Indonesia: Sustainable Aquaculture Development for Food Security and Poverty Reduction Project

Transcription

1 Completion Report Project Number: Loan Number: 2285-INO(SF) June 2015 Indonesia: Sustainable Aquaculture Development for Food Security and Poverty Reduction Project This document is being disclosed to the public in accordance with ADB s Public Communications Policy 2011.

2 CURRENCY EQUIVALENTS Currency Unit rupiah (Rp) At Appraisal At Project Completion (15 October 2006) (23 September 2014) Rp1.00= $ $ $1.00= Rp9,105 Rp11,984 ABBREVIATIONS ADB Asian Development Bank BAPPENAS Badan Perencanaan Pembangunan Nasional (National Planning and Development Agency) CEW community-based extension worker DFS district fisheries service DGA Directorate General of Aquaculture EIRR economic internal rate of return FIRR financial internal rate of return MMAF Ministry of Marine Affairs and Fisheries MOF Ministry of Finance NGO nongovernment organization NPV net present value NSC national steering committee OKI Ogan Komering Ilir PCR project completion review PIU project implementation unit PMC project management consultant PMO project management office SDR special drawing right

3 NOTES (i) (ii) The fiscal year (FY) of the government and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2009 ends on 31 December 2009 In this report, "$" refers to US dollars. Vice-President S. Groff, Operations 2 Director General J. Nugent, Southeast Asia Department (SERD) Country Director S. Tabor, Indonesia Resident Mission, SERD Team leader Team members P. Wardani, Senior Project Officer, Indonesia Resident Mission A. Fransciscus, Associate Project Analyst, Indonesia Resident Mission T. Quiko, Financial Control Analyst, Indonesia Resident Mission In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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5 CONTENTS Page BASIC DATA i I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 6 D. Disbursements 7 E. Project Schedule 7 F. Implementation Arrangements 8 G. Conditions and Covenants 8 H. Consultant Recruitment and Procurement 9 I. Performance of Consultants, Contractors, and Suppliers 9 J. Performance of the Borrower and the Executing Agency 10 K. Performance of the Asian Development Bank 10 III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Effectiveness in Achieving Outcome 11 C. Efficiency in Achieving Outcome and Outputs 11 D. Preliminary Assessment of Sustainability 12 E. Impact 13 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 13 A. Overall Assessment 13 B. Lessons 14 C. Recommendations 14 APPENDIXES 1. Design and Monitoring Framework Summary of Project Outputs and Accomplishments Project Cost by Expenditure and Financier Annual Asian Development Bank Loan Disbursements Planed and Actual Project Implementation Schedule Project Organizational Structure Status of Compliance with Loan Convenants Consultancy Services, Planned and Actual Consumption of Fish, Vegetables, and Fruits under with and without Project Scenarios Impact on Production and Productivity of Fish and Aquatic Products and Nominal Net Income, Employment Impact Financial and Economic Analyses Budgetary Support for Project Sustainability Summary of Gender Equality Results and Achievements 66

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7 BASIC DATA A. Loan Identification 1. Country 2. Loan Number 3. Project Title 4. Borrower 5. Executing Agency 6. Amount of Loan 7. Project Completion Report Number Indonesia 2285-INO(SF) Sustainable Aquaculture Development for Food Security and Poverty Reduction Republic of Indonesia Directorate General of Aquaculture of the Ministry of Marine Affairs and Fisheries SDR22,352,000 ($33,300,000) PCR: INO 1511 B. Loan Data 1. Appraisal Date Started Date Completed 2. Loan Negotiations Date Started Date Completed 3. Date of Board Approval 4. Date of Loan Agreement 5. Date of Loan Effectiveness In Loan Agreement Actual Number of Extensions 6. Closing Date In Loan Agreement Actual Number of Extensions 7. Terms of Loan Interest Rate Maturity (number of years) Grace Period (number of years) 8. Terms of Relending (if any) 19 September October November November December March June July December December % per annum during grace period and 1.5% per annum thereafter 32 years 8 years None

8 ii 9. Disbursements a. Dates Initial Disbursement 8 August 2008 b. Amount Effective Date 13 July 2007 Final Disbursement 28 November 2014 Original Closing Date 31 December 2013 Time Interval 75.6 months Time Interval 77.5 months Amount (SDR million) Category Last Revised Allocation Net Amount Available Original Allocation Amount Canceled Amount Disbursed 01 Civil Works A Equipment B Materials (0.163) Consulting Services Training and Workshops Undisbursed Balance 05 Survey, Studies, and Research 06 Interest Charge Unallocated Imprest Account Total ( ) = negative. Source: Asian Development Bank Loan Financial Information System. Amount ($ million) Category Last Revised Allocation Net Amount Available Original Allocation Amount Canceled Amount Disbursed 01 Civil Works A Equipment B Materials (0.322) Consulting Services Training and Workshops Undisbursed Balance 05 Survey, Studies, and Research 06 Interest Charge Unallocated Imprest Account Total ( ) = negative. Source: Asian Development Bank Loan Financial Information System downloaded on 5 February Local Costs (Financed) - Amount ($) 0 - Percent of Local Costs 0 - Percent of Total Cost 0

9 iii C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost Local Currency Cost Total Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs ADB Financed Government Financed Project Beneficaries Contributions IDC Costs ADB Financed Total ADB = Asian Development Bank, IDC = interest during construction. 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual A. Base Cost 1. Aquaculture Production 2. Aquaculture Support Services 3. Institutional Strengthening and Project Management Institutional Strengthening Project Management Subtotal (A) B. Contingencies 1. Physical Contingencies 2. Price Contingencies Subtotal (B) C. Interest Charge During Implementation Subtotal (C) Total (A+B+C)

10 iv 4. Project Schedule Item Appraisal Estimate Actual Dates of Contracts with Consultants Project Management Consultant Date of Award February 2008 April 2008 Completion of Work June 2013 December 2013 Nongovernment Organizations Date of Award May 2008 March 2009 Completion of Work December 2010 December 2012 Community-based Extension Workers Date of Award January 2009 Completion of Work December 2013 Civil Works Contracts Rehabilitation of Ponds Date of Award January 2009 June 2010 Completion of Work December 2011 December 2012 Rehabilitation of Irrigation Canals in Ponds Date of Award January 2009 June 2010 Completion of Work December 2011 December 2012 Rehabilitation of Production Road Date of Award January 2009 June 2010 Completion of Work December 2011 December 2012 Construction of Water Supply Schemes Date of Award January 2009 June 2011 Completion of Work December 2011 December 2012 Construction of Demonstration Units Date of Award January 2009 July 2009 Completion of Work December 2011 December 2012 Equipment and Supplies and Vehicles Production Input Assistance First Procurement October 2008 October 2009 Last Procurement December 2013 December 2012 Vehicles and Motorcycles for Project Management Office, Project Implementation Units, and Community-based Extension Workers First Procurement June 2008 October 2009 Last Procurement December 2008 December 2011 Other Milestones Community Mobilization and Social Preparation Date of Award April 2008 June 2009 Completion of Work December 2010 December Project Performance Report Ratings Implementation Period Development Objectives Ratings Implementation Progress From July 2008 to December 2009 From January 2009 to December 2009 From January 2010 to December 2010 From January 2011 to December 2011 From January 2012 to December 2012 From January 2013 to December 2013 Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory Unsatisfactory Satisfactory Satisfactory Highly Satisfactory Highly Satisfactory Satisfactory

11 v D. Data on Asian Development Bank Missions Name of Mission Date No. of Persons No. of Person-Days Specialization of Members Fact-Finding Jul a, b c Preappraisal 27 Oct 10 Nov b, c, d, e Appraisal 3 7 Oct b, c, f Project Inception 3 10 Jul g, h Loan Review 1 28 Nov 4 Dec g Loan Review Aug g Loan Review Nov g, i Loan Review Apr j, i Loan Review Oct k, i Loan Review Jul k.i Loan Review 7 27 Sep 6 Oct k,i Midterm Review 1 12 Aug k,l,m Loan Review Nov k Special Loan Administration 5 9 Mar k, l Loan Review Nov k, l Loan Review May 11 Jun n, o, p Loan Review Sep 16 Oct n, o, p Project Completion Review 23 Sep 30 Oct n, o, q a = director, b = senior agricultural and natural resources management specialist, c = project economist, d = gender specialist, e = aquaculture environment specialist, f = counsel, g = principal project management specialist, h = associate project analyst, i = project analyst, j = environment engineer, k = water resources management specialist, l = project officer, m = economist and financial consultant, n = senior poject officer, o = project analyst, p = finance officer, q = international staff consultant.

