DRAFT PROJECT PROPOSAL OUTLINE (18th September 1998)

Transcription

1 DRAFT PROJECT PROPOSAL OUTLINE (18th September 1998) Project Number: Project Title: Country Coverage: Project Site: Executing Agency: Implementing agencies: INS/.../... Advisory Support and Training for Wider and Improved Use of Labourbased Technology (LBT) in Infrastructure Programmes in Indonesia Indonesia Jakarta International Labour Organisation (ILO) Department of Public Works and BAPPENAS (National Development Planning Agency) Co-operating Agency: Focal Point 1: Department of Public Works. Program Berbasis Pekerja (PBP) Task Force Focal Point 2: BAPPENAS Padat Karya Advisory Group Donor Agencies: To be determined Starting Date Phase I: Immediate Labour-based Technology and Duration: Basic Orientation and Programme Formulation September 1998 (2 months) Phase II: Phase III: Preparatory Assistance November 1998 (4 months) Full time support April 1999 (36 months) Donor Contribution: Phase I: USD 30,000 ILO ASIST-Asia Pacific Phase II: USD 220,000 Phase III: USD 1,100,000 Total: USD 1,350,000 Government Contribution: Phase I: Rp.--- Phase II: Rp.--- Phase III: Rp Total Rp.--- (in kind) ============

2 1. Background and Justification: 1.1 Socio-economic situation in Indonesia According to the World Bank 1, Indonesia had 17% of its population living under US$1 per day in 1993 which then compared with 27.7% for East Asia and in 1995 this figure was 11.4% in Indonesia when the East Asia region had improved to only 21.2%. In 1995 there were 21.9 million in Indonesia who were living in poverty and the exchange rate of the Rupiah was Rp.2,200 to US$1.00. As a result of the Asian financial crisis there has been a sudden and dramatic reversal of what had been a steadily improving level of poverty in Indonesia and currently there are estimates of up to 40% of the 204 million population or about 80 million living in poverty. There is now a substantial increase in demand for employment creation and adequate social protection for workers through programmes aimed at poverty alleviation, and at enhancing productivity. According to the Department of Manpower 2 there are currently as many as 20 million job seekers in Indonesia. During September 1998 the cost of unskilled labour covered under the Padat Karya 3 programme is Rp.7,500 or US$0.70 per work day, slightly above the minimum wage of workers in the area of Jakarta. The actual exchange rate of the Rupiah during August 1998 has been in the order of US$1=Rp.12,500. The low cost of labour and the very large numbers of unemployed job seekers make the wider and improved use of labour in the construction and infrastructure sectors via labour-based technology an essential strategy for addressing the current crisis. 1.2 Prior and ongoing interventions in labour-intensive public works programmes The ILO has had some important and relevant recent experience in labour-based programmes in Indonesia and there is ongoing support to the Institute of Technology Bandung (ITB) in the general field of labourbased technology and more specifically in development planning. There is therefore an important base on which ILO ASIST-Asia Pacific can build a new and expanded programme of technical support in labourbased technology. The ILO/World Bank-financed labour-based district road project with the Directorate General, Bina Marga, 4 from 1993 to 1995 upgraded labour-based methods already in use in Indonesia. Focusing on four pilot districts in two provinces, the project developed and introduced improved The World Bank Group Regional Brief for East Asia, September ILO mission meeting with Mr Wiradi, Director of Self-Employment and Manpower Expansion, Directorate General of Manpower Placement, 12 August Padat Karya = Labour-intensive. Bina Marga = Roads and Highways Division of the Department of Public Works. 2

