Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 5429-IND

STAFF APPRAISAL REPORT

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

April 24, 1985

Agriculture 4 DivisionEast Asia and Pacific Projects Department

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

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CURRENCY EQUIVALENTS

Currency unit Rupiah CaP)US$L00 RP 1,100

FISCAL YEAR

Government of Indonesia: April 1 - March 31

WEIGHTS AND MEASURES

mm = millimeter (0.039 inches)cm = centimeter (0.3937 inches)m = meter (39.37 inches)kn = kilometer (0.62 miles)sq km = square kilometer (0.386 square miles)ha = hectare (2.47 acres)cu m = cubic meter (35.31 cubic foot)MCM = million cubic meters (811 acre-feet)BCM = billion cubic meterscms = cubic meter per secondI = liter (1.06 quarts)lIc/d = liter per capita per dayt = metric tonGWh = gigawatt-hour (million kwh)

PRINCIPAL ABBREVIATIONS AND ACRONYMS USED

BIMAS - Bimbingan Massal Swa Sembada Bahan Makanan "Mass Cuidance forSelf-Sufficiency in Foodstuffs" - a farm input credit program

DGFCA - Directorate General of Food Crops AgricultureDGWRD - Directorate General of Water Resources DevelopmentDKI-Jakarta - Daerah Khusus Ibukota - Jakarta City GovernmentDPP - Directorate of Planning and Programming in DGWRDGOI - Government of IndonesiaINMAS - Tntensifikasi Masal - "Massive Intensification" - a farm input

program.IPEDA - Iuran Pembangunan Daerah - land taxJMDP - Jakarta Metropolitan Development PlanJSDP - Jakarta Strategic Development PlanJSSP - Jakarta Sewerage and Sanitation ProjectJWSDP - Jakarta Water Supply Development ProjectM&E - Monitoring and EvaluationM&I - Municipal and IndustrialO&M - Operation and MaintenanceOM&R - Operation, Maintenance and ReplacementPDAM-DKI Jaya - Perusahaan Daerah Air Minum - Jakarta's Public Water Supply

UtilityPOJ - Perum Otorita Jatiluhur - Jatiluhur AuthorityPROSIJAT - Jatiluhur Authority's Irrigation Project UnitWTC - West Tarum CanalWUA - Water Users Association

FOR OMCIAL USE ONLY

rNDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

STAFF APPRAISAL REPORT

Table of ContentsPage No.

Loan and Project Summary

I. BACKGROUND....... ............ *............. ........ .. 1

II. THE PROJECT AREA AND PROJECT FORMULATION ...................o 4

A. The Project Area ....................................... 4B. Project 9ormulation.................................. *. 9

III. THE PROJECT... ........... ................. 10

-. Objectives .....................e.........o..e......o..... 10B. Project Description ... os............................... ...................... 11C. Details of Project .................... 0..... 11D. Project Cost and Financing............................. 16E. Procurement ............. 00*000000*00000000000 16Fe Disbursementso ooooooe.o.....*,.oo.....o.........o.................. 20C. Accounts, Audits and Reporting ......................... 20H. Environmental ........ o........... .... ... .............. 20

IV. ORGANIZATION AND ANANo..es.............................. 20

A. Afecut1ng Agency ................................... .. 20B. Current and Plannoed ures........................ 21C. Raw Water ................................. g.......... 24D. Monitoring and Evaluation.............................. 24

V. ALLOCATION AND RECOVERY OF PROJECT COSTS ................... 25

A.Bkgoud................................ 25B. Project Cost ALlocation ................................ 25C. Cost Recovery ........ 25

This report is based on the findings of an appraisal mission to Tndonesiaconsisting of Messrs. I. Naor, P. C. Sun and A. Van Vugt who visited Indonesiain September 1984, and P. Stott who participated part tim.

This doanmethas P ftstiice slhtt e Cmaybe aud byrcmtonlyt pefonmm f

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Page No.

VI. AGRICULTURAL PRODUCTION AND FARM INCOMES .................. 29

A. Agricultural Production .............................. 29B. Farm Incomes and Payment Capacity ..................... 29

VII. BENEFITS, JUSTIFICATION AND RISKS ......... ................ 32

A. Project Benefits and Beneficiaries .................... 32B. Economic Justification ................. .............. ..... . 33C. Risks ........................................................... 39

VIII. AGREEMENTS TO BE REACHED AND RECOMMENDATION ............... 40

ANNEXES

Annex 1: Table 1: Climatological DataTable 2: Farm Size and Land TenureTable 3: River FlowTable 4: Sediment TransportTable 5: Summary of Water QualityTable 6: Irrigation RequirementsTable 7: Water Demand and SupplyTable 8: Conveyance CapabilitiesTable 9: Consulting Services - Categories and Estimated SchedulesTable 10: Proposed Allocation of Loan ProceedsTable 11: Estimated Schedule of DisbursementsTable 12: Jakarta's Projected M&I Water NeedsTable :3: Costs AllocationTable 14: Estimated Raw Water ChargesTable 15: Projected Demand for Raw Water SuppLy and Incremental

BenefitsTable 16: Dosage and Value of Chemicals Used at the Pulogadung

PlantTable 17: PDAM's Income Status Before and After ProjectTable 18: Cost Recovery and O&M Requirement in WTC AreaTable 19: Irrigation Rent RecoveryTable 20: Breakdown of Summary AccountsTable 21: Project Components by YearTable 22: Project Cost Summary

Figure 1: Projected Demand and Supply of Raw Water to Jakarta

Annex 2: Table 1: Jatiluhur Authority Income and Deficit StatementsTable 2: Sources of OEM Funds in Irrigation Directorate, POJTable 3: PDAM's Income StatementTable 4: 1979 Rates of IPEDA Assessment for Rural Paddy Land by

Productivity Class and Landholding SizeTable 5: Cost Recovery IndexesTable 6: Price Structure for Agricultural Outputs

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Annex 2: (cont'd)Table 7: Price Structure for Agricultural InputsTable 8: Summary of PhysicaL Inputs and Outputs per Hectare for

CropsTable 9: TotaL Crop Production and Inputs RequirementTable 10: Farm Labor Availability, Requirement and UnempLoymentTable 11: Summary Farm BudgetsTable 12: Economic Benefits of IrrigationTable 13: Economic Benefits, Costs and Rates of ReturnTable 14: Levels and Responsible Agencies for M&E of Irrigation

Project

Annex 3: Chart 1: Organization of the JatiLuhur AuthorityChart 2: PDAM Organization

Annex 4: Summory Terms of Reference for Consulting Services

Annex 5: Selected Documents and Data Available in Project File

MAP

IBRD 18504 - WTC Project AreaIBRD 18505 - WTC Raw Water and Flushing Supply from the WTC

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INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Loan and Project Summary

Borrower: Republic of Indonesia

Amount: $43.4 million

Terms: Repayable in 20 years, including 5 years grace, at the stan-dard variable rate.

ProjectDescription: The main objectives of the proposed project, which will serve

the agriculture and urban sectors, is to increase ruralincomes and food production through larger irrigationsupplies, and to improve Jakarta's urban living conditionsthrough increased and improved raw water supply. Towardsthese objectives, the proposed project includes (a) improve-ment of the West Tarum Canal (WTC), its major structures; (b)the construction of a pipeline from the canal to thePulogadung treatment plant; (c) strengthening the operationaland maintenance capacity and financial condition of theJatiluhur Authority; (d) technical assistance forconstruction supervision design, land mapping forreclassification and reassessment of taxation, protection ofraw water and improvement of safety measures at the JatiluhurDam. Agricultural beneficiaries will include mostly smallholders, with incomes below absolute poverty, in about 67,000ha at West Tarum, in West Java, while urban beneficiarieswill be Jakarta's residents whose highly inadequate watersupply will benefit from more and better raw water. Toimprove traditionally inadequate O&M funding, the projectprovides, on a pilot basis and for the first time inIndonesia, for increased cost sharing by beneficiaries inboth sectors. Urban beneficiaries through direct watercharges will pay the entire cost of supplying raw water whileirrigation beneficiaries will pay part of recurrent coststhrough properly channeled, appropriate, land taxes. Whilethese arrangements should ensure adequate O&M funding, andhence satisfactory operation and maintenance of the improvedcanal, there is some risk in terms of delays in putting theminto place, and consequently of inadequate funding or below-standard O&M. However, Government has already indicatedreadiness, to increase land taxes, to assign priority in theuse of a portion of these taxes for O&M, and to supplementsuch funds, as required, for adequate O&M. Also Jakarta'sMunicipal Water Utility has agreed to pay its share of O&Mand capital costs.

Local Foreign Total

Project Costs: West Tarum CanaL 9.99 14.15 24.14PuLogadung PipeLine 3.90 5.51 9.41Equipment 0.34 6.48 6.82Mapping 0.24 1.36 1.60Technical Assistance 2.24 3.59 5.83Engineering and Administration 4.07 - 4.07

Total Base Cost 20.78 31.09 51.87 /a

Physical Contingencies 3.39 5.27 8.66Price Contingencies 5.25 7.03 12.28

Total Project Cost 29.42 43.39 72.81

Expected Disbursements: Bank FY 1986 1987 1988 1989 1990 1991 1992

Annual 0.4 3.9 6.9 7.8 5.7 7.9 10.8Cumulative 0.4 4.3 11.2 19.0 24.7 32.6 43.4

/a Including $4.8 million in tazes on civil works.

r. BACKGROUND

1.01 The Government of Indonesia (GOI) has requested Bank assistance forthe multipurpose West Tarum Canal rmprovement Project which will enhance irri-gation and urban raw water supply and consists of (a) improvement of the WestTarum Canal (WTC) to provide more water for irrigation of about 67,000 ha inthe West Tarum area, and for more raw water to the City of Jakarta; (b)construction of a 7.5 kmn water supply pipeline to connect the WTC andJakarta's Pulogadung water treatment plant; (c) strengthening the operacionaland maintenance capacity and financial condition of the Jatiluhur Authority(POJ), the agency responsible for operation and maintenance of project works;and (d) technical assistance for management and supervision of construccion,studies of future developmencs, land mapping for reclassification for tazationpurposes and strengthening of tax inspection offices, protection of raw waterresources, and improvement of safety measures at the Jatiluhur Dam.

1.02 The West Tarum Canal, one of Jatiluhur's main conveyance canals, wasbuilt in the 1960s to convey irrigation supplies to the West Tarum area and toaugment Jakarta's raw water suppLy. As demands for its water were only gradu-ally built up, it did not carry the full discharge it was designed for. Withwater demands nearly fully developed, the full discharge will be needed andstructural and maintenance improvements are required to enable the WTC toconvey it (para 2.05). Improvements, to be implemented under the proposedproject will facilitate meeting peak irrigation requirements of the entireservice area and Jakarta's raw water demands till the late 1990s whenadditional conveyance facilities will import water from neighboring riverbasins. The project was identified by Bank and FAO/CP missions in 1980,prepared by the Directorate Gereral of Water Resources Development (DCWRD),and POJ and their consultants between 1981 and 1984 with Bank assistance underIrrigation Project XV (Cr. 995-IND) and appraised by the Bank in September1984. The project has a high priority in COI's water supply and irrigationdevelopment plans. It should be supported by the Bank as it addresses highlyimportant sectoral issues and fits into long-term development strategies inthe agricultural and water supply sectors. The project will increase foodproduction and rural incomes, improve the use of land and water resources,provide additional, and better raw water to Jakarta, strengthen institutions,expand the dialogue with COI on cost recovery, and improve public health andoperation and maintenance (O&M).

Sector Background

1.03 Agricultural and Rural Sector. Covernment's major objectives forthe agricultural and rural sectors are to: (a) create productive employmentto raise incomes of the rural poor; (b) increase domestic food supply to keeppace with rising demand; (c) expand agricultural exports, particularly ofsmallholder tree crops; and (d) ensure productive, sustainable use ofIndonesia's land, water and other resources. Irrigation improvements and ashift to high yielding rice varieties, supported by fertilizers, almostdoubled rice production during the 1970s. Between 1970 and 1983, paddy pro-duction increased from 13 million tons to 23 million tons, 90X of it fromirrigated areas, which made Indonesia nearly self-sufficient in its major food

commodity. However. to maintain this position and offset growing demandthroughout the remainder of this decade, GOI pLans to invest an average ofabout S800 million a year. or about 8% of the development budget, upgradingand expanding irrigation systems and swamp developments.

1.04 Bank Role and Support Strategy for Irrigation. Since 1968, the Bankhas provided $1,018 miilion for irrigation projects in Indonesia. Theearliest Bank-supported projects were designed to repair major systems toquickly increase rice outDut. Later projects provided additional rehabilita-tion of existing syscems, drainage, flood protection, and tertiary networks.The most recent projeccs include measures to strengthen planning, programming,and budgeting capacity and managemenc information systems (Irrigation XV -Cr. 995 and XVI - Ln. 2113). and co build up the capacity of provincial irri-gation services in East Java Province (Irrigstion XVII - Ln. 2119), and ineight other provinces (Second Provincial irrigation Development - Ln. 2375).During GOI's Fourth Five-Year Development Plan (Repelita IV, 1984-89), theBank's involvement in the sector will emphasize institution building andaddress persistent sectorwide problems, such as operation and maintenancestandards and cost recovery. Lending will focus on:

(a) strengthening of national and provincial irrigation servi..es, andimproving their operation and maintenance performance; and

(b) a number of technically complex projects or projects which presentdifficult economic choices or in which Bank participation can mobi-lize significant cofinancing. Such projects include the West TarumCanal, the Jatigede Multipurpose Dam Project, and the Kedung OmboMultipurpose Dam Project.

1.05 The first five Bank-assisted irrigation projects have been1yomple-ted. Project Performance Audits have been issued for four projects,- and afollow-up ImpasF Evaluation Report is available for the first project(Cr. 127-IND).= ImpLementation delays and cost overruns, comnon to the fiveprojects, were caused by protracted bureaucratic procurement procedures,shortages of local funds, higher than expected inflation, design deficienciesand slow contractor performance. However, since cost increases were more thanoffset by higher rice prices, economic rates of return are expected to exceed40Z. The performance audit highlighted the need to improve operation, mainte-nance and replacement services (OM&R); provide technical and administrativesupport to water user associations; and promote efficient water use. Theseproblems are recognized in the strategy adopted for Bank assistance.

