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The World Bank

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Public Disclosure Authorized RePt N.. 5830-IND

Public Disclosure Authorized STAFF APPRAISAL REPORT

INDONESIA

CENTRALAND WEST JAVA PROVINCIAL

IRRIGATION DEVELOPMENTPROJECT

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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 5: Impact of IPEDA Collection on Cost Recovery

ANNEX 5: Statements of Expenditure

ANNEX 6: Selected Documents and Data Available in Project File

CHARTS

Directorate General of Water Resources Development Organization (IBRD 26628) JratunselunaRiver Basin - Dumpil Area Organization (IBRD 27535) Provincial Irrigation Services Organization (IBRD 27536) IPEDA Organization (IBRD 27712)

MAP - Central and West Java including Dumpil (Mid-Lusi) Subproject (IBRD 19116) INDONESIA

CENTRALAND WEST JAVA PROVINCIAL IRRIGATION DEVELOPMENTPROJECT

Loan and Project Summary

Borrower: Republic of Indonesia

Amount: US$166 million equivalent

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

Project Description: The proposed project would strengthen the irrigation services of Central and West Java Provinces particuLarly in project preparation, implementation, and operation and maintenance (O&N, and improve cost recovery by provision of O&M funding for the irrigation systems through increased land taxes. The project would cover the Government of Indonesia's (GOI) six-year rehabilitationand construction program for small- and mediumrscale irrigation schemes in Central and West Java. The project includes: (a) rehabilitation of 60,000 ha of existing systems and construction of 74,300 ha of small- and medium-scale schemes; (b) preparation of detailed designs for the rehabilitation of existing systems (45,000 ha), development of small- and medium-scale systems (45,000 ha) and upgrading existing systems to be used as pilot training areas for the field staff (50,000 ha); (c) construction of a new run-of- the-river diversion scheme (11,300 ha) in the Dumpil area of Central Java; (d) surveys for updating land classification and assessmei-tfor tax purposes to improve cost recovery; and (e) consultancy services for on-the-job training, project coordination, construction supervision and studies for future projects.

Although Indonesia is now largely self-sufficient in rice, steady increases in national rice consumption and the limited scope for expanding the irrigated area on Java make it vital for the country to intensify food production by rehabili- tating systems where required and by expanding existing village irrigation schemes. At full project development,an incremental quantity of about 347,000 tons of paddy, about 11,000 tons of - vi - maize and 15,000 tons of groundnuts would be produced annually. The increased production would have a substantial impact on raising the incomes of about 530,000 rural families, the majority of whom are smalLholdersand laborers. An equivalent of 45,000 full-time farm jobs would be created in an area where 45Z of the popuLation has incomes below the absolute poverty line, about one fourth of the farm households are landless, and unemployment is high.

Risks associated with the project include a possibLe failure to recruit adequate staff, inadequate provision of O&M funds, and delays in engaging consultants. These risks have been addressed in the project design by identifying staff from completed Bank-assisted projects who would soon be available to work on the proposed project, appointment of consultants as a condition of loan effectiveness, and GOI agreement that a part of the incremental land tax funds generated through reclassification and reassessment of the land tax on irrigated land inuld be allocated directly to the Provincial Irrigation Services for O&K purposes. - vii -

Estimated Cost:

Local Foreign Total - U(US$ million)-

Provincial Irrigation

Civil works and land acquisition 99.7 53.2. 152.9 Consultant services and training, etc. 8.6 8.3 16.9 Land surveys and tax reassessment 2.1 3.2 5.3

Dumpil Subproject and Studies

Civil works-and land acquisition 20.6 14.8 35.4 Consultant services and studies 3.5 3.8 7.3

Administration 10.0 - 10.0

Base Cost 144.5 83.3 227.8

Physical contingencies 13.5 8.1 21.6 Price contingencies 30.5 22.4 52.9

Total Project Cost /a 188.5 113.8 302.3

Financing Plan:

Bank 62.8 103.2 166.0 Government of Indonesia 118.3 - 118.3 EEC 7.4 10.6 18.0

Total 188.5 113.8 302.3

Estimated Disbursements:

Bank FY 1987 1988 1989 1990 1991 1992 1993 - (US$ million)-

Annual 8 22 30 35 34 26 11 Cumulative 8 30 60 95 129 155 166

Rate of Return: 24% overall

/a Including taxes of US$24.2 million. r. BACKGROUND

General

1.01 The Government of Indonesia (GOI) has requested Bank and European Economic Community (EEC) assistance for a program of irrigation development in the provinces of Central and West Java to (a) strengthen the Provincial Irrigation Services; (b) finance a six-year "time slice" of the provincial design and constructionprograms for the rehabilitation of existing systems and development of new small- and medium-scale systems covering an area of about 135,000 ha; (c) construction of a new run-of-the-riverscheme on the Lusi River in Central Java; and (d) technical assistance for training, project management and supervisionof construction, studies and detailed designs for proposed projects Located in Central Java and North Sulawesi. This project would be the third provincial irrigation development project. East Java Province is being supported through the Irrigation XVII Project (Ln. 2119- IND), and eight other island provinces in Sumatra and Sulawesi through the Second Provincial Irrigation Development Project (Ln. 2375-IND). The major project objectives are: (a) to improve the capacity and efficiency of the provinces to design and construct small- and medium-scale irrigation systems, thus allowing the Directorate General of Water Resources Development (DGWRD) to focus on major irrigation works and multipurpose water use development; and (b) to improve cost recovery through a gradual increase in the land tax (IPEDA) and allocation of the additional amounts collected for operation and maintenance of the irrigation systems.

The Agriculture and Rural Sector

1.02 GOI's major objectives for the agricultural and rural sector are to: (a) create productive employment to raise incomes of the rural poor; (b) increase domestic food supply, especially rice, to keep pace with rising demand; (C) expand agricultural exports, particularlyof smallholder tree crops; and Cd) ensure productive and sustainable use of Indonesia's land, water and naturaL resources. Food crop production forms 602 of the agricultural CDP and 18% of the total CDP, with rice being the most important food crop. Since 1968, rice production has grown substantially in response to government interventions,including expansion of the irrigation networks, major changes in rice growing technology and price incentives. While production gains of other major food crops (maize, cassava, soybeans, peanuts, and sweet potatoes) were not so impressive as those for rice, they have exceeded population growth.

1.03 GOI's policies in food crop production, combined with expansion of the infrastructureinvestment program and the strong linkages as well as multiplier effects between agricultural incomes and other rural industries, have had a substantial impact on increasing incomes and levels of living in a large portion of the rural areas. They have also resulted in some reduction in the incidence of rural poverty, even though this still remains a major problem facing GOI. Increases in income have not been uniformly spread, especially to dry land subsistence farmers. 1.04 The Bank, in cooperation with OI, has undertaken a series of sector studies related to food crop production, the most recent of which are PoLicy Options and Strategies for Major Food Crops (October 1982, Report 3686-IND) and the Irrigation Sector Review: An Issues Paper (October 1982; updated in May 1984) which reviewed the irrigation work program and budget included in the GOI Fourth Five-Year Development Plan (Repelita IV) for the period 1984-89.

The Irrigation Subsector

1.05 Irrigation and Rice Production. During 1970-83, rice production grew from 13.1 million tons to 23.3 million tons. Production increased at about 4.9Z per year during 1970-80, but slowed to 2.2X per year from 1981 to 1983 mainly due to droughts. A major part of the increase (75Z) is attribu- table to yield improvementsand the remaining 25Z to increases in the area harvested. About 162 of the production growth can be attributed solely to expansion and improvement in irrigation, about 9X to improved rice varieties and fertil'er use, and about 75Z to the joint interactionof those variables.-/

1.06 Rice consumption increased steadily at 4.5Z per year between 1970- 81, 2.3Z of which was due to population increases and 2.22 to income, price and other effects. In 1980 and 1981, Indonesia became largely self-sufficient in rice, and rice imports plunged from 2.0 million tons in 1980 to 0.3 million tons in 1981. Successive droughts reduced production in 1982 and 1983 forcing Government to import some 1.3 million tons of rice in 1983 and 0.3 tons in 1984. The 1984 crop was about 25.5 million tons, and buffer stocks have increased once again to 3 million tons. It is expected that for most "average rainfall" years, rice production will meet demand, provided the planned rate of irrigation development is maintained.

1.07 In future, improved rice varieties and fertilizer use are likely to play a lesser role in increasing Indonesia's rice production. The use of High Yielding Varieties (HYVs) is already high (about 802 of the irrigated and wetland crop) and is unlikely to expand beyond 90X by 1990. Several traditional varieties are preferred for taste and ceremonial reasons, and are better adap- ted to difficult growing conditions such as saline, flooded or water-short areas. Fertilizer use is also high, particularly on Java, where about 135 kg of nitrogen and 50 kg of phosphate per hectare are now applied. There is evidence that nitrogen application above this would be wasted and cause crop losses due to lodging and greater insect damage. With such already high fertilizer and HYV use, future yield increases will depend primarily on improving the quality of irrigation and water management and expanding irrigation to existing dryland areas.

1.08 Strategy for Water Resources Development. The growing scarcity of water supplies for agriculture,municipal and industrial purposes in Java

1/ Source: Indonesia - Policy Options and Strategies for Major Food Crops, Report No. 3686b-IND, May 1984. -3- highlightsthe need for increasedemphasis on water resourcesmanagement and appropriateallocation of supplies. DCWRD is reviewing,with Japanese Governmentassistance, aspects of this issue in the Brantas Basin. Similar studiesin other parts of Java are needed.

1.09 GOI's irrigationsector investmentsinclude irrigation works to sustainself-sufficiency in rice; swamp reclamationfor transmigration; groundwaterdevelopment to encouragediversification of crops other than rice and rural water supply;and river controlworks to developmulti-purpose use of water resourcesfor irrigation,municipal water supply,flood mitigation, and hydropower. Bank sectorwork, assistedby GOI, coveringthe RepelitaIV plan period (1984-89)concluded that the followinginvestment program would be justified: (a) completionof ongoingrehabilitation (0.5 millionha) and new irrigationworks includingmedium-scale systems (0.2 millionha). New rehabilitationand small-as well as medium-scaleprojects (0.9 millionha) would be pursuedthrough provincial irrigatiin developmentprojects. Constructionof at least two major dams in Java to supplywater for irrigationintensification would be includedas part of the program. These irrigationwurks would enableGOI to maintainself-sufficiency in rice production,which requires an annual growth of 3.5% (harvestedarea growthot 1.4Z and yield of 2.1%);

(b) construction of 0.1 millionha of tidalswamp reclamation (gross area) and a further0.3 millionha of new recLamationworks to accomoodate20,000 to 25,000 transmigrantfamilies per year. An additional0.1 millionha of alreadysettled inland swamp area need rehabilitationand improvedwater control;and

(c) constructionof river controland improvementworks (levees,dams, etc.) and volcanicdebris control in about 20 river basins throughoutthe countryfor more efficientmulti-purpose use of water.

1.10 Investment Needs. Accordingto recentBank sectorwork, the indicativeirrigation program under RepelitaIV is estimatedto cost about Rp 45 trillion(US$4.0 billion) at currentcosts. About one-thirdof this amount,equivalent to the foreignezchange cost of foreign-assistedprojects, is expectedto be financedfrom externalloans. This is somewhathigher than the share (aboutone-quarter) financed from externalloans during Repelita III, and is based on the assumptionthat completionof ongoing foreign- assistedprojects would be given priorityover the next few years. The balanceof the fundingwill come from the Covernment'sdomestic budget. However,GOI has reducedthe programby 30% partlythrough cutbacks in physicalprograms, due to the overallresource constraint and the changing rice situation.

1.11 The indicativeinvestment program shows a significantreorientation of prioritiesaway from large-scaleirrigation and towardsflood control, swamp reclamation,and small-and aediumrscalesystems through provincial - 4 -

services. These changing priorities also reflect a change in the regional distributionof investments from Java to Sumatra and Sulawesi.

1.12 Major Constraints to irrigation development are the deficiencies in systems operation and maintenance (O&M) and inadequate cost recovery for O&M. Current standards of O&H of the main and secondary syscems arL still inadequate,though since 1974 GOI has consistently raised the level of funds (from about Rp 8,000 to Rp 10,500 per hectare in FY85/86). GOI recently decided to slow the rate of new irrigation constructionand divert development funds to improve O&M standards. Bank assistance in O&M is designed to improve the organizationand on-the-job training of the provincial services which are responsible for all O&M activities. Nine provinces with major irrigation areas have been covered under the IrrigationXVII (Ln. 2119-IND) and the Second Provincial Irrigation Development Projects (Ln. 2375-IND), and two more would be covered under the proposed project. The cost recovery issue was reviewed under an extensive two-year study carried out by Gaja Madah University from 1980 to 1982. Recommendationsof the study were accepted by both the Government and the Bank, particularlythat cost recovery of irrigation O&M expenditureswould best be done through the IPEDA (land tax) since the IPEDA tax rate is linked to the productive capacity of farmers and farm lands. Measures to introduce the recommended changes will be carried out in the areas covered by two recently approved Bank-assisted projects, the West Tarum Canal Project (Ln. 2560-IND) and the Kedung Ombo Multipurpose Dam and Irrigation Project (Ln. 2543-IND). A similar approach would be pursued in areas included in the proposed project. Direct allocation of a part of the incremental funds generated through the IPEDA reassessment to the Provincial Irrigation Services for O&M is another goal which would be pursued under the proposed and future irrigation projects.

The Role of the Bank

1.13 Since 1968, the Bank has provided US$1.2 billion for 22 irrigation projects in Indonesia. The earliest projects were designed to repair major systems to increase rice output quickly. Later projects supported rehabilitation of existing systems, drainage, flood control and on-farm tertiary development. The most recent projects include measures to strengthen planning, programming and budgeting capacity and management information systems (IrrigationXV - Cr. 995-IND and IrrigationXVI - Ln. 2118-IND) and to build up the capacity of Provincial Irrigation Services in East Java Province (Ln. 2119-IMD) and in eight other provinces (Ln. 2375-IND).

1.14 During Repelita IV, the Bank's involvement in the sector would emphasize institution-buildingand address persistent sector-wide problems such as poor O&M standards. Lending would focus on:

(a) strengtheningnational and provincial irrigation services and improving their performance for effective and efficient O&M of the irrigation systems;

(b) a small number of technically complex projects such as multi-purpose dams or projects which present difficult economic choices or in which Bank participationcan mobilize significant cofinancing. -5-

These include the West Tarum Canal for irrigation and the Jakarta water supply (Ln. 2560-IND), the Kedung Ombo Multipurpose Dam Project (Ln. 2543-IND) and the proposed Jatigede Multipurpose Dam Project.

1.15 Experience Under Previous Projects. The first six Bank-assisted irrigation projects have been compLeted. 2_roject Performance Audit Reports (PPAR) have been issued for four of them _ and a follow-up Impact Evaluation Report on the first project (Cr. 127-tND, Report No. 4575) was released in July 1983. Implementationdelays and cost overruns, common to the first projects, were caused by protracted bureoucratiz procurement procedures, shortage of local funds, higher than expected inflation, design deficiencies and poor contractor performance. However, since cost increases were more than offset by higher rice prices, economic rates of return at completion exceeded 40Z. The performance audits highlighted the need to improve O&M services; provide technical and administrative support to Water Users Associacions; and promote efficient water use. These problems are recognized in the strategy adopted for Bank assistance (para. 1.14) and have been used in the planning and design of this project.

Rationale for Bank Involvement in Provincial Irrigation

1.16 In common with most other countries, Indonesia has found it more difficult to improve O&M levels for existing systems than to rehabilitate old systems or construct new schemes. Now that Indonesia is approaching rice self-sufficiencyin normal rainfall years, the pressure to expand irrigation systems is slowing, and making the best use of investments already made becomes more urgent. The Bank is playing a key role in supporting decentrali- zation of responsibilitiesto the Provincial Irrigation Services and in resolving difficult institutional issues such as water management; project preparation,implementation and 0&M capabilities;and funding at provincial levels. This and other Bank-assisted projects also place major emphasis on increased cost sharing by project beneficiaries.

II. THE PROJECT AREA

Geographical Background

2.01 The project would cover the provinces of Central and West Java. Central Java Province extends over some 31,700 km2. It has a total irrigated area of about 756,000 ha and a population of 25.4 million. Semarang, its capital and largest city, is connected to other parts of Java with a network of national and provincial roads. The area is well served by air, rail and road transport and port facilities in Semarang. West Java has a gross area of

2/ Credit 127-IND, PPAR Report No. 2047, May 1978; Credits 195. 220 and 289- IND, PPAR Report No. 3269, December 1980. -6-

44,200 km2, a total irrigated area of about 1.1 milLion ha and a population of 31.9 million. Its capital, Bandung, and another large city, Cirebon, are well served by air, rail and road transport. Port facilities in Cirebon connect the province to other islands of the country. The alluvial plains and slopes at the feet of the volcanoes in both provinces are fertile and intensively farmed.

Climate and Soils

2.02 The climate is characterized by uniformly high temperatures, high humidity and heavy rainfall (Annex 2, Table 1). Mean air temperature and relative humidity remain almost constant, at about 270C and 79Z respectively in both provinces. Average annual rainfall, over 80Z of which falls in the wet season (November to April), varies from about 2,000 mm in Central Java to about 2,400 -m in West Java. There is a pronounced dry season from May to October which makes irrigation essential to sustain intensive agriculture. Where water is adequate throughout the year, up to five crops of rice may be grown in two years, though two crops of rice and one non-rice crop is more comon. Solar radiation is sufficient to grow a wide range of tropicaL and subtropical crops.

2.03 Java has fertile soils which cover large areas, generally developed from intermediate to basic volcanic rocks. In areas over 600 m elevation, volcanic ash soils, younger laterites and podzolic soils predominate. The areas lying below 600 m are agriculturallymost important. Soils originating from quaternary and volcanic rocks are exceptionally fertile, but tertiary marl and calcareous soils of low fertility are also found in some parts of both provinces.

Agriculture

2.04 Over half the land in both provinces is used for agriculture, on which over 551 of the population depends for its livelihood. The most economicallyproductive and valued land category is irrigated sawah (paddy land) covering about 24Z and 26Z of land in Central and West Java respectively. Paddy is cultivated in most of the area in the wet season and, where irrigationwater supplies permit, dry season paddy is also cultivated. As re.infalland river flows diminish drastically during the dry season, only aoout 69Z of the agriculturalland in Central Java and 12X in West Java can be planted to rice during the dry season. The remainder is planted chiefly to maize, soybeans, groundnuts, cassava and sweet potatoes (collectively known as secondaryor palawija crops).

2.05 Other agriculturalland includes rainfed sawah where heavy soils permit wet rice to be grown during the rain3 season without irrigation. Tegal land consists of dry upland fields where some dry land rice is g:vwn but maize is the predominant crop. Cassava is extensively planted on tegal land, either in rotation or intercroppedwith maize and other crops. A wide range of crops (includingcoconuts, fruits, vegetables and medicinal herbs) are grown for family use and for sale within house compounds. These represent a major agri- cultura: asset in Java given the excessive density of population, tiny farm holdings averaging less than 0.5 ha in area, and large number of families - 7 - without fields. The distribution of major Land use categories is given in Annex 2, Table 2.

Farm Size and Land Tenure

2.06 The Agricultural Census in 1983 indicated that irrigated sawah Land was distributed among some 2.1 million and 3.2 million farms in Central ann, West Java, respectively. Farm land in the proposed Dumpil component area,- located in Central Java, is distributed among 10,900 farms. About 55%, 76Z and 32% of farms in Central Java, West Java and the Dumpil area, respectively, are less than 0.5 ha, which, in conjunction with the high population density, reflects the pressure on land resources (Annex 2, Table 3). Farm sizes tend to be smaller in West Java particularlynear the urban areas. Almost 70Z and 712 of farms are owner-operatedin Central Java and West Java, respectively, and about 79% in Dumpil. Tenants operate about 15%, 181 and 11 of the farms in Central Java, West Java and Dumpil, respectively, and the remaining 15Z, 11X and 10% are cultivated through sharecropping arrangements in which the landlord and tenant share total production, input and hired labor costs. The tenant and his family provide their labor, and the landlord pays the land tax. Land values vary considerably according to productivity and demand, and range between Rp 8 to 30 million per hectare for irrigated and Rp 3 to 10 million for rainfed landiin both provinces. Similarly, farm leases range between Rp 100,000-350,000/ha/yearfor irrigated land and Rp 60,000- 200,000/ha/yearfor rainfed land in both provinces.

Irrigation Development

2.07 With few exceptions, existing irrigation systems rely on run-of-the- river diversion which can assure water supplies from the start of the wet season through the early part of the dry season. Villages and towns frequently straddle larger canals and canal structures, which serve a major proportion of the Java population'sdrinking water, sewerage and drainage needs.

2.08 Government irrigation services control the eource of each irrigation unit, primary and secondary canals and tertiary offtakes. Within the tertiary blocks of 50- 50 ha, farmer groups operate the tertiary canals. The Provincial Irr_gation Services have field offices organized into irrigation districts (wilayahs),sections (seksi) and subsections (cabang seksi). The Central Java Provincial Irrigation Service is operated through six irrigation districts, 32 sections and 137 subsections. The West Java Provincial IrrigationService is organized at the field level into five districts, 25 sections and 125 subsections. The Jatiluhur area (about 240,000 ha) is not served by the West Java Provincial Irrigation Service.

2.09 From the beginning of World War II until the mid-60s the irrigation systems throughout Indonesia deteriorated progressively due to lack of maintenance. The O&M staff carried out only the most crucial upkeep of major

3/ The area designation was changed from Mid-Lusi to Dumpil at GOI delegation request during the negotiations. -8-

structureswith the meager funding available. While system capacities were declining due to this neglect, water demand was rising due to conversion of sugar estate areas to smallholder paddy cultivation and increased double cropping with new rice varieties. Something had to be done with these systems to arrest the increasing rice imports.

2.10 In 1969, GOI began a large program of irrigation rehabilitation and upgradingwhich has received continuous and progressively larger Bank Group assistance. In Central Java, Bank assistance was provided for the two maior systems, Pemali Comal and Jratunseluna (230,000 ha) while other systems (160,000 ha) were upgraded through assistance from the United States Agency for InternationalDevelopment (USAID), the Asian Development Bank (ADB) and from Japan. Similarly, in West Java, five major systems were rehabilitated (480,000 ha) under Bank assistance and another 70,000 ha of new irrigation and/or rehabilitationhave been or are being assisted under other bilaterai or multilateralprograms. Since 1975, tertiary development and drainage as well as flood control works have been carried out in the rehabilitated areas with assistance from the Bank and other financing agencies. Details covering areas, loan/credit numbers and periods of implementationare shown in Annex 2, Table 4. However, about 401 of the total irrigated area serviced by the Provincial Irrigation Services in both provinces has not yet been rehabilitated.

2.11 In addition, in 1979 the Government began a program of upgrading existing village irrigation schemes and bringing rainfed areas under irrigation. Such schemes for areas of 50 to 400 ha are classified as small-scale schemes (Kecil). These are simple, and require only a small investment (about Rp 1.0 million/ha) for diversion works, a short canal and minimal on-farm works. USAID has supported the Ke:il program since 1975 through its Sedarbana Irrigationand Land Development I and 1I Projects (Nos. 497-0244 and 497- 0252). Areas larger than 400 ha are covered under medium-scale (Sedang) and large-scale schemes. Average investment in the medium- and large-scale schemes ranges between Rp 2.5 million to 3.5 million per ha. Table 2.1 shows the total area in both provinces still requiring irrigation system improvement and the area to be covered under the proposed project. The latter constitutes a six-year time-slice of the total program.

Table 2.1: IRRIGATION AREAS - SYSTEMS REQUIRING IMPROVEMENT

Central Java West Java Total ( ha ) - -

Total Program RhiE litation 205,000 290,000 495,000 Small-scale 85,000 38,000 123,000 Medium-scale 20,000 14,000 34,000 Total 310,000 342,000 652,000 Proposed Project heiabilitation 25,000 35,000 60,000 Small-scale 20,000 30,700 50,700 Medium-scale 15,000 8,600 23,600 Total 60,000 74,300 134,300 -9-

ProvincialIrrigation Services

2.12 Most large-scaleirrigation systems in both provincesare managed by projectunits of CentralDGWRD agencies. The Directoratesof IrrigationI and II (DOI-Iand DOI-II)and Rivers (DOR)maintain project offices to administer plaLmingand developmentactivities. In these centrally-controlledproject areas,however, much of the technicalstaff comes from the provincialstaff who are secondedto projectunits.

2.13 Within the provincialPublic Works Departmentin both provinces, there are threemajor functionalservices which operateroads, housing and urban development,and irrigation.The Chief of the ProvincialIrrigation Service(PRIS) is administrativelyresponsible to the ProvincialGovernor throughthe Chief of ProvincialPublic Works, but for all technicaland per- sonnelmatters, he comes under the jurisdictionof the CentralDCWRD directorate. Withinthe DGWRD,DOI-I is generallyresponsible for guidingand coord- inatingprovincial irrigation activities. Each PRIS, at its provincial headquarters,includes sections for planningand design,operation and maintenance,irrigation development (rehabilitation and new systems),rivers and swampsand logistics(Chart No. 27536). The headquartersoffices including workshopshave about 120 and 65 permanentstaff (includingabout 17 and 12 fully qualifiedengineers) in Centraland West Java respectively.Technical tasks of the headquartersunit include: surveyand design for the national tertiaryconstruction program and for largerrehabilitation; the new irrigation constructionflood controlprogram (except tasks handledby centralunits - para. 2.12);and supervisionand programmingfor O&M. 2.14 A typicalirrigation district (wilayah) employs about 80 staff (about50 in the districtoffice) and is responsiblefor systemsserving an area of about 90,000 to 170,000 ha. Siz wilayahs serve a 750,000 ha area in CentralJava and five wilayahsservice the 566,000ha area in West Java (excludingthe JatiluhurAuthority area). Wilayahoffice staff are responsible for the designof minor rehabilitationworks and repairs,construction supervisionof rehabilitationand new construction,and processingof contractsfor works to be carriedout under yearlymaintenarce budgets.

2.15 There are typicallyfour to seven irrigationsections (seksi) in each district,each with about 50 staff (30 in a sectionoffice) controlling about 25,000to 35,000ha. At this level,attention is focusedon O&M matters,particularly dry seasonwater allocationsand supervisionof maintenance works carriedout by contractors.Section staff also maintainthe con- tact with administrativedistrict officers (Bupatis), executives of the administrativedistricts (Kabupatens) and Kabupatenirrigation committees responsiblefor water allocationand administrationof small irrigationworks constructedwith Kabupatenfunds obtainedunder the INPRES program(GOI's revenue-sharinggrant program). There are 32 sectionsin CentralJava and 25 in West Java.

2.16 Each sectiontypically consists of five subsectionsof about 10 staff each headed by an inspector(pengamat). Each inspectorsupervises the work of about eight irrigationoverseers (jurus), with che jurus meetingand dealingwith farmersand villageleaders in the operationof irrigation - 10 - systems. The juru traditionallyis responsiblefor a 500-700ha irrigation area, settingsiz or sevengates, estimatingflows, recording rainfall and agricultural data, arranging for emergency maintenance of main and secondary canals within his jurisdiction and persuadingfarmers through their village headmen and irrigation water master (ulu-ulu) to maintaintertiary and quaternary canals, to agree on common planting dates to permit rational irrigation and preventwater wastageand theft. The only paid assistance availableto the juru has generally been two unskilled laborers which is clearlyinadequate to maintainabout 5 km of primaryand secondarycanals, 6 to 8 controlstructures-and 6 tertiaryofftakes. PreviousProvincial Projects

2.17 The first provincialirrigation project for the East Java Province (Ln. 2119-ID) has been under implementationsince 1982. Due to GOI budgetary constraintsin FY82/83and FY83/84,some of the constructionworks have been delayed. Adequateprovisions have been made in the FY84/85budget and constructionis now progressing.The trainingcomponent, although limited to one wilayahand one sectionof anotherwilayah, has progressedwell and is consideredsuccessful. The secondprovincial irrigation project for eight other provinces in Sulawesiand Sumatra(Ln. 2375-IND)has been under implementationsince 1984. The civil works componentof the projectis on schedule,but the trainingcomponent was delayeddue to the late engagementof consultants.

