AusAID

Indonesia Infrastructure Initiative (IndII)

Water & Sanitation Initiative
Independent Assessment Team
Terms of Reference
1. BACKGROUND AND CONTEXT
The Indonesia Infrastructure Initiative (IndII) forms part of the Australian Governments
(GOAs) Infrastructure for Growth Initiative (IFGI). IFGI aims to support growth, increased
productivity and employment in the Asia-Pacific region by helping address infrastructure
constraints, including through:
Financing for basic physical infrastructure projects (e.g. to facilitate market access
and trade, including in lagging regions);
Activities designed to improve infrastructure governance / management in specific
countries or sub-sectors (e.g. to improve infrastructure policy and regulations, reduce
corruption and improve the effectiveness of partner government investment in
infrastructure); and
Contributions to selected global facilities trialing innovative approaches, financing
global public goods or undertaking important analytical research (e.g. in areas of
public-private partnerships, output-based aid, energy sector management, climate
change adaptation and clean energy use).
The total IFGI commitment is $505.8 million over the four years 2007-08 to 2010-11.
Preparation of the Indonesia IFGI program commenced in 2007, with total funding set at
$64.8 million. AusAID determined this would fund three sub-programs:
The IndII Facility ($50 million);
Trust Funds to support infrastructure activities managed by the MDBs ($10 million); 1
and
Other activities to be managed directly by AusAID ($4.8 million).
The Project Design Document (PDD) for the IndII Facility was endorsed at the Peer Review
meeting held in September 2007. 2 SMEC was subsequently appointed as Managing
Contractor and Facility implementation formally commenced in August 2009 following
signature of the Subsidiary Arrangement (SA) by Government of Indonesia (GOI) and
AusAID.
IndII Facility Design
The IndII Facilitys goal is to reduce policy, regulatory, capacity and financing constraints on
infrastructure investment at national and sub-national levels. To achieve this, the Facility was
structured with three components:
Infrastructure project management (IPM): this aims to support national and subnational government agencies to develop, design and implement priority infrastructure
projects, including those funded through the multi-lateral development banks (MDBs);
Policy and regulatory (P&R): this aims to support national government agencies to
develop policies and regulations that will provide a more supportive environment for
infrastructure investment and management; and
Infrastructure enhancement grants (IEG): this aims to provide grants for enhancing the
safety and maintenance features of infrastructure projects that are being supported by
IndII or other donors.
Implementation of the Facility is guided and overseen by a Management Board, which is cochaired by the Bappenas Deputy for Infrastructure and the AusAID Minister Counsellor.
1

It was initially envisaged that the full $10 million would be available to the World Bank. The recent
amendment of the Subsidiary Arrangement permits part of this amount to be allocated to ADB.
2
Copies of all documents referenced in the TOR are provided in an accompanying information
package, a list of whose contents is attached as Annex A

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Decisions on individual activities are taken by a Technical Team comprising an Echelon II

official of the three GOI agencies represented on the Board (Bappenas, Coordinating Ministry
of Economic Affairs, Finance) in consultation with AusAIDs resident infrastructure manager.
The Board has directed that the Facility should give highest priority to the water and
sanitation and transport sectors, and should seek to support weak as well as relatively strong
agencies. GOI Board members have also expressed a strong desire to see the Facility support
efforts to accelerate private investment in infrastructure through public private partnerships
and to improve provision of housing for the poor.
Current Implementation Status

The work of the IndII facility encompasses transport and water and sanitation
(watsan), and a third component covering a broader range of cross-cutting themes
relating to infrastructure policy and investment. There are currently 45 activities
completed or ongoing (February 2010).

The transport sector work has expanded rapidly and includes major port and rail
master planning activities; local bus rapid transit (Palembang and Jogjakarta) and
development of the air navigation blueprint. There is extensive work with DG
Highways which complements EINRIP (eg through road safety) but also ventures
beyond, into the development of medium term expenditure and performance based
budgeting frameworks.

