Document of The World Bank . ..

FOR OFFICIAL USE ONLY Public Disclosure Authorized

Report No. 4645a-IND

STAFF APPRXAISALREPORT Public Disclosure Authorized

INDONESIA

SECOND SWAMPRECLAMATION PROJECT

Public Disclosure Authorized May 7, 1984 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. CURRENCYEQUIVALENTS

US$1.00 1,000 Rupiah (Rp) Rp 1,000 = US$1.0 Rp 1 million = US$1,000.00

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 m) = 0.386 square miles 1 hectare (ha) = 2.47 acres 1 cubic meter = 35.31 cubic feet 1 million cubic meter (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

AARD - Agency for Agricultural Research and Development, MOA BIMAS - Bimbingan Massal Swa Sembada Bahan Makanan - Mass Guidance for Self-Sufficiency in Foodstuffs, a farm input-credit pakage program BRI - Bank Rakyat Indonesia - People's Bank of Indonesia BULOG - National Food Procurement and Distribution Agency BUUD/KUD - Village Unit Cooperative DGA - Directorate General of Agrarian Affairs (Cadastral Office) DGFCA - Directorate General of Food Crops Agriculture DGWRD - Directorate General of Water Resources Development, MPW DGSP - Directorate General of Settlement Preparation, MOT DGMG - Directorate General of Mobilization and Guidance, MOT DOS - Directorate of Swamps, MPW DPMA - Directorate of Hydraulic Engineering, DGWRD DPU - Departemen Pekerjaan Umum - Ministry of Public Works (MPW) FSRP - First Swamp Reclamation Project GOI - Government of Indonesia FOR OFFICIALUSE ONLY

ICB - InternationalCompetitive Bidding IPB - Institut Pertanian Bogor - Bogor Agricultural University IPEDA - Land Tax INSUS - Credit Program for Farmer Groups Participatingin Crop Intensification ITB - Institut Teknologi Bandung - Bandung Institute of Technology LCB - Local Competitive Bidding MOA - Ministry of Agriculture MOC - Ministry of Cooperatives MOH - Ministry of Health MOT - Ministry of Transmigration MPW - Ministry of Public Works O&M - Operation and Maintenance P4S - Proyek Pembukaan Persawahan Pasang Surut - Project Unit for Tidal Swamp Reclamation P3S - Proyek Pengairan Pasang Surut - Project Unit for Tidal Swamp Reclamation and Irrigation PLP - Directorate of Land Preparation for Transmigration PPL - Village Level Extension Workers PPM - Mid-level Agricultural Extension Workers PPS - Subject Specialists, Agricultural Extension PPW - Provincial Public Works REPELITA - Rencana Pembangunan Lima Tahun - Five-Year Development Plan SSRP - Second Swamp Reclamation Project

GLOSSARY

Hak Pakai - Individual Right of Use of Exploitation of Assigned Land Hak Milik - Right to Full Ownership of Land Jawa - Java Kabupaten - District Kakanwil - Provincial Director Kecamatan - Subdistrict Marga - A Community Grouping Under Traditional (Adat) Law PUSKESMAS - Community Health Center Sumatera Selatan - South Sumatra

This document has a restricteddistribution and may be used by recipientsonly in the performanceof | their official duties. Its contents may not otherwisebe disclosedwithout WorldBank authorization.

INDONESIA

SECOND SWAMP RECLAMATIONPROJECT

Loan and Project Summary

Borrower: Republic of Indonesia

Amount: $65.0 million (includingcapitalized front end fee)

Terms: Repayable in 20 years, including 5 years of grace, at the standard variable rate.

Project Description: The proposed project, the second Bank-assistedswamp reclamation project, focusses on strengtheninginstitutions implementingthe Governmentof Indonesia's (GOI's) program of swamp development. The project will also help finance a six-year time slice of an eight-yearprogram of reclaiming and developing about 30,000 ha of swamplandsin South Sumatra and settling about 11,500 families in the newly developed area. Project works will comprise the entire primary and secondary drainage infrastructure,about 60% of tertiaries, about 40% of on-farm works in the 30,000 ha development,and all houses and settlement. GOI will complete the remaining reclamationworks by end-1991. In addition,master plans will be prepared for future swamp reclamationschemes and feasibilitystudies and detailed designs will be prepared for upgrading some older schemes developed to minimum standards by GOI, a selected number of which will be upgraded. Tech- nical assistancewill be provided to agencies engaged in project preparation and implementation. Agricultural research for swamp developmentwill be expanded in South Sumatra and South Kalimantan and extension services will be improved, especially in pest control. The developmentof 30,000 ha will benefit directly 11,500 mostly-landless families from Java and Bali to be settled there /1 and increase paddy production by about 58,000 tons a year at full development. The main risks in swamp reclamation schemes are slow start up, slow implementationand delayed agricultural development. Project formulationreflects the experience gained in the first Bank-assistedswamp reclamationproject (FSRP, Loan 1958-IND) in improving the quality of works and increasing implementationefficiency, and the experience gained in ongoing GOI schemes on land and agricultural development. The rate of farm developmentassumed in project analysis is conservative,derived from achievementsin the ongoing program.

/1 Up to 15% could be local families wishing to settle in the project area. Estimated Costs:/a Local Foreign Total

…------$ million ------

Reclamation and Settlement Civil works 13.7 13.4 27.1 Transmigration 17.3 5.6 22.9

Subtotal 31.0 19.0 50.0

Institutional Support Consultants 2.8 6.3 9.1 Training - 0.2 0.2 Equipment 0.1 4.2 4.3 Well drilling and testing - 0.1 0.1 Test farms and facilities 0.5 0.3 0.8

Subtotal 3.4 11.1 14.5

Engineering and Administration 5.3 - 5.3

Base Costs 39.7 30.1 69.8

Physical contingencies 6.2 4.6 10.8 Price contingencies 20.1 7.6 27.7

Total Project Cost 66.0 42.3 108.3

Front-end fee - 0.2 0.2

Total Financing Required 66.0 42.5 108.5

Financing Plan:

Bank 22.5 42.5 65.0 Government 43.5/b - 43.5

Total 66.0 42.5 108.5

/a Includes taxes on civil works of $1.3 million. All figures rounded off to nearest decimal .

/b In addition, GOI will finance an estimated $12.3 million to complete all project works not included in the six-year time slice. - iii -

Expected Disbursements:

Bank FY 1985 1986 1987 1988 1989 1990 1991/a

Annual 2.0 6.0 15.0 15.0 12.0 7.0 8.0 Cumulative 2.0 8.0 23.0 38.0 50.0 57.0 65.0

Rate of Return: 12.5% on reclamationand settlement./b The ERR of insti- tutional support cannot be quantified.

Staff Appraisal Report: No. 4645a-IND, dated May 7, 1984.

/a The project will end in 1990. However, disbursementsare expected to continue into 1991.

/b About 74% of the total project cost.

INDONESIA

SECOND SWAMP RECLAMATION PROJECT

Table of Contents

Page No.

I. BACKGROUND

General ...... 1 The Agricultural and Rural Sector ...... 1 Transmigration ...... 0..... 2 Swamp Reclamation and Development ...... 3 Project Formulation and Design ...... e...... 7

II. THE PROJECT AREA

Location ...... 10 Climate ...... 10 Topography and Soils ...... 11 Hydrology and Hydrometry ...... 11 Forest Cover ...... 12 Current Land Use ...... 13 Population ...... 13 LandTenure ...... 14 Access, Services and Existing Developments ...... 14 Reclamation Schemes near the Project Area ...... 15

III. THE PROJECT

Objectives ...... 0...... 16 General ...... 16 Detailed Features of Reclamation ...... O- . . 16 Detailed Features of Settlement ...... 19 Institutional Support ...... 21 Status of Field Data, Planning and Design ...... 22 Implementation Schedule ...... 23 Consulting Services ...... 23 Cost Estimates ...... $..*...... 26

This report is based on the findings of an appraisal mission composed of Messrs. I. Naor, H. Matheson and P.C. Sun (Bank) which visited Indonesia in April 1983. - ii -

Page No.

Financing ...... 26 Procurement ...... 27 Disbursements ...... 28 Accounts and Audits ...... 28 Environmental Effects ...... 30

IV. ORGANIZATION AND MANAGEMENT

Executing Agencies and Coordination ...... 30 Agricultural Support ...... 32 Operation and Maintenance (O&M) ...... 35 Monitoring and Evaluation ...... 36

V. AGRICULTURAL PRODUCTION

Agriculture in Neighboring Areas ...... 37 Farm Development Patterns ...... 37 Land Development and Cropping ...... 38 Yields ...... 38 Crop Production ...... 39 Pest Control ...... 39 Drying Storage, and Processing ...... 40 Livestock and Fisheries ...... 40

VI. MARKET PROSPECTS, PRICES, FARM INCOMES AND PROJECT CHARGES

Market P'rospects ...... 40 Prices ...... 41 Family Incomes ...... 41 Project Charges ...... 42

VII. BENEFITS, JUSTIFICATION AND RISKS

Project Benefits and Beneficiaries ...... 44 Major Assumptions Used in Economic Analysis ...... 44 Economic Rate of Return (ERR) ...... 47 Sensitivity Analysis ...... 47 Risks ...... 48

VIII. AGREEMENTS AND RECOMMENDATIONS

Agreements Reached During Negotiations .... . 48 Recommendation ...... 49

LIST OF TABLES IN THE MAIN REPORT

1.1 Reclaimed and Settled Swamps in Sumatra and Kalimantan ...... 4 3.1 Project Components, Quantities and Executing Agencies ...... 17 - iii -

Page No.

3.2 Consulting Services ...... 24 3.3 Project Cost Summary ...... 25 3.4 Financing Plan ..*...... *...o...... o...... 26 3.5 Procurement ...... 29 4.1 Planting Materials and Agrochemical Packages ...... 33 5.1 Project Crop Yields ...... * ...... 39 5.2 Agricultural Production and Marketable Surplus ...... 39 6.1 Average Settler Family Incomes ...... 43 6.2 Rent and Cost Recovery ...... 44 7.1 Financial and Economic Costs ...... 46 7.2 Sensitivity Analysis ...... 47 8.1 Implementation Schedule ...... 50

ANNEXES

1. Summary Account by Time - 6 years, Summary Account by Time - 8 years, Project Component by Time - 6 years, Estimated Schedule of Disbursement, Proposed Allocation of Loan Proceeds, Detailed Cost Table, Consulting Services: Categories and Estimated Schedules, List of Equipment, Mean Monthly Climatological Data

2. Price Structures for Agricultural Output, Price Structures for Agricultural Inputs, Representative Farm Model - Physical Inputs and Output for Settler groups A and B, Family Income Analysis for a Typical Settler groups A and B, Labor Requirement of Farming Activities, Availability and Requirement of Family Labor per Month for a Typical Settler, Cumulative Schedule of Houselot Clearing, Summary of Economic Benefits, Rent and Cost Recovery, Economic Rate of Return Calculation

3. Schedule of Early Events

4. List of References

5. Statements of Expenditure

6. Summary Terms of Reference for Consultants

7. P3S Organization, P3S Provincial Office Organization

LIST OF FIGURES

Figure 4.1 (Chapter IV) - Special Unit for Bank Group Assisted Transmigration Projects Figure 1 (Annex 2) - Proposed Cropping Calendar Figure 2 (Annex 2) - Farm Labor Requirement and Available Family Labor of Typical Transmigrant Family Figure 1 (Annex 3) - Implementation Bar Chart Figure I (Annex 7) - P3S Organization Figure 2 (Annex 7) - P3S Provincial Office Organization - iv -

LIST OF MAPS

IBRD 17328R IBRD 17329 INDONESIA

SECOND SWAMP RECLAMATIONPROJECT (SSRP)

I. BACKGROUND

General

1.01 The Government of Indonesia (GOI) has requestedBank Group assistance to implement a second swamp reclamationproject (SSRP)/I which will strengthen implementingagencies, reclaim and develop about 30,000 ha of swamps in South Sumatra (SumateraSelatan) and settle about 11,500 mostly transmigrantfamilies. Master plans, feasibility studies and detailed designs will be prepared for (a) future swamp reclamationschemes, and (b) upgrading some older schemes which were developed to minimum standards by GOI. Agriculturalresearch for swamp developmentwill be continuedand expanded in Sumatra and Kalimantan; and agriculturalextension services will be improved, especially in pest control. The project has been prepared on the basis of reconnaissanceand master plan studies (1977/1978),feasibility studies (1981), surveys and detailed design (1983) completedby the Project Unit for Tidal Swamp Reclamation (P3S) of the Directorate General of Water Resources Development (DGWRD) Ministry of Public Works, and their consult- ants NEDECO-EUROCONSULT,Bogor AgriculturalUniversity (IPB) and the Institute of Technology at Bandung (ITB) with Bank assistance (Irrigation Projects VII and XII; Loans 1268-IND and 1645-IND).

The Agriculturaland Rural Sector

1.02 GOI's major objectives for the agriculturalsector are to (a) create productive employment to raise incomes of the rural poor; (b) increase domestic food supply to keep pace with rising demands; (c) expand agricultural exports, particularlyof smallholdertree crops; and (d) ensure productive, sustainable use of Indonesia'svaried land, water, and other natural resources.

1.03 Agricultureprovides more than half of Indonesia'semployment and about 30% of its GDP, and remains of paramount importance to nearly 80% of the population living in rural areas where agriculture is, and will remain, the major source of employment and income. In the 1980s, increases in agriculturalproduction are expected from intensified land use, yield increases, and development of new land, mostly in the Other Islands. Rice has traditionallybeen the nation's basic staple and will remain so for the foreseeable future. Self-sufficiencyin rice, almost reached in 1981, is susceptible to adverse climatic conditions,and continuedproduction increases are required to offset increasing demand. Irrigation,accompanied by the use

/1 The First Swamp Reclamation Project (FSRP) is supported through Loan 1958-IND which became effective in July 1981. of high yielding rice varieties, and swamp reclamation have been key factors in increasing rice production. The GOI investment program in irrigation and swamp reclamation and the strategy and role of the Bank have been explained in recent appraisal reports (see for example Irrigation XVI, Loan 2118-IND) and in a sector review completed in October 1982./2

Transmigration

1.04 Nearly 97 million of Indonesia's 150 million people (1983) live on Java (Jawa), on 7% of the land area (45% of its cropped area) at an average density of over 2,100 people/sq km of cropped land. With practically all arable land iinJava, Bali and Lombok already under cultivation, there is tremendous population pressure on land resources. Destruction of hillside forests, and the resulting soil erosion, exacerbates already serious floods and associated damage in coastal areas, and causes heavy silting of irrigation systems. Meanwhile, potentially arable areas, though of low fertility, lie unutilized or underutilized, in Other Islands. Organized efforts to move people to Other Islands began some 75 years ago and today, as a result cf officially sponsored transmigration, spontaneous migration, and internal growth, an estimated two and a half million transmigrants are living in Other Island settlements.

1.05 Government attaches high priority to transmigration to promote regional development, create employment, reduce population pressures and increase production of food and export crops. Before the mid-1970s both the size and quality of the transmigration program were limited by a shortage of funds. In 1978, however, with improved resources, and faced by shortfalls in rice production and increasing landlessness, Government accelerated the transmigration program. To achieve this, GOI transferred implementation responsibility from the Directorate General of Transmigration (DGT) to various ministries /3 and established the Office of Junior Minister for Transmigration (JMT) as coordinator. In 1983 GOI changed this policy and centralized nearly all responsibilities in a reorganized Ministry of Transmigration (para. 4.02). The Repelita III (1979-83) program began slowly but accelerated considerably in subsequent years. By the end of 1983 about 250,000 families (1,250,000 people) /4 have been moved voluntarily in little over four years to Other Islands and there are long waiting lists for transmigration in various parts of Java and Bali. This will make the Indonesian transmigration program one of the largest resettlement schemes in the world.

/2 Irrigation Program Review: An Issues Paper, October 1982.

/3 The Ministries of Manpower and Transmigration, and Public Works have major implementing responsibilities. The Ministries of Agriculture, and Home Affairs support implementation and following development are joined by social services ministries.

14 Including about 25% spontaneous transmigrants. About 83% of all families settled in upland areas, 17% in reclaimed swamps. - 3-

Swamp Reclamation and Development

1.06 Introduction. Indonesia's estimated35 million ha of inland and coastal swamps are nearly equally divided amongst Sumatra, Kalimantan and Irian Jaya. About 6 million ha of coastal swamps (1 million ha in Sumatra, 1 million ha in Kalimantan and about 4 million ha in Irian Jaya) have agriculturalpotential, especially for rice production,although conservation of primary forests, soil constraints and land rights may reduce the area which can be developed. Coastal swamps occupy broad, flat, and poorly drained zones that are partially inundated during rainy seasons by high tides or floods in adjacent rivers. Recent marine or fluvio-marineclays are dominant soil types overlain by peat layers of various depth and at various stages of decomposition. At, or near, mangrove belts, intercalatediron sulfide layers are common which can, upon drying and oxidizing, become toxic to crops. Nevertheless these soils can be agriculturallyproductive as long as they are kept in a wet state or well leached. Rice is a suitable crop for such conditions./5

1.07 First to develop coastal swamps for rice and coconut cultivation were Banjareseand Buginese./6 There was little Government sponsored reclamation prior to World War II, and six substantialreclamation pilot projects were started by GOI only in the late 1960s, comprisingnearly 30,000 ha for settlementof about 8,000 families. By 1978 nearly half a million ha of swamps had been reclaimed: half of it by GOI (Table 1.1), the remainder by Banjarese and Buginese. The rate of settlement in the early 1970s, however, did not keep up with the rate of reclamation. Consequentlyby 1978 there were large reclaimed but unsettled areas, particularlyin Riau and Jambi (Table 1.1). This situation has changed as a result of accelerated settlement in Repelita III (1979-1983)and by 1983 most reclaimed areas had been settled. During Repelita IV (1984-1988)GOI aims at reclaiminghalf a million hectares and settling over 140,000 families (or about 20% of all transmigrants)in reclaimed swamps.

/5 Developmentof Tidal Land in Southeast Sumatra, FAO Seminar 1975; and Reprints on Cat Clays, IRI.

/6 Banjarese are natives of Kalimantan who migrated from upland areas to selected coastal areas of Kalimantan, reclaimed and developed them. Buginese are natives of Sulawesi, highly skilled boat builders and navigators, some of whom migrated to coastal swamps of South Sumatra where they reclaimed and developed lands along major rivers growing rice and coconuts. - 4 -

Table 1.1: RECLAIMED AND SETTLED SWAMPS IN SUMATRA AND KALIMANTAN

Repelita I, Repelita II, Repelita III, (1969-1973) (1974-1978) (1979-1983) Reclaimed Settled Reclaimed Settled Reclaimed Settled area families area families area families (gross) (gross) (gross) ha No. ha No. ha No.

Sumatra

Riau 900 355 70,372 700 23,388 10,948 Jambi 6,800 2,584 27,164 500 28,222 7,055 South Sumatra 9,830 2,103 78,280 4,810 213,140 43,666

Subtotal 17,530 5,042 175,816 6,010 264,750 61,669

Kalimantan

West 2,730 500 35,964 2,600 34,655 5,250 South 8,178 1,536 17,898 750 17,029 2,500 Central 4,652 1,673 12,506 250 79,569 17,040

Subtotal 15,i560 3,709 66,368 3,600 131,253 24,790

Total 33J090 8,751 242,184 9,610 396,003 86,459

Source: P4S Progress Report, 12/81 and MOT records.

1.08 GOI Implementation Policy. GOI has adopted a multi-stage imple- mentation strategy for swamp development. The initial stage comprises a basic drainage infrastructure for subsistence (rice-based) agriculture; in following stages the infrastructure is to be upgraded, inputs and, where feasible, irrigation, are to be provided to increase production./7 The first stage infrastructure includes navigation canals (equivalent to trunk roads in dry land developments) and open surface drainage systems. A limited number of bridges are built across canals, and drains are left open to surrounding rivers without structures to control the movement of water (para. 1.15). After canals are constructed and the land is sufficiently drained to allow access, it is subdivided into individual holdings of about 2.25 ha per family of which 0.25 ha is designated as a houselot and the remainder is usually divided into two separate farm plots, one close to

/7 During Repelita IV (1984-88) GOI intends to start rehabilitating and upgrading older systems. the houselot, and one within 5 km./8 One or more years later, houselots and one farm plot (1 ha) are cleared, houses are constructedand settlement starts. Mostly because of its relativelybetter soil, South Sumatra has been a major focal point in GOI's Swamp reclamationprogram and over half of all reclaimed swamps are located in this province. Reclamationworks started in the late 1960s, and even though agriculturaldevelopment is slow (para. 1.16) and essentiallyconfined to a single, wet season rice crop, it has succeeded in most cases in creating at least a subsistencebase for settled trans- migrants./9 In 1983 prices it cost GOI an estimated $6,000 to reclaim a net area of 2.25 ha of swamp land and settle one family./10

1.09 Challenges. In the past, developmentplans were prepared by four local universities(IPB, ITB, Universitiesof Gajah Mada and North Sumatra) which have accumulated expertise in swamp reclamation design; the expanded Repelita IV program exceeds their capacity and project preparationwill also be assigned to consultantsnot as experiencedas the universitiesand hence requiring closer supervision. P3S which is entrustedwith this responsibility requires technicalassistance for this task.

1.10 In the past, poor cooperationbetween line agencies engaged in swamp reclamationand developmentresulted in delayed implementationand idle investments,although recently inter-agencycooperation has improved and major settlement delays have been reduced. A reorganizationof the Ministry of Transmigration(MOT) in March 1983 (which absorbed transmigrationplanning, part of DITADA,/11 and land preparation,PLP (previouslyPLPT), but leaving the responsibilityfor preparationand constructionof infrastructurewith Public Works) should improve implementation. Further improvementwill require closer coordinationbetween executing agencies (P3S, formerly P4S, PLP and the DirectoratesGeneral of Settlement Preparation (DGSP) and Mobilizationand Guidance (DGMP) in MOT) and supporting agencies (para. 4.03).

1.11 Constructionquality in GOI projects has sometimes been proved sub- standard; navigation canals and drains are not always constructed to specifi- cations, and lands are not properly cleared, partly because of poor scheduling but mostly due to inadequate supervision. Infrastructureis not adequately maintained and P3S, which has no funds for this, has been unable to transfer

/8 The design of both FSRP and SSRP is based on single farm plots within 2 km from houses (para. 3.07).

/9 Except at Cinta Manis where several hundred hectares had to be abandoned after potential acid sulfate top soils were allowed to dry, but not leached, which resulted in their acidity, toxicity and loss of productivity.

/10 Under the SSRP the estimated cost per family for reclamationand settlement (includingEngineering, Admin. and Physical Contingencies) is about $6,100 (Table 7.1).

/11 Directorate of Urban and Regional Planning. - 6 -

responsibility to provincial Public Works who, by law, are responsible but lack capacity. Land and agricultural development has been generally slow and settlers find it particularly difficult to control pests. Lack of adequate potable water has been a serious problem during dry seasons in many reclaimed swamp settlements. The FSRP started to address these problems, and the SSRP has been designed to provide further assistance.

1.12 Bank Objectives and Strategy. The Bank concurs with GOI on its multi-stage development strategy though the process can be improved and made more cost effective through better site selection, construction stan- dards, agricultural research and development and pest control. Additionally, a reliable drinking water supply has to be ensured and the environment has to be protected. The Bank can assist GOI in addressing these issues through a policy dialogue made possible through involvement in physical developments formulated to demonstrate innovative procedures, and through institutional assistance to GOI's program. Bank assistance for swamp reclamation began in 1975 when, upon GOI request, representatives of the Bank, GOI, FAO, and the Government of Netherlands reviewed hydrological and pedological aspects of developing tidal lands and defined criteria for the selection of suitable areas for development./12 In 1976, the Bank provided assistance for surveys and studies of specific projects in South Sumatra and Jambi,/13 and in 1979, for detailed design (Karang Agung) and feasibility studies to develop about 350,000 ha in South Sumatra and Kalimantan./14

1.13 The First Swamp Reclamation Project (FSRP). In 1981 the Bank approved a small, 9,000 ha reclamation and settlement project (at Karang Agung, South Sumatra), studies, and institutional support./15 The project, designed to demonstrate improved implementation through better supervision, and improvements in crop production through better water management,/16 started only in January 1982, about six months behind the appraisal schedule and about a year after bid opening./17 During the first year of construction,

/12 Development of Tidal Lands in South-East Sumatra, Report of a Seminar held at FAO, Rome, 24-26 November, 1975.

/13 Irrigation VII (Loan 1268-IND).

/14 Irrigation XII (Loan 1645-IND)

/15 FSRP, Loan 1958-IND.

/16 By paddy-field bunds and tertiary controls.

/17 This, as a result of unduly protracted bid evaluation procedures and deliberations between procurement committees of DGWRD (the executive agency) the Ministry of Public Works (PAPEDALUM) and the interministerial committee (SEKNEG) on bid evaluation. -7-

the contractor completedonly about 60% of targeted civil works,/18mostly because of inadequateequipment but as a result of strict supervisionthe quality of work was good. By March 1983 about 220 ha of houselots had been cleared,/19 about 500 houses built, and by end-1983, 500 families had been settled. The arrival of additional equipment in the summer of 1983 accelerated progress of civil works which should be completed by the end of 1984, about six months behind schedule. Following GOI procedures, land clearing and housing constructionhas been executed for 1983 settlers,and other contracts are to be signed for land clearing and housing for settlers scheduled for 1984. All studies under the project (with the exception of an impact study scheduled to commence in 1982/1983)have started and progress is satisfactory. By the end of September 1983 a total of about $5.6 million, or 75% of scheduled amounts had been disbursed for consultants ($4.0 million) and civil works ($1.5 million). The main lessons already learned from this project are: (a) a need to improve prequalificationof civil works con- tractors; (b) a need to streamline administrativeprocurement procedures, particularlyof evaluating bids and awarding contracts; /20 (c) project management procedures such as those implemented in the FSRP result in quality improvement;and (d) land clearing can be improved by improved specifications and supervision./21

Project Formulationand Design

1.14 Staged implementationpolicy emphasizingpest control, drinking water supply and agriculturalresearch and developmentis reflected in project formulation and design. Similarly, experience from the ongoing FSRP, (whose impact upon agriculturaldevelopment will be quantifiableonly in the 1990s, several years after completion) as itemized in para. 1.13, is incorporatedin implementationplans. The SSRP will be of a much larger scale than the FSRP. Located closer to the sea, and covered by considerablydenser and heavier forests, it will complement and expand the experience from the first project. The dialogue on improvingthe reclamationprogram under the FSRP, will be continued and broadened by institutionaland technicalassistance. The thrust of the SSRP is expected to improve the quality of program preparation (site selection and design); implementationstandards; and to provide adequate

/18 Navigation,primary and secondary canals.

/19 Final clearing was carried out by settlers who were compensated for their work.

/20 This subject is currently under discussion between the Bank and GOI.

/21 E.g., contractors should be required to cut trunks into shorter than 5 m segments as done presently in order to facilitate settlers windrowing of trunks and finishing clearing of fields. - 8 -

drinking water and agriculturalsupport. This would be achieved through (a) demonstrationand training in improved implementationand supervision procedures; (b) technicalassistance in planning and preparation;and (c) strengthenedagricultural research and development.

1.15 For replicability,physical works have been designed in accordance with GOI criteria./22 Project plans provide for low-cost drainage infra- structure, and for optional, second stage, irrigation facilities which are not included in present cost estimates. In the past there were some differences of opinion between the Bank and GOI on the timing for constructingwater control structures./23 These have been resolved by providing paddy-field bunds and plans for structures but deferring their constructionuntil agriculturaldevelopment has advanced to dry season cropping (requiringwater control structures)or, otherwise, if monitored soil reaction (a drop in pH values) indicates acidity formation. In parts of the project where frequent salinity intrusion is probable, secondary control structures will be built initially to prevent sea water intrusion (para. 2.06).

1.16 In most GOI projects it has taken settlers up to seven years to fully develop the entire farm area. To remove a constraint posed by two separate plots and facilitate faster land development,the FSRP and the SSRP call for a single, 1.75 ha farm plot per family instead of two, smaller, separate farm plots presently provided in GOI projects (para. 1.08). As in other GOI projects, only half of each farm plot will be cleared. (Equiva- lently, the entire plot may be partially cleared.) While more extensive clearing at the Project's expense could have acceleratedland development, GOI's procedures have been followed to avoid developing costlier

/22 With minor exceptions concerning water control structures and farm plot layout.

/23 The need for these structures, including tertiary gates that are primarily designed to maintain high water tables in fields to prevent toxicity in potential acid sulfate subsoils was never questioned by GOI, though the timing of constructionwas. Bank staff favored early constructionto slow down the rate of subsidence of peat top soils which cover potential acid sulfate subsoils, prevent acidificationof exposed subsoils, and facilitate better water management and better cropping during wet and dry seasons. GOI, which for budgetary reasons postponed constructionto future upgrading phases cited the experience in Indonesia'sreclaimed swamps where even after 10-15 years following reclamation,no irreversible acidificationhas occurred (probably because most developmentsavoided areas where potential acid sulfate soils were at the surface) and seasonal increases in soil acidity, in few locations,usually disappear after the first rain. - 9 -

and nonreplicableBank assisted projects. However, procedures,supervision, and schedulingwill be improved to enhance quality and increase cost effectiveness (para. 3.06). Furthermorefarmers will be assisted through Community organizers to cooperate in clearing their entire farm land and develop it (para. 3.19).

1.17 In addition to site specific activities, the SSRP will provide wider support for the GOI swamp reclamationprogram. Site managers of other govern- ment projects will be trained in constructionsupervision and management at the 30,000 ha developmentand at neighboring reclamationprojects; contact between field, regional and headquarters offices of executingagencies will be systematized;and assistance will be provided to headquartersstaff selecting and preparing projects. The SSRP will assist DGFCA to extend plant protection activities, and will provide technical assistance to MOT aimed at increasing the pace of land developmentin swamp reclamation areas.

1.18 The SSRP will upgrade selected infrastructuralworks in a number of GOI's earlier swamp reclamation schemes, following completion of detailed design and approval by the Bank./24 Drinking water supply, particularlyacute during dry seasons when river water is too saline for drinking, has been addressed in the FSRP by providing seven barrels (or equivalent)per family to collect and store rainwater,and ground water investigationsare in progress for supplementarywater supplies. The SSRP will expand ground water investi- gations to a larger area and investigatealternative sources for potable water supply (e.g. treated and stored surface water).

1.19 The environmentalimpact of the SSRP is minor but the situationmay be different when large, nearly contiguous areas are reclaimed. Consequently monitoring and evaluation of environmentalchanges is included in the SSRP which will expand a similar study initiatedat the site of the FSRP, examine changes in chemical characteristics,fauna and flora, in rivers adjacent to large, reclaimed areas in South Sumatra and South Kalimantan and examine physical and chemical changes in soils.

1.20 Other studies begun under the FSRP will be continued and expanded including (a) a nationwide inventory of potentiallyreclaimable coastal and near-coastalswamps (which identified Irian Jaya as the major reserve of such swamps) will be followed by reconnaissanceand master plan studies; and (b) feasibilitystudies for upgrading additional systems, will be followed by detailed designs.

/24 This will entail rehabilitationof canals, bridges, jetties and con- struction of water management control structures,where required, for which a sum of $5 million has been allocated. Studies to determine these needs are currently in progress under the FSRP. - 10 -

1.21 The SSRP will support a three-year time slice of an agricultural research and developmentprogram, executed by AARD, specificallyaimed at increasing production in reclaimed swamps (para. 4.07). The research component is limited in scope and supported by consultants,and will not interfere with AARD's ongoing research commitments. Due to the lead time required to produce tangible results, activities will start under this project and continue under the national research program (para. 4.08).