3 techniques, supervision and organization for labour-based construction/improvement and maintenance of local roads. A substantial part of the technical assistance inputs was undertaken with a local consultant. The final phase of this project included a component of small contractor training for labour-based road maintenance. The major project achievements were: the general acceptance at a technical level of the viability of labour-based methods both among the road authorities and among contractors, the demonstration of the potential benefits and savings to be accrued through the use of labour-based technology, an understanding of the capacity of locally recruited (rural) workers, in that with proper hand tools and support equipment, supervision and motivation, labour productivity levels of international standards can be achieved in Indonesia. While this project can undoubtedly be described as a technical success, the Government of Indonesia, then experiencing rapid economic growth and working very closely with contractors using equipment based methods was not inclined to change its then equipment based programme implementation methods or policy. At this time the exchange rate of the Rupiah was 2,220 to US$1 and even with this exchange rate there was economic justification for labour-based methods. A report prepared by the project "A geographical focus for labour-based methods in Indonesia" will be a useful reference document for the work of ASIST-Asia Pacific. In 1996 the ILO commissioned a study by a local consultant for the Analysis of impact of infrastructure development programmes and employment creation" and there is currently a programme of ILO collaboration established with the Institute of Technology in Bandung (ITB) in respect of the application of IRAP (Integrated Rural Accessibility Planning) or development planning procedures and there is an interest in the modification of the ITB undergraduate engineering courses to incorporate labour-based technology modules. An ILO task force in employment undertook a Support Services for Policy & Programme Development (SPPD) mission to Indonesia in early 1998 and has prepared a study on Employment Challenges as a result of the Indonesian Economic Crisis. This ILO report 5 concludes that labourintensive public works programmes should be promoted as a response to the current crisis and emphasises that Public works programmes should focus on expanding existing programmes designed to use labour to build and rehabilitate infrastructure rather than starting new ones. 1.3 Government of Indonesia s Public Works Programmes The Government of Indonesia is currently in the process of implementing large public work programmes, budgetted as nearly USD2.0 billion which should be able to generate employment for up to 2 million persons provided that labour-based techniques are utilized where feasible. The Government also has a plethora of labour-intensive (Padat Karya) Programs in various sectors. The Padat Karya s programmes are based with the Department of Public Works, Manpower, Forestry, Mines/Energy, Local Government and Education and include: INPRES 6 Programme (Kabupaten and Desa 7 ), IDT Programme (INPRES Desa Tertinggal 8 ), Kampung 9 Improvement Employment Challenges of the Indonesian Economic Crisis, ILO June Presidential Instruction District and Village Presidential Instruction on Neglected Villages Residential area for lower social-economic groups in a town or city 3

4 Programme (urban communities), the Padat Karya Gaya Baru 10 Programme for the rural areas and the INPRES SD/MI 11 programme for education infrastructure renovation. All of these programmes appear to have been hurriedly put together as an instant response to addressing unemployment, with short-term job opportunities. Most of these programmes are struggling and in need of both technical, planning and management advisory support. A description of these programmes prepared by the World Bank, a summary sheet prepared by the ILO and a recent weekly progress report on these projects prepared by BAPPENAS, are included in Annex A. 1.4 Project strategy Employment generation and poverty alleviation are central to the ILO s core mandate alongside the promotion of human rights and workers protection. The ILO s Country Objectives for Indonesia are now being re-formulated in close partnership with the Government, Workers and Employers organisations. Employment promotion and poverty alleviation has been given high priority. The Employment-Intensive Programmes (EIP) of the ILO have been actively promoted globally by the ILO as a powerful instrument for employment generation, through labour-based investment policies and practices for infrastructure planning, development and maintenance, particularly over the past two decades through the ILO s central, regional and area offices. Now, strengthening this programme is the ILO ASIST-Asia Pacific project based in the ILO Regional Office for Asia and the Pacific (ROAP) in Bangkok. ASIST (Advisory Support, Information Services and Training) specializes in the whole spectrum labour-based technology (LBT) from development planning to development engineering and the application of labour-based technology in national employment intensive programmes involving infrastructure works. It is planned that ASIST-Asia Pacific will manage this technical assistance proposal Labour-intensive and labour-based programmes to be supported During an ILO ASIST-Asia Pacific missions to Indonesia in August and September 1998, discussions has been held with the Government, the World Bank, the Asian Development Bank and UNDP on the possible role of ILO support to the Government of Indonesia s programme of massive public investment, designed with the intention of using both labour-intensive (labour and handtools only) and labour-based (labour supported where necessary with equipment) methods in public works programmes New style labour-intensive, a Government s programme that has been implemented recently as one of the solutions for poverty alleviation. Presidential Instruction on Elementary School and Moslem Education at the Elementary Level (MI - Madrasah Ibtidayah = Moslem education at the elementary level) 4

