World Bank Document · Pencataken Sawah - Land clearing!sawah formation Pengamat - Irrigation inspector, head of subsection (cabang seksi) Sawah - Lowland rice fields with bunds to

Document of

The World Bank

FOR OFFICIAL USE ONLY

i, tE, 0 v

Report No. 4639-IND

INDONESIA

STAFF APPRAISAL REPORT

SECOND PROVINCIAL IRRIGATION DEVELOPMENT PR(

December 16, 1983

Projects Department

East Asia and Pacific Regional Office

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

US$1.00 = Rupiahs (Rp) 970

Rp 100 = US$0.103

Rp 1 million = US$1,031

WEIGHTS AN) MEASURES - METRIC SYSTEM

1 millimeter (mm) = 0.039 inches1 meter (m) 39.37 inches1 kilometer (km) = 0.62 miles1 square kilometer (sq kn) = 0.386 square miles1 hectare (ha) 2.47 acresI cubic meter (cu m) 35.31 cubic feetI million cubic mEtters (MCM) = 811 acre feetI liter (1) = 0.264 gallons (USA)1 liter/second (l's) = 0.035 cubic feet per secondI kilogram (kg) = 2.2 pounds1 metric ton (ton) = 2,205 pounds

INDONESIAN FISCAL YEAR

April 1 - March 31

GLOSSARY

Diklat - Regional Training CenterDinas - Service of the Provincial GovernmentDiperta - Provincial Agricultural ServiceJuru - Irrigation Overseer (responsible for 700-1,000 ha of

irrigated sawah)Kabupaten - Administrative district; headed by BupatiKanwil - Kantor Wilayah - regional offices

Palawija - Secondary foodcrops (maize, soybeans, cassava, groundnutsweet potatoes, etc.) grown mainly in dry season

Pemda - Local Government in KabupatenPencataken Sawah - Land clearing!sawah formationPengamat - Irrigation inspector, head of subsection (cabang seksi)Sawah - Lowland rice fields with bunds to collect irrigation or

rain water and maintain controlled inundationSeksi - Irrigation section (20,000-60,000 ha). A subsection

(cabang seksi) serves about 5,000 haWilayah - Regional irrigation office which oversees several seksis

FOR OFFICIAL USE ONLY

ABBREVIATIONS

ADB - Asian Development BankAPBN - Central Government BudgetBI - Bank IndonesiaBIE - Bachelor of Engineering - Diploma HolderBIMAS - Bimbingan Massal Swa Sembada Bahan Makanan - Mass Guidance

for Self-Sufficiency in Foodstuffs - a farm input-creditpackage

Binlak II - Subdirectorate for Small-, Medium-Scale IrrigationConstruction

BRI - Bank Rakyat Indonesia - People's Bank of IndonesiaDAAD - Directorate of Agricultural Area DevelopmentDGA - Directorate General of AgrariaDGFCA - Directorate General of Food Crops AgricultureDGWRD - Directorate General of Water Resources DevelopmentDIP - Project Implementation BudgetDJPKN - Directorate General of State Financial ControlDOI - Directorate of IrrigationDPMA - Directorate of Hydraulic ResearchDPP - Directorate of Planning and Programming (in DGWRD)DPU - Departemen Pekerjaan Ummu - Ministry of Public Works

EJIS - East Java Irrigation ServiceGOI - Government of IndonesiaHYV - High Yield Varieties of RiceINPRES - Revenue sharing grant programs from GOI to district and

village authoritiesIPEDA - Land TaxIr - Master of EngineeringKfW - Kreditanstalt fur WiederaufbauKIK - Kredit Investasi Kredit - medium-term farmer creditMHA - Ministry of Home AffairsMOA - Ministry of AgricultureMOF - Ministry of ForestryO&M - Operation and MaintenanceP3A - Water Users AssociationPPL - Village level extension workersPPM - Agricultural extension worker, mid levelPPS - Agricultural extension worker, subject matter specialistPRIS - Provincial Irrigation ServiceSDAE - Subdirectorate of Area ExpansionSDPD - Subdirectorate of Planning and DesignSDWM - Subdirectorate of Water ManagementSEKNEG - Cabinet SecretariatSIAP - Budget carryovers

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

INDONESIA

SECOND PROVINCIAL IRRIGATION DEVELOPMENT PROJECT

Loan and Project Summary

Borrower: Republic of Indonesia

Amount: $89 million equivalent (including capitalized front-endfee)

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

ProjectDescription: The main objective of the project is to strengthen the

irrigation services of eight selected Other Island pro-vinces, particularly in project preparation, implementa-tion, and operation and maintenance capabilities.The proposed project is the second to focus on building upthe capacity of the Provincial Irrigation Services (PRIS)and project actions include institutional strengthening ofeight PRIS; strengthening of the Ministry of Agriculture'sservices for land development and water management exten-sion; a three-year time slice of the Government ofIndonesia's (GOI's) Fourth National Five-Year DevelopmentPlan (Repelita IV) for design and construction program inthe eight provinces for small-scale irrigation schemes,serving 5,000 ha of design and 34,000 ha of irrigation worksat full development; a three-year time slice of the designand construction program for medium-scale irrigation schemesto serve 45,000 ha for design and 26,200 ha of irrigationworks at full development; and consulting services fortraining. More efficient project selection and greaterinvolvement of farmers and local authorities in the projectcycle will lead to a greater impact from irrigation andsteadily increasing farm output and incomes. Risksassociated with the project include failure to recruitadequate staff, delays in land development, and inadequateoperation and maintenance standards. These risks areaddressed by the project.

Estimated Cost:/aLocal Foreign Total

($ million) - -

Institutional Strengthening 3.6 4.5 8.1

Irrigatiorn ConstructionSmall-sc:ale 31.9 14.7 46.6Medium-scale 33.2 16.6 49.8

Consultant. Services 1.5 3.0 4.5

BaSEL Cost 70.2 38.8 109.0

Physical c:ontingencies 6.8 3.9 10.7Price cont:ingencies 22.2 8.3 30.5

Total Project Cost 99.2 51.0 150.2

Front-end fee on Bank loan -- 0.2 0.2

Total Financing Required 99.2' /a 51.2 150.4

Financing Plan:

Bank 38.3 50.7 89.0Government of Indonesia 60.9 0.5/b 61.4

Total 99.2 51.2 150.4

Estimated Disbursements: Bank FY 1984 1985 1986 1987 1988------------- ($ million) -------------

Annual 0.6 20.1 29.6 29.6 9.1Cumulative 0.6 20.7 50.3 79.9 89.0

Rate of Return: Over 30% on typical small-scale scheme construction and 16%.on typical medium-scale scheme construction, which togetherconstitute about 90% of total project costs. It is notpossible to quanltify economic rates of return (ERRs) on theother components of the project which concern institutionalstrengthening.

Staff Appraisal Report: No. 4639--IND, dated December 16, 1983.

/a Costs include taxes on civil works contracts of $2.0 million.

/b Foreign exchange content cf vehicles under reserve procurement.

INDONESIA: SECOND PROVINCIAL IRRIGATION DEVELOPMENT PROJECT

STAFF APPRAISAL REPORT

Table of Contents

Page No.

1. BACKGROUND

General ....................................................... 1The Agricultural and Rural Sector ............................. 1The Irrigation Sector ......................................... 2Role of the Bank .............................................. 3

2. PROJECT BACKGROUND

Focus ......................................................... 6Selection of Provinces ........................................ 6The Selected Provinces ........................................ 7The Kecil Program ............................................. 8The Sedang Program ............................................ 10The Irrigation Services in the Selected Provinces ............. 11

3. THE PROJECT

Objectives .................................................... 14Project Description ................... 15Institutional Strengthening of Eight PRIS and the DOI

Binlak II . . . .... 16

Strengthening of DAAD . . . 19Kecil Irrigation Design and Construction ...................... 21Sedang Irrigation Design and Construction ..................... 22Water Supplies and Demand .. 23Consulting Services . .. ................ 23Status of Project Preparation . . . 24Cost Estimates . ............ 25Financing ..... 27

Procurement ................................................... 27Review of Procurement . . . 28Disbursements ................................................. 28Accounts and Audits . . . 30Environmental Protection . . . 30

This report is based on the findings of an appraisal mission composed ofMessrs. D.J. Gunaratnam, A. Alamin, Ms. D. Thompson (Bank), and R. Schatz,W. David, and J. McKinnon (Consultants) which visited Indonesia in February,1983.

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Page No.

4. ORGANIZATION AND MANAGEMENT

Kecil and Sedang Construction Programs .......... ....... 31National Level Organization and Management ...... ... . ... 32Provincial Level Organization and Management .... ....... 33Land Development and Institutional Strengthening of DAAD 33Coordination of Irrigation and Land Development A.ctivities 33Monitoring and Evaluation ...... 34

5. BENEFITS, ECONOMIC JUSTIFICATION AND RISKS

PRIS and DAAD Institutional Development . .34Assumptions Used in Analyzing Irrigation Schemes . .35Economic Analysis of a Typical Kecil Scheme . .35Economic Analysis of Sedang Schemes . .38Farm Incomes and Cost Recovery .. 40Risks .............................-------------------.----- 41

6. AGREEMENTS AND RECOMMENDATION

Agreements Reached During Negotiati atnss. 43Condition of Loan Effectiveness .. 45Recommendation ......... .... 45

LIST OF TABLES IN MAIN REPORT

2.1 Potential Irrigation Areas . ......................... . . . . 72.2 Total Irrigation Areas.. 72.3 Irrigation Systems in Project Provinces. . . 82.4 Land Use in Kecil Schemes. . . 92.5 Kecil Schemes Constructed. . . 92.6 Sedang Schemes Constructed in Repelita II & III. . 112.7 Budget Allocations for Main System O&M . . .122.8 Irrigation Areas Constructed in Repelita III . . .132.9 Budgets, Expenditures, and Carryovers (SIAPs) for Kecil,

Sedang, and Tertiary Programs ... 14

3.1 PRIS Staff Increases .173.2 Binlak II Staff Increases .163.3 Supply and Demand for Irs and BIEs .183.4 Training .203.5 Kecil Project Areas .223.6 Sedang Schemes .233.7 Consultant Services In]?uts for Training .253.8 Project Cost Summary .26

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Page No.

3.9 Financing Plan .............................................. 273.10 Procurement .. ................... 29

5.1 Agricultural Development and Cropping Patterns: RepresentativeKecil Scheme ............-.-------........................ 36

5.2 Agricultural Development and Cropping Patterns: RepresesntativeSedang Scheme (Mentawa) .........................---.--... 40

5.3 Net Farm Incomes .. 41

ANNEXES

1. Summary Cost Estimate, Proposed Allocation of LoanProceeds by Components, Estimate Schedule ofDisbursements, Consulting Services Cost Breakdown,Institutional Strengthening of PRIS and DOI, Supportfor Agricultural Development for the Eight Provinces,Kecil: Construction Costs, Sedang SchemesCost Phasing, Land Development for Kecil, LandClearing and Sawah Formation for Sedang, Vehiclesand Equipment, Equipmenmt for each PRIS, Training,Consultants, Equipment/Facilities and Vehicles for LandClearing, Summary of Equipment/Facilities in support ofLand Clearing, Equipment/Facilities/Vehicles for WaterManagement

2. Price Structures for Agricultural Output, EconomicConversion Factor, Total Cost and Distribution of atypical Kecil Scheme, Land Use and Benefits Summary,Kecil: Present Crop Budgets, typical KecilScheme - Economic Costs and Benefits, Crop BudgetMentawa, Cost Estimates for Mentawa, SedangSchemes Cost Phasing, Mentawa Economic Costs, Benefits,Farm Income Analysis: Kecil, Sedang,Cost and Rent Recovery - Typical Kecil; Mentawa.

3. Selection Criteria, Specification, Guidelines andStandards, and Training Materials.

4. Project File Reference

5. Statement of Expenditure

6. Staffing Increases by Province, Staffing of Subdirectorate ofBINLAK II, Staffing Requirements, Seksi Staff Increase,Manpower for Irrigation Design, Manpower for ConstructionSupervision

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7. Present Provincial Irrigation Section Offices ancd StaffRepelita III Irrigation Expenditures by Major Subprogram,Physical Progress of Irrigation Program Repelita I1I,PRIS Expenditures, Irrigation in Repelita III, andProposed Program for Repelita IV, Registered IrrigationContractors by Capability, Irrigation ContractsProcessed in 1982/83

CHARTS

25072 Implementation Activities and Responsible Agencies for Kecil Projects25073 Implementation Activities and Responsible Agencies for Sedang25075 Agencies Involved with Irrigation25076 PRIS Organization25079 Organization and Management for Land Development25080 DOI Organization25081 Phasing of Activities for Irrigation and Land Development25082 DGWRD Organization25230 Directorate General Food Crops25231 Implementation Schedule

Map No. 17295R

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1. BACKGROUND

General

1.01 The Government of Indonesia (GOI) has requested Bank assistance fora second provincial irrigation development project /1 to (a) strengthen theprovincial irrigation services (PRIS) which serve eight Other Island provinces(in Sumatera: Riau, Bengkulu, South Sumatera and West Sumatera; and inSulawesi: North, South, Central and Southeast); and (b) finance a three year"time-slice" of the PRIS design and construction programs for small-scale(kecil) and medium-scale (sedang) irrigation schemes./2 The project includesdesigns for about 5,000 ha of kecil systems and construction of 34,000 ha ofkecil systems in these eight provinces; and nine sedang schemes of 45,000 hain the eight provinces and construction of an additional six schemes (26,200ha) in Bengkulu, West Sumatera, and Central and South Sulawesi. The majorproject objectives are (a) improve the capacity and efficiency of the eightPRIS to handle small and medium scale irrigation, thus reducing demands on theDirectorate General of Water Resources Development (DGWRD) which will focus onmajor irrigation works and multipurpose water use development; and (b) tostrengthen the Directorate of Agricultural Area Expansion (DAAD) and the cor-responding Departments of Agriculture in the eight provinces. DAAD isresponsible for land development for irrigation and water use extensionservices.

The Agricultural and Rural Sector

1.02 The Government's major objectives for the agricultural and ruralsector are to: (a) create productive employment to raise incomes of the ruralpoor; (b) increase domestic food supply, especially rice, to keep pace withrising demand; (c) expand agricultural exports, particularly of smallholdertree crops; and (d) ensure productive, sustainable use of Indonesia's land,water, and natural resources.

1.03 Food crop production forms 60% of agricultural GDP and 18% of totalGDP. Rice is the most important food crop. Between 1968 and 1981, riceproduction grew substantially in response to government interventions,including expansion of the irrigation network, major changes in rice growingtechnology, and price incentives. Production gains of other major food crops,while not so impressive as those for rice, have exceeded population growth,although some crops, for example corn, are encountering market constraints.

1.04 GOI food crop production and investment policies, INPRES programs,and the strong linkages and multiplier effects between agricultural incomesand other rural industries, have had a substantial impact on living standardsin rural areas. These factors have also resulted in some reduction in ruralpoverty, even though this remains a major problem. Increases in income have

/1 The first (East Java Province) is supported by Loan 2119-IND.

/2 Kecil schemes (previously called Sederhana schemes), have an average area

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not been uniform especially for dry-land farmers. Inadequate infrastructurealso contributes to slow growth in food crop output and needs to be addressedthrough further investments such as rural roads.

1.05 The Bank, in cooperation with GOI, has undertaken a series of sectorstudies related to food crop production: (a) Irrigation Program Review,October 1978, Report 2027a-IND; (b) Review of Support Services for Food CropProduction, December 1978, Report 2060a-IND; (c) Supply Prospects for MajorFood Crops, March 1979, Report 2374-IND; and (d) Policy Options and Strategiesfor Major Food Crops, April .1983, Report 3686b-IND. In June 1982, a Bankmission reviewed the irrigation work program and budget for the next five-yeardevelopment plan (Repelita IV-GOI FY 1984/85 to FY 1988/89)./3

The Irrigation Sector

1.06 Irrigation and Rice Production. Rice is the dominant irrigated cropand production has shown remarkable progress over the last decade. Paddyproduction has grown from 19 million tons in 1970 to about 33 million tons in1982. This is reflected both in increased per capita rice consumption andreduced dependence on imports. Estimated rice consumption per capita rosefrom 92 kg in 1967 to 130 kg in 1981. Rice imports in 1981 and 1982 wereabout 0.6 million tons, about: a quarter of 1977 and 1980 levels. Neverthe-less, demand is projected to grow; faster than production, and supply deficitsof the order of 1-2 million ltons are foreseen by the 19'30s unless additionalirrigation investments of somTe $300 million per year are made in GOITsRepelita IV.

1.07 Almost all rice production gains since 1968 have resulted fromimprovements in irrigated and wetland rice farming. It is difficult to quan-tify the contributions made by irrigation expansion and improvement, modernvarieties, and fertilizers since they are all interdependent. Nonetheless, itis estimated that about 16% of production increases between 1972 and 1981 areassociated solely with expansion and improvements in irrigation; about 9% toimproved rice varieties and fertillizer use while some 75% is due to jointinteraction of these factors.

1.08 Improved rice varieties and fertilizer use are lilcely to play alesser role in increasing Indonesia's future rice production. The use of HYVsis already high (about 80% of the irrigated and wetland crop) and is unlikelyto expand beyond 90% in 1990. Several traditional varieties are preferred fortaste and ceremonial reasons, and are better adapted to difiEicult growingconditions such as saline, f]ooded or water-short areas. Fertilizer use isalso high, particularly on Java where about 135 kg nitrogen and 50 kg phos-phate per hectare are currently applied. There is evidence that nitrogenapplications above this would. be wasted and cause crop losses due to lodgingand greater insect damage. With such already high fertilizer and HYV use,future yield increases will cepend primarily on improving the quality ofirrigation and water management.

/3 Irrigation Sector Review: An Issues Paper, October 1982.

1.09 Investment Needs. To satisfy projected demand in 1990, GOI planssufficient 4irrigation investment in Repelita IV to provide for additionalproduction of about 1.2 million tons of paddy. In addition, investments areneeded to reclaim tidal swamp areas for transmigration areas; to developmunicipal water supplies and hydropower; and for flood control. Investments,in current dollars, during Repelita IV are expected to be about $5.4 billion,including $1.6 billion foreign exchange costs, with annual GOI budgets(DIPs) /4 of about $750 million. GOI expects to borrow about $340 millionannually for the irrigation sector, with disbursements from both new loans andalready committed loans of about $140 million per year.

Role of the Bank

1.10 Major Objectives. Since 1968, the Bank has provided $864 millionfor irrigation in Indonesia. The early Bank supported projects were designedto quickly increase rice output by rehabilitating and upgrading major systems,and constructing drainage and flood protection works. The Bank's inputs thenshifted to installing tertiary networks in the major rehabilitated or upgradedsystems; establishing water user associations; and training officials andfarmers in improved irrigation practices. These efforts were accompanied bycomplementary projects to expand and improve agricultural extension services,and research programs. More recent projects include measures to strengtheninstitutional capacity, especially in planning, programming, budgeting(Irrigation XV, Cr. 995-IND); management information systems (Irrigation XVII,Ln. 2119-IND). Such Bank support is building up the project appraisal andevaluation capacity of DGWRD's Directorate of Planning and Programming(DPP). DPP appraised the sedang schemes to be constructed in this project,and will be responsible for appraising the yearly packages of kecil schemes(para. 4.02). DPP is already responsible for appraising subprojects under theADB-assisted Bali Irrigation Sector Loan. Other DPP activities are projectmonitoring and evaluation systems, starting in East Java (Ln. 2119-IND), andproject completion reports for Bank-assisted projects (starting withIrrigation V, Cr. 514-IND).

1.11 Present Strategy. The Bank has developed a close dialogue with GOIon the Indonesian irrigation program through its support for the 17 projectsassisted so far, and its sector work program (para. 1.05). GOI and the Bankagree on the need now to strengthen the provincial irrigation and agriculturalservices so as to enhance their ability to construct, operate and maintainirrigation systems, which is the focus of this project. Technical assistanceprovided with Bank support has successfully trained many local consultants andGOI staff, but large and complex irrigation works, especially those presentingdifficult economic choices, still require Bank assistance, especially if co-financing packages are to be sought by GOI. During Repelita IV, Bank assist-ance in the irrigation sector will focus on institution building; forwardplanning and programming and selection of priority investments; strengtheningprovincial irrigation services; and major or technically complex projects.

/4 These budgets do not include foreign borrowing.

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1.12 Other major priorit:ies for Bank inputs into the irrigation programwill be directed towards improving farm level water use efficiency; improvingsystem operation and maintenance (O&M); and ensuring adequate cost recovery.Better water use at the farm level is being approached by supporting wateruser associations for tertiary networks. Such associations assist in planningthese networks and, following construction, are responsible for operating aLndmaintaining them. Training of oi-ficials responsible for the water users;water user association leaders; and key farmers is under way (Irrigation XVI,Ln. 2118-IND) and this project includes also agricultural extension service!training and demonstrations in efficient water use, together with landdevelopment programs. Current standards of O&M of the main systems arefrequently inadequate, though GOT has consistently raised the level of fundsallocated for cash purposes, and has decided in FY84/85 to slow the rate ofnew irrigation construction and divert development funds to improve O&Mstandards. Bank assistance in O&M is designed to improve the organization andtraining of the provincial servizes which are responsible for all O&Mactivities, and to develop and demonstrate new techniques (Irrigation XVII,Ln. 2119-IND, and this project). Cost recovery through the IPEDA tax isefficient, and links levies to the productive capacity of farm lands. Theamount collected fully coverS the O&M costs of the main systems, and farmersthemselves pay in kind for O&M of tertiary networks. Capital cost recovery ishowever normally less than 10%, though this is an equitable position con-sistent with the poverty and small farm sizes of most beneficiaries. The sameprinciples are followed in this project (para. 5.23), especially since many ofthe beneficiaries are recent transmigrants. Bank assistance regarding costrecovery will seek a more direct linkage of IPEDA levies to O&M allocations,and seek to ensure that O&M funds are spent effectively, a prerequisite forany future increases in irrigation cost recovery levels.

1.13 Project Performance Audits. The first five Bank-assisted irrigationprojects have been completed. Project Performance Audits have been issued byOED for four of them,/5 and a follow-up Impact Evaluation Report on the firstproject (Cr. 127-IND) was released by OED in July 1983./6

1.14 The most serious implementation problems were construction delaysand cost overruns. The delays arose because of GOI-s then cumbersome locaLbidding, contracting and fundl release procedures, and shortages of localfunds. Cost overruns were due to additional quantities of work required afterdetailed design and increased unit costs due to rapid inflation and construc-tion delays. However, cost increases were more than offset by higher riceprices and economic rates of return are expected to exceed 40%. Other problemareas include the need to improve operation and maintenance services (O&M) atprovincial levels; provide technical and administrative support to water userassociations; and to promote efficient water use. These problems arerecognized in the strategy adopted for Bank assistance (paras. 1.11 and 1.12).

/5 Credit 127-IND, PPAR Report No. 2047, May 1978. Credits 195, 220 and289-IND, PPAR Report No. 3269, December 1980.

/6 Report No. 4575.

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1.15 The impact evaluation on the first irrigation project (Credit 127-IND), prepared five years after the Project Performance Audit, confirms thatin terms of its specified goals the project continued to be a success. Totalproduction of paddy had by 1982 already exceeded the target set for fulldevelopment in 1985. Real per capita incomes of farm families, already abovethe projected target in 1975/76, continue to increase. The skills of projectstaff have been upgraded significantly. Water user associations however havehad limited success, especially where dry season water is in short supply.Employment and income distribution would be favoredin suitable areas bypromoting additional dry season secondary crops.

1.16 Disbursement Performance. Disbursement of Bank irrigation loanscurrently runs at about 61% of appraisal estimates. Performance has improved(disbursements were below 50% in FY80) through more intensive supervision byBank staff; accelerating start-up activities and using statements of expendi-tures for small civil works contracts. In addition, short lists and proposeddirect invitations for consulting services are agreed with the Bank prior toloan negotiations, and those for civil works for the first year's constructionare usually tendered and contracts negotiated prior to loan effectiveness.This, together with otner continuing Bank assistance to accelerate contractingprocedures and improve the domestic construction industry, should furtherreduce implementation delays.

2. PROJECT BACKGROUND

Focus

2.01 The three most pressinlg weaknesses of irrigation development inIndonesia are probably:

(a) overly-centralized water resource organization and management, duemainly to the inadequate number and technical capacity of provincialirrigation service (PRIS) staff;

(b) inadequate operation and maintenance (O&M); and

(c) poor end-use impact o[ irrigation facilities.

2.02 These three weaknesses require major strengthening of the institu-tions responsible for the irrigation program, especially at the provincial andkabupaten level, and better coordination among them. GOI is attempting todelegate responsibilities to the PRIS for all except major irrigation workssince (a) it is more efficient and cost effective to implement smaller schemesthrough the PRIS, (b) there will be continuity between construction and O&M,and (c) the greater involvement of local governments and farm communitiesshould result in more efficient use and better maintenance.

Selection of Provinces

2.03 Eight provinces /7 have been selected by GOI, assisted by Bankstaff, for strengthening of irrigation activities, based on (a) theirirrigation potential and pr,ssent irrigation activity (Table 2.1); (b) regionaldevelopment potential through transmigration; and (c) government priority forprovincial irrigation development. The irrigated area in the eight provincesrepresents 45% of all irrigation in the Other Islands (17% of the irrigatedarea in Indonesia). The potential for future irrigation so far identified inthese provinces forms 39% of all new irrigation areas identified for develop-ment in Indonesia during Repelita IV, and 48% of the area to be constructed inthe Other Islands (Table 2.1).

/7 South Sumatera, Riau, West Sumatera and Bengkulu in Sumatera, and allfour provinces in Sulawesi.

Table 2.1: POTENTIAL IRRIGATION AREAS

Project Allprovinces Other

(8) Islands Indonesia------------- (OOO ha) --------------

Kecil (small) 87 159 198Sedang (medium) 59 106 133Khusus (special/large) 127 305 372

273 570 703

Source: DGWRD.

The Selected Provinces

2.04 In most of the selected provinces, irrigation development startedfairly recently, and generally until the 1940s there were only small andsimple village constructed systems of up to 200 ha each. The 1963Agricultural Census records that in three of the provinces (Bengkulu,Southeast Sulawesi and Central Sulawesi) there was no irrigation but, as shownin Table 2.2, there has been a 205% increase in the selected provinces sincethen.

Table 2.2: TOTAL IRRIGATION AREAS

1963 1982 Increase--- ('000 ha) ---- (%)

Sumate raSouth Sumatera 83 119 43Riau 7 30 316West Sumatera 64 251 293Bengkulu - 54 _

SulawesiNorth Sulawesi 48 58 21Ceatral Sulawesi - 74 -South Sulawesi 83 257 208Southeast Sulawesi - 28 -

Total 285 871 205

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2,05 Most irrigation development was encouraged by the transmigrationprogram which brought Javanese and Balinese rice farmers tc, the OtherIslands. Over time, many sites have been upgraded to semi-technical kecil andtechnical sedang schemes./8 Over 85% of the irrigation systems in theseprovinces today are sedang, kecil or village systems as opposed to large-scalesystems constructed by DGWRD (Table 2.3).

Table 2.3: IRRIGATrION SYSTEMS IN PROJECT PROVINCES

Keci lLarge and Village

systems sedang systems Total…---------------( '000 ha) ---- …

SumateraSouth Sumatera 28 25 66 119Riau 0 23 7 30West Sumatera 66 130 55 251Bengkulu 0 49 5 54

SulawesiNorth Sulawesi 9 41 8 58Cenrtral Sulawesi 1]2 33 29 74South Sulawesi 20 194 43 257Southeast Sulawesi 0 24 4 28

Total 135 519 217 871(15,') (60%) (25%) (100%

The Kecil Program

2.06 Kecil schemes are sma:Ll, simple, low cost irrigation projects. Theycover generally less than 1.,000 ha (averaging about 400 ha per scheme) with atotal cost of about $1.500 per hectare. The systems were originallynontechnical schemes designed to last approximately 5-10 years, with simplediversion structures used and canals lined only where absolutely necessary.They are now constructed to be more permanent and productive. Most kecilareas consist of land formrerly irrigated by village systems (pengairan

/8 Technical systems have a water supply system separate from the drainagesystem and the volume of incoming water can be measured at severaldelivery points. Semi-technical systems have fewer permanent structures,have only one water measuring device (usually at the major intake) andthe supply and drainagie systems are not always separate.

