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Integrated Citarum Water Resources Management Project (Financed by the Technical Assistance Special Fund

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Integrated Citarum Water Resources Management Project (Financed by the Technical Assistance Special Fund Technical Assistance Consultant’s Report Project Number: 37049 January 2007 Indonesia: Integrated Citarum Water Resources Management Project (Financed by the Technical Assistance Special Fund Prepared by Phase 3 Consultant Team Indonesia For Directorate General of Water Resources Ministry of Public Works This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. GOVERNMENT OF REPUBLIC INDONESIA MINISTRY OF PUBLIC WORKS DIRECTORATE GENERAL OF WATER RESOURCES Asian Development Bank TA -4381 (INO) Integrated Citarum Water Resources Management Program Phase 3 Report on Roadmap and Program Development January 2007 Revision 1 Citarum Integrated Water Resource Management Project Report on Roadmap and Program Development Contents Abbreviations Currency Acknowledgements 1 Background................................................................1 1.1 Introduction 1 1.2 Project History 1 2 Personnel and Inputs ................................................4 3 Approach....................................................................6 4 Program Area Description ........................................9 4.1 Extent 9 4.2 Topography and River Network 10 4.3 Water Resources 10 4.4 Administrative Areas 11 4.5 Settlements and Industry 11 4.6 Agriculture and Forestry 13 5 Re-Assessment of Basin Issues ............................15 5.1 Introduction 15 5.2 Poverty 15 5.3 Institutional Arrangements 16 5.4 Surface Water Management 17 5.5 Groundwater Management 17 5.6 Erosion and Sedimentation 18 5.7 Flooding 19 5.8 Water Pollution 21 5.9 Watershed Condition and Biodiversity 24 5.10 West Tarum Canal 26 5.11 Water Quantity and Quality Monitoring 28 5.12 Issues Analysis 29 6 Key Areas for IWRM ................................................31 6.1 Definition of Key Areas 31 6.2 Institutions and Planning for IWRM 32 6.3 Water Resource Development and Management 32 6.4 Water Sharing 32 6.5 Environmental Protection and Enhancement 33 Citarum Integrated Water Resource Management Project Report on Roadmap and Program Development 6.6 Disaster Management 33 6.7 Community Empowerment 33 6.8 Data, Information and Decision Support 34 7 Interventions Identified in Phases 1 & 2 ................35 7.1 Process 35 7.2 Issues Analysis 35 7.3 Sub-Projects Recommended 36 7.4 Adequacy of Original Loan Project Composition 37 8 Development of the Roadmap ................................39 8.1 Introduction 39 8.2 Agreeing a Shared Vision 39 8.3 A Strategic Framework 40 8.4 Key Area Objectives 41 8.5 Proposed Roadmap 43 8.6 Government Endorsement of the Roadmap 43 8.7 Sequencing of Interventions 43 8.8 Funding of Roadmap Interventions 43 9 Designing the Overall Investment Program ..........45 9.1 Basis for Selecting MFF Components 45 9.2 Recommended Investment Program 45 10 MFF Tranche 1 .........................................................47 10.1 Selection Criteria 47 10.2 Recommended Composition of Tranche 1 47 11 Cost Estimates and Financing ...............................50 12 Implementation Arrangements...............................53 12.1 Investment Program Planning, Coordination and Management 53 12.2 Executing and Implementing Agencies 53 13 Impacts and Benefits...............................................55 13.1 Policy Impact and Institutional Benefits 55 13.2 Economic Benefits and Impacts (for Tranche 1 only) 55 13.3 Other Benefits not Considered in Economic Analysis 56 13.4 Environmental Benefits and Impacts 56 14 Modelling and Decision Support Systems ............58 14.1 Introduction 58 14.2 Water Quality Modelling 58 Citarum Integrated Water Resource Management Project Report on Roadmap and Program Development 14.3 Decision Support Tool 63 14.4 DST-for the Citarum River Basin 69 15 Conclusions and Recommendations.....................71 15.1 Conclusions 71 15.2 Recommendations 71 Annex 1: Reports Prepared by the PPTA Phase 3 Team Annex 2: Roadmap for IWRM in the Citarum River Basin Annex 3: Design and Monitoring Framework – Total Investment Program Annex 4: Indicative Implementation Schedule – Total Investment Program Annex 5: Design and Monitoring Framework – Tranche 1 Annex 6: Proposed Implementation Schedule – Tranche 1 Annex 7: Indicative Investment Plan Summary Annex 8: Economic and Financial Analysis Annex 9 Proposed Implementation Arrangements – Tranche 1 Annex 10: Project Profiles – Tranche 1 Annex 11: TOR for Tranche 1 Priority Components Citarum Integrated Water Resource Management Project Report on Roadmap and Program Development Abbreviations ADB Asian Development Bank AMDAL