Management Review

In this chapter, the GCA shall have a goal to prepare a project monitoring and evaluation (M&E) mechanism for the KPBU agreement. To fulfil the goal, the GCA shall conduct the management review. The management review document shall be a reference guide for PPP Nodes to monitor and evaluate the KPBU project. The GCA’s management review shall also involve preparation of a draft of the management document for the KPBU agreement. The inclusions of this draft are mentioned in the following sub-sections.

Here, the GCA shall present a summary of the KPBU project’s profile developed based on the results of the analysis in previous studies and documents. The GCA shall ensure that the project profile contains information including (i) Project name (ii) Project location (iii) Project description (iv) Project status (KPBU stage) (v) Sector and sub-sector of the KPBU project (vi) PJPK/GCA information (vii) Financial indicator information (viii) Concession period estimate (ix) KPBU project cost estimate (x) Indication of government support and/or government guarantees (xi) Indication of project structure (response from the previous section) and (xii) Indication of project milestones. The GCA shall present this information in a tabulated form, if possible, for easy reference.

The KPBU or PPP Node appointed by the GCA has defined duties/tasks and authorities regarding the KPBU project. The GCA shall explain these duties/tasks and authorities in the areas of policy formulation, synchronisation, coordination, supervision, and evaluation of construction of the KPBU project and control the implementation of the KPBU agreement. The Ministerial Regulation Number 07/2023 elaborates that the KPBU Node has control over various stages of the KPBU project including construction, service provision, and the end of the KPBU Agreement. These are listed here for reference to enable the GCA to define and specify the duties and authorities of the KPBU Node with regard to the said KPBU project.

1. (i)Construction stage –

   (a)construction implementation according to the KPBU agreement
   (b)issues related to potential failure and the inability of the IBE to fulfil the KPBU Agreement
   (c)delay or change in the construction schedule of the KPBU project
   (d)design variations, if requested by the GCA
   (e)readiness of the IBE to execute the operational stage of the KPBU project
   (f)monitoring the alignment of technical planning and construction implementation
   (g)labour-related challenges
   (h)risk mitigation borne by the GCA
   (i)feasibility support provided by the minister responsible for state finance
   (j)guarantee agreements by BUPI or by the minister responsible for state finance and BUPI and
   (k)regress agreement between the GCA and BUPI or between the GCA and the minister responsible for state finance and BUPI.

2. Service provision stage –

   implementation of the KPBU agreement
   (b)monitoring of the service in line with the KPBU agreement
   (c)implementation of guarantee agreement by BUPI or by the minister responsible for state finance and BUPI and
   (d)regress agreement between the GCA and BUPI or between the GCA and the minister responsible for state finance and BUPI.

3. Preparation for the end of the KPBU agreement stage –
   

   (a)As the KPBU service provision period approaches its end, the KPBU node shall consider:
   a.asset transfer and/or asset management transfer if the KPBU agreement stipulates the transfer of assets
   and/or asset management from the IBE to the GCA and b.the desired project conditions at the end of the KPBU agreement term are in line with the KPBU agreement.
   (b)The KPBU Node shall evaluate assets through the following activities:
   a.review and evaluate all components included in KPBU agreement. The KPBU Node shall evaluate the condition or the performance and remaining life of every component based on the parameters that have been agreed upon in the KPBU agreement
   b.calculate the required cost for routine and non-routine operations and maintenance during the remaining life cycle of the KPBU project
   c.evaluate the availability of spare parts that may no longer be technically viable
   d.evaluate the human resources available to the GCA and
   e.evaluate implementation management efficiency during the KPBU partnership.
   (c)If there is an asset and/or asset management transfer at the end of the KPBU management phase, the KPBU
   Node shall execute the following activities:
   a.prepare and submit applications for inspection/testing all KPBU assets for the purpose of asset transfer and/or asset management transfer
   b.conduct physical inspection and testing for the purpose of asset transfer and/or asset management transfer in line with the KPBU agreement
   c.execute the necessary administrative actions in line with the provisions of laws and regulations to ensure that all assets are recorded in the name of GCA
   d.prepare minutes of the asset transfer, ensure they are signed by the IBE & the GCA and
   e.ensure that assets are free from all material guarantees, encumbrances, burdens in any form, or third-party claims.
   