1.06 Water Supply Sector. Public urban and rural water supply systemsare relatively undeveloped in Indonesia, and serve only a small part of thepopulation. About 40Z of the urban and 18% of the rural population had direct

1/ Cr. 127-IND, PPAR Report No. 2047, May 1978. Crs. 195, 220 and 289-IND,PPAR Report No. 3269, December 1980.

2/ Report No. 4575.

access to piped warer supply in 1981. The remainder obtains drinking waterfrom vendors, from shallow wells or rivers, at considerable health risk. TheGovernment's major objectives for the water supply sector are:

(a) Physical. The provision of basic water supply, sewerage and sarita-tion facilities, in accordance with technology appropriate to theLocal situation, cost-effectively, and with emphasis on the needs oflow-income groups;

(b) Institucional. The development of new, and the xcrengthening ofexisting. central and local institutions - including water supplyand sewerage public utilities - to improve their ability inplanning, implementing and delivering basic services; and

(c) FinanciaL. The creation of financially viable public utilities,which can provide services at affordable tariff levels and with atariff structure which allows recovery of operation, maintenance,and an appropriate portion of capital costs.

1.07 In 1981/82 the Government invested about Rp 65 billion (about $104million) in water supply and sanitation projects, amounting to about 1% of thedevelopment budget. During the last ten years, multilateral finance agenciesand bilateral aid donors have provided Indonesia with about $300 millionequivalent in capital and technicaL assistance reLated to this sector. Duringthis period, through a systematic approach based on limited levels of serviceand simple, standardized technology together with bulk procurement and decen-tralized implementation arrangements, COI has evoLved a substantial, low-costinvestment program, which focussed on lower income groups and served a widerange of communities. Government has also paid attention to strengtheningwater supply authorities in order to improve operational efficiency andachieve adequate cost recovery and better implementation performance. Now,%.nder the impetus of the International Drinking Water and Sanitation Decade(1980-90), cOI aims to scep up its earlier efforts and to significantlyimprove the level of access to safe water. Under Repelita IV, service targetsfor 1990 have been set ac 701 of the urban population and 55% of the ruralpopulation, at an average basic needs level (60 liters/capita/day (llc/d)minimum).

1.08 Bank Role and Support Strategy for Water Supply. The Bank's overallobjectives and strategies for the sector are consistrt with those of Govern-ment. As of end 1984, the Bank had made four loans - for the sector. Inaddition, substantial complementary investments in water supply and sanitationhave been supported by five Bank loans for the urban sector. Through theSecond Urban Development Project (Ln. 1336-IND) the Bank has had a significantinvolvement in the formulation of a comprehensive development strategy for the

3/ First Water Supply Project (Ln. 1049-IND, 1975), Second Water SupplyProject (Ln. 1709-IND, 1979), the Jakarta Sewerage and Sanitation Project(Ln. 2236-IND, 1983), and the First East Java Water Supply Project(Ln. 2275-IND, 1983).

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Jakarta Metropolitan Area through the Jakarta Metropolitan Development Plan(JMDP). completed in 1981. Detailed studies of municipal and industrial waterdemands and improvement and expansion of Jakarta's wacer supply systems arecurrently in progress as part of the Jakarta Sewerage and Sanitation Project(JSSP). wich parallel Japanese Government assistance. A follow-up project isalso being prepared to rehabilitace Jakarta's existing water supply andupgrade its institutional framework.

II. THE PROJECT AREA AND PROJECT FORMULATION

A. The Project Area

2.01 The project area consists of two parts: the agricultural servicearea of the West Tarum Canal (the West Tarum area) And the metropolitan areaof Jakarta. The first part will benefit from increased irrigation supplieswhile the second part will benefit from increased raw water supplies.

The West Tarum Area

2.02 West Tarum. one of Java's most fertile, rice producing areas, formsthe western section of the 240,002 ha Jatiluhur irrigation project area. Itcovers a gross area of 87,000 ha,- or a net area of 67,000 ha, most of it inthe Bekasi District. It is bounded on the wez.t by Jakarta, on the north bythe coast, on the east by the Citarum River and on the south by the West TarumCanal. About 2 million people currentLy live in the West Tarum area, mostlyengaged in agriculture. There are two large towns, Bekasi and Cikarang, and anumber of smaller towns. Good internal road and rail connections facilitateyear-round mobility within the area as well as access to main population andcommercial centers. Due to its proximity to Jakarta's markets, the area has acomparative advantage in growing a variety of crops in addition to rice.

2.03 The climate of West Java, in which both West Tarum and Jakarta arelocated, is tropical. with an average temperature of 260C, relative humidityof about 80% and daily evaporation rates between 3-6 an. The average annualrainfall is 1,800 mm with about 75% falling during the November-April rainyseason, when monthly averages range between 130 and 400 mm. The remainder isscattered throughout the May-October dry season, averaZing between 40-125 mper month (Annex 1, Table 1). West Tarum's soils, like those of other partsof Java's north coa.t, have been formed by alluvial and colluvial depositsfrom a chain of volcanic mountains in the center of the island and are highlysuitable for rice production. The northern part of the irrigable area, closeto sea level, is flat and partly swampy, while towards the south, the groundrises several hundred meters. The general drainage is from south to north,varying in slope from about 0.02% at the coast, to 0.1% in the south. Fourmajor rivers, the Citarum, Cibeet. Cikarang and Bekasi, traverse the West

4/ About 1,000 ha have been rezoned as urban area to allow for Jakarta'sexpansion.

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Tarum area, and in :he past their peak uischarges ilooded the northern, low-lying, lands. They were contained in the mid-1970s by extensive flood controlworks provided with Bank assistance (Irrigation Project V. Cr. 514-IND).

2.04 Most of the area has been under wet-season rice and secondary cropsfor generations, and about 45,000 ha are currently under dry-season irrigatedrice and about 3.000 ha, uncer secondary crops (Table 6.1). Based on 1983Agricultural Extension Service daca (Annex 1, Table 2). more than nalf thefarmers in the area hold less than 0.5 ha, nearly 80% hold less than I hawhile about 3% hold more than 3 ha. About 70X of the land is owner-operated,and about 20% is farmed by sharecroppers.

2.05 The West Tarum Canal The WTC traversing the area from east to westwas designed to convey from up to 85 cubic meters per second (cms) at itspumplift headworks at Curug, on the Citarum River to about 11 cms at itsterminal end, for irrigation and for municipal, industrial (M&l) supplies andflushing of rivers in Jakarta. Shortly after construction, earth slidesseverely damaged the canal and in mid-1970 it was repaired with Bank-Croupassistance under Irrigation Project II (Cr. 195-IND). 1982 a hydrometricsurvey or the canal and its structures uas carried out - which determinedthat the actual capacity et headwork pumps, the conveyance capacity of thecanal itself and of some of its major structures (a river crossing siphon anda tunneL and a siphon at the terminal) was significantly less than asoriginally designed (Annex 1, Table 8). This was partly because of designdeficiencies and partly because of inadequate maintenance. Despite thisdeficienc,. WTC's capacity was till now, adequate to supply West Tarum's,partially developed, irrigation demands. However, the relatively smalLcapacity of the terminal reach (6 cms instead of 11 cms) precluded releasesfor flushing of Jakarta's badly polluted Ciliwung river, which also serves asa main, open sewer. WTC's current capacity is not adequate to meet peak irri-gation demands of the entire West Tarum service area (as system rehabilitationunder Irrigation Projects V and XII, Lns. 514 and 1645-IND respectively isnearing completion), and raw water demands of Jakarta's expanding water supplysystems (Annex 1, Figure 1). An increase in the capacity of the WTC and itsancillary structures, proposed by this project, is the least cost, viable,solution to meet these demands (par&. 2.15).

Jakarta's Metropolitan Area

2.06 Jakarta, the notion's capital and its largest city, with an area ofabout 640 sq km, is located in northwestern Java. The city had an unprece-dented growth rate of 6% p.a. in the 1950s, and though its growth slowed toabout 4% p.a. in the 1970s. its population of about 7 miLlion in 1983 isexpected to increase to over 12 million people by the turn of the century.±'This rapid growth was not accompanied by a commensurate expansion of water

5V West Tarum Canal Enlargement Project, NEDECO, January 1984.

6/ Jabotabek Metropolitan Development Plan, 1981.

supply and other services. By 1970, municipal water suppLy systems coveredonly about 16Z of the city, and as a resuLt of a crash prcgram and the firstphase of a long range development, completed in 1975 and 1982 respectively,the service area nearly tripled in size (to about 44% of Jakarra's area) butonly about haLf the population in tne service area (about 2.1 miLlion)actualLy received piped water supplies. Even though the city has been engagedin an effort co increase piped wacer sup,lies most of Jakarta's populationcontinues to obtain water from other sources (para. 1.06). The Master Planfor Jakarta's water supply (JWSDP, _ICA. December 1984), envisages a gradualexpansion of the service area co about 70% of the city by 2005, supplying, atthat time, piped water to about 9 million people of the city's estimatedpopulation of 12 million.

2.07 About 90% of Jakarta's piped water is currently supplied from twotreatment plants, receiving raw water from rivers traversing the city. Theremainder comes from ground water (4X), from springs (4%), about 40 km southof Jakarta, and from a number of small 'mini' treatment plants located onlocal, small, rivers. The largest and oldest of Jakarta's treatment plants,Pejompongan (5.6 cms), is Located in the heart of the city, on the Banjir(Flood Control) Canal, whicb receives water from the Ciliwung River (Map18504). The second, never plant, Pulogadung (whose capacity of I cms iscurrently being expanded to 4 cms), is located in the city's eastern part, ontwo small creeks, the Sunter and the Cipinang. During low flows, limited,supplementary quantities of water are released into the Ciliwung and into theSunter from the West Tarum Canal, some 19 km upstream of Pejompongan and 7 kmupstream of Pulogadung. A major deficiency of Jakarta's water supply is anantiquated distribution system which, in 1980, delivered only 47% of the waterproduced by treatment plants. Most of the remainder was lost throughleakage. The poor condition of the distribution system also induces an inflowof contaminated ground water.

Water Resources and Requirements

2.08 Surface Water. The main water resource for all of West Java,including Jakarta, is the Citarum River. At the Jatiluhur Dam, near the townof Karawang, the Citarum drains a catchment area of 4,550 sq km with anaverage annual rainfall of about 2,400 mm, and an average annual runoff ofabout 6 billion cubic meters (BCM). In addition to a 2 BCM (active storage)reservoir at the Jatiluhur Dam, two additional dams, Cirata and Saguling, areunder construction upstream. Saguling, with a reservoir of about 610 MCM(active storage), is scheduled for completion in l9SQ 2nd Cirata, with areservoir of about 800 MCM, is scheduled for completion in 1988. TheJatiluhur reservoir is operated as a multi-purpose reservoir, serving irriga-tion, water supply and power. Saguling and Cirata will be operated primarilyfor hydropower generation, but will contribute to increasing Citarum's watersupply potential. In addition, smaller flows are contributed to the WestTarum area and to Jakarta by the Cibeet, Cikarang and Bekasi Rivers (Map IBRD18504), and exclusively to Jakarta, by the Ciliwung River and a number ofcreeks including the Sunter (Map IBRD 18505, and Annex 1, Table 3).

2.09 Groundwater. Groundwater is found in Java's coastal plain inquaternary, deltaic alluvial sediments that reach a thickness of over 300 m

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and comprise clays, sands, silts and graveLs. There are three main aquifersin the coastal plain, though not always distinctly separated: a 50 m deepphreatic aquifer with its water table close to ground surface, underlain byclay layers separating two semi-confined aquifers, each about 40 m deep. Thephreatic aquifer is recharged by rainfall on the coastal plain and by riverstraversing it; the semi-confined aquifers are recharged mainLy at outcrops,some 15 km from the coast. and by infiLtration from the ohreatic aquifer. Itis estimated that in 1980 izarly 50% of greater jakarta's water supply, about200 HCH per year, was deriverd from groundwater through tens of thousands ofsmall wells. Of these, L.3C0 have been inventoried by the Directorate ofEnvironmental Geology. Present extraction exceeds the aquifer's safe yield,and piezometric levels have dropped to 20 m below sea level in the cencer ofpumped zones (North Jakarta). As well water becomes too saline for drinking,alternative water will be required. The proposed project, which will increaseraw water supplies to Jakarta, and an expansion of distribution systems (para1.08) address this issue.

2.10 Sediment. As a result of progressively denuded catchments, allrivers in the area carry ever increasing amounts of sediment, particularlyduring high stages. Most of the Citarum's sediments settle in the Jatiluhurreservoir, yet large amounts carried by the relatively small Cikao River, atributary of the Citarum downstream of the Jatiluhur Dam, enter the WTC at itsheadworks, while sediment carried by the three other intercepted rivers, theCibeet, Cikarang and Bekasi, enter at interception points. An analysis ofsediment data (Annex 1, Table 4) shows that, with properly designed andproperly operated and maintained sediment traps, most of the sediment thatwould have settled in canals could be trapped and disposed of before enteringthe canals where its removal is both difficult and costly. The data indicatethe impact of efficient sediment traps to be provided under this project, onreducing siltation in the canal system.

2.11 Bacteriological Water Quality. Bacteriological quality of drinkingwater in Indonesia, and in particular in Jakarta, is an issue of majorconcern. As a result of the city's high population density and lack ofcontrol on the use of resources, the quality of its surface and ground waterhas deteriorated progressively and the city's entire population is exposed atone time or another, to bacteriologically unsafe water. Water in shallowwells is contaminated from surface wastes, while rivers running through thecity, from which both individuals and treatment plants derive raw water, areincreasingly poLluted by human and industrial wastes. Highly fluctuatinglevels of pollution make it practically impossible to effectively treat suchraw watef,and as a result contaminated water has passed into piped watersystems.!/ Preliminary results of water quality monitoring, initiated in

7/ Treatment plants were originally designed to treat relatively goodquality raw water in the rivers (or creeks) on which they are located,through simple, conventional treatment processes, but uncontrolleddevelopment and poor sanitation have led to a progressive deteriorationof water quality.

