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Inception Report Amended.doc - EDFF

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					Project Management Consulting Services for EDFF
 Aceh – Economic Development Financing Facility
                                      Indonesia


                                         World Bank
                                 Grant No: TF 093358



             BMB Mott MacDonald in association with:
             - PT. PPA Consultants

                                    Inception Report

                                           April 2010




                                                   1
ECONOMIC DEVELOPMENT FINANCING FACILITY




            INCEPTION
              REPORT
Covering the period January 2009 to 31st March 2010




                                                      2
                                           TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS                                                                        5

EXECUTIVE SUMMARY                                                                                 7

PART I: INTRODUCTION AND BACKGROUND, PROJECT FUNDING AND
       STRUCTURE, MAYOR PLAYORS                                                                   13

    1.   Introduction                                                                             13

    2.   Project Background                                                                       15

    3.   Project cost                                                                             17

    4.   Project structure                                                                        17

    5.   Major players                                                                            17

PART II: PHYSICAL PROGRESS DURING INCEPTION                                                       20

    6.   Chronology of Key Events prior to the arrival of Project Management Consultant           21
         (PMC) January – September 2009

    7.   Events and Activities after arrival of PMC September 2009 – March 2010                   21

PART III: FINANCIAL MANAGEMENT PROGRESS DURING THE INCEPTION                                      29

    8. Activities in the Inception Phase                                                          29

PART IV: MAJOR ACTIVITIES AHEAD                                                                   31

    9.   Finance Unit                                                                             31
    10. Procurement Unit                                                                          33
    11. Safeguards & Ethics Unit                                                                  35
    12. Communication & Training Unit                                                             39
    13. M&E Unit and reporting                                                                    49

PART V: OVERALL OBSERVATIONS, CONCLUSIONS AND RECOMMENDATIONS                                     54

    14. On the Selection process                                                                  54
    15. On Financial Management                                                                   54
    16. On SIEs and their sub-project proposals                                                   56
    17. On coordination and cooperation                                                           58
    18. On security                                                                               59
    19. Recommendations in respect of Project management: Component I                             69
    20. Recommendations in respect of Project management: Component II                            62
    21. Funding the cost of additional management capacity of PMC/PMU                             63

Annexes:
    1. List of eight sub-projects and implementing SIEs, budgets, sectors and districts covered   64
    2. Mobilisation schedule and status International & National Consultants                      66
    3. Time and activity schedule selection process                                               67
    4. Financial tables                                                                           68
    5. TOR PMC                                                                                    77
    6. PMU/KPDT Capacity building Plan                                                            93

                                                                                                       3
7. PMC notice to proceed                                                107
8. Minutes of meeting, results of opening envelopes with sub-projects   108
9. TOR Selection Committee                                              113
10. Job descriptions Personnel and Staff PMU                            117
11. List of equipments and other procurements by PMC                     119




                                                                               4
Abbreviations and Acronyms

AMDAL         Analisa Mengenai Dampak Lingkungan or Environmental Impact
              Assessment
BAPPEDA       Badan Perencanaan Pembangunan Daerah (of Government of Aceh)
BAPPENAS      State Ministry for Development and Planning (of GoI)
BPKP          Financial and Development Supervisory Board (Badan Pengawasan
              Keuangan dan Pembangunan
BKPPD         Badan Kepegawaian, Pendidikan dan Pelatihan Daerah
CQS           Selection Based on Consultants‘ Qualifications
DA            Designated (Special) Account
DG            Director General
DIPA          Daftar Isian Pelaksanaan Anggaran or Government of Indonesia
              Annual Budget Allocation Document
EA            Environmental Assessment
EDFF          Economic Development Financing Facility (The Project)
EIA           Environment Impact Assessment
EMP           Environmental Management Plan
ESMF          Environmental and Social Management Framework
EST           External Supervision Team
FM            Financial Management
FMA           Financial Management Assessment
FMS           Financial Management Specialist
GoA           Government of Aceh
GoI           Government of Indonesia
ICB           International Competitive Bidding
IC            Individual Consultants
IDA           International Development Association
IFR           Interim Financial Report
KPA           Kuasa Pengguna Anggaran or Authorized Budget Holder
KPDT          Ministry for Disadvantaged Areas (of GoI)
KPI           Key Performance Indicator
KPPN          Kantor Pelayanan Perbendaharaan Negara (Special Treasury Office)
LGIP          Local Government Annual Investment Plan
MBD           Model Bidding Documents
MDF           Multi-Donor Trust Fund for Aceh and North Sumatra
MoF           Ministry of Finance
MoU           Memorandum of Understanding
MoA           Memorandum of Agreement
MTR           Mid Term Review
NCB           National Competitive Bidding
NCER          National Centre for Econometric Research
NGO           Non-Governmental Organization
NOL           Non-Objection Letter from World bank
O&M           Operations and Maintenance
PGIP          Provincial Government Annual Investment Plan
OM            Operational Manual
PA            Pengguna Anggaran or Budget Holder
PMU           Project Management Unit
PMC           Project Management Consultants
QBS           Quality-Based Selection
                                                                                 5
QCBS      Quality and Cost Based Selection
RFP       Request For Proposal
RKL/RPL   Rencana Pengelolaan Lingkungan/Rencana Pemantauan Lingkungan
EMP       or Environmental Management Plan /Environmental Monitoring
          Plan
RPJMD     Medium Term Development Plan of the Government of Aceh
SATKER    Satuan Kerja Perangkat Daerah (Regional Working Unit)
SBD       Standard Bidding Documents
SIE       Sub-project Implementing Entity
SA        Segregate Account
SGA       Sub-grant Agreement
SOE       Statement of Expenditures
SP2D      Surat Perintah Penyaluran Dana or Letter of Instruction for
          Disbursement (issued by KPPN)
SPP-LS    Surat Perintah Membayar Langsung or Letter of Instruction for
          Payment (issued by KPA)
SSS       Single-Source Selection
TA        Technical Assistance
TBD       To be determined
TL        Team Leader
TOR       Terms of Reference
UKL/UPL   Upaya Pengelolaan Lingkungan/Upaya Pemantauan Lingkungan or
          Environmental Management Efforts/Environmental Monitoring
          Efforts
WA        Withdrawal application
WB        World Bank




                                                                          6
Executive Summary

As per Terms of Reference1 the primary objectives of the Project Management Consultant
(PMC) are 1) to provide project management services to PMU and 2) build capacity within
the Government of Aceh (GoA) for the Project Management Unit (PMU) to operate
effectively in terms of selection, evaluation and supervision of sub-projects. In respect of
providing management services to PMU and as detailed in the various chapters of this report,
PMC works hand in hand with PMU/Bappeda staff and involves the latter in all activities of
EDFF that are the responsibility of PMU. The provision of these services does also act as
hands-on capacity building of PMU/Bappeda staff. In addition formal trainings have also
been done and are planned in line with the PMU capacity building plan2.

According to the Contract for Consultancy Services PMC should prepare the inception report
in two stages. The 1st one should be submitted after one month of the start of PMC and the 2nd
one after another month. This was not accomplished because the GoA/Bappeda and the
World Bank (WB) requested the Consultant to concentrate on the (still ongoing) selection
process first. Hence only one inception report is prepared and it is this one.

EDFF Grant Agreement

On December 5, 2008 the World Bank (WB) Project Appraisal Document (PAD) on a
proposed grant of the amount of US $50 million to the Republic of Indonesia for the Aceh -
Economic Development Financing Facility (EDFF) project was approved. Subsequently the
Multi Donor Trust Fund for Aceh and North Sumatra (MDTF) implementation agreement
was signed between the Ministry of Finance (MoF) and the International Development
Association (IDA) on December 30, 2008. The grant became effective on March 30, 2009.

Implementing agencies of EDFF

The Ministry for Disadvantaged Areas (KPDT) is the implementing agency at the central
level while in Aceh it is the Government of Aceh (GoA) through Bappeda, the Provincial
Planning Agency.

Timing and Duration

The EDFF project will be implemented during the January 2009 - June 2012 period.

EDFF Components

The project has two major components.

Component One (US$44.5 million) will support sub-projects that address critical issues
affecting economic development in Aceh by contributing to building a more competitive and
supportive business environment necessary to create broad-based private sector job
opportunities and growth in Aceh, targeting the poor and other vulnerable groups. Sub-
projects will be implemented by Sub-project Implementing Entities (SIEs) such as Non
Government Organisations (NGOs), local, national and/or international, private sector
associations and international aid agencies. They will be responsible for ensuring that the


1   Annex 5: Terms of Reference PMC
2   Annex 6: PMU/KPDT Capacity building plan

                                                                                            7
sub-projects remain consistent with EDFF goals and are in line with the Medium Term
Development Plan of the Government of Aceh (RPJMD) and Bappenas‘ Recipient‘s Master
Plan of Regional Rehabilitation and Reconstruction (Perpres 47/2008). Component Two
(US$5.5 million) is for funding project management and capacity building for PMU/Bappeda
and the KPDT. Component II includes Project Management Consultants (PMC) that will
assist, support and build this capacity with the Project Management Unit (PMU) and the
KPDT EDFF Secretariat. This will include sub-project assessment and review, procurement,
financial management, safeguards compliance, implementation, supervision, and, monitoring.

Inception Report

In part I and II of this Inception Report the major activities in respect of both physical &
financial management progress undertaken by the EDFF Secretariat of the KPDT, the PMU
and the PMC since the start of the Project in January 2009 are detailed.
In part III, key activities by the PMU/KPDT Units for the months ahead are given.
Finally part IV is about lessons learned, observations and concerns and based on these some
recommendations regarding proposed revisions in the Programme management and its budget
are provided.

The detailed activities of the PMU for the remaining project period are described separately
in the EDFF Work Plan and Budget for 2010-2012. In respect of other inception reporting
requirements, the proposed PMU/KPDT Capacity Building Plan (EDFF component 2) can be
consulted in Annex 8 of the earlier World Bank approved Operational Manual (OM) for
EDFF and for the description and example of standardized forms, charts and tables that will
constitute the quarterly and annual progress reports, see the 4th Quarter 2009 progress report.

Major activities undertaken

Activities prior to deployment of PMC, January – September 2009

       Key events and activities conducted prior to deployment of PMC were the establishment
        of the Satuan Kerja (Satker) for the Project‘s administrative affairs and the PMU for the
        technical implementation. Information campaigns on EDFF, a Call for Proposals inviting
        NGOs and other entities to submit sub-project proposals and socialisation of proponents
        on the EDFF project among others were also conducted before the PMC joined.

Deployment of PMC, September 2009

       The PMC was deployed on September 11, 2009 after which the factual implementation of
        EDFF started3.

Assessment and selection of SIE Sub-project Proposals and First NOL World Bank,
September 2009 – February 2010

       However after deployment of the PMC, the Hari Raya Idul Fitri 2009 holiday was on-
        going, creating some delays and hence the actual opening by PMU and PMC of the
        proposals of sub-projects submitted by interested SIEs and other entities took place on 28
        September 2009. This was done in the presence of Senior Officers of Bappeda and the
        Government of Aceh (GoA)4. Immediately thereafter the PMU assisted by the PMC

3   Annex 7: PMC Notice to proceed
4
    Annex 8: Minutes of meeting, results, opening envelopes sub-projects, see also selection manual in OM Annex 3for the followed process

                                                                                                                                            8
       started the assessment process following the agreed criteria laid out in the PAD and the
       Call of Proposals.

      By the end of December 2009 the PMU forwarded the list of recommended sub-projects
       to the EDFF Selection Committee. The Committee finished its evaluation by Feb.5, 2010.

      The PMU reviewed the report of the Committee and immediately thereafter sent it to the
       WB for providing the first Non-Objection Letter (NOL) for the recommended sub-
       projects. The WB is required to provide non-objection to sub-project proposals twice. The
       reason is that in line with the requirements in the Call of Proposals, the potential SIEs
       initially submitted more of a concept paper/preliminary sub-project proposal. Submission
       of complete project proposal documents to PMU would come after the first NOL and
       after negotiations and consultations between provisionally selected SIEs, PMU and Local
       Governments concerned, and after an agreement is reached on the final design and budget
       of the sub-projects by parties concerned.

      The 1st NOL to eight selected sub-projects/SIEs covering 13 districts (out of 24
       districts/cities in Aceh) was given on Wednesday the 10th of February 20105.

Completion of EDFF Operations Manual, October 2009 – January 2010

      The first draft of the Operations Manual was made by the PMU before the arrival of the
       PMC. In October 2009 joint PMU/ PMC Teams took over the drafting process and were
       able to complete the final draft of the Manual by the end of January 2010. This draft
       (English version) was endorsed by KPDT on the 8th of February and approved by the
       World Bank on the 10th of February 2010.

      The OM includes ten sections focussing on: 1) Procurement, 2) SIE Selection, 3) M & E,
       4) Environmental and Social Safeguarding, 5) Financial Management, 6) Better
       Governance, 7) Communication and Visibility, 8) Training and Capacity Building, 9)
       EDFF Grant Agreement, and, 10) draft of Subproject Grant Agreement (SGA)

      The Bahasa Indonesia version of the OM was completed by March 2010. KPDT intends
       to socialize the OM with various parties in Jakarta (including BPKP, Ministry of Finance,
       a.o.) for comments and upgrading. All changes in the OM require a NOL from the World
       Bank.

EDFF launching in Aceh, December 2009

      The EDFF project was officially launched in Banda Aceh on 8 December 2009, by the
       Minister for KPDT, H.E. Ir. Helmy Faisal Zaini and in the presence of chief
       representatives of the Governments of Aceh, the KPDT Ministry, Bappenas, the WB, the
       PMU and PMC, civil society representatives and the press.

Capacity building and workshops, September 2009 – March 2010

      On the job training is a key activity In respect of Component II i.e. capacity building for
       PMU/Bappeda and the KPDT. Some strategic formal PMU/KPDT staff
       training/workshops also took place in Jakarta on the Socialisation of EDFF and SIE
       Selection and Financial Management in November and December 2009.

5   Annex 1: list of sub-projects and implementing SIEs and districts covered

                                                                                                9
   Most training, study tours and other capacity building activities are planned to be
    conducted in 2010 and thereafter. As mentioned above the ―transition plan for capacity
    building in PMU and handover of full responsibilities to local staff before the end of the
    consulting contract‖ can be found in Annex 10 of the OM.

   A workshop with provisionally selected SIEs was conducted on Thursday 11 February
    2010, right after receiving the 1st NOL from WB, to brief the SIEs on various issues
    related to project implementation. All PMU Units presented their plans and procedures
    for SIEs to follow. Discussion was held and commitments and schedules made during this
    workshop. Gaps were also identified and ways explored to resolve these timely.

Financial Management, October 2009 – March 2010

   Work on the Financial Management Manual (FMM) and other critical financial
    management activities were commenced in the Inception Period. The EDFF 2010 budget
    was timely submitted for inclusion in the DIPA 2010. In February 2010 it was concluded
    that the method of replenishment to be changed from transaction based to Interim
    Financial Report (IFR) based. The Special (Designated) Account so far only provides a
    ceiling of US$ 5,000,000. In the meantime an amendment of this figure reflecting the
    actual need is about to be approved by concerned authorities. The fund requirement for
    both EDFF components for the period April-September 2010 is estimated at USD
    18,603,945.16. The balance in the Special Account by 31st March, 2010 was USD
    4,624,598.52. Hence the total additional requirement requested for April-September 2010
    is USD 13,979,346.64.

   A review of the SIE budgets and the formulation of a standard format with supporting
    guidelines were also completed. Budgets of the selected sub-projects were analysed and
    standardised budget formats developed and presented to SIEs to follow when making their
    final project budget documents. Standardisation is needed for easy monitoring and
    comparison. By the time of writing this report, all budgets have been reviewed and most
    SIEs have submitted their revised budgets.

   In the workshop with SIEs conducted in February 2010 questionnaires to assess the
    financial capacity and capabilities of SIEs were also designed, presented and distributed.
    Schedules were made to visit each SIE to confirm the information provided by the SIEs
    and to complete the assessment, determine gaps and to resolve these before funds are
    disbursed. The PMU/ PMC Financial Management Unit will conduct the financial
    management assessment of each SIE that passed of the First NOL of the World Bank. The
    assessment is undertaken in consultation with Taskforce Manager and the Financial
    Management Analyst of the World Bank.

Negotiations between SIE, PMU and Local Government of Aceh, February – March 2010

   The negotiation and consultation phase with SIEs and local governments concerned
    started right after the 1st NOL. These consultations and negotiations are deemed important
    to select only sub-projects that will have a maximum chance of success, guaranteed
    sustainability and hence are in line with GoA development priorities. The plan is that this
    will be formalised through a Memorandum of Understanding (MoU) between the SIE,
    Local Government and PMU.



                                                                                            10
Preparing for Sub-grant Agreement between SIE and Satker, February – March 2010

       By the end of March 2010 this negotiation and consultation phase is still ongoing and will
        continue in April and may still continue into May 2010. During this period and on a
        staggered basis, SIEs will finish their final documentation agreed with PMU. The PMU
        will then forward the agreed final proposal and budget to the WB for providing the 2nd
        NOL also on a staggered basis if this will facilitate early implementation by SIEs.

       KPDT in consultation with the Ministry of Foreign Affairs will sign a Memorandum of
        Understanding (MOU) with the International SIEs and the Ministry of Foreign Affairs
        providing an operational permit.

       After the 2nd NOL has been given, probably again on a staggered basis, the concerned SIE
        will then sign a Sub-Grant Agreement (SGA) with Satker. The MoU between the SIE,
        Local Government concerned and PMU will be an attachment to this SGA and form an
        integral part of it. After that the agreed advance payment will be arranged and the
        concerned SIE can mobilise its staff and start implementation of its sub-project in the
        concerned district(s). The expectation is that by the end of April or even May 2010 the
        first SIEs will have signed the SGA and can start operations6.

        The Consultant would like to express its concern though about the very short
        implementation period left which in its view may cast doubt on achieving the EDFF
        objectives as specified in the PAD and other official documents. Initial expectations
        regarding outputs and outcome will need to be tuned down. There are various reasons
        why delays have occurred which are beyond the control of the Consultant such as lack of
        experience of key partners with the innovative concept of EDFF; the late opening of the
        proposal envelops, the time it took the Selection Committee to recommend selections to
        PMU; need for synchronisation meetings with all districts covered; the substantial
        documentation required by WB and GoI and the lack of experience of the SIEs to prepare
        these documents; more on this in chapter 7.

Coordination

       As the EDFF has a complicated organisational/ institutional set-up, co-ordination among
        internal and external stakeholders is vital for ―survival‖. Hence several co-ordination
        meetings/workshops have already been conducted with a variety of stakeholders and will
        continue to be conducted during the course of the Project to ensure smooth project
        implementation.

Latest developments

       Most SIEs have submitted final budget revisions, due to reduction in districts, shortened
        implementation time because delays incurred and some technical adjustments. This has
        generated savings of around 5 million US$. One SIE lost interest in joining the EDFF
        because of the time constraint on implementation and technical issues. This resulted in
        another 5 million not yet allocated. So in total around 10 million US$ is available and a
        few more sub-projects from the original list submitted to the Selection Committee, could
        be implemented7. In the meantime the sub-projects of these SIEs will be re-submitted to

6
    Annex 3: Updated time and activity schedule

7   Annex 1: List of sub-projects and implementing SIEs and districts covered

                                                                                               11
    the Selection Committee for prioritisation so PMU can enter into discussion with some of
    these prioritised SIEs. It has to be said though that without an extension it seems not
    really feasible for these SIEs to start unless major revisions of activities are done.

