Report No. 595-IND FILECOPY Appraisalof IrrigationProject VI Indonesia Public Disclosure Authorized

March 6, 1975

East Asia and Pacific Projects Department

Not for PublicUse Public Disclosure Authorized Public Disclosure Authorized

Document of the International Bank for Reconstruction and Development Public Disclosure Authorized International Development Association

This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. CURRENCYEQUIVALENTS

US$1.00 = Rupiahs (Rp) 415 Rp 100 - US$0.241 Rp 1 million - US$2,409.64

WEIGHTSAND MEASURES - METRIC SYSTEM'

1 millimeter (mm) - 0.039 inches 1 meter (m) = 39.37 inches 1 kilometer (km) = 0.62 miles 2 1 square kilometer (km ) - 0.386 square miles 1 hectare (ha) = 2.47 acres 1 cubic meter (i 3 ) = 35.31 cubic 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

ABBREVIATIONS

BIMAS - A farm input package and credit program BRI - People's Bank of Indonesia (Bank Rakyat Indonesia) CRIA - The Central Research Institute for Agriculture DGWRD - Directorate General of Water ResourcesDevelopment GOI - The Government of Indonesia HYV - High yielding variety INMAS - A program to encourageuse of agriculturalinputs outside BIMAS IPEDA - Land tax based on potentialproductivity INPRES - A rural works program MOA - The Ministry of Agriculture 0 & M - Operation and Maintenance PROSIDA - The organizationwithin DGWRD responsible for World Bank Group IrrigationRehabilitation Projects SAE - Agro-EconomicSurvey Institute.

CONVERSIONFACTORS FOR RICE

1 ton "dry stalk paddy" - 800 kg paddy ("paddy gabah") = 500 kg milled rice 1 ton paddy (gabah) - 630 kg milled rice

INDONESIA FISCAL YEAR

April 1 - March 31 INDONESIA

APPRAISAL OF

IRRIGATION PROJECT VI

TABLE OF CONTENTS

Page No.

SUMMARY AND CONCLUSIONS ...... i - ii

I. INTRODUCTION ......

II. BACKGROUND ...... 1

The Economy ...... 1 Agriculture ...... 2 Project Formulation ...... 2

III. THE PROJECT AREA ...... 4

General ...... 4 Climate ...... 4 Soils and Topography ...... 4 Agricultural Production ...... 5 Population, Farm Size and Land Tenure ...... 6 Agricultural Support Programs ...... 6 Storage, Processing and Marketing ...... 7 Transportation ...... 7

IV. THE PROJECT ...... 7

Project Works ...... 8 Consulting Services ...... 10 Feasibility Studies ...... 10 Water Supply, Demand and Quality ...... 10 Implementation Schedule . . 11 Cost Estimates ...... 11 Financing ...... 12 Procurement ...... 12 Disbursements ...... 13 Accounts and Audits ...... 13 Environmental Effects ...... 14 -2-

Page No.

V. ORGANIZATION AND MANAGEMENT ...... 14

Organization ...... i ...... 14 Technical Assistance ...... 15 Training ...... 16 Agricultural Supporting Services ...... **. 16 Cimanuk Soil Conservation Program ...... 17 Groundwater Investigation ...... 17 Monitoring Benefits ...... 17 Operation and Maintenance ...... 17 Recovery of Costs ...... 18

VI. PRODUCTION, MARKET PROSPECTS, PRICES AND FARM INCOME ...... 19

Production ...... 19 Market Prospects and Prices ...... 19 Farm Income ...... 20

VII. BENEFITS AND JUSTIFICATION ...... 22

VIII. RECOMMENDATIONS ...... 22

ANNEXES

1. Agricultural Production 2. Agricultural Supporting Services 3. The Project Works 4. Consulting Services and Technical Assistance 5. Water Supply and Requirements 6. Cost Estimates 7. Schedule of Expenditures and Disbursements 8. Training 9. Crop and Farm Budgets 10. Economic Analysis

CHARTS

Opportunity Cost Curve for Farm Labor Chart 9303 'Water Resources Organization - Chart 8963 PROSIDA Management Organization - Chart 8965 PROSIDA Sub-project Organization - Chart 8964 Design and Construction Schedule - Cirebon - Chart 8960 Design and Construction Schedule - Rentang - Chart 8961 -3-

Design and Construction Schedule - Sampean Baru - Chart 8962 Cropping Pattern and Water Requirements- Sampean Baru - Chart 8966

MAPS

No. Location Map 3627R1 Irrigation Project VI 10867 Sampean Baru Irrigation System 11197

INDONESIA

APPRAISAL OF IRRIGATION PROJECT VI

SUMMARY AND CONCLUSIONS

i. The proposed project would continue the Bank's program of assistance to irrigated agriculture in Indonesia. The project's main objectivesare to increase paddy productionby rehabilitatingexisting irrigationsystems, to bring a rainfed area under irrigation,to increase rural incomes and improve institutionsby providing technical assistanceand training. The project is on the priority list of the Government'sSecond Five Year Plan and at least 80% of the project beneficiaries are in the lowest 40% income group.

ii. There are three main components in the proposed project: the re- habilitation of the existing irrigationsystems in Cirebon area (89,000 ha); a new barrage and improved drainage facilities (33,000ha) in Rentang Irri- gation System (92,000 ha), which was rehabilitated under Credit 127-IND; and completion of the irrigation system in Sampean Baru project area (9,800 ha). Rentang and Cirebon are located in West Java, while Sampean Baru is in East Java. In addition to these works the project would include feasibility studies for future irrigation projects in Madiun and Cirebon areas; a soil erosion control program; training and technical assistancein agriculture and engineering; agro-economic monitoring studies for irrigation areas; and financing of final costs of groundwater investigations,started under Credit 289-IND. Camps, offices, an Agricultural Development Center, Rural Extension Centers and operators houses are included, together with vehicles, equipment, communications and consulting services. iii. The estimated cost of the proposed project is US$165 million. The Bank proposes to finance the foreign exchange component,which is estimated to be US$65 million or about 40% of total cost. iv. Rentang Barrage (US$13 million) and equipment and vehicles (US$3.5 million) would be awarded after internationalcompetitive bidding in accord- ance with Bank guidelines. Contracts for the other civil works (US$54 mil- lion) which are widely scattered in space and time would be awarded after local advertising. Consultingservices, mapping, technicalassistance and training would cost US$9.5 million. Contingenciesamount to US$69 million, of which US$51 million are for anticipated price increases. Construction is scheduled to take six years for all elements of the project. PROSIDA, a special unit within the DirectorateGeneral of Water Resources Development, which is successfully executing three IDA irrigation projects, would be responsible for project implementation and the Ministry of Agriculture would he responsible for administrating the agricultural support program un(dera special directorate. - ii - v. The economic rate of return was evaluated for each component and is 38% for the Cirebon irrigation rehabilitation; 44% for the Rentang Barrage and drainage facilities; and 18% for the Sampean Baru irrigation system. Some 365,000 farm families, made up of about 60% owners and 40% tenants would benefit from the project. Following completion of the project, farm incomes for average farmers on 0.5 ha would increase from US$65-125 to US$150-290, depending on whether they are owners or sharecroppers. For Sampean Baru the farm income of average owner farmers on 0.5 ha would increase from US$30 to US$300. vi. The five on-going irrigation projects, being financed under IDA Credits are progressing relativelywell, but have been affected by inflation, causing delays in civil works and hence in project completion. A recent detailed review, however, indicated that satisfactoryrates of return would be obtained taking into account delays, higher costs and benefits. vii. The proposed project is suitable for a Bank loan of US$65 million for a term of 30 years, including six year grace. The borrower would be the Republic of Indonesia. I. INTRODUCTION

1.01 The Government of Indonesia (GOI) has requested a Bank Loan to assist in financing the rehabilitationof the Cirebon Irrigation Systems; constructionof additional facilities for the Rentang Irrigation System, which would complement works in the area financed under Credit 127-IND; and constructionof the Sampean Baru Irrigation System in East Java. This would be the sixth Bank Group operation for promoting irrigation development in Indonesia; four of the preceding projects being for rehabilitationof existing systems and the fifth for the Jatiluhur Irrigation Extension Project (Map 3627R1).

1.02 Works on the First Irrigation RehabilitationProject are complete, except for drainage improvements,and disbursementsare almost complete. The Second Project - rehabilitationof Jatiluhur Irrigation system - has been delayed by about two years, initially, due to problems with tender documents and subsequently due to failure to replace the Authority's President-Director. These problems have now been solved, all contracts have been let and a President-Directorhas been appointed. Disbursementshave been on schedule for the last year. The Third Project is well advanced and will soon be complete, except for drainage works in some areas. Disbursements,initially slow, have been on schedule for two years. In the Fourth Project, after a slow start, large numbers of civil works contracts are being let and progress is picking up. Disbursementsare on schedule. The Fifth Project is about to commence.

1.03 This report is based on the findings of an appraisal mission, which visited Indonesia in June 1974, comprising Messrs. H.J. Tennent, C. Koch- Weser (Bank), R. Bloor, P. Judd and P.T. Reddy (Consultants). Messrs. R. Harris and S. Okabe also contributed to this report. Feasibility studies were prepared for the Cirebon systems by a joint consulting venture of NEDECO/SMEC (Netherlands/Australia),for the Sampean Baru project by a joint venture of Harza/AHT (USA/Germany),both financed under Credit 289-IND, and for the Rentang System by PROSIDA.

II. BACKGROUND

The Economy

2.01 March 31, 1974, marked the end of Pelita I, the Indonesian First Five-Year Plan. During the period 1968-1972, real annual economic growth was close to 7% and during 1973 satisfactorygrowth was indicated. Domestic savings and investmentsincreased considerably, thus providing the basis for continued future economic growth. This occured despite a drought in the second half of 1972 which led to a setback in food production and a steep increase in prices. At the beginning of 1974, inflation,which had previously been under control, reached a rate of 40% per annum. Steep increases in both import and export prices, a rapid physical expansion of production in the oil and forestry sectors, a quick growth in direct foreign investment and a large -2-

inflow of short-term credit, all contributed to this. Most noteworthy for future developmentprospects has been the rapid increase in oil production and prices. With a daily production of 1.5 million barrels, Indonesia is already the eighth largest oil exporting nation in the world. The price of Indonesianoil, which was US$3.73 per barrel in September 1973, reached US$11.70 per barrel by April 1974. Gross production is expected to exceed US$5 billion in 1974/75, of which US$3 billion will be the net contribution to the balance of payments and the Government'srevenues. The important problems facing the economy during the Second Five-Year Plan (Pelita II), 1974/75 to 1978/79, are the equitable distributionof the benefits from oil and other developments among the people, the expansion of food production, and the control of inflation.

Agriculture

2.02 Agriculture, which grew at nearly 4% per annum over the period 1968-72, accounts for nearly 50% of GNP, about 60% of employment and almost all non-petroleum exports. The major food crops are rice, maize, cassava, sweet potatoes, soyabeans and groundnuts. They provide 85% of the total calorie and 80% of the total protein intake of the population. Rice, the staple food, amounts to nearly one-third of total agriculturalproduction by value and 12% of GNP. The Government's foremost objective in food crop production is to reach self-sufficiency in rice as soon as possible. Under Pelita I, priority was given to increasing rice production, which had stag- nated for more than a decade. Measures taken included rehabilitationof existing irrigation systems, price support programs, the provision of improved seed, fertilizer, pesticidesand credit, and substantial allocationsof funds to extension and research. These policies contributed to the increase in rice production from 10.8 million tons of milled rice in 1968 to 13.4 million tons in 1973, a total increase of 2.6 million tons, or an average annual in- crease of about 5%. Taking into account population growth, however, the increase in domestic rice supply was only about 2.4% per capita over the First Plan period and the country had to resort to rice imports of between 0.5 and 1.5 million tons per year. The 1972 drought had a severe impact on rice output, highlighting the vulnerabilityof the Indonesian rice economy to weather fluctuations.

Project Formulation

2.03 Due to long years of neglect, most of the 1.5 million ha of government maintained irrigation systems in Java were in need of rehabili- tation by the mid 1960's. Rehabilitationworks on about 1.0 million ha were started during Pelita I, with about 800,000 ha being carried out with IDA assistance. The work is scheduled to be completed in this next five years. With limited opportunities for increased rice production under rainfed conditions in Java, Indonesia must continue its intensive program of irrigation development if it is to increase its rice output in step with population growth. Outstanding works include two large systems covering 220,000 ha and the balance is made up of small systems. GOI has asked for Bank assistance -3

for the large systems - Cirebon and Madiun. In addition, GOI plans to con- struct 550,000 ha of new small systems and about 200,000 ha of large systems, mainly in the Outer Islands during Pelita II (The Second Five Year Plan). The proposed project is thus in line with the Government's overall development plan and follows the recommendationsof the Bank's Irrigation Program Survey mission of March 1974. It is consistent with GOI's efforts to help the rural poor. Formulation of the project follows closely the approach developed on the previous IDA financed irrigation projects in Indonesia with one major difference, namely, the method of constructingtertiary and quaternary canals and drains. On the first four rehabilitationprojects, GOI constructed the first 5Om of tertiary canals and it was left to the farmers to complete the works. Actual constructionof the works by the farmers to date has been very slow, largely because the farmers do not have the maps or technical knowledge to set out the canal systems to correct lines and levels, nor design ex- perience to locate and build tertiary control structures. At the same time, benefits from these works are substantial and, for this reason, construction of the tertiary and quaternary canals was undertaken as a cooperative effort between the executing agency and the farmers on the most recent IDA irrigation project in Indonesia (Credit 514-IND). A similar approach (para 4.04) would be adopted under this project for the Cirebon, Rentang and Sampean Baru systems.

2.04 Following completion of project works, dry season irrigation in the Cirebon and Rentang areas would still be limited by the unregulated flow of the rivers and streams in these areas. There is, however, a proposal to construct the Jatigede Dam, a multi-purpose earth and rock-fill dam on the Cimanuk river which, after completion of its first phase, would provide assured dry season irrigation of some 85,000 ha in the Rentang area and 30,000 ha in the Cirebon area. In the second and third phases hydropower of 400 mw and 800 mw, respectively, would be provided by means of diversions from the Cilutung and Cipeles rivers into the Jatigede reservoir (Map 10867). Feasibility studies for Jatigede Dam were completed in early 1974 by a joint venture of NEDECO (Holland) and SMEC (Australia), with funds provided under Credit 289-IND. A preliminary review of these studies conducted during appraisal of this project indicated that the economic rate of return on Jatigede Dam would be in the range of 20%, even if the dam is constructed as a single purpose irrigation project. Based on these findings the Aus- tralian Government is finalizing arrangements for a technical assistance grant of about US$7.5 million to cover the foreign exchange costs of pre- liminary works at the dam site and consulting services for detailed designs and the preparation of tender documents. GOI intends to request Bank as- sistance for constructionof Jatigede Dam in FY77, and has agreed to a review by the Bank of all aspects of the consultant'swork. GOI will prepare a plan for settlement of the people, who will be displaced by the Jatigede reservoir before Bank appraisal of this project. -4-

III. THE PROJECT AREA

General

3.01 Cirebon and Rentang projects are two adjacent irrigation systems located on the north coast of Java, about 220 km east of Jakarta (Map 10867). The Cirebon project comprises 56 irrigation systems varying in size between 100 and 7,900 ha and covering a total area of 89,000 ha. All systems are run-of-the-rivergravity systems served by some 117 headworks and weirs which raise river levels and direct water into canal systems. Most structures, all gates and hoists, all drains, canals and their banks have deterioratedbadly over the last 20 years. The Rentang system is to the east of the Jatiluhur project and the area is bisected by the Cimanuk river. About 92,000 ha in the Rentang area are irrigated from a 60-year old barrage on the Cimanuk river, and by three primary canals. Rehabilitationof canals and structures in the area began in 1969 under Credit 127-IND and, with the exception of some additional drainage which is still required on about 30,000 ha along the coast, is now completed. There was no provision, however, under Credit 127-IND for constructionof a new barrage which is urgently needed as the existing structure requires frequent and expensive repair work. Feasibility studies carried out by PROSIDA and their consultantshave shown that it would be more economical to construct a new barrage than to continue maintaining the existing structure.

3.02 Constructionof the Sampean Baru irrigation system (9,800 ha), in East Java, (Map 11197) was commenced in 1942 but was abandoned because of the war. Completed works include a weir, intake structure and 9 km of primary canal. These works have, however, seriously deterioratedover the years and will require rehabilitationbefore they can be integrated into the new irrigation system. Sampean Baru is surrounded by the existing irrigation systems, collectively known as Pekalen-Sampean, which are being rehabilitated under Credit 289-IND.

Climate

3.03 The climate is tropical and monsoonal. Temperaturesvary only a few degrees around the annual average of 26'C. Day lengths are almost con- stant throughout the year. The rainy season, during which 70% of rainfall occurs, is from November to May (northwestmonsoon), and the dry season from about June to October (southeast monsoon). Annual precipitation in the Cirebon/Rentangproject area is 1,500 to 2,000 mm and in Sampean Baru project area from 1,200 to 1,500 mm. Annex 1 gives climatic data.

Soils and Topography

3.04 Soils in all the project areas are alluvial and of volcanic origin and generally suitable for paddy cultivation. They respond positively to nitrogenous and phosphatic fertilizers. The topography of the Cirebon area - 5 - is largely flat, except around Gunong Ciremai (an active volcano), where it becomes undulating and broken by numerous rivers and streams. The Rentang area is flat and contains the Cimanuk river delta where there are low coastal areas which have drainage problems. In each area lowland soils are also suitable for sugar crops and in the upland areas with lighter soils a variety of secondary crops are grown. Sampean Baru has a flat terrain sloping towards the coast, but it is broken by many streams flowing in fairly deep ravines providing natural drainage. Soils are generally suitable for paddy cultivation and, in the upland areas, cotton and other secondary crops are grown. In the east, the land is more undulating and there are areas requiring land levelling for paddy cultivation.

Agricultural Production

3.05 Paddy, which is the main crop, is grown throughout the Cirebon project area in the wet season. With run-of-the-riverirrigation it is also grown wherever there is sufficient water during the dry season. Both local varieties and high-yielding varieties (HYV) are planted but yields are low, ranging between 1.5 and 2.8 ton/ha (gabah). 1/ The overall annual cropping intensity is about 140%, with about 7,000 ha of sugarcane planted as an estate crop on land rented from small farmers, yielding about 90 ton/ha. In the dry season, 18,000 ha of secondary crops are planted on higher ground with lighter soils; they consist mainly of soyabeans and corn and the combined annual production is 14,000 tons. The annual production of paddy is 216,000 tons, of which 190,000 tons is the wet season crop. Annual sugarcane pro- duction is 630,000 tons.

3.06 The Rentang irrigation system is one of four systems being rehabilitated under Credit 127-IND and all works included under that Credit have been completed in Rentang. Paddy is the main wet season crop. Yields presently vary from 1.7 to 3.0 ton/ha, depending on quality of water supply, drainage conditions and variety planted. These yield levels are highest where rehabilitation has been completed and, after completion of rehabilitation, are expected to reach 3.5 ton/ha in the best areas. In the dry season, soyabeans and paddy are planted. The total annual production of paddy for this area is 281,000 tons, of which about 211,000 tons are produced in the wet season. The secondary crops, including sugarcane, produce about 46,000 tons per year. Large areas are planted during the dry season, but crops are frequently lost due to failure of water supply, and cropping intensitybased on harvested area is only 130%.

3.07 In Sampean Baru, rainfed paddy and, to a lesser extent, corn and cassava are the main wet season crops. In the dry season much of the area is left fallow. Yields are low, and paddy averages only 1.5 ton/ha. The total annual production of paddy in this area is 3,000 tons. Secondary crop production totals 7,000 tons, which includes 400 tons of estate cotton.

1/ Rough grain paddy - the unit used throughout this report. -6-

Cropping intensity is only 90%. Further details of present agricultural production in the project areas are presented in Annex 1.

Population, Farm Size and Land Tenure

3.08 Cirebon and Indramayu,with populations of about 180,000 and 40,000, respectively, are the major towns in the Cirebon/Rentangareas. The rest of the population (about 3,000,000 in Cirebon and 1,200,000 in Rentang districts) is mostly rural. The population served by the project is estimated to be about 2.2 million. There are some 320,000 families, averaging nearly seven members per family. According to the 1963 census data, more than 50% of holdings in these areas range between 0.1 and 0.5 ha and less than 10% of holdings had more than 1.5 ha. Between 30% and 40% of the rural population are landless laborers, roughly 50% are owner-operatorsand between 10 and 20% are tenants. There is considerablevariation in land tenure pattern throughout the areas. The tenure system of owner-sharecroppersis usually based on a 50-50 sharing of the crop, with harvesting and cash input expenses being shared equally, the sharecropperproviding all labor and the owner paying the land tax.

3.09 Population in the Sampean Baru project area is about 280,000. The number of families is estimated at 45,000. A pilot survey of the area indicates that approximately 50% of the farms, accounting for about 20% of the total land, are under 1.0 ha. In contrast, about 18% of the farms are larger than 2 ha but account for 58% of the land. However, most of the larger holdings consist of very poor upland fields. The average farm is 1.4 ha, consisting of 0.4 ha in lowland that would be irrigated under the project, and 1.0 ha in upland. About 20% of the upland is not cultivated. More than 90% of the farms are owner-operated. Most rental agreements provide for sharing the crop equally, with the land owner paying the land tax, but the tenant paying all operating costs. The proportion of landless laborers in the area is high, but no data on actual numbers are available. Underemploymentis widespread, which is reflected in extremely low wage levels for hired farm labor (about 50% of the wage level in Cirebon/Rentang).

AgriculturalSupport Programs

3.10 The agriculturalsupport program is currently arranged through the BIMAS 1/ program which only covers about 40% of Cirebon and Rentang areas and little of Sampean Baru. This program provides extension, improved seed, fertilizer,pesticides and credit and is very effective where it operates. Most inputs supplied under the program are subsidized by GOI. The Provincial Government extension staff is small and trained personnel are insufficient to meet the farmers' needs. Details of the existing agriculturalservices and proposals for expansion under the project are presented in Annex 2.

1/ A farm input and credit program. -7-

Storage, Processing and Marketing

3.11 There are usually paddy barns in each village which provide temporary storage but losses are high due to rodents. Farmers retain most of their paddy production for home consumptionand, at present, only about 20% of the crop is sold to middlemen or to the government marketing control agency (BULOG). BULOG purchases rice at a floor price established on the basis of the cost of fertilizer. Following the harvest of the 1974 wet season crop the floor price was Rp 40.8 (US$0.10)per kg of paddy. In times of poor harvests some farmers can obtain prices above the floor price by selling to the private sector. Many indebted farmers, however, are forced to sell or repay paddy for production costs at lower than floor prices, particulary in Sampean Baru. Surplus secondary crops are sold to middlemen. Estate sugar and cotton are marketed by the State Sugar and Cotton Industries.

3.12 Rice mills and hullers in the Cirebon and Rentang areas usually have some storage capacity and almost all have sun-drying floors. There are 33 large mills and about 400 hullers which have excess milling capacity. In Sampean Baru, there are 18 rice hullers in the area which are operated at 50 to 75% of their full capacity.

Transportation

3.13 Farm-to-market transportation is largely by hand-carrying, bi- cycles or animal drawn carts. The rural road network is adequate but needs rehabilitation. In the wet season, many of the roads are impassable, and due to poor maintenance, remain so for many months. The INPRES 1/ pro- gram includes upgrading of some of these roads, but is insufficient to cover the whole network. Each project area is served by main highways and railways, which provide them with good transportationlinks to Jakarta, in the case of Cirebon/Rentang,and Surabaya, in the case of Sampean Baru.

IV. THE PROJECT

4.01 The proposed project (Map 3627R1) would rehabilitate existing irrigation and drainage networks serving 89,000 ha in the Cirebon area; construct a new barrage on the Cimanuk river to improve water delivery to some 92,000 ha in the Rentang scheme, where the irrigation network was rehabilitatedwith IDA assistance under Credit 127-IND; provide drainage facilities for some 30,000 ha of coastal land in Rentang, which were not financed under Credit 127-IND (Map 10867); and construct a new irrigation system to serve 9,800 ha, in Sampean Baru (Map 11197),which is surrounded by the Pekalen-Sampeanarea, being rehabilitatedunder Credit 289-IND.

1/ Rural Works Program. -8-

Project Works

4.02 The main componentsof the project, details of which are given in Annex 3, are as follows:

Cirebon Systems

(a) rehabilitationof 117 existing headworks and weirs;

(b) reconstructionof 450 km of primary and secondary canals;

(c) constructionof tertiary canal and drainage systems with related quaternary canals and structures, throughout the area;

(d) improvementof about 200 km of existing drains and the constructionof 40 km of new ones with related flood protection works;

(e) 20 pilot projects of about 100 ha each to demonstrate the benefits of on-farm development;

(f) upgrading of 305 km of rural roads and constructionof 55 km of inspectionroads and paths along the irrigation canals; and

(g) constructionof office buildings, stores, houses for project management and operations staff, an agricultural development center and six rural extension centers.

