DocumeIlt of The World Bank
FOR OFFlCIAL USE ONLY Public Disclosure Authorized
Report No. 13630
PROJECT CO~LETION REPORT
lNOONESIA Public Disclosure Authorized
CENTRAL AND WEST JAVA PROVINCIAL IRRIGATION DEVELOPMENT PROJECT (LOAN 2649-IND)
OCTOBER 25, 1994 Public Disclosure Authorized
Agriculture Operations Division Country Department III Public Disclosure Authorized East Asia and Pacific Region
This document bas a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may Dot otherwise be disclosed without World BanI.; authorization. CURRENCY EQUIVALENTS
At appraisal (December, 1985)
US$1.00 = Rupiah (Rp) 1,100
During Implementation (March, 1986 - June, 1993)
US$1.00 = Rupiah (Rp) 1,120-2,050
Current (March, 1994)
US$1.00 = Rupiah (Rp) 2,105
FISCAL YEAR OF mE BORROWER
April 1 - March 31
WEIGHTS AND MEASURES
Metric System
ABBREVIA TIONS AND GWSSARY
ADB Asian Development Bank AOU Advanced Operations Unit APBN Central Government Budget BAPPENAS - National Development Planning Agency CIDA Canadian International Development Agency DGWRD Directorate General of Water Resources Development EEC European Economic Community EOM Efficient Operation and Maintenance ERR Economic Rate of Return GOI Government of Indonesia ICB International Competitive Bidding IPEDA Land Tax (Now replaced by PBB) ISF Irrigation Service Fee ISSP Irrigation Subsector Project JIWMP Java Irrigation Improvement and Water Resources Management Project LCB Local Competitive Bidding MOF Ministry of Finance MPW Ministry of Public Works MTR Mid-Term Review O&M Operation and Maintenance PBB Property and Building Tax PCR Project Completion Report PME Project Monitoring and Evaluation PRIS Provincial Irrigation Service RSI Resident Staff Indonesia ROM Reference Operating Model SAR Staff Appraisal Report FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A.
Office of Director-General Operations Eveluation October 25, 1994
MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT
SUBJECT: Project Completion Report on Indonesia Central and West Java Provincial Irri~ation Development Project (Loan 2649-IND)
Attached is the Project Completion Report on Indonesia - Central and West Java Provincial Irrigation Development Project (Loan 2649-IND). Parts I and III were prepared by the East Asia and Pacific Regional Office. Part II was prepared by the Borrower.
The project was the third in a series of provincially based operations with the objective of improving the capacity and efficiency of the provincial irrigation services to design and construct small and medium-scale irrigation systems, through the implementation of physical works and on-the job in-service training. The project financed a six year time slice of the provincial programs which specifically included (a) rehabilitation of 60,000 ha of existing systems and construction of 74,000 ha of small and medium-scale schemes; (b) preparation of detailed design for the rehabilitation or upgrading of existing systems, and development of new systems, totalling in all 140,000 ha; (c) land surveys; (d) construction of a new 11,000 ha run-of-the-river scheme (Dumpil); and (e) consultancy services for the on-the-job training, project co-ordination and special studies.
The provincial design and works programs were completed under cost, and the re estimated rates of return were the same as, or greater, than at appraisal. However, the outcome of the Dumpil project (12 percent of total project costs) was less satisfactory. Soil survey and canal design proved to be inadequate and there was a 20 percent overall cost increase and implementation delays. The reestimated rate of return for this component was 6 percent. Overall, however, the institutional impact of the project was substalitial, sustainability is considered likely, and the project outcome is judged as satisfactory.
The Borrower, in Part II, notes that a further increase in the capacity of the provincial services will be necessary, that benefits may not be as great as forecast, and that there continue to be problems with user support of scheme operations and maintenance.
The completion report provides an adequate account of project implementation. An audit is planned. .. ~:dr ..... ---- . ------'
Attachment
This document 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.
FOR OFFICIAL USE ONLY
INDONESIA
CENTRAL AND WEST JAVA PROVINCIAL IRRIGATION DEVEWPMENT PROJECT (Ln 2649-IND)
PROJECT COMPLETION REPORT
TABLE OF CONTENTS
Page No.
Preface ...... Evaluation Summary ...... ii-v
PART I: PROJECT REVIEW FROM THE BANK'S PERSPECTIVE . . . . . 1
Project Identity ...... 1 Project Background ...... 1 Project Objectives and Description ...... 2 Project Design and Organization ...... 3 Project Implementation ...... 5 Project Results ...... 10 Project Sustainability ...... 13 Bank Performance ...... , 14 Borrower Performance ...... 16 Project Relationship ...... 17 Consulting Services ...... 18 Project Documentation and Data ...... 20
PART II: PROJECT REVIEW FROM THE BORROWER'S PERSPECTIVE 21
PART III: STATISTICAL INFORMATION ...... , 28
Map: Central and West Java including Dumpil Subproject (lBRD 19116)
This document 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.
- i -
PROJECT COMPLETION REPORT
INDONESIA
CENTRAL AND WEST JAVA PROVINCIAL IRRIGATION DEVEWPMENT PROJECT (Ln 2649-IND)
PREFACE
This is the Project Completion Report (PCR) for the Central and West Java Provincial Irrigation Development Project for which a Loan of US$166 million (Loan 2649-IND) was made to the Government of Indonesia in March 1986. The project was cofinanced by an EEC grant of US$18 million towards feasibility studies, design work and the construction of the Dumpil barrage under Dumpil Irrigation component under the project. The Loan Closing Date was extended from December 31, 1992 to June 30, 1993. The last disbursement was made on November 18, 1993. The undisbursed Loan balance of US$I,637,132.31 (approximately 1.0 percent of the Loan amount) was canceled on November 18, 1993.
This PCR was prepared in accordance with the guidelines issued in June 1989. Parts I and III were prepared by a Bank (EA3AG) mission based on: (i) a visit to Indonesia in January/February 1994; (ii) on a PCR for the provincial irrigation development components of the project that had been issued by the Borrower in December 1992 (prepared by Directorate Irrigation-I of the Directorate General of Water Resources Development/Ministry of Public Works with assistance from consultants); and (iii) a review of the Bank's project files.
- ii -
PROJECT COMPLETION REPORT
INDONESIA
CENTRAL AND WEST JAVA PROVINCIAL IRRIGATION DEVEWPMENT PROJECT (Ln 2649-IND)
EVALUATION SUMMARY
Objectives i. The project's main objectives were: (a) to improve the capacity and efficiency of the Central and West Java Provinces to design and construct small- and medium-scale irrigation systems, thus allowing DGWRD to focus on major irrigation works and mUltipurpose water use development; (b) to improve cost recovery to provide funding for operation and maintenance of irrigation systems; (c) to reduce food grain imports and foreign exchange expenditures for rice; and (d) enhance employment and incomes in the agricultural sector.
Implementation Experience ii. Project implementation during the first project year was slow, mainly due to inadequate counterpart funding. Under Part I (Central and West Java Provincial Irrigation Development) project implementation accelerated towards end 1987 and was sustained until completion at end 1992. No particular problems were encountered during implementation of Part I. The physical SAR targets set for Part I of the project were substantially exceeded. The fundamental aims to decentralize irrigation development activities and strengthen provincial institutions have largely been achieved. The implementation of Part II (Dumpil Irrigation) of the project started with a setback when it was discovered that the "detailed" design for the irrigation network were more of feasibility level design. Unforeseen resources were required to bring the designs up to the required standards and prepare construction drawings. The situation was aggravated by (i) new developments which had taken place in the project area since the project was designed; and (ii) the discovery of unstable soils in many parts of the project area. The above factors resulted in significant design modifications and additional structures, which substantially increased the cost for the Dumpil project. They also triggered contract amendments for additional works and extension of completion dates. Additional remedial works are still required. As yet no irrigation has been provided to the project area. The Studies and IPEDA Surveys and Mapping under Part III of the project were completed successfully and as scheduled. - iii -
Results
111. The results of Part I (Central and West Java Provincial Irrigation Development) were highly satisfactory. The SAR targets were exceeded and additional rehabilitation and turnover designs covering about 60,000 and 100,000 ha respectively for implementation under the follow-on JIWMP (signed in July 1994) were developed. The provincial and district organizations under the project performed well. Project implementation was fully integrated into the existing regional organizations and no special project implementation units were established. The total cost for Part I ($166.3 million or 67 percent of overall project cost) was about 28 percent lower, in US Dollar terms, than the estimated cost (including contingencies) at Appraisal. Project monitoring and evaluation (PME) units were established in the Provincial organizations and their work was used to analyze the project at completion. The results show that the overall ERR is estimated at 41 percent for Central Java and 28 percent for West Java compared with 25 percent and 28 percent at appraisal. The results of Part II (Dumpil Irrigation) are less satisfactory. Implementation of Dumpil was problematic and suffered a 20 percent cost overrun. (Actual Dumpil cost $59.6 million or 24 percent of total project cost). This takes into account the cost of the diversion dam, which was financed by an EEC grant, and completed 37 percent (or $5.5 million) below the appraisal estimate. The revised ERR has been estimated at about 6 percent compared to the SAR estimate of 13 percent. Additional inspection roads and canal stability works are still to be implemented. Completion of Dumpil is expected by FY95196. The studies and mapping activities under Part III of the project were carried out as scheduled. The IPEDA reclassification component has resulted in substantially improved tax collection and studies financed under the project were essential for the formulation of new Bank supported projects, such as Dam Safety and Java Irrigation Improvement and Water Resources Management projects. Overall, the ERR for Parts I and II of the project, covering 91 percent of project cost was 27 percent (no ERR was calculated for Part II).
Sustainability iv. Under Part I the project improved the Provincial capacity and efficiency to design and construct small and medium scale irrigation projects. Following rehabilitation and expansion of schemes agricultural production and cropping intensities have increased. The sustainability of these agricultural benefits much depends on the on going efforts to introduce and maintain efficient operation and maintenance (EOM). With the strengthening and expansion of the technical, financial and institutional aspects of EOM under the on-going ISSP-II project (Ln. 3392-INO) and under the JIWMP project (Ln. 3762-INO) as well as GOl's general support for O&M, project benefits are expected to be fully sustainable throughout the project's economic life. For the Oumpil Irrigation Project (part II) to become sustainable, several technical issues need to be addressed and resolved. They range from (i) completion of tertiary systems; (ii) operating and maintaining canals in unstable soils; and (iii) optimizing utilization of the investments made. Operation and maintenance deficiencies caused by unstable canal banks threaten the sustainability of the project and further reduce the economic return of the investments made for the Oumpil project. Some remedial works have already been carried out, but considerable additional works comprising canal lining and retaining walls to the sideslopes, are required. Under the recently approved JIWMP (Ln. 3762-INO) support is provided - iv - for the implementation of remedial works on the Dumpil scheme at an estimated cost of $9.0 million. However, the support is subject to the Bank receiving (i) acceptable design and cost estimates for the works and (ii) evidence of adequate water availability during the low flow season.