Overall Observations, Conclusions and Recommendations

   In the 4th Quarter 2009 Progress Report a number of recommended improvements to the
    selection process were provided for the benefit of KPDT and other interested parties in
    case replication elsewhere of the EDFF ―model‖ would be considered. These ‗Overall
    Observations, Conclusions and Recommendations‘ and others are provided in Part V. A
    number of important issues concerning the operations of EDFF related to Component 1
    (sub-project implementation) and Component 2 (capacity building) are also included in
    Part V. Recommendations are made for additional local technical assistance and more
    regular staff to be assigned to the PMU and Satker. Extra funds for the training and
    operational budget lines to increase the management capacity of the PMU are also
    proposed. Budget implications are cost neutral and will be financed from savings in the
    Technical Assistance Contract for Services.

Summmary of tasks

A summary of the tasks, activities and underlying assumptions for each PMU Unit (M&E,
Finance, Procurement, Safeguards and Ethics and Communication and Training) for the
months ahead are given in Part VI of this report. Complete details on planned PMU activities
etc. can be found in the EDFF Work Plan and Budget for 2010 to 2012 which is still a work
in progress and depends on the acceptance of the recommendations given in this inception
report.




                                                                                         12
PART I: INTRODUCTION AND BACKGROUND,
       PROJECT COST AND STRUCTURE, MAJOR
       PLAYERS

1. Introduction

The preparation of this Inception Report is part of the contractual obligations of the PMC of
BMB Mott-MacDonald/PT PPA with the Government of Aceh.

The Report covers the period January 2009 – February 2010 and describes in Part I & II the
major activities undertaken by the Project Management Unit (PMU), the Ministry for
Disadvantaged Areas (KPDT) EDFF Secretariat and the Project Management Consultant
(PMC) including the movement of EDFF funds under the Contract for Consultant‘s Services
during the period.

In Part III, key activities of each PMU Unit and the KPDT Secretariat for the coming months
are provided. Finally Part IV is about lessons learned, observations and concerns and based
on these some recommendations are provided regarding proposed revisions in the Programme
and its budget implications.

The Report is supposed to include a ―transition plan for capacity building in PMU and
handover of full responsibilities to local staff before the end of the consulting contract‖. As
such a plan has already been provided in Annex 10 of the earlier approved Operational
Manual (OM) and can be consulted there. The 2010-2012 Global Work Plan for PMU is a
stand-alone document also distributed separately. More complete details on PMU activities
etc. can be found in this EDFF Work Plan and Budget for 2010 to 2012. In respect of other
inception reporting requirements, the description and example of standardized forms, charts
and tables that will constitute the quarterly and annual progress reports, see the 4th Quarter
2009 progress report.

As per Terms of Reference8, the primary objectives of PMC are 1) to provide project
management services to PMU and 2) build capacity within the GoA for PMU to operate
effectively in terms of selection, evaluation and supervision of sub-projects. In respect of
providing management services to PMU and as detailed in the various chapters of this report,
PMC works hand in hand with PMU/Bappeda staff and involves the latter in all activities of
EDFF that are the responsibility of PMU. The provision of these services does also act as
hands-on capacity building of PMU/Bappeda staff. In addition formal trainings have been
conducted and are planned in line with the PMU capacity building plan9.

Below are the key functions of PMC as mentioned in the TOR. For each function a reference
is provided with the status of achievement.

1. Assist the GoA to establish the PMU (including necessary TORs for Government staff
   and finalization of the required sub-project application package) and for preparing a
   transition strategy (along with a training plan) to build capacity of GoA staff at the

8   Annex 5: TOR PMC
9   Annex 6: PMU/KPDT Capacity building Plan

                                                                                            13
       PMU so the PMU can function effectively without the need for extensive outside
       assistance by the end of the consultancy.
       Details on building the capacity of GoA staff at the PMU is given in part II & III of
       this report. See also annex 6 and 1010.

2. In the first year of operation, assist the PMU in the evaluation of sub-project applications
   and in the preparation of recommendations to the Selection Committee – this means that a
   relatively large number of technical and sectoral experts may be needed to evaluate
   proposals and make recommendations;
   See for achievements the 4th quarter progress report as well as part II & III of this
   inception report.

3. In the subsequent years of operation, assist the PMU to monitor and evaluate the sub-
   project on an on-going basis – the type of expertise is likely to be different after the first
   year, with greater emphasis on the monitoring of projects, transactions as well as the
   achievement of results.
   The M&E Unit is in the process to work out closely with the SIEs the M&E system
   that will be applied as soon as the sub-projects take off. See also part IV for
   activities ahead of the M&E Unit

4. Ensure that the operation of the PMU with regards to financial management,
   procurement, reporting and communications are at an acceptable level and in accordance
   to World Bank guidelines to minimize risk and ensure good reporting. When agencies
   implementing sub-project do not have the capacity to follow World Bank procurement
   guidelines, as indicated by the assessments undertaken by the PMU, the PMU might in
   that case provide procurement services to agencies implementing sub-project.
   Ongoing, see also part II & III about the progress as well as part IV about activities
   ahead of the Procurement Unit in this report.

5. Provide limited assistance to the Secretariate being set up by the KPDT in the
   implementation of the project at the central level, in particular in solving any
   administrative issues that may arise, facilitating the communication between the
   implementation agencies at the central and provincial level as well as assisting the KPDT
   in their role of monitoring project implementation.
   See progress in part II and III of this inception report.

6. Assist the KPDT to assess whether the EDFF project is a model to promote economic and
   private sector development that can be replicated in other provinces in Indonesia and
   possibly to assist in the design of the replication of the model as deemed appropriate by
   KPDT.
   See progress in part II and III of this inception report.




10   Annex 10: Personnel and Staffing PMU

                                                                                              14
7. Design, coordinate and implement capacity building training programs to increase the
   capacity of BAPPEDA and GoA staff to implement similar projects in the future.
   Programs should start within 6 months of the Consultant mobilization;
   See progress in Part II & III and Annex 6

8. Develop partnership with NGOs and donors already involved in local government
   capacity building.
   Ongoing

According to the Contract for Consultancy Services PMC should prepare the inception report
in two stages. The 1st one should be submitted after one month of the start of PMC and the 2nd
one after another month. This was not accomplished because the Client and WB requested
the Consultant to concentrate on the (still ongoing) selection process first. Hence only one
inception report is prepared and it is this one.


2. Project Background

Aceh is in a time of positive transition. Following 30 years of armed conflict and the
devastation of the 2004 earthquake and tsunami and the 2005 earthquake, the immediate post-
tsunami recovery period is reaching its end, and long-term development is now underway.
Over the last four years, the overall progress of post-tsunami reconstruction and rehabilitation
has been significant. Under the leadership of the Rehabilitation and Reconstruction Agency
for Aceh and Nias (BRR NAD Nias), more than 127,000 houses and other community
infrastructure has been rebuilt and livelihoods have been restored for many of the 680,000
displaced people.

The Government of Indonesia (GoI) has demonstrated a strong commitment to peace in Aceh
and provides continuous support to the Government of Aceh (GoA). This has resulted in a
solid foundation to sustaining peace in the Province after 30 years of conflict between the
Free Aceh Movement (Gerakan Aceh Merdeka/GAM) and the GoI. Since the immediate
aftermath of the disasters, the international donor community has played a significant role in
the recovery process and has committed to continue its support.

The reconstruction effort, estimated at approximately US$ 7.7 billion over a five-year period
(2005-2009), is one of the largest such efforts in a developing country and has been lifting
Aceh‘s economy in the short-term, being the main driver of economic growth. Maintaining
and expanding sustainable development of Aceh is the next challenge for the GoA.

In its Medium Term Development Plan (RPJMD), as well as in the Bappenas‘ Recipient‘s
Master Plan of Regional Rehabilitation and Reconstruction (Perpres 47/2008), key factors
hampering Aceh‘s economic development have been identified such as weak government
institutions, damaged infrastructure and low investment levels. The RPJMD also identified
key constraints for economic activity for some sectors: in agriculture availability of land, low
productivity and low quality of production; constraints on access to inputs and markets; in
manufacturing weak business environment, as well as the failure to adopt technological
changes.

The Multi-Donor Trust Fud for Aceh and Nias (MDTF) brought together a pool of over
US$650 million in pledged grant resources provided by donor countries and international

                                                                                             15
organizations to support the implementation of the Government's rehabilitation and
reconstruction plans, including support for sustainable recovery of the economy in the
province. The MDTF-funded EDFF project is one of the means provided to the GoA and
intended to contribute to sustainable economic development and poverty alleviation in the
province. It will provide financing for ongoing activities which focus on the promotion of
sustainable economic growth and the rehabilitation of livelihoods, with proven results to
scale up quickly for greater impact on employment and long term economic development.
The Project will also seek to provide financial support to new projects designed to fill other
economic development gaps.

EDFF consists of two main components that will be implemented during the January 2009 –
June 2012 period.

Component One (US$ 44.5 million) will support sub-projects that address critical issues
affecting economic development in Aceh by contributing to building a more competitive and
supportive business environment necessary so to create broad-based private sector job
opportunities and growth in Aceh, thereby targeting the poor and other vulnerable groups.
Sub-projects will be implemented by Sub-project Implementing Entities (SIEs) such as Non
Government Organisations (NGOs), local, national and/or international, private sector
associations and international aid agencies. They will be responsible for ensuring that the
sub-projects remain consistent with EDFF goals and are in line with the GoA‘s RPJMD and
Bappenas‘ Recipient‘s Master Plan of Regional Rehabilitation and Reconstruction (Perpres
47/2008).

Sub-projects will target:

           (a)     Job-creation, market-driven enterprises engaged in value-added processing
                   and manufacturing, especially in agriculture and fisheries;

           (b)     Sustainable improvement of production quality and value in agriculture,
                   fisheries and estate crops that contributes to the alleviation of poverty;

           (c)     Increase in international trade, especially direct exports; and

           (d)     Increase in domestic and foreign investment in Aceh.

Expected outcomes are:

   (i) Improved Business Environment: a better enabling environment for private sector
        development and investment;
   (ii) Private Sector Support: support to improving the productivity of the private sector,
        farmers and fishermen; and
   (iii)Public Infrastructure: financing of economic infrastructure necessary for business
        development and job creation.

Component Two (US$5.5 million) is for funding project management and capacity building
for PMU/Bappeda and the KPDT. Component II also comprises the services of the
consultancy consortium BMB Mott-MacDonald of The Netherlands and PT PPA of
Indonesia that will assist, support and build the mentioned capacity with the PMU and the
KPDT secretariat. This will include sub-project assessment and review, procurement,
financial management, safeguards compliance, implementation, supervision, monitoring, etc.


                                                                                           16
3. Project costs
 Component                                            MDF         GoA               GOI
 1. Financing of Sub-projects                          44.50 --                --
 2. Support for the supervision of the EDFF,            5.50            0.65               2.2
    planning, design, selection of sub-projects,
    supervision, and implementation oversight
    (i) Technical Assistance (TA) support to the       5.255
         GoA and BAPPEDA for PMU
    (ii) Incremental Operating Costs (IOC) and         0.245            0.65               2.2
         performance and financial audit of project
         financial statements
 Total (US$ million)                                   50.00        0.65                  2.2



4. EDFF Project structure




   5. Major players in EDFF
Bappenas

Bappenas, as the GoI‘s executing agency, will be responsible for the overall planning and
evaluation of the project consistent with the Grant agreement between the WB and GoI. It
will also provide the necessary co-ordination with the Ministry of Finance (MoF), the KPDT
and other central government agencies. Bappenas is also responsible for setting up a Project
Steering Committee at the central government level that will provide policy guidance to the
KPDT and the GoA on project implementation to ensure all administrative procedures are in
accordance with GoI laws and regulations, as well as the adherence of the project as a whole
to Bappenas‘ Recipient‘s Master Plan of Regional Rehabilitation and Reconstruction (Perpres
47/2008) for Aceh‘s reconstruction. Bappenas will be responsible for counterpart financing
(government staff honoraria, taxes and other operational expenses) for Bappenas and KPDT.


                                                                                                17
Ministry for Disadvantaged Areas (KPDT)

The KPDT, as the implementing agency at the central level, is responsible for overall
implementation of the project. KPDT is a member of the Selection Committee and also
provides operational guidance to facilitate as well as monitor and evaluate project
implementation. It is responsible for budget execution, including making an annual budget
application to the Ministry of Finance and setting up a project Satker, to be located in Aceh,
which is responsible for overall management of the annual budget (DIPA) and its
administration.

KPDT will delegate the budget to the provincial government in Aceh as Dana Tugas
Pembantuan. It is responsible for dealing with withdrawal applications by the sub-project
implementing entities (SIEs), after they have been reviewed and approved by the PMU. The
KPDT established a Secretariat to assist with project implementation at the central
government level as well as assess project implementation for possible replication in other
provinces. Finally, KPDT is also responsible for the internal audit of the project as well as
overseeing the external audit to be conducted by the BPKP (Financial and Development
Supervisory Board (Badan Pengawasan Keuangan dan Pembangunan). The operational costs
to finance Satker, KPDT Secretariat and staff to fulfil these responsibilities are taken from
counterpart financing allocated by Bappenas to the KPDT.

The Office of the ACEH Governor

A representative of the office of the Governor of Aceh is a member of the Selection
Committee to ensure that the GoA‘s views are represented in the selection of sub-projects.

Bappeda Aceh

Bappeda Aceh is the implementing agency of EDFF at the provincial level to ensure that
EDFF supports the implementation of the GoA‘s strategies related to the economic
development in the province. The Coordination Team of the EDFF project from the related
DINAS established by Bappeda is also providing support. It is key to ensuring the support of
the relevant Government Agencies and Departments (DINAS) and District Governments for
activities financed through this project.
Bappeda also facilitates the participation of the relevant districts and/or DINAS in the
identification of priorities and design of sub-projects. NGOs proposing sub-projects for EDFF
funding are required to consult extensively with the relevant DINAS and district governments
and to report the results of their consultation in their proposals.

Bappeda manages the PMU and is a key player in the selection of sub-projects through its
membership of the Selection Committee. It will monitor the progress of the sub-projects,
primarily through the PMU, and be responsible for progress reports and monitoring and
evaluation of Sub-project Implementing Entities.

Project Management Unit (PMU)

The PMU is located in Bappeda and consists of selected GoA/Bappeda staff. The PMU is
assisted by the PMC that is attached to the PMU. The PMC is hired with EDFF funding
(Component two). The PMU is responsible for the evaluation of sub-project proposals and
overall project implementation and monitoring & evaluation (M&E), thereby supported by
the PMC. The PMU also ensures that financial management, procurement, communications

                                                                                           18
and reporting systems are well established and maintained. The EDFF Operations Manual
(OM) guides the PMU and all other concerned stakeholders with project implementation and
details project-related policies and procedures including details of the sub-project eligibility
and M&E criteria. The OM and any revisions are subject to ―Non-Objection‖ by the WB with
prior endorsement by KPDT.

World Bank (WB)

The WB, as partner agency, will oversee the project. Its responsibilities include: (i) appraisal;
(ii) supervision of the project; (iii) review of the PMU‘s evaluation report on each of the
proposals submitted to the Selection Committee as well as the Selection Committee‘s report
on the selection of sub-projects and issuing a first No-Objection Letter (NOL) for each
proposed selection. Subsequently it will (iv) review all completed sub-project packages
before they are commenced and issue a NOL for each, (v) monitor results and report to the
MDF on a six-monthly basis and (vi) administer the grant.

Sub-project Implementing Entities (SIEs)

The Sub-projects are implemented by different SIEs (NGOs: local, national or international,
private sector associations and international aid agencies) which are responsible for ensuring
that the Sub-projects remain consistent with EDFF goals and are in line with the GoA‘s
RPJMD and Bappenas‘ Recipient‘s Master Plan of Regional Rehabilitation and
Reconstruction (Perpres 47/2008). SIEs prepare the Sub-project proposal and are responsible
for tracking performance of their individual Sub-projects consistent with agreed milestones
and performance indicators.

Sub-project Selection Committee

The Committee consists of four members and is responsible for the final selection of sub-
projects. The Committee is composed of a representative of the Office of the Governor of
Aceh, the Head of Bappeda Aceh, a representative of KPDT and a member selected from the
academic community in Aceh. It reviews sub-project proposals after they have passed a
preliminary screening performed by a PMC team attached to the PMU.

Consulting Firm

The consulting consortium, BMB Mott-Macdonald of The Netherlands and PT PPA of
Indonesia, has two key inter-related roles. The consortium through its PMC is firstly
responsible for facilitating the effective operation of the PMU, and secondly it builds capacity
within the GoA/Bappeda to progressively assume the lead managerial role over PMU and
simultaneously builds the capacity of the KPDT to implement similar projects in other
provinces if the Aceh approach/‖model‖ proves replicable.

The PMC also assists the PMU in the evaluation of sub-project proposals and in the
preparation of recommendations to the Selection Committee, the drafting of sub-grant
agreements between the PMU and SIEs selected to implement sub-projects, as well as in the
monitoring and evaluation of sub-projects. The PMC also ensures that the operation of PMU
with regards to financial management, procurement and communications are at an acceptable
level to minimize risk and ensure good reporting.

Furthermore the consulting firm provides assistance through the PMC to the KPDT in the
implementation of the project at the central level, in particular in solving any administrative
                                                                                              19
issues that may arise, dealing with withdrawal applications in a timely manner to facilitate
project implementation, facilitating the communication between the implementation agencies
at the central and provincial level as well as assisting KPDT in its role of monitoring project
implementation. Assistance will also be provided to the KPDT to assess whether the EDFF is
a model that can be replicated in other provinces in Indonesia and build their capacity to
implement similar projects in the future.

Private Sector

Ultimately, businesses together with individuals will be the beneficiaries of the EDFF project,
and therefore will be ineligible to submit applications for sub-projects. The private sector will
however be the primary beneficiary of the EDFF, having been identified by the RPJMD as a
key partner of the GoA in the development of Aceh. It is anticipated and will be encouraged
that the private sector as well as local communities and local governments will be consulted
at various stages during the life of the EDFF.

The private sector was consulted during project preparation to help identify key constraints
and opportunities in respect of sustainable economic growth. The GoA/PMU organized
consultations with representatives of the private sector before launching the Call for
Proposals to present the priorities for economic development identified by the project that
would be likely to receive financing and seek opinions from the Acehnese business
community.

Beneficiary communities

Beneficiary communities will be involved primarily at the sub-project level. Sub-project
proposals should elaborate on the type of consultations that have already taken place as well
as the type of involvement foreseen to discuss sub-project design, implementation as well as
to include the opinion of beneficiary communities in the monitoring and evaluation of sub-
projects. The extent to which the entity proposing a sub-project has undertaken consultations
with the beneficiary communities and the relevant Dinas and/or District Government and the
degree of ownership of the project by these will be key selection criteria.




                                                                                              20
PART II: PHYSICAL PROGRESS
   6. Activities before arrival of the PMC: January – September 2009
On December 5, 2008 the Project Appraisal Document (PAD) for a proposed grant in the
amount of US $50 million to the Republic of Indonesia for the Aceh - Economic
Development Financing Facility (EDFF) project was approved.

On December 30 2008 the Multi-Donor Trust Fund for Aceh and North Sumatra (MDTF)
Agreement between the Ministry of Finance (MoF) and the International Development
Association (IDA) was signed. The Agreement specifies the implementation modalities of the
EDFF.

Next the Government of Indonesia (GoI) signed an agreement with the Ministry for
Disadvantaged Areas (KPDT) to be the implementing agency for the project at the central
level. The Bappenas, by mandate, is the GoI‘s executing agency.

