Eastern Indonesia National Roads Improvement Project (EINRIP)

Estimated budget	A$328 million (A$300 million loan, A$28 million grants)
Commenced	Project Preparation: Commenced March 2006 Road Construction: Commencing end 2007
Scheduled completion	2010
Counterpart Agencies	Ministry of Public Works
Main Locations	Eastern Indonesia
Managing Contractor	URS Corporation

Background

The quality of Indonesia's national road network is a critical determinant of growth. Decentralisation and the creation of new provinces in Indonesia have led to the expansion of the national road network by about 8,000 km. Many of these roads are in poor condition and impede regional growth opportunities.

The Indonesian Government wants to continue to strengthen the national road system in Indonesia, and a proposed loan from Australia will support a program of national road and bridge improvement works throughout Eastern Indonesia.

Description

In the third AIPRD Joint Ministerial Statement released on December 2005, Ministers agreed to support the Eastern Indonesia National Roads Improvement Project (EINRIP) through the allocation of up to A$300 million in AIPRD loans. An additional A$28 million in AusAID grants has been allocated to fund project preparation, design and project-related technical assistance and implementation support.

A strong national road network is essential to regional social and economic development. It will ensure adequate quality and cost of access between all regional centres, national level public services, markets, and terminals. Upgrading national roads will improve these links to an acceptable standard and help ensure that the national road network provides acceptable standards of service and accessibility, capable of supporting local and regional economic development.

Approximately 4,300 kilometres of roads in Eastern Indonesia have recently been reclassified as national roads. EINRIP is expected to involve the betterment and rehabilitation of around 1,500 kilometres of roads and 4.5 kilometres of essential bridges. Criteria for the selection of roads will include the economic rate of return yielded by the improvements made.

Achievements/outcomes

Available national road data has been analysed, indicating significant opportunities and needs for road improvement throughout the whole of Eastern Indonesia.
A project preparation consultant (PPC) is undertaking feasibility assessments of roads for EINRIP and engineering design. The PPC and other associated tasks are being funded from AIPRD grants.
Field review of potential road betterment sites is largely complete, with final engineering design now under way. It is anticipated that betterment works under EINRIP will commence at end-2007.

This page was last updated on 22 May 2007