The World Bank Report No: ISR10612 Implementation Status & Results Indonesia URBAN SECTOR DEVELOPMENT AND REFORM PROJECT (P071296) Public Disclosure Copy Operation Name: URBAN SECTOR DEVELOPMENT AND REFORM Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 29-Jun-2013 PROJECT (P071296) Country: Indonesia Approval FY: 2005 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 07-Jun-2005 Original Closing Date 30-Jun-2011 Planned Mid Term Review Date 15-Apr-2008 Last Archived ISR Date 03-Dec-2012 Effectiveness Date 18-Jan-2006 Revised Closing Date 31-May-2013 Actual Mid Term Review Date 16-Mar-2009 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to assist the Borrower to strengthen local governance and improve the provision of selected urban services by participating Urban Local Governments (ULGs) and additional participating ULGs. Has the Project Development Objective been changed since Board Approval of the Project? � Yes No Component(s) Component Name Component Cost Urban Reform and Institutional Support Component 5.96 Urban Investment Component 42.35 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview The project has been very successful in strengthening governance in the 10 participating urban local governments (ULGs) and has completed 15 investment sub-projects aimed at improving provision of services. All the ULGs have met, and in some cases exceeded, the project’s specific reform and governance objectives related to transparency, participation, accountability, financial management, and procurement management, as reflected in the performance indicators. The project also completed construction or rehabilitation of 13 public markets, 1 bus terminal, and 1 fish auction facility. While the quality of the infrastructure itself is good, final outcome assessment is still underway because about half including three sub-projects that were completed only recently are not yet fully operational. In most cases, those that are operational have been found to have increased local government revenues, Page 1 of 11 The World Bank Report No: ISR10612 have allocated operation and maintenance costs, and enjoy good rates of both trader and customer satisfaction. Similar outcomes are anticipated for the rest of the markets as they become fully operational over the next few months. Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Indonesia Aceh Banda Aceh ✔ ✔ Indonesia Not Entered Kotamadya Yogyakarta Indonesia Not Entered Toboli Indonesia Not Entered Propinsi Sulawesi Tengah Indonesia Central Sulawesi Provinsi Sulawesi Tengah ✔ ✔ Indonesia South Sulawesi Provinsi Sulawesi Selatan ✔ ✔ Indonesia Not Entered Kabupaten Sidenreng-Rapang Indonesia Not Entered Kotamadya Semarang Indonesia West Sumatra Sawahlunto ✔ ✔ Indonesia Not Entered Kotamadya Parepare Indonesia Not Entered Kota administratip Palu Indonesia Not Entered Palopo Indonesia South Sulawesi Palopo ✔ ✔ Indonesia Kalimantan Tengah Palangkaraya ✔ ✔ Indonesia Not Entered Kabupaten Musibanyuasin Indonesia Not Entered Kabupaten Manokwari Public Disclosure Copy Indonesia Not Entered Mangkang Indonesia Not Entered Kota Administratip Cimahi Indonesia West Java Cimahi ✔ ✔ Indonesia Not Entered Kotamadya Blitar Indonesia Not Entered Kemirimuka Indonesia Not Entered Kecamatan Gamping Page 2 of 11 The World Bank Report No: ISR10612 Country First Administrative Division Location Planned Actual Indonesia Not Entered Kabupaten Sleman Public Disclosure Copy Indonesia Not Entered Desa Umbulharjo Indonesia Not Entered Kecamatan Pangkajene Indonesia Not Entered Kotamadya Depok Indonesia Not Entered Kecamatan Moutong Indonesia Not Entered Lakessi Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increased revenue, operations and Percentage Value 0.00 50.00 70.00 maintenance expenditures, and satisfaction Date 18-Jan-2006 31-May-2013 31-May-2013 rates among users and consumers of selected Comments Overall ULG target (70%) is Note: Reference to all 10 Reference to all 10 ULGs. At urban services in at least 70% of ULGs with completed subprojects based on achievement of four ULGs. Based on partial least 70% of participating sub-indicators that each have results and data. Four ULGs ULGs increased revenues at their own targets, and are in have met revenue, and seven least 10%; increased O&M at turn determined by individual O&M targets, and five met least 10%; at least have 50% baselines and values satisfaction targets. (detail of traders satisfied; at least achieved for each subproject. see below) have 50% consumers At inception of the project, satisfied. Based on 10 ULGs overall baseline is zero as the with completed sub-projects. project investments have not See breakdown indicators for yet taken place. detailed targets. Based on 10 ULGs. 70% of ULGs increase their local revenue from Percentage Value 0.00 40.00 70.00 Public Disclosure Copy urban services financed by the project by at Sub Type Date 18-Jan-2006 31-May-2013 31-May-2013 least 10% Breakdown Comments Sub-indicator based on Sub-projects in some ULGs At least 70% of participating individual baselines for each have generates significant ULGs have increased local ULG and subproject. Data are revenues. For instance, the revenues by at least 10% collected through municipal markets in Sidrap have records on revenues from generates revenues five times each facility or service. than those of the old markets. The new market in Palopo generates new source of Page 3 of 11 The World Bank Report No: ISR10612 income for the ULG quite significantly. 