Report No. 307-IND FILE (A PAppraisal of FOPYJatiluhur Irrigation Extension ProjectIndonesiaMay 31, 1974

Asia Project DepartmentIrrigation and Area Development Division I

Not for Public UseU

Document of the International Bank for Reconstruction and DevelopmentInternational Development Association

This report was prepared tor official use only by the Bank Group. It mav notbe published, quoted or cited without Bank Group authorization. The Bank Group doesnot accept responsibility for the accuracy or completeness of the report.

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-CURRONCY EQUIVALENTS

US$1.00 Rupiahs (Rp) 415Rp 100 US$0.241Rp 1 million 2 US$2,409.64

WEIGHTS AND MEASURES - METRIC SYSTEM

1 millimeter (mm) = 0.039 inchesI meter (m) = 39.37 inches1 kilometer (km) 2 = 0.62 miles1 square kilometer (km ) 0.386 square miles1 hectare (ha) 3 = 2.47 acres1 cubic meter (m ) - 35.31 cubic feet1 million cubic meters (Mm ) - 810.6 acre 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

ABBREVIATIONS

BIMAS - A farm input package and credit programINMAS - A program to encourage use of agricultural inputs

outside BIMASBRI - People's Bank of Indonesia (Bank Rakyat Indonesia)BULOG - Government agency for purchase and distribution

of nine essential commditiesGOI - The Government of IndonesiaMOA - The Ministry of AgricultureMPWEP - The Ministry of Public Works and Electric PowerMEFI - The Minister of State for Economy, Finance and IndustryPROSIDA - The organization within DGWRD responsible for IDA

Irrigation and Rehabilitation ProjectsDGWRD - Directorate General of Water Resources DevelopmentCRIA - The Central Research Institute for AgriculturePPL - Field Extension workers for agricultural services

at village levelMPK - Extension program workers at sub-district levelPTD - Agricultural service workers at village levelHYV - High yielding variety0 & M - Operation and MaintenanceIPEDA - Land tax based on potential productivityNVP - Net Value of Production

CONVERSION FACTORS FOR RICE

1 ton "dry stalk paddy" - 830 kg paddy ("paddy gabah")= 520 kg milled rice

INDONESIA FISCAL YEAR

April 1 - March 31

INDONESIA

APPRAISAL OFJATILUHUR IRRIGATION EXTENSION PROJECT

TABLE OF CONTENTS

Page No.

SUMMARY AND CONCLUSIONS ................................ i-ii

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

II. BACKGROUND.... 1

General .... 1The Agricultural Sector. . 2Irrigation Development in Indoresia ..... 3The Existing Jatiluhur Project 4

III. THE PROJECT AREA .................. .. ...... .. 5

Gweneral ...................... 5Climate . ............... 5

Topography, Soils and Drainage. 5Farm Size and Land Tenure . . 6Existing Irrigation Facilities . .6

Agricultural Production .. 7Transportation................... 7

IV. THE PROJECT . 7

Project Works..... 7

Water Demand, Supply and Quality... 9Engineering Design .... ... 10

Construction Schedule .... 10C'ost Estimates ................... 10

Financing ... 12Procurement and Contracts 12Disbursement.. 13Accounts and Audit ...... . ...... ... 13

Environmental Effects . . .13

V. ORGANIZATION AND MANAGEMENT ..... . . .14

Project Management . .. O ................. 14

Implementation of Project Works .... 16Pilot On-Farm Development Areas .16Agricultural Development and Supporting Services 16Training .18Consulting Services .18

Operation and Maintenance ................. 1 ....... 19Recovery of Costs. 20

This report is based on the findings of an appraisal mission comprisingMessrs. K. Pranich, H.M. Kim, R.C. Manning, R.R. Morton and S. Okabe (IDA).

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Page No.

VI. E'RODUCTION, MARKET PROSPECTS, PRICES AND FARMINCOME .............................. ! ... 21

Production ........... ............................ 21Market Prospects ............. .................... 22Prices ........................................... 22Fam Income ..................................... .23

VII. BENEFITS AND JUSTIFICATION ..... ........................ 24

VIII. AGREEMENTS REACHED AND RECOMMENDATIONS .... ............ 26

ANNEXES

1. Climatic Data2. Agriculture3. Project Works4. Water Supply and Demand

Appendix A - GOI Policy Statement on the Operation ofJatiluhur Reservoir

5. Construction Schedule6. Cost Estimates7. Equipment List8. Schedules of Expenditures and Disbursements9. Training

10. Draft Terms of Reference of ConsultantsAppendix A - Drafts Terms of Reference of Specialists

11. Operation and Maintenance12. Yields and Production of Crops13. Marketing and Prices14. Crop and Farm Budgets15. Farm Labor Analysis16. Economic Analysis

CHARTS

Design and Construction Schedule No. 79100 & M Organization (Irrigation) of Jatiluhur Authority No. 7851

MAPS

General Map No. 10524Irrigation and Drainage System No. 10525Roads and Agricultural Zones No. 10526

INDONESIE 307-IND

PROJET DE DEV LOPPEMENT DU RESEAU DIIRRIGATION DE JATILUHUR

Le gouvernement indon6sien a demande l'assistance financiere deltIDA pour l'aider a financer un projet dtirrigation. Liagriculture, quiest le secteur predominant dans ce pays, entre pour plus de la moitie dansle PIB, fournit les deux-tiers des emplois et presque la totalite -des exportations non p6trolieres. Le riz constitue un tiers de la valeurde la production agricole, mais l'Indon6sie n'en produit pas suffisammentpour satisfaire la demande de cet aliment essentiel. Les importationsont oscillg entre 500.000 et plus de un million de tonnes ces dernieresannees. Le premier Plan quinquennal 1969/73 a donn6 la priorit6 a laug-mentation de la production de riz par ltutilisation de facteurs de produc-tion modernes (semences ameliorees, engrais et pesticides) ainsi que parla remise en 4tat des systames dtirrigation. Le Deuxieme Plan quinquenmal1974/78 maintiont la priorite attachee a la risiculture mais prgvoit egale-nent une augmentation substantielle des autres cultures vivrieres.

LiAssociation a accord6 quatre credits pour la remise en 6tatdea systemes dtirrigation. Ce projet serait le cinquieme et utiliseraitle reservoir existant ainsi que les principales installations situ6es surle canal. Ces dernieres sont actuellement r6parees dans le cadre dudeuxi4me projet de remise en etat des reseaux dlirrigation, financ6 par1IDAL au titre du credit 195-IND.

Sont inscrits dans le projet la luttre contre les inondations,desinstallations dtirrigation et de drainage, ltassechement de marais, la cons-truction de routes de desserte et l'am6lioration des services agricolesaux exploitants. Ces mesures visent l'augmentation du rendement et larealisation de recoltes doubles pour les cultures vivrieres, principalementle riz, dans une zone de 51.000 ha. Le projet serait ex6cutS par ltadminis-tration de Jatiluhur, organisme semi autonome cre6 par l'Etat en 1970.Des consultants seraient recrutes pour aider A ltexecution du projet. Lecoat de ce dernier atteindrait, selon les estimations, 68 millions de dollars,dont 22 millions correspondraient aux depenses en devises et le solde auxd6penses en monnaie nationale. Les travaux de g6nie civil seuls atteindraient27 millions de dollars. Tous les march6s relatifs aux travaux de g6nie civilet au mat6riel seraient adjug6s apres appel A la concurrence internationale.Les travaux de construction st'tendraient sur six ans.

Le projet aurait pour principal avantage de faire quadrupler laproduction de riz, ce qui permettrait d'accroitre le revenu de quelque36.000 familes agricoles dont la plupart sont de tout petits exploitants;en effet, 30 % cultivent moins de un demi ha, 50 % entre un demi et 2 haet les 20 % restants entre 2 et 5 ha. Quelque 300.000 personnes, ben6fici-aires indirects compris, tireraient profit du projet. La production passerait

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du chiffre actuel de 93.000 tonnes de paddy et 7.000 tonnes de culturesde plein champ ainsi que de legumes a 360.000 tonnes et 34.000 tonnes res-pectivement lorsque le projet aurait atteint son plein rendement. L'econo-mie nette en devises attribuable 'a l augmentation dans le cadre du projet

de la production de riz et des cultures de plein champ se situerait autourde 34 millions de dollars par an. Avec un cours mondial du riz usine cafDjakarta, de 225 dollars la tonne, et un prix au depart de l'exploitationde 180 dollars la tonne pour les engrais, le taux de rentabilit6 economiqueatteindrait environ 42 %. Comme la plupart des exploitations dans la zonedu projet sont petites (moins de 2,5 ha), la plus grande partie des avantagesreviendrait aux petits exploitants dont les revenus actuels sont bienen dessous des revenus moyens en Indon6sie.

Le projet justifie l'octroi par l'IDA dlun credit de 30 millionsde dollars. L'Euprunteur serait la Republique indon6sienne.

31 mai 1974

INDONESIA

APPRAISAL OFJATILUHUR IRRIGATION EXTENSION PROJECT

SUMMARY AND CONCLUSIONS

i. Agriculture, the dominant sector in Indonesia, accounts for overhalf of GNP, two-thirds of employuient and almost all of non-petroleum exports.Although rice represents about one-third the value of agricultural production,Indonesia is not self-sufficient in rice, the staple food. Imports fromabroad have ranged from one half to over one million tons in recent years.The First Five-Year Plan (1969-73) gave priority to increasing rice productionthrough promotion of modern inputs (improved seeds, fertilizers and pesticides)and rehabilitation of irrigation systems. For the Second Five-Year Plan(1974-78), the priority placed on rice production will be maintained, thougha substantial increase in other food crops is also planned.

ii. The Association has made four credits for rehabilitation ofirrigation systems. This report appraises a fifth irrigation projectwhich would take advantage of the existing reservoir and of the main canalfacilities being rehabilitated under the Second Irrigation RehabilitationProject (Rehab II) assisted by IDA Credit 195-IND.

iii. The proposed project would provide flood control, irrigation anddrainage facilities, swamp reclamation, feeder roads and improved agriculturalsupporting services to farmers, for increasing yields and double cropping offood crops, mainly rice, in an area of 51,000 ha. The project would be imple-mented by the Jatiluhur Authority, a semi-autonomous organization establishedby the Government in 1970. Consultants would be engaged to assist in projectimplementation. The estimated cost of the project is US$68 million equivalent,of which US$22 million would be foreign exchange and the remainder localcurrency. Civil works alone would cost about US$27 million equivalent. Allcontracts for civil works and equipment would be awarded after internationalcompetitive bidding. Construction of project works would take six years.

iv. The primary benefit from the project would be a four-fold increasein rice production which would lead to an increased income for some 36,000farm families, most of whom are very small farmers; 30% cultivate less than0.5 ha, 50%, between 0.5 and 2 ha, and the remaining 20%, between 2 and 5 ha.Some 300,000 people, including indirect beneficiaries, would benefit fromthe project. Production would increase from the present 93,000 tons of paddyand 7,000 tons of field crops and vegetables, to about 360,000 tons and 34,000tons respectively at full development. The net foreign exchange saving fromincremental rice and field crop production under the project would be aroundUS$34 million per year. At the projected world market price for milled ricecif Jakarta of $225 per ton and a farmgate price of US$180 per ton for

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fertilizer, the project's economic rate of return would be about 42%. Sincemost of the farms in the project area are small (less than 2.5 ha), most ofthe benefits would accrue to small farmers whose present incomes are wellbelow average Indonesian incomes.

v. The proposed project is suitable for an IDA credit of US$30 millionequivalent. The borrower would be the Republic of Indonesia.

INDONESIA

APPRAISAL OFJATILUHUR IRRIGATION EXTENSION PROJECT

I. INTRODUCTION

1.01 The Government of Indonesia (GOI) has requested an IDA Credit ofUS$30 million to assist in financing the construction of the Jatiluhur Irri-gation Extension Project. This would be the fifth IDA project to promoteirrigated agriculture in Indonesia, the four preceding projects beingrehabilitation of existing irrigation schemes.

1.02 IDA strategy for irrigated agriculture in Indonesia has been toassist in projects which can be quickly implemented and can yield quickresults. The rehabilitation of existing irrigation projects which havedeteriorated over the past 30 years due to lack of maintenance, fits inwell with this strategy. Such projects are mostly located in denselypopulated Java and their improvement benefits mostly small paddy farmers.

1.03 The Second Irrigation Rehabilitation Project (Credit 195-IND)provided for rehabilitation of main canals, including the West Tarum, whichwould be the main canal of this project, and 186,000 ha of irrigated landin the Jatiluhur area. It also provided for a study of the feasibility ofthe Jatiluhur Extension Project. This project extends the Jatiluhur commandarea by taking advantage of existing storage, rehabilitated main canalfacilities and related sunk costs.

1.04 This report is based on the findings of an appraisal mission,comprising Messrs. K. Pranich, H. M. Kim, R. C. Manning, R. R. Morton andS. Okabe, which visited Indonesia in April - May 1973. The report wasprepared by the mission assisted by Mr. R. L. P. Harris. The feasibilitystudy, completed by consultants (a joint venture of Coyne et Bellier andSOGREAH, France) in March 1973, provided the basis for appraisal of theproject.

II. BACKGROUND

General

2.01 Indonesia consists of about 3,000 islands, scattered alon§ theequator for some 5,000 km, with a total area of nearly 2 million km . Thefive largest islands - Kalimantan, Sumatra, Irian Jaya, Sulawesi and Java- comprise about 90%' of the total area. Over 25% of the area, about 60 mil-lion ha, is estimated to be potentially suitable for agricultural development.

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Of this potential, only 16 million ha are presently cultivated, with another24 million ha under forests, leaving about 20 million ha of land availablefor future agricultural development. However, Indonesia has yet to buildup the institutions and the infrastructure required to promote land develop-ment in the outer islands on a major scale. For this reason the island ofJava, where the proposed project would be located, presents an urgent devel-opment problem. Tnough representing only 7% of the land, Java supports about65% of the national population of about 121 million (1972) which is growingat about 2.0% per year. Practically all suitable land on Java is now undercultivation. Typical land holdings are very small, there is no room for areaexpansion and agriculture intensification largely depends on improved watercontrol and distribution.

The Agricultural Sector

2.02 Agriculture accounts for more than half of GNP, about two-thirdsof employment and almost all non-petroleum exports. Rice, the staple food,amounts to about one-third the value of total agricultural production. In theFirst Five-Year Plan (1969-73), the GOI gave priority to increasing riceproduction, which had stagnated for more than a decade. Measures to achievethis included rehabilitation of existing irrigation systems, price supportprograms, and provision of improved seed, fertilizer, pesticides and credit.These Government programs contributed to the increase in rice productionfrom 10.2 million tons of milled rice (16.5 million tons of paddy) in 1968to 12.8 million tons (20.6 million tons of paddy) in 1971. Despite thesegains, Indonesia must still import from one half to one million tons of ricea year. The 1972 drought had a severe impact on rice output, highlightingthe vulnerability of the Indonesian rice economy to weather fluctuations.In light of this, it is unlikely that Indonesia will achieve self-sufficiencyin rice production within this decade.

2.03 Increased rice production will require continued improvement ofexisting irrigation facilities, expansion of irrigated areas, continuedefforts to disseminate high yielding rice varieties, and the promotion ofmodern inputs use by strengthening agricultural extension services. OnJava, the major emphasis must be placed on intensification and increasingyields. These are the objectives of the proposed project.

2.04 Other food crops such as maize, groundnut, soybean, cassava andvegetables have not made significant progress in recent years. The principalfield crops are maize and cassava, occupying about 2.7 and 1.5 million harespectively in 1971. Yields are generally very low as these crops aremainly grown 'under rainfed conditions or on residual moisture after a firstpaddy crop. Traditional agricultural exports such as rubber, tea, pepper,coffee, copra and tobacco represent about half of non-oil export earningswhile lumber has accounted for another 25% in recent years.

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Irrigation Development in Indonesia

2.05 Irrigated rice cultivation is a long practiced and generally wellunderstood technique in Indonesia. Irrigation by canal systems began in themiddle of the 18th century and is best developed in Java, Madura and Bali,w.th additional minor areas in South Sumatra and Sulawesi. At present thereare about 4 million ha under irrigation in Indonesia, accounting for nearly50% of the country's riceland and comprising 1.7 million ha of "technical"irrigation systems, 1.0 million la of "semi-technical" systems and 1.3 millionha of "village" systems. 1/ In Java'. alone, out of 3.4 million ha under rice,about 2.8 million ha have some form of irrigation and these areas accountfor over 90% of the island's rice production. However, as a result of threedecades of neglect in maintaining the systems, about 1.9 million ha in Javarequired rehabilitation by the mid 1960s. In addition, massive deforestationin watershed areas altered the runoff patterns of the streams and therebyincreased the problems of maintenance and operation for downstream systems.

2.06 Rehabilitation of the irrigated systems was given high priorityin the First Five-Year Development Plan, with about 60% of the agriculturaldevelopment budget allocated to irrigation. IDA has provided four creditsto assist in rehabilitating 820,000 ha, mainly in Java, but including some80,000 ha in South Sumatra and Sulawesi (Map IBRD 10524). The First IrrigationRehabilitation Credit (127-IND: US$5 million: September 1968) financedpurchase and operation of equipment for rehabilitation of the Rentang, Cisedaneand Glapan-Sedadi irrigation systems in Java and completion of a new system,Way Seputih, in South Sumatra. The Second Credit (195-IND: USS18.5 million:June 1970) provided assistance for rehabilitation of the Jatiluhur irrigationproject in West Java. The Third Credit (220-IND: US$14.5 million: November1970) helped in the rehabilitation of Ciudjung and Pemali-Comal projects inCentral Java and Sadang project in South Sulawisi. The Fourth Credit (289-IND:US$12.5 million: March 9, 1972) assisted in financing the rehabilitation andimprovement of Pekalan-Sampean irrigation systems in East Java and groundwaterinvestigation in the Upper Solo and Madiun Valleys.

2.07 The First, Third and Fourth Irrigation Rehabilitation projects(Rehab I, III and IV) are administered by Projek Irigasi IDA (PROSIDA), a unitof the Directorate General of Water Resources Development (DGWRD), Ministryof Public Works and Electric Power (MPWEP). A semi-autonomous JatiluhurAuthority (Perum Otorita Jatiluhur) was created in 1970 to administer therehabilitation and development of the Jatiluhur irrigation project (Rehab IT).

1/ "Technical" and "semi-technical" irrigation systems are owned, operatedand maintained by GOI. "Technical" irrigation systems have permanentcontrol structures on all :neadworks and canals. "Semi-technical" systemsdo not have permanent control structures on the canals and water distribu-tion is unreliable. "Village" systems are owned, operated and maintainedsolely by villages. These consist of minor works with temporary or noheadworks, constructed by farmers.

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2.08 Rehabilitation and improvement of the main and secondary canalsand control systems are only the first, though essential, steps towardsintensifying rice production in Java. Except for the Jatiluhur IrrigationProject most of the irrigation systems in Java can irrigate on:Ly 15 to 25%of the project area during the dry season because of the small flows in therivers and the lack of storage reservoirs. There are only a few (mostlysmall) reservoirs in the country, of which Jatiluhur reservoir is by farthe largest. The next logical step is the construction of storage reservoirsin the headreaches of the irrigation systems together with effective irriga-tion and drainage networks at the farm level for the expansion of dry seasoncrops, introduction of new high yielding rice varieties and crop diversification.Accordingly the Association has assisted in financing feasibility studies ofstorage reservoirs in the Pemali-Comal Irrigatio:i Project (Credit 275-IND)and the Cimanuk Project (Credit 289-IND).

The Existing Jatiluhur Project

2.09 The Jatiluhur dam on the Citarum River was completed in 1965.The storage reservoir has an effective capacity of 2,600 Mm3. Waterreleased from the reservoir is distributed to the East and West Tarum maincanals (completed in 1967) by pumping stations at Curug Barrage on theCitarum 10 miles downstream of the dam, and to the North Tarum Canal byan older barrage on the river at Walahar (Map IBRD 10525). There is ahydro-power station at the dam with five generating units, each rated at23.5 MW. Irrigation water is normally released through the turbines,with two discharge valves available for additional or low water levelreleases. The current firm monthly output is 40 M kWh with an averageannual production of 600 M kWh.

2.10 3 The West Tarum main canal, 70 km long with a design capacityof 85 m /sec at its head, is fed by 17 hydraulically driven pumps at Curugand by diversion barrages on the Cibeet, Cikarang and Bekasi rivers3 Thecanal terminates in a tunnel which has a maximum capacity of 10.8 m /sec,discharging into the Ciliwung River. This discharge is utilized by the cityof Jakarta for water supply and flushing of canals. Secondary canals fromthe West Tarum provide irrigation to 18,000 ha north of the main canal,classified as "technical irrigation" (Map IBRD 10525).

III. THE PROJECT AREA

General

3.01 The project area is located in the fertile "Jakarta Plain", oneof the most important rice producing areas of Java. It covers the final51,000 ha under the command of the Jatiluhur reservoir. The area isbounded in the east and the north by the Citarum River, on the west byfish pond ani swamp areas adjacent to the coast and by Jakarta's proposedEastward Extension, and on the south by the existing "technical" irrigationarea and the West Tarum main canal (Map IBRD 10524). The project is in Bekasidistrict (Kabupaten) and extends over nine sub-districts (Kecamatan) with47 villages (Desa).

3.02 The population in the project area is about 300,000. The nationalcapital, Jakarta (population 4.9 million), is located at its western boundary.Three towns with population of more than 20,000 - Cilincing, Bekasi andKarawang - are located at the northwest, southwest and southeast coners,just outside the project area. Several smaller towns are located alongthree spur roads leading into the area from the Trans-Java Highway (MapIBRD 10526). Other than these roads, mobility within the project area isby foot, bicycle or motorcycle along small paths or tracks.

Climate

3.03 The climate is tropical and temperatures vary only a few degreesaroundl the annual average of 26C. Day lengths are almost constant through-out the year. Rainfall is monsoonal with about 80% of the annual precipi-tation of 1,500 - 2,000 mm occurring in the wet season between November andMay. Maximum rainfall generally occurs in January with August being thedriest month (Annex 1). Even in the wet season, rainfall is erratic andsupplementary irrigation would greatly improve crop yields. Irrigation isessential for dry season cropping.

Topography, Soils and Drainage

3.04 The relief of the area varies from gently sloping to flat. Itslopes down from south to north, at about 1:1,000 near the Trans-Java Highwayto less than 1:5,000 near the coast. Nine rivers cut across the project areafrom south to north. The Bekasi, Cikarang, Cibee and Citarum are the majorrivers, with annual peak discharges of over 200 m /sec. Recurrent floodshave raised natural river levees and adjacent land above the surroundingareas; however, in spite of extensive flood embankments these rivers stilloverspill their banks in the wet season. This, together with monsoon rainand poor internal drainage, causes flooding over a minimum of 10,000 ha inthe northern part of the area for periods ranging from a few days to a fewweeks in an average year. Flooding can extend over 30,000 ha in a wet year.These floods cause major damage to crops and create problems for agriculturaldevelopment.

3.05 Soils in the area are of volcanic origin and alluvial, verysuitable for rice growing. They contain a high percentage of clay (50-85%)and are low Ln permeability. They are generally slightly acidic with goodexchangeable potassium content and respond well to nitrogenous and phosphaticfertilizers. Some 4,000 ha of uncultivated swamp land in the project areawould be reclaimed for agriculture. The swamp soils are slightly saline andalkaline; however, once drained, they could be readily developed as goodagricultural land.

3.06 The project area can be divided into four distinct agriculturalzones on the basis of topography, suscBptibility to flooding, naturaldrainage efficiency and dry-season water availability. The main distinction,however, is between the very low-lying land in the northern part of the projectarea and the higher southern area (Annex 2 and Map IBRD 10526).

Farm Size and Land Tenure

3.07 As in most of Java, the farm size in the project area is verysmall. The average farm covers only 1.4 ha of cultivable land; medianfarm sizes are even smaller, ranging between 1.3 ha in the north and 0.8 hain the south. Sample surveys indicate that about half the project area iscultivated by 20% of the farmers on land parcels between 2 ha and 5 ha;43% of the area is cultivated by 50% of the farmers on parcels between 0.5ha and 2 ha; with the remaining 5% of the area being cultivated by 30% ofthe farmers on parcels under 0.5 ha. Based on a sample survey conducted in1971, about 36,000 farm families averaging 6.8 members per family or a totalfarm population of about 245,000, live in the project area.

3.08 There is little fragmentation of land in the area. Only about aquarter of the farmers, farming about 43% of the land, are owner-operators.Another 10% of the farmers are tenants renting their land from the ForestryDepartment or from village administration, and the balance are sharecropperscultivating about half the project area, mainly in the less productive northernpart of the area. The tenure system of owner/sharecropper is usually basedon a 50-50 sharing of the crop with expenses shared on a variable basis betweenthe landowners and the sharecroppers.

Existing Irrigation Facilities

3.09 Within the project area there is no "technical" irrigation. Apre-World War II "semi-technical" irrigation system serves about 12,000 hamostly in the southern part of the project area. The irrigation watergenerally comes from offtakes in the banks of the major rivers. Poorlymaintained distribution canals and outfalls are managed by village cooperatives.Other supplies come from unreliable surplus water from the tail end of secondarycanals in the "technical" irrigation areas to the south, supplied from theWest Tarum main canal.

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Agricultural Production

3.10 Rice, which is the main crop, is grown throughout the projectarea in the wet season and wherever there is sufficient water during thedry season. The overall annual cropping intensity is about 130%, with asmall area (6% of the total) under field crops in the dry season. Theseinclude maize, cassava, legumes and vegetables which are grown on higherground with lighter soil, generally along the river banks, with a combinedproduction of less than 7,000 tons per year. The present annual productionof paddy is about 93,000 tons, cf which 72,000 tons is wet season crop.