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pedesaan) or rainfed ricelands, but recently the newer kecil schemes have beenencroaching on new lands (Table 2.4).

Table 2.4: LAND USE IN KECIL SCHEMES

% of Service area withYear Rainfed Sawah

1974/75 741975/76 661976/77 451977/78-1981/82 40-50

2.07 A total of 47 kecil schemes covering about 22,000 ha have beencompleted each year in the selected provinces (Table 2.5). The kecil programhas had a significant impact on rice production. The harvested area in manyformer rainfed areas increased by up to 50%, and yields increased by 2-3 tonsper ha. The net impact of the kecil program over the last eight years,including the use of high-yielding varieties and fertilizer, is estimated tohave increased paddy production by about 1 million tons and improved the livesof about 800,000 farm family members in 24 provinces.

Table 2.5: KECIL SCHEMES CONSTRUCTED /a 1974-82/83

AverageTotal construction Average

Construction per year ha perha (nos.) ha (nos.) scheme

South Sumatera 14,000 (33) 1,800 (4) 430Riau 21,000 (48) 2,800 (6) 430West Sumatera 32,000 (61) 4,000 (7) 520Bengkulu 13,000 (48) 1,700 (6) 280North Sulawesi 15,000 (39) 1,900 (3) 400Central Sulawesi 27,000 (31) 3,400 (4) 880South Sulawesi 33,000 (87) 4,100 (11) 380Southeast Sulawesi 22,000 (29) 2,700 (4) 740

Total 177,000 (376) 22,400 (45) 470

/a Constructed and operational.

2.08 GOI's national kecil program began in 1974 when 164 schemes wereconstructed in 24 provinces to irrigate about 37,000 ha. Another 980 schemes

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have been completed since then, tc irrigate about 400,000 ha. USAID hassupported the kecil program since 1975 through two loans,/9 Experience hasbeen generally good, and GOI now has the capability to select, prepare andconstruct about 100 new schemes a year to satisfactory standards. Selectioncriteria and technical specifications of a typical kecil scheme are shown inAnnex 3. End user performance has been mixed however, as; in some Bank assis-ted irrigation schemes. Slow land, development, lower than expected yields andcropping intensities, and inadequate system management and maintenancesometimes occur. USAID program ncw gives more attention to the continued usieand functioning of kecil schemes than to their construction. A USAID-supported program (HPSIS) is testing the closer involvement of farmers insystem development and management, the role of community organizers, and thecoordination of Ministry of Agriculture (MOA), Ministry of Home Affairs, andMinistry of Public Works (MPW) services for water user associations.Evalution of the HPSIS program (in late 1985), together with Bank experiencein water user training, community organizers, and coordinatirng the threeMinistries under Loan 2118-IND should be useful for improving the impact offuture irrigation programs.

The Sedang Program

2.09 Sedang schemes are fully technical schemes ranging from 1,000 ha to10,000 ha with an average of 3,50C ha. Like the kecil program, sedang schemeswere started at the beginning of Repelita II (1974/75) mostly in rainfed sawahareas of Java, Sumatera and Sulawesi. Most of the schemes in the OtherIslands were identified in existing transmigration sites where rainfed riceand secondary (palawija) crops are cultivated.

2.10 Since 1972 GOI has implemented about 138 new schemes covering about126,000 ha (Table 2.6). Planning, design and investigation generally take twoto three years. Construction requires another three to four years resultingin an implementation period of five to seven years. The technical parameter.sof typical sedang schemes are shovrn in Annex 3. Unlike kecil schemes, thelarger sedang schemes have more water control structures and measuringdevices. The drainage system is a,lso more intensive at main and tertiarylevels. Access roads for O&M are also constructed for all main and secondarycanals and on-farm access roads are built. The investment cost of sedangschemes varies from $3,500 to $4,500/ha. Costs are higher than kecil schemesbecause of: (a) greater intensity of control structures; (b) more forestclearing and land development; (c) road infrastructure; and (d) more remotelocation of sites.

/9 Sederhana Irrigation and Land Development I and II Projects(Nos. 497-0244 and 497-0252).

- 11 -

Table 2.6: SEDANG SCHEMES CONSTRUCTED INREPELITA II & III

Repelita II Repelita III /aInvestment Investment

Nos. of (1982/83 Nos. of (1982/83projects '000 ha Rp bln) projects '000 ha Rp bln)

Sumatera 15 18 15.3 15 18 39.4Java & Bali 22 21 18.7 17 15 46.7Kalimantan 9 5 3.2 9 5 13.1Sulawesi 10 15 12.1 10 7 19.0East Indonesia 12 11 8.4 19 10 27.7

Total 68 70 57.7 /b 70 55 145.9 /c

/a Including anticipated construction in 1983/84./b $90 million (1982/83 dollars)./c $228 million (1982/83 dollars).

The Irrigation Services in the Selected Provinces

2.11 Organization. Each PRIS headquarters is organized into fivesubservices for: (a) planning and design; (b) irrigation construction; (c)river and inland swamp construction; (d) equipment; and (e) O&M. In addition,there is a secretariat for monitoring, personnel, legal, finance, and adminis-tration. The planning and design subservice is responsible for: (i) prequal-ifying design consultants for the province; (ii) evaluating proposals ofconsultants; (iii) preparing design and survey contracts; (iv) supervising thedesign and verifying surveys; and (v) approving payments to consultants. Theirrigation construction subservice is responsible for: (i) prequalifyingcontractors; (ii) preparing and calling tenders; (iii) preparing contracts;(iv) making site inspection visits and preparing changes in design; (v)authorizing payment to contractors; and (vi) certifying completed works. TheO&M subservice is involved in preparing the O&M budget and in ensuring properoperation and maintenance in the provinces.

2.12 The present staffing of each of the subservices in the eightprovinces and planned staff requirements are shown in Annex 7. Each PRIS issupported by offices at the seksi level (a seksi covers between 20,000 and60,000 ha). When the irrigation area of a province is large enough, awilayah office coordinates and supervises the work of several seksis./10 Theseksi office plays a key role in planning, executing and monitoring day-to-dayoperation and maintenance activities. It is supported by subsection

/10 A wilayah normally oversees about 100,000 ha of irrigation.

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(pegaatan) offices each with ditch tenders or jurus covering 700-1,000 ha.They are the most junior members of PRIS field staff and are responsible formaking direct contact with village water officials (ulu-ulu, jogotirto, rajabondar, etc.) concerning water distribution matters. This organizationalstructure is illustrated in Chart 25075. Staff needs at present are greatestat the technician level (STM) and the diploma level engin.eer (BIE).

2.13 The seksi offices are divided into subsections for operations,maintenance, and tertiary construction; some also have a design office. Theyare headed by a BIE level engineer, all other staff being technicians. Seksioperations are almost entirely focussed on O&M, monitoring, and someconstruction supervision for tertiaries. The operations section of each seksiis responsible for directing and controlling the subseksi. offices which areheaded by an irrigation inspector (pengamat). He directs abciut 5-8 overseerswho control the gate operators. The maintenance section of the subseksi isresponsible for maintenance, inspection, and monitoring, directing laborersfor maintenance (grass cutting, minor canal repairs, etc.) and supervisingcontractors on desilting and structural repair work.

2.14 The major weakness in O&M is the result of insuffic:ient staff atseksi and subseksi levels. Staff limitations have often resulted irn portionsof the main irrigation system bein,g unattended during operation. Maintenanceis also neglected. Poor O&M of the main system has often been attributed tobudgetary constraints. In the selected provinces however, budgets for O&Mhave been increased at the rate of 19% per year. O&M bucigets only showshortfalls in two provinces, South Sulawesi and West Sumatera (Table 2.7).

Table 2.7: BUDGET ALLOCATIONS FOR MAIN SYSTEM O&M

1979/80-1981/82 O&M need Actual as(Average) 1982/83 1983/84 1983/84 /a % of need-(Rp per ha)

SumateraSouth Sunatera 6,800 11,500 11,900 13,000 (92%)Riau 7,500 8,400 9,500 13,500 (70%)West Sumatera 6,80C 7,000 7,000 12,000 (58%)Bengkulu 6,250 12,600 12,600 13,500 (93%)

SulawesiNorth Sulawesi 4,700 1,700 11,600 13,500 (86%)Central Sulawesi 5,200 9,800 11,100 13,500 (82%)South Sulawesi 7,000 7,000 7,800 12,000 (65%)Southeast Sulawesi 9,60C 10,300 9,000 13,500 (67%)

/a Estimated as an average of several types of systems.

2,15 Funding of PRIS Irrigation Activities. Expenditure on irrigationactivities between 1979/80 and 1981/82, summarized in Annex 7, Table 4,

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amounted to Rp 124 billion ($191 million). Eighty percent of these fundsoriginated from the national budget (APBN) and 20% from the provincial govern-ment. The O&M and routine expenditure was only 12% of the total budget,development expenditure accounting for the remaining 88%. Almost two thirds(65%) of the expenditure was for kecil, sedang and tertiary programs. Another22% was for inland swamp reclamation (8%); rehabilitation (7%); river improve-ment works (4%); other minor expenditures (2%); and village irrigation (1%).Provincial staff salaries are excluded, but project overheads and incentivepayments for staff are included in each expenditure category.

2.16 PRIS Implementation Capacity. The expected completion of irrigationand swamp reclamation areas in Repelita III for the eight provinces is shownin Table 2.8 and Annex 7, Table 5. Of the 96,800 ha of new irrigation worksthat will be completed by 1983/84, 89,300 ha are sedang and kecil schemes.Over the five year period, the average provincial implementation capacity forthese schemes has averaged about 11,000 ha per province (2,200 ha/year).However, there is wide variation among the provinces, from 17,700 ha for WestSumatera to 4,700 ha in Riau, mainly due to staff limitations and, in someareas, contractor capacity.

Table 2.8: IRRIGATION AREAS CONSTRUCTEDIN REPELITA III

-000 ha

New systems

Village systems 7.5Kecil 70.3Sedang 19.0

Subtotal 96.8

Tertiary 79.4

Rehabilitation 61.4

Inland Swamp 53.0

Total 290.6

2.17 To evaluate contractor capacity an examination of the type ofcontracts indicates that there are more registered contractors for each levelthan contracts tendered each year per province (Annex 7, Tables 6 and 7). Forexample, the average number of contracts tendered per province in 1982/83 was36, of which 9 were over Rp 100 million ($140,000) which accounted for about78% of total contracted values. There are 43 contractors registered and

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prequalified for the larger contracts, and over 200 contractors registered forsmaller jobs, which far exceeds the number of contracts tendered. Althoughthe number of contractors seems to be sufficient, contractor capacity issometimes inadequate, and requires stricter prequalification measures andclose supervision during construction.

2.18 PRIS Budgets. Generally there is very little carryover of budgets(SIAPs) from year to year. SIAPs for 1980/81 and 1981/82 for the kecil,sedang and tertiary programs (Table 2.9) indicate that nmost budgets areutilized within the fiscal year, or at most carried over to the first fewmonths of the next year.

Table 2.9: BUDGETS, EXPENDITURES AND CARRYOVERS (SIAPs) FORKECIL, SEDANG AND TERTIARY PROGRAMS

(Rp billion) /a

1980/81 _ 1981/82Actual Actual

expenditure SIAP expenditureDIP /b (%) /c DIP t) SIAP

North Sulawesi 1.28 1.50 (117) -0.22 2.26 1.64 (72) 0.62Central Sulawesi 1.28 1.55 (120) -0.27 2.37 2.34 (98) 0.03South Sulawesi 2.24 1.90 (80) +0.34 2.26 1.97 (87) 0.29SE Sulawesi 1.40 1.00 (71) +0.40 2.20 1.76 (80) 0.44South Sumatera 1.57 1.53 (97) +0.04 1.96 1.84 (94) 0.12Riau 1.27 1.5'5 (122) -0.28 1.52 1.49 (97) 0.31West Sumatera 3.02 3.00 (99) +0.02 3.50 2.85 (81) 0.65Bengkulu 5.96 6.64 (111) -0.68 7.78 9.60 (123) -1.83

18.02 1.8.6,7 (104) -0.65 23.85 23.49 (98) 0.63

/a Exchange rate for these years is Rp 640 = US$1.00.7T Budgeted expenditures./c Carryovers from budgets.

3. THE PROJECT

Objectives

3.01 The main objective of i:he project is to strengthen the irrigationservices of eight selected Outer Island provinces, particularly in projectpreparation, implementation, and operation and maintenance capabilities. Bythe end of Repelita IV, PRIS staff will perform their own design work forkecil schemes, and be able to properly supervise local consultants who willcontinue to design the more complex sedang schemes. A second objective is to

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assist in financing a three-year time slice of the PRIS construction programsfor kecil and sedang irrigation schemes in the eight provinces. To accomplishthese objectives, the project will:

(a) increase the provincial irrigation engineering and technical staff;

(b) train provincial staff to required professional standards;

(c) apply established DGWRD standards and procedures to ensure uniformquality control during project implementation, operation andmaintenance;

(d) provide better DGWRD technical support to assist the provincialirrigation services; and

(e) strengthen DAAD's land development and extension services.

Project Description

3.02 The project has five components:

(a) institutional strengthening of eight PRIS, by increasing staffnumbers; training; and the provision of facilities, equipment andvehicles. Four of the provinces are in Sulawesi (North, South,Southeast and Central Sulawesi) and four in Sumatera (Bengkulu,Riau, West Sumatera and South Sumatera). Support would also beprovided for the Directorate of Irrigation-s (DOI-s) Subdirectorateof Medium- and Small-Scale Irrigation Construction (Binlak II) whichwill assist the PRIS;

(b) strengthening of the Directorate of Agricultural Area Development(DAAD) within the Director General of Food Crops Agriculture (DGFCA)and its provincial offices for land development (Diperta) andorganizing and training farmers in new irrigation systems throughtraining; provision of facilities, equipment and vehicles andconducting site specific trials and demonstrations;

(c) a three-year time slice of GOI's Repelita IV design and constructionprogram of kecil schemes which will serve about 5,000 ha for designand 34,000 ha for irrigation construction in the eight provinces;

(d) a three-year time slice of GOIs Repelita IV design and constructionprogram of sedang projects which when completed will serve about45,000 ha of designs in all the project provinces and will expect toserve about 26,200 ha of irrigation in four provinces Bengkulu, WestSumatera, Central and South Sulawesi.

(e) consulting services for training PRIS, DAAD and Diperta staff.

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Institutional Strengthening of Eight PRIS and the DOI Binlak IT

3.03 Staff Numbers. Each PRIS has subservices for planning and design;irrigation construction; river and swamp construction; O&M; and logistics (seepara. 2.11). Table 3.1 details the PRIS staff increases to be implementedbetween 1983/84 and 1987/88. An additional 67 Irs and 106 BIEs (engineers)and 279 extra technicians wilL be employed by the eight PRIS. Strengtheningof Binlak II, to support the PRIS and supervise project implementation, will.require the staffing increases shown in Table 3.2. Further details are givenin Annex 6./11 GOI will place the numbers of staff, as established in Tables3.1 and 3.2 by May 1 of each year. An additional 10 Ir (civil engineers); 16BIE (diploma holders);and 40 STM (technicians) for the various provinces havealready been appointed for the 1933/84 requirements.

Table 3.2: BINLAK II STAFF INCREASES

1984/85 1985/86

Techni- Admini- Techni- Admini-Sections Ir/BIE cians stration Ir/BIE cians stration Total

Section IV 2 1 1 2 1 - 7Section V 2 1 1 - 1 - 5

Section VI 2 1 1 1 - - 5

Unit VII - - 2 - - 2 4

Others - - - - - - -

Total 6 3 5 3 2 2 21

/11 Staff increases are basEd on staff output from the eight provinces overthe period 1979/80 to 1980/82 (see Figures 1 and 2 in Annex 6).

PRIS STAFF INCREASES 1983/84-1987/88(Provincial offices)

Annual staff increase

Present Future Increase IR (Civil) /a BIE (Diploma) /b STM (Technicians) /cProvince IR BIE STM TR BIE STMi I~RBIE -SM 83/84 84/85 85/86 86/87 87/88 83/84 84/85 85/86 86/87 87/88 83/84 84/85 85/86 86/87 87/88

North Sulawesi 5 7 22 13 30 93 8 23 71 2 2 2 1 I 4 4 5 5 5 11 15 15 15 15Central Sulawesi 4 7 26 12 20 67 8 13 41 2 2 2 1 1 2 2 3 3 3 8 8 8 8 9South Sulawesi 15 27 75 25 42 118 10 15 43 2 2 2 2 2 3 3 3 3 3 9 9 9 8 8S.E. Sulawesi 3 7 48 10 16 63 7 9 15 - 4 2 1 - - 4 2 2 1 3 3 3 3 3

South Sumatera 14 23 89 30 38 115 16 15 26 3 3 3 4 3 3 3 3 3 3 5 5 5 5 6Riau 6 17 29 13 29 72 7 12 43 - 3 2 1 1 2 3 3 3 1 18 9 8 8West Sumatera 15 31 108 22 40 130 7 9 22 - 3 2 1 1 - 5 2 2 - - 10 4 4 4 -

Bengkulu 10 25 79 14 35 97 4 10 18 1 1 1 1 - 2 2 2 2 2 4 4 4 3 3

Total 72 144 476 139 250 754 67 106 279 10 20 16 12 9 16 26 23 23 18 40 72 57 54 56

/a IR University trained engineers.

/b University trained diploma holders.

IC Draftsmen, surveyors, and technicians

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3.04 The main sources of professional staff for PRIES and Binlak II willbe from scholarship students bonded to DGWRD, private sector recruitment andDGWRD staff released from special projects which are being completed. Thereshould be little difficulty in obtaining additional staff, since the numberavailable considerably exceeds requirements for the project (Table 3.3).Existing arrangements for DGWRD scholarships appear adequate and do not needBank support.

Table 3.3: SUPPLY AND DEMAND OF IRs AND BIEs

Supply ofprofessional engineers per year

BIEs Irs

Supply Sources

Scholarships (DGWRD) 60 15Private sector 20 15Completed special projects 10 5

Total 90 35

Needs 23 16

Surplus 67 19

3.05 Staff Training. PRIS professional and technical staff will takepart in (a) formal training in the MPW Regional Training Centers (Diklats);/12(b) special training courses in the PRIS, conducted by consultants; and (c)on-the-job training by consultants attached to the PRIS.

3.06 Formal training for technicians will be conducted in the Diklatswhose facilities and training courses are being strengthened through Loan2258-IND (Report No. 4173-IND, March 1983). These training facilities shouldbe adequate and the project provides only participants' per diems. Technicaltraining will focus on (a) surveying and mapping, (b) drafting and costing,(c) construction supervision and (d) operation and maintenance. Courses willbe of three and a half months duration. Eighteen technicians per provincewill be trained annually, and over the three-year project: period, some 432technicians (57% of the technical staff) will participate.

3.07 Special training for prafessional staff will be provided partly bythe Diklats, and the balance by PRIS consultants. For Diklat courses, which

/12 Wilayah Diklats at Yogyakarta and Surabaya; and at t:he Bidang Diklat atJakarta (Center for Construction Guidance and System Control (CGSC)).

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are general in nature (see Table 3.4), participant per diems and travel costswill be provided by the project. In addition, courses covering planning andimplementation of kecil and sedang programs, will be conducted byexpatriate consultants assisted by local consultants, and counterpart DGWRDand DGFCA staff. These courses will be attended by Provincial Public Works,Provincial Agricultural Services, and Central DGWRD and DGFCA staff. Short-term specialist consultants will provide support to the training program bypreparing and conducting training courses in specialized areas. Staff fromDPMA, universities, and other Government agencies will also participate.Forty-eight professional staff will be trained each year in the Diklats; atotal of 144 over the three year period. In addition 410 professionals willreceive training from consultants over the same period. Table 3.4 lists theformal training to be provided under the project. Materials and guidelineswhich were developed by DGWRD and consultants to the two USAID assisted kecilprojects (para. 3.16) will be used for training and implementation (Annex3). These materials require only minor reorganization or expansion to coverthe sedang program.

3.08 On-the-job training will be provided at PRIS and Binlak II offices,and at DAAD and Diperta, for all phases of the kecil and sedang programs,in: project management, planning and budgeting; project identification andevaluation; project selection for survey and design; survey and design by PRISstaff; survey and design contract administration; project selection forconstruction; tender and contract procedures for construction; operation andmaintenance; and monitoring and evaluation of projects during and afterconstruction.

3.09 Facilities, Equipment and Vehicles. Provinces which do not have adesign unit (Riau, South Sumatera, North Sulawesi, Southeast Sulawesi andCentral Sulawesi) will be provided with 300 sq m buildings. These buildingswill be used for additional office space; drawing rooms; lecture rooms;duplicating rooms; and storage and will be furnished, including drafting andoffice equipment. Each of the eight PRIS will be provided with additionalsurvey, soil testing, hydrologic testing and water quality testing equipment(Annex 1). A total of 24 jeeps and 48 motorcycles will be provided.

Strengthening of DAAD

3.10 Land Development. Pilot land development facilities will beestablished on a selected sedang system now under construction in each of theeight provinces. The facilities and services to be provided in each provinceinclude: (a) the unit field office which will have a 70 sq m office buildingwith furniture; office equipment; and a standardized set of minor survey anddesign equipment; (b) light land development equipment for lease to farmergroups, including chain saws; winches; cranes (manually operated); and handtools; and (c) vehicles (jeeps and motorcycles) for field operations(Annex 1). Training will also be given to 430 professional and technicalstaff using GOI's senior staff and consultants (See Annex I, Table 14).

3.11 Soil and Water Management. Within a newly completed sedang or kecilscheme in each of the eight provinces, one tertiary block serving 100-150 hawill be selected for conducting field trials and demonstrations on farmers-fields and for on-the-job training for PPLs, PPMs, PPSs, water users groups

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Table 3.4: TRAINING

Course Number trainedlength 1984/85 1985/86 1986/87 Total(days)

MPW DIKLAT Training(a) for technicians

Survey and mapping 115 48 36 36 120Drafting and cost estimation 90 48 36 36 120Construction supervision 115 24 48 36 108Operation and maintenance 90 24 24 36 84

Subtotal 144 144 144 432

(b) for engineers (BIEs & Irs)

Planning and design 45 20 16 16 52Operation and maintenance /a 45 8 16 16 40Project management /b 45 20 16 16 52(Construction supervisionand monitoring)

Subtotal 48 48 48 144

Total MPW Diklat Training 192 192 192 576

Consultant CoursesProgam planning and

budgeting 14 20 - - 20

Project evaluation andselection 7 150/c 150/cl - 300

Planning and design ofirrigation systems 28 150/c 150/cl - 300

Soils and foundations 28 1507W l507d - 300Hydrology 7 150/c 150/d - 300Project monitoring and

evaluation 14 30 - - 30

Operation and maintenance /a 28 30 30 - 60

Total Consultant

Course Training 230 180 - 410

/a Mainly seksi staff.7W Includes seksi and PRIS staff./c Same group/d Same group

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and farmers. Selection of the pilot areas sites will be made in consultationwith the project manager of the National Agricultural Extension Program toensure close association with Rural Extension Center (REC) facilities andactivities. Each area will require the following buildings and equipment (asdetailed in Annex 1, Table 17) to complement REC facilities: (a) an officebuilding and equipment, staff and consultant housing, storage facilities andfurniture; (b) agricultural machinery and equipment including soil and watertesting instruments, weather monitoring instruments, equipment for watermetering and control, hand tractors, sprayers, threshers, rotary weeders and agenerator; (c) vehicles (jeeps and motorcycles) for each pilot farm; (d)training of 840 PPLs, PPMs and PPSs to be conducted by senior GOI staff andconsultants (see Annex 1, Table 14). The PPLs, PPMs and PPS will train wateruser group leaders and key farmers.

Kecil Irrigation Design and Construction

3.12 A three-year time slice of design of 10 kecil schemes covering 5,000ha and the construction of about 80 new kecil irrigation schemes in the eightprovinces will be included in the project, which would expect to irrigateabout 34,000 ha at full development. The estimated area and number ofprojects which will be evaluated and selected by each PRIS annually, is givenin Table 3.5. Selection standards and technical criteria (Annex 3), and otherprocedures (para. 4.06) have been agreed with GOI during negotiations (para.6.01(b).

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Table 3.5: KECIL PROJECT AREAS

Repelita IV programThree year time slice 1984/85 to 1988/891984/85 - 1986/87 TotalNo. of Area no. of Area

Province projects ha projects ha

SulawesiNorth Sulawesi 10 4,080 17 5,800Central Sulawesi 9 6,280 11 7,800South Sulawesi 18 7,140 26 10,900Southeast Sulawesi 13 3,600 18 5,000

SumateraSouth Sumatera 3 1,260 4 2,100Riau 7 2,580 10 4,300West Sumatera 11 5,280 18 7,800Bengkulu 9 3,780 15 6,300

Total 80 34,000 119 50,000

Sedang Irrigation Design and Construction

3.13 A three-year time slice of design of nine new sedang schemes covqer-ing an area of about 45,000 ha and construction of six sedaLng projects in fourprovinces (West Sumatera, Bengkulu, South Sulawesi and Central Sulawesi)serving a total area of about 26,200 ha (see Table 3.6). I'he six schemes forconstruction have been appraised. by DPP with the assistance of consultants(Binnie and Partners)/13 and have been reviewed by the Bank. All have aminimum ERR of 12%, no social problems, and a maximum of 5% of land presentlyunder permanent crops. The Mentawa scheme is typical, and is analyzed inChapter 5.

/13 Appraisal reports are maint:ained on the project f:ile (Annex 4).

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Table 3.6: SEDANG SCHEMES

Net irrigableScheme area (ha)

BengkuluMuko-Muko 6,800Air Nipis 3,100

West SumateraSuliti 1,500Inderapura 4,100

South SulawesiPadang Sapa 6,700

Central SulawesiMentawa 4,000

Total 26,200

Water Supplies and Demand

3.14 Estimated water requirements are based on rainfall, evapotranspira-tion and soil type. Average annual rainfall over most of the eight provincesis 2,300 mm to 2,700 mm, though in drought years (one in five-year lows)rainfall is estimated at 1,900 mm to 2,100 mm. Evapotranspiration, estimatedusing the Penman method, is 1,300 mm to 1,400 mm. Deep percolation afterpuddling is between 1 mm and 3 mm/day for most of the soils where rice isgrown. Based on these parameters and using standard crop coefficients,maximum water duties for canal design range between 1.3 1/s to 1.6 l/s perhectare. Water supply calculations are based on actual river flows. Allavailable sources of rainfall data and runoff are used to estimate the one infive-year low wet and dry season flows. Because actual flow data and rainfallrecords may be sometimes inadequate, they are checked against standard flowestimates for each sub-region prepared by the DGWRD Institute of Hydrology(DPMA). Regional flow estimates of catchment yields are usually 30 1/s per sqkm for the wet season and 10 1/s for the dry season. Special attention ispaid to assessing firm water supplies and scheme requirements by DPP and DPMAhydrologists before PRIS proceeds with detailed design. Schemes are designedso that available water provides, as a minimum, irrigation for a wet seasonrice crop over the whole service area.

Consulting Services

3.15 Expatriate consultants will be recruited by DOI to serve both DOIand PRISs. For DOI, expatriate consultants will provide 11 long-term advisorsand six short-term specialists (250 man-months). Each PRIS will have one

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expatriate and one local consu:Ltant resident over a 20-month period. Therewill be two expatriates and one local consultant in Binlak II based inJakarta. For DAAD, there will be two expatriate consultants providing 16 man-months for SDAE, and 16 man-months for SDWM. They will supervise eight localconsultants (12 man-months each, one in each province) for SDAE and four localconsultants (24 man-months each) for SDWM.