70% of ULGs increase expenditures for O&M Percentage Value 0.00 70.00 70.00 of infrastructure financed by the project by at Public Disclosure Copy Sub Type Date 18-Jan-2006 31-May-2013 31-May-2013 least 10% Breakdown Comments Sub-indicator based on This includes ULGs whose At least 70% of participating individual baselines for each sub-projects have not been ULGs have increased O&M ULG and subproject. Data are operationalized and newly- by at least 10% collected through municipal built sub-projects. The records on O&M expenditures increase level varies among for each service infrastructure ULGs. For example, financed by the project. Palangkaraya increased the new market's O&M almost 9 times than that of the old market. Percentage of ULGs in which at least 50% of Percentage Value 0.00 50.00 70.00 users express increased satisfaction in doing Sub Type Date 18-Jan-2006 31-May-2013 31-May-2013 business in the improved facility. Breakdown Comments Baseline is zero because the 50% of participating ULGs At least 70% of participating target is based on percentage have 64%-100% of traders ULGs have 50% traders of ULGs meeting targets for who express increased satisfied user satisfaction in facilities satisfaction with the facilities. that were not yet improved and in some cases not identified. Increased satisfaction for individual subprojects will not include and ex-ante baseline but rather through a survey of current users who also were users of the unimproved infrastructure. "Users" refers to vendors orother stakeholders that use the facilities improved through Public Disclosure Copy project investments to conduct business activities and provide commercial services. Percentage of ULGs in which at least 50% of Percentage Value 0.00 50.00 70.00 consumers express increase satisfaction of Sub Type Date 18-Jan-2006 31-May-2013 31-May-2013 using the facilities Breakdown Comments Baseline is zero because the 50% of participating ULGs At least 70% of participating target is based on percentage have at 74%-100% of Page 4 of 11 The World Bank Report No: ISR10612 of ULGs meeting targets for consumers who express ULGs have 50% consumers consumer satisfaction in increased satisfaction with the satisfied facilities that were not yet facilities. improved and in some cases Public Disclosure Copy not identified. Increased satisfaction for individual subprojects will not include and ex-ante baseline but rather through a survey of current consumers who also were consumers of the services before they were improved. "Consumers" refers to customers of vendors or recipients of services provided through the facilities. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Participating ULGs have public feedback Text Value 0.00 (i) 100.00; (ii) 100.00; (iii) 80.00 for (i); (ii) and (iii) mechanisms in place including:(i) the use of at 90.00 least one type of media(s) for public complaints Date 18-Jan-2006 31-May-2013 31-May-2013 which is managed by complaint handling unit; Comments At the inception of the project, 100% of participating ULGs (i) At least 80% of participating (ii) availability baseline was zero as the use media, some ULGs use ULGs (i) use media; (ii) have project has not started its sms; some use sms linked unit that manages complaint facilitation and values vary with web; (ii) 100% have unit handling; (iii) have SOP across ULGs. Information is that manages complaint collected during the handling; (iii) 90% ULGs have supervisions missions and SOP recorded in the Aide Memoires with qualitative information on the progress. Indicators were only specified Public Disclosure Copy in June 2010 during project restructuring. Participatory planning process: (i) allocation of Text Value 0.00 80.00 50.00 block grants to kecamatan and/or kelurahan Date 18-Jan-2006 31-May-2013 31-May-2013 from the ULG and/or from at least oneagency Comments At the inception of the project, 80% of participating ULGs At least 50% of participating with Standard Operating Procedure for the use of block grants baseline was zero as the has block grant mechanisms ULGs has block grant project has not started its or indicative budgets mechanisms or indicative facilitation and values vary budgets across ULGs. Information is collected during the Page 5 of 11 The World Bank Report No: ISR10612 supervisions missions and recorded in the Aide Memoires with qualitative information on the progress. Public Disclosure Copy Indicators were only specified in June 2010 during project restructuring. Participating ULGs practicing sound Financial Text Value 0.00 (i)100.00 (i) 80.00 Management: (i) issuance of local regulation (ii)100.00 and (iii) 70.00 (ii) 80.00 and (iii) 60.00 (PERDA or Decree or Perbup/Perwal) on Date 18-Jan-2006 31-May-2013 31-May-2013 Principle of Regional Financial Management; Comments At the inception of the project, Project Restructuring in 2010 At least 80% of participating (ii) Issuance of local regu baseline was zero as the deleted indicator (iii), ULGs for (i) and (ii) and 60% project has not started its however, the Project of participating ULGs for (iii) facilitation