1.22 The SSRP will provide institutionalsupport to the provincial public works services (PPW) in South Sumatra to operate and maintain the infrastructurein the FSRP, the SSRP and neighboringGOI projects to be selected. Thi;swill include technical assistance, training of PPW staff and a limited quantity of equipment (para. 4.10).

II. THE PROJECT AREA

Location

2.01 The project area is in the district of Musibanyuasin,South Sumatra, about 45 km from the coast and 80 km northwest of the provincial capital, Palembang./25 It forms part of a flat, low-lying plain intersectedin an east-west direction by the tidally influencedLalang river. Most of the project area lies along and to the north of the Lalang river; beyond its western boundary is a peat dome, unsuitable for agriculture;the northern boundary is the year-round saline Sembilang river, and the eastern boundary is the Karang Agung Hilir project, a GOI swamp reclamationproject (para. 2.18).

Climate

2.02 The climate of the area is typically tropical,hot and humid year round, with an average annual rainfall of about 2,600 mm. The wet season generally lasts from October to mid-May with average monthly rainfall ranging between 200 and 300 mm, for 15 days per month. The dry season extends from the second half of May through September with average monthly rainfall of about 140 mm spread out over 7 to 10 days. July is normally the driest month. Weather patterns appear to be cyclic with droughts occurring every four to

/25 Palembang is the largest city in South Sumatra with a population exceeding one million. It is the center of Indonesia'soil refining and fertilizer industries and an important timber processing and shipping port. See Maps IBRD 17328 and 17329. - 11 -

five years. Rainfall data shown in Annex 1 are from stations located within the catchment of the Lalang River, about 50 to 90 km distance but are thought to be representative. Temperatures,relative humidities and potential evapotranspiration(recorded at Palembang) are fairly constant throughout the year.

Topography and Soils

2.03 The project area is flat, above mean water levels (in surrounding rivers) with elevations ranging between +3.00 m and +4.00 m./26 In the absence of internal waterways and pronounced gradients, drainage is poor and portions of the area are inundated during the rainy season as a result of local rainfall and high tides. Some low areas are inundatedalso during the dry season.

2.04 A semi-detailedsoil survey and soil classification(IPB, 1980) shows that over 70% of project area is covered by organic soils of 15 cm or less underlain by poorly drained, nearly ripe, clays,/27 classified as Tropaquents,with sulfidic material at depths in excess of 70 cm. These soils are classified as suitable for rice, conditionallyfor secondary crops and for tree crops. About 25% of the project area is composed of peat top soils varying in depth between 40-70 cm with sulfidic material underneath. These soils are also suitable for rice and other crops but production is more sensitive to adequate water management than that of the previous class. Soils have been classified unsuitable for rice and other crops where peat layers exceed 90 cm (for nutrient deficiencies,low water holding capacity and poor anchorage for tree crops), or where saline soils or potential acid - sulfate surface soils have been encountered (see Map 17329). In general, peat thickness and soil reaction would be regularlymonitored throughout the life of the project and timely measures (e.g. constructionof water control structures) taken to prevent drying and toxicity formation in potential acid sulfate subsoils (para. 4.14).

Hydrology and Hydrometry

2.05 Water supply, drainage and water quality in the project area are primarily affected by the Lalang river, and to a lesser degree by the Calik river. The saline Sembilang river has pronounced influence on water quality. The Lalang river, with a catchment of 8,000 sq km, is nearly 500 m wide and 6 m deep at its confluencewith the Calik river, but decreases in width to

/26 Elevations are project reference elevations, 3.448 m below benchmark PUTL118 (El. +3.448) located on the Calik river 37 km upstream of the confluence of the Lalang.

/27 The soils in tidal lands are in different stages of ripening or soft- ness. Unripe soils are high in water content, low in bulk density and very soft. - 12 -

in width to 180 m, 60 km upstream./28 Its depth increases over the same distance from 6 m to 18 m, its cross section decreases from 2,600 sq m to 2,000 m, while the catchment area decreases only 7%. These characteristics indicate higher velocities in upstream reaches which enhance flushing of intruded salinity during flood stages.

2.06 Salinity intrusion is particularlypronounced during dry season spring tides when salinity of 1,000 ppm TDS (total dissolved solids) intrudes 40 km upstream from the mouth of the Lalang and salinity of 5,000 ppm intrudes about 30 km. During a severe drought (such as occurred in 1980), salinity of 5,000 ppm was recorded at a distance of 47 km and 1,000 ppm at 63 km./29 These data infer that protection in part of the project area may be required against sea water intrusion from the Sembilang, Lalang and Calik rivers (para 3.05).

2.07 Mathematicalmodeling, dischargemeasurements in the Lalang upstream of tidal influences,and water balance studies indicate a mean annual flow in the river of 300 cms (cubic meters per second), a mean dry season flow of 125 cms; and a mean driest month flow of 100 cms./30 Mean water levels range between +1.70 m and +2.10 m (PRL) /31 at the mouth of the Lalang River and between +1.70 m and +2.40 m (PRL) at the upstream border of the project area. At the same location,high water levels during spring tides range between +3.10 and +3.80 m (PRL) and +3.10 and +3.70 m (PRL) respectively. The highest observed water level at the river mouth was +3.94 m (PRL) and at the upstream border +3.77 m (PRL). Design flood stages for embankment design have been considered as 15 cm and 25 cm respectively above these levels.

Forest Cover

2.08 There is no primary forest cover in the project area. Nearly half of the area is covered by bush and small diameter gelam trees (Melaleuca leucadendron)and the other half by secondary swamp forest (Macaranga, Lophopetalum,Dyera, etc.) with an average stand of 550 trees/ha and an

/28 The project area starts 20 km from the mouth of the Lalang, extending a distance of 30 km upstream.

/29 Water containing total dissolved solids in excess of 1,000 ppm is not suitable for drinking. An excess of 5,000 ppm renders water unsuitable for rice.

/30 Measurementsand calculationsby DPMA, DGWRD's Hydraulic Laboratory, under a bilaterally supported program, DPMA/P4S/BTA-60.

/31 Project Reference Level. - 13 -

average diameter of 50 cm./32 As the area is relatively close to main rivers it has been intensivelylogged and remaining trees are of limited economic value.

Current Land Use

2.09 The project area is uninhabited and there is no agricultural activity. There is, however limited agriculturalactivity along the bordering Lalang river consisting of a single wet season crop of rice and coconuts grown on raised banks and on higher ground (para. 5.01).

Population

2.10 Existing Population. There are two settlementsbordering the pro- ject area, Sungai Sembiring (with about 10 families) and Sungai Dua (with about 33 families). Teluk Bayur, also on the Lalang river has about 31 families. Sungai Dua and Teluk Bayur are mainly Buginese settlements. Panuguan the biggest village in this area on the Calik river (Map 17329), has about 309 families and has become an important trading and service center. In addition, several hundred spontaneous settlers have reclaimeda relatively narrow strip of land along the Calik river, by digging short canals perpendicularto it. More than half of these families settled in the past decade. Boundaries for the SSRP were drawn up so as not to interfere with existing settlements.

2.11 Characteristicsof TransmigrantFamilies. A recent survey of Government-sponsoredtransmigrants in nearby Delta Upang shows a typical family consists of five persons; a husband and wife aged 35 and 29 years respectively,and three children aged about 10, 7 and 3 years. Within ten years, a typical family has one more child. This implies a family labor force of 1.7 adults in the year of settlement, increasing slowly to about 3 in the thirteenthyear after settlement. The development of a typical settler family labor force is shown in Annex 2, Table 8.

2.12 Migratory Labor. Migratory laborers arrive annually to harvest traditionallylarge holdings of Malays and Buginese (who are heavily engaged in fishing and forestry). They supply up to one-third of the total labor demand of larger farms.

/32 In contrast, the FSRP project area is mostly covered by small gelam trees. - 14 -

Land Tenure

2.13 Traditional community organizations (Margas) control resources in Sumatra, and grant land ownership rights to members for nominal payments and land use rights to non-Marga settlers. They control the planting of coconuts and other perennial crops on land to which ownership rights have not been assigned, and auction each year the exploitation rights of valuable common resourcies, such as fishing grounds and nipah palm areas. Timber concessions, which cover most of the primary forests in the region, are granted by Government in coordination with the Margas. They are terminated within one year following designation of an area for transmigration. The Government's swamp reclamation program has not caused serious conflicts with the local population,/33 because construction provides labor opportunities while public services (health centers, markets, schools) also serve local residents. Land tenure is not a development constraint since 1,500 sq km of Karang Agung, including the project area, has been declared a transmigration area /34 from which already settled land along the rivers has been excluded.

Access, Services and Existing Developments

2.14 Access. The project area is accessible from Palembang by road to the Tungkal river some 75 km south of the project area, and from there by river, or, alternatively by the year round navigable Musi, Telang and Calik rivers and connecting canals. The river and canal system has sufficient draft during low tide for the heaviest locally used barges.

2.15 Supporting Services. Commercial facilities in Panuguan are adequate to serve the project area in the early years. In addition to a small daily market and a larger market one day each week, Panuguan has a cooperative rice mill. Two private rice mills and rice hullers are located at nearby Sungai Dua and at Teluk Bayur. There are cooperative marketing and agricultural input supply centers (BUUD/KUD) at Panuguan. Agricultural extension services for nearly 6,700 settlers in nearby Pulau Rimau and Karang Agung Hilir are provided by DGFCA's field extension workers (PPL)/35 who visit the area once a fortnight most of the year, and who stay in the area during the rice planting season. There are primary schools in Panuguan, Pulau Rimau and a number of schools under construction at Karang Agung Hilir. The nearest secondary school is in Upang. Panuguan and Karang Agung Hilir have small health clinics (sub Puskesmas) staffed by paramedics while Pulau Rimau and Sungsang each have a clinic (Puskesmas).

/33 Conflicts have, however, occasionally broken out between spontaneous settlers andl local communities.

/34 South Sumatra Governor's Decrees #995/KPTS/l/1979 and #1019/DPTS/I/1980.

/35 Penyuluh Pertanian Lapangan. - 15 -

Reclamation Schemes near the Project Area

2.16 Delta Upang. The developmentof Delta Upang, 60 km downstream from Palembang on an estuary of the Musi River, began in 1969. After initial difficulties,over 8,000 ha have been reclaimed and over 2,000 transmigrantfamilies settled, while several hundred spontaneousJavanese, Buginese and local people settled near the project area. Upang now has a market town, Makartijaya,and a full complementof social, agriculturaland commercial infrastructure.

2.17 Delta Telang. The Telang schemes, comprising Telang I with a net area of about 15,000 ha and Telang II with about 8,000 ha (net), are located some 50 km east of the SSRP project area. Developmentof Telang I, situated between the Musi and the Telang rivers, started in the mid-1970s with settlement commencingin 1978. About 5,000 families are now settled in Telang I. Land developmentis proceeding satisfactorilyexcept in a small area where deep peats were encountered after the area had been opened up./36 Developmentof Telang II, further to the west on a peninsula between the Telang and Banyuasin rivers, started in 1976 and nearly 3,800 families have been settled.

2.18 Saleh, Sugihan, Pulau Rimau and Karang Agung Hilir. The development of Saleh and Sugihan, schemes to the east of the Upang river, started in 1977/78. By March 1, 1983, about 19,000 ha had been reclaimed at Saleh, 50,000 ha at Saleh-Sugihanand 31,000 ha at Sugihan. During the same period some 5,000, 12,000 and 9,000 families, respectively,had been settled. At Saleh many settlers developed land under the guidance of resident MOT leaders and managers, and within two years cleared about 1.5 ha per family for rice planting. The area has a daily market for farm produce, and village shops are stocked with basic consumer goods. Pulau Rimau, on the east bank of the Calik river between the FSRP and the Lalang river, whose developmentstarted in 1980, comprises a net reclaimed area of nearly 23,000 ha. Contract land clearing work and house constructioncommenced in 1981 and by the end of 1982 about 370 resident families were engaged in follow-up land clearing operations. Reclamation of Karang Agung Hilir, a 20,000 ha developmenton the eastern border of the project area, began in 1981 and a net area of about 5,000 ha has been reclaimed to date. The first 128 families arrived in March/April 1983.

/36 To avoid similar occurrences,P3S site selection and project preparation capabilitywill be upgraded under this project. - 16 -

III. THE PROJECT

Objectives

3.01 The major objective of the project is to support GOI's Swamp Recla- mation and Settlement program which will expand considerably during the 1984- 1988 Five Year Plan (Repelita (IV). The project's main thrust is to improve the quality and efficiency of the program without increasing its costs. The project has two principal components: (a) Reclamation of about 30,000 ha of coastal swamps near Karang Agung, South Sumatra and settlement of about 11,500 families; and (b) Institutional support to the Ministry of Public Works (DOS, Provincial PW), Ministry of Transmigration (DGSP, DGMG and PLP), and the Ministry of Agriculture (DGFCA, AARD) in implementation, research and related activities.

General

3.02 Reclamation and Settlement activities comprise a six year time slice of an eight year implementation schedule of draining, clearing and developing a gross area of about 30,000 ha and settling about 11,500 families. Works include construction of a drainage infrastructure, land clearing, construction of houses, village facilities and settlement of transmigrants. The six year time slice covers all main civil works and settlement, about 60% of all tertiaries, about 67% of clearing of farm plots, and about 40% of paddy-field bunds. Remaining works, estimated at $12.3 million (in current terms) will be completed by GOI by 1991 (para. 3.29).

3.03 Institutional Support includes technical assistance to line agencies in project preparation, implementation management, drinking water investiga- tion, planning upgrading of older schemes, planning of new development, assistance in O&M, land preparation, agricultural research, monitoring and evaluation.

3.04 Components of the project and agencies executing them are summarized in Table 3.1.

Detailed Features of Reclamation

3.05 Hydraulic Infrastructure./37 The hydraulic infrastructure, shown on Map 17329, comprises 14 primary drains, spaced about 4 km and each about 8 km long connecting to surrounding rivers; about 150 km of secondaries and collector draiins; about 800 km of tertiaries and about 1,600 km of hamlet drains. Up to 180 gated secondary controls will be built where required to

/37 Unless indicated otherwise, the works described are those included in the Bank-financed six-year time slice. -17-

Table 3.1: PROJECT COMPONENTS, QUANTITIES AND EXECUTING AGENCIES

Approximate Executing Component quantities agency

Reclamation and Settlement Reclamation Infrastructure Primary drains 120 km P3S Secondary and collector drains 150 km P3S Hamlet drains 1,600 km P3S Secondary structures 170/a P3S Hamlet outlet structures 340 P3S Pedestrian bridges 510/b P3S Jetties 470 P3S Paddy field bunds 580 thousand cu.m./c DGFCA

Land Clearing Clearing of house lots, extended houselots and village areas 7,500 ha PLP Farm plots clearing 7,600 ha /c PLP

Settlement Housing and Villages Housing 11,500 units DGSP Village facilities 30/d DGSP

Mobilization and Support Mobilization and transport 11,500 families DGMG Supplies and support 6,000 families /c DGMG

Institutional Support Technical Assistance Implementation management, construction, O&M /f - DOS, PPW /e Implementation management and methods improvement of land clearing - PLP Drinking water investigation - DOS Planning upgrading of earlier developments - DOS Master plan studies - DOS Final land preparation through community action - DGMG Agricultural research and development a - AARD Monitoring and Evaluation - DOS, DGFCA, MOT coordinated by MOT

Materials, Supplies, Plant Protection - DGFCA

Construction Upgrading older schemes 5,000 ha DOS

/a Para. 3.05. 7 About 30 primary, 480 secondary bridges. /c Six-year time slice. /d Thirty villages, 2 secondary villages. /e Provincial Public Works of South Sumatra. /f Technical assistance and equipment /g Technical assistance and funds for test farms. - 18 -

prevent seawater intrusion./38 Larger drains will be excavated mechanically, preferably by draglines (which are considered cost effective for larger and deeper canals) while tertiaries will be excavated by small hydraulic excavators, or manually. Shaping of embankments will take place after initial subsidence, and all embankments will be at least 50 cm above high water levels.

3.06 Land Clearing. Although 7,500 ha of houselots and village areas will be cleared by contractors before settlers arrive, farm plots will be cleared possibly with settler participation as paid laborers./39 Based on current land clearing at the FSRP, and trials to be carried out under the SSRP (during strip clearing for drainage works) specifications may be modified and project management will decide to either clear half of each farm plot, (or about 7,600 ha) or alternatively, to partially clear entire farm plots. In either case, land clearing costs will be the same as in other GOI projects with similar vegetative cover. Paid participation of settlers, better scheduling and stricter supervision are expected to improve the quality of land clearing.

3.07 Subdivision and housing. Following strip clearing for tertiaries, the land will be subdivided into rectangular 1.75 ha farmplots and 0.5 ha houselots./40 A typical transmigration standard wooden house of 34 sq. m will be built on each houselot equipped with 7 barrels or equivalent, for the collection of rainwater for drinking. To reduce the number of tertiaries (and associated control structures) a rectangular grid employed in the FSRP has been modified to a triple pronged fork system with short secondaries and longer tertiaries. A typical tertiary block will comprise 24.5 ha (14 farm plots of 1.75 ha each, with a maximum distance of 2 km from house to farm plot), and a secondary block will comprise six tertiary blocks. A typical hamlet of 28 houses, an equal number of house lots and farmplots, will have two tertiary blocks (Map 17329).

3.08 Paddy-Field Bunds. Clay bunds of about 50 cm height will be constructed with settlers' participation along the perimeter of farm plots (and at intermediate intervals where necessary) to reduce soil water depletion (by horizontal movement) and facilitate water management.

/38 Locations will be identified after at least one year of weekly salinity measurements, to be initiated at project inception and concluded not later than beginning of 1987.

/39 This, an FSRP innovation, is becoming standard practice in the GOI program.

/40 Divided into two, nearly adjacent, 0.25 ha sublots. The lot on which the house is located will be drained and used for other than rice crops while the second, or extended, houselot will be used for paddy. - 19 -

Detailed Features of Settlement

3.09 TransmigrationProcedures. The project will follow establishedGOI procedures for recruitmentof transmigrants transport,subsistence supplies, assistance and guidance during and after settling. Transmigrantswill be recruited amongst waitlisted people in Java and Bali with priority given to: (a) ecologicallythreatened areas; (b) areas in which population density exceeds 1,000 persons/sq km; (c) nonarable areas; (d) areas subject to recurringdisasters; (e) areas made uninhabitableby developmentprojects (e.g. reservoirs);and (f) the poorest Kecamatans /41 of each Kabupaten./42 Transmigrationis voluntary and there are long waiting lists for transmig- ration in Java and Bali. Amongst transmigrantsto the SSRP at least 5% will be Balinese whose special aptitude in hunting wild boars is expected to help in controllingcrop damage.

3.10 Rate of Settlement. Settlers will start arriving in the project in the spring of 1986 and by summer 1989 all 11,500 families are expected to be settled in houses provided by the project. A peak settlement rate (of about 500 families/month)/43 is expected during the months of March-June as settlers arriving during these months would have adequate time during the first year to settle in, prepare and cultivate houselots and also part of their farm plots. A projected schedule of land clearing, housing, and settlement is given in Annex 2, Table 9.

3.11 Provision. Prior to arrival, each family will be given mosquito netting, sleeping mats and cooking utensils, and after arrival, will receive agriculturalimplements, axes and saws, and the first of 18 monthly subsis- tence rations, containing essential foods and kerosene./44 A monthly ration per family will consist of 50 kg of rice, 5 kg of dried fish, 8 liters of kerosene, 3 kg of sugar, 2 kg of salt and 1 kg of soap.

3.12 Orientation. Settlers will be briefed by MOT staff and PPLs on the environmentof their settlement,appropriate technologies,particularly soil and water management, community activitiesin land clearing, development, pest control, O&M, marketing, use of local resources,health and education.

3.13 Community Development. MOT staff will coordinateand promote community development including. (a) registrationand settlement of new arrivals; (b) disseminationof economic and social informationto settlers; (c) group activitiesin land development,crop husbandry and O&M (para. 3.19);

/41 Kecamatan: Subdistrict.

/42 Kabupaten: District.

/43 Conservativelyestimated with due regard to transportationand transit constraints.

/44 The duration of the subsistencemay be extended under adverse conditions such as crop failure, etc. - 20 -

(d) record keeping; and (e) preparation for the transfer of settled communities to the provincial administration.

3.14 Land Rights. MOT, in cooperation with the Directorate General of Agraria (DGA), will provide each family with a "right of use" title (hak pakai) to their houselot, extended houselot and farmplot within one year of arrival; and provide land ownership titles (hak milik) for the entire holding, provided it is farmed, within five years of arrival. In accordance with existing regulations, transmigrants will be prohibited from transferring or selling land until after ten years of occupancy.

3.15 Health. Health services will provide anti-malaria protection to new settlers and others living in the area; establish basic health infrastructure; and ensure utilization of services. Health care facilities will be provided at clinics and subcenters. Health services will focus on immunization, nutrition, health education, family planning and environmental sanitation. Construction of a clinic (PUSKESMAS) at each of the project's two secondary centers will be in accordance with INPRES standards and include a building of 80 sq m; 70 sq m for doctors' quarters and two staff buildings of 50 sq m each. Each clinic will be provided with three speedboats. In each village center, the project would establish a subhealth center (sub PUSKESMAS) comprising one room for examination (30 sq m) and one staff building (50 sq m). Malaria control campaigns will be conducted including spraying of houses, the detection of passive cases and treatment. Houses will be sprayed before settlement and at six-month intervals by hired teams. Spraying may be discontinued if malaria prevalence is less than 2%, provided:

(a) malaria surveillance and treatment through passive detection and regular malariametric survey is maintained;

(b) effective maintenance ensures that the canals are generally free from vegetation and silt at all times; and

(c) land excavation does not create mosquito breeding sites.

Passive case detection and treatment will be carried out at clinics. Techni- cal supervision of the campaign wiil rest with the malaria staff at the dis- trict level, administered by the provincial health service.

3.16 Education. The project includes construction of primary schools (grades 1 to 6) in each village center, and a lower secondary school (SMP, grades 7 to 9) in each secondary village.

3.17 Agricultural Development. The agricultural development plan is based on rainfed, wet-season, paddy cultivation which will progressively cover all extended house lots and farm plots. Early maturing paddy varieties will be introduced gradually in order to cultivate a second paddy crop or food crop, such as maize or soybean, during the off-season in extended house lots (para. 5.06). Houselots will be developed with a mixture of perennial crops, especially coconuts, fruit trees, bananas and pineapples, vegetables or other annual crops. During the first year of settlement, DGFCA will provide sett- lers with a package of seeds, planting materials and agrochemicals. Provision - 21 - will be made for supplementaryor replacementsupplies during a second year in the event of crop failure or breakage of tools under normal usage (para. 4.05).

3.18 Three Rural Extension Centers (RECs) will be establishedin the project area as focal points for agriculturalextension activitieswhich will be provided by DGFCA on the basis of one PPL per 500 families with supervisory/technicalguidance support of PPM staff from the time of settler arrival onwards (para. 4.04). Additional specializedtechnical support will be provided by regional subject matter specialists (PPS's) in swampland rice agronomy, pest control, and water/soilmanagement. Two Plant Protection Brigades will be established,one in South Sumatra and another in South Kalimantan (para. 4.06).

3.19 MOT and DGFCA resident staff, assisted by community organizers,will assist settlers to organize hamlet based working groups within three months of arrival. These groups, instructed by PPLs, will work jointly (gotong royong) on land clearing; on-farm development (paddy-fieldbunds etc.); pest control; and water management. Satisfactoryjoint action will qualify the group for participationin an intensificationprogram./45

InstitutionalSupport

3.20 Technical Assistance. The project will provide technical assistance to the following executing agencies in the 30,000 ha scheme and in a number of non-Bank financed schemes (Annex 6):

(a) DOS constructionsupervision staff assigned to ongoing projects in South Sumatra in implementationmanagement: scheduling,selecting cost-effectiveconstruction methods, supervisionand coordination; and PPW staff in establishingeffective O&M of drainage infrastruc- ture in South Sumatra's reclaimed swamps (para. 4.10).

(b) PLP, HQ and field staff in implementationmanagement and improving land clearing methods, specifications,scheduling of various opera- tions (with due regard to seasonal constraints),supervision and optimal participationof settlers (which would ensure them of imme- diate financial benefits but would not appreciablyslow down land development);

(c) MOT's resident field staff in South Sumatra in organizing community efforts in land clearing (of areas not cleared under the project), and final land preparation;

/45 INSUS, one of the intensificationprograms, is an input package consisting of fertilizers,seeds, pesticide and cash offered on favorable credit terms to groups of farmers growing food crops in accordance with DGFCA's recommendations. In 1982 this program covered about 5,000 ha of reclaimed swamps in South Sumatra. - 22 -

(d) AARD in continuingand expanding agriculturalresearch and developmentfor reclaimed swamps (para. 4.08); and

(e) DOS, DGFCA and MOT in monitoring and evaluating swamp developments (para. 4.14).

3.21 Investigations. The project will continue and expand the investiga- tions for potable water supply started in the 9,000 ha project area of the FSRP. Geophysical investigationsfor water bearing zones supplemented,where indicated, by about 10 test borings will be carried out in the 30,000 ha area and at a number of other sites where acute drinking water problems exist. Viable treatment and storage methods of surface water of alternativesources during dry seasons will be investigated.

3.22 Studies. Nationwide reconnaissancestudies, started under the FSRP, will be followed up under this project and some older schemes will be upgraded under the SSRP. Studies will include:

(a) master plans and feasibility studies for reclamationof about 200,000 ha of coastal lands in Irian Jaya identified in the Nationwide Study, and

(b) feasibilitystudies for upgrading the hydraulic infrastructure (rehabilitationof canals and constructionof control structures)of about 35,000 ha of older GOI and spontaneous schemes, and detail design of about 15,000 ha.

3.23 Upgrading Works. A study under the FSRP of 12 existing Government and spontaneousswamp reclamationschemes in South Sumatra and South Kalimantan analyzed physical, agricultural,and socio-economicconditions and developmentconstraints. Three selected schemes have been studied in greater detail with respect to the feasibilityof upgrading the drainage and communi- cation infrastructure(canals, bridges, jetties) and provide water management control structures (mostly small tertiary headgates). Upgrading of infra- structure serving about 5,000 ha will proceed after review of the studies by the Bank, with funds provided under the SSRP. An assurancewas obtained at negotiationsthat GOI would operate and maintain these works satisfactorily (para. 8.01).

Status of Field Data, Planning and Design

3.24 Field Data. Topographicmaps used in planning and design were based on 1:20,000 aerial photos and ground controls (1976), surveys along a 1,000 m spaced grid (1978) and strip surveys checked within allowable altimetric and closure tolerances. Working maps are to a scale of 1:10,000 with 25 cm contours. Detailed soil surveys and soil classificationprepared in 1976/1978 focussed on the proximity to the surface of potential acid sulfate soil and depth of peats. Areas in which potential acid sulfate soils were near the surface or in which peats were deeper than 90 cm were excluded (para. 2.04). Hydrometric data were derived from automatic recordinggauging stations at the mouth of the Lalang River (CAL 1) and some 60 km and 120 km upstream; a recorder on the Sembilang river; and four tide recording gauges. Repeated - 23 -

salinity measurementswere carried out at spring tides in the dry and wet seasons and will be repeated during implementation. Soil mechanic tests were carried out along proposed alignments of canals before designing the canal network.

3.25 Plans and Design. Master plans for a total area of 200,000 ha, including the SSRP project area, were prepared in 1976-1978,and an area of 110,000 ha was identified as suitable for development. The FSRP is located near the southern border of the study area; the proposed SSRP is located in its center bordering on Karang Agung Hilir, a GOI financed development in the northeasternquadrant. Detailed designs for the primary and secondary hydraulicnetwork of the project areas were completed in March 1983. Prequal- ification of civil works contractors and preparationof contract documents for main civil works under the guidance of consultants(financed under the FSRP) has been completed.

ImplementationSchedule

3.26 Bidding by prequalifiedcontractors for main civil works started in March 1984. Bids will be opened in May 1984 and evaluated by August 1984. Under current procedures,main contracts will be awarded by November 1984 and constructionshould start in April 1985. As the hydraulic network is composed of 19 separate systems, works may be constructed in parallel under one or two main contracts and completed by mid-1990. These contractswill include mecha- nically constructedprimary and secondary canals, ancillary structures and base camp. As soon as the first primary systems are completed, other contrac- tors will start land clearing for houselots and settlements,and houses will be constructedcontinuously at a rate of about 325/month (Annex 2, Table 9). Both operations are scheduled to continue year-round for four years but final land clearing operations will take place mostly in the dry season. The first groups of settlers, of about 500 families,will arrive in April through June 1986. Subsequent groups will arrive during the following three years (Annex 2, Table 9). About 85 man-days are estimated for land clearing of one ha in this area and about 100 man-days for tertiary construction. Settlers could provide up to 65% of this labor requirementwithout slowing the pace of developing and cultivating their own land (para. 3.06). An assurancewas obtained at negotiationsthat GOI would construct project works and carry out settlement activities in accordance with an implementationschedule (Table 8.1) agreed with the Bank (para. 8.01).

Consulting Services

3.27 Consulting services for institutionalsupport (Annex 6) will be provided by local consultants,supplemented by expatriatesin specialized fields. Services will be rendered in constructionsupervision, implementation management and O&M, project preparation,upgrading of older developments, agriculturalresearch, land clearing, final land preparation through Community Action and monitoring and evaluation,as shown in Table 3.2. Assuranceswere obtained at negotiationsthat consultants,whose qualifications,experience, terms and conditions of employmentare acceptable to the Bank, would be engaged not later than indicated in the ImplementationSchedule (Table 8.1) by DOS, AARD, DGFCA and MOT (para. 8.01). - 24 -

Table 3.2: CONSULTING SERVICES

Man-months Local Local Base costs Executing Expat- profes- techni- Total agency Subject riate sionals cians (US$ mln)

DOS Technical Assistance 1. Implementation,management, construction and O&M 106 132 330 1.93 2. Mater plan studies 95 164 350 1.91 3. Feasibility det. design, supervision of upgrading older schemes 45 168 450 1.41 4. Monitoring and evaluation 38 56 56 0.65 5. Drinking water investigations - 71 140 0.32

Subtotal 284 591 1,326 6.22

AARD 6. Agricultural research & development 96 360 - 2.05

DGFCA 7. Monitoring & evaluation 28 80 80 0.62

MOT 8. Final land preparation through community action - 108 - 0.27 9. Monitoring and Evaluation 16 32 32 0.30 10. Implementationmanagement and methods impovement, land clearing 36 - - 0.43

Subtotal 52 140 32 1.00

Total 460 1,171 1,438 9.89 Table 3.3: PROJECT COST SUMMARY (rounded figures)

Rp billion US$ million % of foreign % of total Local Foreign Total Local Foreign Total exchange base costs

Reclamation and Settlement Civil works 13.7 13.4 27.1 13.7 13.4 27.1 49.4 38.8 Transmigration 17.3 5.6 22.9 17.3 5.6 22.9 24.4 32.8

Subtotal 31.0 19.0 50.0 31.0 19.0 50.0 38.0 71.6

Institutional Support Expatriate consultants 0.6 4.7 5.3 0.6 4.7 5.3 88.6 7.6 Local professionals 1.5 1.1 2.6 1.5 1.1 2.6 42.3 3.7 Local support staff 0.8 0.5 1.3 0.8 0.5 1.3 100.0 1.9 Training - 0.2 0.2 - 0.2 0.2 100.0 0.3 Equipment 4.3 4.3 - 4.3 4.3 100.0 6.2 Drilling & testing - 0.1 0.1 - 0.1 0.1 100.0 0.1 I Test farms and facilities 0.5 0.2 0.7 0.5 0.2 0.7 28.5 1.0 i Lni Subtotal 3.4 11.1 14.5 3.4 11.1 14.5 76.5 20.8

Engineering and Administration 5.3 0.0 5.3 5.3 0.0 5.3 0.0 7.6

Total Base Line Costs 39.7 30.1 69.8 39.7 30.1 69.8 43.1 100.0

Physical contingencies 6.2 4.6 10.8 6.2 4.6 10.8 42.6 15.5 Price contingencies 20.1 7.6 27.7 20.1 7.6 27.7 27.4 39.7

Total Project Cost 66.0 42.3 108.3 66.0 42.3 108.3 39.2 155.2

Front-end fee 0.0 0.2 0.2 0.0 0.2 0.2 100.0 0.3

GRAND TOTAL /a 66.0 42.5 108.5 66.0 42.5 108.5 39.2 155.4

/a Including taxes on civil works of $1.3 million. - 26 -

Cost Estimates

3.28 Total costs are estimatedat $108.5 million (including a front-end fee of about $0.2 million and taxes on civil works of about $1.3 million) of which $42.5 million (or 39.2%) will be foreign exchange. Project costs are expressed in end 1983 prices, and an exchange rate of Rp 1,000 = US$1.00 is used in this report. Unit prices for civil works are based on contracted costs of the FSRP and other GOI projects in the area. Land clearing costs are based on GOI's recent contracts, adjusted for medium to dense forest cover. Quantities of primary and secondary canal systems have been derived from detailed plans, and those of tertiariesfrom quantities based on average ground levels. Costs of houses, community facilities, transport and support to transmigrantsare all based on current GOI contracts. Costs of agricul- tural research and support are based on recent AARD and DGFCA data. A 15% allowance has been included for physical contingenciesexcept land clearing for which an allowance of 30% has been included. Price contingenciesare based on local inflation of 12% in 1984, 10% in 1985-1987, 9% in 1988, 7% in 1989 and 6% thereafter;and on foreign cost inflationof 3% in 1984, 7.5% in 1985, 9% in 1986-1988, 7% in 1989 and 6% thereafter. Details of project costs are given in Annex 1, Tables 1, 2, and 5 and summarized in Table 3.3. Total costs of the overall 8-year developmentare estimated at $120.8 million (Annex 1, Table IA).

