1. IndII Support to DGH on National Roads –
- Road sector achievements and future program
DGH, 9 July 2012

2. IndII Support under Phase 1 - summary
• MTEF, budgeting and sector performance:
– Budgeting process, strategy linkage to long-term plan, KPI, action plan
• Road network development and planning (Bipran-AECOM):
– NR Masterplan, road corridor plans for E Sumatra & N Java
– BPJT capacity, institutional options and toll road program
• Road program delivery (Bintek-Cardno):
– Extending design life, life-cycle costs, axle load limits, performance-based
contracts, project management, routine maintenance delivery
• Road sector policy issues:
– South Africa visit: SANRAL MTEF, road management, business model
• Sub-national roads:
– Pilot on road management surveys, programming and routine maintenance
• Road safety:
– Blackspot program prepared, design manual produced
2

3. Challenges for the road sector - MTEF
• Infrastructure is a critical constraint to growth
– low competitiveness ranking for road infrastructure provision
• Poor connectivity
– Main corridor times 60-100 percent longer than neighbours
• Low cost effectiveness of road asset management
– while condition is fairly good, deterioration is rapid
– high annual costs, equivalent to new road every 5 years
– fragmented contracts; weak construction industry.
• Changed resource environment
– 6-fold increase in funding in 6 years, 95+% budget execution
– Value for money?? - average cost up, but output flat
• Weak linkages to national development plan
– lacks targets on connectivity, efficiency and effectiveness
3

4. Phase 1 – Road Program implementation
• Strong direction & interaction with Bintek and Balai
• Revision to Pavement Design Guide:
• Long-life designs (low maintenance)
• Catalog approach for greater reliability
(based on detailed analysis and life-cycle costs)
• Strong foundation and drainage for long life
• Overloading incorporated in design
• Flexible, rigid, reconstructed and recycled pavements
• Larger package size improves cost and quality
• Balai want automated road surveys for better data
• Options for management of routine maintenance
• Economic justification for raising legal axle load limit
4

5. Phase 1 – Road Network Development
Connectivity:
• low connectivity compared to regional neighbours, but no target
• how do we measure performance and set targets?
• need to measure, report and forecast travel times
• link RENSTRA workplan to connectivity target and
national long-term plan Normalized Trip Times on Economic Corridor Arterial
Roads – 2011 Estimates
Trip time hr/100 km*
High land transport costs – low 0.0 1.0 2.0 3.0 4.0 5.0 6.0
connectivity of economic centres Trans-Sumatra
1
Target Service level
Trans-Java 1-1.5 hr/100 km
2
Vietnam
Indonesia Kalimantan
3
China
Sulawesi
4
Thailand
Malaysia Bali-NTT
5
Papua-Maluku
6
0.00 1.00 2.00 3.00
Trip time (hr/100 km) * Corridor distance shorter
Road Trip Time Nautical Add-on than Arterial road distance
Source: IndII estimates from bus schedules and DGH data, April 2012
5

6. DGH Masterplan for Road Infrastructure 2010-14
Road Length, km
- 2,000 4,000 6,000 8,000 10,000
Road development program -
Sumatra
Incremental widening to 3,690
minimum width standard Java 1,430
• Budget IDR 7 trillion/yr Kalimantan 2,780
• Covers 47% of network in 5 yr
Sulawesi 3,160
Total Length
• Increments to 4.5, 6 or 7 m width
NTT 987 Improved
But comes at high cost: length
Maluku-Papua 1,905
• No distance saving, little speed
Width standard of national arterial roads,
improvement after DGH road development program 2010-14
• Investment repeated in 5-10 yrs
7m
• High cost = 30-40% of full width
14%
construction for 20-yr life
6 m width 4.5 m width
• Defers achieving modern asset 33% 53%
• Compounds land issues
6

7. Corridor planning approach for long-term
development
Nunukan
Malinau
Corridor plan evaluates options when
generating project pipeline and Tj. Selor
investment profile for Economic
Aruk
Corridor:
Ng Badau
staged over 5, 10, Enttikong
Putusibau
15 & 20 year periods
Pontianak Tayan
Samarinda
Balikpapan
Palangkaraya
Strategic Options
(1) Widen existing road Banjarmasin
(2) Realign & rebuild – “road renewal”; digambarkan dengan garis putus-putus
Jalan yang belum terbangun
Road standard
(3) Highway on future expressway Expressway
location >= 7 m
6m
(4) Expressway in new location 4.5 – 6 m
Not Connected
Sea Port
7

