asian development bank...ii qtr.2000 iii qtr. 2002 staff development in-country-first contract iv...

ASIAN DEVELOPMENT BANK PCR: INO 27527

PROJECT COMPLETION REPORT

ON THE

ENGINEERING EDUCATION DEVELOPMENT PROJECT (Loan 1432-INO)

IN

INDONESIA

June 2004

CURRENCY EQUIVALENTS Currency Unit – rupiah (Rp)

At Appraisal At Project Completion (14 January 1996) (30 September 2002)

Rp1.00 = $0.000433 $0.000111 $1.00 = Rp2,307 Rp9,012

ABBREVIATIONS ADB – Asian Development Bank BAPPENAS – Badan Perencanaan Pembangunan Nasional (National

Development Planning Agency) BAN – National Accreditation Board BME – Benefit Monitoring and Evaluation CPIU – Central Project Implementation Unit DGHE – Directorate General of Higher Education D2 – diploma program of two year duration D3 – diploma program of three year duration EQAC – Engineering Quality Assurance Committee GDP – gross domestic product LPIU – local project implementation unit KADIN – Chamber of Commerce and Industry JICA – Japan International Cooperation Agency MIS – management information system MONE – Ministry of National Education PRF – Program Relevancy Fund PSC – Project Steering Committee REPELITA VI – Sixth Five-Year Development Plan (1994/95-1998/99) RRP – Report and Recommendation to the President S1 – academic degree equivalent to bachelor degree S2 – academic degree equivalent to master degree S3 – academic degree equivalent to doctorate degree

NOTES

1432. The fiscal year (FY) of the Government ends on 31 December. (ii) In this report, “$” refers to US dollars.

CONTENTS

Page

BASIC DATA ii MAP vii I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 2

A. Relevance of Design and Formulation 2 B. Project Outputs 2 C. Project Costs and Financing 5 D. Disbursement 6 E. Project Schedule 6 F. Implementation Arrangements 6 G. Conditions and Covenants 7 H. Consultant Recruitment and Procurement 7 I. Performance of Consultants, Contractors, and Suppliers 7 J. Performance of the Borrower and the Executing Agency 7 K. Performance of the Asian Development Bank 8

III. EVALUATION OF INITIAL PERFORMANCE AND BENEFITS 8 A. Relevance 8 B. Efficacy in Achievement of Purpose 9 C. Efficiency in Achievement of Outputs and Purpose 9 D. Preliminary Assessment of Sustainability 10 E. Institutional Development and Other Impacts 10

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 11 A. Overall Assessment 11 B. Lessons Learned 12 C. Recommendations 12

APPENDIXES 1. List of Project Institutions 14 2. Project Framework 15 3. Staff Development Program 19 4. Loan Disbursements 20 5. Implementation Schedule: Appraisal versus Actual 21 6. Status of Loan Covenants 22 7. Project Performance Rating Assessment 31

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BASIC DATA

A. Loan Identification

1. Country 2. Loan Number 3. Project Title 4. Borrower 5. Executing Agency 6. Amount of Loan

7. PCR Number

Indonesia 1432-INO (OCR) Engineering Education Development Project Republic of Indonesia Directorate General of Higher Education OCR : $102.0 million PCR:INO 815

B. Loan Data 1. Appraisal – Date Started – Date Completed 2. Loan Negotiations – Date Started – Date Completed 3. Date of Board Approval 4. Date of Loan Agreement 5. Date of Loan Effectiveness – In Loan Agreement – Actual 6. Closing Date – In Loan Agreement – Actual – Number of Extensions 7. Terms of Loan – Interest Rate – Maturity – Grace Period

4 September 1995 21 September 1995 4 December 1995 6 December 1995 6 February 1996 18 March 1996 7 May 1996 7 May 1996 1 October 2001 12 December 2002 1 Pool-based variable lending 25 years 5 years

8. Disbursements a. Dates Initial Disbursement

7 September 1996

Final Disbursement

12 December 2002

Time Interval

76 months

Effective Date

7 May 1996

Original Closing Date

1 October 2001

Time Interval

64 months

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b. Amount

Category or Subloan

Original

Allocation

Last Revised

Allocation

Amount

Canceled

Amount

Available

Net Amount Disbursed

Undisbursed

Balance Civil Works (including furniture)

16,644,000

5,977,840

10,666,160

0

5,977,840

0

Equipment 30,624,000 30,871,469 (247,469) 0 30,871,469 0 Instructional Materials

2,130,000

1,903,030

226,970

0

1,903,030

0

Staff Development

23,357,000 18,577,861 4,779,139 0 18,577,861 0

Consulting Services

5,849,000 3,100,499 2,748,501 0 3,100,499 0

Interest During Construction

16,302,000

10,961,357

5,340,643

0

10,961,357

0

Unallocated 7,094,000 0 7,094,000 0 0 0

Total

102,000,000

71,392,056

30,607,944a

0

71,392,056

0 a Includes partial cancellation of $22.3 million during implementation and $8.3 million of loan closing. 9. Local Costs (ADB-Financed) - Amount ($) 8,066,739 - Percentage of Local Costs 36.1 - Percentage of Total Cost 6.7 C. Project Data

1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 79.7 63.3 Local Currency Cost

96.3 56.8

Total Cost 176.0 120.1 2. Financing Plan ($ million)a Appraisal Estimate Actual Cost Foreign Local Total Foreign Local Total Implementation Costs Borrower-Financed 0.00 74.00 74.00 0.00 48.70 48.70ADB-Financed 79.70 22.30 102.00 63.30 8.10 71.40

Total Cost 79.70 96.30 176.00 63.30 56.80 120.10IDC Costs Borrower-Financed 0.00 0.00 0.00 0.00 0.00 0.00 ADB-Financed 16.10 0.00 16.10 10.96 0.00 10.96

Total Cost 16.10 0.00 16.10 10.96 0.00 10.96 ADB = Asian Development Bank; IDC = interest during construction. a The calculation is based on the exchange rate to the dollar of each fiscal year.

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3. Cost Breakdown by Project Components ($ million)

Appraisal Estimate Actual Component Foreign Local Total Foreign Local Total A. Base Cost 1. Staff Development

a. In-Country b. Overseas

0.000 14.800

15.400 0.000

15.400 14.800

0.000 14.487

4.794 0.000

4.79414.487

Subtotal 14.800 15.400 30.200 14.487 4.794 19.2812. Specialist Services

a. International b. Domestic

2.100 0.000

0.000 4.300

2.100 4.300

2.420 0.000

0.000 0.927

2.4200.927

Subtotal 2.100 4.300 6.400 2.420 0.927 3.3473. Facilities Development

a. Site Development b. Construction c. Design and Supervision d. Furniture

0.200 6.000 0.000 0.500

1.900 23.800

1.800 4.200.

2.100 29.800

1.800 4.700

0.110 2.016 0.000 0.557

2.831 28.646

2.300 1.279

2.94130.662

2.3001.836

Subtotal 6.700 31.700 38.400 2.683 35.056 37.7394. Equipment and Materials

a. Equipment b. Instructional Materials

30.600 2.100

7.600 1.400

38.200 3.500

30.872 1.903

0.997 0.148

31.8692.051

Subtotal 32.700 9.000 41.700 32.775 1.145 33.9205. Research Studies 0.000 0.500 0.500 0.000 0.259 0.2596. Special Programs 0.000 6.000 6.000 0.000 2.015 2.0157. Incremental Recurrent Cost 0.000 11.400 11.400 0.000 2.662 2.6628. Taxes and Duties 0.000 7.600 7.600 0.000 9.922 9.922 Subtotal A 56.300 85.900 142.200 52.365 56.780 109.145 B. Contingencies 1. Physical Contingencies 2.800 4.300 7.100 0.000 0.000 0.0002. Price Escalation 4.300 6.200 10.500 0.000 0.000 0.000 Subtotal B 7.100 10.500 17.600 0.000 0.000 0.000 C. Interest and Other Charges 16.300 0.000 16.300 10.961 0.000 10.961

Total (A+B+C) 79.700 96.400 176.100 63.326 56.780 120.106

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4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants IV Qtr. 1997 II Qtr. 1997 Civil Works Contract Date of Award IV Qtr. 1997 II Qtr. 1997 Completion of Work I Qtr. 2000 III Qtr. 2002 Equipment and Supplies Dates First Procurement III Qtr. 1998 IV Qtr. 1998 Last Procurement I Qtr. 2002 Completion of Equipment Installation and Operations