3.11 The average paddy yield in the project area is currently 1.6 tonsper ha, with yields ranging from 1.2 tons per ha in the northern area to2.0 tons in the south. The current farming practices, crop intensity andaverage yields are detailed in Annexes 2 and 12.

Transportation

3.12 The national railway and highway, which link the area with Jakartaand other main cities on the northern coast of Java, pass along the southernextremity of the project. Traffic on the highway is heavy. Upgrading andnew links between Jakarta and Bekasi to relieve the current congestion arescheduled for construction in the Second Five Year Plan. Of the three spurroads from the main highway into the project area, only the road to Sukataniis asphalted; the roads to Babelan and Cabangbungin are gravel and dirt roadsin very poor condition, usable only during the dry season.

3.13 Paddy and other produce are moved from the farms to village marketsand rice mills by carry-pole, bicycle and buffalo carts. It is not unusualfor farmers to carry their paddy by carry-pole or bicycle 6-8 km to the market.During the rainy season small boats are also used for transport to villagesclose to rivers. Rice mills are located in villages on the spur roads or onthe main highway. Transportation between mills and consuming centers isgenerally by truck.

IV. THE PROJECT

4.01 The proposed project would provide flood control, irrigation anddrainage facilities, swamp reclamation and improved agricultural supportingservices to farmers in an area of about 51,000 ha under the command of theexisting Jatiluhur dam and West Tarum main canal, to permit increases incropping intensity and yields.

Project Works

4.02 The main components of the pro3act, details of which are givenin Annex 3, are as follows:

(a) Rehabiitation of 115 km of existing flood embank-ments on both banks of the Citarum river;

(b) Major flood diversion channel to evacuate flood watersfrom the Cikarang and Bekasi rivers directly to thesea. The channel would be J6 km long with a normaldischarge capacity of 320 m /sec and a maximumcapacity of about 900 m /sec;

(c) Secondary irrigation canals (about 270 km) anddrains (about 300 km) to serve 51,000 ha;

(d) Tertiary irrigation and drainage networks, with some500 km each of canals and drains, with each tertiaryunit covering an area of 150-200 ha;

(e) Reclamation of about 4,000 ha of uninhabited swampland for agricultural uses;

(f) Construction of road system comprising 170 km of newfeeder roads (Indonesia Class III) to connect farmsin the area with the large marketing centers;

(g) Construction of office buildings, stores, housesfor project management staff and si> ruralagricultural extension centers;

(h) Procurement of vehicles and equipment for constructionsupervision and agricultural extension services;

(i) Engagement of consultants to carry out planning, design,detailed engineering, preparation of contract tenderdocuments and supervision of construction of the projectworks, to train Indonesian counterparts and to providetechnical assistance to the Jatiluhur Authority and PROSIDAin planning, design and implementing the pilot on-farmdevelopment areas;

(j) Engagement of two specialists - one to assist theAuthority and GOI in development of agriculturalextension services and the other to assist the Authorityin implementation of operation and maintenance proceduresdeveloped under Credit 195-IND;

(k) Training in the count:ry and overseas of the Authority'sstaff, agriculturists and agricultural extension officers,and training in the country of "'key farmers";

(1) Upgrading and expans-ton of agricultural extensionservices in the whole Jatiluhur project area (236,000ha); and

(m) Construction of a number of pilot areas with varyinglevels of on-farm development works (land levelling,boundary realignment, water control and farm access)covering a total area of about 1,000 ha in the projectarea and about 4,000 ha in the four irrigation rehabi-litation projects (Rehab. I, II, III and IV) under thepreceding IDA credits; each pilot area would consistof a fully rehabilitatedl tertiary unit of 150-200 ha.

Water Demand, Supply and Quality

4.03 Water Demand. The consumptive water requirements for the proposedcropping patterns were determined using the Modified Blaney-Criddle Formula,which has proved to be close to the actual field requirements in Indonesia.Taking into account effective rainfall, averaging 1,230 xm per year, anestimated overall project efficiency of 55%, and the projected croppingintensity of 195%, the annual diversion requirement from the West 3Tarumcanal would average 15,500 m /ha of cropped land, or about 780 Mm per annum.The projected average annual water demand on the Jatiluhur reservoir for thewhole JatilNhur project area of 236,000 ha is 3,000 Im per annum, rangingfrom 100 Mm in Ngvember and January to about 500 Mm in August (Annex 4). Anadditional 200 Mm per annum is required for supply of water to JakarSa(Appendix A of Annex 4), with a potential additional demand of 200 Mm perannum for the future eastward extension of Jakarva in the next 12-15 years.

4.04 Water Supply. Water for crop production in the project area wouldcome from rainfall and from water distributed from the West Tarum main canal.Water is supplied to the canal from the Jatiluhur reservoir, via the Curugpumping station, and from three diversion structures on the Cibeet, Cikaraegand Bekasi rivers. Regulation of water supply is provided by the 2,600 Mmstorage capacity of she Jatiluhur reservoir. 3The annual flow in the Citarumat Curug is 6,000 Mm on average and 4,500 Mm in a dry year. The averageannual fiows in the three secondary rivers with diversions to the canal total2,000 Mm . Water management studies carried out by the Jatiluhur Authorityand their consultants (joint venture of Coyne et Bellier and SOGREAH, France)indicate that, with the Citarum inflow regulated by the Jatiluhur dam togetherwith the inflow available to the main canal from the three river diversions,there is enough water to meet requirements of irrigation development of thewhole Jatiluhur project area 236,000 ha) as well as to sugply water to Jakartaand its future eastward extension to the extent of 400 Mm per year (para 4.03).The studies also indicate that, with the project, the electric energy producedfrom irrigation water release at the hydro-power plant at the dam would stillbe around 600 M kWh, which is a'out the same as the current production (Annex4). The pondage between Jatiluhur dam and Curug Barrage is large enough toact as a reregulation reservoir to allow the power plant to generate peakpower, if required, without affecting3irrigation operation. If, however,Jakarta would demand more than 400 Mm per year, other sources of supply suchas from Saguling Reservoir upstream of Jatiluhur dam, currently under study

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in connection with the West Java Thermal Power Project (Credit 399-IND) or fromthe nearby Cisedane River, would have to be sought. Annex 4 describes GOI'spclicv (of Yay 17, 1973) for the operation of Jatiluhur reservoir to meetthe various demands - water supply, irrigation and electric power. Assuranceshave been obtained that GOI would consult and agree with the Association onany proposed change to this policy before making the change.

4.05 Water Quality. Tests of water samples from rivers and canalsindicate that the water is excellent for sustained irrigation and no problemsof salinity or of any adverse effects on irrigation are expected.

Engineering Design

4.06 The feasibility study carried out by the consultants under Credit195-IND effectively covers the planning and design of the engineering worksand the agricultural development plan. However, these engineering designsare preliminary and were limited by the scale and accuracy of availabletopographical mapping. For detailed designs, maps to a scale of 1:5,000 with0.5 m contour intervals would be required. Such mapping was completed inMay 1974 with financial assistance from IDA Credit 275-IND. These maps wouldbe used for detailed designs and preparation of tender documents.

Construction Schedule

4.07 The project works would be completed in six years. The proposedconstruction schedule is described in Annex 5 and Chart No. 7910. Providedconsultants (para 5.14) are appointed by July-August 1974 so that they wouldhave about six months to prepare final design and tender documents, constructionwould commence in the 1975 dry season with completion of contract works scheduledfor end 1979. The cadastral mapping of the 4,000 ha of swamp lands would becarried out as soon as each swamp is drained. These reclaimed swamp landswould be used for settlement of farmers by GOI. Assurances have been obtainedthat cadastral maps of each swamp area would be completed six months after theswamp is drained, and that the criteria for selection of farmers to be settledon the reclaimed land and the settlement time schedule would be submitted byGOI for the Association's comments before December 31, 1976.

Cost Estimates

4.08 Total project costs are estimated at US$68 million equivalent(Rp 28,000 million). The foreign exchange component is estimated at US$22million or 32% of total project cost. Estimates are based on acceptablepreliminary design and on unit costs c,f similar recent work and contract bidsin West Java adjusted to end 1973 p levels. Physical contingencies of10% are allowed on all items to cover unforeseen increases in quantities.Expected cost increase due to i:aflatioz for civil and on-farm development works,falling from 18% in the first year to 122. -zn the third year and thereafter,for equipment, falling from 147 in the first year to 7.5% in the third year,

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and for all other items falling from 12% in the first year to 6% in the thirdyear and thereafter, have been included for both local and foreign cost items,in~c.luding physical contingencies.

4.09 A breakdown of project costs is given in Annex 6 and is summarizedbelow:

Local Foreign Total Local Foreign Total/i(Rupiah Million) (US$ Million)

Lanc Acquisition 1,620 - 1,620 3.9 - 3.9

Civil WorksFlood Control 1,130 870 2,000 2.7 2.1 4.8Irrigation & Drainage 4,525 2,735 7,260 10.9 6.6 17.5Reclamation of Swamps 100 70 170 0.2 0.2 0.4Roads 1,025 575 1,600 2.5 1.4 3.9Buildings, Stores,Houses & Rural Agr.Extension Centers 170 - 170 0.4 - 0.4

Sub-Total 6,950 4,250 11,200 16.7 10.3 27.0

Equipment & Vehicles 25 165 190 0.1 0.4 0.5

Consultants' Services 355 825 1,180 0.9 2.0 2.9

Specialists & Training 85 185 270 0.2 0.4 0.6

Pilot On-Farm Development 415 - 415 1.0 - 1.0

Agricultural Extension Serv. 575 - 575 1.4 - 1.4

Operation & Maintenanceduring Construction 340 - 340 0.8 - 0.8

Administration & Overheads 915 - 915 2.2 - 2.2

Physical Contingencies 1,120 540 1,660 2.7 1.3 4.0

Sub-Total Project Cost 12,400 5,965 18,365 29.9 14.4 44.3

Expected Cost Increase due toInflation 6,680 3,155 9,835 16.1 7.6 23.7

Total Project Cost 19,080 9,120 28,200 46.0 22.0 68.0

/1 Discrepancies in currency conversions due to rounding.

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4.10 The implementation of full on-farm development in the extensionproject area is estimated to cost US$6.0 million equivalent. Much of thisgould be in the form of donated land and volunta-y labor from farmers.No provision is made in the capital cost estimate for this cost, but it isincorporated in the economic analysis.

Financing

4.11 The proposed IDA credit of US$30 million would finance the fullforeign exchange costs and about 17% of the estimated local costs of the pro-ject. It would cover 44% of the estimated total project costs. GOI wouldcontribute a total of US$38 million equivalent, through annual budget appropria-tions, to Jatiluhur Authority and to PROSIDA for pilot on-farm developmentworks on the Rehab I, III and IV project areas (para 5.07). Assurances havebeen obtained that GOI would ensure that sufficient funds to cover the budgetedexpenditures estimated quarterly by the Authority would be made availableto the Authority not later than 15 days after the first day of each quarter.

Procurement and Contracts

4.12 Vehicles and equipment for construction supervision and agriculturalextension services, costing about US$400,000 (Annex 7) would be procured afterinternational competitive bidding in accordance with Bank Group Guidelines.A preference limited to 15% of the cif price of imported goods or the actualcustom duty, whichever is lower, would be extended to qualified local manu-facturers in the evaluation of bids. Small off-the-shelf items costing lessthan US$5,000 each, which are not suitable for international tendering, wouldbe purchased through normal Government procurement procedures. Such purchaseswould be limited to a total of US$50,000. There are sufficient suppliers ofsuch goods to ensure adequate competition.

4.13 All civil works except for US$0.4 million worth of office buildings,stores, houses and rural extension centers, would be subject to internationalcompetitive bidding. They would be grouped into about four contracts, eachsufficiently large to attract interest from experienced contractors. A preferencelimited to 7 1/2% would be extended to qualified local contractors in theevaluation of bids. To ensure in advance of bidding that the works would becarried out by capable contractors, all bidders would be pre-qualified. Pre-qualification would take into account the experience and past performance ofeach firm on similar work, its zapabilities with respect to personnel, equip-ment and plant, and its financial position. The value of the contracts wouldrange from US$5 million to US$15 million. There are several local firms whocould compete successfully on these works. Nevertheless, in order to promoteand uplift the capability of the other local firms and that of managers,engir.eers and technicians, foreign consulting and contracting firms invitedto submit proposals or tenders would be encouraged to associate themselveswith Indonesian firms. As the works would recuire many large items ofcon.struction equipment, especially earth moving equipment, provisions would

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be made in the tender documents for the Authority to authorize advances tocontractors up to 20% of the contract value for the purchase of importedconstruction equipment and spare parts. There are no preferential importduties in Indonesia that may affect international contractors or suppliers.

Disbursement

4.14 Disbursements from the proposed credit would be made at the rateof 100% against the cif cost of directly imported vehicles and equipment;at 95% of the ex-factory price of vehicles and equipment manufactured locally;and at 65% of the off-the-shelf price. For consultants' and specialistsservices and overseas training, disbursement would cover the actual foreignexchange costs. Disbursement for civiL works would be at 55% of certifiedmonthly progress payments or expenditures. Disbursement would not be madeagainst the costs of land acquisition, pilot on-farm development works, localcosts of agricultural extension services, operation and maintenance duringconstruction, and administration and overhead costs. The estimated schedulesof expenditures and disbursements of the proposed credit are shown in Annex 8.

Accounts and Audit

4.15 Auditing by an independent external auditor - Drs. SIE & Co.,approved by the Association - started in August 1972. The firm has auditedthe Authority's accounts for the years ending March 31, 1971 and 1972. Workis in progress on the 1972/73 audit. Assurances have been obtained that theAuthority would maintain a separate account for this project, with the 0 & Mallocation (contribution from IPEDA - para 5.18-5.20) and expenditures clearlyidentified as separate items, and that copies of the independent externalaudit of the project accounts would be sent to the Association within fourmonths of the close of each fiscal year.

Environmental Effects

4.16 There is no schistosomiasis in Java. Malaria is almost non-existent, but there are still a few reported cases near Cikarang and Sukataniin the project area and in the hilly areas of Cibarusah and Lemahabang southof the project. The malaria eradication program is being well enforced byGOI. Though DDT will be banned for agricultural use in 1974, its continueduse for public health will be allowed.

4.17 The major health problem in the project area is malnutrition, whichis responsible for high infant mortality and low adult labor productivity.GOI is aware of the problem and has set up pediatric units in most existinghealth centers in the project area. Increased production of rice and fieldcrops from the project would help aileviata malnutrition. By providing waterthrough irrigation canals sprez.ding over the area, the project would alsohave a beneficial effect on public healt:h. Communicable diseases wnich areprevalent in the project area, such as s'icin diseases, diarrhea, cholera andtuberculosis, should decrease with the year-round availability of water. The

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flood control, improved drainage and swamp reclamation aspects of the projectwould also improve environmental and public health conditions in the area.Yertilizers and chemicals are already in use in and around the project area;people are well aware of their toxic hazards and no adverse effects areenvisaged.

V. ORGANIZATION AND MANAGEMENT

Project Management

5.01 The Jatiluhur Authority would be responsible for the constructionand operation of the project. The Authority is a semi-autonomous publicagency established by the Government in 1970 to manage the multipurposedevelopment of the Jatiluhur region and to implement Rehab II. It is governedby the Minister of Economy, Finance and Industry (MEFI) and its operationsare managed by a Board of Directors. The MEFI, in guiding the Authorityand setting its policies for Jatiluhur development is assisted by a MinisterialCouncil comprising the Ministers of Public Works and the Electric Power (MPWEP),Home Affairs, Finance and Agriculture.

5.02 The Authority's Board of Directors consists of a PresidentDirector (Project Manager) and three Department Directors who have separateresponsibilities for Irrigation, Electric Power, and Administration. TheIrrigation Department Director's responsibilities include the Authority'sagricultural support, coordinating and programming activities. An Agri-culture Advisory committee, comprising the Ministry of Agriculture'sDirector of Extension Services, three technical specialists and the headof the Irrigation Department Agriculture Section, counsels the Boardon agricultural matters. Assurances have been obtained that the positionsof President Director and Director of the Authority would at all times befilled by qualified and experienced persons and, before an appointmentis made to any such position, GCI would afford the Association a reasonableopportunity to exchange views with it on the qualifications and experienceof the persons considered for the appointment.

5.03 Experience since 1970 has pointed out a number of desirablechanges in the Authority's organization and operating procedures. TheGovernment is currently considering the reorganization of the Authority.Final details, including the specific duties, responsibilities and authorityof the various officials must still be spelled out, but the outlines areclear and are presented in Chart No. 785%. '7nder the Irrigation DepartmentDirector, who would be assisted by office sz^-2 and project consultants, wouldbe three divisions. The Development and Cons:ruction Division, headed bya Deputy Director, would be responsible for aLL remaining rehabilitation workas well as ndw construction in the entire Jatiluhur project area. TheOperation and Maintenance Division, also headed by a Deputy Director, wouldbe responsible for all 0 & M i: the entire Jatiluhur area, down through the

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tertiary networks. The area would be divided into four Engineering Districts,each headed by a District 0 & M Engineer. These'would cover the WestDistrict (West Tarum System including the extensxon project area) MiddleDistrict (North Tarum System), East District (Eart Tarum and Cipunegara Systems)and the Curug District (Curug Barrage and pumping plants and overall regula-tion and distribution of water supply to the irrigation districts). TheAgriculture Section, which is now a responsibility of the Deputy Directorfor 0 & M, would be upgraded to become Agricultural Development Divisionheaded by a Division Chief. The Authority, through this new Division, wouldassume a larger role than it has at present in planning and assisting in theimplementation of agricultural development in the entire Jatiluhur projectarea.

5.04 An important objective of the reorganization would be to improvethe Authority's cohesiveness, the coordination among the three departments,the budget and finance procedures, and to strengthen its overall administration.The two operating Departments - the Irrigation Department and the ElectricPower Department - are being rtu largely as independent units with littlecoordination between them. Each has its own finance, administration andlogistics section operating independently of the Administration Department,which deals mainly with legal matters, external affairs and public relations.Funds for irrigation development are channeled through the budget of theDirectorate General of Water Resources Development (DGWED) of NPWEP. Fundsfor 0 & M of the electric power plant come from the sale of electricity tothe State Electricity Corporation. Funds to run the Administration Department,mainly for salaries, come from the two operating departments.

5.05 The successful reorganization of the Jatiluhur Authority would beessential to the success of the proposed extension project and continuedprogress under Rehab II. GOI would consider the following points in formulatinga reorganization plan:

(a) Any revenues of the Authority should be collectedby the Administration Department and managedunder the direction of the Board of Directors;

(b) The Administration Department should be strengthened;

(c) The Irrigation Department should be reorganized alongthe lines indicated in para 5.03 above;

(d) A study for improving the Electric Power Departmentshould be carried out; and

(e) The coordination and cooperation among the threedepartments should be improved.

Assurances have been obtained _hat by June 30, 1975 the Jatiluhur Authoritywould be reorganized according to a plan agreed\between O01 and the Associa-tion.

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Implementation of Project Works

5.06 The Authority's Irrigation Department would be responsible forconstruction, oneration and maintenance of project works. It would alsopromote, plan and coordinate agricultural development and supporting activitiesin the whole Jatiluhur project area. Generally GOI, through its agencies,constructs, operates and maintains only primary and secondary irrigationcanals, including headworks and canal structures. All tertiary irrigationcanals and structures have been traditionally constructed by farmers onlands donated by them. There are only few drainage canals in Indonesia, allof which have been built by the Government. Drainage is usually effectedthrough natural drains, streams and rivers. These traditional proceduresfor providing irrigation and drainage have not been entirely satisfactory.Farmers have not been able to construct tertiary canals to appropriatestandards or in a timely manner, and in most places drainage has beeninadequate. In this project, construction of the proposed tertiary irrigationand drainage system by the Government would be an innovation. Assuranceshave been be obtained that GOI, through the Authority, would construct the entiretertiary networks (para 4.02 (d)) and would purchase required land from land-owners.

Pilot On-Farm Development Areas

50C7 Traditionally, farmers in Indonesia have been responsible forcarry7ng out on-farm development works themselves. Experience with the fourIDA financed irrigation rehabilitation projects indicates that on-farm devel-opment has not been adequately done following this procedure. More informationis required concerning the appropriate level of on-farm development, how muchof the work the farmers can do themselves, and how much assistance they wouldneed for more complicated taslz such as boundary realignment, land levellingand construction of water control structures. The project would includepilot schemes designed to evolve a phased approach to further long term improve-ments in water control through on-farm development and to determine the appro-priate degree of farmer participation. To that end, pilot areas would beuLLablished on 5,000 ha: 1,000 ha in the project area and 1,000 ha under_ehab II by the Authority's Irrigation Department; and 3,000 ha in the areas

R Rehab I, III and IV by PROSIDA. Technical assistance in planning, imple-ientir. and studying the results of these areas would be provided by the

project consultants. Results from the pilot area studies would be availableby 1976/77. Assurances have been obtained from GOI that by December 31, 1977,it would complete the pilot area studies and discuss the results with theAssociation, and that the agreed level of on-farm development works would becarried out and completed in the project area within four years after thecompl:tion of project works.

Agricultural Development and Supporting Services

5.CE, The Authority, Ministry of Agriculture, West Java Provincial Govern-mern- and its agricultural agencies down to village level would all participate

'he development of agriculture and provision of agricultural supporting

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services in the whole Jatiluhur project area. The Authority would coordinatethe work of all these agencies. To improve coordination and cooperation,especially with provincial and local government agencies, the Authorityproposes to replace its Agricultural Advisory Committee with an AgriculturalConsultative Committee. 1/ This Committee would be given a larger role toplay in planning, programming and guiding agricultural development in the area.The Committee's first task would be to establish a comprehensive agriculturaldevelopment program for the whole Jatiluhur project area, including the numberof agricultural extension officer3 and subject matter specialists requiredto implement such program. A draft pr)gram prepared by the consultants underCredit 195-IND, which was submitted to the Authority in early 1973, could beused as a basis for the Committee's work. Assurances have been obtained thatGOI would submit a comprehensive agricultural development program for theentire Jatiluhur project area to the Association not later than September 30,1975 for the Association's review and comments, and that the program wouldthereafter be implemented.

5.09 The most important GOI agricultural support programs have beenthe BIMAS credit program for improved seeds, fertilizers and pesticidesand the INMAS agricultural extension program (Annex 2). Because farmers didnot have an assured water supply, during the 1972/73 wet season only 16%and 30% of the whole Jatiluhur project area were under BIMAS and INMASrespectively. After the completion of Rehab II and this project, irrigationwater supply would be assured and farmers would need increasingly more creditand inputs. Assurance have been obtained that GOI would supply adequatecredit and agricultural inputs to farmers in each tertiary unit of the projectarea as soon as irrigation works down to tertiary irrigation canal and drainin that unit are completed.

5.10 Agricultural extension in the whole Jatiluhur project area is stillnot adequate. There are 180 extension officers and workers in the area, orone extension worker for about 1,000 farm families. Extension work is hamperedby lack of funds and transport vehicles, inaccessibility of the area and thelow standard of extension workers. There are three Rural Extension Centersin the area and GOI is setting up three additional Centers. A training pro-gram for key farmers has recently been started at the three existing Centers,in which these farmers receive classroom instruction and practice moderntechniques on demonstration farms. Though this is considered a very goodprogram, only a small number of farmers have been trained so far, due to lackof funds and shortage of instructors and facilities.

5.11 To strengthen extension services in the area, the project wouldfinance construction of six new Rural Extension Centers, equipped withaudio-visual aid equipment and necessary farm machinery such as power tillers,sprayers, paddy threshers, soil testing kits etc. (Annex 7). Both old and

1/ Consisting of the President Director of the Authority, Director ofIrrigation and Chief of the Authority's Agriculture Section, Representa-tive of the Governor and Coordinator of Agricultural Section of the WestJava province, District Officers (Bupati) of the area's five districts(Kabupaten) Director of Extension Services of the Ministry of Agricul-ture and two or three selected agriculture specialists.

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new Centers would be used for conducting refresher courses, seminars andvork shops for extension personnel as well as for training key farmers.7he nur-ber of extension personnel would have to be increased gradually. Byearly 1978, the number of new agriculturists, extension officers and subjectmatter specialists determined in the agricultural development program (para5.08) would be added to the existing extension service in the area. TheproJect includes funds for an internationally recruited agriculture extensionspecialist to assist in improving and implementing extension services fora period of at least three years, (para 5.14), and funds to cover operatingcosts of the agricultural development and extension program in the wholeJatiluhur project area from 1974 through the end of 1979. The project wouldalso provide bicycles, motor cycles and inspection vehicles to improvemobility.

5.12 With assistance from IDA Credit 246-IND, GOI has establisheda modern seed industry which is expected to produce 22,000 tons a year ofcertified high-yielding rice seed. Recently IDA Credit 288-IND has beenextended to rehabilitate, expand and equip agricultural training institutesand to improve the facilities of 14 national agricultural senior secondaryschools. Through these projects, it can be expected that improved seedsand more and better agricultural extension workers would become available toserve not only the Jatiluhur project area but the whole country.

Training

5.13 To help overcome the shortage of trained and experienced irrigationofficers and sub-officers, the project includes funds for training about100 water masters at the Bandung Technical Academy and Surabaya TrainingInstitute and about 25 administrative personnel at the Institute for ManagementResearch and Education and the University of Indonesia in Jakarta. Fundshave also been provided for overseas training and study tours for 15 seniorengineers, and scholarships for sending 15 students to local colleges for3-year formal academic courses in civil, mechanical and electrical engineering.After graduation these students would be obliged to work for the Authorityas provided in GOI regulations (Annex 9). Arrangements would also be madeunder the project for a three month overseas training and observation tourfor 15 agriculturists and agricultural extension officers and workers (Annex 9).

