Document of The World Bank

FOR OFFICIAL USE ONLY Public Disclosure Authorized

Report No. 16200-MA

IMPLEMENTATION COMPLETION REPORT

Public Disclosure Authorized MALAYSIA

SECOND WESTERN JOHOR AGRICULTURAL DEVELOPMENT PROJECT (Loan 2740-MA) Public Disclosure Authorized December 23, 1996

Agriculture and Environment Operations Division Public Disclosure Authorized Country Department I East Asia and Pacific Region

This documenthas a restricteddistribution and may be used by recipientsonly in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS

Currency Unit Malaysian Ringgit (RM) US$ 1.00 RM 2.48 (at appraisal in April/May 1985) RM2.50 (at loan closing in June 1996)

WEIGHTS AND MEASURES

Metric System

FISCAL YEAR

January I to December 31

ABBREVIATIONS AND ACRONYMS

DID Department of Irrigation and Drainage DOA Department of Agriculture ffb fresh fruit-bunch (oil palm) ha hectare ICR Implementation Completion Report mcm million cubic meters O&M Operation and Maintenance PMIJ Project Management Unit RISDA Rubber Industry Smallholders Development Authority

Vice President: Marianne Haug, Acting Vice President, EAP Director: Javad Khalilzadeh-Shirazi, EAI Division Chief: Jeffrey Gutman, EA I AE Task Manager: Syed Husain, EAIAE FOR OFFICIALUSE ONLY

INMPLEMENTATIONCOMPLETION REPORT MALAYSIA SECOND WESTERN JOHOR AGRICULTURALDEVELOPMENT PROJECT (Loan 2740-MA)

CONTENTS Page No. Preface. i Evaluation Summarya..

PART I: PROJECT IMPLEMENTATIONASSESSMENT ...... 1

A. Statement/Evaluation of Objectives...... I B. Achievement of Objectives...... 9 C. Implementation Record And Major Factors Affecting The Project...... __ ....4...... 4 Implementation Record...... 4 Major Factors Affecting the Project...... 6 D. Sustainability...... 7 E. Bank Performance...... 8 F. Borrower Performance...... 8 G. Assessment of Outcome...... 8 H. Future Operation ...... 8 I. Key Lessons Leamed ...... 9

PART II: STATISTICAL TABLES...... 1.1

Table 1: Summary of Assessments...... 12 Table 2: Related Bank Loans...... 13 Table 3: Project Timetable...... 13 Table 4: Loan Disbursements: Cumulative Estimated and Actual...... 14 Table 5: Key Indicators for Project Implementation...... 15 Table 6: Key Indicators for Project Operation...... 16 Table 7: Studies Included in Project...... 16 Table 8A: Project Costs ...... 17 Table 8B: Project Financing ...... 18 Table 9: Economic Costs and Benefits...... 18 Table 10: Status of Legal Covenants...... 19 Table 11: Compliance with Operational Manual Statements...... 20 Table 12: Bank Resources: Staff Inputs...... 20 Table 13: Bank Resources: Missions...... 21

APPENDICES

Appendix 1: Completion Mission's Aide-Memoire Appendix 2: Borrower's ICR Appendix 3: Economic Re-Evaluation

N,lapIBRD 18871R

This documenthas a restricteddistribution and maybe usedby recipientsonly in the performanceof their officialduties. Its contentsmay nototherwise be disclosedwiLhout World Bank authorization.

IMPLEMENTATION COMPLETION REPORT

MALAYSIA

SECOND WESTERN JOHOR AGRICULTURAL DEVELOPMENT PROJECT (Loan 2740-MA)

PREFACE

This is the Implementation Completion Report (ICR) for the Second Western Johor Agricultural Development Project in Malaysia, for which loan 2740-MA in the amount of US$55 million equivalent was approved on July 15, 1986 and made effective on September 16, 1986.

The loan was closed on June 30, 1996 after an 18-month extension from the original closing date of December 31, 1994. There were cancellations of US$4 million on January 25, 1993, US$1.62 million on September 22, 1994, and US$ 0.067 million on January 10, 1996. The remaining loan amount of US$49.31 million was fully disbursed, and the last disbursement took place on September 6, 1996.

The ICR was prepared by Messrs. Syed Husain (Task Manager) and Jagdish Srivastava (Consultant Engineer), Agriculture and Environment Operations Division (EA1AE), Country Department 1, East Asia and Pacific Region, and reviewed by Messrs. Jeffrey Gutman. Chief, EA1AE, and Walter Schwermer, Project Advisor, EAI. The borrower provided comments that are included as Appendix 2 to the ICR.

Preparation of this ICR is based on the Bank's implementation completion mission in October/November 1996 and on material in the project file. The borrower contributed to preparation of the ICR by offering views reflected in the mission's Aide- Memoire (Appendix 1), commenting on the draft ICR, and preparing it's own evaluation of the project's execution (Appendix 2).

IMPLEMENTATION COMPLETION REPORT

MALAYSIA

SECOND WESTERN JOHOR AGRICULTURAL DEVELOPMENT PROJECT (Loan 2740-MA)

EVALUATIONSUMMARY

i. Introduction. In the mid-1980s, rural poverty incidence was still high in Malaysia at over 20%, with the rural areas accounting for two-thirds of the nation's poor. Government's policy emphasis was, therefore, on maximization of farm income of smallholders, and expansion of agricultural production. In Johor, which was the largest agricultural producer among Malaysia's states, the southwestern part was mostly flood- prone and poorly-drained. About 135,000 ha of this area was provided with flood control and drainage works under the Western Johor Agricultural Development Project (Loan 973-MA), which was completed in 1984. This was followed by the Second Western Johor Agricultural Development Project (Loan 2740-MA). The project area covered about 210,000 ha, of which some 97,000 ha was poorly drained and subject to regular flooding.

ii. Project Objectives. The main project objective was to control floods and improve drainage to facilitate development of 85,000 ha. Of this, 14,500 ha of senile rubber on smallholdings was to be replanted with high-yielding rubber, oil palm (including 3,000 ha to be developed into 30 mini-estates), and diversified crops, during the project period under the ongoing replanting grant scheme of the Rubber Industry Smallholders Development Authority (RISDA), and the remaining 70,000 ha was to be developed after completion of project works. The project civil works were to include construction of a storage dam (called Bekok dam); river improvement works; construction of a catchment separator bund and a small flood retarding embankment; construction of main and secondary drains; construction of new agricultural roads, and resurfacing of roads and maintenance tracks along existing secondary drains; replacement of eight bridges over the rivers to be widened; and flood protection for the town of Parit Sulong. In addition, support was to be given to project management in the form of engineering consulting services, equipment and vehicles, administration buildings, a soils laboratory, and incremental project staff. iii. Evaluation of Objectives. Project objectives were clear and realistic, important for the agricultural sector in Johor State, in particular, and Malaysia, in general, and consistent with the Bank's country assistance strategy in the mid-1980s, which emphasized raising of productivity on smallholder farms and rural poverty alleviation. Conceptually, the project was neither complex nor risky. However, appraisal - iii - expectations still turned out to be optimistic, and the project, when completed in 1998, would have spanned 12 years, due to delays caused by a variety of factors (para. iv). iv. Implementation Experience. At appraisal, project completion was expected in 1993, and the Bank loan closing date was December 31, 1994. When the loan closed on June 30, 1996 after two extensions, works on drains and farm roads were still continuing. These works are expected to be completed by the end of 1998. The delay in project implementation was due to several factors, including inadequate counterpart funding in the initial project years, major design changes for the bridges, a longer than anticipated time taken in completion of designs and award of contracts for drainage and farm road works, and some land acquisition problems. Although project implementation was delayed, the major civil works (Bekok dam, flood retarding embankment, catchment separator bund, improvement of rivers, and reconstruction/strengthening of the bridges on these rivers) had been completed by the loan closing date. The completed project works have been properly maintained and monitored. Land acquisition and compensation, and resettlement of 74 families displaced from the Bekok dam storage area, have been satisfactory. The resettlers were provided alternative land and other facilities, and available evidence suggests that their current income and standard of living are better than before resettlement. However, the issuance of land titles to the resettlers, and the remaining payment to other land owners for acquired land, needs to be expedited. As regards the agricultural component of the project, the replanting under grants by RISDA is almost the same as expected at appraisal. v. Costs and Financing. At loan closing, project costs were estimated at US$107.6 million equivalent, compared to US$148.3 million at appraisal. However, an additional US$22.2 million equivalent would be needed until project completion in 1998, bringing the total project cost to US$129.8 million equivalent, or 88% of the appraisal estimate. The cost underrun is primarily due to significantly lower costs of Bekok dam, river improvement works, and land acquisition. The final loan amount of US$49.3 million (after cancellations on three occasions from the originally approved US$55.0 million) financed about 46% of the project cost at loan closing (38% of the estimated cost at completion in 1998), with the Government financing the rest. vi. Results and Impact. The project objectives laid down at appraisal have been mostly achieved. Of the 85,000 ha agricultural area expected at appraisal to eventually benefit from the project's flood control and drainage works, approximately half is estimated to be benefiting already by the end of 1996. These areas are also benefiting from construction of farm roads, which inter alia have substantially reduced transport cost of produce and inputs, and increased labor mobility to nearby towns (particularly improving opportunities for women to work on off-farm jobs, since transport to and from home is now provided by factories in nearby urban areas). Flood damage to property in the project area and the human suffering and public costs due to evacuation of affected people to the relief centers have been virtually eliminated. - iv - vii. Project sustainability is likely as the borrower has adequate technical and financial capacity to operate and maintain project civil works; and, on the agricultural side, farmers are expected to have continued interest in growing oil palm, given its relatively low labor requirements and reasonably good price prospects. The overall outcome of the project is satisfactory. The re-estimated net present value of the project at a discount rate of 10% is RM57.8 million, and the economic rate of return (ERR) 13%, compared to the appraisal estimate of 14%. The lower ERR at completion is mainly due to lower projected world prices for palm oil. viii. The performance of the Bank and the borrower from project identification tlhrough supervision was largely satisfactory. The Bank insisted on thorough preparation ol the project, learning from the experience of the Phase I project, and delayed appraisal uLntilpreparation was complete. The borrower performed very well on procurement. The standard of construction, operation and maintenance (O&M) of the Bekok dam also deserves special commendation. ix. Future Operations. The Project Management Unit (PMU) has already prepared an O&M plan for project civil works. The Department of Irrigation and Drainage of .lohor State (State DID) is expected to take over the O&M of project works from the Federal Government soon after completion in 1998. Based on the experience of O&M funding by the Federal Government and State DID for Phase I works, the estimated amount of RM13.5 million per annum required for O&M of Phase II works is within the financing capability of the Government. However, consideration should be given to increasing cost recovery from the farmers by raising the drainage charges, which have remained at RM 15/ha/year since 1970, compared to the current maintenance cost of about RM37/ha/year. x. Key Lessons Learned. The main lessons learned from project implementation experience are the following: (a) action on land acquisition and detailed designs for civil works prior to project commencement helps expeditious project implementation, as was demonstrated by the smooth and timely implementation of the Bekok dam construction and river improvement works under the project; (b) in a rapidly industrializing economy like that of Malaysia, with growing labor shortages, attracting competent technical staff to the public sector will be increasingly difficult, and, therefore, greater reliance should be placed on the private sector for the O&M of project works; (c) to ensure long-term financial sustainability of O&M of project works, and to promote greater beneficiary participation in O&M, cost recovery from beneficiaries should be increased through inter alia appropriate adjustments in drainage charges; (d) the de-emphasis on the establishment of new mini-estates (none was established under the project) was an appropriate response by RISDA to the many problems faced by existing mini-estates, and was consistent with the Government policy to phase out direct involvement of the public sector in agricultural production activities; and (e) peat soils should not be drained by deep drains with large spacing; instead, shallow drains with less spacing and with water level control should be used to keep the area drained without lowering the groundwater level significantly. I IMPLEMENTATION COMPLETION REPORT MALAYSIA SECOND WESTERN JOHOR AGRICULTURAL DEVELOPMENT PROJECT (Loan 2740-MA) PART I: PROJECT IMPLEMENTATION ASSESSMENT

A. STATEMENT/EVALUATIONOF OBJECTIVES

1. Introduction. In 1985, when the project was appraised, the agricultural sector was still playing an important role in the Malaysian economy, contributing about 23% of GDP, 40% of total merchandise exports, and 35% of total employment. However, the agricultural growth rate had slowed down to 3.7% per annum (p.a.), compared to 7% p.a. in the 1960s and 1970s. Moreover, rural poverty incidence was still high at over 20%, with the rural areas accounting for about two-thirds of the nation's poor. The Government, therefore, reviewed its sectoral objectives and announced its National Agricultural Policy (NAP) in 1984. Maintaining the emphasis on poverty alleviation, the NAP objectives were: (a) maximization of farm incomes to improve the quality of rural life and facilitate retention of productive labor in the sector; and (b) expansion of production of traditional and new export and food crops to revitalize the agricultural sector.

