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CURRENCY EQUIVALENTS(As of December 1993)

Currency Unit - Rupiah (Rp)

US$1.00 = Rp 2,105Rp I million - US$475.06

WEIGHTS AND MEASURES

Metric System

GOVERNMENT FISCAL YEAR

April 1 - March 31

ABBREVIATIONS AND ACRONYMS

DGPUOD - Directorate General for Public Administration andRegional Autonomy

DGWRD - Directorate Generl of Water Resources DevelopmentEON - Efficient Operation and MaintenanceGOI - Government of IndonesiaISP - Irrigation Service FeeMPW - Ministry of Pu'-lic WorksO&M - Operation and MaintenancePWRS - Provincial Water Resources ServicesWUA - Water Users Association

FOR OFFICIAL USE ONLY

INDONESIA

JAVA IRRIGATION IMPROVEMENT AND WATER RESOURCES MANAGEMENT PROJECT

Loan and Prolect Summary

Borrower: Republic of Indonesia

Loan Amount: US$165.7 million equivalent

Terms: 20 years, including 5 years of grace at the Bank'sstandard variable interest rate.

Financing Plan; Local Foreign Total-(US$ million)----------

IBRD 70.0 95.7 _E5 2 ---Government 133.8 0.0 133.8Water Users Associations 4.5 0.0 4.5

Total 208.3 95.7 304.0

EconomicRate of Return: 17% (for Irrigation Development and Turnover which

constitutes 62% of project base cost)

Poverty Catesory: Not applicable.

Staff AppraisalReport: Report No. 12872-IND, dated May 25, 1994

Mao: IBRD 25696

This document has a resticted distibution and nay be used by recpients only in the perfoaneof thdiofficialduties. Itscontentsmaynotothewisebedisclosedwithout WorldBankauthodzation. I

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL BANK FOR RECONSTRUCTION ANW DEVELOPMENT

TO THE EXECUTIVE DIRECTORSON A PROPOSED LOAN

TO THE REPUBLIC OF INDONESIAFOR A JAVA IRRIGATION IMPROVEMENT AND WATER RESOURCES MANAGEMENT PROJECT

1. The following memorandum and recommendation on a proposed loan tothe Republic of Indonesia for US$165.7 million equivalent is submitted forapproval. The proposed loan would be for 20 years, including five years ofgrace, at the Bank's standard variable interest rate, and would help finance aJava Irrigation Improvement and Water Resources Management Project.

2. Water Resources and Irrigation Backpround. Java contains60 percent of the Indonesian population (186 million), the bulk of itsindustry and over half of irrigated agriculture (60 percent of the total 5.2million irrigated ha), but only 7-8 percent of its land and water resources.Java faces serious land and water constraints to sustained economic growth.Many river basins face critical water shortages in the dry season, especiallynear the major urban centers. River pollution, mainly from human andindustrial wastes, is serious on many rivers and reduces usable water.Without proper development and management of water resources, requirementsthat compete with irrigation, coupled with neglected maintenance of existingschemes ir the absence of new investment, could undermine Indonesia's foodself-sufficiency, and the vitality of the Javanese rural economy.

3. A tou..al of 3.2 million ha on Java are irrigated, of which 2.7million ha are publicly managed. The bulk of the larger schemes wererehabilitated earlier. About 1.1. million ha, including 700,000 ha on smallsystems, remain unimproved and need rehabilitation or minor upgrading whichwould increase water availability and prevent siltation, leakage, anddeterioration.

4. Water Resources Manakement Issues. Regulations and a legalframework exist in Indonesia to guide integrated water resources management.The most important among them are a Ministry of Public Works (MPW) regulationfor management within designated river basin territories (15 in Java) and aregulation on water allocation and licensing. Fundamental policy andinstitutional adjustments are needed to fully implement effective waterresources management. The majority of river basin operations remainrudimentary at best, deficient in monitoring and communication facilities, anddeficient in hydrological data.