Findings and Lessons Learnt v. The overall conclusions are that the project achieved its objectives in terms of physical development and institutional strengthening. The most important lessons learnt under the project are:
(a) the "detailed" designs for the Dumpil project should have been reviewed more carefully at the time of appraisal. Failure to check that the designs were based on accurate field data resulted in costly design revisions and a substantially lower ERR than projected at appraisal;
(b) while provincial staff on Java is now capable to manage large numbers of design and construction tasks each year, continued attention needs to be paid to ensure good quality;
(c) the design and construction phases for a particular scheme should not overlap;
(d) the establishment of design units in the PRIS have improved provincial capacity to undertake and supervise design work;
(e) for the construction of works maximum use has to be made of the dry season. Where needed major works should be constructed through multi year contracts;
(f) O&M procedures have to be made scheme specific.
(g) PME activities are essential for scheme performance and for proposing modifications in future works. vi. The project successfully incorporated the lessons learnt from the East Java Provincial project (LN 2119-IND). This applied in particular to the redirection of consultant inputs towards the strengthening of planning, design and construction quaHty capabilities. The project confirmed also the need for GOI/DGWRD to give priority to projects on Java which aim at improving the efficiency of utilizing water resources in the face of competing demands from agriculture, municipal and industrial purposes.
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PROJECT COMPLETION REPORT
INDONESIA
CENTRAL AND WEST JAVA PROVINCIAL IRRIGATION DEVELOPMENT PROJECT (Ln 2649-IND)
PART I. PROJECT REVIEW FROM THE BANK'S PERSPECTIVE
1. Project Identity
Project name : Central and West Java Provincial Irrigation Development Project Loan No. : Loan 2649-IND RVP Unit : East Asia Region Country : Indonesia Sector : Agriculture Subsector : Irrigation
2. Background
2.1 Although Indonesia in 1985 was already self-sufficient in rice, steady increases in national rice consumption and the limited scope for expanding irrigated agriculture on Java, made it necessary for the country to intensify food production by rehabilitating irrigation systems where required and by expanding existing medium and small village irrigation schemes. At the time, the major national objectives for the agricultural and rural sector included the creation of productive employment to raise incomes of the rural poor, the increase of domestic food supply to keep pace with rising demand and to ensure productive, sustainable use of the country's varied land, water and other natural resources. In this context it was widely felt that in Java Government needed to provide further support to increase food production to a sustainable self-sufficiency level, thus reducing food grain imports and foreign exchange expenditures for rice and enhance employment and incomes in the agricultural sector. At the same time it was felt that this would be difficult to achieve, without decentralization of responsibilities to provincial irrigation services and in addressing institutional issues related to physical and financial aspects of irrigation development at provincial and local government levels.
2.2 The Central and West Java Provincial Irrigation Development Project was initiated at the request of the Government of Indonesia to support its program of irrigation development in the Provinces of Central and West Java, comprising: rehabilitation of existing irrigation systems, upgrading for efficient operation and maintenance, development of new or expansion of existing medium and small-scale schemes, strengthening of the provincial irrigation services and reclassification of irrigated lands for reassessment of land taxes. In addition GOI requested support for the construction and development of a new 11,000 ha run-of-the-river diversion scheme on the Lusi river. The activities were considered in line with GOI's goal of increasing irrigation development capacities at - 2 - provincial and regional levels in order to reduce demands on the Central Government's Directorate General of Water Resources Development (DGWRD) in the Ministry of Public Works (MPW) and improve indirect cost recovery. GOI also requested assistance for training, project management and construction supervision, studies and detailed designs for new projects.
3. Project Objectives and Description
3.1 The project's principal objectives were: (a) to improve the capacity and efficiency of the Central and West Java Provinces to design and construct small- and medium-scale irrigation systems, thus allowing DGWRD to focus on major irrigation works and mUltipurpose water use development; and (b) to improve cost recovery to provide funding for operation and maintenance of irrigation systems.
3.2 The project comprised of three main parts: Part I - Central and West Java Provincial Irrigation Development; Part II - Dumpil Irrigation and Part III - Studies and IPEDA Surveys and Mapping. They covered the following:
Part I: Central and West Java Provincial Irrigation Development
A: Irrigation Development
(i) rehabilitation of 60,000 ha of existing irrigation systems, upgrading of existing rehabilitated systems (55,000 ha) and construction of 74,300 ha of small (50 to 500 ha) and medium (500 to 4,000 ha) scale schemes;
(ii) preparation of detailed designs for the rehabilitation of existing schemes (90,000 ha) and the development of small and medium scale schemes (45,000 ha) and for upgrading existing systems (50,000 ha) to be used as pilot training areas for field staff;
B: Institutional Development and Facilities
(i) consultant services for on-the-job training, project coordination, construction supervision and studies for future projects;
(ii) construction of offices and support for field training, monitoring and evaluation and strengthening of water users associations;
(iii) procurement of vehicles and miscellaneous office, survey and hydrological equipment;
Part II: DumpiJ Irrigation
(i) construction of a new diversion scheme on the Lusi River at Dumpil in Central Java serving about 11,300 ha of new irrigable land; - 3 -
(ii) engineering and construction supervision of the Dumpil scheme;
Part III: Studies and IPEDA Surveys and Mapping
(i) detailed design of drainage works in Dolok-Penggaron and studies as well as related design of irrigation and drainage designs for the Tuntang-Jragung area;
(ii) feasibility study and detailed design of the Bongo irrigation project in North Sulawesi.
(iii) aerial photographs, rectified photomaps, demarcation of property boundaries and listing of land owners for villages covering about 670,000 ha, which irrigation systems were rehabilitated under Bank and ADB assistance;
(iv) provision of equipment and training for the IPEDA central and provincial staff; and
(v) technical assistance for review and supervision of mapping and survey activities.
4. Project Design and Organization
Part I: Central and West Java Provincial Irrigation Development
4.1 The fundamental aim of the project was to strengthen the provincial irrigation services through the implementation of physical works and on-the-job in-service training. The design of the provincial irrigation development activities in Central and West Java under the project benefitted from lessons learnt by GOI and the Bank from completed Bank-assisted irrigation development operations and from the then ongoing East Java Irrigation Project (Irrigation XVII; Ln 2119-IND). Key lessons included the need to fully integrate the project into the provincial organization, the possibility of expanding on the-job training to irrigation districts in the provinces, improve O&M services, provide technical and administrative support to Water Users associations and promote efficient water use. The lessons were incorporated in the project design. Similar to the East Java Irrigation Project the focus was on a large number of small schemes which since their establishment had received little maintenance andlor rehabilitation attention.
4.2 The introduction of efficient operation and maintenance of the main systems, which was not a formal project component, became an important activity under the project after GOI in 1986 took a series of policy related measures to improve the introduction of efficient O&M, which was a key component under ISSP-I and II. This was particularly important for the works to be carried out under the project, because it ensured that the benefits of rehabilitation and upgrading of the medium and small scale schemes would be sustained in the future. In 1989 five trial areas or Advanced Operations Units (AOUs) in each province were also established under the project, with the overall objective of trying out and refining O&M procedures prior to their implementation throughout the province. - 4 -
4.3 The project design and organization intended to support GOI's decentralization effort and to facilitate project implementation. This was largely achieved. In both provinces the project was implemented by the respective Provincial Irrigation Services (PRIS).ll At the central level the Directorate General of Water Resources Development (DGWRD) as represented by Directorate of Irrigation I (DOl-I) was the executing agency. It was to provide project coordination, technical guidance and administrative support to the Project.
4.4 The time-slice approach was used to identify schemes suitable for inclusion under the project, based on an extensive priority evaluation carried out during project preparation which gave weights to water availability and use, size of schemes, expansion of irrigable areas, condition of the system, a minimum economic rate of return (ERR) of 13 percent and equitable distribution within the provinces. The project called also for the establishment of Project Monitoring and Evaluation (PME) units in both provinces and implementing M&E programs by September 1987.
Part II: Dumpil Irrigation
4.5 The Dumpil project, a large scale irrigation expansion project (11,300 ha), was prepared by DGWRDIDOI-II with assistance from consultants. A feasibility report, followed by detailed designs and tender documents for the civil works, were completed in early 1985. The ERR for Dumpil project was estimated at 13 percent. The relatively low rate of return was due to the high investment cost of $3,000 per ha. A more critical review at project preparation of the existing engineering design of the Dumpil irrigation project would have identified considerable technical problems with canal alignments and design and avoided cost-overruns. It may even have led to an ERR below the opportunity cost of capital in Indonesia of 10 percent at that time and to the conclusion that it would not be economically feasible to proceed with the implementation of the scheme. Substantial detailed design work on the scheme had to be redone during project implementation and resulted in increased work quantities and costs. These factors delayed completion of the Dumpil project and reduced the ERR to an estimated 6 percent. At the time of loan closure additional works comprising canal lining and retaining walls would be required to make the project fully operational.
Part III: Studies and IPEDA Surveys and Mapping
4.6 Studies and the IPEDA/PBB mapping and reclassification work formed part of the project. Activities supported under this project, which were not envisaged at appraisal, were (i) feasibility and design studies for the rehabilitation of twelve dams in Central and West Java; and (ii) the preparation of the follow-up Java Irrigation Improvement and Water Resources Management Project (JIWMP).
II Now called Provincial Water Resources Service (PWRS) - 5 -
5. Project Implementation
Part I: Central and West Java Provincial Irrigation Development
5.1 General. Project implementation during the first project year was slow, mainly due to inadequate counterpart funding for FY86/87. However, towards end 1987 project implementation progress accelerated considerably, which was sustained until project completion end 1992. Part I has more then achieved its main objectives and targets set at appraisal. On the physical side project achievements substantially exceed the SAR targets (82 percent for design and 17 percent for construction). Design and construction of tertiary systems was not foreseen at appraisal. However, under the project tertiary system design was carried out for about 80,000 ha and construction on close to 45,000 ha, which completed distribution systems for several medium irrigation schemes. The performance of the provincial and district organizations under the project has been commendable. The fundamental aims to decentralize irrigation development activities and strengthen the provincial institutions have largely been achieved. Project implementation was fully integrated into the provincial organizations, without establishing special project implementation units. Under the project comprehensive training in planning, design, construction supervision and operation and maintenance was provided to provincial and district staff at all levels. Water users' training was addressed mainly through the AOU's.
5.2 Civil Works. The main expenditure item was the construction of medium and small scale schemes, rehabilitation and upgrading works. Construction quality, which received inadequate attention in the initial project years, gradually improved over the years. The implementation of a comprehensive construction supervision training program improved significantly staff capabilities and staff awareness in this area. Following the training there was more focus on ensuring that technical specifications were met, which in many cases led to the use of better construction materials than before.
5.3 The overall achievements for design compared to appraisal targets are given in Table 4. Design targets have mostly been exceeded. Most designs were carried out by third party local consultants and supervised by provincial staff with assistance from the project consultants. Extensive use was made of standard design criteria and guidelines developed under the project for all categories of work. The criteria and guidelines were based on the 1986 DGWRD Irrigation Design Standards. The main areas which frequently presented difficulties were hydrology, mapping and aerial photography, the preference for lining as a solution for most canal problems and inadequate provision for dealing with cross drainage. Despite these constraints progress achieved in the design area well exceeds targets set at appraisal.