II Qtr.2000

III Qtr. 2002

Staff Development In-Country-First Contract IV Qtr. 1996 IV Qtr. 1996 Overseas-First Contract I Qtr. 1997 IV Qtr. 1996 Completion of Activities III Qtr. 2001 III Qtr. 2002 Special Programs Prepare Program Details III Qtr. 1997 II Qtr. 1997 First Program Relevancy Fund II Qtr. 1997 I Qtr. 1997 First Student Support III Qtr. 1997 II Qtr. 1999 Completion of activities III Qtr. 2001 IV Qtr. 2001 Source: Asian Development Bank records 5. Project Performance Ratings

Rating Implementation Period

Development Objective Implementation Progress

From 6 Dec 1996 to 23 Sep 1997 Highly Satisfactory Highly Satisfactory From 2 Oct 1997 to 24 Apr 1998 Highly Satisfactory Highly Satisfactory From 1 May to 19 Aug 1999 Satisfactory Satisfactory From 3 Sep 1998 to 28 Jun 1999 Satisfactory Satisfactory From 1 Jul 1999 to 24 Feb 2000 Satisfactory Satisfactory From 2 Mar to 5 Dec 2000 Satisfactory Satisfactory From 8 Dec 2000 to 6 Sep 2001 Satisfactory Satisfactory From 12 Dec 2001 to 18 Feb 2002 Satisfactory Satisfactory From 13 Mar to 28 Aug 2002 Satisfactory Highly Satisfactory From 12 Sep 2002 to 5 Nov 2003 Satisfactory Satisfactory D. Data on Asian Development Bank Missions

Name of Mission

Date

No. of Persons

No. of Person-Days

Specialization of Membersa

Fact-Finding 11–31 May 1995 3 60 g,j Appraisal 4–12 Sep 1995 7 112 c,d,e,g,j Inception 2–6 Dec 1996 1 4 e Review-1 23 Sep–2 Oct 1997 2 18 e,i Review-2 24 Apr–1 May 1998 4 12 e,g,h Mid-Term Review 19 Aug–3 Sep 1998 4 30 e,g,h Review-3 28 Jun–1 Jul 1999 3 9 d,e,f

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Review-4 24 Feb–2 Mar 2000 2 12 g,h Review-5 5–8 Dec 2000 2 8 g,h Review-6 6–12 Sep 2001 2 20 g,h Reviwe-7 18 Feb–13 Mar 2002 2 28 b,h Review-8 28 Aug–12 Sep 2002 2 8 b,h Project Completion b 5 Nov–10 Dec 2003 3 15 b,h,j Note: a a-manager, b-sector specialist, c-counsel, d-programs officer, e-education specialist, f-assistant project analyst, g-

project impl, officer, h-project officer, I-technical assistant, j-consultant. b The project completion report was prepared by S.A. Chowdhury, principal sector specialist; D. Prijomustiko, project

officer; and Ajit Battacharya, staff consultant. E. Related Loans For the same Executing Agency (Directorate General of Higher Education) Loan No. Project Title Date of

Approval Amount

($ million) 244-INO Surabaya Institute of Technology 17 Dec 1975 14.5 402-INO University of Hasanuddin 21 Jun 1979 26.0 525-INO University of North Sumatra 24 Sep 1981 50.0 737-INO University of Sriwijaya 7 Jun 1985 37.9 984-INO/985-INO (SF) Marine Science Education 4 Nov 1988 73.3 1013-INO Six Universities Development and

Rehabilitation 8 Mar 1990 114.0

1253-INO Higher Education 21 Sep 1993 140.0 1792-INO Technological and Professional

Skills Development Sector 29 Oct 2000 180.0

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I. PROJECT DESCRIPTION

1. On 6 February 1996, the Asian Development Bank (ADB) approved a loan of $102 million to the Government of Indonesia for the Engineering Education Development Project (the Project). The Project’s objectives were to (i) improve the quality and relevance of engineering and technician education, (ii) enhance access and participation of economically disadvantaged but qualified students, and (iii) strengthen institutional capacity of engineering and technical education. Teaching graduates to master relevant skills, knowledge, and work attitudes so they could improve national competitiveness was a key focus.

2. Poor quality control of study programs and the lack of relevance of courses were identified as two major weaknesses in engineering education. The Project made establishing quality mechanisms to assess program characteristics a priority. It focused on matching appropriate curricula with the industry’s demands, including the provision of adequate teaching and laboratory equipment, and upgrading staff qualifications. The Project supported the Government’s "link and match" policy for engineering education, which aimed to work with local industry and develop appropriate curriculum based on the expressed needs of industry. The partnership developed through these relationships promoted cooperative work-and-study programs that provided students with valuable work experience in an industrial setting and the institutions with appropriate feedback for designing academic programs.

3. The Project established 10 new engineering programs—six professional and four diploma—in five universities. The University of Mataram and University of Lampung had new bachelor-level programs in electrical engineering and mechanical engineering. At University of Riau, a new bachelor-level program in chemical engineering and two new 3-year diploma programs in electrical and mechanical engineering were established. Two new 3-year diploma programs in electrical and mechanical engineering were established at University of Tadulako, while one new bachelor-level program in electrical engineering was established at University of Andalas. By establishing these 10 new programs, the Project created 2,500 bachelor-level and 500 3-year diploma student slots to study engineering in the project universities.

4. In addition, the Project strengthened the engineering faculties at seven universities: Udayana University, Denpasar, Bali; University of Mataram, Lombok, West Nusa Tenggara; University of Riau, Pekanbaru, Riau; Gadjah Mada University, Yogyakarta; University of Andalas, Padang, West Sumatra; University of Tadulako, Palu, Central Sulawesi; and Universitas Lampung, Lampung.

5. The Project also upgraded seven polytechnics in Tanjungpura, Mulawarman, Pattimura, Udayana, Nusa Cendana, Lambung Mangkurat and Sam Ratulangi with 22 3-year diploma programs in engineering. This put them on the same level with other engineering polytechnics in the country offering 3-year diploma programs.

6. To support e-learning, research, and engineering study programs, the Project provided an information and communication technology (ICT) facility to all supported institutions. With this new capacity, students and teachers could explore new frontiers of knowledge and information.

7. The project institutions were selected to achieve geographic distribution, equitable access, and greater participation. Selection also was based on each institution’s potential to contribute to the local and national economy. Appendix 1 provides a list of project institutions.

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8. The Project trained 4,407 academic staff, including providing postgraduate qualification from overseas universities. The fellows were drawn from project universities and polytechnics, as well as from private universities offering engineering programs.

9. Benchmarking, curricular reforms, quality assurance and accreditation, institutional networking, and establishing links between institutions and the industry achieved system-wide improvements in engineering education.

10. The Project strengthened the institutional capacity of Directorate General of Higher Education (DGHE) to plan and manage engineering education by (i) establishing a quality-assurance framework, (ii) institutionalizing course and curricular reform and updating process, (iii) strengthening the management information system (MIS), and (iv) establishing a database for public and private engineering education. As a result, DGHE has the capacity to measure the impact of investment in engineering programs, its cost effectiveness, and internal and external efficiencies.

II. EVALUATION OF DESIGN AND IMPLEMENTATION

A. Relevance of Design and Formulation

11. The Project was designed within the framework of the Government's Sixth Five-Year Development Plan (known as REPELITA VI) for FY1994/95–FY1998/99 and its long-term development plan of higher education in engineering. Before and after the completion of the Project, the Government's strategy was consistent and relevant.1 The key elements for improving and expanding engineering education remained (i) the provision of physical facilities, equipment, learning materials, staff development, and institutional strengthening; (ii) the development of new academic programs, and the revision and updating of curricula; and (iii) the improvement of the internal and external efficiency of engineering education. Project goals, objectives, outputs, inputs, activities, and implementation arrangements were clearly articulated and documented. Overall, the Project design was relevant and its formulation was considered sound.

B. Project Outputs

12. The Project had three main outputs: (i) improved quality and relevance; (ii) enhanced capacity, access, and participation; and (iii) strengthened institutional capacity. Details of the Project’s key components, outputs, and achievement are in Appendix 2.