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13 I. PROJECT DESCRIPTION 1. The Asian Development Bank (ADB) approved a loan of SDR22,352,000 to the Government of Indonesia for the Sustainable Aquaculture Development for Food Security and Poverty Reduction Project on 12 December The project s expected impact was reduced poverty and increased food security through sustainable aquaculture development. Its expected outcomes were increased production of fish and other aquatic products, and improved income, nutrition, and employment status of poor fish farmers and coastal communities. 2. To attain its outcomes, the project had three components: (i) aquaculture production enhancement, (ii) aquaculture support services, and (iii) institutional strengthening and project management. The project was implemented in five districts: Langkat, Ogan Komering Ilir (OKI), Karawang, Sumedang, and Buton. The project became effective on 13 July 2007 and closed on 31 December The Directorate General of Aquaculture (DGA) of the Ministry of Marine Affairs and Fisheries (MMAF) was the executing agency, and the district fisheries services (DFSs) served as the project implementation units (PIUs) in the five project districts. II. EVALUATION OF DESIGN AND IMPLEMENTATION A. Relevance of Design and Formulation 3. The project was highly relevant to the government s sector policy and plan at the time of appraisal. It supported the national policy and strategy for aquaculture development and poverty reduction as stipulated in the MMAF s Strategic Plan for It was aligned with ADB s country strategy and program for Indonesia, , 2 which had the strategic priorities of pro-poor, sustainable economic growth, and social development. The project remained highly relevant at the time of completion. The project continued to be consistent with the government s National Medium-Term Development Plan, , which still aims for poverty reduction as an important goal. The three components of the project continued to be consistent with MMAF s Medium Term Strategic Plan for , which aims to expand the country s aquaculture production from 4.78 million tons in 2009 to million tons in The project remained consistent with ADB s country partnership strategy, , 3 which included poverty reduction, support for inclusive growth in the economy, and sustainable management of natural resources as strategic thrusts. 4. Project preparatory technical assistance 4 was carried out in 2003 to formulate the project design, which proved sound. The formulation process was adequate, including consultations with a wide range of stakeholders e.g., the National Development Planning Agency (BAPPENAS), Ministry of Finance (MOF), Ministry of Home Affairs, DGA and relevant directorate generals in MMAF, and fish farmers and desk reviews of policy and strategy documents as well as decentralize finance and statistics, which yielded a comprehensive marine and fisheries, which includes aquaculture sector assessment, economic and financial analyses, and poverty, gender, and social analyses. 1 ADB Report and Recommendation of the President to the Board of Directors: Proposed Loan to Indonesia for the Sustainable Aquaculture Development for Food Security and Poverty Reduction Project. Manila. 2 ADB Country Strategy and Program, Indonesia, Manila. 3 ADB Country Partnership Strategy, Indonesia, Manila. 4 ADB Technical Assistance to Indonesia for Sustainable Aquaculture Development for Food Security and Poverty Reduction Project. Manila.

14 2 5. The project adopted excellent design features of poverty targeting, community participation, capacity building for the project implementers and project beneficiaries, and microenterprise business development in aquaculture production and processing. The project was implemented in accordance with the Government Regulation No. 7 of 4 February 2008 on deconcentration and co-administration of tasks between national and regional governments which granted full project investment cost from loan proceeds as grants from the national government to district governments. The regulation was issued to replace the MOF Decree No. 35/2003 and MOF Regulation No. 129/PMK.07/2005 which granted 90% of the investment cost from loan proceeds to district governments, whose implementation guidelines were not yet available at project effectiveness in July During project administration, the DGA changed the scope of project activities in Karawang District, replacing mariculture activities with freshwater aquaculture activities because of the limited potential investment in mariculture resulting from the poor quality of seawater along the district s coastal areas. On the other hand, mariculture activities were added to the scope of project activities in Langkat District because grouper was found to have a large potential for development along the coastal areas of the district. Moreover, since some of the targets set for the outputs were unclear, and other targets were based on weak assumptions, some performance targets were revised by the project management office (PMO) to promote the setting of measurable and relevant targets. The revision in project scope and some performance targets were approved by ADB on 2 April The revised performance targets are shown in the design and monitoring framework for the project. B. Project Outputs 7. The project achieved majority of its targets. Out of the 32 performance targets in components 1, 2 and 3, 26 outputs (81%) either totally achieved or overachieved the targets. Appendix 1 shows achievements against the targets set in the design and monitoring framework. Appendix 2 summarizes the project s output achievements. 1. Aquaculture Production Enhancement 8. This project component aimed at improving the production performance of major types of aquaculture systems in the project areas through community-based management. Marketdriven, sustainable aquaculture development was made possible through (i) social preparation and community empowerment; (ii) fish production enhancement in freshwater, brackishwater, and mariculture systems; and (iii) community-based management of culture-based fisheries. 9. Social preparation and community empowerment. Nongovernment organizations (NGOs) and community-based extension workers (CEWs) were contracted by PIUs for each project district to carry out social preparation and community empowerment activities. The social preparation were undertaken to facilitate the formation of fish farmers groups and the training of their members in the establishment and management of aquaculture-based or related microenterprises. A total of 14,585 communities participated in the consultation process to assess their needs and determine potential solutions. Of these, 12,594 communities composed of 10,821 men and 1,707 women were selected (in accordance with criteria agreed upon by ADB and the government) 5 and organized to form 881 project beneficiary groups 6 for 5 The selection criteria for project beneficiaries of small-scale fish farmers to be eligible to participate in the project included: (i) must belong to poor income groups as defined in the Government s Medium-Term Development Plan and Annual Development Plan; (ii) must belong to organized fish farmer groups; (iii) must have some prior experience in fish farming; (iv) must be willing to undergo training in improved methods and practices of

15 3 aquaculture production enhancement activities. The remaining 2,057 communities composed of 1,889 women and 168 men were selected and organized to form 139 processing or women s groups whose primary activity was to jointly process fish or seaweed for sale in the local markets. 10. The project provided training and input assistance to production and processing groups to help them expand their aquaculture or processing enterprises. Trainings on financial and organizational management, leadership, and empowerment were provided by NGOs to fish farmers groups, while trainings on improved aquaculture technology and best aquaculture production practices were provided by the CEWs, the project management consultants (PMCs), and a training consultant engaged by the PIUs. With the assistance of the NGOs and the CEWs, the PIUs also formed 102 associations of project beneficiary groups, 7 from which 40 cooperatives were established by the district cooperative service. 11. Fish production enhancement. To increase the supply of fish and aquatic products, rehabilitation of ponds and their respective irrigation and drainage canals was undertaken in the project districts. Fish farmers of the project beneficiary groups were actively involved in rehabilitation works through the provision of in-kind labor. A total of hectares of freshwater ponds were rehabilitated in Karawang and Sumedang, exceeding 348% of the target. Moreover, 7.73 kilometers of irrigation and drainage canals were also improved to support ponds access to water supply during planting and drain excess water during and after the harvest. For brackishwater development, 3,277 hectares of ponds were rehabilitated in Langkat, OKI, and Karawang, achieving 80% of the revised target of 4,100 hectares. In addition, kilometers of irrigation and drainage canals were improved in Langkat, OKI, and Karawang. 12. A total of 533 mariculture cages were constructed in Langkat and Buton. To demonstrate improved technology and species for grouper in Langkat and for seaweed and grouper in Buton, 69 mariculture demonstration units were constructed in these districts. In addition, 76 demonstration ponds in freshwater aquaculture were constructed in OKI, Karawang, and Sumedang districts, while PIUs constructed 107 brackishwater demonstration units in Langkat, OKI, and Karawang districts. 13. The total number of freshwater hatcheries constructed for the production of fingerlings in Sumedang and OKI was 31. The total number of mariculture hatcheries constructed in Buton was only four. One of the hatcheries established in Buton is a district government hatchery that was turned over to beneficiary groups for their operation and maintenance. Project beneficiary groups fish farmers provided in-kind labor in the construction and maintenance of the hatcheries. In Buton, 582 hectares of seaweed facilities were constructed by 2,912 project beneficiaries, exceeding the target of 500 hectares. 14. To serve fish farmers who could not access clean freshwater in four project districts, 166 units of water supply facilities were constructed. These were comprised of a large water supply facility (equivalent to 130 units) in OKI District and 36 small-scale water supply units in Langkat, Karawang, and Buton districts. The project rehabilitated kilometers of production roads in Langkat, OKI, Karawang, and Buton districts compared to the target of 60 kilometers (a 63% achievement rate). This underachievement could be attributed to two unfinished production road aquaculture; (v) must be willing to share their new skills with other fish farmers in the community; and (vi) must be willing to be supervised and monitored by project personnel. 6 Kelompok Penerima Manfaat or Pokmaman. 7 Gabungan Pokmaman.

16 4 rehabilitation contracts in Langkat and OKI in The production roads were intended to link project beneficiaries to markets or enable them to bring their products directly to markets. The contractors could not complete their work as they did not have financial capacity due to extremely low bidded price, good work program and schedule. The unfinished village production roads did not have a significant impact on project beneficiaries because buyers actually go to the project sites (since they have transport facilities). The PMO decided to terminate the contracts in 2013 due to insufficient time to process additional budget if the works were to be retendered. 2. Aquaculture Support Services 15. The main objective of this component was to upgrade the production techniques and quality of aquaculture products through strengthened extension services and improved postharvest handling, processing, and marketing techniques in collaboration with the private sector and fish farmers organizations. 16. Extension services. To strengthen the districts fisheries extension services, which were weakened by the decentralization policy of the government, 8 72 CEWs were recruited by the PIUs to (i) provide extension services and grassroots-level training for project beneficiaries on best practices in aquaculture production, and (ii) strengthen the community groups in 2013 after the NGOs contracts ended in December In addition, the CEWs, conducted demonstrations of improved technology, took water quality samples, and monitored and supervised the distribution of production inputs by the suppliers to beneficiary groups. From June 2009 to September 2013, the CEWs held 18,888 meetings with the beneficiary groups. The total number of community groups served by the CEWs was 1,023 groups composed of 881 project beneficiary groups, 102 associations of project beneficiary groups, and 40 cooperatives. This achievement exceeded the target of 930 groups. 17. In addition to the provision of assistance in the form of trainings and infrastructure facilities improvement, the project provided one-time production input assistance to fish farmers of the project beneficiary groups to support their aquaculture production activities. The average size of production input assistance ranged from Rp4.0 million to Rp12.5 million per person or fish farmer depending on the type of aquaculture production system, pond improvement requirements, and type of commodity. From 2009 to 2013, 12,594 fish farmers of the 881 project beneficiary groups were provided with production inputs. Apart from the fish farmers of the project beneficiary groups, the project also provided one-time processing input assistance per group to 139 women s processing groups with processing equipment and raw materials. 18. Processing and post-harvest handling. To reduce post-harvest and economic losses, the project assisted the beneficiary groups in the procurement or installation of freezers, ice boxes, drying facilities, and storage facilities and equipment. In addition, the PIU in OKI constructed 60 small-scale fish feed mills, 58 of which are operational. The facilities were managed by fish farmers organizations. The project completion survey, conducted from April to June 2013, showed that the provision of processing and post-harvest equipment under the project resulted in the reduction of post-harvest and economic losses by about 55% (from an average of 11.3% to 5.0%) compared to the targeted 30%, with a potential reduction in 8 Law 32/2004 on Regional Government, which broadened the authority of regional governments, called for the devolution of fisheries management responsibilities from the central government to the provincial and district governments. The district governments now have the main responsibility for aquaculture development and provision of extension workers. The number of districts extension workers was limited due to budget constraints.