5.4 The overall construction achievements under the different categories of work are also given in Table 4. The original appraisal targets were revised during the 1989 mid-term review. In general the final achievements in both provinces exceed the original targets. The construction program was modified each year in line with budget availability, development priorities, design availability and the need to spread the work as equitably as possible over each province. There was considerable variation in the quality of the completed works. However, there has been a steady improvement in quality over the lifetime of the project. For example the quality of gate manufacture and installation - 6 - improved substantially, although continued attention is required with respect to compliance with dimensions and specifications.
5.5 Procurement of civil works was carried out mainly through Local Competitive Bidding (LCB) procedures. International Competitive Bidding (ICB) procedures were used for the Babang scheme in Central Java and Cikuntan scheme in West Java. For LCB standard documents, based on DGWRD and Bank guidelines were used. Most LCB contracts were completed satisfactorily, sometimes with cost over-runs and substantial delays. Quantity variations were mostly due to incomplete design, while delays were caused by problems related to late availability of funds, land acquisition, submission of contract documents, construction periods coinciding with the rainy season, lack of geological and soil investigations, variations in quantities and incompetent contractors. Some contracts were terminated and completed by new contractors. The ICB documents were prepared by the project consultants, based on existing ICB documentation. All ICB contracts were awarded to Indonesian contractors. The ICB package for Bapang II was terminated with 40 percent completed, due to poor performance of the contractor. The remaining work was retendered under LCB procedures and completed satisfactorily.
5.6 Under the project 207 and 300 Juru houses were constructed in Central and West Java respectively, compared to 300 planned at appraisal for each province. In addition provincial, district and sections offices were improved under the project as scheduled.
5.7 Institutional Strengthening. The institutional strengthening activities under the project focused on further developing through training the considerable staff skills existing in both Provincial Irrigation Services. In addition organizational arrangements at provincial and regional levels and awareness of beneficiaries (Water Users Associations) were improved. Following the 1989 mid-term review steps were also taken to improve design group performance, data and document processing, storage of records and communication facilities.
5.8 The time-slice approach proved successful. It gradually improved during project implementation as and when more detailed data was made available. Designs which existed at the start of the project were often found to be incomplete. This led in 1988 to the establishment of comprehensive databases, which listed available data including project name, irrigated areas, lengths of canals and number and type of structures.
5.9 Project Monitoring and Evaluation (PME) was established under the project. PME units have prepared seasonal reports since 1987. The PME activities under the project have covered the medium and small scale rehabilitation and upgrading activities under the project. The economic evaluation carried out at project completion used the PME data.
5.10 The Advanced Operations Units (ADU) program in both provinces were chosen with the objective to introduce and demonstrate efficient operation and maintenance. On average each ADU covered about 5,000 ha with 50 Ian of main and secondary canals and 85 tertiary units. Systems in the AOU area of 50,000 ha were upgraded and used as pilot training areas for field staff. Since 1989 the progress of the - 7 -
AOUs has been evaluated annually, based on which Reference Operating Models (ROMs) were set up for introduction elsewhere. All AOU objectives have been achieved to a substantial degree. A scaled down AOU program continues under ISSP-II (Ln 3392-IND).
5.11 Throughout the course of project implementation both provincial organizations evolved to keep pace with project needs. However, the structure of the PRIS remained virtually unchanged throughout the six year project implementation period, except for minor adjustments at the regional level. They related to the irrigation districts or Wilayahs which were headed by a Pembantu Kepala Dinas (PKD). These PKDs were dissolved in 1991 and are now referred to as WiJayahs in West Java and Coordinating Cabang Dinas (KCDs) in Central Java.2.1 The project derived considerable support from staff at Provincial and KCDlWilayah levels in the day to day implementation of project activities. Staffing levels of different categories remained more or less constant over the lifetime of the project. The number of technical staff generally exceeded those considered necessary at appraisal.
5.12 Training was conducted through courses and seminars, transfer of knowledge, workshops, field visits and on-the-job training. One of the most important considerations was to make training fit into the normal working arrangements of staff at each level, rather than a formal activity over a long period away from the job. Techniques were developed for the evaluation of the benefits gained by trainees. This evaluation covered all categories of work and in particular design, construction supervision and O&M. Transfer of knowledge was primarily undertaken by the project consultants to provincial staff and through them to trainees, local consultants and contractors. This proved an effective process, which took place through the implementation of project work, site visits and discussions. Design groups/units were started in each of the KCDlWilayah to improve the in-house capability. Currently these design groups/units continue in both provinces undertaking similar design work. There is a need to build on the design group/unit concept to improve and sustain the ability to conceive, specify and supervise future work on irrigation planning, design and construction. These groups now serve as ideal training grounds for new staff and also staff who change to other responsibilities in the irrigation development process.
5.13 Other institutional strengthening work carried out success fully related to data and documentation processing and storage, computer and communications facilities, procurement of vehicles and purchase of equipment as envisaged at appraisal. The purchase and supply of vehicles, of which the first batch was to be provided to the project by end September 1986, was much delayed. The ICB procurement process started in early 1988 and was handled at the central level and was outside the control of the PRIS. GOI requested Loan financing for this purchase, to which the Bank agreed through the October 1988 amendment to the Loan Agreement. Bids received were evaluated and awards were made for a reduced number of vehicles following reviews by MOF and BAPPENAS. The Bank stressed the importance of providing adequate transport to project staff and requested that action be taken. Following reviews by MOF/BAPPENAS and DGWRD it was
2/ In Central Java the Head of a coordinating Cabang Dinas, in addition to his duties, is also the head of a Cabang Dinas in the region. - 8 - decided to launch a new ICB tender process, which combined the vehicle requirement of three on-going Bank assisted projects. By early 1991 both projects were finally provided with and adequate number of vehicles and motorcycles, largely in accordance with the requirements estimated at appraisal.
Part II: Dumpil Irrigation
5.14 Designs. The feasibility study (in 1984) and detailed designs (in 1985) for the project were prepared by a joint venture of foreign/local consultants prior to project appraisal. As is common practice the construction drawings were to be developed during project implementation. Unfortunately, after the construction of the first works had started it was discovered that the "detailed" designs were more of feasibility level design. As a result significant additional resources were required to bring the designs up to the required standards and to prepare construction drawings. During the initial implementation phase the presence of unstable soils in the project area was found, which should have been detected during field investigations carried out for the project's pre-investment studies. It is clear now that the detailed designs completed in 1985 should have been reviewed more carefully during project preparation and appraisal.
5.15 Civil Works. The Dumpil barrage or diversion weir was completed in 1989. Construction was financed by an EEC grant and carried out by a French contractor (Dumez) in association with Hutama Karya of Indonesia. The structure was formally inaugurated in May 1991. Unfortunately, several essential items were not provided for under the initial contract. These included: (i) electrification of gates, (ii) water measurement devices; (iii) installation of a stand-by generator for the electrical operating system; and (iv) automation system for the barrage gates. It was agreed in 1990 to include and finance those necessary items, which were not in the original design and not envisaged at appraisal, under the contract for the installation of a Flood Forecasting and Water Management System for the Kedung Ombo project (Ln 2543-IND). This contract was awarded in August 1992 and the Dumpil gate automation was given first priority under the contract. The work was successfully completed by December 1993.
5.16 The Project was to finance the Dumpil right and left bank main and secondary canal and inspection road systems to provide irrigation to about 11,300 ha for which detailed designs were completed in early 1985. As it turned out the system layout and detailed designs required significant revisions due to; (i) new developments (like roads, drains etc.) in the project area; (ii) new geological information at the sites of major structures; (iii) unstable soils in several sections on the right and left bank; and (iv) additional hydrological information for drainage design. These changes resulted in significant design modifications and additional structures, which substantially increased the cost for the Dumpil project. The above factors triggered contract amendments for additional works and extension of contract completion dates. An additional $5.6 million was allocated from the Loan in April 1991 towards the estimated cost increase. However, a year later this allocation proved insufficient and the Borrower requested another $5.0 million to complete (i) additional structures in unstable canal sections; (ii) additional drainage culverts and drain improvements; (iii) tertiary canals in 4,700 ha and (iv) main canal inspection roads. At that time uncommitted Loan funds were no longer available and GOI was advised to meet the additional cost of $7.5 million equivalent from FY92/93 and - 9 -
FY93/94 APBN budgets. As a result the Borrower agreed with the Bank to complete the project in two stages: (i) stage I, consisting of construction of the system to serve 6,600 ha which was completed by end 1992; and (ii) stage II, consisting of all remaining works which were to be completed by end 1993. However, the Borrower allocated inadequate funds under FY93/94 and tertiary systems for 4,700 ha and drainage works are to be completed during FY94/95 and 95/96. In addition the sustainability of the project is in danger because the main and secondary canal systems have suffered serious damage due to unstable soil conditions throughout the project area. Bank support for remedial works has been provided under JIWMP (Ln. 3726-IND).
5.17 Institutional Strengthening. The Dumpil project was implemented under the responsibility of the Jratunseluna River Basin project office, with general coordination and guidance from the Directorate of Irrigation II in DGWRD. The J ratunseluna staff was responsible for construction planning and quality, for which it obtained assistance from a joint venture of local and foreign consultants. The foreign consultant had full responsibility for design review of the barrage and was to provide assistance to project staff for construction supervision and quality control. A similar agreement was made with the local consultant, who was to be responsible for design review of the irrigation system and provide supervision assistance to project staff. This arrangement, which did not function well, meant that project staff was primarily responsible for construction supervision. Based on variable construction quality the Bank, during the mid-term review in July 1989, recommended assigning full responsibility for construction supervision to the consultants. In mid-1990 it was agreed in view of the irrigation system design problems, to retain the foreign consultant to work with project staff and local consultants on resolving the design and construction problems and improve construction quality. The Borrower reluctantly agreed and an experienced construction engineer was assigned to improve construction standards of the project and to supervise the construction of special measures for canal stability in the problem areas. This assignment contributed somewhat to improvements in construction quality. No consultants were employed after August 1992, except for design and installation of automation of the Dumpil barrage gates.
Part III: Studies and IPEDA Surveys and Mapping
5.18 Studies. The Bongo Irrigation Project feasibility study was carried out by consultants. This study started mid-1987 and was completed by mid-1988. The proposed project (12,000 ha) proved technically and economically (ERR 18 percent) feasible. Hence, the consultants were authorized to proceed with preparation of detailed designs, which was completed by mid-1989. CIDA appraised the project end 1988 on the basis of which it agreed with GOIIDGWRD to support the implementation of part of the project (4,500 ha). However, after the North Sulawesi Provincial Government decided to grant permission to large scale sugar cultivation in the area, GOIIDGWRD decided not to implement the proposed irrigation works.
5.19 The Dolok-Panggaron and Tuntang-Jragung studies, which consisted of the preparation of; (i) detailed design for about 6,500 ha at Dolok-Panggaron in Central Java; (ii) an updated masterplan and feasibility study to integrate the water resources of the Tuntang and Jragung rivers to service about 40,000 ha; and (iii) detailed design of the Glapan Barrage on the Tuntang river following, were financed under the EEC grant. The - 10 - selection of consultants under EEC procedures proved time consuming. Contracts were awarded in early 1990 and the work was completed by mid-1991. At the end of 1992 DGWRD requested the EEC to provide support for the implementation of the Dolok Panggaron and the Glapan barrage. The EEC has not yet responded to this request.
