The World Bank Report No: ISR14380 Implementation Status & Results Indonesia Local Government and Decentralization Project (P111577) Public Disclosure Copy Operation Name: Local Government and Decentralization Project (P111577) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 28-Jun-2014 Country: Indonesia Approval FY: 2010 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Public Works, Secretariat General, BPKP, Ministry of Finance, Bappenas, Ministry of Home Affairs Key Dates Board Approval Date 08-Jun-2010 Original Closing Date 30-Jun-2014 Planned Mid Term Review Date 31-Dec-2012 Last Archived ISR Date 23-Oct-2013 Effectiveness Date 20-Jan-2011 Revised Closing Date 31-Dec-2015 Actual Mid Term Review Date 03-Jun-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to improve the accountability and reporting of the central government’s Specific Purpose Grants (DAK) for the infrastructure sub-sectors within pilot local governments (LGs). This will be done through improved financial and technical reporting, and verification of outputs delivered by LGs with the DAK grants. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost DAK Reimbursement 220.00 Insitutional Strengthening to Central and Local Governments and Project Management Support 8.50 Verification of Outputs 4.50 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview Key implementation highlights during the period include: (i) extension of the closing date from December 2014 to December 2015; (ii) BPKP completed verification of outputs and submitted the results on April 30, 2014; (iii) actions taken to improve design for Institutional Support Program (TA); and (iv) GPOBA support to improve the capacity of BPKP on conducting technical verification. The extension will allow for 2014 output reimbursement. The restructuring to extend closing date of the project that was completed in March 2014 and will allow the Project to reimburse for GoI 2014 fiscal year output reimbursement. GoI is considering options for expanding the program nationwide after 2015. Page 1 of 5 The World Bank Report No: ISR14380 Locations Country First Administrative Division Location Planned Actual Indonesia Not Entered Propinsi Kalimantan Tengah Public Disclosure Copy Not Entered Not Entered Propinsi Kalimantan Tengah ✔ ✔ Indonesia Not Entered Propinsi Jawa Timur Not Entered Not Entered Propinsi Jawa Timur ✔ ✔ Indonesia Not Entered Propinsi Jambi Not Entered Not Entered Propinsi Jambi ✔ ✔ Not Entered Not Entered Propinsi Jambi ✔ ✔ Indonesia Not Entered Propinsi Maluku Utara Not Entered Not Entered Propinsi Maluku Utara ✔ ✔ Indonesia Not Entered Provinsi Sulawesi Barat Not Entered Not Entered Provinsi Sulawesi Barat ✔ ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Development and use of an information system Percentage Value 0.00 80.00 100.00 to which LGs report information to the MoF and Date 30-Jun-2010 12-Jun-2014 31-Dec-2015 the MPW Comments The information system is not The PIU has developed both WBRS will be used to submit yet in place. During the on-line and off-line WBRS to the technical and financial project implementation, the improve DAK reporting. To reports of DAK outputs. It is Public Disclosure Copy WBRS will be developed both date, 80% of participating expected to be accessible by in MoF and MPW, andlinked districts submitted their GOI and all participating LGs to LG systems. technical and financial by the end of project. reporting using WBRS Physical outputs reported, verified, and Percentage Value 0.00 66.00 100.00 meeting eligibility criteria Date 30-Jun-2010 12-Jun-2014 31-Dec-2015 Comments Eligibility criteria include BPKP's verification in 2014 Focusing on the infrastructure physical realization of outputs shows that, by value, 66% of sectors within the pilot (construction completion total DAK Infrastructure provinces, it is expected to certificate and compliance allocation in 2013 was measure the qualifying Page 2 of 5 The World Bank Report No: ISR14380 with Technical Specifications), verifiable. Increased as 2% percentage (QP) of contracts compliance to national compared to last year. in a sample of outputs procurement Perpres Number of sampled contracts reviewed by BPKP that 54/2010, and compliance to and the qualifying percentage comply with eligibility criteria Public Disclosure Copy MPW Supplement Technical that is eligible for for reimbursement by the Guidelines, which include reimbursement is 87%. Most project. Safeguards. of ineligible contracts are due to community-based sanitation and direct procurement Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Percentage of LGs that receive DAK payment Percentage Value 54.30 26.00 75.00 1 from MoF by March 31. Date 30-Jun-2010 12-Jun-2014 31-Dec-2015 Comments The baseline covers all DAK Based on BPKP's report, only The target is to encourage funds recipient districts. 