17 5 economic losses of about Rp13,000 per person. Moreover, the project resulted in an average 27% increase in the value of beneficiaries products compared to the without project scenario. The increase in the value of harvested products was attributed to the higher price received as a result of the use of improved species, better quality of cultured fish and other aquatic products, and lower percentage of post-harvest losses. On average, the project resulted in a 5.6% increase in the sale of harvested products (from 87.1% before the project to 92.7% with the project) compared to the target of 30.0%. This relatively small increase was attributed to the already high percentage of sales of harvested products before the project. 19. Fish marketing development. Using cell phones as a simple and effective market information network developed by the PMC, PIU staff and the CEWs were able to effectively disseminate information on real-time prices of fish and other aquatic products as well as potential market outlets offering high prices to the chairpersons of the project beneficiary groups, who relayed the market information to their members. Anticipating an increase in the supply of fish and aquatic products as a result of the provision of production input assistance, the PIUs, with the help of the PMO, undertook market promotion campaigns to promote the sale of fish and other aquatic products to prospective buyers in different markets in the project districts. 20. Environmental and fish health management. Poor water quality in the project districts was caused by aquaculture operation and by external factors such as pollution coming from outside the fish farming areas. To facilitate monitoring of water quality and fish diseases in the project districts, four laboratories were constructed (one each in OKI, Langkat, Sumedang, and Buton). The PIU in Karawang decided not to construct a water quality and fish health laboratory under the project because the existing provincial laboratory located in Karawang was sufficient to meet the project s requirements. The PMO provided training to the technical staff in the four newly established water quality and fish health laboratories to strengthen their capabilities. Water quality in the aquaculture production areas was monitored by the CEWs using simple tools, and it was analyzed in the water quality and disease laboratories in the project districts. The PCR mission found that all the water quality and fish health laboratories in the project districts were still operating or functioning after project completion. 21. Environment screening. Owing to the successive resignations of three environment specialists in the PMC recruited for the project, the work on environmental screening of aquaculture facilities was inadequate. The PMC had difficulty in finding qualified experts due to a scarcity of environment experts in fisheries sector. Nevertheless, the third environment expert prepared an action plan to overcome the water quality problems for each of the project districts, which was approved by the PIUs. PMO and the PIU staff undertook the following actions based on the recommendations of the environment expert to minimize adverse environmental impacts resulting from more intensive aquaculture culture practices in the project districts, and to minimize pollution coming from other sources: (i) designed civil works that minimized the adverse impacts from the project as well as from the surrounding environment, (ii) provided environmental management training to PIU staff and the CEWs, (iii) established laboratory facilities for monitoring water quality and fish diseases in each project district, and (iv) encouraged farmers to adopt low-density culture and well-adapted species. A detailed assessment of the environmental impacts of project activities conducted by the PMC showed that the construction and rehabilitation works in OKI and Karawang would have a minimal negative impact on the environment because most of the civil works contracts were relatively small in size. The increased use of fish feeds in freshwater ponds in Karawang and freshwater cages in OKI was found to cause water pollution, but was found to have minimal environmental impact.

18 6 22. Applied research. During the project implementation period, there was no applied research undertaken by the PIUs in the project areas since (i) the PIU staff did not have the necessary expertise and experience in conducting applied research, and (ii) national aquaculture development centers located in 15 strategic sites in Indonesia were already conducting applied research in freshwater culture, brackishwater culture, and mariculture. To disseminate information on the results of applied research to the CEWs, who were responsible for disseminating the information to the project beneficiaries, the PMC, as requested by the PMO, collected information on the results of applied research conducted by national aquaculture centers located in Sukabumi (for freshwater aquaculture research), Jepara (for brackishwater aquaculture research), and Lombok (for mariculture research). 3. Institutional Strengthening and Project Management 23. This component aimed to enhance the institutional capability of the DGA, the DFSs, fish farmers, and the private sector in aquaculture development. 24. Institutional strengthening. The PMO organized several training courses to improve the capacity of PMO, DGA, and PIU personnel on various subjects such as procurement of goods and services, financial management and administration, community development and gender action plans, water quality analysis, marketing, and access to various financing schemes. A total of 222 participants (comprising 55 staff members from the DGA and PMO, and 167 staff members from the five PIUs) benefited from these training courses, surpassing the target of 45 participants. A total of 72 CEWs engaged by PIUs were provided with extension equipment and portable equipment for measuring water quality, motorcycles for official use, and training in the national aquaculture development centers in Sukabumi, Jepara, and Lombok before they were assigned to work in the project villages to strengthen the districts fisheries extension services. The project upgraded, renovated, or established 12 aquaculture technical centers in Ujung Batee, Batam, Jambi, Lampung, Mandiangin Banjarmasin, Sukabumi, Karawang, Situbondo, Takalar, Ambon, Tetulu, and Lombok to support their carrying out functions and responsibilities to develop improved species and technology and to multiply improved species on a large scale for distribution to fish farmers. In 2010, a computer-based aquaculture management information system was installed at the DGA. As originally planned at project appraisal, the installed system should have been linked to the participating PIUs. However, this plan did not materialize because the system was linked to the DGA website, which was not able for use by the PIU staff in the collection and dissemination of project data. The PMC produced 29 high-quality reports, sets of guidelines, and presentations that were distributed to the PMO, the PIUs, the CEWs, and the NGOs. With the assistance of the PMC, the PMO and PIUs also prepared 15 quarterly project management reports and six annual reports that were submitted to ADB, the MOF, BAPPENAS, and MMAF. 25. Project management. The PMO in the DGA and the PIUs in the five project districts were established in early The PMO and the PIUs were adequately staffed and equipped to meet project requirements. Offices of the PIUs were improved, and motorcycles and vehicles were purchased for use by project staff to enable them to implement project activities effectively and efficiently. The PMC was engaged to provide international and national consultants to assist the PMO and the PIUs in project management. C. Project Costs 26. Appendix 3 and basic data C2 compare the estimated budget at project appraisal and the actual project costs. At loan closing, the actual project cost inclusive of taxes, prices and

19 7 physical contingencies, and service charges was $44.61 million, which was close to the appraisal estimate of $44.52 million. ADB financing for the project was $31.60 million, which was lower than the appraisal estimate of $33.30 million. This can be attributed to the following reasons: (i) two road production contracts in Langkat and OKI were not completely implemented due to unperformed works, and (ii) the project completion survey was not financed by ADB because in tendering the contract, the PMO used the government s procurement procedure instead of ADB s quality- and cost-based selection method as agreed and stipulated in the loan agreement. ADB s share accounted for 71.0% of the total project cost. Meanwhile, the national and the district governments contribution totaling $9.49 million constituted 21.3% of the total project cost and was 12.2% higher than the appraisal estimate of $8.46 million because the government shouldered the project completion survey cost and additional project management costs. The project beneficiaries actual contribution of $3.52 million was about 27.5% higher than the appraisal estimate of $2.76 million because the number of project beneficiaries who provided free labor and material contributions during project implementation exceeded the target of 14,000 project beneficiaries at appraisal. 27. ADB also approved the request for reallocation of loan proceeds among the project s components and expenditure categories in March The purpose of the loan reallocation was to cover shortages in certain categories such as civil works, equipment, and consulting services, because actual costs during implementation turned out to be higher than the costs estimated at appraisal. Moreover, the project required an additional allocation to cover training or workshops for beneficiaries and community groups and a high level national workshop to discuss and agree on the executing agency s exit strategy for achieving project sustainability. The negative balances and additional allocation for training or workshops were financed from the savings in some expenditure categories such as materials, surveys, studies and research, and the unallocated budget. The reallocation of the loan proceeds was not related to a change in scope or implementation arrangements, but was required to adjust the categories based on actual contracts awarded from 2009 to D. Disbursements 28. Appendix 4 presents the actual annual disbursements from 2008 to The loan funds were disbursed through direct payment to the PMC and the imprest account established at Bank Indonesia. The imprest account helped expedite utilization of loan funds where payments could be made at the district level through district treasury offices. Disbursements started in 2008 and significantly increased in 2011 and The highest amount of disbursement ($11.32 million) was in 2012 when the PMO and PIUs, with the assistance of the PMC, helped accelerate project implementation activities. The total disbursement (including the interest payment and other expenditures) at close of the loan account on 15 December 2014 was SDR20.46 million ($31.60 million), or 92% of the total planned disbursement of SDR22.35 million. The unused imprest account balance of SDR1.89 million ($2.76 million) was canceled at account close. The executing agency had no difficulty in refunding the unused balance of the imprest account to ADB. E. Project Schedule 29. The project was originally scheduled to be implemented over 6.5 years, from the date of loan effectiveness on 13 July 2007 to the project completion date on 31 December The implementation of the project in the five districts began in 2009, delayed by about 2 years due to the unavailability of implementation guidelines to the MOF s budget appropriation decree No. 35/2003 and regulation No.129/PMK.07/2005, to enable the DGA to request budget allocations