Rentang System

(a) construction of new reinforced concrete barrage and irrigation intakes on the Cimanuk river;

(b) constructionof tertiary canal systems with related quaternary canals and structures throughout the project area;

(c) improvementof about 200 km of existing drains, and constructionof about 60 km of new ones to serve a low- lying coastal area of about 30,000 ha;

(d) 20 pilot projects of about 100 ha each to demonstrate the benefit of on-farm development;and

(e) constructionof six rural extension centres.

Sampean Baru

(a) remodeling of the existing weir and intake structure; - 9 -

(b) construction of an earth fill closure dam on the Sampean river;

(c) construction of 35 km of new unlined primary canal and structures, along with rehabilitation of the 9 km of existing canal and construction of about 120 km of secondary canals and related structures;

(d) land leveling of about 2,000 ha;

(e) construction of operator's houses;

(f) construction of tertiary canal and drainage systems with related quaternary canals and structures throughout the area;

(g) construction of 100 km of rural roads and inspection roads and paths; and

(h) two 100 ha pilot projects to demonstrate on-farm development, and one 100 ha pumping demonstration pilot scheme for high value crops on uplands.

All above works would be carried out with assistance from consulting firms and, where appropriate, with individual specialists.

4.03 Under the project feasibility studies would be undertaken for re- habilitation of 130,000 ha in Madiun Irrigation Project as well as for dry season irrigation on about 30,000 ha of Cirebon. The project also provides for: completion of ongoing groundwater investigations in the Madiun/Solo area; design of North Sadang extension (6,500 ha); mapping; a soil conserva- tion program in the Cimanuk river catchment area; and supply of vehicles, equipment and communications for construction, operation and agricultural services. In addition, a program of supporting agriculture services would be introduced in the two large project areas; training and technical assis- tance would be provided; and a program for monitoring project benefits in all rehabilitated areas would be undertaken.

4.04 The tertiary canals and drains, related quaternary canals and control structures would be designed by PROSID)A which, together with local agencies, would guide and direct farmers in constructing these canals. The cost of engineering, materials, structures, the first 50m of each tertiary and, wherever necessary, right-of-way acquisition would be borne by GOI. Farmers in the project areas would be organizedI by the village headmen, under PROSIDA's supervision, to construct these canals. GOI would provide farmers with a token wage or other compensation. Completion of these minor works would not only enable paddy yields to be increased by about 1 ton/ha, but would allow dry season cropping to be increased and multiple cropping to be developed. Assurances were obtained that, wherever farmers failed to construct the tertiary and quaternary canals within twelve months after PROSIDA has completed all of the engineering work, including the construction of the first 50m of the tertiary, the system would be completed by GOI. - 10 -

Consulting Services

4.05 Consultants with suitable agricultural as well as engineering experience, would be employed to assist PROSIDA and MOA in the design and construction supervision of the Cirebon systems and Rentang barrage and to carry out feasibility studies for future irrigation projects (para 4.06). Assurances were obtained that consultants acceptable to the Bank would be engaged within three months of Loan signing on terms and conditions approved by the Bank. Draft terms of references for the different consulting serv- ices are presented in Annex 4. Consultants would also be employed for Sampean Baru. The present consultants (NEDECO) would be retained to de- sign the North Sadang extension.

Feasibility Studies

4.06 Madiun Irrigation Systems (130,000 ha). These systems (Map 10867) comprise the last large block of irrigation remaining for rehabilitation (para 2.03). They are served by small rivers surrounding Madiun city. The feasibility study would establish what rehabilitation works are required along with their costs, and would examine the agricultural potential and supporting services requirements in detail. It would also include an agro- economic survey to establish basic data on the current rural levels of income and employment. It would be a two phase study, first the feasibility, f.l- lowed by the detailed design. The consultants (ELC/Nippon Koei-Italy/Japan) working on Madiun-Solo groundwater investigations have identified three pos- sible storage dam sites, which would provide dry season irrigation for the Madiun systems. These preliminary investigations would be followed through to feasibility studies suitable for appraisal.

4.07 Cirebon Feeder Canal. The consultants (NEDECO/SMEC) who prepared feasibility studies for Cirebon rehabilitation and Jatigede Dam (para 2.04), identified the approximate alignment of a feeder canal to provide dry season irrigation for about 30,000 ha of Cirebon area. These early studies would be carried through to feasibility level suitable for appraisal.

Water Supply, Demand and Quality

4.08 The Rentang area is supplied from the Cimanuk river. Water supply and demand were previously investigated under Credit 127-IND, and there is sufficient water supply to meet the demand for 100% of the area under paddy in tlhe wet season, but only about 30% in the dry season, in a normal year (four otUt Of five). Water supply for Cirebon comes from many small springs, strecanmsand rivers. Because of diffused water sources, it is difficult to calculate the water supply available to thie project, but past records indi- cate that there woudi be sufficient water in normal years to irrigate 100% of the rea for paddy in thie wet season and about 40% of thle area in the dry season, made up of 10, pa(ddy, 8% sugar and 22% mixed upland crops. The con- sultants for Cirebon rehabilitation would carry out detailed investigations - 1 1 -

of river flows and water demand for each crop. They would also examine ef- ficiency of water distribution, particularly in dry season. The on-farm development pilot projects would pay special attention to water demand for individual crops in the dry season, and to demonstration of better water management at farm level. The deterioration of the canals and structures has reduced field efficiency, but withi rehabilitation and efficient opera- tion, it would be raised from 30% to about 55%. This would allow cropping intensity to be raised to 145%. Sampean Baru would be supplied from a weir on the Sampean river. Allowing for delivery of water to existing systems both upstream and downstream of the project, there would be sufficient water for the planned cropping pattern. Details of water demand and supply are given in Chart 8966 and Annex 5. Tests of water samples in the project areas indicate that there are no harmful chemicals in the waters, nor is there a problem of salinity increasing in the future.

Implementation Schedule

4.09 Implementation schedules for Cirebon, Rentang and Sampean Baru are given in Charts 8960, 8961 and 8962. The design and construction period for Cirebon would be six years and for Rentang and Sampean Baru, five years. In order to expedite works, GOI has completed mapping of the areas before design commences and this would have a favorable effect on the schedule.

Cost Estimates

4.10 Total project costs are estimated at US$165 million, of which US$65 million or 40% is the foreign exchange component. The costs of the Cirebon- and Sampean Baru rehabilitation works are based on actual costs of similar works carried out in adjacent areas by PROSIDA. These estimates were prepared by PROSIDA's consultants in mid-1973 and were increased to end-1974 price levels during appraisal. Rentang barrage and drainage works were based on estimates prepared from preliminary designs made by PROSIDA and their consultants, as well as the actual cost of similar works recently completed in Rentang. These estimates were also updated to end-1974 price levels. Depending on the status of investigations, physical contingencies of between 10% and 25% have been included in the estimates. Twenty-five percent has been allowed because experience with the previous rehabilitation projects in Indonesia has shown that the extent of rehabilitation required on irrigation structures could only be finalized after the structure has been dewatered. Expected price increases are based on international commo- dity index projections and expected doniesticprice increases. For civil works the anntual percentage is 15% for 1975 and 12% annually thereafter. For equipment the percentage for 1975 is 11% and 7.5% thereafter. The per- centages for foreign and local inflation were assumed to be the same. Ex- pected price increases thus amount to about 30%vof total project costs.

4.11 A breakdown of project costs is presente(d in Annex 6 and summa- rized below: - 12 -

% of Foreign % of Item Local Foreign Total Local Foreign Total Exchange Total -----Rp Billion------…US$ ----- Million-----

Cirebon Reha- bilitation 10.2 6.2 16.4 24.8 14.9 39.7 35 24 Rentang works 8.3 5.2 13.5 20.0 12.5 32.5 40 20 Sampean Baru system 4.1 2.8 6.9 10.0 6.5 16.5 40 10

Total Capital Cost 22.6 14.2 36.8 54.8 33.9 88.7 38 54

Miscellaneous services, training & technical assistance 0.8 2.0 2.8 1.9 4.9 6.8 70 4

Base Cost Estimate 23.4 16.2 39.6 56.7 38.8 95.5 40 58

Physical con- tingencies 4.8 2.9 7.7 11.6 6.9 18.5 40 11 Expected price increases 13.2 8.0 21.2 31.7 19.3 51.0 40 31

Total Project Cost 41.4 27.1 68.5 100.0 65.0 165.0 40 100

Financing

4.12 The proposed Bank loan of US$65 million would finance the foreign exclhange requirements, which amount to about 40% of project costs. GOI's contribution of US$100 million (Rps 41 billion) would finance local cur- rency requirenments and would be met by budgetary appropriations to PROSIDA and MOA.

Procuremlient

4.13 Veehicles and equipment for construction, operation and agricul- tural services costing about IJSS3.5 million (Annex 3) would be procured after international competitive bidding in accordance witih Bank Group Guidelines. A 15% preference margin, or the prevailing customs duty, if lower, would be extended to local manufacturers in bid comparison. Small off-the-shelf items (excluding spare parts) costing less than US$10,000 each and limited to a total of US$100,000, which are not suitable for international tendering, would be purchased through normal Government pro- curement procedures. There are sufficient supplies of such goods to ensure adequate competition. - 13 -

4.14 The Rentang barrage (US$13 million) would be let as a single con- tract after international competitive bidding in accordance with Bank Guide- lines. Qualified local contractors would be given a preference of 7-1/2% in evaluation of bids. The other civil works on the project are estimated to cost US$54 million. They consist of rehabilitation works (US$51 million) and construction of agricultural and operator's buildings (US$3 million). Since they are made up of a large number of individually small works scat- tered over a wide area and time span, they would not be of interest to in- ternational contractors, and, as in Credits 127-, 220- and 289-IND, would be awarded to prequalified contractors (annually prequalified after adver- tisement and approval by the Bank) after local competitive bidding. The value of these contracts would be not less than US$75,000, and for those contracts above US$250,000 documents would be submitted to the Bank for review before tendering and letting contracts. The largest contracts would not exceed about US$500,000 based on experience of previous reha- bilitation projects. These works would be carried out mostly by labor intensive methods, but for large drains and rivers, where equipment is needed, PROSIDA would rent its equipment to the contractors or use force account. At present Indonesian regulations do not provide price inflation clauses in local civil works contracts. In view of present worldwide in- flationary trends, such clauses are essential to protect the contractors, and assurances that they would be included in all civil works contracts were obtained from GOI.

Disbursements

4.15 Disbursements would be made at the rate of 100% against the cif cost of directly imported vehicles and equipment, 95% of the ex-factory price of equipment manufactured locally and at 65% for imported equipment locally procured. For foreign consultants, technical assistance and training, dis- bursements would cover the actual foreign exchange costs. Disbursements for civil works would be at the rate of 50% of total cost, based on the estimated foreign exchange component (Annex 6, Table 7) and most would be disbursed througlh certified monthly contractors' progress payments. Disbursements would also include force account works whicih would amount to about US$3 mil- lion. Such disbursements would be made against a certificate of expenditure, the documentation for which would not be submittei to the Bank for review, but would be retained by the Borrower and made available for inspection by the Bank's supervision missions. MOA's disbursement procedures would be similar. For the monitoring survey (excluding technical assistance, which would be 100%) disbursements would be at the rate of 50% of total cost. Disburse- ments for mapping would be at the rate of 80% of total expenditures. The estimated schedule of expenditures on the project and a disbursement sched- ule are presented in Annex 7. It is expected that disbursements would be completed by June 30, 1982.

Accounts and Audit

4.16 PItOSIDA and government agencies' accounts are audited annually by the &overnment's audiitors. These auditors lhavebeen accepted for the - 14 -

other three IDA assisted projects executed by PROSIDA and satisfactory audit reports have been received. Assurances were obtained that PROSIDA and MDA would maintain separate project accounts and that satisfactorily audited fi- nancial statements, together with the auditor's comments, would be submitted to the Bank within four months of the close of each financial year.

Environmental Effects

4.17 The irrigation systems of Cirebon and Rentang have been in operation for many years and no adverse effects are expected from the project works. Improved drainage control gates at the sea should, in fact, improve the drinking water for the people close to the sea who are currently bicycling about 5 km to find fresh water in the dry season, because of ingress of salt water.

4.18 There is no schistosomiasis in Java, but cholera is prevalent in certain times of the year. Fertilizers and pesticides are already in use in and around the project areas and people are well aware of their toxic effects, and no adverse effects are envisaged.

4.19 In Sampean Baru, the advent of irrigation water would provide much needed domestic water supply and would be beneficial.

V. ORGANIZATION AND MANAGEMENT

Organization

5.01 Responsibility for project implementation would rest with PROSIDA, a unit in the Directorate General of Water Resources Development (DGWRD) in the Ministry of Public Works and Electric Power which is presently in charge of the First (Credit 127-IND), Third (Credit 220-IND), and Fourth (Credit 289-IND) Irrigation Rehabilitation Projects. A new field office would be set up by PROSIDA in Cirebon area to handle Cirebon rehabilitation works. Construction work in Rentang would be handledl by the existing field office in Jatibarang. Implementation of Sampean Baru would be carried out from the existing Pekalen Sampean Rehabilitation project headquarters (Credit 289-IND.) Chart 3963 shows the general organization of the DGWRD, Chart 8965 shows PROSIDA management structure and Chart 8964 the particular or- ganization for each area or sub-project.

5.02 PROSIDA is one of the most efficient units of the DGWRD, and, with the First Rehabilitation Project nearing completion, as well as the project providing consultants, an advisor to PROSIDA's General Manager (para 5.09) and other neededi technical assistance and training (para 5.03-5.09), it should have no difficulty in carrying out these additional responsibilities. 1OA would administer tlheagricultural support program, including the civil works, eqtuipment and vehicles, trainini and techniical assistance, and the project benefit monitoring system, ullder a special project directorate (para 5.10). - 15 -

Technical Assistance

5.03 An expatriate advisor would be retained for a three-year period to work with PROSIDA's General Manager, to assist with all aspects of his work and to strengthen the Provincial operation and maintenance organiza- tions in all IDA assisted rehabilitation projects executed by PROSIDA.

5.04 The delta of the Cimanuk river occupies part of the Rentang area (para 3.01) and, over the last 60 years, many old river channels have silted Up and closed. The coast has accreted and flood relief channels have been constructed. These flood relief channels suffer from siltation and levees on the main river and relief channels have sunk. The DGWRD has staff working on these problems. Two individual experts would be retained by the DGWRD to help his staff on the Cimanuk delta. They would visit Indonesia for periods of about one month at intervals of approximately six months, and on each occasion would recommend action to take for (a) reduc- tion of flooding in the area; (b) selection of suitable flood relief chan- nels for development; (c) stabilization of channel banks; and (d) combating of coastal accretion. A total of 12 man-months would be provided.

5.05 An individual soil conservation expert would be employed by MOA to advise him on river and stream stabilization methods, correct cropping techniques, establishing forest and vegetation belts and terracing in the Cimanuk catchment area (para 5.12). The work would be carried out under MOA's Directorate of Forestry working with the local authorities on farmers' own land. The expert would visit Indonesia for about six weeks, at suitable intervals as required by MOA. A ttotal of 12 man-months would be provided.

5.06 An agricultural planning and management specialist would be engaged to assist the Ministry of Agriculture (MOA) to prepare the agricultural de- velopment program for the project and later to assist in monitoring the plan in the field, particularly in extension services and data collection. He would visit Indonesia for about one month at three months intervals in the early project stages and at longer intervals later in the project, as re- quired by MDA. A total of 12 man-months would be provided.

5.07 An advisor would be retained by the MOA to assist them in preparing survey metlhods, questionnaire and the data processing system for monitoring the benefits in the irrigation rehabilitation projects assisted by the Bank Group (para 5.14). He would visit Indonesia for about six weeks twice in the first six months of the project and thereafter as required by MOA -- probably about one month a year. A total of 12 man-months would be provided.

5.08 Assurances were obtained that GOI would engage these specialists within six months of Loan signing. Draft terms of reference for the spe- cialists is included in Annex 4. GOI considers that for thie work described in paragraphs 5.04 through 5.07 the best and most economic technical assis- tance would be obtained by visiting specialists rather than fulltime advisors, since each recommended action would take time to fulfill and GOI agencies would be competent to undertake it without (lay-to-day supervision. - 16 -

Training

5.09 To help overcome the shortage of trained and experienced irriga- tion and agricultural personnel the project includes funds for training. While local training would continue at the Bandung Technical Academy and Surabaya Training Institute, under the DGWRD's Director of Training, the project provides funds for overseas training of some twenty Provincial 0 & M engineers for about three montlhs each; preparation of audio-visual training courses for 0 & M foremen and sub-foremen; sending six senior Provincial engineers on study tours of two months each in neighboring countries; sending six middle-level Provincial engineers overseas for water-management training of about three months duration; sending six DGWRDengineers for overseas post graduate training for planning and design for twelve months; sending eight MOA senior staff in agricultural management, extension activities and crop data collection for overseas training courses of three months duration; and sending ten middle-level MOA staff working on the project for three months overseas training courses to study their particular speciality. Assurances were obtained that, within 12 months of the date of Loan signing, GOI would submit the training program to the Bank for consultation before commencing the pro- gram. Details are presented in Annex 8.

Agricultural Supporting Services

5.10 The strengthening of agricultural supporting services would be achieved through the normal channels of the MOA. The D)irectorGeneral of Agriculture would nominate a Director to supervise the projects and a proj- ect manager to be located in Cirebon, responsible for agricultural exten- sion, research and training activities in the project. Twelve RturalExten- sion Centers would be established in Cirebon and Rentang areas for farmer training. MOA would assign the appropriate staff to the area. Equipment, vehicles and a communications system would be provided for agriculture.

5.11 To improve agricultural production, the full tertiary and quater- nary development (para 4.04) has been included in the project, and to obtain maximum benefits the BIMAS program, covering extension, improved seeds, fer- tilizer, pesticides and credit, would be expanded. An Agricultural Develop- ment Center would built for training local agricultural staff, collecting data and expanding the BIMAS program. iMOA,provincial irrigation engineers and farmers' groups would work together closely to improve water distribu- tion and management, particularly in the pilot project areas. Farmers would be trained in the Rural Extension Centers and rodent control would be coor- dinated through local authorities. An outline of the proposed agricultural program is presented in Annex 3. Assuiranceswere obtained that (a) adequate supplies of fertilizers, agricultural clhemicals and credit would be avail- able to farmers aIs works on thie irrigation systems are completed; (b) GOI would appoint suitably quialified and sufficient staff for the Agricultural Development Centre and for project development; and (c) zan agreed agricul- tural dlevelopment program for the project would be submitted to the Bank - 17 - within 12 months of Loan signing, and the program would be implemented. The agricultural support program for Sampean Baru would be included in that for Pekalen-Sampean, the much larger area, which surrounds it (para 3.02).

Cimanuk Soil Conservation Program

5.12 Soil erosion in the Cimanuk catchment is serious. Due to pressure on land, steep slopes have been improperly cultivated and erosion hias occurred with the consequent silting of streams and rivers in the Cirebon and Rentang areas and the catchment area of the proposed Jatigede Dam (para 2.04). Under the project MOA would implement a program of soil conservation in the catch- ment area, involving stream and river stabilization, development of better agronomic techniques and establishment of forestry and vegetation belts in cooperation with PROSIDA, local authorities and farmers. With advice from a specialist (para 5.05) these works would be implemented with a view to creating a Cimanuk catchment authority before project completion. This program would complement the UNDP Waterslhed Management project in progress in thie Madiun-Solo area.

Groundwater Investigation

5.13 This work, financed under Credit 289-IND, has been delayed due to highi costs and delays in equipment deliveries. The consultant's contract hias consequently been extended. The cost of this investigation was originally estimated to be US$1.7 million and would now be US$2.4 million. The project would finance foreign exclhange costs for equipment and consultants to com- plete the groundwater investigations after April 15, 1975, amounting to US$500,000.

Monitoring Benefits

5.14 The project benefits would be monitored, togethler withl other social aspects sucti as distribution of thiese benef its between slharecroppers, land- owners and landless laborers. Thie monitoring system would be extended to all the irrigation projects, in wlhichi tile lanik Croup has been involved. Tlie project would provide a constultant to assist GOI in selecting survey criteria and metlhods (para 5.07) and advise on survey irnplementation. The surveys w.otuld be imlplemented by M(OAannually from project commencement for about ten years. Assurances were obtainie( that GOI would subnit to the iBank a proposal for monitoring benefits witlhin six montlhs of Loan signing.

Operation and Maintenance

5.15 Operation and maintenance (O&Ml) of the irrigation systems and rural roads is the responsibility of the Provincial Governments which, because of inadequate funding, have failed to establish satisfactory organizations for this purpose. In spite of improvements in the arrangements for 0 & M in the fouLr on-going irrigation projects financed by ID)A, there is still need for more trained staff, as well as an increase in budgetary allocations. The expected increase in IPEDA (tlie land tax) and the added revenues from oil slhould permit tue Provincial Govermnents to allocate inore funds to 0 & M. PROSID)A, witlh the assistance of its 0 & M advisor, would be responsible for - 18 -

0 & M during the construction phase and during that time would help the Provinces to build up adequate organization and staff. PROSIDA would prepare a manual for the Provincial Governments indicating numbers and type of staff required, amounts of material, equipment and vehicles needed, and annual bud-- getary demands for 0 & M for each irrigation area. Assurances were obtained that GOI would (a) provide PROSIDA with adequate and timely funds to maintain all project works properly during the construction period; (b) cause the Provincial Governments to allocate sufficient funds and staff to ensure proper maintanence of all project works and rural roads as soon as they were comple- ted; and (c) submit PROSIDA's 0 & M plans to the Bank for review within three years of Loan signing.

Recovery of Costs

5.16 Taxes The cost of 0 & M after rehabilitationwould be about Rp 2,600/ha/annum(US$6.30). Although a legal basis exists for levying water charges, farmers in Indonesia at present pay only IPEDA collected by the village heads and used by the local and provincialadministration for management of public services. GOI has recently tied the disbursementof INPRES, a local infrastructuredevelopment program financed by the central government, to IPEDA collection performance. Under this incentive program, additional disbursementsfor local development are made when the IPEDA collection exceeds a mutually agreed target. As a result, there were marked improvements in the collectionof IPEDA in the last two years and this trend is expected to continue. In addition to IPEDA, farmers pay village taxes and other contributionsfor road maintenance, schools, public buildings and mosque construction. In the project areas these taxes generally amount to about the same as IPEDA.

5.17 Since June 1972, a GOI interministerialcommittee has been studying methods of collecting a portion of the increase in farm income from irriga- tion development to cover 0 & M costs and a portion of the investmentcosts. The committee'spreliminary recommendationwas that irrigation charges should be collected by means of increases in IPEDA and that IPEDA would be assessed at 5% of net value of production (NVP) of the land. This method of collect- ing irrigationcharges is the most appropriate and practicable in the Indonesian context and GOI has agreed to implement it. Currently, the average annual IPEDA in the project areas is between Rp 1,200 and Rp 2,000/ha. However, under the 5% of NVP concept, this figure would rise to between Rp 2,000 or Rp 2,500/ha by 1983, even without the project. With the project it is estimated that as a result of land reclassification,the average IPEDA in the project areas would rise to about Rp 6,000/ha.

5.18 Project Revenues. After completion of the Cirebon project, the annual increase in IPEDA would be about Rp 352 million. At an annual discount rate of 10% over 50 years, the present worth of the incremental revenues would be about Rp 1,560 million. The present worth of the project cost plus 0 & M costs, at the same interest rate would be about Rp 12,560 million, indicatinga cost recovery ratio of about 12.5%. On the other hand, if interest rate is not considered, the project costs would be fully recovered within about 50 years. In view of the small farm sizes and relativelylow - 19 - income even at full development, this is considered to be reasonable. The situation for Rentang would be similar to Cirebon. In the case of Sampean Baru, where the IPEDA base is extremely low, and the tax at full development similar to Cirebon, the incremental revenue would be higher. Assurances were obtained from GOI that, as each tertiary network under the project is completed, it would collect IPEDA from landowners at such level required to recover full 0 & M costs and a reasonable portion of the capital costs of the project; proposed IPEDA rates would be submitted to the Bank for review every two years commencing four years after Loan signing.

VI. PRODUCTION,MARKET PROSPECTS, PRICES AND FARM INCOME

Production

6.01 Paddy would continue to be the dominant crop after completion of the project. In the Sampean Baru area cropping intensitywould increase from 90% at present to 185% at full development,but only a marginal increase in cropping intensity would take place in Cirebon and Rentang. Important improvementsin cultivation practice expected in all three project areas include a substantial increase in the area planted to HYV paddy, an increase in the use of fertilizers,pesticides and other inputs and the replacement of manual labor, where it is still used for plowing, by buffaloes.

6.02 At full development ten years after project commencement,average paddy yields would vary between 4.0 ton/ha in the Sampean Baru scheme and 4.5 ton/ha in the Cirebon and Rentang schemes. Comparable, and even higher yields, are already being obtained in the better parts of the irrigation projects already rehabilitated. Total paddy production from all three schemes would be about 950,000 tons at full development, compared with 500,000 tons at present. Production of secondary crops would also increase from about 22,000 tons at present to 37,000 tons at full development,while the corresponding ncrease of sugarcane production in the Cirebon and Rentang areas would be from 675,000 to 860,000 tons. Without the project production would increase about 1% per annum, in spite of deterioratingsystems, due to improved agri- cultural inputs and services. Details of present and future yields and production are given in Annex 1.

