The World Bank

Document of ., - The World Bank

FOR OFFICIAL USE ONLY Public Disclosure Authorized

Report No. 3648-IND

STAFF APPRAISAL REPORT

INDONESIA Public Disclosure Authorized

SEVENTEENTH IRRIGATION (EAST JAVA PROVINCE) PROJECT

Public Disclosure Authorized March 3, 1982 Public Disclosure Authorized Projects Department East Asia and Pacific Regional Office

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. CURRENCY EQUIVALENTS

US$1.00 = Rupiahs (Rp) 625 Rp 1.00 = US$0.0016 Rp I million = US$1,600

WEIGHTS AND MEASURES - METRIC SYSTEM

1 millimeter (mm) = 0.039 inches 1 meter (m) - 39.37 inches 1 kilometer (km) = 0.62 miles 1 square kilometer (sq km) = 0.386 square miles 1 hectare (ha) = 2.47 acres 1 cubic meter (cu m) = 35.31 cubic feet 1 million cubic meters (MCM) = 811 acre feet 1 liter (1) = 0.264 gallons (USA) 1 liter/second (1/sec) = 0.035 cubic feet per second 1 kilogram (kg) = 2.2 pounds 1 metric ton (ton) = 2,205 pounds

INDONESIAN FISCAL YEAR

April 1 - March 31

ABBREVIATIONS

ADB - Asian Development Bank BULOG - National Food Procurement and Distribution Agency BAKOSURTANAL - National Agency for Coordination of Survey and Mapping DGWRD - Directorate General of Water Resources Development (in MPW) DOI - Directorate of Irrigation (in DGWRD) DPP - Directorate of Planning and Programming (in DGWRD) EJIS - East Java Provincial Irrigation Service GOI - Government of Indonesia IFAD - International Fund for Agricultural Development INPRES - Revenue-sharing grant programs from GOI to provincial, district and village authorities IPEDA - Land Tax IRRI - International Rice Research Institute MPW - Ministry of Public Works O&M - Operation and Maintenance P2AT - Groundwater Development Agency (in DPP) PIBD/PROSIDA - Special agenciesswithin DGWRD responsible for implementing Bank Group-assisted water resource projects FOR OFFICIAL USE ONLY

GLOSSARY

Daerah - Irrigationdistrict (about 90,000 net ha of sawah) Juru - Irrigationoverseer (responsiblefor 500-700 net ha of irrigated sawah) Kabupaten - Administrativedistrict; headed by Bupati Pengamat - Irrigationinspector, head of cabang seksi Polowijo - Secondary food crops (maize, soybeans, cassava, groundnuts, sweet potatoes,etc.) grown mainly in dry season. Pronounced and written palawija in western Java Sawah - Lowland rice fields with bunds to collect irrigationor rain water and maintain controlledinundation Seksi - Irrigation section (about 25,000 net ha of sawah); a cabang seksi is a subsectionwith about 5,000 net ha regal - Dryland fields for growing of upland crops lUlu-Ulu - Village water master

PREVIOUS IRRIGATIONPROJECTS

Project No. Ln./Cr. No. Year approved Ln./Cr. Amount US$ million

I Cr. 127-IND 1968 5.0 II Cr. 195-IND 1970 18.5 III Cr. 220-IND 1970 14.5 IV Cr. 289-IND 1972 12.5 V Cr. 514-IND 1974 30.0 VI Ln. 1100-IND 1975 65.0 VII Ln. 1268-IND 1976 33.0 VIII Ln. 1434-IND 1977 63.0 IX Ln. 1435-IND 1977 35.0 X Ln. 1578-IND 1978 140.0 XI Ln. 1579-IND 1978 31.0 XII Ln. 1645-IND 1978 77.0 XIII Ln. 1691-IND 1979 50.0 XIV Ln. 1811-IND 1980 116.0 XV Cr. 995-IND 1980 45.0 Swamp ReclamationI Ln. 1958-IND 1981 22.0 XVI /1 n.a. n.a. 37.0

Total 794.5

/1 Proposed IrrigationProject XVI, presented to Board simultaneously with the project.

I t INDONESIA

SEVENTEENTH IRRIGATION (EAST JAVA PROVINCE) PROJECT

Table of Contents

Page No.

1. PROJECT AND SECTOR BACKGROUND ...... 1

General ...... 1 The Agricultural Sector ...... 1 Development Strategies ...... 2 Bank Group Assistance to the Irrigation Subsector . . . . 4 Performance Audits on Completed Projects...... 4 Bank Review of DGWRD Operations and Performance . . . . . 5 Disbursement Performance and Trends ...... 7

2. EAST JAVA PROVINCE AND PROJECT FORMULATION...... 8

Geographical Background ...... 8 Climate ...... 8 Soils ...... 8 Agriculture ...... 9 Irrigation Development ...... 11 Groundwater Development ...... 15 Groundwater Resources ...... 16 Irrigation Agencies in East Java ...... 16 Funding of Irrigation Activities in East Java ...... 20

3. THE PROJECT ...... 23

Project Description ...... 23 Rehabilitation of Irrigation Systems...... 24 Upgrading for Efficient Operation and Maintenance . . . . 29 Groundwater Development ...... 30 Studies and Design ...... 33 Status of Planning and Design ...... 34 Implementation Schedules ...... 35 Cost Estimates ...... 36 Financing ...... 37 Procurement ...... 39 Disbursements ...... 39 Accounts and Audits ...... 40 Environmental Impact ...... 41 - ii -

Page No.

4.' ORGANIZATION AND MANAGEMENT ...... 41

Rehabilitation and Upgrading for Efficient O&M Subprojects 41 Consultant Services for Rehabilitation and Upgading for Efficient O&M Subprojects ...... 43 Groundwater Development Subproject...... 44 Consultant Services for Groundwater Development . . . . . 44 Operation and Maintenance of Tubewells ...... 45 Studies and Design ...... 46 Monitoring and Evaluation ...... 47

5. AGRICULTURAL PRODUCTION, ECONOMIC JUSTIFICATION AND RISKS . 47

General ...... 47 Groundwater Subproject ...... 49 Rehabilitation Subproject ...... 51 Farm Incomes and Cost Recovery ...... 53 Risks ...... 54

6. AGREEMENTS AND RECOMMENDATIONS...... 55

LIST OF TABLES IN THE MAIN REPORT

2.1: East Java: Land Use ...... 10 2.2: Major Seasonal Crops in East Java, 1978-79 ...... 11 2.3: Irrigation Areas Not Yet Included in Rehabilitation Programs ...... 13 2.4: Budgeted Expenditures for Irrigation in East Java, 1969-82...... 21 3.1: National Tertiary Program Works in East Java ...... 26 3.2: Summary Implementation Schedules ...... 35 3.3: Project Cost Summary ...... 37 3.4: Project Financing ...... 38 4.1: Consultant Inputs for Rehabilitation and Upgrading for Efficient O&M ...... 43 4.2: Consultant Inputs for Groundwater Development...... 44 4.3: Consultant Inputs for Studies and Design for Future Projects...... 47 5.1: Expected Annual Production Increases from Groundwater Development...... 50 5.2: Projected Changes in Cropping Pattern, Early Dry Season, Tanggul Scheme .52

ANNEXES

1. Cost Estimates, Schedules of Expenditures, Cost Estimates by Category of Works, Proposed Allocation of Loan Proceeds, Estimated Schedule of Disbursements, Unit Costs and Standards, Phasing of Well Drilling, Consulting Services, List of Equipment and Procurement Schedule for Materials and Equipment. - iii -

2. CommodityPrice Projections,Summary of Commodity and Price Projections,Input Costs and Farm Revenues Per Crop, Cropping Pattern Changes, Cost and Benefit Streams, SupplementaryCrop Budgets, Cropping Patterns and Water Usage, Calculationof Net Benefits, Net Farm Incomes.

3. Required District Level EngineeringStaff, AvailableEJIS Staff, FunctionalResponsibilities for RehabilitationEngineering, Full Project Staffing, Operation and MaintenanceSubproject.

4. Statementsof Expenditure.

5. Project File References.

6. ClimatologicalData.

CHARTS

23414 - Organizationof the DirectorateGeneral of Water Resources Development

23415 - East Java Province Irrigation Service

23416 - Implementation Schedule

23202 - Designs and Studies Schedule

MAP

IBRD 16037R - East Java Province IrrigationProject IBRD 16315 - SeventeenthIrrigation Project Areas

INDONESIA

SEVENTEENTH IRRIGATION (EAST JAVA PROVINCE) PROJECT

1. PROJECT AND SECTOR BACKGROUND

General

1.01 The Government of Indonesia (GOI) has requested Bank and IFAD assistance for a program of irrigation development in the Province of East Java, comprising: rehabilitation of existing surface irrigation systems serving about 50,000 ha; development of groundwater irrigation systems to serve about 13,000 ha; upgrading for efficient operation and maintenance of 140,000 ha of irrigation systems and establishment of improveA methods of operation and maintenance concentrated initially in selected districts where rehabilitation has taken place; and strengthening of the East Java provincial irrigation service (EJIS). The latter is in line with the goal of increasing EJIS capacity for irrigation development in order to reduce demands on the central Government's Directorate General of Water Resources Development (DGWRD) in the Ministry of Public Works (MPW). GOI has also requested assistance for studies and designs for proposed projects located in Java and Sulawesi (Parigi-Poso; Polmas-Sidrap; Kali Progo) and to study how best to strengthen the South Sulawesi Provincial Irrigation Service. The previous 15 water resource projects assisted by the Bank Group, as well as the swamp reclamation project, were implemented chiefly by DGWRD units, due to the magnitude and dispersion of the work and limited capacity at the provincial level. This project would be the first to be concentrated in a single province and largely implemented by a provincial irrigation service. This report is based on the findings of an appraisal mission composed of Messrs. J. Goldberg, H. Matheson, Ms. M. A. Bromhead (Bank), B. Sinclair, and K. Anderson (consultants) which visited Indonesia in May 1981, and contributions by Mr. D. Gunaratnam (Bank).

The Agricultural Sector

1.02 Objectives. The Government's major objectives for the agricultural and rural sector are to: (a) create productive employment to raise incomes of the rural poor; (b) increase domestic food supply to keep pace with rising demand; (c) expand agricultural exports particularly of smallholder tree crops; and (d) ensure productive, sustainable use of Indonesia's varied land, waLter and other natural resources.

1.03 Despite a 4% average annual growth of production, agriculture's share of GDP has declined from 40% to 30% since 1968, while its siare of e:.ports dropped from 45/. to 33% due mainly to the markedly increased value of oil exports. Nevertheless, the agricultural and rural sector remains of overwhelming importance to the great majority of Indonesians; nearly 80% of the population lives in rural areas, and agriculture is the major source of income.for about two-thirds of rural households and one-tenth of urban households. Some 15.6 million smallholder families produce subsistence and cash crops on 15.8 million ha, while 1,800 estates occupying 2.2 million ha produce mainly rubber, sugar, tea, palm oil, and tobacco. -2-

DevelopmentStrategies

1.04 Employment. Agriculture'sshare of total employmentdecreased from 69% in 1961 to 64% in September 1971, while in 1976 it ranged between 66% in March and 60% in October./l Nevertheless,agriculture remained by far the largest single source (with 46%) of new employment during 1971-76. Outside Java, employmentprospects in agricultureappear quite promising, given the sustainedincreases in the smallholderarea, due to land reclamation and irrigationdevelopment, including both Government-sponsoredand spon- taneous transmigration. In Java, rehabilitationof irrigation systems, which generated significantemployment in the last decade, should continue to provide additional constructionand farm work.

1.05 Food Crops. Given its limited manpower and financial resources, GOI has concentratedon increasingthe production of rice, the preferred staple food of the great majority of Indonesians. Rice production increased rapidly (4.5% p.a.) between 1968 and 1974, chiefly due to irrigation rehabilitation and the provision to irrigated rice growers of fertilizerand high- yielding variety seed, financed largely through the BIMAS credit program. The growth rate slowed markedly to 1.7% p.a. over 1974-77, in the wake of severe declines in fertilizerusage (due to restrictionson private sector fertilizer trade), successiveseasons of untimely rainfall, and unpreceden- ted attacks by pests and diseases, principallythe brown plant hopper and associated viruses. In 1978 rice production increased by 10% with favorable weather, improved and liberalizedfertilizer distribution,and nationwide Government-sponsoreddistribution of recently introduced pest-resistant varieties. Rice production in 1979 increased only 2% over 1978 due, mainly, to insufficientrainfall. 1980 saw one of the largest proportionalincreases (13%) in national rice production since records have been kept, to over 20 million tons milled rice equivalent,and preliminaryestimates of 1981 production are 21.6 million tons. Over the past decade, output of secondary food crops (maize, cassava, soybeans, peanuts, and sweet potatoes) grew more slowly, at an average of only 1.6% p.a., composed of a 1.1% p.a. average decline in area (much of this land shifting to irrigatedrice) and a 2.7% p.a. increase in yield. Due to the bumper rice harvests of 1980, Indonesian rice imports declined in that year to about 1.4 million tons, a total surpassedby Korea and representingonly about 15% of world imports, a considerableturnaround from the previous three years.

1.06 Tree Crops. The Government has embarked on a major effort to develop smallholdertree crops outside Java as part of its national rubber and coconut replantingand transmigrationprograms. The objective is to improve production on existing plantationswhile developing large areas of new land for settlement. One of the Government'smain approaches has been to use

/1 The share of agriculturalemployment in March ranged between 63% in Java and 72% in the Other Islands. The correspondingfigures in October were 57% and 66% respectively. The seasonal differences representeda drop of 6.7 million workers in agriculturalemployment. public estate companies to plant tree crops on land to be settled by local landless families as well as by transmigrants. These companies clear the land and provide settlers with planting material, other inputs, processing and marketing facilities. This approach is appropriate in view of constraining management and technical capabilities.

1.07 Future Strategy. To prevent a widening food production consump- tion gap, productivity and area under rice and secondary food crops must be increased. In Java, rice-cropping intensity could be raised through water storage, irrigation, and flood control projects although relocation of inhabitants of reservoir sites may delay progress. Yields and cropping intensity can also be increased by improving tertiary irrigation and drainage networks in conjunction with well-planned rehabilitation projects, developing groundwater potential and improving support services. In the Other Islands there is potential for new irrigation and swamp reclamation schemes which GOI is in the process of developing. Yields of existing varieties of secondary food crops could be increased by improved husbandry, including fertilizers and insecticides. GOI is now giving serious attention to varietal improvement of such crops.

1.08 Area Development and Transmigration. In 1980, about 88 million people lived in Java, at a density approaching 650 persons/sq km. The island, with 7% of Indonesia's land area, has 45% of the cropped area and 63% of the population. Java generally has more fertile soils and better infrastructure than the Other Islands; however, its cultivable land is almost fully utilized. In some watersheds cultivation already exceeds ecologically safe limits, contributing to increasing erosion, flooding, and siltation of reservoirs, irrigation canals and ports. GOI is preparing integrated watershed development projects to address this problem. The primary program for new area development in the Other Islands, as well as for creating employment and settlement nuclei for Javanese migrants, is transmigration. An organized transmigration program is important for regional and natural resource development in the Other Islands, production of food and export crops, and creation of employment and decent living conditions for landless Javanese.

1.09 Role of Government. While the private sector should be encouraged to expand its role in agricultural input supply, marketing, and processing, Government continues to bear the major responsibility for infrastructure, resource conservation, and other services. Despite marked improvements over the past decade, technical and managerial manpower constraints continue to impede planning and rapid implementation of agricultural and rural development, including irrigation and drainage works. GOI must therefore continue to strengthen its key rural development institutions, particularly through education, recruitment, training and retention of technical manpower.

1.10 Bank Lending for Agriculture. Since the first of 16 irrigation and swamp reclamation projects was approved in 1968, the Bank Group's agricultural lending has rapidly expanded to include estate and smallholder -4-

tree crops, fertilizer production and distribution, sugar, livestock, fisheries, research, extension, training, seeds, transmigration, and resource survey and mapping. The Operations Evaluation Department's Sector Operations Review of Bank Group agricultural lending in Indonesia (Report No. 2166, dated August 9, 1978) concluded that despite deficiencies in some projects, the Bank's portfolio in Indonesian agriculture was "of overall good quality and likely to contribute substantially to increased production." Within the context of GOI's agricultural objectives and priorities, as outlined in Repelita III, future Bank lending is expected to focus on:

(a) a diversified irrigation, flood protection, drainage and swamp reclamation program to intensify rice cropping on Java and to expand water resources infrastructure in the Other Islands;

(b) smallholder and nucleus estate tree crop planting programs including industrial forest estates; and

(c) area development projects aimed at (i) watershed management to conserve soil and ensure long-term productivity in the densely populated areas of Java; (ii) rural works programs; and (iii) transmigration.

Bank Assistance to the Irrigation Subsector

1.11 The Bank has provided $757.5 million /1 for project assistance in irrigation and has played a significant role in Indonesian irrigation development since 1968. The earliest Bank supported irrigation projects were designed to rehabilitate major systems to quickly increase rice production. Later projects upgraded existing systems and financed drainage and flood protection works and tertiary networks. There has been little construction of new systems. Studies supported by the Bank for possible investment in the next few years include large storage dams to serve existing irrigation system. Bank assistance was channeled through two special agencies /2 of the Directorate General of Water Resources (DGWRD) which were set up to implement Bank projects, but now supports also operations of the Directorate of Rivers, (Loan 1691-IND) the Directorate of Swamps (Loan 1958-IND), and the Directorate of Planning and Programming (Cr. 995-IND).

Performance Audits on Completed Projects

1.12 The first four Bank-assisted irrigation projects have been completed and performance audits issued./3 The most serious problems were

/1 Not including proposed Irrigation XVI presented to Board simultaneously with this project (see frontispiece).

/2 PROSIDA and PIBD

/3 Credit 127-IND, PPAR Report No. 2047, May 1978. Credits 195, 220 and 289-IND, PPAR Report No. 3269, December 1980. -5-

constructiondelays and cost overruns. Delays arose mostly' because of GOI's unfamiliaritywith internationalprocurement procedures, cumbersonm local bidding, contractingand fund release procedures,and shortage of local funds. Cost overruns were due to additional quantititiesof work found to be needed following detailed design, and increasedunit costs from unexpectedlyrapid inflation and constructiondelays. However, these cost increaseswere more than offset by higher rice prices. Although it is not possible to disaggregatebenefits between irrigationand supportingservices due to concurrentand subsequentprojects, economic rates of return of the four projects are expected to exceed 40%.

1.13 These lessons were taken into account in formulatingand implementing subsequentprojects. Appraisal quantity and cost estimatesare now based on final designs for at least the first year's work program and major structures. Multi-year contractswith price escalation provisions,standard contract documents and standard bid evaluationprocedures have been introduced together with mobilizationand prompt payment provisions. Other problem areas being tackled include: improvingeffective operationand maintenance services (O&M) at the provincial level; providing technicaland administrativesupport to water user associations;and promotinggreater efficiency in water use.

]L.14 In recent Bank irrigationprojects, measures have been taken to improve O&M includingproviding adequate staff; and increasedand timely budgetary support. These measures improved O&M funding, but not standards. Specific proposals to improve O&M in East Java Province are included in the proposed seventeenthirrigation project and may be proposed in later projects for other provinces. The importanceof ensuring farmer commitmentto tertiary developmentwas recognized from the first tertiary subproject supported by the Bank (Ln. 1268-IND). Water user associationsare established before starting tertiary constructionand later collect member c-ontributions,normally in kind after each harvest for O&M. Actions are included in the project to provide better training and support for such Water user associations(para. 6.01g).

Bank Review of DGWRD Operationsand Performance

1.15 In 1975 and 1978 the Bank reviewed GOI's irrigationprogram, its contribution to national food supply, and the ability of DGWRD to expand its activities./I These reviews reported on the remarkable success of DGWRD and the ability and energy of its senior staff, but concluded that the present staffing and organizationalstructure of DGWRD needed further strengthening.

1.16 Although measures have been taken to accelerateproject implementation since then, many projects still suffer delays, primarilyduring the startup period. Bank Group experiencesince 1978 confirms that the

/1 The IrrigationProgram Survey (No. 705-IND),April 15, 1975 and the Irrigation Program Review (No. 2027a-IND),October 16, 1978. -6-

present DGWRD implementationcapacity limits project and disbursement performance. The major causes of delayed implementationidentified during supervisionand the actions taken to address them are discussed below.

(a) Delays in land acquisition. Possible Bank assistance is being discussed to strengthenthe DirectorateGeneral Agraria (DGA), which is responsiblefor land acquisitionand registration. Measures have been agreed to use private surveyors or DGWRD surveyors where DGA capacity is presently insufficient. Assuranceswere obtained during negotiationsthat all land rights required for construction would be acquired in the year preceding construction(para. 6.01c);

(b) Inadequate contractorcapacity and constructionstandards. A project to assist contractorsthrough training and to improve supervisionof constructionand contractshas been prepared by the Ministry of Public Works and is being appraised by the Bank. The Bank is also assistingGOI to review constructionindustry policies and procedures;

(c) Difficultieswith surveying and mapping. The Bank has recommended improvementsfor quality standards and procedures. Equipment to expand and modernize surveying and mapping, and training of contractors and DGWRD supervisory staff is being provided under IrrigationXV (Cr. 995-IND). The GOI has also agreed that the National Agency for Coordinationof Survey and Mapping (BAKOSURTANAL)will oversee all GOI agencies' large-scalemapping needs, monitor availablephotography and mapping capacity,and increase capacity if needed (Section 4.09 of Loan Agreement 1972-IND);

(d) Delayed fund releases. GOI's budget system and fund release procedureshave been improved, and training in procurementand disbursementprocedures given to staff. Measures to improve budget processes in DGWRD have been initiated;and

(e) Reduced DGWRDannual budget allocations. GOI allocations for the irrigation sector have not kept pace with expectations of the Third Five-Year Plan and increasingly projects have been delayed. There is an overall shortage of funds for the sector program, and not enough flexibility for DGWRDto quickly divert funds during the budget year from slower moving projects to those which need more.

1.17 These steps to improve project implementation performance have been accompanied by an increasing dialogue between the Bank and GOI towards strengthening DGWRD's institutional capacity. The critical areas being addressed are:

(a) improving planning and programming, and the budget system to concentrate available financial resources on priority irrigation - 7 -

investments. DGWRD project appraisalcapacities are being established, a coordinatingunit for benefit monitoring and evaluation is being strengthened,and appropriateeconomic criteria are being determined for project selectionand preparation;

(b) improving the flow of management informationrelated to resolving problems of project implementation,including procurementand constructionprogress so that managers can take earlier remedial actions whenever necessary;

(c) reducing the administrativeand executive burden on the Director General, and increasinglydelegating responsibilities. Several alternativestructural changes are under considerationby GOI;

(d) progressivelyreducing the extensiveuse of foreign consultants employed by DGWRD for feasibilityand engineeringdesign work, and to a lesser extent for constructionsupervision; and

(e) reviewingthe DGWRD work program and budgets proposed from 1982/83 to 1988/89 and the relevant institutionalimplications.

1.18 Institutionalstrengthening has become an increasingobjective of Bank assistance. Bank inputs will also seek to address policies and procedureswhich could improve the sector program or accelerateproject implementation. While the institutionalstrengthening now started is progressing,lending, which will include increasing cofinancing,will focus on te,chnicallycomplex projects where high design standardsmust be set, or difficulteconomic choices made. These measures are designed to move progressivelytowards sector lending.

DiisbursementPerformance and Trends

1.L9 Disbursementsof previous Bank irrigationLoans reflect the delayed project implementationschedules. Currently, cumulativedisbursements (IrrigationV-XV) run at about 55% of appraisal estimates,with little difEferencebetween projects. This performanceis in line with experience for IrrigationProjects supportedby the Bank in the Region, and with other sectors in Indonesia. Progress has been made in improvingdisbursements (which were below 50% in FY80) through more intensive supervisionby the Banik'sstaff resident in Indonesia, the use of statementsof expendituresfor small civil works contracts,and by acceleratingstart up activitiesof new projects. For the seventeenthirrigation project consultant short lists and proposed direct invitationsfor consulting services were agreed with the Bank at appraisal,and evaluationof proposalswas in progress at the time of negotiations. Because lengthy bid evaluationsand GOI procurement control clearanceshave frequentlydelayed contracts,during negotiationsGOI agreed that the contracts for consultingservices for the EJIS rehabilitationand upgrading subprojectwill be negotiatedand approved in accordancewith GOI -8-

procurement control procedures before Loan Effectiveness(para. 6.03). These actions, together with other actions in progress to reduce project implementationdelays (para. 1.16) are expected to result in progressive improvement.

2. EAST JAVA PROVINCE AND PROJECT FORMULATION

GeographicalBackground

2.01 East Java province,which includes the island of Madura, extends over some 48,000 km2, and with a populationof 30 million is the most popu- lous in Indonesia. Its capital, Surabaya,is the second city of Indonesia and the main entrepot for the east. The topographyis dominated by volcanic mountains several of which rise to over 3,000 m (Map 16037R). The two main rivers are the Solo and the Brantas, the former rising in Central Java between the volcanoes Merapi and Lawu and flowing to the Java Sea north of Surabaya. The Brantas rises north of Malang in a bowl formed by several of Javas highest peaks (Semeru, Arjuno, Kawi), flows around these mountains to Mojokerto, where it bifurcates and reaches the Strait of Madura at Surabaya and south at Porong. The alluvial plains and slopes at the feet of the volcanoes are fertile and intensivelyfarmed. Exceptionally,the Tuban area in the northwest and some hilly areas in the south and southwest are limestone.

Climate

2.02 The climate has uniformlyhigh temperatures,high humidity and heavy rainfall (Annex 6). There are two distinct seasons, the wet season from November to May and a dry season from June to October with limited and unpredictablerainfall. Average annual rainfall,over 80% of which falls in the wet season,varies from less than 1,500 mm on the northeast coast and on Madura to over 4,000 mm in the higher mountains; on the plains the average is about 1,800 mm. Mean air temperatureand relative humidity remain almost constant throughout the year, at about 270C and 79% respectively. Solar radiation is sufficient to grow a wide range of tropical and subtropical crops.

Soils

2.03 East Java has unusually fertile soils which cover large areas, generally developed from intermediateto basic volcanic rocks. In areas over 600 m elevation,volcanic ash soils, younger lateritesand podsolic boils predominate. The areas lying below 600 m are agriculturallymost important. Soils originatingfrom quartcruaryand volcanic rocks are exceptionallyfertile, but tertiarymarl and calcareous soils of low fer- tility are also found, particularlyin the northern part of the province. -9-

Agriculture

2.04 Over half the land in East Java is used for agriculture,on which over 60% of the population is dependent for its livelihood. The most econ- omically productive and valued land category is irrigated sawah (riceland), which is typically bunded to retain irrigationand rain water for rice cultivationin the wet season, and where irrigationwater supplies permit, during the dry season also. /1 Sugarcaneis also grown on irrigatedsawah, on a very long-term rotation with rice, and takes 80,000 ha out of rice production annually. As rainfall and river flows diminish drastically during the dry season, and existing dam reservoirs on the Brantas and other streams can store only a fraction of excess wet season flows, only 35% of the 925,000 ha of land in this category can be planted to rice during the dry season. The remainder is planted chiefly to maize, soybeans,groundnuts, cassava, and sweet potatoes (collectivelyknown as polowijo)/2or tobacco.

2.05 Other agriculturalland includes rainfed sawah, where heavy soils permit wet rice to be grown during the rainy season without irrigation. Tegal consists of dry upland fields,where some dryland rice is grown but maize is the predominantcrop. Cassava is extensivelyplanted on tegal land, either in rotation or intercroppedwith maize and other crops. A wide range of crops (includingcoconuts, fruits, vegetables,and medicinal herbs) are grown for family use and sale in the house compounds,which represent a major agriculturalasset in Java given the extreme density of population, tiny farm holdings averaging less than 0.4 ha in area, and large number of families without fields. The distributionof major land use categories is given in Table 2.1.