2.18 A mid-termreview for the East Java Project was held in Kay 1985 with the participation of the Bank's ResidentStaff in Indonesia(RSI). Lessons learned from the review include the need to fully integratethe projectinto the provincialorganization and the possibilityof expandingon- the-jobtraining activities to other wilayahsof the province. Those lessons have been incorporated into the proposed project.

Funding of Irrigation Activities 2.19 Expenditureson provincialirrigation activities between 1979 and 1985 amountedto Rp 56 billionin CentralJava and about Rp 51 billionin. West Java (Annex2, Tables6 and 7). Eightypercent of these funds originatedfrom the nationalbudget (ABPN)and 20X from the provincialgovernment. O&M funding requirementsfor main and secondaryirrigation systems in both provinces are estimatedto averageRp 18,000per ha in 1985 prices. For systemsdesig- nated as specialprojects (totaling about 250,000ha in CentralJava and 300,000 ha in West Java, or about 35Z of the irrigatedarea of these provinces), O& fundingin the current1985/86 budget year amountsto about Rp 15,000 per ha, or about80Z of the desirablelevel. For the remaining irrigatedareas operatedby ProvincialIrrigation Services, allocations in the current budget year, includingsubsidies provided by the CentralGovernment, amountto about Rp 10,600per ha in CentralJava and Rp 7,900per ha in West Java, or about 60% of the desirablelevel. GOI intendsto continuetho trend of recentyears of increasingthe fundingfor 00M of irrigationsystems by about 1OZ per year in current terms through the Central Government budget and expects that full funding of the required OM would be achieved in about five years. The longer term GOI strategy is to significantly increase provincial - 11 - funding of O&M through increased mobilization of revenues under the land tax (IPEDA) program.

Staff and Budget Implications

2.20 A comparison of the resources available to the irrigation subsector in both provinces and the magnitude of the development and O&M tasks in the subsector indicates that the permanent staff responsible for OM and proposed works are not adequate in terms of numbers, and require changes in organization patterns to emphasize more control of physical field work and less reporting. Additional staff requirements are summarized in Annez 2, Table 5. With the completion of a major portion of centrally controlled projects, seconded staff are gradually being transferred to their parent PRIS. The transfer of experienced staff trained in the implementationof larger schemes over the last ten years would benefit and make the provincial task somewhat easier. The availability of staff has been reviewed by the Personnel Depart- ment of DGWRD and a number of staff to be transferred from DOI-II to the proposed project in FY86/87 is given in Annex 2, Table 5. Regarding 0)1, the experiences of the East T-vt Provincial Irrigation Project (Ln. 2119-IND) indicate the usefulne-s of on-the-job training for irrigation service staff at various Levels and the usefulness of casual labor to provide real maintenance capability. OM funding needs to be incireasedto about Rp 18,000/ha/year (Annex 1, Table 5) to employ temporary Labor and provide other required physical maintenance.

Table 2.2: PROJECTED PROVINCIAL IRRIGATION SERVICES DEVELOPMENTBUDGETS (In billion current Rupiahs)

Source 86/87 87/88 88/89 89/90 90/91 91192 TOTAL

Central Java /a

GoI 2.47 8.30 11.75 13.56 9.69 5.78 51.55 Bank 3.96 13.27 18.79 21.67 15.48 9.23 82.40

Subtotal 6.43 21.57 30.54 35.23 25.17 15.01 133.95

West Java /a

GOI 2.73 7.86 10.84 11.69 8.43 5.56 47.11 Bank 4.32 12.43 17.12 18.45 13.32 8.78 74.42

Subtotal 7.05 20.29 27.96 30.14 21.75 14.34 121.53

/a Operation and maintenance budget excluded. - 12 -

2.21 The budget implications for both provinces are summarized in Table 2.2. Total investment in the irrigation sector by both provinces will increase from Rp 57 biLlion between 1980 and 1985 to Rp 255 billion between 1986 and 1991. This represents a 220X increase in constant 1985 rupiahs. However, the portion of the investment programs financed by the provincial and the central governments will remain at the same level in real terms during the six years of the project (1986-91) as during the 1980-85 period.

III. THE PROJECT

Objectives

3.01 The main objectives of the proposed project are in line with the Government'sdevelopment strategy for the irrigation subsector. The project aims at complementing previous Bank support to water resources development in Indonesia's Central and West Java Provinces and increasing food crop production to a sustainable self-sufficiencylevel, thus reducing food grain imports and foreign exchange expenditures for rice. The project would also enhance employment and incomes in the agricultural sector.

Project Description

3.02 The project would include:

Central and West Java Provincial Irrigation

(a) Irrigation Development

i) rehabilitationof existing irrigation systems covering about 60,000 ha, development of new or expansion of existing small- and medium-scale schemes for about 74,300 ha and support for upgrading the existing rehabilitated systems as pilot training areas for the field staff; and

(ii) preparation of detailed designs covering a total area of about 90,000 ha *n both provinces for the rehabilitationof existing systems and development of small- and medium-scale systems as well as about 50,000 ha to be upgraded as pilot training areas for the field staff.

(b) Institutional Development and Facilities

(i) consultancy services for on-the-job training and project coordination in both provinces;

(ii) construction of offices at the provincial headquarters and overseer (juru) houses in both provinces;

(iii) initial and recurrent yearly expenditures related to field training, monitoring and evaluation and strengtheningof the water users associations; - 13 -

(iv) procurementof vehiclesfor the ProvincialIrrigation Services, trainingactivities and constructionsupervision; and

(v) procurementof miscelLaneousoffice, survey and hydrological equipment. (c) IPEDA Surveysand Mapping (i) aerial photographs,rectified photomaps, demarcation of property boundariesand listingof land ownersfor each village coveringa total gross area of about 670,000ha which were rehabilitated under Bank and ADBassistance; (ii) provisionof officeand surveyequipment and computertraining for the IPEDA centraland provincialstaff; and

(iii) technicalassistance through consultancy services for the review and supervisionof mappingand surveyactivities. DumpilSubproject and Studies

(a) Irrigation Development Ci) constructionof a new run-of-the-riverdiversion scheme on the Lusi River at Dumpilin CentralJava servingabout 11,300ha of new irrigableland;

(b) ConsultancyServices

{i) for the constructionsupervision and preparationof construction drawingsfor the Dumpilarea;

(ii) for the detaileddesign of drainageworks in Dolok-Penggaronand studiesas well as relateddesign of the Tuntang-Jragungarea irrigationand drainagedevelopment; and

(iii) for the feasibilitystudy and detaileddesign of the Bongo irrigationproject in North Sulawesi.

Centraland West Java ProvincialIrrigation

3.03 Rehabilitationof ExistingIrrigation Systems. A total area of about 205,000ha in CentralJava and 290,000ha in West Java requiresrehabil- itation. These areas are under the jurisdictionof ProvincialIrrigation Servicesand were not coveredunder the previousrehabilit,ticn program. GOI plans to rehabilitatethese systemsover a periodof 15 to 2'.years. An extensivepriority evaluation was carriedout duringthe projectprex-ration which gave weightsto water availabilityand use, size of schemes,expansion of irrigableareas, condition of the system,a minimumeconomic rate of return (ERR)of 13Z and distributionwithin each wilayahof both provinces. Using a time-sliceapproach, the projectwould financeconstruction during the first six years which would cover about 25,000ha in CentralJava and 35,000ha in - 14 -

West Java. The projectwould also providefor detaileddesign of about 20,000 ha in CentralJava and 25,000ha in West Java. About 121 schemeswould be rehabilitatedunder this project. The schemesto be rehabilitatedwill be restoredto their originalconditions. However,departures from original designswill be made when warranted. Siltation,the major constrainton efficientirrigation deliveries, will be minimizedby providingimproved desiltingworks. In addition,weirs, intakes,cross drainageand control structureswill be repaired;defective or missinggates will be replaced;and tertiarysystems will be built where required.

3.04 Developmentof Small-ScaleSchemes. Irrigationsystems of 50 to 400 ha size are locatedmainly in the hilly parts of the project. These were built as villageschemes with temporarydiversions and short channels. Since they are not under the jurisdictionof the ProvincialIrrigation Services they have becomeinoperative due to lack of maintenance. Under the project these systemswould be rehabilitatedand improvedby constructingpermanent diversion weirs,restoring canal cross-sectionsand repairingtheir control structures.Their comnandareas would be extendedwhere feasibleand access to them would be improved. Such systemswould cover about 20,000ha (81 schemes)in CentralJava and 30,700ha (126 schemes)in West Java. Detailed designswould be producedfor about 25,000ha. To ensureproper operation and maintenanceof such schemesin future,assurances were obtainedat negotiations that:

(a) diversionstructures would be operatedand maintainedby the ProvincialIrrigation Services and wheneverthe servicearea is dividedinto multipletertiary blocks, channels leading to the tertiaryblocks would also be operatedand maintainedby the IrrigationServices;

(b) OI would provideadequate OM funds for such schemes.

3.05 Developmentof Medium-ScaleSchemes. Mediumrscaleschemes are plannedfor areas with firm and perennialsources of water. For most of these schemes,part of the areas are alreadypartially irrigated by existingvillage schemes. Serviceareas of these schemesvary from 400 ha to about 3,500 ha. The projectwould includeconstruction of 13 schemeswhich will combine some of the existingsmaller village schemes covering a total area of about 15,000 ha in CentralJava and five schemescovering about 8,600 ha in West Java. The projectworks would includediversion weirs, main and secondarycanals with relatedstructures, drainage works and on-farmtertiary development (Annex 2, Table 11). Detaileddesigns are availablefor the 14 run-of-the-river schemes,which would be reviewedby the projectconsultants before construction. The projectwould providefor the detaileddesigns of the four remainingschemes.

3.06 All of the schemes are run-of-the-river diversion schemes except two in Central Java, the Klogo and the Randugunting schemes. The Klogo scheme now under construction has a net irrigable area of about 1,600 ha. An equalizing reservoir with a live storage capacity of about 2.4 MCM is fed from a 2-km long canal with a designed flow of 1.1 M /sec. The feeder canal abstracts flow from a major perennial stream. The reservoir works are expected to be - 15 - completed in 1986. The Randugunting scheme is designed to serve a net irrigable area of about 1,450 ha from a reservoir of about 2.5 MCH capacity. Only 501 of the area would be under palawija crops during the dry season. From the economic point of view, it is not an attractive scheme because it would require an investment of about Rp 3.5 million/ha and inundation of part of a village affecting 500 families. The Central Java Irrigation Service, with the assistance of consultants, would prepare a detailed feasibility study during the first two project years which would include a resettlement plan for the affected families and an environmental study. Construction of the scheme is programmed during the last two project years, subject to the satisfactory outcome of the feasibility study and Bank agreement. In the case of West Java, the Cibuni/Cikaso scheme is programmed to be implemented in two phases. Under phase I, for an area of about 3,500 ha, the scheme would be implemented by tapping springs and improving existing temporary weirs witLin the area as the source of water. Under phase II, an additional area of 4,500 ha would be studied at the feasibility level under the project, and if found feasible, detailed designs would be prepared by the consultants. Implementa- tion of phase II works is not included under the project.

3.07 Institutional Strengthening of Two Provincial Irrigation Services. Training and upgrading of provincial staff is one of the main objectives of the project. Training would be covered under two categories. The first category would be for professional and experienced subprofessional staff where a well defined program is being followed by the manpower training unit (DIKLAT) of the Ministzy of Public Works (MPW) under a Bank-assisted project (Ln. 2258-IND). The program covers such disciplines as project management, project planning and specialized technical aspects related to surveys, mapping, cost estimating and construction supervision. The courses offered are of two to three months' duration. The second category would be on-the-job training which would be carried out under the project. The proposed training is patterned after the model developed under the East Java Provincial Irrigation Project (Ln. 2119-IND). On-the-job training would be carried out by internationallyrecruited consultants. Training would emphasize project planning, design and planning criteria, and checking and supervision of design. The bulk of the training would be through short introductory seminars, wo,rkshopswhich would review designs done by the Indonesian consultants and field checking before and during construction. Field training for O&b staff would cover formulation and application of O&M procedures, planning and supervisionof activities such as upgrading and O&M in the pilot units, and training of instructors to train lower level field staff. Training wouLd be carried out by wilayah training teams consisting of three instructors in each wilayah. The wilayah training team would be trained by the Central Training Team consisting of three experienced O&M staff and consultants. Pre- paration of training material and the training of the Central Training Team would take place during the first project year. The Central Training Team of each province would train two wilayah training teams each year. The on-the- job training programs are listed in Annex 2, Table 12.

3.08 Consultants would be engaged for (a) training and upgrading of project staff; (b) coordinating the application of established procedures related to planning, design, construction supervision,acceptance of completed works, operation and maintenance and budgeting; (c) review and acceptance of - 16 - detailed designs and tender documents prepared by other consultants; (d) feasibility study and modification of detailed design for the Randugunting scheme in Central Java and the second phase of the Cibuni and Cikaso systems in West Java; (e) preparation of a plan of action related to monitoring and evaluation and Water User Associations; and (f) mid-term and final completion review of the project, including assessment of project impact on various groups of project beneficiaries. Details of consultant input are summarized in Annex 1, Table 6. Receipt of proposals for training and coordination consultancy services from short-listed local consultants expected to associate with directly appointed foreign consultants and approval of tender documents for construction of the Dumpil diversion dam by concerned GOI agencies and SEKNEG would be conditions of Board presentation, and signing of the contract for the services would be a condition ot Loan effectiveness (para. 3.22).

3.09 Office space is limited at both provincial headquarters and additional space is required to accommodate the consultants, design teams and project staff. Provision has been made to expand existing facilities by about 500 sq m in Central Java. About 600 juru houses would also be built under the project. Both provinces would be provided with additional office, survey, hydrologic and miscellaneous equipment (Annex 1, Table ?').

3.10 Vehicles and motorcycles are locally assembled, and GOI prohibits their importation. All vehicles and motorcycles for GOr use are centrally procured through annually negotiated contracts with a small number of assemblers. These items (US$1.4 million) will be regarded as reserve procurement.

3.11 Vehicle requirementshave been carefully reviewed within GOI and by the Bank and are summarized in Table 3.1. The Provincial Services throughout Indonesia have limited numbers of vehicles available and such shortages have recently developed into a major constraint which affects many ongoing projects. Without mobility, the training component for the project cannot proceed and construction supervision will suffer. Assurances were therefore obtained during negotiations that Government would: (a) provide seven four-wheel-drive vehicles, 20 light servi:e vehicles, five microbuses, 140 motorcycles and 660 bicycles for both provinces before September 30, 1986; and (b) ensure delivery of the vehicles required for 1987 (Table 3.1) by September 30, 1987. A schedule of various events from the availability of funds to the delivery of vehicles is also given in Table 3.1.

Table 3.1: SUMMARY OF VEHICLE REQUIREMENTS

Number Required Type of Vehicles 1986 I987 Total

FWD vehicles 7 8 15 Light service vehicles 20 28 48 Microbuses 5 8 13 Motorcycles 140 167 307 Bicycles 660 696 1,356 Schedule of Events Funds become available 4/01/86 4/01/87 Transfer of funds to SEKNEG 4/30/86 4/30/87 SEKNEG places procurement order 6/30/86 6/30/87 Delivery of vehicles to project 9/30/86 9/30/87 - 17 -

3.12 IPEDA Surveysand Mapping. Under the KedungOmbo MultipurposeDam and IrrigationProject (Ln. 2543-IND)and the West Tarum Canal Project (Ln. 2560-IN), GOI has agreedto reclassifyirrigated lands in projectareas and reassessthe IPEDA for these lands. The same procedurewould be followed under the proposedproject. However,in view of the limitedcapacity of IPEDA staff at both centraland pro-icial levels,the reclassificationwould focus on major systemsrehabilitated under previousBank and ADB-assistedprojects. This is expectedto cover a gross area of about 670,000ha and would include the PemaliComal, the westernpart of the Jratunselunaproject (ezcludingthe KedungOmbo service area) and the Gambarsari-Pesanggrahan systems in Central Java and the Cirebon,Sumedang, Rentang, Cisedane and Ciujungsystems in West Java. The projectwould providefunds for: (a) compilationof maps using existingor new aerialphotographs to producerectified photomaps; (b) demar- cationof villageand landholdingboundaries for productionof 1:2,500scale line maps; (c) reclassificationand reassessmentof each holding;(d) office equipmentand computertraining for the IPEDA centraland provincialstaff; and (e) technicalassistance through consultancy services for review and supervisionof mappingand surveyactivities. Prior to loan negotiations,the DirectorateGeneral of Taxes provideda detailedimplementation schedule for mapping,reclassification and reassessmentof the areas mentionedabove which aimsat completionof reassessmentby September30, 1990, and a tentativeplan for the remaining irrigated areas of each province. DuapilSubproject and Studies

3.13 Civil Works. A new run-of-the-riverdiversion scheme would be developedon the Lusi River in CentralJava to serve a net irrigablearea of about 11,300ha. The proposeddiversion dam (barrage)located near the villageof Dumpilwould consistof a concretestructure with five gates (12 x 7.5 m size),an irrigationintake structure at the right abutment,under- sluicesto flush sediment,a sedimenttrap, a bifurcationstructure on the primarycanal to distributeflow to the right and,left main canal system and a siphon across the Lusi River for the left bank service area. The conveyance system would consist of right and left main canals 48 and 31 km long, respec- tiveLy. Thirteen secondary canals, with a total length of about 45 km, are planned to serve a 6,700 ha area on the right bank. The remaining area of about 4,600 ha on the left bank would be served by 11 secondaries, 34 km long. The on-farm development works would consist of tertiary and quaternary laterals to serve 40 to 80 ha blocks. Inspection roads with a 4 m wide gravel pavement would be provided along one bank of both main canals and major secondary canals.

3.14 Studies and Design. Consulting services would be funded for:

(a) Dumpil (Central Java). Constructionsupervision and preparationof construction drawings;

(b) Dolok-Panggaron Drainage and Tuntang-Jragung (Central Java). Detailed designs for: (i) drainage works covering about 6,500 ha at Dolok-Penggaron; (ii) an updatedmaster plan and feasibilitystudy to integrate the water resources of the Tuntang and Jragung Rivers - 18 -

to servicea total area of about 40,000ha and (iii) detailed design,including revision and updatingof the GlapanBarrage on the TuntangRiver followingreview of the study by GOI and the EEC; and

(c) Bongo (NorthSulawesi). Feasibilitystudies for the proposedBongo irrigationscheme coveringabout 12,000ha. Subjectto the findings of these studies,which would be reviewedby the Bank and GOI, detaileddesigns would be carriedout. 3.15 Assuranceswere obtainedat negotiationsthat consultantswould be employedin accordancewith Bank 2uidelinesto undertaketraining, coordination, studies,designs and constructionsupervision according to terms and conditionsagreed with the Bank.

Water Supplyand Demand

3.16 ProvincialIrrigRtaon Development. Estimatedwater requirementsare based on rainfall,evapotranspiration and soil type. Averageannual rainfall is estimatedas 2,000 mm for CentralJava and 2,400 mm for West Java. Annual evapotranspiration,estimated using the Penmanmethod, varies between1,300 to 1,400m. Deep percolationafter puddlingis assumedbetween 1 mm and 2 ma/dayfor most of the soils in Java. Based on these parametersand using standardcrop coefficients,maximum water dutiesfor canal designrange between1.4 1/sec to 1.7 1/sec per hectare. Water supplycalculations are based on synthesizedflows for biggersystems usirg availablestreamflow data on streamswith similarcatchment characteristics :n each province. Because of limited actual flow data and rainfall records for smaLl-scale schemes,the estimatedflows were checkedagainst standard flow estimatesfor each sub- regionprepared by the DGWRD Instituteof Hydrology. Regionalflow estimates of catchmentyields are usuallybetween 25 to 30 1/sec per sq km for the wet seasonand 8 to 10 1/sec per sq km for the dry season. During the evaluation of projectinvestment priorities, consultants assessed the firm water supplies to arriveat the proposedcropping intensity for each system. The mission reviewedthis assessmentand found it reasonableand adequate.

3.17 Dumpil Subproject. Estimatedwater requirementsare based on effectiverainfall with 80Z probability,evapotranspiration estimated using the Penmanmethod (4.6 mm/day) and a deep percolationrate of 1.5 mm/day. Based on these parametersand using standardcrop coefficientsdeveloped by DGURD,mean annualwater requirementswould be about 1,540 mm over a 30-year periodof study. The main canAlshave been designedfor water duty of 1.65 I/sec/ha. The rainfall-runoffrelationship for the SerangRiver basin was used to synthesizethe streamfLowof the Lusi River at the proposeddiversion site. The size of the projectarea was determinedfrom simulatedoperation studiesusing the 30-yearperiod of synthesizedstreamflows at the diversion site and estimated seasonal water requirements based on a cropping pattern with the entirearea under two rice crops duringthe wet season and 801 of the area under secondarycrops duringthe dry season. The proposedcropping calendarfollows an existingcalendar except for a short shift to mA imize the use of rainfallfor both tne wet and dry seasoncrops. - 19 -

Statusof ProjectPreparation

3.18 ProvincialDevelopment Component. The project preparationreport was preparedby the DOI-I with the assistanceof consultantsSir. M. MacDonald and Partners(U.K.). The preparationreport is based on informationsupplied by the two ProvincialIrrigation Services and detaileddesigns performed by their designunits. Designsfor rehabilitationworks on about 5,400 ha in both Centraland West Java are ready for implementationduring the first project year. Detaileddesigns are more advancedin the case of small-and medium-scalesystems, some of which were preparedunder previousBank-assisted projects. Designsfor about 60% of the small-scalesystems (35,000ha) are completedand can be put to tenderwithout any revisions. However,although designshave been preparedfor about 75% of the medium-scalesystems (19,000 ha), the designsfor a large part of CentralJava (12,000ha) would require carefulreview and some revision. Land has been acquiredfor works to be implementedin FY86/87and for the remainingworks the land acquisitionwill be completeda year earlierthan the scheduledconstruction time. No diffi- cultiesare foreseenin acquiringthe requiredrights-of-way.

3.19 DumpilComponent. A feasibilityreport for the subprojectwas preparedby the DOI-IIwith the assistanceof consultantsPRC/ECI (U.S.) in September1984. Detaileddesigns of all civilworks for the diversiondam, main and secondarycanals, with tenderdocuments, were completedin January 1985. Tenderdocuments for the diversiondam have been preparedon the basis of InternationalCompetitive Bidding (ICB) procedures. Tendersfor main and secondarycanal constructionwhich were orginallyprepared for Local Competi- tive Bidding(LCB) procedureswere modifiedby the Jratunselunaproject office for ICB tendering. Land acquisitionfor the diversiondam contractwill be completedbefore February 1986 and for other works will be completeda year earlierthan the scheduledconstruction time.

Cost Estimates

3.20 Total projectcosts are estimatedat US$302.3million (including taxes of about US$24.2million and reserveprocurement for vehiclesof about US$1.4million) of which US$113.8million (or 37.6%)would be foreign exchange. Projectcosts are expressedin December1985 pricesand an exchange rate of Rp 1,100 per US$ is used in this report. Unit pricesfor civil works are based on recentlycontracted costs of similarprojects carried out by DOI- I, DOI-IIand the ProvincialIrrigation Services in both provinces. Quantities for the provincial irrigation development (rehabilitation,small- and medium-scalesystems) were derivedfrom detaileddesigns and then projectedfor the total area for both provinces. Dumpil componentquantities are based on tenderdrawings and detaileddesigns for the diversiondam, main and secondarysystems. Costs of offices,houses and equipmentare based on current GOI contracts. A 15% allowance for physical contingencies has been includedfor the rehabilitationand upgradingworks; 101 for small-and medium-scaleworks, trainingand IPEDA mappingand survey activities;and 5% for Dumpilcivil works and consultantservices. Expectedprice increases total about 23Z of the base costs plus physicalcontingencies and were estimated on the basis of the followinginflation rates: for local costs 6% in 1986-90and 4.5% thereafter;and for foreigncosts 7% in 1986 and 1987, 7.5Z - 20 -

Table 3.2: PROJECT COST SUMMAR7

Z of Z of RD bllion US& ulmllon foreign total Item Local Forelgn Total Local Foreign Total exchangp baa cost

Provincial Irrigatloan Irrigatlon Dvelo_mnt Land acqlsitlon 13.05 - 13.05 11.86 - 11.86 - Ikpplng and site investigations 0.60 0.26 0.86 0.55 0.24 0.79 30.0 Detalled design 4.05 1.73 5.78 3.68 1.57 5.25 30.0 Civil works 93.50 57.01 150.51 85.00 51.83 136.83 37.9

Subtotal 111.20 59.00 174.20 101.09 53.64 1S4.73 34.7 68.0

InmtitutLonal Development Tralinig and coordination consultancy 3.36 4.86 8.22 3.06 4.42 7.48 59.1 Training - per diem, etc. 0.46 0.20 0.66 0.42 0.18 0.60 30.0 NEe and Water User Ausociations 0.35 0.15 0.50 0.32 0.14 0.46 30.0 Offices and jurn housing 2.48 1.29 3.77 2.25 1.17 3.42 34.2 Vehicles and equipment 0.59 1.37 1.96 0.54 1.24 1.78 70.0

Subtotal 7.24 7.87 15.11 6.59 7.15 13.74 52.10 6.0

IFEDA (Land Tax) Mapping, reclassifleation and surveye 2.36 3.53 5.89 2.14 3.21 5.35 60.0 Equlpment and institutionalstrengtbening 0.24 0.24 0.48 0.21 0.22 0.43 50.0 Technical assistance - consultants 0.36 0.56 0.92 0.33 0.51 0.84 60.7

Subtotal 2.96 4.33 7.29 2.66 3.94 6.62 59.5 2.9

Subtotal (Provincial Irrigation) 121.40 71.20 192.60 110.36 64.73 175.09 37.0

Dumpil Subproject and Studies /a Civll Works Land acquisition 4.98 - 4.98 4.53 - 4.53 - Design - drainage and tertiaries 0.29 0.13 0.42 0.26 0.12 0.38 30.0 Diversion dm 7.95 6.27 14.22 7.23 5.70 12.93 44.1 Main and secondary canal. 7.51 8.56 16.07 6.83 7.78 14.61 53.3 Dralnage and tertiary development 2.09 1.39 3.48 1.90 1.26 3.16 40.0 Offices and buildings 0.15 0.07 0.22 0.14 0.06 0.20 30.0

Subtotal 22.97 16.42 39.39 20.89 14.92 35.81 41.7 15.7

Consulting Services Construction supervision (Dumpil) /a 0.79 1.04 1.83 0.72 0.95 1.67 56.8 Bongo area - feasibllity studies and detailed design 1.15 1.08 2.23 1.05 0.98 2.03 48.4 Dolok-Penggaron drainage and Tuntang- Jragung area 1.56 1.95 3.51 1.42 1.78 3.20 55.6

Subtotal 3.50 4.07 7.57 3.19 3.71 6.90 53.8 3.0

Subtotal (Wid-Lusi and Studies) 26.47 20.49 46.96 24.08 18.63 42.71 43.6

Administrativeand overbeads 11.02 - 11.02 10.01 - 10.01 - 4.4

Base Cost 158.89 91.69 250.58 144.45 83.36 227.81 36.6 100.0

Physical contingencles 14.83 8.87 23.70 13.48 8.07 21.55 37.4 9.5 Price contingencies 33.60 24.62 58.22 30.56 22.38 52.94 42.3 23.3

Total 207.32 125.18 332.50 188.49 113.81 302.30 37.6 132.8 of which taxes 26.62 - 26.62 24.20 - 24.20 - 10.6

/a During negotiations the GOI delegation requested that the Idid-Lusi subproject be renamd the Duapil subproject. - 21 - in 1988, 7.7Z in 1989, 7.6Z in 1990, and 4.5Z thereafter. Detailedproject costs are given in Annex 1, Tables 1 and 2 and are summarizedin Table 3.2.