1. Improved Quality and Relevance

13. For quality assurance in engineering education, a quality assurance hand book was developed under the Project. The handbook was distributed to all project institutions and other institutions of higher education that offer engineering programs. In addition, the National Accreditation Board (BAN) was charged with providing quality assurance and accreditation to engineering education programs in public and private universities and polytechnics. The BAN ensured that validation and accreditation panels complete assessments in accordance with published procedures. Each assessment panel comprised relevant specialists in civil, electrical, mechanical, or chemical engineering. While DGHE provided administrative and secretarial

1 Directorate General of Higher Education, Ministry of National Education. 2002 (updated). Long-Term Development

Strategy for Higher Education 1996–2010. Jakarta.

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support, it was not represented on the committee to ensure the independence of the quality assurance process.

14. To carry out the procedures and determine skill standards in different disciplines, international consultants were engaged to prepare manuals on quality assurance. In addition, senior academics from polytechnics and universities received training overseas on the development of a quality framework for the assessment of engineering education. With the participation of the industry, a benchmark was developed for industrial skills requirements.

15. The Project established a Program Relevancy Fund (PRF) to intensify and encourage industry-institution links. The objective was to develop innovative programs in partnership with local industry and to improve the relevance of engineering programs. Innovative programs were directed toward (i) reviewing and revising engineering education programs to match the changing pattern of engineering study and practices; (ii) satisfying local, regional, and national needs; (iii) developing flexible and adaptable programs for the expressed needs of the industry; (iv) reviewing and reforming the curricula in engineering education at the professional and technician engineering levels; and (v) ensuring engineering education remained relevant to practicing engineers and technicians in industry. The fund was available to engineering faculties in universities and polytechnics in the public and private sectors. The scope of the fund was broad, allowing educational institutions to identify and propose initiatives. The overriding factor was the continuing relevance of engineering education to market needs. Each submission was judged on its merits, leading to the implementation of 321 research proposals from universities and polytechnics on a competitive basis. Examples of topics covered included: industrial innovation and the development of woodcraft manufacturing at University of Gadjah Mada, the development of bamboo engineering education at University of Mataram, curriculum revision in mechanical and electrical engineering and, sea fish processing at Politechnic Negeri Kupang, and information system design at University of Udayana. Industry and local governments established an effective partnership. Industry is involved with the academics at project universities and polytechnics, working in policy, management, operation, and research and development. For example, multinational companies are involved in the University of Riau’s engineering study programs.

16. The course and curriculum development program was designed to generate expertise in task and equipment analysis for the development of an industry-validated curriculum. An important element of this program was studying “best practices” in a number of countries to establish benchmarks. The Project established senior academic benchmarking teams in seven engineering disciplines (civil, architectural, mechanical, electrical, electronics, chemical, and industrial engineering) to study the best teaching and learning practices in leading universities of Europe, North America, Japan, and Singapore. The teams studied engineering-specific areas, such as manufacturing, systems engineering, computer-aided engineering, and environmental engineering, as well as aspects of work-based learning and engineering education psychology. Following the benchmarking study, a series of workshops were held to promote the participation of engineering teachers in all public and private institutions.

17. The Project introduced revised course curricula for professional engineering and technician education. In addition, the laboratory and associated equipment necessary to deliver updated engineering programs were identified, installed, and commissioned. The equipment procured under the Project was environmentally acceptable and consistent with the principle of sustainable development.

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18. The private institutions of engineering education benefited indirectly from the system-wide improvements, the establishment of a quality framework, the course development program, and institution-industry links, as well as the use of machines and equipment. In addition, the Project supported an in-country master fellowship program involving 132 academic staff in civil, mechanical, electrical, and chemical engineering.

19. Improved curriculum and education facilities (including appropriate equipment) enhanced the capacity of engineering graduates to master necessary skills, knowledge, and work attitudes through competency–based accreditation and registration procedures. Strengthened institutional/technical capacity of DGHE led to better planning and management of engineering education as noted by Initial, Midterm and Project completion surveys, project progress reports and Bank Review Missions.

20. Significant assistance for staff development in public and private institutions was a key achievement of the Project. Academic staff of public and private universities and polytechnics received 3,174 person-years of training within the country and 575 person-years of overseas fellowships. The staff development program was based on identified needs and availability of staff. The Government submitted to ADB for approval detailed criteria and procedures for the selection of candidates for fellowships and short-term staff training programs, together with details of training programs, venues for training, and financial terms and conditions. Appendix 3 provides a breakdown of the staff development program.

2. Enhanced Capacity, Access, and Participation

21. To expand engineering education capacity, the Project supported the establishment of six new professional programs and four new diploma programs in five universities. New bachelor-level programs in electrical engineering and mechanical engineering were established at the University of Mataram, located in an area that showed substantial potential and considerable need for graduates in those disciplines; and University of Lampung, located where the demand for engineers is high. A new bachelor-level program in chemical engineering as well as new 3-year diploma programs in electrical and mechanical engineering were established at University of Riau, which is in a developing growth triangle with petroleum- and chemical-based industries and potential demand for manufacturing-based industry. New 3-year diploma programs in electrical and mechanical engineering were established at University of Tadulako, an area that showed high potential and demand for engineers. A new bachelor-level program in electrical engineering was established at the University of Andalas, a fast-developing region in tourism and industry. By adding the 10 new study programs, the Project created slots for 2,500 bachelor-level and 500 3-year students to study engineering courses in the universities.

22. The Project improved the quality of teaching and learning in engineering by upgrading the faculty at seven universities: Udayana University, Denpasar, Bali; University of Mataram, Mataram, Lombok, West Nusa Tenggara; University of Riau, Pekanbaru, Riau; Gadjah Mada University, Yogyakarta; University of Andalas, Padang, West Sumatra; University of Tadulako, Palu, Central Sulawesi; and University of Lampung, Lampung. This covered eight bachelor-level programs (5 in civil engineering, 1 in mechanical engineering, 1 in electrical engineering and 1 in architecture) and five diploma programs (2 in civil engineering, 1 in mechanical engineering, 1 in chemical engineering, and 1 in electrical engineering).

23. The Project also upgraded the technician engineering education in seven polytechnics at Tanjungpura, Mulawarman, Pattimura, Udayana, Nusa Cendana, Lambung Mangkurat and Sam Ratulangi universities. This covered 22 engineering diploma programs (7 in civil engineering, 7

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in mechanical engineering, 7 in electrical engineering, and 1 in chemical engineering) in the polytechnics. As a result, the quantity and quality of technician engineers increased to meet the needs of the labor market, and raised the quality of all public sector polytechnics to the same level as a 3-year diploma-granting institution. Under this component, more than 4,000 slots for 3-year diploma students were created in the seven polytechnics.

24. Engineering education capacity was increased by establishing new undergradute programs in electrical and mechanical engineering at University of Lampung, Lampung and University of Mataram, and in electrical engineering at University of Andalas and new 3-year diploma programs in mechanical and electrical engineering at Unviersity of Riau and University of Tadulako, and in chemical engineering at Polytechnic of Samarinda.

25. New facilities and study programs increased capacity significantly. For example, enrollment capacity per year for S1 programs in electrical engineering increased by 450 students, for S1 programs in mechanical engineering by 300 students, for D3 programs in civil engineering by 480 students, for D3 programs in mechanical engineering by 480 students, for D3 programs in electrical engineering by 480 students, and for D3 programs in chemical engineering by 96 students. An additional 4,000 student slots were created in 3-year polytechnic diploma programs.

26. The student loan scheme was converted into a scholarship scheme due to the impact of the regional economic crisis that began in 1997. The Project provided 27,497 student grants to economically disadvantaged engineering students. A family means test was administered to participants, who also needed to satisfy appropriate academic criteria, including a demonstrated aptitude for engineering study.

3. Strengthened Institutional Capacity

27. The Project established the capacity for computer-aided programs in engineering. Project institutions were provided with software, hardware, and accessories, as well as a server, receiver, installation, and terminal. As a result, students are able to surf worldwide websites for up-to-date information on relevant subjects. With additional ICT capacity provided to all project institutions, they are able to network among themselves and with overseas institutions to improve the quality of engineering study programs.

28. More than 20,000 engineering students, who received higher quality engineering education at the seven universities and seven polytechnics, were the direct beneficiaries of this Project. The public and private universities and polytechnics benefited directly and indirectly from the system-wide improvements that resulted from (i) DGHE’s improved management capability, (ii) the establishment of a quality framework, (iii) the course and curriculum development program, and (iv) improved course relevance. Upgrading the quality and expanding the reach of engineering education also improved regional equity. The capacity to deliver engineering education increased through the addition of 7,000 new student slots.

