FILE COPY. Document of The World Bank. Public Disclosure Authorized FOR OFFICIAL USE ONLY. Report No. 2232b-IND. Public Disclosure Authorized

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY INDONESIA TWELFTH IRRIGATION PROJECT STAFF APPRAISAL REPORT December 1, 1978 Projects Department East Asia and Pacific Regional Office Report No. 2232b-IND FILE COPY This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

2 CURRENCY EQUIVALENTS /a US$1.00 = Rupiahs (Rp) 415 Rp 100 = US$0.241 Rp 1 million = US$2, WEIGHTS AND MEASURES - METRIC SYSTEM 1 millimeter (mm) = inches 1 meter (m) = inches 1 kilometer (km) = 0.62 miles 1 square kilometer (sq m) = square miles 1 hectare (ha) = 2.47 acres I cubic meter (cu m) = cubic feet 1 million cubic meters (MCM) = 811 acre feet 1 liter (1) = gallons (USA) 1 liter/second (1/sec) = cubic feet per second 1 kilogram (kg) = 2.2 pounds 1 metric ton (ton) = 2,205 pounds CONVERSION FACTORS FOR RICE 1 ton "dry stalk paddy" = 800 kg paddy ("paddy gabah") = 500 kg milled rice 1 ton paddy (gabah) = 630 kg milled rice INDONESIA FISCAL YEAR April 1-March 31 /a The Rupiah was devalued on November 15, 1978 from Rp 415 to the equivalent of Rp 625 to the US dollar. The project was appraised and negotiated on the basis of Rp 415 and the figures estimated in this report are based on this exchange rate.

3 FOR OFFICIAL USE ONLY ABBREVIATIONS BIMAS - Bimbingan Massal Swa Sembada Bahan Makanan "Mass Guidance for Self-Sufficiency in Foodstuffs" a farm input-credit package program Bina Marga - Directorate-General of Highways BRI - Bank Rakyat Indonesia - People's Bank of Indonesia BULOG/DOLOG - Badan Urusan Logistik - "National Logistics Body" - rice procurement agency/depo Logistik - provincial branch of BULOG Bupati - District Officer BUUD - Bahan Usaha Unit Desa - Forerunner of KUD as Village Unit Cooperative DGWRD - Directorate-General of Water Resources Development DGC - Directorate-General of Cooperatives DGFC - Directorate-General of Food Crops DIP - Project Implementation Budget DOI - Directorate of Irrigation GOI - Government of Indonesia HYV - High-Yielding Variety INMAS - Intensifikasi Massal - "Massive Intensification" - a farm input program INPRES - Instruksi Presiden - "Presidential Instruction" - a rural public works program IPEDA - Iuran Pembangunan Daerah - Land Tax KUD - Koperasi Unit Desa - Village Unit Cooperative MOA - Ministry of Agriculture NFCE - National Food Crops Extension Project O&M - Operation and maintenance P4S - Proyek Pembukaan Persawahan Pasang Surut - a special project executive body of the DGWRD to carry out tidal land development Pelita - Five-Year Development Plan PPL - Field Extension Worker PPM - Middle Level Extension Worker PPS - Subject Matter Specialist PROSIDA - Proyek Irigasi IDA - a special project executive body of DGWRD created to execute IDA-assisted projects PUSDIKLAT - Pusat Pendidikan dan Latihan Kerja - "Center for Education and Training" in the Ministry of Public Works REC - Rural Extension Center VU - Village Unit GLOSSARY Gotong Royong - Cooperative effort by villagers Palawija - Crops other than rice, sugarcane and estate crops. Major ones are corn, soybean, groundnut, vegetables and tubers. Ulu ulu - Water master This document has a restricte distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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5 INDONESIAr APPRAISAL OF THE TWELFTH IRRIGATION PROJECT TABLE OF CONTENTS Page No. 1. BACKGROUND General The Agricultural and Rural Sector The Irrigation Subsector Project Formulation THE PROJECT AREAS Location Climate Soilso. 7 Population, Farm Size and Land Tenure Existing Works and Infrastructure THE PROJECT Project Description Project Works Consulting Services Water Supply, Demand and Quality Status of Engineering Implementation Schedule Cost Estimates.16 Financing Procurement.. 18 Disbursements Accounts and Audits.. 19 Environmental Effects ORGANIZATION AND MANAGEMENT Project Management Training Agricultural Support Services Operation and Maintenance Monitoring.26 This report is based on the findings of an appraisal mission composed of Messrs. J.T. Caparas, P. Momal, W.P. Ting (Bank), L. Miranda and P.T. Reddy (Consultants) which visited Indonesia in June 1978.

6 Page No. 5. AGRICULTURAL PRODUCTION Present Cropping Patterns Future Cropping Patterns Yields and Production Cropping Calendars Drying, Storage and Processing MARKET PROSPECTS, PRICES, FARM INCOMES AND PROJECT CHARGES.. 31 Market Prospects Prices Farm Incomes Project Charges BENEFITS, JUSTIFICATION AND RISKS AGREEMENTS REACHED AND RECOMMENDATION List of Tables in Main Report 1.1 Tertiary Development in the Jatiluhur Area Consulting Services Cost Estimate Summary Cropping Patterns, Yields and Production Price Structure for Food Crops and Fertilizers Input and Output Price Summary Summary of Farm Budgets Rent Recovery Economic Benefits_ Total Monthly Crop Labor Requirements Economic Costs and Benefits Sensitivity Analysis ANNEXES 1 Cost Estimates, Expenditures, Disbursements, Allocation of Loan Proceeds, Equipment List, Unit Prices and Work Quantities Crop and Farm Budgets Schedule of Early Events O&M Funds for Bank-Assisted Irrigation Projects Related Documents and Data Available in Project Files

7 - iii - List of Figures 3.1 Implementation Schedule 4.1 Jatiluhur Authority Management Organization 4.2 Tertiary Development Field Organization 4.3 Water Resources Organization 4.4 PROSIDA Management Organization 4.5 PROSIDA Subproject Organization 5.1 Proposed Cropping Calendar List of Maps IBRD Irrigation Project XII IBRD Cisedane Drainage

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9 INDONESIA APPRAISAL OF THE TWELFTH IRRIGATION PROJECT 1. BACKGROUND General 1.01 The Government of Indonesia (GOI) has requested Bank assistance for tertiary development /1 on 186,000 ha and construction of operation and maintenance (O&M) staff housing in the Jatiluhur area in West Java; rehabilitation and improvement of drainage works and inspection and access roads in the Cisedane area in West Java; and studies and investigations for future flood control and drainage projects in Central Java and South Sulawesi and for tidal land development projects in South Sumatera and Central Kalimantan Studies for the tertiary development component were carried out by the Jatiluhur Authority. PROSIDA prepared the Cisedane drainage component with consultant assistance (Halcrow, U.K.) funded under Loan 1268-IND. Agricultural and Rural Sector 1.03 Objectives. The major national objectives in the agricultural and rural sector in Indonesia are to: (a) create produtive employment to raise the incomes of the rural poor, (b) increase domestic food supply to keep pace with rising demand, (c) expand agricultural exports, particularly of smallholder tree crops, and (d) ensure productive, sustainable use of Indonesia's land, water and other natural resources Role and Performance. Although agriculture's contribution to GDP and export has declined during the past 15 years (from 55% to 33% and from 55% to 23%, respectively), the rural sector remains of overwhelming importance to the vast majority of the Indonesian people in terms of employment, incomes and food production. Some 80% of the country's million people /2 live in rural areas, and agriculture employs about two thirds of the total labor force. Except for oil palm and tea, agriculture is dominated by smallholder production; there are some 14.4 million smallholders producing subsistence and cash crops on 14.2 million ha. There are also 1,800 estates occupying 2.2 million ha producing mainly rubber, sugar, tea, palm oil and tobacco. Over the past five years, the growth rate of agricultural production has been uneven, averaging 4% p.a., while total GDP grew at 8% p.a Development Problems and Potential. In Java, the cultivable land is almost fuly utilized and in some areas agricultural land use already exceeds ecologically safe limits. In 1976 about 82 million people lived in Java, which has 45% of the cropped area but only 7% of Indonesia's land area. About one-third of Java's rural population is landless, and a large /1 Tertiary development includes the construction of both tertiary and quarternary irrigation canals, structures and drains. /2 Estimate for mid-1978 based on the Inter-censal Population Survey of March 1976.

10 - 2 - proportion of the remainder cannot support themselves on income from their own farms. Outside Java, there are large areas of unused cultivable land, less fertille than in Java, and other natural resources to be exploited. While the inhabitants of these islands do not have high standards of living, they are generally better off than most in rural Java Employment. Perhaps the single most important challenge facing the Indonesian Government is to guide and structure the develbpment process in such a way that the creation of new opportunities for gainful employment does at least keep pace with the growth of the labor force. The changes associated with modernization in rural Java are generally labor-saving, so that farming is increasingly becoming a part-time activity. Modern manufacturing and services have been unable to fully absorb the incremental labor force. Successful locally administered public rural works programs (INPRES), may be difficult to expand due to limited budget and implementation capacity. Future employment strategy will probably include stress on labor-intensive export industries and small-scale rural enterprises producing for the domestic market. There may also be potential for more productive agricultural employment through increased cropping intensity and a shift to higher value crops and livestock, including fruits and vegetables grown on house compounds Food Crops. Despite the heavy emphasis on rice production in the past, the gap between domestic production of and demand for food appears to be widening. Production of rice and the principal nonrice food crops has not kept pace with the growth in aggregate demand over the past few years. To keep rice imports at some reasonable fraction of world rice trade, demand must be shifted to other domestic and imported staples, and the rate of growth of rice production should ideally approach 4% p.a. compared to an average of 3.5% p.a. over the past decade, and only 1.7% over /I Improved water management and agricultural supporting services are essential for increasing rice yields and production. On Java there remains much scope for more efficient water use, through construction and/or improvement of additional tertiary and quaternary canals. On the Other Islands there is considerable potential for new irrigation systems including tidal and swamp land development. On both Java and the Other Islands, secondary food crops also offer promising development prospects. For example, there is much room for yield improvement through intensified research and supporting services, and great scope for the expansion in harvested area. A food policy which emphasizes secondary crop production as well as rice would serve the twin goals of growth and equity as many of the poorest parts of Java and the Other Islands are best suited to dry land farming Tree Crops. The Government has embarked on a major effort to develop smallholder tree crops outside Java as part of its transmigration and national rubber and coconut replanting programs. The objective is to /1 This low growth rate was the result of below average harvests caused by inadequate and untimely rainfall in many areas of Java and by pest and disease damage to high yielding varieties. Production from the 1977/78 crop is reported to be much improved.

11 - 3 - improve production on existing blocks while developing large areas of new land for settlement. One of the Government's main approaches has been to use public estate companies to plant tree crops on land to be settled by local landless families and transmigrants. The estate companies provide a range of services including planting material, land clearing and planting, inputs, processing and marketing facilities for the smallholders. This approach is well taken in view of Indonesia's scarce managerial and technical capabilities Transmigration. Transmigration offers substantial opportunities for improving social equity and the economic use of Indonesia's two main underemployed resources: Javanese labor and land in the Other Islands. Transmigration has long been hampered by unrealistic expectations about its potential contribution to regional development and the solution of Java's population problems, overambitious targets and weak, uncoordinated implementation. These problems are now being addressed and the Bank is engaged in a wide ranging discussion with the Government on its transmigration program and the manner in which the Bank can assist. Organizational aspects of transmigration, the design of farming systems and the package of services which will support successful, long-term settlement are among the issues being examined The Role of the Government. The capacity of the Indonesian Government to plan and implement agricultural and rural development programs has generally improved over the past decade. However, future programs responsive to the Government's stated objectives will necessarily be more complex than those which the Government has followed up to now. They will require closely coordinated "packages" of research, extension, inputs, credit, land development, transportation and marketing improvements. Multiagency integrated area development programs in Java and land settlement schemes in the Other Islands will require stronger field organizations of Government line agencies and local governmental authorities, as well as new administrative arrangements. With the more complex organizational requirements of future programs, implementation capacity is likely to become the limiting factor in Indonesia's economic and social development. It is therefore of utmost importance that the Government continue its efforts to strengthen the key rural development institutions Bank Lending Strategy. There is general agreement between the Bank and the Government on the overall objectives and strategies proposed for the rural sector. While views sometimes differ on the relative emphasis to be given to different investments and on the technical design of some projects, such differences are not profound and are likely to be resolved with further analysis and dialogue. The Bank is devoting considerable staff time to various analyses of the rural sector (e.g. employment, irrigation development, support services and food crop production) in order to improve its understanding of the needs of the sector and the Government's policies The Bank has been and should continue to be involved in a broad range of agricultural and rural activities in Indonesia. Since the first irrigation credit was made in 1968, the Bank has rapidly expanded its agricultural and rural lending to include support for estate and smallholder tree crops, fertilizer production and distribution, sugar estates, support services, transmigration, livestock and fisheries. An integrated rural development project is currently being appraised. Credits already closed and for which Project Completion Reports have been prepared (e.g. Estates I, Irrigation I)

12 showed excellent rates of return ranging from 25% to 33%. Taking 1974 as a base year, Bank financed projects will contribute almost 60% of the increase in palm oil output by 1980, about 16% of incremental sugar production and 6% of incremental rice and rubber. Four continuing trends in Bank agricultural lending to Indonesia are: (a) a shift from rehabilitation to new development activities; (b) a shift from support of state enterprises to direct support of smallholders; (c) an increased emphasis on rainfed systems; and (d) greater emphasis on development of the Other Islands. All these trends are consistent with the Government's changing policies. The Irrigation Subsector 1.13 Rice is the dominant irrigated crop in Indonesia. Of an estimated 8.4 million ha of rice harvested in 1977, 7.2 million ha were irrigated or grown under wet land conditions. Irrigation systems cover a service area of about 5 million ha, of which about 4 million ha are of a quality which is adequate for irrigated rice production. Java accounts for 60% of the irrigated area. Average paddy yields on Java are about 3.2 ton/ha compared with 2.8 ton/ ha in the Other Islands. Although irrigation has long been a major feature of Indonesian agriculture, by the late 1960s, the systems built during the colonial period were in a state of complete disrepair. Irrigation development during the first two development plan periods concentrated heavily on the rehabilitation of these systems. Construction of new systems, mainly to serve as the basis for transmigration projects outside Java, lagged behind With the rehabilitation of most existing irrigation systems either completed or under way, future irrigation development in Indonesia will shift to the construction of new gravity systems and swamp and tidal land development outside Java. This shift does not mean, however, that irrigation development on Java should stop. Many of the existing systems still need to be fully rehabilitated or upgraded at relatively low cost, and the limited potential for large storage and groundwater should be developed to expand dry season cropping as far as economically feasible. A recent Bank review of Indonesia's irrigation program /L concluded that to expand rice production at the same rate as demand (about 4% per year), the level of annual investment in irrigation should be increased by about 20% by the end of the Third Five-Year Plan (1984). This in turn would require strengthening of the Directorate-General of Water Resources Development (DGWRD), training and staff development, and an expansion of agricultural supporting services. Project Formulation 1.15 In line with its objective of intensifying crop production in areas served by recently rehabilitated irrigation systems, the Government has embarked on a tertiary development program which is designed to further upgrade these systems at relatively low cost and establish good water control, timely and equitable water distribution and optimal utilization of available water supplies. This tertiary construction program is initially /1 Bank Report No. 2027a-IND, "Indonesia - Irrigation Program Review," October 16, 1978.

