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Indonesia: Neighborhood Upgrading and Shelter Sector Project

sector: Water and Other Urban Infrastructure and Services | country: Indonesia

The project completion report (PCR) offered three lessons, the first one focusing on community empowerment and slum upgrading, although the PCR does not discuss in detail how this lesson was derived from the project experience. The two other PCR lessons, that this validation endorses, relate more to the experience of this project. First, in a context of decentralization, establishing appropriate city management and monitoring arrangements is essential to supervise administrative and technical aspects and provide support to community neighborhoods. Second, covering a vast number of cities spread over almost the entire country may not be an effective way of maximizing the use of resources. Instead, a focused geographic approach would have provided flexibility for designing better social and economic benefits.

In view of these, the validation adds that – first, accurate estimates and monitoring of cost and technical parameters and reporting of them are essential for good project design, not least for calibrating the correct scale of complementary components. Work on shelter for the poor in Indonesia in this case, should take advantage of the country’s long and extensive experience in this sector. Second, it is important for ADB to monitor the engagement of key project players to ensure their ownership of a project and support for its purpose and actions. The successful implementation of the shelter finance component in this case might have had a better chance with greater ADB attention to the participation of shareholder institutions.

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