BOARD

OF

ASIAN DEVEWPMENT BANK

DIRECTORS

RESTRICTED

IN. 134-9215 July 1992

PROJECT COMPLETION REPORT

The following Project Completion Report is attached

for information:

Brackishwater Aquaculture Development Project(Indonesia) (Loan No. 598-INO)

R ESTR 1CTE D

PCR:INO 15018

ASIAN DEVELOPMENT BAI( This Report has been prepared forthe exclusive use of the Bank.

PROJECT COMPLETION REPORT

OF THE

BRACKISHWATER AQUACULTURE DEVELOPMENT PROJECT(LOAN NO. 598-INO)

IN

INDONESIA

July 1992

BAPPENASBRIDCFE IRRFAOFIRRI GBISKII(KMKPLCBPBMEPIUPMOPMUPPLPPS

WUC

CURRENCY EQUIVALENT

Currency Unit - Rupiah (Rp)

Appraisal Report(October 1982)

$1.00 - Rp 671.25

Rp 1.00 - $O.00148

Project Completion Report(November 1991)

$1.00 - Rp 1,982

Rp 1.00 $O.000504

(i) The exchange rate of the rupiah is determined by the Bank ofIndonesia under a system of managed float.

(ii) In this Report, the rate of $1 - Rp 1,740 has been used; this isthe average exchange rate applicable to the implementation periodof the Project.

ABBREVIATIONS

(i)(ii)

National Development Planning AgencyBank Rakyat IndonesiaDirectorate General of FisheriesEconomic Internal Rate of ReturnFood and Agriculture OrganizationFinancial Internal Rate of ReturnInternational Competitive BiddingInternational ShoppingSmall Investment CreditPermanent Working Capital CreditLocal Competitive BiddingProject Benefit Monitoring and EvaluationProject Implementation UnitProject Management OfficeProject Management UnitPenyuluh Perikanan Lapangan (Extension Worker)Penyuluh Perikanan Specialis (Extension SubjectMatter Specialist)Water User Group

MEASURES

ha - hectarekm - kilometerm - metermt - metric tonsq km - square kilometer

NOTES

The fiscal year (Fl) of the Goverrunent ends on 31 March.In this report, "$" refers to US dollars.

PCR:INO 173

PROJECT COMPLETION REPORT

OF THE

BRACKISHWATER AQUACULTURE DEVELOPMENT PROJECT(LOAN NO. 598-INO)

IN

INDONESIA

July 1992

Note: This Report was prepared by a Bank Mission consisting of M, Higuchi (SeniorFisheries Specialist/Mission Chief) and V. K. Mehta (Staff Consultant/ FisheriesEconomist). The Mission visited Indonesia from 18 to 30 November 1991.

(i)

TABLE OF CONTENTS

Page

MAP 1 - Location of Project Sites

(ii)

MAP 2

(iii)

BASIC DATA

(lv)

1

1I2

I. PROJECT DESCRIPTION

A. Objectives, Rationale and ScopeB. Implementation ArrangementsC. Modifications During Implementation

II

EVALUATION OF IMPLEMENTATION

A. Project ComponentsB. Project CostC. Project Implementation ScheduleD. ProcurementE. Performance of Consultants, Contractors

and SuppliersF. Conditions and CovenantsG. DisbursementsH. Environmental ImpactI. Project BenefitsJ. Financial and Economic EvaluationK. Performance of the Borrower and

Executing AgenciesL. Performance of the BankM. Lessons Learned

III

CONCLUSIONS AND RECOMMENDATIONS

A. ConclusionsB. Recommendations

APPENDIXES

2

27S8

999

101011

111212

13

1314

17

4• -1

0

Lasigna -

•1

•1

(

\ 1

-eanetua

LEGEND:

£ Project Haithery (Corrytated)

PronciaI Boundary(not necansarily authontative)

PROJECT SITES IN ACEH

(ii)

- INDONESIABRACKISHWATER AQUACULTURE DEVELOPMENT PROJECT

• at Project Completion (1991)- __________________________

110 I3O

2 Aceh Sowh Ch&a sra Pactflc Ocsee

Weat Java Ce Irrl0 0 200 400 600 800 Java Java

I0Ions4.,sLEGEND:

J,dianOcew

ProvirtQial Boundary

InternaIona1 Boundary(not fleceaSOFdy authoritairre)

/Luwu,

Pare

? BonL

LEGEND:

Ujung Pandan9J

0 100 200

tomer5

1ataflone1 4

A Project Hatchery (Completed) Bantaeng fl

-- Povinciai Boundary Benteng JAVA SEA(not rrecassarily authonitatire)

PROJECT SITES IN SOUTH SULAWESt

12

v-I

Ujang BatoBeside ACeh'

51911 -___

Lhokseumawe

Pasauran . urang) JAKARTA

IA

O8

KaupaterIndramayu

yu. KabupatenSubarrg

(iii)

CirabouS

Kabupaten mCirebunJ

c

LEGEND

Canal RehabiIitatirr Area Corrçleted)

£ Hatthøry (CornpIete)

-. - -- ProvmcaI BoundaryInot necessarily authcritahvel

I ou

(iv)

BASIC DATA

A. Loan Identification

1. Country2. Loan Number3. Project Title

4. Borrower5. Executing Agencies

6. Loan Amount

B. Loan Data

1. Appraisal- Date Started- Date Completed

2. Loan Negotiations- Date Started- Date Completed

3. Date of Board Approval4. Date of Loan Agreement5. Date of Loan Effectiveness

- In Loan Agreement- Actual

6. Closing Date- In Loan Agreement- Number of Extensions- Actual

7. Terms of LoanInterest Rate- Maturity- Grace Period- Commitment Charge

8. Terms of RelendingInterest Rate- Maturity- Grace Period- Second-Step Borrower

9. Disbursements

(a) Dates

Initial Disbursement25 April 1984

Effective Date10 May 1983

Indonesia598-INOBrackishwater AquacultureDevelopment Proj ectRepublic of IndonesiaPart A - DirectorateGeneral of Fisheries (DOF)Part B - Bank Rakyat Indonesia(BRI)

$23,000,000

01 July 198204 August 1982

11 October 198213 October 198211 November 198224 November 1982

22 February 198310 May 1983

31 March 1990Two01 July 1991

11% per annum20 years5 years

O.75Z per annum

11% per annum15 years5 years

Bank Rakyat Indonesia

Final Disbursement

Time Interval01 July 1991

87 months

Original Closing Date Time Interval31 March 1990

85 months

6,303

1,348

2,500

2,526

400

3,438

0

92

430

813

74

143

470

0

0

18.537

6,008

1,312

2,254

2,634

397

3,356

0

90

549

813

74

143

432

0

0

18.062

Last NetRevised Amount Undisbursed

Allocation Disbursed Balance

295

36

246

(108)

3

82

0

2

(119)

0

0

0

38

0

0

475

(v)

(b) Amount (in $'OOO)

Category

WA Civil Works - CanalRehabilitation (Part A)

OIB Civil Works - Hatcheries(Part A)

02 Consulting Services(Part A)

03 Equipment, Materials,Facilities (Part A)

04 Training and Fellowships(Part A)

05A Local Exp. - Canal Rebab.Civil Works (Part A)

05B Local Exp. - Local Training(Part A)

05C Local Exp. - Consulting Services(Part A)

05D Local Exp. - Civil WorksCanal Rehab. (Part A) LCFOP

05E Local Exp. - Civil Works(Hatcheries) LCFOP

05F Local Exp. - Local TrainingLCFOP

05G Local Exp - ConsultingServices LCFOP

051 Local Exp. - Hatchery,Civil Works (Part A)

06 Credit Facilities for

07 Unallocated (Parts A and B)

Total

OriginalAllocation

5,973

1,194

2,970

967

384

4,000

0

0

0

0

0

0

0

1,594

5,918

23.000

Appraisal

Revised

Actual

4,000

5,460

5,457

13%

31%

48%

8%

18%

23%

(vi)

10. Local Cost (Bank-Financed)

- Amount ($'OOO)- Percentage of Local Costs- Percentage of Total Costs

C. Project DataAppraisalEstimate Revised Actual

1. Project Cost ($'OOO)

- Foreign Exchange Cost

19,000

13,077 12,605- Local Cost

31.000

17.865 11.320- Total Cost

50,000

30,942 23,925

2. Cost Breakdown by Project Component ($'OOO)

Appraisal Estimates Revised ActualForeign Local Total Foreign Local Total Foreign Local Total

Part A:

(a) Canal Rehabilitation(b) Hatcheries(c) Extension Services(d) Training, Fellowships and

Project Management(e) Consulting Services(0 Project Benefit Monitoring

and Evaluation

Base CostPhysical ContingencyPrice Contingency

Subtotal for Part A

Part B:

(a) On-Farm Development(b) Pumping Scheme

Base CostPhysical ContingencyPrice Contingency

Subtotal for Part B

Total for Parts A & B

5,973 4,632 10,605 6,303 4,632 10,935 6,008 5,538 11,546

1,789 2,486 4,275 1,348 2,486 3,834 3,598 3,229 6,827

306 1,633 1,939 306 1,633 1,939 304 88 392

450 960 1,410 2,620 960 3,580 441 1,162 1,603

2,970 908 3,878 2,500 908 3,408 2,254 1,260 3,514

100 100 _J2 100 100 .....J! _4 _4

11,488 10,719 22,207 13,077 10,719 23,796 12,605 11,320 23,925

1,723 1,608 3,331 0 1,608 1,608

3.466 i538 9.004 __j_____ -

16,677 17,865 34,542 13,077 17,865 30,942 12,605 11,320 23,925

1,594 6,913 8,507 0 0 0 0 0 00 856 856 0 0 0 0 0 0

1,594 7,769 9,363 0 0 0 0 0 0

239 1,165 1,404 0 0 0 0 0 0

490 4201 4.691 0 0 0 0 0 0

2,323 13,135 15,458 0 0 0 0 0 0

19,000 31,000 50,000 13,077 17,865 30,942 12,605 11,320 23,925

(vii)

3. Financing Plan ($'OOO)

Appraisal Estimates Revised ActualForeign Local Total Foreign Local Total Foreign Local Total

- Bank-Financed

19,000 4,000 23,000 13,077 5,460 18,537 12,605 5,457 18,062

- Borrower-Financed - 27.000 27.000 - 12.405 12.405 __ 5.863

Total

i9AiOO 31.000 50.000 13.077 17.865 30.942 12.605 11320 23.925

D. Data on Bank Missions

No. of No. ofType of Mission

Date

Persons Mandays Mission Members

1. Appraisal

01 July 1982

6to 04 Aug. 1982

2. Inception

14-17 June 1983

I

3. Special Loan

20-28 Oct. 1983

IAdministration

4. Review&

08-15 Nov. 1984 3

5. TA Administration 06-09 Feb. 1985 1

6. Review 09-10 Aug. 1985 1

7. Special Loan 09-14 Sept. 1985 1Admini strati on

35 Aquaculture Specialist

35 Aquaculture Engineer

35 Financial Analyst

13 Country Officer

13 Fisheries Specialist

13 Counsel

4 Sr. Aquaculture Specialist

9 Sr. Aquaculture Specialist

8 Sr. Aquaculture Specialist

8 Aquaculture Specialist

8 Sr. Clerk - Loan Adnin.

4 Economist

2 Sr. Aquaculture Specialist

6 Sr. Aquaculture Specialist

/ The Mission also carried out preparation of PPTA for Second BrackishwaterAquaculture Development Project.

k/ The Mission also acted as co-administrator of Regional Training Course in FishHandling and Quality Control and also reviewed the Fisheries InfrastructureProject (Loan No. 693-INO).

/ The Mission also reviewed the PPTA for Second Brackishwater AquacultureDevelopment Project.

d/ Combined with a TA Review Mission for the Second Brackishwater AquacultureDevelopment Project (TA No. 661-INO).

• 8. Review0j

9. Special Loan- Administration!d'

10. Review

11. Review

12. Review

13. Review

14. Review

15. Special LoanAdministration

16. Review

17, ProjectCompletionReportPreparation

(viii)

No. of No. ofType of Mission

Date

Persons Mandays

Mission Members

1

2

1

2

1

1

1

1

1

2

06 Aug. 1986

09-13 Aug. 1986

10 Dec. 1986

09-27 Mar. 1987

30 Nov. 1987to 14 Dec. 1987

12-26 Dec. 1988

02-20 Oct. 1989

22 Feb. 1990to 08 Mar. 1990

31 Mar. 1991to 13 Apr. 1991

18-30 Nov. 1991

Total

1 Sr. Aquaculture Specialist

5 Financial Analyst

5 Sr. Loan Admin. Specialist

1 Sr. Aquaculture Specialist

19 Fisheries Specialist

19 Sr. Clerk - Loan Admin.

15 Sr. Project Economist

15 Sr. Project Economist

19 Fisheries Specialist

15 Fisheries Specialist

14 Sr. Fisheries Specialist

13

Sr. Fisheries Specialist13 Consultant (Fisheries

Economist)

347

/ Review was carried out during a Fact-Finding Follow-Up Mission for the SecondBrackishwater Aquaculture Development Proj ect.