3.16 Award and completion of all GOI procurement controls of contractsfor the foreign and local consultant services will be a condition of loaneffectiveness (para. 6.02). For continuity, expediency, and economy, GOIintends to employ the same consultants who trained DOI and DAAD staff between1976 to 1983 under the USAID Sederhana I and II loans. These consultantsdeveloped standards and training material for kecil irrigation and for landdevelopment. However, the consultants were based in Jakarta and paidintermittent visits to PRIS, with limited impact on staff training and devel--opment. It has been decided therefore to emphasize the training function withone consultant in each province under this project. Consultant inputs aresummarized in Table 3.7.

Status of Project Preparation

3.17 Strengthening of eight PRIS and DAAD. Terms of reference andinvitation documents for foreign and local consultants for training werereviewed with the Bank at loan negotiations, and contracts will be awardedprior to April 1984. All equipment lists and vehicles to be procured havebeen agreed, and award of contracts (which will be procured locally) will befinalized by April 1984.

3.18 Kecil Construction. For 1984/85 construction scheimes have beenselected and designed according to procedures agreed with the Bank. Designsare complete, and contracts for the first year's construction will be awardedin April 1984. For subsequent years (1985/86 and 1986/87) scheme selectionand evaluation will be completed by September 1 of the previous GOI fiscalyear. Tendering for construction will be completed prior to the start of thenew GOI fiscal year, so that contract awards are made by April each year. Fornew projects not yet designed, selection will be completed by July 1 and awardof consultant contract for design will be by August 1.

3.19 Sedang Construction. The DPP prepared appraisal reports in March1983 for the six selected schemes. These have been reviewed by the Bank. Alldesign work for the six schemes has been completed. Tendering and preparationof contract documents will be completed by March 1984, and contracts will beawarded in April 1984. Similar procedures will be followed for subsequentyears.

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Table 3.7: CONSULTANT SERVICES INPUTS FOR TRAINING

International Local Total---------- (man-months) --------------

PRIS & Binlak IIResident in PRIS 160 160 320Specialist PRIS/Binlak II 50 36 86Coordinator in Binlak II 40 24 64

Subtotal 250 220 470

DAAD & DIPERTAResident in DAAD 32 32 64Resident in DIPERTA - 192 192

Subtotal 32 224 256

Total 282 444 726

3.20 Implementation Schedules. The kecil implementation targets aremodest in terms of what has been achieved elsewhere in Indonesia. The targetfor sedang schemes is slightly higher (20%) than past performance, sincedesigns are completed. The implementation program for the project ispresented in Chart 25231.

Cost Estimates

3.21 Total project costs /14 attached are estimated at $150.4 million(including $2.0 million of taxes and $0.2 million for the front-end fee) ofwhich $51.2 million (34%) will be foreign exchange (Table 3.8 and Annex 1).All project costs are expressed in mid-1983 prices. For kecil construction, athree-year time slice of projected expenditures between FY1984/85 to 1986/87is included. The unit rates for kecil schemes are based on similar civilworks in each province between 1980 and 1982. Unit rates of sedang schemesare based on ongoing contracts for similar work in the provinces concerned.Estimated man-month cost (including salary, costs, fees, international traveland subsistence) of local and foreign consultants are $2,500 and $12,000respectively and are based on recent contracts (Annex 1). A 10% allowance hasbeen included for physical contingencies. Expected price increases of 28%have been calculated on projected local cost inflation of 20% for 1983, 15% in

/14 "Total project costs" refers to expenditures incurred in the first threeyears of works which will take five years to complete. 71% of overallcosts will be incurred during the three year time slice (Annex 1,Table 1).

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1984, 11% in 1985 and 7% thereafter, and on foreign cost inflation of 8.0% for1983, 7.5% for 1984, 7% for 1985 and 6% thereafter.

Table 3.8: PROJECT COST SUMMARY

Liocal Foreign Total Local Foreign Total(Rp billion) ---- --- (US$ million) ---

Institutional Suprtfo r PR-[SFacilities and equipment 0.5 1.2 1.7 0.5 1.3 1.8Training 0.7 1.0 1.7 .7 1.0 1.7Administration and staff cosls 1.2 - 1.2 1.2 - 1.2

Subtotal 2.4 2.2 4.6 2.4 2.3 4.7

Institutional Support for DADWater management equipmentfacilities and training 0.4 0.4 0.8 0.4 0.4 0.8

Land clearing equipment 0.1 1.0 1.1 0.1 1.1 1.2Training 0.5 0.7 1.2 0.5 0.7 1.2Administration and staff 0.2 - 0.2 0.2 - 0.2

Subtotal 1.2 2.1 3.3 1.2 2.2 3.4

Irrigation ConstructionKecil program 30.0 14.2 44.2 30.9 14.7 45.6Sedang program 31.2 16.1 47.3 32.2 16.6 48.8

Subtotal 61.2 30.3 91.5 63.1 31.3 94.4

Consultants 1.4 2.9 4.3 1.5 3.0 4.5

Base costs 66.2 37.5 103.7 68.2 38.8 107.0Physical contingencies 6.6 3.8 10.4 6.8 3.9 10.7Expected price increases 21.5 8.1 29.6 22.2 8.3 30.5

Project costs 94.3 49.4 143.7 97.2 51.0 148.2Taxes on civil works 1.9 - 1.9 2.0 - 2.0Front-end fee - 0.2 0.2 - 0.2 0.2

Total Costs 96.2 49.6 145.8 99.2 51.2 150.4

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Financing

3.22 The proposed Bank loan of $89 million will finance about 60% oftotal project costs including the front-end fee./15 The Bank loan willfinance the foreign exchange costs ($50.7 million) of the project excludingreserve procurement of vehicles ($0.5 million) and $38.3 million of localcosts. GOI will finance the balance of project costs of $61.4 million(Table 3.9), together with another $61.6 million to complete the programbeyond the 3 year time slice financed by the Bank.

Table 3.9: FINANCING PLAN

Source Local Foreign Total---- (US$ Million) ---------------

Bank 38.3 50.7 89.0GOI 60.9 0.5/a 61.4

Total /b 99.2 /b 51.2 150.4

/a Foreign exchange content of vehicles under reserve procurement./b Includes civil works taxes of $2.0 million.

Procurement /16

3.23 Civil Works. Procurement is summarized in Table 3,10. Civil worksfor irrigation ($102.2 million) will be widely dispersed, small in scale, andwill require close interaction with villagers, both as beneficiaries and aslaborers. At least 65% of the civil works contracts will fall in the range of$0.2 million to $1.5 million. Because of their size, dispersion, and natureof construction, they are unlikely to be attractive to foreign contractors.Accordingly, all will be tendered by the PRIS on the basis of GOI's localcompetitive bidding (LCB) procedures, which are acceptable to the Bank.

3,24 Equipment. Excluding vehicles, equipment worth about $0.7 millionwill be procured by the Directorate of Logistics in DGWRD in small lotsthrough GOI procurement procedures acceptable to the Bank.

/15 The Bank's share of costs to complete construction over 5 years is 42%.

/16 Costs in this section include expected price increases but not physicalcontingencies.

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Review of Procurement

3.25 Civil Works. For civil works the Directorate of Irrigation(Binlak II) and the Procurement Control Unit (DGWRD) will review awards pro-posed by the PRIS and authorize all contracts over $0.2 million. In additionSEKNEG /17 approval will be obtained for contracts over $0.5 million.Contracts below $0.2 million will be authorized by the PRIS concerned. TheBank will review prior to tendering and award about twenty contracts ($36 mil-lion), each over $1.5 million, covering an aggregate of about 30% of the valueof civil works. Another 130 contracts, totalling about $6b million andranging from $0.2 million to $1.5 million in size, will be reviewed on a postaward sample basis. Contracts smaller than $0.2 millicn (total of $6.2 mil-lion) will not be reviewed by the Bank. and will be financed fully through theGOI budget (Table 3.10).

3.26 All consultant invitation documents, proposed awards, and contractswill be reviewed by the Bank.

3.27 Equipment procurement will not be reviewed by the; Bank because ofits simple nature and small value.

Disbursements

3.28 Loan funds will be disbursed against.

(a) 75% of the cost of civil works contracts of value $0.2 million orabove for kecil and sedang construction;

(b) 100% of foreign expenditures for directly imported equipment, 95% oflocal expenditures (ex-factory prices) for locally manufacturedequipment and 65% of locally procured equipment;

(c) 100% of consultant services costs; and

(d) 100% of costs of trairing, and related materials, and buildings.

3.29 The allocation of loan proceeds is summarized in Annex 1, Table 2.Quarterly statements of expenditure (SOE) will be used (Annex 5) to disburseagainst (a) progress payments tc, civil works contractors w'ith contract docu-ments held by DOI for inspection by the Bank, and (b) training costs. SOEprocedures have been used extensively for Bank supported irrigation projectsin Indonesia with favorable results. Disbursements for equipment and serviceswill be against contract documerLtation.

/17 SEKNEG: The State Cabinet Secretariat is required by Presidential Decree(Kepres 14A of 1980) to review and authorize all contract awards above RP500 million ($532,000).

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Table 3.10: PROCUREMENT /a(US$ million)

Category ICB LCB Other Total

Civil works(a) Contracts above $0.2 m - 101.0 - 101.0

- (75.8) - (75.8)(b) Contracts below $0.2 m - 1.2 - 1.2

_ (-) -(-)

(c) buildings - 1.3 - 1.3- (0.8) - (0.8)

Training - 3.7 - 3*7- (2.2) - (2.2)

Equipment - 1.8 - 1.8- (0.5) - (0.5)

Vehicles - - 0.8 0.3

2 _ _ _ ~ ~~ ~~ (-) (-) (-)

Consultants - Local - - 3.0 3.0(-) (2.3) (2.3)

- Foreign - 4.3 4.3(-) (3.9) (3.9)

Land Development - 9.9 9.9

(-) (-) (-)

Subtotal - 109.0 18.0 127.0(79.3) (6.2) (85.5)

Unallocated 13.3(3.3)

Administration and land acquisition 7.9

(-)

Taxes on civil works 2.0(- )

Front-end fee 0.2

(0.2)Total 150.4

(89.0)

/a Numbers in () indicate loan disbursements. Other figures are base costsplus expected price increases.

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3.30 Disbursement of about 80% of the loan amount is geared to the draw-ing down of expenditures from GOI's FY84/85 to 86/87 annual budgets for keciland sedang construction, which are procured each year mostly through 12-monthcontracts. Accordingly the disbuirsement profile follows GOI experience withannual budget performance and current carryover (SIAP) ratios (para. 2.18). Anine-month delay between contract: payments and loan disbursements has beenincluded; thus disbursements should be completed over 45 months (Annex 1,Table 3).

Accounts and Audits

3.31 Detailed accounts and records are kept by DGWRD and the PRIS foreach budget item for each budget year, and carryovers (SIAP) are permitted fortwo years. Because SIAPs are permitted, cash books and accounts are notclosed until the budget for t:he line item has been fully spent. All accountsare subject to two audits: (a) by the Inspector General of MPW and (b) by theDirector General of State Financial Control (DJPKN). The State Auditor-sshort-form reports analyze income and costs, and check that the costs havebeen properly incurred. Consultant accounting advisors are being engagedunder the Irrigation XVI Project (Ln. 2119-IND) to review the accountingsystems of the provinces. Assurances have been obtained at negotiations irnrespect of maintaining adequate accounts, retention of all contracts, orders,receipts, etc. for all SOE disbursements for one year after closing of loan,independent auditing by DJPKN, and timely submission to the Bank of financialinformation for each PRIS (para. 6.01(f)).

Environmental Protection

3.32 Conversion of easily eroded grassland and dryland farming areas toirrigated sawah provides greater ecological stability since (a) erosion ismuch reduced and (b) farmers" incomes from rice are raised sufficiently todeter their continual march into catchments for slash and burn cropping.Nevertheless, encroachment by shifting cultivators will be difficult to con-tain in the long term without prDtective measures. Measures must be designedfor each specific scheme since catchment condition varies widely, and mayrequire adjustment of existing and planned nature reserves or protection offorestry boundaries. Priority will be given to sedang schemes to be con-structed under the project, since kecil schemes are small. The Ministry ofForestry (MOF) assisted by PRIS will review the need for catchment protectionmeasures for each sedang scheme and prepare and implement suitable controlmeasures (including demarcation, facilities, forest guards, vehicles andequipment, reforestation and if necessary resettlement). An assurance to t:hiseffect has been obtained from GOI during negotiations [para. 6.01(e)].

4. ORGANIZATION AND MANAGEMENT

4.01 DGWRD through the Directorate of Irrigation (DOI) will beresponsible for overall project coordination, assisted by the Directorate ofPlanning and Programming (DPP) in the evaluation and appraisal of proposedkecil and sedang schemes (see Chart 25082). Each PRIS will be responsible for

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implementation of all work in their respective provinces. DGFCA through DAADand Diperta will execute the land clearing, sawah formation, and farmeradvisory components. DOT and DAAD will be the funding channel to the PRIS forloan an government funds, in keeping with GOI's requirement that only centralgovernment entities administer external assistance. MOF will prepare andimplement catchment protection measures for each sedang scheme. Agreement tothis effect was reached during negotiations (para. 6.01 (a)).

Kecil and Sedang Construction Programs

4.02 Kecil schemes are usually identified through consultations betweenfarmers and local government officials. Afterwards, the PRIS completes astandard data form which gives salient features such as available waterresources and present land use. On the basis of this data, DOITs Binlak IIjointly with DPP assesses the likely technical, economic and social viabilityof the schemes. This initial screening is followed by a site visit by BinlakII and DPP staff and confirmation of data. If appropriate, DOT makes thedecision to proceed to detailed survey and design. Sedang projects areidentified in much the same way, but more frequently come from PRIS initia-tives. The DPP with SDPD prepare an appraisal report for each sedang schemebefore the project proceeds to detailed design. The PRIS is responsible forcontracting and supervising local consultants for both kecil and sedang surveyand design work. As PRIS capabilities improve (para. 3.01), the share ofkecil design work contracted to consultants will diminish, and will be phasedout by about 1988. Sedang design will continue to be done by consultantssupervised by PRIS, and reviewed by DOI's Design Subdirectorate in Bandung.

4.03 Once design is completed, PRIS prepares quantity and cost estimatesand incorporates the schemes in their annual budget proposal. Budgets arefirst reviewed by DOI. DPP is responsible for (a) consolidating all irriga-tion budget proposals into a DGWRD budget request including assigning priori-ties among programs, (b) negotiating the annual budget with GOT,and (c)preparing approved budgets, within which DOI may adjust kecil and sedangpriorities and work schedules if necessary.

4.04 On the basis of authorized budgets, construction is contracted byPRIS, which supervises work on a day-to-day basis. PRIS staff report monthlyon progress/18 and expenditures to Binlak II, whose staff visit each site atleast every quarter (or whenever problems arise) to independently reviewprogress and ensure quality control. The Director of Irrigation receives aquarterly supervision report from Binlak II covering the kecil and sedangprograms. Following construction, final payments and release of bonds tocontractors by PRIS are contingent on Binlak TT-s certification ofconstruction.

4.05 These procedures, set out in Charts 25072 and 25073, have beenfollowed under the USAID supported loans (para. 2.08), found satisfactory, andwill be followed under the project. DPP-s sedang project appraisal reportswere reviewed in the field by Bank staff and found to be satisfactory also.

/18 Petuajuk Monitoring Project, November 1980, revised April 1982.

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4.06 The procedures involve not only adherence to technical and economicspecifications to be agreed with the Bank (Annex 3), but to agreements to beobtained from farmers at various stages of the project cycle, including: (a)their commitment to irrigation and their willingness to participate in thepencatakan sawah, which will be obtained at the identificatilon stage; (b)location of tertiary canals and structures and the commitment to form wateruser associations (P3A) within the tertiary block, which will be obtained atthe design stage; and (c) prior to completion of construction, certificationof the water user association, fees to be collected, and membership. Anassurance to this effect has been obtained from GOT at negotiations coveringthese features (para. 6.01(d).

National Level organization anad Management

4.07 A project office wi:Ll be set up in DOI's Binlak II (see Chart25080), to implement institutLonal strengthening and monitor irrigationconstruction. The project manager will be the chief of Binlak II. Theproject office will be established within the existing Binlak II, Sections IV(for Sumatera) and VI (for Sulawesi) and Unit VII for foreign aid admin-istration and training which are headed by engineers (Sections IV and VI) andan administrator (Unit VII).

4.08 Binlak II will coordinate the kecil and sedang programs with theSubdirectorate of Planning and Design (SDPD), DPP and PRIS for projectidentification; selection for survey and design; selection for construction;evaluation, monitoring and certification. Sections IV and VI will undertakefield supervision of kecil and of sedang schemes at various stages ofconstruction and will prepare a quarterly supervision report for Sulawesi (bySection VI) and for Sumatera (by Section IV). The forma.l arnd on-the-jobtraining to be performed by consultants will be the responsibility of theChief of Binlak II, coordinated by Unit VII. SDPD and BinlaLk II will reviewall training material and evaluate the impact of the trainirng programannually, and mutually determine with the Bank changes to be incorporated sothat training objectives are met.

4.09 Unit VII will be responsible for: (a) ensuring the staff build-upin the eight provinces; (b) coordinating the training oi PRI:S technicians; (c)coordinating formal training with. SDPD, DPP, PRIS; and consultants withinPRIS; (d) collating civil works procurement documentation from the PRIS andSPDP, obtaining necessary GOI approvals, and preparing withdrawal applicationsand forwarding them to the Bank's Resident Office. Agreement has been reachedduring negotiations that DGWRD will prepare a quarterly progress report forthe Bank with Sections IV and. VI on the status of staff development andtraining; and the selection, design and construction progress of kecil andsedang projects and submit such reports to the Bank (para. 6.01 (c).

4.10 Binlak II has had Extensive experience in administering two USAIDloans (Sederhana I and II). Binlak II's performance has been generallysatisfactory, but staff will neecL to familiarize themselves with Bankprocurement and disbursement procedures.

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Provincial Level Organization and Management

4.11 Each PRIS will establish its own project office to execute theproject. The PRIS project office will consist of the three subservice officesof planning and design, irrigation, and construction and O&M, headed by thechief of the PRIS who will nominate his deputy chief for managing the day today operation of the project (see Chart 25076). Each PRIS project office willprepare standardized project monitoring reports /19 on a monthly basis forkecil and sedang project implementation, and on a quarterly basis for staffbuild up and training.

Land Development and Institutional Strengthening of DAAD

4.12 National Level. These components will be coordinated at thenational level by DAADs two subdirectorates: Area Expansion (SDAE) and WaterManagement (SDWM) (see Chart 25230). The SDAE will be responsible for: (a)coordinating the planning, designing and budgeting for the pencatakan sawahprogram; appointing consultants; and coordination with Binlak II; (b)appointing local consultants for training; (c) coordinating and procuringequipment and vehicles for UPP and Diperta; (d) coordinating the training ofDiperta staff; (e) monitoring land development activities in the eightprovinces and (f) preparing quarterly supervision reports. The SDWM will beresponsible for: (a) developing standard specifications for pilot farms andmonitoring construction on these farms; (b) coordinating procurement ofequipment and vehicles; (c) recruiting local consultants for training; (d)standardizing the training material to be used by the Diperta staff fortraining PPLs; (e) supervising training activities and water managementextension; and (f) preparing quarterly supervision reports on water managementtraining.

4.13 Provincial Level. Within each Diperta, a subservice (subdinas) isresponsible for extension and for land development. The subdinas for landdevelopment will supervise the field sectional offices (UPPs) (see Chart25079). The subdinas for extension will be responsible for supervising thepilot farm water management program. Both subdinas will be responsible forthe on-the-job training using local consultants.

Coordination of Irrigation and Land Development Activities

4.14 To reduce delays, DOI, DAAD, and Agraria /20 have agreed to thefollowing: (a) topographic maps of 1:2000 scale will be submitted by each PRISto the corresponding Diperta as soon as surveys are completed; (b) eachDiperta will submit to the corresponding provincial Agraria 1:1000 survey mapsto be used for preparing the land use zoning plans; (c) tertiary layout maps

/19 Petunjuk Monitoring Projek (Director Jenderal Pengairan), November 1980,revised April 1982.

/20 Directorate General of Agraria-s provincial provincial and field officesare responsible for land acquisition.

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will be submitted by each PRIS to corresponding Diperta for review prior tostrip surveys; and (d) each Diperta will map the areas to be developed andsubmit them to corresponding provincial Agraria for cadastral mapping seeChart 25081). To improve coordination between agriculture and irrigationactivities the following will be undertaken: (a) the Subdirectorates of DAAD,Binlak II and SDPD will meet every quarter in Jakarta to discuss projectimplementation in the eight provinces; and (b) PRIS and Diperta will meetmonthly in each province to review, project implementation ancl ensurecoordination.

Monitoring and Evaluation

4.15 Under Irrigation XVII (Ln 2119-IND) a project monitoring and evalua-tion system which closely follows experience in the Philippines is beingintroduced by DPP and the East Java Irrigation Service (EJIS'). Progresshowever is insufficient to judge how far and how fast this system should beintroduced throughout the irri.gati.on sector. Accordingly, this project willfollow monitoring systems that: halve been prepared by BinLak II and by DAADwith the help of USAID./21 Reporl:s for each crop season wil:L be submitted tothe head of each provincial irrigation service, and reviewed by the ProvincialIrrigation Committees before t:he next crop season. Quarterly and seasonalmonitoring and evaluation will be submitted to Binlak II and DAAD who willprepare quarterly implementation reports which compare performance againstplanned progress, determine constraints and action, and extract lessons forplanning future irrigation development. Agreements have bee.n reached with GOIat negotiations that such reports covering design and construction implemen-tation activities will be submaitted to the Bank (para. 6.01(c)).

5. BENEFITS, ECONOMIC JUSTIFICATION AND RISKS

5.01 Strengthening the provincial irrigation services, and improvingtheir coordination with agricaltural and local government services, will leadto important economic benefits. The benefits include improved efficiency inconstructing smaller scale irrigation systems through better selection anddesign, and improved operation and maintenance at farm level through greaterinvolvement of local communities in these processes. These are more difficultto quantify than the increased rice production expected from kecil and sedangschemes. In the eight provinces concerned, rice production is expected toincrease by about 200,000 tons per year at full development benefitting about60,000 low income farm families, many of which are recent transmigrants.

PRIS and DAAD Institutional Development

5.02 Development of PRIS staff skills wiLll result in better identifica-tion, design and construction of irrigation systems, and recluce project coststhrough greater accuracy, lower consultant costs and improved operation ofstructures. Costs may decrease by as much as 5-10%, up to $35 million duringRepelita IV in the eight provinces. Similarly, improvements in operation andmaintenance through increased, staff numbers and improved skills through PRIS

/21 Project Monitoring Guidelines, November 1980 (Revised '982).

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training should result in more efficient operation. This in turn willincrease irrigated areas particularly in the dry season, by an estimated 5%(25,000 to 30,000 ha per year) and yearly rice production by 60,000 to 80,000tons. Increasing the PRIS staff and their skills for design work shouldreduce the need for consultant inputs (which will cost about $0.75 million peryear) by the end of Repelita IV. Based on performance during Repelita III,the expected improvement in the ability of DAAD and Diperta staff toaccelerate land development is likely to result in an additional 4,000 hacoming into production each year. Water management demonstrations will alsohelp farmers to adapt their cultivation to newly irrigated areas and increaseproduction more rapidly. As result, full crop production may be acceleratedby about 2 years.

Assumptions Used In Analyzing riaio cee

5.03 Financial and Economic Pricing. Economic and financial prices formajor agricultural inputs and outputs used in the analyses are shown inAnnex 2, Table 1. Economic prices for rice, soybean, maize, groundnuts and,fertilizers were based on world market price forecasts produced by the Bank'sCommodity Division, adjusted for transportation, processing and handling costto the farmgate level. The remaining inputs not traded on the internationalmarket have been expressed in terms of actual (farmgate) prices. The level of

subsidy or implicit taxation experienced by farmers is indicated by thedifference between financial and economic prices. For example, the economicprice of rice is about 30% higher than the financial price and subsidizedfinancial prices for fertilizer are less than half the economic farmgateprice. Despite the fact that the implicit taxation of paddy sales amountsbetween two and five times the subsidization of input purchases, few paddyfarmers are diverted from growing rice by GOI control of the rice price.

5.04 Financial costs have been converted to economic costs usinlg theconversion factors in Annex 2, Table 2. Agricultural labor has been priced at75% of its actual price due to the somewhat limited employment opportunitiesin the project area.

5.05 Foreign Exchange. In March 1983, GOI devalued the Rupiah by 28%from Rp 703 to Rp 970 = US$1.00. The resulting impact on domestic inflationand the prices of traded goods, while domestic prices adjust to the change,has been taken into account in the economic analysis. A standard conversionfactor of 1.0 has been used since the present exchange rate is considered toreflect the value to the economy of the foreign exchange used in constructingthe project and saved through increased grain production.

Economic Analysis of a Typical Kecil Scheme

5.06 Cropping Pattern and Yields. A review of experience of 980 kecilschemes completed with USAID assistance indicates that an average kecilirrigation scheme (serving about 400 ha), results in increased cropped areas,and wet and dry season yields as summarized in Table 5.1. At present, pro-duction in the dry season is negligible (annual cropping intensity 75%).

Table 5.1: AGRICULTURAL DEVELOPMENT AND CROPPING PATTERNS:

REPRESENTATIVE KECIL SCHEME (400 ha)

Present (1983) Future without Project (1990) Future with Project (1990)

Net economic Net economic Net economic

Area Yield benefits Area Yield benefits Area Yield benefits

(ha) (tons/ha) $'000 (ha) (tons/ha) $'000 (ha) (tons/ha) $'o00

Rainfed sawah rice

(wet season) 160 2.5 53.3 200 2.5 102.7 - - -

Upland rice (wet season) 25 1.5 6.1 25 1.5 8.86 - - -

Irrigated rice (wet season) - - - - - - 400 3.5 285.8

Irrigated rice (dry season) - - - - - 100 2.5 47.3

Maize (dry season) 80 1.0 6.08 80 1.0 7.8 80 1.2 6.8

Cassava (dry season) 50 12.0 12.9 60 12.0 15.42 - - -

Soy (dry season) - - - - - - 20 1.0 5.98

Cultivated areaWet season 185 59.4 225 111.56 400 285.8

Dry season 130 19.0 140 23.22 200 60.1

Total 305 78.4 365 134.8 600 345.9

(Uncleared land) 95 35 _

Cropping intensity 0.75 0.91 1.50

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Irrigation typically permits a reliable second crop of 100 ha paddy and 100ha palawija (dry season) crops,/22 doubling total cropping intensity to150%. Wet season paddy yields increase on average from about 2.5 tons/ha toabout 3.5 tons/ha, and the area planted to rice increases from 185 ha to 500ha. In the dry season, yields of 2.5 tons/ha are projected because of poorerwater supply. Maize yields iacrease slightly from 1.0 ton/ha to 1.2 tons/ha,but more importantly, an upgrading of crops from cassava to soybeans becomespossible. Annual rice production from a typical 400 ha scheme is expected toincrease from about 440 tons (wet season only) to about 1,650 tons (wet anddry season).

5.07 Construction and Land Development Schedule. Construction of theweir and main system of a typical scheme commences at the beginning of 1984/85and is completed at the end of 1985/86. Tertiary construction which alsoforms the drainage system /23 would commence in 1985/86, and finish at the endof 1986/87. It is estimated that land development would take four years,beginning in 1986/87 and ending in 1989/90. Full agricultural developmentwould be achieved in the eighth year of the scheme, in 1991. The scheme isassumed to have a life of 15 years. Annex 2, Table 3 presents a detailedexpenditure schedule.

5.08 Operation and Maintenance. Operation and maintenance (O&M)requirements are estimated to be Rp 12,000 per ha at full development.

5.09 Economic Rates of Return (ERR). Using the foregoing assumptions,the economic rate of return is estimated to be 32%. The flow of economiccosts and benefits over the project life is shown in Annex 2, Tables 4-6.

