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

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 Development Finance, MPP, VJU A Case of Japanese ODA Project to Indonesia Brantas River Basin Development Project Prof Koji Fujimoto 2018 Development Finance, MPP, VJU 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 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) Development Finance, MPP, VJU Site Map of the Brantas River Basin Development Project Development Finance, MPP, VJU Contents of Case Study Presentation I Evaluation Study Hypothesis and Method of Approach Hypothesis Method of Approach II Structure and Contents of Evaluation Study Development Performances (Output and Outcome) of the Brantas Project Institutions Evolved by Stakeholders Linkages between Performances and Institutions III Conclusion against the Hypothesis Close Links between Performances and Institutions Progressive and Accelerating Performances over Time Development Finance, MPP, VJU I Hypothesis and Method of Approach 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 Development Finance, MPP, VJU I Hypothesis and Method of Approach Method of Approach (1) Comprehensive Matrix Approach - Performances of stakeholders in relation to project cycle stages are identified (2) Institutional Evolution Approach - Institutions evolved by stakeholders, which contributed to the performances are identified throughout project cycle stages Development Finance, MPP, VJU I Hypothesis and Method of Approach PMP • Comprehensive Matrix Approach (Graphical Presentation) Planning Stage Implementation Stage PostImplementation Stage Brantas Office and Project Site Offices Government and Indonesia Executing Agencies (BAPPENAS, DGWRD/DPU, etc) OECF/JBIC and JICA Japan Japanese Government Development Finance, MPP, VJU I Hypothesis and Method of Approach History of Japan's ODA Organizations OTCA （6/1962) Change in JICA's Status (10/2003) JICA (8/1974) (New)JICA (10/2008) OECF (3/1961) JBIC (10/1999) EXIM (1950) OTCA OECF EXIM JBIC JICA JBIC (10/2008) : Overseas Technical Cooperation Agency : Overseas Economic Cooperation Fund of Japan : Export Import Bank of Japan : Japan Bank for International Cooperation : Japan International Cooperation Agency Development Finance, MPP, VJU I Hypothesis and Method of Approach • Institutional Evolution Approach (Graphical Presentation) Project Cycle of Brantas Development Planning Stage PostImplementation Implementation Stage Stage Various Institutions Evolved Replication and Application Utilization of Institutional Knowledge and Experiences Other Projects of Similar Nature In Other River Within Brantas Basins of the River Basisn Country Offspring Organizations Offspring Private Compamies (including Cooperatives) Development Finance, MPP, VJU Offspring Public Corporation Schools and Unmiversities 10 II Structure and Contents (ⅲ) OECF (then, JBIC) - Annual cyclical modality of ¥ loan commitment - Procurement guidelines and procedures thủ tục - 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) Development Finance, MPP, VJU 14 II Structure and Contents (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 Development Finance, MPP, VJU 15 II Structure and Contents (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 Brantas Office - Spun-out organizations - Contracting system vis-à-vis manpower development and technology transfer Development Finance, MPP, VJU 16 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 Development Finance, MPP, VJU 17 II Structure and Contents 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 Stages of P/C (ⅰ) Planning Performance: Effective/efficient 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) Development Finance, MPP, VJU 18 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 Development Finance, MPP, VJU 19 II Structure and Contents (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 Engineering Brawijaya University The linkages or relationships between the development performances of the Brantas Project and “9 plus One” institutions are visually shown in Figure below Development Finance, MPP, VJU 20 Figure Linkages between Institutions and Development Performances of the Brantas Project (ix) Management of Brantas Office Sprouted-out Organizations Mr.Suryono: Leadership and Philosophy of “One River, One Plan and One Management” P.T Indra Karyra P.T Brantas Abipraya “ Direct Force ” ： Exclusive Management Authority Given to the Brantas Office Perum Jasa Tirta Faculty of Engineering, B Univ Indirect Project Performance Regional, National, International Human Resource Development Economic Growth and Welfare People’s Mindset: Brantas Spirit, etc Replication of Brantas Projects Planning Performance Implemen’ Performance Direct Project Performance Effective and Efficient Planning Effective and Efficient Construction Physical Structures, Power, Flood Control, Rice Production, Sabo, I/D Water, etc Pre-Implemen’ Stage Implementation Stage Post-Implemen’ Stage (i) Comprehensive (v) Phased Contracting Master Plans (4 M/Ps) Systems International Reference Poverty Reduction and Equity Post-Implementation Stage (vi) Manpower Training Methods (iii) Cyclical (ii) Coordination between Pre-investment Modality the M/Ps and Implementation of Projects (vii) Mutual Trust between Three (iv) Rules & Systems for Effective Parties Concerned Project Implementation (viii) One & Only Consultant (Nippon Koei Co Ltd.) Development Finance, MPP, VJU 21 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 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 Development Finance, MPP, VJU 22 III Conclusion against the Hypothesis 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 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 Development Finance, MPP, VJU 23 III Conclusion against the Hypothesis 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 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, Agricultural Production, Sabo, Water Utilization such as D/I Water Supply) (ⅳ) Post-Implementation Stage Performance as Outcome (6 Outcomes are envisaged in the next slide) Development Finance, MPP, VJU 24 III Conclusion against the Hypothesis 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) Development Finance, MPP, VJU 25 III Conclusion against the Hypothesis “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) Development Finance, MPP, VJU 26 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 Development Finance, MPP, VJU 27 A Case of World Bank’s Loan Project to Japan Aichi Irrigation Project Prof Koji Fujimoto 2018 Development Finance, MPP, VJU 28 .. .A Case of Japanese ODA Project to Indonesia Brantas River Basin Development Project Prof Koji Fujimoto 2 018 Development Finance, MPP, VJU The Bantas River Basin Development Project The Brantas... OECF/JBIC and JICA Japan Japanese Government Development Finance, MPP, VJU I Hypothesis and Method of Approach History of Japan''s ODA Organizations OTCA （6 /19 62) Change in JICA''s Status (10 / 2003) JICA... 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