C. Project Costs and Financing

29. ADB approved the loan for $102.0 million, but reduced it to $79.7 million through spring cleaning exercises that cancelled surplus loan proceeds in 1998–2001. At closing, additional $8.3 million in surplus loan proceeds were canceled. The reduced loan amount did not affect significantly the project scope, since the strengthening dollar resulted in substantial gains when using loan proceeds to procure local goods.

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30. A summary of the Project’s appraisal and actual financing plans and costs is shown in Table 1. Details of the appraisal and actual costs by component are shown in the Basic Data section.

Table 1: Appraisal and Actual Financing Plans and Costs ____________________________________________________________________________ ___ Appraisal Estimate __ Actual ___________ Source Foreign Local Total Foreign Local Total _____________________________________________________________________________________________ Borrower-Financed 0.0 74.0 74.0 0.0 48.7 48.7 ADB-Financed 79.7 22.3 102.0 63.3 8.1 71.4 Total 79.7 96.3 176.0 63.3 56.8 120.1 _____________________________________________________________________________________________ADB = Asian Development Bank. D. Disbursement

31. The first disbursement of $1.0 million was made on 7 September 1996. The last disbursement of $6.4 million was made on 12 December 2002 (Appendix 4).

E. Project Schedule

32. The original loan closing date of 12 December 2002 was extended by 1 year, due partly to the financial crisis of 1997/1998 that delayed project implementation. Tendering and procurement of furniture was on time. However, procurement of equipment was delayed due to the impact of the economic crisis. The last shipment was received in the 5th year of the Project. While the in-country training was implemented as planned, overseas training encountered problems as the selected candidates had difficulty attaining the required English language proficiency.

33. Construction of new classrooms and laboratories at 13 project sites was completed nearly on time. However, delays in releasing local counterpart funds postponed the construction of Samarinda Polytechnic. Civil unrest in Ambon in 1998 severely damaged the development work at Polytechnic of Ambon. When peace returned to the island, the Government fully restored the damage at an estimated cost of $3.0 million. Appendix 5 compares the original schedule with the actual implementation of the major activities.

F. Implementation Arrangements

34. In general, the Project was implemented as envisaged at appraisal. The Central Project Implementation Unit (CPIU) managed the Project. The CPIU was responsible for all aspects of implementation, including (i) engagement and supervision of architectural and engineering specialists for the design, tendering, and construction supervision of civil works; (ii) procurement of equipment, furniture, books and instructional materials; (iii) implementation of fellowships and other staff-development programs; (iv) engagement and management of specialist services; and (v) execution of the PRF and Student Grant Scheme. Local project implementation units (LPIUs) established at each Project institution assisted the CPIU. A Project Steering Committee (PSC) was established to give policy guidance to the CPIU, oversee project implementation, and coordinate with other agencies. As envisaged at appraisal, the PSC met regularly.

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G. Conditions and Covenants

35. Nearly all the important loan covenants were complied with. However, the establishment of the Engineering Quality Assessment Committee (EQAC) was reoriented to function under the umbrella of Badan Akreditasi Nasional (BAN), or the National Accreditation Board. The Student Financial Assistance Scheme was converted to a grant scheme with ADB approval. The status of compliance with covenants is in Appendix 6.

H. Consultant Recruitment and Procurement

36. International and domestic consultants were selected and engaged in accordance with ADB’s Guidelines on the Use of Consultants. Consultants came in two categories: academic and project management support. Eleven international academic specialists provided 138 person-months of consulting services. The distribution was: 1 quality assurance specialist (24 person-months); 1 engineering education specialist (36 person-months); 4 equipment specialists each for civil, electrical, mechanical, and chemical engineering (24 person-months); and 4 engineering curriculum specialists (48 person-months), and 1 student loan program specialist (6 person-months). Similarly, 12 national academic specialists provided 300 person-months to complement the international consultants. The distribution was: 3 quality assurance specialists (144 person-month), 1 engineering education specialist (36 person-months), 4 equipment specialists (24 person-months), and 4 engineering curriculum specialists (96 person-months). In project management services, seven domestic specialists contributed 324 person-months of consulting services. The distribution was: 1 project management specialist and team leader (60 person-months), 1 construction management specialist and deputy team leader (60 person-months), 1 fellowship specialist (60 person-months), 1 benefit monitoring and evaluation specialist (60 person-months), 1 financial management specialist (60 person-months), and 2 procurement specialists (24 person-months)

I. Performance of Consultants, Contractors, and Suppliers

37. Overall, the performance of the consultants was satisfactory. Minor changes in the timing for their deployment were accommodated with the approval of ADB. The quality of site preparation, building construction, and location was generally satisfactory. However, the Project Completion Review Mission noted water leaks in the roofs and cracks in buildings at a number of sites. However, the Mission was told that a budget already had been allocated for the repair work.

38. The equipment procured was generally good quality, environmentally suitable, and in line with the standards required in local industry. The equipment was kept in good working condition.

39. The performance of the academic consultants was very satisfactory. They initiated and implemented curricular reforms, and established the quality assurance in engineering study envisaged at appraisal. DGHE published the consultants’ reports and widely disseminated them among engineering institutions.

J. Performance of the Borrower and the Executing Agency

40. Well-qualified and experienced personnel staffed the CPIU and LPIUs. Because DGHE had experience in handling the implementation of loans from multilateral assistance agencies,

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the performance of the Borrower and Executing Agency (EA) was very satisfactory. Key members of the project staff were employed full time.

K. Performance of the Asian Development Bank

41. The performance of ADB was satisfactory during project preparation and implementation. ADB maintained a cordial relationship with DGHE, and continued policy dialogue on institution-industry links, institutional networking among engineering universities and polytechnics, increased cost recovery, and institutional sustainability. Project implementation accelerated after its delegation to the Indonesia Resident Mission.

1. Project Preparation and Appraisal

42. Successive project preparation missions carried out policy dialogue on engineering education in the country. The Project’s preparation, appraisal, and loan effectiveness were accomplished in normal time. All project components were found to be technically sound and implemented successfully. However, the original student loan scheme component was revised to a student grant scheme due to the impact of financial crises of 1997.

2. Project Supervision

43. ADB's project supervision was satisfactory. The number and frequency of the missions during project implementation were adequate. The assistance provided by ADB missions contributed significantly to Project’s successful implementation, particularly in the timely (i) approval of consultant services, (ii) adjustments of person-months in staff development, (iii) replacement of the student loan scheme with the student grant scheme, (iv) approval of the adjustment in site and new construction, and (v) technical assessment of consultants’ inputs. In addition, ADB supported, and provided technical inputs to, a series of discussions and workshops on project sustainability. The EA appreciated ADB’s performance in supervising the use of loans, providing guidelines on procurement, and assisting in solving problems encountered during implementation.

III. EVALUATION OF INITIAL PERFORMANCE AND BENEFITS

A. Relevance

44. The Project was relevant and designed within the framework of ADB’s operational strategy to meet the Government’s development objectives at the time of appraisal. It contributed to balanced regional development by expanding the capacity of engineering universities and polytechnics through the provision of new and updated facilities and staff training at 14 locations. All these institutions are functioning well upon completion.

45. The private and public sector have established links through the appointment of private sector representatives to the accreditation committee, advisory committees of the institutions, and student placement service.

46. Industry was involved in the revision and updating of curricula and teaching materials, as well as the verification of students’ competencies. This cooperation contributed to developing effective course curricula relevant to industry’s needs.

9

47. The overseas and in-country fellowship training programs provided by the Project to upgrade the quality of teaching, research, and institutional management were found to be extremely relevant to the needs of the institutions and their study programs.

48. The resources and assets provided to project institutions, including modern equipment, books, and instructional materials, were relevant to their needs. Most institutional libraries are well-stocked and aided by computers, with an adequate number of textbooks, CD-Roms, and reference materials in engineering disciplines.

49. Based on these considerations, the Project is rated highly relevant.

B. Efficacy in Achievement of Purpose

50. Most of the appraisal targets were met, and some were exceeded, including those for the staff development program. The 14 project institutions were functioning well. In addition to the system-wide improvements, these institutions are characterized by effective programs, student attendance, active staff participation, utilization of classroom, laboratory and workshop equipment, advisory committees, and industry liaisons.