Consulting Services

5.14 Although the Jatiluhur Authority has gained valuable experiencein rehabilitating the existing irrigation systems in the Jatiluhur area,it has had no experience in planning and designing a major irrigation project.It would therefore engage an experienced and qualified consulting firm tocarry out, with the assistance of local firms or staff, the planning, designand construction supervision of the project. The consultants would alsoprovide assistance in planning, designing and implementing the pilot on-farmdevelopment works and preparing a comprehensive program for the introduction

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of such works throughout the whole Jatiluhur project area, and would trainindonesian counterparts. Two individual specialists would also be directlyengaged by the Authority - an 0 & M engineer to assist in establishing anO & M organization and an extension service specialist to help improve andimplement the agricultural extension program. Draft terms of reference ofthe consulting firm and the specialists are presented in Annex 10. About 90man-years of consultants' services and 6 man-years of specialist serviceswould be required at a cost of about US$3 million. Assurances have beenobtained that the two qualified specialists would be engaged by the Authorityunder contracts approved by the Association, each for a period of not lessthan three years. A condition of credit effectiveness would be that consultantsacceptable to the Association had been appointed on terms and conditionssatisfactory to the Association.

Operation and Maintenance

5.15 The Irrigation Department's 0 & M Section presently has responsi-bility for operating and maintaining the irrigation works in the wholeJatiluhur project area. Under the proposed reorganization (para 5.03) ano & M division, with subdivisions to cover four districts each headed bya district 0 & M engineer, would be established (Annex 11). The operationsection would be responsible for water management from the main canal downto the tertiary canal offtakes and for determining and transmitting waterreqrirements throughout the irrigation area to a control center at Curug.The West Tarum sub-division would be responsible for the extension projectarea. The maintenance section would be responsible for the upkeep of theirrigation canals, drainage channels, control structures and embankments.It would have a small plant fleet and be capable of carrying out all but majorrepairs in the area. Major repairs would be carried out by contracts. The0 & M costs of the completed works during the construction period have beenincluded in the project costs. Assurances have been obtained that the Authoritywould properly maintain all project works both during and after the constructionperiod, and that GOI would provide the Authority with adequate and timelyfunds as required for the purpose.

5.16 As has been the traditional practice, the 0 & M of the irrigationand drainage works at farm level would be the responsibility of the farmers.In other areas in Central and West Java, Water IJser Associations have beensuccessfully developed and the Authority and the Provincial Governmentwould be encouraged to initiate such associations within the project area,prior to completion of construction in each teTtiary unit.

5.17 The major investment of over US$2 million to establish the Authority's0 & M division is provided for under Credit 195-IND. An additional US$100,000is provided in the proposed credit for offices, buildings and workshops inthe extension area. The annual cost of 0 & M for the entire Jati1uhur irrigationarea is estimated to be Rp 760 million or Rp 3,200 (IJS$7.7) per ha of irrigatedarea. 0 & M of roads in the project area would be the responsibility of theProvincial Government and is estimated to cost Rp 500 per ha per annnum.

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Assurances have been obtained from GOI that the Provincial Government of WestJava would maintait roads in the project area, including those constructedunder the project in satisfactory condition.

Recovery of Costs

5.18 Taxes. Although a legal basis exists for levying water charges,farmers in Indonesia at present pay only i land tax (IPEDA) collected by thevillage heads and turned over to the local and provincial administration formanagement of public services. Government has recently tied the disbursementof INPRES, a local infrastructure development program financed by the centralgovernment, to IPEDA collection performance. Under this incentive program,additional disbursements for local development are made when the IPEDA collec-tion exceeds a mutually agreed target. As a result, there were marked improve-ments in the collection of IPEDA in the last two years and this trend isexpected to continue. In addition to IPEDA, farmers pay village taxes andother contributions for road maintenance, school, public building and mosqueconstruction. In the project area these taxes generally amount to about thesame as IPEDA (see Annex 14).

5.19 Since June 1972, a GOI interministerial committee has been studyingmethods of collecting a portion of the increase in farm income from irrigationdevelopment to cover 0 & M costs and a portion of the investment costs. Thecommittee's preliminary recommendaticn is that irrigation charges should becollected by means of increases in IPEDA and that IPEDA should be assessedat 5% of net value of production (NVP) of the land. This method of collectingirrigation charges is the most appropriate and practicable in the Indonesiancontext. Currently, the average annual IPEDA in the project area is aboutRp 2,000 per ha. However, under the 5% of NVP concept, this figure is likelyto go up to about Rp 4,000 per ha by 1985, even without the project. Withthe project it is estimated that, by land reclassification, the averageIPEDA in the project area would rise to about Rp 15,000 per ha. The average

M costs under the "with" project conditions are estimated to be aboute,p 3,200 per ha.

5.20 Project Revenues - After completion of the project, the increasesin IPEDA would lead to a net annual contribution of about Rp 400 million tothe project revenues. In addition the Authority would earn about Rp 80 mil-lion from the sale of water to the special District of Jakarta, of which aboutRp 30 million would be credited to the project. Rental of the 4,000 ha ofproject land reclaimed from swamps would provide another Rp 42 million inrevenue. At an annual discount rate of 10%, the present worth of the projectrevenues would amount to about Rp 2,200 million. The present worth of theproject cost at the same interest rate is about Rp 13,000 million, indicatinga cost recovery ratio of about 17%. On the other hand, if interest rate is notconsidered, the project costs would be fully recovered within 40 years. Inview of the small farm sizes and relatively low income even at full development,this is considered to be reasonable. Assurances have been obtained from GOIthat (i) as each tertiary network under the project is completed, it would

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collect IPEDA from land owners at such level required to recover full 0 & Mcosts of the project and a reasonable portion of the capital costs of theproject, and (ii) it would submit to the Association not less than once everytwo years a report on the sample surveys and methodology used in determiningNVP of the project lands, which would be the basis for the IPEDA rates.

VI. PRODUCTION, MARKET PROSPECTS, PRICES AND FAPM INCOME

Production

6.01 Rice would continue to be the dominant crop after completion ofthe project. Other crops to be grown in the area, which together wouldaccount for less than 10% of the cropped land, include maize, soybeans,groundnuts and vegetables.

6.02 The command area would increase from 47,000 ha at present to51,000 ha, with the reclamation of some 4,000 ha of swamp lands. Followingcompletion of the project works, land in the project area would receive anassured water supply for two crops per year as well as protection fromfloods and an effective drainage system. With completion of the on-farmworks, farmers would also enjoy a greater degree of water control at thefarm level, although even then some irrigation would still follow thefield-to-field practice. The cropped area is expected to increase fromaround 61,000 ha per year at present to 99,000 ha at full development,which would represent an increase in the cropping intensity from about130% to about 195%. Important improvements in cultivation practice in theproject area would include a substantial increase in the area planted tohigh yielding rice varieties, an increase in the use of fertilizers,pesticides and other inputs, and the replacement of manual labor, where itis still used for plowing, by buffaloes. The change from manual laborto buffalo power to reduce the time required for plowing would be necessaryto achieve the proposed higher cropping intensity. The strengthening ofextension services provided under the project would help to realize theseimprovements.

6.03 Projected yields differ between the northern and southern partsof the project area because of differences in topographic and soil fertil-ity conditions. It is further assumed that land tenure arrangements wouldaffect expected yields. About half the project lands are cultivated bylandowners (43%) and tenants (7%), and the other half, mainly in the lessproductive northern part of the area, by sharecroppers (para 3.08). Becausesharecroppers have less incentive to modernize cultural practices, theiraverage yields at full project development are projected to be somewhatlower than those on landowner fields. Furthermore, to reflect theuncertainty in predicting the rate at which sharecroppers would participatein the project (para 6.09), full development yields on sharecropper fieldsare assumed to be realized nine years after the introduction of irrigation,

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,-ereas those onr landowner fields are assumed after four years. At fullcevelcoment, average paddy yields would thus vary between 3.5 and 4.6 ton/ha_epending upon location and land tenure situation. The average yield forthe entire area would be about .0 ton/ha. Total paddy production would beover 360,000 tons at full develcpment, compared with 93,000 tons presentlyand an estimated 110,000 tons in future without the project. Field cropproduction would also increase from about 7,000 tons presently to 35,000 tonsat fu'Ll development. Details about present and future yields and productionof the project area are given 'n Annex 12.

Market Prospects

6.04 With rising incomes and standards of living, per capita consump-tion of rice in Indonesia is projected to increase from around 110 kg peryear presently to 120 kg in the mid-1980s. Assuming a population growth rate of2.4%' per year, and making a 10% allowance for seeds and waste, total demandfor rice in 1985 would be about 22 million tons per year. To meet thisdemand internally, domestic production would have to increase by about 3.8%per year. Until improved rainfed rice production technologies are developed,much of this increase will have to come through higher yields on existingirrigated areas and new systems such as this project. Because mostirrigation projects require a long development period to attain high yieldlevels, there is doubt whether production can close the import gap over thenext 10-15 years. Thus the 230,000 tons of rice to be produced in the projectarea at full development should find a ready market in Indonesia. Thequantities of all other crops to be produced in the area would be very smallrelative to demand, and there should be no difficulties in marketing them inneighboring Jakarta or other nearby towns.

6.05 Rice mills and hullers in Indonesia usually have some storagecapacity and almost all have sun-drying floors. With 16 large mills andover 240 hullers in and around the project area, many of which have beenstablished only in recent years stimulated by the increase in rice pro-duction, the project area presently has substantial excess milling capacity(Annex 13). Nearly all large mills also have mechanical dryers acquiredin recent years. Most mills are privately owned and can readily obtainfunds to expand their capacity. It is therefore reasonable to expect thatthe private sector would expand the milling and drying facilities in thearea as production increases.

Prices

6.06 The estimated future farm-gate price for paddy was derived fromthe Bank's forecast for the world market price of milled rice in 1985 interms of 1974 constant prices. In converting to a farm-gate equivalent price,it has been assumed that about 10% of rice production from the project wouldbe milled into high grade (5% broken), 60% into medium grade (20% broken)

30% into lower grade (42% broken), so that the equivalent average world-arket price would be $225 per ton of milled rice cif Jakarta. After making

allowance for transport and handling charges, the equivalent farm-gate priceof paddy would be about Rp 66 per kg. A somewhat lower price (Rp 55 per kg)

- 23 -

was used in the farm budget analysis to reflect marketing imperfections underwhich farmers are often forced to sell their produce at low prices at or evenbefore harvest time in order to pay back 'heir loans (Annex 14).

Farm Income

6.07 Farming in the project area is presently subsistence in nature,with rice being grown primarily for family consumption. Family cash incomeis derived from the sale of surplus rice and, in small part, other crops suchas vegetables and maize, as well as some earnings from fishing, tradingand other off-farm employment. Separate farm models have been prepared forthe northern and southern parts of the project area. In the northern part,where uncontrolled irrigation and rainfed paddy predominate, the averagefarm size is 1.9 ha. In the southern area, which has a rudimentary "semi-technical" irrigation system, the average farm size is 1.1 ha. Yields,cropping intensity and farm income are generally higher in the southern areathan in the northern area. Sharecropping is common in the northern area.Under the traditional sharecropping arrangement, the landowner pays for theseed, transplanting costs and half the cash inputs, taxes and harvestingcosts. In return he receives half the gross value of production.

6.08 Crops other than rice are of minor importance in the area andtherefore only rice production has been considered in the farm budgetanalysis. The estimated present income and that projected at full develop-ment for seven different farm models, including the estimated income fromoff-farm employment, are presented in detail in Annex 14 and summarizedbelow:

Farm Farm IncomeArea Size Farm System Present Future

(ha) (Rp '000)

South 0.5 Owner Farming 94 224

South 1.0 Owner Farming 147 403Sharecropping 76 188

North 1.0 Owner Farming 79 315Sharecropping 46 150

North 2.5 Owner Farming 161 680Sharecropping 79 310

6.09 Compared with farm incomes under present conditions of betweenRp 46,000 and Rp 161,000 (US$110 to 390), net farm incomes at full develop-ment, after deducting taxes and operation and maintenance costs would bebetween Rp 150,000 and Rp 680,000 (US$360 to 1,640). These income levelsmay be slightly understated since they exclude the value of crops other thanrice. Nevertheless, they point out several important factors. First, with

- 24 -

:xerage fanily s..ze of 6.8 persons in the project area, average per capitatcone for eve-i the best-off families is presently much below the nationalaverage of about US$85 (1973). Secondly, because of typically very smallland holdings (para 3.07), even with the project at full development percapita income levels would still be low compared to the national average,which would be about US$180 in 1988 (at constant 1973 prices) at 4% annualgrowth rate. Only owner-farmers with 2.5 ha farms in the northern part ofthe project area, who represent a small minority of project beneficiarieswould be above th>e average. Thirdly, the income disparity between sharecroppersan, owner-farmers wouid increase with the project as compared with the presentsltuation. Fourthly, the projected incremental incomes of both small farmowners and sharecroppers would still be small in absolute terms, and additionalincentives, beyond the provision of irrigation, drainage, and access to inputsmight be required to ensure their full participation in the project. There-fore, assurances have been obtained that GOI would carry out a detailedsurvey and evaluation of the small farmers', sharecroppers' and landlords'"present" and "with the project" production and financial situation anddiscuss its findings with the Association.

VII. BENEFITS AND JUSTIFICATION

7.01 Upon completion, the project would provide perennial irrigationto some 51,000 ha, including 4,000 ha of reclaimed swamp lands, which presentlyare dependent upon rainfall and small, poorly constructed run-of-the riverdiversion schemes. Project benefits would accrue largely from the improvedirrigation system along with flood protection works and an expanded drainagesystem. Rice would continue to be the main produce of the area although anumber of other crops would account for about 10% of the cropped land. Atfull agricultural development, which is expected in 1988 or about nine yearsafter construction of the project works has been completed, paddy production_rom the area is expected to have increased from 93,000 tons per year atpresent to 363,000 tons. The incremental net value of production at fulldevelopment would be Rp 14,400 million. Since Indonesia is presently importingup to one million tons of rice per year, and imports are likely to continueinto the 1980s, incremental rice production from the project would representa gross foreign exchange saving of some US$37 million annually. Afterdeducting the cost of imported fertilizers and chemicals attributable to theproject, the net foreign exchange saving from rice production with the projectwould be around US$33 million per year. in addition, incremental field cropprodtvtion would save about US$1 million of foreign exchange annually at fulldeve_opment. Assurances have been obtained that GOI would maintain an adequateprogram for monitoring the economic benefits of the project and determiningthe effectiveness of the credit, agricultural inputs and extension services>.cv: ced.

- 25 -

7.02 With about 36,000 families in the project area presently engagedin agriculture, the available farm labor supply is estimated to be about22 million man-days per year. Based on recent trends, the labor supplyin the area is expected to grow to 29 million man-days by the time of fullproject development (Annex 15). Under present cropping conditions, only 13million man-days are needed for farm work, including cultivation of fieldcrops. Even after the projected improvements in farm practice under "withoutproject" conditions, there would be need for only slightly over 13 millionman-days. The severity of underemployment in the area is accentuated bythe seasonal nature of the existing farm labor requirement - at present thedemand for farm labor during the dry season is only a small fraction ofthe requirement for the main wet season paddy crop. At full developmentthere would be a doubling of employment opportunities to 25 million man-days, spread more evenly throughout the year. Although the project wouldnot fully utilize the labor force projected to be in the area at full development,it would provide an additional source of income to a large number of otherwiseunemployed small farmers and sharecroppers, and would tend to discourageemigration to the already crowded urban areas, particularly neighboringJakarta. In view of the labor situation, unskilled labor was evaluated at ashadow wage rate which varies seasonally and is equal to its opportunitycost in the economic analysis (para 7.03). This is equivalent to pricingall incremental labor due to the project at Rp 70 per man-day or 58% of themarket wage rate of Rp 120 per man-day (Annex 15).

7.03 The economic rate of return on the project is estimated to beabout 42% (Annex 16) based on the following assumptions: (a) a 30-yearevaluation period and residual value of civil works equal to 33% of originalcost after 30 years; (b) a 6-year construction schedule; tc) 4-years afterconstruction to complete on-farm development works (Year 10); (d) full benefitsconcurrently with completion of on-farm development works on owners' fields(Year 10) and five years later on sharecroppers' fields (Year 15); (e) 1985projected world market prices (at 1974 constant prices) for rice (US$225 perton) and fertilizer (urea and TSP - US$150 per ton) cif Jakarta; and (f)pricing of farm labor at its opportunity cost and construction labor at themarket wage rate. Other important benefits, such as increased employmentopportunities in trade and industry based on the increased production andincomes in the project area, and the secondary benefits of facilities suchas roads created under the project have not been accounted for in the economicanalysis.

7.04 The economic rate of return is not very sensitive to any of theimportant assumptions made in formulating and evaluating the project. Therate of return amounts to 41% if a full employment market wage rate of Rp 120per man-day is used for all farm labor. If present worldwide fertilizershortages persist and fertilizer use is reduced by 25% over the life of theproject, leading to a 25% reduction in projected future yields with the project,the rate of return would be about 28%. To test the project's sensitivityto the rate at which on-farm development works would be carried out, it wasassumed that, instead of the expected four years, the period required to

- 26 -

complete these works would be 9 years, 14 years, and finally that no on-farmworks would be constructed. The corresponding rates of return were 37%, 34%and 31%, showing that although the project would have a higher return withthese works, it would be viable even without them. The rate of return isnot sensitive to the ability and incentives of sharecroppers to make full useof the potentials provided by the project. It has already been assumed inthe basic analysis that rice yields on sharecroppers' fields would be lowerthan those on owners' fields, and that ten years instead of five would berequired after the introduction of irrigation for them to obtain these yields.If the overall cropping intensity is reduced from 195% to 175% and most ofthis reduction takes place on sharecroppers' fields, the economic rate ofreturn would still be 37%. Finally, sensitivity to variation in constructionperiod and costs was tested. If the construction period is extended by twoyears and costs are increased by 25%, the rate of return would be 27%.

7.05 The project would have a favorable impact on income distribution.Slightly more than half the incremental income generated by the project atfull development would accrue to small farmers (0.5-2.5 ha) who own theirown land and tenants who rent lands from the Forestry Department and villageadministration. Their average income is now about half the national average,and at full project development it would still be less than the projectednational average. About a quarter of the incremental income would go to verypoor sharecroppers whose average incomes would increase from about one-fourththe national average presently to about one-third the projected nationalaverage at full project development. The remaining quarter would representthe net earnings of landlords who do not farm, but provide part of the cashinputs and receive payment from the sharecroppers.

VIII. AGREEMENTS REACHED AND RECOMMENDATIONS

8.01 Agreements have been reached with GOI on the following principalpoints:

(a) not later than June 30, 1975, the Jatiluhur Authoritywould be reorganized according to a plan agreed betweenGOI and the Association (para 5.05);

(b) the Jatiluhur Authority would construct tertiary irrigationand drainage networks in the project area and would purchaselands required for such purpose from landowners (para 5.06);

(c) (i) not later than December 31, 1977, GOI would completethe studies of pilot on-farm development areas,discuss the results and determine, after consultationwith the Association, the level of on-farm developmentworks and degree of farmer participation to be adopted(para 5.07); and

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(ii) the agreed level of on-farm development works in theproject area would be carried out and completed withinfour years after completioni of project works (para 5.07);

(d) GOI would submit to the Association by September 30, 1975,a comprehensive agricultural development program for theentire Jatiluhur project area, including the number ofagricultural extension officers and subject matterspecialists required to implement such program, to theAssociation not later than September 30, 1975 for theAssociation's review and comments, and the agreed programwould thereafter be implemented in the entire Jatiluhurproject area (para 5.08);

(e) GOI would employ two internationally recruited specialists- an O&M engineer and an agricultural extension serviceexpert - under contracts individually approved by theAssociation, each for a period of at least three years(para 5.14); and

(f) (i) as each tertiary network under the project iscompleted, GOI would collect IPEDA from land ownersat such level required to recover full O&M costsof the project and a reasonable portion of theproject capital costs (para 5.20);

(ii) GOI would submit to the Association not less thanonce every two years a report on the sample surveysand methodology used in determining net value ofproduction of the project lands, which would be usedas a basis for the IPEDA rates (para 5.20).

8.02 A condition of credit effectiveness would be that consultantsacceptable to the Association had been appointed on terms and conditionssatisfactory to the Association (para 5.14).

8.03 With the above assurances obtained from GOI, the proposed projectis suitable for an IDA credit of US$30 million under the usual IDA terms.The borrower would be the Republic of Indonesia.

INDONESIA

JATILUTEIR IRRIGATION EXTENSION PROJECT

Summary of Climatic Data

(Jakarta Observatory - Average values for the period 1865-1969)

Dry Season W4et SeasonClimatic Factors

Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Ma

Solar radiation at ground level(cal./cm 2 /day) 368 396 4 35 46o 431 405 378 368 390 408 W40 382

Maximum temperature (aC) 30.8 30.9 31.2 34.4 32.7 30.8 30.3 29.0 28.4 30.2 30.7 31.2

Mean temperat=a (00) 26.5 26.3 26.3 26.7 26.6 26.6 26.2 25.8 25.9 26.3 26.7 26.9

Minirnum temperature (C0) 23.6 23.1 23.1 23.2 24.2 23.3 23.3 23.6 23.6 23.6 23.8 24.0

Relative humidity (%) 82 80 77 76 78 81 84 86 86 85 84 83

Prevailing wind direction NE NE NE N N N W W NW W NE NE

IWind velocity (m/sec) 1 1.1 1.2 1.2 1.1 1 1 1 1 1 1 1

Evaporation (mn/day) 1.9 2.2 2.6 2.8 2.5 2.1 1.9 1.6 1.6 1.7 1.6 1.8

_~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1

IF >

¢.j 1

INDONESIA

JATfl LUHUR IRRIUTION EXTENSION PROJECT

Summary of Climatic Data

Long-Term Average of Rainfall at Fbur Stations

Near the Project Area

Dry Season Wet SeasonStations Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Y

(1) 97 61 52 78 91 155 196 334 241 201 147 113 1760Jakarta

(2) 7.2 6.1 4.5 5.5 7.8 12.3 14.1 18.9 17.4 15.6 11.3 9.2 -

(1) 86 72 56 90 121 185 188 346 213 218 162 140 1877Bekasi

(2) 5.1 4.0 3.1 3.8 6.6 10.3 9.6 13.6 11.2 11.2 8.9 6.9 -

(1) 72 56 37 45 106 191 189 303 234 207 159 118 1717Karawang

(2) 3.5 2.2 2.9 6.2 10.2 10.3 14.2 11.3 11.3 8.8 6.2 4.9 -

(1) 75 57 36 38 70 138 156 329 216 154 110 93 1472Rengas dengklok

(2) 5.1 3.3 2.2 3.1 4.2 7.8 9.1 14.0 11.2 9.7 7.1 6.6 -

(1) Mean monthily rainfall (mm)

(2) Mean nuwatior of rainy days

ANNEX 2Page 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Agriculture

General

1. The project area is located in the Jakarta plain. It is fairlyflat, sloping down from south to north, at 1:1,000 in the southern part andat less than 1:5,000 near the coast in the northern part. The flat northernpart, less than 2 m elevation above MSL, is subject to frequent and occasion-ally prolonged flooding, generally during January and February, while thesteeper southern part is subject to infrequent flooding of short duration.The project area can be divided into four distinct agricultural zones on thebasis of topography, frequency and duration of flooding, natural drainageefficiency and dry season water availability (Table 1 and Map IBRD 10526).The main distinction, however, is between the very low-lying land in thenorthern part of the project area and the higher southern part.

2. Indonesia is in an equatorial region and trhere are only slightdifferences in day length and temperature throughout the year. The dailyaverage temperature is between 250 and 27° C. The climate is tropicalwith a wet season from November to May and a relatively dry season fromJune to October. In Bekasi, just south of the project area, the averageannual rainfall is about 1,88C mnu, of which 1,450 mm or about 80% occursduring the wet season. However, even in the wet season, rainfall distribu-tion is not uniform and agricultural production would benefit greatly froman assured water supply. Rice is the main crop and is grown over theentire project area. The northern part has one low yield rice crop a yearin the wet season (average 1.2 ton/ha of paddy). In the southern part, wheresome irrigation water from semi-technical irrigation works is available butunreliable, two rice crops are grown, with higher yields (2.2 ton/ha oL paddyper crop). Other major field crops, commonly called "palawidja", are maize,soybeans, groundnuts, cassava and vegetables, which are grown in the dryseason on areas with residual soil moisture or with some additional watersupply. Yields are also generally very low (Annex 12). Overall croppingintensity of the project area presently averages about 130%, of wnich 6%palawidja.

Present Rice Cultivation

3. Local rice varieties are generally of the indica type. Some ofthe local varieties belong to the "bulu" group, an awned rice that isintermediate in its characteristics between indica and japonica. The localunimproved varieties commonly grown are medium grain, medium to long seasontypes that mature in about 130 to 160 days after seedling emergence. Longmaturing (150 to 160 days) varieties account for about 60% of the rice grown

ANNEX 2Page 2

in the project area. Some local improved varieties are also grown in theproject area. They include "Synthiag' and "Dara", medium season varietiesthat mature in 140 to 150 days and "Bengawan", a long season type maturingin 160 days.

