Report No. 1468a-IND FILE COPYIndonesiaAppraisal of Irrigation VillMay 5, 1977

Projects DepartmentEast Asia and Pacific Regional Office

FOR OFFICIAL USE ONLY

Document of the World Bank

Thdocumet has a resbtted dstrioton and may be ued by recipents'ny in the perfrmance of thei ofial dutt0s. Its contents may nototherwvise'b iclsed without Vortd Bank authorzation.

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CURRENCY EQUIVALENTS

US$1.00 = Rupiahs (Rp) 415Rp 100 = US$0.241

Rp 1 million = US$2,409.64

WEIGHTS AND MEASURES - METRIC SYSTEM

1 millimeter (mm) = 0.039 inches1 meter (m) = 39.37 inches1 kilometer (km) = 0.62 miles1 square kilometer (sq km) = 0.386 square miles1 hectare (ha) = 2.47 acres1 cubic meter (cu m) = 35.31 cubic feet1 liter (1) = 0.264 gallons (USA)1 liter/second (1/sec) = 0.035 cubic feet per second1 kilogram (kg) = 2.2 pounds1 metric ton (ton) = 2,205 pounds

CONVERSION FACTORS FOR RICE

1 ton "dry stalk paddy" = 800 kg paddy ("paddy gabah")= 500 kg milled rice

1 ton paddy (gabah) = 630 kg milled rice

INDONESIA FISCAL YEAR

April 1 - March 31

FOR OFFICIAL USE ONLY

ABBREVIATIONS

ARD - Agency for Research and DevelopmentAV - Audio-visual

BIMAS - Bimbingan Hassal Swa Sembada Bahan Makanan- "Mass Guidance for Self-Sufficiency in Foodstuffs"

a farm input-credit package program

BRI - Bank Rakyat Indonesia - People's Bank of Indonesia

BULOG/DOLOG - Badan Urusan Logistik - "National Logistics Body"rice procurement agency/Depo Logistik - provincial

branch of BULOGBUUD - Badan Usaha Unit Desa - Forerunner of KUD as Village

Unit CooperativeDGC - Directorate General of CooperativesDGFC - Directorate General of Food CropsDGWRD - Directcr(ate)-General of Water Resources DevelopmentDIP - Project Implementation BudgetDP - Irrigation Service UnitELC-NK - Electro Consult - Nippon Koei

GOI - Government of Indonesia

HYV - High-Yielding VarietyINPRES - Instruksi Presiden - "Presidential Instruction"

- a rural public works programIPEDA - Iuran Penbangunan Dearah - Land TaxKUD - Koperasi Unit Desa - Village Unit CooperativeMIHA - Ministry of Home Affairs140A - Ministry of AgricultureNFCE - National Food Crops Extension ProjectO&M - Operation and maintenancePPL - Lower Level Extension WorkerPPM - Senior Level Extension WorkerPPS - Subject Matter SpecialistP2AT - Proyek Pengembangan Air Tanah - an executive body within

DGWRD responsible for nationwide groundwater investi-gations and development

PROSIDA - Proyek Irigasi IDA - Agency of DGWRD created to executeIDA-assisted projects

REC - Rural Extension CenterSEDEKU - Semarang-Demak-Kudus Irrigation System in Central Java

This document has a restrited distribution and may be ued by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

INDONESIA

APPRAISAL OF IRRIGATION VIII

TABLE OF CONTENTS

Page No.

SUNMARY AND CONCLUSIONS i-iii

1. INTRODUCTION ......................... . 1

2. BACKGROUND ...... . 1

The Economy ................. ..... 1Agricultural Production . . . . . . . . . . . . . . .Project Formulation . . . . . . . . . . . . . . . . . . . . . .

3. THE PROJECT AREA . . . . . . . . . . . . . . . . . . . . . . . . s

Climate ... . . . . . . . . . . 4

Soils and Topography ................... . .Population, Farm Size and Land Tenure . . . . . . . . . . . . . 4Agricultural Production .............. ... . . 5Storage, Processing and Marketing . . . . . . . . . . . . . . . 6Agricultural Support Program ............. . .... 7Transportation . . . . . . . . . . . . . . . . . . . . . . . . 7Operation and Maintenance .............. ... .. 7

4. THE PROJECT .......................... . 8

Project Works . . . . . . . . . . . . . . . . . . . . . . . . . 9Technical Assistance . . . . . . . . . . . . . . . . . . . . . 11Consulting Services . . . . . . . . . . . . . . . . . . . . . . 12Water Supply, Demand and Quality . . . . . . . . . . . . . . . 13Status of Engineering . . . . . . . . . . . . . . . . . . . . . 14Implementation Schedule ................... . 15Cost Estimates ....................... . 15Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Procurement ......................... . 16Disbursements . . . . . . . . . . . . . . . . . . . . . . . . . 18Accounts and Audits ..................... . 18Environmental Effects . . . . . . . . . . . . . . . . . . . . . 18

Page No.

5 . ORGANIZATION AND MANAGEIENT . . . . . . . . . . . . . . . . . . 19

Organization . . . . . . . . . . . . . . . . . . . . . . . . . 19Agricultural Support Services . . . . . . . . . . . . . . . . 20Monitoring Benefits . . . . . . . . . . . . . . . . . . . . . 21Operation and Maintenanc,e . . . . . . . . . . . . . . . . . . 21Cost and Rent Recovery ....... . ........... 23

6. PRODUCTION MARKET PROSPECTS, PRICES AND FARM INCOME . . . . . . 25

Production . . . . . . . . . . . . . . . . . . . . . . . . . . 25Market Prospects ..................... 26Prices . .. . . . . . . . .. . . . . . . . .. . . . . . . . 26

Farm Income . . . . . . . . . . . . . . . . . . . . . . . . . 27

7. BENEFITS, JUSTIFICATION AND RISKS . . . . . . . . . . . . . . . 28

8. AGREEMENTS REACHED AND RECOMMENDATION . . . . . . . . . . . . . 29

ANNEXES

1. Climatological Data2. Agricultural Production3. Agricultural Supporting Services4. The Project Works5. Water Supply, Demand and Quality6. Consulting Services7. Cost Estimate8. Schedule of Expenditures9. Training10. Operation and Maintenance11. Commodity and Fertilizer Prices12. Crop and Farm Budgets13. Farm Labor Analysis14. Economic Analysis15. Cost and Rent Recovery

CHARTS

8964 PROSIDA Subproject Organization16008 PROSIDA Management Organization16017 Water Resources Organization Chart16940 Estimated Opportunity Cost for Farm Labor: Ciujung16941 Estimated Opportunity Cost for Farm Labor: Madiun16987 Madiun Rehabilitation, Projected Crop Calendar

Madiun Groundwater Pilot Project, Water Balance Charts16988 Balong Scheme - Area A

16989 Balong Scheme - Area B

16990 Tanon Scheme17144 Caruban Scheme16991 Mtadiun Groundwater Pilot Project, Implementation Schedule16997 Madiun Rehabilitation Implementation Schedule16998 Ciujung Drainage Implementation Schedule17135 P2AT Organization, Madiun Groundwater Pilot Project

MAPS

12631 Location Map12633 Ciujung Drainage12634 Madiun Rehabilitation and Groundwater Pilot Project

PROSIDA Mapping12636 Credit 127-IND12637 Credit 220-IND12638 Credit 289-IND12640 Loan 1100-IND12641 Loan 1268-IND

INDONESIA

APPRAISAL OF IRRIGATION VIII

SUMMARY AND CONCLUSIONS

1. Agriculture accounts for over 40% of Indonesia's GDP, about 66% ofits employment and nearly 80% of its non-oil exports. Rice, which accountsfor 30% of agricultural production, is the staple food and, throughout theFirst Five-Year Plan period (1969-74), Government programs concentrated onexpanding its production. Despite these programs, rice imports continue at arate in excess of 1.0 million tons per year, and self-sufficiency in rice hasremained a priority goal of the Government's Second Five-Year Plan (1974-79).

2. The Government of Indonesia (GOI) has requested Bank assistance tocarry out the proposed project, the eighth Bank-assisted project aimed atincreasing domestic rice production. With the exception of one project thatis assisting in the extension of an existing system (Credit 514-IND) andanother (Loan 1268-IND) that is introducing tertiary systems on part of theareas covered by the first four credits, all the ongoing projects, includingone that was completed in March 1976 (Credit 127-IND), have concentrated onrestoring major engineering works of existing irrigation systems to theiroriginal design capacities in the shortest possible time. Construction workson the six ongoing projects is progressing well, although rising costs dueto inflation have created budgetary constraints, resulting in delays in theprojects' completion. Operation and maintenance (OS&) services on the com-pleted systems, which have been unsatisfactory in the past because of theinsufficiency and untimely availability of O&M funds, have improved followingthe allocation by the Central Government of substantially higher levels (30%over 1975/76 levels) of O&M funds in its 1976/77 budget. To upgrade O&Mservices to acceptable standards, however, there is further need for evenhigher levels of O&M funds, timely release of these funds, and an increase inthe number of qualified O&M personnel to effectively utilize the availablefunds. To this end, GOI has agreed to allocate to the Bank-assisted irriga-tion systems, in FY77/78, O&M funds totaling about Rp 3,350 million, of whichabout Rp 2,900 million would be for about 783,000 ha of rehabilitated systemsand the balance of Rp 450 million for about 330,000 ha to be rehabilitated inthe projects' remaining construction period. Although the above O&M fundsare only 10% higher than FY76/77 levels, substantial improvements in O&Mservices are expected due to GOI's agreement to take the necessary stepsto ensure that at least half of the budgeted O&M funds would be released tothe subprojects by August 15 of each year and the balance, in equal quarterlyinstallments thereafter, until the total budgeted amounts are fully released;and to progressively increase the number of qualified 0&M personnel inthe Bank-assisted projects until the additional numbers to be established byGOI in consultation with the Bank are employed.

3. The proposed project would initiate the rehabilitation and improve-ment of the 140,000 ha Madiun irrigation system, the last major system inJava that is in need of rehabilitation. Because of GOI budgetary constraintsand the long construction period required to complete rehabilitation of the

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entire system, the works under the project would be initially limited to75,000 ha within the oldest and most severely deteriorated systems, includingtertiary development /1 on 30,000 ha of these systems. Planning and designwould continue on the remaining 65,000 ha, which would be rehabilitated at alater stage when GOI budgetary capability permits. The proposed projectwould also assist in: (a) establishment of a 2,800 ha groundwater pilotproject at three separate locations in the Madiun-Solo area, which would beused to identify and evaluate technical and management alternatives forconjunctive surface and groundwater development in the area; (b) constructionof a drainage and flood control scheme for about 5,700 ha of the Ciujungsubproject, a coastal area served by an irrigation system that was rehabili-tated with Bank assistance, but where flooding and drainage problems continueto inhibit the realization of optimal benefits; and (c) the employment ofconsultants to assist PROSIDA /2 in carrying out tertiary designs on155,000 ha of the Cirebon and Rentang subprojects; extension of an ongoingaudio-visual training program for operation and maintenance and constructionsupervision of irrigation facilities, and construction of a training center,dormitory for trainees and staff housing; establishment of a centralizedrecords depository and retrieval system and a text processing system fordocuments related to Bank-assisted irrigation projects; and production ofadditional large-scale maps with 0.5 m contours covering all unmapped areasof the PROSIDA systems. The project components would require about 3,100man-months of consultant services, of which 2,600 man-months would be pro-vided by Indonesian consultants.

4. The estimated cost of the proposed project is US$118 million(Rp 48,995 million), of which US$58.8 million or approximately 50% would bein foreign exchange. The Bank loan of US$63 million would finance the fullforeign exchange cost of the project (US$58.8 million) and US$4.2 million oflocal costs associated with financing expenditures of local consultants tothe same degree (80% of total cost) as foreign consultants. Vehicles andequipment (US$5.1 million) would be procured under international competitivebidding procedures in accordance with Bank Group guidelines. The construc-tion of drainage structures in Giujurng and small structures for tertiarysystems, small pumphouses, tubewells, buildings, and housing in Madiun, whichare scattered over a wide area and time span, would not be of interest tointernational contractors. This would also apply to the Madiun rehabilita-tion works, which would be impracticable to group into contracts largeenough to attract international competition, since they consist of a largenumber of small, widely scattered and differing construction activities.These works would, therefore, be carried out by force account (US$14.2million) and locally advertised contracts (US$80.6 million), suitable for

/1 Tertiary development consists of the construction of tertiary and quater-nary canals and drains. Although all 75,000 ha would ultimately requiretertiaries, the initial area to be developed under the project was limitedto 30,000 ha due to current GOI implementation constraints.

/2 An agency of the Directorate General of Water Resources Development whichwas created to execute IDA-assisted projects.

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large local contractors and joint ventures of smaller local firms. Consultingservices, mapping and training would cost US$18.1 million. Contingenciesincluded in the above costs would amount to US$41.5 million, of which US$24.3million would be for expected price increases during the 4-1/2 year construc-tion period.

5. PROSIDA, which completed one and is currently executing four otherBank-assisted irrigation projects, would be responsible for implementing theMadiun Rehabilitation and Ciujung Drainage components of the proposed project.P2AT, another agency of the DGWRD, which is carrying out groundwater investi-gations in the Madiun-Solo area under Credit 289-IND and Loan 1100-IND, wouldbe responsible for establishing the Madiun groundwater pilot project.

6. The economic rates of return on the project components would be 21%for the Madiun Rehabilitation, 18% for Ciujung Drainage and 13% for theMadiun-Solo groundwater pilot project. Excluding the groundwater pilotproject, the rate of return on each part of the project under a number ofadverse assumptions would not fall below 14%.

7. The proposed project is suitable for a loan of US$63 million for aterm of 20 years, including a grace period of 4-1/2 years.

1. INTRODUCTION

1.01 The Government of Indonesia (GOI) has requested Bank assistancein rehabilitating and improving existing headworks and canals serving 75,000ha and introducing tertiary systems /1 on 30,000 ha of the 140,000 ha Madiunirrigation system, the last major system in Java in need of rehabilitation;constructing flood control and drainage works and inspection roads on 5,700ha of low-lying coastal land in the Ciujung irrigation system in West Java;and establishing a 2,800 ha groundwater pilot project at three separatelocations in the Madiun-Solo area near the provincial boundary of Central andEast Java. This would be the eighth Bank-assisted project for improving andpromoting irrigation development in Indonesia.

1.02 The feasibility study for Madiun rehabilitation (Stage I) was pre-pared by PROSIDA /2 with consultant assistance (ELC-NK); for Ciujung drainage,by PROSIDA; and for the Madiun-Solo groundwater pilot project, by P2AT /3 withconsultant assistance (ELC-NK). This report is based on the findings of anappraisal mission composed of Messrs. J. T. Caparas, J. J. O'Brien, M.Saddington, C. J. Poortman (Bank), K. Anderson, A. Feinstein and P. Judd(Consultants), which visited Indonesia in October/November 1976.

2. BACKGROUND

The Economy

2.01 The latest economic report on Indonesia, "Indonesia: Recent Develop-ments and Medium-Term Perspective," of March 8, 1977 (1516-IND), reviewed themedium- and long-term outlook for the Indonesian economy. That report alsoexamined the outlook, potentials and problems of Indonesian agriculture. Themain findings of that report are summarized in the President's Report for thisproject.

Agricultural Production

2.02 Agriculture, together with forestry and fishing, accounts for over40% of Indonesia's GDP. The sector also provides part- or full-time employmentfor about 70% of the total labor force in Indonesia, and accounts for about80% of the value of non-oil exports. Over the last five years the volumeof total rural output increased at an average rate of between 4% and 5% per

/1 Tertiary systems consist of tertiary and quaternary canals and drains.

/2 Proyek Irrigasi IDA - Agency of Directorate General of Water ResourcesDevelopment (DGWRD), which was created to execute IDA - assisted projects.

/3 Proyek Pengembangan Air Tanah - an agency of the DGWRD that is supervisinggroundwater investigations in the Madiun - Solo valleys and other areasin Indonesia.

annum; however, the volume of rice production, the country's staple food, hasbeen growing at between 3.5% and 4% over the same period. This growth ratein supply has not been enough to meet demand, and food grains still need tobe imported. Specific programs to boost rice production have been includedin both of Indonesia's Five-Year Plans (Repelita I covering 1969-74 andRepelita II covering 1974-79). These programs include rehabilitation ofexisting irrigation systems, creating rice price support policies, providingfunds for research and extension, and improving the supply of seed, fertilizer,pesticide and credit. The Bank has been involved in various ways with all ofthese programs and the Government's actions have been relatively successful.

2.03 However, despite improvements in production and institutionalsupport, various studies indicate that unless foodgrain production inIndonesia can be stimulated to grow at a rate of at least 4% per annum, thecurrent gap between supply and demand will widen in the future. The Govern-ment has set its sights on self-sufficiency in foodgrains. However, toachieve that goal there will be a continued need for adequate supplies ofcredit, certified and high yielding varieties of seed, fertilizer and pesti-cides. In addition, there is a need to improve irrigation facilities anddrying and storage facilities for grains.

2.04 Although production of secondary field crops (palawija) /1 isbelieved to have declined during Repelita I partly because of shifts ofland use to rice production, their position remains significant. UnderRepeLika II, their production is being revitalized, and the Government hasextended the BIMAS agricultural support program to several of these crops.The Government has also begun research to improve palawija crop yields and,through the INPRES program, construction of market facilities at subdistrictand village levels.

Project Formulation

2.05 Following nearly thirty years of neglect, virtually the entire1.5 million ha of Government maint3¶ned irrigation systems, which are locatedmainly in Java, were in need of rehabilitation. Rehabilitation work (onabout 1.0 million ha) was started under Repelita I, with about 840,000 ha onnine major systems being rehabilitated with financial assistance from fourBank Group Credits. Subsequently, three more projects totaling 150,000 hahave received Bank Group assistance during the current Repelita. Because ofthe large volume of work required on the systems, initial rehabilitationcovered only the most essential aspects to put the systems back in near normalworking condition. This consisted primarily of reconstructing headworks andweirs, primary and secondary canals and appurtenant structures.

2.06 Aside from extending and rehabilitating existing systems, thefifth, sixth and seventh irrigation projects provided assistance for the

/1 Palawija crops are those other than rice, sugarcane and estate crops;major ones are soybeans, corn, casSava, groundnuts, green beans andvegetables.

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development of tertiary and quaternary canal systems to eliminate theinefficient irrigation practices that required water to travel from secondarycanals over 50 to 100 plots before reaching the farthest fields in thecommand area.

2.07 Under the proposed project, GOI would initiate the last majorsystem rehabilitation on the 140,000 ha Madiun irrigation system. Due to GOIbudgetary constraints and the long construction period required to completerehabilitation of the entire 140,000 ha, however, the works to be carried outunder the project are limited to 75,000 ha (Stage I) of the oldest and mostseriously deteriorated systems, and include tertiary development on30,000 ha /1 of these systems. Planning and design work would continue forthe rehabilitation of the remaining 65,000 ha (Stage II), which would beimplemented under a future project, along with tertiary development on theremaining 110,000 ha. A pilot groundwater scheme in the Madiun-Solo areawould be constructed to develop techniques for joint surface and groundwateruse and to serve as a guide for other areas of Indonesia.

2.08 There are about 50,000 ha of land within irrigation systems rehabi-litated with Bank assistance that continue to suffer from excessive floodingand surface drainage problems which inhibit realization of optimal benefits.PROSIDA completed a detailed survey, study, and development plan for improve-ment of a sample area of 2,000 ha with those problems to determine the type,number and cost of the improvement works required. The results of that studywere extrapolated to the 5,700 ha in the 24,300 ha Ciujung subproject becauseof hydraulic and topographic similarities between the two areas, and weremade the basis for appraising the works to be constructed under the project.For other areas where the sample study data are not applicable, PROSIDA wouldcarry out sample area studies for each specific area and, depending upon theresults, financing for construction could be considered under future projects.

3. THE PROJECT AREA

3.01 The Madiun rehabilitation project area is part of the 140,000 haMadiun irrigation system in East Java province. It consists of 26 irrigationsystems, varying in size from 140 ha to 11,800 ha, and covering 75,000 ha.The area includes about 60,400 ha of fully developed and controlled irrigationsystems, about 7,200 ha of less developed and insufficiently controlledsystems, and 7,400 ha of simple or village irrigation. The Madiun River andits tributaries are the main source of irrigation water. Lesser sources arethe Solo River, its tributaries and springs. The Ciujung drainage projectarea consists of 5,700 ha in 16 parcels of irrigated land within the 24,300 haCiujung subproject area in West Java province. Although PROSIDA is currently

/1 Although all 75,000 ha would ultimately require tertiaries, the initialarea to be developed under the project was limited to 30,000 ha due tocurrent GOI implementation constraints.

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rehabilitating the Ciujung subproject under Credit 220-IND, this Credit didnot provide for the drainage works required on the low-lying 5,700 ha.

Climate

3.02 The climate in Java is tropical and monsoonal. Temperatures varyonly a few degrees around the annuaL average of 26°C in the lowlands wherethe projects are mainly located. At Madiun annual average temperatures inthe higher lands are slightly lower than 26 C. Improved rice varieties donot perform well above 500 m, and these areas are better suited for uplandrice or temperate vegetable crop production. Throughout the Madiun projectarea, however, the temperature regime is suitable for year round cropping.Daylight periods are almost constant- throughout the year. The rainy seasonextends from November through May (northwest monsoon) and the dry season fromJune through October (southeast monsoon). Mean annual precipitation variesfrom about 1,600 to 2,000 mm. Further details of climatic conditions in thespecific project areas are given in Annex I.

Soils and Topography

3.03 The MIadiun project area is located on the slopes and flood plainof the Madiun and Solo river watersheds. It is bounded on the west by amountain range containing Lawu mountain, and on the east by the slopes ofWilis mountain. The Kendeng hills are the northern boundary, and a low rangeof hills the southern. Most of the proiect area is located on the valleyfloor. The soils are largely of volcanic origin and are mainly alluvial andgrumosols. They range from clay loams through silty clay loams to heavyclays with good depth, and all have moderate permeability except for theheavier clays which are highly impermeable. The soils are slightly acid toalkaline in reaction, and have fairly high organic matter and clay contentand a relatively high cation exchange capacity. Total nitrogen and phosphoruslevels are moderate to low, and all soils show good crop response to nitrogenapplication. Many soils respond to phosphate, but the phosphate deficientareas are not well defined. The lower areas are ideal for rice cultivation,while palawija crops do better on the higher, well-drained, lighter soils.

3.04 The Ciujung project area is situated on the low, estuary lands ofthe Ciujung river. Because of the river's low gradient, it floods all ormost of the project area annually. The soils are alluvial and of volcanicorigin. They are slightly acid, and respond positively to nitrogenous andphosphatic fertilizer. Except for the poor surface drainage, they are wellsuited for rice growing.

Population, Farm Size and Land Tenure

3.05 Rehabilitation of the Madilun area would serve an estimated ruralpopulation of 1.1 million, made up of about 150,000 farm-and 42,000 landless-laborers-families. At Ciujung, the project would serve about 100,000 people,consisting of 11,500 farm-and 5,000 :Landless-laborers'-families. The averagefamily is about six persons.

3.06 Farm size and land tenure data are sketchy. Information from localofficials suggest an average farm size of 0.5 ha in both project areas. Thefollowing is a rough estimate of the distribution of holdings:

No. of CultivatedFarm Size Farms Area

(ha) ------ (%)

Madiun

Less than 0.5 60 270.5-1.0 27 331.0-2.0 11 312.0-5.0 2 9

More than 5.0 - -

Ciujung

Less than 0.5 64 400.5-1.0 25 301.0-2.0 10 25

More than 2.0 1 5

3.07 At Madiun, some 80% of the farmers are owner-operators, and 20%sharecroppers, while at Ciujung an estimated 60% are owner-operators and 40%sharecroppers. In most sharecropping arrangements, the tenant and the land-owner equally share total production, and input and harvesting costs. Thetenant provides the labor and the landowner pays the land tax. Landlesslaborers comprise some 22% of the rural population at Madiun, and 30% atCiujung.

Agricultural Production

3.08 Irrigated rice is the most important crop in the Madiun rehabilita-tion area. During the wet season, paddy is irrigated on 65,700 ha andsugarcane on the remaining 9,300 ha. During the dry season the sugarcanearea plus 15,000 ha of paddy are also irrigated. Additionally, 65,500 ha ofsecondary crop (palawija crop) are partially irrigated. About 30,000 ha ofthe palawija area is planted in April-May, and the remaining 35,000 ha inJuly-August. About 9,000 ha of this area follows sugarcane, which is har-vested from June through August. Soybeans is the major palawija crop. Whilecropping intensity varies from 140% in the poorly-watered areas up to 270% inthe better-watered areas, the overall cropping intensity is about 208%.Farmers plant 80% of their rice areas to high yielding rice varieties (HYVs)in the wet season, and 70% in the dry season. Average wet-season paddyyields 3.2 ton/ha,/l dry-season paddy 2.8 ton/ha; early soybeans 0.6 ton/ha,

/1 Present wet-season paddy yields vary from 1.8 ton/ha to 6.0 ton/ha, anddry-season paddy yields from 1.1 ton/ha to 4.9 ton/ha. On an irrigationsystem's basis, average weighted wet-season ields vary from 2.2 ton/hato 5.0 ton/ha, and dry-season yields from 2. ton/ha to 4.0 ton/ha.

late soybeans 0.44 ton/ha; factory sugarcane 100 ton/ha, and farmer sugarcane70 ton/ha. Although paddy yields are relatively high, they are still belowthe area's potential due to poor water management and distribution, inadequatewater supplies and unsatisfactory agricultural input services. While soybeansare irrigated, most crops suffer moisture stress and are mainly dependent onrainfall and residual subsoil moisture from the preceding crop. Even thoughsugarcane has first priority on available water supplies, farmer grown canesuffers from poor management.

3.09 At Ciujung, during the wet season, farmers irrigate paddy over theentire 5,700 ha, and in the dry season on about 850 ha, giving a 115% annualcropping intensity. Because of flooding during December to February, farmersusually have to replant, often several times, considerable portions of theirwet season crops. Average wet-season paddy yields 2.2 ton/ha, and dry seasonpaddy 2.6 ton/ha. The flooding not only reduces yields, increases crop pro-duction costs, damages irrigation facilities, discourages farmers from usingcredit, HYV seed, fertilizer, other inputs, and constructing tertiary andquaternary canals and drains, but, by extending the wet-season cropping period,it also reduces the area of dry-season crop farmers can plant. Annex 2 pro-vides more detail on agricultural production.

Storage, Processing and Marketing

3.10 Farmers sun-dry paddy and store it in their houses. Insufficientconcrete drying floors makes drying of the wet-season crop difficult, andlosses often occur because of rainfal:! during the drying period. Sincefarmer storage space is not always vermin proof, and cannot be readilyfumigated, losses from rodents and insects are also high. The project areashave more than sufficient milling capacity to handle current production. Forexample, in the Madiun project area farmer cooperatives (BUUD/KUDs) andprivate individuals own some 450 rice mills and hullers, with an annualcapacity of 360,000 tons of paddy compared to the current area production of283,000 tons. Future increases in denmand for milling capacity can be readilymet. The rice milled is medium grade, around 35% broken.

3.11 At the Hadiun project area, farmers sell about one-third of thetotal annual paddy production to BUUD/KUDs and middlemen. At Ciujung, lessthan 10% of the total annual paddy crop is sold. The BUUD/KUDs act as thepurchasing agent of the Government's paddy/rice marketing agency (BULOG/DOLOG),and buy a standard grade of paddy at a fixed floor price. The floor price iscurrently Rp 70 (US$0.17)/kg for 14% moist paddy at the village. Althoughduring nonharvest periods, prices on the open market are usually higher thanthe floor price, farmers are often forced to sell their paddy below the floorprice during the wet-season harvest. In some cases inadequate facilitiesprevent paddy from being dried to the required 14% content standard. Inother cases, BUUD/KUDs exhaust their credit lines from BULOG and are unableto obtain cash to pay the farmers. The farmers, who need cash immediately tomeet tax payments or to pay off the last season's debts so that they canpurchase inputs for the new season, are then forced to sell their paddy onthe open market at a discount.

3.12 Farmers sell their surplus palawija crop production in village andsubdistrict markets. Five Government-owned and one private sugar factory atMadiun handle the processing of sugarcane and marketing of sugar.

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Agricultural Support Program

3.13 The BIMAS program provides farmers with subsidized credit, fertilizer,agrochemicals; allowances for HYV seed, spraying, and cost of living; andextension advice for crop production. At Madiun the BIMAS program covers 75%of the irrigated wet-season paddy crop, 37% of the irrigated dry-season paddy,and 5% of the palawija area. At Ciujung it covers 42% of the wet-seasonpaddy and 6% of the dry-season paddy areas.

3.14 The National Seed Corporation at Sukamandi (Credit 246-IND) produceslimited suplies of certified paddy seed. This is distributed through BUUD/KUDs at Rp 150/kg. At Madiun, seed growers who obtain their planting materialfrom district seed farms of the Provincial agricultural services supplypractically all available certified seed.

3.15 In all project areas, staff of the Directorate of Food Crops Agricul-ture within the Ministry of Agriculture (MOA) provide extension services tofarmers. Although all farmers are entitled to extension services, only BIMASrecipients currently receive extension advice due to the shortage of trainedstaff. The National Food Crops Extension Project (Loan 1267-IND) is correctingthis deficiency. Annex 3 gives more details of agricultural support programs.

Transportation

3.16 National highways and railroads connect the Madiun area to Surabayaand Jakarta, and the Ciujung area to Jakarta. The railway provides reasonablygood passenger service, but offers only limited freight service. The nationalhighways are paved and generally well maintained. While provincial, districtand village level roads in the Madiun area are in reasonable condition andgenerally passable during the wet season, this is not so at Ciujung. Herethe rural road system is in extremely poor condition and, as a result, thetransport of agricultural inputs to, and agricultural production from, thevillages is hindered. Although a Government works program (INPRES) helps inmaintaining some of these roads, upgrading and rehabilitation works would benecessary to provide adequate transport links within the Ciujung projectarea. Additionally, the construction of adequate fertilizer storage at thevillage level would help offset poor transport links between the villages andthe district center.

Operation and Maintenance

3.17 Irrigation systems in Indonesia are generally operated at gatesettings established from long experience. Constraints to more efficientoperation are: (a) lack of dependable communications, which would allowrapid adjustment of canal flows based on local requirements and rainfall;(b) the unwieldy process of operating large, heavy gates with manpower andold-fashioned winches; (c) insufficiency of measuring devices in primarycanal intakes and major secondary bifurcations; and (d) shortage of trainedoperating personnel. Constraints to effective system-wide maintenancedespite a substantial increase in operation and maintenance (O&M) fundallocations in FY76/77 (30% above FY75/76 levels) are the untimeliness of

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fund releases for this purpose and the insufficiency of maintenance personnel.Funds provided under the project woulcl correct the above operational deficien-cies in the project area by assisting GOI in establishing a substantialtelephone communications network, constructing additional measuring devicesnear canal intakes and major canal bifurcations, and modifying existing gatesand gate structures to facilitate gate! operation with motor-driven devices.The proposed project would also address the inadequacies in systems operationand maintenance resulting from the untimeliness of the O&H fund releases andthe insufficiency of O&M personnel (para. 5.11). Loans 1100- and 1268-INDand the proposed project would provide overseas and local in-service trainingfor design and O&M personnel.

4. THE PROJECT

4.01 The proposed project would include:

(a) rehabilitation and improvement of irrigation systems serving about75,000 ha in the Madiun area, including 30,000 ha of tertiarydevelopment in these systems (Map 12634);

(b) construction of a pilot groundwater scheme for about 2,800 ha atthree different locations in the Madiun-Solo area (Map 12634);

(c) improvement of flood control, drainage and road networks on5,700 ha of low-lying coastal land in the Ciujung area, which wasrehabilitated under Credit 220-IND (Map 12633);

(d) technical assistance to PROSIDA for the expansion of the audio-visual training aids program that was started under Loan 1100-IND,design of tertiary irrigation and drainage systems by local consul-tants for 155,000 ha in the 180,000 ha Cirebon and Rentang subpro-jects, additional large scalea mapping on all PROSIDA project areas(Maps 12636-12641); a text processing and a centralized recordsdepository and retrieval systzem for documents related to previousBank-assisted irrigation projects; and

(e) local and overseas in-service training of design and O&M staff(Annex 9).

4.02 The 140,000 ha Madiun irrigation system consists of 117 distinctsystems served by about 1,200 headworks, 120 km of main canals, 700 km ofsecondary canals and about 2,500 hydratulic structures. The 75,000 ha sche-duled for execution under the proposed project (Stage I) are served by 26irrigation systems whose headworks and conveyance systems are badly in needof rehabilitation. The 30,000 ha of tertiaries on these systems would beconstructed to the standards developed under Loan 1268-IND. Tertiary canalswould deliver water to units of about 150 ha. Quaternary canals taking offfrom the tertiaries would convey water to units of about 10-15 ha; belowthat level, irrigation would be from field to field. Local consultants tobe engaged under the project (para. 4.06) would prepare the design and

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construction drawings. PROSIDA would lay out the systems and construct thecontrol structures. Farmers would excavate the tertiary and quaternary canalsunder the direction of PROSIDA, at daily wage rates equal to the prevailingrates for work done under the INPRES program.

4.03 The groundwater pilot project would consist of the Tanon pilotscheme in the Upper Solo valley, which would provide a year-round groundwatersupply for about 300 ha of currently rainfed land, and the Balong (1,300 ha)and Caruban (1,200 ha) pilot schemes in the Madiun valley, which would pro-vide supplemental groundwater supplies to existing irrigation systems thatcurrently provide limited dry season surface water supplies. The existingsystems in the Balong and Caruban pilot areas lie within, and would berehabilitated and upgraded under, the Madiun rehabilitation subproject. Threetest wells in the Tanon pilot area, which were drilled, cased and testedduring groundwater investigations carried out under Credit 289-IND, would beconverted into production wells by equipping them with turbine pumps anddiesel primemovers. Nineteen new production wells in the Balong pilot areaand eleven in the Caruban pilot area would be drilled and cased under theproject. In addition, the project would provide assistance in equipping theeight remaining test wells in the study area with diesel engine-driven turbinepumps, to enable the continuing evaluation of groundwater potential for anadditional 30,000 ha.

4.04 Consulting services, both expatriate and local, would be financedto provide assistance for the Madiun rehabilitation and groundwater segmentsof the project, for design of the Cirebon-Rentang tertiary systems, forCiujung drainage construction supervision and for assistance in the audio-visual training aids program and the records depository and retrieval system.Total consulting services would amount to about 3,100 man-months, includingabout 480 man-months of expatriate and 2,625 man-months of local services.The details of the consulting services to be provided are discussed inparas. 4.06 to 4.12 and Annex 6.

Project Works

4.05 Details of the project works are given in Annex 4 and are summarizedas follows:

Madiun Rehabilitation

(a) rehabilitation or reconstruction of 216 headworks;

(b) rehabilitation of 440 km of primary and secondary canals,including 1,400 structures, channel clearing, and lining;

(c) improvement of tertiary works on 30,000 ha;

(d) improvement of drainage systems;

(e) construction of buildings and housing for O&M personnel;

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(f) improvement of about 450 km /1 of inspection and access roads;

(g) improvement of 338 km of telephone communications lines foroperation and maintenance; and

(h) procurement of vehicles and equipment.

