1. Agenda and Presentations 25 November 2009 Agenda and Presentations IndII Board Meeting

2. Agenda 10.00 amArrivalRefreshments 10.15 amWelcome and Opening Comments Minutes of the Previous Meeting Pak Dedy S. Priatna PhD, Deputy Minister for Infrastructure Affairs BAPPENAS Jacqui De Lacy, Minister-Counsellor, AusAID, Australian Embassy 10.30 amPresentation on IndII progress and Presentation of Facility Review and Planning Document (FRPD) Pak Bastary Pandji Indra, Bappenas, David Ray, IndII 11.00 amUpdate on Water Supply and Sanitation Initiative (WSI) Ben Power, AusAID 11.15 amDiscussion of Infrastructure Priorities of New National Government Board Members 11.45 amClosing CommentsPak Dedy S. Priatna PhD, Deputy Minister for Infrastructure Affairs BAPPENAS Jacqui De Lacy, Minister-Counsellor, AusAID, Australian Embassy Jakarta

3. Technical Team Report

4. Summary points from last Board Meeting (May 26 th ) General improvement in management noted Acknowledged more rapid development of new activities, but spend is still too low. Further acceleration is required – Approved new and more streamlined activity review process Acknowledged better and more open working relationship between Technical Team and IndII – More frequent TT meetings /communications Too focussed on national level activities, more required at the sub-national level.

5. Review of Progress Strong progress reflected in 2 ways: 1.Rapid development of new activities Sharp increase in TT approved budgets and actual spend ‘Progressive engagement’ – focus now on small scoping activities leading to larger, better designed programs for next work-plan period 2.Development and enhancement of institutional relationships

6. Activity Development Sharp increase in TT and AusAID commitments since April As of end January – TT commitments: $A 18.2 million – AusAID approvals: $ A 15.0 million Average monthly expenditure: – Feb to Aug 2009: $142,300 – Sept 2009 to Jan 2010: $835,700

13. Activity Development...cont’d Spending low on a burn rate basis Rapid growth in recent months Opportunities for large increases in spending in coming work-plan periods – ‘Progressive engagement’

14. Activity Development...cont’d ‘Progressive engagement’ – IndII has pursued many small scoping (stage 1) activities using external experts. Use of more specialised skills/expertise allows better designed/planned follow-on activities Allows more opportunities for counterpart input, ensures program is demand driven Management flexibility. Stage 1 ‘stop/go’ point – Lays the foundation for larger activities Table 2: A$ 3 mill in current stage 1 activities potentially leads to $A 11-26 million in follow on activities

15. Institutional Relationships Most notable is DGHS (Cipta Karya) – Key partner in 20 PDAM, WSI (Hibah, PAMSIMAS, Banjarmasin sewerage, Wastewater masterplans), Umbullan Springs, amongst others Also strong relationship developing with DGH (Bina Marga) – New activities in MTEF & Performance Budgeting, Procurement, Audit – Commitment to develop Road safety unit with IndII’s assistance

16. Institutional Relationships..cont’d Relationship with DGPT continues to strengthen – IndII Project manager embedded – New requests to assist with Telcom law New programs assisting weaker agencies – Rail and port national masterplans – Key facilitation role played by the TT – New programs to assist weak local governments (Papua, W.Papua, NTT, NTB)

17. New areas for further development

18. Watsan Program

19. Transport Program

20. Policy and Investment

21. Recommendations for Board Endorse forward strategy and workplan Endorse changes in facility structure Continued development and streamlining of systems and procedures Redefinition of IEG to include TA for project preparation (IPM activities) Focus IEG grants on wastewater and solid waste