IndII already undertakes a range of water and sanitation projects and has
developed a strong partnership with DG Housing and Settlements.

IndII assists with PPP scoping through the development of bankable business
cases to support the Umbalan Spring project and the Jatiluhar-to-Jakarta bulk
water project.

IndII will also design and fund a number of capital grants to provide physical
infrastructure that enhances other Government or donor programs. These grants
could be provision of state of the art bus shelters in well performing cities that
upgrade their public transport to include bus rapid transit systems; there is
potential for grants to enhance road safety; and there is also potential for these
grants to extend household wastewater connections should the new mechanism
prove replicable.

Water and Sanitation Initiative (WSI)

Subsequent to mobilization of the IndII Facility, GOA announced a Water and Sanitation
Initiative (WSI).3 Its goal is to improve living standards of the poor by improving access to
more effective and sustainable water supply and sanitation services, and thereby to contribute
to achievement of related Millennium Development Goals. The more specific objectives are
to:
Expand access to water supply and sanitation services, particularly for the poor,
women and children in schools;
Make water and sanitation services more sustainable by supporting sector reform and
capacity building;
Improve the health and quality of life of the poor and vulnerable by increasing their
understanding of good hygiene practices, as well as by expanding their access to
water supply and sanitation services;
Enhance aid effectiveness and complement other development agencies programs.
3

Through an Exposure Paper published in November 2008

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Identification of an Indonesia WSI program commenced in October 2008, with an indicative

funding envelope of $35 million and an implementation completion date of June 2011 (the
same as IndII). The initial concept, approved in December 2008, has since been substantially
amended, in part due to the funding allocation having been increased to $60.5 million in June
2009. The revised concept, tabled and agreed in August 2009, provides for five components:
A$20 million for accelerating development of new urban water supply connections
through output-based grants to municipal water utilities (PDAMs);
A$10 million for urban sanitation development (of which A$5 million is for outputbased grants for new sanitation connections and A$5 million is for preparation of city
sanitation strategies for five cities);
A$22.5 million to support provision of improved water supplies and sanitation and to
promote better hygiene for low income rural and peri-urban communities (the
PAMSIMAS program);
A$5 million for a civil society component; and
A$3 million for program management.
The Project Design Document for the urban water supply and sanitation components was
tabled and approved in principle in November 2009.
Indonesia WSI program funds will be channeled through the IndII Subsidiary Arrangement
(as already amended), and implementation of the urban water supply and sanitation
components will be supported through amended IndII Facility management arrangements.
These will involve the establishment of a second Technical Team (one will deal with water
and sanitation and the other with transport and other sectors) and the restructuring and
expansion of the IndII Facility Management Team.
Monitoring and Evaluation
The IndII Facility PDD provides for:
The Managing Contractor to engage a specialist to prepare a program-level
Monitoring and Evaluation Plan (MEP), and thereafter to implement this using its
core team resources
AusAID to engage an Independent Assessment Team (IAT) to assess the
development effectiveness of the strategies and investments made by IndII, and the
appropriateness of the facility model and design in meeting the objectives of IFGI and
the Indonesia Country Program Strategy.
Preparation of the IndII MEP has taken longer than expected, in part due to staffing issues and
in part due to recognition that the Managing Contractors resources would be insufficient for
its envisaged role. To address the latter issue and accommodate additional monitoring and
evaluation work related to WSI, AusAID has agreed an increased budget for the M&E
specialist. The IndII M&E specialist has participated in the preparation of the WSI
Monitoring and Evaluation Framework for the urban water supply and sanitation components
(as included in the PDD).
Ongoing M&E for the IndII Facility program and for the WSI urban water supply and
sanitation components will be managed in an integrated manner by the Managing Contractor,
and it has been agreed that the scope of the IATs activities should also be expanded to
encompass these WSI components.
4. IAT STRUCTURE:
The core Impact Assessment Team will comprise a team leader with a strong macro-economic
perspective and an M&E specialist with strong experience in infrastructure programs. Both
are expected to have prior working experience in Indonesia and to be familiar with AusAIDs
approaches for monitoring and evaluation of facilities.

