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Australia Indonesia Infrastructure Grants for Municipal Sanitation - Project Design Document

Summary of publication

This Program Design Document describes the Australia Indonesia Infrastructure grants for municipal sanitation (sAIIG) to be implemented over three years from 2012 to 2014. The sAIIG is designed to stimulate local government investment in municipal infrastructure for sanitation, and to provide incentives for governance reforms that will impact sanitation and other sectors.

The Government of Indonesia will award sAIIG to select LGs using the GoI on-granting regulations. Funds will be disbursed using an output-based modality after the LG has implemented the sanitation infrastructure stipulated in the grant agreement, and after the works have been verified as acceptable. The GoI will select LGs through an assessment of the governance credentials of the LGs, and evidence of their capacity to implement sanitation programs. To retain the grants throughout the program life, LGs will have to demonstrate progressive attainment of governance benchmarks.

The sAIIG concept is an extension of the Infrastructure Enhancement Grants (IEG) for municipal sanitation, which was implemented as a pilot program during Phase I of IndII. The sAIIG incorporates important lessons learned during that earlier activity, most significant of which was to adopt an output-based modality, and reduce the types of infrastructure eligible for grants. Neighbourhood sewerage with treatment, or with a connection to existing sewerage, and solid waste transfer stations comprise the eligible grant components of the sAIIG.

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sAIIG Program Design Document [DOCX 337 KB]

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Last Updated: 26 February 2018
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