Madiun-Solo Groundwater Pilot Project

(a) drilling, casing and developing to depths of 100-150 m about30 wells (19 in Balong and 11 in Caruban) that are expectedto yield 40-75 1/sec and command 55-110 ha each;

(b) procurement and installation of 44 turbine pumps with dieselprimeovers /2, and construction of suitable pumphouses for thewells;

(c) rehabilitation of about 15 km of inspection and access roadsand construction of 4 km of new roads;

(d) construction on the Tanon pilot area of about 3 km of tertiaryand 15 km of quaternary canals and 3 km of tertiary and 15 kmof quaternary drains;/3 and

(e) procurement of vehicles and equipment.

Ciujung Drainage

(a) rehabilitation and improvement of 23 gated control structures,6 weirs, 21 box culverts, 91 pipe drains, and 6 check dikes,all appurtenant to existing surface drainage systems;

(b) rehabilitation of about 150 km of existing secondary drains andconstruction of about 30 km of secondary and 7 km of primarycollector drains, including raising or rehabiltation of floodprotection and road embankments;

/I Some 120 km of district roads that are used for access to the project aremaintained by the Kabupatens (Districts) and would not require assistanceunder the project.

/2 Six turbine pumps would be spares, iand five turbine pumps would beinstalled elsewhere in the groundwater study area to convert existingtest wells into production wells. In addition six turbine pumps would beprocured under Loan 1100-IND to convert the remaining test wells in thestudy area into production wells.

/3 Tertiary and quaternary canals and drains for the Balong and Caruban pilotschemes would be constructed under the Madiun rehabilitation subproject.

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(c) dredging of 7 km of river channel coupled with the reconstructionor raising of flood protection embankments;

(d) bituminous surfacing of 5 km of existing road, reconstruction offive bridges and construction of about 50 km of gravel-surfacedall weather roads and 150 km of dirt roads along the drainageembankments; and

(e) procurement of vehicles and equipment.

Technical Assistance

(a) Audio-visual Training Aids Program

(i) extension of an existing contract (NEDECO) for provision ofaudio-visual (AV) tape recorded training programs on operationand maintenance of irrigation systems, including trainingof counterpart AV staff;

(ii) extension of the AV program to cover construction supervision;

(iii) procurement of AV equipment for implementing the program; and

(iv) construction of an AV training center, dormitory for traineesand staff housing within the compound of the Ministry ofPublic Works Regional Training and Education Center inSurabaya.

(b) Cirebon-Rentang - provision of local consulting services toprepare detailed design and construction drawings for tertiarieson 155,000 ha of the 180,000 ha service area of these systems,which is beyond the capability of PROSIDA to accomplish in atimely manner, and for which construction assistance was providedunder Loan 1100-IND.

(c) Mapping - on the service areas of the PROSIDA systems and theSEDEKU /1 irrigation system, consisting of:

(i) production of aerial photography on a scale of 1:10,000for 380,000 ha;

(ii) rectified photo mosaics on a scale of 1:5,000 for abott450,000 ha; and

(iii) contour mapping on a scale of 1:5,000 with contour intervalof 0.5 m for 800,000 ha.

/1 A system to be financed under a US$35 million loan for the Irrigation IXproject, which was negotiated concurrently with this project.

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(d) Records Depository and Retrieval and Text Processing Systems

(i) construction of climate controlled records buildingadjacent to the PROS]:DA headquarters in Jakarta;

(ii) procurement and installation of a text processing system,and equipment for recording, storing, and retrieving documentson microfilm and reproduction of stored material; and

(iii) technical assistance for system development and overseastraining of staff in records management.

Consulting Services

4.06 Consulting services (ELC-NK) for preparation of the Madiun Rehab-ilitation feasibility report, as well as subsequent detailed engineering forproject implementation, are being funded under Loan 1100-IND. Additionalconsulting services under the proposed loan would include approximately 125man-months of expatriate assistance for a feasibility study on Bendo dam andconstruction supervision of rehabilitation works on 75,000 ha, and 625 man-months of local consultant services for detailed design of tertiary systemson 60,000 ha in the Madiun area to be rehabilitated under the project. Fromthe 60,000 ha, PROSIDA would select the 30,000 ha to be constructed under theproject.

4.07 Consulting services (also by ELC-NK) for preparation of the Madiun-Solo groundwater pilot project feasibility study, as well as continuinggroundwater investigations in the Madiun-Solo study area, are being fundedunder Credit 289-IND and Loan 1100-INI). Additional consulting services underthe proposed loan would include about 225 man-months of expatriate servicesfor preparation of detailed design and construction drawings for the pilotproject; supervision of well drilling, installation of equipment, and civilworks construction; operational guidance /1 for two years following implemen-tation; and feasibility studies for lairge-scale groundwater development(about 30,000 ha) in the Madiun-Solo study area.

4.08 Consulting services for studies and detailed design of drainageworks (100 man-months expatriate, 40 man-months local) were provided underLoan 1268-IND for Ciujung, Cisedane, Pemali-Comal (Java) and North Sadang(South Sulawesi). Under the proposed loan, additional funding would be madeavailable for approximately 24 man-months of expatriate consultant servicesfor supervision of construction of drainage works on 5,700 ha in the CiujungSubproject.

4.09 A total of about 100 man-months of expatriate consulting servicewould be included in the AV training aids program, of which about 50 man-months would be for the extension of the ongoing program for operation and

/1 Covers operation and maintenance of- mechanical equipment, distribution ofwater, determination of consumptive use and monitoring of groundwaterreservoirs.

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maintenance training and the remaining 50 man-months, for extension of theprogram into the construction supervision field.

4.10 About 2,000 man-months of local consultants' services for thedesign of the tertiary irrigation and drainage systems in the Cirebon andRentang subprojects would be financed under the project. Construction of thesystems is being financed under Loan 1100-IND.

4.11 For the text processing and records depository and retrievalsystems, eight man-months of expatriate consulting service would be fundedunder the project for the identification and analysis of the text processingand records management problems, supervision of equipment installation andstartup, and staff training.

4.12 To avoid project implementation delays associated with the engage-ment of consultants, assurances were obtained from the Government thatconsultants acceptable to the Bank would be engaged by December 31, 1977under terms and conditions approved by the Bank.

Water Supply, Demand and Quality

4.13 The Madiun rehabilitation area is supplied principally from theunregulated flow of the Madiun and Solo rivers and their tributaries, localsprings, and groundwater (less than 10%); in addition, large quantities ofdrainage water from higher areas are re-used within the area's complexhydraulic network. Because of the efficient utilization of return flows, thesystem is capable of sustaining a cropping intensity of about 208% (113% ofpaddy and 95% of sugar cane and palawija). No additional supplies would bedeveloped under the project but, compared to the prevailing situation(Annex 4), the rehabilitation and improvement of the existing system isexpected to bring about a more timely delivery of water and a more equitablesharing of available supplies, as well as shortages. These improvementswould result from the reduction of losses at diversion points, in canals, andthrough spillage; greater conveyance capacity; and better water control.Details of water supply and demand are given in Annex 5. Results from testsof water samples indicate that the project water supply is suitable for sus-tained irrigation of rice and secondary crops. The same sources have beenused satisfactorily for generations. Sediment loads at most diversion pointsare high, and the increased desilting efficiency resulting from the projectwould minimize the heretofore serious effects of sediment deposition onsystem operation, conveyance, and distribution.

4.14 Groundwater supplies in the Madiun-Solo area, although not yet fullyevaluated, are much greater than the quantities required for the pilot project.Four distinct aquifer systems have been identified, three of which are undervarying degrees of artesian pressure. Although wells driven into theseacquifers yielded only 40-60 1/sec when tested,/l it is projected that someproduction wells would yield as high as 75 1/sec. Chemical analyses indicate

/1 Maximum yield of 60 1/sec was dictated by the capacity of the test pump.

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quality is adequate to excellent for irrigation purposes. Preliminarygeohydrological findings indicate that groundwater resources are adequate toirrigate some 30,000 ha on a year round basis.

Status of Engineering

4.15 In the Madiun rehabilitation area, the consultants (para. 4.06)are currently carrying out detailed engineering and designs for the first25,000 ha to be rehabilitated under the project. Detailed engineering forthe remainder (50,000 ha) would be completed in phase with the projectedconstruction schedule over the next 4-1/2 years. Preparation of mapsrequired for detailed engineering is well underway. Aerial photography andrectified mosaics for 150,000 ha have been completed. Contracts have beenlet for contour maps (scale 1:5,000, 0.5 m interval) needed for the design oftertiary systems, and these are expected to be finished by mid-1977.

4.16 For the Madiun-Solo groundwater pilot scheme, the consultants (para.4.07) are currently involved in detailed design to initiate construction ofproject wells. Studies are continuing to identify the precise location of thewells in each of the pilot areas. Topographic ground surveys required toproduce the 1:5,000 scale maps (0.5 m contours), which are needed for tertiarysystems layouts are expected to be started in October 1977 and completed byhIay 1978. The consultants are currently preparing specifications for topo-graphic surveys and drilling equipment, including casing, screens, and otherdrilling accessories. The consultants have also started the design of pumphouses and irrigation systems for 11 new tubewells. Two additional drillrigs /1 for project execution and continuing groundwater investigations,specifications for which were prepared earlier and which were procured withGOI funds, are expected to be on site by May 1977.

4.17 Detailed engineering for the Ciujung drainage project would becarried out by consultants to be engaged under Loan 1268-IND. An extensionof the consultants contract to cover construction supervision would befinanced under the proposed project. Aerial photos of 1:6,000 scale arealready available, and 1:5,000 scale photomosaics and topographic maps with0.5 m contour intervals are under preparation and expected to be completed inJune 1977. Supplemented by ground surveys for individual structures, channelprofiles and cross sections in extremely flat areas, the maps would be fullysuitable not only for the proposed works but also for possible future tertiaryirrigation and drainage designs./2

/1 The rig used during groundwater investigations in the study area wouldbe kept on site and employed during project execution.

/2 There would be no tertiary development under the drainage project becausepart of the Ciujung area is covered by the tertiary construction programunder Loan 1268-IND. Areas not covered under that loan would be includedin a future tertiary development project.

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imp1 ementation Schedule

4.18 Implementation schedules for the Madiun rehabilitation and Ciujungdrainage are presented in Charts 16997 and 16998; for Madiun groundwater, inChart 16991. The rehabilitation of the Madiun systems would start with25,000 ha in the 1977 dry season, and the rehabiltation of the remaining50,000 ha would extend through the dry season of 1981. Construction of theMadiun-Solo groundwater pilot schemes would be started during the 1977 dryseason, but on site work would be confined to the preparation of access to,and surface preparation for drilling at the designated well sites. Becauseof the lead time required for these preparatory works, as well as theacquisition of well casings and screens, major construction activity wouldnot be carried out until the 1978 dry season. Some wells would start to gointo final operation during the 1980 dry season. Monitoring of the yieldpotential of acquifers in the pilot areas, based on the performance ofproduction wells, would continue up to September 1982. Since consultants forthe Ciujung drainage have just been engaged, the first year's work willconsist of items requiring a minimum of planning, such as road rehabilitationand river improvement, which would follow existing standard designs and usePROSIDA equipment. Construction is expected to be completed during thefourth dry season, in 1980.

Cost Estimates

4.19 The total project cost is estimated at US$118 million, of whichUS$58.8 million, or about 50%, is the foreign exchange component. PROSIDAextrapolated the civil works quantities for Madiun from a sample area of about20,000 ha (27% of the total rehabilitation area) and for Ciujung, from asample area of about 2,000 ha (35% of the drainage area), and estimated thesesubprojects' costs by applying to the extrapolated quantities the actual unitcosts of similar ongoing works in Java. P2AT estimated the civil works quan-tities for the groundwater pilot project from the entire pilot area, and esti-mated this subproject's cost by applying to the estimated quantities the unitcosts of similar ongoing works in the Madiun-Solo area. Based on experiencewith previous irrigation projects in Indonesia, the following adjustments inthe estimates were introduced during appraisal: (a) the base estimates wereincreased for some civil works items (excavation, fill, canal lining, concrete,masonry, desilting, etc.); (b) all cost estimates were updated to end-1977prices; and (c) physical contingencies of 10% were applied to miscellaneousservices, which can be estimated to about 10% accuracy, and 25% to the reha-bilitation and drainage components whose costs have been based on sample areas,and where experience from the ongoing irrigation rehabilitation projects hasshown that substantial additional work is likely to be required after theexisting structures are dewatered. The cost estimates also include an allow-ance for expected price increases during project execution (26% of base costplus physical contingencies), which are based on the following annual infla-tion rates projected from a large number of civil works contracts in theirrigation sector in Indonesia:

(a) Civil works -- 20% in 1977, 15% in 1978-1979 and 12% in 1980-1982;

(b) Equipment and services -- 7.5% in 1977-1979 and 7% in 1980-1982.

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Costs of consulting services are based on recent contracts signed inIndonesia for similar services with local and foreign firms. The directcosts of foreign consultants (salaries, overseas allowance and companyoverhead and fee) amount to about US$65,500 per man-month. Including indirectcosts (travel, housing, office and miscellaneous expenses), the total costwould be about US$8,000 per man-month.. By comparison, total costs of localconsultants amount to about US$2,000 per man-month.

4.20 Details of the project costs are presented in Annex 7 and aresummarized in the table on the following page.

Financing

4.21 The proposed loan of US$63 million would finance the foreignexchange cost of the project (US$58.8 million) and US$4.2 million of localexpenditures associated with financing expenditures for local consultants tothe same degree (80% of total cost) as foreign consultants. It would coverabout 53% of total project costs and about 7% of local costs. GOI wouldprovide in a timely manner, the remaining Rp 22,800 million (US$55 million)to PROSIDA and P2AT out of annual budget appropriations.

Procurement /1

4.22 Vehicles and equipment for construction and operation (US$5.1million) would be procured under international competitive bidding proceduresin accordance with Bank Group guidelines. A preference equal to 15% of thec.i.f. cost of the imported goods or the customs duty, whichever is lower,would be extended to qualified local manufacturers in the evaluation 'of bids.Small off-the-shelf items costing less, than US$10,000 each and limited to atotal of US$100,000, which are not suitable for international competitivebidding, would be purchased locally through normal Government procurementprocedures which are acceptable to the Bank. There are sufficient suppliesof such goods to ensure adequate competition. All contracts for vehicles andequipment exceeding US$100,000 in value would be submitted to the Bank forreview before bidding and award. Mapping (US$5.5 million) would be carriedout under locally advertised contracts following usual Government procedureswhich are acceptable to the Bank. There are enough mapping contractors inIndonesia to assure adequate competition. Consultant services (US$12.6million) would be procured in accordance with Bank Group guidelines.

/1 All costs in this section of the report include contingencies.

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IRRIGATION COST SUMMARY

ForeignLocal Foreign Total Local Foreign Total Exchange---- Rp Million - --- US$ Million ---- --- %

iAadiun rehabilitation 10,875 9,220 20,095 26.2 22.2 48.4 46

Ciujung drainage 2,245 1,740 3,985 5.4 4.2 9.6 44

Madiun groundwaterpilot project 570 2,135 2,705 1.4 5.1 6.5 79

Technical Assistance 2 195 2,790 4,985 5.3 6.7 12.0 56

Base cost 15,885 15,885 31,770 38.3 38.2 76.5 50

Physical contin-gencies 3,575 3,565 7,140 8.6 8.6 17.2 50

Estimated priceincreases 5,105 4,980 10,085 12.3 12.0 24.3 50

Total projectcost 24,565 24,430 48,995 59.2 58.8 118.0 50

4.23 The construction of drainage structures in Ciujung, small structuresfor tertiary systems in Hadiun and small pumphouses, power station buildingsand tubewells for the groundwater pilot project, which are scattered over awide area and time span, would not be of interest to international contractors.This would also apply to the Madiun rehabilitation where it would be imprac-ticable to group the project works into segments large enough to attract inter-national construction interests. The work is spread over 75,000 ha in 26separate service units with a considerable variety of work among the units.The preparation of detailed designs, construction drawings and specificationscan be most efficiently accomplished by concentrating on the work in eachservice unit and combining several units in each construction contract.Groupings large enough in capital cost still would be unattractive to inter-national contractors because they would consist of a great number of rela-tively small and disparate construction activities scattered over a widearea. These works would therefore be carried out either by force account(US$14.2 million) or locally advertised contracts (US$80.6 million) followingusual Government procedures. Local contracting procedures were reviewedunder the seven Bank Group projects and are acceptable with the followingchanges agreed upon by the Government: (a) except for tertiary canals andstructures, the works would be divided into a number of suitable contracts(minimum size US$125,000) that would enable large local contractors and jointventures of small local firms to bid within the categories or classes forwhich Government regulations require them to be prequalified; (b) to minimize

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late construction starts early in the dry season, invitations to bid for suchcontracts would be issued as bid documents are completed, and bids would bereceived and processed without waiting for the project implementation budget(DIP) to be signed, but contract award and signing would be done after theDIP is approved; and (c) price escalat:ion clauses, which are not normallyprovided in local civil works contracts, would be included in contractsextending beyond one year. For contracts estimated to cost US$500,000 andabove, documents would be submitted to the Bank for review before tenderingand award.

Disbursements

4.24 Disbursements would be made at the rate of 100% against the foreignexchange cost of training and of directly imported vehicles and equipment,95% of the ex-factory cost of locally manufactured equipment, 65% for locallyprocured imported equipment, excluding vehicles, and 40% of total expendi-tures for locally procured vehicles. Disbursements for both foreign andlocal consultants would be at 100% of total expenditures to encourage theuse of local consultants and to enable the executing agencies to engageconsultants expeditiously, since prior budgetary allocations would not beneeded. Disbursements for civil works, including tertiary systems, wouldbe at the rate of 60% of total costs. Disbursements for tertiaries would,however, be made only if the withdrawal application is accompanied by acertificate from the site engineer stating that the quaternary canals anddrains in the tertiary block (four tertiary systems of about 150 ha each)had also been constructed. Disbursemen,ts for force account works would bemade against certificates of expenditure, the documentation for which wouldnot be submitted to the Bank for review but would be retained by the borrowerand made available for inspection by the Bank's supervision missions. Dis-bursements for mapping would be at the rate of 80% of total expenditures.In consultation with the Bank, savings under the project would be used tofinance similar additional works in the project area. The estimated scheduleof expenditures on the project and the disbursement schedule are presented inAnnex 8. Although disbursements would be about 98% complete by March 31,1982, the loan would be kept open until March 31, 1983 to enable disburse-ments to be made against consultants services for monitoring the yieldpotential of acquifers and completing feasibility studies for large scalegroundwater development under the Madiun groundwater pilot project.

Accounts and Audits

4.25 The accounts of PROSIDA and P2AT are audited annually by independentauditors acceptable to the Bank. Assurances were obtained from the Governmentthat: (a) the above agencies would maintain separate accounts for theproject; (b) auditors acceptable to the Bank would be engaged to audit theseaccounts; and (c) audited financial statements, together with the auditor'scomments and opinion on the certificates of expenditure for force accountworks, would be submitted to the Bank within six months of the close of eachfiscal year.

Environmental Effects

4.26 Three elements of the proposed project would have physical environ-mental impacts: Madiun irrigation system rehabilitation, Madiun groundwater

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pilot project, and Ciujung drainage. The areas embraced by all three elementshave been under cultivation/irrigation for many generations, thus the basicland use would not change appreciably in character, although the quality ofagricultural activity would improve with more intensive and viable usagefollowing implementation of the project.

4.27 For the Madiun rehabilitation and groundwater pilot project, therewould be some temporary disruption of the flora and fauna cycles in theimmediate vicinity of the construction activity. Because of the tropicalcharacter of the area, however, disturbed areas would be restored to theirnatural condition within a year without any special effort being made. Thequality of life in the project area would be significantly improved for thehuman population of the area with the project as opposed to a continuingdegradation in quality of life without the project.

4.28 In Ciujung, some areas that are now swampy, marshy or inundatedwith water for varying periods of time due to excessive flood or drainageflows would be restored to a quality more adaptable to man's use for foodproduction and construction of homesites and roads. The project works wouldlessen the dislocation of families or entire villages due to flooding, stabil-ize agricultural production, render transportation less subject to inter-ruption, and improve the quantity and quality of domestic water supplies.Given adequate maintenance of facilities incorporated in the project, theabovementioned changes in land and waterway use and character would bepermanent, but not irreversible.

4.29 There are no known unique environmental factors in any of the areas.Physical damage to the environment due to the construction activity wouldbe minimal and short lived. The impact upon the human environment would bepositive in every instance. There is no present occurrence of schistosomiasisin the project areas, and mosquito breeding areas that currently exist wouldbe reduced as a result of the project works.

5. ORGANIZATION AND MANAGEMENT

Organization

5.01 PROSIDA, who completed rehabilitation works under Credit 127-IND andis currently in charge of works under Credits 220, 289-IND, and Loans 1100and 1268-IND, would implement the tertiary construction and rehabilitationworks in Madiun, flood control and drainage works and inspection roads inCiujung and the technical assistance component under the proposed project.It would carry out day-to-day supervision of tertiary construction andrehabilitation works in Madiun through its Madiun subproject office, whichwas strengthened with the assignment of experienced personnel drawn fromPROSIDA subprojects that are nearing completion. Direction of drainage worksat field level in Ciujung would be carried out through its subproject officein Ciujung, which was strengthened under Credit 220-IND. P2AT, who supervisedthe investigation of the groundwater potential of the Madiun area underCredit 289-IND, would implement the establishment of the Madiun groundwaterpilot project. Direction at field level would be done through its Madiun

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subproject office, which was established and gradually strengthened underCredit 289-IND and Loan 1100-IND. To ensure good coordination of the workswithin the overlapping service areas of the groundwater pilot project andMadiun irrigation system, the DGWRD has appointed a common PROSIDA and P2ATsubproject manager and deputy subproject manager in Madiun. Chart 16017shows the DGWRD general organization; Chart 16008, the PROSIDA managementstructure; Chart 8964, the typical PROSIDA subproject organization; and Chart17135, the P2AT subproject organization.

5.02 With its long experience in executing Bank-assisted projects,PROSIDA should have no difficulty in implementing its part of the work withthe assistance of consultants. Similarly, P2AT is expected to have no diffi-culty in establishing the groundwater pilot project with the assistance ofconsultants since this would be an extension of the groundwater investigationsit started under Credit 289-IND. Assurances were obtained from the Govern-ment that: (a) the PROSIDA and P2AT subproject offices involved in projectimplementation would be adequately staffed; and (b) GOI would consult withthe Bank before appointing a replacement for the General Manager of PROSIDAor for the General Manager of P2AT.

Agricultural Support Services

5.03 The Ministry of Agriculture (MOA), Bank Rakyat Indonesia (BRI), andDirectorate General of Cooperatives (DGC) would supply supporting servicesin the project areas consisting of research and extension; credit; HYV seeds,fertilizer, and pesticides; and storage and processing facilities. Theseservices would need to be improved to maximize benefits from the project.Since many problems in agricultural supporting services, however, extendacross the entire agricultural sector, and must be solved on a sector-widebasis, this project is unsuitable to provide solutions for them. Neverthe-less, some existing Bank-assisted projects, and ongoing GOI programs, wouldrectify some of the problems, and help to improve others. The Bank also hasbeen discussing with GOI the introduction of several other programs toimprove agricultural supporting services, such as building village fertilizerstores, upgrading the management and operation of farmer cooperatives, and asecond seeds project. The recently introduced National Food Crops Extensionproject (Loan 1268-IND) would intensify and expand extension services byreorganizing and increasing the number of field extension workers, and byrehabilitating and/or constructing rural extension centers for about everyten village units (10,000-12,000 farmers). The Agency for Research andDevelopment (ARD), established under Loan 1179-IND, would conduct paddy andpalawija crop research at the National Research Centers for Paddy and Secon-dary Crops in Sukamandi, and at Tegalgondo Seed Improvement Center, a fieldstation located near the Madiun project area. Domestic fertilizer productionwould continue to grow with assistance from the Bank Group (Credit 193-INDand Loan 1089-IND), and the Fertilizer Distribution Project (Loan 1139-IND)would aid fertilizer distribution from the national to the district level.

5.04 At full development, demand for fertilizer would rise from itscurrent level of 18,000 tons to 23,000 tons/year at Madiun, and from 600 tons

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to 1,800 tons/year at Ciujung. The existing fertilizer supply channelscould handle the increased demand, and the repairing and upgrading of sub-district roads under the INPRES program, would help improve the distributionefficiency at the village level. The demand for certified rice seed would be800 tons at Madiun and 80 tons at Ciujung at full development. To meet thesetargets, the quality of local seed growers' production would be upgradedunder the Provincial agriculture services ongoing work. After project com-pletion, production credit requirements would also rise. At Madiun theannual project area short-term production credit needs would increase fromabout Rp 1,900 million to Rp 3,000 million, and at Ciujung from Rp 90 millionto Rp 180 million. While BRI would be able to supply these funds, it wouldhave to increase its field staff to avoid delays in processing and issuingthe credits. BRI has been gradually improving its service to farmers and itis expected to continue doing this, and provide the required field staff. Toensure that farmers' needs for advice, credit and agricultural inputs wouldbe provided for in the project areas, assurances were obtained that GOIwould take the necessary steps to ensure that adequate credit and agriculturalinputs (including fertilizer, agricultural chemicals and certified seed) aremade available at the village level in all project areas.

5.05 The Provincial Irrigation Services and the Ministry of Home Affairswould form farmer groups (water-user associations) for extension, productionplanning, water management, and tertiary and quaternary unit construction ineach tertiary unit. As they would be vital in synchronizing crop calendarsand water supplies, assurances were obtained from GOI that a water-userassociation would be formed for each tertiary unit in the project areas toparticipate in the unit's construction and to take over its operation andmaintenance after project completion.

Monitoring Benefits

5.06 Project benefits accruing from irrigation and drainage develop-ments, together with other social aspects, would be monitored in accordancewith the monitoring system set up under Loan 1100-IND (Irrigation Project VIappraisal report). Funds to carry out this work would be provided under asubsequent Bank-assisted project.

Operation and Maintenance

5.07 PROSIDA would be responsible for the operation and maintenance(O&M) of tertiary systems and primary and secondary irrigation works inMadiun during construction. For one year after construction, PROSIDA wouldcontinue to operate and maintain the works to ensure that all defects arecorrected and needed repairs are made before the systems are formally turnedover to the East Java Provincial Irrigation Service. Thereafter, the Provin-cial Irrigation Service would assume responsibility for operating and main-taining the primary and secondary systems. The responsibility for operatingand maintaining tertiary systems of about 150 ha each would shift to tertiarywater-user associations in these systems, which would collect 40-50 kg ofpaddy per ha from all beneficiaries to meet the full O&I costs. This iscurrently being done on a number of pilot tertiary systems and, in nearly allcases, the systems are being adequately maintained.

5.08 PROSIDA would be responsible for O&M of the Ciujung flood controland drainage works and inspection roads during, and for one year after

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construction, to ensure that all works are properly operating before theyare formally turned over to the West: Java Provincial Irrigation Service.The Provincial Irrigation Service would, thereafter, assume responsibilityfor operating and maintaining the internal drains and inspection roads alongembankments of these drains; the DGW4RD's Directorate of Rivers, the maindrainage channels; and the Kabupaten (District) the district and villageroads in the project area.

5.09 P2AT would operate and maiLntain all works, including tubewells,pumps and diesel primemovers, during, and for the three-year transitionperiod following the establishment of the Madiun-Solo groundwater pilotproject, to ensure that all elements of the project are functioning properlybefore they are formally turned over to the East Java Provincial IrrigationService. GOI would wholly or partly subsidize the pilot project's operationduring the transition period, depencling upon the project beneficiaries'capability to meet the O&M costs.

5.10 Within the first year after project completion, the local govern-ment and the Provincial Irrigation Service would form a water-user associa-tion for each well. During this period, P2AT would operate and maintain thepumps and diesel engines and train the Provincial Irrigation Service'soperating personnel. It would also assess the organizational needs andestablish the operational and maintenance standards, the minimum farmoperating unit, suitable cropping patterns, the optimum mix between surfacewater and groundwater supplies and the irrigation fees required to meet fullO&M and replacement costs of the operating units. No O&M charges would belevied at this time, but at the start of the second year, and continuing tothe third year, the Provincial Irrigation Service, through the water-userassociations, would begin collecting irriation fees based on the beneficiariescapacity to pay to cover part of P2AT's operating expenses. At the end ofthe third year, P2AT would turn over to the Provincial Irrigation Service allthe operating and service facilities, but it would continue to providetechnical guidance and effect all major repairs. To ensure satisfactory O&Mservices and reasonable cost recovery, assurances were obtained from GOIthat: (a) a water-user association would be formed for each well not laterthan one year after the completion of each pilot scheme; (b) one year afterthe completion of each scheme, the water-user associations would establishand collect from all beneficiaries fees in amounts that would be graduallyincreased during the first five years of well opertion to ensure sound O&Mpractices; (c) not later than June 30, 1981, GOI would furnish to the Bank areport on the groundwater pilot project's implementation, including an assess-ment of the beneficiaries' capability to contribute to the project's replace-ment cost and its proposals for collecting such contribution from the bene-ficiaries; and (d) based on this assessment, GOI would cause the water-userassociations to establish and collect from all beneficiaries such charges asshall be agreed with the Bank.

5.11 Although there have been some improvements in O&M services in thecompleted and ongoing irrigation projects, there is still a need for moretrained staff, as well as an increase in O&M budgetary allocations. Thisfiscal year's per hectare allocations for rehabilitated and unrehabilitatedsystems, which were established jointly by GOI and the Bank are about 30%

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higher than last year's levels. The increase in O&M funding is reflected inthe ongoing projects maintenance programs that were reviewed by the Bank'ssupervision missions in August and November, 1976. Despite the commitment ofsubstantially higher levels of O&M funds, however, the major constraint tothe improvement of O&M services is the untimeliness of fund releases for thispurpose. Last year, significant fund releases to most subprojects were notmade until the second semester of the fiscal year (rainy season), when littlemaintenance other than urgent repairs could be done. The subprojects obtainedpermission to use the carry-over funds during the first quarter of the currentfiscal year to meet operating expenses and carry out needed repairs. Due todelays in the signing of the DGWRD budget, the subprojects did not start oper-ating with funds released from the current budget until August 1976. Becausetotal releases of FY76/77 funds as of September 30, 1976 amounted to only5%-8% of the subprojects' budgets, however, no appreciable system-wide main-tenance could be done although most systems had been out of service and readyfor repairs for some time. To enable the subprojects to operate efficientlyand to carry out timely and effective system-wide maintenance in the dryseason, GOI has agreed to allocate to the PROSIDA, Jatiluhur and SEDEKUsystems in FY77/78, O&M funds totaling about Rp 3,350 million (Annex 10,Table 2) for about 783,000 ha of rehabilitated systems (Rp 2,900 million);90,000 ha to be rehabilitated in FY77/78 (Rp 120 million); and about 240,000ha to be rehabilitated in the projects' remaining construction period (Rp 330million). Although the above O&M funds are only 10% higher than FY76/77levels, a substantial improvement in O&M services would be realized if theyare released in a timely manner and additional qualified O&M personnel areemployed to ensure that the available funds are effectively utilized.Therefore, assurances were obtained from the Government that: (a) adequateO&M funds, adjusted to keep pace with inflation and actual needs, would beallocated in future years for all Bank-assisted irrigation projects; (b) GOIwould take the necessary steps to ensure that at least half of the budgetedO&M funds would be released to the subprojects by August 15 of each year andthe balance, in equal quarterly installments thereafter, until the totalamounts are fully released; (c) to upgrade the standard of O&M services andto effectively utilize the available funds, GOI would progressively increasethe number of qualified O&M personnel in the Bank-assisted projects until theadditional numbers to be established by GOI in consultation with the Bank areemployed; and (d) GOI would inform the Bank by December 31 of each year ofthe proposed number of O&M personnel and per hectare O&M budget for eachsubproject; and (e) by June 1 of each following year, it would submit theapproved O&M budget and by October 1, the staffing provisions.

Cost and Rent Recovery

5.12 Irrigators in Indonesia pay a land tax (IPEDA) and, depending onthe intensity of on-farm irrigation development, water charges for theoperation and maintenance of the irrigation system below the secondaryturn-out. IPEDA is collected by village heads, and turned over to local andprovincial administrations for use in public services. However, it can beconsidered a direct project tax which contributes towards the operation andmaintenance, plus capital repayments, of the main irrigation system. SinceIPEDA is assessed as a percentage of the value of production, the amounts

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collected would increase as crop yields rise in response to the project. AGOI interministerial committee has recommended that part of this increase inIPEDA should be used to cover annual operating and maintenance costs of theirrigation works that were rehabilitated or constructed. Additionally, as aresult of a recent GOI decision to tie disbursements under its local infra-structure development program (INPRES) to IPEDA collection performance, IPEDAcollection rates have improved markedly. Present and expected future levelsof IPEDA and water charges rates in the two project areas are as follows (in1977 prices):

Madiun CiujungWith With

Present Project /a Increment Present Project Increment--------- (Rp '000) ---------- ------- (Rp '000) ---------

IPEDA 7 12 5 4 9 5

Water charges - 3.9 3.9 - 1.5 1.5

Total 7 15.9 8.9 4 10.5 6.5

Cost recovery (%) 28 9

Rent recovery (%) 13-100 4-34

/a With project refers to full agricultural development in 1987. In futurewithout project IPEDA and water charges are assumed to remain at thepresent levels (1977 prices).

5.13 Water-user associations at t:he tertiary canal level in Indonesiahave traditionally contributed a portion of their crop to the water master(ulu-ulu), or he has received the use of an area of village rice land, inpayment for his services. As tertiary, and quaternary canal and draindevelopment has occurred under Bank-assisted irrigation projects, theirrigators have increased their contributions to cover all operation andmaintenance costs for the tertiary/qua.ternary unit. The amount of thiswater charge varies according to the degree of development of the tertiaryunit.

5.14 Assurances were obtained that GOI, in -accordance with its lawsand regulations, would collect the adjusted IPEDA based on the increasedproductivity of all irrigated land rehabilitated and constructed under theproject; amounts to be collected would. be sufficient to ensure sound O&Mpractices and to recover a reasonable portion of the capital costs during theprojects useful life, taking into account farmers' incentives and capabilityto pay; and it would submit to the Bank for review every two years the IPEDArates collected for different land classes.

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5.15 In determining the extent of cost recovery and the relation ofproject charges to benefits under the project, cost and rent recovery indiceshave been calculated (Annex 15). The cost recovery indices are 28% for Madiunrehabilitation, and 9% for Ciujung drainage. Rent recovery indices were cal-culated for owner-operators and sharecroppers on 0.2, 0.5 and 1.3 ha farms atMadiun; and on 0.3 and 0.8 ha farms at Ciujung. They indicate that at Madiunowner-operators would pay from 74% to 100% of their project rent in incremen-tal project charges, and sharecoppers from 13% to 31%; wile at Ciujung owner-operators would pay from 31% to 34%, and sharecroppers from 4% to 6%.

5.16 The project charges in the Madiun area are considered satisfactory.At Ciujung, even though owner-operators would have rent recovery indicesless than 50%, no increases in charges are proposed as some 90% of the proj-ect area farm families at present have per capita incomes below the absolutepoverty level of US$95 (1975 prices). At full project development, some70% of all farm families' per capita incomes would still be below thisfigure. Besides paying a substantial total land tax (Rp 9,000 (US$22)/ha),irrigators would pay at least 10% of their gross value of production invillage taxes (Annex 15, Table 1). As well, they would contribute to thesocial life and welfare of the village through religious taxes and compulsoryfeasts. Since even at full project development practically all sharecropperfamilies would have per capita incomes below the absolute poverty level, thelow rent recovery indices for this group are appropriate.