/1 In small particularlyfavored areas of East Java, triple-cropping of rice is practiced.

/2 This term is pronouncedand written palawija in Western Java. - 10 -

Table 2.1: EAST JAVA: LAND USE

Category Area Percentage of (ha) total area

Irrigated sawah 925,000 19.2 Rainfed sawah 322,000 6.7 Tegal 1,188,000 24.7 Housing and garden compounds 642,000 13.4 Coffee and tea plantations 226,000 4.7 Forest and scrub 1,223,000 25.5 Unproductiveland 274,000 5.8

Total Land Area 4,800,000 100.0

Source: Annex 5, Reference A, Vol. 1, pg. 4.

2.06 Table 2.2 presents average net area harvested, production and yields for major food crops and tobacco in East Java for the years 1978-79. 1978 was officially assessed by the EJIS as "extremelywet" on the basis of an annual rainfall of 2,392 mm (averaged over all 36 irrigation sections in the province), a 7-month rainy season, and commencementof the wet season in December. 1979 was "relativelydry", with average rainfall of 1,813 mm and a 6-month wet season beginning in December./l

2.07 For wet rice, areas planted, production,and average yields in the province have increasedin recent years largely independentlyof average rainfall, as in 1978-79. While data for 1980 are not complete, it is clear that rice production growth acceleratedrapidly despite average rainfall of 1,400 mm. In that year, East Java smallholdersprovided about 800,000 tons of milled rice to the national rice procurementagency (BULOG) out of a total national offtake of 1.6 million tons, twice as large as any previous

/1 Annex 6, Reference B, pg. 39. - 11 -

Table 2.2: MAJOR SEASONAL CROPS IN EAST JAVA, 1978-79

Net area harvested Production Average yield (ha) (tons) (tons/ha)

Wet rice /a 1,324,000 4,978,000 3.76 Dry rice 7a 60,000 83,000 1.38 Maize 1,161,000 1,636,000 1.41 Cassava 438,000 4,032,000 9.21 Sweet potatoes 44,000 292,000 6.63 Groundnuts 136,000 119,000 0.87 Soybeans 362,000 352,000 0.97 Smallholder cigarette tobacco 109,000 46,000 0.43

/a Rice productiongiven in dry unhusked grain.

Sources: Central Bureau of Statistics,annual reports on food crops. For tobacco, U.S. Department of Agriculture estimates. domestic rice procurementachievement./I The surprisinglylarge recent increasesin provincialrice production can be traced to several factors, includingwidespread adoption of pest-resistanthigh yielding rice varieties and increasedfertilizer use togetherwith continuing programs of irrigation developmentand upgrading in East Java.

IrrigationDevelopment

2.08 Background. Irrigation has been practisedin East Java for cen- turies. Early systems were primitive,usually involvingthe diversion of streams into sawah fields for the annual rice crop. Later more sophisti- cated systems were constructedby the Dutch, originally for sugar p:Lantations;these were generallywell designed and constructed. Most of the 861 irrigationunits serving paddy smallholdersin East Java today were constructedbefore 1941.

/] Official estimates for 1981 imply a total BULOG domestic procurementof 1.8 million tons, of which East Java would supply 950,000 tons. - 12 -

2.09 With few exceptions,existing irrigation systems rely on run-of- the-river diversionswhich can assure water supplies from the start of the wet season through the early part of the dry season (para. 2.02). Depending on topography,a stream with a 10-15 km run through sawah areas may have five diversionweirs. Villages and towns frequently straddle larger canals and canal structures,which provide the only drinking water, and town sewerage and drainage available for as much as half the populationof East Java.

2.10 In line with the national approach to irrigationoperation and maintenance (O&M), the EJIS controls the source of each irrigationunit, primary and secondary canals, and tertiary offtakes. Within the tertiary blocks of 50-150 ha of sawah, farmer groups operate the tertiary canals and field channels. Primary and secondarycanals in East Java total about 1,100 km and 5,600 km respectively. The EJIS has field offices throughout the province organized in 10 irrigation districts (averaging90,000 ha of sawah), 36 sections (25,000 ha), and 180 subsections(5,000 ha).

2.11 From the beginning of World War II until the middle 1970s the irrigation systems received very litle maintenanceand deteriorated.The O&M staff and funding availablewere devoted to the most crucial upkeep of major structures (few of which have failed) and dry season water distributionand rationing. Prevention of silt accumulationthroughout the system and installationor replacementof gates and measuring structureswere beyond the capabilitiesof the irrigation services. While system capacitieswere reduced, demands increasedas estate sugar was replaced by smallholderrice, new sawah areas were irrigatedand double cropping of rice became common practice with new varieties.

2.12 In 1969 GOI commenced a large program of irrigationrehabilitation and upgradingwhich has received continuous Bank Group assistance (paras. 1.11-1.14). In East Java the highest priority for rehabilitationwas assigned to Brantas Delta irrigationarea (33,000 ha) in the Mojokerto irrigation district surroundingSurabaya, and to the three easternmost districts on the island known collectivelyas Pekalen-Sampean(290,000 ha). Basic rehabilitationbegan in these areas in 1971-72, and was completed in Brantas Delta in 1976 with Japanese assistance and in Pekalen Sampean in 1980 under Irrigation IV (Credit 289-IND)./1 A fourth complete irrigation district (150,000 ha) encompassingthe Madiun Valley in the western part of the province is being rehabilitatedunder IrrigationProjects VIII (Loan 1434-IND) and XIV (Loan 1811-IND)while rehabilitationof the Bojonegoro district (91,000 ha) covering the lower Solo River Basin is being

/1 Tertiary canal constructonin Pekalen-Sampeanis being financed under Irrigation Projects VII (Loan 1268-IND) and XIV (Loan 1811-IND). - 13 -

studied and designed with Canadian assistance. Finally, in the Brantas Basin ADB is financing rehabilitationor new constructionserving 37,000 ha in three project areas.

2.13 Many works and even entire irrigationschemes in areas already covered require further work; limited budgets even for recent externally aided projects have necessarilyforced rehabilitationin the above mentioned regions to be concentratedselectively on highest priority works./l As nearly a decade has passed since the first surveys in Delta Brantas and Pekalen Sampean, many works and schemes considered adequate then should now be included in an upgrading program, and this is addressedunder the operation and maintenancesubproject of this project. Nevertheless,there remains a large number of irrigation schemes, constitutingabout 35% of the total irrigatedarea of East Java and concentratedin the Brantas Basin and the Island of Madura, which has never been included in any large-scale rehabilitationprogram. These areas, which must now be considered the highest priority regions in the province for survey and remedial work, are summarized in Table 2.3. Proposed project works form a time slice of a rehabilitationprogram for these areas.

Table 2.3: IRRIGATIONAREAS NOT YET INCLUDED IN REHABILITATIONPROGRAMS

Irrigation Areas included in Unrehabilitated district other programs areas (ha)

Malang 88,870 Kediri Lodoyo, Waru 112,410 Jombang Turi 57,230 Mojokerto Brantas Delta 37,193 Madura 22,426

3182129

/l One engineeringaspect frequentlydisregarded during initial rehabilitation appears to have been cross-drainagein hilly areas, where many canals are susceptibleto undermining. - 14 -

2.14 While individual schemes vary widely in physical condition and operational capability,the followingproblems are typical:

(a) Intakes: Most weirs and intakes require structural repairs, and many gates are in poor condition,requiring replacementor major repair. Stop logs have been removed and metalwork is rusted and damaged. Many gates cannot be operated because of silt deposits and on some the hoisting mechanisms are defective. A major complaint is the difficulty in adjusting and the slowness of action of the sluicing and regulating gates, which is partly a problem in the original designs. In some cases, erosion of aprons and wing walls has occurred which threatens the stability of structures.

(b) Canals and canal structures: Most canals suffer from excessive silt deposition and loss of capacity. In other reaches severe erosion continues to occur. This has resulted in damage to canal banks and inspection roads, and is the cause of excessive seepage. Near villages canals are partially blocked by domestic and village refuse. Many damaged canal structuresare no longer operational. Flash boards have been removed and drops replaced with rock and brush plugs. Control gates are damaged or nonexistent. Masonry lining along the canals and near structures requires extensive repairs.

(c) Tertiary systems: The present tertiary systems are inadequateto achieve full benefits of irrigation. Intakes are primitiveand lack facilitiesfor efficientlydelivering, measuring and appor- tioning the water in the dry season. Channel banks are usually in poor conditionand cross-sectionshave deteriorated. This leads to farmers having to steal water from main system canals, and also running water from field to field, which is wasteful and inefficient.

(d) Drains: Drainage is usually achieved by farmer-constructedout- let drains to a canal or natural drainage channel. Virtually all drainage maintenance is performed by the farmers or villagers. In some areas farmers have dammed drains to provide a water supply pool, leading to flooding elsewhere. In general improved drainage is needed in the lower areas to remove excess water and avoid waterloggingof crops.

(e) Access roads: Many major canal systems lack roads for inspection or equipment access. In other cases, erosion of canal banks has caused access roads to become impassable. - 15 -

GroundwaterDevelopment

2.15 Given East Java's pronounced dry season, but large areas of sawah and high paddy yields when water is available,DGWRD has undertakenover the past decade groundwaterexploration and developmentthroughout the province. These investigationshave been carried out by P2AT,/1 the groundwater organizationwithin DGWRD (para. 2.24). Initial exploratorywork was conducted in the Madiun-Soloarea under Irrigation IV /2 (with consultants ElectroconsultNippon Koei), and in the Kediri-Nganjukarea assisted by British aid with MacDonalds consultants. Examinationof geologicalhistory, tectonic structure,lithology, characteristicsof the aquifer system, recharge and discharge capabilitiesand water quality suggested promisingsupplies.

2.16 By 1977 enough work had been carried out in Madiun to identify sufficientgroundwater to irrigate30,000 ha or more, mostly through supple- menting surface irrigation. A pilot groundwaterirrigation scheme for 2,800 ha was undertakenwith IBRD financing,/3to test the feasibilityand problems involved with large scale groundwaterdevelopment. By July 1980, 33 tubewells had been installed in the pilot project area, with encouragingresults.

2.17 Pilot groundwater schemeswere started in Kediri-Nganjukwith British aid. By 1976, 26 tubewellswere operating, and by 1980 there were 67 pilot wells in 3 areas, irrigating1,652 ha. Tubewell command areas were small relative to Madiun, since most cultivated land in the pilot areas had previouslybeen entirely dependent on rainfall. Long-term developmentpoten- tial is estimatedat about 25,000 ha. In Kediri-Nganjukcropping patterns were studied and models for cultivationwith groundwaterwere developedwith local extension staff. Water user associationswere formed and in Kediri these have developed successfully;in the longer establishedtubewell areas farmers are organizing and paying for tubewell pump operation themselves. Maintenance is carried out by P2AT (paras. 4.13, 4.14).

2.18 Hydrogeologicalinvestigations elsewhere in East Java were begun in 1976, also with British aid. Survey work was completed in late 1979, and 15,000 to 20,000 ha in water-shortareas were estimated to have good groundwater potential. These were mostly in Tuban in the north, in Mojokerto beltweenSurabaya and Kediri, and in Jember-Lumajangin the southeast. Over 100 exploratoryholes and test wells were drilled, and by May 1981, 4 pilot productionwells had started in Tuban, and 4 in Mojokerto.

/1 Proyek PengembanganAir Tanah.

/2 Completed under IrrigationVI (Loan 1100-IND).

/3 IrrigationVIII (Loan 1434-IND). - 16 -

2.19 In summary, groundwater potential in East Java has been well studied for the past 10 years. Investigations in the Madiun and Kediri-Nganjuk areas indicate that groundwater development may readily move from the pilot to the development phase under the proposed project. Pilot schemes and further investigatory work elsewhere in East Java will benefit from experience in the longer established tubewell areas. P2AT has built up experience in groundwater development, and over the next five years should be able to take over many responsibilities presently assumed by consultants.

Groundwater Resources

2.20 The principal aquifers capable of supplying groundwater to large- capacity irrigation wells are the thick water bearing strata amongst alluvial sediments and the limestones of the northern hill zone. Water levels in wells are generally only a few meters below land surface although in some areas of confined groundwater the artesian pressure is sufficient to cause the wells to flow without pumping.

2.21 Recharge to the aquifers occurs primarily during the November-May season of heavy rainfall, both from direct infiltration from precipitation and stream flow as well as seepage losses from irrigation channels and paddy fields. Extensive monitoring of water levels in the pilot areas irrigated from wells has shown the recharge to be rapid and capable of sustaining withdrawals of groundwater to meet project requirements as well as for additional areas for future development.

2.22 The chemical quality of water is suitable for irrigation with low salinity or alkalinity hazard. The only exception is a narrow strip up to 1 km wide bordering the sea in various subareas where salinity may be excessive, particularly at depth. Complete data on the groundwater balance has not yet been collected, but expected yield at full development would be enough to irrigate about 75,000 ha without recharge problems. Thus the proposed project for about 13,000 ha would have no adverse effects on the overall aquifer level, though there may be local recharge problems which should be carefully monitored.

Irrigation Agencies in East Java

2.23 Central DGWRD Units. Most large-scale irrigation development in East Java is managed by project units of central DGWRD agencies (Chart No. 23414). The Directorates of Irrigation and Rivers maintain project offices in Sidoarjo and Bojonegoro to administer planning, development, and recurrent activities in the Delta Brantas and Lower Solo project areas respectively, while PROSIDA maintains offices in Madiun, Jember, and other towns as headquarters for Bank-financed rehabilitation and tertiary development programs. In these centrally-controlled project areas, however, much of the design and other engineering work and all operation and maintenance are performed by provincial (EJIS) staff, who are frequently seconded to project units for this purpose. - 17 -

2.24 P2AT. The most specializedcentral DGWRD project unit working in East Java is P2AT, established in 1971. P2AT headquartersare in Jakarta, and exploratorywork has been carried out in Central Java, Bali, Lombok and Yogyakarta (GunungKidul) as well as East Java. However, over half of known groundwater resourcesare in East Java, where most staff outside headquarters are concentrated. P2AT is divided into two subprojectunits in East Java, whose managers are responsiblefor activities in Madiun and elsewhere in East Java /1 respectively. Staff in both subprojectunits are divided into sections for administration,finance, technicalassistance, and operational field staff. Field staff are further subdivided into units of survey, planning and drilling, irrigationand agriculture,and equipment and materials. The East Java manager, based in Surabaya, is also responsiblefor M4adura,where investigationshave so far revealed only limited resources. There are offices in Surabaya,Madiun, and Kediri, where most development activities outside Madiun in East Java have so far been concentrated. There are also well-equippedworkshops in Kediri and Madiun.

2.25 P2AT currently has approximately480 staff in East Java, including 65 senior technical staff. Most professionalstaff are irrigationor groundwaterengineers or geohydrologists. Drilling supervisorsand foremen are also gaining experience. P2AT is weakest in its mechanical staff; their role will become increasinglyimportant as more pumps are installedand a maintenance program is established. The total also includes over 80 financial and administrativestaff, concentratedin Surabaya, and 135 pump operators. The latter are currently employed by P2AT to operate existing pumps; in the future, however, they will be employed and paid by water-user associations commencing two years after pump installation.

2.26 EJIS. Within the East Java Province Public Works Department there are three major functional services which operate fairly autonomously: roads, housing and urban development,and irrigation. The Chief of the irrigation service (officiallytitled Deputy Director of the Provincial Public Works Department) is administrativelyresponsible to the Provincial Governor through his Director, but for all technicaland personnelmatters he comes under the jurisdictionof the centralDirector General of Water R,esourcesDevelopment. This pattern is similar to other provincialser- vices. The agency in DGWRD generally responsiblefor guiding and coordin- ating provincial irrigation activities is the Directorate of Irrigation (DOI), with central units responsiblefor O&M, rehabilitation,and the national tertiary program (para. 3.07). The headquartersof the EJIS in Surabaya includes sections for planning and design, operationand maintenance, irrigation development(rehabilitation and new systems),rivers and

/1 Administratively,P2AT operations outside Madiun are divided into subprojects for Madura, Kediri-Nganjuk,and East Java (Tuban, Mojokerto, Jember, Pasuruan,.etc.),following mainly the phasing of British aid projects. - 18 -

swamps (includingflood protection and disaster relief), and logistics (includingworkshops and stores), as well as specializedstaff for accounting, personnel, legal, information,and other matters (Chart No. 23415). The headquartersoffices and workshops carry about 300 permanent staff (includingabout 20 fully qualified engineers) and 150 daily paid workers. Aside from the routine administrationof the 7,000 staff of the service and procurement functions, the headquartersmust fulfill numerous allocative and technical functions. East Java is dependent on its irrigation systems and organizationfor its basic subsistence. The 925,000 ha of irrigatedsawah provide the basic food supply and income to about 2.3 million families (12 million people). Together with the Food Crops Agriculture service /1 the EJIS is held directly responsiblefor ensuring the rice harvest. On the other hand, the 33 sugar mills in the province have strict quotas to meet as part of a national effort to reduce imports, and their demands for land and water must be weighed against the needs and smallholderpreferences for rice cultivation. As dry season water supplies are severely constrained, particularlyin the Brantas basin and Madura, the EJIS must allocate water among scheme areas and irrigationblocks in ways which will balance equity with productive efficiency;this is the major operationalproblem of the EJIS. In the densely populated lowlands any overtoppingor breaching of flood dikes endangershuge populations;limited funds for river training and flood control must be allocated weighing risks and demands in various districts.

2.27 Technical tasks of the headquartersunit include survey and design for the national tertiary constructionprogram and for large rehabilitation, new irrigationconstruction, and flood control programs not financed by the Bank,/2 and supervisionand programmingof O&M.

2.28 The typical irrigation district (daerah) employs about 650 staff (50 in the district office) and is responsiblefor 90,000 ha of sawah. The Chief of the district typicallyholds a B.I.E. degree,/3 although a few now hold the higher Ir. degree and an upgradingprogram is being establishedto permit officers to take higher degrees. The district office staff are

/1 Under the technicalguidance of the centralDirectorate General of Food Crops Agriculture in the Ministry of Agriculture.

/2 Bank-financedworks have been handled mainly by PROSIDA; other externally financed programs have not.

/3 This is the first engineeringdegree obtained in Indonesian univesities, typically after a 3-year course of study. The Ir. degree, obtained after a 5-year course, is considered full qualification. There are now 40 Ir. degree holders in the EJIS, roughly 20 at headquartersand 20 in the field. Of this total, 20 have now completed a one-year advanced course in hydraulic engineeringat Delft in the Netherlands. For purposes of comparison,the colonial governmentmaintained 63 fully qualified engineers in East Java in 1939. - 19 -

responsiblefor design of minor rehabilitationworks and repairs, supervis- ing construction,assessing prioritiesamong O&M and emergencyworks and repairs submitted from below within extremely tight budget constraints (paras. 2.33 to 2.35) and submissionof priorities to headquarters,and procurementof contract maintenance.

2.29 There are typically3 or 4 irrigation sections (seksi) in each district, each with about 170 staff (30 in the section office) controlling about 25,000 ha. Section chiefs are either B.I.E. degree holders or, more commonly, highly experiencedfield staff trained in technicalhigh schools./l The section is the lowest unit in the system which employs professional irrigation engineers,which forces a considerableamount of centralized decision-makingand reporting from lower levels on even routine O&M matters such as gate-settings. At this level, attention is clearly focussed on O&M matters, particularlyon detailed calculationsof dry season water allocations based on field reports and supervisionof contract maintenanceopera- tions. Section staff have also been the main contacts with territorial district officers (Bupatis,executives of kabupatens)and kabupaten irrigation committees on water allocation,sugar planting, small irrigationworks constructedwith INPRES kabupaten funds,/2 and tertiary canal construction programs which also function as employment programs./3 Under pilot O&M projects, funded by British aid and advised by MacDonalds consultants,four sections /4 have recently establishedlabor gangs which for the first time provide a skilled and mobile work force at section level capable of respond- ing to maintenanceemergencies throughout the section. The section gangs typically consist of four craftsmen(masons, bricklayers,painters, carpen- ters, constructionforemen) and three laborers and are provided with a pickup truck, jeep, and buildingmaterial. Previously,all skilled maintenance work had to be done by contract,which aside from cost considerations required a long procurementperiod unsuitable for emergencies. These section gangs, which are now being programmed for all 36 sections in East Java, would be expected to stop seepage in masonry walls, reline canals, repair and paint gates and other machinery, and do reconstructionwork up to a volume of about 5 cu m; heavier repairs would still be put out to contract.

/1 There is also an upgradingprogram to permit these valuable field staff to obtain B.I.E. degrees.

/2 INPRES is a revenue-sharingprogram under which annual allocationsare made to various levels of local government (para. 2.34).

/3 The main program of this kind is Padat Karya, under which concrete or masonry canal structuresare built by EJIS on its budget, and the earthworks are constructedby villagers on daily wages, provided by the Directorate of Bina Guna, DirectorateGeneral of Manpower,Ministry of Transmigrationand Manpower.

/4 Kasri in Malang district,Jember and Genting in Bondowoso district,and Mojokerto. - 20 -

2.30 Each section typicallyconsists of five subsections(cabang seksi) of about 28 staff each, headed by an inspector (pengamat). The inspectoris basically a foreman supervisingthe work of about eight irrigationoverseers (juru), with the overseersmeeting and dealing with farmers and village leaders who use the irrigation systems. The overseer traditionallyis responsiblefor a 500-700 ha irrigationarea, setting five or six gates, estimating flows, recording rainfall and agriculturaldata, arrangingfor emergencymaintenance of his secondarycanal, and persuading farmers through their village headmen and irrigationleaders (ulu-ulu) to maintain tertiary and quaternary canals /1 to agree on common planting dates which would permit rational irrigationwithoult conflict, to agree on micro-levelwater allocation among themselves,and to prevent water wastage and theft. The only paid assistance available to the juru has generallybeen two unskilled laborers (sometimes functioningas resident gatekeepers),clearly inadequate to maintain an average of 5 km of primary and secondarycanal, 8 control structures,and 6 outlets to irrigationblocks. Fragmented into small groups, the laborers provided no real capacity for systematicwork, and spent most of their time cutting grass on canal banks. Better organization and more laborers are clearly needed.

2.31 Another result of the pilot O&M schemes has been the establishment in pilot areas of subsectionunskilled labor gangs, of 7-13 men. These gangs do basic manual maintenance,such as digging out silt (particularlyin measuring flumes), rebuilding collapsed earthen canal banks, and weeding. Large canal desilting, and similarmaintenance works costing over about US$500, would still be contractedout. Properly managed, unskilled subsection gangs can accomplish substantialvolumes of work. The output of six pilot subsection gangs in Jember section (in the Pekalen Sampean region) in 1980 is given in Annex 3, Table 5. While these data indicate that weeding still accounts for a disproportionateamount of labor input, the gangs have accomplisheda considerableamount of other work and provided flexibility in response to seasonal and emergency situations,such as serious bank slides and silting up of importantcanals. As the EJIS is now planning to provide every subsection with a gang, management by inspectorsand overseers will become an importantarea for training and supervision.

Funding of IrrigationActivities in East Java

2.32 Table 2.4 summarizes major expenditureprograms for the irrigation sector in East Java since the beginning of the first five-yearplan in 1969. These data are somewhat misleading in two important aspects, in that they understate the near total financialdependence of the province on central Government subventionsfor irrigation(greater than the obviouslylarge

/1 The Government'sO&M responsibilityends at the secondary outlet; all O&M below that level is done by the farmers. Before 1975 all canals and drains below the secondaryoutlet were those built by the farmers themselves, led by their ulu-ulu and guided by the juru. - 21 -

Table 2.4: BUDGETED EXPENDITURES FOR IRRIGATIOU IN EAST JAVA, 1969-82 /a

Year program 1969-74 1974-79 1979/80 1980/81 1981/82 commenced ------(US$ million) /c ------/b

Provincial Programs Rehabilitation and upgrading 8.91 12.82 1.44 0.48 0.96 1969 Operation and maintenance (grant) - 20.34 4.32 6.24 7.14 1974 New irrigation development in deprived districts - 10.77 1.29 0.30 0.56 1974 River training/swaap reclamation - 1.32 0.26 0.73 0.83 1977 Staff training - 0.73 0.14 0.14 0.14 1976 Offices, housing, warehouses, equipment - procureaent and repair - 0.06 0.02 0.02 0.02 1978

Subtotal 8.91 46.04 7.47 7.91 9.65

National Programs Canalization in small and medium systems (including tertiaries) 4.87 10.95 2.60 4.92 5.65 1969 Flood control aad river training 2.51 2.51 0.47 0.66 1.43 1969 Hydrologic data collection - 0.26 0.13 0.14 0.11 1976 Warujayeng Turi-Tunggorono project - - 0.80 0.80 0.96 1979

Subtotal 7.31 13.72 4.00 6.52 8.15

Centrally Implemented Projects Delta Brantas - rehabilitation, upgrading, tertiaries 4.74 12.44 2.03 2.32 2.88 1972 Lodoyo Irrigation Project - 10.47 2.87 6.73 5.44 1976 Groundwater Development - liadiun/Solo - 2.18 0.80 0.67 }18.56 1975 Groundwater Development - Kediri/Nganjuk/etc. 0.40 4.19 2.16 2.99 1972 Pekalen Sampean - rehabilitation and tertiaries 3.37 54.82 7.97 11.39 10.26 1972 M1adiun- rehabilitatioinand tertiaries - 16.46 3.67 10.45 17.74 1975 Mt. Kelud - control of volcanic debris 1.93 5.07 1.22 1.66 1.12 1969 Mt. Semeru - control of volcanic debris - 1.56 0.79 1.12 2.21 1976 Madiun River Project (flood control) 0.75 1.67 0.82 2.26 1969 Lower Solo River Project (flood control } 7.49 and irrigation) 2.67 2.24 3.09 4.59 1969

Subtotal 13.86 111.10 25.42 44.18 65.70

Total 30.08 170.86 36.89 58.61 83.50

/a Does not include storage and regulating dams on Branras River run by power authority, or expenditures with provincial or nonsectoral (INPRES, Padat Karya, staff salary grant) funding.

/b Preliminary.

/c Conversion from rupiahs assumes weighted average of Rp 390 to USS1 in 1969-74, Rp 415 in 1974-79, and Rp 625 thereafter. Source: EJIS records.

N - 22 - share of national programs and centrally implementedprojects in the total), and on the other hand overstate the role of central Government agencies and staff. Almost all work on national programs is actually implementedby the EJIS, and EJIS staff are seconded to several of the central agency project units responsiblefor larger projects.

2.33 Like most other provinces, East Java's independentrevenues are severely limited. In 1981/82 they are projected at only US$41 million. Thus for irrigation only office operationalcosts and some staff training programs are funded by provincial revenues. Other recurrent costs are funded by subventionsfrom the central Ministry of Interior (MOI) through the provincialgovernment under two programs, one for operation,maintenance, and rehabilitationof irrigation systems /1, the other for salaries of permanent civil servants (including those mentioned in paras. 2.26-2.31 above)./2 Although still rather small, the O&M grant has risen at a com- pound annual rate of 36% in dollar terms over the past five years. The portion of this allocated for rehabilitationworks (as opposed to O&M) has declined to a negligible amount, even consideringthat rehabilitationin four of the ten districts (Madiun and Pekalen-Sampean)is executed by PROSIDA on its central agency budget. Most of the O&M funds are used to top up inadequatebasic salaries of permanent staff, and to employ 800 temporary overseers (jurus)and labor gang members./3 Thus in one form or another almost all recurrent government costs of irrigation are funded by the central Government.