13 -5 - concentrated on systems in Java, but would eventually be extended to systems in the Other Islands. It should be noted that a recent report by the Operations Evaluation Department of the Bank entitled "Sector Operations Review: The Agricultural Program in Indonesia," dated August 9, 1978, commented inter alia that there is still a gap in the Bank's knowledge about the social and institutional factors related to the reasons why tertiary network development has lagged. Staff involved with this project examined the available evidence and concluded that under the circumstances the financing of tertiary network development in Jatiluhur was economically justified, in line with Government policy and would not run counter to traditional, social and institutional patterns. To carry out its tertiary development program, the Government requested Bank assistance for the preparation of large scale maps for more than one million ha. This assistance was provided under Loans 1100/1268/1434-IND, and topographic maps at 1:5,000 scale and 0.5 m contour interval have now been produced for about 70% of the area from aerial photographs, rectified photo mosaics and supplementary ground surveys. Tertiary development is currently being carried out with Bank Group assistance on about 320,000 ha in systems rehabilitated by PROSIDA under seven previous Loans/Credits which did not provide funds for these works, about 85,000 ha in the Jatiluhur area, and about 100,000 ha in systems being rehabilitated by the Directorate of Irrigation (DOI). Following the issuance in 1977 of a Presidential Decree authorizing the large-scale construction of tertiaries, the Government also started to build, wholly with its funds, tertiaries on about 360,000 ha in systems under the jurisdiction of DOI, about 35,000 ha in the Jatiluhur area and about 12,000 ha in systems rehabilitated by PROSIDA In the Jatiluhur area, tertiary construction being assisted by the Bank Group under Credit 514-IND (50,000 ha) and Loan 1579-IND (8,000 ha) is to be completed by December 1981, in phase with the completion of the secondary systems being upgraded and extended under these projects. Similar works for a further 25,000 ha financed under Loan 1268-IND are scheduled to be completed early in 1979, while the 35,000 ha of Government-funded tertiaries are expected to be completed by March Because of the demonstrated capability of the Jatiluhur Authority to supervise the design and construction of these systems, and in view of the Government's commitment to the tertiary construction program, the Bank has been asked to finance the construction of tertiary systems for the remaining 186,000 ha in the Jatiluhur area under the project. To keep pace with construction requirements, the Government has already completed the preparation of detailed designs and construction drawings for 71,000 ha of tertiary systems, and has requested Bank assistance under the proposed project for similar designs on the remaining 150,000 ha (Table 1.1) Also in line with its objective of intensifying crop production in areas served by recently rehabilitated irrigation systems, the Government has started to look into the flooding and drainage problems which continue to depress cropping intensities and yields on some 50,000 ha of low-lying land within these systems. Because of these drainage problems, the maintenance of the relatively few inspection and access roads had been extremely difficult

14 - 6 - and consequently neglected, and the construction of new roads had been repeatedly put off. The absence of a reasonably dependable road network in these areas has seriously hampered the movement of agricultural products and inputs, as well as the flow of extension services into these areas. Following the Government's request for Bank assistance in alleviating these problems, studies and investigations were financed under Loan 1268-IND. As a result of these studies, funds for the improvement of flood control, drainage and road networks in the Ciujung area were included in Loan 1434-IND, and funds for similar improvements in the Cisedane area are included in this project. Further flood control and drainage studies in the Pemali-Comal and Sadang areas, where flooding is not only due to local runoffs but also to sizable overbank flows from major rivers which drain large hinterland catchments, are included in the studies and investigations component of this project. Table 1.1: TERTIARY DEVELOPMENT IN THE JATILUHUR AREA Service area Design Construction - (ha) With Bank Group Assistance Credit 195-IND/Loan 1268-IND/a 200,000 25,000 25,000 Credit 514-IND 50,000 50,000 50,000 Credit 1579-IND 8,000 8,000 8,000 Irrigation XII - 150, ,000 Subtotal 258, , ,000 GOI (no outside assistance) 46,000 71,000 35,000 Total 304, , ,000 /a Rehabilitation of primary and secondary systems was completed under Credit 195-IND; tertiary development is nearing completion under Loan 1268-IND. Location 2. THE PROJECT AREAS 2.01 The tertiary development area is one of the most important rice producing areas in Java. It is located along the north coast of West Java and extends in an east-west direction for about 140 km immediately to the east of Jakarta. The 186,000 ha to be provided with tertiary systems would be spread over the northern and southern portions of the area served by

15 the Jatiluhur irrigation system. This area is bounded on the north by the Java Sea, on the east by the Cilalanang River, on the south by the East and West Tarum main canals, and on the west by Jakarta. The 5,000 ha Cisedane drainage area is located within the service area of the 42,000 ha Cisedane irrigation system, which lies immediately to the west of Jakarta. It is bounded on the east by the Angke River, on the north by the Java Sea, on the west by the Cidurian River, and on the south by the Tanah Tinggi and west primary irrigation canals from the Pasar Baru barrage on the Cisedane River. Tangerang, the main town, lies some 28 km to the west of Jakarta. Climate 2.02 There is little variation in the tropical, monsoonal climate of the project areas, with temperatures varying only a few degrees from the annual average of 260C. Seasonal weather patterns prevail with the wet season (northwest monsoon) extending from November to May and the dry season (southeast monsoon) from June through October. Mean annual precipitation in the project areas ranges from about 1,500 to 3,000 mm. The rainfall pattern is shown in Fig The relative humidity varies only slightly from the mean annual value of about 80%. Soils 2.03 The project areas lie on a plain along the north coast of Java. Alluvial and volcanic soils are prevalent in both the Jatiluhur tertiary development and the Cisedane drainage areas. Percolation rates of the soils are low. The soils are slightly acidic in reaction and respond positively to nitrogenous and phosphatic fertilizers. The project lands slope from 0-2% near the coast and rise gently to the higher ground inland. Near the coast, the land is extremely flat and frequently subjected to flooding during the wet season. Improved surface drainage would remove excess rainfall and spills from river channels. Except for poor drainage in low coastal areas, the soils are generally well suited to rice cultivation. The improvement of internal drainage systems and the construction of flood control works on major rivers in these areas (para. 3.05), which would be carried out under the project, would largely eliminate the drainage and flooding constraints on rice production. Population, Farm Size and Land Tenure 2.04 Some 346,000 farm families and 61,000 landless families inhabit the 186,000 ha Jatiluhur tertiary development area. The total Cisedane area covers 42,000 ha, with a population of about 85,000 farm families and 25,000 landless families; on average, about 5,000 ha are inundated each year with some 10,000 farm families and 3,000 landless families affected. The following table gives population statistics:

16 -8- Average No. of No. of Area Rural family farm landless Location (ha) population size families families Jatiluhur 186,000 2,239, ,000 61,000 Cisedane 42, , ,000 25, Farm size and land tenure data are sketchy. Information from local officials suggest an average farm size of 0.5 ha in both project areas. The following table gives an estimate of farm size distribution: Jatiluhur Cisedane No. of farms Area No. of farms Area (%) (%) (%) (M) Less than 0.5 ha ha ha ha ha More than 2.0 ha Average farm size 0.5 ha 0.5 ha 2.06 In both project areas, about 60% of the farmers are owner-operators, and 40% are sharecroppers. In most sharecropping arrangements the tenant and landlord equally share total production, inputs and harvesting cost; the tenant and his family provide their labor and the landowner pays the land tax. The landless population is about 15% of the rural population in Jatiluhur and 20% in Cisedane. Existing Works and Infrastructure 2.07 The Jatiluhur tertiary development area is served by the West Tarum, East Tarum, North Tarum and Cipunegara irrigation systems,/l which were rehabilitated under Credit 195-IND. Run-of-river supplies for these systems are augmented by water released from the Jatiluhur reservoir. This water is impounded by the Jatiluhur dam, a 105 m high zoned-fill embankment on the Citarum River with a crest length of 1,200 m and a usable storage of 2,000 MCM./2 The water is released through the Jatiluhur power plant /1 These systems are collectively known as the Jatiluhur irrigation systems. /2 Million cubic meters.

17 is rediverted about 10 km downstream by the Curug barrage and pumping stations. The West Tarum pumping station, which supplies the West Tarum system through the West Tarum main canal, has 17 hydraulically-driven pumps with a total capacity of 93 cu m/sec at a maximum lift of 2 m. Water conveyed through the West Tarum main canal is augmented by run-of-river diversions from the Cibeet, Cikarang and Bekasi rivers by barrages bearing the same names. The East Tarum pumping station, which supplies the East Tarum and Cipunegara systems through the East Tarum main canal, has 6 electricallydriven pumps with a combined discharge of 91 cu m/sec at a maximum lift of 4 m. Water supply for the North Tarum system is released to the Citarum downstream of the Curug barrage through 17 turbines with a 5 m head. These turbines drive the 2 m lift pumps supplying the West Tarum system. Water released through these turbines is rediverted farther downstream by the Walahar barrage, and is conveyed to the North Tarum system through the Walahar main canal. Water supply for the Cipunegara system is diverted from the Cipunegara by the Salamdarma barrage. This unregulated supply is augmented by water released from the Jatiluhur reservoir and conveyed through the East Tarum main canal. All the main and secondary canals of the above systems have been rehabilitated and upgraded, and tertiary systems are about to be completed on 25,000 ha of their 200,000 ha service area The Cisedane project area is within the area served by the Cisedane irrigation system which was completed in 1936 and rehabilitated under Credit 127-IND. Water supply for this system is diverted by the Pasar Baru weir some 2 km downstream of Tangerang. Apart from the Cisedane, other large rivers in the project area are the Cidurian, Cimanceuri, Cirarab and Angke. Rivers whose catchments lie outside the project area but which traverse the area before discharging into the Java Sea are the Mati/Cipasilian, Cileuleus, Cirarangan and Cilongkok. All these rivers contribute to the flooding of a large number of pockets of low-lying land which are distributed over the 42,000 ha service area of the Cisedane irrigation system. These pockets are flooded annually because their internal drainage systems have inadequate capacity; existing control structures (flap gates) are inoperative; drainage channels have been blocked or their capacities substantially reduced by brush dams erected by farmers using drainage water for irrigation; capacities of natural channels/rivers have been reduced due to silting, weed growth and erection of fish traps; and sea outfalls of rivers are blocked or their discharge reduced by sand bars formed by the littoral drift The Jakarta-Tangerang-Serang highway provides access to the Cisedane area. A number of Kabupaten (district) roads connect with this highway to provide access inside the area. These roads are in poor condition and need rehabilitation and improvement. Inspection roads are also required to facilitate the maintenance of irrigation and drainage works and to improve the movement of agricultural products, inputs and services.

18 THE PROJECT Project Description 3.01 The project would consist of: (a) tertiary development on 186,000 ha within the service area of the Jatiluhur irrigation system in West Java, which was rehabilitated under Credit 195-IND; (b) improvement of flood control, drainage and road networks on about 5,000 ha of low-lying land distributed throughout the 42,000 ha Cisedane irrigation system in West Java, which was rehabilitated under Credit 127-IND (Map 13780); and (c) studies and investigations for future flood control and drainage projects within the 123,000 ha Pemali-Comal irrigation area in Central Java and in the 55,000 ha Sadang irrigation area in South Sulawesi, which were rehabilitated under Credit 220-IND, and for tidal land development projects in South Sumatera and Central Kalimantan (Map 13783). Project Works 3.02 The project works can be summarized as follows: Jatiluhur Tertiary Development (a) construction of about 2,800 km of tertiary and subtertiary and 9,300 km of quaternary irrigation canals, 7,400 km of tertiary and quaternary drains and about 16,700 tertiary and quaternary canal structures; (b) preparation of detailed designs and construction drawings for 150,000 ha of tertiary systems; (c) construction of 259 units for operation and maintenance (O&M) staff housing, distributed throughout the Jatiluhur service area and having a total area of about 10,100 sq m; (d) local in-service training for O&M personnel and water management training for members (key farmers) of water-user associations in the various tertiary blocks; and (e) procurement of vehicles and equipment. Cisedane Drainage (a) dredging of 9 river mouths, enlargement of about 11 km of outlet channels and raising of the adjacent embankments;

19 (b) rehabilitation of about 138 km of primary drains, including their flood embankments; (c) improvement and construction of about 19 km of collector drains, 103 km of secondary drains, 34 control structures, 16 check structures, 20 box culverts, 75 pipe culverts and 700 other minor structures; (d) upgrading of about 109 km of access roads; (e) construction of about 121 km of inspection roads; (f) rehabilitation of about 9 and reconstruction of about 19 bridges; (g) procurement of vehicles and equipment; and (h) engagement of consultants to prepare construction drawings for the drainage works and to supervise the construction of works included under this subproject. Studies and Investigations (a) Preparation of a socioeconomic study of flood-affected areas in the Pemali-Comal and Sadang areas and along the Cisanggarung River; (b) completion of the feasibility study of internal drainage and river improvement works for the areas described in para. (a) above; (c) preparation of detailed design and construction drawings for the internal drainage works in the Sadang area and in the Comal and Padakaton blocks of the Pemali-Comal area, and for the river improvement works on the Cisanggarung River; (d) preparation of socioeconomic surveys, soil surveys, soil maps and preliminary engineering designs for the Lalang (180,000 ha) and Mesuji (50,000 ha) areas in South Sumatera and the Sebangau (120,000 ha) area in Central Kalimantan; (e) preparation of feasibility studies for the Lalang, Mesuji and Sebangau areas; (f) photogrammetric mapping of the Lalang, Idesuji and Sebangau areas and supplementary topographic mapping of the 110,000 ha Karang Agung area in South Sumatera; (g) preparation of detailed designs and construction drawings for the Karang Agung area; (h) provision of one training specialist to assist DGWRD in evaluating its long-term training and staffing needs and; (i) procurement of vehicles and equipment.

20 Tertiary systems to be funded under the project would be designed and constructed to the standards developed under Loan 1268-IND. These include: (a) tertiary blocks averaging 150 ha and quaternary blocks of ha; (b) field-to-field irrigation within quaternary blocks limited to 6-10 fields with no field further than 300 m away from a quaternary turnout; and (c) internal drains designed to prevent flooding for more than 72 hours. Based on past experience, design modifications were introduced early 1978: the number of parallel canals in tertiary systems was limited to two in order to reduce farmers' reluctance to donate land and to minimize O&M costs; and quaternary blocks were generally limited to 10 ha to ensure equitable water distribution to down stream users. The Jatihulur Authority, with consultant assistance (para. 3.07), would design and lay out the canals and structures; local contractors would build them. This is a departure from the procedure followed in earlier projects where structures were built under contract but earthwork was carried out under gotong royong (aided self-help) by farmers/landless laborers or in conjunction with the INPRES rural work program. This has not been very successful in achieving a speedy completion of tertiary canals and structures. Under' this project contractors in the tertiary development areas would employ farmers and landless laborers to do earthwork at prevailing wage rates. With the above modifications to design criteria and construction procedures tertiary development is anticipated to be much more rapidly achieved. Under Loan 1268-IND, the Jatiluhur Authority has already adopted this procedure for the construction of about 12,000 ha of tertiaries in FY77/78, with highly satisfactory results. The quality of earthwork in the completed systems has consistently been superior to that carried out under gotong royong in other areas. Unit costs probably average US$300 per ha and US$180 per farm family The new staff houses in the Jatiluhur area would supplement the 286 houses already built under Credits 195/514-IND. Of the 259 new staff houses, 9 would be for watermasters, 50 for irrigation foremen and the remaining 200 for gatekeepers. The watermaster's house (50 sq m) would adjoin his office (70 sq m). Houses for irrigation foremen and gatekeepers would each have a floor area of 36 sq m. The housing density would approximately be one watermaster's house for every 7,500 ha, one irrigation foreman's house for every 2,500 ha, and one gatekeeper's house for every 500 ha Flooding in the Cisedane area occurs on some 45 pockets of low-lying land distributed throughout the area. Flooding of these pockets is produced by local runoffs which exceed the present capacities of the internal drainage systems. In a number of cases, flooding is also caused by overbank flow from rivers with large upstream catchments, which traverse the area before discharging into the Java Sea. Under the project, all rivers with catchment areas greater than 150 sq km would be isolated from the internal drainage systems by improving their courses, channels and outlets, and by rehabilitating and raising their flood embankments. An analysis of costs and benefits from a number of alternative schemes sized to take care of floods of various magnitude showed that returns from investment would be optimum if these improvements are designed to cope with a 25-year flood. The project works have, therefore, been sized accordingly. Minor rivers would be incorporated