5 These programmes include those covered by existing and planned government appropriations as well as the World Bank, OECF and Asian Development Bank supported programmes for both the rural and urban infrastructure sectors. Works programmes include the construction, rehabilitation and maintenance of roads, irrigation, reafforestation, schools and housing and human settlements. These programmes which aim to create millions of part-time jobs were discussed with specialists in the Department of Manpower, Department of Public Works (DPW) and BAPPENAS. 12 (Refer also to ANNEX A) Advisory support and training focus The area identified for immediate ILO assistance are in the area of awareness training for government personnel, contractors and consultants concerning labour-based and labour-intensive technology, and basic technical orientation for technical personnel of both government and the contractors and workers and supervisors involved in these programmes. The DPW has requested the earliest possible training and advisory support assistance for the labour-based and labourintensive programmes and has already established a special Program Berbasis Pekerja Task Force for this purpose as a result of consultations with ASIST-Asia Pacific. In the medium and longer term the Department of Public Works would like to see full time ILO technical support to the Department particularly in the area of training as well as in the area of advisory services for the design, implementation and monitoring of their programmes. The programmes of the Department of Public Works are potentially those with the major role to play in medium and longer employment generation as they are able to be partially and appropriately transformed into programmes using improved fully engineered labour-based methods and on a much broader scale. Three categories of work packaging are foreseen (i) Equipment-based but with some contract elements or activities to be re-specified for labour, (ii) Labour-based, equipment supported works programmes which will be substantially expanded and (iii) Labour-intensive (labour and hand tools only). Whereas the Department of Public Works sets out to achieve the same quality standards with labour-based methods as is possible with equipment and without any increase in project costs, the Department of Manpower and other Departments have crash programmes of labour-intensive activities where the workers do not have supporting equipment, use only picks and shovels, have little if any technical supervision and have little concern for labour productivity or project costeffective. Again, even here with the limited scope of these short-term labour-intensive welfare programmes, the ILO can assist in recommending which kind of activities should be attempted, setting out basic works procedures and recommending reasonable levels of labour productivity and cost control. 12 See ILO ASIST-Asia Pacific Indonesia mission reports, August and September

6 Both BAPPENAS and the Department of Manpower have also indicated a need for ILO technical support for their programmes. The Minister of Peoples Welfare and Poverty Alleviation, responsible for the coordination of certain labour-intensive infrastructure crash programmes including those of the Ministry of Manpower has already sought ILO assistance to mount a national awareness campaign on labour intensive projects as this programme is running very slowly with only 5% delivery on a Rp. 600 billion programme. 13 (Refer also to ANNEX A) Choosing appropriate technology and the right concepts It will be important that any new labour-based programmes are wherever possible conceived as mainstream line ministry programmes and not seen only as just some sort of emergency, temporary-relief effort where the line ministries concerned do not need to seriously consider the introduction of fundamental change, where it is feasible and appropriate to do work in a more employment-intensive or labour-based way. It is also important that the project cycle is taken into consideration with appropriate community or regional planning and operational and maintenance issues pre-conceived and pre-arranged. As well the various programme menus should clearly distinguish between public and community work and between productive and social infrastructure. This paradigm shift in approach is part of the fundamental changes involving technology choice and the greater use of available low cost labour on a more permanent and therefore sustainable basis which have been introduced into the ILO s labour-based programmes globally in the past four years. This long term goal does not however exclude the establishment of short term, labourintensive emergency responses, should they be necessary, however these should be structured in such a way so as to enable their eventual conversion to more longer term, meaningful and sustainable programmes Monitoring of programmes Both DPW and BAPPENAS have called on the ILO to pay particular attention to assisting in establishing an improved monitoring system that works efficiently in a country as large and complex as Indonesia is. Both agencies acknowledge that the current monitoring arrangements are inadequate and that comprehensive monitoring will bring with it the opportunities for improved quality, cost control and accountability Accepting the scope and limitations of the programme It is stressed here that the labour-based programmes should not be seen as a panacea for the current economic crisis as they will attract mainly unskilled unemployed workers and so far in Indonesia mainly unskilled male workers have been involved in these programmes. For these programmes to be really effective there must be a recognition that they are also managementintensive and that the training of thousands of managers and supervisors and communities will require considerable lead time. Nevertheless the labour-based programmes can and do play an important role in addressing unemployment if they are tackled in a well planned and coordinated manner and in a genuine spirit of cooperation and striving for their success in the national interest Fair working conditions for the workforce 13 Meeting with Director a.i. of ILO Jakarta office, August