4. Improved, high-yielding varieties (HYV) have been developed since1968. PB-5 is the same as IRRI 5-47-2, a cross between "Peta", an Indonesianindica variety, and "Tangkai Rotan", a Malaysian indica variety. PB-8(or IRRI 8-288-3) is a cross between "Peta" anl "Taichung Native 1", a Taiwanindica variety. The breeding of these new var:.eties was carried out at IRRI.The Indonesian identification "PB" stands for "Peta Baru" or "new Peta".Yields of these varieties can range from 5 to 8 tons/ha paddy ("gabah").Despite these high yields, however, these varieties were not widely acceptedbecause of poor taste, difficulty in harvesting in the traditional Javanesemanner (para 17), and higher sensitivity to water control with less tolerancefor deep water than traditional varieties. More recently, C4-63 has beenintroduced from the Philippines, and Pelita I and II from the CentralResearch Institute for Agriculture at Bogor to overcome these problems. Allthese HYVs are short maturing (about 130-140 days) with high lodgingresistance, weak sensitivity to photo-periodism, and high response tonitrogenous fertilizer application. However, they produce easy-shattering,chalky grains and are susceptible to bacterial leaf blight.

Cropping Seasons

5. Java has distinct wet and dry seasons, although the dry seasonsare not as pronounced as in many monsoonal regions. Differences in rainfallare sufficiently distinct, however, to cause recognition of wet season cropsand dry season crops. The wet season crop is normally begun in seed bedsin late November through December with transplanting to the paddies inDecember and January and harvesting beginning in mid-April and continuingthrough mid-June. There is obviously much variation from this pattern,for in nearly any month of the year rice may be observed in every growth stagefrom seedling through maturity and harvest.

6. Monthly production records expressed as percentages of totalharvest for West Java are given below. They indicate the harvest months to befrom mid April to mid June, representing the wet season crop, and mid Septemberto mid November for the dry season crop, with May and October being peakinotichs for each season. The wet season crop accounts for the largestpcortion of the gross production.

ANNEX 2Page 3

Month Percent of Harvest

January 0February 0.5March 4.0April 24.0May 40.0June 12.0July 1.0August 1.0September 4.0October 9.0November 4.0December 0.5

Total 100.0

Cultural Practices

7. Seedbed (Nursery) Preparation. For the main wet season crop,nursery preparation starts in late November/early December in the southernpart of the project area and in late January/early February in the northernpart. Seedling nurseries are 1/20 to 1/15 of the size of field to beplanted. They are thoroughly hoed and carefully leveled to assure a good,uniform, fine mud seedbed. Seeds are usually pre-soaked for one to twodays to germinate and then broadcast uniformly in the nursery on the wetsoil surface. The recommended seeding rate for HYVs is 25 kg/ha. Localvarieties are seeded at a rate of about 40 kg/ha because of poorer qualityseed with lower expected germination and also because the farmers transplantmore densely and therefore require more seedlings. After about a week thenursery is flooded.

8. Land Preparation. While the seedlings are developing in thenursery, farmers prepare land for transplanting. More than 80% of the paddyfields are plowed with animal power, mainly buffaloes. Straw and weedsfrom the previous crop are cleared by hand before plowing. The waste isusually buried, but sometimes burned. Tillage with a primitive woodenplow is followed by harrowing once or twice and leveling before transplanting.The land is generally prepared after rainfall or first irrigation.

9. Transplanting. Transplanting is about 3-4 weeks after seeding forIYVs and 5-6 weeks for local varieties, though unreliable water supplyoften delays transplanting, resulting in lower yields. In particular, inthe northern area where frequent flooding occurs during or after transplanting,it is common for farmers to have to re-transplant in late February andoften re-transplant again later. Row transplanting is only practiced onabout 10% of the area.

10. Fertilization. Fertilizers are applied in the nursery beforeseeding, and in the field immediately after land prepration and again 2after first weeding. Recommended application rate is 10 grams of urea per m

ANNEX 2Page 4

of seedbed and 200 kg of urea and 45 kg of TSP per ha in the field.Experimental trials with potash fertilization of rice in Java have shownlittle, if any, yield increase. Hence, potash fertilizers are not recom-mended. Application has been only 10 to 40% of the recommencded dose,and farmers have been reluctant to use more inputs because of the scarcityof low interest credit and the danger of drought. Recently the use offertilizers has been increasin,; in the project area under two government-sponsored agricultural credit programs - BIMAS and INMAS (para 22).

11. Weeding. Weed growth depends on the thoroughness of land prepara-tion and the effectiveness of water management. The first weeding isusually done two to four weeks after transplanting and the second weedingfour to eight weeks later. Weeds are usually removed by hand by women inthe standing water. Where rice is planted in rows, small home-made, hand-pushed rotary weeders are sometimes used. Herbicides are not presentlyused by Ineonesian rice farmers.

12. Pests and Disease Control. At present, pests are more of a threatto the rice crop than disease. In 1971, between 15 and 30% of the crop inthe project area was damaged by insects. The most serious insect is therice stem borer, though the rice gall midge, army worms and rice bugs arealso problems. Control is attempted by spraying with solutions of diazinon(2 cc of diazinon concentrate in one liter of water) on the seedlings and twoweeks after transplanting, usually by means of knapsack hand sprayer.Grasshopers are also controlled with this chemical.

13. Rats are a very serious pest, causing losses amounting up to 10%to 15% of total yields, and damaging dikes. Where control is attempted,Warfarin, zinc phosphide, and endrin baits are used. Birds are frightenedaway from maturing rice by means of various devices that flutter in thewind or are moved by pulling on a string.

14. Brown spot (Helminthosporium spp) is the most common disease. AsHYVs develop in the area with high dosage application of nitrogenousfertilizers, other diseases such as rice blast and bacterial leaf blightare becoming more common. Chemicals to protect rice plants from pests anddiseases are supplied under the BIMAS and INMAS programs (para 22), butare not so widely used as fertilizers. They are often ineffective becauseof limited dosage used by farmers and improper timing of spraying.

15. Water Management. Under ideal conditions with a properly designedand functioning irrigation system, enough water is applied to the paddy tos.t"rate the soil before plowing, hoeing and leveling. This makes plowingeasier and also results in a well-puddled soil, a condition favoring theretention of water. After the paddy is cultivated the level of water isbroughr to a depth of about 5 cm prior to transplanting. When the trans-planted rice has re-established a root system and active growth, up to 10 to14l days, the water depth is increased to 10-15 cm. When drainage is possible,water is drained from thie paddy before the first weeding, or two to fourwqeeks after transplanting. After the weeding, the rice paddy is refloodedto a depth of 10 to 15 cm. SimiLarly, if drainage is possible, the field

ANNEX 2Page 5

is drained for the second weeding and reflooded two or three days afterweeding is finished. A full flood is then maintained until about two weeksbefore harvesting.

16. In the project area, existing "semi-technical" irrigation facilitiesare generally very poor; water is mainly derived from rainfall or in a fewareas from old dilapidated distribution systems. It is practicallyimpossible for the farmers to control irrigation, there is no drainage controlat all, and the available water flows freely from one field to the next.During the growing season there is no voluntary field drying for fertilizertop-dressing or weeding because the inability to reflood the field will endangerthe growing crop. Some farmers do not drain their rice fields even forharvesting because they wish to conserve water for the dry season crop.

17. Harvesting. Harvesting is traditionally done with a special cut-ting knife, called "ani-ani", which enables the harvester to cut the paniclesore-by-one. The rice crop is harvested as stalk paddy, almost entirely bywomen and children. The sickle is just being introduced following the spreadof HYVs, but its use is still negligible. Some rice, particularly theeasy-shattering PB varieties, is threshed in the field, but most is doneat home.

18. The stalk paddy is cut about 25 to 30 cm long and tied into hand-sized bundles. These are carried from the field by women, in cloth slingsover their backs, or by men using shoulder sticks. Sometimes, a triangularwooden rack is placed at each end of the shoulder stick on which the bundlesare stacked. Transportation along roads is commonly by bicycle and high-wheeled carts pulled by water buffalo or bullocks. Generally, this mode oftransportation is used only by buyers for transport of rice between villages,markets, and mills.

19. Rice consumed at home is threshed on a dirt, brick, concrete, orwood floor, by beating the stalk paddy with a stick. Coarse straw ispicked out manually and the chaff separated by winnowing. The paddy "gabah"is spread out to dry on bamboo woven mats or on floors. This rice isoccasionally stirred with a rake or with the feet. After drying, hullingis done in small, daily quantities, by placing the "gabah" in a hollowed-out log "lumpang" and pounding it with a heavy stick "alu".

20. The loosened hulls are separated from the grain by winnowingseveral times. The grain is then put into the "lumpang" and pounded with the "alu"until the bran is removed, followed again by winnowing. The bran is savedfor feeding livestock and poultry, the hulls are discarded or sometimesburned as fuel, and the straw is either used for livestock bedding, makingpaper, baskets, etc., or left on the field.

?1. Most of the rice in the home is stored as dry stalk paddy but someis stored as rough rice in bags or bamboo containers. Rice sold may bedelivered as stalk paddy or paddy "gabah" and is usually hulled and milledmechanically at village hullers or larger mills in the towns. Milling

ANNEX 2Page 6

capacity is considerably in excess of present production, although many millsare old and inefficient.

Credit

22. Under the BIMAS program, credit is provided in kind for a recom-mended package of inputs (fertilizers, insecticides, spraying equipmentand seeds) and a small subsistence allowance, amounting from Rp 10,000 per hafor local variety paddy to maximum total value of Rp 14,000 per ha forHYV. BIMAS also provides intensified extension services. Funds are pro-vided through the People's Bank of Indonesia (Bank Rakjat Indonesiaor BRI). The credit, which carries in interest rate of 1% per month, mustbe repaid after harvest. At the locail level, BIMAS is generally organized,guaranteed and managed by the village head, who receives a management feefrom the Government. After the BIMAS program has been in operation inan area for two or three seasons, it is replaced by INMAS, which isessentially an agricultural extension program to encourage increased use ofinnuts. Under INMAS, farmers are no longer obliged to purchase the wholepackage of inputs, but may buy any amount of fertilizers and pesticides theywish. Despite the recent expansion of these programs, coverage is stilllimited; in the wet season of 1972/73, only about 16% of the project areawas under BIMAS and 30% under INMAS.

INDONBSIA

JATILUHUR LBRIGATION EXTENSION PROJECT

Agricultural Zones

Southern Area Northern Area Pro ec tZone III Zone I Zone II Zone IV Area

Area (ha): Total 24,000 8,000 11,000 8,C00 51,CCOCultivable Area. 24,000 6,600 9,6ro 6,800 7,OSwainp area (to bereclaimed) 0 1,300 1,500 1,200 h.,000

Elevation (m above MSL) Above 2 Less than 2 About 2 Above 2

Flooding Infrequent & Frequent and Frequent but Infrequent andshort duration prolonged short duration short dura,tion

Irrigation Sem.i-technical Rainfed Rainfed Rainfed & inunda-ticn from Cit[run2

River

Cropping Intensity (%) 143 100 12C 127 131

Population DensatX(persons per km ) More than 5co Less than 300 About h0 About 400

-NNEX 3Page 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Project Works

1. The project would have the following components:

(a) Rehabilitation of flood control embankments along theCitarum River;

(b) Flood diversion channel connecting the Cikarang and BekasiRivers directly with the sea;

(c) Drainage works - secondary and tertiary drains;

(d) Irrigation canal systems - secondary and tertiaryirrigation canals;

(e) Reclamation of swamp land;

(f) Roads:

(g) Pilot on-farm development works; and

(h) Buildings and other works.

The location of the major works is shown on Maps IBRD 10525 and 10526.

Rehabilitation of Citarum Embankments

2. The Citarum River embankments were constructed some 40 years agohut have deteriorated badly due to rain, pedestrian and livestock traffic,channel movement and very limited maintenance work. Some improvementswere made in 1961 after extensive overtopping and breaching. However, inspite of the storage now provided on the Citarum by Jatiluhur dam, severefloods on the Cibeet, Cikao and other tributaries in February 1973 whichconverge in the Citarum River, caused further overtopping and breachingwith prolonged flooding of agricultural land in the project area and inthe North Tarum area.

3. The embankments were underdesigned in many places and channel move-ment has created numerous potential breaching locations. Some 12 km on theleft bank and 5 km on the right bank require construction of new embankmentsset back from the existing channel. Embankment heightening, by an averageof 1 m, is required over 35 km on the left bank and 41 km on the right bank.Minor heightening and rehabilitation is necessary on another 22 km.

I

ANNEX 3Page 2

Flood Diversion Channel

4. Much of the project area, in particular the low-lying northernarea, is subject to annual flooding from rainfall and over-bank spill fromrivers, aggravated by restricted drainage outlets to the sea. Each yeara m:.nimum of 10,000 ha is submerged, in depths up to 1 m, for periodsranging from a few days to many weeks. While the Citarum is subject tooccasional overspill, overtopping on the Cikarang and Bekasi and othersmaller rivers is the major cause of annual flooding. In 1972, about 27,000ha of cultivated land was flooded even with no spill from the Citarum.

5. Whe existing qischarge capacity of tie Cikarang river decreasesfrom 100 m /sec to 15 m /sec in the 20 km embanked reach upstream of itsconfluence w.th the Bekasi river. With an estimated annual peak dischargeof 200 m /sec, flooding occurs on both sides of the Cikarang each year. 3The discharge capacity of the Bekasi river decreases similarly, from 370 a /secto 140 m3/sec over the 22 km reach upstream of the same confluen5e, which is8 km from the sea. The estimated annual peak discharge of 260 m /sec causesflooding over large areas each year. The smaller rivers of Jambe and Sadanglose their flood discharge capacity completely in the project area. Theannual peak flow of 90 m3 /sec in the Jambe and 55 m3/sec in the Sadang,contribute significantly to flooding.

6. Flood control is obviously essential for agricultural development.Over the years consideration has been given to various schemes for alleviatingthe flooding, including storage reservoirs on the Bekasi and Cikarang,enlargement of river channel capacity by relocation of embankments and bedexcavation, and excavation of a major flood diversion channel through theproject area to the sea. The latter proposal offers the best long-termsolution to flooding in the area and is incorporated in the proposed project.

7. The intake to the 26 km long flood diversion channel wouldbe located on the Cikarang, a short distance downstream of the existingbarrage. The first 12 km of channel would be excavated at a longitudinalslope of 0.7 m/km, picking up the waters of the Sadang and the Jamberivers. On entering the plain, the channel would flatten to a slope of0.25 n/km and continue at that gradient for 6 km to its junction with theBekasi river and for another 8 km directly to the sea.

8. Preliminary design of the channel assumes a bed width ranging from!5 m at its head to 50 m between the Bekasi and the sea. With side slopesof 2:1 and a design water depth of 4.2 m, the basic channel capacity isjus- above the annual flood frequency and represents the minimum designdischarge. Lateral embankments up to 2 m high would be provided about 200 mapart, primarily to provide overbank flood flow capacity up to the 1:100 yearflood frequency, but would also allow for bank erosion in the channel. Channela.w embankment design are based on optimization of construction cost with landacquisition and compensation for flood bank crop losses. The channel wouldbe unlined, with the final design cross-section governed by the bed and sideslope material.

ANNNFX 3Page 3

9. Waste weirs would he provided at each river crossing Artid ri-r.Ap

sills constructed where necessary to maintain the desitn hed lope., Sills

would also be provided in the existing Bekasi clhannel, tirstream of its

junction with the flood diversion channels. in view of the lower stage-

discharge relationship caused by the river's shorter outlet route to the

sea and the resultant higher flow velocities.

Drainage Works

10. The flood diversion channel will eliminate entirely the overbank

spiLl from the major rivers flowing through the project area, up to the

flood magnitude of 1 in 100 years frequency. The field drainage works

would, therefore, be required to prevent excessive submersion of rice

crons from rainfall only.

11. The key collector drains leading to the main outfalls are

classified as secondary drains. They would be aligned as much as possible

on existing channels, with drain sloDes generally following the natural

ground slope and wtith check structuires to control velocity as necessary.

The drains would be spaced from 1,500 m to 4,000 m apart and sized to

discharge 4 1/sec/ha, or about 80% of the peak tertiary drainage capacity.

The total length of secondary drainage would be about 300 km.

12. The secondary drains would collect water from small drainage

channels in the tertiary irrigation units. P;-eliminary designs, subject

to reviexw when improved mapping is available, plan tertiary units of150 ha-200 ha. The tertiary unit drains would have a minimum capacity of

5 l/sec/ha--capable of draining a 3-day storm rainfall likely to occur once

in 10 years in a 6-day period. The drainage capacity of a typical tertiary

drain wouldl therefore range between 750 1/sec and 1,000 1/sec. An

estimated 500 km of tertiary drainage would be constructed; contour line

and slope will govern final design and quantities.

Irrigation Canal Systems

13. Secondary irrigation canals would be designed on the basis of a

peak water duty of about 1 I/sec/ha. As 'ar as possible, existing canals

in the technical irrigation area would be enlarged and used as secondary

irrigation distributary canals taking the water from the West Tarum main

canal. Other secondaries would be directly linked to the main canal.

The bed of the Cikarang, from which headwaters would be diverted by the

flood diversion channel, would also be used as a rajor secondary irrigation

canal, with control weirs at Sukatani and Kemujing feeding tertiary canals.

About 270 km of secondary canals, with over 120 control and offtake

structures, would be constructed. All canals would be unlined, except at

road crossings, syphon, control structures, etc. About 120 km of canals

would be flanked by a 3 m inspection road, reserved for 0 & M vehicles.

14. The tertiary distribution system would be constructed for a

maxinium unit discharge capacity of 1.65 1/sec/ha, allowing simultaneous

filling in 15 days of all rice fields in a tertiary unit. The tertiary

ANNEX 3Page 4

of. f iz; woulc ½ge gated and water level regulators provided in the. econdary canal. Provis on for quaternary offtakes would be incorporate1in thle tertiary canal- banks. About 50()0 km of tertiary canal:; would beconstructed, concurrently with the tertiary drains to economicallyutllize drainage excavation for embankment fill.

r\eclamation of Swamp Land

15. About 4,000 ha of swamps would be drained and reclaimed. Theseswanns are primarily covered with aqaatic brushwoods and rmangroves. Afterchiey are drained the lands have to be cleared. In order to dry the land and"#ripen" the soils quickly, so that the area can be used for cultivation assooll as possible, more drains and sluices may have to be constructed thanin other non-swamp areas. It is not expected that these lands would needsoil amelioration. Once dried, the land should be suitable for immediatecultivation.

Roads

16. At present, the West Tarum area suffers badly from very limitedaccess facilities. It is essentially served only by the heavily ladeniorth Trans-Java Highway wit' three spur roads leading north into theproject area at Babelan, Sukatani and alongside the Citarum west bank toCabangbungin. The roads are generally in poor condition and becomeimpassable in the wet season. Many bridges on dirt secondary and field roadsbave collapsed over the years and vehicle access to much of the projectarea, in particular the large area between Bekasi and Cikarang Rivers, hasbecome impassible.

17. An essential component of the project development is the provisionof an adequate internal road system to facilitate public and trade communica-tion between the agricultural development area and the large market-enters of Karawang, Bandung and Jakarta; to aid agricultural extensionwork; and to enable efficient 0 & M of the project.

18. The new road system would, as far as possible, be aligned alongthe large irrigation or drainage canals to utilize excavated material fromcanals for road embankment fill and to limit acquisition of agriculturalland. All roads, other than those restricted to 0 & M traffic (para 13),wrould have a gravelled pavement, 3.5 m wide, with 1.5 m shoulder width oneacli side (Indonesia - Class III feeder roads). A total of about 170 kmof thlese roads would be constructed under the project. The West JavaProv.Incial Government through its Public Works Department would beresponisible for the satisfactory maintenance of these roads.Pi-o- on-farm Development Works

_ _t _ _

19. Provision of the proposed tertiary drainage and 4rrigation systemuader the project would be an innovation in irrigation projiect developmentin Java. On the rehabilitation projects 7 t has been the practice to-rovide only the off-take from a secondary canal and the initial 50 m of

ANNEX 3Page 5

tertiary canal, leaving completion of the tertiary system and on-farm worksto the farmers.

20. The intensity of agricultural development required to justifythe proposed major expenditures on flood control, drainage and irrigationcanals is such that double-cropping throughout the project area is essentialat the earliest practical date. Also the utilization of IIYV rice requires ahighler standard of water control at farm level. Tertiary unit constructionis, therefore, only the first stage in reaching full development and shouldbe followed by comprehensive on-farm development -- quaternary irrigationand drainage, access, land leveling, and possibly farm boundary realignment.

21. Such on-farm development has not taken place to date in WestJava and its fulfillment could be extremely complex in the project area withits large number of small holdings. It is therefore proposed to develop,under the project and at the earliest practical date, a wide range andseveral levels of pilot on-farm development areas such as with or withoutaccess roads beyond those along tertiary canals, with or without boundaryrealignment, varying spacings between quaternary irrigation canal anddrains, otc. To obtain a broad perspective of the problems and potentialsolutions for on-farm development in Indonesia, the pilot areas would belocated in differing types of tertiary units of projects recently rehabilitatedwith the assistance of IDA credits. The pilot on-farm studies would beadministered by PROSIDA for works on the Rehab I, III and IV areas and bythe Jatiluhur Authority on Rehab II and this project area. The projectconsultants would provide assistance as required by either agency.

22. A pilot area would comprise at least one fully equippedtertiary unit on each sub-project in the Rehab project areas. Thus, onthe Rehab I areas, individual pilot areas would be developed on the fourindividual sub-projects -- Way Seputi, Cisedane, Rentang and Glapan-Sedadi.Similarly on Rehab III, pilot areas would be developed on tertiary units onthe Sadang, Pemali-Comal and Ciujung sub-projects; and on Rehab IV on each ofthe five non-contiguous areas. On Rehab II, at least two of the pilotareas would be tertiary units in the West Tarum technical irrigation area,with other pilots in the North and East Tarum areas.

23. A total pilot area of about 4,000 ha on the four Rehab projectsareas would be under study during the initial 3 years of the JatiluhurExtension Project 6-year construction period. These would provide practicalapproaches to on-farm development which would be incorporated on about 1,000ha comprising six completed and fully equipped tertiary units in the Projectarea. By the time of completion of this extension project, sufficient datacould be available to enable optimum on-farm development throughout theremaining 50,000 ha, and other irrigated areas in Indonesia.

Buildings and Other Works

24. The major office, workshop and equipment requirements of theJatiluhur Authority for operation and ranagement of the whole Iatiluhurpro4ect area have been provided unuaer Credit 195-IND. The proposed project

ANNEX 3Page 6

would require iiited additional buildings for field engineering offices at!Iaura Bakti, Sukatani and Pebajuran, workshop and six new Rural ExtensionCenters for agricultural extension services.

ANNEX 4Page 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Water Supply and Demand

Water Supply

1. The water supply for crop production would be derived from rainfalland from the existing West Tarum main canal, distributed through a networkof secondary and tertiary canals. Water is supplied to the West Tarum maincanal by the Curug pumping station at the Curug barrage on the Citarumriver, and by diversion barrages on the Cibeet, Cikarang and Bekasi rivers.Regulation of water supply from the Citarum to the Curug pumping station isprovided by the Jatiluhur Dam, some 10 km upstream of the pumping stationwith a live storage capacity of 2,600 Mm3 . The dam incorporates a hydro-electric power plant with an installed capacity of 118 mW. Water isreleased to the river through the turbines and through two hollow jetvalves. The pondage between Jatiluhur dam and Curug barrage is large enoughto act as a re-regulation reservoir to allow the power plant to generatepeak power, if required, without affecting irrigation operation.

2. Irrigation water supply to the project area is part of theJatiluhur Authority's overall water-use plan for the development areacommanded by the Jatiluhur dam and the West, North and East Tarum maincanals. The dam and main canals were designed to provide water accordingto the following priority uses: (a) domestic use, including sewageflushing of rivers and canals passing through the city of Jakarta and itsplanned extension area (Jakarta Special District); (b) irrigation of aprojected net agricultural area of 236,000 ha; and (c) generation ofelectric power. The priorities of water-use and the operation principlesof the Jatiluhur reservoir, as developed by the Authority and approved bythe Government, are detailed in Appendix A attL.ched to this Annex.

3. The water supply available for the Jatiluhur Authority'swater-use plan was analyzed prior to commencement of the Second IrrigationRehabilitation Project (Credit 195-IND). Dependable supplies in a dryyear were developed from 19 years of observed flow data in the Citarumriver's data. The total average annual discharge of all rivers wasestimated as 12,200 million m3, with the Citarum providing 5,600 millionm3. The total available supply in a dry year (firm supply 75% of the time)was estimated as 8,700 million m3. Recent detailed hydrologic studiesby the Consultants to the Jatiluhur Authority have confirmed the datadeveloped in the original study. The following table gives estimates ofmean and extreme annual water availability from the rivers based on flowrecords and rainfall-runoff correlation reconstituted to cover the 49-yearperiod from 1919 to 1968.

ANNEX 4Page 2

Catchment Annual Flow (million m3)Area2 Minimum Maximum Average

River Km

Main RiverCitarum 4,600 3,380 8,850 5,650

Western RiversBekasi 412 495 995 695Cikarang 293 366 680 506Cipamingis 270 370 607 475Cibeet 536 643 1,055 820

Eastern RiversCikao 280 386 630 490Ciherang 108 148 282 205Cilamaja 231 307 585 422Cidienkol 200 240 480 348Ciasem 319 405 770 555Cigadung 157 202 425 296Cipunegara 922 955 1,990 1,390

Overall Water Resources 8,328 7,897 17,309 11,852

4. The water availability in a 1 in 10 dry year is estimated to be9,000 million m3, 4,100 Mm3 from the Citarum), with a seasonal distributionof 1,500 million m in the dry season (June to October) and 7,500 million m3

in the wet season (November to May). The water availability, reconstitutedon a monthly basis over the 49-year period, was utilized with the projectedwater requirements in a system operation study.

