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Implementation Completion Report (ICR) Review - Village Infrastructure Project


  
1. Project Data:   
Project ID:
P034891
Project Name:
Village Infrastructure Project
Country:
Indonesia
Sector:
Rural Roads, Transportation
L/C Number:
L3888
Partners Involved:
Prepared By:
Binyam Reja
Reviewed By:
Keith Pitman
Group Manager:
Gregory Ingram
Date Posted:
06/30/1999

2. Project Objectives, Financing, Costs, and Components:

The project was approved on May 23, 1995 and made effective on August 25, 1995. The loan was closed on September 30, 1998, as planned.

Objectives: The project sought to reduce poverty in poor rural areas in new ways, and more specifically to:

  1. promote village participation, empower villagers to decide priority uses of a grant and to implement the works;
  2. provide public infrastructure needed in poor villages;
  3. create jobs paid in cash for unemployed/underemployed villagers especially in the seasons of low agricultural activity
  4. increase transparency
  5. mobilize villager contributions
  6. support the Government decentralization agenda; and
  7. reduce non-infrastructure impediments to trade and transport in rural areas.

Components: The project covered 1200 villages on Java. Each village was to receive Rp 120 million (then equivalent to about $54,000) towards public infrastructure of their choice. The loan categories were: "goods, works and services under grants," and "consultant services" for management, implementation and monitoring of the village works, and for a study of constraints to trade and transport.

Project Costs: Appraisal: US$83.8; Actual: US$75.2.
Bank Financing: Appraisal: US$72.5; Actual US$65.7. A balance of US$6.2 million was canceled.

3. Achievement of Relevant Objectives:

The project achieved, and in some cases surpassed, its objectives. A total of 1,230 villages compared to 1200 foreseen built a total of 3,680 km of rural roads, 7,790 meters of bridges, 2,427 water systems, 1,230 communal sanitation units and 2 piers totaling 61 meters. The benefits from the infrastructure are significant, in addition to the the construction having provided employment for cash to villagers. Transparency was considerably better than other projects and significantly reduced top-down planning and malfeasance. The field engineers gained experience that is valuable for subsequent activities. The main concern remains future maintenance, which is the responsibility of villages but villagers, while appreciating the importance of preventive maintenance, don't always do it.

4. Significant Outcomes/Impacts:

The construction of rural roads, providing critical access to villagers.

5. Significant Shortcomings (include non-compliance with safeguard features):

While the project gave training to villages on maintenance, inertia and lack of outside funding often led to inadequate maintenance. Other project elements (e.g. sanitation) were jeopardized by lack of education to make them effective.

6. Ratings:ICROED ReviewReason for Disagreement/Comments
Outcome:
Highly SatisfactoryHighly Satisfactory
Institutional Dev.:
SubstantialSubstantial
Sustainability:
LikelyLikely
Bank Performance:
Highly SatisfactoryHighly Satisfactory
Borrower Perf.:
Highly SatisfactoryHighly Satisfactory
Quality of ICR:
Exemplary

7. Lessons of Broad Applicablity:

The key lessons from this project are: (i) large projects can be used to address village level needs at considerable speed, and (ii) village participation improves resource allocation and enhances transparency. in particular,
  • direct channeling of Bank funds to village level was highly effective and did not result in either loss of "control" or "waste" as predicted by Bank staff who advocated standard channeling through ministerial agencies.
  • villagers voluntarily contributed land thus negating the legal department's intention to impose "standard involuntary resettlement and compensation guidelines" that would have delayed implementation and been contentious.

8. Audit Recommended?  No

          Why?  

9. Comments on Quality of ICR:

The ICR is exemplary. It covers all aspects of project implementation and results, and identifies useful lessons.

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