V The Mission reviewed the Government's budgetary allocations for FY 1986/87 -FY 1987/88 for all ongoing Bank-assisted fisheries and livestock projects andassessed overall local currency requirements up to March 1988.

/ Review was carried out during a Fact-Finding Follow-Up Mission for the SecondBrackishwater Aquaculture Development Project (TA No. 661-INO).

h/ Other projects covered by the Mission were Second Irian Jaya FisheriesDevelopment Project (Loan No. 566-INO) and Second Brackishwater AquacultureDevelopment Project (Loan No. 959-INO).

I. PROJECT DESCRIPTION

A. Objectives Rationale and Scope

1. The major objectives of the Project were to: (1) increase theproduction of shrimp and milkfish from brackishwater aquaculture; (ii) improvethe socio-economic condition of small-scale tambak (brackishwater fish pond)farmers by providing them employment opportunities and by raising their incomelevels; and (iii) generate foreign exchange through the export of shrimp as partof the Government's policy of expanding non-oil export earnings.

2. The rationale for the Project was to utilize the country's extensivebrackishwater resources through development of tanibak aquaculture, to increaseshrimp production from tambaks to offset the decline in shrimp catch caused bythe trawling ban and to increase non-oil exports. At Appraisal in 1982, therewere about 180,000 hectares (ha) of tambaks producing some 95,000 metric tons(mt) of fish and shrimp, and about 60,000 families engaged in tambak aquaculture.Traditional culture techniques were followed and the yields were as low as 400-500 kilograms (kg) per ha annually (compared with an achievable potential of 650-1,000 kg per ha a year) including a large portion of low-value species. The lowtambak yields were due mainly to poor management practices, such as reliance onavailable wild fish fingerlings and shrimp post larvae, insufficient fertilizerand feed, and poor water management because the water channels supplying thetambaks were badly silted and inadequately maintained.

3. The Project was designed to help minimize these constraints toproduction, particularly for the smaliholder tambak farmers in West, Centraland East Java, South Sulawesi and Aceh provinces, where the greatest potentialexisted for increasing production. The Project consisted of two parts. Part A,to be executed by the Directorate General of Fisheries (DOF), included(1) rehabilitation of about 280 kilometers (km) of primary and secondary canalsservicing about 19,780 ha of tambaks in Java; (ii) establishment of five shrimphatcheries (three in Java and one each in South Sulawesi and Aceh) each with anannual production capacity of 40 million Penaeus inonodon post larvae; (iii)provision of extension services, including recruitment and training of extensionworkers, and provision of equipment and material support; (iv) provision of 174man-months of training through 27 fellowships abroad and 1,100 man-months oflocal training to 250 extension workers; and (v) provision of about 240 man-months of consultant services in the fields of brackishwater aquaculture, pondengineering, training/extension and shrimp hatchery management; and (vi)provision for project benefit monitoring and evaluation (PBME). Part B, to beexecuted by the Bank Rakyat Indonesia (BRI), included the provision of creditto selected aquaculture farmers for (i) on-farm development of 11,800 ha in East,West and Central Java; and (ii) for establishment of a pumping scheme fordevelopment of 2,000 ha of tambaks in Central Java.

B. Implementation Arrangements

4. The Directorate General of Fisheries (DGF) and Bank Rakyat Indonesia(BRI) were the principal Executing Agencies. In May 1983 a Project ManagementOffice (PflO) was established by DGF in Jakarta, which was headed by a ProjectDirector. In September 1984 PMO set up five branch offices in East Java, WestJava, Central Java, South Sulawesi and Aceh. All the offices were adequately

staffed by 45 qualified technical and administrative personnel. In addition,five Project Implementation Units (PIUs) with 110 extension workers wereestablished, three in East Java and two in Central Java. A Project CoordinatingCommittee comprising of DGF, BAPPENAS, 11 Bank of Indonesia, Ministry of Finance,Directorate General of Water Resources, Agrarian Office, Ministry of Cooperativesand concerned Provincial Fisheries Services was established in May 1984. Thefirst meeting was held in September 1984, but the committees met only three timesduring Project implementation.

C. Modifications During Implementation

5. The Project underwent three major changes during implementation,which included: (1) provision of additional local cost financing totalling $3.1million to meet the shortfall (due to sharp decline in world oil prices in lastquarter of 1985) in counterpart funds for FY 1986/87 and FY l987/88V; (ii)cancellation of the credit components amounting to $2.323 million effective 31March 1989 at the Government's request; and (iii) extension of the loan closingdate by one year to 31 March 1991 so that the Project scope could be expandedto include an additional 50 km of canal rehabilitation in West Java, which theBank approved in March 1990.

II. EVALUATION OF IMPLEMENTATION

A. Project Components

6. The Project consisted of two parts: Part A, canal rehabilitation,establishment of hatcheries, extension services, training and fellowships, andconsultants; and Part B, credit components. A comparison of the original scopeand the actual performance is in Appendix 1. An evaluation of the implementationthese components is given below:

1. Part A

(a) Canal Rehabilitation

7. Compared with the rehabilitation of 280 km of primary and secondarycanals envisaged at Appraisal, 330 km of canals were actually rehabilitated atthe time of Project completion comprising 93 km in West Java, 142 kin in CentralJava and 95 km in East Java. Construction of appurtenant structures, which wasnot clearly mentioned in the original scope, was also carried out including 37.7km of roads, 27 car bridges, 443 foot bridges, 164 culverts, 73 large gates, twosea water control gates, 3,964 small water control gates, 263 m of drainagecanals and two pumping stations.

1/ National Development Planning Agency.

21 Indonesia: Proposal to Meet Shortfalls in Local Currency Requirements ofCertain Ongoing Projects in Sectors other than Irrigation Through(i) Reallocation of Loan Proceeds with or without Change in Scope of theProjects; and (ii) Accelerated Loan Disbursements. The paper was submittedon 7 November 1986 for Board consideration and approved by the Bank on14 November 1986.

1

8. The designs for canal rehabilitation were undertaken by nine localdesign engineering firms and the construction works were carried out by 29 civilcontractors. During implementation several problems were encountered including:(i) lack of counterpart funds and delays in land acquisition; (ii) change indesign after construction had started, resulting in work stoppages until thenew design was finalized; (iii) delays in recruitment of laborers for civilworks and in the supply of equipment by the contractors; (iv) unrealisticcontractors' work schedules; and (v) disruptions in construction activitiesduring the rainy season. As a result, the implementation of the canalrehabilitation was delayed by two years.

9. The canal rehabilitation included widening of the canals fromexisting 2-3 m to 8-14 m under the Project and increasing their depth from 0.5-0.7 m to 2-3 m. The benefits from rehabilitation work were that: (i) tambakfarmers were able to work their ponds throughout the year and to obtain at leasttwo production cycles each year; (ii) water intakes for the tambaks wereimproved; (iii) better quality and quantity of water made shrimp culture possibleinstead of milkfish culture; (iv) existing less productive paddy fields wereconverted into tambaks; 1 and (v) shrimp yields improved significantly.

10. Over 10,000 fish farmers in the Project area with 22,400 ha oftambaks (6,393 ha in West Java, 6,727 ha in Central Java and 9,280 ha in EastJava) have benefitted. The DGF/PMO survey of 110 tambak farmers with an averagefarm size of 2.6 ha on the improved canals indicated that: (i) although theyield/ha/year differed from area to area, on average, production doubled from588 kg/ha/year to 1,105 kg/ha/year and the product mix was better because ofthe higher shrimp content for which the value was higher; and (ii) the revenuefrom an average farm sales/ha/year increased by more than seven times from Rp1,1 million to Rp 8.1 million (see Appendix 2).

11. The operation and maintenance (0&.M) for 280 km of the rehabilitatedcanals was transferred to the respective provincial governrnentsV in 1990. Thetransfer of the remaining 50 km of improved canals in West Java is currentlybeing processed. The DCF prepared a technical manual containing guidelines onO&M of the canals for the concerned provincial government officials. Based onthe technical manual, water user groups (WUGs) have been organized in East Javaand West Java and are still to be organized in Central Java. WUGs under theguidance of the provincial governments are responsible for routine maintenanceof the rehabilitated canals and their performance has been satisfactory. To

1/ This was done in areas where rice yields were very low (generally as lowas 3.0 mt/ha/year) due to salt water intrusion into the paddy fields.The conversion was motivated by economic considerations as the income ofProject shrimp farms was Rp 8.1 million/ha/year (ex-farm price of shrimpis over Rp 8,000/kg) which was substantially higher than that of paddiesof Rp 750,000/ha/year (ex-farm price of rice is Rp 250/kg). Food securityin the areas was not affected as only less productive rice paddies wereconverted into shrimp farms.Loan Agreement, Schedule 6, para. 16 (a) and (b). The transfers took placethrough three separate agreements between DGF and the respective provincialgovernments. The agreements were signed by the provincial governments ofWest Java and Central Java on 11 May 1990 and by the provincial governmentof East Java on 25 June 1990.

4

assist the UCs in routine operation and maintenance, funding is currentlyprovided by the provincial governments as well as by the Central Government onan ad hoc basis.

(b) Hatcheries

12. The site investigations including topographical surveys and soiltests for the five shrimp hatcheries 1" were undertaken by five local engineeringfirms between February 1985 and July 1986. Detailed designs for the hatcherieswere prepared by the consultants who were engaged in June 1984 (see para. 20).Construction of the hatcheries was completed by nine contractors between April1987 and October 1989. Because of difficulties in land acquisition at all thehatchery sites, the design and construction of the hatcheries took almost fiveyears compared with the three years envisaged at Appraisal. The Installedcapacity of each hatchery is 60 million shrimp fry production a year comparedwith the annual production target of 40 million fry envisaged at Appraisal.

13. The initial production of the hatcheries (when they were operatedby DGF) averaged 12.3 million shrimp fry a year, which was far below theAppraisal target 40 million fry (see Appendix 3, Table 5). The main reasonsfor the poor initial performance of the hatcheries were: (i) limited operatingfunds; (ii) difficulties In finding the appropriate number of mature broodstock;and (iii) lack of demand for shrimp fry.

14. The DGF tried to comply with the loan covenant on privatizinghatchery operationsV. However, no private company was interested in an outrightpurchase at that time; so DCF entered into joint operation agreement with aprivate company. DGF signed a cooperation agreement, which was governed byMinister of Agriculture Decree number 97/Kpts/OT.210/2/1988, on 31 March 1990with a private company for five years commencing 1 April 199O. The mainfeatures of the agreement were that DGF will provide: (i) production facilitiesat five hatcheries, (ii) core hatchery personnel and supporting staff, (iii)buildings and equipment, (iv) land covered by a Right of Way Certificate, and(v) other supporting utilities; and the private company will provide (i) entireoperating costs; and (ii) other hatchery facilities, equipment and staff ifneeded; and the net profit, sales proceeds less production expenses, will bedivided equally between the DCF and the private company. A joint team was formedto supervise the operations at the five hatcheries. The Bank examined the DGFscooperation agreement for management of the hatcheries and expressed reservationsabout the terms which were less favorable to the Government than to the privatecompany. It, however, finally approved the agreement taking into account thecircumstances and inability of DCF to be able to negotiate better terms.

1/ The hatcheries were in (i) Situbondo, East Java; (ii) Barru, SouthSulawesi; (iii) Caringin, West Java; (iv) Lamnga, Aceh; and (v) Tuban, EastJava.

,/ Loan Agreement, Schedule 6 Paragraph 17(b)./ Actually the joint operations commenced at the end of June 1990.

Subsequently in October 1991 the operations of the hatchery at Caringin,West Java were transferred to joint operations with another privatecompany, which is already managing one hatchery financed by the Departmentof Finance in the same district.

5

15. The latest annual production of shrimp fry at these hatcheries underthe cooperation agreement averaged 47.1 million per hatchery (see Appendix 4),four times the level of production when DGF operated the hatcheries. It met theappraisal target, but was still below the capacity of 60 million, primarilybecause of disease problems, mainly luminescent vibriosisV . The benefits arealso below the estimates because of decline in selling prices of shrimp fry(Rp 10 per fry), which is nearly half the price assumed at Appraisal. Despitethese constraints, the hatcheries are generating profits of Rp 340 millionequivalent to $179,000 (see Appendix 3, Table 1) before depreciation. Theseprofits are shared equally between the DGF and the private company. However,while the company is making a net profit, the DGF cannot recover even thedepreciation on investment cost from its share of profits. Yet, the jointoperation with the private company has substantially improved the performanceof the hatcheries and increased production at no cost to the Government.Furthermore, the Project hatcheries through their demonstration effect haveencouraged similar undertakings in the private sector. This has led to a wideruse of modern hatchery methods and has also helped DGF ease the fishing pressureon the supply of wild shrimp fry as shrimp farming expands and the demand forthe fry grows.