5.20 At the request of GOIIDGWRD the Bank agreed in 1989 to support under the project a consultancy to review safety and stability of five existing dams in Central Java and one in West Java. Consultants appointed in 1989 completed the studies in May 1991. At about the same time it was decided to extend the review to another six dams in Central Java. This work, including design of needed rehabilitation works, was completed by end 1992. The studies identified the need for emergency repairs at the Cacaban and Tempuran dams in Central Java, which were carried out and financed under the project. Rehabilitation works valued at about $15 million were identified as needed on the balance ten dams. These works are scheduled to be implemented under the Dam Safety project (Ln. 3742-IND), which was signed in July 1994.
5.21 At the time of the mid-term review (mid-1989) discussions started on the need to prepare a follow-up irrigation rehabilitation project for West, Central and East Java. In mid-1991 the Bank agreed with the Borrower to finance under the project the preparation of a future Java irrigation improvement project, with added emphasis on activities initiated under ISSP such as river basin water management, expansion of the ISF program, and turnover of small schemes to the beneficiaries. Consultants were appointed in early 1992 to prepare the Java Irrigation Improvement and Water Management Project (JIWMP). The project preparation report was submitted in early 1993.
5.22 IPEDA Surveys and Mapping. The IPEDA/PBB activities, which called for mapping and reclassification of about 670,000 ha in eight large irrigation schemes in both provinces, started late. The work was divided in six contracts and the first bid documents were cleared by the Bank mid-1987 and awarded in early 1988. The work was to be completed by end 1989. Two local conSUlting firms were contracted to supervise three contracts each. They were to ensure the accuracy of the field and office work undertaken by the contractors. They were also to provide practical training to about sixty PBB staff. By mid-1990 four of the six contractors had completed their work. The property tax bills for 1990 for these four areas were prepared on the basis of the new data. The remaining two contracts for the Pemali and Ceribon areas were completed by mid- 1991. Estimates prepared by the PBB directorate showed that the reclassification carried out under the first contracts of the project had resulted for tax year 1990 in a tax collection increase of about 65 percent. The equipment planned under the project for the regional PBB offices was all procured, installed and tested albeit with delay.
6. Project Results
Part I: Central and West Java Provincial Irrigation
6.1 General. The results of the Central and West Java Provincial Irrigation subproject are highly satisfactory. They generally have exceeded the projections made at appraisal. In addition designs were prepared for about 62,000 ha of rehabilitation works - 11 -
and about 104,000 ha of turnover works for possible implementation under the Java Irrigation Improvement and Water Resources Management project (JIWMP). Under the project design units staffed by young qualified engineers were established in the Provincial Services. These units received project support in terms of equipment, facilities and training from the project consultants, and as a result these units were able to carry out a substantial amount of new designs and to supervise design work carried out by local consultants. They are a valuable assets for both Provincial Services and are expected to continue and expand the design activities under JIWMP.
6.2 Cost. The total cost for the Central and West Java Provincial Irrigation subproject was estimated at Rp.244.69 billion ($222.45 million at Rp.l ,100 to one dollar) at appraisal. The cost at completion was Rp.324.76 billion ($173.69 at actual exchange rate varying from Rp.I640 in September 1986 to Rp.2050 in June 1993). On September 12, 1986 the Rupiah was devalued to Rp.I640 to one dollar. The Bank agreed not to reduce the Loan amount, as the project was designed to finance a five year slice out of the overall twenty year provincial irrigation development program in the two provinces. This made it possible to increase the implementation targets under the project. This was done at the time of the mid-term review in July 1989. In dollar terms total expenditures were 28 percent lower than the estimated costs at appraisal. The biggest expenditure increase was for the Consultancy for Coordination and Training; about 43 percent. Land acquisition cost was substantially less (more than 50 percent) than estimated.
6.3 Monitoring and Evaluation. The Project Monitoring and Evaluation (PME) unit was established end 1986 and the PME action plan was prepared in March 1987. A revised action plan was prepared in May 1988 following comments from various sources. PME covered the four separate subprojects of medium scale, small scale, rehabilitation and upgrading. Seasonal and annual reports were prepared by the PME units from 1987 to 1992. Primary indicators used for evaluation were cropping intensity, crop yield and net farm income. The PME results show that post-project paddy yields are generally lower than originally estimated at appraisal and considerably lower than those reported by the regional offices (Ranting Dinas) and local government district offices (Kabupaten). Paddy yields are showing an upward trend in selected areas, with some exceptions. Cropping intensities are generally higher than appraisal targets in most areas where PME surveys were carried out. There are still shortcomings to be improved for PME activities under the project. More coordination is required with other agencies, such as PRAS and Bappeda.
6.4 Advanced Operations Unit (AOU) Program. The AOU program under the project has largely achieved its objectives. Agricultural production in the 30,000 ha program areas has increased due to substantial investment in main and tertiary system upgrading, improved water management and improved staff capability. The AOU program has been expanded in the provinces through the efficient O&M program under ISSP-II. Most of the improvements are expected to involve simplification and modifications of the procedures, preparation of guidelines and on-the-job training rather than the capital investment (upgrading) applied under this project.
6.5 Rate of Return. The rates of return (ERR) at appraisal and re-estimated at completion are summarized in Table 6. The results show that project benefits have - 12 - surpassed the estimates made at appraisal. On average considerably less investment per hectare was made in the project as a whole and medium scale subprojects, and considerably more on upgrading than was originally planned. The project's PME results were used in the analysis. The results show that the ERR of all components together is estimated at 41 percent for Central Java and 28 percent 3/ for West Java compared with 25 percent and 28 percent at appraisal.M The highest returns were realized for the upgrading subprojects (45 percent and 79 percent), the lowest for medium scale subprojects (14 percent and 16 percent). It must be noted that at the time the ERRs were re-estimated the construction had only just been completed and benefits resulting from the improvements were starting to develop. Even if the incremental production is halved the overall ERR for Central Java would be 22 percent and 17 percent for West Java. Only the medium scale subproject in both projects will fail to reach an ERR over 15 percent.
Part II: DumpiJ Irrigation
6.6 General. Implementation of the Dumpil project has been problematic and has suffered a substantial cost overrun. 001-11, through the Jratunseluna project management unit, was unable to complete the scheme as scheduled. An extension of the Loan Closing date with six months to June 30, 1993 was required to complete stage I to irrigate 6,600 ha. The Borrower was to fully finance the remaining works, including additional drainage, inspection roads, canal stability works and tertiary systems. While some of these works have been constructed, 100 percent completion is not expected to be achieved until FY95196.
6.7 Cost. The discovery of unstable soils, omissions in designs and necessary design revisions have resulted in a 20 percent overall cost increase from $48.8 million to $59.0 million) of the Dumpil project. These figures include the cost of the diversion dam, which was financed by an EEC grant and completed 37 percent or $5.5 million below the cost estimated at appraisal ($14.7 million including contingencies). If the EEC supported portion is excluded than the cost of the remaining Dumpil project works increased from $34.1 million (SAR estimate) to $50.9 million or by about 50 percent.
6.8 Rate of Return. The rate of return (ERR) was re-estimated in June 1987 taking into account the expected delay in implementation and the reduced benefits due to lower agricultural prices. At that time there was not yet any indication that the SAR cost estimate would go up considerably. The revised ERR was 10.6 percent compared to the SAR estimate of 13 percent, and it was concluded that the Dumpil subproject continued to be economically viable. However, it is estimated that the 20 percent cost increase, delayed project implementation and the less than expected availability of dry season irrigation water have reduced the ERR below 6 percent.
'JJ Without upgrading subproject projections.
11 With upgrading subproject results. - 13 -
Part III: Studies and IPEDA Surveys and Mapping
6.9 The studies and IPEDA/PBB activities included under the project were completed as scheduled. The IPEDA/PBB reclassification work has resulted in substantially improved tax collection. The studies carried out of the Bongo Irrigation project have not led to the construction of this 10,000 ha scheme in North Sulawesi, because the Provincial Government had different plans for the area. The results of the Central and West Java dam rehabilitation studies, initiated under the project in 1990, are included in the Dam Safety Project (Ln. 3742-IND), for which a Bank Loan was signed in July 1994. Another unforeseen activity under the project-the preparation of the JIWMP-was financed with proceeds of Loan 2649-IND. The proposed project was appraised in November 1993 and approved in June 1994.
7. Project Sustainability.
Part I: Central and West Java Provincial Irrigation
7.1 The Project has improved substantially the capacity and efficiency of the Central and West Java Provinces to design and construct small and medium scale irrigation projects. The implementation of JIWMP will ensure that the design and construction supervision capacities introduced in both provinces will be sustained during the implementation period of this project and beyond. Sustainability of these skills will depend on further training and attention to the provision of routine budgets for hydrology, planning, design groups and institutional training.
7.2 Following the implementation of rehabilitation works and expansion of medium and small schemes agricultural production and cropping intensities have already gone up. The sustainability of these agricultural production benefits much depends on the on-going efforts to maintain efficient operation and maintenance. With the ongoing strengthening and expansion of the technical, financial and institutional aspects of efficient O&M under the ongoing ISSP-II project and under JIWMP as well as GOI's general support for O&M, it is expected that project benefits will be fully sustainable throughout the project's economic life.
Part II: Dumpil Irrigation
7.3 For the Dumpil Irrigation development project to become sustainable, several technical issues need to be addressed and resolved. They range from (i) completion of tertiary systems; (ii) operating and maintaining unlined canals in unstable soils; (iii) water availability during the low flow season; and (iv) optimizing utilization of the investments made.
7.4 Tertiary Works. GOI will need to provide adequate funding to complete tertiary systems on about 5,000 ha of the Dumpil command area. Without the implementation of these tertiary systems it will be difficult to introduce efficient water management, irrigate fully the entire command area and achieve the projected cropping intensities. Project water-users are expected to participate more actively in the operation - 14 - and maintenance activities of the project works and to organize water users associations, once tertiary systems are extended over the entire project area.
7.5 Unstable Soils. The original design shortcomings of the irrigation system may threaten the sustainability of the main and secondary infrastructure works. The canal system was originally designed on the basis of an unlined canal system. The discovery of instable soils in significant portions of main and secondary canal alignments after the construction of works had started required costly design changes. If this soil condition had been known at the time of project preparation, a large part of the system would have been designed as a lined system with narrower and deeper canals involving less earthwork and smaller lined cross-sections. This solution would have costed less than the system built under the project. Costly rehabilitation works, in particular selected lining of canals sections, and maintenance works will be required in the years ahead to keep the system fully operational. Maintenance deficiencies, therefore, may threaten the sustainability of the project and reduce the economic return of the investments made under the project.
7.6 Storage Development. The Oumpil project was designed for wet season supplemental irrigation only, mainly because the Lusi river provides little dry season flow. However, preliminary studies have identified the possibility of storage development (about 70 Mm3) on the Lusi river upstream of the Dumpil diversion weir at Banjarejo at an estimated cost of $60 million. Half of the cost will be required for land acquisition, compensation and resettlement. Bank supervision missions advised GOIIDGWRD to carry out studies to determine whether the construction of a storage facility upstream of the diversion dam would be technically and economically viable. Such a facility would optimize the utilization of the Dumpil project and make it more sustainable. Feasibility studies of the Banjarejo reservoir project have yet to be initiated.