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The IAT will also involve other external experts as required (with selection having regard to
IndIIs sector/thematic focus), the AusAID Infrastructure Advisors (in-country, thematic
group), the AusAID Desk officer and other AusAID personnel as appropriate.
The IAT will team up and work closely from time to time with IndII M&E Specialist in
conducting each mission.
The team leader will be responsible for writing up the mission reports, with input as
appropriate from other IAT members.
5. IAT MISSIONS AND TIME FRAMES:
The IAT is expected to undertake up to three missions, namely in March 2010, in May/June
2010, and possibly in May 2011.
The third mission in May 2011 is subject to further discussion with AusAID pending results
of first and second mission.
6. FIRST MISSION (MARCH 2010)
The first mission will primarily evaluate the overarching management of the facility,
including:
1. Assess and make evidence-based recommendations about the functioning of Facility
management arrangements, specifically:
a. the efficiency and effectiveness of IndIIs management structure (including
the Board, Technical Team, AusAID, Managing Contractor);
b. whether the managing contractor is meeting its contractual requirements;
c. the quality of MC policies/guidelines and whether these are being
appropriately implemented (for example, the IndII Gender strategy);
d. the efficiency of activity identification and approval processes;
e. financial management of IndII activities;
f. how well WSI has been integrated into IndII management arrangements;
g. communication strategies employed by IndII (such as Prakarsa).
2. Review and provide comment/recommendations to AusAID on the M&E Framework
and on baseline surveys provided by the Managing Contractor. This review is also to
include:
a. whether the M&EF has struck the right balance between how the facility is
operating versus the outcomes of the facility;
b. whether IndII is sufficiently focused to be able to measure achievement of
objectives
3. During this mission, the IAT will be required to develop an evaluation plan for the
second mission to be conducted in May 2010 (see below, reporting requirements and
timetable for more information).
In undertaking this mission, the IAT will:
1. Review background documents listed in Annex A and inform AusAID of any
information or documents required prior to the mission (2 days);
2. Prior to arrival in Jakarta, prepare and submit an evaluation plan that outlines the
methodology for the first mission: including stakeholders to be interviewed,
additional documents required during the mission etc (1 day). This plan must be
submitted at least two working days prior to arrival in Jakarta.
3. Participate in an AusAID preliminary briefing session before the start of the incountry field visit (22 March 2010);
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4. Conduct meetings and assessments in Jakarta with relevant IndII stakeholders (9