Water Demand

5. Water Supply to Jakarta and Proposed Eastward Extension. The WestTarum canal was constructed for the overall utilization of water resources ofrivers between Jatiluhur dam on the Citarum and the city of Jakarta. Thefinal reach of the canal, between Bekasi barrage and the tunnel at thecanal's end, was designed to provide a discharge capacity of 14 m3/sec.However, at present it can only accommodate 6.5 m3/sec due to banks collapse,siltation and vegetation growth. The canal is being rehabilitated under theSecond Irrigation Rehabilitation Project (Credit 195-IND). The tunnel hasa design maximum capacity of 10.8 m3/sec and discharges into the Ciliwung riverwLich passes through Jakarta city. The Ciliwung river water is used as asource of water supply for Jakarta and for flushing of sewage in theriv rs and canals in the city. At present, Jakarta is provided with about5 m /sec of water supply; 4 m3/sec come from the Pedjompongan I and II watertreatment plants which draw water from the Ciliwung river and 1 m3 sec fromgroundwater and from springs near Bogor. The remaining water in theCiliwung river (which equals the West Tarum canal discharge passing throughthe tunnel minus discharge taken by water treatment plants plus the naturalflow of the river) is used for flushing.

ANNEX 4Page 3

6. The two water treatment plants in Jakarta are undergoing rehabilita-tion and expansion.3 It is anticipated that by 1975 the plants would beable to produce 6 m /sec. Hence from the 10.8 m3/sec which could be drawnthrough the tunnel, there would be about 4.8 m3 /sec left to supplement theCiliwung river flow for flushing. The West Tarum discharge available forflushing will eventually reduce as demand for water supply in Jakartaincreases with extension of distribution system and increasing population. 3It is estimated that by late t980's, the maximum tunnel discharge of 10.8 m /secwould be fully utilized for water supply. Flushing water would then haveto come entirely from the natural flows of ,he Ciliwung and Sunter rivers.GOI recognizes this and studies for other supplementary sources of supplyare being carried out.

7. Since after rehabilitation, the last reach of the West Tarumcanal can carry 14 m3/sec, there will still be 3.2 m3/sec (14-10.8) whichcould be utilized in the Jakarta proposed eastward extension area. Thedevelopment of the eastward extension of Jakarta is estimated to requirea total water supply of 6.9 m3 /sec by late 1980's. It is planned that theremaining 3.7 m3 /sec would be drawn from the existing secondary canalswhich branch off from the West Tarum canal below Bekasi barrage (Map IBRD10525). The location and capacity of future water treatment plants toserve the Jakarta eastward extension area will, therefore, be dependent onthe design capacity of the canal system in this area, in particular theBekasi Tengah and Bekasi Barar canals. In finalizing the water supplydevelopment plans, the Jakarta Special District Authority must thereforeliaise closely with the Jatiluhur Authority.

8. Irrigation Demand. In determining the demand for irrigation, themodified Blaney-Criddle method was used. The effective rainfall usedvaries from 90% in the dry months to 53% in the wet months, with anannual rainfall effectiveness of about 70%. The field irrigation efficiencywas estimated to range between 60% and 80%. With a conveyance efficiencyof 80%, the overall system efficiency were ranged between 48% and 64%,with an average of around 55%. The water requirements were determined forthe total area of 236,000 ha k,erved by the Jatiluhur dam and the main canals,and on a monthly basis over the 4 9-year period from 1919 to 1968, takingaccount of the reconstituted mean monthly inflows from rivers diverted intothe canals. The mean monthly irrigation water requirements from Jatiluhurdam on completion of the whole project were found to be as follows:

Month J F M A M J J A S 0 N D Year

Water Require-ment (millionm3) 113 122 175 214 238 400 435 484 390 165 100 143 2,979

9. Power Production. The hydro-electric plant at Jatiluhur Damgenerates power as a by-product of water released for water supply andirrigation. The maximum water storage level of Jatiluhur Dam is atelevation 107 m HSL and power can be generated until the storage level falls

ANNEX 4

Page 4

to elevation 74 m MSL, i.e. a live storage for power generation of 2,000 Mm3

(at elevation 54 MSL where the hollow jet valves for adIitional irrigationwater release are located, the live storage is 2,600 Mm ). The firm monthlyenergy presently available at Jatiluhur power plant is 40 million kWh, withan annual energy production of about 600 million kWh.

~0. The Jatiluhur power plant is presently a major source of both baseload and peak power generation for the West Java electric grid. However,a new thermal power plant and several gas turbine units are under construc-tion and by 1980 the role of Jatiluhur power plant in firm power generationwill have diminished, and the reservoir and power plant would be operatedprimarily as a source of secondary energy. The prime aim in futurereservoir operation will be to meet first the priority demand of Jakartawater supply and irrigation and to generate energy while fulfilling thesedemands. The Government policy statement (Appendix A) confirms thisrole, with the proviso that in a dry year the irrigation water requirementcan be reduced to 90% of the theoretical water demand, if necessary, in-der to maintain the reservoir level above elevation 74 m MSL and thus

iaintain energy generation, as long as possible. The 10% allowable1-',ciency in irrigation demand will-have negligible effect on crop yields.

Adequacy of Water Supplies

11. A detailed system operation study was carried out by theJaLiluhur Authority and their consultants utilizing the water supply,irrigation and power criteria detailed in the preceding paragraphs. Thestudy was carried out on a monthly basis for the 49-year period with theJatiluhur reservoir as the key regulation facility in the system. In thesLudy, the water requirements were met from the various rivers, draininginto the East, North and West Tarum main canals to the maximum extentpossible (generally 50% of available monthly discharge or maxiTmu capacityof the intake structures). The reservoir was then operated to meet theieeds for water supply, irrigation (with allowable 10% deficit in a dryperiod), and power generation, in that order. Results of the study for anaverage year and a dry year are detailed below:

ANNEX 4Page 5

Average Year (Year 23 in System Analysis)

Dry Season Wet SeasonJune-October November-April Annual____.________________ _mm3 …..............

Net Water Demand on Jatiluhur Reservoir

Water Supply 192 173 365Irrigation 1,752 1,326 3,078Sub-Total 1,944 1,499 3,443

Allowable Irrigation Deficiency 61 (Aug) - 61

Total 1,883 1,499 3,382

Inflow to Jatiluhur 988 4,568,1 5,556Net Demand from Storage +895 -3,069-- 3 -2,174Annual Surplus 2,174 Mm (spilled)Annual Energy Produced 600 M.kWh (approx)

One in Ten Year Dry (Year 7 in System Analysis)

Dry Season Wet SeasonJune-October November-April Annual_____________________ m3 …............. .

Net Water Demand on Jatiluhur Reservoir

Water Supply 214 188 402Irrigation 2,439 1,01 3,540Sub-Total 2,653 1,289 3,942

Allowable Irrigation Deficiency 273 (5 mths) 11 (1 mth) 284

Total 2,380 _1278 3_658

Inflow to Jatiluhur 325 3,89711 4,222Net Demand from Storage +2,055 -2,619 - - 564Annual Surplus 564Mm (spilled)Annual Energy Produced 500 M. kWh (approx)

/1 Reservoir filling.

ANNEX 4Page 6

Conclusions

12. Tne operation studies led to the following conclusions:

(a) The inflows from Citarum anc other rivers together withdischarges from Jatiluhur reservoir would be adequateto meet the water supply requirements of jakarta and its 3eastward extension up to 17.7 n3/sec (10.8 + 6.9) or 46.5 Mm3

per month, as well as to meet the irrigatior. water demandof the whole Jatilunur project area every year. In a dry year,there would be an estimated deficiency in irrigation water duringthe dry season of less than 5%, which is less than half theallowable deficiency. The requirement in the wet seasonwould be fully met and the reservoir would be practicallyfilled to capacity every year.

(b) The minimum annual requirement from Jatiluhur reservoir tomeet demand for water supply of Jakarta and its eastwardextension would be about 300 Mam3 and the maximum around 450 Mm3,with an average of 400 Km3. This means that with goodoperation, the Jatiluhur reservoir could supply Jakartaand its eastward extension with about twice as much as the200 Mm3 the GOI has included in its policy statement (Appendix A).

(c) The practical fulfillment of the total water demand and main-tenance of power output is, however, very dependent on effec-tive utilization of the run-of-river supplies in the otherrivers and efficient operation of the Jatiluhur reservoir.This would require an effective telecommunication network toensure rapid transmission of hydrologic data - daily rainfallin the upper catchment and the irrigated areas, dischargemeasurements and gate openings at canal gaging stations, etc.- to a control center. Provision is made in Credit 195-INDfor the purchase and installation of the essential communica-tion equipment. Practical water regulation rules foroperation of the Jatiluhur water system, already developedunder the Authority's Water Management Studies, should beimplemented. With efficient water management, the annualgeneration of electric power would continue to be around thepresent 600 million kWh.

ANNEX 4Appendix APage 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Government Policy Statement on 1/The Operation of Haji Juanda (Jatiluhur) Reservoir -

In consideration of its multi-purpose aspects and ensuring its optimumuse without neglecting and leaving its basic design criteria, a firm policyfor the operation of the Haji-Juanda (Jatiluhur) Reservoir is needed.The primary elements which form the basis formulating its annual reservoiroperation plan are as follows:

I. The Haji-Juanda Reservoir has been designed to provide theadditional water for:

1. Water supply and flushing for Jakarta Special District,with a discharge capacity of maximum 14 m3/sec andamounting to approximately 200 million m3 of raw waterper annum;

2. Irrigation water requirements fox approximately 240,000 haof rice-fields with two crops per annum;

3. Hydro-electric power generation with an installedcapacity of 6 x 25 MW or an annual power productionoutput of approximately 700 million kWh.

II. In accordance to the above mentioned design-basis and theexisting regulation in force (Algemene Water Reglement 1936),to meet the various purposes of water uses, the reservoiroperations will be carried out duly to the following priorities:

Priority No. 1: Water supply and flushing of Jakarta SpecialDistrict;

Priority No. 2: Irrigation water requirements;Priority No. 3: Production of electric power.

Ill. In case of exceptionally dry years the deficiencies will not beshared equally between the three above purposes, hence thedistribution of the various supplies will be as follows:

1/ Reproduced from the original copy, approved at the May 17, 1973 meetingof the Ministerial Council of the Minister of State for Economy, Financeand Industry.

ANNEX 4Appendix APage 2

1. Water supply and flushing of Jakarta Special District witha discharge capacity of maximum 14 m3 /sec and amounting toa total of approximately 200 million m3 per annum;

2. Delivery of 90% of the irrigation water requirements; and

3. a) Power production will be in accordance with the dis-charged water reqiiired for Jakarta Special Districtand irrigation, while implementing the utilizationof Curug pondage as after bay will produce anadditional power for peak load.

b) Stopping the power production if the water levelfalls below the intake of the penstocks.

IV. Due to the fact that the total acreage of farmlands commandedby the Haji Juanda Reservoir of approximately 240,000 ha isnot yet fully equipped with the necessary irrigation conveyanceand distribution system, the completion and the rehabilitationof the Tarum West Main Canal which is still under way and theinstallation of the No. 6 generating unit which has beenpostponed until today, the expected output of the storagedwater in the reservoir will be as follows:

1. For Jakarta Special District water supply and flushing,the discharge capacity of maximum 14 ms/sec will beachieved in 1975;

2. Irrigation water supply for rice-fields in the:

wet-season amounting to an acreage of approximately240,000 ha;

dry-season of approximately 200,000 ha in 1972and increasing to approximately 240,000 hain 1980;

3. Hydro-electric power generation with an annual productionof approximately:

600 million kWh - with 5 x 25 MW installed capacity today,700 million kWh - with 6 x 25 MW installed capacity in 1977.

ANNEX 4Appendix APage 3

GOVERNMENT PLAN TO MEET THE JAKARTA WATER DEMANDS

As mentioned, the Haji Juanda Reservoir will meet some of the neededwater demands of Jakarta Special District, e.g. with a maximum discharge 3capacity of 14 m3 /sec and totally amounting to approximately 200 million mthus the other possible deficits must be supplied from other resources.

Various stucies and investigations have been undertaken by the Governmentto recognize the future prospective water demands of this district, whileconjunctory proposals for the solution of its problems have been forwardedby the Consultants engaged in those studies.

Although some potential resources have been identified e.g. rivers,possible dam sites and reservoirs, fu'rther comprehensive studies andinvestigations have to be undertaken before any decisions can be made.

I. Water Supply

At present the Pejompongan Treatment Plants with a totalcapacity of 5,000 1/sec are finished and in operation.Together with the Ciburial (Bogor) groundwater supplysystem, the total production capacity will be 5,300 1/sec.

An effort to increase the production capacity of the abovementioned existing plants by an additional 1,000 l/secand the construction of a new treatment plant of 4,000 1/seccapacity at Pulo Gadung in the eastern part of JakartaSpecial District are now in the initial implementation stage.

For all of these plants, its raw water input demands can besupplied by the allocated supply of the Haji Juanda Reservoir.

II. Flushing

As mentioned, the water requirement for flushing purposesas one component of the total water demand for JakartaSpecial District was also studied in the context of a compre-hensive water management system including its flood andstorm water disposal and its sewage and drainage system, whichcould not also be separated from the city's solid wastedisposal problem.

Preliminary findings of these studies did point out thatthere are various possible alternative solutions whichstill require further detailed studies before anyrecommendation with its complete project stages can befinally proposed, hence the water demand for flushingpurposes is still open for discussion.

ANNEX 4

Appendix APage 4

GOVERNMENT PLAN TO MEET THE ELECTRIC POWER DEMANDOF JAKARTA AiD WEST JAVA

i. Power Demand

The power demand projections are listed as follows:

1972 1973 1974 1975 1976 1977 1978 1979 ' 1980 Yrs.235 269! 311 ' 365 434 508 596 701 ' 827' MW.

II. Existing Condition

The installed capacity is: Hydro power 216.4 MWDiesel power : 24 MWSteam power 150 MW

Total : 390.4 MW

The total power production capacity is varying between 372 MWduring wet season and 262 MW in normal dry season. Taking intoaccount the largest power unit of 50 MW, a reserve powerequivalent must be deducted, so that the firm power capabilityis 212 MW.

III. Development Plan

1. A project aid from the IDA/World Bank for the MuaraKarang steam power plant of 2 x 100 MW is negotiatedand is expected to be completed in 1977.

2. From other countries an additonal 220 MW of gas turbinegenerating units are expected to be built simultaneouslyto compensate the expected power shortage during theperiod of erection of that steam power project.

The gas turbine generating units will be operating asfollows:

Years 1974 .975 '976MW ' 100d 40 80

3. After completion of the Muara Karang project the powercapability will be 362 MW (spare unit 100 MW).

4. The projected Saguling dam upstream of the Haji JuandaReservoir with an installed capacity of approximately400 MW with a production capacity of approximately 2,250million kWh per annum..

ANNEX 5Page 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Construction Schedule

1. The project's proposed six-year engineering and constructionschedule is shown in Chart No. 7910, with the tentative location of thefour civil works contracts shown on the inset map. The topographic mapping,essential for planning and design was completed in May 1974. The appointmentof consultants is scheduled for July 1974.

2. The first 11 months, from July 1974, comprise mainly planning anddesign activities, with award of the first major construction contractscheduled for mid-1975. The tender and award timing of the four civil worksconstruction contracts will be governed by the requirements for planningand design. To enable construction to commence in the 1975 dry-season, thefirst contract will cover some 7,000 ha between the western project boundaryand the Bekasi River. This area does not raise major design or constructionproblems and construction could proceed without the import of major heavyequipment.

3. The second contract will incorporate the major excavation worksfor the flood diversion channel and the main drains and outfalls, togetherwith all irrigation and drainage works in an 11,500 ha area. The possibleadvantages of using dredgers for excavation of the channels and outfallsin this area will be given consideration at the design stage. Severaltypes of heavy construction equipment would be required for the contract.

4. The third contract, adjacent to the Citarum river, would coverconstruction of irrigation and drainage works in an area of 16,500 ha andwould include rehabilitation and improvement of the Citarum flood embank-ments. The fourth contract is located in the southern region where someirrigation is presently available and where much of the existing drainageproblems would be relieved by construction of the flood diversion channelin the second contract. The contract includes irrigation and drainageworks in 16,000 ha.

5. Each contract would include the construction of all secondarycanals and drains and the tertiary irrigation and drainage networks toensure utilization of water at farm level immediately following contractcompletion. Road construction would also be included in the contracts,with consideration being given at the design stage to the incorporationof road works in any one contract area in the contract. Likewise theconstruction of buildings, stores and staff houses in each contract areawill be included in the contract.

ANNEX 5Page 2

6. Pilot on-farm works would be constructed in existir.g irrigatedareas of Rehab I, II, III and IV projects in 1975 and 1976, and in theproject area in 1976 and 1978 on areas completed to the tertiary level,with an assured water supply and drainage facilities.

ANNEX 6

INDONES .A

JATILUHUR IRRIGATION EXTEVNSION PROJECT

Cost EstinimatesI/

Item Local Foreign Total Local Foreign Totail- Rp Million ---- ---- UST Millicni ----

Civil WorksFlood Chanrnel 930 760 1,690 2.2 1.8 4.CCitarum Embankments 200 110 310 0.5 0.3 0.8Drains and Structures 2,160 1,230 3,390 5.? 3.0 8 -Secondary Canals and Structures 1,335 995 2,330 3.2 2.4 5.0Tertiary Drains, Canals andStructures 1,030 510 1,540 2.5 1.L 3.7

Reclamation of Swamps 100 70 170 0.2 0.2 0.4Roads 1,025 575 1,600 2.5 1.h 3.9Office kuildings, Stores,

Houses and Rural ExtensionCenters 170 - 170 0a4 - o °4

Sub-Total 6,950 475 11,200 16.7 10.3 27.0

Pilot On-Farm Development 415 - 415 1.0 - 1.0

Equipment and VehiclesConstruction Equipment and )Vehicles 10 50 60) o 1 o L o .f

Agricultural Extension Equipment 0 * ' and Vehicles 15 115 130)

Sub-Total 25 165 190 0.1 0. ThT

Jatiluhur AuthorityLand Acquisition 1,620 - 1,620 3.9 - 3.9Operation and Maintenanceduring Construction 3h0 - 340 0.8 - o.8

Agricultural Extension Services 575 - 575 1.4 - 1.4Specialists and Training 85 185 270 0.2 0.4 o.6Administration and Overheads 915 - 915 2.2 - .

Sub-Total 3,535 718 3,720 .5 0.4 o.9

Consulting Services 355 825 1,180 0.9 2.0 2.9

Physical Contingencies 1,120 5h0 1,660 2.7 1.3 h.C'

Sub-Total Project Cost 12,400 5,965 18,365 29.9 1l, 2..

2xpected Cost Increase due toIn lation 6,680 3,155 9,835 '6.1 ?.o . 3.

TOTAL PROJECT COST 19,080 9,i20 28,200 46.o 22.0 68.C'

1/ Errors due to rounding.

ANNEX 7Page 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Equipment List

1. Heavy equipment, including dozers, scrapers, graders, draglines,loaders, dumpers, rollers, trucks, concrete batching plants, and possiblydredgers, will be required by the project civil works contractors. Costsfor such equipment are included in the various civil works items in theproject's cost estimates. They could total about $7.0 million andprovisions have been made in the tender documents and civil works contractsfor the Authority to authorize advances to appointed contractors of up to20% of the value of his contract for the purchase of such imported construc-tion equipment and spare parts.

2. Vehicles and equipment for construction supervision, operation,and extension services would be purchased under the project by the JatiluhurAuthority. These are limited to requirements additional to the equipmentprocurement under Credit 195-IND. The estimated requirements and costs aregiven below:

ANNEX 7Page 2

/aEquipment List-

Estimated CostItem Quantity cif Jakarta

(US$)(a) Construction Supervision

Field vehicles 10 40,000Motorcycles 34 27,000Miscellaneous equipment - 20,000

Sub-total 87,000

(b) Operation

Raingages and flow-gaging equipment 60,000

(c) Extension Services

(i) Vehicles:

Field vehicles 12 48,000Motorcycles 125 100,000Bicycles 200 10,000

Sub-total 158,000

(ii) Equipment:

Paddy threshers & rice hullers 6 24,000Audio-visual aids 6 11,000Power tillers 18 26,000Soil tester kit 250 7,000Miscellaneous - 27,000

Sub-total 95,000

TOTAL 400'

/a To be reviewed by the Jatiluhur Authority and the Consultants.

ANNEX 8Table 1

INDONESIA

JATILUHIR IRRIGATION EXTENSION PROJECT

Estimated Schedule of Expenditures

Total Calendar YearItem 5ost 1974 197 1976 1977 1978 1979

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

Land Acquisition 3.9 0.1 0.8 1.2 0.9 0.9 -

Civil liorks 27.0 0.2 0.8 5.0 8.3 5.9 6.8

Equipment and Vehicles 0.5 0.1 0.2 0.1 0.1 - -

Consultants' Services 2.9 0.4 0.7 0.6 o.4 o.4 0.4

Spe^ialists and Training 0.6 - 0.1 0.1 0.1 0.2 0.1

Pilot On-Farm Development 1.0 - 0.2 0.2 0.2 0.2 0.2

Agricultural Extension Services 1.4 - 0.2 0.3 0.3 0.3 0.3

Operation and Maintenanceduring Construction 0.8 - - 0.1 0.2 0.2 0.3

Administration & Overheads 2.2 0.1 0.2 0.4 0.5 0.5 0.5

Physical Contingencies 4.0 0.1 0.3 0.8 1.1 0.8 0.9

Sub-Total 44.3 1.0 3.5 8.8 12.1 9.4 9.5

Expected Cost Increase dueto Inflation 23.7 0.1 0.7 3.0 6.0 5.9 8.0

Total Project Cost 68.o 1.1 b.2? 11.8 18.1 15.3 17.5

ANT1X 8Table 2

,TrILUTTpU I2J.IrGATIOX.' EXTF.20,T PRCJECIT

Eo'.me.ted Schedule of Disbursements

IL. Fiz.i ̂ -. Year Accumulated DisbursementsO!-C Seriestcr US$ Millicn _Equiv¢1Ient

19 7YTls+ 0.32nd 0.7

19761st 1.5,Ind 2 .5

1977ls' 4 5.0nrnd 7.5

19781st 10.52nd 114.0

1 18 7g

T t 7.52nd 21.0

2.9801St. 214 .0C2(nd 27.0

19 1Is 1 30.G

ANNEX 9Page 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Training

1. There is a shortage of trained and experienced personnel inalmost all agricultural and irrigation activitias in Indonesia. Thosetrained prior to World War II are either retirel or nearing retirement andthere is a severe shortage of qualified personnel to replace them and tostaff new positions. Consequently, more than the usual amount of stafftraining is provided in this project.

Irrigation Training

2. The Ministry of Public Works and Electric Power (MPEP) operatestwo institutes -- the Bandung Technical Academy (Akademi Teknik PekerjaanUmum and Tenaga Listrik) and the Surabaya Training Institute. Formerly,the Academy gave only formal academic courses towards degrees in civil,electrical and mechanical engineering and architecture but, since 1969,at the request of the Directorate General of Water Resources Development,it has provided three short refresher courses for irrigation sectional andsub-sectional officers and a course for irrigation construction foremen.The courses lasted for a period of three. months, training about 100 personsin total.

3. The Surabaya Institute was established in 1970 with the solepurpose of training old and newly recruited irrigation sub-sectionalofficers and gate supervisors (Pengamat). The course for new recruitscomprises three months of classroom study and nine months of actual fieldwork in an operating irrigation project. The course for officers who havealready been in service a few years, consists of three months classroomstudy only. Each of the courses trains about 40 men.

4. Though the Bandung Technical Academy has the capability andfacilities to give training to about 150 men per year and the SurabayaTraining Institute to about 200 men annually, the number of classes atand admitted to both the institutions have been below these levels,due to lack of operating funds. The costs of training at the BandungAcademy, including instruction, overhead and board and lodging of trainees areestimated at Rp 1,200 per trainee per day while the costs of SurabayaInstitute are about Rp 1,000. These costs do not include travel from thetrainees' hometown to the institutes.

5. The proposed project includes funds for training about 100 Pengamatand for awarding scholarships to 15 students taking academic courses fora B.Sc. degree (3 years) in civil, mechanical or electrical engineering.

ANNEX 9Page 2

These students would be obligated to work for the Authority after graduationas provided in GOI regulations. In addition, funds have been included forsending 15 selected officials for overseas training and study tours ofirrigation projects. The project consultants would make arrangements for theoverseas training of these officials.

6. Under the terms of reference of the consultants to be engagedunder this project, the consultants would be required to give in servicetraining to Authority counterparts in planning, design and construction.Foreign consulting firms would be encouraged to associate themselveswith Indonesian firms with a view to uplifting the capability of thesefirms. Indonesian engineers and technicians would undoubtedly benefitfrom these arrangements.

7. One of the duties of the expatriate 0 & M specialist to bedirectly employed by the Authority under the poject would be to train theAuthority's 0 & M staff. This specialist would be engaged for a period ofthree years.