21 into the internal drainage system after improving their courses, channels and outlets. Improvements on these rivers and on the associated internal drains have been designed to preclude crop submergence for more than 72 hours during a flood produced by a 3-day maximum rainfall with a 5-year return period. Structures on the internal drainage systems would include hydraulic control structures at the junction of natural channels and collector drains, and check structures at the outfall to the primary drains/rivers. In the dry season, these structures would preclude sea water intrusion and prevent freshwater drainage from the systems, thereby conserving the volume and quality of water available for irrigation and domestic consumption. In addition, ancillary structures would be constructed to isolate the coastal fishponds and provide them with the necessary inlet and outlet controls Access roads to the Cisedane area would be upgraded by raising low portions of their embankments, improving existing and constructing new cross-drainage structures and, where necessary, restoring their base courses and bituminous surfacing. Bridges on these roads would be reconstructed or improved to enable them to withstand a loading equivalent to 70% of the Directorate-General of Highways' (Bina Marga) standard loading for highway bridges. In consultation with Bina Marga, this has been deemed adequate for all likely loading from construction equipment and the anticipated traffic. Inspection and access roads along embankments of primary and secondary drains would have a 25 cm gravel base course and a 4.0 m roadway. Consulting Services 3.07 To assist the implementing agencies, who currently do not have the required in-house capability, the project provides for the services of expatriate and local consultants during project implementation. Local consultants would be engaged to prepare detailed designs and construction drawings for 150,000 ha of tertiary systems in the Jatiluhur area. Expatriate and local consultants would be employed to prepare construction drawings and to supervise construction of the Cisedane drainage component. These consultants would also undertake socio-economic surveys of flood-affected lands in the Pemali-Comal and Sadang areas and along the Cisanggarung River; complete the feasibility studies on internal drainage and river improvement works in these areas; and prepare detailed designs and construction drawings for internal drainage works in Sadang and in the Comal and Padakaton blocks in the Pemali- Comal area, and for river improvement works along the Cisanggarung River. An expatriate advisor would be retained to assist the DGWRD in evaluating its long-term training and staffing needs (para. 4.05). Local and expatriate consultants would be engaged to assist in carrying out the tidal land development studies. Local consultants would undertake the socio-economic and soil surveys, prepare soil maps and preliminary engineering designs for the Lalang, Mesuji and Sebangau areas, and produce detailed designs and construction drawings for the Karang Agung area. Expatriate consultants would review the work of the local consultants and, based on the data supplied by them, proceed to prepare the feasibility studies for the Lalang, Mesuji and Sebangau areas and update the feasibility study for the Karang Agung area. The number

22 of man-months required to carry out these services as well as their estimated costs are presented in Table 3.1 below. Assurances were obtained that the training advisor and all consultants required during project implementation, including those for the design of the first 75,000 ha of tertiaries, would be engaged on terms and conditions acceptable to the Bank by July 31, The consultants employed to assist with the first 75,000 ha should be employed by July 31, 1980 to assist in completing the detailed designs and construction drawings for the remaining 75,000 ha. Table 3.1: CONSULTING SERVICES Man-months Estimated cost Project Foreign Local /a Foreign Local Total (US$ million) Jatiluhur tertiary development - 2, Cisedane drainage Studies and investigations Flood control and drainage DGWRD staffing & training needs Tidal land development 170 1, Total 554 5, /a Includes engineer and technician man-months; the latter have been converted to equivalent engineer man-months by dividing by three to obtain the numbers shown. Water Supply, Demand and Quality 3.08 Water supply and demand in the tertiary development areas have been examined under Credit 195-IND. The supply to the four major systems in these areas is augmented in the dry season by releases from the Jatihulur reservoir. A study of the optimum utilization of the Jatiluhur reservoir and the unregulated water supplies in other rivers in the area for irrigation, power generation and water supply was carried out by the Jatiluhur Authority in 1973 with consultant assistance (Sogreah, France). This study indicated that the available supplies would support a cropping intensity of about 190%. This was subsequently confirmed during operation. Under the project no additional supplies would be developed, but the improvement in water control, delivery and distribution that the project works would produce is expected to enable the farmers in these areas to achieve about 215% cropping intensity Water supply and demand in the Cisedane area were reviewed under Credit 127-IND and subsequently confirmed during operation. The run-of-theriver system which serves the area is currently capable of supporting a

23 cropping intensity of about 150% on the non-flooded areas. On the annually flooded areas, however, the present cropping intensity is only about 100%. This relatively low cropping intensity is due to the frequent need to replant paddy after the occurrence of floods, resulting in the encroachment of the late wet-season replanted paddy upon the limited river flow which would otherwise be available for dry-season crops. No new supplies would be developed under the project but, upon completion of the flood control and drainage works, cropping intensity in the currently flooded areas is expected to become equal to that of the non-flooded areas (150%) The present water supplies in the Jatiluhur and Cisedane areas have been used for many years with no observed ill effects on crops and soils. The water is extremely turbid in the wet season, especially in the Cisedane area, but except for the frequent desilting of canals that this entails, no adverse effects on crops and soils are foreseen. Status of Engineering 3.11 All topographic maps (1:5,000 scale and 0.5 m contour interval) needed for the development of tertiaries in the Jatiluhur area were completed under Loan 1268-IND. Local consultants funded by the Government in FY77/78 have completed detailed designs and construction drawings for 71,000 ha of tertiary systems in the area. The Government financed construction of 35,000 ha of these systems in FY78/79; the remaining 36,000 ha will be constructed under the project. Detailed designs and construction drawings for the remaining 150,000 ha to be constructed under the project will be prepared by local consultants to be funded under the project (para. 3.07) Mapping in the Cisedane area was assisted under Loans 1100/1268-IND. The entire area is now fully covered with topographic maps at 1:5,000 scale and 0.5 m contour interval, which would be fully adequate for the design of internal drains included in the project, as well as tertiary development under future projects. In addition, PROSIDA has carried out profile and cross-section surveys along the courses of primary and secondary drains. These surveys have been reviewed by drainage consultants (Halcrow) funded under Loan 1268-IND, and augmented by supplementary surveys wherever found necessary. The consultants have completed all hydrological studies, conceptual designs and about 30% of detailed designs from which work quantities, cost estimates and tender documents for the first year of project implementation have been prepared. The same consultants would complete the remaining tender documents and construction drawings in phase with construction requirements. Implementation Schedule 3.13 The project would be implemented over a four-year period from mid-1979 through early 1983 (Figure 3.1). The Jatiluhur tertiary development and Cisedane drainage components would require the full four years, with the initial contracts for the tertiary development awarded in mid-1979 and for the drainage in mid Studies and investigations to be carried out under the project are expected to start early 1979 and to be completed by the end of Assurances have been obtained that the Government would prepare a project completion report promptly after the completion of project works.

24 Cost Estimates 3.14 The total project cost is estimated at US$118.5 million, of which US$56.3 million (48%) is the foreign exchange component. Because of the tax exempt status of the implementing agencies, the above costs do not include provisions for local, provincial or national taxes. Civil works quantities for the tertiary development component were extrapolated from quantities calculated for about 25% of the area, for which detailed designs have reached an advanced stage. These were compared on a per hectare basis to, and found to be in reasonable agreement with, actual quantities paid for after the construction of some 30,000 ha of tertiary systems on topographically similar areas in the vicinity of the project area. Civil works quantities for the Cisedane drainage component were estimated from profiles and cross-sections of major rivers, for which detailed designs have reached an advanced stage. Similar quantities for the internal drainage systems were extrapolated from those calculated for about 30% of the area, for which detailed designs have been completed. Civil works costs were estimated by applying to the estimated quantities the prevailing unit costs, updated to end-1978 prices, for similar works in the area. Costs of consulting services are based on recent contracts for similar services in Indonesia. The direct costs of expatriate consultants (salaries, overseas allowance, home office overhead and fee) amount to about US$5,500/man-month. Reimbursable expenses (travel, housing, field office overhead, reproduction and printing, and other expenses) average about US$3,500/man-month, for a total cost of US$9,000/manmonth (Annex 1, Table 6). By comparison, total costs of local consultants amount to about US$1,500/man-month. The cost estimates include physical contingencies of about 20% for civil works, lower by about 5% compared to past projects due to the advanced stage of preparation of the project; and about 10% for equipment and services. The cost estimates also include an allowance for expected price increases during project execution (22% of base cost plus physical contingencies), which are based on the following annual inflation rates projected from recent trends noted in civil works contracts for irrigation projects in Indonesia: (a) civil works - 12% in 1979, 10% in 1980, and 8% beyond 1980; (b) equipment and services - 7% per annum.

25 Details of project costs are presented in Annex 1, Table 1 and summarized below: /1 Table 3.2: COST ESTIMATE SUMMARY Foreign Local Foreign Total Local Foreign Total exchange ---- (Rp million) (US$ million) --- % Tertiary development 11,160 8,510 19, Cisedane drainage 5,195 4,940 10, Studies and investigations 1,495 3,030 4, Base cost 17,850 16,480 34, Physical contingencies 3,105 2,785 5, Expected price increases 4,855 4,110 8, Total project cost 25,810 23,375 49, Financing 3.15 The proposed Bank loan of US$77 million would finance the project's full foreign exchange cost (US$56.3 million) and US$20.7 million of local costs. It would cover about 65% of total project costs and about 33% of local costs. The Government would provide the remaining Rp 17,219 million (US$41.5 million) out of annual budget appropriations. /1 The project was appraised and negotiated before the November 15 devaluation of the Rupiah from Rp 415 to Rp 625 equivalent to the US dollar. The figures contained in this report are based on the exchange rate prevailing at appraisal and negotiation. A preliminary assessment of the impact of the devaluation on the local costs of the project (including contingencies) indicates that the local costs could rise when expressed in Rupiah terms from Rp 26 billion to Rp 36 billion and fall in dollar terms from $62 million to $58 million. The base cost of the foreign exchange component, expressed in US dollar terms, would remain unchanged. On this basis, and taking account of revised price contingencies for foreign exchange costs, the proposed loan of $77 million would cover 69% of the total project cost, expressed in US dollar equivalent.

26 Procurement / Except for eight vehicles needed to ensure an efficient start-up of consultants' activities and which would be procured under the consultants' contracts, vehicles and equipment for construction and operation (US$0.6 million) would be procured under international competitive bidding procedures in accordance with Bank Group guidelines. A preference equal to 15% of the c.i.f. cost of the imported goods or the customs duty, whichever is lower, would be extended to qualified local manufacturers in the evaluation of bids. Equipment and spare parts costing less than US$10,000 each and limited to a total of US$0.4 million which are not suitable for international competitive bidding, would be purchased through normal Government procurement procedures which have been found acceptable to the Bank. There are sufficient suppliers of such goods to ensure adequate competition. All contracts for vehicles and equipment exceeding US$100,000 in value would be submitted to the Bank for review before bidding and award The contracts for tertiary structures and staff housing in the Jatiluhur area, which are relatively small and scattered over a wide area, are unlikely to be of interest to international contractors but they would not be precluded from bidding. Drainage works and inspection roads in the Cisedane area, which would be impracticable to group into large packages because they consist of small, widely scattered units with a considerable variety of work among them, would similarly be unattractive to international contractors. These works (US$89 million) would be carried out following local competitive bidding, to which contractors who have been previously prequalified in accordance with Government regulations are normally invited. For tertiary systems, separate contracts would be awarded for structures and earthwork. Local contracting procedures have been reviewed under earlier projects and are acceptable to the Bank. Assurances were obtained from the Government that: (a) except for tertiary structures, the works would be grouped into a number of suitable contracts (minimum value US$250,000) that would enable large local contractors and joint ventures of small local firms to bid within the classes for which Government regulations require them to be prequalified; (b) to minimize late construction starts early in the dry season, invitations to bid for such contracts would be issued as bid documents are completed, and bids would be received and processed without waiting for the project implementation budget (DIP) to be signed, but contracts would be awarded only after the DIP is approved; (c) price escalation clauses, which are not normally provided in local civil works contracts, would be included in contracts extending beyond one year in accordance with the Government's existing regulations and procedures; and (d) for contracts estimated to cost US$1.0 million and above, documents would be submitted to the Bank for review before bidding and award. (For purposes of evaluating price increases, prices of prime commodities are indexed and published by the Central Bureau of Statistics). /1 All costs in this section of the report include contingencies.

27 Disbursements 3.18 Disbursements would be made at the rate of 100% against the foreign exchange cost of directly imported vehicles and equipment, 95% of the ex-factory cost of locally manufactured equipment, and 65% for locally procured imported equipment. Disbursements for the civil works, except tertiary structures, would be at the rate of 70% of total expenditures. Disbursements for mapping, training, consultants' services (including eight start-up vehicles) and tertiary structures would be at 100% of total expenditures. There would be no disbursements against earthwork for tertiary systems. Disbursements for tertiary structures would be made only if the withdrawal application is accompanied by a certificate from the site engineer stating that the tertiary and quaternary canals and drains in the tertiary block have been constructed. Disbursements for civil works for tertiary structures ($27.2 million) and other civil works ($0.9 million) for contracts not subject to ICB (both for Jatiluhur Authority), will be made against statements of expenditure with the supporting documentation to be retained by the Government and made available for inspection during the course of supervision missions. In consultation with the Bank, savings under the project would be used to finance similar additional works in the project areas. The estimated schedule of expenditure on the project, disbursement schedule and allocation of loan proceeds are presented in Annex 1. In order to expedite disbursements, the Government has instituted procedures for prefinancing contracts through the DIP budget. This procedure would be available for implementation of this project and should eliminate conditions which have caused delays in some earlier project. Accounts and Audits 3.19 Assurances were obtained from the Government that PROSIDA, the Jatiluhur Authority and P4S would maintain separate accounts for the project; engage independent auditors acceptable to the Bank to audit these accounts each fiscal year; and submit to the Bank, within six months of the close of each fiscal year, certified copies of the audited financial statements together with the auditor's comments. Environmental Effects 3.20 The project areas have been under cultivation for many years; thus the basic land use would not change appreciably in character, although the agricultural activity would become more stable following implementation of the project. Some areas in Cisedane which are now marshy or annually inundated for varying periods would become more productive and habitable. There is no present occurrence of schistosomiasis in the project areas, and mosquito breeding areas that currently exist would be reduced as a result of the project drainage works.

