Project Proposal Response Labour by qeq77379


More Info
									                         DRAFT PROJECT PROPOSAL OUTLINE
                                  (18th September 1998)

Project Number:              INS/.../...

Project Title:               Advisory Support and Training for Wider and Improved Use of Labour-
                             based Technology (LBT) in Infrastructure Programmes in Indonesia

Country Coverage:            Indonesia

Project Site:                Jakarta

Executing Agency:            International Labour Organisation (ILO)

Implementing agencies:       Department of Public Works and BAPPENAS (National Development
                             Planning Agency)

Co-operating Agency:
· Focal Point 1:             Department of Public Works.
                             Program Berbasis Pekerja (PBP) Task Force

·   Focal Point 2:           BAPPENAS
                             Padat Karya Advisory Group

Donor Agencies:              To be determined

Starting Date                Phase I:       Immediate Labour-based Technology
and Duration:                                     Basic Orientation and Programme Formulation
                                                  September 1998 (2 months)

                             Phase II:               Preparatory Assistance
                                                     November 1998 (4 months)

                             Phase III:              Full time support
                                                     April 1999 (36 months)

Donor Contribution:          Phase I:       USD 30,000          ILO ASIST-Asia Pacific

                             Phase II:               USD 220,000

                             Phase III:              USD 1,100,000

                                            Total: USD 1,350,000

Government Contribution:     Phase I:       Rp.---
                             Phase II:                Rp.---
                             Phase III:               Rp.---
                             Total                    Rp.---
                             (in kind)      ============
1.          Background and Justification:

1.1         Socio-economic situation in Indonesia

According to the World Bank1, Indonesia had 17% of its population living under US$1 per day in 1993
which then compared with 27.7% for East Asia and in 1995 this figure was 11.4% in Indonesia when the
East Asia region had improved to only 21.2%. In 1995 there were 21.9 million in Indonesia who were
living in poverty and the exchange rate of the Rupiah was Rp.2,200 to US$1.00.

As a result of the Asian financial crisis there has been a sudden and dramatic reversal of what had been a
steadily improving level of poverty in Indonesia and currently there are estimates of up to 40% of the 204
million population or about 80 million living in poverty. There is now a substantial increase in demand
for employment creation and adequate social protection for workers through programmes aimed at
poverty alleviation, and at enhancing productivity. According to the Department of Manpower2 there are
currently as many as 20 million job seekers in Indonesia.

During September 1998 the cost of unskilled labour covered under the Padat Karya3 programme is
Rp.7,500 or US$0.70 per work day, slightly above the minimum wage of workers in the area of Jakarta.
The actual exchange rate of the Rupiah during August 1998 has been in the order of US$1=Rp.12,500.
The low cost of labour and the very large numbers of unemployed job seekers make the wider and
improved use of labour in the construction and infrastructure sectors via labour-based technology an
essential strategy for addressing the current crisis.

1.2         Prior and ongoing interventions in labour-intensive public works programmes

The ILO has had some important and relevant recent experience in labour-based programmes in Indonesia
and there is ongoing support to the Institute of Technology Bandung (ITB) in the general field of labour-
based technology and more specifically in development planning. There is therefore an important base on
which ILO ASIST-Asia Pacific can build a new and expanded programme of technical support in labour-
based technology.

The ILO/World Bank-financed labour-based district road project with the Directorate General,
Bina Marga,4 from 1993 to 1995 upgraded labour-based methods already in use in Indonesia.
Focusing on four pilot districts in two provinces, the project developed and introduced improved

                 The World Bank Group Regional Brief for East Asia, September 1997.
                 ILO mission meeting with Mr Wiradi, Director of Self-Employment and Manpower Expansion,
                 Directorate General of Manpower Placement, 12 August 1998.
                 Padat Karya = Labour-intensive.
                 Bina Marga = Roads and Highways Division of the Department of Public Works.

techniques, supervision and organization for labour-based construction/improvement and
maintenance of local roads. A substantial part of the technical assistance inputs was undertaken
with a local consultant. The final phase of this project included a component of small contractor
training for labour-based road maintenance.

