboration has been fostered by the project in several ways. GOI and donors agree that several NGOs have achieved notable success, albeit on a limited scale, with water and sanitation projects that inculcate a strong sense of community ownership and beneficiary responsibility for planning and management. These projects have often proven to provide efficient, low-cost service on a long term basis with relatively small external capital inputs. Accordingly, NGOs have been employed to assist GOI to design the WSSPLIC, and it is anticipated that GOI will delegate substantial decentralized responsibilities for project implementation to NGOs. An issue constraining NGO-GOI collaboration is a perception of some government agencies that the objectives ofNGOs and GOI are often not compatible. GOI agencies generally want to retain control over the project, with NGOs playing a distinctly subsidiary (contractor) role. Even when NGO and government objectives are compatible, NGOs generally do not wish to accept what may be perceived as a restrictive controlling role for government. The trend, however, is toward increasing collaboration as provincial and lower level governments see the benefits and increased effectiveness of delegation of :oelected activities to NGOs. ~ ~ 0 <( (J) w 2 0 c 2 u. 0 u - _J ca ::> a.. w 0:: ,, 0 df> d 6'-'J t5J 1~