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November 1983 (under Irrigation Project XII, Ln 1645-IND), indicate that rawwater in the Bekasi-Jakarta reach of the WTC is of much better and treatablequaLity chan river (or creek) water reaching treatment plans (Annex 1. Table5). This finding has been incorporated in project formulation and design(para. 2.17).

2.12 Irrigation Requirements. The required capacity of the WTC has beenbased on peak irrigation requirements of the entire West Tarum area of some67,000 ha and on Jakarta's raw water requirements. Irrigation recuirementshave been calculated on the basis of recorded. representative. evapotranspira-tion rates, average percolation rates of 1 mm/day, and a simulated rainfall ofa 1:5 dry year, with an effectiveness of 45% during the growing season and70% during land preparation. An overall efficiency of 65% has been assumed,which, though higher chan the current efficiency of about 45%, is expected tobe achieved in the fucure through the structural and operational improvementof the WTC. Annex 1, Table 6 shows seasonal and peak irrigacion requirementsat turnouts from the WTC into secondary systems based on a common practice ofdividing the service area into 5 (occasionally 6) about equal size, rotationalblocks (golongans).

2.13 Jakarta's Water Requirements. Metropolitan Jakarta's municipal andindustrial (M&I) water requirements, given in Annex 1, Table 13, have beenbased on a projected population growth to 12 million by 2005, of whom about 9million would be served; on supplies ranging from 30 l/c/d for low incomegroups to 250 lIc/d for high income groups; and on an increase in distributionefficiency from about 54% at present to 75% in 2005, through rehabilitation ofdistribution systems. With little likelihood of increasing groundwatersupplies (para. 2.09), most of this water will have to come from surface waterresources. In addition to M&I water needs, an estimated minimum flow of about9 cms in Central Jakarta's rivers is required for flushing purposes, about10 cms in East Jakarta's, and about 4 s are required to meet ripariandemands downstream of diversion weirs._ To meet all these requirements,additional water will be imported from eastern, and to a limited extentwestern, basins, and treatment and distribution facilities will be expanded(Annex 1, Figure 1 and Map IBRD, 18505). High priority activities inJakarta's water supply development program are improving water quality andreducing losses (para. 2.19).

Water Management

2.14 The Jatiluhur reservoir is the largest and most important multi-purpose storage reservoir in West Java for irrigation, water supply and power.Operated since inception on forecast two-weekly demands, releases for the

8/ During the dry season, low river flows have to be supplemented. The WTCwill be able, after improvement, to supply up to 5 cms into the CiliwungRiver running through Central Jakarta, supplementing a low river flow of4 cms, while flushing releases for East Jakarta can take place only afteradditional water resources become available.

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three main systems (West, East and North Tarum) have supplemented interceptedrun-of-the-river flows for irrigation in the Jatiluhur service area, includingWest Tarum, providing up co 6 cms to Jakarta, small quantities to a number ofsmall towns and industries, and generating about 55 SWh of power per month.Water management and reservoir operation studies, summarized in Annex L,Table 7, show that after 1988 (the completion of the Cirata Dam), theJatiluhur reservoir will be able to supply annually up to 4.8 BCM (supple-menting about 1.9 BCM from local rivers), to meet Jatiluhur's irrigation andJakarta's projected M&I demand, and provide about 300 MCM for flushing. Inreleasing this water, about 1,000 GWh of power (660 CWh firm) woyxd begenerated annually, with minor shortages in irrigacion supplies.- Additionalreservoir operation studies (under Irrigation Project X, Ln. 1578-IND) willoptimize the operation of reservoirs on the Citarum River to meet demandsbeyond the year 2000.

B. Project Formulation

2.15 The project has been formuLated to meet peak irrigation requirementsof the entire West Tarum area, Jakarta's raw water requirements till the mid-1990s, and improve water quality by works that are: (a) technically feasible;(b) least-cost solutions; Cc) ready as needed without requiring prolongedservice interruptions; (d) designed to deliver a reliable wacer supply ofacceptable quality; and (e) an integral part of long-range developments. Theimprovement of the West Tarum Canal meets all these objectives. An additionalconveyance canal (Canal #1, or the Tarum Jaya Canal) will be necessary in themid-1990s to supplement the WTC's capacity in supplying needed raw water.-which will utilize the remaining potential of the Citarum's water resourcesand augment Jakarta's raw water supply by an additional 35 cms. Works of theproposed project make maximum use of existing facilities, modifying andimproving them with minimal shut-down periods. Canal capacities will beoptimally increased mainly through surcharged water levels requiringrelatively minor modifications of canal cross-sections, and through structuralimprovements, including mechanically operated trashracks, additional siphonbarrels and larger desilting basins at river crossings.

2.16 Considerable attention was given in project formulation to upgradePOJ's institutional capacity for improved operation and maintenance (O&W) ofits systems and to ensuring adequate O&M funds through-cost recovery fromirrigation and water supply beneficiaries (paras. 5.05, 5.06). Technicalassistance has been designed to assist and train O&M staff in upgrading O&Mstandards and procedures. This activity will be aided by equipment, to befurnished under the project.

9/ Average deficiency of 5%, 1/20 year deficiency of 10%.

10/ Cibeet Irrigation, Flood ControL and Water Supply, NEDECO, 1984.

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2.17 In view of a progressive deterioration of Jakarta's raw watersuppLy, a search for better quality water was initiated in November 1983 bymonitoring water quality along the entire raw water suppLy route. Interimfindings indicate that water in the WTC is of much better quality than chat inthe rivers feeding Jakarta's treatment plants. A study of alternative pLans(e.g., intensified treatment, poilurion control) showed that procected convey-ance (through pipelines) from points of suitable water quaLity in the WTC totreatment plants was the most feasible and cost-effective method for raw waterimprovement. This solution has therefore been adopted in planning the connec-tion between the WTC and the relatively new Pulogadung treatment plant, wheresavings in treatment costs alone justify such an investment (para. 7.04). Apipeline to Jakarta's older treatment plant at Pejompongan, whose distributionsystems are in poor condition, may be justified if phased in parallel withdistribution system improvements. and these are being prepared with Bankassistance under JSSP. In order to facilitate the appropriate timing of theseactivities studies of this pipeline have been initiated (under IrrigationProject XII, Ln. 1645-IND) and its design will be provided under this project.

2.18 Parallel Activities. In parallel with physical development, theproject has been formulated to strengthen executing institutions in implemen-tation management, and water quality protection (Annex IV). The project hasalso been formulated to provide for aerial photography and remapping ofJatiluhur's irrigated lands for reclassification and reassessment of landtaxes. Additionally, to verify farmers' payment capacity, a study of currentaggregate tax burdens on the farmer and land tax colLection methods has beeninitiated under Irrigation Project X (Ln. 1578-IND).

2.19 Following the findings of the study carried out under JSSP(para. 1.08), a project is being prepared with Bank assistance to rehabilitateJakarta's existing water supply systems, construct a pipeline to thePejompongan treatment plant, and improve the management and financialcapability of Jakartats public water supply utility.

III. THE PROJECT

A. Objectives

3.01 The main objectives of the project are to (a) increase rural incomesand food production, and improve the use of human and land resources throughincreased irrigation supplies; (b) improve living conditions in Jakartathrough increased and improved raw water supplies; and (c) improve institu-tional capacity for O&M through technical inputs and through increasing costsharing by beneficiaries.

- l; -

B. Project Description

3.02 The project will provide the following:

(a) civil works to enlarge and improve the West Tarum Canal (WTC) andits major structures, and to conscruct an, about, 7.5 km longpipeLine between the canal and the Pulogadung water treatment plant;

(b) equipment for improved operacion and maintenance of the WTC, of theJatiluhur Dam, of IPEDA's inspection office;

(c) aerial photography and mapping of Jatiluhur's irrigated area forland reclassification for taxation; and

(d) technical assistance for: construction management and supervision;operation and maintenance; studies and designs; IPEDA's datamanagement; and water quality protection.

C. Details of Project Works

3.03 The project comprises the following components (see Table 3.1):

(a) Civil Works:

(i) earthworks, including dredging, deepening and widening the WTC,raising canal banks, regrading service roads; construction of anew inlet bay and trashrack structure at headworks; enlargementof existing sediment traps at main river crossings; construc-tion of two additional siphon barrels (at the Cibeet Rivercrossing); and rehabilitation of minor structures (gates ofturnouts and culverts);

(ii) manufacturing and laying of an (about) 7.5 km long, 2 m diame-ter pipeline between the vicinity of Bridge 49 (BTb#49) on theBekasi-Jakarta reach of the WTC, and the Pulogadung treatmentplant;

(b) Oam Equipment:

(i) mechanical equipment, including dredgers, hydraulic excavators,tractirs, dump trucks, ancillary equipment and spares;

(ii) microcomputers for each of POJ's three operation subcenters,for the operation center, for IPEDA's inspection office,hydrologic gauges, monitoring as well as communicationequipment, accessories and supporting software for irrigationsystem operation;

(iii) replacement of obsolete instruments for safety monitoring atthe Jatiluhur Dam, including settlement gauges, piezometers,

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water level recorders, seismic accelerometers, levels andtheodolites; and

(iv) adequate spares and two assembled pumps (for standby purposes)for the Curug pumping plant;

(c) Aerial Photography and Mapping

(i) Aerial photography (1:10,000) in B/W and infrared of a grossarea of about 300,000 ha.;

(ii) preparation of photo mosaics and rectified photomaps to a scaleof 1:5,000, based on pre-identified, existing ground controlsand photomaps of the area;

(iii) identification of village boundaries, irrigated and nonirrigated areas and preparation of 1:5,000 village maps;

tiv) identification and demarcation of individual land holdings onvillage maps; and

iv) preparation of 1:2,500 scale line maps of each village showingall land holdings, sizes, and preparation of alphabeticalregisters and coordinate indexes of each holding, name of ownerand/or operator.

(d) Technical and Institutional Assistance:

'*) technical assistance to DCWRD in:

- supervision and management of project construction;

- preparation of plans and detail design of an additionalconveyance canal (Canal #1, the Tarum Jaya Canal) toJakarta and of the pipeline to Pejompongan;

- preparation of plans to protect the water quality of theWTC;

(ii) technical assistance to POJ in:

- training in planning, budgeting, scheduling and imple-menting adequate maintenance of the WTC and of the Curugpumping plant;

- training in computerized analysis and processing of waterdemand and supply at POJ's operation control center andsubcenters;

- training in recording and analyzing safety related data atthe Jatiluhur dam.

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(iii) technical assistance to the Directorate of IPEDA's inspectionoffice authority, in tax assessment data management(collection, processing, recording).

Table 3.1: PROJECT COMPONENTS AND QUANTITIES

Component Approximate Implementingquantity agency

Canal Works DGWRDVarious earthworks (cut and fill) 3 MCMConcrete (mass and reinf.) 13 TCMMiscellaneous metal work 166 T

Manufacturing and Laying of Pipelines DGWRD2 m diameter pipeline 7.5 km

06M EquipmentComputers 6 DCWRD and IPEDACommunication Equipment Misc. DGWRDHydrologic Gauges Misc.Dredgers 3Excavators 6Dump trucks 6Tractors 3Pumps and spares Misc.Dam safety equipment Misc.(pipes, settlement gauges, etc.)

MappingLand mapping for reclassification IPEDA

Technical and Institutional AssistanceConstruction management and supervision - DCWRDOperation and maintenance

(WTC, Jatiluhur Dam) - POJDetail Design of Canal 11 (Tarum Jaya)and Pipeline to Pejompongan - DCWRD

Water quality protection - DGIRDTaz Data Management - IPEDA

Legend: MCK - Million cubic metersTCM - Thousand cubic meters

T = Ton

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3.04 Under the civil works component. cross-sections of the WTC will beincreased by about 30% bevond original design dimensions to compensate forrecorded. larger-than-foreseen fr-ction losses (Mannin n-.026, instead ofnn.020 in original design). Excepc ac che nead reach this will beachieved by increasing the depth of flow by 25-30 cm and by increasing thewidth of the canal by about 5-i0% by restructuring the Left berm. Originaldesign capacities, recently (1982) surveyed and revised capacities are givenin Annex L, Table 8.

3.05 FoLlowing structural improvements will be carried out under theproject:

(a) Inlet Bay and Headworks. A new inlet bay co the Curug pumpingplant will be constructed by dredging an old river channel,immediacely upstream of the existing inlec. tt will beconnected to the forebay of che pumping plant through a newtrashrack structure, and equipped wich mechanicaL rakes andtrash removal facilities. Turbine discharge penstocks andoutlet gates will be rehabilitated and subsurface drainage ofthe forebay of the plant will be improved;

(b) Sediment traps at the Cibeet, Cikarang and Bekasi diversionswill be considerably widened and deepened;

(c) Two additional siphon barrels and a new, mechanically rakedtrashrack will be constructed at the Cibeet River crossing;

(d) A new streamlined inlet, equipped with mechanically rakedtrashracks will be built at the Cawang siphon (near WTC'sterminal) and the 1 km long outlet tunnel into the CiliwungRiver will be lined; and

(e) Minor structures. turnout gates from WTC will be heightenedand defective gates replaced; about 20 cuLverts will beextended; drain inlets into the WTC between Bekasi and Jakartawill be closed and a parallel drain and culverts will beprovided.

3.06 The proposed connection between the WTC and the Pulogadung treatmentplant will be a gravity pipeline, 2.0 m in diameter, starting near km 63 + 630(bridge #49), at a metered inlet, and inflow will be controlled from thetreatment plant. The inlet structure will allow a future connection of thepipeline to Canal #1 (Tarum Jaya). The pipeline will foLlow the Buaran Creek,crossing an Industrial Estate at Pulogadung, and will terminate at theexisting inlet to the treatment plant. Prestressed concrete appears to be the

Il/ For the first 1 km, downstream of the Curug pumping plant, the fullsupply level of the canal wiLL remain as before in order not to affectpump discharges. Excess capacity will be provided by widening thecanal.

