Class 10 1 a case study of japanese ODA project to indonesia 2018

Hypothesis and Method of Approach Planning Stage ImplementationStage Implementation Stage Brantas Office Post-and Project Site Offices Government and Executing Agencies BAPPENAS, DGWRD/

Class 10 A Case of Japanese

ODA Project to Indonesia and

A Case of World Bank’s Loan

Project to Japan

Prof Koji Fujimoto

2018

1 Development Finance, MPP, VJU

Brantas River Basin Development Project

A Case of Japanese ODA Project to

Indonesia

Prof Koji Fujimoto

2018

The Bantas River Basin Development Project

The Brantas River Basin Development Project (The Brantas

Project) is the integrated development plan for the basin of

Brantas river which runs over 320 km covering 12,000 km2 of the basin area in East Java, Indonesia

Japanese Government helped to implement the Project over 40 years (1959 through 2002) It formulated 4 Master Plans (M/P) at intervals of 10 years and provided financial assistance for 31

large scale economic infra-projects

In financial terms, Japan’s ODA reached ¥170 billion ($1.7

billion) out of total investment costs of ¥225 billion ($2.25

billion)

3 Development Finance, MPP, VJU

Site Map of the Brantas River

Basin Development Project

4

Contents of Case Study Presentation

I Evaluation Study Hypothesis and Method of Approach

1 Hypothesis

2 Method of Approach

II Structure and Contents of Evaluation Study

1 Development Performances (Output and Outcome) of the

Brantas Project

2 Institutions Evolved by Stakeholders

3 Linkages between Performances and Institutions

III Conclusion against the Hypothesis

1 Close Links between Performances and Institutions

2 Progressive and Accelerating Performances over Time

5 Development Finance, MPP, VJU

I Hypothesis and Method of Approach

1 Hypothesis:

(1) Infra-Project is a product of an interaction between physical development (often recognized by project development

output/outcome) and institutional evolution

(2) Institutional evolution is often equally important or more

important in promoting project performances and

Indonesian economic development at large

I Hypothesis and Method of Approach

2 Method of Approach

(1) Comprehensive Matrix Approach

- Performances of stakeholders in relation to project cyclestages are identified

(2) Institutional Evolution Approach

- Institutions evolved by stakeholders, which contributed

to the performances are identified throughout projectcycle stages

7 Development Finance, MPP, VJU

• Comprehensive Matrix Approach (Graphical Presentation)

I Hypothesis and Method of Approach

Planning Stage ImplementationStage

Implementation Stage Brantas Office

Post-and Project Site Offices Government and Executing Agencies (BAPPENAS, DGWRD/DPU, etc)

OECF/JBIC and JICA

Japanese Government

Indonesia

Japan

PMP

Development Finance, MPP, VJU 9

I Hypothesis and Method of Approach

OTCA

（6/1962)

JICA (8/1974)

Change in JICA's Status (10/2003)

(New)JICA (10/2008) OECF

(3/1961)

JBIC (10/1999)

EXIM

(1950)

JBIC (10/2008)

History of Japan's ODA Organizations

: Overseas Technical Cooperation Agency

: Overseas Economic Cooperation Fund of Japan

: Export Import Bank of Japan

: Japan Bank for International Cooperation

: Japan International Cooperation Agency

• Institutional Evolution Approach (Graphical Presentation)

I Hypothesis and Method of Approach

Planning Stage Implementation

Stage

Implementation Stage

Post-Within Brantas

River Basisn

In Other River Basins of the Country

Offspring Private Compamies (including Cooperatives)

Offspring Public Corporation

Schools and Unmiversities

Project Cycle of Brantas Development

Various Institutions Evolved Replication and Application

Utilization of Institutional Knowledge and Experiences

Other Projects of Similar

II Structure and Contents of Evaluation Study

1 Development Performances (Output and Outcome) of the

Brantas Project

(1) Output

→ Formulation of 4 Master Plans

→ Efficiency/Effectiveness of Construction of 31 Projects: 9 Dam-cum-Hydropower Projects, 6 Barrage Projects, 8 Irrigation Projects, 6 River Improvement Projects and 2 Debris

Control/Sabo (Volcanic Disaster Prevention) Projects

→ Physical Structures of 31 Projects Constructed

→ Immediate/Direct Services Accrued: Electric power, flood control, agricultural production, volcanic disaster prevention