7 Fundamental to the ILO technical advisory and training support to these programmes will be the promotion of fair working conditions for the workers to be involved in these expanded programmes. To this end the ILO has recently produced a timely comprehensive guide 14 for employment-intensive programmes and this will be the basis of such promotion. With the special tripartite (Government, Employers and Workers) structure of the ILO this programme of technical support will pay particular attention to regular consultation with the three ILO social partners and encourage their active participation in Task Forces of the programme. 1.5 Target groups The target groups of this advisory and training project are primarily the government decision makers and senior and middle management technical and professional personnel involved in the infrastructure sectors. In addition to the government personnel, counterpart technical and professional personnel in the contacting and consulting sectors will also be included as well as those involved in technical education and professional development. Also important will be the construction and public works workers union, the UN agencies involved in the infrastructure sector and the major financial institutions supporting infrastructure programmes. The indirect beneficiaries of this advisory and training project will be the hundreds of thousands of workers to be engaged in the labour-based and labour-intensive programmes, who will benefit from being engaged in meaningful employment, under fair working conditions and building or maintaining infrastructure which will last. 1.6 Institutional arrangements 14 David Tajgman and Jan de Veen, ILO,

8 The ILO is impressed by the speed and commitment by which Department of Public Works have established the task force for their Program Berbasis Pekerja 15, and appreciates the invitation by the Deputy Chairman for Regional Development of BAPPENAS for the ILO to join the existing Padat Karya advisory group and coordination of the Padat Karya Programmes where there is a need for better understanding of the potential of and the best practices for the use of appropriate labour-based and labour-intensive methods in infrastructure works programmes. The medium and longer term support of the ILO would facilitate the two Special Task Forces to be involved in a review of the Government policies and programmes for infrastructure works in close collaboration with the various specialized UN agencies and also in consultation with other key stakeholders (including trade unions, employers, contractors, consultants and professional engineering and planning authorities and others not directly represented in the two Special Task Forces. The ILO would then be in a position to recommend more permanent appropriate technology changes and be able to assist with the reworking of specifications and contract procurement documentation to realize the employment creation potential of the infrastructure programmes. This should involve the input of specialists and extensive training. With the Department of Public Works (PWD) and BAPPENAS as the focal points and with the establishment of the Program Berbasis Pekerja Task Force and the link to the Padat Karya Advisory Group for this project, it will be essential for the ILO technical assistance to have active partners representing the broad range of stakeholders. Partners for this proposed programme should be drawn from: Departments of technical line ministries and agencies involved in infrastructure and the construction sectors: (Agriculture, Science and Technology, Home Affairs, Housing and Human Settlements, Social Welfare and Development, Local Government, Public Works, Mines and Energy, Communication, Forestry) SPSI (Indonesian building and public works workers unions) The Employers Confederation of Indonesia National contractors organizations: AKI, GAPENSI 16 Indonesian Consulting Engineers, INKINDO 17 Professional civil engineering and architectural institutions. Key technical universities (Institute of Technology Bandung, University of Indonesia), technical education institutions Asian Development Bank (ADB) FAO and WFP HABITAT ILO UNDP World Bank (IBRD) OECF It is envisaged that the two Special Task Forces may also need to have much smaller working groups which will need to be established as early as possible or formed as sub-groups of appropriate existing employment task forces, to enable the ILO technical assistance team for the planned work to be able to effectively operate especially in the initial phases and in the formulation of the full programme Program Berbasis Pekerja (PBP), Labour-based Program. GAPENSI = Gabungan Pelaksana Konstruksi Indonesia. INKINDO = Ikatan Nasional Konsultan Indonesia. 8