6. PRODUCTION, MARKET PROSPECTS, PRICES AND FARM INCOME

Production

6.01 The project would increase agricultural production through higheryields in all project areas, and at Ciujung, a more intensive croppingpattern. The net irrigated areas, however, would remain unchanged in bothproject areas. Reduced flooding in Ciujung would shorten the wet-seasoncropping period for paddy and thus allow increased planting of dry-seasonpaddy. The annual cropping intensity would increase from 115% to 140%. AtMadiun, however, it would remain at around 208%. Additionally at Madiun, ascane areas already have first priority on available water supplies and thesugar industry is implementing other developments outside this project, theproject would not increase sugarcane production. As a result of better watercontrol and distribution, a strengthened and improved extension service, andfarmers using better quality rice seed, at full development paddy yieldswould average 4.2 ton/ha /1 in the wet season and 3.8 ton/ha in the dry seasonat Madiun; and 3.6 ton/ha and 3.8 ton/ha at Ciujung. Early soybeans wouldaverage 0.8 ton/ha and late soybeans 0.63 ton/ha at Madiun. Farmers wouldachieve these yields five years after adequate and reliable irrigation isestablished. Additionally, Madiun dry-season yields allow for water short-ages, more severe on the palawija crops than the paddy area, and Ciujung

/1 Composite yield: 40% (30,000 ha) of area equipped with tertiary andquaternary facilities yielding 4.5 ton/ha; 60% (45,000 ha) of areawithout tertiary and quaternary facilities yielding 4.0 ton/ha.

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yields assume minimum tertiary, and no quaternary, canal development.However, all average crop yields could be higher, providing GOI couldsufficiently expand the necessary agricultural supporting services, inparticular the availability of short-term production credit, adequate andtimely distribution of fertilizer at t'he village level, crop protectionservices, grain drying floors, and an adequate network of properly maintainedrural roads. At full development, about six years after completion ofproject works, annual paddy production would reach 335,000 tons compared to254,000 tons at present in Madiun; and 29,000 compared to 15,000 tons atCiujung. Annual soybean production would reach 46,000 tons compared to34,000 tons at present in Madiun. Annex 2 gives details of present andfuture crop yields and production.

Market Prospects

6.02 Self-sufficiency in rice is a major Government goal. Indonesianrice production has been unable to satisfy demand for many decades. Since1968, imports have ranged between 0.5 and 1.3 million tons. According toGovernment estimates of future demands, 0.6 million tons of imported ricewould be needed in 1978, and substantiial imports would continue to be requiredin subsequent years. Thus, no difficu'lties are foreseen in marketing theadditional paddy from the project areas. Much of the incremental productionfrom M4adiun and Ciujung would be consumed at the farm level, and the balancewould be marketed in the Surabaya and Jakarta areas respectively. Palawijacrop production at Madiun would be marketed locally or in the Surabaya area.

Prices

6.03 For both the farm budget and economic analysis, farm inputs andoutputs have been valued in end-1977 prices. For rice, soybean, sugar andfertilizers, these prices were derived from the Bank's Commodity Division'sforecasts for world market prices, and adjusted for transportation costs.Only an estimated 10% of rice production from the project areas would bemilled into high-grade rice (5% brokens); 60% would be medium-grade (25-35%brokens); and 30% would be low grade (42% brokens). Using this quality mixand the world market price forecasts, the equivalent economic farm-gate pricefor paddy would rise from US$144/ton in 1977 to US$188/ton in 1985 (in termsof end-1977 constant dollars) in the Madiun project area. Historically, theGovernment has followed a policy of keeping consumer food prices low byselling imported rice below its cost and keeping domestic floor prices low.To mitigate the effect of this policy on farm income, GOI has simultaneouslysubsidized fertilizer and pesticide. :[n the last two years, however, GOI hassubstantially raised domestic paddy prices to encourage rice production. Thischange in policy, combined with the fall of world prices from the recordlevels of 1973-74, has brought farm-gate prices fairly close to world levels.Thus, the floor price for paddy is now Rp 70/kg, as compared with an imputedeconomic price of Rp 75/kg. Although with some fluctuations, GOI has simi-larly gradually reduced the subsidies for fertilizers. GOI is expected tocontinue its efforts to align domestic and world market prices, and conse-quently at full development, economic and financial prices for inputs and

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outputs are assumed to coincide at the Bank's forecasted world market prices.Annex 11 shows the calculation of commodity and fertilizer prices in moredetail.

Farm Income

6.04 For farm income analysis, three farm models (0.2 ha, 0.5 ha and1.3 ha) were examined for the Madiun rehabilitation area, and two (0.3 ha and0.8 ha) for the Ciujung drainage area. Land use and cropping patterns forthe present condition broadly reflect averages for cultivated lands in theproject areas. Small farms (less than 1.0 ha) have a higher cropping intensitythan large farms. The future condition with the project assumes the annualcropping intensity would increase at Ciujung, but not at Madiun where thefuture cropping pattern and intensity would remain as now. Soybeans representall other palawija crops in the Madiun crop budgets. As well, sugarcane pro-duction has been excluded from the Madiun crop budgets, and farms, which coverabout 28,000 ha and are leased to the sugar factories once every three years,would produce average annual farm incomes some 20% less than the incomesshown here. Farm incomes are summarized below and detailed in Annex 12.

6.05 As shown in the table, present annual net crop income for share-croppers and owner-operators varies from Rp 25,000 to Rp 245,000 at Madiun,and from Rp 15,000 to Rp 75,000 at Ciujung. Similarly, at full developmentnet crop income would vary from Rp 35,000 to Rp 400,000 at Madiun and fromRp 40,000 to Rp 215,000 at Ciujung. This represents a 4-6% annual cropincome increase at Madiun, and a 12% increase at Ciujung. Even allowing forthe additional costs of family farm labor and management (Annex 16), thisindicates farmers would have sufficient financial incentive to achieve theprojected yields and cropping intensities.

6.06 At Madiun with an estimated six persons per family and one familyper farm, present per capita farm income (US$35-110) would increase by14-55% at full project development (US$40-170) in 1986; and at Ciujungby 33-100% over the same period (from US$30-50 to US$40-100). However, evenat full development these estimated per capita farm incomes would be lessthan the 1975 Indonesian per capita GNP of US$210.

6.07 An estimated 85-90% of the project area's farm families presentlyhave per capita incomes at or below the estimated absolute poverty level ofUS$95 (1975 prices). At full agricultural development, the project wouldincrease this group's incomes on average by 40%, raising from one fifth toone quarter of the farmers in the group above the absolute poverty level.

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Farm Crop Income Off-Farm Income Farm Income /aSize Tenure Present Future /b Pr,esent Future Present Future Present Future(ha) ---- - (Rp '000) ----------- -- (Rp '000)-- ---- (US$)

Madiun Rehabilitation

0.2 Owner-operator 45 70 60 60 105 130 250 310Sharecropper 25 35 60 60 85 95 200 230

0.5 Owner-operator 105 175 40 35 145 210 350 510Sharecropper 55 90 40 35 95 125 230 300

1.3 Owner-operator 245 400 25 20 270 420 650 1,010Sharecropper 125 210 25 20 150 230 360 550

Ciujung Drainage

0.3 Owner-operator 30 80 55 55 85 135 200 330Sharecropper 15 40 55 55 70 95 170 230

0.8 Owner-operator 75 215 45 40 120 250 290 600Sharecropper 40 110 45 40 85 150 200 360

/a Rounded to nearest Rp 5,000 and US$10.

/b Future represents at full project development in 1986.

6.08 No reliable income data are available for the landless laborers wholive in the project areas. However, assuming two full-time workers perfamily; an average wage rate of Rp 150/day; and 200 work days/year/worker,the annual income of a landless family can be no more than Rp 60,000 orUS$145. Since employment opportunities are limited, many families probablyearn less. Benefits to accrue to landless laborers under the project arediscussed in para. 7.01.

7. BENEFITS, JUSTIFICATION AND RISKS

7.01 By providing improved water control, distribution and drainage,the proposed project would increase crop yields and production on a total of80,700 ha at lIadiun and Ciujung. It would also increase production on2,800 ha served by the pilot groundwater development by providing a newsource of irrigation water, and continue investigation of the groundwaterresource. The project would directly benefit some 167,000 farm families or1.0 million people; and through the provision of additional employment oppor-tunities, indirectly benefit some 49,000 landless laborers' families, or294,000 people. Through increased water control, crop production, and annualcropping intensity at Ciujung, it would create a demand for an additional

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4.9 million man-days of farm labor per year, or about 20,500 man-years. Theimproved drainage at Ciujung would reduce flood damage to fishponds. Althoughnot included in the economic benefits, it would also reduce flood damage topublic and private structures such as roads, bridges and houses, improvedomestic water supplies and reduce mosquito breeding areas.

7.02 The economic rates of return would be 21% for Madiun rehabilitationand 18% for Ciujung drainage, in both cases using a thirty-year evaluationperiod; full project benefits being attained six years after completion ofconstruction; farm-gate prices for rice, soybean, sugarcane and fertilizersbased on the Bank's commodity price forecasts for 1985 expressed in December1977 constant prices; a shadow foreign exchange rate; and a seasonally vari-able shadow wage rate for unskilled labor (Annex 14).

7.03 The rates of return for both areas showed little sensitivity tovariations in the assumptions made concerning the timing of agriculturalbenefits, and at Madiun, to variations in the cost estimate. They showedmost sensitivity to a reduction in the level of benefits, but in none of thecases tested would the rate of return fall below 14%. On the other hand, ifproject benefits turn out to be 25% higher than forecast because of highercommodity prices, the rate of return would be 25% for Madiun and 22% forCiujung.

7.04 Economic rates of return were also calculated for the pilot ground-water development at Madiun-Solo. Using similar assumptions to those listedin para. 7.02, it would be 13%. The use of groundwater supplies in conjunc-tion with existing surface water supplies would be carefully studied underthe project to obtain the maximum returns from each water source.

7.05 At full agricultural development, the project would result in riceimport savings of US$37 million annually at the projected world market pricec.i.f. Surabaya and Jakarta (Annex 11). After deducting the incremental costof imported chemicals, fuel and other farm inputs, annual net foreign exchangesavings would amount to about US$26 million.

7.06 No management or organizational problems are expected in the imple-mentation of the project. Rapid inflation over the last several years ledto sizable cost overruns on projects initiated in the early 1970s. Inflationis now more nearly under control, but provisions for price increases aregreater for this project and other projects recently financed by the Bankthan in earlier projects. Physical contingencies allowed are 25% for rehabil-itation and drainage works, and 10% for miscellaneous services. Consideringthe detailed investigations made for the project, these would be adequate.Substantially higher benefits could be realized from investments in projectworks if the required supporting agricultural services could be expanded soas to provide adequate coverage to all areas (para. 6.01).

8. AGREEMENTS REACHED AND RECOMMENDATION

8.01 During negotiations, agreement with the Government was reachedon the following points:

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(a) consultants acceptable to the Bank wouLd be engaged by December 31,1977 on terms and conditions approved by the Bank (para. 4.12);

(b) except for tertiary canals and structures, the works wouldbe divided into a number of suitable contracts (minimum sizeUS$125,000) that would enable large local contractors and jointventures of smaller local firms to bid within the categories orclasses for which Government regulations require them to be pre-qualified; to minimize late construction starts early in the dryseason, invitations to bid for such contracts would be issued asbid documents are completed, and bids would be received and pro-cessed without waiting for the project implementation budget (DIP)to be signed, but contracts would be awarded only after the DIP isapproved; and price escalation clauses, would be included in localcivil works contracts extending beyond one year (para. 4.23);

(c) PROSIDA and P2AT would maintain separate accounts for the project;auditors acceptable to the Bank would be engaged to audit theseaccounts; and audited financial statements, together with theauditors' comments and opinion on the certificates of expenditurefor force account works, would be submitted to the Bank within sixmonths of the close of each fiscal year (para. 4.25);

(d) the PROSIDA and P2AT subproject offices involved in project imple-mentation would be adequately staffed, and GOI would consult withthe Bank before appointing a replacement for the General Manager ofPROSIDA or the General Manager of P2AT (para. 5.02);

(e) GOI would take the necessary steps to ensure that adequate creditand agricultural inputs (including fertilizer, agricultural chemicalsand certified seed) are made available at the village level in allproject areas (para. 5.04);

(f) a water-user association would be formed for each tertiary unit inthe project areas to participate in the unit's construction and totake over its operation and m,aintenance after project completion(para. 5.05);

(g) a water-user association would be formed for each well not laterthan one year after the completion of each pilot scheme; one yearafter the completion of each scheme, the water-user associationswould establish and collect from all beneficiaries fees in amountsthat would be gradually increased during the first five years ofwell operation to ensure sound O&M practices; not later than June 30,1981, GOI would furnish to the Bank a report on the groundwaterpilot project's implementation, including an assessment of thebeneficiaries capability to contribute to the project's replacementcost and its proposals for collecting such contribution from thebeneficiaries; and based on this assessment, GOI would cause thewater-user associations to establish and collect from all bene-ficiaries such charges as shall be agreed upon with the Bank.

(h) adequate O&M funds, adjusted to keep pace with inflation and annualneeds, would be allocated to all Bank-assisted irrigation systems

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in future years; GOI would take the necessary steps to ensure thatat least half of the budgeted O&M funds would be released to thesubprojects by August 15 of each year and the balance, in equalquarterly installments thereafter, until the total amounts arefully released; to upgrade the standard of O&M services and toeffectively utilize the available funds, GOI would progressivelyincrease the number of qualified O&M personnel in the Bank-assistedprojects until the additional numbers to be established by GOI inconsultation with the Bank are employed; and GOI would informthe Bank by December 31 of each year of the proposed number of O&Mpersonnel and per hectare O&M budget for each subproject; and byJune 1 of each following year, it would submit the approvedO&M budget and by October 1, the staffing provisions (para. 5.11);and

(i) GOI, in accordance with its laws and regulations, would collect theadjusted IPEDA based on the increased productivity of all irrigatedland rehabilitated and constructed under the project; the amountsto be collected would be sufficient to ensure sound O&M practicesand to recover a reasonable portion of the capital costs during theproject's useful life, taking into account farmers' incentives andcapability to pay; and it would submit to the Bank for reviewevery two years the IPEDA rates collected for different landclasses (para. 5.14)

8.02 The project would be suitable for a Bank loan of US$63 million, witha 20-year maturity including a grace period of 4-1/2 years. The Borrowerwould be the Government of Indonesia.

ANNEX 1Page 1

INDONESIA

IRRIGATION VIII

Climate

Madiun Area

1. The Madiun project area is located near the western edge of EastJava, with a minor portion in Central Java. It embraces parts of the Kabupa-tens (Districts) of Ngawi, M4adiun, Magetan and Panogoro in East Java, andSragen in Central Java.

2. The project area of about 2,500 sq km is drained by the BengawanSolo and its principal tributary, Kali Madiun, which drain a total of 9,800sq km. The Lawu volcano, which rises to a height of 3,200 m, and two lesservolcano groups, the Willis-Dorati on the east and the Menapi-Menbabu on thewest, are prominent features that influence the local micro-climate. Projectlands vary in elevation from about 50 to 150 meters, averaging about 100meters.

3. Annual rainfall, which averages 2,000 mm, is influenced by thetropical monsoons. The rainy or wet season normally extends from Novemberthrough May (northwest monsoon), while the dry season predominates during theJune-October period (southeast monsoon). Annual precigitation by months isgiven in Table 1. Annual mean temperature is about 29 C, with a monthlyvariation of only 3-40C from that mean. Humidity is generally high comparedto the rest of Java, even in the dry season.

Ciujung Area

4. This area is typical of the relatively flat, low-lying coastalplains on the northwestern coast of Java. It has the historic northwestmonsoon season from November through May, followed by an extremely dry periodfrom June through October. Mean annual temperature is about 27 0 C, withmonthly means varying only 2-3 C from that mean. Day lengths are of approxi-mately equal duration throughout the year, comprising about 13 hours ofdaylight or near-daylight. More than 75% of the annual precipitation occursduring the November-May period, and there are no significant orographicfeatures in the area that affect the micro-climate other than proximity tothe sea. Average monthly precipitation is presented in Table 1.

INDONESIA

IRRIGATION VIII

Climatological Data

Area

TotalStation Years Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (Average)

Madiun AreaMean rainfall, mmaUpper Basin } 1941-45 305 293 294 201 144 45 43 20 25 81 135 296 1,916Lower Basin and 303 308 315 218 151 57 45 25 26 99 194 265 2,006Entire Basin } 1951-75 305 299 301 207 146 56 43 21 25 86 187 267 1,943

Temperature, OC 1964-75Mean 26.9 27.0 27.2 27.9 28.1 28.1 27.7 28.2 29.0 29.5 28.7 27.5 (28.0)Maximum 30.6 30.7 31.3 31.8 32.0 32.1 32.0 32.9 33.9 34.3 33a2 31.5 (32.2)Minimum 22.6 22.6 22.5 22.4 22.3 21.2 21.2 21.4 22.4 23.1 23.3 22.6 (22.3)

Relative humidity, % 1964-7514ean 77 79 79 75 72 66 61 57 55 57 67 74 (68)Maximum 64 55 52 46 48 38 37 34 43 46 42 48 (46)Minimum 99 99 98 99 98 95 95 97 97 99 98 98 (98)

Cloud cover 1967-76 7/8 7/8 6/8 6/8 6/8 4/8 3/8 3/8 4/8 5/8 7/8 6/8 (5/8)Wind velocity, knot 1964-75 8 9 7 7 7 10 12 12 14 12 9 8 (10)Sunshine hours, % 1971-75 63.2 60.2 70.0 83.5 80.4 89.2 91.8 96.7 94.1 91.0 83.1 72.6 (81.3)Evaporation, mm/day 1953-75 5.8 4.1 4.2 4.5 4.7 5.1 5.1 6.0 6.4 6.6 4.8 4.5 (5.2)

Ciujung AreaMean rainfall, mm 1950-67 185 121 124 83 82 76 43 53 128 205 257 256 1,613

F3 M~

a I-

ANNEX 2Page 1

INDONESIA

IRRIGATION VIII

Agricultural Production

Present Cropping Pattern

1. lMadiun Rehabilitation. The project area is part of the Madiun irri-gation systems in East Java province. Within the districts (kabupatens) ofMadiun, Magetan, Ngawi and Ponorogo, the total irrigated area of 140,000 haconsists of 117 separate, small irrigation systems (DP units), grouped intofour irrigation sections. The DP units are situated from 2,000 m elevationon the slopes of the adjacent volcanos Lawu and Wilis down to less than 100 mon the intervening valley floor. Only a relatively small part of the irri-gated areas, however, are above 500 m. Consisting of 26 DP units, the75,000 ha project area is located mainly on the valley floor. This areacomprises some 60,440 ha technical, 7,230 ha semitechnical, and 7,840 hanontechnical irrigation /1 as follows:/2

Irrigation SectionType of Irrigation System /1 Madiun Ngawi Ponorogo Barat Total

_____________-- (ha) ----- …---------

Technical 15,524 7,471 10,363 27,084 60,442

Semitechnical - 1,223 3,955 2,051 7,229

Nontechnical - 96 6,229 1,514 7,839

Total 15,524 8,790 20,547 30,649 75,510

2. During the wet season, paddy is irrigated on 65,700 ha and sugar-cane on the remaining 9,300 ha. During the dry season, this sugarcane areais also irrigated, plus 15,500 ha of paddy. Additionally 65,500 ha of

/1 Technical irrigation refers to fully developed and controlled systems;semitechnical to partially developed and controlled systems; and nontech-nical to village or simple irrigation systems. Annex 4 gives moredetails on all these systems.

/2 Area, yield and production statistics presented are averages for the fiveyears 1971-75, and come from data collected at the DP unit level. Thiswas also checked with data maintained at the subdistrict, district andprovincial level.

ANNEX 2Page 2

secondary crop (palawija crop) /1 are partially irrigated. About 30,000 haof the palawija area is planted early in the April-May period, and theremaining 35,500 ha is planted late in July-August. About 9,000 ha of thisarea follows sugarcane, which is harvested from June through August. Soybeanis the major palawija crop as it is well adapted to the heavier lowlandsoils, is reasonably tolerant to drought conditions, and matures in 90-100days. In this report, soybeans have been used to represent all palawijacrops. Cropping intensity varies from 140% in poorly watered areas up to270% in the better watered areas where some farmers can grow three crops peryear. The overall project area croplping intensity is about 208%. Table 1shows the cropping patterns and production estimates at present and in futurewithout the project.

3. Depending on water supplies, cropping patterns vary widely through-out the project area. In the best watered areas, two paddy crops may befollowed by a palawija crop, or wet-season paddy be followed by two palawijacrops. In less favored areas, wet-season paddy is usually followed by apalawija crop or fallow. Since sugar factories grow only one crop everythree years on any particular piece of land, sugarcane is rotated over about28,000 ha. Immediately following the sugarcane! harvest, farmers usually growsoybeans on the sugarcane beds.

4. Wet-season rice is grown between October and May. Depending on thestart of irrigation supplies, farmers transplant over some 12 weeksbetween November and early February. They harvest over ten weeks betweenMarch and May. Farmers grow dry-season paddy between March and August,transplanting in March-May and harvesting in July-August. While most farmersadhere to the above timetables, DP unit crop calendars can vary considerablydepending on the degree of water cont:rol in the unit. All rice is transplantedfrom field nurseries onto previously puddled land. Early soybean crops aregrown from late March to mid-August and late crops from July to November.Depending on water supplies, these crops may receive from two to four irriga-tions. Following sugarcane, this is largely restricted to splashing waterover the old sugarcane beds from the drainage ditches. Most soybean crops,however, suffer moisture stress and a,re mainly dependent on rainfall andresidual subsoil moisture from the preceding crop. Sugarcane is grown fromMay to August the following year, and has first priority on available watersupplies. Factories rent land from farmers, and grow only a plant crop over12-14 months, while farmers may now grow a plant crop and one ratoon over23-25 months.

5. Farmers sow 80% HYV rice in the wet season and 70% in the dry sea-son. Average wet-season paddy yields 3.2 ton/ha, and dry-season 2.8 ton/ha.Paddy yields are affected by poor water management, inadequate water suppliesand unsatisfactory agricultural input services. The main soybean varietysown is variety No. 29, released by the Central Research Institute of Agricul-ture. Average yields are 0.6 ton/ha for the early crop, and 0.44 ton/ha for

/1 Palawija crops are crops other than rice, sugar and the estate crops.Major ones are soybeans, corn, cassava, groundnuts, green beans andvegetables.

ANNEX 2Page 3

the late crop. Inadequate water supplies principally cause the low yields.Factory sugarcane yields average 100 ton/ha, but farmers yields averageconsiderably lower at 70 ton/ha.

6. Groundwater Pilot Project. The three pilot groundwater developmentareas are also in the Madiun region of East Java province. Their croppingpatterns and timetables are similar to the Madiun rehabilitation area. Thefirst two areas, 1,300 ha at Balong in Ponogoro district and 1,200 ha atCaruban in Madiun district, are already partly irrigated, and are within DPunits to be rehabilitated (DP39,49 and DP 70 respectively). However, insuf-ficient surface water restricts the present cropping activity and intensity.At present, all the Balong area is planted to wet-season paddy, 100 ha of thearea to dry-season paddy, and 820 ha to early palawija crops, giving anannual cropping intensity of 171%. Similarly all the Caruban area is plantedto wet-season paddy, 300 ha to dry-season paddy, and 600 ha to palawijacrops, giving an annual cropping intensity of 175%. For both areas, averagecrop yields are: wet-season paddy 3.0 ton/ha; dry-season paddy 2.2 ton/ha;and soybean 0.5 ton/ha.

7. The third area, 300 ha at Tanon in Sragen district is rainfed.The entire area is planted to wet-season paddy and 120 ha to early palawijacrops, giving an annual cropping intensity of 140%. Average crop yields are:wet-season paddy 1.8 ton/ha; and soybean 0.4 ton/ha.

8. Ciujung Drainage. The Ciujung drainage area consists of severalsmall parcels of irrigated land within the existing Ciujung irrigationrehabilitation project in West Java province. Wet-season rice is plantedover the entire 5,700 ha and dry-season rice over 850 ha, giving an annualcropping intensity of 115%.

9. Wet-season rice is grown from November to June and dry-season fromApril to October. Because of flooding during December to February, farmersmay have to replant considerable portions of their wet-season crops. Paddyyields average 2.2 ton/ha in the wet season and 2.6 ton/ha in the dry season.Not only does the flooding reduce yields, damage irrigation facilities anddiscourage farmers from constructing tertiary and quaternary canals anddrains, but by extending the wet season-crop period it reduces the area ofdry-season crop farmers can plant.

Future Cropping Patterns

10. Madiun Rehabilitation. Without the project, the increasingdeterioration of the irrigation system's capacity and level of water controlis expected to outweigh any possible crop yield increases due to varietalimprovement or better farming practices. Due to increasing canal siltationand breakdown of intake and other control structures, crop yields would dropby up to 10% by 1986. Wet-season paddy would average 3.0 ton/ha, dry-seasonpaddy 2.5 ton/ha, early soybeans 0.55 ton/ha, and late soybeans 0.4 ton/ha.Sugarcane yields, however, would not be affected as cane areas have firstpriority on available water supplies. Varietal improvement would increasefactory cane yields to 110 ton/ha and this, plus the spread of the BIMASsugar program, would increase farmer cane yields to 90 ton/ha.

AMINEX 2Page 4

11. As the project area is already intensively cultivated, and practi-cally all available surface water resources utilized, the project would notincrease the area irrigated. The cropping pattern and annual croppingintensity would remain as at present (Table 1).

12. Groundwater Pilot Project. WiLthout the project, the Balong andCaruban areas wet-season paddy yield would reach the level expected withrehabilitation of the Madiun irrigation area. Since surface water suppliesare limited, and this area would have last call on dry-season supplies,dry-season yields would increase only 20% over existing yields. Wlet-seasonpaddy yield would average 4.2 ton/ha, dry-season paddy 2.6 ton/ha, andsoybean 0.6 ton/ha. The annual cropping intensity would not increase.Resulting from varietal improvement and improved crop protection, the Tanonarea yields are expected to increase by up to 10%. Wet-season paddy yieldswould average 2.0 ton/ha, and soybean 0.44 ton/ha. The annual croppingintensity would not increase.

13. Table 2 shows the expected changes in cropping patterns and produc-tion with the project. While this is a pilot development and extensionworkers would need to experiment with cropping patterns and yields to obtainmaximum returns, the following changes are considered feasible and consistentwith local farming practices. At Balong, Caruban and Tanon, groundwater sup-plies would enable farmers to irrigate Et dry-season paddy crop on 50% of theproject areas, an early palawija crop on 50%, and a late palawija crop on50%. Additionally, at Tanon farmers could irrigate the wet-season paddycrop. The overall project areas cropping intensities would be 250% per year.

14. Ciujung Drainage. Without the project, crop yields and patternswould remain as now. The frequent flooding would discourage farmers fromupgrading or intensifying. production. With the project, the shorter wet-season crop period would allow the dry-season paddy crop to increase from850 ha to 2,300 ha, and the overall project area cropping intensity to risefrom 115% to 140% (Table 1).

Future Yields

150 With good water management, control and distribution, a strengthenedand improved extension service, and adequate credit and input supplies, theestimated future crop yields would average:

Average Yields (ton/ha)Paddy Soybeans Sugarcane

Wet Season Dry Season Early Late Factory Farmer

Madiun Rehabilitation 4.2 3.8 0.8 0.63 110 90

Pilot Groundwater 4.2 4.2 1.2 1.2 - -

Ciujung Drainage 3.6 3.8 - -

AM;NEX 2Page 5

The projected yields would be achieved five years after the introduction ofwater, or completion of drainage or rehabilitation works. Madiun dry seasonyields allow for water shortages, more severe on the paliwija crops than thepaddy area, and Ciujung yields assume minimum tertiary, and no quaternary,canal development. Providing GOI could sufficiently expand the necessaryagricultural supporting services, all average crop yields could be higher.

16. The project would not increase sugarcane yields as cane areasalready have the best water supplies, which are reasonably well maintained.The improved yields would be assisted by the use of HYV rice varietiesthroughout all areas, certified seed, and improved efficiency of credit andinput services. The introduction to the project areas of the National FoodCrop Extension project would play a key role in the organization of farmergroups for extension, crop production, and water management. The forming ofthe groups would help in synchronizing cropping patterns and calendars withprojected water deliveries, increasing contact between individual farmers andgovernment programs, and ensuring better use of resources and inputs availableto each farmer.

Development Constraints

17. The most important possible constraints to the project's successare discussed briefly. Other items (seed, fertilizer, credit, extension) arediscussed in Annex 3.

18. Crop Calendars and Water Management. At MIadiun, water management,control and distribution in the main system and at the tertiary-quaternaryunit levels nust be substantially improved. At present, all available sur-face water is used. Water wasted in the upper sections of a system usuallyfinds its way back into the system or overall systems, and is utilized fur-ther downstream. Thus, increased crop yields would result from better dis-tribution of the existing water supply. In addition, water management mustbe integrated with crop patterns and calendars. Water user groups wouldbe organized to smnchronize crop calendars and projected water supplies, andto carry out improved water distribution and system maintenance at thetertiary and quaternary levels.

19. Crop Protection. Major rice pests are stemborer, rats, leptocoriza(rice bugs) and brown plant hopper. So far in the MIadiun area, seriousoutbreaks of the brown plant hopper have been restricted to a few, smallareas. The agricultural service hopes to contain the pest by introducingresistant varieties (IR26, 28, 30 and 34) and chemicals. According to localdata, farmers use on average one liter/ha of insecticide, but pest control isinadequate. Common soybean pests are the bean shoot fly (Mtalagromyza andAgromyza sp), leaf eating caterpillars, and pod sucking insects. Farmers donot use agrochemicals on soybeans, and do not report insect pests as a majorprobler. However, there appears to be considerable insect damage which isnot identified by the farmers. Following introduction of the National FoodCrops Extension project, extension workers would identify crop pests, andassist farmers protect their crops.

AflNEX 2Page 6

20. Draft Animals. At present, there is one pair of working draftanimals (buffalos and cattle) to 1.5 ha of irrigated land in the Madiunresidency. Since 1973, the number of working draft animals has beenfalling by 3% per year. If this trend continues, farmers could have diffi-culties in the timely preparation of land for the dry-season rice crop. TheBank Rakyat Indonesia does make loans avaialble for draft animal purchases;however, these animals would have to come from outside the residency. Atpresent farmers do some 20% of their paddy cultivation by hand. If the fallin the draft animal population cannot be stopped, farmers would have tocultivate more by hand.

21. Harvesting, Drying and Storage. Farmers harvest rice using smallknives (ani-ani) or, occasionally, sickles. They thresh the crop by treadingon the panicles or beating them on a threshing floor. Paddy is sun-dried onmats in the house yard or on the roadside. Lack of proper concrete dryingfloors makes drying of the wet-season rice crop difficult and losses fromrainfall can be considerable. Although the Government has initiated aprogram to provide drying floors at farmer cooperatives (BUUD/KUDs), moredrying floors are required. Farmers store bagged paddy or dry stalk paddy intheir houses or on racks in small outbuildings until it is sold or consumed.This storage is not always vermin proof and cannot be readily fumigated tocontrol insects. Storage losses are around 5-8% while losses during harvest,drying, and storage could be as high as 15-20%.

22. Processing. BUUD/KUDs and individuals own some 450 rice mills andhullers in the Madiun project area. Assuming an eight-hour working day and a200-day milling season, the mills have an annual capacity of 360,000 tons ofpaddy compared to the current area production of 283,000 tons. Slightly moremilling capacity would be needed at full development; however, BUUD/KUDs andindividuals would provide this when required. The same situation holds atCiujung.

Marketing

23. Rice marketing channels and problems are described in the IrrigationProgram Survey (Report No. 705-IND), and in Annex 12. Farmers sell theirpalawija crop production in village and subdistrict markets. Facilities atthese markets are being upgraded where necessary under the INPRES program.Some BUUD/KUDs are disseminating information on market prices to their mem-bers. Local authorities should encourage the spread of this price informa-tion, and should monitor markets to see they work efficiently.

ANNEX 2Table 1

INDONESIA

IRRIGATION VIII

Cropping Patterns and Production

Present Future without project At full project development /aArea Yield Production Area Yield Production Area Yield Production(ha) (ton/ha) ('000 ton) (ha) (ton/ha) ('000 ton) (ha) (ton/ha) ('000 ton)

Madiun Rehabilitation

Wet season

IrrigatedRice 65,700 3.2 210.2 65,700 3.0 197.1 65,700 4.2 275.9Factory sugarcane 6,600 - - 6,600 - 6,600 -Farmer sugarcane 2,700 - - 2,700 - 2,700 -

Subtotal 75,000 75,000 75,000

Dry season

IrrigatedRice 15,500 2.8 43.4 15,500 2.5 38.8 15,500 3.8 58.9Factory sugarcane 6,600 100.0 660.0 6,600 110.0 726.0 6,600 110.0 726.0Farmer sugarcane 2,700 70.0 189.0 2,700 90.0 243.0 2,700 90.0 243.0Soybean I /b 30,000 0.6 18.0 30,000 0.55 16.5 30,000 0.8 24.0Soybean II 35,500 0.44 15.6 35,500 0.4 14.2 35,500 0.63 22.4

Subtotal 90,300 90,300 90,300

Annual summary

Paddy 81,200 - 253.6 81,200 - 235.9 81,200 - 334.8Sugarcane 9,300 - 849.0 9,300 - 969.0 9,300 - 969.0Soybean 65,500 - 33.6 65,500 - 30.7 65,500 - 46.4

Total cropped area 156,000 156,000 156,000

Cropping intensity 208% 208% 208%

Ciujung Area

Wet season

IrrigatedRice 5,700 2.2 12.5 5,700 2.2 12.5 5,700 3.6 20.5

Dry season

IrrigatedRice 850 2.6 2.2 850 2.6 2.2 2,300 3.8 8.7

Annual summary

Paddy 6.500 - 14.7 6,550 - 14.7 8,000 - 29.2

Cropping intensity 115% 115% 140%

/a In 1986.

/b Soybean I = early crop planted after wet season rice.Soybean II = late crop planted after Soybean I or sugarcane.

INDONESIA

IRRIGATION VIII

Cropping Patterns and Production: Groundwater Pilot Project

Present Future without project At full proiect development /aArea Yield Production Area Yield Production Area Yield Production(ha) (ton/ha) ('000 ton) (ha) (ton/ha) ('000 ton) (ha) (ton/ha) ('000 ton)

Wet season

IrrigatedRice 2,500 3.2 8.0 2,500 4.2 10.5 2,800 4.2 11.8

RainfedRice 300 1.8 0.5 300 2.0 0.6

Subtotal 2,800 2,800 2,800

Dry season

IrrigatedRice 400 2.2 0.9 400 2.6 1.0 1,400 4.2 5.9Soybean I /b 1,420 0.5 0.7 1,420 0.6 0.9 1,400 1.2 1.7Soybean II - - - - - - 1,400 1.2 1.7

RainfedSoybean 120 0.4 0.05 120 0.44 0.05

Subtotal 1,940 1,940 4,200

Annual summary

Paddy 3,200 9.4 3,200 12.1 4,200 17.7Soybean 1,540 0.75 1,540 1.0 2,800 3.4

Total cropped area 4,740 4,740 7,000

Cropping intensity 169% 169% 250%

/a In 1986.