5. Past Experience and Lessons Learned. The Bank has heavilysupported water related projects in Indonesia, e.g. irrigation operationsincluding swamp reclamation, flood control and a multi-purpose dam; largehydro-electric projects; and a number of water supply and irban.drainageprojects. Irrigation has absorbed a major part (27 operations with loans ofsome US$2.0 billion) of Bank lending to Indonesia for agriculture. Theoutcome of Bank-supported completed irrigation projects in Java have all beensuccessful, in contrast to generally poor results of irrigation projects inthe outer islands. Experience from these projects highlights the need for anintegrated approach to water resources manag,ement to relieve the growingproblems of water availability and quality especially near the main urban

centers. Experience also underscores the importance of rehabilitation coupledwith correcting Operation and Maintenance (O&M) deficiencies resulting fromfinancial constraints and low cost recovery. The design of the proposedproject draws upon these lessons.

6. GOI Water Resources and Irrigation Strategv. An internationalwater resources seminar held in November 1992 initiated serious deliberationswithin GOI on the institutional adjustments ard reforms that are essential forintegrated basin water resources management for the coming 25 years. Theseare directed to: (a) management and allocation of surface and groundwaterresources in a river basin context for multipuxpose use and conservation ofresources; (b) decentralization and deconcentration of wator allocationdecisions and basin operations; (c) treatment of water as a scarce resource;and (d) enhanciment of community and beneficiary participation in waterresources management. For the irrigation sub-sector, GOI has set outpriorities (Policy Statement of 1987 which has since underpinned Bank-supported irrigation operations) for: (a) sustained O&M of the existinginfrastructure together with appropriate cost recovery from beneficiaries;(b) turnover of less than 500 ha public systems to Water User Associations(WUAs); (c) development of new irrigation in the outer islands for povertyalleviation and mitigating regional imbalances.

7. Bank Strategv and Rationale for Bank Invo.vetment. The Bank is inbroad agreement with the GOI's objectives for water resources and irrigationdevelopment and has had extensive cross-sectoral experience in water projectsin Indonesia. Bank strategy supports GOI's efforts through a coordinatedlendirg program focussed on important and complemen.tary objectives. Thisproject would focus on efficient water resource utilization in selected Javabasins, improving the sustainability and productivity of the existingirrigation infrastructure, and turning over small irrigation schemes to WUAs.Complementary lending includes the following projects:

(a) The proposed Integrated Swamps Development Project (FY94) wouldimprove conditions on reclaimed swamp areas for povertyalleviation and environmental upgrading.

(b) The proposed Dam Safety Project (FY94) would provide support to anational Dam Safety Organization and perform remedial works onsome ailing dams.

(c) The Watershed Conservation Project (FY94) focuses on naturalresources management in critical watersheds.

The proposed project is fully consistent with the Bank's Country AssistanceStrategy discussed with the Board on April 12, 1994, which emphasizedinfrastructure, institutional reform, decentralization, strategic naturalresources management and sustainability. These elements are stronglyrepresented in the design of this project.

8. Proiect Obiectives. The project has six main objectives: (a) itwould support the institutional reforms and river basin focused operationswhich foster integrated water resources management in Java provinces; (b) itwould continue Bank support, started under earlier'projects, for maximizingcoverage of efficient operation and maintenance of larger irrigation schemes;(c) expand the Irrigation Service Fee program for cost recovery; (d) andprivatize less than 500 ha public schemes through turning them over to non-

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profit water user's associations; (a) it would complete technically andeconomically viable rehabilitation of ae yet unimproved public irrigationsystems larger than 500 ha; and (f) carry out remedial works on 11,300 ha ofthe Dumpil Irrigation System.

9. Proiect Comnonents. There are six major project components:

(a) River Basin Water Resources Management. The project would helpachieve GOI's policy and institutional reforms for watermanagement through: (i) preparing Basin Water Resources Plans inthree river basins; (ii) improving operational procedures,management techniques and support facilities to enhance real-timebasin water resources management in five river basins;(iii) establishing appropriate institutional arrangements/adjustment for allocation of water by provincial governments; and(iv) establishing procedures and guidelines for bulk water chargesand water supply, drainage, and flood control services.

(b) Hydrology. The project would strengthen Hydrological Units ofProvincial Water Resource Services in West, Central and East Javaand Special District of DI Yogyakarta through upgrading thehydrological network for operational purposes, and providinghardware and software for timely processing of the collectedhydrological data. Benefits would occur inside and beyond thebasins selected for Basin Water Resources Management.