26% of total participating MOF to transfer DAK funds districts have received their on-time. first DAK payment from MOF by March 31, 2014.This is a significant decrease, compared to last year. However, this decrease actually indicated a stronger internal control in government system. Starts in 2014, MoF requested all LGs to submit the previous year's budget accountability report to receive the 1st DAK tranche. The MoF and the MPW Web-based reporting Percentage Value 0.00 100.00 100.00 system (WBRS) fully operated Date 30-Jun-2010 01-Sep-2013 30-Jun-2014 Public Disclosure Copy Comments No system is in place. The on-line WBRS is currently This is an end-of-project in place target. Percentage of LGs reporting financial Percentage Value 0.00 56.00 100.00 information and outputs through the MoF and Date 30-Jun-2010 01-Sep-2013 30-Jun-2014 MPW web-based systems Comments The LGs are currently In total, around 65% of submitting financial and participating LGs submitted technical report manually, technical reports using since the web-based system WBRS, and 56% submitted is not in place yet. financial reports using WBRS Page 3 of 5 The World Bank Report No: ISR14380 Supplement of MPW Technical Guidelines on Text Value The original MPW Technical Issuance of the MPW Safeguard issued by MPW Ministerial Circular Guidelines do not include Supplement Technical letter Safeguards issues. Guidelines, include Safeguards. Public Disclosure Copy Date 30-Jun-2010 10-Jun-2014 30-Jun-2014 Comments A revised Supplemental Technical Guideline is being prepared. The revision contains a few update to the referred laws and regulations, includes additional formats for land acquisition, and affirmation of important terms on Indigenous Peoples policy. MoF produce annual M&E reports for the Text Value N/A The PIU submitted M&E Annual and quarterly project project, mid-term evaluation report and final report of the project on report and IFRs, Annual M&E, evaluation report December 2013 and Mid-Term Evaluation, and submitted IFR Q1 2014 on Final Evaluation Reports are May 2014 submitted on time. Date 30-Jun-2010 12-Jun-2014 31-Dec-2015 Comments Requirement pertains to M&E report for 2013 and IFR project activities, and does Q1 2014 were submitted on- not have a logical baseline time Number of eligible outputs completed by LGs Number Value 0.00 98.00 100.00 by December 31 Date 30-Jun-2010 10-Jun-2014 31-Dec-2015 Comments DAK outputs 2010 are not Based on BPKP's first The number of eligible eligible and will not be verification of outputs in 2014, outputs might change subject verified, since the MPW 98 % have completed outputs to the total allocation each Supplement Technical by December 31, 2013 year. It is expected that all Guidelines has only been outputs completed by issued on January 20, 2011. December 31 will be eligible for DAK reimbursement. Public Disclosure Copy Percentage of LGs that have passed their Percentage Value 33.30 26.00 100.00 budgets and allocated contribution for the DAK Date 30-Jun-2010 12-Jun-2014 31-Dec-2015 by February 28 Comments The project is encouraging There were significant At the end of the project, it is LGs to pass their budgets decrease in the number of expected that all participating earlier, so that they can LGs that have passed their LGs passed their budget and receive DAK first payment local budget by February 28, allocated contribution for DAK from MoF by March 31 each 2014. This was due to by February 28, each year. year. additional requirement by the GOI on LG reporting their previous year unspent budget Page 4 of 5 The World Bank Report No: ISR14380 Data on Financial Performance (as of 30-Mar-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P111577 IBRD-79140 Effective 08-Jun-2010 23-Jun-2010 20-Jan-2011 30-Jun-2014 31-Dec-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P111577 IBRD-79140 Effective USD 220.00 220.00 0.00 122.78 97.22 56.00 Disbursement Graph Key Decisions Regarding Implementation Public Disclosure Copy N/A Restructuring History Level two Approved on 01-Apr-2013 Related Projects P123940-Local Government and Decentralization Project Additional Financing Page 5 of 5