/b Soybean I = Early crop; Soybean II = Late crop.

mb1

ANNEX 3Page 1

INDONESIA

IRRIGATION VIII

Agricultural Supporting Services

1. Previous irrigation project appraisal reports, and the IrrigationProgram Survey report (No. 705-IND) have described the organization ofagricultural supporting services in Java. In addition, the National FoodCrops Extension Project report (No. 1105a-IND) describes in detail the BIMAS(farm production credit and inputs) program, and the revised agriculturalextension service, which will ultimately be introduced to the project areas.This annex, thus, only briefly describes the programs and supporting servicesavailable to farmers.

2. The principal government agencies in the project area are:

(a) the Directorate General of Water Resources Development (DGWRD) -contains agencies implementing water resource development projects,and, through the Provincial Irrigation Services, operates irrigationsystems to the secondary canal turnout;

(b) the Directorate General of Food Crop Agriculture (DGFC) - withinthe Ministry of Agriculture, plans and executes food crop productionprograms, and operates extension, seed production and plant protec-tion services;

(c) the Directorate General of Cooperatives (DGC) - operates farmercooperatives (BUUD/KUDs);

(d) Bank Rakyat Indonesia (BRI) - main rural credit supplier;

(e) BULOG/DOLOG - the national paddy/rice marketing agency;

(f) Agency for Research and Development (ARD) - within the Ministryof Agriculture, carries out agricultural research and developmentprograms; and

(g) the Ministry of Home Affairs (MIIA) - provides the provincial andlocal administrative services.

3. All agencies have a Central Directorate in Jakarta, which plans,supervises, provides technical assistance and finances programs on a nationalbasis. Each agency is represented at the provincial and district (kabupaten)levels, and sometimes also at the subdistrict (kecamaten) and village (desa)levels. Staff assigned to the provinces are administratively responsible tolocal government, that is the Governor (province) and the Bupati (district),who coordinate the programs and activities of the agencies within their areaof command, and provide basic salaries and operating expenses.

ANNEX 3Page 2

Research

4. ARD conducts research for paddy and secondary crops at the NationalResearch Centers for Paddy and Secondary Crops in Sukamandi, and at a numberof field stations. Under the National Food Crops Extension project (NFCE)(Loan 1267-IND), subject matter specialists would conduct adaptive researchat the district or subdistrict level. Tegalgondo Seed Improvement Center isthe nearest ARD field station to the Madiun project area. Here, workersproduce rice and secondary crops foundation seed, carry out rice varietaladaption and fertilizer trials, and new varietal adaption trials for secon-dary crops.

Extension

5. The Bank-assisted NFCE project would be introduced into eachproject area. The four districts (Madiun, Magetan, Ngawi and Ponorogo),into which the Madiun rehabilitation area falls, have only 144 field exten-sion workers (PPL) to service 467,000 farm families, an average ratio of 1PPL:3,200 farm families. Under the NFCE project, this ratio would be reducedto 1:1,700. Additionally, the extension service operates 14 rural extensioncenters (REC), has 31 senior extension workers (PPM), and four subject matterspecialists (PPS). Under the NFCE project, one new REC would be built, tenRECs rehabilitated, seven PPMs, seven PPSs and four district extension offi-cers hired, and the necessary furnishings and equipment provided to bring theextension service up to the NFCE project standards.

Credit and BIMAS Program

6. Farmers obtain credit from six main sources: BRI, BUUD/KUD, villagecooperatives (Lumbung Desa), landlords, merchants and relatives. Under theBIMAS program, BRI is the main source of production credit. For irrigatedrice production, a farmer can obtain up to Rp 37,000/ha to cover seed, ferti-lizer, insecticide, rodenticide, spraying, and cost-of-living expenses. Thiswould cover about 80% of estimated cash costs at full project development.The loan is for seven months at 1%/month interest rate. To be eligible forthe loan, a farmer must not be more than two years overdue with his earlierBIMAS repayments. BIMAS loans are also available for soybean, corn, ground-nut, green pea, sorghum and sugarcane production. At present, in the Madiunarea, the BTIAS program covers 75% of the irrigated wet season paddy, 37% ofthe irrigated dry-season paddy, and 5% of the soybeans, corn and groundnuts.At Ciujung, the BINAS program covers 42% of the irrigated wet season paddy,and 6% of the irrigated dry-season paddy. Assuming that at full projectdevelopment, BIMAS covered 85% of the rice area and 40% of the secondary croparea, at a loan level of Rp 37,000/ha for rice and Rp 26,000/ha for secondary2rops, the annual project area credit requirements would be Rp 3,035 millionat Madiun, and Rp 180 million at Ciujung. While BRI would be able to supplythese funds, it would have to increase its field staff to avoid delays inprocessing and issuing BIMAS credits. At present the BRI officer to farmerratio is about 1:1,600, which is insufficient to efficiently handle thepresent BIMAS coverage.

ANNEX 3Page 3

7. BRI also supplies farmers and BUUD/KUDs with some medium-termcredit (one to five years) for purchases of draft and breeding cattle, pigsand chickens, hullers, water pumps, grain storage and drying floors. However,the volume is low, application procedures are complicated and repayment termsrestrictive. Most loans are for one to three years. A greater volume ofcredit is required, and over longer repayment periods, particularly forstorages or land development. The Bank is already assisting BRI in providingmedium term credit under Credit 480-IND. Although its repayment terms areeasier than BRI's general repayment terms, it is restricted to a few provinces.A rural credit project, currently being considered for financing, would providecredit for up to a maximum of 15 years over 7 provinces.

Seed

8. Madiun. Approximately 3,250 tons of rice seed are currently usedeach year in the project area. About 80% of the seed is obtained by retentionfrom the farmers' production and 20% from seed growers. Under the Provincialagricultural service's plans, seed growers would supply in future a muchlarger percentage of farmer's paddy seed, even up to near 100% when diseaseattacked varieties must be replaced. The district seed farms multiply founda-tion seed from the provincial seed farms, and the produce is distributed toseed growers or demonstration plots. Some of the seed growers' production iscleaned, tested and certified by the district seed station; the rest is solddirectly to farmers. In addition, BUUD/KUDs may purchase seed from growers,have the seed cleaned and tested, and then resell it to farmers. At present,Madiun, Magetan, Ponorogo and Ngawi districts have 45 ha of district seedfarms, 79 ha of demonstration plots, and 1,040 ha of seed growers' farms.This is more than sufficient to supply the entire Madiun residency presentdemand, and sufficient to meet future demand; however, only some 20-30% ofthe seed sold to farmers is of good quality. More seed production inspectorsare required to supervise growers and check quality during production andmarketing. At present, good quality soybean, corn or groundnut seed is notproduced. A workable storage system must be provided to carry these seedsover from October to March without substantial losses in the germinationpercentage. At full development, project farmers would use about 2,450 tonsof rice seed per year. If rice seed would be renewed every third crop year,the estimated annual requirement of quality seed would be 800 tons.

9. Ciujung. Approximately 450 tons of rice seed are currently usedannually in the project area. Farmers purchase about 10% of the seed fromBUUD/KUDs or local seed farms; the remaining 90% they retain from their ownproduction. BUUD/KUDs distribute certified seed from the National SeedCorporation at Sukamandi (Bank-assisted under Credit 246-IND). At fullproject development, because of reduced crop replanting, farmers would useonly 250 tons of rice seed annually. If farmers would renew their rice seedevery third crop year, the estimated annual requirement of quality seedwould be 80 tons.

Fertilizer

10. Madiun. Supplied mainly under the BIMAS program, project areafarmers currently apply some 18,000 tons of fertilizer annually to their rice

ANNEX 3Page 4

and secondary crops. This consists of 13,000 tons of urea and 5,000 tons oftriple superphosphate (TSP). Application rates are relatively high on therice crops, being 170 kg/ha of urea and 50 kg/ha of TSP in the wet season,and 120 kg/ha of urea and 40 kg/ha of TSP in the dry season. Crop yields,however, are not consistent with these application rates. Due to incorrectapplication procedures and timing, much of the fertilizer is wasted. Secon-dary crops receive some 20 kg/ha of TSP. At full project development, riceand secondary crops would require some 22,300 tons of fertilizer annually,consisting of 15,600 tons of urea and 6,700 tons of TSP. Fertilizer distri-bution and storage would have to be improved at the village level. Improvedextension services under the NFCE would assist farmers to use their fertilizermore efficiently. Local road upgrading under the INPRES program would improvevillage level fertilizer distribution.

11. Ciujung. Farmers currently apply some 600 tons of fertilizerannually in the project area, consisting of 500 tons of urea and 100 tons ofTSP. At full project development, rice crops would require 1,800 tons offertilizer per year, consisting of ]L,400 tons of urea and 400 tons of TSP.Again, the fertilizer distribution and storage systems would have to beimproved at the village level. This will be done as described in para. 10.

Farmer Organizations

12. Two main farmer groups operate in the project area: farmer coopera-tives (BUUD/KUD) and water user groups. BUUDs are precooperatives, whichconvert to full cooperatives, KUDs, when proven viable. They distributefertilizer and agrochemicals, provide paddy drying, cleaning, storage andmilling services, and act as the rice procurement authority's (BULOG/DOLOG)agent in the village, buying paddy directly from farmers. At Madiun, there are47 BUUD/KUDs in the project area, and 19% of the farmers are members. Theexpansion of membership and services offered to members are constrained bypoor management and little supervision or technical support by the DGC.

13. The water users group is a traditional organization in the villageof farm irrigators. The village headman controls it and is assisted by anelected representative of the village (the ulu.-ulu). In return for contribu-tions by irrigators from their crops, and sometimes an area of village A'celand, the ulu-ulu organizes water distribution and maintenance of the irriga-tion system below the tertiary outlet. In many areas, the water user groupsare inefficient, and their organization to integrate cropping calendars andthe operation and maintenance of the irrigation system at the farm level isbasic to increasing crop yields. To do this, irrigation and food cropextension officials must work as a team, as would be done under the proposedagricultural development plan for Loan 1100-INI).

ANNEX 4Page 1

INDONESIA

IRRIGATION PROJECT VIII

The Project Works

1. The general location of the project works is shown on Map 12631.The Madiun Rehabilitation project is shown on Map 12634; the Madiun Ground-water pilot project, on Map 12634; and the Ciujung drainage project, on Map12633.

Madiun Rehabilitation, Stage I

2. The project area consists of 26 contiguous service units (Table 1)in four irrigation sections classified as technical (60,000 ha), semitechnical(7,200 ha) and nontechnical (7,800 ha). /1 The total Stage I area of 75,000 halies mostly in the lower, flatter center of the Madiun valley; the rehabilita-tion of the peripheral 65,000 ha will be carried out at a later stage.

3. The Madiun irrigation area is served by a highly developed networkof predominantly technical systems, most of which are covered by rudimentarytertiary systems. Water is, with few exceptions, supplied on a run-of-riverbasis, and some of the main diversion structures date back to the end of the19th century. Over the decades project works have deteriorated, both struc-turally and through extensive siltation, so that there is a risk of losingessential structures. Such features as diversion and sluice gates areblocked by silt and boulders precluding proper operation, and conveyanceworks have lost their original capabilities to serve farmers' needs. Roads inthe area have likewise deteriorated, with travel during the wet seasonseverely restricted and sometimes impossible. The works proposed for Stage Iwould restore/upgrade the entire service area to full technical standards,and rehabilitate and upgrade tertiary systems to PROSIDA standards. Emphasiswould be put upon reducing siltation in the entire system, and associatedimprovements would be instituted in the fields of drainage, roads, andcommunications.

/1 Technical systems are those with gate-controlled permanent diversionweirs, measuring devices, and desilting facilities; their conveyancesystems have control structures and measuring devices on all primary andsecondary canals, including turnouts to tertiary canals. Semitechnicalsystems have permanent or temporary diversion weirs with control andmeasuring facilities, but their conveyance systems either lack thesefacilities or have them, but not to technical standards. Nontechnicalsystems are those without control and measuring facilities at the headworksand with conveyance and control structures either temporary or rudimentary.

ANNEX 4Page 2

4. Project works would comprise:

(a) rehabilitation and improvement of 216 headworks;

(b) rehabilitation of 440 km of primary and secondary canals,including 1,190 structures, channel clearing, and lining;

(c) rehabilitation and improvement of tertiary works on 30,000 ha;

(d) improvement of drainage systems;

(e) construction of buildings and housing for O&M personnel;

(f) improvement of about 450 km /1 of inspection and access roads;

(g) improvement of 338 km of telephone communication lines andrelated facilities; and

(h) procurement of vehicles and equipment.

5. Headworks. Some 80% of the Stage I area is supplied by run-of-riverdiversions, with the remainder coming from four small reservoirs, springs,groundwater, and river pumps. Diversion weirs are of both permanent andtemporary types. The former employ manually operated vertical lift gates,many of which are inoperable and most of which require replacement or repair.The erosion of wingwalls and aprons, furthermore, threatens the stability ofsome of the major diversion structures, river aggradation over the decadesprevents adequate hydraulic control at canal intakes, and desilting structuresare unable to reduce the sedimentation rate in conveyance systems. Under theproject, existing sluice and delivery gates would be serviced and restored;geared hoists would be provided, and, where necessary, would be poweroperated; damaged structures would be repaired to their original condition;all works serving 16,000 ha or more would be brought to technical standards;all headworks serving more than 100 ha would be provided with diversion weirs,sluicing facilities, and measuring devices; existing desilting basins would beupgraded; and new desilting works would be constructed for those canalsserving more than 1,000 ha which presently lack them.

6. Canals and Canal Structures The major problems with canals haveresulted from siltation and erosion. The former has significantly reducedcanal capacities. In some cases silt has been deposited on fields to aheight where they can only receive part of the flow required from the convey-ance system. These effects in turn have resulted in water wastage at thetime that water is in short supply. Erosion has destroyed canal banks,encroached on roadways, undermined structures, and increased seepage. Manycontrol structures are presently inoperative, damaged, and missing components;measurement devices are often inoperative or insufficient in number to afford

/1 Some 120 km of district roads that are used for access to the project aremaintained by the Kabupatens and would not require assistance form theproject.

ANNEX 4Page 3

efficient control. Existing canal linings are in general in sound condition,with the notable exception of those near structures. Under the project,canals and structures would be rehabilitated to ensure structural stabilityand provide the required capacity. In many cases this would entail theconstruction of new works or the raising of existing diversion and controlstructures to enable them to serve their original command areas. Wherevelocities are excessively high, check and drop structures would be added,and masonry lining would be introduced, where required, to prevent erosionand curtail seepage losses.

7. Tertiary Systems. Existing tertiary facilities are inefficient andunable to provide equitable water distribution because ditches are too longand turnouts and measuring facilities are generally primitive or lacking.Canal embankments have deteriorated and field-to-field irrigation is common.As a result, some agricultural inputs are lost, seepage is excessive, andremote fields are less satisfactorily served than those that are adjacent toor near canals. In upgrading these systems to the PROSIDA standards devel-oped under Loan 1268-IND, the project would limit tertiary units to serveabout 150 ha maximum and provide modular, modern turnouts, measuring facili-ties, and lining for the first 50 m of canal if shown to be required. Thefarmers would excavate the tertiary and quaternary canals and drains undertechnical supervision provided by the project, at daily wage rates equal tothe prevailing rates for work done under the INPRES program.

8. Drainage. Existing farm drains would be improved by the farmersand new drains would be added, if required, in conjunction with the improve-ment of tertiary systems. They would be designed to limit the duration offlooding to 72 hours or less during the occurrence of a 5 year storm.

9. Buildings and Housing. At present, office buildings, shops, andhousing are inadequate for the proper operation and administration of irriga-tion systems in the Madiun area. Under the project, the following will beprovided: 19 sub-section offices, 11 gate-tender stations, 181 inspector'shouses, 1 central workshop, and 4 section storehouses.

10. Roads and Bridges. Unpaved access roads in the Madiun area arehazardous and sometimes impassable in the wet season, with the result thatheadwork structures and inspection roads cannot be reached during criticalperiods. Inspection roads are in general eroded and often nonexistent alongsome canals. Wooden and bamboo bridges are deteriorated and too widelyspaced for the efficient operation and maintenance of the works and themovement of produce. Under the project, about 460 km of inspection and accessroads would be upgraded to all-weather standards by providing a 15 cm thick,compacted gravel or crushed stone surfacing on the 4.5 m wide roadway.Motorcycle paths would be constructed along smaller canals. Vehicularbridges would be spaced at 3-5 km intervals ajong canals, with animal/pedes-trian crossings in between.

11. Communications. Present telephone facilities do not permit theefficient coordination of administrative and operation activities in thearea. The project would improve 338 km of telephone lines and associatedequipment throughout the area.

ANNEX 4Page 4

Madiun-Solo Groundwater Pilot Project

12. The proposed project would involve development of groundwaterresources to serve about 2,800 ha in three pilot areas of 300 ha (Tanon),1,200 ha (Caruban), and 1,300 ha (Balong). The pilot schemes would identifyand evaluate alternative engineering, geohydrologic, agricultural, social,economic, financial, operational and institutional possibilities for applica-tion in potential future groundwater developments throughout Indonesia.

13. The Tanon pilot area is located northeast of Solo in the Solo Riverbasin, and the scheme would involve development of groundwater for the irri-gation of presently rainfed lands. The Balongy pilot area, near Ponogoro,lies along both banks of the Anjar River, in the upper Madiun River basin.Block A on the west bank embraces about 800 ha that are presently served bya technical irrigation system from the Sungkar River; Block B, of 500 ha, liesalong the east bank, and is served by a semitechnical system from the AnjarRiver. The Caruban pilot area lies northeast of Madiun and is currentlyserved by a technical system which draws its surface water supply from theNotopuro river. The water supply for both the Balong and Caruban pilot areasis inadequate and groundwater would be utilized conjunctively with theavailable surface water. Rehabilitation of the irrigation systems for bothareas would be done as a part of the Madiun Irrigation System Rehabilitation(paras. 2 and 3).

14. The pilot project would include a system of 33 deep wells (3 inTanon,/l 19 in Balong, and 11 in Caruban) to provide a year-round watersupply in all three areas. The wells would be equipped wth turbine pumpswith individual diesel engine drives.

15. Wells in the Tanon area would be 100-150 m deep, have a projectedyield of 75 liters per second (1/sec) with a lift of about 20 m and commandan area of about 100 ha each. Peak demand from the well system (0.23 cum/sec) is projected to occur in December, at the beginning of the wet seasonpaddy crop. A new irrigation system down to the quaternary canals, eachcommanding about 15 ha, would be required in the Tanon area and is includedin the project. About 3 km of tertiary and 15 km of quaternary canals wouldbe required. A minor terminal drainage system is also included to conveyexcess storm and return flows to natural drainageways. Rehabilitation ofabout 2.5 km of village and farm roads would be required to assure appropriateaccess to the wells. No new road system would be required in this area.

16. For the Balong area, wells would also be 100-150 m deep, have aprojected yield of 40 1/sec with a lift of 20 m, and command an area of about

/1 These three wells were drilled and cased under Credit 289-IND; all theremaining wells would be new.

ANNEX 4Page 5

80 ha each in Block A and about 55 ha each in Block B. Peak demand forgroundwater would occur during December, the beginning of the wet paddyseason and total about 0.7 cu m/s (0.4 cu m/s for Block A and 0.3 cu m/s forBlock B). In Block A, about 3 km of secondary canals with appurtenanttertiary canals are in place. For Block B, there is less than 1 km ofsecondary canal and a few tertiary canals in place. All of the existingcanal systems are in need of rehabilitation that would be provided under theMadiun Irrigation System Rehabilitation portion of the project. No drainagenetwork would be required in the Balong area, but about 2 km of new accessroads would be required and about 5 km of existing village roads wouldbe upgraded or rehabilitated.

17. Wells in the Caruban area would be 150-200 m deep, have a projectedyield of 60 1/sec at 40 m lift, and command an area of about 110 ha each.Peak demand from the well system is projected at 0.65 1/sec. All irrigationand drainage canals in the area, down to the tertiary and quaternary levelswould be rehabilitated or constructed under the Madiun irrigation subproject.Access to the area would be facilitated by the construction of 2 km of newroad and the rehabilitation and improvement of 7.5 km of existing villageroads.

Ciujung Drainage

18. Flooding on the coastal area of the 24,300 ha Ciujung subproject,which was rehabilitated by PROSIDA under Credit 220-IND, is produced by localrunoff that is not evacuated fast enough by the internal drains, and byoverbank flow from rivers which collect runoff from upstream catchments andflow through the area before discharging into the Java Sea. Sixteen separatepockets of land totaling 5,700 ha require drainage upgrading to solve thisflooding problem. It will serve as a pilot project to develop useful guide-lines for the evaluation of similar programs in low-lying areas within theother rehabilitated areas. To estimate the numbers and quantities of internaldrainage works required (paras. 20-25), a detailed study was made of a 2,000 hasample area lying immediately to the east of the Ciujung area, and findingswere extrapolated to the latter's entire 5,700 ha on a per ha basis. Forriver channel and embankment improvement (para. 25), as well as for roadsurfacing and bridges (para. 26), inventories of requirements were carriedout through the entire area to be rehabilitated.

19. The project would comprise:

(a) rehabilitation and improvement of the primary drainage systemincluding 23 gated control structures, 6 weirs, 21 box culverts, 91pipe drains, and several check dikes;

(b) rehabilitation of about 150 km of existing secondary drains andconstruction of 30 km of secondary and 7 km of primary collectordrains;

(c) desilting of 7 km of river channel coupled with the reconstruc-tion of flood protection embankments; and

ANNEX 4Page 6

(d) bituminous surfacing of 5 km of road, reconstruction of 5 bridges,and construction of about 50 km of gravel-surfaced all weatherroads and 150 km of dirt roads along drainage embankments.

20. Internal Drainage Structures. Control structures at the outlets ofsecondary drains will consist of one or more bays with rectangular, counter-weighted flap gates 2.0 m in width. These flap, gates, which permit onlyunidirectional flow will enable discharge from the interior area when waterlevels exceed those in the receiving primary drain or river but would preventreverse flow when outside water levels are higher. The manually operatedvertical slide gate upstream of the flap gate in each bay would retain waterfor agricultural and domestic use during the dry season and facilitate trashremoval and maintenance of the flap gate during the wet season. These gateswill be mounted in a reinforced concrete structure with gabion-lined transi-tions upstream and downstream, a design which has proved workable in othercoastal areas with similar drainage problems. At present the project area isdeficient in control structures and where they exist, are generally function-ing improperly owing to inadequacies of design and maintenance.

21. An estimated six weirs would be required in the area to retainwater in the interior drainage channels during the dry season. These wouldbe simple multi-bay reinforced concrete structures with manually operatedvertical gates 2.5 m in width. They would render unnecessary the presentpractice of farmers of blocking secondary drains with earthen dams duringthe dry season, to obtain additional irrigation water. These dams are notremoved at the onset of the wet season and hence impede local drainage,whereas the proposed weirs would simply be openied at the outset of themonsoon rains.

22. Reinforced concrete box culverts would be used for spans of lessthan 6.0 m where roads cross drainage channels within the project area; theywould thus enable vehicular traffic to operate in areas that are currentlycompletely isolated in the wet season and difficult to reach in the dryseason.

23. More than 90 concrete pipe drains typically 0.50 m in diameterwould convey excess water from local areas averaging 60 to 65 ha to secondarydrains. They will pass through the embankment of the secondary drains andeliminate the farmers present practice of tearing down these embankments toremove excess water.

24. Small earthen check dikes would be constructed to block some exist-ing arterial drains which have silted up over the years, owing to low dis-charges and the ineffectiveness of the moderate tides characteristic ofthe area to flush out accumulated sediment. These structures would divertflows to new collector drains, which would in tturn discharge into improvedprimary drains and rivers. In this way the increased wet-season flow in theunblocked major channels would provide more effective flushing of sedimentsout to sea. This would maintain channel capacities required to evacuateflood waters rapidly enough to avoid extensive crop losses. The diversion ofdrainage flows to a few channels would also reduce losses presently sustained

ANNEX 4Page 7

when commercial fish ponds, which lie along the coast between the agriculturalareas and the sea, are inundated and flushed out. Fish farmers would nolonger need to block drains to protect their ponds.

25. Secondary and Primary Collector Drains. Under existing conditions,5,700 ha in low-lying zones of in the Ciujung area are flooded more than oncein five years to depths and durations which necessitate one or more replant-ings and results in loss of some agricultural inputs and reduction of yields.The proposed rehabilitation of 150 km of secondary drains and the construc-tion of 30 km of new secondary and 7 km of primary drains would reduce theflood frequency, the areal extent, and the destructiveness of inundation fromrunoff within the Ciujung catchment. Using excavated materials from existingdrains, embankments would be raised along the newly excavated channels toincrease conveyance capacity and limit overbank flooding. These embankmentswould also serve as inspection and maintenance access roads, which arevirtually nonexistent in the project area.

26. River Improvement. The channel capacities of principal rivers anddrains in the area would be improved by dredging silt and sand bars whichimpede their flow. The excavated materials would be used to raise floodprotection embankments paralleling their courses. The 7 km of works proposedwould reduce overbank flooding to an average frequency of once in 50 years./lThe embankment heights and the level of protection provided by them would bereviewed by the project consultants, and GOI, in consultation with the Bank,may reduce their frequency of failure if it is shown that such failure wouldpose a serious threat to the rural population. Periodic dredging, whererequired, would be carried out as part of routine O&M services. This isexpected to be minimal, however, because of the sediment-flushing velocitiesthat would develop upon completion of the works.

27. Roads and Bridges. In addition to the improved accessibilityresulting from river and drain embankments, box culverts, and the roadwaysover internal drainage structures, the project would include the rehabilitationof 5 km of the Mauk-Terate district road running through the project arearoughly parallel to the coast. This vital link from the interior of theCiujung area to both the Jakarta-Merak state road and the state railroadwould be bituminous-surfaced for all-weather use. Five bridges along thisroad, which have spans of about 20 m and which have deteriorated since theirconstruction some 40 years ago, would also be rehabilitated or reconstructedas necessary.

Technical Assistance

28. This segment of the project would include four distinct activities:

(a) Audio-Visual Training Program;

(b) Cirebon-Rentang Tertiary System Design;

/1 This return period has been adopted by GOI for major flood control worksin Java.

ANNEX 4Page 8

(c) Mapping Program; and

(d) Text Processing and Records Depository and Retrieval System.

Each is designed to provide assistance to PROSI])A in more effectively carry-ing out its Bank-assisted projects through anci:Llary supportive activities.

29. Audio-Visual Training Aids Project. UJnder the Sixth IrrigationProject (Loan 1100-IND) assistance was provided to PROSIDA to initiate anaudio-visual program (AV) for staff training in operation and maintenance ofirrigation systems. A small classroom and some related facilities financedby GOI are nearing completion, and consultants and counterparts are well alongon the development of about 17 program concepts /l,of which 7 programs(slides synchronized with sound tapes) on operation and maintenance have beencompleted. An initial test group of trainees has been exposed to the firstseven programs, a trial instructor's training stession has been held and theresponse has been extremely encouraging. About 50 program concepts and 18full programs would remain to be completed before the expiration of thepresent contract.

30. The present terms of reference and contract with the expatriateconsultant (NEDECO) extend through June 1977. A major portion of theinitial contract time and effort has been expended in engaging and trainingcounterpart staff in AV technology, procedures, and conceptualization.The language barrier has been more significant than in many other jointexpatriate - counterpart efforts. In the operation and maintenance field,the program would be directed primarily to Pengamats (watermasters) and Jurus(ditchriders, gatetenders and damtenders), but Seksis (section heads) andWilayahs (district heads) would also to exposed to the program. If theprogram is expanded to cover construction supervision, the comparable audiencewould include i spection foremen, subforemen and site engineers, as well asdistrict heads.

31. The programs are intended to be utilized throughout Indonesia. Themany dialects and colloquial terminologies, varying degrees of technical andeducational levels of the intended AV program audience, and the fact that theprograms are written in English but delivered in Bahasa Indonesian make itnecessary to assure that the nuances and semantics of the translations areapplicable throughout Indonesia. In many instances, technical terminologyvaries over the country and over varying educational levels, which compoundsdifficulties in developing a fully comprehensives narrative.

32. A Steering Committee has been established within the DGWRD to moni-tor and advise on the direction of the AV program. Because of the success ofthe first test-training effort, the Committee rescognized that the program

/1 A program concept is a description of the subject matter for which adetailed scenario and text will be developed; a scenario consists ofdetailed instructions as to what slides and accompanying narrative textshould be prepared.

AUNEX 4Page 9

could be equally valuable in the construction supervision field, where quali-fied technicians for PROSIDA's projects are at a premium. The SteeringCommittee has, therefore, recommended that the ongoing program be fullycompleted and that it be extended to provide approximately 50 programs thatencompass construction supervision for PROSIDA field staff.

33. The project includes extension of the existing assistance contractwith NEDECO to enable them to complete 166 program concepts (116 for O&M and50 for construction supervision) and 116 programs (slides synchronized withsound tapes) on operation and maintenance and and 50 programs on constructionsupervision. Acquisition of additional AV equipment to provide each ofthe 26 provinces with the full AV training capability, further trainingof counterpart AV staff in AV technology (photograpy, cartography, cinema-tography, graphic arts), text writing and language training (English), bylocal instructors is also included in the project.

34. In addition, the project would include the construction of an AVtraining center consisting of classrooms, reproduction studio and laboratory,and offices with a total floor area of about 1,000 sq m, including all asso-ciated facilities, furniture and equipment (Table 5). Also included would bea dormitory for 120 trainees, 8 teacher's quarters of 125 sq m each, electricaldistribution lines, water supply system, and rehabilitation and upgrading ofexisting buildings, as required.

Cirebon-Rentang Irrigation System Detailed Design

35. Construction of tertiary irrigation systems for the 88,000 haCirebon Subproject and for the 92,000 ha Rentang Subproject was includedin Loan 1100-IND. It was anticipated that PROSIDA would design and lay outthe systems and construct the canal structures, but that the farmers wouldexcavate the canals and drains and construct the embankments under an aidedself-help program.

36. Under Loan 1100-IND financial assistance was provided for construc-tion of the works but no assistance was provided for design and layout. GOIhas now realized that the central and subproject design staff of PROSIDA havea capability to design and provide construction drawings for an area of onlyabout 25,000 ha within the projected timetable for construction.

37. This portion of the project would assist in financing local consul-tants to carry out the design and preparation of construction drawings forthe remaining 155,000 ha in the Cirebon and Rentang systems. Similar assis-tance was provided in Loan 1268-IND for 100,000 ha of tertiary systems.An increasing number of qualified local consultants have the capability toperform this work and keep the tertiary construction program on schedule.

Mapping

38. The status of mapping in Indonesia has improved steadily during theperiod in which Bank assistance for irrigation development has been available.Unfortunately, however, most of the mapping has been accomplished on a site-specific crash basis to meet immediate and urgent needs (Table 6). On many

ANNEX 4Page 10

existing and ongoing PROSIDA-managed projects, the lack of adequate largescale maps significantly hinders comprehensive project-wide planning, design,construction, operation, and maintenance of irrigation systems, especially atthe tertiary and quaternary levels.

39. To correct this deficiency, and in anticipation of the constructionof tertiary and quaternary irrigation systems, including drains, on allirrigation projects under PROSIDA management, the Government has requestedBank assistance under the proposed project in ca[rrying out the remainingmapping on the service areas of all PROSIDA systems./l This would involveaerial photography of about 380,000 ha, production of rectified photomosaicsfor about 450,000 ha, and contour mapping on about 800,000 ha. Aerialphotography will be at a scale of 1:10,000, and rectified photomosaics willbe produced at a scale of 1:5,000. Contour mapping will also be at a scale of1:5,000 with a contour interval of 0.5 m.

Records Depository and Retrieval System

40. PROSIDA is currently implementing five Bank Group-assisted projects.Because of urgency, many of the projects were initiated without fully develop-ing within PROSIDA the capability to effectively handle some of the mushroom-ing administrative and supporting services that compounded with each succes-sive project. Notable among these deficiences aLre the absence of a textprocessing system and a sound, systematic and coordinated methodology andapparatus for filing, correlating, cross-referencing and retrieving thevoluminous reports, records and other documents that not only precede butincrease in number following execution of a Bank loan or credit. AlthoughPROSIDA has up to now managed to maintain reasonable order of these pyramid-ing records with minimal staff, it has become obvious that the workload andquantity of materials that must be maintained for record purposes and beavailable for prompt retrieval is reaching unmanageable proportions.

41. The Records Depository and Retrieval System is intended to achievesystematic storage and retrieval of the more than 100,000 documents, drawings,records, etc. that have accumulated thus far on Bank assisted work as well asto accommodate the continuing influx of similar materials that are coming inat a rate in excess of 10,000 annually. The text processing and typingsystem would enable PROSIDA to cope with the increasing number of contractdocuments and reports that it has to produce.

42. Included in this portion of the project is construction of a 50 sq mclimate-controlled building at the DGWRD compound in Jakarta; procurement oftext processing and typing equipment, microfilm or microfiche equipment fordrawings and documents, reader/printer for reproduction of stored material,and film storage equipment, technical assistance for system development;and overseas and local training of staff in text processing and recordsmanagement.

/1 Including the SEDEKU irrigation system to be rehabilitated by PROSIDAunder the Irrigation IX project, for which a US$35 million loan wasconcurrently negotiated with this project.

ANNEX 4Table 1

INDONESIA

IRRIGATION PROJECT VIII

Madiun Rehabilitation, Stage I, Details of Areas

Irrigated Area, haIrrigation Service Unit Tech- Semi- Non

Area No. Name nical Tech. Tech. Total

Ngawi 16 Pilang Bango 574 - - 57417 Brendil 264 - - 264

18 Semen Kali Buntung 187 - - 187

19 Andong Bawah 3,433 - - 3,433

20 Ketonggo Bawah 2,009 - - 2,009

20a Ketonggo Atas 1,004 1,223 96 2,323Barat 21 Gandong 6,680 1,619 - 8,299

21a Gandong Kerik 847 - - 847

22 Tinil Bawah 4,011 - - 4,01125 Sumber Gareng Gareng - 417 - 417

27 Kuluhan Bawah 1,392 - 1,069 2,46176 Madiun Canal 11,669 15 62 11,74676a Guyung 978 - 239 1,21776b Tejo 556 - - 556

77 Pancur - - 144 14478 Jungke 951 - - 951

Ponorogo 34 Cemer Bawah 836 - 440 1,27634a Cemer Atas 1,570 645 1,886 4,10139 Slahung 2,336 69 926 3,33143 Sungkur 1,286 3,241 646 5,17344 Galok Bawah 329 - 2,331 2,660

Pono & Madiun 33 Asin Bawah 6,953 - - 6,953

Madiun 51 Batil Bawah 1,201 - - 1,201

55 Brangkal Bawah 1,193 - - 1,19356 Catur Bawah 5,055 - - 5,05570 Notopuro 5,128 - - 5,128

Total 60,442 7,229 7,839 75,510

INDONESIA

IRRIGATION PROJECT VIII

Madiun Rehabilitation, Stage I, Inventory of Works

Canal Length, km Structures, NumberIrrigation Service Unit Primary Secondary Headworks Turnouts Bridges Other /aArea No. Name E R E R E R E R E R E R

Ngawi 16 Pilangbango - 0.7 0.5 2.1 2.1 1 1 7 7 6 3 4 317 Brendil - - 0.7 0.7 1 1 2 2 - - 1 -

18 Semen Kali Buntung - - 0.3 0.3 1 1 1 1 - - 1 119 Andong Bawah 5.5 5.5 23.2 23.2 2 1 21 10 2 - 24 320 Ketonggo Bawah 4.7 1.4 13.0 11.0 3 1 13 9 28 1 14 720a Ketonggo Atas - - 3.8 3.8 35 28 19 19 1 - 17 5

Barat 21 Gandong 4.2 4.2 60.3 27.0 70 50 48 43 8 7 196 16321a Gandong Kerik - - 4.8 4.8 2 2 8 8 14 14 9 722 Tinil Bawah 6.6 6.5 23.0 15.4 5 5 30 27 10 9 118 10825 Sumber Gorang Gareng - - - - 5 0 - - - - 5 527 Kuluhan Bawah - - 3.2 1.3 3 3 5 5 - - 1 176 Madiun Kanal 26.3 26.3 59.5 59.5 13 10 70 65 53 24 77 5676a Guyung 3.5 3.5 4.9 4.0 2 1 7 7 7 7 7 776b Tejo 1.4 1.4 4.6 4.6 1 1 7 7 6 6 7 777 Pancur - - - - 6 0 - - - - 2 278 Jungke 1.3 1.3 4.8 4.8 1 1 9 9 1 1 14 5

Ponorogo 34 Cemer Bawah - - 2.4 2.4 10 0 3 1 2 - 10 734a Cemer Atas 4e1 4=1 37=1 25o8 37 31 40 34 1 - 12 639 Slahung 1.0 1.0 3.6 0.6 42 41 11 2 4 - 24 1443 Sungkur 4.7 4.7 19.8 19.6 9 8 51 48 3 2 3 344 Galok Bawah - - 14.7 14.7 7 7 22 22 2 2 7 7

Pono. & Madiun 33 Asin Bawah 7.2 5.2 56.9 49.6 5 3 61 53 72 35 110 67Madiun 51 Batil Bawah - - 6.5 5.7 10 6 9 6 13 4 21 6

55 Brangkal Bawah 3.5 2.7 6.7 6.4 1 1 11 11 7 6 28 1656 Catur Bawah 11.7 10.0 37.2 28.3 8 8 55 30 53 24 78 3870 Notopuro 7.1 7.1 38.7 38.7 5 5 68 67 20 - 33 2

Total 93.5 85.4 431.8 354.3 285 216 578 493 313 145 823 546

.." XE; Existing N 4R: To be rehabilitated

/a Checks, drops, gates, siphons, wasteways, steplandings and buffalo wallows.

