DESCRIPTION

Recent consultations between the Government of Indonesia and the Asian Development Bank (ADB) have highlighted the importance of continued support for infrastructure development to sustain inclusive growth. The government's development strategy includes both the urban areas of Java Island, and rural areas and islands in eastern Indonesia, where infrastructure development is very limited. The technical assistance cluster (TAC) will support the government's efforts to meet its development goals by improving the investment climate, associated policies and institutional capacity, for infrastructure development. The TAC will support identified projects by enhancing project preparedness and developing local capacity for improved project implementation.

The expected impact will be increased infrastructure investments in the energy, transport, WSS, and urban services sectors to sustain economic growth and poverty reduction. The TAC outcome will be improved project readiness and development of a set of bankable projects in the energy, transport, WSS, and urban services sectors.

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY

There are infrastructure bottlenecks across most sectors, but these are particularly significant in the energy, transport, water supply and sanitation (WSS), and urban services sectors.A review of ADB's prior operations and other evaluation studies in the infrastructure sectors in Indonesia point to several persistent challenges: (i) the poor capacity of implementing agencies to design, procure and implement projects; (ii) long delays in land acquisition and permit processing; (iii) an inadequate focus on environmental and social safeguards; and (iv) inadequate private sector participation. The TAC will address these challenges through an integrated, comprehensive approach that focuses on projects and their enabling environment, and complements project preparatory work through capacity strengthening of implementing agencies, bolstering of safeguards-related measures, and relevant analytical work

IMPACT

Infrastructure investments in the energy, transport, and WSS and urban services sectors increased

CONSULTING SERVICES

Consultants will be engaged by ADB in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). Taking into account the design features of the TA, the TA will require a mix of national and international consultants with various expertises and skills, as well as a mix of recruitment approaches involving both individuals and firms. Firms and individuals will be contracted through a mix of quality-based selection, single source selection, and quality-and cost-based selection using full and simplified technical proposals as may be most appropriate for the circumstances of each assignment. Lump sum contracts for specific outputs may also be used.

The implementation of TA activities will require the services of international consultants (450 person-months, pm) and national consultants (510 pm) totaling (960 pm). This includes a requirement of 810 pm (380 pm international and 430 pm national consultants) for the component TAs. The IMU will require a total of 110 pm of consultant services, 50 pm international and 60 pm national. A provision has been made for 40 pm of consultant services (20 pm international and 20 pm national) to respond to immediate requirements for specific advisory services to the EAs and IAs.

PROCUREMENT

Procurement under the TAC and component TAs will be done in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). Equipment for the component TAs will be procured by the TA consultants and turned over to the government upon completion of the TA. All disbursements under the TA will be done in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). AusAID will disburse the funds in accordance with the project requirements as communicated by ADB in consultation with the government.

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main