Financing

3.29 The proposed Bank loan of $65.0 million will finance foreign exchange costs of about $42.50 million and $22.5 million of local costs. This represents about 60% of total project costs exclusive of taxes. GOI will finance the balance of project costs of $43.5 million (Table 3.4), and another $12.3 million to complete the program beyond the six-year time slice financed by the Bank. An assurance was obtained at negotiationsthat GOI would com- plete the balance of this development program not financed under the project in a timely and efficient manner, not later than December 1991 as set out in the ImplementationSchedule (para. 8.01). GOI will furnish support and supplies to all settlers for 18 months following settlement.

Table 3.4: FINANCING PLAN

Source Local Foreign Total ------($ million) ------

Bank 22.5 42.5/a 65.0 GOI 43.5/b 0.0 43.5

Total 65.0 42.5 108.5

/a Includes $0.2 million front-end fee. 7-b Includes $1.3 million of taxes on civil works. - 27 -

Procurement

3.30 Constructionof primary and secondary canals and structures has been grouped in two schedules (one will include constructionof the base camp) of about $7.5 million each /46 which are being procured under ICB in accordance with Bank guidelines. Other civil works will be highly labor intensive,and not attractive for internationalbidders. These works will be grouped in appropriate packages (ranging between $0.8-$1.5million) procured in accordance with LCB procedures acceptable to the Bank and will include:

(a) clearing of houselots, extended houselots and villages under no more than four contracts;

(b) constructionof houses and village facilities under not more than twelve contracts;/47and

(c) clearing of farm plots and constructionof tertiariesunder not more than seven and six contracts respectively.

Equipment includingdraglines, and workshop equipment (about $1.6 million or 30% of equipment acquisitions)will be procured through ICB, other lab, field surveying,boats and radio equipment (about $2.6 million or 55% of equipment acquisitions),which will be procured in small packages, not suitable for ICB will be procured through LCB. About $800,000 worth of special lab and survey equipment will be procured on the basis of three quotations. Civil works and equipment will be procured by DGWRD's executing agency; land clearing and housing by MOT's executing agencies (PLP and DGSP); and consultant services will be procured by DOS, AARD, DGFCA and MOT (para. 3.27), using contract documents approved by the Bank. DGFCA will procure seeds, planting materials, agrochemicalsand furnish plant protectionbrigades and demonstrationplots. Paddy-fieldbunds will be constructedby settlers under a DGFCA sponsored rice land formationprogram.

3.31 Review of Procurement. Procurement is reviewed by the secretariat of each ministry and for contracts larger than $500,000, clearancemust also be obtained from SEKNEG - the State SecretariatProcurement Control Unit. The Bank supervisescontracts through RSI (ResidentStaff, Indonesia)which works closely with these agencies on procurementmatters. The Bank will review prior to tenderingall contracts in excess of $1 million including ICBs, larger LCBs (about 50% of all civil works) consultant contracts and contracts for goods estimated to cost the equivalent of $200,000 or more, and review smaller contracts,after award on a sample basis. Other contractswill be

/46 October 1983, baseline costs and price contingencies.

/47 Experience in the constructionof the FSRP showed it to be more economic to clear land and construct houses under separate contracts. In the SSRP, four contractorsmay be engaged simultaneouslyin housing construction. - 28 - controlledby GOI's procurementcontrol units, and reviewed by the Bank on a sample basis after award. Table 3.5 summarizes procurementarrangements.

Disbursements

3.32 Disbu;rsementfor works and equipmentwill be made at the following rates:

Category Disbursementrate (%)

(a) Major civil works - ICB contracts; 100

(b) Minor civil works (tertiaries,hamlet drains, paddy--fieldbunds, small structures,land clearing, upgrading and housing construction); 60

(c) Imported equipment and materials; 100 (of foreign exchange)

(d) Imported equipment and materials procured locally; 60

(e) Locally manufacturedgoods; 95 (ex factory)

(f) Local and expatriate consultant services, travel costs and per diems for training; 100

(g) Water well drilling and testing 100

Disbursementwill be made against contracts,but constructioncosts of hamlet drains, paddy-f'ieldbunds, and training,will be disbursed based on statements of expenditure (Annex 5).

3.33 Annex 1, Table 3 gives estimated disbursementscompared with a profile of disbursementsfor TransmigrationProjects I and II (Loans 1318-IND and 1707-IND). Though the hydraulic infrastructureof the SSRP is more complex than that of upland developmentsin TransmigrationProjects I and II, it can be constructedat a similar rate with proper equipment and under proper management which the SSRP is expected to demonstrate. Disbursementsduring initial years reflect relatively fast disbursing consulting services. They are expected to continue about 6 months beyond completion as experiencedin transmigrationprojects disbursing for similar works.

Accounts and Audits

3.34 Assurances were obtained from GOI that:

(a) implementingagencies and directoratesparticipating in the project would maintain separate records and accounts related to the project;

(b) accounts would be audited annually by independentauditors acceptable to the Bank; and - 29 -

Table 3.5: PROCUREMENT ($ Million)

Exec. agency Category ICB LCB Other Total/a Loan

Civil Works P3S Main civil works 15.35 - - 15.35 15.40 /b Tertiaries, hamlet drains 6.00 2.15 8.15 4.90

DGFCA Field bunds - 1.86 1.86 1.20/b

PLP Land clearing - 6.51 - 6.51 4.20 /b

Settlement MOT Housing and villages - 22.64 - 22.64 13.00 MOT Mobilization and transport - - 11.23 11.23 0

Subtotal 15.35 35.15 15.24 65.74 38.70

Support Works DOS Water supply (drilling, testing) - 0.18 - 0.18 0.19 /b DOS Upgrading works - 6.07 - 6.07 4.00/b AARD Test farm, facilities - - 0.86 0.86 0.50

Subtotal 6.25 0.86 7.11 4.69

Equipment DOS Base camp - 0.55 0.13 0.68 0.68 DOS Wells - 0.10 - 0.10 0.10 PPW Operation and maintenance 1.60 - 0.26 1.86 2.06 AARD Agri. research equipment - 1.81 0.41 2.22 2.30 DGFCA Plant protection - 0.12 - 0.12 0.20

Subtotal 1.60 2.58 0.80 4.98 5.34 /b

Consultants DOS Studies, implementation - - 7.38 7.38 PLP Land clearing - - 0.53 0.53 MOT Land preparation, monitoring - - 0.75 0.75 AARD Agricultural research - - 2.08 2.08 DGFCA Monitoring - - 0.80 0.80

Subtotal 11.54 11.54 11.85 /b

(All) Training - - 0.25 0.25 0.23 Engineering and admin. - - 7.85 7.85 0

Total 16.95 43.98 36.54 97.47 60.81

Physical contingencies/ Unallocated - - 10.79 10.79 4.03

Total - - - 108.26 64.84

Front end fee 0.16 0.16 0.16

Grand Total 16.95 43.98 47.49 108.42 65.00

/a Base cost plus expected price increases.

/b Providing part of physical contingencies - 30 -

(c) audited reports and copies of statements of expenditure (SOE) would be forwarded not later than nine months after the end of each fiscal year, to the Bank and to MOT's coordinatorof Bank financed transmi- gratLon projects who would submit them to the Bank in a summarized form together with the auditor's comments and opinions not later than ten months after the end of each fiscal year (para. 8.01).

EnvironmentalEffects

3.35 The environmentalimpact of the SSRP will be minor. Mangroves, the source of food for coastal fish and shrimp, will be preserved and the use of pesticides will be controlled to prevent toxicity in drainage effluents. Environmentalimpact studies begun under the FSRP (para. 1.19) will be expanded to collect data on the impact of larger-scaleswamp developmentsin South Sumatra and South Kalimantan on water and soils quality, fish, shrimp, pests, insects, and diseases (para. 4.14).

IV. ORGANIZATIONAND MANAGEMENT

Executing Agencies and Coordination

4.01 Background. Between 1978 and 1983 all transmigrationprojects, including swamp reclamation,were implementedby line agencies from different ministries in accordancewith PresidentialDecree 26/78. Under this decree, the Ministry of Public Works was responsiblefor site selection, surveys and investigations,construction of the infrastructureand land clearing; the DirectorateGeneral of Transmigrationwas responsiblefor settlement support of new settlers and community development;the DirectorateGeneral of Food Crops Agriculture provided agriculturalsupport services, inputs and extension; and the Directorate General Agraria (Ministryof Interior)was responsiblefor cadastral surveys and registrationof land titles. The Office of the Junior Minister for Transmigrationcoordinated implementation schedules, budgets, externally assisted projects and identified policy issues for discussionwithin BAKOPTRANS./48

4.02 In March 1983 the Ministry of Transmigration(MOT) was reorganized (para. 1.10), assumed the coordinationfunction of the Junior Ministry, and absorbed PLPT (now PLP) and TransmigrationPlanning (DITADA) from the Ministry of Public Works. MOT has now two DirectorateGenerals. The DG of Settlement Planning (DGSP) is responsiblefor planning and executing physical works and settlement,and the DG Mobilizationand Guidance (DGMG), is responsiblefor the support of settlers until about five years after settlementwhen adminis- trative responsibilityis transferredto local government. TransmigrationIV (Loan 2288-IND) provides a Special CoordinatingUnit in MOT for Bank Group assisted transmigrationand swamp reclamationprojects (Figure 4.1), and the FSRP (Loan 1958-IND) provides additional consultant assistance (during 1983- 1986) to coordinate implementationin swamp reclamation projects.

/48 TransmigrationPolicy Board. Figure 4.1

- 31 -

INDONESIA THE SPECIALUNIT FOR BANK GROUPASSISTED TRANSMIGRATION PROJECTS OrganizationChart

BAKOPTRANS IMPLEMENTING Interministerial _------DEPARTMENTS Policy Board-r…DEPARTMENTS

SATDAL TRANS PROJECTS IMPLEMENTING Coordinating Board ------COORDINATORP DIRECTORATE for ImplCmentation GENERALS

ADVISORS

SPECIAL UNIT

.SATB IN TR ANS . P iMP R OS Provincial Level BANKASSISTED PROJECTS D.G. PROJECT Coordinating Board B ENERALSEDROJENTS HEADS

_I _ _ __GENERAL SERVICES UNIT

KORWIL/KORLAP Area Coordinators I I ___j SUB-UJNITS j

I I ! II, I,IlI&IV ~~~SWAMPS, !~~~~~~I

, ~~~L._. . I

..-- Special Unit …Liason with Special iunit

Note: Acronyms Correspond to Abbreviated Agency Titles in Indonesian World Bank-24682 - 32 -

4.03 Implementationof the SSRP. The overall responsibilityfor coordi- nating implementionof the SSRP rests with MOT. The Ministry of Public Works will be responsibleonly for the infrastructurewhile MOT will be responsible for land clearing, housing, settlement, guidance and support. DGFCA will be responsiblefor an input package and support agriculturaldevelopment, while social services to newly created communitieswill be provided by respective ministries, coordinatedduring initial years by the Ministry of Transmi- gration. An assurance was obtained at negotiationsthat MOT would appoint a qualified resident project manager and post him by July 1985 (para. 8.01). He will be backed by MOT's provincial director (KAKANWIL) and by the sub- coordinatorfor Bank-financedprojects. Constructioncontracts will be managed by respective line agencies (Table 3.1) through site managers supported by each agency's provincial and HQ offices and assisted by consul- tants. To synchronizeactivities site managers will attend monthly meetings chaired by MOT's KAKANWIL, reporting progress of activities and adjusting schedules and attend monthly technicalmeetings chaired by MOT's project manager. Executives of line agencies will attend these meetings if required. Informationfrom the field will be routinely transmittedto MOT's subcoordinatorfor Bank assisted projects who will monitor overall progress of works; intervenewith agencies as necessary; liaise with the Bank; and submit quarterly, semi-annualand annual consolidatedprogress reports.

AgriculturalSupport

4.04 AgriculturalExtension. Two middle-levelextension workers (PPMs) and about ten field extension workers (PPLs) and one pest observer will be appointed to each of the three rural extension centers (RECs) to provide extension services that will focus on selection of varieties, cultural prac- tices and pest control. Three subjectmatter specialists(PPSs) in rice agronomy, soil and water management and plant protection,stationed in South Sumatra, will visit each REC fortnightlyto provide in-service training and technicalguidance to the PPM/PPL. PPSs and field extension staff will cooperate with AARD research officers in planning and supervisingextension trials on farmers' fields.

4.05 Farm Supplies. DGFCA will be responsible for supplyingplanting materials and pesticides to each settler family (Table 4.1). Seeds and planting materials will be for first season planting of houselots and farm plots, with additional supplies of seeds and pesticides the second year. DGFCA will assist in procuring paddy seed of suitable local varieties until land development has advanced sufficientlyto introducehigh yielding varieties and a crop intensificationprogram. An assurance was obtained at negotiationsthat MOA would extend an intensificationprogram to the project area in accordance with a schedule satisfactoryto the Bank (para. 8.01). Improved paddy varieties will be supplied initially from DGFCA's seed farm at Upang; at a later stage (from about year 5 or 6 after settlement)DGFCA will supervise the ,productionof extension seed by selected farmers participating in the INSUS program. At full development the quantity of paddy seed (assuming seed replacement every fourth season) amounts to about 150 tons. Assurances were obtained at negotiationsthat MOT in cooperationwith DGFCA and the Ministry of Cooperatives(MOC) would cause depots or kiosks to be establishedin the second year of the project in the project area and cause - 33 -

Table 4.1: PLANTING MATERIALS AND AGROCHEMICALPACKAGES

Quantity per family Unit cost Total cost (kg) (Rp) (Rp)

Houselot Seed Package I /a Paddy 2.0 300 600 Maize 2.0 250 500 Groundnut, soybean, munghean 5.0 700 3,500 Vegetables 0.5 5,000 2,500 Spices 0.5 2,000 1,000 Packaging,labelling, transport - - 3,500

Subtotal 11,600

Houselot Planting Materials Package II /b Cassava, sweet potato 2,500 Fruit trees 7,500

Subtotal 1O,OOO

Farm Plot Package (1st year) /b Seeds Paddy 20 300 6,000 Maize 10 250 2,500 Groundnut, soybean 15 700 10,500

Subtotal 19.000

Pesticides Seed treatment 0.25 400 100 Insecticide 2.00 1,500 3,000 Rodenticide(including baits) 2.00 500 1,500 Other agrochemicals 0.50 3,000 1,500

Subtotal 6,100

Local Transportation - A,400-10,400

Total (first year package) 50,100-57,100

Farm Plot Package (2nd year) /b Seed (paddy/otherfood crops) 20 300 6,000 Pesticides (same as Year 1) - - 5,600

Local transportation - 1,400-3,400

Subtotal (second year package) 13,000-15,000

/a Procured in area of settler origin. /b Procured in area of settlement. - 34 -

them to be stocked with farm supplies, pesticides,fertilizers, tools and equipment spare parts for sale to settlers (para. 8.01). The MOT site manager will monitor demand in individual villages and advise MOC staff who, in consultationwith DGFCA project staff, will order supplies.

4.06 Pest Control. DGFCA will establish two plant protection brigades for pest control in coastal swamp areas of South Sumatra and South Kalimantan and an assurance to this effect was obtained during negotiations(para. 8.01). These brigades will operate under DGFCA's regional crop protection centers at Palembang and Banjarmasin /49 and will provide equipment and supplies to support settlers to combat crop pest and disease outbreaks,which settlers are unable to control on their own. These units will also assist in formulating and implementingcommunity campaigns against rats, wild boars and insect pests, such as the rice bug and stem borer. Pest observers, attached to RECs will be responsible for monitoring and early warning of pests and diseases; assessing crop damage; providing technical recommendationsand guidance to PPM/PPLs and alerting pest brigades on timing and on required action.

4.07 AgriculturalResearch. AARD, supportedby consultants,will conduct research aimed at improvingagricultural development of coastal swamps through crop intensificationand diversification. This will entail research into farming systems; plant protection; field water management; soils and plant nutrition; varietal testing; livestock; industrial crops and aquaculture. Research activities will be conducted mainly at three test farms, namely, Tamban Luar (Central Kalimantan);Alabio, (South Kalimantan),and Upang, (South Sumatra). In addition, studies and trials will be undertakenon farmers' fields.

4.08 AARD will be responsiblefor preparing detailed annual plans, sche- dules, and budgets and setting up a Project CoordinationUnit for coordinating research,management of test farms, procurement,supervision of consultants, and reporting. Each research componentwill be headed by an AARD team leader, advised by part-time AARD specialists,carried out by a team of about nine to twelve full-timeAARD technicians. Expatriate and local consultants (Table 3.2) will be assigned to assist research, especially during initial years. Technical and institutionalsupport to test farms will be given by the Central Research Institute ror Food Crops (BARIF) at Banjarmasin,and other specialized research institutes./50 The SSRP will finance a three year time-slicewhich will enable AARD to undertake important research activities in a timely manner at the start of Repelita IV (1984-88), and to integrate this into a longer term, national program of multi-disciplinaryresearch. An assurance to continue research beyond the three year Bank-assistedtime slice was obtained at negotiations(para. 8.01).

/49 The Palembang center provides technical services for the provinces of Lampung, South Sumatra and Bengkulu; the Banjarmasincenter for the provinces of Kalimantan.

/50 SSRP, Working Paper #1, Project Files. - 35 -

Operation and Maintenance (O&M)

4.09 Background. During the past years of rapid developmentof drainage- reclamationworks GOI gave priority to opening up new areas; this involved constructionof nearly 2,000 km of large navigation and primary drainage canals and a similar length of smaller drains. However little attentionwas paid to maintaining this vast network except for emergencyworks when naviga- tion canals became impassable at low tides. Generally, drainage systems in tidal areas are not subject to heavy siltation as are most irrigation systems, but canal banks have to be regularly shaped, and rapidly growing vegetation has to be periodicallyremoved, particularlyfrom canals which are dry part of the time. These requirements,as well as operation of gated control struc- tures to be built, will have to be met in the future.

4.10 Responsibility. O&M of drainage systems in reclaimed swamps would be executed in the same manner as O&M of irrigation systems: Government, through the Provincial Public Works Services is expected to operate and main- tain navigation canals, primary and secondary drains; and settlers, through existing hamlet groups, will operate and maintain tertiary systems. In prac- tice, however, the responsibilityfor O&M of main and secondary systems has not been transferredfrom the executing agency (formerlyP4S now P3S) to provincial public works (PPW) in any GOI swamp reclamationproject as PPW has not been given, in the past, the mandate, manpower and funds. In fiscal 1984/85 however GOI provided about Rp 2 billion ($2 million) to initiate O&M of drainage infrastructurein reclaimed swamps of which about Rp 700 million ($0.7 million) is earmarked for South Sumatra and the SSRP will assist PPW in establishingan O&M unit for reclaimed swamps in the province. Technical assistancewill be provided to define maintenance and operation equipment requirements,specifications, organizational arrangements, job descriptions, procedures,preparation of plans of operation, schedulesof activities,and preparationof budgets for an expanding program. Assistance will also be provided for procurementof equipment for start-up operations,demonstration and training in a number of GOI projects in South Sumatra (para. 3.20).

4.11 As in irrigation systems, tertiaries will be maintained by settlers. This will not impose undue physical or organizationalburdens. In planned swamp developmentstertiaries serve only one hamlet (of about 14-18 families) and each family would have to spend only about a day a month clearing vegeta- tion and debris. MOT's group leaders (accompanyingsettlers during initial years) will stress the importanceof this to settlers at orientation (para. 3.12) and assist them in organizing hamlet groups. Operation and maintenance of tertiary control gates requires basic technical skills and organizationalarrangements which will be provided by PPW. P3S would assume this responsibilityin cases where tertiary (or secondary) structures are constructedbefore projects are officially turned over to PPW. Annual maintenance costs are estimated as $17.50/ha.

4.12 Public facilities such as schools, health centers, religious insti- tutions and police stations will be operated and maintained by appropriate ministries as in all transmigrationschemes. Agriculturalsupport will be provided by DGFCA and village cooperativeswill be initially supported by MOT and transferredto DGC when they become financiallyviable. An assurance was - 36 - obtained at negotiationsthat GOI would allocate adequate funds to operate properly and maintain all infrastructureand public facilities constructed under the project, and ensure timely release of funds (para. 8.01).

Monitoring and Evaluation (M&E)

4.13 Project Implementation. During implementation,physical progress and expenditureswill be monitored by MOT's project coordinatorand his staff (para. 4.03), assisted by a consultant provided under the FSRP (Loan 1958-IND)

4.14 Environmentaland Socio-EconomicImpact Evaluation. Continued improvement of swamp developmentrequires systematicmonitoring and evaluation of physical and socio-economicconditions in older as well as more recent developments. Thus while focussing on critical and readily assessable features such as soil conditions (peat subsidence,pH), water quality, crop-- ping and yields in the developmentareas, attentionwill also be given to changes in water quality and fishlife in the vicinity. For this purpose the program will include monitoring (a) of the Calik and Lalang rivers in South Sumatra and the Barito and Kapuas rivers in Kalimantan, and (b) of soil, water, and socio-economicconditions at the site of the SSRP and three other sites to be selected. The program, which will be coordinatedby MOT, will be carried out by appropriate line agencies, assisted by consultants. To establish base line references,operations will commence in May 1986 and continue throughoutthe project. MOT will (a) be responsiblefor preparing and submitting a benchmark report by December 31, 1986 and starting May 1988 and thereafterby May 1, annual summary evaluationswhich will be assessed by GOI and the Bank, (b) cause relevant agencies to take remedial actions to protect soils and environment,(c) take steps to provide feedback in planning new developments,and improving subsequent M&E. An assurance was obtained at negotiationsthat MOT would carry out these tasks (para. 8.01). Activities will, inter alia monitor:

(a) Physical changes: soils (DGFCA); river water quality (DPMA); con- dition of infrastructure(stability and shape of sections - P3S); flooding in project areas (P3S); water quality in drains (P3S); fishlife in the rivers (AARD);

(b) Agriculture: Land development (DGFCA); crops and yields (DGFCA); pest and disease problems (DGFCA); and

(c) Socio-Economy: Settlers'family labor employment;on and off-farm employment (MOT); farm budgets (MOT); regional labor markets (MOT); and institutionaldevelopment (MOT). - 37 -

5. AGRICULTURALPRODUCTION

Agriculture in NeighboringAreas

5.01 Narrow strips of land near the project area along the Lalang River and in the villages of Sungai Dua and Teluk Bayur have been cleared by sponta- neous settlers and are partly under rice. The bank of the Calik river, near the village of Panuguan is under rice and coconuts. Land holdings range in size from house lots of less than 0.2 ha, to holdings of more than 6 ha with an average holding of about 2.5 ha. Of this, about 1.9 ha is under paddy, 0.5 ha under coconuts and about 0.1 ha is under other food and tree crops, especially bananas. Land preparationfor a single wet season paddy crop consists of cutting and burning of bushes and grasses with minimum tillage, and there is extensiveweed growth. Rice varieties are locally adapted types with a 7 to 8 month maturation period which includes a two-stage nursery of 2-1/2 to 3 months duration. Double transplantingenables developmentof large seedlings which are resistant to floods. Pests (especiallywild boars and rats) and weeds are major problems. No fertilizersare used and yields generally do not exceed 2 tons dry paddy per ha.

5.02 Coconuts are often planted on 50 cm to 1 m high mounds with paddy grown as an intercrop until overshaded by the palms. If drainage is adequate, coconuts become the sole crop. A full stand of coconuts consists of about 160 palms per ha and good yielding local varieties on better drained river bank soils produce about 7,000 to 8,000 nuts/ha/yearat maturity. Bananas, a popular perennial crop, are mostly planted near houses or other well drained sites. Houselots may also contain some maize, cassava or vegetables, such as long bean, sweet potato and chillies.

Farm Development Patterns

5.03 The basic cropping pattern of the SSRP will follow that of the FSRP focussing on establishingas quickly as possible the house lot garden with a wide variety of annual and perennial food crops,/51 together with a progres- sively increasing paddy crop. In later years some settlers may opt for more tree crops, especially coconuts, which will be planted on higher parts of the farm or on bunds (the "surjan" system). Some farms may be more suitable than others (by location, drainage or soil characteristics)for growing secondary food crops (palawija) such as corn, groundnuts,or soybeans,which will be exploited once basic farm developmentis completed. The expected cropping patterns and monthly rainfall distributionare shown in Annex 2, Figure 1.

/51 Includingcoconuts, bananas, cassava, taro, corn, rice, pineapple, peanuts, various fruits and vegetables. To simplify the agriculturaland economic analysis, it is assumed that the houselot (0.25 ha) will be used for building (0.05 ha), coconuts (0.1 ha), bananas (0.1 ha) and inter- cropped with secondary crops (corn). - 38 -

Land Developmentand Cropping

5.04 Upon arrival, each settler family is given a cleared house lot, an 'extendedhouselot', and a partly cleared farm plot of 1.75 ha (para. 3.07). Experience shows that settlers develop and cultivate houselots within two to three months after arrival. Thus settlers arriving in the spring (March-June) will have time to participatein clearing farm plots and cultivate a part of each farm plot in their first settlementyear. Settlers arriving over the rest of the year will be able to start cultivatingfarm plots only in the following year. Land preparationmethods will emphasize minimum disturbance of top soil and technicaladvice will be given to farmers by PPLs.

5.05 Felling and cutting of trees will be carried out by contractors using power tools and specializedcrews, while settlers will be able to participatein all other clearing activities (windrowing,burning, final clearing, final burning) (para. 3.06). Activities not financed under the project, which have taken up to seven years in other projects, will be completed in about three years with assistance from MOTgroup leaders and consultants. Satisfactoryperformance by settler groups will enable them to participatein INSUS or similar type credit program (para. 3.19).

5.06 In early years, locally adapted longer maturing paddy varieties will be grown until fields are cleared of stumps. Improved shorter-termpaddy varieties with fertilizer inputs will then be introduced, together with dry season cropping with secondary food crops in extended houselots. Traditional paddy varieties take about 220 days from nursery sowing to harvest. Sowing will take place in October/November;transplanting in December/January;and harvesting in May/June. When improved short-term varieties (about 135 days) are introduced,land preparationwill consist of slashing weed growth and burning at the beginning of September. Sowing will start about mid-September and transplantingin October. This will enhance crop growth during the rainy months of November/Decemberand enable harvesting to take place in February. Thereafter,land preparationand planting of other annual crops, such as corn, may take place in mid-April in extended houselots and may also be extended by entrepreneurialfarmers to farm plots. However, this may be an exception rather than the rule, and hence dry season cropping farm plots has not been considered in the economic analysis.

Yields

5.07 Projected initial and target crop yields and estimated development periods are suimmarizedin Table 5.1. These are based on experience in neigh- boring areas where agriculturaldevelopment has been ongoing for about 13 years. In some localitieswith strong extension support, and incentives such as the INSUS credit program, paddy yields in excess of 3 t/ha are being attained, though on average, present yields are about 2 t/ha. A projected average yield of 2.5 t/ha within 7 years is considered realistic. - 39 -

Table 5.1: PROJECT CROP YIELDS

Target Initial yield (with Development Crops yield project) period

…------t/ha ------

House Lot Paddy 1.0 2.6 7 years Corn 0.6 1.2 4 years Coconuts (nuts/ha) 1,500 8,500 14 years Bananas (bunches/ha) 600 1,200 7 years

Farm Plot Paddy 1.0 2.5 7 years

Crop Production

5.08 Crop production and family consumptionat full development (1998) are summarized in Table 5.2. By the late 1990s, farmers in the project area are expected to produce a marketable surplus of about 46,000 tons of paddy (or about 30,000 tons of milled rice), 1,600 tons of corn or other secondary food crops, and the equivalent of 1.5 million fresh coconuts, 240 tons of coconut oil and 450,000 bunches of bananas.

Table 5.2: AGRICULTURALPRODUCTION AND MARKETABLE SURPLUS

Production at Estimated family Marketable Crop full development consumption surplus

Paddy (tons) 58,000 12,000 46,000 Corn (tons) 4,850 3,300 1,550 Fresh coconuts ('000 nuts)/a 4,675 3,095 1,580 Coconut oil (tons) /a 700 460 240 Bananas ('000 bunches) 1,320 870 450

/a Coconuts are expected to be consumed equally fresh and as oil.

Pest Control

5.09 Extension staff will guide farmers in zinc phosphide baiting against rodents when land preparation commencesand through the nursery stage. Inten- sive baiting with anticoagulantpoisons will be carried out at least twice during the early growth stages, and fumigation of burrows will be undertaken during the grain ripening period through harvest when poison baiting is not - 40 -

effective. Further baiting with anticoagulantpoisons will be done during the fallow period between wet and dry season plantings. The extension service will receive practical training in poison baiting and fumigationmethods /52 and will be responsible for training and organizing farmers to conduct sustained communitypest control operations.

Drying, Storage and Processing

5.10 Most settlerswill be experiencedpaddy producers accustomed to sun- dry paddy on mats, and storing dry paddy for home consumption. The BUUDs/KUDs will be equipped with concrete drying floors, and private millers or traders, who are expected to move into the area, will also provide paddy drying and milling facilities.

Livestock and Fisheries

5.11 Chickens and ducks are the most popular livestock in swampland settlements. Based on past experienceeach family will acquire chicks with their own resources and raise 20-30 birds fed with farm by-products. Poultry products are easy to sell on local markets, and will provide settlers an estimated yearly net income of about Rp 24,000 per family. Cattle, sheep and goats are less popular in these settlements,especially since cattle cannot be used for cultivatingsoft swampy soils.

5.12 Fishing in rivers, estuaries and mangroves (leased from margas at annual auctions, para. 2.13) will be an important off-farm activity.forabout 30% of transmigrationfamilies, particularlychildren./53 Research aimed at increasing returns from fishing are included in AARD's activities (para. 4.07).