2. At the time of project appraisal, Johor was the largest agricultural producer among Malaysia's states. However, its rural incomes were about half of urban incomes, and the annual growth rate of its farm output was less than half of the national average. The southwestern part of the State, settled with smallholders, was mostly flood-prone and poorly drained. Infrastructure development of about 135,000 ha in this area was successfully completed in 1984 under the Western Johor Agricultural Development Project (Loan 973-MA). This was followed by the Second Western Johor Agricultural Development Project (Loan 2740-MA). The project area covered about 210,000 ha. The average annual household income for rural families in the project area was RM356 per month, which was about equal to the official estimate of the rural poverty income level.

3. Statement of Objectives. The main project objective was to control floods and improve drainage to facilitate development of 85,000 ha in the project area. Of this, 14,500 ha of senile rubber on smallholdings was to be replanted with high-yielding rubber (3,000 ha), oil palm (10,000 ha, including 3,000 ha to be developed into 30 mini-estates), and diversified crops (1,500 ha) during the project period under the ongoing replanting grant scheme of the Rubber Industry Smallholders Development Authority (RISDA), and the remaining 70,000 ha (including 15,000 ha of coconut to be intercropped with cocoa, coffee and fruits) was to be developed after completion of project works, as part of the ongoing programs under several agencies. The project civil works were to include: (a) construction of a storage dam (called Bekok dam); (b) river improvement works, including river enlargement (79 km), river realignment (14 km), and new levees along tidal reaches (55 km); (c) construction of a catchment separator bund (12 km), and a flood-retarding embankment; (d) construction of a main drainage system consisting of high level - 2 - drains (146 km in non-flooded areas and 69 km in flooded areas) and associated structures; (e) replacement of eight existing bridges on the main rivers; (f) flood protection for the town of Parit Sulong; and (g) development of three coastal blocks through construction of secondary drains (85 km), new agricultural roads (112 km), and resurfacing of existing roads (920 km) and maintenance tracks along existing secondary drains (350 km). In addition, support was to be given to project management in the form of engineering consultancy services, equipment and vehicles, administration buildings, a soils laboratory, and incremental project staff.

4. Evaluation of Objectives. Project objectives were clear and realistic; important for the agricultural sector in Johor State, in particular, and Malaysia, in general; and consistent with the Bank's country assistance strategy in the mid-1980s, which emphasised raising of productivity on smallholder farms and rural poverty alleviation. Conceptually, the project was neither complex nor risky, and, considering that it was the second phase utilizing a project organization which had already evolved and the experience already gained during the first phase, it did not place any significantly heavy demands on the borrower's implementation capacity. The major project risks, viz., land acquisition delays and inadequate counterpart funding due to government budgetary problems, were correctly identified at appraisal. These risks were incorporated into project design by having a conservative pace of implementation over seven years, including a lead time of one year prior to commencement of works during which land acquisition and preparation of further detailed designs would proceed. However, appraisal expectations still turned out to be optimistic, and the project, when completed in 1998, would have spanned 12 years, due to delays caused by a variety of factors (para. 19).

B. ACHIEVEMENT OF OBJECTIVES

5. Although project implementation was delayed, the major civil works (Bekok dam, flood retarding embankment, catchment separator bund, improvement of rivers, and reconstruction/strengthening of the bridges on these rivers) had been completed by the revised loan closing date of June 30, 1996, and the project had substantially achieved its main physical objective of providing flood control and drainage. The following benefits have already occurred: (a) of the 85,000 ha agricultural area expected at appraisal to eventually benefit from project flood control and drainage works, approximately half is estimated to be benefiting already by the end of 1996, which includes areas replanted under RISDA grants, previously abandoned area brought under cultivation, areas heavily damaged in the past due to frequent floods now enjoying sustained production, and areas enjoying increases in yields due to better drainage; (b) all the above areas are benefiting from construction of farm roads, which inter alia have substantially reduced transport cost of produce and inputs, and increased labor mobility to nearby towns (particularly improving opportunities for women to work on off-farm jobs, since transport to and from home is now provided by factories in nearby urban areas); (c) the construction and strengthening of bridges has led to an increase in the volume of traffic and savings in transport costs; (d) increased pumping from the Bekok river has improved water supply to nearby towns; and (e) flood damage to property in the project area, and the human suffering and public costs due to evacuation of affected people to the relief centers, have been virtually eliminated. The entire 85,000 ha is expected to be relieved from internal flooding and to have good road access when the drainage and farm road works are completed in 1998. 6. Poverty Alleviation Impact. To assess project impact, a rapid survey was undertaken by the Project Management Unit (PMU) in October 1996 in five blocks representing different soil types and stages of development. Preliminary results of the survey indicate that flood occurrence and duration were reduced, average farm incomes doubled, and total household incomes quadrupled after the project (details are in the borrower's ICR in Appendix 2). The average farm income reported is RM4,330. This income is low, since oil palm, which is the predominant crop in the area, is mostly young in the five surveyed blocks benefiting from flood control. With a 2.5 hlaaverage farm size in the project area, the net farm income from mature oil palm would be about RM8,000-8,500 per annum or RM700 per month in current prices at the end of 1996. Since these returns are considerably higher than the official poverty threshold of about RM400 per family per month, the project has had a significant poverty alleviation impact already. In contrast to farm income, the average total household income reported in the survey is RMI 1.500 after the project, compared to RM2,1 00 before. A significant part of this increase is attributable to better employment opportunities for household members due to the improved roads system under the pro.ject.

7. Institutional Impact. Although not included in the original scope of project activities, the Bank and the borrower agreed to include the training of a few staff under the project. Thirteen staff attended overseas short courses in water management. land drainage, and polder development, and seven staff made overseas training visits to drainage projects. Training courses were also held locally, for which limited training equipment was procured.

°. Environmental Impact. The overall environmental impact of the project is assessed to be positive. With the elimination of flooding, the farming families, who had left the area in search of better livelihood, are returning to the area. Some environmental aspects deserve special mention: (a) to reduce flooding, the project adopted the environmentally-friendly solution of widening and deepening the rivers, including proper disposal of the excavated material, instead of the unfriendly solution of constructing levees along the rivers: (b) the project contributed to environmental improvement by eliminating riverside swamps; (c) the negative implications of' Bekok reservoir construction were minimal, since mostly rubber and oil palm plantations were submerged. The reservoir water quality is being regularly monitored; and (d) a study of peat soils behaviour, not originally included in the project, was undertaken and provided useful guidelines to the Government to enable it to formulate at a later date a policy for management of these soils. Plantation of rubber and oil palm on these soils, when provided necessary drainage for increasing yields, causes settlements of'these soils, as established by monitoring studies conducted under the project. A specialized international institute known for its work on peat soils was contracted for the interpretation and analysis of' tle monitoring data collected. The analysis of the data showed that water level in the drains needed better control, to avoid settlement of' peat soils and consequent desiccation. The study concluded that deep secondary drains with larger spacing had inferior performance as they lowered the water table excessively near the drains, causing undesirable settlements. The study confirmed the importance of tertiary drains and of maintaining the water level high enough in these drains by constructing check structures.

9. Resettlement. The land acquired for civil works did not llave any permanent residents. In the Bekok reservoir area, 90 squatter families were initially identified as engaged in agricultural -4 - operations. After a detailed review, it was found that only 74 families had to be resettled. Accordingly, facilities were created for access to the selected resettlement site and land development carried out by the concerned agencies, and the families shifted in time to permit the filling of the reservoir in 1990. Each family was provided alternative land (3 acres or 1.2 ha), which is now mostly planted with rubber, since the resettlers had previous experience with this crop. The resettlers also received assistance from the Department of Health and Social Welfare in the first three years, and extension services for rubber were and are provided by RISDA. A socio- economic survey carried out in 1994 by the Ministry of Agriculture showed that only two families had incomes less than RM 200 per month, and were thus in the hard-core poor category. These two families received assistance under the Government's Poverty Eradication Program. In late 1996, only 52 families were still living in the resettlement site; the other 22 families lived in nearby towns and came to the resettlement site to take care of their farms. Most of the rubber trees are now under tapping, and this supplements the resettlers' income from work in the adjacent private estates (some resettlers also get income even now from their plantations in the Bekok reservoir area). Available evidence suggests that the current income and standard of living of the resettlers are better than before resettlement. However, due to cumbersome clearances required, the process of providing land titles to these resettlers has not yet been completed, although initiated about four years ago. This process needs to be expedited.

C. IMPLEMENTATION RECORD AND MAJOR FACTORS AFFECTING THE PROJECT

Implementation Record

10. Civil Works Component. The commencement of civil works was generally delayed, and execution took longer than envisaged, except in the case of the Bekok dam, as shown below:

Civil Works Start Completion SAR Actual SAR Actual

Bekok Dam 02-87 07-87 01-90 11-90 Flood Retarding Embankment n.s. 10-92 n.s. 05-95 Catchment Separator Bund 07-89 09-92 12-90 09-94 River Improvement Works 08-87 to 06-89 to 01-91 to 09-93 to 06-89 07-92 12-92 11-95 Bridges 07-88 04-89 to 06-90 03-92 to 03-93 10-94 Drains and Roads 01-88 to 01-91 to 12-89 to 02-93 to 01-91 12-95 12-93 05-98 (n.s. = not specified)

11. The Bekok dam was constructed on a tributary of the Bekok river, where a reservoir of sufficient capacity was created, and the main river diverted to it by constructing a 6.5 kin long feeder channel. A panel of experts (POE) was engaged for review of the design consultants' - 5 - recommendations, but due to delay in its appointment, the POE had its role limited to the implementation period. As executed, the main dam has two sections, with a height of about 16 m and a total length of 3,900 m, and there are 11 saddle dams having a total length of 1,900 m. There were no major implementation problems. The dam is well maintained and is being monitored for safety. The performance of the dam is satisfactory. So far, the inflow floods have not been large, the uncontrolled concrete spillway (20 m long) having run only twice, and emergency unlined spillway (250 m long) having not run at all. The twin radial gate-controlled outlets have been used continuously to control the outflow from the reservoir. The dam has the dual purpose of holding the floods from the catchment and providing municipal water supply. The flood routing through the reservoir made allowance for about 24 mcm of capacity for water supply up to the year 2010, and 51 mem thereafter. Although the gate-controlled pipe for municipal water has not been used for delivering direct supply, about 21.5 mcm (57,000 cm/day) of water is being pumped from the Bekok river about 2 km downstream of the dam by the private water supply company.

12. The flood retarding embankment on Simpang Kiri river (maximum height of 2.7 m and length of 1,120 m), the uncontrolled concrete overflow spillway (11 m long), the uncontrolled river sluices, and the catchment separator bund between Simpang Kiri and Bekok rivers (maximum height of 3 m and length of 5,590 m) were satisfactorily completed, although with delay, due to slower than expected completion of designs and inadequate counterpart funds.

13. The river improvement works were completed on Sembrong, Simpang Kanan, Bekok, and Simpang Kiri, by widening and deepening of the section and limited re-alignment. During detailed review of implementation designs carried out by the supervision consultants, the levees envisaged at appraisal for confining flood water to the lower reaches of the rivers were mostly replaced by section widening and deepening. Construction started three years late due to inadequate counterpart funding and delays in finalization of designs and tender documents. There were also delays in land acquisition for river widening and disposal of excavated materials. The river improvements resulted in major relief to the town of Parit Sulong from flood damages. The protection works for this town envisaged at appraisal were, therefore, not implemented under the project.

14. As regards replacement of eight bridges envisaged at appraisal for removing obstructions to the passage of floods down the rivers, further examination by the supervision consultants revealed that nine bridges needed replacement with greater width to accommodate future traffic, while two others required strengthening to ensure that there was no obstruction to the river flow. The reconstruction/strengthening of the 11 bridges was completed with major delays, mainly due to the increased work, problems created by the failure of two contractors, and delay in land acquisition. The cost of the work on the bridges increased substantially (para. 18), but the additional investment was worthwhile.

