Eastern Indonesia National Roads Improvement Project (EINRIP)

AIPRD Funding	A$300 million loan A$28 million grants
Commenced	Project Preparation: March 2006 – March 2009 Road Construction: Commenced February 2009
Scheduled completion	June 2011
Counterpart Agencies	Directorate General of Highways, Ministry of Public Works
Main Locations	Eastern Indonesia

Background

The quality of Indonesia's national road network is a critical determinant of growth. Much of the expanding national road network is in poor condition and impedes regional growth opportunities. A strong national road network with acceptable standards of service and accessibility is essential to regional social and economic development.

A loan from Australia is supporting the Indonesian Government's continuing efforts to strengthen the national road system in Indonesia, through 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 A$300 million in AIPRD loans. An additional A$28 million in AusAID grants was allocated to fund project preparation, design and project-related technical assistance and implementation support.

The program is an important part of the Australia Indonesia Partnership (AIP) and, in line with the Paris Accord, is being delivered entirely through the Government of Indonesia's own systems.

EINRIP comprises 24 major road and bridge projects in nine provinces. This includes the betterment and rehabilitation of around 500 kilometres of roads and over 1,000m of essential bridges. Selection criteria for projects included the economic rate of return yielded by the improvements made. The project includes comprehensive Environmental and Social Safeguards (ESS) that ensure careful management of social and environmental impacts. An Anti Corruption Action Plan (ACAP) is in place to assist good governance and improved procurement practices.

The loan also funds technical assistance to DGH through international consultants to enhance project management, procurement and construction supervision capabilities.

Achievements/outcomes

During 2006-09 consultants completed the project preparation including studies, survey, detailed engineering design, safety audits, preparation of bid documents and a Project Management Manual.

By mid 2009, 8 construction contracts have been tendered and it is expected that over 12 contracts will be underway by end of 2009.