VI. MARKET PROSPECTS,PRICES, FARM INCOMES AND PROJECT CHARGES

Market Prospects

6.01 Rice, the major crop to be produced under the project, has good market prospects,especially in the south Sumatra region which has an annual deficit of about 100,000 tons, and no nearby surplus production areas.

6.02 Palembang will be the major market for surplus produce including rice, corn, coconuts, bananas, and poultry. There are no major difficulties anticipated inImarketing output as transportationfacilities by waterways are adequate. In addition to well establishedprivate market channels, settlers have access to government price support systems under which village cooper- atives (BUUD/KUD)maintain a floor price for paddy and other food crops.

/52 Through courses organized by the pest observers attached to RECs.

/53 Agro-Socio Economic Surveys in the Lalang Area, IPB, Bogor, March 1980. - 41 -

DOLOG, the provincial branch of BULOG, will arrange the transportof paddy purchased by cooperativesin the project area to its warehouses in Palembang.

Prices

6.03 Farm inputs and outputs are valued in constant end 1983 prices in farm budgets and economic analyses. Economic prices for rice, corn, coconut oil, and fertilizer are based on July 1983 world market price forecasts for 1985, 1990 and 1995 by the Bank's Commoditiesand Export ProjectionsDivision, adjusted for transportation,processing, and handling costs to the farm gate level as shown in Annex 2, Tables 1 and 2. Financial prices for all commoditiesand economic prices for fresh coconuts, bananas, and others not traded on internationalmarkets, have been updated from actual farm gate prices. In the project analysis, projected economic and financial prices for 1985, 1990 and 1995 represent prices during the periods of 1985-1989, 1990- 1994, and 1995 onwards respectively.

6.04 In the past, GOI maintained consumer food prices at a low level by selling imported rice below cost and by keeping domestic floor prices low. To offset an adverse impact on producers, GOI subsidized fertilizer and pesticide prices. In recent years, however, GOI has considerablyraised paddy floor prices to encourage rice production. Before the March 1983 Rupiah devaluation the floor price for paddy of Rp 145/kg (US$207/t) was actually higher than the economic price of US$197/t while the current floor price of Rp 150/kg ($150/t) is about 24% lower than the economic price. For project analysis, financial prices of paddy, corn and coconut oil have been assumed to converge with economic prices, equaling them by 1995. To reduce subsidies and discourage excessive use of fertilizers,GOI raised the price of urea and TSP in early 1983 from Rp 70/kg (unchangedsince 1977) to Rp 90/kg. Even after this rise the domestic price is still considerablybelow the border price and is expected to remain low in the 1990s.

Family Incomes

6.05 Family income of settlers will be derived mainly from paddy, and partly from produce grown on houselots, small livestock, and off-farm activities. In calculatingincomes, settlers are representedby two groups reflecting their time of arrival (para. 5.04): group A settlers arriving in the spring of each year (March-June),and group B settlers arriving in other months.

6.06 Detailed year-by-yearphysical inputs and output tables (Annex 2, Tables 3 and 4) have been prepared for group A and group B in accordance with the cropping pattern and agriculturaldevelopment described in Chapter 5. Income from small livestock is expected to be about $24 per family per year (para. 5.11). Off-farm incomes (mainly from logging, fishing and construction activities) are expected to be about $20 per year in the fifth year after arrival and up to $100 from the ninth year. Expenses for hired labor are expected to be minimal since there is sufficient family labor available to - 42 - meet farming requirementseven during peak family seasons (Annex 2, Table 7 and 8 and Fig. 2)./54

6.07 Table 6.1 summarizes average incomes for group A and B settlers detailed in Anniex2, Tables 5 and 6. Settler incomes during the initial 18 month period reflect the subsistenceprovided by MOT /55 and off-farm income from land clearing in the project area. Annual incomes of group A families rise sharply after project year 5, or the third year after arrival and stabilizeat $1,575 per family (or about $315 per capita) in project year 17./56 Incomes of families of group B are low during their first year (project year 3) since they arrive in the rainy season, too late to grow a crop that year. In subsequentyears incomes improve gradually, and with some savings from year 4, settlers will not be exposed to undue financial stress during years 5 and 6. From year 7 and on incomes rise sharply until they stabilize in year 17.

Project Charges

6.08 IPEDA and Other Contributions. Farmers in Indonesia pay a national land tax (IPEDA) assessed as a percentage of crop production. Transmigrants, however, pay IPEDA only when land is fully developed and the project is trans- ferred to the jurisdictionof provincialgovernment, not earlier than five years after settlement. IPEDA is collected by village heads and turned over to the local and provincial administrationfor financing local development. At full development,IPEDA is expected to reach an estimated Rp 10,000/ha ($10/ha) or Rp 22,500 ($22.50) per settler farm. In addition, a settler family will contribute about 10 man-days, the equivalent of Rp 12,000 ($12) per year to operate and maintain collector, tertiary and hamlet drains (para. 4.11).

/54 Labor surplus is expected to develop in the dry seasons from year 7 on, when paddy fields are fully developed, but dry season crops are not grown.

/55 Valued at $336 per family per year.

/56 Incomes during project year 5 are lower than those during preceding years as subsidies are terminated,on-farm incomes are still low, yet farm labor requirementsare high. The situation is not critical as settlers will be self-sufficientin food and should have savings from disposable incomes during preceding years. An income of $315 per capita at full developmentis satisfactorycompared to a projected per capita income of the lower 40% of the rural population of about $107. Incomes will continue to increase as GOI implements additional investmentsaimed at upgrading swamp development (para. 1.08). - 43 -

Table 6.1: AVERAGESETTLER FAMILYINCOMES (in constant end-1983 $)

Year Project Per Per Accumula- develop- family capita tive Fiscal ment surplus /b

1986/87 3 538 (321) /a 107 40 1987/88 4 440 (226) /a 88 61 1988/89 5 258 52 46 1989/90 6 324 65 44 1990/91 7 543 109 86 2000/01 17-37 1,575 315 334

/a Family incomes include prorated subsistenceallowances shown in parentheses.

/b Above US$67 per year which is the estimated average per capita income at place of origin (para. 7.05).

6.09 Cost and Rent Recovery. The cost recovery index, estimated at 7%, is the ratio of the present value of incrementaldirect governmentrevenue (IPEDA and other contributions)to the present value of incrementalfinancial costs of the project in constant (1983) terms. Financialcosts in this calcu- lation include infrastructure,land development,settlement and support, administration,and physical contingencies./57 Costs of nonproject-specific items, such as technical assistance,and studies, are excluded. The rent recovery index, which is the ratio of the total present value of incremental direct governmentrevenues to the total present value of net financialproject benefits (rent), is estimated at 8% (Table 6.2). These rates are in line with those in similar recent projects in Indonesia (FSRP and TransmigrationII). GOI does not contemplaterecovery of the capital cost of basic drainage infrastructureand land clearing in transmigrationprojects, given relatively low projected incomes, personal hardships and risks endured by settlers.

/57 Costs are in constant (1983) currency and no price increases are included. - 44 -

Table 6.2: RENT AND COST RECOVERY /a

.~~~~

Gross farm income /b 10,168 Project rent /b 2,980 Total direct recovery /b 230 Total project cost /b 3,253 Rent recovery index (%) 8 Cost recovery index (X) 7

/a For details see Annex 2, Table 11. 7Wb Present value per farm.

VII. BENEFITS,JUSTIFICATION AND RISKS

Project Benefits and Beneficiaries

7.01 The proposed project will increase food crop production;enhance employment and income opportunities;contribute to regional developmentand reduce foreign exchange expendituresfor rice imports. At full development, about 58,000 tons of paddy and about 5,000 tons of corn will be produced annually which will save GOI foreign exchange of about US$14 million each year in reduced rice imports. About 11,500 families will benefit directly, while about 1,500 families will benefit indirectly through associated services such as transportation,marketing and processing. Civil works will generate some 10 million man-days of constructionlabor, and the project will create about 5.8 million man-days of farm labor each year equivalent to about 18,000 additional full time jobs. All project beneficiariesare either rural or urban poor who are underemployedor engaged in marginally productive activities in their areas of origin in Java or Bali. Their transmigrationto South Sumatra will contribute to reducing pressure on land in overpopulated areas of origin.

7.02 The proposed project will continue and expand Bank assistance to GOI's swamp reclamationprogram started by the FSRP (Loan 1958-IND). It will address the quality of the program; demonstratecost effective implementation procedures,supervision and implementationmanagement, train executing agen- cies in project preparationand implementationand assist agricultural research and development. These considerations,though not quantifiable are important justificationsfor the project.

Major Assumptionsused in Economic Analysis

7.03 Direct Benefits. Direct benefits are mainly derived from incre- mental production of rice, corn, coconuts, and bananas. Benefits are valued in economic prices (in end 1983 constant dollars) net of incremental produc- tion costs. Settler incomes from off-farm activities such as fishing and - 45 -

logging are considered because they are directly attributableto the settlers transmigrationto South Sumatra which provided opportunitiesabsent in the areas of origin. No deductions have been made for foregone land production 'without project' as unreclaimedswamp lands in the project area have negligible economic value (para. 2.08). A detailed year-by-yearanalysis of productionand economic benefits is shown in Annex 2, Table 10. About 75% of project benefits are attributableto paddy production;15% to corn and houselot produce; and about 10% to livestock and off-farm activities.

7.04 Economic Cost of Labor. There are two sources of labor supply - settler families and a small number of local residents. The economic cost of settler labor is the opportunitycost of removing their labor from points of origin. Since there are no direct estimatesof such opportunity cost or marginal returns to labor two approacheshave been used: (a) from estimates of total family expenditures;and (b) from wage rates in Java or Bali.

7.05 Estimated family expendituresof potential transmigrantsaverage those of the bottom 40% of Javanese households./58 However, these figures may overstate marginal returns to labor and have been reduced by 15%. The implicit economic cost of family labor is thus about $350 p.a. in the early 1990s. This is in line with an accountingratio of 50% for conversionof peak season wages in rice cultivation to annual average marginal returns to labor./59

7.06 As the labor market in the project area is competitive,the economic cost of daily hired labor for farming and constructionis assumed to be equal to the prevailing market wage of about Rp 1,200 per day in end 1983 prices.

7.07 Foreign Exchange. The exchange rate of US$1.00 = Rp 1,000 is considered to reflect the value to the economy of the foreign exchange used in the project. A standard conversion factor of 1.0 has thereforebeen adopted.

7.08 Economic Life. The project's economic life is assumed to be 35 years, based on the expected life of project works.

7.09 Economic Costs. Total project costs have been adjusted to economic costs by eliminatingdiscrepancies between financial prices and real opportu- nity costs. The following have been excluded:

(a) expected price increases and taxes;

(b) investmentcosts for education,health, cooperative and community services, and basic subsistencepackages, which would have been provided by the governmentor by farmers themselves in the "without project" situation; and

/58 According to the Indonesia Households ExpenditureSurvey 1980, average expenditureof the bottom 40% in rural Java is Rp 3470 per capita per month or about $67 per capita per year.

/59 Working Paper #2, Project Files. - 46 -

(c) costs of institutionalsupport to GOI's swamp reclamation program.

Table 7.1 summarizes total financial and economic costs. Annual O&M costs estimated at about $525,000 ($17.50/ha)have been included throughout the project life.,/60

Table 7.1: FINANCIAL AND ECONOMIC COSTS /a (end-1983 prices) ($ million)

Financial Economic costs costs Ratio Category (A) (B) (B/A)

A. Civil Work & Transmigration Civil works 30.13 25.33 0.84 Transmigration 25.26 13.26 0.52

Subtotal 55.39 38.59 0.70

B. InstitutionalSupport Technical assistance 9.11 1.03 0.11 Equipment 4.31 0.65 0.15 Training 0.19 - - Drilling & testing 0.14 - _ Test farms 0.77 - -

Subtotal 14.52 1.68 0.12

C. Engineering& Adm. 5.83 3.94 0.68

Total Baseline Costs 75.74 44.21 0.58

Physical contingencies 11.87 7.13 0.60 Expected price increases 33.21 - -

Total Project Costs 120.82 51.34 0.42

/a For works required for the developmentof 30,000 ha and settlement of 11,500 families. In end-1983 prices.

/60 A better estimate of O&M costs for other GOI projects which have deteri- orated due to lacking maintenancewill be determined during the course of this project. - 47 -

Economic Rate of Return (ERR)

7.10 With these assumptions,the economic rate of return of the 30,000 ha swamp reclamationand developmentscheme is about 12.5%, in line with other transmigrationschemes in the Other Islands. Detailed year by year economic costs and benefits and their present values are summarized in Annex 2, Table 12.

SensitivityAnalysis

7.11 Crossover values /61 for a 10% discount rate were calculated for a number of variables crucial to the success of the project. Table 7.2 summarizes differencesbetween the crossover and appraisal values for a number of critical variables.

Table 7.2: SENSITIVITYANALYSIS

Appraisal Crossover % Key factors value value Change (A) (B)

(a) Total economic investment cost $51 million $70 million +34

(b) Paddy yield at full development 2.5 tons/ha 1.7 tons/ha -33

(c) ProjectedPaddy price (1995) $267/ton $179/ton -33

(d) Present value of benefits (PV) $49.6 million $37.2 million -25

(e) Implementationperiod 8 years 12 years +50

7.12 The project can stand a reasonable degree of cost overruns and reduced benefits and a 34% increase in total investment costs would be required to reduce the ERR to 10%. The project will remain economically viable even if rice yields should decline (as a result of poor soil, water management and poor crop husbandry) to about 1.7 ton/ha. A 33% reduction in benefits from paddy or a 25% reduction in total benefits would render the project marginal. Similarly,an extensionof implementationfor the entire development (includingall on-farm works) from 8 to 12 years due to delays in years 3, 4, and 5 would reduce the ERR to 10%. A 10% decrease in costs or an equal increase in benefits will raise the ERR to about 13.4%.

/61 The crossover value is the value of the variable tested for which the project's net present value calculated at 10% discount rate is zero, or equivalentlythe value beyond which the ERR would be below 10%. 48 -

Risks

7.13 The main risks associated with the 30,000 ha swamp reclamation and development scheme are slow implementation and delayed agricultural develop- ment (para. 7.12). The following steps have been taken to reduce such and other risks: (a) technical assistance will be provided to strengthen the implementing agencies improve coordination and assure timely development; (b) farm plots will consist of a single plot per family to facilitate faster land development and cultivation; (c) pest control will be improved, thereby increasing incentives to land development and crop intensification; (d) environmental risks (particularly increasing soil acidity) have been reduced by excluding nonsuitable soils, by providing paddy-field bunds, by monitoring soil acidity, and by designing small water control structures which can be quickly installed, where needed, to prevent acidification; and (e) risks of sea water intrusion have been reduced by providing control struc- tures. Potential risks of endemic diseases (particularly malaria, typhoid, and cholera) are low as a result of planned health care and drinking water facilities.

VIII. AGREEMENTS AND RECOMMENDATIONS

8.01 During negotiations agreements were reached on the following points:

(a) GOI will allocate adequate funds to properly operate and maintain all infrastructure and public facilities constructed under the project and will ensure timely release of funds (paras. 3.23 and 4.12);

(b) GOI will construct project works and carry out settlement activities in accordance with an Implementation Schedule (Table 8.1) agreed with the Bank (para. 3.26);

(c) ConsuLltantswhose qualifications, experience, terms and conditions of employment are acceptable to the Bank will be engaged by DOS, DGFCA and MOT, not later than at dates given in the Implementation Schedule (Table 8.1) (para. 3.27);

(d) GOI will complete the balance of the development program of 30,000 ha, about 40% of tertiaries, 60% of paddy-field bunds, and clearing of about 33% of farm plots, not financed under the project in a timely and efficient manner, not later than December 1991 as set out in the Implementation Schedule (para. 3.29);

(e) Separate project accounts will be maintained by each executing agency which will be audited annually by independent auditors acceptable to the Bank, and together with copies of Statements of Expenditure (SOE) submitted to the Bank within nine months of the close of each fiscal year. A summary of audited reports will be submitted to the Bank by MOT's coordinator of Bank financed - 49 -

transmigration projects not later than ten months after the end of each fiscal year (para. 3.34);

(f) MOT will appoint a qualified resident project manager and post him by July 1985 (para. 4.03);

(g) MOT in cooperation with DGFCA and the Ministry of Cooperatives will cause depots or kiosks to be established in the second year of the project in the project area and cause them to be stocked with farm supplies, pesticides, fertilizers, tools and equipment spare parts for sale to settlers (para. 4.05);

(h) MOA will extend an intensification program to the project area in accordance with a schedule satisfactory to the Bank (para. 4.05);

(i) DGFCA will establish two plant protection brigades for pest control in coastal swamp areas of South Kalimantan and South Sumatra (para. 4.06);

(j) GOI will continue the coastal swamp agricultural research program beyond the three-year time slice (para. 4.08); and

(k) MOT, through line agencies, will be responsible throughout the project's life to coordinate monitoring and evaluation of the environmental impact (particularly soil and water) of development at the SSRP and at three other sites to be selected, and in the Calik, Lalang, Barito and Kapuas rivers. MOT will (a) prepare and submit to the Bank a benchmark report by December 31, 1986 and annual summarized evaluations beginning by May 1, 1988, (b) shall cause re'levantagencies to take remedial action to protect soil and environment, (c) take steps to provide feedback for planning new developments and improve subsequent M&E (para. 4.14).

Recommendation

8.02 With the above assurances, the project would be suitable for a Bank loan of US$65.0 million with a 20-year maturity including a grace period of five years. The Borrower would be the Republic of Indonesia. Page 1 of 2

Table 8.1: IMPLEMENTATIONSCHEDULE

Executing Bids Bids Bids Contract Work Work agency Activity advertised opened evaluated award starts completed

P3S Main civil works Apr. 1, 84 May 15, 95 Aug. 15, 84 Nov. 1, 84 Apr. 1, 85 June 15, 90 PLP Land clearinghouse lots 1,2 Mar. 15, 85 May 1, 85 Aug. 1, 85 Sept. 1, 85 Oct. 1, 85 Oct. 1, 86 3,4 Oct. 15, 85 Dec. 1, 85 Mar. 15, 86 May 15, 86 Jul. 1, 86 Oct. 1, 88 Land clearing farm plots 1,2 Jan. 1, 86 Feb. 15, 86 Apr. 1, 86 May 1, 86 June 1, 86 May 31, 87 3,4 Jan. 1, 87 Feb. 15, 87 Apr. 1, 87 May 1, 87 June 1, 87 May 31, 88 5 Nov. 15, 87 Jan. 1, 88 Feb. 15, 88 Apr. 15, 88 June 1, 88 Dec. 15, 89 6 Nov. 15, 88 Jan. 1, 89 Feb. 25, 89 Apr. 15, 89 June 1, 89 Dec. 15, 90 7 Nov. 15, 89 Jan. 1, 90 Feb. 15, 90 Apr. 15, 90 June 1, 90 Dec. 15, 91 MOT Housing & Village 1 S June 1, 85 Jul. 15, 85 Aug. 15, 85 Oct. 15, 85 Dec. 1, 85 Mar. 30, 86 2,3 L July 15, 85 Sep. 15, 85 Nov. 15, 85 Apr. 15, 86 May 15, 86 Mar. 30, 87 4 S Mar. 15, 86 May 1, 86 June 30, 86 Aug. 31, 86 Sep. 30, 86 Mar. 30, 87 5 L July 15, 86 Sep. 15, 86 Nov. 15, 86 Apr. 15, 87 May 15, 87 Mar. 30, 88 6,7,8 S Mar. 5, 87 May 1, 87 June 30, 87 Aug. 31, 87 Sep. 30, 87 Mar. 30, 88 9 L July 15, 87 Sep. 15, 87 Nov. 15, 87 Apr. 15, 88 May 15, 88 Mar. 30, 89 10,11,12S Mar. 15, 88 May 1, 88 June 30, 88 Aug. 31, 88 Sep. 30, 88 Mar. 30, 89

Settlement Mar. 15, 86 June 15, 89 Settlementsupport Mar. 15, 86 Nov. 15, 90 P3S Tertiaries 1, 2 Dec. 15, 84 Mar. 1, 85 May 15, 85 Nov. 15, 85 Jan. 15, 86 Jan. 14, 87 3, 4 Dec. 15, 86 Mar. 1, 87 May 15, 87 Nov. 15, 87 Jan. 15, 87 Jan. 14, 90 5, 6 Dec. 15,m 88 Mar. 1, 89 May 15, 89 Nov. 15, 89 Jan. 15, 90 Nov. 15, 91

DGFCA Paddy field bunds Sep. 15, 86 Dec. 15, 91

Legend: S - Small contract L - Large Contract Page 2 of 2

Table 8.1: Cont'd

Executing Institutional support agency Activity Proposals invited Consultants engaged Work starts Work completed

DOS 1. Master plan June 15, 84 Sep. 15, 84 Dec. 15, 84 Mar. 31, 86 2. Upgrading studies June 15, 84 Sep. 15, 84 Dec. 15, 84 Aug. 31, 86 3. Implementation Management and O&M Nov. 15, 84 Jan. 15, 85 Apr. 1, 85 Mar. 31, 90 4. Drinking water Investigation Nov. 15, 85 Jan. 1, 86 Apr. 1, 86 Sep. 30, 87 5. Monitoring & evaluation Jul. 1, 85 Dec. 1, 85 Feb. 1, 86 Mar. 30, 90

PLP 6. Land clearing May 15, 85 Aug. 15, 85 Oct. 1, 85 Sep. 30, 88

MOT 7. Final land preparation Nov. 15, 86 Jan. 15, 87 Apr. 1, 87 Mar. 30, 90 8. Monitoring & evaluation Jan. 1, 85 Apr. 15, 85 June 1, 85 Mar. 30, 90

AARD Agricultural Research 9. Expatriates June 15, 84 Sep. 15, 84 Dec. 15, 84 Sep. 1, 87 10. Local consultants Jan. 1, 85 May 1, 85 Oct. 1, 85 Sep. 30, 88

DFCA 11. Monitoring & evaluation Jul. 1, 85 Dec. 1, 85 Feb. 1, 86 Mar. 30, 90 INDONESIA SECONDSWAMP RECLAMATION PROJECT SumsarvAccount bs Tiae Six Year Schedule Base Costs + Price Cont. Bas,eCosts ForeignExchange on Base Total Incl. ------Costs Cont. 84/85 85/86 86/87 87/88 88/89 89/90 Total Z Amount (USS'000) (USS'000)

I. INVESTliENT~~~~aCOSTS Ro ………'0)……(H02------'0) A. CIVILWORKS STRIPCLEARING 59P313.1 622,595.5 1,876Y096.81,B76P096.8 738808.7 - 5Y172P910.874.6 3,859,205.7 6P460.6 7,429.7 EARTHIORKS - 1000,964.0 30421P949.33,691,624.4 14989P660.51,398,950.2 11,503,148.551.5 5,923,066.1 15,392.2 17,701.1 STRUCTURESANDBUILDINGS 477p756,3 477,756.3 - - - - 955512,5 65,5 625,714.3 1,019.6 1,172.6 HYDRAULICCONTROL STRUCTURES - 78,633.4 448,100.3 632,102,6 632,102.6 632,102.6 2,423,041.6 54*9 1,330,887,0 3,389.0 3,897.4 OTLETSTRUCTURES - - - 84,927,2 84,927.2 84,927.2 254,781,7 35.3 89,910.0 379.4 436.3 BRIDGES - - 22,311.6 119,893.4 173,035.7 173,035.7 4889276.342.9 209,595.9 721.2 829.4 ON- FARMWORKS - - 88793.5 286,418.9 375t212,4 375,212.4 1,125,637.1 11,7 132,192*0 1,713.8 1,970.9 LANDCLEARING - 89,580.1 750,444.9 1,178,063.3 1,243,980,8 980,310.9 4,242t380.0 29.8 1,263,964.3 6,118.8 7,525.7 JETTIES - - 309,407.6 309f407,6 309,407.6 928,222.8 0,0 0,0 1,442,6 1,659.0 Sub-TotalCIVIL IJORKS 537,069.32,269,529,4 6,607,696.4 8,178,534.3 59547Y135.43,953,946.6 27,0930911.449.6 13,434,535.2 36,637.3 42,622.0 B. TRANSMIGRATION

BUILDINGS - 115,278,0265710761.2 2,571,761.2 2t325278.6 - 7584,079.0 18,4 19392Y321o4 10,518.5 12,096.2 DRINKINGMATER - - 307,604.9 386,902.1 360,774.0 85,686.7 1,140,967.6 18.4 209,464.3 1,619.4 1,862.4 PUBLICFACILITIES 1,I637,040.5 1:63740: 1,6j7,04?.:5J 12401: 40.7 1:j,679,00 L,/01 MOBILIZATIONANDTRANSPORT - 1y111P316 63001 471 1 8662,1 18 4 1,20214 8 19'2; s SUPPLIES - - 979611.8 789,109.2 789,109.2 789,109.2 2,464.939.5 29.8 735,363.8 3,673.8 4,224,9 TOOLS - - 277Y829.2 372,878.7 349r683.3 30,617.9 1,P031P009.140.7 419,792.0 1,417.7 1,630.3 Sub-TotalTRANSMIGRATION - il,5278.0 6,003Y164.27F249,206.6 6,860,206.6 2p664,926.0 22,892,781.324.6 5,638,084.3 32,441.8 37P308.0 C. TECHNICALASSISTANCE EXPATRIATECONSULTANTS 937,604.42Y081,786.0 711Y056.0 606,555.2 5369915*8 467t234*7 5,341,152.0 87,8 4Y692,400.0 6,274.8 79216.0 LOCALPROFESSIONALS 417,940.0 812,722,3 571r782.5 295,544.6 217f874.4 217,874.4 2,533,738.2 43.6 1,104,953.2 3,129.4 3,598.9 LOCALSUPPORT STAFF 107,494.4 395,217.5 201,553.5 355,962.5 88w575.6 88,575.6 1,237,379.2 41.2 509,200.0 1,565.9 1,800.8 Sub-TotalTECHNICAL ASSISTANCE 1,463,038.83,289,725,8 1,484,392.0 1,258,062.2 B43F365.8 773P684.7 9y112,269,469.2 69306,153.2 10,970.2 12,615.7 D. TRAINING - 37,840,0 37,840.0 37,840.0 37,840.0 37,840.0 189,200.0 79.3 150,000.0 246.3 283.2 E. EQUIPMENT 101187.0 1,001,187.0 1,472,187.0 805,587.0 15,587.0 15,587,0 4,311,321.9 99.2 4,275,041.4 4,853.4 5,581,4 F. DRILLINGAND TESTING - - 71t423.0 71.423,0 - - 142,846.079.3 113,250.0 177,1 203.7 S. TESTFARMS AND FACILITIES 254Y416.8 254,416,8 254,416.8 - - - 763,250.4 29.8 227,700.0 876,1 1.007.5 H. ENGINEERINGANDADMINISTRATION 183,027.8 396,843,5 1,328,736.6 1,554,582.1 1,203,250.6 623,358.4 59289,799.0 0#0 0.0 7,514.4 8,641.6 ------Total INVESTMENTCOSTS 3,438,739.7 7.364820,4 17,259,856.019,155,235.1 14,507,385.4 8,069,342.7 69,795,379.4 43.2 30144,764.1 93,716.5 1089263.0 lotal BASELINECOSTS 3,438,739.7 7.364,820.4 17,259,856.0 19.155.235.1 14P507,385.4 8,069,342.7 69,795,379.4 43.2 30,144,764.1 93,716.5 108,263.0 Physical Contingencies 515.811.0 1.104,723.1 2,594,049.0 2.929,061.6 2P287#660.4 1,357,448.0 10,788,753,042.8 4P6164889,6 - Price Contingencies 1070759#4 858,433,7 4,589,476,7 7,877.060.4 8,406,090.2 5,840,065.6 27,678,885.9 27.3 7,559,899.6 - - Total PROJECTCOSTS 4,062.310.09,327,977.2 24,443,381.7 29i.61,357.1 25,201,136.0 15,266P856.4 108P263,018.3 39.1 42,321,553.4 93,716.5 1089263.0 Taxes 20,163.7 68,253.6 285,748.2 366,904.5 307,906.2 177,203.1 1,226.179.3 0.0 0.0 - 1.226.2 m x ForeigrExchange 2,905.299.3 6,243,328.0 10,392,064.7 11,275,365.9 7,144,034.7 4.361.460.8 42f321,553.4 0.0 0.0 - 42,321.6

April 25't 1984 11:14 INDONESIA SECONDSCAMP RECLAMATION PROJECT SumaryAccount bo Time Eight Year Schedule BaseCosts + B.tseCosts ForeignExchange Price Cont. on Total Incl. ------______------____------____------Itcntc r 84/95 S8/86 86/87 87/8a 88/89 89/90 90/91 91/92 Total X Amount 001 (US,o 0bo) =------======------I. INVESTENTCOSTS ……----- (RP 000)…(RP' ) A. CIVILWJRXS ED PriNG 13983. 5393502,49. 599,313.17 1876,09J.8 738,08. - -,12,910.8 74.6 3,859,205.76,0. 7427 1 59610 42 8 3 8699362 114 198950.23896605 539350.2 5393502 15 1,849. 50.1 6303 729 1 17,2977 19 892.4 STRUCTURESANDBUILDINGS 477,756.3 477,756.3 ------955.512.5 65.5 625.714.3 1,019.6 1,172.6 HYDRALILICCONTROL STRUCTURES - 78P633,4 4486100.3 632.102.6 632.102.6 632,102.6 - - 2,423.041.654.9 1,330.887.0 3,389.0 3,897.4 T T 1ibSS RUCURES -22311.6 l 9 179035 7 3 ON- FARIIVRKS - - 889793.5 286,418.9 375,212.4 375,212.4 355.173.8 3559173.B 1.835,984.712.0 220.320.0 3,004.6 3,455.3 LANDCLEARING - 89,580.1 750,444.9 1,178,063.3 1.243.980.8 980,310.9 625,370.8 625.370.8 5.493,121.6 29.8 1,636,607.1 8,343.4 10,417.6 JETTIES - - - 309,407.6 309,407.6 309,407.6 - - 928,222.8 0.0 0.0 1,442.6 1,659.0 Sub-TotalCIVIL VORKS 537,069.32,269,529.4 6,607,696.4B,178,534.3 5,547,135.4 3,953,946,61,5190894.8 1.519.894.8 30,133,701.047.4 149275,969.0 42,058.1 49,189.6 B. TRANS1IGRATION BUIL-DIN-G-S - 115,278.02,571,761.2 2571,761,2 2,325,278.6 - - - 7,584,079.0 18.4 1,392,321.4 10,518.5 12Y096,2 DRINKINGWATER - - 307,604.93867902,1 360,774.0 85,686.7 - - 1,140,967.618.4 209,464.3 1,619.4 1l862.4 PUBLICFACILITIES - - 1,637,040.5 1,637,040.51,637040.5 1,637,040.5 - - 6,548,162.1 18.4 1,202,142.9 9,542.2 1O,973.5 OBILIZATIONAND TRANSPORT - - 1,111,316.7 1,491,514.8 1,398,320.9 122,471.6 - - 4,123,624.040.7 1,679,000.0 5,670.1 6,520.7 ULIES - - 97,128.6 789,109.2 789,109.2 789,109.21,183,905.4 1,183,905.4 4,832,267.1 29.8 1,441,607.1 7,887.5 9,070.7 TOOLS - - 277,829.2 372,878.7 349,683.3 30,617.9 - - 1,031,009.140.7 419,792.0 1,417,7 1,630.3 Sub-TotalTRANSIGRATION - 115,278.06,002,681.0 7,249,206.6 6,860,206.6 2,664,926.0IY183P905.4 1,183,905.4 25.260,109.025.1 6,344,327.7 36,655.5 42,153.8 u. C. TECHNICALASSISTANCE