Administration and Management Training

8. Administrative personnel to handle general administration andmanagement, personnel matters, budgeting, finance, accounting, stores'inventory, bookkeeping, etc. are essential for efficient operation ofthe Authority. These personnel are in short supply in Indonesia and thustraining would be provided to existing administrative personnel as well asto the new recruits in order to strengthen their capabilities. Both theInstitute for Management Research and Education (Lembaga Penelitian &Pendidikan Management - LPPM) and the University of Indonesia in Jakarta,give three months training courses in administration and management,specifically oriented for government officials and officials of semi-governmentalorganizations. Under the project, funds for the training of 25 administra-tive personnel have been provided.

Agricultural Training

9. Training in modern agricultural practices would be provided underthe project for all agricultural officers and extension workers working atthe Kecamatan (sub district) and Desa (village) levels in the wholeJatiluhur project area. Subjects to be covered in the training wouldinclude: (a) characteristics of new rice varieties and some important uplandcrops and modern agricultural practices for these crops; (b) irrigationwater management; (c) the use of fertilizers and pesticides; and (d) methodsand techniques of approaching, reaching and gaining cooperation of thefarmers. The training course would last about one month and would be conductedat the Rural Extension Centers.

10. In addition, workshops and seminars would be organized for senioragricultural officers and subject matter specialists, to help them gaina better knowledge of modern agricultural techniques, crop diversificationand project management. Training courses for project supervision, evaluationand reporting would also be given.

ANNEX 9Page 3

11. Training abroad, possibly in Japan where there are special coursesdeveloped by the Government for foreign personnel, would be provided foragriculturists, extension officers, and farmers. Fifteen agriculturists andagricultural extension officers would be sent for periods of 3 months each,to study and observe advanced farming methods on small farm holdings,agricultural extension techniques and farmers' cooperatives in rural areas.Costs for such training are included in the project.

12. Under the project, an internationally recruited agriculture exten-sion specialist would be employed directly by the Authority t? advise andassist on all matters pertaining to agricultural extension service andon-farm development in the whole Jatiluhur project area. One of his mainfunctions would be to advise and train Indonesian agriculturists and extensionofficers. This specialist would be engaged for at least three years.

ANNEX 10Page 1

INDONESIA

JATILURUR IRRIGATION EXTENSION PROJECT

Draft Terms of Reference of Consultants

I. Objectives and Scope of Services

1. The Government of Indonesia, through the Jatiluhur Authority, asemi-autonomous agency of the Government, desires to engage the servicesof a consulting firm to prepare plans, designs, specifications, tenderand contract documents; to provide construction supervision for theJatiluhur Irrigation Extension Project and associated works; and to assistthe Authority in formulating an on-farm development plan for the entireJatiluhur project area.

2. The Jatiluhur Authority would assigf. a number of professionaland technical staff to work with the Consultait's staff, and the Consultantwould be required to provide guidance and on-the-job training to suchstaff.

3. With a view to improving the capabilities of Indonesian engineersand engineering consulting firms, foreign consulting firms invited to sub-mit proposals are encouraged to incorporate in their teams proposed tobe assigned to this project, a reasonable number of suitably qualifiedIndonesians, or to associate themselves with Indonesian engineering con-sulting firms.

4. It is expected that consulting services would be required for asix-year period covering the design and construction works, beginning fromabout April/May 1974.

II. The Jatiluhur Irrigation Extension Project

5. The proposed project would provide flood control, irrigation anddrainage facilities, swamp reclamation and improved agricultural supportingservices to farmers, growing mainly rice, in a net area of about 51,000ha (gross area about 65,000 ha) under the cotmnd of the existing Jatiluhurdam and West Tarum main canal, to permit increases in cropping intensityand yield. The project area is located in the "Jakarta Plain", one of themost important rice producing areas of Java. The area is bounded in theeast and the north by the Citarum River, on the west by fish ponds, swampareas adjacent to the coast and by the planned industrial and residentialareas adjacent to the eastern border of the Special District of Jakarta,and on the south by the West Tarum main canal. The project is in Bekasidistrict (kabupaten) and extends over nine sub-districts (Kecamatan) with47 villages (Desa).

ANNEX 10Page 2

o. The feasibility study of the project was prepared by the formerconsultant (a joint venture of Coyne et Bellier and SOGREAH, France) of theAuthority. Report of the study is attached for ready reference.

7. The project consists of the following:

Part A: Civil Works

(a) Rehabilitation of about 115 kilometers of the existingflood embankments on both banks of the Citarum River;

(b) Construction of a major flood diversion channel of alength of about 26 kilometers to evacuate flood watersfrom the Cikarang and Bekasi Rivers to the Java Seaand related control structures;

(c) Construction of about 270 kilometers of secondary irriga-tion canals and about 300 kilometers of secondary drainagecanals to serve the Extension Area,

(d) Construction of about 500 kilometers each of tertiaryirrigation and drainage networks:

(e) Reclamation of about 4,000 hectares of uninhibited swampland for agricultural purposes;

(f) Construction of about 170 kilometers of new feeder roadsbetween farms and large marketing centers in the ExtensionArea; and

(g) Construction of office buildings, stores, staff housingand six rural agricultural extension centers.

Part B: E.quipment and Vehicles

Procurement of equipment and vehicles for the supervision ofconstruction and agricultural extension services.

Part C: Pilot On-Farm Development

Construction of works for pilot on-farm development areas coveringakout 3,000 hectares of the areas rehabilitated under the Irrigation

ANNEX 10Page 3

Rehabilitation I, III and IV Projects 1/ and about 1,000 hectates of areasrehabilitated under Irrigation Rehabilitation II project and 1,000 ha oft:is Drolect area.

Part D: Agricultural Extension Services, Training and Studies

(a) Upgrading and expansion of the agricultural extensionservices in the Jatiluhur Project Area;

(b) (i) overseas and local training of Authority staff,

(ii) overseas and local training of agriculturalistsand agricultural extension officers, and

(iii) local training of selected farmers from theExtension Area;

(c) Detailed survey and evaluation of the present andprojected financial situation of small farmers,landlords and sharecroppers in the Extension Area;

(d) Studies based on Part C of the Project to determinethe degree of on-farm development and farmerparticipation to be adopted in the entire JatiluhurProject Area and other areas of the Borrowers;

(e) Preparation of a long-term agricultxural developmentprogram for farmers in the entire Jatiluhur Project Area;and

(f) Cadastral mapping of the swamp lands in the ExtensionArea to be drained anid reclaimed under Part A(e)of the Project.

The project is expected to be completed by December 31, 1979.

III. Responsibilities of the Consultant

8. The Consultant is to be responsible for the planning, design,preparation of tender documents and for assisting in supervising

1/ Irrigation Rehab I Project comprises rehabilitation of Rentang, Cisidaneand Glapan-Sedadi irrigation svstems in Java and completion of a newsvstem in Way Seputih in South Sumatra.Irrigation Rehab II Pro1t, comprises rehabilitation of existing Jatilu-hur Irrigation Project.Irrigation Rehab III Project comprises rehabilitation of Ciudjung andPemali-Comal irrigation systems in Central Java and Sadang Project inSouth Sulawesi.Irrigation Rehab IV ProjecZ co-ii?rises rehabilitation of Pekalen-Sampeanirrigation systems in East Java.

ANNEX 10Page 4

construction works for Part A of the project; for the preparation of specific-ations and tender documents for Part B; for the design and assistancein supervisin£ the construction works for Part C; for providing trainingstecified in Part D(b) (i), and for assisting in carrying out studies inPart D(d) of the project. The responsibilities of the consultants areoutlined below:

A. Engineering Services

(a) Review of all pertinent reports, data, preliminaryproject planning and design for the project, inparticular the Feasibility Study dated February 1973and the aerial photo maps completed in May 1974;

(b) Formulation of final project concept;

(c) Formulation of design criteria for all structures,channels and canals including all necessary supportingfield and laboratory investigations;

(d) Preparation of detailed project layout, scope ofcontracts, engineering and construction schedules;

(e) Preparation of final plans, detailed designs,specifications and tender documents, for internationalcompetitive bidding of civil works under Part A(a) to (f)and local bidding for Part A(g) of Section 7;

(f) Preparation of cost estimates of project works;

(g) Assistance in pre-qualification of contractors,evaluation of bids and drafting of contract documents;

(h) Preparation of specifications of vehicles and equipmentto be procured by the Project and assistance in theirprocurement:

() Assistance in supervision of construction of all civilworks under Part A of Section 7, including certificationof monthly progress measurements for interim and finalpavments to contractors, approval of construction equip-ment, methods and materials, and direct supervisionof all works in relation to contract specifications;

(1) Preparation of several alternative approaches to on-farm development: prepare design and specifications of thepilot on-farm development areas and assist in supervisingtheir construction; altogether there would be about 20 pilotareas in the Rehab I, II, III and IV project areas and4-5 areas in this Jatiluhur Irrigation Extension Project,each area corresponds with a tertiary unit of 150-200 ha;

ANNEX 10Page 5

(k) Supplying data and information as will be needed by theAuthority in its preparation of O&M manual; and

(1) Provision of on-the-job training to Authority's staff andassist in arranging the overseas training for theAuthority's staff, agriculturalists and agriculturalextension officers concerned with Jatiluhur IrrigationProject.

B. Reports

The Consultant shall maintain full liaison with designated officersof the Jatiluhur Authority and regular project review meetings will beheld as determined by the Authority. In addition the Consultant shallprepare and submit to the Authority the following documents:

(a) An Inception Report, four months after the contractualstarting date of the Consultant, presenting the con-clusions and recommendations of the Consultant on items(a), (b), (c), and (d) of Section 8A;

(b) Quarterly progress reports, at calendar quarters,describing progress of works in detail and summarizingthe Consultant's staffing and activities during thereporting period and his work program for the comingquarter. The reports will present a summary statementof all Consultant's certified expenditures on the projectto that period and a detailed forecast of expendituresfor the coming quarter, together with a summary forecastfor the subsequent three quarters. Each report willincorporate updated schedules for all constructioncontracts; and

(c) A final report, on completion of the Consultants con-tractual services, incorporating a full set of "as-constructed" drawings and identifying all aspects of thecompleted project works which require specializedoperation and maintenance procedures, and detailing suchprocedures.

IV. Personnel and Services to be Provided to Consultant

9. The following will be provided by the Authority to the Consult-ant:

(a) (Personnel - This sub-sectio- is to be written by theAuthority. The Authority will state in details the kindand number of personnel, for instance civil engineeers,mechanical engineers, foremen, technicians, draftsmen,etc., it plans to provide to the Consulant, includingthe number of man-months or man-years for each person.

ANNEX 10Page 6

These personnel should be provided by the Authorityat no costs to the Consultant, or if the Consultantis expected to pay allowances or per diems, this shouldbe clearly stated with the monthly amount specifiedagainst each person or each kind of personnel);

(b) One negative and six copies of the 1:5,000 scale aerialphoto maps with contour interval of 0.50 m, coveringthe project area;

(c) All available aerial photog;aphs, maps, drawings,data, reports and any other information pertinent tothe execution of the contract;

(d) Reasonable office equipped with necessary furniture andutilities in the project area;

(e) All local transport facilities and equipment requiredby the Consultant;

(f) Reasonable furnished family living quarters acceptableto the Consultant;

(g) Exempt or bear the cost of, any taxes, duties, fees,levies or other impositions imposed under its laws andregulations or the laws and regulations in effect in itsterritories or any political subdivision or agency thereof,on the Consultant and his personnel (other than personnelwho are citizens or permanent residents of Indonesia) inrespect of:

(i) any payments made to the Consultant or to suchpersonnel in connection with the carrying out ofthe agreed-to-services;

(ii) any equipment, materials and supplies brought intothe country for the purpose of carrying out theservices and which will subsequently be withdrawntherefrom; and

(iii) any property brought into Indonesia by the per-sonnel of the Consultant and his dependents for theirpersonal use and which will subsequently be withdrawntherefrom upon departures of such personnel; however,to qualify for these exemptions, shipment of suchproperty will have to be arranged by contract nolater than three months after the arrival of the staffmembers;

(h) Facilitate prompt clearance through customs of any equipment,material and supplies required for the services and ofthe personal effects of the Consultant's personnel;

ANNEX 10Page 7

(i) Ensure that the Consultant's personnel and their dependentsare promptly provided with any necessary entry and exitvisas, residence permits, exchange permits and traveldocuments required for their stay in the territories ofthe Government; and

(j) Issue all necessary permits and authorizations for thecarrying out of the services.

V. Necessary Procedure to be Followed by Invited Consulting Firms

10. Invited consulting 'irms are requested to submit their proposals

addressed to , X(name) (address)

The proposals must reach not later than(name above)

(date and time)

11. The proposals should state clearly the following:

(a) Terms and conditions under which they would carry outthe duties and responsibilities specified above; financialterms are not desired at this stage;

(b) The proposed composition of the team (with names andqualifications) which they intend to assign to theproject both in the field and at the home office, numberof man-months of each individual, for both expatriateand Indonesian personnel. The Consultant would be expectedto incorporate in his team the reasonable number of suitablyqualified staff recruited in Indonesia, or provided to themthrough association with an Indonesian consulting engineeringfirm. The Consultant is also encouraged to sub-contractsuch works as sub-soil investigations, material testings,hydraulic model tasts, etc. to suitably qualified IndonesianInstitutes or firms, approved by the Authority; and

(c) A list of vehicles and equipment which they anticipatewould be required in the carrying out of their works.

ANNEX 10Appendix APage 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Draft Terms of Reference of Agricultural Extension Specialist

Post Title Agricultural Extension Specialist

Employer Government of Indonesia

Duty Statioi : Purwakarta/Curug, West Java, Indonesia

Date Required April, 1975

Duration Three years

Duties To work with Jatiluhur Authority, Ministry of Agri-culture and West Java Provincial Government in improv-ing the agricultu-al extension services in the entireJatiluhur irrigat:-on project area (236,000 ha). Theexpert will have the following duties:

1) to advise and assist in the development ofagricultural extension program;

2) to advise and assist in drawing up the programsfor upgrading and expansion of extensionservices, including the Rural Extension Centers,for meeting the overall program in (1) above,and to assist in their implementation;

3) to advise and assist in drawing up the plan andprogram for coordination and integration of variousextension activities for field crop production,fisheries, forestry, animal husbandry and plantationcrops at provincial, Kabupatan, Kacamatan andvillage levels and to assist in the implementationof such plan and program;

4) to advise and assist in preparing a trainingprogram and to give training for upgrading thecapabilities of the agriculttural extensionofficers and workers, including the trainingin water management techniques;

5) to advise and assist on the efficient disseminationof research results to the farmers;

ANNEX 1 0Appendix APage 2

6) to advise and assist on the diversification ofcrops; and

7) to advise and assist on all other matters related toagricultural extension services in the entire projectarea.

Qualifications The specialist should have experience at responsiblelevel in the setting up of agricultural extensionorganization. At least 10 years experience in agri-cultural development of which at least five yearsshould be in extension work, in particular in programdevelopment. Experiences in working in developingcountries is considered advantageous.

Language English essential. Working knowledge of Indonesianis considered an asset.

ANNEX 10Appendix APage 3

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Draft Terms of Reference of Operation and Maintenance Engineer

Post Title : Operation and Maintenance Engineer

Employer Government of Indonesia

Duty Station : Jatiluhur Dam, Purwakarta, Indonesia

Date Required April, 1975

Duration : Three years

Duties To assist the Jatiluhur Authority in the operation andmaintenance of its irrigation project comprising a netarea of about 237,000 ha in the province of West Java.The expert will have the following duties:

1) to assist the Authority in establishing efficientoperation and maintenance organization;

2) to prepare manuals and rules for the efficientoperation and maintenance of structures, embank-ments, canals and the irrigation and drainagesystems of the entire Jatiluhur project;

3) to supervise and train the Authority staff in theoperation and maintenance of the project; and

4) to advise and assist the Authority in all otheractivities related to operation and maintenanceof its project.

Qualifications : An operation and maintenance engineer with extensiveexperience in managing the operation and maintenanceof large gravity irrigation and drainage systems.Experience in teaching and conducting field trainingon this subject is advantageous. Experience in workingin developing countries is considered essential.

Language English.

ANNEX 11Page 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Operation and Maintenance

Organization

1. Operation and maintenance (O&M) of existing irrigation works inthe Jatiluhur project area is currently the responsibility of a sectionwithin the Irrigation Department, with much of the even routine decisionmaking falling on the Director of Irrigation. Lack of funds for O&M in thepast has limited the formation of an adequate organization.

2. Under Credit 195-IND funds to equip an adequate O&M organizationhave been provided and the Authority and their consultant are evolving anorganizational structure, and the budget requirements, which would effi-ciently operate and maintain the major structures and canals in the wholeJatiluhur project area.

3. The proposed organization, still under consideration by theAuthority, is shown on Chart No. 7851. It calls for the establishmentwithin the Irrigation Department of a Division, to be headed by a DeputyDirector, with full responsibility for O&M. The Jatiluhur project areawould be sub-divided into four districts, each headed by a District Engineer.The project area would be in the West District, with headquarters at Cikarang.The O&M Division headquarters would be at Curug, the control center forwatebr distribution to all the Jatiluhur project area's main canals.

4. O&M district organizations would have separate operation andmaintenance sections. The operations section for the project area wouldcomprise a middle grade engineer reporting to the District Engineer, fourtechnicians (water masters or 'pengamat') each in charge of a sub-area andabout 40 water distributors or 'juru', who are in charge of the allocationof irrigation water to farmers' fields from tertiary canals. The main-tenance section would comprise a middle grade engineer, two inspectors and twomaintenance teams equipped to undertake normal maintenance and repair workon gates, structures and embankments.

5. The Authority's consultant for the Credit 195-IND has prepareda report proposing the O&M organization and a draft O&M manual for theJatiluhur Irrigation Rehabilitation project area. These draft report andmanual have to he reviewed and expanded to include the proposed extensionproject area. Provision is therefore made in the project cost estimatesfor the Authority to obtain the services of a specialist O&M engineer fora period of three years to assist in this zask, and more importantly toassist in the implementation of the O&M organization and O&M activitiesas well as to train the Authority's staff.

AUNEX 11Page 2

6. O&M of works within the tertiary units would be the responsibilityof farmers, organized into 'Water User Associations' for each unit (150-200.a). Each association would be resporsible for establishing rotationalsc;Ž:edule and for the distribution of water to the farmers' fields according:3 cae amount available and the timing agreed among members. It would alsoDe responsible for organizing the repair and maintenance work within theunits. Each association would elect or appoint )ne Juru to carry out andoversee these activities under the Association's direction.

Cost of 2erat ion and _

7. The estimated costs of operating and maintaining all facilitiesfor which the Authority would be responsible are shown in Table 1 attached.These costs exclude road maintenance which would be the responsibility ofthe Provincial Government and is estimated to cost Rp 150,0001km, equivalentto Rp 500/ha for the roads in the project area.

ANNEX 11Table 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Cost of Operation and Maintenance /a

Annual Cost(Rp Million)

Salaries and Wages 120

Plant fleet (depreciation, spares, fuel) 200

Materials (cement, reinforcement, etc.) 220

Office expenses 100

O&M of Jatiluhur Dam (portion of irrigation) 120

Total Rp 760 millionor Rp 3,200 per ha

US$1.83 millionor US$7.7 per ha

/a For the whole Jatlluhur project area of 237,000 ha.

ANNEX 12Page 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Yields and Production cf Crops

Present Cropping Patterns, Yields and Production

1. The project area may be divided into four agricultural zonesdepending on topography, degree of flooding and availability of dry seasonirrigation (Annex 2, Table 1 and Map No. IBRD 10526). The basic distinction,however, is between the higher southern part of the area and the low, flatnorthern part which is more susceptible to flooding.

2. At present, rice is the dominant crop, while field crops coverabout 6% of the area during the dry season, mostly in the south. Overallcropping intensity is about 130%. During the wet season (November-April),100% of the cultivable area is under paddy cultivation. In the southernpart, where semi-technical irrigation is available, HYVs account for abouttwo-thirds and local varieties, one-third of the area. Yields are low,averaging 1.8 tons/ha, due to the unreliability of irrigation, limited useof inputs, shortage of credit facilities and low level of extension services(Annex 2). In the northern part of the project area, wet season paddy yieldsare much lower, averaging 1.2 tons/ha, because of frequent flooding inaddition to the other problems. Total wet season paddy production is about72,000 tons (Table 1). Net return to the project area is about Rp 4,100million, not accounting for labor costs (Table 3).

3. In the dry season (May-October) 35% of the southern part of theproject area is sown to paddy, over 80% of which is HYV and less than 20%local varieties. Yields are low, averaging 2.0 tons/ha. In the northernpart, dry season paddy, all local varieties, covers some 15% of the area.Yields average 1.3 tons/ha (Table 1). Some field crops, mainly maize,soybean, groundnut and vegetables, are also grown during the dry seasonon residual moisture. These crops presently cover about 8% of the land inthe southern part and 3% in the northern part of the project area. Yieldsare low, averaging about 2.0 tons/ha for maize, 1.0 ton/ha for soybean andgroundnut, and 10.0 tons/ha for vegetables (Table 2). Present dry seasonpaddy production is about 21,000 tons (Table 1), and field crop productionis about 6,800 tons (Table 2). The net return to the project area in thedry season is about Rp 1,400 million, not accounting for labor costs (Table 3).

Future Cropping Pattern, Yields and Production

5. In the future without the project, zonal features would remainthe same as at present. The southern part of the area would have unreliablesemi-technical irrigation with infrequenC flooding while the northern part

ANNEX 12Page 2

would remain under rainfed conditions and continue to experience frequentand prolonged flooding. Some improvements would be expected in the avail-ability of credit and use of inputs. Under these conditions, the cultivablearea and area sown to various crops is projected to remain the same as atpresent, while yields are projected to increase at 1% per year. Annualproduction from the whole project area would be about 111,000 tons of paddyand 8,000 tons of field crops (Tables 1 and 2), while net return to theproject area would be about Rp 6,400 million, not accounting for labor costs(Table 4).

6. In the future with the project, flood protection and year-roundirrigation would be provided for the entire project area. Although basictopographic differences between the higher southern part and low, flatnorthern part of the area would persist, zonal differences and the problemof flooding in the north would largely disappear. In addition, about 4,000ha of present swamp land in the north would be reclaimed and transformedinto good agricultural land, increasing the overall cultivable area from47,000 ha to 51,000 ha at full project development.

7. Cropping patterns would remain much the same as at present. Ricewould continue to be the dominant crop, though HYVs would replace most localvarieties. Field crops would cover about 15% of the area in the dry season,and overall cropping intensity would increase from 130% to about 195%.Improved on-farm development works, expanded agricultural supporting servicesand the increased availability and use of inputs, along with flood protectionand irrigation would lead to much improved yields.

8. During the wet seascn, 100% of the project area would be sown topaddy. In the southern part, 85% would be HYVs while in the north, newvarieties would account for 70% of the area. Average yields are expectedto range from 3.8 to 4.4 tons/ha for HYVs and from 2.8 to 3.1 tons/ha forlocal varieties in the northern and southern parts, respectively. Totalwet season paddy production would be about 195,000 tons, with net valueof about Rp 10,800 million, not accounting for labor costs (Tables 1 and 5).

9. In the dry season, paddy cultivation would cover 83% of the southernpart of the project area. 80% of the crop would be HYVs with yields averaging4.7 tons/ha. Average yields on local varieties would be around 3.5 tons/ha.75% of the northern part of the area would be under paddy, 70% of whichwould be HYVs with average yield of 4.2 tons/ha while 30% would be localvarieties with average yield of 3.2 tons/ha. Total dry season paddy pro-duction would be about 170,000 tons (Table 1). In addition, 8,500 ha ormore than 15% of the whole project area would be under field crops in thedrv season, with production estimated about 35,000 tons annually (Table 2).Net return from the project area would be about Rp 10,000 million in thedry season, not accounting for labor costs (Table 5).

ANNEX 12Page 3

Rate of Development

10. The GOI is expanding the BIMAS and INMAS programs to provide creditand inputs in the project area (Annex 2) and is already implementing aprogram, which the project would complement, to improve extension services(para 5.10-5.11). It is therefore expected that the continued spread ofnew rice varieties and improvement in farm management techniques would berapid, once irrigation water is available and on-farm development worksare constructed.

11. Project works, down to and including the tertiary irrigation anddrainage networks, would be completed in six years. The correspondingirrigated area would increase gradually at first, reaching the total projectarea of 51,000 ha by 1980 (Table 6). Construction of on-farm developmentworks would begin after the results of the pilot development area studiesbecome available by December 31, 1977 (para 5.08), on areas which areserved by tertiary networks. It is estimated that these works would becompleted at a rate of about 8,500 ha per year, and that on-farm developmentworks would all be completed by the end of 1983 (Table 6). Because inputsand extension services would be made available concurrently with the progressof project and on-farm development works, it is expected that small farmowners and tenants who rent land from the Forestry Department or from villageadiinistration would achieve full development yields as soon as they completeon-farm development works, or within four years of the availability ofassured irrigation water supply. Because sharecroppers generally have lessincentive to modernize cultural practices, it is assumed that their ultimateyields would be slightly lower than those of owners and tenants, and that itwould take them an additional five years to achieve these yields. Fullproject development would therefore occur in year 15, or 1988 (Table 6).