2.34 New constructionis also almost wholly financed by central sources. The large-scaleprojects listed in Table 2.4 are on central agency (PROSIDA, P2AT and Directorateof Rivers) budgets, and the national programs implemented by EJIS are funded through DOI. Kabupatens typicallyexpend 20% to 30% of their block grants from MOI (INPRES kabupaten)/4on irrigationworks (small weirs and tertiary canals) and a small proportion of their IPEDA receipts on repairing structures. Villages also spend some of their small block grants (INPRESDesa, averagingabout US$1,600/village/year)on quaternary ditches, although a much larger proportiongoes to roads.

/1 For 1981/82 this amounted to Rp 4.4 billion (US$7.0 million) on the basis of Rp 4,900/ha (US$7.84)for irrigation.

/2 For 1981/82 this amounted to Rp 3.9 billion (US$6.2million) on the basis of Rp 4,300/ha (US$6.88)for irrigation.

/3 Local staff in Madura district estimate that 65% of their O&M funds are spent on wages, 30% on materials (cement, stone, grease, paint) and 5% on transport, etc.

/4 EJIS estimates than in 1979/80, 192 small irrigation schemes were financed by INPRES kabupaten in East Java province at a total cost of US$4.3 million (Annex 5, Reference B, pg. 120). It is not clear whether this entire cost was to be expended in one year. - 23 -

2.35 A comparison of the resources available to the irrigation sector in East Java and the magnitude of the development and O&M tasks in that sector yields the following general conclusions. The permanent civil service responsible for O&M and small-scale development (EJIS) is probably adequate in terms of numbers, but requires changes in organization patterns emphasizing more control of physical field work and less reporting. Certain development programs administered by EJIS may now be over-funded (e.g. the national tertiary program), particularly in relation to the small rehabilitation program outside the four PROSIDA districts (para. 3.08)./1 Increased funding of rehabilitation is thus both justifiable in itself and would rationalize investment in tertiaries. Regarding O&M, consultant studies indicate the usefulness of casual labor forces to provide real maintenance capability to field offices and overseers, and also that funding of these and other required physical maintenance would cost an incremental US$5/ha/year based on studies in four pilot sections. The project will include detailed surveys and studies leading to more precise recommendations on optimum levels of O&M and rehabilitation work and expenditures.

3. THE PROJECT

Project Description

3.01 The project will improve the productivity and incomes of about 150,000 farm families in East Java through the rehabilitation of about 40 surface irrigation schemes serving over 50,000 ha, the construction of tertiary irrigation networks in those schemes, and the development of about 240 production tubewells and associated distribution facilities serving about 13,000 ha. It will also lay the basis for continuation of rehabilitation and groundwater development programs by providing survey and design of 13,000 ha of rehabilitation in addition to the construction program, and through large scale groundwater exploration (including the drilling of 140 exploratory holes) concentrated in areas of East Java where groundwater development is more recent. The project will also provide for upgrading of already rehabilitated systems and for the establishment and monitoring of improved operation and maintenance procedures on about 140,000 ha in two pilot irriga- tiLon distr-cts and field studies of the interrelations between various levels oif engineering rehabilitation and costs and effectiveness of operation and maintenance. Studies and design for three projects for future construction on Java and Sulawesi (Parigi-Poso, Polmas-Sidrap and Kali Progo) will be carried out, together with a study on how best to strengthen the South Sulawesi Provincial Irrigation Service under the project. Inputs of international

/1] For 1981/82 the budget for rehabilitation in the six districts not covered by PROSIDA was doubled to US$960,000 (Table 2.4), or to about US$160,000 per district. Enlargement of one small culvert constricting a secondary canal in one of about 100 schemes in Mojokerto district would cost about US$8,000. - 24 -

consultants(paras. 4.06, 4.07 and 4.09) are designed to both ensure achievementof physical targets and to assist in strengtheninglocal engineeringcapabilities in EJIS and P2AT (particularlyplanning, operation and maintenance,and supervisionof design and constructionoperations) and local consulting firms (particularlyin field surveys and detailed design).

Rehabilitationof Irrigation Systems

3.02 This subprojectwill be limited to the areas within the irrigation districts of Mojokerto, Malang, Kediri, Jombang, and Madura (Map 16037R) not included in centrally implementedrehabilitation programs (paras.2.12-2.13). Of the 320,000 ha of irrigated land in this category, about 70,000 ha is served by village systems of less than 100 ha, which will be rehabilitatedand upgraded under ongoing GOI tertiary developmentprograms (para. 3.07). The remaining 250,000 ha, and addiitionalschemes requiring fundamentalrehabilita- tion in other districts (para. 2.13) including Bojonegoro,represent a 20-year program of work, consideringthe capabilitiesof EJIS, central DGWRD project units, and local consulting firms, and assuming a shift in emphasis of central agencies to larger scale storage and flood control works and a gradual build-up of EJIS and local consultant capabilities. The program could be implementedmore quickly with increasedforeign consultantassistance, but this would result in an imbalanceof foreign and local expertise and reduce technology transfer and institution-buildingfor EJIS and local consultants.

3.03 A priority evaluation system will be used to determine the works to be included under this project, which would represent a four year time slice of the rehabilitationprogram. A priority system was used by EJIS and consultant staff in reconnaissancesurveys of over 160 scheme areas in the five districts during project preparation. The surveys assigned weights to various agricultural,socioeconomic (population density, holding size), and water use factors as well as to scheme size and previous repair work invested in each scheme./l On this basis 80 schemes /2 were placed in the first priority category for rehabilitation,with a total service area of 115,000 ha and area requiring rehabilitationof 95,000 ha. During the first year of project implementation(1982-83) detailed surveys will permit a more detailed ranking of schemes, on the basis of severity of engineeringdeficiencies now constrainingwater management and agriculturalproduction intensity. Assurances have been obtained that EJIS will agree with the Bank on a detailed rehabilitationconstruction program based on such a priority evaluation system by April 1983 (para. 6.01(h)). The schemes to be rehabilitatedwill average 1,400 ha in total service area (median of 1,100 ha), with none over 5,000 ha. About 40 schemes will be rehabilitatedin whole or in part under this project, and an additional 15 will be designed for future rehabilitation.

/1 Annex 5, ReferenceA, Vol. 2, Annex 5.

/2 Listed in Annex 5, ReferenceA, Vol. 1, pgs. 43-45; shown on irrigation district maps following pg. 10 of that volume. - 25 -

3.04 Major Design Features. The approach to rehabilitation will be to review the state of each system and to restore it to its original condition, but departures from original designs will be made where warranted. For example, where particularlyheavy siltationhas occurred, an alternativeto massive desilting to regain original levels would be to redesign the system, so that the rehabilitated canalization is similar to the present regime evolved over the years. This could require raising canal banks, inverts (bed levels), and crests of numerous structures,which would be compensated for by reduced silt excavation. This basic decision will depend on the cost-effectivenessof the two approaches in each scheme, and the least cost alternativein each case will be selected. Assurances have been obtained with GOI that EJIS will agree with the Bank on these major design standards by April 1983 (para. 6.0lh).

3.05 As siltation is the major constraint on efficientirrigation deliveries of availablewater, a second major area of redesign of the original systems will be the provisionof silt exclusiondevices where headworks cannot prevent excessive silt from entering the system. In these cases settling basins or vortex tubes at the head of the main canal can prevent substantial portions of the silt from being dispersed throughout the system, in the first case by concentrating silt deposition in one location where it can be excavated manually or mechanically; in the second case by returning silt to the river automatically if available head and flow per- mits. The various alternatives (including manual excavation throughout the system on routine O&M) will be analyzed to determine a least-cost solultion for each scheme. In addition, under the upgrading for efficient O&M subproject (para. 3.15) a detailed field study of the effectiveness of silt exclusionmethods will be undertaken to guide design of rehabilitationand (&M programs over the long term.

3.06 In addition to desilting, rehabilitation will consist of structural repair of eroded and deteriorating weirs, intakes, syphons, drop structures, and canals, and major repair and replacement of defective or missing gates and flumes. Upgrading work, in addition to provision of silt exclusion devices where warranted, will include increasing system capacity for water diversion and distribution through raising of weir crest eleva- tions, intake capacities, and canal bank levels; provision of improved ,drainage and access road systems; selective canal lining;/l improvement of semitechnical systems by addition of control structures, measuring devices, and linking canals; improvement of non-technical village systems by intro- ducing permanent weirs and other structures to replace temporary structures; and the construction of tertiary irrigation networks where required.

,/l New canal lining will be introduced primarily for bank stabilization purposes in reachep liable to breach frequently; only slopes will be lined. - 26 -

3.07 Tertiary IrrigationNetworks. Tertiary system improvementand constructionin the five districts is far ahead of rehabilitationdue to the national tertiary program. A summary of work under this program in East Java is given in Table 3.1.

Table 3.1: NATIONAL TERTIARY PROGRAM WORKS IN EAST JAVA

Design Construction Year Annual Cumulative Annual Cumulative ------(area in ha) ------

1976-77 1,363 1,363 n.a. n.a. 1977-78 1,654 3,017 n.a. n.a. 1978-79 6,690 9,707 n.a. 5,258 1979-80 21,867 31,594 2,008 7,266 1980-81 32,400 63,994 19,371 26,637 1981-82 20,035 /a 84,029 /a 17,500 /a 44,137 /a

/a Proposed.

Source: Annex 5, ReferenceA, Vol. 2, pg. 3.1.

This program is supervisedby a Tertiary Development Section in the EJIS, which has a full-timeheadquarters staff of one senior engineer (section head), four assistant engineers.,three draftsmen and three surveyors. For surveys, designs, and costing, local consultantsare engaged. The EJIS and its consultantsconcentrate chiefly on structures,as earthworks are supervised by the provincial unit of the Ministry of Manpower and Transmigrationand built by direct labor under the Padat Karya Program (para. 2.29).

3.08 The national tertiary program grew from the substantialimprove- ments in water control and paddy production achieved in certain large Bank-assistedprojects (e.g. Pelcalen-Sampean)with the introductionof tertiaries. However, while Bank-financedtertiaries have typicallybeen introduced in schemes already rehabilitated,the national tertiary program has expanded so rapidly /1 that it is now moving into schemes which have not yet been rehabilitated. This could create problems during rehabilitation when controllinglevels, design discharges,and system layouts could be altered. Furthermore,tertiary construction(particularly earthworks) to

/1 The MPW target for the third five-year plan period (1979-84)is 2 million ha of tertiary construction. - 27 -

date has not been uniformly good. During negotiations, GOI confirm that it will rationalize the planning and implementation of tertiary construction in the five districts by:

(a) phasing the design and construction of tertiary networks to follow main system rehabilitation;

(b) implementing tertiary earthworks through contracts under EJIS supervision to raise quality standards and ensure that earthworks are coordinated with construction of structures. Local villagers would still be employed but they would be better paid and supervised; and

(c) using 1982-83 budgets for tertiary construction and design staff for the design of village systems, where introduction of tertiary networks will be similar to system upgrading. This will enable design of rehabilitation works in larger systems to move ahead of the tertiary design program for those areas, and to set relevant design concepts and criteria, while maintaining the overall pace of small-scale irrigation development. (Minutes of Negotiations para. 7, February 9, 1982).

3.09 The present situation of tertiary units in the five districts, based on surveys of 160 units, is as follows:

(a) tertiary channels generally exist but require rehabilitation; estimated earthworks would be equivalent to 40% of that involved in forming new channels. In the five districts an average density of 23 m/ha of tertiary channels would be achieved;

(b) quaternary channel density is low and their condition is poor, and rehabilitation would be equivalent to nearly 75% of new channel earthwork. Final quaternary density would average 52 m/ha;

(c) more drains and larger channel sections are needed. The amount of earthwork needed is estimated at 20% of that required for new channels. However, in approximately 50% of the area natural drainage will suffice. Therefore, the average required excavation will be equivalent to 10% of the earthwork involved in constructing new drainage networks. A final average drainage density of 29 m/ha would be achieved; and

(d) details of repairs and works to be performed on structures are indicated in Annex 1, Table 10.

3.10 Other Design Aspects. Many unofficial offtakes have been constructed on primary and secondary canals by villagers. These vary from - 28 - permanenL structuresto breaches in the canal banks. Most do not possess adequate control gates or measuring structures and fall into two categories:

(a) offtakes constructedto irrigate small areas, typically about 2 ha, not included in the original system and

(b) offtakes constructedto irrigate land which was originallypart of another tertiary unit.

Under the project, the first category will be replaced with new structures, includingundershot gates with spindles so that all abstractions from primary and secondarycanals can be controlled. Village offtakes in the second category, which constitute by far the greater proportion,normally require closing since they are disruptiveto operation and cause much wastage of water. In a rehabilitatedsystem these offtakes will generally become superfluousas water will be supplied via the correct tertiary canal. However, in some cases, for example when they split up an unmanageablylarge tertiary unit, they are desirable and will be incorporatedinto the system. In rearrangingtertiary unit boundaries in this way the optimum size of tertiary unit will be 50 ha, and if possible tertiaries of less than 20 ha or more than 100 ha will be avoided. As far as possible, tertiary unit boundarieswill remain within the original design.

3.11 Most existing road and footbridges,built by villages, are constructed of stone masonry or bricks; there are also many temporarybridges of wood or bamboo. The foundationsof those built recently on canal beds which are heavily silted are likely to slip when the canals are excavated. Also, due to their crude constructioncanal bridges often have large piers in the center of the canal which disturb the flow and the backing up and loss of head is not acceptable. In these cases replacementbridges will be provided. New bridges will also be provided on important roads or paths linking villages. New or replacementbridges will have single spans with reinforced concrete decks and masonry abutments.

3.12 Measuring weirs will be provided at the head of every tertiary unit, except for small offtakes supplyingwater to less than 20 ha. Primary and secondary canal measurementweirs will be provided downstream of most cross regulators.

3.13 Due to the intensive use of the existing canals for washing purposes, steps will be provided at approximately50 m intervals in village areas. Washing bays will also be provided for domestic buffalo to minimize bank damage. These bays cons:Lstof a 1:4 ramp entering the canal and a floor of masonry on the canal bed. They will be sited where buffalo now enter the canals and at locations suggested by local EJIS staff.

3.14 Many villages, partLcularlythose downstreamof irrigationunits, have constructeddiversion weLrs on drains to supplement,or replace, water received from the canal system. The majority of these weirs are undesirable as they cause flooding in the wet season, and in any case they will be unnecessary in a rehabilitatedsystem. However, several instancesexist - 29 -

where weirs do not cause flooding and these enable efficientreuse of water which would otherwise be wasted; repairs and modificationsto these weirs will be included in project works.

Upgrading for Efficient Operation and Maintenance

3.15 The scope of this subprojectwill be limited to the two irrigation districts of Mojokerto and Bondowoso in the Brantas and Pekalen Sampean Basins. These two districtshave benefitted from large irrigation rehabilitation programs (para. 2.12), and thus can be used as pilot districts for developing and implementingan appropriateO&M system to sustain full agricultural production. In the case of Mojokerto district rehabilitationis not f-ullycompleted. Intensive studies will be made of the results of past rehabilitatedschemes to both guide future rehabilitationand to derive improved cost-effectiveO&M systems. In particular,trade-offs between O&M and rehabilitation will be studied to determine the costs and benefits of the typical practice of deferred maintenance as opposed to intensive regular maintenance. The extent of irrigatedarea to be covered under this subproject will be limited to 140,000 ha for about 300 systems in the two districts.

3.16 The components of the subprojectwill consist of technicalassistance, staff training,O&M equipment,and civil works for upgradingthe irrigation systems. The technicalassistance will be provided by consultants (para. 4.07), whose major tasks will be the following:

(a) Design for minor upgrading of irrigation systems for more efficient operation.

(b) Review present proceduresand implementbetter ones for system operation at various levels, i.e.

(i) Review and improve the present system for forecastingwater availabilityin the Brantas River Basin. Based on this, develop a system for forecastingfloods and water allocation for the various irrigation areas.

(ii) Comprehensiveoperation plans for sections,subsections, and irrigation overseerswill be translated into Indonesian, and implemented.

(c) Maintenancemanuals for the different levels of system responsibility will be developed,delineating clearly their respective responsibilities. Prioritizationof preventivemaintenance activities under budgetary constraintswill also be studied and appropriateapproaches to be adopted will be indicatedafter pilot trials in the field over several seasons. Procedures for use of labor gangs and machinery for silt removal will be developedbased on data from previous studies.

(d) Simplify the reporting system from irrigationoverseers to higher levels. The consultantwill also design the telephonecommuni- cation system needed to minimize the time for efficient transmission of operationalinformation. - 30 -

(e) Recommend staffing and institutionalstrengthening measures for O&M (includingmanpower plans) within the context of the present GOI framework, and

(f) Estimate budgetary requirementsfor O&M, and long-run effects of under-budgetingof O&M.

3.17 Training will take two forms. Foreign training at various international water management courses organized by research institutions(e.g., IRRI) will be mainly for provincial,district and section staff, with courses lasting 3-6 months. Local courses lasting 10-14 days will be given for about 400 inspectors,overseers, and gate operators. This training will be mainly on irrigation system operation,maintenance and reporting requirements. The various O&M manuals developed under this subprojectwill form part of the training. Most of the local trainingwill be undertaken by the consultants and EJIS senior staff. Training materials will be prepared by the consultants.

3.18 The equipment for this subprojectconsists mainly of telephoneand radio communicationssets and lines, hydrometeorologicstations and gauges, vehicles, earth moving equipment for emergencymaintenance, and office, drafting and survey equipment. These are listed in detail in Annex 1, Table 14.

3.19 The civil works for upgradingwill be confined to improvementson the system attributableto design faults, i.e. resectioningof canals to improve flow efficiency and design changes in structures to prevent frequent failure. These would include extending aprons, inclusion of silt extruders, and reinforcingof bends to prevent bank failure. These faults have caused excessivemaintenance requirementsand cost, and inefficientoperation. In some cases vital components are missing (e.g., drains or even field channels or control structures)and these will be constructed. The civil works will average about US$50/ha over the entire area of 140,000 ha.

GroundwaterDevelopment

3.20 The groundwater subprojectis located in several areas throughout East Java identified both as watershort areas and having sufficientgroundwater resources to be exploited (Map 16037R). In most cases groundwaterwill be the only dry season supply. Developmentwould be concentratedin Madiun (6,750 ha), in the Kediri-Nganjukarea (3,600 ha), Tuban and Mojokerto (2,650 ha) giving a total area of 13,000 ha. The project area is part of 19,500 ha for which extensive survey and exploratorysurvey and drilling has been performed. The principal project works will be irrigationwells, equipped with pumps and engines, and upgraded or newly constructeddistribution system channels. Additional constructionwill include pump houses, access roads, stores and fuel storage facilities.

3.21 Wells. The project will include the drilling,development, testing, and equipping of about 240 production wells over a five-year period, and the drilling of about 140 exploratoryholes and about 125 test and observationwells. The distributionof the production wells will be as follows: - 31 -

Estimated Area No. of wells Command Area (ha)

Tuban-Mojokerto 65 2,650 Kediri-Nganuk 107 3,600 Madiun 68 6,750

Total Project 240 13,000

3.22 Well design will be standardized,with minor modifications depending upon local geologic conditions. Drilling will be by reverse or conventionalrotary methods with steel casings of diameter sufficient to accommodatethe pump and with appropriatewell screens opposite the p,ermeablewater-producing zones in the alluvial sediments. In areas of limestone aquifers, the lower casings and all screens will be omitted and t'hewells completed as open holes in the rock. The depth and yield of typical irrigationwells will necessarilyvary from one project area to another, as well as within one area. Typically,however, depths will be from 80 to 200 m with yields of from 30 to 90 1/s.

3.23 Pumps and Engines. Each productionwell, when completed, will be equipped with a water-lubricatedvertical turbine pump driven through a right-anglegear head by an air-cooled diesel engine. The capacities of the pumps are standardized at 30, 45, 60 and 90 l/s to simplify pump and spare part procurement and to permit interchangeability among wells. Some shallow wells in the Kediri area will be equipped with diesel driven centrifugal pumps of 30 l/s capacity.

3.24 If rural electrification becomes available to the project areas, the right-angle drive and diesel engine units can be removed (for use in other non-electrified development areas) and hollow-shaft electric motors substituted.

3.25 Distribution Channels. The extent to which new distribution channels are needed depends upon existing irrigation conditions. Most of the proposed development areas in the Madiun area lie within surface irrigation systems so that only upgrading of existing channels (including lining) is required. An exception would be the rainfed areas near Tanon where new systems of channels must be built. In both the Kediri-Nganjuk and other EaLst Java areas it will be necessary to build new systems and to line some existing distribution systems to prevent excessive water losses. Standard designs have been prepared for the channels, structures and lining. - 32 -

3.26 Pump Houses. Pump houses will be constructedat each production well to provide protection of equipmentagainst the weather, for short-term storage of diesel fuel and other supplies,and for the operator's use in record-keeping. The layout and design of the discharge channel at the pump house also allows for provision of additionalamenities for the villages including domestic water supp:Lyand bathing and laundry facilities.

3.27 Roads. Constructionof new access roads, or improvementof existing roads and structures,will be part of the project, to provide access for drilling rigs and equipmentduring initial constructionand for operation and maintenance in future years.

3.28 Workshop and Stores. The existing workshop and stores will be augmented and new facilities constructed. Each sub-area will have, as a minimum, facilities for minor repair of vehicles and diesel engines and a storehouse for spares. These will be located at Kediri and Madiun. The existing facilitiesat Surabaya are inadequateand a new store will be built on land owned by P2AT. The Madiun workshop will require installationof some new equipment. The Kediri workshop will be enlarged and would become the central repair and maintenance site for major work on drilling rigs and heavy equipment.

3.29 Small field storage depots for diesel fuel, each serving about eight production wells, will be built as part of the project. Each depot will have 10,000 liters of storage and would receive deliveries of oil by tanker truck. Operators at the wells would come to the depot by bullock cart periodicallyto fill the individual200 liter drums that are used for fuel storage at the pump houses.

3.30 Equipment and Materials. In line with establishedmodes of operation, P2AT would provide drilling contractorswith standardizeditems of equipment and materials, which will be procured under this project. Equip- ment to be procured would include the pumps and diesel engine drive units; spare pumps and engines as complete units as well as spare parts for drilling rigs, pumps, and diesel engines; and transport,mobile, hydrologic,and workshop equipment./1 Transport vehicles include four-wheeldrive station wagons and pick-up trucks, passenger cars, motorcycles,and bicycles. Mobile

/1 Pumpsets, well casings, screens and other like materials procured under the project will cater for 380 wells for total irrigatedarea of 19,500 ha. The GOI will, however, within the five-year implementation period of this project only implementabout 240 wells which will irrigate 13,000 ha. The other 140 wells, irrigatingan additional6,5000 ha, will be implementedbetween 1987/88 to 1988/89 using GOI funds. - 33 -

equipment includes flatbed trucks and truck cranes, trailer-mounted compressors, tanker trucks, truck winches, mobile shop vehicles, and minitractors. Hydrologic equipment includes water-level measuring lines and automatic recorders, water-analysis kits, sieve analysis equipment, test pumps, and electrical logging units. Workshop equipment includes such items as hoists, overhead cranes, lathes, milling machines, welding sets, grinders, drilling machines, compressors, engine test equipment, and miscellaneous machine and hand tools (Annex 1, Table 15).

3.31 Materials to be procured include mild black-steel well casings, galvanized wire-wound well screens, drill bits, and drilling fluid additives such as bentonite or polymer. Because of the time required to purchase such items as casings, screens, pumps, and engines, an initial procurement of US$3.0 million of items needed for the project's first year of operations will be completed in 1981-82 financed from Loan 1434-IND, which covered the Madiun pilot groundwater scheme (Annex 1, Tables 5 and 15).

Studies and Design

3.32 This subproject will include consulting services for future developments for:

(a) Parigi-Poso (Central Sulawesi). Detailed designs will be undertaken for irrigation systems to serve 21,000 ha at Parigi Poso; and a feasibility study for the development of an additional area of 8,000 ha and following review of the study by GOI and the Bank, detailed design;

(b) Kali Progo (Central Java). The collection and analysis of additional hydrologic data will be performed to study river flows in the Kali Serang; and the collection and analysis of hydrologic data for the proposed Sermo dam for establishing rainfall/runoff relationships and for performing reservoir operational studies;

(c) Polmas-Sidrap (South Sulawesi). Feasibility studies will be undertaken for the proposed Sadang (5,300 ha) pump irrigation scheme, and of the Lanrae (1,500 ha), Batubassi (2,000 ha), Maloso (7,500 ha) and Mambu (6,500 ha), gravity schemes. Subject to the findings of these studies, which will be reviewed by the Bank and GOI, detailed design will be performed. The feasibility studies will initially focus on hydrologic data analysis to determine water supply requirement for irrigation achieving a cropping intensity of at least 130% for rice production. - 34 -

Status of Planning and Design

3.33 Rehabilitationand Tertiaries. As described above (para. 3.07) planning and design of tertiary networks is well advanced due to funding under the national tertiary program. Designs, bills of quantities and cost estimates are available for tertiary structures in 160 tertiary units (12,000 ha) in the five districts, prepared by local consultants and checked by internationalconsultant advisors. Earthwork designs and quantity estimatesprepared under the Padat Karya program were found to be inaccurate,and the tertiary design effort will have to be redirected to include earthworks as these will increasinglybe executed under contract (para. 3.08b). This should not be difficult since earthworkswill follow the surveyed alignments determined for the structures. For rehabilitation of main systems, structure surveys of ten sample schemes (16,000 ha) and levelling surveys of six of those schemes (6,000 ha) had been completed by appraisal. This provided an excellent basis for appraisal cost estimates, as the sample schemes were representative(two in each district) of the entire project area and earthworks constitute only about 15% of total rehabilitationcosts. It however did not permit a large constructionprogram during the first year of imaplementation(1982-83). Funding for additional rehabilitationsurvey, design, and contract preparationof 15,000 ha of rehabilitationhas been provided from IrrigationProject XIV (Loan 1811-IND). GOI has agreed to ensure that tertiary designs for these schemes will be ready at that time. From the available designs, modest implementationtargets have been projected during the start-up year (5,000 ha construction)as described in Table 3.2.

3.34 Upgrading for Efficient Operation and Maintenance. Upgrading requirementsand some operation procedureshave been developedwith British assistance (para. 2.29) but have not been implementedwidely. Trial maintenance procedureswere also tested on a limited scale. They provide base data from which approved procedures can be developed and widely implemented.

3.35 GroundwaterDevelopment. Survey, exploratorydrilling, mapping of aquifers, and pilot developmentof tubewells is far advanced in the Madiun and Kediri-Nganjukareas (paras. 2.15-2.19),and production tubewellscan be developed immediatelyon the basis of existing standard specifications throughout a total net irrigatedarea of 14,900 ha. In the remainingareas, sufficient preparatorywork has been executed and analyzed to justify the initiation of a full-scale developmentprogram. In addition, estimated additionalunproved groundwaterpotential is sufficient to justify expanded exploratoryprograms under this project.

3.36 Studies and Design. Invitationsfor consulting services for all designs and studieswere prepared by GOI and reviewed by the Bank in July 1981. Invitationswere issued on October 16, 1981 and proposalswere being evaluated by GOI at the time of negotiations. - 35 -

Implementation Schedules

3.37 Implementation targets are proposed which are modest in terms of whtat has been achieved elsewhere in East Java in the same field (rehabilitation/tertiaries) by another project agency (PROSIDA), or no greater thlan schedules the same agency (P2AT) has achieved in groundwater development in the province (Chart No. 23416). Table 3.2 summarizes these target programs. The implementation program for the design and studies subproject is on Chart No. 23202.