Here, the GCA shall describe the technical and administrative requirements that are to be fulfilled during the preparation stage of the KPBU project. In terms of providing the sector infrastructure for the public, the GCA shall ensure that the project plan is able to meet the standards of the facility’s or infrastructure’s service as stipulated in the sector regulation and policy. Here, the GCA shall also mention any supporting activities that require administrative efforts for example, minutes of the market sounding, minutes of the public consultation, submission of application for AP support, submission of application for government support, submission of application for government guarantee, submission of location determination, formation of the KPBU team, environmental approval activities, land acquisition plan, resettlement plan, utilisation of BMN/D, submission of the PPP Book etc. It would be easier for the GCA to develop a tabulated or sequential list for these activities to enable systematic completion and follow up on activities regarding the technical and administrative requirements from time to time.

The GCA shall monitor the timing of the financial close. Immediately after the financial close for the KPBU project is achieved, the GCA shall describe here the indicative scheduling of the project’s implementation. The GCA shall ensure that the preparation of the project implementation schedule aligns with the maximum KPBU implementation timeline stipulated in the Ministerial Regulation Number 7 of 2023.

Here, the GCA shall describe the inspection activity plan. The inspection activity plan ensures that every input used is adequate and in line with requirements. The plan also ensures every process carried out is in line with the infrastructure service provision’s KPBU agreement and in line with the service specifications described in the section ‘Determination of Output Specifications’ of the Commercial Review of the Pre-FS. The GCA shall also describe the inspection methods and project acceptance criteria including the schedule/duration of acceptance. For a concise presentation, the GCA can prepare a control table to plan verification/validation, M&E, and the inspection & testing of acceptance criteria. In the control table, the inspection numbers can occur on rows and the various columns could include method, criteria, and time period. Give a sample control table, to illustrate to the GCA (see hospital toolkit).

Here, the GCA describes the examination, acceptance criteria and references used for the implementation of the supervision examination of the KPBU agreement at the KPBU management stage. The management stage is the stage post-transaction, including construction, operation, and end of the KPBU agreement period. The references used can be in the form of Terms of Reference (TOR)/technical specifications, standards, or applicable laws and regulations. For a concise presentation, the GCA can prepare the list of the project acceptance criteria in a tabular format. In the table, the inspection numbers can occur on rows and the various columns could include activity, criteria, reference and information. Give a sample table, to illustrate to the GCA (see hospital toolkit).

Here, the GCA describes the master document list plan. This plan lists the reference documents used by the KPBU Node team. The plan also lists references in the form of standards or laws and regulations related to activities at the KPBU management stage. For a concise presentation, the GCA can prepare the Master List Plan for KPBU project documents in a tabular format. In the table, the serial numbers can occur on rows and the various columns could include name and/or record number, document publishing recording, document location storage recording, and a recording of the time of saving the document. Give a sample table, to illustrate to the GCA (see hospital toolkit).

Here, the GCA shall maintain documentation of the recap or recording of the checklist of worksheets/evidence of work used in the next stage of activities by the KPBU Node. In the implementation of the KPBU management stage, the GCA shall record the implementation activities that show that the activities have been carried out and are in line with the pre-defined rules and requirements. For a concise presentation, the GCA can prepare the Master List Plan for recording worksheets/evidence of work in a tabular format. In the table, the serial numbers can occur on rows and the various columns could include recording/evidence of work, location storage recording (of worksheet records/evidence of work), and shelf-life recording. Give a sample table, to illustrate to the GCA (see hospital toolkit).

The GCA shall mention, in brief, the key conclusions and findings of the management review during the Pre-FS preparation. Briefly mention the key takeaways from each section of the review including the (i) project structure indications (ii) KPBU project profile (iii) duties and authorities of the KPBU Node (iv) obligation of the parties in the KPBU agreement (v) technical and administrative requirements (vi) project control and implementation schedule indication (vii) plans/methods of verification/validation, M&E, inspection & testing of acceptance criteria (viii) list of acceptance criteria (ix) document master plan and (x) master list plan for worksheet records/evidence of work.