5.10 Impact of Production Changes. If there were insufficient water fora dry season irrigated rice crop each year /24 and the palawija crop wasunaffected, the ERR would fall to 24%. Similarly if insufficient waterdecreased rice yields in the wet and dry seasons to 3.0 tons/ha and 2.0tons/ha respectively, and yields on maize to 1.0 ton/ha, soy yield remainingunchanged, the ERR would fall to 18%. If the dry season rice crop was cut byhalf to 50 ha due to water constraints, the ERR would fall to 28%. Totalagricultural benefits could fall by about 32% for a crossover value associatedwith a 12% discount rate.

5.11 Impact of Delays. Delays in benefit buildup may result from slowland development or slow construction. If land development in a typical 400ha scheme is delayed by two years, and the construction period for tertiarycanals is also delayed by two years, full agricultural development would notbe achieved until 1993, the tenth year of the scheme, and the ERR would fallto 29%.

/22 This is a conservative estimate based on predicted water availability.

/23 Kecil schemes being small do not always possess separate drainagechannels for reuse of water.

/24 See para 3.14.

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5.12 Impact of Poor Maintenance. With poor maintenance, perhaps due toan O&M budget decreased by one third to Rp 8,000/ha, it is likely that 30% ofthe area would receive limited irrigation service. Assuming the impact ispredominantly on the rice crop, dry season yields would be expected to fall30% to 1.75 tons/ha. The wet season yields may also be affected, with onlyabout 70% of the area (280 ha) receiving good irrigation, the yield on theremaining 120 ha falling to an estimated 2.5 tons/ha. With these assumptions,the ERR would fall to 20%.

5.13 Impact of Cost Overruns. If costs were to increase by about 25%the ERR would fall to 13%.

Economic Analysis of Sedang Schemes

5.14 Cropping Pattern and Yields. The Mentawa scheme, to be constructedunder the project, is a typical sedang scheme. It lies largely within theToili transmigration area in Central Sulawesi. Of the 4,200 ha command area(4,000 ha irrigable area), 40% is currently under dryland cultivation.Current production is limited by low yielding local varieties, unreliablewater supply and poor cultivation techniques. The construction of a weir andirrigation distribution network on the Mentawa River would permit an expansionof the cultivated area, particularly in the dry season, and increase croppingintensity from 0.5 currently to 1.8 at full agricultural development. Thearea expansion results primarily from conversion of dry land and a small areaof forest, bush, and swamp to irrigated sawah. Annual rice production willincrease from 2,025 tons of upland rainfed rice to 18,160 tons at fulldevelopment. This increase, of about eight times, is due to the expansion ofcultivated area and an improvement in yields. For palawij-a crops, theimprovement in yields is not so substantial and the main production increaseresults from an expansion of the cultivated area indicated in the crop budgetspresented in Annex 2, Table 7. Land use changes and agricultural economicbenefits are shown in Table 5.2.

5.15 Construction and Land Devrelopment Schedule. ConstruLction of theweir, main drainage, and tertiary system will take four years and be completedby 1987/88. Land clearing and sawah formation is estimated to take five yearsand will be completed in 1990. Full agricultural development will be achievedfour years later, the eleventh year of the project. Development costs for theMentawa scheme are shown in Annex 2, Table 8; costs for a:Ll project schemesduring the project period are shown in Annex 1, Table 8.

5.16 Operation and Maintenance. Operation and maintenance (O&M) costshave been estimated at Rp 17,500/ha per year reflecting the more technicalnature of these irrigation schemes. The full sum will be incurred in 1994with full agricultural production. Equipment for O&M ($0.26 million) will bereplaced in 1996 after a life of ten years.

5.17 Economic Rate of Return (ERR). With the foregoing assumptions, andassuming a scheme life of 20 years, the ERR is estimated at 16% (Annex 2,Table 10).

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5.18 Impact of Production Changes. If water constraints completelyeliminated the dry season rice crop, other crops remaining unchanged, the ERRwould fall to 10%. If agricultural benefits are reduced by 20%, for instanceif the wet season rice crop yield is 3.0 tons/ha, and the dry season yield is2.5 tons/ha, the ERR would fall to 10%.

5.19 Impact of Delays. In this scheme, an extensive area requires landclearing and sawah formation./25 Although the initial assumption of fouryears for this is regarded as reasonable, the impact of delays on the schememust be estimated. If the buildup of benefits is delayed by another two yearsas the result of land development or construction delays, the ERR would fallto 14%.

5.20 Impact of Poor Maintenance. If it is assumed that O&M is notexecuted at an efficient level due to a 30% reduction in budgets, the areaserved by the scheme in the dry season would decrease proportionately.Assuming also that in the wet season only 70% of the area receives goodirrigation, the yield on the remaining 1,200 ha could fall to 2.5 tons/ha.Under these circumstances, the ERR would fall to 10%.

5.21 Impact of Cost Overruns. If total investment costs increase by 20%,the ERR falls to 13%.

Farm Incomes and Cost Recovery

5.22 The current Bank estimate of the absolute poverty line for ruralareas in Indonesia is $112 per capita per annum. Based on representative farmmodels, Table 5.3 shows that the majority of potential beneficiaries live onincomes below this. These are comparable to figures reflected in a rec:entBank review of transmigration sites./26 Incomes in the kecil schemes areexpected to almost double to $169 (Annex 2, Table 11). Incomes in sedangschemes even without the project are expected to rise by 110% due to thechange from upland rice to rainfed sawah, as a result of land conversion byfarmers, and an expansion in the area. The area for palawija crops alsoincreases, the area growing maize increasing from 360 ha to 1400 ha. With theproject, however, incomes in the sedang schemes are expected to rise muchmore, by an average of about 170% (to about $370), most of the increase beingdue to the project (Annex 2, Table 12).

/25 1,110 ha of forest and 1,450 ha of grassland require clearing and swahformation. 1,600 ha of upland will be converted to sawah.

/26 Indonesia Transmigration Program Review. Report No. 3170a-IND.

Table 5.2: AGRICULTURAL DEVELOPMENT AND CROPPING PATTERNS:REPRESENTATIVE SEDANG SCHEME (MENTAWA) /a

Present (1983) Future without Project (1995) Future with Project (1995)Net economic Net economic Net economic

Area Yield benefits Area Yield benefits Area Yield benefits(ha) (tons/ha) $'m (ha) (tons/ha) 'm (ha) (tons/ha) $'m

Upland rice (wet season) 1,350 1.5 .28 - -

Rainfed sawah (weL season) - - 25300 2.5 1.12 - - -

Irrigated sawah (wet season) - - - 4,000 3.5 2.57

irrioated sawah (drv season) - - - - - - 1,300 3.2 0.73

Maize 360 1.0 .01 1,400 1.0 o.12 1,400 1.2 0.08

Groundnut 300 0.7 .056 400 0.8 0.15 400 1.0 0.18

Soybean 120 0.6 .01 200 0.8 0.04 200 1.0 0.05 a

Cultivated area o

Wet season 1,350 .28 2,300 1.12 4,000 2.57

Dry season 780 .08 2,000 0.31 3,300 1.n4

Total 2,130 .36 4,300 1.43 7,300 3.61

(Uncultivated area) 2,650 1,700 _

Cropping intensity 0.53 1.01 1.83

/a Irrigable area 4,000 ha.

- 41 -

Table 5.3: NET FARM INCOMES(1983 US$)

Future FuturePresent without with Increment1983 /c project project $ X

KecilRepresentative family income(per capita) /b 68 85 169 84 98

Sedang /aRepresentative family income

(per capita) /b 65 137 370 233 170

/a Average farm size of 2.0 ha, including 0.25 ha house and garden lot(Mentawa).

/b Average family size of 5 persons./c See Indonesia Transmigration Program Review, Report No. 3170a-IND.

5.23 Indonesian farmers pay land taxes (IPEDA) and make contributions tovillage watermasters who are responsible for tertiary network operation andmaintenance. Project beneficiaries are expected to increase these annualpayments on average to about $22/ha per year in sedang schemes and to about$12.6/ha per year in kecil schemes with full project development (Annex 2,Tables 12 and 13). These payments, with all investment and O&M costsdiscounted at 10%, achieve complete O&M cost recovery and result in costrecovery indices of less than 6%. This level of cost recovery is consideredreasonable, because of the low incomes of project beneficiaries and from aequity viewpoint.

Risks

5.24 The major risks which may be encountered, and their likely impact,are discussed below.

(a) Delays in land development and coordination problems betweenirrigation construction and conversion of service areas will beminimized during the irrigation system's planning. Conservativeassumptions have been made for reaching full production (10 yearsafter construction starts) and even longer periods (a delay of 2years) would not reduce ERRs to unacceptable levels as detailed inparas. 5.11 and 5.19;

(b) Inadequate operation and maintenance standards are a cause forconcern throughout the irrigation sector and are addressed under theproject by (i) increasing O&M staffing and training; and (ii)involving farmers more closely in planning and design of their

- 42 -

irrigation systems. During negotiations agreements were reached tothis effect (para. 6.0I(gi, (h) and (i)). Poor (&M reduces thewater delivery and control effectiveness thus reducinag the irrigatedarea and rice yields. The kecil schemes have a high margin for suchrisks, since ERRs are about 32%. For the larger sedang schemes(ERRs about 16%), output reductions of up to 20% can be withstoodwithout jeopardizing their viability;

(c) Environmental Risks. New irrigation systems in Outer Islandlocations face the threat of continued forest clearing in catchmentareas, leading to reduced water deliveries in thes dry season;flooding during peak rainfall; damage to diversion structures;increased siltation; and reduced agricultural production, orincreased maintenance costs. Reduction of such risks requiresintervention by provincial forestry departments (undier existinglegislation) and is the subject of an agreement with GOI (see para.3.32); and

(d) Inadequate PRIS Staff Numbers and Delays in Training. Failure toappoint or recruit thes additional staff, or delays in training, willresult in reduced control over subproject selection, design andconstruction, diminishing the projected cost reductions and incre-mental benefits. While the institutional objectives will be jeopar--dized, the risks for the project construction are small because inthis event, DGWRD will continue to provide the functions, thoughless efficiently than the PRIS.

- 43 -

6. AGREEMENTS AND RECO'MMENDATION

Agreements Reached During Negotiations

6.01 During negotiations, agreements was reached with GOT on thefollowing:

(a) GOI will cause the Project to be carried out by DGFCA, DGWRDand each PRIS and DIPERTA with due diligence and efficiency andin conformity with appropriate agricultural, engineering andfinancial practices,and shall provide,promptly as needed, thefunds, facilities, staff, services and other resources requiredfor the purpose. (Draft Loan Agreement Section 3.01).

(b) GOI will cause DGWRD and each PRIS to (a) select, inconsultation with DGFCA and the relevant DIPERTA, keciL andsedang irrigation schemes under of the Project, in accordancewith criteria satisfactory to the Bank, and (b) design,supervise and certify construction of such selected schemes inaccordance with standards satisfactory to the Bank. (Draft Loanagreement Section 3.06).

(c) GOI will: (i) maintain records and procedures adequate torecord and monitor the progress of the Project (including itscost and the benefits to be derived from it), to identify thegoods and services financed out of the proceeds of the Loan,and to disclose their use in the Project; (ii) enable theBank's representatives to visit the facilities and constructionsites included in the Project and to examine the goods financedout of the proceeds of the Loan and any relevant records anddocuments; and (iii) furnish to the Bank at regular intervalsall such information as the Bank shall reasonably requestconcerning the Project, its cost and, where appropriate, thebenefits to be derived from it, the expenditure of the proceedsof the Loan and the goods and services financed out of suchproceeds. (Draft Loan Agreement Section 3.04).

(d) GOI will cause DGWRD to ensure that before kecil and sedangirrigation schemes are selected pursuant to the provisions of(a) above, farmers to be included in such schemes agree: (a) toparticipate in land development programs, (b) to participate inthe planning and design of tertiary networks under suchschemes, and (c) to form water user associations to, interalia, prepare operational procedures and operate and maintainsuch networks in accordance with appropriate irrigationpractices. (Draft Loan Agreement Section 3.07).

(e) GOI will ensure that the Project is carried out with due regardto ecological and environmental factors and shall review theneed for catchment protection for each sedang irrigation schemeto be constructed under the Project, and, based on such a

- 44 -

review, prepare and implement appropriate catchment protection,regreening, and reforestation measures. (Draft Loan AgreementSection 3.08).

(f) GOI will ensure that DGWRD and each PRIS

(i) maintain records adequate to reflect in accordance withconsistently maintained appropriate. accounting practicestheir operations and financial condition, including

separate accounts reflecting all expenditures on accountof which withdrawals are requested from the Loan Accounton the basis of statements of expenditure;

(ii) retain, until one year after the Cliosirig Date, allrecords (contracts, orders, invoices, bills, receiptsand other documents) evidencing the expenditures onaccount of which withdrawals are requested from the LoanAccount on the basis if statements of expenditure, andto enable the Banks representatives to examine suchrecords;

(iii) have their respective accounts and financial statements(balance sheets, statements of income and expenses andrelated stal:ements) for each fiscal year audited, inaccordance with appropriate auditing principlesconsistently applied, by independent auditors acceptableto the Bank:;

(iv) furnish to the Bank as soon as available, but in any

case not later than nine months after the end of eachsuch year, (A) certified copies of their respectivefinancial statements for such year as so audited, and

(B) the report of such audit by said auditors, of suchscope and in such detail as the Bank shall havereasonably requested, including, without limitation to

the foregoing, a separate opinion by said auditors: (A)on the separate accounts referred to in paragraph (i) ofthis Section; and (B) in respect of the expenditures andrecords referred to in paragraph (ii) of this Section,as to whether the proceeds of the Loan made available toit and withdrawn from the Loan Account on the basis ofstatements of expenditure have been used for the purposefor which they were provided; and (C) to furnish to theBank such other information concerning said accounts,financial statements, records and expenditures, as wellas the audits, as the Bank shall from time to time

reasonably request. (Draft Loan Agreement Section 4.02).

(g) GOI will cause all canals, tubewells, drains, structures,roads, equipment and other facilities rehabilitated or

constructed with the financial assistance of the Bank to be

adequately operated and maintained, in accordance with

- 45 -

agricultural, engineering, financial and public utilitypolicies and practices, and shall cause such action to be takento ensure the efficient use of the water made available by suchirrigation systems for agricultural development andoperations. (Draft Loan Agreement Section 4.03 (a))

(h) GOI will ensure that adequate staff are employed and fundsallocated and made available for the proper operation andmaintenance of the irrigation, drainage and road systemsreferred to under said paragraph (g). GOI shall: (i) by August15 in each fiscal year, make available to the organizations ordepartments charged with maintenance of any such system, anamount of liquid funds equal to not less than one-half of theamount budgeted for the operation and maintenance of any suchsystems in such fiscal year and shall make the balanceavailable in equal quarterly installments until all budgetedamounts have been made available; and (ii) take appropriatesteps to increase progressively the number of qualifiedoperation and maintenance staff employed by the organizationsand departments charged with operation and maintenane of thesaid systems until adequate staff levels established by theBorrower in consultation with the Bank have been attained bysuch organizations and departments. (Draft Loan AgreementSection 4.03 (b))

(i) GOI will inform the Bank by May 1 of each year: (i) of theapproved cost per hectare for operation and maintenance budgetsfor each such irrigation system; and (ii) of the staffprovisions for each such irrigation system. (Draft LoanAgreement Section 4.03 (c))

6.02 Condition of Loan Effectiveness would be that the contract forconsultants services required for training shall have been negotiated andapproved in accordance to the GOI s procedures for engaging consultants.

6.03 With the above assurances the project will be suitable for a Bankloan of $89 million with a 20-year maturity, including a grace period of 5years. The Borrower would be the Republic of Indonesia.

ANNEX ITable 1

- 46 -

SECOND PROVINCIAL IRIGATION DEVELOPMENT PROJECT

Summary Cost Estimate($ million)

Repelita IV Project time slLiceinvestment costs, costs,1984/85-1988/89 1984/85-1986/87

For- For-Component Local eign Total Local eign Total

Institutional Support for PRIS 2.4 2.3 4.7 2.4 2.3 4.7Facilities, equipment & vehicles 0.5 1.3 1.8 0.5 1.3 1.8Training 0.7 1.0 1.7 0.7 1.0 1.7Administration and staff overheads 1.2 - 1.2 1.2 - 1.2

Institutional Support tor DAAE in 8 Provinces 1.2 2.2 3.4 1.2 2.2 3.4Facilities, equipment & vehicles for ])AAD U.4 0.4 0.8 0.4 0.4 0.8Equipment for land clearing & water mgmt. 0.1 1.1 1.2 0.1 1.1 1.2

Training 0.5 0.7 1.2 0.5 0.7 1.2Administration 0.2 - 0.2 0.2 - 0.2

Kecil Scheme Construction in 8 Provinces /a 44.6 21.0 65.6 30.9 14.7 45.6Designs 0.6 - 0.6 0.2 - 0.2Construction /b 35.8 20.1 55.9 25.4 14.2 39.6Land development /c 5.1 0.9 6.0 3.1 0.5 3.6Land acquisition & administration 3.1 3.1 2.2 - 2.2

Sedang Scheme Construction in 4 Provinces /d 42.1 24.0 66.1 32.2 16.6 4L8.8Designs 1.4 - 1.4 1.4 - 1.4Construction /b 30.3 22.0 52.3 24.0 16.0 40.0Land development /c 5.5 1.0 6.5 3.5 0.6 4.1Land acquisition 1.7 - 1.7 1.0 - 1.0Administration & other 3.1 - 3.1 2.3 - 2.3

Consultants 1.5 3.0 4.5 1.5 3.0 4.5

Total Base Cost 92.1 52.5 144.6 68.2 38.8 107.0

Physical contingencies /e 9.2 5.3 14.5 6.8 3.9 10.7Expected price increases 37.0 13.0 50.0 22.2 8.3 30.5

Total Project Cost 138.3 70.8 209.1 97.2 51.0 148.2

Taxes on civil works 2.7 - 2.7 2.0 - 2.0Front-end fee - 0.2 0.2 - 0.2 0.2

Grand Total 141.0 71.0 212.0 99.2 51.2 150.4

/a Based on 50,000 ha net irrigable area./b Includes main systems and tertiaries./c Included in DAAD budgets./d Based on 6 projects with a net irrigable area of about 26,200 ha./e Estimated as 10% of local and foreign costs./f Based on estimated foreign cost inflation rates of 8.0%,7.5%, 7.0% and 6.0% in 1983,

1984, 1985, and thereafter; and local cost inflation rates of 20% annually in1983 and 15.0% in 1984, 11.0% in 1985, 7.0% thereafter.

ANNEX I- 47 - Table 2


Proposed Allocation of Loan Proceeds by Components(US$ million)

Net base cost Disburse-and expected Loan mentprice increases amount percentage

Institutional Support for PRISTraining 2.2 2.2 100Vehicles 0.4 - 0Equipment 0.7 0.5 65Buildings 0.8 0.8 100

Subtotal 4.1 3.5 -

Institutional Support for DAADTraining 1.5 - -Vehicles 0.4 --Equipment - Land clearing 0.6 - -

- Water management 0.5 - -Building 0.5 - -

Subtotal 3.5 - -

Kecil & Sedang SchemesConstructionDesign consultants 1.6 1.6 100Construction irrigationContracts above $0.2 million lOleO 75.8 75Contracts below $0.2 million 1.2 - -

Land development 9.9 - -

Subtotal 113.7 77.4 -

ConsultantsDOI/PRIS - Local 0.7 0.7 100

- Foreign 3.9 3.9 100DAAD - Local 0.7 - -

- Foreign 0.4 - -

Subtotal 5.7 4.6 100

Administration & LandAcquisitionDOI 7.6 - -DAAD 0.3 - -

Subtotal 7.9 - -

Front End Fee 0.2 0.2 100

Unallocated 13.3 3.3 -

Total /a 148.4 89.0 -

/a Excludes civil works taxes $2.0 million.

ANNEX 1Table 3

-48 -

INDONESIA


Estimate Schedule of Disbursements

IBRD fiscal Cumulative disbursementsyear end semester US$ million %

FY84Second 0.6

FY85First 8.3Second 20.7 23



FY88First 89.0Second - 100

- 49 - ANNEX 1Table 4

TNDONT0NE I


Consulting Services - Cost Breakdown /a(US $/man-month)

Expatriates Local consultantsForeign Local Total Foreign Local Total

Item currency currency cost currency currency cost

Billing RateBasic salary 3,300 - 3,300 - 830 830

Social benefits 890 - 890 - 190 190

Home office overhead 2,600 - 2,600 55 635 690Overseas allowance 930 - 930 - 220/b 220

Net fee 480 - 480 - 140 140

Subtotal 8,200 - 8,200 55 2,061 2,070

Reimbursable ExpensesMobilization and travelInternational travel 927 - 927 -

Relocation 525 - 525 - - -

Subsistence en route 80 - 80 - 40 40Miscellaneous 218 - 218 - 20 20

Subtotal 1,750 - 1,750 - 60 60

Duty Station ExpensesLocal duty travel 132 - 132 40 - 40Per diem - 184 184 - 55 55Field office overhead - 306 306 - 55 55

Housing and utilities 286 632 918 30 65 95Transport 510 - 510 125 - 125

Subtotal 928 1,122 2,050 195 175 370

Total 10,878 1,122 12,000/c 250 2,250 2,500/d

/a Based on recent contracts in mid-1983 prices. Portion of foreign and local cur-rency may vary.

/b Field allowance for local consultants./c May vary between $10,000 and $14,000 depending on nationality and experience./d Applies to engineers, senior agronomists, senior economists and senior

surveyors. Cost of junior professionals averages $1,500/man-month, draftsmen andcost of technicians averages $1,000/man-month.

ANNEX 1- 50 - Table 5

INDONESIA


Institutional Strengthening of PRIS and DOI

Cost; Estimates($'000)

Local Foreigncurrency currency Total

FacilitiesOffice buildings 280.0 180.0 460.0Office and drafting equipment: bU.0 240.0 30U.0

Subtotal 340.0 420.0 760.0

TrainingTraining 440.0 /4U.0 1,1180.0Materials and others 260.0 260.0 520.0

Subtotal 700.0 1,000.0 1,700.0

Special EquipmentSurvey - 120.0 120.0

Soil testing - 200.0 200.0Hydrology - 240.0 240.0

Water quality - 180.0 80.0

Subtotal - 640.0 640.0

VehiclesJeeps 100.0 200.0 300.0Motorcycles 50.0 5U.0 100.0

Subtotal 150.0 250.0 400.0

Administration and Staff Costs 1,200.0 - _ l200.0

Total 2.390.0 2,310,0 4,700.0

ANNEX 1Table 6

- 51 -

INDONESIA


Support for Agricultural Development for the Eight Provinces(US$ million)

Component Total cost 84/85 85/86

Office Buildings/FurnitureLand development 0.191 0.191 -Soil and water management 0.300 - 0.300

VehiclesLand development 0.313 0.313 -

Soil and water management 0.114 - 0.114

EquipmentLand development 0.630 0.630 -Soil and water management 0.506 - 0.506

Total 2.034 1.134 0.920

ANNEX 1

- 52 - Table7

INDONESIA

SECOND PROVINCIAL IlRRIGATION DEVELOPMENT 1PROJECT

Kecil: Construction Costs of Main System and Tertiaries(1984/85-1988/89)

Main Tertiary Main sys- TertiaryTotal system cost tem total total Totalarea per ha per ha cost cost Other/a cost

Province (ha) -… ---------- (million $) -------------------

Riau 4,300 860.0 360.0 3.70 1.55 0.20 5.45

Bengkulu 6,300 740.0 310.0 4.66 1.95 0.30 6.91

South Sumatera 2,100 740.0 310.0 1.55 0.65 0.10 2.30

West Sumatera 8,800 740.0 310.0 6.51 2.73 0.40 9.64

South Sulawesi 11,908 740.0 310.0 8.81 3.69 0.60 13.10

Central Sulawesi 3,800 740.0 310.0 2.81 1.18 0.40 4.39

Southeast Sulawesi 6,000 740.0 310.0 3.33 1.86 0.31 6.61

North Sulawesi 6,800 8:10.0 360.0 5.03 2.11 0.36 7.50

Total 50,000 37.51 15.72 2.67 55.90/b

/a Roads and O&M housing.

/b Three-year time slice is $33.6 million.

ANNEX 1-53 - Table 8

INDONESIA


Sedang Schemes Cost Phasing

Total costProjectTime Slice

Total Pre-Province/scheme cost project 1984/85 1985/86 1986/87 1987/88 1984/85 -

- - - - - - million $ - - - - - - - 1986/87

Bengkulu

Muko Muko 15,014.0 1,6/2.0 4,18b.0 3,929.0 3,786.0 1,443.0 11,901.0

Air Nipis 5,804.0 570.0 1,612.0 1,699.0 1,624.0 300.0 4,935.0

West Sumatera

Suliti 5,095.0 402.0 799.0 1,920.0 1,631.0 271.0 4,350.0

Inderapura /,820.0 1,648.0 2,086.0 2,300.0 1,643.0 143.0 6,029.0

South Sulawesi

Padang Sapa 16,811.0 1,471.0 4,983.0 4,85/.0 4,500.0 1,500.0 14,340.0

Central Sulawesi

Mentawa 8,712.0 511.0 2,774.0 2,676.0 1,781.0 968.0 7,231.0

Total 59,256.0 6,274.0 16,440.0 17,381.0 14,965.0 4,625.0 48,786.0

ANN9EX 1

Table 9- 54 -

INDONESIA


Land Development for Kecil

Area Cost of clearing andIrriga- land developmentt:ion Alang- Alang-

Province area Forest alang Forest alang Total--------- (ha) --------- ---- ($ million) ----

Riau 4.,300 430 645 0.277 0.305 0.582

Bengkulu 6,300 630 900 0.406 0.426 0.832

South Sumatera 2,100 200 315 0.129 0.149 0.278

West Sumatera 8.,800 - 2,200 - 1.041 1.041

South Sulawesi 9,508 - 2,400 - 1.135 1.135

Central Sulawesi 3.,800 - 950 - 0.449 0.449

Southeast Sulawesi 8.,400 - 2,000 - 0.946 0.946

North Sulawesi 6.,800 - 1,700 - 0.804 0.804

Total 50,000 1,260 11,110 0.812 5.255 6.067

-55- ANNEX 1Table 10

INDONESIA


Land Clearing and Sawah Formation tor Sedang

Area requiring landclearing, /a Land clearing

Net Shrubs Sawah Shrubs SawahProvince irrig. Forest alang- dev. alang- dev.(project) area /b alang Upland area Forest alang Upland area/c Total

--------------- (ha) --------------- ------------ ($ million) -------------

BengkuluMuko-Muko 6,735 600 2,/50 1,650 5,000 0.180 0.393 0.118 1.680 2.371Air Nipis 3,116 - 670 670 - - 0.048 0.221 0.269

West SumatraSuliti 1,481 - - 300 300 - - 0.021 0.099 0.120Inderapura 4,018 500 2,318 2,818 0.150 0.331 - 0.955 1.436

South SulawesiPadang Sapa 6,721 - 3/0 3/0 0.026 0.122 0.148

Central SulawesiMentawa 4,224 1,116 1,464 1,664 4,244 0.335 0.209 0.119 1.456 2.119

26,295 2,216 6,532 4,654 13,402 0.665 0.933 0.332 4.533 6.483

/a Estimates based on the reported land use tor 8 sample projects appraised by DPP.

/b Assumed to be 307. heavy and 70% light forest.

/c Including US$72.5/ha for Agraria survey and land titles.

