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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. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. I 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
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