Indonesia Port-Led Development Project

dropped

The Eastern Indonesian Port-led Development Project targets to enhance logistics performance in Eastern Indonesia throughsustainable maritime infrastructure and services and private sector participation.To achieve this development objective, it isproposed that the project would have four main components, namely: (i) support for integrated development of the ports of Ambon andKupang and leveraging private sector financing; (ii) support for modernization and upgrade of selected outer islands ports inMaluku and Nusa Tenggara Timur (NTT) provinces; (iii) support for enhancing shipping connectivity between outer islands feederports and the hub ports of Ambon and Kupang; and (iv) institutional development and capacity building.The project implementationwill require multi-agency cooperation at various levels. Organizations at national level include the Ministry of NationalDevelopment Planning/National Development Planning Agency (Bappenas), Ministry of Finance (MoF), and Ministry of Transport (MoT).Coordination will need to involve Coordinating Ministry of Maritime Affairs and Investment (CMMAI), Ministry of Marine Affairs andFisheries (MMAF), and Coordinating Ministry of Economic Affairs (CMEA). At sub-national level, government entities include thelocal planning bureau (coordination of provincial activities), the local transport agency (responsible for local port planning,development and operation), and the local Environmental Impact Management Agency (environmental overview).Traditionally, projectsof this type would be implemented by MoT through the Directorate General of Sea Transport (DGST) serving as the project managementunit (PMU). However, the World Bank would like to explore the option for at least for some components and activities to be led byprovincial governments. These governments have already expressed their keen interest and commitment to the project. The optionto be explored would have sub-national governments of the provinces of Maluku and NTT establish the project management units (PIUs)with funding coming from MoF through on-granting and/or on-lending mechanism. PIUs at provincial level will be established withinexisting provincial agencies or by using the existing or creating a new sub-national government own enterprise (badan usaha milikdaerah, BUMD) which will be assigned to implement the project.