9 Following discussion with DPW on 8 September 1998, a Departmental Task Force has been established and the expectations of the work of the Task Force and the ILO Technical Support have been incorporated into the planned project outputs and activities. Following discussions with BAPPENAS on 14 September 1998, it was confirmed that the ILO should join the existing advisory group supporting the planning and coordinating role of BAPPENAS in the Padat Karya programmes and especially for the new programme PK3 to be formulated for Development Objective: The overall programme objective is optimal employment generation and poverty alleviation through the realization of effective and efficient, well managed, labour-based and labour-intensive programmes whereby an optimum number of persons are engaged by the public and the private sector under fair and reasonable working conditions, in the design, implementation and maintenance of essential construction and infrastructure works and wherever possible the programmes are institutionalized. To achieve this objective a three phased approach is proposed: Phase 1 (Pre-Preparatory Assistance) would involve immediate labour-based technology awareness raising and some introductory technical training in labour-based and labourintensive technology for infrastructure works programme, a preliminary training needs assessment and the finalization of a full Summary Project Outline document for the Preparatory Assistance Phase - Phase 2. Phase 2 (Preparatory Assistance) would involve the development and finalization of a project proposal in the ILO project document format that addresses all the emerging and anticipated technical, financial, training, monitoring and organizational aspects of an effective ILO Labour-based and labour-intensive technology advisory support and training Project. Phase 3 (Full Phase) of the programme would involve the regular and evolving operations of a core ILO Technical Advisory and Training Unit working together with the Special Task Forces on Employment in infrastructure works, and operating with short term inputs of specialists as required. 3. Immediate Objectives: Better understanding of the role and potential of labour-based and labour-intensive works programmes in the infrastructure and construction sectors (Phase 1, 2 and 3); Mainstream construction and infrastructure works locally planned, designed, implemented, monitored and maintained using where appropriate labour-based and labour-intensive methods in a cost and quality effective manner (Phase 2 and 3); Clearly defined and understood labour-based and labour-intensive technology strategies, policies and programmes of Government in the field of infrastructure works in place (Phase 3). 4. Outputs and Activities: Phase 1 (Pre-Preparatory Assistance) - Output 1 9

10 Immediate awareness raising and basic technical training provided for government key decision makers, contractors and consultants in the area of labour-based technology. Phase 1 (Pre-Preparatory Assistance) - Activities for Output 1 compile information on current labour-based, labour-intensive and equipment-based infrastructure programmes in Indonesia (local consultant) arrange for establishment of the Special Task Forces or link to an existing Employment Task Force (ASIST-Asia Pacific and ILO Area Office) arrange and conduct labour-based technology awareness raising seminar(s) for senior Government officials, consultants and contractors representing departments involved in infrastructure works programmes whether or not currently involving labour-intensive or labour-based methods (ASIST-Asia Pacific and local consultant) prepare report on results of introductory training a preliminary training needs assessment and task force arrangements (ASIST-Asia Pacific) Phase 1 (Pre-Preparatory Assistance) - Output 2 A draft Summary Project Outline (SPROUT) for the Preparatory Assistance Phase (Phase 2) and the donor and government support for the technical assistance mobilized. Phase 1 (Pre-Preparatory Assistance) - Activities for Output 2 prepare Terms of Reference for Phase 2 (ASIST-Asia Pacific) engage local/international consultant for support to ASIST-Asia Pacific on Summary Project Outline document finalization (ASIST-Asia Pacific) conduct presentation of a project outline to special donors meeting (ASIST-Asia Pacific & local consultant) discuss funding of Preparatory Assistance with all key donors and financial institutions (ASIST-Asia Pacific, COMBI) prepare Plan of Action for funding and implementation of Preparatory Assistance Programme (ASIST-Asia Pacific & local consultant) Phase 2 (Preparatory Assistance) - Output 1 Strategies and approaches for the use of labour-based and labour-intensive public works programmes developed and full project document completed. Phase 2 (Preparatory Assistance) - Activities for Output 1 working together with the Task Forces established for the labour-intensive and labour-based programmes, identify key project document outputs and activities needing technical advisory and training services through a review and assessment of: the National Development, the employment and technology policies on which it is based, the infrastructure programmes involved, the budget involved (both from Government, donors and development banks) and the progress currently being made against targets; the unemployment situation and trends based on regional and district data, checking labour-market information and systems for unemployment situation and trends; the infrastructure construction and maintenance needs and possibilities for using labourbased and labour-intensive methods without compromising on quality, technical standards or significantly on the cost of completed works; the need for policy and programme change and the isolation of particular sectoral works 10