Financing

3.21 The proposedBank loan of US$166.0million would financeabout 60Z of total projectcosts excludingtaxes (US$24.2million) and reserveprocurement of vehicles(US$1.4 million). The EEC is expectedto provideparallel financingin the form of a grant of about US$18 millionfor constructionof the Dumpildiversion dam and consultingservices for the designof drainage works for the Dolok-Penggaronarea, and feasibilitystudies and detailed designof irrigationdevelopment for the Tuntang-Jragungarea. Effectiveness of the EEC grant,award of the contractfor constructionof the Dumpil diversion dam and signingof the consultant'scontract for Dumpilconstruction supervisionwould be conditionsof disbursementof the Bank loan for the Dumpilcomponent. Externalassistance of US$184.0million (Bank loan and EEC grant)would cover the foreignexchange cost (US$113.8million) and 41% of local costs (US$70.2million) or 66Z of total projectcost excludingtaxes. OI would financethe balanceof US$118.3million (includingUS$24.2 million for taxes)through its budgetaryallocations. The financingplan is shown in Table 3.3. Table 3.3: FINANCINGPLAN

Local Foreign Total Source - US$ million -

Bank loan /a 62.8 103.2 166.0 65.0 EEC grant 7.4 10.6 18.0 6.0 001 118.3 - 118.3 39.0 _

Total 188.5 113.8 302.3 100.0

/a Excludesreserve procurement of vehicles(US$1.4 million) and taxes (US$24.2million)

ProjectImplementation

3.22 Accordingto 001 procedures,Team Ten of the CabinetSecretariat (SEKIEG)is to approveterms of reference,the consultants'short list, the decisionon the lead firm (eitherinternationally recruited or local),total consultantman-months, the ratio betweenlocal and foreigninput, prequalifi- cationand tenderdocuments, the list of prequalifiedcontractors, and an evaluationof the finalaward of contractsfor works, equipmentand services. To avoid delaysrecently experienced in the clearanceand award of contracts relatedto a few ongoingprojects, the followingdocuments were clearedby all GOI organizationsincluding SEKNEGprior to negotiations: - 22 -

(a) prequalificationdocuments for constructionof the Dumpil diversion dam (ICB contractto be financedby EEC); and (b) terms of referencefor the trainingand coordinationconsultancy servicesrelated to the provincialdeveTnpment component, services for supervision of construction of the Dumpil subproject and servicesfor the feasibilitystudy and detaileddesigns of the Bongo area irrigationscheme. Clearancealso includedtotal consultant input and divisionof responsibilitybetween local and inter- nationally-recruitedconsultants.

Signingof the two consultants'contracts for projecttraining and coordinationfor West and CentralJava Provinceswould be a conditionof loan effectiveness.

3.23 The projectwould be implementedover a six-yearperiod starting with the constructionof civil works for the provincialirrigation schemes in September1986. Constructionof the Dumpil diversiondam would begin in October1986. GOI is prequalifingcontractors for the constructionof the diversiondam, and clearanceof the list of prequalifiedcontractors by variousw0I agenciesand EEC is expectedby November30, 1985. Assurances were obtainedat negotiationsthat GOI would t ndertakeconstruction of all projectworks in accordancewith an implementationschedule agreed with the Bank. All projectworks are expectedto be completedby end-1991. The implementationschedule is shown in Annex 1, Table 7 and key indicatorsare given in Annex 2, Table 15.

Procurement

3.24 Civil Works. ICB procedureswould be used for the constructionof the Bapangand Randuguntingmedium-scale schemes in CentralJava Province (US$10million), the Cimandari(medium-scale) and Cikuntan(rehabilitation) schemesin West Java Province(US$12 million); and the diversiondam (US$14.7 million)and the mair and secondarycanals (US$16.3million) in the Dumpil area. The EEC is expectedto financeconstruction of the dam, for which GOI would followEEC guidelines. Bank guidelineswould be used for the other contracts. The remainingprovincial irrigation works, offices and buildings,and tertiary development and drainage works in the Dumpil area would be packaged into a seriesof about 340 smallercontracts, including about 20 multi-year contractseach exceedingUS$1.5 million in value and 320 single-yearcontracts most of which would be less than US$500,000in value (US$138million). Furtherpackaging of the 20 multi-yearcivil works contractsinto larger contractsand combiningthe IPEDAmapping activities into one contractfor tenderingunder ICB procedureswas consideredbut was not found feasible. These contractsare plannedfor 15 medium-scalesystems, about 18 rehabilitationschemes with areas largerthan 700 ha, and about 10 small-scale systemswith areas largerthan 600 ha. The systemsare locatedin 11 wilayahs in both provinces,with each wilayahadministratively responsible for the works carriedout within its boundaries. Packagingof contractssprpad over two or three wilayahswould requiresupervision of works by provincial headquartersstaff, necessitating special organizational arrangements which would be difficultto introduce. Similarly,mapping work for IPEDA is spread - 23 -

Table 3.4: PROCURUIINTARRAJGMZU / (Us million)

ICU LCl Other I/A Total

Civil Uorks ii;ima Irrftion Ce itracts *abotW1.5 illion ediume-scale sehms 15.0 45.5 - - 60.5 (11.3) (34.1) (45.4) Rehabilitation (large sytems) 7.0 5.6 - - 12.6 (5.2) (4.2) - - (9.4) Contracta U580O.2-1.5 million Mediam-scale scheme and rehabilitation - 65.0 - - 65.0 (46.9) (46.0) Contracts below US$0.2 million - 17.4 - - 17.4 (13.9) (11.9)

Dumpil SubproJect Divereion dam contract (SEC financing) 14.7 - - - 14.7 t-) C-) Main and secondary canals 16.3 - - 16.3 (12.2) (12.2) Drainage. tertiaries and offices - 4.0 - - 4.0 (3.0) (3.0)

Subtotal 53.0 137.5 - - 190.5 ciE7 (104.1) (l32.A)

Consultants and Training Provincial Irrigtion Traintng and coordination conaultancy, monitoring & evaluation, water users oaso- cietions and misc. training - - 10.0 - 10.0 (10.0) (10.0) Detailed designs - 6.2 - 6.2 (A.2) (6.2) WM technecal assistance and misc. traininR - - 0.9 - 0.9 (n.q) (0.9) Dumpil Subproject Construction supervision and terttary system design - - 2.4 - 2.4 (2.4) (2.4)

Bongo area studies and deta-tled design - - 2.1 - 2.1 (2.1) (2.1)

Dolok-Penaron drainage desgn and Tuntant-Jragung area studies and desigD (MC flancinLg) - 3.6 - 3.6 (-) (-)

Subtotal - - 25.2 - 25.2 (21.4) (2 .6)

Vehicles and equipment - °.7 - 1.4 2.1

rPFMA (0.4) (-) (0.4)

Mapping and properties identification - 4.0 - - 4.0 (3.6) (3.f) aeelassificatlen and reasesment - - 2.0 2.0 (-) C-)( Administration end land aequlsitlon - - - 32.7 32.7 (-) C() C-) Physical contingencies (unallocated) - - 21.6 - 21.6 (7.6) (7.6)

Total (Excluding Taxes) 51.0 142.2 48.8 34.1 27R.1 (28.7) (1-06.) (29.2) = (16.0)

Taxes - - - 24.2 24.2 C-) (-) Total (Including Taxes) 302.3

Is Numbers In parentheses Indicate loan disbursements. Other figures are base costs plus expected price tnereases. - 24 - over eight fragmentedareas in two provincesand GOI securityclearance for the aerialphotography, if undertakenby a foreignfirm engagedthrough ICB, would take longerthan for a local firm(s). In view of this, it would be easierand more efficientto carry out the mappingactivities under several contractsthan to combineall such activitiesunder one contract. Experience in the irrigationsubsector also shows that contractsbelow US$3-4million do not attractinternational bidders. Since mzst of the remainingworks are widelydispersed and would be tenderedover a six-yearperiod, they are unlikelyto attractinternational contractors. LCB proceduresacceptable to the Bank would thereforebe used, with foreigncontractors eligible to participate. 3.25 Equipmentand Consultants. Small office,survey and minor O&M equipment(US$0.7 million) would be procuredlocally in small lots throughGOI procurementprocedures acceptable to the Bank. Due to their small size, ICB would not be suitablefor these contracts. Consultantswould be engaged in accordancewith Bank guidelines.

Reviewof Procurement 3.26 The Bank would review,prior to tenderingand award, the sir ICB contractsfor three mediumscale and two systemsto be rehabilitated(US$22.0 million),the three ICB contractsfor the main and secondarycanals in the Dumpilarea (US$16.3million) and 20 multi-yearLCB contractseach exceeding US$1.5million in value (US$51.1million), thus coveringabout 51% of the total contractvalue of about US$176 million. EEC would review in accordance with its own guidelinesthe diversiondam constructioncontract (US$14.7 million). Other civil works contracts(US$86.4 million), each valuedat less than US$1.5million and equipmentprocured in small lots not exceedingUS$0.1 millionin value,would be revie..edby the GOI ProcurementControl Units, and subsequentLyby the Bank, on a samplebasis after award. Table 3.4 summarizes procurementarrangements. All contractsrelated to IPEDA mappingand property ownershipidentification activities exceeding US$100,000 would be subjectto the Bank'sreview prior to tenderingand award.

Disbursements

3.27 Loan funds would be disbursedagainst the followingcategories at the rates shown below net of taxes. Category Disbursementrate

Civil Works Officesand housing 100% Other civil works 75% Importedequipment and materials 100% Locallymanufactured goods 95% of ex-factorycosts Importedequipment and materials procuredlocally 65% IPEDAmapping and ownership identificationsurveys- 90% Local and internationallyrecruited consultantservices and trainingcosts 100% - 25 -

Disbursementswould be made againstcontracts, except for the cost of training, designscarried out by Indonesianconsultants, IPEDA mappingand ownershipidentification survey contracts below US$200,000,IPEDA equipment and training,miscellaneous equipment, monitoring and evaluation,and civil works contractsbelow US$1.5million which would be disbursedagainst statementsof expenditure(Annex 5). The proposedallocation of loan proceeds is presentedin Annex 1, Table 3. The disbursementprofile (Annex 1, Table 4) is projectedover a six and a half year period from July 1986 to December 1992. The profilefollows fairly closely the disbursementprofile for previousIndonesian irrigation projects during the initialthree years, a periodof intenseon-the-job training, completion of remainingdesign work and tenderdocuments for multi-yearcontracts. With these activitieseither completedor fully under way at the end of the third year, projectactivities are expectedto be slightly(about 4-1OZ) ahead of the currenttrend in the disbursementprofile. Loan closingis expectedby December31, 1992.

Accountsand Audits

3.28 Separatedetailed accounts and recordsare kept by DGWRD, the IPEDA Directorateand each ProvincialIrrigation Service for each budget item by projectand budgetyear. Carry-oversof unspentfunds (SIAP)are permitted for two years. BecauseSIAPs are permitted,cash books and accountsare not closeduntil the budget for the line item has been fully spent. Project accountsare subjectto two audits: (a) by the InspectorGeneral of the concernedministries; and (b) by the Financialand DevelopmentSupervisory Board (BPKP). The work of both auditorshas been found to be generallysatis- factoryon Bank-assistedirrigation projects. Assuranceswere obtainedat negotiationsthat adequateand separateaccounts would be maintainedfor the project;all project-relatedcontracts, documents related to statementsof expenditure,and orders and receiptswould be kept for at least one year after the Bank has receivedthe audit reportfor the fiscalyear in which the last withdrawalfrom the Loan Accountwas made; and independentaudits by BPKP of each year'saccount would be submittedto the Bank withinnine months of the close of each GOI fiscal year.

EnvironmentalImpact

3.29 Irrigatedsawah is ecologicallythe most stableand non-erosiveform of land use in Indonesiaand the projectwould have a very positiveenviron- mentalimpact. Public healthauthorities, with the cooperationof each ProvincialIrrigation Service, would intensifymalaria control efforts as the irrigation and cropping pattern intensity increases. This would be emphasized in the Dumpilsubproject area and the medium-scaleand largerrehabilitation schemes,where some of the vectorsare presentand there is alreadysome incidence of malaria. Assuranceswere obtainedat negotiationsthat appropriate measuresfor malariacontrol would be taken in the projectarea. These measures would take environmental aspects into consideration. The construction of the Kedung Ombo Dam (Ln. 2543-IND) would substantially reduce flooding in the upper Serang River and at the junction of the Serang and Lusi Rivers. The provision of drainage under the Dumpil component for the lower areas would also have a further beneficial effect. The Serang and Lusi watersheds would - 26 - be covered under the Upland Agriculture and Conservation Project (Ln. 2474- IND) supported by USAID and the Bank. The implementation of the project would not involve an increase in the use of agrochemicals, and the Covernment has taken steps to allow only soft or degradable pesticides into the country.

IV. ORGANIZATION AND MANAGEMENT

National Level Organization and Management

4.01 DGCRD, through the DOI-I and WDI-II, will be responsible for overall project coordination. DOI-I would provide technical guidance and administrative support to both Provincial Irrigation Services and serve as the central funding channel for loan and government funds. This is in keeping with established patterns of operations and GOI's requirement that a central government entity should adm-.nisterexternal assistance. The Subdirectorateof Rehabili- tation within DOI-I would coordinate day-to-day activities, obtain necessary GOI approvals and prepare withdrawal applications for forwarding to the Bank Resident Staff in Indonesia (BSI). This Subdirectorate is currently responsible for the East Java Provincial Project (Ln. 2119-IND) and would use the same set-up through deployment of additional staff to carry out the project activities.

4.02 DOI-II would be responsible for the Dumpil component and the studies as well as detailed designs included under the project. DOI-II has had extensive experience in administering previous as well as about seven ongoing Bank- assisted projects. No additional staff would be required at the national level for this component.

4.03 The Directorate General of Taxation, through its Directorate of Land Tax, within the Ministry of Finance would be responsible for the mapping, reclassification,and reassessment activities related to IPEDA. Current IPEDA staff are handling similar activities for the ongoing Kedung Ombo and West Tlarum Projects. A project office has been established and a Project Manager has been appointed who reports directly to the Director of IPEDA and would manage day-to-day operations of the proposed project and those of the other two ongoing Bank-assisted projects. The project office would be responsible for processing of mapping and survey contracts, reclassificationof lands by IPEDA staff, IPEDA reassessment and preparation of project-relatedstudies, reports and withdrawal applications. At the national level, a coordination comittee would be established to coordinate mapping and reclassification activities with other agencies such as DGWRD and the Directorate General of Food Crops Agriculture (DGFCA). The committee wouLd be chaired by the Director of IPEDA with members representingDOI-I, DOI-II of DCWRD,and DGFCA. Assurances were obtained at negotiations that GOI would establish the coordinating committee before September 30, 1986.

Field Level Organization and Management

4.04 Provincial Irrigation. This component would be implemented by the Central and West Java Provincial Irrigation Services. The heads of these - 27 - services would direct the day-to-day field activities as Project Managers, with the assistance of Deputy Project Managers acting as effective full-time heads in each province. The project activities would be fully integrated into the provincial organization. The organizational structure at the provincial, Wilayah and field levels was described earlier (paras. 2.13 to 2.16) and is shown in Chart No. 27536. In Central Java, field sections of three of the six Wilayahs control the work of all three services, namely Irrigation, Roads, and Housing and Urban Development. The Governor of Central Java has issued a decree stating that seventeen public works sections of the Pati, Kedu and Surakarta Wilayahs would be organized into separate irrigation sections on January 1, 1986. Assurances were obtained at negotiations that by September 30, 1986, GOI would assign qualified staff and provide adequate budgets to the reorganized sections in the Wilayahs of Kedu, Surakarta and Pati in Central Java. Additional staffing needs of the project would be filled by provincial irrigation staff returning from secondment to DOI-II under the completed Pemali Comal and Cambarsari-PesanggrahanProjects in Central Java and the Cirebon, Cisedani and Ciujung Projects in West Java. In addition, 20 engineers would be recruited or promoted over the next four years. Technical staff shortfalls could easily be made up through recruitment and promotion of staff returning from various universities. Assurances were obtained at negotiations that the necessary staff build-up would take place according to the number and timing shown in Annes 2, Table 5.

Water Users Associations

4.05 The GOI has recognized the importance of efficient water management at the farm level and in 1975 decreed the establishmentof Water Users Associ- ations (WUAs) at the village level. The situation has been further clarified by Presidential Instruction No. 2 which sets down the organization structure of the WUAs. WUA management consists of a Chairman, Deputy Chairman, Secre- tary, Technical Officer and Treasurer. Committee members are elected by the WUAmembers, who own or rent irrigated sawah within the tertiary unit. A typical association would have an area of about 70 to 100 ha, and a membership of 100 to 200 farmers. The members are divided into farm groups by sub- tertiary and quaternary blocks. Most of the WUAs were established at the village level and are now being reorganized based on tertiary blocks. Generally, in areas where water is limited, WUAs are active, but where water is sufficient, especially in upstream areas, they are passive. In areas where water availability is very poor, WUAs are passive and ineffective. The WUAs in West Java were evaluated by the West Java Irrigation Service in 1984, and out of a total of 7,570 WUAs covering a total of some 554,000 ha, only 1,300 (17Z) were active; whereas a similar evaluation in Central Java during 1984 showed that out of a total of 1,680 WUAs, about 700 (41Z) were active. This indicates the magnitude of the task of motivating and counselling the WUAs.

4.06 The project would provide an opportunity for initially establishing effective WUAs in 55,000 ha of irrigation schemes to be upgraded as pilot training areas under the project. Responsibility for organizing and counselling the WUAs would be assigned to a Provincial CoordinatingCommittee chaired by the Assistant Secretary to the Provincial Government for Production, with conmittee members nominated by the Provincial Services for both Irrigation and Agriculture. The provincial committee would review the needs and define the - 28 -

training program for the WUAs and clear training material for distribution to the various irrigation committees at the Kabupaten level. Each service would be directly responsible for the training of the WUAs in their area of technical expertise. The Provincial Irrigation Services would manage training related to the operation and maintenance of the tertiary network and water management, while the Provincial Agricultural Services would focus on crop production and the effective use of the water at the farm level. Training activities at the Kabupaten level would be carried out jointly by both Provin- cial Irrigation and Agricultural Services under the general guidance of the irrigation committee. Expenditures of the Provincial Irrigation Service would be covered by the project, and training expenses incurred by the Provincial AgriculturalServices would be covered through the proposed National Agricul- tural Extension III Project. Performance of the WUAs in the pilot areas would be evaluated during the mid-term project review and, in light of the experience gained, WUAs would be extended to the remaining project areas of both provinces.

Dumpil Subproject

4.07 Field activities of the Dumpil area would be under the responsibility of the Jratunseluna Project (see Chart 27536). The Division responsible for the Upper Serang irrigation area would carry out implementationthrough a Dumpil Subproject Section and three units: one for diversion dam construction and two for construction of the left and right bank irrigation works. The subproJect organization is in place and adequate staff are available for constructionsupervision in the field.

IPEDA

4.08 The provincial and district level offices of IPEDA would assist the national project office in carrying out field activities. A subproject office consisting of a supervisor and three to four assistants would be established in each province. A Provincial Coordinating Committee would be established to coordinate field activities and exchange data and information related to mapping, ownership and crop yields. The Provincial Committee would be chaired by the Head of the Provincial Tax Office and its membership would be composed of representativesfrom the Provincial Planning Office (BAPPEDA), the Provincial Irrigation Services, Agriculture Service, Agraria and other agencies such as the Jatiluhur Authority and DOI-II.

Monitoring and Evaluation

4.09 The monitoring and evaluation (M&E) system for the project would be based on existing data collection procedures of both Provincial Irrigation Services. It is designed to improve operations and water management standards through regular feedback on results obtained from decisions and actions. The system would focus on the impact upon project beneficiaries through such indicatorsas cropping intensity, crop yields and net farm income. These indicatorswould be analyzed with respect to water supply conditions, farm sizes, crop varieties, input utilization, farm labor supply and other factors such as technical status of the farm operators. For management information purposes, the analysis would be restricted to assessing the differences in - 29 - croppingresults under differentconditions before and after the irrigation systemsare rehabilitatedor improved. Each subsectionwould collectinfor- mationfrom selectedfarmers and would involvevillage level extensionworkers (PPLs)in the collectionof crop data. The informationwould be submittedto the relevantsection for initialprocessing and verification.An M&E unit would be establishedin each province(Chart 27536), headed by an agricultur- ist with some statisticaland computerbackground. He would be assistedby two staff members: one responsiblefor data processingand analysisand the secondfor the supervisionof data collectionand trainingof field staff at the sectionand subsectionlevel. The informationcollected at the field level would be analyzedand evaluatedby the M&E Unit. The analysiswould then be submittedfor reviewto the ProvincialCoordinating Committee (para. 4.06). The Committeewould finalizerecommenda:ions and pass these on to the concernedagencies for furtheraction and improvement.Assurances were obtainedat negotiationsthat: (a) M&Eunits would be establishedand staffed in each provincebefore December 31, 1986; (b) a detailedplan of action for M&E activitieswould be submittedfor the Bank'sreview before March 31, 19871 and (c) the M&E units would start implementingthe agreed programby September 30, 1987.

4.10 As an input to the mid-termreview process, the consultantsfor trainingand coordinationwould preparereports assessing the variousproduc- tion constraintson irrigatedagriculture as well as the performanceof Water Users Associations,using the M&E data in conjunctionwith additionalfield work. At projectcompletion, the consultantswould prepareanother report assessingproject impact on variousgroups of projectbeneficiaries using the seriesdata on croppingintensities, crop yieldsand net returns. Provision has been made for the consultantsinput (para.3.08) for these reports.

V. AGRICULTURALSUPPORT SERVICES AND PRODUCTION

Support Services 5.01 Research. Most crop researchis performedby the CentralResearch Station(CENTREDIF) at Bogor and at the substationsand demonstrationplots locatedin Centraland West Java. The CENTREDIFdevelops new varietiesand technologieswhich can be used by farmersunder local conditions. The information is disseminatedthrough the AgriculturalExtension Service. Research is being strengthenedby the ongoingBank-assisted National Agricultural ResearchProject II (Ln. 1840/Cr.1014-IND).

5.02 Extension. The agriculturalextension service is based on the trainingand visit systemunder which field extensionworkers (PPLs)are responsiblefor deliveringthe technologicalpackage at the farm level through contactfarmers. There are about 2,300 and 2,400 PPLs in Centraland West Java respectively.The PPLs are supervisedat the districtlevel by middle level workers(PPMs), who in turn are supervisedand trainedby subjectmatter specialists(PPSs) at the provinciallevel. The extensionservice has been successfulin its rice intensificationprogram, but has encounteredsome difficultyin convincingfarmers to use the recommendedinputs for palawija - 30 - crops due to the unavailability of a complete technical package and credit, which are available for rice, and unfavorable prices at harvest time. OI and the Bank have emphasized the strengthening of agricultural extension activities through the completed Agricultural Extension Project (Ln. 1267-IND) and the ongoing National Agricultural Extension II Project (Cr. 996-IND). The proposed Agricultural Extension III Project would put greater emphasis on the improvementand production of palavija crops. Seed production aspects have been supported through the completed Seeds I Project (Cr. 246-IND) and ongoing Seeds II Project (Ln. 1267-IND).

5.03 Credit. The Bank Rakyat Indonesia (BRI) is the main Government source of credit for irrigated rice production through the BIMAS program. The credit is extended in the form of fertilizers, agrochemicals,high yielding variety (HYV) seeds, cost of living allowances and extension advice for crop production. The INMAS program also provides farmers with subsidized inputs and extension advice, but the farmers are expected to pay cash. For irrigated rice production, farmers can obtain credit for up to Rp 75,000/ha (US$68/ha) for seven months at an interest rate of 1Z per month. In Central and West Java the BIMAS/INMAS programs cover about 90% of the irrigated rice crop. However, credit for palawija crops is not developed to the level of the BINLS/INMAS programs and farmers mostly rely on private sources.

Present and Future Cropping Patterns

5.04 Central and West Java Subprojects. Annex 3, Table 1 presents the average net area harvested, production and yields for major crops in Central and West Java for the year 1981-82. Total crop areas, crop intensities, and yields for the present, future without project, and the future with project situation have been estimated for small- and medium-scale irrigation schemes (Annex 3, Tables 2 and 3) and for irrigation systems to be rehabilitated (Annex 3, Table 4). Future cropping patterns without the project will not change from the present cropping intensities of 190% in Central Java and 140% in West Java for the new irrigation systems, while the cropping intensity would decrease from 150X to 140% for systems needing rehabilitation.

5.05 The cropping intensity in the future with project case would increase to 200% and 255Z for the small- and medium-scale schemrasin Central Java, while in West Java the cropping intensity would be 180% for the small and 200% for the medium-scale schemes. For rehabilitated irrigation systems, the cropping intensity would increase to 170% in both Cent:al and West Java. The increased cropping intensities would be possible due to a slight shift of the cropping calendar resulting in better use of the available irrigation water for growing crops, mainly rice during the dry season.

5.06 Dupil Subproject. Present cropping intensities in the area are high, averaging about 212X, of which about 10% is irrigated wet season rice; the rest is wet season rainfed rice and dry season rainfed palavija crops. The cropping intensity would increase with the project from 212% to 275% while the area under irrigation would increase from 10% to 177%. The area under irrigated rice would increase from 1,170 ha to about 11,785 ha, while about 8,250 ha of rainfed palawija crops would also be brought under irrigation (Annex 3, Table 5). - 31 -

Yieldsand Production

5.07 The presentaverage yields of irrigatedHYV rice in Centraland West Java are 4.0 t/ha for the wet seasonand 3.6 t/ha for the dry season (dry unhuskedrice); while the averageyield for the Dumpil subprojectarea is 3.2 t/ha for irrigatedand 2.8 t/ha for rainfedrice. The projectwould increasethe yields of irrigatedHYV rice in Centraland West Java to 5.0 t/ha in the wet seasonand 4.8 t/ha in the dry season The yields of palawija crops under irrigatedconditions would doublewith the projectat full development: groundnutfrom 0.6 to 1.2 c/ha,maize 1.2 to 2.5 t/ha and soybean0.5 to 1.2 t/ha. Such yield improvementsare consideredmodest as they have alreadybeen attainedin Indonesiaunder other ongoing irrigationprojects. Yield improvementsfor rice and palawijacrops occur becauseof the inter- action of severalfactors such as betterextension, improved seeds, and greaterwater availability,the latterbeing criticalbecause it reducesthe risk of crop failuresand inducesthe farmer to apply more and better inputs. Activitiesunder the ongoingAgricuLtural Extension II and Seeds II Projects (Cr. 996 and Ln. 2066-IND)within the projectarea would providethe necessary linkages. 5.08 The estimatedannual incrementalproduction generated by the project at full developmentwould be about 347,000tons of paddy,about 11,000 tons of maize,15,000 tons of groundnutsand 4,000 tons of soybeans. Detailsare given in Annex 3, Tables2 to 6.