The major project achievements were: the general acceptance at a technical level of the viability of
labour-based methods both among the road authorities and among contractors, the demonstration
of the potential benefits and savings to be accrued through the use of labour-based technology, an
understanding of the capacity of locally recruited (rural) workers, in that with proper hand tools
and support equipment, supervision and motivation, labour productivity levels of international
standards can be achieved in Indonesia.

While this project can undoubtedly be described as a technical success, the Government of
Indonesia, then experiencing rapid economic growth and working very closely with contractors
using equipment based methods was not inclined to change its then equipment based programme
implementation methods or policy. At this time the exchange rate of the Rupiah was 2,220 to US$1
and even with this exchange rate there was economic justification for labour-based methods. A
report prepared by the project "A geographical focus for labour-based methods in Indonesia" will
be a useful reference document for the work of ASIST-Asia Pacific.

In 1996 the ILO commissioned a study by a local consultant for the “Analysis of impact of
infrastructure development programmes and employment creation" and there is currently a
programme of ILO collaboration established with the Institute of Technology in Bandung (ITB) in
respect of the application of IRAP (Integrated Rural Accessibility Planning) or development
planning procedures and there is an interest in the modification of the ITB undergraduate
engineering courses to incorporate labour-based technology modules.

An ILO task force in employment undertook a Support Services for Policy & Programme
Development (SPPD) mission to Indonesia in early 1998 and has prepared a study on ‘Employment
Challenges as a result of the Indonesian Economic Crisis’. This ILO report5 concludes that labour-
intensive public works programmes should be promoted as a response to the current crisis and
emphasises that “Public works programmes should focus on expanding existing programmes designed
to use labour to build and rehabilitate infrastructure rather than starting new ones”.

1.3        Government of Indonesia’s Public Works Programmes

The Government of Indonesia is currently in the process of implementing large public work
programmes, budgetted as nearly USD2.0 billion which should be able to generate employment
for up to 2 million persons provided that labour-based techniques are utilized where feasible. The
Government also has a plethora of labour-intensive (Padat Karya) Programs in various sectors.

The Padat Karya’s programmes are based with the Department of Public Works, Manpower,
Forestry, Mines/Energy, Local Government and Education and include: INPRES6 Programme
(Kabupaten and Desa7), IDT Programme (INPRES Desa Tertinggal8), Kampung9 Improvement

                Employment Challenges of the Indonesian Economic Crisis, ILO June 1998.
                Presidential Instruction
                District and Village
                Presidential Instruction on Neglected Villages
                Residential area for lower social-economic groups in a town or city

Programme (urban communities), the Padat Karya Gaya Baru10 Programme for the rural areas
and the INPRES SD/MI11 programme for education infrastructure renovation. All of these
programmes appear to have been hurriedly put together as an instant response to addressing
unemployment, with short-term job opportunities. Most of these programmes are struggling and in
need of both technical, planning and management advisory support. A description of these
programmes prepared by the World Bank, a summary sheet prepared by the ILO and a recent
weekly progress report on these projects prepared by BAPPENAS, are included in Annex A.

1.4      Project strategy

Employment generation and poverty alleviation are central to the ILO’s core mandate alongside the
promotion of human rights and workers’ protection. The ILO’s Country Objectives for Indonesia are now
being re-formulated in close partnership with the Government, Workers’ and Employers’ organisations.
Employment promotion and poverty alleviation has been given high priority.

The Employment-Intensive Programmes (EIP) of the ILO have been actively promoted globally by the
ILO as a powerful instrument for employment generation, through labour-based investment policies and
practices for infrastructure planning, development and maintenance, particularly over the past two
decades through the ILO’s central, regional and area offices.