ANNEX 4Table 3Page 1

INDONESIA

IRRIGATION VIII

Work Items, Quantities and Unit Prices

Item Quantity Unit Unit Price /a(Rp)

I. Madiun Rehabilitation (Stage I)

Housing for O&M staff 15,725 sq m 50,000

Inspection and access roads 450 km 3,100,000

Headworks and weirs /b 213 each 17,500,000

Primary and secondary canalsEarthwork 3,000,000 cu m 550Masonry lining 260,000 sq m 5,700

Canal structures 920 ea 5,000,000

Drainage canals & structures L.S. - 250,000,000

Telephone communications 338 km 735,000

Tertiary systems 30,000 ha 81,500

Land acquisition 250 ha 2,000,000

II. Groundwater Pilot Project

Drilling, installing casing anddeveloping wells /c 30 ea. 6,920,000

Pumphouses /d 33 ea 3,770,000

Irrigation and drainage canalsExcavation 25,000 cu m 560Fill 10,000 cu m 470Lining 5,000 sq m 140

Irrigation and drainage structures 15 each 100,000

Inspection and access roadsRehabilitation 15 km 5,054,700New 3.5 km 7,209,000

ANNEX 4Table 3Page 2

Item Quantity Unit Unit Price /a(Rp)

III. Ciujung Drainage

Drainage structuresControl structures, I bay 14 ea 21,000,000

2 bays 9 ea 32,000,000Diversion weirs, 3 bays 6 ea 16,000,000Box culverts, 2-8 barrels 21 ea 6,000,000Pipe drains, 50 cm 0 91 ea 1,600,000Check dikes 6 ea 20,000,000

Primary and secondary drainsPrimary drains (by equipment 96,000 cu m 420Secondary drains (by equipment) 1,400,000 cu m 450Secondary drains (by hand labor) 1,400,000 cu m 560

River earthwork 125,000 cu m 420

Roads and bridgesBituminuous road surfacing /e 5 km 42,000,000Gravel surfacing 50 km 2,000,000Bridges 5 ea 33,000,000

Land acquisition 350 ha 1,700,000

IV. Audio-visual Training Center

Office, clas-sroom and reproductioncenter 1,000 sq m 80,000

Dormitory for 120 trainees 1,800 sq m 80,000Earthfill for compound 64,000 cu m 1,000Housing for staff (8 units) 1,000 sq m 70,000Garage for 10 cars 150 sq m 40,000Internal roads and drainage L.S. - 30,000,000Masonry fence 1,600 sq m 5,000Emergency generating set (10 KVA)and foundation L.S. - 10,000,000

Transformer, 25 KVA L.S. - 18,000,000Water supply system, includingdeepwell and pump L.',. - 23,000,000

Finishing and landscaping 40,000 sq m 500Reconditioning existing classrooms 400 sq m 5,000Land acquisition 20,0()0 sq m 10,000

For footnotes, see p. 3.

ANNEX 4Table 3Page 3

/a Not including engineering, administration and overhead (7%), vehiclesand equipment, physical contingencies (25%) and price contingencies.

lb Includes desilting basins.

/c Including installation of pumps and diesel engines.

/d Including foundation for diesel engines.

/e Includes sub-base, base, bituminous surface, shoulders, and sidedrains.

ANNEX 4Table 4

INDONESIA

IRRIGATION VIII

Project Development Costs

Description US$/ha /a US$/family

I. Madiun Rehabilitation (Stage I)

Housing & inspection & access roads 90Headworks and weirs 154Primary and secondary canals 315Drainage works 10Communications 10Tertiary works /b 250Land acquisition 20

Total 849 /c 430

II. Groundwater Pilot Project

Inspection & access roads 148Tubewells and pumphouses 588Turbine pumps & diesel engines 520Irrigation & drainage network 50

Total 1,306 650

III. Ciujung Drainage

Drainage structures 594Primary and secondary drains 754River earthwork 23Inspection & access roads 182Bridges 91Land acquisition 320

Total 1,964 980

/a Not including price contingencies (26% of base cost plus physicalcontingencies) and engineering, supervision and administration (10%).

lb Based on 30,000 ha.

/c For systems with tertiaries only; for those without tertiaries,rehabilitation cost would be US$599/ha.

ANNEX 4Table 5Page 1

INDONESIA

IRRIGATION VIII

Vehicles, Equipment and Materials /a

Unit Cost AmountItem Quantity - … (US$) -------

I. Madiun Rehabilitation

VehiclesJeeps 15 7,000 105,000Pick-ups 5 10,000 50,000Motorcycles 81 500 40,500Bicycles 280 50 14,000

Subtotal 209,500

Construction and Maintenance EquipmentDragline (3/4 cu yd) & mats 2 75,000 150,000Backhoe (1 cu yd) 1 75,000 75,000Dredge (8 in), pipes & pontoons 1 250,000 250,000Road rollers, 3.5 tons 4 30,000 120,000Hand rollers 8 7,500 60,000Truck cranes, 3 tons 2 30,000 60,000Tamping rammers, 80 kg 8 10,000 80,000Tamping plates, 80 kg 8 10,000 80,000Portable concrete mixer, 0.2 cu m 8 7,500 60,0004 in 0 Water pumps & engine, 12 hp 8 5,000 40,0003 in 0 Water pumps & engine, 8 hp 8 4,000 32,0002 in 0 Water pumps & engine, 6 hp 8 3,000 24,000Photocopier 1 7,500 7,500Workshop equipment, set 1 Lot 100,000

Subtotal 1,138,500

Instruments & ToolsTheodolites & tripod 4 2,500 10,000Levels & tripod 4 500 2,000Current meters 4 1,500 6,000Stationary equipment 4 Lot 10,000Small tools, sets 4 Lot 10,000

Subtotal 38,000

Total 1,386,000

ANNEX 4Table 5Page 2

Unit Cost AmountItem Quantity …------ (US$) -- …----

II. Groundwater Pilot Project

Pilot Areas

Wells and pumps450 mm 0 casing 39 m 154 6,000300 mm 0 casing 1,326 m 74 98,000200 mm 0 casing 2,082 m 40 83,000200 mm 0 screens 1,146 m 179 205,000Turbine pumps with diesel engines 37 32,000 1,184,000Spare parts Lot - 140,000

Subtotal 1,716,000

VehiclesFuel tank truck, 2,000 1 cap. 2 15,000 30,000Jeeps 5 7,000 35,000Station wagons 1 10,000 10,000Executive vehicles 2 15,000 30,000

Office equipment Lot - 18,000

Hydro & geohydrologic equipment Lot - 50,000

Topographic survey equipment Lot - 6,000

Misc. equipment and spare parts Lot - 27,000

Subtotal 206,000

Subtotal, Pilot Areas 1,922,000

Study Area

VehiclesJeeps 3 7,000 21,000Motorcycles 10 500 5,000Bicycles 30 50 1,500

Turbine pumps with diesel engines 7 32,000 224,000

Spare parts Lot - 25,000

Subtotal, Study Area 276,500

Total 2,198,500

ANNEX 4Table 5Page 3

Unit Cost AmountItem Quantity ------ (US$) ------

III. Ciujung Drainage

VehiclesPick ups 2 10,000 20,000Four-wheel drive 4 7,000 28,000Motorcycles 15 625 7,500

Subtotal 55,500

Hydrological equipmentWater balance equipment Lot - 62,800Water level recorders, various 4 1,100 4,400Boat (20 hp) 2 3,000 6,000Boats (10 hp) 1 1,800 1,800

Subtotal 75,000

Total 130,500

IV. Records Depository and Retrieval System

Microfilmer for engineering drawings 1 30,000 30,000Reader for engineering drawings 1 6,000 6,000Microfilmer for documents 1 7,000 7,000Reader/printer for documents 1 6,000 6,000Storage cabinets Lot - 5,000Film stock (5 years operation) Lot - 4,000Air conditioners and other accessories Lot - 10,000Text processing system 2 45,000 90,000

Total 156,000

V. Audio-Visual Equipment

Photography, film and studio equipment35 mm still camera with accessories 2 3,000 6,00016 mm movie camera with sound syn-

chronizing system and tape recorder 1 20,000 20,00016 mm movie camera with zoom lens 1 7,000 7,000Slide projectors with lenses 2 900 1,800Dissolve control 1 1,800 1,800Program control 1 2,400 2,400Tape synchrocoder 1 500 500Movie projector, optic and magnetic

playback 2 3,300 6,600

ANNEX 4Table 5Page 4

Unit Cost AmountItem Quantity -- (US$) ------

Turntable 1 1,500 1,500Reel deck 1 1,750 1,750Sound mixer 1 4,000 4,000Preamplifier 1 1,500 1,500Microphone and boom 2 375 750Cassette reproduction machine 1 6,600 6,600Sound system 3 400 1,200Editing equipment for slides and film L.S. - 6,200Study carrel equipment 6 10,000 60,000Air conditioning system L.S. - 33,900Electrical lighting equipment andaccessories L.S. - 9,500

Subtotal 173,000

VCR production. center equipmentCamera and control equipment 3 8,933 26,800Video cassettes (synchronized,editing and duplication) 2 8,675 17,350

VCR color monitors 4 1,475 5,900Video audio distributor for CCTV use 1 1,900 1,900Intercommunication headsets 6 88 530Video outdoor camera (field operation) 2 6,500 13,000Video cassette (field operation) 1 4,500 4,500Special effects generator and multi--signals generator 1 5,640 5,640

Production accessories L.S. - 10,380Slide duplication machine 1 20,000 20,000

Subtotal 106,000

Production Center MaterialsFor slide/tapes production (100 programs)L.S. - 178,000For movie film production (12 programs) L.S. - 18,000For VCR production (8 programs) L.S. - 36,000

Subtotal 232,000

Provincial Training Center Equipment (26 Provinces)Videocassette and video monitor 26 3,450 89,700Movie projector 26 1,896 49,300

Subtotal 139,000

Total 650,000

Grand Total 4,521,000

/a Equipment to be procured under the proJect would be augmented by thosepurchased under earlier credits for subprojects that have been completed,or are nearing completion.

INDONESIA

IRRIGATION VIII

Inventory of Maps on PROSIDA's Systems

I Service I Aerial Photographs, 1:10,000 | Photo Maps, 1:5,000 | Contour Maps, 1:5,000

Subproject | Area | Total Completed Balance | Total Completed Balance | Total Completed Balance

(Ha) (Ha) (Ha) (Ha) I (Ha) (Ha) (Ha) | (Ha) (Ha) (Ha)

Credit 127-INDWay Seputih | 25,000 - - -_- -_ _ 57,000 57,000 -

Cisedane f 42,000 1 70,000 70,000 - | 70,000 70,000 - | 70,000 34,000 36,000La

Rentang | 92,000 I 165,000 165,000 - 165,000 165,000 - | 165,000 165,000 -

Glapan-Sedadi I 47,400 I 105,000 105,000 - I - -_ _ 105,000 78,600 2 6

,400/a I

Credit 220-IND |

Ciujung I 24,300 I 65,800 65,800 - | 65,800 65,800 - I 65,800 - 65,800/b

Pemali-Comal 1 123,000 I 575,000 375,000 200,000 I 261,000 76,000 185,0001bl 250,000 - 250,000

Sadang I 54,600 I 115,300 115,300 - 92,000 92,000 - j 92,000 72,000 20,000

Credit 289-INDPekalen-Sampean I 229,000 I 535,000 135,000 400,000/a | 430,000 30,000 400,000 | 430,000 30,000 400,000

Sampean Baru | 9,800 90,000 60,000 30,000 | 35,000 35,000 - | 35,000 35,000 -

Loan 1100-INDCirebon I 88,000 I 335,000 335,000 - I 212,000 132,400 79,600Lal 212,000 113,000 99,000

Madiun | 140,000 410,000 310,000 100,000 350,000 310,000 40,000 | 350,000 - 350,000Lc I

Total 1 875,100 12,466,100 1,736,100 730,000 11,680,800 976,200 704,600 | 1,831,800 584,600 1,247,200

_ _ _ _ _ _ _ I _ _ _ _ I I__ _ _ _ _ _ _ _ _ _ I__ _ _ _ _ _ _ _ _ I__ _ _ _ _ _ _ _ _ _ _

/a In progress under Loan 1100-IND.

/b In progress under Loan 1268-IND. a >

/c 160,000 ha in progress under Loan 1268-IND.

INDONESIA

IRRIGATION VIII

IBRD Assistance for Mapping on PROSIDA's Systems

Subproject Item Loan 1100-IND Loan 1268-IND Irrigation VIII(Ha) (US$)/a (Ha) (US$)/a (Ha) (USS)/a

Credit 127-INDCisedane Contour Maps 36,500 143,000/b - -

Glapan-Sedadi Contour Maps 26,400 81,000/b - -

Credit 220-INDCiujung Contour Maps - - 65,800 190,000/c - -Pemali-Comal Aerial Photographs - - - - 200,000 96,000

Photo Maps - - 185,000 428,000/c - -Contour Maps - - - - 250,000 720,000

Sadang Contour Maps - - - 20,000 57,760

Credit 289-INDPekalen-Sampean Aerial Photographs 400,000 146,000/b - - - -

Photo Maps - - - - 400.000 924,850Contour Maps - - - - 400,000 1,155,200

Loan 1100-INDCirebon Photo Maps 79,600 124,000/b - - - -

Contour Maps - - - - 98,900 284,623Madiun Aerial Photographs 310,000 497,000/ 100,000 48,000

Photo Maps 150,000 160,000 370,000/c - -Contour Maps - - 350,000 1,010,800/d - -

SEDEKU /f Aerial photo 80,000 48,000Photo maps 50,000 144,500Contour maps 30,000 108,300

Total 991,000/b 1,999,000 3,587,000

Loan Amount 1,000,000 2,000,000 3,600,000/e

/a Based on disbursement percentage of 80% of total cost.

/b In progress. Contracts awarded under Loan 1100-IND.

/c Tenders issued but not yet awarded.

/d Tender not yet issued.

/e To be provided under Irrigation VIII. Total cost of mapping under Irrigation VIII is based on Rp 250/ha for aerial photo-graphs; Rp 1,200/ha for photo maps; and Rp 1,500/ha for contour maps.

/f An irrigation system to be financed under a loan for the Irrigation IX project, which would be negotiated concurrently withthe proposed project.

ANNEX 5Page 1

INDONESIA

IRRIGATION VIII

Water Supply, Demand and Quality

Madiun Rehabilitation

1. The principal water supply for the 140,000 ha Madiun irrigationsystem is derived from the streamflow of the Madiun and Solo rivers andtheir numerous tributaries, which have a combined catchment area of about9,770 sq km. This supply is augmented by groundwater and the discharge fromnumerous springs in the area. Except for seven small reservoirs (two on-stream and five off-stream, supplied by diversion canals) that regulate theflood flows of five tributaries, the principal water supply is unregulated.The run-of-river flows considerably exceed the wet season supplementalirrigation needs, but they are fully utilized in the dry season. Since theexisting system contains as many as two to four headworks and intakes on thesame stream, the return flows from the upper service units are also fullyutilized. Because of the efficient utilization of return flows, the Madiunirrigation system is capable of sustaining a cropping intensity of about208% (113% paddy and 95% sugarcane and palawija). Under the project, noadditional supplies would be developed but, compared to the prevailingsituation (Annex 4), the rehabilitation and improvement of existing struc-tures is expected to bring about a more timely delivery of water and a moreequitable sharing of available supplies, as well as shortages. These improve-ments would result from the reduction of losses at diversion points, incanals, and through spillage; greater conveyance capacity; and better area-wide and local water control.

2. The Madiun irrigation system is so complex that it precludes, underpresent circumstances, precise analysis of the water supply available to eachof the 117 distinct systems in the 140,000 ha network. However, long-termrecords on the two main rivers, extensive precipitation data, and numerousirrigation diversion records make the calculation of available supplies pos-sible on a zone-by-zone basis. To this end, the entire service area wasdivided into five water supply zones, based on the geographic location ofthe water sources and the interconnected service units supplied by them. Thecalculated dependable water supply, by zones, is summarized in Table 1.

3. Water requirements of wet- and dry-season paddy, sugarcane andpalawija were based on the crop calendar in Chart 16987 and the basic datasummarized in Table 2. For irrigated paddy, percolation was taken at 1.0 mm/day, area of nursery beds was estimated at 5% of the paddy field area, andpuddling water requirement for nursery beds was calculated at 150 mm and forpaddy fields at 200 mm (100 mm for soil saturation plus 100 mm for maintain-ing a water layer). Flooding immediately after, and for the two-week periodfollowing transplanting, was estimated to be 60 mm. Subsequent water appli-cations to compensate for evapotranspiration were based on the recommendations

ANNEX 5Page 2

contained in the paper "Computation of Irrigation Water Requirements for WetSawah Paddy," which was prepared by PROSIDA in 1973 with consultant assistance(NEDECO), and is considered to contain the most up-to-date data applicable toIndonesia. Potential evapotranspiration rates were calculated by the Penmanformula, using a reflection coefficient (albedo) of 0.25 and meteorologicaldata compiled in Madiun. These rates were modifi'ed by multiplying them withthe appropriate coefficients for paddy, sugarcane and palawija to obtainevapotranspiration rates for these crops at various stages of their growth.The dependable rainfall was taken as the rainfall equalled or exceeded in fouryears out of five and, because of its nonuniformity, the 140,000 ha servicearea was divided into four precipitation zones (Table 2). Zoning for purposesof precipitation analyses was based on the geographic location of 29 selectedrain gauges, all of which have 25 concurrent years of record (1951-1975),allowing computation of areal rainfall for each zone by the Thiessen method.The effective rainfall was calculated by applying the following criteria tothe dependable rainfall determined for each zone: (a) 80% of daily rainfallranging from 5 to 80 mm is effective; (b) for daily rainfall over 80 mm,only 80 mm is considered effective; and (c) in no case should computed effec-tive rainfall for any period exceed the sum of evapotranspiration and perco-lation for the same period. The results obtained by adopting the above cri-teria have been verified to be within 10% of the values obtained by making aday-to-day analysis of five years of continuous precipitation records, takinginto account the pondage which paddy can tolerate at various growth stages.

4. The monthly net crop water requirement for each precipitation zone,as computed on the above basis, is summarized in Table 4. It is expressed inmm and is equal to the sum of all required water applications less effectiverainfall. Finally, the monthly diversion requirement was calculated for eachwater supply zone to complete the water balance study (Table 5). The diver-sion requirement takes into account the cropped area and stage of crop growth,and includes an allowance of 15% for field application losses, exclusive ofpercolation losses, and 30% for conveyance losses (about 60% overall irriga-tion efficiency). Shortages in supply occur in June, July and September andare generally below 20% for Zones I, III and IV. In Zones II and V, shortagesare not as damaging as they might at first appear since they are based uponthe water supply available in four years out five, they can be lessened byincreasing the use of groundwater, and the affected crops are the moredrought-resistant palawija crops.

Madiun-Solo Groundwater Pilot Project

5. Investigations. The adequacy of the water supply projected for thepilot project is in this case dependent upon the geohydrology of the pilotareas. In the course of groundwater investigations undertaken by consultants(ELC-NK) in the area since November 1972, the tectonic structure, geologicalhistory, lithology, aquifer system and characteristics, recharge and dischargecapabilities and water quality have al:L been examiined and analyzed. A reviewof existing literature was conducted and more than 250 existing dug wellswere monitored, (85 on a monthly basis and 5 equipped with automatic dailywater recorders). Six test holes and 12 test wells totaling 3,700 m in depthhave been drilled to maximum depths of 350 m. Eight of the test wells have

ANNEX 5Page 3

been pump-tested to date. A total of 44 shallow exploratory wells were con-structed and pump tested, and during 1977, 3 additional test holes and 55 t_Stwells totaling 1,500 m in depth would be drilled. About 110 geoelectric logs(including 2,000 m of Schlumberger) were conducted and interpreted to depthsof 400 meters on project constructed wells and test holes, and 18 soundings(including 500 m of Schlumberger logs) were obtained for selected dug andbore holes.

6. Present Groundwater Utilization. Most of the towns and villagesin the project area obtain their domestic water supply from dug wells.These wells are commonly brick-lined, protected by a parapet wall and 005 to1.5 m in diameter. Well depths depend upon the depth to the water tableduring the driest months of the dry season (September-October), with thedeepest of the more than 250 surveyed, extending 35.5 m below ground surface.Table 5 summarizes the current (1975-76) use of groundwater in the projectarea.

7. Aquifer System. The four generalized groundwater systems idsrlzi-lsin the project area include: (a) a phreatic aquifer present througnout theproject area, which occurs in alluvial and terrace deposits (Holocene andupper Pleistocene epochs); (b) a shallow (10-70 m depth) artesian aquiferjust underlying the phreatic zone and incompletely separated from it (upperand middle Pleistocene epochs); (c) a mid-depth artesian aquifer known as theKabuh Beds, which lie 30-100 m below ground level and whose maximum thicknessis about 150 m (middle Plistocene epoch); and (d) a deep artesian aquiferknown as the Puncangan Beds (lower Pleistocene Epoch), which lie 80 to 275 mbelow ground surface. The thickness of the Puncangan Beds is indetermirate,as no drilled hole has yet entirely penetrated them.

8. The quality of the underground water ranges from good to excellentfor irrigation purposes in all but the Puncangan beds. It has a low sodiumabsorption ratio (SAR), low to medium salinity hazard and is slightly alkaline9Conductivity ranges from about 200-750 micromhos per centimeter (mmhos/cem)hardness as calcium carbonate is low to moderate, and the water is slightlyalkaline. In the Puncangan beds, only two samples were analyzed for chemicalcomposition. These waters were slightly alkaline, of low to moderate hardnessmoderate SAR and with electrical conductivity of 600-900 mmhos/cm.i The water

is considered suitable for irrigation under normal conditions. Additionalchemical analyses will be made in the course of continuing investigations.

9. Based on investigations and analyses made thus far, there is nodoubt that the groundwater supplies in the project area are more than adeqtuaLeto supply the projected use for the three pilot areas on a sustained basis.Preliminary estimates indicate that about 30,000 ha could be irrigated fromgroundwater in the project area.

10. The crop calendar and water requirements for the three area schemesincluded in the groundwater pilot project are based upon climatologic andagronomic data utilized for the Madiun Rehabilitation Subproject. The avail-able water supplies for the Balong and Caruban areas are those availabLe fromthe surface water supply system from which they are currently served. There

ANNEX 5Page 4

is no surface water supply from the Tanon area. The project water require-ment to be supplied from groundwater is the difference between the calculateddiversion requirement and the available surface supply.

11. The water balances for the technically and semitechnically irri-gated portions of the Balong area are shown on Charts 16988 and 16989,respectively. Chart 16990 presents similar informnation for the rainfed Tanonarea, and Chart 17144 for the fully technically irrigated Caruban area.

ANNEX 5Table 1

INDONESIAIRRIGATION VIII

MADIUN REHABILITATION

Dependable Project Water Supply /a

Water Supply May June July Aug. Sept. Oct.Zones ------------------- cu m/sec -----------------------

Zone "I" (52,590 ha) /bSurface water 11.0 8.8 6.9 5.9 5.1 5.7Phreatic water - -Artesian water - - - - - -

Total 11.0 8.8 6.9 5.9 5.1 5.7

Zone "II" (26,860 ha)Surface water 1.42 0.88 0.62 0.52 0.43 0.52Phreatic water - - - - - -Artesian water 0.16 0.16 0.16 0.16 0.16 0.16

Total 1.58 1.04 0.78 0.68 0.59 0.68

Zone "III" (120,970 ha)Surface water 29.88 18.91 13.64 10.52 9.83 12.38Phreatic water - - - - -

Artesian water 0.17 0.17 0.17 0.17 0.17 0.17

Total 30.05 19.08 13.81 10.69 10.00 12.55

Zone "IV" (76,770 ha)Surface water 8.82 6.87 5.37 4.55 4.21 4.38Phreatic water - - - - - -

Artesian water - - - - - -

Total 8.82 6.87 5.37 4.55 4.21 4.38

Zone "V" (12,210 ha)Surface water 0.64 0.33 0.20 0.12 0.08 0.09Phreatic water 0.13 0.13 0.13 0.13 0.13 0.13Artesian water - - - - - -

Total 0.77 0.46 0.33 0.25 0.21 0.22

Entire ProjectSurface water 51.76 35.79 26.73 21.61 19.65 23.07Phreatic water 0.13 0.13 0.13 0.13 0.13 0.13Artesian water 0.33 0.33 0.33 0.33 0.33 0.33

Total 52.22 36.25 27.19 22.07 20.11 23.53

/a Equaled or exceeded in four years out of five./b See Table 3.

ANNEX 5Table 2

INDONESIAIRRIGATION VIII

MADIUN IRRIGATION SYSTEH

Basic Data for Water Balance Study /a

Jan Feb Mar Apr Nay Jun Jul Aug Sep Oct Nov Dec

Potential Evapotranspiration /b, mm/day 5.58 5.76 5.61 5.73 5.28 5.80 6.72 7.39 8.56 8.24 6.87 5.98Crop Coefficients:

Wet-season paddy 1.30 1.24 1.12 1.00 - - - - - 1.00 1.09 1.20Dry-season paddy - 1.00 1.09 1.28 1.34 1.16 1.00 0.31 0.36 0.46 0.64 0.83Sugarcane - - - 0.30 0.30 0.30 - - - - -

Sugarcan 0.98 1.08 1.09 1.08 1.05 1.03 1.03 1.00 - - - -Palawija I - - 0.15 0.20 0.26 0.28 0.26 - - - - -Pilawija II - - - - - 0.15 0.20 0.26 0.28 0.27 - -

Evapotranspiration, mr/dayWet-season paddy 7.3 7.1 6.3 5.7 - - - - - 8.2 7.5 7.2Dry-season paddy - 5.8 6.1 7.3 7.1 6.7 6.7 - - - - -Sugarcane - - - - 1.6 1.7 2.0 2.3 3.1 3.8 4.4 5.0

5.5 6.2 6.1 6.2 5.5 6.0 6.9 7.4 - - - -

Palawija I - - 0.8 1.1 1.4 1.6 1.7 - - - - -Palawija II - - - - - 0.9 1.3 1.9 2.4 2.2 - -

Dependable Rainfall /c, mmZone A /d 280 284 292 196 133 57 55 37 45 118 208 253Zone B 207 209 214 150 106 30 30 15 18 60 129 195Zone C 230 232 238 166 117 44 34 17 20 67 143 217Zone D 219 220 226 158 111 42 32 16 19 64 136 206

Effective Rainfall /e, mmZone A 224 227 234 157 106 46 44 30 36 94 166 202Zone B 166 167 171 120 85 24 24 12 14 48 103 156Zone C 184 186 190 133 94 35 27 14 16 54 144 174Zone D 175 176 181 126 89 34 26 13 15 51 109 165

/a Projected crop calendar used in the study is presented in Chart 16987; percolation is taken at 1.0 mm/day; area of nurserybeds is estimated at 5% of total paddy field area; puddling water requirement for nursery beds is calcuated at 150 mm andfor paddy fields at 200 mm (100 uam for soil saturation and 100 mm for maintaining water layer); pondage of 60 mm is builtup over a 2-week period following transplanting; conveyance efficiency is estimated at 70% and field application effi-ciency at 85%, for an overall irrigation efficiency of 60%.

/b Calculated by the Penman formula using a reflection coefficient (albedo) of 0.25 for cut grass, which has been shown to bethe most appropriate for Indonesia (see PROSIDA paper prepared with consultant assistance (NEDECO) entitled "Computationof Irrigation Water Requirement for Wet Sawah Paddy", Jakarta, September 1973).

/c Rainfall equaled or exceeded in four years out of five based on the 25-year period from 1951 to 1975.

/d Precipitation Zones based on geographic distribution of 29 selected rain gauges over the entire project area, allowingcomputation of areal rainfall for each zone by the Thiessen method. Included in Zone A are service units numbered 1-20and 20a; Zone B, No. 70-79; Zone D, No. 37-42; Zone C, all remaining unit; not in Zones A, B and C.

/e Based on the criteria that 80% of daily rainfall ranging from 5 to 80 mm is effective, and for daily rainfall over 80 mm,only 80 mm is considered effective. In no case, however, should effective rainfall exceed the sum of evapotranspirationand percolation.

ANNEX 5Table 3

INDONESIAIRRIGATION VIII

MADIUN REHABILITATION

Cropping Patterns /a by Precipitation and Water Supply Zones

Madiun System - 140,000 ha

Precipitation Water Supply Zones /c

Zones /b Zone "I" Zone "II" Zone "III" Zone "IV" Zone "V" Total

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

Zone "A" (33,500 ha)Wet-season paddy 25,900 170 4,940 490 - 31,500

Dry-season paddy 10,870 80 3,260 290 - 14,500

Sugarcane 1,060 10 200 30 - 1,300

Palawija I 8,260 50 1,580 160 - 10,050

Palawija II 5,210 40 990 110 - 6,350

Subtotal 51,300 350 10,970 1,080 - 63,700

Zone "B" (55,400 ha)Wet-season paddy - 12,940 3,290 29,050 6,320 51,600

Dry-season paddy - 1,430 360 3,210 700 5,700

Sugarcane - 180 50 390 80 700

Palawija I - 9,140 2,320 27,190 4,470 43,120

Palawija II - 2,820 1,740 15,280 640 20,480

Subtotal - 26,510 7,760 75,120 12,210 121,600

Zone "C" (26,300 ha)Wet-season paddy 550 - 19,650 - - 20,200

Dry-season paddy 280 - 9,920 - - 10,200

Sugarcane 160 - 5,540 - - 5,700

Palawija I 100 - 3,450 - - 3,550

Palawija II 200 - 6,850 - - 7,050

Subtotal 1,290 - 45,410 - - 46,700

Zone "D" (25,700 ha)Wet-season paddy - - 19,800 200 - 20,000

Dry-season paddy - - 3,960 40 - 4,000

Sugarcane - - 5,150 50 - 5,200

Palawija I - - 11,190 120 - 11,310

Palawija II - - 16,730 160 - 16,890

Subtotal - - 56,830 570 - 57,400

Total (140,900 ha)Wet-season paddy 26,450 13,110 47,680 29,740 6,320 123,300Dry-season paddy 11,150 1,510 17,500 3,540 700 34,400

Sugarcane 1,220 190 10,940 470 80 12,900Palawija I 8,360 9,190 18,540 27,470 4,470 68,030

Palawija II 5,410 2,860 26,310 15,550 640 50,770

Grand Total 52,590 26,860 120,970 76,770 12,210 289,400

/a Cropped areas shown are averages of actual areas planted in the last 5 yearsin the service units falling within the indicated precipitation and water

supply zones.

/b See footnote /d, Table 1.

/c Based on geographic location of water supply sources and interconnected

service units served by these sources.

ANNEX 5Table 4

INDONESIAIRRIGATION VIII

MADIUN REHABILITATION

Net Crop Water Requirements /a

Precipitation Jan Feb Mar Apr N4ay Jun Jul Aug Sep Oct Nov Dec TotalZones ------- (min) -----------------------------

Zone "A"Wet-season paddy 67 8 - 5 - - - - - 3 78 127 288Dry-season paddy - 3 - 156 140 145 31 - - - - - 475Sugarcane - - - - - 3 16 39 51 23 - - -

29 41 44 13 - - - - - 265PalawijaI - - - - - 3 3 - - - - - 6PalawijalI - - - - - - 2 25 30 - - - 57

Zone "B"Wet-season paddy 119 65 26 10 - - - - - 31 86 150 459Dry-season paddy - 3 145 187 163 160 34 - - - - - 692Sugarcane - - - - - 10 29 57 78 70 31 - -

13 18 62 57 52 16 - - - - - 493Palawija I - - - - - 21 8 - - - - - 29Palawija II - - - - - - 10 40 46 11 - - 107

Zone "C"Wet-season paddy 104 47 16 8 - - - - - 3 86 143 407Dry-season paddy - 3 140 176 153 153 34 - - - - - 659Sugarcane - - - - - 5 29 54 75 60 18 - -

52 49 49 16 - - - - - 407PalawijaI - - - - - 10 8 - - - - - 18PalawijalI - - - - - - 10 38 44 7 - - 99

Zone "D"Wet-season paddy 109 57 23 10 - - - - - 31 86 145 433Dry-season paddy - 3 143 181 156 153 34 - - - - - 670Sugarcane - - - - - 8 29 57 78 62 23 - -

3 8 57 52 49 16 - - - - - 442Palawija I - - - - - 13 8 - - - - - 21PalawijalI - - - - - - 10 40 46 8 - - 104

/a Net irrigation requirement based on basic data in Table 1 and cropping calendar inChart 16987; includes percolation losses, puddling requirement, and flooding aftertransplanting, but excludes field and conveyance losses.