VI. PRICES,FARM INCOMESAND RECOVERYOF PROJECTCOSTS

Prices

6.01 Economicand financialprices for major agriculturalinputs and outputsare presentedin Annex 3, Tables7 and 8. Estimatedfarm inputsand outputshave been valued in constant1985 pricesfor both the economicand financialanalyses. Economicprices for paddy,maize, groundnut, fertilizers and pesticidesare based on January1985 world market forecastsfor 1986, 1987, 1990 and 1995 of the Bank's CommodityStudies and ProjectionsDivision and have been adjustedfor quality,transportation, processing and handlingto the farmgateprices. Financialprices for all commoditiesand economicprices for inputsnot traded internationallyhave been derivedfrom the farmgate pricesobserved during appraisal. For the medium/longterm (1995-2015),it was assumedthat subsidieson inputsand outputswill be phasedout as Indonesiais reachingself-sufficiency in rice.

Farm Incomes and Payment Capacity

6.02 Farm budgets have been developed for the different types of schemes in both provinces and the Dumpil area. Table 6.1 summarizes the expected incrementalper farm incomeresulting from the projectand the estimatedpay- ment capacityof the farmersin both provincesaccording to landholdingsize. The averagesize of a farm familywas assumedas 4.5 persons,providing 480 man/woman-daysof farm labor per year. A specificfarm labor assumption - 32 -

was used (see Annex 3, Table 10) in which the off-farm Income of surplus farm labor is estimated at 50% of the on-farm daily wage at harvest time and in wt,ich the time dedicated to management of the farm increases in proportion to the size of landholding. Financial prices have 'een used for all inputs and outputs; however, the price received by the fa.-..r for dry paddy (Rp 138/kg) is substantially less than the BULOGofficial "floor price' of Rp 175/kg because it takes into considerationthe impurityand moisturecontent and representsthe estimatedaverage price paid by BULOG in 1984/85. As shown in Table 6.1, incomesof all farms are expectedto rise as a result of the project. Small farms generally rely on off-farm employment for a higher proportion of their income, which would decrease with the project because of higher family labor demand. A minimum yearly living allowance of about Rp 535,000 has been assumed for an average family of 4.5 people, based on an equivalg}tfigure of Rp 119,000in rural Java per capita per year at 1985 prices 1 After subtractingthe minimumliving allowancefrom net income,the farmer'ssurplus would be about Rp 132,000for 0.4 ha farms with small-scale schemes in West Java, increasingto a maximumof Rp 1,245,000for 1.0 ha farms in medium-scale schemes in Central Java. The farmer's surplus is about 45% higher for Central Java because of current higher yields and cropping intensity. In the Dumpil area (detailsin projectfile), the farmer'ssurplus would be about Rp 137,400and Rp 778,000for 0.4 ha and 1.0 ha farms, respectively. The farmer'scapacity to pay additionalIPEDA or other taxes can be estimatedusing as a basis the surplusshown in Table 6.1. Table6.1: FAM4 EIS SM44R (AT1990 FICES) (in '0001985 RThpin)

Prowime CentralJava Province WestJava Provime sma1 6=fP sv!MxmMiun s i e E!ewm ;sna scale svstess Madie BV"II Farmsie (ha) 0.4 LOU 0.4 1. 0. 1 U.4 IOU W6_o '-Wuu 0W W6_W VUO_V W iVOu W W/O W VU0 VW U0 U

Pevmie 548 692 1,3701,730 548 868 1,3702,171 367 622 919 1,555367 715 919 1,787 Epes 43 55 193 257 43 66 193 349 54 81 185 308 54 90 15 358 GrossIxom 505 637 1,1771,473 505 802 1,1771,822 313 541 734 1,247313 625 734 1,429 IYEDktaKx 4 13 16 43 4 14 16 48 4 12 16 39 4 13 16 44 WQA /a 0 2 0 6 0 3 0 7 0 2 0 5 0 2 0 6 On-farm Net Inaze 501 622 1,161 1,424 501 785 1,161 1,767 309 528 718 1,203309 610 718 1,379 Off-farm13n- 147 135 28 17 147 119 28 13 161 139 46 20 161 131 46 15 NwtTRYme 648 757 1,189 1,441 648 904 1,189 1,780 470 667 764 1,223470 741 764 1,394 LivirgUA3bmce 535 535 535 535 535 535 535 535 535 535 535 535 535 535 535 535 PaymentCpacity 113 222 654 906 113 369 654 1,245(65) 132 229 688(65) 206 229 859

/a 2akg of p3ddy/ha paid to UA for its *Dnwem.

4/ Source: "Indonesia,Selected Aspects of SpatialDevelopment," Bank ReportNo. 4776-IND,November 1, 1984. - 33 -

Operationand MaintenanceFunding

6.03 One of the main objectivesof the projectis to increasethe quality of operationand maintenance(O&M) of the irrigationnetwork throughadequate financing,proper staffing and training,and improvedmonitoring and evaluation systems. Responsibilityfor O&M of the networkis dividedbetween two groups: the on-farmsystem of tertiaryand quaternarycanals handled by local Water Users Associations(WUAs) and the main and secondarysystems operated and maintainedby the IrrigationServices of each province. The maintenance of tertiarysystems has traditionallybeen and will remain the responsibility of the farmersthrough the WUAs (see para. 4.05). Under this arrangement,the farmersare expectedto contributethe following: (a) an in-kindcontribution of 20 kg of paddy per ha per crop paid to the WUA and (b) about 12 man-daysof labor per ha per year for the maintenanceof the tertiaryand quaternary canals. Both labor and the in-kindcontribution, if effectivelycollected, would adequatelycover the O&M needs of the tertiarynetwork. Under the above assumptions,the total contributionwould averagesome Rp 12,300per ha per year in 1985 prices. 6.04 Maintenanceof the main and secondaryirrigation network is currently inadequate, primarily due to a lack of trained staff and inadequate funding. This has shortenedthe economiclife of the systemsand necessitated costly rehabilitationprograms. In part, the financingconstraint stems from the lack of any directirrigation water chargesin Indonesia,except for contributionsto the WUA. The lack of revenueresults in a chronicshortage of ProvincialGovernment funds which has forcedthe CentralGovernment to financethe bulk of O&M althoughthis is a purelyprovincial responsibility and shouldrightly be fundedby the provinces. ThoughGOI has consistently raisedthe Level of O&M fundingfrom Rp 2,900/hain 1974 to about Rp 10,600/ha in 1985, this is still inadequatecompared to averageannual O&M expenses requiredper ha of irrigatedarea estimatedat Rp 18,000 in 1985 prices(see Annex 1, Table 5). GOI is concernedabout the continuedbudgetary input from the CentralGovernment for O&M purposesand fully supportsthe shift through increasedIPEDA revenues. However,the shift has to be gradual,systematic and nationwideand must take into accountthe currenteconomic environment particularlyin the agriculturalsector.

6.05 Land Taxes (IPEDA). IPEDA is collectedat the villagelevel (Desa) and turnedover to the ProvincialGovernments for district(Kabupaten) and other development.The tax has traditionallybeen used for a varietyof purposes, but not for the upkeep of main and secondaryirrigation systems. IPEDA is, however,the most practicableand equitableway of increasingrevenues for irrigationO&M and chargingfarmers for the water used since the tax is based on the price of paddy,land productivityand the size of landholding.GOI has recentlybegun to recognizethe contributionof irrigationdevelopment to the level of IPEDA and has agreed to allocateabout 2X of IPEDA collectionsto the ProvincialIrrigation Services. Since the presentrural net IPEDA collection only reachesRp 5,000/haand Rp 3,000/hain Centraland West Java respectively,the recentallocation of 2% of IPEDA collectionsrepresents under 1Z of total 06M requirements,but could be increasedsubstantially through the followingreforms to IPEDA assessmentand collectionprocedures: - 34 -

(a) the calculationof the tax could be improvedby (i) changingthe base paddy price from Rp 95/kg to Rp 138/kg,which representsthe averageprice paid by BULOG to farmersin 1984/85,(ii) mappingand reassessingthe projectareas in order to reclassifylandholdings accordingto their presentproductivity (the last assessmentof land classeson which the tax calculationis based is about 10 to 15 years old), and (iii) revisingthe tax matrix to createtwo new classesfor production,from 8 to 10 tons per ha and over 10 tons per ha; (b) the collectionrate of the tax variesconsiderably among the provincesand is sometimesvery low. In 1984, the IPEDA collection rate in Centraland West Java was 82% and 40% respectively.An improvementin the collectionprocess and impositionof penaltiesin case of defaultwould increaserevenues significantly; and

(c) some mechanismshould be developedto link irrigationO&M funding with IPEDA and to allocatethose funds directly to the Irrigation Services.

Preliminarycalculations based on the above changesand availabledata show that the scope for increasingIPEDA revenuesin the irrigatedareas is good. In most cases, it is possibleto achieveat least a three-foldincrease over the IPEDA revenuespresently collected. In CentralJava, averagecollection per ha in the irrigatedareas could theoreticallyincrease from Rp 5,500 to Rp 37,000,and in West Java from Rp 10,000 to Rp 33,000 per ha. Such an increasecould only be achievedgradually, because of the time requiredfor mapping,reclassification and reassessment.Moreover, a sudden three-fold increasewould neitherbe practicalnor politicallyacceptable. Annex 4, Table 4 summarizesthe expectedIPEDA collectionincreases resulting from the more limitedchanges to be introducedunder the project.

6.06 Measuresto introduceIPEDA reassessmentsand to increasefunds for irrigationO&M in Centraland West Java have alreadybeen includedin two recentlyapproved Bank-financed irrigation projects in Indonesia,the West Tarum Canal ImprovementProject (Ln. 2560-IND)and the Kedung Ombo Multi- purposeDam and IrrigationProject (Ln. 2543-IND). Under these projectsGOI has agreedto aLlocatea portionof the increenntalIPEDA collectedin the projectareas to the ProvincialIrrigation Services for O&M of the main and secondarysystems. Actionplans are also being preparedunder these projects for the IPEDA reassessment,including a formulato allow the allocationof IPEDA for O&K and a mechanismto channelthese funds to the Provincial IrrigationServices. Under the proposedproject, these measureswould be expandedto cover the remainingirrigated areas in both provinces,and during negotiationsassurances were obtainedfrom GOI that:

(a) the Directorateof IPEDAwill reclassifyirrigated lands and reassessIPEDA rates for the areas listedin Annex 2, Table 14 by September30, 1990 and beginningApril 1, 1990 would carry out similarexercise for the remainingirrigated areas of both Central and West Java provincesaccording to a plan of actionagreed with the Bank; - 35 -

(b) the Central and West Java ProvincialGovernments would allocatea part of the incrementalIPEDA collectedthrough reassessment to the financing of O&K of main and secondary systems in the reassessed areas in accordancewith a plan of action,acceptable to the Bank, to be furnished to the Bank by December 31, 1988 and by December 31, 1989 for the remaining irrigated areas of both provinces; and

(c) the Directorate of IPEDA will furnish to the Bank by September 30, 1987, a plan of action for improving the methodof collectingIPEDA and will carry out such plan in both provincestaking into account the Bank's com_ents.

Cost RecoveryIndexes

6.07 The cost recoveryindex representsthe ratio betweenthe present valuesof the incrementalproject charges and the incremental project costs (includinginvestment and 06W expenses). The projectcharges consist of the incremental IPEDA, the WUA paymentand the farmers'in-kind labor contribution for maintenance of the tertiary network. On the basis of present and estimated futurelevels of per hectareIPEDA contributionsand other charges (see Annex4. Table 4). the cost recoveryindex ranges from 10Z to 38% which com- pares favorablywith similar irrigation projects. The cost recovery index also increasesin step with the landholding size because of the progressivity of the IPEDA tax. For small-scalesystems, the cost recoveryindex ranges between31% and 38Z; for medium-scalesystems it falls in the range 10 to 122 which still comparesfavorably with recent irrigationdevelopment projects in Indonesia. The relatively large difference between the cost recovery indexes of small and medium-scale systems is due to the IPEDA tax structure (Annex 4, Table 3), which currently has a "maximum" paddy production class of 8 t/hal year: since this production plateau is frequently reached in the medium-scale systems, and farmers who produce more do not pay proportionally any additional tax. Using economic prices the cost recovery index will increase from 122 to 45%.

6.08 The rent recovery index represents the ratio between the present value of incrementalproject charges and the projectrent, definedas in Annex 4, Table 2. The project rent is a measure of the additionalnet income to the farmersas a consequenceof the project. The project rent recovery index ranges from 112 to 45% using financial prices and from ax to 21Z using economic prices. The rent recovery index shows the proportion of additional rent which is captured by additional charges. As shown in Table 6.2, the rent recovery index is significantly higher in Central Java where the farmers are presently better off and have a higher capacity to pay. Larger farms contribute to the project charges a greater proportion of the project rent than smaller farms.

6.09 The O&Mrecovery index is the ratio between the present value of incremental project charges and the 0&K expenses (see paras. 6.03-6.04). On average, the incremental charges resulting from the project are sufficient to cover the maintenance costs of both the main system and the tertiary irrigation network. - 36 -

Table 6.2: COST, RENT AND 06K RECOVERY (in '000 1985 Rupiahs)

Incremental values per CentralJava Province West Java Province farm at full Small scale Medium scale RehabilitationSmall scale Medium scale development 0.4 1.0 0.4 1.0 0.4 1.0 0.4 1.0 0.4 1.0

Cross value of production 143.8 359.5 320.2 800.6 169.9 424.8 254.7 636.6 347.3 868.2 Projectrent 43.6 88.1 127.5 265.2 52.8 94.0 88.6 189.9 130.3 281.2 Projectcharges 14.2 40.5 16.5 50.2 10.8 32.7 13.4 40.2 14.8 44.7

DiscountedIncremental Values (10Z) over the ProjectLife (Z)

Direct cost recovery 33 38 10 12 18 21 31 37 10 12 Rent recovery indez 32 45 13 18 21 36 15 21 11 15 O0M recovery index 103 118 120 146 148 179 98 117 106 127

YII. BENEFITS, ECONOMICJUSTIFICATIOI ANDRISKS

Benefits

7.01 The proposed project complements previous Bank support to water resources development in both provinces. The project would increasefood crop production in Central and West Java, reduce or avoid foreignexchange expenditures for rice and food grain imports during years of shortfalls and enhance employment and income in the agricultural sector. Major benefits and beneficiaries are summarizedin Table 7.1. At full development, an incremental quantity of about 347,000 tons of paddy,about 11,000 tons of maize and 15,000 tons of groundnutswould be producedannually. The total populationof the two provinces,estimated at 57.3 million in 1984, is expectedto grow at an averageannual rate of 1.5X until the year 2000. About 530,000rural families would benefitdirectly from the projectand an equivalentof 45,000 full-time farm jobs would be created as a result of crop intensification. The standard of living of the rural families in the project area measured on an income per capitabasis will increaseby an averageof 35Z in CentralJava and 60X in West Java (para. 6.02). It would benefitabout 240,000rural families(45Z of projectpopulation) whose currentincome is below the absolutepoverty line. - 37 -

Table 7.1: SUMMARYOF MAJOR BENEFITSAND BENEFICIARIES

Benefits/Beneficiaries CentralJava/a West Java Total

Production(in tons) Paddy 172,000 175,000 347,000 Maize 11,000 - 11,000 Groundnuts 2,500 12,500 15,000

Numberof Farms in ProjectArea 230,000 300,000 530,000

Employment(million man-days) 5,300 4,400 9,700

/a IncludesDumpil Area.

Main AssumptionsUsed in the EconomicAnalysis

7.02 Financialcosts have been convertedto economiccosts using the conversionfactors given in Table 7.2. Followingare the major adjustments:

(a) taxes- includingthe new Value Added Tax (VAT) of 10% - have been excludedfrom economiccosts;

(b) the expectedprice increasesduring the constructionperiod (23%) have been excludedfrom economiccosts. Physicalcontingencies, however,have been maintainedas a componentof economiccosts;

(d) operationand maintenanceexpenses at the provincialand at the village levelswere not consideredas a projectfinAncial cost but were includedin the projecteconomic costs.

7.03 Labor pricing. Becauseof the considerablepopulation pressure in both provincesand the significantproportion of landlesslaborers, the opportunitycost of unskilledrural labor used in farm productionhas been estimated at 65Z of the prevailingaverage farm wage of about Rp 1,300/day.

7.04 Agriculturalprices. All farm inputsand outputsin the economic analysisas well as in the farm budget are valued in constant1985 prices (see para. 6.01 and Annex 3, Tables 7 and 8).

7.05 Foreignexchange. The exchangerate of US$1.00= Rp 1,100has been used in the appraisaland is consideredto reflectthe value to the economyof the foreignexchange used in the project. - 38 -

Table 7.2: PROJECTCOSTS IN FINANCIALAND ECONOMICTERMS (US$ millionat constant1985 prices)

ProjectFinancial Economic costs costs

IrrigationDevelopment 190.6 149.6 InstitutionalDevelopment 20.6 13.9 IPEDA 6.6 - Administration 10.0 8.8 Base costs 227.8 172.3 Physicalcontingencies 21.6 16.0 Price contingencies 52.9 - Operation& maintenanceexpenses - 56.3

Total 302.3 244.6

Economic Analysis of Typical Schemes

7.06 A separate economic analysis has been undertaken for the Dumpil subproject, and for small- and medium-scale systems and rehabilitation schemes in each province. Table 7.3 summarizes the economicrates of return (ERR) and net presentvalue (Nm) at 102 and 20Z for each project component.

Table 7.3: ECONOMICRATE OF RETURNOF PROJECTCOMPONENTS /a

CentralJava Dumpil West Java Small Medium SubprojectSmall Medium Scale Rehab Scale scale Rehab scale

Economic Rate of 30 27 20 13 33 21 28 Return (X) NPV at 10 (US$/ha) 2,040 1,499 2,645 750 2,653 1,672 2,680 NPV at 202 (US$/ha) 476 331 -8 -935 382 349 74

/a All calculationson a per ha basis.

7.07 Based on the above assumptionsand a projectlife of 30 years the overaLlERR is estimatedat 24Z, which is satisfactory.The detailedcosts and benefitsfor each componentand for the projectas a whole are presented in Annex 4, Table 1. - 39 -

7.08 Given the great numberof systemsto be developedor rehabilitated under the project,the differentcomponents in each provincehave been analyzed on a per ha basis. Estimatesfor developmentcosts per ha, the existing and futureyields, and croppingpattern represent the averageconditions in each province. Experiencegained from the First and SecondProvincial Irriga- tion DevelopmentProjects (Lns. 2119 and 2375-IND)has been incorporatedin the costs and benefitsestimates.

7.09 The Dumpilsubproject, however, has been analyzedseparately and has an ERR of about 13X, which is above the estimatedopportunity cost of capital in Indonesiaof IOZ. The relativelylower ERR of the Dumpil componentis due to the high investmentcost per ha (aroundUS$3,000). About 60,000people live in the projectarea, 73Z of them dependingdirectly on agriculture. Average incomein the Lusi Valley is lower than in the rest of Java because off-farmemployment opportunities are minimal;therefore, the projectwould significantlycontribute to increasethe average familyincome (by over 95X comparedwith 351 in Centraland 601 in West Java) and generatesome 400,000 man-daysof employmentat full development.

7.10 The medium-scalesystems in both Centraland West Java have estimatedERRs of about 20%. The small-scalesystems would achievehigh rates of returnin both provincesdue essentiallyto the low investmentcost per ha and the short constructionperiod. The ERR of such systemsis estimatedat some 30% in CentralJava and 33Z in West Java. The overallERR for Central Java is 25%, lower than the ERR in West Java (28%). This is due to the existencein CentralJava of a more productiveagricultural sector. The impactof the projecton productionis thereforesomewhat lower than in West Java where the scope for improvementis greater. Rehabilitationschemes were also analyzedon a per ha basis and have an ERR of the order of 28Z. The investmentper ha varies from US$500 to US$2,000depending on the system. An investmentof US$1,900/hawould still resultin an ERR of 14x. Futureyields and croppingpatterns would restorethese schemesto their originalproduction potential.

SensitivityAnalysis

7.11 Four key variableshave been identifiedas crucialto the successof the project. Table 7.4 summarizesthe resultsof the sensitivityanalysis with respectto changesin the price of rice, higher investmentcosts, delays in implementation,and durationof the economiclife of the project.

7.12 The projectas a whole is economicallystrong, relatively insensi- tive to cost overruns,and reducedbenefits from both lower productionand rice prices. A 32Z reductionin the projectedrice price during the 1990-2015 periodwould lower the ERR from 241 to 202 and a 201 cost overrunon all projectcomponents would lower the ERR to 21%. The projectis relativelymore sensitiveto delays in implementation:a two year delay in the project benefitswould reduce the ERR to 16%. The projectwould remainmarginally viable even if its economiclife were reducedto eight years in small-scale systemsand nine years in medium scale systems. - 40 -

Table 7.4: SENSITIVITYANALYSIS i-nconstant1985 US)

Appraisal Change New ELR Base case ERR: 24Z unit in variable Z

Price of rice (f.o.b.Bangkok) (Bankprojection) US$/kg - 32Z /a 20Z Investmentcosts US$ X + 20X 21X Delays in implementation years 2 years 16X Economic life of project years - 50X 21Z

/a Such a reduction in Bank projections for 1990 would result in a rice price of about US$2371ton,similar to the 1985 price (f.o.b.Bangkok, 5Z broken).

7.13 For the Dumpil subproject, a 32Z reductionin the projectedrice price during 1990-2015would lower the ERR frou 131 to 101 and a 20Z cost overrunon the investmentwould lower the ERR to 111. A two year delay in the subproject benefitswould reduce the ERR to 91. The Dumpil subprojectwould remainmarginally viable if its economic life were reduced to 17 years. 7.14 Sensitivityto DifferentLevels of O&M. The optimumlevel of 0&M expenditureper hectareis estimatedat Rp 32,000/year,divided between fp 18,000for the main and secondarysystems and Rp 14,000for the tertiary and quaternary laterals. The impact on projectbenefits of lower Levels of 0&Mexpenditures has been analyzed based on the assumption that there is a directcorrelation between the real level of OM expenses and the duration of the economiclife of the project (Table7.5). An expectedeconomic life of 30 years would correspondto 0&M expensesof Rp 32,000/ha/yearand lower O&M expenseswould proportionallylower the economiclife of the project. For mediumrscalesystems, the ERR would drop to under 101 for 001 expensesunder Rp 9,000/ha/year. For small-scale systems, the minimum level of OM ezpenses necessary to reach an ERR of 10Z is Rp 7,500 ha/year, which shows that the projectremains viable under the present00M fundingconditions. Lhe impact of differentlevels of O& expensescan be estimatedby the ratio between the net presentvalue of the output forgonedue to the project'sshorter lifespan and of the savingsresulting from lower 0&Mexpenses. For small-scale systems,this ratio standsbetween 4.3 and 6.0 for a 101 discountrate, and between1.2 and 2.5 for a 201 discountrate. Becausethe opportunitycost of capitalin Indonesiais closer to 101, every rupiah spent by the Government above the presentlevels up to Rp 32,000/ha/yearwould increasethe project benefitsby some 5 rupiahsaccording to the assumptionsof the scenariofor the small-scale systems. For the medium-scale systems, the importance oa properO&M funding is enhanced by the larger initial investment, and the net - 41 -

Table 7.5: SUMMARYOF IMPACTOF O&M CHACES rin constant1985 US$ per ha)

ERR mP at 10X NPV at 20Z TiY 01 Forgone OhM OEM Forgone 01K Savings Output Impact SaNing8s Outpout Impact- CentralJava Province (2) Y1Y ****(3) M4) (4)/(3)

Small-ScaleSystems Standard 01 (32,000 Rp/ha) 30 0 0 - 0 0 - OM 502 lower (15,000Rp/ha) 29 176 758 4.3 102 127 1.2 01K 662 lower (10,000Rp/ha) 20 228 1,366 6.0 131 378 2.5

Medium-Scale Systems Standard O&K (32,000 Rp/ha) 20 0 0 - 0 0 - 01K 50X lower (15,000Rp/ha) 17 176 1,388 7.9 102 232 2.3 0&K 66Z lover (10,000fp/ha) 11 228 2,502 11.0 131 600 4.6

present value ratio stands between 8 and 11 for a 10Z discount rate and between 2.3 and 4.6 for a 202 discount rate. For both types of systems the implicit rate of return of incremental 01M expenses is high. The project remains viable under present funding conditions but it is nevertheless true that an inadequate level of O0K funding could significantly reduce the ezpected benefits.

Risks

7.15 As discussed above, the project is not excessively sensitive to change in the main variables and its overall risk Level is acceptable. Several elements could, however, contribute to a significantly Lower than expected ERR for the project. Among them, two can be controlled by the ProvincialIrrigation Services: the timelinessof constructionand adequate 0&K funding.

7.16 Becausethe proposedproject focuses on strengtheningthe Provincial IrrigationServices rather than on establishinga new centralproject management organization,local manpowerresources would be used extensivelyand consultant input would be almost exclusively limited to the training of the provincial staff. Inadequate staffingin the firstyear of the project, de.aysin consultant contract award and therefore delays in training con- sL. ite a risk that has been minimized by making consultant contract approval a condition of loan effectiveness and by the expected availability of staff from other Bank-financedprojects which are reachingcompletion (see Annex 2, Table 5).

7.17 As shown above (para.7.14), the level of OWN fundingis one of the key aspectsof the project. While presentlevels of OLW fundingare still below the recommendedstandard, a significantimprovement was achievedin - 42 -

1985/86- especialLyin CentralJava where the O&M allocationreached some Rp 10,700/ha. Nevertheless,the risk of inadequatefunding in the near future remainsunless: (a) both the Centraland ProvincialGovernments increase their commitmentfor O&M fundingin the short term; and (b) some permanent mechanismis found,satisfying both the Ministryof Home Affairsand the Ninistryof PublicWorks, on how to apply the incrementalIPEDA collection resultingfrom the land reclassificationfinanced under the project. While the analysisdeveloped in para. 7.14 shows that the projectremains viable with the presentlevel of O&M expenditures,a comparisonof the NPVs of the incrementalO&M expensesand the resultingincremental benefits shows that the presentfunding level is too low and very costly in terms of forgoneoutput. The risk of inadequateO&M fundinghas been graduallyreduced in the last two Bank irrigationloans to Indonesia(Lns. 2543 and 2560-IND)by financingthe mappingand reclassificationof the projectareas in order to increasethe IPEDA collectionand by obtainingGOI agreementto allocatea share of the incrementalIPEDA revenuesto the O&M of main and secondarycanals. In this project,a similarapproach has been adopted. In addition,a detailedprogram for land mappingand reassessmentin the projectareas has been agreed (para. 6.06).

VIII. AGREEMENTSREACHED AND RECOMMENDATION

8.01 Before loan negotiations, GOI furnished the Bank with:

(a) a detailed implementation schedule for mapping, reclassificationand reassessmentof major systemsrehabilitated under previousBank and ADB-assistedprojects, including the PemaliComal (about 117,000ha), the westernpart of the Jratunselunaproject (about 75,000ha), the Gambarsari- Pesanggrahan(about 60,000 ha) systems in CentralJava and the Cirebon (about123,000 ha), Rentang (about 115,000ha), Sumedang(about 73,000 ha), Cisedane(about 50,000 ha) and Ciujung(about 57,000 ha) systemsin West Java. The plan aims at completionof reassessmentby September30, 1990. A tentative plan for the remainingirrigated areas of each provincewas also provided(para. 3.12); and

(b) a letterindicating clearance by all GOI Grganizationsincluding SEKNEGof prequalificationdocuments for constructionof the Dumpil diversiondam (ICB contract)and of terms of reference(including total consultantinput and divisionof responsibilitybetween local and internationallyrecruited consultants) for the trainingand coordinationconsultancy services related to the provincial developmentcomponent, services for constructionsupervision of the Dumpil subprojectand servicesfor the feasibilitystudy and detaileddesign of the Bongo area irrigationscheme (para. 3.22).

