Office of Contract Management, USAID/Indonesia, Box 4, Unit 8135, APO AP 96520-8135

R -- COORDINATED LOCAL ENVIRONMENTAL ACTION NETWORK (CLEAN) URBAN PROJECT 497-0365 SOL SOL. NO. INDONESIA-97-006 POC Contact Point: Sharon L. Cromer, Contracting Officer, USAID/Indonesia, Tel: 62-21-3442211, Ext.2490 or Fax No: 62-21-380- 6694. (A) The United States Agency for International Development (USAID/Indonesia), in cooperation with the Government of Indonesia (GOI)'s Ministry of Finance, Municipal Finance Project, invites qualified firms/institutions to submit proposal in response to a solicitation prepared under the Coordinated Local Environmental Action Network (CLEAN-Urban), Activity 497-0365. It is anticipated that the CLEAN-Urban Solicitation will be available in hard copy and on the Internet within the next two weeks. All proposals should be submitted to the Contracting Officer at the date stated in the solicitation. Urban environmental problems in Indonesia are immense, for a variety of reasons. A key obstacle blocking efforts to address many of these problems is under-investment in urban environmental infrastructure services, such as water supply, wastewater treatment and disposal, solid waste management, and drainage. The Government of Indonesia (GOI) recognizes that this problem results in large part because its highly centralized system of government management and finance is not well suited to meeting challenges in the country's large number of widely scattered urban areas. There are four basic components to the CLEAN-Urban activity. First, CLEAN-Urban will assist officials in selected local governments (PEMDAs) and water authorities (PDAMs) in urban areas to prepare financing packages for selected kinds of urban environmental infrastructure projects. The objective of this activity is to help these officials learn to make infrastructure financing decisions that better meet community needs. The principal central government counterpart for this activity is expected to be the Ministry of Home Affairs. Second, CLEAN-Urban will strengthen the ability of local stakeholder groups (community groups, business groups, universities, NGOs, etc.) to participate more effectively in local decision making regarding urban environmental infrastructure services, thus helping local officials to better gauge the demand for these services. Third, at the central level of government, the CLEAN-Urban activity will refine and institutionalize central-level policies and procedures that will facilitate full and effective use at the local level of the financing menu described above. The principal GOI counterpart for this activity will be the Ministry of Finance, where a project office will be established. Fourth, CLEAN-Urban will, for up to twelve months (12), support the GOI's official program for developing training modules targeted at senior urban managers, known as the Urban Management Training Program (UMTP). UMTP was originally conceived and established as part of MFP. The UMTP training coordinator has been an MFP advisor. CLEAN-Urban will continue to support specific UMTP activities in order to develop a training module targeted at senior officials of local water enterprises (PDAMs), and assist with the full institutionalization of UMTP as a program managed and supported in a sustainable, on-going fashion by the GOI. It is anticipated that at least two-thirds of the technical assistance to be delivered as part of CLEAN-Urban will be provided by Indonesian consultants, and an even larger proportion of all technical assistance is expected to be provided directly to local-level counterparts. One goal of CLEAN-Urban is to use Indonesian consultants for the delivery of local technical assistance to strengthen the capabilities of domestic experts to provide such services to the GOI and sustain an on-going process of technology transfer. USAID's assistance under the CLEAN-Urban activity is designed to institutionalize change that will be fully sustained by the GOI, local consultants, and non-governmental groups after the completion of CLEAN-Urban. This institutionalization should occur because the performance objectives under this contract will complete the steps necessary to make policies fully operational at the local level and implementable by local governmental and non-governmental organizations. The performance objectives set forth in this contract and all other CLEAN-Urban activities have been designed to be fully consistent with, and supported by, the GOI's Urban Policy Action Plan, which embodies the GOI's annual commitment to progressive urban policy change. Note that "network" in the name of the CLEAN-Urban activity refers to a critical requirement of effective, sustainable financing of urban environmental infrastructure services, namely the need for local officials and local stakeholders to communicate with each other in order to accurately and appropriately gauge the demand for services to be financed. CLEAN-Urban will not create formal communication networks, but will (1) assist local stakeholder groups to effectively and responsibly articulate their need for services, and (2) assist local officials to effectively solicit and utilize those expressions of need in making cost-effective decisions about financing urban environmental infrastructure. Note also that although much of the activity associated with CLEAN-Urban will focus on financing of urban infrastructure, the end result of this work will be improvements in urban environmental conditions. Environmental themes run throughout the design of CLEAN-Urban and must be fully accommodated during project implementation. The CLEAN-Urban activity will be implemented over a 48-month period. USAID/Indonesia encourages the participation of small business concerns and disadvantaged enterprises in this project in accordance with FAR Part 19 (48 CFR Chapter 1) and AIDAR Part 726 (48 CFR Chapter 7). Accordingly, every reasonable effort will be made to identify and make use of such organizations. (B) This CBD notice can be viewed and downloaded using the Agency WebSite. It is anticipated that the CLEAN-Urban Request For Proposals (RFP) will be available in two weeks and can be downloaded from the Agency web site. The Worldwide Web address is http://www.info.usaid.gov. Select Business and Procurement Opportunities from the home page, then "USAID Procurements." On the following screen, select "Download Available USAID Solicitations." The RFP can also be downloaded via Anonymous File Transfer Protocol (FTP). The FTP address is FTP.INFO.USAID.GOV. Logon using the user identification of "anonymous" and the password is your e-mail address. Look under the following directory for the RFP: pub/OP/RFP/INDO9706/indo9706.rfp. Receipt of this RFP through INTERNET must be confirmed by written notification to the contract person noted above. It is the responsibility of the recipient of this solicitation document to ensure that it has been received from INTERNET in its entirety and USAID bears no responsibility for data errors resulting from the transmission or conversion process". (0153)

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