WB says dredging project will be ‘corruption free’

The World Bank said it will ensure that its US$150 million loan for a river dredging project will be free from corruption.

The Jakarta Urgent Flood Mitigation Project (JUFMP) project is expected to reduce the impacts of major floods, such as those that affected 2.6 million Jakarta residents in 2007, by restoring drainage systems in 15 sites by 2014.

The bank has prepared for any possible loopholes or vulnerabilities that might be exploited, and has mapped corruption risks that might occur during project development, World Bank infrastructure specialist Hongjoo J. Hahm said.

Corruption may occur during the tender process when bidders enter into clandestine and collusive arrangements with government officials to win the bid, Hahm said.

The World Bank would directly channel funds to contractors instead of via government officials to prevent this kind of corruption, he said.

Measures are also being taken to stop fraud during implementation if contractors misrepresent the volume of silt and trash removed from 10 rivers, four dams and the West Flood Canal, Hahm added.

The bank will work with the Ministry of Public Works and the city administration to hire consultants to monitor the exact volume of silt and garbage removed during the dredging process, he said.

“The consultants supervise each contractor’s work to ensure that the outcome is in synch with established guidelines,” he said, adding that a complaint hotline will be installed for public input.

The city administration will repay 41 percent of the loan while the remainder will be repaid by the central government.

The Indonesia Corruption Watch (ICW) recently reported that Jakarta, with 16 corruption cases, tied third with West Java on the list of provinces with the highest number of graft cases, behind North Sumatra, which had 26 cases.

In terms of potential state losses, corruption in Jakarta posed the largest threat to state coffers, causing potential losses of Rp 709.5 billion (US$79.7 million). Lampung followed with Rp 408.3 billion in state losses and Nanggroe Aceh Darussalam with Rp 117.7 billion.

The project was initially planned to start in June, but may be delayed further delays due to the loan disbursement, the city administration said last week.

“We expect a presidential decree to be issued in October, in time to kick off the project early next year,” Governor Fauzi Bowo said.

The project was previously postponed because of administrative problems.