15. The execution of the drainage works and farm roads was divided into 18 contract packages. At loan closing in June 1996, the contracts for all the packages had been awarded, and works had already been completed against four contracts, and were in an advanced stage (likely completion within 1996) against nine contracts. Of the remaining five contracts, works against - 6 -

two are scheduled to be completed by the end of 1997, and against the other three by the end of 1998. The delay in the commencement of work was mainly due to the long time taken in the preparation of designs. These designs were prepared by the Department of Irrigation and Drainage (DID), which had a shortage of engineers. The pace of implementation was affected by the shortage of construction materials and transport vehicles, which was a national problem in the past two years, due to the construction boom in the country. The program for the construction of the tertiary drains, which was to be implemented by the farmers themselves under guidance from the project, progressed well in the areas not having peat soils, but was slow in the area of peat soils. In the latter area, construction of the tertiaries by the farmers will be supervised by the DID to ensure proper control of the ground water level, as recommended by the study of the behavior of peat soils in the area (para. 8).

16. Agricultural Component. The replanting of about 14,300 ha of old rubber under grants by RISDA was almost the same as expected at appraisal (14,500 ha). About 9,200 ha was replanted with oil palm, 2,800 ha with high-yielding rubber, and 2,300 with other crops (mainly fruits). In contrast to the appraisal expectation that 30 mini-estates for oil palm on 3,000 ha would be established under the project, none was established. This was due to the fact that RISDA recognized many problems in the existing mini-estates and took an appropriate policy decision to de-emphasize establishment of new mini-estates.

17. Project Management Support Component. The buildings subcomponent was limited to the construction of the Farmers' Development Center (FDC), the building for the project office having been completed prior to the effectiveness of the Bank loan. The FDC was at an advanced stage of construction by the end of 1996. The proposed laboratory for the Department of Agriculture for monitoring acid sulphate soils was constructed, but funded from a source other than the Bank loan. The procurement of equipment and vehicles was limited to a few items (one front end loader, one backhoe, six four-wheel drive vehicles, and a few office equipment).

18. Project Costs and Financing. At loan closing, project costs were estimated at US$107.6 million equivalent, compared to US$148.3 million at appraisal. However, an additional US$22.2 million equivalent would be needed until project completion in 1998, bringing the total project cost to US$129.8 million equivalent, or 88% of the appraisal estimate. The cost underrun is primarily due to significantly lower costs of Bekok dam (60% lower), river improvement works (25% lower), and land acquisition (30% lower), although cost of bridges increased 16 times, cost of consultancies increased 2.5 times, and cost of drains and roads is expected to be 50% higher by completion in 1998. The final Bank loan amount of US$49.3 million (after cancellations on three occasions from the originally approved US$55.0 million) financed about 46% of the project cost at loan closing (38% of the estimated cost at completion in 1998), with the Government financing the rest.

Major Factors Affecting the Project 19. There were negative as well as positive factors affecting project implementation. Some of the negative factors were within the control of the borrower, and some were beyond its control. The main negative factors were: inadequate counterpart funding in the initial years due to the budgetary problems of the Government; inadequate design capacity in DID leading to a - 7 - significant delay in the implementation of drainage works and farm roads; poor performance of some contractors; and shortage of construction materials, equipment and labor due to the construction boom in the country. The main positive factors for project implementation were: advance action on land acquisition for Bekok dam (although there were some delays in land acquisition for other works); familiarity of the Project Management Unit (PMU) with the Bank procurement procedures; and use of supervision consultants. Some of these factors are discussed further below.

20. Counterpart Funding. Counterpart funding was inadequate in the initial project years to meet the full requirements for the works. Due to the Government's budgetary problems at that time leading to insufficient provision for the project in the Fifth Malaysia Plan (1986-90), it was possible to pursue only Bekok dam construction, and the river works had to be delayed. Continued budget stringency in the Sixth Malaysia Plan (1991-95) delayed the commencement of works for the drainage network and roads. The provision of RM91.8 million for the project in the Seventh Malaysia Plan (1996-2000) is sufficient for the completion of the remaining works.

21. Land Acquisition. Land acquisition needed for the execution of civil works was less than the appraisal estimate of 3,104 ha (dam 1,300 ha, river works 776 ha, and drains and roads 1,028 ha). Actual acquisition through 1998 would be 2,781 ha, of which 1,728 ha for the dam and reservoir were acquired in 1987, 918 ha for the river works were acquired between 1987 and 1990, and 135 ha are in the process of acquisition since 1990 for the drainage and roads network, the requirement for which is being minimized by aligning the drains in the reservations already available, as far as possible. There were delays in land acquisition, mainly due to procedural problems. Compensation for land acquisition has been mostly completed.

22. Procurement. Procurement of civil works was carried out following international competitive bidding (ICB) procedure for three major contracts, and national competitive bidding (NCB) procedure for the rest of the contracts. Force account work was not carried out. Works carried out under ICB contracts amounted to about 40% of the total cost of works. Familiarity of the PMU with the Bank's procurement guidelines greatly facilitated project implementation, and good competition under both ICB and NCB was mainly responsible for the lower costs of Bekok dam and river works (60% and 25% lower, respectively, than the appraisal estimates). The contractors performed satisfactorily except in the case of two contracts for the bridge works and one contract for drainage works and farm roads, which had to be canceled and fresh contracts awarded.

23. Consultancies. The use of supervision consultants under the project resulted in good quality control, efficient contract management, and effective monitoring of completed works. The supervision consultants also reviewed the detailed designs which had been made earlier, and quite a few changes for the better were carried out, specially for the river works and the bridges. The person-months of these consultants, therefore, increased considerably.

D. SUSTAINABILITY 24. Sustainability of project benefits is likely as the Government has adequate technical and financial capacity to operate and maintain project civil works; and, on the agricultural side, -8 - farmers are expected to have continued interest in growing oil palm, given its relatively low labor requirements and reasonably good price prospects. However, sustainability would depend on good operation and maintenance (O&M) of project facilities (see paras. 28-31 for a detailed discussion).

E. BANK PERFORMANCE 25. Bank performance was overall very satisfactory during the project cycle. To ensure proper preparation, the Bank suggested, and the borrower accepted, carrying out of a detailed feasibility study to supplement the earlier study which was weak in many aspects. The revised study adequately covered the technical, financial, economic, environmental, and social aspects, and it was only then that the Bank appraised the project. During implementation, the Bank generally provided quick decisions on procurement matters, particularly those relating to selection of consultants and ICB tenders, and Bank supervision missions had the required expertise. The Bank also agreed to the borrower's request to finance the training of a few staff under the project, thus benefitting project implementation.

F. BORROWER PERFORMANCE 26. Overall performance of the borrower was also satisfactory, except for inadequate counterpart funding in the initial years of the project. Project implementation was facilitated by the familiarity of the PMU with works under Phase I. The major civil works comprising dam construction and river improvements were ready for implementation, with the designs and tender docments almost complete, when the Bank loan became effective. However, there were delays in completing the designs of the drains and roads, which were carried out by DID, even though it was short of engineers. In hindsight, as pointed out in the borrower's ICR, it would have been preferable to have a single body design the whole system (flood mitigation as well as drainage) to ensure integrated and timely implementation. The borrower performed satisfactorily in land acquisition and resettlement of the families displaced from the reservoir.

G. ASSESSMENT OF OUTCOME 27. The overall outcome of the project is satisfactory. Had the implementation period been shorter, the outcome would have been rated highly satisfactory. The re-estimated net present value of the project at a discount rate of 10% is RM57.8 million, and the economic rate of return (ERR) 13%, compared to the appraisal estimate of 14%. The lower ERR at completion is mainly due to lower projected world prices for palm oil.

H. FUTURE OPERATION 28. The PMU has already prepared an O&M plan for project civil works (see Appendix 1, Attachment A). The Johor State DID is expected to take over the O&M of project works from the PMU (under the Federal Government) soon after completion in 1998. The Johor State DID is a competent organization, and has good experience in O&M of similar works. At present, farmers are assisting the PMU by operating the gates on the secondary drains. All maintenance is done under small contracts with the village committees or contractors. Under the State DID, the system is likely to continue. Based on the experience of O&M funding by the Federal Government and - 9 -

State DID for Phase I works, the estimated amount of RM13.5 million per annum required for O&M of Phase II works is within the financing capability of the Government. However. consideration should be given to increasing cost recovery from the farmers by raising drainage charges, which have remained at RMI 5/ha/year since 1970, compared to the current maintenance cost of about RM37/ha/year. In addition, the cost of maintenance of farm roads is about RM40/ha/year.

29. The arrangements for maintaining and monitoring Bekok dam are good. These are expected to continue under State DID after takeover. Sedimentation survey of the reservoir, which has not yet been carried out, is planned to be undertaken now and to be repeated every five years. The six-monthly monitoring of the widened and deepened rivers, stopped after the completion of the supervision consultancy, is planned to be done annually, or. if the regime is found stable, every three years. Monitoring of the impact of peat soils drainage is planned to continue until project completion.

30. For proper control of Bekok dam operation, the project should establish models for: (i) the correlation of the catchment rainfall with the reservoir inflow floods; and (ii) the water levels in the rivers at the critical monitoring points for different floods passing down the dam and flood retarding embankment. Approval for appointment of consultants for the modelling mentioned above is expected from the Government shortly. The modelling is necessary to anticipate the floods at the Bekok dam and to inform the concerned persons if the rivers would flow at high levels.

3511. The following indicators would be used by the PMU to regularly assess project performance and impact in the future: (a) the peak of the maximum flood received at Bekok dam and the outflow peak for the same flood; (b) the area flooded for more than three days continuously; (c) the quality of water in the Bekok dam; (d) the volume of water taken from the Bekok river monthly for water supply; and (e) maintenance expenditure per ha/year for drainage works and farm roads.

I. KEY LESSONS LEARNED

32. The main lessons learned from project implementation experience are the following:

(a) Action on land acquisition and detailed designs for civil works prior to project commencement helps expeditious project implementation, as was demonstrated by the smooth and timely implementation of the Bekok dam construction and river improvement works under the project.

(b) In a rapidly industrializing economy like that of Malaysia, with growing labor shortages, attracting competent technical staff to the public sector will be increasingly difficult, and, therefore, greater reliance should be placed on the private sector for the O&M of project works.

(c) To ensure long-term financial sustainability of O&M of project works, and to promote greater beneficiary participation in O&M, cost recovery from - 10-

beneficiaries should be increased through inter alia appropriate adjustments in drainage charges.

(d) The de-emphasis on the establishment of new mini-estates (none was established under the project, compared to the appraisal expectation of 30 mini-estates with an area of 3,000 ha) was an appropriate response by RISDA to the many problems faced by existing mini-estates, and was consistent with the Government policy to phase out direct involvement of the public sector in agricultural production activities.

(e) Peat soils should not be drained by deep drains with large spacing; instead, shallow drains with less spacing and with water level control should be used to keep the area drained without lowering the groundwater level significantly. - Il -

IMPLEMENTATION COMPLETION REPORT

MALAYSIA

SECOND WESTERN JOHOR AGRICULTURAL DEVELOPENT PROJECT (Loan 2740-MA)

PART II: STATISTICAL TABLES

Table 1: Summary of Assessments Table 2: Related Bank Loans Table 3: Project Timetable Table 4: Loan Disbursements: Cumulative Estimated and Actual Table 5: Key Indicators for Project Implementation Table 6: Key Indicators for Project Operation Table 7: Studies Included in Project Table 8A: Project Costs Table 88: Project Financing Table 9: Economic Costs and Benefits Table 10: Status of Legal Covenants Table 11: Compliance with Operational Manual Statements Table 12: Bank Resources: Staff Inputs Table 13: Bank Resources: Missions - 12 -

TABLE 1: SUMMARY OF ASSESSMENTS

A. Achievementof Obiectives Substantal Nogltaibpicable (V) (1) (1) ) MacroPolicies O 0 0 E3 SectorPolicies 0 E 0 0 FinancialObjectives O 0 0 0 InstitutionalDevelopment 0 0 0 0 lIhysicalObjectives 0 0 0 0 PovertyReduction 0 El 0 0 Gender Issues 0 0 0 E3 OtherSocial Objectives 0 03 0 0 EnvironmentalObjectives 0 0 0 0 PublicSector Management 0 0 0 0D PrivateSector Development 0 0 0 0 Other(specify) 0 0 OB 0

B. ProiectSustainability Likelv Unlikely Uncertain (v') (i) (1)

0 0 0

C. BankPerformance satsfactory Satisfacr Deficeint

Identification 0 0 0 PreparationAssistance 0 0 0 Appraisal 03 0 0 Supervision 0 0 0