INDONESIA

JATILUHIIR IRRIGATION EXT___SION PROJECT

Yields and Production of Paddy

Present Without Project With ProjectArea Yield Production Area Yield Procduction Area Yield Production(ha) (t/ha) on '000)) 7 -t(h/a) (ton '000 (ha) 7t7h) (ton '0007

1/Southern AreaWet Season: Local Varieties 7,000 1.5 10.5 7,000 1.7 12.2 4,000 3.1 12.4

HYV 17,000 2.0 33.8 17,000 2.5 41.7 20,000 4.4 88,0

Dry Season: Local Varieties 1,400 1.5 2.1 1,400 1.7 2.4 4,000 3.5 1400HYV 7,_000 2.2 15.1 7,000 2 17.7 i36 002 4.7 75.2

Sub-total or Average 32,400 1.9 61.5 32,1400 2.3 74.0 44,000 4.3 189.6

Northern hrea iWet Season: Local Varieties 23,000 1.2 27.6 23,000 1.4 3?.2 8,000 2.8 22.4

HYV 0 - 0 0 - 0 19,000 3.8 72.2

Dry Season: Local Varieties 3,s200 1.3 4.3 3,200 1.6 5.1 6,000 3.2 19.4HYV O O O o - 0 14,100 4.2 59.7

Sub-total or Average 26,200 1.2 31.9 26,200 1.4 37.3 47,100 3.7 173.7

TotalWet Season: Local Varieties 30,000 1.3 38.1 30,000 1.5 44.4 12,000 2.9 34.8

HYV' 17,000 2.0 33.8 17,000 2.4 41.3 39,000 4.1 160.2Dry Season: Local Varieties 4,600 1.4 6.4 4,600 1.6 7.4 1CI000 3.3 33.4

YfV 7,000 2.2 15.1 7,000 2 5 17.6 i30i10 4.5 134.9

Total or Average 2/ 58,600 1.6 93.4 58,600 1.9 110.7 91,100 4.0 363.3

1/ Southern Area: Zone III; Northern Area: Zones I, II & IV (reference IBRD Map N.o. 1C(,52).2/ Discrepancy in average yields is due to rounding.

TNDONE SEA

JATMiJUHUR IRRIGATTON EXTENSION PROJECT

Yield Produc of Fie Crops

Present Without Project With ProJectZone Area Yield Production Area Yield Procluetion Area Yield Pr-oduetion

7iha 7i;Y (ton) Tha Wtha) (ton) T&7 (t/ha) riitFnMaize - Southen Area ,/1o000 2.0 2,000 1,000 2.3 2,300 3,000 2.8 8,500

- Northern Area 1/ 500 2.0 1,000 500 2.3 1,200 1,800 _ h,600

Sub-total or Average 1,500 2.0 3,000 1,500 2.3 3,500 4,800 2.7 13,100

Soybea 21_- Southern Area 850 1.0 850 850 1.2 1,000 1,000 1.5 1,500- Northern Area 400 1.0 400 400 1.2 500 1,300 1.5 2,000

Sub-total or Average 1,250 1.0 1,250 1,250 1.2 1,500 2,300 1.5 3,500

Ve s -Southern Area 150 10.0 1,500 150 11.7 1,800 900 15.0 13,0C0- Northern Area 100 10.0 1,000 100 11.7 1,200 5° O 10.0 2000

Sub-total or Average 250 10.0 2,500 250 11.7 3s0oo 1,400 13.0 1T,

TOTAL 3,000 6,750 3,000 8,000 8,500 34,60C

1/ Southern Area: Zone IV; Northern Area: Zones I, II & IV (reference Map IBRD 10526).

2/ Including groundnuts.

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Value of Production From The Project Area At Present

Avg FarmGate Gross Value Production Net Value Net ReturnCrop Area Yield Price of Costs 1/ of from

Production Production 2/ Project AreaTh7a (ton/ha) -- TR-- (/ha) --- ( millions)

Local PaddyWet Season 30,000 1.3 66,000 85,800 13,025 72,775 2,183.2

Dry Season 4,600 1.4 66,000 92,400 13,325 79,075 363.7

HYV PaddyWet Season 17,000 2.0 66,000 132,000 19,000 113,000 1,921.0

Dry Season 7,000 2.2 66,000 145,200 19,600 125,600 879.2

Maize 1,500 2.0 20,000 40,000 10,500 29,5G0 4.2

Soybean 1,250 1.0 55,000 55,000 14L,500 40,500 50.6

Vegetables 250 10.0 17,500 175,000 63,000 112,000 28.0

Total 61,600 5,1469.9

Cropping Intensity I/ 130%

1/ From Annex ll, Table 1. Excludes the cost of labor.2/ W;ithout oG!,L'ii&g for labor costs. X3/ Paned on p net. lrrigable area of 47,000 hp.

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Value of Production From The Project Area in Future Without Pro ect

Avg FarmGate Gross Value Production Net Value Net Return

21rp Area Yield Price of Gosts 1/ of fromProduction Production 2/ Project Area

(h-a (ton/ha) (Rp/ton) -- (--- ha -- T0/T1iT7s)-- o -

Local PgWet Season 30,000 1.5 66,000 99,000 13,750 85,250 2,557.5

Dry Season )4,600 1.6 66,000 105,6oo 14,050 91,550 421.1

HYV P5dayWet Season 17,000 2.4 66,000 158,h00 23,750 134,600 2,289.0

Dry Season 7,000 2.5 66,000 165,000 2)4350 140,650 984.6

Maize 1,500 2.3 20,f000 46,ooo 12,000 3h,0oo 51.0

Soybean 1,250 1.2 55,000 66,000 17,400 48.,6CO 60.8

Vegetables 250 11.7 17,500 204,750 74,000 130,750 .32.7

Total 61,600 6,396.7

Cropping Intensity 3/ 130%

1/ From Annex 1ih, Table 1. Excludes the cost of labor. x2/ Without accounting for labor costs.3/ Based on a net. irrigable area of 47,000 ha.

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Value of Production From The Pro,ject Area At Full Development

Avg FarmGate Gross Value Production Net Value Net ReturnCrop Area Yield Price of Costs 1/ of from

Production Production 2/ Project Area(ha) (ton/ha) T -(Rp/ha)7 - - -- (Rp millions)

Loc,a.lPaddyWet Season 12,000 2.9 66,ooo 191,400 22,725 168,675 2,024.1

Dry Season 10,000 3.3 66,000 217,800 23,925 193,875 1,938.8

HYV Paddw9106 7,6o25,0 3oWet Season 39,100 4.1 66,000 270,600 45,500 225,100 8,8o1.4

Dry Season 30,100 4.5 66,000 297,000 46,700 250,300 7,534.0

Maize 4,800 2.7 20,000 541,000 14,700 39,300 188.6

Soybean 2,300 1.5 55,000 82,500 21,800 60,700 139.6

Vegetables 1,400 13.0 17,500 227,500 95,000 132,500

Total 99,600 20,811.7

Cropping Intensity 3/ 195%

a- -0

1/ From Annex 14, Table 1. Excludes the cost of labor. w m

2/ Without accounting for labor costs.3/ Based on a net irrigable area of 51,000 ha.

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Summary of Cropping Pattern and Production

Cropped Area Production Net Return fromC_ __ed Area Productionthe Project Area

Present Future Present Future Present Future

------- ha ---- 'Om tons ---- --- Rp million ---

Wet SeasonLocal Paddy 30,000 12,000 38.1 34.8 2,183.2 2,023.8HYV Paddy 17,000 39,000 33.8 160.2 142L1.0 8,801.4

Sub-total 47,000 51,000 71.9 195.0 4,104.2 10,825.2

Dry SeasonLocal Paddy 4,600 10,000 6.4 33.4 363.7 1,938.8

HYV Paddy 7,000 30,100 15.1 134.9 879.2 7,534.0

Maize 1,500 4,800 3.0 13.1 44.2 188.6

Soybean 1,250 2,300 1.2 3.5 50.6 139.6

Vegetables 250 1 ,400 2.5 18.0 28.0 185.5

Sub-total 14,600 48,600 28.2 202.9 1,365.7 9,986.5

Total 61,600 99,600 100.1 397.9 5,469.9 20,811.7

1/ From Tables 1 and 2.2/ From Tables 3, 4 and 5, without accounting for labor costs.

ANNEX 12Table 7

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Rate of Implementation

Incremental NVP asTotal Irrigated On-Farm Development % of Full Project

Year Area (ha) Works Completed (ha) Development NVP

1974 0 0 01975 0 0 01976 1,800 0 11977 9,300 0 81978 23,800 8,500 24

1979 36,500 17,000 461980 51,000 25,500 741981 51,000 34,000 801982 51,000 42,500 861983 51,000 51,000 90

1984 51,000 51,000 941985 51,000 51,000 961986 51,000 51,000 981987 51,000 51,000 991988-2023 51,000 51,000 100

ANNEX 13

Page 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Marketing and Prices

Marketing Structure

1. Farmers sell their marketable surpluses mostly as stalk paddy 1/to village middlemen who supply the rice mills. With the spread of smallhullers, farmers are increasingly marketing rice themselves. A considerableamount of paddy is marketed immediately after harvest to pay debts and it isquite usual that the small farmers have to buy back their requirements oncredit later in the season.

2. Farmers usually keep dry stalk paddy in the house for home con-sumption and for some later sale to meet cash needs. A few large farmershave small outside storages built of wooden frame and floor with bamboosidings. Some villages have communal storages built in the same way. Ricemills and hullers usually have storage capacity and almost all have sun-dryingfloors. At present, there are 16 large mills and over 240 hullers inand around the project area, most of which operate at about half of theircapacity or less. Nearly all large mills have added mechanical dryers inrecent years. Most mills are privately owned and have ready access tosources of capital in Jakarta, Bekasi and other towns in the project area.It is therefore reasonable to expect that the private sector would expandthe milling and drying facilities in the area as production increases.

3. The marketing structure for field crops, such as maize, soybeansand groundnuts, is less developed because of their limited production atpresent. With the project, a five-fold increase in field crop and vegetableproduction is projected. However, it is expected that expansion of thepopulation in the Jakarta and Bekasi areas would absorb the increasedproduction and that existing marketing channels would easily adjust tohandle it.

Price Structure

4. Price fluctuations, caused L.y the uneven seasonal supply of riceand relatively even demand throughout the year on the one hand, and wideprice differences between anc within different regions of the country onthe other, have been a major government concern. Since 1968, GOI has

I/ Stalk paddy, or "padi kering," consis-s of the heads of rice cut off byhand, with about 15 cm oC the stalk left attached, so that the paddycan be tied in bundles. StaLk paddy, when dry, contains about 52%milled rice by weight.

ANNEX 13Page 2

operated a rice price stabilization program through BULOG, which is thegovernment agency responsible for most of the storage and movement ofrice over long distances, and for maintaining the price floor and ceilingby buying and selling rice at the appropriate times and places. In 1968,the first year of the program, the average annual retail price for milledrice varied from a low of Rp 26 per kg in Southeast Sulawesi to a high ofRp 63 in Jakarta. By 1970, the average annual price range between provinceshad been narrowed to betweer. Rp 40 and Rp 55, and the price held fairlystable at around Rp 45 per kg in Jakarta, except for January and February,when it was Rp 58.

5. The estimated future farm-gate price for paddy used in the economicanalysis was derived from the Bank's forecast for the world market price ofmilled rice in 1985 in terms of 1974 constant prices. In converting toa farm-gate equivalent price, it has been assumed that about 10% of riceproduction from the project would be milled into high grade (5% broken),60% into medium grade (20% broken) and 30% into lower grade (42% broken),so that the equivalent average world market price would be US$225 per ton ofmilled rice cif Jakarta. After making allowance for transport and handlingcharges, the equivalent farm-gate price of paddy would be about Rp 66 per kg.A somewhat lower price (Rp 55 per kg) was used in the farm budget analysisto reflect marketing imperfections under which farmers are often forced tosell their produce at low prices at or even before harvest time in orderto pay back their loans for inputs and other obligations.

1985 PriceStructure for Rice----- (Rp/ton) -- …--

Export price, fob Bangkok 93,375 /a

Ocean freight 8,300

Jakarta port handling charges andtransport to Bekasi 4,500

Wholesale price of rice, Bekasi 106,175

Paddy equivalent price, Bekasi /b 69,000

Milling costs /c 2,000

Handling and transport costs from farm to mill 1,000

Farm-gate price of paddy 66,000

/a Weighted average price in 1974 currency values, assuming 10% of milledrice to be higher grade (5% broken) at US$270 per ton; 60% medium grade(20% broken) at US$210 per ton; and 30% lower grade (42% broken) atUS$175 per ton. The weighted average is US$205 per ton fob Bangkok, orUS$225 per ton cif Jakarta, assuming US$20 per ton ocean freight.

/b One ton paddy - 0.65 ton rice.

/c Additional to the value of by-products to cover part of the milling costs.

ANNEX 13Page 3

6. The prevailing farm-gate price for maize (Rp 20 per kg) is somewhat

low in relation to the Bank's world market price forecast for 1985, while the

price of soybeans (Rp 55 per kg) is somewhat higher. However, as returnsfrom maize and soybean production are very small relative to total project

benefits, no attempt has been made to adjust these prices in the economic

analysis. In the case of vegetables, a weighted average price of Rp 17.5 perkg was used in the economic analysis.

ANNEX 14Page 1

IN DONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Crop and Farm Budgets

General

1. Annex 2 describes agricultural practices in the project area whileAnnex 12 shows present and projected future cropping patterns, yields andproduction. This annex presents crop production costs, labor requirements,crop budgets and farm budgets for typical farms.

Production Costs

2. Crop production costs for each crop are presented in Table 1.Current production costs are based on the project feasibility report andpersonal interviews conducted during appraisal in the project area. Someimprovements in farming practices are assumed for future "without project"conditions. The level of inputs for "future with project" conditions isbased on the package of inputs recommended by BIMAS, and results fromexperimental stations in West Java, including one in the project area.Prices of fertilizers and agro-chemicals used in economic analysis arebased on world market prices, whereas GOI subsidy prices are used in thefarm budget analysis (para 6(b)(iii)).

Labor Requirements

3. Total labor requirements for each crop are presented in Table 1, andinclude both family and hired labor; no distinction between the two is made.Monthly labor requirements by crop are presented in Table 2. It is estimatedthat 80% of land preparation is performed by buffaloes, and 20% by manuallabor. Detailed farm labor analysis is presented in Annex 15.

Crop Budgets

4. Crop budgets based on economic prices for cash inputs, as used inthe economic analysis, are presented in Table 3.

Farm Budgets

5. Separate farm models liave been prepared for the northern and southernparts of the project area. In the northern part, where rainfed paddy cultivationpredominates, the average farm size is 1.9 ha. In the southern area, which hasa rudimentary irrigation system, the average farm size is 1.1 ha.

ANNEX '4Page 2

6. Crops other than rice are of minor importance in the project area,and therefore only rice production has been considered in the farm budgetanalysis. To show representative farm budge!ts, seven basic farm models havebeen analyzed under two different condition.;: "Present" and "Future withProject" at full development. Details of farm production costs are presentedin Table 4, and the farm budgets appear in Table 5. Assumptions and definitionsused in the analysis are explained below:

(a) Gross Value of Production. The gross value of productionis valued at Rp 55 per kg of paddy, 83% of the projected1985 farm-gate price expressed in 1974 currency values.This reduction has been made to reflect various imperfectionsin the marketing system which usually result in the farmerreceiving a somewhat lower return than the prevailingmarket price (Annex 13).

(b) Production Costs

(i) Land Preparation. Throughout much of the project area,but especially on medium size farms, land preparation iscustomarily carried out by rented buffaloes. The rateof buffalo rental, including the driver's wage, isRp 6,500 per ha for full land preparation. At present,farmers with 0.5 ha or less do not hire buffaloes for landpreparation. It is assumed that buffaloes would replacemanual labor :.n land preparation on most of these farmsat full development. On the larger farms (2.5 ha), whichusually own some buffaloes, an annual charge of Rp 14,600has been included to cover the cost of draft animals.

(ii) Hired Labor. Labor availability on the farm has beenestimated to be between 50 and 60 man-days per month(for details see Annex 15). In addition to land prepara-tion, hired labor is usually engaged during transplantingand harvesting on most farms and throughout the year onthe larger farms. Much of the hired labor representsan exchange between neighboring farms. For the purposeof this analysis, only the cost of hired labor (andlikewise off-farm income as described in para 9) aboveand beyond that exchanged with neighboring farmers isaccounted for. The cost of hired labor in the farmbudgets was taken as Rp 120 per day for all activitiesexcept for harvesting, when payment is made in paddy andamounts to one-fifthl of the quantity harvested. The costof hired labor used in ti-he different farm models is pre-sented in Table 4.

(iii) Farm Inputs. These include seed, fertilizer and agro-chemicals. For the tradizional rice varieties, the

ANNEX 14Page 3

seeding rate is 40 kg/ha and for HYV, 25 kg/ha. The costof seed is estimated at the farm-gate price of paddyactually received by farmers (Rp 55 per kg) for traditionalvarieties and Rp 90 per kg for HYV. There is little useof cash inputs in the production of local rice varieties.For the cultivation of HYV, the BIMAS recommended applicationrates and prices are as follows:

AmountInput Recommended Unit Cost Total Cost

(per ha) (Rp) (Rp/ha)

Urea 200 kg 40.0 8,000TSP 45 kg 40.0 1,800Diazinon 2 1 1400 2,800Zinc Phosphide 0.1 kg 1000 100

Total 12,700Interest (7%) 900Cost perhectare Rp 13,600

The fertilizer price of Rp 40.0 per kg is subsidized under the BIMAS program.The corresponding market price which is used in the economic analysis isRp 75 per kg, which is derived from the Bank's 1985 projected world marketprice of US$111 per ton fob Europe and Middle East for urea, plus oceanfreight and internal transport and handling for a total of US$180 per tonat farmgate. At present, the use of cash inputs amounts to about 10 to 40%of the recommended dose. The entire package of inputs presented above isexpected to be applied to HVY at full development. In the economic analysisit is assumed that average fertilizer use on HYV's is presently 20% of therecommended dose, and will increase to 40% in future without the project. Inall cases, fertilizer application on local varieties is assumed to be 10%of that on HYV's (Table 1).

(c) Taxes. The IPEDA tax is based on 5% of net value ofproduction of the land. At full development, all theproject area would be classified as controlled irrigationand the average IPEDA rate would be about Rp 15,000 per ha.Other illegal taxes such as village taxes and contributionsfor village development, school construction and mosques,would by that time be eliminated. The voluntary villagelabor contribution (Gotong Rojong) of 3-5 days per month,which is made during slack periods, has not been accountedfor in the farm budget analysis.

(d) Other Expenses. This includes an allowance for farm imple-ments, depreciation, waste and losses. It is estimated to beabout 10% of the gross value of production.

ANNEX 14Page 4

7. Sharecropping. Only the sharecropper's income is shown in thefarm budgets (Table 5). Both income and costs are based on the prevailingcustom according to which land preparation and weeding are the sharecropper'sresnonsibility, seeds and transplanting costs are paid by the landowner,cash farm inputs, taxes and harvesting costs are paid jointly, and theharvested crop is shared equally.

8. Operation and Maintenance. The farm budgets include the O&M costsof the irrigation and drainage systems, which amount to Rp 3,200 per ha peryear (Annex 11). Other project charges, which are still under considerationby GOI, are not included in the budgets.

9. Off-farm Income. Very little is kncwn about the farmers' incomesfrom off-farm activities. Major sources of off-farm income are work onneighbors' fields during peak periods, fishing and trading. Based on avail-information, it is assumed that during periods when labor is not neededfor own or exchange farming operations, farmers earn about Rp 35 per dayfrom other activities. This is equal to the present pay rate for unskilledlabbr for a half day's work (3-1/2 hours).

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Crop Production Costs 1/

Local Paddy (Wet Season) Local Paddy (Dry Season) HYV Paddy (Wet Season) HYV Paddy (Dry Season)

Crop Present Future W Future W Present Future W Future W Present Future W Future W Present Future W Future W

Cash Inputs (Rp/ha)

Land Preparation 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500 6,500

Seed 2,200 2,200 2,200 2,200 2,200 2,200 2,250 2,250 2,250 2,250 2,250 2,250

Agro Chemicals 1/ 425 850 2,125 425 850 2,125 4,250 8,500 21,250 4,250 8,500 21,250

Other 3,900 4,200 8,700 4,200 4,500 9,900 6,000 6,500 12,300 6,600 7,100 13,500

0 & M Charges - - 3,200 - - 3,200 - - 3,200 - - 3,200

Total: 13,025 13,750 22,725 13,325 14,050 23,925 19,000 23,750 45,500 19,600 24,350 46,700

Labor Inputs (Mandays/ha)

Land Preparation 2/ 44 44 44 44 44 44 44 44 44 44 44 44

Nursery 6 6 6 6 6 6 6 6 6 6 6 6

Planting/Sowing 30 30 30 30 30 30 32 32 32 32 32 32

Weeding 35 35 35 35 35 35 40 40 40 40 40 40

Management 3/ 42 42 44 42 42 44 61 61 71 61 61 71

Harvesting./ 45 52 59 45 52 59 50 58 70 50 58 70

Total: 202 209 218 202 209 218 233 241 263 233 241 263

Maize Soybean Vegetables

Present Without With Present Without With Present Without With

Cash Inputs (Rp/ha) 10,500 12,000 14,700 14,500 17,400 21,800 63,ooo 74,000 95,000

Labor Inputs (Mandays/ha) 144 160 200 125 140 165 260 290 310

1/ At economic (unsubsidized) prices for fertilizers.

2! Assumes 80% by buffalo and 20% by manual labor.

3/ Fertilizer, spraying, bird protection, irrigation.

4/ Includes threshing, drying and transporting to farm.

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Monthly Labor Requirements for Various Crops (Man Days/ha) 1/

jan Feb 1ar Apr May jun Jul Aug Sep Oct Nov Dec Total

Crop

Local Paddy P 1/ 51 15 24 48 8 56 202(Wet Season) w 51 15 25 52 10 56 209w 51 15 25 56 15 56 218

Local Paddy P 56 51 15 24 48 8 202(Dry Season) W 56 51 15 25 52 10 209w 56 51 15 25 56 15 218

HYV Paddy P 56 19 37 51 10 60 233(Wet Season) W 56 19 39 55 12 60 241w 57 21 42 67 15 61 263HYV Paddy P 60 56 19 37 51 10 233(Dry Season) W 60 56 19 39 55 12 241w 61 57 21 42 67 15 263Maize P 35 28 21 21 35 140w 40 32 24 24 40 160w 50 40 30 30 50 200

Soybean P 31 25 19 19 31 125w 35 28 21 21 35 140w 41 33 25 25 41 43 43 251Vegetables p 65 52 39 39 65 260w 72 58 44 44 72 290w 78 62 46 46 78 310

1/ P = Present.W = Future without project.W = Future with project.

INDONESIA

JATILUHUR IRRI"ArION EXTENSI3M P;WZ4C0

Crop Budgets

Local Paddy (Wet Season) Local Paddy (Dry Season) HYV Paddy (Wet Season) HYV Paddy (Dry Season)

p 1/ W1/ w t/ p W w p W w p w w

Yield (tons/ha) 1.3 1.5 2.9 1.4 1.6 3.3 2.0 2.4 4.1 2.2 2.5 4.5

Farm-gate Price (Rp '000/ton) 66.0 66.0 66.0 66.0 66.0 66.0 66.0 66.0 66.0 66.0 66.0 66.0

Gross Value of Production(Rp '000/ha) 85.8 99.0 191.4 92.4 105.6 217.8 132.0 158.4 270.6 145.2 165.0 297.0

Production Costs (Rp '000/ha) 13.0 13.8 22.7 13.3 14.0 23.9 19.0 23.8 45.5 19.6 24.4 46.7

Net Value of Production(Rp '000/ha) 72.8 85.2 168.7 79.1 91.6 193.9 113.0 134.6 225.1 125.6 140.6 250.3

Labor Requirement(man-days/ha) 202 209 218 202 209 218 233 241 263 233 241 263

Yield (tons/ha) 2.0 2.3 2.7 1.0 1.2 1.5 10.0 11.7 13.0

Farm-gate Price (Rp '000/ha) 20.0 20.0 20.0 55.0 55.0 55.0 17.5 17.5 17.5

Gross Value of Production(Rp '000/ha) 40.0 46.0 54.0 55.0 66.0 82.5 175.0 204.8 227.5

Production Costs (Rp '000/ha) 10.5 12.0 14.7 14.5 17.4 21.8 63.0 74.0 95.0

Net Value of Production(Rp '000/ha) 29.5 34.0 39.3 40.5 48.6 60.7 112.0 130.8 132.5

Labor Requirement(man-days/ha) 140 160 200 125 140 251 260 290 310 w -

1/ P - Present; W = Future Without Project; W = Future With Project.

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Farm Production Cocts(Rp '000)

0.5 ha FarmSouthern Area 1.0 ha Farm Southern Area 1.0 ha Farm Northern Area 2.5 ha Farm Northern Area

Owner Owner Sharecropping 1/ Owner Sharecropping 1/ Owner Sharecropping 1/Present Future Present Future Present Future Present Future Present Future Present Future Present Future

Hired Labor Costs:

Land Preparation 2/ 0 6.5 6.5 13.0 6.5 .12.4 6.5 11.7 6.5 11.1 9.8 16.3 9.8 14.6Harvesting 0 3.5 2.3 11.1 1.0 5.1 1.1 8.8 0.5 4.0 4.6 41.3 2.1 18.8Transplanting 0 0 0 0 0 0 0 0 0 0 7.0 20.4 0 0

Other Production Costs:

Farm Inputs 3/ 5.6 15.2 9.8 27.7 2.9 10.2 3.5 23.4 0.8 8.2 14.6 66.2 9.0 28.5Taxes 4.0 10.3 6.5 19.5 3.3 i10.0 3.2 15.2 1.5 7.8 7.5 34.0 3.9 18.0OSM Charges - 1.6 3.2 - 1.6 - 3.2 - 1.6 - 8.0 - 4.0Other 4.0 11.5 7.5 22.3 3.4 10.1 3.8 17.5 1.6 8.0 9.3 41.3 4.3 18.8

Total Production Cost 13.6 48.6 32.6 96.8 17.1 49.4 18.1 79.8 10.9 40.7 52.8 227.5 29.1 102.7

Contribution by Landowner 4/ - - - - 12.0 38.3 - - 6.0 30.4 - - 21.2 96.2

Total Costs Including Landowner'sContribution 13.6 48.6 32.6 96.8 29.1 87.7 18.1 79.8 16.9 71.1 52.8 227.5 50.3 198.9

1/ Production costs shown in details are only the sharecropper's contribution.2/ Under present conditions land preparation is carried out with manual labor on the 0.5 ha farms and with buffaloes on all other farm sizes. Under future

conditions, all land preparation on the 0.5 ha farms are shown as being carried out with buffalo although in actual practice it is expected that on about20% of the poorer farms,owners would continue to utilize manual labor.