(c) Turnover to Water Users-Associationse(WUAs). About 356,000 ha ofsmall (c500 ha) public irrigation systems would be turned over toprivate WUAs after Special Maintenance of their physicalstructure. The project would accelerate the ongoing program inorder to achieve turnover of about 60 percent of small publicirrigation systems by year 2000.

(d) Irrigation Development. Irrigation development would cover about230,000 ha through rehabilitation, remedial works, expansion andnew schemes. About 202,000 ha of medium-sized (generally 500 hato 3,000 ha) public irrigation systems would be rehabilitated.They need modest investments to ensure long-term, sustainedproduction.

(e) Efficient Operation and Maintenance (EOM). EOM is aimed atproviding planned services to users and maintaining the systemsinto the future. The project would add 218,000 ha of irrigatedland to EOM coverage from areas under irrigation development inthe project plus 42,000 ha of recently-rehabilitated SpecialProjects systems. By the end of the project, about 92 percent ofall public irrigation systems in Java are expected to be underEOM, contributing to sustainability.

(f) Irriaation Service Fees. Irrigation Service Fees support the GOIprogram of direct cost recovery for O&M from irrigationbeneficiaries on publicly managed schemes. The project wouldextend these fees to 100 percent of the public irrigation systemson Java by year 2000.

-4-

Minor project components would improve flood forecasting and water monitoringsystems, establish river structure maintenance procedures, introduce and testvetiver grass or similar hedgerow grasses in selected basins for erosioncontrol and promote public awareness of water pollution and conservationissues.

10. Proiect Pinancina and Implementation. Total project costs areestimated at US$304.0 million. The proposed loan of USS165.7 million wouldfinance 54 percent of total costs, or 59 percent of costs exclusive ofvehicles (US$2.9 m$ilion) and taxes. (US$21.0 million). GOI would provideUS$133.8 mUllion equivalent and Water User's Associations would provide US$4.5million equivalent as equity in the form of labor contributions. A breakdownof project costs and the financing plan are presented in Schedule A, and theamounts and methods of procurement are in Schedule B. A timetable for keyproject processing events is in Schedule D. A map is also attached. TheStaff Appraisal Report No. 12872-IND, dated May 25, i994, is being distributedseparately.

11. Imylementation. The Directerate General of Water ResourcesDevelopment (DGWRD) in the Ministry of Public Works would implement theproject except for the Irrigation Servica Fee component which would beimplemented at the local level with support from DGPUOD in the Ministry ofHome Affairs. DGWRD would be responsitle for all procurement, includingtechnical assistance, except for procurement under the Irrigation Service Feecomponent which would be handled by DGPUOD.

12. Proiest Sustainabilit,. The purpose of the Efficient Operationand Maintenance component is to fund needs-based O&M budgets and ensure thatfurther rehabilitation is not needed. This is a central project featurecomprising 20 percent of base costs and is reflected in loan conditions ongovernment financing. Government agreement not to use loan proceeds for EOCfunding and to introduce irrigation service fees on a Java-wide basisdemonstrates commitment to sustainability. Bringing systems up to the leveljustifying entry into EON is the objective of rehabilitation and upgrading onlarger schemes. Special maintenance in small service areas is also directedto sustainablity. Coavarsion of land out of agricultural production is onethreat to sustainability and sensitivity analysis shows that shorter benefitstreams severely drive down returns. Assurances were obtained at negotiationsthat land use planning would not anticipate conversion of r'a>bilitated areasfor at least 10 years.

13. Environmental Assessment. Negative environmental impacts areminimal. Most of the project is directed to existing curltivated and irrigatedareas. Preliminary environmental analysis eliminated 38,000 ha fromconsideration. Specific environmental issues have been raised in three out ofapproximately 220 schemes. These three projects have been placed on adeferred list requiring additional environmental analysis and economicjustification as a condition of disbursement. The project would promote morefrequent water quality sampling, place provincial environmental bureaus onprovincial water management committees, and introduce and test vetiver hedgerow technology for erosion and sedimentation control on a pilot basis.

