IndII Support to DGH on National Roads –
- Road sector achievements and future program
DGH, 9 July 2012
2
IndII Support under Phase 1 - summary
• MTEF, budgeting and sector performance: – Budgeting process, strategy linkage to long-term plan, KPI, action plan
• Road network development and planning (Bipran-AECOM): – NR Masterplan, road corridor plans for E Sumatra & N Java
– BPJT capacity, institutional options and toll road program
• Road program delivery (Bintek-Cardno):
– Extending design life, life-cycle costs, axle load limits, performance-based contracts, project management, routine maintenance delivery
• Road sector policy issues: – South Africa visit: SANRAL MTEF, road management, business model
• Sub-national roads:
– Pilot on road management surveys, programming and routine maintenance
• Road safety:
– Blackspot program prepared, design manual produced
3
Challenges for the road sector - MTEF
• Infrastructure is a critical constraint to growth – low competitiveness ranking for road infrastructure provision
• Poor connectivity – Main corridor times 60-100 percent longer than neighbours
• Low cost effectiveness of road asset management – while condition is fairly good, deterioration is rapid
– high annual costs, equivalent to new road every 5 years
– fragmented contracts; weak construction industry.
• Changed resource environment – 6-fold increase in funding in 6 years, 95+% budget execution
– Value for money?? - average cost up, but output flat
• Weak linkages to national development plan – lacks targets on connectivity, efficiency and effectiveness
4
Phase 1 – Road Program implementation
• Strong direction & interaction with Bintek and Balai
• Revision to Pavement Design Guide:
• Long-life designs (low maintenance)
• Catalog approach for greater reliability (based on detailed analysis and life-cycle costs)
• Strong foundation and drainage for long life
• Overloading incorporated in design
• Flexible, rigid, reconstructed and recycled pavements
• Larger package size improves cost and quality
• Balai want automated road surveys for better data
• Options for management of routine maintenance
• Economic justification for raising legal axle load limit
5
Phase 1 – Road Network Development
Connectivity: • low connectivity compared to regional neighbours, but no target
• how do we measure performance and set targets?
• need to measure, report and forecast travel times
• link RENSTRA workplan to connectivity target and national long-term plan
0.0 1.0 2.0 3.0 4.0 5.0 6.0
Trans-Sumatra
Trans-Java
Kalimantan
Sulawesi
Bali-NTT
Papua-Maluku
12
34
56
Trip time hr/100 km*
Normalized Trip Times on Economic Corridor Arterial Roads – 2011 Estimates
Road Trip Time Nautical Add-on
Target Service level
1-1.5 hr/100 km
* Corridor distance shorter
than Arterial road distance
Source: IndII estimates from bus schedules and DGH data, April 2012
0.00 1.00 2.00 3.00
Trip time (hr/100 km)
Vietnam
Indonesia
China
Thailand
Malaysia
High land transport costs – low
connectivity of economic centres
6
3,690
1,430
2,780
3,160
987
1,905
- 2,000 4,000 6,000 8,000 10,000
Sumatra
Java
Kalimantan
Sulawesi
NTT
Maluku-Papua
Road Length, km
Total Length
Improved
length
4.5 m width53%
6 m width33%
7 m width14%
Width standard of national arterial roads, after DGH road development program 2010-14
Road development program -
Incremental widening to
minimum width standard
• Budget IDR 7 trillion/yr
• Covers 47% of network in 5 yr
• Increments to 4.5, 6 or 7 m width
But comes at high cost:
• No distance saving, little speed
improvement
• Investment repeated in 5-10 yrs
• High cost = 30-40% of full
construction for 20-yr life
• Defers achieving modern asset
• Compounds land issues
DGH Masterplan for Road Infrastructure 2010-14
7
Jalan yang belum terbangun digambarkan dengan garis putus-putus
Samarinda
Balikpapan
Banjarmasin
Palangkaraya
Pontianak
Nunukan
Enttikong Putusibau
Aruk
Tayan
Malinau
Tj. Selor
Ng Badau
Expressway >= 7 m 6 m 4.5 – 6 m Not Connected Sea Port
Road standard
Strategic Options
(1) Widen existing road
(2) Realign & rebuild – “road renewal”;
(3) Highway on future expressway
location
(4) Expressway in new location
Corridor plan evaluates options when
generating project pipeline and
investment profile for Economic
Corridor:
staged over 5, 10,
15 & 20 year periods
Corridor planning approach for long-term development
8
Corridor plan (trans-Sumatra example): detailed multi-year program & standard
9
Corridor plan – strip map presentation: Trans-Sumatra - Corridor Plan for Staged Development of Capacity in Parallel Facilities over long-term 20-yr period
ARTERIAL NATIONAL ROAD WIDTH
Width m 14
10
7
6
5
101 102 103 104 105 106 107 108 109 110 111 112 113
B Aceh Medan Pekanba Palembg Lampung
Length km 644 694 754 443 0
Total distance 2536 1892 1198 443
EXPRESSWAYDual C'way
Renstra period color code
Baseline
2010-2014
2015-2019
2020-2024
2025-2029
101 102 103 104 105 106 107 108 109 110 111 112 113
B Aceh Medan Pekanba Palembg Lampung
Length km 460 564 610 380 0
Distance km 2014 1554 990 380
2029 2024 2019 2019
2014 2024
2019
2010 Road W
idth
Lampung Medan B Aceh Pekanbaru
10
0
10