28 ORGANIZATION AND MANAGEMENT Project Management 4.01 Tertiary development in the Jatiluhur area would be implemented by the Jatiluhur Authority, a semi-autonomous Government corporation currently responsible for the execution of all works under Credits 195/514-IND and part of the works under Loans 1268/1579-IND. The Authority will complete the works under Credit 195-IND and its part of the works under Loan 1268-IND (tertiary development on 25,000 ha) by early 1979; all major contracts have already been awarded under Credit 514-IND. The Authority is well managed and should have no difficulty in executing the works under the project. Day-to-day direction of the work would be done through its field office in Curug and its district offices in the project area. The field organization would be headed by a Project Manager, who would coordinate the work in the three districts. Because of the close coordination required between the Authority's technical staff and the local Government, the Authority would appoint the District Officers (Bupati) in the tertiary development areas as Subproject Managers. These Subproject Managers would take care of coordinating right-of-way acquisition, organizing farmers, forming water-user associations, and ensuring that farmers/ laborers in the tertiary development areas are given the opportunity to work for civil works contractors awarded contracts for tertiary construction in these areas. Working under the Subproject Managers would be Deputy Subproject Managers (Jatiluhur staff), who would be responsible for the technical and administrative aspects of the work. The Authority has successfully employed this type of field organization under Loan 1268-IND, and it is expected to work equally well under this project. The Jatiluhur Authority's management organization is shown in Figure 4.1; the proposed field organization, in Figure The Cisedane drainage component and the drainage studies would be implemented by PROSIDA, an executive body within the DGWRD, which has completed rehabilitation works under Credit 127-IND (now closed) and is wholly or partly executing the works under seven other Bank Group-assisted projects. It is expected to complete two of these other projects early in Since its establishment in 1969, PROSIDA has demonstrated an increasing capability to execute irrigation projects, and has gained the reputation of being one of the most efficient construction agencies in the Ministry of Public Works. Although some of its former staff now hold key positions in other Directorates of the DGWRD, PROSIDA should have no difficulty in carrying out its responsibilities under the project with its present staff. Day-to-day supervision of the work in the Cisedane area would be carried out through PROSIDA's subproject office in Tangerang. The field organization would be headed by a Subproject Manager, a Senior official of the Provincial Irrigation Service, who would coordinate the various activities in the project area. Working under him would be a Deputy Subproject Manager and deputies for surveys, design, construction and administration (PROSIDA staff) who would be responsible for all technical and administrative details. This type of field organization has worked successfully under earlier projects, and is expected to work equally

29 well under this project. The DGWRD management organization is shown in Figure 4.3; the PROSIDA management organization in Figure 4.4; and the PROSIDA field organization in Figure The studies and investigations for future tidal land development projects will be the responsibility of P4S,/1 the executive unit within the DGWRD responsible for tidal land development which is currently supervising similar studies under Loan 1268-IND in the Lagan area in Jambi and the Karang Agung area in South Sumatera. To enable it to undertake the additional studies included in this project, P4S would establish field offices in the vicinity of the Lalang and Mesuji areas in South Sumatera and the Sebangau area in Central Kalimantan, from which field investigations for these areas would be supervised. P4S is staffed by competent and qualified personnel and is expected to have no difficulty in carrying out the additional responsibilities under the project. Assurances have been obtained that the Government would cause PROSIDA, the Jatiluhur Authority and P4S to be adequately staffed at all times with competent and qualified personnel. Training 4.04 The project provides for local in-service training of the Jatiluhur Authority's O&M staff and water management training for members (key farmers) of water-user associations in the various tertiary blocks. At present, nine pilot tertiary units participate in the training program. Under the project this would be extended to the entire area. Training would be carried out in the Jatiluhur Authority's district offices. For some irrigation foremen (Juru), O&M training, using audiovisual aids developed under Loans 1100/ 1434-IND, would be carried out at the Ministry of Public Works Regional Training and Education Center in Surabaya Small- and medium-scale irrigation systems wholly funded by the Government are currently being investigated and designed by DGWRD staff, but the DGWRD relies heavily on consultants for project preparation and detailed engineering of major works being constructed with Bank assistance. A preliminary assessment made by the DGWRD training unit with the assistance of the Center for Education and Training (PUSDIKLAT) /2 in the Ministry of Public Works has indicated that with the expanding work load this heavy reliance on consultants for the detailed engineering of major works may continue for the next five to ten years, due to the limited number of trained DGWRD staff available. These consultants, who are currently predominantly expatriate, are expected to be drawn increasingly from local firms in 'years to come, due to the inclusion of training provisions for local counterparts in most expatriate consultants' contracts for the last three years. Moreover, similar provisions would be made in future DGWRD contracts. However, although the DGWRD will no doubt wish to continue using consultants in order to cope with peak work loads or to undertake specific assignments, the DGWRD is also aiming to reduce its /1 Projek Pembukaan Persawahan Pasang Surut. /2 Pusat Pendidikan dan Latihan Tenaga Kerja.

30 reliance on consultants, and to upgrade the capability of its staff to carry out various aspects of its work. The training unit has started to make an assessment of the long-term training and staffing needs of the DGWRD; to assist this unit in making this assessment and in setting up a training program and the necessary facilities and services consistent with these needs, the services of a training advisor will be funded under the project (para. 3.07). An assurance has been obtained that, by July 31, 1979, a training advisor, whose qualifications, experience and terms and conditions of employment would be satisfactory to the Government and to the Bank would be employed. Agricultural Support Services 4.06 In order to attain the projected benefits in the project areas, agricultural support services need to be strengthened. While this project does not include assistance for any of these services, several ongoing Bank-assisted programs, such as the National Food Crops Extension (NFCE) project (Loan 1267-IND), the Seeds Project (Credit 246-IND) and the Rural Credit project (Credit 827-IND) have been specifically designed to upgrade them. The Bank is also actively discussing with the Government the introduction of other programs designed to further improve agricultural supporting services. These programs include construction of village fertilizer stores, improvement of the management and operation of farmer cooperatives, and initiation of the proposed second agricultural research, agricultural extension and seeds projects. Likewise, domestic fertilizer production will continue to grow as a result of facilities built with Bank Group assistance under Credit 193-IND and Loan 1089-IND, while fertilizer distribution from national to district level is being aided under Loan 1139-IND The Ministry of Agriculture (MOA), Bank Rakyat Indonesia (BRI) and the Directorate-General of Cooperatives (DGC) are the agencies responsible for agricultural supporting services in the project areas. Staff of the Directorate-General of Food Crops (DGFC) in the MOA provide extension services to fam'iners in the project areas. Due to staff shortages, the extension services are mainly confined to farmers participating in the BIMAS program./1 The NFCE project, which is aimed at reorganizing and strengthening the extension staff of DGFC and enabling field extension workers (PPLs) /2 to maintain close contact with farmers, is intended to correct this deficiency. One PPL would cover about 1,700 farm families. The middle level extension workers (PPMs) would supervise the PPLs, while subject matter specialists (PPSs) would support and train PPLs and PPMs at the district level. In the project areas farmers are already benefitting from the training and visit system. /I BIMAS is an acronym for "Bimbangan Massal Swa Sembada Bahan Makanan" which translated literally means mass guidance for self sufficiency in foodstuffs. It is basically a package of agricultural inputs and subsidized production credit to farmers producing food. /2 PPL is an acronym for Penuluh Pertanian Lapangan which means agricultural field extension worker.

31 The BIMAS Secretariat within the MOA would expand the BIMAS program and provide farmers in the project areas with subsidized credit to cover seeds, fertilizers, pesticides, crop spraying, and cost of living expenses. For irrigated rice production, a farmer can currently obtain credit equivalent to an amount up to Rp 37,000 per ha./l The loan is for seven months at 1% interest per month. To be eligible for the loan, a farmer must demonstrate that he either owns or is cultivating land and that he is no more than two years overdue on BIMAS repayments. BRI, which provides credit for the BIMAS program, would increase its field staff at existing village unit (VU) offices, and where necessary, build and staff new village unit offices. Besides providing farmers with production credit through the VU, BRI also currently supplies longer term credit (three to five years) for the purchase of draft animals, ploughs and other required farm equipment. The BIMAS program covers some 70% of the wet and dry-season paddy crop in the Jatiluhur tertiary development area, and about 30% of the wet-season paddy crop in the Cisedane area. Precooperatives (BUUDs) convert to farm cooperatives (KUDs) when proven viable. At each BUUD/KUD, the BRI establishes an office to handle BIMAS loan applications and repayments. Where necessary, the DGC would establish BUUDs/KUDs and village fertilizer stores (kiosks) to handle the increased volume of fertilizer and pesticide distribution at the retail level. The BUUDs/KUDs are equipped with paddy drying floors, grain warehouses, and rice milling facilities. Apart from providing these services, they also act as the Government's rice procurement agents in the village, buying paddy from farmers and then selling paddy or milled rice at the Government's support price to the national rice procurement agency (BULOG). The DGC operates about 250 BUUDs in the Jatiluhur tertiary development area and 35 at Cisedane The National Seeds Corporation at Sukamandi produces limited supplies of certified paddy seeds. These are distributed through BUUDs/KUDs at Rp 150/kg. Most or all available certified seeds in both project areas are supplied by seed growers who obtain their planting material from district seed farms of the provincial agricultural services Increases in demand for fertilizer, certified seed and credit were projected under Credits 195/514-IND and Loan 1268-IND for the Jatiluhur tertiary development area, and Credit 127-IND for the Cisedane area. Further increases in agricultural inputs will be needed in order to optimize the benefits from additional improvements in drainage and irrigation. Based on current BIMAS recommendations for obtaining yield increments from the timely delivery of irrigation water, the demand for fertilizer at full development would rise from its current level of some 43,000 tons to 102,000 tons per year in the Jatiluhur tertiary development area, and from 7,000 tons to 18,000 tons per year in the Cisedane drainage area. While the existing fertilizer distribution system could handle the increased demand, subdistrict roads in the Cisedane area /1 BIMAS Package C for irrigated paddy in 1977/78 using liquid insecticide. For farmers using granulated insecticide or diammonium phosphate fertilizer, the amount increases to about Rp 40,000 and Rp 39,000 respectively.

32 would require repairing and upgrading to facilitate fertilizer distribution at the village level. This will be done under the project. At full development, the annual demand for certified seed would be 1,900 tons in the Jatiluhur tertiary development area and 650 tons in the Cisedane drainage area. To meet these targets, the quality of local seed growers.' production is to be upgraded under the provincial agricultural services' ongoing program. Production credit requirements would also increase after project completion. Annual short-term production credit needs would be around Rp 11,600 million in the Jatiluhur tertiary development area and Rp 2,000 million in the Cisedane drainage area. Farmers currently receive annual BIMAS funds of about Rp 8,500 million in the Jatiluhur tertiary development area, and about Rp 1,200 million in the Cisedane drainage area. While BRI would be able to supply the funds needed, it would have to increase its field staff and establish new village units where necessary, to handle the increased credit flows and avoid delays in processing and issuing of credits. BRI has been gradually improving its services to farmers, and it is expected to continue to provide the required field staff and facilities. Assurances were obtained that the Government would take the necessary steps to ensure that adequate agricultural credit, extension services and inputs (including fertilizers, agricultural chemicals and certified seeds) are made available to farmers at the village level in all project areas and assist in the provision of drying and storage facilities. Operation and Maintenance 4.11 The Jatiluhur Authority would be responsible for the operation and maintenance (O&M) of tertiary systems in the Jatiluhur area during construction. Shortly after construction, responsibility for O&M of these systems would shift to the water-user associations within the systems. The Authority would, however, closely supervise the operation of these systems for one year to ensure that all defects are corrected and needed repairs are made before they are formally turned over to the water-user associations. To properly operate and maintain the systems, each water-user association would appoint a full-time water master (ulu-ulu) and an assistant water master,/l who would allocate the water to the various users on a day-to-day basis and carry out needed maintenance and repairs. To defray the salaries of water masters, as well as the cost of materials needed for maintenance and repairs, the wateruser associations would establish and collect contributions from all beneficiaries. These practices are presently in effect for completed tertiaries and are generally satisfactory. Since the standard of O&M in these systems would be dependent upon the existence of properly functioning water-user associations, assurances were obtained that the Government would take the necessary steps to ensure that: (a) before the start of construction of any tertiary network (about 100 ha) a water-user association would be established to participate in the construction of the network and to operate and maintain it after completion; and (b) promptly when a tertiary network is completed the water-user association would establish and collect from its members contributions adequate to cover sound operation and maintenance costs. /1 Another assistant water master may be required if the system serves more than 100 ha.

33 PROSIDA would be responsible for the operation and maintenance of the Cisedane drainage works and inspection and access roads during construction. For one year following completion of the project, PROSIDA would continue to operate and maintain the works to ensure that all defects are corrected and needed repairs are made before they are formally turned over to the Provincial Public Works, who would thereafter assume responsibility for operating and maintaining them. While arrangements for staffing and funding the operation and maintenance of irrigation and drainage works and inspection roads along canals and drains have been clearly defined under previous irrigation projects, similar arrangements for district and village roads constructed or upgraded to provide access to project works are unclear and have so far been unsatisfactory. Assurances have been obtained from the Government that: (a) by December 31, 1981, it would prepare and furnish to the Bank for its review a program for the maintenance of those district and village roads upgraded or constructed to provide access to project works, together with plans for the appointment of personnel and provision of funds; and (b) by April 1, 1982, it would implement the maintenance program on the completed roads and regularly inform the Bank about the progress of implementation Although the O&M funding of main and secondary irrigation systems had always been a Provincial responsibility, the Provinces have thus far been unable to meet the full funding requirements out of their own revenues. The Provincial O&M budget has been sufficient only to meet salaries of senior irrigation officials down to irrigation foreman (pengamat) level. The amount budgeted by the Provinces has been about Rp 900 to Rp 1,000/ha, with the balance coming in the form of subsidies from the Central Government. Because of these subsidies, there has been considerable improvement in O&M services in the completed and ongoing Bank-assisted irrigation projects. However, there is further need for trained staff, as well as an increase in O&M budgetary allocations for the main and secondary systems. O&M funds allocated to the various subprojects in FY78/79 are in line with those agreed upon during negotiations of Loans 1578/1579-IND, and fund releases during the dry season have been consistent with standing agreements between the Government and the Bank. For FY79/80, the Government proposes to increase the O&M allocation for rehabilitated systems to Rp 4,000/ha, and is considering the employment of additional O&M staff. Assurances were obtained from the Government that: (a) at all times adequate staff are employed and funds allocated for the proper operation and maintenance of the irrigation, drainage and road systems; (b) necessary steps are taken to ensure that at least half of the budgeted O&M funds would be released to the departments or organizations charged with the maintenance of the systems by August 15 of each year and the balance in equal quarterly installments, until the total allocated amounts have been released; (c) to upgrade the standard of O&M services and to effectively utilize the available funds, it would progressively increase the number of qualified O&M personnel in the projects until adequate staff levels established between the Government and the Bank, have been attained; (d) it would inform the Bank: (i) by December 31 of each year of the proposed per hectare O&M budget and the staff requirements for each system; (ii) by June 1 of each following year, the approved O&M budgets, and (iii) by October 1, the staffing provisions.

34 Monitoring 4.14 A program to monitor benefits accruing from the Bank-assisted irrigation and drainage works, together with other social aspects, is currently being implemented under the Sixth Irrigation Project (Loan 1100-IND). As that program expands, it would include this project, with additional required funds to be provided under a future Bank-assisted project. An assurance has been obtained that the Government would ensure that the survey and evaluation of the economic and social benefits of the project would be carried out by the survey and evaluation services financed under Loan 1100-IND. 5. AGRICULTURAL PRODUCTION 5.01 The project would increase agricultural production by improving water control, distribution and utilization of available water supplies through the introduction of tertiary systems on 186,000 ha of paddy land in the Jatiluhur area. It would also provide flood relief to some 5,000 ha of paddy land in the Cisedane drainage area. Secondary crops would benefit from the project, and significant increases in production of both paddy and secondary crops are expected in the project areas. The projections are based on crop performances presently attained in similar production areas. Details of cropping paterns, yields and production, as well as expected changes as a result of the project, are discussed below. Present Cropping Patterns 5.02 Jatiluhur Tertiary Development Area. The entire tertiary development area (186,000 ha) is planted to paddy in the wet season. Of this about 177,000 ha are irrigated, while the remaining 9,000 ha are rainfed. In the dry season, about 149,000 ha are planted to paddy and 15,000 ha to secondary crops./l The present cropping intensity is about 188% Wet-season paddy is generally grown between October and May. Depending on water availability, farmers usually transplant between November and early January and harvest from March to May. In the dry season, paddy is grown between April and September. It is transplanted in April-June and harvested in August-September. Secondary crops are grown between March and October, and are dependent on rainfall and residual soil moisture from the preceding crop. These crops may have to be minimally irrigated if rainfall during the dry season is insufficient Because of intensified agricultural extension efforts and improved water control provided under previous Bank-assisted projects, HYV's are grown on about 80% of the area. Some of the earlier varieties planted were susceptible to brown planthopper damage. Seeds of varieties resistant to the biotypes prevalent in the area are being multiplied and distributed to and planted by farmers in some areas. Paddy yields average 3.5 ton/ha in the wet /1 Crops other than paddy, sugarcane and estate crops; major ones are corn, soybean, groundnut, green beans, vegetables and tubers.