and values vary continued to support this across ULGs. Information is activity. Quality of some collected during the regulations needs to be supervisions missions and improved, implementation of recorded in the Aide the regulations in consistent Memoires with qualitative manner will have to be information on the progress. monitored Indicators were only specified in June 2010 during project restructuring. Center of Excellence: (i) Unit Informasi Text Value 0.00 1 Center of Excellence: at least Pembangunan Permukiman dan Bangunan or 1 Province has (i) and (ii) UIP2B functioned as a Provincial Center of Local Economic Development Excellence to support reforms in the ULGs in and City Development the province; (ii) Work Plan for Strategy: At least 60%of Partic ipating ULGs have (i) and at least 50% of Participating ULGs having the LED-focu sed City Development Strategy achieve (ii) Public Disclosure Copy Date 18-Jan-2006 31-May-2013 31-May-2013 Comments At the inception of the project, 1 PIP2B has been baseline was zero as the established. Organizational project has not started its structure and budget are facilitation and values vary available, a five-year business across ULGs. Information is plan was prepared; and collected during the annualwork plan was issued supervisions missions and recorded in the Aide Memoires with qualitative Page 6 of 11 The World Bank Report No: ISR10612 information on the progress. Indicators were only specified in June 2010 during project restructuring. Public Disclosure Copy Participating ULGs implemented subprojects: Text Value 0.00 (i) 100.00 (i) 100.00 (i) Participating ULGs sign Sub- project Loan (ii) 100.00 (ii) 80.00 Agreements (SLAs) with Ministry of Finance for Date 18-Jan-2006 31-May-2013 31-May-2013 urban investment subprojects; (ii) Participating Comments At the inception of the project, Construction of 15 sub- 100% of ULGs signed SLAs ULGs complete baseline was zero as the projects have been completed and at least 80% ULGs project has not started its in all participating ULGs; completed construction of facilitation and values vary 100% of ULGs have signed urban investment subproject across ULGs. Information is SLAs collected during the supervisions missions and recorded in the Aide Memoires with qualitative information on the progress. Indicators were only specified in June 2010 during project restructuring. Participating ULGs practicing sound Text Value 0.00 (i) 100.00 (i) 60.00 Procurement: (i) Min. 75% of the bids be (ii) 100.00 and (iiii) 30.00 (ii) 60.00 and (iii) 60.00 awarded within the bid validity period, and Date 18-Jan-2006 31-May-2013 31-May-2013 publicizedin the public domain, e.g. website, Comments At the inception of the project, 3 ULGs have implemented At least 60% of participating local bulletin; (ii) Min 50% of t baseline was zero as the (iii) -- performance evaluation, ULGs achieve (i), (ii), and (iii) project has not started its 4 ULGs have prepared criteria facilitation and values vary for the performance across ULGs. Information is evaluation (partially this collected during the indicator is achieved) supervisions missions and recorded in the Aide Memoires with qualitative information on the progress. Public Disclosure Copy Indicators were only specified in June 2010 during project restructuring. Transparency, Participation and Accountability: Percentage Value 0.00 85.00 80.00 ULGs that post semi-annual updates on Date 18-Jan-2006 31-May-2013 31-May-2013 websites or in printed media for specified Comments At the inception of the project, On average between 80-90% At least 80% of participating information baseline was zero as the of participating ULGs have ULGs post the specified project has not started its published six specified types information at six months facilitation and values vary of information in websites or intervals across ULGs. Information is in printed media (details are Page 7 of 11 The World Bank Report No: ISR10612 collected during the shown in the following six supervisions missions and indicators below) recorded in the Aide Memoires with qualitative Public Disclosure Copy information on the progress. Indicators were only specified in June 2010 during project restructuring. Transparency, Participation and Accountability: Percentage Value 0.00 100.00 80.00 ULGs that post semi-annual updates on Date 18-Jan-2006 31-May-2013 31-May-2013 websites or in printed media for information on Comments At the inception of the project, 100% of participating ULGs of At least 80% of participating local development activities/programs baseline was zero as the post the information on local ULGs post the information on project has not started its development activities/ local development activities/ facilitation and values vary programs in websites programs at six month across ULGs. Information is intervals collected during the supervisions missions and recorded in the Aide Memoires with qualitative information on the progress. Indicators were only specified in June 2010 during project restructuring. Transparency, Participation and Accountability: Percentage Value 0.00 90.00 80.00 ULGs that post semi-annual updates on Date 18-Jan-2006 31-May-2013 31-May-2013 websites or in printed media for specified Comments At the inception of the project, 90 % of participating