(Sabo), water utilization (D/I water supply, fisheries and so on)

11 Development Finance, MPP, VJU

(2) Outcome

→ Human Resources Development

→ Economic Welfare (Economic Growth)

→ Poverty Reduction and Equity

→ People’s Mindset

→ Replication of Infra-Projects

→ International Reference

and

→ Spun-out Organizations: P.T Indra Karya, P.T Brantas

Abipraya, P.J.T and Faculty of Engineering, B Univ

II Structure and Contents

2 Institutions Evolved by Stakeholders

(1) Japanese Stakeholders and Institutions Evolved

(ⅰ) Japanese Government

- Coordinated procedure between T/A and F/A

- High level ODA dialogue mission

II Structure and Contents

Development Finance, MPP, VJU

(ⅲ) OECF (then, JBIC)

- Annual cyclical modality of ¥ loan commitment

- Procurement guidelines and procedures

- Transfer of decision making authority to Jakarta Office - Workshops/ meetings for project promotion

- Local cost financing schemes

- Post-evaluation and post-monitoring

- Technical assistance schemes (SAPROF, SAPI, SAPS)

II Structure and Contents

th ủ t ụ c

(2) Indonesian Stakeholders and Institutions Evolved

(ⅰ) Indonesian Government

- ODA projects request to Japan and CGI

- Budgetary system for foreign aid projects

- Arrangement of workshops and meetings for project

promotion

(ⅱ) BAPPENAS

- Political commitment vis-à-vis priority projects on the

blue book - Workshops and meetings for project promotion

15

II Structure and Contents

Development Finance, MPP, VJU

(ⅲ) DGWRD, Ministry of Public Works

- Sectoral development planning exercises

- Workshops and meetings for project promotion

(ⅳ) Brantas Office as PMU (Project Management Unit)

- System of PMU and sub-PMUs (Project Site Offices)

- Political commitment of Indonesian Gov to the BrantasOffice

- Spun-out organizations

- Contracting system vis-à-vis manpower development

and technology transfer

II Structure and Contents

II Structure and Contents

- Leadership of Prof Ir Suryono as an institution

- “One River, One Plan and One Management” principle - Mutual trust among the tri-parties concerned

- Methods of manpower training vis-à-vis transfer of

technology and knowledge

- Coordinator consulting system

Institutions evolved are grouped into “9 plus One” institutions which are shown in “3 Linkages between Performances and

Institutions” below

17 Development Finance, MPP, VJU

3 Linkages between Performances and Institutions

Development performances of each stage of P/C are linked to “9 plus One” grouped institutions to identify quantitative and

qualitative contribution of the institutions to the performances

(1) Development Performances of 3 Stages of P/C

(ⅰ) Planning Performance: Effective/efficient 4 M/Ps making

(Output)

(ⅱ) Implementation Performance: Efficiency/effectiveness of

construction of 31 projects (Output)

(ⅲ) Post-Implementation Performance: Direct performance

(Output) and indirect project performance (Outcome)

II Structure and Contents

(2) “9 plus One” Grouped Institutions

(ⅰ) Four Master Plans

(ⅱ) Coordination between Master Plans and Implementation

of Projects

(ⅲ) Cyclical Pre-investment Modality

(ⅳ) Rules and Systems for Effective and Efficient Project

Implementation

(ⅴ) Phased Contracting System

(ⅵ) Manpower Training Methods

(ⅶ) Mutual Trust

19

II Structure and Contents

Development Finance, MPP, VJU

(ⅷ) One and Only Consultant Policy

(ⅸ) Management of the Brantas Office

Plus

(One) Spun-out Organizations; P.T Indra Karya, P.T Brantas

Abipraya, Perum Jasa Tirta and Faculty of EngineeringBrawijaya University

The linkages or relationships between the development

performances of the Brantas Project and “9 plus One” institutions are visually shown in Figure 1 below

II Structure and Contents

Indirect Project Performance Regional, National, International

Post-Implementation Stage (ix) Management of Brantas Office

(v) Phased Contracting Systems

Project Implementation

(viii) One & Only Consultant (Nippon Koei Co Ltd.)