days);
5. Brief AusAID of preliminary findings of the mission and provide a draft
evaluation plan for the second mission (and an outline work plan for the May 2011
mission) (1 day).
The final report should be prepared no longer than 10 pages and to be made ready
by the end of April 2010 (see below timetable for more information)
7. SECOND MISSION (MAY/JUNE 2010)
The second mission will conduct a Mid Term Review of IndII.
The Mid Term Review is expected to provide an analysis of:
1. A selection of IndII activities, specifically:
a. The appropriateness/relevance of these activities;
b. Whether these activities achieved their stated objectives and contributed
towards higher level objectives;
c. The likely outcomes and sustainability of these activities; and
d. How key AusAID policies such as gender equality, have been integrated and
implemented in IndII activities.
2. IndIIs place within the infrastructure sector, specifically:
a. IndIIs role in relation to other relevant work being done by GoI and donors
in the sector;
b. Whether IndII is supporting GoIs infrastructure priorities (as outlined in the
MTDP) at both the national and sub-national levels
c. Whether IndII is operating in the right sub-sectors: is this engagement
strategic, considering AusAIDs other infrastructure initiatives?
3. The strengths and weaknesses of the IndII Facility model vis--vis alternative
approaches AusAID could have taken to supporting infrastructure development in
Indonesia
4. The contribution of IndIIs model (including WSI) towards higher level country
strategy and IFGI objectives
This analysis is expected to provide a frank summary of the strengths and weaknesses of IndII
supported by evidence as well as lessons learned that would be relevant to any future phases
of IndII.
In undertaking this mission, the IAT will:
1. Review background documents requested during the first mission and outlined in
the evaluation plan (3 days);
2. Participate in an AusAID preliminary briefing session before the start of the incountry field visit ( 1 day);
3. Conduct meetings with a range of identified stakeholders and key GoI counterparts,
including field visits to local governments if necessary/included in the evaluation plan
(10-15 days);
4. Prepare an aide memoire and brief AusAID of preliminary findings of the review.
The IAT will discuss with AusAID the possibility of undertaking the third mission in
2011.
The final report should be prepared no longer than 20 pages and to be made ready
by approximately the end of June 2010 (see below timetable for more information)
8. THIRD MISSION
The third mission is tentatively scheduled for May 2011 to conduct (an optional) Independent
Completion Report or other possible monitoring mission subject to further discussion with
AusAID.
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9. REPORTING REQUIREMENTS
Following the first mission, the IAT will be required to:
1. Submit an assessment report that reviews and provides comment on:
a. The overarching management of the IndII Facility (covering all of the points
raised above),
b. The M&E Framework and baseline surveys provided by the Managing
Contractor;
2. Submit a detailed evaluation plan including the methodology for mission two
(May/June 2010). In preparing the evaluation plan for mission two, the IAT is
expected to consult with AusAID and:
a. Decide in consultation with IndII M&E Specialist, on a set of activities to be
reviewed during mission two. The activities will be chosen having regard to
the desirability of assessing performance by type of activity, by infrastructure
sector, and by type of partner/client (central, sub-national);
b. Agree with the IndII M&E specialist on the information to be made available
in order to permit the IAT to function efficiently (the intent will be to
maximize synergy while maintaining the integrity and independent of the IAT
role); and
c. Identify needs, if any, for supplementary specialist sector expertise required
for the mid term review during mission two.
These will be discussed with the AusAID infrastructure manager in Jakarta and thereafter will
be finalized within two weeks to reflect comments provided and agreements reached.
The report of the first mission is to be submitted to AusAID before the end of April 2010.
Following the second mission, the IAT will be required to:
1. Submit a draft Mid-Term-Review (using the AusAID reporting template) to AusAID
within two weeks of completing the field visit. AusAID may share this report with
and seek feedback from partner government and other key stakeholders as
appropriate.
2. Submit a final report within two weeks of receipt of AusAIDs final comments on
the draft. The report should be a brief and clear summary of the evaluation outcomes
and focus on a balanced analysis of issues faced by the Facility.
Should a third mission be undertaken, the IAT will be informed of reporting requirements
prior to arrival in country.

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10. TIMETABLE
Task and Expected Output
Days worked
Description
FIRST MISSION
(MARCH 2010)
Review background documents provided prior to the
Desk review
2

Remark

Due Date

Assessment methodology
and plan
Preliminary AusAID
briefing
In country assessment

Submitted to AusAID a week prior to the in country

mission for AusAID review and comments

Participate in an AusAID preliminary briefing

session before the start of the in country field visit

2 hours

In home
country
In home
country
In country

in country consultation process with relevant

partners and stakeholders

In country

Presentation of
Independent Assessment
findings
Draft report of Independent
Assessment

Initial findings of the assessment should be

presented to AusAID and to relevant key
counterparts and stakeholders where possible.

In country

22 Mar 1 April
2010
1 April 2010

In country

Mid April 2010

in country mission

Monitoring and evaluation

plan and methodology for
the MTR
Final Report of
Independent Assessment

2
(with two
weeks
interval for
comments)
Submitted to AusAID prior to the in country mission
3
Draft of report should be submitted in a format
agreed by AusAID and is circulated to the relevant
stakeholders and counterparts to seek feedback.