Now, strengthening this programme is the ILO ASIST-Asia Pacific project based in the ILO Regional
Office for Asia and the Pacific (ROAP) in Bangkok. ASIST (Advisory Support, Information Services and
Training) specializes in the whole spectrum labour-based technology (LBT) from development planning
to development engineering and the application of labour-based technology in national employment
intensive programmes involving infrastructure works. It is planned that ASIST-Asia Pacific will manage
this technical assistance proposal.

1.4.1    Labour-intensive and labour-based programmes to be supported

During an ILO ASIST-Asia Pacific missions to Indonesia in August and September 1998,
discussions has been held with the Government, the World Bank, the Asian Development Bank and
UNDP on the possible role of ILO support to the Government of Indonesia’s programme of
massive public investment, designed with the intention of using both ‘labour-intensive’ (labour and
handtools only) and ‘labour-based’ (labour supported where necessary with equipment) methods
in public works programmes.

                New style labour-intensive, a Government’s programme that has been implemented recently as
                one of the ‘solutions’ for poverty alleviation.
                Presidential Instruction on Elementary School and Moslem Education at the Elementary Level
                (MI - Madrasah Ibtidayah = Moslem education at the elementary level)

These programmes include those covered by existing and planned government appropriations as
well as the World Bank, OECF and Asian Development Bank supported programmes for both the
rural and urban infrastructure sectors. Works programmes include the construction, rehabilitation
and maintenance of roads, irrigation, reafforestation, schools and housing and human settlements.
These programmes which aim to create millions of part-time jobs were discussed with specialists in
the Department of Manpower, Department of Public Works (DPW) and BAPPENAS.12 (Refer also

1.4.2    Advisory support and training focus

The area identified for immediate ILO assistance are in the area of awareness training for
government personnel, contractors and consultants concerning labour-based and labour-intensive
technology, and basic technical orientation for technical personnel of both government and the
contractors and workers and supervisors involved in these programmes. The DPW has requested
the earliest possible training and advisory support assistance for the labour-based and labour-
intensive programmes and has already established a special ‘Program Berbasis Pekerja Task
Force’ for this purpose as a result of consultations with ASIST-Asia Pacific.

In the medium and longer term the Department of Public Works would like to see full time ILO
technical support to the Department particularly in the area of training as well as in the area of
advisory services for the design, implementation and monitoring of their programmes. The
programmes of the Department of Public Works are potentially those with the major role to play in
medium and longer employment generation as they are able to be partially and appropriately
transformed into programmes using improved fully engineered labour-based methods and on a
much broader scale.

Three categories of work packaging are foreseen (i) Equipment-based but with some contract
elements or activities to be re-specified for labour, (ii) Labour-based, equipment supported works
programmes which will be substantially expanded and (iii) Labour-intensive (labour and hand tools

Whereas the Department of Public Works sets out to achieve the same quality standards with
labour-based methods as is possible with equipment and without any increase in project costs, the
Department of Manpower and other Departments have ‘crash programmes’ of labour-intensive
activities where the workers do not have supporting equipment, use only picks and shovels, have
little if any technical supervision and have little concern for labour productivity or project cost-
effective. Again, even here with the limited scope of these short-term labour-intensive ‘welfare’
programmes, the ILO can assist in recommending which kind of activities should be attempted,
setting out basic works procedures and recommending reasonable levels of labour productivity and
cost control.

               See ILO ASIST-Asia Pacific Indonesia mission reports, August and September 1998.

Both BAPPENAS and the Department of Manpower have also indicated a need for ILO technical
support for their programmes. The Minister of Peoples Welfare and Poverty Alleviation,
responsible for the coordination of certain labour-intensive infrastructure ‘crash programmes’
including those of the Ministry of Manpower has already sought ILO assistance to mount a national
awareness campaign on labour intensive projects as this programme is running very slowly with
only 5% delivery on a Rp. 600 billion programme.13 (Refer also to ANNEX A).

1.4.3    Choosing appropriate technology and the right concepts

It will be important that any new labour-based programmes are wherever possible conceived as
“mainstream” line ministry programmes and not seen only as just some sort of emergency,
temporary-relief effort where the line ministries concerned do not need to seriously consider the
introduction of fundamental change, where it is feasible and appropriate to do work in a more
employment-intensive or labour-based way.