14. Action Aereed. Agreement was reached with GOI at negotiations onthe following:

-5-

(a) Special maintenanee estimated-to cost in excess of the agreedindividual scheme review threshold, would be subject to additionaleconomic and design justification and approval;

(b) Final selection of schemes for rehabilitation and expansion wouldrequire: (i) confirmation of dependable irrigation wateravailability; (ii) an estimated ERR acceptable to the Bank;(iii) acceptance of farmers to participate in WUAs, and WUAspreparedness for rehabilitation and procedures establiohed forISP; (iv) Government confirmation that scheme sites would not beconverted to non-agricultural uses for a period of at least tenyears.

(c) Consultants would be employed by January 15, 1995, except for theirrigation Service Fee component which would be April 30, 1995;

(d) The project would be carried out according to Detailed Inter-Agency Action Plans and Annual Work Programs reviewed with theBank; and project activities would be subject to Financial andTechnical Audits;

(e) Basin Water Management Committees (BWMC) or similar committees andBasin Water Operations Units (BWOU) would be established in eachbasin selected for real-time water management not later thanNovember 1, 1994. Basin Water Resources Management (BWRM) wouldbe implemented in accordance with DGWRD's Integrated Water

- Resources Management Position Paper (December 1993), GOI'sStrategy Paper for Integrated Water Resources Management (May 16,1994) and the Detailed Inter-Agency Action Plan reviewed andagreed with the Bank.

(f) Resettlement would be avoided or minimized under the project. Ifresettlement ts unavoidable in some areas (which is poseible inconnection with rehabilitated or expanded irrigation schemes)before carrying out the works, the Government would: (i) preparea resettlement plan for affected individuals in accordance withpolicies, planning principles, institutional arrangements anddesign criteria agreed with the Bank; and (ii) design resettlementso as to improve the living standards of those resettled.Further, the resettlement plan would be submitted to the Bank forapproval and measures to ensure resettlement follows plansapproved by the Bank would be taken.

15. Conditions of Disbursement. (a) As a condition of loandisbursement against civil works expenditures (excluding survey, design andinvestigation) for rehabilitation of the three schemes placed on a deferredlist for envirommental reasons, Government would obtain prior approval by theBank of design, costs, benefits and environmental analysis; and (b) As acondition of disbursement against Dumpil remedial works expenditures, the Bankwould have to receive and approve (i) cost estimates and designs for theremedial works; and (ii) evidence of adequate water availability for theDumpil Irrigation scheme, based on actual measurements of Lusi river flows,before authorizing disbursements against Dumpil remedial works expenditures.

16. Prolect Benefits. The project would create the framework forintegrated water resources management to resolve competing demand issues and

-6-

improve real-time management. It would increase rice production on Java andprotect existing infrastructure from deterioration while relieving 001 ofresponsibility for a large number of small irrigation schemes. Over a millionfarm families would benefit. The estimated ERR for irrigation development andturnover is about 17 percent. These components account for about 62 percentof total project base cost, including the share of efficient oper"tion andmaintenance costs for these schemes.

17. Risks. Institutional, technical, and economic risks exist;environmental risks are minimal. The iJUAs are very important for theimplementation of EOM, collection of ISF, tuirnover of smaller irrigationschemes, and for improvement of water distribution and management at the farmlevel. The quality of WUA development and training, including social andcommunity participation mast be adequate to minimize risks. ISF collectioncould be difficult. The WUA emphasis on collection responsibility and havingM4A issue an advisory/guidelines on collection will bolster the performance ofISF collection. Success depends on improved delivery of services afterrehabilitation, channeling ISF back to irrigation schemes facilitated bydecrees to streamline this process, and reasonable fees geared to needs-basedbudgets, with exemptions for crop-failure and non-delivery of water. Thegovernment needs to maintain commitment to the integrated water resourcesmanagement process and institutions. Here favorable outcomes requireprovincial cooperation and beneficiary participati-n. Recent decrees andpolicy development demonstrate serious GOI commitment. Technical risks areminimal considering that the proposed technologies have been tested and provenelsewhere. A number of irrigaticn schemes proposed for rehabilitation willstill require feasibility studies and preparation of detailed designs prior toimplementation. The project can further minimize technical risks bys(a) careful screening and selection of the planned irrigation schemes; and(b) providing special attention to quality control, monitoring and evaluationof the technical performanee. Technical audits are also required. Economicviability largely depends on containing investment and production costs,achieving the expected benefits in a timely fashion, and rice prices.Preliminary economic analysis is quite favorable. Returns are fairly robustagainst adverse changes in production costs and rice prices, except for riceprices in some turnover models. Higher cost rehabilitation (overRp 1,000,000/ha) would be subjected to additional economic justification, as.would special maintenance above the review threshold. Implementation phasingis designed to minimize disruption of farming and accelerate the beginning ofbenefit streams.