(c) Extension Services

16. Because of the cancellation of RI credit component (see para. 21)and the consequent reduction in the requirement of extension workers for tambakdevelopment under Part B of the Project, 110 extension workers (half of theAppraisal target) comprising 5 extension subject-matter specialists (PPSs) and50 extension workers (PPLs), and 5 senior technicians (STs) and 50 engineeringtechnicians (ETs) have been recruited and trained in pond aquaculture andengineering under the Project. To ensure the effective and successful extensionactivities in the field for these extension workers, three project implementationunits (PIUs) and 30 project management units (PMUs) in Central Java, and two PIUsand 20 PMUs in East Java have been established. The Project also has providedtraining and field survey equipment to improve the effectiveness of the extensionservices.

(d) Training. Fellowships and Prolect Management

17. A total of 174 man-months of foreign training provided under theProject was completed by June 1987. Two Project management offices (PMOs)officers were given training during 1986-87 at the University of Hawaii for12 months each in the fields of brackishwater aquaculture and civil engineering.Training for hatchery managers and technicians was carried out in two groups.

1/ Luminescent vibriosis caused by Vibrio sp. has been identified as the mostserious bacterial disease in penaeid shrimp hatcheries. Mortalities inthe early stages of the shrimp larval development (zoea and mysis stages)have been commonly reported in Indonesia.

/ The aquaculturist and the civil engineer were given fellowships at theInstitute of Marine Biology and the University Agricultural EngineeringDepartment of the University of Hawaii.

6

After a two week in-country orientation the first group of 13 hatcherytechnicians and managers was trained in the Philippines 1 and Hawaii. V For thesecond group of 12 trainees, the first phase of the training w.is in thePhilippines and the second phase of the training was in Taiwan.'

18. As hatchery facilities became available within the country, overseastraining was no longer necessary and five local training courses for hatcherytechnicians were completed. Each course was five months long for 12 traineeswith practical hands-on training in a producing commercial or Project hatchery.All the training programs and curriculum development were designed andimplemented by a consulting team. The goal of the training was for the traineesto develop a production orientation and not a research orientation towardshatchery operations. Sixty hatchery technicians were trained for five monthseach compared with training envisaged at Appraisal of 30 hatchery techniciansfor six months each. The training was quite successful and has had a significantinstitution building effect by strengthening the Project implementation capacityof DGF, and by improving the quality of extension services.

(e) Consu1tin Services

19. The consultancy contract was awarded on 5 March 1984 to aninternational consulting firm in association with a local consulting firm. Theconsultancy agreement was extended/modified four times (on 29 April 1985, 1 April1986, 14 March 1988 and 12 June 1989). During the course of implementation, themajor increases were In the services of the pond engineer and hatchery designengineer. Compared with the Appraisal estimates of 36 man-months for the pondengIneer and of 18 man-months for the hatchery design engineer, their actualservices were 92.4 man-months and 44.6 man-months, respectively. The foreignpond engineer only worked for nine months and was replaced by local consultantswith a lower remuneration. All consultancy services were completed by October1989. A total of 367 man-months of consultancy services were utilized ascompared with the 270 man-months envisaged at Appraisal. A breakdown by man-months of the consultancy is given In Appendix 1.

20. The hatchery design engineer carried out detailed designs for allfive hatcheries, although this was not included in the terms of reference.However, because of the sophisticated design, the hatcheries incurred highconstruction cost and some deficiencies, These deficiencies included: (i)inadequate water intake systems which caused the intake pipes to foul withbarnacles and high levels of silt pumped into the reservoirs during the rainyseason; (ii) no provision for sunlight or darkness when needed in the maturationtanks; (iii) number of maturation tanks exceeded the requirements; (iv)inappropriate designs for larval rearing tanks for the first two hatcheries,which were difficult to manage and inefficient and uneconomic in terms ofsurvival rates and feed; and (v) no modular system for larval rearing tanks toprevent the spread of disease.

)/ Four months internship at the Jamandre Hatchery in Iloilo.

2/ Six weeks course at the Oceanic Institute in Hawaii.

./ Six weeks training at the Frippak Hatchery at Kaoshung, Taiwan.

7

2. Part B

21. Part B of the Project was a credit component, to bE. implemented byBR1 to support smallholder shrimp monoculture in Central Java and East Java aswell as water pumps for tambaks in Central Java. During implementation, theGovernment requested that the credit component be cancelled because: (i) mosttambak farmers did not have proper land titles to offer as collateral; (ii) BRIwas already operating different smaliholder agriculture credit schemes 1 whichcovered tambak farmers and both BRI branch managers and tambak farmers preferredutilizing these general credit schemes (particularly the pumping scheme); and(iii) many tambak farmers in the Project area had direct access to informalcredit from village financiers and shrimp traders/cold storage operators.

22. According to a survey conducted by DCF/PMOV covering 110 farmerswhose tambaks are located along the canals improved under the Project in CentralJava and East Java, about 57 per cent of them used credit facilities. Theaverage loan size was Rp 11.3 million; of the loans, 54 per cent were used forphysical improvements and 46 per cent for working capital. The percentage offarmers owning pumps (which was a major credit category under the Project) hasincreased from 2 per cent before the Project to 74 per cent at the end of theProject. The credit sources were: BRI, 71 per cent; Bank Pengembangan Daerah,21 per cent and traders/cold storage operators, 8 per cent.

23. According to the PBME survey report 1 , tanibak farmers had alsoobtained informal credit from fish/shrimp traders who eventually bought thefarmers' produce or from the suppliers of inputs who give shrimp fry,fertilizer, and pesticides to the farmers on credit. Although the interest oninformal credit was much higher (36 per cent per annum) than that ofinstitutional credit (12 per cent per annum), the farmers using informal creditpreferred its comparative simplicity and almost instant disbursement in contrastto the complicated and time-consuming procedures of institutional credit.

B. Project Cost

24. The details of Project cost compared with the Appraisal estimatesare given in Appendix 5. Because Part B was cancelled, the actual overallProject cost was $23.925 million or about 48 per cent of that estimated atAppraisal ($50 million). Even when the costs of Part B were excluded from theAppraisal estimates, there was 31 per cent cost underrun for Part A. The main

]J The cost of Part B of the Project was $l5.458 million of which Bank wasto finance $2.323 million (entire foreign exchange cost) or 15 per cent,and BRI and its sub-borrowers were to finance $l3.l35 million or 85 percent.

/ Aquatic Farms Ltd. in association with Amythus Experts & Associates:Brackishwater Aquaculture Development Project, Final Report Vol. 1-3, 31October 1989.

3/ PT. Mirazh: Project Benefit Monitoring and Evaluation (PBME) onBrackishwater Aquaculture Development Project, Final Report, March 1990.

J A large number of tambak farmers are given shrimp fry by middlemen and arenot buying it directly from the hatcheries.

8

reasons for the lower than estimated costs were the depreciation of the rupiahand consequent lower local costs in terms of dollars, and an overestimation ofthe physical and the price contingencies at Appraisal. However, the constructioncosts of the hatcheries ($4.7 million) were about one and a. half times theAppraisal estimates ($3.5 million) because of the sophisticated and expensivedesign of hatcheries. Construction costs would have been much lower if: (i)instead of fiberglass, the broodstock and larval rearing tanks had been made fromreinforced concrete and painted with epoxy; and (ii) instead of a double seawatersupply system, a single piping system had been installed with provision forflushing water into the tanks through the system at intervals without disturbingthe regular operations.

C. Prolect Implementation Schedule

25. The actual implementation schedule of the Project is given inAppendix 6. The Project was implemented over eight years (from 10 May 1983 to1 July 1991) compared with the six years estimated at Appraisal. Since the last14 months (1 April 1990 to 1 July 1991) were used for additional canalrehabil 4 tation works [see para. 5 (iii)], the actual delay was about one yearfor the original Project scope. That delay was mainly due to delays in landacquisition caused by insufficient Government budget and in civil worksconstruction because of the shortage of laborers.

D. Procurement

26. About 38 contracts for 330 km of canal rehabilitation were awarded,consisting of detailed engineering designs, construction supervision and civilworks. All the contracts were executed in accordance with the Bank's procurementguidelines following local competitive bidding (LCB) procedures amongprequalified contractors. The initial contracts for canal rehabilitation wereawarded in December 1986. The subsequent contracts were awarded between January1987 and December 1988.

27. About 27 contracts for the five hatcheries were awarded forconstruction supervision, civil works and procurement of equipment and materialsfor hatcheries and for extension workers. The civil works contracts includingconstruction supervision followed the same LCB procedures used for the canalrehabilitation. Except in one caseV, the contracts for supply of equipment andmaterials were awarded on the basis of international shopping (IS) procedure.The contract for civil works for the construction of a hatchery (at Situbondo)was awarded in February 1986. The contracts for remaining four hatcheries wereawarded between March 1986 and September 1988. The contracts for procurementof hatchery equipment were awarded between August 1986 and December 1988.

/ The prequalification procedures in Presidential Decree (KEPRES) No. 29-30/1984 were followed.

21 The contract for $ 247,194 awarded in 1988 for purchase of chemicals,shrimp feeds and hatchery equipment for hatcheries at Situbondo, East Javaand at Barru, South Sulawesi was carried out by LCR instead of IS TheBank approved this procurement as an exception and not as a precedent.

9

E. Performance of Consultants. Contractors and Suppliers

28. As discussed earlier, the performance of foreign a. well as localconsultants was generally satisfactory except for the design of the hatcheries.The consultants assisted PMO in: (i) site selection for canals and hatcheries;(ii) detail design of the hatcheries; (iii) preparation of tender documents andevaluation of bids for design engineering, civil works, construction supervisionand procurement of equipment and materials; (iv) supervision of initialoperations of the hatcheries; and (v) carrying out the training programs underthe Project.

29. The civil works contractors experienced several drawbacks such asinadequate working capital, and shortages of laborers and heavy equipment. Asa result, there were substantial delays both in the rehabilitation of the canalsand in the construction of the hatcheries. The quality of construction was poorin some of the hatchery buildings and other structures, and in some of the canalsrehabilitated. In most cases the defects were noticed and corrected and/orpenalties were imposed 1 . All the equipment and materials for the hatcheries andthe extension work conformed to cost and other specifications. However, therewere some delays in deliveries.

F. Conditions and Covenants

30. The loan covenants have generally been complied with as reflectedin Appendix 7. Some of the shortcomings noticed were: (1) irregular submissionof annual audited financial statements and quarterly reports on progress of theProject; (ii) no FlU and PMU in West Java; (iii) less than targeted achievementsin training of PPLs, PPSs, STs and ETs; (iv) lack of proper land titles fortambak farmers; (v) timely and adequate provision of funds for operation andmaintenance (O&M) of the Project facilities; and (vi) lack of mid-term surveyunder Project Benefit Monitoring and gvaluation (PBME). Subsequently,arrangements were made for 0&M of Project hatcheries in cooperation with aprivate company and a benchmark survey and a final survey of the Project werecarried out as part of PBME.

C. Disbursements

31. Details about disbursements under the Bank loan are given inAppendix 8. The disbursements were made from 1984 to 1991, although the Bankloan became effective on 10 May 1983. About 79 per cent of the actual aggregatedisbursement ($l4.338 million) occurred during 1987 to 1989. The totaldisbursements amounted to $18.062 million, which represent 78 per cent of theBank's original loan amount. Partial cancellation of the loan in the amount of$2.323 million was made upon cancellation of the credit component (Part B) on31 March 1989 and $2.14 million was cancelled on 19 June 1990 because of loansavings. The unused balance of $475,201.25 was cancelled when the loan wasclosed on 1 July 1991. During the course of the Project implementation thefinancing plan was modified six times to accommodate primarily a higher

1/ Some examples of the poor quality of construction are : (i) the mainhatchery building and other structures at Barru where the defects weresubsequently corrected; (ii) canal rehabilitation at Kendal for which apenalty was levied.

10

proportion of local currency financing and changes in Project scope (SeeAppendix 9). Overall, the Bank financed 75 per cent of the actual Project costs.

H. Environmental Impq

32. As envisaged at Appraisal, rehabilitated canals had a strong positiveenvironmental impact on the Project farmers by upgrading the natural productivityof their tambaks without upsetting the balance of the associated agricultural,social or natural environmental systems. There are no major environment relatedproblems under the Project. The civil works involved in rehabilitating canalsdid cause increased water turbidity, but the effect was short-term. Salt waterintrusion into productive agricultural land was prevented by the control gateson the canals. Because the Project was designed to improve the existing small-scale tambaks without constructing new ponds, no damage has been reported to theexisting mangrove areas. Unproductive land (Juwan Pati in Central Java) hasbeen converted into tambaks to benefit from the improved canals. Because theculture technology practiced by the farmers is traditional or semi-intensive,pesticide and harmful chemicals are not used any more. Chicken manure (300-400 kg/ha/a production cycle) is generally used as fertilizer to increase theprimary productivity in the ponds. The effects of fertilizer are indirect andincrease plankton and benthos as fish/shrimp feed in the tambaks. Any excessnutrients discharged are carried downstream through the rehabilitated canals bytidal flushing and absorbed or recycled within the marine ecosystem. The Projecthas not put any pressure on wild stocks of shrimp post larvae because therequired fry for the tambaks is produced in Project hatcheries.