8. Bank Performance
8.1 Preparation and Appraisal. The Central and West Java Irrigation Project was the second Bank supported project 5.,/ which was largely implemented by Provincial Irrigation Services (PRIS). The Bank's assistance in project identification and preparation, which was based on studies carried out by consultants employed by the Borrower, was timely and resulted in the formulation of a suitable project implementation plan. Project formulation took into account the lessons learned from the implementation of the East Java Irrigation Project (Irrigation XVII; Ln 2119-INO). In particular the Bank made sure that project implementation was fully integrated into the existing provincial organizations. The appraisal overall was well received. The time-slice program approach for the irrigation development activities in Central and West Java under the project proved highly appropriate and timely. The strengthening of Operation and Maintenance under the project got a major boost in 1986, when GOI took a series of policy related measures aimed at introducing Efficient Operation and Maintenance (EOM). This led to World Bank and ADB support for major lending operations (ISSP-I, IISP, and ISSP-II projects), which
~I The first such project was Irrigation XVII (East Java Province) Ln 2119-IND. which was completed in 1989. - 15 - focussed on introducing EOM in specific project areas, including those rehabilitated and expanded under this project (Ln 2649-IND).
8.2 In hind-sight, it is apparent that during project preparation and appraisal inadequate attention was paid to the surveys and detailed designs prepared for the Dumpil infrastructure works. The designs and tender documents, which were prepared during the second half of 1984 with very limited budget, were based on minimum topographical survey and geological data. Most of the design budget available in 1984 was applied to the design of the Dumpil diversion dam and Glapan Barrage project. In 1989 additional topographical survey and geological investigations were carried out, which required major design revisions and resulted in a large cost overrun. During appraisal it should have been detected that the Dumpil designs available at that time were not detailed enough to serve as the basis for the construction of works.
8.3 Supervision. Project implementation was largely supervised by staff of the Bank's Resident Mission in Indonesia (RSI). RSI staff maintained a regular and generally well-timed supervision schedule throughout the entire 1986 to 1992 implementation period. During that period Bank missions visited the project areas nine times and dealt effectively with supervision matters, including procurement, at RSI. DGWRD officials and project staff, often accompanied by their consultants frequently consulted Bank staff at RSI on a wide variety of project matters and issues. These arrangements, including continuity of Bank staff participation in the supervision activities, established an effective communication channel with DGWRD officials and project staff and helped in resolving project implementation problems and decision making. The project's mid-term review (MTR) was carried out in July/August 1989, on the basis of comprehensive reports prepared by the Borrower. The MTR reviewed the mid-term achievements and established revised physical and financial targets for the project. The design and implementation problems under the Dumpil subproject had not yet been fully identified at the time the MTR took place.
8.4 Loan Management. The Bank showed flexibility by increasing in 1990 the Special Account revolving fund ceiling from $9 million to $12 million and by reallocating "savings" resulting from the September 1986 Rupiah devaluation to revise the implementation targets upwards. The Loan closing date was extended by six month to June 30, 1993, which helped to achieve completion of the Dumpil Irrigation project works.
8.5 Lessons Learnt. The project largely achieved its objectives in terms of physical development and institutional strengthening. The most important lessons learnt under the project are the following:
(a) at the time of appraisal the "detailed" designs prepared for of the Dumpil project should have been reviewed more carefully; in particular the appraisal mission should have ascertained that the designs were based on accurate technical parameters of the irrigable area; failure to do so resulted in costly design revisions leading to a much lower ERR than projected at appraisal;
(b) sustainability of the PRIS ability to implement, operate and maintain projects of this type will depend on further training and attention to the - 16 -
provIsion of routine budgets for hydrology, planning, design groups, training and institutional strengthening;
(c) while PRIS staff is capable to manage large numbers of design and construction contracts each year, continued attention needs to be paid to ensure good quality. Adequate staffing and computers must be made available to implement similar future programs;
(d) design and construction programs for a particular scheme should not overlap. Adequate funds (DIP) need to be released on time;
(e) the establishment of design units in the PRIS have improved provincial capacity to undertake and supervise design work;
(f) for the construction of works, in particular major works such as construction of weirs, maximum use has to be made of the dry season; where needed major works should be constructed through multi-year contracts;
(g) O&M procedures have to made scheme specific;
(h) PME activities are essential for scheme performance evaluation and for proposing modifications in future works.
8.6 The project successfully incorporated some of the lessons learnt from the East Java Provincial Project (Ln 2119-IND). This applied in particular to the redirection of consultant inputs towards the strengthening of planning, design and construction quality capabilities. The project demonstrated also the need for GOIIDGWRD to give priority to projects on Java which aim at improving the efficiency of utilizing water resources in the face of competing demands from agriculture, municipal and industrial purposes. While it was originally envisaged that this project would be followed by a further time-slice operation, the implementation of this project and experiences obtained from the implementation of other projects confirmed the need for future projects to pay more attention to integrated water management across sectors within river basins.
9. Borrower Performance
9.1 The Borrower's performance in carrying out its obligations under the project has been good. While DGWRD was the executing agency, project implementation was decentralized and most of the responsibilities were delegated to the PRIS in Central and West Java for the provincial irrigation development part of the project and to the Jratunseluna River Basin Project office in Semarang for the Dumpil project. The performance of the provincial irrigation organizations in Central and West Java has been particularly good.
9.2 The organizational structure of both Provincial Irrigation Services remained stable throughout project implementation and staffing levels were maintained or exceeded - 17 - at the levels foreseen at appraisal. Composite teams of local and foreign Consultants provided considerable assistance to provincial staff in such areas as project management, planning, coordination and training. While the project's main focus was on investment activities in existing small and medium-type irrigation schemes, appropriate attention was also given to introducing efficient O&M and to monitoring project benefits. The AOU and PME programs, which were integrated in the day-to-day activities of the PRIS provided important contributions in those areas and appear to be firmly implanted in the Provincial activities. The Borrower's decision in 1986 to introduce efficient O&M nationwide was important for the O&M activities envisaged under this project. It resulted in additional technical and financial support for O&M related activities in parallel with the irrigation improvement programs under the project.
9.3 The J ratunseluna project staff had to manage a large number of unforeseen problems caused by the inaccurate and incomplete preparation of detailed designs for the Dumpil system. This additional work required the re-allocation of staff and consultants resources and resulted in many amendments to the contracts for the construction of works. Project staff at times showed a lack of sound judgment and experience in proposing additional works under contract amendments. Costly canal lining was often proposed without considering cheaper alternative solutions, such as dry stone pitching, flumes or partial lining. Additional consultant input was acquired to help finding the best solutions for the canal stability and other problems.
9.4 Compliance with covenants has generally been satisfactory. Stipulations on O&M funding under clause 5.04 of the Loan Agreement were superseded by the introduction under the ISSP-I project (Ln 2880-IND) of an irrigation service fee (ISF) and the earmarking of land tax collection under PBB (successor of IPEDA) for O&M. Those O&M related activities were prominent parts of the Irrigation Subsector Policy Statement and related monitorable Action Plan under ISSP-I and ISSP-II.
9.5 The budgetary process at the national level continued to be cumbersome, which often resulted in late availability of funds. This in turn delayed the bidding process for the construction of works, causing works often to be implemented under unfavorable weather conditions of the wet season. The Borrower did not perform well with providing adequate transportation to project staff. Although the Bank amended the Loan agreement in 1988 to permit Loan financing for the purchase of vehicles, it was only in 1991 that the Borrower had fully complied with this provision. The Borrower was generally slow in processing loan withdrawal applications. At times the Borrower made special arrangements to clear significant disbursement backlogs.
9.6 Progress reporting, mainly prepared by consultants, was regular, timely and the quality good. Adequate project accounts were maintained by the Borrower. Annual audits were carried out as scheduled and generally submitted within one year after each fiscal year. The audit reports provided to the Bank were satisfactory.
10. Project Relationship - 18 -
10.1 Good relationships were maintained between the Bank and Borrower, especially with DGWRD, BAPPENAS and PBB at the Central Government level and with the project implementation entities in both provinces. The Bank's contacts were primarily maintained through its staff at RSI. This was of particular significance in resolving the Dumpil design problems and in accelerating procurement and disbursement processes. There were frequent informal and formal contacts between Bank and project staff either at RSI, in OGWRD or during visits to project sites.
11. Consulting Services
Part I: Central and West Java Provincial Irrigation Development
11.1 Consultants to the Provincial component consisted of a joint venture of two foreign firms in association with four Indonesian firms. The Training and Coordination Consultancy (TCC) provided on-the-job training, project planning and coordination, construction supervision and studies. The services started in October 1986 and the plan was that the expatriate consultants would terminate at the time of the mid-term review (MTR) scheduled for September 1989. Thereafter the Indonesian consultants would provide the required services. However, during the MTR in July 1989, the Borrower requested to revise the scope and extent of the Consultant services, because of constraints not anticipated at the start of the assignment such as unavailability of designs in the early project years; lack of experience of local design consultants and the limited impact of training and transfer of know how until that time. It was decided to continue the services of the foreign consultants until the anticipated end of the project in December 1992.
11.2 Apart from providing general project planning and coordination services, the consultants prepared contract documents for ICB and LCB and standard forms for reporting during construction. They implemented a comprehensive construction supervision training program for Provincial and district staff. All staff training was completed by February 1992. Consultants prepared also standard design criteria and guidelines for all categories of design work under the project. The design criteria report prepared under the project has become a supplement to the OGWRO design standards. Most designs were carried out by third party local consultants, who were supervised by PRIS staff and Tee consultants. The TCe consultants prepared also feasibility studies for the Randununting and Cibuni-Cikaso projects.
11.3 Throughout the assignment, which had considerable impact, the TCC consultants performed satisfactorily. The cost of consultant services increased by about 40 percent from $9.9 to $14.0 million. This large cost increase is largely due to retaining foreign consultants for another twenty four months beyond the original termination date of September 1989.
11.4 A special consultancy, not foreseen at the time appraisal, was required to inspect and investigate a total of twelve existing dams in Central and West Java to determine the need for rehabilitation. Consultants were appointed and started the assignment late 1989. The cost of this consultancy ($1.5 million) was financed under Part A.5 of the project: surveys and detailed designs. This work was completed satisfactorily - 19 -
end 1992. The rehabilitation works identified are expected to be implemented under the recently approved Dam Safety Project (Ln. 3742-IND).
