During the last five years the Government of Indonesia (GoI) has recognised the effectiveness of performance based funding due in part to the success of the DFAT Water Hibah. Acknowledging this, the GoI is renewing its interest to introduce performance based criteria for fiscal transfers to Local Governments (LGs). The Director General for Fiscal Balance has announced this in a draft policy blueprint to reform the fiscal transfer system. Sanitation Hibah Program from GOI is an effort to accelerate the improvement of the on-site Wastewater Management through construction Septic Tanks and provision of desludging trucks with output-based approach or based on performance. The grant program will synergize with regular desludging services (L2T2), particularly in the districts / cities have Septage Treatment Plant (IPLT). Implementation of the Sanitation Hibah Program using the mechanism of PMK No. Local 188 / PMK.07 / 2012 and substituted by PMK 214/2015 on grants from the central government to local governments and / or other laws and regulations related to regional grants and procedures for the distribution of grants to local governments. In this program, local governments are required to invest in advance using budget funds, to build septic tanks and supply desludging trucks. Furthermore, the grant can be disbursed to local governments based on the results of the verification that the septic tank are built. Verification, oversight and monitoring will be provided by consultants.
Actual Services provided:
• Preparation of the Activity Design Documents (ADD) including Terms of Reference (ToR), project schedule, personnel required and draft budget for the Indonesian Infrastructure Initiate (IndII) for Department of Foreign Affairs and Trade (DFAT) approval and project execution.