ANNEX 5Table 5

INDONESIAIRRIGATION VIII

HADIUN REHABILITATION

Water Balance Computation la(140,000 ha)

Water Supply Dry SeasonZones May June July , Aug Sept Oct

…-cu /sec - ---- … -… - --

Zone "I" (52,590 ha) lbIrrigation requirement /c

Wet-season paddy - - - - - -

Dry-season paddy 8.59 8.81 1.90 - - -Sugarcane 0.33 0.36 0.22 0.31 0.45 0.18Palawija I - 0.17 0.17 - - -Palavija II - - 0.02 0.89 1.13 -

Total 8.92 9.34 2.31 1.20 1.58 0.44

Available water 11.00 8.80 6.90 5.90 5.10 5.70Balance 2.08 -0.54 4.59 4.70 3.52 5.26

Zone "II" (26.860 ha)Irrigation requirement tb

Wet-season paddy - - - - - 0.13Dry-season paddy 1.33 1.33 0.29 - - -

Sugarcane 0.07 0.07 0.05 0.07 0.10 0.09Palawija I - 1.19 0.46 - - -Palawija II - - 0.20 0.79 0.93 0.15

Total 1.40 2.59 1.00 0.86 1.03 0.37

Available water 1.58 1.04 0.78 0.68 0.59 0.68Balance 0.18 -1.55 -0.22 -0.18 -0.44 0.31

Zone "III" (120,970 ha)Irrigation requirement /b

Wet-season paddy - - - - - 0.48Dry-season paddy 14.53 14.35 3.33 - - -Sugarcane 3.50 3.72 3.06 3.83 5.25 4.16Palawija I - 1.36 0.93 - - -Palawija II - - 1.85 6.57 7.66 1.28

Total 18.03 19.37 9.17 10.39 12.91 5.92

Available water 30.05 19.08 13.81 10.69 10.00 12.55Balance 12.02 -0.29 4.64 0.30 -2.91 6.63

Zone "IV" (76.770 ha)Irrigation requirement lb

Wet-season paddy - - - - - 0.30Dry-season paddy 2.94 2.90 0.67 - - -Sugarcane 0.15 0.16 0.13 0.16 0.22 0.18Palawija I - 1.92 1.37 - - -Palawija II - - 1.09 4.17 4.95 0.47

Total 3.09 4.98 3.26 4.33 5.17 0.95

Available water 8.82 6.87 5.37 4.55 4.21 4.38Balance 5.73 1.89 2.11 0.22 -0.96 3.43

Zone "V" (12,210 ha)Irrigation requirement /b

Wet-season paddy - - - - - 0.06Dry-season paddy 0.60 0.59 0.13 - - -Sugarcane 0.03 0.03 0.02 0.03 0.04 0.03Palawija I - 0.36 0.22 - - -Palawija II - - 0.05 0.18 0.20 0.02

Total 0.63 0.98 0.42 0.21 0.24 0.11

Available water 0.77 0.46 0.33 0.25 0.21 0.22Balance 0.14 -0.52 -0.09 0.04 -0.03 0.11

/a Presented only for dry season since run-of-river supplies are not critical inthe wet season.

/b See Table 2.

ANNEX 5Table 6

INDONESIA

IRRIGATION VIII

Groundwater Abstraction - 1975/76

Groundwater UseAquifer Domestic Irrigation Industry Total

---- Mcm/yr ------------------

Phreatic 36.5 2.0 0 35.2

Artesian 1.6 18.5 7.8 27.9

Total 38.1 20.5 7.8 66.4

------------------ cu m/sec -----------------

Phreatic 1.16 0.06 0 1.22

Artesian 0.05 0.59 0.25 0.89

Total 1.21 0.65 0.25 2.11

ANNEX 6Page 1

INDONESIA

IRRIGATION VIII

Consulting Services

1. Madiun Rehabilitation. In addition to the services of ELC-NK underLoan 1100-IND, the project would provide for an increased scope of servicesby both the above and local consultants. ELC-NK would supply additionalstaff to expedite the design of the first 25,000 ha of rehabilitation, whichare scheduled for execution in the 1977 dry season, carry out feasibilitystudies for the proposed Bendo Dam as a multipurpose development, and providea construction supervision staff. Local consultants would be engaged toprepare detailed design and construction drawings for 60,000 ha of tertiaries,from which 30,000 ha would be selected for execution under the project. Tocarry out the above assignment, about 125 man-months of expatriate assistanceand 625 man-months of local consultants' services would be required.

Madiun-Solo Groundwater Pilot Project

2. Consulting services for the preparation of the feasibility reporton the proposed groundwater pilot project were provided under Credit 289-IND.The original consulting services agreement with ELC-NK, which was executed in1972, covered a term of 35 months for the assessment of the groundwaterpotential of 2,500 sq km in the Madiun and Solo River basins. By an addendumto the contract in 1974, the term of consulting services was extended to 55months, with a final report due in May 1977. A subsequent addendum in early1976 further extended the term of the same contract to September 1977 toallow the consultants to complete additional drilling. The due date of thefinal report remained unchanged, but a supplemental report covering thefindings of the additional drilling is required in September 1977.

3. Under the proposed project, the term of the consultants' contractwould be further extended and expanded to include preparation of detaileddesigns and construction drawings for the three pilot schemes, supervision ofwell drilling, installation of equipment, and civil works construction;operational guidance during the first two years following implementation ofthe plan; and feasibility study for large-scale groundwater development(about 30,000). Approximately 225 man-months of consulting services would berequired to accomplish the above-mentioned work. Consultants would operateas they have done thus far, working closely with a counterpart team forpurposes of training and knowledge transfer. As in the past, the counterpartforce would be drawn from P2AT, the agency under the DGWRD responsible forgroundwater resource investigations and development throughout Indonesia.

4. Operational guidance to be provided by the consultants to P2ATduring the first two years following project completion would cover operationand maintenance of mechanical and electrical equipment, distribution of water,

ANNEX 6Page 2

determination of consumptive use, monitoring of groundwater reservoirs, andintegration of groundwater and surface water supplies.

5. The consultant team would include a tearm leader, geohydrologist,drilling supervisor, an irrigation engineer, mechanical engineer, topographerand construction supervisor, who would be on continuous duty in the projectarea over varying periods. Additional short-term assignments would beutilized to provide periodic expertise as required in those fields, as wellas in topography, hydrology, agronomy, electrical systems, and economics.

Ciujung Drainage

6. Consultants are being engaged under Loan 1268-IND to undertakedetailed design and preparation of tender documents for the Ciujung, as wellas the four other PROSIDA drainage areas. Additional services by expatriateconsultants will be provided under the project for assistance in the super-vision of construction in the Ciujung area.

Audio-Visual Training Aids

7. Existing consulting services with NEDECO for assistance in devel-oping an audio-visual (AV) training program for operation and maintenance wasexecuted in mid-1976 and covers the period through June 1977.

8. The extension of the contract for training in operation and main-tenance would-require 50 man-months of consultant time. Expansion into theconstruction supervision field would require an additional 50 man-months ofconsultant effort, for a total obligation of 100 man-months. The contractperiod would extend for about three years and would involve six consultantsover various periods of assignment.

Cirebon-Rentang Tertiary Systems

9. The construction of tertiary irrigation and drainage systems on180,000 ha in the Cirebon and Rentang subprojects was incorporated in Loan1100-IND, with the expectation that detailed design and preparation ofconstruction drawings would be accomplished by PROSIDA staff. PROSIDA'scapability was considerably overestimated, however, and it is now apparentthat within the time frame for construction set forth under tht project,PROSIDA could only produce designs for about 25,000 ha. Consequently, theexpansion of the PROSIDA staff or the utilization of local consultant forcesto undertake the work on the remaining 155,000 ha is essential to keep thetertiary system construction program on schedule.

10. Detailed design and preparation of construction drawings fortertiary systems are highly personnel-intensive, requiring engineers,engineering technicians and draftsmen, and supporting services personnel,especially in the printing and reproduction areas. It is estimated that about2,000 man-months of intensive effort would be involved in completing thedesigns and drawings for 155,000 ha. Engineers and engineering technicianswould account for about 1,100 man-months, engineering draftsmen about 600man-months, and supporting services about 300 man-months. On top of this,

ANNEX 6Page 3

the PROSIDA staff would have to maintain an orderly flow of design andconstruction drawings to complete the main works in Rentang by March 1980 andthose in Cirebon by Mtarch 1981. Because of severe GOI personnel limitations,however, expansion of the PROSIDA staff to undertake tertiary designs on theremaining 155,00 ha would be extremely doubtful. The only viable alternativeis to engage local consultants.

11. Because of the magnitude of the work involved, no single localconsulting firm would be capable of providing all the above services. Thereare, however, a number of small to medium sized local firms that are familiarwith and have performed identical services for GOI, many of whom have alreadybeen prequalified by PROSIDA and approved by the Bank under Loan 1268-IND.These firms would have the combined capability to accomplish the work.

Records Depository and Retrieval System

12. Establishment of this system will require a nominal amount of expat-riate consultant assistance estimated to total eight man-months spread over aperiod of one year. It is possible, although not certain, that a singleconsultant could handle all of the assistance required in four distinct areasof records management. The four types of assistance, which would occur atprogressive stages of implementation are as follows:

(a) identification and analysis of the records management problem andrecommendation of appropriate physical systems and equipment (twoman-months);

(b) supervision of equipment installation, and initial operationand training of central office staff (two man-months);

(c) follow-up review of system operation, possible modification ofequipment, materials and staff management, and fine-tuning ofprocedures (two man-months); and

(d) training of subproject personnel in application, utilization andoperation of system (two man-months).

Consultant assistance not specifically identified above would also includeselection of and arrangement for appropriate overseas training in recordsmanagement for two candidates from the PROSIDA staff.

13. A summary of consulting services involved in the project is con-tained in Table 1.

ANNEX 6Table 1

INDONESIA

IRRIGATION VIII

Estimated Consulting Requirements

Foreign /a Local /b----- (man-months) -----

Madiun Rehabilitation

Design engineer 24Specifications - administration engineer 12Mechanical engineer 65 TDY engineers (Bendo Dam) 9Construction engineer 72Tertiary design engineers - 625

Subtotal 123 625

Madiun Groundwater Pilot Project

Permanent field staff 144TDY specialists 81

Subtotal 225

Ciujung Drainage

Construction engineer 24

Audio Visual Training Aids Program

Extension - O&M training 50Expansion - construction supervision 50

training 100Subtotal

Cirebon - Rentang Tertiary Systems

Tertiary Design Engineers - 2,000

Records Depository and Retrieval System

Adviser 8

Total 480 2,625

/a Includes expatriates permanently assigned to the site and specialists onshort visits.

/b Includes engineers, technicians and draftsmen.

ANNEX 7Table 1Page 1

INDOUIESIA

IRRIGATION VIII

Cost Estimate /a

ForeignLocal Foreign Total Local Foreign Total Exchange--- (Rp million) ---- --- (US$ million) … (%) -

I. Madiun Rehabilitation (Stage I)Civil works (75,000 ha)Housing & inspection &

access roads 1,330 870 2,200 3.2 2.1 5.3 40Headworks & weirs 1,700 2,075 3,775 4.1 5.0 9.1 55Primary & secondary canals 3,860 3,860 7,720 9.3 9.3 18.6 50Drainage works 125 125 250 0.3 0.3 0.6 50Telecommunications 40 210 250 0.1 0.5 0.6 80Tertiary development

(30,000 ha) 1,700 750 2,450 4.1 1.8 5.9 30Subtotal 8,755 7,890 16,645 21.1 19.0 40.1 47

Consulting services /b 500 540 1,040 1.2 2.5 50Vehicles & equipment /c - 580 580 - 1.4 100

Administration & overhead 1,120 210 1,330 2.7 0.5 3.2 15Land acquisition /d 500 - 500 1.2 - 1.2 -

Base Cost 10,875 9,220 20,095 26.2 22.2 48.4 46Physical contingencies 2,700 2,320 5,020 6.5 5.6 12.1 46Expected price increases 3,650 3,115 6,765 8.8 7.5 16.3 46

Total 17,225 14,655 31,880 41.5 35.3 76.8 46

II. Ciujung DrainageCivil works (5,700 ha)Drainage structure 540 540 1,080 1.3 1.3 2.6 50Primary & secondary drains 665 705 1,370 1.6 1.7 3.3 50River earthwork - 40 40 - 0.1 0.1 50Inspection & access roads 165 165 330 0.4 0.4 0.8 50Bridges 85 80 165 0.2 0.2 0.4 50

Subtotal 1,455 1,530 2,985 3.5 3.7 7.2 49Consulting services /e - 85 85 - 0.2 0.2 90Vehicles & equipment /c - 85 85 - 0.2 0.2 100Administration & overhead 210 40 250 0.5 .1 0.6 15Land acquisition 580 - 580 1.4 - 1.4 -

Base Cost 2,245 1,740 3,985 5.4 4.2 9.6 44Physical contingencies 540 455 995 1.3 1.1 2.4 44Expected price increases 705 580 1,285 1.7 1.4 3.1 44

Total 3,490 2,775 6,265 8.4 6.7 15.1 44

ANNEX 7Table 1Page 2

Foreign

Local Foreign Total Local Foreign Total Exchange-- (Rp million) ---- --- (US$ million) … (x) -

III. Madiun Groundwater Pilot ProjectCivil works (2,800 ha)

Drilling & installing casing,30 tubewells 80 130 210 0.2 0.3 0.5 60

Pumphouse with discharge box,33 pumphouses 80 45 125 0.2 0.1 0.3 35

Irrigation & drainage canals& structures 40 - 40 0.1 - 0.1 45

Inspection & access roads 40 85 125 0.1 0.2 0.3 45Subtotal 240 260 500 0.6 0.6 1.2 50

Consulting services /f 165 580 745 0.1 1.4 1.8 80Training - 335 335 - 0.8 0.8 100

Vehicles, equipment &materials /c - 915 915 - 2.2 2.2 100

Administration & overhead 165 45 210 0.4 0.1 0.5 15Base Cost 570 2,135 2,705 1.4 5.1 6.5 79

Physical contingencies 125 500 625 0.3 1.2 1.5 79Expected price increases 125 455 580 0.3 1.1 1.4 79

Total 820 3,090 3,910 2.0 7.4 9.4 79

IV. Technical AssistanceRecords depository & retrieval

systemEquipment /c - 85 85 - 0.2' 0.2 100

Consulting services &training /g -- 40 40 - 0.1 - 0.1 80

Audio-visual training services /hBuildings 455 250 705 1.1 0.6 1.7 35Audio visual equipment 125 170 295 0.3 0.4 0.7 60Consultants' services 80 250 330 0.2 0.8 80

Mapping /i 375 1,495 1,870 0.9 3.6 4.5 80Consulting services, Cirebon-

Rentang tertiaries j1,160 500 1,660 2.8 1.2 4.0 30Base Cost 2,195 2,790 4,985 5.3 6.7 12.0 56

Physical contingencies 210 290 500 0.5 0.7 1.2 56Expected price increases 625 830 1,455 1.5 2.0 3.5 56

Total 3,030 3,910 6,940 6.9 8.8 16.7 56

Grand Total 24,565 24,430 48,995 59.2 58.8 118.0 50

/a Updated to end 1977 prices and based on exchange rate of Rp 415 = US$1.0./b Provided for construction, supervision (foreign consultants) and tertiary design on

60,000 ha (local consultants) at billing rates of US$6,000-7,000/man-month forexpatriates, US$1,200-1,500/man-month for local engineers and US$450/man-month forlocal draftsmen; does not include consulting services provided under Loan 1100-IND(US$2.9 million foreign exchange or US$3.6 million total cost).

/c See Annex 4, Table 5./d Valued at Rp 150 - Rp 250/sq m./e For construction supervision by expatriates at billing rates similar to those in

footnote /b./f For detailed engineering and construction supervision by expatriates at billing rates

similar to those in footnote /b; also includes consultants' specialized equipment andmiscellaneous expenses.

/g Includes services of an adviser and overseas training of two technicians who willoperate the system.

/h This is in addition to the consultants' services already provided under Loan 1100-IND./i See Annex 4, Table 7.X For local engineers and draftsmen at billing rates similar to those in footnote /b, cost

also includes consultants' miscellaneous expenses./k Includes embedded items, electrical wiring and cost of erecting mechanical and electrical

equipment.

ANNEX 7Table 2

INDONESIA

IRRIGATION VIII

Expected Price Increases

Calendar Year1977 1978 1979 1980 1981 1982

Annual Inflation Rate, %Civil works 20 15 15 12 12 12Equipment & services 7.5 7.5 7.5 7 7 7

Indonesian Fiscal Year /a Total77/78 78/79 79/80 80/81 81/82 82/83 Increase

… ___________ ___________ …(%)… _____________________Annual Inflation Rate

Civil works /c 4 /b 15 13 12 12 12Equipment & services 2 /b 7.5 7 7 7 7

-…U---------------- US$ Mlillion ----

I. Madiun Rehabilitation (Stage I)Civil works 0.4 2.5 4.9 7.0 - - 14.8Equipment & services - 0.3 0.5 0.7 - - 1.5

Total 0.4 2.8 5.4 7.7 - - 16.3

II. Ciujung DrainageCivil works - 0.6 1.2 0.9 - - 2.7Equipment & services - 0.1 0.2 0.1 - - 0.4

Total - 0.7 1.4 1.0 - - 3.1

III. Madiun Groundwater Pilot ProjectCivil works - 0.1 0.2 0.1 - - 0.4

Equipment & services - 0.2 0.3 0.3 0.1 0.1 1.0Total - 0.3 0.5 0.4 0.1 0.1 1.4

IV. Miscellaneous ServicesCivil works - 0.1 0.4 0.4 - - 0.9

Equipment & services - 0.1 0.7 0.9 0.9 - 2.6Total - 0.2 1.1 1.3 0.9 - 3.5

Grand Total 0.4 4.0 8.4 10.4 1.0 0.1 24.3

/a April 1 - March 31.

/b Base cost already updated to end 1977 prices.

/c Projected from actual inflation rates experienced in a large number of civilworks contracts in Indonesia and based on the assumption that inflationrates for local currency component equal inflation rates for indirect foriegnexchange costs.

ANNEX 7Table 3

INDONESIA

IRRIGATION VIII

Proposed Allocation of Proceeds of Loan

Cost LoanTotal Foreign Amount-------- US$ Million -------

I. Civil Works:PROSIDA 49.0 23.3 35.5P2AT 1.2 0.6 0.9Physical contingencies 4.3 2.1 -Expected price increases 6.2 3.0 -

Subtotal 60.7 29.0 36.4 /a

II. Vehicles & EquipmentPROSIDA 2.5 2.2 2.6P2AT 2.2 2.2 2.4Physical contingencies - - -

Expected price increases 0.6 0.6 -Subtotal 5.3 5.0 5.0 /b

III. Consulting ServicesPROSIDA 7.6 /c 3.4 8.1P2AT 1.8 1.4 1.9Physical contingencies - - -

Expected price increases 0.6 0.3 -Subtotal 10.0 5.1 10.0 /d

IV. Overseas Training 0.8 e 0.8 /e

V. Mapping:

PROSIDA 4.5 3.6 3.8Physical contingencies - - -

Expected price increase 0.3 0.2 -Subtotal 4.8 3.8 3.8 /f

VI. Unallocated:Balance of physical contingencies 12.9 6.5 3.0Balance of expected price increases 16.6 7.9 4.0Land acquisition 2.6 - -

Administration & overhead 4.3 0.7 -Subtotal 36.4 15.1 7.0

Total 118.0 58.8 63.0

/a Disbursements will be 60% of total expenditures./b Disbursements will be 100% of foreign expenditures for directly imported

goods and equipment, 95% of ex-factory costs for locally manufacturedequipment, 65% of total expenditures for locally procured imported goodsand equipment, excluding vehicles, and 40% of total expenditures forlocally assembled vehicles.

/c Does not include consulting services that are already provided underLoan 1100-IND.

/d Disbursements for training will be 100% of foreign expenditures; forconsulting services, 100% of total expenditures for both foreign andlocal consultants.

/e Disbursements will be 100% of foreign expenditures./f Disbursements will be 80% of total expenditures.

ANNEX 8Table 1

INDONESIA

IRRIGATION VIII

Schedule of Expenditures

Indonesian Fiscal Year /a TotalItem 77/78 78/79 79/80 80/81 81/82 82/83 Cost

----------------- US$ Million ----------------

I. Madiun Rehabilitation(Stage I) 12.3 17.9 22.5 24.1 - - 76.8

II. Ciujung Drainage 1.8 4.8 5.6 2.9 - - 15.1

III. Groundwater Pilot Project 1.3 2.6 3.3 1.4 0.4 0.4 9.4

IV. Technical Assistance 0.2 1.6 5.7 5.2 4.0 - 16.7

Total 15.6 26.9 37.1 33.6 4.4 0.4 118.0

/a April 1 - March 31.

ANNEX 8Table 2

INDONESIA

IRRIGATION VIII

Schedule of Expenditures

Indonesian Fiscal Year TotalItem 77/78 78/79 79/8,0 80/81 81/82 82/83 Cost

US$ Million ----------------

I. Madiun Rehabilitation(Stage I)

Civil works 8.0 10.0 11.2 10.9 - - 40.1Equipment & services 1.6 2.1 2.4 2.2 - - 8.3

Base Cost 9.6 12.1 13.6 13.1 - - 48.4Physical contingencies 2.3 3.0 3.5 3.3 - - 12.1Expected price increases 0.4 2.8 5.4 7.7 - - 16.3

Total 12.3 17.9 22.5 24.1 - - 76.8

II. Ciujung DrainageCivil works 0.9 2.3 2.6 1.4 - - 7.2Equipment & services 0.3 0.8 0.9 0.4 - - 2.4

Base Cost 1.2 3.1 3.5 1.8 - - 9.6Physical contingencies 0.6 1.0 0.7 0.1 - - 2.4Expected price increases - 0.7 1.4 1.0 - - 3.1

Total 1.8 4.8 5.6 2.9 - - 15.1

III. Groundwater Pilot ProjectCivil works 0.2 0.4 0.5 0.1 - - 1.2Equipment & services 0.8 1.4 1.8 0.7 0.3 0.3 5.3

Base Cost 1.0 1.8 2.3 0.8 0.3 0.3 6.5Physical contingencies 0.3 0.5 0.5 0.2 - - 1.5Expected price increases - 0.3 0.6 0.4 0.1 0.1 1.4

Total 1.2 2.5 3.3 1.4 0.4 0.4 9.4

Ill. Technical AssistanceCivil works system 0.1 0.4 0.7 0.5 - - 1.7Equipment & services 0.1 0.8 3..6 2.9 2.9 - 10.3

Base Cost 0.2 1.2 4.3 3.4 2.9 - 12.0Physical contingencies - 0.1 0.3 0.4 0.4 - 1.2Expected price increases - 0.2 1.1 1.3 0.9 - 3.5

Total 0.2 1.5 5.7 5.1 4.2 - 16.7

Grand Total 15.6 26.8 37.,1 33.5 4.6 0.4 118.0

ANNEX 8Table 3

INDONESIA

IRRIGATION VIII

Schedule of Disbursements

Bank Fiscal Year Accumulatedand Semester Disbursements

(US$ Million)

1978Ist 0.22nd 1.6

1979Ist 5.72nd 12.0

19801st 20.02nd 31.5

19811st 41.52nd 54.0

1982Ist 61.52nd 62.0

1983ist 62.52nd 63.0

ANNEX 9Page 1

INDONESIA

IRRIGATION VIII[

Training

1. The training components included under previous credits and loans,particularly Loans 1100 and 1268-IND, are expected to increase the number ofirrigation O&M and construction personnel that would be qualified to fill upvacancies resulting from the retirement of senior personnel and new positionscreated to upgrade construction supervision an,d O&M services. The trainingprograms under Credit 514-IND and Loan 1100-IND are starting with the assis-tance of consultants and advisers engaged by the implementing agencies, andthe training program under Loan 1268-IND is expected to start in early 1978.Under the proposed project, the training program instituted under previouscredits and loans would be continued by: (a) expanding the audio visualtraining program started under Loan 1100-IND; (b) assisting in trainingpersonnel to operate a records depository and retrieval system and a textprocessing and typing system at PROSIDA's central office in Jakarta; and(c) training senior and middle level DGWRD personnel in planning, designand O&M of groundwater and surface water irrigation systems and relatedfacilities.

Audio Visual Training

2. The audio visual training aids being developed under Loan 1100-INDconsist of sets of slides synchronized with sound tapes. Each set or programdeals with a particular aspect of operation or maintenance of irrigationsystems. All audio-visual training aids would be produced at the Ministry ofPublic Works Regional Training and Education Center in Surabaya with theassistance of consultants (NEDECO), who have been engaged under Loan 1100-IND,and whose tenure would be extended under the project.

3. The audio-visual training sessions, which would run for 90 days,would be held at the above Center. The trainees would include subsectionengineers and selected irrigation foremen from all parts of Indonesia. Ontheir return to their respective provinces, these middle level irrigationpersonnel would in turn conduct training sessions at the provincial, districtand project levels, using equipment and audio visual training aids thatwould be supplied to each province. The trainees in these sessions wouldprimarily be lower level irrigation personnel (ditch riders, gate keepersand selected permanent laborers) and subsection engineers who were unableto attend the training sessions at the Center.

Training on Use of Records Depository and Retrieval System

4. The project would assist in training PROSIDA and DGWRD personnel inmicrofilming drawings, reports, records and other technical documents, and inindexing and storing the microfilms so that they could be readily retrieved

ANNEX 9Page 2

for future use and reproduced, if required. The project would include over-seas in-service training for two technicians at the US Bureau of Reclamationor some other institution where equipment of the type to be procured is beingextensively used. In addition, a specialist to be engaged under the projectto advise PROSIDA on the appropriate type of equipment to procure and toassist in its installation, would institute local in-service training afterthe equipment is installed.

Groundwater Resources Development Training

5. The project would assist in sending three senior level P2AT personnelon a one-month study tour of neighboring countries in Asia, where groundwaterresource utilization has reached a more advanced stage of development andmanagement than the Madiun-Solo groundwater study area. In addition, theproject would assist in sending three middle level personnel on a three-monthin-service training course to Europe and four middle level personnel on asimilar training course to neighboring countries in Asia. Subjects to becovered in the training courses would include geohydrology, hydrology, irriga-tion engineering, agronomy, groundwater irrigation management, computeranalysis and mechanical engineering.

Design and O&M Training

6. Under the project, about 20 DGWRD planning and design engineerswould undergo in-service training of 6 to 12 months each at selected con-sultants' offices supplemented, wherever possible, with theoretical coursesoffered in nearby universities. The project would also include study toursof 2 to 3 months each for about 40 DGWRD senior, middle level and lower levelO&M personnel in neighboring countries in Asia.

ANNEX 10Table I

INDONESIA

IRRIGATION VIII

OPERATION AND MIAINTENANCE

Breakdown of Current and Proposed O&M Funds

Indonesian Fiscal YearItem 76/77 77/78

---- (Rp/ha) ----

Salaries, irrigation supervisors and below 820 880

Annual desilting 500 550

Canal repairs, trimming and sodding 155 190

Maintenance of headworks, structures, gates,masonry linings, etc. 1,100 1,150

Transport 50 60

Administration 35 40

Housing and office 15 25

Workshops 130 140

Inspection roads 120 140

Communications 25 30

Hydrological stations 70 75

Maintenance of drainage works 180 220

Total /a 3,200 3,500

/a From Central Government. In addition, Provincial Government allocatesabout Rp 900/ha to cover salaries of personnel above irrigation supervisor,for a total of Rp 4,100/ha.

ANNEX 10Table 2

INDONESIA

IRRIGATION VIII

OPERATION AND MAINTENANCE

FY77/78 Budgetary Allocation for Bank-Assisted Proiects L/

I Rehabilitated Areas /b 11977/78 Rehabilitation Areas /cI Future Rehabilitation Areas /d Total AreaUnit Total I Unit Total . Lnit Total Total Unit

Sub_pr_ect Area Budget Budget I Area Budget Budget | Area Budget Budget | Area Budet etI (ha) (Rp/ha) (Rp Million)l (ha) (Rplha) (Rp Million) I (ha) (Rp/ha) (Rp Million)| (ha) (Rp Million) (Rp/ha)

Credit l27-IND IRentang I 90,216 3,500 315.8 I - _ _ I _ _ _ I 90,216 315.8 3,500Cisedane I 40,663 3,500 142.3 I - - _ I - _ _ j 40,663 142.3 3,500Glapan-Sedadi I 46,010 3,500 161.0 I _ _ _ I _ _ _ I 46,010 161.0 3.500Way Seputih I 11,500 3,500 40.3 - - _ 13.500 /n 1.000 13.5 | 25.000 53.8 2,152

Total 1188,389 3,500 659.4 - _ _ 13,500 1,000 13.5 I 201,889 672.9 3,333

Credit 220-IND ICiujung I 24,300 3,500 85.1 I _ _ _ -_ _ _ 24,300 85.1 3.500Pesali-Comal 1123.283 3,500 431.5 I - -- -I 123,283 431.5 3,500Sadang 1 47.330 3,500 165.7 | 3,000 1,300 3.9 - - - 50.330 169.6 3,370

rotal 194,913 3,500 682.3 J 3,000 1.300 3.9 J _ _ _ 197.913 686.2 3,467

Credit 289-IND IPekalen-Sanpean 148,550 3,500 519.9 1 50,000 1,300 65.0 I 30,560 1,600 48.9 1 229,110 633.8 2,766

Loan 1100-IND ICirebon I 12,000 3,500 42.0 I 20,000 1,300 26.0 I 56,515 1,600 90.4 I 88,515 158.4 1,790Sanpean Bare - - -_I -_ _ 8,000 /f - _ 8.000

Total I 12,000 3,500 42.0 I 20,000 1,300 26.0 | 64,515 1,401 90.4 I 96,515 158.4 1.641

Loan 1268-IND INorth Sadang - - - I 2,000 1,300 2.6 | 4,000 /f - - I 6,000 2.6 433

Irrigation VIIIMadiun (Stage 1) I -- 75,000 1.600 120.0I 75.000 120.0 1,600

Subtotal (PROSIDA) 1543,852 3,500 1,903.6 I 75,000 1,300 97.5 187,575 1,454 272.8 8 806,427 2,273.9 2,820

Credits 195 S 514-IND IJatiluhur 1230,000 4,200 966.0 I 15,000 1,300 19.5 I 43,000 /g 1,000 43.0 I 288,000 1,028.5 3,571

Irrigation IXSedeku _b h 9,000 3,500 31.5 - - 8000 1,600 12.8 17,000 44.3 2606

Grand Total 1782,852 3,706 2,901.1 1 90,000 1,300 117.0 1238,575 1,377 328.6 i 1,111,427 3,346.7 3,001

/a From Central Government (established jointly by GOI and the Bank).

/b Would require full O&M funds.

Ic Would require operating funds until they are shut down for rehabilitation.

/d Would require funds for operation and urgent repairs to keep systems functioning until they are rehabilitated.

/e System rehabilitated but service area not yet cleared; minimal naintenance funds required.

/f No water supply until main canal is completed.

L& Primarily nontechnical systems requiring significant new system construction (minimal maintenance funds).

/h FPr O&i purposes, 10,926 ha of this system, which were rehabilitated under the Glapan-Sedadi subproject (Credit 127-IND), would continue to be fundedmader that subproject.

INDONESIA

IRRIGATION VIII

Rice Price Structure, 1977 and 1985(Rp and US$/ton at constant end-1977 prices)

Madiun Area Ciujung Area1977 1985 1977 1985

Rp/ton US$/ton Rp/ton US$/ton Rp/ton US$/ton Rp/ton US$/ton

Rice

Export price Thai 5%-42% broken /amix f.o.b. Bangkok 114,400 220 150,800 290 114,400 220 150,800 290

Ocean freight and insurance 10,400 20 10,400 20 10,400 20 10,400 20Port handling, storage and transport

to wholesaler 3,300 6 3,300 6 3,700 7 3,700 7Transport, handling mill to wholesaler -4,100 -8 -4,100 -8 -3,300 -6 -2,500 -5Rice price ex-mill project area, 124,000 238 160,400 308 125,200 241 162,400 312Paddy equivalent price (63% recovery) 78,100 150 101,100 194 79,000 152 102,300 197Milling cost less value of by-products - 700 -1 - 700 -1 - 700 -1 - 700 -1Drying and cleaning -1,500 -3 -1,500 -3 -1,500 -3 -1,500 -3Handling and transport farm to mill

(BUUD/KUD) -1,200 -2 -1,200 -2 -2,100 -4 -1,200 -2

Farmgate paddy price /b 74,700 144 97,700 188 74,700 144 98,900 190

(Financial farmgate price) /c (65,000) /d (157) (78,000) (188) /e (61,000) /f (147) (78,000) (188)

/a Assumed rice quality: 10% of production, 5% brokens; 60% medium grade, 25-35% brokens; 30% lower grade, 42%brokens. Assumed prices in 1985 (in constant end-1977 prices); 5% brokens, US$405/ton; 25-35% brokens,US$282/ton; 42% brokens, US$263/ton.

/b At a shadow-priced exchange rate of Rp 520 = US$1.00./c At the official exchange rate of Rp 415 = US$1.00./d Present financial price calculated as follows: floor price at BUUD/KUD for 14% moisture content paddy Rp 70/kg

less Rp 1.5/kg drying and cleaning, Rp 1.2/kg transport farm to BUUD/KUD, Rp 2.3/kg for market imperfections. H/e In the future, distortions are assumed eliminated between internal and world market prices. z/f Present financial price calculated as follows: floor price at BUUD/KUD for 14% moisture content paddy Rp 70/kg

less Rp 1.5/kg drying and cleaning, Rp 2.1/kg transport farm to BUUD/KUD, Rp 5.4 for market imperfections. J-

ANNEX 11Table 2

INDONESIA

IRRIGATION VIII

Sugar and Soybean Price Structure 1977 and 1985(Rp and US$/ton at constant end-1977 prices)

1977 1985Rp/ton US$/ton Rp/ton US$/ton

Sugar

Export price f.o.b., Caribbean 143,500 276 192,400 370Ocean freight and insurance 19,200 37 19,200 37Port handling Surabaya/Jakarta 3,000 6 3,000 6Sugar price on trucks Surabaya/Jakarta 165,700 319 214,600 413Transport Madiun to Surabaya/Jakarta -7,500 -14 - 7,500 -14Cane processing -20,000 -38 -20,000 -38Cane transport farm to mill - 7,000 -13 - 7,000 -13

Farmgate price of sugar cane at 10%sugar cane /a 13,100 25 18,000 35

Financial farmgate value factory cane /b (11,000) (27) (14,500) (35) /c

Soybean

Export price f.o.b. US gulfport 119,600 230 173,700 334Ocean/freight and insurance 19,800 38 19,800 38Port handling Surabaya 2,500 5 2,500 5Soybean price on trucks Surabaya 141,900 273 196,000 377Transport Madiun to Surabaya -3,700 -7 -3,700 -7Transport farm to Madiun -3,000 -6 -3,000 -6Farmgate price soybean /a 135,200 260 189,300 364

Financial farmgate price /b (130,000) (313) (151,100) (364) /c

/a At a shadow-priced exchange rate of Rp 520 = US$1.00.

/b At the official exchange rate of Rp 415 = US$1.00.

/c In the future, distortions are assumed eliminated between internal and worldmarket prices.

INDONESIA

IRRIGATION VIII

Fertilizer Price Structure, 1977 and 1985(Rp and US$/ton at constant end-1977 prices)

Urea Triple superphosphate Muriate of potash1977 1985 1977 1985

Rp/ton US$/ton Rp/ton US$/ton Rp/ton US$/ton Rp/ton US$/ton Rp/ton US$/ton Rp/ton US$/ton

World export price /a 89,400 172 100,400 193 71,200 137 89,400 172 35,900 69 36,400 70

Ocean freigtht and insurance 11,400 22 4,200 8 11,400 22 11,400 22 11,400 22 11,400 22

Handling and distribution costs to retaillevel 19,100 37 19,100 37 19,100 37 19,100 37 19,100 37 19,100 37

Transport BUUD kiosk to farm 1,000 2 ____ _2 1,000 2 1,000 2 1,000 2 1,000 2

Fertilizer farmgate price /b 120,900 233 124,700 240 102,700 198 120,900 233 64,700 130 67,900 131

(Financial farmgate price) /c /d (71,000) (171) (99,600) (240) (71,000) (171) (96,700) (233) (71,000) (171) (54,400) (131)

/a Urea export price 1977 f.o.b. Tokyo; 1985 f.o.b. Palembang.

