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World Bank Document Document of The World Bank FOR OFFICIALUSE ONLY Public Disclosure Authorized Report No.: 18049 IMPLEMENTATION COMPLETION REPORT Public Disclosure Authorized REPUBLIC OF INDONESIA SECOND JABOTABEK URBAN DEVELOPMENT PROJECT (Lean 3219-IND) Public Disclosure Authorized June 23, 1998 Urban Development Sector Unit Indonesia Country Management Unit East Asia and Pacific Region Public Disclosure Authorized 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 Currency Unit = Indonesian Rupiah (Rp) (As of January, 1990) US$1.00 = Rpl,795 (As of July, 1997) US$1.0 = Rp2,400 (As of March, 1998) US$1.0 = Rp8,500 WEIGHTS AND MEASURES Metric Units FISCAL YEAR OF BORROWER April I - March 31 ABBREVIATIONS AND ACRONYMS BAPPEDA - Regional Government Development Planning,Board CRBDP - Citraum River Basin Development Project CTWLP - Cisadane Treatnent Water Line Project DG - Director General DGCK - Directorate General Cipta Karya (Human Settlements) DGWRD - Directorate General Water Resource Development DKI Jakarta - Special Capital Region (Daerah Khusus lbukota)of Jakarta EIRR - Economic Internal Rate of Return FIRR - Financial Rate of Return GO] . Government of Indonesia IUDIP - Integrated Urban Infrastructure Development Program JABOTABEK - Jakarta Metropolitan Region JSSP - Jakarta Sewerage and Sanitation Project JUPCO - Project Coordinating Unit in DKI Jakarta. BAPPEDA .lWRMS - Jabotabek Water Resource Management Study KIP - Urban Neighborhood (Kampung) Improvement Program MoHA - Ministry of Home Affairs OECF - Overseas Economic Cooperation Fund of Japan OED - Operations Evaluations Department O&MI - Operations & Maintenance PAM JAYA - Water Enterprise for DKI Jakarta PD PAL - PD Pengelola Air Limbah (Sewerage Manag,ementEnterprise) Pl) - Project ImplementationUnit PJSIP - PAM JAYA System Improvement Project PMU - Project Management Unit PO. - Authority of Jatiluhur PRWLP - Pejompongan Raw Water Line Project PSP - Private Sector Participation TA - Technical Assistance UfW - Unaccounted for Water WTC - West Tarum Canal WTP - Water Treatment Plant Vice President Jean-Michel Severino Country Director Dennis de Tray Sector Manager Keshav Varma Task Manager Alain Locussol FOR OFFICIAL USE ONLY IMPLEMENTATIONCOMPLETION REPORT REPUIBLICOF INDONESIA SECONDJABOTABEK URBAN DEVELOPMENT PROJECT (Loan 3219-IN) Table of Contents PREFACE.in.................. 1 EVALUATIONSUMMARY ....................................... iV PART I: PROJECT IMPLEMENTATION ASSESSMENT A. STATEMENT/EVALUATIONOF OBJECTIVES .................................. 1 B. ACHIEVEMENTOF OBJECTIVES ...... 2....................2 C. MAJORFACTORS AFFECTING THE PROJECT .............................. .. 8 D. PROJECT SUSTAINABILITY............ .9.......... 9 E. BANK PERFORMANCE..................... 10 F. BORROWERPERFORMANCE ...................... 10 G. ASSESSMENTOF OUTCOME...................... .. 11 H. FUTURE OPERATIONS...................... 11 I. KEY LESSONSLEARNED ..................... 12 PART II: STATISTICAL ANNEXES TABLE 1. SUMMARYOF ASSESSMENT.13 TABLE2. RELATEDBANK LOANS .14 TABLE3. PROJECTTIMETABLE .16 TABLE4. LOAN DISBURSEMENTS-CUMULATIVEESTIMATED AND ACTUAL .16 TABLES. KEY INDICATORSFOR PROJrECT IMPLEMENTATION (5A1, 5A2, 5B1 &5B2) .17 TABLE6. KEY INDICATORSFOR PROJrECT OPERATION (6A 1 & 6A2) .21 TABLE7. STUDIESINCLUDED IN PROJECT.23 TABLE 8A. PROJECTCOSTS .................................................. 26 TABLE 8B. PROJECTFINANCING .................................................. 26 TABLE9. ECONOMICCOSTS-BENEF ITS .................................................. 26 TABLE 10. STATUSOF LEGALCOVENANTS .................................................. 27 TABLE 11. COMPLIANCEWITH OPERATIONAL MANUAL STATEMENTS .............................................. 30 TABLE 12. BANK RESOURCES-STAFF INPUTS.................................................. 30 TABLE 13. BANKRESOURCES-MISSIONS .................................................. 31 APPENDICES: A. MISSION'S AIDE-MEMOIRE........................................................ 34 B. BORRowER'S CONTRIBUTIONTO TEIEICR ........................................................ 38 C. ECONOMICRATES OF RETURN...................... 