20 8 for project implementation for the project districts. The request for budget allocation was possible following issuance of the Government Regulation No. 7 of February 2008 (para. 5). The MOF allocated the first budgets to the DGA in mid-2008 for national-level activities and in late 2008 for district-level activities. The budgets were then distributed to the PMO for 2008 activities such as mobilization of consulting services, and to the PIUs at the beginning of 2009 for district-level activities. The PMC commenced in June 2008 and assisted the DGA in budgeting and management of the project. Despite the 2-year delay in project implementation, the PMO did not request an extension for the project since it adopted effective strategies to accelerate project implementation during As a result of these strategies, the project was completed in December 2013 as originally envisaged at appraisal. Appendix 5 shows the project implementation schedule at appraisal compared with the actual implementation schedule. F. Implementation Arrangements 30. Appendix 6 shows the actual project organizational structure compared with that envisaged at appraisal. Actual implementation arrangements were similar to those envisaged at appraisal except for some minor modifications. The DGA as the executing agency was responsible for the overall management of the project to ensure efficient and effective delivery of project inputs to the target beneficiaries and timely completion of project activities. The DGA undertook national-level activities, mainly relating to policy formulation, overall coordination of capacity-building interventions, and support of district governments in implementing local-level regulations and other technical aspects of the project, such as aquaculture development, environmental and fish health management, and culture-based fisheries management. A PMO established in the DGA was headed by a project director who was responsible for day-to-day project management and coordination. A national steering committee (NSC) was established by the MMAF to guide the overall direction of the project and ensure interagency coordination. The members of the NSC were the MMAF, BAPPENAS, the MOF, and the Ministry of Home Affairs. During project implementation, it was evident that the participation of the Ministry of Home Affairs in coordinating with district agencies was not needed since the MMAF was directly coordinating with the DFSs in the five project districts. The NSC was supported by a national technical committee headed by the NSC secretary. At the regional level, a regional advisory committee composed of representatives from the participating district government agencies was established by the head of the district to oversee project coordination among the different local agencies and liaise with the NSC. PIUs in the five project districts were established to supervise, coordinate, and manage field-level project activities in their respective districts. G. Conditions and Covenants 31. None of the major covenants were modified, suspended, or waived, as most conditions and covenants were relevant and realistic to the project s needs. The government s overall compliance with the loan covenants has been generally satisfactory. There were no major instances of noncompliance except for the following covenants that were partially complied with: (i) inadequate environmental screening in the construction of aquaculture facilities due to the resignation of environment specialists in the PMC because they were not qualified to take up the assignment, and (ii) unmet requirement to establish the project performance monitoring system, since the function of this system was carried out by the PMC. The executing agency took adequate care in meeting all the physical, financial, social, and environmental requirements. Audit reports on project financial statements and accounts were prepared on time by government s auditor and were all unqualified. The status of compliance with loan covenants is shown in Appendix 7.

21 9 H. Consultant Recruitment and Procurement 32. The project engaged person-months of consultancy services (compared to person-months at appraisal) comprising 60.6 person-months of international consultants (56.0 person-months at appraisal) and person-months of national consultants (616.0 personmonths at appraisal) in accordance with ADB s Guidelines on the Use of Consultants (2013, as amended from time to time) (Appendix 8). The actual inputs exceeded those estimated at appraisal because of the need to meet actual project requirements, particularly for the positions of team leader, deputy team leader, and civil engineer/infrastructure planner. The project employed NGOs and CEWs to assist local communities in carrying out aquaculture and related activities. There was a minor change in the consultant selection method approved by ADB on 12 March 2011 to allow engagement of individual community development specialists if there were no qualified NGOs. 33. The PMO and the PIUs were responsible for the procurement of all production and processing inputs, equipment, vehicles, and services. The bulk of the materials procured under the project consisted of production and processing inputs that were provided to the project beneficiaries on a grant basis. The production and processing inputs were procured using shopping procedure since each of the supply contracts was relatively small (less than $3,000 per contract). The total value of the input assistance (which ranged from $460 to $1,440 per fish farmer for production assistance and per women s group for processing assistance) provided to more than 14,000 project beneficiaries reached more than $10 million. Likewise, most of the equipment for the project was procured using shopping procedure. There were few pieces of large equipment for the aquaculture technical centers, which were procured using national competitive bidding procedure. The PIUs also engaged training providers to provide training courses and workshops for project beneficiaries involved in aquaculture enterprises or fish processing. The PMO also undertook three surveys: (i) the midterm survey, which was financed by the project; (ii) an outcome survey-cum-formulation of a proposed second phase project, which was financed by the project; and (iii) a project completion survey, which was financed through government funds. I. Performance of Consultants, Contractors, and Suppliers 34. The overall performance of the PMC at the central and district levels was satisfactory. The PMC provided support to the PMO in the formulation of the DGA s policies on (i) the recruitment of CEWs by the PIUs, (ii) the provision of production input assistance to project beneficiaries, (iii) implementation of the gender action plan, (iv) environmental monitoring and evaluation, and (v) the use of beneficiary groups in the construction of simple civil works. The PMC s assistance to the PMO and the PIUs in (i) project implementation, (ii) monitoring and evaluation, (iii) the supervision of large civil works and production input contracts, and (iv) the preparation of monitoring reports contributed to the success of the project. 35. The performance of the NGOs and CEWs was satisfactory in providing assistance to the PIUs in the selection, mobilization, and strengthening of the project beneficiaries. The performance of most of the consultants recruited under the project was satisfactory except for the detailed engineering design and supervisory consultants for civil works. The design of production roads, seaweed storage areas, rehabilitation of irrigation canals, and water quality and health laboratories should have been consulted with local public works services. The performance of all the community contractors in undertaking simple and small civil works was highly satisfactory because the project beneficiary groups were committed to completing the contracts on time and of good quality. Similarly, the performance of small civil works contractors

22 10 was generally satisfactory in most of the project districts. Most of larger civil work contractors in the project districts showed satisfactory performance except the two contractors in Langkat and OKI, where the construction of production or access roads was not completed. The performance of the suppliers responsible for the distribution of production inputs to project beneficiaries was also satisfactory. J. Performance of the Borrower and the Executing Agency 36. The performance of the government as the borrower is rated satisfactory. The PMO and the PIUs demonstrated good performance capacity in expediting the procurement process. The heads of the DFSs in all the project districts successfully set up all the necessary local implementation arrangements and coordinated their activities with other agencies. The performance of the DGA as the executing agency is also rated satisfactory since it was able to successfully complete the project on schedule despite a 2-year start-up delay in project implementation as a result of good management and operation, and implementation efficiency and effectiveness. The DGA was able to effectively coordinate with other agencies and with the district governments. The strong support provided by the MOF and BAPPENAS to the project also contributed to its success. From February 2008 to December 2013, the government promoted the provision of an adequate and timely budget for the project. The MOF assisted the project in the approval of budget revisions proposed by the PMO and the PIUs, and in the submission of withdrawal applications to ADB. The coordination and monitoring meetings between BAPPENAS and the DGA to assess the progress of the project were valuable in formulating immediate actions or measures to address major implementation problems. Additionally, the project helped improve the institutional capacity of the DGA and PIUs. K. Performance of the Asian Development Bank 37. ADB consistently provided timely advice and assistance, and monitored the project closely during implementation. ADB fielded a project inception mission, 12 regular project review missions (i.e., two missions per year), a midterm review mission, and a PCR mission. The review and midterm missions were useful in recommending time-bound actions to improve project implementation to the PMO, PIUs, and PMC, who then implemented these actions, which were effective in resolving implementation issues. ADB acted promptly on the government s requests for minor changes in project scope, output targets, and loan reallocation. The assistance provided by ADB in adjusting the project scope and outputs helped the project achieve its intended outcomes. Overall, ADB s performance is rated satisfactory. A. Relevance III. EVALUATION OF PERFORMANCE 38. The project is rated highly relevant in expanding the country s aquaculture production and addressing the policies and strategies of the government and ADB for poverty reduction, sustainable economic growth, and social development. The project was designed to address low production of fish and other aquatic products by poor fish farmers and coastal communities. It adopted a holistic approach of poverty targeting; community participation; capacity building for the project implementers and project beneficiaries; and microenterprise business development in aquaculture production and processing to improve income, nutrition, and employment status of project beneficiaries. Its completion has already created a demand for replication. Encouraged by the success of the project, the government has considered replicating the project in other coastal districts with a high incidence of poverty and food security problems.

23 11 B. Effectiveness in Achieving Outcome 39. The project is rated highly effective in meeting most of its objectives and outcomes. The goals of the project as stated in the design and monitoring framework were to reduce poverty and increase food security among poor fish farmers and coastal communities. Results from the project completion survey conducted from April to June 2013 shows that the project significantly contributed to reducing poverty incidence in the five project districts from 15% 25% of the population in 2006 (prior to project approval by ADB) to 10% 16% in 2011 (Appendix 10, Table A9.1). Survey results also reveal that the nominal household income, on average, increased from Rp1.28 million in 2004 to Rp19.58 million in At the 2014 price level, real household income improved from Rp2.25 million in 2004 to Rp21.95 million in Moreover, the project directly benefited 14,585 poor fish farmer households, which was 104% of the 14,000 target. At project formulation in 2006, the target set for increased food security was a 20% increase in food and non-food expenditures and fish consumption by year 6 in All the project districts exhibited increases in food expenditure, although the percentage increase in fish consumption in Langkat and Karawang districts was less than the target of 20% since fish consumption in those districts had been high before project implementation. The overall average increase in fish consumption in the five project districts from 2006 to 2013 was 83%, thus exceeding the target of 20% (Appendix 9, Table A9.2). 40. With regard to the project s outcome performance, results of household surveys of project beneficiaries who received production input assistance and other assistance from PIUs show that production and productivity of fish and other aquatic products increased by an average of 60% and 84%, respectively, compared to the targeted minimum increase of 20%, while the project beneficiaries net income without labor improved by 70% compared to the targeted minimum increase of 30% (Appendix 10). The overall increase in production and productivity of fish and other aquatic products as well as the beneficiaries net income can be attributed to the project s production input assistance, training, extension services, improvement of infrastructure, and provision of other facilities. Based on interviews with some project beneficiaries, the PCR mission found that their production and net income further increased after project completion because (i) they reinvested the additional income earned as a result of the project to expand their aquaculture enterprises, and (ii) there were better weather conditions. As a result of its input assistance, the project generated 306,382 person-days of employment consisting of 296,653 person-days of employment in civil works activities for the poor fishing households and 9,729 person-days of employment in aquaculture activities (Appendix 11). C. Efficiency in Achieving Outcome and Outputs 41. The project is rated efficient in achieving outcome and outputs since it was cost-effective. The project achieved 81% of its project outputs 1 year ahead of schedule at the same cost despite start-up delays resulting from the inability of the DGA to process budgetary allocations for district-level activities in The PMO and the PIUs managing the project efficiently with the assistance of the PMC, and ADB provided efficient support, supervision, and administration. 42. Results of the financial analysis of 19 representative aquaculture enterprises indicate that investments in 18 of these enterprises are financially viable. Only the rice-fish culture was not financially viable due to the high cost of feed and wages. The financial internal rates of return of the financially viable aquaculture investments range from 53% to more than 100%, which are above the prevailing financial cost of capital of 10%. Using 2014 constant prices, the reevaluated base case economic internal rate of return (EIRR) of 40.75% for the project as a whole indicates that the project is still economically viable. The resulting positive net present