8.02 Assuranceswere obtainedat negotiationsfrom GOI that:

(a) to ensureproper O&M of small-scaleschemes, diversion structures would be operatedand maintainedby the ProvincialIrrigation - 43 -

Servicesand wheneverthe servicearea is divided into multiple tertiaryblocks, channels leading to the tertiaryblocks would also be operatedand maintainedby the IrrigationServices, and adequate O&H funds would be providedfor such schemes(para. 3.04);

(b) for effectiveoperation and adequateconstruction supervision GOI would:

(i) provideseven four-wheel-drivevehicles, 20 light service vehicles,five microbuses,140 motorcyclesand 660 bicyclesfor both provincesbefore September 30, 1986; and

(ii) providean additionaleight four-wheel-drivevehicles, 28 light servicevehicles, eight microbuses,167 motorcyclesand 696 bicyclesfor both provincesbefore September 30, 1987 (para. 3.11);

(c) consultantswould be employedin accordancewith Bank guidelinesto undertaketraining, coordination, studies, designs and construction supervisionaccording to terms and conditionsagreed with the Bank (para.3.15);

(d) constructionof all projectworks would be carriedout in accordance with an agreed implementationschedule - Annex 1, Table 7 (para.3.23);

(e) adequateand separateaccounts for the projectwould be maintained by each ProvincialIrrigation Service, DOI-II and the IPEDA Directorate;all project-relatedcontracts, documents related to statementsof expenditure,and ordersand receiptswould be kept for at least one year after the Bank has receivedthe audit report for the fiscalyear in which the last withdrawalfrom the Loan Account was made; independentaudits by BPKP of each year's accountswill be submittedto the Bank withinnine monthsof the close of each GOI fiscal year (para.3.28);

(f) appropriatemeasures for malariacontrol would be taken in the projectarea, takingenvironmental aspects into consideiation(para. 3.29);

(g) for IPEDA mappingand reclassificationactivities, a coordinating committeewould be establishedbefore September 30, 1986 (para. 4.03);

(h) assign qualifiedstaif and provideadequate budgets by September30, 1986 to recentlyreorganized public works sectionsof the Pati, Kedu, and SurakartaWilayahs in CentralJava (para.4.04);

(i) the requiredstaff build-upfor both provinceswould take place accordingto the numberand timingshown in Annex 2, Table 5 (para.4.04); - 44 -

Cj) M&E units would be establishedand staffedin both provincesbefore December31, 1986,a detailedplan of action for M&E activities would be submittedfor the Bank'sreview beforeMarch 31, 1987 and the M&E units would start implementingthe agreedprogram by September30, 1987 (para.4.07); (k) land reclassificationand taz reassessmentof areas listed in Annex 2, Table 14 would be completedby September30, 1990, a,-'a plan would be furnishedto the Bank by December31, 1988 assigninga portionof IPEDA tax revenuescollected through reassessment to O&M of the irrigatedareas reassessedunder the projectand by December 31, 1989 for the remainingirrigated areas of both provinces(para. 6.06);

(1) begin by April 1, 1990 to carry out the plan of action for the land reclassificationand reassessmentof the remainingirrigated areas of both Centraland West Java Provinces(para. 6.06); and

(m) furnishto the Bank by September30, 1987, a plan of action for improvingthe methodof collectingIPEDA and thereaftercarry out such plan takinginto accountthe Bank'scomments (para. 6.06).

8.03 A conditionof Board presentationwould be the receiptof consultant proposalsfor trainingand coordinationconsultancy services and approvalof tenderdocuments for constructionof the Dumpildiversion dam by all GOI agenciesincluding SEKNEG (para. 3.08).

8.04 A conditionof loan effectivenesswould be signingof the two consultants'contracts for projecttraining and coordinationfor West and CentralJava Province(para. 3.22).

8.05 A conditionof disbursementfor the Dumpil componentwould be the effectivenessof the EEC grant,award of the contractfor constructionof the Dumpildiversion dam and signingof the consultant'scontract for Dumpil constructionsupervision (para. 3.21).

8.06 With the above assurancesand conditions,the projectwould be suitat'iefor a Bank loan of US$166million at the standardvariable interest rate with a 20-yearmaturity, including a grace periodof 5 years. The BorrowerwiLl be the Republicof Indonesia. CS L Up 3333 JAVA EOVZUCtL ZUTUW OhVUmmI"? rumor

Ptelet Oet Sumary

Central Mou Jase Tout * 22 t ot in leg~~~~~~~~~~~~~IalkreSge Totral leal kreSge Tatal leald Foreign Total Leal orwagso Total rforeig total (fp bLillie) (UES *UhlimJ) - ouu_mnap bee. cost

Provinctal Irri otie

low siezctt 4645 - GA6S 6.60 6.60 13.05 - 13.05 31.M6 - 11.66 tppo* an otto ioetiatimt 0.27 0.32 O." 0.3U 0.14 0.47 0.N0 0.26 0."6 0.15 0.24 0.79 4.0 Datad dode 2.136 0.92 3.08 1.39 0.11 2.70 4.05 1.73 5.78 3.N9 1.57 5.25 30.0 CrvU arts 49.75 29.38 79.03 43.73 27.73 71.43 95.50 57.03 150.51 0'.00 51.31 133.33 37.9

Subtotl 58.63 30.12 13.05 32.37 2.6 31.25 311.2O 5.00 174.20 101.O 523.64 34.73 34.7 60-n

bmtttuch_nI D t TrWai sed ceOM MOStIo. c ltsnc 1.72 2.51 4.23 I."4 2.35 3.99 3.36 4.66 3.22 3.06 4.42 7.48 9. tlaing - per dte. et. 0.23 0.30 0.33 0.23 0.10 0.33 0.44 0.2 0.66 0.42 0.U3 0.60 30.0 St ad -tesr see associations 0.17 0.00 0.25 0.13 0.07 0.2S 0.35 0.15 0.50 0.32 oa l s.A 30.0 oticeen and )ur bownig 1.24 0.75 I. 1.26 0.54 1.73 2.43 1." 3.77 2.25 1.17 3.42 34.2 hIclee ad eqaip nt 0.37 0.63 1.23 0.22 O.SI 0.73 0.5S 1.37 1."5 0.54 1.24 1.73 70.0

abtotal 3.73 4.30 3.03 3.31 3.37 7.03 7.24 7.37 15.11 6.1 7.15 13.76 52.3 6.0

IXppin. r eludilstim ad reassessmenst 0.31 1.21 2.02 1.55 2.32 3.37 2.31 3.53 5.89 2.14 321 5.35 60.0 lpnot ne insuitutlnal etreeahoingt 0.12 0.12 0.26 0.12 0.12 0.24 0.24 0.24 O.4 0.21 0.22 0.43 50.0 Tmebal1 assirstnce eneltonto 0.L8 0.28 0.46 @.ii 0.2 0.46 0.36 O.6 0.92 0.33 U.SI 0.64 60.7 totat1 1.11 1.61 2.72 1.41 2.72 4.57 2.91 6.33 7.29 2.68 3.94 6.62 5.5 2.9 Subtotal Preflucal irrigatie 121.40 71.20 192.60 110.36 64.73 375.09 37.0 S~dl _*et and StWil_

ll l Roletian 4.98 - 6.93 6.53 - 4.53 - beige - dralng eod tertiarie 0.n 0.23 0.42 0.26 0.12 0.30 30.0 Divornen do 7.95 6.27 14.22 7.23 5.70 12.93 44.1 tin am scondary tamae 7.51 6.56 16.07 6.63 7.78 14.61 53.3 Drainag aS tertiary devlopoac 2.09 1.39 3.48 I.90 1.26 3.16 40.0 Ofticee ad bo_ldiop 0.15 0.07 0.22 0.14 0.06 0.20 30.C Subttacl 22.97 16.42 39.19 20.9 14.92 35.81 41.7 15.7

Consulting Servicea capi - coaswcronit suparvalon 0.79 1.04 1.83 0.72 o.9 1.67 56.8 teas area - feaibillty studle end detalad de 1.15 1.0 2.23 1.05 O." 2.03 46.4 blmok-Fonare dramneaed Dettiur Jrqnn ara l.Sb 1.95 3.51 1.42 1.73 3.20 55.6

Subtotal 3.50 4.07 7.57 3.39 3.71 6.90 53.3 3.0 Subtotal Ompil and3thdiec 24.4 20.49 46.96 24.08 13.63 42.71 43.6 Mdnlntrstlvo ad Oerhmeds 11.02 - 11.02 10.01 - 10.01 - 4.4

to Wet 153o.89 91.69 250.8 344.45 83.36 227.31 36.6 300.0 rbyalcAl cestingeciea 16.83 8.87 2370 13.48 6.07 21.55 37.4 9.5 Prce coattigeni 35.60 24.62 53.22 30.56 22.38 52.96 42.3 23.3 Total 207.32 125.18 332.50 336.49 113.31 302.30 37.6 132.6

Of whch t 26.62 - 26.62 24.20 - 26.20 - 10.6 AX 1 46 - Table 2

,INDONESIA

CENTRALAND WEST JAvA POVINCIAL IRRIGATxONDEVELo wENT PROJECT

Annual Expenditures by Project Couponents

1986 1987 1988 1989 1990 1991 Total Total (Rp billion) - (US$oln)

ProvincialIrrigation CentralJava Irrlgationdevelopment 3.06 13.90 19.72 24.08 17.58 10.61 88.95 80.86 Institutionaldevelopment 0.46 2.30 2.11 1.61 1.00 0.55 8.03 7.30 IPEDA (land tax) 0.29 0.89 0.82 0.54 0.17 0.01 2.72 2.47

Subtotal 3.81 17.09 22.65 26.23 18.75 11.17 99.70 90.63

West Java Irrigationdevelopment 3.42 12.55 18.28 21.04 15.62 10.34 81.25 73.86 Institutionaldevelopment 0.49 1.95 1.74 1.43 0.93 0.54 7.08 6.44 IPEDA (land tax) 0.51 1.91 1.33 0.59 0.08 0.15 4.57 4.15

Subtotal 4.42 16.41 21.35 23.06 16.63 11.03 92.90 84.45

SubtotalProv. Irrig. 8.23 33.50 44.00 49.29 35.38 22.20 192.60 175.08

Dmpil Subproject& Studies Civil works 1.74 8.89 12.22 11.01 4.16 1.37 39.39 35.82 Consultingservices 1.10 3.25 2.37 0.63 0.16 0.06 7.57 6.88

SubtotalMid-Lusi 2.84 12.14 14.59 11.64 4.32 1.43 46.96 42.70

AMuinistrationand Overhead 0.56 2.31 2.84 2.72 1.65 0.94 11.02 10.02

Base Cost 11.63 47.95 61.43 63.65 41.35 24.57 250.58 227.80

Physicalcontingencies 1.15 4.42 5.81 6.05 3.95 2.32 23.70 21.60 Price contingencies 0.46 5.59 11.78 16.92 13.90 9.57 58.22 52.90

Total 13.24 57.96 79.02 86.62 59.20 36.46 332.50 302.30

Of which taxes 1.04 4.78 6.24 6.75 4.77 3.03 26.62 24.20 ANNE 1 47 Table 3

INDONESIA

CENTRALAND WEST JAVA PROVINCIALIRRIGATION DEVELOPMENT PROJECT

Proposed Allocation of Loan Proceeds

Base cost plus expected Loan Disburse- price Increases amount ment - (US$ million) --- (Z)

Civil works (a) Officesand housing 4.0 4.0 100 (b) Other civil works 186.5 128.8/a 75 Miscellaneousequipment 0.7 0.4 65

Consultantsand training 25.2 21.6/b 100

IPEDA related (a) Mappingand ownershipidentification 4.0 3.6 90 (b) Reclassificationand reassessment 2.0 -

Land acquisition 20.4 -

Projectadministration 12.3 -

Physicalcontingencies 21.6 -

Vehicles(reserve procurement) 1.4 - Uhallocated - 7.6

Total Costs 278.1 166.0

/a Seventy-fivepercent of US$171.8million as US$14.7million expected to be financedthrough an EEC grant for constructionof Dumpil diversion dam.

/b Consultancy 3ervices for the Dolok-Penggaron drainage design and studies, as well as design for Tuntang-Jragungarsa (US$3.6 million including contingencies)to be financed throughan EEC grant. ANNEX1 - 48 - Table 4

INDONESIA

CENTRALAND WEST JAVA PROVINCIAL IRRIGATION DEVELOPMENTPROJECT

Projected Disbursements

Bank fis- Disbursements Profile cal year & Semester Cumulative Project Irrigation prvJects semester -- (US$ million) - (Z)

1986 Second 0

1987 First - 2 Second 8.0 8.0 5 6

1988 First 10.0 18.0 11 11 Second 12.0 30.0 18 17

1989 First 14.0 44.0 27 25 Second 16.0 60.0 36 33

1990 First 17.0 77.0 46 42 Second 18.0 95.0 57 51

1991 First 17.0 112.0 67 60 Second 17.0 129.0 78 69

1992 First 14.0 143.0 86 77 Second 12.0 155.0 93 83

1993 First /a 11.0 166.0 100 89

/a Closing date December 31, 1992. ANNEX1 Table 5 - 49 -

INDONESIA

CENTRALAND WEST JAVA PROVINCIAL IRRIGATION DEVELOPMENTPROJECT

Estimated Annual O&MCost per Hectare (in 1985 prices)

Z of Item Amount total (in Rp)

Salaries, wages and allowances /a 6,000 33

Materials, fuel, tools and spare parts 1,500 8

Office supplies and miscellaneous 500 3

Travel and training 1,500 8

Temporary labor for maintenance 2,000 12

Maintenance through contract work 6,000 33

Replacement of vehicles and equipment 500 3

Total 189000 100

/a Including provisions from provincial budgets. AN I -50 - tobo

CUITtAL AMD MSIT JAVA PROVMICIALIflIGATIZO DESVELOINRUVROJBCT

_mamry of Codultcnts Snput

!nteru tional Local conoultonts consultants 'rofeomlonal Technlelsn

Training and Coordinatlon Conoultaoto - Tem lenders 60 120 - On-the-job training S4 20n - Short feasibility and detailed desin Cibun and Cikaso--. Java 10 30 30 Feasiblllty study environmetal and resettle._t plan for Randuguntion 12 S0 40 system - Central Java M&E plun of actlon 4 8 _ No - 3 reports 6 12 6 Mid-term revie and completion report 1S 36 6 Planmlg and Qesign - review design and complete drawings 50 320 220 Constraction supervision coordination 36 144 - 0OU ceot n 36 hR - Unallocated 17 32 18

Subtotal 310 1.W0 320

Dupll Construction Supervision Team leaders 24 42 - Construction and completion of drawings - 40 60 Civil work. supervision 18 120 In Mechanicsl and electrical supe- vision 10 20 S Specialized services 5 Unallocated 3 18 15 Subtotal 60 240 9n

Bongo Area - Fesiblllty Studies and Detailed Desitn Tem leders 10 24 - Feasibillty studles 25 60 3n Detailed design 1n 10o l1a Unallocated 5 16 10

Subtotal 50 200 150

DelokIU gron Area Drange Desisn, Tuntanx-Jragung Area Studles and Detailed Deslgn Team leaders 24 36 - Dolok-Penggaron drainage 18 60 60 Tuntang-Jragung studies 30 50 20 Tuntang-Jragung design 30 150 150 Unallocated 8 24 10

Subtotal 110 320 240

IPDMA Technical Assistance Advisory cosumtancy services 36 18

Total 556 1.868 Ron e UTOAL 4113 ? JAYA 30Y21L lfhaum *yu&ounet ,n,_U

Pro" mlI Cmeedtmts meee.ttlm 0..1 m.e.t a ~raemd abt litn d sss~~~~~~~~~~~~~ebtm Frae.la ntafa Wlemia lantaw-tawto rw~ btwee aaucp datlety ~ ~ ~ ~Edah lmel1 ~~~IIe/teeul I tial lwleu _pma Uvetl md dte dt

Dm1-I FTUTih mealm,(10.000 h.) 02/153/I, 04/13/10 MISO/as 0321/50" 06/30/00 07/131l44 0031I06 07131117 run hbhbllttattAa a emdlaO (23.000 be) 02/15I. 04/13/10 0630104, 03/31/U 00/2301" 07131/00 COlMIN 07/31187

IM-& _di= mate (19,000 ha) 1110111J 3212111 01132107o2/13187 03/231/7t M S? 021/07 Or3M IminbUfatitot &s anwilas t6.000 hao) 111l0OMt 1211/160 e0l//a7 02/33/17 02/21107 m0Wl2067 e13/11170031/3u

AiFwblELml. (7.000 bh) el0l/S1Ia 02I1u 0W2101 02/31/00 04/3 001 0021S mo/wo0 WI/U30 kAhmblitatiea a anradlau (10,000 ha) 01115/U 02/13/111 03/01M0 02/31/U8 06/30/U5 03/1/U 0101203 "00120/9

Ctwil biwk

Qitr.1 Java (tdm t_ al t_.1c m s al a., oil a macaw. 03/13/00 07/13/30 00/i1t30 10/13116 113/0/50 03113/07 00/30/07 030120/S _Ipa mec_ was c_al all a mec*_ . 03/13/37 07/13/37 081/3/17 L1/13/07 11/30/07 0213/U8 00/20/U 00/20/o PAI 1 03/13/urn 07/13/U 01/V3 s 10/13/50 11l/1sn 02/113/U 00/30/39 00/21019 lkat Java

CN-1_rt acn C*Cdl* m meale) 03/113I5 07/13/f1 0/133/00 1O/16I 11/20130 02/13/17 00/20/87 0/3013 Ciketa. 11 (rMbahtUtetl) 03/3/3 07/13/0t 00/331d, 10/13/16 11/20/04 02/13/67 00130/57 0302090 Ciketa. I (rasidlltacla.) W031/707/13/37 Ul3I/17 10/12197 IL/M7 03/V/U 00/30/U 00/20101 IS CIntmtrtac

MINORUi WAel C3.400 hae) 021Y13/3 00113/30 00/30/00 00/U/U 07/231/0 00/31100 O30/2 01113 /1/7 ihabUftatlaa * mg (10.300 ha) 03/lS/I O&33 0t30/21 00/13/U 07/31/U 00/3104 00/20/10 03/1J7

U~06 N seas (14.000 ha) 01113/17 02/15/07 02/01/17 00/13/37 03/31/37 o0/017 W7/IWu7 00/20/1 hAhit tLItea Mfad. (32.100 he) 01113/37 02V13/7 2/1/07 00/134/7 03/31/67 0012017 97/13J17 OW/201

MR/19 Pv_r_ _iu T _t ea-l (11.400 ha) 0 3UIvuU 03/106LV0213/ 00/31110 05321/50 00/20/U 01/33101 09/2W039 klsiahtstat 1 upeadies (40.000 ha) 01/1s/ 02/13/U 0101/1U100 e/3/U 013/1/U 0/2I/U 07113M 09/2013

liWlP-5-uiim sasle (31.000 hb) 01/13/39 0n2/13/l9 02/o01e 00/2319 0V3/1/ 0o/s201 07/1s9 W30120100 tbhaIletal 0 apgeadtas (9.e00 ha) 01/3/6 02/1/3 02/01/U 00/153/9 032/39M 00320/0 07/15/1 09w/0190

meal- (12.400 ha) 01/13/90 02/1159 301/0 00/3300 0/3/1/90o7/3I/M 0613190 0e9/20/I bbAbi.ltatlaa 0 .pggfaia (9.300 ha) 01113/U 02113/90 03101/U0 00/15/90 0/3/1/90 00/30/90 07/33190 09/20191

tIalma da CoattmatameI/I1113 1ervl lamf 30121/33 1il3sla3 12/31o3ase 02/23/U OeU1/ec 02/153/I 07/13/91 1130 Lead biteIbaay Dmwearctiou W231M 02/13101 02/1/VU OWING1 07/31/50 09/20/U 10/3/06I 03/20/ . 'tlima 09/2/7 0/20139 beeaea 4W0M/0 09/20190 i-httcal aaalotacce - countmey _erete 12/21/35 O2/1 00W/0/U e00/20/I 00/31/0 I31/86/3011/0 09/201 DMOL Clll Vbika .1-Iz I Wa CMucto iratuam- itR de, (EC ftinuaa) L 09/20/03 11/20133s 1/33/l 3 02/1313 02/3/3 O 0030W*$e00/1 00/20109 le Ugatrmea-ript was a mecmda!y cmel. 02/1/3Un 03153/3 00/13/6 08/3111 10/31/U 01312117- 04/20/37 0o/203 Leftme a e ee y mel 021/07 0213/3Y7 06/13137 00/31/07 310/1/7 01/31/U 0/oYe o02/1/9 Ibtt_ram-tiit male &a8meamiry cael e933/87 11113/37 12/13/37 02/01/U101 /WU 07121/U 920U 02/21191

Dea.. t UElMMOe a TaatSAr kamlema-- Lae Ce_derelm 7M7I -~_. (3.000 be) 11/30/37 IV31/67 01/S127 02IS/ 03/1/017 04/30/37 0S/207 0Z0/216 M/1/9 prawas (0.300 be) 120/ 12131/8U 01/13/U 02/1513 02/31/U 00/30/U 3/|21/UIj1SO/U0

UC C etrrete - D l__ FmWDF r_snw 0/01/3 02/01019 00/ 011 03/13elMu 00/13U 07/21/33 01/2VU 00/21/3 F/"l per_ (3.000 ha) 02/01/6 023/01/U 0001/39 03/ev/u9 00/200 07/31/U1 01/U1/aU 0/31/90 M10191 peqna (2.000 hem) 02/01/90 02/01/90 040/1/90 02/13/10 00/2010 07/1/310 01/31/9 00/1/311 Dm1-l fedtsa 4 I_t. lCmutmeyr Nateo D_Pu rieruet_tee 0/Ow 35 113/S 121/13/3 02/13/34 O3/1/ 07/1311d, 09/320/I 0/13L/90 _ *amarea (rtb _b ) t atadmes 1 detald deee 00/313S3 1113CVS5 12/1338Y e233S/ 0W2L/S1 67/31/U 0/2011, 0w3/WU blek-Psmelr draleag dam * ltams- .Iagi.ag -r maudin. L detaled dAng (gC f0lmlo) la 00/21/03U 1230/05 12/13/ 02/135/ 0/113130U 07/1/30 09/V13 2101

Apeeal of preqmeLttlcam demet_ tfr NMea sad ton ot r for commltera by mU 01 eatbouit. fm liletd an eamtim of le

f Approval of taeSar decoweeta aed receIpt of comeuatear pespeaml by All 001 autberlties am,ceaditiam af MeatS frtmmatlea. k ISlad at eoaomealtantst eacitc as edjtlor ofl Las. IacttmaeaUs. L A.rd af centract for e_mcrctle ead oIgalugt ooeadteatue camt,actmdlllae of LenaO mt for the town cr_net. Li~Tatl.. Oc5md"ele. aahJMt tO MC realm aS Agremnut. ANN 1 Table 8 -52 -

INDONESIA

CENTRALAND VEST JAVA PROVINCIALIRRIGATION DEVELOPH4NTPROJECT

Estimated Cost - Detailed Design Through Local Consultants

Ouantity (ha) Unit cost Total cost Item C. Java V. Java Total (RpOOO) (tRpmillion)

Provincial Irrigation Development

Rehabilitation schemes (including tertiaries) 20,000 25,000 45,000 55 2,475

Small-scale 14,000 11,000 25,000 44 1,100

Medium-scale (includingtertiaries) 12,000 5,000 17,000 77 1,309

Upgradingof existing schemes 30,000 20,000 50,000 22 1,100

Subtotal 5,984

Dumpil Area

Drainage works (including secondary drains) 2,500 - 2,500 44 110

Tertiary developnent 11,300 - 11,300 22 248

Subtotal 358

Total 6,342 53 ANNEM I

INDONESIA CENTRALAND WEST JAVA PROVINCIALIRRIGATZIO DEVELOPMT PROJECT

Cantral and West Java Provincial Component Estlmated Cost for Training /a

Quantity Unit cost Total cost (Nontha per diem) (Rp'000) (Rp uillion)

Trailngg Provided by !PV (Diklat) =ng1neers: 4 per year, eacn province for one onth - 4 x 2 x 5 x 1 - 40 40 550 22 Technicians: 8 per year, each province for two uonth - a8 z 2 x 5 x 2 - 160 160 330 53 NontechnIcal staff: 4 per year, each prov- lnce for one uonth - 6 x 2 x 5 x I - 40 40 330 13 Transportation & aiscellaneous 120 220 44 Subtotal 132 on-the-JobDrL!!!j Project bcaff-- TeacnIngusterial and manuals LS - 27 Outside instructors (4 per year, each province for 2 uonths) including travel andallovane - 4 x 3 yra x 2 x 2 - 48 48 1,650 79 Wilayah and field staff (25 per year, each province for one mouth) including travel and allovance - 25 x 3 yrs x 2 x I - 150 150 330 50 OWMStaff Teaching asterial and manuals LS - 55 Outside instructors (6 per year, each province for 2 months) including travel and allowance- 6 x 4 yrs x 2 x 2 - 96 96 1,650 158 Travel allowance for central team (3 per year, each province for 4 months) - 3 x 4 yrs x 2 x 4 - 96 96 330 32 Fuel and miscellaneous expenses LS - 31 Construction Supervision Teaching uateral and manuals LS - 31 Outside instructors (2 per year, each province for 2 months) including travel and allowance- 2 x 4 yrs x 2 x 2 - 32 32 1,650 53 Travel allowance for central team (2 per year, each province for one month) 2 x 4 yrs x 2 x 1 - 16 16 330 5 Fuel and miscellaneous expenses LS - 11 Subtotal 532 Total 664

/a Excluding Water Users Associations, vehicles and equipment. 54 - ANNEX1 Table 10

INDONESIA

CENTRALAND VEST JAVA PROVINCIALIRRIGA!ION DEVELOPMENTPROJECT

Central and Vest Java Provincial Cooponent

Estimated Cost - Hbultorint and Evaluation and Water Users Associations

Quantity Unit cost Total cost (Mbnths per diem) (Rp'O00) (Rp million)

Monitoring and Evaluation /a Training of unit staff per dlem - 3 for each provine for 3 months - 3 x 2 x 3 18 550 10 Outside instructors or DPP staff to assist in analysis twice a year - 4 x 2 x 8 x 1 month 64 1,100 70 Training of field-level staff - 180 x 4 720 220 159 Printing of forms and other material LS - 26

Subtotal 265

Water Users Associations Per diem, etc. for training of various groups Group A - 50 per province for 4 days/year - 0 x 2 x 4 + 20 20 500 10 Group B - 200 per province for 16 days/year - 200 x 2 x 16 . 20 320 200 64 Group C - 400 per province for 18 days/year - 400 x 2 x 18 + 20 720 50 36 Outside instructors (2 per year, each province for 3 months) including travel and allowance - 2 x 4 yrs x 2 x 3 48 1,500 72 Travel allowance for central team, 6 per year each province for one months - 6 x 4 yrs x 2 x 1 48 300 15 Training material and manuals LS - 42 Fuel and miscellaneous expenses LS - 10

Subtotal 249

Total 514

/a Excluding vehicles and consultants' input. -55 ANNEM1 Table 11

INDONESIA CENTRALAND WEST JAVA PROVINCIALIRRIGATION DEVELOPMENT PROJECT

Central and West Java Provincial Component

Estimated Cost for Offices and Juru Housing

Quanjity Unit cost Total cost 0(RpOOO)(Rp million)