It is also important that the project cycle is taken into consideration with appropriate community or
regional planning and operational and maintenance issues pre-conceived and pre-arranged. As
well the various programme ‘menus’ should clearly distinguish between public and community
work and between productive and social infrastructure.

This paradigm shift in approach is part of the fundamental changes involving technology choice
and the greater use of available low cost labour on a more permanent and therefore sustainable
basis which have been introduced into the ILO’s labour-based programmes globally in the past
four years. This long term goal does not however exclude the establishment of short term, labour-
intensive emergency responses, should they be necessary, however these should be structured in
such a way so as to enable their eventual conversion to more longer term, meaningful and
sustainable programmes.

1.4.4    Monitoring of programmes

Both DPW and BAPPENAS have called on the ILO to pay particular attention to assisting in
establishing an improved monitoring system that works efficiently in a country as large and
complex as Indonesia is. Both agencies acknowledge that the current monitoring arrangements are
inadequate and that comprehensive monitoring will bring with it the opportunities for improved
quality, cost control and accountability.

1.4.5    Accepting the scope and limitations of the programme

It is stressed here that the labour-based programmes should not be seen as a ‘panacea’ for the
current economic crisis as they will attract mainly unskilled unemployed workers and so far in
Indonesia mainly unskilled male workers have been involved in these programmes. For these
programmes to be really effective there must be a recognition that they are also management-
intensive and that the training of thousands of managers and supervisors and communities will
require considerable lead time. Nevertheless the labour-based programmes can and do play an
important role in addressing unemployment if they are tackled in a well planned and coordinated
manner and in a genuine spirit of cooperation and striving for their success in the national interest.

1.4.6    Fair working conditions for the workforce

                Meeting with Director a.i. of ILO Jakarta office, August 1998.

Fundamental to the ILO technical advisory and training support to these programmes will be the
promotion of fair working conditions for the workers to be involved in these expanded
programmes. To this end the ILO has recently produced a timely comprehensive guide14 for
employment-intensive programmes and this will be the basis of such promotion.

With the special tripartite (Government, Employers and Workers) structure of the ILO this
programme of technical support will pay particular attention to regular consultation with the three
ILO social partners and encourage their active participation in Task Forces of the programme.

1.5      Target groups

The target groups of this advisory and training project are primarily the government decision
makers and senior and middle management technical and professional personnel involved in the
infrastructure sectors. In addition to the government personnel, counterpart technical and
professional personnel in the contacting and consulting sectors will also be included as well as those
involved in technical education and professional development. Also important will be the
construction and public works workers union, the UN agencies involved in the infrastructure sector
and the major financial institutions supporting infrastructure programmes.

The indirect beneficiaries of this advisory and training project will be the hundreds of thousands of
workers to be engaged in the labour-based and labour-intensive programmes, who will benefit from
being engaged in meaningful employment, under fair working conditions and building or
maintaining infrastructure which will last.

1.6      Institutional arrangements

                David Tajgman and Jan de Veen, ILO, 1998.

The ILO is impressed by the speed and commitment by which Department of Public Works have
established the task force for their Program Berbasis Pekerja 15 , and appreciates the invitation by
the Deputy Chairman for Regional Development of BAPPENAS for the ILO to join the existing
Padat Karya advisory group and coordination of the Padat Karya Programmes where there is a
need for better understanding of the potential of and the best practices for the use of appropriate
labour-based and labour-intensive methods in infrastructure works programmes.

The medium and longer term support of the ILO would facilitate the two Special Task Forces to be
involved in a review of the Government policies and programmes for infrastructure works in close
collaboration with the various specialized UN agencies and also in consultation with other key
stakeholders (including trade unions, employers, contractors, consultants and professional
engineering and planning authorities and others not directly represented in the two Special Task
Forces. The ILO would then be in a position to recommend more permanent appropriate
technology changes and be able to assist with the reworking of specifications and contract
procurement documentation to realize the employment creation potential of the infrastructure
programmes. This should involve the input of specialists and extensive training.