EXPATRIATECONSULTANTS 937,604.42,081,786.0 711,056.0 606,555.2 536,915.8 467.234.7 - - 5,341,152.0 87.8 4,692,000.0 6,274.8 7,216.0 to°StSTiI~ tF 4 lg: 74: 371j2 53 5 g 22 2533,73378.44132 1 jv8,20v,v l 16, aB8 L 49 4 213~~~~~~~~~~~~~~~.6 -123,7.24, ------Sub-TotalTECHNICAL ASSISTANCE 1,463,038.83,289725.8 1,484,392.01,258,062.2 843,365.8 773,684.7 - - 9,112,269.4 69.2 6,306,153.2 10,970.2 12,615.7 D. TRAINING - 37,840.0 37,840.0 37,840.0 37,840.0 37,840.0 - - 189,200.0 79.3 150,000.0 246.3 283.2 E. EUIIPMENT 1,001,187.01,001,187.0 1,472,187.0 805,587.0 15,587.0 15,587.0 - - 4f313,321.9 99.2 4,275,041.4 4,853.4 5,581.4 F. DRILLINGAND TESTING - - 71,423.0 71,423.0 - - - - 142,846.0 79.3 113,250.0 177.1 203.7 G. TESTFARMS AND FACILITIES 254,416.8 254,416.8 254,416.8 - - - - - 763,250.4 29.8 227,700.0 876.1 1,007.5 H. ENGINEERINGANDADMINISTRATION 183,027.8 396,843.5 1,328,688.3 1,554,582.11,203,250.6 623,358.4 270,380.0 270v380.0 5S830,510.8 0.0 0.0 8,511.8 9,788.6 TotalINVESTMENT COSTS 3,438739.77364,20.4 17,25924.5 19r155r235.I 14,507385.4 8,069,342.7 2,974,180.3 2,974,180.3 75,743,208.4 41.8 31,692,441.3 104_348_4120_823.4 Total BASELINECOSTS 3,438,739.77,364,820.4 17,259,324.5 19,155,235.1 14,507,385.4 8,069.342.7 2,974,180.3 2y974,180.3 75,743,208.441.8 31,692,441.3 104,348.4 120,823.4 PhvsicalContingreNies 515,811.01,104,723.1 2593,969.2 2,929,061.62,287,660.4 1,357,448.0 539,932.7 539,932.7 11,868,538.641.3 4,904,937.6 - Price Continmencies 107,759.4 858,433.7 4,589,319.97.877,060.4 8,406,090.2 5,840,065.62,583.519.5 2,949,377.5 33.211,626.126.2 8,712,324.6

Total PROJECTCOSTS 4,062,310.09,327,977.2 24,442,613.6 29,961,357.1 25,201,136.0 15,266,856.4 6,097,632.5 6,463,490.4 120,823,373.137.5 45,309,703.5 104,348.4 120,823.4 a i Taxes 20,163.7 68,253.6 285,748.2 366,904.5 307,906.2 1779203.1 63,763.1 67P588.9 1,357,531.3 0.0 0.0 - 1.357.5 ForeignExchange 2905S299.36,243,328.0 10,391,872.9 11,275,365.9 7,144,034.7 4,361,460.81,450651.4 1,537,690.5 45,3090703.5 0.0 0.0 - 45,309.7

April 25,1984 12:11 - 54 - INDONIESIA SECONDSWAMP RECLAMATION PROJECT nnex 1 ProjectComponent bv Time Table 2 (RPMillion;) Base Costs Total 84/85 85186 86/87 87/88 88/89 89/90 RP (USS'000) A. RECLAMATIONANDSETTLEMENT BASECAMP 856.1 796.8 - - - - 1,652.8 1,652.8 FLOODDIKES - 136.5 136.5 136.5 136.5 - 546.1 546.1 PRIMARYDRAINS - 1,129.1 2,268.7 26599.4 394.4 394.4 6,786.1 6,786.1 SECONDARIESY COLLECTORS - 436,6 963,6 z1170.9 455,0 455.0 3,481.0 3,481.0 TERTIARIES - 819.71102.4 19237.3 552.4 3,711.8 3,711.8 HAMLETDRAINS - - 508.1 633.0 633.0 124.8 1,898.9 1,898.9 HOUSELOTS - 89.6 716.6 806.2 500.3 - 2,112.7 2,112.7 FIELDPLOTS - - 1226 658.3 1118.9 lr355.5 3,255.3 3,255.3 HAMLETS - 115.3 2,879.4 20958.7 2,686.1 85.7 8,725.0 8S725.0 VILLAGES - - 1,637.0 1,637.0 1,637.0 1,637.0 6,548.2 6,548.2 SETTLEMENT - 1,486.8 2,653.5 2,537.1 942,2 7,619.6 7,619.6 Sub-TotalRECLAMATION AND SETTLEMENT 856.12,703.8 11,539,114,355.9 11,335.5 5,547.1 46,337.5 4h,337.5 B. SUPPORTWORKS

WATERSUPPLY - - 111.4 111.4 - 22,.8 222.8 UPGRADING 203.5 619.0 1,275.3 1,325.7 1,071.8 1,071.8 5,567.0 5,567.0 PLANTPROTECTION 15.6 15.6 15.6 15,6 15.6 15.6 93.5 93.5 AG RESEARCHFACILITIES 921.0 921.0 921.0 - - - 2,763.1 2,763.1 Sub-TotalSUPPORT WORKS 1,140.11,555.6 2,323.3 1,452.7 1,087.4 1,087.4 8,646.4 8,646.4 C. CONSULTANTS.SUPPORT TO DOS IMPLEMENTATION - 355.3 355.3 355.3 355.3 355.3 1,776.7 1,776.7 MASTERPLANS 441.1 1,323.4 - - - - 1,764.6 1,764.6 DRINKINGWATER INVESTIGATIONS - - 185.2 91.2 - - 276.4 276.4 HYDRAULIC.WATER MANAGEMENT MONITORING - 24.5 146.8 146.8 146.8 146.8 611.8 611.8 Sub-TotalCONSULTANTS Y SUPPORT TO DOS 441.11,703.2 687.3 593.4 502.2 502.2 4,429.5 4,429.5 D. CONSULTANTSTO PLP LANDCLEARING - 69.7 139.3 139.3 69.7 - 418.0 418.0 Sub-TotalCONSULTANTS TO PLP - 69.7 139.3 139.3 69.7 - 418.0 418.0 E. CONSULTANTSTO MOT LANDPREPARATION - - - 78.3 78.3 78.3 235.0 235.0 MONITORINGANDEVALUATION - 56.7 56.7 56.7 56.7 56.7 283.3 283.3 Sub-TotalCONSULTANTS TO MDT - 56.7 56.7 135.0 135.0 135.0 518.2 518.2 F. CONSULTANTSTO AARD AGRICULTURALRESEARCH AND DEVELOPMENT 818.4 818.4 261.1 - - - 1,898.0 1,898.0 Sub-TotalCONSULTANTS TO AARD 818.4 818.4 261.1 - - - 1,898.0 1,898.0 G. CONSULTANTSTO DGFCA CROPPRODUCTION MONITORING - 22.8 136.5 136.5 136.5 136.5 568.8 568.8

Sub-TotalCONSULTANTS TO DGFCA - 22.8 136.5 136.5 136.5 136.5 568.8 568.8 H. OPERATIONAND MAINTENANCE

MAINTENANCEEQUIPMtENT - - 750.0 750.0 - - 1P500.0 1,500.Q

Sub-TotalOPERATION AND MAINTENANCE - 7/5. 750.0 - - 1,500.0 1,500.0 It TRAINING - 37,8 3,8 37.8 37.8 37.8 189.2 189.2 J. ENGINEERINGANDI ADMINISTRATION 183.0 396.8 10328.7 1,554.6 1,203.3 623.4 5,289.8 '1289.8 Total BASELINECOSTS 39438.77,364.8 17P259.9 19Y155.2 14,507.4 8,069.3 690795.4 69,795.4 Physical Contirnsericies 515.81,104.7 2,594.0 2,929.1 2.287.7 1t357.4 10,788.8 10.788.8 Price Contingencies 107.8 858.4 4,589.5 7.877.1 8,406.1 5,840.1 27y678.9 27,678.9 TotalPROJECT COSTS 4,062.39Y328,0 24,443.4 29961.4 25,201.1 15,266.9 108,263.0 108t263.0 Taxes 20.2 68.3 285.7 366.9 307.9 177.2 1,226.2 1226.2 ForeignE.:chante 219053 6,243.3 10Y392.111,275.4 7,144.0 4,361,5 42,321.6 42y321.6

April 27,1984 11:28 - 55 ANNEX 1 Table 3

INDONESIA

SECOND SWAMP RECLAMATION PROJECT

Estimated Schedule of Disbursement (US$ million)

Recent Indonesian IBRD Cumulative transmigration fiscal year disbursement disbursement pro- & semester ($ million) Percent file (percent)

FY 85 Second 2.0 3 5

FY86 First 5.0 7 Second 8.0 12 13

FY87 First 15.0 23 36 Second 23.0 36 36

FY88 First 30.0 46 Second 38.0 59 60

FY89 First 43.0 67 Second 50.0 77 76

FY90 First 53.0 82 Second 57.0 88 91

FY91 First 62.0 96 Second 65.0 100 99 - 56 - ANNEX 1 Table 4

INDONESIA

SECOND SWAMP RECLAMATION PROJECT

Proposed Allocation of Loan Proceeds (US$ million)

Base cost and expected Disbursement price increases Loan Category percentage

Reclamation and Settlement Major civil works 15.35 15.40 (la) 100 Tertiaries, hamlet drains 8.15 4.90 (lb) 60 Paddy field bunds 1.86 1.20 (lb) 60 Land clearing 6.51 4.20 (lb) 60 Houses and villages 22.64 13.00 (2) 60 Mobilization and transport 11.23 0 - 0

Support Works Well drilling and testing 0.18 0.19 (5) 100 Upgrading 6.07 4.00 (lb) 60 Test farms and facilities 0.86 0.50 (lb) 60

Equipment Base camp, water supply, plant protection, agricultural research, operation and maintenance 4.98 5.34 (3) 100

Consultants Services 11.54 11.85 (4) 100

Training 0.25 0.23 (6) 100

Engineering and Administration 7.85 0 - 0

Physical Contingenc:ies 10.79 - - Unallocated - 4.03 (8)

Front-end fee 0.16 0.16 (7) 100

Total 108.42 65.00

INDONESIA- 57 - SECOND069M49 RECLANATIUN PROJECT TbaleIII, CIVIL WORDS DetailedCost Table lEO'332), PART I

0,o, ~~~~~~~~~~~~~~~~~~~~~~~~BaseCosts------siD 070 3-50370 S7/DR05/30G VIAL, Toa a L ost D4,DS1 Z.I 860D7 tTO esiR9 84/90 Total 34/85 OSORt6

I,1INVESTSNT44COSTS A. INFRASTRUCTURE I. BADECAMP

STRIPCLEARIND HA 25 .'522 59,313.! 9331 60,966.0 CONSTRUCTION 477763 4,563--- - 955.512.5505,064.1 6D6,697.2 EODOPMENT ~~ ~~~~~~S3.5 LA - -- - S,30C 319 002.3 319.3,0 -- .8 , 357202.7 392,025.1 Suab-Iot, BA31 CAMP D56,0s9.3 796,706.3 - ,652.R25.6I.8,R. ?90,722.3 2. FL000 TIRES

STROPCLEARING HA 5 7 25 2 O 7 S.5055 - 53,91S.4 55,950.9 55,951.4 53,OTI,4 215,8D5.7 67,892.4 EART0W00KS T0,4.N - 80.1 03105F.1 031 '9.47-32,562.3 DT.563.2 32~,563.3 62,560.3 3302539.1 103,897.5 Sob-ToRaDFLOOD DIKED - 036514.7 136.514,7 130,514714.7 4.7- 46,058.R 171,789.0 3. PR04ARYDRAINS

STROPCLEARING HOA 164 320 328 3,9. T,A. 778,18T.4 -- 1,945,46B,4 - 489.634.6 EARTARMRRTCU.N. - 742 1,490 1,490 T,.5 993.242 750,965.61.479,931,2 1,479.931.2 -3,699.828.1 - 31,1701. BRIDES03 - 1.4 9.3 11.. .34.59- 11,62B.4 51,385.3 05.177,5 85.227,5 212,568.8-- JETTIES EA - - 20.30.Q U' 204- -- 59,407.0 309,407,6509,403.6 926.25223-

Oat-OctalPRIMARY BRAINS1.20D5. '2623,74-.1 2,599,411.6394,435.1 394,455.1 6.786.088.2 -1,420,805,8 4. 5EC08D6R'AND COLLECTDOR DRAINS

STROPCLE3RIND, HA - 3.2 166.4 106.4 '1580.57.1 - 179,553,4 359,130.7 559,100.7 - - A97,751,8 - 25,045.0 EARTI*RRS TCON. 255.1266.2 260.2 s6A,a 1,540408 - 78,435.1 356,703. 3526,372.5 - - BR92,175.7 224,542.4 8915000 EA - 99.1 144.3 2,440 9443 032. 42.5329 - 1,6R. 35095 35,049.5 35,049.5 016,351,1-- CONTROL1UTU30RES Et, B.9 26.7 475' 43-. 47.5 3, 8,355.219 78,6533.4 2'35,000.5 419,902.6 419,902,6 419,902.61.574,241.6 - 99,655.7 040-Tota14055854EV AND COLLECTOR DRADNS - 436,613.V '763554.41,170,022.0 454,951,9 454,05;1.93.431.000.1 550,540.9 5. TERTIARIES

DTIRPCLEARING HA 317.3 317.5 517.3 352 2,5.57- - 04,0'57.3 034,857.5 684,357.5 - 2.054,571.3 EARTHWONRS 750.9, - 60.5 205-6 274.1 27, 822.4 1,9017.4206 134,83>,. 414.D12.7 559.350,2 539.3502'1.618,050.7 CO47RRO9SRUCTURES EA- -- CROSSING5 EA -2,23T,12.237.122.25.l 0713 .30- -- 15.056.1 15,056.1 l356DS.1 50,168.3

6,6-TotalTERTIARIES - - 829,694,31,102,426.1 1,237,263.6 552,406.5 3,7i1,795.8

EARTH4fRVS TC0.9, - -260.7 268.7 268.7 - 80e- l,900.913 - - 508,147.0 508,147.3 538.147,3 -1I.324,440.9- MOTFALLS EA - 016.5 116.5 116.5 399.6 728.676 - -- 84,927.2 84,927.2 84.027,2 254,781.7-- RORSTINGS EA -- 9.569. 6.0 509,01.7309.5 7.354 - 9927 39,9022,359.952,7 119,350,0--

Oab-TotalNA9ET DRAINS - - 5I8,147.C 652,876,' 632,976.9 124,820.91.896.930.7-- 7. ARI3SELOTS

LAND CLEARING HA 310 2,544 2,862 1,776 - ,0 3.9 9,580.1 716,641,1 864,221.2 500,206.6 - ,1.12,739.1 - 117,785,0

Sub-loCalAOUSELOTO 89,533.1 716,641.1 916,221.2 500,296,0 - 2.112,739.1 - 117,785.5 3. POOLSPLOST

LANDCLEARING 00 - 120 1,521 2,640 3,480 7509 331.6" - - 35803.8 371,842.2 745,684.2 931,315.92,129,641.0-- P9DDY3U400 1TC3.9, - - 47.6 142.0 193.4 290.4 571.2 l,V05.409 8803793.5 266,380.4 555,173.8355,175.8 1,565,521.5, FIELDSOTLS'S EA - 6 4 2 9 ,170,42'3487 44 - 20,058.5 20,08585 2,03,685 65,t,156-- 540-TotalFIELD PLOTS - - 122,597.3 658,261.012,118,896.52.355.523.3 5,255.278.0- 9.640ET5 HOUSES6 174.A8,RT9.63,899.6,3,525.0- 31,533 59?405 - 215,25- 2,571,761.225,612,2325.278.6 -72,584079,0 153,235.4 DR1NKINGWATER EO - -5.IC.4533'9.65,636.3 A63.6 11,500 99,2155 - 307,634.0 5363902.1 360,774.0 85.686.71,140,967.6 - SuobTotal HAMLERS - 1:5,278.0 2.A79,366-2 2,956,663.5 2,636.052.6 85,6A6.7 8.725,046.6 - 153,235.4 II. VILLAGES

BUI1LDINGS E6A- 7. . 7.51 121,7.7 i,,37.341.5, 6 1,637.340.5 I.637.140.D 1.637,300.5 6.543,162.1 --

Out-Total 641LLA5 - - 1, 633,041.5 1,637,540.5 1,637.545,5 l,657,V46.5 b.593,162.1 11. SETTLEMENT

R081L1ZATIONAND TRO 990 - ->29-24,159.65350?.0 341.0 11¼53C ISEa. 6 !.1131.,401,514.0 17398,520.9 132,471.6 4,125,624,0- SUPPLIESAND 30PP5RT5 'AM - -273,070,7,I,7. ,0. 423.197 - - 97.62118 789,109.2 780,100,2 780,109.2 2,464,039.5- TUOOSAND EQIUIPMT F99 3102,l0o,3, 3,514 501.1 89~644 - 77,020.2 577,378.7 549.685,3 30,617.9 1,031.309.1 -

S.b-Total SETTLEMNRT - -1,436.757.0 2,653,552.7 2537,113,4 94T,193,A 7,619,572.6 - -

Sub-Total INFRASTRUCTURE 056,069,57.,703,807.411,539.060.6 14,3C5,94D.9II,335.542.C 5.547.372.6 46,537,492,7 1.008,182.8 3.412,632.4

1. WATER00P950

GEOPHYSICS, WELLS 065 o :4238.6 71.423.0 71.423.20 142.846.0 - ESUIP9ENT 5 S 10lo 0,33 43,031.0 4000.CD.0 80,000.0 Sub-Total WAlERSUPPLY - - 111,423.0 111,923.0 -- 222,846.0-- 2. 40G9A0IN3WORES 08901085005 LI 73 2.1 >3 2~~ ~ ~~~~~~~~~~~~.31 30,4C- 096.2 350,630.2 855,631.2 59560.03135,438,450.0 8T8UCTON0O LiS3 -73 2. .3 1 840,3CC - - 12,7100.2 212,233.0 212,20D.3 21.2,218.0 843,600.1 S66-Total UPGR6DINGW5000 - ,071.231.0 l2I00T 1,072,802.5 1,071.3D1.0 4,287,280.1 3. PLANTPROTECTION 5RI0A3ES ESOUIORNTAND MATERIALS LS . D.2 0.121 2: 023,20 2,3. 55725,537.2 15,537.0 1,5.3,5?, 15.507,5 95.521.9 18560 9,3. Duo-Total PLANTPPTTET710N 3R16A3ES 058. 15.537.:5, 507.2 15,537,.0 15,587.3 15.587,1 95,521.9 IA,596.E 19,639.2 4. AMOESFACILITIES

TESTFARMS. AND 6D1LD453 S :414.61.0 254.416-0 254,410.0, - - 36,250.4 306,206.5 334,701.1 EQUIPMENT .0 ---- 66s,600,.C 66o,000.0 6o6.650.7 -- 1.999.830.0 1779,88,3 819,1072. Rub-Total AGRESFACILITIES '2.2, 2,1, 2,I. ,763,050.4 1,08A,295.1 1,1553,98.-3 Sat-Total SUPPORTWORES 93.2- 566337119.926.0 2.196-813,9- 1,287,387,.1 l1,087F57.0 7,366,618.3 1.122,691.9 1,173,537.5 Annex I

Page 1

Sreakoos.,of 7otals 2:11.,tort 9ara.ters Totals Inclhdis C~tortoser,cies 20'U)------Totals Ic.cloora Ctingendocies Q(2------Ph, 86167 87186 66/89 89/190 Total 84-'85 85/86 6/87 0788 88/B? 91/90 Total Fo:. 52-2. 7L.-s.3~t;ps I Tz;teo Total Rate bech. Ta: Rate Aceent

9 6 - - - - 8~~~~~~~~~~~~9,966.069.96a.8 - - 69,966.0 22 ott 8 16.;~.S ~ .9 P16~ 8. 15 -2.7 .0'0 - - - - ~~~~~~~~~~~1,172,561.3565,864.1606,697.2 -" - - ',12561.3855.2 3,410 241A 1,12.61.t 0.5 0.6 0.8 si - - - - ~~~~~~~~~~~764,377.8372,352.7392,025,1 - - 764,377.87499.25,3 - 15.387.: '64-377,8 8.15 8.93 0.02 EQU1P ',006,905.1 0,888.192.8 998,7,223 - - -- 2,016,905.1 25,39: 410,387.9 90,138.1 2,8869805.1

7 73,812.6 30,646.7 86,885.2 - 319,316.8 67,692.4 73,812.9 80."64,7 88,205.2 - 318,356.3 253.o 7:116.: a20 .1 310.356.3 2.,1 0.7 3.82 SC0 112,956,4 123,415,7 134,676.7 - 474,946.3 - 03,897,5 11,5, 2492 14667- 474,946,8 344.373,9 121,C-73,5 9,498,9 474,940.3 8.15 0.7 0,02 88N

186,768,4 204,862.4 222,682.0 - 785,382.6 - 171,789,8 286,268.9 204,90624 222.682.0 785,392.6 569,496.9 202.139,7 15.786.1 785,882.6

88 1,064,653.2 1,163,235.7 - - 2.7'17,523,6 - 489,634.6 1,864,653.2 1,163.23.7 - - ,717,523,6 1.971,286,9 6?1, s2 '54852.1 2,717.523.6 9.15 8.7 8.82 SAC 2,024,722.6 2,212,203.6 - 2168,897.3 - 931,171,1 2,124,722,; 2,212,283.6 - - ,168,097,3 37q'8 131 tOs. l9,j'1,9 ,f 7j 14,896.3 48,214.1 148,362.3 131,530.8 814,803.15 14,696.3 48,214.1 140,362.3 15,3.8 34803. 22,6'3,9 i2,8i 2561 'tA61 - 586,315.9554,295.3 598,488.2 1,651,311,4 - - 506,315.9 554,295.3 598,480.2 1,659,011.4 - 1,625,831.2 33188O.2 1,659,811.4 0.15 8 0.82 JTG 3,104,872.83,929,969,3 694,657.8 749,931.1 9,899,435.8 1,421,885.83,104,072.8 3,929,969.3 694,657.6 749,931.1 9,899,435.8 5.942.818.8 3.258,629,1 193,988.79,899.435.8

491,292.6536,784.3 - - 1,254,022.7 - 225,945.8491,292.6 536,734.3- - 1,254,022.7839,665,9 319,276.3 25,388.51,2540,22.7 lU11 8.7 3.82 860 488211 53,5. 1,246,233.8 - 224,542.4488,241.1 533,458.2-- 1,246,233.8984,015.8 317,293.3 24,924.71,246,233.8 9.12 8.7 8.02 EA8 18719.8 35,007,3 68,132.7 64,917.4 196,777.1 - - 18,719.9 55,087.8 68,132.7 64,917.4 196,777.1 64.188,9128,752.6 3,935.5 196,777.18.15 0.3 0.02 89$ 326,186.3 834,939.3 693,169,4 748,324.1 2,502,475.2 - 9,85,5.7 326,186.3 634,9393 693,169,4 748,324.5 2,502,475.2 1,571,66608 888,759,7 50,849.5 2,502,475.2 8.15 9.6 8.82 08848

1.322.439.8 1,761,181.1 753,302,1 813,241.9 5,199,508.7 - 558,343.9 1,322,439.8 1.760,181.1 753,302.1 813,241.9 5,199,508.7 3,449,436,7 1,646,881.9 103,990.2 5,199,50887

936,966.5 1,023,725.7 1.117,135.1 - 3,877,827.4 - - 936,966.5 1.023.725.7 1,117,135.1 - 2,877,827.4 2,228.666.2 787,684,6 61,556.5 8,077,837.4 8.15 8.7 3.82 SAC 192,986.7 634,821.8 925,348.6 998,969.4 2,752.128.5 -1 92,966.7 634,851.8 925,348.6 998,969.4 2,732.128.5 896,181,7 1,800,984,3 55,042.6 8,S,2.7218.58811 :iS8:8i CM

- 29181 22,874.7 24,694.8 68,479.7 - - - 29101 22,874.7 24,694.8 68.479.7 11,356.6 55,753.5 1,369.6 68,479.7 81 .5 80 6

1,129,932.2 1,679,487.6 2,065.350.5 1.032,664.3 5,898,435-5 - ,129,933.2 1,679,497.6 2,16S3,35.5 1.023.664.3 5,898,435.5 3,136.124.6 2,8.44,342.2 117,968,7 5,898,435.5

740,994,4 813,827.2 898,289.6 - 2,445,111.2 - - 740,994,4 813.822,2 898,289.6 - 2,443,111.2 456,919.0 1,989.289.9 48,982.2 2,445,111.2 8.15 0.15 8.82 881 - 133,286.8 145,706.1 157,299.8 836,292.8 - - - 133,28. 145,9786.1 157,299.8 436,292.8 141,999.4 285.567,5 8,725,9 486,292.8 0.15 8.3 88 8 - 88,986.5 69,918.8 75,473,5 209,290.7 - - - 63.906,5 69918.8 75,473.5 209,290,7 34,788.7 178.396,2 4,185.8 208,398.7 0.15 0.15 8.02 ER8

748,994.4 1,011,028.5 1,105,906.4 232,783.4 3,89,694.7 - - 740,994.4 1,011,8020.11,185,996.4 232,773.4 3,890,694.7 583,637.1 2,445,253.7 61,813.9 3,098,694.7

1,031,897,6 1,273,761.8 864,244.5 - 3.287,639.M 117,785.3 8,031,897.6 1,273.711.8 884,244.5 - 3,287,639.2 900,948,2 2,320,938.2 65,752.8 3,287,639.2 8.15 0.25 0.02 1LK

1,831,897.6 1,273,711.8 864,244.5 - 3,287,639.2 - 117,7853 1,031,897.6 1,273,711. 864,244.5 - 3,287,639.2 988.948,2 2,320,938,2 65,752.8 3,287,639.2

55,023.3 664,088.9 1,452,255,7 2,066,659.7 4,238,819.5 - - 55,823.3 664,C02891,452,255.7 2,064,61,9.7 4,238,019.5 1,156,275.3 2,996.983.8 84,760.4 4,238,019.5 8.3 8.25 8.82 16C 138,327,9 429,633.2 626,817.6 676,693.1 1,8363,471.7 - - 133,327.9429,633. 626,817.6676,693.1 1.863.471.7 207.458,2 1,618,744,1 37,269.41,883,471.7 1,15 8.1 8.82 188 - 32,791.1 35,898.5 38,754.o 107,444,5 -- - 32791.1 35,898.5 38,754.9 107,444,5 - 183,295.6 2,148.9 187,444.5 1,15 8 0.02 OFW

185,351.1 1,126,585.2 2,114,971.8 2,782,187.6 6,288,935.7 - - 185,351.1 1,126,585.2 2,114,971.8 2,782,187.6 6,288,935.7 1,363.733,5 4,721,023.5 124,178.7 6.208,935.7

3,758,215.8 4,118,826.5 4,073.961.6 - 12,096,239.1 - 153,235.4 8,750,215.6 4,118,828.5 4,073,961.8 - 12,896,239,1 2,013,48110 9,840,483,3 241,924,8 12,896,239,1 8,15 3.85 8.02 KGO 448,558,2 619,646.5 832,087.4 862,871.2 1,882,363.2 - - 448,558.2 619,646.5 832,887.4 162,071,2 1,862,363,2 309,721,8 1,515,394.9 37,247.3 1,8623,63.2 0.05 0.15 8.82 DM 4,198,773.8 4,738,472,9 4,706,849,8 182,071.2 13,958,6823 153,235,4 4,198,773.8 4,738,472,9 4,706,049.8 162,071.2 13,958,602,3 2,323,632.0 11,355,798.2 279,172.0 13,958,602.3

2,387,179,2 2,821,G16.5 2,868,146.7 3,896,363,4 11,973,505.8 - -2,387,179,2 2.621,B16.5 2,888,148.7 3,596,383.4 10,973.505.8 1,823,817,4 8.930.178.3 219,478.1 18,973,585.8 8.15 0.15 8.82 998

2,387.178.2 2,821,816.5 2,868,148.7 3.096,383.4 1l,977,505.8 - - 2,887,179.2 2,821,816.5 2,868,148.7 3,896,363.4 19,973,583.8 1,823,857.4 B,930,178,3 219,470.1 18,973.505.8

1.582,197.1 2327,758.6 2,385,181,9 225,528.1 6,528,865.7 - -1,582,197.1 2,327,758.6 3,385,181.9 225,528.1 6.520,685.7 2,4688.126.74,852.539.8 - 6,520,665,7 8,15 0.35 I 418 140.839,2 1.247,312.3 1,384,103.8 1,472,643.9 4,224,898.4 - - 140,639.2 1,247,522.3 1.384,163.0 1,472.843.9 4~224,898,4 1,154.154.2 3,070,744,M 4,324,898.48.15 0.25 8 Ps8 395,5493 501,939.7 596,471.3 56,382.8 1,638.342.3 - - 39S,549,3580,939.7 596.471,3 56,382.0 1,838.342.3 617,098.8 1,013.244.2 - - 1,638,342.3 0.15 0.35 8 T1.8 2,118.385.6 4,157,210.8 4,345,756.2 1,754,554.8 12,375,986. - - 2,118,385.6 4,157,219.8 4,345,756.2 1,754,554.0 12,375,908,4 4,239,879,0 8.186,527.4 - 12.375,906.4 18,405,795.122.502,437.9 19.741.066.8 08,614,706.873,684,870.8 1,008.182.83,412,682.4 16,485,793.1 22,502,437.9 19,741,066.8 10,614,706.8 73,684,871.8 25,883,362.848,575,309.7 0,226.179.3 73,684,871.8

97,381.5 186,344.1 - - 283,705.6 - 7,361.5 186,344.1 -- 203.705,6 157,476,0 46,229,6 - 2038705.6 0.15 8.75 8 181 13.225,5 38,815.8 - - 101,241-3 - - 53,225.5 58,015.8B 111,241,3 181.241,3 -- 111,241.3 0.15 I1 8 EQUIP

150,587.0 164,359.9 - - 314,946,9 - - 158,587.0 164,359.9 - - 314,946,9 268,717,3 48.229,6 - 314,946,9

1,223,824.5 1,341,549,8 1,466,260.2 1.582,929,7 5,614,564.2 - -1223,824.5 8,840,349.8 1,466,268.2 1.582,929. 1,614,564,2 2.124.840.7 3.498,523,M 5.614,584.2 0.15 6.35 8 841 303,982.0 333,294.3 364,359.9 393.351,7 -1,394,907.9 - 303,902.8 333,294.3 304,339.9 393,351.7 1,394.907,9 455.151,6 939.756,3 - 1.394,907.9 0.15 0.3 8 029 1,527.726.61,674,844.0 1,830,620.1 1,976,281.4 7,089,472.1 - - 1.527.726.61,874,844.0 1,830,620.1 1,976,281.4 7,009.472,1 2.579.192,3 4,4308.279.B 7,009,472,1

21,356.1 23,386.4 25,467.3 27.493,7 135,689.4 18,396.819.63 .2 11,358,1 23,336.4 25,467.3 27,493.7 135,689,4 98,758,6 86.930,8 - 135,689.48.15 8.7 8 EQU1P 21.358,1 23,336.4 25,467.3 27,493.7 135,689.4 18B,396.819,639.2 21,356.1 23,336.4 25,467.3 27,493.7 135,689.4 98,758,6 38,928,8 135,689.4