22 March 2010

In home
country

End of April 2010

In home
country

End of April 2010

15

Indicative in
May 2010
In home
country
In country

in May 2010 for AusAID review and comments.

The final report of assessment should cover the
following:

15 16 March
2010
18 March 2010

The functioning of IndII management

arrangement including with GoI
counterparts
The functioning of IndII facilities
Recommendations of IndII M&E
Framework

MID TERM REVIEW (THIRD MISSION) in country consultation process

with relevant partners and stakeholders
Review background documents provided prior the in
Desk review

country mission

Preliminary AusAID
briefing
Presentation of findings

Participate in an AusAID preliminary briefing

session before the start of the in country field visit

Draft report of the MTR

Draft of report should be submitted in a format

according to AusAID template for MTR.

Final Report of the MTR

and Aide Memoire

3
Final report of MTR should assess progress against
(with two
objectives; improving implementation quality;
and/or informing the design of any follow-on phases weeks
or new activities and incorporating provided
interval for
comments.
comments)

The collective impact of the IndII

engagements, unintended as well as
intended impacts and explore the extent to
which the total impact is greater than the
sum of the impacts of the individual SPS
and IEI engagements.

Provide independent information on

development effectiveness for IndII
AusAIDs reporting requirements based on
ODE development

Consider the extent to which this

Findings of the mission is to be presented to AusAID

and to relevant key counterparts and stakeholders
where possible

1
1

In country

In home
country
In home
country

Indicative in early
May 2010
Indicative before
mid May 2010
End of the 2nd
mission
indicative 2nd or 3rd
week of May 2010
Indicative in 1st
week of June 2010
Indicative 3rd week
of June 2010

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mechanism performed better than

alternatives in delivering on the GoI, IFGI
and other AusAID objectives.
Provide recommendation and
consideration to the decision on whether to
extend IndII facility and its Managing
Contractor.

Outline of evaluation plan If it is decided to do so, it should be submitted to

and methodology for ICR AusAID a week prior to the in country mission for
AusAID review and comments.
(optional)
INDEPENDENT COMPLETION REVIEW OPTIONAL (THIRD
MISSION)
Review background documents provided prior the in
Desk review

In home
country

Indicative 3rd week

of June 2010

15

In country

Indicative May 2011

Indicative early
May 2011
Indicative early
May 2011
At the end of
mission
indicative 2nd or 3rd
week of May 2011
Indicative end of
May 2011

Preliminary AusAID
briefing
Presentation of findings

Participate in an AusAID preliminary briefing

session before the start of the in country field visit

In home
country
In country

Findings of the mission is to be presented to AusAID

and to relevant key counterparts and stakeholders
where possible

In country

Draft report of the

Independent Completion
Review
Final report of the
Independent Completion
Review and Aide Memoire

Draft of ICR should be submitted to AusAID on a

format according to AusAID template for ICR.

In home
country

Final report should assess achievement of activity

objectives; accountability and effectiveness of the
aid activity; and what lessons can be learnt

In country

Indicative mid of
June 2011

Presentation of Aide
Memoire

Findings in the Aide Memoire to be presented to

AusAID and to relevant key counterparts and
stakeholders where possible
TOTAL DAYS WORKED

3
(with two
weeks
interval for
comments)
1

In country

Indicative mid of
June 2011

country mission

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ANNEX A
List of Key Documents
1. IndII Subsidiary Agreement (as amended)
2. IndII Facility PDD
3. Indonesia WSI PDD (urban water supply and sanitation components)
4. Revised procedures for preparation, review of activity requests, proposals and designs
5. Minutes of IndII Management Board Meetings
6. Minutes of IndII Technical Team Meetings
7. IndII Facility Review and Planning Documents
8. IndII Facility Monitoring and Evaluation Plan (August 2009)
9. Australia-Indonesia Partnership Country Strategy;
10. Discussion Paper: Design, Monitoring and Evaluation of Facilities

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