18. Recommendation. I am satisfied that the proposed loan wouldcomply with the Articles of Agreement of the Bank and recommend that theExecutive Directors approve the proposed loan.

Lewis T. PrestonPresident

Attachments

Washington, D.C.May 25, 1994

_7 Schedule A

-INDONESTA

JAVA IRRIGATION IMPROVEMENT AnI WATER RESOUPRES MANAGEMENT PROJECT

Estimated Project Costs and Financing_Plan

Estimated Costs: Local Foreign Total- US$ M-ilion -

Basin Water Resources Management 19.4 10.9 30.3Irrigation Development and Turnover 93.9 52.5 146.4Efficient O&M 38.8 7.8 46.6Irrigation Service Fees 4.6 1.4 6.0Project Administration 5.2 1.2 6.4

rTotal Baseline Cost 161.9 73.8 235.7Physical Contingencies 15.8 8.4 24.2Price Contingencies 30.6 13.5 44.!

Total Project Cost la 208.3 95.7 304.0

La_ Tncluding taxes and duties of about US$21.0 equivalent.

Financing Plan: Local Foreign Total Percentage----- US$ million -

IBRD 70.0 95.7 165.7 54/sGovernment 133.8 0.0 133.8 44Water Users Associations 4.5 0.0 4.5 2

Total 208.3 95.7 304.0 100

la 59% excluding taxes, duties, and t-he vehicles which GQI wishes to finance.

-8- Schedule BPage 1 of 3

INDONESIA

JAVA IRRIGATION IMPROVEMENT AND WATER RESOURCES MANAGEMENT PROJECT

A. Proeurement Plan(US$ million)

International Local NotCompetitive Competitive Bank

Item Bidding Bidding OtherLa Financed Total

Civil Works 3.5 143.5 18.6 165.6(2.5) (99.0) (15.4) (116.9)

EOM 49.8 49.8

Vehicles 2.9 2.9

Equipment and Material 7.5 0.9 0.3Lb 8.7(7.5) (0.7) (8.2)

Incremental OperationalExpenditure:

- Basin Water 13.4 13.4Resources Management (10.7) (10.7)

- Training for Hydrology 4.5 4.5Turrover, EON & ISF (3.6) (3.6)

Technical Assistancest,- Policy Advice and Studies- 3.4 3.4

(2.7) (2.7)- Implementation Support Id 18.6 18.6

(16.8) (16.8)- Institutional Support 7.5 7.5

(6.0) (6.0)

Subtotal Consulting Scrvices 29.5 29.5(25.5) (25.5)

Administration 8.6 8.6

Subtotal Project 11.0 144.4 66.0 61. 283.0(10.0) (99.7) (55.2) (164.9)

Taxes 0.7 10.8 4.9 4.6 21.0

Total 11.7 155.2 70.9 66.2 304.0

Note: Figures in parentheses show Bank financing. Data includescontingencies. Taxes are shown separately.

_ 9 _ Schedule BPage 2 of 3

la Civil Works and Incremental Operational Expenditure in this column wouldprimarily be on a force account basis. Technical Assistance (except fordirect anpointment awards) would be contracted on the basis of invitingproposals from qualified and experienced firms.

/-b Equipment for traiaing and administration of ISF./c The Bank would finance 100% of design enginoering services (US$9.6 million)

and P0Z of centrally-managed implemen^.ation support (US$7.2 million) ,.nd80X all other technical Assistance.

L Implementation support includes US$9.6 million of design engineeringservices, with contingencies.

B. Disbursement Plan

Amount DisbursementCategory (US$ millit'n) Rate

1. Civil Works 60%(a) Turnover Special Maintenance 17.3(b) Rehabilitation, Upgrading,

Expansion and New Schemes 79.3(c) Deferred Rehabilitation Schemes- 4.2(d) Dumpil Remedial Scheme 4.9

2. Equipment and Material la lb 8.2 100%; 1002; 65%

3. Incremental Operating Expendituresard Training(a) Basin Water Resources Management 10.7 80%(b) Training for Hydrology, Turnover,

EOM and ISP 3.6 80%

4. Consultants Services 15.9 &0%

5 Engineering Services for PWRS 9.6 100%

6. Unallocated 12.0

Total 165.7

La Excluding the vehicles which GOI wishes to finance.lb 100 of foreign expenditures for directly imported equipment, 100% of local

expenditures (ex-factory prices) for locally manufactured equipment, and65 of locally procured other items.

