1. Support for Provincial & Kabupaten Road Maintenance Management Planning Workshop on Impact of funding options and output based maintenance

2. 2 Program and Workshop Activities Opening and Project Overview 2. Benefits of a strengthened road maintenance policy 1. Planning to achieve & NTB planning activities 3. Maintenance delivery capacity & options 5. Output-based funding of roads 4. Output-based road maintenance Way Forward Workshop Activity 3 Workshop Activity 2 Workshop Activity 1 Panel feedback

3. 3 Background Road maintenance under-resourced at provincial and kabupaten level EIRTP-1 PPBP reported need for improved data collection, greater transparency in planning Overall need for a tool and planning process, with LVRMS delivered RENSTRA 2010-2014 focus on support to cross ministry and jurisdictional synchronisation of planning priorities, resource allocation and performance management

4. 4 Activity Goal and Objectives Goal (Phases 1 and 2) Review current maintenance practices and funding at sub- national level Develop and demonstrate a systematic approach to PPB is selected provinces and kabupatens, as a future model Objectives of Phase 1 Collect detailed information on the road maintenance situation Detailed investigation of needs, funding and management practices to help design sector support Identify role of DGH and other agencies Confirm jurisdictions for piloting RM planning process

5. 5 Scope of Phase 1 Primary activities Selection of review agencies Funding needs and mechanisms, practices and capabilities Road maintenance delivery Procedures and tools Legal and regulatory framework, and procurement and support Completion activities Prepare Phase 2 Scope of Works Phase 1 Report

6. 6 Selection of review agencies provinces that had requested support from Indii – NTB and West Sulawesi kabupatens that expressed an interest in participating in the Phase 1 workshops provincial and kabupaten networks exhibiting both below and above average condition representation from eastern & western Indonesia a combination of networks representing a) sealed pavements; b) unsealed pavements time and budget constraints of the project advice provided by the DGH’s RRFU.

7. 7 Summary of Phase 1 Findings & Recommendations 1.Whilst budget constraints exist, funding needs for priority RM+PM activities approximately 75% of current roads allocations. 2.Overall needs for essential maintenance and removal of backlog 3 to 5 times roads budget. 3.Need to socialise the benefits of asset preservation to decision makers and technical cadres, and encourage sound technical justification. ‘Carrot and stick’ approach suggested using Hibah and multi year extended warranty contracts. Underpin by regulations and policy. 4.Implement a practical demonstration, preceded by draft policy, guidelines & preparation activities. 1.Whilst budget constraints exist, funding needs for priority RM+PM activities approximately 75% of current roads allocations. 2.Overall needs for essential maintenance and removal of backlog 3 to 5 times roads budget. 3.Need to socialise the benefits of asset preservation to decision makers and technical cadres, and encourage sound technical justification. ‘Carrot and stick’ approach suggested using Hibah and multi year extended warranty contracts. Underpin by regulations and policy. 4.Implement a practical demonstration, preceded by draft policy, guidelines & preparation activities.

8. 8 Phase 2: Scope of work 1 1.Prepare a draft road maintenance policy and accompanying guidelines 2.Draft maintenance planning procedures 3.Prepare and undertake initial work on pilot 4.Prepare future Scope of Work 1.1 Draft maintenance policy and guidelines 1.2 Draft recommendations on potential sources of funding, and local revenue collection potential 1.3 Document latest L&R framework applicable to output based grants 1.4 Socialise the draft policy to DGH and local government 1.1 Draft maintenance policy and guidelines 1.2 Draft recommendations on potential sources of funding, and local revenue collection potential 1.3 Document latest L&R framework applicable to output based grants 1.4 Socialise the draft policy to DGH and local government

9. 9 Phase 2: Scope of work 2 1.Prepare a draft road maintenance policy and accompanying guidelines 2.Draft maintenance planning procedures 3.Prepare and undertake initial work on pilot 4.Prepare future Scope of Work 3.1 Confirm detailed program with AIPD, DGH and LGs 3.2 Conduct network surveys in NTB 3.3 Data analysis & reporting 3.4 Conduct a workshop to demonstrate impact of funding levels and potential funding sources 3.5 Seek feedback from participants to develop funding levels for 2012 and beyond, under Phase 3 3.1 Confirm detailed program with AIPD, DGH and LGs 3.2 Conduct network surveys in NTB 3.3 Data analysis & reporting 3.4 Conduct a workshop to demonstrate impact of funding levels and potential funding sources 3.5 Seek feedback from participants to develop funding levels for 2012 and beyond, under Phase 3

10. 10 Phase 2: Scope of work 3 1.Prepare a draft road maintenance policy and accompanying guidelines 2.Draft maintenance planning procedures 3.Prepare and undertake initial work on pilot 4.Based on Phase 2 provide a work program for: 4.1 Immediate and Medium-term maintenance plans for NTB Provincial Roads; 4.2 Workshops and presentations for the maintenance plans; 4.3 Identification of locations for extended piloting 4.4 Development of a program of sustainable maintenance planning, programming and budgeting; 4.4 Funding sources and potential grant/hibah program to encourage sustainable maintenance practices 4.1 Immediate and Medium-term maintenance plans for NTB Provincial Roads; 4.2 Workshops and presentations for the maintenance plans; 4.3 Identification of locations for extended piloting 4.4 Development of a program of sustainable maintenance planning, programming and budgeting; 4.4 Funding sources and potential grant/hibah program to encourage sustainable maintenance practices

11. 11 Phase 2: Extension activities 1.Socio-economic foundation for asset preservation and maintenance 2.Review of the delivery capacity and options for using Swakelola (direct labour) and Private Contractors for routine maintenance 3.Integrating project outputs with DGH plans 4.The financial and institutional capacity of other provinces in relation to a Roads Hibah