Market Prospects and Prices

6.03 Indonesia has imported between 0.5 and 1.5 million tons of rice in recent years and it is expected that some imports will be needed for at least the next decade. Thus the incremental 255,000 tons of milled rice that would be produced in the project areas at full developmentwould find a ready market in Indonesia. The quantity of secondary crops to be produced would be small relative to demand and there would be no difficultiesin selling the marketable surplus in nearby towns. The small amount of sugar and cotton would be readily sold by State marketing organizations. Most rice mills are - 20 - orivatelv owned and are now operated at less than full capacity. It is rea- sonable to expect that the private sector would expand the drying, storage and milling facilities in the project areas as production increases.

6.04 Inputs and outputs were evaluated at projected farm gate prices expressed in terms of 1974 constant prices. For the major internationally traded commodities, these prices are based on the Bank's world market price projections of November 1974. The Bank projects the world market price of average quality Thai rice to fall from around US$450 per ton fob Bangkok in 1974 to US$190 per ton (at constant 1974 prices) in 1985. Although the implied deterioration in the terms of trade for agriculture has been taken into account in the economic analysis, it is expected that the financial impact as reflected in the farm budget analysis would be different (Annex 9). The paddy farm-gate price equivalent to a 1974 world market price for rice of US$450 per ton is Rp 120 per kg (US$0.29/kg). Because of Government policy to keep the price of food to consumers low, the actual farm-gate price of paddy is held at Rp 40 per kg by selling imported rice below cost. At the same time, the Government subsidizes fertilizers and other imported inputs sold to farmers. The 1974 farm-gate price of urea, for instance, based on the world market price would be Rp 120 per kg, while the subsidized BIMAS price is Rp 40 per kg. Thus the relative price to farmers of inputs and outputs is roughly equal to the relative world market price, while the price level is maintained artificially low. At full development it is assumed that both economic and financial prices for inputs and outputs will coincide at the Bank's lower projected world market prices (at 1974 constant prices). For example, the farm-gate price of paddy is projected to be Rp 53 per kg and of urea, Rp 63 per kg (Annex 10).

Farm Income

6.05 Farming in the project areas is mostly subsistence in nature. In Cirebon and Rentang, paddy is the principal crop, grown mainly for family consumption. Cash income is derived from the sale of surplus paddy and other crops such as vegetables and soyabeans, as well as earnings from off-farm employment. In Sampean Baru, paddy, corn and cassava are grown primarily for home consumption. Some cash income is obtained from selling the surplus but in many years the paddy and corn crops fail, cassava is eaten at home and there is no marketable surplus.

6.06 Separate farm models have been prepared for each of the project areas. In the Cirebon and Rentang areas where about 20% of the farmers are sharecroppers, this group has been analyzed separately. In Sampean Baru, incomes under tenancy arrangements would be too low to support a sharecropper 's family and sharecropping is therefore insignificant. In all areas there are many landless laboxers, but income data for this group were not available. The estimated present crop income and that projected at full development for the various farm models are presented in detail in Annex 9 and summarized below: - 21 -

Farm Income Farm Present Future Present Future Area Size Farm System -- Rp '000 ---

Cirebon/Rentang 0.25 Owner Farming 30 65 72 160 Sharecropping 15 33 36 80

0.5 Owner Farming 52 120 125 290 Sharecropping 26 60 65 150

1.5 Owner Farming 132 310 320 750 Sharecropping 68 160 165 390

Sampean Baru 0.25 Owner Farming 8 56 20 140

0.5 Owner Farming 12 126 30 300

1.0 Owner Farming 62 212 150 510

6.07 Farm incomes in the project areas at present are extremely low. Small holdings of 0.5 ha and less typicallydo not produce even enough food for subsistence. In the Cirebon and Rentang areas, income from off-farm employmentaccounts for half or more of total family income for small owner- operators. Sharecroppers have to rely even more heavily on outside sources of income. In Sampean Baru, heads of families are typically part-time farmers who work as laborers in nearby towns and return to their farms seasonally to assist with land preparation and more strenuous farm work. Women and children take care of farm management and harvesting. Farm produc- tion serves as a supplement to income earned off the farm.

6.08 Although it is difficult to compare crop incomes derived from farm budgets with aggregate data from the national income accounts, a few simple comparisons indicate the extent of poverty in the project areas. Even with the project, owner operated small farms in all three areas would be at bare subsistencelevels with per capita 1/ net crop incomes of less than US$20 per annum, or less than one-third the national per capita income of US$85. Sharecropperswould be even worse off. Even the few larger owner operated farms of around 1.0 to 1.5 ha have per capita incomes less than US$50 at present and must rely on some off-farm income. With the project, this group could expect to produce a consistent surplus above family needs, but per capita net crop incomes would still be less than US$110 in all cases. Because there is so little socio-economic information on the project areas, emphasis would be placed on monitoring project benefits and determining the project's impact on income levels and distribution (para 5.14).

1/ Family of seven. - 22 -

VII. BENEFITS AND JUSTIFICATION

7.01 The proposed project would increase yields on about 190,000 ha in three areas currently dependent on run-of-the-riverirrigation and rainfed cultivation by providing better water control, improved drainage and the necessary agriculturalsupporting services. Paddy would continue to be the dominant crop in all three areas. Assuming a 50-year project life, farm gate prices for major inputs and outputs based on the Bank's commodity price projections for 1985 and a seasonally variable shadow wage rate for farm labor, the economic rates of return (ERR) would be about 38% on the Cirebon project, 44% on the Rentang project and 18% on the Sampean Baru project. Alternatively,if a 30-year project life were used, the ERR's would be not change in any project area by even 1%. The high rates of return for Cirebon and Rentang reflect the priority of rehabilitatingand completing these two systems to achieve quick productionbenefits. All three project areas suffer from chronic unemploymentand underemployment. The project would improve the situation considerablyby creating the equivalent of some 45,000 full-time agriculturaljobs by 1985 (Annex 10).

7.02 The rates of return show little sensitivity to the assumptions made in evaluating farm labor. They are more sensitive to the level and pace of agriculturaldevelopment, which emphasizes the importanceof an effective agriculturalextension service and the timely availabilityof adequate farm inputs. Under the adverse assumptions tested in the sensi- tivity analysis (Annex 10), in no case did the rate of return on any project fall below 14%.

7.03 At full agriculturaldevelopment, rice import savings due to the project would amount to US$53 million per year at the 1985 projected world market price cif Jakarta (at constant 1974 prices) of US$208 per ton. Smaller amounts would be saved by the production of secondary crops. After deducting the incremental cost of imported fertilizersand chemicals, the net annual foreign exchange savings from incremental rice production alone would be about US$47 million.

VIII. RECOMMENDATIONS

8.01 During negotiations,agreements were reached on the following principal points:

(a) GOI would, through PROSIDA and its appropriate local agencies, guide and direct farmers in completing the civil works on each tertiary and quaternarycanal system and would cause such works to be completed within 12 months after the completionof the first 50m of each tertiary by PROSIDA. Where farmers fail to complete such works, GOI would complete them (para 4.04); - 23 -

(b) Consultants,acceptable to the Bank, would be engaged by DGWRD on terms of reference and conditions approved by the Bank within three months of Loan signing (para 4.05);

(c) GOI would ensure that (i) adequate supplies of fertilizers, agriculturalchemicals and credit would be available to farmers; (ii) suitably qualified and sufficient staff would be appointed for the agriculturaldevelopment centre and project agricultural development;and (iii) an agreed agriculturaldevelopment program for the project would be submitted to the Bank within 12 months of Loan signing, and the program would be implemented (para 5.11); and

(d) GOI would (i) provide PROSIDA with adequate and timely funds to maintain all project works properly during the construction period; (ii) cause the Provincial Governments to allocate sufficient funds and staff to ensure proper maintenance of all project works and rural roads as soon as they were completed and (iii) submit PROSIDA's 0 & M manual to the Bank for review within three years of Loan signing (para 5.15).

8.02 The proposed project would be suitable for a Bank loan of US$65 million, with 30 years maturity including six year grace. The Borrower would be GOI.

ANNEX 1 Page 1

INDONESIA

IRRIGATION PROJECT VI

Agricultural Production

General

1. The previous five irrigation projects in Indonesia and the Irriga- tion Program Survey have described in some details tne soil, climate and cultural practices of paddy planting and, therefore, in this Annex it is not proposed to repeat these details. Climatic data relating to the project area are given in Table 10. Suffice to say, that the soil and climate are suit- able for growing paddy as a main crop and for a variety of secondary crops in the dry season.

Present Cropping Pattern

2. Cirebon - During the wet season about 82,000 ha are cultivated with paddy and 7,000 ha with sugar. A small area of secondary crops on tne higher ground is planted with soyabeans and other cash crops, such as corn. During the dry season, flow in the many rivers and streams is drastically reduced; springs arising from the foothills of the volcano -- Gunong Ciremai -- how- ever, do provide a reasonably reliable flow enabling about 10,000 ha of paddy to be grown, and about 7,000 ha of sugarcane (sugarcane grows on a 14-month rotation and, therefore, continues throughout both the wet and dry seasons), as well as 18,000 ha of secondary crops. Crop intensity is therefore about 140%.

3. lWet season paddy is grown between November and May, and both the planting and harvesting periods are spread over about an eight-week period due to the rotational system of supplying water and also due to possible late arrival of the rains.

4. During the wet season some 30,000 ha of local variety paddy and about 50,000 ha of HYV are grown wherever the soil and water supply are most effective. In the dry season about 10,000 ha of IiYV paddy are grown wherever the water supply is most reliable.

5. 1~Rentang- During the wet season about 92,000 ha of paddy is planted throughout the area. In the dry season about 25,000 ha are planted with paddy and about 2,000 ha witihsecondary crops, making a harvested cropping intensity of 130%. Generally, in the dry season, larger areas may be planted with paddy but, due to lack of water from the Cimanuk River, these areas are nieverharvested. The timing of planting is similar to that of Cirebon, although in the poorly drained areas some planting may be delayed inlto February. ANNEX 1 Page 2

6. In the wet season, local varieties of paddy are planted on about 42,000 hiaby tie traditional method of transplanting. In addition, some 8,000 ha are direct seeded and 42,000 ha are planted with HYV. In the dry season, generally, only HYV paddy is planted in areas (25,000 ha) with thie best water supply.

7. Sampean Baru - During the wet season about 2,000 ha of local variety paddy are planted and about 2,500 ha of corn are interplanted with cassava. During the dry season 1,300 ha of cassava, 600 ha soyabeans and 400 ha cotton are planted. In both the wet and dry seasons crops depend entirely on the amount of rainfall and, usually, large areas suffer from crop failure. In normal years the cropping intensity is about 90%.

Present Yields

8. Cirebon - Yields vary widely due to the different varieties planted and the different conditions of water supply and drainage. On the average, local varieties yield 1.5 ton/ha per wet season crop, and HYV yield nearly 3 ton/ha, giving a weighted average of 2.8 ton/ha. Yield during the dry season for HYV is slightly lower, but not significantly so. For the secondary crop, soyabeans have been used as the model with yields as low as 0.7 on/ha. Sugarcane yield is about 90 ton/ha.

9. Rentang - The yields of paddy vary due to variety, condition of drainage and water supply in the various areas. On the average, local varieties yield 1.7 ton/ha, and HYV yield 3.5 ton/ha planted in rehabilitated areas, giving a weighted avarage of 3.(;ton/ha. There is a slight decline in the dry season (Table 6).

10. Sampean Baru - Paddy yield is about 1.5 ton/ha in normal years. The yield of secondary crops is: Soyabeans 0.4 ton/ha, cassava 3.0 ton/ha and cotton about 1 ton/ha (Table 8).

Future Cropping Pattern

11. Cirebon/Rentang - Without the project thie present cropping intensity would remain at the same level. With the project the improved water supply, due to rehabilitation, would cause a small increase in the cropping intensity of about 5X, bringing Cirebon to 145% and Rentang to 135%.

12. Sampean Baru - With irrigation, nearly the entire area would be planted witlh IIYVpaddy and, in the dry season, although the paddy will be planted wherever water is available, for purposes of the project evaluation it lhasbeen assumed thiat soyabeans would be the main crop, covering nearly 9,000( ha. Cropping intensity would be 185/. Cotton would reilainas a small estate crop.

Future Yields

13. Cirebon/Rentang - With good water control, drainage, an adequate supply of agricultural inputs and credit, as well as a strengthened extension AiNNEX1 Page 3

service, future paddy yields in the wet season would be expected to reacih 4.5 ton/iha with HYV, wiciih would increasingly become the major crop in botn seasons. Yields of secorLdary crops, taking soyabeans as the project example, would ris;e to 1.2 ton/ha, and sugarcane would rise to 115 ton/ha (Tables 5 and 7).

14. Sampean Baru - With the completion of project construction and the strengthened agricultural support program, at full development paddy yield would reach 4.0 ton/ha, soyabeans 1.0 ton/ha and cotton 1.5 ton/na (Table 9).

Drying and Storage

15. Drying is generally carried out on a flat concrete floor at the rice mills or on the roadside outside the houses. Losses can be very heavy in the event of rains coninciding witih the harvesting. Paddy or dry stalk paddy (that is, paddy grain with about 15 cm stalk) is usually stored in the hiome in bags or on racks, and villages generally lhave small paddy barns. Losses are fairly high due to rodents. Storage capacity in the project area can readily be expanded to take care of increased production by the local farmers. Losses would be reduced under tihe project by tile farmers' training program.

Processing

16. The rice mills and hullers in Cirebon/Rentang and Sampean Baru are running at no more than 75% capacity. It is expected that private enterprise would increase capacity, as necessary, as the output from the project increases. It is the Government's policy to expand the number of small hullers in the areas.

larketing

17. The farmer generally sells his surplus paddy to Government organi- zations at a set floor price. On thieother hand, poorest farmers sell their crop to middlemen before the harvest so that the farmer obtains credit for ihis subsistence needs. Tihese poor farmers theen receive a price below the floor price for their crops. GOI's plans are to expand its purchasing faci- lities in the areas, as well as credit facilities, and it is hoped that througlh prolect development, farmers would receive the full floor price.

fables Attached(

1. Cirebon - Cropping pattern and production 2. iRentang - Cropping pattern and production 3. Samapean Baru - Cropping pattern and production 4. Cirebon Value of present production 5. Cirebon - Value of future production with project 6. Rentang - Value of present production 7. Rentang - Value of future production with project 8. Sampean Baru - Value of present production 9. Sampean Baru - Value of future production with project 10. Climatic data INDONESIA

IRRIGATIONPROJECT VI

Cirebon: Cropping Pattern and Production

Cropped Area Crop Production

_ 31 w 3/ p w (ha)------(ton'OOO)------Wet Season

Local Variety Paddy 28,500 8,500 43 20 HVY Paddy 53,000 73,000 148 329 Sugar Cane 1/ 7,000 7,000 - - Secondary Crops 2/ 1,500 1,500 1 1 Sub-Total 90(000 Yo,ooo (192) (70) Dry Season

HYV Paddy 10,000 16,000 25 67 Sugar Cane 1/ 7,000 7,000 630 805 Secondary Crops 2/ 18,000 16 000 13 19 Sub-Total 35,000 (MU) (591)

Total 125,000 17-900 (B7) (17 1)

Paddy 91,500 97,500 216 416 Sugar Cane 14,000 14,000 630 805 Other Crops 19,500 17,500 14 20

CroppingIntensity (%) 140 145-

1/ Productionis presented as a dry season crop.

2/ Comprising corn, soyabean and vegetables. Soyabean used as a sample crop for project analysis. H

3/ P: present, and W: with project. I ~ INDONESIA

IRRIGATIONPROJECT VI

Rentang: Cropping Pattern and Production

Cropped Area Crop Production

P3/ WI3 P _W ----- (ha)_------(ton'000)-

Wet Season

Local Variety Paddy 48,500 12,500 82 29 HYV Paddy 43,000 79,000 129 356 Sugar Cane 1/ 500 500 - - Sub-Total 92,000 92,000 (211) (375 Dry Season

HYV Paddy 25,000 28,000 70 118 Sugar Cane 1/ 500 500 45 58 Secondary Crops 2/ 1,500 4,000 1 5 Sub-Total 27,000 32,500 (li) (1BT)

Total 119,000124, (p17) (Z6)

Paddy 116,500 119,500 281 503 Suggar Cane 1,000 1,000 45 58 Other Crops 1,500 4.,ooo 1 5

Cropping Intensity (%) 130 135

1/ Production is presentedas a dry season crop.

2/ Comprising corn, soyabean and vegetables. Soyabean used as a sample crop for project analysis. 3/ P: present, and W: with project. INDONESIA

IRRIGATIONPROJECr VI

Sampean Baru: Cropping Pattern and Production

Cropped Area Crop Production

P 5/ Ni P_ w ------(ha)------(ton'OOO)------Wet Season

Local Variety Paddy 1/ 2,000 - 3.0 - HYV Paddy 2/ - 7,500 30.0 Corn 2,500 1,900 2.0 3.8 Cassava 3/ 2.000 - o.6 - Sub-Total 6,500 9,400 37 3T.T Dry Season

Cassava 1,300 - 3.9 Soyabean 600 8,600 0.2 8.6 Cotton (Seed) 400 400 0.4 0.6 Sub-Total 2,300 (1:) (9) Total 6,8l 1 (10.1) (4177)

Paddy 2,000 7,500 3.0 30.0 Cotton (Seed) 400 400 0.4 o.6 Other Crops 6,400 10,500 6.7 12.4

Cropping Intensity 4/ (%) 90 185

1/ Rainfed paddy. 2/ Irrigated paddy. 3/ Cassava interplanted with corn. 4/ Total net area: 9,800 ha. 5/ P: present,and W: with project. INDONESIA

IRRIGATION PROJECT VI

Cirebon: Value of Present Production

Gross Value Net Value Net Return Cropped Farm Gate of Productiqn of 3/ from Area Yield Price Production Costs3 Production- Project Area (ha) (ton/ha) (Rp/ton) ------(Rp'000/ha)------(Rp million)

Wet Season

Local Variety Paddy 28,500 1.5 120,000 180.0 25.6 154.4 4,400 HYV Paddy 1/ 53,000 2.8 120,000 336.0 48.8 287.2 15,222 Sugar Cane- 2/ 7,000 - - - 7 1 Secondary Crops- 1,500 0.4 130,000 52.0 4.9 47.1 71 Sub-Total 90,000 19,693

Dry Season

HYV Paddy 1/ 10,000 2.5 120,000 300.0 46.4 253.6 2,536 Sugar Cane- 2 7,000 90.0 23,200 2,088.0 141.5 1,946.5 13,626 Secondary Crops-/ 18,000 0.7 130,000 91.0 5.1 85.9 1,546 Sub-Total 35,000 17,708

Total 125,000 37,401

Cropping Intensity (%) 140

1/ Production is presented as a dry-season crop.

2/ Cash crops such as corn and soyabean. Soyabean used as a sample secondary crop for project analysis.

3/ Exclude labor costs.

.I ) INDONESIA

IRRIGATION PROJECT VI

Cirebon: Value of Projected Production at Full Development

Gross Value Net Value Net Return Cropped Farm Gate of Producti of 3/ from Area Yield Price Production Costs - Production - Project Area (ha) (ton/ha) (Rp/ton) ------(Rp0o0o/ha)------(Rp million)

Wet Season

Local Variety Paddy 8,500 2.3 53,000 121.9 28.3 93.6 796 HYV Paddy 73,000 4.5 53,000 238.5 43.8 194.7 14,213 Sugar Cane- 2 7,000 ------Secondary Crops2/ 1,500 0.8 104,000 83.2 8.3 74.9 112 Sub-Total 90,000 15,121

Dry Season

HYV Paddy 16,000 4.2 53,000 222.6 43.0 179.6 2,874 Sugar Cane"/ 7,000 115.0 8,400 966.0 162.0 804.0 5,628 Secondary Crops2/ 16,000 1.2 104,000 124.8 9.7 115.1 1,842 Sub-Total 39,000 10,344

Total 129,000 25,465

Cropping Intensity (%) 145

1/ Production is presented as a dry season crop.

2/ Cash crops such as corn and soyabean. Soyabean used as a sample secondary crop for project analysis.

3/ Exclude labor costs. mX INDONESIA

IRRIGATION PROJECT VI

*Rentang: Value of Present Production

Gross Value Net Value Net Returns Cropped Farm Gate of Producteopn of 4/ from Area Yield Price Production Costs- Production- Project Area (ha) (ton/ha) (Rp/ton) ---- (Rp'000/ha)------(Rp million)

Wet Season

Local Variety Paddy./ 48,500 1.7 120,000 204.0 25.6 178.4 8,652 HYV Paddy 2/ 43,000 3.0 120,000 360.0 48.8 311.2 13,382 Sugar Cane- 500 - - _ _ _ _ Sub-Total 92,000 22,034

Dry Season

HYV Paddy 2/ 25,000 2.8 120,000 336.0 46.4 289.6 7,240 Sugar Cane- 500 90.0 23,200 2,088.0 141.5 1,946.5 973 Secondary Crops 1.500 0.7 130,000 91.0 5.1 85.9 129 Sub-Total 27,000 8,342

Total 119,000 30,376

Cropping Intensity (%) 130

1/ Includes 29,000 ha under transplantedrice and 20,000 ha under directly seeded rice.

2/ Production is presentedas a dry season crop.

3/ Soyabeanused as a sample crop for project analysis.

4/ Exclude labor costs. INDONESIA

IRRIGATION PROJECT VI

Rentang: Value of Projected Productionat Full Development

Gross Value Net Value Net Return Cropped Farm Gate of ProductV/n of 4 from Area Yield Price Production Costs- Production- Project Area (ha) (ton/ha) (Rp/ton) ------(Rp'00/ha)-----(Rp million) Wet Season

Local Variety Paddyl/ 12,500 2.3 53,000 121.9 28.3 93.6 1,170 HYV Paddy 79,000 4.5 53,000 238.5 43.8 194.7 15,381 Sugar Cane_2/ 500 - - - - - _ Sub-Total 92,000 16,551 Dry Season

HYV Paddy 28,000 4.2 53,000 222.6 43.0 179.6 5,029 Sugar Cane2/ 500 115.0 8,400 966.0 162.0 804.0 402 Secondary Crops3/ 4,000 1.2 104,000 124.8 9.7 115.1 460 Sub-Total 32,500 5,891

Total 124,500 22,442

Cropping Intensity (%) 135

1/ Includes 10,000 ha under transplantedrice and 3,000 ha under directly seeded rice.

2/ Productionis presented as a dry season crop.

3/ Soyabeanused as a sample crop for project analysis.

4/ Exclude labor costs. x INDONESIA

IRRIGATIONPROJECT VI

Sampean Baru: Value of Present Production

Gross Value Net Value Net Returns Cropped Farm Gate of Productkpn of 4/ from

Area Yield Price Production Costs - Production _ProjectArea (ha) (ton/ha) (Rp/ton)- - '(pr000 /ha)------(Rp million) Wet Season

Local Variety Paddyl!/ 2,000 1.5 120,000 180.0 25.6 154.4 309 Corn 2 2,500 0.8 50,000 40.0 12.3 27.7 69 Cassava- 2,000 0.3 7,000 2.1 1.4 0.7 1 Sub-Total 6,500 379 Dry Season

Cassava2/ 1,300 3.0 7,000 21.0 4.6 16.4 21 Soyabean 600 0.4 130,000 52.0 5.1 46.9 28 Cotton (seed) 400 1.0 244,000 244.0 53.2 190.8 76 Sub-Total 2,300 125

Total 8,800 504 CroppingIntensity3/ (%) 90

1/ Rainfed paddy.

2/ Cassava interplantedwith corn.

3/ Total net area: 9,800 ha.

4/ Excludes labor costs.