D. BorrowerPerformance satisfactory Satisfactor Defiient (1) (/) (1) Preparation 0 0 0 Implementation 0 0 0 CovenantCompliance 0 0 0 Operation(if applicable) 0 0

Highly ffimbhi E. Assessmentol'Outcome satistactorv Satisfactorv Un.satisactQoly unsatisfactory (Vi)) (V/) (V)

0 0 0 0 - 13 -

TABLE 2: RELATED BANK LOANS

Year of Loan Title Purpose Approval Status Preceding oVerations

973-MA, West Johor Agricultural Protection of agricultural lands from 1973 Completed 1984 Development Project flooding

1899-MA, Kelantal Lald Schemes New planting and replanting of 1980 Completed Rehabilitationi Project smailholder rubber, construction of access and farm roads, and coconut intercropping with cocoa and coffee

2147-MA. Malacca Agricultural Construction and improvement of 1982 Completed Development Project irrigation and drainage works, and development of smal holder rubber areas

Following operations

3139-MA, RISDA I Replanting of low-yielding rubber 1989 Completed 3699-MA, RISDA 11 Replanting of low-yielding rubber 1994 On-goilig

TABLE 3: PROJECTTIMETABLE

Steps in Project Cycle Date Planned Date Actual/Latest Estimate

Identification 1973 1973 Preparation Oct. 1983* Nov. 1984 Appraisal Nov. 1983* Apr and Nov 1985 Negotiations Jul. 1984* March 18, 1986 Board presentationi Aug. 1984* Jul. 15, 1986 Signing Aug. 1984- Jul. 30, 1986 Effectiveness Oct.. 1984- Sep. 16, 1986 Project completion Dec. 12, 1993+ Dec. 31, 1998 Loan Closing Dec. 31, 1994+ Jun. 30, 1996

* As per monitoring table of 1982. - As expected from monitoring table, after Board presentation. + As per SAR of June 1986. TABLE 4: LOAN DISBURSEMENTS: CUMULATIVE ESTIMATED AND ACTUAL

(US$ Million)

FY87 FY88 FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97

Appraisal estimate 1.30 6.00 14.40 24.40 33.10 40.20 46.90 52.60 55.00 42.90 46.98 49.38 49.31 49.31 Actual 0.02 2.25 4.80 9.30 13.37 22.99 30.37 38.11 42.83 47.83 49.31

Actual as % of estimate 1.5 37.5 33.3 38.1 40.4 57.2 70.8 81.1 86.7 97.4 100.0

Date of final disbursement September6, 1996

The lower figure in the appraisal estimate representsthe change due to cancellationsof US$4.00 million on Jan. 5, 1993, US$1.62 million on Sep.22, 1994,and US$0.067million on Jan. 10, 1996. - 15 -

TABLE 5: KEY INDICATORS FOR PROJECT IMPLEMENTATION

Estimated Actual Quantity Description Quantity Unit At Loan At Project (SAR) Closing Completion

(a) Works: Bekok dam 3.9 (main darn) km 3.46 3.46 1.9 (saddle dams) km 1.9 1.90 River diversion channel to dam 6.5 km 6.4 6.40 Flood retardation embankment/sluice n.g. km 1.12 1.12 Simpang/Bekok catchment sep. bund 12 km 5.95 5.95 River section improvement 79 km 107.00 107.00 River re-alignment 14 km 11.20 11.20 New levees in tidal reach 55 km 11.00 19.00 Replacement of bridges 8 no. 9 replaced 9 replaced 2 strengthened 2 strengthened Flood protection Parit Sulong town job n.r. n.r. Main drains improvement 215 km 64 203 Secondary drains construction 85 km 628 804 New roads and maintenance tracks 462 km 135 592 Resurfacing existing roads 920 km 100 559

(b) Land acquisition 3,100 ha 2,512 2,781

(c) Resettlement of families 74 no. 74 74

(d) Agriculture development: /1 Replacing l.y. rubber with oil palm 10.000 ha 9,200 9,200 Developing mini estates in above 3,000 ha 0 0 Replacing l.y. rubber with h.y. rubber 3,000 ha 2,800 2,800 Replacing l.y. rubber by div. crops 1,500 ha 2,300 2,300

(e) Procurement of equipment and vehicles job job job

(f) Consultancy services 78 Exp.mm 93.5 93.5 432 Local mm 1700.5 1700.5 (g) Buildings: Project office I no. * * Farmers' development center n.i. no. 1 Lab. for acid sulfate soils I no. ©

].y. = low yield; h.y. = high yield n.r. = not required n.g. = not given n.i. not included * = constructed before project started, under separate funding (3 = constructed by DOA under other funding /1 The actual figures for replanting are upto 1996. However, replantings since 1994 have been funded under the Second RISDA project (Loan 3699-MA). The total replanting through 1993 was about 11.000 ha. - 16 -

TABLE 6: KEY INDICATORS FOR PROJECT OPERATION

No specificindicators for projectoperation and maintenianice (O&M) wereset at appraisal.However, DID wasto remainresponsible for (i) O&M andsafety monitoring of thedarn and other embankments, (ii) maintainiing the carryingcapacity of the rivers andnotifying civic authoritiesthe likely water levelsin the riversfor different outflow from the dam,(iii) O&M of drainagechaninels (except tertiary drainsconstructed and maintainied by the farimers)including control of groundwater in peatareas, and (iv) maintainingthe farn roads and drainage mailitenanicetracks. Johore State DID wasto takeover the responsibility,sooI1 after thecompletion of the works. TIheState Department of Agriculturewas to provideextension service in theentire improved area.

The worksbeing in the finialstages of completion,the responsibilityfor O&M of worksstill restswith the project.The StateDID will take over sooInafter completionof all the works. So far the O&M is satisfactory.A detailedprogram for operation,maintenance, and periodicinspectioni/surveys of the damsand embankments and rivers, includingmathiematical models interrelating catchment rainfall witli runoff at the dam,and river levelsfor different flood discharges,is underpreparation. The StateDepartment of Agricultureand RISDA are providing extensioiiservice in the projectarea.

TABLE 7: STUDIESINCLUDED IN PROJECT

Purpose as defined at appraisal Status Impact of study

PeatSoils Beliavior

The studywas not identifiedat appraisal. Studycompleted. The loweringof watertable in peat It becamenecessary to analyzethe peat soils Datacollection soilshas to becarefully controlled to settlemenitobserved with drainage,and to enable will continuetill avoidsettlement and oxidation. governmentto formulatea policy for management projectcompletion Studywill beused in formulationof of thesesoils. governmentpolicy. - 17 -

TABLE 8A: PROJECT COSTS

Appraisalestimate Actual Iteinl (US$M) (US$M) 1/ Local Foreign Local Foreign Costs Costs Total Costs Costs Total ExecutiveAgency DID

Civil works 33.10 45.15 78.25 26.12 32.43 58.55 Bekok dam 8.45 12.49 20.94 3.18 4.70 7.88 Catci. Sep. Bund and Flood Retard.Emb. 0.96 1.37 2.33 1.34 1.91 3.25 Rivers Improvement 12.40 19.76 32.16 7.09 11.31 18.40 Bridges 0.57 0.57 1.14 7.55 7.54 15.09 Town flood protection 0.53 0.66 1.19 - - - Drainsand roads 10.19 10.30 20.49 6.96 6.97 13.93

Buildings 0.88 0.38 1.26 0.47 0.20 0.67

Land acquisition 34.06 0.0 34.06 20.93 0.00 20.93 Maintenianceduring construction - - - 1.16 - 1.16

Equipmentand velhicles 0.01 0.49 0.50 0.01 0.53 0.54 Consultanitservices 0.63 1.52 2.15 1.41 3.39 4.80 Administrationand Establishment 7.25 0.0 7.25 5.40 0.00 5.40 Training - - - 0.03 0.36 0.39

Executive Agency RISDA Agriculturaldevelopment 17.37 7.46 24.83 10.57 4.54 15.11

Total Project Costs 93.30 55.00 148.30 66.10 41.45 107.55

1/ Actual Costs are up to June 30, 1996.

Upto completionof project in 1998, additionalcosts are estimatedas: US$M Drains and roads 12.60 Land Acquisition 2.80 Administration 4.47 Maintenanceduring construction _228 Total 22.15 - 18 -

TABLE 8B: PROJECT FINANCING

Appraisal estimate Actual/Latest estimate (US$M) (US$M) Local Foreign Local Foreign Source Costs Costs Total Costs Costs Total

IBRD 0.0 55.0 55.0 7.86 41.45 49.31 GOM 93.3 0.0 93.3 58.24 0.0 58.24

Total 93.3 55.0 148.3 66.10 41.45 107.55

GOM will have to incur an additional expenditure of about US$22 million till completion of the project.

TABLE 9: ECONOMIC COSTS AND BENEFITS

Economic Rate of Return Estimated at Appraisal 14% Economic Rate of Return Estimated at Completion 13% Net Present Value Estimated at Completion at a Discount Rate of 10% RM 57.8 million

(Details of economic analysis are at Appendix 3) TABLE 10: STATUS OF LEGAL COVENANTS

Agreement Loan/Credit Text Covenant Status Original Revised Description of Covenant Comments Number Reference Classes(es) Fulfill Fulfill Date Date

LOAN L27400 Sclhedule5 (1) 10 C Government would acquire or Land acquisition has not make available land and interest in been a significant problem. respect of land for project purposes.

Schedule 5 (2) 7 C Government would compensate Compensation given. Two displaced people in accordance hard core poor resettled with prevailing regulations families are receiving assistance under the Poverty Eradication Program

Schedule5 (3) 9 C 12/31/86 By December 1986, the Panel of experts was Government to appoint a panel of appointed and was effective. experts to review dam construction quality, design revisions, and safety programs

Schedule 5 (3) 10 C 12/31/86 By December 1986, the Consultants were employed Government to employ consultants and performed satisfactorily. to assist in supervision of construction of Bekok Dam.

Status. C = Comnpliedwith CovenantClass CD = Complianceafter delay NC = Not compliedwith I. Accounts/Audit SOON = Compliancexpected in reasonablyshort time 2. Financialperformance/generate revenue fromii beneficiaries CP = Compliedwith partially 3. Flow andutilization of Projectfunds NYD = Not yet due 4. Counterpartfunding 5. Managementaspects of theProject or of its executingagency 6. Environenit covenants 7. Involuntaryresettlement 8. Indigenouspeople 9. Monitoring.review and reporting 10. Implementation 11. Sectoralor cross-sectoralbudgetary or otherresource allocation 12. Sectoralor cross-sectoralregulatory/institutional action 13. Other - 20 -

TABLE 11: COMPLIANCE WITH OPERATIONAL MANUAL STATEMENTS

No significanit lack of compliance with applicable Bank manual statements.