35 season and 3.3 ton/ha in the dry season. The average dry season yield for corn is 0.8 ton/ha (corn is one of the most important secondary crops and is used here as representative of all secondary crops) Cisedane Drainage Area. The 42,000 ha service area of the Cisedane irrigation system, including about 5,000 ha that are poorly drained and subject to flooding, are planted to paddy in the wet season. On annually flooded areas, one to two replantings are often necessary to harvest a crop, and harvesting is sometimes delayed by as much as two to three months. In the dry season, the run-of-the-river supply can support only 16,000 ha of paddy and 2,000 ha of secondary crops on the 37,000 ha non-flooded area. Because of the delayed harvest in the annually flood areas, these areas are normally uncropped in the dry season. The present annual cropping intensity in the Cisedane area is about 143% Wet-season paddy is generally grown from October to March and dry-season paddy from April to September. Wet-season paddy yields average 2.0 ton/ha in the flooded areas and 3.8 ton/ha in non-flooded areas. In the dry season, average yields are 3.4 ton/ha for paddy and 0.6 ton/ha for corn. Future Cropping Patterns 5.07 Jatiluhur Tertiary Development Area. Because of main and secondary system improvements provided under Credit 195-IND, and the strengthening of agricultural support services, about 80% of the area would be planted to HYVs even without the project and the cropping intensity would remain at its present 188%. On completion of tertiary systems in the area, further improvement in water control and distribution would be achieved, resulting in fuller utilization of available water supplies. This would enable farmers to adopt a cropping calendar that would raise the cropping intensity to 215%. This is based on 190% rice cropping intensity and an estimated 25% of the area under secondary crops. However, the area under secondary crops may vary from year to year depending on climatic conditions. Some enterprising farmers would be able to take advantage of the residual soil moisture to grow an additional secondary crop with minimal irrigation. In areas provided with tertiary systems, some farmers are already growing three crops a year. Improved water reticulation would also encourage them to plant HYVs on 90% of the area in both the wet and dry season Cisedane Drainage Area. Without the project, the drainage problem in the area would deteriorate further, and the flooded area would enlarge. However, the cropping pattern is not expected to change and the annual cropping intensity would remain at 143%. With the project, farmers would be able to adhere to the cropping calendar (para. 3.09). Since wet-season paddy is expected to be planted on schedule over the entire area, there would be no delayed harvest; the dry-season paddy area would increase to 20,000 ha, and the areas under secondary crops would increase to 8,000 ha, resulting in an overall cropping intensity of 167% at full development. Further increases in cropping intensity would be constrained by the limited dry-season water supply.

36 Yields and Production 5.09.Jatiluhur Tertiary Development Area. Yields are expected to increase even without the project due to the rehabilitation of the main and secondary systems and the improvement in agricultural support services. Wet-season yields are expected to increase to 3.8 ton/ha for irrigated paddy and to 2.0 ton/ha for rainfed paddy. Dry-season yields would average 3.6 ton/ha for paddy and 1.0 ton/ha for corn. With the project, agricultural improvements in water control and distribution, combined with adequate credit, inputs and effective research and extension services, would raise yields of both paddy and secondary crops; as a result, it is expected that paddy yields will increase to 4.5 ton/ha in the wet season and to 4.3 ton/ha in the dry season, while average yields of secondary crops would be about 1.2 ton/ha. At full development, about five years after the completion of project works, annual incremental production would be 328,100 tons of paddy and 41,400 tons of secondary crops Cisedane Drainage Area. Without the project, no improvement in yields is foreseen in the flooded areas, but yields are expected to rise marginally in the non-flooded areas to 4.0 ton/ha for wet-season paddy, 3.6 ton/ha for dry-season paddy and 0.8 ton/ha for secondary crops. With the project, the mitigation of flooding would allow the entire area to be cropped on schedule, while the improvement in the area's road network would facilitate the flow of agricultural inputs and services. As a consequence, paddy yields are expected to increase to 4.3 ton/ha in the wet season and to 4.2 ton/ha in the dry season. The average yield of secondary crops is projected to rise to 1.0 ton/ha. At full development, annual incremental production would be 49,000 tons of paddy and 6,400 tons of secondary crops The realization of the projected yields is dependent upon the use of improved paddy varieties, certified seeds and appropriate fertilizers and pesticides in the project areas. The introduction of the NFCE project in these areas will play an important role in the organization of farmer groups for extension, crop production and water management. These groups would help in synchronizing cropping patterns and calendars with projected water deliveries, increasing contact between farmers and Government programs, and ensuring efficient use of resources and inputs available to each farmer. Present and future cropping patterns, yields and production in the project areas are shown in Table 5.1. Cropping Calendars 5.12 Figure 5.1 shows the proposed cropping calendar for paddy and secondary crops in the project areas. With the improvement and extension of irrigation and drainage facilities, paddy and other crops can be planted at the correct time, avoiding yield reductions due to planting out of phase. Wet-season paddy would be grown from October to March, with land preparation being carried out in late October to December. Seedlings raised in field nurseries would be sown in October/November and transplanted in late November/ December, with harvesting taking place from late February to early April. Dry-season paddy would be grown from March to August. In areas where farmers can grow only one crop of paddy during the wet season, two crops of corn, or

37 some other fast maturing secondary crops, would be grown. With the development of shorter maturing varieties some farmers would be able to fit in a quick maturing legume between the wet and dry-season paddy crops. This is already being practiced by some farmers in the Jatiluhur area. Apart from climate, the proposed cropping calendars have also taken into account the peak labor demands for each of the field operations. Drying, Storage and Processing 5.13 Farmers sun-dry paddy on the roadside and in house yards and store it in their houses. Insufficient concrete drying floors makes drying of the wet-season crop difficult and losses from rainfall can be considerable. The DGC is helping to overcome the problem by providing loans to BUUDs/KUDs, where necessary, so that they can construct drying floors (para. 4.08). The project areas have sufficient milling capacity to handle current production. About 250 rice mills are operating in the Jatiluhur tertiary development area and 44 in the Cisedane area. Future increases in demand can be met without difficulty by BUUDs/ KUDs and private millers. Most rice milled is medium grade, around 35% broken.

38 Table 5.1: CROPPING PATTERNS, YIELDS AND PRODUCTION Present Future without pro ect Future with project /a Area Yield Production Area Yield Production Area Yield Production (ha) (ton/ha) (ton) (ha) (ton/ha) (ton) (ha) (ton/ha) (ton) Jatiluhur Tertiary Development Wet Season Irrigated paddy /b 177, , , , , ,000 Rainfed paddy 9, ,200 9, ,000 Dry Season Irrigated paddy /b 149, , , , , ,000 Corn /c 15, ,000 15, ,000 47, ,400 Total 350, ,, ,000 Cropping intensity (Z) Present Future without project Future with project /a Flooded Nonflooded Flooded Nonflooded Area Yield Production Area Yield Production Area Yield Production Area Yield Production Area Yield Production (ha) (ton/ha) (ton) (ha) (ton/ha) (ton) (ha) (ton/ha) (ton) (ha) (ton/ha) (ton) (ha) (ton/ha) (ton) Cisedane Drainage Wet Season Irrigated paddy /b 5, ,000 37, ,600 5, ,000 37, ,000 42, ,600 Dry Season Irrigated paddy /b , , , ,600 20, ,000 Corn /c , , , ,600 8, ,000 Total 5,000 55,000 5,000 55, Cropping intensity (%) /a In 1985 for Tertiary Development and 1986 for Cisedane. /b Yield and production figures for paddy at 14% moisture. /c Represents a group of secondary crops, including soybean, groundnut, green beans, vegetables, and tubers.

39 6. MIARKET PROSPECTS, PRICES, FARM INCONIES AND PROJECT CHARGES Market Prospects 6.01 Indonesian rice production has been unable to satisfy demand for many decades. From 1969 to 1976 imports ranged between 0.5 and 1.3 million tons. In 1977/78 imports rose to about 2.3 million tons; however because of an excellent 1977/78 harvest, it has recently been reported that imports during 1978/79 are expected to be no greater than 1 million tons. Riceoriented policies have been a major element of the Government's development strategy in Repelita I and II (1969/70 to 1973/74 and 1978/79) and continue to receive very high priority. As a result of the heavy investments aimed at increasing the domestic supply of rice, production is expected to grow at between 3% and 3.5% p.a. to 1985; this however would still imply an average annual rice deficit of 2 to 3 million tons in 1985 (10% to 15% of the total production)./l Continuation of high investment rates over the next ten years could reduce the average expected annual deficit to 2 million tons in 1990./1 Marketing prospects for paddy should therefore remain eminently favorable in the future Much of the incremental rice production in Jatiluhur and Cisedane would be consumed at the farm level, while the surplus to local requirements would be marketed in the Jakarta urban area. Secondary crop production would mainly be marketed locally Farmers sell their surplus paddy production mainly to private dealers and millers and to cooperatives. The Government's rice procurement authority (BULOG/ DOLOG) maintains a floor price for paddy in the project areas, and the BUUD/KUD, its agent in the villages, buys paddy directly from farmers. The price at which BULOG will purchase rice is currently Rp 74 (US$0.17)/kg for 14% moist paddy at the village. Although prices on the open market are usually higher than the floor price during nonharvest periods, farmers are often forced to sell their paddy below the floor prices during the wet-season harvest. This is due in some instances to inadequate facilities which prevent paddy from being dried to the required 14% moisture content standard. In other cases, farmers are forced to sell their paddy on the open market at a discount because BUUD/KUDs exhaust their credit lines from BULOG and are unable to obtain cash to pay the farmers, who need immediate cash to meet tax payments or to pay off the last season's debts so that they can purchase inputs for the new season. Most farmers sell paddy with about 18-20% moisture content and up to 10% impurities. Practically all farmers have to sell some paddy immediately after harvest to meet their debts, even if they have to repurchase rice later for consumption. BULOG, through its subsidiary DOLOG, also maintains rice and paddy storage facilities at the provincial level. Farmers sell their secondary crop production in village and subdistrict markets. Facilities at these markets are being upgraded where necessary under the INPRES program. Some BUUD/KUDs are disseminating information on market prices to their members. /1 "Supply Prospects for Major Food Crops", Bank draft report, June 1978.

40 Prices 6.04 For both the farm budget and economic analysis, farm inputs and outputs have been valued at end-1978 prices. For rice, corn and fertilizers, these prices were derived from the Bank's Commodity Division's forecasts for world market prices, and adjusted for transportation costs. The remaining inputs not traded on the international market have been expressed in terms of actual farmgate prices. Only an estimated 10% of rice production from the project areas would be milled into high grade rice (5% brokens); 60% would be medium-grade (25-35% brokens); and 30% would be low-grade (42%). Using this quality mix and the world market price forecasts, the equivalent economic farmgate price for paddy would rise from US$163/ton in 1979 to US$207/ton in 1990 (in terms of end-1978 constant dollars) in the project areas. Historically, the Government has followed a policy of keeping consumer food prices low by selling imported rice below its cost and keeping domestic floor prices low. To mitigate the effect of this policy on farm income, the Government has simultaneously subsidized fertilizer and pesticide. In , however, the Government substantially raised domestic paddy prices to encourage rice production. This change in policy, combined with the fall of world prices from the record levels of , brought farm-gate prices fairly close to world market levels. Thus, the floor price for paddy was Rp 70/kg in mid- 1978,/l as compared with an imputed economic price of Rp 80/kg. It is estimated that sub-standard cleaning and drying and market imperfections are presently reflected in a financial farm-gate paddy price averaging Rp 60/kg in the project area. Assuming the continuation of these imperfections, the financial farm-gate price would be around Rp 75/kg in Similarly, the price of fertilizers (both urea and TSP) would rise from Rp 70/kg in 1979 to Rp 88/kg in 1990 (in end-1978 prices). Table 6.2 gives all present and future prices used in the farm budgets and economic analyses. Farm Incomes 6.05 For farm income analysis of tertiary development in Jatiluhur, farm models have been prepared for three typical farm sizes (0.2, 0.4 and 1.5 ha). For the drainage project in Cisedane, one representative farm has been considered for the flooded conditions and one for the non-flooded conditions, both of 0.5 ha. Details of the estimated incomes for different farm sizes are presented in Annex 2, Table 4. Land use and cropping patterns for the present conditions broadly reflect averages for cultivated lands in the project areas. For the analyses, corn represents a composite grouping of secondary crops. Farm budgets are calculated according to cash flows. Labor costs include only hired and harvest labor, not farm family labor, and were determined for non-harvest periods by calculating the excess of total monthly labor requirements over an estimated 40 man-days of family labor per farm per month. Hired farm labor is costed at Rp 400/day. At present annual land taxes (IPEDA) average Rp 7,000/ha in Jatiluhur and Rp 3,500/ha in Cisedane. At full development they would reach an estimated Rp 13,000/ha in Jatiluhur /1 For 1978/79 it was raised to Rp 74/kg paddy.

41 and Rp 8,000/ha at Cisedane. With the project, farmers would also contribute a charge for the operations and maintenance of tertiary and quarternary systems. This may amount to about Rp 3,500/ha. Sharecropping is extensive in both project areas, and farm incomes have been calculated for both owneroperators and sharecroppers. Except for the landlord paying the land tax, and the sharecropper and his family providing the labor, the landlord and sharecropper generally equally divide gross production less harvesting and other production costs. Farm families in both areas also earn considerable off-farm income from either skilled (carpentry, stone masonry, local public official) or unskilled work, and from roadside trading. Based on farmer interviews in the project areas, off-farm family earnings have been estimated for the present and for the future with the project No reliable income data are available for the landless laborers who live in the project areas. However, assuming two full-time workers per family; an average wage rate of Rp 300/day; and 200 work days/year/worker, the annual income of a landless family can be no more than Rp 120,000 or US$290. Since employment opportunities are limited, many families probably earn less. Benefits expected to accrue both to farm families and to landless laborers under the project are discussed in para Project Charges 6.07 Irrigators in Indonesia pay a land tax (IPEDA) and, depending on the intensity of on-farm irrigation development, water charges for the operation and maintenance of the irrigation system below the secondary turn-out. IPEDA is collected by village head, and turned over to local and provincial administrations for use in public services. However, it can be considered a direct project tax which contributes towards the operation and maintenance, plus capital repayments, of the main irrigation system. Since IPEDA is assessed as a percentage of the value of production, the amounts collected would increase as crop yields rise in response to the project. A Government inter-ministerial committee has recommended that part of this increase in IPEDA should be used to cover annual operating and maintenance costs of the irrigation works that were rehabilitated or constructed. Additionally, as a result of a Government decision to tie disbursements under its local infrastructure development program (INPRES) to IPEDA collection peformance, IPEDA collection rates have improved markedly. At present, up to 10% of the IPEDA rate is used for O&M of the main and secondary systems. The Central Government, however, provides the balance of funds (90% or more), in the form of subsidies to the Provinces. To ease the burden on the Central Government, the Government is considering ways of increasing O&M funding. To this end, assurances were obtained that by June 30, 1980, the Government would prepare and furnish to the Bank for comment, a study to: (a) determine the level of funds necessary to ensure adequate operation and maintenance of irrigation systems financed by the Bank and the Association; (b) investigate sources of funds and mechanisms to ensure timely availability of such funds; and (c) recommend appropriate levels of direct and indirect contributions including, among others, IPEDA contributions from the beneficiaries of irrigation.

42 Water-user associations at the tertiary canal level in Indonesia have traditionally contributed a portion of their crop to the water master (ulu-ulu), or he has received the use of an area of village rice land in payment for his services. As tertiary and quaternary canal and drain develoment has occurred under Bank-assisted irrigation projects, the irrigators have increased their contributions to cover all operation and maintenance costs of the tertiary/quaternary unit. The amount of this water charge varies according to the degree of development of the tertiary unit. Present and expected future levels of IPEDA and water charges are as follows both project areas (in constant end-1978 prices): PROJECT CHARGES AVERAGED OVER PROJECT AREAS Present /a With project /b Increment (Rp/ha)/c Jatiluhur IPEDA 7,000 13,000 6,000 Water charges 500 4,000 3,500 Total 7,500 17,000 9,500 Cisedane /d IPEDA 2,000 8,000 6,000 Water charges - 1,500 1,500 Total 2,000 9,500 7,500 /a Present and future "without project" charges would remain the same. /b With project refers to full agricultural development (1986). /c In constant end-1978 prices. /d Inundated areas only Assurances have been obtained that, following completion of project works, the Government would, through the IPEDA, establish and collect charges on irrigable agricultural land (or on users of the land) serviced by the irrigation systems rehabilitated, constructed or modified under the project. The charges would be at levels to (a) cover the cost of sound O&M necessary to provide irrigation and drainage for the land; and (b) recover over the useful life of the irrigation system a reasonable portion of the capital expenditures attributable to such system, consistent with the capability of

43 the beneficiaries to pay. The operation and maintenance costs and capital expenditures for facilities and services which are common also to other water uses shall be apportioned among the various users in an equitable manner. Once every two years the Government will furnish to the Bank for its comments the IPEDA rates established and collected for all classes of irrigable agricultural land In determining the extent of cost recovery and the relation of project charges to project benefits, direct cost and rent recovery indices have been calculated. The direct cost recovery /1 indices are 71% for the Jatiluhur tertiary development subproject and 3% for the Cisedane drainage subproject. The cost recovery is appropriate for tertiary development, but is low for Cisedane, due to the fact that it would not be possible to levy project charges on farmers in areas not subjected to flooding but who would benefit from road improvements. Direct rent recovery indices were calculated for owner-operators and sharecroppers and for 0.2 ha, 0.4 ha and 1.5 ha flooded and non-flooded farms in Cisedane (Table 6.4). Tertiary development rent recovery indices would vary from 9% to 24%, whereas in Cisedane they are 7% and 3% for owner-operators and sharecroppers of flooded farms, and nil for non-flooded farms where benefits are indirect. Although these recovery indices are low, farmers in these areas are poor Besides project charges, farmers and sharecroppers would pay some 10% of gross production in village taxes, and contribute to the social life of the village through religious taxes, compulsory feasts and by allowing village members to participate in the harvest. While farmers benefitting from improved irrigation are better off than others, in particular dryland farmers, their incomes are already low. Some 90% of farmers in the project area have per capita incomes less than the absolute poverty level (about US$130 per capita per annum). /1 Ratio of present value of incremental revenue (IPEDA and water charges) to present value of incremental financial costs, both calculated at 10% discount rate.