ULGs At least 80% of participating information: Mid-term development Plan (RPJMD) baseline was zero as the published summary RPJMD ULGs post the information on project has not started its on the website or printed RPJMD at six month intervals facilitation and values vary media. across ULGs. Information is collected during the supervisions missions and recorded in the Aide Public Disclosure Copy Memoires with qualitative information on the progress. Indicators were only specified in June 2010 during project restructuring. Transparency, Participation and Accountability: Percentage Value 0.00 70.00 80.00 ULGs that post semi-annual updates on Date 18-Jan-2006 31-May-2013 31-May-2013 websites or in printed media for specified Comments At the inception of the project, 70% of participating ULGs At least 80% of participating information: summary of Local Budget (APBD) baseline was zero as the published summary of local ULGs post the information on Page 8 of 11 The World Bank Report No: ISR10612 project has not started its budget of the ongoing FY, the summary of APBD at six facilitation and values vary and published summary of month intervals across ULGs. Information is budget realization of previous collected during the FY. Public Disclosure Copy supervisions missions and recorded in the Aide Memoires with qualitative information on the progress. Indicators were only specified in June 2010 during project restructuring. Transparency, Participation and Accountability: Percentage Value 0.00 70.00 80.00 ULGs that post semi-annual updates on Sub Type Date 18-Jan-2006 31-May-2013 31-May-2013 websites or in printed media for specified Breakdown Comments At the inception of the project, 70% of participating ULGs At least 80% of participating information: Audited Annual Financial Report none of the ULGs has post the information on the ULGs post the information on published the Audited Annual Audited Annual Financial the Audited Annual Financial Financial Report Report at six month intervals. Report at six month intervals Transparency, Participation and Accountability: Percentage Value 0.00 100.00 80.00 ULGs that post semi-annual updates on Sub Type Date 18-Jan-2006 31-May-2013 31-May-2013 website or in printed media for specified Breakdown Comments At the inception of the project, 100% of participating ULGs At least 80% of participating information: Procurement Plan for the on-going fiscal year none of the ULGs has post the information on the ULGs post the information on published Procurement Plan Procurement Plan and bid the Procurement Plan at six for the on-going fiscal year announcement for the on- month intervals going fiscal year Transparency, Participation and Accountability: Percentage Value 0.00 80.00 80.00 ULGs that post semi-annual updates on Sub Type Date 18-Jan-2006 31-May-2013 31-May-2013 website or in printed media for specified Breakdown Comments At the inception of the project, 80% of participating ULGs At least 80% of 10 ULGs post information: Contracts Awarded in the past six months none of the ULGs has post the information on the the information on the published Contract Awarded Contracts Awarded in the past Contracts Awarded at six in the past six months six month month intervals Local Economic Development and City Percentage Value 0.00 100.00 60.00 Development Strategy: (i) development of LED- Public Disclosure Copy Sub Type Date 18-Jan-2006 31-May-2013 31-May-2013 City Development Strategy by ULGs; (ii) ULGs Breakdown Comments At the inception of the project, 100% of participating ULGs At lease 60% of participating implemented 10% of activities specified in the Strategy none of the ULGs has have (i) and all of them are ULGs have (i) and at least developed the LED-City implementing more than 10% 50% of participating ULGs Development Strategy of the specified activities in have LED-focus City FY 2013 through relevant Development Strategy local agencies. achieve(ii) Data on Financial Performance (as of 25-Mar-2013) Financial Agreement(s) Key Dates Page 9 of 11 The World Bank Report No: ISR10612 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P071296 IBRD-47860 Closed 07-Jun-2005 20-Oct-2005 18-Jan-2006 30-Jun-2011 31-May-2013 P071296 IBRD-77600 Closed 06-Jul-2009 06-Jul-2009 06-Jul-2009 30-Jun-2011 31-May-2013 Public Disclosure Copy P071296 TF-53555 Closed 20-Oct-2005 20-Oct-2005 18-Jan-2006 30-Jun-2011 31-May-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P071296 IBRD-47860 Closed USD 45.00 45.00 0.00 0.00 0.00 0.00 P071296 IBRD-77600 Closed USD 45.00 38.14 6.86 36.51 1.63 96.00 P071296 TF-53555 Closed USD 5.00 5.00 0.00 4.39 0.61 88.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The Ministry of Public Works is finalizing a Project Benefit and Monitoring Evaluation (PBME) Report. Both the Ministry and the Bank are preparing completion reports, and are collaborating to facilitate the orderly closure of the project and make arrangements to help ensure the sustainability of the project’s reforms, investments, and outcomes. Restructuring History Board/AOB Approval on 04-Jun-2010, Level two Approved on 13-Apr-2011, Level two Approved on 14-Jun-2012 Related Projects Page 10 of 11 The World Bank Report No: ISR10612 There are no related projects. Public Disclosure Copy Public Disclosure Copy Page 11 of 11