368,S64.1 - - - 1,087,471.4306:286.3 334,701.1 366.564.1 - - - 1.007.471,4282.864,6 724.606.8 - 1,087,471.40.15 0.25 8 T51 887,003.1 - ,484,289.2778,088.8 819,197.2 887,003.1 --- 2.484,289,22,484,289.2 - - 2,484,289,28.15 1 I EQUIP9

1,M253,67.2 - - - 3,491,760.61,884,295.1 1,153,898,3 1,253,587.2 -3 ,491.760,62,767,153,8 724,608.8 - 3.491,760.6 2.953,238.81,862.540.4 1,856,087.4 2.003,775.1 10,951,889.8 1,182,691.9 1.173,S37.5 2,953.236.8 1,862,540.4 1,856.087.4 2,087,775.1 10.951,869,0 5,713,822.8 5,238.047.1- 10.951.869.0 - 38 - 9 SECONDsw4 GUESIAooVCJC TabI1.III, CIVILWORKS DetaiIed CostTable PART ox

pmantit~~~~~~~~~~~~~~ B~~~aseCasts

Uoit 84/B585/86 86/8? 87/88 88/89 89/90 Total (Jnit Cost 84/81 85/86 86/87 87/88 88/89 89/90 Total 86/85 85/B6

1. IWL.E88NTATIONA8EMENT AND GIM

EXPATRIATES mm 2 A,4'b:2~: A~A i ~ ~ '~~ ~44 2Z$ ~ ~ I 5 Q~7 306,201.7 LOCALSUPPORT STAFF NM - 66 66 66 66 66 330 827.2 - 54,505.2 54,595,2 54,595.2 54,295.254,595.2 272,976,0 - iR1 Sub-TotalIMPLEMENTATION MANAGEMENT ANDDON- 355,347.83155347.8 355,347.8 255,347.8 355,347,8 1,776,739,2- 450,610.9 2.OPSRADING

EXPATRIATES mN 9 27 9 - - - 45 11,611.2 104,500.8313,502.4 104,500.8 - - 22,504.0122,635.8 38F9,73.9 ILOCALPROFESSIONALS NA 31.893.6 31.1 12.3 - - 166 21,176 67,630.1203,621.4 67,630.1 26,686.5 -3 65,566,083,832.7 263,822.7 15098SUPPORT STAFF NM 36 117 36 265 - - 90 870.4 31,324.4151,836.8 51,334.4 222,174.9 - 21,608,0 32,458.4151,845,2

Sub-TotalUPGRADIAG 203,465.3618,960,6 202465.3 253,860.9 - ,279,752,0240,919.5 785,74:.7 3.MASTER PLAN 250000 NA

EXPATRIATES mm 23.7 71-295 11.61122275,766,0 927,298.0 - - - 6,100664.326231,9098 LOCALP8OPES88ONALO ~~~mm41 123 - - - 164 2,176 89,216.026 7,648.0 ---- 356,64 0 16,632,6346,779,0 LOCALSUPPORT STAFF mN 87.5262.5 - - - - 350 873,4 76,160.0228,487.0 ---- 304,640,091,327.8 296,030.8 Sub-TotalMASTER PLAN 2008000 HA 441,142.01,323,926,6 0 1,764,568,8521,282,7 1,671,907.6 4.DRINKING WATER INVESTIGATIONS LOCALPROFESSIONALS Nmm - 47.6 23.4 - 71 2,176 - - 03,512,3 5,0. 5,9, LOCALSUPPTORT STAFF Nm - 958 46. -2 145 870.4 91-AI640.540,212.5 -- 121.856,0--

Sub-TotalDRINKING WATER INVESTIGATIONS -- 835,155,898,196,2 - - 276,352,1- 5.NDA2DRND

EXPATRIATES INI 1.5 P.1 9.1 9.1 9.1 38 11,618.2 - 17,649.0105,894.1 105,894.1 205,894.1 105,894.8 441,225.6 - 1,954.0 LOCALPROFESSIONALS Nmm 2.2 13.4 13.4 13.4 1.3.4 56 2,176 - 4,834.2 29,241,4 29,245.4 29,245.429,245.4 131,856.0 - 6,315.3 LOCALSUIPPORT STAFF KM 2.2 18.4 03,4 13.4 13,4 56 870.4 - 1,949.7 11,698,2 11,698.2 11,698,211,698.2 48,742.4 - 2,526.1

Sub-TotalNONITOOINO 24,473,0146,837.8 146,837.8 146,837.8 146,837,8 611,824,0 - 0,795.5 Sub-TotalCONSULTANTS , D0S 6a4,607.32,322,207.4 890,806,7 047,242.6 502,185,o 502,185.6 5,739,235.2 362,202.6 2,939,055.8 D.CONSULTANTS , PLP I.LAND CLEARING

EXPATRIATES mm - 6 12 12 6 - 36 10,611.2 - 69,681.1139,320.5 839,0320.5 69,681.1 - 418,103.2 - 6,6738.2 Sub-Total~ ~L9N0 CLEARING ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ------69--681.1-109--326.5- 139--32--.5 69.681--1------86---78.2- Sub-TotalCOSLTANTS CLE PIPG - 69,681.1 139,326.5139,320.5 69,688.1 - 4,18,003.2 - 86,678.2

E.CONSALTA9ATS , MAT

JOCALPROFESSIONALS mm 36 36 06 108 2,176 --- 78,328.2 78,278.2 70,328.2234,984.5--

Sub-TotalLAND PREPMRATION -- - 78,308.2 718,338.270,328.2 234,984.5 - 2.40410081NG ANDEVALUATION

EXPATRIATES mm 3.2 3.2 3.2 3.2 3.2 16 11,611.2 - 37,150.8 37,155.8 37,155.8 37,155.837,755,8 185,779.2 - 46,219.1 LOCALPROFESSIONALS NMM 6.4 6.4 6.4 6.7 6.4 32 2,176 - 13,926.4 13,926.4 13,926.4 13,926.413,426.4 69,632,0 - 8,043.8 L8CRLSOPPORI STAFF mAm 6.9 6.4 AM4 6.4 6.4 32 070.4 - 5,520.6 '5,570.6 5,570.6 5.570.6 5,570.6 27,852.8 - 7,217.5 Sub-TotalMONITORING ANDEVALUATION - 56,652.8 56,622.8 36,652.8 56,652.856,652.8 283,364.0 - 71,480.4

Sub-TotalCONSULTAMTS , M0T 56,652.8 56,652.8134,981.0 134,881.0 134,981,0 5186,248.5 - 71,480.4 P.CONSULTANTS , SUPPORTS 789680 1.AGIACULTURAL RESEARCA

EXPATRIATES 89m 48 48 - - - - 96 11,601.2557,337.6 557,337.6 - --- 1,184,675.3654,057,7 693,287.0 LOCALPROFESSIONALS AMN 120 120 D2D -3 60 2,176 261,093.9261,593.9 261.093.9- 783,201.73120.64,1 308,283.1

Sub-TotalAGRICUILTURAL RESEARCA 818,431.5818,431.5 261,093.9 --- 1,897,956,9966,131,0 1.031,574.1 Sub-TotalCONSULTANTS , SUPPORTS TOAARS 818,431.5818,431.5 1A,9,,897,956.9 9o6,121.8 1,238,574.1 S.OPERATIOA AND NAINTENANCE-

1.EOIOPAENT LS - .5 U.S - 1 1,500,000 - - 750,000.0756,000.0 -- 1,900,000.0 --

S.t-TotalOPERATION AND AAINTENAA8E -- 750,030,0750,000.0 -- 1,500,006, - A.COSUSLTANTS , D8FCA 1.NONITDRI8G

EXPATRIATES 964A 1.1 6.7 6.7 6.7 6.7 IA 108611.2 - 13,304.5 78,027,3 78,027.3 78,027.3 78,627.3325,113.A6 16,176.7 LOCALPROFESSOINALS AN - 3.2 19.2 19.2 18.2 18.2 80 2,176 - 6,063.2 48,779.2 41.779.3 41,779.2 41,779,2174,080.0 - 9,021.9 LOCALDOPPDRT STAFF NMM 3.2 19.2 18.2 19.2 19.2 80 830.4 2,785.3 16,711.7 16,711.7 16,711.7 16,711,7 69,632.0 - 3,608.8

Sub-Total9040788048 - 2,753.0 836.518,1136,518.1 136,518,1 136,518,1 568,825,6 - 28,807.3

Sal-RotalCONSULTANTS , IGFCA - 32,753.0136,508.1 126,588.1 136,508,; 136,518.1 568,825.6 - 28,807.3 1.TRAINING 1.STAFF TRAINING

STAFF LS 0.2 0.2 8.2 0.2 3.2 1 189,206 33,840.0 37,840,0 33,840.0 37,846.0 32,840,0189,200.0 - 47,476.4

Sub-TotalSTAFF TRAINING - 33,943.0 37.840,0 37,540.5 07,840.0 372;40,5889,200,0 - 42,470.4

Sub-TotalTRAINING - 37,848.0 37,840.0 37,840.6 37,846.5 37,840.3 188,200,8 - 47,470.4 J.ENGINEERING VMSADNINISTRATION I.PTICAL DEVELOPND86T - 85,606.9270,380.7 1,153,906.8 1,435,594.1 1,133,554.2 554,707.3 4,633,749,3 104,354.9 365,663.9 2.SUNPPORT WORSs 46,830.246,836.2 1085,991,359,948.5 54,289.3 54,369.3 36838. 57,886.063,333.1 3.CONSULTANTS 58,590.7 79,632.5 68.839,2 59,047.5 15,327,004,281.8 287,7318.8:60.67750 107,695.5 Sub-TotalE94ONREERING ANDADNINISTRATIDN 183,027.8396,843.5 1,328.736.6 1,554.582.1 1.203,250.6 623,358.4 5,289,799,0 323,000.9 536,691.1 T otalINVESTMENT COSTS 3.3,73.77.364.820.4 17.259.856.0 19.155,235.1 14,507,385,4 8,069,342,7 69,795.379,4 4,062.300.0 9,827,937,2 Total 5,4381,739.72,564,820.4 17,259,856.0 19,155,235.1 14.592,3815.4 8.569,242,7 69.295.379,4 4,582,310.0 9,322,932.2

A66il127,1984 11116 Annex 1 Table Page 2

9,eakdoanof To'.lIa Inol, Cort0 Pa,neteos Totals Ir.cudor.8Cor,taooer.cios Total; 1ocIŽdin bo12o-lc jo; 0------C: 0.4.~ crt.For, G os O oa 86/117 87/86 88/89 89/90 Total 641 5/89 86 1 87 11''8 08 '1 910 S For, 8.2. Taxas: loties I Tases Total Rate taco. lea Rate kewe4

332,243,5362598 395.456,7426,923.8 168234153 - 3188201.733,241,5 362090.5~3954152- 46,923.2 1-823.4:521,57t.124,4 245.380., - 1,823,415.39,15 1.85 0 EXP 9.145,86.18. 95,86,7 1l,727. 435849,2 2224. 9,145,9 16,884. 9507 102,582.8 435.849A296,328.4 119,520.8 435.849.23.15 3.2 0 LIP 84 - 2284.~ 79,15,9 17884. 0l6.7 102,587,9 415,849.296,321,4 3398523,3 - 35849,2 3,5 .2 490,534.6536,359,4 585,510.t 632,098,7 2.691,113.7 - 450~,613.9 499,534,6 236.359,4585,510.1 632,08887 2,695,113.7 1,720,6912 .1 24,422.5 2,695,113,7

141,046,8 - - 6 53.656.5122,615.3 389,973.8 191.346.8 - 53,656.55,75.25, 89,906.2 6518656,50.25 0.85 0 EXP 95,729,6 41,286.6 - - 481,771.083,632.? 263,822.7 05,728,6 !1388.6 -- 481,773.5 210.4l9,3 271.354,3 - 483,773.53.15 0.4 3 LOP 44,353,5352,329,M 566,079,3 37,151,4131,945_2 94.353.5352,729,1 - - 66,879,8244,'94-2 _321,175-6 --- 166-179.1--1.150.4 I LCT

281,129.8393,718,4 1l758,519.9 240.919,9 785,741.7 181,K12.8 393,711,4 - -1,01919,59 1,023,0713.8678,0136,? 1,701,509.q

- - ,352,720,1123,62.2. 1,129,097,M - 1.352,720,2'1.175,103.0 176,837,l 1,352.720,12.15 3.85 0 EX? - - - - ~~~~~~~~~~453.411.5136,132.6346,77P.3 0 453,611,5199,814,3 254,397,3J 4533411.56,2 .4 8 L.1? - - - - ~~~~~~~~~~387,058.691,527.8296,130.9 - 8.98,6 169.890.2217,168.4 - 87.085,68.15 9.4 8 LIT - - - - ~~~~~~~~~~2,193,190-3521,282.71,671.987.9-6 2.1931918.31,544,787.5 948,402.8 2,199,190,3

146,528O.579,971,.7 - 2952,5?- - 149,920.5 79,171.7? 225,992.293,281.2 128,311.1 - 2,9. .15 1,4 8 LIP 115.565.4 62,366,4 - - 127,931.9 - - 719.59, 8231664 - 77,931,8 76,728.8 110,201.80 177,031.91.15 5.4 9 LOT 262,885.9141,438.1 - - 403,524.0 - 262.085,9141,4381 ! 483,524.9174,810.1 229.514.0 481,524.8

142,927,4 1S5,982.3 171,121.1 183,657. 674,642.2 21,954.1 142,27,9 155,182,3 171.,121,0 161,617,4 974.942,2 583.586,8 91.05-,94 674,642,2.1.8 35.85 1 898 41,396,6 45,357,4 49,562.7 51,536.4 196,1'38.9 6.315.3 41.396.6 451357.4 49.562.? 93,506,4 196,138.414,015.9 111,822.5 - 196,138.41.19 0.4 8 LOF 16,558.6 88,143,8 19,825.1 21,482.8 '8,455,4 - ,526.1 10,558.6 18.143.2 198925.1 21,482.6 78.455-4 33,726,4 48,729.10 78,455.48.15 8.4 0 LCI 2001,882,6 21,482.7 239,588.8 258,566.4 949.236.0 - K3,795.5209,882.6 211,482.7 219,508.8 298,566.4 949,216.0 711,629.1 247,o6069 - ?494,236.0

1,234,632.91.290,998,6 825,818.9 890,665,1 7,942,573.1 362,212.9 2,839,055,3 1,234.632.9 1,290,998.6 829.018,9 890,665.1 7.942,573,9 5,214.191.7 2,728,382,2 - ,9?42,573,

1986,0439205.219,4 112,944.1 - 591.885,.2 - 89,678.21898043.5 205,229,4 181,944.1 - 591'88-,2512.361.5 2.95236 5 91,8852 8.150.89 3 £38 188.043,9285,219.4 111,944,1 - 591,885,2 - &lo678.218,0.43.S 705!.294 811.944,1 - 592,885.25-12.362,5 79,523,6 - 591,885.2

188.043,5215.219,4 111,944.1 598,885.2 - 3o.671.2189,043.9 299,219.4 111.844,1 - 991,885.2312,31.5 79-523,9 591,885.2'

- 121.480,9132,744.0 143,306.4 397,531.3 - .4488.921 132,744,0143,306.4 397,531.3178,552.7 226,978.5 - 397,51. 1.15 8.4 I LCf

- 128,439M 132,744.0143,306.4 397,531.3 - - - 121,480.9132.744,0 143.306,4 397,531,3173,552.7 226,978.5 - 397,531.1

53S.15, 54,738.6 59.691.6 64,441.2 275,232.5 - 46,219,1 53,050.0 54.730,6 59.691,6 64.441.2 175,232.5218,193.9 17,238.6 279,232,8.15 0,85 1 888 19,712.7 21,388.8 23.6011q 29,479.2 108,415.7 - 18,843.1 19,712,7 21,598,8 '340-13 25,479,2 108437 46.714.7 61.731, - 108,435.20.19 0.4 0 118 7.851 8,3, .4Ž 10,191.7 43.374,3 - 7,217.5,885, B.639,9 977.50.9, :35.72,18,81. 24,692.- 43.374,38.15 8.4 3 LI'

77,747,7 84,968.9 92,733.4100,112.1 427,242.5 - --71.481,4 7',747,7 08.96889 92.733,4108-112.1 127.042,5383,588.4 823.462.1 - 427,042.5

77,747.7 206,449,8225,477,4 243,418.5 824,573.8 - 70,412.8 77,747,7706.849.1 225.477,4 243,483.9 024,273,9474,133.2 352,440.6 - 824,573.8

- - - - 1.347,341,7654,057,7 693,287.1 - - - 347,344.71.273,164.2 174.2108,5 - 1.347.344.7-3.15 1.85 0 839 369,575.3 - - 1,019,926,5312,864.1 338,27.8 369,575.3 I 01.19,926.,9407172.19572,754.4 - 1.019.926.55,I2 0.4 I LCF

369,575.3 - - 2,367,271.2966.121.8 1.031,574.1 399,575.3 2.397.278,2-.620.339.3 746.934.9 - 2,367,271,2

369,575.3 - 2,367.271.2966,121,1 1,2.18,574.2, 369,571,3 -- 2.367.271,21,620,336,3 740,934.9 - 2,367,271.2

997,978.31,087,796.3 - - 2,085,774,6 997,973.31,337.799,3 238-9- .7862.05706- 2357786 31 1 3 831

997,978.31,087,796,3 2,- 5,174.649 - 97,978.31,087,796,3 - 2035,774,62,085,774.9 - ,C85.774.9

185,314.9 114,934,3 125,352.3 135.326,5 997,114.3 13,176,7 1.389 114.934,3 225.352.3 135.129,5 897.104,3 7,2, 67.393-5 497,134.8 1.15 0.85 0 88P 59,138.0 64,796.3 71,813.9 76,432,7 289,197,7 9J.129 59163 64.799,7 70,801.9 76.417.7 28C17.19,7223,451.3 159,746.8 ' 80,197,71.15 0.4 0 LIP 23,655.2 25.918,5 28,321.6 38,575.1 112,079,1 - 3,608.8 23.69552 25.918,0 28.321,9 30976 112.079,1 41.180.5 63,898,6 - 112,079.18.15 7.4 0 LIT

1818.108,1285,648.1 224,477.8 242,339.3 389,381,6 - 29.187,3 118,108.1105,949.1 224.477,8 2'42,339,3 889,381.6 598.643.2 290.738.4 - 889.381,9

188,188.1205,649,1 224,477.8 242,339.3 889,381.6 - 28,817.0113,101. 225.849,1228,477,0 242,339.3 089,381.6 998,643,2 293,738,4 - 889.381.6

5152.56.341.3 61.473,1 66,064.4 283.231.4 - 0,74 9912 5.341 81.873,1 69.364,4 283.231,4 22,028, 94,303,2 283.23114 0.15 0,75 8 T78

51,S82.2 56.341,3 61.473,1 66,364.4 287,231.4 - 47.470.; 2i.182.2 5o,341,3 611.473,169.364,4 283.231,921,128.2 64.303.2 - 283,231,4 11,582.2 36.341,3 61,473.1 66,364.4 283,231.4 - 47.470,4 51,582.2 55.341.3 :1431 66.394.8 29,3.214 218.928.2 $4,303.2 283,231,4

1,716,596.82.349.211.9 2.038,731.5 1.072.314.4 5,639,372.4 184,354.9 365.662,9 2,716,999,8 2.349,218.9 '.730.'31.5 1.172,114,4 ',o39.37_4 5o679,372.4 - 7639,372.41.15 0 EA88 107,677,0 98,086.9 97,401.2 105.191.4578,735.5 57.386,0 33.333,1IW.-677,0 98.289,9 0,7.001,22.5, 573,735,9 - 58.735,5 - 578,739. 0.15 0 86EA 102.408,0 96,256 27.458, 27,621.3 923,478.0 61.673,0137,695.0 112.438,0 99,629,o 27.498,0 27.621,3 423.473.,0 423,487.0 - 423,478.0 8.15 3 0 888 1.976.681,82,543.924,3 2.150.590.7 1.215.5837.1 8.641.S85.9 223,111,9 536.691,li.87,6.681,l 2,943,924,1 2.115,9.59.7 l,235,587.il 3,641.585,4 - 8,641,515.9 - 9,641.585.9 24.443.381,729,861,357,1 25,2011136.0 15.066.856.4 128.263.018.3 4.862.310.8 9,327,977,.2 24.443.381,7 29,961.357.1 .25.221.139.2 I5.266,89o.4 108.263,118. 42.322.553.4 64,715.285.6 1,2,93113,26o0,18,3 24,44.381.25.81.13.529.91.2571 15266.86.4 18,263818.34.062.318.1 9,32,97,' 74.443.381,7 24,961,35,12.20.3, 15.20o,859.4 '108,263.018,3 42,321.053.4 64.789,2150Ž 1.2.7 108.263.018.3

- 59 -

ANNEX 1 Table 6 INDONESIA

SECOND SWAMP RECLAMATION PROJECT

Consulting Services: Categories and Estimated Schedules (Man-months)

Exec. Indonesian fiscal year Agency Assignment 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 Total

Expatriate Consultants DOS Implementation management, and operation and mainte. - 24 24 24 24 10 106 Upgrading studies, design 9 24 12 - - - 45 Master plan studies 15 80 - - - - 95 Monitoring and evaluation - 2 12 12 6 6 38

AARD Agricultural research 6 42 48 - - - 96

DGFCA Monitoring and evaluation - 2 12 6 4 4 28 MOT Monitoring and evaltuation - 4 4 3 3 2 16 PLP Land clearing procedures - 5 12 12 7 - 36

Subtotal 30 183 124 57 44 22 460

Local Consultants Professionals DOS Implementation mgmt and O&M - 24 28 28 28 24 132 Drinking water investigations - - 48 23 - - 71 Monitoring and evaluation - 6 18 18 7 7 56 Upgrading studies, design, supervision 24 72 72 - - - 168 Master plan studies 48 96 20 - - - 164

DGFCA Monitoring and evaluation - 4 24 24 14 14 80 MOT Monitoring and evaluation - 4 8 8 6 6 32 MOT Final land preparation - - - 36 36 36 108 AARD Agricultural research - 120 120 120 - - 360

Subtotal 72 326 338 257 91 87 1,171

Subprofessionals DOS Implementation mgmt and O&M - 48 72 72 72 66 330 Drinking water investigations - - 70 70 - - 140 Monitoring and evaluation - 6 18 18 7 7 56 Upgrading studies, design, supervision 42 204 204 - - - 450 Master plan studies 48 158 144 - - - 350

DGFCA Monitoring and evaluation - 4 24 24 14 14 80 MOT Monitoring and evaluation - 4 8 8 6 6 32

Subtotal 90 424 540 192 99 93 1,438 60- ANNEX 1 Table 7

INDONESIA

SECOND SWAiMPRECLAMATION PROJECT

List of Equipment

Unit Quantity Unit cost Total ($) ($)

Base Camn (:F3S) Geenerators EA 9 33,000 278,000 Radio equipment EA 2 25,000 50,000 WorkshoD LS - - 200,000 Water supply LS - - 110,000

Subtotal 638 000

Dtirkng WXater Invest. (P3S) & pumps EA 10 7,500 75,000

Sub-total 75000

Ag. Research (2 centers) (AARD) Agrometeorologic equipment LS 224,000 Boats EA 10 15,000 150,000 Bicyles EA 30 200 6,000 Laboratory Water/soil equipment LS 800,000 Office equipment LS 220,000 Fiell e-cuipmerit 200,000 ^:;Ke.>-ialsand supplies LS 400,000

Subtotal 2,000,000

Plant Protection (DGFCA) Traps, baiting equipment LS 24,000 Boats 2 15,000 30,000 Lab equipment LS 39,500

Sutotal 93,500

O&I fFPPW) 7- aglines EA 8 180,000 1,440,000 Spares LS - 60,000

Subtotal 1,500,000

Total 4,311,000 INDONESIA

SECOND SWAMP RECLAMATION PROJECT

Mean Montly Climatological Data

Total or annual Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec mean

Average rainfall /a 225 230 291 266 201 136 103 162 172 252 292 302 2,632

Temp. (°C) 25.7 25.9 26.2 26.7 26.9 26.5 26.2 26.4 26.4 26.7 26.4 26.0 26.3

Relative humidity (%) 86 86 86 86 85 84 82 81 82 82 84 86 84

Evap. (Penman) mm/day 4.2 4.4 4.5 4.5 4.5 4.3 4.4 4.9 4.8 4.9 4.5 4.2 4.5

/a Lalang River Catchment, Post WW II Data.

-CO - 62 - ANNEX 2 Table 1

INDONES IA

SWAMP RECLAMATION PROJECT 1I

Price Structures for Agricultural Output (End 1983 currency values)

Operation 1983 1985 1990 1995

Rice Export price, Thai 5% brokens, f.o.b. 13angkok, US$/ton 327 336 455 447 Quality adjustment /b 90% 294 302 410 402 Freight alnd insurance + 30 30 30 30 C.i.f. price, Palembang = 324 332 440 432 Port handling, storage & losses /c + 25 25 25 25 Transfer to wholesalers + 3 3 3 3 Transfer maills to wholesalers - 2 2 2 2 Ex-mill price, Palembang = 350 358 466 458 Conversion to paddy 65% 227 233 303 297 Mlilling and cleaning costs less value of byproducts - 7 7 7 7 Paddy transport, Karang Agung to Palembang and transfer to wholesalers - 20 20 20 20 Paddy transport, wholesaler to mill - 3 3 3 3 Economic farm-gate price, US$/ton = 197 203 273 967 Economic farm-gate price, Rp/kg /d = 197 203 273 267 (Financial farm-gate price, Rp/kg) /g (150) (180) (207) (267) Corn (maize) Export price, f.o.b. US Gulf port, USS/ton /a 129 134 152 152 Adjusted export price, f.o.b. Palembang /e + 15 15 15 15 Port handling - 10 10 10 10 Transport farm to wholesaler and port - 20 20 20 20 Economic farm-gate price, US$/ton = 114 119 137 137 Economic farm-gate price, Rp/kg /d 114 119 137 137 (Financial farm-gate price, Rp/kg) /g (105) (119) (137) (137) Coconut Oil Export price, f.o.b. Manila, US$/ton /a 450 750 745 735 Freight and insurance + 40 40 40 40 C.i.f. Indonesia ports = 490 790 785 775 Port handling, transport from factory + 25 25 25 25 Ex-factory = 515 815 810 800 Transport to factory - 5 5 5 5 Economic farm-gate price, for coconut oil US$/ton = 510 810 805 795 Economic farm-gate price, for coconuts,/f US$/nut = 0.079 0.126 0.125 0.123 Economic farm-gate price, for coconuts,7T Rp/nut 79 126 125 123 (Financial farm-gate price, Rp/kg) /g (50) (65) (80) (123) Fresh Coconuts Index of world coconut oil price in constant index 100 167 166 163 terms (%) Economic and financial farm-gate price, US$/nut = 0.10 0.17 0.17 0.17 Economic and financial farm-gate price, Rp/nut /d 100 170 170 170 Fresh Bananans (bunch) Index of world export price of bananas in constant terms (%) index 100 99 92 84 Economic and financial farm-gate price, US$/hunch 0.72 0.71 0.66 0.61 Economic and financial farm-gate price, Rp/bunch /d 720 710 660 610

/a All world prices are based on Bank projections with adjustment to mid-1983 constant dollars by indexes (MUV) of 100, 100.5 and 107.0% for 1981, 1982 and 1983 respectively. /b 90% of world price based on spot checks and regressions. See paper IBRD/AEPIA 1979. 7W Source: BULOG. The breakdown of these costs is as follows (Rp/ton): Port costs = 2,800 Transport to warehouse = 2,900 Spraying & fumigation = 400 Unloading = 3,700 Warehouse rent = 1,000 Total 10,800 (US$17) Losses at unloading 0.5% and 1.0% at warehouse = 5,000 (US$8). /d Converted at an estimated exchange rate of Rp 1,000 = US$1.00 7e Assuming Indonesia is a net exporter of corn, the export price (f.o.b. Indonesia) is estimated at world market price plus a US$15 transport premium for Asian markets. /f Converted at a rate of 1 ton coconut oil = 1.61 ton copra = 6452 coconuts. 7g Financial prices of 1983 are actual prices collected in the field by the mission; prices of 1985, 1990 and 1995 are adjusted by the mission to reflect anticipated changes in the relative prices of tradables and nontradables subsequent to the devaluation of March 30, 1983. - 63 - NNEX2 Table 2

INDONESIA

SWAMP RECLAMATION PROJECT II

Price Structures for Agricultural Inputs (End 1983 currency values)

Oper- ation 1983 1985 1990 1995

Urea - 46% N World export price, f.o.b. Europe, US$/ton 200 228 284 294 Ex-factory price, Palembang Ia 215 243 299 309 Hlandling and distribution to retail level, Karang Agung + 11 11 11 11 Storage and transfer to farm + 4 4 4 4 Economic farm-gate price, US$/ton = 230 258 314 324

Economic farm-gate price, Rp/kg /b - 230 258 314 324 (Financial farm-gate price, Rp/kg) /c (90) (108) (120) (150)

TSP - 46% P?O, World export price, f.o.b. Florida, USS/ton 172 186 209 209 Freight & insurance to Palembang + 34 34 34 34 iiandling and distribution to retail level, Karang Agung + 11 11 11 11 Storage and transfer to farm + 4 4 4 4 Economic farir-gate price, US$/ton = 221 235 258 258 Economic farm-gate price, Rp/kg /b = 221 235 258 258 (Financial farm-gate price, Rp/Kg) /c (90) (108) (120) (150)

Insecticides Economic farm-gate price, US$/liter 10.0 10.0 10.0 10.0 Economic farm-gate price, Rp/liter 10,000 10,000 10,000 10,000 (Financial farm-gate price, Rp/liter) (2,400) (2,880) (3,264) (4,140)

Rodenticide - Zinc Phosphide Economic farm-gate price, US$/kg 6.7 6.7 6.7 6.7 Economic farm-gate price, Rp/kg /b 6,700 6,700 6,700 6,700 (Financial farm-gate price, Rp/kg) /c (2,760) (3,040) (3,310) (3,870)

Purchased Seeds Rice Economic farm-gate price: US$/kg /d 0.20 0.20 0.27 0.27 Rp/kg /b 200 200 270 270 (Financial farm-gate price, Rp/kg) /c (240) (270) (288) (331)

Corn Econonic farm-gate price: US$/kg /d 0.11 0.12 0.14 0.14 Rp/kg /b 110 120 140 140 (Financial farm-gate price, Rp/kg) _/c (150) (170) (180) (207)

Coconut Economic farm-gate price : US$/seedling 0.36/e 0.60 0.60 0.59 Financial farm-gate price: Rp/seedling 360 600 600 590

Bananas Economic farm-gate price : US$/sucker 0.16/e 0.16 0.15 0.13 Financial farm-gate price: Rp/sucker 160 160 150 130

Hired Unskilled Labor Economic and financial US$/day /e 1.20 1.20 1.20 1.20 farm-gate price: Rp/day 1,200 1,200 1,200 1,200

/a Urea is valued ex-PUSRI plant, Palembang. Price projections for bagged urea, f.o.b. Europe have been adjusted to Asian markets by adding a transport premium of US$15/ton. /b Prices are converted at an exchange rate of Rp 1,000 = US$1.00. 7Y Financial prices of 1983 are actual prices collected in the field by the mission; prices of 1985, 1990 and 1995 are adjusted by the mission to reflect anticipated changes in the relative prices of tradables and nontradables subsequent to the deval- uation of March 30, 1983. /d The economic price of seed is equivalent to the economic farm-gate price of products, assuming that with the project increased area and production of seed will be at the cost of either imports or exports of the relevant products to be produced in the area. /e Converted from financial prices. ANNEX 2 -64 - Table 3