11 which must continue to be carried out in full or in part using existing equipment-intensive methods; design new categories of works for labour-based, labour-intensive, equipment based programmes and modified equipment-based programmes; general categories of community-based and public works and productive and social infrastructure components; available in country resources to be able to undertake an expanded programme (The World Bank intends to carry out a Contractor s capacity review in September 1998); how to achieve and maintain minimum technical standards and quality; the extent of re-orientation training needed for government technical and administrative staff to be able to cope with the new programmes; the need for policy and regulatory change including contract packaging, programme technical specification; the need for additional Government staff to be involved in the labour-based technology programme (labour-based methods are also more management-intensive than equipmentbased methods) and the broad outline of staff to be trained; need for certification of Skilled Workers and mandors ; 18 adequacy of existing technical specifications and contract documents; the extent to which consultants and contractors will also require advisory support; the need to define possible linkages to vocational training, cooperation with the universities and small and medium enterprise development as well as access to credit; the incorporation of basic labour standards, including wage levels for workers to be engaged for these works; current programme monitoring (timeliness, cost and quality) and need for improvement; the extent to which there will be regular dialogue with communities trade unions and employers organizations involved in the design and execution of the employment-intensive programmes; the extent to which previous efforts with labour-based programmes in the country have experienced problems and from which the proposed programme could learn organize a workshop to discuss with government officials concerned and other project counterparts, the draft strategies, approaches and programme framework proposed developed for Indonesia finalize preparatory assistance project document after endorsement of key stakeholders/donors. Phase 2 (Preparatory Assistance) -Output 2 A comprehensive training and capacity building package for both labour-based and labourintensive programmes for government, contractors and consultants. Phase 2 (Preparatory Assistance) - Activities for Output 2 assess training needs identify the potential trainers review need for certification of Skilled workers and mandors organize workshop to clarify and to agree upon the approach, duration and content of the training 18 Mandors are labour hire entrepreneurs who receive fees for engaging local labour for various contractors. 11

12 complete preliminary basic technical training for government, contractors and consultants 12

13 Phase 3 (Full Time Support) - Output 1 Key decision makers, communities, contractors, consultants, planners, engineers, administration and finance personnel, technicians and supervisors who will be associated with the employmentintensive programme trained in the planning, design and implementation of labour-based and labour-intensive infrastructure programmes. Phase 3 (Full Time Support) - Activities for Output 1 prepare of full detailed training materials in English and Indonesian; arrange Training of Trainers courses for rapid introduction of labour-based technology into current works programmes through existing training set up for Government, contractors and consultants; arrange for institutionalization of training and incorporate a quality assurance control; liaise with ILO Specialists involved in Certification of Skilled Workers and mandors needed for the expanded labour-based and labour-intensive programmes. Phase 3 (Full Time Support) - Output 2 The technical line ministries involved in the Indonesia infrastructure works programmes able to optimize the use of labour-based technology in their mainstream construction and infrastructure works programmes, and to adjust their programme under changing socio and economic circumstances. Phase 3 (Full Time Support) - Activities for Output 2 assess the extent to which existing construction and maintenance specifications and contract documentation will require to be modified and effect modification; identify sectors to be included, prepare detailed work-plans and budgets; recommend the most appropriate methods of maintaining technical quality, timeliness, community participation (where planned), and cost effectiveness of programmes and individual projects; recommend systems for monitoring of all aspects of the programmes; recommend the most efficient day to day methods of managing labour-based programmes; undertake specific labour-based technology related rapid assessments as may be required for: assisting communities to plan and prioritize infrastructure and development needs; labour-based technology technical training and orientation needs; labour availability, suitability and costs analyzed by province and district; the rural-urban emphases of the programmes, categories of works and programme menus ; encouraging the existing equipment-based contractors to change; the length of employment contracts which can be offered so that the maximum number of person benefit from the programme; the method of selection of the workforce; payments and working conditions, occupational safety and health; the extent to which an opportunity for an integrated approach to employment generation exists in such areas as training for employment and small enterprise and credit assistance; research and development needs to help improve the programme; specific monitoring and evaluation needs; assess need for any ongoing specialist technical inputs in the field of labour-based and labourintensive technology. 13