/b At a shadow-priced exchange rate of Rp 520 = US$1.00.

/c Present financial price is calcullated as follows: fixed retail praice at BUUD/<UD of Rp 70/kg plus Rp !/kg BUUD/Kln D to farm transport cost. Ic. thefuture, distortions are assumed eliminated between internal and world market prices.

/d At the official exchange rate of Rp 415 = US$1.00.

X P

H

ANNEX 12Page 1

INDONESIA

IRRIGATION VIII

Crop and Farm Budgets

1. Annex 2 contains the existing and proposed cropping patterns. Thisannex shows separately for the Mladiun rehabilitation, pilot groundwater andCiujung areas:

(a) production costs for irrigated and rainfed crops at present, and inthe future "with" the project (Tables 1, 2). Present costs andinput use are based on interviews with farmers and governmentofficials in the areas during appraisal. Without the project,little change is expected in the future level of inputs. Futureinput levels for "with project" conditions are based on the BDMASprogram recommendations for each area. Table 3 shows the assumedinput quantities used in the present and future situations;

(b) monthly labor requirements per ha based on present and proposedcropping calendars for the wet and dry seasons (Table 4). With orwithout the project, the labor requirements for land preparationand planting would not change in 21adiun. With the project, asreplanting after flooding would be greatly reduced, labor used forplanting would fall in Ciujung. Labor requirements would increasein all areas for crop management, including such activities asweeding, fertilizer and pesticide application, and irrigation;

(c) crop budgets for the present and the future "with" and "without"the project (Table 5);

(d) farms budgets for typical family farms of 0.2, 0.5 and 1.3 ha inthe Madiun area, and 0.3 and 0.8 ha in the Ciujung area (Table 6).The budgets are calculated according to cash flows. Labor costsinclude only hired and harvest labor, not farm family labor, andwere determined for nonharvest periods by calculating the excess oftotal monthly labor requirements over an estimated 40 man-days offamily labor per farm per month. Hired farm labor is costed atRp 230/day in MIadiun and Rp 200/day in Ciujung. In Mladiun, futurecropping patterns and intensities would remain as now. For theanalysis, soybeans represent the considerable area of secondary orpalawija crops (in order of importance; soybeans, corn, cassava,sweet potatoes and peanuts). Sugarcane is excluded from the farmbudgets as the project is unlikely to increase sugarcane production,and the future is uncertain because of the Government's policy ofswitching cane production from the sugar factories to farmers. Farms,which are leased once every three years to the sugar factories for asingle cane crop, produce an average annual crop income some 20%less than the crop incomes calculated in Table 6. This includes

ANNEX 12Page 2

the rental payment by the factory, and involves some 33% of theproject area. No adjustments were made in the representative farmbudgets to account for this lower income, although it was taken intoconsideration in the economic analysis (Annex 14). The croppingintensity on the 1.3 ha farm is less than on the two smaller farms.In Ciujung, the cropping intensity would increase with the projectfrom 115% to 140%. Average annual land taxes at present and with theproject, respectively, are Rp 7,000 and Rp 12,000/ha in Madiun, andRp 4,000 and Rp 9,000/ha in Ciujung. In l4adiun, farmers would alsocontribute Rp 3,900/ha for O&M of the tertiary and quaternary units,and in Ciujung, Rp 1,500/ha. Sharecropping is extensive in bothareas. Except for the landlord paying the land tax and the share-cropper and his family contributing t'heir labor, the landlord andsharecropper divide equally gross production less harvesting andother production costs.

INDONESIA

IRRIGATION VIII

Crop Production Costs: Present (1977) /a

Madiun Rehabilitation and Pilot Groundwater Areas /b Ciujung Area

Rice Soybean /c Sugarcane _ Rice

Wet season Dry season Dry season Wet and dry seasons irrig. Wet season Dry season

Rainfed Irrigated Irrigated Irrigated I Irrigated II Farmer cane Factory cane Irrigated Irrigated

Cash inputs (Rp '000/ha) /d

Cultivation 17.9 (17.9) 17.9 (17.9) 12.5 (12.5) 0 (0) 0 (0) 0 (0) 0 (0) 13.6 (13.6) 9.5 (9.5)

Seed 3.0 (2.6) 3.6 (3.3) 3.6 (3.2) 4.1 (3.9) 4.1 (3.9) 20.0 (20.0) 40.0 (40.0) 5.3 (4.6) 4.1 (3.5)

Fertilizer 6.9 (4.3) 25.7 (15.6 18.6 (11.4) 2.1 (1.4) 1.5 (1.1) 32.5 (27.0) 65.1 (54.7) 11.7 (7.1) 3.5 (2.1)

Agrochemicals 0 (0) 4.9 (1.2) 5.7 (1.4) 1.9 (0.5) 1.9 (0.5) 11.4 (11.4) 19.0 (19.0) 3.8 (0.9) 2.9 (0.8)

Harvesting 4.1 (3.5) 7.2 (6.2) 6.3 (5.5) 0 (0) 0 (0) 0 (0) 0 (0) 5.0 (4.0) 5.9 (4.8)

Other 1.1 (1.1) 1.7 (1.7) 1.3 (1.3) 1.9 (1.9) 1.5 (1.5) 40.1 (40.1) 40.9 (220.4) 2.6 (2.6) 2.1 (2.1)

Interest 0 (2.6) (09) (4.1) 0 (2.7) 0 (0.3) 0 (0.3) 0 (46.5) 0 (0) 0 (3.2) (0) (2.2)

Total cash inputs 33.0 (32.0) 61.0 (50.0) 48.0 (38.0) 10.0 (8.0) 9.0 (7.3) 104.0 (145.0) 165.0 (375.0) 42.0 (36.0) 28.0 (25.0)

Labor inputs (man-day/ha)

Land preparation 36 36 29 20 22 85 170 55 40

Planting 40 40 40 35 35 40 75 55 40

Crop management 54 64 66 25 21 440 555 60 55

Harvesting 40 50 45 35 32 70 100 50 45

Total labor inputs 170 190 180 115 110 635 900 220 180

/a Economic prices for use in the economic analysis, and based on world market prices for rice, soybeans and fertilizers. Figures in parentheses are

financial prices.

/b Separate irrigated rice and soybean crop production costs were calculated for the pilot groundwater areas, and produced identical or practically

identical costs to the Madiun rehabilitation area. Thus one set of crop production costs are sufficient for these areas. Soybean production costs

at Balong and Caruban correspond to Soybean I; and at Tanon to Soybean II.

/c Soybean I = early crop planted after wet-season rice; Soybean II = late crop planted after Soybean I or sugarcane.

/d See Table 3 for physical input assumptions. |

INDONESIA

IRRIGATION VIII

Crop Productioni Costs: Future Without Project /a

_______ Madiun Rehabilitation and Pilot Groundwater Areas lb - Ciujung AreaRice Soybean /c Sugarcane Rice

Wet season Dry season Dry season Wet- and dry-season irrigated Wet season Dry seasonRainfed Irrigated Irrigated Irrigated I Irrigated II Farmer cane Factory cane Irrigated Irrigated

Casii Inputs (Rp '000/ha) L4Cultivation 17.9 (17.9) 17.9 (17.9) 12.5 (12.5) 0 (0) 0 (0) 0 (0) 0 (0) 13.6 (13.6) 9.5 (9-5)Seed 3.9 (3.1) 4.3 (3.5) 4.3 (3.5) 5.7 (4.5) 5.7 (4.5) 25.0 (25.0) 50.0 (50.0) 6.9 (5.5) 4.9 (3.9)Fertilizer 7.4 (5.9) 27.3 (21.9) 19.8 (15.9) 2.4 (1-9) 1.8 (1.4) 67.0 (53.9) 72.0 (57.9) 12.4 (9.9) 3.7 (3.0)Agrochemicals 0 (0) 4.9 (1.2) 5.7 (1.4) 1.9 (0.5) 1.9 (0.5) 15.2 (15.2) 19.0 (19.0) 3.8 (0.9) 2.9 (0.8)Harvesting 5.6 (4.4) 8.8 (7.0) 7.4 (5.9) 0 (0) 0 (0) 0 (0) 0 (0) 6.5 (5.1) 7.6 (6.1)Other i.2 (1.2) 1.8 (1.8) 1.3 (1.3) 2.0 (2.0) 1.6 (1.6) 44.8 (44.8) 45.0 (220.1) 2.8 (2.8) 2.4 (2.4)Interest - 0 (2.5) 0 L3.7) -(3_S) 0 (1.1) 0 (10) 0 (41.1) 0 (0) 0 j3_2) 0 (2.3)

Total Cash Inputs 36.0 (35.0) 65.0 (57.0) 51.0 (44.0) 12.0 (10.0) 11.0 (9.0) 152.0 (180.0) 186.0 (392.0) 46.0 (41.0) 31.0 (28.0)

Labor Inputs (man-days/ha)Land preparation 36 36 29 20 22 85 170 55 40Planting 40 40 40 35 35 40 75 55 40Crop management 54 64 66 25 21 505 555 60 55Harvesting 40 -5 45 35 32 90 110 50 45

Total Labor Inputs 170 190 180 115 110 720 910 220 180

/a See footnote /a, Table 1./b See footnote /b, Table 1./c See footnote Ic, TabLe 1. X/d See footnote /d, Table 1.

s(

INDONESIA

IRRIGATION VIII

Crop Production Costs: Future with Project at Full Development (1986) /a

Madiun Rehabilitation and Pilot Groundwater Areas Ciuiung AreaRice /b Soybean /c Sugarcane Rice

Wet season Dry season Dry season Wet and dry seasons irrig. Wet season Dry seasonIrrigated Irrigated Irrigated I Irrigated II Irrigated III Farmer cane Factory cane Irrigated Irrigated

Cash inputs (Rp '000/ha) /d

Cultivation 17.9 (17.9) 12.5 (12.5) 0 (0) 0 (0) 11.2 (11.2) 0 (0) 0 (0) 13.6 (13.6) 9.5 (9.5)Seed 3.5 (2.8) 3.5 (2.8) 6.4 (5.1) 6.4 (5.1) 6.4 (5.1) 25.0 (25.0) 50.0 (50.0) 3.7 (2.9) 3.5 (2.8)Fertilizer 32.9 (26.3) 26.1 (20.9) 3.6 (2.9) 2.7 (2.2) 6.1 (4.9) 67.0 (53.9) 72.0 (57.9) 26.6 (21.3) 27.3 (21.9)Agrochemicals 7.9 (2.0) 8.6 (2.2) 7.6 (1.8) 7.6 (1.8) 7.6 (1.8) 15.2 (15.2) 19.0 (19.0) 7.9 (2.0) 7.9 (2.0)Harvesting 12.3 (9.8) 11.2 (8.9) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 10.7 (8.4) 11.3 (8.9)Other 3.5 (3.5) 3.1 (3.1) 2.4 (2.4) 2.3 (2.3) 2.7 (2.7) 44.8 (44.8) 45.0 (220.1) 2.5 (2.5) 2.5 (2.5)Interest 0 (3.7) 0 (2.6) 0 (0.8) 0 (0.6) 0 (1.3) 0 (41.1) 0 (0) 0 (3.2) 0 (3.3)

Total cash inputs 78.0 (66.0) 65.0 (53.0) 20.0 (13.0) 19.0 (12.0) 34.0 (27.0) 152.0 (180.0) 186.0 (392.0) 65.0 (54.0) 62.0 (51.0)

Labor inputs (man-day/ha)

Land preparation 40 34 20 22 60 85 170 55 40Planting 40 40 35 35 30 40 75 40 40Crop management 90 96 44 38 45 505 555 80 85Harvesting 60 50 36 35 40 90 110 50 55

Total labor inputs 230 220 135 130 175 720 910 230 220

/a See footnote /a, Table 1./b Irrigated rice production costs are identical at Madiun rehabilitation and the groundwater development areas. X

/c Soybean I early crop planted after wet season rice; Soybean II = late crop planted after Soybean I or sugarcane; Soybean III = early and late crop axplanted in pilot groundwater development areas. t

/d See footnote /d, Table 1.

INDONEISIA

IRRIGATION VIII

Crop Production Costs: Physical Inputs

Madiun Rehabilitation and Pilot Groundwater Areas Ciuiumi AreaRice Sovbean Sug-rce RiceInputs/ha Wet season Dry season Dry season Wet and dry s*eons irri. Wet .aaom Dr. s neaso

Rainfed Irrigated Irrigated Irri. I /a Irri. II /a Irri. III /T Farmer cane Factory cane Irrigated Irrigated

Present (1977)

Cultivation - (animal-day) /b 22.4 22.4 15.7 - - - _ 17 12Seed - (kg) 40 40 40 30 30 L.S./ L.S. 70 45Fertilizer /c - (kg) Urea 40 170 120 - - 200 120 8s 25TSP 20 50 40 20 15 80 100 20 5KCl - - - - - - 200 - -(NH4 ) 2 504 - - - - - 100 350 - -

Agrochemicals - (1) Diazinon - 1.3 1.5 0.5 0.5 3 5 1 0.75(gm) Zinc phosphide - - - - - - - - -Harvesting costs - (X of crop yield/ha) 3 3 3 - - - - 3 3Interest /d - (%/month) 1.5 1.5 1.5 2 2 1.5 - 1.5 1.5

Future without project

Cultivation - (animal-day) 22.4 22.4 15.7 - - - - 17 12Seed - (kg) 40 40 40 30 30 L.S. L.S. 70 45Fertilizer - (kg) Urea 40 170 120 - - 200 120 so 25

TSP 20 50 40 20 15 sO 100 20 5KCl - - - - - - 200 - -(NH4 ) 2 SO4 - - - - - 100 350 - -

Agrochemicals - (1) Diazinon - 1.3 1.5 0.5 0.5 3 5 1 0.75(gm) Zinc phosphide - - - - - - - -Harvesting costs - (1 of crop yield/ha) 3 3 3 - - - - 3 3Interest - (/month) 1.5 1.5 1.5 2 2 1. 5 - 1.5 1.5

Future with project (1986)

Cultivation - (animal-day) 22.4 15.7 - - 14 - - 17 12Seed - (kg) 30 30 30 30 30 L.S. L.S. 32 30Fertilizer - (kg) Urea 200 160 - - - 90 130 170 175

TSP 65 50 30 22 50 150 150 4 45KC1 - - - - - 200 200 - -(NH4 ) 2 S0 4 - - - - - 300 300 - -Agrochemicals - (1) Diazinon 2 2.2 2 2 2 4 5 2.0 2.0(gI) Zinc phosphide 100 100 - - - - - I10 100Harvesting costs - (1 of crop yield/ha) 3 3 - - - - 3 3

Interest - (1/month) 1 1 1.5 1.5 1.5 1.25 1 1

/a Soybean I - early crop planted after wet season rice; Soybean II - late crop planted after Soybean I or sugarcane; Soybean III - early sad lato crop ao_on groundwater development areas.

/b Hiring cost is Rp 800/aniwAl-day for buffalo pair and driver.

/c TSP - Triple muperphosphate; KCL - Potassium chloride; (WHO)2 S0 4 - Amonium sulphate.

Ld Rice - interest is chargad on 90: (cash inputs - harvesting posts) for seven months.Soybeans - interest is charged on 90X of caea inputs for thi*e months. *iSugarcane - interest is charged on 90X (cash inpute + hiredilabor costs) for 12 months.

/e L.S. lump sun.

ANNEX 12Table 5

INDONESIA

IRRIGATION VIII

Monthly Labor Requirements for Crops (man-days/ha)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Madiun area

Wet season - IrrigatedRice -P/a 37 35 10 25 21 10 - 20 32 190

W 37 35 10 25 21 10 - - - - 20 32 190W 40 38 37 36 27 - - - - - 20 32 230

Dry season - Irrigated -,Rice - P - - - 15 39 55 15 16 40 - - - 180

W - - - 15 39 55 15 16 40 - - - 180w - - 10 44 56 25 30 55 - - - - 220

Soybean I /b - P - - - 10 25 20 15 23 22 - - - 115W - - - 10 25 20 15 23 22 - - - 115W - - 10 25 25 20 25 30 - - - - 135

Soybean II /b - P - - - - - 10 15 20 20 20 25 - 110w - - - - - 10 15 20 20 20 25 - 110w - - - - - 10 25 25 15 25 30 - 130

Farmer sugarcane - P 10 10 23 73 135 138 106 64 33 23 10 10 635W 14 14 31 75 148 149 118 72 45 26 14 14 720W 14 14 31 75 148 149 118 72 45 26 14 14 720

Factory sugarcane - P 14 14 33 104 192 196 150 90 47 33 14 13 900W 14 14 33 104 192 201 155 90 47 33 14 13 910W 14 14 33 104 192 201 155 90 47 33 14 13 910

Ciujung area

Wet season - IrrigatedRice - P 35 40 15 20 20 25 - - - - 25 40 220

W 35 40 15 20 20 25 - - - - 25 40 220W 35 15 25 35 40 15 - - - - 25 40 230

Dry season - IrrigatedRice - P - - - 7 22 45 30 27 39 10 180

w - - - 7 22 45 30 27 39 10 180w - - - 12 26 36 35 45 51 15 220

/a P = PresentW = Future without projectW = Future with project

/b Soybean I = early crop planted after wet-season rice.Soybean II = late crop planted after Soybean I or sugarcane.

INDONESIA

IRRIGATION VIII

Crop Budgets /a

Madiun Rehabilitation Area Ciujung AreaRice Soybean Rice

Wet season Dry season Dry season Wet season Dry seasonIrrigated Irrigated Irrig. I /b Irrig. II /b Irrigated Irrigated

Present (19i7)

Yield (ton/ha) 3.2 2.8 0.6 0.44 2.2 2.6Farmgate price (Rp '000/ton) 65 65 130 130 61 61Gross value of production (Rp'OO0/ha) 208 182 78 57 134 159Production costs, excluding labor (Rp'000/ha) 50 38 8 7 36 25Net value of production, excluding labor (Rp'000/ha) 158 144 70 50 98 134Labor requirements (man-days/ha) 190 180 115 110 220 180

Future without prolect

Yield (ton/ha) 3.0 2.5 0.55 0.4 2.2 2.6Farmgate price (Rp '000/ton) 78 78 151 151 75 75Gross value of production (Rp'000/ha) 234 195 83 60 165 195Production costs, excluding labor (Rp'000/ha) 57 44 10 9 41 28Net value of production, excluding labor (Rp'O00/ha) 177 151 73 51 124 167Labor requirements (man-days/ha) 190 180 115 110 220 180

Future with project (1986)

Yield (ton/ha) 4.2 3.8 0.8 0.63 3.6 3.8Faragate price (Rp '000/ton) 78 78 151 151 78 78Gross value of production (Rp'000/ha) 328 296 121 95 281 296Production costs, excluding labor (Rp'000/ha) 66 53 13 12 54 51Net value of production, excluding labor (Rp'O00/ha) 262 243 108 83 227 245Labor requirements (man-days/ha) 230 220 135 130 230 220

Incremental net value of production, excludinglabor (future with project - future withoutproject, Rp '000/ha) 85 92 35 32 103 78

/a Financial prices and costs are used, based on Tables 1-3, and Annex 12, Tables 1-3. ct (

/b Soybean I - early crop planted after wet-season rice.Soybean II = late crop planted after Soybean I or sugarcane.

ANNEX 12

Table 7

IIIGATI0 VIII

Farm Budmets

Madiun Reoabilitation Are. ciuJuna Area0.2 ha fara 0.5 ha fare 1.3 ha farm 0.3 ha farm 0.8 ha farm

Unit Preset Future with Prsuent Future with Present Future with Present Future with Present Future with

Project Project Project Project Project

Cropped areaWet seaon - Rice (ha) 0.20 0.20 0.50 0.50 1.30 1.30 0.30 0.30 0.80 0.80

Dry season - Rice (ha) 0.05 0.05 0.12 0.12 0.31 0.31 0.05 0.12 0.12 0.32

- Soybean I (ha) 0.10 0.10 0.26 0.26 0.40 0.40 - - - -

- Soybean II (ha) 0.08 0.08 0.20 0.20 0.33 0.33 - - - -

Total cropped area (ha) 0.43 0.43 1.08 1.08 2.34 2.34 0.35 0.42 0.92 1.12

Cropping intensity (2) 215 215 215 215 180 180 115 140 115 140

Crop production - Paddy (kg) 780 1.030 1,940 2,560 5,030 6,640 790 1,540 2.070 4.100

- Soybean (kg) 100 130 240 330 390 530 . - - -

Gross value of production /a (Rp0 0 0

) 64 100 158 250 377 598 48 120 126 320

Production costs, excludinglabor /a (Rp'

0Q

0) 13 18 33 45 82 111 12 22 32 60

Hired labor cost - Harvest /b (Ip'000) 6 10 15 24 39 62 6 14 15 38- Other /c (4p-OOO) - - _ _ 4 5

Net vslue of production (Rp'0 0 0

) 45 72 110 181 252 420 30 84 79 222

Land tax (IPEDA) /d (Rp'000) 1 2 4 6 9 16 1 3 3 7

Farm irrigation system OSM

costa /e (Rp'OOQ) - I _ 2 _ 5 _ _ _ 1

Payments to landlord /f (Rp'000) 22 34 51 84 117 192 14 39 37 104

Net crop income - Owner-operator (lp'000) 44 69 106 173 243 399 29 81 76 214- Sharecropper (Rp'000) 23 36 55 89 126 207 15 42 39 110

Other inco-e /e (Rp'000) 60 60 40 35 25 20 55 55 45 40

Net far. incoe - Owner-operator (Rp'000) 104 129 146 208 268 419 84 135 121 254

- Sharecropper (Rp'000) 83 96 95 124 151 227 70 96 84 150

Total labor requirements (man-days) 67 81 169 203 385 464 75 95 198 2554

/a Naed on Table 5

/b Calculated at 12% of gross production.

/c Based on a maximum 40 ean-day./sonth of fanily labor.

/d Average annual land tax rates/ha are now and with the project: Madi=n, Rp 7,000 and Rp 12,000; Ciujuog, Rp 4,000 and Rp 9,000.

/e For tertiary and quaternary units, annual 06l is estimated at Rp 3.900/ha at Hadiuu, and Rp 1,500/ha at Ciujung.

/Lf Landlord and sharecropper share equally gross production lesa harvesting and other production comat, except for the land tax which the landlord pays.

/R Based on interviews and Bank surveys.

ANNEX 13Page 1

INDONESIA

IRRIGATION VIII

Farm Labor Analysis

Labor Supply

1. Comprehensive and reliable statistics on population and laborforce in Madiun and Ciujung areas do not exist. Using data from localgovernment officials, the rural population is estimated at 1.1 millionin the MIadiun project area. This consists of about 150,000 farm familiesand 42,000 landless laborers' families. In Ciujung, the rural populationis estimated at 100,000, consisting of 11,500 farm families and 5,000landless laborers' families. Assuming each family supplies two full timeworkers, the total number of farm workers is 384,000 in Madiun, and 33,000in Ciujung. If each worker is available to work 240 days per year, or20 days a month, the total annual labor supply is 92.2 million man-daysin Madiun, and 7.9 million man-days in Ciujung.

2. The rural labor force is growing at 1.8% per year. Assumingthat the rural work force continues to grow at this rate at full projectdevelopment rural labor would total 459,000 in Madiun, and 39,000 in Ciujung.In Madiun this is equivalent to a labor supply of 110.2 million man-days ayear, or 9.2 million man-days a month, and in Ciujung 9.4 million man-daysa year, or 0.78 million man-days a month.

Labor Utilization

3. Table 4 gives estimates of average monthly and annuallabor requirements per ha for the various crops. As Madiun farmers alreadyintensively and expertly prepare the land and plant their crops, with orwithout the project labor requirements would not increase for these tasks.Without the project, labor requirements for crop management (weeding,fertilizer and pesticide application, irrigation), harvesting and threshingwould not increase for rice and soybeans, even though their yields areassumed to drop by 5 to 10%. They would, however, increase for farmer grownsugarcane because of the BTIIAS sugarcane program expansion. With the project,due to better water control, crop management techniques and higher yields,these activities would increase by up to 33% for rice and soybean.

4. In Ciujung, without the project, labor requirements would remainas at present. With the project, although farmers would save the time nowexpended on replanting their wet season rice after December-February floods,crop management, harvesting and threshing activities would increase by upto 40%.

ANNEX 13Page 2

5. Table 2 gives estimates of the total monthly and annual laborrequirements. The present annual requirements are 30.3 million man-days inMadiun and 1.4 million man-days in Ciujung, only 33% and 20% of the estimatedsupply respectively. Although the data is limited, this indicates the exten-sive underemployment in the areas. With full development of the project,annual labor utilization would reach 35.1 man-days in Madiun and 1.8 millionman-days in Ciujung, still only some 33% and 20% of the projected laborsupply. Without the project, however, the situation would be considerablyworse, with only 28% and 15% respectively of the available labor beingutilized.

6. In both areas the monthly requirement for labor has a pronouncedseasonal pattern, with peak requirements occurring in April-May. Neverthe-less, since even at full development, utilization would be only 55% in Madiunand 37% in Ciujung in these periods, there would be sufficient labor avail-able to meet peak monthly requirement.

Economic Cost of Farm Labor

7. Detailed information is limited on wages actually paid in theproject areas. Even if it were available, wages paid probably would notreflect the true cost of labor to the economy, for much of the work isdone by unpaid family labor or in exchange for work done by other farmers.In addition wage rates are frequently set by custom rather than marketforces, and labor mobility is limited. Therefore, the economic cost oflabor can only be roughly approximated. The average peak wage rate isRp 230/man-day in Madiun and Rp 200/man-day in Ciujung. However, unem-ployment is substantial even during this peak season, and this rate mostprobably does not reflect the economic cost of labor. Rather, it maybe that social custom and a recognition by employers of the laborer'ssubsistence needs that supports wages at this level. Data on nonpeakwages and on wages available from alternative types of employment duringthis period are also limited; generally, however, these wages are lowerthan peak season wages, and undoubtedly, the cost of labor to the economyis lower during these periods than during the peak season.

8. The following analysis attempts to estimate an opportunity costof labor in the project areas, taking into account generally prevailingrural unemployment and the large seasonal fluctuation in labor demand.It does not attempt to adjust for intertemporal or interpersonal incomedistribution effects nor to value leisure. The marginal opportunitycost of farm labor in the project areas can be approximated by S-shapedcurves (Charts 16940 and 16941).

9. Three straight-line segments can reasonably approximate eachS-shaped curve, with three points determining the curves' position. Point Aon the chart represents the minimum opportunity cost of farm labor andincludes the economic value of alternative employment (casual nonfarm labor),plus the value of additional food required because of the more strenuous farmwork with the project. From available information this opportunity cost isestimated at Rp 100/man-day in Madiun and Rp 90/man-day in Ciujung. Point Bindicates where the opportunity cost equals the market wage and rural labor

ANNEX 13Page 3

is fully employed, estimated at Rp 230/man-day in Madiun and Rp 200/man-dayin Ciujung. Point C indicates the point at which the wage rate is sufficientlyhigh that laborers are attracted to meet any increases in demand, thus, tothe right of this point the opportunity cost and market wage remain constant.For Madiun this wage is estimated at Rp 260/man-day; for Ciujung at Rp 230/man-day.

10. The monthly marginal opportunity cost may be read directly from thecurve at the corresponding level of labor utilization. With the project itvaries from Rp 104 to Rp 128/man-day in Madiun, and from Rp 91 to Rp 98/man-day in Ciujung. The total economic cost of farm 'Labor is the area under thecurve at each level of employment. Table 2 shows the future economic cost offarm labor with the project at full development and without the project.This table is summarized as follows:

Future Economic Cost of Farm LaborWith Project Without Project Incremental Cost

…---------------- (Rp million) ------------------

Madiun 3,731.4 3,207.7 523.7

Ciujung 167.9 129.8 38.1

These figures would be equivalent to pricing the incremental employment at ashadow wage rate of Rp 116/man-day in Madiun and Rp 93/man-day in Ciujung.For the total labor requirement at full development the average shadow wagerate would be Rp 106/man-day in Madiun, and Rp 92/man-day in Ciujung.

ANNEX 13Table 1

INDONESIA

IRRIGATION VIII

Total 1Nonthly Labor Requirem&ents for Crops ('000 man-days)

Area Jan. Feb. Mar. Apr. May. June July Aug. Sep. Oct. Nov. Dec. Total

(ha)

ladiun Rehabilitation Area

Wet seasonIrrigated Rice -P/a 65,700 2,431 2,300 657 1,642 1,380 657 - - - - 1,314 2,102 12,483

W 65,700 2,431 2,300 657 1,642 1,380 657 - - - - 1,314 2,102 12,483W 65,700 2,628 2,497 2,431 2,365 1,774 - - - - - 1,314 2,102 15,111

Dry seasonIrrigated Rice - P 15,500 - - - 232 605 852 233 248 620 - - - 2,790

15,500 - _ - 232 605 852 233 248 620 - - - 2,790W 15,500 - - 155 682 868 387 465 853 - - - - 3,410

Irrigated Soybean I /b - P 30,000 - - - 300 750 600 450 690 660 - - - 3,450W 30,000 - - - 300 750 600 450 690 660 - - - 3,450W 30,000 - - 300 750 750 600 750 900 - - - - 4,050

Irrigated Soybean II /b - P 35,500 - - - - 355 532 710 710 710 888 - 3,905W 35,500 - - - - - 355 532 710 710 710 888 - 3,905W 35,500 - - - - - 355 887 888 532 888 1,065 - 4,615

Irrigated Farmoer Sugarcane - P 2,700 27 27 62 197 365 373 286 173 89 62 27 27 1,715W 2,700 38 38 84 202 400 402 319 194 121 70 38 38 1,944W 2,700 38 38 84 202 400 402 319 194 121 70 38 38 1,944

Irrigated Factory Sugarcane - P 6,600 92 92 218 686 1,267 1,294 990 594 310 218 93 86 5,940' 6,600 92 92 218 686 1,267 1,327 1,023 594 310 218 93 86 6,006W 6,600 92 92 218 686 1,267 1,327 1,023 594 310 218 93 86 6,006

Total - P 156,000 2,550 2,419 937 3,057 4,367 4,131 2,491 2,415 2,389 990 2,322 2,215 30,283N 156,000 2,561 2,430 959 3,062 4,402 4,193 2,557 2,436 2,421 998 2,333 2,226 30,578N 156,000 2,758 2,627 3,188 4,685 5,059 3,071 3,444 3,429 963 1,176 2,510 2,226 35,136

Ciujung area

Wet seasonIrrigated Rice - P 5,700 200 228 85 114 114 142 - - - - 143 228 1,254

W 5,700 200 228 85 114 114 142 - - - - 143 228 1,254W 5,700 200 86 142 199 228 85 - - - - 143 228 1,311

Dry seasonIrrigated Rice -P 850 - - - 6 20 41 27 24 35 9 - - 162

W 850 - - - 6 20 41 27 24 35 9 - - 162W 2,300 - - - 28 60 83 80 103 117 35 - - 506

Total - P 6,550 200 228 85 120 134 183 27 24 35 9 143 228 1,416W 6,550 200 228 85 120 134 183 27 24 35 9 143 228 1,416W 8,000 200 86 142 227 288 168 80 103 117 35 143 228 1,817

/a P - PresentW - Future without projectW - Future with project

/b Soybean I = early crop planted after wet season paddy crop.Soybean II 2 late crop planted after early soybean crop or sugarcane.

INDONESIA

IRRIGATION VIII

Economic Cost of Farm Labor at Full Project Development (1986)

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total

Madiun

Labor Requirement W /a 2.7 2.6 3.2 4.7 5.1 3.1 3.4 3.4 1.0 1.2 2.5 2.2 35.1(million man-days) W 2.6 2.4 1.0 3.1 4.4 4.2 2.6 2.4 2.4 1.0 2.3 2.2 30.6

Marginal Opportunity Cost W 109 109 111 118 128 110 112 112 104 104 108 107 -(Rp/man-day) W 109 108 104 110 114 114 109 108 108 104 107 107 -

Average Economic Cost of Farm W 105 105 106 108 109 105 106 106 102 102 112 104 106Labor (Rp/man-day) W 105 104 102 105 107 107 105 104 104 102 104 104 105

Economic Cost of Farm Labor W 282.2 271.7 337.6 506.2 555.3 325.5 360.4 360.4 102.0 122.4 280.0 227.7 3,731.4(Rp million) W 271.7 249.6 102.0 325.5 470.8 449.4 271.7 249.6 249.6 102.0 238.1 227.7 3,207.7

Incremental Economic Cost ofFarm Labor (Rp million) W-W 10.5 22.1 235.6 180.7 84.5 -123.9 88.7 110.8 -147.6 20.4 41.9 0 523.7

Ciuiung

Labor Requirement W 0.20 0.09 0.14 0.23 0.29 0.17 0.08 0.10 0.12 0.03 0.14 0.23 1.82(million man-days) W 0.20 0.23 0.09 0.12 0.13 0.18 0.03 0.02 0.03 0.01 0.14 0.23 1.41

Marginal Opportunity Cost W 94 92 93 96 98 94 92 92 93 91 93 96 _(Rp/man-day) W 94 96 92 93 93 94 91 90 91 90 93 96 _

Average Economic Cost of Farm W 92 90 91 93 94 92 91 91 92 90 91 93 92Labor (Rp/man-day) W 92 93 91 92 92 92 90 90 90 90 91 93 92

Economic Cost of Farm Labor W 18.4 8.1 12.8 21.4 27.3 15.6 7.3 9.1 11.0 2.7 12.8 21.4 167.9(Rp million) W 18.4 21.4 8.2 11.0 11.9 16.6 2.7 1.8 2.7 0.9 12.8 21.4 129.8

Incremental Economic Cost ofFarm Labor (Rp million) W-W 0 -13.3 4.6 10.4 15.4 -1.0 4.6 7.3 8.3 1.8 0 0 38.1

la W = Future with project.W = Future without project.

ANNEX 14Page 1

INDONESIA

IRRIGATION VIII

Economic Analysis

Benefits

1. As Madiun rehabilitation, pilot groundwater development and Ciujungdrainage are distinct, separate groups of projects works, each has beenseparately analyzed. Benefits are estimated from the increased agriculturalproduction resulting from irrigation rehabilitation and construction at Madiunand the groundwater development, and improved drainage at Ciujung. Additionalbenefits would accrue at Ciujung because of reduced flood damage to 1,400 haof fishponds. Due to insufficient data, other reductions in flood damage,such as to public infrastructure (roads, bridges), could not be calculated,and thus were not included in project benefits. Annex 2 shows the expectedcrop yields, Annex 11 explains projected commodity and fertilizer prices asderived from Bank forecasts; Annex 12 gives the expected crop productioncosts and labor requirements/ha; while Tables 1 and 2 show the expected grossand net crop returns/ha (without accounting for labor). Chart 16987 shows theproposed cropping calendar. Table 3 shows the expected annual agriculturalbenefits at full agricultual development of the components.

Foreign Exchange

2. Due to the existence of import taxes, quantitative restrictions andexport subsidies, the official exchange rate of Rp 415 = US$1.00 misstatesthe economic value to the economy of foreign exch-ange used in carrying out theproject, and savings through increased grain production. Using the Squire-van der Tak approach,/l the estimated standard conversion factor for Indonesiais 0.8. This rate (Rp 520 = US$1.0) was used in the economic analysis.