Part II: Dumpil Irrigation
11.5 The Borrower appointed in 1986 consultants to supervise the construction of the Dumpil barrage and earlier irrigation and drainage works. The foreign/local joint venture was appointed directly, because of its involvement in the preparation and design stage of the project. Consultants started the assignment late, because of protracted contract negotiations. In early 1990 it became evident that additional consultants input was required to deal with the design revisions and problems encountered during construction of works. The Borrower proposed local consultants only, but the Bank insisted that additional foreign input would be contracted to advise on the difficult technical problems related to unstable soils and construction quality. A foreign consultant was contracted. His input was significant and resulted in improved construction quality. His assignment ended mid-1992. From that date until August 1992 construction supervision was the responsibility of local consultants and project staff. Thereafter project staff was solely responsible for construction supervision, except for some foreign input for the supervision of automation of the Dumpil barrage gates. The quality of the consultants services has been unsatisfactory. The assignment was of a complex nature, because of the need for significant design revisions and the discovery of unstable clays in the canal alignments. In hindsight the decision made in 1988 to assign design review and construction quality control responsibilities to the consultants rather than project staff proved correct. The cost of consulting services increased by 31 percent from $2.2 to $2.9 mimon. The increase was caused by additional inputs required for design revisions and construction quality control.
Part III: Studies and IPEDA Surveys and Mapping
11. 6 Studies. Consultants contracted to undertake the various studies programmed in the SAR performed satisfactorily. The Bongo feasibility studies and preparation of detailed design, were completed as scheduled at a 60 percent lower cost than projected in the SAR. The Dolok-Panggaron and Tuntang-Jragung studies in the Jratunseluna basin, which were financed by the EEC, started much later than planned because of cumbersome selection procedures imposed by the EEC. Contracts were awarded to Consultants from the Netherlands. The EEC sponsored studies costed $5.2 million or about 35 percent more than projected.
11.7 JIWMP Preparation. Ajoint venture of foreign and local consultants were contracted to assist DGWRD with the preparation of the proposed Java Irrigation Improvement and Water Resources Management Project. The preparation document, which was of good quality, was submitted as scheduled by April 1993. The cost of the consultancy was $2.0 million.
11.8 IPEDA Surveys and Mapping. Two local consulting firms were selected to supervise the six IPEDA mapping and reclassification contracts under the project. These contracts were awarded in April 1988. All activities were completed satisfactorily - 20 - by mid-1990. The cost of the supervisory consultancies was $0.8 million or 30 percent less than foreseen.
12. Project Documentation and Data
12.1 Documentation. The Loan Agreement and the SAR provided a generally a adequate framework for the Bank and the Borrower during project implementation. The stipulations in the legal documents and the SAR were well understood at the working level by the implementing project agencies, which avoided problems during implementation. The Borrower generally complied with the provisions of the Loan Agreement (Table 8).
12.2 Project Data. Detailed data were readily available for the preparation of this PCR. The Borrower had prepared PCRs for the main project components, which provided most of the inputs for this report. List of reports arid other documents developed during the implementation of the project have been properly maintained by the project offices. These include study reports, design criteria and guidelines, drawings, tender documents, O&M procedures, progress reports and training materials. In addition, data, maps and aerial photographs obtained by the project are professionally stored in the project offices. Provincial computerized data bases and reservoir data have been maintained separately by the Central and West Java PRIS. In addition, a continuous photographic record of project activities has been maintained. Two videos each for construction and O&M and one film for Water Users Associations were also produced during the course of the project. - 21 -
PART II: PROJECT REVIEW FROM BORROWER'S PERSPECTIVE
A. Comment on Part I
1. Background
Self sufficiency in rice production achieved since 1984 should be maintained. However some supporting actions should be carried out, among others:
1.1 Improving human resources for O&M of the existing irrigation schemes and increasing the number of O&M staff by Training for design, water management etc.
1.2 Turning over the irrigation schemes from Project to Provincial Irrigation Service to realize the Desentralization including the O&M irrigation.
1.3 Increase the O&M budget.
a. Introduction of Irrigation Service Fee (ISF) b. IPEDA Survey and Mapping for supporting land tax collection. c. Improving the Water User Association capabilities for maintaining the tertiary canals.
1.4 Developing a new irrigated area due to:
a. Increased food demand caused by population growth rate (2 % annually). b. Continued land conversion from irrigated rice field into other purposes. In Java about 30,000 ha technical irrigation rice field changes in function yearly. Compared with Dumpil Project which will develop 11,300 ha irrigated rice field within 5 years, the development of new irrigated area is too slow.
1.5 It is ideal if the O&M budget of the existing Irngation schemes is covered by the incremental agriculture yield (project benefit) O&M irrigation cost recovery is underway in some area through ISF collection. A part of O&M budget will have to be paid by ISF, land tax and WUA's fee.
The existing Imgation schemes in Central and West Java are deteriorating due to lack of O&M budget and O&M staff. The improvement of O&M will require more budget, skill and facilities. - 22 -
Beside the existing new irrigated area it was planned to develop Dumpil Irrigation area and tertiary system in Central and West Java Irrigation Project.
The Government of Indonesia then requested World Bank Assistance using loan 2649-IND to finance the O&M of Central and West Java Irrigation and the development of Dumpil project.
2. Project Preparation
2.1 Rehabilitation, upgrading, EOM and its supporting work of Central and West Java Irrigation project was well prepared. The problem is that more than 500 schemes of Central and West Java Irrigation are located mostly in remote areas.
2.2 Dumpil preparation.
1983 - 1984 Dumpil Irrigation System was designed with limited budget. And it was sufficient only for soil investigation in the barrage rather than for the canal system. The topographic survey and geological investigation were done very limited.
Design review resulted in additional works, topographic survey and geological investigation. The 11,300 ha irrigated land of Dumpil area has nine (9) small existing irrigation schemes managed by DPU, but there was not enough water provided consistently.
Therefore, these existing irrigation systems were integrated into Dumpil Irrigation system. From the Feasibility Study Dumpil Irrigation Project is feasible with a marginal ERR of 12 %.
3. Project Implementation.
3.1 The achievement.
The components of studies, civil works and training of Central and West Java Irrigation are well implemented and achievements exceeded the SAR targets. The completion of Dumpil Irrigation Project is delayed due to some problems raised during project implementation period such as the need for redesign during construction, lack of funds etc. - 23 -
3.2 Construction Quality.
In the PCR it is mentioned that the Construction quality, which received inadequate attention in the initial project years, gradually improvement over the years.
The overall construction achievements of Central and West Java Irrigated exceeded the SAR targets. However, physical achievements are not worth much if the construction quality is not satisfactory and the irrigation schemes are not functioning properly.
For PCR, the evaluation of construction quality of civil works and the evaluation of irrigation function by visual field checks is essential. Secondary data of supervision report are usually different compared with the actual field conditions.
The irrigation schemes of Central and West Java Irrigation, consists of more than 500 schemes and are located mostly in remote areas. This makes it difficult to evaluate the construction qUality. Construction quality of one scheme is not necessarily representative for other schemes.
The implementation of Dumpil Irrigation Project has been carried out with some problems: lack of funds, need for redesign and additional works.
4. Project result.
4.1 The physical achievement of design and construction of small and medium rehabilitation and upgrading components under the Central and West Java Irrigation Project Ooan 2659-IND) is satisfactory and has exceeded the targets of the SAR.
Design and construction activities for rehabilitation and upgrading of irrigation systems, mostly require simple technology. Therefore, the physical achievement has exceeded the SAR.
4.2 In contrast, physical achievement of Dumpil Irrigation Project is lower than projected in the SAR, 6,700 ha against 11,300 ha in the SAR. Construction quality of Dumpil Barrage is satisfactory, but a part of canals is less than satisfactory and inoperable. Technical reasons, which were unforeseen during appraisal and lack of funds resulted in delays in completion. - 24 -
4.3 The training component carried out through lectures, seminars, transfer of knowledge, workshop, field visits and education visits has been implemented satisfactorily. Hopefully the training will benefit future O&M of irrigation schemes. However, up to now there is no criteria for measuring the benefit of training. Quite often some training participants are not representing their daily job.
4.4 The success of WUA training is also questioned; up to now only about 20 % of the WU As are active.
4.5 Tum over irrigation schemes to Provincial Irrigation Service is in line with the Decentralisation Policy. This has been done successfully. But mostly no improvement has been made in the O&M of irrigation schemes because:
(1) the readiness of the Provincial Irrigation Service (2) lack of O&M funding.
4.6 IPEDA survey and Mapping is addressing to sustain land tax collection (PBB) and a part of land tax will be used for O&M irrigation system.
4.7 Conclusion:
Project loan 2649-IND for Central and West Java Irrigation is sustaining O&M irrigation schemes, and has extended the Project's life time. However, the main O&M problem hasn't been solved. Since the O&M budget is not sufficient, the life time of irrigation schemes will be shorter than planned.
4.8 O&M.
The PCR does not show the O&M comparative analysis which shows Central and West Java Irrigation at present condition, future condition and the ideal condition.
The analysis of O&M budget and staff number is essential for the PCR. The future O&M irrigation schemes depends on the budget and skill of O&M staff.
4.9 ERR.
a. Project Monitoring Evaluation (PME) results were used in the analysis of the ERR without any cross check in the field. - 25 -
If the total PME area (15 %) only represents the best group of Central and West Java Irrigation, the PME result may not be used to analyse the ERR. Paddy yield in the wet season (less than 3 ton/ha) is generally lower than SAR (about 4 ton/ha) except for upgraded projects (no complete data).
Cropping intensity for paddy (about 230%) is generally above SAR projections (180%). It should be noted that the farmers of Central and West Java are used to plant palawija because its price is better than paddy. At full development, by increasing the crop intensity of paddy, the crop intensity of palawija will be lower and so is the net benefit.
b. Upgrading of irrigation schemes resulted in the highest returns ranging from 45 % to 79 % but the second slice upgrading will reduce ERR to 35 %.
c. Rehabilitation of irrigation schemes generally have small incremental benefit, because the purpose of rehabilitation is lengthening the project's life time. So the ERR of 30% should be analysed in more detail.
d. ERR of Dumpil Irrigation Project is only 6 % compared with 13 % estimated at SAR. The low ERR is caused by the physical achievement which is only 6,700 ha against 11,300 ha projected in the SAR.
5. Project sustainability.
5.1 Small and medium irrigation.
The development of small and medium irrigation schemes are done by farmers with mutual help, simple technology and low cost investment. Usually, weirs and the other structures are damaged yearly and rebuilt by farmers.
Permanent irrigation structures done by project will sustain the farmers to concentrate on agriculture activities. The farmers will be responsible for the O&M of the irrigation schemes.
5.2 Upgrading and rehabilitation. - 26 -
Cost recovery for irrigation O&M from ISF and land tax is on going in pilot projects but the present irrigation condition needs urgent rehabilitation. Upgrading and rehabilitation project sustains the project life time. The future O&M cost will be covered by the Government and continued under Java Irrigation Improvement Project.
5.3 Training.
Training for design, O&M etc. will be useful for the project staff and farmers to maintain the sustainability of the irrigation schemes.
6. Bank Performance.
World Bank assistance for improving the O&M of the existing irrigation schemes in Central and West Java Irrigation schemes, soon after achieving self sufficiency in rice production is a step in the right direction. The condition of existing irrigation schemes has been deteriorating due to lack of O&M funds and lack of capable O&M staff.
However, it should be considered that the World Bank assistance to O&M of small and medium schemes might be softening the farmers spirit to maintain the irrigation schemes. The field check revealed that in some small schemes before the project, farmers managed the O&M but after the project, the farmers have no will any more to manage the O&M. O&M belongs to the project.