53 MAPS (IBRD Nos. 21674, 21675, 22039) SUPPLEMENTARYTABLES AVAILABLEIN PROJECTFILES TABLE 1 A & B. PAM JAYA Income Statement 1990-96 TABLE 2 A & B. PAM JAYA Sourcesand Applicationsof Funds 1990-96 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. ii TABLE3 A & B. PAM JAYA Balance Sheet 1990-96 TABLE4 A & B. PDAM TangerangIncome Statement 1990-96 TABLE5 A& B. PDAMTangerang Sources and Applicationsof Funds 1990-96 TABLE6 A& B. PDAMTangerang Balance Sheet 1990-96 TABLE7 PD PAL JAYAConnections and Service Areas iii IMPLEMENTATIONCOMPLETION REPORT REPUEBLICOF INDONESIA SECONDJABOTABEK URBAN DEVELOPMENT PROJECT (loan 3219-IND) Preface This is the Implementation Completion Report (ICR) for the Second Jabotabek Urban DevelopmentProject in the Republic of Indonesia, for which Loan 3219-IND in the amount of US$190.0million was approved on June 5, 1990 and made effective on February 27, 1991. Part of the proceeds of the Loan, the equivalent of US$124.0million, was on-lent by the Governmentto (a) DKI Jakarta (US$19.0million); (b) PAM JAYA (US$92.0million); and (c) PDAM Tangerang(US$13.0 million) for 20 years at 9.5 percent per annum interest. Loan 3219-ND was closed on December 31, 1997 after a one year extension of the original closing date of December31, : 996. Final disbursementtook place on April 30, 1998, and a balance of US$15,265,338.84was canceled. The ICR was prepared by a team consisting of Alain Locussol (Task Manager), Dong Liu, JaehyangSo (EASUR),Leila Elvas, MohamadNuch (EACIF),and Ephrem Asebe (EASTR), consultant. It was reviewed by Messrs. Dennis de Tray, Director, Indonesia Country ManagementUnit, and Keshav Varma, Manager, Urban DevelopmentSector Unit, East Asia and Pacific Region. Preparation of this ICR started during the Bank's December 1996 supervision mission. The ICR is based on material in the Project file and data gathered during the ICR mission of December 1997, at which time discussions on the draft ICR were held with the Borrower. The Borrower contributed to the preparation of the ICR by providing its own evaluation of the Project, as reflected in the mission's Aide-Memoire(Appendix A), and by preparing an extensive separateevaluation of the Project, the summaryof which is shown in AppendixB. iv IMPLEMENTATIONCOMPLETION REPORT REPUBLICOF INDONESIA SECONDJABOTABEK URBAN DEVELOPMENT PROJECT (Loan3219-IND) EvaluationSummary i. Background.During the mid-1980s,the Governmentof Indonesia(GOI) introduced the conceptof IntegratedUrban InfrastructureDevelopment Programming (IUIDP), grouping under a single umbrella:urban transport, water supply,sewerage and sanitation,drainage and flood control, solid waste management and kampung (neighborhood)improvement (KIP) investments.Due to the size of Jakarta and its region, known as Jabotabek(Jakarta, Bogor, Tangerang,Bekasi), it was felt difficult to undertake activities in all sub-sectors under a single IUIDP project; IUIDP activities were thus divided into three projects. The first JabotabekUrban Development Project (JUDP I - Ln. 2932-IND & ICR No. 17116-IND) dealt with urban transport. JUDP III (Ln. 3246-IND),which is ongoing, deals with KIP and solid waste management.The project under review, JUDP II (Ln. 3219-IND), dealt with water supply, sanitation,flood control and drainage. ii. Project Objectives. As stated in the Staff Appraisal Report (SAR) No. 8339-IND, the Project's main objectives were to develop and implement a coordinated program of physical investments,technical assistance and policies for urban water supply, waste water disposal, drainage and water resource/qualitymanagement which would: (a) balance the existing production capacity with that of the transmission and distribution facilities; (b) increase piped water supply to about 50 percent of the population; (c) result in improved service for the poor through constructionof standpipes and removal of monopoly water sale by vendors; (d) improve waste water disposal; (e) strengthen management, staffing and financial viability of water supply and sewerage institutions; and (f) strengthen Jabotabek water resourceplanning capabilities.JUDP II was consistentwith GOI policy to decentralize design,financing and constructionresponsibilities of urban water supply to municipalwater supply companies and to implementcost recovery measures to ensure sustainabilityof the latter. iii. Project Components.The Project focused primarily on improving Jakarta's water supply through three major components: (a) the PAM JAYA (Jakarta Water Supply Company) System Improvement Project (PJSIP); (b) the Pejompongan Raw Water Line Project (PRWLP);and (c) the Cisadane Treated Water Line Project (CTWLP).In addition, the Project financed: (d) the completion of the Jakarta Sewerage and Sanitation Project (JSSP) initiated under an earlier project; (e) priority flood control and major drainage works in Jakarta; (c) the preparationof a JabotabekWater ResourceManagement Study (JWRMS); (f) the preparationof future projects; and (g) supportto the overall Project CoordinationUnit, JUPCO. iv. Evaluation of Objectives.
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