020 INDONESIA

IRRIGATION PROJECT VI

Sampean Baru: Value of Projected Production at Full Development

Groas Value Net Value Not Return Cropped Farm-Gate of Production of 1/ from Area Yield Price Production Coate / Productior- ProJect Area 7&(Tonh) (Rpt-onJ -- Rp'i--/---)--(Rp m-illion) Wet Season

HYVPaddy 7#500 4. o 53,000 212e0 43.8 168.2 1,262 Corn 1,900 2.0 43,000 86.0 16e3 69.7 132

Sub-total 9,1400 1,394

Dry Season

Soyabean 8,600 1.0 104,000 10).O 9.7 94.3 81 Cotton (seed) 400 1.5 178,000 267,0 46.o 221.0 08

Sub-total 9,000 899

Total 18,400 2,293

Cropping Intensity (%): 185

2/ Pclude labor cost8, AJli] 1 Table 1o INDONEA

IRRIgATIONPROJECT VI

Average Annual Rainfall -

Above Average Above Average Station Sea Level Annual Rainfall Station Sea Level Annual Rainfa3l (in) ~(nmm) (mn) (mm)

Cirebon Area Sampean Baru Area

Losarang 4 1434 Waduk I 375 1892 MaJalengkIa 145 3137 Tengger 20 1102

Plumbon 17 2150 Kelabang 3148 1652

Maja 600 3951 2/ Damtaal 210 1656

Telaga 500 3135 Wonosroyo 250 17146

Setupatok 21 2396 Dam Jero 230 1805

Linggarjati 550 3541 2/ Bondowoso 255 1990

Kuningan 1480 2723 Lojajar 286 1792

Darma 500 2647 Stimberbendo 310 2019

Ambit 25 2250 Ancar 350 2074

Cikeusik 28 2243 Massan 370 21141

Suurwatu 10 1853 Tamanan 340 1916

Walahar 34 2472 Sukowono 335 2377

&Skahaji 80 3291 Pinangpait 485 2022

Lame 1145 2908 Paidlaan 530 2030 SidangJawa 115 2783 Naskuning 354 2115

Sadarehe 1,100 4997 2/ Tlogosari 530 2337 Mandiracan 350 3528 Arjasa 10 988 Cangkuang 5 1827 Ka3isat 1,170 2614

Bayeman 130 1338

1/ Recordscover the periods1920-1940 and 1956 to pregent.

2/ Outsideproject area on the higherelevation. ANNEX 2 Page 1

INDONESIA

IRRIGATIONPROJECT VI

AgriculturalSupport Program

Cirebon/Rentang/SampeanBaru

Organizations

1. The existing agriculturalsupporting services in Java have been described in the last five IDA irrigationprojects, and also in detail in the IrrigationProgram Survey. It is therefore proposed to summarize briefly the services herein. The Governmentorganizations with whom the farmers have dealings with regard to agricultureand irrigationare as follows:

(a) BIMAS which gives a farm input package and credit program;

(b) BRI (The Peoples Bank of Indonesia)which provides credit within the BIMAS program;

(c) BUUD - A successor to the cooperativesin the villages, which purchases paddy and sells agriculturalinputs, provides rice milling facilitiesand some extension within the BIMAS program;

(d) MOA - The provincialstaff of the MOA provide routine extension services both inside and outside the BIMAS program;

(e) ProvincialIrrigation Service - This service operates and maintains the irrigationsystem down to the turnout on the secondary canal;

(f) Ministry of Interior - From the secondary turnout, the irrigationsystem of tertiary and quarternarycanals is operated by the village chief who comes under the local administrativeservice;

(g) All the above organizationsare coordinatedby the district officer with irrigation committees,at district, subdistrictand village levels.

Extension,Fertilizer, Pesticides and Credit

2. All the above services are provided through BIM4AS. This program, working through existing organizations,covers only about 40% of Cirebon/ Rentang area but none of Sampean Baru during the wet season. In the dry season, less than 30% of Cirebon/Rentangfarmers are covered but ANNEX 2 Page 2

no part of Sampean Baru. Such services for secondary crops by the BIMAS program have only just begun. At full development, the BIMAS program would be expanded to cover at least 85% of each of the project areas. The supply of fertilizer under the BIMAS program is handled by two government agencies; PN Pertani and PN Pusri, and a small number of private companies. These agencies supply the inputs to sub-agencies at district level, who, in turn, distribute to BUUDor to registered Kiosk operators at the village unit level. At present, the distribution of the inputs is not very efficient. On occa- sions, certain areas have an excess of supply and other areas suffer from shortage and there is no quick way to redistribute the inputs.

3. Credit is handled by the BRI through branch offices in each district and a small office in most village units. There is no long-term credit and most loans are for production or subsistence. The BRI is working reasonably well but repayments are under 90%.

4. Agriculturalextension is in the process of being transferred to the Agency for Education, Training and Extension (AETE) under the MOA. The various extension units will be transferred to this new Agency by mid-1975. BIMAS will, however, continue to operate as a separate Agency under the MOA with close ties to the AETE.

5. Currently, research for paddy and secondary crops is handled by the M4OAthrough a number of agencies, such as the Central Research Institute for Agriculture (CRIA) which operates at Bogor. MOA is being reorganized and will have an Agency for Research and Development in 1975 which will take over all research, including paddy which will be based at Sukamaridi. The Bank is assisting in the establishment of this Agency and its research centers. There are two experimental stations within the project area; one at Kuningan for upland crops (soybeans and corn), and another at Plumbon for lowland crops (rice and sugar cane). Both these stations lack staff equipment and facilities,but they will be improved under the Bank's research project.

Seed

6. Seed production for paddy is provided from the National Seed Cor- poration at Sukamandi as well as from local farmers. Production of secondary crop seeds is still very poorly developed, although some foundation seed is produced at Kuniingan. Seed production in the project areas will be improved througlh training in the Agricultural Development Center.

Agricultural Support Program in the Project

7. Thieobjective of the agricultural services component of the project would be to improve the production and income of more than 400,000 farm families on about 190,000 ha of irrigated land in Cirebon, Rentang and Sam- pean i3aru. In addition, as the project develops, the surrounding areas would benefit from the program. ANNEX 2 Page 3

8. The main component of the proposed program would be the formation of a project directorate under the Director General of Agriculture in MOA to supervise the project and progressivelyto increase its influenceover other areas being rehabilitatedin Indonesia. Extension field workers would be increased from 185 to 500 in Cirebon/Rentangand from 2 to 14 in Sampean Baru. A Bank mission visited Indonesia to report on agriculturalextension at the farm level and their report will be considered by MOAbefore submitting their proposed agricultural development plan for the area.

9. An agricultural project manager would be appointed for the project who would be stationed in Cirebon.

10. As described in Annex 3, an Agricultural Development Center, (ADC) and 12 Rural Extension Centers in the Cirebon/Rentangarea would be provided under the project. The ADC would be used for training local agricultural staff, collection of agriculturaldata, disseminationof applied research and as the base for expansion of all BIMAS' activities. The Rural Extension Centers would be used to expand the key farmer training program throughout the project areas. Improved local seed productionwould also be developed through the ADC. Sampean Baru agricultural developmentwill be included with the program for Pekalen-Sampean, the large area by which it is surrounded. This plan is being prepared by MOAunder Credit 289-IND.

Fertilizer

11. At full development the total annual fertilizer requirements for the project area would be 50,000 tons of UREA and TSP. Rodentcide require- ments would be on the order of 100 tons. The present development programs for fertilizerand insecticidein Indonesia would be able to meet these demands.

Farmers' Organizations

12. The farmers' organizationsat tertiary and quanternary levels, such as "Dharma terta," would be expanded to cover the whole project area. MOA and the Irrigation Service would work closely together to demonstrate best agronomic and water management techniques in the Pilot on-farm projects, as well as at local farmer level. Farmers would be trained in both paddy and secondary crops and shown that, with good water management and full quarternarydevelopment, multiple cropping could be undertaken.

Technical Assistance

13. MOA staff would be assisted in preparing the agriculturaldevelop- ment program by a short-term individualconsultant at Jakarta, as well as by consultants at site (Annex 4). Training for MOA staff at all levels would be included in the project (Annex 8). ANNEX 3 Page 1

INDONESIA

IRRIGATIONPROJECT VI

The Project Works

1. The location of the project areas is presented in Map 3627R1. The Cirebon and Rentang Irrigationsystems are shown in Map 10867, together with future proposals for dry season irrigation of these areas. Sampean Baru irrigation system is shown in Map 11197.

Cirebon Irrigation Rehabilitation

2. The project area consists of 56 separate irrigationschemes (Table 1) classifiedas technical (64,000 ha) and semi-technical (25,000 ha) which would be rehabilitated.

3. The project would comprise:

(a) rehabilitationof 117 headworksand weirs;

(b) desilting and rehabilitationof some 450 km of primary and secondarycanals, along with repair of canal structures;

(c) constructionof tertiary and quaternarycanals, drains and structures;

(d) flood protection embankmentsto three rivers;

(e) new drainage canals (about 40 kn) with structures in 12 irrigationsystems, as well as improvementof about 200 km of existing drains;

(f) upgradingof about 300 km of rural access roads, and 55 km of inspectionroads;

(g) 20 pilot on-farm developmentand water management demonstration projects covering a total of 2,000 ha; and

(h) constructionof houses for operators,camp and office buildings for PROSIDA, an AgricultureDevelopment Center and six Rural ExtensionCenters.

4. lleadworksand Weirs. In the 56 irrigationschemes there are 117 diversion structures. The first was built in 1878. Out of 91 masonry ANNEX 3 Page 2

structures, 14 are in bad condition and nine are destroyed. The remainder are in fair conditionbut need extensive repairs. Some of the stream beds are silted and the weirs are buried. The intake and sluice gates have deteriorated through lack of maintenanceand are mostly inoperable. The gearing mechanisms are old and cannot easily be operated manually. Replace- ment of sluice and inlet gates with better gearing on over 100 structures would be included in the project and sluiceways and silt excluders would be constructedor repaired, so that entry of sediment during floods would be minimized.

5. Primary and Secondary Canals. The total length of primary and secondary canals under the 56 irrigationschemes is about 456 km with 1,300 canal structures. The canals are badly silted in the head reaches due to non-operationof silt excluders,and canal banks have collapsed in many places. Many structureson the canals require rehabilitation. In addition to the rehabilitationof canals and structures,steps would be provided at suitable locations to serve as access for domestic purposes and buffalo wallow ponds would be constructed.

6. Tertiary and Quaternary Canals. There are about 2,000 tertiary systems in the project area covering an average of 50 ha. The present ter- tiary canal systems are inadequateand would be increasedunder the project. Distributionboxes would be provided on tertiary and quaternarycanals. The first 50 m of tertiary canal would be constructedby GOI and the rest of the tertiary and quaternary canals and drains would be constructedand main- tained by the water users. PROSIDA would design these canals and drains and construct the masonry structures and head gates. Earth work, however, would be done by the farmers at subsidized cost. The estimate for tertiary and quaternarysystems is given in Table 2. Photo-mosaicmaps at 1:5,000 scale with 0.5 m contour intervals,which are necessary for the design of the systems, are presently being prepared.

7. Drainage. The main drainage problem in Cirebon area is in the coastal plain along Cirebon-Tegalroad and in Cipenas II irrigationarea. The drainage systems and appurtenantstructures have deterioratedto the extent that the original drains are often difficult to locate. The total area for which new drainage (40 km) would be provided is about 10,000 ha. In addition, about 200 km of existing drains would be improved.

8. Flood Protection. Three rivers, Cisanggarang,Cimanis and Cipanas cause flooding in the Cirebon area due to poor embankments. Improvement of embankmentsand some dredging is included in the project.

9. Camps, Offices and Buildings. Offices at Cirebon would be constructedfor PROSIDA. An AgriculturalDevelopment Center, complete with equipment,would be built at Plombon, as well as six Rural ExtensionCenters in strategic areas for farmer training (Annex 2). Houses would be provided for the operators throughout the project area. The project would include rehabilitationof about 35 existing operatorshouses and constructionof about 110 new houses. ANNEX3 Page 3

10. Rural Access Roads and InspectionRoads. The existing rural road network is extensive and adequate, except for the quality of surfacing and maintenance. About 305 km of rural roads would be upgraded under the project. Most of these roads currently have only a light gravel and earth base with no sealing coat. Roads included in the project would be provided with a coarse stone and gravel base and an asphalt sealing coat. They would generallybe 4 m wide and be classifiedfor 3-ton vehicles. The list of roads and their length is given in Table 3, and shown on Map 10867. The cost per km would be about Rp 2.0 million on the basis of similar works carried out in Rentang IrrigationArea. A total of about 50 km of inspection roads and paths for motorcycleswould be built to facilitate 0 & M.

11. Equipment and Communications. Table 4 lists the major equipment and vehicles included under the project.

12. Pilot On-farm Development Projects. 20 pilot projects covering about 100 ha each, consistingof complete tertiary and quaternary canals and drains with attendant control boxes, would be constructedby GOI on farmers' land to demonstratethe benefits of on-farm development. On each pilot project, Provincialand PROSIDA irrigationstaff and MOA would work closely together with farmers to develop best water management and agronomic techniques for both paddy and secondary crops.

Rentang IrrigationSystem

13. Barrage. The existing Rentang Barrage was built in 1916 for the diversion of water from the Cimanuk river and has become obsolete due to river accretion, non-operationif stop-logs and expensive 0 & M. It would, therefore,be replaced under the project by a new barrage at a site about 600 m upstream from the old one. The new barrage would be a reinforeed concrete structurewith electricallyoperated radial gates. The barrage would span 90m and its length would be 600m with rip-rap and gabions both upstream and downstream. Silt excluding devices would be included on both left and right bank intakes. These new intakes would be connected to the existing primary canals by link canals about 700m long, which would also act as silting basins.

14. Tertiary Canals Systems. Construction of the tertiary systems, which were not financed under the previous Credit, would be carried out under the project. Standards would be the same as those for the Cirebon project (para 6).

15. AgriculturalBuildings. Six Rural Extension Centers would be built in strategic areas for farmer training (para 9 and Annex 2). ANNiEX3 Page 4

16. Drainage. In the wet season, about 30,000 ha of low-lying coastal areas suffer from flooding. Existing drains in the flooded area (about 200 km), which were not rehabilitated under Credit 127-IND, would be improved under this project. Aside from providing flood relief, the drains are also used as a source of water supply. In the dry season, however, salt water from the sea backs into the drains, and the people who live along these drains have to travel up to 5 km to find fresh drinkingwater. Each year, many of the drain- age outlets are blocked by drifting sand. Fishermen also often block the drains in the dry season to retain water. These blocked drains and outlets further aggravate flooding at the beginning of the wet season before the flow pressure reopens them. Under the project about 60 km of collector drains would be excavated parallel to the road, and drainage control gates would be constructedat suitable intervals. These drains would become a supply of fresh water in the dry season and, by concentratingflows through the gates, would keep outlets open. The project would include new and improved secondary drains to lead water to the collectordrains. Work on Kumpal Kwista drainage area has recently been started by GOI.

17. Cimanuk Delta. Drainage works in tihisdelta have been started by GOI. The project includes technical assistance for this work (Annex 4).

18. Pilot On-farm DevelopmentProjects. About 20 pilot projects of approximately100 ha each would be constructed to demonstrate tie benefits of on-farm development,as described for Cirebon (para 12).

Sampean Baru

19. Closure Dam, Weir and Intake. A new earthfill closure dam would be constructedacross the Sampean river to divert water over the existing weir. Tne weir and adjacent right bank intake would be remodelled. Tlheweir's side- walls would be raised to ensure that design floods could be safely passed and new intake gates and hoists would be fitted. An access bridge would be built over the weir to provide a crossing of the river. A "fuse plug" would be built into the left bank of the dam to act as a spillway in event of extreme flood conditions.

'0. Canal System. The existing 9 km of primary canal would be reiiabili- tated and 35 km of new canal witlh the necessary flumes and syphons would be constructel. Some 20 secondary canals, totallingabout 120 km, would be constructedwith suitable control structures.

21. Drainage. 'Tkhereare a numb)er of deep ravines crossing thie primary canal and passing through the service area which would provide natural drainage. No major drains would therefore be included.

22. Tertiary Canals. Provision would be made for thieconstruction of tertiary and quaternary canals as in Cirebon/Rentang areas (para 6). ANNEX3 Page 5

23. Roads. A total of 100 km of road would be provided, of wiiich45 km would be along the primary canal. Paths for inspection would be constructed along secondary canals. Standards would be about the same as in Cirebon (para 10). A much higher proportion of roads is included in Sampean Baru than Cirebon, since the former is a new area with few existing rural roads.

24. Pilot On-farm Development Projects. Two such projects on about 100 ha each would be constructed to demonstrate the value of the benefits of on- farm development, as described for Cirebon (para 12).

25. Pilot Pumping Project. A 100 ha pilot pumping project would be constructed on farmer's upland fields which are not more than 5 m above the irrigation supply level. A diesel pump and pipeline would be provided, together with a small canal system for growing high value crops. The pilot scheme would include demonstrationof best agronomic techniques and water management for selected crops.

26. Land Levelling. Some 2,000 ha of land would be levelled using PROSIDA equipment from the Pekalen-Sampean project and farmer's own labor. The area affected lies to the east of the project and detailed investigations of levelling requirements would be made by project consultants during project design stages. Since no details were available at appraisal time, thie amount of land level'ing was estimated by visual inspection only.

27. GroundwaterInvestigation. This part of the project would cover the foreign exchange costs to complete the groundwater investigation in Mediun/Solo area started under Credit 289-IND. The drilling equipment has cost more than expected and its delivery has been delayed. Further costs have been incurred through extension of the consultant's contract. The original cost estimates of US$1.7 million have now increased to US$2.4 million. This project would finance the expected balance after 15 April 1975 of US$500,000 in foreign exchange. ANNEX 3 Table 1 Page 1 INDONESIA

IRRIGATIONPROJECT VI

Details of Areas of Cirebon Irrigation Systems

Irrigation Irrigated Area (ha) Area Irrigation Semi- (Region) No. Scheme Technical Technical Total ------(ha)------I. CILUTUNG 1 Manenteng 7,895 _ 7,895 2 Ciberes Timur 2,976 - 2,976 3 Cijurai 4,492 4,.492 4 Cihue - 524

Sub-Total I. .15363 15.917

II. PEN-PEN 5 CimanisHilir 3,208 - 3,208 6 Ciwado 1,162 - 1,162 7 Situ Patok 2,156 - 2,156 8 KanciHilir - 403 403 9 KanciUdik 7 124 131 10 Ciawi 142 - 142 11 Suba Hilir - 269 269 12 Jaga Hilir - 33 33 13 Jaga Udik 151 - 151 14 Cimanis Udik 1,736 447 2,183 Sub-TotalII. 8,562 1,276 9,838

III. KUNINGAN 15 Darma - 380 380 16 Citambleg 29 357 386 17 Ciherang 109 843 952 18 Cipager 160 376 536 19 Citamba 278 444 722 20 Cilengkrang 304 1,274 1,578 21 Citaal - 341 341 22 Cisanggarung 1,717 1,409 3,126 23 Ciporang 541 309 850 24 Cisande 274 287 561 25 Ciolok 162 577 739 26 CiberesUdik 123 548 671 27 CibatuI 219 89 328

Sub-Total III. 3,936 7.234 11,170 ANNEX3 Table 1 Page 2

Irrigation Irrizated Area (ha) Area Irrigation Semi- (Rteg;ion) No. Scheme Technical Technical Total

IU. PLIJMBON 28 Suba Udik - 115 115 29 Cipager Udik 46 1,298 1,339 30 Soka Udik 504 187 691 31 Cipager Hilir 2,810 - 2,810 32 Sokarajadana 1,249 239 1,488 33 Ciparlgi 1,096 43 1,139 34 Siweringin 839 - 839 35 Jamblang Kanan 1,196 - 1,196 36 Jamblang Kini 1,678 - 1,678 37 Jamblang Udik 509 617 1,126 38 Wlahar 1,365 - 1,365 39 Ciwaringing Hilir5,429 - 5,429 4o Cikemangi 2,269 710 2,979 41 Ciwaringin Udik 380 257 637

Sub-Total IV. 19,370 3.461 22,831

V. MAJALENGKA-SUMEDANG42 Cihe rang Hilir 119 748 867 43 Cikeruh Hilir 3,45 6 598 4,s54 44 Ciawi Hilir 793 - 793 45 Cideres Hilir 1,314 412 1,726 46 Ciherang Udik 504 754 1,258 4i7 Cikeruh Udik 494 19 513 48 Ciawi Udik 10 78 88 49 Cideres Udik 148 257 I405 50 Cilutung Udik - 1,184 1,184 51 Cilutung Timur 3,917 - 39917 52 Cilutung Barat 5,914 - 5,914 53 Setu-Setu - 100 100 54 Ujung Jaya -1.592 1.,592

Sub-Total V. 16,669 5.742 22,411

VI. INDRAMAYUBARPAT 55 Cipanas I - 2,328 2,328 56 Cipanas II - 4.°?20 4,020

Sub-'Total VI. - 6348 6 .48 TOTAL 63_,00 2§615 88,515 ANNEX3 Table 2

INDONESIA

IRRIGATION PROJECT VI

Tertiary Canal Systems - Cost Estimates per ha

Under Subsidized Systems

Item Description Quantitv Unit Rate mount

1 Photomosaic 1:5,000 scale 1 ha 750 750

2 Contour Mapping 0.3 m interval 1 ha 1,500 1,500

3 Survey for tertiary & quarter- nary canals & structures 1 ha 900 900

h Tertiary & sub-tertiarycanal 3 excavation 1/ 12.5 m 100 1,250

5 Quaternary canal excavation 1/ 10 m3 100 1,000

6 Tertiary drain excavatimnl/ 28 m3 100 2,800

7 Quatermary drain excavation ±/ 16 m3 100 1,600

8 Tertiary Box .02 box/ha 0.02 box 150,000 3,000

9 Subtertiary Box .03 box/ha 0.03 box 75,000 2,250

10 Quaternary Box .06 box/ha 0.06 box 40,000 2,400

11 Other structures .02/ha 0.02 unit 74,000 1,500

12 Farm Roads earthwork 1/ 40 m3 100 4,000

13 Land Acquisition 2/ L.S. 2,000

Rounding 50

TOTAL3/ 25.000

1/ Actual market rate for excavation is about Rps 20m3, but under project farmers would only be paid Rp lOOm3 , the balance being their contribution towards the cost of these works.

2/ Amount of acquisition wherever required.

3/ Cost per ha included in Cirebon, Rentang and Sampean Baru components. ANNEX3 Table 3

INDONESIA IRRIGATION PROJECT VI

CIREBON IRRIGATION SYSTESS

List of Rural Roads for Rehabilitation under the project (Shown on Map 10867)

Progran Description Length Year of Construction

1 Losarang - Rajasinga 11 1976-77 2. Rajasinga - Kroya 12 3. Kroya - Kandanghaur 16 4. Conggeang- Ujungjaya 12.5

5. Conggeang- Legok 9.5 1977-78 6. Cijelog- Ujung Jaya 8.5 7. Jatiwangi- Ligung 11 8. Rajagalub - Prapatan 12 9. Bongas - Ligung 11 10. Leuwimunding- Palasah 6.2 11. Prapatan- Budar 1.5 12. Rajagaluh- Bobos 7

13. Gebang - Waled 11 1978-79 14. Plajangan- Cileduk 7.5 15. Cileduk - Losari 12 16. Cileduk - Sindang Laut 17 17. Cipasung - Subang 2t

18. Kadipaten- Jatitujuh 18 1979-80 19. Jatitujuh - Sumber 8 20. Cidahu - G. Karang 3 21. Garawangi - Balong 3 22. Ciwaru - Subang 18 23 23. Kali Tanjung - Sumber 7.5 1980-81 24. Sumber - Mandirancan 6 25. SindangJawa - Mandirancan 6 26. Mundu - Setupatok 5 27. Sindang Laut - Ciawi Gajah 15 28. Putat - Koreak 503 29. Sindang Laut - Pengarengan 5.2 30. Kadugede - Ciniru 11

Total 304.7

Note: 304.7 km (l Rp 2.00 x 106 /kmn Rp 609.4 x 106 (nid-19714 price, which has been adjusted in the main estimates) ANNEX 3 Table 4 Page 1

INDONESIA

IRRIGATION PROJECT VI

Equipment List

Item Description Quantity Rate Amount

Cirebon Irrigation Systems -- Construction Equipment I Survey Drawing office and Laboratory equipment LS 54,000 II Construction Staff Transport

Stations wagons 4 8,000 32,000 4 W.D.Vehicles 8 6,000 48,ooo

Executive vehicles 2 44,ooo 8,000

Motorcycles 30 800 24,ooo

III O&M Equipment

Air compressorsand tools 2 14,000 28,000

Grader (light) 1 30,000 30,000

Rollers 6-8 tons 2 20,000 40,000

Front and loader I 40,000 4O0,000

Dumptrucks 7 8,000 56,000

Hydraulic excavator v cu.yds. 1 40,000 40,000

Welding sets - electric 2 10,000 20,000

Welding sets - gas 2 500 1,000

Generators 50 KW 4 10,000 40,000 Hydrological equipment LS 85,000 85,000

Miscellaneoussmall tools LS 40,000 40,000

1/ Required for project startup and would be procured under the consultant's contract. ANNEX 3 Table 4 Page 2

Equipment List

Item Description Quantity Rate Amount

IV 0 & M Staff transport us$------

Station wagon 1 8,000 8,000

4 W.D.Vehicles 10 6,000 60,000

Motorcycles 35 800 28,000

Bicycles 138 60 8,280

V Tertiary Area - Pilot Projects

Station wagon 1 8,000 8,000

4 W.D.Vehicles 1 6,000 6,000

Motorcycles 8 800 6,1400

Bicycles 2 60 120

Totals I to V 710.800 ANNEX 3 Table 4 Equipment List Page 3

Agricultural Operations

Description Quantity Rate Amount

-- US$ ------

Cirebon and Rentang Irrigation Systems--

Agricultural Developuwnt Center

Station wagons 2 8,joo 16,000

4 W.D. vehicles 26 6,000 156,000

Microbus 1 12,000 12,000

Motorcycles 14 800 11,200

Bicycles 12 60 720

Agricultural District Service

4 W.C. Vehicles 4 6,000 24,000 Motorcycles 350 800 280,000

Bicycles 150 60 9,000

Rural AgriculturalExtension Centers

Motorcycles 36 800 28,800

Bicycles 12 60 720

Sub-total 537,540

Equipment& Furnishing of Centers

Agriculture Development Center L.S. 350,000

Agriculture District Service L.S. 112,000

Rural Extension Centers L.S. 220,000

Village units equipment 100 1,400 140,000

Sub-total 822,000

Total 1,359,540

Rounded 1.36 million ANNEX3 Table 5

INDOWNESI

IRRIGATION PROJECr VI

RENTANGIRRIGATION SXSTM

List of Drainage Schemes

Area Cost of Schemes Benefitted Scheme (ia) (IRp M)-

1. IEipml Kvista Drainage 4,700 370 Work on this is recently started. 2. Ciwaringin Drainage 3,9400 330

3. Area West of Cimanrk River 19,000 460

i. Prawirakepolo Drainge 2,000 285

5. Gebang-Sawit Drairago 1,000 140

6. Wili Kamal-aLi Boboa Drainage 1,800 65

7. Kali Singranla-Lai Bobos Drainge 1,000 16o

Total 32,900 1J810 Million BP

= 4.37 MillioIn U$-

1/ Increased to early 1975 price in main estimate (Annex 6) to Us$4.8 million. ANNEX4 Page 1

INDONESIA

IRRIGATION PROJECT VI

Consulting Services and Technical Assistance

Consulting Services

Cirebon and Rentang

1. Scope of Services. PROSIDA would engage the services of a consult- ing firm with both engineering and agriculturalexpertise to supervise, design and construct all the Cirebon systems and Rentang barrage, as well as to assist in the agriculturaldevelopment plan for the area.