24 12 value for the 20-year period at a social discount rate of 12% indicates that the project is expected to generate approximately Rp billion for the Indonesian economy. The estimated switching values show that even with large changes in costs (65.6%) and benefits (191.0%), the project will be able to maintain an EIRR equal to 12%, or the social opportunity cost of capital. Details of the financial and economic analyses, including assumptions and sensitivity analyses, are shown in Appendix 12. D. Preliminary Assessment of Sustainability 43. To support the continuation of project activities after project completion and promote sustainability of project outcomes and achievement of project impact, a high-level exit strategy meeting was held in December One of the sustainable measures agreed upon during the meeting was the budgetary commitment of the district governments to enable the DFS to provide continued capacity building activities to further strengthen project beneficiary groups and extend technical support and production input assistance to these groups. The budgetary support was also intended to cover the salaries of the contractual CEWs and the operating costs of the DFSs for project monitoring activities. The PCR mission noted that after project completion, the DFSs in all the project areas have mainstreamed and continued supporting the project beneficiaries using their own limited resources and/or budgets from the district governments and the MMAF. In 2014, the five DFSs and MMAF committed a total of $1.04 million to support the project s operation and maintenance (O&M) and other costs (Appendix 13). Among the five project districts, only Karawang has been able to continue hiring the CEWs at a salary rate higher (Rp1,700,000 per month) than that fixed by the government (Rp600,000 per month). The other four districts either rehired the CEWs at the government salary rate only for a few months or did not extend their contracts after project completion. In Langkat District, voluntary CEWs from the local community were recruited by the district s extension agency. 44. The PCR mission founds that most of the beneficiary groups organized under the project are still functioning and active. The PCR mission s interactions with various beneficiary groups (e.g., project beneficiary groups, associations of project beneficiary groups, women s processing groups, and cooperatives) also revealed that the groups interviewed have become successful in their aquaculture-based enterprises and have shown self-reliance in their business operations. These groups have expanded their aquaculture businesses (e.g., by increasing the number of cages, ponds, and rafts for seaweed culture) using their own savings obtained from the increase in their incomes resulting from the production assistance and training provided by the project. While cooperatives in particular have shown self-reliance, project beneficiary groups, association of project beneficiary groups, and women s groups need further extension, credit, and marketing support from the DFS in their aquaculture and processing enterprises to support their long-term sustainability. Some of these groups need further assistance in terms of product development, access to credit, marketing of their products, and organizational strengthening to transform them into cooperatives. The DFSs in the project districts need to cooperate with other agencies (e.g., district cooperative service) and the private sector to provide these services. 45. Officers and selected members of cooperatives interviewed by the PCR mission reported that they have been providing services to their members, such as bulk purchase of production inputs that they sell to their members at cheaper prices, microlending, savings mobilization, and group marketing. The PCR mission also observed that because the project fostered mutual help and cooperation among the project beneficiaries, a sense of volunteerism has been instilled among them, as evident from their willingness to continue operating and maintaining the aquaculture infrastructure facilities renovated and constructed under the project. Based on the strong commitment from the MMAF and district governments to provide

25 13 continuous financial support, the expected growth of cooperatives in the project districts, and indications that investments made under the project are relevant to the communities, the project s sustainability is rated most likely. E. Impact 46. In general, the project brought about positive economic, social, institutional, and environmental impacts. The economic impacts include (i) increased incomes from aquaculture enterprises; (ii) increased employment opportunities, (iii) increased opportunities for women to increase their incomes from fish processing and aquaculture production activities, and (iv) increased savings of the household beneficiaries, which were re-invested in their existing enterprises. The project significantly contributed to reducing poverty incidence in the five project districts from 15% 25% of the population in 2006 to 10% 16% in 2011, and increasing household income, on average, from Rp1.28 million in 2004 to Rp19.58 million in The project s social impacts include (i) improved food security and nutrition of poor fishing households, (ii) increased fish consumption, and (iii) improved health and hygiene through the provision of water supply facilities, The most significant social impact was the empowerment of fish farmers and women. In addition to the income opportunities that they enjoyed as a result of the project, women have substantially benefitted in terms of empowerment. Women made up 25% of the total project beneficiaries. Women membership accounted for 14% of the total project beneficiary groups, 92% of the total processing groups, and 23% of the total cooperatives. Women participation in training on aquaculture production and processing has significantly improved their opportunities to engage in livelihood enterprises to earn and increase their family income. Women beneficiaries in all project districts reported that the project addressed their immediate economic needs, enhanced their status in the community, increased their self-confidence, and empowered them to express their views on how to operate or manage their aquaculture production or processing enterprises. Appendix 14 presents a summary of gender equality results and achievements. 48. The project s institutional impact is significant in terms of strengthened institutions. The project developed strong institutional capacity and good coordination and teamwork among national and district governments, with the assistance of NGOs and CEWs, and supported by active participation of project beneficiaries. 49. The project s environmental impact is positive arising from improved aquaculture resource management at farm and district levels. As a result of training and extensions, fish farmers learned and adopted the recommended fingerling or seed stocking rate and the appropriate feeding and fertilizer rates to ovoid or minimize water pollution in their ponds or cages. The overall project s impact is significant. IV. OVERALL ASSESSMENT AND RECOMMENDATIONS A. Overall Assessment 50. The overall performance of the project is rated highly successful because it (i) is highly relevant to the government s and ADB s policies of reducing poverty and promoting sustainable aquaculture development, (ii) is highly effective in meeting most of the indicators set in the design and monitoring framework, (iii) is efficient in cost, (iv) is most likely sustainable after project completion, and (v) has a significant impact. The reevaluated EIRR of 40.75% indicates that the project is economically feasible. Despite initial implementation problems, the project met

26 14 most of the intended outputs and outcomes in most project sites as well as the impact targets (Appendix 1). The major factors that contributed to the success of the project were (i) the strong institutional capacity of the DGA as the executing agency, (ii) the good facilitation and leadership skills of the PMO and the PIUs, (iii) close coordination and teamwork among the national agencies (BAPPENAS, MOF, MMAF) and district governments, (iv) the dedication of the NGOs and CEWs in organizing and strengthening community groups, and (v) the active participation of project beneficiaries in the implementation of project activities. B. Lessons 51. The following lessons are drawn from the project: (i) (ii) (iii) (iv) (v) (vi) (vii) The delay in project start-up could have been avoided if the government had issued Government Regulation No. 7 of 4 February 2008 immediately after project effectiveness. The project adopted excellent design features of poverty targeting, community participation, capacity building for both the project implementers and the project beneficiaries, and microenterprise business development in aquaculture production and processing. The project developed strong institutional capacity and good coordination and teamwork among national and district agencies, encouraged dedication among the NGOs and CEWs, and supported the active participation of project beneficiary groups. Gender mainstreaming through group formation and capacity building training programs in aquaculture production and food processing is an effective strategy in empowering women. Forming and strengthening cooperatives is a good strategy in sustaining project benefits after project completion. Use of voluntary extension workers recruited from local communities by district agencies will help ensure continuity of extension services to local project beneficiaries. A functional management information system should have been developed in DGA. C. Recommendations 1. Project Related 52. Future monitoring. The DFSs in the five project districts should continue their monitoring activities after project completion. They need to regularly monitor (i) the organizational performance and activities of the various beneficiary groups under the project (project beneficiary groups, associations of project beneficiary groups, women s groups, and cooperatives); (ii) the problems encountered in these groups aquaculture or processing enterprises, including the financial performance of these enterprises; and (iii) the status of various infrastructure facilities constructed or provided by the project. This monitoring will help support the viability and sustainability of the post-project impact. The project beneficiary groups should conduct participatory monitoring and evaluation. 53. Handover of project assets. To help monitor and assess the needs of the different community groups formed under the project in the project districts, the DGA should fast-track the formal handing over of the project's physical assets (e.g., motorcycles and other vehicles) to the DFSs to enable them to request budgetary support from the district governments for the operation and maintenance of these assets. National physical assets such the fish health and quality laboratories should be operated and maintained continuously.

27 Budgetary support. Full commitment of the district and national governments should be encouraged to provide budgetary support for (i) monitoring and evaluation activities of the DFSs in the five project districts, and (ii) the provision of input and technical assistance to the project beneficiary groups after project completion. Adequate budget should also be allocated to rehire additional extension workers since the DFSs in the project districts, especially in OKI and Buton, have a limited number of extension personnel. 55. Capacity building of community organizations and groups. Further training on cooperative organization and management should be conducted for the fish farmer groups, including women s groups, since some of the associations would like to be transformed into cooperatives to (i) improve their access to financing institutions, and (ii) enable them to provide more economic services to their members. This would necessitate closer collaboration and linkages between the DFS and the district cooperative service in each project district. 56. Market assistance. Market assistance should be continuously provided by DFSs, especially for the fish farmer groups that are now producing large volumes of fish and aquatic products, by establishing market linkages or facilitating market arrangements with potential buyers. 57. Further action or follow-up. The DGA and the DFSs, especially those in Karawang, OKI, and Buton, should seek the support of the Ministry of Environment and Forestry and district heads in resolving the worsening water quality problems in the project districts caused by the dumping of industrial waste in rivers, mining, and other agricultural activities. The DGA, the Ministry of Environment and Forestry, and the district heads should hold multisectoral meetings with representatives from the industrial and mining companies as well as from selected project beneficiary groups to address the water quality problems that have adversely affected the aquaculture subsector in the project districts. Moreover, the DFSs in Karawang, OKI, and Buton should urgently implement the action plans recommended by the PMC to improve local water quality. 2. General 58. Replication of the project. The government has considered replicating the project in other coastal districts with a high incidence of poverty and food security problems. The government could therefore start planning the design of the new project by considering the excellent design features of the project (para 5.), the factors that contributed to its success, and replicable lessons from the project. 59. Formulating measurable output indicators. In designing the proposed future project, the output indicators should be quantitatively and qualitatively measurable to avoid potential refinements during implementation.