I, Project Benefits

33. Canal improvements coupled with extension effort have resulted inchange of culture practices from traditional to semi-intensive. Thepredominantly niilkfish Chanos chanos based culture has been replaced by shrimpbased culture, either monoculture or polyculture with milkfish. Over 10,000fish-farmers in the Project area operating about 22,400 ha of tambaks havebenefited from better quantity and quality of water from the improved canals.The average yields of tambak farmers have more than doubled and with greatervalue from higher share of shrimp in the farm production mix the average farmsales have increased by about seven times. Incremental production of shrimp inthe Project area is estimated at about 10,680 mt a year. Over 7,000 mt of tigershrimp (about 70 per cent of the incremental production) valued at $30 millionper annum is being exported as a result of the Project.

34. The Project has set up five new hatcheries in four provinces. Thefive hatcheries are able to produce 300 million shrimp fry a year. In the firstyear of operations in cooperation with a private company, the five hatcheriessold 236 million shrimp fry (see para. 15). These fry are adequate to stock morethan 10,000 ha of tambaks yielding more than 5,000 mt of shrimps. The hatcheriesare generating substantial cash surpluses (see Appendix 3), but the FIRR andEIRR are depressed because of the prolonged construction period s disease in thehatcheries, low selling prices and unusually high construction costs (seepara. 24).

11

J. Financial and Economic Evaluation

35. The financial and economic internal rates of return for the Projectas a whole and for two components are given in Appendix 3. A comparison withthose anticipated at Appraisal is in Table 1.

Table 1: Financial and Economic Internal Rates of Return

FIRR EIRRComponent Appraisal PCR Appraisal PCR

Hatcheries 62 3 56 5Canal Rehabilitation 296l 19 22Overall 25 13 26 17

/

Separate calculations were made for monoculture and polyculture, andfor each of the five provinces covered by the Project.

The FIRR for the hatcheries is only 3 per cent1' because of: (1) long time takenfor construction; (ii) construction costs more than four times those estimatedat Appraisal; (iii) low production in the hatcheries in the initial years priorto being jointly operated by private firms; (iv) selling prices of shrimp postlarvae being nearly half of the Appraisal assumption; and (v) actual operatingcosts being higher than those estimated at Appraisal. The tambaks benefitingfrom canal rehabilitation show adequate returns (see para. 10 and Table 7 ofAppendix 3) with a FIRR of 19 per cent and an EIRR of 22 per cent because of thelarge area (224OO ha) that has benefited from the canal rehabilitation. Theoverall Project FIRR and EIRR are still 13 per cent and 17 per cent respectivelyeven though the FIRR and EIRR of the hatcheries decreased substantially.

K. Performance of the Eorrower and Executing Agencies

36. One of the constraints in canal rehabilitation and construction ofhatcheries was the lack of adequate funds for land acquisition, which delayedthe process of land acquisition. Although the PMO and its branch offices wereadequately staffed, engineering expertise were lacking. The Project had to relyentirely on the consultants for all engineering input. Government proceduresfor bid evaluation, contract awards and release of payments were time consuming.

/ Despite the low FIRR, private companies have participated in the jointmanagement of the Project hatcheries (see paras. 14, 15 and 30) becausethey do not have to contribute towards the investment cost of hatcheriesor pay interest on the investment and receive 50 per cent of the profitof the hatcheries before depreciation and interest.

12

As a result there were delays in deliveries of equipment. Limited fundsV wereallocated by the Government for operation of the hatcheries with consequentshortage of both consumable supplies and 0&M staff. The concerned provincialgovernments are now responsible for 0&M of rehabilitated canals and areimplementing it in accordance with the technical manual prepared by DCF. Inpractice, the WUGs under the guidance of the local governments are undertakingdaily O&M of the canals. However because of funding constraints, the localgovernments are having difficulties providing timely and adequate funds toassist the WUCs with routine management and maintenance.

L. Performance of the Bank

37. In carrying out the supervision of the Project, the Bank dispatcheda total of 15 Missions (excluding Appraisal and PCR Missions) involving 177 man-days. The 9 Missions between 1983 and 1986 were multipurpose and included only61 man-days for the review of this Project. Closer supervision and monitoringin the early years would have avoided the deficiencies of hatchery designsdiscussed in para. 20 and resulted in the establishment of the hatcheries atmuch lower cost.

38. The Bank did show flexibility in administering the loan especiallywhen the Government experienced a shortage of counterpart funds because of thesharp decline in world oil prices. Tn November 1986 Bank approved additionallocal cost financing amounting to $3.10 million for the Project to meet localcurrency expenditures. In March 1990 the Bank also responded positively to theGovernment's request to reallocate funds and extended loan closing date by oneyear so the rehabilitation of an additional 50 km of canals could be completed.

M. Lessons Learned

39. In retrospect, it is evident that, the Government was not theappropriate agency for constructing and operating revenue-generating assets.Instead of constructing hatcheries under Government management and subsequentlyprivatizing them it would have been better if the Project had supported theconstruction and upgrading of hatcheries in the private sector. Under privatemanagement, the construction of hatcheries would have been quicker and morecost-effective.

40. In projects involving the acquisition of land, the implementationschedule should make allowance for the time required to acquire the land and theGovernment should budget adequate funds for compensation for the land. Inprojects with credit components the modalities of granting subloans and thecriteria for selecting sub-borrowers should be clearly defined after discussionwith the concerned agencies. Before the Project began, it should be have beendetermined that the intended sub-borrowers would be able to meet all thecriteria including providing collateral.

1/ The entire collections of hatcheries from sales of fry were required tobe deposited with the Government. No part of these collections could beretained for operating expenses. Separate allocations for operatingexpenses were received from the Government on monthly basis aftercumbersome and time consuming procedures.

13

41. The viral pathogen monodon baculov.irus (MBV) disease of Penaeusmonodon (giant tiger shrimp) has been widespread all over in Indonesia,particularly on intensive shrimp culture farms, and is currently damagingaquaculture investments in the country. Under the Fisheries Industries CreditProject (Loan No. 742-INO), as much as 30 per cent of the shrimp farms have beeninfected by the MBV disease. In the infected ponds, the shrimps infected byMBV become sluggish, reduce feed intake, develop red gill, and eventually die.In extreme cases MBV could lead to a total loss of the crops. The diseasearises from stress from poor water quality and overstocking 1 . Under theProject, farmers are practicing improved extensive or semi-intensive culture ontheir farms. Although the yield is as low as one mt per ha a year, fortunatelythe disease has not occurred on the Project farms. Sometimes the hightechnology from the developed countries used in projects is inappropriate fordeveloping countries. Therefore, a careful investigation of the technologyavailable in developing countries should be conducted beforehand to finalappropriate improved technology like that used in the Project.

III. CONCLUSIONS AND RECOMMENDATIONS

A. Conclusions

42. The PCR Mission considers that the Project was successful with anoverall Project FIRR of 13 per cent and an EIRR of 17 per cent, despite thedecrease in the FIRR and EIRR of the hatcheries. Over 10,000 fish/shrimpfarmers in the Project area operating about 22,400 ha of tanibaks benefited fromthe improved 330 km of canals. These farmers have introduced improved pondmanagement techniques such as semi-intensive shrimp culture, and raised theiroverall technical knowledge. By increasing the productivity of tambaks, theProject has helped to maximize the benefits derived from Indonesia's extensivebrackishwater areas and to optimize resource utilization. Furthermore, over7,000 nit of tiger shrimp valued at $30 million per annum are being exportedunder the Project.

43. While the benefits from the Project shrimp hatcheries are far belowthe Appraisal estimates, the hatcheries have encouraged similar undertakings inthe private sector and have helped DGF ease fishing pressure on the supply ofwild shrimp fry. The Project also has had a significant institution building

j/ Crustacean baculoviruses are rod-shaped, enveloped, DNA virusesapproximately 70 nm by 300 nm in size. Monodon baculovirus (MBV) isinfectious to a wide range of penaeid species cultured in Asia. The knownMBV infects the cells of endodermal origin, the epithelium of thehapatopancreas and the anterior mid-gut. MBV has been implicated as acause of major losses of post larvae, juvenile and adult cultured shrimp.Environmental, nutritional and other stresses have been implicated asimportant causes of MBV disease and under extensive or semi-intensiveculture conditions MBV is apparently of little consequence.

2/ Project Completion Report on Fisheries Industries Credit Project (Loan No.742-INO) published on 5 August 1991.

14

effect by providing training and overseas fellowships for DGF staff, bystrengthening the Project implementation capacity of DGF, and by improving thequality of extension services.

44. Although the credit component (Part B) was cancelled, the tambakfarmers in the Project area were not seriously affected because they have directaccess to credit provided by BRI's various smallholder agriculture creditschemes, Bank Pengembangan Daerah and traders/cold storage operators.

B. Recommendations

1. Hatchery Operations

45. The five hatcheries constructed under the Project increased shrimpfry production by 300 million per annum (60 million fry per hatchery). All thehatcheries are currently relying on wild caught broodstock, which is nowbecoming difficult to obtain. For sustainable production systems, thehatcheries should reduce their dependence on wild caught broodstock and try todevelop a technology for rearing broodstock in ponds in the future.

46. Shrimp fry disease was another problem that caused major losses inthe Project hatcheries. Protozoa (Zoothanznium and Epistylis), bacteria(Aeromonas sp., Pseudomonas sp., Vibrio and Leucothryx) and fungus (Lagenidium)are the most common pathogens causing shrimp fry mortalities. Diseases shouldbe prevented by limiting stress and avoiding infection from biotic agents bysuch measures as water and feed quality improvement, sanitation and appropriatemaintenance and management that reduce the problems associated with shrimp frydisease and is considered a better method than chemical treatment to controloutbreaks.

2. DGEjGovernment

47. As for the joint operation of the Project hatcheries, thearrangements appear to be more profitable for private companies because theoperating costs do not include depreciation and interest on investment. Torecover the interest and investment costs, DGF should sell the hatcheries tothe private companies who are only operating the grow-out ponds at the Projecthatchery Sites. The sale would enable the private companies to reduce theiroperating cost for purchasing shrimp fry which could be stocked into their grow-out ponds and earn more profit through the systematic operation of the hatcheryand grow-out ponds.

48. The Government should allocate sufficient funds to assist them withthe operations and maintenance (O&M) of the canals improved under the Projectbecause of the funding constraints of the concerned provincial governments.

49. The Government should consider expediting the ownership titles forthe tambaks because the Project has stimulated development in the Project area.The Government should also seek ways by which small-scale tainbak farmers canhave greater access to credit.

15

50. Although the Project rehabilitated some of the canals serving shrimppanels in Indonesia a study carried out in 1990, financed by a loan from theWorld Bank (IBRD Loan No. 2773-IND), identified an additional 60,000 ha of pondsrequiring improvement in Java, Aceh, North Sumatra, South Sulawesi and SouthEast Sulawesi. The Government should seek external assistance to rehabilitatethe 1,200 km of canals serving the ponds.

3. Bank

51. Shrimp health management in Indonesia is lagging behind shrimpculture development, thus there is an urgent need to upgrade managementcapabilities to solve a national fish health problem. The viral pathogenmonodon bactzlovirus (MBV) and vibriosis infection are widespread in the countryand the shrimp industries, both hatcheries and grow-out ponds, are beingthreatened by disease problems and environmental deterioration. At present,fortunately such disease is limited to the Project hatcheries, but may spreadto project farms, if prevention measures are not taken soon enough. Because ofthe significant present threat of these diseases to shrimp production inIndonesia, the Bank should consider helpIng DGF/Government strengthen theirnational shrimp health management capabilities by providing advisory technicalassistance.

52. One of the most successful components of the Project is canalrehabilitation. Because of the lack of water through the primary and secondarycanals, most of the existing tambak farmers were unable to work their pondsthroughout the year. Consequently, production (300-400 kg per ha a year) wasgenerally far below the countrys standard (700-1,000 kg per ha a year).Therefore, the Government accorded high priority to maximum utilization of thetambak areas to increase production of small and poor fishermen. The Governmentneeds external assistance to formulate a project for rehabilitation of about1,200 km of canals servicing 60000 ha of tambaks utilizing the experiencegained in carrying out the improvements in the canals under the Project. TheBank should consider helping DGF/Governnient by providing project preparatorytechnical assistance and financing the rehabilitation of these canals.

16

LIST OF APPENDIXES

App end ix

Page

No. No.