2. PROSIDA and MOA would assign a number of counterpartprofessional and technical staff to work with the consultant'sstaff, and the consultants would be required to provide guidance and on-the-job training to such staff. The foreign consulting firm would be required to associate itself with an Indonesian engineering consulting firm.

3. It is expected that the consulting services would be required from April 30, 1975. Estimated man-monthswould be about 200 foreign and 300 Indonesian, totalling 500 man-months for Cirebon and Rentang. 1,

4. Responsibilityof the Consultants. The consultantswould perform the following functions:

(a) Review existing data available and 1973 feasibilitystudy;

(b) formulate the final project concept;

(c) prepare scope of work, engineering and constructionschedules for completing all necessaryworks in a logical sequence in each irrigation system;

(d) prepare plans, designs, cost estimates, specifications,tender and contract documents, (workingwith PIOSIDA and their Indonesian associates),for local competitivebidding for all civil works in Cirebon Irrigation Systems and foi ICB for Rentang Barrage;

1/ Used for estimating purposes and may be ciianged at implementation. ANNEX 4 Page 2

(e) assist in evaluation of bids and recommendationsfor award of contracts;

(f) assist in constructionsupervision of all civil works;

(g) prepare an C&M manual for Cirebon;

(h) assist PROSIDA and MOA to expand the BIMAS program in the project areas;

(i) assist the local agriculture authorities in agricultural production planning, extension methods and irrigation field agronomy;

(j) assist in establishingthe AgriculturalDevelopment Center and the Rural Extension Centers;

(k) assist PROSIDA and MOA to establish the on-farm demonstra- tion prosects in which crop water requirementswould be evaluated; and

(1) provide on-the-job training for their counterpart staff.

5. ReportJng. The consultants would prepare an inception report within 3 months of commencingwork, which would outline their project plans. They would also prepare quarterly reports for PROSIDA and MOA on progress and problems and, on completion of the project, prepare a final report which would evaluate lessons learned for use in future projects.

6. The consultants would supply their own vehicles and would procure survey and drawing office equipment, laboratory and hydrological equipment (as listed in Annex 3) for the project under the terms of their contract.

Rentang Drainage, Sampean Baru Works and Sadang North

7. Preliminary designs of the proposed Rentang drainage works were prepared by NEDECOunder Credit 220-IND. The NEDECOdrainage expert, whose services would be extended,would assist PROSIDA in the preparationof final designs for these works. Similarly, these consultantspresently employed on Credit 220-IND, which includes Sadang, would be used to prepare detailed designs for Sadang North (6,500 ha). An interim report would be prepared on the best technicalsolution for this small irrigation distributionsystem and submitted to PROSIDA and the Bank before commencing final design.

8. The existing consultant contract (Harza) for the Pekalen-Sampean works in progress under Credit 289-IND, would be extended for design and construction supervision of Sampean Baru irrigation system. Harza would be required to associate with an Indonesian engineering firm. The estimated man-months would be about 42 foreign and 300 Indonesian totalling 342 man- months. GOI would be at liberty to clhoose other consultantsfor Sampean Baru if they so desifed. ANNEX 4 Page 3

Feasibility Studies

9. Madiun Irrigation Systems (130,000 ha). A consulting firm would be engaged to carry out feasibilitystudies for the rehabilitationof the Madiun irrigation systems, consistingof many small systems receiving water from sources around the mountains near the city of Madiun (Map 3627R1). These systems are the last large block of irrigation systems which require rehabilitation in Indonesia. In addition to the rehabilitation studies, the consultants would be required to examine the feasibilityof three possible irrigation storage dam sites, and one multi-purpose dam site which could provide dry season irrigation for part of the Madiun systems. These dams were identifiedby the groundwater consultants (ELC/NipponKoei) during their preliminary investigationin the area.

10. The consultants responsibilitieswould include:

Phase I

(a) identificationof the scope of the work for rehabilitation and the preparation of constructionestimates for the engineeringwork;

(b) identificationof the existing crops grown in the area, and evaluating present yields and anticipatedyields after full development of the proposed project;

(c) conductingagro-economic surveys in conjunctionwith SAE, which would indicate current employmentlevels and incomes from both farms and off-farms. These studies would pay particularattention to identifying size of farms, numbers of land-owners,sharecroppers and landless laborers. Indicationsof present and projected incomes would be included;

(d) preparing cost estimates to establish the technical and economic feasibility of the darns wihicih are located at Sangiran, Pondok, Ngrejeng and Bendo; and

Phase II

(e) continue with detailed planning, design and contract documents as detailed for the consultants in para 4(d) to (1) and paras 5 and 6 on pages 1 and 2 of this Annex.

11. The consultant'sinitial report would follow the FAO Guidelinesof December 1970. It is estimated that about 450 man-monthswould be required for these studies, and the consulting firm would be expected to associated itself with a local consulting firm (about 200 man-months of foreign consul- tants and 250 man-months of local consultants). ANNEX4 Page 4

Cirebon Feeder Canal

12. The consultants (NEDECO/SMEC)who prepared the feasibilitystudies for Cirebon rehabilitationand the Jatigede Dam identified the approximate alignment of a feeder canal to provide dry season irrigation for about 30,000 ha in the Cirebon area. This canal would be supplied from an offtake and weir located about 5 km downstream of the proposed Jatigede Dam (Map 10867). Consultants would be engaged to prepare a feasibility study showing the technical and economic viability of this project. About 250 1/ man-months of consulting time would be required for the study made up of 100 man-months of foreign consultantsand 150 man-months of local consultants' time. The possibilityof engaging an expatriate consulting firm for this work or having the report prepared by the consultantson the Jatigede Dam (being financed by an Australian grant) would be discussed after the project is effective. The scope of work could be expanded to include a feeder canal from the CisanggarangRiver also identified by the previous consultants.

Technical Assistance

Rentang Drainage and River Specialists

13. In the delta of the Cimanuk river in the Rentang area the old river channels have silted up and closed. The coast has accreted and man- made flood relief channels have been constructedover the last 50 years. These channels now suffer from siltation and unstable levees. The DGWRD has staff working on these problems, but they lack the necessary experience to devise corrective measures, which are very complex. Individual expatriate specialistswith delta experience would be engaged under the project to assist the DGWRD. They would consist of a drainage expert and a river engineer, botlh having long experience in delta problems involving siltation of channels, unstable levees and embankments,dredging of channels and coastal accretion. These experts would visit Indonesia for about 6 weeks, initially, to prepare a plan of operations for future tests and action and, thereafter,make periodic visits of inspection as required by DGWRD to examine the effects of their recommendationsand make further plans of operations. A total of 12 man-months for these experts would be provided.

14. The specialist'sterms of reference would cover the following activities:

(a) review all information available would be reviewed and a plan of operations prepared covering necessary tests to be carried out and initial action to be taken;

1/ Used for estimating, may be adjusted by GOI. ANNEX 4 Page 5

(b) recommend measures for stabilizing slopes, combating sedimentation,stopping erosion and other steps necessary to safeguard the agriculturalland and town of Indramayu;

(c) examine the practicalityand economy of reopening Kali Rambatan to much greater flows and preventingovertopping of its levees; and evaluate the need for the proposed new channel via Kamal River;

(d) examine the practicabilityand economy of setting up a continuous dredging program to offset the effects of delta formation and coastal accretion;and

(e) recommend outline designs for the best method of draining this area of the Rentang system.

Soil Conservation Specialist

15. The upper reaches of the Cimanuk river and its tributaries suffer from serious soil erosion and constant silting which directly affect the Cirebon and Rentang project areas and would, in future, affect the Jatigede Dam. GOI has requested technical assistance in carrying out a soil conservationprogram within the Cimanuk catchment. The program would be carried out by MOA, in close cooperationwith PROSIDA. An individualsoil conservationspecialist would be provided under the project for a total of 12 man-monthsbased on a number of short term visits to advise on measures to be taken and follow up visits as required by MOA. He would report to the Directorateof Forests, and work closely with PROSIDA in advising them on the program, and would liaise with local agencies.

16. His terms of referencewould cover the following specific activities:

(a) advise the staff of MOA on their program of stream stabilization,vegetation and forestry belts, new agricultural techniques,crops and terracing;

(b) coordinateMOA's activitieswith those of PROSIDA;

(c) assist with the establishmentof a Cimanuk Catchment Board; and

(d) assist GOI in the preparation of an inventory of soil conser- vation requirements in Java and ultimate staff needs for dealing with these problems.

Agricultural Planning Consultant

17. An agriculturaldevelopment program would be prepared for the project areas within 6 months of Loan signing. While implementationof hNNEX 4 Page 6 the program itself would be assisted by the project consultants,MOA has requestedassistance in preparationof the developmentplan and subsequent review of actual implementation. An individualagricultural planning and management expert would thereforebe provided under the project for a total of 12 man-months. He would report to the MOA and would help the Director General in preparing the development plan. He would visit Indonesia periodic- ally within the first 6 months of the project for periods of about one month each and thereafteras required by MOA, to advise on program implemen- tation.

18. His terms of referencewould cover the followingactivities:

(a) assist MOA staff to prepare a detailed plan of operation for agriculturaldevelopment in the project area and review project agriculturalorganization and operationand management procedures;and

(b) liaise with the existing agriculturaladvisor on Credit 289-IND, review the work of the consultants in Cirebon and assist MOA, in updating statisticaldata covering cropping patterns,yields, production,BIMAS performance,and farmer population and income.

PROSIDA Management Adviser

19. Under Credit 220-IND PROSIDA was provided with three individual experts for O&M, constructionand contract activities,and financial matters respectively. These experts have completed their assignment,except for the O&M expert who will complete his term in June 1975. GOI has requested that a general managementadvisor with overall irrigationand management experiencebe provided to advise the new PROSIDA General Manager on all aspects of PROSIDA operations and all IDA affected rehabilitationprojects. 36 man-monthshave been included for this advisor.

Audio-VisualTraining

20. A program of audio-visualtraining has recently been prepared by consultants for training foremen and working staff on road maintenance. This form of training consists of a series of color-slidesshowing in great detail all the activitiesrequired by foremen and laborers in any particular function. The slides are coordinatedwith a tape recorder program describing the activities in the local language. The DGWRD has requested that similar courses of training be prepared for O&M activities. The project therefore includes 30 man-monthsof specializedconsultant time to advise on the preparationof about 20 courses in O&M activities. The photographsand courses would be prepared in the Surabaya Training Institute under the Chief of Irrigationin East Java. GOI has requested that the consultantsbe the same (JorgensenUSA) as those who prepared similar courses for roadwork since they have the special knowledge of this type of training,as well as Indone- sian experience. ANNEX4 Page 7

Project Benefit Monitoring Specialist

21. In order to provide GOI and the Bank with basic data on the current and future situation regarding crop yields, farm incomes, off-farm incomes, household expenditures,size distributionof farms, numbers of landlords, sharecroppersand landless laborers and other related socio- economic data, monitoring surveys would be included in the project. GOI has agreed that the agro-economicsurveys would also cover the five irrigation projects already financed by the Bank Group.

22. The surveys would be conducted by MOA and, since experience of other such surveys indicate that the type of questionnaire,intensity of study, cost and the organizationor individualsresponsible are vital factors affecting the results of such surveys, an individual specialistwould be provided under the project to advise MOA on these questions. Specifically, he would visit Indonesia for about six weeks twice in the first six months of project implementation to:

(a) advise on the intensity of the surveys;

(b) assist in preparation of questionnairesfor both individuals and village heads;

(c) advise on data processing methods and if necessary arrange computer processing;

(d) help prepare cost estimates for annual surveys covering a ten year period; and

(e) join discussion between GOI and the Bank regarding survey implementation.

Following implementationof the first survey, the specialistwould assist in data processing and analyzing and, thereafter,would pay periodic visits to Indonesia at the annual survey time to monitor progress and check results. A total of 12 man-months would be included in the project for this advisor. ANNEX 5 Page 1

INDONESIA

IRRIGATION PROJECT VI

Water Supply and Requirements

Cirebon Irrigation Systems

1. Records for the past 60 years snIow that the rainfall during tlhe wet season is adequate for the main paddy crop (81,500 iia), and for sugar cane (7,000 ha) as well as for 16,000 ha of paddy, 7,000 ha of sugar cane and about 15,000 ha of secondary crops suchi as maize, pulses, roots and tubers in the dry season.

2. Tne area is mostly served by various rivers, streams and springs originating from Gunong Ciremai (an active volcano). A considerable amount of water comes from springs around Gunong Ciremai. There is little recorded data of river flows and determining the discharges on any empirical basis would not serve a useful purpose since there are so many sources. Consider- ing the performance of different systems in the past, water from existing sources is considered adequate for both wet and dry season irrigation and after rehabilitation, due to greater distribution efficiency, the dry season area may be slightly increased from 40% to 45%.

Sampean Baru Irrigation System

3. Records of Sampean river flows at Situbondo are available for the periods from 1913 to 1932 and 1960 to date. The flow records are derived from the diversions in the catchment area and spills over tne Sampean Weir near Situbondo. Daily discharges have been computed from rainfall data and nydrographic comparison. The computed flows are about 15% less tnan actual flows recorded, and the former have been adopted as a factor of safety.

4. The maximum, minimum and average monthly and annual discnarges are given in Table 1, which should be read in conjunction with Cnart 8966. To determine flows available for diversion at Sampean Baru damsite, the Situbondo site records ihave been transposed and adjustment made for existing irrigation systems. About 15,000 ha are presently irrigated upstream of tlne proposed Sampean Baru diversion weir with water from the Sampean river watershied. About 600 ha are irrigated between Sampean Baru Dam and Sampean Weir. The irrigated area downstream of proposed Sampean Weir is 11,000 ha. These irrigation systems have been given priority over the new Sampean Baru Irrigation System in the water requirement calculations. Overall distribution efficiencies ihave been assumed to average 55%. ANNEX5 Page 2

5. The flows at Sampean Baru are assumed to be 62Z of the flows at Situbondo site in proportion to the catchiment areas. Tnis estimate is con- servative as the rainfall at the higiher elevations is greater and consequently the runoff at Sampean Baru site would ue more. After adjusting for diversions above Sampean Baru and requirements of water to be bypassed for diversion at Sampean Weir, monthly water supply available for diversion at Sampean Baru site nas been determined. These figures are given in Table 1. Small snortages between monthly divertable supplies and actual daily irrigation needs would be provided by the reservoir and storage capacity of the canal system. To reduce further the peak demands, the irrigation deliveries for paddy would be on a rotationalbasis at ten day intervals.

6. Consumptive use of water. ŽMontnlyconsumptive use values niavebeen computed using modified Blaney-Criddlemethod. Chart 8966 sinowsthe computa- tions for rice and secondary crops. It has been assumed tnat improved niign yielding rice varieties of 135 days period would be used. To cover the worst case for water requirements, the whole area was assumed to be planted with paddy in the wet season, and two secondary crops of 90 days would be planted in the dry season. Tne water demands for the proposed service area of 9,800 ha can be met from the estimated available divertable water from Sampean Baru.

Rentang Irrigation System

7. The Rentang area is supplied from the Cimanuk tiver. Water supply and demand was reviewed under Credit 127-IND and there is sufficient water for 100% of the area under paddy in the wet season and about 30% in the dry season in normal years (four out of five). INDONESIA

SAMPEANBARU IRRIGATION SYSTEM

Monthly Dia!chages - Sgopan River at Sampean Weir- and Average MonthlY Divert#ble Water at Saumean Barun

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT .OV DEC

YEAR 1913-1932

Maximum 56.4 67.0 80.0 76.4 55.5 51.5 41.1 24.2 21.7 27.5 32.6 45.3 Minimum 23.7 31.3 31.8 24.4 20.1 20.1 19.6 16.2 14.1 13.3 15.1 17.9 Average2/ 36.2 52.9 49.9 40.1 35.4 29.7 25.0 20.1 18.2 18.6 20.8 27.2

YEAR 1960-1972

Maximum 102.1 121.1 83.2 66.4 53.1 37.9 29.5 18.9 17.0 37.3 30.9 56.4 Mininmm 20.9 20.6 21.4 20.4 15.7 14.6 10.2 9.5 9.3 7.9 8.6 18.7 Average2/ 52.2 55.5 49.3 37.7 26.4 19.3 15.2 12.8 12.7 15.9 18.4 35.1

Average Divertable Water at Sampean Baru Dam Site 22.4 29.2 26.6 20.0 15.4 10.6 7.2 5.6 4.0 6.8 9.8 14.7

Diversion Requirements at SampeanBaru Dam Site as per Chart 8966 7.24 8.26 10.54 5.71 0.96 7.27 7.351/3.62 2.10 2.92 1.95 4.65 ::

1/ Smallshortage during this month can be met from storage water at the dam. 2/ At least 2 years out of 10. ANNEX 6 Page 1

INDONESIA

IRRIGATIONPROJECT VI

Basis for Cost Estimates

1. Consultantsprepared the estimates for Cirebon and Sampean Baru in mid-1973 and, at the same time, PROSIDA prepared the estimates for the Rentang barrage and drainage works. These estimateswere based on actual costs of similar work in adjacent areas.

2. During the appraisalmission in June 1974, the estimates were reviewed,adjusted and then updated to mid-1974 prices, by using multiplier factorsbased on actual cost increasesfor various materials and labor activities. The factorswere 1.65 for major works involving reinforced concrete and imported materials,and 1.45 for works involving mostly labor.

3. After return of the appraisal mission, the cost estimates were updated to beginning 1975 prices by adding a further 10% to each item. At the same time, the foreign currency element was reviewed and adjusted.

4. In the light of experience gained from the current rehabilitation projects, the physical contingenciesfor rehabilitationcivil works were raised to 25%.

5. Since Rentang and Sampean Baru estimates were based on preliminary designs and only limited site investigation, 20% was used for physical contin- gencies on major civil works.

6. Physic(alcontingencies of 10% for equipment, training and consul- tants, etc., were used, since these items are not likely to be much affected by unforeseen circumstances.

7. For expected price increases on civil and other related works in 1975 a 15% increase was assumed, and for each year thereafter, 12%. For equipment,vehicles and communications,the expected price increase percentagewas assumed as 11% in 1975 and 7.5% thereafter (Table 6). These percentagesare based on the Bank Guidelinesof March 29, 1974 and, on the advice of the country economist,the same percentagewas used for both foreign and local costs. ANNEX 6 Page 2

Cost Estimate Tables

Table 1 Cirebon Irrigation Systems Table 2 Rentang Irrigation System Table 3 Sampean Baru Irrigation System Table 4 MiscellaneousServices - Feasibility studies, training and technical assistance Table 5 Details of Cost Estimates for Miscellaneous Services Table 6 Expected Price Increases Table 7 Calculationsfor Schedule I of Loan Documents Table 8 Estimate for Consulting Services for Cirebon, Rentang and Sampean Baru ANNEX 6 Table 1 Page 1

INDONESIA

IRRIGATION PROJECT VI

Cirebon Irrigation Systems

Cost Estimates

% of Foreign Local Foreign Total Local Foreign Total Exchange (Rp MiUllonT - ion

Civil Works

Headworks & weirs 320 910 1,230 o.8 2.2 3.0 70 Primary & secondary canals - 860 1,330 2,190 2.1 3.2 5-3 60 structures Primary& secondarycanals - 1,130 280 1,410 2.7 0.7 3.4 20 earthwork Primary & secondary canals - 1,460 360 1,820 3.5 0.9 4.4 20 bank protection Tertiary canal systems & 1,970 490 2,460 4.7 1.2 5.9 20 structures Drainage system improvement 290 70 360 0.7 0.2 0.9 20 Flood embankments 160 250 410 0.4 0.6 1.0 60 Camps, offices & buildings 140 40 180 0.3 0.1 0.4 20 Inspection roads & culverts 25 25 50 0.1 - 0.1 50 Rural access roads network 280 410 690 0.7 1.0 1.7 60 Pilot areas - water manage- 140 40 180 0-3 0.1 o.4 20 ment & on-farm develop- ment Sub-Total 6,775 4,205 10,980 16.3 10.2 26.5 40

PROSIDA

Equipment& vehicles for - 320 320 - .8 0.8 100 construction& 0 & M Communications 135 135 270 0.3 0.3 o.6 50 Training - 50 50 - 0.1 0.1 100 Cost of O & M during con- 580 150 730 1.5 0.3 1.8 20 struction 1/ Administrationt overhead 1,275 145 1,420 3-1 0.3 3.4 10

Sub-Total 1,990 800 2,790 4.9 1.8 6.7 28

1/ Incremental cost ANNEX 6 Tabe T Page 2

INDONESIA

IRRIGATIONPROJECT VI Cirebon Irrigation Systems

Cost Estimates (Continued)

% of Foreign Local Foreign Total Local Foreign Total Exchange -----(Rp Million)--- ST; ili on ____

Agriculture Support Program

Agriculture development 430 110 540 1.0 .3 1.3 20 center Ruralextension centers 100 30 130 .3 .1 .4 20 Land acquisition 90 - 90 .2 - .2 Equipment,vehicles & - 320 320 - .8 .8 100 communications Operationduring con- 670 120 790 1.6 .3 1.9 15 struction Training 35 55 90 .1 .1 .2 60 Technicalassistance 15 125 140 - .3 .3 90 Sub-Total 1,340 760 2,100 3.2 1.9 5.1 :35 Consultingservices 160 370 530 .4 1.0 1.4 '70

Base Cost 10,265 6,135 16,400 24.8 14.9 39.7 35 Contingencies

Physicalcontingencies 2,195 1,200 3,395 5.3 2.9 8.2 35 Expectedprice increases 7)145 3,860 11,005 17.3 9.3 26.6 35

Total ProjectCost 19,605 11,195 30,800 47.4 27.1 74.5 35 INDONESIA ANNEX6 Table 2 IRRIGATION PROJECT VT

Rentang Irrigation System

Cost Estimates

X of Foreign Local Foreign Total Local Foreign Total Exchange

Civil Works Access Road Works 295 70 365 0.7 0.2 0.9 20 Barrage, intakes & 2,565 2,900 5,465 6.2 7.0 13.2 60 link canals Rest house & other 35 10 45 0.1 - 0.1 20 buildings 100 K.V. substation 70 160 230 0.2 0.4 0.6 70 & electrical lines Tertiary canal systems 2,o40 510 2,550 4.9 1.2 6.1 20 & structures Coastal area drainage 1,405 600 2,0o5 3.4 1.4 4.8 30 works Pilot areas - on-farm 140 40 180 0.3 0.1 0.4 20 development

Sub-Total 6,550 4,290 10,840 15.8 10.3 26.1 40

PROSSIDk Communications 20 50 70 0.1 0.1 0.2 70 Administration& 800 90 890 2.0 0.2 2.2 10 overhead

Sub-Total 820 140 960 2.1 0.3 2.4 1'

Agriculture Support Program Rural axtension Centers 110 30 140 0.3 0.1 0.4 2C Land acquisition 50 - 50 0.1 - 0.1 Enuipment, vehicles & - 330 330 - o.8 o.8 100 communications Operations during con- 680 120 8() 1.5 0.4 1.9 15 struction Training 30 50 80 0.1 0.1 0.2 6c Technical assistance 15 125 14( 0.0 0.3 0.3 100