14 Phase 3 (Full Time Support) - Output 3 Essential inputs and resources identified for the full implementation of the sectoral labour-based and labour-intensive sub-programmes. Phase 3 (Full Time Support) - Activities for Output 3 assist the Task Forces in packaging scope and cost of on-going and proposed labour-based and labour-intensive programmes; present the packages to Government, major financial institutions and donors for funding and implementation; encourage bilateral support programme to give priority where technically feasible to the use of labour-based and labour-intensive methods. 14

15 5. Inputs: 5.1 Preparatory phase ILO ASIST-Asia Pacific will provide direct inputs as needed and engage the support of a local consultant. Assistance will also be sought from the Consulting Group for Indonesia and any local costs associated with preliminary awareness raising training are to be met by the government, the contractors and the engineering consultants concerned. 5.2 Preliminary Technical Assistance Budget Estimate for Phase 2 (Preparatory Assistance) A combined local and international team of specialists are envisaged as necessary for this preparatory phase. The team leader should be a prominent senior local professional experience in economics, able to develop and successfully promote the vision of and direction for the envisaged programme. He or she will be supported by a senior local and international development engineering specialist, a local and international socio-economist and as well an international legal specialist who will examine and recommend any legislative and regulatory changes needed to implement a wider labour-based and labour-intensive programme. Detailed job descriptions will be prepared for all posts. Item Description Quantity Rate Amount 1 International Consultants Development Engineering Specialist Socio-Economist Legal Specialist ILO ASIST-Asia Pacific Technical Coordinator Local Consultants Socio-Economist Team Leader (Economic specialist) Development Engineering Specialist 4.0wm 1.0wm 1.0wm 4.0wm 3.0wm 4.0wm 4.0wm 60,000 12,500 12,500 60,000 6,000 8,000 8, ,000 2 In-country travel/expenses 17,000 17,000 3 Printing of reports/training resources 8,000 8,000 4 Support costs 28,000 28,000 TOTAL 220, Government support 15

16 This is an area to be discussed and finalized with Government but already there are clear indications that the bulk of in-country training costs and arrangements will be provided by the Government, and a separate budget will be prepared by Government. 6. Proposed Timeframe Start Finish Duration Phase 1 September 1998 October months Phase 2 November 1998 February months Phase 3 April 1999 April months i:\mike\indone\prodoc.wpd (18/9/98) i:\dsl\asist\prodoc.w61 (16/9/98) 16

17 ANNEX A Major Public Works Programmes Proposed for 1998/99 Financial Year No. Title Ministry/ Agency Budget US$ Rp. Mill. Bill. 1 ) Labour Costs Rp. Bill. (40%) of Total Budget 2 ) Per Days Mill. 3 ) Pers. Years ) Government only 175 1, Urban Construction Manpower Rural Construction Manpower Reforestation Forestry Rural Electrification Mines/Energ With World Bank 1,160 9,280 3, ,237 5 Kecamatan Development Local Govt , Village Infrastructure Local Govt , Crash Urban Programme Public Urban Low Income Local Govt ,000 1, With ADB Crash Urban Programme Public With OECF 500 4,000 1, Village Infrastructure Local Govt , School Renovation Education 200 1, TOTAL 1,875 15,00 0 6, ,000 Source: 1. S. Dice, 1998, Employment Generation Programmes, presentation at Donor Meeting on Social Safety Net Issues, World Bank, 5 June Task Force estimates Note: Assumptions: 1) US$1 = Rp.8, ) Construction costs include materials & equipment (60%) and labour (40%) following Ministry of Public Works guidelines for labour-intensive projects. 3) Labour cost per day = Rp.10, ) Person Year = 300 days 17