51. The Project achieved all key appraisal targets in an efficacious manner:

(i) Construction and rehabilitation work was carried out on 14 project institutions, including furniture, provision of laboratory and workshop equipment, and instructional materials;

(ii) Staff development programs (overseas and in-country) were implemented on time, and the target was exceeded;

(iii) Academic consultants and project management consultants (domestic and international) were engaged and completed their services;

(iv) Revised curricula and study programs were developed (including teaching equipment and instructional materials) on time;

(v) Special programs and research studies were conducted on time;

(vi) DGHE’s management and planning capacity was strengthened with trained staff and equipment, including information technology facilities to facilitate the decision-making process.

52. By bringing key resource areas—facilities, equipment, and student and upgraded teaching staff—under improved managerial control, the cost effectiveness of the institutions improved substantially.

53. Overall, the Project is rated efficacious.

C. Efficiency in Achievement of Outputs and Purpose

54. The project scope, outputs, and activities generally remained unchanged during implementation. Some minor adjustments were made to increase the efficiency without altering the contract value. The Project provided a firm foundation for the development and

10

strengthening of engineering education by increasing the capacity of the university and polytechnic system to produce better trained and capable engineers and technicians. Higher efficiency was achieved by (i) developing skill standards and procedures in engineering education based on published guidelines prepared by the Project, (ii) upgrading specific engineering courses and curricula to meet the needs of the local government and industries, (iii) establishing institution-industry links to improve the supply and demand of skills, (iv) improving staff qualifications, (v) strengthening and upgrading selected university engineering departments and polytechnics at locations where demand for a specific skill existed, (vi) establishing new university engineering programs for regional development and for higher productivity, (vii) assisting private engineering institutions through staff development and training, (viii) establishing a student financial assistance scheme for providing grants to economically disadvantaged students, and (ix) strengthening DGHE’s institutional capacity to plan and manage engineering education at the national level.

55. The geographic distribution of institutions supported the demand for middle- and higher-level skilled personnel. All institutions supported by the Project were established near moderately populated urban areas in industrializing zones of the country. The Project promoted participation by women in engineering education by increasing the capacity of schools where industry support services had high female enrollments.

56. The reduced time taken for students to graduate and the higher absorption of engineering graduates in the labor markets were two indications of improvements in the internal and external efficiency of engineering education.

57. Based on these criteria, the Project is rated highly efficient.

D. Preliminary Assessment of Sustainability

58. Sustainability was given careful attention in designing the Project. One innovation in the project design was promoting income-generating activities in the institutions to enhance sustainability and to develop entrepreneurial skills among students. Project institutions have increased their earning potential from activities such as increased student fees, consultancy work, and operating short, specific courses for industries and local government. To enhance the Project’s sustainability in the selected institutions, a series of discussions and workshops were held in Jakarta in 2002. The output was a sustainability plan that is being used by the project institutions. The plan covers business planning, defining objectives, strategy, conducting strength, weakness, opportunity and threat (SWOT) analysis, human resource planning, quality assurance planning, financing, and capital expenditures. Each institution has committed substantial earnings to the steady operation of project facilities and assets. A senior staff member was appointed to oversee the sustainability plan, including the allocation of funds, resource mobilization, and cooperation with industries and local government.

59. On balance, the Project’s sustainability is rated most likely.

E. Institutional Development and Other Impacts

60. The Project improved the management capability of DGHE by establishing (i) a quality assurance framework, (ii) the course and curriculum development and review process, and (iii) improved course relevance. Engineering students at the seven universities and seven polytechnics, including eligible female students, are receiving higher quality engineering education. Staff development programs significantly improved teaching and research capability

11

in public and private institutions. Upgrading and expanding engineering education study programs improved regional equity in development. In addition, the capacity to deliver engineering education increased substantially through adding new student slots in regions where demand for engineering graduates exists. The Project is considered highly effective in providing substantial opportunities for quality engineering education that contribute to the national economy.

61. The institutional development is rated as substantial.

IV. OVERALL ASSESSMENT AND RECOMMENDATIONS

A. Overall Assessment

62. The Project was well conceived and generally implemented as designed. However, the Project was designed and appraised prior to the 1997 economic crisis that affected Southeast Asian countries. As a result, some of the cost estimates from the appraisal report became irrelevant and had to be revised. Despite the reduced cost, all project components and activities were successfully implemented, and some were exceeded. In addition, a new element of ICT was introduced later during implementation that added value to the Project.

63. Overall, the Project improved the relevance, quality, and capacity of engineering education in the country. Although project inputs were targeted mainly at the 14 selected institutions, the quality and relevance of engineering education was affected system-wide. The Project made significant contributions to developing engineering education by (i) establishing a quality assurance framework, (ii) benchmarking engineering teaching and learning practices, (iii) overhauling the curricula to meet the needs of the industry, (iv) developing effective institution-industry links, (v) fostering meaningful partnerships between public and private institutions, and (vi) creating networks among the engineering institutions to share experience and resources. DGHE estimates that the Project has established a strong foundation for engineering education in the country, and its ability to produce higher quality engineers and technicians who will contribute to national competitiveness will demonstrate its long-term impact.

64. The Project developed 10 new engineering study programs and strengthened seven existing programs in seven project universities with modern laboratory facilities, computers, books, and instructional materials supported by well-qualified staff. Through the new and strengthened programs, 3,000 new student slots were created. The Project also upgraded 22 engineering diploma programs in seven polytechnics from 2-year to 3-year programs to meet the higher qualification requirements of the industry. These universities and polytechnics are in areas of high market demand. Benefit monitoring and evaluation (BME) studies carried out by project institutions indicate easy absorption of their graduates, most in less than six months of graduation.

65. In addition to enhancing geographic equity—most sites are in Eastern Indonesia—the Project also fostered social equity. More than 27,000 students from poor families, including 1,300 women, received scholarships to study engineering in universities and polytechnics (project and non-project institutions). These students were academically competent, but would not have been able to progress due to poverty.

66. In the last year of project implementation, all rectors and deans of engineering faculties and directors of polytechnics participated in a series of discussions and workshops at DGHE to ensure project sustainability. A sustainability plan for each institution was developed out of

12

these discussions. This was preceded by their visit to Australia and North America to study faculty management and planning, income generation, and resource management. The sustainability plan covers revenue generation and planned maintenance of academic assets and facilities. Project institutions also established a network to share best practices in the academic domain and in capacity building in financial management.

67. The Project is rated as highly successful based on its relevance, efficiency and efficacy, institutional development (including its long-term positive impact on the society and economy), and high likelihood of sustainability (Appendix 7).

B. Lessons Learned

68. The PRF has been one of the must successful activities of the Project. Future education projects dealing with the economic development of the country should involve the Government, industry, and educational institutions as partners from project design to implementation

69. Education project design should have some flexibility built in to anticipate changes in input or technology. The flexibility in the design of this Project made inclusion of the ICT component possible.

70. A good sustainability plan, supported by budgetary resources, should be included in project design.

71. The deployment of international and domestic consultants should be synchronized to maximize the benefit from their inputs.

72. The Project must draw up a written plan of action and activities for those returning from overseas fellowship programs, so they understand what they are expected to do when they are back in the country.

73. Leadership can be a key factor in the effective execution of the Project. In-house seminars and workshops should be conducted to improve the leadership capacity of project personnel.

74. Centralized procurement of equipment, instructional materials, textbooks, and other related items is efficient only if the coordination and cooperation with the users is effective. Otherwise, decentralized or individual procurement by each beneficiary institution of these items should be considered.

C. Recommendations

1. Project-Related

75. The maintenance and repair of laboratory equipment, particularly that procured under the Project, must be monitored. Each institution should be required to keep an up-to-date record of the equipment status. Those that need attention should be dealt with immediately, and a budget must be in place for spare parts, accessories, preventive maintenance, and personnel training. Although some institutions have established good practices in this area, others should establish maintenance and repair programs immediately. DGHE should monitor this program.

13

76. The supply of power to an institution is crucial to the operation of study programs, particularly computer-aided programs. Institutions should consider using generators as a temporary measure, and taking the necessary precautions to protect equipment from power surges and electrical or thunder storms. DGHE should monitor their actions.

77. All academic publications should be preserved in the library for dissemination to other users. This includes research, studies on productivity improvement and design improvement, and other analytical work. Project institutions should ensure that this practice is established and sustained.

78. Job counseling, guidance, and placement services should be provided in all institutions. In addition, updated tracer studies (from BME) should be available in each university and polytechnic. A list of employers, including their products and services, also should be available in the institution. DGHE should ask all project institutions to establish the needed facilities and practices.