Sub-Total 885 655 1,54.0 2.0 1.7 3.7 43

Consulting services 20 90 110 0.1 0.2 0.3 80

Base Cost 8,275 5,175 13,450 20.0 12.5 32.5 40

Contingencies Physical contingencies 1,690 1,04( 2,730 4.1 2.5 6.6 4( Expected price increases 3,570 2,350 5,920 8.6 5.8 14.4 4(

Grend Total 13,535 8,565 22,100 32.7 20.8 53.5 4X) ANNEX 6 Table 3

INDONESIA

IRRIGATION PROJECT VI

Sampean Baru Irrigation System

Cost Estimates

% of Foreign Local Foreign Total Local Foreign Total Exchange ----- (Rp MillionT- --- Millon)--

Civil Works Weir & intake structure 135 140 275 0.4 0.3 0.7 50 Earth dam & emergency 705 705 1,410 1.7 1.7 3.4 50 spillway Primary & secondary canal 980 980 1,960 2.4 2.3 4.7 5o canal structures Primary & secondary 470 120 590 1.1 0.3 1.4 20 canals earthwork Tertiary canal systems 220 55 275 o.5 0.2 0.7 20 & structures Drainage system 45 - 45 0.1 - 0.1 - improvement Inspection roads, 205 205 410 0.5 0.5 1.0 50 access roads Surveys & borings 70 65 135 0.2 0.1 0.3 50 Upland irrigation pilot 20 25 45 - 0.1 0.1 50 project Land levelling 320 135 455 0.8 0.3 1.1 30

Sub-Total 3,170 2,430 5,600 7.7 5.8 13.5 44

PROSIDA Houses i communications 115 115 230 0.3 0.3 o.6 50 Land acquisition 70 - 70 0.2 - 0.2 - 0 & M during con- 35 10 45 o.1 - 0.1 20 struction Administration& over- 575 65 640 1.4 0.1 1.5 10 head

Sub-Total 795 190 985 2.0 0.4 2.4 25

Consulting services 135 140 275 0.3 0.3 o.6 50

Base Cost 4,1(00 2,760 6,386o ioo 6.5 16.5 4°

Cont,ingencies Physical contingencies 105 415 1,12\) 1.7 1.0 2.7 4 Expected price :icrease.s 1,930 1 290 ,22 4.7 3.1 2.0( 4o

Grand T'otal 6,735 4,465 11,200 16.4 10.6 27.0 40 ANNEX6 Table 4

INDONESIA

IRRIGATION PROJECT VI

Miscellaneous Services

Cost Estimates

% of Foreign Local Foreign Total Local Fore' Total Exchange ---_(Rp Million)- ----(US Mil ion)----

Feasibility studies of 300 950 1, 250 .7 2.3 3.0 80 future projects

Soil erosion program 205 45 250 .5 .1 .6 20

Balance of groundwater -- 210 210 -- .5 .5 1013 investigation

Training & study tours 40 190 230 .1 .5 .6 90

Technical assistance -- 100 100 -- .2 .2 100

Monitoringsystems for 125 125 250 .3 .3 .6 50 rehabilitationprojects

Mapping 125 415 54o .3 1.0 1.3 80

Base Cost 795 2,035 2,830 1.9 4.9 6.8 7()

Physical contingencies 200 200 400 .5 .5 1.o 50

Expected price increases 455 455 910 1.1 1.1 2.2 5o

Total for services 1,450 2,690 4,140 3.5 6.5 10.0 7() ANNEx 6 Table 5 Page 1 INDONESIA

IRRIGATION PROJECT VI

Details of Cost Estimates for Miscellaneous Services

Rate Local Foreign Total US$ -- US$'000------

Feasibility Studies for Future Irrigation Projects

Madiun Rehabilitation and Storage Dams L.S. 292 1,428 1,720 Cirebon Feeder Canal Studies L.S. 400 800 1,200 North Sadang Detailed Design (12 man-months) 8 72 80

Sub-Total 700 2,300 3,000

Soil Erosion Program (Administered by MOA)

Soil erosionprogram in CimanukCatchment L.S. 500 100 600 Area

Groundwater

Balanceof cost of groundwater study of L.S. -- 500 500 Madiun Area (equipment,consultants and overseas training)

Training

a. O & M Visual Sstem Foreignconsul ants & counterparts L.S. 95 245 240 Equipment- 20 units L.S. 5 5 10

Sub-Total lOO 250 350 b. 0 & M In-service Trainingin Malaysia

20 persons for 3 months each = 750 -- 45 60 man-months 20 persons to and from transport Jakarta to Singapore 160 -- 3 3 Other Miscellaneous Expenses L.S. -- 7 7 Sub-Total 55 55 INDONESIA ANNEX6 Table § IRRIGATIONPROJECT VI Page 2

Details of Cost Estimates for Miscellaneous Services (Continued)

Rate Local Foreign Total USN 00 )-

Training(continued)

c. Senior Study Tours

6 persons for 2 months each = 1,250 -- 15 15 12 man-months 6 persons to and from transport 650 -- 5 5 Other MiscellaneousExpenses L.S. -- 5 5 Sub-Total 25 25

d. Post-GraduateTraining

6 persons for 12 months each = 1,200 -- 85 85 72 man-months 6 persons to and from transport 1,600 -- 10 10 Other MiscellaneousExpenses L.S. -- 5 5

Sub-Total 100 100

e. OverseasTraining 6 persons for 3 months each = ------no charge------18 man-months

6 persons to and from transport 1,200 -- 23 23 Jakarta to Hawaii Other MiscellaneousExpenses L.S. -- 7 7

Sub-Total -- 30 30

Treining Sub-Total 100 460 560

TechnicalAssistance

a. One project maneger - expatriate for 2,500 -- 90 90 PROSIDA- 36 months b. Two temporaryduty drainage& river 4,500 -- 54 54 expertsfor Rentang- 12 man-months c. One soil erosionexpert - 12 months 4,500 -- 54 54 d. To and from travel expenses & misc. L.S. -- 42 42

Sub-Total 240 240

MonitoringSystem (Administeredby MOA) Agro-economicsurveys for IDA/Bank -- 300 300 600 Irrigation Project Areas

Mapping -- 300 1,000 1,300

Base Cost 1,900 4,900 6,800 Physicalcontingencies 5oo 500 1,000 Expectedprice increases 1,100 1,100 2,200

Total Cost 3,500 6,500 10,000

1/ Includestechnical assistance cost. INDONESIA

IRRIGATIONPROJECT VI 1/ Expected Price Increases

79/80 80/81 Total Indonesian Fiscal Year 75/76 76/77 77/78 78/79

Estimated Annual Percentage Increase 12 Civil Works 15 12 12 12 12 7.5 Equipment 11 7.5 7.5 7.5 7.5 ------(UST Million)------_____

Cirebon Civil Works .06 1.17 3.53 5.41 7.47 8.4& .07 Equipment .04 .06 .10 .09 .08

Total .10 1.23 3.63 5.50 7.55 8.55 26.56

Rentang Civil Works .20 1.77 5.56 4.59 2.o6 .20 - Equipment .02 .06 - - -

Total .22 1.83 5.56 4.59 2.06 .20 14.46

SampeanBaru Civil Works .08 1.06 2.74 1.94 1.83 .10 Equipment - .02 .01 - - -

Total .08 1.08 2.75 1.94 1.83 .10 7.78 .05 2.20 Miscellaneous Services .4o .80 .45 .45 .05 8.9C 51.00 Total Expected Price Increases .80 .4.94 12.39 12.48 11.49

1/ Based on Bank Guidelinesdated March 29, 1974. Increases calculated by compounding the increase in prior year and one-half the rate of increase in the Xl estimatedannual percentage c4 year concerned. ANNEX 6 Table 7 Fage 1

INDONESIA

IRRIGATION PROJECT VI

Calculation for Schedule I of Loan Documents

Costs Category Total Foreign Loan Aimount ------llion?-

I. Civil Works- (PROSIDA)

Cirebon 26.5 10.2 Rentang 26.1 10.3 Sampean Baru 13.5 5.8 bcpectedprice increases 17.9 14.7

Sub-Total 84.o 41.0 41.0*

* Disbursementswill be 50% of total cost.

II. 0quipment, Vehicles & Commnzications(PROSIDA)

Cirebon 1.4 1.1 Rentang 0.2 0.1 Sampean Baru 0.3 0.3

Sub-Total 1.9 1.5 2.5*

* Disbursementswill be 100% of actual foreign expenditures.

III. Groundwater(DGI-JRD) 0.5 0.5 0.5*

* Disbursementswill be 100% of actual foreign expendttures.

IV. AgriculturalSupport Program (MOA)

(i) Civil works 2.7 0.6 (ii) Equipment,vehicles 1.6 1.6 & communications (iii) Technical assistance 1.0 o.8 * training (iv) Monitoring survey o.6 0.3

Sub-Total 5.9 3.3 5.5*

* Disbursementswill be 100% of actual foreign expendituresand 50% of other costs.

1/ Consists of civil works contracts,tertiary development,pilot pro- jects and PROSIDA buildings. kNNEX 6 'TIble 7 P.ige 2

INDONESIA

IRRIGAT'LIONP1tOJECT VI

Calculation for Schedule I of Loan Documents (Contimned)

Category Costs Total Foreign Loan Amount ------(US M ilion)------

V. Consulting Services, Technical Assistance & Training (PROSIDA)

Consultants 2.3 1.5 Feasibility study 3.0 2.3 Training 0.7 0.6 Technical assistance 0.2 0.2

Sub-Total 6.2 4.6 6.5*

* Disbursements will be 100% of actual foreign expenditures.

VI. Mapping (DGWRD) 1.3 1.0 1.0*k

* Disbursements will be 80% of total costs.

VII. Unallocated

Physical contingencies 18.5 6.9 Balance of expected pri.ce 33.1 4.6 8.o increases

TOThL 65.0

NOTE, 1: Figures abstracted from Tables 1 throughl 4.

NOTE 2: Majority of expected price increases added to civil works.

NOTE 3: Other expected, price inereases added as follows: Cat II (1.5 + 1.C1 = 2.5), CEt IV (3.3 + 2.2 = 5.5), Cat V (4.6 + 1.9 = 6.5), balance held. in Cat VII. ANNEX 6 Table 8

IONESIA

IRRMAT IJN PROJECT VI

Estimate Euild-up for Consulting Engineering Services for _RntasV, Cirebon & Sampean Baru

Cirebon & Rentang Rate Amount - (,Us) ------Foreign Consultants

1 Irrigation Engineer & Teamleader 48 man months 6,000 288,000 3 Design Engineers 60 man months 6,000 360,000 1 Construction Supervisor 36 man montba 6,000 196,000 Temporary Duty Personnel L.S. 250,000 3 Agriculturists - 36 man-months 6,0o0 196,000 Local Consultants

10 Indonesian consultants 300 man months 1,000 300,000 Miscellaneous L.S. 110,000

Total Cost 1,700,000

(i) Proportionate cost for Cirebon System 1,400,000 (ii) Proportionate cost for Rentang System 300,000

SaDpean Baru

Foreign Consultants

1 Senior Supervisor 12 months (part-time) 6,000 72,000 1 Design Supervisor 6 months (part-time) 6,000 36,ooo 2 Design Engineers each 12 months = 24 man months 6,000 144,000 Temporary £ity Personnel L.S. 128,000 Local Consultants

10 Local Engineers 24 months each = 240 man months 1,000 240,000 5 Local Surveyors 12 months each 5 60 man months 500 30,000 Miscellaneous 50,000

Total Cost 700,000

Note: The above were used for estimating purposes and may be modified by GOI and their consultants at project implementation. ANNEX 7 Page 1

INDONEIEA

IRRIGATIONPROJECT Vt

Schedule of Expenditures and Disbursements

A. Schedule of Expenditures

Indonesian Fiscal Year Total Item 75/76 76/77 77/78 78/79 79/80 80/81 Cost =_ ------(Uss Million- - Cirebon Rehabilitation 1.8 7.1 13.7 15.9 18.1 17.9 74.5

Rentang--AdditionalWorks 3.6 10.7 20.8 13.1 4.9 .4 53.5 Sampean Baru IrrigationSystem 1.2 5.9 9.9 5.6 4.2 .2 27.0

MiscellaneousServices 2.5 3.9 2.0 1.2 .2 .2 10.0 Total 9.1 27.6 46.4 35.8 27.4 18.7 165.0

Total Anmmal 0 & M Costs ------(US$ 000) ------Cirebon 180 220 270 360 440 560 Rentang 200 240 280 370 460 5jo SampeanBaru 20 25 30 40 50 65

(1980/81 representsfull cost at project completion.) ANNEX 7 Page 2

INDONESIA

IRRIGATION PROJECT VI

Cirebon Irrigation Systems

Estimated Schedule of Expenditure

Indonesian Fiscal Year Total Item 75/76 76/77 77/78 78/79 79/80 80/81 Cost ------US$ Million)------

Civil works - 2.1 6.3 6.4 5.9 5.4 26.1

Equipment,vehicles & .8 .4 .4 .3 .2 .1 2.2 communications

Training .1 .1 .1 - - - 0.3

Cost of 0 & M during construction/ .2 .4 .7 .7 .8 .9 :3.7

Pilot area on-farm development - .1 .1 .1 .1 - (c.4 projects

Agricultural support program .2 1.5 .3 .2 - - 2.2

Administration & overheads .1 .3 .8 .8 .8 .6 3.4

Consulting services .3 .3 .3 .3 .1 .1 1.4

Base Cost 1.7 5.2 9.0 8.8 7.9 7.1 39.7

Physical contingencies - .6 1.1 1.6 2.7 2.2 8.2

Expected price increasos .1 1.3 3.6 5.5 7.5 8.6 26.6

Total Project Cost 1.8 7.1 13.7 15.9 18.1 17.9 74.5

1/ Incremental cost ANNEX7 Page 3

INDONESIA

IRRIGATIONPROJECT VI

Rentang Irrigation System

Estimated Schedule of Expenditure

Indonesian Fiscal Year Total Item 75/76 76/77 77/78 78/79 79/70 80/ 31 Cost _------(US$Million)------

Civil Works

Access road works .2 .7 - - _ .9 Barrage - .3 8.8 4.1 - 13.2 Camp offices & other buildings .1 - - - _ - .1 100 K.V. sub-station & electric .1 .5 - - - - .6 lines Tertiarycanal systems& structures .3 1.4 1.4 1.5 1.5 6.1 Coastalarea drainageworks .8 .9 1.0 1.1 1.0 _ 4.8

Sub-Total 1.5 3.8 11.2 6.7 2.5 - 25.7

Pilot areas - on-farm development .1 .1 .1 .1 _ - .4 Communications .1 .1 - - - - .2 Agriculture .7 1.0 1.0 .6 .3 .1 3.7 Administration& overheads .2 .5 .7 .6 .1 .1 2.2

Sub-Total 1.1 1.7 1.8 1.3 .4 .2 6.5

Consulting services .2 .1 - - - - .3

Base Cost 2.8 5.6 13.0 8.0 2.9 .2 32.5 Contingencies

Physicalcontingencies .6 3.3 2.2 .5 - - 6.6 Expectedprice increases .2 1.8 5.6 4.6 2.0 .2 14.4 Total ProjectCost 3.6 10.7 20.8 13.1 4.9 .4 53.5 ANNEX 7 Page 4

INDONESIT.

IRRIGATIONPROJECT VI

Sampean Baru Irrigation System

Estimated Schedule of Expenditure

Indonesian Fiscal Year Total Item 75/76 76/77 77/78 78/79 79/80 80/8f Cost _-tUS$ Million)7ft----:------

Civil Works

Weir & int;ake structure - o.4 0.3 _ - _ 0.7 Earthdam & spillway - 1.5 1.9 - - - 3.4 Primary canals & structures - 1.4 2.1 1.6 1.0 . 6.1 Tertiary canal systems & structures - - 0.3 0.2 0.2 - 0.7 Drainage system - - - 0.1 - - 0.1 Inspection roads & access roads - 0.2 0.2 0.3 0.3 - 1.0 Surveys& borings 0.2 0.1 - - - - 0.3 Land levelling - - o.4 o.4 0.3 - 1.1 Upland irrigation pilot project _ _ _ 0.1 - - 0.1

Sub-Total 0.2 3.6 5.2 2.7 1.8 -- 13.5

Houses & communications 0.2 0.2 0.1 0.1 - - 0.6 Land acquisition 0.1 - 0.1 - _ - 0.2

0 & M during construction - - - - - 0.1 0.1 Adrministration & overheads 0.3 o.4 o.4 0.2 0.2 - 1.5

Sub-Total o.6 o.6 o.6 0.3 0.2 0.1 2.4

Consultingservices 0.2 0.1 0.1 0.1 0.1 - 0.6

Base Cost 1.0 4.3 5.9 3.1 2.1 0.1 16.5 Contingencies

Physical contingencies 0.1 O.5 1.2 o.6 0.3 - 2.7 Expectedprice increases 0.1 1.1 2.8 1.9 1.8 0.1 7.8

Total Project Cost 1.2 5.9 9.9 5.6 4.2 0.2 27.0 ANNEX 7 Page 5

INDONESIA

IRRIGATION PROJECT VI

Miscellaneous Services

Estimated Schedule of Expenditure

Indonesian Fiscal Year Total Item 75/76 76/77 77/78 76/79 79/6 650781 Cost --- _------(Us$ 'oo' F-

Feasibility studies of future 1,200 1,500 300 - - - 3,000 project

Soil erosion program 150 150 150 150 - - 600

Balance cost of groundwater 200 300 - - - - 500 investigation

Training & study tours 90 150 160 160 - - 560

Technical assistance 90 90 60 - - - 240

Monitoring systems 100 100 100 100 100 100 600

Mapping 300 500 500 - 1,300

Base Cost 2,130 2,790 1,270 410 100 100 6,800

Physical contingencies - 300 300 400 - - 1,000

Expected price increases 400 800 450 450 50 50 2,200

2,530 3,890 2,020 1,260 150 150 10,000

Total Cost (US$ Million) 2.5 3.9 2.0 1.2 .2 .2 10.0 ANNEX7 Page 6

INDONESIA

IRRMGATIONPROJECT VI

B. Schedule of Disbursements

Bank Fiscal Year Accumulated & Semester Disbursements (US$ Million)

1976 1st 1.0 2nd 2.5

1977 1st 6.o 2nd 11.0

1970 19.0 2nd 27.0

1979 st5 34.0 2nd 40.0

1980 ST o45.o 2nd 50.0

1981 1st 55.0 2nd 6o.o

1982 1st 63.0 2nd. 65.0 AiNEX 8 Page 1

INDONESIA

IRRIGATION PROJECT VI

Training

1. There is a shortage of trained and experienced personnel in almost all agriculturaland irrigation activities in Indonesia. Those trained prior to World War II are either retired or nearing retirement and tnere is a severe shortage of qualified personnel to replace them and to staff new positions. Consequently,more than the usual amount of staff training is provided in tnis project.

Irrigation Training

2. The Ministry of Public Works and Electric Power (MPEP) operates two institutes -- the Bandung Technical Academy (Akademi Teknik Pekerjaan Umum and Tenaga Listrik) and the Surabaya Training Institute. Formerly, the Academy gave only formal academic courses towards degrees in civil, electrical and mechanical engineering and architecturebut, since 1969, at the request of the DGWRD it has provided three short refresher courses for irrigation sectional and sub-sectionalofficers and a course for irrigation construction foremen. The courses last for a period of three months, training about 100 persons in total.

3. The Surabaya Institute was established in 1970 with the sole purpose of training old and newly recruited irrigation sub-sectional officers and field foremen (Pengamat). The course for new recruits comprises three months of classroom study and nine montns of actual field work in an operating irrigation project. The course for officers who have already been in service a few years, consists of three months classroom study only. Each of the courses trains about 40 men. Local training in these institutes would continue under the DGWRD's program from GOI funds. The training proposed under the project is as follows:

4. Audio-Visual 0 & M Training. A program of training with audio- visual systems and the necessary equipment would be prepared at the Surabaya Training Institute where facilities already exist. Foremen (Pengamat) and sub-foremen (Jurus) would be given audio-visual training for a period of one month all over Indonesia and nine months of actual field work. Foreign consultants experienced in this field (R. Jorgensen, USA) would lnelp prepare the program (Annex 4). Once the tapes and coordinated slides have been prepared, thiey would be duplicated and distributed througnout the country. About 20 courses would be prepared covering all aspects of 0 & M work. ANNEX 8 Page 2

5. 0 & M In-ServiceTraining. Some 20 Provincial chief and section irrigationengineers would be sent overseas for 0 & M in-service training for a period of 3 months each. They would work on selected systemswith their equivalent level officers. A suitable training place would be Malaysia where there are no language problems and 0 & M is of a high standard.

6. Study Tours. Six senior engineers would be sent for study tours in neighboring countries for a period of two months each, and 6 middle-level engineers would be sent for training at the East-West Center at Hawaii or other suitable institution. DGWRD would select the engineers and they would be sent in the early years of project implementation.

7. In-service Planning and Design Training. The foreign consultants to be engaged under the project would provide training to their counterparts in planning, design and construction(Annex 4). Under the terms of the reference of the consultantsfor Cirebon, Rentang and Sampean Baru, they would be required to associate themselveswith local Indonesian consulting firms. This would uplift the capacity of these firms and their staff.

8. Post Graduate Training. The DGWRD would select six post graduate level engineers qualified in planning and design. They would be sent for training overseas for a period of 12 months each to work at selected institu- tions or with suitable firms.

Agricultural Training

9. MOAis responsible for agricultural training below university level. Senior AgriculturalHigh Schools, of which there were 96, are being expanded and equipped under Credit 288-IND, and 14 new such schools should be operational in 1977. Student output would then be about 900 per annum. The Institute Pertanian Bogor (IPB) provides three-monthcourses for MOA staff in specialized fields, i.e., rice production,plant protection,etc., as subject matter specialists. Training of some 35 Provincial agriculturalists .as subject matter specialistswould be included in the project.

10. Eight MOA senior staff working on the project would be sent overseas for courses of about three months duration to study their particular speciality, i.e., rice production techniques,multiple croppings, rice agronomy, plant protection and farmer organizations.

12. Training in modern agriculturalpractices would be provided under the project for all agriculturalofficers and extensionworkers working at the sub-district(Kecamatan) and village (Desa) levels in the project area. Subjects to be covered in the trainingwould include: (a) characteristicsof new rice varieties and some important upland crops and modern agricultural practices for these crops; (b) irrigationwater management; (c) the use of fertilizersand pesticides;and (d) methods and techniques of approaching, reaching and gaining cooperationof the farmers. The training courses would last about one month and would be conducted at the ADC and in Rural Extension Centers, where farmers would also be trained. ANNEX9

INDONESIA

IRRIGATIONPROJECT VI

Crop and Farm Budgets

Tne present and projected cropping patterns are given in Annex 1. Tables attached to this Annex include the following for each project area:

(a) crop production costs under present and future "with" project conditions (Table 1). Present costs are based on the results of interviews in the area during appraisal. The input levels for future "with project" conditionsare mainly based on recommendationsby the AgriculturalExtension Services of the Ministry of Agriculturewith minor modification,and on assumptions of increased mechanizationof threshing and some introduc- tion of more efficientharvesting by sickles;

(b) monthly labor requirementsare based on present and proposed cropping calendars (Table 2). It is assumed that there would be no major change in the method of land preparation under the project, while there would be an increase in the labor requirements for crop management, which covers such activities as weeding, fertilizer and pesticide application, harvesting and water control practices;

(c) crop budgets uader present and future conditions "with" the project (Tables 3-5).

(d) farm budgets for typical family farms of 0.25 ha, 0.5 ha and 1.5 ha (in Cirebon/Rentang) or 1.0 ha (in Sampean Baru) (Tables6-8). The budgets are calculated on a cash flow basis and only hired labor has been costed. The monthly requirementsfor hired labor was calculatedby comparing the labor requirements with the availability per farm of a maximum of 40 man-days/month of family labor. Land taxes are estimated at Rp 6,000/ha at full developmentof which Rp 2,600/hawould be for 0 & M of the irrigation systems. About 30% of the farmers in the Cirebon and Rentang project areas are sharecroppers. Tnis tenure situation has been taken into account in the analysis. The budgets are based on projected market -rices in Indonesiaexpressed in 1974 constant prices. The following symbols are used in the tables: Present (P); Future or full developmentwith project (W). INDONESIA

IRRIGA5TION PROJECT VI

Crop Production Cost

Local Variety Paddy WYV Padd

Wet Season Wet Season Dry Season P W p W p W

Cash Inputs/ (Ro/ha)

Cultivation 7,500 7,500 7,500 7,500 7,500 7,500 Seed 6,400 (2,000) 2,600 5,600 (1,800) 1,900 5.600 (1,800) 1,900 Fertilizer 2,400 (800) 7,600 12,000 (4,000) 12,000 11,400 (3.800) 12,000 Agrn-chenicals - 3,500 6,600 (2,200) 9,000 6,600 (2,200) 9.000 Har.esting 9,000 (3,000) 6,500 16,000 (5,600) 12,000 15,000 (5,000) 12,000 Other 300 6000 200 600 300 600 Interest (900) (1,300) (2,800) (1,300) _ (2,700)

Total Cash Inputs 25,600 (14,500) 28,300 (30,100) 48,600 (22,700) 43,800 (46,600) 46,400 (21,900) 43,000 (45,700)

Labhr Input (nan-days/ha)

Land Preporatio3/ 44 44 44 44 44 44 Sowing, Nursery and Planting 36 36 38 38 36 38 Crop Management 30 45 55 65 55 70 Waryesting and Threshing 45 55 50 70 50 70

Total Labor Inputs 155 Ito 187 217 190 222

1/ Ecoonoic prices bhsed on world nanket prices for rice and fertili-er for use in eco-nmic analysis. Figures in parentheses ore financial prices preyailing at appraiail for use in financial analysis. Costs at present ore higher than those in future, because world narket prices fnr rice (need) and fertiliners are projected to fall (at 1974 constant prices).