OfficesIncluding Rehabilitation of Existing

CentralJava

Extensionof provincialoffices 500 275 137

Improvementof wilayahand section offices 1,000 192 192

West Java

Extensionof provincial offices - -

Improvementof wilayahand section offices 600 192 116

Subtotal 445

Juru Houses

CentralJava (300 x 36) 10,800 140 1,663

West Java (300 x 36) 10,800 140 1,663

Subtotal 3,326

Total 3,771 S Toble 12

IDONESIA

CENTRALAND VEST JAVA PROVINCIAL T DEVELOPENT POJECT

Cautral and West Java Provincial Componat

Estimted Cost of Vehicles and Miscellaneous lquslmt

Quantity Udnt cost Total cost C. Java W. Java Total (lp'000) Clp million)

MIscellanseous quitimnt

Theodolites 8 7 15 5,500 82.5 Laveling instrumets 16 14 30 2,200 66.0 Tapes 60 50 110 110 12.1 Compasses 60 50 110 - 330 36.3 Niscellaneous (rods, etc. In lots) 11 10 21 1,100 23.1

Subtotal 220.0

Office and Drafting Microcoaputers including software 7 7 14 73700 107.8 Electric typewriters 7 6 13 2,200 28.6 Drafting machines 20 20 40 550 22.0 Printlng machines 2 2 4 3,850 15.4 Photocopiers 3 3 6 2,750 16.5 Tlezx aschines 1 1 2 12,100 24.2 Miscellaneous office furniture LS LS LS 22,000 22.0 Subtotal 236.5

Generators 7 6 13 550 7.1 Overhead projectors 7 6 13 550 7.1 Video equipment 7 6 13 2,750 35.8 Current meters 7 6 13 3,740 49.0

Subtotal 99.0

Total Miscellaneous Equipent 555.5

Vehicles (Reserve procurement) Four-wheel drive vehicles 5 10 15 14,850 222.7 Lglht jeeps/pickups 44 4 48 11,000 528.0 Nicrobuses 7 6 13 6,930 90.0 Motorcycles 192 115 307 1,320 405.2 Kicycles 681 675 1,356 110 149.2

Total Vehicles 1,395.1

GRANDTOTAL 1,950.6 - - h~~~~~~~~ble13

- S7 - INDOMBI

CIJNTRALAND WEST JAVA PROVINCIALIRRIGAflEO DEVULOIHKUTPROJECT

stimated Coat - 1nPDA Ispping and Reclassification Work

Quantity Unit cost Total cost m C. Java W. Java Total Unit (Ep'000) (Rp million)

__4ng, RAclassificatlon and eassessmnt Yev aerial photography (1:10,000 scale) 210,000 415,000 625,000 ha 1.43 894

Cround control - 1,150 1,150 km 121.0 139

Aerial triangulation 500 2,690 3,190 model 84.7 270

Rectified photo maps (1:5,000 scale) 300 605 905 aheet 310.2 281

Village line saps (1:5,000scale) 430 735 1,165 sheet 242.0 282

Plot line naps (1:2,500 scale) 1,020 1,820 2,840 sheet 91.3 259

Propertylisting for each villAge and boundary ldentiflcation 151,000 268,000 419,000 ha 4.1 1,718

Rtelassificatlonsurveys 251,000 419,000 670,000 ha 2.0 1,327

Reasseesment 251,000 419,000 670,000 ha 1.1 737

Subtotal 5.907

mmgthdeangof IPDA Central and Provincial

Mtcrocomputers,lncluding software 6 6 12 each 7,700 92

'iotocopiers 3 3 6 each 2,750 17

Lscellaneous office and survey equipment LS LS - - - 154

, aining of central and provincial staff

Por compater Fee for 20 staff mebers 10 10 20 each 330 7 Per dlem and allounees for 3 amonths 30 30 60 month 1,650 99

lhpping LS - - 57

Reclassification S - - - -9

Subtotal 485

Total 6.392 AMNNU2 Table 1

INDONESIA

CENTRAL AND VEST JAVA PROVINCIALIREICATION DEVELOIEPNT PROJECT

CWiatologlcal Data

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

Rainfall (m)

Central Java Sma rang 669 362 309 203 145 83 74 54 74 149 172 245 2,539 Sarakarta 299 259 313 182 120 69 29 34 41 95 150 231 1,822

West Java Bogor 330 203 255 327 197 85 65 102 123 278 296 341 2,602 Clrebon 473 367 374 187 171 76 27 18 33 70 151 287 2,234

TemperatureC(C)

Central Java (Semarang) MaXIMuMS 29.1 29.4 30.5 31.9 33.0 32.8 32.7 33.3 33.8 34.9 34.5 31.8 32.3 Haan 26.1 26.0 26.6 27.4 27.8 27.4 26.7 26.5 27.1 28.6 28.9 27.7 27.2 Minium 23.6 23.4 23.7 24.2 23.0 23.5 22.7 22.1 22.3 23.7 24.4 ; 3 23.4

Vest Java (landung) Nazismm 24.4 23.0 24.6 26.8 28.0 24.0 24.1 23.0 26.0 27.8 27.2 29.9 25.7 muan 22.4 22.4 23.3 23.4 25.0 22.0 22.1 22.0 23.0 24.9 24.1 25.0 23.3 MinImum 20.4 21.8 22.0 20.0 22.0 20.0 20.1 21.0 20.0 22.0 21.0 20.0 20.9

Relative Humidity (Z)

Central Java (Semarang) 86 87 84 81 74 74 72 67 65 62 71 80 75 Vest Java (Bandung) 90 91 89 97 97 88 84 90 89 95 92 97 92 Stmshine(X)

Central Java (Semarang) 40.6 50.2 61.6 70.8 75.2 73.4 83.2 87.4 85.4 85.6 68.0 46.8 69.0 Vast Java (Bandung) 48.0 47.0 33.2 59.0 60.9 66.7 74.0 64.5 50.0 49.0 44.0 41.0 53.1

Vind Speed (klmhr)

Central Java (Semarang) 8.3 8.1 6.8 6.3 6.7 7.2 7.6 7.8 8.0 7.2 6.8 6.5 7.2 Vest Java (Bandung) 3.3 1.7 2.4 2.2 1.5 2.2 2.6 1.5 1.5 2.4 2.4 1.3 2.0

Evaporation (Sa) (USDA ClAss A Pan)

Cantral Java (Semarang) 3.9 4.2 4.1 4.5 4.6 4.7 5.1 5.7 6.1 6.0 5.1 3.9 4.8 West Java (Bandung) 3.6 4.6 4.4 5.5 4.4 4.6 4.7 5.0 5.1 5.1 5.0 5.1 4.8

Source: DPMABandung, 1983 and Central Java Selayang Pandan8, 1983. ANNEX 2 Table 2

- 59 -

INDONESIA

CENTRAL AND WEST JAVA PROVINCIAL IRRIGATION DEVELOPMENT PROJECT

Present Land Use of Central and West Java Provinces

Central Java West Java Area Percent of Area Percent of Category (ha) total area (ha) total area

Irrigated Sawah 756,000 24 1,132,000 26 Rainfed Sawah 255,000 8 272,300 6 Tegal (upland dryland) 781,000 25 1,018,000 23 Estates and plantations 99,000 3 329,000 7 Forest and scrub 511,000 16 952,000 22 Housing and gardens 573,000 18 359,000 8 Unproductive land 190,000 6 356,000 8

Total 3.165.000 100 4,4182000 100 ANNEX2 Tahle 3

INDONESIA.

CENTRALAND WEST JAVA PROVINCIAL IRRIGATION DRV'LOPTENTPROJECT

Summary of Farm Size Distribution and Land Tenure (Z)

Central West Dumpil Java Java Subproject

Farm Size Less than 0.25 ha 25 49 3 0.25 - 0.5 ha 30 27 29 0.51 - 1.0 ha 28 15 32 1.01 - 1.5 ha 10 5 20 More thanl1.5 ha 7 4 16

Total % 100 100 100

Land Tenure Owner-operator 79 70 71 Tenants 11 15 18 Sharecroppers & ied 10 15 11

Total 2 100 100 100 * ClU"AL WESTJAVA 1oUctAL .antaToN DEMYIKUN ITOJECT

COatul and bat Java Provslctl , e eaeaat

Areas Cvernd eader Vartious Ik-Adoatad lro&ecta

. 1emntattoa Ioau/cr.dtt Areas covered In liactaree Studies and deotm Man/Icrdit prriod AMunt lababili- Katonton Tertiary tot future amber Pto To (OS$S ilton) tation Raw art Drainag developmeat Implemmntation

Central Java it C1 Area Cr 220-IND 1971 1977 3.0 123,000 tn 1268-ID 1977 1983 31.0 21,000 rainag" etudlec ad dealg L 1t11-twED 1861 t966 115.0 50.000 Frteqy de"lop_ent design Senkaraa A I.oll At"s area La 211-lElD 1962 1967 37.0 0.51>g Cleanareag Uvevt hslm tudy

lubtatal 123.000 71.000

ratuotlus Area Oirpa PsedaI system Cr 127-lID 1969 1977 3.0 47,400 in 1268-lID 1977 1984 33.0 4,500 S deku system IA 1435-lD 1976 I49 35.0 6,000 19000 86000 in 1579-lED 1919 1965 31.0 DoSega of aan bsrrage nd Dmpil

srang Ortaig.e I 1811-1ED 1961 1986 t16.0 bduag Oubo _m la 23143-1D 1985 1991 156.0 23,100 61,000 25,100

Aubtetal 53.400 23100 80.000 37.400

Total Central Java 176.400 2S,100 80.000 106.400

bast JOLa StiMuCur authority area Cr 195-lD 1971 1979 18.5 235,000 Cr S14-tD 1976 1984 50,000 La 1268-RED 1977 1984 33.0 23,000 ClP&MiSMS system IA 1579-1ED 1979 19ss 51.0 7,600 7,600 In 1645-lED 1979 1986 77.0 190,000

Subtotal 253,000 S7.600 222,600

buleeg area Cc 127-lEM 1969 1977 5.0 92,000 La IIOO-lID 1976 1984 65.0 30,000 60,000 in 1434-IlD 1976 1983 66.0 Terttary da"lopat desip Lower Cesnuk La 1691*IIID 1960 193e 30.0 1. control LA 2118-lU 3982 1967 37.0 Jatigda da daolip

Subtotal 92L000 _ 30.O *0.000

Ctrnbon atr 1 1100-lID 1976 1964 65.0 8,O000 256OCr 65,000 In 1434-lID 1976 1963 66.0 Tertiary deloput dealp Cr 995-lED 1961 1965 37.6 Se.rau-Ibjalaegka deslga

Subtotal 88.000 25.000 65,000

Ciujuns area Cr 220-tiD 1971 1979 14.5 24,300 In 1268-lED 1977 1984 33.0 7,000 Drainage desip [A 1U434-ID 1978 1985 63.0 5,700

Subtotal 24.300 5.700 7,000

Ciradan area Cr 127-lID 1969 1977 5.0 41,000 La 1268-lED 1979 1964 33,0 6.000 Drainage decstg In 1645-l1D 1979 1986 12,000

Subtotal 42.000 12.000 6.000

Total let Java 499.300 57,600 72.700 310.600 CWErAL An WVSTJAVA FUOD CUL IUIA. SIOC D3WeOAT 1103C3T

Cantral and bt Je rOvfLel Corat kafinaletnlrmati

costttalJava Vogt Java Total. Teelialeul Noteezhalcl sTechnial btebalm T*Cb"Cl th.eech 11aber WEhbut I3La 1I6 SIX Other la1.' ASD Other I3L* 313 Sr1 Othar level ADl Other 313 Ss Other lavl AM Other

Provincial level 17 31 70 4 9 6 106 13 22 12 22 3 9 46 30 53 82 26 12 15 152 Vlayah Level 7 46 74 38 a 9 279 7 27 113 11 - 25 122 14 i5 187 49 a 34 401 SktteC seCubaCtetlaleveL U4 16 660 146 - - 817 7 33 333 2S - 37 560 31 49 1,013 175 - 37 1,377

Subtotal 46 95 824 168 17 15 1.202 27 82 458 62 3 71 728 75 177 1.282 250 20 6U 1930

profSC a llvl 16 39 86 3 11 15 210 12 17 36 IS 3 16 62 26 56 122 i6 14 33 172 VIlAYhelevel 5 30 96 16 12 2 260 5 32 144 - - 25 152 10 62 240 18 12 27 442 Section a subscttionlevel 27 61 784 161 32 - 644 12 48 596 - 14 42 572 39 109 1,362 161 44 42 1,434

SobtOtal. 48 130 966 182 55 17 1.234 9 *7 776 IS 17 *5 616 77 227 1,76 197 72 102 2 NO

StOTtlall& SOUre. 2dditlOaul *taff requiremnt 35 142 (6) 38 2 32 2 15 320 (47) 14 14 68 2 50 42 (53) 52 16 120

CberU ttent /b fffr86 - 4 10 2 - 4 - 1 44 1 - 5 - 5 54 3 - 9 1967 4 14 2 - 4 - 1 38 1 - 4 - S 52 3 - a 1966 4 12 a - 4 - 1 34 1 - 6 - 5 46 3 - 10 1969 4 12 2 - 4 - I 2i I - 5 - S 40 3 - 9

Traaf f r Secal Pro jct

1986 2 10 4 2 4 1967 2 is 3 - - Citnadudy 1968 3 10 4 - 2 1969 3 10 3 - - Sergavn SOlo 1967 3 10 4 - 4 1986 3 15 4 - 2 ebaruari-Pteaqagrahan 1917 1 12 4 - 196s 2 12 4 - 4

Subtotal. Centrel Java 35 142 38 2 32 %ut Java

1966 1 2 17 2 1 12 1987 0 2 16 1 1 6 Cleedone 1966 1 1 25 1 2 7 1987 0 1 as 2 2 7 Cirebon 1967 2 20 1 1 6 1966 0 1 29 1 3 7 bL Toluk tade 1966 1 22 1 2 13 *r 1969 0 1 20 1 2 6

Subtotal, tast Java 2 I 120 14 14 8J

/I bIvAro with 15 yearo of expergince and 8B1 degr is conetdered equivalent to Mainers utib 12 degree. Iacludes pronotion of qualLfied staff. ANNEX 2 -63 - Table 6

INDONESIA

CENTRALAND WESTJAVA PROVINCIALIRRICATION DEVELOPMENTPROJECT

Central and West Java Provincial Component

Provinclal Budgets and Areas Developed FY197980 to FY1984/85 - Central Java (In milllon Rupiah at current prices)

Repelita III Repelita IV Items Proposed 79/80 80/81 81/82 82/83 83/84 84/85 85/86 86/87

Operationand MaintenanceBudget Salarles,wages and allowances: Paid through Central GOI Budget 2,050 2,885 3,390 3,440 3,730 3,700 3,800 4,200 Paid through Provincial Budget 390 565 570 650 425 700 760 850 Materials, tools, fuel and spare parts 290 405 600 540 465 620 630 700 Office suppliesand siscellaneous 30 155 180 270 345 390 410 500 Travel and trainlng 20 110 140 135 170 250 270, 300 Maintenancethrough contract work 1,475 1,970 2,250 2,690 3.025 3,210 3,110 3,500

Subtotal 4,255 6,090 7,130 7,725 8,160 8,870 8,980 10,050

Operationand maintenance activities (assumed 90Z) 3,830 5,480 6.420 6,950 7,340 7,980 8,080 9,050 Developmentactivities (assumed 10%) 425 610 710 775 820 890 900 1,000

Irrigatedarea under provincial service (ha) 748,500 748,500 753,300 756,300 756,300 756,300 756,300 756,300 0&M cost per hectare (RLpiah) 5,120 7,320 8,540 9,190 9,710 10,550 10,680 11,970

DevelopmentBudget Rehabilitation 980 1,300 1,570 890 850 335 660 2,300 Small and medium scale development 1,050 2,050 3.900 3,985 3,330 2,700 4,300 4,300

Subtotal 2,030 3,350 5,470 4,875 4,180 3.035 4,960 6,600

Areas developed (ha): Small scale - 560 540 160 610 310 570 1,500 Medium scale 680 2,750 1,670 1,270 1,370 460 830 1,200 Rehabilitation 1,090 820 450 - - - - 2,000 Tertiarydevelopment 350 12,650 10,000 10,700 8,160 4,090 6,900 2,800

Subtotal 2,120 16,780 12,660 12,130 10,140 4,860 8,300 7,500 ANNUC2 - 64 -Table 7

NDONIA CENTRALAND VEST JAVAPROVINCIAL IIUGATION DEVELOPHENTPROJECT

Central and West Java Provincial Component Proviaul Bodsetsand Area. Develoued 1T1979180to F1984jr85 - vast Java (In millionBuplah at currentprlces)

Repellta TII _ Apelita IV Items Propo. 79/80 80/81 81/82 82/83 83/84 84/85 85/86 86/87

Operation and Maintenance Budget Salaries, wages and allowane.r: Paid throughCentral GOI Budget 530 775 870 820 820 840 1,020 1,300 Pald throughProvincial Budget S5O 730 920 1,260 1,350 1,360 1,360 1,400 Materials, fuel, tools and spareparts 325 500 440 540 580 700 1,020 1,150 Office supplies and uimcellaneous 90 185 190 380 410 440 460 500 Travel and training 65 110 170 280 300 350 290 460 Maintenance tbrough contract work 780 920 1,040 990 1,060 1,180 1,220 1,350 Subtotal 2.300 3.220 3.630 4.270 4.520 4.870 S.370 6.160 Operationand ualatenance activities(assumed 902) 2,070 2,900 3,270 3,840 4,070 4,380 4,830 5,540 Developmentactivities (assumed10}) 230 320 360 430 450 490 540 620 TIrrigated area underprovincial service (ha) /a 561,400 554,800 548,300 557,400 557,400 557,400 557,400 557,400 06M cost per hectare(Rupiah) 3,690 5,230 5,960 6,890 7,300 7,860 8,670 9,940 DevelopmentBudget Rehabilitation 750 880 820 320 680 680 730 2,280 Small and medium scale development 2,730 4,470 4,400 4,600 4,370 3,020 2,100 4,500 Subtotal 3.480 5,350 5.220 4,920 5.050 3,700 2.830 6.780 Areasdeveloped (ha): Smallscale 6,500 2,300 1.000 1,100 2,200 2,100 1,800 2,000 Nediumscale 800 1,200 700 500 500 700 600 700 Tertiarydevelopment 1,800 22,400 16,600 15,900 8,200 11,400 7,200 6,700

Subtotal 9,100 25,900 18,300 17.500 10,900 14,200 9.600 9,400

/a ExcludingJatiluhur area. i l3 _S _*A Imm 1M0116 I=

U"~~~~~~~~~~~o*r at I_ hsu,

E3a~~~ah b~~ gig. (ha) 931.6.4ttmw fshin suu (6.3

_^~~~~~~s mIa w e _ 1 6s blla?al~~~~~ 3*r b_ 236 ^"tRU _n . s_ *~~~~~~~~Ple~* Fel?roo_ U..L21*1t "~~CLtuftII binle 36 Chou OMIe 1.66 ha) lGo ^1~~~~~~~~~4 mbmmn Disase r.afts Elam6 Sh blanU bs .66hl I. SmKr Fud.iib u faru s 2o66 hau Le FullaminE 160~~~~~~~n lg?I6h0 Moaimmam L24aun 33m ~~~~~~~~~~~"~~~~~~~LM1.616ne 5pm. 71010 socow 140 Ls"h 146_ Shamlab 1o6 33I1Ms. Do 70 "Ibu*urlu OP e241brm 36N COMOes_ .e0M 3de7e_ _. bl U. bEaus ~~~~~1.176PrLem Sinabk utalu 1.om6 be) 406 soft spbf Jtulblek 26 ShavMoinomr_n6 bula 1 A.e1116N> bajal In Shaumm..U1 (Taut 3.100 be) 3.430 _r au u6 etlma In I3 blaa 266 e* (Tad 1.370 ba) 538 ull . _s ee Cu Sad 246 bpui _li ¶ZWg _ Sa 130 .gkalmau F._t316 Sialma Ito Fugall aa U 416A gmam 3 446 _-b lr 626 bbataI 7.7D

1909/90 vmt~~bam 406 gwabA 1ali_mul U51 280 bAringbum vtm 766 br Ige 130 Full*u 136 7e h.u z1o Fgammg MOOREba 3e a*a 3li fttl GOODS 1.2c*ea e80 _toua ar9 _~~~aga_C I Slam 280320_Il _=a- 2"M _ 0 FufRIde 1.6 SMer M

limiga SguL 666 IlbakS~~~~~~MMmm 616ha Soo3 Fualsgg 2agZ aa 7M bm ba .6 a .0 bAAcma "13 abuhamb-h Un ears 21100 IN" two 3" nophIg cvmrsIg BIG 410

n 5151lb" Aval 74y SIam p xiCA"S44h) 6'

VA16a, t 23.00 Cipmbb 340 balom .11,"r.iufI 26 UhahaUse 116 TMIimami GowbAu.m24 amin we t40 ;~~~~~~~~~~~~~~~~~C-k spaces>tDpD to0 gwo-r 2M 0 Total MON 1~ ~~~ ~~~~~~~~~~~hnaIIC J!I2 4.16 ha 1~~~(gaeiUD60.5

2.WD~ ~ ~~~haa LI(Ii346 a .6

CN 1 40

21D

cam" I in bgur MUd'd 626 C516Pmbatlm _al 266 ual SAVI 21|

Csim 360 bo w 370 2W CD-mn rbaln LAW Frlauu SLmn I 37S1 Sings 2 D 400 SbaMN= I (blua 46.1l6 ha) M6 b_S_ ml C10IS OCD~21040

bguiulum aftar 1693 25.6006 ANNEX2 - 66 - Table9

INDONESIA

CZNTRALAND WEST JAVA PROVINCIALIRRrGATiOm zEVELOPMENTPROJEZT

Central and Went Java Provincial Component

List of Proposed Small-Scale Scbemee (Central Java)

Net Net irrigable irrigable Wilayah Scheme area (ha) Wilayah Scheme area (ha)

1986/87 Program 1989/90 Program Pekalongan Pemali Atas 1 (7) 690 Semarang Tuntang Jelok (3) 200 Lojanhan Simms (4) 460 Pati Lebur Blevah (3) 260 Kupang Sumilir (4) 240 Pesentran Kletak (4) 340 Boyo Mata Air 110 Pencurep (7) 560 [edu Semawang Jaabretan (4) 300 Subtotal 1.500 Druji (4) 240 Tangal Loro (6) 460 1987/88 Program Pekalongan Sang Karang-Wela Sirajang (2) 230 Semarang Kurang Necanan 60 Boyo Kitiran (2) 250 Singaleh (3) 260 R_abut )bkogeni (3) 260 Pareng Sareh (4) 320 Surakarta hebunBaran (2) 190 Pati Semen (2) 220 Krisak 140 Kancilan Sarang (3) 280 K. [rese 110 Mungulan (5) 400 Cembong (7) 900 Kedu Maingli 150 Siwatu 60 Ampu 90 Pacartalu(2) 200 Subtotal 4.500 Ja.i Hulu 110 Petir 90 1990/91Program Progo Elo Crabag (6) 570 Semarang Sijurung Buntong (2) 140 Progo Elo Sono (4) 250 Patl Thngg.l Hllir (5) 460 Pekalongan Lojahan Simas II (3) 220 Tunggul Hulu (3) 200 Pemali Atas III (3) 370 Kali Jambi; Sipirang-WatuBaco (6) 420 Femali Atas IV (2) 200 edu 'KaliJambi; Sililin-AjiPlumbon (5) 500 Rambut Tandun-merang(2) 330 Progo Hulu (5) 550 Genteng Sera (3) 380 Peckalongan Gung Erang Ulumbeng(2) 330 Buyo Tinap (2) 250 Subtotal 4.500 Surakarta Gembong (2) 180 Sawar Gemolong 90 1988/89Program Sragen Sodagan 120 Semarang Sikupang 70 8ola Kambang 90 sigayam 50 Kapal [rapyak 70 Legi Muncar (2) 130 K. Cede (2) 220 Seringas (3) 180 K. Larangan (3) 380 Pati Clundung 50 Karang Winong 80 Subtotal 4.000 Peji Tengah 80 Sumber Sang Krau 110 Total Central Java Celts Nguwok (4) 330 Under project 20,000 Balerama 110 Remainingafter 1991 63,000 Gandu Dlingo (2) 250 Tirtu Kelir (7) 600 Total 83.000 Kumisik (2) 270 Kedu Jeruk 70 Loning Kanci 60 Timbang 60 K. Kuas (3) 240 Kodil (4) 360 Pabelan Senowo (3) 320 Blongkeng(3) 190 Bogowantu Rodil (4) 320 Pekalongan Sragi Cutomo (2) 180 Sang Karang-Blimbing (3) 370 SauibungEmbun 200 Malahayu 200 Surakarta Karang Asem 100 Mandan (2) 220 Pucung (2) 300

Subtotal 5.500

Note: In the case of multiple diversionweirs, the number is given in parentheses. -5b7 - TIA2

CENTRALAND MIS? JAVA PROVINCTALlRRtIATlOl WtoWLnPftM pmUoCr

Central and Went Java Provincial Component

Lstt of Proposed hall-ScaIle Rhama. (West Java)

Nat Net Irriable 1 rrtgable Vilayab Schew area (ha) VIlapab.h Seha area (ha)

1936h/57 Program u q1OaProRran BaEate" Clnungtung 330 Rantan 5450 Cipgnduag So Ctka rang Tangab 400 Bogor Sttubala 110 Ctkuraten 610 Ct jmbu . 150 Cisnjur 140 Ctpaarangan llO Ct1aralanr U0 Priansan Cit lupupang 290 Sotor branj 4n£ Ctsedara Isn Cilrarang 15O Iletk Nuncang 220 Cilgeng 1nn Cirbaon C1gonk 70 Junghtl 150 Cilutung I 10n Rtwaktlonj mn Ctiliau 111 160 Jayawebr 200 Cijaoban 120 Ctlebakelub 3In CtptcnSg R 1no Subtotal 2.000 Cihujung io0 Priansge Cika-irl 1T 3no0 1937/B8 Program C isyana 120 lenten Katapsngt 200 Cpasteni 6K0 Ci.rsa 120 taranggentunmau 30n Ctenograng 1l0 Ctmapan/rTabakhurtp UO Cirangkong 170 Ctrebon Claling rYt Z20 Ctran _kogMuir 200 Cfiadak 410 C5kiray 230 Cipaingan 240 Cfitdeun 410 Cipeancur 1I l2O Soptor Cdanpdwur via Sereng 110 Sttutile SRo C *Brut 110 Telnk Pimnag 140 ;astrbirn 100 Sipak 200 Cisbahng Im Cibeat 1iO Ciherang 60 CI)ambu I 10 Cilodus Ion Raw leonl 2mo Ctalak 60 Ciraundeu 200 Kondann ITT 1JtO Cibarengkok 310n Clsat 170 Prlangan Ctugur 150 Cibi tong an Cidadap 630 CiRmuong 6n Cekrabuana T 610 Ct-sda 350 Subtotal R.nm Jnja.y 400 Citeurtb 300 199/921 Progrm Citrebon Cikamnening 15t) anten Cirarab 150 Cikn-sarunR 140 4Chatuhideung 150 Pahrkanklara 11n Cibulik 150 Class Porta IPA Roor Cikantek 310 Ci1nmpth 13n Prtanwan Ctksso s50 CLreborn Cikeuetk 250 Subtotal finO J_sburays 60 Cipasir 40 19RSII9 Program Aetena 710 Banten Cipaseb 34n Nedang 19n Cthereng IS0 Kinastlah Igo Cttareng RBlr 200 Cipicung 120 Cilosreng 4nn Mang 120 Ctkalong An0 Citeuromp 42n Cttapen/CitunrRa 23n SituhideunR 220 Bogor Teluk Pinang iso Verpe 190 Ciharengkok Lalqy 20 Caribting V 170 MandorengXI 20n Ctlatsp 170 Senda A4n Ctlangtkp ITI 160 Clharenpjtok 10o Clued 150 Cihujuns 410 Cleuncent inn Clpastutan 260 Cilutung 1S Citajur 400 Leuwigenl 70 PriAnpan Rancabunaa 420 Ckerebek TT 70 Ctbeureus 3s0 c1 jaun 60 Clbodma 200 Clhetue 60 Cl bebeyu 310 Cm lung sn Cirebon Jagakerts 170 Classt T so Cileuys 2m1n Arkilen so Pentil 320 Indraseyn Carah Jero 33n Ct jmbur 220 Cigerugn [1n Subtotal 5.01! Satu Jenokie 2qn NegroR 610t Total Weat J-aw Sinapenl IIO Under orolect 30.700 Citlengkrang 11 Igo0 RemtainIt after 1991 7.3nn Sahegi LOP Ciludut 460 Total 3R.0W Cipamnter 160 Clutung IT 4n Ci:4_htr 70 ClIlem 46*o