INDONESIA

SWAMPRECLAMATION PROJECT II

Representative Farm Model - Settler Arriving May 1986 (Group A)

Physical Inputs and Output

Crop/Fiscal Year (April 1-March 31) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15-35 Year of Arrival

Area Cleared (ha) /a House lot 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 Exterded hone lot 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 Field plot 0.40 1.00 1.40 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75

Area Planted (ha) /b House lot Food croos /c (wet season) 0.15 0.10 0.10 0.10 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 Food crops (Try season) - 0.10 0.10 0.10 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 Coconuts /d 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Bananas I/T 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10

Extended house lot Paddy /e (wet season) 0.15 0.18 0.20 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 Wood crops /c (dry season) ------0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25

F_eld plot Paddy /e (wet season) 0.24 0.64 1.08 1.37 1.57 1.68 1.75 3.43/f 1.75 1.75 1.75 1.75 1.75 1.75 1.75

Yielc 9ouse l ot Food crops (ton/ha) 0.60 0.60 0.80 1.00 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 1.20 Coconoits (nuts/ha) ------1,500 2,500 3,000 4,000 5,000 6,000 7,000 8,000 8,500 B-aros /d (bunches/ha) - 600 600 600 900 900 900 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200

Exs'nded hooselot Paddy (tor/ha) /1 - 1.1 1.3 1.6 2.0 2.2 2.6 2.6 2.6 2.6 2.6 2.6 2.6 2.6 2.6 E ,d c'ops /c (ton/ha) ------0.6 0.8 1.0 1.2 1.2 1.2 1.2 1.2 1.2

-audd, kon/ha) _jI - 1.0 1.2 1.5 1.9 2.1 2.3/k 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5

u dton (per farm.) Pakldy !tons) - 0.41 1.00 1.94 3.10 3.85 8.54 5.03 5.03 5.03 5.03 5.03 5.03 5.03 5.03 "od crops (tons) 0.09 0.12 0.16 0.20 0.12 0.12 0.24 0.32 0.87 0.42 0.42 0.42 0.42 0.42 0.42 .,-,lts (nuts) ------75 125 150 200 250 300 350 400 425 (-r 'p4 ruts for I kg of copra) ------19 31 38 50 63 75 88 100 106 r:aras (bunches) - 60 60 60 90 90 90 120 120 120 120 120 120 120 120

9lvo cal Inputs (per farm) erti_izers /h -Crea (paddy) (kg) - - - - - 40 562 300 300 300 300 300 300 300 300 iSP 'paddy) (kg) - - - - - 20 281 150 150 550 150 150 150 150 150 i 0- 0 0foodcrops) (kg) 15 20 20 20 20 20 50 50 60 70 70 70 70 70 70 tiSP (food crops) (kg) 10 10 10 10 10 10 25 25 30 35 35 35 35 35 35 -cl c /i a4cais Insecticide (paddy) (1) 2.0 4.20 6.00 6.00 6.00 6.00 12.00 6.00 5.00 4.00 4.00 4.00 4.00 4.00 4.00 Rodenticide (paddy) (kg) 2.0 4.20 6.00 6.00 6.00 6.00 12.00 6.00 5.00 4.00 2.00 1.00 1.00 1.00 1.00 insecticide (food crops) (1) ------0.50 0.50 0.60 0.70 0.70 0.70 0.70 0.70 0.70 Rodenticide (food crops (kg) ------0.75 0.75 0.75 0.75 0.50 0.25 0.25 0.25 0.25 Seeds /P Paddy (kg) 10.00 20.50 32.00 40.50 48.25 50.00 50.01) 100.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 Food crops (kg) 5.25 7.00 7.00 7.00 3.50 3.50 10.50 12.25 12.25 12.25 12.25 12.25 12.25 12.25 12.25 Coconuts (seeding) 15.00 ------Bananas (sucker) 75.00 ------

Labor Inputs (per farm) Family labor (man-days) 380 483 530 521 522 451 455 581 476 503 503 503 503 503 503

/a Assumes home lot cleared but not destumped on arrival of settlers; initial felling and clearing of field plots by chain saw groups and manual labor by settlers requiring about 65 man-days per ha. /b Net area planted after clearinig estimated as 60% in year 1, 70% in year 2, 80% in year 3, and 100% in year 4 to allow for burning and removal of stumps. /c Covers a variety of possible short-term field crops including corn, soybean, groundnut, vegetables, sweet potato, etc. Corn is used as the representative crop. /d Mixture of fruit trees established in home lot, coconuts and bananas taken as representative crop. /e Assumes local long-term varieties during land development phase of about 6 years, thereafter introduction of improved shorter-term varieties. /f On 7th year settlers are expected to harvest twice within that crop year (one in May for local variety and other in February for HYV). All inputs and outputs have been adjusted accordingly. /g Yield of dry (14% moisture content) threshed grain. /h For paddy, on and after 7th year lO kg urea and 75 kg TSP per ha; for foodcrops 100 kg urea and 50 kg TSP per ha. Part used for appli- cation to perennials in home lot. /i Variable quantities dependent on intensity of pest problems; maximum allocation 3 liter insecticide and 3 kg rodenticide per ha per crop season. /j Seed rate for paddy, 25 kg/ha; for corn, 35 kg/ha; for coconut, 150 seedlings/ha; and for banana, 750 suckers/ha. Perennial crop planting materials supplied in first: year of settlement and replaced as necessary from farmers' own stock. /k Average yield of local and improved varieties. 65 -NIs.X 2I Table 4

INDIONESIA

SWAMP RECLAMATION PROJECT II

Representative Farm Model - Settler Arriving Dec 1986 (Group B)

Physical Inputs and Output

Crop/Fiscal Year (April I-March 31) _ 2 3 4 5 6 7 8 9 10 II 2 13 14.5-35 Year of Arrival

Area Cleared (ha) /a House lot 0.25 0.25 0.25 0.25 0.25 0.25 0.25 n.25 0.25 0,25 0.25 .25 0,25 0.25 0G25 Extended home lot 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.2' Field plot - 0.60 5.20 5.60 5.75 1.75 1.75 1.75 1.75 1.75 5.75 1.75 1.75 1.75 1.75

Area Planted (ha) /h House lot Food crops /c (wet season) 0.15 0.10 0.10 0.10 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 Food crops (dry season) - 0.l0 0.50 o.1n 0.05 0.05 0.05 0.05 0.05 O.n5 0.05 0.05 0.05 0.05 0.05 Coconuts /d 0.10 0.10 0.l0 0. 0. 50 0.50 0.0 0.50 0.5 0.50 0.50 ._0 o.1 0.0 0.50 Bananas /d 0.10 0.00 0.50 0.50 0.50 0.50 n.I0 0.10 0.10 0.50 0.i0 0.50 0.i O.Inl 0.10

Extended house lot Paddy /e (wet season) - 0.55 0.58 0.20 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 e.25 0.25 0.25 Food crops /c (dry season) ------0.25 0.25 0.25 0.25 0.25 0.25 0.25 0-25 0725

Field rlot Paddy /e (wet season) - n.36 0.78 5.54 1.45 1.63 5.72 3.47/f 1.75 1.75 1.75 1,75 1 75 1.5 1 75

Yield House lot Food crops (ton/ha) - 0.60 0.80 5.On 1.20 5.20 .20 .20 1.20 1.20 1.20 5 20 1.20 * 25 1,21 Coconuts (nuts/ha) ------5,500 2,500 3,000 4,000 5,000 6,000 /,000 4,000 8,500 Bananas /d (hunches/ha) - 600 600 600 900 900 900 1,200 5,200 5,2n0 1,200 5,200 1,200 1,200 1,200

Extended house lot Paddy (ton/ha) /g - - 5.5 5.3 1.6 2.0 2.2 2.6 2.6 2.6 2.6 2.6 2.6 2.6 2.6 Food crops /c (ton/ha) ------n.6 0.8 5.0 5.2 l.2 1.2 5.2 1.2 1.2

Field plot Paddy (ton/ha) /g - - 5.0 1.2 5.5 1.9 2.5 2.3/k 2.5 2.5 2.5 2.5 2.5 2.5 2.5

Production (per farm) Paddy (tons) - - 0.53 1.17 2.03 3.25 3.97 8.63 5.03 5.03 5.03 5.03 5.03 5.03 ;,n3 Food crops (tons) - n.09 0.56 0.20 0.24 0.52 0.24 0.32 0.37 0.42 0.42 0.42 0,42 0.42 0,42 Coconuts (nuts) ------75 525 l50 200 250 300 350 -00 425 Copra (4 nuts for I kg of copra) ------59 31 38 50 63 75 88 103 106 Bananas (bunches) - 60 60 60 90 90 90 120 520 120 120 120 120 120 120

Physical lnputs (per farm) Fertilizers /h UIrea (paddyT (kg) ------40 562 300 300 300 300 300 300 300 TSP (Daddy) (kg) ------20 285 550 155 150 550 150 550 150 Urea (food crops) (kg) - 55 20 20 20 20 20 50 50 60 70 70 70 70 70 TSP (food crops) (kg) - lO l0 lO 50 l0 50 25 25 30 35 35 35 35 35 Chemicals /i Insecticide (paddy) (1) - 2.0 4.20 6.00 6.00 6.00 6.00 52.00 6.00 .00n 4.00 4.00 4.00 4.00 4.00 Rodenticide (paddv) (kg) - 2.0 4.20 6.00 6.00 6.00 6.nO 12.00 6.00 5.00 4.00 2.00 5.00 1.00 1.00 Insecticide (food croDs) (5) ------0.50 0.50 0.60 0.70 0.70 0.70 0.70 0.70 Rodenticide (food crops (kg) ------0.79 0.75 n.75 0.75 0.50 0.25 0.25 0.25 Seeds /1 Paddy (kg) - 50.00 20.50 32.00 40.50 48.25 50.00 50.00 500.00 50,00 50.00 50.00 50,00 50.00 50.02 Food crops (kg) - 5.25 7.00 7.00 7.00 3.50 3.50 10.50 12.25 52.25 l2.25 12.25 12.25 12.25 12.25 Coconuts (seeding) 55.00 ------Bananas (sucker) 75.00 ------

Labor Inputs (per farm) Family labor (nan-days) 90 480 483 530 525 522 451 455 58l 476 503 50 i 03 .53 ;1

/a Assumes home lot cleared hut not destumped on arrival of settlers; initial felling and clearing of field plots by chain saw groups and manual labor by settlers requiring about 65 man-days per ha. lb Net area planted after clearing estimated as 607 in year 5, 707 in year 2, 80% in year 3, and 500% in Year 4 to allow for burning and removal of stumps. /c Covers a variety of possible short-term field crops including corn, soybean, groundnut, vegetables, sweet potato, etc. Corn is used as the representative crop. /d Mixture of fruit trees established in home lot, coconuts and bananas taken as representative crop. /e Assumes local long-term varieties during land development phase of about 6 years, thereafter introduction of improved shorter-tern varieties. 7T On 7th year settlers are expected to harvest twice within that crop year (one in May for local variety and other In February for MIYV). All inputs and outputs have been adjusted accordingly. Yield of dry (14% moisture content) threshed grain. th For paddy, on and after 7th year l50 kg urea and 75 kg TSP per ha; for foodcrops 500 kg urea and 50 kg TSP per na, sirt se. fa appli- cation to perennials in home lot. /i Variable quantities dependent on intensity of pest problems; maximum allocation 3 liter insecticide and 3 kg rodentlcidle per ha p.- crcp season. Seed rate for paddy, 25 kg/ha; for corn, 35 kg/ha; for coconut, l50 seedlings/ha; and for banana, 750 suckers/ha. Pe-.znaial .5p p'ant--c materials supplied in first year of settlement and replaced as necessary from farmers- own stock. /k Average yield of local and improved varieties. INDONESIA SECONDSWAMP RECLAMATION PROJECT FAMILYINCOMIE ANALYSIS FOR A TYPICALSETTLER (GROUP A)* FINANCIALPRICES: RUPIAH

YEAR 3 4 5 6 8 9 10 11 12 13 14 15 16 17-57

CROPREVENUE

PADDY 0.00 72900.00180360.00 349200.00 556540.00 796329.00 1767573.00 1040175.00 1040175.00 1040175.00 1341675.00 1341675.00 1341675.00 1341675.00 1341675.00 CORN 10710.00 14280.00 19040.00 23800.00 14280.00 16440.00 36990.00 43840.0050690.00 57540.00 57540.00 57540.00 57540.00 57540.00 57540.00 FRESH4COCONUTS 0.00 0.00 0.00 0.00 0.00 0.00 12750,00 21250.0025500.00 34000.00 42500.00 51000.00 59500.00 68000.00 72250.00 COCONUTOIL 0.00 0.00 0.00 0.00 0.00 0.00 6000.00 10000.00 12000.00 16000.00 30750.00 36900.00 43050.00 49200,00 52275.00 BANANAS 0.00 42600.00 42600.00 42600.00 63900,0059400.00 59400.00 79200.0079200.00 79200.00 73200.00 73200,00 73200,00 73200,00 73200.00 SUBTOTAL 10710.00129780.00 242000.00 415600.00 636720,00 872169,00 1882713,00 1194465,00 12075565.00 1226915.00 1545665.00 1560315.00 1574965,00 CROPEXPENDITURE 1589615.001596940.00 imA 1620,00 2160.00 2160.00 2160,00 2160.00 7200.00 73440.00 42000,00 43200.00 44400,0055500,00 55500.00 55500.00 55500.00 55500,00 TSP 1080.00 1080.00 1080.00 1080.00 1080.00 3600.00 36720,00 21000.00 21600,00 22200.00 27750.00 27750.00 27750.00 27750.00 27750.00 INSECTICIDE 5760.00 12096.00 17280.00 17280.00 17280.00 19584,0040800.00 22032.00 19910.40 15340,80 19458.00 19458.00 19458,00 19458.00 19458.00 RPENTICIDE 6080.00 12768.00 18240.00 18240.00 18240.00 19860.0042202.50 22342.50 19032.50 15722.50 9675.00 4837.50 4837.50 4837.50 4837.50 PADDY 0,00 2632.50 5535.00 8640.00 10935.00 13104.0026496,00 14400.0014400.00 14400.00 16550.00 16550.00 16550.00 16550.00 16550.00 a DRY 9 . ~~~~~~~~~1190.00119000 1190.00 595.00 630.00 2205.00 2205.00 2205.00 21205.00 25357' 2535.75 2535.75 2535.75 25357~ F& T 000 9~~~~~90H8 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00O 0.00 0.00 Ng0 BANANA 12000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0,00 0.00 0.00 0.00 0.00 0.00

SUBTOTAL 36432.50 31926.50 45485.00 48590.00 50290.00 63978.00221863.50 123979.50 120347.90 1142168.30 131468.75 126631.25 126631.2 1266311,25126631.25 EARNINGS.'CROP PROD -25722.5097853.50 196515.00 367010.00 586430.00 808191,00 1660849.50 1070485.50 1087217.10 1112646.70 1414196.25 1433683.75 1448333.75 1462983.75 1470308.75 EARNINGS:LIVESTOCK 12400.00 214800.0024800.00 24800.00 24800.00 24800.00 24800.00 24800.00 24800.00 24800.00 24800.00 24800.00 24800.00 24800.00 214800.00 TOTALFARM EARNINGS -13322.50122653.50 221315.00 391810.00 611230.00 832991.00 1685649.50 1095285.50 1112017.10 1137446.70 1438996.25 1458483.75 1473133.75 1487783.75 1495108.75 OFF-FARDINCO9IEt 84000.00 63600.00 0.00 0.00 20600.00 41200.0061800.00 82500.00103000.00 103000.00 103000.00 103000.00 103000.00 103000.00 103000.00 TAXES(EPEDA) 0.00 0.00 0.00 0.00 0.00 17100.00 18500.0019500.00 20000.00 22500.00 22500.00 242500.0022500.00 22500.00 22500.00 INPUTSUBSIDY + 36432.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 SUBSISTALLOUANCE ++ 308000.00196000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTALFAMILY INCOME (RP) 415110.00382253.50 221315.00 391810.00 631830.00 857091.00 1728949.50 1158285.50 1195017.10 1217946.70 1519496.25 1538983.75 1553633.75 1568283.75 1575608.75 US $EOUIlV.*** 415.11 382.25 221.31 391.81 631.83 857.09 1728.95 1158~29 1195.02 1217.95 1511950 1538.98 15553.63 1568.28 1575.61 PERCAPITA INC.(US$1 83.02 76.45 44.26 78.36 126.37 171.42 345.79 231.66 239.00 243.59 303.90 307.80 310.73 313.66 315.12

A GROUPA SETTLERS ARRIVI1NG DURING EARLY' DRY SEASON (MARCH-JUNE) WITHS' FAMILYMiEOBERSC. 0 FIRS'T2 YiEAR'SOFF-FARM INCOME DERIVED FROM LAND CLEARING. + INITIALFARMING INPUTS TO BE PROVIDED BYTHE GOVERNMENT. l l ++ INCLUDINGBASIC FOOD AND UTILITIES' AMOUNTING TOABOUT RP 217000 PER MONITH PER FAMILY, 4$*8TH YEAR'S INCOME IS HIGH BECAUSE OP ANADDITIONAL PADDY CROP HARVESTED, SEE TABLE 2 FOOTNOTEP. INDONESIA SECONDSWANP RECLAMATION PROJECT FAMILYINCONE ANALYSIS FOR A TYPICALSETTLER (GROUP B) t FINANCIALPRICES: RUPIAH

__-- ______-- __--______-- ___ ----_ --_ --_ ----______-- _-- __-- ______------______--___…_------______-- _-- __- ______--______-- ____-- _____---- ______-- YEAR 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17-37

CROPREVENUE PADDY 0O00 0.00 94500.00 210600.00 365400.00 673785.00 822411.00 1786617.00 1040175.00 1040175.00 1341675.00 1341675.00 1341675.00 1341675.00 1341675.00 CORN 0.00 10710.00 19040.00 23800.00 28560.00 16440.00 36990,00 43840.00 50690.00 57540.00 57540.00 57540.00 57540.00 57540.00 57540.00 FRESHCOCONUTS 0.00 0.00 0.00 0.00 0.00 0.00 12750.00 21250.00 25500.00 34000.00 42500.00 51000.00 59500.00 68000.00 72250.00 COCONUTOIL 0.00 0.00 0.00 0.00 0.00 0.00 6000.00 10000.00 12000.00 16000.00 30750.00 36900.00 43050.00 49200.00 52275.00 BANANAS 0.00 42600.00 42600.00 42600.00 63900.00 59400,00 59400.00 79200.00 79200.00 79200.00 73200.00 73200.00 73200.00 73200.00 73200.00 SUBTOTAL 0.00 53310.00 156140.00 277000,00 457860.00 749625,00 937551.00 1940907.00 1207565.00 1226915.00 1545665.00 1560315.00 1574965.00 15B9615.00 1596940.00 CROPEXPENDITURE UREA 0.00 1620.00 2160.00 2160.00 2160,00 2400.00 7200.00 73440.00 42000,00 43200.00 55500.00 55500.00 55500.00 55500.00 55500.00 TSP 000 1080.00 iO80.00 1080.00 i060.00 1200.00 3 0 36720.00 21000.00 21600.00 27750.00 27750.00 27750.00 27750.00 27750.00 INSECTICIDE 0.00 5760.00 12096,00 17280,00 17280.00 19584,00 19584.00 40800.00 22032.00 19910.40 19458.00 19458,00 19458.00 19458.00 19458.00 RODENTICIDE 0.00 6080.00 12768.00 18240.00 18240,00 19860,00 19860.00 42202.50 22342,50 19032,50 18382,50 9675.00 4837.50 4837,50 4837.50 SEEDS PADDY 0.00 0.00 3442.50 6480,00 9045.00 12240.00 13536.00 26784.00 14400.00 14400,00 16550,00 16550,00 16550,00 16550.00 16550.00 CORN 0.00 892.50 1190.00 1190.00 1190.00 630.00 2205.00 2205.00 2205.00 2205.00 2535.75 2535.75 2535.75 2535.75 2535.75 COCONUT 9000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.O0 0.00 0.00 0.00 0.00 0.00 BANANA 12000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0,00 0.00 0.00 0.00 0.00 0.00

SUBTOTAL 21000,00 15432.50 32736.50 46430.00 48995.00 55914.00 65985.00 222151.50 123979.50 120347.90 140176.25 131468.75 126631.25 126631.25 126631.25 EARNINGS:CROP PROD -21000.00 37877.50 123403.50 230570.00 408865.00 693711.00 871566.00 1718755,50 1083585.50 1106567.10 1405488.75 1428846.25 1448333.75 1462983.75 1470308.75 24800.00 24800.00 24800.00 EARNINGS:LIVESTOCK 12400.00 ---_24800.00 _---…----_---_--_---_-_------_---_------_---_------_---_------_---_------_--- 24800.00 24800.00 24800.00 24800,00 24800.00…-- 24800.00 24800.00_ -- 24800.00------24800.00_ ------24800.00_ ------__ -______- TOTALFARM EARNINGS -8600.00 62677.50 148203.50 255370.00 433665.00 718511.00 896366.00 1743555.50 1108385.50 1131367.10 1430288.75 1453646.25 1473133.75 1487783.75 1495108.75 OFF-FARMINCOME St 60000,00 84000.00 63600.00 0,00 20600.00 41200.00 61800.00 82500.00 103000.00 103000.00 103000.00 103000.00 103000.00 103000.00 103000.00 TAXES(EPEDA) 0.00 0.00 0.00 0.00 0.00 17100.00 18500.00 19500.00 20000.00 22500.00 22500.00 22500.00 22500.00 22500.00 22500.00 INPUTSUBSIDY + 21000.00 15432.50 0.00 0.00 0.00 0.00 0.00 0.00 0,00 0.00 0.00 0,00 0.00 0.00 0.00 SUBSIST.ALLOVANCE t 84000.00 336000.00 84000.00 0.00 0.00 0.00 0,00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ------…------TOTALFAMILY INCOME (RP) 156400.00 498110.00 295803.50 255370.00 454265.00 742611.00 939666.001806555.50 1191385.50 1211867.10 1510788.75 1534146.25 1553633.75 1568283.75 1575608.75

USS EUIV.*$* 156.40 498.11 295.80 255.37 454.27 742.61 939.67 1806.56 1191.39 1211.87 1510.79 1534.15 1553.63 1568.28 1575.61 PERCAPITA INC.(US$) 31.28 99.62 59.16 51.07 90.85 148.52 187.93 361.31 238.28 242.37 302.16 306.83 310.73 313.66 315.12 t GROUPB SETTLERS ARRIVING DURING JULY TO FEBRUARY WITN FAMIL','. EIIBEPS. SS FIRST3 YEAR'SOFF-FARM IKOME DERIVED FROM LAND CLEARIN.G. + INITIALFARMING INPUTS TO BE PROVIDEDBYTHE GOVERMENT. a. Ht INCLUDINGBASIC FOOD AND UTILITIES AMOUNTING TOABOUT RP 28,uOO PER MIONTH PER FAMIL';. *tt 8THYEAR'S INCOME IS HIGHBECAUSE OFAN ADDITIONAL PADDIY CROP HARVESTED, SEETABLE 4, FOOTNOTEF. - 68~ - ANNEX 2 Table 7

INDONESIA

SECOND SWAMP RECLAMATION PROJECT

Labor Requirement of Farming Activities (in Labor Unit)

Month Activity 0 N D J F M A M J J A S Total

Rice (Local Var.) /Ha Seedbed preparation 5 ------5 Field preparation 20 20 ------40 Transplanting - - 15 20 ------35 Weeding - - - - 20 ------20 Fertilizing/spraying ------Harvesting ------20 20 - - - 40 Maintenance - - - 5 - 5 ------10

Total 25 20 15 25 20 5 - 20 20 - - - 150

Rice (HYV)/ha) Seed bed preparation 5 ------5 Field Preparation 10 ------30 40 Transplanting 15 20 ------35 Weeding - 5 10 10 ------25 Fert./Spraying - 2 1 2 ------5 Harvesting - - - - 30 20 ------50 Maintenance - 5 - 5 ------10

Total 30 32 11 17 30 20 - - - - - 30 170

Secondary Crops (Corn)/Ha Field preparation/sowing ------15 15 - - - - 30 Weeding ------25 15 - - 40 Fertilizing/spraying ------2 - 3 - - 5 Harvesting ------25 25 50 Maintenance ------3 2 5 - - 10

Total ------15 20 27 23 25 25 135

Houselot crops/0.25 ha 5 6 5 5 5 6 6 6 5 6 6 6 67

Source: NEDECO-EUROCONSULT, "Tidal Swamp Land Development Project in Lampung, South Sumatra and Central Kalimantan Provinces, Indonesia," Vol. I, General Report, November 1981, p. 213. INDONESIA

SECOND SWAMP RECLAMATION PROJECT

Availability and Requirement of Family Labor per Month for a Typical Settler /a in labor Unit (LU)

Settle- Availability Requirement Balance /d ment Period Hus- Total Total Total Total year /b band Wife Child Child Child LU/day LU/mo. LU/mo. LU/mo.

1 Normal 1.0 0.6 - - - 1.6 38 38 Peak 1.0 0.8 0.2 - - 2.0 60 38 22

2 Normal 1.0 0.6 0.1 - - 1.7 41 41 - Peak 1.0 0.8 0.3 - - 2.1 63 41 22

3 Normal 1.0 0.6 0.3 - - 1.9 46 46 - Peak 1.0 0.8 0.4 - - 2.2 66 59 7

4 Normal 1.0 0.6 0.4 - - 2.0 48 48 - Peak 1.0 0.8 0.5 - - 2.3 69 67 2

5 Normal 1.0 0.6 0.5 - - 2.1 50 50 - Peak 1.0 0.8 0.6 0.2 - 2.6 78 75 3

6 Normal 1.0 0.6 0.5 0.1 - 2.2 53 53 Peak 1.0 0.8 0.7 0.3 - 2.8 84 80 4

7 Normal 1.0 0.6 0.6 0.3 - 2.5 60 50 10 Peak 1.0 0.8 0.8 0.4 0.2 3.2 96 80 16

11-40 Normal 1.0 0.6 - 0.6 0.4 2.6 /c 62 50 12 Peak 1.0 0.8 - 0.8 0.6 3.2 96 80 16

/a At arrival, a typical settler family is composed of husband, 34 years old; wife, 28; the first child, 10; second child, 6; and third child, 4. Children would leave the family on reaching the age of 20 years. H /b A normal month has 24 labor-days, 4 weekly off-days and 2 public holidays. During peak season (November > 2 and March), adults work for 30 days a month to be helped by children after school. X /c Assuming total available labor of 2.6 labor unit (LU)/day will remain from years 11 to 40, although many X N alternatives may exist including the retirement of the adults and replacement of one of the children. /d Surplus of labor on-farm is expected after year 7. INDONESIA

SECOND SWANPRECLAMATION PROJECT

Cumulative Schedule of Houselot Clearing /a. Housing /b, and Settling /c

------…--- Indonesia Fiscal Year ------1985/86 1986/87 1987/88 1988/89 1989/90 Houselot Housing Settling Houselot Housing Settling Houselot Housing Settling Houselot Housing Settling Houselot Housing Settling (ha) (no) (family) (ha) (no) (family) (ha) (no) (family) (ha) (no) (family) (ha) (no) (family)

April - - - 636 500 100 3,180 4,400 3,620 5,724 8,300 7,780 - - 11,500 May - - - 945 825 300 3,498 4,725 4,140 6,042 8,625 8,300 - - - June - - - 1,272 1,150 500 3,816 5,050 4,660 6,360 8,950 8,820 - - - July - - - 1,590 1,475 760 4,134 5,375 4,920 6,678 9,275 9,080 - - - August - - - 1,908 1,800 1,020 4,452 5,700 5,180 6,996 9,600 9,340 - - - o September - - - 2,226 2,215 1,280 4,770 6,025 5,440 7,314 9,925 9,600 - - - October - - - 2,332 2,450 1,540 4,876 6,350 5,700 7,420 10,250 9,860 November - - - 2,438 2,775 1,800 4,982 6,675 5,960 7,500 10,575 10,120 December - - - 2,544 3,100 2,060 5,088 7,000 6,220 - 10,900 10,380 January 106 - - 2,650 3,425 2,320 5,194 7,325 6,480 - 11,225 10,640 February 212 - - 2,756 3,750 2,580 5,300 7,650 6,740 - 11,500 10,900 March 318 175 - 2,862 4,075 3,100 5,406 7,975 7,260 - - 11,160

/a Rate of Settlement - 260 families per month except 520 families/month during March-June (a higher rate could be constrained by transport facilities) which are the most suitable months for agricultural development.

/b Houselot clearing comprises 0.652 ha/family of which 0.5 ha/family is the houselot itself and 0.152 ha/family is the prorated area of common ground, and rate of clearing scheduled as 318 ha/month during the dry season, April-September and 106 ha/month during the wet season, October-March.