Both Satker and PMU became operational in March 2009, this being one of the conditions for
declaring the Grant Agreement (GA) effective. The GA became effective on March 31 2009
after the ―Surat Keputusan‖ (SK) for Satker was changed twice by KPDT.

On April 26, 2009 the Call for Proposals was announced. The closing date for submission of
sub-project proposals was June 25, 2009 and the official opening of the envelopes took place
on September 28, 2009. Before issuing the Call of Proposals, the EDFF project was
socialised in the period November 2008 to June 2009 among NGOs and other
stakeholders/interested parties at various occasions using different mediums such as briefings
at Bappeda, workshops, newspapers, email and Government and MDTF websites.



   7. Activities after arrival of the PMC: September 2009 – March 2010
At KPDT

Staffing and PMC

Although officially established by a Decree of the Minister signed on February 3 2009, the
KPDT EDFF Secretariat did not become fully operational during the inception period. By
March 2010 only the Head of the Secretariat was available and on a part-time basis. Starting
in October 2009 the PMC International Deputy Team Leader (DTL), the National Financial
Management and the Institutional Development Specialist joined the Secretariate. The latter
however resigned after one month, because he felt the job was not in line with his
capabilities. The National M&E consultant could not join at KPDT because of health reasons.
The National Finance specialist is also about to resign because of incompatibility with the job
assigned. For all three national consultants replacements have been forwarded to the Satker
for endorsement to the WB but it took time because PMC had to follow time consuming
selection procedures as required by the WB and Satker to replace consultants originally
included in the Contract for Consultant Services. By the time of this writing their
appointments are still pending. In addition to the PMC Experts, consultants that are directly


                                                                                            21
hired by KPDT have been made available by the Ministry at the EDFF Secretariat. However,
only on a part-time basis as they are also involved in other KPDT activities.

During the EDFF Evaluation/ Progress meeting conducted on 8-9 March 2010, as well as
during a recent Technical Evaluation Meeting on EDFF at the Grand Cemara Hotel, Jakarta,
KPDT declared that the Secretariat would be filled with KPDT staff within a short time but
until the writing of this document no such staff was posted at the Secretariat. In the meantime
the DTL Mr. Hans Rolloos resigned his post because of these and other reasons and will
leave the project by April 30 2010. Potential candidates to replace Mr. Rolloos were
recommended to the Client and WB.

During the inception period, the DTL PMC has been assigned intermittently to PMU to help
facilitate the selection process and he contributed to all PMU activities during that period in
Banda Aceh as well as when he was working at KPDT. The National KPDT Financial
Management Expert worked also at PMU in Banda Aceh to assist the Finance Unit with
preparing the financial management manual.

At PMU

Mobilization of PMC

On September 11, 2009 the first batch of PMC Experts was mobilized. This comprised the
International Team Leader (TL), the International Procurement Expert and the International
Monitoring and Evaluation Expert. The Safeguards and Ethics Specialist joined a bit later.

The International Finance Expert had to be replaced because of health concerns. Also the
short term International Agricultural Expert was replaced timely thanks to the quick response
by authorising parties. A National Expert for Monitoring and Evaluation, Expert and the
Office Assistant joined soon after that at PMU. Also the Office Manager was mobilized and
the Project Co-ordinator position/national procurement expert at PMU was filled. Two
National consultants from PT PPA, the National Safeguards and Ethics Expert and the
Financial Management Expert could not join the PMU because they were still engaged in
other WB funded projects. They joined the PMC mid-January and on February 1, 2010
respectively. The earlier selected PT PPA Training & Communication Expert at PMU was
not able to join and was replaced sometime in January too. For an overview of the
mobilisation schedule and status of PMC by the end of this inception period see annex 211.

Furnishing of project offices

Following the arrival of the first batch of PMC Experts, the PMU Office and the KPDT
Secretariat were reorganised. Furniture, ICT networks, equipment and other office facilities
were (re) installed and transport facilities arranged12.
Support staff was hired and office management systems concerning financial management,
including invoicing, were installed.




11   Annex 2: Mobilisation schedule and status of PMC by the end of the inception period
12
     Annex11: List of PMC equipments and other procurements


                                                                                            22
Both at KPDT and PMU

Familiarization
Familiarization meetings were conducted between PMC, PMU and staff of the KPDT
Secretariat. Introductory meetings were also held with Satker/Bappeda and WB Officials in
Aceh and Jakarta. PMU-PMC conducted weekly staff meetings with participation of Satker
and WB on an ad hic basis.

Socialisation of EDFF

KPDT, PMU/PMC and Satker organised a number of events for the purpose of socialisation
of the EDFF project. Satker also conducted briefing sessions with the Heads of Provincial
Departments, Heads of Districts and other Government of Aceh institutions. The PMU
organised field visits to districts in Aceh for information gathering on development priorities
and socialisation in general. At the same time the PMU informed and continues to inform the
general public and EDFF stakeholders about the latest developments and milestones achieved
by EDFF. A major socialisation activity took place after the tentative selection of sub-
projects/SIEs that got the 1st NOL (see below). All districts (13) were visited by PMU/PMC
and the concerned SIEs to brief the local governments on the sub-projects proposed for their
districts, to synchronise sub-project activities with local government development priorities
and to reach agreement on each other‘s contributions to the Project.

PMC/ PMU Action Plan

Directly after mobilisation of the PMC TL, the DTL, who as said was temporarily assigned at
PMU, jointly with the Head of PMU and other consultants prepared a PMC/PMU Action
Plan to steer the selection of the sub-project process. The Action Plan functioned as a
benchmark for the various planned EDFF activities at the PMU and KPDT. From October to
December 2009 implementation of the activities was on track and in line with the Action Plan
although some delays related to administrative constraints were encountered (see also 4th
quarter report 2009). The plan had to be revised however from January 2010 onwards as the
evaluation of sub-project proposals by the Selection Committee took more time than expected
and submission of final project documentation took much more time than foreseen initially13.

Preparation of the SIE Selection Manual

The SIE selection manual can be found in Annex 3 of the already approved OM. It describes
in detail the process followed. The Manual was prepared based on the guidelines given in the
PAD and the joint exercises conducted by the PMC and PMU in fine-tuning the criteria in the
PAD and Call for Proposals and the scoring system was developed.

Comments were requested from Bappeda/Satker, the KPDT Secretariat and WB Officials and
received and incorporated in the final draft.

The final draft of the SIE Selection Manual was presented during the National EDFF
Workshop conducted in Jakarta in November 2009. KPDT intends to print the Manual to be
used as a ‗handbook‘ for possible replication of EDFF in other disadvantaged areas in
Indonesia. Copies of the Manual were presented to the Minister of KPDT.


13   See Annex 3: Updated action plan

                                                                                            23
In December 2009 the Manual was translated into Bahasa Indonesia and put into the official
KPDT format. The Manual has also been the basis for the selection activities undertaken by
the EDFF Sub-project Selection Committee.

Fine-tuning of assessment criteria per PAD and planning the assessment/selection
process14

The assessment criteria in the PAD and Call for proposals for the 4 selection phases that the
sub-project proposals had to pass15 were fine-tuned and appropriate and transparent scoring
systems designed to facilitate professional selection of sub-project proposals.

The Phase II and III Technical Checks and the scoring system adapted were extensively
reviewed by the PMC Technical Experts for Fisheries, Livestock, Agriculture and SMEs
hired for the technical evaluation of the sub-projects that had passed the Administrative/
Phase I Check. Comments were also collected from the WB Representative in Aceh.

During various stages of fine-tuning the assessment/evaluation criteria, the PMC Experts
organised reviews and consultation sessions with the PMU.

Data and Milestones in the Selection Process

As said before the official opening of the envelopes took place on 28 September, 2009 in the
presence of the EDFF Assessment Committee and Officials of BAPPEA/ Satker. In total 83
SIEs submitted 121 proposals. The total amount requested in respect of the 121 sub-proposals
was US$ 371,307,000, giving an average of US$ 3.1 million per sub-project.

Administrative Check. A number of proposals (28) had to be rejected immediately as they
were not presented in English, which was a requirement in the Call for Proposals. One
proposal had to be rejected among others as the amount requested was below US$ 500,000.

Phase I Check assessment grid: A large number of proposals (52) had to be rejected due to no
track record/ insufficient experience in handling a relatively large economic recovery project
or because the SIE wanted to use part of the sub-grant to buy land (an illegible expenditure)
or had not been able to demonstrate clear evidence of local community support.

The Phase I Check resulted in 38 proposals being accepted for further evaluation in Phases II
and III. These 38 SIEs consisted of 22 international NGOs, 1 national NGO and 15 Acehnese
NGOs. The total amount requested in the 38 proposals was about US$ 150 million, giving an
average value of US$ 3.95 million per sub-project.

Phase II & III Technical Checks (with scoring)16

All Proposals were evaluated by at least two PMC Technical Experts, one of whom had the
specific technical background for the sub-project content (fisheries, agriculture, livestock or


14   For details on the selection process see Annex 3 in the approved OM
15 The Administrative Check, Phase I qualitative Technical Check sub-project/SIE, phase II Technical Check sub-project and
Phase III Technical Check SIE
16   For specific details see Annex 3 of OM and the PMC’s 4th quarterly report 2009

                                                                                                                      24
SME). In addition the PMC Environmental Expert assessed the risks related to environment
and ethics for each of the proposals.

Of the 38 proposals that were evaluated for Phase II, 22 were accepted for a Phase III
evaluation. After careful assessment 16 sub-projects received a positive recommendation17.

Organization of field verification trips

In November 2009 the Head of PMU, the PMC Team Leader and the Technical Experts spent
approximately two weeks in the field visiting key districts to discuss the viability of and
exchange information about the sub-projects proposed by the SIEs with local
authorities/private sector parties which at the same functioned as an enhanced EDFF
socialisation campaign. Consultations were held with Heads of Districts, Heads of
Government Departments, members of the target group community and general resource
persons. These meetings provided valuable information that supported to a large extent the
assessments made by the Technical Consultants of the PMC. In general it was felt by the
teams that such visits should have been more comprehensive. This was not feasible due to
restrictions imposed including administrative ones.

Following the visits the PMC proposed to have in due time a Memorandum of Understanding
(MoU) between the SIE, the local government and witnessed by PMU concerning co-
operation, participation and sustainability of the sub-project that will be implemented in the
respective district.

SIE Selection Committee

As referred to earlier, a Selection Committee, consisting of four persons was established in
December 2009 to make the final selection of sub-projects. The Committee is composed of a
representative of the Office of H.E. the Governor of Aceh, the Head of Bappeda Aceh, a
representative of KPDT and a member selected from the academic community in Aceh. The
selection of the Academician was carried out by Bappeda/Satker under the guidance of the
WB. The office of the Governor of Aceh is a part of the Selection Committee. It will ensure
that the Governor‘s views are represented. The selection of the member of the Selection
Committee from the academic community in Aceh followed an open and transparent process
and the person selected has a thorough knowledge of local economic development issues in
Aceh and a high standing in the academic community and civil society in general.

The Committee started the selection process in the third week of December and some
meetings were conducted by the Committee by the end of December 2009 and in January
2010. Members studied the sub-project proposals and the evaluation reports earlier prepared
for PMU by PMC Technical Consultants and assessed the relevance of the proposals in the
light of provincial and district economic development plans. The long list submitted by PMU
amounted to a total budget of around 80 million US$. Hence the Committee also had to
prioritise the proposals in order to arrive at the EDFF available budget of 44.5 million US$.
Various consultations with PMU and PMC took place during the evaluation period. Due to
the difficulty to meet as a team, the Academician frequently travelled to Jakarta to meet with




17   Annex 1: list of sub-projects and implementing SIEs and districts covered

                                                                                           25
the member of the KPDT to agree on the selection. For more information see also the Terms
of Reference of the Selection Committee18.

The Committee finally finished its evaluation by February 5, 2010. The PMU reviewed the
report of the Committee and immediately thereafter sent it to the WB for providing the first
Non-Objection Letter (NOL) for the recommended sub-projects. The WB is required to
provide non-objection to sub-project proposals twice. The reason is that in line with the
requirements in the Call of Proposals, the potential SIEs initially submitted more of a concept
paper/preliminary sub-project proposal. Submission of complete project proposal documents
to PMU would come after the first NOL and after negotiations and consultations between
provisionally selected SIEs, PMU and Local Governments concerned, and after an agreement
is reached on the final design and budget of the sub-projects with PMU. The 1st NOL was
given (within a week‘s time) outstandingly fast, also because consultations between the
Selection Committee and WB facilitated a speedy approval process.

Completion of the EDFF Operations Manual (OM)

The OM that guides project implementation and lists all project-related policies and
procedures was drafted during the inception phase (last quarter 2009). It details the project
description, the roles of various entities, implementation arrangements, the sub-project
selection manual, M&E procedures for all organizations involved in project implementation,
environmental and safeguards compliance procedures, procurement procedures, financial
management procedures, policies on better governance and training and communication and
visibility plans. All PMU Units and consultants have been heavily involved in preparing the
OM. The preparation of the manual was also on-the-job training for PMU staff.

Naturally during the preparation of the OM frequent consultations were conducted with
representatives of the WB, GoA and Bappeda/Satker and their valuable comments were
addressed in the final draft that was presented to KPDT and for non-objection by the WB.
KPDT endorsed the OM (English version) on February 10 2010 and the WB approved it on
the same day. The KPDT EDFF Secretariat facilitated the translation of the English version
of the OM into Bahasa Indonesia. By the time of writing this inception report, the Bahasa
Indonesian version of the OM is available but still needs to be socialized with relevant parties
in Jakarta such as the Department of Finance, Bappenas, National Audit Boards, a.o. for that
purpose a Bahasa Indonesia version of the OM was also produced by the Consultant. The WB
approved version of the OM must be seen as a first draft and can be amended when needed
but changes will require the endorsement of KPDT and NOL from the World Bank and PMC
will facilitate this process.

First NOL

The 1st NOL to eight selected sub-projects/SIEs covering 13 districts was given on
Wednesday the 10th of February 201019 following the endorsement of the EDFF Operations
Manual *English version) by KPDT. Immediately thereafter on February 11, a workshop
with the tentatively selected SIEs was conducted to brief them on the next steps. During the
workshop there were also presentations from the different PMU Units to explain the various
requirements for finalisation of the sub-project proposal documentation. The negotiation and
consultation phase with SIEs and local governments concerned started right after the
workshop. These consultations and negotiations were deemed necessary to ensure a

18   Annex 9: TOR Sub-project Selection Committee
19   Annex 1: list of eight sub-projects and implementing SIEs and districts covered

                                                                                             26
maximum chance of success of the proposed sub-projects and guaranteed sustainability. In
this respect the sub-projects should be in line with GoA development priorities. As mentioned
the collaboration between the local government and concerned SIE will be formalised in due
time through a MoU.

By mid-March this negotiation and consultation phase had ended. During this period and
thereafter, SIEs started to prepare their final documentation agreed with PMU and PMU then
will forward the agreed final proposal and budget to the WB for providing the 2nd NOL if
needed on a staggered basis to facilitate a speedy start in the field. After the 2nd NOL has
been given, the concerned SIE will then sign a Sub-Grant Agreement (SGA) with Satker. The
MoU between the SIE, local Government concerned and PMU as witness will be an
attachment to this SGA and form an integral part of it.

After that the agreed advance payment will be arranged and the concerned SIE can mobilise
its staff and start implementation of its sub-project in the concerned district(s). The
expectation is that by end April/May 2010 the first SIEs are operating (see table 2 above).

At the time of writing this inception report the SIEs have submitted the revisions of their sub-
project including budgets as well as drafts of required documentation on procurement,
finance and safeguards and ethics. Some issues still need to be resolved and clarified. For an
overview of the status on these issues and concerns see Chapter 7.

MOU between KPDT and SIE

KPDT in consultation with the Ministry of Foreign Affairs will sign a Memorandum of
Understanding (MOU) with the International SIEs and the Ministry of Foreign Affairs
providing an operational permit.

Training and capacity building

Formal training on procurement was arranged for one PMU member through the facilitation
of the Procurement Unit, who graduated with a ―Procurement Expert Certification L4 Level‖
from the Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah (LKPP Bappenas). Most
other capacity building efforts by PMC have been hands-on coaching of PMU staff.

However the Training & Communication Unit has included in its manual a comprehensive
training and visibility plan to be implemented during the remaining project period. Also the
M&E Unit has detailed its procedures to monitor and evaluate sub-project implementation
with the designed log frame as basis. The Finance Unit has prepared three manuals, one for
the PMU, one for Satker and one for the SIEs (this one still in draft form at the time of
writing). The Environment & Ethics Unit substantiated in detail to the WB and GoI
requirements regarding possible environmental and social events and impacts as a result of
sub-project implementation. The preparation and implementation of these plans by the PMU
will be a main effort of PMC to build capacity within Bappeda in respect of implementation
of future development projects similar to the EDFF.

EDFF Co-ordination Meetings, Workshops and launching of EDFF

Coordination meetings

During the inception period three EDFF Co-ordination meetings between WB, KPDT, Satker,
PMU and PMC were held, at Bappeda Aceh and in Jakarta. During these meetings, main

                                                                                             27
topics discussed concerned the role and responsibility of the various entities involved in
EDFF, the mobilisation and possible replacements of PMC consultants, the hiring of the
academician to be a member of the SIE Selection Committee, DIPA related issues, SIE
registration, the operational manual, registration/working permits of SIEs, MoUs between
SIEs and KPDT, financials manuals, disbursement flows, socialisation and communication of
EDFF, project management and ways of coordination among partners.

National Workshops by KPDT

The KPDT organized two Workshops in Jakarta. The first Workshop conducted on the 16th
of November 2009 was to introduce EDFF as a model for economic development at a
national level. Invitees were representatives of Bappenas, the National Audit Office, a
number of relevant Technical Ministries (Fisheries, Agriculture), WB officials, KPDT
officials and members of the EDFF KPDT Secretariat, Bappeda/Satker, PMU and PMC.
The Workshop was opened by the newly appointed Minister of KPDT, H.E. Ir. Helmy Faisal
Zaini. Chairman of the Workshop was Drs. Ari Noorwidyanto, Assistant Minister for
Economic Development and Private Sector Support. During the Workshop there were a
number of presentations to inform participants about the background, objectives and activities
already undertaken under EDFF. The PMC DTL presented the SIE Selection Manual. During
the Workshop the participants were given ample time to raise questions and provide
comments. Major issues raised during the workshop concerned the development objectives of
EDFF, the selection of SIEs, sustainability of the sub-projects and co-ordination between the
parties directly involved in EDFF. The last issue was raised by Mr. Enrique Blanco Armas,
Senior Economist and EDFF Task Team Leader at WB Headquarters in Jakarta.

The second Workshop conducted on the 10th of December 2009 concerned the overall
financial management of EDFF and the various parties involved. Invitees were
representatives of the Department of Finance, the National Audit Office, WB officials, KPDT
officials and members of the EDFF KPDT Secretariat, Bappeda/Satker, PMU and PMC.

Launching of EDFF

Following the successful EDFF project Introduction Workshop in Jakarta the KPDT Minister,
H.E. Ir. Helmy Faisal Zaini accompanied with a large delegation of EDFF Officials visited
Aceh on the 8th of December for the Official Launching of the EDFF Project. During the
visit the Minister highlighted the importance of EDFF for Aceh and for Indonesia as a model
for possible replication. He also handed over the EDFF Manual for the Selection of SIEs to a
Representative of the Office of the Governor.