Subtotal 9.000

Note: Area rlarger than 2nn ha aro served b7 multiple sttr . ANNEX 2

- 68 -

INDONESIA

CENTRAL AND WEST JAVA PROVINCIAL IRRIGATION DEVELOPKENTPROJECT

Central and West Java Provliclal Component

List of Proposed Iedius-Scale Schemee

Province Status of Type of Area of development (ha) & vilayah Schere construction diversion 1986/87 1987/88 1988189 1989/90 1990/91 Total

Central Java Surakarta B pang Ongoing Wear 300 800 1,000 1,000 - 3,100 Wd. Ilego Ongoing Reservoir 200 SOO 900 - - 1,600 Pati Kedung Waru Ongoing Weir 200 500 700 - - 1,400 Wd. Randugunting Reservolr - - - 650 800 1,450 Semarang Mendut Welr SOO 650 - - - 1,150 Bandung Weirs (3) - - - 400 600 1,000 Jetis Weir - - - - 400 400 Bkny m* Situatirtonerto Weirr (2) - - 500 700 - 1,200 Kabagoran - - - 400 400 800 Serang Welr - - 300 500 - 800 Pekalongan Lengkong Welr - - 350 300 650 Nedani Welr - - 300 650 - 950 Cibagonjing-CLkarut Welr - - - 500 500

Subtotal 1.200 2.450 3,700 4.650 3.000 i5.000

Remaining for development after 1991 5,000

Total Nedlu-Scale 20.000

West Java Bogor Tojong Ponto Ongoing Welr 300 200 - - - 500 Cinandiri Ongoing Weir - 500 1.300 - - 1,800 Cikaso/Cibuni Weir (14) - - 300 2,000 1,200 3,500 Priangan Ihroko Ongoing Velr 200 400 400 - - 1,000 crungung Narjan Ongoing Welr 200 500 500 600 - 1,800

Subtotal 700 1.600 2.500 2,600 1.200 8.600

Reawining for development after 1991 5,400

Total Nedlun-Scale 14,000 ANNEX 2 Table 12

- 69 -

INDONESIA

CENTRAL AND WEST JAVA PROVINCIAL IRRIGATION DEVELOPMENTPROJECT

Central and West Java Provincial Coponent

List of On-the-job Tralning Progr_as level of *taff covered lkjor subject matter covered Period of traLning & trainers

Project *taff training (pro- Project co ponenta' ldentificatlon Two weeks' intensive course vincial-level and higher-level Priority ranking criteria, Inspec- and staff attached to consul- staff of Wilayah) tion and ranking of schemes tants team for two to three Packaging of design and construction months on rotation basis wiorks Preparing terms of reference for local consultants Preparing tender documents and specifications Supervision of consultant works Preparation of progress and other reports Procedures for estlmating, budgeting. tendering and disbursements Nonitoring design progres and overall lmplementation

Operation and maintenance Accurate collectlon of discharge, One-veek course for each sec- staff (Wilayah- and Seksi- rainfall and crop area tion; one week for Juru-level level staff) Processing and analysis of data staff by Wilayah team of 3 Planning, allocating and controlling trainers water distribution Panning and implementing routine preventive maintenance Understanding of Interdependence of water supply and crop production

Construction supervision staff Work specifications, equipment and Nwo-day intensiw- -ourse each (Provincial- and Seksi-level tools week for six weeks by Wilayab construction supervisors) Staking out and survey procedures team of 2 trainers Earthwork, compaction and basic tests Concrete and masonry work, quality control Measurements of works, preparation of bills Monitoring of progress and implementation schedule

Water management at tertiary Establishing effective Water Users Croup A - three services level (Group A - Seksl and Associations middle-level staff for one sub-Seksi level; Group B - Operation and maintenance of terti- day quarterly field level; Croup C - leading ary networks Group B - Field level; Juru farmers and WUA committee) Functions and responsibilities of pangamat, PPL, village chief Water Users Associations for 4 days quarterly Agriculture and crop water require- Group C - WUAs committee lead- maents Ing farmers for 6 days quar- Vlllage cooperatives terly Tertiary network construction Wilayah multidisciplinary team LUsting of farmers groups of 3 representing each of Training of Jurus and ulu ulus three services CTWRUALAMi WST JAVA '?dIRfIlCIAL IhRICATlON DVyTAWZIII4 P3s)JP.C

rentraland lesatJava Provincialrouponent

VehiclesUeguir.u.iit

Central Java West Java ~Otal & VD0 Service Micro- Ilotom- A 110 Rarvice Hicro- Ifotor- 4 111 varvice 141cr.-Motor- vehicles vehicles bus cycles Bicycles vehicles vehicles bus eyclec IicMyclesvehicles vehiclas bus cyclea Uteycles

Frv'elLevel .OnGeralAndad.iniatrative I I 1 4 -2 I I 2 5- Surveys,design and construction 12 4 A - - 20 10n - - 0&14 ad treIning I 2 1 1 4 - A 2 A

subtotal 111 12 ? A - 1 A 2 - 3 10A S

:l:la::h Level 1 CenatI andeinistrative S- - i - - In0 Surveys, design and censtruttion S - 12 - '1 15 -10) 10 - 27 I0 10 20 0 ANand tretning - 3 in - % S in) - -

Sutbtatal 1in0 27 - I0 10) M02 201 10 37-

Stiadn ubsectionLevel 4 i -5 adainiatrative - - - 12 -- ~~ ~~-- 23 ~~~~- Ceneraland ~ ~ ~~~ ~~ so9 too Surveys, design and construction - 27 - ¶0 so 1 S - 4*1 40 1,214 0 & M and '.raininS 27 - 221 410 -12 its1 Am- 16 240 -140-7 subtotal - I - 175 732 - 2 - 141 47_5 - 76- 51*,

Total Reputruent 24 74 7 220 712 22 43 7 26* 671 so t19 1A A0 1j.407

Curetl vailahle in SarvtceableConditf on PoInceleel 1* - 9 A 1 27 AI 2 ,,l,yah le,vel 1 - 33 1 1 - I& - A 17 - 16 13 Section en,i Subsectinn level - 2.3 - 12 - 25 - fis - -50 - 77 In Total Available-in Servicea-ble Condition 21 52 - IR 51 12 39 1 RI - is1 71 1 101 '11

To be Procured I I Fr-ovincilsIl1vel - 12 2 2 -1 4 1 I-314 Ililayah level I 1I 27 -7 - S 16 -12 In1 AS3 Section and subsection level - 26 - 14 4* - - - 65 473 - 29 261 1,156f

subtotal 44 7 192 gal 10 4 4 11.s 47l5 13 43 I 107 1.336 schedule of Procurement Deliverybefore 09/30/84 3 14 1 6 310 A 4 2 '1n I'm 7 20 140 MI) Deliverybefore WINN/8 2 2* 4 M0 15I A - 4 65 343 A 25 A 167 664

Subtotal 1 44 7 192 651 In) A A jl 471 is 43 II 3017 IjII INDON88U

C8NTRALAND WEST JAVA PROVINCIAL IRRIGATION DEVEWPHENT PROJECT

IPEDAYNppina and keelasstficationCompoent

Areasof Various Sbsteos (ha)

OemtralJava Tbtal JratuaaelunaArea Pemall- Gambarsarl- West Java both (Tuntang-Jragung)Coal Peeanggraban Subtotal Sue dang CLrab.. haetang Cicada CiuJung Subtotal provinces

Net irrilable area 43,000 85,000 23,000 151,000 23,000 88,000 90,000 34,000 33,000 268.000 419,000

Gross area 75,000 116,000 60,000 251,000 73,000 123,000 115,000 50,000 57,000 418,000 669,000 Estiuated Area Rlauiring Various Tigg Wohrk Aerlilphotography (scale 110,000) - 140,000 70,000 210,000 - 150,000 135,000 60,000 70,000 415,000 613,000 REctfiLedphoto map (scale1:5,000) - 130,000 65,000 195,000 - 136,000 129,000 58,000 63,000 386,000 581,000 Villagamap (scale1:5,000) 81,500 125,000 62,500 269,000 81,500 134,500 125,000 56,000 63,000 460,000 729,000 Plots maps (Rincican map) (scale 1:2,500) 47,000 87,000 25,000 159,000 28,000 92,000 94,000 36,000 34,000 284,000 443,000 Fieldsurveys of plot boundaries 43,000 85,000 23,000 151,000 23,000 88,000 90,000 34,000 33,000 268,000 419,000 Reclassiftcation 75,000 116,000 60,000 251.000 73,000 123,000 115,000 50,000 57,000 418,000 669,0p0 Reassesaeat 75,000 116,000 60,000 251,000 73,000 123,000 115,000 30,000 57,000 418,000 669,000 I!! INDONESIA CENTRALAND WESTJAVA PROVINCIAL IRRIGATION DRVFLOPHENT PROJRCT

Key Indicators

Completionsuantity and pereentage -PY"6/7 nt;7"1M nn89 9 nnssV R sls n91 Activity Ouantity U1nit nty X nty nty 1E X !Et TX tg X

ProvincialIrrigation Development Deslgn-LocalCon_ultants RehabilltatCon 45,000 ha 10,nno 22 25,000 56 10,000 22 ------Small-scale 25,no0 ha 10,000 40 12,noo 48 3,000 12 Medium-scale 17,000 ha 6,000 35 7,000 41 4,000 24 ------Upgrading 50,000 ha 15,000 30 35,000 70 ------Construction Rebabilitation(2 contractsICR) 9,000 ha - - 1,400 15 2,500 2A 4,600 51 500 6 _ _ Rehabilitation(LCR) 51,000 ha 4,500 9 12,100 24 15,000 29 9,900 20 9 500 18 - - Small-scale so,700 ha 3,500 7 11 200 22 14 500 2R 12 500 25 9,000 18 - - I'ediuu-scale(4 contractstCR) 6,100 ha - - 1,300 21 2,300 38 1,700 28 800 13 - - Medium-scale(LCR) 17,300 ha I,qon ll 2,80 '16 3,9qo 22 5,5no 31 3,400 20 - - Upgrading 55,00o hz 10,000 18 20,000 36 25,000 46 ------Office& housing 23,700 m 5n0 2 8,noo 34 8,000 34 7,200 30 - - - - IPEDA,Surveys & Reassessment map lng G surveyworK 581,000 ha 60,000 10 280,000 4R 241,n0o 42 ------Reclassification 670,000 ha - - 100,OOn 15 220,n0o 33 3no,000 45 50,000 7 - - Reassessment 670,noo ha - - - - 150,noo 22 100,0oo 45 220,000 33 - - . TechnicalAssistance & Traintng Trainingand coord.consultancy lot - - ln - 32 - 27 - 17 - 7 - 7 On-the-jobtraining lot - 11 - 28 - 26 - 20 _ 10 - 5 DunnilSubprojec t and Studies

DLversiondam (ICR) contract I - in - 40 - 35 - 15 - _ _ _ UJpstream-rightmain & seconcanal. (ICR) contract 1 15 - 35 - 3n - 20 - - - Downstrea._-rightmain & seconcanals (ICR) contract 1 - - - 15 - 35 - 30 - 20 - - Leftmain 6 secondcanals (ICR) contract I - 1n - 35 - 35 - 2n - - - - Drainageworks (LCR) 2,000 ha ------1,000 50 1,000 50 - - Tertiarydevelopment (LCR) 11,300 ha - - - - 3,300 29 5,000 44 3,000 27 - _ TechnicalAssistance & Studd Design- Drainageworas 2, 00 ha - - - - 2,000100 - _ _ _ _ _ Design- Tertiaries 11,300 ha - - 3,000 27 5,000 44 1,300 29 - - - - Constructionsupervision lot 6 -I40 - 33 ,3- - 9 - 9 3 Bongo Area Studies& detaileddesign lot 16 - 56 - 26 - 2 - - - - flolok-Penggaron drainage design,Tuntang-Jraxung area studiesand design lot 1O - 36 - 35 - 15 ..- .~~~~'H2 - 2 1Hr MINE 3 Table 1 - 73 -

CENTRALAMD WEST JAVA PROVINCIAL rR!GATIAII DEVELOPMENT PROJCT

MNaor Food Crons In Centraland West Java (1981/82)

CentzalJava West Java /a Net area Average Net area Average harvested Production yield harvested Productlon yield ('000 ha) ('000 tons) (tons/ha) ('000 ha) ('000 tons) (tone/ha)

Wetland rice /b 1,277 6,276 4.9 1,264 5,315 4.2 Dryland rice /b 38 109 2.9 87 161 1.9 Malze 304 499 1.6 49 78 1.6 Soybean 83 66 0.8 23 16 0.7 Groundmuts 91 75 0.8 56 S0 0.9 Swet potatons 24 177 7.4 32 279 8.6 Cusava 282 2,778 9.8 165 1,833 11.1

/a R-cludes Jatilubur Authority Area. /b Rice productlon given in dry unhuaked grain. Source: Provincial Agricultural Offices in Semarang and Bandung. INDONESIA CENTRALAND WEST JAVA PROVINCIALIRRIGATION DEVELOPMENT PROJECT

Central Java Province Crop Areas.Yield per ha and Total Productionfor Small and Medium Scale IrrisationScheme

Present situation Future withoutproject Futurewith prolect Area Yiela Production Area Yleld Production Area th) YTield Prod'n MtOWS[ (ha) (tons/ha) (tons) (ha) (tons/ha) (tons) Small Nedimu (tons/ha) S ll Medium scale scale scale scale

Wet Season RIce CHW ) 35,000 4.0 140,000 35,000 4.4 154,000 20,000 15,000 5.0 100,000 75,000 Dry Season1 Rice CRYV) 14,000 3.6 50,400 14,000 4.0 56,000 14,000 14,250 4.8 67,200 68,400 Maize 8,750 1.2 10,500 8,750 1.4 12,250 3,000 - 2.5 7,500 - Groundnut 8,750 0.6 5,250 8,750 1.0 8,750 3,000 750 1.2 3,600 900 Subtotal 31,31,5,00 20000 15f000 Dry Season2 Maize - - - 4,500 2.5 - 11,250 I Groundnut - - 3,750 1.2 - .4,500 Subtotal - 8.250 Total 66.500 66.500 40,000 38.250 Cron intensity (Y) 190 190 200 255 IncrementalProduction (tons) Withoutprolect With prolect Rice 19,600 10o,600 Maize 1,750 6,500 Groundnut 3,500 250 __.. _..~~" _. INDONESIA

CENTRAL AND WEST JAVA PROVINCIAL IRRIGATION DEVELOPM8NTPROJECT

West Java Province Crog Areas. Yield per ha and Total Production for Small and T4edlumScale IrriRation Schemes

Present situation Future without crolect __Future with vroiect Area Yield Productlon Area Yield Production Ares__ha) Yield Prodyn Atons) (ha) (tons/ha) (tons) (ha) (tons/ha) ttons) 9malI xeldrum (tons/ha) soaiit maim scale scale scale scale

Wet Season Rice tH1V) 11,800 4.0 47,200 15,700 4.4 69,080 21,500 6,900 5.0 107,500 34,5OO Rice local (R v) 9,800 3.4 33,320 7,850 3.5 27,475 4,600 850 4.0 18,400 3,400 Rice local 9,800 2.0 19,600 7,850 2.0 15,700 4,600 850 2.0 9,200 1,700 Groundnut 2,000 0.8 1,600 2,000 1.0 2,000 - - - - - Cassava 5,900 10.0 59,000 5,900 12.0 70,800 - - - - - Subtotal 39.300 39,300 30.700 8.600 Dry Season Rice uio) 9,800 3.6 35,280 11,800 4.0 47,200 12,300 6,000 4.8 59,040 28,800 Rice local (RYV) ------3,000 - 3.5 10,00 - Rice local 5,900 2.0 11,800 3,900 2.0 7,800 - - - - - Groundnut ------9,200 2,600 1.2 11,040 3,120 Subtotal 15.700 1S.700 24.500 8.600

Total 55.000 55.000 55.200 17.200 Cron Intensity (1) 140 140 180 200 Incremental Productlon (tons) Without project With ero ect

Rice 20,055 105,785 Groundnut 400 12,160 Cassava 11,800 - ..~E_ INDONESIA CENTRALAND WEST JAVA PROVINCIAL IRRIGATION DEVELOPMENT PROJECT

Central and West Java Province Crop Areas,Yield per ha and Total Production for Systems to be Rehabilitated

Present situation Futurewithout proiect Futurewith prolect Area Yield Production Area Yield Production Area Yield Production (ha) (tons/ha) (tons) (ha) (tons/ha) (tons) (ha) (tons/ha) (tons)

Central Java Wet Season Rice MRYV) 25,000 4.5 112,500 25,000 4.6 115,000 25,000 5.0 125,000

Drv Season Rice klYV) 12,500 4.4 55,000 10,000 4.5 45,000 17,500 4.8 R4,000 Subtotal 37.500 167,500 35.000 160.000 42.5no 209,000

Crop intensity 0 (%) 150 140 170 West Java Wet Season Rice (RYV) 35,000 4.5 157,500 35t000 4.6 161,000 35,000 5.0 175,000 Dry Season Rice tHYV) 17,500 4.4 77,000 14,000 4.5 63,000 24,500 4.8 117,600 Subtotal 52.500 234.500 49.000 224,000 59.5n0 292,600 Cro Intensity 1 () 150 140 170

IncrementalRice Production(tons) Withoutprolect With proJect CentralJava (-7,500) 49,000 West Java , (-10,500) ,-~~~~~~~~~~~~~~~~~~~l68,600 ; ' r l h~~~~~~~~~~~~IDUBI

CENTRALAND WEST JAVA PROVINCIALIRRIGATIOK DMVHLOPMENT PROJECT

Duupilt Crop Areas and fTeldper ha

Present situation Future withoutproject Futurewith project jrlxated Ralared rIgatea Raei-ed Irria ted mSisfed Area -tleid -Wea 'field Area, Yleld Area Yileld Area Tleld Area '10dd (ha) (tons/ha) (ha) (tons/ha) (ha) (tons/ha) (ha) (tons/ha) (ha) (tons/ha) (ha) (tons/ha)

Vet Season 1 Nice (gmY 485 3.3 250 2.80 485 3.4 250 2.90 485 5.0 250 2.90 Maize - - 2,260 0.70 - - 2,260 0.75 - - 2,120 0.75 Soybeans - - 5,455 0.50 - - 5,455 0.55 - - 5,115 0.55 Hung beans - - 440 0.45 - - 440 0.50 - - 410 0.50 Groundnuts - - 2,910 0.50 - - 2,910 0.55 - - 2,730 0.55 Minor crops - - 200 - - - 200 - - - 190 - I Subtotal 485 11.515 485 11,515 485 10.815 Wet Season2 Rlce (HYV} 685 3.2 11,315 2.70 685 3.3 11,315 2.80 11,300 5.0 - - Dry Season WaTze- - - 220 0.70 - - 220 0.75 2,000 2.2 - - Soybeans ------3,300 1.2 - - Mung beans - - 670 0.45 - - 670 0.50 520 1.0 - - Groundnuts ------2,430 1.0 - - Tobacco - - 310 0.50 - - 310 0.55 - - 300 0.55 Minor crops - - 150 - - - ISO - - - - -

Subtotal - 11350 - 1,350 300 Fallow - 10,650 - - - 2,750 Total 1,170 34,830 1.170 34,830 20,035 13.865 Crop intensity (%) 10 202 10 202 177 98 'I. ANNE[ 3 Table 6 - 78 -

INDONSIA

CENTRALAND WEST JAVA PROVINCIAL IRnIGATION DEVELOPMEWTPROJECT

Duapli: Total Crop Production (tons)

Present situation Future without project Future with project Irrigated Rainfed Total Irrigated Ralnfed Total Irrigated Rainuid Total

Wet Season 1 Rice (RYV) 1,600 700 2,300 1,649 725 2,374 2,425 725 3,150 Malze - 1,582 1,582 - 1,695 1,695 - 1,590 1,590 Soybeans - 2,728 2,728 - 3,000 3,000 - 2,813 2,813 Mung beans - 198 198 - 220 220 - 205 205 Groundauts - 1,455 1,455 - 1,600 1,600 - 1,501 1,501 Minorcrops ------

Vet Season 2 Rice (Nw) 2,192 30,550 32,742 2,260 31,682 33,942 56,500 - 56,500

Dry Season Maize - 154 154 - 165 165 4,400 - 4,400 Soybeans ------3,960 - 3,960 Hung beaus - 301 301 - 335 335 520 - 520 Groundnuts ------2,430 - 2,430 Tobacco - 155 155 - 170 170 - 300 165

Increuntal Production Without prolect With prolect

Rice 1,274 23,334 Maize 124 4,130 Soybeans 272 3,773 Mung beans 56 170 Groundnuts 145 2,331 ANNEX3 79 - Table 7

INDONESIA

CENTRALAND WEST JAVA PROVINCIAL IRRICATION DEVELOPKENTPROJECT

Price Structure for Agricultural Output (Constant 1985 currency values)

Operation 1985 1986 1990 1995

Rice Export price, Thai 5% broken, FOB Bangkok, US$/ton /a 235 238 346 334 Quallty adjustment /b 902 211 214 311 300 Freight and insurance + 30 30 30 30 CIF price, Jakarta - 241 244 341 330 Port handling, storage, losses /c + 12 12 12 12 Transport, port to wholesaler + 3 3 3 3 Transport, mill to wholesaler - 2 2 2 2 Ex-mill price - 254 257 354 343 Conversion to paddy 65S 165 167 230 223 MLlling cost /d - 6 6 6 6 Transport, farm to mill - 10 10 10 10 Economic farm-gate price, US$/ton - 149 151 214 207 Economic farm-gate price, Rp/kg /e 164 166 235 228 Financial farm-gate price, Rp/kg7& 138 150 165 180

maize Export price, FOB US Gulf Port, US$/ton /a 126 121 115 115 Freight and insurance + 20 20 20 20 CIF Jakarta /f - 146 141 135 135 Port handling and storage + 4 4 4 4 Transport, port to wholesaler + 6 6 6 6 Transport, farm to wholesaler - 10 10 10 10 Economic farm-gate price. USS/ton - 146 141 135 135 Economic farm-gate price, Rp/kg /e 161 155 149 149 Financialfarm-gate price, Rp/kg7tf 130 130 130 130

Groundnuts Export price, CIF Europe, US$/ton Ia 859 798 666 652 Freight and insurance, Europe port to Jakarta + 25 25 25 25 CIF Jakarta - 884 823 691 677 Port handling and storage + 2 2 2 2 Bagging + 3 3 3 3 Transport, port to wholesaler + 5 5 5 5 Transport, farm to wholesaler - 10 10 10 10 Economic farm-gate prlce, US$/ton - 884 823 691 677 Economic farm-gate price, Rp/kg /e 972 905 760 745 Financial farm-gate price, Rp/kg 980 980 980 980

/a All world prices are based on Bank projections (January 1985) with adjustment to 1985 constant dollars by an MUV index of 102.0 for 1985. /b 90Z of world price based on spot checks, regression and taking into accounts humidity and impurity contents. See paper IBRD/AEPIA 1979. /c Includes port costs, transport to warehouse, spraying and fumigation, unloading, warehouse rents. Losses are 0.5Z at unloading and 1.0Z at the warehouse. /d Net of value of by-products and includes milling/storagelosses incurred by miller and handling charges. /e Exchange rate of Rp 1,100 - US$1.00 7T Assuming Indonesia is a net importer of maize. 7gi Average price paid by Bulog for the 1985/86 season and corresponding to dry gabbah with an humidity content of 22Z and an Impurity content of 8%. Prices paid by Bulog vary on scale from Rp 102.33/kg to Rp 175.00 according to humidity and impurity content. - - 8 ANNEXAM=K 3 so - iurr

INDUESIA

CUINEL AND WEST JAVA PEOMVICIAL II2CATDo DEVELONINUTP1.JECT

Prlce Structure for Agricultural Inputs (1983 eurrency valuee)

Operation 1985 1986 1990 1995

Urea - 46Z N World export price, FOB Europe, US$/ton 190 200 255 265 Eu-factory price, Palembang /a 205 215 270 280 Randling and distributlon to retail level + 11 11 11 11 (Semarang & Jandung) Storage and transfer to farm + 29 29 29 29 Economic farm-gate price, US$/ton - 245 255 310 320 Economic farm-gate price, *tp/kg / 270 281 341 352 (Financialfarm-gate price,Rp/Jg 100 110 130 ISO

TSP - 46% P,05 World ezport price, FOB Florida, US$/ton 150 158 173 169 Freight and insurance to Jakarta + 60 60 60 60 Handling and distribution to retail level 1 22 22 22 22 Storage and transfer to farm + 4 4 4 4 Economie farm-gate price, US$/ton - 236 244 259 255 Economic farm-gate price, Up/kg /b 260 268 285 281 (Financial farm-gate price, Up/kiT 100 110 130 180

Insecticides Economic farm-gate price, US$/liter 10 10 10 10 Economic farm-gate price, Rp/liter /b 11,000 11,000 11,000 11,000 (Financial farm-gate price, Rp/liteW 1,500 1,500 1,500 1,500

Rodenticide - Zinc Pbomphate Economic farm-gate price, US$/ton 5 5 5 5 Economic farm-gate price, Rp/kg /b 5,500 5,500 5,500 5,500 (Financial farm-gate price, Rp/k ST 2,100 2,100 2,100 2,100

Purchased Seeds Rice Economic farm-gate price, US$/ton 164 166 236 228 Economic farm-gate price, Rp/kg /b 180 183 260 251 (Financial farm-gate price, Rp/kg 350 350 350 350 maize Economic farm-gate price, US$/ton 139 136 127 127 Economic farm-gate price, Up/kg /b 153 150 140 140 (Financial farm-gate price. Rpp/kT 150 150 150 150

Peanuts Economic farm-gate price, US$/ton 976 910 765 749 Economic fare-gate price, Rp/kg /b 1,074 1,001 842 824 (Financial fars-gate price, Rp/kJsT 800 800 800 80o

Unskilled Labor /c Econooic wage, Rp/day /b 845 845 845 845 Fimaclal vage, Rp/day 1,300 1,300 1,300 1,300

/a Urea ls valued ex-PUSRI plant, Palebang. Price projections for bagged urea, FOB Europe have been adjusted to Asian markets by addlng a transport premiu of US$15/ton. /b Prices are converted st an exchange rate of Rp 1,100 - USS1OO. 7c- Sbadow wasgeratio is estimated at 65Z in the project area. INDONESIA