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cheapest material of construction of the pipline but a final selection of thepipe's material will be made after bidding (schedule for Kay 1986).

3.07 Definite engineering plans and cost estimates of all civil workswere prepared under Irrigation Project XII (Ln. 1645-IND) on the basis offinal design of the WTC. Additional work on detail, design and contractdocuments is well in hand and scheduLed for completion by July 1985. Weeklywater quality measurements in the WTC, which have been carried out sinceNovember 1983, are being continued. Detail design of the pipeline toPulogadung has started and is scheduled to be completed in October 1985 forbid invitation in December 1985. Land acquisition for limited rights-of-wayrequirement along the canal is in progress and negotiations with land ownersare in progress. Due to limited requirements, no major delays in constructionare expected. Similar activities for the pipeline right-of-way will commenceupon completion of alignment surveys. This activity has been prograumd inconstruction schedules.

Consulting Services

3.08 Local and foreign consulting services will be provided to assist theJatiluhur Authority in construction management and supervision, in upgradingO&M, and in designing additional conveyance facilities. Consulting serviceswill also be provided to continue and expand the Authority's training programin O& of tertiary systems to include more water users, and in preparing plansfor the protection of the quality of WTC's water conveyed to Jakarta. Con-sulting services will also be provided to assist in the preparation ofsuitable maps for reclassifying irrigated rice lands in the Jatiluhur projectarea. Estimated man-months of various assignments are suimarized in Table 3.2below and detailed in Annez 1, Table 9. The cost of the assistance package isestimated as $5.83 million for 247 man-months of expatriates, 620 man-monthsof local professionals and 1,044 man-months of local technicians. Assuranceshave been obtained at negotiations that consultants, whose qualifications,experience, terms and conditions of employment are acceptable to the Bank,will be engaged not later than the dates indicated in Table 4.1. The contractfor consulting services for construction supervision is being currentlynegotiated with invited consultants, scheduled for coooencement of work inSeptember 1985 (one month ahead of commencement of construction).

Implementation Methods and Schedule

3.09 The project will be implemented by parallel activities in variouscanal reaches over a 6-year period starting in the fall of 1985, with prioritygiven to enlargement of the Bekasi-Jakarta reach, to facilitate an earlyincrease in municipal and industrial (M&I) water supply (Table 4.1).Implementation plans specify dredging of the canal for the removal ofaccumulated material below the water surface, or, where widening of the canalis called for, mechanical excavation for the removal of material above thewater surface. All this will be done with minimal service interruptions.Structural work at the canal terminal, which requires service interruption fordewatering of the canal at that point, will be implemented during sufficientlylarge flows in the Ciliwung so as not to affect operation of the Pejomponganwater treatment plant.

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Table 3.2: CONSULTING SERVICES

Local Local BaseExpatriate professionals technicians costs

Exec. agency --------- (man-months) ----------- (US$ mln.)

IPEDAStrengthening InspectionOffice 6 30 - 0.15

DGWRDConstruction management 84 290 430 2.28Detail design, Canal # 1and pipeline to Pejompongan 72 138 290 1.57

Water quality protection 7 54 108 0.35

POJ&M (WTC, Jatiluhur Dam) 78 108 216 1.48

Total 241 620 1,044 5.83

D. Project Cost and Financing

3.10 The total project cost is estimated at $72.8 million (includingtaxes on civil works of $4.8 million), of which $43.4 million (60%) will be inforeign exchange. Project costs are expressed in March 1985 prices and anexchange rate of Rp 1,100 - $1.00 is used in this report. Quantities of civilworks are based on final design and unit costs are based on recent contractsfor similar works. Costs of consultant services are based on early 1985rates. A 15Z allowance has been included for physical contingencies for allitems, and price contingencies have been estimated, based on the followinginflation rates: for foreign costs: 5X in 1985, 7.5% in 1986, and 8% in 1987-1990; and for local costs: 8% for 1985-90. Expected price increases totalabout 24Z of base costs. Detailed project costs are given in Annex 1, Tables20, 21, 22 and are summarized in Table 3.3.

3.11 The proposed Bank loan of $43.4 million, will finance the foreignexchange cost of the project. This represents about 64Z of total projectcosts, exclusive of taxes. COI will finance the remaining $29.4 million fromits development budget (Table 3.4).

E. Procurement

3.12 Construction of civil works (earthworks and major structural works)on the West tarum Canal ($27.04 million including contingencies) and the con-struction of the Pulogadung pipeline ($11.7 million) will be procured through

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Table 3.3: COST SUM

(V '000) (UBS 'IM) I TotlI Fordig uw

Local Fooimn Total Lcal Foreign ToUl Euhmw Costs

1. I , COSTS

A. CIVL LOuS

1. CUCNLS

EARTIOS 3,vI6,519.2 1,7 1.S 1253I330.0 3,515.0 7,924.9 l1439.9 6 22RIHTS OF may 24234500.0 - 2234,500.0 2#076.3 - 2o-6.I - 4IEICaELO an 292t15.0 49692350. 7710400.O 256.5 451.1 707.6 64 1STICTUA.L HORS 4,0739454.3 5u076t436.6 919.10.? 3,703.1 44614.9 33131 n5 16MTRIAS l SUIPPLIES 4349676 .5 1,236066.6 1,670,743.0 395.2 1,123.7 1,518.9 74 3

Suib-Toal CUAS 10941315.0 15,S2141.9 26,467,463.9 9946.6 14,114.7 24061.3 5 462. RAAS

ERTINIS 34,9141 19,2519 54166.0 31.7 17.5 4.2 36 0UWACUIB 9,370.0 23,030.0 32,900.0 9.0 20.9 29.9 70 0

Sub-Total IAUITS 44734.1 42,31. 37,066.0 40.7 3.4 79.2 a 03. HTR SMPLY

CIL OM ATEt SUPPLY 1i42,25.0 2,5,175.0 3,706,300.0 1,320.1 2.09.3 3369A.4 A 6RIGNT OF brA HTERt SUPPLY 129%190.0 - 1,299,370.0 1,11.7 - 1,131.7 - 2MTlER.SW No SUPPLIES 1,540,000.0 331tO000.0 5,350P000.0 MM00.0 343a.6 433*.6 71 9

Sub-Total TER SMLY 4v291,95.0 6064t1750 10,356,170.0 3901.3 5M512. 9414.7 59 13

Sib-Total CIUIL gm3S 15,273,094.1 219=324605. 36,910o699 13,3.2 19,666.0 33,555.2 59 653. EUUIPENT

OM EGUIPIINT#IIOATION 375,1963 7,123723.83 7,503,9250 341.1 6,43.7 6v121. 95 13

Sub-Total LEIINET 375,16.3 712B372S38 7,50395.0 341.1 6t430.7 6,321.8 95 13C. TECNIC=L ASSISTAICE

1. E2FATRIATE COISULTMITS 439,047.3 29771.270.7 3260,3134 444.6 2,519.3 2W913.9 85 62. LOCAL PRIFESSIINW.S 1,043901.0 709,267.3 17M31633 967.2 644. 1412.0 40 33. LOCAL TEOIDKCIAS 911970.9 4661030.6 1937GI051.5 329.1 423.7 19252.3 34 2

Sub-Totl TEMNICAL. ASISTMNCE 2464v919.6 3,9466138.6 6411,93.2 2,240.1 35317.8 5323.7 62 11B. IPEDA NWPIIS 264,000.0 1,496,000.0 1,760,000.0 240.0 1,340.0 1,400.0 05 3E. ENlINEIU SE AB HNISTRATnO 4,474,343.1 - 4,474,343.1 4,063.0 - 4,068.0 - O

Total DASELOJE COSTS 22PO57t053.1 346203,P9.1 57,041,006.2 20s779.1 31,094.5 51,173.6 60 100Phisical Contini.ci.s 3M732B453.2 5,790231.2 9v=p696.3 39393.1 5,2a3.9 8657.0 61 17Price Continl nciun 571020.9 7,734,500.6 13,5405,21.6 5,246.4 7,031.4 12,277.7 57 24

Total PROJECT COSTS 32,3609532.2 47,7283,9.9 30,039W224.1 29,418.7 43,38W97 72303.4 60 140=-C_ - -_ m -

APril 159 195 14:39

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Table 3.4: FINMACINC

Source Local Foreign Total 2

Bank 0 43.4 43.4 64

cor 29.4 - 29.4 36

Total 29.4 43.4 72.8 100

international competitive bidding (ICB), in accordance with Bank guidelines.In view of the urgency of increasing Jakarta's raw water suppLy, civil worksfor the construction of the Bekasi-Jakarta reach (Contract # 1, of anestimated value of $4 million) will be procured under Limited internationalbidding (LIS) procedures, using documents accepted by the Bank. Bidding forthis contract is currently in progress and signing of the contract will be acondition for loan effectiveness. Major maintenance equipment ($5 million)will be procured through ICB and miscellaneous smeller equipment and partstotalling $2.4 million, in packages not excoding $100,000 and not suitablefor ICB, will be procured through LCS procedures, acceptable to the Bank.Other equipment ($2.1 million) is not suitable for ICD or LCB and will be pro-cured in small packages not exceeding $50,000 each, through prudent shoppingand on the basim of three quotations acceptable to the Bank.

3.13 Review of Procur em nt. The Bank will review prior to avard allcivil vorks contracts, more tha $1.5 million each, all goods contracts,(about five), over $200,000 equivalent, and all contracts for consultingservices. Other contracts will be reviewed following award, on a samplebasis. Table 3.5 su mmarizes procurement arrangements.

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Table 3.5: PROCUMEMENTT$UmEllion)

TotalICB LIB LCB Other N.A. Cost

Civil WorksWest Tarum Canal 27.04 4.03 - 2.54 /a 33.61PuLogadung Pipeline 11.70 - - 1.72 7a 13.42

Subtotal 38.74 4.03 - 4.26 /a 47.03(21.5) (2.2) - (23.7)

Equipment0.10 0.10Operation--01000Maintenance 5.00 0.10 l.98 7.08Dam Safety - 2.30 2.30

Subtotal 5.00 2.40 2.08 9.48(4.77 (12-.7 (-2717 (9.2)

IPEDA Mapping - 2.12 2.122.1) (2.1

Technical AssistanceIPEDA 0.20DGURD 5.99POJ 2.16

Subtotal 8.35 8.35(6. 4) (8.4)

Engineering and Admin. 5.82 5.82

Grand Total 43.74 4.03 2.40 12.55 10.08 72.80(26.2) (2 .2) 0:7.7 (12 .6) (O)r M4.4)

/I Rights-of-way.

note: (1) Costs include physical and price contingencies.(2) Figures in parantheses are proposed loan amounts.N.A. - Not applicable.

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F. Disbursements

3.14 Loan funds will be disbursed against the following categories, netof taxes:

Category Disbursement rate(Z)

(a) Civil works 60(b) rmported equipment 100(c) Imported equipment and materials procured locally 65(d) Locaily manufactured goods 95(e) Mapping 100(f) Consultant's services 100

3.15 Disbursement will be made against contracts. The proposed alloca-tion of loan proceeds is given in Annex 1. Table 11, and disbursements areprojected over seven years, from September 1985 through December 1991 as shownin Annex 1, Table 11. Estimated disbursements are expected to be similar tothose given in the disbursement profiles for Indonesia and regional irrigationprojects, for works of similar nature. Project Completion is expected inDecember 1990 and Loan Closing would be by December 31, 1991.

G. Accounts, Audits and Reporting

3.16 During negotiations, Assurances have been obtainedfrom GOI that allagencies participating in this project will maintain separate records andaccounts related to project expenditures. Acounts will be audited annually byindependent auditors acceptable to the Bank. All contracts, orders andreceipts will be kept at least two years after loan closing; and auditedreports will be forwarded to the Bank within nine months following the end ofeach fiscal year.

H. Environmental Impact

3.17 The project will make an important contribution in improvingJakarta's water quality and in reducing endemic water-borne diseases byincreasing and improvinig raw water supplies to the city. The project willalso contribute to preserving and protecting the West Tarum Canal and theproposed Tarum Jaya Canal from pollution by initiating studies and preparingfor protective measures. It will likewise contribute to improved sanitaryconditions by providing water for the flushing of the city's rivers.

IV. ORGANIZATION AND MANAGEMENT

A. Executing Agencies

4.01 Construction and Design. Construction of physical works under theproject and the design of future developments will be implemented by "PROYEKSERBANGUNA JATILUHUR," a project unit for Jatiluhur's multipurpose develop-

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ment, in DGWRD's Department of Irrigation I (DWI I). This unit, previouslyknown as PROSIJAT, and reporting to Jatiluhur's Directorate, has beenresponsible for the rehab.Litation of Jatiluhur's irrigation system (underIrrigation Projecr II, Cr. 195-IND), for construction of flood control works(under Irrigation Project V, Cr. 514-fND) and is nearing compLetion of itscurrent assignment for tertiary construction (under Irrigation Project XII,Loan 1645-IND). The unit has an amply staffed technical department butrequires technical assistance in construction supervision arid management, andin designing new developments. Water quality protection plans will be pre-pared under the supervision of DGWRD's Directorate of Planning and Programming(DPP).

4.02 Operation and Maintenance. The Jatiluhur Authority (POJ) isresponsible for the operation and maintenance of all infrastructure (includingthe Pulogadung pipeline) upon completion of construction. The Authority wasestablished in 1970 to operate and maintain the muitipurpose Jaciluhurproject, including the dam, power Dlanc, irrigation and raw wacer supplysystems. The Authority employs more than 2,000 peoDle, (exclusive of dailyworkers) in O&M. Maintenance activities, handicapped by chronically shortbudgets, and carried out usually during slack periods of agricultural seasons,have to be significantly upgraded to orovide continuous and reliable water asrequired by Jakarta's water supply, and operation procedures require similarlyupgrading to reach optimal utilization of available water resources.

4.03 Land Taxation. The Directorate of Land Taxes (IPEDA) within theDirectorate General of Taxation in the Ministty of Finance, will beresponsible for mapping, demarcation of landholdi.ags, reclassification oflands for taxation purposes and reassessment of land taxes. Assurances havebeen obtained at negotiations that GOI will cause the implementacion of saidmapping, reclassification and reassessment in accordance with theImplementation Schedule (Table 4.1).