With the Department of Public Works (PWD) and BAPPENAS as the focal points and with the
establishment of the Program Berbasis Pekerja Task Force and the link to the Padat Karya
Advisory Group for this project, it will be essential for the ILO technical assistance to have active
partners representing the broad range of stakeholders. Partners for this proposed programme
should be drawn from:

    Departments of technical line ministries and agencies involved in infrastructure and the
    construction sectors:
    (Agriculture, Science and Technology, Home Affairs, Housing and Human Settlements, Social
    Welfare and Development, Local Government, Public Works, Mines and Energy,
    Communication, Forestry)
    SPSI (Indonesian building and public works workers unions)
    The Employers Confederation of Indonesia
    National contractors organizations: AKI, GAPENSI16
    Indonesian Consulting Engineers, INKINDO17
    Professional civil engineering and architectural institutions. Key technical universities (Institute
    of Technology Bandung, University of Indonesia), technical education institutions
    Asian Development Bank (ADB)
    FAO and WFP
    World Bank (IBRD)

It is envisaged that the two Special Task Forces may also need to have much smaller working
groups which will need to be established as early as possible or formed as sub-groups of appropriate
existing employment task forces, to enable the ILO technical assistance team for the planned work
to be able to effectively operate especially in the initial phases and in the formulation of the full

                Program Berbasis Pekerja (PBP), Labour-based Program.
                GAPENSI = Gabungan Pelaksana Konstruksi Indonesia.
                INKINDO = Ikatan Nasional Konsultan Indonesia.

Following discussion with DPW on 8 September 1998, a Departmental Task Force has been
established and the expectations of the work of the Task Force and the ILO Technical Support have
been incorporated into the planned project outputs and activities.

Following discussions with BAPPENAS on 14 September 1998, it was confirmed that the ILO
should join the existing advisory group supporting the planning and coordinating role of
BAPPENAS in the Padat Karya programmes and especially for the new programme PK3 to be
formulated for 1999.

2. Development Objective:

The overall programme objective is optimal employment generation and poverty alleviation through
the realization of effective and efficient, well managed, labour-based and labour-intensive programmes
whereby an optimum number of persons are engaged by the public and the private sector under
fair and reasonable working conditions, in the design, implementation and maintenance of essential
construction and infrastructure works and wherever possible the programmes are institutionalized.

To achieve this objective a three phased approach is proposed:

    Phase 1 (Pre-Preparatory Assistance) would involve immediate labour-based technology
    awareness raising and some introductory technical training in labour-based and labour-
    intensive technology for infrastructure works programme, a preliminary training needs
    assessment and the finalization of a full Summary Project Outline document for the
    Preparatory Assistance Phase - Phase 2.

    Phase 2 (Preparatory Assistance) would involve the development and finalization of a project
    proposal in the ILO project document format that addresses all the emerging and anticipated
    technical, financial, training, monitoring and organizational aspects of an effective ILO
    Labour-based and labour-intensive technology advisory support and training Project.

    Phase 3 (Full Phase) of the programme would involve the regular and evolving operations of a
    core ILO Technical Advisory and Training Unit working together with the Special Task Forces
    on Employment in infrastructure works, and operating with short term inputs of specialists as

3. Immediate Objectives:

    Better understanding of the role and potential of labour-based and labour-intensive works
    programmes in the infrastructure and construction sectors (Phase 1, 2 and 3);
    Mainstream construction and infrastructure works locally planned, designed, implemented,
    monitored and maintained using where appropriate labour-based and labour-intensive
    methods in a cost and quality effective manner (Phase 2 and 3);
    Clearly defined and understood labour-based and labour-intensive technology strategies,
    policies and programmes of Government in the field of infrastructure works in place (Phase 3).

4. Outputs and Activities:

Phase 1 (Pre-Preparatory Assistance) - Output 1

Immediate awareness raising and basic technical training provided for government key decision
makers, contractors and consultants in the area of labour-based technology.