Indonesian system of environmental assessment AP affected person AWP annual work programs BOD biological oxygen demand CC Case Composer CPFPG Compensation Policy Framework and Procedural Guidelines CRB Citarum River Basin CSP Country Strategy and Program DGWR Directorate General of Water Resources of the Ministry of Public Works DST decision support tool EA Executing Agency EARF Environmental Assessment and Review Framework ETC East Tarum Canal GOI Government of Indonesia GRDP non-government organisation IA Implementing Agency ICWRMP Integrated Citarum Water Resources Management Program IWRM integrated water resources management JICA Japan International Cooperation Agency MCV Model Conservation Village MFF Multi-Tranche Financing Facility MOA Multi-Objective Analysis MPW Ministry of Public Works NGO non-government organisation NTC North Tarum Canal NWRSC National Water Resources Steering Committee O&M operation and maintenance PA Protected Area PES payments for environmental services PIM participatory irrigation management PIU Project Implementation Units PJT-II Jasa Tirta Public Corporation II PMCU Program Management and Coordinating Unit ppm parts per million PPTA Project Preparatory Technical Assistance PROKASIH Indonesian clean rivers program PWRS Provincial Water Resources Service ROW right-of-way RPMCU Roadmap Planning Monitoring and Coordination Unit RRP Report and Recommendation of the President SEA strategic environmental assessment TA technical assistance TOR Terms of Reference WA water allocation WLM waste load model WQ water quality WTC West Tarum Canal WWTP wastewater treatment plant Citarum Integrated Water Resource Management Project Report on Roadmap and Program Development Currency Currency Unit – Indonesian rupiah (IDR) IDR1.00 = $0.00011 $1.00 = IDR9,100 Acknowledgements This report, which describes the processes, activities and results of PPTA Phase 3 the, is effectively the mission report of the Phase 3 Team leader. Each of the international team members have prepared their own mission report. However, significant contributions to this report were made by team members: Ramon Abracosa, Roger Jackson, Jeremy Bird, Rieks Toxopeus, Teunis op ten Noort, Tan Bock Thiam, Darrell Kitchener and Romeo Cleto. In addition, excellent support to the Team Leader was given by the Indonesian consultant staff, especially Tony Bambang Trihartanto and Sri Hernowo, and the project office staff. Finally, the enthusiasm, guidance and tireless efforts of the ADB Mission Leader, Chris Morris helped the Team Leader and the rest of the Phase 3 team continue on to the end, when at times the task seemed impossible. Citarum Integrated Water Resource Management Project Page 1 Report on Roadmap and Program Development 1 Background 1.1 Introduction The water resources of the rivers and groundwater systems in the Citarum River Basin are critical to social and economic development of the country. They are essential for urban and industrial development (particularly in Jakarta and Bandung areas) including export industry, agricultural production through major irrigation systems, rural water supplies, electricity generation though hydropower, and fisheries. While the water resources of the Citarum River Basin are relatively abundant, competition for these resources has increased significantly over the past 20 years leading to a situation of acute water stress and depletion of aquifers in some places. Rapid urbanization has significantly increased the exposure to flood risk. Environmental degradation has reached a level that compromises public health and livelihoods, particularly for the urban and rural poor, and incurs additional economic and financial costs related to the source of bulk water supply and its treatment. A management focus on integrated water resources management (IWRM) and sustainability of the water resource has been emphasized in the 2004 Water Law. The Water Law introduces the concept of management within the boundaries of a river basin and reflects the principles of decentralization and devolvement of authority to local levels as promoted by the program of regional autonomy. Preparations for its implementation are at a preliminary stage. Water has been a major area of the Asian Development Bank’s (ADB) assistance to Indonesia, totalling over $1.5 billion in loans and technical assistance (TA). Improving sustainable use of water resources in-line with the ADB “Water for All” policy, together with a strong commitment to build capacity of local government agencies, are key elements of ADB’s operational partnership. In particular this partnership stresses the need to continue implementation of policy reforms, overcome weak coordination among agencies and develop guidance for cooperative working. Sustainability of economic
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