ANNEX 156 - Table 11

INDONESIA


Vehicles and Equipment

VehiclesJeeps Motorcycles Total

Units Costs Units Costs($OOOs) ($000s)

SumateraWest Sumatera 2 25.C 4 8.0 33.0Riau 4 50.C 10 20.0 70.0Bengkulu 2 25.0 4 8.0 33.0South Sumatera 5 6/.5 4 8.0 10.5

SulawesiSouth Sulawesi 2 25.0 4 8.0 33.0SE Sulawesi 2 25.0 4 8.0 33.0Central Sulawesi 5 62.5 10 20.0 82.5North Sulawesi 2 25.0 10 20.0 45.0

Subtotal 24 300.0 50 100.0 400.O

Special Equipment /a

Number of Units

Hydrol- Water TotalOffice Survey Soils ogy Quality Cost

($000s)

SumateraWest Sumatera 0.5 0.5 1.0 1.0 1.0 100.0Riau 1.0 1.0 1.0 1.0 1.0 135.0Bengkulu U.5 - 1.0 1.0 1.0 9U.0South Sumatera 1.0 0.5 1.0 1.0 1.0 135.0

SulawesiSouth Sulawesi 0.5 U.5 1.0 1.0 1.0 10U.0SE Sulawesi 0.5 1.0 1.0 1.U 1.0 11U.0Central Sulawesi 1.0 1.5 1.0 1.0 1.0 145.0North Sulawesi 1.0 1.0 1.0 1.U 1.0 135.0

Subtotal 6.0 6.0 8.0 8.0 8.0 950.0

/a See Annex 1, Table 9 for details.

ANNEX I- 57 - Table 12

INDONESIA


Equipment for each PRIS

Nos. Unit Cost Total Cost… - - $000s - -

1. Office & Drafting Equipment

Typewriters 2 1.8 3.6Copying machines 1 5.0 5.0Plan printing machines 1 15.0 15.0Duplicator 1 2.0 2.0Drafting machines 10 2.0 20.0Miscellaneous (calculators, etc.) 25 - 4.4

Total 50.02. Survey Equipment

Level 3 2.0 6.0Theodolites 2 5.0 10.0Miscellaneous (tapes, rods, etc.) 25 - 4.0

Total 20.0

3. Soil Testing

C.B.R. Laboratory equipment 1 3.5 3.5Soil sampling 1 1.0 1.0Compactor moulds 1 1.0 1.0Sieve shaker (electric) 1 1.5 1.5Sand cone apparatus 6 0.2 1.2Hand auger 5 0.2 1.0Core Panetrometer 1 3.5 3.5Proving ring penetrometer 1 1.5 1.5Balamer 2 1.8 3.6Unconfined compression test 1 3.3 3.3Ovens 2 0.5 1.0Standard Proctor Density 4 0.5 2.0

Total 25.04. Hydrology

Current meters 2 4.0 8.0Sediment samples 1 5.0 5.0Rain gauge - charts etc. 1 lot 2.0 2.0Electric s 2 0.5 1.0Meterological station 1 14.0 14.0

Total 30.0

5. Water Quality

Field kit 2 2.0 4.0Salinity meters & recorders 2 1.0 2.0Miscellaneous equipment 1 lot - 4.0

Total 10.0

ANNEX 1Table 13

- 58 -

INDONESIA

SECOND PROVINCIAL IRRIGATION DEVELOPMENT PROJECT'

Training PRIS

Man-days Unit cost Cost('000) ($/day) ($'000)

Diklat CoursesTechnician man-days training 44.58 7 312.0Engineers 6.49 12 78.0

Subtotal 390.0

Consultant CoursesTravel per diem 24.64 32 790.0Training materials 24.64 21 520.0

Subtotal 1310.0

Total Training Costs 1700.0

Staff and Administration

Costs per yr. Costs per 3 yrs.Staff costs Number ($'000) ($'000)

IR's 67 1.85 372BIE's 106 0.92 294STM's 279 0.43 360

1,026

Administration

Transport, consumables, etc. L.S./a - 200

Total Administration and Staff 1,226


INDONESIA


Training DAAD

No ot l'otal Total No. Cost Per Diem Trips Costs M$000'sStudents trips of Student Per costs Per diem Miscel. Total

days Trip

A. Training Costs

Water ManagementI PPS (W&M)/a 20 20 1400 300.0 30 b.0 42.0 2.0 50.0II PPS 114 114 6384 150.0 30 1/.1 191.5 2.4 122.0

III PPM 228 228 4/88 150.0 20 34.2 95.8 3.0 133.0IV PPL 4/6 4/6 6664 50.0 20 23.8 133.3 2.9 160.0

Subtotal 554.0

Land DevelopmentI UPP Chiefs 64 64 896 300.0 30 19.2 26.8 2.0 48.0

II UPP (Prof.) 20 20 560 150.0 30 0.6 17.0 2.4 20.0III UPP Techicians 170 170 2380 150.0 20 25.5 47.5 3.0 76.0

IV UPP Field Staff 180 180 5040 50.0 20 9.0 100.0 3.0 113.0

Subtotal 257.0

B. Training Materials

Water Management (126000 pages Rp 2000/page + processing & binding) 210.0

Land Development (62000 pages ( Rp 2000/page + processing & binding) 110.0

C. Administration& Evaluation

Water ManagementTrips (29 courses at $1000/course) 30.0

Per diem (2 ofticers x 97 days x $.30/day) 6.0

Admin. & Eval. (2 officers x 97 days x $.30/day) 6.0

Land DevelopmentTrip, etc. - ditto - 62.0

Subtotal 104.0

Total

/a PPS with water management specialization.

ANNEX 1Table 15

- 60 -

INDONESIA


Consultants

Man-months Unit rate Costs…- $000's

Training

PRIS - Foreign 250 12.0 3,000.0

- Local 220 2.5 550.0

DAAE - Foreign 32 12.0 380.0

- Local 224 2.5 560.0

Total 726 4,490.0

ANNEX ITable 16

- 61 -

INDONESIA


Equipment/Facilities and Vehicles for Land Clearing,Land Development and UPP Field Office Buildings

ProvinceSouth- Cen-

West South South east tral NorthBeng- Suma- Suma- Sula- Sula- Sula- Sula-

Riau kulu tera tera wesi wesi wesi wesi Total

UPP Unit OfficeBuilding office with livingquarters and furnitures(70 sq m) 2 1 2 2 2 2 2 2 15

Set of office equipment suchas manual typewriters,filing cabinets, mimeomachine, puncher, stapler,white board, etc. 2 1 2 2 2 2 2 2 15

Generator (10 KVA) 2 1 2 2 2 2 2 2 15

Survey and Land Development,Design and Supervision Equip-nientPlane table 4 2 4 4 4 4 4 4 30Theodolite (T2) 2 1 2 2 2 2 2 2 15Steel tape (20 m) 10 5 10 10 10 10 10 10 75Drafting table and set 2 1 2 2 2 2 2 2 15Planimeter 6 3 6 6 6 6 6 6 45Pantograph 2 1 2 2 2 2 2 2 15Abney hand level 10 5 10 10 10 10 10 10 75Calculator 10 5 10 10 10 10 10 10 75pH meter 2 1 2 2 2 2 2 2 15Portable tent 2 1 2 2 2 2 2 2 15Altimeter 2 1 2 2 2 2 2 2 15

Construction EquipmentPower chain saw 3 1 1 1 I 2 1 - 10Winch - 2-ton capacity 2 1 1 1 1 2 1 - 9Crane - 5-ton capacity 2 1 1 1 1 2 1 - 9Set of hand tools, axes, 2 1 1 1 1 2 1 - 9etc.

Bull horn, 4 units/set 2 1 1 1 1 2 1 - 9Generator, 2 KVA (portable) 2 1 1 1 1 2 1 - 9

VehiclesJeep (long chassis) 2 1 1 1 1 2 1 - 9Motorcycles 10 5 5 5 5 10 5 - 45

ANNEX 1Table 17

- 62 -

INDONESIA


Summary of Equipm nt/Facilities in SuppOIt ofLand Clearing and Land Development

Project site Province Total

BuildingsOffices and quarters with furnitures (sq m) 1,050 128 1,1.78

Work Sheds (sq m) 160 - 1]60

Office EquipmentFiling cabinets 30 1 31Slide projector - 1 1Overhead projector - 1 1Manual typewriter 15 1 16Mimeographing machine (manual) 15 - 15Sets of punchers, staplers, etc. 15 1 16Generators, 10 KVA 15 - 15Drafting table and set 15 1 16Calculators 75 - 75

VehiclesJeep 9 - 10Motorcycles 45 - 45

Survey, Design and Construction SupervisionEquipment

Plane tables alidade 30 - 30Theodolite (T2) with level rod 15 - 15Steel tapes (20 m) 75 - 75Planimeters 45 - 45Pantograph 15 - 15Abney hand level 75 - 75pH meter 15 - 15Altimeter 15 - 15Portable field tents 15 - 15

Land Clearing EquipmentPower chain saw 10 - 10Winch - 2-ton 9 - 9Crane - 5-ton 9 - 9Set of hand tools 9 - 9Bull horn 36 - 36Generator, 2 KVA, portable 9 - 9

ANNEX 1Table 18

- 63 -

INDONESIA


Equipment/Facilities/Vehicies for Water Management

Pilot areas Provinces Total

Office and Housing UnitOffice building and furniture (30 sq mlpilot area) 240 128 368

Housing for staff and consultants (150 sq m) 1,200 - 1,200Work shed and equpment storage (50 sq m) 400 - 400Set of equipmentFiling cabinet 8 8 16Manual typewriter 8 8 16Slide projector, screen, white board 8 - 8Puncher, staplers, etc. 8 8 16Generator, 10 KVA 8 - 8

Equipment for Pilot Farm OperationsSoil and water properties testing

instruments (set) 8 - 8Water metering and control (set) 8 - 8Hand tractors (5-75 hp), 4/pilot farm 36 - 36Sprayers, 8 sets/pilot farm 64 - 64Hand weeder (manual), 20/pilot farm 160 - 160Threshers, 7-10 hp, drum type 8 - 8Hand tools (fork, shovel, axes, etc.)(set) 8 - 8Hand tools for equipment repair (set) 8 - 8

VehiclesJeep, 1/pilot farm 8 - 8Motorcycles, 3/pilot farm 24 - 24

Additional Equipment and Facilities for PPL,PPM and Farmers' Training

Mimeographing machine 8 - 8

Instruction materials including graphicillustrations, slide sets, etc. (set) 8 - 8

Working sheds with tools and benches(20 sq m area) 8 - 8

ANNEX 2Table 1

-64 - Page 1 of 3

INDONESIA


Price Structures for Agricultural Output(End-1983 US$ currency values)

Operation 1983 1990 1995

RiceExport price, Thai 5% broken, FOB Bang-kok, US$/ton /a 327 455 447

Quality adjustment /b 90% 294 410 402Freight and insurance /c + 30 30 30CIF Outer Islands = 324 440 432Port handling, storage and losses Id + 25 25 25Transfer port to wholesalers + 3 3 3Transfer mill to wholesaler - 2 2 2Ex-mill price, = 350 466 458Conversion to paddy /e 65% 227 303 298Milling cost /f - 7 7 7Paddy transport, farm to wholesaler /g - 20 20 20Paddy transport, wholesaler to mill - 3 3 3Economic farm-gate price, US$/ton = 197 273 268Economic farm-gate price, Rp/kg Ih - 192 265 259(Financial farm-gate price, Rp/kg) = (150) (207) (259)

Soybean /iExport price, FOB US Gulf port i 230 371 341Freight and insurance, US Gulf to Outer + 35 35 35

IslandsCIF Outer Islands = 265 406 376Port handling and storage + 15 15 15Bagging + 10 10 10Transport, port to wholesalers + 4 4 4Transport, marketing, farmer to wholesalers - 20 20 20Economic farm-gate price, US$/ton = 274 415 385Economic farm-gate price, Rp/kg 'h = 266 403 373(Financial farm-gate price, Rp/kg) = (300) (350) (350)

MaizeExport price, FOB US Gulf port, US$/ton 129 152 152Adjusted export price, FOB Outer Islands /k + 15 15 15Port handling - 10 10 10Paddy transport, farm to wholesaler and

transfer to port /1 - 20 20 20Economic farm-gate price, US$/ton - 114 137 137Economic farm-gate price, Rp/kg = 111 133 133(Financial farm-gate price, Rp/kg) = (105) (133) (133)

Groundnuts /mExport price, any origin, shellecl,CIF Europe 395 640 622

Freight and insurance surcharge + 25 25 25CIF Outer Islands = 430 665 647Port handling and storage costs + 10 10 10Transport to wholesalers + 4 4 4Transport, handling, farmer to wholesaler - 20 20 20Economic farm-gate price, US$/ton = 422 659 641Economic farm-gate price, Rp/kg = 409 639 622(Financial farm-gate price, Rp/kg) = (500) (600) (600)

- 65 -ANNEX 2Table IPage 2 of 3

Operation 1983 1990 1995

UreaWorld export price, FOB Europe, US$/ton 200 284 294Ex-factory price, Palembang /n 215 299 309Transport, handling to retail + 11 11 11Storage and transfer to farms + 4 4 4Economic farm-gate price, US$/ton = 230 314 324Economic farm-gate price, Rp/kg = 223 305 314(Financial farm-gate price, Rp/kg) = (90) (120) (150)

TSPWorld export price, FOB US Gulf port,

US$/ton 172 209 209Freight and insurance to Palembang + 34 34 34Port handling and distribution to retail

level + 11 11 11Transfer to farm + 4 4 4Economic farm-gate price, US$/ton = 221 258 258Lconomic farm-gate price, Rp/kg = 214 250 250(Financial farm-gate price, Rplkg) = (90) (120) (150)

InsecticideEconomic farm-gate price, US$/liter 10.0 10.0 10.0Economic farm-gate price, Rp/liter 9,700 9,700 9,700(Financial farm-gate price, Rp/liter) /o (2,400) (4,140) (4,140)

RodenticideEconomic farm-gate price, US$/ton 6.7 t.7 b.7Economic farm-gate price, Rp/kg /h 6,499 6,499 6,499(Financial farm-gate price, Rp/kg) /o (2,760) (3,870) (3,870)

Purchtased Seeds ftRice /q

Economic farm-gate price, US$/ton 0.20 0.27 0.27Economic farm-gate price, Rp/kg 190 262 262(Financial farm-gate price, Rp/kg) /o (240) (288) (331)

SoybeanEconomic farm-gate price, US$/ton 0.27 0.41 0.41Economic farm-gate price, Rp/kg 265 400 375(Financial farm-gate price, Rp/kg) /o (360) (483) (483)

AaizeEconomic farm-gate price, US$/ton 0.11 0.14 0.14Economic farm-gate price, Rp/kg 107 136 136(Financial farm-gate price, Rp/kg) /o (150) (180) (207)

Groundnuts /oEconomic farm-gate price, US$/ton 0.41 0.66 0.64Economic farm-gate price, Rp/kg 400 640 625(Financial farm-gate price, Rp/kg) (400) (650) (650)

- 66 - ANLiEX 2

Table 1Page 3 of 3

/a All world prices are based on Bank projections with adjustment to mid-1983constant dollars by an (MUV) index of 1UO%, 100.5% and 107.0% for 1981, 1982and 19d3 respectively.

/b 90/ of world price based on spot checks and regressions. See paper IBRD/AiPiA 1979.

/c kates (end-1982) are approximately US$15/ton freight charges and US$15/toninsurance and other costs. Source: BULOG.

/d Source BULUG. Includes port costs, transport to warehouse, spraying andfumigation, unloading, warehouse rents. losses are 0.5% at unloading and1.0% at the warehouse. [These costs are based on predevaluation estimates,February 19b03.

/e Improvements in milling technology have resulted in an increased conversionrate from 63Xo to b5%. For a detailed discussion, see Leon A. Mears, "TheNew Rice Economiy of Indonesia," Gajah Mada University Press, 1981, pp. 486--4b7.

/f Net of value of byproducts and including milling/storage losses incurred bythe miller and handling charges.

/g Includes cleaning and drying before milling. iosses are assumed to be 5%and other costs amount to Rp 7,1UOO/ton of farm-gate gabah.

/h Converted at an estimated exchange rate of Rp 970 = US$1.00

/i Surplus project area soybeans would be sold within the prov:Lnce.

fj Equal to standard price, CIF Rotterdam, minus $20/ton freight and insurancefrom Gulf port to Rotterdam.

/k Assuming Indonesia is a net exporter of corn, the export price (FOB Palem-bang) is estimated at world market price plus a US$15 transport premium.

/1 Includes physical losses, storage and packaging.

/m Surplus project area groundnuts would be sold within the province.

In Urea is valued ex-PUSRI plant, Palembang. Price projections for baggedurea, Fu6 turope, have been adjusted to Asian markets by adding a transportpremium of US>15/ton.

/o Assuming that the devaluation results in a price change of only 20% by 1990and 3b% by 1995, since theses ares officially controlled prices and unlikelyto initially rise by the full amaount of the devaluation.

/p The economic price of seed is equivalent to the econamic farm-gate price oftne products, assuming that with the project, increased area and productionof seed will be at the cost of either imports or exports of the relevantproducts. A covenant in the IBLD Seeds II project requests GOI to raise theofficial price of seeds to cover full production costs. The average pricedifferential between rice seed and grain (extension seed quaLlity or lower)is about 50% and about 30% for palawija (See seeds II, for cletails).

/q NO distinction is made between traditional and high-yield variety seeds.

ANNEX 2Table 2

INDONESIA


Economic Conversion Factors

Coefficient used to convertItem of cost financial into economic values

Design, survey 0.90

Administration 0.90

Access roads 0.71

Weir 0.71

Irrigation system 0.71

Drainage system 0.71

Farm labor 0.75

Unskilled off-farm labor 0.75

Sawah formation 0.80

Land clearing 0.80

Operation and maintenance 0.80

Note: The differences between coefficients is mainly a reflection of differen-ces in the transfer payments and unskilled labor components of financialvalues.

INDONESIA


Total Cost and Distribution of Expenditure of a

Typical Kecil Scheme (400 ha)(US$'000)

Cost item Total 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92

Design 12 12 - - - - - - - -

W eir 1 LU - 1U+ 16 -

Main system 192 - 40 152 -- - - - -

TeriarTy verainage 144 - - 80 64 - - - -Drainage(

Land development /a 104 - - - 35 35 24 10 - -

Total 572 12 144 248 99 35 24 10 - - 3

Physical contingency /b 85.80 1.80 21.60 37.20 14.90 5.30 3.60 1.50 - -Price contingency /c 205.64 1.032 33.66 90.34 46.02 20.02 16.45 8.06 - -

Total Capital Costs 863.43 14.83 199.26 375.53 159.90 60.33 44.05 19.56 - -

ODeration & maintenance Id - - - 0.824 1=65 2 47 3=30 A-2 49A5 Q149

/a Includes access roads and some farm roads. The Government supports land development on 50% of thearea, farmers carrying out the remainder.

/b 15% capital costs./c Based on estimated foreign cost inflation rates of 8% in 1983, 7.5% in 1984, 7% in 1985 and 6%

thereafter and local cost inflation rates of 20% in 1983, 15% in 1984, 11% in 1985 and 7%thereafter.

/d O&M is set at Rp 12,000/ha/year. -'31


INDONESIA


Land Use and Benefits Summary - Typical Kecil Scheme

Yield Net economic benefitsArea (tons Rp '000 Total

Crop (ha) /ha) /ha Rp mln

PresentRainfed Sawah Rice (wet season) 160 2.5 323.45 51.70Upland Rice (wet season) 25 1.5 236.65 5.92

Palawija (Dry Season)Maize 80 1.0 73.74 5.90Cassava 50 12.0 249.30 12.50

Subtotal wet season 185 - - 57.62

Subtotal dry season 130 - - 18.40

Total 305 - - 76.02

Cropping intensity 0.75 - - -

iFuture Without ProjectRainfed Sawah Rice (wet season) 200 2.5 497.90 99.60Upland Rice (wet season) 25 1.5 343.50 8.60

Palawija (Dry Season)Maize 80 1.0 94.80 7.60Cassava 60 12.0 249.30 14.96



Total 365 - - 130.76


Future With ProjectIrrigated Sawah Rice (wet season) 400 3.5 693.20 277.28Irrigated Sawah Rice (dry season) 100 2.5 459.80 45.90

Palawija (Dry Season)Soy 20 1.0 289.30 5.80Maize 80 1.2 82.12 6.60



Total 600 - - 335.60


INDONESIA


(Typical Kecil Scheme)

Present (1983) Crop Buigets

Rainfed Sawah (ws) Upland Rice (ws) Palawija - Maize (ds) Cassava (ds)Unit cost Cost Unit cost Cost Unit cost Cost Un

4t cost Co st

Qty. Finan- Eco- Finan- Eco- Qty. Finan- Eco- Finan- Eco- Qty. Finar- Eco- Finan- Eco- Qty. Finan- Eco- Finanr- Eco-Inputs per cial nomic cial nomic per cial nomic cial nomic per cial nomic cial nomic per cial nomic cial nomic

h … … R … … ha …-------- Rp - ----------- ha ------------ Rp -- --------- ha ------------ Rp - -----------

Seed (kg) 30 240 190 7,200 5,700 40 240 190 9,600 7,600 30 150 107 4,500 3,210 1.25/b 2,100 2,100 2,625 2,625

FertilizerUrea (kg) 50 90 223 4,500 11,150 - - - - - - - - - -TSP/KCL (kg) 50 90 214 4,500 10,700 - - - - - - - - - - _ _ _ _ _

ChemicalsInsecticide 2 2,400 9,700 4,8no 19,400 - - - - - - - - - -

Fung,cide 1 2,400 9,700 2,400 9,700 - - - - - - - - - -

Rodenticide 2 2,760 6,4499 5, 520 12,998 - - - - - - - - - -

Labor (Mandays) /aLand prep/ H 5 - - - - 0 - - - - 0 - - - - 0 - -

nursery T 24 - 1,125 - 27,000 22 - 1,125 - 24,750 12 - 1,125 - 13,500 10 - 1,125 - -Transplant- n 10 - - - - - - - - 0 - - - - 0 - - - 11,250

ting T 26 - 850 - 22,100 - - 850 - - 0 - 850 - - 13/c - 850 - - cCultural H 0 - - - - - - - - - 0 - - - - 0 - - - 11,050

practices T 12 - 650 - 7,800 5 - 650 - 3,25r) 12 - 6540 - 7,800 5 - 650 - -

Harvesting H 5 - - - 3 - - - - 0 - - - - - - - 3,250T 15 - 750 - 11,250 12 - 750 - 9,000 7 - 750 - 5,250 30 - 750 - -

Postharvest R 5 - - - 0 - - - - 0 - - - - - - - 22,500operations T 25 - 750 - 18,750 9 - 750 - 6,750 10 - 750 - 7,500 0 - 750 - -

Subtotal H 25 - - - - - - - - 0 - - - - 0 - -T 102 1,125 - 28,125 89,900 48 1,125 - 3,375 43,750 41 1,125 - - 34,050 58 1,125 - - '

Total 43,050InputCostsPer Ha - - - 57;045 156;548 - - - 12,975 5,350 - - - 4,500 37,260 - - - 2,625 50,615

Yield (tons/ha) 2.5 - - - - 1.5 - - - -1.0 - _- - 12 25 25 - -

Revenue - 150 192 375,000 480,000 - 150 192 225,000 288, 000 - 105 111 105,000 111,000 - - - 300,000 300,000Net revenue/ha - - - 317,955 323,452 - - - 212,025 236,650 - - - 100,500 73,740 - - - 297,375 249,325

/a Assume no restriction of labor supply. Assume no working capital./b Cuttings - tons/ha. ' a tT7 Planting. m

o 0

TNDONESIA

S'ECOND PROVINCIAL IRRIGA"ION DEVEL9PMENT PROJECT

(Typical Kecil S'heme)

Future Without Pro ect (1990) /a

Rafnfed Sawah Rice (ws) Upland Rice (ws) Maize (ds) Cassava ( s)

Unit cost Cost Dnit cost Cost Unit cost Cost Unit cost Co st

Qty. Finan- Eco- Finan- Eco- Qty. Finan- Eco- Finan- Eco- Qty. Finan- Eco- Finan- Eco- Qty. Finan- Eco- inan- Eco-

Inputs per cial nomic cial nomic per cial nomic cial nomic per cial nom 2 cial nomic per cial nomic cial nomic

ha ------------- Rp ------------- ha ------------- Rp ------------ ha ------------- Rp ------------ ha --------- Rp -------------

Seed (kg) 30 288 262 9,640 7,860 40 288 262 11,52f0 10,430 30 180 136 5,400 4,080 1.25/b 2,100 2,100 2,625 2,625

FertilizerUrea (kg) 50 120 305 6,000 15,250 - - - - - - - - - - - - - - -

TSP/KCL (kg) 50 120 250 6,000 12,500 - - - - - - - - - - - - - - -

ChemicalsInsecticide 2 4,140 9,700 8,28n 19,400 - - - - - - - - - - - - - - -

Funs3icl,le 1 4,140 9,700 4,140 9,700 - - - - - - - - - - - - - - -

Rodenticide 2 3,970 6,4O) 7,740 17,998 - - - - - - - - - - - - - - -

Labor (M"ndays) /aLand prep/ 11 5 - - - 0 - - - - 0 - - - - 0 - - - -

nursery T 24 - 1,125 - 27,000 22 - 1,125 - 24,750 12 - 1,125 - 13,500 10 - 1,125 - 11,250 I

Transplant- J 10 - - - - - - - - - 0 - - - - U - - - -

itng T 26 - 850 - 22,100 - - 350 - - 0 - 350 - - 13/c - 850 - 11,050

Cultural 11 0 - - - - - - - - 0 - - - - - - -

practices T 12 - 650 - 7,800 5 - 650 - 3,250 12 - 6540 - 7,800 5 - 650 - 3,250

Ilarvesting H 5 - - - - 3 - - - - 0 - - - - - - - -

T 15 - 750 - 11,250 17 - 750 - 9,000 7 - 750 - 5,250 30 - 750 - 22,500

Postharvest H 5 - - - 0 - - - - 0 - - - - - - - -

operations T 25 - 750 - 13,750 9 - 750 - 6,525 10 - 750 - 7,500 0 - 750 -

Snhtotal E 25 - - - - - - - - - 0 - - - - 0 - - -

T 102 1,125 - 28,125 86,900 48 1,125 - 3,375 43,525 41 1,125 - - 34,150 58 1,125 - - 48,050

TotalInputCostsper Ha - - - 69,9 2 164,608 - - 14,895 54,005 - - - 5,400 38,230 - - - 2,625 50,675

Yield (tons/ha) 2.5 - - - - 1.5 - - - - 1.0 - - - - 12 - - -

R2venue - 207 265 517,500 662,500 - 207 265 310,500 397,500 - 133 133 133,000 133,000 - 25 25 300,000 300,000

Net reorenue/ha - - - 447,575 497,892 - _ - 295,605 343,495 - _ - 127,600 94,770 - - - 297,375 249,325

/a Note shorter development period than sedang kecil. projects.

Th Cassava cuittings - tons/ha.

'c Planting.