CENTRALAND WEST JAVAL PROVINCIAL IRRICATION DEVEWPNW! PROJECT

Sumar-y Physical Inputs ger Ra and Crou

Inuectiides Rodentlelds Aniulu Beed (kit) Urea (kit) TB (a (rlters) (kg) (teaWday) Crop WiithoutWith Without With Without With Without With Without With Without With

RainfedPaddy (LV) /a 4.5.0 4.5.0 50.0 100.0 0.0 100.0 1.0 2.0 0.0 1.0 9.5 10.5

IrrigatedPaddy (HYV)/b 30.0 30.0 175.0 200.0 90.0 100.0 i.5 2.0 1.5 2.0 9.5 - RainfedPaddy (RYV) 30.0 30.0 175.0 175.0 90.0 90.0 1.5 1.5 1.5 1.5 7.5 9.0 maize .,9f~~~~~~~~~~~~~~E30. 40.0 50.0 50.0 0.0 50.0 1.0 2.0 0.0 0.0 4.0' 6.00 Soybean 35.0 35.0 0.0 0.0 50.0 50.0 2.0 2.0 0.0 0.0 4.0 7.5

Peanuts 30.0 30.0 0.0 50.0 0.0 50.0 2.0 4.0 0.0 0.0 7.0 7.5

Huagbean 25.0 25.0 0.0 50.0 40.0 50.0 2.0 4.0 0.0 0.0 4.0 7.5

/a Local.variety paddy. /b High yield variety paddy. INDONlSIA

CENIRALAND W8ST JAVA PROVINCIALIRAIGATION DEVULOPKENT PROJECT

SUPP1Yand Demand for Labor (li *an- or mwman-day)

Central Java Province Rehabilitation Wist Java Province Small-ecalesystess Hediui-ucalegymtemS All system 91-scale hetd _ hdlum-ca.le uyate- Parmstie (ha): 0.4 1.0 0.4 110 0.4 10 TX-O.4 .u 0.4 1.0 W/O W U/O W WOii W W/O V R/0 -W W/VWW07i W W/5 W W/O0 W Y/O W

supply Kbn 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0. 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 Wban 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 240.0 Dnand (Nan) Ikoagement 48.0 48.0 120.0 120.0 48.0 48.0 120.0 120.0 48.0 48.0 120.0 120.0 48.0 48.0 120.0 120.0 48.0 48.0 120.0 120.0 Tertiary work 0.0 4.8 0.0 12.0 0.0 4.8 0.0 12.0 2.4 4.8 6.0 12.0 0.0 4.8 0.0 12.0 0.0 4.8 0.0 12.0 Wet paddy 27.2 28.0 68.0 70.0 27.2 28.0 68.0 70.0 27.2 28.0 68.0 70.0 27.2 28.0 68.0 70.0 27.2 28.0 68.0 70.0 Dry paddy 10.9 19.0 27.2 47.6 10.9 2S.8 27.2 64.6 10.9 19.0 27.2 47.6 8.2 13.6 20.4 34.0 8.2 19.0 20.4 47.6 Others I Lb 3.0 1.8 7.5 4.5 3.0 3.6 7.5 9.0 1.8 1.8 4.5 4.5 1.4 1.3 3.4 3.3 1.4 1.3 3.4 3.3 Others 2 a 8.5 5.1 21.3 12.8 8.5 10.2 21.3 25.5 5.1 5.1 12.8 12.8 1.7 10.2 4.3 25.5 1.7 10.2 4.3 25.5

Total (man) 97.6 106.7 244.0 266.9 97.6 120.4 24460 301.1 95.4 106.7 238.5 266.9 86.5 105.9 216.1 264.8 86.5 111.3 216.1 278.4

Off-firm (man) 142.4 133.3 24.6 12.3 142.4 119.6 24.6 9.0 144.6 133.3 27.1 12.3 153.5 134.1 42.5 14.0 153.5 128.7 42.5 9.6 Hired (man) 0.0 0.0 28.6 39.2 0.0 0.0 28.6 70.1 0.0 0.0 25.6 39.2 0.0 0.0 18.6 38.8 0.0 0.0 18.6 48.0

Demand (VWban) Nanagement 36.0 36.0 90.0 90.0 36.0 36.0 90.0 90.0 36.0 36.0 90.0 90.0 36.0 36.0 90.0 90.0 36.0 36.0 90.0 90.0 Tertiary work 00 0.0 0.03 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Wet paddy 52.8 54.0 132.0 135.0 52.8 *4.0 132.0 135.0 52.8 54.0 132.0 135.0 42.2 54.0 105.6 135.0 42.2 54.0 105.6 135.0 Dry paddy 21.0 36.8 52.6 92.0 21.0 49.9 52.6 124.8 21.0 36.8 52.6 92.0 15.8 26.3 39.4 65.7 15.8 36.8 39.4 92.0 Others I /b 1.5 1.3 3.8 3,3 1.5 2.6 3.8 6.6 0.9 1.3 2.3 3.3 0.9 0.0 2.3 0.0 0.9 0.0 2.3 0.0 Other. 2 e 2.5 1.5 6.3 3.8 2.5 3.0 6;3 7.5 1.5 1.5 3.8 3.8 0.5 3.0 1.3 7.5 0.5 3.0 1.3 7.5

Total (wonan) 113.8 129.6 284.7 324.1 113.8 145.5 284.7 363.9 112.2 129.6 280.7 324.t 95.4 119.3 238.6 298.2 95.4 129.8 238.6 324.5

Off-farm (women) 126.2 110.4 29.6 23.7 126.2 95.5 29.6 19.A 127.8 110.4 32.1 23.7 144.6 120.7 42.8 27.7 144.6 110.2 42.8 23.4 Mired (woman) 0.0 0O. 74.3 107.8 0.0 0.0 74.3 143.7 0.0 0.0 72.6 107.8 0.0 0.0 41.4 85.9 0.0 0.0 41.4 107.9

/a All data are based on monthly requirements per crop. See project tile. 7b Maize In Central Javal groundnuts In West Java. 7j Grroundnuts in Central Javal cassava in Veat Java. lliI I-h INnoUMSIA

CENTRALAND VEST JAVA PROVINCIAL IhRRIATION DZiVT.OPhT PiOJECT

Selected Farm Rudpete- OiMer-0,.retore (1995 prtceosin 00 conotant1935 hp)

Central Jawa Province West Jexe Province Small-scale rsttlso ffediom-Ncnlesasrem Rehabilitatin _ Smal-scale system Ydiar-scale qeti_ form site (ha)l _ 0,4_1,0 0.4 1,0 0.4 1.0 0.4 1.0 0ar 0.4 1.0 (ha):W/o WON v/o vith W70 witth wtW WfO with vo with W/o WIth W/O Witb layentag Rice 432.0 601.9 1,0f0.0 1,504.8 432.0 688.3 1,060.0 1,720.q 432.0 601.9 1,080.0 1,504.8308.3 431.0 770.7 1,202.6 308.3 573.6 VAINs 770.7 1,434.1 19.2 19.5 45.5 481. 13.2 39.0 45.5 97.5 0.0 0.0 0.0 ,o0 19.6 141.1 49.0 352.8 19.6 141.1 49.0 352.3 Others 99.0 70.6 245.0 176.4 9S.0 141.1 245.0 352. o0.0 0.0 0.0 0.0 39.6 0.0 99.o 0.0 39.6 0.0 ".0 0.0 Total Waranue 549.2 692.0 1,370.3 1.730,0 548.2 868.4 1,370.5 2,171.1 432.0 601.9 1.060.0 1,504,h 367.5 622.1 918.7 1.555.4 367.5 714.7 918.7 1,7S6.9

Seeds 8.7 3.9 21.3 22.4 8.7 31.8 21.h 29.5 3.7 7.1 21.8 17,9 5.9 9.2 14.7 23.0 5.9 10.0 14.7 25.1 Inputs 34.4 95.9 45.6 114.0 34.4 54.1 65.9 13S.2 34.4 43.5 35.9 10.8 47.8 71.4 119.4 178.5 47.3 80.0 119.4 200.1 Hired labor /~ 0.0 0.0 85.4 120.9 0.0 0.0 35.4 194.5 0.0 0.0 80.5 120.9 0.0 0.0 51.0 106.1 o0. 0.0 51.0 132.6 " Total xepansea 43.1 54.5 193.1 257.3 43.1 65.9 193.1 349.2 43.1 50.6 leS.2 247.6 53.7 90.6 185.1 307.3 53.7 90.0 165.1 357.6 Income Groes 505.1 637.5 1,177.4 1.472.7 505.1 902.5 1,177.4 1,321.9 318.9 55l.3 891.1 1,257.2 313.6 541.5 733.6 1,247.6 313.6 624.7 733.6 1.429.1 IPEDAtax 4.0 12.8 16.0 42.6 4.0 14.4 16.0 48.0 6.0 12.8 20.0 42.6 4.0 11.31 16.0 39.4 4.0 Water contributlon 13.2 16.0 44.1 0.0 1.8 0.0 4.5 0.0 2.8 0.0 7.0 1.2 2.4 3.1 6.1 0.0 2.2 0.0 5.4 0.0 2.4 0.0 6.1 Net Aerie. Incom 501.1 622.9 11161.4 1.425,6 501.1 785.3 1,161.4 1,760.9 361.7 536,1 t8497 1,208.5 309.8 527.5 717.6 1,202.3 309.6 609.1 717.6 1,378.9 Off-facr Income 146.9 134.7 28.2 17.3 146.9 119,3 28.2 13.5 149.1 134.7 30.9 17.3 161.5 139.0 45.7 19.9 181.5 131.4 45.7 15.2 Total Incom 648.0 757.6 1,199.6 1,442.9 6U. 904.6 1.,189,6 1,780.4 530.8 670.8 899.6 1,225.8 471.3 666.5 763.3 1,222.7 471.3 740.5 763.3 1,394.1 Incom per capita (1984 US$) /b 130.9 153.1 240.3 291.5 130.9 182.7 240.3 ; ^.7 107.2 135.5 131.7 247.6 95.2 134.6 154.2 247.0 95.2 149.6 154.2 281.6

/e At prevailing mrket rate. heed on 4.5 per femlly, INDONESIA CENTRALAND WEST JAVA PROVINCIAL IRRIGATION DZEVKWHUII PROJCT

Overall Rate of :-turn (in milIlon of Us$ at con-t-ant 19683prices)

Veat Java province Central Java Province Soo bcl sstaaIdiimk-scale systeam Rehablit_ation baSll-scale Yasteam mdi~m-sca1e -system. bbabilitatLo. Tears left. Iot Na lnefits UEneait N oo tax ts vainafiil senefits costs &-t-i-ne-Fits lenfits Costs Ne eeft sreftst oaSt. Mt leMefIts Benefits Costs NAt lanf its

1986 0.00 0.62 -0.82 0.00 0.62 -0.62 0.00 0.60 -0.60 0.00 0.61 -0.61 1967. 0.00 1.16 -1.18 0.00 0.66 -O.". 0.07 3.36 -3.51 0.02 2.06 -2.03 0.19 3.26 -3.06 0.01 2.44 -2.43 0.03 3.61 -3.56 1966 0.43 6.70 -6.27 0.26 2.70 -2.55 0.17 4.36 -4.18 1.00 6.35 -3.15 0.23 4.17 -3.94 0.37 8.32 -7.06 0.64 5.20 -4.37 1969 1.60 7.96 -6.36 0.66 6.26 -3.57 2.71 9.25 -6.54 1.04 4.43 -3.42 3.27 11.0 -9.73 1990 4.40 7.47 -3.07 2.16 6.66 -4.70 2.60 6.26 -4.46 3.11 9.43 -4.32 2.44 4.21 -1.76 3.15 12.01 -6.66 3.95 6.63 -2.68 1991 6.93 3.47 3.46 3.59 4.54 -0.95 6.08 6.76 1.32 4.33 2.73 1.60 5.95 6.05 -2.09 1992 14.10 4.43 9.66 6.19 4.75 1.45 5.66 2.64 3.01 11.13 4.35 6.60 6.62 3.40 3.23 9.23 3.09 4.13 6.30 3.07 5.43m 1993 16.11 4.91 23.40 7.36 1.60 3.56 33.69 2.92 10.77 6.40 1.48 6.93 12.03 2.62 1994 20.36 3.10 15.46 9.41 10.30 2.92 8.37 6.29 2.67 6.42 13.35 3.02 12.33 9.32 1.32 6.00 13.73 2.83 10.91 11.30 1.99 9.52 1993 21.21 3.12 36.09 8.33 3.88 6.63 36.13 3.04 13.09 20.21 1.53 6.68 14.44 2.91 12.33 1996/2016 12.07 2.00 10.07 21.16 3.12 36.04 6.30 1.68 6.62 36.06 3.04 13.02 10.16 2.33 6.65 14.40 2.91 12.49 12.04 2.00 20.04 SEU 33.4 KUtO 20.7 KUt 27.3 511.- 30.4 RUt 19.3 EEJ, 29.6

contual Java Province VbuitJava Province 1inj Total Project Tears EoeriEto costs Not lenefits l'ieffta Costs Na6tlanei its benefits CotNot lkAnfLts Inmf its Coats Nat Usnefits

1966 0.00 2.45 -2.45 0.00 2.24 -2.24 -0.32 1.79 -2.11 -0.32 6.46 -6.60 1987 0.21 WS7 -6.34 0.28 6.90 -6.62 -0.32 6.24 -8.36 0.27 25.69 -25.72 1986 2.43 17.69 -16.26 3.60 17.91 -16.30 -0.32 13.46 -11.76 2.72 47.06 -44.34 1969 4.46 22.30 -17.64 5.00 23.47 -16.47 0.39 9.08 -6.69 9.85 34.65 -45.00 1990 9.33 22.65 -13.20 11.31 23.36 -23.87 1.40 3.63 -2.43 22.26 49.66 -27.60 1991 16.47 15.32. 0.93 20.62 26.77 3.83 3.16 2.16 1.02 40.26 34.45 3.62 1992 24.33 9.36 24.79 30.90 23.62 19.26 3.14 0.49 4.65 60.39 23.67 36.71 1993 30.72 6.02 24.70 39.36 9.63 29.73 7.47 0.62 6.65 77.55 16.27 62.26 2994 34.76 6.34 26.43 44.22 9.99 34.24 7.47 0.6. 6.65 66.43 16.94 69.31 1995 36.72 6.44 30.26 45.87 10.04 35.63 7.47 0.62 6.65 90.06 27.10 72.96 1996/2016 36.63 6.44 30.36 43.73 10.04 35.69 7.23 0.62 6.63 19.60 17.11 72.30 RJR- 23.0 nEU- 28.5 lit 32.9 KUt 24.1 !N1rONRSIA

CENTRAL ANDWEST JAVA PROVINCIALIRRIGATION DEVELOPMENTPROJECT

Cost and Rent Recovery

Central. Java Province Both Provinces West Java Province Incremental values per farm 1"all-scalesystems M!AluMrscalesysteus Rehabblitation Sll-aale nstem_ Nedlu rsc le atems (Rp'OOO at 1985 price.) 0,4 ISO 0.4 1 7in 0.4-- 1.0 n4 -. WI,(04

Cross value of production/a 143.8 359.5 320.2 800.6 169.9 424.8 254.6 636.7 347.. 88.2

Less: Cash prod, costs 11.4 64.1 22.8 156.0 7.6 91.5 26.9 122.6 35.4 172.7

Net cash income 132.4 295.4 297.4 644.6 162.3 333.3 227.7 514.1 311.8 695.5

Lesst Family labor costs /b 36.7 q1.7 64.9 162.2 43.8 109.3 55.4 138.6 69.3 173.3 Decrease in off-farm income/b 12.2 10.9 27.6 14.7 24.1 20.2 22.5 25.8 30.1 30.5 Risk allowances/c 21.6 53.9 48.0 120.1 25.5 61.7 38.2 95.5 52.1 130.2 Land taxes (IPED@Y /d 9.3 28.2 10.6 35.4 6.8 22.6 8.1 27.0 9.3 30.8 Water charges /s 1.8 4.5 2.8 7.0 0.9 2.3 2.2 5.4 2.4 6.1 Generaltaxes __ 7.2 18.0 16.M 40.0 8.5 21.2 12.7 31.8 17.4 43.4

PROJECT RENT 41.6 88.2 127.5 265.2 52.7 94.0 88.6 190.0 131.2 281.2 Rent as a 2 of net cash Income 32.9 29.8 42.9 41.1 32.5 28.2 38.9 36.9 41.9 40.4

TOTAL DIRECT CHARGES 14.2 40.5 16.5 50.2 10.8 32.7 13.4 40.2 14.8 44.7 of which: IPEDA 9.3 28.2 10.6 35.4 6.8 22.6 8.1 27.0 9.3 30.8 Water charges 1.8 4.5 2.8 7.0 0.9 2.3 2.2 5.4 2.4 6.1 Tertiary labor / R 3.1 7.8 3.1 7.8 3.1 7.8 3.1 7.8 3.1 7.8 Discountedincremental values (10%) over the project life

Project rent 308.1 622.9 901.5 1,874.6 373.3 604.2 626.2 1,342.2 921.0 1,987.6 Project charges 97.1 276.9 112.6 342.3 78.2 235.8 91.6 275.7 99.9 298.9 Project costs /h 294.7 736.6 1,126.3 2,815.7 442.4 1,106.0 298.9 747.2 1,017.2 2,542.9

DIRRCT COST RECOVRRY (2) 33 38 10 12 18 21 31 37 10 12

RENT RECOVERY INDEX (Z) 32 45 13 18 21 36 15 21 11 15

ON RECOVERY INDEX (Z) 103 118 120 146 148 179 98 117 106 127

/a See farm budget Annex 3, Table 11. 1 See Suppy and Demand for Labor, Annex 3, Table 10. 1 a& Estimatedat 152 of gross farm income. O d See IFEDA tax structureAnnex 4, Tables 3 and 4. e Equivalentto 20 kg of paddy per ha and crop. F Estlated at 5% of gross farm Income. EEquivalent to 10 man-days per ha/year priced at 652 of prevailingmarket wage. h IncludingOperation and MaintunanceExpenses of main lysteu and tertiarynetwork. ANNEX 4 Table 3

- 86 -

INDONESIA

CENMRALAND WEST JAVA PROVINCIAL IRRIGATION DEVELOPMENTPROJECT

1979 Rates of IPEDA Assessment for Rural Paddy Land by Productivity Class and Landholding Size

IPEDA assessment by size of landholding Productivi- (1) (2) (3) (4) (5) Standard ty class of <0.5 ha 0.5-1.0 ha 1.0-3.2 ha 3.0-5.0 ha >5.0 ha production paddy land (Rp/m ) - -(t/ha/yr)

1 2.54 2.96 3.38 3.80 4.22 8.00

2 2.28 2.66 3.04 3.42 3.80 7.30

3 2.03 2.37 2.71 3.05 3.38 6.60

4 1.81 2.12 2.42 2.73 3.03 6.00

5 1.60 1.87 2.14 2.41 2.68 5.40

6 1.39 1.63 1.86 2.09 2.33 4.80

7 1.21 1.42 1.62 1.82 2.02 4.30

8 1.03 1.21 1.38 1.55 1.71 3.80

9 0.85 1.00 1.14 1.28 1.43 3.30

10 0.68 0.79 0.M0 1.02 1.15 2.80

11 0.53 0.62 0.71 0.80 0.89 2.40

12 0.39 0.40 0.52 0.59 0.65 2.00

13 0.28 0.33 0.38 0.43 0.48 1.70

14 0.18 0.20 0.23 0.27 0.31 1.40

15 0.08 0.09 0.10 0.12 0.14 0.10

Note: These rates are based on a price of paddy of Rp 95/kg.

Source: Directorate of IPEDA, Ministry of Finance. ANNEU 4 Table 4 - 87 -

INDONESIA

CENTRALAND WEST JAVA PROVINCIALIRAIGTION DEVELOMENTPROJECT

IPEDA Collection

Present. (Current Rp/ba) All data in Rplha Central Java went Java 1982 1983 1984 1982 1983 1984

Assessed IPEDA /a 4,476 5,250 5,429 8,034 8,691 10,553 Collected IPEDA 3,579 4,186 4,448 2,602 3,404 4,227 Assessed agricultural IPED& /b 5,003 5,172 5,455 9,149 8,982 10,003 Cillected agriculturalIPEDA 4,059 4,717 4,897 2,319 2,807 3,064 (Collectionrate) (81.1) (91.2) (89.8) (25.3) (31.2) (30.6)

Deduction Collectionfee (lO0) 406 472 490 232 ' 281 306 Provincial government (10Z) 365 424 441 209 253 276 Regionalbanks (1OZ) 328 382 397 188 227 248

Net AgriculturalIPEDA Availableto Kabupaten 2,960 3,439 3,569 1,690 2,046 2,234

Future (constant Rplbha)

Central Java West Java 1989 /c 1993 /d 1989 /c 1993 /d

AgriculturalIPEDA /e 7,921 36,897 14,530 33,120 Collectedagricultural IPEDA If 7,129 33,207 5,086 14,904 Total deductions/g 1,932 8,999 1,378 4,039

Net Agricultural IPEDA Available to Kabupaten 5,197 24i208 3,708 10,865

Increment Over 1984 1,628 20,639 1,479 8,631

/a Representsthe average IPEDA collectedper ha in the Province. 7l Representsthe average rural IPEDA.collected per ha in the Province. 7c- Assuminga price adjustmentto a paddy price of Rp 138/kgand that 20Z of project areas have been reassessed. Id Based on 100Z of project area reclassifiedand an average land class of 1 in CentralJava and 2 in West Java. /e Based on an average farm size of 0.4 ha. /f Based on.an assumed collectionrate of 90% for CentralJava and 35% (1989) and 45Z (1993) in West Java. g Assuming no change in present system. Table S -8-

I!DOUESIA

CENTRALAND WEST JAVA PROVINCIAL IZUICATION DIEVEWPNT PROJICT

Operation and lhintenance Funding Iepact of lINDA and W.U.A. Collection on Cost bcovery /a

Avrage Average Incrental Cost OIN lISDA lb W.U.A. /c Total charges recovery recor,y collection contribtion charga over 1964 index / Index /e Year Actlon(s) to be undertaken Up/ba s -

1984 Psent sltuation /d 3,569 0 3.569 _ 4.6 14.3

1986 1. hpping of areas 3,569 0 3,569 - 4.6 14.3 2. Tralning of W.U.A. In project areas 1987 1. I1Z of the WVU.A.are assumed active 3,569 1,230 4,799 1,230 9.7 30.4 1988 1. Implementation of the lot tranche of IPEDAprlce adjustent base } 4,320 3,075 7,395 3,826 13.2 41. price In assumed to be Up 115/kg } 2. 25S of the W.U.A. are assmd active

1989 1. 202 of ares asumd reclaslfied } and reassessed I 2. implemnttion of the 2nd tranche } 8,999 4,920 13,919 10,350 19.1 68.3 of IPEDAprlce adjustment: base } prLeeis assumedto be Rp 138Jkg } 3. 401 of the W.U.A. are assumed active } 19O 1. An additional 202 of the ares as- } sumedreclssifed and reassessed } 12.801 6,150 18,951 15,382 23.4 73.3 2. SOZof the VU.A. are assumed active ) 1991 1. An additional 20Z of the areas as- } sumedreclassified and reasseJsed } 16,604 7,380 23,984 20,415 27.2 85.3 2. 60Zof the WU.A. are assumed active 1"2 1. An additional20Z of the areas assued reclassifedand reassessed 1 20,406 8,610 29,016 25,447 29.8 93.6 2. 70Z of the W.UA. are assumedactive ) 1993 1. lOOZof the projectarea assmed reassessed and reclasmified } 24,208 9,840 34,048 30,479 32.9 103.3 2. 80Z of the WU.A. are assued active }

/a For a amll-scale sysZom ln Central Java, assuming a farm size of 0.4 ha. 7 b Rcpresents the average agricultural nIND available to the Kabupaten (seeAnnex 4, Table 4). 7r MHdeof 20 kg of paddy per ha/crop, and 12 mam-days of labor per ha per year. 7i Source: Directorate of IPEDA, Ministry of Finance. 7Te Assuming for each year that the IPEDAand the W.U.A. collection frozen in real terw. for the remining years in the project. - 89 - ANNEX 5

INWNESIA CENTRALAND WEST JAVA PROVINCIALIRRIGATION DEVELOPMENT PROJECT

Statementsof Ezpenditure

1. Quarterlystatements of expenditureswould be used for costs related to designscarried out by local consultants,monthly per diems,etc. paid for training,miscellaneous equipment procured under contractsvalued a- less than US$100,000,progress payments made for civil works under contracts-alued at less than US$1.5million, IPEDA mapping and ownershipidentificatio= contracts valuedat less than US$200,000and IPEDA-relatedequipment (contrac=s valued less than US$100,000)and trainingexpenditures. The followingwou-d be the loan amountsand number of contractsfor these items: No. of Loar amount Item contracts (USS million

Designscarried out by local consultants 35 6.2 Trainingexpenditures for per diems, etc. - 0.6 Monitoring,evaluation and Water Users Associaticesrelated expenditures - 0.5 Miscellaneousequipment (contracts below us$100,000) 5 0.2 Civil works (contractsbelow US$1.5million) 320 65.8 IPEDA mapping and ownershipidentification 10 1.5 (contractsbelow US$200,000) IPEDA equipmentfor training 5 0.2 IPEDA training ezpenditures for per diems,etc. - 0.2

Total 375 75.2

2. All works and serviceslisted above would be procuredthrough a numberof small contracts,tendered according to LCB procedures,except expendituresrelated to monitoringand evaluation,water users associations and per diems,etc., paid for trainingpurposes. Contractdocumentation would be held by each ProvincialIrrigation Service and the IPEDA ProjectOffice, and would be made availablefor periodicsample inspection by Bank staff.

3. Statementsof expenditurewould be used to disburseabout 45Z of loan funds. These procedureshave been used widely in other ongoingBank irrigationloans to Indonesiawith good results. ANNEX6

- 90 -

INDONESIA

CENTRALAND WEST JAVA PROVINCIALIRRIGATION DEVELOPMENT PROJECT

SelectedDocuments and Data Availablein ProjectFile

Background Reports 1. Central Java Project Preparation Report (Executive Summary, Main Report and Appendices), Central Java Design Unit assisted by Sir M. MacDonald and Partners, March 1985.

2. West Java ProjectPreparation Report (Executive Summary, Main Report and Appendices),Central Java Design Unit assisted by Sir M. MacDonald and Partners,March 1985.

3. Lusi Valley (Dumpil)Irrigation Project Feasibility Study (Executive Suumary, Main Report,and Appendices),PRC EngineeringConsultants and Associates,September 1984.

4. Lusi Valley (Dumpil)Irrigation Project - DesignReport (March1985), designcriteria and prequalificationquestionnaire for ICB tenderof diversiondam (December1984).

5. Supplementarydraft reportsrelated to provincialcomponent provided by GOI during the appraisalmission; updated cost estimates,short feasibilitystudy discussionpaper for Cibuniand Cikasomedium-scale schemes in West Java, note on trainingaspects, invitation document of consulting servicesfor trainingand coordinationactivities and schedulesof imple- mentationfor mapping,reclassification and reassessmentactivities for the areas coveredunder the projectand the remainingareas of both provinces.

Staff WorkingPapers 1. Cost Tables 2. AgriculturalAspects 3. TablesRelated to Cost Recoveryand EconomicAnalysis 4. Monitoringand Evaluation 5. Mappingand Surveyfor IPEDA Reclassificationand Reassessment (consultantsreports) INDONESIA CENTRALMD WESTJPVA PROVlNCIAL IRRIGATIONDEVELOPMENT PROJECT DlrectofateGenral of WatewResources DeWlopment(DGWtOD) Organizaton

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