GPOBA W3 - Expanding Piped Water Supply to Surabaya's Urban Poor

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The objective of the Expanding Piped Water Supply to Surabaya's Urban Poor Project in Indonesia is to increase and sustain access to piped water networks for poor households living in both formal and informal areas of Surabaya. There are three components to the project. First component of the project is new connections. Three kinds of connections or 'outputs' are proposed as a means to achieving the delivery of water service for the urban poor: in-fill connections to existing mains, expansion connections to previously unserved areas, and bulk supply or 'master meter' connections for particularly poor, dense or informal communities not otherwise eligible for individual connections. The second component of the project is technical assistance for project implementation. To support the project implementation, two external auditors will be used: (1) an Output-Based Aid (OBA) auditor (a firm) will be hired by the scheme manager at an estimated cost of $95,000 over three years; and (2) a financial auditor will also be hired by the scheme manager to carry out an annual financial audit of the OBA designated account and of project financial management. In line with standard Bank practice in Indonesia for the World Bank financed projects, the project will use the government's financial and development supervisory board (Badan Pengawasan Keuangan dan Pembangunan, or BPKP). The third component of the project is the World Bank supervision. The World Bank staff will need to provide routine support to public water utility of Surabaya (PDAM) and the scheme manager during project implementation. Staff will periodically visit the sites to review progress with local authorities and assist in revising any project components or procedures, if necessary. Staff will also devote considerable time from Washington, DC and from Jakarta, Indonesia to monitor progress. Some of this budget will be used for training by the World Bank staff to build capacity of the implementing agencies, for example of the OBA scheme manager in procurement.