0

INDON -S IA

SECOND PROVI ICIAL IRRIGATI 10 DEVELOPMENT PROJECT(Typical Kecil Scherme)

Future tlith Prolect (1990)

Rainfed Sawah Rice (ws) Irrigated Sawah Rice (ds) Palawija -Soy (ds) Palawija - Miize (ds)Unit cost Cost Unit cost Cost Unit cost Cost Unit cost Co St

Qty. Finan- Eco- Finan- Eco- Qty. Finan- Eco Finan- Eco- Qty. Finan- Eco- Finaii- Eco- Qty. Finan- Eco- Finan- Eco-Inputs per cial nomir cial nonic per cial nomic cial nomic per cial nomIc cial unmlic per cia

lnolic cial nouilc

ha ------------- RR - ----- ha ------------- -- …p ---------- ha ------------- 1 …P ------------ Ila -------------- Rp -------------

Seed (kg) 25 288 262 7,20( 6,550 25 288 262 7,200 6,550 40 433 400 19,320 16,000 30 130 136 5,400 4,080

FertilizerUrea (kg) 180 120 305 21,60( 54,900 150 120 305 18,000 45,750 50 120 305 6,000 15,250 50 120 305 6,000 15,250TSP/KCL (kg) 100 120 250 12,000 25,000 75 120 250 9,000 18,750 - - - - - - _ _ _ _

ChemicalsInsecticide 3 4,140 9,700 12,440 29,100 2 4,140 9,708 8,280 19,400 2 4,140 9,700 8,280 19,400 1 4,140 9,700 4,140 9,700Pungict4e 1 4,140 3,700 4,140 9,700 1 4,140 9,700 4,140 Q,700 Rolenticide 2 3,870 6,499 7,74( 12.998 1 3 870 6 4959 387 6, 499 - - -- - - _ _

Labor (Mandays)

La.a prep/ HI 5 - - - - - - - - 5 - - - 3 - - -nursery T 24 - 1,1'5 - 27,000 24 - 1,125 - 27,000 15 - 1,125 - 16,875 12 - 1,125 - 13,500

Transplant- 1 10 - - - - 10 - - - - 0 - - - - 5 - - --lng T 26 - 850 - 22,100 26 - 25' - 22, 1O 12/a - 850 - 10,200 12/a - 8 -O 10,200

Cuiltural H 0 - - - - 0 - - - - 0 - - - -°practices T 18 - 650 - 11,700 18 - 650 - 11,700 15 - 650 -°,750 15 - 650 - 9,750

'larvesting 11 10 - - - - 10 - - - - 3 - - - - 0 - -T 18 - 750 - 13,500 18 - 750 - 13,500 25 - 750 - 13,750 10 - 750 - 7,500

Postharvest tl 7 - - - - 7 - - - - 0 - - - - 0 - -operations T 29 - 750 - 21,750 29 - 750 - 21,750 10 - 750 - 7,500 10 - 750 - 7,500

Subtotal i 32 - - - - 32 - - - 13 - - - 8 - -T 115 1,125 - 39,375 36,100 115 1,125 - 39,375 96,100 77 1,125 - 14,625 63,075 59 1,125 - 9,000 48,450

TotalInputCos t ;per Ha - - - 104,475 234,298 - - - 36,165 202,699 - - - 43,225 113,725 - - - 24,541 77,480

Yield (tons/ha) 3.5 - - - - 2 - - - - 1.0 - - - - 1.2 133 133 - -Revenue/ha - 207 765 724,500 927,500 - 207 265 517,500 662,500 - 350 401 350,000 403,000 - - - 159,600 159,600elet revenuie/ha - - - 620,025 693,202 - - - 431,335 459,801 - - - 301,775 289,275 - - - 135,060 32, 120

/a Planting.

O~ -1 a

- 73 -

,ANEX 2Table 6

INDONESIA


Typical Kecil Scheme - Economic Costs and Benefits /a(1983 US$'000)

IncrementalLand Total Total agricul-

Construc- devel- capital economic tural NetYear tion /b opment costs O&M costs /c benefits benefits

End 1983 (0) 9.6 - 9.6 - 11.04 - -11.041984 (1) 102.24 - 102.24 - 119.52 26.39 -93.131985 (2) 176.08 - 176.08 0.66 213.90 52.80 -161.101986 (3) 45.44 28.0 73.44 1.32 89.66 79.10 -10.561987 (4) - 28.0 28.00 1.98 35.28 105.60 +70.321988 (5) - 19.2 14.20 2.64 25.44 131.95 +106.511989 (6) - 8.0 8.00 3.30 12.80 158.30 +145.501990 (7) - - - 3.96 3.96 184.75 +180.791991 (8) - - - 3.96 3.96 211.10 +207.141992 (9) - - - 3.96 3.96 211.10 +207.141993 (10) - - - 3.96 3.96 211.10 +207.141994 (11) - - - 3.96 3.96 211.10 +207.141995 (12) - - - 3.96 3.96 211.10 +207.141996 (13) - - - 3.96 3.96 211.10 +207.141997 (14) - - - 3.96 3.96 211.10 +207.14

Total 423.36 83.2 416.56 41.58 539.32 2,216.59 1,677.15

ERR = 32%

/a Converted using conversion factors of 0.71 for construction and 0.8 fordesign, O&M and land development.

lb Includes design costs.

/c Includes physical contingency.

/d Life of scheme is 15 years.

INDONESIA

SECOND PROV1NCIAL IRRIGATION DEIELVPE4ENT PROJECT

Crop rBdgnt - Menta

Present, 1983

Upland rice wet .e.n.. Pla..tja - Mel-e (da) _ .ro..dnt (da) Soybean (dr)Qty. Unit cont Cost/ha Qty. aUnt cont Cott/ha Oty. Unittenot Cet/ho Qty. -alt cent Cent/haper Fynetil Et-nentc Financial Eonoentc, per Ftnanctal cnoenec Ftnanctal Eoueneatc per Ftean ia Fcoromtc Ftnantln Fcoptcn per Ftnn:cIal Ecnnic ilnanciel 7Econ,elc

Inputs h. ---- - (Rp) - --- -------------- (Rp) -------------- ha ---------- (R.) ------------ ha ----- (Rp) -------

S-ee (kg) 40 240 190 9,600 7,600 30 150 107 4,500 3,210 100 400 400 40.000 40,000 50 360 265 1d, 13,2 50

Fertilit-eF (kg)IJrea - - ---- --- -- --

TSP/kcl - - - - - -

CheFatalIeInr-tticide 0.5 2,400 9,700 1,200 4,850 -

Rodentleide - -- - - - - - - - - - - - - - - - - -

L.bhr (ron-d.y.)Lan4 'I 2 - - - - O - 1,125 - 13,500 0 - 1,125 - 20,250 0 - 1,125 _ 11.250

-. ep.r.tlee T 24 - 1,125 - 27,000 12 - - - - 8 - - - - 10 -

Pleeting 0I 2 - - 0 - 850 - 3,500 0 - 850 - 8,500 2 - 850 - 12.750T 20 - 850 - 17.000 10 - - - - D - - - is - - -I

Cultur-I 1 0 - - - 0 - 650 - 13,000 0 650 - 13.000 0 - 650 - 13,00Pr_ette- T 15 - 650 - 9,750 20 - -. 20t - - 20 - - - -

Oeceeetleo/ iH 6 - - _ _ 8 - 750 -- 26,250 6 - 750 - 22,500 3 - 750 - 22,500po.thece-t T 30 - 750 _ 22,500 35 - - - - 30 - - - - 30

Subtetl It 10 - - a _ 8 - - - - 6 - - - - 3 - - - -

T -a 1,125 - 11,250 76,250 77 - - 9,000 42.750 21 _ _ 6,750 64,250 7 1,125 - 3,375 59_ 500

HIed (t) 20 - - - - - - - - - - -

Total Input- - - 22,050 08,700 - - - 13,500 50,900 - _ _ 46,750 104,250 - - - 21,375 72,150

Yield (ton./ha) 1.5 150 192 - - 1.0 105 75 - - U. 510 409 - - 1.6 300 266 -Revenue (ha) - - - 225,000 288,000 - - - 105,000 75,000 - - 350.,00U 286,300 - - - 180,000 150,600

Net Revenue (ha) - - - 202,950 199,300 - - 91,500 24,040 _ - - 313,250 182,050 - - - 150,625 36,850

ef E

INDONES IA

SECOND PROVIWCIAL IRRIGATION DEVELOPMtENT PROJE:TCRin BUDGET - MENTAWA

Fot-rsaithout Frolect (1995)

Rasnfed Sa-nh Rice (=s) _alanija - MNoi- (da) Gro-ndn-t (dn) s (i_Quan- Unit coRt _ Coat/ha Quin _ Unit coat CstI;a _ Quone Unit coat _ CCst, no Quan- __

Ui..t. it cost Cost hatity/ Financial Economic Financial r:conomtc tity/ Financial Econo=ic Financial iconomic tity/ Fl Economic Financial oni ttyEconomiInpot. ha ------------------ (Rp) ----------------- h. ----------------- (Rp) ----------------- h. ----------------- (Rp) ---------------- ha ----------------- (RS) ----------------

Seed (kg) 30 331 262 9,930 7,860 30 207 136 6,210 4, G80 80 G50 625 52,0i00 50,000 50) 360 265 18, 0,C 13,250Fottili-era (kg)Urea 75 150 315 11,250 23,550 - - - - - 75 150 314 11,250 23,550 50 150 31 7,500 75,700TSF/kcl 25 15N 2 50 3, 750 6,250 - - - - - - - - - - - -Cheitcals Insecticide (1) 2.0 4,140 9,700 8,280 1,400 - - - - - - - - - - - - - -Rodenttitde '.) 1.5 4,140 9,700 6,210 14,550 -

Labor (ma-day.)Lnnd preFpration N 6 0 _ _ - 5T 30 1,125 12 1,125 13,500 20 1,125 - 22,500 15 1,125 16,875Flaetin8 II Ii 0 - 0 - 2T 76 850 10 E50 8,500 10 8 - 8, 500 15 050 12,750CUltiv-ti-n H O S - - 0 1T 30 650 20 650 13,000 28 650 - 1,200 25 650 16,25 .Narvesting/Foat

Scnon-L H 10 - 8 - 26,250 8 750 - 26,30 4T 40 750 35 750 T5 - 35 7V0 26,250Shbtotai H 26 29,250 105,305 8 1,125 9 7,0050 10 1,125 75,450 12 1,125T 4007 93 L5 13, 500 0212 5TOte! In nt

Coat 686.670 106,960 15,120 51,830

62,250 125, 40 39, 000 IO,075Yield (tons/haI U.S 1.0 0.8 600 622 480,000 497,600 0.8 350 373 280,000 298,400

Re-e-ne (h) 259 259 667,500 647,500 133 133 133,000 133,000Set Levenue 'h,) 578,830 470,540 117,790 81,170 4I6R75O 372,150 241,000 197,325

INDONES IA

SECOND PROVINCIAL IRRIGATI N DEV¶ILOP¶ENT PROJECT

CROP BUDETI

Futue With Project (1995)

Irrigated paddy (ws) ____ __Irrigated paddy (ds) _P__ _alawija - Maize (ds)Qnaa- tUnit cost__ Costa Quan- _ Uni_ coat _ Coha _ Quan- Un_ tit, coat C Tosttahatctity/ Financial Ecollnos-ic Financial Economic tity/ Finaracial Economic Finilicial Ecoaomic Lity/ Financial Econoric Financial Econlomic

ha-- (Rp) -------- … --- ha …-------- - (Rp) ---------- …------- ha…- (Rp) --

Seed (kg) 30 331 262 9,930 7,860 30 331 262 9,930 7,860 30 360 265 6,210 4,080

Fertilizers (kg)Urea 180 150 314 27,000 56,520 180 150 314 27,000 56,520 50 150 314 22,500 36,441TSP/kel 100 10 250 iin !,00 25, 000 100 150 250 15,000 25,000

ChenmicalsTnsecticide (1) 4.0 4 1441 9,710 16,5kO 38,800 4.0 4,140 9,700 1u,S0 38,800 1 4,140 9,700 t,140 9,/00Ro$entici Ie (kg) 2.0 4,140 9,700 8,280 19,400 2.0 4,140 9,700 8,280 19,400

Lahor (man-days)Land preparation H 8 -_ 8 - 1,125 - 45,000 3 1,125 13,500

T 40 1,125 45,000 40 - 12 -?lantlng I 10 - - 10 - 850 - 29,750 5 850 10,200

T 35 850 29,750 35 - 12 -Cultivat

1oil 11 0- - 0 - 650 - 22,750 0 650 1,,000

T 35 650 22,750 35 - 20 -tlarvestiag/Post

rlarvest ,1 15 - - 15 - 750 - 37,500 8 750 39,375T 50 750 37,500 50 35 -

Subtotal H 33 37,125 135,000 33 1,125 37,125 135,000 11 1,125 12,375 76,075T 160 1,125 160 79

Total InputCost/ha 113,895 282,580 113,895 282,580 - 30,221 105, 555

Yield (tons/ha) 1.5 259 259 3.2 259 259 1.2Revenue (ha) 906,500 906,500 828,800 828,800 133 133 159,600 159,600

Net RevenAe 'la) 792,605 622,920 714,905 546,220 129',375 54,045

a >01

o >,

Groundnut SoybeanQuan- Unit cost Cost/ha Quan- Unit cost Cost/hatity/ Financial Economic Financial Economic tity/ Financial Economic Financial Economicha -------- (Rp) ----------------- ha --------------- (Rp) -----------------

Seel (kg) 30 650 625 52,000 50,000 50 360 265 13,000 13,250

Fertilizers (k-)'Jrea 75 150 314 11,250 23,550 50 150 314 7,500 15,700TS3P/k(cl 75 15( 250 11,250 18,750 50 150 250 7,50'1 12,50(

ChemicalsInsectiside (1) 2 4,140 9,700 8,280 19,400 2 4,140 9,700 8,280 19,400RoAenticide (kg) - - - - - - - -

Lahor (man-days)Land! preparation 11 0 - - 5 - -

T 20 1,125 22,500 15 1,125 16,875Planting H 0 - - 2 - -

T 10 850 8,500 15 850 12,750Cultivation 1I 0 - - 2 - -

T 28 650 18,200 30 650 19,500Harvesting/PostHlarvest "I 8 - - 26,250 4 - - 26,250

T 35 750 35 750

Subtotal T1 10 1,125 11,250 75,450 13 1,125 14,625 75,375T 93 95

Total Input* Cost/ha 94,030 187,150 55,905 136,225

Yield (tons/ha) 1.0 600 622 1.0 350Revenue 'ha) 600,000 622,000 350,000 373,000

Net 2evenue (ha) 505,970 434,850 294,095 236,775

0

INDONES IA


Cost Estimate for Mentawa (Sedang) Scheme

(Rp million/$ OOO)/a(1983 values)

Total Cost Preproject 1984/85 1985/36 1986/87 1987/88 1988/89 1989/90 1990/91

Rp $OOO Rp M $$000 Rp M $O00 Rp M $$000 Rp °M $ 000 Rp M $ 000 Rp M $S000 Rp M $ 000 Rp M $ 000

Preliminaries 52.0 54 52 54 - - -Investigations 42.9 44 42.9 64 -

Land acquisition 487.5 503 - - 162.5 168 162.5 168 162.5 168Access road to scheme 97.5 101 - - 97.5 101 - - - -

Pianning and design 265.2 273 161.2 166 52 54 52 54 - -

Construction

S-"pe.:vlia'o1i ;95 201 39 40 39 40 39 40 39 40 39 40

Weir 966.42 996 144.4 118 398.32 411 338 348 115.7 119 - -

Main & secondary canals 3,263 3,364 26 27 1,482 1,528 1,365 1,407 390 402 - -

Drainage canals 364 375 16.9 17 176.8 182 170.3 176 - - - -

Tertiary construction 1,397.5 1,441 - - - - 175.5 181 624 643 598 616 1Access 6 farm roads 315.3 325 - - - - 94.25 97 117 121 104 107

Bnlildings 181.4 186 - - 68.25 70 30.94 32 42.9 44 39.26 40

Equipment & vehicles 287.3 296 - - 48.75 50 7.8 8.0 130 134 100.75 104

Land development 1,936.5 1,996 - - - - 293.3 292 329 339.2 575.8 59.3 575.8 593 172.7 178

(land clearing/sawah

formation)

Total Base Costs 9,851.52 10,155 452.4 466 2,525.1 2,604 2,718.6 2,803 1,950.1 2,010.2 1,456.8 1,500 575.8 593 172.7 178

Physical contingency (15X) 1,477.73 1,523 67.9 70 378.8 390.6 407.8 420.2 292.5 301.5 218.5 225 86.4 39 25.9 26.7

Subtotal 11,329.3 11,673 520.3 536 2,903.9 2.994. 6 3,126.4 3,223.4 2,242.6 2,311.7 1,675.3 1,725 662.2 682 197.6 204.7

Price contingency /b 3,892.03 4,011.0 38.91 40.09 590.25 608.7 990.3 1,021.03 905.9 933.8 332.44 857.?7 6,394z7 406.52 180.28 143.78

Total Capital Costs 15,201.34 15,689 559.2 576.1 3,494.1 3,603.3 4,116.6 4,244.4 3,148.5 3,245.5 2,507.7 2,582.1 1,056.9 1,088.5 338.1 348.5

Operation and maintenAne. /c 21.9 23 44.6 46 66.5 69 74.4 77

/a Predevaluation cost estimates converted at Rp 970 - U5$1 after reflecting a 38% increase in the foreign cost component (42%) and a 25% increase in the domestic cost component (58%).

Errors due to rounding.

/b Based on estimated foreign cost inflation rates of 8% in 1983, 7.5% in 1984, 7% in 1985 and 6% thereafter and local cost inflation rates of 20% in 19d3, 15% in 1984, 11% in 1985 |2

and 7% thereafter. Iz

/c OM costs are Rp 17

,50 0

/ba/year. X x


INDONESIA


Mentawa - Economic Costs and Benefits and Rate of Return(US$ Million)

Construction Incre-Farm & Total O&M Total mental/f Net

Year Irriga- Land devel- access captial equip- economic economic bene-tion /a opment /b roads costs ment/d costs /e benefits fits

1983 0.381 - 0.381 - 0.809 - -0.8091984 1.633 0.168 0.072 1.873 0.040 2.190 0.198 -1.9921985 1.599 0.402 0.069 2.070 0.006 2.412 0.396 -2.0161986 0.886 0.439 0.086 1.411 0.107 1.518 0.594 -0.9241987 0.474 0.076 0.550 0.102 0.832 0.792 -0.0401988 0.676 0.474 0.037 0.582 0.990 +0.4081989 0.142 0.142 0.055 0.218 1.188 +0.9701990 0.062 0.062 1.386 +1.3241991 0.062 0.062 1.584 +1.5221992 0.062 0.062 1.782 +1.7201993 0.062 0.062 1.980 +1.9181994 0.062 0.062 2.180 +2.1181995 0.062 0.062 2.180 +2.1181996 0.262 0.262 2.190 +1.9181997 0.062 0.062 2.180 +2.1181998 0.062 0.062 2.180 +2.1181999 0.062 0.062 2.180 +2.1182000 0.062 0.062 2.180 +2.1182001 0.062 0.062 2.180 +2.1182002 0.062 0.062 2.180 +2.1182003 0.062 0.062 2.180 +2.118

/gTotal 4.499 2.301 0.303 6.900 1.415 9.629 32.69 23.06

ERR = 16%/h

/a Includes preliminaries, survey and design.7i Includes land aquisition costs./c Includes preproject costs./d Equipment is replaced every 10 years.7h Converted from financial costs using conversion factors Annex 2 Table 1.

Includes physical contingencies./f Source: Table 5./g Errors due to rounding./h Life of project assumed = 20 years.

ANNEX 2

- 80 - Table 10

INDONESIA

SECOND PROVINCIAL IRRIGATION PROJECT

Farm ]:ncome! Analysis - Kecil Scheme/a

Present Future without Future with(1983) Project (1995) Project (1995)

Cropping Crooping Croppingpattern Revenue pattern Revenue pattern Revenue

(ha) (Rp) (ha) (Rp) (ha) (Rp)

Rainfed Sawah Rice (ws) 0.40 150,000 0.50 258,750 -

Yield (ton/ha) 2.'iO - 2.50 -

Jpland Rice (ws) 0.06 13,500 0.06 13,630Yield (ton/ha) 1.].5 - 1.50 - _

Irrigated Rice (ws) - - - - 1.00 724,500Yield (ton/ha) - - - - 3.50

Irrigated Rice (ds) - - - - 0.25 129,375Yield (ton/ha) - - - - 2.50

Maize (ds) 0. 20 21,000 0.20 26,600 0.20 31,92(0Yield (ton/ha) 1.(0 - 1.00 - 1.20

Cassava (ds) 0.1.2 36,000 0.15 45,000 -

Yield (ton/ha) 12.00 - 12.00 - -

Soybean (ds) - 36,000 - - 0.05 17,500Yield (ton/ha) - - - - 1.00

Subtotal (ha) 0.78 220,500 0.91 348,980 1.50 903,295

Expenditure on Agricultural Inputs;;eed 4,671 6,985 11,046Urea 1,800 3,000 27,600TSP/KCL 1,800 3,000 14,250Insecticide 1,920 4,140 15,732Fungicide 960 2,070 5,175Rodenticide 2,208 3.870 8.708Hired labor 11,453 14,265 51,750

Subtotal 24,812 _37,330 134,261

IPEDA land tax /b 3,850 1.2,570 12,570

Water contribution /c - - 6,469Net Agricultural Income 191,838 299,080 749,99 5

Off Farm Income /d 136,500 11.2,500 67,500

Total Net Income 328,238 41.1,580 817,49 5

(US$) /e 339 424 843

Income per capita US$) /f 68 85 169

/a The typical farm of 1.0 ha in the future at full development irrigates 1 haof sawah in the wet season and cultivates 0.25 ha irrigated sa.wah, 0.2 hamaize and 0.05 soy in the dry season.

/b IPEDA at present is estimaced al: Rn. 3,850/ha and will increase to Rp. 12,570/ha in thefuture.

/c Water contributions average 25 I;g/paddy per ha for each cropping season = Rp. 5,175/haper crop in the future at full levelopment.

/d At present, familv labor demands only amounts to about 50 mandays per year.It has been estimated that off-f.arm incomes, earne1 on larger farms outsi.dethe area or other dryland :)lots amount to about Rp. 112,500/ha. (125 mandaysat Rp. 900 ner day). At full development, family labor demands increase toabout 120 mandays per vear. Consequently off-farm income falls toRp. 67,500 (75 mandays at Ip. 900 per day).

/e Converted at Rn. 970 = US$ L/f Five persons per farm family.


INDONESIA

SECOND PROVINCIAL IRRIGATION PROJECT

Farm Income Analysis - Sedang Scheme (Mentawa) /a

Present Future without Future with(1983) Project (1995) Project (1995)

Cropping Cropping Croppingpattern Revenue pattern Revenue pattern Revenue(ha) (Rp) (ha) (Rp) (ha) (Rp)

Upland Rice 0.60 135,000 - - -

Yield (ton/ha) 1.50 - - - -

Rainfed Sawah rice - - 1.00 647,500 -

Yield (ton/ha) - - 2.50 - -

Irrigated Sawah - - - - 1.75 1,586,375Yield (ton/ha) - - - - 3.50 -

Irrigated Sawah (ds) - - - - 0.60 497,280Yield (ton/ha) - - - - 3.20 _

Maize (ds) 0.16 16,800 0.60 79,800 0.60 95,760Yield (ton/ha) 1.00 - 1.00 - 1.20 -

Groundnut (ds) 0.13 45,500 0.17 81,600 0.17 102,000Yield (ton/ha) 0.70 - 0.80 - 1.00 -

Soybean (ds) 0.05 9,000 0.08 22,400 0.08 28,000Yield (ton/ha) 0.64 - 0.08 - '.00 -

Subtotal (ha) 0.94 206,300 1.85 831,300 3.20 2,309,615

Expenditure on Agricultural InputsSeed 12,580 23,936 66,592Urea 720 13,763 76,463TSP/KCL - 3,750 40,247Insecticide 8,280 40,987Rodenticide - 6.210 19.458Hired labor 9,254 37,643 97,752

Subtotal 22,554 93,582 335,499

IPEDA land tax /b 6,738 21,998 21,998Water contribution /c - - 15,216

Net Agricultural Income 177,008 715,720 1,936,902

Off Farm Income /d 172,500 13,500 37,500

Total Net Income 349,508 729,220 1,974,402

(US$) /e 360 752 2,035Income per capita US$) /f 65 137 370

/a In this transmigration area, settlers generally receive two separated plots of 1 ha forrice cultivation and 0.75 ha for dryland cultivation (A house plot of 0.25 ha is alsogiven but excluded in this analysis). The separate plots are likely to be a good andpoor irrigation site.

/b IPEDA is estimated to be Rp 3,850/ha and will increase to Rp 12,570/ha with future./c Water contributions average 25 kg/paddy per ha for each cropping season = Rp 6,475/ha

per crop at full development./d Family labor demands in the present (73 man-days) and future without project (163 man-

days) permit off farm agricultural labor of a minimal amount. It is estimated at 25man-days in the present and 15 man-days in the future without project valued at Rp 900/day. In the future with project, demand for family labor is high (360 man-days peryear) precluding off farm agricultural labor. In addition, since Mentawa is a transmi-gration site, opportunities for off-farm labor exist in the present (100 man-days atRp 1,500/day) and 25 man-days in the future, mainly for construction.

/e Converted at Rp 970 = US$1.7f 5.5 persons per farm family.

- 82 -

ANNEX 2Table 12

INDONESIA


(lost and Rent Recovery

Typical Kecil Scheme(Rp 000)

Values per farm /a

At Full Agricultural Development

Gross value of farm production 903.3Less cash production costs 134.3

Net cash income 769.0

Less inputed value of family :Labor /b 102.0Less inputed value of manager /c 38.5Less alowance for risk /d 76.9Less general taxes /e 45.2

Equals project rent 506.4

TPEDA/water contributions 19.0

Discounted Flows Over Project Life /f

Project rent 2,541.0Project costs (including physical contingencies) 1,606.0O&M costs 50.5IPEDA/water contributions 64.3Direct cost recovery 4%Rent recovery 3%O&M recovery 127%

/a Average farm = 1 ha, 400 farms per scheme.7b 120 days/year valued at Rp850/day.T 5% net cash income.7Td 10% net cash income.7T 5% gross farm output.77 Net present value, disccunte!d at 10% over project life (15 years).7_ Cost recovery index = discounted stream of charges divided by discounted

stream of costs./h Rent recovery index = discounted stream of charges divided by discounted

stream of project rent./i O&M recovery indexes = discounted stream of charges divided by discounted

cost of O&M.

- 83 -ANNEX 2Table 13

INDONESIA

SECOND PROVINCIAL IRRIGATION DEVELOPMIENT PROJECT

Cost and Rent Recovery - Mentawa(Rp' 03)

Values per farm /a

At Full Agricultural DevelopmentGross value of farm production 2,309.4Less cash production costs 335.5

Net cash income 20 073.9

Less imputed value of family labor /b 306.0Less imputed value of manager /c 103.7Less allowance for risk /d 203.4Less general taxes /e 115.5

Equals project rent 1:,345.3

IPEDA/water contributions 38.4

Discounted Flows Over Project Life /fProject rent 6,272Project costs (includin7 physical contingencies) 4,943O&M cost 145.5IPIDA/iwater contributions 178Direct cost recovery 10 4%Rent recovery /h 3%O&M recovery /1 122%

/a Average farm is 2 ha yet cultivated area only is 1.75 ha. Consequentlyassume 2,286 farms in project area of 4,000 ha.

/b 360 days valued at Rp 850/day.Tc 5°' net cash income./d 10% net cash income./e 5% gross farm output./f Net present value, discounted at 10% over project life (20 years)./g Cost recovery index = discounted stream of charges divided by discounted

stream of costs.|h Rent recovery index = discounted stream of charges divided by discounted

stream of rent./i O&M recoverv index = discotunted stream of charges divided by discounted

cost of O&M.

Annex 3- 84 - Page 1

TNDONESIA


Selection Criteria, PrcScedures for Selection and Tmplementation, andGuidelines and Training Activities

A. Selection Criteria and Typical Specification

1. Selection Criteria for Kecil Schemes. Schemes will meet the follow-ing minimum criteria:

(i) water will be available for a cropping intensity of 120% and themaximum irrigal:ed area should not normally exceed 1,000 ha;

(ii) soils will be suitable for rice as demonstrated by existing rain-fed paddy on the site;

(iii) at least 40-50% of the area will have existing rainfed paddy cul-tivated at present;

(iv) there will be a maximum conversion of 5% of land presently underpermanent crops such as coffee or coconuts;

(v) farmers will be settled in at least 70% of the area to becultivated, and there should be no potent:ial problems with landstatus. Average operational farm size should not exceed 2hectares;

(vi) major land development should not normally be executed on morethan 20% of the area to be irrigated;

(vii) existing roads and access to marketing facilities will beadequate for most of the scheme;

(viii) if potential flooding problems exist, it will be possible tomitigate the flododing with a low cost drainage system;

(ix) farmers will be acl:ively involved in scheme preparation, andshould concur with the designs; and

(x) costs will not normally exceed $1,500/ha for irrigation and$600/ha for land development.