1 Comparison of Proposed Scope and Actual

17Achievement at PCR

2 Canal Rehabilitation

18

3 Economic and Financial Analysis

19

4 Shrimp Fry Production In Five Project Hatcheries

29

5 Project Cost

30

6 Project Implementation Schedule

33

7 Compliance with Loan Covenants

35

8 Loan Disbursement

39

9 Reallocation of the Bank Loan

40

cancelledcancelledcancelledcancelled

cancelledcancelled

17 ppndixl

COMPARISON OF PROPOSED SCOPE AND ACTUAL ACHIEVEMENT AT PCR

ActualAchievement

Appraisal at PCRUnit (10 Mav'83 a! INov'9fl

Part A:

1. Canal Rehabilitation

(a) West Java km b/ 93 Cl(b) Central Java km b/ 142(c) East Java km b/ 95

Total km 280 380

2. Hatcheries

(a) East Java nos. 2 2(b) West Java nos. 1 1(c) South Sulawesi nos. 1 1(d) Aceh nos. 1 1

Total nos. 5 5

3. Extension Services d/

(a) Extension Workera (PPLs and ETa) floe. 200 100(b} Extension Subject-matter

Specialist (PPSs and ST5) nos. 20 10Total 220 110

4. Training, Fellowships and Project management

(a) Fellowships AbroadSenior Brackishwater Aquaculturist (1) e/ man-months 12 12Senior Civil Engineer (1) man-months 12 12Hatchery Managers and Technicians (25) man-months 150 150Total (27) man-months 174 174

(b) Local TrainingPPSs (10) man-months 60 30PPLs (100) men-months 400 200Senior Technicians (10) man-months 60 30Engineering Technicians (100) man-months 400 200Hatchery Technicians (30) man-months 180 180 (ITotal (250) man-months 1100 640

5. Consulting Services g/

(a) Resident PersonnelBrackishwater Aquaculturist man-months 54 55.00Pond Engineer man-months 36 92.43Hydrological Engineering man-months 24 39.00Training/Extension man-months 24 19.57Senior Hatchery Manager man-months 48 60.00Senior Hatchery Biologist man-months 36 36.00Hatchery Design Engineering man-months 18 44.60

(b) Senior Management, problem-solving man-months 30 h/ 20.43Total man-months 270 367.03

6. PBME sets 1 1

PartB: V

1. On-Farm Development (Credit)

(a) West Java ha 1,500 cancelled(b) Central Java ha 6,500 cancelled(c) East Java ha 3800 cancelled

Total ha 11,800 cancelled

2. Pumping Scheme (Credit)

{a) Central Java ha 2000 cancelled(b) Portable pumps (5.5 hp, diesel) Nos. 335 cancelled

aJ Date of Loan Effectivenessbl Province-wise break down of canals to be rehabilitated was not given In the Appraisal.ci in March 1990, Project was modIfied to include additional canal rehabIlItation of 50 km In West Java.di Training of this extensIon staff is enumerated under 4 ).e/ Number of persons Is given In parenthesies.

36 hatchery technicians were trained for five man-months each.g/ Four modifications were made in the period of consulting services.h/ As per consultancy contract.'I On 31 March 1989, all components of Part B wore cancelled.

(Reference in text: page 2, para. 6; page 6, para. 19)

Achievementaa Percentage

AppraisalEstimates

117. 9%

100.0%100.0%100.0%100.0%100.0%

50.0%

50.0%50.0%

100.0%100.0%100.0%1000%

50.0%50.0%50.0%50.0%

100.0%58.2%

101.9%256.8%162.5%

8 1.5%125.0%100.0%247.8%

68.1%135.9%

100.0%

cIQCD

'1

I-

CD

CD.I-,.

N)

CD1hCD

IICD

CD

I-J

CANAL REHABIUTA11ON

Annual Production No. oftatedBenefltted No. ol _____________ Before Project ______________________________ With Project ______________ Sampling

Location Canal Area Beneficiaries Shrimp MiIkflsh Total Shrimp __1iIkfish _____Total Farmers___________________ (km) (ha) ___________ (kq/Ii) (rrit/yr) fkg/ha) (mtlyr) (kg/ha) (mtlyr) (kqJli) Jmt/yr) (kg/ha) (mt/yr) (kg/ba) _JVyr) ________

A. East Java

1. Gresik 60.040 6,730 2,639 68 458 353 2,376 421 2,833 122 821 257 1,730 379 2,551 402. Sidoarjo 16.540 1,870 733 89 166 569 1,064 658 1,230 685 1,281 636 1,189 1,321 2,470 403. Pasuruari 18.530 680 267 89 61 569 387 658 447 685 466 636 432 1,321 898 40

Sub-total 95.110 9,280 3,639 685 3,827 4,511 2,568 3,351 5,919 120Average 74 412 486 277 361 638

B. Central Java

1.Pati 62.050 2.846 1,897 474 1,349 74 211 548 1,560 567 1,614 472 1,343 1,039 2,957 162. Brebes 32.350 2,451 1,634 172 422 785 1924 957 2,346 1392 3,412 550 1,348 1,942 4,760 213.Pemalang 39.350 1,226 817 0 0 1,648 2,020 1,648 2,020 3,414 4,186 1,717 2105 5,131 6,291 144.Kendal 8.160 204 136 89 18 569 116 658 134 685 140 636 130 1,321 269 40

Sub-total 141.910 6,727 4,484 1,789 4,271 6,060 9,351 4,926 14,277 91Average 266 635 901 1,390 732 2,122

C. West Java

1.Cirebon 40.976 2,418 726 0 0 443 1,071 443 1,071 158 382 542 1,311 700 1693 42. lndramayu 41.565 2,375 713 0 0 443 1052 44-3 1,052 158 375 542 1,287 700 1,663 43. Subang 10.477 1,600 480 0 0 300 480 300 480 300 480 450 720 750 1200 2

Sub-total 93.018 6,393 1,919 0 2,603 2,603 1,237 3,318 4,555 10Average a 407 407 194 519 713

Total 330.038 22,400 10,042 2,473 10,701 13,174 13,156 11,595 24,751 221Average 110 478 588 587 518 1,105

Source: PMO, PBME (Pages 157 and 159) end Consultants Final Report, vol III (Pages 255-257)

:'

19

Appendix 3Page 1

ECONOMIC AND FINANCIAL ANALYSiS

Table 1: Income and pnditure of the Project HatcheriesFor the year 1 July 1990 to 30 June 1991

(Rp)

Central No.1 No.2 No.3 No.4 No.5Description Office Situbondo Barru Caringin Aceh Tuban Total

IncomeShrimp Fry Sales 0 331,232,394 835,891,066 290,726,045 418,891,990 638,946,039 2,515,687,534Discount 0 6,497,575 9,474,681 15,375,206 332,500 26,707,343 58,387,305Other Income 59,736 353,347 238,923 0 54,974 456,988 1,163,968

Total (A) 59,736 325,088,166 826,655.308 275,350,839 418,614,464 612,695,684 2,458,464,197

Operational ExpensesBroodstock 0 39,101,000 46,361,000 36,918,100 27,889,600 41,245,750 191,516,450Broodstock Feed 0 8,630,945 6,959,300 9,722,850 2,732,275 9,158,370 37,203,740Larvae and PL Feed 0 8,047,475 23,313,550 10,239,700 19,173,525 26,328,875 87,103,125Medicine 0 12,466,910 16,934,300 5,350,000 6,110900 12,281,345 53,143,455Chemical and Fertilizer 0 3,039,045 10,941,810 241,000 1,045,900 2,814,425 18,082,180Harvesting Supplies 0 13,109,925 11,336,850 26,374,000 2,164,800 14,917,470 67,903,045Sales Expenses 7,183600 4,525,805 1,175,700 ,880,450 17,614,980 5,062,500 37,443,035Repair and Maintenance 7,118,181 9,786,798 17,353,455 9,135,150 8.642,973 16,225,800 68,262,357Electrical 0 31,875,856 36,897525 28048,800 23,266,650 30,200,100 150,288,931Extension 70,176,711 3,070,125 7,229,790 5,636,325 6,174,650 10,710,180 102,997,781Manpower 96,019,120 103,559,320 126,261,895 107,239,620 95,963,025 104,247,352 633.290,332Administration 20,818,925 5,130,095 6,106,123 7,324,183 6,507,380 6,168,219 52,056,925Other Expenses 98,045525 229,526 20,811,835 131,000 31,453,246 270,250 150,941,382Additional Supplies a! 165,000 61,972,315 118,212,505 105,262,732 99,497,116 82,798,623 467,908,291

Total (B) 299,527,062 304,545,140 449,697,638 353,503,910 348,237,020 362,430,259 2,118,141,029

Net Profit (A-B) (299,467,326) 20,543,026 376,757,670 (78,153,071) 70,377,444 250,265,425 340,323,168

Source: P.T. Sarana Boga Agung (joint operation company with Directorate General of Fisheries)

a! Breaidown of inthvidual items of expenditure not available

(Reference in text: page 4, para. 13; page 5, para. 15; page 10 para 34;and page 11, para. 35)

23610.43

24571

2458

192124

71683868

150103633

52619

2,118

340

25011.00

27501

2751

20013075704070

160105640

55630

2,175

576

Appendix 320

Page 2

Table 2: Income and Expenditure of the Project HatcheriesActual 1990-91 and Projected until 2004-05

(Rp million)

Description 1990-91 1991-92

A. INCOMEShrimp Fry Production (million nos.)Unit Price per Fry

Sales ProceedsOtherIncome ______ ______

Total Income

B. OPERATIONAL EXPENSESBroodstockFeedPesticides, Chemicals and FertilizersHarvesting SuppliesSales ExpensesRepairs and MaintenanceElectrical ExpensesExtensionManpowerAdministrationOtherExpenses _______ _______

Total Expenditure ______ ______

C. CASH FLOW

1992-93to 2004-05

30011.00

3300

3301

240155

90855085

19012565060

760

811

Source: P.T. Sarana Boga Agung joint operation company with Directorate General of Fisheries)

21 Appendix 3

Page 3

Table 3: Financial and Economic AnalysisComparative Technical Data for Hatcheries

At Appraisal a' At Project Completion

A. LARVICULTURESize of larval rearing tanks 15,000 liters a' 10,000 litersStocking rate 50 naupli/liter 100 naupli/lilerSurvival rate, hauplius to PL 3/4 33 per cent b/ 60 per centProduction/lank/cycle 247,500 PL1 5 600,000 PL3/4Number of days/cycle 30 12Number of rearing cycles/tank/year 11 8Production/tank/year 2720,000 PL15 4,800,000 PL3/4Number of tanks/hatchery 15 16Production/hatchery/year 40,800,000 PL15 76,800,000 PL3/4

B. POSTLARVICULTURESize of postlarval rearing tanks 20,000 liters c/Stocking rate 24 PL3/4/liter d/Survival rate, PL3/4 to PL1 5 80 per centProduction/tank/cycle 384,000 PL1 5Number of days/cycle 12Number of rearing cycles/tank/year 8Production/tank/year 3,072,000 PL1 5Number of postlarval rearing tanks/hatcher 20 c/Production/hatchery/year 61,440,000 PL1 5

& The appraisal did not envisage separate tanks for larviculture and postlarvicuttwe.bl The survival rate at appraisal is for nauplius to PL15.cl For hatcheries at Situbondo and Barru, 10 postlaMculture tanks of 40000 liters each have been constructed.d/ Actually, up to 50 PL3/4 per liter can be stocked. A lower stocking rate has been taken in order to match the

capacity of laMculture tanks with that of postlarvicutture tanks. Apparently, the capacity of postlaMculture tanks is muchmore than what is justified by the capacity of laMculture tanks.

22

Appendix 3Page 4

Financial and Economic EvaluationSelling Prices of Shrimp Postlarvae

1. There are wide variations in prices of shrimp postlarvae.Different prices prevail in different provinces. Prices also fluctuatewidely over time:

Table 4: Average Selling Price(Rp)

Hatchery

1. Situbondo, East Java2. arru, South Sulawesi3. Caringin, West Java /4. Laninga, Aceh b/5. Tuban, East Java /

Weighted Average

1987-88 1988-89

21.79 15.44

27.30 25.11na nana nana na

23.25 20.09

1989-90 1990-91

10.00 850

17.02 12.46

13.50 9.89

22.00 11.66

13.00 9.08

15.38 10.43

na: Not available._a/ Caringin hatchery commenced operations in May 1989./ Hatcheries at Lamnga, Aceh and Tuban, East Java commenced operations in

October 1989.

2. In the Project Completion Report of Fisheries Industries CreditProject (Loan No. 742-INO), the unit selling price of shrimp postlarvaeduring 1989 was Rp 10.

3. In the final PBME report on the Project published in March 1990,the average unit price of shrimp postlarvae (PL19 or PL2O) was Rp 9.98.

4. During 1991, unit selling price of shrimp postlarvae of Tubanhatchery visited by the PCR Mission, fluctuated between Rp 7 in February 1991to Rp 15 in October 1991.