                                                                                           28
PART III: FINANCIAL MANAGEMENT PROGRESS
    8. Activities and performance in the Inception Phase
The mobilisation of Financial Management team members was:

•      March 2009: full-time Bappeda Counterpart for financial management joined the
       PMU
•      October2009: full-time National Financial Management Specialist joined the KPDT
       Secretariat
•      November 2009: Intermittent Expatriate Financial Management Specialist joined the
       PMU
•      The full-time National Financial Management Specialist at the PMU was not
       available for mobilization in 2009 but joined on February 1 2010.

The main achievement during the Inception Period was the completion of two Financial
Management Manuals (FMM), detailing policies and procedures to be followed by the PMU
and the SIEs; the latter is awaiting endorsement. An additional FMM was also produced for
Satker

The EDFF inclusion in the DIPA (budget) for 2010 was submitted in December 2009,
totalling RP 166 billion ($ 16.6 million) of which Rp 154 billion is for the sub-project
implementing agencies (SIEs).

A preliminary review of the SIEs budgets (submitted with the sub-project proposals) was
commenced. The range of different formats and contents meant that cross-budget
comparisons were not possible, therefore a draft standardised budget format was developed.

Analysis of the component costs in the budgets revealed a disparity both in terms of line
items and unit values so a draft set of policies for SIE budgets was drawn up.

The WB provided the Financial Management team with a suite of documents to perform the
Financial Management Assessment (FMA); a risk analysis required to ensure that each SIE
has adequate financial controls. These documents were studied and some refinements to the
FMA questionnaire proposed to streamline the process. In March 2009 the PMU/ PMC
Financial Management Unit started the process of a financial management assessment of each
SIE that passed the First NOL of the World Bank. The assessment is undertaken in
consultation with Taskforce Managers and the Financial Management Analyst of the World
Bank.

Inconsistencies were identified in the project background documents concerning the
disbursement mechanism for SIEs. These were discussed with the WB and a more practical
disbursement process agreed. After signing the SGA the SIE will receive the first tranche of
funding, which will be for 4 months of activities based on a six month cash flow.

It was noted that the ceiling on the Designated Account (DA) was $5 million which would
not be sufficient to release adequate funds to the SIEs. A broad brush calculation projected an
initial release to the SIEs totalling ±$14 million. This figure is only for Component 1 and the
DA must also cover Component 2 costs. This shortfall was notified to the WB and steps have
been taken to rectify it timely. At the time of writing this report Satker has formally requested

                                                                                              29
KPDT to facilitate with the Ministry of Finance the required increase in the DA account.
PMC at KPDT will assist with this effort.

Training on financial management was provided by the WB to selected Financial
Management staff in December.

Constraints encountered by the Finance Unit

The delayed mobilisation of the Financial Management team was the major constraint to
completing the various tasks during the inception phase. By the writing of this report the
PMU EDFF Financial Management Team is complete.

Delays were experienced in obtaining the financial data required for the Interim Financial
Reports (IFR) from Satker and KPDT. By the end of March data became available. In table 1
in Annex 4 expenses incurred based on the Contract for Consultant‘s Services are reflected.
The overall financial achievements as per the Interim Financial Report (IFR) are also
provided in Annex 4.




                                                                                         30
PART IV: MAJOR ACTIVITIES AHEAD20

       9. Finance Unit
Inception Report - Finance Unit


Introduction, background and overall approach

The primary role of the Finance Unit is to facilitate sub-project implementation through a
smooth and uninterrupted release of funds to the SIEs and timely and accurate financial
reporting to stakeholders.

A secondary but equally important objective of the Finance Unit is to build capacity in
government counterpart staff.

The SIEs will use their own financial systems and be responsible for expenditures. The
Finance Unit will receive periodic expenditure reports which it will summarise and forward
to the World Bank. Although the responsibility for verification of expenditures rests with
SATKER the Finance Unit will support it with its own review.


Implementation strategy

The Finance Unit will:

       1. formalise the financial policies and procedures through production of a PMU
          Financial Management Manual, an SIE Financial Management Manual and a
          SATKER Financial Management Manual
       2. perform a Financial Management Assessment to gauge the integrity of each SIE‘s
          financial systems
       3. screen each SIE budget for compliance with Government of Indonesia and Work
          Bank requirements
       4. develop linkages with Monitoring and Evaluation to ensure that physical progress is
          in line with expenditure
       5. implement appropriate accounting software and appropriate supporting procedures to
          produce the required reports and facilitate external review and audit

Summary of expected results and activities (table)

The expected results of the Finance Unit will be accurate and timely reports to stakeholders,
audit reports without findings and a smooth and uninterrupted release of funds to the SIEs.




20   Details in WP and Budget PMU 2010-2012 to follow


                                                                                          31
Report           Frequency       Prepared by               Period
DA          fund Monthly         PMU                       End of each month
utilization  and
SOE
IFR              Quarterly       PMU                       End of each quarter
Financial        Annually        SATKER                    31 December 2010
statements                                                 31 December 2011
                                                           30 June 2012
Internal    audit Annually       KPDT         Inspectorate 31 December 2010
reports                          General       /     Aceh 31 December 2011
                                 Inspectorate              31 March 2012 (SIEs)
                                                           30 June 2012 (PMU)
SIE        Audit Annually        External auditor          31 December 2010
reports
                                                           31 December 2011
                                                           31 March 2012
PMU        Audit Annually        External auditor          31 December 2010
reports                                                    31 December 2011
                                                           30 June 2012
EDFF       Audit                 BPKP                      31 December 2010
reports                                                    31 December 2011
                                                           30 June 2012


Monitoring and Evaluation of activities


The Finance Unit will receive periodic expenditure reports from the SIEs which it will
review, inter alia, to ensure compliance with the budget and adequate supporting
documentation. This review will be supported by periodic visits to the SIE offices to review
operations and ensure compliance with the SIE Financial Management Manual.




                                                                                         32
     10. Procurement Unit

Introduction and background:

The ―Grant Agreement‖ stipulated that the procurement of ―All Goods, Works and Services‖
required for the ‗EDFF‘ project financed out of the ―Grant‖ should be procured in accordance
with the requirements set forth or referred in ―Section III Procurement ― of the Grant
Agreement:

A.    General
      1. Procurement and Consultant Guidelines. All goods, works and services required
         for the Project and to be financed out of the proceeds of the Grant shall be procured
         in accordance with the requirements set forth or referred to in:

         (a). Section I of the ―Guidelines: Procurement under IBRD Loans and IDA
              Credits‖ published by the World Bank in May 2004 and revised in October
              2006 (―Procurement Guidelines‖) in the case of goods and works, and Section
              I and IV of the ―Guidelines‖: Selection and Employment of Consultants by
              World Bank Borrowers‖ published by the World Bank in May 2004 and
              revised in October 2006 (―Consultant Guidelines‖) in the case of consultant‘s
              services; and

         (b). the provisions of this Section III, as the same shall be elaborated in the
              Procurement Plan prepared and updated from time to time by the Recipient for
              the Project in accordance with paragraph 1.16 of the Procurement Guidelines
              and paragraph 1.24 of the Consultant Guidelines.


      2. Definitions. The capitalized terms used below in this Section to describe particular
         procurement methods or methods of review by the World Bank of particular
         contracts, refer to corresponding method described in the Procurement Guidelines,
         or Consultant Guidelines, as the case may be.


B.    Particular Methods of Procurement of Goods and Works:

      1. International Competitive Bidding. Excepts as otherwise provided in paragraph 2
         below, goods and works shall be procured under contracts awarded on the basis of
         International Competitive Bidding.

      2. Other Methods of Procurement of Goods and Works. The following methods,
         other than International Competitive Bidding, may be used for procurement of
         goods and works for those contracts specified in the Procurement Plan: (a) National
         Competitive Bidding, subject to the following additional provisions set out in
         Annex 3 to this Schedule 2; and (b) Shopping.




                                                                                           33
C.   Particular Methods of Procurement of Consultant’s Services:

     1. Quality- and Cost-based Selection. Except as otherwise provided in paragraph 2
        below, consultant‘s services shall be procured under contracts awarded on the basis
        of Quality- and Cost-based Selection.

     2. Other Methods of Procurement of Consultant’s Services. The following
        methods, other than Quality- and Cost-based Selection, may be used for
        procurement of consultant‘s services for those assignments wich are specified in the
        Procurement Plan: (a) Quality-based Selection; (b) Least Cost Selection; (c)
        Selection Based on Consultant‘s Qualifications; (d) Single-source Selection; (e)
        Selection of Individual Consultants; and (f) Sole Source of Procedures for the
        Selection of Individual Consultants.


D.   Review by The World Bank of Procurement Decisions:

     1. The Procurement Plan shall set forth those contracts which shall be subject to the
        World Bank‘s Prior Review. All other contracts shall be subject to Post Review by
        the World Bank.

The ―Procurement Specialist‖ was appointed in the selected ―PMC‖ to oversight and ensure
the ―above procedures‖ were complied with.


Approach, strategy and activities:

Approach:

The PMC‘s ―Procurement Team‖ will assist the selected SIE‘s to conform to the
requirements of the ―Grant Agreement‖ as referenced above.

Strategy and Activities:

    Draft the ―Procurement Section‖ of the ―Operation Manual‖.

    Conduct workshop to explain to the Selected SIE‘s the requirements of the ―Procurement
      Procedures‖.

    Assist SIE‘s in preparation of ―Procurement Plan‖ to enable them to seek approval of the
      2nd NOL.

    Assist SIE‘s in preparation of Bidding Document for:

           -   ICB
           -   NCB
           -   Shopping
           -   Procurement of Consultants
           -

                                                                                          34
   Assist SIE‘s to seek the NOL for the requirements Bidding Document.

   Assist SIE‘s in the bidding process, assessment of bids and assist in awarding of
     contracts to successful bidders.

   Provide assistance wherever required in the implementation of projects and with the
     ―Prior‖ and ―Post‖ reviews as requirement by the ―World Bank‖.

   Monitor performance of the SIEs in terms of their procurement, do spot check audits/site
    inspections, some capacity building with SIEs and assist in solving any problems that
    may occur.

Expected Results:

The PMC ―Procurement Section‖ expect the SIE‘s to implement the ―Procurement Process‖
correctly to satisfy the requirements set out by the ―Grant Agreement, Sub-Grant Agreement
and the Operation Manual and the relevant WB Requirements.‖ Through the mentioned
strategies and activities it is expected that procurement by SIEs will be smooth. It is expected
though that additional staff resources maybe required because the inexperience of SIEs with
WB and GoI procurement procedures (see recommendations in Chapter 7).




                                                                                             35
   11. Safeguards and Ethics Unit
Introduction and background

Environmental and social safeguard procedures have to be followed to avoid and mitigate
possible negative social or environmental impacts of EDFF Subprojects and where possible to
enhance positive impacts. Environmental and social safeguards on the EDFF Project are guided
by both Government of Indonesia (GOI) and World Bank (WB) standards. Given the nature of
the activities supported by EDFF, negative environmental and social impacts are expected to be
minor and easily to be avoided or mitigated. Overall, the Project has been classified as a
―Category B‖ project and it has been agreed that GOI regulations for ―Category B‖ projects will
apply. Under these regulations, an Environmental Management and Monitoring Plan (EMP or
UKL-UPL) is required for each Subproject. It was verified that no additional WB safeguard
policies are triggered and also that none of the activities on the EDFF-exclusion list are
incorporated into the Subprojects.

A section on Environmental and Social Safeguards is presented in Section 5 of the Operations
Manual (OM), which identifies what needs to be done in terms of environmental and social
management on the EDFF. It presents formats and reports, including for the Environmental
Management Plan (UKL-UPL). The OM also includes a section on anti-corruption measures in
Annex 8: Better Governance Action Plan. This Annex presents guidelines for the Anti-Corruption
Action Plans (ACAPs) that have to be produced by the SIEs. The Indonesian Environmental
Impact Management Agency, BAPEDAL (Badan Pengendalian Dampak Lingkungan), is
responsible on behalf of the GOA for environmental management of the EDFF Project.
BAPEDAL is represented in the districts by the regional offices (BAPEDALDA). According to
the Law on Decentralisation, responsibility for environmental and social safeguards is also passed
on to the districts, where Tim Pemantau (Evaluation Teams) will have to be established for
environmental and social safeguarding and the provision of Izin Lingkungan (Environmental
Permits). A request has been submitted from PMU/PMC to SATKER for appointing two
BAPEDAL staff to cooperate with PMU/PMC. This will strengthen the ESST (Environmental
and Social Safeguards Team) and reduce the need for support staff, while at the same time
enhancing BAPEDAL‘s role on EDFF.

Approach and strategy

Section 5 of the OM describes the steps to be undertaken for the implementation of the
environmental and social safeguards programme. These steps are summarised below. Steps 1-3
have already been undertaken; the focus is therefore on steps 4-7.

Step 1: PAD stage. In the Project Appraisal Document (PAD), the EDFF Project has been
classified as a ―Category B‖ Project, requiring Environmental Assessment according to OP.4.01,
not triggering additional WB safeguard policies.

Step 2: Prebid stage. SIEs have been briefed by WB and BAPPEDA on the need to avoid
proposing ―Category A‖ Subprojects requiring full EIA or AMDAL and how to avoid triggering
additional WB safeguard policies.

Step 3: Proposal submittal and initial evaluation stage. Screening of Subproject proposals by
PMU and PMC confirmed the environmental ―Category B‖ status and confirmed that Subproject
elements are not on the EDFF exclusion list and not triggering additional WB safeguard policies.


                                                                                               36
Step 4: Detailed design stage. SIEs have to detail the designs of the Subprojects, including the
provision of Environmental Management and Monitoring Plans (UKLs/UPLs). The ESST will
assist this process by providing advice and formats.

Step 5: Evaluation of detailed design. The Environmental Management and Environmental
Monitoring Plans (UKLs/UPLs) for the Subprojects will be reviewed and approved. This will
include involvement of PMU/PMC, WB, BAPEDAL, BAPEDAL(DA) and district level Tim
Pemantau (Evaluation Teams).

Step 6: Implementation stage. During Subproject implementation, the UKL/UPL serves as the
basis for environmental management and monitoring. The main responsibility is with the SIEs,
but there is a supervising role for the ESST, WB, BAPEDAL and Tim Pemantau.

Step 7: Project completion stage. In the project closure report, the WB will require a final
evaluation of the EDFF, including an evaluation of environmental and social management.

Detailed Design
The Detailed Design Stage (Step 4) is the stage during which the detailed designs are prepared
and approved. The SIEs have been provided with guidelines (as per the OM) for environmental
and social safeguards, along with formats for Environmental Management and Monitoring Plans
(UKLs/UPLs). They have also been instructed on anti-corruption measures, on how to prepare
their Anti-corruption Action Plan (ACAP), and how to deal with complaints. It has to be clarified
what the role of the district level Tim Pemantau will be, ensuring that the SIEs are aware of the
need for close cooperation with these Tim Pemantau.

Evaluation of Detailed Design
Evaluation of the detailed designs (Step 5) will be carried out in the following order:
    Evaluation of draft UKLs/UPLs by ESST.
    Field visits to Subproject sites after completion of first draft UKL/UPL.
    Meetings with SIEs to discuss and upgrade the UKLs/UPLs.
    Sending of sample UKLs/UPLs (one for each sector) to the World Bank for approval.
    Submittal of UKLs/UPLs to BAPEDALDA (District Level) for approval.
    Submittal of UKLs/UPLs to Bupati‘s Office (District Office) for obtaining Izin
       Lingkungan

Implementation
Implementation of the Subprojects (Step 6) can commence once the overall designs have been
approved and the final NOL has been issued by the World Bank. This will require the completion
and approval of the UKL/UPL and Anti-corruption Action Plan, and the issuance of an
Environmental Permit (Izin Lingkungan) from the districts. The implementation stage will
include the following activities:
      Field visits to Subproject sites and subsequent reporting/follow-up.
      Regular meetings with SIEs.
      Input to quarterly and annual EDFF/PMC reports.
      Irregular reports for PMU and WB.
      Briefing meetings with District Evaluation Teams (Tim Pemantau).
      Training sessions with District Evaluation Teams (Tim Pemantau).
      Designing of awareness material for the organization process.
      Coordinating with BAPEDALDA/ Dinas related to the activities on EDFF.




                                                                                                   37
Completion

In the final stage of EDFF (Step 7) a project closure report must be prepared. This report shall
include a final evaluation of the organized environmental, social management, and anti-
corruption measures. It will involve evaluation meetings with the SIEs and BAPEDAL, and
where feasible, also with inputs from the Tim Pemantau.

Summary expected results, monitoring and evaluation

Effective implementation of the above strategy and activities is crucial to make sure that all SIE
activities will be conducted in line with the Environmental Management Plan (EMP, UKL-UPL)
attached to each approved SIE sub-project proposal. Hence an effective M&E system needs to be
in place.

PMC‘s main responsibility is to build up sufficient capacity within Bappeda to handle efficiently
and effectively projects like EDFF. This can only be achieved if Bappeda, in this case Bapedal,
will allocate sufficient and capable staff resources that can work hand in hand with PMC/PMU
consultants and staff to do the monitoring and evaluation of the sub-projects in respect of
safeguards and ethics. So far this has not been materialised and only consultants have been
involved . Hence increased effort will have to be made by all concerned to get the necessary staff
on board to ensure: 1) implementation of sub-projects will be according to an approved EMP, and
2) to build up the necessary capacity within Bapedal.

Status by the end of the inception period.

An initiative that is crucial for a successful operation of the Safeguards & Ethics Unit is the
appointment of two Bapedal staff. However, so far no staff has been appointed to EDFF. The
Head of Bappeda has submitted a letter to Bapedal on February 23, requesting 2 supporting staff
of Bapedal to be included in the EEST of EDFF. A meeting was organized with Bp Ir Hanzi
(Head of Amdal Section/Ka Bid Amdal) with the following outcome: the letter was received and
was handed over to deputy (Deputy Head of Amdal/Kasub Bid Amdal) Ibu Rosmayani. Bp Hanzi
gave a note to SatKer and mentioned 2 names and positions. The status was checked on March 10
by Bp Farid: he advised that the matter will be checked with Satker and that, when there is
progress, the ESST will be informed. By this writing no confirmation has been received by PMC.

During the Coordination Meeting on March 19, Bp Ir Hanzi suggested that the SIEs could submit
to Bapedal a list of their (finally defined) project activities, that could then be used for a final
check whether these project activities are classified as ―Category B‖ projects (requiring an
EMP/UKL-UPL), or as ―Category C‖ projects. In the latter case a SOP/SPPL would be sufficient
and no further activities in the field on social and environmental safeguards would be required.
The SIEs have prepared and submitted to the ESST their final lists of project activities. After a
quick review by the EEST, the lists have been handed over to Bapedal. The outcome is changing
the work in the environmental and social field considerably:
Four SIEs will be exempted for Environmental Management Plans (EMPs/UKL-UPLs). They
will have to sign a Statement of Environmental Commitment/SPPL with Bapedalda on District
level, confirming that their project activities will not have negative impacts on the environment,
that they will monitor their activities, and that in case there are negative impacts they will act in a
responsible manner. Two SIEs have to prepare EMPs/UKL-UPLs for some project activities.
Islamic Relief has to prepare EMPs/UKL-UPLs for their proposed fish processing plant and jetty
and Action Aid has to prepare an EMP/UKL-UPL for their proposed cacao butter plant. SIE Mae
Fah Luang Fou (MFLF) should negotiate directly with Bapedalda on District level to find out
whether their duck-project needs an EMP/UKL-UPL or not.


