Public Disclosure Copy The World Bank Implementation Status & Results Report Local Government and Decentralization Project (P111577) Local Government and Decentralization Project (P111577) EAST ASIA AND PACIFIC | Indonesia | Social, Urban, Rural and Resilience Global Practice Global Practice | IBRD/IDA | Specific Investment Loan | FY 2010 | Seq No: 8 | ARCHIVED on 02-Mar-2016 | ISR21773 | Implementing Agencies: Ministry of Public Works, Secretariat General, BPKP, Ministry of Finance, Bappenas Key Dates Key Project Dates Bank Approval Date:08-Jun-2010 Effectiveness Date:20-Jan-2011 Planned Mid Term Review Date:31-Dec-2012 Actual Mid-Term Review Date:03-Jun-2013 Original Closing Date:30-Jun-2014 Revised Closing Date:31-Dec-2018 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 andtechnicalreporting, and verification of outputs delivered by LGs with the DAK grants. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)PHRPDODEL The objective of the Project is to improve the accountability and reporting of the central government’s Specific Purpose Grants(DAK) for basic infrastructure, consisting of roads, irrigation, water and sanitation, within Selected Local Governments. Components Name DAK Reimbursement:(Cost $720.00 M) Institutional Support Program:(Cost $18.50 M) Verification of Outputs:(Cost $14.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  --  Moderate 3/2/2016 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Local Government and Decentralization Project (P111577) Implementation Status and Key Decisions 1. Project implementation has been progressing well. One of the key performance indicators on the use of the Web-Based Reporting System (WBRS), showed that in 2015, 80% of the 209 participating Local Governments (LGs) submitted their reporting using the WBRS. The results from the Government of Indonesia's Internal Auditor (BPKP) verifcation of outputs between 2011 and 2014 showed that - on average - 59% of the annual DAK infrastructure output in the participating local governments (LGs) are eligible for reimbursement. The verification for outputs of DAK infrastructure for calendar year 2015 by BPKP are currently in progress and will be finalized by end of April, 2016. 2. A project restructuring is being processed to adjust for changes in the Government of Indonesia's Specific Purpose Grants (DAK) policy for 2016, to remove the requirement for LGs to provide a 10% contribution or matching funds for DAK transfers. As requested by the Government, the project restructuring also increased the procurement ceiling for eligible outputs, from USD 2 million to USD 3 million, with additional requirement to submit publication of award of contract in the National Procurement Portal (INAPROC) through the e-Procurement Services (LPSE). Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Moderate Macroeconomic  --  --  Moderate Sector Strategies and Policies  --  --  Moderate Technical Design of Project or Program  --  --  Low Institutional Capacity for Implementation and Sustainability  --  --  Substantial Fiduciary  --  --  Substantial Environment and Social  --  --  Moderate Stakeholders  --  --  Moderate Other  --  --  Low Overall  --  --  Moderate Results 3/2/2016 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Local Government and Decentralization Project (P111577) Project Development Objective Indicators PHINDPDOTBL  % DAK reports submitted online through Web-Based Reporting System (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 80.00 95.00 70.00 80.00 Date 31-Jul-2014 23-Jun-2015 15-Feb-2016 31-Dec-2018 Comments The actual current compliance reduced compared to previous compliance in June, 2015, as the current percentage include additional new local government participants adding from 78 LGs in June 2015 to 209 LGs by February, 2016. These new LG participants will be verified by BPKP starting March, 2016 for outputs produced in 2015. The compliance will be updated after the verification results submitted to the Bank by June, 2016. PHINDPDOTBL  % of physical outputs reported, verified, and meeting eligibility criteria (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 87.00 -- 80.00 88.00 Date 31-Jul-2014 -- 15-Feb-2016 31-Dec-2017 Overall Comments This is a new indicator agreed with the GOI during the negotiation for the Additional Financing. The baseline was from the Phase 1 of this project. Intermediate Results Indicators PHINDIRITBL  Percentage of LGs that receive DAK payment 1 from MoF by March 31. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 54.30 66.00 66.00 60.00 Date 30-Jun-2010 27-Apr-2015 15-Feb-2016 31-Dec-2018 3/2/2016 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Local Government and Decentralization Project (P111577) PHINDIRITBL  Supplement of MPW Technical Guidelines on Safeguard issued by MPW Ministerial Circular letter (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Issuance of the MPW The original MPW Supplement Technical Guidelines do Value Issued Issued Technical not include Safeguards Guidelines, issues. include Safeguards. Date 30-Jun-2010 27-Jan-2015 27-Jan-2015 30-Jun-2014 PHINDIRITBL  MoF produce annual M&E reports for the project, mid-term evaluation report and final evaluation report (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Annual and quarterly The PIU submitted the project report The PIU submitted the 2014 M&E report along and IFRs, 2014 M&E report along with the submission of Annual M&E, with the submission of IFR for Q4 2014 on Mid-Term Value N/A IFR for Q4 2014 on Feb Feb 5, 2015. The IFR Evaluation, and 5, 2015. The IFR for Q1 for Q1 2015 was Final 2015 was submitted on submitted on June 25, Evaluation June 25, 2015 2015 Reports are submitted on time. Date 30-Jun-2010 26-Jun-2015 26-Jun-2015 31-Dec-2018 PHINDIRITBL  % of contracts with work completed with documented physical handover by December 31 (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 96.70 96.70 -- Date 30-Jun-2010 27-Apr-2015 27-Apr-2015 31-Dec-2015 3/2/2016 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Local Government and Decentralization Project (P111577) PHINDIRITBL  Contracts with quality of outputs delivered according to contract by December 31 (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 87.00 34.00 34.00 45.00 Date 31-Jul-2014 27-Apr-2015 27-Apr-2015 31-Dec-2018 PHINDIRITBL  Maintain an issued Supplement of the MPW's Technical Guidelines on Environmental and Safeguards through MPW Circular Letter applicable to all Selected Local Governments in each FY (Date, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20-Dec-2010 27-Jan-2015 27-Jan-2015 -- Date 20-Dec-2010 27-Jan-2015 27-Jan-2015 31-Dec-2018 PHINDIRITBL  % of LGs with functioning procurement unit (ULP) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 73.00 93.00 73.00 80.00 Date 31-Jul-2014 26-Jun-2015 15-Feb-2016 31-Dec-2018 PHINDIRITBL  BPKP submits to PIU a quantitative and qualitative Verification Report consistent with the TORs for the same as specified in the Verification Arrangement by May 31 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 02-Sep-2014 23-Jun-2015 23-Jun-2015 31-Dec-2018 3/2/2016 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Local Government and Decentralization Project (P111577) PHINDIRITBL  Issuance by BPKP of Verification Manual and socialization of BPKP regional representatives by February 28 of each FY (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date -- 30-Apr-2015 30-Apr-2015 31-Dec-2018 Overall Comments Almost all indicators remain the same as in the previous ISR. This is due to the once a year disbursement schedule of the project. BPKP will only verify outputs produced at the local governments starting early March. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P111577 IBRD-79140 Closed USD 220.00 220.00 0.00 219.77 0.23 100% P111577 IBRD-84380 Effective USD 500.00 500.00 0.00 46.15 453.85 9% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P111577 IBRD-79140 Closed 08-Jun-2010 23-Jun-2010 20-Jan-2011 30-Jun-2014 31-Dec-2015 P111577 IBRD-84380 Effective 30-Sep-2014 27-Nov-2014 02-Feb-2015 31-Dec-2018 31-Dec-2018 Cumulative Disbursements 3/2/2016 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Local Government and Decentralization Project (P111577) Restructuring History Level Approved on 01-Apr-2013 ,Level 2 Approved on 14-Apr-2014 ,Level 2 Approved on 08-Feb-2016 Related Project(s) P123940-AF to the Local Government and Decentralization Project /LGDP Phase II 3/2/2016 Page 7 of 7 Public Disclosure Copy