Table 5: Financial and Economic EvaluationSales of Shnmp Postlarvae by Hatcheries before 1990-91

Situbondo Bartu Caiingin Larrtnga Tuban TotalYear Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value

_____________ '000 9p_million '000 Rp million '000 Rp million '000 Rp million '000 p million '000 Rp million

1987 - 88 36,353 770 11,962 330 nil nil nil nil nil nil 47,315 1,100

1988 - 89 12,768 197 11,819 297 nil nil nil nil nil nil 24,587 494

1989 - 90 8,500 a' 85 a' 39,000 a! 664 a! 12,000 b/ 162 b/ 1,000 Cl 22 1,000 c/ 13 61,500 946

56,621 1,052 62,781 1,291 12,000 162 1,000 22 1000 13 133,402 2,540

Source: Consultants Final Report. Volume I. I'.)L)

aJ Estimated, since actuals were available for April to August 1989 only.b/ Estimated, since actuals were available for May to September 1989 only.Cl Trial operations only.

(D

LriI-..

24 Appendix 3Page 6

Table 6: Average Farmate Prices of Tiger Shrimt(30 pcs/kg)

Jakarta Area, 1987 to 1991

Year

Month

Rp/kg

1987

1988

1989

1990

1991

JanuaryMarchJuneSeptemberDecember

MarchJuneSeptemberDecember

MarchJuneSeptemberDecember

MarchJuneSeptemberDecember

March

13,62513, 62513, 35013, 85015, 300

15,05014, 67515,10015,375

13,57511,67510,2259 , 150

8,15011,45012 ,70013 ,500

13,100

Source: Project Completion Report on Fisheries Industries CreditProject (Indonesia) (Loan No. 742-INO).

25 Appendix 3Page 7

Table 7: Financial and Economic AnalysisComparison of Income and Expenditure of

Polyculture Tambak of 1 ha With and Without Prolect

Increment(Rp million)

6.97SALES (Rp million)Shrimp Quantity (kg)

Price (Rp)Amount (Ap)

Milkfish Quantity (kg)Price (Rp)Amount (Rp)

With Project

8.10700

11,0007,700,000

1752300

402,500

Without Project

1.1330

11,000330,000

3502,300

805,000

7.31

0.88

0.42

0.03

0.07

0.14

0.89

0.07

0.61

0.03

0.96

0.05

1.38

0.19

1.81

0.19

0.34

0.11

0.83

0.07

0.79

0.25

OPERATING EXPENSES (Rp million)Shrimp postlarvaeMilkfish fry

Fertilizer

Lime

Pesticide

Feed

Labor

Fuel for pumps

Repairs and maintenance

CASH FLOW

Hectares Benifitted

TOTAL BENEFIT (Rp million)

6.43

0.54

22,400

12,096

26

Appendix 3Page 8

Table 8: Financial and Economic Analysis - Hatcheries(Rp million)

__________ Financial __________ _________ Economic _________Year Investment Operating Net Cash Investment Operating Net Cash

__________ Benefit a! Cost Cost a' Flow Benefit Cost Cost Flow

1985 - 86 0 1,288 0 (1,288) 0 1,288 0 (1,288)1986 - 87 0 1,763 0 (1,763) 0 1,681 0 (1,681)1987 - 88 1,100 1,742 990 (1632) 1,100 1,655 941 (1,496)1988 - 89 494 2,796 626 (2,928) 494 2,656 595 (2,757)1989 - 90 946 2,071 898 (2,023) 946 1,967 853 (1,874)1990 - 91 2458 - 2,118 340 2,458 - 2,012 4461991 - 92 2,751 - 2,175 576 2,751 - 2,066 6851992 - 93 3,301 - 2,490 811 3,301 - 2366 9351993 - 94 3,301 - 2,490 811 3,301 - 2,366 9351994 - 95 3,301 2,062 b/ 2,490 (1,251) 3,301 1,959 2,366 (1,024)1995 - 96 3,301 - 2,490 811 3,301 - 2,366 9351996 - 97 3,301 - 2,490 811 3,301 - 2,366 9351997 - 98 3,301 - 2,490 811 3,301 - 2,366 9351998 - 99 3,301 - 2,490 811 3,301 - 2366 9351999 -2000 3,301 2,062 b/ 2,490 (1,251) 3,301 1,959 2,366 (1,024)2000 - 01 3,301 - 2,490 811 3,301 - 2,366 9352001 - 02 3,301 - 2490 811 3,301 - 2,366 9352002 - 03 3,301 - 2,490 811 3,301 - 2,366 9352003 - 04 3,301 - 2,490 811 3,301 - 2,366 9352004 - 05 3,301 (1,411)c/ 2,490 2,222 3,301 (1,411) 2,366 2,346

____________ FIRR = _per cent EIRR = 2 per cent

a/ See Table 2 of this Appendrx for linancial benefits and operating expenses.

b/ 25 per cent of investment costs excluding cost of land, to cover replacements.c/ Reflects the value of land excluding appreciation.

27

Appendix 3Page 9

Table 9: Financial and Economic Aaysis - Canal Rehabilitation a/(Rp million)

_______ FIRR _______ ______ EIRR ______Year Investment Operating Net Cash Investment Operating Net Cash

____________ Benefit Cost b/ Cost Flow Benefit Cost Cost Flow

1985 - 86 0 376 0 (376) 0 364 0 (364)

1986 - 87 0 1,105 0 (1,105) 0 1,050 0 (1,050)

1987 - 88 0 12,900 0 (12,900) 0 12,255 0 (12,255)

1988 - 89 39,032 17,069 36,008 (14,045) 23,419 16,216 34,208 (27,005)

1989 - 90 93,677 15,455 86,419 (8,197) 84,309 14,682 82,098 (12,471)

1990 - 91 140,515 5,481 129,629 5,405 133,489 5,207 123,148 5,134

1991 - 92 156,128 2308 144,032 9,788 156,128 2,193 136,830 17,105

1992 - 93 156,128 1,005 144,032 11,091 156128 955 136,830 18,343

1993 - 94 156,128 1,005 144,032 11,091 156,128 955 136,830 18,343

1994 - 95 156,128 1,005 144,032 11,091 156,128 955 136,830 18,343

1995 - 96 156,128 5,023 144,032 7,073 156,128 4,772 136,830 14,526

1996 - 97 156,128 1,005 144,032 11,091 156,128 955 136,830 18,343

1997 - 98 156,128 1,005 144,032 11,091 156,128 955 136,830 18,343

1998 - 99 156,125 1,005 144,032 11,091 156,128 955 136,830 18,343

1999 -2000 156,128 1,005 144,032 11,091 156,128 955 136,830 18,343

2000 - 01 156,128 5,023 144,032 7,073 156,128 4,772 136,830 14,526

2001 - 02 156,128 1,005 144,032 11,091 156,128 955 136,830 18,343

2002 - 03 156,128 1,005 144,032 11,091 156,128 955 136,830 18,343

2003 - 04 156,128 1,005 144,032 11,091 156,128 955 136,830 18,343

2004 - 05 156,128 1,005 144,032 11,091 156,128 955 136,830 18,343

__________ FIRR 19 percent E1RR 22 percent

at See Table 7 of this Appendix for financial benefits end operating expenses of polyculture tambaks.b/ Investment costs also include cost of pumps and onfarm improvement. 5 per cent of the initial investment

costs of rehabilitation of canals has been included as the annuar maintenance costs for the years 1991-92 onwards,with the exception of years 1995-96 and 2000-01 when 25 per cent of the investment cost has been included tocover major repairs as well as maintenance.

28

Appendix 3Page 10

Table 10: Financial and Economic AnalysisOverall Proiect

(Rp million)

_________ Financial _________ ________ Economic 2/ ________Year Investment 1/ Operating Net Cash Investment Operating Net Cash

___________ Benefit Cost Cost Flow Benefit Cost Cost Flow

1983 - 84 0 101 0 (101) 0 96 0 (96)1984 - 85 0 2,154 0 (2,154) 0 2,046 0 (2,046)1985 86 0 3,406 0 (3,406) 0 3,307 0 (3,307)1986 - 87 0 4,942 0 (4,942) 0 4,701 0 (4,701)1987 - 88 1,100 15,664 990 (15,554) 1,100 14,881 941 (14,722)1988 - 89 39,526 21,251 36,634 (18,359) 23913 20,189 34,803 (31,079)1989 - 90 94,623 18,272 87,317 (10,966) 85.255 17,358 82,951 (15,054)1990 - 91 142,973 5,895 131,747 5,331 135,947 5,600 125,160 5,1871991 - 92 158,879 2,331 146,207 10,341 158,879 2,215 138,896 17,7681992 - 93 159,429 1,005 146,522 11,902 159,429 955 139,196 19,2781993 - 94 159,429 1,005 146,522 11,902 159,429 955 139,196 19,2781994 - 95 159429 1,830 146,522 9,840 159,429 1,739 139,196 18,4941995 - 96 159,429 5,023 146.522 7,884 159,429 4,772 139,196 15,4611996 - 97 159,429 1,005 146,522 11,902 159,429 955 139,196 19,2781997 - 98 159,429 1,005 146,522 11,902 159,429 955 139,196 19,2781998 - 99 159,429 1,005 146,522 11,902 159,429 955 139,196 19,2781999 -2000 159,429 1,830 146,522 9,840 159,429 1,739 139,196 18,4942000 - 01 159,429 5,023 146,522 7884 159,429 4,772 139,196 15,4612001 - 02 159,429 1,005 146,522 11,902 159,429 955 139,196 19,2782002 03 159,429 1,005 146,522 11,902 159429 955 139,196 19,2782003 - 04 159,429 1,005 146,522 11,902 159,429 955 139,196 19,2782004 - 05 159,429 (1,893) 146,522 13,313 159,429 (1,728) 139,196 21 .961

___________ FIRR = 13 per cent EIRR 17 per cent

1/ In the overall Project cash flow, a cones of unknown investment costs are included. Those costs are as follows:

Financial Economic1983/84 101 961984 / 85 2154 20461985 / 86 1742 16551986/87 2074 19701987 / 88 1022 9711988 /89 1386 13171989 / 90 746 7091990/91 414 3931991 /92 23 22

Standard conversion factor of 095 is applied to the financial costs.

29Appendix 4

SHIIMP FRY PRODUCTION W'l FIVE PROJECT HATCHEIIES(From June 1990 10 June 1991)

No. of No. of SurvivalProduction Broodetock No. of No. of PL rate Production

Hatchery cyclee Hate Female Nauplii PL 3-4 Produced (%) Period - -

1 52 61 23550000 13,611,400 9,954.223 42.27% 17 May -15 June 19902 158 124 46,950,000 43,444,430 95,500 0.20% 3 June - Ii July 1990

No.1 3 122 154 36,610,000 8,432,500 4,097,112 11.19% 3 Aug. - 4 Oct. 1990Situbondo, 4 153 157 54,330,000 24,565,000 5,590,981 10.29% 2 Oct.-20 Dec. 1990EastJava 5 66 66 42,300,000 23,075000 10,273,482 24.29% l7Jari. - 10 Mar. 1991

6 77 109 31,400000 10,725,000 5,576,676 17.76% '19 Feb. - 24 Apr. 19917 86 155 82,300,000 J9 2,604,564 3.16% 3 Apr. - 8 June 1991

Subtotal 7 714 848 317,440000 138,513,330 36,192,538 12.03% _______ ______1 130 122 - 44,938,000 28,350,000 6,341,268 14.11% 25 May -29 July 19902 81 80 39,920,000 15,417000 5,174,962 12.96% 25 June - 15 Aug. 19903 93 114 40,640,800 23,950,000 11468,090 28.22% 24 Aug. - 11 Oct. 1990

No.2 4 66 59 32,611,400 14,800,000 7,680,780 23.55% 7 Sep. -25 Oct. 1990

Barru, 5 162 169 63,100,000 30,925,000 16,187,831 25.65% 21 Oct. - 16 Dec. 1990South Sulaweai 6 105 95 52,900,000 28,550,000 7,179,728 13.57% 1 Jan. - 17 Feb. 1991

7 50 68 46,900,000 17,400,000 2,929,370 6.25% 17 Jan. - 12 Mar. 19918 88 209 54,500,000 22,5O0.0 9,339,551 17.14% 18 Apr. 31 May 1991

Subtotal 8 775 916 375,510,200 181,892,000 66,301580 17.66%1 107 '136 48,800,000 13,280,000 4,735,647 9.70% 30 May -11 July 19902 91 134 39,750,000 1,850,000 0 0.00% 22July- 4Aug. 1990

No. 3 3 118 111 44,290,000 15,990,000 1,473,440 3.33% 4 Aug. . 25 Sep. 1990Caringin, 4 62 160 33,338,000 15,640,000 7,350,611 22.05% 11 Oct.-10 Dec. 1990