44 Table 6.1: PRICE STRUCTURE FOR FOOD CROPS AND FERTILIZERS Food crop and Fertilizer prices /a '000 Rp/ton US$/ton '000 Rp/ton US$/ton Rice Export price, Thai, 5% broken, f.o.b. Bangkok Quality adjustment /b Ocean freight and insurance Port handling, storage and transport to wholesaler Handling, transport mill to wholesaler Rice ex-mill, project area Paddy equivalent (63% recovery) Milling cost less value of by-product Drying and cleaning Handling, transport to mill Farm-gate price of paddy Corn Export price, f.o.b. US gulf ports Ocean freight and insurance Port handling Corn price, on trucks Transport, wholesalers to wharf Transport, farm to wholesalers Farm-gate price Urea World export price, f.o.b. Europe Ex-factory price, Palembang /c Handling and distribution to retail level Transport to farm Farm-gate price TSP World export price, f.o.b. Florida Ocean freight and insurance Handling, distribution to retail level Transport to farm Farm-gate price /a Calculated at a shadow exchange rate of US$1.00 = Rp 490. /b Assumed rice milling standards: 10% high quality (5% brokens); 60% medium grade (25-35% brokens); 30% lower quality (42% brokens). The resulting conversion factor applied to high quality rice is /c Indonesian urea sells in Asia and enjoys a transport premium over European exports estimated at US$15 per ton.

45 Table 6.2: INPUT AND OUTPUT PRICE SUMMARY Financial Economic Financial Economic Crops (Rp/kg) Paddy Corn Seeds (Rp/kg) Rice - local HVY Corn Fertilizer (Rp/kg) Urea TSP Other Inputs Zinc phosphide (Rp/kg) 2,300 2,700 2,300 2,700 Agrochemicals (Rp/l) 900 4, ,100 Animal labor (Rp/day) 1,000 1,000 1,000 1,000 Farm Labor (Rp/man-day)/a Land preparation Planting Crop management Harvesting 600-1, , /a Except for harvest, female labor usually earns half the amounts shown.

46 Table 6.3: SUMMARY OF FARM BUDGETS Crop Income Off-farm Income Total Farm Income Per Capita Income Family Present Future Present Future Present Future Present Future Farm type size (Rp'000) (US$) ---- Jatiluhur Tertiary Development 0.2 ha ha ha Cisedane Drainage Flooded farm X Nonflooded farm Note: All income date are rounded to the nearest Rp 5,000 and US$5. For each farm type, the top line refers to owner-operator, the second line to sharecroppers.

47 Table 6.4: RENT RECOVERY (Rp '000) JATILUHUR TERTIARY DEVELOPMENT CISEDANE DRAINAGE 0.2 ha Farm 0.4 ha Farm 1.5 ha Farm Flooded Farm Non-flooded Farm Owner- Share- Owner- Share- Owner- Share- Owner- Share- Owner- Share- Incremental values operator cropper operator cropper operator cropper operator cropper operator cropper Gross value of production Less: Cash production costs Harvesting costs /a 13/a Equals: Net cash income Less: Imputed value of family labor Imputed value of management Allowance for risk General taxes Equals: Project rent Rent as % of net cash income Land tax I Water charge (O&M) Total direct charges Rent recovery index (%) n.a. Farm income per capita (US$) Absolute poverty: US$ 95 (1975) GNP per capita: US$300 (1978) /a Includes other hired labor.

48 BENEFITS, JUSTIFICATION AND RISKS 7.01 By providing improved water control, distribution and drainage, the project would increase crop yields and production on 186,000 ha in Jatiluhur and would directly benefit some 346,000 farm families or 1.9 million people; through the provision of additional employment opportunities, it would indirectly benefit some 61,000 landless laborers' families, or 336,000 people. By increasing dry season irrigation from 149,000 ha at present to 167,000 ha (rice only) at full project development, it would create a demand for an additional 10.7 million man-days of farm labor per year,/l equivalent to some 45,000 full-time additional jobs annually. In the Cisedane area, improved drainage would eliminate flooding over an average 5,000 ha, enabling some 10,000 farmers to follow improved agricultural practices during the wet season and produce some dry season crops. Farm labor demand would correspondingly increase by 430,000 man-days per year, equivalent to 1,800 full-time jobs annually. In addition, improved transportation infrastructure needed for construction and O&M of drainage works would substantially benefit the whole Cisedane area; in particular, agricultural production would be stimulated because of a better supply of inputs and marketing of produce and because extension staff would be able to work more effectively. Overall incremental farm labor demand/l in the Cisedane area is estimated at 1.8 million man-days per year, equivalent to 7,500 full time annual jobs, which would partly benefit the landless population of about 25,000 families Beneficiaries. At present some 90% of project farmers have per capita incomes below the estimated absolute poverty level /2 and therefore belong to the target poverty population. At full project development this proportion would be lowered to about 80%. About 60% of project farm benefits would accrue to the target group of poor farmers; 25% accruing to sharecroppers and 35% to owner-operators Benefits. Expected future crop yields and production with and without the project are discussed in Chapter 5. Chapter 6 presents the farm-gate prices for inputs and outputs, based on the Bank's commodity price forecasts for rice, corn and chemical fertilizers, and domestic prices for other commodities. Annex 2, Tables 2 and 3 give the expected crop production costs and labor requirement/ha; Table 7.1 shows the expected gross and net crop returns/ha (without accounting for labor), the total expected agricultural benefits at full agricultural development for the project areas, and summarizes net agricultural benefits for each project area Foreign Exchange. Due to the existence of import taxes, quantitative restrictions and export subsidies, the official exchange rate of US$1.00 = Rp 415 does not represent the true value to the economy of foreign exchange used in carrying out the project, and saved through increased grain production. A standard conversion factor of 0.85 (shadow exchange rate of US$1.00 = Rp 490) was therefore used in the economic analysis. /1 Future with project compared to future without project. /2 Based on an estimated absolute poverty level (in 1978 prices), of US$130 per capita per annum.

49 Labor Pricing. As in most areas in Java, population pressure is considerable in the project areas. This is reflected in the large proportion of landless population (up to 20% in Cisedane) and small average farm sizes (about 0.5 ha) which compel farm laborers to seek additional off-farm employment. As a result, labor supply is overabundant and wages are low, averaging less than Rp 400 per man-day; unemployment is nevertheless considerable and economic wages have consequently been assessed at about 50% of market values (Rp 200 per man-day) as for similar Bank-assisted projects in Indonesia. Given the low market wages, variations in this coefficient would only have negligible effects on the rate of return (para. 7.10) Investment Costs. Economic costs of construction are calculated from the base cost and physical contingencies (para. 3.14, Annex 1, Table 1) by shadow-pricing foreign exchange (para. 7.03) and unskilled labor (para. 7.04). Provision has been made for incremental investment required for agricultural supporting services (drying floors, storage, cooperative buildings, etc). The following table gives the details of economic costs: Jatiluhur Tertiary Development Cisedane Drainage Base Cost /a Economic Cost Base Cost /a Economic Cost (Rp billion) Foreign exchange Unskilled labor Other local costs Additional infrastructure Total /a Including physical contingencies Development Period. In Jatiluhur, full agricultural development of a tertiary unit would be achieved over five years after completion of the works with intermediate years showing incremental benefits of 20%, 40%, 60% and 80%. The build-up of benefits in the analysis is based on this assumption and the expected construction schedule (Figure 3.1). In Cisedane, because flooded areas form a pattern of scattered patches, benefits are also assumed to accrue according to the construction schedule. After drainage works are completed for a sub-area, full agricultural development is expected to be completed over four years, intermediate development following percentages of 0%, 50% and 75% Economic Rates of Return. Using the foregoing assumptions and discounting costs and benefits over 30 years the economic rates of return are 52% for Jatiluhur tertiaries and 16% for Cisedane drainage (Table 7.3). The weighted average "rate of return" for the entire project would be 41%.

50 Sensitivity Analysis. Sensitivity analysis was used to determine which variables would be most crucial to the success of the project. To that end crossover values for a 10% discount rate were calculated for a number of variables. The crossover value is the value of the variable tested for which the project's net present value, calculated at 10% discount rate, is zero, or, equivalently, the value beyond which the economic rate of return would be below 10%. Therefore, the greater the difference between the crossover value and the value assumed in the analysis, the less sensitive the economic rate of return is to the tested variable Crossover values shown in Table 7.4 confirm that tertiary development allows substantial yield increases at relatively low cost; in the analysis, the yields have been assumed to increase by 600 kg/ha over a five year development period, but an increase of 260 kg/ha would be sufficient to justify the project. Sensitivity to rice prices is naturally of the same order (with a security margin of more than 50%); assumptions regarding cropping intensities have minimal bearing on project justification; secondary crops only account for 4% of benefits and with unchanged cropping intensities about 60% of estimated benefits would be realized, with an economic rate of return in excess of 40%. For both projects, shadow pricing assumptions appear to be of secondary importance. Although it has a lower economic rate of return, the drainage project is not overly sensitive to individual assumptions; in particular, future world prices of rice could be lower than present prices (in real terms) and leave the rate of return above 10%. Moreover benefits accruing to non-flooded farms could be reduced by 70%. Finally, an attempt to separate drainage benefits and road benefits could be conducted as follows: a rural roads project would be considered first with capital costs corresponding to the cost of roads in the present project (including engineering, administration and contingencies, 49% of total cost) and yielding the benefits expected from non-flooded farms (47% of total benefits); the drainage works would be considered in a second stage and would only be credited with the flooded farm benefits. The economic rate of return for both projects would be about 16%, as for the original project, because costs and benefits of drainage and roads would be allocated to the separate projects in similar proportions Risks. No major management or organizational problems are expected in the implementation of the project. Problems encountered previously in tertiary development projects are not expected to arise here because of accumulated experience and good management performance of the Jatiluhur Authority. Rapid inflation over the last several years led to sizeable cost overruns on projects initiated in the early 1970s. Inflation is a continuing problem; however, the provisions for price increases are greater for this and other projects recently financed by the Bank Group than in earlier projects.

51 Table 7.1: ECONOMIC BENEFITS Production per Hectare Project Area Production Farm-gate Gross Production Gross Gross Imputed Total farm Area Yield price value cost margin margin labor cost income ('000 ha)(ton/ha)(rp'000/ton) (Rp'OOO) (Rp billion) Jatiluhur Tertiary Development Future Without Project Wet Season Irrigated paddy Rainfed paddy Dry season Irrigated paddy Corn Total Cropping intensity: 188% Future With Project Wet Season Irrigated paddy Dry season Irrigated paddy Corn Total 400 Cropping intensity: 215% Project Benefits 25.2 Cisedane Drainage Future Without Project Wet Season Irrigated paddy Rainfed paddy Dry season Irrigated paddy Corn Total Cropping intensity: 143% Future With Project Wet Season Irrigated paddy Dry season Irrigated paddy Corn Total Cropping intensity: 167% Project Benefits 3.5

52 Table 7.2: TOTAL MONTHLY CROP LABOR REQUIREMENTS ('000 man-days) Area ('000 ha) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Jatiluhur Tertiary Development Wet Season Rainfed rice P ,530 W ,620 Irrigated rice P 177 2,655 4,248 7,965 1,593 1,947 7,965 9,027 35,400 W 177 3,363 5,133 8,673 1,770 1,947 8,319 9,735 38,940 W 186 3,720 5,766 9,858 2,046 2,046 8,928 10,416 42,780 Dry Season Irrigated rice P 149 1,192 7,152 6,407 2,235 2,235 6,109 2,980 28,310 W 149 1,192 7,152 7,003 2,831 2,831 7,003 3,278 31,290 W 167 1,336 8,183 8,016 3,340 3,340 8,517 4,008 36,740 Corn P ,200 W ,200 W ,230 Total P 350 2,808 4,329 9,505 9,048 6,608 2,460 2,370 6,319 3,055 2,262 8,316 9,360 66,440 W 350 3,525 5,223 10,240 9,252 7,213 3,056 2,966 7,213 3,353 2,262 8,670 10,077 73,050 W 400 3,720 5,766 11,644 10,605 8,298 4,139 3,810 9,222 4,290 2,892 8,928 10,416 83,750 Cisedane Drainage Wet Season Flooded irri- P ,250 gated rice W ,250 Nonflooded irri- P , ,887 1,887 7,400 gated rice W , ,924 1,924 7,770 W ,218 2, ,142 2,142 9,240 Dry Season Nonflooded irri- P ,960 gated rice W ,120 W , ,200 Corn P W W Total P ,322 2, ,855 2,897 11,750 w 60 1,042 1,428 2, ,908 2,950 12,280 W 70 1,118 1,738 3, ,162 3,102 14,080 Note: P = present W = future without project W = future with project

53 Table 7.3: ECONOMIC COSTS AND BENEFITS (US$ million) Costs Project Year Capital O&M Total benefits Jatiluhur Tertiary Development Present value at 10% discount rate % discount rate % discount rate Economic rate of return: 52% Cisedane Drainage Present value at 10% discount rate % discount rate Economic rate of return: 16%

54 Table 7.4: SENSITIVITY ANALYSIS Appraisal value Crossover value % change Jatiluhur Tertiary Development Increase in paddy yields (kg/ha) World price of rice /a (US$/ton) Total construction cost (US$ million) Pure benefit delay n.a. 17 yrs n.a. Shadow foreign exchange rate /b Shadow wage rate (coefficient) ,500 Cisedane Drainage Increases in paddy yields (kg/ha) Wet season paddy Dry season paddy Number of nonflooded farms benefitting from the project 75,000 22, World price of rice /a (US$/ton) Total construction cost (US$ million) Pure benefit delay n.a. 3 yrs n.a. Shadow foreign exchange rate /b Shadow wage rate (coefficient) /a Thai, 5% brokens, f.o.b. Bangkok. /b Rupiah equivalent of US$1.00.