                                                                                                    38
        12. Communication & Training Unit21
Introduction and background

Introduction and Background
Training/capacity building is one of the major tasks to be conducted in EDFF under
Component II. It is relevant for that purpose that the role and interaction of the stakeholding
parties is clear. What are their roles, their limitations and what training methodologies should
be apllied?
Training/capacity building is only one side of the coin, the other side is the need to raise
awareness among the trainees about their role –and the role of the institutions they are
working in. They also should be aware of the usefulness and sense of manuals and materials
they are learning to understand. Once trainees know what they are doing and what they are
doing it for, their willingness to learn is much bigger then when training is just an obligatory
exercise.
Strengthening of the local capacities could be a very valuable additional output. By
incorporating the institutions right from the start in the different operational mechanisms and
by activating a transparent and frequent dialogue with them, the PMU might be able to turn
the normal project routine into the daily routine of these stakeholders. So PMU would not
only link with the local authorities as to check whether proposed sub projects are matching,
or in line with existing development plans, but also by trying to tie in some of the local
authorities in its capacity building exercises.

Overall Approach
Transferring know-how can take place in a variety of ways. The workshop and on-the-job
trainings are effective ways for building up, or strengthening already existing capacities and
skills. Although several training and workshop activities already have taken place as part of
the reconstruction process of Aceh, it is noted that apart from the many technical trainings,
general courses mostly were geared towards traditional tools such as ZOPP, log-frame, the
PCM (Project Cycle Management) and SWOTs.
Workshops are occasions when people with a problem in common come together to pool
experience and find answers. Successful workshops have an end product that has been shaped
by the participants during their time together. More personalized and flexible capacity
building tools are more appropriate in cases where a basic knowledge on key methodologies
like log-frames is available. A strong emphasis on on-the-job training, coaching and
mentoring will be thus beneficial.
The emphasis in on-the-job training is as follows:
     The tasks and functions of the trainee;
     The Expert to assess his/her output;
     Expert to hold discussions with trainee on any shortcomings;
     Expert to provide guidelines for improvement;
     Trainee improves his/her output following discussions and guidelines.

The implementation of the training activities particularly training conducted in workshop
type of gatherings, will require sufficient EDFF funds to be provided by BAPPEDA/ PMU,
PMC, KPDT, SIE or from other sources.

21   Annex 6: Detailed training and visibility plans based on the PMC conducted training needs assessment of PMU and KPDT
staff


                                                                                                                        39
40
Clarification and details of main activities

A. At PMU /Bappeda/KPDT level:

1. Training for PMU Staff/Bappeda.
   PMU staff will join formal trainings, workshops or informal trainings which will be
   conducted by related institution (LKPP Bappenas, MOF, etc) base on their task
   (procurement, financial, communication, and M & E).
  Status:
  a.    Procurement PMU Staff join on Administration Technical and Certification Expert for
       Procurement of Good and Services Government (formal training), date 7 – 9 December
       2009, in Jakarta. The training conducted by Lembaga Pengembangan & Konsultasi
       Nasional (LPKN) under Lembaga Kebijakan Pengadaan Barang/ Jasa Pemerintah
       (LKPP) Bappenas. She is pass for Certificate L 4 (is mean she available in
       procurement division for 4 year, if will be extension not necessary follow the training
       (evaluation test) again.

  b. Financial PMU Staff join on Workshop Nasional Tata Administrasi dan Keuangan
     Pinjaman dan Hibah Luar Negeri, date 9 – 11 December 2009. The training conduct by
     Ministry for Disadvantaged Areas (KPDT) in Jakarta as Implementing Agency for
     Activities in Aceh – Economic Development Financing Facility (EDFF).

2. On Job Training (OJT) for PMU staff.
   During implementation, on job training (OJT) for PMU staff will be conduct by
   Consultant/Expert each unit from PMC (procurement, financial, communication, and M &
   E).

3. Workshop for Preparation Revised Proposal.
   PMC/PMU invited Resource Persons from BAPEDAL Aceh for socialization about
   required UPL/UKL (environmental) documents of SIE sub-projects. The PMC
   Consultants/Experts and PMU staff will coach and guide the SIEs with the preparation of
   procurement plans, financial management assessment and other documents to be attached
   in their proposal for proposed 2nd NOL.

4. Workshop Socialization EDFF.
   PMU/PMC will continue to socialize the EDFF Project and Subproject Implementation
   Entities (SIEs) to the Head of District (Bupati) and staff, after the second NOL from
   World Bank and signed Sub Grant Agreement (SGA).

5. Workshop for Technical Implementation.
   Consultants/Experts and PMU staff of each unit will socialize with the SIEs procurement,
   financial management, M & E, Safeguard /ethic & environment and communication
   concerns based on the Operation Manual that covers both WB & GoI requirements in
   respect of sub-project implementation.




                                                                                           41
6. TOT Operating & Maintenance Website EDFF.
   The Service Provider of the EDFF website will train the PMU staff or Bappeda staff to
   become Trainer to other relevant EDFF parties for operating and maintenance of the
   website.

7. Study tours to learn from Similar Projects like EDFF elsewhere.
   The participants of study tours will be from KPDT Jakarta, Satker Bappeda Aceh, and
   PMU.

8. PMU Units with their PMC consultants and experts will brief/train KPDT staff on the
   content of the OM

9. Other EDFF related topics not yet determined.
   May be there are some training that a conduct during project period.


B. At District level:

-      Socialization EDFF, SIE sub-project per District.
    PMU will be socialize the EDFF project and the concerned SIE will present its sub-project
    to the Head of the District (Bupati), his/her staff and other stakeholder at the sub-project
    location.
    Status: Socialization in the form of Synchronization of the sub-projects with the districts
            was carried out on 15 February until 12 March 2010 in 13 districts covered sofar
            i.e. in Pidie, Pidie Jaya, Bireun, Bener Meriah, Aceh Utara, Aceh Timur, Aceh
            Tamiang, Aceh Besar, Aceh Singkil, Aceh Barat Daya, Aceh Tenggara, Nagan
            Raya, Simeuleu.

-      Training for Operating and Maintenance Website EDFF.
    PMU or Bappeda Staff after having had their TOT training will train the District staff and
    officers from the SIEs on the tasks in respect of operating and maintenance of the EDFF
    website.

-     Workshop Evaluation for Implementation Project.
    PMU/PMC (may be with World Bank representatives) will review sub-project
    implementation at District level with stakeholders of the local government and with the
    SIE on a regular basis




                                                                                             42
COMMUNICATION

Introduction and background

A well- defined unambiguous external communication strategy is a great asset for each
program or project that tries to generate development in a certain region. Proper
communication helps to mobilize people for development action. It assists in solving
problems and misconceptions that may arise during the implementation of the project while
at the same time providing solutions to existing problems.

A Communication and Visibility Plan is an important component of any project, program or
activity. It provides a framework for ensuring that information is shared with appropriate
audience on a timely basis and in the most effective way. Without a Communication and
Visibility Plan, there is an increased risk that one will react to rather than lead its own
external communication process.


Approach and strategies

EDFF needs to feed all stakeholders and concerned target groups with correct and valuable
information on a frequent and timely basis. EDFF is a large program which may have
important influence on people‘s everyday lives.

EDFF needs to inform the general public, the stakeholders participating in EDFF, target
group and end beneficiaries about its objectives, the methods apllied during the various stages
of implementation and overall progress.

Concerning progress presented the information is to be transparent and objective. Next to
successes in projects implemented, less successfull cases are also to be addressed.
Development after all also includes lessons learned from made failures. EDFF is strong
enough to recognize its less successful features and is very well able to communicate this
message. This will increase the trust and confidence that people have in the program.

A sound communication strategy also includes the need for ―bottom up‖ communication as
communication and information about EDFF will be shared by many people.

For this reason it is important to not only to send information ―down‖ to the general public,
but at the same time to listen to what people have to say about EDFF. Stakelholders, target
groups and beneficiaries are to be provided with opportunities to participate in the
communication process. If they share their ideas and image about EDFF, possible
communication and information gaps can be addressed and clarified. In this way the general
public learns about EDFF and while EDFF learns about the information needs of the people.
Through this participatory approach, communication will be more localised and therefore
more effective.

The challenge is not just how to improve information transfer to beneficiaries, but also how
to do this in a way that promotes dialogue and information exchange. The challenge is to
stimulate endogenous information sharing, knowledge and dialogue at the village level. Four


                                                                                            43
channels for communications at the village level include key information holders, community
meeting, religious and cultural gathering, and public information boards or notice boards.

So, in addition to the dissemination of information through mass media, communication
coordination as possible must be done with SIE, because they will do the dissemination of
information directly with the beneficiaries.

Moreover, mass media channels, including EDFF website, newspapers, radio, television and
even telephones, can be immensely powerful means for disseminating information quickly,
effectively and on a grand scale.


Visibility

Next to communication the visibility of EDFF is an other tool to promote EDFF. EDFF needs
to be seen, heard of and known by representatives of donor community, the central,
provincial and local government, but equally important by the general public.
There are two ways through which the visibility is enhanced. It is enhanced by:

               EDFF‘s own communication activities, and,
               Visibility activities by Project Holders of projects funded by EDFF.

In this respect there is a need for a participatory communication strategy. As the Project
Holders are part of the visibility, they should have access to correct and valuable information
on EDFF. Through a bottom-up communication process, EDFF will be better informed about
the information needs of the project holders.

Some of the communication strategy that will do is build a website of EDFF, dissemination
of information through various mass media at the local level, national and international,
design newspaper advertising for public display, work with local radio station, advertising or
programming for television is unlikely to reach a wide audience. Where possible, incorporate
incentives for interaction into mass media outreach and media gathering or media visit. Also,
regarding dissemination of information and complain handling, develop the potential of
outreach via mobile phone technology.

Detailed Description of Planned Activities

Tools             Type of Info        Target             Timing
Responsibility

Reject Letter     Explanation       SIEs that            March 2010           PMU/ TA C &
by email and      letter that the   proposal was                              V Expert
letter            SIE did not       rejected
                  pass in getting
                  the EDFF
                  project
Website           EDFF basic        Gov and donor        April 2010           PMU/ TA C &
                  information ,     officials, general                        V Expert
                  news, progress,   public, project      Up date content by

                                                                                            44
              article, photos      holders, target      weekly
                                   groups and end
                                   beneficiaries
Newsletter    News item,           Selected                -     June 2010     PMU/ C & V
              human interest       distribution                                Expert/ Project
              stories, contact                             -     monthly       Holders
              information
              and progress
              report .
              Newsletter
              could aslo be
              downloaded
              from Website
Brochures     basic                Gov and donor        April 2010             PMU/ TA C&V.
              information          officials, general
              about EDFF           public, project
              Project.             holders, target
                                   groups and end
                                   beneficiaries
Information   Project Board-       Gov and donor        Since                  SIEs
Board         information          officials, general   implementation of
              about volume         public, project      the project
              project, budget,     holders, target
              schedule, etc. Its   groups and end
              should be
                                   beneficiaries
              installed by SIEs
              in each site of
              the project
Information   Community            Gov and donor        Since                  SIEs
Board –       Board –              officials, general   implementation of
Community     information          public, project      the project
Board         about progress       holders, target
              project and and      groups and end
              other                beneficiaries
              information
              related to the
              EDFF,
              beneficiaries
              complain, etc.
              The boards will
              be located in
              the most
              strategic area
Print Ads     basic                Gov and donor        Special event or       PMU/ TA C&V.
              information or       officials, general   special issue in the
              a specific           public, project      project before the
              subject              holders, target      TV/radio show
                                   groups and end       will be aired
                                   beneficiaries



                                                                                             45
TV/Radio talk      specific           Gov and donor        Special event or     PMU/ TA C&V.
show               subject/           officials, general   special issue in
                   specific issue     public, project      the project
                   in the project     holders, target      (monthly)
                                      groups and end
                                      beneficiaries
Press Release      specific           Gov and donor        -Soon, post          PMU/ TA C&V.
                   subject/           officials, general   Second NOL
                   specific issue     public, project
                   in the project     holders, target      -Special event or
                                      groups and end       special issue in
                                      beneficiaries        the project –

                                                           -monthly
Media Visit        Specific issue     Gov and donor        Special issue or     PMU/ TA C&V.
                   for article or     officials, general   request
                   story about        public, project
                   success story      holders, target
                                      groups and end
                                      beneficiaries
                   Sharing EDFF       Member of target     During gathering     PMU Staff/ TA
Focussed visit     basic              groups               of the specific      is responsible for
                   information or                          target group         implementation
                   a specific subj.
Flags and          Flags and/or       Attendants of        Immediately          PMU/ TA C&V
banner             banner are         events and public                         Expert/ Project
                   suggested for      meetings                                 Holders
                   use as a           donor
                   backdrop           representatives,
                   during events      governorate,
                   and public         project holders
                   meetings
Launching of       A official         Gov and donor        Planned before or    KPDT/
EDFF and           launching          officials, general   during signing of    Overnor‘s Office
regular official   opening with       public, project      the contracts with   GoA, Bappeda/
events             KPDT, GoA,         holders, target      SIEs and regular     PMU/ TA
                   WB,                groups and end       progress
                   BAPPENAS           beneficiaries        presentations
                   and other
                   officials with
                   media
                   coverage
Documentary        Documentary        Gov and donor        Middle of 2011       PMU/ Ta C&V
film               film on EDFF       officials, general   For closing          expert with short
                   project            public, project      project – March      term input of
                   activities         holders, target      2012                 documentary
                                      groups and end                            filmmaker
                                      beneficiaries

                                                                                                46
Closing          Conference to     Donor               June 2012           PMU/ TA C&V
conference       be organised at   representatives,                        expert
                 the end of the    BAPPENAS,
                 EDFF project      KPDT, GoA and
                 period            Local
                                   Government
                                   Officials


Gender

The Unit will ensure that gender concerns are included in the design and monitoring of
subprojects. The inclusion of gender should translate into specific targets in the subproject
output where possible. EDFF will focus on equal opportunity to acces information. It will use
mainstream media and media alternative channels to forward its message and present
information for accountability and transparency to beneficiaries:

      Radio programming/ TV programming targeted at women should be broadcast in a
       midday timeslot. There are particular opportunities for reaching women through
       radio/TV, who make up the majority of the daytime audience.

      Reaching women means going to them. Mass media has less chance of reaching
       women as it does men. Women are less likely to read newspapers, and they have
       lower rates of radio and television consumption. Further, women‘s radio and
       television choices are likely to be influenced by their men. Communities reported that
       the best ways to reach women were via quoranic reading groups for women and other
       organized women‘s activities like health clinics. Women also participate in
       community religious and cultural events, probably more often than they attend formal
       meetings.

      Improving women‘s access to information and their participation takes time and effort
       and there are no easy solutions. Therefore the Project will encourage SIEs to consider
       organizing socialisation events to coincide with women‘s activities and men‘s
       activities, or working with their leaders to pass information through their networks,
       (Based on the result of research conducted by World Bank in Media Mapping,
       Understanding Communication Environments in Aceh)

Therefore in the case of EDFF outreach campaigns, the Project will deliberately work with
the SIEs to engage women in the EDFF project through these channels. The objective that
there will be a well balanced involvement of both women and men in respect to all aspects of
sub-project implementation

Activities and expected results

Experience so far with the SIE selection process has shown the need for capacity building,
communication and visibility activities. It has provided valuable inputs for encouraging the
PMU and the SIEs to have an effective training, communication and visibility plan in place
and implemented accordingly. Several gatherings with SIEs are foreseen in the PMU plan to
inform and consult with them on their individual training and communication plans for
beneficiaries and local governments taking into account the above described gender

                                                                                          47
strategies. The PMU Training & Communication Unit will work closely with the SIEs to
monitor the implementation of these plans. Bappeda is requested to strengthen its PMU Unit
further to work hand in hand with the PMC consultants so the expected activity results in
terms of capacity building, communication, transparency and gender will be ensured. More
details on how these concerns will be addressed will become available after SIEs have been
contracted. It is only then that PMC/PMU can assist the SIEs with planning to address and
monitor these concerns. These SIE plans will be submitted separately, by June 2010.




                                                                                       48
13. M&E Unit
Introduction, back ground and overall M&E approach

The bulk of the monitoring and evaluation tasks in EDFF are related to Component I of the
project. That is, M&E will assess the progress and performance achieved in by SIEs in
implementing the selected sub-projects. The second, albeit minor, part of the M&E system
concerns Component II, ie, the PMU and the consultants attached to it.

The monitoring, or data collection part, will be combined effort of the respective SIE and the
M&E unit of PMU/PMC. The evaluation of the collected data will be the sole responsibility
of the latter.

The M&E Manual, while still on the drawing board, will direct all involved parties in
carrying out this task, and clarify the importance of providing project management with the
proper information. After having established their starting position, and their respective goals,
a work plan (drawn up for each sub-project) outlines the steps to be taken to reach the goal.
M&E provides the tools to assess progress and performance. Deviations from the plan are
identified and where needed corrective action can be taken. M&E is thus a highly effective
management tool. The M&E manual will be completed as soon as the SIEs have been
contracted. Together with them the manual will be agreed upon and finalized.

The [to be designed] M&E system will be simple but informative, not time consuming to fill
and not difficult to read and understand. Every effort has been and will be taken to avoid that
monitoring turns into a dreaded burden the benefit of which remains in doubt. The system
will moreover be activity specific and purpose driven. For each SIE and its specific activity
(sub-project) an M&E data-template will be designed to ensure that the appropriate data—
and only that data—will be collected.

The data-templates will be discussed with the SIEs at the start of sub-project implementation
The drafts produced by PMU/PMC will then in consultation with the relevant SIE be
finalized. During programme execution the scope, range and level of data detail will,
however, be assessed regularly to ensure that required adaptations are seamlessly
incorporated into the M&E system.

Monitoring and evaluation of the activities of PMU/PMC is fairly simple. Physical progress
in terms of mobilization of the consultants according to an approved manning schedule
(Inception Report and Work Plan); reporting per due date; and execution of the training
programme designed for capacity building, is quite straightforward to monitor. Monitoring
the disbursement of the allocated funds is not difficult either; it just needs a dedicated staff
well versed in the directives, rules and regulations of World Bank and GOI accounting.




                                                                                              49
Strategies, expected results and activities

A schematic outline of the M&E system (for the implementation phase) is shown below

                    Draft M&E for IMPLEMENTATION PHASE

  Business Environment                    Private Sector Support              Public Infrastructure

                              Assessment of Sub-project Implementation
                                 Physical Progress and Performance
number of:                       per district / programme area                type of infrastructure
Regulations improved             Number of enterprises supported              Progress per relevant type
Regulations enacted              Improved access to                           Increase in ….. (benefits)
Procedures made operational        financial services
Registrations improved             markets and market & technical info
Licensing improved               Employment increased
Investment procedures
  improved/eased                 Communities involved
One-stop shop(s) created          farmers/farm groups
                                  fishermen/fishermen coops
                                 Farming – per crop:
                                  improved yields (kg/ha)
                                  production increase
                                  increased size (ha)
                                  production increase
                                 Animal husbandry – per genus
                                   increase (for fattening)
                                   increase (total herd/flock)
                                 Fisheries – marine, inland, pond/cage
                                   volume catch
                                   increase/improvement boats
                                   increase/improvement of jetties,
                                      harbours, auctions
                                   additional ponds/cages per type fish
                                 Agro-processing – per type
                                  Increase in manufacturing units (SME)

                               Financial Progress and Performance
                               Assessment of procurement procedures
                                   Assessment of disbursements
                        Assessment of Impact on Welfare and Wellbeing

little direct impact              Measurement of DIRECT impacts are           little direct impact
                                  likely to be restricted to the activities
                                                covered by
                                        Economic Development
                                                     and
                                         Private Sector Support




                                                                                                     50
        Annual Assessment of Progress and Performance of PMU/PMC

                        PHYSICAL PROGRESS AND PERFORMANCE of PMU/PMC
                   Mobilisation of consultants – as per Work Plan and Inception Report
                            Reports – per due date, approval by client & donor
                Training and Capacity Building – according to scheduled dates and periods

                               FINANCIAL PERFORMANCE of PMU/PMC
                 Monthly disbursement in relevant currencies and as a percentage of totals


For the purpose of assessing the medium and long-term benefits of the sub-projects a starting
point, or benchmark, will be needed. This point, also called baseline, will be established
through a survey at project start. The bulk of the relevant data will be collected by the SIEs,
while the data that transcend the sector boundaries will be the responsibility of PMU/PMC.
Examples of the latter are: demographic data per kecamatan and kabupaten, topographic
maps showing land use and vegetation cover, road networks, and other features typically
found on base maps.