TABLE 12: BANK RESOURCES: STAFF INPUTS

Planned Revised Actual Stage of project cycle Weeks US$ Weeks US$ Weeks US$

Troughl appraisal 54.8 139.9 Appraisal - Board 1.9 3.6 Supervisioni 82.4 248.7 Completion 1.3 3.8 TOTAL 140.4 396.0 - 21 -

TABLE 13: BANK RESOURCES: MISSIONS

Number Days Performance Rating Status of Project Month/ of in Field Specialized Implementation Development Type of Problems Cycle Year Persons Skills Represented Status Status

Preparation 4/81 3 1/ Ec,En, Ag Preparation 2/82 4 1/ E, EnLp, HY Preparation 9/82 3 ' En,Lp, F P'reparation 2, 3/83 1 Er, Preparation 10, 11/83 1 J En IPre-appraisal 11/84 3 27 E, En,S, Appraisal 3/85 4 18 E, En, Ag, Post-appraisal 9/85 1 5 En IPost-appraisal 11/85 6 19 En E, A,, Fo,Lp, In

Supervision 10/86 3 5 E, E_1, I I Ag Supervision 7/87 2 14 Ag E, I I DDe Supervision 11, 12/87 1 17 En 2 1 Ad, IF, DDe Supervision 4/89 3 7 2E, Ag 2 1 IF, DDe, DRe Supervision 2-3/90 2 23 2En 2 1 DPr. DRe. IR, DDe Supervision 6/90 1 1 En 2 1 DPr. DDe Supervision 10/90 1 17 En 2 I DDe Supervision 9.10/91 2 11 En'E, 2 I DDe, DPr Supervision 5.6/92 2 8 En,E,. 2 I DDe, IF Supervision 2/93 1 If En 2 1 DDe, IF Suipervision 9/93 1 13 En 1 I DDe Supervision 4/94 1 7 En I I DDe, DPr Supervision 11/94 2 6 En E, S S DDe Supervision 6.7/95 2 7 En.E, S S IR Supervision 5/96 2 5 En,E, S S IR ICR 10/96 2 16 E, E, S S NA

Notation for Skills: E,= Economist,E.= Engineer,A. = Agronomist,Lp= Land UsePlanner, Hy= Hydrologist, S,= StatisticalData Specialist, R. = Road Specialist,In= IndustrySpecialist, F. = ForestrySpecialist. E= EstaurineSpecialist

Notationfor Problems:IF = Insufficient Funds,DDe = Delay in Design,DRe = Delay in Resettlement, Ad = Administrative Problems,Ag = Agricultural Constraints,DPr = Delayin Procurement, IR = Insufficient ConstructionResources

rhe preparationwork wascarried out during missionsfor other tasks,each mission lastingfor aboutthree weeks,

- 23 -

Appendix 1 Page 1

MALAYSIA SECOND WESTERN JOHOR ADP (LOAN 2740-MA) WORLD BANK IMPLEMENTATION COMPLETION REPORT (ICR) MISSION OCTOBER/NOVEMBER 1996

Aide-Memoire

1. A World Bank mission comprising Messrs S. Husain and J. Srivastava visited Malaysia from October 28, 1996 to November 9, 1996, to solicit the views of the Borrower and the implementing agencies in respect of the implementation of the project, and to collect data for the preparation of the ICR. The mission met Ir. Neo Tong Lee, Director General, and Ir. Dr. Hiew Kim Loi, Director of Drainage, Drainage and Irrigation Department (DID), and, during the visit to the project site from October 28 to November 2, 1996, met Mr. Mohamad Noh Samik, Director, West Johor Project, and other project and Rubber Industry Smallholders Development Authority (RISDA) officials in Batu Pahat. The mission also met Mr. C. C. Chan, Director, Johor State DID, and Mr. Nik Mustapha, Deputy Director, RISDA Johor State Office. The mission visited a few blocks in the project area where the drains and farm roads have been completed, and others where the works are in progress. The mission also had discussions on project impact with groups of farmers and the head of the group of resettlers from the Bekok reservoir area. This Aide-memoire, discussed in the wrap-up meeting on November 8, 1996, chaired by Mr. Mohamad Noh Samik, Director, West Johor Project, and attended by Messrs. Abidin Arshad, Ministry of Agriculture; Nik Mustafa, RISDA, Johor State Office; Abu Talib Abu Bakar and Zulkifli Ahmad, DID; and Lee Loke Chong and Zahari bin Shahid, West Johor Project, summarizes the mission's findings and agreements reached, and is subject to the confirmation of the Bank's senior management. The mission thanks the Project Management Unit (PMU), DID and RISDA officials for the assistance rendered and the courtesies extended to the mission.

2. The Loan Agreement for US$55.0 million for the project was signed between the Government of Malaysia and the World Bank on July 30, 1986, and became effective on September 16, 1986. The original closing date of the Loan was December 31, 1994. However, due to inadequate counterpart funding in the initial project years and delays in completion of designs, project implementation was delayed, and the Loan closing date was extended (initially by one year and again by six months) to June 30, 1996, when the Loan was closed. After cancellations of US$4.0 million on January 25, 1993, US$1.62 million on September 22, 1994 and US$0.067 million on January 10, 1996, the remaining Loan amount of US$49.3 million was fully disbursed, with the last disbursement on September 6, 1996.

3. Discussions on preparation of the ICR for the project started in June/July 1995, and in its Aide-Memoire dated July 1, 1995, a Bank supervision mission provided guidance to the PMU for the ICR preparation. It had been agreed then that the PMU, in collaboration with RISDA, will collect as much data as possible to quantitatively assess the agricultural and other socio- economic impact of the project, and, to assist the PMU in this effort, consultants will be hired. - 24 -

Appendix 1 Page 2

Action on ICR preparation was postponed since the Loan closing date was extended to June 30, 1996. Another Bank supervision mission in May 1996 stressed the need to initiate the ICR preparation process, and provided further details in its Aide-Memoire dated May 25, 1996. However, since timely authorization for the appointment of consultants could not be obtained from the Government, the PMU could not prepare and submit the draft ICR to the Bank by the agreed target date of September 30, 1996. The PMU has recently conducted a survey of 3,000 farmer beneficiaries in five of the 15 blocks where drainage and road works have either been completed or are in progress. Based on the preliminary results of the survey, and the Bank mission's findings during visits to the project area and discussions with various stakeholders, a few observations and statements, which also reflect the views of the various stakeholders, on project implementation and impact, and on arrangements for future operation and maintenance (O&M) are made in the following paragraphs.

4. Project Implementation. Although project implementation was delayed, the major civil works (Bekok dam, Simpang Kiri flood retarding embankment, catchment separator bund, improvement of rivers, and reconstruction/strengthening of the bridges on these rivers) had been completed by the Loan closing date of June 30, 1996. Works on drains and farm roads had been partially completed, and were estimated to be already benefitting about 50% of the potential 85,000 ha of the agricultural area. The delay in completion of drainage and farm road works was due not only to insufficient funding in the early years but also to a longer than anticipated time taken in completion of designs and award of contracts. The balance of work on the drains and farm roads, for which contracts are on-going, will be completed by the end of 1998. The completed project works have been properly maintained and monitored, and will continue to be maintained using project funds until the State DID takes over the O&M. The necessary process for handing over the completed works to the State DID, and decision on the sharing of the O&M costs between the Federal Government and State DID are expected to be completed soon. The land acquisition and resettlement of the displaced persons has been satisfactory. The remaining payment for the acquired land and the issuance of land titles to the resettlers needs to be expedited. As regards the agricultural component of the project, the replanting of about 14,300 ha of old rubber, primarily by oil palm, under grants by RISDA from 1987 to 1996, was almost the same as expected at appraisal (14,500 ha).

5. Investment Costs. It is worth noting that the cost of the Bekok dam is only about 40 per cent, and that of the river works about 75 per cent, of the original estimates, resulting mainly from good competition both under international competitive bidding (ICB) and national competitive bidding (NCB) for these works, and partly reflecting a possible over-estimation at appraisal. The cost of bridges has increased 16 times. The original provision for the bridges was evidently based on insufficient study, and, moreover, the width of the bridges is now greater than originally planned to accomodate anticipated increased traffic in future. Consultancies cost 2.5 times the original estimate, mainly due to a substantial increase in design and construction supervision work. The cost of drains and farm roads, when completed, would be about 50 % - 25 -

Appendix 1 Page 3 higher than the original estimates, due to higher density of the drains and roads in the final designs.

6. Project Impact. As the drainage and farm road works are still in progress, and detailed surveys on project impact so far have not been carried out (except for the rapid survey conducted by the PMU in October 1996), a precise quantitative assessment of project benefits can not be made at this stage. However, based on the mission's discussions with the stakeholders and observations of increased economic activities in the areas which have already benefited from project facilities, the overall outcome of the project is satisfactory. The project objectives laid down at appraisal have been mostly achieved: (a) of the 85,000 ha agricultural area expected at appraisal to eventually benefit from the project flood control and drainage works, approximately half is estimated to be benefiting already by the second half of 1996, which includes areas replanted under RISDA grants, previously abandoned areas brought under cultivation, areas heavily damaged in the past due to frequent floods now enjoying sustained production, and areas enjoying increases in yields due to better drainage; (b) all the above areas are benefiting from construction of farm roads, which inter alia have substantially reduced transport cost of produce and inputs, and increased labor mobility to nearby towns, thus helping rapid industrialisation in Johor State; (c) the construction and strengthening of bridges has led to an increase in the volume of traffic and savings in transport costs; (d) increased pumping from the Bekok river has improved water supply to nearby towns; and (e) flood damage to property in the project area and evacuation of affected people to the relief centers has been virtually eliminated. Some of the above benefits will be quantified in the ICR for the estimation of the economic rate of return for the project.

7. Future Operation and Maintenance (O&M). The PMU has prepared an O&M plan for the civil works under the project, identifying the items of work required to be carried out for operation, monitoring of safety and performance, and maintenance; the staff required for these items of work; and the funds needed for proper O&M (Attachment A). About RM 5 million will be required annually for the staff and other administrative costs, and RM 8.5 million for actual maintenance. The Johor State DID is expected to take over the O&M of project works soon after completion in 1998 (para. 4). Based on the experience of O&M funding by the Federal Government and State DID for Phase I works, the estimated amount of RM 13.5 million per annum required for O&M of Phase II works is considered to be within the financing capability of the Government. However, consideration should be given to increasing cost recovery from the farmers by raising the drainage charges, which have remained at RM 6/acre/year since 1970, compared to the current maintenance cost of about RM 15/acre/year.

8. For proper control of Bekok dam operation, the project should establish models for: (i) the correlation of the catchment rainfall with the reservoir inflow floods; and (ii) the water levels in the rivers at the critical monitoring points for different floods passing down the dam and flood retarding basin. Approval for appointment of consultants for the above modelling is expected - 26 -

Appendix 1 Page 4 from the Government shortly. The modelling is necessary to anticipate the floods at the Bekok dam and to inform the concerned persons if the rivers would flow at high levels.

9. It was agreed that the following indicators would be used by the project staff to regularly assess project performance and impact in the future: (a) the peak of the maximum flood received at the Bekok dam and the outflow peak for the same flood; (b) the area flooded for more than three days continuously; (c) the quality of water in the Bekok dam; (d) the volume of water taken from the Bekok river monthly for water supply; and (e) maintenance expenditure/ha/year for drainage and farm road works.

10. Lessons Learned. The main lessons learned from project implementation experience are the following:

(a) Action on land acquisition and detailed designs for civil works prior to project commencement helps expeditious project implementation, as was demonstrated by the smooth and timely implementation of the Bekok dam construction and river improvement works under the project.

(b) Familiarity of the PMU with the Bank's procurement guidelines greatly facilitated project implementation, and good competition under both ICB and NCB was mainly responsible for the lower costs of Bekok dam and river works (60 and 25 per cent lower, respectively, compared to appraisal estimates).

(c) In a rapidly industrializing economy like that of Malaysia, with growing labor shortages, attracting competent technical staff to the public sector will be increasingly difficult, and, therefore, greater reliance should be placed on the private sector for the O&M of project works.

(d) To ensure long-term financial sustainability of O&M of project works, and to promote greater beneficiary participation in O&M, cost recovery from beneficiaries should be increased through inter alia appropriate adjustments in drainage charges.

(e) The de-emphasis on the establishment of new mini-estates (none was established under the project, compared to the appraisal expectation of 30 mini-estates with an area of 3,000 ha) was an appropriate response by RISDA to the many problems faced by existing mini-estates, and was consistent with the Government policy to phase out direct involvement of the public sector in agricultural production activities.

(f) Peat soils should not be drained by deep drains with large spacing; instead, shallow drains with less spacing and with water level control should be used to keep the area drained without lowering the groundwater level significantly. - 27 -

Appendix 1 Page 5

11. It was agreed that the Government's contribution to the project ICR will be formally made available to the Bank by November 30, 1996, so that it could still be included in the final ICR to be submitted to the Bank's Board of Directors by December 31, 1996.

Kuala Lumpur Syed Z. Husain November 9, 1996 The World Bank

Distribution

1. Dato' Ahmad Zabri Ibrahim, Secretary General, Ministry of Agriculture (MOA) 2. Ir. Neo Tong Lee, Director General, DID 3. Mr. Shahabudin bin Shafie, Director General, RISDA 4. Mr. Ahmad Rosli Johari, Secretary, Strategic and Macro Planning Division, MOA 5. Mr. Cheah Kong Lee, Principal Assistant Secretary, Finance Division, The Treasury 6. Ms. Nafsia Abu Bakar, Principal Assistant Director, Agriculture Section, EPU 7. Mr. Mohamad Noh Samik, Director, Western Johor ADP 8. Mr. Nik Mustafa, Deputy Director, RISDA Johor State Office 9. Mr. Abidin Arshad, Resource and Institutional Development Division, MOA - 28 - Attachment A

MALAYSIA SECOND WESTERN JOHOR AGRICULTURAL DEVELOPMENT PROJECT DETAILED OPERATION AND MAINTENANCE PLAN

1. INTRODUCTION. The major engineering infrastructure constructed under the project comprises the following:-

a. Flood Mitigation and River Improvement Works i) Construction of Bekok Dam ii) Widening and deepening of 4 major rivers (1 18 km) iii) Construction of Catchment Separator Bund (5.59 km) iv) Construction of Flood Retarding Embankment (l.12 km)

b. Drainage Works and Farm Roads i) Construction of main drains (203 km) and secondary drains (804 km) ii) Construction and improvement of farm roads (1151 km) iii) Construction of drainage control structures, culverts and tidal control gates (196) iv) Construction of 9 main road bridges and 153 medium traffic bridges

2. OPERATION AND MAINTENANCE (O&M). The main objective of the Second Western Johor Agricultural Development Project was to provide integrated infrastructural development as well as agricultural development with a view to improving agricultural productivity and socio-economic status of the farmers. In order to achieve this objective, all the major infrastructures listed above and expected to be completed by 1998, need to be operated and maintained at specific intervals. In particular, the Bekok Dam, the major river systems, drains, farm roads and structures need proper maintenance in order to function. The detailed operation and maintenance plan as shown at Attachment A-1 and A-2 was prepared based on the following norms and criteria: a. Drain vegetation clearing by farmers' group 4 times a year; b. Desilting of drains and rivers every 3 years; c. Desilting of river by dredging every 5 years; d. River and drain reserve vegetation clearing twice a year; e. Resurfacing of farm roads every 3 years; and f. Filling and compaction of pot-holes periodically.