8. Corridor plan (trans-Sumatra example):
detailed multi-year program & standard
8

9. Corridor plan – strip map presentation:
Trans-Sumatra - Corridor Plan for Staged Development of
Capacity in Parallel Facilities over long-term 20-yr period
ARTERIAL NATIONAL ROAD WIDTH
Width m 14 2019
Road Width
10 2024
2014
7
6
5 2010
101 102 103 104 105 106 107 108 109 110 111 112 113
B Aceh
B Aceh Medan
Medan Pekanbaru
Pekanba Lampung
Palembg Lampung
Length km 644 694 754 443 0
Total distance 2536 1892 1198 443
EXPRESSWAY
Dual C'way
Renstra period color code
Baseline
2010-2014
2015-2019
2020-2024
2025-2029
101 102 103 104 105 106 107 108 109 110 111 112 113
B Aceh Medan Pekanba Palembg Lampung
2029 2019 2024 2019
Length km 460 564 610 380 0
Distance km 2014 1554 990 380
9

10. Corridor Plan Output - Trans-Sumatra Example:
Linkage of Development Outcomes and Financing Plan
– Long-term 20-yr Period
Connectivity: 80 Financing Plan
5-Year Spending estimate (IDR T)
Travel Time from South to 70
1,5
North 60
7
50
70
60 40
58,6
TRAVEL TIME (hr)
50 30 47,9
0
40 20
20,2
30 B Aceh 10
2,6 1,7 3 3,6
3 3 3 0
20 Medan 0 1,8
Pekanb
10 R1 R2 R3 R4
Palem RENSTRA PERIOD
0 Boukh
2010 2015 2020 2025 2030 Rd Presv Rd Widening Exwy GOI Exwy PrivSec
10

11. Forecast of Forward Funding Requirements
(demonstration only, from study data)
• Public funding of IDR 42-56 trillion/yr required 2015-29
• Only IDR 4 trillion/yr (16%) attractive to private sector
• Road development requires IDR 19 trillion/yr – in renewal
• Road preservation 20-30% less due to stronger roads
70
Forecast Funding Requirements
60
Annual Funding Requirement,
IDR trillion (2011 prices)
50
40
Expressway - private funding
30
Expressway - public funding
20 Arterial road development
10 Road preservation
Road management
0
2005-09 2010-14 2015-19 2020-24 2025-29
11

12. Priorities for Phase 2 support
Based on DGH priorities and Phase 1 findings, key areas include:
• Preparation of long-term national road master-plan:
– Connectivity in main economic corridors
– Expressway development, project pipeline and financing
– Modernisation of arterial road network
• Better road performance and lower annual costs
– extend life of road assets – expected and actual
• Better budget allocation and accountability
– Improved asset management and systems
• Strategic priorities for RENSTRA and funding requirement
• Staff performance, capability and accountability
12

13. Proposed activities for Phase 2 National roads
Policy
Planning
Program delivery
13

14. 1. Advisory support on road sector policy
- DG, Directors
Aims
• Improving sector and institutional performance
• Effective legal, regulatory & financing provisions
• Effectiveness of IndII support to DGH & road sector
Sub-activities:
• Dialog with GOI – MPW, MOF, Bappenas, CMEA, MoT
• Revisions to Road Law
• Expressway financing and issues
• Institutional structure and organizational performance
• Management and financing
• Sub-national road role, road preservation fund
• IndII road program effectiveness
14

15. 2. Support on Planning Road Development
- Bipran, BPJT
Aims:
• Plan road development to meet connectivity goals
• Strategy for modernising arterial road network
• Improve delivery & financing of expressway network
Main outputs:
• Long-term development strategy for road infrastructure
• 20-yr pipeline of investment projects in economic corridors
• Expressway masterplan and PPP-VGF demonstration
• Road renewal policy to modernise arterial road network
Performance measures:
• Connectivity (travel time) in main corridors
• Accessibility in eastern region (km/km2)
15

16. 2. Support on Planning Road Development:
Sub-activities
• Procedures for planning development of road network
– Advisory support in Bipran: long-term planning of connectivity &
capacity in corridors, road renewal policy, medium-term pipeline, KPI
for network, staff competencies and training
• Planning & capacity for developing expressway network
– Update expressway master-plan, include staging
– BPJT advisory support, VGF financing mechanisms, capacity-building,
review of packages, institutional options
• Preparation of corridor plans for Java and Sumatra
– Refine corridor plans & extend to arterial corridors, prepare 2015-19
project pipeline, guidance on expressway packages
• Preparation of corridor plans & pipeline for east region
– Survey, analyse and prepare plans for 4 main corridors in Kal, Sul,
Bali-NTT, M-Papua; 2015-19 pipeline; review needs for other NAR
• Preparation of medium- and long-term plans
– Assist preparation of 2015-19 RENSTRA and 2015-24 long-term plan
16

17. 3. Improving performance of national road
program implementation (Bintek, balai)
Aims:
• To extend asset life through improved design
• To build capacity for asset management in balai
implementation offices
• To improve delivery and quality of construction and
maintenance
Performance measures:
• Expected life and actual life of major works
• Contract package length
• Average preservation costs/km/yr
• Road and bridge condition
• Percentage of arterial road renewed
17