B. Current and Planned Procedures

4.04 The West Tarum Canal is currently operated on the basis of calcula-ted irrigation demands, and agreed raw water supplies to Jakarta, within theconstraints of WTC's carrying capacity and available supplies. DeLiveries arereviewed and agreed every two weeks by POJ and PDAM, the Jakarta's watersupply utility (paras. 4.08-4.09), and maintained throughout the operationinterval, even if changes in hydrologic conditions occur in the interim. Thisapplies to all of Jatiluhur's irrigation systems (north, east and west) whichare operated through operational subcenters, and an operational center atCurug. West Tarum's subcenter, located at Bekasi, is supported by threesections, each operating a reach of che WTC between two local rivers. Most ofthe flow in these rivers is diverted into the WTC to meet irrigation and rawwater demands, and when these flows are inadequate, supplemental water isreleased from the Jatiluhur reservoir. This procedure, which till nowsupplied up to about 67X of WTC's service area, appears to have worked well,but wit.. the forthcoming completion of all irrigation systems in the commandarea and increasing supplies to Jak&rta, the operation of the system has to bemore responsive to hydrological changes to achieve an optimal use of waterreleases from storage. Appropriate operation would have to be supported by

Table 4.1: IMPLEMENTATION SCHEDULE

Executing Bids/proposals Contract Work/supplyagency Activity Invited Opened Evaluated award Starts Completed

DGWRD Civil WorksBekasi-Jakarta 03/06/85 05/15/85 07/15/85 08/15/85 10/15/85 10/15/88Curug-Bekasi 08/15/85 10/15/85 12/15/85 04/01/86 06/15/86 12/31/89Pulogadung pipe 12/15/85 03/15/86 06/15/86 08/01/86 10/01/86 12/31/88

Eguipment ProcurementOperation equipment 11/01/85 01/01/86 03/01/86 05/01/86 09/01/86 02/01/87Maintenance equipment 09/01/86 11/01/86 02/01/87 04/01/87 10/01/87 03/30/90Dam safety 03/01/86 05/01/86 07/01/86 10/01/86 12/01/86 06/01/87

Technical AssistanceImplementation management 04/30/85 06/30/85 07/31/85 08/01/85 09/15/85 12/31189Design 10/01/87 01/15/88 02/15/88 03/01/88 04/01/88 12/31/89

DPP Water quality protection 08/15/85 09/15/85 10/15/85 11/01/85 12/01/85 12/31/87

POJ O&M 10/01/86 01/15/87 02/15/87 03/01/87 04/01/87 12/31/89Dam safety 12/01/85 01/01/86 12/31/88

IPEDA Land mapping 11/15/85 01/15/86 02/15/86 04/01/86 05/01/86 12/31/88Assistance to Inspect. Office 05/01/86 12/31/8RReclassification andreassessment 05/01/87 03/31/90

Strengthening inspection 05/01/86 12/31/88

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frequently updated and processed rainfaiL data from catchments of localrivers, flow forecasts to facilitate adjustments in diversions at Curue andoptimized releases from Jatilunur (above firm power reieases). This wouldrequire improved communicacions between gauging stations and subcenters,between subcencers, and improving and upgrading of data collection andprocessing. The project addresses this need by providing operational hardware(microcomputers and communicacion equipment), software, technical assistanceand training of operation staff.

4.05 Maintenance. As a result of POJ's recurrent shortage of funds(para. 5.01) and cumbersome, manual maintenance procedures (which requiredewatering of the system which interrupts water supply), the WTC has not beenmaintained in optimal operating condition. Between annual clean-outoperations. silt, originating in intercepted rivers nas been accumulating inconveyance systems, reducing capacity (para. 2.10). Xanual maintenanceefforts could not be intensified without interrupting Jakarta's raw watersupply, and inadequate funds precluded the acquisition of appropriatemechanical equipment. The project addresses this issue by providing forinfrastructural improvements and larger and more effective sediment trapswhich will reduce the inflow of sediment into the canal (Annex 1, Table 4),and for suitable, small dredgers and ancillary equipment to facilitatemaintenance without interrupting supplies.

4.06 The project also provides technical assistance in training POJ'sstaff in effective O&M of the WTC and of headworks pumps. Staff at theJatiluhur Dam will be trained in adequate monitoring, processing and inter-preting of dam safety data (including piezometric levels, embankment settle-ment data, deflection and settlement data of the intake tower and power plant)and in adequately maintaining safety equipment. Assurances have been obtainedat negotiations that GOI shall cause the inspection of the Jatiluhur Dam,reservoir banks and associated structures at 3 year intervals with soundengineering practice and to remedy without delay any deficiencies which mayendanger the safety of the dam and its structures. GOI will propose appro-priate arrangements for the Bank's review not later than December 31, 1985.

4.07 O&H Funding. POJ derives operating and maintenance funds fromgenerated revenues, from budgetary allocations from Central Government andfrom Local Government contributions. In 1982 about 50% of POJ's revenues camefrom the sale of power to the State Power Authority, Perusahaan ListrickNegara, (PLN); 32% came directly from Central Government; 11% came fromCentral Government funds chAnnelled through Local Government; 3% came from thesale of raw water and 4Z from miscellaneous sources (e.g. tourism and variousservices). Though these revenues are higher than they were in previous years,they still fall short of current O&M requirements (para 5.01). POJ has, in thepast, also benefited from additional funds made available for capitalinvestments particularly in rehabilitation of irrigation systems, which werenot always clearly distinguishable from routine maintenance. In the future,these resources may no longer be available. As raw water supply increases,O&M requirements become more stringent and more costly and POJ's futurefinancial posture will be precarious,unless additional revenues can begenerated (para. 5.01)

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C. Raw water Utilization

4.08 PDAM-DKI Jaya. PDAM. established in 1968. i1s a semi-auconomousutility of DKI Jakarta responsibLe for cveration, mainEenance and expansion ofJakarta's water supply. Raw water Drovided by the WTC is treated by PDAM'splants and is distributed through its sVstem. ?DAM is headed by a PresidentDirector who is assisced bv three airectors responsibie ior engineering.business, and administration (Fig. 2, Annex 3). The utility has about 2.000employees. Despite a low water discribution efficiencv. PDAM has beenfinancially proficable in the pasc years with an average annual net surplus ofabout Rp 2 billion during 1981-83 (Annex 2. Table 3).

4.09 PDAM has a long-cerm expansion plan for its service area and in viewof a shortage in local water resources, is importing increasing quantities ofwater from severai river basins (paras. 2.06, 2.13). New treatment plants(Pulogadung II, Buaran. and Cakung), are expected to come on line (Annex 1,Fig. 1) and discribution systems are in a process of expansion. The Bank isassisting PDAM (under JSSP. Ln. 2236-IND) to prepare a project wich willstrengthen its implementation and management capacity. During negotiations,assurances have been obtained that GOI will cause Cipta iCarya (the DirectorateGeneral of Housing, Building, Planning and Urban Development) and PDAM (a) tocomplete the expansion of the Pulogadung Treatment Plant by September 1988 andits distribution system prior to September 1989. Also, COI confirmed, atnegotiations that by September 1985 GOt would employ consultants to assistwith planning the improvement and rehabilitation of Jakarta's water supplydistribution system which is scheduled to commence in September 1986.

D. Monitoring and Evaluation (M&E)

4.10 Monitoring and evaluation of projects during and after implementa-tion are important tools in managing existing projects ard in planning forfuture development. These activities may be generally classified into fiveinterrelated levels to be implemented by various agencies Es shown in Annex 2,Table 14.

4.11 In the Jatiluhur project area, monitoring of physical and financialprogress has been routinely carried out by PROSIJAT; however, monitoring andevaluation of water management and crop production requires considerableimprovement. Farm incomes in irrigated areas and the socioeconomic impact ofirrigation has been evaluated in the past by university groups on an ad hocbasis, and a systematic design for and effective implementation of M&E includingall five levels still needs to be established. Assurances have been obtainedat negotiations that GOI will cause DGWRD's DOI I to submit a comprehensiveM&E scheme for project works construction and will cause POJ under theguidance of DPP to submit to the Bank for comment by July 1986, a comprehen-sive M&E scheme of O&M, crop production, farm income, changes in land tenure,distribution of project benefits, and commence its implementation by July1987.

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V. ALLOCATION AND RECOVERY OF PROJECT COSTS

A. Background

5.01 POJ's weak financial position is a major cause for inadequatemaintenance of irrigation systems under its jurisdiction (para. 4.05). As ofJune 30, 1982, POJ had accumulated a net loss of about Rp 32 billion (Annex 2,Table 1). This loss occurred in POJ's irrigacion and water supply operations,primarily due to an absence of revenues from irrigation, and inadequately Lowrevenues from the sale of raw water to jakarta. Increasing revenues from rawwater charges (para. 5.04). and channeling increased land taxes to O&M (para.5.06), will improve POJ's finances. As, however, incremental revenues will begenerated gradually, additional funds will have to be made available by GOIfor O&M (paras. 5.08 and 5.09).

B. Project Cost Allocation

5.02 Annex 1, Table 13 illustrates cost sharing between beneficiaries.It shows the allocation of investment and recurrent (OH&R) costs to the twobenefitting user groups: irrigation and M&I water supply. Improvement costsof joint facilities of WTC have been allocated in direct proportion to thecapacity each component requires. This resulted in an allocation of 70Z ofimprovement costs to irrigation, and 30% to water supply. The cost of WTC'ssingle-use components, e.g., the Bekasi-Jakarta reach and the PulogadungPipeline, serving only raw water supply, has been allocated entirely to watersupply. Seventy percent of the investment and replacement cost in O&Mequipment, which will primarily benefit raw water supply, has been charged tothis beneficiary. On this basis, of the total estimated investment of about$67 million (including contingencies and engineering but excluding technicalassistance), $39 million (58%) has been allocated to M&I raw water supply, andabout $28 million (42%) to irrigation. Annual O&M costs are prorated on thesame basis, but adjusted at given intervals to actual expenditures.

C. Cost Recovery

Raw Water SuppLy

5.03 POJ's raw water supplies to Jakarta, Bekasi and a number of indus-trial consumers are paid for currently in accordance with negotiated rates.Payments by PDAM for raw water delivered to Jakarta were fixed in 1976 by theGovernor of Jakarta at Rp 19.8 million p.a., with an annual increase of 15% tocompensate for inflation. In 1981, the payment was about Rp 40 million($53,000) or about Rp 0.4 per cu m (Annex 2, Table 2). This rate was too lowto meet O&M costs for raw water supply, let alone recover investment costs. Anew rate of Rp 10/cu m of raw water has recently been established, but has notyet been implemented.

5.04 Estimated raw water charges and payment capacity. With an aim ofrecovering allocated OM&R costs and capital investment, raw water chargesshould be determined on the basis of actual costs as illustrated in Annex 1,

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Table 13. PDAM should repay actual construction costs and pay recurrent O&Mcosts (Annex 1, Table 14). Data given in Annex 1, Table 17 show that PDAMwill be in a position to pay these costs, amounting to less than 10% of itsestimated operational costs, through larger revenues from increased watersupply, and through, conservatively estimated, higher water tariffs. The costof the Pulogadung pipeline will not burden PDAM as it will be offset bypotential savings in the cost of water treatment (Table 7.2).

5.05 POJ/PDAM Agreement. Prior to loan negotiations POJ, as supplier ofraw water, and PDAM as user of raw water, entered into the followingagreement, accepted by the Bank, which wiLl become effective by, July 1988, orthree months after POJ commences supplying 11.6 cms to PDAM's treatmentplants, whichever earlier. The agreement specifies that:

(a) PDAM will pay POJ annually 100X of the allocated raw water supplycosts (including operation, maintenance and replacement) and repaycapital investments allocated to the DKI Jakarta raw water supply,according to principles given in para. 5.02;

(b) Allocated capital costs shall be paid yearly throughout a 30-yearperiod at a 12% per annum interest rate; annual OM&R costs shall bereviewed every three years by both parties and adjusted on the basisof actual costs;

(c) POJ will ensure the delivery to PDAM of an uninterrupted supply ofwater of an agreed quantity, peak discharge and quality;

(d) POJ shall keep separate accounts for (i} recovery of capital costs,(ii) replacement of O&M equipment, and (iii) O&M of WTC and of thePulogadung pipeline. These accounts will be annually audited andaudited reports shall be sent to PDAM and the Bank for coments.

5.06 During negotiations, GOI agreed that any proposed amendment to theagreement be furnished to the Bank for comments.

Irrigation

5.07 Government revenues in Indonesia's agricultural and rural sector aremainly generated through, by current standards relatively low, land taxes(IPEDA) (para. 5.08). There are no direct irrigation water charges inIndonesia, except contributions by farmers of irrigated lands to village watermasters and water user associations, for the upkeep of tertiary irrigationsystems (para. 5.07). The lack of adequate revenues in the irrigation sub-sector, unjustified in view of significant benefits attributable to irriga-tion, imposes an unduly heavy burden on GOI in financing new developments andin operating and maintaining irrigation systems. To ease this burden,revenues in the irrigation subsector should be increased, commensurate withbenefits, and for expediency should be channelled to maintenance of irrigationsystems. In view of a long tradition of farmers' perceived inalienable rightto free surface water, and various political and social constraints,Government is not ready, at this time, to impose water charges, and the mostpracticabLe way of increasing revenues appears to be an increase of land taxes

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by applying existing laws and regulations 121 linking IPEDA with, inter alia,rice production and rice prices. Towards channeling locally generated fundsfor O&M of main and secondary irrigation systems, a dialogue has beeninitiated with the West Java's local government, and an agreement has beenreached in principLe (para. 5.09). IPEDA's funding of other rural develop-ments would not, and indeed should not, be curtailed, and farmers paymentcapacities would be considered in assessing higher tax rates (para. 5.10).This is the first time that this approach is being explored in Indonesia, andits application is expected to be gradual. The dialogue initiated under thisproject will be pursued in coming irrigation projects, and broadened to otherprovinces.

