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The World Bank 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
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