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Northern Sumatra Irrigated Agriculture Sector Project Completion Report Project Number: 27361 Loan Number: 1579 May 2007 Indonesia: Northern Sumatra Irrigated Agriculture Sector Project CURRENCY EQUIVALENTS Currency Unit – Rupiah (Rp) At Appraisal At Project Completion 16 October 1997 10 April 2007 Rp1.00 = $0.000281 $0.0001 $1.00 = Rp3,555 Rp9,093 ABBREVIATIONS ADB – Asian Development Bank BAPPEDA – Badan Perencanaan Pembangunan Daerah (Regional Development Planning Agency) BAPPENAS – Badan Perencanaan Pembangunan Nasional (National Development Planning Agency) BIPP – balai informasi dan penyuluh pertanian (agricultural information and extension center) BME – benefit monitoring and evaluation CO – community organizer DAS – district agricultural services DCC – district coordination committee DGFC – Directorate General of Food Crops DGRD – Directorate General of Regional Development DGWR – Directorate General of Water Resources DWG – district working group DWRS – district water resources services EA – executing agency EIRR – economic internal rate of return ETESP – Earthquake and Tsunami Emergency Support Project FTF – farmer-to-farmer (training) FWUA – Federation of Water Users Associations IOMP – irrigation operation and maintenance policy IPM – integrated pest management ISF – irrigation service fee LCB – local competitive bidding MOA – Ministry of Agriculture MOHA – Ministry of Home Affairs MPW – Ministry of Public Works MUV – manufacturers’ unit value NAD – Nanggroe Aceh Darussalam NSC – national steering committee O&M – operation and maintenance PAS – provincial agricultural services PCC – provincial coordination committee PPL – penyuluh pertanian lapangan (agricultural field extension worker) PPMS – project performance monitoring system PWG – provincial working group PWRS – provincial water resources services R&U – rehabilitation and upgrading WUA – water users association NOTES (i) The fiscal year (FY) of the Government ended on 31 March until 2000 but now ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2005 ends on 31 December 2005. (ii) In this report, "$" refers to US dollars. Vice President C. Lawrence Greenwood, Jr., Operations Group 2 Director General A. Thapan, Southeast Asia Department (SERD) Country Director E. Cua, Indonesia Resident Mission, SERD Team leader B. Alimov, Environmental Economist, SERD Team member P.P. Wardani, Senior Project Officer, SERD CONTENTS Page BASIC DATA i MAP v I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 3 C. Project Costs 7 D. Disbursements 8 E. Project Schedule 8 F. Implementation Arrangements 8 G. Conditions and Covenants 9 H. Consultant Recruitment and Procurement 9 I. Performance of Consultants, Contractors, and Suppliers 10 J. Performance of the Borrower and the Executing Agency 10 K. Performance of the Asian Development Bank 10 III. EVALUATION OF PERFORMANCE 11 A. Relevance 11 B. Effectiveness in Achieving Outcome 11 C. Efficiency in Achieving Outcome and Outputs 11 D. Preliminary Assessment of Sustainability 12 E. Impact 12 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 12 A. Overall Assessment 12 B. Lessons 13 C. Recommendations 14 APPENDIXES 1. Project Framework and Outputs 15 2. Summary of Rehabilitation and Upgrading Works 23 3. Summary of Agricultural Support and Water Users Associations Strengthening 24 4. Summary of Project Costs 25 5. Utilization of Loan Proceeds 26 6. Project Implementation Schedule 27 7. Status of Compliance with Loan Covenants 28 8. Economic and Financial Analyses 34 BASIC DATA A. Loan Identification 1. Country Indonesia 2. Loan Number 1579 3. Project Title Northern Sumatra Irrigated Agriculture Sector Project 4. Borrower Republic of Indonesia 5. Executing Agency Directorate General of Water Resources 6. Amount of Loan $130,000,000 7. Project Completion Report Number 972 B. Loan Data 1. Appraisal – Date Started 21 July 1997 – Date Completed 14 August 1997 2. Loan Negotiations – Date Started 15 October 1997 – Date Completed 17 October 1997 3. Date of Board Approval 13 November 1997 4. Date of Loan Agreement 5 December 1997 5. Date of Loan Effectiveness – In Loan Agreement 13 November 1997 – Actual 23 February 1998 – Number of Extensions 0 6. Closing Date – In Loan Agreement 31 October 2004 – Actual 30 April 2006 – Number of Extensions 2 7. Terms of Loan – Interest Rate 0.75% per annum – Maturity (number of years) 26 years – Grace Period (number of years) 6 years 8. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 15 May 1998 8 September 2006 100 months Effective Date Original Closing Date Time Interval 23 February 1998 31 October 2004 80 months ii b. Amount ($ million) Category Original Last Amount Amount Undisbursed Allocation Revised Canceled Disbursed Balance Allocation 1. Civil Works 01A Part A 55.58 34.90 20.68 34.71 0.19 01B Part B 0.18 0.08 0.10 0.12 (0.04) 01C Part C 0.00 0.00 0.00 0.00 0.00 01D Part D 0.71 0.01 0.70 0.01 0.00 2. Equipment 02A Part A 1.30 0.91 0.38 0.90 0.01 02B Part B 0.56 0.85 (0.29) 0.84 0.01 02C Part C 0.06 0.09 (0.03) 0.08 0.01 02D Part D 0.12 0.30 (0.17) 0.28 0.02 3. Consulting Services 03A Part A 9.96 9.70 0.27 9.73 (0.04) 03B Part B 2.95 1.59 1.37 1.57 0.02 03C Part C 2.83 1.14 1.69 1.15 (0.01) 03D Part D 1.99 0.88 1.11 0.88 (0.01) 4. Survey and Investigation 04A Part A 11.49 2.00 9.49 2.01 (0.01) 04B Part B 0.11 0.09 0.01 0.08 0.01 04C Part C 1.20 1.08 0.12 0.80 0.28 04D Part D 0.36 0.19 0.17 0.18 0.01 5. Training 05A Part A 1.45 0.83 0.62 0.82 0.01 05B Part B 1.96 1.74 0.22 1.43 0.31 05C Part C 5.16 1.96 3.20 1.96 0.00 05D Part D 0.37 0.74 (0.37) 0.70 0.04 6. Interest During 21.23 7.48 13.75 5.74 1.74 Construction 7. Coordination and Monitoring 07A Part A 0.00 0.48 (0.48) 0.32 0.16 07B Part B 0.00 0.23 (0.23) 0.20 0.03 07C Part C 0.00 0.04 (0.04) 0.01 0.03 07D Part D 0.00 0.97 (0.97) 0.86 0.11 8. Unallocated 10.44 0.00 10.44 0.00 0.00 Total 130.00 68.24 61.76 65.38 2.86 ( ) = negative. Note: Totals may not be exact because of rounding. 9. Local Costs (Financed) - Amount ($ million) 30.9 - Percent of Local Costs 47.4 - Percent of Total Cost 29.2 iii C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 56.5 34.4 Local Currency Cost 160.5 72.0 Total 217.0 106.4 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 83.9 40.8 ADB Financed 108.8 59.7 Farmers 3.1 0.2 Total 195.8 100.7 IDC Costs Borrower Financed 0.0 0.0 ADB Financed 21.2 5.7 Total 217.0 106.4 ADB = Asian Development Bank, IDC = interest during construction. 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual A. Irrigation Improvement 145.5 78.2 B. Agriculture Support 7.2 4.7 C. Water User Associations Support 0.8 4.4 D. Strengthening Implementation Coordination 14.9 3.1 E. Recurrent Costs 9.9 1.7 F. Taxes and Duties 17.5 8.7 G. Interest During Construction 21.2 5.7 Total 217.0 106.4 Note: Totals may not be exact because of rounding. 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants Jan 1999 Sep 2002 Completion of Engineering Designs Jul 2001 Jun 2004 Civil Works Contract Date of Award Sep 2001 Jul 2003 Completion of Work Jul 2004 Dec 2005 Equipment and Supplies Dates First Procurement May 2001 Jun 2002 Last Procurement May 2004 Aug 2005 Completion of Equipment Installation May 2004 Sep 2005 Farmers’ Involvement in Civil Works Sep 2005 Start of Operations of Irrigation Systems Jan 2003 Jan 2004 iv 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From June 1998 to November 1998 Satisfactory Satisfactory From November 1998 to December 1998 Partly Satisfactory Satisfactory From January 1999 to June 1999 Satisfactory Satisfactory From July 1999 to November 2000 Partly Satisfactory Satisfactory From December 2000 to June 2003 Partly Satisfactory Partly Satisfactory From July 2003 to March 2004 Satisfactory Partly Satisfactory From April 2004 to September 2006 Satisfactory Satisfactory D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Membersa TA Fact Finding 2–9 Mar 1997 4 28 a, b, c, o TA Review Mission 10–13 Mar 1997 1 3 a Special TA Administration 7–11 Apr 1997 1 4 d Loan Fact Finding 28 Apr–9 May 1997 5 55 a, e, f, o, o Appraisal 22 Jul–13 Aug 1997 5 110 a, g, c, e, f Inception Mission 7–15 Dec 1998 3 24 h, i, j Special Project Administration 1 11–15 Dec 2000 2 8 h, h Special Project Administration 2 21–30 Mar 2001 2 18 h, j Review 1 11–22 Mar 2002 2 22 k, l Special Project Administration 3 23–26 Sep 2002 1 3 k Review 2 19–28 Nov 2002 1 9 k Review 3 20 May–5 Jun 2003 2 32 k, j Review 4 4–14 Nov 2003 3 30 k, j, m Review 5 3–14 Aug 2004 1 11 m Special Project Administration 4 11–13 Nov 2004 1 3 o Review 6 8–13 Aug 2005 3 15 m, m, o Special Project Administration 5 20 Mar–5 Apr 2006 2 32 n, m Project Completion Reviewb 15–24 Nov 2006 3 14 c, m, o TA = technical assistance.
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