Table 3.2: SUMMARY IMPLEMENTATION SCHEDULES

GOI FY 1982/83 1983/84 1984/85 1985/86 1986/87

Rehabilitation Program (completed areas in -000 ha) Main system design Annual 12 19 19 20 Cumulative 12 31 50 70

Tertiary system design Annual 10 15 15 20 Cumulative 10 25 40 60 /a

Construction Annual 5 10 15 20 Cumulative 5 15 30 50

Groundwater Development LE!gram (number of production wells installed) Miadiun area 12 20 5 15 16 Kediri-Nganjuk area 5 30 24 23 25 Other East Java areas 5 15 15 10 20

Total Annual 22 65 44 48 61 Total Cumulative 22 87 121 169 240

/a Tertiary systems designs for the balance of the main systems area are already completed. - 36 -

3.38 Many factors argue for the realism of these schedules. Both project agencies have fulfilled their implementationschedules in the past, P2AT in previous groundwateroperations in the province and EJIS in its work on ADB projects. For Madiun groundwaterdevelopment and the rehabilitationand OM programs consultantswho have long worked successfullywith the respective project agencies would be appointed to take advantage of their long local experience with the work required and capacity to mobilize immediatelyafter loan signing. Land acquisitionproblems in past irrigationprojects have chiefly involved excavation of large drains and river works; while tertiary constructionin both rehabilitationand groundwaterareas could be somewhat delayed by land acquisitionproblems, virtually no additionalland is required for rehabilitationof main systems or for groundwaterdevelopment in existing irrigation areas. Finally, procurementof equipment required for the first year of groundwateroperations is well underway: bids have been received and are being evaluatedby GOI (para. 3.31).

Cost Estimates

3.39 Total project costs are estimated at US$144.4 million (including $1.8 million for taxes) of which US$73.5 million (51%) would be foreign exchange. All project costs are expressed in end-1981 prices. For the rehabilitationand upgrading for efficientO&M subprojectsunit costs of civil works have been based on similar costs of rehabilitationprojects undertaken by GOI between 1979-81. Quantities of civil works for rehabilitationof main systems and tertiary constructionwere based on sample surveys performed by consultants(para. 3.33). The quantities and unit rates for the groundwater subprojectare based on the various pilot groundwaterschemes (paras. 2.16-2.19) and estimatesby P2AT. Estimated monthly basic costs of local and foreign consultantsare US$2,500 and US$12,500 respectivelyfor professionalstaff and US$1,000 for technicians and draftsmenwhich are derived from costs of recent contracts in Indonesia. A 10% allowance for physical contingenciesand an additional allowance for expected price increases,calculated on projected local cost inflationof 14% during 1982, 12% during 1983, and 10% during the followingyears and on foreign cost inflation of 8.5% in 1982, 7.5% in 1983 to 1985 and 6% in 1986, have been included in the project costs. Details of project costs are given in Annex 1, and are summarized in Table 3.3. - 37 -

Table 3.3: PROJECT COST SUMMARY

Local Foreign Total Local Foreign Total ---- Rp billion ------US$ million ----

Rtehabilitation subproject 14.9 9.5 24.4 23.8 15.3 39.1 operation and maintenance subproject 4.2 3.7 7.9 6.7 5.9 12.6 Groundwater subproject 8.1 19.0 27.1 12.9 30.4 43.3 Situdiesand Design 2.7 3.1 5.8 4.4 4.9 9.3

Base cost 29.9 35.3 65.2 47.8 56.5 104.3

Physical contingencies 3.0 3.5 6.5 4.8 5.6 10.4 Price contingencies 10.3 7.1 17.4 16.5 11.4 27.9

Project Costs 43.2 45.9 89.1 69.1 73.5 142.6

Taxes on civil works 1.1 - 1.1 1.8 - 1.8

Total Project Costs 64.3 45.9 90.2 70.9 73.5 144.4

Financing

3.40 Project costs will be financed by the Bank ($70 million), IFAD ($25 million) and the balance by GOI ($49.4 million) /1 through annual budget appropriations. The Bank loan would finance the foreign exchange costs of the project, adjusted downward by the following factors:

(a) government provision (through reserved procurement)of vehicles for the rehabilitationand O&M subprojects;and

(b) advance procurementof start-up materials for the groundwater subproject under IrrigationVIII Project (para. 3.31).

3.41 The portion of total project costs financed by the Bank loan has beaendetermined as follows:

/1 This figure includes$1.8 million taxes on civil works, $1.2 million reserve procurement,and $3.0 million for advance procurementof groundwatermaterials provided under Loan 1434-IND (Table 3.4). - 38 -

Table 3.4: PROJECT FINANCING

Foreign Total ----- US$ million…

Total Project Costs Excluding Taxes 73.5 142.6 Less: Vehicles 0.7 1.2 Start-up GroundwaterMaterials 2.6 3.0

Project Casts Financed 70.2 138.4

The proposed Bank loan of US$70 million would cover 50% of project costs excluding taxes. The breakdown of financing between the Bank, IFAD and GOI by categeoryof works excluding items under advanced or reserve procurement is as follows:

Bank IFAD GOI Total ------$ million ------

Civil works and drilling 15.7 15.7 31.8 63.4 Equipment and supplies 21.7 7.1 - 28.8 Consultants 27.7 - - 27.7 Training - 0.5 - 0.5 Administrationoverheads and miscellaneous - - 8.5 8.5 Unallocated 4.9 1.7 3.2 9.7

Total 70.0 25.0 43.4 138.4

Procurement

3.42 Civil Works. Civil works and drilling to be implementedunder the project (totallingUS$63.4 million includingcontingencies) will be widely dispersed, small in scale, and would require close interactionwith villagers both as beneficiariesand as laborers. They will be procured in small - 39 -

contract packages which would not be suitable for ICB, and will be tendered on the basis of competitive bidding advertised locally in accordance with GOI procurement procedures acceptable to the Bank.

3.43 Equipment and Materials. Excluding vehicles, equipment and materials worth about US$28.8 million (including contingencies) will be procured uinder the project, most of which is for the groundwater development program (Aknnex 1, Table 15). Specialized equipment, instruments and materials in- small lots or on an emergency basis, worth an aggregate total of less than US$1.5 million, will be procured through GOI procurement procedures acceptable to the Bank. All remaining equipment and materials will be procured under ICB. Local manufacturers will be granted a preference of 15% of the c.i.f. price of imported goods, or the customs duty, whichever is lower.

3.44 Review of Procurement. Civil works and equipment will be procured by the relevant DGWRD implementing agency using contract documents agreed with the Bank. An independent but internal control of all procurement is made by the DGWRD Secretariat, and larger contracts ($800,000 and above) must also be cleared by the State Secretariat Procurement Control Unit. These procurement controls appear to be working efficiently. The Bank has delegated its supervision responsibility to RSI, which works closely with DGWRD and the State Secretariat on procurement matters. For civil works contracts the Bank will review prior to tendering and award about thirty contracts ($19 million) each over US$320,000, covering in aggregate about 30% of the value of civil works. The other 100 civil works contracts will be procured using the GOI's procedures and will be reviewed prior to award by the above procurement control units, and by the Bank on a post award sample basis. Equipment contracts to be procured through ICB ($27.3 million) will be reviewed by the Bank prior to tendering and award; small contracts for local procurement (an aggregate of $1.5 million) will be funded wholly by GOI and follow the GOI's procurement procedures.

Disbursements

3.45 The Bank and IFAD loans will be jointly disbursed/l at the following rates against full documentation as follows:

(a) 40% of total expenditures for civil works for contracts worth about $320,000 equivalent and above for rehabilitation subproject; and

(b) 100% of foreign expenditures for directly imported equipment, 100% of local expenditures (ex-factory prices) for locally manu- factured equipment and 65% of locally procured off the shelf items.

11 At the ratios of 1:1 for civil works and 3:1 for equipment (Bank.IFAD). - 40 -

The Bank will disburse at the rate of 100% of total costs against consultant contracts.

3.46 Joint Bank and IFAD loan disbursements will be made against quarterly statements of expenditure /1 as follows:

(a) 40% of total expenditure for civil works contracts worth below $320,000 equivalent for the rehabilitation subproject; and

(b) 40% of total expenditures for civil works and drilling and installation for the groundwater subproject; and

In addition, quarterly statements of expenditures will be used to disburse 100% of total expenditures for training from the IFAD loan only.

The proposed allocation of loan proceeds is presented in Annex 1, Table 8. The disbursement profile has taken into consideration time overruns in Bank financed projects in Indonesia, and the disbursement schedule (Annex 1, Table 9) is projected over the six-year period from June 1982 to June 1988.

Accounts and Audits

3.47 EJIS and P2AT budget procedures as in other GOI line departments are tight though cumbersome. Accounts are kept in considerable detail though single entry bookkeeping is used and recording is frequently not on a cash basis. Accounts and records are kept under separate budget heads for each budget year. Although the above system of accounting is acceptable, it does have the following weaknesses:

(a) payments are recorded in the year of commitment; and

(b) cash books and accounts are not closed until the full budget is spent or unspent balances have been used.

3.48 The Bank has assisted PROSIDA and PIBD in establishing accounting systems. For these agencies, final accounts including balance sheets and consolidated receipts and expenditures statements are prepared at the year end to satisfy Bank requirements. Each accounting section is headed by a certified public accountant and the finance divisions are almost fully staffed. They report monthly on budget and financial status to the General Manager of each agency. Both finance divisions have internal audit sections responsible for visiting project sites quarterly and examining local accounting records. Accounts are subject to audit by State Auditors (Directorate General of State Financial Control). The State Auditors' short-form reports have so far analyzed income and costs, and checked that the costs have been properly incurred according to budget allocations. No long-form reports are prepared. Although the accounting and auditing system has provided reasonable financial control for Bank-supported projects,

/1 Annex 4. - 41 -

improvements are desirable in: (a) timeliness of annual accounts and audits; (b) systems of internal control, especialy for the reconciliation of assets with cumulative expenditures and procedures for writing off assets; and (c) state auditors should prepare long form reports following specific guidelines for each agency to be reviewed with the Bank. Despite the above shortcomings, in most Bank-supported projects satisfactory data have been obtained to ensure proper use of funds.

3.49 The Bank has no experience yet with EJIS, and little with P2AT. Accordingly, consultant accounting advisors will be engaged under the Irrigation XVI project to review with EJIS and P2AT the accounting systems to be introduced for the project and establish the content of audits to be carried out by the Director of State Audit. Assurances have been obtained at negotiations regarding maintenance of adequate accounts, independent auditing, and timely submission to the Bank of financial documentation for EJIS, P2AT, PROSIDA and PIBD (para. 6.01e).

Environmental Impact

3.50 Irrigated sawah is ecologically the most stable and non-erosive form of land use in Indonesia and the project will have a very positive environmental impact. The monitoring of aquifer levels (paras. 2.20-2.22) under the groundwater subproject will continue to be a key task of P2AT and its consultants, to ensure that groundwater resources are not overexploited in any tubewell area.

4. ORGANIZATION AND MANAGEMENT

Rehabilitation and Upgrading for Efficient O&M Subprojects

4.01 The EJIS will implement the rehabilitation and upgrading for O&M subprojects, in line with the responsibility of provincial level irrigation staff for O&M and national tertiary program operations and the goal of the GOI to gradually entrust large scale rehabilitation programs to the provincial irrigation services. The DOI will provide technical guidance and administrative support to EJIS and serve as the central government funding channel for loan and government funds, in keeping with established patterns of operations (para. 2.26) and GOIs requirement that a central government entity administer external assistance.

4.02 A project office will be formed in EJIS to execute the rehabilitation subproject. A project manager will be appointed to head this office, reporting directly to the Chief of the EJIS who will serve as project director. The project office will consist of three divisions, for design, construction, and administration, each of which would be headed by engineers who have held major responsibility for large projects. The design division will consist of three units responsible for survey, main system designs - 42 -

and tertiary designs, each unit comprising one senior engineer,one assistant engineer, and two or three technicians. As consultantswill be engaged to carry out detailed surveys, mapping, design and cost estimation (para. 4.06), the task of this comparativelysmaall design unit will primarily consist of planning, programmingof work, supervisionand verification. The construction division will be responsiblefor tendering and contract management,monitoring of constructionprogress, programming and budgeting, and mechanical engineering, with units for each of thesesfunctions staffed similarly to the design division. The administrationdivision, which will also handle administrative functions for the upgrading for efficientO&t siibproject,will comprise units for personnel,logistics, finance and progress reporting. Other routine administrativefunctions, including data acquisition,legal work as required for land acquisition,and internal auditing,will be performed by regular units of EJIS.

4.03 Effective implementationof the rehabilitationprogram will require full-time engineeringstaff at irrigation district level, based at Malang, Kediri, Jombang and Mojokerto, the latter office also covering Madura district. Functions at district level will include:

(a) assisting and supervisingconsultants in preparingcorrected base maps and inventories,carrying out canal and structure surveys, consulting with farmer groups on tertiary layouts and finalizing those layouts, preparingworking drawings and as- built drawings;and

(b) constructionsupervision and quantity surveys.

Required engineeringstaffing in the districts,which will be organized and directed by the respectivedistrict chiefs, is given in Annex 3, Table 1.

4.04 Annex 3, Table 2 shows the rather favorable relationshipbetween EJIS staff available for the rehabilitationsubproject over the first two years of project implementationand the maximum requirementsof that subproject. The main source of staff to the project will be EJIS staff returning from secondmentto large central agency project units elsewhere in East Java where the volume of work is now diminishing,e.g., Lodoyo and Pekalen- Sampean. In addition,15 engineerswill be recruited over the next two years. Neverthelessengineers capable of managing the project office divisions (para. 4.02) may not be available full time in the province and some senior posts may have to be filled initially by officers seconded from Jakarta or other provinces. Technician shortfall, though apparently large, should be easily made up through recruitmentwithin the province. Finally, the proposed work allocationwill require the posting of several highly qualified engineers to the districts. Assurances that necessary staff build up will take place have been obtained at negotiations(para. 6.01h). - 43 -

4.05 The project manager will be responsiblefor execution of the upgrading for efficientO&M subproject,but the existing EJIS O&M section is sufficientlylarge to serve as the implementingunit at provincial level. The irrigation district offices at Mojokerto and Bondowoso will serve as the field offices. The chief of the O&M section will serve as subprojectmanager, reporting to the project manager and project director.

Consultant Services for Rehabilitationand Upgrading for Efficient 0&M Subprojects

4.06 To mount for the first time a major irrigation rehabilitation effort in the project districts, while simultaneouslybuilding up local staff and consultant capabilityand maintainingtechnical standards, a substantial input of internationaland local consultant services is necessary to assist EJIS. Local consultant inputs will be provided by firms based in East Java Province. It is part of GOI's long-term manpower strategy to enhance provincial consultant capabilitywhich could thereafter be relied on for such functions as survey and design, rather than attempting to establish large specializedunits in each government agency. While consultant usage under the O&M subprojectwould be chiefly of a straightforwardassistance nature, for rehabilitationa more complex arrangementis required. Annex 3, Table 3 details the functionalresponsibilities of EJIS and local and international consultants.

4.07 GOI has selected consultantswhich have assisted both EJIS and P2AT in East Java operationsfor many years to provide consultantassistance (jointlywith local consultants)for both the rehabilitationand the O&M subprojects. This arrangementwill ensure the maximum emphasis on upgrading of EJIS and East Java engineeringfirms, technical continuity,and coordination of efforts and results between these closely related activities. Planned consultant inputs are summarizedin Table 4.1, and combined consultant terms-of-referencefor the two subprojectsare available in the project file (Alnnex5, Reference D).

Table 4.1: CONSULTANT INPUTS FOR REHABILITATIONAND UPGRADING FOR EFFICIENTO&M

International ---- Local Consultants----- consultant Professional Technicians ------man months ------

(a) Team leader 48 (b) Rehabilitation 180 794 1,588 (c) O&M 128 50 150 (d) Unallocatedand home office support 20

Total 376 844 1,738 - 44 -

GroundwaterDevelopment Subproject

4.08 The role of P2AT in implementinggroundwater activities is rather unique, in that professionaland skilled labor staff of the agency actually participate in drilling operations in conjunctionwith the contractors,P2AT maintains its own large drilling rigs and materials stores which are provided to contractorsas part of contract packages, and P2AT staff have operated all production wells drilled thus far. The successes so far achieved in this relatively new field of Indonesian irrigationdevelopment have derived from the establishmentof two effectiveproject offices, in Madiun and Surabaya, the latter covering the Kediri-Nganjukand East Java components and a Madura operation for which British aid is committed. Each of these offices will continue to be headed by a project manager responsiblefor the respective groundwatercomponents. The groundwatersubproject will utilize this successful organizationpattern and staff, requiring only minor increases in staff to reach full project levels given in Annex 3, Table 4.

Consultant Services for GroundwaterDevelopment

4.09 Internationalconsultants have played an important role in providing technicalsupport, unavailablein Indonesia, for the groundwater developmentprogram. Under thLeproject the Madiun and Surabaya P2AT project offices will continue to select and utilize the internationalconsulting firms which best suit their needs. At GOI request local consultantswill also be engaged both to assist in routine engineeringfunctions and to benefit from the transfer of groundwater technologyfrom the internationalconsultants, whose presence will gradually decline over the life of the project. Terms-of-referencefor foreign and local consultantsare available in the project file (Annex 5, Reference E). Consultancyinputs for the groundwater subproject are given in Table 4.2.

Table 4.2: CONSULTANT INPUTS FOR GROUNDWATERDEVELOPMENT

International ---- Local Consultants ------consultant Professional Technicians ------man months ------

East Java and Kediri-Nganjuk 180 90 170 components Madiun component 135 80 160

Total 315 170 330 - 45 -

Operation and Maintenanceof Tubewells

4.10 The operationand maintenanceof surface irrigationsystems, such as those to be rehabilitatedand upgraded under the project, is hampered to varying degrees by deficienciesin funding and staff organizationand discipline,difficulties in coordinationwith large numbers of farmers, and lack of technicalknowledge at field level. The upgrading for O&M subproject has been developed to provide solutions to these and other problems which would be applicable to surface schemes throughoutEast Java. Nevertheless, O&M of tubewells is a more crucial matter than for surface irrigation for many reasons, including the following:

(a) Surface gravity schemes can deliver water (though less than optimally) and endure for decades with little or no official O&M, as evidencedby the high standards of rice production even in nonrehabilitatedschemes in Java. Without a high standard of O&M a tubewell could rapidly become inoperative;

(b) Basic O&M in surface systems is not a technicallycomplex matter; organization,funding, and human muscle can accomplishmuch of what needs to be done. Tubewell O&M involves large diesel engines and pumps which untrained people cannot maintain or repair; and

(c) Groundwater developmentinvolves a lower capital cost per ha than surface gravity irrigation,which would require constructionof storage dams to match the all-seasoncapability of tubewells. On the other hand, recurrent costs per ha are much higher for groundwater, which requires continuing financialsupport. For example, the recurrent operating (largely fuel) costs of the 240 production wells to be drilled under this subprojectwill average about US$2.2 million (economic costs, 1981 constant currency values) in 1990. Replacementof pumps and engines will average a further US$0.71 million annually,while operating overheadsare estimated at $0.22 million annually.

4.11 At the present time, in both the Kediri and Madiun areas, all maintenanceof wells, pumps and engines is performed by P2AT personnelwith the exception of the daily checking,and replenishmentas necessary, of engine f-ueland lubricants. Each well is visited by a mechanic from the area's central workshop after approximatelyevery 250 hours of operationduring the dlryseason; at that time routine inspectionand minor maintenance is performed as required. When emergencyminor repairs are needed, the pump operator notifies the workshop and a mechanic with tools and parts is dispatchedwithin hours. Major repairs and general engine or pump overhauls are performed in the central workshop. - 46 -

4.12 Water Users Associations. Before well installationwater user groups /1 are formed, composed of all farmers within the proposed command area. These groups build where possible on traditionalwater user groups. The command area is then divided into blocks, each block receivingwater on a specifiedday. In Kediri-Nganjukthe pump operator, employed by the water users' group, is responsiblefor water distribution,and purchases fuel only when sufficient funds are collected by the water user group. This system would be applied project-wide,as farmers in each area become convincedof the value of irrigationwater supplied on demand.

4.13 For this project, P2AT will continue to be responsible for the initial maintenanceresponsibilities, with a goal of transferringthose tasks to the EJIS within about four years. A few supervisoryshop personnel (at grade of foreman or superintendent)from the EJIS will be assigned to each of the area workshops to be trained by staff of the consultantsand P2AT in methods and procedures. Near the end of the project, in possibly the fourth year, the basic workshop personnel (mechanics,etc.) will be transferredfrom P2AT to the EJIS to form a tubewellmaintenance section within that service. In the last year or two of the lproject,P2AT maintenance staff will consist of a small number of supervisorypeople with the responsibilityof seeing that newly equipped wells were properly taken care of.

4.14 Daily operation of each well will continue to be by local operators selected and paid by the water-user organizations. Each operator will receive an initial training by P2AT. The responsibilityof the operator or water-user group will be limited to daily checking and replenishmentof fuel and lubricants,with the area workshop responsiblefor all other maintenance and repairs. It is not considered technicallyfeasible to expect water user groups to assume responsibilityfor maintenance of and repairs to these comparativelysophisticated pump units.

Studies and Design

4.15 Foreign and local consultantswill assist PROSIDA and PIBD in carrying out detailed designs of systems at Parigi Poso; investigations at Kali Progo; and feasibilitystudies and designs of Polmas-Sidrap'ssystems. Estimated schedulesfor consultantassignments and cost breakdownsare detailed in Annex 1, Table 13, summarized in Table 4.3 and illustratedin Chart 23202.

/1 In India, Pakistan, the U.S., and other areas, private ownership of tubewells provides strong incentives for economic use and careful maintenance of tubewells. However, the extremely small size of East Java's farms makes communal usage a necessity. - 47 -

Table 4.3: CONSULTANTINPUTS FOR STUDIES AND DESIGN FOR FUTURE PROJECTS

Local International consultants consultants professional Technicians ------(man-months)------

1. Parigi Poso 243 695 844 2. Kali Progo 9 40 - 3. Polmas Sidrap 66 156 165

Total 318 891 1,009

Monitoringand Evaluation

4.16 The impact of rehabilitation,upgrading for O&M, and groundwater investmentson productionwill be monitored semi-annuallyfor each subproject area by agriculturalextension staff attached to each Kabupaten (district). Officers will collect sufficient detailed data on cropped areas and yields for rice and secondarycrops to be correlated to the areas improved. Provincialirrigation staff will keep detailed records of water supplied within each system improved. For groundwater,P2AT staff and water user associationswill keep records of pumping times and quantitiesof water supplied. Coordinationof these benefit monitoring and evaluation activities will be the responsibilityof the Evaluation Section, Directorate of Planning and Programming,which is being strengthenedwith Bank assistance (Cr. 995-IND).

5. AGRICULTURALPRODUCTION, ECONOMIC JUSTIFICATIONAND RISKS

General

5.01 The agriculturalimpact of both the rehabilitationand the groundwater subprojectsis overwhelminglyan increase in rice production. In the case of rehabilitation,this increase is substantiallyat the expense of subsistenceproduction of polowijo crops (chieflymaize and cassava), as a constant abstractionof river water is applied more equitably and efficiently to permit an upgrading of crops. In the case of groundwater,additional water supplies provided by the tubewellswould generally permit the introduction of a second rice crop between the wet season rice and the dry season polowijo. In either case, increasedrice production is the benefit, in keeping with the preferencesand needs of the farmers, Indonesianconsumers, the provincialand central governments,and economic rationality. - 48 -

5.02 Economic and financialprices for major agriculturalinputs and outputs are presented in Annex 2, Tables 1-2. Financial prices differ rather widely from economic prices, particularlyfor rice, where the economic price is nearly twice the farm-gate price, and for fertilizer,where economic prices are nearly three times the subsidized farm level price. Despite the fact that the implicit taxation of paddy sales amounts to over eight times the subsidizationof input purchases,/lfew Indonesian farmers are diverted away from their natural predilectionto plant rice by Government'scontrol of the rice price (which is a politically crucial parameter in the urban areas).

5.03 Aside from lags in raising the government controlled market price for paddy, the intensity of GOI's efforts in support of rice production, across the spectrum of research, extension, credit, and marketing can be matched by few developing courntries.These efforts are being assisted by Bank Group support under two agriculturalresearch projects, two agricultural extension projects, two seeds projects, and an ongoing and proposed fertilizer distributionproject,/2 but in all cases the impetus for and emphasis on these and other programs (such as subsidies for fertilizer and sawah formation) supporting expanded rice production derive from the GOI itself. Partly as a result, rice yields, husbandry, and cropping intensityon Java, and part-±^u- larly in East Java, are higher than in other large regions in the developing world. At field level the major operative constraint is thus the supply and distributionof water, and thLs project is aimed at alleviating that constraint.

5.04 There is a wealth of experience in both ex ante and ex post evaluation of the economic returns from rehabilitationand upgrading of irrigation systems in Java, beginning with the first Bank Group supported project in Indonesia (IrrigationI, Credit 127-IND) and including Irrigation IV (Credit 289-IND) which covered much of the rehabilitationof the Pekalen-Sampean region of East Java. Project completion reports (para. 1.15) have re-estimated economic rates of return for individualrehabilitation subprojects ranging from 37% to 64%. The Project PerformanceAudit Report for Irrigation I stringentlyrevised PCR analytical assumptionsby largely eliminating improved wet-season paddy yields as a benefit attributableto rehabilitation; the rates of return still averaged 30%. Rather than present another economic analysis based on gross project areas for this subproject,the analysis of the

/1 Annex 2, Table 3 indicates that at present the implicit taxation of wet season paddy through government control of prices amounts to about US$547/ha or about US$160/ton,as opposed to net input subsidiesof Rp 42,000/ha (US$67/ha) or Rp 12,000/ton (US$19/ton).

/2 These programs are fully described in the SARs for these projects, Report Nos. 646a,2805, 1105a, 2711a, PA-85A, 3121, and 3609-IND respectively,and in agriculturalsector reports on support services (2060a-IND)and prospects (2374-IND)for food crop production. - 49

combined effects of rehabilitationand tertiary constructiongiven below (paras. 5.09-5.14) is based on a more detailed review of a single representative scheme, in which all benefits are conservativelyassumed to derive from a change in cropping patterns during a single dry season crop due to improved water distribution. The analysis of the groundwatersubproject is based on projectionsof total subprojectinputs and outputs.

GroundwaterSubproject

5.05 The main benefit of the groundwatersubproject will be the inclusion of a second rice crop in the tubewell areas as a direct result of increased dry season water supplies. Yield increasesare projected,particularly for paddy where yields are expected to rise about 0.5 tons/ha in the wet season and one ton/ha in the dry season chiefly due to increasedquantity and control of water supplies and earlier planting of the wet season paddy crop. Polowijo (maize, soybeans,groundnuts) crop yields are anticipatedto increase only modestly in absolute terms, with about half of the anticipatedincrease due to increased reliabilityof water supplies and the remainder to nonproject factors such as increaseduse of inputs,better cultivationpractices, and improved varieties. Annex 2, Table 3 presents crop budgets showing detailed assumptionson input usage and yields, and derives net economic and financial production benefits from the various crops. Annex 2, Table 4 integrates these data with the intensificationof cropping patterns expected under the project (and observed in establishedpilot projects)to generate net revenue increases per ha and per farm on an annual basis.