5.08 Farmers' Contribution. Farmers are expected to operate and maintaintertiary irrigation and drainage systems, and in the project area, areexpected to contribute 25 kg of paddy per ha per crop, and about five days oflabor per year to their local water user association (WUA). In most irrigatedareas, including the project area, these associations have not been active andhave not been able to improve the operation and maintenance of tertiarysystems. Consequently farmers have been reluctant to contribute theirshare. With a view to improving chis situation, the Jatiluhur Authority hasbeen training irrigation officials in ensuring reliable irrigation supplies tofarmers and in proper O&M of tertiary systems (para. 6.04).

5.09 Land Taxes (IPEDA). IPEDA (luran Pembangunan Daerah), literally acontribution for rural development, is commonly collected from farmers byprovincial governments through village heads and allocated at the Kabupaten(District) level. The tax is used for a variety of rural developments but isusually not used for the upkeep of main and secondary irrigation systems,which have traditionally been financed by Central Government. In West Java,the provincial government, which in the past retained 10% of IPEDA collec-tions, has recently rechannelled 8% to district governments and about 2%, orabout Rp 200/ha (1% of the current requirement) for O&M of Jatiluhur's mainand secondary irrigation systems. Under current regulations, IPEDA isassessed in accordance with the size of landholdings, the productivity 13 assof the land, value of production, and may be reassessed periodically.However in practice, most lands are under assessed. Current IPEDA rates,shown in Annex 2, Table 4, were established in 1979 and have not beenmaterially increased since. Under the impact of previous and currentinvestments in irrigation, rice production will increase to about 10 t/ha(Table 6.1) and this will raise IPEDA for an average 0.8 ha holding from acurrent assessment of Rp 13,300/ha (Table 5.1) to about Rp 29,000/ha(according to Annex 2, Table 4, using the 1979 price of Rp 95/kg) or Rp50,000/ha (using the 1985 paddy price of Rp 165/kg, Annex 1, Table 18).Clearly such an increase in IPEDA can only be implemented gradually, and inthe interim GOI will have to provide required funds for adequate O&M throughbudgetary allocation (para. 5.09).

12/ KEP-850/PJ.66/1979.

13/ KEP-850/PJ.66/1979.

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Table 5.1: IRRIGATED LAND CLASSES AND IPEDA ASSESSMENTIN BEKASI DISTRICT la

1980/81-1983/84 1984/85IPEDA assessment IPEDA assessment

Area Total Per ha Area Total Per haLand class (ha) (Z) -- (Rp 'OOO) -- (Z --- (Rp '000) ---

1-3 - - - - _ _ _ _4 - - - - 689 2 14,606 21.25 - - - - 2,125 5 39,737 18.76 2,683 7 43,733 16.3 6,171 16 100,587 16.37 6,408 18 90,993 14.2 10,437 26 148,205 14.28 11.940 34 144,474 12.1 9,421 24 113,994 12.19 14,274 41 142,274 10.0 10,466 27 104,660 10.0

10 - - - - - - - -

Total (Avg.) ;5,305 100 421,474 (11.9)/b 39,309 100 521,789 (13.3)/c

rncrease (Z) 100 - 100 100 111 - 123 112

/a Source: IPEDA office, Bekasi district, West Java.7b Corresponding to Class 8 land and paddy production of 3.8 t/ha/yr.Tc Corresponding to Class 7 land and paddy production of 4.1 t/ha/yr.

5.10 During project appraisal, GOI has agreed in principle to update landclassification and IPEDA assessment in Jatiluhur's irrigated area and toearmark a portion of IPEDA revenues for fRincing O&M of main and secondaryirrigation systems in the Jatiluhur area. Assurances were obtained atnegotiations that:

(a) GOI will cause POJ to update maps of the Jatiluhur service area forreclassification of IPEDA by December 31, 1988;

(b) GOI will cause the Directorate of IPEDA to reclassify irrigatedlands and reassess IPEDA rates in the Jatiluhur service area (about300,000 ha) in accordance with agreed terms, and specifications byMarch 1990;

14/ See project file.

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(c) cOt will cause the Wesc Java Provincial Government to allocateincremental IPEDA collected in the Jatiluhur service area, to thefinancing of O&M of main and secondary irrigation systems in sucharea in accordance with a schedule, acceptable to the Bank, to befurnished to the Bank by December 1988.

(d) cOr will, at all times. make available adequate funds for O&M ofJatiluhur's irrigacion systems, and those required co supply toJakarta reliable raw water of acceptable quality, as agreed betweenPOJ and PDAM, supplementing funds which may become available fromother sources.

5.11 The above-mentioned activicies will be facilitated by two technicalassistance schemes: (a) Land remapping for reclassification and IPEDA re-as-sessment (assisted under this project) and (b) studies on farmers' tax burdenand improving IPEDA collection efficiency (assisted under Irrigation X,Loan 1578-IND).

Cost Recovery Indexes

5.12 On the basis of projected raw water charges shown in Annex 1,Table 14, the cost recovery index for the water supply component is about 106%at a 10% interest rate (the local opportunity cost of capital). The costrecovery index of the project's irrigation component is about 11.5Z at asimilar interest rate which is in line with other irrigation projects inIndonesia. Detailed calculations of these indexes are shown in Annex 2,Table 5. The relatively low cost recovery index for irrigation is due to therelatively small amount of incremental taxes expected from irrigationbeneficiaries as a result of this project.

VI. ACRICULTURAL PRODUCTION AND FARM rNCOMES

A. Agricultural Production

6.01 The improved West Tarum Canal will provide additional water to therehabilitated irrigation systems in the project area, which will facilitate anexpansion of irrigated areas in the dry season, and a concomitant increase inproduction of rice, soybeans and maize. Changes in cropping patterns, yields,and production with the project are summarized in Table 6.1, with detailsgiven in Annex 2, Tr'.le 8.

6.02 Cropping Patterns, Yields and Production. In the project area,paddy is, and will remain, the dominant crop during the wet (November - April)and dry (May - October) seasons. Secondary crops, such as food crops andvegetables, will continue to be grown as second or third crops after the mainpaddy crop. In farm analyses, major crops of maize and soybeans represent allsecondary crops. The main contribution of the project will be an expansion ofthe cropped area during the dry season. This area, currently comprising about

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Table 6.1: CROP AREAS, YIELD AND PRODUCTION

Without WithPresent project /a project Increase(1984) (1990) (1990)

Crop Areas (ha)Wet season paddy 64,000/b 67,000 67,000 0Dry season paddy 45.100 50.000 67,000 17,000Maize /c 2,000 2.000 7,000 5,000Soybeans /c 1,000 3,000 11,000 8,000Total cropped area 112,100 122,000 152,000 30,000Total land area 67,000 67,000 67,000 0Cropping intensity (Z) 167 182 226 44

Yields (t/ha)Wet season paddy 3.9/d 5.0 5.0 0.0Dry season paddy 3.7 4.8 4.8 0.0Maize 1.2 2.0 2.2 0.2Soybeans 0.8 1.1 1.3 0.2

Production ('000 t)Paddy 416.5 575.0 656.6 81.6maize /c 2.4 4.0 15.4 11.4Soybeans /c 0.8 3.3 14.3 11.0

/a Based on the impact of Irrigation Projects V and XII.7b About 3,000 ha of swamp land is currently under development.{c Maize and soybean are major non-rice crops grown in the dry season and

are representative of a large variety of secondary crops and vegetables./d Including about 10,000 ha of rainfed rice.

48,000 ha can expand to about 55,000 ha as distribution systems are completed.Further expansion to 67,000 ha (Table 6.1) will take place as the capacity ofthe WTC is increased. Paddy yields in the project area have been steadilyincreasing and with the full impact of Irrigation Projects V and XII areexpected to increase to about 5 t/ha during the wet season and to about4.8 t/ha in the dry season. The project is not expected to achieve a furtherincrease in paddy yield, but yields of major crops of maize and soybeans areexpected to increase by 0.2 t/ha. The project's (1990) incremental productionof about 82,000 tons of paddy, and 22,000 tons of maize and soybeans isprimarily the result of increased cropping intensity. Most of this productionwill be absorbed by the Jakarta market and will substitute for imports, aslong-run Indonesia's demands will exceed national production.

6.03 Supporting Services and Post-harvest Facilities. Farmers in theproject area are experienced food crop growers. Most of the project area has

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been covered under BIMASVINKAS a national guided credit and production inten-sification program for wet and dry season rice crops, and agriculturalsupporting services provided to farmers are generally adequate. There are 16rural cooperatives (BUUD/KUD) and 114 branches (kiosk) which supply farminputs, and about 660 mills/hullers, which are adequate for present andexpected future production.

6.04 Water Users Associations. Water users associations (WUA) haverecently been established for aLl tertiary systems in the project area. How-ever, most of them are inactive and need to be developed (para. 5.07). Duringnegotiations, DCWRD clarified :hat training of water users would be providedthrough a national program and C0I wouLd provide specific details by October1985. In addition, the burden on farmers of paying various formal andinformal taxes in the area will be studied (para. 5.10).

B. Farm Incomes and Payment Capacity

6.05 In the farm income analysis, budgets have been developed for farmsizes of 0.3 ha, 0.8 ha, and 1.5 ha representing smaLl, average, and largefarms in the project area. The farm budgets of sharecroppers are based ontraditional sharecropping arrangement, whereby landowners pay for taxes andabout half of the prcduction costs, receiving in return half the production.It has been assumed that farm fmilies consist of 5 persons, providing about50 man-days per month, supplemented by hired labor in peak seasons, and areemployed off the farm during slack seasons. Financial prices of all farminputs and outputs have been used in farm budgets, which include all incurredproduction costs except farm family labor. Estimated farm incomes for thesetypicaL farms are summarized in Table 6.2 and detailed in Annex 2, Table 11.

6.06 As shown in Table 6.2, incomes of all farms will rise as a result ofthe project. A significant income increase (50-852) for all farm groups willresult from massive improvements under Irrigation Projects V and XII, and asmaLler increase (12-18X) as a result of the proposed project. After sub-tracting an equal minimum living allowance from net incomes, average and Largefarm holders will have a considerable surplus for payment of incrementaltaxes. Smellholders' surplus will remain negative, albeit considerably lessso than before and their payment capacity for additional taxes is limited.The size of Landholding is reflected in IPIDAs. current rates, and small-holders are assessed a lower rate than holders of larger farms, however, thedifference is too small to adequately reflect respective payment capacities.The subject of an equitable distribution of all farmers' tazes based onfarmer's payment capacity would be pursued in our continuous dialogue withCOI.

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Table 6.2: FARLM INCOMES AND SURPLUS(Tp '000 at 1985 prices)

SmaLl farm Average farm Large farm(0. 3 ha) (0 8 ha)5

PresentNet income before taxes /a 346.8 678.2 1,122.8Existing taxes /b 16.1 42.8 80.3Net income after taxes 330.7 635.4 1,042.5Minimum living allowances /c 595.0 595.0 595.0Surplus /d -264.3 40.4 447.5

Future without ProjectNet income before taxes /a 515.8 1142.4 2,023.0Existing taxes /b 16.1 42.8 80.3Net income after taxes 499.7 1099.6 1,942.7Minimum living allowances /c 595.0 595.0 595.0Surplus /d -95.3 504.6 1,347.7

Future with ProjectNet income before taxes /a 591.8 1346.5 2,339.1Existing taxes /b 16.1 42.8 80.3Net income after taxes 575.7 1303.7 2,258.8Minimum living allowances /c 595.0 595.0 595.0Surplus /d -19.3 708.7 1,663.8

/a Met of all production costs ezcluding costs of family labor.7{ Including Village Taxes, IPEDA and WUA fees at 1985 levels.7c Assumed to be equivaLent to poverty levels of Rp 119,000 in rural Java

per capita per year at 1985 prices, applied to a family of 5 people.Id A measure of payment capacity for additional expenditures and taxes.

VII. BENEFITS, JUSTIFICATION, AND RISKS

A. Project Benefits and Beneficiaries

7.01 The proposed project will increase food crop production, improvewater supply to Jakarta, reduce foreign exchange expenditures for rice andother food grain imports, and enhance employment and income opportunities inthe agricultural sector. Major benefits and beneficiaries of the project aresumnarized in Table 7.1. At full development, an incremental quantity ofabout 82,000 tons of paddy and about 22,000 tons of soybean and maize will beproduced annually which will save CO1 about $22 million each year in foreignexchange by reducing imports. An equivalent of 15,000 full-time farm jobs willbe created through crop intensification every year. Civil works of theproject will generate some 4 million man-days of construction labor during the5-year implementation period. Jakarta will receive a progressively increasing

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amount of raw water with improved quality which will generate benefits asshown in Table 7.2. About 140,000 rural families and 700.000 urban familieswill benefit trom the project directly and indirectly. Against this,investment costs per family are about $120 per farm family and about $29 perurban household.

7.02 The proposed project is the least-cost solution to achieve thesebenefits and the continuation of water resource developments in which theJatiluhur Authority progressively supplies an increasing portion uf Jakarta'sraw water. The project will upgrade POJ's O&M capabilitv and address costsharing of investments and recurrent costs by beneficiaries. The project willprovide for farmers training in O&M of tertiaries and in increasing irrigationefficiencies. It will also provide for che protection ot water quality.These considerations. though not quantifiable, are important benefits of, andjustifications for the project.

B. Economic Justification

Major Assumptions Used in Economic Analysis

7.03 Irrigation Benefits. Only the direct and quantifiable benefits ofirrigation attributable to this project are considered in the economicanalysis. These are derived from incremental farm production (rice, maize andsoybeans) valued at economic prices (March 1985 constant dollars) net ofincremental production costs. A detailed analysis of farm production benefitsii shown in Annex 2, Table 11. About 80% of irrigation benefits areattributable to paddy production from an incrementally irrigated area of about17,000 ha in the dry season and the remainder are attributable to secondarycrops including soybeans and maize. These production increases are directlyreLated to WTC'J improvement, and are distinct from product on increases as aresult of other irrigation developments (Irrigation Projects V and XII).