                                                                                             51
                                     DATA for BASELINE SURVEY
                                                  Economic Development –
     Business Environment                                                                  Public Infrastructure
                                                   Private Sector Support

                                    DATA to be COLLECTED by SIE

Regulations (existing)22                 Agriculture – main crops in Aceh province,        Existing infrastructure
Procedures (existing)                    relevant district, and sub-project area:           (on map of suitable scale)
Bottlenecks                                area planted (average of past 5 years)
Time required for:                         production (average of past 5 years)            The section / part identified
 starting an enterprise                    total number of farmers                         as missing will then be
 licenses, renewals, etc                                                                   shown on this map with an
Key complaints by:                       Animal husbandry – in Aceh province,              annotation explaining its
 investors                               relevant district, and sub-project area           need.
 SME                                       cattle, goats, poultry
                                           numbers of past 5 years

                                         Fisheries – in district and sub-project area
                                         marine: total catch per species past 5 years
                                           harbours, jetties, auctions
                                           total boats by type & location
                                           fishing gear by type & location
                                         inland: catch per year / type
                                         ponds & cages: location (detail)
                                           types / species of fish bred
                                           production and yield/ha
                                         support services
                                           finance, extension,
                                           market & price information,

                                         Manufacturing
                                           SME of same industry group as the one
                                         proposed by the SIE, and location thereof


                                    DATA to be PROVIDED by PMU

                 PHYSICAL CONDITIONS of Kabupaten, kecamatan and villages involved in subproject
                                          road network and transport system
                    water resources, areas prone to flooding, areas with occasional water shortage
                            degraded environment: denuded slopes, erosion, water quality

              DEMOGRAPHIC CONDITIONS of Kabupaten, kecamatan and villages involved in subproject
            annual population growth rates provide insight into socio-economic attractiveness of area/region

             SOCIO-ECONOMIC CONDITIONS of Kabupaten, kecamatan and villages involved in subproject
                  employment per main sector / markets for main crops / support services available


It is envisaged that the Manual—instructions and templates—will be clarified and discussed
in depth with each SIE, and where necessary adapted. Because of the very limited period


22   The Economic Governance and Regulatory Environment survey conducted by the KPDT implemented SPADA project in all
districts of Aceh, will be consulted for the purpose


                                                                                                                    52
available for the implementation of the sub-projects, it is essential to keep the input
requirements of the M&E programme to a minimum.

However, at the time of writing the Inception Report the sub-proposals that are being
considered for implementation, that is, the ones for which a first NOL has been received from
the Bank, were still being revised and exact areas of operation and activities covered were
therefore not yet available.

Reporting

PMC will submit its reports in line with what is provided for in its TOR except in respect of
the Inception report for reasons explained earlier. This means that there will be monthly,
quarterly and a final completion report as well as other reports and documentation according
to need, both in English and in Bahasa Indonesia.




                                                                                            53
PART V: OVERALL OBSERVATIONS,
        CONCLUSIONS AND RECOMMENDATIONS
    14. On the selection process
   EDFF socialisation

In respect of component I, it has been observed that the socialisation conducted before the
deadline of the Call for proposals could have been more comprehensive and focussed.
During the assessment of the 121 Sub-project proposals that were received, it appeared that
many Acehnese NGOs experienced serious problems in clearly defining their particular area
of development intervention. Many such proposals had to be rejected as they were not
addressing the specific objectives of the EDFF, or the NGO did not understand how to follow
the criteria set out in the Call for Proposals and some areas specified in the PAD as priority
areas were not addressed.

Due to the requirement/set criteria that only good quality proposals would be considered to
increase likelihood of successful implementation, many local NGOs were automatically at a
disadvantage given their low capacity in this regard. This resulted in the selection of mainly
large international NGOs.

Improved socialisation and using criteria also appropriate for local NGOs, might have
contributed to a better balance between submissions from local, national and international
NGOs. Ultimately a relatively large number of international NGOs were selected and very
few local and national NGOs, although several international NGOs included local NGOs as
partners in their proposals. Nevertheless a more specific Call for Proposals format and
increased socialisation might have helped PMU to receive proposals more in line with the
EDFF project objectives and at the same time enabled more local NGOs to have had a chance
to participate in EDFF.

   Time allocated, training and EDFF’s sectors

The time from the launching of the Call for Proposals and the deadline for submission of the
sub-project proposals may also have been too short to allow potential SIEs, particularly the
local ones, to really understand the EDFF project objectives and collect all needed
information to come up with the required documentation. Allowing more time for focussed
socialisation highlighting options presented in the PAD and RPJMD, providing training in
sub-project concept/proposal writing and better explanation of the meaning of crucial issues
addressed in the project description format could have resulted in a more balanced sub-
project distribution across the three EDFF sectors and more involvement of local NGOs in
EDFF. At present it looks that all selected sub-projects will mainly go for private sector
support. Although some of these projects support elements of the two other sectors, EDFF
will not make major investments in public infrastructure and improvement of the business
environment. The PAD estimated that about a fourth of the Project would support these areas.

   Involvement of PMC in selection process

Another recommendation for future EDFF-style projects is that it is better for the selection of
the sub-projects/SIEs to be made by a group of consultants/experts who are not responsible

                                                                                            54
for Project implementation. When the PMC joined, the selection process, starting from
opening of the proposals to final selection, still had to be done and the PMC was heavily
involved therein and consequently valuable months were foregone due to this activity.
Another argument for having a separate group doing the selection process would mean that
the PMU & PMC will not be distracted by having to attend to NGOs and other concerned
parties seeking information and speculating on the on-going selection saving time and
energy. It has yet to be seen how and to what extent the EDFF adopted process will affect
successful sub-project implementation by PMU/PMC/SIE in the field.

To facilitate capacity building with GoA staff and better assessment of the sub-project
proposals, it would have been much better if expert from the GoA/Dinas would have
counterparted with the International Technical Consultants of the PMC during the phase II &
III selection process.

   Limited assessment by PMC/PMU

A further observation concerns restrictions placed on the PMU/PMC during the selection
process. These prevented the consultants who were hired to assess the technical feasibility of
the proposed sub-projects from checking with proponents and other resource entities the
feasibility of the sub-project and potential SIEs in the field. Hence the results of the selection
were derived primarily from analyzing the proposals submitted. Basically a desk study was
conducted. Thus it was only limited possible to confirm if proposals were in line with the
various district development priorities, if assumptions in the proposals were correct, if district
technical departments were properly consulted or to have discussions with parties competent
in respect of the sub-projects proposed, etc. In future this process surely needs to be revised
to make sure that proposals can be properly verified, assessed and the best selection made
even before a first NOL is given. For EDFF this verification could therefore only take place
between the first NOL and second NOL. The result is that tentatively approved sub-project
proposals had to be subjected to material revisions in terms of both content and budget. By
the time of writing this report, the 2nd NOL is still waiting.

   Sub-project Selection Comittee

The Sub-project Selection Comittee required almost seven weeks to arrive at their
conclusions. The time used is considerable and is due to the fact that one member of the
team was replaced in January and other members only contributing on a part-time basis. In
fact most of the selection activities have been undertaken by the Academician Member of the
Committee in consultation with individual members of the Committee who later indicated
their agreement by signing the selection report.

   Time allocation for implementation of sub-projects

During the Call for Proposals potential SIEs were invited to prepare sub-project proposals for
a duration of 30 months. Assuming that the Sub-grant Agreements will be signed in
April/May 2010, this now means that only 22 to 23 months are available and in fact
effectively only 18-20 months as on average four months may be required for start-up and
procurement. In this respect it is questionable if the awarded SIEs will be able to implement
their sub-projects before the end of March 2012 at a level that ensures sustainability of the
activities that need to be sustained. As the deadline for the closing of EDFF cannot be
extended beyond June 2012 alternative solutions need to be identified including a possible

                                                                                               55
second follow-up phase of EDFF to be funded from remaining MDF or other sources. Efforts
are made to get an extension with one year. The project has facilitated that letters from the
KPDT and GoA have been sent to the WB with copies to the MDF, in which an extension of
one year is requested and justification is provided. Without an extension there is doubt that
the EDFF objectives can be achieved as specified in the PAD and other official documents
and initial expectations regarding outputs and outcome will need to be tuned down.

   15. On Financial management
The project design is such that much of the finance work is front-loaded; e.g. approved
financial management manuals, financial management assessment, budget reviews and
procedures to be in place for the various stages leading to the signing of the Sub-Grant
Agreement Additionally, most tasks originally allocated to the KPDT Secretariat, such as the
compilation of the IFR, have now been reallocated to PMU. With limited PMU financial staff
assigned to the project there is a considerable if not an access workload for the PMC.
Additional human resources for the Finance Unit are required. Besides more PMU finance
staff it could also be considered to post the KPDT Finance Consultant at PMU at regular
intervals.

Additionally, the original project design called for only one financial management manual,
but it soon became clear that there was a need for separate manuals for PMU and the SIEs.

The Financial Management Assessment of SIEs is one of the major implementation tasks
assigned by the WB to the PMU/PMC. It is supposed to be completed before the 2 nd NOL for
the sub-project can be provided. However most SIEs have not yet set up their offices nor
recruited key staff and will not do so before they have got the contract with Satker. Hence it
is quite impossible to complete the assessment before the 2nd NOL is given. It is therefore
recommended to split the Financial Management Assessment into two phases. The first
phase, an assessment of the questionnaire and relevant supporting documents, to be
conducted prior to the 2nd NOL; and the second, the on-site verification of systems,
procedures and staff, to be conducted once the SIE‘s sub-project office is fully operational.
For SIEs that have not yet set up their offices nor recruited their key staff, alternative ways
will be explored to get the assessment done in a way that will provide sufficient information
regarding the financial management capacity of the SIEs concerned to decide on whether to
proceed or not.

Cash flow projections revealed that the ceiling for the Special Account of $5 million is far too
low. KPDT and the World Bank have requested by PMU to increase this to $18 million
(based on advances to the SIEs sufficient to fund six months of activities based on their cash
flows). Subsequently the basis of the advance was reduced from six months of activities to
four months of activities, which will reduce the aggregate requirement proportionately. It is
hence recommended that the Special Account ceiling should be increased to be able to fund
the aggregate advances of the SIEs – plus other costs to be funded from it – to reflect the
revised basis of determining advances.

Whilst PMU is to follow Government of Indonesia systems, enhanced where appropriate by
World Bank procedures, the SIEs can follow their own systems which may create some
implementation difficulties. Potential conflicts need clarification- e.g. SATKER requires the
original supporting documentation to endorse the IFR but the SIE should hold them so they
are available for external auditors and other monitoring missions. The WB will require a copy

                                                                                             56
of the BI statements as supporting document to the IFR submission. Earlier it was decided
that SIEs would not require furnishing a bank guarantee letter to secure the first advance but
GoI regulations seem to require one. This has to be investigated further.
In respect of keeping original supporting documents, and since SIEs will be audited by Public
Accounting Firms, they will need to keep the originals with them, while for KPDT they will
be provided access to these documentation when they need them.

The Interim Financial Report (IFR) and monthly financial reports summarise financial
activities at an aggregate level. This could potentially impact on those SIEs that report in a
correct and timely manner if even one SIE fails to do so, as reporting is the basis for the
request and release of subsequent advances.

The lack of guidelines for the $100,000 reimbursable costs relating to project redesign
resulted in a disproportionate amount of time being spent on answering ad hoc queries
concerning what would be eligible and what would not. It also potentially exposes the
reimbursement to the risk of retrospective rejection by the auditors

        16. On SIEs and their sub-project proposals
As mentioned under physical progress above after the 1st NOL to eight selected sub-projects/SIEs
was given on Wednesday the 10th of February 201023, a workshop with all SIEs was held and
negotiations and consultations between SIEs and local governments concerned were conducted in
all 13 covered districts. This exercise took the rest of the month of February as well as the first
two weeks of March 2010. During that period though consultants and PMU staff worked hand in
hand with SIE representatives on proposal revisions and preparation of various required
documentation. A couple of coordination meetings were also conducted with the Kepala Bappeda
and Bapadal.

During these activities various issues cropped up and these are summarised below including how
PMC/PMU envisages addressing these.

Sub-project proposals, shortened implementation period, request for an extension

The Selection Committee had advised that SIEs should scale down on districts covered and avoid
overlapping. The time available for implementation was also considerably reduced compared to
the planning made when the SIEs submitted their proposals. These two factors should result
according to the Committee into a substantial reduction in budgets of the tentatively approved 8
sub-projects.

Furthermore from the information gathered during the workshops, meetings, consultations and
field visits, a number of revisions that had to be made also affected budgets.

What also emerged was that the 8 SIEs had no or very little experience with GoI and WB
regulations in respect of procurement, safeguards and ethics and financial documentation
requirements. All these factors require much more time than original foreseen by PMC/PMU.

As said it is now estimated that SIEs will only be able to start field operation from May 2010
onwards; hence the request for a one year extension. By this time of writing however there is no
confirmation of an extension, leaving no other way for SIEs than further reduce implementation


23   Annex 1: list of eight sub-projects and implementing SIEs and districts covered


                                                                                                57
time and revise their plans accordingly. Sadly one SIE decided to pull out a.o. because of the
shortened time frame and other reasons.

Other SIEs though have finished their revisions but are still struggling to get the supporting
documents in order. Not before all that is complete can PMU submit the revised proposals to the
WB for 2nd NOL24.

The withdrawal of one SIE (CHF) and revisions made by the other 7 SIEs have resulted in
savings of around US$ 10 million which means that some more SIEs could be included under
EDFF25. It has to be said though that without an extension it seems not really feasible for these
SIEs to start unless major revisions of activities are done. In the meantime the additional ones
earlier submitted to the Selection Committee have been resubmitted for prioritisation. As soon as
the Selection Committee has determined the priority projects, PMU will invite concerned SIEs
that can be included based on budget availability, to consult about and negotiate on their sub-
project for inclusion.

Until the writing of this report PMU/PMC is continuously working hand in hand with the 7 SIEs
that got their 1st NOL, to complete the required documentation. It appears that, the EDFF being
an innovative approach, the screening of the revised sub-project proposals by PMU-PMC shows
that this is very time consuming. PMC/PMU‘s capacity to do this is limited. Whilst the primary
role of the PMC is to develop capacity in the PMU, this process is in its very early stages. The
inception phase of EDFF requires levels of expertise not yet developed in the PMU and therefore
the PMC has had to take a significantly more participative role throughout the process of guiding
the SIEs from the first NOL to the second NOL, and ultimately to the signing of the SGA. The
implication is that it is not possible to check in detail the revised SIEs proposals and budgets as
PMC/PMU would like to unless more time would be available. If more time would be taken for
scrutinising sub-project proposals, implementation time would be further reduced, which could
endanger achieving the objectives of the sub-projects even more.
On the other hand as the SIEs are all international NGOs with a solid track record of project
implementation and have already undergone a rigorous selection process it is reasonable to have
confidence they will implement the sub-projects to a professional standard. The level of oversight
possible by the PMU is presently constrained by its resources. Actually these resource constraints
impact all areas of inception and implementation but perhaps the most significant area is finance,
where it has limited the level of budget review and performance of the Financial Management
Assessment. This is not seen as a problem as most, if not all, SIEs are planning sub-project
implementation with dedicated support teams equal to or greater than that of PMU/PMC.
Secondly, there are sufficient financial controls in place (e.g. monthly reporting/verification, two
independent audits) to ensure probity. Nevertheless PMC is proposing to strengthen the M&E and
Finance Unit to ensure comprehensive monitoring (see recommendations below) once the sub-
projects are implemented. When required this could lead to some adjustments during
implementation. There is no doubt though that it would still be very helpful if more time would
be granted to the Project.

        17. On coordination and cooperation

Over the period September 2009 – March 2010 two official EDFF Coordination meetings were
conducted. The complex structure of EDFF with parties involved at various levels and major
decisions and actions that need to be taken in a timely manner demands that these meeting are
conducted more regularly and be well prepared and the results put in minutes and be distributed


24   See estimated time schedule in Annex 3.
25   See list in Annex 1


                                                                                                 58
for follow-up. PMC will also attend to a request by KPDT to establish a
coordination/communication network for EDFF relevant partners in Jakarta. PMU/PMC will
continue to have weekly staff meetings with Satker representatives present.

   18. On security

In November and December 2009 a number of violent attacks took place on foreigners and
representatives of the donor community residing in Aceh. Although the number of direct
casualities was limited the incidents show that security is still an issue that has to be taken into
account by foreigners living in Aceh and the Acehnese society in general. With high
unemployment and few alternative opportunities available, the latent unrest within the society
could possibly change again into violent actions. In February 2010, 17 terrorists were arrested
and 6 killed in Aceh Besar from a possible group of 50. In March 2010 a security advice was
given to PMC expat consultants by the WB to keep low profile, do not gather with many
foreigners in certain places, due to threats by the same terrorist groups hiding in Banda Aceh and
surrounding areas. In the meantime the Consultant firm has provided guidelines on handling
emergency situations.




                                                                                                 59
   19. Recommendations in respect of Project Management: Component I
Duration EDFF

The EDFF project is a unique concept/model. It may be for the first time in Indonesia that
NGOs (SIEs) are hired to work for and together with local governments in the area of
economic/private sector development. All partners i.e. GoA, GoI, WB as well as SIEs so far
selected have limited experience with this concept/model. One can say that all key EDFF
partners are still in a learning phase requiring more time and energy (more than anticipated
apparently during its conception) to get it fully internalized by all partners. In this connection
the PMU/PMC had to conduct synchronization meetings in respect of the sub-projects with
SIEs and local governments concerned in all 13 districts as the local governments were only
limited aware about the EDFF project and its concept. Hence when the proposals were
scrutinized by the Selection Committee and (Technical) Consultants substantial revisions
were required taking a lot of extra preparation time. In addition major efforts have to be done
with the selected SIEs to prepare the documents required by the WB and GoI, such as the
Environmental Management Plan, various financial management requirements, procurement
plans and memoranda of understanding/registration with central government agencies. The
project being an on-budget one also creates serious administrative delays due to limited
experience with the EDFF concept/model with government agencies concerned. This
preparatory phase is still ongoing and appears to require much more time then foreseen. It
would be best if the project could be extended to cover time lost as a result of the above
mentioned constraints. It is also clear that due to the ―inexperience‖ of the SIEs with GoI and
WB financial (and other) rules and regulations, intensive consultations, perhaps through
several workshops, are required so SIEs will be able to implement their sub-projects and
report conform GoI and WB policies.