Therefore the World Bank assistance should be concentrated to the bigger scale irrigation and high technology such as Dumpil Irrigation Project. During the preparation, Dumpil Irrigation Project should have been allocated more funds for soil survey and geological investigation. But due to lack of such fund, the completion of Dumpil irrigation is delayed.
7. Borrower Performance.
The Government of Indonesia (GOI) has responsibility for the O&M of irrigation from weirs up to secondary canals, while farmers have responsibility for the O&M of tertiary canals.
The effort to pay more attention for the O&M of irrigation schemes is a step in the right direction. Before 1984, the emphasis was on the development of new construction. Any problem during project preparation and project implementation has been overcome through satisfactory coordination among agencies concerned. - 27 -
8. Relationship between Bank and GOI.
Generally the relationship between Bank and GOI was good. Difference of opinion and even conflict is a part of the work. Difference of opinion will eventually serve as a unifying force to arrive at consensus which is in the interest of both parties.
B. Comment on Part m
1. The project Completion Report of loan 2649-IND should be completed with:
1.1 Basic data sheet
1.2 Project location Maps of Central Java Irrigation Project, Dumpil Irrigation Project and West Java Irrigation Project.
2. Table 7 should be supported by:
2.1 Table of area achievements each year and agriculture production before and after project of:
a. Central and West Java at medium, small, rehabilitation and upgrading irrigation.
b. Dumpil Irrigation Project
2.2 Table of O&M budget each year of Central Java Irrigation West Java Irrigation and Dumpil Irrigation.
2.3 Table of agriculture input
2.4 Table of ERR calculation of each irrigation including sensitivity analysis.
2.5 Table of prices including of farm gate price.
3. Table 2 will be more understandable by using diagram. - 28 -
PART III: STATISTICAL INFORMATION
Table 1: RELATED BANK LOANS Year of Lou No. Tide Purpose la Al.!l.!roval Status Comments
1578-IND Irrigation X T A for Institutional 1978 Completed Strengthening and cost recovery study 1645-IND Irrigation XII Institutional training 1978 Completed study for DGWRD 0995-IND Irrigation XV Institutional 1980 Completed Mentioned in SAR with strengthening for respect to strengthening of DGWRD planning, programming, and budgeting 996-IND Agricultural Strengthen O&M of 1980 Completed Before negotiations, it was Extension Agricultural Services agreed that the agricultural componenta would be covered under Ln. 996- IND. 2l18-IND Irrigation XVI T A for institutional 1982 Completed Training of water ulCr strengthening of associations and key DGWRD and design of fannen. MIS for irri28tion sector. 2119-IND Irrigation XVII Fint Provincial Irrigation 1982 Completed Mentioned in SAR a. project in East Java supporting MIS Iystem and improvementa in M&E and improved O&M. 2341-IND Agricultural Improved planning for 1984 Completed General IUpport of Training agricultural manpower Provincial Agricultural development and services. utilization. 2375-IND 2nd Provincial Institutional 1984 Completed Substantial support for staff Irrigation Itrengtheni~ and training and provision of implementation of lmall facilitiel of Provincial IChemes. Irrigation Servicel off-Java.
2748-IND Agricultural Strengthening extension 1987 On-going Continuation of ~riculturll Extension ill services Extension II (Ln. 96-IND). 2880-IND Irrigation Efficient O&M; 1987 Completed Substantial 1UfK.0rt of T A Sub sector I completion of for Studie., e Icient O&M lmall/medium IChemel, and completion of technical IIsistancel provincial schemel (apecial training O&M). 3302-IND Provincial Full development of on- 1991 On-going Improvement of Irrigated going irrigation IChemel Coordination between Agriculture off-lava. Irrigation and Agriculture. Development 3392-IND Irrigation O&M improvement and 1991 On-going Financing O&M of Sub sector II e~andi!!l ISF. irriiation eroiecta.
!1. Only purpose I related to Central and Welt lava Provincial Irrigation Development Project are listed. - 29 -
Table 2: PROJECI'TIMETABLE
Date Date Item Planned Actual
Identification NA 10/84 Preparation/Preappraisal NA 04122/85 Appraisal Mission 06/19/85 04/22/85 Loan Negotiations 11118/85 10/28/85 Board Approval 01114/86 01/23/86 Loan Signature 03/01186 03/07/86 Loan Effectiveness 08/05/86 09/04/86 Loan Completion 06/30/92 06/30/93 Loan Closing 12/31/92 06/30/93
Comments:
Project identification resulted from the performance under the East Java Irrigation project (Ln. 2119-IND) and from Repelita V objectives to (i) strengthen provincial irrigation services and (ii) expand medium and small scale irrigation. In the initial project preparation stage it was agreed with the Borrower that the project would cover Central Java only. A project for upgrading medium and small irrigation systems and improving the operation and maintenance capacity of the Central Java Provincial Irrigation Service was prepared by DGWRD/DOI-I. During the preparation mission in October 1984, BAPPENAS convinced DGWRD that a similar program with the same objectives should be included for West Java. Accordingly the West Java preparation report was prepared by March 1985. The third major component of the project was the 10,000 ha Mid-Lusi subproject in Central Java (Dumpil Irrigation), for which a feasibility study and detailed designs were prepared by DGWRD/DOI-II by January 1985. Based on the provision of supplementary information requested during preappraisal, it was decided to consider the April/May 85 preappraisal mission an appraisal. No major problems were encountered during Loan processing.
Table 3: LoAN DISBURSEMENT
FY 1987 1988 1989 1990 1991 1992 1993
Appraisal estimate (1985) 8.0 30.0 60.0 95.0 129.0 155.0 166.0
Actual (1993) 4.2 26.0 44.0 81.2 108.6 152.3 164.4~
Actual as % of estimate 52% 87% 73% 85% 84% 98% 99%
~ Date of final disbursement November 18, 1993: the undisbursed balance of $1.6 million was cancelled on that date. - 30 -
Table 4: PHYSICAL ACIDEVEMENTS
Design (ha) Construction (ha) Scheme % orSAR Province: Central Java Main System. Medium Scale 12,000 8,208 68 15,000 14,955 100 Small Scale 14,000 31,813 227 20,000 26,895 134 Rehabilitation 20,000 63,228 316 25,000 46,418 185 Upgrading 30,000 23,562 79 30,000 32,244 107 Total: 76,000 126,811 166 90,000 120,512 134 Tertiary Systems Nil 38,816 0 Nil 25,078 Province: West Java Main Systems Medium Scale 5,000 28,387 568 8,600 9,362 112 Small Scale 11,000 14,492 132 30,700 24,144 79 Rehabilitation 25,000 59,142 236 35,000 35,774 102 Upgrading 20,000 16,893 85 25,000 29,668 118 Total: 61,000 118,914 193 99,300 98,948 99 Tertiary Systems Nil 43,995 0 Nil 19,416 Dumpil Irrigation Main and Secondary n.a. 11,300 11,300 100 System Drainage and Tertiary n.a. 11,300 6,700 60 System -- ~ Project Activity Contract No. Scope of Work Contract Value cr SAR PCR r;' ($M) ~ 1. Irrigation Development in HK.02.03.01.DA/922 Training, coordination construction supervision, 9.9 14.0 ~ Central and West Java studies and preparation of future projects (1986- 1993 ~('") 2. Site Investigations of J.02.07.CAl05 Survey, planning and design of remedial works - 1.5 ~ existing dams of existing dams in Central and West Java ~ (1989-1992) (Il ~ 3. Oompil Irrigation Project Ol.KNT .SUP .PIPWSPU Construction supervision of Oompil Irrigation 2.2 2.9 in Central Java 187/88 Project (12 000 hal (1986-1992) ~ttl 4. Bongo Irrigation Project Ol.KONTRAK.PIT/BVIII Feasibility study and preparation of detailed 2.7 1.1 in North Sulawesi design for Bongo Irrigation project (12,000 hal {1987 -1989) Vol 5. Jratunseluna Basin studies HK.02.03.01.B/I09/CES/83 Detailed design for drainage works (6,500 ha); 3.8 4.2/a .... master plan and feasibility study to develop water resources of Tuntang and Jragung rivers (40,000 hal (1990-1991) 6. Land tax (lPEDA) Supervision of IPEDA mapping and 1.2 0.8 reclassification contracts i 1988-1990) 7. Java Irrigation HK.02.03.01.AJJ Preparation of the JIWMP (1992-1993) - 2.0 Improvement and Water CANTEC.06 Resources Management Project (JIWMP) Total $M) 19.8 27.5 Percent of Project Costs 6.5% 11.1% la Fmanced by EEC Grant. - 32 - Table 6A: PROJECf COSTS R billion USS million Item SAR Actual SAR Actual Estimate Cost Estimate/a Cost Ib Provincial Irrigation Development Land Acquisition 13.05 10.57 11.86 5.71 Mapping and Site Investigation 0.86 3.21 0.79 1.68 Detailed Design 5.78 14.53 5.25 7.62 Civil Works 150.51 261.06 136.83 139.15 Subtotal 170.20 289.37 154.73 154.16 Institutional Development Training and Coord. Consultancy 8.22 25.51 7.48 14.02 Training 0.66 2.89 0.60 1.59 M&E and Water User Assoc. 0.50 0.46 Offices & Juru Housing 3.77 4.33 3.42 2.45 Vehicles & Equipment 1.96 2.66 1.78 1.47 Subtotal 15.11 35.39 13.74 19.53 lPEDA (PBB) Land Tax Mapping and Reclassification 5.89 7.34 5.35 3.97 Equipment 0.48 0.43 0.43 0.23 Technical Aasistance 0.92 1.48 0.84 0.80 Subtotal 7.29 9.25 6.62 5.00 Dumpil Subproject Land Acquisition 4.98 11.66 4.53 7.41 Design (Drainage and Tertiariea) 0.42 0.29 0.38 0.17 Diversion Barrage !£ 14.22 16.11 12.93 9.16 Main and Secondary Canals 16.07 45.75 14.61 24.97 Drainage and Tertiariea 3.48 13.62 3.16 6.55 Officea and Buildinga 0.22 0.09 0.20 0.06 Lining Canals M 0.00 9.72 0.00 4.77/e Inspection Rounds M 0.00 6.10 0.00 2.99~ Subtotal 39.39 103.34 35.81 56.08 Consulting Service. Dumpil Construction Superviaion 1.83 5.42 1.67 2.93 Bongo Feasibility Study 2.23 2.04 2.03 1.10 and Detailed Design Dolok-Penggaron and Tuntang-Iraaung!£ 3.51 10.13 3.20 5.18 lava Irrigation and Water 0.00 4.08 0.00 2.00 Management Study Subtotal 7.57 21.67 6.90 11.21 Administrative Cost 11.02 4.76!1 10.01 2.59L& Total Base Cost 250.58 463.78 227.81 248.57 Contingencie. Physical 23.70 0.00 21.55 0.00 Price 58.22 0.00 52.94 0.00 Total 332.50 463.78 ~ ~ ~ Increase or (decrease) 39~ (l8~) la At US$l.ooequailRp 1,100. 