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World Bank Document The World Bank FORoMcuAL USE ONLY Public Disclosure Authorized RePt N.. 5830-IND Public Disclosure Authorized STAFF APPRAISAL REPORT INDONESIA CENTRALAND WEST JAVA PROVINCIAL IRRIGATION DEVELOPMENTPROJECT tbdr~~~~~~~~~ ~ ~ ggwwnb~ da&1bcm ihoWrdB&sfe=l .ti Public Disclosure Authorized .mt= December 9, 1985 Public Disclosure Authorized Projects Department East Asia and Pacific Regional Office I 0 dwmmmMI= a zedrhftd dkirlbodw md =a be nod by reekdemb OdY in dw M amame of CURRENCYEQUIVALENT Currency urit = Rupiah (Rp) USS1.00 = Rp 1,100 INDONESIAN FISCAL YEARE .Aprili - March 31 WEIGHTS AND MEASURES m = millimeter (0.039 inches) cm = centimeter (0.3937 inches) m = meter (39.37 inches)- kam = kilometer (0.62 miles) sq km = square kilometer (0.386 square miles) ha = hectare (2.47 acres) cu m = cubic meter (35.31 cubic feet) MCM = million cubic meters (811 acre-feet) cms = cubic meter per second 1 = liter (1.06 quarts) 1/s = liter/second (0.035 cubic feet per second) kg = kilogram (2.2 pounds) t = metric ton (,205 pounds) FOROMCIAL USE ONLY ABBREVIATIONS, ACRONYMSAND INDONESIANTERMINOLOGY ABPN - Central Government Budget ADS - Asian Development Bank BIE - Bachelor of Engineering BIMAS - Bimbingan Massal Swa Sembada Bahan Makanan (Mass Guidance for Self-Sufficiencyin Foodstuffs) a farm input-credit package BPKP - Financial and Development Supervisory Board DGA - Directorate General of Agraria DGFCA - Directorate General of Food Crops Agriculture DGHRD - Directorate General of Water Resources Development DIRLAT - Regional sraining Center DIRNAS - Service of the Provincial Government DIPERTA - Provincial Agricultural Service DOI-I&II - Directoratesof Irrigation I and II DPP - Directorate of Planning and Progranming EEC - European Economic Community GOI - Government of Indonesia HYV - High Yielding Varieties of Rice INNAS - IntensifikasiMasal (Massive Intensification)a farm input program INPRES - Revenue sharing grant programs from GOI to district and village authorities IPEDA - Iuran Pembangunan Daerah - Land Tax Ir - Master of Engineering Juru - Irrigation Overseer Kabupaten - Administrative District MAE - Monitoring and Evaluation MPW - Ministry of Public Works O&M - Operation and Maintenance Pangemat - Irrigation inspector, head of SubsectiQn (Cabang Seksi) PPL - Village level agriculturalextension worker PPM - Mid-level agricultural extension worker PPS - Subject matter specialist PRIS - Provincial Irrigation Service Repelita - National Five-Year Development Plan (Repelita IV, 1984-89) Sawah - Lowland rice fields SEKNEG - State Secretariat Seksi - Irrigation Section Office Wilayah - Irrigation District Office WUA - Water Users Association sdocmenthas a resd distibutionand may be used by recp_ts onlyin the performanceof I t officialdutis Its contents maynot otherws bediscsed withoutWorld Bank authoriation. INDONESIA CENTRAL AND WEST JAVA PROVINCIAL rRIGATION DEVELOPMENT PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. LOAN AND PROJECT SUKAR RY.......O .......... o..........o ....o......... v -I* BACKGROUND o*oo*ooo.oo.....o..o...o..o.............o..o......oo.......I The Agriculture and Rural Sectoro.....o.oosso.... ........ 1 The Irrigation Subsector..o. ......e .......... oo.so...... 2 The Role of e Bank ...................................... 4 Rationale for Bank Involvement in Provincial Irrigation... 5 II. THE PROJECT AREAo ............ .*...o..oo,o , ,, , ,voe 5 Ceographical Backcground.,..o......... o ....... ... ....... 0 5 Climate and Soi.s 6 Agricultureoooooo*ooswee.seeooesoos 6 Farm Size and Land Tenure...... 0.....................e.. 7 IrrigationDevelopment.... .... .e.g.........o..0.0...0.0.. 7 Provincial Irrigation Servicesvi..o..ce... oeo......ooeo.e. 9 Previous Provincial Projte t s 10 Funding of Irrigation Activitiese.eo.o.o.eeco cmooa 10 Staff and Budget Implications...o.o.oooeo. eo......o... 11 -II. THE PROJECTRocoeOJcoo coeoomeo.eoe CTeo eeoeecee 12 Objectives....... occ...... eeeeee...........e..c.c c...... 12 Project Description.s..................... 00c0e0..0..0 12 Centraland West Java Provincial Irrigationec..occc.cmocco 13 Duupil Subproject and Stdd i e s 17 WaterSupply and Demand00 o.o. 0.eoooeooandee.occooeoe. 18 Status of Project P reparation..o...................0... 19 CostEstimatesoo...........oo. e.e... 19 Financing nosoo.sesoosoo.ooooss c isn go,,.o.o.sooooo.o.ooo...21 ProjectImplementation ............ ....... eec........em...... 21 Procurement ..o......oo..oo.o......es..se..........o........ooo.22 Review of Procurement......o .........................000000 24 Disbursements o...................e.e.c.....oee oe ...... emee.soo 24 Accounts and Audits .. c...... ......000o0c00 ece 25 Environmental Impact..... e.emcee eccceeececeesc0 cc0c.. ....25 This report is based on the findings of an appraisal mission to Indonesia in April/Kay 1985 comprising of Messrs. Aizad N. Khan, Bernard Pasquier (Bank), A.B. Awan (FAO/CP) and Ms. Camilla Clark (Bank). Messrs. Ronald Ng, Hamdy Eisa (Bank) and Paul Suharto (Consultant)participated part time and the report was reviewed by Mr. Jorge T. Caparas. - ii - Page No. IV. ORGANIZATIONAND MANAGEMENT ......... ............ 26 National Level Organization and Management................ 26 Field Level Organization and Mmnagement................... 26 Water Users Associations.......................e...... 27 Dumpil Subproject......................................... 28 28 Monitoring and Evaluation............. ......... ..... .. .28 V. AGRICULTURALSUPPORT SERVICES AND PRODUCTION...... o.......... 29 SujpportServices........ .............. ***......... cc...... 29 Present and Future Cropping Patterns....o..oo............ 30 Yields and Production.eee.oee.ce...e. ccc ccc.... .... 31 VI. PRICES, FARM INCOMES AND RECOVERY OF PROJECT COSTS.......... 31 31 Farm Incomes and Payment Capacity........................... 31 Operation and Maintenance Funding.......................... 33 Cost Recovery Indees..................................... 35 VII. BENEFITS, ECONOMIC JUSTIFICATIONAND RISKS.................. 36 Benefits........................................ 36 Main Assumptions Used in the Economic Analysis....ee.e.e.. 37 Economic Analysis of Typical Schemes.....e..e .........o 38 Sensitivity Analysis............................ .eee 39 Risks ..... .... ..... 41 VIII. AGREEMENTS REACHED AND RECOHMENDATION....................... 42 Tables in the Text 2.1 Irrigation Areas - Systems Requiring Improvement..............ee. 8 2.2 Projected Provincial Irrigation Services Development Budgets... 11 3.1 Sumary of Vehicle Requirements e.. eec..... ................ cc 16 3.2 Project Cost Summary........................... ccc...... e.0960 20 3.3 Financing Plan ..... ................... ee.... ...... 21 3.4 Procurement Arrangements........ ccccc ccccecec..... 23 6.1 Farm Budgets Sumnary. ......................... 32 6.2 Cost, Rentand O&M Recoveryc...............c 36 7.1 Summary of Major Benefits and Beneficiariese..ec.cec...cc..e..se 37 7.2 Project Costs in Financial and Economic Terms .... c..ccc.cu.. .38 7.3 Economic Rate of Return of Project Components .................. 38 7.4 Sensitivity ................................................... 40 7.5 Summary of Impactof O&N Changes ........ .ec 41 - iii - ANNEXES Annex I - Cost Estimates, Consultants Input and ImplementationSchedule Table 1: Project Cost Summary Teble 2: Annual Expendituresby Project Components Table 3: Proposed Allocation of Loan Proceeds Table 4: Projected Disbursements Table 5: Estimated Annual O&M Cost per Hectare Table 6: Summary of Consultants Input Table 7: ImplementationSchedule Table 8: Estimated Cost - Detailed Design through Local Consultants Table 9: Estimated Cost for Training Table 10: Estimated Cost - Monitoring and Evaluation and Water Users Associations Table 11: Estimated Cost - Offices and Juru Housing Table 12: Estimated Cost - Vehicles and Miscellaneous Equipment Table 13: Estimated Cost - IPEDA Mapping and ReclassificationWork Annex 2 - General and Background Table 1: Climatological Data Table 2: Present Land Use of Central and West Java Provinces Table 3: Summary of Farm Size Distributionand Land Tenure Table 4: Areas Covered under Various Bank-assisted Projects Table 5: Staffing Requirement Table 6: Provincial Budgets and Areas DeveLoped - Central Java Table 7: Provincial Budgets and Areas Developed - West Java Table 8: List of Proposed Schemes for Rehabilitation Table 9: List of Proposed Small-Scale Schemes - Central Java Table 10: List of Proposed Small-Scale Schemes - West Java Table 11: List of Proposed Medium-Scale Schemes Table 12: List of On-the-Job Training Programs Table 13: Vehicles Requirement Table 14: IPEDA - Areas of Various Systems Table 15: Key Indicators Annex 3: Crops and Farm Budgets Table 1: Major Food Crops in Central and West Java Table 2: Crop Areas, Yields and Production for Small and Nedium Scale Schemes - Central Java Table 3: Crop Areas, Yields and Production for Small and Nedium Scale Schemes - West Java Table 4: Crop Areas, Yields and Production for Systems to be Rehabilitated Table 5: Dumpil - Crop Areas and Yields Table 6: Dumpil - Total Crop Production Table 7: Price Structure for AgriculturalOutputs Table 8: Price Structure for Agricultural Inputs Table 9: Summary of Physical Inputs per Hectare and Crop Tab'e 10: Supply and Demand for Labor Table 11: Summary of Farm Budgets - iv - Annex 4:- Economic Analysis and Cost Recovery Table 1: Eccnomic Rate of Return Table 2: Cost and Rent Recovery Table 3: IPEDA Tax Structure Table 4: IPEDA Collection Projection Table
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