West Java 5 84 120 57,460,000 32,350,000 9,629,084 16.76% 17 Dec. -30 Jan. 19916 122 145 62,200,000 8,550,000 3,400,240 5.47% 19 Feb. - 14 Apr. 19917 94 166 45,921,000 6,200,000 1,257,540 2.74% 24 Apr.-17 June 1991

Subtotal 7 698 972 331 759,000 93,860,000 27,846,562 8.39% _____ ______1 54 123 61,900,000 15530,000 12,565,465 20.30% 25 June - 10 Sep. 19902 74 135 65,000,000 20,550,000 10,069274 15.52% 23 Aug. - 28 Oct. 1990

No.4 3 46 114 58,150,000 15,460,000 7,105,600 12.22% 17 Ccl. -24 Dec. 19904 80 170 71,265,000 16,110,000 1,677,500 2.35% 17 Jan.-30 Mar.1991

D. I. Aceh 5 56 78 34,000,000 1,800,000 274,875 0.81% 19 Mar. - 22 Apr. 19916 49 74 34,500,000 00 4i85PO 12.14% 13 May - 30 Juno 1991

Subtotal 6 359 694 324,815,000 76,850,000 35,902,214 11.05% _____1 113 128 49,729,000 '13,320,000 7,132,300 14.34% 4 June - 8 Aug. 19902 70 94 24,928,000 4,316,000 1,624,700 6.52% l2JuL- 9 Sep. 19903 104 lii 55,283,000 19,109.100 6,653,029 12.03% 3 Sep. -24 Oct. 1990

No. 5 4 155 166 23,530,000 13,866,000 7,307,145 31 .05% 1 Oct. - 12 Dec. 1990

Tuban, 5 83 137 43,187,000 29,660,000 10,769,842 24.94% 2 Jan. -25 Feb. 1991East Java 6 117 164 19,949,000 15,346,000 13,104,992 65.69% 5 Mar. - 5 May 1991

7 26 66 21,364,000 14,525,000 9,875,700 46.23% 1 May - 6 June 19918 86 155 82,300,000 21,936,000 10,974,176 13.33% 15 May -30 June 1991

Subtotal 8 754 1,021 320,270,000 132,078,100 67,441,884 21.06% ______

Total 36 3,300 4,451 1,669,794,200 623,193,430 235,684,778 _________ 17 May 1990 -30 June1991

Average Annual

Production! 7.2 660 890 333,958,840 124,638,686 47,136,956 14.11%Hatchery

Appraisal Target

Production! 40,000,000Hatchery__________ ______ _____________ ____________ __________ __________ ________________________

Source: DGF/Pt. Sarana Adya Boga Agung (30 September, 1991)

(Reference in text page 5, para. 15)

30

Appendix 5Page 1

Table 1: ProeCo($'000)

______ Appraisal ______ _________ Actual_______ _________FX ______IC FX LC

___________________________ ADB ADB GOl Total ADB ADB GO Total

A. PartA

1.Canal Rehabilitation 5,973 2,531 2,101 10,605 6,008 3,905 1,633 11,546(a) Earthworks 4,045 1,780 1,342 7167 5020 3,352 1,304 9,676b) Concrete Control Structure 1,870 423 270 2,563 289 214 81 584c) Engineerin9 58 329 191 578 699 339 166 1.204d) Land Aqulsition 0 0 297 297 0 0 82 82

2. Hatcheries 1.789 0 2,486 4,275 3,598 1,245 1,984 6,827a) Land Aquisition 0 0 173 173 0 0 811 811b) Buildings 530 0 794 1324 592 480 313 1385

(c) Tanks 342 0 228 570 316 210 187 713(d) Electrical 160 0 41 201 116 33 55 204(e) Pumps 85 0 21 106 0 10 15 251) Water Supply 54 0 54 108 38 17 28 83g) Air and Water Distribution 80 0 20 100 137 85 85 307h) Water Filtration 3 0 2 5 0 0 0 0I) Site Preparation 8 0 8 16 57 25 41 123(j) Broodstock Ponds 90 0 90 180 116 50 82 248(k) Hatchery Equipment 297 0 53 350 1,467 11 17 1,495I) Furnishings 40 0 120 160 43 3 6 52m) Boats (Sm, 1/hatchery) 4 0 21 25 0 0 0 0n) Tools 9 0 9 18 0 0 0 0

(o) Trucks, (3/4 nit, 2/hatchery) 0 0 70 70 0 0 0 0(p) Engineering 32 0 290 322 0 40 66 106(q) Operating Expenses 55 0 492 547 716 281 278 1,275

3. Extension Services 306 0 1,633 1,939 304 0 88 392(a) Personnel 0 0 1,013 1,013 0 0 86 86(b) Equipment 306 0 620 926 304 0 2 306

4. Training. Fellowships and 450 0 960 1410 441 74 1,088 1,603Project Management(a) Fellowships Abroad 366 0 0 366 397 0 0 397(b) Local Training 0 0 95 95 0 0 126 126(c) Training Materials 18 0 2 20 0 0 106 106(d) Project Management Office 66 0 863 929 44 74 856 974

- Personnel 0 0 320 320 0 72 65 137-Office space 56 0 70 126 0 0 29 29- Office supplies 0 0 27 27 44 0 54 98- Communications 0 0 18 18 0 0 51 51- Local Travel 0 0 29 29 0 0 233 233-JeepTypeVehicles(4) 0 0 138 138 0 0 37 37- Provincial PMOs 0 0 261 261 0 2 387 389- Visits to ADS 10 0 0 10 0 0 0 0

5. Consulting Services 2,970 0 908 3,878 2,254 233 1,027 3,514

6.PBME 0 0 100 100 0 0 43 43

Base Cost (Part A) 11,488 2,531 8,188 22,207 12,605 5,457 5,863 23,925Physical contingency 1,723 380 1,228 3,331 0 0 0 0Price contingency 3,466 1,089 4,449 9,004 0 0 0 0

Subtotal (A) 16,677 4,000 13,865 34,542 12,605 5,457 5,863 23,925

B. PartB

1 On-Farm Development 1,594 0 6,913 8,507 0 0 0 0(a) Eartliworlcs 927 0 4,369 5,296 0 0 0 0(b) Gates 425 0 636 1061 0 0 0 0(c) Screens 60 0 6 66 0 0 0 0d) Land Titles 0 0 46 46 0 0 0 0e) Working Capital 182 0 1,856 2,038 0 0 0 0

2. Pumping Scheme 0 0 856 856 0 0 0 0

Base cost (Part B) 1,594 0 7,769 9,363 0 0 0 0Physical contingency 239 0 1,165 1,404 0 0 0 0Price contingency 490 0 4,201 4,691 0 0 0 0

Subtotal (B) 2,323 0 13,135 a! 15,458 0 0 0 0

C. Total Cost (A+B) 19,000 4,000 27,000 50,000 12,605 5,457 5,863 23,925

' U ' "-' P I VtIVUIY LU LI PIIlWIUU Uy Dr -li dl IU iL SUUUUFIOF5

(see Appendix 13 of the Appraisal).(Reference in text: page 7, para. 24 )

Table 2: ACTUAL PROJECT COST - YEAR WISE BREAKDOWN

_______ 1983 3984 1985 3986 1937Foreign Foreign Foreign Foreign Foreign

CATEGORY Exchange Local Cuy €xchangeI Local Curr.ney Exchange Local Currency jExchange Local Currency Exchange Local Currency__________________________________________ (ADS) (ADS) (DGF) ADB} (ADS) (DGF) (ADS) ADB) (039 (ADS) (ADS) (DGF) (ADS) (ADS) {DGF)

Of A Civil Works - Canal Rehabilitation - - 152.057 34o 32.4 - 5I1,5 '.iot018 Clvii Works - Hatcheries - - e7o. 3,3.an - s5 21e, - 5.535

02 Consulting Service. - - iI30s - 435.*7 31305 - 2e1.SI5 - 5O5i 350.550 - 55.5!!

03 Equipment, Mtei.ls, Facilities sI - - - - a.105i - *su 35. - l2.Qfl 15M - 11.510

04 Training and Fellowahip & PMO 50.135 - 73.444 135.550 i53j53 35.54O 51.15505A Local Exp. for Canal Rehabilitation Works - - - - - - - .sso - -058 Local Exp. Local Training - - - - -05C Local Exp. Consulting Services - - - - - -OSD Local Exp. - Civil Worki- Canal

Rehabilitation (LCFOP) - - - - - - - - - -05E Local Exp. - Civil Works - Hatcheries (LCFOP) - - - - 'sjs. - - 357.24'05F Local Exp. Local Training )LCFOP) - - . - - - - -053 Local Exp. - Consulting Services (LCFOP) . . . - . . . 1.155 -

05H Local Exp. - V.hiclei (LCFOP) - -051 Local Exp. H.tchery Construction - - - - - - - - - - - - I—.08 Credit Facilitie, for On-F.rm 0ev. - - - - - - - - -07 Uriallocatid (Pans A and B) _______ _______ - - - - - - - - -

TOTAL 51.135 511,355 - 524 727551 - 1,1042 051.530 44.555 1.545,550 2l58 1.437,057 1553Sl

CUMULATIVE AMOUNT 5&i35 311305 - 504.355 L320.W - 717.VQ 2.W550 44.555 5.435,75! 4,715,054 l,5l2 5.521,111

CUMULATIVE PERCENTAGE - I S - 12 II - Ia 55 35 35 52

a/ Includ,s equipment for hatcheries, extension services end training.

(bID

Tabla 2: ACTUAL PROJECT COST - YEARW5E BREAKDOWNcuss)

CATEGORY

O1A CMI Wot.s - CCnaI Rahebilitadon01 B CMI Works. llstch.n.i02 ConauftingS.rvicss03 Equiprn.rrt, Materials, FclIiti.s ad

04 Training and Fellowahips & PMO05A Local Exp. br Canal Rahebilrtat*on WorIrs058 Local Exp. - Local Training05C Local Ep. - Consulting S.rvices05D Local Exp. - CMI Works' Canal

Rehabilitation (LCFOP)05E Local Exp. - Civil Works- 'Iatch.ri.a ILCFOP)057 Local Exp. - Local Training (LCFOP)050 Local Exp. - COnaulling Services (LCFOP)0511 Local Exp. VehioIøs LCFOP)051 Local Exp. Hatchery Constnjction06 Cradit •ciIlbies for On-Farm Day,07 Unallocated (Part, A and B)

TOTAL

CUMULATIVE AMOUNTCUMULATIVE PERCENTAGE

ad Includes equipment tom hatcheries, .,lenaionservice, and training.

_______ 1988 ________ 1989 _______ 1990 _______ 1991 _______ TOTAL

Foreign Foreign For.ign Foc.ign Foreign

Etchang. Local Currency Ertchange Local Cutr.ncy Exchange Local Currency Exch.nge Local Cufleiicy Exchange LocalCun.ncy

(ADS) (ADBJ (DGF) CADO) (4DB) J (DOF) (4DB) (4DB) (OGF) IADB) (ADO) (DGF) (ADS) (ADB) (DGF)

1.732,509 - 56.849 1,752,312 2,201 296,295 - 638,396 629,783 119285 6,008,429 - 1,633,000

197,970 . - 531,143 - 483,885 69,456 - 163,460 - - 1,311,809 - 1.984,000

385,023 - 51.780 257.003 - 24.997 7.938 - 50.686 - - 2.254.415 - 1,027,000

822,721 - 13,105 760,150 14.187 435,027 - 8,269 - . - 2.633.662 - 68,000- - 143,000 - - 88,000 - 170,504 - 13,255 397,106 - 1.131.000• 1,030,789 - - 1,324,831 - - 8-4,262 - - - - 3,355,857 -

- 31.428 - 28.954 - 366 - - . . 90,144 -

• 230.733 - - 10,023 - . - - - - . - 548,710573,309 - - - - • - - - - 813,306

- 73,751 - - - - - - - . - - - 73751 -- 118,322 - - 15,380 - . • • - - - - 142,894 -

• 22,066 • 382,050 - - 27,577 - • . - - 431,713

3,118,223 2.060,418 264,734 3,300,608 1,761,238 613250 808,716 112,207 1,231,317 629783 - 132,550 12,505,424 5,456.375 5,853.000

7,866,317 3,582,930 3,885,583 11,186,925 5.344.168 4,499,133 11975,841 5,456,375 5,730,450 12,505,424 5,456,375 5,863,000

621 66 66 891 981 77 95 100 98 100 lOOi 100

CECD

U-?

I ' I

PROJECT MPLEMENTATloN SCHEDULEPROJECTED AND ANNUAL

*1 CenceIled

Legend: Propoied Sch•duleActual

po

x

Loan Agreement, Complied.Article IV,Section 4.06 (a).

Article IV, PartSection 4.06 (b)

complied.

Article IV, PanSection 4.07 (b)

complied.