55 AGREEMENTS REACHED AND RECOMMENDATION 8.01 During negotiations, agreement was reached with the Government on the following points: (a) consultants acceptable to the Bank, including those to assist in preparing detailed designs and construction drawings for the first 75,000 ha of tertiary systems, would be engaged by July 31, 1979 on terms and conditions satisfactory to the Bank; by July 31, 1980, the consultants engaged for the first 75,000 ha of tertiary systems would be employed to assist with the remaining 75,000 ha; and a training advisor, whose qualifications, experience and terms and conditions of employment are satisfactory to both the Government and the Bank, would be employed by July 31, 1979 (paras 3.07 and 4.05); (b) except for tertiary structures, the works to be constructed would be grouped into a number of suitable contracts (minimum value of US$250,000) that would enable large local contractors and joint ventures of smaller local firms to bid within the classes for which Government regulations require them to be prequalified; to minimize late construction starts early in the dry season, invitations to bid on such contracts would be issued, and bids would be received and processed as soon as tender documents are completed, without waiting for the DIP to be signed, but contracts would be awarded only after the DIP is approved; price escalation clauses would be included in civil works contracts extending beyond one year (para. 3.17); (c) PROSIDA, the Jatiluhur Authority and P4S would maintain separate accounts for the project; engage independent auditors acceptable to the Bank to audit these accounts each fiscal year; and submit to the Bank, no later than six months after the end of each fiscal year, certified copies of the audited financial statements, together with the auditor's report (para. 3.19); (d) the Government would cause P4S, PROSIDA and the Jatiluhur Authority to be adequately staffed at all times with competent and qualified personnel (para. 4.03); (e) the Government would ensure that adequate agricultural credit, extension services and inputs (including fertilizers, agricultural chemicals and certified seeds) are made available to farmers at the village level in all project areas and would assist in the provision of drying and storage facilities (para. 4.10); (f) a water-user association would be formed for each tertiary network to participate in its construction and to operate and maintain it after its completion; each association would collect from its members contributions sufficient to cover the sound operation and maintenance of the network (para 4.11);

56 (g) by December 31, 1981, the Government would prepare and furnish to the Bank for its review, its program for the maintenance of access roads upgraded or constructed under the project, and its plans for staffing and provision of funds for the program; and by April 1, 1982, it would implement the program on the completed roads and shall regularly inform the Bank about the progress of such implementation (para. 4.12); (h) in order that all facilities of the irrigation systems rehabilitated or constructed with financial assistance of the Bank Group are properly maintained, the Government would: (i) ensure that at all times adequate staff are employed and O&M funds, adjusted to keep pace with inflation and actual needs, are allocated to each system; (ii) by August 15 of each year, make available to the organizations/- departments charged with maintenance of the systems, not less than one half of the annual budgeted O&M funds, and the balance in quarterly installments until all the allocated funds have been released; (iii) take appropriate steps to progressively increase the required number of qualified O&M staff until adequate staff levels, established between the Government and the Bank, have been attained; and (iv) inform the Bank: by December 31, of each year of the proposed cost per ha for O&M budgets and staff requirements for each system; by June 1 of each following year, the approved budgets; and by October I of such year, the staff provisions (para 4.13); (i) the survey and evaluation of the economic and social benefits of the project would be carried out by the survey and evaluation services provided under in the Sixth Irrigation Project (Ln.llOO-IND) (para. 4.14); (j) by June 30, 1980, the Government would prepare, and furnish to the Bank for its information and comments, a study to: (a) determine the level of funds necessary to ensure adequate operation and maintenance of irrigation systems financed by the Bank and the Association; (b) investigate sources of funds and mechanisms to ensure timely availability of such funds; and (c) recommend appropriate levels of direct and indirect contributions including, among others, IPEDA contributions from the beneficiaries of irrigation (para 6.07); and (k) on completion of the tertiary development and drainage works, the Government, through the IPEDA, would establish and collect charges on irrigable agricultural land, or on users of the land, serviced by the irrigation systems constructed or upgraded under the project. Taking account of the capability of the beneficiaries to pay, these charges would be at levels to ensure sound O&M practices and, over the useful life of the system, to recover a reasonable portion of capital expenditures attributable to the system. Capital expenditures and O&M costs which are also common to other water uses will

57 be apportioned in an equitable manner among the various users. Once every two years, the Government will furnish to the Bank, for its comments, the IPEDA rates established and collected for all classes of irrigable agricultural land (para 6.09) With the above assurances, the project would be suitable for a Bank loan of US$77 million, with a 20-year maturity including a grace period of 5 years. The Borrower would be the Republic of Indonesia.

58 ANNEX I Table I INDONESIA IRRIGATION XII Cost Estimate /a Foreign Base Local Foreign Total Local Foreign Total exchange cost Rp million US$ mlion () I. Jatiluhur Tertiary Development Civil works Tertiary structures 3,570 4,400 7, Tertiary canals 4,770 3,195 7, OM staff housing Subtotal 8,545 7,720 16, Land acquisition I Vehicles and equipment Consulting services /b 1, , Training Administration & overhead 1, , Base cost 11,160 8B _, Physical contingencies /c 2,035 1,535 3, Expected price increases 3,275 2,450 5, Total 16,470 12,495 28, II. Cisedane Drainage Civil works Excavation and fill /d 1,540 1,575 3, Outlet improvements _ _ Dredging Control structures Ie Check structures Tertiary outlets Bitumen - surfaced roads , Gravel - surfaced roads , New bridges Rehabilitation of existing bridges Fishpond outlets Pipe and box culverts Subtotal 4,035 8,23 8J_ Consulting servir,pd Vehicles and equipment Land acquisiteion Administration & overhead Base cost 5,195 4,940 10, Physical contingencies /c , Expected price increases 1,410 1,330 2, Total 7,555 7,185 1_ III. Studies and Investigations Mapping Consulting services Flood control & drainage studies , DGWRD training needs Tidal lands development 625 1,160 1, Equipment Subtotal 1,245 2,990 4, Administration & overhead Base cost 1, , Physical contingencies /c Expected price increases Total 1, , GRAND TOTAL 25,810 23,375 49_ /a Based on end-1978 prices and exchange rate of US$1.00 = Rp 415. /b Based on billing rate of about US$5,500/man-month and reimbursable expenses of about US$3,500/man-month for foreign consultants and billing rate of about US$1,200/man-month and reimbursable expenses of about US$300/man-month for local consultants. /c About 20% for civil works and 10% for equipment and services. Id Excavation of rivers and drains, embankment construction and disposal of excess excavated material. /e Includes foot bridges.

59 ANNEX 1 Table 2 INDONESIA IRRIGATION XII Expected Price Increases Indonesian Fiscal Year /a Total 1979/ / / /83 increase Annual inflation rate, % /b Civil works Equipment and services US$ million - I. Jatiluhur Tertiary development Civil works Equipment and services Total II. Cisedane Drainage Civil works Equipment and services Total III. Studies and Investigations Equipment and services GRAND TOTAL /a April 1 - March 31. lb Projected from actual inflation rates experienced in a large number of civil works contracts in Indonesia and based on the assumption that inflation rates for local currency component equal those for indirect foreign exchange costs.

60 ANNEX 1 Table 3 INDONESIA IRRIGATION XII Schedule of Expenditures Indonesian Fiscal Year /a Total 1979/ / / /83 expenditure US$ million I. Tertiary development Civil works Equipment and services Base cost Physical contingencies Expected price increases Total II. Cisedane Drainage Civil works Equipment and services Base cost Physical contingencies Expected price increases Total III. Studies and Investigations Equipment and services Base cost Physical contingencies Expected price increases Total GRAND TOTAL /a April 1 - March 31.

61 ANNEX 1 Table 4 INDONESIA IRRIGATION XII Proposed Allocation of Proceeds of Loan Cost Loan Total Foreign amount US$ million I. Civil Works (a) Tertiary Development (Jatiluhur) Structures Earthwork Physical contingencies Expected price increases Subtotal /a (b) Other Civil Works Jatiluhur Authority PROSIDA Physical contingencies Expected price increases Subtotal /b II. Vehicles and Equipment Jatiluhur Authority PROSIDA /c P4S Expected price increases Subtotal /d III. Consulting Services, Mapping and Training Jatiluhur Authority PROSIDA P4S Expected price increases Subtotal /e IV. Unallocated Balance of physical contingencies Balance of expected price increases Land acquisition Administration and overhead Subtotal Total /a Disbursements shall be at 100% of total expenditures for structures. /b Disbursements shall be at 70% of total expenditures. /c Includes about US$15,000 worth of equipment for DGWRD training advisor. /d Disbursements shall be at 100% of foreign expenditures for directly imported goods and equipment, 95% of ex-factory costs for locally manufactured equipment, and 65% of total expenditures imported goods procured locally. /e Disbursements shall be at 100% of total expenditures.

62 ANNEX 1 Table 5 INDONESIA IRRIGATION XII Estimated Schedule of Disbursements IBRD fiscal year and semester Cumulative disbursements (US$ million) FY79 Second 0.5 FY80 First 4.5 Second 16.0 FY81 First 28.5 Second 41.0 FY82 First 54.0 Second 61.5 FY83 First 68.5 Second 73.5 FY84 First 77.0

63 - 55- ANNEX 1 Table 6 INDONESIA IRRIGATION XII Breakdown of Costs of Consulting Services /a Expatriates Local consultants Foreign Local Total Local Item currency currency cost currency US$/man-month Billing Rate Basic salary 2,200-2, Social benefits Home office overhead 1,760-1, Overseas allowance /b Net fee Subtotal 5,500-5,500 1,200 Reimbursable Expenses Mobilization and travelassociated expenses International travel Mobilization and positioning Subsistence allowance Miscellaneous expenses Subtotal Duty station expenses Local duty travel Per diem Field office overhead Housing and utilities - 1,200 1, Transport /c Subtotal - 2,650 2, Total 6,350 2,650 9,000/d 1,500/e /a Based on 11 consultants' contracts in the last two years. Costs have been updated to end-1978 prices. /b Field allowance for local consultants. /c Includes driver, fuel and lubricants, and depreciation of vehicles. /d May vary between US$8,000 and US$10,000/man-month depending upon the nationality of expatriate. /e Applies to engineers and surveyors; total cost for draftsmen and technicians is about $500/man-month.

64 ANNEX 1 Table 7 INDONESIA IRRIGATION XII Vehicles and Equipment Quantity Unit cost Total cost US$ million I. Jatiluhur Tertiary Development Vehicles 5 12,500 62,500 Motorcycles ,500 Bicycles ,000 Survey equipment - L.S. 40,000 Subtotal 145,000 II. Cisedane Drainage Vehicles 6 12,500 75,000 Motorcycles ,750 Motor grader with scarifier (180 HP) 1 100, ,000 Spare parts - L.S. 15,250 Hydrological and survey equipment - L.S. 37,500 Subtotal 237,500 III. Studies and Investigations DGWRD training Vehicle 1 12,500 12,500 Office equipment - L.S. 15,000 Subtotal 27,500 Tidal studies Boats, 16' (outboard) 6 12,500 75,000 Boats, 24' (outboard) 2 25,000 50,000 Outboard motors 4 5,000 20,000 Spare parts - L.S. 10,000 Vehicles 9 12, ,500 Engineering equipment - L.S. 80,000 Survey equipment - L.S. 10,000 Office equipment - L.S. 20,000 Office supplies - L.S. 18,000 Field supplies - L.S. 17,000 Subtotal 412,500 Total 822,500

65 ANNEX 1 Table 8 INDONESIA IRRIGATION XII Civil Works, Quantities, Unit Prices and Costs Quantity Unit Unit price Cost /a (Rp) (Rp million) I. Jatiluhur Tertiary Development Structures /b 16,700 each 477,000 7,970 Earthwork 19,900,000 cu m 400 7,965 0&M staff housing 10,080 sq m 33, II. Cisedane Drainage Excavation and fill /c 2,830,000 cu m 1,100 3,115 Outlet improvements - L.S Dredging - L.S Control Structures /d 34 each 735, Check structures 16 each 5,312, Tertiary outlets 555 each 450, Bitumen-surfaced roads 86 km 16,000,000 1,370 Gravel-surfaced roads km 13,300,000 1,910 New bridges 19 each 30,500, Rehabilitation of existing bridges 9 each 22,800, Fishpond outlets 120 each 1,750, Pipe and box culverts 95 each 2,630, /a Based on end-1978 prices. /b Includes division boxes, gates and frames, inlet and outlet transitions and short sections of canal lining upstream and downstream of structures, as required. /c Excavation of rivers and drains, embankment construction and disposal of excess excavated material. /d Includes food bridges.

66 INDONESIA IRRIGATION PROJECT XII Crop Production Costs: Physical Inputs Jatiluhur Tertiary development Cisedane - flooded Cisedane - nonflooded Wet season Dry season Wet season Wet season Dry season Irrigated rice Rainfed rice Irrigated rice Corn Irrigated rice Irrigated rice Irrigated rice Corn Cultivation (animal-day) /a Seed (kg) Fertilizer (kg) Urea TSP /b Agrochemicals Insecticides (1) Zinc phosphide (gm) Harvesting (% crop yield/ha) Interest (% month) /c PRESENT FUTURE WITHOUT PROJECT Cultivation (animal-day) Seed (kg) Fertilizer (kg) Urea ad TSP Agrochemicals Insecticides (1) Zinc phosphide (gm) Harvesting (% crop yield/ha) Interest (% month) FUTURE WITH PROJECT Cultivation (animal-day) Seed (kg) Fertilizer (kg) Urea ! TSP S0 30 Agrochemicals Insecticides (1) Zinc pliosphide (gm) Harvesting (% crop yield/ha) Interest (% month) /a Hiring cost is Rp 1,000/animal-day for buffalo pair and driver. c z lb TSP - Triple superphosphate. X x /c Rice - interest is charged on 90% (cash inputs - harvesting costs) for seven months. Corn - interest is charged on 90% (cash inputs - harvesting costs) for three months.

67 INDONESIA IRRIGATION PROJECT XII Monthly Crop Labor Requirements (man-day/ha) Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total JATILUHUR TERTIARY DEVELOPMENT Wet Season Rainfed rice P W Irrigated rice P W W Dry Season Irrigated rice P W W Corn P W W CISEDANE DRAINAGE Wet Season Flooded irri- P gated rice W Nonflooded ir- P rigated rice W W Dry Season Nonflooded irri- P gated rice W Corn W P a M W X w tq Note: P = present W = future without project W = future with project

68 ANNEX 2 Table 3 INDONESIA IRRIGATION XII Crop Budgets /a (Rp'000/ha) J A T I L U H U_R TE R T I A D ELoPMENT C I S E D A N E D R A I N A G E Wet Season Dry Season Wet Season Dry Season Irrigated paddy Rainfed paddy Irrigated paddy Corn Flooded paddy Nonflooded paddy Irrigated paddy Corn Yield (tons/ha) Price (Rn'000/ton) 80.0 (60.0) 80.0 (60.0) 80.0 (60.0) 55.0 (40.0) 80.0 (60.0) 80.0 (60.0) 80.0 (60.0) 55.0 (40.0) Gross value (210.0) (108.0) (198.0) 44.0 (32.0) (120.0) (228.0) (204.0) 33.0 (24.0) Harvesting Losses 8.4 (6.3) 4.3 (3.2) 7.9 (5.9) 1.3 (1.0) 4.8 (3.6) 9.1 (6.8) 8.2 (6.1) 1.0 (0.7) Cultivation 20.0 (20.0) 20.0 (20.0) 15.0 (15.0) 10.0 (10.0) 17.0 (17.0) 20.1 (20.0) 15.0 (15.0) 10.0 (10.0) Seed 5.0 (5.0) 5.0 (5.0) 5.0 (5.0) 2.4 (2.4) 4.2 (4.2) 4.9 (4.9) 4.9 (4.9) 2.4 (2.4) Urea 10.5 (7.0) 5.3 (3.5) 10.5 (7.0) 7.9 (5.3) 8.4 (5.6) 10.5 (7.0) 8.4 (5.6) 7.9 (5.3) TSP 2.4 (1.8) 1.0 (0.7) 2.4 (1.8) 2.9 (2.1) 0.5 (0.4) 2.4 (1.8) 1.9 (1.4) 1.4 (1.1) Insecticides 4.1 (0.9) (0.9) (0.9) 4.1 (0.9) 4.1 (0.9) - Direct production cost 42.0 (34.7) 31.2 (29.2) 37.0 (29.7) 23.1 (19.8) 34.2 (28.1) 41.9 (34.6) 34.3 (27.8) 21.7 (18.7) Gross margin (169.1) (75.6) (162.4) 19.6 (11.3) (88.4) (186.6) (170.1) 10.3 (4.6) PRESENT Labor (man-days/ha) Crop management Land Preparation Planting Harvesting Total FUTURE WITHOUT PROJECT Yield (tons/ha) Price (Rp'000/ton) (75.0) (75.0) (75.0) 75.0 (55.0) (75.0) (75.0)!01.0 (75.0) 75.0 (55.0) Gross value (285.0) (150.0) (270.0) 75.0 (55.0) (150.0) (300.0) (270.0) 60.0 (44.0) Harvesting Losses 11.5 (8.6) 6.1 (4.5) 10.9 (8.1) 2.3 (1.7) 6.1 (4.5) 12.1 (9.0) 10.9 (8.1) 1.8 (1.3) Cultivation 20.0 (20.0) 20.0 (20.0) 20.0 (20.0) 10.0 (10.0) 17.0 (17.0) 20.1 (20.0) 15.0 (15.0) 10.0 (10.0) Seed 5.8 (5.8) 5.8 (5.8) 5.8 (5.8) 3.3 (3.3) 5.3 (5.3) 5.4 (5.4) 5.4 (5.4) 3.3 (3.3) Urea 15.8 (10.6) 7.9 (5.3) 15.8 (10.6) 10.6 (7.0) 10.6 (7.0) 18.5 (12.3) 13.0 (8.8) 10.6 (7.0) TSP 3.6 (2.6) 1.2 (0.9) 3.6 (2.6) 4.8 (3.5) 0.6 (0.5) 4.2 (3.1) 3.0 (2.2) 2.4 (1.8) Insecticides 6.2 (1.4) 4.1 (0.9) 6.2 (1.4) 4.1 (0.9) 4.1 (0.9) 6.2 (1.4) 6.2 (1.4) 4.1 (0.9) Direct production cost 51.4 (40.3) 39.0 (32.8) 51.4 (40.3) 32.8 (24.8) 37.5 (30.6) 54.2 (42.2) 42.8 (32.8) 30.4 (23.0) Gross margin (236.1) (75.6) (221.6) 40.0 (28.6) (114.9) (248.9) (229.2) 27.8 (19.7) Labor (man-days/ha) Crop management Land Preparation Planting Harvesting Total FUTURE WITH PROJECT Yield (tons/ha) Price (Rp'000/ton) (75.0) (75.0) 75.0 (55.0) (75.0) (75.0) 75.0 (55.0) Gross value (337.5) (322.5) 90.0 (66.0) (322.5) (315.0) 75.0 (55.0) Harvesting Losses 13.6 (10.1) 13.0 (9.7) 2.7 (2.0) 13.0 (9.7) 12.7 (9.5) 2.3 (1.7) Cultivation 20.0 (20.0) 20.0 (20.0) 10.0 (10.0) 20.0 (20.0) 20.0 (20.0) 10.0 (10.0) Seed 4.3 (4.3) 4.3 (4.3) 3.3 (3.3) 4.1 (4.1) 4.1 (4.1) 3.3 (8.8) Urea 26.4 (17.6) 26.4 (17.6) 13.2 (8.8) 26.4 (17.6) 26.4 (17.6) 13.2 (2.6) TSP 6.0 (4.4) 6.0 (4.4) 6.0 (4.4) 6.0 (4.4) 6.0 (4.4) 3.6 (1.4) Insecticides 10.3 (2.3) 10.3 (2.3) 6.2 (1.4) 10.3 (2.3) 10.3 (2.3) 6.2 (3.3) Direct production cost 67.0 (48.6) 67.0 (48.6) 38.7 (27.9) 66.7 (48.3) 66.7 (48.3) 36.3 (26.1) Gross margin (278.8) (264.3) 48.7 (36.2) (264.5) (257.3) 36.5 (27.3) Labor (man-days) Crop management Land Preparation Planting Harvesting Total /a Rupiah figures in the table are economic prices and costs; those in parenthesis are financial.