Phase 1 (Pre-Preparatory Assistance) - Activities for Output 1

    compile information on current labour-based, labour-intensive and equipment-based
    infrastructure programmes in Indonesia (local consultant)
    arrange for establishment of the Special Task Forces or link to an existing Employment Task
    Force (ASIST-Asia Pacific and ILO Area Office)
    arrange and conduct labour-based technology awareness raising seminar(s) for senior
    Government officials, consultants and contractors representing departments involved in
    infrastructure works programmes whether or not currently involving labour-intensive or
    labour-based methods (ASIST-Asia Pacific and local consultant)
    prepare report on results of introductory training a preliminary training needs assessment and
    task force arrangements (ASIST-Asia Pacific)

Phase 1 (Pre-Preparatory Assistance) - Output 2

A draft Summary Project Outline (SPROUT) for the Preparatory Assistance Phase (Phase 2) and
the donor and government support for the technical assistance mobilized.

Phase 1 (Pre-Preparatory Assistance) - Activities for Output 2

    prepare Terms of Reference for Phase 2 (ASIST-Asia Pacific)
    engage local/international consultant for support to ASIST-Asia Pacific on Summary Project
    Outline document finalization (ASIST-Asia Pacific)
    conduct presentation of a project outline to special donors meeting (ASIST-Asia Pacific & local
    discuss funding of Preparatory Assistance with all key donors and financial institutions
    (ASIST-Asia Pacific, COMBI)
    prepare Plan of Action for funding and implementation of Preparatory Assistance Programme
    (ASIST-Asia Pacific & local consultant)

Phase 2 (Preparatory Assistance) - Output 1

Strategies and approaches for the use of labour-based and labour-intensive public works
programmes developed and full project document completed.

Phase 2 (Preparatory Assistance) - Activities for Output 1

    working together with the Task Forces established for the labour-intensive and labour-based
    programmes, identify key project document outputs and activities needing technical advisory
    and training services through a review and assessment of:
         the National Development, the employment and technology policies on which it is based,
         the infrastructure programmes involved, the budget involved (both from Government,
         donors and development banks) and the progress currently being made against targets;
         the unemployment situation and trends based on regional and district data, checking
         labour-market information and systems for unemployment situation and trends;
         the infrastructure construction and maintenance needs and possibilities for using labour-
         based and labour-intensive methods without compromising on quality, technical
         standards or significantly on the cost of completed works;
         the need for policy and programme change and the isolation of particular sectoral works

                                               − 10 −
         which must continue to be carried out in full or in part using existing equipment-intensive
         design new ‘categories’ of works for labour-based, labour-intensive, equipment based
         programmes and ‘modified’ equipment-based programmes;
         general categories of ‘community-based’ and ‘public works’ and ‘productive’ and social’
         infrastructure components;
         available ‘ in country’ resources to be able to undertake an expanded programme (The
         World Bank intends to carry out a ‘Contractor’s capacity review’ in September 1998);
         how to achieve and maintain minimum technical standards and quality;
         the extent of re-orientation training needed for government technical and administrative
         staff to be able to cope with the new programmes;
         the need for policy and regulatory change including contract packaging, programme
         technical specification;
         the need for additional Government staff to be involved in the labour-based technology
         programme (labour-based methods are also more management-intensive than equipment-
         based methods) and the broad outline of staff to be trained;
         need for certification of Skilled Workers and ‘mandors’;18
         adequacy of existing technical specifications and contract documents;
         the extent to which consultants and contractors will also require advisory support;
         the need to define possible linkages to vocational training, cooperation with the
         universities and small and medium enterprise development as well as access to credit;
         the incorporation of basic labour standards, including wage levels for workers to be
         engaged for these works;
         current programme monitoring (timeliness, cost and quality) and need for improvement;
         the extent to which there will be regular dialogue with communities trade unions and
         employers organizations involved in the design and execution of the employment-intensive
         the extent to which previous efforts with labour-based programmes in the country have
         experienced problems and from which the proposed programme could learn

    organize a workshop to discuss with government officials concerned and other project
    counterparts, the draft strategies, approaches and programme framework proposed developed
    for Indonesia

    finalize preparatory assistance project document after endorsement of key stakeholders/donors.

