Office of Contract Management, USAID/Indonesia, Box 4 Unit 8125, APO AP 96520-8135. TELEX 44218 AMEM JKT

R -- TECHNICAL ASSISTANCE TO THE GOVERNMENT OF INDONESIA'S MUNICIPAL FINANCE PROJECT (MFP) POC Contact Sharon Cromer, Contracting Officer, Office of Contract Management, USAID/Indonesia, TEL. 62-21-344-2211 EXT. 2490 or FAX NO. 62-21-380-6694. Subject to availability of funds, the United State Agency for International Development (USAID/Indonesia) intends to award a Non-competitive modification to contract No. 497-0365-C-00-4077- 00 with the Research Triangle Institute (RTI) for the Municipal Finance Project to conduct additional activities for an estimated amount of approximately USD660,000. The purpose of the Municipal Finance Project is to assist the Government of Indonesia adopt an enable framework for integrating Urban Environmental Management within a system of improved, decentralized Municipal Finance and Planning. The outputs of the project are (1) Development of a stable institutional source of domestic credit, under which municipalities can borrow to finance part of their capital needs, including investment in environmental infrastructure, (2) Adoption of policies for mixing loans with grants, involving approval of loans, capital grants, capital expenditures, and debt management, under a single investment package, (3) Establishmentof an indigenous capacity to deliver technical assistance and training in urban management, (4) Establishment of national guidelines for sustainable pricing of environmental infrastructure and services, and for cost recovery targets appropriate for different types of environmental infrastructure, (5) Development and implementation of procedures for incorporating environmental concerns within IUIDP (Integrated Urban Infrastructure Development Program) decentralized investment packages, and (6) Establishment of a capacity for reviewing AMDAL (Environment Impact) assessments of locally- generated urban environmental infrastructure projects. The activities to be added in the contract modification may include (1) curriculum development for two training course modules under the Government of Indonesia's Urban Management Training Program (UMTP), namely "Urban Service Delivery Management" and "Urban Spatial Planning and Land Management," (2) Assistance to Local Water Utilities (PDAMS) to comply with public audit requirements of the Indonesian Capital Markets Supervisory Agency (BAPEPAM) for the issuance of Municipal Bonds, and (3) Assistance to policy research studies to support the following topics: Debt financing by the Government of Indonesia's Regional Development Account, corporatization of local government services via their conversion to local government enterprises, and improved efficiency and effectiveness of government transfers via reallocation of central government sectoral grants to local government block grants. See CBD No. 22. (0167)

Loren Data Corp. http://www.ld.com (SYN# 0074 19970618\R-0009.SOL)