Investment Costs

3. As calculated for the economic analyses and expressed in end 1977prices, the total investment costs are:

Madiun Rehabilitation. Rp 25,828 million (at official exchange rate,Rp 23,430 million). Estimated annual O&M costs would be Rp 5,000/ha forthe main system and Rp 3,900/ha for the tertiary units.

Groundwater Pilot Project. Rp 3,646 million (at official exchange rate,Rp 2,916 million). Pumps and engines, costing Rp 550 million, wouldhave to be replaced in years 12 and 22. Estimated average annual O&Mcosts would be Rp 27,900/ha.

/1 L. Squire and H.G. van der Tak; Economic Analysis of Projects; Baltimoreand London, The Johns Hopkins University Press 1975.

ANNEX 14Page 2

Ciujung Drainage. Rp 5,274 million (at official exchange rate,Rp 4,805 million). Estimated annual O&M costs would be Rp 5,000/hafor the main system, and Rp 1,500/ha at the farm level.

Investment costs have been adjusted to reflect the economic value of unskilledlabor used in construction (civil works reduced 5%). In determining theRupiah value of investment costs, foreign exchange costs were converted toRupiah using a standard coversion factor of 0.8 (para. 2). Costs includephysical contingencies, but exclude price contingencies.

Development Period

4. According to the project implementation schedule, development wouldoccur as follows:

Madiun Rehabilitation. 15% (11,300 ha) of the project area would becompleted by March 1978. The following dry season crop in 1978 would bethe first grown under upgraded conditions. Similarly, 40% (30,000 ha)would be completed by March 1979; 75% (56,300 ha) by March 1980, and100% by March 1981, and the following dry-season crop would be the firstgrown under upgraded conditions on each completed area.

Groundwater Pilot Project. Half of the area would be completed andready for initial use in April 1979, the remtainder of the area in April1980. The first crops grown under upgraded conditions would be the 1979and 1980 dry-season crops.

Ciujung Drainage. 15% (900 ha) of the project area would be completedin March 1978; 40% (2,300 ha) in March 1979; 75% (4,300 ha) in March1980; and 100% in March 1981. The following dry-season crops would bethe first crops grown under upgraded conditions on each completedarea.

5. Beginning with the first crop grown under upgraded conditions,farmers would achieve the projected yield levels over five years in equalinstallments. Madiun rehabilitation would reach full development in 1986/87;pilot groundwater developments in 1985/86; and Ciujung drainage in 1986/87.

Labor Pricing

6. Farm labor was evaluated at a shadow wage. This varies seasonally,and averages Rp 106/man-day at Madiun and Rp 92/man-day at Ciujung over theyear under "with" project conditions at full development, compared to a fullemployment market wage of Rp 230 and Rp 200 per man-day respectively.Annex 14 presents ia detailed analysis.

Economic Rate of Return

7. Using the foregoing assumptions and discounting project benefitsand costs over 30 years the economic rate of return is 21% for Madiun reha-bilitation (Table 4); 13% for the Groundwater pilot project (Table 5); and18% for Ciujung drainage (Table 4).

ANNEX 14Page 3

Sensitivity Analysis

8. Sensitivity of the rates of return was tested to cost overruns;reductions and delays in benefits; a 25% increase in project benefits;valuing of farm labor at the market wage rate throughout the year; andvaluing foreign exchange at the official exchange rate (Rp 415 = US$1.00).Except for the Groundwater pilot project, in none of the cases tested wouldthe rate of return fall below 14%. On the other hand, if the level ofbenefits are 25% higher than forecasted, the rates of return would be above20%.

AJNNEX 14Table 1

INDOYESIA

IRRIGATION VIII

Economic Analysis - Net Value of Production

Farm Gate Gross Value Production Net Value Net Benefit FromArea Yield Price of Production Cost la of Production Project Area(ha) (ton/ha) (Rp '000/ton) -- (Rp '000) -R--- __ (Rp million)

l(adiun Rehabilitation

Wet Season

Irrigated rice W/b 65,700 3.0 98 294 65 229 15,045W 65,700 4.2 98 412 78 334 21,944

Drv Season

Irrigated - Rice W 15,500 2.5 98 245 51 194 3,007

W 15,500 3.8 98 372 65 307 4,759

- Factory sugarcane 1W 6,600 110.0 18 1,980 186 1,794 11,840W 6,600 110.0 18 1,980 186 1,794 11,840

- Farmer sugarcane W 2,700 90.0 18 1,620 152 1,468 3,964W 2,700 90.0 18 1,620 152 1,468 3,964

- Soybean I 1c W 30,000 0.55 189 104 12 92 2,760W 30,000 0.8 189 15]. 20 131 3,930

- Soybean II W 35,500 0.4 189 76 11 65 2,308W 35,500 0.63 189 1lSI 19 100 3,550

Total W 156,000 38,924W 156,000 49,987

Incremental net benefit W-W 11.063

Ciuiung Drainage

Wet Season

Irrigated rice W 5,700 2.2 98 216 46 170 969'1 5,700 3.6 99 356 65 291 1,659

Drv Season

Irrigated rice W 850 2.6 98 255 31 224 190W 2,300 3.8 99 376 62 314 722

Total W 6,550 1,159

W 8.000 2,381

Incremental net benefit W-W 1.222

la Based on Annex 12, Tables 2,3. Production costs do not include labor.

LbW = future without project; W = future with project.

Le Soybean I = early soybean crop; Soybean II = late soybean crop.

INDONESIA

IRRIGATION VIII

Economic Analysis - Net Value of Production: Groundwater Pilot Project

Farm Gate Gross Value Production Net Value Net Benefit From

Area Yield Price of Production Cost /a of Production Project Area

(ha) (ton/ha) (Rp '000/ton) -…- - - (Rp '000) ______ (Rp million)

Wet Season

Irrigated rice W /b 2,500 4.2 98 412 78 334 835

W 2,800 4.2 98 412 78 334 935

Rainfed rice W 300 2.0 98 196 36 160 48

w _ _

Dry Season

Irrigated - Rice W 400 2.6 98 255 51 204 82

W 1,420 4.2 98 412 65 347 486

- Soybean I /c W 1,420 0.6 189 113 12 101 143

W 1,400 1.2 189 227 34 193 270

- Soybean II W - - - - - - -

W 1,400 1.2 189 227 34 193 270

Rainfed soybean W 120 0.44 189 83 11 72 9

w - -

Total W 4,740 1,117

W 7,000 1,961

Incremental net benefit 844

/a See footnote /a, Table 1.

/b See footnote /b, Table 1.

/c See footnote /c, Table 1.

INDONESIA

IRRIGATION VIII

Economic Analysis - Incremental Net Value of Agricultural Production at Full Project Development in 1986

Net Return to Project Area Incremental Less Incremental Incremental Net ValueWithout Costing Farm Labor /a Net Return Farm Labor Cost of Production------(Rp million) - (Rp million) (Rp million) (Rp million) (US$'000)

Without Project With Project

Madiun Rehabilitation 38,924 49,987 11,063 524 /b 10,539 20,267

Pilot Groundwater 1,117 1,961 844 72 /c 772 1,485

Ciujung Drainage 1,159 2,381 1,222 38 /b 1,184 2,277

/a From Tables 1 and 2.

/b From Annex 13, Table 2.

/c Calculated using average economic cost of farm labor in the "with" and "without" project situations ascalculated for Madiun Rehabilitation in Annex 13, Table 2.

H>M

4 M

ANNEX 14Table 4

INDONESIA

IRRIGATION VIII

Economic Costs and Returns(Rp billion)

Project Costs IncrementalYear Capital O&M Total Project Benefits

Madiun Rehabilitation

1 (1977/78) /a 4.13 0 4.13 02 (1978/79) 5.94 0.15 6.09 0.093 (1979/80) 6.72 0.38 7.10 0.444 (1980/81) 9.04 0.60 9.64 1.165 (1981/82) 0 0.67 0.67 2.426 (1982/83) 0 0.67 0.67 4.247 (1983/84) 0 0.67 0.67 6.468 (1984/85) 0 0.67 0.67 8.649 (1985/86) 0 0.67 0.67 10.06

10-30 (1986/87 - 2006/07) 0 0.67 0.67 10.54

Economic Rate of Return 21%

Ciujung Drainage

1 (1977/78) /a 0.63 0 0.63 02 (1978/79) 1.69 0.01 1.70 0.043 (1979/80) 2.00 0.02 2.02 0.214 (1980/81) 0.95 0.03 0.98 0.485 (1981/82) 0 0.04 0.04 0.816 (1982/83) 0 0.04 0.04 1.047 (1983/84) 0 0.04 0.04 1.138 (1984/85) 0 0.04 0.04 1.199 (1985/86) 0 0.04 0.04 1.24

10-30 (1986/87 - 2006/07) 0 0.04 0.04 1.25

Economic Rate of Return 18%

/a Indonesian financial year, April 1 to March 31.

ANNEX 14Table 5

INDONESIA

IRRIGATION VIII

Economic Costs and Returns: Groundwater Pilot Project(Rp million)

Project: Costs IncrementalYear Capital 0&M Total Project Benefits

1 (1977/78) 550 0 550 02 (1978/79) 1,280 0 1,280 03 (1979/80) 1,816 45 1,861 1204 (1980/81) 0 78 78 3005 (1981/82) 0 78 78 4206 (1982/83) 0 78 78 5307 (1983/84) 0 78 78 6508 (1984/85) 0 78 78 750

9 - 11 (1985/86 - 1987/88) 0 78 78 77212 (1988/89) 550 78 628 772

13 - 21 (1989/90 - 1997/98) 0 78 78 77222 (1998/99) 550 78 628 772

23 - 30 (1999/00 - 2006/07) 0 78 78 772

Economic Rate of Return 13%

ANNEX 14Table 6

INDONESIA

IRRIGATION VIII

Sensitivity Analysis

Madiun Groundwater CiujungRehabilitation Pilot Project Drainage___________________ (% )… - --------------

Best estimate 21 13 18

Construction costs increased 20% 19 10 15

Benefits delayed by two years 19 12 17

Construction costs increased by20% and benefits delayed bytwo years 16 10 14

Benefits decreased by 25% 17 9 14

Benefits increased by 25% 25 16 22

Farm labor valued at market wagerate throughout the year 20 11 16

Foreign exchange costs valued atofficial exchange rate 19 10 16

ANNEX 15Page 1

INDONESIA.

IRRIGATION VIII

Cost and Benefit Recovery

1. The annex examines the implications for public revenues and farmers'incomes of the Government's policies towards the recovery of the capital andrecurrent costs of the project. In determining the extent of cost recoveryand the relation of project charges to benefits, two indices have been used,which are defined as follows for the present project.

(a) Cost Recovery Index: the ratio of the present worth ofincremental project charges paid by project farmers to thepresent worth of incremental project construction andoperation and maintenance costs; and

(b) Rent Recovery Index: the ratio of the present worth ofincremental project charges paid by a typical farm familyto the present worth of incremental "project rent" accruingto the family before paying project charges, where "projectrent"' is defined as net incremental income less incrementalvalue of family labor, general taxes, returns to management,and incremental investments, and allowances for uncertainty andmiscellaneous costs.

The upper limit of the rent recovery index is 100%, but it would normally beless than that because of political difficulties, tax disincentives, and thecost of collecting the taxes. Rent is a difficult concept to measure in prac-tice but an attempt is made to determine reasonable quantitative estimates ofits various components based on qualitative considerations.

2. All water charges, costs and benefits are measured at presentvalues discounted at 10% annual rate of interest over the 30-year evaluationperiod of the project, and in terms of end-1977 constant prices. Costs andbenefits represent financial flows.

3. Farmers pay a land tax (IPEDA), and water charges for the operationand maintenance of the tertiary and or quaternary unit. Incremental IPEDAcan be considered a direct project tax, which contributes towards the opera-tion and maintenance, plus capital repayments, on the main irrigation system.The IPEDA rate varies depending on the quality of the main irrigation system.Similarly, the tertiary/quaternary unit water charge would vary accordingto the development of the tertiary unit. For example, at Madiun where ter-tiary and quaternary canals and drains would be constructed under the project,this charge would be higher than at Ciujung, where only minimum tertiarycanal and drain construction, which farmers could construct on their own,would be done under this project.

A1INEX 15Page 2

Cost Recovery

4. Madiun. In the cost recovery analysis, US$60.5 million constructioncosts are charged against Madiun rehabilitation. This includes US$48.4 millionbase cost estimate plus US$12.1 million physical contingencies. Annual incre-mental O&M costs would average Rp 3,000 (US$7)/ha for the main system. Atfull project development, annual incremental project charges would be Rp 8,900(US$21)/ha. Discounted at 10%, the present value of incremental constructionand O&M costs are US$46.3 million, and incremental project charges US$13.0 mil-lion, giving a 28% cost recovery index.

5. Ciujung. US$12.0 million construction costs are charged againstCiujung drainage. This represents US$9.6 million base cost estimate plusUS$2.4 physical contingencies. Annual incremental O&M costs would averageRp 3,000 (US$7)/ ha for the main system. At full project development, annualincremental project charges would be Rp 6,500 (US$16)/ha. Discounted at 10%,the present value of incremental construction and O&M costs are US$9.6million, and incremental project charges US$0.9 million, giving a 9% costrecovery index.

Rent Recovery

6. Madiun. At Madiun, rent recovery indices are calculated forowner-operators and sharecroppers on 0.2 ha, 0.5 ha and 1.3 ha farms. Thesesizes represent small, average and large farms. Table 1 lists the assumptionsused in calculating project rent. Discounting incremental project rent andcharges at 10% over 30 years, the rent recovery indices vary from 74% to 100%for owner-operators; and 13% to 31% for sharecroppers (Table 1).

7. Ciujung. Similarly, at Ciujung rent recovery indices are calculatedfor owner-operators and sharecroppers on 0.3 ha and 0.8 ha farms. These sizesrepresent small and large farms. Rent recovery indices are 31% and 34% forowner-operators, and 6% and 4% for sharecroppers (Table 1).

Water Charge Policy

8. No increase is proposed in the projected land taxes and watercharges farmers would pay under the project. The project charges in theMadiun area are considered satisfactory. At Ciujung, even though owner-operators would have rent recovery indices less than 50%, no increases areproposed in charges. At present some 90% of the project area's farm familieshave per capita incomes below the absolute poverty level of US$95 (1975prices), and at full project development some 70% of all farm families percapita incomes would still be below this figure. Besides paying a substan-tial total land tax, Rp 9,000 (US$22)/ha, irrigators would pay at least10% of their gross value of production in village taxes, as well as contri-buting to the social life of the village through Mosque taxes, compulsoryfeasts, and allowing all village members, if they wish, to partake in theharvest of the farmer's paddy crop. The harvester retains up to one fifthof the crop as payment, a wage rate considerably higher than the averagemarket rate.

ANNEX 15Page 3

9. Sim41arly, as even at full project development practically allsharecropper families would have per capita incomes below the absolutepoverty, the low rent recovery indices for this group are most appropriate.

INDONESIA

IRRIGATION VIII

Rent Recoverv(Rp '000)

Typical FarmMadiun Rehabilitation Ciuiuma Drainma&

0.2 ha 0.5 ha 1.3 ha 0.3 ha 0.8 haOwn. Oper. Sharecr. Own. Oper. Sharecr. Own. Oper. Shareer. Own. Oper. Sharecr. Own. Oper. Sbaracr.

A. At Full Development

1. Incremental - Gross value of farm production /a 29 15 76 38 180 90 61 31 165 832. - Less cash production costs /a 6 3 14 7 35 18 15 8 43 223. - Equals net cash income 23 12 62 31 145 72 46 23 122 61

4. - Less imputed family labor cost /b 3 3 6 6 13 13 3 3 9 95. - Less imputed farmer's management /c 1 1 4 2 9 5 3 1 8 36. - Less imputed return on own capital /d 6 - 18 - 47 - 12 - 32 -

7. - Less allowance for risk/uncertainty /e 6 3 15 8 36 18 12 5 33 128. -Less general taxes /f 3 2 8 4 18 9 6 2 17 69. -Less miscellaneous g. 1 1 4 2 9 5 3 1 8 3

10. Equals Project Rent 3 2 7 9 13 22 7 11 15 28

11. Incremental - Water charges (0&M) 1 0.5 2 1 5 3 0.5 0.5 1 112. - Land taxes (IPEDA) I - 3 - 7 - 2 - 4 -

13. - Total direct charges 2 0.5 5 1 12 3 2.5 0.5 5 1

B. Discounted Flows Over Project Life /h

14. Project rent 23 16 54 70 101 171 54 85 117 21715. Water charges 9 5 19 9 47 28 5 5 9 916. Land taxes 8 - 23 - 54 - 12 - 31 -

17. Total direct charges 17 5 42 9 101 28 17 5 40 9

18. Rent Recovery (X) 74 31 78 13 100 16 31 6 34 4

/a Figures from Annex 12, Tables 6 and 7.

/b Wage rate Rp 230/mn-day at Madiun, and Rp 200/man-day at Ciujung.

/c At 5% of incremental gross value of farm production.

/d At 10X of farmer's own incremental capital.

fe At 20X of incremental gross value of farm production.

/f Village taxes, at 10% of incremental gross value of farm production.

/g Storage losses at 5% of incremental gross value of farm production.

/h Net present value of project rent and incremental charges, which are discounted at 10% per year over the project life (30 years).

1E1

INDONESIAIRRIGATION PROJECT VilI

PROSIDA SUB-PROJECT ORGANIZATIONFOR MADIUN REHABILITATION AND CIUJUNG DRAINAGE

r ~~~~~~1/SUB-PROJECT Lmmumufmmmmuuhmmummuumuhummhummuuuummuu PROVINCIAL

MANAGER ADVISORY GROUP

2/:

CONSULTING I DEPUTY SUB-PROJECT

ENGINEERS MANAGER

I I~~~~~~~~~~~27DEPUTY _ DEPUTY

DEPUTY 0 & M ENGINEERING ADMINISTRATION

2/ 2/ 2 SURVEY & - _ MCANICL

DESIGN CONSTRUCTION UNIT ADMINISTRATION FINANCE COMPTROLLER

0 & M SECTIONS

1/ PROVINCIAL STAFF2/ PROSIDA STAFF World Bank-8964

INDONESIA IRRIGATION PROJECT VilIPROSIDA

MANAGEMENT ORGANIZATION

DIR. GENERALWATER RESOURCES

DEVELOP

*|GEN. MANAG. -_ ADVISR G°P

PROSIDA

CHIEF l l CHIEF CHIEF

| ENGINEERING | | OP. & MAIN. ADMIISTR.

. ~~~ENG./CONSTRUC. ENG./URV.DS

ASST. TO THE ASST. FORST. FOR ASST.FO

GEN. MANAG. ESUPERV. CONST.|S.EF

ASST. FR ASST. FOR ASST. FOR l _ ST O

BUILDIGFC| DESIGN HYDROLG | GE.AFI

| ASST. FOR ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~O

CONSULTANT E sSUB. PROJECT SUB. PROJECTS SUB. PROJECTS SUB.TPRUB PROJEC CNSL~TANTI

FOR MADIUN (E-SERIES) A-SERIES C-SEERSI D-SERESFOR CIREBONIIWRld BEEANk-GT.

World Bank-16008

INDONESIAIRRIGATION PROJECT Vill

WATER RESOURCES ORGANIZATION CHART

[ MINISTER OF PUBLIC WORKS

AND ELECTRIC POWER

'I'll~DIRECTOR-GENERAL OF

WATER RESOURCESDEVELOPMENT

DIRECTORATE OF DRCOAEDRCOAEIETRTEDIRECTORATE OF DIRECTORATE OFPLANNING AND DIRECTORATE DIRECTORATE OF DIRECTORATE IRRIGATION RESEARCH OF

PROGRAMMING OF RIVER SWAMPS OF IRRIGATION EQUIPMENT WATER PROBLEMS

| AT PROSIDA

World Bank-16017

INDONESIAIRRIGATION VIII

ESTIMATED OPPORTUNITY COST FOR FARM LABOR: CIUJUNG

250

C

200

~-150

0

0a- 100al A0

50

50

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

Farm Labor Utilization (million man-days/month)

World Bank-16940

INDONESIAIRRIGATION VilI

ESTIMATED OPPORTUNITY COST FOR FARM LABOR: MADIUN

C

250 - B

200 -

C

co

150_,.

-y

CL

15050

0

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0

Farm Labor Utilization (million man-days/month)

World sank-16941

IRRIGATION VliIMADIUN REHABILITATION

PROJECTED CROP CALENDAR

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

WET SEASON PADDY 123,^ ....

DRY SEASON PADDY 34,400 h

12,900 ha

SUGAR CANE

PALAWIJA I 68,030 ha

PALAWIJA 11 50,770 ha

LEGEND

NURSERY PERIOD IRRIGATION PERIOD DRYING UP FIELDzI L.l_

I l

I1-G ROWI NG PE R IOD

World Bank-16987

INDONESIA

IRRIGATION VIIIMADIUN GROUNDWATER PILOT PROJECT

WATER BALANCE CHARTBALONG SCHEME - AREA 'A'

J I F M A M I J J| A S 0 N D Total

1 st Paddy \ 30h _ \780 ha \ Soybeans Peanuts

_ & < 390 ha \\ 390 ha

Crop Water Requirement, (mm)*

1st Paddy 0.76 0.47 0.41 - _ _ _ _ _ _ 0.77 2.00 441

2nd Paddy _ - 0.14 1.23 0.86 0.77 0.14 _- - - - 314

Soybeans 0.38 0.7 _ _ _ _ 45

Peanuts _- - 0.60 0.28 _ - 88

(mm) 0.76 0.47 0.55 1.23 0.86 0.77 0.52 0.7 0.60 0.28 0.77 2.00 -

m m3/sec) 0.22 0.15 0.16 0.37 0.25 0.23 0.15 0.02 0.18 0.08 0.23 0.58 -

Available surface water (m3/sec) 0.14 0.22 0.34 0.35 0.19 0.11 0.07 0.06 0.05 0,07 0.11 0.21 -

Project water requirement (m3/sec) 0.08 - - 0.02 0.06 0.12 0.08 - 0.13 0.01 0.12 0.37 -

All crops, growing season

L i-,::,::: -Paddy, drying of paddy field and harvesting

Remarks:Crop water requirement is net of consumptive use, effective rainfall, puddling and nursery requirements and losses, andis based upon data derived for Madiun Rehabilitation Project. r

** Estimated from discharge records at the head of Sungkur Kidul canal system to be available in 3 years out of 4.* Total crop water requirement less available surface water

World Bank-16988

INDONESIAIRRIGATION Vill

MADIUN GROUNDWATER PILOT PROJECTWATER BALANCE CHART

BALONG SCHEME -AREA 'B'

J I F M A M J J A S 0 N D Total

2nd Paddy 500 ha

1st Paddy .::>.250 ha

500 ha Soybeans Peanuts250 ha 250 ha

Crop Water Requirement (m3/sec)

1 st Paddy 0.75 0.48 0.16 - - _ _ 0.78 1.98 415

2nd Paddy - - 0.16 1.24 0.86 0.73 0.16 - 315

Soybeans _ _ 0.5 0.43 - _ _ 48

Peanuts _ - 0.62 0.27 _ 89

( mm)* 0.75 0.48 0.32 1.24 0.86 0.73 0.21 0.43 0.62 0.27 0.78 1.98 867

Ttl(m3 /sec) 0.14 0.10 0.06 0.24 0.16 0.14 0.04 0.08 0.12 0.05 0.15 0.37

Available surface water (m3 /sec) * 0.24 0.32 0.29 0.26 0.07 0.04 0.03 _ _- - 0.04 -

Project water requirement (m3 /sec) * _ 0.09 0.10 0.01 0.08 0.12 0.05 0.15 0.33 -

mZj All crops, growing season

E Z Paddy, drying of paddy field and harvesting

Remarks: *Crop water requirement is net of consumptive use, effective rainfall, puddling and nursery requirements and losses, andis based upon data derived for Madiun Rehabilitation Project.

Estimated from discharge records at the head of the Kedung Celeng canal system to be available in 3 years out of 4. World Bank-16989* Total crop water requirement less available surface water.

INDONESIAIRRIGATION VIIl

MADIUN GROUNDWATER PILOT PROJECTWATER BALANCE CHART

TANON SCHEME

i J |F M A I M J | i A S O N D Total_ _ _ .. ,_ _ .~___

2nd Paddy1 st Paddy .150 ha300ha

Peanuts Maize150 ha 150 ha

Crop Water Requirement (mm)

1st Paddy 0.98 0.48 0.9 - - - - 0.69 2.05 429

2nd Paddy _ _ 0.18 1.38 2.68 2.25 0,18 _ - - 667

Peanuts _ _ _ - 1.21 _ 0.18 - - _ _ 139

Maize _ -_ - 0.18 1.90 2.68 476

TOTAL (mm) 0.53 0.28 0.10 0.40 0.75 0.98 0.03 0.08 0.52 0.72 0.38 1.13 1711

Project Water Requirement (m3 /sec) 0.11 0.06 0.02 0.08 0.15 .20 0.01 0.02 0.11 0.15 0.08 0.23 -

I All crops, growing season

Paddy, drying of paddy fields and harvesting

Remarks: * No surface water supply presently available in the area. World Bank-16990Crop water requirements is net of consumptive use, effective rainfall, puddling and nursery requirements andlosses, and based upon data derived for Madiun Rehabilitation Project.

INDONESIAIRRIGATION Vill

MADIUN GROUNDWATER PILOT PROJECTWATER BALANCE

CARUBAN SCHEME

J F I | A M J J A S 0 N D Total

_ fl i \> ~2nd Paddya i\

1 st Paddy t | \600 ha X

1,140 ha \ Soybeans Soybeans

s v |\ 540 ha X |\ 540 ha _ a

60 ha Sugarcane

Crop Water Requirements (mm/sec)1

_== ==

lst Paddy 75 49 43 - - - - - - - 77 200 444

2nd Paddy - - 27 246 174 151 27 - - - - - 625

lst Soybeans _- - - - - 80 10 90

2nd Soybeans _- - - - - 5 124 53 - - - 182

Sugarcane - 5 12 55 50 50 45 37 75 65 25 - 419

1,760

mm) 75 54 82 301 224 201 157 171 128 65 102 200 -

(m3/sec) 0.32 0.23 0.24 0.57 0.39 0.42 0.29 0.35 0.21 0.06 0.37 0.85 -

Available surface water (m3 /sec)

2 0.42 0.43 0.23 0.26 - - - - - - 0.10 0.35 -

Project water requirement (m3/sec)3 - 0.01 0.31 0.39 0.42 0.29 0.35 0.21 0.06 0.27 0.50 -

Paddy, drying up of paddy field and harvesting | I\ All crops, growing season

Remarks:'Crop water requirement is net of consumptive use, effective rainfall, puddling and bursery requirernents and losses, and

is based upon data derived for Madiun Rehabilitation Project.2Estimated from discharge records at the head of Notopuro canal system in the year with 70% dependability.3Total crop requirement less available surface water.

World Bank-17144

INDONESIAIRRIGATION VilI

IMPLEMENTATION SCHEDULE

RIADIUN GROUNDWATER PILOT PROJECT AND FEASIBILITY STUDIES

~~~~~~~~~~~~~~~----NEW CONSULTANT CONTRACT__________________________________

YEAR 1971978 1991980 1981 1982 1983

MONTH ii A SID N Di F A Mi 7 A SO ND iF MA M ASIOINI IF MA MIJ ~J A SN Di JP M A Mi JASNDJFMMifD M iJAO

PROGRESSIVE MONTH NUMBER 1.34-5675- 123455I55 1224 5 6 7 6 9 1 2 3 4 5 6 7 8 9 123455759 1 2 3 a 7 8 224 759 1 4 S 6705 23

ACTIBITY reasibility Report, Grourud Water

UNDER CURREN CNUTTCNTRACTA Main Report Madiun Solo Gros.rd WaeleP Additional Drillhng Campaign ....

C Supplementary Report OTn Ground Water

PILOT SCHEMES (5000 ha) and FEASIBI1LITY

STIJDY of L.ARGE SCALE DEVELOPMENT

1 Drilling Equipmentl.a Te,nder Docume.nts - to - Le.tter of Credit

UNDER NEW CONJSULTAPdT _CONTRACT

tIn, Drilling equipmenrrmanufacture -to -site dlvr

Ia 2 Drilling Operations2.a Accent r-ds construction

o 2.h Drilling Balong 19 wells2.c Drilling Caruban I 1 WeJJn

0 3 Poepsp (33) for Pilot Schemes Wells3a Tender Doc.nrsters -to- stil delivery _10

4 Pomer for Pilot Schemesx 4a Tender Documents -10- site delivery

4.b lootallati-nof0 power

5 GeohydrologySo Data collection - reiew - -anaYsisw om

A.b Pimnp te,sts -no installativo Production pumpsS. Comnputer analysisS.d Plannrirrg large scale Groun,d Water Devpeomnot

-

B Topography6Eu Survey & Mopplng 2800Ir

7 Irrigationl.a Dorta collection arrd study7.bn Plan - clesigr, 2800 noha goir systems7.c Corrstruetion irrigation 21100 ha7.d Large scale :rrigation development study

B Hydrology

91 Agronomy - Extension

10 Agro-Ec,nomy m

It Pilot Schenmes OperationeCr

12 Feasibility Large Scale GD..ond Water De..elopment Bl

Consultant SpecialistsI G,nhydrologist, Se.nivr2 Gnonydtviogist, Junvr ...

"t 3 Drilling Supervisvr, Svvivr ......

, 4 Drl1Kng Jues<v,i.Jtnivr

5 Hydorlogisto E Pect, ic Eng ner

.. g Agro-Scvnomisr

11 Cor,str.c,tiOrr SL p-rvuorz 12 Cvmputer Specialist

c2 13 ReLdnrrr Manager Ma

- 14 PrIcct SPonsor< 15 00rre Specialists as rnyulndl

1 6t H o m e, S op p v rt

Worisd Bank-16991

7 i Rairry Snason Nv-rnbmer thrrough May Current Corgultant Contract

INDONESIA

IRRIGATION VilIMADIUN REHABILITATION

IMPLEMENTATION SCHEDULE

Indonesian Fiscal Year 76-77. 1977-78 1978-79 1979-80 1980-81 1981-82WORKS

J1FMAMJJ11AS OINDIFI AM JJ ASUNID J F MiA MJJASON1JIFMIAIMJ JAlSONJDJj MAIMJ J AlSON

MAPPING AND DESIGN S

TERTIARY SYSTEMSECNDAR

TERTIARY SYSTEMS~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

ROADS AND BRIDGES mmu m

ONS~~ ~~~~~~~~~~~ ~ ~~~ ~~~~~~~~~~~~~~~~~~~ _ | S jt0 0

BUILDINGS AND COMMUNICATIONS

|E 7| Rainy Season November through May

I NDONESIAIRRIGATION Vill

CIUJUNG DRAINAGE PROJECT

IMPLEMENTATION SCHEDULE

Indonesian Fiscal Year 76-77' 1977-78 1978-79 1979-80 1980-81 1981WORKS

JIF AMJJAISOROJ AMJJASQNI.., okb JFA.MJ JA S oNDJ:FMMJJA SO0N jf AJ J A SON

MAPPING AND PLANNING

CONSULTANT DESIGN AND SUPERVISION

ROADS AND BRIDGES

RIVER EARTHWORK :T

DRAiNAGE STRUCTURES

DRAINS

VEHICLES AND EQUIPMENT

Rainy Season November through May

INDONESIAIRRIGATION VilI

MADIUN GROUNDWATER PILOT PROJECT ORGANIZATION

DIR. OF PLANNINGAND PROGRAMMING

GENERAL MANAGER

DEPUTYGENERAL MANAGER

SUBPROJECT MANAGER - ADVISORY BODY

r ------------ __. I

CONSULTANT | ASSISTANT TREASURERC ADMINISTRATION RER

. ......... ...... ISUPERVISOR ENGINEERING SUPERVISOR LOGISTICS

SURVEY PROJECT& DESIGN OPERATION EQUIPMENT SUPPLY WORKSHOP

DIVISION DIVISION DIVISION DIVISION DIVISION

World Bank-17135

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106°10'E |10620'1 _ I M I MARCH 1977

IBRD 12634111 00' 111 15' 111 30' 111°45' ARCH 1977

INDONESIA

; MADUN ,, .,,,IRRIGATION PROJECT MIEI9 :) tJ>V :----, 1-, MADIUN REHABILITATION AND GROUNDWATER PILOT PROJECT

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PEKALEN-SAMPEAN SUBPROJECT-7°30' CREDIT 289 IND

- Boundaries of aerial photo-graphic coverage

Pasurusn ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Boundaries of semi-controlledsuruan mosaics

S- Y ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Boundaries at aerial photo-graphic mapping in progress

~IU0T under Loan 1100 INDirolbolinggo ,/~t Stzn LudronlONr ~~~~~~~~~~~~~~~~Rice field areas

,,_ saks_n :Roads

Railways

Rivers

BonJ d o .. * / - ---- District boundaries

_8000'j7 ~~L U M A Jg A N G . - \80'-8100'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~00

l' <,_ ; ~~~~~~~~~~~~~~~~~~~~B O N/ D: 0O W O S O 0

ToPon6rogo MA5Jronsr.gs t r?;? ,2 t X A Ll

100 20 ANnl+er V A- BAL \ \uM A

1130200I 1131301 114030

SUATR 1;2' KALIMANTAN SULAWESi-83 <; .> r l 8°0

-'f" Grcljagan.

J A V A MADURA 7

o 100 200 300 KILOMETERS BA SUAW_~~~~~~~~~ ~~~~~~~LOMBOK 1,00 11-0

o 100 2 0 0M IL ES , 16° 2o 11°0 11 3

INDONESIAIRRIGATION PROJECT VIII

Mapping on Prosida SystemsLOAN 1100 IND IBRD 12640

00. CAN AN A OUtAWLO, OW2A IA&AO 1920 11740 APCI 1977~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~PRL 97

&AA '\ roiqotion OrAICAI~~~~~~~~ bAnoryC2'B-id.ry of -Cr o phOtoraphy n prog, COO ACd; I o1000 N rrigCti- Projeci b-unory

i;d,y.- phtg~h -pp R_3. f.> 4., .

N= ., R ce >9' i __;:ud-;fE8cdblezO Cr =9 Hoandory of Ge Al pnotogropnoCOp0 roj;hn; thbto oN.-s U POAGbresA S Ra ways CCr0Afi Vig * 0

4 - Bot;ro ry n of aer al photogrophio -O O Rivder Losn 100 ND

oaUCOOSO 013Cm -otrAl ed m C 5\ l I ndC L-AC 1268 IND -- -A COON

:' IonNors nH </4_ prog r aon 10S IRtl

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0108-00' lo-0 /nCjlnOI8C0p/o11 0N _011-

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IBRD 12641SMTR 1E20 KALIMANTAN 116 SULAWESi ) MAY 1977

SUMAT ERA'- -4- Nortk. Sadong INDONESIA

IRRIGATION PROJECT VI[fMapping on Prosida Systems

NORTH SADANG SUBPROJECTJ A V MADURA lOAN 1268 IND

0 100 200 300KILOMETERS BALI 'UMWA t - - Main canalsLOMBOKNwccnl

O 100 200 MILES 2. New canals119°30'- Drains

To Cenrana Z Rivers

Rice field area3'30' Roads 3030

-\ Boundary of aerial photographiccoverage

Boundary of mosaic without contours

8 t S~~ungin - = )

Lape

0.~~~~~~~~~~~~1

K ILOME TERS

I r ! [~~~~~~o2 4 6

MILES To Roppong119130' TO Ujung Pandan~194