Phase 2 (Preparatory Assistance) -Output 2

A comprehensive training and capacity building package for both labour-based and labour-
intensive programmes for government, contractors and consultants.

Phase 2 (Preparatory Assistance) - Activities for Output 2

    assess training needs
    identify the potential trainers
    review need for certification of Skilled workers and mandors
    organize workshop to clarify and to agree upon the approach, duration and content of the

                Mandors are labour hire entrepreneurs who receive fees for engaging local labour for various

                                                 − 11 −
complete preliminary basic technical training for government, contractors and consultants

                                        − 12 −
Phase 3 (Full Time Support) - Output 1

Key decision makers, communities, contractors, consultants, planners, engineers, administration
and finance personnel, technicians and supervisors who will be associated with the employment-
intensive programme trained in the planning, design and implementation of labour-based and
labour-intensive infrastructure programmes.

Phase 3 (Full Time Support) - Activities for Output 1

    prepare of full detailed training materials in English and Indonesian;
    arrange Training of Trainers courses for rapid introduction of labour-based technology into
    current works programmes through existing training set up for Government, contractors and
    arrange for institutionalization of training and incorporate a quality assurance control;
    liaise with ILO Specialists involved in Certification of Skilled Workers and ‘mandors’ needed
    for the expanded labour-based and labour-intensive programmes.

Phase 3 (Full Time Support) - Output 2

The technical line ministries involved in the Indonesia infrastructure works programmes able to
optimize the use of labour-based technology in their mainstream construction and infrastructure
works programmes, and to adjust their programme under changing socio and economic
circumstances .

Phase 3 (Full Time Support) - Activities for Output 2

   assess the extent to which existing construction and maintenance specifications and contract
   documentation will require to be modified and effect modification;
   identify sectors to be included, prepare detailed work-plans and budgets;
   recommend the most appropriate methods of maintaining technical quality, timeliness,
   community participation (where planned), and cost effectiveness of programmes and individual
   recommend systems for monitoring of all aspects of the programmes;
   recommend the most efficient day to day methods of managing labour-based programmes;
   undertake specific labour-based technology related rapid assessments as may be required for:
         assisting communities to plan and prioritize infrastructure and development needs;
         labour-based technology technical training and orientation needs;
        labour availability, suitability and costs analyzed by province and district;
        the rural-urban emphases of the programmes, categories of works and programme
        encouraging the existing equipment-based contractors to change;
        the length of employment contracts which can be offered so that the maximum number of
        person benefit from the programme;
        the method of selection of the workforce;
        payments and working conditions, occupational safety and health;
        the extent to which an opportunity for an integrated approach to employment generation
        exists in such areas as training for employment and small enterprise and credit assistance;
        research and development needs to help improve the programme;
        specific monitoring and evaluation needs;
   assess need for any ongoing specialist technical inputs in the field of labour-based and labour-
   intensive technology.

                                              − 13 −
Phase 3 (Full Time Support) - Output 3

Essential inputs and resources identified for the full implementation of the sectoral labour-based
and labour-intensive sub-programmes.

Phase 3 (Full Time Support) - Activities for Output 3

    assist the Task Forces in packaging scope and cost of on-going and proposed labour-based and
    labour-intensive programmes;
    present the packages to Government, major financial institutions and donors for funding and
    encourage bilateral support programme to give priority where technically feasible to the use of
    labour-based and labour-intensive methods.

                                              − 14 −
5.        Inputs:

5.1       Preparatory phase

ILO ASIST-Asia Pacific will provide direct inputs as needed and engage the support of a local
consultant. Assistance will also be sought from the Consulting Group for Indonesia and any local
costs associated with preliminary awareness raising training are to be met by the government, the
contractors and the engineering consultants concerned.