2/ Based on the fallouing asaunptions at full developnent: a) Cultivation - 40% of the paddy lands by bhllocks at the rental rate of Rp5O0 per five hour working day, and 60% by hund lahor. b) Seed ruts - 35 kg/ho of local variety and 25 hg/ha of HYV. c) Fertilioer - 100 kg/ha of Urea and 20 kg/ha of TSP for local variety,and 150 kg/ha of Urea and 40 kg/ha of TSP for iiVY. Costed at Rpp210/kg for econanic analysis, and Rp4O/kg for fare budget at present, and at Rp63/kg for both ecnonoic and financial analyses in the future. d) Agro-chemicals - 0.5 lit./ha of Diazinon and 0.2 kg/ha of Zinc Phosphate for local varietyand 1.5 lit./ha of Diazinon and 0.3 kg/ha of Zien Phosphate for HYV. e) Harvesting - Mechanical threshing, transport and drying facilities, rested at 5% cf the production value. f) Other - 0 &IM charges for the ninor irrigation systeas and other costs. . g) Interest - Ass-uied interest of 77.per year of production credit for 7 nonthn on 90% of cash inputs. A

3/ EIcluding labor handling bullo-ks, the cost of which is included under cash inputs. INDONESIA

IRRIGATION PROJECT VI

Crop Production Cost-'/

Soyabean Before Wet Season Rico After Wet Season Rice Sugarcane

2/PW Cash Inputsa (Rp/ha)

Cultivation - - 90500 95000 Seed/Pla ting Material 4,800 5,900 4,800 5,900 29,000 (11,000) 10.500 Fettilirer - 1,300 - 2,200 42,000 (14,000) 22,000 6,000 Agro-chemicals - 500 _ 1,000 6,000 (3,500) Harvosting-- OHert 150-- 42,000 (16,000) 19,000 Other 100 200 300 600 13,000 (70,000) 95,000 Interest (500) (700) (500) (900) (13.000) (17.000)

Total Cash Inputc 4,900 (5,400) 8,300 (9,000) 5,100 (5,600) 9,700 (10,600) 141,500 (138,000) 162,000 (179,000)

Labor Inputs (nan-days/ha) 120 Land P-p-tion 20 30 20 30 120 100 Sewing, Planting and Nuroery 15 20 15 15 100 140 Crop Mlanagement 20 30 35 45 110 170 Harvesting 20 30 30 40 130 530 Total Labor Inputs 75 100 100 130 460

at appraisal for use in fans budget a-alysis. Costs at present are 1/ Economic prices based on world market prices for crops asd fertilioet for use in economic analysis. Figures in parentheses are financial prices prevailiog higher than thoso in the fature, bec.ase world market prices fot crops (sed) rod fertilizers are projected to fall (at 1974 c.ostant prices).

2/ Based as the following aossuptions at fil1 development: a) Cultivation - 100% by hand labor for soyabetn and 50% by bullock for sugarcans. b) Seeding rate - yoyahea.; 45 kg/ha, costed at 130 Rp/kg. Planting rate - sug=rcane; 1 ton/ha/y-ar of cane, costed at 10,500 Rp/ton/year. c) Fertilier -soyabear; DAP 20 kg/ha ie the wet season and 35 hg/ha in the dry Season. - sugarcane; Urea 250 kg/ha and TSP 100 kg/ha. Costed at Rp 63/kg. d) Agro-chemicals - lamp sun. e) Other - 0 & 11 charges for the niner irrigation systems and other roots. f) Interest - 10% of production credits on 90% of cash inpots for soyabe-n, and 15% fec 18 months on 70% of cash inputs for sugar cane.

3/ Excloding laoho handling bulonks, the cost of which is included onder cash inputs. INDONESIA

IRRIGATION PROJECT VI

Crop Production Costsl/

Con C-eeva Cotton (Sced) Wet Season Wat Season Dry Seosoa Dry Se.o.. p W P WI P SW P W Cash Inpouts (np/ho)

Cultivotion 5,000 6,000 1,000 _ 3,000 - 5,000 6,000 Soed/Plantieg Mater-lo 1,300 (1,100) 1,500 400 - 400 - 6,200 4,600 Fertilizar 6,000 (2,000) 5,700 - 1,200 (400) - 18,000 (6,000) 9,400 Agro-chnontcols - 2,500 - 6,000 (2,000) 6,000 Humps tiep Oth-r - 600 - 1 ,000 (10000) 20,000 Intorast (600) (1,100) (1 (2600) (4.000)

Total Canh Inputs 12,300 (8,700) 16,300 (17,400) 1,400 (1,500) 4,600 (4,100) - 53,200 (39,800) 46,000 (50,000) Labor Inputs (nan-dove/ho)

Lsnd Preporation 20 20 10 15 40 40 sowing/Pla-ting 10 15 2 - 2 - 15 15 Crop Maeage-seet 35 45 8 - 10 30 50 Harvesting 25 35 10 25 - 35 60

Total Labor Iepute 90 115 30 - 52 _ 120 165

I/ Economi prices bhsed 00 world narket pricoa for -ru, cotton (eod), and f-rtili-er fot con Sn economi. onalystn. Figures in parentheses are ficoncial prices prevailing at appra-ial fo-se in farn budget analysi-. Costs at pr-s-nt a- high-r than those in fuurer, becouse world norket prices for crop (seed) and fertilizee- are projected to fall (at 1974 constant pricos).

2/ BDsed on the followieg aetetapti-ne at full dovelop-ent: a) Cultivation - 50%. of tho landn propared by bullocks at the rental rate of Rp500 pun fiv- hbor working day, and 50% by haud labor. b) Sped rate - corn; 20 kg/ba, costed at 75 Rp/kg. Cotton:; 0 kg/ha, contod at 230 Rp/kg. C.asa.v:; Iup stu for planting rateria., r) Fertili-er - corn; Urea 70 hg/ha and TSP 20 kg/ha. Cotton; DAP 150 kg/ha. Coatid at 63 Rp/kg. d) Agro--heiralu - loop sun, e) Other - O & M charges fur the rinur irrigation synste= und othbr route. f) Intereat - 10% 00 pr-du-ti-n redits fur 70% of ranh inputs.

3/ Eicluding labor haudling bull:ckn, the root of which in included under rc-h inpun.t INDONESIA

IRRIGATION PROJECT VI

Monthly Labor Requirements (=an-dayu/ha)

Jan Feb Mar Apr Ma Jun Jul Aug Oct Nov Dec Total Wet Sea ion Local ar. Paddy P 36 5 15 40 5 _ _ _ _ _ 15 39 155 w 36 6 17 40 10 - _ _ _ _ 15 39 163 W 36 10 20 45 15 _ 15 39 180

HYVPaddy P 53 10 20 45 5 - - - - _ 15 39 187 Wd 53 10 25 45 13 - _ _ _ _ 15 39 200 W 55 13 30 50 15 _ _ _ _ _ 15 39 217 Second. Crop P ------20 15 10 10 20 75 (Soyabean) - - - - - 25 15 12 13 25 90 w - - _ _ - - 25 25 15 15 30 110 Corn P 13 12 25 _- - - - 20 20 90 W 13 12 28 - _ _ _ _ _ - 20 22 95 W 13 13 37 - ______20 30 115 Cassava p 6 - - 2 4 4 4 _ - - 10 30 W, 6 - _ 2 4 4 4 - 10 30

W - - - - _ - ______

Dry, Season HYV Paddy P - - - - 15 39 55 15 16 40 10 - 190 W- _ _ _ 15 39 55 17 18 45 13 - 202 w - _ _ _ 15 39 60 18 20 55 15 - 222

Cassava p 3 - - 17 11 - - 3 7 7 4 - 52 Wd 3 - - 17 U - - 3 7 7 - 52 W - - - ______

Second. Crops P - - - 10 25 15 10 10 30 - _ _ 100 (Soyabean) - - - 10 25 20 13 12 35 - - - 115 W - _ _ 10 30 20 15 15 10 _- - 130

Cotton P - - - 40 20 10 8 7 10 25 - - 120 W - - 40 20 10 10 10 10 27 - - 127 w - - - 40 20 15 15 15 15 45 - - 165 Sugar Cane I 7 7 17 53 98 100 77 46 24 17 7 7 460 W 7 7 17 55 1o 110 80 46 24 17 7 7 480 W .0 10 23 55 lr 110 87 K3 33 20 10 10 530 INDLONESIA

IRRIGATION PROJECT VI

Cirebon: Crop Budgets'l/

Local Variety Paddy HYV Paddy (Wet Season) HYV Paddy (Dry Season) P W P w P W

Yield (ton/ha) 1.5 2.3 2.8 4.5 2.5 4.2 Farm-gate price (Rp'000/ton) 40.0 53.0 40.0 53.0 40.0 53.0 Gross Value of Production (Rp'000/ha) 60.0 121.9 112.0 238.5 100.0 222.6 Production Costs2/ (Rp'OQO/ha) 14.5 30.1 22.7 46.6 21.9 45.7 Net Value of Production-. (Rp'000/ha) 45.5 91.8 89.3 191.9 78.1 176.9 Labor Requirements (man-days/ha) 155 180 187 217 190 222

Soyabean (Wet Season) Soyabean (Dry Season) P W P W

Yield (ton/ha) 0.4 0.8 0.7 1.2 Farm-gate Price (Rp'000/ton) 130 104 130 104 Gross Value of Prqduction (Rp'000/ha) 52.0 83.2 91.0 124.8 Production Costs.2/(Rp'OQ0/ha) 5.4 9.0 5.6 10.6 Net Value of Production2? (Rp'000/ha) 46.6 74.2 85.4 114.2 Labor Requirements (man-days/ha) 75 110 100 140

1/ Financial costs and prices based on Annex 9, Table 1

2/ Excluding labor costs.

'A1 INDONESIA

IRRIGATION PROJECT VI

Rentang: Crop Budgets./

Local Variety Paddy HYV Paddy (Wet Season) HYV Paddy (Dry Season) P w P W P w

Yield (ton/ha) 1.7 2.3 3.0 4.5 2.8 4.2 Farm-gate Price (Rp'000/ton) 40.0 53.0 40.0 53.0 40.0 53.0 Gross Value of PTrduction (Rp'000/ha) 68.0 121.9 120.0 238.5 112.0 222.6 22.7 46.6 21.9 45.7 Production Costs-! (Rp'0200/ha) 14.5 30.1 Net Value of Production- (Rp'000/ha) 53.5 91.8 97.3 191.9 90.1 176.9 Labor Requirements (man-days/ha) 155 180 187 217 190 222

Soyabean (Wet Season) Soyabean (Dry Season) P W P W

Yield (ton/ha) 0.7 1.2 90.0 115.0 Farm-gate Price (Rp'000/ton) 130 104 8.8 8.4 Gross Value of P2gduction (Rp'000/ha) 91.0 124.8 792.0 966.0 Production Costs- (RP'90O/ha) 5.6 10.6 138.0 179.0 Net Value of Production- (Rp'000/ha) 85.4 114.2 654.0 787.0 Labor Requirements (man-days/ha) 100 140 320 380

1/ Financial costs and prices based on Annex 9, Table 1.

2/ Excluding labor costs. INDONESIA

IRRIGATION PROJECT VI

Sampean Baru: Crop Budgets!/

Local Variety Padd:A HYV Paddy (Wet Season) Corn Soyabean (Dry Season) p W P W P W P W

Yield (ton/ha) 1.5 - - 4.0 0.8 2.0 0.4 1.0 Farm-gate Price (Rp'000/ton) 40.0 - - 53.0 46.o 43.0 130 104 Gross Value of P5?duction (Rp'000/ha) 60.0 - - 212.0 36.8 86.0 52.0 104.0 Production Costs- (Rp'000/ha) 14.5 - - 46.6 8.7 17.4 5.6 10.6 Net Value of Production2/ (Rp'000/ha) 45.5 - - 165.4 28.1 68.6 46.4 93.4 Labor Requirements (man-days/ha) 155 - - 222 90 115 100 140

Cassava (Wet Season) Cassava Cotton (Seed)_ P W P w P W

Yield (ton/ha) 0.3 - 3.0 - 1.0 1.5 Farm-gate Price (Rp'000/ton) 7.0 - 7.0 - 244 178 Gross Value of Production (Rp'00/ha) 2.1 - 21.0 - 244.0 267.0 Production Costs ! (Rp'090/ha) 1.5 - 4.1 - 39.8 50.0 Net Value of Production?! (Rp'000/ha) 0.6 - 16.9 - 204.2 217.0 Labor Requirements (man-days/ha) 30 - 52 - 120 165

1/ Financial costs and prices based on Annex 9, Table 1,

2/ Excluding labor costs.

3/ Cassava interplanted with corn. INDONESIA

IRRIGATION PROJECT VI

Cirebon: Farm Budgets

0.25 ha Farm 0.5 ha Farm 1.5 ha Farm Owner Farmer Sharecropper Owner Farmer Sharecropper Owner Farmer Sharecropper Unit Present Future Present Future Present Future Present Future Present Future Present Future

Local Variety Paddy (Wet) ha 0.10 0.03 0.10 0.03 0.17 0.05 0.17 0.05 0.40 .20 0 40. 0.20

HYV Paddy (Wet) ha 0.15 0.22 0.15 0.22 0.33 0.45 0.33 0.45 1,10 1.30 1.10 1.30

11YV Paddy (Dry) ha 0.08 0.10 0.08 0.10 0.10 0.15 0.09 0.14 0.25 0.30 0.25 0. 36

Secuadary Cru,, ha 0 ') 0.05 0.05 0.05 0.10 0.08 0,1W 0.08 0.15 0.15 0.15 015

Total CroppeeI A,'fi- ha 0.38 0.40 0.38 0.40 0.70 0.73 0l69 0.72 1.90 1.95 1.90 J .95

Cropping Intensity % 152 160 152 160 140 146 138 144 127 130 127 130

Total Crop Production - Paddy kg 770 1,480 770 1,480 1,430 2,770 1,430 2,770 4,310 7,570 4,310 7.570 Secondary Crops kg 40 60 40 60 70 100 70 100 110 180 110 180

Gross Value of Production Rp '000 36.0 84.7 36.0 84.7 66.3 157.2 66.3 157.2 186.7 420.0 186.7 420.0

Sharecrcpper's Payment to Land Owner Rp '000 - - 18.0 42.3 - - 33.1 78.6 - - 93.3 210.0

P ,c Cow t(ts Rp '000 6.9 16.3 3.4 8.1 12.7 30.2 6.3 15.1 37.1 81.9 18.5 40.9

Co%t of Hired Farm Labor 31 Rp '000 ------15.3 19.3 7.6 9.6

Net Value of Production (Before Water Charges) Rp '000 29.1 68.4 14.6 34.3 53.6 127.0 26.9 63.5 134.3 318.8 67.3 159.5

Land Tax Including Water Charges 4/ Rp '000 0.4 1.5 - - 0.8 3.0 - - 2.3 9.0 - -

Net Crop Income 5/ Rp '000 28.7 66.9 14.6 34.3 52.8 124.0 26.9 63.5 132.0 309.8 67.3 159.5

Farm Labor Requirements man-days 55 82 55 82 117 150 117 150 331 405 331 /,05

1/ Based on Annex 1, Tables 4 and s 2/ Based on Annex 9, Table l. 3/ Based on maximum availability of 40 man-days per month of family labor. 4/ IPEDA. Rp 1,500/ha at present and Rp 6,000/ha in the future. 5/ Assumes all paddy is sold, actually small farmers' families will eat much of the crop. INDONESIA

IRRIGATION PROJECT VI

Rentang: Farm Budgets

0.25 ha Farm 0.5 ha Farm 1.5 ha Farm Owner Farm Sharecropper owner Farm Sharecropper Owner Farm Sharecropper Unit Present Future Present Future Present Future Present Future Present Future Present Future Local Variety Paddy (Wet) ha 0.08 0.03 0.08 0.03 0.25 0.08 0.25 0.08 0.75 0.25 0.75 0.25 HYV Paddy (Wet) ha 0.17 0.22 0.17 0.22 0.25 0.42 0.25 0.42 0.75 1.25 0.75 1.25 HYV Paddy (Dry) ha 0.08 0.10 0.08 0.10 0.14 0.16 0.13 0.15 0.40 0.49 0.40 0.49 Secondary Crops ha 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.01 0.01 0.01 0.01 Total Cropped Area ha 0.35 0.37 0.35 0.37 0.66 0.68 0.65 0.67 1.91 2.00 1.89 1.98 Cropping Intensity % 140 148 140 148 132 136 130 134 127 133 127 133 Total Crop Production -/ Paddy kg 870 1,480 870 1,480 1,570 2,740 1,540 Secondary 2,700 4,650 8,270 4,650 8,270 Crops kg 20 30 20 30 20 30 20 30 10 20 10 20

Gross Value of Production Rp '000 37.4 81.6 37.4 81.6 65.4 148.3 64.2 146.2 187.3 440.4 187.3 440.4 Sharecropper's Payment to Land Owner Rp '000 18.7 40.8 32.1 73.1 93.6 220.2 Production Costs 2/ Rp '000 6.9 15.9 3.4 7.9 12.5 29.5 6.2 14.7 36.7 88.3 18.3 44.1

Costs of Hired Farm Labor - Rp '000 ------15.1 30.7 7.5 15.3 Net Value of Production (Before Water Charges) Rp '000 30.5 65.7 15.3 32.9 52.9 118.8 25.9 58.4 135.5 321.4 67.9 160.8 Land Tax Including Water Charges 4 Rp '000 0.4 1.5 - - 0.8 3.0 - - 2.3 9.0 - - Net Crop Income 5/ Rp '000 30.1 64.2 15.3 32.9 52.1 115.8 25.9 58.4 133.2 312.4 67.9 160.8

Farm Labor Requirements mnan-days 61 78 61 78 113 142 113 142 333 425 329 421

1/ Based on Annex 1, Tables 6 and 7. 2/ Based on Annex 9, Table 1. 3/ Based on maximum availability of 40 man-days per month of family labor. 4/ IPEDA. Rp 1,500/ha at present and Rp 6,000/ha in the future. Assumes 5/ all paddy is sold, actually small farmers' families will eat much of the crop. ANNEK 9 Table8F

INDONESIA

IRRIGATION PROJECT VI

Sampean Baru: Farm Budgets

0,25 ha Farm 0.5 ha Farm 1.0 ha Farm Unit Present Future Present Future Present Future

Local Variety Paddy (Wet) ha 0.10 - 0.10 _ 0.20 - HYVPaddy (Wet) ha - 0,20 - 0.40 - 0.75 Corn (Wet) ha 0.08 0.05 0.13 0.08 0.25 0,20 Cassava(Wet) ha 0.05 - 0.10 - 0.20 -

Cassava (Dry) ha 0.0i - 0.07 - 0.13 - Soyabean(Dry) ha 0.01 0.22 0.05 0.43 0.10 0.88 TotalCropped Area ha 0.28 0.47 0.45 0.93 o.88 1.83 Cropping Intensity % 112 188 90 186 88 183

Total Crop Production - Paddy kg 150 800 150 1,600 300 3,Q000 Corn kg 60 100 110 160 200 400 Cassava kg 140 - 340 - 990 - Soyabean kg 5 220 20 430 400 880

Gross Value of Production Rp '000 10.4 69.6 16.0 136.4 69.7 267.7 ProdactionCosts J Rp '000 2.5 12.5 3.3 7.8 6.5 47.8 Cost of Hired Farm Labor-/ Rp '000 - - - - - 1.4 Net Value of Production (BeforeWater Charges) Rp '000 7.9 57.1 12o7 128.6 63.2 218.5 Land Tax ap1 Water Charges4 Rp '000 0.4 1.5 0.8 3.0 1. 6.o

Net Crop Income Rp 1000 7.5 55.6 11.9 125-6. 61.7 212.5

Farm LaborRequirements man-days 28 78 40 152 72 301

l/ Based on Annex 1, Tables 8 and 9. 2/ Based on Annex 9, Table 1. 3/ Based on maximumavailability of 40 man-days per month of faxdly labor. 4/ IPEDA. Rp 1,500/ha at present and Rp 6,000/ha in the future. 5 Assumesall paddy is sold, actuallysmall farmers' families will eat much of the crop. ANNEX 10 Page 1

INDONESIA

IRRIGATION PROJECT VI

Economic Analysis

Prices

1. All farm inputs and outputs were evaluated at projected 1985 farm- gate prices expressed in 1974 constant prices. For the major interna- tionally traded commodities,these prices correspondto the Bank's world market price projections. The calculationsare given in Table 1. In the absence of a Bank world market price projection for cassava, the present farm gate price of Rp 7 per kg (US$17 per ton) has been used.

Farm Labor

2. There are no comprehensive,reliable statisticson population and labor force in the project areas. Total populationin the project areas was estimated based on the 1971 population census and the 1963 agriculturalcensus. Assuming an average family size of seven, 2.0 full- time workers per family and a participationof agriculturein overall employmentof between 80 and 85%, total labor supply at present is about 550,000 farm workers in the Cirebon and Rentang project areas combined and about 50,000 in Sampean Baru. Assuming further that each worker provides 20 days' labor per month gives an estimated farm labor supply of 11 million man-days per month in Cirebon/Rentangand 1.0 million man- days in Sampean Baru. With 1.8%'annual growth of farm population, the monthly farm labor supply at project full development would be about 14 million man-days in Cirebon/Rentang and 1.2 million man-days in Sampean Baru.

3. Estimates of total monthly and annual labor requirementsfor various crops are given in Table 2. Total labor requirements by month are given in Table 3. These figures show considerable seasonal fluctua- tion. Since most labor would be unpaid family labor, labor mobility is limited and the market wage for unskilled labor is frequently fixed by custom rather than market forces, the wage actually paid does not reflect tihe true cost of labor to the economy. The opportunity cost of labor was therefore estimated on a monthly basis using available information on labor supply and demand. Tne approach used does not attempt to adjust for intertemporal or interpersonal income distribution effects, or to place a value on leisure.

4. It is postulated that the marginal opportunity cost of farm labor in the project areas can be approximated by S-shaped curves (Chart 9303). The opportunity cost is positive at all levels of labor demand and increases ANNEX 10 Page 2

as more labor is employed in farm work. Tihe increase is slow at high levels of unemployment but becomes faster as tile labor supply becomes fully used. At full employment in the project areas, tne opportunity cost is assumed equal to the market wage. As the demand for farm labor increases beyond this level, the curve continues to rise but at a slower rate. At a level of 15 to 20% above the prevailing full employment wage, the curve becomes horizontal, indicating that at that opportunity cost (and market wage), large numbers of laborers would be attracted to the project areas from surrounding areas.

5. It is reasonable to approximate each S-shaped curve by ciree straight line segments. Three points based on information from the pro- ject areas determine their positions. Point A indicates the minimum opportunity cost of farm labor. The opportunity cost is estimated as the value of alternative output foregone in non-farm employment, such as fishing and minor trades, of about Rp 100 per man-day in Cirebon/Rentang and Rp 50 per man-day in Sampean Baru. Point 13 indicates that at full employment of 14 million man-days per month in Cirebon/Rentang and 1.2 million man-days per month in Sampean Baru, the opportunity cost would equal the market wage of Rp 210 and Rp 105 in the two areas, respectively. The horizontal segment to the right of Point C indicates that at a wage of Rp 250 in CirePon/Rentang and Rp 125 in Sampean Baru, large numbers of farm laborers would be attracted to the project areas from outside.

6. The monthly marginal opportunity cost may be read directly from the curve at the appropriate level of labor demand. The total economic cost of labor is then the area under the curve up to that level of employ- ment. Computed this way, the economic cost of labor would be Rp 5,505 mil- lion with the project at full development and Rp 4,552 million without the project, or an incremental cost of Rp 953 million in Cirebon/Rentang, and Rp 154 million with and Rp 40 million without the project, or an incre- mental cost of Rp 114 million in Sampean Baru. 'fniswould be equivalent to pricing the incremental employment of 8.4 million man-days per year in Cirebon/Rentang at a shadow wage of Rp 113 per man-day, and the incremental employment of 2.2 million man-days per year in Sampean Baru at a shadow wage of Rp 52 per man-day.

Project Costs

7. Capital costs amount to US$43.6 million for Cirebon, US$35.5 mil- lion for Rentang and US$17.5 million for Sampean BIaru, including physical contingencies but not costs due to expected price increases. Operation and maintenance costs include those for irrigation, drainage, project roads and agricultural services.

