In Indonesia, improving infrastructure is critical to stimulating inclusive growth. SMEC partnered with the Asian Development Bank and the Directorate General of Highways (DGH) to accelerate infrastructure delivery through comprehensive engineering and advisory services.
The Ministry of Public Works and Housing (MPWH) leads the Indonesian government’s effort to meet targets for infrastructure development. However, delivery of the MPWH’s infrastructure programs were constrained by complex land acquisition processes, procurement delays, and inadequate preparation.
The Asian Development Bank (ADB) provided a loan of USD143 million under Loan 3455-INO to help meet the infrastructure development objectives of MPWH’s Strategic Plan (2015-2019). The loan financed:
- ESP – Accelerating Infrastructure Delivery through better Engineering Services Project.
- ESP aimed to improve the quality and timeliness of the delivery of the sector’s public investment programs.
The project component under DGH included 10 consultancy packages focussed on preparation and design of projects, construction supervision and asset management. These activities were overseen by a DGH with guidance from SMEC who were appointed as Project Management Consultant (PMC). SMEC supported DGH in all management activities for efficient implementation and in accordance with ADB protocols.
The challenge was to ensure sufficient project management support to enable the implementation of an ambitious program of projects involving multiple contracts. The scope extended to implementing comprehensive management systems and processes involved in project preparation and quality review for 84 infrastructure projects. The $143m loan was effective on 21 December 2016 but the implementation period, originally 3.5 years, was extended to 6.5 years due to delays caused by the global pandemic.
The SMEC team comprised an International Team Leader and three International Specialists supported by fifteen national specialists. The team brough expertise in engineering, program management, financial management, land acquisition, social and environmental safeguards, and economics. Scope items included:
- Public investment management
- Project identification and preparation
- Project management, procurement, and contract management
- Design and value engineering
- Road safety and social safeguards strategy and monitoring
- Program monitoring and evaluation in line with ADB protocols
The SMEC PMC team was embedded into the DGH team, enabling staff to learn new tools and systems that would maximise efficiency and effectiveness.
In order to deliver the governments development objectives DGH must be able to prepare projects in an appropriate state of readiness according to planned schedules. The prioritised projects should be selected using appropriate tools to maximise efficiency and effectiveness.
Value added outcomes:
- The DGH public investment management system was reviewed, and a better understanding given to DGH. Subsequently a plan was developed to improve key areas.
- Technical audit highlighted systemic issues which were then addressed by changes to practice and documentation.
- Value Engineering (“VE”) was introduced, and training was provided to DGH. DGH concluded that Value Engineering studies were an effective tool in maximising efficiency and proceeded to create a formal guideline to mainstream VE into their standard procedures.
- Advances in technology for land surveying meant that DGH agreed to the use of LIDAR for topographic surveying and mapping. This enabled rapid and accurate surveying of large areas of land irrespective of terrain, vegetation, or accessibility. LIDAR surveying was completed using aeroplanes and drones.
- SMEC supported the development of a mobile application called JAKI to monitor road conditions and facilitate road user (public) comments. This proved to be very successful and illustrated how up-to-date technology can be applied in DGH work.
The engineering services project supported the attainment of the governments infrastructure objectives as outlined in the Ministry of Public Works and Housing Strategic Development Plan, 2020-2024. A key outcome was the enhanced capacity within the Directorate General of Highways to efficiently design and implement public investment programs.
The PMC team helped to ensure that infrastructure packages met readiness criteria for implementation, in accordance with programmed work and budget. An action plan was successfully implemented to improve the public investment management systems, enhancing the efficiency of budget allocation and disbursement.
Standards of design and documentation were elevated as well as the capability to review the quality of construction.
Accelerating Infrastructure Delivery project, Indonesia
Dec 2017 – Apr 2023
Directorate General of Highways, Ministry of Public Works and Housing
Asian Development Bank – Loan 3455-INO
Ministry of Public Works and Housing,
Bappenas, Ministry of Finance