- 10 - Schedule BPage 3 of 3

C. Estimated Disbursemente

IBRD Fiscal Year: PY95 FY96 FY97 FY98 FY99 FYQO------- - US$ million ------------------

Annual 5.4 34.6 39.5 32X3 28.8 24.1Cumulative 5.4 40.0 79.5 112.8 141.6 165.7

- 11 - Schedul,e C

INDONESIA

JAVA IRRIGATION IMPROVEMENT AND WATER RESOURCES MANAGEMENT PROJECT

Timetable of Key Proiect Processina Events

(a) Time taken to prepares 2 years

(b) Prepared by: Government and- consultants with Bankassistance

(c) First IBRD mission: July 1992

(d) Appraisal mission departure: October 1993

(e) -Negotiations: April 27-29, 1994

(f) Planned date of effectiveness: September 1994

(g) List of relevant PCRs/PPARs: PPAR: Irrigation m (Loan 2118-IND)and Irrigation XVII, (Loan 2119),Report No. 10654, May 1992.PCR: Irrigation Subsector (Loan2880-IND), Report No. 11416, December1992; West Tarum Canal Improvement(Loan 2560-IND), Report No. 12818,March 1994.

This report is based on the findings of an appraisal mission comprisingMessrs. J. Hitchings (Task Manager); A. Raza, H. Frederiksen, B. Kramer,Moh Hasan and S. Kumar, (Bank) which visited Indonesia in October 1993 audanalysis by G. Vayre (consultant). The Peer Reviewers of the project wereMessrs. A. Bruestle (Water Resources Management); D. Gunaratnam (technicalaspects); and R. Crooks (environmental aspects). Mrs. Marianne Haug, Director(EA3DR) and Antony P. Cole, Division Chief (EA3AG) have endorsed the project.

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Schedule DPage 1 of 4

STATUS OF BANK GROUP OPERATIONS IN INDONESIA

A. STATEMENT OF BANK LOANS AND IDA CREDITS /a(as of March 31, 1994)

Amount (US$ million}Loan/ Bank IDACredit Fiscal Original principal Undie-

Number Year (less cancelletion _ bursed

One-hundred-nineteen loans and 9,906.39 901.60fourty-eight credits fully disbursed

Of which SECALS, SALs and Program Loans /b

2780 1987 Trade Policy Adjustment 300.002937 1988 Second Trade Policy Adjustment 300.003080 1989 Private Sector Development 350.003267 1991 Second Private Sector Development 250.00

Subtotal: 1,200.00

2431 1 '84 Second Swamp Reclamation 64.00 3.242543 '.985 Kedung Ombo Multipurpose Dam 156.00 2.63

and Irrigation2547 1985 Second University Development 147.00 2.482632 1986 Second East Java Water Supply 43.19 1.472638 1986 Nusa Tenggara Agriculture Support 33.00 6.512690 1986 Gas Distribution 34.00 8.552705 1986 Manpower Development and Training 58.10 4.762773 1987 Fisheries Support Services 20.00 5.942881 1988 Second Rural Roads Development 190.00 18.432930 1988 Forestry Institutions & Conservation 30.00 9.062932 1988 Jabotabek Urban Development 150.00 41.222940 1988 Accountancy Development 113.00 29.402944 1988 Higher Education Development 140.30 7.082992 1989 Tree Crops Hurman Resource Development 18.40 4.16

is The status of the projects listed in Part A Is described in a separatereport on all Bank/lDA-financed projects in execution, which Is updatedtwice yearly and circulated to the Executive Directors on April 30 andOctober 31.

/b Approved during or after FY80.

