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World Bank Document Document of The World Bank FLE COPY FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 1905b-IND INDONESIA IRRIGATION XI Public Disclosure Authorized STAFF APPRAISAL REPORT Public Disclosure Authorized Public Disclosure Authorized Projects Department East Asia and Pacific Regional Office This doeuennt has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENT US$1.00 = Rupiahs (Rp) 415 Rp 100 = US$0.241 Rp 1 million = US$2,409.64 WEIGHTS AND MEASURES - METRIC SYSTEM 1 millimeter (mm) = 0.039 inches 1 meter (m) = 39.37 inches 1 kilometer (km) = 0.62 miles 1 square kilometer (sq m) = 0.386 square miles 1 hectare (ha) = 2.47 acres 1 cubic meter (cu m) = 35.31 cubic feet 1 million cubic meters (MCM) = 811 acre feet 1 liter (1) = 0.264 gallons (USA) 1 liter/second (1/sec) = 0.035 cubic feet per second 1 kilogram (kg) = 2.2 pounds 1 metric ton (ton) = 2,205 pounds gO'NVERSION FACTORS FOR RICE 1 ton "dry srtalkpaddy" = 800 kg paddy ("paddy gabah") = 500 kg milled rice 1 ton paddy (gabah) = 630 kg milled rice INDONESIA FISCAL YEAR April 1-March 31 FOR OFFICIALUSE ONLY ABBREVIATIONS BIMAS - Bimbingan Massal Swa Sembada Bahan Makanan "Mass Guidance for Self-Sufficiency in Foodstuffs" a farm input-credit package program BRI - Bank Rakyat Indonesia - People's Bank of Indonesia BULOG/DOLOG - Badan Urusan Logistik - "National Logistics Body" - rice procurement agency/Depo Logistik - provincial branch of BULOG BUUD - Bahan Usaha Unit Desa - Forerunner of KUD as Village Unit Cooperative DGWRD - Director(ate)-General of Water Resources Development DGC - Directorate-General of Cooperatives DIP - Project Implementation Budget DOR - Directorate of Rivers DPMA - Directorate of Hydraulic Engineering GWh - Gigawatt hour (1 million kilowatt hours) GOI - Government of Indonesia HYV - High-Yielding Variety INMAS - Intensifikasi Massal - "Massive Intensification" - a farm input program INPRES - Instruksi Presiden - "Presidential Instruction" - a rural public works program IPEDA - Iuran Pembangunan Daerah - Land Tax KUD - Koperasi Unit Desa - Village Unit Cooperative MOA - Ministry of Agriculture MW - Megawatt (1,000 kilowatts) NFCE - National Food Crops Extension Project O&M - Operation and maintenance PLN - Perusahaan Umum Listrik Negara - National Power Company of Indonesia PROSIDA - Proyek Irigasi IDA - Agency of DGWRD created to execute IDA-assisted projects Proyek Cimanuk - Badan Pelaksana Proyek Pengembangan Wilayah Sungai Cimanuk, "Project Executive Body for Cimanuk River Basin Development" Proyek Hidrologi - Badan Pelaksana Proyek Hidrologi dengan bantuan Bank Dunia, "Project Executive Body for Hydrological Study with World Bank Assistance" REC - Rural Extension Center SEDEKU - Semarang-Demak-Kudus Irrigation System This document hasa restricteddistribution and may be used by recipients only in the performance of their omcialduties. Its contents may not otherwisebe disclosedwithout World Bank authorization. I INDONESIA: APPRAISAL OF IRRIGATION XI TABLE OF CONTENTS Page No. 1. BACKGROUND . .1 General .1... .. The Agricultural and Rural Sector. 1 Development Strategies ................ 2 The Irrigation Subsector . 4 Project Formulation. 5 2. THE PROJECT AREAS. 7 Location . 7 Climate 7 soils. 8 Population, Farm Size and Land Tenure . 8 Agricultural Support Program . 9 Existing Works and Infrastructure . 10 3. THE PROJECT . 11 The Project Works .12 Water Supply, Demand and Quality . 14 Status of Engineering .15 Implementation Schedules . 15 Cost Estimates .16 Financing . 16 Procurement .17 Disbursements .18 Accounts and Audits . 18 Environmental Effects .18 4. ORGANIZATION AND MANAGEMENT . 21 Project Management .21 Consultants, Advisors and Training . 22 Agricultural Support Services . 24 Operation and Maintenance . 25 Monitoring . 26 5. AGRICULTURAL PRODUCTION .27 Present Cropping Patterns .27 Future Cropping Patterns .28 Future Yields with Project .29 Cropping Calendars .29 Drying, Storage and Processing . 30 This Report is based upon findings of an appraisal mission composed of Messrs. J.J. O'Brien, M. Saddington, W.P. Ting, N.D. Owens (Bank), L. Bartsch, M. Fireman, and E.B. Lipcomb (Consultants), which visited Indonesia in October 1977. - ii - Page No. 6. MARKET PROSPECTS, PRICES, FARM INCOMES AND PROJECT CHARGES. 32 Market Prospects . .. 32 Prices .... 33 Farm Incomes . .. .. 33 Project Charges . 35 7. BENEFITS, JUSTIFICATION AND RISKS . 42 8. AGREEMENTS REACHED AND RECOMMENDATION . 50 List of Tables in Main Report 3.1 Cipamingkis Subproject Water Balance . 19 3.2 Summary Cost Estimate ... ..... o. 20 4.1 Consulting Services and Training . 23 5.1 Cropping Patterns and Production . 31 6.1 Price Structure for Food Crops and Fertilizers . 