Justification for additional local Technical Assistance

Given the fact that the EDFF Aceh project has entered into a next phase -the consultations
and negotiations with the selected SIE‘s- there is a clearer view on the required technical
input in the remaining project period. It is known now that SIEs have limited experience with
WB and GoI regulations and the innovative concept of EDFF where SIEs will work for and
with local governments. PMU/PMC feel that additional technical supervision capacity is
required as already referred to above. PMC therefore proposes to recruit some technical
assistants on an intermittent bases according to need in terms of technical and financial
monitoring. These Assistants shall be mostly in the field and check on a regular basis the
quality and progress of the subprojects and the financial performance. Since there are several
minor construction works involved in some of these subprojects, PMC feels there is also a
need to include in the TA team a senior local Civil Engineer, during the construction period.

Secondly, because there will be enormous amounts of information, documents, reports that
need to be properly processed, put in a data base that is transparent and can be shared by all
stakeholders, there is a need to expand the EDFF management team with a data processor.
Furthermore the need to translate either in Bahasa Indonesia or in English, the various reports
and other documents, requires extensive services of a professional translator. There is also a
need for a financial software specialist to help with the selection and implementation of
accounting software.


                                                                                               60
Thirdly, PMU/PMC experience with the Satker/Bappeda so far shows that the latter has
difficulty coping with efficiently facilitating the activities of PMU/PMC due to limited
experience and also staff constraints. Simple administrative matters such as the issuance of
travel permits (Surat Jalan) are often seriously delayed. At the same time the PMU lacks
sufficient petty cash facilities to advance regular office expenses. It is proposed to increase
capacity and capability by providing Satker with a Technical Assistance like an accountant
experienced with donor funded projects, to train and coach permanent staff in the EDFF
Satker at Bappeda to ensure smooth and timely Project implementation by PMU.

Proposed additional technical assistance inputs in table below.

                        Type of expertise                     Input in working
                                                             months (lumpsum)
                        Technical Assistants (finance,
                        agriculture, fisheries, livestock,
                        SMEs, civil engineer, accounting
                        software specialist)                        45
                        Accountant for Satker                       10
                        Translator                                  10
                        Dataprocessor                               10

                TOTAL person months                      75
Note: as there maybe changes in line with these mentioned needs depending on project
progress, these person months are tentative and in the manning schedule presented as
lumpsum unallocated26.

With such an additional set of resources it will facilitate PMU/Satker to carry out the project
in a good manner to ensure its optimum success.

Operations

Based on the operational experience of the last two quarters and on the above mentioned need
for additional manpower resources at PMU, a number of items in the original contract for
Consultant Services also need to be revised and budgets upgraded.

1. Transport: During the start up of activities in the inception period PMU/PMC had to
   economise considerably on transport because of lack of transport facilities, which
   hampered conducting activities initially. The situation was that the project could procure
   only two cars as per contract and that the GoA would provide an additional car for PMU.
   However the latter car never emerged. Hence one PMC car is until now permanently in
   use by the PMU. Another main reason of unforeseen transport shortage are that additional
   field visits are required then originally planned for because the apparent lack of
   socialisation of local governments on EDFF required more frequent field visits to correct
   that situation. Secondly also much more effort had to be put in introducing SIE sub-
   projects with the districts, again requiring unforeseen additional field trips. Finally and
   the main reason for the request for extra funds is that the coordination with the districts
   and the relative ―inexperience‖ of SIEs will definitely require more frequent field trips by
   staff of the different PMU/PMC Units. SIEs are ―inexperienced‖ with the EDFF model

26   See Annex 2: Mobilisation schedule PMC


                                                                                              61
   and WB & GoI procedures hence to ensure smooth implementation it is foreseen that
   M&E, financial supervision, procurement consultations etc. will require many more field
   visits. It is therefore proposed that PMC will continue to rent an additional car until the
   end of the Project period so there will be 3 cars available for PMC & PMU. An additional
   amount for budget line 9 ―operation & maintenance cost cars‖ of 50 million IDR of the
   Local Reimbursable Costs is therefore requested for payment of the cost of the rental car.
   Total budget for operational costs as per contract are IDR 460,800,000 or around 13.5
   million per month (34 month). With having a third car operating full time up to June 2012
   it is calculated that an additional amount of 2 million IDR per month for 25 months will
   suffice. Hence the request for 50 million extra.
   Even then transport facilities will still be tight so it is planned that additional local
   TAs/staff will use mainly public transport facilities to go in the field and where feasible
   they will be stationed in the districts concerned.
2. Field allowance for local staff/consultants: The cost of the planned field visits during
   implementation will be more than what is budgeted for based on past experience and
   planned additional local consultants/staff projected by the PMC (see explanation/same
   justification above). An additional 150 million IDR is requested for budget line 1 of the
   Local Reimbursable Cost in IDR. There will be no increase in unit costs, just additional
   allocations for more trips.


        20. Recommendations in respect of Project Management: Component II
PMU staffing

Workshops/capacity building/training:

There may be a chance that the EDFF project will be extended after June 2012 using
remaining MDF or other fund sources. Replication using central government funds in Aceh
or other parts of the country is also possible. It is also possible that a similar development
project may emerge from GoA development plans. A main if not the main task of the
Consultant is to help building sufficient capacity within Bappeda Aceh and KPDT Jakarta to
manage large scale development projects like EDFF after the latter‘s closure. In Annex 10 of
the OM the training and capacity building mapping plan plus budget has been provided based
on conducted training needs assessment by PMC jointly with the PMU. It appears that the
available budget is quite insufficient. New requests from KPDT to be briefed extensively on
the sections in the OM regarding procurement, financial, M&E, Safeguards and Ethics were
also forwarded to PMC for consideration. Therefore an additional amount of 250 million IDR
for budget line 16 of the Local Reimbursable Cost in IDR is requested. In the 1st version
capacity building plan included in the OM a higher figure was proposed based on a training
needs assessment (TNA). As the available budget in the Contract for Technical Assistance
Services only provided a 191 million IDR budget, after the TNA this is clearly insufficient
and a new budget of around 440 million IDR is proposed. For capacity building activities that
cannot be funded from the Consultant Contract collaboration will be sought with SIEs, Satker
and KPDT, to explore joint financing where feasible27.



27
     Annex 6: The revised capacity building plan based on the proposed budget of 440 million IDR



                                                                                                   62
Nevertheless this objective of Component 2 of EDFF can only be achieved though if
Bappeda/GoA and KPDT will continue to provide sufficient and capable staff to learn about
and get experience with design and implementation of such large scale development projects.
According to the Consultant both PMU and the KPDT secretariat may be strengthened
further by additional staff; particularly in the areas of M&E, Finance and Procurement and
overall management. PMC is proposing to add more Bappeda technical staff to each unit to
cope with the workload and build/create within Bappeda and KPDT this additional capacity
and experience with the implementation of large-scale foreign donor-sponsored projects.

   21. Funding the cost of additional management capacity of PMU/PMC
It appears that both extra (TA) staff costs of 1.5 billion IDR and additional operational costs
of approximately 450 million IDR could be financed from savings on the costs of services of
expat and local TAs who showed up late (see table below).

Proposed Operational cost increase

Transport Additional           50,000,000
Training                      250,000,000.
Field Allowances increase     150,000,000


Proposed additional Local
Technical Assistance

Various technical national
experts according to need      550,000,000
Senior Civil Engineer          100,000,000
Accountant Satker              100,000,000
Translator                     150,000,000
Data processor                 150,000,000
Total                        1,500,000,000




                                                                                            63
Annex 1: List of sub-projects, tentatively selected, and additional proposed in order of priority
         (figures on revised budgets and savings are tentative)




                                                                                                    64
65
Annex 2: Mobilisation schedule and status International & National Consultants




                                                                                 66
Annex 3: Overall timeline of activities assessment/ selection process of SIEs
No   Activity                                                                  Time             Responsible
1    Socialisation of EDFF in the Acehnese society                             Nov.    2008-    Bappeda/
                                                                               now              Satker/ PMU
2    Prepraration of the Call for Proposals                                    Feb – Mar 09     PMU
3    Advertising for the Call for Proposals on EDFF‘s Internet Website and     Apr 09           Bappeda/
     in National Newspapers                                                                     PMU

4    Interested potential SIEs collecting information from Bappeda/ PMU        Mar - Apr 09     Bappeda/
                                                                                                PMU
5    Conducting briefing/ information sessions with potential SIEs             Mar - Apr 09     Bappeda/
                                                                                                PMU
6    Establishing a ‗Frequently Asked Questions‘ (FAQs) section at             Apr – Jun 09     PMU
     EDFF‘s Website
7    Submission of Sub-project Proposals before deadline                       Jun 09           SIE
8    Opening session and administrative check                                  Oct 09           PMU/ PMC/
                                                                                                Bappeda
9    Phase I Technical Check, including check against RPJMD at                 Oct 09           PMU/ PMC
     district/province level (without scoring)
10   Phase II and III Technical Check (with scoring)                           Oct – Nov 09     PMC/ PMU
11   Consultation with relevant parties such as Local Governments,             Nov 09           PMU/ PMC
     Provincial DINAS and representatives of the private sector but not with
     NGOs that submitted proposals and restricted to verification on issues
     included in the Proposals; organization of field visits and drafting of
     field reports and finalising scoring/assessment
12   Drafting of Operational manual and forwarding to KPDT and WB for          Oct 09 – Jan     PMC/ PMU
     approval                                                                  10
13   Assignment of the Sub-project Selection Committee                         Dec 09           Bappeda
14   Preparation of Sub-project Assessment Report by PMU to be submitted       Nov – Dec 09     PMU/ PMC
     to EDFF Sub –project Selection Committee
15   EDFF Sub-project Selection Committee reviewing Sub-project                Dec 09 – Jan     SIE Selection
     Evaluation Report prepared by PMU and making provisional selection        10               Committee
     of Sub-projects
16   Evaluation and drafting of report with recommendations by the             Jan 10           SIE     Sel.
     Selection Committee                                                                        Committee
17   Report on provisional selection by EDFF Sub-project Selection             Feb 5            PMU/ WB
     Committee to PMU and subsequent presentation of agreed list to WB
     for first No Objection Letter (NOL)
18   1st NOL from WB on provisional list and on OM endorsed by KPDT            Feb 10           WB/ KPDT
19   Negotiations on technical and financial issues with provisionally         Feb – April 10   PMU/ PMC/
     selected SIEs including financial management assessment                                    SIE/ GoA
20   Drafting and signing MOU for KPDT and SIE; MOF providing permit           April 10         PMC/ KPDT/
     for International SIEs                                                                     MOF
21   Finalisation by PMU on shortlist taking into account negotiation and      Mar – Apr 10     PMU/ PMC
     assessment results and forwarding to WB for 2 nd NOL
22   2nd NOL from WB to final list                                             Apr - May 10     WB
23   Informing SIEs on the results of the final evaluation                     Apr – May 10     PMU
24   Preparation of grant agreements for the SIEs whose project(s) have        Apr- May 10      PMU/ PMC
     made it to the final stage
25   Negotiations between PMU and SIEs on reimbursement costs                  Apr-May 10       PMU/ SIE
     financing, and SGA signing and commencement of baseline survey
26   Commencement of sub-project implementation                                May- June 10     SIE
27   Start M & E sub-projects                                                  June 10 and      PMU/ PMC
                                                                               onwards




                                                                                                           67
Annex 4: Financial Tables
Expenses by Consultant- Contract Consultant' Services up to March 31 2010


                                                                                           Balance in   Balance in
                                                                                      st
                                                       Expenses up to       Expenses 1 Q   Euros        US$          Balance In IDR
                                    Available budget   December 2009        2010           31/3/10      31/3/10      31/3/2010



International Staff paid in Euros   1,413,944          168,691              140,123        1,105,130


International Staff paid in US$     1,690,398          124,441              209,208                     1,356,749


National staff paid in IDR          4,880,000,000      160,000,000          326,600,000                              4,393,400,000


Reimbursable in Euros               230,250            20,089               19,180         190,981


Reimbursables in US$                73,500             18,113               28,510                      26,877


Reimbursables in IDR                6,013,950,000      500,307,648          685,506,705                              4,828,135,647


                                                                            Total          1,296,111    1,383,626    9,221,535,647




                                                                                                                                      68
Tables 2 Interim Financial Reports. Special Account Activity Status




                                                                      69
Interim Financial Reports: Summary Sheet for Payments of Contracts Subject to Prior Review




                                                                                             70
71
Interim Financial Reports: Statement of Expenditures for those NOT Subject to Prior Review




                                                                                             72
73
Interim Financial Reports: Project Cash Forecast (Part I)




                                                            74
Interim Financial reports: Project Uses of Funds by Category as per bank statements




                                                                                      75
Interim Financial Reports: Liquidity Position per 31 March 2010




                                                                  76
Annex 5: Terms of Reference PMC 1




                                    77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
Annex 6: PMU/KPDT Capacity Building Plan



TABLE OF CONTENTS

Introduction Institutional Strengthening and Capacity building
       Rationale and background
       Objectives
1. Training methodologies
     1.1    Capacity building through coaching and on-the-job training
     1.2    Training Needs Assessment (TNA) principles

2. Development of Training Plan

3. Areas for training and capacity building

4. Assumptions and conditions
5.   EDFF Training Mapping Plan




                                                                         93
1.   Institutional strengthening, and capacity building

Rationale and background

The success of EDFF-financed interventions will rely both on the quality of the selection
process of the SIEs and the capacity to manage the contracts critically by the supply side
(BAPPEDA/PMU and the Secretariat in KPDT), as well as on the ability of the SIEs to
manage, operate and supervise the implementation of the proposed investments and services.

Given the diversity of partners involved, and its different level of preparation, experience and
interest in the project, it is important capacity is built with the concerned institutions so that
institutional assignments and responsibilities of each partner agency (key stakeholders and
implementing agencies) are clearly defined and agreed upon.

Leading and coordinating bodies as KPDT and BAPPEDA/ PMU should foster an open and
transparent process to all parties concerned. Weak internal control systems, poor record
keeping and financial information system reporting, and input-oriented procedures, generally
enhance inefficiency, obscure transparency, reduce economy of processes, and open ways to
fraud and corruption. Clear procedures, guiding principles and control systems should be
pursued to minimize such risks.

Delays in the procurement process are often caused by staff of implementing agencies with
insufficient experience in and understanding of the procurement requirements and conditions
and disbursement aspects. The earliest and appropriate training of staff in such competencies
will be to the direct benefit of the Project.

The real challenge for project implementation has always been the establishment and
maintenance of efficient and relatively stable organizational units that can exercise effective
management and supervision. Getting projects/programs off to a prompt start, including a
fully staffed KPDT EDFF Secretariate and BAPPEDA/ PMU at the outset, is a boost to
performance.

Training and capacity building are major tasks to be conducted in EDFF. However, the role
and interaction of the stakeholding parties need to be clarified. What are their roles, their
limitations and training methodologies that can be applied?

However, training and capacity building are only one side of the coin, the other side is the
awareness that should exist among the trainees about their role –and the role of the
institutions they are working in. They also should be aware of the usefulness and sense of the
manuals and materials they are learning to understand. Once trainees know what they are
doing and what they are doing it for, their willingness to learn is much bigger then when
training is just an obligatory exercise.

Strengthening of the local capacities could therefore be a very valuable additional output. By
incorporating the institutions right from the start in the different operational mechanisms and
by activating a transparent and frequent dialogue with them, the PMU might be able to turn
the normal project routine into the daily routine of these stakeholders. So PMU would not
only link with the local authorities as to check whether proposed sub projects are matching,

                                                                                               94
or in line with existing development plans, but by trying to tie in also some of the local
authorities in its capacity building exercises.

The planned institutional strengthening and capacity building programme will work along
these lines and address the issues mentioned.

Objectives

The objectives of this EDFF training programme are to build the capacity of and
strengthening the PMU/Bappeda, KPDT and possible other institutions relevant for the
economic recovery of Aceh. This will be done through hands-on and more formal training
and skills development of its staff to ensure strong project management including efforts that
cover a number of aspects of project design and management, sub-project selection and
implementation, including sub-project preparing detailed design and tender documents,
safeguards compliance, procurement, sub-project supervision, and other development
monitoring tools and anti-corruption measures. These are important aspects given the longer
term needs of Aceh for economic development which will not be addressed through the
EDFF.


2.   Training methodologies

Capacity building through coaching and on-the-job training

Transferring know how can take place in a variety of ways. The coaching and on-the-job
training are very effective ways for building up, or strengthening already existing capacities
and skills. Although several training and coaching activities already have taken place as part
of the reconstruction process of Aceh, it is noted that apart from the many technical
trainings, general courses mostly were geared towards traditional tools such as ZOPP, log-
frame, the PCM (Project Cycle Management) and SWOTs.

More personalized and flexible capacity building tools are more appropriate in cases where a
basic knowledge on key methodologies like log-frames is available. A strong emphasis on
on-the-job training, coaching and mentoring will be thus beneficial.

Vice versa training has a major influence on the continuous improvement of an organization.
One could say that life-long education leads to ‗life-long quality‘. This is best illustrated in
the following diagram:




                                                                                             95
                application of the
                                                                determining learning
              acquired knowledge,
                                                                objectives, designing
              skills and attitudes in
                                                                    training plan
                      practice




                                                                                  acquisition of
gaining experience,              Working                  Training              knowledge, skills
learning in practice           Environment                Situation             and attitude in an
                                                                               educational context




                realization of the
              necessity of change                                conclusion and
              and determination of                                 evaluation
               the training needs




The emphasis in on-the-job training is as follows:

       The tasks and functions of the trainee;
       The Expert to assess his/her output;
       Expert to hold discussions with trainee on any shortcomings;
       Expert to provide guidelines for improvement;
       Trainee improves his/her output following discussions and guidelines.

The last two sequences could take more than one cycle, depending on the ability of the
trainee to capture knowledge and learn skills. This is a very practical and useful method by
which individual staff could improve their knowledge and skills.

Training Needs Assessment (TNA) principles

The needs assessment phase consists of organizational support and analysis systems,
including a requirements analysis that helps the analyst determine what data need to be
collected and from whom.

Needs assessments also includes the development of tasks as well as knowledge, attitudes and
skills (KAS) analysis and the person analysis, which is used to determine what gaps actually
exist in the workforce concerning need knowledge, skills, and abilities. When the needs
assessment is carefully designed the disruption is minimized and cooperation is more likely.
Thus the training experts will take steps to work effectively with all parties and gain the trust
and support of the participants in the needs assessment. Establishing liaison teams and
working groups that help facilitate the process becomes a necessary part of the needs
assessment. Establishing the organizational support is the first step in the needs assessment
process because a failure to do so makes accomplishing a needs assessment a very difficult, if
not a daunting task.

In order to determine the training needs the sequenced process followed is described below.

       Review existing qualifications of trainee;
       Determine requirements for the job at hand (review job descriptions);

                                                                                              96
        Determine gaps (Preliminary gap analysis);
        Hold discussions with trainee and bring those gaps to his/her attention (verify gaps);
        Finalize gaps in qualifications (Final gap analysis);
        Determine training needs.

With an understanding of what needs there are for training the common areas to several
trainees will be grouped. These will form the basis for the formal training sessions. Where
gaps are specific to an individual trainee on-the-job training will be provided.

3.   Development of Training Plan

The Training plan details the type of training to be provided (on-the-job and formal training),
the areas to be covered, timing, sequence, and course materials.

As ‗on-the-job training‘ is a less formal methodology it is not easy to define training
sequences and course materials. It is held throughout the period. The trainee is engaged in his
day-to-day tasks and works under the supervision of the experts. The Training plan highlights
the areas to be covered by on-the-job training and for whom. The plan also indicates an
assessment period in order to evaluate the results of on-the-job training.

For formal training though, the Training plan will elaborate a clear and comprehensive
programmed under which future training and capacity-building events will be organized.

