Governance in Directorate General Highways: IndII Findings and Proposals

1. Governance in Directorate General Highways: IndII Findings and Proposals William D Paterson IndII Wrap-up Conference 14 June 2011

2. Outline of Support to Road Sector under IndII DGH Governance: • Budget Policy and Reform – MTEF-PBB • Road Network Development • Project Delivery and Implementation • Management Systems Road Safety Program Sub-national Roads Management

3. Road Sector: Economic Challenges High Land Transport Costs – Low Connectivity of Economic Centres • Low Competitiveness in Infrastructure, Roads (GCI 2011) Backlog in Expressway Development

4. Issue 1: Medium-Term Expenditure Framework and Performance-based Budgeting Review of performance, needs, and planning Recommendations on applying MTEF-PBB • DGH achieves significant work and budget execution • but network obsolete, condition static, impacts uneven across regions, high demand to improve substandard roads • Funding tripled • but output flat, treatment increased and costs tripled • Preservation adequately funded if policies optimal • butdevelopment is under-funded • Technical policies and practices make inefficient use of budget: • Planning of service levels and capacity • Design, procurement and implementation of works

5. Policy Issue 2: Connectivity and Road Network Planning

6. Issue 2–Connectivity and Planning - Recommendations Increase Budget Allocation for Network Development – prioritise large 2012-14 increments (IDR 10T) to road development Expressways • Accelerate land acquisition using additional budget • Expand BPJT capacity - to accelerate processing of projects • Provide budget for Viability Gap Funding to attract PPP investors • Drive expressway plan by connectivity and mobility requirements Trunk Routes • Use corridor studies to determine optimal 20-25 year standard for arterial roads and build into pipeline of projects • Modernise assets through road renewal program, updating structural and functional aspects with road widening • In low traffic regions adopt modern alignment for baseline plan

7. Issue 2:Improving Connectivity – Corridor Plan Example

8. TRANS KALIMANTAN NATIONAL ROAD PROGRAM Nunukan Nunukan Simanggaris Simanggaris KONDISI SAAT INI TARGET 2010 - 2014 Malinau Malinau Tj. Selor Tj. Selor Aruk Aruk Ng Badau Ng Badau Enttikong Enttikong Putusibau Putusibau Tayan Tayan Pontianak Pontianak Samarinda Samarinda Jalan yang belum terbangun digambarkan dengan garis putus-putus Jalan yang belum terbangun digambarkan dengan garis putus-putus Balikpapan Balikpapan Policy Issue – should 6m width std be skipped? (1) Widen to full 7m std for NR Arterial; or (2) Build new 7 m road on future highway alignment. Width Palangkaraya Palangkaraya >= 14 m >= 7 m 6 m 4.5 – 6 m Not Connected Sea Port Banjarmasin Banjarmasin

9. Policy Issue 3: Project Delivery and Implementation

10. Issue 3 – Results on Project Implementation Strong direction and interaction with DGH 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 procurement package size improves cost and quality Balai want to automate road condition surveys for better data Options for improving management of routine maintenance Economic justification for raising legal axle load limit

11. Options Looking Forward:(1) Planning for Road Network Development Help Bipran to: Build a comprehensive process for planning road network development, with expenditure forecasts and pipeline of projects • covering strategic roads, arterial roads, trunk routes, and expressways (incremental widening would be discontinued) Prepare long-range capacity expansion profiles for the six economic corridors, including pipeline of projects and financing plan Develop an optimal 20-year strategy and performance indicators for development of the expressway and arterial road networks Assist BPJT to: Build capacity for processing the enlarged expressway development program; and Prepare transactions requiring viability gap funding

12. Options Looking Forward:(2) Asset Management & Project Implementation Help Bintek to: Authorise and incorporate the new pavement design guide into practice, provide related training and monitoring Prepare road renewal strategies for heavily trafficked corridors in Balai 3, 4 and 5 including heavy-duty pavements Develop tools and indicators to assist the asset management and monitoring of arterial roads, including: actual and expected age of pavement, automated road surveys, etc. Assist 1 to 3 Balais to: Conducting automated road surveys, related quality assurance and data management, and preparation of the 3-year rolling road preservation programs for the budget years 2013, 14 and 15. Apply new project design methods, contract preparation and supervision in selected heavy traffic corridors.

13. Options Looking Forward:Approach for Support to DGH and MPW Facilitate delivery of DGH MTEF program: • Working with Directorates • Demonstrating applications and reforms through outputs • Supporting MTEF budget preparations in 2012, 2013 & 2014 Progressive engagement: • Hold-points for review after initial stage and annual stages Governance: • Building reliable data & information database for shared use • Facilitating deployment of new strategic KPI for travel time, asset age and activity costs • Launching public disclosure – possibly under CoST Initiative • Support MPW administrative reform measures

14. IndII Support to DGH Terimakasih