38 6.2 Input and Output Price Summary . 39 6.3 Summary of Farm Budgets . 40 6.4 Rent Recovery .... .... 41 7.1 Economic Analysis - Net Value of Production at Full Project Development . 47 7.2 Total Monthly Crop Labor Requirements . 48 7.3 Economic Costs and Benefits . 49 ANNEXES 1. Cost Estimates, Expenditures, Disbursements and Allocation of Loan Proceeds 2. Crop and Farm Budgets 3. Schedule of Early Events 4. Related Documents and Data Available in Project Files List of Figures 3.1 Implementation Schedule 4.1 Organization Chart - Director General Water Resources Development 4.2 Organization Chart - PROSIDA 4.3 Organization Chart - DPMA 4.4 Organization Chart - DOR 4.5 Organization Chart - Jatiluhur Authority 5.1 Cipamingkis Subproject - Proposed Cropping Calendar 5.2 Jragung Subproject - Proposed Cropping Calendar List of Maps IBRD 13142 Irrigation Project XI IBRD 13144 Cipamingkis Subproject IBRD 13531 Jragung Dam Subproject INDONESIA IRRIGATION XI 1. BACKGROUND General 1.01 The Government of Indonesia (GOI) has requested Bank assistance for the construction of a weir and irrigation system for the 7,600 ha Cipamingkis area of West Java; the construction of the access road, diversion tunnel and base camp as the first stage of the Jragung Dam project in Central Java; the initiation of a water resource development oriented hydrologic measurement program throughout Indonesia; preparation of a master plan for the conserva- tion and development of the water and land resources of the Cimanuk River Basin in West Java; and the review and conduct of studies for irrigation development and review and completion of designs for flood control in the lower Cimanuk, Cipanas and Ciwaringin rivers. 1.02 The feasibiity studies for the Cipamingkis subproject was initially prepared with local consultant assistance (P.T. Indah Karya) and updated by the Jatiluhur Authority; for the Jragung Dam subproject, feasibility studies were prepared under PROSIDA with consultant assistance (ECI) from USAID. The Hydrologic Measurement Program was prepared by the Directorate of Hydraulic Engineering (DPMA) and the Cimanuk River Water Management Program by the Directorate of Rivers, with consultant assistance from Gadja Mada University. The Agricultural and Rural Sector 1.03 Major Issues. The major issues facing the agricultural and rural sector in Indonesia are: the need to create productive employment oppor- tunities to raise the incomes of the rural poor; the need to increase domestic food supply to keep pace with rising demand; the need to expand production of agricultural exports, particularly smallholder tree crops; and the need to ensure productive, sustainable use of Indonesia's varied land, water and other natural resources. These issues are all interrelated. Their solution will necessarily involve complex and sometimes novel technical and organiza- tional approaches, along with attendant risks that must be recognized and accepted if programs are to be developed to deal with Indonesia's problems on the requisite scale. The risks of action must be weighed against the risks of inaction in the face of widespread poverty and underemployment, growing food import requirements, and ecological damage caused by insufficient control of deforestation in the most densely populated areas. 1.04 Role and Performance of the Sector. Although the contribution of agriculture to GDP and exports has declined during the last 15 years, the rural sector continues to be of overwhelming importance to the vast majority of the Indonesian people in terms of employment, incomes and food production. Some 80% of the country's 135.5 million people /1 live in rural areas. With the exception of oil palm and tea, agriculture is dominated by smallholder /1 Estimate for mid-1978 based on Inter-Censal Population Survey of March 1976. -2- production; there are some 14.4 million smallholdersproducing subsistence and cash crops on 14.2 million ha and 1,800 large estates occupying 2.2 million ha. Over the five years to 1976, the growth rate of agricultural production has been uneven, averaging 3.8% while total GDP grew at 7.9%. In 1977, agriculturalperformance was disappointing. For the second straight year, rice productionwas plagued by inadequate or untimely rainfall in many parts of Java, and by pest and disease damage to high yielding varieties. In view of the critical role of agricultureas the primary source of house- hold income for over half of all Indonesians,the slowdown in agricultural growth takes on considerablesocial significance. 1.05 Development Problems and Potentials. In Java, the cultivable land is almost fully utilized and in some areas, agriculturalland use already exceeds ecologicallysafe limits.
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