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Indonesia - Second Rural Roads Development Project (English)

The Second Rural Roads Development Project for Indonesia achieved a satisfactory overall outcome. Most major objectives were achieved substantially or partially, and a few were negligible. The development results were satisfactory in dissemination of procedures and technical guidelines, with shortcomings in maintenance and completion of institutional reform. The project's sustainability is likely. Bank performance was satisfactory in the identification, preparation, and supervision phases, but unsatisfactory in the appraisal and negotiations phases. Borrower performance was satisfactory in project preparation but deficient in implementation and compliance with loan covenants. A highlight of the project was the benefit and road condition monitoring program, which provided important economic rate of return data. The most important findings were that: upfront technical guidance to local governments was as important as their administrative monitoring; continuity of technical assistance at the central level was essential to support effectively weak project management; and there is value in balancing a lending program by following up an institutionally complex project with a series of simpler projects to consolidate the achievements. Three major lessons learned are as follows. First, project objectives should not be too ambitious; goals should be realistic, specific, and achievable within a reasonable time. Second, in the medium term, project design should provide intensive technical assistance for monitoring at the central level and implementation at the regional level. Third, in the longer term, sustainability is determined not only by the quality of the training and human resource development programs, but also by the incentives that the central government uses to ensure that lower levels of government use resources effectively.

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Indonesia - Second Rural Roads Development Project (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/352891468253200880/Indonesia-Second-Rural-Roads-Development-Project