2. General

79. A market analysis of demand and supply of technical personnel in the country would be useful in planning engineering education programs in terms of numbers and expertise in specific fields of engineering. If possible, this should be broken down by regions or provinces. DGHE should undertake this analysis.

80. Skill standards and certification should be field tested, validated with the industries, and updated and revised regularly. In cooperation with the Chamber of Commerce and Industry and professional association of engineers. DGHE should initiate and implement this program.

81. Cooperation in engineering education with regional and developed countries should be promoted to achieve international standards. This would contribute to national competitiveness by (i) providing an opportunity for training and re-training of qualified engineering professionals, (ii) exchanging engineers, and (iii) establishing links with international engineering networks. With the cooperation of DGHE, engineering faculty should initiate this cooperation.

82. Initiatives for cooperative resource sharing among universities, polytechnics, and industry might receive support. This likely would improve the quality and efficiency of engineering education. DGHE should adopt and promote this policy.

83. A project performance audit report should be prepared in or around 2006.

14 Appendix 1

LIST OF PROJECT INSTITUTIONS

Name of the Institutions at Appraisal (RRP)

Name of the Institutions at Present

A. University

1. Universitas Udayana Universitas Udayana 2. Universitas Andalas Universitas Andalas 3. Universitas Mataram Universitas Mataram 4. Universitas Lampung Universitas Lampung 5. Univesitas Tadulako Universitas Tadulako 6. Universitas Gadjah Mada Universitas Gadjah Mada 7. Universitas Riau Universitas Riau

B. Polytechnica

1. Universitas Pattimura Politeknik Negeri Pattimura 2. Univesitas Nusa Cendana Politeknik Negeri Kupang 3. Universitas Tanjung Pura Politeknik Negeri Pontianak 4. Universitas Lambung Mangkurat Politeknik Negeri Banjarmasin 5. Universitas Mulawarman Politeknik Negeri Samarinda 6. Universitas Sam Ratulangi Politeknik Negeri Manado 7. Universitas Udayana Politeknik Negeri Bali

a While RRP used the old names of the polytechnics under universities, the polytechnics became independent institutions during implementation.

PROJECT FRAMEWORK

Design Summary Targets Achievements Important Assumptions 1. Sector and Area Goals

To improve the quality, relevance, and capacity of engineering education, and to enhance the access to such education by economically disadvantaged but qualified students who want to study engineering.

Build adequate resource capacity and technical knowledge for continuing improvement in the quality and supply of engineering education.

Ministry of National Education established the National Accreditation Board (Badan Akreditasi Nasional or BAN). Several rules and regulations on curriculum, learning process evaluation and monitoring related to quality improvement also were established. Resource capacity and technical knowledge have been improved in the quality and supply of engineering education.

The thrusts toward industrialization and modernization of the economy will be sustained.

2. Proposed Objectives

2.1. To improve the quality, relevance, and capacity of engineering education.

Improve the academic standards of engineering education and its relevance to the requirements of industry.

The academic standards of engineering education and its relevance to the requirements of industry have been improved.

Industry knows and defines its skill and training requirement, and engineering institutions will be responsive to industry’s needs.

2.2. To increase access to engineering studies by qualified students.

Increase the capacity of engineering education programs at university and polytechnic level, and provide more opportunities to study in higher quality programs.

Increased 25,632-student capacity of engineering education programs at university and polytechnic level and provide more opportunities to study in higher quality programs.

Ensure engineering graduates have mastered necessary skill, knowledge, and work attitudes.

Improved curriculum and education facilities ensured engineering gradates have mastered necessary skill, knowledge, and work attitudes.

Strengthen the institutional and technical capacity of Directorate General of Higher Education (DGHE) to plan and manage engineering education in the context of new engineering demands.

Strengthen the institutional and technical capacity of DGHE to plan and manage engineering education in the context of new engineering demands.

Appendix 2 15

Design Summary Targets Achievements Important Assumptions 3. Project Components and Outputs

3.1. Improving Quality and Relevance

- Quality assurance mechanism operational.

Engineering Quality Assessment Committee established to support links with industry.

Engineering Quality Assessment Committee established, supported by 24 person-months of international consulting services and 96 person-months of domestic consulting services by quality assurance specialist to match links with industry.

DGHE will be able to coordinate and implement all necessary measures for quality improvement.

- Industry-institutions link improved.

Engineering Program Relevancy Fund (PRF) established to support links with industry.

Under PRF, 341 research topics completed. Effective partnership with industry will be established.

- Engineering course and curricula reviewed and updated.

- Staff of selected private

institutions trained.

Course and curriculum development program designed to generate specific areas of expertise and training in curricula development. Quality of teaching staff raised through overseas and in-country fellowships and training.

Course and curriculum development, supported by 48 person-months of international consulting services and 96 person-months of domestic consulting services by curriculum specialists. It included a program designed to generate specific areas of expertise and training in curricula development. 254 fellows completed overseas master’s and doctorate programs, while 531 fellows completed domestic master’s degree program. 458, 519, and 63 fellows completed S1 Plus, S1 Special, and D4, respectively.

The design, content, and delivery of engineering courses will be achieved. Fellowships will be taken up by the eligible staff in the selected private institutions. All rehabilitation work and procurement will be undertaken as planned.

- University engineering programs upgraded.

Strengthen seven bachelor-level engineering programs in six universities

Seven bachelor-level (5 in civil engineering [CE], 1 in mechanical engineering [ME], and 1 in electrical engineering [EE]) and five diploma (2 CE, 1 ME, 1 ChE , and 1 EE) engineering programs in six universities were strengthened

- Engineering programs in polytechnics upgraded.

Upgrade 22 diploma engineering programs in seven polytechnics.

22 diploma engineering programs (7 CE, 7 ME, and 1 ChE) in seven polytechnics were upgraded. The upgraded programs were supported by 138 person-months of international and 228 person-months of domestic academic consultants. It

16 Appendix 2

Design Summary Targets Achievements Important Assumptions also included the upgrading of civil works, 41 packages of laboratory equipment, three packages of teaching aids, and 2079 tittles of engineering books.

- Private institutions supported.

Awarded overseas and in-country fellowships programs, reference books, and student grants for private institutions.

20, 12, and 131 fellows completed overseas master’s, overseas doctorate, and domestic master’s degree programs, respectively. Engineering books for reference and student grants also were provided to private institutions.

3.2. Enhancing Capacity, Access, and Participation

- Capacity of university and polytechnic programs increased.

Create additional 4,000 student slots in 3-year polytechnic diploma programs.

Additional 4,000 student slots were created in 3-year polytechnic diploma programs.

Create additional 3,000 student slots in university engineering programs.

Additional 3,000 student places were established in university engineering programs.

Establish six bachelor-level (3 EE, 2 ME, and 1 ChE) and 4 3-year diploma (2 ME and 2 EE) engineering programs in five universities.

Six bachelor-level (3 EE, 2 ME, and 1 ChE) and 4 3-year diploma (2 ME and 2 EE) engineering programs in five universities were established.

- Student Financial Assistance scheme for engineering study operational.

Improve opportunities for 1,300 women and economically disadvantaged students to study engineering through student loan scheme.

Student loan scheme could not be implemented due to economic crisis, but the Project provided 27,497 student grants to disadvantaged engineering students. More than 1,300 women benefited from the grant scheme.

3.3. Strengthening Institutional Capacity

- Improved capacity to plan, undertake research, and manage project.

Improve systems and procedures for DGHE.

The systems and procedures for DGHE were improved by a series of workshops and benchmarked to reputable higher education institutions overseas.

Appendix 2 17

Design Summary Targets Achievements Important Assumptions Tracer studies of graduates and

study in private engineering institutions undertaken.

Tracer studies of graduates and study in private engineering institutions have been undertaken.

Timely and successful implementation of the Project.

Project implementation was extended for 1 year to ensure the sustainability of the Project investment.

Strengthening management of higher education institutions.

72 staff from DGHE, technical team, and project institutions benefited from course development in US, Australia, Canada, UK, Singapore, Malaysia, etc. 68 high officials from project institutions benefited from benchmarking to overseas engineering institutions in Canada, Europe and Australia.

Strengthening management information system and project benefit monitoring system (BME).

Information and Communication Technology facilities were provided to 13 project institutions supported the BME system.