18. 3. Improving the performance of national
road program implementation (cont)
• Implementation of new design code
– Longer life, better foundation & drainage, concrete
• Application of road renewal policy
– Programming, design & implementation of road renewal along
arterial corridors coordinated with long-term network plan
• Development of improved asset management tools
– Automated surveys, practical life-cycle programming tool with
strip-map report to replace IRMS, performance indicator reports
• Improved project management, skills & performance
– Satker and PPK strengthened in contract packaging, procurement
and supervision
– Further use of performance-based and maintenance contracts
• Piloting of asset management & project management
– 2 balai in 2013, then progressively to other balai 2014-15.
18

19. 3. Improving the performance of national
road program implementation (cont)
• Improved public participation
– Use of program reports in local consultation, public disclosure of
program and project information (perhaps through CoST)
• Improved performance and incentives for contractors
– Support for action plan of Bp Konstruksi to improve certification
and performance evaluation, strengthen LPJK and accountability
19

20. Interim activities – July-December 2012
• Bintek support:
– Training of balai on new pavement design manual, calibration of
structural tests, preparation of drainage design manual, baseline
survey of KPI
• DG, Bipran support:
– Preparing & convening national symposium on road network
development and financing, with GOI & international participants
• Bipran support:
– Baseline surveys of connectivity in main trunk routes; review
status of new toll road packages; preparation for main activity
• Detailed preparation and procurement of IndII DGH
activities
20

21. IndII-2 in DGH:
Key concepts to note
• Expressway as class of public road, not toll road
• New public financing model (VGF) in PPP
– Availability- or performance-based, quarterly payment, toll optional
• Long-term corridor plan selects road standard and timing
of renewal
• Road renewal policy
– Defers betterment until full realignment & construction planned
– Gains long life, safe, modern highway
• Asset management and programming function for
preservation transferred to balai, with graphical tool
• Costs reduced by extending expected and actual life
• Independence between supervision and contractor
• Monitor outcomes – KPI on travel time, age, costs
21

22. Timeline for Phase 2 on national roads
Month Activity
Jan-12 DGH workshop on future direction,
Ongoing IndII-DGH discussions
Apr-12 IndII consultation on strategy with
AusAID
Jul-12 - Activity proposals drafted
- Activities discussed with DGH
- Policy adviser (John Lee) arrives
Aug-12 - Activity designs finalised,
procurement starts;
- Interim activities start
Oct-12 Symposium on road development
planning and financing
Jan-13 Expected start of main Planning
and Implementation activities
Jan-14 Mid-term review
Dec-14 Main activities end
22

23. Conclusion
• The activities are designed to support DGH in delivering
its program
• Core support will be provided through individual advisers
working as partner to Directorate staff in DGH offices
• Consultant teams will be coordinated by the advisers and
work closely with DGH staff in central and balai offices
• The teams will be most effective if working space can be
made available in DGH offices
• Your input to the activity design is important – especially
in the next two months Jul-Aug
Terima kasih
23

24. 4. Sub-national roads:
Incentivising road management
Objectives Implementation and Outcomes
 Strengthening central Component 1: Preparation of Grant Design and Interim
and provincial Support for Critical Elements to expedite program,
agencies on asset (implemented second half of 2012)
management for sub- Component 2: Consultants for project management and
national roads (SNR) implementation of grant program over 5 years, 2014-2018;
 Improving participation  Creation of SNR project management unit in DGH
by private sector and
 Establishment of transport forums
the public – to improve
communication and  TA and training in planning and implementation of
agency performance maintenance & rehabilitation, and PBC
 Implementation of pilot  Incentives for increased budget allocation, for
output-based road contracting out works and performance-based contracts
maintenance and
rehabilitation program  Staged pilot, starting with one province (NTT) increasing
to up to other jurisdictions, based on demonstrated
 Effective delivery of capability and commitment.
IndII support for sub-
national roads
24

25. 5. Improving Road Safety Blackspots and
Program Management
Objectives Implementation and Outcomes
 Building capability of Component 1: Interim support: international road safety
central and regional specialist supporting RSEU 3 p-months to Jul-12;
offices for managing Component 2. Implementation support by Consultant firm for
24 months to Jun-14 (2-stage);
blackspot improvement
Component 3. Program management support by International
programs specialist (50% of 30 months).
 Implementation of Strategic Plan for Road Safety in DGH
blackspot
improvements to meet  RSEU, DGH balai and local police trained in managing
RENSTRA targets road safety programs,
 Developing and  Support to achieve 150 blackspot improvements to
monitoring road safety achieve RENSTRA objectives
programs in national  Three fact-finding missions provide overseas training and
police and sub-national experience to 60 officials
road agencies
 Performance and results publicised and build GOI donor
 Effective delivery of & public support for road safety programs
IndII support for road
safety•  Further road safety programs ready in DGH, INTP and
sub-national DGLT agencies.
25