69 INDONESIA IRRIGATION XII Farm Budgets J A T I L U H U R T E R T I A R Y D E V E L O P M E N T C I S E D A N E D R A I N A G E 0.2 ha Farm 0.4 ha Farm 1.5 ha Farm Flooded Farm Non-flooded Farm Incremental values P W W P W W P W W P W W P W W Cropped Areas (ha) Wet season: Irrigated paddy /a 0.50/a Rainfed paddy Dry season: Irrigated paddy Corn Total Cropped Areas Cropping intensity (%) Crop Production (kg) Paddy 1,294 1,408 1,760 2,489 2,708 3,348 8,693 9,458 12,469 1,000 1,000 3,158 2,648 2,792 3,158 Corn Farm Incomes (Rp'000) Gross value of production /a Production costs, excl. labor /b o Hired labor (harvesting) /c /e 85.1/e 112.2/e Net value of production Taxes Payments to landlord Net Incomes Owner-operator Sharecropper Off-farm income /d Total Net Incomes Owner-operator Sharecropper Total Labor Requirements (man-days) P = Present W = Future without project W = Future with project /a Flooded paddy. /b Based on Table 3, Crop Budgets. /c At 12% of gross paddy production. /d Based on interviews and Bank surveys. /e Includes other hired labor; only the 1.5 ha farm is large enough to hire labor; total hired labor is 153 man-days at present, 184 man-days in the future without project and 238 man-days with the project. 1 t- Z

70 ANNEX 3 INDONESIA IRRIGATION XII Schedule of Farly Events Activity Target date Jatiluhur Tertiary Development Award design contracts for first 75,000 ha May 1979 Award construction contracts for first 40,000 ha (design funded by GOI in FY78/79) June 1979 Award construction contracts for next 10,000 ha November 1979 Award design contracts for second 75,000 ha May 1980 Cisedane Drainage Issue tender documents for first drainage rehabilitation contract March 1979 Issue tender documents for first road & bridge rehabilitation contract April 1979 Amend current consultants' contract to include construction supervision May 1979 Award first drainage rehabilitation contract June 1979 Award first road & bridge rehabilitation contract July 1979 Complete construction drawings and tender documents for remaiwing works March 1980 Studies and Investigations Commence socio-economic studies in flood-affected areas and issue tender documents for mapping and procurement of vehicles and equipment March 1979 Commence detailed design of drainage & flood control works April 1979 Amend contract of current drainage consultants to enable them to complete studies; engage training advisor for DGWRD; engage local consultants for socio-economic surveys, soil surevys and engineering designs, and expatriate consultants for feasibility studies; and award contracts for mapping and supply of vehicles and equipment May 1979 Commence engineering designs and feasibility studies November 1979 Complete interim report of DGWRD training advisor December 1979

71 INDONESIA IRRIGATION PROJECT XII Approved O&M Budget for Bank-Assisted Projects, FY78/79 Rehabilitated systems To be rehabilitated in FY78/79 For future rehabilitation Total Unit Total Unit Unit Total No. PROJECT Area budget budget Area budget Total Area budget Total Area budget (ha) (Rp/ha) (Rp m) (ha) (Rp/ha) (Rp m) (ha) (Rp/ha) (Rp m) (ha) (Rp m) I. PROSIDA: 1. Rentang 90,216 3, , Cisedane 40,663 3, , Semarang-Demak-Kudus: a. Glapan Sedadi 46,010 3, , b. Semarang-Kudus 13,909 3, ,222 1, ,869 1, , Way Seputfh 25,000 3, , Ciujung 24,300 3, , Pemali-Comal 123,283 3, , Sadang 50,330 3, , Pekalen-Sampean 211,165 3, ,945 1, , Cirebon 34,111 3, ,764 1, ,640 1, , Sampean Baru ,000 1, , North Sadang ,000 1, ,000 1, , Madiun (Stage I) 4,500 3, ,304 1, ,196 1, , II. Subtotal (Prosida): 663,487 3,800 2, ,235 1, ,705 1, ,427 2,769.0 OTORITA JATILUHUR: 235,000 4,600 1, , ,000 1, ,000 1,152.0 Jatiluhur _ GRAND TOTAL: 898,487 3, , ,111,427 3,921.0 _l

72 - 64- ANNEX 5 INDONESIA IRRIGATION XII Related Documents and Data Available in the Project File A. General reports and studies relating to the agriculture and irrigation sector. A.I. World Bank, "Indonesia--Development Prospects and Needs, Basic Economic Report," Report No. 708-IND, April 15, B. Reports and studies relating to the project. B.1 Jatiluhur Authority, "Tertiary Development Project, Irrigation XII Program," Jakarta, June B.2 Jatiluhur Authority, "Jatiluhur Irrigation Project, Irrigation XII, Data on Yield and Production of Paddy and Secondary Crops," Jakarta June B.3 Jatiluhur Authority, "Jatiluhur Irrigation Project, Irrigation XII, 1976/77 and 1977 Data on Area and Yield of Paddy and Palawija Crops, and Agricultural Support Services," Jakarta, June B.4 DGWRD, PROSIDA (nine volumes), "Design Drainage Project, Updated Feasibility Report," and Sir William Halcrow and Partners, Jakarta, June Volume 1 - Summary Volume 2 - Project Engineering Volume 3 - Hydrology Volume 4 - Agriculture Volume 5 - Economics Volume 7 - Cisedane Subproject Volumes 6, 8 and 9 - Unrelated to Cisedane drainage project C. Selected working papers. C.1 Listings from the Bank's Agricultural Projects Appraisal System (APAS)

73 INDONESIA IRRIGATION XII IMPLEMENTATION SCHEDULE INDONESJAN FISCAL YEAHR' TEHTIARY DEVELOPMENT FY 7 8 / 7 9 W FY79/80 F Y80181 FY81182 FY82/83 Detailed Design and Construction Drawings GCt - Funided 70I DIA 7 I 15000~7 HA 150 HA Fundefd Uldler Project _A 5000' _ HA _ Teouler and Award 50.00l _ OO IHA HA 1111A1 430 V Tertiary Contstruction Tel darv Cossstrucl ion _ ~~~50, s HA _t_ 0OOO 2111it HA _ 43,OOOIHA _t_ 43 00tHA _ Constructiuo of Staff Housing 130Units ; _ 12 Units CISEDANE DRAINAGE Coirsiotiort Drdwings _ T,:rde. and Award 3 Fl,ood Cointrol and Draiiiage Works 30 30% 30% 10% fist-tcur and A"cess Hoads 36 30% _ 10X _T ldid NDINVEST IGATIONS Feasilsllity Stuidies DeldiieLd Du5iqnls l _ 60% 40% Assessuirunt of DGWVRD Training and Staffing Needs I gi lriloiseslar focda vear slaris April 1 and ends Marcih 31 of followinig Vaar. C'-0 b/ Work... ipr.gress eliher with GOI funds or wilh Bank-Asmistance provided under previous piojects World IaiSk I.

74 INDONESIA IRRIGATION XIl JATILUHUR AUTHORITY ORGANIZATION Minister of State for Economy, Finance and Industry Ministers of Public Works and Electric Power, Finance. Home Attairs and Agiriculture Jatiluhur AuthoritV Board of Director President Director Director, Electric Director llot, Adiministration Powver Deportment Irrigation Department ldepartment DDeputy Director Deputy Director Agricultiure Division Developmnent and Construction Division [ ratioi a)d Maintenance Divisioni World Ban+k H. on

75 Figure 4.2 INDONESIA IRRIGATION XII FIELD ORGANIZATION TERTIARY DEVELOPMENT Project.Manager Sub-Project Manager 1 Deputy Sub-Project Manager *~~~~~~~~~~~~~~ u, r Chief Chief Che Cif _ Guidance and ReA Guidance and Re Section for Tech- Section for Adcruiting Team cruiting Team nical Affaisn ministraaive Affairs Water User Associations _Civii Works Contractors World Sank

76 INDONESIA IRRIGATION XIl WATER RESOURCES ORGANIZATION MINISTER OF PUBLIC WORKS AND ELECTRIC POWER DIRECTOR-GENEHAL OF WATER RESOURCES DEVELOPMENT PLANNiNG ANDE DFETO RATER (IRECTORATEOFDIDCAT PROGRAMMINGi OFflE WMSO RIAINIRGTO NIEHN PROYEK POIAPOE C IMANUK P _SD PRYE World Batik -1876

77 INDONESIA IRRIGATION XII PROSIDA MANAGEMENT ORGANIZATION DIR. GENERAL WATER RESOURCES DEVELOP. EXPEtHTS _ A D VA IS O RYGHOtJP CHIEF CHIEF C ENGINEERING OP. & MAIN. AOMl ISTR. gdeputy CitliEF DEUYCHIE ENG./CONSfHLUC. ENG.tSUHV -ES ASSI TO THE ASSV. FOR ASST. fot GEN. MANAG. SUPEfV CONST S&. 0 M FINANCE ASSFOHAST.FOlJ ASST. FOR BILDNG/AC. DENHYDROLOG ASST. FOR GEN AFFAIR ASST FOR A MECH. EQUIP. BUDGETIRREP. AGRICOLT. I SUB PROJECT SUE. PROJECTS SUvB PflOJECTS SUB. P."JEC I SUB PROJECT E SERIESI A SERIES B SEIES SERIES D SERIES W->,I B.*m., 1G008

78 INDONESIA IRRIGATION XII PROSIDA SUB-PROJECT ORGANIZATION CISEDANE DRAINAGE SUB-PROJECT PROVINCIAL MANAGER i AOVISORY GROUP CONStULTANTS.. s,,..,.uam.us..guu..um,mmmu,us.uma.deputy SUB PROJECT MANAGER 21 DEPI ITY r & M _ ~~~~~~~~~~~DEPtJTY -DEPOTl ENGINEERING ADMINISTRATION 2/ 2/ 2 1 ~~~~~~~~~ SUHVE & - CONSTRUCTION MECHANICL ADMINISTRATION FINANCE OMTROLLER 0 & M SECTIONS I/ PROVINCIAL StAFF 2/ PROSIDA STAFF World Ha.k Wori(i Haoik-8964 ID

79 INDONESIA IRRIGATION PROJECT XIl Tertiary Development, Cisedane Draina9e, Projects Proposed Croppinig Calendar iriy rfev..ry-v M... h Ap,ril M_ V Jur-._ l_ Au,gst Sep Iei.. h uus. e Nu.b. W-I-s-aon Prda.y Tltway Cewloolrp-t N _ Clowdn OIUssW,I 42r0001 M M _ l.a Te-rtary D0.'io llfetk 1ie7,00o h.t N _ C ldac Orein i e 20.1)0 hi. _ ~ ~ ~~~~~~~H_ SecanWrvy C,opg C C Te.rnry Del.wors t he M t M Cmsdee. Drw.** 8.0r0 h. H H Nt tosain: C - CultivatIon 600 N Nmrr,y T -T,"Asris.n M - Management H - Harest_ 400 tn_i Clowd.ne Dra Tertiary Oevetapsnr j w AJ 200 ~ ~ ~~~~ t ~~~~~~~~~~~~~~~~~~~~~~~~ _ X _ - = ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ b e oi W2 Wil [dru.,, 19234

80

81 103 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~. ~~~~~~~~~~~IBID Sbolgo ~~~~~~~~~~~~MALAYSIA B,.~g G.di, S.,dy A-'s D0n.o. Swody Ai.. A L I M AN TA N 0 I 3-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 I, BOld boo ~~~~~~~BELITUN G 7'1.8 dy A ~~~~~~~~~~~~~~~L WESI b. ODO h. Inpr 0 O N #.s ,600 h ~ ~ ~ ~ ~ o4 V: A S,4E Woy(0Sobo]c 1,25 h.-o. 24.,Sbo8u,PO W4y KOb.*.L.4 t. O,L irrigation #*ojic1 xit ' ~ ~ -13 ~o~ 0400 I8RI~~ATlQ8'~~O~iE0Th1.X1 -~~~ji 4'Ar.. ~ ~ jr.eo~~g o,rflares Sea ROADII S. kar,s.y.lbe.,i0~ - - I~TERNAr9NALSqu~$~ P0ICIrnNES 9* KIFVxPHL"IE ' 0~~~~~~~~~nv ~~ P50.1.~~~~4~ -"W 11 /V I A N 0 c 9 N~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ALU0TN ,} ulwsirioj9 Ica,BSTh. ~ d1b8.r~ Wo*,8 r r.m.i.o

82

83 ] -A v a :ae a IBRD H- S9 a2. 106,30' 106, 35' 106 4Q ' OCTOER 1978 SecodrCa s < N 0 - a ) ; X ;; u A D -- - ~~~~~~~~~~~~~~~~~~~~~Secondary Conols Indian Oeecrr IRRIGATION PROJECT )XIl Droins orrivers Drains or Rivers to be Rehabilitated ind udingembankments r t,t II :A i: INDONE51A ; Primaty Carnois - SEDANEDRAINAGE PROJECT. Existing Roads - = ; - Districf Road to be Constructed or Rehabilitoted by D PU K Inspection Roods to be Constructed or Rehobilitoted A VA S A ; ;Emonkments to be Constructed 6-00' U x Flooded Areas 6 00' Sub-projett Boundary 9SXi 1 e 2. := 3 p X _,<,}, S ; ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0 1f X 2 * / 4 5 h got ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~' WM ' 106~~~~~~~~2 106~~~~~30' 106~~~~~35 106%t '~~~~g..g. ont 1-1 / k 10