3. MANPOWER REQUIREMENT. The proposed organisational set-up to undertake fully the operation, monitoring and maintenance works after the completion of all civil works in 1998 is shown in Attachment A-3. A total of 231 posts will be required (Attachment A-4) headed by a Senior Engineer J2. The organisational set-up will comprise four departments as follows:

a. Administration and Finance b. Operation and Maintenance of Drains and Roads c. O & M of Dam and Rivers d. Technical Support - 29 -

Each of the four departments will be headed by a Senior Officer. The Operation and Maintenance department for drains and roads will be headed by 2 engineers and 4 technical assistants, the 0 & M department for dam and rivers will be headed by 1 Senior Engineer, and the Technical Support department will be headed by a Senior Technical Assistant. In general, the number of technicians required to carry out operation and maintenance work was based on similar norms established in Phase I area, i.e. 8,000 - 9,000 ha per technician, and each engineer being responsible for supervision of all maintenance, operation and monitoring works within a drainage area of 80,000 ha.

4. OPERATION AND MAINTENANCE COST. The annual recurrent cost for operation and maintenance can be divided into supervision cost and maintenance of infrastructure which varies depending on the level or standard of maintenance required. Based on the norms established earlier, the annual 0 & M cost for the Second Western Johor Agricultural Development Project area is estimated as follows:-

Supervision Cost : RM 3,800,000 Operating Cost RM 1,200,000 Drains/Structure Maintenance : RM 5,000,000

Farm Road Maintenance . RM 3.500.000 RM 13.500.000 SECONI) WESTERN JOJ101RAG RICUTIURALI)EVELOPMENT PROJEC'T OPERATION AND) MONITORING PLAN

OPERATION MONITORING ESTIMATED CIVIL WORKS SUPERVISION OPERATING COMPONENT DESCRIPTION OF WORKS METHOD/COST DESCRIPTION OF WORK METHOD/ COST COST (RM) I DAM: I) Operate outiflow gates (2 Nos) 3 Techinician and I) Measure seepage flow (26 3 Techinician and 12 1 Engineer and 1,200,000.00 - Bekok & and ComiipensationWater 12 Labourers Nos)and piezometers (29 Nos) Labourers I Techinical Se imbrong Outlet (CWO) gates readi ng. Assistant 2) Recording Rainfall and 2) Inspect dam embankment (5.4 Reservoir Level, Inflow & kin) or cracks/decfcts and toe Outiflov and anialysis areas for scepage. 3) Safety inispection of dam and Yearly in-house and 5 spillway and analysis of data yearly by Dam Monitoring Unit 4) Ilydrographmicsurvey of Licensed Surveyor reservoir 2. River S-stem o - Sg. Kiri River I) Record water levels daily/ 3 Technicians I) Measure discharge(5 stationi) 3 Technicians and I Senior - Sg. Kanan wveeklv(25 Nos) and 8 Labourers and wvater lcvels (16 stationi) 8 Labourers Techinical Rivcr 2) Inspect and clieck Telemetric at regular intervals Assistant - Scibronig River Stations (12 Nos). 2) Verify rating curves - Bekok River 3) Supply Information for Flood 3) Carry ont Monitorinig Survey Licensed Surveyor Warning System (every 3 years) 4) Operate Tidal Control Gates daily to prevent flooding upstreamii(4 Nos) 3 DRAINS: - Secondary (215 I) Operate Drainage Controls Farmers to I ) Measure ground water table 3 Tecinicians and 8 2 Engineers and kim) (DC) (1'96 Nos) operate tinder and subsidenice (Peat Area) L-abourers 5 Senior - Tertiary (850 giiidaiice of (55 Nos) Technicians kimi) Techniicianis 2) Mcasure ground(lwvaler table and hydraulic conduictivrity(47 Nos) 3) Recording water levels in drain (21 Nos) SECONI) WESTIERN .1011ORAGRICUIJLtURAL DEVELOPME.NT PROJIECTI MAINTENANCE PLAN

ANNUAL/PERIODIC MAINTENANCE UNIT COST x ESTIMATED SUPERVISION CIVIL WORKS COMPONENT _ _ FREQUENCY/YEAR MAINTENANCE COST (RM) DESCRIPTION OF WORK MET'HOD COST (RM) DAM: - Bekok I) Painting of Gates, Metal Railings and Control Rooml Quotation RM 80000/yr x 0.5 RM 400,000.00 3.800,000.00 - Sembrouig 2) Grass cutinig on slopes, berms & eimibainkmienil(105 hi) Quotation RM 200/ha x 4 3 ) Remiovalol' Walcr tI Yci ithi & dlec)brisl'oin Reseic oi Quoltalion, 4) Maintenance of slopes, beruis. drain and roads. 2 RI VERS: - Spg. Kiri River 1) River Dredging (150.000n3 ) Tender & RM 5. 0/i 3 x 0.2 RM 1,300,000.00 - Spg. KIanianiRiver 2) River Rakinig (118 kmi) Quotation RM 6,000/kin x I - Bekok River 3) River Excavation/Desilting (80 kin) RM 10,000 x 0(.3 - Sembrong River 4) Clearing of bcriii vegetation (I 18 kin) RM 300/kin x I 3 DRAINS: - Secondary 1) Drain vegetation clearing by JKKK (Farmier's Group) Quiotation RM 350.00/kin x 4 RM 3,100,000.00 - Tertiary 2) Drain excavation or Desilting (1007 kin) RM 4000/km x 0.3 - Stnictuires (196 Nos) 3) Drain Rerserve clearing (1009 kiii) RM 400/kin x I 4) Painting gates and repairs (349 Nos) 4. FARMROADS I) Filling of pot holes periodically (I 150 kin) Tender & RM 1,500.00 x I RM 3,500,000.00 2) Resurfacing of Farm Roads (I 150 kmi) Quoatation RM 6,500.00 x 0.3 5. BUILDING I) Periodic maintenance for 7 Nos FDC Quotation RM 150,000.00 x I RM 200,000.00 2) Provide services for garbage disposal and uipkeepof RM 50,000.00 x I office and FDC ___ RN1 8,500,000.00 WFSTFRN_JOHORINTEGRATFD AGRICULTURAL DEVELOPMENT PROJFCT ORGANISATIONCHARTFOR OPFRATION ANDMAINTENANCF WORKS LACTUALLYNEEDFD)

SENIORfNGINEER J2…------SENIORENGINEER J2

OPFRATIONI ADMINISTRATION& OPERATIONI RIVERENGINEERING & HYDROLOGY& UAINTENANCE FINANCE MAINTfNANCE DAMMONITORING TELEMETRICSYSTEM

|ENGINEER J3 l l | ENGINEERJ3 | | ENGINEERJ3

CLERKN17 | TECH.ASSISTANT J4

NORTHENZONE TECHNICAL & SUILDINGSOUTHERN RIVERENGINEERING/ DAM& SERVICES/DRAUGHTING VEHICLES ZONE WATERMANAGEMENT FLOOD MONITORING

I TFCHASSISTANTJ5 I TECHASSISTANTJ4 5 CLERK N9 1TECHNICIAN J6 1TECH.ASSISTANTJ5 1 TECHNICIANJR 1 TECHASSISTANTJ4 EXISTING 2 TFCHNICIAN J6 2 TECHNICIAN J1 3 TYPIST Nil 4 TECHNICIAN J7 2 TECHNICIANJ6 2 TECHNICIANJ7 3 TECHNICIAN J7 POST 11 TECHNICIANJ7 2 DRAUGHTMANJ7 2 OFFICEBOY NH3 I DRIVER RIO 9 TECHNICIAN J7 I DRIVER RIO I DRIVER RIO 6 DRIVER RID 2 DRIVER RIO 1 DRIVER RIO 441MG Rul 5 DRIVER RIO 8 IMG Rll 121MG Rul 49 IMG Rll 4 IMG Rl 411IMG Rul - 33 -

ATTACHMENTA - 4

SECONDWESTERN JOHORE AGRICULTURAL DEVELOPMLENT PROJECT

LIST OF POSTSREQUIRED FOR MAINTENANCEWORKS

POST NUMBERS REQUIRED 1. Senior Engineer 2 2. Engineer J3 3 3. Engineer J3 (Mechanical) 0 4. Senior Technical Assistant J4 2 5. Technical Assistant 2 6. Senior Technician J6 6 7. Technician J7 28 8. Clerk N7 (Finance) I 9. Clerk N7 (Service) 0 10. Clerk N9 4 11. Store Keeper N9 I 12. Draughtsrnan J7 2 13. Typist NII 3 14. Telephone Operator N 1I 0 15. Office Boy N13 2 16. Foreman R6 0 17. Driver R9 4 18. Driver RIO 17 19. Security Guard RI 1 30 20. Labourer (IMG)R 1 124

Total 231

- 35 -

Appendix 2

BORROWER'S ICR Appendix 2 - 36 - Page I-of 8

SECONDWESTERN JOHORE AGRICULTURALDEVELOPMENT PROJECT IMPLEMENTATIONCOMPLETION REPORT

Achievement of Objectives

Achievement of physical objectives comprising the civil works component, agricultural component and project implementation facilities component were satisfactory altlhough implernentationof civil works componentwas delayed during the initial start-up phase of the project due to administrative and other reasons. All major civil works such as thie Bekok Dam, River Channel Improvement. Flood Retarding Emba2nkment,Catchment Separator Bund and 9 Nos Main Road Bridges with a total contract value of MR 143.2 million have been completed except the 19 contract packages for drainage works. and farm roads which is about 40% completed up to end of Jun 1996. It is anticipated that all outstanding civil works will be completed by end 1998.

The delay in implementation of drainage works and farm roads is mainly due to the fact that the detailed design of these infrastructure which was carried out by DID engineers in-house has taken much longer time than anticipated due to shortage of engineers.

The delay is further compounded by the poor performance of some contractors as well as other factors such as shortage of construction material and labour.

2. Implementation Record And Major Factors Affecting The Proiect

Under the Agricultural Drainage Works component, 18 packages were awarded. Cortstruction of these drainage works began since the year 1991 and are expected to be completed by the year 1998,

Some of the mnaiorfactor affecting the implementation of the projects were as follows:

i) As the tme taken to process the acquired land were very long (six months to. three years) some of the land could not be In possession and this resulted in some deray of the project Implementation and even in some cases were shelved off.

ii) It was found that most of the initial planning and design undertaken by the consultant had to be changed before awarding the contract A totally new planning and design unit had to be formed in-house to study back the initial proposals by the consultants: in which most of the recommenaed planning and design had to be modified to suit the present site conditions. This Is due to its incompleteness and were no longer practicable due to the changes and development that had taken place throughout the project area since Its initial time of study.

iii) During the in-house planning and design stage, only skeletal and inexperienced technical staff were employed hence delaying the Implementation of the aqricijltural drainaQe comoonents. - Appendix 2 37 - Page 2of8

iv) During the period of construction, there were many Mega-project launched by the Government such as the Putra Jaya New Township. construction of the new Kuala Lumpur International Airport at Sepang, upgrading of Karak Highway connecting Kuala Lumpur to Pahagn and constructionof the Second Link tO Singapore. This had resulted in the shortages of manpower, earthworks machinery and building materials specifically Portland cement. Hence a slowdown in the performance of some of the contractors.

v) The labour shoitage were further aggravated by a change in the.governmeifl policy to impose stricter rulings in acquiring foreign workers. For example, the imposition of higher levy.

vi) As the construction of farm roads forms a major part in the completion of most of the packages, frequent rainfalls had hampered its construction hence delaying the project.