5.06 Assumptions regardingbenefit buildup are as follows: No benefits will be obtained in the year of well installation;in the second and third years benefits from increasedyields and cropping intensitieswill be half of full potential;and full developmentwill occur in the fourth year and thereafter. Thus the expected annual production increasesgiven in Table 5.1 below would be achieved by the eighth year of the project, or about 1990. - 50 -

Table 5.1: EXPECTED ANNUAL PRODUCTIONINCREASES FROM GROUNDWATERDEVELOPMENT

Production Production Increasednet value without with Increased of production prolect project production Financial Economic ------… (000 tons)------(1981 US$ million)--

Rice 55.6 104.0 48.4 4.06 14.57 Soybeans 5.2 8.9 3.7 1.30 1.30 Maize 3.6 4.1 0.5 0.09 0.70 Groundnuts 1.2 1.3 0.1 0.06 0.06

Total 5.51 16.63

Minus operating and replacementcosts 0.80 3.0

Total 4.71 13.63

5.07 Economic Rate of Return. Groundwater subproject costs and benefits are summarized in Annex 2, Table 5. Costs are derived in part from tubewell unit developmentcosts given in Annex 1, Table 11 and procurement schedules given in Table 15. The resulting economic rate of return of the entire subproject is 24%. That of the Madiun component is 28%, of Kediri-Nganjuk20%, and of East Java 20%. The calculatedERR is lower for East Java because further exploratorywork will add to costs over this first phase. That for Madiun is highierbecause the implementationschedule is faster, and investmentand operating costs are lower per unit area, given the larger command areas which are feasible there. However, more remains to be done to improve the current water management program in Madiun than in Kediri-Nganjuk,where water users associationsare clearly an effective organization.

5.08 SensitivityAnalysis. The viability of the subproject is most sensitive to reductions in expected agriculturalbenefits, less so to delays in achieving full benefits, and least sensitive to cost overruns. The success of the project depends on the ability to deliver sufficient,reliable water to grow a second rice crop. If expected increasedrice production is reduced by 50%, the ERR will fall to 14%. Full benefits from groundwater developmentare expected to be realized four years after well installation. If benefits are delayed until the sixth year, and there are no benefits in the first two, the ERR will fall to 16%. The project is less sensitive, however, to increases in capital costs. If these rise 50% above estimates, the ERR will only fall to 17%. - 51 -

RehabilitationSubproject

5.09 As numerous irrigationrehabilitation and distributionprograms in Java have been analyzed before and after development,with the uniform result of extremely high calculated economic rates of return, the analysis for this subproject focusses on a more detailed projection of how those benefits may occur, in relation to better distributionof a constant supply of water at the field level. For this purpose a single proposed scheme was selected, the Tanggul scheme in Kasri section, Malang district. Cost estimates for this sc:hemeare based on both levelling and structuresurveys and detailed costing executed during the feasibilitystudy./l Water usage by various units in the scheme was estimated by the consultantswho supervised survey and design, and who had extensive field experience (including frequent discussionswith the local irrigation inspector,overseer, and village officials) in the service area during previous pilot O&M operations. Present cropping patterns were estimatedby the consultantsand confirmed during field visits.

5.10 The Tanggul scheme is in relatively steep terrain characteristicof about 80% of the schemes under consideration. It is below average in size (687 ha), but is representativeof a typical secondarycanal block in larger schemes. The present rice cropping intensities(93% in the wet season, 31% in the early dry season) and yields (4.0 tons/ha) are quite typical of unrehabilitated schemes in the subprojectdistricts, as is the dry season planting of polowijo. The small area devoted to sugarcane (1%) does vary from six sections in the Brantas basin where location and climate are suitable for cane and between 8% and 18% of the technicalirrigation areas are typicallyplanted to sugar; it is however typical of seven sections in that basin and all of Madura, where sugarcanehectarage varies between zero and 4% of the irrigation area.

5.11 The physical condition of irrigationworks is fairly typical of the unrehabilitatedstate: while canals are not extremely heavily silted, control structuresare badly deteriorated,one entire secondarycanal reach has collapsed,there are few tertiaries or quaternaries,and there are few operativegates. In sum, water control and distributionby the irrigation overseer and village officials is only partial, and there is excessivewaste of water in the upper tertiary blocks and in the higher and smaller quaternary blocks within the tertiary blocks./2 In the absence of rehabilitation continued siltation,deterioration of control structuresand gates, and

/1 Annex 5, ReferenceA, Vol. 2, p. 4.10 and 4.31-4.33.

/2 Both inequity and two forms of inefficiencyin water allocationare involved here. Excess water in higher blocks can be used more efficiently, both within those blocks with better distributionchannels and in less favored blocks with operable control structuresand rebuilt canals (see Annex 2, Table 7). - 52 - erosion and collapse of canal banks are projected to lead to a loss of full dry season irrigation service to an additional 75 ha (11% of the service area) within 5-10 years, and a consequent shift of those blocks from dry season paddy to irrigatedpolowijo, which requires much less water./l Erosion behind the main headworks structure is likely to lead to its collapse within ten years, but even with the limited funds available to it the EJIS would be likely to respond to such an emergency in time and reinforce the structure, if necessary with routine O&M funds.

5.12 As a sensitivitytest of the frequently reported high economic returns from rehabilitation,it was decided to account as project benefits only a change in cropping pattern during the early dry season, which generally occurs between about April 15 and August 15. This change in cropping pattern is detailed by irrigationblock in Annex 2, Table 7, and is summarized in Table 5.2 below.

Table 5.2: PROJECTED CHANGES IN CROPPING PATTERN, EARLY DRY SEASON, TANGGnL SCHEME

Land use category Irrigated Irrigated Polowijo Rainfed Polowijo paddy Soybeans Maize Cassava Maize Total …______------…(ha)…------______

Present 215 139 139 97 97 687

With Project 278 205 204 - - 687

Without Project 140 177 176 97 97 687

Increment +138 +28 +28 -97 -97

Yield (tons/ha) 4.0 0.9 1.7 6.0 1.2

IncrementalPro- duction (tons) +552 +25 +48 -582 -116 (-68 net)

/1 To maintain even the present level of service the EJIS has spent about US$40,000 per year (in 1981 US$) in recent years on repairs to the Tanggul scheme, or about 16% of the costs of main system rehabilitation. - 53 -

The with project cropping pattern does not assume optimal water distribution at full development, merely a feasible improvement over the without project case. This improvement would entail reducing field wastage of diverted water from 50% in the without project case (39% at present) to 19%, with better situated blocks still claiming disproportionate volumes of water.

5.13 The main benefit in this analysis is obviously an increase in paddy cropping in the dry season of 138 ha (20% of the technically irrigated area) over the without project case, or 63 ha above present paddy cropping. The increased rice cropping would replace currently partially irrigated palowiJo, while currently rainfed polowijo areas would receive enough irrigation water (particularly in the early months of the dry season) to establish higher value and higher yielding polowijo crops. Restricting benefit estimation in this way ignores the following additional potential benefits of rehabilitating and upgrading the Tanggul system:

(a) increased paddy yields in both the wet and dry seasons, due to more rapid and efficient distribution of water;

(b) further increases in rice cropping intensity in the early dry season due to earlier planting and harvesting of wet season paddy and consequent use of March/April rainfall for presaturation, and the ability to divert more water should a study of Tanggul River prove this feasible; and

(c) additional planting of a second dry season polowijo crop (August 15 - November 15) beyond the 57 ha currently cropped, based on residual moisture in some areas irrigated in the early dry season.

Thus this analysis presents a minimum, bound to the actual benefits of main system rehabilitation and tertiary construction in Tanggul.

5.14 Net benefits at full development are calculated in Annex 2, Table 8, and phasing of benefits and costs is indicated in Annex 2, Table 9. Based on the restrictive assumptions outlined above, the economic rate of return of proposed project works in Tanggul would be 25%. The result is in line with previous analyses which eliminated any economic benefits subject to reasonable dispute.

Farm Incomes and Cost Recovery

5.15 The current Bank estimate of the absolute poverty line for rural aLreas in Indonesia is US$112 per capita per annum while the relative poverty line is estimated slightly lower at US$98. As Annex 2, Tables 10-11 demonstrate, the overwhelming majority of potential beneficiaries of the rehabilitation and groundwater subprojects live on incomes far below both poverty lines. In the.groundwater areas per capita incomes average about US$58. In the representative rehabilitation scheme (Tanggul) only the poorer classes of farmers are likely to benefit from the project, which would - 54 -

redistributefixed water supplies in their favor; the weighted average per capita income of those likely to benefit is US$71. At full project development (1990) per capita incomes in the groundwaterareas are projected to reach about US$135, with most of this increase due to the project, while the weighted average income of beneficiariesin the rehabilitatedscheme would rise only 21% to $86./1 Over this period the absolute poverty line can be expected to rise with living standards at a minimum of 2% per annum, to at least US$134 in 1990. From the point of view of equity the level of cost recovery is consideredreasonable.

5.16 NeverthelessIndonesian farmers do pay land taxes related to the level of irrigation service and payments to their village watermasters (ulu-ulu)who are responsiblefor tertiary network operation and maintenance. Project beneficiariesare anticiLpatedto increase these payments by an average of over US$12/ha with project development,and in addition groundwater beneficiarieswill gradually pay all financial fuel and operator costs of the tubewells,averaging US$45/ha al:full development. These payments (discounted with all investmentand O&M cosl:sat 10%) would achieve cost recovery indices of 11% and 20%, and rent (benef:Lt)recovery indices of 23% and 29% respectivelyfor the rehabilitationand groundwater subprojects.

5.17 Beneficiarieswill be taxed much more heavily than this in an indi- rect way, as they are anticipatedto sell about 50% of their incrementalrice output to Governmentprocuremenit agencies at prices far below world market levels (para. 5.02). This will result in direct financial savings to GOI from import substitutionof US$6.0 million per annum at full development,the discounted present value of which (US$33 million) is equal to about 37% of project base costs and physical contingencies.

Risks

5.18 The viabilityof the groundwatersubproject is most sensitive to reductions in expected agriculturalbenefits, less so to delays in achieving full benefits, and least sensitive to cost overruns. The success of the project depends on the ability to deliver sufficient,reliable water to grow a second rice crop. If expected increased rice production is reduced by 50%, the ERR will fall to 14%. Full benefits from groundwaterdevelopment are expected to be realized four years after well installation. If benefits are delayed until the sixth year, and there are no benefits in the first two, the ERR will fall to 16%. The project is less sensitive,however, to increasesin capital costs. If these rise 50% above estimates, the ERR will only fall to 17%.

/1 About half the benefits of rehabilitationderive from preventionof deteriorationof irrigation service and cropping intensity, and the remainder from improvementsin service (Annex 2, Tables 7-8). - 55 -

5.19 The rehabilitation component has little risk. The projected economic analysis is based exclusively on a small shift from polowijo to irrigated rice cultivation in the early dry season due to better distribution of fixed water supplies. It totally ignores potential increases in paddy yields, or improvements in cropping intensities in the wet season, and thus may be considered a minimum estimate of returns from rehabilitation.

6. AGREEMENTS AND RECOMMENDATIONS

6.01 During negotiations, agreement was reached with GOI on the following:

(a) GOI will employ consultants for the following subprojects by the dates below:

Contract Latest Date

Rehabilitation, O&M and East Java/ August 1, 1982 Kediri-Nganjuk Groundwater Madiun Groundwater February 1, 1983 Studies and Designs August 1, 1982

The qualifications, experience and terms and conditions of employment of consultants would be satisfactory to the Bank, and in accordance with principles and procedures of the "Guidelines on the Use of Consultants by World Bank Borrowers and the World Bank as Executing Agency," published by the Bank in August 1981. (Draft Loan Agreement, Section 4.02).

(b) GOI will ensure that sufficient liquid funds would be made available to EJIS, P2AT, PROSIDA, and PIBD for the Project not later than May 1 of each year for the ensuing GOI fiscal year to cover budgeted expenditures for the project. (Draft Loan Agreement, Section 4 .01(c)).

(c) GOI will provide adequate funds for and take action as necessary to acquire in the year proceding construction all land and rights in respect of land required for construction and operation of the facilities included in the project and in all other Bank-supported irrigation projects. (Draft Loan Agreement, Section 4.05). - 56 -

(d) GOI will:

(i) Cause all facilitiesrehabilitated or constructedunder the project to be adequately operated and maintained,and would ensure the efficiLentuse of the water made available for agriculturaldevelopment and operations. (Draft Loan Agree- ment, Section 5.04(a));

(ii) by August 15 in esachfiscal year provide liquid funds equal to not less than half the amount budgetted for operationand maintenance during the FY and the balance in equal quarterly installments(Draft Loan Agreement, Section 5.04(b));

(iii) progressivelyincrease the number of qualified operation and maintenance staff until adequate staff levels, as established in consultationwith the Bank, have been attained (Draft Loan Agreement, Section 5.04(b));and

(iv) inform the Bank by May 1 of each year, of the approved budgets for O&M of irrigation system; and by October 1, of the staff provisionsmade. (Draft Loan Agreement, Section 5.04(c)).

(e) EJIS, P2AT, PROSIDA and PIBD will:

(i) maintain records adequate to reflect operations,resources and expendituresin respect of each part of the Project including separate accounts and records for statementsof expenditure,and maintain such records until at least one year after the closing date (Draft Loan Agreement, Section 5.02);

(ii) have such accounts and financial statements,for each fiscal year, and statementsof expenditureaudited by independentauditors acceptable to the Bank (Draft Loan Agreement, Section 5.03(a));and

(iii) furnish to the Bank not later than nine months after the end of each fiscal year: (a) certified copies of its financial stateiments;and (bO audit reports of such scope and in such detail as the Bank shall have reasonably requested. (Draft Loan Agreement, Sections 5.03(b) and (c)).

(f) GOI will:

(i) before the design phase for the constructionof any tertiary network, ensure that water-user associations partici,patein the planning of such tertiary networks; and - 57 -

(ii) during the design phase of any tertiary networks, the GOI will exchange views with said water-userassociations in order to ensure that the members agree to the objectivesand operational proceduresof the tertiary network and thereafter operate and maintain the networks. (Draft Loan Agreement, Section 5.05).

(g) GOI will:

(i) comprehensivelyconsider the duties and responsibilities of the extension services of the Ministry of Agriculture, the Ministry of Home Affairs and its local administration, DGWRD's Provincial IrrigationServices and any other agency or agencies involved or concerned, for establishing, training and assistingwater-user associations,in order to improve the operationand maintenanceof tertiary systems for which water-userassociations are responsible;

(ii) not later than July 1, 1983, or such other date as the Bank may agree, furnish to the Bank and the IFAD, for comments, the findings and recommendationsthereby obtained;and

(iii) promptly thereafter,cause the agency or agencies selected on the basis of such review, to undertake the training and support of the water-userassociations taken into account the comments made by the Bank and the IFAD. (Draft Loan Agreement, Section 5.06).

(h) GOI will:

(i) cause EJIS to develop and adopt, not later than April 30, 1983, a detailed rehabilitationconstruction program based on a priority evaluationsystem acceptable to the Bank, and a manual of major technical design standardsfor reha- bilitationacceptable to the Bank (Draft Loan Agreement, Section 5.07); and

(ii) cause EJIS to employ, not later than March 31, 1983, and thereaftermaintain, at least 41 engineers for implementation of the project. (Draft Loan Agreement, Section 5.08).

6.02 With the above assurances,the project would be suitable for a Bank Loan of $70 million, with a 20-year maturity, includinga grace period of 5 years. The Borrower would be the Republic of Indonesia. * 58 -

6.03 Conditions of Loan Effectivenesswould be that:

(a) the IFAD Loan Agreement:has been duly authorized or ratified by governmentalaction andlother conditions for effectivenessof the IFAD Loan pursuant to the IFAD Loan Agreement have been duly fulfilled; and the IFAI)has appointed the Bank as Cooperating Institutionto administer the IFAD Loan on terms and conditions acceptable to the Bank (Draft Loan Agreement Section 7.01(a));and

(b) the consultant contract for the rehabilitationand O&M subprojects (EJIS) has been negotiated and approved. (Draft Loan Agreement Section 7.01(b).) ANNEX 1 - 59 - Table 1

INDONESIA

SEVENTEENTH IRRIGATION PROJECT

EAST JAVA PROVINCE

Cost Estimates (US$ million)

Local Foreign currency currency Total

Rehabilitation Subproject Civil works 17.17 9.69 26.86 Equipment and supplies 0.39 2.32 2.71 Consultants 3.65 2.88 6.53 Mapping 0.14 0.26 0.40 Building and offices 0.20 0.15 0.35 Administration 1.90 - 1.90 Land acquisition 0.35 - 0.35

Subtotal 23.80 15.30 39.10

Upgrading for efficient O&M Subproject Civil works 4.95 2.47 7.42 Equipment and supplies 0.24 1.69 1.93 Consultants 0.51 1,51 2.02 Training 0.08 0.14 0.22 Buildings/offices 0.16 0.07 0.23 Administration 0.63 - 0.63 Land acquisition 0.10 - 0.10

Subtotal 6.67 5.88 12.55

Groundwater Subproject Civil works 3.73 3.75 7.48 Drilling and installation 1.70 2.56 4.26 Materials and equipment 3.60 20.42 24.02 Consultants 1.32 3.42 4.74 Training - 0.25 0.25 Administration 2.56 - 2.56

Subtotal 12.91 30.40 43.31

Studies and Design Subproject Parigi Poso design and study 3.26 3.55 6.81 Kali Progo study 0.04 0.15 0.19 Polmas Sidrap study 0.72 1.18 1.90 Administration 0.40 - 0.40

Subtotal 4.42 4.88 9.30

Total Base Cost 47.80 56.46 104.26

Physical contingency 4.79 5.60 10.39 Price contingency 16.51 11.44 27.95

Grand Total (excluding taxes) 69.10 73.50 142.60

Grand Total (including taxes) 70.94 73.50 144.44 - 60 - ANNEX 1 Table 2 Page 1 of 4 INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Detailed Cost Estimates

Foreign Base Local Foreign Total exchange cost ---- (US$ million) ---- (x) (x)

Rehabilitation A. Civil Work Canals - Earthworks 1.32 0.88 2.20 40 - Lining 1.96 1.96 3.92 50 - Structural repairs 2.24 0.75 2.99 25 - New structures of replacements 4.89 3.00 7.89 38

Drainage - Earthworks and structures 0.53 0.43 0.96 45

Tertiary/on farms - Canals, drains and structures 6.23 2.67 8.90 30

Subtotal 17.17 9.69 26.86 36 68

B. Equipment & Supplies - Vehicles 0.30 0.40 0.70 60 - O&M 0.09 1.69 1.78 95 - Office - 0.07 0.07 100 - Survey - 0.16 0.16 100

Subtotal 0.39 2.32 2.71 85 7

C. Consultants - Foreign 0.44 2.52 2.96 85 - Local 3.21 0.36 3.57 10

Subtotal 3.65 2.88 6.53 42 17

D. Mapping 0.14 0.26 0.40 65 1

E. Buildings/offices - Workshop/garage 0.06 0.04 0.10 33 - Stores 0.04 0.01 0.05 33 - Offices/housing 0.10 0.10 0.20 33

Subtotal 0.20 0.15 0.35 33 1

F. Administration 1.90 - 1.90 - 5

G. Land Acquisition 0.35 - 0.35 - _

Base Cost 23.80 15.30 39.10 39 100

Physical Contingencies 2.38 1.53 3.91 39 10 Expected price increases 9.30 3.75 13.05 29 33

Total (excluding taxes) 35.48 20.58 56.06 37 143

Taxes on civil works 1.14 - 1.14

Total (including taxes) 36.62 20.58 57.20 61 ANNEX 1 Table 2 Page 2 of 4

Foreign Base Local Foreign Total exchange cost ---- (US$ million) ---- () (%)

Upgrading for efficient O&M A. Civil Works - Upgrading - Earthworks 2.26 0.54 2.80 20 - Structures 1.43 0.77 2.20 35 - Canal lining 0.96 0.96 1.92 50 - Embankments 0.30 0.20 0.50 40

Subtotal 4.95 2.47 7.42 33 56

B. Equipment & Supplies - Vehicles 0.14 0.20 0.34 60 - O&M 0.03 0.53 0.56 95 - Hydrometeorology - 0.09 0.09 100 - Office & drafting - 0.07 0.07 100 - Communications 0.06 0.70 0.76 90 - Survey 0.01 0.10 0.11 90

Subtotal 0.24 1.69 1.93 87 16

C. Consultants - Foreign 0.26 1.48 1.74 85 - Local 0.25 0.03 0.28 10

Subtotal 0.51 1.51 2.02 83 17

D. Training - Foreign - 0.14 0.14 100 - Local 0.08 - 0.08 -

Subtotal 0.08 0.14 0.22 63 2

E. Buildings - Workshops 0.04 0.01 0.05 30 - Stores 0.02 0.01 0.03 33 - Offices/housing 0.10 0.05 0.15 33

Subtotal 0.16 0.07 0.23 30 2

F. Administration 0.63 - 0.63 - 6

C. Land Acquisition 0.10 - 0.10 - 1

Base Cost 6.67 5.88 12.55 49 100

Physical contingencies 0.67 0.58 1.25 46 10 Expected price increases 2.23 1.26 3.49 36 27

Total (excluding taxes) 9.57 7.72 17.29 45 142

Taxes on civil works 0.28 - 0.28

Total (including taxes) 9.85 7.72 17.57 -62- ANNEX 1 Table 2 Page 3 of 4

Foreign Base Local Foreign Total exchange cost -- - (US$ million) ---- () ()

Groundwater A. Civil Works - Pump houses 0.54 0.54 1.08 50 - Access road 0.48 0.48 0.96 50 - Canal lining 2.53 2.55 5.08 50 - Workshop and stores 0.18 0.18 0.36 50

Subtotal 3.73 3.75 7.48 50 17

B. Drilling & Installation - Drilling & installation 1.07 1.60 2.67 60 - Development &testing 0.22 0.32 0.54 60 - Site Investigation 0.41 0.64 1.05 60

Subtotal 1.70 2.56 4.26 60 10

C. Materials & Equipment - Casing & screens 0.94 5.36 6.30 85 - Pump sets 1.69 9.60 11.29 85 - Spare pump units 0.13 0.73 0.86 85 - Transport 0.10 0.55 0.65 85 - Mobile units 0.27 1.50 1.77 85 - Hydrologic equipment 0.06 0.32 0.38 85 - Workshop equipment 07 0.37 0.44 85 - Drilling equipment '.15 0.82 0.97 85 - Pump & engine spares 0.19 1.17 1.36 85

Subtotal 3.60 20.42 24.02 85 55

D. Consultants - Foreign 0.60 3.34 3.94 85 - Local 0.72 0.08 0.80 10

Subtotal 1.32 3.42 4.74 72 11

E. Training - Foreign - 0.25 0.25 100

Subtotal - 0.25 0.25 100 1

F. Administration/Overheads 2.56 - 2.56 -

Subtotal 2.56 - 2.56 - 6

Base Cost 12.91 30.40 43.31 70 100

Physical contingencies 1.29 3.04 4.33 70 10 Expected price increases 3.33 5.34 8.67 62 20

Total (excluding taxes) 17.53 38.78 56.31 69 130

Taxes on civil works 0.42 - 0.42

Total (including taxes) 17.95 38.78 56.73 - 63 - ANNEX 1 Table 2 Page 4 of 4

Foreign Base Local Foreign Total exchange cost ---- (US$ million) ---- (%) (%)

Studies and Design Parigi Poso Consulting Services Foreign 0.45 2.59 3.04 85 Local 2.20 0.38 2.58 10 Contracted services 0.26 0.39 0.65 60 Equipment - 0.15 0.15 100 Facilities 0.35 0.04 0.39 10

Subtotal 3.26 3.55 6.81 52 73

Kali Progo Sermo Dam - Study Consultants Foreign 0.01 0.08 0.09 90 Local 0.03 0.01 0.04 25 Equipment - 0.06 0.06 100

Subtotal 0.04 0.15 0.19 79 2

Polmas Sidrap Studies Consultants Foreign 0.12 0.70 0.82 85 Local 0.46 0.10 0.56 10 Contracted surveys and investigations 0.12 0.12 0.24 50 Equipment and supplies 0.02 0.26 0.28 95

Subtotal 0.72 1.18 1.90 62 20

Administration 0.40 - 0.40 - 5

Base Cost 4.42 4.88 9.30 52 100

Physical contingencies 0.45 0.45 0.90 52 10 Expected price increases 1.64 1.09 2.74 40 29

Total (excluding taxes) 6.52 6.42 12.94 50 139

Total (including taxes) 6.52 6.42 12.94 50 -

Grand Total (excluding taxes) 69.10 73.50 142.60 Grand Total (including taxes) 70.94 73.50 144.44 INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Schedule of Expenditures for RehabilitatiOn Subproject (IUSS million)

1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 Total Local Foreign Total Local Foreign Total Local Foreign Total Local Foreign Total Local Foreign Total Local Foreign Total Local Foreign Total

Civil Works - - - 1.80 1.60 3.40 2.02 2.38 4.40 5.40 2.40 7.80 7.95 3.31 11.26 - - - 17.17 9.69 26.86

Base cost - - - 1.80 1.60 3.40 2.02 2.38 4.40 5.40 2.40 7.80 7.95 3.31 11.26 - - - 17.17 9.69 26.86

Physical contingencies - - - 0.18 0.16 0.34 0.20 0.24 0.44 0.54 0.24 0.78 0.80 0.33 1.13 - - - 1.72 0.97 2.69 E:pected price increasea - - - 0.22 0.14 0.36 0.57 0.45 1.02 2.32 0.72 3.04 4.61 1.35 5.96 - - - 7.72 2.66 10.38

Subtotal - - 2.20 1.90 4.10 2.79 3.07 5.86 8.26 3.36 11.62 13.36 4.99 18.35 - - - 26.61 13.32 39.93

Equipment and Supplies Vehicles - - - 0.30 0.40 0.70 ------0.30 0.40 0.70 O6M - - - 0.09 1.69 1.78 ------0.09 1.69 1.78 Office - - - - 0.07 0.07 ------0.07 0.07 Survey - - - - 0.16 0.16 ------0.16 0.16

Base cost - _ - 0.39 2.32 2.71 - - - _ _ - - - _ - - - 0.39 2.32 2.71

Physical contingencies - - - 0.04 0.23 0.27 ------0.04 0.23 0.27 Expected price increases - - - 0.06 0.20 0.26 ------0.06 0.20 0.26

Subtotal - - _ 0,49 75 3.4q3 _- ______- - 2775 3ML4

Consultants Foreign - - - 0.09 0.51 0.60 0.11 0.64 0.75 0.11 0.64 0.75 0.13 0.73 0.86 - - - O." 2.52 2.96 Local - - - 0.64 0.07 0.71 0.81 0.09 0.90 0.81 0.09 0.90 0.95 0.11 1.06 - - - 3.21 0.36 3.57

Base coat - - - 0.73 0.58 1.31 0.92 0.73 1.65 0.92 0.73 1.65 1.08 0.84 1.92 - - - 3.65 2.88 6.53

Physical contingencies - - - 0.07 0.06 0.13 0.09 0.07 0.16 0.09 0.07 0.16 0.11 0.08 0.19 - - - 0.36 0.28 0.64 Expected price increases - - - 0.09 0.05 0.14 0.26 0.22 0.48 0.40 0.31 0.71 0.63 0.39 1.02 - - - 1.38 0.97 2.35

Subtotal - - - 0.89 0.69 1.58 1.27 1.02 2.29 1.41 1.11 2.52 1.82 1.31 3.13 - - - 5.39 4.13 9.52

Other Costs Mapping - - - 0.06 0.12 0.18 0.08 0.14 0.22 ------0.14 0.26 0.40 Buildingsloffices - - - 0.20 0.15 0.35 ------0.20 0.15 0.35 Administration - - - 0.48 - 0.48 0.48 - 0.48 0.48 - 0.48 0.46 - 0.46 - - - 1.90 - 1.90 Land acquisition - - - 0.20 - 0.20 0.15 - 0.15 ------0.35 - 0.35

Base cost - - - 0.94 0.27 1.21 0.71 0.14 0.85 0.48 - 0.48 0.46 - 0.46 - _ _ 2.59 0.41 3.00

Physical contingencies - - - 0.09 0.02 0.11 0.07 0.01 0.08 0.05 0.05 0.05 - 0.05 - - - 0.26 0.03 0.29 Expected price increases - - - 0.04 0.02 0.06 0.02 - 0.02 ------0.06 0.02 0.08