7.04 Benefits of Municipal Water Suppl. Benefits of the municipal watersupply component can be classified as: a) increased raw water quantity madepossible through the enlargement of the WTC; and (b) improv. raw waterquality by a protected conv! H nce through a pipeline connecting WTC to thePuLogadung treatment plant.- The project is part of a lei t cost systemexpansion plan to meet projected water requirements in Jakarta. Without theproject, the most Likely alternative to improving water quality is to continu-ously increase chemicals in the treatment process to cope with increasinglypolluted row water. This will increase treatment costs and decrease plantefficiency. The economic benefits of the proposed pipeline to Pulogadung fromsavings in chemicals and plant efficiency, is about Rp 2.4 billion in 1990 andincreases progressively (Table 7.2). These savings aLone would generate aneconomic rate of return (ERR) of about 19X for the proposed pipeline, andabout 8Z for the water supply component as a whole.

15/ Until another pipeline is built for the Pejompongan treatment plant,water from WTC will be delivered to this plant through the Ciliwung Riverwith only a marginal impact upon raw water quality at that plant.

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Table 7.1: SUMKARY OF MAJOR PROJECT BENEFITS AND BENEFICIARIES(after 1990)

Items Quantities

BenefitsIncreased food crop productionRice (milled rice) 81,600 ton/yrSoybeans (dry beans) 11,000 ton/yrMaize 11,400 ton/yr

Foreign exchange savings /aRice $16.9 millioniyrSoybeans $3.1 million/yrMaize- $1.5 million/yr

Total $21.5 milLion/yr

Increased job opportunitiesDuring construction (1986-90) 4.0 million man-dayAfter completion (1990 onwards) 4,692,000 man-days/yr,

equivalent to 15,640 jobs

Improved water supply to JakartaQuantity increase 63 MCK (in 1988) to 463 MCK

(after 1996)Total benefits $0.4 N (in 1988) and

increasing progressively

BeneficiariesIrrigation beneficiaries

Owner farmers 78,227 familiesSharecroppers 33,526 families b/Landless laborers 17,077 families b/Others 11,170 families b/

Total 140,000 families

Water supply beneficiariesMunicipal and industrial water users 700,000 families (after 1995)

/a Foreign exchange costs of incremental fertilizers and chemicals for cropproduction have been taken into consideration.

/b Most below poverty line.

- 35 -

7.05 Benefits also arise from increased water quantity. Alternativelocal surface and ground water resources are limited, increasingly contam-inated, treatment is costly and often ineffective, and large quantities ofwater transfer from neighboring river basins cannot be readily developed tomeet near-future requirements. The allocated development cost (excludingpipeline costs) of Rp 11.0/cu m (Table 7.2) is the price paid by PDAM for rawwater and is passed on to consumers. Current retail tariff averages Rp 250/cu m.Therefore Rp 11/cu m, 4% of the currea1t retail tarrif, may be considered as aminimum estimate of benefits. There is substantial consumer surplus at thistariff and there are also considerable public health benefits which have notbeen quantified.

7.06 Labor Pricing. The project is located in the vicinity of Jakarta,and there is considerable population pressure in the project area. This isreflected in the large proportion of landless laborers (about 30Z) who arehighly underemployed. The opportunity cost of unskilled labor is low at anestimated Rp 700lday.-& The shadow wage rate nas therefore been assessed atabout 70Z of average farm wages of about Rp 1,000/day, and at about 50% of thecommon construction labor wage which is estimated at about Rp 1,400/dayexcluding costs of transportation, housing, and other facilities.

7.07 Agricultural Prices. All farm inputs and outputs in the economicanalyses as well as in farm budgets are valued in conscant March 1985prices. Economic prices for rice, maize, soybean, and fertilizers are basedon January 1985 world market price forecasts for 1986, 1990 and 1995 by theBank's Commodities and Export Projections Division, adjusted for transporta-tion, processing, and handling costs to farm gates, as shown in Annex 2,Tables 6 and 7. For reference, financial prices for all commodities fromactual farm gate prices are also listed in these tables. In the projectanalysis, projected prices for 1986, 1990 and 1995 represent prices during1984-1989, 1990-1994, and 1995 and onwards, respectively.

7.08 Foreign Exchange. The official exchange rate of US$1.00 = Rp 1,100is considered to reflect the value to the economy of the foreign exchange usedin the project, and hence a standard conversion factor of 1.0 has beenadopted.

7.09 Economic Life. The project's economic life is assumed to be30 years under adequate O&M, based on the expected life of major projectworks.

7.10 Economic Costs. Total project costs have been adjusted to economiccosts by eliminating discrepancies between financial prices and real oppor-tunity costs. The following are the major adjustments (see Table 7.3):

(a) exclusion of expected price escalation and taxes;

16/ Average daily income from various marginal activities, based on anongoing Bank study.

- 36 -

Table 7.2: ECONOMIC BENEFITS OF RAW WATER SUPPLY(Rp miLLion or USS'000 at Constant 1984 Prices)

Benefits of water quantity Benefits of water quality improvementincrease through through pipeline construction /bWTC enlargement Savings in

Incremental Incremental Savings in treated /dquantity (MCM) benefits /a chemicals /c water Subtotal Total

(1) (2) (3) (4) (5)=(3)+(4) (6)=(2)+(5)

1985 -

1986 -

1987 -1988 63 630 - - - 6301989 78 780 1,758 290 2,048 2,8281990 148 1,480 1,862 580 2,442 3,9221991 186 1,860 1,966 870 2,836 4,6961992 211 2,110 2,070 870 2,940 5,0501993 350 3,500 2,174 870 3,044 6,5441994 391 3,910 2,278 870 3,148 7,0581995 433 4,330 2,382 870 3,252 7,5821996 463 4,630 2,486 870 3,356 7,9861997 463 4,630 2,590 870 3,460 8,0901998 463 4,630 2,694 870 3.564 8,1941999 463 4,630 2,798 870 3,668 8,2982000 463 4,630 2,902 870 3,772 8,4022001 463 4,630 3,006 870 3,876 8,5062002 463 4,630 3,110 870 3,980 8,6102003 463 4,630 3,214 870 4,084 8,7142004 463 4,630 3,318 870 4,188 8,8182005-14 463 4,630 3,422 870 4,292 8,922

/a Assumed to be at least equal to average incremental development costs of aboutRp 1l/cu m ($ 0.01/cu m) based on annual average cost of about $3.9 million(including capital and OM&R costs) and an average annual quantity of 395 MCM.(Annex 1, Table 15).

/b Source of data: Feasibility Study - Raw Water Qualit- Protection andTransmission Facilities for Jakarta Water Supply, NEDECO, December 1984,Chapter 11.

/c Without pipeline, a heavy dosage of chlorine (7 mg/liter) will be required inthe first year and an annual incremental dosage of 0.75 mg/l will be requiredin subsequent years (Annex 1, Table 16).

/d Since raw water quality is better with the pipeline than without it, theproductivity of the Pulogadung treatment plant is expected to increase by 18Zafter 1991, valued at Rp 870 million per year. (NEDECO, Feasibility Study,1984)

- 37 -

(b) exclusion of costs of future studies which have no impact on the projectbenefits;

(c) application of a shadow wage ratio of 50Z to unskilled construction labor(para. 7.06); and

Table 7.3: CONVERSION OF PROJECT COSTS TO ECONOMIC COSTSC$ million)

Project(financial) Economic

Category costs costsRatio

ConstructionWTC civil works 24.14 23.60 98Water supply pipeline 9.41 8.14 87O&M equipment 6.82 4.85 71

TA & studies 7.43 2.96 40

Engineering & administration 4.07 3.61 89

Total Base Costs 51.87 43.16 83

Physical contingency 8.66 8.21 95Expected price increase 12.28

Total 72.81 51.37 71

Economic Rate of Return (ERR)

7.11 With these assumptions, the economic rate of return of the entireproject is estimated at about 26Z. Specific ERRs for various components areas follows:

Components ERR (Z)

(a) Irrigation-WTC 38(b) Water supply-WTC 13(c) Water supply-pipeline 19(a+b) WTC subtotal 28(b+c) Water supply subtotal 15(a*b+c) Total Project 26

The-relatively high ERR of the irrigation component is *ainly due to therelatively low cost of improvements under the project, reflecting the effectsof various sunk costs of previous investments. These include the Jatiluhur

- 38 -

reservoir, main, secondary and tertiary irrigation systems, drainage androads. Detailed annual economic costs and benefits are summarized in Annex 2,Table 13.

Sensitivity AnaLysis

7.12 Crossover (or switching) values2l7 for a 10 discount rate werecalculated for a number of variables crucial to the success of the project.Table 7.4 summarizes differences between the crossover and appraisal valuesfor a number of criticaL variables. Since the project has two technicallyseparable components, the WTC and the pipeline, the sensitivity analysisfocuses on these components.

Table 7.4: SENSITIVITY ANALYSIS

CrossoverAppraisal (switching) Change

Critical variables Unit value value (Z)(A) (B) (BtA-1)xzOO

WTC Improvement (Base ERR: 28%)Paddy production $ mln 66.19 -3.28 -105Secondary crops $ mln 18.51 -50.96 -375Water supply benefits $ mln 21.77 -47.70 -319Total benefits $ mln 106.47 -37.00 -65Total costs $ mln 37.00 -106.47 187Economic life years 30.00 8.30 -72

Pipeline to Pulogadung (Base ERR: 19%)Savings in chemicals $ mln 15.60 6.06 -61Savings in treated water $ mln 4.92 -4.62 -194Tnvestment costs $ mln 10.98 20.52 87Economic life of pipeline years 30.00 12.00 -60

Total Project (Base ERR: 33%)Total benefits $ mln 127.00 48.00 -62Total costs $ mln 48.00 127.00 164

7.13 The project as a whole is economically robust, relativelyinsensitive to cost overruns, reduced benefits, or implementation delays.This may be seen in the high switching value relating to the improvement of

17/ The crossover value is the value of the variable tested for which theproject's net present value calculated at 10% discount rate is zero, orequivalently the value beyond which the ERR would be belov 10.

- 39 -

the WTC, indicating that the improvement is economically viable even ifinvestment should increase by 19OZ or incremencal paddy production shoulddecline to nil. Similarly, the viability of WTC's improvement is relativelyunaffected by a reduction of benefits from secondary crops or water supply.It will remain marginally viable even if the economic life of the WTC is onlyeight years. The ERR of the pipeline wouLd be reduced to IOZ by a 61%reduction of savings in chemicals. A 194Z reduction in savings of treatedwater would be required to reduce ics ERR to lO. The pipeLine will bemarginally viable even if its economic costs increases by 87% or its economiclife decreases to 12 years (including three years construction).

C. Risks

7.14 As discussed above, there are no major risks inherent in the pro-posed project except that OLK may be below standard if funds are inadequateand/or management is inefficient. However, OI has indicated readiness toincrease land tazes and assign priority in their use to OLM; PDAM has agreedto reimburse POJ for all incurred expenditures related to raw water supply andGOI has agreed to supplement these funds, as required, for adequate 06M. Inaddition the following steps have been taken to further reduce risks:

(a) the project will initiate a progrm aimed at protecting the qualityof WTC's water resources;

(b) PDAM's share of OUI expenditures will be paid at quarterly intervalsto POJ, in accordance with the agreement between PJ and PDAM;

(c) Incremental IPEDA collections will be applied to Oh and the balanceof funds needed for adequate 01K will be provided by OI throughbudgetary allocations

(d) PDAM's allocated 0&K contributions will be adjusted every threeyears in accordance with actual, incurred expenditures;

(e) POJ will procure under the project appropriate O01 equipment toensure reliable, continuous raw water supply. Funds will be setaside to enable equipmeat replacement and procurement of spares; and

(f) the project will provide technical assistance which will upgradePOW's technical and managerial capability in carrying out 01K works.

- 40 -

VIII. AGREEMENTS REACHED AND RECOMMENDATION

8.01 Before loan negotiations, GOI furnished the Bank with:

(a) an agreement, accepted by the Bank. between POJ and PDAM on thesupply and payment for raw water for Jakarca, which will becomeeffective by July L988. or three months after POJ commencessupplying 11.6 cms to PDAM's treatment plants, whichever earlier,specifying that PDAM will pay POJ an annuaL payment to cover allallocated investment and OM&R costs and POJ will provide PDAM anuninterrupted, agreed upon supply of water of a given quality(para. 5.05); and

(b) a detailed implementation schedule for mapping of Jatiluhur'sirrigated lands by December 1988; reclassifying and reassessingIPEDA rates by March 1990 (para. 5.09);

8.02 During negotiations, assurances were obtained from GOI that:

(a) Consultants, whose qualifications, experience, terms and conditionsof employment are acceptable to the Bank, will be engaged not laterthan indicated in Table 4.1 (para. 3.07);

(b) Agencies participating in this project will maintain separaterecords and accounts related to project expenditures; accounts willbe audited annually by independent auditors acceptable to the Bank;all contracts, orders and receipts will be kept at least two yearsafter loan closing, and audited reports will be forwarded to theBank within nine months following the end of each fiscal year (para.3.16);

(c) GOI will implement construction of the project in accordance withthe implementation schedule (para. 4.01);

(d) GOI will implement the mapping and assessment for IPEDA inaccordance with the implementation schedule (Table 4.1);

(e) GOI will cause Cipta Karya and PDAM to complete the expansion of thePulogadung treatment plant by September 1988 and its distributionsystem by September 1989 (para. 4.09);

(f) GOI will cause DOI I of DGWRD to submit to the Bank for coument byJuly 1986 a comprehensive M&E scheme for project works construction;cause POJ (assisted by DPP) to submit at the same time a comprehen-sive N&E schedule for O&M, crop production, farm income, changes inland tenure and distribution of project benefits and comence itsimplementation by July 1987 (para. 4.11);

(g) 001 will cause IPEDA to update maps of the Jatiluhur mervice areafor reclassification by December 31, 1988 (para. 5.09);

- 41 -

(h) COI will reclassify lands and reassess IPEDA in the Jatiluhurirrigated area by Karch 1990 (para. 5.09);

(i) 001 will cause the West Java Provincial Government to allocateincremental IPEDA collected in the Jatiluhur service area to thefinancing of O&M of main and secondary irrigation in such area. Inaccordance with a schedule, acceptable to the Bank, to be furnishedto the Bank by December 1988;

(j) COX will, at alL times, make availabLe adequate funds Ear O&M ofJatiluhur's irrigation system, and those required for the reliablesupply of raw water to Jakarta in quantities and quality agreed uponbetween POJ and PDAM, in addition to such funds which may becomeavailable from other sources (para. 5.09); and

(k) GOI shall cause POJ to inspect the Jatiluhur dam, reservoir banksand associated structures at 3 year intervals with sound engineeringpractice and to remedy without delay any deficiencies which mayendanger the safety of the dam and its structures. GOI will causePOJ to propose appropriate arrangements for the Bank's review notlater than December 31, 1985 (para. 4.06).