3. Bank Performance

The loan 'agreement between the Government of Malaysia and The World Bank was signed'on 30th. July, 1986. The initial loan amount was fifty-five million dollars (US' S 55,000,000) and this was subsequently revised to US $ 49.31 million. The closing date of the loan, originally scheduled on 31 December 1994, was extended until 30 Jun 1996 due to delay in Implementation of drainage works and farm roads.

In general, Bank Performence has been highly satisfactory judging from various aspects such as project identfication, appraised and supervision. Due to unforseen circumstances such as economic recession and lack of experienced engineers during. initial stage of the project, the project implementation ,period of 10 years to complete all physidal works was inadequate. However the major components of the civil works such dams river improvement works, main road bridges and a portion of the drainage works and. farm roads had been completed by 31 December 1994. In particular, project appraisal and supervision had been highly effective as there was hardly any cost over-run and regular supervision mission had been carried out by officials of the Works Bank throughout the duration of the loan.

4. Borrower Performance

The.Western Johore Integrated Agricultural Development Project (IADP) Phase II was scheduled to be completed over a period of 10 years from Jan, 1.986 to December 1994. There was no delay in implementaion of flood control and river Improvement worlks except for the drainage works and fami roads which experienced some, delay at the initial stage of the project. Detailed design for the dams and river works were completed in 1986 and construction works began in 1987. Construction of the major civil works comprising of the Bekok Dam, Sungai Simpang Kid and Sungai Simpang. Kanan River Works, Catchment Separator Bund etc. were completed on schedule. However, due to delay in implementation of detaNed design for drainage works and farn roads, all the major civil works will only be completed by mid 1998, Appendix 2 -38 - Page 3 of 8

In general the performance of the Borrower can be described as satisfactory in preparing,implementing and operatingthe project. The delay in, impfementation,of the drainage works and farm roads was mainly due to shortage of funds and experienced engineers to carry out detailed design in-house. Disbursement applications were submitted to the Worl Bank promptlyafter payment has been made to the contractors. At the end of the extendedloan closing period, the load amount of US S 49.31 million was fully reimbursedby the Bank.

5 Future Operation

The future operation and maintenance of the Second Western Johore Agricultural Development Project has been studied in great detail by the DID. So far two papers have been prepared with regard to the above subject including a paper on the possibility of privatising the Operation and Maintenance works to a privatisedl corporatisedbody.

Under normal circumstancesthe State DID will take over the O & M of the infrastructure after completionof the project. It is estimatedthat the 0 & M cost for PhaseIt amounts to RM 13.5 million comprisingRM 5,0 million for staff and operating cost and RM 8.5 million for maintenanceof projectinfrastructure.

All the infrastructureconstructed under the project, in particularthe dam and major river systems, as well as the drainageand farm road systems, require proper and adequate operation and maintenance In order to obtain optimum benefits from the proposed agricultural development. The operationand maintenance of the Bekok Dam and the major river system will be carried out in accordance with the Designer's Operation Manual and the;DlD has also prepareda separate 0 & M Manual in Bahasa Malaysia for the dam operator or technician. As for the agricultural drainage system, there are two miajor operational requirements,i.e. operation of the drainage control gates and use of check structures to control ground water level in areas with peat and poLential acid suplhate soils. The major maintenancework for the drainage system and farm roads include regular clearingand removal of weeds, vegetation as well as filling of pot holes, grading and compactionof farm roads periodically.

6. Lesson Learned From The Implementation Of The Project

It is felt that the splitting of the design and construction of the flood mitigationworks and agricultural drainage works between the consultant and the department has resulted in the late implementationof the agricultural drainage projects. As the complete design and construction of the agricultural drainage works were done in-house and at a latter period the flood mitigation works, the land acqulsition plan were submitted late. When the contracts were awarded, those areas that were to be alienated were still in the processof acquisition and as such the contractorscould not have qulck possessionof site. Appendix 2 39 'Page 4 of 8

It is preferable that the design of the whole system (Flood Mitigation and Agricuitural Drainage) be undertaken by a single body so as to have a more integrated and a well planned scheme.

For future undertaking of such projects, land acquisition should be planned and settled before the actual construction works begin.

Nevertheless, it is found that the in-house planning and design of the agricultural deainage components by the Department had provided good training ground for the DID staffs. This is due to the imvolvement of the DID staffs in the investigation. planning, design as well as construction and supervision of the works. In addition, this involvement has enable them to understand the conceptual aspect of the project and hence helped them to tackle any problems that arise latter.

It is felt that the financial maintenance requirement of the project was not properly spelled out during the project appraisal stage. This will create problems once the whole project is completed. For example:-

i) The agencies responsible for the maintenance works whether the State of Federal Government.

ii) types of maintenance works required

iii) sources of funds

During the planning and design stage of the agricultural drainage development, there were not enough maintenance tracks being privided due to the existng famiroads being built close to the drains without berms in between. There were also financiaJ and socal constraints in acquiring the land due to the existence of numerous houses situated at the edges of the drain and the road reserves. Any maintenance works for the drains will damage the farmroads and obstruct the smooth traffic flow. It is therefore recommended that adequate maintenance tracks for drain maintenance be provided for similar project in future.

7 Assessment of Proiect Impact and Effect

A qulck survey was under taken to assess the impact and effect of. the project. A random survey was carried out In five areas representing different soil type. and stages of Development. The focus of the study is to Investigate and evalute the Socio-Economic impact of flood mitigation measures and farm road development.

The five different areas that were studied were as follows: Appendix 2 : 40 - 7age50o ft8

Table 1: Areas covered by study

Block Block Name Block Features No of Respondent 1. Sri Dayung A newly developed areas 172 provided with infrastructure for agriculture drainage and potential and acid sulphate area.

A new area of clay soil suitable Sri Medan for cultivation but has not been provided with infrastructure..

2. Ayer Hitam Existing cultivated area on peat 35 soil and have been improved with new and upgraded infrastructure

3. Sri Gading An agricultural area on clay 726 shallow peat soil but has not been provided with infrastructure.

4. Sungai Balang An existing agricultural area on 160 coastal alluvial soil.

5 6. Tg. Semberong An existing agricultural area with 171 clay soil.

With regard to the impact of flood mitigation efforts it was found to be positive as shown in the following tables.

Table 2: No. of Flood Occurances

No of flooding No of flooding Reduction in No, of % Reduction reported before reported after 1993 Flood Occurances of Flood 1992 Occurances

414 95 319 77 Appendix 2 - 41 -Pae 6 o 8

Table 3: Duration of Flood_

Average No Of Days Of Flood % Reduction Before Project After Project .- Block 1 60 9 85.0 Block 2 6 1 83.3 L Block 3 26 13 50 Block 4 88 2 97.8 Block5 19 2 78.9

Table 4: Estimated Damages Coused By Flood (RM/Fam!IV/Occurance

Average (RM) Standard Deviation Block 1 2919.00 J 2393.00 Slaok2 _ _ _- Block 3 1096 1299 Block 4 856 922 Block 5 608 1222 j

As se-er from the table there is significant reduction in the number of respondents reporting flood occurance after the flood mitigation works has been put in place. The duration of flood has also been greatly reduced.

The project has also make a significant impact on the income of farmers in the area. This can be seen from the subsequent tables.

Table 5: Average Farm Income (RMfYear)

Average Farm Income % Before Project After Project Income Income

Block 1 2584 4894 2687 103.9 Block 2 2541 5787 [ 313 123,4 Block 3 2642 5108 3274 123.9 Block 4 1330 4158 2828 212.6

Block 5 1461 2196 . 732 50.13 Total: | 1972 4330 -- 2228 112 Appendix 2 - 42- Page 7 of 8

Tabie 6: No Of Res2ondent and Reported Increase In Farm Income.

% Increase in Farm Income Total . At25% At 50% jAt75% At 160% Block 1 70(85.4%) 6(7.3%) 2(2.4%) 4(4.9%) 82 Block 2 28(80.0%) 1(2.9%) . 6(17.1%) 35 Block 3 216(95.6%) 3(1.3%) 1(0.4%) 6(2.7%) 226 Block 4 135(84.4%) 4(2.5%) 2(1.3%) 19(11.9%) 160 Block 5 67(74.4%) 12(13.30%) 2(2.2%) 9(10%) 90

Total: [516(92.3%) 26(4.7%) 7(1.3%) 49(0.72% 553

' ( )%/

Table 7: Averaqe Total Household Income (RMIYear)

Average Total Household Income % Income Before After Income Biock 1 2584 11223 9250 358 Block 2 2541 13036 11774 463 Block 3 2642 13098 11909 450 Block 4 1330 10908 10303 775__ 8lock 5 1461 9330 7585 519 Total: 2112 11519 9407 445 {o l: ____-______lX__ .-

Table 8: No Of Respondents and Reported Increase In Farm Income

% Increase in Total Household Income Total At 25% At 50% At 75% At 100% Block 1 43(52.4%) 1(1.2%) 38(46.3%) 82 Block 2 16(45.7%) 1(2.9%) - 18(51.4%) 35 Block 3 164(72.6%) 4(1.8%) 6(2.7%) 52(23%) 226 Block 4 68(42.5%) 1(0.6%) 4(2.5%) 87(54.4%) 160

Block 5 32(36.4%) _ - 56(63.6%) 88 Total: 323(54.6%) 7(1.2%) 10(1.7%) 1251(42.5%) 591

)OX,I_ .. _ ._. Appendix 2 - 43- Page 8 of 8

With respect to farm income there is a significant increase after thie project in all thra study areas. Howeverthe majority of respondent have an increase in farm income at less than 25%. When total household income is taken into consideration,the project has contributecd significatly in increase in Incomein all the study areas. More respondents(42,5'?O) are reporting more than 100% increasein total household income. This could be attributed to better employmentopportunities among the household membersin the rural!areas with irnprovedroads systems. Household membersare able to commuteto work and still stay in the villages. This contribute to the significant increase in total housetiold incom6.

In conclusion the study has shown the project has had a significant impact on the Socio-Economicand well being of the farmers in the project area.

- 45 - Appendix 3 Page I of 4 IMPLEMENTATION COMPLETION REPORT MALAYSIA SECOND WESTERN JOHOR AGRICULTURAL DEVELOPMENT PROJECT (Loan 2740-MA)

Economic Re-Evaluation

1. The gross project land area is 210,000 ha. At appraisal, the cultivated area was estimated at 153,000 ha and the rest 57,000 ha consisted of swamps, urban areas, etc. About 42,000 ha in the project area was flooded periodically for various depths and durations, and the rest suffered from the internal drainage problem. About 85,000 ha was expected to eventually benefit as a result of the drainage and flood control works under the project. Of this, 50,000 ha was to benefit through replanting of old rubber, 20,000 ha through bringing into production of swamps and scrub lands with oil palm and diversified crops, and 15,000 ha under coconut through intercropping with cocoa, coffee and fruits.