20
30
40
50
60
70
2010 2015 2020 2025 2030
TRA
VEL
TIM
E (h
r)
Connectivity: Travel Time from South to
North
B Aceh
Medan
Pekanb
Palem
Boukh
1,8 3 3 3 3 1,7 3,6 0 2,6
47,9
58,6
20,2
7
1,5
0
0
10
20
30
40
50
60
70
80
R1 R2 R3 R4 5-Y
ear
Sp
en
din
g e
stim
ate
(ID
R T
)
RENSTRA PERIOD
Financing Plan
Rd Presv Rd Widening Exwy GOI Exwy PrivSec
Corridor Plan Output - Trans-Sumatra Example: Linkage of Development Outcomes and Financing Plan
– Long-term 20-yr Period
11
Forecast of Forward Funding Requirements (demonstration only, from study data)
• Public funding of IDR 42-56 trillion/yr required 2015-29
• Only IDR 4 trillion/yr (16%) attractive to private sector
• Road development requires IDR 19 trillion/yr – in renewal
• Road preservation 20-30% less due to stronger roads
0
10
20
30
40
50
60
70
2005-09 2010-14 2015-19 2020-24 2025-29
An
nu
al F
un
din
g R
equ
irem
ent,
ID
R t
rilli
on
(2
01
1 p
rice
s)
Forecast Funding Requirements
Expressway - private funding
Expressway - public funding
Arterial road development
Road preservation
Road management
12
Priorities for Phase 2 support
Based on DGH priorities and Phase 1 findings, key areas include:
• Preparation of long-term national road master-plan:
– Connectivity in main economic corridors
– Expressway development, project pipeline and financing
– Modernisation of arterial road network
• Better road performance and lower annual costs
– extend life of road assets – expected and actual
• Better budget allocation and accountability
– Improved asset management and systems
• Strategic priorities for RENSTRA and funding requirement
• Staff performance, capability and accountability
13
Proposed activities for Phase 2 National roads
Policy
Planning
Program delivery
14
1. Advisory support on road sector policy - DG, Directors
Aims
• Improving sector and institutional performance
• Effective legal, regulatory & financing provisions
• Effectiveness of IndII support to DGH & road sector
Sub-activities:
• Dialog with GOI – MPW, MOF, Bappenas, CMEA, MoT
• Revisions to Road Law
• Expressway financing and issues
• Institutional structure and organizational performance
• Management and financing
• Sub-national road role, road preservation fund
• IndII road program effectiveness
15
2. Support on Planning Road Development - Bipran, BPJT
Aims:
• Plan road development to meet connectivity goals
• Strategy for modernising arterial road network
• Improve delivery & financing of expressway network
Main outputs:
• Long-term development strategy for road infrastructure
• 20-yr pipeline of investment projects in economic corridors
• Expressway masterplan and PPP-VGF demonstration
• Road renewal policy to modernise arterial road network
Performance measures:
• Connectivity (travel time) in main corridors
• Accessibility in eastern region (km/km2)
16
• Procedures for planning development of road network – Advisory support in Bipran: long-term planning of connectivity &
capacity in corridors, road renewal policy, medium-term pipeline, KPI for network, staff competencies and training
• Planning & capacity for developing expressway network – Update expressway master-plan, include staging
– BPJT advisory support, VGF financing mechanisms, capacity-building, review of packages, institutional options
• Preparation of corridor plans for Java and Sumatra – Refine corridor plans & extend to arterial corridors, prepare 2015-19
project pipeline, guidance on expressway packages
• Preparation of corridor plans & pipeline for east region – Survey, analyse and prepare plans for 4 main corridors in Kal, Sul,
Bali-NTT, M-Papua; 2015-19 pipeline; review needs for other NAR
• Preparation of medium- and long-term plans – Assist preparation of 2015-19 RENSTRA and 2015-24 long-term plan
2. Support on Planning Road Development: Sub-activities
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3. Improving performance of national road program implementation (Bintek, balai)
Aims:
• To extend asset life through improved design
• To build capacity for asset management in balai implementation offices
• To improve delivery and quality of construction and maintenance
Performance measures:
• Expected life and actual life of major works
• Contract package length
• Average preservation costs/km/yr
• Road and bridge condition
• Percentage of arterial road renewed
18
3. Improving the performance of national road program implementation (cont)
• Implementation of new design code – Longer life, better foundation & drainage, concrete
• Application of road renewal policy – Programming, design & implementation of road renewal along
arterial corridors coordinated with long-term network plan
• Development of improved asset management tools – Automated surveys, practical life-cycle programming tool with
strip-map report to replace IRMS, performance indicator reports
• Improved project management, skills & performance – Satker and PPK strengthened in contract packaging, procurement
and supervision
– Further use of performance-based and maintenance contracts
• Piloting of asset management & project management – 2 balai in 2013, then progressively to other balai 2014-15.