28 16 Appendix 1 Design Summary Impact Reduced poverty and increased food security in five rural districts DESIGN AND MONITORING FRAMEWORK Performance Targets/Indicators Food and non-food expenditures and fish consumption (about Rp155,000 in 2004) up 20% by year 6 Achievements At Project Completion Review Results from the project completion survey conducted from April to June 2013 shows that fish consumption in the project districts, on average, increased by 83% from 2006 to 2013, exceeding the target of 20%. Outcome Increased fish production through sustainable aquaculture development Outputs Component 1: Aquaculture Production Enhancement Communities organized and empowered; social infrastructure and facilities improved; fish production in freshwater, brackishwater, and mariculture enhanced Incomes of 14,000 poor households increased to above the poverty line by year 6 Production, productivity, and range of products for all types of aquaculture operations increased from 2006 levels by at least 30% by year 6 Income (about Rp320,000 in 2004) of fish farmer households and communities up 20% by year 6 About 18,000 jobs created by the project by year 6 About 14,000 poor households organized and participate in community managed aquaculture enterprises Brackishwater aquaculture and mariculture: - 5,700 hectares of fish ponds rehabilitated and managed; Based on the results of the project completion survey, the project significantly contributed to reducing poverty incidence in the five project districts from 15% 25% of the population in 2006 to 10% 16% in Survey results also revealed that the total household income, on average, increased from Rp1.28 million in 2004 to Rp19.58 million in Moreover, the project directly benefited 14,585 poor fish farmer households, which exceeded the target of 14,000 households. Results of the household surveys conducted by the PMO and the CEWs from 2009 to 2012 show that production and productivity of fish increased by an average of 60% and other aquatic products increased by an average of 84%, which exceeded the target minimum increase of 30%. The household surveys also showed that the project beneficiaries net income improved by 70%, which surpassed the target of at least a 20% increase. The project generated 306,382 person-days of employment consisting of 296,653 person-days of employment in civil works activities for the poor fishing households and 9,729 person-days of employment in aquaculture activities. Achievement of the employment target could not be quantified because it is not clear whether this indicator refers to 18,000 persondays of jobs. 14,585 beneficiaries (compared to the targeted 14,000) were organized and participated in community-managed aquaculture enterprises. 3,277 hectares of ponds were rehabilitated in Langkat, OKI, and Karawang, achieving only 80% of the revised target of 4,100 hectares.

29 Appendix 1 17 Design Summary through rehabilitation and establishment of community-based aquaculture systems Performance Targets/Indicators this target was revised to 4,100 hectares of fish ponds due to much smaller potential area for brackishwater development in OKI units mariculture cages established and managed brackishwater and mariculture demonstration units established; this target was revised by disaggregating to 100 brackishwater demonstration units and 50 mariculture demonstration units hectares of seaweed culture facilities developed Freshwater aquaculture: - 45 hectares of fish ponds rehabilitated or established units demonstration facilities established (including for rice fish culture) Hatcheries: - 27 freshwater hatcheries established; this target was revised as follows: 20 freshwater hatcheries and 7 mariculture hatcheries established to cover both types of aquaculture - 10 nurseries established, but expanded to include seaweed nurseries or seaweed gardens in mariculture areas Other infrastructure: units of water supply facilities provided - 60 kilometers of access roads and pathways rehabilitated Achievements At Project Completion Review 533 mariculture cages established primarily to grow grouper were constructed in Langkat and Buton, exceeding the target by 78%. 107 brackishwater demonstration units were established, exceeding the revised target by 7%; 69 mariculture demonstration units were established, exceeding the revised target by 38%. The project constructed 582 hectares of seaweed culture facilities, exceeding the target by 16% hectares of freshwater ponds were rehabilitated in Karawang and Sumedang, exceed the target by 248%. 76 total demonstration ponds were established in freshwater aquaculture in OKI, Karawang, and Sumedang, meeting only 76% of the target. 31 total freshwater hatcheries were constructed for the production of fingerlings in Sumedang and OKI, exceeding the target by 55%. The total number of mariculture hatcheries constructed was short of the target, since only four were established. The project fully met the target of establishing 10 nurseries, including seaweed gardens in mariculture areas. The project exceeded the target and constructed 166 units of water supply facilities comprised of a large water supply facility equivalent to 130 units in OKI and 36 smallscale water supply units in Langkat, Karawang, and Buton. The project rehabilitated kilometers in Langkat, OKI, Karawang, and Buton. There were two unfinished production road rehabilitation contracts in Langkat and OKI in 2012.

30 18 Appendix 1 Design Summary Component 2: Aquaculture Support Services Production techniques and quality of aquaculture products improved through strengthened extension services and improved post-harvest handling, processing and marketing Performance Targets/Indicators Some 3,500 community groups served by extension workers; this target was reduced to 930 target groups since the actual number of project beneficiaries in each group actually ranged from members instead of 4 About 1,250 of women sgroups served by extension workers; this target was reduced to 200 groups since the number of members per group was larger than estimated at appraisal but the number of women participation in the project activities should still meet the 30% target At least 300 fisheries extension activities conducted in all project sites by year 6 At least 50% of project beneficiaries assisted in gaining access to various financing schemes Fish post-harvest and economic losses reduced by 30% Value of cultured fish and other aquatic products increased by 20% Sales of cultured fish increased by about 30% by year 6 Achievements At Project Completion Review The CEWs served 1,023 community groups, indicating an achievement rate of 110% compared to the revised target. The total number of women s groups served by CEWs was 139. In addition to this, CEWs served women members (13%) of the total project beneficiary groups. The CEWs held a total of 18,888 meetings with the beneficiary groups in all the project districts. Provision of financial assistance to project beneficiaries was not included in the project design. Nevertheless, the project assisted some associations of project beneficiary groups to form 40 cooperatives to have better access to credit from financial institutions. Results of the project completion survey conducted from April to June 2013 showed that the provision of processing and post-harvest equipment under the project resulted in a 55% reduction of post-harvest and economic losses (from an average of 11.3% before the project to 5.0% with the project) compared to the targeted 30% reduction. Based on the results of the project completion survey, the project beneficiaries, on average, obtained a 27% increase in the value of their products with the project compared to the without project scenario. The increase in the value of harvested products was attributed to the higher price received as a result of the use of improved species, better quality of cultured fish and other aquatic products, and lower percentage of post-harvest losses. Results of the project completion survey revealed that, on average, there was an increase of about 5.6% in the sale of harvested products with the project (from 87.1% before the

31 Appendix 1 19 Design Summary Performance Targets/Indicators Market information, including price information, for fish and other cultured commodities effectively disseminated to target beneficiaries Water quality in aquaculture production areas improved in all project districts Achievements At Project Completion Review project to 92.7% with the project) compared to the target of 30.0%. The small increase in the sale of harvested products was attributed to the already high percentage of sales of harvested products before the project. Using cell phones as a simple and effective market information network, the PIU staff and the CEWs were able to easily and effectively disseminate information on real-time prices of fish and other aquatic products as well as potential market outlets to the chairpersons of the project beneficiary groups, who relayed the market information to their members. Water quality in aquaculture production areas improved in only Langkat and Sumedang but deteriorated in Karawang, OKI, and Buton. Component 3: Institutional Strengthening and Project Management Capacity of nationaland district-level institutions, including private sector institutions, in aquaculture development and management strengthened; and establishment and operation of project management office and units supported Water quality and fish disease laboratories established and functional at project sites Applied aquaculture research (e.g., broodstock development, seed production, and feed development), ecological assessment studies, and other special studies conducted by suitable research and academic institutions 45 fisheries personnel of the DGA and participating district fisheries services trained in aquaculture, environment, and related fields 70 extension officers (community-based and district fisheries service staff) provided with training and transport equipment Four water quality and fish disease laboratories were established (one each in OKI, Langkat, Sumedang, and Buton). The PIU in Karawang decided not to construct a new laboratory and instead relied on the services provided by the provincial water quality and fish health laboratory in the area since the district did not have trained technicians to operate a laboratory. There was no applied research undertaken by the PIUs in the project areas since (i) the PIU staff did not have the expertise and experience in conducting applied research; and (ii) the national aquaculture development centers located in 15 strategic sites in Indonesia were already conducting applied research in freshwater culture, brackishwater culture, and mariculture. During , 222 staff (55 staff from DGA and PMO and 167 staff from the five PIUs) received training. 72 CEWs engaged by PIUs were given (i) adequate training in the national aquaculture development centers in Sukabumi, Jepara, and Lombok, and (ii) transport equipment before they were assigned to work in the project villages to strengthen the districts fisheries extension service.