Article IV, Complied.Section 4.07 (c),

Item (1), Complied.Schedule 6

Appendix 7Page 1

COMPLIANCE WITH LOAN COVENANTS

Loan Covenant

Reference

Status ofCompliance/Remarks

The Borrower shall maintain or cause to be maintainedrecords and accounts adequate to identif' the goods andservices financed out of the proceeds of the Loan, todisclose the use thereof in the Project (including the costthereof) and to reflect in accordance with consistentlymaintained sound accounting practices, to the extentrelevant to the Project, the operations and financialcondition of the agencies of the Borrower responsible forcarrying out the Project and operation of the Projectfacilities.

The Borrower shall (i) maintain or cause to be maintainedseparate accounts for the Project; (ii) have such accountsand related financial statements audited annually, inaccordance with sound auditing principles, by auditorsacceptable to the Bank; (iii) furnish to the Bank, as soon asavailable but in any event not later than nine (9) monthsafter the end of each related fiscal year, certified copies ofsuch audited Imancial statements and the report of theauditors relating thereto, all in the English language.

The Borrower shall furnish or cause to be furnished to theBank quarterly reports on the carrying out of the Projectand on the operation and management of the Projectfacilities.

Promptly after completion of the Project, but in any eventnot later than six (6) months after the closing date forwithdrawals from the Loan Account or such later date asmay be agree for this purpose between the Borrower andthe Bank, the Borrower shall prepare and furnish to theBank a report, in such form and in such detail as the Bankshall reasonably request, on the execution and initialoperation of the Project, its cost and benefits derived and tobe derived from it, the performance by the Borrower of itsobligations under the Loan Agreement and theaccomplishment of the purposes of the Loan.

The Borrower shall establish in Jakarta a ProjectCoordinating Committee (PCC), consisting ofrepresentatives of BAPPENAS, Ministry of Finance, BankIndonesia, BR!, DGF, Directorate General of Agraria,Directorate General of Water Resources Development,Directorate General of Cooperatives, Project ManagementOffice, and each relevant Provincial Fisheries Service. ThePCC shall be chaired by the Director General of Fisheries.

(Reference in text: page 9, para 30)

Item 2(a), Schedule 6

Complied.

Item 3 (a), Schedule 6.

Item 4 (a), Schedule 6

Complied. FivePMO branchofficesestablished.

P a r t I ycomplied.

Item 4 (c), Schedule 6. P a r t I ycomplied.

Items 5,6 and 7, No longerSchedule 6

required.

Appendix 7Page 2

Reference

Status ofCompliance/Remarks

Loan Covenant

Implementation: DGF

DGF shall be responsible for executing Part A of theProject, and shall establish, within three (3) months of theeffective date of the Loan, a Project Management Office(PMO) in Jakarta. The PMO will be comprised of anadministrative fmancial section and a technical section, andwill be adequately provided with office accommodations andequipment, and suitably staffed with qualified technical andadministrative personnel on a full-time basis.

DGF will establish a PMO branch office in each provinceof the Project area. Each PMO branch office will beheaded by a full-time Deputy Director who shall reportdirectly to the Project Director.

At the district level, Project Implementation Units (PIU)will be set up. Each PIU shall consist of at least oneextension-services supervisor (Penyuluh Ferikanan Spesialis;hereafter PPS) and at least one senior technician shallsupervise a maximum of 10 extension-services workers(Penyuluh Perikanan Lapangan; hereinafter PPL) and 10engineering technicians respectively.

To facilitate improvement of extension services, a ProjectManagement Unit (PMU), consisting of one PPL and oneengineering technician, shall be formed to undertake field-level extension-services work. Each PMU, which willencompass about 300 ha of tambaks under the Project, shallbe responsible for assistance in (i) tambak development andmaintenance, (ii) individual farm development and creditapplications, and (iii) on farm works and aquacultureoperations after credit operations.

Implementation: BRI

BRI's components were cancelled on request of theGovernment effective 31 March 1989.

Training and Fellowships

Complied.In consultation with the Bank, DGF shall appoint a senior Item 2 (b), Schedule 6.professional manager with field experience as a full-timeProject Director who will head the PMO. The ProjectDirector shall be responsible directly to the DirectorGeneral of Fisheries.

Fellowships and local training shall be provided for the Item 8 (a), Schedule 6.purposes of the Project. Fellowships in brackishwateraquaculture, aquaculture engineering, and hatcherytechnology shall be provided for Project staff, and DGFshall forward to the Bank for its approval, a list of selectedcandidates, their qualifications, and the courses and

Complied.

PartlyItem 8 (b), Schedule 6

complied.

Item 10, Schedule 6. Complied.

item 11, Schedule 6

Complied.

Item 12, Schedule 6

Partlycomplied.

37

Appendix 7Page 3

Reference Status ofCompliance/Remarks

Loan Covenant

institutions selected for theft training. DGF shall ensurethat Project staff awarded fellowships shall be required towork for the Project or DGF for a reasonable period uponcompletion of their overseas training.

Local training of Project staff, including PPSs and PPLs,shall include, but not be limited to, the fields of extensionservices, hatchery technology, brackishwater aquaculture andaquaculture ellgneering.

Selection of Hatchery Sites

The Borrower shall make, or cause to be made, the finaldetermination of shrimp hatchery sites as soon as possibleduring Project implementation. Such decision shall beeffected with the assistance of the consultants and with theconcurrence of the Bank. To facilitate the fmal selection ofsuch sites, DGF shall collect water-quality data, includingtemperature, salinity, dissolved oxygen, ph, turbidity anddissolved solids, at weekly or more frequent intervals overa period of at least one year at each proposed site as wellas alternative sites. These measurements must becommenced no later than the Effective Date of the Loan.

Staffing

The Borrower shall appoint or cause to be appointedadditional staff as may be required for the purposes of theProject.

Land and Water Rights

The Borrower shall ensure that all land, rights over land,and rights over water required for the Project shall beacquired or otherwise made promptly available so as toensure timely implementation of the Project.

Procurement of Pumps and Vehicles

No longerrequired.

Before granting subloans for pumps, BRI in consultation Item 13, Schedule 6with DGF shall furnish to the Bank for comment thetechnical specifications of the pumps. The pumpspurchased by sub-borrowers shall conform to the technicalspecifications approved by the Bank.

Operations and Maintenance of Project Facilities

The Borrower shall ensure that the Project facilities are Item 16 (a), Schedule 6 P a r t 1 yproperly operated and adequately maintained, and shall complied.make adequate and timely provision of funds required forthis purpose.

Item 16 (b), Schedule 6

Notcomplied.

Item 17 (a), Schedule 6

Complied.

Item 17 (b), Schedule 6

P a r t 1 ycomplied.

Item 19, Schedule 6

P a r t I ycomplied.

The Borrower shall cause Bank Indonesia to provide BRI Item 18, Schedule 6with such local currency funds as will be required underPart B of the Project for on-farm development. Such fundsshall be provided on terms and conditions consistent withthe Kredit Investasi Kecil and Kredit Modal KerjaPermanen schemes.

Project Benefit Monitoring and Evaluation

38

Appendix 7Page 4

Reference

Status ofCompliance/Remarks

Loan Covenant

Without limitation of the above, DGWRD, in consultationwith DGF, shall prepare a comprehensive plan for theoperation and maintenance of the primary and secondarycanals rehabilitated under the Project and for the provisionof funds therefore. Such plan will be completed one yearbefore Project completion and submitted to the Bank forreview and comment.

The Borrower shall also ensure that adequate funds will beprovided for the operation and maintenance of shrimphatcheries under Part A of the Project, and to allow forrealization of production targets.

Consistent with the Borrower's policy to encourageoperation of shrimp hatcheries in the private sector, uponsuccessful initial operation, Project shrimp hatcheries maybe made available through purchase or long-term lease tocooperatives or to private or state companies. Prior to suchtransfer, DGF shall submit to the Bank for review andcomment the transfer terms and conditions which willensure management by experienced technical staff.

Local Currency Funds

In order to monitor the progress of the Project and itssocioeconomic impact, the Borrower shall ensure that DGF,through an appropriate organization and with the assistanceof other agencies of the Borrower, carries out evaluationsof the Project in accordance with the Bank's requirements.The evaluations shall assess the performance of the fishfarmers, shrimp hatcheries and rehabilitated canals, and, ifnecessary, suggest remedial measures. DGF shall beresponsible for the Project Benefit Monitoring andEvaluation (PBME). The design of the PBME shall bediscussed with the National Steering Committee on PBME.The Borrower shall cause DGF to furnish to the Bank forapproval a detailed plan for conducting these evaluationsand shall furnish the Bank with (i) a benchmark surveywithin twelve months of the Effective Date of the Loan, (ii)a mid-term survey within twelve months of the date whenthe second hatchery has been completed and hatcheryproduction of shrimp post-larvae has begun, and (iii) a finJsurvey within six months after completion of the Project.

No longerrequired.

LOAN DISBURSEMENT($000)

CD

I-h

(0

Co

CD

I-I.

CD

ccCD

'.0

Di

'1

0)

I-.

Category Category Name

01 A Civil Works - Canal Aehabilrtation - Part A

01 B Civil Works - Hatcheries . Part A

02 Consulting Services - Part A

03 Equipment, Materials, Facilities - Part A

04 Training and Fellowships - Part A

05A Local Exp, - Canal Rehab. Civil Works- Part A

05B Local Exp. - Local Training - Part A

05C Local Exp.- Consulting Services - Part A

050 Local Exp. - Civil Works (Canal Reheb. - Part A) LCFOP

05E Local Exp. - CMI Works (Hatcheries) LCFOP

05F Local Exp. - Local Training LCFOP

050 Local Exp. - Consulting Services LCFOP

05H Local Exp. - Vehicles LCFOP

051 Local Exp. - Hatchery, Civil Works - Part A

06 Credit Facilities for On-farm 0ev. - Part B

07 Unallocated (Parts A and B)

Total

Cummulative Amount

Cummulative Percentage

1984 1985 1986 1987 1988 1989 1990 1991 Total

- 182,067 32,432 1,383,031 1,732,509 1,752.312 296,295 629,783 6,008.429

- - 293,877 219,363 197,970 531,143 69,456 - 1,311,809

611306 370,305 261,945 380,896 365,023 257,003 7,938 - 2,254,416

- 43,051 35,865 536,848 822,721 760,150 435.027 - 2,633,662

- 132,568 264,540 - - - - 397,108

- - 20,540 895,435 1,030,789 1324,831 84262 - 3,355,857

- - - - - - - 0

- - 11,359 18,035 31,428 28,954 368 - 90,144

- - - 307,954 230,733 10,023 - - 548,710

- - 12,756 227,241 573,309 - - - 813,306

- - - - 73,751 - - - 73,751

- - 9,192 118,322 15,380 - - 142,894

- - - - - - - - 0

- - - - 22,086 382,050 27,577 - 431,713

- - - - - - - - 0

- - - - - - - - 0

611,306 727,991 933,314 3,977,995 5,198,641 5,061,846 920,923 629,783 16,061,799

611,306 1,339,297 2,272,611 6,250,606 11,449,247 16,511,093 17,432,016 18,061,799

3.38 7.42 12.58 34.61 63.39 91.41 96.51 100.001

CD-(4.

cc

Category

01 A

01 B

02

03

04

05A

05B

05C

05D

05E

05F

05G

05H

051

06

07

At Reallocation

5,973

1,194

2,970

967

384

3,888

20

92

0

0

0

0

0

0

1,594

5,918

23,000

5,973

1,194

2,500

2,110

384

3,888

20

92

812

1,600

130

158

400

0

1,594

2,145

23,000

C

(D

0-

N

REALLOCATION OF THE BANK LOAN($000)

Category Name

Civil Works- Canal Rehabilitation - Part A

Civil Works - Hatcheries - Part A

Consulting Services - Part A

Equipment, Materials, Facilities - Part A

Training and Fellowships - Part A

Local Exp. - Canal Rehab. Civil Works - Part A

Local Exp. - Local Training - Part A

Local Exp. - Consulting Services - Part A

Local Exp. - Civil Works (Canal Rohab. - Part A) LCFOP

Local Exp. - Civil Works (Hatcheries) LCFOP

Local Exp. - Local Training LCFOP

Local Exp. - Consulting Services LCFOP

Local Exp. - Vehicles LCFOP

Local Exp. - Hatchery, Civil Works - Part A

Credit Facilities for On-fern, Dev. - Part B

Unallocated (Parts A and B)

Total

LoanAgreement

5,973 5,973

1,194 1.194

2,970 2,970

967 967

384 384

4,000 3,980

0 20

0 0

0 0

0 0

0 0

0 0

0 0

0 0

1,594 1,594

5,918 5,918

23,000 23,000

At Reallocation At AtCancellation Reallocation Cancellation(31 Mar. 89) _1M) (19 June '90

5,973 6,303 6,303

1,429 1,429 1,348

2,500 2,500 2,500

2,526 2,526 2,526

400 400 400

3,438 3,438 3,438

0 0 0

92 92 92

430 430 430

813 813 813

74 74 74

143 143 143

0 0 0

470 470 470

0 0 0

2,389 2,059 0

20,677 20,677 18,537