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3. Improving the performance of national road program implementation (cont)
• Improved public participation – Use of program reports in local consultation, public disclosure of
program and project information (perhaps through CoST)
• Improved performance and incentives for contractors – Support for action plan of Bp Konstruksi to improve certification
and performance evaluation, strengthen LPJK and accountability
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Interim activities – July-December 2012
• Bintek support: – Training of balai on new pavement design manual, calibration of
structural tests, preparation of drainage design manual, baseline survey of KPI
• DG, Bipran support: – Preparing & convening national symposium on road network
development and financing, with GOI & international participants
• Bipran support: – Baseline surveys of connectivity in main trunk routes; review
status of new toll road packages; preparation for main activity
• Detailed preparation and procurement of IndII DGH activities
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IndII-2 in DGH: Key concepts to note
• Expressway as class of public road, not toll road
• New public financing model (VGF) in PPP – Availability- or performance-based, quarterly payment, toll optional
• Long-term corridor plan selects road standard and timing of renewal
• Road renewal policy – Defers betterment until full realignment & construction planned
– Gains long life, safe, modern highway
• Asset management and programming function for preservation transferred to balai, with graphical tool
• Costs reduced by extending expected and actual life
• Independence between supervision and contractor
• Monitor outcomes – KPI on travel time, age, costs
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Timeline for Phase 2 on national roads
Month Activity
Jan-12 DGH workshop on future direction, Ongoing IndII-DGH discussions
Apr-12 IndII consultation on strategy with AusAID
Jul-12 - Activity proposals drafted
- Activities discussed with DGH
- Policy adviser (John Lee) arrives
Aug-12 - Activity designs finalised, procurement starts;
- Interim activities start
Oct-12 Symposium on road development planning and financing
Jan-13 Expected start of main Planning and Implementation activities
Jan-14 Mid-term review
Dec-14 Main activities end
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Conclusion
• The activities are designed to support DGH in delivering its program
• Core support will be provided through individual advisers working as partner to Directorate staff in DGH offices
• Consultant teams will be coordinated by the advisers and work closely with DGH staff in central and balai offices
• The teams will be most effective if working space can be made available in DGH offices
• Your input to the activity design is important – especially in the next two months Jul-Aug
Terima kasih
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4. Sub-national roads: Incentivising road management
Objectives Implementation and Outcomes
Strengthening central
and provincial
agencies on asset
management for sub-
national roads (SNR)
Improving participation
by private sector and
the public – to improve
communication and
agency performance
Implementation of pilot
output-based road
maintenance and
rehabilitation program
Effective delivery of
IndII support for sub-
national roads
Component 1: Preparation of Grant Design and Interim
Support for Critical Elements to expedite program,
(implemented second half of 2012)
Component 2: Consultants for project management and
implementation of grant program over 5 years, 2014-2018;
Creation of SNR project management unit in DGH
Establishment of transport forums
TA and training in planning and implementation of
maintenance & rehabilitation, and PBC
Incentives for increased budget allocation, for
contracting out works and performance-based contracts
Staged pilot, starting with one province (NTT) increasing
to up to other jurisdictions, based on demonstrated
capability and commitment.
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5. Improving Road Safety Blackspots and Program Management
Objectives Implementation and Outcomes
Building capability of
central and regional
offices for managing
blackspot improvement
programs
Implementation of
blackspot
improvements to meet
RENSTRA targets
Developing and
monitoring road safety
programs in national
police and sub-national
road agencies
Effective delivery of
IndII support for road
safety•
Component 1: Interim support: international road safety
specialist supporting RSEU 3 p-months to Jul-12;
Component 2. Implementation support by Consultant firm for
24 months to Jun-14 (2-stage);
Component 3. Program management support by International
specialist (50% of 30 months).
Strategic Plan for Road Safety in DGH
RSEU, DGH balai and local police trained in managing
road safety programs,
Support to achieve 150 blackspot improvements to
achieve RENSTRA objectives
Three fact-finding missions provide overseas training and
experience to 60 officials
Performance and results publicised and build GOI donor
& public support for road safety programs
Further road safety programs ready in DGH, INTP and
sub-national DGLT agencies.
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