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Schedule -DPage 2 of 4

Amount 4US$ million)Loan/ Bank IDACredit fiscal Origina' Principal Undie*

Number Year (toss cancellation) bureed

3000 1989 Tree Crops Processing 102.70 55.283031 1989 Agriculture Research Management 35.30 7.383040 1989 Industrial Restructuring 283.60 60.423041 1989 Small & Medium Industrial Enterprise 100.00 8.853042 1989 Third Health 43.60 14.403097 1989 Power Sector Efficiency 337.00 -106.253098 1989 Paiton Thermal Power 354.00 101.953112 1990 Public Works Institutional 36.10 8.73

Development & Training3133 1990 Highway Sector 350.00 64.113134 1990 Professional Human Resource Development 117.50 18.843158 1990 Second Secondary Education 154.20 91.183180 1990 Rural Electrification 329.00 134.193182 1990 Third Telecommunications 350.00 159.243209 1990 Gas Utilization 86.00 72.803219 1990 Second Jabotabek Urban Development 190.00 122.463243 1990 Second Forestry Institution 20.00 14.04

and Conservation3246 1991 Third Jabotabek Urban Development 61.00 46.473249 1991 Second BRI/KUPEDES Small Credit 125.00 23.953282 1t91 Fertilizer Restructuring 221.70 58.443298 1991 Fifth Population 104.00 57.323302 1991 Provincial Irrigated Agriculture 125.00 97.58

Development3304 1991 East Java/Bali Urban Development 180.30 117.303305 1991 Yogyakarta Upland Area Development 15.50 9.843311 1991 Second Higher Education 150.00 74.323340 1991 Sulawesi-Irian Jaya Urban Development 100.00 69.443349 1991 Power Transmission 275.00 219.473385 1991 Technical Assistance Project for 30.00 25.20

Public and Private Provisionof tnfrastructure

3392 1992 Second Irrigation Subsector 225.00 82.193402 1992 Agricultural Financing 106.10 -80.153431 1992 Third Non-Formal Education 69.50 53.273448 1992 Primary Education Quality Improvement 37.00 32.713454 1992 BAPEDAL Development 12.00 10.843464 1992 Treecrops Smallholder 87.60 73.593482 1992 Fourth Telecommunications 375.00 - 349.12

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Schedule 0Page 3 of 4

Amount (US$ million)Loan/ Bank -tACredit Fiscal Original Principal Undis-

Number Year (less cancellation) bursed

3490 1992 Third Kabupaten Roads 215.00 128.703496 .992 Primary School Teacher Development 36.60 31.633501 1992 Suralava Thermal Power 423.60 417.543526 1993 Financial Sector Development 307.00 198.073550 1993 Third Community Health & Nutrition 93.50 86.883579 1993 E. Indonesia Kabupaten Roads 155.00 134.193586 1993 Integrated Pest Management 32.00 30.193588 1993 Groundwater Development 54.00 54.003589 1993 Flores Earthquake Reconstruction 42.10 34.993602 1993 Cirata Hydroelectric Phase IJ 104.00 104.003629 1993 Water Supply & Sanitation for 80.00 78.00

Low Income Communities3658 1994 National Watershed Management and 56.50 56.50

Conservation la

Total 17,891.28 901.60of which has been repaid 3,932.32 109.36

Total now held by Bank and IDA 13,958.96 792.24Amount sold 88.08

of which repaid 76.47

Total undisbursed 4,020.94

/a Not effective as of March 31, 1994.

- 15 - Schedule DPage 4 of 4

B. STATEMENT OF IFC INVESTMENTS(as of March 31, 1994)

(US$ million)Untdabursed

Original Total indudingFiscal Commitment Held participants'Year Company Type of business Loan Equity Totar by IFC gortion1971t74 P.T. Peimatexco Textiles & Fibers 4.0 0.8 4.81971 P.T. Unitex Textiles & Fibers 2.5 0.8 3.3 0.31971/7374/76/84 P.T. Semen Cibinong Cement 46.0 5.8 51.8 -

1971 P.T. Kabel Indonesia Cables 2.8 0.4 3.2 -

197277 P.T. Daralon Textile Textiles & Fibers 5.8 1.5 7.3 -

1973/89 P.T. Jakarta Int'l Hotel Tourism 9.8 2.7 12.51974 P.T. PDFCI Development Finance - 0.5 O.S 0.41974 P.T. Monsanto Electronics 0.9 - 0.91974/77 P.T. Kamaltex Textiles 3.8 0.8 4.51980 P.T. Papan Sejahtera Housing Finance 4.0 1.2 5.2 1.21980 P.T. Supreme Indo-Americe Dinnerware 11.1 0.9 12.0 -