2. Typical Specifications for Kecil schemes wil:L be:g


TYPICAL KECIL SCHEME SPECIFICATIONS

Operational irrigation area 250 to 1,000 haWater supply based on a 1 in 5 year low

flowDiversion structure or intake (nos). 1 or more permanent weirs

CanalsMain and secondary 8 to 15 m/haLined canal 1 to 2 m/haTertiary and quaternary 30 to 50 m/haMain drains 5 to 10 m/haTertiary drains 30 to 40 m/ha

Tertiary blocks 50 t-, 150 haQuatenary blocks 8 to 20 ha

Main system structures (nos.) /a 45 to 60 per 1,000 haComposed ofDivision boxes of ......... (nos.) 10 to 16 per 1,000 haWater control structure (nos.) 1 to 2 per km of canalsDrainage culverts and inlets (nos.) 0.5 to 1 per km of canalsRoad crossing bridges, etc. (nos.) 0.2 to 0.5 per km of canalsWasteways, flumes and other (nos.) 0.2 to 0.5 per km of canals

Tertiary system structure (nos.) /a 70 to 160 per 1,000 haComposed ofDivision boxes and tunnels (nos.) 40 to 100 per 1,000 haOther structures (nos.) 30 to 60 per 1,000 km

/a These are average range of values and may increase or decrease slightlydepending on site conditions.

3. Selection Criteria for Sedang Schemes. Schemes selected will beappraised by DPP and will have a minimum ERR of 12%, no major social problems,and a normal maximum of 5% of land presently under permanent crops.Guidelines have been prepared under Irrigation XV for evaluation of projectsas the standards to be used for project evaluation and for training materialsunder the Project i.e.:

(i) BP3: Appraisal and Evaluation of Projects - January 1983 (fifthdraft); and

(ii) BP2A: Studies and Evaluation for Small and Medium ScaleIrrigation Schemes (February 1983).

4. Technical Specifications for Sedang Kecil Schemes will vary widely,but typically will consist of:

Annex 3- 86- Page 3

TYPICAL SEDANG KECIL SCHEME SPECIFICATIONS

Range Provincial Average

1. Operational irrigation area /a 1,400 to 7,000

2. Diversion structures (nos.) 1 or more

3. Canals /bMain and secondary 8 to 10 m/haTertiary canals 20 m/haQuatenary canals 30 to 40 m/haMain drains 7 to 10 m/haTertiary drains 40 m/haNatural river drainage 1-2 m/ha

4. Tertiary blocks (nos.) 50 to 150 haQuatenary blocks (nos.) 8 to 20 ha

5. Main system structures (nos.) /b 45 to 60 for 1,000 haComposed of: - Division st:rucl:ures and turnouts 10 to 15 for 1,000 ha

- Water control structures (checksand drops) 8 to 10 for 1,000 ha

- Drainage culver-ts and inlets, etc. 10 to 13 for 1,000 ha- Bridges 10 to 12 for 1,000 ha- Wasteways, measuring and other

structures 7 to 10 for 1,000 ha

6. Tertiary system structures (nos.), /b 80 to 180 per 1,000 haComposed of: - Division boxes 50 to 120 per 1,000 ha

- Other structures (drops, culverts,etc.) 30 to 60 per 1,000 ha

7. Roads /bAccess roads 10 m per haOn-farm roads 7' m per ha

8. Average operational farm holding 1.0 ha or more but notexceeding 2 ha

/a Irrigable area is based on river flows to irrigate more than one crop on low flowfrequency of one in five years.

/b These are average figures and may vary slightly depending on site.

- 87 - Annex 3Page 4

B. Procedures for Selection, Design, Tendering, ConstructionSupervision and Certification

5. Under this project the agreed procedures for selection, design andcertification we described below. Most of these procedures or standards havebeen used by DGWRD and have been well tested.

A. Procedures for Selection

6. Flow charts in Charts 25072 & 073 indicate the various activitiesofthe project cycle for Sedang and Kecil schemes from project identification toproject construction and certification. The attachments also indicate thevarious agencies involved and the procedures involved in selection of theproject. Under this project these procedures will be adapted as a basis ofselection of projects.

Irrigation Planning and Design Standards

7. DOI has developed procedures for the preparation, design and imple-mentation of Kecil and Sedang irrigation schemes. A list of guidelines thatwill be used for Kecil and Sedang project design are given in Attachment III.These materials will also be used as training material on procedures andstandards.

C. Tendering and Construction Supervision Standards

8. The various tendering and supervision construction standards are:

(a) Tender Activities (i) Standard DPU prequalification documents ofcontractors; (ii) DPU invitation documents for tendering; and (iii)DPU contract documents for Kecil and Sedang schemes;

(b) Construction Supervision (i) Pedoman Kerja Untuk Pengawas Pekerjaan(1971) (Guidelines for Construction Supervision - Kecil Projects);and (ii) Prosedur Dasar Pengawasan Konstruksi (1980) (SedangProjects) ("Guidelines for Construction Supervision").

D. Certification

9. Certification procedures will cover the following:

(a) The technical soundness of subproject design;

(b) that subprojects satisfy the criteria for selection of kecilsubprojects;

(c) that construction has been completed according to the plans andspecfications; and

(d) that subprojects are functional and able to supply water to rice-field farmers and/or land owners in the service area.

Annex 3

- 88 - Page 5

Descriptions of the certification procedures are outlined in "Guidelines forInspection and Certification," November 30, 1982, prepared for the Sederhanaproject funded by USAID.

10. Formal certificates are required for major works (2) and fortertiary works (3) as follows:

Major Works

- Certification of technical soundess of design.

- Certification of completion of construction.

Tertiary Works

- Certification of c:ompletion of design.

- Certification of comp]etion of construction.

- Certification of formation of water user association.

11. The certification of formation of water uses associations is theresponsibility of the Ministry of Agriculture, Directorate General of FoodCrops Agriculture (DGFCA).


C. List of Guidelines and Training Materials

12. Guidelines for Special and Sedang Projects

General Design and Guidelines, "Pedoman Dan Kriteria Perencanaan TeknisIrigasi," August 1980 - by SubDirektorat Perenkannan, Teknis (Directorateof Irrigation DOI).

"Technical Specifications for Vertical Air Photography" - by Directorate ofIrrigation (DOI).

General Specifications for Survey, Investigation, Planning and Design "Buku-ISyarat-Syarat Umum Pelaksanaan Pekerjaan," by SubDirektorat PerenkanaanTeknis (S-DPT) Directorate of Irrigation (DOI).

Standards for Ground Survey "Buku-2A Syarat-Syarat Teknis Untuk Pekerjaan;Pengukuran Dam Pemetaan Situasi Secara Teritis" - by SDPT, Directorate ofIrrigasi (DOI).

Guidelines for Aerial Photography and Ground Control "Buku-2B, Syarat-SyaratTeknis Untuk Pekerjaan; Pemotretan Udara Dan Pemotretan Orthophoto," byS-DPT, DOI.

Guidelines for Survey for Canal Alignment and Related Structures "Buku-2Syarat-Syarat Teknis Untuk Pekerjaan, Pengukuran Dan Penggambaran TraseSaluran," by S-DPT, DOI.

Guidelines for the Design of Tertiary Canals "Syarat-Syarat Teknis UntukPekerjaan, Pengukuran Dan Perencanaan Teknis Jaringan Irigasi Tersier,"by S-DPT, DOI.

Guidelines for Geological Investigation for Weir Sites, Canal Alignmernt andStructures, "Buku-2E Syarat-Syarat Teknis Untuk Pekerjaan, PenyelidikanGeologi Teknik Dan Mekanika Tanah," by S-DPT, DOI.

Standards for Design of Canals and Related Structures "Buku-2F Syarat-SyaratTeknis Untuk Pekerjaan, Perencanaan Teknis Jaringan Irigasi," by S-DPT,DOI.

Guidelines for Agricultural Soil Survey "Buku-2G Syarat-Syarat TeknisPekerjaan, Survey/Penelitian Tanah Pertanian," By S-DPT, DOI.

13. Guidelines for Kecil Irrigation Schemes

General Design Guidelines for Sederhana Irrigation Project" by InternationalEngineering Company, Inc. in Association with Sinotech Engineering Con-sultants, Inc. and Sangkuriang Ltd., Architects and Consulting Engineers,Jakarta, Indonesia.

"Preliminary Hydrological Study Report on Estimating Low Flow and Flood Flowfrom Small Watersheds" by International Engineering Company, Inc. inassociation with Sinotech Engineering Consultants, Inc. and SangkuriangLtd., Architects and Consulting Engineers, Jakarta, Indonesia.

- 90 - Annex 3Page 7

Technical Paper No. 1 "Survey an,l Mapping Requirements and Procedures" May1981 by same above authors.

Technical Paper No. 4 "Design of Free Intake Diversion Facilities" April 1981by same authors.

Technical Paper No. 5 "Design of Gabion Weir Diversion Facilities" May 1981 bysame authors.

Technical Paper No. 6 "Design of Masonry Weir Diversion Facilities" June 1981by same authors.

Technical Paper No. 7 "Design of Canal Intake Structures" June 1981 by sameauthors.

Technical Paper No. 8 "Design of Drop Structures" June 1981,, by the sameauthors.

Technical Paper No. 9 "Design of Chutes and Bench Flumes" April 1981, by thesame authors.

Technical Paper No. 10 "Design of Checks, Diversion Boxes and Turnouts" June1981, by the same authors.

Technical Paper No. 11 "Design of Elevated Flumes" June 1981, by same authors.

Technical Paper No. 12 "Design of Cross-Drainage Facilities" June 1981, by thesame authors.

Technical Paper No. 13 "Design of Bridge-Structures" March 1981, by sameauthors.

Technical Paper No. 14 "Design of Wasteways" March 1981, by same authors.

Technical Paper No. 15 "Design of Sand Traps" June 1981, by same authors.

,tINNLA 4- 91 - Page 1

INDONESIA


Project File References

1. Preapprai-sal report. Sedang Kecil Irrigation Project prepared by DPP(DGWRL).

2. Appraisal reports on eight sample sedang kecil schemes /1 prepared by theSubdirectorate of Appraisal and Evaluation within DPP, assisted byconsultants from Binnie and Partners (Far East) Ltd.

3. Sederhana Evaluation (I) by consultants sponsored by USAID. Report onSederhana irrigation and reclamation program (IRS) 1978.

4. Sederhana: Indonesian Small-scale Irrigation, February 1982. USAIDReport #29 (PN AAJ 608).

5. Manpower Development and Training Program, July 1982. Ministry of PublicWorks.

6. The Sederhana and Sedang Kecil Program for Repelita IV, Binlak II.

7. Development of Pencataken Sawah: Program Reports 1979/80, 1981/82,1982/83; Implementation reports 1979/80, 1980/81, 1981/82, 1982/83.

8. Sample provincial data surveys on the eight provinces, completed 1982/83.

9. Program Pembangunan: Jarigan Irigasi; Sedang Kecil; Dalam Pelita III(1979/80-1983/84), (Sedang kecil, Mid-term review) April 1982, DOI.

10. Guidelines prepared by DPP Bina Program-assisted by Binnie and Partners(Far East) Ltd.

Guideline BP1: Preparation of Invitation Documents for Studies of WaterResources Projects, July 1982 (4th draft).

Guideline BP2A: Studies and Evaluation for a Small Irrigation Scheme,February 1983 (working draft).

Guidelines BP2 and BP3: Evaluation of Water Resources Studies,January 1983 (5th draft).

/1 Schemes were appraised in Bengkulu, Riau, West Sumatera, South Sumatera,and all of Sulawesi.

- 92 - ANNEX 4

Page 2

Guideline BP4: Land Evaluation for Water Resources Studies in Indonesia,February 1983 (2nd draft).

Guideline BP5: Design Floods for an Irrigation Weir in Indonesia,An Example from the Oul:er Islands, march 1983 (Ist draft).

11. See also the list of sl:andards in Annex 6.

12e Report by W. David, Additional Report, march 1983 (Agr.icultural report).

13. Report by J. Mackinnon (Environmental report).

14. Sederhana Irrigation arnd Land Development II, Quarterly Progress report#10, October 1, 1982-De!cember 31, 1982; IECO in association with USAID.

15. Review of Irrigation Seictor Work Program - An Issues P'aper, October 1982,prepared by AEPA5.

16. Financing of Operation and Maintenance Activity in the Irrigation Sub-Sector in Indonesia: Implications for Cost Recove!ry, (Draft) August1982, D. Thompson, AGREP/AEPA5.

- 93 -ANNEX 5

INDONESIA


Statements of Expenditure

1. Quarterly statements of expenditure will be used for Bankdisbursement of 75% of the progress payments made for civil works contractsranging from $0.2 million to $1.5 million in size, amounting to $49.6 millionof Loan Funds. Civil works will be procured through a number of smallcontracts, tendered according to LCB procedures. Contract documentationwill be held by DOI and available for periodic sample inspection by Bankstaff.

2. Quarterly statements of expenditure will also be used to disburse100% of training costs of $2.2 million. Standard costs for training will beagreed upon during project implementation.

3. Statements of expenditure will therefore be used to disburse 58%of Loan Funds. These procedures have been used widely in other ongoing Bankirrigation loans in Indonesia, with good results.

- 94 -

ANNTFX 6

Table1

INDONESIA

SECOND FROVINC [AL IRRIN.ATIOS DEVILOPMENT PROJECT

Staff:ng Increases by Province

ProvincLal office Section officePlan- Construction Constructionning & Irri- River/ Planning Irri- River/design gation swamp O&M Admin. Total & design gation swamp OSM Admin. TotalP F P F P F P F P F F P F P F P F P F P F F

South Sumatera

Engfneers/Surveyors: ProfessionalTr: Irrigation engineer 4 4 5 6 3 3 2 2 14 15…S - - -

Surveyors - 2 3 5Others (soil, hydrologist) - 6 - 4 10

Pht ootal 4 12 5 13 3 3 2 2 - _ 14 3C 8 - _ _ 8

RIF: TrrfpAtion engineer b 6 8 13 5 5 3 3 - - 20 27 - - 1( 8 8 18Surveyor - 3 3 6 - 2 - I - - 3 12Others

ISubtotal 4 9 11 Iq 5 7 3 3 - - 23 38 _ _ 8 11 _ _ _ 8 _ - S 18

TechnicalISurvey,rs, STM 2 6 5 11 3 6 1 1 - - 11 24 -t

echniclars, ST4 18 22 23 32 .6 16 19 19 2 2 78 91 - 4 30 3z - - 27 30 - - 57 68Cthers

Sulbtotal 20 28 28 43 9 22 20 20 2 2 89 115 _ 4 30 34 _ _ 27 30 _ _ 57 68

NontechnicalProfessional:admin./econ. 2 3 1 2 1 2 - 1 - 1 4 9 - - - 14 14 14 14Nonprofessional:

Admin. 9 12 11 14 14 14 9 9 10 10 53 59 4 15 15 -_ 15 19Others

Subtotal 11 15 12 16 15 16 9 10 10 11 57 68 _ 4 15 15 - _ 14 14 _ _ 29 33

Total 39 64 57 91 11 48 44 45 12 13 193 261 _ P 53 59 _ _ 41 60 - _ 94 127

Riau

Fngineers/,Surveyors: ProfessionalIr: Irrigation engineer 2 5 1 2 1 3 1 2 5 12

Surveyors I 1 _ _ _ _ _ _ I IOthers (soil, hvdrologist)

Subtotal 3 6 1 2 1 3 1 2 -z 6 13 _ _ - _ _

bIF: Irrigation engineer 7 9 5 8 3 6 2 6 - - 17 29 - 2 8 2 4 4 9 8 21Su,rvevorOthers

Subtotal 7 9 5 8 3 6 2 6 - - 17 29 - - 2 8 2 4 4 9 8 21

TechnicalSurveyors, STM 5 8 - 2 1 4 - - - - 6 14…- - - 3 - -- - 11Technicians, STM 110 22 6 14 4 18 3 4 - - 23 58 4 8 24 34 4 12 32 96 -64 150Others

Suhtotal 15 30 6 16 5 22 3 4 - - 29 72 4 8 24 37 4 12 32 104 64161

Nontechnicallrofessioral:adi../econ. - … … … … … … …3 9 3 10Nonprofessional:

Adcrin. 40 50 40 50 - - - - - - - - 20 35 20 35Others 2 4 - - 9 16 10 20 - - - - - - - 155 - - - 155

Subtotal _ I _ -I 4 - _ 51 75 50 80 - - Z _ _ _ - 155 20 35 20 190

Total 25 54 12 26 1 L 35 6 20 51 75 102 210 4 8 26 45 6 16 36 268 20 15 92 372

- 95 - ANNEXTable 1

Page 2 of 4

Provincial office Section officePlan- Construction Constructionning & Irri- River/ Planning Irri- River/design gation swamp O&M Admin. Total & oesign gatton swamp O&M Admin. TotalP F P F P F P F P F P F P F P F P F P F P F P F

Uea t Sonatera

Fnpioeers/!urvevors: Crofessinnallr: Trrigation engineer 5 9 - I I 13 18

Sulrveyors - 1 - 1 - - - - - - - 2

Other (soll, hydrologist) 2 2 - - - - 2 2

Subtotal 9 11 5 11 - - I 1 - - 15 22

IlE: Irrigation engineer 5 2 11 14 5 6 3 3 5 5 29 30 - - 8 8 … 8Surveyor 1 3 1 7 - - - - - - 2 10fOther

Subtotal 6 5 12 21 5 6 3 3 5 5 31 40 - - 8 8…I I

Tec hnical''urveyors, STM 4 4 8 10 7 12 - - - - 19 26Technicians, STM 8 11 30 38 30 32 15 15 6 P 89 104 - - 48 48 8 16 48 - _ 64 104Other

Subtotal 12 15 38 48 37 44 15 15 6 8 108 130 - - 49 48 - 8 16 48 _ - 64 104

Nontechnical''rofessional:admin./econ. - - - - - - - - - - - - - - - - - - -

l1onproFessional:Adnin. 5 2 21 23 21 24 6 6 13 32 66 87 - - 8 8 - - 375 600 115 131 490 731Other

Subtotal 5 2 21 23 21 24 6 6 13 32 66 97 - _ 8 9 _ - 375 600 115 131 490 731

Total 32 33 76 103 63 74 25 25 24 45 220 279 - - 48 64 - 12 391 423 11; 115 562 843

Bengkul.

Fngineers/Slurveyors: ProfessionalTr: Irrigation engineer 4 6 3 5 1 2 1 1 - - 9 14

SutrveyorsOther (soil, hydrologist) I - - - - - - -… - -1

Subtotal 5 6 3 5 1 2 1 1 - _ 10 14

BIE: Irrigation engineer 4 8 14 16 2 3 1 1 2 2 23 30 - 3 4 - - 3 4Surveyor 2 5 - - - - - - - - 2 5Other

Subtotal 6 10 14 16 2 3 1 1 2 2 25 35… 3 4 3 4

TechnicalSurvevors, TM 3 6 5 6 6 - - - - - 14 12Technicians, STM 16 21 38 43 8 In 3 11 - - 65 85 - 36 42 - - 36 42Other - - - - - - - - - - - - - - - -'

Subtotal 19 27 43 49 14 10 3 11 - - 79 97 … 36 42 - - 36 42

NontechnicalProiessional:admin.!econ. - -… … … … … … 3 4 3 4Nonprofessional:

Admin. 6 10 12 13 5 7 - 3 65 65 88 9…8 - 17 - - 8 17Other - - - - - - - - 8 8 8 8 - - 208 270 - - 208 270

Suhtotal 6 10 12 13 5 7 - 3 73 73 96 106 _… _ _Z _ 216 297 - - 216 297

Total 36 53 72 83 22 22 5 16 75 75 210 249 … _Z _Z __ 255 343 _ - 255 343

96 - ASANNF. 6

Tabl eIPage 3 o

Provintcial office Section officePlan- Construction Constructionning & Irri- River/ Planning Irri- River/design gation swa 1 ) 061M Admin. Total & design gation s F P Adrnin. TotalP F ' p P PF7 - -T F _P F P F P F P -F F ~ F

North Sulawesi

Engineers/Surveyors: ProfessionalTr: Irrigation engineer 2 4 2 5 I 1 2 5 12 3 - - - 3

Su-rveyors - 1…1Other (soll, hydrologist) -

Sub<total 2 5 2 5 - 1 1 2 - - 5 13 3 - - - 3

ATE: Trrigation engineer I 9 3 11 1 2 2 8 - - 7 30 - 4 2 10 - 4 9 S _ _ 2 26Surveyor -Other

Sobtotal 1 9 3 11 1 2 2 8 - - 7 30 - 4 2 10 - 4 - S - - 2 26

Surrveyors, 9M 2 8 _ _ …2 4 - - - - -4 - _ _ 12Technicians, S7T 5 25 11 35 1 4 3 21 20 85 10 46 24 - R 50 300 - - 96 342Other

Subtotal 7 33 11 35 1 4 3 21 - _ 22 93 _ 14 46 24 _ 8 50 3098 _ 96 354

Nontechnical'rofessinnal:adin.-/econ. - 2 - - I - 1 2 2 - 3 4Nonprofessional:

Ad.in. 1 3 4 5 - 1 - 4 18 14 23 27 - 4 - 8 - 4 - 8 8 20 8 44Other - 2 2 - - 1 2 P - - 4 11

Subtotal 1 7 6 5 _ 2 3 14 20 14 27 38 - 4 _ 8 - 4 - 8 8 20 8 44

Total 11 54 22 56 2 9 9 45 20 14 64 177 - 22 48 42 - 16 50 327 8 25 106 427

Central Sulawesi

Fngineers/Surveyors: 0

rofessionalOr: IrrigAtion engineer 2 4 1 2 2 1 3 4 11

Surveyors - 1 - - - - - - IOther (soil, hydrologist)

Subtotal 2 5 1 2 - 2 1 3 - - 4 12 - - - - - - - - -

BT!': Irrigation engineer 2 8 1 4 2 3 1 3 1 2 7 20 - _ 2 5 2 4 4 5 - 5 14SurveyorOther

Subtotal 2 8 1 4 2 3 1 3 1 2 7 20 - - 2 5 2 4 4 5 - - 14

Technical-urveyors, STM - 4 - - - 2 - - - 6 - - 22 32 6 40 40 60 - 68 132

Technicians, STM 7 18 8 17 4 17 2 8 5 8 26 61Other - - - - - - - - - - - - - - - - - - - - - -

Subtotal 7 22 8 17 4 12 2 8 5 8 26 67 _ - 22 32 6 40 40 60 - 68 132

Nontechnicalnrofessional:admin./econ. - - - I - - - - 2 - 5Nonprofessional:

Admin. - 2 - - - 2 - 2 3 3 3 9 - - - - - - - - 10 12 1 1i2Other - - - I - 3 - 3 - 2 - 9

Subtotal - 2 - 2 - - 5 3 7 3 23 … … - - 10 12 10 12

Total 11 37 10 25 6 24 4 19 9 17 39 122 _ - 24 37 8 44 44 65 10 12 86 158

- 97 - AN4FX 6Table 1

apea 4 of 4

Provincial office Seccion cfficePlan- Construction Constructionning & Irri- River/ Planning Irri- River/design gation swamp O&M Admin. Total & design gation swamp 0&M Admin. TotalP F P F P F P FP P P F P P P P F F P I, F

South Sulawesi

Fngineers/Surveyors: ProfessionalIr: Irrigation engineer 10 14 _ 2 1 2 4 6 _ _ 15 24 2 3 I _ _ _ I 1 1 1 4 5

Serveyors - I … _ _ _ _1 - - - - - -_nthers (soil, hydrnlogist)

Subtotal 10 15 - 2 1 2 4 6 - - 15 25 2 3 _ _ _ _ I I I 1 4 5

3IF: Trrigatton engineer 8 21 7 7 6 6 6 8 - - 27 42 14 16 3 13 - - 2 2 5 5 -

SurveyorOthers - - - - - - -

Subtotal R 21 7 7 6 6 6 8 _ _ 27 42 14 16 i 13 _ _ 2 2 5 5 - _

TechnicalSurveyors, STM 14 14 - - 7 8 2 2 - _ 23 24 - - 46 46 25 27 49 49 - - 120 122Technicfans, 5T 36 40 4 4 3 4 7 12 2 24 52 84 63 63 12 12 11 17 61 61 - - 147 153nthers

Subtotal 50 64 4 4 10 12 9 14 2 24 75 118 63 63 58 58 36 44 110 110 - - 267 275

NontechnicalPrufessional:admin./econ. 3 7 2 2 1 1 1 3 12 12 19 25Nonprofessional:

Admin. 10 12 5 7 5 7 18 20 31 31 69 77 107 107 46 46 26 26 112 112 108 108 399 399Others - - - - - - 2 2 3 3 5 5

Subtotal 13 19 7 9 6 8 21 25 46 46 93 107 107 107 46 46 26 26 112 112 108 108 399 399

Total 81 119 18 22 23 28 38 53 48 70 210 292 186 189 107 117 62 70 225 225 114 114 694 715

Southeast Sulawesi

F ngineersq/Surveyors: 'rofessionalTr: Irrigationengineer - 4 1 1 - - 1 1 - - 2 6 - - - - - - - 4 - - - 4

Surveyors - 2 -2 - - - - - - - -Others (soil, hydrologist) 1 2 - - - - _ _ 1 2 - - - - - - _ _ _

9,,btntal 1 8 1 1 - - I T - _ 3 10… - -4 _- - - 4

31E: Irrigation engineer 4 5 3 7 - I - 3 - - 7 16 - 4 12 - - 4 12SurveyorOthers

Subtotal 4 5 3 7 - 1 - 3 _ _ 7 16 4 12 - - 4 12

TechnicalSurveyors, STM 4 4 - - - _ _ 4 4Technicians, STM 10 16 31 31 1 3 2 9 44 59 - 16 - - - - 16 40 - - 16 56Others - - - - - - - - - - - - 120 - - - 120

Suhtotal 14 20 31 31 1 3 2 9 - - 48 63 - 16 - - - - 16 170 - - 16 176

NontechniealDrofessional:admin.!econ. - - - - - - - - 4 4 4 4Nonprofessional:

Admuin. 4 12 1 5 2 3 3 6 15 20 25 46 16 64 - - 16 64Others

Subtotal 4 12 1 5 2 3 3 6 19 24 29 50 _ _ 16 64 _ - 16 64

Total 23 45 36 44 3 7 6 19 19 24 87 139 - 16 - - - - 36 250 - - 36 256_ ~ ~ ~ ~ - - - - - - - - - - -

INDONESIA


Staffing of Subdirectorate of BINLAK II /a

Bachelor of Technician Admini- Increase of staffingEngineer (Ir) Eng. (BIE/BE) (STM) stration 1984/85 1985/86 Total

Sections Pre- Pre- Pre- Pre- Tech- Admini- Tech- Admini- Pre-

sent Future sent Future sent Future sent Future Ir/BE nicians stration Ir/BE nicians stration sent Future

Section IV 1 3 3 5 3 5 2 3 2 1 1 9 1 - 9 16

Section V 1/b 2 3 4 2 4 1 2 2 1 1 - 1 - 7 12

Section VI 1 3 4 5 4 5 1 2 2 1 1 1 - - 10 15co

Unit VII - - 1 1 1 1 7/c ll/e - - 2 - - 2 9 13 1

Assistants to Chiefof Subdir. BINLAK II - - 3 3 - - l/d I - - - - - - 4 4

Under training forBIE - - - - 5 5 - - - - - - - - 5 5

Total 3 8 14 18 15 20 12 19 6 3 5 3 2 2 44 65

/a Subdirectorate for Small- and Medium-Scale Construction with Directorate of Irrigation.

/b Master degree in eniginieering.7c Consists of 2 graduates (master degree) from Faculty of Social Sciences and 5 high school graduates.7 Treasurer.

/e Additional 4 staffs will be: one economist (master degree), two bachelors in economics or social sciences and one high school graduate. Theadditional 4 BIEs/BEs will be available from the trained STMS (no. 6).

0 X

M 3

-99 - ANNEX 6FIGURE 1

STAFFING REQUIREMENTS 1983/84 - 1987/88

1 20 -1* I 0 -

1 00

90-

80-

70 -

60-

50- ADDITIONAL IR

40- | | iti l ,iB IR 82/8330*- ADDITIONAL BIE

3 BIE 82/8320 -i ADDITIONAL STM

10- *MSTM 82/83.