Economic Benefits

2. As at appraisal, the eventual benefited area under the project is still estimated to be 85,000 ha. Although precise estimates are not available for land use in the project area in 1996, the following was estimated based on data in the feasibility report for the project and area covered by the completed and ongoing drainage and farm road works under the project:

Estimated Project Area Land Use (1996)

Ha Urban and associated areas 20,000 Swamp / Scrub land which can not 16,000 be cultivated even after project Estates 48,000 Forest 11,000 Unknown (no information was available 5,000 in the Feasibility Report because of lack of aerial photography) Possible Hilly Areas (mostly under rubber) 25,000 Smallholder areas with potential 85,000 project benefits

Total 210,000

3. The figures for urban and associated areas and possible hilly areas are rough estimates, while the other figures are based on the feasibility report. Moreover, some hilly areas may be under estates, and some estate areas may also benefit from the project, although, as a matter of policy, estate areas are generally excluded from the project works for drainage and farm roads. - 46 - Appendix 3 Page 2 of 4 4. The 85,000 ha smallholder area to eventually benefit from the project includes about 14,000 ha replanted under RISDA grants, and an estimated 5,000 ha previously abandoned area brought under cultivation, 15,000 ha area heavily damaged in the past due to frequent floods and now enjoying sustained production, and 51,000 ha enjoying increases in yields due to better drainage. The yearly phasing of benefited areas is shown below:

Phasing of Areas Benefiting Under the Project (ha)

A B C D Total 1987 1,930 - - - 1,930 1988 4,000 - - - 4,000 1989 5,700 - - - 5,700 1990 6,850 - - - 6,850 1991 8,000 1,000 5,000 5,000 19,000 1992 9,400 2,000 7,000 6,000 24,400 1993 10,875 3,000 9,000 7,000 29,875 1994 12,000 4,000 11,000 8,000 35,000 1995 13,300 5,000 13,000 10,000 41,300 1996 14,300 5,000 15,000 12,000 46,300 1997 14,300 5,000 15,000 20,000 54,300 1998 14,300 5,000 15,000 35,000 69,300 1999- 14,300 5,000 15,000 51,000 85,300 2016

A - Area replanted under RISDA grants B - Previously abandoned area brought under cultivation C - Area heavily damaged in the past due to frequent floods and now enjoying sustained production D - Area enjoying increases in yields due to better drainage

5. Although replanting of old rubber under RISDA was financed under the project only through 1993 (after 1993, the Second RISDA Project (Loan 3699-MA), which was a national project, came on stream, and it was considered more convenient to include financing of replanting in West Johor Project area under that project), the replanted areas through 1996 have been included in the economic analysis. Of the 14,300 ha replanted through 1996, about 9,200 ha was under oil palm, 2,800 ha under rubber, and 2,300 ha under other crops (mainly fruits). Since the replanting grant rates are the same for oil palm and most other diversified crops, and together these crops account for 80% of the replanted area, and since there are too many commodities in the diversified crops category for which separate analyses would have been unnecessarily cumbersome, costs and benefits of the entire 14,300 ha have been calculated for oil palm only. This understates the economic rate of return (ERR), since the returns from fruits and other diversified crops are much higher than those from oil palm and rubber. The yield profile for oil palm used is the same as at appraisal. - 47 - Appendix 3 Page 3 of 4

6. For categories B and C (para. 3) also, costs and benefits have been calculated for oil palm only, since the areas cultivated are overwhelmingly under oil palm. Although many areas in category C were already under cultivation but suffered heavy damages, and, therefore, only incremental benefits and incremental harvesting costs should be included in the economic analysis, a conservative approach was taken due to lack of precise data by treating these areas as new areas with full investment and maintenance costs and benefits included in the economic analysis. This approach understates the ERR to some extent.

7. For category D in para. 3, the entire area is assumed to be under oil palm and a 10% increase in yields is assumed, consistent with the estimate in the feasibility report for the project. Depending on the water quality, flooding with a duration of three to seven days will cause stress and even death to more susceptible crops like coffee and cocoa. Rubber is somewhat more tolerant and can stand inundation for up to a maximum of two weeks, while oil palm and coconut are able to withstand more prolonged flooding provided the spear is not submerged. The flood water, apart from physically damaging the trees, also affects the productive capacity of the trees, arising from non-collection of latex and damage to fruits, pods, berries, etc. The assumed 10% increase in yields is equal to 2 tons of ffb/ha, since the oil palm in the area is mostly mature, yielding 18-20 tons of ffb/ha/year. The benefit was thus calculated on the basis of 2 tons of ffb/ha. Moreover, a substantial reduction in transport cost of ffb has occurred due to road construction in these areas (transport cost of ffb/ton ranges from RM15 for bad roads to RM10 for good roads in the project area), and, therefore, a transport cost saving of RM5 per ton of ffb (with a yie]d of 20 tons of ffb/ha) was included as a benefit in the economic analysis.

8. As regards intercropping of coconut with cocoa, coffee and fruits (15,000 ha expected at appraisal), by mid-1996 only about 3,870 ha of cocoa and 2,510 ha of coffee had been planted. These benefits are minor and have not been included in the economic analysis.

9. Although benefits from pumping of water from the Bekok river for water supply could not be quantified, they are substantial. Therefore, as assumed at appraisal, 48% of the costs of the dam and appurtenances, and the same proportion of land acquisition and consultancy costs associated with the dam, have been allocated to water supply and excluded from economic costs.

10. The replacement and strengthening of bridges, which now not only have increased lengths required for the widened rivers but also wider roads to cater to expected increased traffic, has led to an increase in the volume of traffic and savings in transport costs. However, these benefits could also not be quantified. Therefore, only 20% of the cost of bridges, which can be ascribed to flood protection, was included in the economic analysis.

11. Precise estimates for the pre-project flood damage to property, the cost of evacuation of affected people to the relief centers, and the cost of relief centers, were not available. Therefore, the appraisal estimate of RM2 million a year in 1985 constant terms (converted to RM3 million a year in 1996 constant terms) was used in the economic benefit stream. - 48 - Appendix 3 Page 4 of 4 12. The economic farmgate prices for oil palm used in the analysis of benefits (in 1996 constant terms) are based on actual prices from 1987 to 1996 in the project area, and projected prices from 1997 onwards using the Bank's commodity price projections of August 1996.

Economic Costs

13. The actual and projected expenditure for the project from 1987 onwards in current prices is shown in Table 1. These costs were converted to 1996 constant terms, and adjustments made as mentioned in paras. 9 and 10, and taxes and duties (5% of civil works costs) excluded, to derive economic costs, which are shown in Table 2 along with economic benefits. The re- estimated net present value at a discount rate of 10% is RM57.8 million, and the economic rate of return 13%, compared to the appraisal estimate of 14%. Appendix 3 Table 1

MALAYSIA SECOND WES1 ERN JOIIOR AGRICULTUJRAL DEVELOPMIENT PROJECT ACTUAL AND PROJECTED EXPENDITURE BY YEAR (RNI '000)

UP TO LOAN CLOSING ON JUNE 30, 1996 AFTER LOAN CLOSING COSTITENI ~~~~~~~~I TO ~ ~~~~~~~~~~~~JANJULY I TOTOA 1987 1988 1989 1990 1991 992 1993 1994 1995 JUN I TO TOTAL DEC 11 1996 1997 1999 COST TILL 1999 2000 2001 2002 CO61IPLETIOJN

I CIVIL WORKS BEKOK DAM 3,156 3,906 6,090 3,937 2,314 720 - 804 - - 20,927 20,927 FLOOD RETARDING EMB , - - - 747 2,231 1,174 548 4,700 4,700 CATCHMENT SEPARATOR BUND 714 2,035 909 3,658 3,658 RIVER WORKS - SEMBRONG 530 685 9S1 1,896 - 25 4,117 4,117 - BEKOK - 1,537 1,249 1,267 926 4,979 4979 - KANAN 8,500 4,437 8,642 2.476 24.055 24,055 - KIRI 2,795 4,502 4,723 2,013 423 958 15,414 15,414 BRIDGES 2,216 3,933 9,634 8,900 9,267 5,404 336 48 39,738 39,738 DRAINS AND ROADS 634 608 1,486 9,561 12,387 5.693 30,369 11,000 16,000 4,500 61,869 SUBTOTAL 3,156 3,906 11,101 12,902 26,490 20,657 27,229 22,553 14,222 5,741 147,957 11,000 16,000 4,500 179,457

2 BUILDINGS - - 457 27 - 567 631 1.682 1,682 3 LAND ACQUISITION 25,890 4,627 12,246 1,526 663 540 6,232 1,603 992 330 54,649 1,000 2,000 4,000 61,649 4 EQUIPMlENT AND VEHICLES 265 . 251 125 145 206 311 50 1,353 1,353 5 INCREMENTAL ADMINISTRATION PNIU 200 400 610 644 780 762 728 390 390 200 5,104 400 750 750 7,004 700 700 DID 896 872 935 941 1.208 839 574 612 793 400 8,070 500 870 840 10,280 810 810 1,500 1,500 SUBTOTAL 1,096 1.272 1.545 I.SS 1,988 1.601 1302 1.002 I.IS3 600 13174 900 1.620 1.590 17.284 t 510 1.510 1.500 1.500

6 MAINTENANCE DURING . . . 285 482 465 1,135 943 646 3,956 700 2,000 3,000 9,656 4,000 5.010 8.509 8,500 CONSTRUCTION 7 AGRICUL1 URE DEVELOPMIENT a) 2.896 5,166 6,104 5,795 6,457 6.526 6.881 (6.570) (6,261) (5,590) 39,825 (3,450 (1,8511 39,825(190) (807) (110) )35)

8 TRAINING . . - . 80 284 624 988 988 9 CONSULrANCIES . 944 1,142 1,654 1,660 2.318 1,855 1,736 1,068 198 12,575 12,575 1' TOTAL. COST 33,383 15,9105 32,138 3,71t3 37,668 32,7Z6 44,277 28.642,410 19,599 8,196 Z76,I89 13,600 Z .620 13,0 314.469 6,5 18.1808 10,00 a) g parenlhess are expenditures inanced unde the Second RISDA Project (Loan 3699-MA) ..hrouchgrIIn1996, and to he fnanced by the Government outside the Second Western J)h.r ProJct f-rn 1997 on-ards The total of R1 39,825,000 cscludes these e.pendit.es in parentheses I.owvo, those eupendiurer are included in eeononic analysis Appendix3 Table 2 MALAYSIA SECONDWESTERN JOHOR AGRICULTURAL DEVELOPMENT PROJECT ECONOMICSTREAMS (M$ MILLION)

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006-2016

INCRENMENI-AI : I S FLOOD PROTECTION/a - - - - 30 3 0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3 0 3.0 3,0 3.0 30 3.0 AGII)CULTUJRE /b 5.4 5.8 4.7 3.5 4.8 8.9 12.2 26.0 42 4 44.5 49,2 59.0 68 1 72,2 76.3 78.4 77.7 75 0 71.7 60.0 AGRICLILI,tREl/c - - - - 2.2 26 28 50 67 6.1 8.8 14.7 20.4 19.0 18.4 179 173 168 16.3 16.3

SUI3TOTAL INCRENtENTAL EENEFITS 5.4 5.8 4.7 3.5 10.0 14.5 18 0 34,0 52.1 53 6 61.0 76.7 91.5 94.2 97.7 99.3 98 0 94 8 90.0 79.3 (In 1996 Constant Terms)

INCREMENTAL COS'I S INVESININ-I: INFRAS1RUC1I-JRE/d 22.7 7.8 18.6 14.2 24.3 18.4 30.4 22.4 17.5 19.3 18.8 9.9 ------AGRICt)L-TURE/e 4.3 6.1 6.7 6.8 19.6 17.4 18.9 21.0 19.1 16.1 8.4 5.3 2.3 ------rl (0IlRAl ION ANI) MAINIENANCIE: INFRASTRUCtJCURE - - - - 0.3 0.6 0.6 1.2 1.0 1.3 2.0 3.0 5.5 6.5 100 100 100 10.0 10.0 10.0 AGIRICIJLTURI./f - - - - 1.5 3.0 43 5.2 104 136 17 2 19.7 23.0 24.8 24.3 23.8 23 1 22.1 21 5 16 0

SULBTOTALINCRFIMENTAI, COSlS 27.0 13.9 25.3 21.0 45.7 39.4 54.2 49.8 48.0 50.3 46.4 37.9 30 8 31.3 34.3 33.8 33.1 32.1 31.5 26.0 (In 1996Constant -crnis)

INCREMFNTrAL.NET BEN-FITS (21.6) (8.1) (20.6) (17.5) (35.7) (24.9) (36.2) (15.8) 4.1 3.3 14.6 38.8 60.7 62.9 63.4 65.5 64.9 62.7 58.5 53.3

INTERNAL RATFEOF RETUtRN - 13%

/a Urban damage avoided /b 34,300 ha (assumed to be new planting or replanting with oil palm) Includes benefits from sale of rubberwood in replanlings under RISDA grants. Ic 51,000 ha (benefit assumed to accrue from increase in yields and reduction in transport cost of oil palm) /d Infrastructure cost less estimated cost of waler supply and savings in transport costs due to construction and strengthening of bridges, and net of taxes and duties of 5%. Also includes costs of land acquisition, equipment and vehicles, buildings, incremental administration, training and consultancies. /e 34,300 ha of new planting or replanling with oil palm /f For 34,300 ha MAP SECTION

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CIVILWORKS COMPLETED UNDER PROJECT I Co-str-vredDrine 9 Pr1evtPerivd -- Evrgemeet vnd ReagnmentELARiver * *. Levees INDONESIA - - - - MiM Dr-i-s lprovemeet / (Sumoterc) SINGAPORE .A~ . Cotchmeet Separator B3nd 3 Drainage Ootlet S-t..ores Ne-eBeRdgeWorks/Strengthening LI- GeDmend Reserir Flood Retarding Ei-borket r Tv.

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