(vi) Manpower Training Methods

(vii) Mutual Trust between Three Parties Concerned

Sprouted-out Organizations

Mr.Suryono: Leadership and

Philosophy of “One River, One

Plan and One Management”

“ Direct Force ” ： Exclusive

Management Authority Given to

the Brantas Office

P.T Brantas Abipraya

Faculty of Engineering, B Univ

Perum Jasa Tirta P.T Indra Karyra

Direct Project Performance

Physical Structures, Power, Flood Control, Rice Produc- tion, Sabo, I/D Water, etc

Post-Implemen’ Stage

Human Resource Development Economic Growth and Welfare

International Reference Poverty Reduction and Equity

People’s Mindset: Brantas Spirit, etc Replication of Brantas Projects

Figure 1 Linkages between Institutions and Development Performances of the Brantas Project

21 Development Finance, MPP, VJU

III Conclusion against the Hypothesis

Based on the hypothesis as well as identified development

performances (Output and Outcome) and institutions, this

evaluation study tried to answer the question, “Which

Institution Contributed to What Performance of Which Stage

of the Project Cycle?”

The study succeeded considerably in answering the question

as Figure 1 literally shows the links or relationships among the

“9 plus one” institutions, the performances at three stages of

P/C, which includes Output and Outcome

III Conclusion against the Hypothesis

1 Close Links between Performances and Institutions

Four types of performances (Planning Performance,

Implementation Performance and Direct Project Performance as Output, and Indirect Project Performance as Outcome) are closely linked to the “9 plus One” institutions

2 Progressive and Accelerating Performances over Time

As more experiences are accumulated over 40 years of Japan’s ODA, four types of performances are progressively and

acceleratingly achieved, to which the “9 plus one” institutions

considerably contributed

23 Development Finance, MPP, VJU

Performances (Output and Outcome) and Institutions

Revisited

Four Types of Performances (Output and Outcome)

(ⅰ) Planning Stage Performance as Output (More Efficient and

Effective Planning and 4 M/Ps) Performance)

(ⅱ) Implementation Stage Performance as Output (More efficient

and Effective Construction)

(ⅲ) Post-Implementation Stage Performance as Output (31 Infra

Structures, EIRR, Electric Power, Flood Control, AgriculturalProduction, Sabo, Water Utilization such as D/I Water Supply)(ⅳ) Post-Implementation Stage Performance as Outcome (6

Outcomes are envisaged in the next slide)

III Conclusion against the Hypothesis

6 Outcomes

(ⅰ) Human Resource Development

(ⅱ) Economic Growth and Welfare (Poverty Reduction and

Equitable Income Distribution)

(ⅲ) People’s Mindset (Modern Way of Thinking)

(ⅳ) Construction of Infra Projects in Other Basin Development

in Indonesia (Replication of the Brantas Projects)

(ⅴ) Food/Rice Sufficiency Achieved (Poverty Reduction and

Equitable Income Distribution)

(ⅵ) Viet Nam, Ghana, Egypt and Bangladesh Mission

(International Reference)

25

III Conclusion against the Hypothesis

Development Finance, MPP, VJU

“9 plus One” Institutions

(ⅰ) Comprehensive Master Plans

(ⅱ) Coordination between M/Ps and Project Implementation

(ⅲ) Cyclical Pre-investment Modality

(ⅳ) Roles and Systems for Effective Project Implementation

(ⅴ) Phased Contracting Systems

(ⅵ) Manpower Training Methods

(ⅶ) Mutual Trust

(ⅷ) One and Only Consultant Policy

(ⅸ) Management of the Brantas Office

Plus

(One) Spun-out Organizations (elaborated in the next slide)

III Conclusion against the Hypothesis

Four Spun-out Organizations as “One” Institution

Two Private Companies

(ⅰ) PT Indra Karya (Consulting Co.)

(ⅱ) PT Brantas Abipraya (Construction Co.)

One Parastatal Corporation

(ⅲ) Perum Jasa Tirta (Water Resources Management

Corporation)

One University Faculty

(ⅳ) Faculty of Engineering of Brawijaya University



Reference: Fujimoto, K.(2008), Aid Effectiveness to Infrastructure –A

Comparative Study of East Asia and Sub-Sahara Africa- Indonesia Case Study,

JBIC Research Paper No 36-2

27

III Conclusion against the Hypothesis

Development Finance, MPP, VJU

Aichi Irrigation Project

A Case of World Bank’s Loan

Project to Japan

Prof Koji Fujimoto

2018