                1.   The number, name and type of trainee;
                2.   Modules and breakdown of topics to be covered;
                3.   Sessions, frequency, and timing;
                4.   Assessment and evaluation of individual training sessions, and modules;

During the Inception Period the concerned Training Experts will arrive at a comprehensive
picture concerning the mandate, the role, the structure and the composition of the PMU as
well as the Secretariat in KPDT. Based on the assessment made the relevant experts will
define the general outline for training and capacity building activities during the inception
period, and will provide more details in the months following the inception period.

The Experts will be able to establish the global frame for this but a detailed transition plan
can only happen after the TNA has been conducted and the role, mandate and capacities of
the local staff of PMU (and KPDT) is clearly spelled out.

A provisional assessment on training needs and an outline for an in-house training program
will be made during the inception period. In the months following the inception period, a
better insight in training needs for administrative, financial and management tasks will be
obtained and this will form the basis for a more elaborated training and capacity development
plan.

4.   Areas for Training and Capacity Building

In the ToR, the Technical Proposal made up by the Consulting Firm and from initial
assessment of training needs at BAPPEDA/ PMU the following areas of training and capacity
building/socialisation are foreseen:


                                                                                               97
At BAPPEDA/ PMU level:

     -   Project Management in the context of achieving the EDFF objectives
     -   Training for Procurement
     -   Training for Financial Management
     -   Training for M & E
     -   Training for Communication
     -   TOT for Operating and Maintenance Website EDFF
     -   Workshop Implementation Project for SIEs

At District/SIE level:

     -   Workshop/briefings for Socialization by SIE for Subproject EDFF
     -   Workshop/briefings for Technical Implementation EDFF Project
     -   Briefing on Operating and Maintenance Website EDFF
     -   Workshop/briefings on Implementation Project


5.   Assumptions and conditions

In order to make training and capacity building as effective as possible the following
conditions are to be met:

     a) all staff is properly prepared and fully capable of carrying out their present tasks
     b) additional training is required for some staff in order to improve their performance
     c) for a more optimal PMU or KPDT Secretariate structure staff members need to be
        changing functions and positions
     d) part of the staff has not properly been selected and screened and is therefore not fit
        for their new tasks and responsibilities (in other words training would not make any
        difference)
     e) some of the core competencies of the PMU and KPDT Secretariat can or have not
        been covered by the current PMU staff so additional skills need to be contracted

The implementation of the training activities particularly training conducted in workshop
type of gatherings will require sufficient EDFF funds to be provided by BAPPEDA/ PMU,
PMC, KPDT, SIE or from other sources.




                                                                                                 98
99
100
101
102
103
104
105
106
Annex 7: Notice to proceed




                             107
Annex 8: MINUTES MEETING PEMBUKAAN SUBPROJECT PROPOSAL EDFF
           (PMU, PMC, SATKER, dan UTUSAN GUBERNUR ACEH)
                        SENIN, 28 September 2009
                          Ruangan PMU EDFF


I.     Pengantar meeting, Amhar Abubakar (PMU EDFF)
        Permintaan untuk memasukkan proposal (Request For Proposal) sudah dilakukan
          antara 24 April s,d 25 Juni 2009. Ada 85 insitusi yg mengajukan proposal kepada
          PMU EDFF. Semua proposal dimasukkan dalam kotak tertutup dan akan dibuka
          bersama hari ini. Informasi terperinci ttg proposal belum diketahui dan akan
          segera diketahui setelah dilakukan penilaian bersama (assessment)

          Seleksi proposal akan di lakukan mengacu kepada prosedur dan mekanisme yang
           telah disepakati bersama

          Tidak ada perlakuan khusus atau proteksi untuk lembaga dari lokal dalam proses
           seleksi proposal (Jawaban thd pertanyaan Pak Muhammad)

II.    Muhammad, Kepala Biro Ekonomi Setda Aceh
        Dalam melakukan proses seleksi proposal, PMU diharapkan untuk mengikuti
         standar penilaian yang telah ditetapkan dan penekanan pada transparansi sejauh
         mana tidak bertentangan dengan landasan atau acuan yang telah digariskan.

          Perlunya diperhatikan unsur profesionalisme dalam pemilihan para
           calon pelaksana subproyek

          Apakah ada perlakuan khusus (proteksi) untuk lembaga-lembaga
           lokal yang mengajukan proposal kepada PMU

          Komunikasi dengan Pemerintah Aceh dan stakeholders lainnya
           mengenai informasi tentang proses seleksi proposal dan pelaksanaan proyek
           EDFF harus dilakukan secara efektif dan kontinyu


III.   T.M. Bastian, Kepala Bidang P2EK Bappeda Aceh
        Perlunya keseimbangan dalam memilih para pelaksana proyek seperti
          lokasi proyek, asal lembaga (SIEs) dan komposisi komoditas unggulan yang akan
          dikembangkan

          Finalisasi pembentukan Komite Seleksi (seperti penetapan anggota
           dari unsur akademisi yang terpilih) akan dilakukan dalam minggu ini

          Mekanisme seperti apa yang akan di pakai apabila pegembangan
           komoditas yang diajukan dalam proposal terlalu dominan pada komoditas tertentu



                                                                                      108
IV.    Wiebe, Team Leader PMC
        Prosedur, instrumen dan format untuk pelaksanaan proses seleksi
          proposal sudah dibuat dan sudah disepakati bersama

          Proses seleksi proposal akan dilakukan secepat mungkin dan
           diharapkan pembentukan Komite Seleksi proposal dapat segera difinalisasikan

          Pihak konsultan akan memfinalisasi dokumen Operation Manual EDFF
           Project, (memprioritaskan dan segmentasi pada hal-hal yang sangat penting dulu
           seperti mekanisme seleksi subproyek proposal)

V.     Muhammad Iskandar, PMU EDFF
        Fasilitasi pembukaan proposal secara simbolis

          Koordinasi tahapan, prosedur dan mekanisme proses pembukaan
           proposal sampai pelaksanaan assesment subproject proposal

Results of opening session



                    LOCATION OF SUB-PROJECT
                             3% 3%                                          Aceh Besar

                                        11%           3%                    Banda Aceh
                                                                            Aceh Timur
                   17%                                                      A. Utara
                                                    6%
                                                              3%            Pijay
                                                                            Pidie
              6%
                                                         8%                 Bener Meriah
                6%                                                          A. Tengah

                                                   8%                       Prov. Aceh
             3%                                                             Langsa
                             11%             6%                             Simelu
               3%                     6%
                                                                            A. Jaya




                                                                                         109
           THE NUMBER OF ACCEPTED PROPOSAL
                  (THE TOTAL BUDGET)



                47%                                       POSIBLE
                           53%                            RECOMMENDED




TOTAL IDR : 56.122.901.875
TOTAL US$ : 62.044.065


                 DISTRIBUTION OF SEKTOR
                     IN ACEH PROVIN
                   Agriculture    Fisheries   Livestock   SME

                            22%

                                                45%
                        11%


                                 22%



 THE PROPOSALS THAT WERE RECOMMENDED
                                                                    110
                 AFTER TECHNICAL APPRAISAL
                         ( PHASE I )
NBR         TITEL            SECTOR         LOCATION        ESTIMATED        PROPOSED
 OF                                          OF SUB-         BUDGET             BY
PROP                                         PROJECT         ( USD $ )
  .
  2    Development of       Fisheries      Atim,           3977.000         Public Servis
       organic farming                     Langsa,                          Institution of
       and fair trade                      Siemeulu,                        Unsyiah
       center                              Aceh Jaya,
                                           Aceh Besar,
                                           Sabang
 10    Improved aceh        Agricultures   Prov. Aceh      6.800.000        Swiss Contact
       Cocoa economi
 12    Gayo copy            Agriculture,   Bener Meuriah   1.690.000        Consrtium for
       brending and         SME            Aceh Tengah                      Villages
       quality                                                              Strengthening
       improvement                                                          in Aceh /
                                                                            Convis Aceh
 21    Smallholder          Live Stock     Bireun,         2.786.200        Muslim Aid
       capacity building                   Pidie,
       for improved                        Pijay
       production and
       enhance market
       access
 28    Aceh beef sector     Live Stock     Banda Aceh,     4.896.463        CHF
       competitiveness                     Aceh Besar                       Internasional
 29    Crapour fish         Agriculture,   Pijay,          4.441.000        Crescent
       commodity and        Fisheries,     Pidie,
       cacao cow based      Live Stock     Bireun,
       integrated                          Lhokseumawe
       farming system                      , Sabang,
                                           Aceh Utara,
                                           Aceh Timur,
                                           Aceh Besar
 32    Patchouli            Agriculture,   Bireun          2.158.213        Project
       intencivication                                                      Concern
                                                                            Internasional
                                                                            Indonesia
 33    Center of            Agriculture    Beunar Meriah   1.429.440        Bitra
       training and                        Aceh Tengah                      Indonesia
       information and
       agriculture and
       socio economic
       development
 42    Integreted tourist   SME            Aceh Besar      1DR              LPMA
       zone job creation                                   10.518.677.500
       in turist industry
 44    Green                Fisheries      Bireun          2.700.000        Aceh
       engineering                                                          Development
       approach to                                                          Fund (ADF)


                                                                                             111
      improvr fish
      processing
      industry


49    Enhancement of      SME           Prov. Aceh       4.267.780        Pinbuk and
      bissness and                                                        Aismif
      export
      commodity by
      developing aceh
      wholesale
      finance and
      investment for
      agribisniss
50    Berlian rubber      Agriculture   Aceh Jaya        5.384.320        Islamic Rellief
      coorporative
      project
52    Sustaenable         Fisheries     Siemeulu,        4.680.351        Islamic Rellief
      seafishiries for                  Singkil
      seumulu and
      singkil
85    Rehabilitation of   Agriculture   Prov. Aceh       6.586.944        Yys Bangun
      smallholder                                                         Mitra
      plantation value                                                    Sejahtera
      added processing                                                    Sejati
      and marketing of
      cacao, coconut
      and rubber
86    Coorporative        SME           Aceh Besar,      4.095.954        United
      enterprice                        Biereun                           Methodist
      development                                                         Committee On
                                                                          Relief
                                                                          (UMCOR)
95    Developing          Fisheries     Prov. Aceh       6.150.400        Centre for
      integrated                                                          Agribusiness
      mariculture                                                         Community
      business in aceh                                                    Development
                                                                          (PPMA)
102   Achieving           Agriculture    Pidie, Pijay,   IDR              Komite
      economic                             Bireun        45.604.224.375   Monitoring
      sustainability                                                      Perdamaian
      through cocou                                                       dan
      smallholder                                                         Demokrasi
      modernization                                                       (KMPD)
      programme



TOTAL IDR : 56.122.901.875
TOTAL US$ : 62.044.


                                                                                            112
Annex 9: TOR for the EDFF Selection Committee




                                                113
114
115
116
Annex 10: Personnel and staffing PMU

Qualifications Required for the GOA representatives working in the PMU.

 Qualifications of Deputy Manager :
  a. Minimum University Master Degree, related to economy, such as economic
     development, business, agriculture, fishery and industry
  b. A minimum Grade of Pembina/Lektor Madya or Qualification IV/a
  c. Knowledge in RPJMD (Medium Term Development Plan, the Law on Governing
     Aceh (Law 11/2006) and Master Plan of Regional Rehabilitation and Reconstruction
     (Perpres 47/2008).
  d. Working Experience, minimum of five years, especially in governmental economic
     development works
  e. Able to communicate actively in English
  f. Good communications skills, both written and oral
  g. Good leadership skills and able to work as a team within organization as well as
     maintain good coordination with institutions related to EDFF project. .

 Qualifications of Monitoring and Evaluation Officer :
   a. Minimum University Degree (Bachelor) ,
   b. A minimum Grade of Penata ot Qualification level of III/c with minimum eight
       years duration of service for government
   c. Understand the concept of monitoring and evaluating as applied in regional
       development
   d. Possesses working experience in managing government projects in government
       institution
   e. Able to work as a team to achieve EDFF Project‘s objectives.
   f. Good communications skills, both written and oral

 Qualifications of Procurement Officer :
   a. Minimum University Degree (Bachelor) ,
   b. A minimum Grade of Penata ot Qualification level of III/c with minimum eight
       years duration of service for government
   c. Hold national Procurement Certificate minimum of L2
   d. Understands the regulation and procedures for goods and services (Kepres 80 2003)
   e. Possesses working experience in procurement within government institutions.
   f. Able to work as a team to achieve EDFF Project‘s objectives

 Qualifications of Financial Management Officer :
   a. Minimum University Degree (Bachelor) ,
   b. A minimum Grade of Penata ot Qualification level of III/c with minimum eight
       years duration of service for government
   c. Understand government procedures in finance and budgeting
   d. Possesses working experience in financial and budgeting works within government
       institutions.
   e. Able to work as a team to achieve EDFF Project‘s objectives




                                                                                   117
 Qualifications of Outreach/PR/ Dissemination Officer :
   a. Minimum University Degree (Bachelor) ,
   b. A minimum Grade of Penata ot Qualification level of III/c with minimum eight
       years duration of service for government
   c. Good understanding of Public Relations and Media communication
   d. Able to build good networking with press, especially local press
   e. Strong communication skills, both written and oral
   f. Able to communicate actively in English
   g. Possesses working experience in public relations and media within government
       institutions
   h. Able to work as a team to achieve EDFF Project‘s objectives

 Qualifications of Support Staff (Administration) :
   a. Minimum of a University Degree minimum of Diploma III or Sarjana Muda ,
   b. A minimum Grade of Pengatur or Qualification level of II/c with minimum four
       years duration of service for government
   c. Good skill in operation computer
   d. Understand office administration
   e. Able to communicate in English
   f. Possesses working experience in office administration within government institution
   g. Able to work as a team to achieve EDFF Project‘s objectives

Transparency
All PMU staff must sign and adhere to the Integrity Pact under Keppress 80/2003, which
requires them to divulge any possible conflict of interest situation. In addition, consultants
will be asked to declare whether they have any family or business relation with PMU officials
or any of the procurement committee members. Failure to disclose such a situation can result
in dismissal.




                                                                                          118
Annex 11: List of equipments and other procurements by PMC

                                 Daftar Inventaris Kantor PMC - EDFF (Updated April 2010)

No              Nama barang                 No Inventaris       Yang Menggunakan            Keterangan

 1   Notebook
     Notebook Compaq Presario V 3737
 1   TU                                BA/001/PMC-EDFF/INV/09   Ka. PMU
 2   Netbook mini HP 1013 TU           BA/002/PMC-EDFF/INV/09   Harbans Singh
 3   Netbook mini HP 1013 TU           BA/003/PMC-EDFF/INV/09   Machin Evan
 4   Netbook mini HP 1013 TU           BA/004/PMC-EDFF/INV/09   H.Hamid

 2   Personal Computer
                                       BA/005/PMC-
 5   PC, Screen Samsung 18.5"          EDFF/INV/09              Admin / Givi
                                       BA/006/PMC-
 6   CPU Pioneer ECS                   EDFF/INV/09              Admin / Givi
                                       BA/007/PMC-
 7   PC, Screen Samsung 18.5"          EDFF/INV/09              Finance / Haslinda
                                       BA/008/PMC-
 8   CPU Pioneer ECS                   EDFF/INV/09              Finance / Haslinda
                                       BA/009/PMC-
 9   PC, Screen Samsung 18.5"          EDFF/INV/09              Procurement /Irma
                                       BA/010/PMC-
10 CPU Pioneer ECS                     EDFF/INV/09              Procurement /Irma
                                       BA/011/PMC-
11 PC, Screen Samsung 18.5"            EDFF/INV/09              M&E
                                       BA/012/PMC-
12 CPU Pioneer ECS                     EDFF/INV/09              M&E


                                                                                                         119
                                        BA/013/PMC-
13 PC, Screen Samsung 18.5"             EDFF/INV/09              Server
                                        BA/014/PMC-
14 CPU Pioneer ECS                      EDFF/INV/09              Server
                                        BA/015/PMC-
15 PC, Screen Samsung 18.5"             EDFF/INV/09              Wiebe
                                        BA/016/PMC-
16 CPU Pioneer ECS                      EDFF/INV/09              Wiebe
                                        BA/017/PMC-
17 PC, Screen Samsung 18.5"             EDFF/INV/09              Juwita
                                        BA/018/PMC-
18 CPU Pioneer ECS                      EDFF/INV/09              Juwita
                                        BA/019/PMC-
19 PC, Screen Samsung 18.5"             EDFF/INV/09              Scretary
                                        BA/020/PMC-
20 CPU Pioneer ECS                      EDFF/INV/09              Scretary


3    Printer
21   Printer Canon MP 145 + Infus Kit   BA/013/PMC-EDFF/INV/09   Office Manager
22   Printer Canon MP 145 + Infus Kit   BA/014/PMC-EDFF/INV/09   Ka. PMU
23   Printer HP Laserjet 2015           BA/015/PMC-EDFF/INV/09   Procurement
24   Printer HP Laserjet 2015           BA/016/PMC-EDFF/INV/09   Adminstrasi
25   Printer OfficeJet K7100            BA/021/PMC-EDFF/INV/09   Adminidtrasi
     Printer Laser Jet P 1105           BA/041/PMC-EDFF/INV/09   Team Leader




                                                                                  120
4    Anti Virus
                                           BA/017 /PMC-
26   Kapersky Antivirus for 3 users        EDFF/INV/09
27   Kapersky Antivirus for 3 users        BA/018/PMC-EDFF/INV/09
                                           BA/019 /PMC-
28   Kapersky Antivirus for 3 users        EDFF/INV/09

5    UPS / HUB / Router
                                           BA/024 /PMC-
29   UPS ICA                               EDFF/INV/09
                                           BA/025 /PMC-
30   UPS ICA                               EDFF/INV/09
31   Switch Hub                            BA/028/PMC-EDFF/INV/09
32   Switch Hub                            BA/029/PMC-EDFF/INV/09
33   Hotspot Router                        BA/030/PMC-EDFF/INV/09                                     3Com
34   Hotspot Router                        BA/031/PMC-EDFF/INV/09                                     3Com
                                           BA/0 22 /PMC-
35   Sako 3000 VA , Stabilizer             EDFF/INV/09                                                SAKO
36   Copy Machine                          BA/023/PMC-EDFF/INV/09                                     Canon IR 2018n
37   LCD Infocus                           BA/026/PMC-EDFF/INV/09                                     BenQ
38   Microtik Port                         BA/027/PMC-EDFF/INV/09   Server                            RB 450
                                                                                                          S/N : LXPGL 08005948041
39   Notebook acer aspire 4732z            BA/032/PMC-EDFF/INV/10   Ka. PMU                                        DA2000
40   Netbook mini HP 110                   BA/033/PMC-EDFF/INV/10   No name                           S/N : CNU 9475s38
41   Projection Screen, Merk GIC, Tripod   BA/034/PMC-EDFF/INV/10   Mitting Room EDFF                 Tripod

 6   Filing cabinet
42   Mustang                               BA/035/PMC-EDFF/INV/10   Ka. PMU
43   Mustang                               BA/036/PMC-EDFF/INV/10   Ka. PMU
44   Mustang                               BA/037/PMC-EDFF/INV/10   (Team)outreach/PR/Dissemination
45   Mustang                               BA/038/PMC-EDFF/INV/10   (Team) Safeguards
                                           BA/039//PMC-
46   Filling Cabinet Axel MTB 3183         EDFF/INV/10              Communication unit
                                           BA/040//PMC-
47   Filling Cabinet Axel MTB 3183         EDFF/INV/10              Meeting room

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