3/ Future use of farm inputs is based on the BIMAS recommended package of Rp 13,600 per ha.4/ Comprising full costs of seeds and transplanting, and half costs of cash farm inputs, taxes, OfM charges and harvesting costs.

. -4I -

INDONESIA

JATILUHUR IFRIGATION EXTENSION PROJECT

Farm Budgets

0.5 ha FarmSouthern Area 1.0 ha Farm Southern Area 1.0 ha Farm Northern Area 2.5 ha Farm Northern AreaOwner Farming Owner Farming Sharecropping Owner Farming Sharecropping Owner Farming Sharecropping

Units Present Future Present Future Present Future Present Future Present Future Present Future Present Future

Local Varieties (Wet) ha - - 0.2 - 0.3 0.2 1.0 0.2 1.0 0.3 2.5 0.5 2.5 0.8RYV (Wet) ha 0.5 0.5 0.8 1.0 0.7 0.8 - 0.8 - 0.7 - 2.0 - 1.8Local Varieties (Dry) ha - - - 0.2 0.1 0.2 0.2 0.1 0.1 0.2 0.5 0.3 0.3 0.5HYV (Dry) ha 0.25 0.5 0.5 0.8 0.3 0.7 - 0.7 - 0.5 - 1.7 - 1.2Total Cropped Area ha 0.75 1.0 1.5 2.0 1.4 1.9 1.2 1.8 1.1 1.7 3.0 4.5 2.8 4.3Crbpping Intensity % 150 200 150 200 140 190 120 180 110 170 120 180 110 170Total Paddy Production ton 1.6 4.6 3.0 8.9 2.7 8.1 1.5 7.0 1.3 6.4 3.7 16.5 3.4 15.0

Gross Value of Production Rp '000 88.0 253.0 165.0 489.5 148.5 445.5 82.5 385.0 71.5 352.0 203.5 907.5 187.0 825.0

Production Costs 1/ Rp '000 13.6 48.6 32.6 96.8 17.1 49.4 18.1 79.8 10.9 40.7 52.8 227.5 29.1 102.7

Net Farm Income Rp '000 74.4 204.4 132.4 392.7 131.4 396.1 64.4 305.2 60.6 311.3 150.7 680.0 157.9 722.3

Off-Farm Income Rp '000 20.0 20.0 15.0 10.0 20.0 15.0 15.0 10.0 20.0 15.0 10.0 - 15.0 -

Payments to Landowner Rp '000 - 74.2 222.8 - - 35.8 176.0 - 93.5 412.5

Net Farm Cash Income Rp '000 94.4 224.4 147.4 402.7 76.2 188.3 79.4 315.2 45.8 150.3 160.7 680.0 79.4 309.8

1/ Production costs on sharecroppers' farms exclude the landowner contribution. Payments to the landowner are equivalent to half the gross value of production.

541

ANNEX 15Page 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Farm Labor Analysis

Labor SuppE

1. There are no comprehensive, reliable statistics on population andlabor force in the project area. However, a sample survey of villages in theproject ar,-a indicates that there are about 36,000 farm families in the area,each averaging 6.8 persons, of whom 3.5 are potential labor force (age 15-60).From this potential labor force, one person is usually assigned to domestichousework and is not available for farm work. The number of large land-holders or wealthy families in the project area who would not contribute tothe labor force is insignificant. Therefore, the present available laborsupply is estimated to be about 90,000 farm laborers. Assuming a farm laborgrowth rate of 2.0% per year, the labor force available for farm work wouldincrease to about 121,000 workers at full development in 1988.

2. assuming 240 working days per worker per year, the annual laborsupply wou:ld increase from about 22 million man-days at preseat to about29 million man-days at full development, or an average of aboit 2.4 millionman-days per month. During peak agricultural periods, farmers tend to worklonger hours, more days per month, and also reduce their household activities.At these peak periods the "stressed" labor supply is accordingly estimated atabout 3.0 million man-days per month, or an increase of 25%.

3. In the past, there has been very little labor m-ovement into orwithin the project area, due to inadequate employment opportunities, highpopulation density and poor transport conditions. With the project, tran-sportation facilities would improve, but little increase in labor mobility isexpected, since the local labor supply would continue to satisfy local laborrequirements (para 5 and Table 1).

Labor DemalLd

4. In addition to farm production activities, the labor force in theproject area can undertake (a) on-farm development work lncluding main-tenance of quaternary irrigation and drainage canals and small structures,(b) village development works including improvements and maintenance ofexisting works, (c) construction of new project facilities, and (d) off-farm activ:ities. Labor for categories (a) and (b) would be supplied out ofthe local farm labor force during off-peak periods. The market for laborin category (c) is well organized and such labor is assumed to be drawnfrom contracting firms and pools of partly skilled labor outside theproject area. Thus, the analysis of labor demand concentrates on farmproduction and off-farm employment activities.

ANNEX 15Page 2

5. Istimates of monthly farm labor requirements per ha for ricecultivation are given in Annex 14, Table 2. Estimates of total farm laborrequirements for the project are given Ln Table 1 of this Annex. Atpresent, tl,e total annual labor requirenent is about 13 million man-days,or about 60% nf the estimated total supply. However, peak monthly demand ofover 2.6 million man-days in December approximates full employment con-ditions. At full development, the total labor requirement is estimatedat almost 25 million man-days with the project and about 13 million man-dayswithout the project. Without the project, total annual labor requirementwould be less than half the available labor supply, leaving substantialunemployment throughout most of the year, although 90% of the "stressed"labor force would be employed in the peak month of December. With the project,the employment situation would improve considerably, with the total annualrequirement increasing to some 85% of supply, almost full employment inApril and December, and much less pronounced seasonal fluctuation.

Economic Cost of Farm Labor

6. The proper assessment of the economic cost of farm labor is acomplicated issue involving a number of value judgments as well as exten-sive empirical data on farm and off-farm employment. Detailed information onwages actully paid in the project area is scarce, payments vary seasonallyand geographically within the area, and payment is often in kind, makingcomparisons difficult. Information on off-farm employment is even morefragmentar). The following analysis should be read with these limitations inmind. In addition, the analysis disregards:

(a) the value of leisure;

(b) problems of income distribution between the varioussegments of the population; and

(c) the relative importance of saving and consumption.

Thus, the analysis given here deals only with the opportunity cost ofoutput foregone in other employment in the project area, and is based oninformation containing a large subjective element.

7. Rp 150/day is given as the nominal farm wage rate in all seasonsfor adult male labor. However, interviews with farmers and other localsources indicate that the market value of farm labor ranges between Rp 100and Rp 200 per day for adult males, and as low as Rp 35 for half-day weedingand fertilizer application by women or children. Based on this information,the weighted average market wage rate for all types of labor is estimatedat Rp 120 per man-day.

8. Ihe estimation of the lower limit of the economic wage rate isbased on two components. The first is the minimum opportunity cost ofalternative non-farm employment in activities such as fishing, minor trades,cottage industry and maintenance works. This is estimated at Rp 20 per dayon the average. The second component is the cost of the increased nutritional

ANNEX 15Page 3

requirement which results from shifting a laborer from an activity suchas fishing to more demanding farm work. This cost is also estimated to beabout Rp 20 per day for a total of Rp 40.

9. On the basis of all available information about the project areaand experience from similar areas, it is postulated that the marginal oppor-tunity cost of labor supplied for farm work in the project area can berepresented by an "S-shaped" curve. The marginal opportunity cost of farmlabor is positive at all levels of demand and increases as more and morelabor is drawn into farm work. The increase in opportunity cost is slowinitially, reflecting the scarcity of productive alternative employment, butincreases more rapidly as the full labor supply is utilized. At the employ-ment level corresponding to full employment of family labor in the projectarea, the opportunity cost is assumed equal to the market wage rate. If thedemand for farm labor were to increase beyond this level, the opportunitycost would continue to rise, though at a slower pace. At about Rp 140 or 20%above the present market wage rate, it is postulated that the opportunity costcurve would flatten out, since at that wrage large numbers of laborers fromother areas would come to work on farms in the project area.

10. In practice it is reasonable to approximate the idealized 'S-shaped"curve by three straight line segments as shown in figure 1, which presentsthe marginal opportunity cost of labor as a function of the quantity of labordemanded. Once such a curve is constructed, it is easy to estimate the totalopportunity cost for any level of farm employment - it is simply the areaunder the marginal opportunity cost curve up to the given level of labordemand. Based on figure 1, the estimated marginal and total economic costof farm labor, under "with project" and "without project" conditions bymonth are shown in Table 2. Evaluated in this way, the annual economic costof farm labor at full development is Rp 1,520 million "with the project" andRp 740 million "without the project". The incremental economic cost of labor,amounting to Rp 780 million, accounts for about 11% of the incremental netbenefit to the project area at full development (without accotuting for laborcosts) of Rp 6,055 million (Annex 12, Tables 3 and 4). The foregoing analysisassigns an average value to labor over t:he course of the year which wouldhave resulted if all incremental labor were evaluated at 58% of the estimatedmarket wage rate of Rp 120 per man-day.

12. Because of data limitations, the estimated opportunity cost curve(Figure 1) is to some extent a matter of subjective judgment. However, thethe imputed incremental wage bill is rather insensitive to changes in theshape of the curve and, accordingly, it is felt that the above results area good measure of the increased cost to the economy of incremental farm labor,even after allowing for a reasonable degree of possible error in estimation.

13. The above analysis is applicable only at one point in time; atfull development of project benefits in 1988. Similar analyses should be donefor other times to take into account changing demand and supply conditions,but the quaLity of the available data does not warrant such a refinemiient.Hence for economic analysis it is assumed that:

ANNEX 15Page 4

(a) during project implementation, the imputed labor cost isin the same proportion to the net production value (beforecosting labor) as at full project development; and

(b) after full project development, the above analysis isapplicable unchanged over the remaining project life.

INDONESIA

JATILUHUR IRRICATTON FXTENSTON PROJECT

Total Monthly Requirement of Farm Labor (man-days '000)

Area Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total(ha)

Rice: Local Varieties P11 29,500 1,505 443 708 1,416 236 - - - - - - 1,652 5,960

Wet Season W 29,500 1,505 443 738 1,534 295 - - - - - - 1,652 6,167

W 11,400 581 171 285 638 171 - - - - - - 638 2,484

Rice: Local Varieties P 4,600 - - - - - 258 235 69 110 221 37 - 930

Dry Season W 4,600 - - - - - 258 235 69 115 239 46 - 962

w 10,000 - - - - - 560 510 150 250 560 150 - 2,180

Rice: HYV P 17,000 952 323 629 867 170 - - - - - - 1,020 3,961

Wet Season W 17,000 952 323 663 935 204 - - - - - - 1,020 4,097

W 39,100 2,229 821 1,642 2,620 587 - - - - - - 2,385 10,284

Rice; HYV P 7,000 - - - - - 420 392 133 259 357 70 - 1,631

Dry Season W 7,000 - - - - - 420 392 133 273 385 84 - 1,687

W 30,100 - - - - - 1,836 1,716 632 1,264 2,017 452 - 7,917

Field Crops 2/ P 3,000 - - - - 108 86 65 65 107 - - - 431W 3,000 - - - - W22 97 73 73 122 - - - 487

W 8,500 _ - - - 443 355 266 266 443 100 100 - 1.973

Total P 61,100 2,457 766 1,337 2,283 514 764 692 267 476 578 107 2,672 12,913W 61,100 2,457 766 1,401 2,469 621 775 700 275 495 624 130 2,672 13,400W 99,100 2,810 992 1,927 3,258 1,201 2,751 2,492 1,048 1,957 2,677 702 3,023 24,838

1/ P = Present. ILW = Future without project.W = Future with project.

2/ Including maize, soybeans and vegetables. ix

INDOESIA

JATWIUHJR IRRIGATION EXTENSION PROJECT

ESTThATED OPPORTUNITY COST (URVE: FOP FARM LABOR

1140 _ _ _ _ _ _ _ _ _ _

120

'-100

8O 0

E0-4 60_ _ __ _

_5 _._ 1.5 2.0 2.5 3.0 305 4.o0

FARM LABOR DEKAND (MILLION MAN-DAYS/MONTH)

ANNEX 16Page 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Economic Analysis

1. The following assumptions were made in evaluating the project'srate of ret:urn:

(a) Benefits. The expected yields, prices, gross returns,production costs, net returns (without accounting forlabor costs) and labor requirements per ha, for variouscrops are shown in Annex 14, Table 3. Because share-croppers would have less incentive to modernize culturalpractices, their average yielids at full development areassumed to be somewhat lower than those on landowner ortenant (lease holder) fields. Produce prices used in theeconomic analysis are estimated farmgate prices based onthe Bank's latest estimates of world market prices for1985 and are discussed in detail in Annex 13.

(b) Subsidies. Under the BIMAS program, farmers pay a subsidizedprice of Rp 40 per kg for urea and TSP. An economic farmgateprice of Rp 75 per kg (US$180 per ton) has been used in theeconomic analysis (Annex 14).

(c) Investment Costs. All investment costs used in the analysisexclude price contingencies. Also, costs which are commonto the whole Jatiluhur project: area have been prorated inthe following manner: half the cost of the Citarum embank-nent was charged to the project; costs of the two specialists(for agricultural extension and operation and maintenance)and training were charged on a per ha basis with the projectarea accounting for about 18% of the total; and one third ofthe overall cost of the agriciiltural supporting services wascharged as a project cost.

(d) Construction Period. Construction period for all projectworks down to and including tertiary irrigation and drainagesystems is six years.

(e) On-Farm Development lWorks. Construction of on-farm develop-ment works would begin in the dry season of 1978, afterresults of pilot on-farm development studies are available,and will be completed throughout the project area by theend of 1983, four years after completion of project works(year 10).

ANNEX 16Page 2

(f) tievelopment Period. Full benefits would be achieved con-currently with the completion of on-farm development workscn owners' and tenants' fields (year 10), and five yearslater on sharecroppers' fields (year 15).

(g) Iricing of Labor. Farm labor was evaluated at a shadoww'age rate equal to its opportunity cost, which variesseasonally and is equivalent to pricing all incrementalfarm labor at Rp 70 per man-day, or 58% of the marketwage. Detailed analysis is presented in Annex 15. Themarket wage rate of Rp 120 per man-day was applied tolabor used in project construction.

2. Using the foregoing assumptions and discounting project benefitsand costs over a 30-year evaluation period, the economic rate of return isestimated to be 42% (Table 1). It is further assumed that civil worksconstructed under the project would have a residual value of 33% (at constant1974 prices) after 30 years.

3. Several of the basic assumptions made in the economic analysishave been varied, in order to examine their impact on the rate of return.These factors include delays in on-farm development, a reduction inthe cropping intensity, costing farm labor at the market wage of Rp 120per man-day, a reduction in fertilizer use due to possible worldwideshortages, an increase in construction costs and extension of the constructionperiod. The extent of variation from the basic assumptions and the resultingeconomic rates of return are described below.

ANNEX 16Page 3

Alternative Rate of Return

(a) (On-farm works implemented over a nine-yearlieriod 37

(b) (On-farm works implemented over a fourteen-year period 34

(c) Nlo on-farm works 31

(d) Cropping intensity reduced from 195% to 175% 37

(e) Farm labor costed at the current market rateof Rp 120 per day 41

(f) Use of fertilizer reduced by 251 over the lifeof the project as the result of possible worldwideshortages and yields at full developmentcorrespondingly reduced by 25% 25

(g) Construction costs increased by 25% 36

(h) Construction period extended by two years 31

(i) Construction costs increased by 20% and con-struction period extended by two years 27

4. The economic rate of return does not measure fully the priorityof the project from a social point of vLew. Slightly more than half theincremental income generated by the project at full development would accrueto small farmers (0.5 - 2.5 ha) who own their own land, and tenants (lease-holders) who rent lands from the Forestry Department and village administration.Their average income is now about half the national average, and at fullproject development it would be at or sLightly above the projected nationalaverage. About a quarter of the incremental income would go to very poorsharecroppers whose average incomes would increase from about one-fourththe national average presently to about half the projected national averageat full project development. The remainiing quarter would represent the netearnings of landlords who do not farm, but receive payment from the share-croppers. Little is known about these landlords. Presumably they havesources of income additional to the relatively small net amounts they receivefrom sharecroppers. They may represent the better educated who work inJakarta while sharecroppers till their small farms, or they may be owner-operators on one small parcel and landlords on another. However, there isno indication of affluence or large size of landholding in the project areaand, although these landlords may have incomes above the national average,it is unlikely that they are many times as rich as the average.

ANNEX 16Table 1

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

Economic Coats and Benefits

(Rp Million)

Incremental ProJect Costs Incremental Project Benefitsmapi- Exten- FIam

Year tal l/ O&M sion 2/ Labor Total Paddy Other Total

1974 415 0 0 0 415 0 0 01975 1,328 0 125 0 1,453 0 0 01976 3,1444 6 166 8 3,624 140 4 14141977 4,8l14 30 166 62 5,072 1,124 29 1,1531978 3,735 76 208 187 4,206 3,371 89 3,14601979 3,901 117 166 358 4,542 6,461 170 6,6311980 456 163 125 576 1,320 10,393 2714 10,6671981 622 163 125 623 1,533 11,236 296 11,5321982 456 163 125 670 1,414 12,079 318 12,3971983 332 163 125 701 1,321 12,641 333 12,9741984 0 163 125 732 1,020 13,202 348 13,5501985 0 163 125 748 1,036 13,483 355 13,8381986 0 163 125 763 1,051 13,764 363 14,1271987 0 163 125 771 1,059 13,905 366 114,2711988-2002 0 163 125 779 1,067 14,045 370 14,4152003 -3,7352' 163 125 779 -2,668 14,045 370 14,415

Economic Rate of Return 142%

1/ Includes cost of on-farm development.2/ Includes specialists and training through 1979.3/ Residual value of civil works (33%).

INDONESIAJATILUHUR iRRIGATION EXTENSION PROJECT

DESIGN AND CONSTRUCTION SCHEDULE

1973 1974 1975 1976 1977 4 , POE CiCT StAGESWORK 7 ~S-ond contract

C. DRY O WET DRY WET DRY WET DRY WET DRY Thid contract_ Z _ _ _ _ _ _ ___ , JAVA SEA. ~ 2 Fourth contract

Mapping 1111111IIliii IIKAAWANG

First Contract7,000 ha. and including i * l A Vi

Rehabilitation of

Citarum Embankments .... -| - .- VET 4 DRY f2jET DRY WET DRY

Second Contract -.. .. -.. 15,000 ha.

Third Contract16,500 ha. .-....

(Incl.Citarum U [

Embankment Rehab.)

Fourth Contract L | |I16,000 ha. -|

CONTRACT ACTIVITIES:

|||||||||||||| MappingPlanning and Design

ffi Tender and Award World Bank-7910(3R)

Construction

INDONESIA

JATILUHUR IRRIGATION EXTENSION PROJECT

0 & M ORGANIZATION (IRRIGATION) OF JATILUHUR AUTHORITY

Irrigation Department

Direcltor | Above this level, see Inset

Office of Director

Secretary, Admin. &Finance

- - - - - -- - - - - - - - -- - -- - - - --

Agricultural Develop- Development & Con- ment Division 0 O M ivision struction Division

Deputy-Director Deputy-Director Deputy-Director

When appropriate the I

Section will be made a Division

Agriculture West District Middle District East District Curug District

Section O&M O&M O&M O&M

Chief of Section District 0 & M Engr. District 0 & M Engr. District 0 & M Engr. District D & M Engr.

Sub -District Organization below this for each0 & M district is same as for West District

Diretor DMisreor SDirector

Pengamat- Pengamat _|Hom,e Affairs,Agriculture|Oration _M Iaintenance _01

1! "Water Master" operatinv geaes and other structures en the main and senonda.y nanals and drains D I

2! "Field Operater" in charge of the aBication of irrigation water to tertiary canais. Note- Authrity's Board of Dinectors cornprises President Director avd the three Directors,

heading rho Authority's three del.reme,t3

WorlId Bank-7851(3R)

IBRD 10524107¢ F10S' 17'5 N AUGUST 1973

INDONESIA SOU"SEA KLMNA

JATILUHUR IRRtGATION EXTENSION PROJECT KAL(MANTAN

.eneral MapA / AAl 4 : A Exis-frn main Canals SUM TRA

_____Canals

rProject areaWYEtfNo Exneing technical irrigation areo WAa A V 5 E A

-i----Swamp and fish( ponds JAT/Lt//UH? 1ffG4WGT1aN. U Under rehabilitation (CREDIT 195 -IND) i ArATENsK2IN PREcT

aV Brrages i:OItJJG 6 NN APA4-SEFDADI

-; F=o-ldintirgrrmuzds 5o Eiti P gArRailways CMLObc PKIE-APA

0 0 i 10 0 : t i : 3: 3: g, : KBztu~~~~~atlaja " tgl>;=Sec6rld retAaRFhi,l Project Ares A

~JJ rir Prei t Area : . H A L: V

=b M ;mOHA JWT Ok C,irgkung a To is 2,0 25

JAKARTA,

t JC l 4 / 2 / f seK ( < ( /CANA Sokoqsemr TAU <d .nam CIUE3R SYT

8 HA -04/ / < J ~4 X Suh7t ' /37 HA (NET]IJS nJ / ( / S/YZk ..... r/CAANAZ-M 6 i t \ nonsf *----$ *--- \ $Kedangwunsa Lnrarnr

WES X < f _ f / ARRAGEi C,-kArtk A _U . .. A.AMDARMA . .Gabuswetan

Tel.g sS ,-' \ c AREAGE * EARRAGT

5530 wn 6'30

49 )/) <|0 0t r | ( if / 9 Xunrar fKrnjo

K.w.b' 0 6r 8, I1T Mo

\~~~~~~~~~~~~~~~~~~~~Ca MI CA aIV ung I\ 2 '107' 07,1' > gj 10,'30'107aS' 1 OS-

IBRD 10525

; \ ; '< == ', - ;0 = 0 0 ; . 0 _ ; _ ;0__ ,0SJO-TRA

:; eoIwceJ A V A , i A

N S t; lV \ < \ 'N Ni'; ARE; { / A1 S A Ie OF MAP

J A V A oaa

A V A

Y f _-) : - _ = 3 - Z - -C A N = -'$A

j ~~~~~~~~~~~~~~~~~~~~~~~~~~~IN DON ES IA

N '>-- ' '-';,---- JATILUHUR IRRIGATION EXTENSION PROJECTCahargbangen ~~~~ Irrig~ation and Drainage System

0 0 A= ' ' \ T klundl~~~~~~~~~~KecOie0R e -_ ngeedengelok --- Enistoig errigatior caonmi

CW-0 ---- N.41=dr- ge -canals

+ :~ ~ ~ ~ ~~ ~~& f .~ S'eana -Eitn rie emaKmn to. bee'b toted0

1 :i , ,g 1i. I )f sO

N AcurtA xE1 f T|>S 9 | \N w X/i9 Bday a the project area

;R~~~~~~~~~~~~~~~~~~~~~IEitin'-.igSd lalic a s ' '%}Xt, gor'\ :tiotE\yr 0100 ; V/t/NAA

- ~~~~~~~~~~~~ - - = -~~~~~~~~~~~~~~~~~~~~~~~~~~~~FisO pnds and -- ap areas

__.- A aaqewAnzAzS ., ,'N!

9 e ; M/EST l i,- l ' \ ' i , d'c t _ ' n>

kl , V \ {/ ' lg ~~~~~~~~~~~~~'- 0; 0 0 Pu 0gcaf

j ; t 0 , ,-, dfif@t <' S~~~~~~~~~~~~~~~~~~K ARRtAGE 8 | CLRRL4

IBRD 10526AUGUST 1973

4 9 ts 0 j§° \ ~~~~~~~~~INDONESIAJATILUHUR IRRIGATION EXTENSION PROJECT

Roads and AgriculturaI Zones

J A V A 4) ) X -9 t E.,nting main canols ;--- Existing fish ponds New roads

S E A ( \ Existing irrigation canals Swamp and fish ponds . Roads to be rehabilitated

Agriculturul zone boundaries V Barrages by government

,. B.Eoundary of project area 2:- Rivers - Existing roads

Q,3tUjajQ Existing technical irrigation ama - Railways

GFOGRAPHITCAI NET IR/G6AB7ONA REA AREA

2,650 h. 3000 ha

1 13,300 h I 1,000 h

___________ 29,050 ho 24,000 ha

9,200 ha 8,000 ha

TOTAl 6d,200 ha- 51,000 ha

PW~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~n

SvMATRA & C/BFEETBARRAGE XCURUG BARRAGE

Teivi,beLng J A V A S if A t/4tJ

AREA OF MAP 9

0Bgo 'BasanduSearng vo ux a

J A V A Sarabojoik;ran

/ /V D / A N1 To hrA UM

OCEAN~~~~~~~~~~~~~~~~f ToIPurwaNart