Development Period

8. Project benefits would begin with completion of tertiary canal systems and structures. According to the project implementation schedules, construction of tertiaries for the Cirebon systems would begin in mid 1976-77 and continue througlh 1980-81. For Rentang the completed area would begin in mid 1975-76 and continue to increase through 1979-80. For Sampean ANNEX10 Page 3

Baru, the first irrigated areas would be completed in 1977-78 and the entire 9,400 ha would be served by 1979-80. It has been assumed that full development yield levels would be reached over five years from the year of completion in the Cirebon and Rentang areas, and over six years in the Sampean Baru area. Thus full development production is assumed in 1984-85 for Rentang, and 1985-86 for Cirebon and Sampean Baru.

Project Benefits

9. Project benefits are taken as the incremental net value of production after deducting the inputed cost of farm labor. It was assumed that production would increase 1% per annum (or about 10% to full development, without the project. This is derived in Table 4 for the three project areas.

Economic Rate of Return

10. Using the foregoing assumptions and discounting project costs and benefits over a 50 year project life, the economic rate of return is estimated to be 38% for Cirebon, 44% for Rentang and 17.5% for Sampean Baru (Table 5). If a 30 year life is used, there is no change in the percentages.

Sensitivity Analysis

11. Several of the basic assumptions made in the economic analysis have been varied in order to examine their impact on the rates of return. The effects of the various assumptions are as follows:

Assumption Cirebon Rentang Sampean Baru -- %- …- - ---

(a) Full employment wage rate 36 42 16

(b) Shadow wage rate of zero 42 47 19

(c) Full development delayed by four years 30 32. 15

(d) Benefits decreased by 25% 28 30 14

(e) Construction cost increased by 15% 31 38 15 and benefits slipped according to cost overrun

12. The foregoing results show little sensitivity to the assumptions made in costing labor and moderate sensitivity to the rate of agricultural development and the level of benefits attained. These results indicate that high priority must be given to agricultural extension and the timely provision of sufficient farm inputs, particularly fertilizers. ANNEX10 Table 1 Page 1 INDONESIA

IRRIGATION PROJECT VI

Comodity Price Structure, 1974 and 1985

(Rp or US$/ton at constant 1974 prices) 1974 1985 Rp/ton US$/ton Rp/ton US$/ton Rice Ecport price Thai 25%-35% broken fob Bangkok 186,300 45o 78,660 190 Ocean Freight Bangkok-Jakarta 7,450 18 7,450 18 Port Handling Jakarta 2,500 6 2,500 6 Transport Jakarta to Cirebon 6,300 15 6,300 15 Price milled rice, Cirebon 20Z,55 94i.,910 2 Paddy Equivalent price, Cirebon (0.62) 125,600 303 58 800 142 Milling costs less value of by-products - 3,5003 Transport Farm to Mill - 2J500 -6 -2 500 - 6 Farm gate price of paddy 119,600 2T 5,79 (Financial farm gate price)2! (40',oo0) (97) Soybean ExportPrice of bean fob U.S. 110,100 266 83,200 201 Freight US - Jakarta 26,900 65 26,900 65 Port Handling Jakarta 2 500 6 2,500 6 Price of bean, Jakarta 1 112,600 =7 Transport, Cirebon-Jakarta - 6,300 -15 - 6,300 -15 Transport, farm-Cirebon - 2,500 - 6 - 2 500 - 6 Farm gate price of soybean J3O1700 T2T 1,0-

Sugarcane Export price fob Caribbean 191,700 463 82,000 198 Ocean freight Caribbean-Jakarta 26,900 65 26,900 65 Port Handling Jakarta 2 500 6 2 500 6 Price of sugar, Jakarta 22 0 111,400 2 Transport,project area-Jakarta - 6,300 -15 - 6,300 -15 Processing and cane transport -20,800 -50 -20 800 -50 Farm gate price of cane per ton sugar 194,000 77 64,300 TOT Farm gate price of sugar cane (0.10) 19,400 47 8,400 20

1/ Financial prices lower than economic prices for outputs and inputs in 1974 reflect Government policy to keep food prices low internally in the face of record high world market prices. It is assumed that as world market prices fall in real terms according to Bank commodity price forecasts, distortions between internal and world prices will be eliminated. ANNE=10 Table 1 Page 2

Corn Exportprice fob Bangkok 45,54o 110 38,500 93 Ocean FreightBankok-Surabaya 8,280 20 8,280 20 Port handling Surabaya 2,500 6 2 500 6 Price of corn, Surabaya 56,3Zo iII 49,Zo M Transport Bondowoso to Surabaya - 5,000 -12 - 5,000 -12 Transport farm to Bondowoso - 1,650 - 4 - 1,650 - 4 Farm gate price of corn 49,670 i55 4Z,630 (Financialfarm gate price) 1/ (46,000) (110)

Cotton Price of lint cif Liverpool 641,700 1,550 455,400 1,100 TransportUS-Surabaya less US-Liverpool 35,200 85 35,200 85 Port handlingSurabya 3,300 8 3 300 8 Price of cotton,Surabaya 6 0 0,200493,U 1,930 Transport project area to Surabaya - 5,000 - 12 - 5,000 - 12 Ginning Cost -25,000 - 60 -25,000 - 60 Transport farm to ginning factory - 2 500 - 6 - 2 500 - 6 Farm gate price of cotton per ton of lint 61,565 461,400 1,115 Farm gate price of seed cotton (0.35) allowing for value of seeds 244,000 590 178,000 430

Urea Export price fob Tokyo 103,500 250 45,600 111 Transport Tokyo - Jakarta 6,200 15 6,200 15 Port handling, Jakarta 2 500 6 2 500 6 Price of urea, Jakarta 112,200 271 -1317 Transport, Jakarta - Cirebon 6,200 15 6,200 15 Transport, Cirebon to farm 2 000 5 2 000 5 Farm gate price of urea 291 150 (Financial farm gate price) 1/ (40,000) (97)

1/ Financial prices lower than economic prices for outputs and inputs in 1974 reflect Government policy to keep food prices law internally in the face of record high world market prices. It is assumed that as world market prices fall in real terms according to Bank commodity price forecasts, distortions between internal and world prices will be eliminated. ANNEX 10 Table 2 INDONESIA

IRRIGATION PROJECT VI

Total Monthly Labor Require-sents (mao-days'000)1/

Area (ha) Jan Feb Mar Apr May -Jon Juo Awg 8ep Oct Nov Dec Total

Cirebon end Rentang Irrination Syste-s

Wct Seae.n

Local Variety Paddy / 77,000 2,772 35 1,155 3,00 385 1,155 3,003 11,935 W 77,000 2,772 462 1,309 3,080 770 - - - - - 1,155 3,003 12,551 14 21,000 756 210 420 945 315 - - _ _ _ 315 819 3,780

MYV Paddy P 96,000 5,088 960 1,920 4,320 480 - - _ - _ 1,440 3,744 17,952 W 96,000 5,088 960 2,400 4,320 1,248 _ _ _ _ _ 1,440 3,744 19,200 W 152,000 8,360 1,976 4,560 7,600 2,280 - - _ 2,280 5,928 32,984

Secondary Crepe p 1,500 ------30 23 15 15 30 113 5 1,500 ------37 23 18 20 37 135 W 1,500 ------37 37 23 23 45 165

Dry S..aon

RYV Paddy P 35,000 - - - - 525 1,365 1,925 525 560 1,400 350 - 6,650 W 35,000 - - _ _ 525 1,365 1,925 595 630 1,575 455 - 7,070 W 44,000 - - - - 660 1,716 2,640 792 880 2,420 660 - 9,768

Sugar Cane P 7,500 52 52 128 398 735 750 578 345 180 128 52 52 3,450 W 7,500 52 52 128 413 773 825 600 345 180 128 52 52 3,600 14 7,500 75 75 172 413 817 825 652 398 248 150 75 75 3,975

Secoedary Crops P 19,500 - - - - 683 292 195 195 585 - - - 1,950 W 19,500 - - - - 684 390 293 293 604 - - - 2,344 W 201000 800 400 300 300 000 - _ - 2.600

Total p 236,500 7,912 1,397 3,203 7,798 2,808 2,407 2,698 1,095 1,348 1,543 3,012 6,829 42,050 W 236,500 7,912 1,474 3,837 7,813 4,000 2,580 2,818 1,270 1,517 1,721 3,122 6,836 44,900 W 246,000 9,191 2,261 5,152 8,958 4,872 2,941 3,592 1,527 1,965 2,593 3,353 6,867 53,272

Sampson Bar- Irrigation Systma We.- Season

Local Variety Paddy P 2,000 72 10 30 80 10 - - - - - 30 78 310 W 2,000 72 12 34 80 20 - - - - - 30 78 326 W4 - - -- -_-_ _ ___-__- -

RYV Paddy P 14 ------W 7,500 412 98 225 375 113 - - - - - 113 292 1,628

Corn P 2,500 33 30 62 ------50 50 225 W 2,500 33 30 70 ------50 55 238 W 1,900 29 25 70 ------38 57 219

Cassava/ P 2,000 12 - - 4 8 8 8 - - _ _ 20 60 W 2,000 12 - - 4 8 8 8 - - - - 30 60

StySeason

Consave P 1,300 4 - - 22 14 - - 4 9 9 5 - 67 W 1,300 4 - - 22 14 - - 4 9 9 5 - 67

Secondary Crepe P 600 - - - 6 15 9 6 6 18 - - - 60 W 600 - - - 6 15 12 8 7 21 - - - 69 14 8,600 - - - 86 258 172 129 129 344 - - - 1,118

Cotton (S8ed) P 400 - - - 16 8 4 3 3 4 10 _ _ 48 W 400 - - - 16 8 4 4 4 4 11 - - 51 W 400 - - _ 16 8 6 6 6 6 18 _ - 66

Total P 8,800 121 40 92 128 55 21 17 13 31 19 85 148 770 W 8,800 121 42 104 128 65 24 20 15 34 20 85 153 811 W 18,400 441 123 295 477 379 178 135 135 350 18 151 349 3,031

I/ Derived from A=-ee 9, Table 2.

2/ P = Present, 4 - Peters vithoot project, W = PFtore with project.

3/ Cassava interplanted with corn, INDONESIA

IRRIGATION PROJECT VI

Economic Cost of Farm Labor at Full Project Development

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

Cirebon and Rentang Irrigation Systems

Labor Requirement W 1/ 9.2 2.3 5.2 9.0 4.9 2.9 3.6 1.5 2.0 2.6 3.4 6.9 53.3 (million man-days) W 7.9 1.5 3.8 7.8 4.0 2.6 2.8 1.3 1.5 1.7 3.1 6.8 44.9

Marginal Opportunity W 140 102 104 135 103 102 102 101 101 102 102 105 Cost (Rp/man-day) W 120 101 103 117 103 102 102 101 101 101 102 105

Economic Cost of Farm W 977 232 530 947 497 293 364 151 201 263 343 707 5,505 Labor (Rp million) 808 151 386 792 406 263 283 131 151 171 313 697 4,552

Incremental Economic Cost of Farm Labor (Rp million) W-W 169 81 144 155 91 30 81 20 50 92 30 10 953

Sampean Baru Irrigation System

Labor Requirement W 0.4 0.1 0.3 0.5 0.4 0.2 0.1 0.1 0.3 * 0.2 0.4 3.0 (million man-days) W 0.1 0.1 0.1 0.1 0.1 * 2/ * * * * 0.1 0.2 0.8

Marginal Opportunity W 53 50 52 54 53 51 50 50 52 - 51 53 Cost (Rp/man-day) W 50 50 50 50 50 - - - - - 50 51

Economic Cost of Farm W 21 5 15 26 21 10 5 5 15 - 10 21 154 Labor (Rp million) 5 5 5 5 5 - - - - - 5 10 40

Incremental Economic Cost of Farm Labor (Rp million) W-W 16 - 10 21 16 10 5 5 15 - 5 11 114

______o z

1/ W = Future with project. W = Future without project X x 2/ * less than 0.05 o INDONESIA

IRRIGATION PROJECT VI

Economic Analysis-Net Value of Production at Full Project Development

Net Return from Less Imputed Net Value Incremental Project Area Cost of Farm of Net Value Without Costing Labor 2/ Production of Irrigation System Farm Labor 1/ Production

(Rp million) (Rp million) (Rp million) (Rp million) (US$ million)

W3/ W W W W W W-W W-W

Cirebon 16,281 25,465 2,276 2,752 14,005 22,713 8,709 21,000

Rentang 13,480 22,442 2,276 2,753 11,204 19,689 8,485 20,500

Sampean Baru 322 2,293 40 154 282 2,139 1,857 4,500

1/ "with" project conditions from Annex 1, "without" project conditions are based on an assumed 1% 1/ annual increase in yield from 1975 to 1985.

2/ From Annex 10, Table 3. Labor cost for Cirebon and Rentang systems has been allocated on an area basis.

3/ W Future without project, W = Future with project.

rXI 0 ANNEX10 Table 5

INDONESIA

IRRIGATION PROJECT VI

Economic Costs and Benefits (US$ o000)

IrrigationSystem Year Costs Benefits- Capital 0 & M Total

Cirebon: 1 1,700 180 1,880 0 2 5,,900 220 6,120 1,350 3 10,100 270 10,370 4,220 4 10,400 360 10,760 6,330 5 10,500 440 10,940 10,130 6 9,300 560 9,860 14,350 7 0 560 560 16,880 8 0 560 560 17,935 9 0 560 560 18,990 10 0 560 560 20,045 11-50 0 560 560 21,000 Economic Rate of Return: 38%

Rentang: 1 3,400 200 3,600 1,640 2 8,900 240 9,140 3,280 3 15,200 280 15,480 4,100 4 8,500 370 8,870 8,200 5 2,900 460 3,360 13,120 6 200 580 780 16,400 7 0 580 580 17,425 8 0 580 580 18,450 9 0 580 580 19,475 10-50 0 580 580 20,500 Economic Rate of Return: 44%

Sampean-Baru: 1 1,100 20 1,120 0 2 4,800 25 4,825 0 3 7,100 30 7,130 330 4 3,700 40 3,740 1,250 5 2,400 50 2,450 2,150 6 100 65 165 3,300 7 0 65 65 3,520 8 0 65 65 3,740 9 0 65 65 3',960 10 0 65 65 4,180 _l-50 0 65 65 4,500 Economic Rate of Return: 17.5%

1/ IncrementalNet Value of Productionfrom Table 4. INDONESIA IRRIGATION PROJECT VI ESTIMATED OPPORTUNITY COST CURVE FOR FARM LABOR

CIREBON AND RENTANG

< 250r

LL

0~

I- 0 C)

n C- 10 0 50 o - 521015 o 00 0L

0 5 10 15 20

FARM LABOR DEMAND (MILLION MAN-DAYS/MONTH)

SAMPEAN BARU

I. 10 __ __

I00

O 50

< 25r

0 0,5 1.0 1.5 2.0

FARM LABOR DEMAND (MILLION MAN-DAYS/MONTH)

World Bank-9303 INDONESIA I RRI GATION PROJECTSVI AND VI II WATER RESOURCESORGANIZATION CHART

MINISTER OF PUBLIC WORKS AND ELECTRIC POWER

DIRECTOR-GENERAL OFl |WTRRESOURCES DEVELOPMENT|

_|AGENERAL lSECRETARIATE CONSULTANTSll

IR E O D DIRECTORATE OF DIRECTORATE OF INSTITUTE OF IVDIRECTORATEOF DIRECTORATE PLANNING AND LOGISTICS AND HYDRAULIC RIVERS &SWAMPS OF IRRIGATION PROGRAMMING PROCUREMENT ENGINEERING

JATIGEDE DAM PROSIDA GROUP

World Bank-8963 INDONESIA IRRIGATION PROJECT VI PROSIDA MANAGEMENT ORGANIZATION

MINISTRY OF AGRICULTURE

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DEPUTY 0 &

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0 & M SECTIONS

CONSTRUCTION SUPERVISORS

1/ PROVINCIAL STAFF 2/ PROSIDA STAFF World Bank-8964 Wol ak86 INDONESIA IRRIGATION PROJECTVI CIREBONIRRIGATION SYSTEMS DESIGNAND CONSTRUCTIONSCHEDULE

ALL AREAS BY SYSTEMS INDONESIAN FISCAL YEAR

WORKS 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1/

DESiGN AND PLANNING APR. 1

TENDER DOCUMENTS JAN. 1

HEAD WORKS AND WEIRS APR. 1

PRIMARY AND SECONDARY CANALS APFR.1

TERTIARY CANAL SYSTEMS AND STRUCTURES OCT. 1

DRAINAGE AND FLOOD BANKS OCT I

CAMP, OFFICES AND BUILDINGS Al R. 1

RURAL ROADS AND INSPECTION ROADS APR. 1

REHABILITATION AREA COMPLETED 7,000 Ha 26,000 Ha 20,000 Ha 22,000 Ha 13,000 Ha ANNUALLY ~3uMUu3hI..mu.smh mhuhuIEm h.u.EummEEIuEuuE

1/ INDONESIAN FISCAL YEAR APRIL 1 TO MARCH 31

World Bank-8960 INDONESIA IRRIGATION PROJECTVI RENTANG IRRIGATION SYSTEM DESIGNAND CONSTRUCTIONSCHEDULE - ADDITIONAL WORKS

INDONESIAN FISCAL YEAR WORKS R_ NTANG BARRAGE I 1975-76 1976-77 1977-78 1978-79 1979-80 IRENTANG BARRAGE

DESIGN AND PLANNING APR 1

ACCESS ROADS JAN1

JAN. 1 TENDER DOCUMENT FOR BARRAGE

RIVER DIVERSION WORKS AND JULY 1 TAIL RACE CHANNEL A

MAIN BARRAGE APR I

HEAD WORKS AND BASIN APR 1

FORE BAY LEVEE APR 1

It TERTIARY CANAL SYSTEMS AND STRUCTURES OCT. 1 AREA REHABILITATED ANNUALLY 5,000 Ha 21,000 Ha 21,000 Ha 22,000 Ha 21,000 Ha

APR. 1 III COASTAL AREA DRAINAGE WORKS Al_R_1

(IN PROGRESS UNDER CREDIT 127-IND) A'R. 1 4,700 Ha-| 3,400 Ha 19,000 Ha 5,800 Ha I DRAINAGE AREA REHABILITATED ANNUALLY 1APR111?0111a1111 .. l *fl...... ,.. IEgEIEhIU J

WAkorldBank 8g INDONESIA IRRIGATION PROJECTVI SAMPEANBARU IRRIGATION SYSTEM DESIGNAND CONSTRUCTIONSCHEDULE

INDONESIAN FISCAL YEAR WORKS 1975-76 1976-77 1977-78 1978-79 1979-80

DESIGN AND PLANNING APR.

PRELIMINARY WORKS-AND SURVEY APR. 1 BORING AND ACCESS ROAD TO DAM

DEC. 1 MAIN DAM TENDER DOCUMENTS

MAIN DAM WORKS APR 1

PRIMARY AND SECONDARY CANALS JAN. 1 TENDER DOCUMENTS

CONSTRUCTION R. _

AR 1 TERTIARY CANAL SYSTEMS AND STRUCTURES - AREA COMPLETEp APR._I Ha) (2700 Ha) (3300 Ha) ANNUALLY (3700

APR. 1 LAND LEVELING AND SHAPING

ROADS-I NSPECTI ON AND ACCESS _

World Bank--8962 INDINESIA IRRIGATIONPROJECT VI SAMPEANBARU IRRIGATION SYSTEM CROPCALENDAR AND WATERREGUIREMENTS

DEC JAN FES MAR APR MAY JUNE JULY AUG SEPT OCT NOV

1/ : ~~~~~~~~~~~~~HARVEST PADDY- 1,t BLOCK-25% -D.PR. _w - - - - SEEDBED11 LAND PREP .

PADDY - 2nd BLOCK - 25%

PADDY - 3rd BLOCK - 25% - ,

PADDY - 4h BLOCK - 25%

2/ PLANT HARVEST LAND PREP CORN- sw- -

SOYABEANS w flw. __

PREP & PLANT HARVEST COTTON ------t=Air temperature at Assam- bagus - C° 26.2 25.6 25,7 25.9 26,3 26.2 25.9 25.5 25.9 26,7 27.1 27.0 Kt=0.0311t + 0.24 1.05 1,03 1.04 1.05 1.06 1.05 1.05 1.03 1.05 1.07 1.08 1.08 p for 8 S Latitude 8.84 8.79 7.84 8.51 8.11 8.24 7.91 8.13 8.32 8.18 8.62 8.47 f=p(45.7t + 813) x 0.01 177.7 174.3 153,7 169.9 163.4 165.6 157.9 160.8 166.1 166.3 176.8 173.4 K0 -(Paddy - b.hle area) 0.08 0.69 1.16 1.25 5.84 - K, p;- S be=ens 0.24 0.92 0.96 0.40 0.75 1.00 0.60 Paddy ai-Ktx KP 0.0S 0.71 1.21 1.31 0.89 Soyaheans K2=Kt x Kcp1 0.25 0.97 0.99 0.42 0.80 1.08 0.65

Up-Ka f - in a,, 14 124 186 223 145 Upl=K2 f - in m 41 153 159 70 133 191 113

Seed Bed aed Land Preparation in rm 120 80 _ _ Water Required for Paddy and Polowijo - .me 134 204 186 223 145 41 153 159 70 133 191 113 Effe-tive Rainfall Re0 neadand .esidual Field 1n0atare3/ 64 105 84 79 62 25 25 25 - Irrigation Requirements at Farm - -m 70 99 102 144 83 16 128 134 70 133 191 113 6 Cropped Area ------… - -… 9,800 ha Peddy> . C...... >_------8,820 ha 58yo_an_ -- 4 … 2,450 F:a so5CbeaD-s-______

Volume of Water Required at Farm - Mm3 3 6.86 9,70 10.00 14.J1 8.13 1.41 11.29 11.82 5.80 3.26 4.68 2.77 Q Required at Farm m /s.. 2.56 3.65 4.13 5.27 3.14 0.53 4.36 4.41 2.17 1.26 1.75 1.07 Overall Irrigation Efficiency 55 50 50 50 55 55 60 60 60 60 60 55 Diversion Requirement Q-n /sec 4.65 7.24 8.a6 10.54 5.71 0.96 7.27 7.35 3.62 2.10 2.92 1.95

1/ Staggered paddy planting at 10 day Sntervals. 2/ Crap oalendar 'n accordan a r#)OAe 1, D/Dependable rainfall 8 in 10 years. MAq,Juve aqsd Julr re8idual a.oisture 25 mle. I/ Water requiremnta baced on worat cond5 ioip of full rea to paddy and two dry esason crops. Modified Blaney-Criddle Formule U = Kf f = Monthly consumptive-use factor World Sank 8966 Where: U = Consumptive-use of the crop 'in e = p(45.7t + 813) x 0.01 (metric unit) K = Empirical consumptive-use crop coefficient p - Monthly percentage of daylight hours = Kt x Kc in the year Xt = A clinatic coefficient which is related to U (0.0311t + 0.24) Kc x p(45.7t + 813) x 0.01 e the mean air temperature (t in OC) = 0.0311t + 0.24 (metric unit) Kc = A coefficient reflecting the growth stage of the crop IBRD2-2711 / I ~~~~~~~~~~~~~IAUGUST1974 / 20-0 poE I1E I2 INDONESIA I I-E IRRIGATIONPROJECTS VI AND VIII LOCATIONMAP M a k a s s a r IRRIGATIONREHABILITATION PROJECT nI V - Executed y Jhtiluhur Authority - .IRRIGATIONREHABILITATION PROJECT Itrait SU lAW E SI IRRIGATIONREHABILITATION PROJECT ]H Executedby Prsida IRRIGATIONREHABILITATION PROJECT IV (CELEBES) BAN KA BELITUNG IRRIGATIONREHABILITATION PROJECT VI OPImcg tu~tJATIGEDE DAM PROJECT Viii- ecednrDcatoRer< t B, . .',,- '.'. S'GROUNDWATER EXPLORATION PROJECT RA ,' ' . FUTUREMADIUN IRRIGATIONREHABILITATION A EUA TE xSAr- 5 U M A T E R A t | | * RAILWAYS KALIMAN TAN

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ISRD-10867 SEPTEMBER197A INDONEStA IRRIGATIONPROJECTS Vl AND VIII aJ v a S e a ". cD4Zffrxtr X CREBONAND RENTANGIRRIGATION SYSTEMS JATIGEDEDAM AND fUTUREPHASES OF IRRIGATION

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IBRD 11197 G 1 t.: ...... A$ OCTOBER1974

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0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1

I NDONES IA IRRIGATION PROJECT VI PROPOSEDSAMPEAN BARU IRRIGATION SCHEME

EXISTING IRRIGATION AREAS

PROPOSEDIRRIGATION AREAS PRAJEKAN, 2200 ho. 771PANJI,1500 ho, ASEMBAGUS ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ASEMRAGI.S,6100 ho.. -PROPOSED MAIN CANAL PROPOSEDSECONDARY CANALS

- RIVERS ROADS

-4-04-RAILROADS DISTRICT ROUNDARES

KI LOMETERS