CE = Civil Engineering ChE = Chemical Engineering EE = Electrical Engineering ME = Mechanical Engineering

18 Appendix 2

Appendix 3 19

STAFF DEVELOPMENT PROGRAM

No. Activity

Length ofCourse

(months)No. of

Person

Length ofCourse

(months)No. of

Person

A. In-country staff development

1. Strengthening ProfessionalEngineering Educationa. Master Level 30 250 30 399b. Bachelor level 36 100 36 279c. Staff Development (i) Teaching Improvement 1 450 1 542 (ii) Technician Training 2 100 2 349 (iii) Fellowship Preparation 6 150 6 0

2. Upgrading Selected Polytechnicsa. Bachelor level 36 400 36 519b. Diploma level 12 40 12 48c. Staff development (i) Teaching Improvement 1 500 1 458 (ii) Learning Improvement 0 0 1 400

3. Strengthening Private Institutionsa. Master level 30 100 30 132b. Bachelor level 36 100 36 95c. Staff Development (i) Teaching Improvement 1 400 1 580 (ii) Fellowship Preparation 6 100 6 0

Sub total (A) 2,690 3,801

B. Overseas Fellowships

1. Strengthening InstitutionalCapacity (Study Visits)a. DGHE MIS and Planning 3 2 3 0b. Quality Framework 3 5 3 0c. Course Development 1 100 1 72d. Relevancy 1 5 1 0e. Sustainability Program 0 0 1 68

2. Strengthening Professional Engineering Educationa. PhD Eng 54 40 54 85b. M Eng/Ms 30 100 30 137c. Fellowship Preparation 6 60 6 212

3. Assisting Private Institutionsa. PhD Eng 54 10 54 12b. M Eng/Ms 30 20 30 20c. Fellowship Preparation 6 20 6 0

Sub total (B) 362 606

Total (A+B) 3,052 4,407

Source: Ministry of National Education

Appraisal Actual

20 Appendix 4

DISBURSEMENTS

Quarterly Disbursement ($ million)

Year Quarter Actual

Disbursement Actual

Cumulative Percentage of Actual

Disbursement

1996

III IV

1,000 0.020

1.000 1.020

1.40 0.03

1997

I II III IV

0.547 0.166 1.004 0.939

1.567 1.733 2.737 3.676

0.77 0.23 1.41 1.32

1998

I II III IV

1.251 1.274 1.482 0.290

4.927 6.201 7.683 7.973

1.75 1.78 2.08 0.41

1999

I II III IV

2.190 0.287 2.032 3.587

10.163 10.450 12.482 16.069

3.07 0.41 2.85 5.02

2000

I II III IV

4.333 4.942

11.358 4.793

20.402 25.344 36.702 41.495

6.07 6.92

15.91 6.71

2001

I II III IV

4.053 7.369 8.187 3.276

45.548 52.917 61.104 64.380

5.68 10.32 11.47

4.58

2002 I II III IV

2.189 0.337 3.326 1.160

66.569 66.906 70.232 71.392

3.07 0.47 4.65 1.62

Total

71.392

71.392

100

Source: ADB’s Loan and Financial Information System.

Appendix 5 21

PROJECT IMPLEMENTATION SCHEDULE: APPRAISAL VERSUS ACTUAL

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4Staff Development

Select trainees

In-country staff development

Overseas staff development

Specialist ServicesShortlist

Select/appoint

Fielding of specialist

Facilities DevelopmentConstruction (new facilities)

Design and document

Tender/contract

Site development

Construction

Upgrading Project Universitiesand PolytechnicsDesign and document

Tender/contract

Construction

FurnitureSpecify/document

Tender/contract

Supply

Equipment and MaterialsEquipment

Specify/document

Tender/contract

Supply

Instructional MaterialsSpecify/document

Tender/contract

Supply

Special ProgramsPrepare Program Details

Implement Program Relevancy Fund

Implement Student Loan Program

Project ImplementationSelect/appoint CPIU/LPIU Staff

Prepare Policies & Procedures

Implement & Monitor Project

AppraisalActual

1999Activity

1996 1997 1998 2000 2001 2002

22 Appendix 6

LOAN COVENANTS Reference in Agreement

Loan Covenants

Status of Compliance

I. mplementation Arrangement

A. Project

Executing Agency

Loan Agreement (L.A.), Schedule 6, para. 1.

1. Directorate General of Higher Education (DGHE), as the Executing Agency (EA), shall be responsible for coordination and overall implementation of the Project.

Complied with.

B. Central Project Implementation Unit (CPIU) L.A., Schedule 6, para 2.

2. Within 1 month after the Effective Date, DGHE, shall establish a CPIU in Jakarta responsible for centrally managing project implementation. The CPIU shall be headed by a qualified, full-time project director acceptable to the Asian Development Bank (ADB). The project director shall be assisted by the section heads for staff development, facilities development, procurement, special programs, finance, and administration.

Complied with.

L.A., Schedule 6, para. 3

3. The CPIU shall be responsible for all aspects of project implementation, including engagement and supervision of consultants; procurement of equipment, furniture, instructional, and library materials; and implementation of fellowships and other staff development programs.

Complied with.

C. Local Project Implementation Units (LPIU)


4. Within 3 months after the Effective Date, the Borrower shall establish an LPIU at each public university and polytechnic to be assisted under the Project. Each LPIU shall be headed by a local project director (LPD), who shall be responsible to the project director for day-to-day project implementation at the local level. LPDs shall also work in close cooperation with the rectors of the project Institutions and the

Complied with.

Appendix 6 23

Reference in Agreement

Loan Covenants


consultants engaged under the Project.

D. Project Steering Committee (PSC)


5. The Borrower’s PSC shall give policy guidance to the CPIU. The PSC shall meet as and when required, but at least every 6 months to monitor and review project implementation, supervise the functioning of the CPIU, and provide necessary instruction as appropriate. The PSC shall be chaired by the director general of DGHE and its membership shall include the director of academic affairs of DGHE; the bureau head of National Development Planning Agency (or BAPPENAS) in charge of religion, education, culture, and sports or his/her representation; a representative from Badan Pengkajian dan Penerapan Teknologi (BPPT); a representative of the Engineering Quality Assessment Committee (EQAC); and the project director. The PSC may invite any other individuals as it considers necessary, such as the rectors of the project universities or the directors of the project polytechnics.

Complied with.

E. Fellowships and Training Programs


6. The CPIU shall be responsible for the administration of the in-country and overseas fellowships and training programs provided under the Project. The Borrower, through the Ministry of National Education (MONE), shall submit for ADB’s approval the detailed criteria and procedures for selection of candidates for overseas fellowships and short-term staff training programs, together with details of training programs, venues for training, and financial terms and conditions. For the overseas programs, the CPIU shall inform ADB of the selected candidates and their respective qualifications for ADB’s approval prior to awarding the fellowships. For long-term training programs (overseas and in-country), the CPIU shall ensure that a strict system of selection and guarantees is adopted for the staff training program to ensure that the

Complied with.

24 Appendix 6


Loan Covenants


recipients will pledge (in a written contract) to continue to serve the project institutions for a period equal to double the period of training plus one year; and upon completion of the training, to reimburse the Borrower an amount equal to the training cost. For in-country programs, the CPIU shall select candidates according to MONE’s procedures and make appropriate arrangements, satisfactory to ADB, for carrying out the programs. With regard to fellowship and training programs to be awarded to private universities and polytechnics, the CPIU shall ensure that a system of guarantee or bonding is adopted by the private institutions and the field of study corresponds with that of the project facilities.

II. Other Matters A. Cost Recovery and Financing of Engineering Education

L.A., Schedule 6, para. 7 (a)

7. (a) Within 3 months after the Effective Date, DGHE shall set up a task force to review the existing mechanisms for resource mobilization for engineering education (including laboratory and other fees and income from production units and consultancy services to the industry).

Complied with.

L.A., Schedule 6, para. 7 (b)

(b) Within 6 months after being established, the task force shall develop plans and recommendations for engineering education with specific time bound cost- recovery targets for each of the assisted project facilities and polytechnics. Recognizing the Borrower’s objectives of recovering 50% of operating costs of all higher education institutions by 2019, it is anticipated that the greater potential of engineering faculties and polytechnics for direct cost recovery will permit earlier achievement of the Borrower’s objectives for project facilities and polytechnics.

Complied with. A study was commissioned under the auspices of the task force. However, due to the fiscal and monetary problems, the policy is on hold, although the fees were recently increased to their pre-crisis level.