32 20 Appendix 1 Design Summary Performance Targets/Indicators Five aquaculture technical centers upgraded, renovated, or newly established Computer-based aquaculture information system developed and installed at DGA and linked to the participating districts and to offices concerned Aquaculture-related information materials produced and distributed Up-to-date and consistent information presented in published materials PMO and PIUs established in DGA and five project districts PMO and PIUs adequately staffed and equipped with necessary facilities Annual project implementation achievements consistent with predetermined or planned implementation targets for each year Funds budgeted for project disbursed and utilized in a timely manner Achievements At Project Completion Review The project upgraded, renovated, or newly established 12 aquaculture technical centers in Ujung Batee, Batam, Jambi, Lampung, Mandiangin, Sukabumi, Karawang, Situbondo, Takalar, Ambon, Tatelu, and Lombok to help them carry out their functions and responsibilities to develop improved species and technology, and to multiply improved species on a large scale for distribution to fish farmers. The computer-based aquaculture management information system was installed at the DGA in 2010, but it was not linked to the participating districts and offices because the system that was linked to the DGA website was not compatible for use by the PIU staff in the collection and dissemination of project data. The PMC produced 29 high-quality reports, guidelines, and presentations that were distributed to the PMO, the PIUs, the CEWs, and the nongovernment organizations. The PMO and the PIUs prepared 15 quarterly project management reports and six annual reports, which were submitted to ADB, the Ministry of Finance, the National Development Planning Agency, and the Ministry of Marine Aquaculture and Fisheries. The PMO in the DGA and the PIUs in the five project districts were established in July The PMO and the PIUs were adequately staffed and equipped to meet project requirements. Except during as a result of the 2- year project delay when the ADB loan was not yet available, annual project implementation achievements were consistent with predetermined or planned implementation targets for each year. Disbursements started in 2008 and significantly increased in 2011 and The highest amount of disbursement ($11.32 million) was in 2012 when the PMO and PIUs, with the assistance of the PMC, helped accelerate project implementation activities. Note: Revised performance targets became effective on 2 April 2012 after the midterm review. ADB = Asian Development Bank, CEW = community-based extension worker, DGA = Directorate General of Aquaculture, OKI = Ogan Komering Ilir, PIU = project implementing unit; PMO = project management office. Sources: ADB Report and Recommendation of the President to the Board of Directors: Proposed Loan for Sustainable Aquaculture Development for Food Security and Poverty Reduction Project. Manila; Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta.

33 Appendix 2 21 SUMMARY OF PROJECT OUTPUTS AND ACCOMPLISHMENTS Table A2.1: Achievements in Project Outputs, No. Output Target Achievement Target (%) Component 1: Aquaculture Production Enhancement 1 Number of households organized and who 14,000 14, participated in community-managed aquaculture enterprises 2 Total area of rehabilitated and managed 4,100 3, brackishwater ponds (hectares) 3 Number of established and managed mariculture cages 4 Number of brackishwater demonstration units established 5 Number of mariculture demonstration units established Number of mariculture hatcheries established 7 Total area of seaweed culture facilities developed (hectares) Total area of freshwater ponds rehabilitated (hectares) 9 Number of freshwater demonstration units established Number of freshwater hatcheries established 11 Number of water supply facilities provided Length of production or access roads rehabilitated (kilometers) Component 2: Aquaculture Support Services 13 Number of community groups served by 930 1, extension workers 14 Number of women s groups served by extension workers 15 Number of extension activities conducted ,888 6,296 in all project sites 16 Number of project beneficiaries receiving production input assistance 14,000 14, Fish post-harvest and economic losses Reduced by Reduced by 183 (%) 30% 55% 18 Value of cultured fish and other aquatic Increased by Increased by 135 products (%) 20% 27% 19 Sales of cultured fish (%) Increased by 30.0% Increased by 5.6% Market information, including price Market Network 100 information for fish and other cultured commodities, effectively disseminated to target beneficiaries information network established in five districts established starting Water quality in aquaculture production areas improved in all project districts Water quality improved in Langkat, OKI, Water quality improved in Langkat and 40

34 22 Appendix 2 No. Output Target Achievement 22 Number of water quality and fish diseases laboratories established and operational 23 Applied aquaculture research conducted by suitable research and academic institutions Karawang, Sumedang, and Buton Sumedang, but deteriorated in Karawang, OKI, and Buton Target (%) Research carried out by suitable research and academic institutions Research carried out by national aquaculture development centers Component 3: Institutional Strengthening and Project Management 24 Number of personnel of DGA and participating district fisheries services trained in aquaculture environment and related fields 25 Number of community-based extension workers provided with training and transport equipment 26 Five aquaculture technical centers upgraded, renovated, or newly established 27 Computer-based aquaculture information system developed and installed at DGA and linked to the participating districts and relevant offices 1 Developed and installed in DGA but not in PIUs Aquaculture-related information materials produced and distributed 29 Up-to-date and consistent information presented in published materials 30 PMO and PIUs established in DGA and five project districts 31 PMO and PIUs adequately staffed and equipped with necessary facilities 32 Funds budgeted for project disbursed and utilized in a timely manner Implemented Published quarterly and annually PMO and five PIUs Adequately staffed and equipped 29 sets of guidelines prepared by the PMCs distributed to PMO and PIUs 15 project management reports and 6 annual reports published by PMO during Established in 2007 Completed in 2008 and 2009 Achieved starting DGA = Directorate General of Aquaculture, OKI = Ogan Komering Ilir, PIU = project implementation unit, PMC = project management consultant, PMO = project management office. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta

35 Appendix 2 23 Table A2.2: Fish Ponds and Irrigation Canals Rehabilitated and Improved in Freshwater Areas, District Total Total Area of Fish Ponds Rehabilitated and Improved (hectares) OKI Karawang Sumedang Total Total Length of Irrigation Canals Rehabilitated and Improved (kilometers) OKI Karawang Sumedang Total OKI = Ogan Komering Ilir. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta. Table A2.3: Fish Ponds and Length of Canals Renovated, District Total Total Area of Fish Ponds Rehabilitated and Improved in Brackishwater Area (hectares) Langkat OKI ,010 Karawang , ,867 Total 0 1,100 1, ,277 Length of Irrigation/Drainage Canals Improved in Brackishwater Area (kilometers) Langkat OKI Karawang Total OKI = Ogan Komering Ilir. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta. Table A2.4: Mariculture Cages Established and Managed, (units) District Total Langkat Buton Total Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta.

36 24 Appendix 2 Table A2.5: Demonstration Ponds Constructed, (units) Freshwater Brackishwater District Mariculture Ponds Ponds Total Langkat OKI Karawang Sumedang Buton Total OKI = Ogan Komering Ilir. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta. Table A2.6: Freshwater and Mariculture Hatcheries Constructed, (units) District Total Langkat OKI Karawang Sumedang Buton Total OKI = Ogan Komering Ilir. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta. Table A2.7: Seaweed Culture Facilities Developed in Buton, Total Total number of beneficiaries , ,912 receiving production input assistance Total area of seaweed culture facilities established (hectares) Note: Each beneficiary was given assistance to grow an average of 0.2 hectares of seaweed. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta. Table A2.8: Water Supply Units Constructed or Improved, (units) District Total Langkat OKI Karawang Sumedang Buton Total OKI = Ogan Komering Ilir. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta.

37 Appendix 2 25 Table A2.9: Production Roads Constructed or Improved, (kilometers) District Total Langkat OKI Karawang Sumedang Buton Total OKI = Ogan Komering Ilir. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta. Table A2.10: Meetings Held by Community Extension Workers with Project Beneficiary Groups, Number of Meetings Held by CEWs with Project Beneficiary Groups District Number of CEWs Engaged by PIUs Total Average Number of Meetings Per CEWS Per Month Langkat ,405 1, , OKI , , Karawang , Sumedang ,309 1, , Buton ,202 1,527 1, , Total 71 1,143 3,719 6,081 5,397 2,548 18, CEW = community-based extension worker; OKI = Ogan Komering Ilir; PIU = project implementation unit. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta. Table A2.11: Project Beneficiaries Receiving Production Input Assistance, District Aquaculture System Commodity Total Langkat Brackishwater Shrimp Soft-shell crab Subtotal Mariculture Grouper Subtotal Total ,961 Ogan Komering Ilir Freshwater Catfish Asian catfish ,445 Polyculture of carp and tilapia Hatchery (carp, tilapia, catfish, and gurami) Rice-fish culture Ornamental fish Subtotal , ,276

38 26 Appendix 2 District Aquaculture System Brackishwater Commodity Total Polyculture of ,085 shrimp and milkfish Subtotal ,085 Total ,305 1,010 3,361 Karawang Freshwater Carp Tilapia Catfish Asian catfish Polyculture of carp and tilapia Rice-fish culture Ornamental fish Subtotal Brackishwater Milkfish Polyculture of shrimp and milkfish Polyculture of shrimp, milkfish, and seaweed Tilapia Subtotal ,083 Total ,833 Sumedang Freshwater Carp Tilapia ,023 Catfish Gurami Hatchery: Carp Tilapia Catfish Gurami Rice-fish culture Total , ,461 Buton Mariculture Seaweed , ,912 Total , ,912 All Districts All Systems Total 842 2,864 5,614 3,208 12,528 Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta.