Subtotal - - - 1.07 0.31 1.38 0.80 0.15 0.95 0.53 - 0.53 0.51 - 0.51 - - - 2.91 0.46 3.37

Total _ _ _ 4.65 5.65 10.30 4.86 4.24 9.10 10.20 4.47 14.67 15.69 6.30 21.99 - - - 35.40 20.66 56.06

Taxes on civil works - - - 0.10 - 0.10 0.23 - 0.23 0.26 - 0.26 0.55 - 0.55 - - - 1.14 - 1.14

TOTAL 4.75 565 10.40 5.09 4.24 9.33 10.46 4.47 14.93 16.24 6.30 2254 - - 3554 2066 5720 INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Schedule of Expenditures for Upgrading for Efficient OM Subpro-ect

(US$ million)

1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 Total Local Foreign Total Local Foreign Total Local Foreign Total Local Foreign Total Local Foreign Total Local Foreign Total Local Foreign Total

Civil Works - - - 0.53 0.13 0.66 1.59 0.39 1.98 1.38 1.00 2.38 1.45 0.95 2.40 - - - 4.95 2.47 7.42

Base cost - - - 0.53 0.13 0.66 1.59 0.39 1.98 1.38 1.00 2.38 1.45 0.95 2.40 - - - 4.95 2.47 7.42

Physical contingencies - - - 0.05 0.01 0.06 0.16 0.04 0.20 0.14 0.10 0.24 0.14 0.10 0.24 - - - 0.49 0.25 0.74 Expected price increases - - - 0.06 0.01 0.07 0.45 0.07 0.52 0.59 0.30 0.89 0.83 0.36 1.20 - - 1.94 0.74 2.68

Subtotal - - - 0.64 0.15 0.79 2.20 0.50 2.70 2.11 1.40 3.51 2.43 1.41 3.84 - _ 7.38 3.46 10.8.4

Equipment Vehicles - - 0.14 0.20 0.34 ------0.14 0.20 0.34 O&M and others - - - 0.10 1.49 1.59 - - - - - _ _ 0.10 1.49 1.59

Base cost - - - 0.24 1.69 1.93 - - _- _ _ 0.24 1.69 1.93

Physical contingencies - - - 0.02 0.17 0.19 ------0.02 0.17 0.19 Expected price increases - - - 0.04 0.15 0.19 ------0.04 0.15 0.19

Subtotal - - - 0.30 2.01 2.31 ------0.30 2.01 2.31

Consultants and Training Consultants Foreign - - - 0.03 0.49 0.52 0.03 0.49 0.52 0.10 0.25 0.35 0.10 0.25 0.35 - - - 0,26 1.48 1.74 Local - - - 0.08 - 0.08 0.08 - 0.08 0.06 - 0.06 0.06 - 0.06 - - - 0.25 0.03 0.28

Training Foreign - - - - 0.07 0.07 - 0.07 0.07 ------0.14 0.14& Local - - - 0.02 - 0.02 0.04 - 0.04 0.02 - 0.02 ------0.08 - 0.08

Base cost - - - 0.13 0.56 0.69 0.15 0.56 0.71 0.18 0.25 0 43 0.16 0.25 0.41 - - - 0.59 1.65 2.24

Physical contingencies - - - 0.01 0.06 0.07 0.01 0.06 0.07 0.02 0.02 0.04 0.01 0.03 0.04 - 0.06 0.16 0.22 Expected price increases - - - 0.02 0.05 0.07 0.04 0.11 0.15 0.08 0.08 0.16 0.09 0.11 0.20 - _ - 0.23 0.35 0.58

Subtotal - - - 0.16 0.67 0.83 0.20 0.73 0.93 0.28 0.35 0.63 0.26 0.39 0.65 - - - 0.88 2.16 3.04

Building, Administration, Etc. Buildings _ _ - 0.08 0.03 0.11 0.08 0.04 0.12 ------0.16 0.07 0.23 Administration - - - 0.20 - 0.20 0.20 - 0.20 0.13 - 0.13 0.10 - 0.10 - _ _ 0.63 - 0.63 Land acquisition - - - 0.05 - 0.05 0.05 - 0.05 ------_ _ 0.10 - 0.10

Base cost - - - 0.33 0.03 0.36 0.33 0.04 0.37 0.13 - 0.13 0.10 - 0.10 - - - 0.89 0.07 0.n

Physical contingencies - - - 0.04 - 0.04 0.03 0.01 0.04 0.01 - 0.01 0.01 - 0.01 - - - 0.09 0.01 0.10 Expected price increases - - - 0.01 - 0.01 0.02 0.01 0.03 ------0.03 0.01 0.04

Subtotal - - 0.38 0.03 0.41 0.38 0.06 0.44 0.14 - 0.14 0.11 - 0.11 - 1.01 0.09 1.10

Total - - 1.48 2.86 4.34 2.78 1.29 4.07 2.53 1.75 4.28 2.80 1.80 4.60 - - _ 9.57 7.72 17.29 l

Taxes on civil works - - - 0.02 - 0.02 0.07 - 0.07 0.09 - 0.09 0.10 - 0.10 - _ _ 0.28 - 0.28

TOTAL _ _ _ 1.50 2.86 4.36 2.85 1.29 4.14 2.62 1.75 4.37 2.90 1.80 4.70 - _ - 9.85 7.72 17.57 INDONESIA

SEVENTECNT IRRIGATIONPROJECT'

EAST JAVA PROVINCE

Schedule of Expenditurea for Groundwater Subproject (USS ofillion)

1981/82 /a 1982/83 1983/84 1984/85 1985186 1986/87 Total Local Foreign Total Local Foreign Total Local Poreign Total Local Foreign Total Local Foreign Total Local Foreign Total Local Foreign Total

Civil Works Eant Java - - - 0.14 0.14 0.28 0.22 0.23 0.45 0.26 0.25 0.51 0.12 0.13 0.25 0.20 0.19 0.39 0.94 0.95 1.89 Nadine - - - 0.17 0.17 0.34 0.33 0.34 0.67 0.08 0.08 0.16 0.22 0.21 0.43 0.21 0.22 0.43 1.01 1.02 2.03 Kediri-Nganjuk - - - 0.30 0.30 0.60 0.51 0.52 1.03 0.36 0.36 0.72 0.28 0.27 0.55 0.33 0.33 0.66 1.78 1.78 3.56

Base coat - - - 0.61 0.61 1.22 1.06 1.09 2.15 0.70 0.69 1 39 0.62 0.61 1.23 0.74 0.74 1.48 3.73 3.75 7.48

Physical contingencies - - - 0.06 0.06 0.12 0.11 0.11 0.22 0.07 0.07 0.14 0.06 0.06 0.12 0.07 0.08 0.15 0.37 0.38 0.75 Expected price increases - - - 0.07 0.05 0.12 0.30 0.34 0.64 0.30 0.21 0.51 0.36 0.26 0.62 0.56 0.34 0.90 1.59 1.20 2.79

Subtotal - _ - 0.74 0.72 1.46 1.47 1.54 3.01 1.07 0.97 2.04 1.04 0.93 1.97 1.37 1.16 2.53 5.69 5.33 11.02

Drilling and Installation East Java - - 0.07 0.11 0.18 0.17 0.26 0.43 0.18 0.27 0.45 0.10 0.15 0.25 0.17 0.25 0.42 0.69 1.04 1.73 Mnadiun - - - 0.42 0.19 0.31 0.18 0.28 0.46 0.05 0.07 0.12 0.14 0.21 0.35 0.14 0.20 0.34 0.63 0.95 1.58 Kediri-Ng.njuk - _ _ 0.04 0.05 0.09 0.10 0.16 0.26 0.08 0.13 0.21 0.07 0.10 0.17 0.09 0.13 0.22 0.38 0.57 0.95

Base coat _ - _ 0.23 0.35 0.58 0.45 0.70 1.15 0.31 0.47 0.78 0.31 0.46 0.77 0.40 0.58 0.98 1.70 2.56 4.26

Physical contingenciea - _ - 0.02 0.04 0.06 0.05 0.07 0.12 0.03 0.05 0.08 0.03 0.05 0.08 0.04 0.06 0.10 0.17 0.26 0.43 Expected price increases - - - 0.03 0.03 0.06 0.13 0.03 0.16 0.13 0.14 0.27 0.09 0.19 0.28 0.31 0.27 0.58 0.69 0.66 1.35

Subtotal - - - 0.28 0.42 0.70 0.63 0.80 1.43 0.47 0.66 1.13 0.43 0.70 1.13 0.75 0.91 1.66 2.56 3.48 6.04

Materiala And Eguipment East Ja-a 0.09 0.54 0.63 0.52 2.98 3.50 - - - 0.41 2.30 2.71 ------1.02 5.82 6.84 Madiun 0.28 1.61 1.89 0.79 4.49 5.28 0.39 2.20 2.59 ------1.46 8.30 9.76 Kediri-EganJuk 0.07 0.40 0.47 0.66 3.69 4.35 - - - 0.39 2.21 2.60 ------1.12 6.30 7.42

Base cost 0.44 2.55 2.99 1.97 11.16 13.13 0.39 2.20 2.59 0.80 4.51 5.31 _ _- _ - - - 3.60 20.42 24.02

Physical contingencies - 0.20 1.12 1.32 0.04 0.22 0.26 0.08 0.45 0.53 - - - - - 0.36 2.04 2.40 Expected price increases - - - 0.24 1.00 1.24 0.11 0.40 0.51 0.34 1.35 1.59 ------0.69 2.75 3.44

Subtotal 0.44 2.55 2.99 2.41 13.28 15.69 0.54 2.82 3.36 1.22 6.31 7.53 - - _ - - - 4.65 25.21 29.86

Con-ultants And Training Consultants Foreign - - - 0.20 1.10 1.30 0.20 1.10 1.30 0.20 1.14 1.34 ------0.60 3.34 3.94 Local - - - 0.25 0.03 0.28 0.25 0.03 0.28 0.22 0.02 0.24 ------0.72 0.08 0.80

Training - - - - 0.05 0.05 - 0.10 0.10 - 0.10 0.10 -- - - 0.25 0.25

Base cost _ _ - 0.45 1.18 1.63 0.45 1.23 1.68 0.42 1.26 1.68 - - - 1.32 3.67 4.99

Physical contingencies - - - 0.04 0.12 0.16 0.05 0.12 0.17 0.04 0.13 0.17 ------0.13 0.37 0.50 Expected price increases - - - 0.05 0.11 0.16 0.13 0.23 0.36 0.18 0.38 0.56 ------0.36 0.72 1.08

Subtotl _ _ - 0.54 1.41 1.95 0.63 1.58 2.21 0.64 1.77 2.41 ------1.81 4.76 6.57

Adsinistrntion And Overheads - - - 0.51 - 0.51 0.51 - 0.51 0.51 - 0.51 0.51 - 0.51 0.51 - 0.51 2.56 - 2.56

E.Ae coat - - - 0.51 Z 0.51 0.51 - 0.51 0.51 - 0.51 0.51 - 0.51 0.51 _ 0.51 2.56 - 2.56

Physical contingencien - - - 0.05 - 0.05 0.05 - 0.05 0.05 - 0.05 0.05 - 0.05 0.05 - 0.05 0.26 - 0.26 Expected price increaes ------

Subtotal - - _ 0.56 Z 0.56 0.56 - 0.56 0.56 - 0.56 0.56 - 0.56 0.56 - 0.56 2.82 - 2.82

Total 0 44 2.55 2.99 4.53 15.83 20.36 3.83 6.74 10.57 3.96 9.71 13.67 2.03 1.63 3.66 2.68 2.07 4.75 17.53 38.78 56.31

Taxe. n cioil works - - - 0.05 - 0.05 0.11 - 0.11 0.08 - 0.08 0.08 - 0.08 0.10 - 0.10 0.42 - 0.42

TOTAL 0.44 2.55 2.99 4.58 15.83 20.41 3.94 6.74 10.68 4.04 9.71 13.75 2.11 1.63 3.74 2.78 2.07 4.85 17.95 38.78 56.73

/s To be procored onder Irrigation VIII Project (Loan 1434-IND). ANNEX 1

- 67 - Table 5b INDONESIA

SEVENTEENTHIRRIGATION PROJECT:

EAST JAVA PROVINCE

Schedule of Expenditures - East Java Groundwater Component

Total Investment Costs (US$'000 1981 prices)

/a /b Advance 1987/88- 5-year 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1988/89 totals

Materials & Equipment Casings & screens 188 845 - 791 - - - 1,824 Pimp sets 80 1,067 - 1,645 - - - 2,792 Spare pump units - 190 - - - - - 190 Transport - 3 - - - - _ 3 Mobile units - 621 - - - - - 621 Hydrologic equipment - 173 - - - - - 173 Workshop equipment - 250 - - - - - 250 Drilling equipment & spare parts 252 298 - - - - - 550 Pump & engine parts 110 - - 275 - - - 385

Subtotal 630 3,447 - 2.711 - - - 6,788

Drilling & Installation Drilling & installation - 106 261 273 142 249 786 1,031 Development & testing - 21 45 45 43 55 170 209 Site & miscellaneous - 50 120 127 65 112 353 474

Subtotal - 177 426 445 250 416 1,309 1,714

Civil Works Pump houses - 23 68 68 45 90 270 294 Access roads - 20 60 60 40 80 240 260 Channels & lining - 90 326 385 163 217 900 1,181 Workshop & stores - 150 - - - - - 150

Subtotal - 283 454 513 248 387 1,410 1,885

Engineering Services P2AT overheads - 170 170 170 170 170 550 850 Consultants - 375 375 375 - - - 1,125 Training - 20 40 40 - - - 100

Subtotal - 565 585 585 170 170 550 2,075

Total 630 4,472 1,465 4,254 668 973 3,269 12,462

/a Advance procurement of materials and equipment in 1981/82 from balance of Loan 1434-IND (Irrigation VIII).

/b Investment costs for the first five years including advance procurement. - 68 - ANNEX1 Table 5c INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Schedule of Expenditures - Kediri-Nganjuk Groundwater Component

Total Investment Costs (US$-000 1981 prices)

/a /b Advance 1987/88- 5-year 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1988/89 totals

Materials & Equipment Casings & screens 114 431 - 490 - - - 1,035 Pump sets 160 2,274 - 1,940 - - - 4,374 Spare pump units - 341 - - - - - 341 Transport - 340 - - - - - 340 Mobile units - 308 - - - - - 308 Hydrologic equipment - 145 - - - - - 145 Workshop equipment - 103 - - - - - 103 Drilling equipment & spare parts 138 57 - - - - - 195 Pump & engine parts 55 347 - 174 - - - 576

Subtotal 467 4,346 - 2,604 - - - 7,417

Drilling & Installation Drilling & installation - 55 136 114 85 118 214 508 Development & testing - 13 41 34 28 35 66 151 Site & miscellaneous - 19 80 66 52 69 128 286

Subtotal - 87 257 214 165 222 408 945

Civil Works Pump houses - 23 135 108 104 113 230 483 Access roads - 20 120 96 92 100 204 428 Channels & lining - 350 771 520 356 449 1,192 2,446 Workshop & stores - 205 - - - - - 205

Subtotal - 598 1,026 724 552 662 1,626 3,562

Engineering Services P2AT overheads - 170 170 170 170 170 550 850 Consultants - 375 375 375 - - - 1,125 Training - 10 20 20 - - - 50

Subtotal - 555 565 565 170 170 550 2,025

Total 467 5,586 1,848 4,107 887 1,054 2,584 13,949

/a Advance procurement of materials and equipment in 1981/82 from balance of Loan 1434-IND (Irrigation VIII).

/b Investment costs including advance procurement. - 69 - ANNEX 1 Table 5d INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Schedule of Expenditures - Madiun Groundwater Component

Total Investment Costs (US$'000 1981 prices)

/a /b Advance 1987/88- 5-year 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1988/89 totals

Materials & Equipment Casings & screens 1,262 2,137 - - - - - 3,399 Pump sets 410 1,960 1,750 - - - - 4,120 Spare pump units - 331 - - - - - 331 Transport - 185 124 - - - - 309 Mobile units 115 286 440 - - - - 841 Hydrologic equipment - 61 - - - - - 61 Workshop equipment - 85 - - - - - 85 Drilling equipment & spare parts 75 99 49 - - - - 223 Pump & engine parts 26 133 226 - - - - 385

Subtotal 1,888 5,277 2,589 - - - - 9,754

Drilling & Installation Drilling & installation - 224 328 88 248 240 448 1,128 Development & testing - 33 52 13 39 38 70 175 Site & miscellaneous - 53 83 23 63 60 112 282

Subtotal - 310 463 124 350 338 630 1,585

Civil Works Pump houses - 54 90 23 68 68 126 303 Access roads - 48 80 20 60 60 112 268 Chanaels & lining - 240 500 119 300 300 580 1,459 Workshop & stores ------

Subtotal - 342 670 162 428 428 818 2,030

Engineering Services P2AT overheads - 170 170 170 170 170 500 850 Consultants - 690 500 500 - - - 1,690 Training - 20 40 40 - - - 100

Suibtotal - 880 710 710 170 170 500 2,640

Total 1,888 6,809 4,432 996 948 936 1,948 16,009

/a Advance procurement of materials and equipment in 1981/82 from balance of Loan 1434-IND (Irrigation VI]I).

/b Investment costs including advance procurement. INDONESIA

SEVENTEENTH IRRIGATION PROJECT

EAST JAVA PROVINCE

Schedule of Expenditures for Studies and Design Subproject (US $-000)

1982/83 1983/84 1984/85 1985/86 1986/87 Total Local Foreign Total Local Foreign Total Local Forelgn Total Local Foreign Total Local Foreign Total Local Foreign Total

Parigi Poso Consulting services 2,585 3,037 Foreign 60 340 400 110 640 750 162 925 1,087 120 680 800 - - - 452 383 2,580 Local 212 38 250 555 95 650 850 150 1,000 580 100 680 - - - 2,197 255 390 645 Contracted services 20 30 50 200 300 500 35 60 95 ------146 Equipment - 80 80 - 66 66 ------146 39 390 Facilities 54 6 60 117 13 130 126 14 140 54 6 60 - - - 351

6,798 Subtotal 346 494 840 982 1,'14 2,096 1,173 1,149 2,322 754 786 1,540 - - - 3.255 3.543

Kali Progo Sermo Dam - Study Consultants -4 75 88 1 Foreign 13 75 88 ------13 34 4 38 Local 34 4 38 ------55 Equipment - - - - 55 55 ------55

134 181 Subtotal 47 79 126 - 55 55 ------47

Polmas Sidrap Studies Consultants 125 700 825 Foreign - - - 62 350 412 63 350 413 ------459 96 555 Local - - - 144 26 170 315 70 385 ------Contracted surveys and 120 120 240 investigations - - - 40 40 80 80 80 160 ------15 265 280 Equipment and supplies - - - 5 95 100 10 170 180 ------

719 1,181 1,900 Subtotal - - - 251 511 762 468 670 1,138 ------

Base subtotal 393 573 966 1,233 1,680 2,913 1,641 1,819 3,460 754 786 1,540 _ _ _ 4,021 4,858 8,879

400 Administration 48 - 48 146 - 146 173 - 173 33 - 33 - - - 400 -

Base cost 441 573 1,014 1,379 1,680 3,059 1,814 1,819 3,633 787 786 1,573 - _ _ 4,421 4,858 9,279

Physical contingencies 44 57 101 138 168 306 181 182 363 79 79 158 - - - 442 458 900 Expected price increases 48 52 100 346 319 665 840 396 1,236 407 330 737 - - - 1,641 1,093 2,734

Total 533 682 1,215 1,863 2,167 4,030 2,835 2,397 5,232 1,273 1,195 2,468 _ - _ 6,504 6,409 12,913

mn4 ANNEX I - 71 - Table 7

INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Cost Estimates by Category of Works (US$ million)

Total project Base Physical Expected cost foreign Base contin- price without cost cost gencies increases taxes

Civil Works Rehabilitation 9.99 26.86 2.69 10.38 39.93 O&M 2.77 7.42 0.74 2.68 10.84 Groundwater 3.75 7.48 0.75 2.79 11.02

Subtotal 16.51 41.76 4.18 15.85 61.79

Drilling and Installation Groundwater 2.56 4.26 0.43 1.35 6.04

Subtotal 2.56 4.26 0.43 1.35 6.04

Equipment and Supplies Vehicles Rehabilitation 0.40 0.70 0.07 0.07 0.84 o&M 0.20 0.34 0.03 0.03 0.40 Groundwater - - - - - Studies 0.05 0.08 0.01 0.01 0.10

Subtotal 0.65 1.12 0.11 0.11 1.34

Other Equipment and Supplies Rehabilitation 1.92 2.01 0.20 0.19 2.40 O&M 1.49 1.59 0.16 0.16 1.91 Groundwater 20.42 24.02 2.40 3.44 29.86 Studies 0.37 0.37 0.04 0.04 0.45

Subtotal 24.20 27.99 2.80 3.83 34.62

Consultants Rehabilitation 2.88 6.53 0.65 2.35 9.53 0&M 1.51 2.02 0.20 0.55 2.77 Groundwater 4.07 4.74 0.47 1.05 6.26 Studies 3.65 8.00 0.80 2.36 11.16

Subtotal 12.11 21.29 2.12 6.31 29.72

Training Rehabilitation - - - - - O&M 0.14 0.22 0.02 0.03 0.27 Groundwater 0.25 0.25 0.03 0.03 0.31

Subtotal 0.39 0.47 0.05 0.06 0.58

Administration & Overheads Rehabilitation 0.41 3.00 0.30 0.08 3.38 O&M 0.07 0.96 0.10 0.04 1.10 Groundwater 2.56 0.26 - 2.82 Studies 0.04 0.83 0.08 0.30 1.21

Subtotal 0.52 7.35 0.74 0.42 8.51

Total 56.94 104.24 10.43 27.93 142.60 -72 - ANNEX I Table 8

INDONESIA

SEVENTEENTH IRRIGATION PROJECT XVII

EAST JAVA PROVINCE

Proposed Allocation of Loan Proceeds (US$ million)

Net base cost and expected Loan amount Disbursement price increases Bank Fund percentage

Civil Works Rehabilitation 37.2 7.4 7.4 40 O&M 10.1 5.0 5.0 100 Groundwater 10.3 2.2 2.2 40

Subtotal 57.6 14.6 14.6 -

Drilling and Installation Groundwater 5.6 1.1 1.1 40

Subtotal 5.6 1.1 1.1 -

Equipment and Supplies Vehicles Rehabilitation 0.8 - - O&M 0.4 - - Groundwater - - - Studies 0.1 0.1 - 100

Subtotal 1.3 0.1 - -

Other Equipment and Supplies Rehabilitation 2.2 } 2.8 } 1.0 100 O&M 1.7 } Groundwater 27.5/a 18.4 6.1 100 Studies 0.4 0.4 - 100

Subtotal 31.8 21.6 7.1 100

Consultants Rehabilitation 8.9 } 11.5 } - .100 O&M 2.6 } } Groundwater 5.8 5.8 - 100 Studies 10.4 10.4 - 100

Subtotal 27.7 27.7 - 100

Training Rehabilitation - - - O&M 0.3 - 0.3 100 Groundwater 0.2 - 0.2 100

Subtotal 0.5 - 0.5 100

Administration & Overheads Rehabilitation O&M } 7.5 - - Groundwater Studies

Subtotal 7.5

Unallocated/Physical Contingencies 10.6 4.9 1.7

Total (excluding taxes) 142.6 70.0 25.0

/a Advanced procurement of $3.0 million is included. -73 - ANNEX 1 Table 9

INDONESIA

SEVENTEENTH IRRIGATION PROJECT

EAST JAVA PROVINCE

Estimated Schedule of Disbursements

IBRD fiscal Cumulative disbursement year and semester (US$ million)

FY83 First _ Second 1.0

FY84 First 4.5 Second 8.5

FY85 First 15.5 Second 23.5

FY86 First 32.5 Second 43.5

FY87 First 56.0 Second 66.5

FY88 First 68.5 Second 70.0 INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Rehabilitation Subproject

(a) Estimates of Unit Cost per Hectare (US$ end-1981)

Main system Canals Subtotal New and Drains Tertiary/on-farm system (costs per ha) Earth- Structural repair of Earth- Struc- Canal/drain earthworks Main On-farm Grand total works Lining repairs structures works tures Tertiary Quaternary Drains Structures system works (costs per ha)

Malang (14,200 ha) 55.0 125.0 84.0 116.0. - - 45 11.0 12.0 110.0 380.0 178.0 558.0 Kediri (12,100 ha) 25.0 73.0 73.0 185.0 - - 45 i1.0 12.0 i1O.0 356.0 178.0 534.0 Jombang (13,900 ha) 45.0 44.0 46.0 221.0 15.0 6.0 45 11.0 12.0 110.0 377.0 178.0 555.0 Mojokerto (6,800 ha) 64.0 71.0 31.0 105.0 63.0 9.0 45 11.0 12.0 110.0 343.0 178.0 521.0 1 Madiun (3,000 ha) 19.0 56.0 21.0 74.0 44.0 14.0 45 11.0 12.0 110.0 228.0 178.0 406.0 4

(b) Estimates of Volumes of Work (Averages per Unit)

Main system Canals New and Drains Tertiary/on-farm system Earth- Structural repair of Earth- Struc- Canal/drain earthworks Parameter works Lining _repairs structures works tures Tertiary Quaternary Drains Structures

Length in meters per ha 10.0 - n.a. n.a. n.a. - 23.0 52.0 29.0 n.a.