1980187 P.T. Semen Andalas Cement '8.6 5.0 53.6 20.91982/85 P.T. Saseku Gelore Leasing 6.5 0.4 6.9 1.81988 P.T. Bali Holiday Tourism 11.3 - 11.3 1.51988 P.T. Asuransi Jiwe Insurance - 0.3 0.3 0.31989 P.T. Monterado Mining 8.0 2.0 10.0 -

1990/91 P.T. Astra /a General Mfg. 22.4 12.5 34.9 25.1 2.11990 Federal Motor /a Engine Mfg. 12.5 - 12.51990 Nomura Fund Money & Capital Mkt - 3.0 3.0 1.5 -

1990 Bank Umum Nasional Development Finance 10.0 - 10.0 10.0 10.01990 -Bank Niega Development Finance 7.5 - 7.5 3.2 3.21990 Raja/Pendopo Oil Exploration - 3.6 3.6 -

1990 P.T. Agro Muko Plantation 10.5 2.2 12.7 12.71990 NMB-P.T. Kabil Indus. Estate 2.8 - 2.8 0.4I990/91 P.T. Indo Rana-Syfth. Textiles 27.0 6.2 33.2 30.91991 P.T. Argo Pantes Textiles 83.0 13.0 96.0 39.31991 P.T. Asahi Chemicals Chemicals 4.0 1.8 5.e 4.8 0.41991 P.T. Rimba Partikel Wood Products 20.0 0.6 20.6 11.71991 VIC Indonesia Money& Capital Mkt - 1.5 1.5 15 0.61992 P.T. Bakrie Kasel Chemicals 125.0 9.6 134.6 39.61992 P.T. Lantai Keramik Mas Cerarnic rTile 15.4 1.7 17.1 8.1 0.11992 P.T. Swedharma Kerry Satya Tourism 86.0 - 86.0 35.0 19.01992 P.T. Mitracorp General Mfg. - 16.0 16.0 15.91992 P.T. S, Pacific Viscose Textiles 45.0 - 45.0 20.01993 P.T. BBL Dharmala . Money & Capital Mkt 5.0 - 5.0 4.7 -1993 P.T. Nusantara Fruits Agribusiness 16 0 1 16.0 12.4 6.21993 P.T. Samudera Shipping 15.0 5.0 20.0 17.0 3.61994 P.T. Saripuri Tourism 32.0 3.6 35.6 11.6 35.61994 P.T. PAMA Indonesia Money & Capital Mkt - 7.5 7.5 7.5 5.7

Total 704.1 110.8 814.9 339.1 86.5

Projects approved but not yet signed1992 P.T. RBD Heiler Money & Capital Mkt - 0.6 0.6 0.6 0.61992 P.T. Tjpwi Kimia Paper 120.0 15.0 135.0 45.0 135.01993 P.T. Indo Rams-Synthetics Textile 10.0 10.0 10.0 10.01994 P.T. Fdamendo Chernicals 46.8 - 46.8 18.3 46.8

Total 176.8 15.8 192.4 73.9 192.4

/a Loan portion subsequently cancelled.

IBRD 236w'110'13' SOUNO

-" ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~MALASIA

t 1 ~~~t t4 DO < N C 5, i A |

Cidurian bk'. Lrk, Bashsi JAKARtA A. .A

KpAE s _i ^<-- T;b,,alC, Q - ~ \ 1 ><°~\<,,,,@,, ; ,s Sampean Blasin

IN DO N E S I A,wa-

IRRIGATION IMPROVEMENT P f. t Y, WD A!A TA

AND .. e . -WATER RESOURCES MANAGEMENT

PROJECTLocation of Seleded River Basins for Planning

and Real-Time Water Management

Planning and ReoI-Time Major Highways o 20 40 60 W t

Water Management - Railroods Or ___ 40 ___ MIIE

* 3 Fplanning Cities and Towns'3 PraFvince Capitxals

[37j] Real-Time Water Rivers . ce

' aamn- -- Province Boundaries &.

Intemrnlionol Boundaries 1To'1W1

MAIRCH 199