39 Appendix 2 27 Table A2.12: Directorate General of Aquaculture and Project Implementation Unit Staff Trained, (number) PMO or PIU Total PMO PIU Langkat PIU OKI PIU Karawang PIU Sumedang PIU Buton Total DGA = Directorate General of Aquaculture, OKI = Ogan Komering Ilir, PIU = project implementation unit, PMO = project management office. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta. Table A2.13: Training Provided to Community-Based Extension Workers District Training Type Training No. of Date Location CEWs Langkat Extension techniques Stabat Jun CEWs Mariculture techniques Lampung 22 Jul 4 Aug Brackishwater techniques Situbondo 22 Jul 4 Aug Gender mainstreaming and Sumedang Sep community mobilization Access to aquaculture credit Bogor 6 9 Dec Strengthening of CEWs Bogor Jun Fishery extension service Lampung 9 12 May Ogan Training on extension and Kayuagung Jul Komering Ilir CEWs technology Training on brackishwater Jepara Jul aquaculture techniques Training on hatchery of catfish Bogor Oct Gender mainstreaming and Sumedang 12 5 Sep community mobilization Training on hatchery in Jambi Jambi Oct Access to aquaculture credit Bogor 6 9 Dec Strengthening of CEWs Bogor Jun Fishery extension service Lampung 9 12 May Training on operation and Kayuagung Oct maintenance of infrastructure facilities Karawang Brackishwater aquaculture Karawang 2 15 Sep CEWs techniques Community development Karawang 29 Sep 12 Oct Freshwater aquaculture techniques Sukabumi 6 19 Oct Gender mainstreaming and Sumedang Sep community mobilization Access to aquaculture credit Bogor 6 9 Dec Strengthening of CEWs Bogor Jun Fishery extension service Lampung 9 12 May

40 28 Appendix 2 District Sumedang CEWs Buton CEWs Training Type Training No. of Date Location CEWs Operation and maintenance of infrastructure facilities Karawang Sep Improved technology of Sukabumi 5 Oct 1 Nov freshwater aquaculture Gender mainstreaming and Sumedang Sep community mobilization Access to aquaculture credit Bogor 6 9 Dec Strengthening of CEWs Bogor Jun Fishery extension service Lampung 9 12 May Environmental protection and Bogor May management Improved technology on Lampung 9 12 May grouper and seaweed culture Improved extension service and Lombok May technology on seaweed Gender mainstreaming and Sumedang Sep community mobilization Access to aquaculture credit Bogor 6 9 Dec Strengthening of CEWs Bogor Jun Fishery extension service Lampung 9 12 May Production input assistance Bogor 8 11 Aug Capacity building in extension Bau Bau Nov CEW = community-based extension worker. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta. Table A2.14: Equipment and Motorcycles Provided by Project Implementation Units to Community-Based Extension Workers Number of Number of Number of Number of Extension Water Quality District Vehicles CEWs Equipment Equipment (units) (sets) (sets) Langkat motorcycles Ogan Komering Ilir 15 7 motorcycles and 5 boats Karawang motorcycles Sumedang motorcycles Buton motorcycles Total motorcycles and 5 boats CEW = community-based extension worker, PIU = project implementation unit. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta.

41 Appendix 2 29 Table A2.15: List of Aquaculture Technical Centers Upgraded, No. Name of Technical Centers Location Specialization 1 Technical Center for Mariculture, Ujung Aceh, Sumatra Mariculture Batee Branch Office 2 Technical Center for Mariculture, Batam Batam, Sumatra Mariculture Branch Office 3 Technical Center for Freshwater Jambi, Sumatra Freshwater aquaculture Aquaculture, Jambi Branch Office 4 National Center for Mariculture, Lampung Lampung, Sumatra Brackishwater and mariculture 5 National Center for Freshwater Sukabumi, West Java Freshwater aquaculture Aquaculture, Sukabumi 6 National Center for Fisheries Production Service, Karawang Karawang, West Java Freshwater and brackishwater aquaculture 7 Technical Center for Mariculture, Situbundo, East Java Mariculture Situbundo Branch Office 8 Technical Center for Brackishwater Mandiangin, Kalimantan Brackishwater aquaculture Aquaculture, Mandiangin Branch Office 9 Technical Center for Brackishwater Takalar, Sulawesi Brackishwater aquaculture Aquaculture, Takalar Branch Office 10 Technical Center for Freshwater Aquaculture, Tatelu Branch Office Tatelu, Sulawesi Freshwater aquaculture 11 Technical Center for Mariculture, Lombok, West Nusa Mariculture Lombok Branch Office Tenggara 12 Technical Center for Mariculture, Ambon Branch Office Ambon, Maluku Mariculture Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta. Table A2.16: List of Technical and Management Reports Prepared by Project Management Consultants No. Name of Report Author 1. Project Management Manual Dimyati Nangju 2. Project Technical Implementation Manual Dimyati Nangu 3. Project Procurement Manual Dimyati Nangju 4. Project Work Plans and Budgets, Dimyati Nangju Guidelines on Budget Monitoring System Darra Irawati 6. Project Performance Monitoring System Muhammad Ilyas 7. Design of Aquaculture Management Information System Muhammad Ilyas 8. Model Agreements Between Project Implementation Units and Bambang Sumartono Project Beneficiary Groups 9. Master Plan for Upgrading the Directorate General of Aquaculture s Sri Lestari Angka Capacity in Fish Diseases Diagnosis, Prevention and Control 10. Training Module for Fish Health Management Sri Lestari Angka 11. Terms of Reference for Local Information Technology Company Muhammad Ilyas 12. Guidelines for Freshwater Aquaculture Development Ateng Kurnia Jagatraya 13. Guidelines for Brackishwater Aquaculture Development Bambang Sumartono 14. Guidelines for Mariculture Development Hartoyo 15. Terms of Reference and Implementation Guidelines for Dimyati Nangju Nongovernment Organization Selection 16. Guidelines on Development of Microenterprises Ali Wigono Wiroto

42 30 Appendix 2 No. Name of Report Author 17. Manual on Preparation of Proposals and Analysis of Ali Wigono Wiroto Microenterprises 18. Successful Livelihood Models for Fish Farmers Bambang Sumartono 19. Training Needs Assessment Soedijanto 20. Training and Extension Plan Soedijanto 21. Master Plan for Aquaculture Research and Development Fuad Chalik 22. Terms of Reference and Procedural Guidelines for Selection of Fuad Chalik Research and Academic Institutions 23. Guidelines on the Project s Processing and Quality Improvement Josephine Wiryanti Interventions 24. Guidelines on Fish Marketing Interventions Lasma Tambunan 25. Environmental Management and Monitoring Plan Supriadi Tumpatih 26. Initial Environmental Examination Supriadi Tumapatih and Detailed Engineering Design Consultants 27. Engineering Plan for the Proposed Civil Works Edy Sulistyono 28. Standard Tender Documents for the Design and Construction of Edy Sulistyono Civil Works 29. Guidelines on Community Mobilization and Social Preparation Agustinah Soewito Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta. Table A2.17: List of Project Management Reports and Annual Reports Submitted to ADB and the Government, Name of Report Period of Coverage Date of Submission to ADB Project Management Report No. 1 1 Jul Sep Oct 2008 Annual Report for Oct 31 Dec Jan Jan 31 Dec 2008 Project Management Report No. 2 1 Jan 31 Mar Apr 2009 Project Management Report No. 3 1 Apr 30 Jun Jul 2009 Project Management Report No. 4 1 Jul 30 Sep Oct 2009 Annual Report for Oct 31 Dec Jan Jan 31 Dec 2009 Project Management Report No. 5 1 Jan 31 Mar Apr 2010 Project Management Report No. 6 1 Apr 30 Jun Jul 2010 Project Management Report No. 7 1 Jul 30 Sep Oct 2010 Annual Report for Oct 31 Dec Jan Jan 31 Dec 2010 Project Management Report No. 8 1 Jan 31 Mar Apr 2011 Project Management Report No. 9 1 Apr 30 Jun Jul 2011 Midterm Report 1 Jan Jun Jul 2011 Project Management Report No Jul 30 Sep Oct 2011 Annual Report for Oct 31 Dec Feb Jan 31 Dec 2011 Project Management Report No Jan 31 Mar Apr 2012 Project Management Report No Apr 30 Jun Jul 2012 Project Management Report No Jul 30 Sep Oct 2012

43 Appendix 2 31 Name of Report Period of Coverage Date of Submission to ADB Annual Report for Oct 31 Dec Jan Jan 31 Dec 2012 Project Management Report No Jan 31 Mar Apr 2013 Project Management Report No Apr 30 Jun Jul 2013 Project Management Report No Jul 30 Sep Oct 2013 Project Completion Report 13 Jul Dec Oct 2013 ADB = Asian Development Bank. Source: Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta.

44 32 Appendix 3 PROJECT COST BY EXPENDITURE AND FINANCIER Table A3.1: Project Cost by Expenditure and Financier at Appraisal ($ million) Category ADB Government Beneficiaries Total Works Equipment and vehicles Materials Studies, surveys, and research Consulting and NGO services Training Interest/Service charge Unallocated (price contingencies) Vehicles (project management) Training for DGA staff Project management Operation and maintenance Total ADB = Asian Development Bank, DGA = Directorate General of Aquaculture, NGO = nongovernment organization. Source: ADB Report and Recommendation of the President to the Board of Directors: Proposed Loan to Indonesia for the Sustainable Aquaculture Development for Food Security and Poverty Reduction Project. Manila. Table A3.2: Project Cost by Expenditure and Financier, Actual ($ million) Category ADB Government Beneficiaries Total Works Equipment and vehicles Materials Studies, surveys, and research Survey for project completion report Consulting and NGO Services Training Interest/Service Charge Unallocated Project management: Administration by central government Administration by district governments Monitoring and evaluation Operation and maintenance Total ADB = Asian Development Bank, NGO = nongovernment organization. Sources: Indonesia Resident Mission s record (30 September 2014); Directorate General of Aquaculture, Ministry of Marine Affairs and Fisheries.

45 Appendix 4 33 ANNUAL ASIAN DEVELOPMENT BANK LOAN DISBURSEMENTS Table A4: Actual Disbursements by Year, ($) Year Annual Disbursement Actual Cumulative Disbursement Percentage of Actual Cumulative Disbursement (%) , , ,455,232 4,157, ,832,547 9,990, ,930,851 16,920, ,323,809 28,244, ,934,491 31,179, ,265 31,602, Total 31,602,551 31,602, Source: Asian Development Bank Loan Financial Information System.

46 34 Appendix 5 PLANNED AND ACTUAL PROJECT IMPLEMENTATION SCHEDULE

47 Appendix 5 35 Planned Actual Planned (Intermittent Activity) Actual (Intermittent Activity) CEW = community-based extension worker, DFS = district fisheries service, DGA = Directorate General of Aquaculture, NGO = nongovernment organization, PIU = project implementation unit, PMO =project management office. Sources: Asian Development Bank Report and Recommendation of the President to the Board of Directors: Proposed Loan to Indonesia for the Sustainable Aquaculture Development for Food Security and Poverty Reduction Project. Manila; Project Administration Memorandum; Ministry of Marine Affairs and Fisheries, Directorate General of Aquaculture Project Completion Report. Jakarta.