Earthwork or lining in 60.0 1.0 35.0 3.0 cu m per ha to to 6.0 9.0 to n.a. 23.0 7.0 7.0 to 72.0 2.0 50.0 5.0

Numbers of structures 30.0 per 1,000 ha - - 6.0 n.a. n.a. - n.a. n.a. n.a. to 50.0 ANNEX 1 - 75 - Table 11 Page 1 of 2 INDONESIA

SEVENTEENTH IRRIGATION PROJECT

EAST JAVA PROVINCE

Groundwater Subproject

Typical Well Operation Standards & Costs, 1981 (US$)

East Java Kediri-Nganjuk Madiun

------Project Area ------Discharge (l/s) 60 60 90 Command area (ha) 50 50 100 Operation (hrs/yr) 3,200 3,000 2,800

Invesl:ment Cost

WelL 19,700 19,100 46,500 Pump 13,800 13,800 19,300 EngiLne /a 11,200 11,200 15,700 Pump house 4,500 4,500 4,500 Roads 4,000 4,000 4,000 Chanmels 22,500 22,500 20,000

'otal 75,700 75,100 110,000

E. Java Kediri/Nganjuk Madiun Annual. Cost 1981 Economic Financial Economic Financial Economic Financial

Fuel, lubricants 6,479 1,851 5,866 1,676 8,690 2,483 Parts labor 900 900 900 900 1,000 1,000 Operator 300 300 300 300 300 300 Civil works maintenance 260 260 260 260 480 480

Total 7,939 3,311 9,262 10470 4,263

(Rp mil) (5.0) (2.1) (5.8) (2.0) (6.5) (2.7)

Annual, Cost 1990

Fuel 8,615 2,443 7,802 2,212 11,558 3,278 Other 1,460 1,460 1,460 1,460 1,780 1,780

Total 10,075 3,903 9,262 3,672 13,338 5,055

(Rp mil) (6.3) (2.4) (5.8) (2.3) (8.3) (3.2) Useful life (years): Well 25 Pump 12 Engine /a 8 Pump house 25 Roads 25 Channels 25

Cropping pattern: Rice-Rice-Palowijo

/a Includes right-angle gear drive. ANNEX 1 - 76 - Table 11 Page 2 of 2

East Java Kediri-Nganjuk Madiun ------Project Area

Well

Mobilization & site 1,000 1,000 2,000 Drilling & installation 6,200 5,600 16,000 Casing & screen 9,500 9,500 24,000 Develop & test 1,500 1,500 2,500 Miscellaneous 1,500 1,500 2,000

Subtotal 19,700 19,100 46,500

Pump & Engine 25,000 25,000 35,000

Civil Works

Pump house 4,500 4,500 4,500 Access roads 4,000 4,000 4,000 Channels & lining 22,500 22,500 20,000

Subtotal 31,000 31,000 28,500

Total 75,700 75,700 110,000

Criteria

Well depth (m) 80 80 200 Pump discharge (1/s) 60 60 90 Command area (ha) 50 50 100 Operation (hrs/year) 3,200 3,000 2,800 ANNEX 1 Table 12 - 77 -

INDONESIA

SEVENTEENTH IRRIGATION PROJECT

EAST JAVA PROVINCE

Groundwater Subproject

Phasing of Well Drilling

1982/83 1983/84 1984/85 1985/86 1986/87 Total

East Java EH (no.) 15 40 45 - 20 120 OW (no.) 12 20 20 26 22 100 PW (no.) 5 15 15 10 20 65 CA (ha) 200 730 870 370 480 2,650

R'ediri-Nganjuk EH (no.) 5 5 5 - 5 20 OW (no.) 5 5 5 - 5 20 PW (no.) 5 30 24 23 25 107 CA (ha) 310 1,190 840 570 690 3,600

Madiun-Solo EH (no.) ------OW (no.) 2 1 1 1 - 5 PW (no.) 12 20 5 15 16 68 CA (ha) 1,200 2,000 550 1,500 1,500 6,750

T'otal Project EH (no.) 20 45 50 - 25 140 OW (no.) 19 26 26 27 27 125 PW (no.) 22 65 44 48 61 240 CA (ha) 1,710 3,920 2,260 2,440 2,670 13,000

Explanation: EH = Exploratory hole, small diameter OW = Observation hole (piezometer), and test wells PW = Production well, equipped with pump CA = Command area of production wells ANNEX 1 - 78 - Table 13

INDONESIA

SEVENTEENIH IRRIGATION PROJECT

EAST JAVA PROJECT

Consulting Services - Cost Breakdown /a (US$/man-month)

Expatriates Local consultants Foreign Local Total Foreign Local Total Item currency currency cost currency currency cost

Billing Rate Basic salary 3,160 - 3,160 - 830 830 Social benefits 850 - 850 - 190 190 Home office overhead 2,520 - 2,520 55 635 690 Overseas allowance /b 900 - 900 - 220 220 Net fee 470 - 470 - 140 140

Subtotal 7,900 - 7,900 55 2,015 2,070

Reimbursable Expenses Mobilization and travel ------International travel 650 - 650 - Relocation 360 - 360 - - - Subsistence en route 70 - 70 - 40 40 Miscellaneous 140 - 140 - 20 20

Subtotal 1,220 - 1,220 - 60 60

Duty Station Expenses Local duty travel 200 - 200 40 - 40 Per diem - 320 320 - 55 55 Field office overhead - 500 500 - 55 55 Housing and utilities 480 1,060 1,540 30 65 95 Transport 820 - 820 125 - 125

Subtotal 1,500 1,880 3,380 195 175 370

Total 10,620 1,880 12,500/c 250 2,250 2,500/d

/a Based on recent contracts, projected to end-1981 prices. /b Field allowance for local consultants. 7c May vary between $9,900 and $14,000 depending on nationality and experience. 7W Applies to engineers, senior agronomists, senior economists and senior surveyors. Cost of draftsmen and technicians averages $1,000/man-month. ANNEX 1 -79 - Table 14 Page 1 of 2 INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

List of Equipment and Supplies for Rehabilitation and O&M Subprojects

Quantity Unit cost Total cost (numbers) ----- (US$'000) ------

A. Rehabilitation & Upgrading Subproject Vehicles /a Jeeps (4 WD) 18 12.5 225.0 Motorcycles (125 cc) 108 2.0 216.0 Bicycles 272 0.2 54.4 Pickup truck (1/2 ton) 14 10.5 147.0 Trucks 4 14.0 56.0

Subtotal 698.4

Operations & Maintenance Excavator (70 hp x 0.3 mm) 8 100.0 800.0 Grader (70 hp) 8 100.0 800.0 Tamping rammers 24 3.0 72.0 Pumps (4" 0) 12 3.0 36.0 Generator (5 kw) 8 5.0 40.0 Gas welder 8 2.5 20.0 Hand tools 68 set 0.2 13.6

Subtotal 1,781.6

Office & Drafting Electric typwriters 4 2.5 10.0 Drafting machines 20 2.5 50.0 Calculators 20 0.3 6.0

Subtotal 66.0

Survey Theodolites (T-O) 4 5.0 20.0 Levels (NA-1) 22 2.0 44.0 Tapes 80 0.2 16.0 Compasses 80 0.3 24.0 Chain 20 0.3 6.0 Miscellaneous (rods etc.) 12 lots 9.0 48.0

Subtotal 158.0

Total 2,703.0

/a Will be financed under government budget. -80 - ANNEX I Table 14 Page 2 of 2

Quantity Unit cost Total cost (numbers) ----- (US$'000) ------

B. Operations and Maintenance Subproject Vehicles /a Sedans - - Jeeps (4 WD) 6 12.5 75.0 Motorcycles (125 cc) 21 2.0 42.0 Bicycles 211 0.2 42.2 Pickup truck (1/2 ton) 15 10.5 157.5 Trucks (67) 2 14.0 28.0

Subtotal 344.7

Construction Excavator (70 hp x 0.3 mm) 2 100.0 200.0 Grader (70 hp) 2 100.0 200.0 Tamping rammers 12 3.0 36.0 Pumps (4" 0) 6 3.0 18.0 Generator (5 kw) 4 5.0 20.0 Gas welder 4 2.5 10.0 Hand tools 40 sets 0.2 80.0

Subtotal 564.0

Hydro-Meteorology Rainfall gauges (manual) 65 0.3 19.5 Rainfall recorders 3 2.0 6.0 Meteorology stations 7 5.0 35.0 Current meters 4 5.0 20.0 Sediment samplers 4 2.6 10.4

Subtotal 90.9

Office of Drafting /a Manual typwriters 40 0.8 32.0 Electric typwriters 3 2.5 7.5 Drafting machines 11 2.5 27.5 Calculators 11 0.3 3.0

Subtotal 70.0

Communications Radio telephones 9 26.0 234.0 Telephones 40 0.3 12.0 Wassel board caps 7 5.0 35.0 Transmission lines 300 km 1.6 480.0

Subtotal 761.0

Survey Theodolites (T-0) 2 5.0 10.0 Levels (NA-1) 22 2.0 44.0 Tapes 11 0.2 2.2 Compasses 41 0.3 4.1 Chain 52 0.3 15.0 Miscellaneous (rods, sitaffs,etc.) 9 lots 4.0 36.0

Subtotal 111.3

Total 1,941.9

/a Will be financed under government budget. TNDON1ESA

SEVENTEENTH IRRIGATION PROJECT

EAST JAVA PROVINCE

Groundwater Subproject

East Java Component

Procurement Schedule for Materials and Equipment (Annual costs in US$'000)

Unit Advance /a /b cost % 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 5-year total Unit ($) F.C. Qty. Cost Qty. Cost Qty. Cost Qty. Cost Qty. Cost Qty. Cost Qty. Cost

Casing & Screens 85 Casing - 12 in. m 135 785 99 3,473 460 - - 3,212 434 - - - - 6,685 903 6 in. m 65 318 21 1,409 92 - - 1,303 85 - - - - 2,712 177 2 in. m 18 1,386 25 6,138 110 - - 5,676 102 - - - - 11,814 212 Screen - 6 in. m 120 333 40 1,457 175 - - 1,350 162 - - - - 2,807 337 Reducer 12 x 6 in. no. 140 20 3 54 8 - - 56 8 - - - - 110 15

Pumpsets 85 Turbine - 60 1/s no. 25,000 - - 35 875 - - 53 325 - - - - 88 2,200 45 l/s no. 16,000 5 80 12 192 - - 20 320 - - - - 32 512

Spare Pump Units 85 Diesel engines 36 hp no. 11,000 - - 14 154 ------14 154 Pump bowls - 10 in. no. 2,200 - - 7 15 ------7 15 Column & shaft length 715 - - 30 21 ------30 21

Transport $ - 85 - - - 338 ------_ - 338 Mobile units $ - 85 - - - 621 ------621 Hydrologic equipment $ - 85 - - - 173 - - - - - _ _ - 173 Workshop equipment $ - 85 - - - 250 ------250 Drilling equipment & spare parts $ - 85 - 252 - 298 ------298 Pump & engine parts $ - 85 - 110 - - -- 275 - - - _ - 275

Total 630 3,447 - 2,711 6,158

/a Advance procurement in 1981/82 from balance of Loan 1434-IND (Irrigation VIII). 75 Advance procurement is not included.

I-.0

1U, INDONESIA

SEVENTEENTHIRRIGATION PROJECT

EAST JAVA PROVINCE

Groundwater Subproject

Madiun Component

Procurement Schedule for Materials and Equipment (Annual costs in US$'000)

Unit Advance /a /b Cost % 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 5-year total Unit ($) F.C. Qty. Cost Qty. Cost Qty. Cost Qty. Cost Qty. Cost Qty. Cost Qty. Cost

Casing & Screens 85 Casing - 16 in. m 215 2,244 482 3,756 808 ------3,756 808 10 in. m 122 4,449 543 7,551 921 ------7,551 921 3 in. m 35 804 28 1,596 56 ------1,596 56 Screen - 10 in. m 170 1,230 209 2,070 352 ------2,070 352

Pumpsets 85 Turbine - 90 1/s no. 35,000 10 350 50 1,750 50 1,750 ------100 3,500 150 1/s no. 60,000 1 60 3 180 _ _------3 180 Centrifugal 10 1/s no. 15,000 - - 2 30 ------2 30

Spare Pump Units 85 Dieselengines 50 hp no. 12,650 - - 10 127 ------10 127 36 hp no. 11,000 - - 10 110 ------10 110 Pump bowls - 10 in. no. 2,750 - - 10 28 ------10 28 12 in. no. 3,300 - - 10 33 ------10 33 Column & shaft length 660 - - 50 33 ------50 33

Transport $ - 85 - - - 185 - 124 ------309 Mobile units $ - 85 - 115 - 286 - 440 ------726 Hydrologic equipment $ - 85 - - - 61 ------61 Workshop equipment $ - 85 - - - 85 ------85 Drilling equipment & spare parts $ - 85 - 75 - 99 - 49 ------148 Pump & engine parts $ - 85 - 26 - 133 - 226 ------359

Total 1,888 5,277 2,589 - - - 7,866

/a Advance procurement in 1981/82 from balance of Loan 1434-IND (Irrigation VIII). 79 Advance procurement is not included.

tDr SEVENTEENTHIRRIGATION PROJECT

EAST JAVA PROVINCE

Groundwater Subproject

Kediri-Nganjuk Component

Procurement Schedule for Materials and Equipment (Annual costs in US$-000)

Unit Advance /a /b cost x 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 5-year total Unit ($) F.C. Qty. Cost Qty. Cost Qty. Cost Qty. Cost Qty. Cost Qty. Cost Qty. Cost (in) (in) (in) (mn) (mn) (m) (in)

Casing & Screens 85 Casing - 12 in. m 135 300 41 834 123 - - 1,080 145 - - - - 1,914 268 8 in. m 90 - - 600 54 - - 540 48 - - - - 1,140 102 6 in. m 65 300 20 798 52 - - 1,012 66 - - - - 1,810 118 2 in. m 18 60 1 1,530 28 - - 1,060 19 - - - - 2,590 47 PVC 6 in. m 35 - - 840 30 - - 756 26 - - - - 1,596 56 Screen - 6 in. m 120 420 50 852 102 - - 1,212 145 - - - - 2,064 248 PVC 6 in. m 40 - - 962 38 - - 864 35 - - - - 1,826 73 Reducer 12 x 6 in. no. 140 12 2 30 4 - - 40 6 - - - - 70 10

Pumpsets 85 X Turbine - 901/s no. 35,000 ------4 140 - - - - 4 140 60 1/s no. 25,000 - - 42 1,050 - - 36 900 - - - - 78 1,950 45 1/s no. 16,000 10 160 14 224 ------14 224 Centrifugal 30 1/s no. 25,000 - - 40 1,000 - - 36 900 - - - - 76 1,900

Spare Pump Units 85 Diesel engines 36 hp no. 11,000 - - 15 165 ------15 165 24 hp no. 9,350 - - 12 112 ------12 112 Pump bowls - 8 in. no. 1,650 - - 2 3 ------2 3 10 in. no. 2,200 - - 8 18 ------8 18 Column & shaft length 660 - - 40 26 ------40 26 Centrifugal pumps no. 3,300 - - 5 17 ------5 17

Transport $ - 85 - - - 340 ------340 Mobile units $ - 85 - - - 308 ------308 Hydrologic equipment $ - 85 - - - 145 ------145 Workshop equipment $ - 85 - - - 103 ------103 Drilling equipment & spare parts $ - 85 - 138 - 57 ------57 Pump & engine parts $ - 85 - 55 - 347 - - - 174 - - - - - 522

Total 467 4,346 - 2,604 - - 6,950

/a Advance procurement in 1981/82 from balance of Loan 1434-IND (Irrigation VIII). 75 Does not include advance procurement.

H H Ln ANNEX 1 - 84 - Table 16

INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE Studies and Design Subproject

List of Equipment and Vehicles

Parigi Poso Kali Progo Polmas Sidrap Quan- Cost Quan- Cost Quan- Cost Total tity $'000 tity $'000 tity $'000 $'000

Surveying Equipment Theodolites 2 20 1 10 5 50 80 Levels 4 10 2 5 8 20 35 EDM 1 10 1 10 2 20 40 Tapes 50 5 50 5 - - 10 Compasses 20 10 10 5 - - 15 Tacheometers - - - - 2 15 15 Accessories - - - - LS 7 7

Office Equipment Typewriters (electric) 3 6 2 4 3 6 16 Typewriters (manual) 4 4 2 2 3 3 9 Photocopiers 2 10 1 5 2 10 25 Electronic calculators 20 6 10 3 - - 9 Drafting equipment LS 12 LS 6 LS 11 29 Plan printer 1 15 - - 1 15 30

Hydrologic Equipment Sediment samplers - - - - 15 15 15 Gauges, spares - - - - 20 2 2 Boats - - - - 3 30 30 Climatological equipment - - - - 3 30 30

Vehicles Land cruisers (long wheel base) 3 38 - - 3 38 76

Total 146 55 280 481 -8-S5- AM 2

INDONESIA

SEVENTEENTHIRIiGATION PROJECT:

ESAT JAVA PROVINCE

Co odlty Price Pro1ection

1981 1985 1990

Rice/Paddy impart price, Thai 5T btrokn, f.o.b. bangkck 530 618 638 Qeality dicoast 1Oi /c -53 -62 -64 Freight A ienBrance +25 +25 +25 CIF Jakarta 502 582 599 Pert ha.dliig strorge +10 +10 +10 Trenspcrt to eh1.eoalete centrel Java /b +49 +49 +49 Trae port mill tc hc1oco-lers central Javo /b -43 -43 -43 Price ex =ill preject .... 518 597 615 Paddy eqcicalert: 637 conversien 326 376 387 Mlilleg Ceret aa. vole of byprcdaeto -6 -6 -6 Drying 4 cieaning -3 -3 -3 Marketieg 6 haodlieg to ciii -10 -10 -10 F.a_gale price 307 357 368 '200 rpt/ton 192 223 230 (FiPancial price '000 rpc/too) (105) (121) (124) moice FOB Jakarta/Surhabay /c 174 236 241 Pert hndlieg aed sttorge 5 -5 -5 Whelcealera te pert /d -17 -17 -17 Transpert, efrato ohlcoolers. -8 -8 -8 Farag.te price 144 206 211 '000rpa/ton 90 129 132 (Finacial price '000 rpo/ton) (100) (150) (137)

enpert price, f.o.b. U1.S. Golf pert /c 328 591 466 Freight A Iocurnoee +35 +35 +35 CIF Joklarto/ernbhya 363 426 501 Pert handling aed sierage +5 +5 +5 Raggieg +10 +10 +10 Tranaprt te =helesalerF +25 +25 +25 Troeepert,cerketkeg, farer Co =helenale -20 -20 -20 Fa-agaic price 383 446 521 '000 rpt/ton 239 279 326 (Fie..c.ai prior '000 rpt/tcn) (3)00 (350) (410)

G;roundnutF Espert price, t.o.b. Yigcria /f 646 694 756 FOB Jckorto/ierhbayc 2 661 709 771 Pert handling A et-rair -10 -10 -10 Whelesaler to pert -IS -15 -15 Marketleg and handlllg fa_ner to helcsaler -10 -10 -10 Fa:gate price 626 674 736 '000 rpt/ton 391 421 460 (Fina-lal price '000 rp./ton) (400) (430) (471) Urea FOB Poleshabg /h 254 312 327 Baeging aed shipping to Ea-t Jaca +15 +15 +15 Hendlieg & diotribhtle tto retoil Ircel +25 +25 +25 Tracspert tc fare +4 +4 +4 Faregate price j/ton 298 356 571 0ooO rpa/cee 186 223 232 (Financlal price '000 rpo/ecn) ( 70) ( 80) ( 90) TSP 7OeBUS (Florlda) 208 251 254 Freight 6 ineerance Ce Sora a6a +0 +60 +60 Pert haodling and diotribhtien to retail 1evel +25 +25 +25 tr_esp"r, to fare +4 +4 +4 FPreg.te price l.te. 297 340 343 '000 rps"ton 186 213 214 (Financial price '000 rp/tcon) C 70) ( g0) ( 90) Insecticide Faregate price 1,000 1,000 1,000 '900 rpt/ton 6,500 6 500 6,500 (Financial price '000 rps/i-c) (1 250) (1,250) (1,250) PorchaBed Soed /i Vice: Foregate price LOS$/kg 0.307 0.357 0.368 rps/kg 192 223 230 (Fincncial price rpa/kg) (210) (250) (250) Matze: Far,gate price 15/kg 0.144 0.206 0.211 rpe/kg 90 129 132 (Financial price rpe/kg) (150) (200) (220) S.ybheo: Faregate price US$/kg 0.363 0.446 0.521 rpn/kg 239 279 326 (Financiol price rpe/kg) (350) (390) (450) Groundnuts: Par=gate price "SS/kg 0.626 0.674 0.736 rps/kg 391 421 460 (Financial price rps/kg) (450) (480) (525)

/a Quality dincoet of (0% reprvotnent ipert potterne In rho post and eay be rcnerrvarie fee the ftetre, since there is littie lea qudlity rice cn the International coarker. /b Iecersol trantport rates. arc eastl..d tc he Sf.12/te/k.I. Correct BULOGrttes are 50.08/ton bue the dc tescicprice of fael is coder 50% of ehe InteroaeIonal price. /C Indonesia is a expotter-argicol of seice. The FOB price qeoted in the werld FOR price plus a 115 tranaport preieie for Aeian earkets. /d Avecage distarce port to whelesalec 200 km p1ut handling caste. 7; Equol to standard price prejectiecs, ci.f. Rctterdoe, inins$20/eon insuranceand freight free Gulf port to Retterdom. /f Eqoal to tandard price projections, c.i.f. Etropc, aioes )30/t.n iroor- aoce and freight free Nigeria te Eurcpe. L NigerLa price adj.aeed upeard $15/n to retflect transpcrt prealui fle Atlan corkers. /h FOB Palemhcab it FO sarld price adjeoted for tranaport preatan of 515. 7? The ncnoni.c price co ceed isequlvalent to the ecosnecicVeregate price of the product, asueiing thateit the project incre.eed areaard produetion of seed ill bh at the cast of either importn or enportt of the relevant productse. Footnotes: NB. AL1 pcice- are Onpretsed in c-ntent e-d 1981 US dllars. Thee they cre slightly highee then current qeoted pricec tar mid-1981. Exchange rate: rps 6251)1. In the ahesene at altersative infnrea- tion, finoncial price_ are ossoand to rise at thenam rcteaa ecoeaeic prices. ANNEX 2 - 86 - Table 2

INDONESIA

SEVEENTEEN'TH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Summary of Commodity and Input Price Projections, 1981-90 /a (1981 constant Rp)

1981 1985 1990 Econ- Finan- Econ- Finan- Econ- Finan- omic cial omic cial omic cial

Crops (Rp/kg) Rice 192 105 223 121 230 124 Maize 90 100 129 150 132 137 Soybean 239 300 279 350 326 410 Groundnut 391 400 421 430 460 471

Seeds (Rp/kg) Rice 192 210 223 250 230 250 Maize 90 150 129 200 132 220 Soybean 239 350 279 390 326 450 Groundnut 391 450 421 480 460 525

Inputs (Rp/kg) Urea 186 70 223 80 232 90 TSP 186 70 213 80 214 90 Pesticide 6,500 1,250 6,500 1,250 6,500 1,250

Farm Labor (Rp/day) Animal 1,500 1,500 1,500 1,500 1,500 1,500 Land preparation 350 700 350 700 350 700 Planting 250 500 250 500 250 500 Crop management 350 700 350 700 350 700 Harvesting 400 800 400 800 400 800 Post-harvest 350 700 350 700 350 700 Average 350 700 350 700 350 700

Diesel Fuel (Rp/liter) 187 53 215 60 248 70

/a Derived in Annex 2, Table 1. ANNEX 2 - 87- Table 3

INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Groundwater Subproject

Physical Inputs. Input Costs and Farm Revenues Per Crop Per Hectare La With & Without the Project. 1981 and 1990

Wet season rice Dry season rice Soybean Maize Groundauts Cost Cost Cost Cost Cost Inputs (000 rps/ha) Inputs (000 rps/ha) Inputs (000 rps/ha) Inputs (000 rps/ha) Inputs (000 rps/ha) /ha Eco. Fin. /ba Eco. Fin. /ha Eco. Fin. /ha Eco. Fin. /ha Eco. Fin.

PRESENT PATTERN 1981 Cash Inputs (kgs) Urea 200 37.2 14.0 150 27.9 10.5 - - - 150 27.9 10.5 TSP 50 9.3 3.5 50 9.3 3.5 ------Pesiticide 2 13.0 2.5 2 13.0 2.5 - - - 1 6.5 1.2 Seed 30 5.8 6.3 30 5.8 6.3 40 9.6 14.0 30 2.7 4.5 100 39.1 45.0

Subtotal 65.3 26.3 56.0 22.8 9.6 14.0 37.1 16.2 39.1 45.0

Labor (nan-days) Land preparation (team-days) 20 30.0 30.0 15 22.5 22.5 ------Lanld preparation (man-days) ------10 3.5 7.0 10 3.5 7.7 10 3.5 7.0 Planting 40 10.0 20.0 40 10.0 20.0 20 5.0 10.0 20 5.0 10.0 20 5.0 10.0 Cultivation 55 19.0 38.5 55 19.0 38.5 40 14.0 28.0 20 7.0 14.0 40 14.0 28.0 Harvest 40 16.0 32.0 40 16.0 32.0 30 12.0 24.0 10 4.0 8.0 40 16.0 32.0 Post harvest handling 15 5.0 10.0 15 5.0 10.0 15 5.0 10.0 25 9.0 18.0 20 7.0 14.0

170 80.0 (130.5) 72.5 (123.0) 39.5 (79.0) 28.5 (57.7) 45.5 (91.0) Hlired Labor: 30% of Total 39.0 37.0 24.0 17.3 27.3

Total Input Costs 145.3 65.3 128.5 59.8 49.1 37.7 65.6 33.5 84.6 72.3

Tield and Gross revenues (3,500) (672.0) (368.0) (3,000) (576.0) (315.0) (700) (167.0) (210.0) (1,800) (162.0) (180.0) (800) (313.0) (320.0) (kgs/ha and rps/ha)

Niet Revenue per ha (526.7) (302.7) (447.5) (255.2) (117.9) (172.3) (96.4) (146.5) (228.4) (247.7)

PUTURE WITHOUT PROJECT 1990 Cash Inputs (kgs) Urea 200 46.4 18.0 150 34.8 13.5 50 11.6 4.5 200 46.4 18.0 25 5.8 2.2 TSP 50 10.7 4.5 50 10.7 4.5 50 10.7 4.5 - - - 50 10.7 4.5 Pesticide 2 13.0 2.5 2 13.0 2.5 2 13.0 2.5 1 6.5 1.2 2 13.0 2.5 Seed 30 6.9 7.5 30 6.9 7.5 30 9.7 12.3 25 3.2 5.5 80 36.8 42.0

Subtotal 77.0 32.5 65.4 28.0 45.0 23.8 56.1 24.7 66.3 51.2

Labor (nan-days) Lanid preparation (team-days) 20 30.0 30.0 15 22.5 22.5 ------Land preparation (nan-days) ------10 3.5 7.0 10 3.5 7.0 10 3.5 7.0 Planting 40 10.0 20.0 40 10.0 20.0 20 5.0 10.0 20 5.0 10.0 20 5.0 10.0 Cultivation 55 19.0 38.5 55 19.0 38.5 40 14.0 28.0 20 7.0 14.0 40 14.0 28.0 Harvest 40 16.0 32.0 40 16.0 32.0 30 12.0 24.0 10 4.0 8.0 40 16.0 32.0 Post harvest handling 15 5.0 10.0 15 5.0 10.0 15 5.0 10.0 25 9.0 18.0 20 7.0 14.0

80.0 130.5 72.5 (123.0) 39.5 (79.0) 28.5 (57.0) 45.5 (91.0) ltired Labor: 30% of Total 39.0 37.0 24.0 17.0 27.0

Total InPut Costs 157.0 71.5 137.9 65.0 84.5 47.8 84.6 41.7 111.8 78.2

Yield and Gross revenues (3,500) (805.0) (434.0) (3,000) (690.0) (372.0) (800) (261.0) (328.0) (2.000) (264.0) (274.0) (900) (414.0) (424.0)

Uet Revenue per ha (648.0) (362.5) (552.1) (307.0) (176.5) (280.2) (179.4) (232.3) (302.2) (345.8)

FUTURE WITH PROJECT 1990 Cash Inputs (kgs) Urea 250 58.0 22.5 250 58.0 22.5 50 11.6 4.5 200 46.4 18.0 25 5.8 2.2 TSP 75 16.0 6.8 75 16.0 6.8 50 10.7 4.5 - - - 50 10.7 4.5 Pesticide 2 13.0 2.5 2 13.0 2.5 2 13.0 2.5 1 6.5 1.2 2 13.0 2.5 Seed 25 5.8 6.2 25 5.8 6.2 30 9.7 12.3 25 3.2 5.5 80 36.8 42.0

Subtotal 92.8 38.0 92.8 38.0 45.0 23.8 56.1 24.7 66.3 51.2

Labor (nan-days) Land preparation (team-days) 20 30.0 30.0 15 22.5 22.5 ------Land preparation (nan-days) ------15 5.2 10.4 15 5.2 10.4 15 5.2 10.4 Pla.ting 40 10.0 20.0 40 10.0 20.0 20 5.0 10.0 20 5.0 10.0 20 5.0 10.0 Cultivation 55 19.0 38.5 55 19.0 38.5 40 14.0 28.0 20 7.0 14.0 40 14.0 28.0 Harvest 40 16.0 32.0 40 16.0 32.0 30 12.0 24.0 10 4.0 8.0 40 16.0 32.0 Post harvest handling 15 5.0 10.0 15 5.0 10.0 15 5.0 10.0 25 9.0 18.0 20 7.0 14.0

80.0 (130.5) 72.5 (123.0) 41.2 (82.4) 30.2 (60.4) 47.2 94.4 Hired Labor: 30% of Total 39.0 37.0 - 24.7 18.1 28.3

Iotal Input Costs 172.8 77.0 165.3 75.0 86.2 48.5 86.3 42.8 113.5 79.5

Yield and Gross revenues (4.000) (920.0) (496.0) (4,000) (920.0) (496.0) (900) (293.0) (369.0) (2.300) (304.0) (315.0) (1.000) (460.0) (471.0) (kgs/ha and rps/ha)

Net Revenue per ha (747.2) (419.0) (754.7) (421.0) (206.8) (320.5) (217.7) (272.2) (346.5) (391.5)

/a All financial and economic estimates in 1981 currency values. See Annex 2, Tables 1-2. INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Groundwater Subproject

Cropping Pattern Changes and Revenue Increases per Hectare With and Without the Project, 1990 /a (1981 currency values)

1990 without project 1990 with project Cropping Revenue Costs Net revenue Cropping Revenue Costs Net revenue Net revenue increase pattern Yield Econ. Fin. Econ. Fin. Econ. Fin. pattern Yield Econ. Fin. Econ. Fin. Econ. Fin. Econ. Fin. Econ. Fin. (ha) /b (tons/ha) ------(Rp'000/ha) ------(ha) /b (tons/ha) ------(Rp'OOO/ha) ------(Rp'OOO/ha) - ($/ha) --

Kediri-Nganjuk Wet season 1.0 R 3.5 805 434 157 72 648 362 1.0 R 4.0 920 496 173 77 747 419

Dry season 0.5 M 2.0 132 137 42 21 90 116 1.0 R 4.0 920 496 165 75 755 421 0.5 S 0.8 130 164 42 24 88 140 0.5 M 2.3 152 157 43 21 109 136 0.5 S 0.9 147 185 44 24 103 161

Subtotal 1,067 735 241 117 826 618 2,139 1,334 425 197 1,714 1,137 888 519 1,421 830

East Java Wet season 1.0 R 3.5 805 434 157 72 648 362 1.0 R 4.0 920 496 173 77 747 419

Dry season 0.5 G 0.9 2n7 212 106 39 101 173 1.0 R 4.0 920 496 165 75 755 421 1 0.5 S 0.8 130 164 42 24 88 140 0.5 G 1.0 230 235 57 40 173 195 m 0.5 S 0.9 147 185 44 24 103 161 0

Subtotal 1,142 R10 305 135 837 675 2,217 1,412 439 216 1,778 1,196 941 521 1,506 834

Madiun Wet season 1.0 R 3.5 805 434 157 72 648 362 1.0 R 4.0 920 496 173 77 747 419

Dry season 0.5 R 3.0 345 186 69 33 276 153 1.0 R 4.0 920 496 165 75 755 421 0.5 S 0.8 130 164 42 24 88 140 1.0 S 0.9 293 369 87 49 206 320

Subtotal J 1,280 784 268 129 1,012 655 2,133 1,361 425 201 1,708 1,160 696 505 1,113 808

Net revenue increase per 0.4-ha farm

Kediri-Nganjuk 355 208 568 332 East Java 376 208 602 334 Madiun 278 202 445 323

la Crop budget data derived from Annex 2, Table 3.