5.2 Preliminary Technical Assistance Budget Estimate for Phase 2 (Preparatory Assistance)

A combined local and international team of specialists are envisaged as necessary for this
preparatory phase.

The team leader should be a prominent senior local professional experience in economics, able to
develop and successfully promote the ‘vision’ of and direction for the envisaged programme. He
or she will be supported by a senior local and international development engineering specialist, a
local and international socio-economist and as well an international legal specialist who will
examine and recommend any legislative and regulatory changes needed to implement a wider
labour-based and labour-intensive programme. Detailed job descriptions will be prepared for all

 Item                 Description                  Quantity           Rate           Amount

      1   International Consultants
          Development Engineering                      4.0wm         60,000
          Specialist                                   1.0wm         12,500
          Socio-Economist                              1.0wm         12,500
          Legal Specialist                             4.0wm         60,000
          ILO ASIST-Asia Pacific Technical
          Local Consultants                            3.0wm          6,000
          Socio-Economist                              4.0wm          8,000
          Team Leader (Economic specialist)            4.0wm          8,000
          Development Engineering                                                    167,000

      2   In-country travel/expenses                                  17,000           17,000

      3   Printing of reports/training                                8,000             8,000

      4   Support costs                                              28,000            28,000

                          TOTAL                                                      220,000

5.3       Government support

                                              − 15 −
This is an area to be discussed and finalized with Government but already there are clear
indications that the bulk of ‘in-country’ training costs and arrangements will be provided by the
Government, and a separate budget will be prepared by Government.

6.        Proposed Timeframe

                                        Start                  Finish           Duration

         Phase 1                September 1998              October 1998        2 months

         Phase 2                 November 1998              February 1999       4 months

         Phase 3                      April 1999             April 2002        36 months

i:\mike\indone\prodoc.wpd (18/9/98)
i:\dsl\asist\prodoc.w61 (16/9/98)

                                                   − 16 −
                                                   ANNEX A

                      Major Public Works Programmes Proposed for 1998/99
                                        Financial Year

                                            Ministry/                            Labour
 No                   Title                 Agency                Budget          Costs       Per       Pers.
 .                                                                               Rp. Bill.   Days      Years
                                                                                  (40%)      Mill.3)   ‘0004)
                                                               US$     Rp.       of Total
                                                               Mill.   Bill.1)   Budget2)

          Government only                                       175     1,400       560           56     187
 1        Urban Construction              Manpower              37.5       300      120           12      40
 2        Rural Construction              Manpower              37.5       300      120           12      40
 3        Reforestation                   Forestry              62.5       500      200           20      67
 4        Rural Electrification           Mines/Energ           37.5       300      120           12      40

          With World Bank                                      1,160    9,280     3,712          371   1,237

 5        Kecamatan Development           Local Govt.           300     2,400       960           96     320
 6        Village Infrastructure          Local Govt.           300     2,400       960           96     320
 7        Crash Urban Programme           Public                 60        480      192           19      63
 8        Urban Low Income                Local Govt.           500     4,000     1,600          160     534

          With ADB                                               40        320      128           13      43

 9        Crash Urban Programme           Public                 40        320      128           13      43

          With OECF                                             500     4,000     1,600          160     533

 10       Village Infrastructure          Local Govt.           300     2,400       960           96     320
 11       School Renovation               Education             200     1,600       640           64     213

          TOTAL                                                1,875    15,00     6,000          600   2,000
Source:          1.           S. Dice, 1998, Employment Generation Programmes, presentation at Donor
                              Meeting on Social Safety Net Issues, World Bank, 5 June 1998.
                 2.           Task Force estimates

Note:            Assumptions:
                 1)       US$1 = Rp.8,000.-
                 2)       Construction costs include materials & equipment (60%) and labour (40%)
                          following Ministry of Public Works guidelines for labour-intensive projects.
                 3)       Labour cost per day = Rp.10,000.-
                 4)       Person Year = 300 days

                                                      − 17 −

To top