/c Housing construction scheduled year-round at 325 houses per month. M INDONESIA SECONDSNWAP RECLAMATION PROJECT StMMARYOFECONOMIC BENEFITS TOTAL PROJECI 8 YVALUEIN USOI1000 AREA IN 100 HMA) __-_-_-_ -- _ --- _-_____-_-_-_-_-_-_-_____-__-_-_-_-___-_-_-_-_-_-_-_ __-_-_-_-_-___-___-_------_ _-_ _-__-_-_-_-_-_-_- __-_ -______-_____ - __- ______- ___- ______- _--_- __- _ _-_ -_ -_ -__ -_-___ -_-_ - --_ ------_ _ _ 19 20-37 YEAR 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

RICE 23.00 23.00 23.00 23.00 23.00 TOTALAREA PLANTED 0.00 0.20 2.18 5.90 10.89 15.40 19.76 27.99 29,17 28.45 23.00 23.00 23.00 57,79 57,79 57,79 TOTALPROWCTION 0.00 0.20 2,33 7.06 15.09 25.62 38.33 61.49 68.15 69.21 57.79 57.79 57.79 57,79 57,79 15429.26 15429.26 TOTALiROSS VALUE 0.00 41.11 473,01 1432.44 3062,54 5809.60 9622.79 16505.36 18605.98 18893,64 15698.20 15580-62 15468.34 15429,26 15429,26 15429.26 CORN 4,03 4.03 4.03 4.03 TOTALAREA PLANTED 0,08 0.69 1,47 2.14 2.25 1.86 2.12 2.77 3.70 4.03 4.03 4.03 4.03 4.03 4.83 4.83 4.83 TOTALPRODUCTIDN 0.05 0.41 0.98 1.65 2.09 1.98 2.10 2,48 3.36 4.07 4.51 4.77 4.83 4.83 4.83 661.71 661.71 661.71 TOTALGROSS VALUE 5.36 48.91 116.88 195.92 248.78 241,12 270,76 337.10 460,81 557.34 618.45 652.83 661.71 661.71 661.71 CDOCNTS

TOTALARE. PLANTED 0.26 0.65 1.02 1.15 1,15 Il,S 1.15 1.15 1,15 1.15 1.15 1.15 1.15 1.15 1.15 1.15 1,15 1.15 5; 4007.50 TOTALPROD (FRESH NUTS) 0.00 0.00 0.00 0.00 0.00 0.00 193.50 615,00 1153.80 1663,70 2145.60 2688.20 3263,20 3838.20 4348.70 46?7,20 4 i. 4855.10 4887,50 TOTALPROD (OIL) 0.00 0,00 0.00 0.00 0,00 0,09 193,50 615.00 1153,80 1663,70 2145,60 2688.20 3263,20 3838.20 4348,70 4697.20 830,88 ORDSSVALUE (LMOE) 0.00 0.00 0.00 0.00 0.00 0.00 32.90 104,55 196.15 282.83 364.75 456.99 554,74 652,49 739.28 798,52 825,37 577.76 597.18 601,16 6ROSSVLUE (OIL) 0.00 0.00 0,00 0.00 0.00 0.00 24.19 76,88 144.23 207.96 266.91 332.53 401.89 472.10 534.89 1422.54 1432,04 TOTALGROSS VALUE 0.00 0.00 0,00 0,00 0.00 0.00 57.08 181.43 340.37 490,79 631.66 789,52 956.64 1124.59 1274.17 1376.28 BANN145 1.15 1.15 TOTALAREA PLANTED 0.26 0.65 1.02 1.15 1.15 1.15 1.15 1.15 1.15 1,15 1.15 1.15 1.15 1.15 1,15 1.15 1380.00 1380,00 1300,00 TOTALPRODUCTION 0,00 154.80 38880 612.24 767.40 804.40 996,12 1112.40 1229.40 1341,12 1380,00 1380,00 1380,00 1380.00 1380000 841.80 841.80 841.80 TOTALGROSS VALUE 0.00 109.91 276,05 434,69 544.85 616.31 678.09 740.02 811.40 05.14 895.32 871,92 849.58 B41,80 841.80 18355.32 18364,81- TOTALVALUE OF PROUCTIO 5.36 199.92 865.94 2063,05 3856.17 6667.03 10628.72 17763,90 20218.57 20826.91 17843,63 17894,89 17936,26 10057.37 18206.94 18309.05

PRODUCTIONCOSTS 1378.62 1378062 TOTALLREA 1,94 17.67 37.80 55,21 59.34 68.51 208.53 896.53 1294.87 1542.49 1313.27 1350.00 1373.82 1378.62 1378.62 1378.62 548.90 548.90 548,90 TOTALTSP 1.18 10.34 19.51 27.03 27.03 30.20 86.82 368.62 531.97 633.70 535.61 544.77 548.90 548090 548.90 540.50 540.50 TOTALINSECTICIDE 10.00 99.00 271.80 491.80 632,40 690.00 722.50 947.25 973.25 924.65 660,70 585.30 540.50 540.50 540,50 540.50 96.31 TOTALPESTICIDE 6.70 66.33 182,11 329.51 423,71 462.30 484.91 641,19 657.44 615.90 427.46 316.91 204.01 123.11 96,31 96.31 96.31 155.25 155,25 TOTALRICE SEED 0.00 0.98 10.90 29.50 54.46 84.79 120.84 185.29 196.92 192.05 155.25 155.25 155.25 155.25 155,25 155.25 19.72 19.72 19.72 TOTALCORN SEED 0,31 2,88 6.15 8.99 9.45 7.99 9.79 13.48 18.13 19.72 19.72 19.72 19.72 19.72 19.72 0.00 0.00 TOTALCOCONUTSEED 23.22 35.10 33.52 11.66 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTALDANAMASUCKER 30.96 46.80 44.69 15.55 0.00 0. 00 0.0 000 0.00 0.00 0.00 0.00 0.00 0.00 0,00 0.00 2739.30 2739,30 TOTALPRODUCTION COSTS 74.31 279,10 606.47 969.25 1206.39 1343.79 1633.38 3052.35 3672.59 3928.52 3112.01 2971.95 2842.21 2766.10 2739.30 2739.30 15625,51 NETVALUE OF CROF PROD -68.95 -79.17 259,47 1093.80 2649.79 5323.24 8995.33 14711.55 16545.90 16898,40 14731.61 14922,94 15094.05 15291.27 15467.64 15569.75 15616.02 285.20 285.20 285.20 285.20 TOTALVALUE OF LIVESTOCK 31.99 112.34 206.88 269.13 285.20 285.20 205.20 285.20 285.20 285.20 285.20 285.20 285.20 285.20 1184.50 1184.50 1184.50 TOTALVALUE OF OFF-FARI 166.80 484,20 689.88 516.84 256.67 186.64 396.84 634.00 071.03 1054.76 1157.93 1184.50 1184.50 1184.50 1184.50 IMUTEDFAMILY LABOR COS 343.04 1668,44 3017.95 3986.12 4025.00 4025.00 4025.00 4025.00 4025.00 4025.00 4025.00 4025.00 4025.00 4025.00 4025,00 4025.00 4025.00 4025.00 13070,21 TOTAL:NET FARM INCOMES -213.20 -1151.07 -1861.72 -2106.35 -833.34 1770.08 5652.37 11605.74 13677.21 14213.36 12149.75 12367.64 12538.75 12735.97 12912.34 13014.45 j3060.72

J ALLPRODUCTION ANDINCOMES ARE FOR NITH-PROJECT SITUATION WHICH ARE ALSO THE INCREiEiTnL ')ALUES OF THE PROJECT SIMOE JO TRODUCTIONS, ARE;SSUMED FOP WITHIOUT -FOJECT SITULITI0l ALLVALUES ARE DERIVED FROM ECONOMIC PRICES (ANNEX 27 TABLESI AnD 2: AHDSETTLEP GROUFS 'ARIVAL SIEDULE .111E. '. TAnLE F0 ANNEX 2 - 72 - Table 11

INDONESIA

SECOND SWAMP RECLAMATIONPROJECT

Rent and Cost Recovery /a (Rp'000)

Present values per farm /g Group A Group B Project /h

1. Gross value of farm and off-farm activities /a 10,436 9,930 10,168 2. Less cash production costs /a 873 804 836 3. Equals net cash income 9,563 9,126 9,331 4. Less imputed family labor cost /b 3,940 3,693 3,809 5. Less imputed farmer's management /c 521 497 508 6. Less allowance for risks/uncertainties/d 1,565 1,490 1,525 7. Less generaLltaxes /c 521 497 508 8. Equals project rent 3,016 2,949 2,980 9. Rent as a % of net cash income (8 - 3) 32% 32% 32% 10. Land taxes (IPEDA) /a 124 124 124 11. OM contributions/e 106 106 106 12. Total direct recovery (10+11) 230 230 230 13. Project cost/farm /f 3,253 3,253 3,253 14. Rent recovery index (12 . 8) 0.08 0.08 0.08 15. Cost recovery index (12 - 13) 0.07 0.07 0.07

/a From Annex 2, Tables 5 & 6. lb Settler's family income (in financial terms) before transmigrationat early 1990s ($350 .'0.85) see paras. 7.04-7.06. /c At 5% of gross value in Item 1. /d At 15% of gross value in Item 1. /e About 10 man-days or Rp 12,000 per year. If Financial project cost excluding costs for program support components and expected price increases. /g Covering whole project life at 10% discounted rate. /h Weighted average at 47% of Group A and 53% of Group B. ANNEX 2 Table 12 - 73 -

INDONESIA

SECOND SWAMP RECLAMATION PROJECT

Economic Rate of Return Calculation (In 1983 US$'000)

Net Net Net value value value Imputed Total Capi- Total crop live- off-- labor bene- tal O&M eco- produc- stock farm costs fits costs costs nomic Cash tion /a /a /a /a /a lb /c costs flow

1984/85 0 0 0 0 0 1,066 - 1,066 -1,066 1985/86 0 0 0 0 0 3,564 - 3,564 -3,564 1986/87 -69 32 1167 343 -213 12,124 - 12,124 -12,337 1987/88 -79 112 484 1,668 -1,151 14,837 - 14,837 -15,988 1988/89 259 207 690 3,018 -1,862 11,160 - 11,160 -13,022 1989/90 1,094 269 516 3,986 -2,106 4,341 - 4,341 -6,447 1990/91 2,650 285 256 4,025 -833 2,126 - 2,126 -2,959 1991/92 5,323 285 186 4,025 1,770 2,126 - 2,126 -356 1992/93 8,995 285 397 4,025 5,652 0 525 525 5,127 1993/94 14,711 285 634 4,025 11,606 0 525 525 11,080 1994/95 16,546 285 871 4,025 13,677 0 525 525 13,152 1995/96 16,898 285 1,055 4,025 14,213 0 525 525 13,688 1996/97 14,732 285 1,158 4,025 12,150 0 525 525 11,625 1997/98 14,922 285 1,185 4,025 12,368 0 525 525 11,842 1998/99 15,094 285 1,185 4,025 12,539 0 525 525 12,014 1999/00 15,291 285 1,185 4,025 12,736 0 525 525 12,211 2000/01 15,467 285 1,185 4,025 12,912 0 525 525 12,387 2001/02 15,569 285 1,185 4,025 13,014 0 525 525 12,489 2002/03 15,616 285 1,185 4,025 13,061 0 525 525 12,536 2003-1920 15,625 285 1,185 4,025 13,070 0 525 525 12,545

PV at 10% disc. 68,727 1,888 5,795 26,808 49,602 36,597 2,262 36,883 12,719

Economic rate of return = 12.54%

/a See Annex 2, Table 10 for details. /b See Annex 2, Table 11 for details. Ic Mission's estimation based on $17.5/ha. INDONESIA SECONDSWAMP RECLAMATION PROJECT ProposedCropping Calendar

JF | | M A M J AJ S I 0 N | D Ullhlc c IilililiHIIIIiIIIIIiIII A, EXTNDEDHOME LOT & FARMPLOTNllhIIIIIhNhh For First5-6 Years N lilil ulililil Paddvy Local Long TI llilill MaturationVairieties mII IINl lu IIlhIIlillIll lH M WlilIliluIHIItIIIH

B. tXTENDEDHOUSE LOT From Year 6-7 Onwards P NJ HI j Poaddy (HYV) & Secondary TrU lHIlI Food Crop (Corn) lh lf M M MWuljill IlililhjIllHH

C FARM PLOT C || | ||||||||| | Frorn Year 6-7 Onwords N ii IlIII Paddy(HYV)( ||||||||

IIIIIIIIIIIM |||||||||||||

D HOME LOI M H Food Crops _C_ _I_ C _U Coon, Soybeon. Croundnut. Vegetables. Sweet Potato. C P M M M H Cassava, etc.

Notohon~ C cultfvohon I Ionspionrfinrg M - Fead Marrorement N - Nurswy P- Ponting HCaest

(lot. 2rS32ffvr)

Average latintoli (mm) 296 Loltng River Catchment Arecr 201

mDosouSMICe rndas&biltvSt 1rVOf fteKarvaung Ag.,, Aj Vol IIJNedeCo frocoi,soll 1981 Woredbank - 25116 Seeondary Crops liffilililill PFdct| M A A 0 N D~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. INDONESIA SECONDSWAMP RECLAMATION PROJECT Farm Labor Requirement and Available Family Labor of a Typical Transmigrant Family With a 0.25 HAHouse Lot, 0.25 HA Extended House Lot and 1.75 HA Farm Plot at Full Development

Jan Feb Mar Apr | May Jun Jul Aug Sep Oct Nov Dec

Wet Season - Dry Season Wet Season

100- _ Available Family Labor During Peak Season (96)

60 - _n

40

4 -

Legend ~ Z Labor Required tor 2.0 HA Paddy (HW) l_Labor Rea,uiredtor 0.25House Lot ~~~Labor Required for 0.25 H-APalawita (Corn) [X X] LoborReq,uired for General Works WorldBonk-25163

* For supporting figures see Annex 2, Tables 7 and 8. ANNEX 3 -76 -

INDONESIA

SECOND SWAMP RECLAMATION PROJECT

Schedule of Early Events

Construction Target Date

1. Main civil works bids evaluated 08/15/84

2. Main ICB contracts awarded 11/01/84

3. Construction of primary systems started 04/01/85

4. Houselot and clearing contracts advertized 03/15/85

5. Housing contracts advertized 06/01/85

6. Farm plots land clearing contracts advertised 01/01/86

Consultants Engagements

1. Master Plan Studies (P3S) 09/15/84

2. Upgrading Studies (P3S) 09/15/84

3. Agricultural Research - First 2 experts (AARD) 09/15/84 INDONESIA SECONDSWAMP RECLAMATION PROJECT IMPLEMENTATIONBAR CHART

CY r 1985 1986 1987 1988 1989 1990 1991

Indonesian FY 84/85 1985/86 19866,87 1987/88 1988/89 | 199/90 1990/9i 1991/92

4 123436 I 8 34 86 79II0U I34 A 6? I9 1*9 14 I234 81 69311 TA I IS 3 II I0n it.r2 6ll78933AllIa 1a I I 8 4 S w4?

BASE CAMP CONSTRUCTION P13 ,P11 P15 P17 ~P19 CONSTRCTION PRIMAilIES,SECONDA9IES (Conract I) I1= _ K_ P _ Pi P14 pIQ- P12 p~3P, p Pi18-p5A,[ P7 (Cont4rot1) .- ~ ~ ~ P2 PTP8 PS P6

LAND CLEARING

liwssseots Villages (7.5000 ha)' 1 `8Y 2,6 4 7, 00 -11440 ~ ~ 4807 560- 9.780 i/Sm0 Farn/ Plots(11,5L0( hao

HOUSESCONSTRUCTION ( 11.500 Frm HOases& Vilogesy 1 _ 4,075; 9 _

SEILEMENT (11.500 Fam,iiesF 31(33 7

3 3 HAMLET1DRAINS (BO.0033 269 000 m38 5000 m 806,000 m

3 3 69 MXMmI 2 SC m 549 XXmn 823ED9AI 1.09(80O m 1 3 700 ml TERTLARIES(1 37M m ) I_ 'I _ a _ _ 3 3 9 2 FIELDBLJNDS (952.000,,i3) 4_rn 9 (TX,rn 38T(333n? - 571,WDr 761(Xt3M S C082rn

Note

All numrnoers atecumultve - End ot6 Year 6Br, fr,aincrsg 2 FormonIhly schedules seeAngsox 2.Table 9 3 Clearrlng at 1 ho/tomnly Fa cleanag oaremainder, C see Anoe 2, Table 3 & 4 Wald8n-25665 ' 1 WC.1dBu,*- 25665 m~~~~~ts - 78 -

ANNEX4

INDONESIA

SECONDSWAMP RECLAMATION PROJECT

List of References

(a) "Tidal Swamp Land Development project in Lampung South Sumatera and Central Kalimantan provinces, Vol. 1: General report: November 1981, NEDECO-EUROCONSULT

(b) "Tidal Swamp Land Development Project in Lampung South Sumatera and Central Kalimantan provinces, Vol. III. Feasibility study of the Karang Agung Area (40,000 ha), October 1981, NEDECO-EUROCONSULT

(c) "Agro Socio Economic Survey for the Tidal Swamp Land Development project in Delta Upang Area, Final Report" Bogor Agricultural University, March 1980.

(d) Nationwide Study on Coastal and Near Coastal swamp Land in Sumatera, Kalimantan and Irian Jaya Provinces, Inception Report, August 1982, NEDECO-EUROCONSULT/BIEC

(e) The Second Five Year Development plan (1974/75-1978/79): Tidal Swamp Reclamation. Ministry of Public Works and Power, Republic of Indonesia.

(f) Project Working Papers.

1. Agricultural Research and Development 2. Economic cost of settlers labor.

(g) "Development of Tidal Lands in South-East Sumatra," Report of a seminar held at FAO, Rome, November 1975.

(h) "Reprints on Cat clays," IRI Research Institute, One Rockefeller Plaza, New York, NY 10020 _79 - ANNEX 5 Page 1

INDONESIA

SECOND SWAMP RECLAMATION PROJECT

Stat,ementsof Expenditure

1. Statementsof expenditurewill be used for Bank disbursementfor following items:

Executing Disbursement Loan amount agency Item percentage $ million

Civil works

P3S Hamlet drains 60 2.0

DGFCA Paddy-fieldbunds 60 1.0

Training 100 0.2

2. Civil works contracts for hamlet drains will be procured through small contracts because of the nature of works. Contractsand payment evidence will be held by P3S ariddisbursement will be made against quarterly statements of expendituressubmitted to the Bank with P3S' certificationthat work has been properly carried out. MOT's subcoordinatorfor Bank financed projects will monitor and summarize all payments made against such contracts.

3. Constructionof paddy bunds will be carried out through DGFCA's assisted paddy field formationprogram. Work will be performedby settlers on rates to be mutually agreed upon by DGFCA, MOT, and the local administration (as already done to compensate settlers for land clearing work performedby them for contractorsworking on their fields). Disbursementwill be made against quarterly statementof expendituresubmitted to the Bank monitored and summarized by MOT's subcoordinatorfor Bank-financedprojects.

4. Disbursementfor travel and per diems for training will be disbursed to P3S (Project PreparationTraining) PLP and to PPW (O&M, on the job training) against quarterly statementsof expendituremonitored and summarized by MOT's subcoordinatorfor Bank-financedprojects.

5. All statements of expenditurewill be subject to auditing require- ments establishedfor the project, and supporting documentationwill be reviewed periodicallythrough Bank supervisionactivities. ANNEX 6 Page 1 - 80 -

INDONESIA

SECOND SWAMP RECLAMATION PROJECT

TECHNICAL ASSISTANCE, INVESTIGATION AND STUDIES

Summary Terms of Reference for Consultants

A. Technical Assistance

Technical Assistance in Implementation Management and Supervision

1. The objective is to train DOS/P3S field and HQ staff to effectively plan, manage and supervise the implementation of the hydraulic infrastructure in swamp reclamation projects. This will include the 30,000 ha physical development component of the SSRP as well as GOI projects under construction in South Sumatra. Additionally, consultants will assist DOS/P3S and MOT (PLP and DGSP) in supervising the implementation of development in the 30,000 ha project area.,

2. Consultants will assist DOS/P3S in developing and demonstrating cost effective construction procedures and in training staff on the job. Consul- tants will instruct and guide staff in scheduling implementation activities, with an objective of facilitating early settlement. They will also train and guide staff in quality and quantity controls and surveys, in reporting prog- ress and in preparing medium and short term work schedules.

3. In the 30,000 ha physical development of the SSRP consultants shall verify the quantity and quality of construction, progress payments, schedules, change orders assist in preparing as-built drawings and progress reports and MOT in improving supervision of land clearing and construction of houses.

4. The objective of this technical component is to assist in establishing and running in of an operation and maintenance unit in South Sumatra's provincial public works department (PPW). Consultants together with PPW staff will study and analyze O&M requirements of navigation primary and secondary drainage systems in reclaimed swamps in the province, prepare equipment specifications for procurement, and prepare a five year program to build up the necessary institution, equipment and support facilities which will serve present and planned projects in South Sumatra.

5. Consultants will prepare O&NMguides and instructions for routine maintenance of navigation canals, primary and secondary drains; secondary control stuctures, bridges and jetties, and tertiary control structures.

6. Consultants, together with PPW staff will prepare a detailed five year manpower training program and, in line with this program, will use - 81 - ANNEX 6 Page 2

facilities at the FSRP and the SSRP to train at least 15 PPW staff over a period of three years (five each year) in maintenance of government operated systems (navigation canals, primaries and secondaries) and in settlers operated systems (tertiaries), and implement and supervise training by PPW (trained) staff of settlers in tertiary O&M.

7. Consultants will train PPW staff in operating draglines to perform maintenance at the FSRP, SSRP and at three or four GOI project sites.

8. Personnel requirements and assignments are as follows:

Man-months Implementation Management Local T.A. Expatriate Engineers Technicans

Hydraulic, reclamation specialists 10 Construction engineer 20 Unallocated specialists 10

Construction Supervision (30,000 ha) Hydraulic engineers - 20 Construction engineers 20 80} 330 Unallocated specialists 6 32

Operation and Maintenance O&M engineer 28 Mechanical engineer 12

Total 106 132 330

Technical Assistance to PLP in implementation management and methods improvement of land clearing

9. The objective of the assistance to PLP is to train and upgrade HQ and field staff capability in improving the quality of land clearing through improved methods, procedures, optimal participation of settlers, planning, scheduling and supervision.

10. Consultants shall evaluate effectiveness of procedures presently employed at the FSRP and other GOI projects, initiate, supervise and assess trials of alternative methods (e.g. clearing half farm plots vs/felling and cutting trees from entire farm plots) assist in preparing specifications for clearing at the SSRP's 30,000 ha. - 82- -82- ~~~~~PageANNEXT 6

Category Man months Local

Land clearing specialist 36

Period of engagement: October 1985 - September 1988

Technical Assistance to MOT in final land preparation through community action

11. The objective is to assist and guide MOT group leaders assigned to new settlements (from inception till transfer of administrative responsibili- ties to local government) in organizing and implementing community action by settlers in finishing clearing farm plots /1 (the part which was not cleared by the project) and preparing them for cultivation. This activity which will be carried out at both the FSRP and the 30,000 ha of the SSRP, in collabora- tion with PLP's site staff, DGFCA's PPMs and PPLs, will explore alternative methods of cliearing and final land preparation for cultivation to determine the most effective one which settlers can execute with tools normally at their disposal. Beginning 1988, progress shall be reviewed and the program shall be continued, or revised, and extended to at least three other GOI project sites whose group leaders shall be trained at the Bank financed projects.

12. Man-month required and period of engagement are as follows:

Category Man months Local consultant

Community Organizers 108 /2

Period of engagement: April 1987 - March 1990

Investigations for drinking water

13. The objective of drinking water investigations is to find a safe, reliable, least cost solution for the supply of potable water to settlers in reclaimed swamps. The main thrust of investigations will be (a) search for potable ground water at the SSRP and at three other sites where acute drinking water problems exist, and (b) evaluation and assessment of alternative surface water treatmenitand storage methods, and (c) recommendations of least-cost water supply plans, including emergency supplies.

/1 During the first settlement year settlers will be remunerated for their participation in land clearing.

/2 Of which 36 MM for 1987-88; remaining 72 MM subject to review and approval beginning 1988. - 83 - ANNEX 6 Page 4

14. Ground water investigations will consist of geophysical investiga- tions, drilling, logging and itestpumping of about 10 test wells and full hydrologic analysis and interpretation. Location of test wells will be coor- dinated with settlement plans, aiming at a uniform geographic spread.

15. Surface water investigations will include a bacteriological assess- ment of river water shallow groundwater and other surface water resources and evaluation of alternative treiatmentand storage methods and recommendations of effective and reliable least-cost solutions. Alternatives to river water supply, when this is too saline for drinking purposes, will be investigated, assessed and least cost solutions recommended.

16. Personnel requirements are as follows:

Category Man months Local professionals Local technicians

Team Leader 18 Ground water hydrologist 12 Surface water hydrologist 12 Geologist/geophysicist 8 Water treatment specialist 3 Economist 3 Unallocated 15 140

Total 71 140

17. Other provisions: - Geophysical Investigations $ 55,000 - 10-6" test wells 75,000 - Mobilization & test pumping 15,000 - Biological Lab tests (sampling and testing) 6,000

Total $ 151,000

Casing and pumps $ 75,000

Period of engagement: April 1986 - September 1987.

Executing Agency: P3S ANNEX 6 -84 - Page 5

C. Studies

Master Plan Studies

18. The object of these studies is to prepare a development plan for two areas of about 100,000 ha each near Irian Jaya's coast (one in the "Bird's Head" section, the second between the Eilandea and Digul rivers) which have been designatedpotentially suitable for development in a nationwide study of coastal and near coastal areas./3 A second objective is to train DOS staff in project preparation,surveys, intepretation,analyses of alternativeplans, comprehensiveresource assessmentand planning.

19. Consultantswill prepare a resource survey which include soils, land use, water, fish and wildlife, and human resources,climatologic and hydro- logic data and will establish a network and execute hydrometric and water quality measurementsthroughout the study within 6 months from the date of commencement.

20. Soil surveys will be supported by auger holes at a density of 1/250 ha and complete profiles at a density of 1/1000 ha, physical and chemical analyses, depth and characteristicsof peat, incidenceand depth of potential acid sulfate soil and saline soils. Findings will be presented in soil grouping and classificationmaps to a scale of 1:50,000.

21. Supportedby 1:250,000and 1:100,000base maps, consultantswill carry out aerial photographyof the selected areas of about 100,000 ha each to a scale of 1:20,000 and altimetricand planimetricground surveys at distances not to exceed 4 km between survey lines. Based on aerial photos and ground surveys consultantwill prepare 1:20,000 topo maps with CI of 25 cm in flat areas.

22. Based on the resource surveys and topo maps, consultantswill pre- pare a resource utilizationplan for development of the area for settlement and productiveemployment. This plan will inter alia include: food and tree crops, sago palms, smallholdersand estate type developmentwith particular attention to optimal timber exploitationand fishery development.

23. Physical developmentplans of preferred alternativeswill be drawn to a scale of 1:20,000accompanied by indicativecosts and benefits.

24. Consultantswill train counterpartpersonnel in surveys, analyses and interpretationand planning.

/3 NEDECO, 1983. ANNEX 6 - 85 - Page 6

25. Personnel requirementsare as follows:

Man-months Local Local ExpatriateProfessionals Technicians

1. Team leader 18 18 2. Soil scientist 12 24 3. Hydrologist 8 16 4. Agriculturalist 6 12 5. Sociologist 2 14 6. Economist 4 12 7. Fishery expert 4 4 8. Forestry expert 4 4 9. Physical planner 6 12 10. Topographers 2 10 11. Water Supply Specialist 3 3 12. Geologists 3 8 13. HydraulicEngineers, Reclamation specialists 14 28 14. Unallocated 10 17 15. Technicians 350

Total 95 164 350

Period of engagement: December 1984 - March 1986 Executing Agency : DOS

Feasibility Studies and Detail Design: Upgrading of existing developments

26. The objective of these studies and design is to continue preliminary investigationscarried out under the FSRP of determiningneeds of upgrading infrastructurein government sponsored and spontaneousswamp developmentsin Sumatra and Kalimantan,by feasibilitystudies of upgrading about 35,000 ha of existing developments.

27. These studies, to be carried out by P3S and consultantswill complementFSRP's identificationstudies examining the viability of physical improvementsin canals, existing structures (bridges, jetties) and in adding, where required,water control structures to protect soils and afford better water management.

28. Upon concluding feasibilitystudies, for about 35,000 ha, and their review by GOI and the Bank, detailed implementationplans cost estimates and specificationsand contract documents will be prepared for selected,high priority upgradingwork to serve about 15,000 ha.

29. Upon review of plans and contract documents by the Bank, consultants will assist P3S in supervising the constructionof upgrading for an estimated area of 5,000 ha. - 86 - ANNEX 6 Page 7

30. Personnel requirements are as follows:

Feasibility studies and detail design

Man-months Local Local Expatriate Professionals Technicians

Team Leadier Hydraulic/drainage engineer 16 32 Agronomist. 6 12 Soil experts 3 12 Hydrologist 4 16 Economist 4 16 Design engineer 24 Sociologist 4 8 Topographer - 20 Unallocated 8 16

Subtotal 45 156 200

Period of engagement: December 1984 - August 1986

Construction supervision Construction engineer 12 Surveyors and Technicians 250

Subtotal 0 12 250

Total 45 168 450

Period of engagement: April 1987 - March 1988

Executing Agency : DOS

Monitoring and Evaluation

31. The objective of this activity is to monitor and evaluate develop- ments of reclaimed swamps as well as the environmental impact of large recla- mation schemes. The activity will focus on the agricultural development of the SSRP as well as that of three other, GOI sponsored, schemes to be selected during the first two working months; on physical (and chemical) changes in the main resources (land and water) and on physical and chemical changes in sur- rounding rivers.

32. Continuous hydrometric, and monthly physical, chemical and bacterio- logical data will be collected in the Calik and Lalang rives in South Sumatra and the Baritos and Kapuan rivers in Kalimantan and analyzed. Also, in these rivers, data will be collected on fish (and shrimp) and analyzed for intensi- fication of fisheries. ANNEX 6 Page 8

33. In the interior of the schemes data will be collected on (i) crop- ping patterns and use and yields, (ii) labor availability, (iii) pests, (iv) changes in soil (and water) chemistry (v) subsidence and (vi) salinity intrusion (surface, subsurface water) and its effects on soil and corps.

34. Progress will be periodically reviewed and the program reoriented or intensified in part, as required. Foreign consultants will lead start up, and local consultants will lead the study through completion.

35. Personnel requirements for this actiity are as follows:

Man-months MOT DOS DGFCA 1 2 3 1 2 3 1 2 3

Team leader 12 20 12 24 - - - Soil scientist 24 36 Hydrologist 12 12 Reclamation expert 8 8 Agronomist 4 12 Sociologist 4 12 Hydraulicengineer - 12 Unallocated 32 6 56 32 80

Total 16 32 32 38 56 56 28 80 80

Legend: 1. Expatriates. 2. Local professionals. 3. Local technicians.

Period of engagement: MOT: June 1985 - March 1990 DOS, DGFCA: February 1986 - March 1990

D. Agricultural Research

36. The object of services to be provided under this component is to assist AARD (Agency of Agricultural Research and Development) in continuing and expanding its swamp oriented research and development program based on the Banjarmasin Research Institute for Food Crops and carried out Banjarmasin experimental farms at Tamban Luar and Alabio, Kalimantan and Upang Delta, South Sumatra, during a 3 year period. AARD staff, who are presently engaged in various advanced degree training programs, will assume leading responsibil- ities for research activities as they return to active duty.

37. Four expatriate consultants will be engaged for a period of two years; two from September 1984 to August 1986 and two from September 1985 to August 1987, to assist research work and provide on-the-job training for AARD staff assigned to the swamp research program. The consultants will be (a) an agricultural economist specialized in farming systems research who will coor- ANNEX 6 - 88 - Page 9

dinate foreign consultants research activities; (b) a plant breeder, specia- lizing in rice breeding and varietal testing; (c) a soil scientistspecializ- ing in soil and plant nutrition research in coastal swamp areas; (d) an ento- mologist and/or rodent control specialist for research on integratedpest management in coastal swamps.

38. Local specialists,will be engaged for a period of three years from September 1985 to September 1987 to provide technicalassistance to AARD in the implementationof the proposed swamp research components,pending the appointmentof newly qualified AARD staff to the program. Disciplineswould include agriculturaleconomics, biology, agronomy, soil science, agricultural engineering,hydrology, plant breeding, rural sociology,farm management, fisheries,animal science, and horticulture. Consultantswould be based at research institutes and experimentalfarms in South Sumatra and Central/South Kalimantan. 89 -ANNEX 6 89-Page10

39. Personnel requirements:

Man-months Expatriate Local consultants Duration of Activity or Category Consultants Seniors services

1. Farming systems Senior agronomist 24 9/84-8/86 Agronomist 72 /a 9/85-8/88

2. Plant protection Entomologist 24 9/84-8/86 Entomologist 36 9/85-8/88

3. Water and soil management Soil scientist 24 9/85-8/87 Agronomist 36 9/85-8/88

4. Soil and plant nutrition Agronomist 36 9/85-8/88

5. Varietal testing Plant breeder 24 9/85-8/87 Agronomist/plant breeder- 36 9/85-8/88

6. Agricultural Economics and Sociology Agric. Economist/Sociologist - 36 9/85-8/88

7. Aquaculture Fishery specialist (milkfish, shrimp) 36 9/85-8/88

8. Animal Husbandry Duck husbandry and nutrition specialist 36 9/85-8/88

9. Industrial and Estate Crops Coconut specialist 36 9/85-8/87

Total MM 96 360

/a 2 x 36 ANNEX 7 Page 1

-90-

INDONESIA SECONDSWAMP RECLAMATION PROJECT P3SOrganization

Director General Water Resources Development

P3S- Tidal Swamps RemationR|I Project Unil

Project Manager ______Project Assistant Deputy Project Group Manager

Chief of Staff

Deputy Chief of Staff

Staff StaffpStaffStaff i o f f Staff r v Staffjl Staff |Assistant Assistant Staff Staff Staff Staff |Treasurer | Assistant Assistant | Assistant Assistant Assistant Assistant Sumatra Kalimaton IVV VI VII

Sub-Project I Sub-Project Sub-Project Sub-Project Central &oWest Riau L Jambi South Sumatra South Kalimantan CKalimantan

World Bank-25621 -91- ANNEX7 PaRe 2

INDONESIA SECONDSWAMP RECLAMATION PROJECT P3S Provincial Office Organization

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Technical Superv Technical Site Mane Affairs Affairs

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