SEKSI STAFF INCREASES 1983/84 - 1987/88

800

700-

600

500

400-

300- ~~~~~~~~~~~~~~~~~ADDITIONAL IRIR 82/83

200- ~~~~~~~~~~~~~~~~~ADDITIONAL BIEBIE 82/83

100- ADD. STM & OTHERSMgSTM & OTHERS 82/83

0

~~CaS~ p"5\~Y Ca0V 50'\

Ca C CO'

- 100 -

ANNEX CFIGURE 2

MANPOWIER FOR IRRIGATION DESIGN20-

18-

d16-

al14_

L/

H

12-0)

zx

kiGu 0-

2

.8- /

,,, 6-/

z 4-/

1 2 3 4 5 6 7 8 a 10 1 1 12 13 14 15.8' H HA DESIGNED PER YEAR

MANPOWER FOR CONSTR. SUPERVISION48-_

SIJMATERA

L

ILl 20 SULA58ES10

t 0-

z

1 2 3 4 5 6 7 8 a 18 1i 12 13 14 15088 OF H-A CONSTRUEYIED

ANNEX 7Table 1

-101 -

_NDONESIA


Present Provincial Irrigation Section Offices and Staff

Irrigation Staff NumbersIrrigated area per Wilayah &Area No. of No. of Seksi Wilayah Provinice Seksi /d

Provinces ('000s ha) Wilayah /a Seksi /b -- (O000s ha)-- Offices /c Office Field Total

SUMATERAAceh 118 - 11 11 - 100 360 630 1,090North Sumatera 307 3 11 28 102 295 495 1,638 2,428West Sumatera 213 2 8 27 106 230 360 1,138 1,728Riau 78 - 6 13 - 200 270 629 1.108Jambi 36 - 5 7 - 100 225 194 519South Sumatera 136 3 9 15 45 295 405 727 1,427Bengkulu 60 - 3 20 - 19s 135 518 843Lampung 123 - 4 31 - 10 180 659 939

Subtotal 1,071 8 57 19 184 1,519 2,430 6,133 10,082

JAVADkI Jakarta 14 - 1 14 - 100 180 75 355West Java 859 8 27 32 107 620 1,125 4,558 6,303Central Java 697 6 32 22 116 490 1,140 3,702 5,332DI Yogjarkarta 65 - 1 65 - 100 45 348 493East Java 924 10 36 26 92 750 1,620 4,929 7,299

Subtotal 2,559 24 97 26 105 2,060 4,110 1:3,612 19,782

KALIMANTANWest Kalimantan 52 - 6 9 - 100 270 279 649Central Kalimantan 55 - 9 6 - 100 405 291 796South Kalimantan 108 - 9 12 - 100 405 579 1,084East Kalimantan 32 - 6 5 - 100 270 174 544

Subtotal 247 - 30 8 - 400 1,350 1,323 3,073

SULAWESINorth Sulawesi 56 - 3 19 - 100 180 296 576Central Sulawesi 44 - 5 9 - 100 225 235 560South Sulawesi 283 3 10 28 91 100 180 113 393Southeast Sulawesi 21 - 3 7 - 234 450 1,481 2,165

Subtotal 404 2 21 20 91 534 1,035 2,125 3,694

EAST INDONESIABali 56 - 8 7 - 100 360 297 757Nusa Tenggara Barat 160 - 8 20 - 100 315 852 1,267Nusa Tenggara Timor 32 - 12 3 - 100 495 141 736Maluku 100 90 25 215East Timor 100 135 10 245Other Islands 7 - 5 1 -

Subtotal 255 - 33 8 - 500 1,395 1,325 3,220

Total 4,536 34 238 19 100 5,013 10,320 24,518 39,851

/a Regional Office.

/b Section Offices.

/, Professionals (IR & BIE) form 22%; Technicians (STM), 44%; and others, 34% (see Annex 5 for more details).

/i Professionals (BIEs) form 5%; Technicians, 40%; and others, 55%.

- 102 -ANN].X__

INDONESIA Table 2 & 3

SECOND PROVINCIAL IRRIGATION DEVELOPMENT PROJECT_

Repelita III Irrigation Expenditures by Major Subprogram(Pp biLlion, constant 1982/63 prices)

1979/80 1980/81 1981/82 1982/83 1983/84 Total b

lrrigation expansiln Y7.5 128.5 119.3 bl.8 193.t b80.7 28.5Si mpie 27. 7 27.0 9.9 10.9 17.3 91'.8 3.9.iediua-scalce z1.4 25.4 30.6 35.9 32.6 145.9 6.1Lar6e-scadi 28.4 76.1 78.8 115.0 143.7 442.0 18.5

lertiaries 11.8 22.2 13.6 13.5 20.3 81.b 3.4

t.enabilitatiou 101.2 142.4 163.9 164.1 181.1 756.7 31.6

Groundw.ater o.3 5.7 10.0 19.1 12.3 53.4 2.2

,uotata 1,572.4 65.7

Swamap _r_elopment 3u.2 31.3 30.2 32.4 30.2 154.3 6.4Cidai 23.4 21.4 21.9 22.8 20.9 110.4 4.6inland 6.8 9.9 8.3 9.6 9.3 43.9 1.6

_ivers 92.4 95.5 151.2 156.8 168.5 664.4 27.8

Total 323.4 425.4 488.2 547.7 606.2 2,390.9 100.0

/a Estiiiated.

P?YSICAL PROGAESS Of leKIGATION PROGRAMI, REPELITA llI

1979/S0 19801d1 1981/82 1982/83 1983/84Actual Actual actual Estimated Expected Total

……------------------ ('000 ha) ----- …________-____

Irrigation extension 74.1 35.2 54.3 60.6 88.9 333.7Siuaple schemaes 50(.1 28.6 16.5 17.6 33.o 147.0i4ediua-scale schemes 6.6 8.6 8.1 15.4 16.3 55.0Large schemes /a 17.'+ 18.0 29.7 27.6 39.0 13L.7

Relhabilitation /b b3.6 91.5 153.4 159.8 :261.2 729.6

Tertiary development /c b9.4/d 140.4/d 89.7 87.1 135.4 522.0

Groundwater deveLopment 1.8 1.1 2.2 2.3 4.8 12.2

Subtotal 524.2

Swaiap development /e 40.' 83.7 96.3 118.2 125.8 464.5Tidal swamps 26.8 b4.9 82.7 86.4 87.0 347.8inland swamaps /f 13.; 18.8 13.6 31.8 38.8 116.7

River control - - - - - -

lotal 2,062.0

/a Includes schemes being iaplermented by WL, PRUOSIA, P16D, and the Citanduyar.d Wono,iri schemes under the Directorate of Rivers.

/b Inicludes both DOi and PRUS1Dm/PlD/?ROSIJAT activities.

/c This cate6ury includes only tertiaries built in schemes contracted and/orrehabilitated prior to 1979/60. Tertiary construction is also includedin all new construction and rehabilitation work beiag carried out underiepelita II.

/d Work was carried out as part of the G() crash programa.

/e Gross areas. Net settled areas are only 240,000 ha.

/f Includes both rehabilitation and new construction.

PRIS Expenditures, 1979/80 to 1981/82

(Billion rupiah, current)

North Central South Southeast South West Total % of grand

Sulawesi Sulawesi Sulawesi Sulawesi Sumatera Riau Sumatera Bengkulu Amount % total

National Budget (APBN)New irrigation

Sedang kecil 2.4 1.0 3.6 2.3 1.8 2.8 2.7 22.1 38.7 39 31

Sederhana 2.9 3.6 6.1 5.5 2.7 2.9 5.1 3.7 32.5 33 26

Tertiary 0.8 0.4 2.6 1.2 1.0 1.0 3.5 1.0 11.5 12 9

River works 0.6 0.6 0.5 0.2 0.4 1.0 0.9 0.6 4.8 5 4 1

Inland swamp - - - - 1.9 0.9 3.5 2.1 8.4 8 7 H

Hydrology and hydrometry - 0.1 - - - - - - 0.1 - - °

Other (office, equipment, etc.) - - - 0.9 - - 0.6 2.0 3.5 4 3

Total (APBN) 6.7 5.7 12.8 10.1 7.8 8.6 16.3 31.5 99.5 100 80.0

Provincial Budget (APBD)Rehabilitation and upgrading 1.4 0.6 - - 1.6 1.6 2.6 1.3 9.1 37 7

Village irrigation 0.2 0.5 - - - - - - 0.7 3 1

Inland swamp - - - 0.2 - - 0.2 1 -

Subtotal 1.6 1.1 - - 1.6 1.8 2.6 1.3 10.0 41 8.0

Subtotal (development) (8.3) (6.8) (12.8) (10.1) (9.4) (10.4) (18.9) (32.8) (109.5) - (88.0)

O&M (routine) 0.7 0.7 4.5 0.7 1.6 1.8 3.8 0.9 14.7 60 12.0

Total (APBD) 2.3 1.8 4.5 0.7 3.2 3.6 6.4 2.2 24.7 100 20.0

GRAND TOTAL (APBN & APBD) 9.0 7.5 17.3 10.8 11.0 12.2 22.7 33.7 124.2 - 100.0

INDONESIA


Irrigation in Repelita III /aand Proposed Program for Repelita IV

North Central South Southeast South WestSulawesi Sulawesi Sulawesi Sulawesi Sumatera Riau Sumatera Bengkulu Total------------------------------------- ha --- -- --- -- --- -- ------ ~~~~-~~ -~ ~------- -----

AccomplishmentsVilageirrgaton b 7,5A0 - - - - - - 7 SOn

V1 ittase1 tLLtd LLtULi /3.U , nJs Jv.

Sederhana /c 6,300 11,000 11,320 11,900 5,700 3,200 14,600 6,200 70,260Sedang kecil /d 1,400 1,500 2,500 500 1,300 1,500 3,100 7,200 19,000

Tertiary /e 5,200 6,400 11,700 6,000 5,000 7,400 27,800 9,900 79,400 1Rehabilitation and F

upgrading /f 17,000 10,800 - - 7,800 4,300 32,000 17,300 61,400Inland swamp - - - - 14,000 6,000 12,100 21,000 53,000

Proposed Program (Proposed)Sederhana Ig 6,800 11,100 13,500 6,800 10,000 6,000 15,000 9,000 78,200Sedang kecil /g 2,300 9,000 10,500 1,500 5,000 6,700 11,300 8,300 54,600Tertiary program /h 13,500 5,000 8,000 6,000 11,900 9,300 31,600 8,000 93,300

/a Includes anticipated accomplishments by 1983/84 - only completed scheme areas.

/D Refer to schemes 10 to 200 ha, usually handled by kabupaten PU assisted by PRIS.7h Only new schemes are included - deferred maintenance activity is excluded./d Does not reflect a large number of schemes where main systems have been constructed and tertiary construction

is proceeding./e Does not include tertiaries in sederhana in sedang kecil new schemes./f Under APBD budgets, generally for minor upgrading of village, sederhana and sedang kecil schemes.

Complete systems with tertiaries./h Refers to tertiaries for systems with main system completed previously.

I-. Z'MU~

- 105 -ANNEX 7Table 6

INDONESIA


Registered Irrigation Contractors by Capability

South-North Central South east South West

Class of contractor Sula- Sula- Sula- Sula- Sum.qa- Suma- Beng-for irrigation wesi wesi wesi wesi tera Riau tera kulu

Al (Rp 500 million >) 1 - 10 1 23 7 5 11

A2 (Rp 200-500 million) 5 8 31 9 19 8 6 10

B1 (Rp 100-200 million) 9 10 57 7 75 7 9 16

B2 (Rp 50-100 million) 7 50 246 30 111 31 33 58

C1 (Rp 20-50 million) 8 200 } 121 107 126 107 217

}C2 (Rp 3-20 million) 10 500 } 587 }

} } 296 130 397 355 425Others & nonirrigation 587 213 } }

Total 667 991 931 464 465 576 515 737

- 106 -

INDONESIAANNEX 7

SECOND PROVINCIAL IRRIGATION DEVELOPMENT PROJECT Table 7

Irrigation Contracts Processed in 19182/83

Total valueof contracted

Contracts (Rp million) work500> 200-500 100-200 50-100 20-50 Total Rp bln $ mln

North SulawesiNo. of contracts - 1 4 4 7 16 1.6 2.3% of total value - 30 40 18 12 100

No. of contractors 1 5 9 7 18 40

Central SulawesiNo. of contracts - 7 3 8 17 35 3.2 4.5% of total value - 59 15 15 11 100

No. of contractors - 8 10 50 200 .268

South SulawesiNo. of contracts 1 4 3 15 5 28 4.5 6.9% of total value 41 24 10 21 23 100

No. of contractors 10 :31 57 246 200 544

Southeast SulawesiNo. of contracts 1 2 2 8 - 13 3.4 4.9% of total value 81 1L2 3 4 - I:00


South SumateraNo. of contracts 2 2 23 - 26 43 7.6 10.9% of total value 30 22 29 - 19 100

No. of contractors 23 1.9 75 111 107 335

RiauNo. of contracts 2 3 4 7 10 26 3.3 4.7% of total value 38 25 17 12 8 1.00

No. of contractors 7 8 7 31 126 1.79

West SumateraNo. of contracts 1 1 2 8 69 81 3.7 5.3% of total value 21 9 9 10 52 1.00

No. of contractors 5 6 9 33 107 1.60

BengkuluNo. of contracts 2 2 2 3 25 34 7.3 10.5% of total value 80 6 3 3 8 100


Average nos. of con-Average nos. of con-tracts 9 22 43 53 159 - 276

Value bln Rp 14.9 7.3 4.8 2.8 4.8 34.6 34.6 50.0(%) (43) (21) (14) (8) (14) (100)

INDONESIASECOND PROVINCIAL IRRIGATION DEVELOPMENT PROJECT

Implementation Activities and Responsible Agencies for Kecil Projects

PHASES OF THE PROJECT CYCLE ACTMTY RESPONSIBLE AGENCY REMARKS

| Initial l 1. BUPATI. CAMAT, PRIS/Provincial of Agriculture (PDA)

IDENTIFICATIONon | Identitication is by many sourcesIDENTIFICATION…… - _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ but mostly trom the BUPATI

l Questionare 2. PRIS, PEMDA Provinicial Department of Health,Diperta & DAAD (DGFCA).

Review of 3. BINLAK 11Questionare . Joint team is formed to

PREFEASIBILITY assess technical, economic,and social viability

Evaluation 4. DPP (A&E Sub-Directorate) & BINLAK 11.. | ~~~~~~~~~~~~of Data l.

Sufficient_

FEASIBILITY/APPRAISAL 5 DPP & BINLAK 11 in consultation with DAAD (DGFCA) J DPP/BINLAtiI te will i& Diperta mnost cases visit site & team makes

a recommendation to DirectorViabie _ General via DOI Director

i Survey & l 6. PRIS Project's selected in most casesDesign meet technical & economic criteria

DESIGN/APPRAISAL S ufflien - but overall budgetary constraints

Funds A No Revise & may require other factors to beRank Project 7. BINLAK 11 considered for ranking

8. PRIS (Detail Supervision & Project Monitoring) Coordination with Agricultural with

, CONSTRUCTION Construction Provincial & National CommitteesF _ ._ _ 9. BINLAK 11 (Independent Supervision)

Certificaton for

CERTIFICATION Soundness of 10. PRIS Verified by BINLAK 11.Co nstructlo n

Legend: F Activity Description Decision Box World Bonk-25072

- 108 -


Implementation Activitle8i and Responsible Agencies for Sedang Projects

PHASES OF THE PROJECT CYCLE ACTIVITIES RESPONSIBLE AGENCY REMARKS|

| Project f 1 SDPD PRIS. Provincial Goernrrent. Proy nc al PRIS -r tes i, tention repor| Identitoohon J Tronsm ssion. ConsLlutots of yver Bosin Studies

| Desk IDENTIFICATION Study ]

c _ 2 SDPD with Assistance of Coniu tants & 'he Formol dentitcction reparnin !Reonrdisscnce P9 S Diperc & DAAD submitted by SPD;) to Director of

lDOI fto se ection tor further study

MQcping 1(t S) j

I Svstem 1Layout

RREFEASIBILITY |3P SDPD & PR S PS ooes the field-dro ogia 3SPD&P5 S,peiyscia tot mocc sg.Analysis aAreo nd system nlaaout

Water ^ No Limited/Sutic ent 5 - evied

Finsal Layout ]

EconomicCriteric ~SP P,i os;.i,yt SPDP is ass stec as' consujtantt

FEASIBILITY Dam nate o | ilitV ] Other Crterhr Dominrte 4 SDPD & DPE n consuirotion rs for inestr got ons tor agr cu turn

(Social/Po itica DAAD) (GCA). & sOClo-economics_ raD Stop j VicObla

|Str p Survsey

Aignment Crech](1 SLED) j

Laou SPED or PRIS employs cons.Itants

yes Adi u to do the macpping & design Field

DESIGN 5~~~~~~~~~~~~~~~~hes S SDPED & PRIS sup., sion at mopping & design rsdone by PRIS Completed designs,

D menson ~~~~~~~~~~~~~specifications are copiec toWater Surfc BINLAK IV PRIS & to DME

DesignI

|e Hedorxs | |Canal| | tu ;Design Design t { D s

.~~~~~~~~~~~~~~~~E~~g- II'

APPRAISA, |6Apprc scp DEPP (A&E Sub-Direcaote) EINLAK I inAFERAISAc ~ ~ ~ ~ ~~~~Apro ml nons totion yyrh o(;FCA & Dipr., [DEE da,,ise thre Director Genera

5X ves 7 P9IS (Detail Supervision & Moni oring)

CONSTRUCTION | onstruction

8. BINLAK li

CERTIFICATION 9Certircation P.1S (Checked b BINLAK SI)

.egenrd: Actvity Description <> Doisn Box Word Bank-25C73

INDONESIASECOND PROVINCIAL IRRIGATION DEVELOPMENT PROjECT

Agencies Involved with Irrigation at Provincial Level

IRRIGATION SERVICES ADMINISTRATION AGRICULTURAL SERVICES

Ministry of Public Works L Ministry of Inter Ministry of Agricultiure

Direc General of I INainal AWater Resources Ln _ Commitee E;IM Director General Che DG Research & Education

Development on Rice Development Training Extension

Directorate of Directorate of Directorate of Directorate of I Directorate of Directorate of ch

Programming Irrrnps i ogistic Engineering Institute for _ _ InformationAgriculture cene

I__ _____ I

I SubSeksService VillageUitIrrigation Provincil Governor

Provincial l Provincial l Provincial Agricultural | Provincial len igat (Irrigaion tion Development Commiee Agricultural Officer Ci Service Commuttee Unit

| | Kabuputpen: Bupati |

i | Wilayah ~~~~~~~~~~~District | | Dsrct Aricultural r itict Operat,jIrrigationtenaice Irrigaon aDevelopment Committee - Office

Engineer l W Committee Bank-25075

| | ~~Kecamatan: Camat|

|Seksi/Cabang | | Sub Dstrict Sub-District u -SbDstrict,|Section Irrigation | | Irrigation Agricultural Development | i|Extension Officer

Engineer | Committee Committee

l l l [ Ke~~~~~~~~~~pat Desa

I |Sub-Seksi Service | ilg nit Irr gotion Vlage Unit j Vlage Unit BRI |

|Pengamat (Irrigcitior| | omittee & Agricultural Extension Officer Credit l j ~~~~Forernen) BUD/KUD j j Committee | (PPL)

I |Juru Pengairan l|ti =- niiI W | ~~~(Irrigation- Ulu-Ulu |Farmers Groupsr

|Sub-Foremen) || 10O Ho. 200 Farmers|I

I I | 0 O~~~~~~~~~~~~uarternary, Unit |

Opercation &Maintenance Staff Ili-l| Farmers Groups ; _ _

I ir. | ~~~~~~~~15-20 Hai 20-30 Farmers|

World Bank-25075


Director General Water Resources Organization

|MPW

AtDirector General|Water ResucsDoopmn|

r~~~~~~Assistants

to the Director General for Assistant to Director General

Irrigation River J|DIRECTOR GENERAL (JAKARTA) Development Development c

|' | . , 15

Direc tor of |g] Director ofDirector tof Director O D o D P MAPrograraming & Planning | Rive3rs | Sw^ramnps i Irrigation La ,tics (Hydraulic Rosearch) I

i@1 5 Secretariat | | I S ecretariat | H S ecr eta ria l 4 Secretariat

DIRECTORATE (JAKARTA)

(D ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~B

Fk=~~~~~~~~~ M< j LW4W q

C D OCD trr P

0 aJ i .. - -i --w I g 8 c~I P

PRO'VINCIAL/PROJECIt G.W. Projocts |Rrver Projects 1 lrr|rIgationSesvices ||| Projescts ll| Projects |

|RiverE Bin & Projects 'Ir- 51 s Re3hab Proj cts

World Eanik-25082


Directorate of Irigation

Director ofIrrigation

Sub-Directorate Sub-Directorate Sub-Directorate of Small- Sub-Directorate Sub-Directorateof Planning of Large Project & Medium Scale Construc- of Rehabilitation of Operation &

& Design Construction (BINLAK I) tion (BINLAK( 11) Maintenance

C3 3~~~~~~~~~~~~~~~~~~~~

i00 00~~~~~~~~~~~~0 00 0 0V -aWr Bank-50

a- z: a 0a ar a

Wand Bank-25080

Workshop CD~iIISection I ~ IiI

Administration Equipment

Division Section

Monitoring Soe

Division SectionLI2 ~~~~Legal___

o ~ ~ ~ ~ ~ ~ ~ tion ~~~~~~~~~~~~~ ~~River 1-) ~~~~~~~~~~~~Fincnce ImprovementF77

II ~~ I ~Sil Conservatin CL (L ~~~~Personnel .1 River ConseEenc

-~~~~~~~~~ ~~~~Section . T. 1 llt~ ot

CL ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~C

a)L ehabilitation CO .2 -0 Upg~~~~~~~~~~~~~~~rading Section

C)~ ~ = __ ____

0

-z N ew Irrigation- _ _ _ _ _ _ _ -~~~~ ± URL~eieopment _ __ _

04 -00<D __ __ _

Z ~~~~~~~~~~~~~~~~~~~~Operation -

Section

50 :E M~~~~~~~~~~~~~~~aintenanceaSection

Tertiaryz c ~~~~~~~~~~~~~~~~~~~~section

0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

(L C Hydrology/HydrometrY/~ ~ ~ ~ ~ ~ ~ ~~~~o

0 Monitoring Section~ ~ ~~~ 5

x~~~~~~~~~~~~~~~

- 113 -

INDONESIADIRECTORATE GENERAL OF FOOD CROPS

DirectorateGeneral ofFood Crops

Secretariat

Directorate S e Directorate ofaProgramming _Development Area

Development e Expansion

g EconomiW 2

Plant Protection

Production

oan of Wae Of Soi ofTanmgrto

-- Development Managrrent Conservation

World Bank -25230

- 114 -

INDONESIASECOND PROVINCIAL IIRRIGATION DEVELOPMENT PROJECTOrganization and Management for Land Development

Ministry of Ministry ofMRV Agriculture Home Affairs

NATIONAL I i I

LEVEL DG DG D - - -G - Management

5GWRD _ _ 24 c ~ F AG;I j (Team Pengendali)

Directorate of rIrrigation BRI DAD ARARIA

(BINLAK 11) _

rGovernor ofProvince

I _I

PROVINCIAL _ ,i LEVEL Provincial Provincial I Provincial Development

Irrigation BRI | Department of Provincial _ Team

Services Office j | Agriculture Agrarl (Team Pembina)

ProjectManagerDiperta

KABUPETANLEVEL

~ Reional |lKConstruction

Project Office | Locl Branc] Land Development rce _ Team

DGVWRD BRI Project Office Agraha (Team Pelaksana)

I . ( ffi ^I I

I l l l I ~~~~~~~~~~~~~Site Offie h Project for

Site Office | Development

KECAMATAN & IDESA LEVEL

Legend

Line of Authority… - - - --- Technical & Supervision As;istancE

World Bank-25079

- 115 -


Phasing of the ActMties for Imigation and Land Development

IRRIGATION AGRICULTURE LAND TITLESDGWRD DGFCA AGRARIA

(PRIS/SDPD) (DAAD)

Signing of Contractfor Surveys& Design

I Surveys& Design | | Signing of Controct1 2,000 Scale Map for Surveys

Topomap (1: 5.000)with Bench Marks

-- -- a- - -- -- -

Layout &SURVEYS Checkof Surveys

Tertiary Blocks Lan SceLand Use

~~"~~'~~' ~~ Plans.- - - - - -Pn

Strip Surveys I Land Development Land Use Plans

for Canals s Plans

t eriay lok ayut" __ __I Mobilization PlanseriacBocLyotafor Cadastral_ . _ * _ . _ . _

Surveys. Signingof Contract

refinancingArrangements (BI)

Land Owrership Plans Cadastral

Patterns Surveys

|Assembzing of ||Farmers Groups

Design of Main Tertiary & Interactions LandSystem & Quartencry . - _ | Development

Special Structures Canal Design DesignsDESIGN '

l ~ ~~~~~ ~~~~~~~~~~~~ Interac tionsFinal Design Final Designs Interactions Land

Bill of Quantity & Plans Certificates

Main System

Construction f L Operational Land Clearing Creditruct…' ona nf Conversion

Main System Stacking etc) (BRI)Constructionof Tertiary &

CONSTRUCTION Quartenary Canals Water for

Final Leveling Land Leveling| b t ~~~~~& Formation

Legend

Line of Authority

Line of Technical Assistance

- -. -- - -L Lines of Coordination

World Bank-25081

- 116 -

INDONESIASECOND PROwlNCIAJ. IRRIGATION DEVELOPMENT PROJECT

Implomentation Schedule

19h3 | 19h4 1985 1986 1987 1988

CALENDYEAR 1W2M 3 4 5 617 8l9 j 11 12 16713454l11111 |231425164718|98911 1234566189 1 1 23 4 6 89 2I114 1ACTMTY INDONESIAFY 19h3 1984 1 1985 196 19S7 1988

IBRDEY 1983 1984 1985 1986 1987 1988

I PRIS INSTIUTIONAL STRENGHTENING _ T 1I Staff ncreases I 26) 7 4) iL9 _ (,)(7

IR & 81E (Nos) W(20) *| ) = 3 =

2 Buildings Constnucton J -_ -

3 EqulpmentProcurernent J

4. Consultant Services

DGWRD * 1 m I t M I

5. Trolning Ccurses

24 24 24 24 24 24

- IR & BIE -72 'a7) im(2

- STM (Nos Trcined) I iN IN

Consultant I4-IS & 8IE B *(

It DAAE INSTEITUIONAL STRENGHTENING

6 iJPP Bullding

7. Equipment Procurement

UP9 Office,J

Land Cleanng

Water Mana7gement |

8. Consultant SeAces

Local

- Lron ClearIng

ForeIgn

- Land Cleanlng

- Water Management

9. Training

Formal mo M ' l | II] KECIL PROGRAMI -

Construction (1984/85 - 86/87) n Development

Nort, Suiawmsi(4080 ha ) .4 i- ~ l l l L ;|inid sDevelopme°nM iti

Central SulOwesi (6280 ha) J m m r _9 | | | li|i liii IEE I.

South Surawesl (7140 ha) | i im Bi ll, 11 1 1 | iii *ioll

South East Sulawes (3600 ha) J | Vt O 9 logo

South Surnatera (1260 ha) | | I I l _ -IIh1 I lii l ihiJIlS

Rtau (252 ha) | I I __i lONIO li liii

West Sumtera (5280 ha) l ol - E m r| iT * * *m*I * * .1mmi IBengkulu(3780 ha) lisp mm rn - rn Irn mm umai miii mm.... ii 4mm m ii

iV SEDANG PROGSAM

Construction (1984/85 - 86/87)irn ml mu rn 1 - - urn ~~~~~~~~~~~~ond Developmnent

Centrai Sulwesi (4000uha) | m | :: m9 Tliii

South Sulavesi (6700 ha) | S i- - | | | | |_ _ " '"

West Sumatera (5600 ha) [ i - i li 11111 i i i

Bengkulu (9900h) h : : -_ ur mm I -_n |m |i mmmi

go 9 Tencens or Recruitment

Services

- Consnucn aWord Bank - 25231

IBRD 17295R

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