/b R - rice, M - maize, S - soybean, G - groundnut. -89 - ANNEX 2 Table 5 INDONESIA

SEVENTEENTH IRRIGATION PROJECT

EAST JAVA PROVINCE

Groundwater Subproject

Cost and Benefit Streams ($'000) /a

Materials Consultants P2AT Total Replacement Opera- Opera- Incre- and Drill- Civil and over- capital and rig ting tional Total mental Net Year equipment/b ing/b works/b training/b beads/b costs rental /c costs/d overheads costs benefits/f benefits /e

1982/83 11,180/g 638 1,331 1,430 560 15,139 86 106 40 15,371 0 (15,371) 1983/84 1,790 1,265 2,375 1,480 560 7,470 143 515 80 8,208 1,040 (7,168) 1984/85 3,690 858 1,529 1,480 560 8,117 160 1,014 120 9,411 3,550 (5,861) 1985/36 847 1,353 560 8,760 183 1,514 160 4,617 6,160 1,543 1986/87 1,078 1,628 560 3,266 164 1,934 200 5,564 10,190 4,626 1987/88 50 2,207 220 2,477 13,420 10,943 1988/89 50 2,207 220 2,477 14,940 12,463 1989/90 50 237 2,207 220 2,714 16,630 13,916 1990/91 50 515 2,207 220 2,992 16,630 13,638 1991/92 50 630 2,207 220 3,157 16,630 13,473 1992/93 50 656 2,207 220 3,133 16,630 13,527 1993/94 50 884 2,207 220 3,361 16,630 13,269 1994/95 50 635 2,207 220 3,112 16,630 13,518 1995/96 50 642 2,207 220 3,119 16,630 13,511 1996/97 50 783 2,207 220 3,260 16,630 13,370 1997/98 50 966 2,207 220 3,443 16,630 13,187 1998/99 50 514 2,207 220 2,991 16,630 13,639 1999/2000 50 680 2,207 220 3,151 16,630 13,474 2000/01 50 656 2,207 220 3,133 16,630 13,497 2001/02 50 884 2,207 220 3,361 16,630 13,269 2002/03 50 635 2,207 220 3,112 16,630 13,518 2003/04 50 642 2,207 220 3,119 16,630 13,511 2004/05 50 783 2,207 220 3,260 16,630 13,370 2005/06 50 966 2,207 220 3,443 16,630 13,187 2006/07 50 514 2,207 220 2,991 16,630 13,629 ERR = 24.1X

/a 1990 economic relative prices in 1981 constant USS. 7b 80% of values in Annex 1, Tables 5a, 5b, 5c and 5d as the consultants will be plan and design for an additional 7,000 ha not incluided in project area. /c Incltudes replacement of engines every 8 years, pumps every 12 years and half of the workshop equipment every 10 years. Also includes imputed opportunity costs of using rigs, at approximately US$2,000 per production well and US$1,000 per exploratory well. /d Operating costs per well are given in Annex 1, Table 11. Costs build up with phased installation of wells, given in Annex 1, Table 12. Costs do not include administration and overheads. /e 10% of final operating costs. 77f Incremental benefits derived from phasing of well development (Annex 1, Table 12), calculation of net benefits per ha served (Annex 2, Table 4), and assumed achievement of zero, 50%, 50%, and 100% of full net benefits over the first four years respectively of development of each well. /g Includes imputed cost of USS750,000 for workshop and equipment, and procurement of pump sets, screens and casings under Loani 1434-INT) (Irrigation VIII). ANNEX 2 Table 6 - 90 -

INDONESIA

SEVENTEEN IRRIGATION PROJECT:

EAST JAVA PROVINCE

Rehabilitation Subproject - Tanggul Scheme

Supplementary Crop Budgets /a (1990 relative prices in 1981 Rp)

Irrigated Maize Rainfed Maize Cassava Inputs Cost Inputs Cost Inputs Cost Cash Inputs (ha) ('O°° Rps/ha) (ha) (°000 Rps/ha) (ha) ('000 Rps/ha) Econ. Fin. Econ. Fin. Econ. Fin.

Urea (kg) 120 29.8 10.8 50 12.4 4.5 - - - Pesticide (kg) 0.5 3.3 0.6 - - - - - _ Seed (kg) 25 3.2 5.5 25 3.2 5.5

Subtotal 36.3 16.9 15.6 10.0 - - -

Labor (man-days) Land preparation 10 3.5 7.7 10 3.5 7.7 10 3.5 7.7 Planting 20 5.0 10.0 20 5.0 10.0 30 7.5 15.0 Cultivation 20 7.0 14.0 20 7.0 14.0 5 1.8 3.5 Harvesting 10 4.0 8.0 10 4.0 8.0 20 8.0 16.0 Post harvest handling 25 9.0 18.0 25 9.0 18.0 30 10.0 20.0

Subtotal 85 28.5 (57.7) 85 28.5 (57.7) 95 30.8 (62.2)

Hired labor (30% of total) 17.3 17.3 n.a.

Total Input Costs 64.8 34.2 44.1 27.3 30.8 -

Yield and gross revenues (kgs/ha and Rps/ha) 1,700 224.4 232.9 1,200 158.4 164.4 6,000 150.0 150.0

Net revenue per ha 159.6 198.7 114.3 137.1 119.2 150.0

/a Certain agricultural parameters differ substantially between the Tanggul scheme in the mountainous region of East Java and the groundwater component areas for which crop budgets are presented in Annex 2, Table 3. Specifically, subsistence cassava is an important crop in the unirrigated portions of Tanggul, and yields and standards of husbandry of maize are lower. - 91 - ANNEX 2 Table 7 INDONESIA

SEVENTEENTHIRRIGATION PROJECT:

EAST JAVA PROVINCE

Rehabilitation Subproject - Tanggul Scheme /a

Cropping Patterns and Water Usage in the Early Dry Season

Total Unit Land Use Total crop Total water water Irrigated Irrigated Rainfed irrigation Field water area usage usage paddy polowijo polowijo requirement wastage (ha) (uls) (1/s/ha) (ha) (ha) /b (ha) /c (1/s) /d (l/s) /e % /f

Present Situation

Ng block Ng. 1 13 50 3.8 13 - - 18 32 64 Ng'. 2 & 3 86 150 1.7 46 40 - 80 70 47

Subtotal 99 200 2.0 59 40 - 98 102 51

Ke block Irrigated portions 300 300 1.0 105 195 - 225 75 25 Unirrigated portions 50 - - - - 50 - - -

Subtotal 350 300 0.9 105 195 50 225 75 25

Ta block 34 80 2.4 27 7 - 41 39 49

Gu block Irrigated portions 60 100 1.7 24 36 - 48 52 52 Unirrigated portions 144 - - - - 144 - - -

Subtotal 204 100 0.5 24 36 144 48 52 52

Total Scheme 687 680 1.0 215 278 194 412 268 39

Projected Future Situation Without Project same us above except for:

Ng. 2 & 3 86 150 1.7 26 60 - 60 90 60 Ke irrigated portions 300 300 1.0 50 250 - 170 130 43

Total Scheme 687 680 1.0 140 353 194 337 343 50

Projected Future Situation with Project

Ng block 99 150 1.5 59 40 - 98 52 35 Ke block 350 310 0.9 140 210 - 280 30 10 Ta block 34 60 1.8 27 7 - 41 19 32 Gu block Currently irrigated portions 60 70 1.2 30 30 - 54 16 23 Current:ly unirrigated portions 144 90 0.6 22 122 - 80 10 11

Subtotal Gu block 204 160 0.8 52 152 - 134 26 16

Total Scheme 687 680 1.0 278 409 - 553 127 19

/a Detailed map and schematic diagrams of Tanggul Scheme available in project file (Annex 4, Reference F). 7T Consisting of 50% soybeans (0.9 tons/ha yield) and 50% maize (1.7 tons/ha yield). 7T Consisting of 50% cassava (6.0 tons/ha yield) and 50% maize (1.2 tons/ha yield). 7- Basedl on diversion requirements (including conveyance losses) of 1.4 1/s/ha for paddy and 0.4 1/s/ha for irrigated polowijo. /e Derived by subtracting seventh column from second column. 7T Derived by dividing eighth column by second column. ANNEX 2 92- Table 8

INDONESIA

SEVENT'EENTHIRRIGATION PROJECT:

EAST JAVA PROVINCE

Rehabilitation Subproject - Tanggul Scheme

Calculation of Net Benefits at Full Development

Land Use Category /a Irrigated Irrigated Polowijo Rainfed Polowijo Total Paddy Soybeans Maize Cassava Maize

Present (ha) 2L5 139 139 97 97 687 With project (ha) 278 205 204 - - 687 Without project (ha) 140 177 176 97 97 687

Increment (ha) +138 +28 +28 -97 -97 0

Net economic return per ha ('000 Rp) 754.7 /b 206.8 /b 159.6/c 119.2 /c 114.3 /c

Total incremental benefits /d (million Rp) +104.15 +5.79 +4.47 -11.56 -11.09 +91.76 ('000 US$) +166.6 +9.2 +7.2 -18.5 -17.7 +146.8

Agricultural yields (tons/ha) 4.0 0.9 1.7 6.0 1.2

Incremental agricultural production (tons) /e +552 +25 +48 -582 -116 (-68 net)

/a Land use projections based on Annex 2, Table 7.

/b Derived in Annex 2, Table 3.

/c Derived in Annex 2, Table 6.

/d Derived by multiplying incremental hectarage in each category by net revenue per ha (the two rows above).

/e Derived by multiplying incremental hectarage in each category by agricultural yields. ANNEX 2 - 93 - Table 9

INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Rehabilitation Subproject - Tanggul Scheme

Economic Rate of Return Calculation

Net Costs Benefits Benefits - (1981 US$ 000) …

Year 1 Survey and design of main system for rehabilitation la (US$50/ha by 687 ha) -34 -34

Year 2 Main system construction /b -273 Design of tertiary networks /a (US$25/ha by 687 ha) -17 -290

Year 3 Construetion of tertiary networks /c -134 Achievement of 25% of full development benefits /d +37 -97

Year 4 Incremental O&M expenditures of US$3/ha by 687 ha -2 Achievement of 75% of full development benefits /d +110 +108

Year 5 Incremental O&M expenditures of US$5/ha by 687 ha -3 Achievement of 100% of full development benefits Id +147 +144

Years 6-17 /e Similar to Year 5 +144

ERR = 25%

/a While this work is largely completed for this sample scheme, these costs have been included for purposes of applicability to other schemes.

/b Detailed costings given in Annex 4, Reference A, Vol. 2, pp. 4.31-4.33.

/c Based on average per ha costs determined for project area in Annex 4, Reference A, Vol. 2, Chapter 3.

/d See Annex 2, Table 8.

/e Assumed length of life of project works is 15 years. ANNEX 2 Table 10 - 94 -

INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Grouindwater Subproject

Net Farm Incomes /a (1981 US$)

Future Future without with Present project project Increment Component (1981) (1990) (1990) $ %

Kediri-Nganjuk Representative family income 296 396 728 332 84 (Per capita) lb 54 72 132 60

East Java Representative family income 328 432 765 333 77 (Per capita) /b 60 79 139 60

Madiun Representative family income 331 419 742 323 77 (Per capita) /b 60 76 135 59

/a Based on representative 0.4 ha farms and financial crop budgets presented in Annex 2, Table 3.

/b Assuming average family size of 5.5 people. ANNEX 2 - 95 - Table 11

INDONESIA

SEVENTEENTHIRRIGATION PROJECT:

EAST JAVA PROVINCE

RehabilitationSubproject - Tanggul Scheme

Net Farm Incomes /a

Cropping patterns /b Ri - PR Rl - PI Rl - R2 R1- R2 -PI Total

Net farm income (US$) /c 360 435 538 704

Per capita income (US$) /d 65 79 98 128

Present frequency(%) /e 28 41 23 8 100

Future frequencywithout project (%) /e 28 52 16 4 100

Future frequencywith project (%) /e - 60 28 12 100

FeaLsibleincremental farm income (US$) 75-178/f 103/g 166/h -/i (%) (21-49) (24) (31)

/a Assuming average farm size of 0.4 ha, and scenario outlined in Annex 2, Table 7. /b Rl = wet-season rice; R2 = dry-season rice; PR = rainfed polowijo; PI = irrigatedpolowijo. /c Utilizing1990 relative prices in 1981 currency values. Based on Annex 2, Tables 3 and 6. /d Assuming average family size of 5.5 people. 7e Based on Annex 2, Table 8. Frequency refers to land areas. 7T All farmers now in this category would benefit,moving up at least one category and the remaining two categories. j At least 22% of farmers now in this category would move up one category. 7h At least 17% of farmers in this category would be likely to move up one category. /i The project could provide no improvementfor farmers now in this category. ANNEX 3 -96 - Table 1

INDONESIA

SEVENT'EENTHIRRIGATION PROJECT

EAST JAVA PROVINCE

Required District Level Engineering Staff for Rehabilitation Program

------Districts Mojokerto/ Malang Kediri Jombang Madura Total

Senior Resident Engineer 1 1 1 1 4 Design Engineer 1 1 1 1 4 Assistant Engineer 1 1 1 1 4 Field Engineer 1 1 1 1 4 Construction Engineer 1 1 1 1 4 Assistant Construction Engineer 1 1 1 - 3 Surveyors 4 4 3 3 14 Draftsmen 5 5 3 4 7 Inspectors 20 16 12 14 62 Field Assistant 10 8 6 7 31 97 ANNEX 3 Table 2

INDONESIA

SEVENTEENTH IRRIGATION PROJECT

EAST JAVA PROVINCE

Available EJIS Staff Compared with Rehabilitation Subproject Requirements

I. Staff Availability by Grades

Technicians (draftsmen, Civil Engineers Civil Engineers surveyors, (Ir. Degrees) (B.I.E. Degrees) inspectors)

A. Present EJIS Staffing 1. East Java Design Unit, Surabaya (engaged in O&M, Rivers, and Hydro- logy sections, Waru-Turi and Sedang Kecil projects, etc.) 25 30 51

2. Lodoyo Project 7 4 61

3. Pekalen-Sampean Project (seconded to Jember office of PROSIDA) 4 4 -

4. Brantas Project I - -

5. Irrigation District Offices 1 54 708

Total 38 92 820

B. Estimated Availability of EJIS Staff for Rehabili- tation, 1982-83 1. From present staffing: 12 16 36

2. Recruitment in progress: 2 11 -

Total 14 27 36

C. Estimated Availability of EJIS staff for Rehabilitation, 1983-84 1. From present staffing: 15 20 99 2. Recruitment in progress: 2 11 - 3. Planned future recruitment: - 2 -

Total 17 33 99

II. Total Rehabilitation Staff Recruitments by Grades

Managerial Senior Assistant Engineers Engineers Engineers Technicians

1. Project Office 3 7 7 17 2. District Offices - 4 19 124

Total 3 11 26 141

Source: Annex 4, Reference A, Vol. 1, pgs. 65-70. ANNEX 3 - 98 - Table 3

INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Functional Responsibilities for Rehabilitation Engineering

Project Foreign Local Task staff (EJIS) consultant consultant

Overall planning, programming and budgeting 100% advice

Ranking studies (with project counterparts) assistance 100%

Survey and investigations for the main systems supervision 20% 80%

Tender designs for main systems supervision 80% 20%

Tertiary surveys, mapping and designs supervision advice 100%

Working drawings and checking of as-built drawings supervision 20% 80%

Specification, bills of quantities and costs supervision 50% 50%

Tender documents, evaluation and contracts 100% advice advice

Setting-out of tertiary system and checking supervision - 100%

Construction supervision 100% advice

Preparation of DP Manuals and O&M guidelines supervision 80% 20%

Training of project staff and local consultants staff participation 100 participation

Source: Consultant Terms of Reference, Annex 4, Reference D. ANNEX 3 99 Table 4

INDONESIA

SEVENTEENTH IRRIGATIONPROJECT:

EAST JAVA PROVINCE

Ground Water Subproject

Full Project Staffing

No. of staff Surabaya Madiun

Project Administration Project Manager 1 1 Deputy Manager 1 -

Hydrogeology/GroundwaterEngineering Professionals 6 4 Technicians 12 8

Irrigation/WaterManagement Professionals 5 4 Technicians 10 7

Agriculture/Economics Professionals 3 2 Technicians 8 5

Drilling Professionals 4 5 Technicians 40 20

Mechanical Engineering Administrative 9 5 Technicians 73 20

Financial/Accounting Administrative 4 4 Staff 6 6

Totals Professionals 33 25 Technicians 149 66

Note: Excludes unskilled staff. ANNEX 3

- 100 -

INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Operation and Maintenance Subproject

Output of Subsection Labor Gangs, Jember Section, 1980

Bank sodding Grass Silt and Month cutting excavation Embankment grassing (000 sq m) (cu m) (cu m) (cu m)

January 41 276 143 33 February 66 369 172 12 March 40 527 201 10 April 10 509 271 May 35 533 191 June 46 221 39 July 35 491 64 August 25 520 62 September 80 734 166 October 24 498 1,784 13 November 34 326 198 700 December 41 513 202

Total 477 5,517 3,493 768

Source: EJIS records. - 101 - ANNEX 4

INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Statements of Expenditure

1. Statements of expenditure will be used for Bank and IFAD disbursements against the following:

Item Loan amount ($ million) Civil works contracts costing less than $320,000 equivalent under the rehabilitation subproject 10.2

Civil works, drilling and installation contracts under the groundwater subproject 3.3

Civil works for the upgrading of O&M subproject 5.0

Training (IFAD only) 0.5

2. Civil works for rehabilitation, groundwater drilling and installation will be procured through a number of small contracts because of the nature of the work. The contracts, and evidence of payment will be held by EJIS (rehabilitation) and P2AT (groundwater). Disbursements will be made against quarterly statements of expenditure submitted by DOI (on behalf of EJIS) and P2AT summarizing progress payments made against such contracts, accompanied by a certification by DOI and P2AT that the work has been properly carried out.

3. Civil works for the upgrading of operation and maintenance will be partly contracted, and partly performed under force account, by EJIS. Con- tract and payment documentation will be held by EJIS. Quarterly statements of expenditures will be submitted by DOI (on behalf of EJIS) which will also certify that force account work has been properly done and charged.

4. Although DOI has not previously been engaged in Bank operations, it has close links with PROSIDA and PIBD which have extensive experience of the Bank, and which will assist DOI during project implementation. All statements of expenditure will be subject to auditing requirements established for the project; and the supporting documentation will be checked from time to time through routine Bank supervision activities. - 102 - ANNEX 5

INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Project File References

A. East Java Irrigation Rehabilitation Study, Two Volumes, April 1981. Prepared for East Java Irrigation Service by consultants Sir M. Macdonald and Partners Asia and P.T. Indah Karya Cabang Surabaya.

B. Eksploitasi Irigasi Jawa Timur, Laporan Tahunan 1979/80, July 1980. (Irrigation Operations in East Java, Annual Report 1979/80.) Prepared by East Java Irrigation Service, Public Works Department, East Java Province.

C. East Java Irrigation Operation and Maintenance, Six Volumes, January 1981. Prepared for Directorate General of Water Resources Development by Sir M. Macdonald and Partners.

D. Consultant Terms of Reference, Rehabilitation and Operation and Maintenance Subproject.

E. Consultant Terms of Reference, Groundwater Subproject.

F. Irrigation Scheme Map (1:10,000 scale) and schematic diagrams, Tanggul Scheme (Malang District, Kasri Section, Bangil Subsection), East Java Irrigation Service.

G. East Java Groundwater Surve:, Three Volumes, December 1979. Prepared for P2AT by Sir M. Macdonald and Partners and Hunting Technical Services, Ltd. under assigwnent by British Overseas Development Administration.

H. Report on Drilling Organization, July 1978. Prepared for P2AT by Binnie and Partners in association with Howley, Mason and Partners under assignment to British Ministry of Overseas Development.

I. Kediri Nganjuk Project Reports: Phase II Final Report, Three Volumes, July 1977. Phase 3A Interim Report, March 1980. Phase 3A Main Report, March 1981, supported by separate reports on groundwater (two volumes), mechanical aspects, economics, and agricultural aspects (three volumes). All prepared by Sir M. Macdonald and Partners in association with Hunting Technical Services, Ltd. for DGWRD.

J. Extension of Madiun-Solo Groundwater Pilot Schemes Project, November 1979, supplemented by additional and interim final reports, April 1981. Prepared by Electroconsult and Nippon-Koei Consultants for P2AT.

K. East Java Groundwater Project Presentation, and Monitoring of Dry Season Polowijo Planting, November 1980. Prepared by P2AT. INDONESIA

SEVENTEENTH IRRIGATION PROJECT:

EAST JAVA PROVINCE

Climatological Data

Project area/station/item Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year

East Java Mojosari Rainfall (mm) 307 243 301 151 123 21 10 1 34 41 153 258 1,643 Mean temperature (OC) 26.9 26.9 27.0 27.3 26.7 26.9 26.0 26.3 27.1 27.5 27.9 27.7 27.0 Evaporation (mm) 127 115 127 141 146 141 155 177 180 183 165 155 1,812

Kediri-Nganjuk Kediri Rainfall (mm) 321 278 311 200 161 46 41 22 21 67 134 250 1,831 Mean temperature (OC) 27.4 27.6 27.6 28.2 28.0 26.6 27.2 27.4 27.4 27.8 28.0 27.5 27.6 Evaporation (mm) 112 106 115 138 127 156 174 189 180 180 159 152 1,788

Madiun Purwodadi Rainfall (mm) 255 274 270 227 176 58 55 31 23 97 188 229 1,888 Iswahyudi Mean temperature (OC) 26.9 27.0 27.2 27.9 28.1 28.1 27.7 28.2 29.0 29.5 28.7 27.5 28.0 Madiun Evaporation (mm) 118 112 130 135 143 153 158 186 201 205 144 140 1,825

Source: EJIS records. These stations are representative of the major irrigated regions of East Java.

0" INDONESIA IRRIGATION PROEJCTXVII (EAST JAVA PROVINCE) Organizationof the DirectorateGeneral of WaterResources Development

MINISTER OF PUBLIC WORKS

ASSISTANTS TO MINISTER OF DIRECTOR-GENERAL OF PUBLICWORKS WATER RESOURCES FOR WATER RE- I DEVELOPMENT SOURCES DEVELOP- MENT (2)

SECRETARIAT DIVISION OF FOREIGN LOAN ADMINISTRATION

DIRETORAEOF DIRECTORATE OF

OF DIRECTORATE DIRRIRATI O H UL DIRECTORATE OF DIRECTORATE DIRECTORATE TION ENGINEERING PROGRAMMING PROGRAMMINGOF~~~[ RIVERS SWAMPS OF IRRIGATI jEQUIPMENT (DPMA)

PROJECT UNIT PROVINCIAL P2 AT FOR TIDAL SWAMP IRRIGATION RECLAMATION SERVICES

GENERAL MANAGER PROSIDA/PIBD

PR[SIDA PlOD

World Bank-23414 INDONESIA IRRIGATION PROJECT XVII (EAST JAVA PROVINCE) EAST JAVA PROVINCE IRRIGATION SERVICE

CHIEF OF IRRIGATION SERVICE

PROVINCIAL OFFICE HEAD ADMINISTRATION]

HEAD PLANNING HEAD OPERATION HEAD IRRIGATION HEAD RIVERS AND DESIGN AND MAINTENANCE DEVELOPMENT AND SWAMPS HEAD LOGISTICS ...... ^

DISTRICT OFFICE CHIEF OF DISTRICT (10) IDAERAH) (KEPALA DAERAH)

FADMINISTRATIONl

OPERATION AND MAINTENANCE IRRIGATION DEVELOPMENT HYDROLOGY/HYDROMETRY/WATER QUALITY

...... ,......

SECTION OFFICE CHIEF OF SECTION (36) (SEKSI) IKEPALA SEKSI)

g -| ~~~ADMINISTFRATION

OPERATION MAINTENANCE TERTIARY DEVELOPMENT ......

SUB-SECTION OFFICE CHIEF OF SUB-SECTION (181) (CABANG SEKSI) (PENGAMAT)

World Bank-23415 INDONESIA IRRIGATION PROJECTXVII (EAST JAVA PROVINCE) ImplementationSchedule

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MainSytenance

1MainstJv ell

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-2~ ~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~WrdBn-31 INDONESIA IRRIGATION PROJECTXVII (EAST JAVA PROVINCE) DESIGNSAND STUDIESSCHEDULE

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4 5 6 9 \Indn t12131l l l7l0 l78 1211 4 516 7 9111081101 11H 1 12 3 819102113H112134 516 7 89H l23l41213 5 6 71819td 8 941112 Fiscal Year 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 Fiscal Year 1982 1983 1984 1985 1986 1987 1988

ParigiPoso

Design(21 .000 ha)

F.S.(8,000 ha) + Design

KaliProgo

Sermo Dam

PolmasSidrap (23,000ha)

FeasibilityStudy and Design

World Bank - 23202

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