7b At actual exchange rate varying from Rp 1,640 in September 1986 to Rp 2,050 in June 1993. Tc Financed by EEC grant. ~ Lining of canals not included in the original design and SAR estimate. Only lOme inspection roads were included in SAR estimate. Ie Estimated, not yet completed. 71 Includes Rp 1.2 billion ($0.6 million) for Dumpil project. - 33 - Table 6B: PROJECI' FINANCING (US $ '000) Loan Agreement Actual (A) IBRD Category (1) Civil Works: (a) Part A 113,600 105,498 (b) Part B 4,000 2,202 (c) Part D.2 and D.3 15,200 21,264 (2) Equipment and Materials: (a) Part B.2 150 86 (b) Part C.3 250 227 (c) Vehicles ~ 1,218 (3) Consultants' Services and Training: (a) Part A.5 6,200 9,024 (b) Part B.1, B.3, E.6 and E.7 10,000 15,039 (c) Part C.3 900 845 (d) Part D, E.4 and E.5 4,500 4,039 (e) Part E.8 ~ 1,887 (4) Mapping (part C.1) 3,600 3,035 (5) Unallocated 7,600 166,000 164,364 Cancelled on 11/18/93 1,636 Total 166,000 166,000 (B) EEC (1) Civil Works 14,700 9,160 (2) Studies 3,300 5,180 Total 18,000 14,340 (C) GOI 118,300 69,866 Total Project Cost 302,300 248,570 ~ Not included at appraisal. - 34 - Table 7: PROJECT BENEFlTS Economic Impact at Full Development Appraisal peR Economic Rate of Return Estimate Estimate ------(~) ------ Part I: Provincial Irrigation Central Java Medium Scale 20 14 Small Scale 30 46 Rehabilitation 27 30 Upgrading n.a. 79 Overall Central Java 2S 41 West Java Medium Scale 20 16 Small Scale 33 29 Rehabilitation 28 29 Upgrading n.a. 45 Overall West Java 28 28 Part II: Dumpil Irrigation Dumpil Irrigation Development project 13 6 .., c= c:r No. Name of Study Purpose 85 Defined at Appraisal Status Impact of Study ;- QC 1 Bongo Feasibility Study (North To determine technical and economical Completed mid-1989 Project turned out to be feasible, but Sulawesi) and Detailed Design feasibility. implementation did not proceed because rI) Provincial Government objected to some of >-3 the proposed project details § 2 Dolok-Panggaran Study. /a Detailed design for 6,500 ha Completed mid-1991. Fundin~ required for implementation. ~- 3 Tuntang-Jrageng Studies Preparation of Master plan, feasibility Completed mid-l99l. Funding required for implementation. study and detailed design of Glapan ~ ~ barrage. Z en >-3 4 Dam rehabilitation Studies & To review safety and stability of Completed December 1992. Major contribution to preparation of Dam existing Dams. Safety Project --3 ~ 5 Java Irrigation hnprovement and To prepare a follow-up irrigation Completed April 1993. Studies provided key input for the formulation S Water Management Study & rehabilitation project for Java and ofJlWMP. z formulate a River Basin management component. ~ rI) c:: 6 Monitoring and Evaluation Studies. Monitor and Evaluate agricultural Established and continued. Reports prepared, results use for PCR. Staff ~ development and physical changes trained n M&E. M&E units continue to ~ W 0 VI under the project. function a fier Loan closure. lI:l >-3 7 Advanced Operations Unit (AOU) Tryout and refine O&M procedures Implemented, expanded and O&M procedures have been modified and l'rogram. continued a fier Loan closure. improved. System has been upgraded. 8 Strengthening of Central and West Formal on the job training in planning, Completed December 1992 Training and institutional strengthening was Java Provincial Irrigation Services. design, implementation, construction effective and has had an important impact on quality and O&M. the successful completion of the Provincial Component. Training and Institutional strengthening under Dumpil was less successful. l.! Financed by EEC. & Not foreseen at Appraisal. ------...j ~ Loan Agretment Deadline for 0- Covenant Subject Compliance Status /a ~ Ie 3.01(a) Carry out project with proviso that detailed design of some N.A 2 parts will be carried out only if feasibility studies under the Vl project 80 recommend. -3 > -3 3.01(b) Carry out project according to Schedule 5, 88 amended from N.A. 2 C time to time. fJJ o 3.02 Carry out procurement in accordance with Schedule 4. N.A. 2 ""l n 3.03 Submit a plan of Action of allocation of IPEDA. By December 31, 1988 5 o Superseded by implementation of ISF program and <: arrangements for land tax collection under PBB tTl included in the National Policy and Action Plan being Z financed under ISSP-II (Ln. 3392-lND). Vl~ 4.01 (a) Maintain accounts for ~roiect eXflCnditures. N.A. 2 4.01(b) Furnish audit re~!lrt within nine months after each fiscal year. January_l each year. 2/a 4.01(c) Accounts to be maintained and retained for all expenditures N.A. 2 on basis of statement of expenditures. W 5.01 Assign qualified staff to irrigation districts of Kedu, Surakarta September 30, 1986. 2 0'1 and Pati in Central Java. 5.02 Operate and maintain diversion structures and irrigation N.A. 3 networks, and provide adequate funds for maintenance. 5.OJ Tak.e appropriate measures to control malaria in irrigation N.A. 2 service areas. 5.04 Provide a plan of action for allocation of a portion of lPEDA December 31, 1989 5 for O&M of irrigation works. Covenant superseded by implementation of ISF program and arrangements for land tax collection under PBB, included under DAP financed under ISSP-II (Ln. 3392- lND). This is consistent with original objectives, PBB in 92/93 contributed over 15 % of national O&M budj!et. 5.05 Carry out D.G. Taxation's plan of action for land April I, 1990 5 reclassification of the remaining irrigation areas of Central Same as above. and West Java. 5.06 Furnish a plan for the improvement of the method of September 30, 1987 5 collection of lPEDA, and carry out such plan after Same as above. incorporating the Bank's comments. /a 1 = unavailable 5 = to be waived/deleted - 2 = in compliance 6 = no longer relevant 3 = partially in compliance 7 = to be amended 4 = not in compliance 8 = not yet due. ------;-~ Loan Agreement Deadline (or \C Covenant Subject Compliance Status S 7.01 Contract for consultants under Part B .1. Loan Effectiveness. 2 ::s -0: Schedule I, No withdrawal shall be made for expenditure under Category N.A 2 Para. 3B I(c): (i) until EEe grant is effective; (ii) contract for diversion weir awarded; and (iii) consultant's contract for Part D(I) and D(2) signed. Schedule 5, Establish M&E in Central and West Java and assign qualified December31,1986 2 Para. I(a) staff. Schedule 5, Carry out plan of action. September 30, 1987 2 Para. I(c) Schedule 5, Carry out civil works in accordance wit a timetable acceptable N.A. 2 Para. 2 to the Bank. Schedule 5, Establish a committee to coordinate IPEDA mapping N.A. 2 Para. 3 activities. Schedule 5, Completed iPEDA reclassification component (part C.2) September 30, 1990 2 w Pars. 4 -...l Schedule 5, Acquire first lot of vehicles. September 30, 1986 2 (delayed) Para. 5 Acquire second lot of vehicles. September 30, 1987 2 (delayed) - 38 - Table 10: USE OF BANK REsOURCES A. STAFF INPUTS (staffweeks) Stage of Project Cycle Planned Revised Final Comments Through Appraisal } 40.4 } Appraisal through } Board Approval } 59.6 5.7 } Board Approval } through Effectiveness } 2.0 Supervision 84.0 87.0 Total 143.6 135.1 B. BANK MISSIONS f.j Stage of No. of Days in Specialization Performance Type of Major Project Cycle MonthlYear Persons Field Ib Represented Ic Rating Status Id Problem Ie I. Project Appraisal: 4/85 7 24 IE;A;E II. Appraisal to Board 7/83 3 20 IE;E;S Ill.Board Appraisal to Condition of Effectiveness NIRlJ Effectiveness (Signing of Consultants' contact for Training and Coordination delayed effectiveness) IV. Supervision 1187 2 7 IE;A 112 F 8/87 2 7 IE;A 112 None 7/88 2 16 IE;A III None 2/89 2 11 lE;A III M,T 8/89£g 4 16 IE;TE;A III F,O 6/90 2 17 IE;A 111 None 5/91 2 8 IE;A 111 T, (Dumpil) 5/92 2 16 21E 2/2 F,T, (Dumpil) 11/92 3 11 2IE,A 2/2 T,F, (Dumpil) 6/93 1 IE 112 T,F, (Dumpil) V. PCR 2/94 14 IE ~ Until FY93, project supervised from the RSI field office on a continuous basis. &. Number of days from start to fmish of mission in field. !£. Key to Specialization: IE = Irrigation Engineer; A = Agriculturalist; E = Economist; TE = Training Expert; S = Surveyor. !s1 Key to Status: Development Impact/Overall Status. /£; Key to Problems: M = Management; T = Technical; F = Financial; 0 = Other (Project coordination and general project problems). If NIR = no records. Li Mid-term Review. ISROl9116 I't1IUPPINES , '06" '0" 'oa" '09" LAMPUNG -~"-'.- ~ ""ALAYSIA ~'- ---- .I'%:.,.... '-,.."..",., JA VA SEA IU.J/IoVIN1AN ~ SULA"'fS/ liliAN jAr-A .".,." I -"'0 D.K.I. INDONESIA ," JAKARTA 6·~ I D - ~,"J TIM()R Jokarta "'-01_ WILAYAH INDRAMAYU AUSTlAllA Wl , > '''''0''''''' _Lr " '''" • 'I, ART" \ , , ">'" \ ' -- /,oo~f~ ~ -- '. ~'" . . _". WU,TlMUR _ • ..... - -- """".... , ...... 6OC', /- ' .. ,:w '0'0""_>- ____ ,1 Rehabilltat,on:,_ __ 5. 400 ha G'UNGUNG MARoAN ","\'. -'~', ,/. '~, \/' I, __ \,: w""""'" .::..::~ "~\\. \ · -'~------:J/ /__ ... , " "", '.'"" INDONESIA ,,_. '''\-~- '. , , . "-. ~\~,. 0) v\ '",__, CENTRAL AND WEST JAVA PROVINCIAL - ',....,/." \ --~,~" r-- . 'j" y,";"-,O--, ... ..J ,,'- " , IRRIGATION DEVElOPMENT PROJECT ~~~ ~ / (.- " ><. '", j "~r Small Scole: 6,750 hit. "00 • ~'--' W1LAYAH BAYU ~ RehabiHtatian,6,58O-,~ . D.,.,..KARTA --I , Medium Scale New Irrigation Schemn r .. CIM.ANDlIlI ...... ~, ".~ • ,-,-~.~, ...'" ...., ','... roo" "\ i (l8001 ~~,~ _o~ ~ (area in ha.) c:z, Mid-Lu,i Subproject Road. Railways RNen Seksi Bou Wilayoh (Di.,,;..) 1Iouoda< ... Pr International Boundaries tr::.::...__ Co-Dooo<_-_-:" ==:. "., ___ r: =.-=:, ...~ ~_ -::::::..""'::'::==: ...... _""'_ ...... , _ .. _", n.-., ..... _ ... __ jI'...... ~ __ ...... 01_...... ,." __"_01 __ '06" .0" '00" .0.- 110" 111"