Appendix 6 25


Loan Covenants


B. Establishment of Local Consultative Fora


8. Within 6 months after the Effective Date, the Borrower shall ensure that each project institution will establish a local forum to hold regular consultative meetings with the local economic planning authority (BAPPEDA) and chamber of commerce and industry (KADIN) to strengthen links between the project institution and regional development. Each forum will meet at least every 6 months and submit to DGHE the minutes of such meetings.

Complied with.

C. Engineering and Education Quality Assessment Committee (EQAC)


9. (a) Within 12 months after the Effective Date, the Borrower shall establish EQAC under the National Accreditation Board (BAN), which shall assume responsibility for engineering education quality assurance and accreditation. The functions of EQAC shall be executed through a permanent secretariat in DGHE, and the membership of EQAC shall include representatives from universities and polytechnics in the public and private sectors and industry and professional associations.

Partly complied with. EQAC’s functions are operational under the umbrella of the National Accreditation Board (BAN).


(b) Within 6 months after being established, EQAC shall develop and pilot test criteria, guidelines, and procedures for quality assessments in the fields of civil, mechanical, electrical, and chemical engineering, and electronics for public and private engineering education institutions. The Borrower shall cause EQAC to communicate the results of the pilot activities to DGHE and ADB for their comments.

Complied with. BAN is performing the expected functions of EQAC. The EA is using BAN for this purpose, instead of establishing EQAC.

L.A., Schedule 6, para. 9 (c)

(c) Within 3 months after receiving comments on the results of the EQAC pilot activities from DGHE and ADB, the Borrower shall formally establish the

Complied with.

26 Appendix 6


Loan Covenants


national framework for quality assurance and accreditation, and the accompanying rules and regulations, in the aforementioned fields of engineering. DGHE shall ensure that EQAC will receive adequate operational budgetary allocations during project implementation and after project completion.

D. Program Relevancy Fund (PRF)

L.A., Schedule 6 para. 10 (a)

10. (a) No later than 6 months after the Effective Date, the Borrower shall establish the PRF. The Borrower shall ensure that the budget for the PRF will be made available as and when required.

Complied with.


(b) Within 6 months after the Effective Date, DGHE shall develop and start a pilot program to implement the PRF and communicate the results of the pilot program to ADB for comments.

Complied with. 341 research proposals implemented


(c) Within 3 months after receiving ADB’s comments on the results of the PRF pilot program, DGHE shall refine the PRF program and implement it fully. DGHE shall inform ADB of the progress every 12 months

Complied with.

E. Promoting Private Education


11. DGHE shall ensure that systematic information on private engineering education is gathered with assistance from private engineering education institutions. Such a program shall include the continuation of existing curriculum development assistance, teacher and staff upgrading, and capital assistance for physical facilities and equipment. DGHE shall communicate to ADB the progress of this program every 6 months during the project implementation period.

Complied with.

F. Participation of Women and Economically

Appendix 6 27


Loan Covenants


Disadvantaged Students L.A., Schedule 6, para. 12

12. Within 12 months after the Effective Date, DGHE, in consultation with Ministry of Finance (MOF) shall establish a Student Financial Assistance Scheme (SFAS) and ensure that the selection of students who will avail of the financial assistance scheme under the Project will be based on merit, while giving preference to economically disadvantaged and female students. The SFAS shall have two categories: (i) a general category for all disadvantaged students, including women; and (ii) a category for women to enable SFAS to achieve an overall female to male ratio among assisted students of at least 50:50. The SFAS funds shall be repayable on agreed terms and conditions. DGHE shall also ensure that the same or higher level of assistance will be maintained for at least 5 years after the completion of the Project. On the basis of successful operation of the scheme, the Borrower shall consider its system-wide replication with needed modifications.

A grant system is in place.

G. Maintenance of Laboratory and Workshop Equipment

L.A. Schedule 6, para. 13

13. DGHE shall ensure that adequate routine budgetary allocations are made for maintenance and repair of laboratory and workshop equipment procured under the Project on the following basis: at least 3% of the book value of the equipment in the first year, and 5% in the second and successive years. DGHE shall ensure that an adequate number of technicians are appointed in the project institutions to carry out such maintenance and repair work, with conditions of service that encourage their retention. DGHE shall also ensure that procedures for availing of the budget are streamlined to allow expeditious disbursement and utilization of funds as needed.

DGHE requested the commitment of the institutes.

H. Midterm Review

28 Appendix 6


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14. The Borrower shall review progress in the implementation of the project activities, particularly EQAC, course and curriculum development, PRF and SFAS, with ADB every 6 months. Initially, a midterm review shall be undertaken by the Borrower and ADB during the third year of project implementation to assess the Project’s progress and achievements against its objectives, to identify any difficulties being encountered, and to recommend remedial action, if and where required.

Complied with. Midterm Review Completed.

I. Benefit Monitoring and Evaluation (BME)


15. (a) The Borrower shall cause DGHE to carry out benefit monitoring and evaluation (BME) activities to (i) control project inputs and outputs, the project’s performance in general, and the effects and impact of project implementation; (ii) monitor the progress in the implementation of the Project and its various components in relation to targets set in the Project’s implementation schedule; (iii) collect information and data on the involved implementing and donor agencies to evaluate project progress; and (iv) identify constraints and lags which require corrective action.

Being complied with.


(b) the BME Management Information System (BME-MIS) developed under the ADB-assisted Six Universities Development and Rehabilitation Project (Loan 1013-INO) shall be adapted to serve the Project, subject to necessary changes in terms of the selection of relevant and ranked indicators and variables to measure the Project’s progress and benefits.

Complied with.


(c) Within the context of the Project, the CPIU shall be required to carry out continuous BME activities throughout the duration of the Project in close cooperation with the project institutes, the monitoring and evaluation and planning subsections of DGHE, and, where necessary, with other

Complied with.

Appendix 6 29


Loan Covenants


institutions.

L.A., Schedule 6, para. 16 (d)

(d) The Borrower and ADB shall undertake a terminal review upon completion of the Project. The aim shall be to assess the Project’s achievements and overall success, so as to provide information for the Borrower and ADB on the overall performance and the final impact of the Project, and to establish lessons learned.

Project Completion Review completed.

J. ODA Cofinancing


16. (a) The Borrower shall take all necessary action to ensure that the official development assistance (ODA) cofinancing for the Project is obtained not later than 6 months after the Effective Date. After the ODA cofinancing has been obtained by the Borrower, the corresponding amount of the loan shall be canceled.

ODA cofinancing canceled.


(b) In the event that the ODA cofinancing shall not have been obtained by the date referred to in subparagraph (a), the Borrower shall undertake procurement action using the proceeds of the loan in accordance with the ADB’s Guidelines for Procurement.

Complied with.

K. Particular Loan Covenants

L.A. Article IV, Section 4.06 (b)

17. The Borrower shall (i) maintain, or cause to be maintained, separate accounts for the Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 9 months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors’ opinion on the use of the loan proceeds and compliance with the

Complied with.

30 Appendix 6


Loan Covenants


covenants of this Loan Agreement), all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

Appendix 6 31

PROJECT PERFORMANCE RATING ASSESSMENT

Criteria

Weight

Assessment

Rating

Value Rating Value

(Weight x

Rating Value)

1. Relevance 20 Highly Relevant 3 0.60 Relevant 2 Partly Relevant 1 Irrelevant 0

2. Efficacy 25 Highly Efficacious 3 0.50 Efficacious 2 Less Efficacious 1 Inefficacious 0

3. Efficiency 20 Highly Efficient 3 0.60 Efficient 2 Less Efficient 1 Inefficient 0

4. Sustainability 20 Most Likely 3 0.60 Likely 2 Less Likely 1 Unlikely 0

5. Institutional 15 Substantial 3 0.45 Development Significant 2 Moderate 1 Negligible 0 Overall Rating* Highly Successful 2.75

* Sum of the weighted ratings

Note: Highly Successful: Overall weighted average (OWA) is >2.5 and none of the five criteria has a core of less than 2; otherwise, the rating would be downgraded by one level. Successful: OWA is between 1.6 < S <2.5 and none of the five criteria has a score of less than 1; otherwise, the rating would be downgraded by one level. Partly Successful: OWA is between 0.6 < S < 1.6 and number of criteria receiving a rating of less than 1 should not exceed two; otherwise, the lowest rating would given. Unsuccessful: OWA is < 0.6

asian development bank...ii qtr.2000 iii qtr. 2002 staff development in-country-first contract iv...

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