8.03 Signing of civil works contract No. 1 will be a condition of loaneffectiveness (para. 3.12).

8.04 With the above agreements, assurances and conditions, the projectwould be suitable for a Bank loan of $43.4 million with a 20 year maturity atthe standard variable rate, including a grace period of 5 years. The Borrowerwould be the Republic of Indonesia.

-42- -

II S COAL -_r r MOJ

Climtsbol al Data

Jam ftb 1k, Apr lry Jm JuL An Sep Oct Now bec Total

J = sta 390 322 242 126 117 37 55 53 66 92 135 130 1,370laramang 331 317 202 161 119 69 47 42 37 93 163 179 1,799sets C ast 415 261 322 267 189 129 69 62 106 196 265 237 2,518Cibaruaab 366 326 330 269 236 114 103 96 133 204 273 229 2.701

awpraetusr. t 0C)

Jakarta 30.1 30.1 31.2 32.1 32.4 32.1 32.1 32.2 32.8 33.0 32.2 31.3USgor 29.3 26.5 30.4 30.7 30.6 30.5 30.3 30.5 31.4 31.3 30.6 30.2

MhanJakarta 26.3 26.3 26.9 2.5 27.7 27.2 27.0 27.1 27.6 D j 27.3 26.7Usger 25.0 25.1 23.4 25.6 25.9 23.6 25.5 25.4 23.8 26.2 25.7 25.6

Jakarta 23.5 23.7 23.7 24.1 24.1 23.2 22.6 22.7 23.2 23.8 23.9 23.7Usgor 22.5 22.4 22.7 22.9 22.6 22.3 20.3 21.8 22.3 22.9 23.0 22.6

lAlatlwe _ LUlt! (Z)PuzimoJakarta 96 96 96 95 95 94 92 90 89 91 94 95Uasr 96 9 97 6 96 95 95 93 94 94 94 97

Jasrta 85 63 83 62 80 75 76 74 73 75 79 82Usgor 91 90 6 9 6 82 61 76 S0 61 63 36

Jakarta 66 67 63 62 59 55 54 51 51 54 59 62__,or 74 73 69 70 67 62 62 57 58 59 66 64

Sunshine CZ)39 47 57 68 70 71 75 83 62 71 56 4

luger 27 32 51 55 56 51 49 60 63 59 4 41

Vlod DirectlosJakarts 3w MV WI 3 Z 3 1 K 3 3 N nuluger - MV U Mg a mg HE Na NE I I I

WInd Velocity (al)Jakarta 1.6 1.7 1.5 1.5 1.6 1.6 1.6 1.7 1.6 1.6 1.9 1.5lager 0.6 0.5 0.5 0.5 0.4 0.4 0.4 0.4 0.5 0.5 0.6 0.6

103-y) Pzm)Jakarta 4.1 4.4 4*. 4.9 4.6 4.3 4.6 5.2 5.7 5.6 5.0 4.5lager 3.3 3.6 4.2 4.0 3.7 3.3 3.3 3.9 4.4 4.6 4.2 3.9

Sources C-J-C Water l.em-oec DUmelopme.t lan. Aooz 0. Segtra2-Coyse & £ .111.t, 1978.

ANNEX 1Table 2

4 43 -

INDONESIA

WEST TARUM CANAL IMMOVEMENT PROJECT

trm SKre and Land Tenures /a

Farm household Land areaPara size Cu-mla- Cumula-

(ha) Nmber Z tive (Z) ha X tive (Z)

Lese than 0.499 60,331 54 54 15,082 17 170.5-0.99 24,402 22 76 18,301 20 371.0-1.99 17.358 16 92 26,037 29 662,0-2.99 5,682 5 97 14,205 16 82

More than 3.0 3,980 3 100 15,920 18 100

Total /b 111s753 100 100 89,545 100 100

Land TnuresOwner-operator 74,875 67 - 65,368 73 -Tenants /c 27,938 25 - 19,700 22 -

NIx /d 8,940 8 - 4,477 5 -

Total 111,753 100 - 89,545 100 -

/a Source: Agriculture Etenslon Service, Uekasl District, 1983.

/b Covering the Bekasl district wvlch is essentially the same as the proejctarea.

_c Mostly share croppers.

/d Owner-operators who are also tenants.

ANNEX ITable 3

-44 -

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

River Flow

Mean Reliable /aDaily

Annual Dis- discharge Annual Dis-River runoff charge range runoff charge lb

(MCK) (cms) (cus) (MCM) (cm.)

Citarum (at Jatiluhur Dam,CA - 4,550 sq km) 5,800 182.8 6-466 5,500/c 173.8

Cibeet (at weir,CA - 507 sq km) 1,180 37.4 1-116 380 1.7

Cikarang (at weir,CA - 238 sq km) 500 15.9 1-52 185 1.0

Bekasi (at weir,CA - 412 sq km) 1,030 32.7 5-73 435 5.6

Ciliwung (at Rajawari,CA - 318 sq km) 535 17.0 4-20 158 5.0

Sunter Creek 0.8-2.5 25 0.8

/a Eighty percent of the time of an 11-year series, except as noted.

/b Revised series of 100 years.

/c Average monthly.

Note: See project files for details.

Legend: CA - Catchment area.

INDONESIA

WEST TARUI CANAL INPROVDENNT PROJECT

Sediment Transport

ExpectedMean Total Grain size Expected /a Expected /b quantltyconcen- annual distribution diversion quantity to Percent to settle

River tration load d90 d7 d5 0 into WTC be trapped trapped in canals(ag/i) (cu a) (cu m) (cu a) (I) (cu a) /c

Citarux (atCurug) 76 603,000 0.020 0.007 0.002 157,000 41,000 26 7,000

LnCibeet (atweir) 270 428,000 0.010 0.004 0.002 111,000 22,000 20 17,000

Cikarang(at weir) 185 125,000 0.010 0.002 - 45,000 7,000 16 5,000

Bekasi (atveir) 230 317,000 0.015 0.007 0.003 155,000 27,000 17 1,000

Total 1,473,000 466,000 97,000 21 30,000

/a Operating at remodeled capacity.

/b Twenty percent of material of grain sizes between 0.002-0.008 n; 95Z of larger material, assumingefficiently operated silt traps. x

/c Remainder of material in the .002-.008 - grain size. Smaller particles in the colloidal range areexpected to remain suspended till reaching fields, or treatment plants.

-46-

INDONESIA

WEST TARUM CANAL IIISOVE1UE PROJECT

Summry of ater .llty A(us/liter)

Organic Dissolvedmtter oqing AiO.Iim Nitrites(D10) (02) (CN3) ("D 2 ) DOD

Desired quallty 10.0 5.0 0.5 0.5 5(DKI standard) (mi)

Pejoupougan Intake 7.2A 3.5 0.3 tresc 126

Pulogadung intake 10.6 1.0 1.9 u.a. C200/e

-TC /d 12.6 5.0 0.3 trasc 1.9

/a wTC Enlargemnt Project, Definitive Plan, Vol. 4, UEDUCO, January 1.

lb At MHngeral. No data available for ?J Intake.

/c 119 mg/llter at Kali Suter, 400 mg/liter at Cipliag Creek.

/d Bekasi-Jakarta Reach.

47 - ~~~~~~ANNEX I-47- Table 6

INDONESIA

WEST TARUM CANAL INPROVEKENT PROJECT

Irrizatioa Nequirements

Seasonal requirement PeakArea Vat season Dry season Annual total requirement

Block (ha) as MCM m MCM mm MCM (1/sec/ha)

II 13,430 1,100 147.4 945 126.9 2,045 274.6 1.54

ITI 13,860 970 134.4 960 133.1 1,930 267.5 1.48

IV 13,940 870 121.3 980 136.6 1,850 257.9 1.30

V 13,050 815 106.3 1,010 131.8 1,825 238.1 1.29

VI 13,100 820 107.4 1,040 136.2 1,860 243.6 1.26

Total 67.380 617.1 664.6 1,281.7

ANNEX 1-48 T able 7

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Water Demand and Supply(NCM)

Year: 1990 2000

WTC"0emand

Irrigation (67,400 ha) 1,300 1,300Jakarta M&I 356/a 680/aFlushingCentral Jakarta 37 37East Jakarta - 200

Riparian releases 53 53Conveyance losses 150 175

Subtotal 1,896 2,445

Clbeet -296 -296Cikarang -168 -168Bekasi -397 -397

Subtotal -861 -861

ETCemandirrigation (90,250 ha) 1,921 1,921

SupplyLocal rivers -893 -893

NTCDemandIrrigation (78,847 ha) 1,836/b 1,836Flushing 66- 66Coastal strip 70 70Miscellaneous and reserve 266 266

Subtotal 2,238 2,238

SUPP1YCikao Tributary -105 -105

Total demand 6,055 6,604Total supply, local rivers 1,957 1,859

Release from Jatiluhur *4098 4,745

/a See Annex 1, Figure 1.7W Including 225 MCK canal losses.

Source: NEDECO, Cibeet Feasibility Report, 1983, updated by recent (1984)projection revisions of treatment capacities.

ANNEX149 Table 8

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Conveyance Capacities

Conveyance capacityOriginal 1982 1984

Location/reach Station design survey design(km) - - - (cms) -

Pumping Plant, Curug 0+000 85.0 56.0 78.2/a

Curug-CibeetIa 0+233 85.0 56.0 82.0/blb 7+183 84.5 55.0 80.0I Ia 17+713 81.3 40.0 76.1Ilb 21+635 77.0 44.0 72.5

Cibeet-CikarangIiIa 23+925 - - 69.3IlIb 24+460 80.2 48.0 80.1/cIVa 26+444 65.9 41.0 56.1IVb 30+561 57.1 41.0 53.9iVe 33+091 48.7 33.0 49.3

cikarang-BekasiV 37+131 44.6 24.0 39.3VIa 42+000 32.2 18.0 34.6VIb 48+396 29.5 25.0 32.0VIc 52+399 21.4 19.0 31.3

Bekasi-CiliwungVIIa 59+867 14.0 5.8 21.1VIIb - Buaran 63+648 14.0 5.8 21.1VIIc - Sunter 67+067 10.8 5.1 12.5Siphon/tunnel 68+560 10.8 6.0 12.5Ciliwung 69+700 10.8 6.0 11.7

/a Including 5% reserve capacity.

/b Including 10% reserve capacity.

/c Including influx from intersected rivers.

Source: NEDECO - Virama Karya's Definitive Plan, January 1984.

INDONE^SIA

VEST TARII CANAL I4PRIVWD4ENT PROJFC`

coulting Esrviecs - t tenoroes and Estimated Schedules

1985 _ 186 1987 191U 1989 TotalLocal Local Local Local * oeol loo el Local Local Local Local Local Local wase

A4ency/ Expa- protes- technt- zxps- proae- techni- Expa- profe- techni- Expa- profe- techni- r pa- profe.- techni- Ezps- profes- techni- costdescription triete $tonal. cians triate atonals cians trlata elonsls cians triate snonlsa eians trata sclonala ciana triate smonals clans (50no)

Strengtheninginspection 0 0 0 3 10 0 3 10 0 0 1n 0 0 0 n 6 30 0 ISO

lmplientatlonmanagment 21 58 R6 21 58 86 15 58 36 13 M 86 13 Ss 86 84 290 430 2 278

Design 0 0 0 0 0 a 0 0 a 36 69 145 1 72 136 24 1,571

Water qualttyprotection I 5 22 3 24 43 3 24 43 0 0 ti 0 n 0 7 54 108 354

subtotal 22 63 108 24 62 129 iI- 82 129 49 127 73I 49 127 231 163 482 82F 4.203

04W 0 0 0 0 0 0 20 36 72 20 36 72 20 36 72 60 106 216 1,260vae Safety 0 0 0 6 0 a 6 0 0 0 0 0 0 0 0 is 0 0 216

Subtotal Q Q Q 6 Q 0 26 36 72 26 36 72 20 36 72 78 108 216 1.476

Total 22 63 108 33 92 129 47 128 201 7S J13 303 69 163 303 247 620 1.044 5.829

AprlIles 1

ANNEC ITable 10-51 -

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Proposed Allocation of Loan Proceeds(US$ million)

Total cost includingcontingencies and

Description expected price increases Loan Amount

Civil WorksWest Tarum Canal 31.07 16.34Pulogadung Pipeline 11.70 6.15ROW 4.26 0.00

Subtotal 47.03 22.49

EquipmentOperation 0.10 0.10Maintenance 7.08 6.95Dam safety 2.30 2.15

Subtotal 9.48 9.20

IPEDA Mapping 2.12 2.12

Technical AssistanceIPEDA 0.20 0.16DGWRD 5.99 5.03POJ-0&M 1.86 1.60POJ-Dam safety 0.30 0.30

Subtotal 8.35 7.09

Engineering and administration 5.82 0.00

Unallocated 2.50

Total 72.80 43.40

ANNEX 1Table 11

- 52 -

INDONESIA

WEST TARUM CANAL INPROVEMENT PROJECT

Estimated Schedule of Disbursements

Bank Profile (cumulative)fiscal year Disbursements Indonesia Regionaland semester Semester Cumulative Project projects Average

-- (US$ million) - (z) _

1986Second 0.4 0.4 1 2 7

1987First 0.5 0.9 2 6 11Second 3.4 4.3 10 10 17

1988First 3.5 7.8 18 16 23Second' 3.5 11.3 26 22 31

1989First 3.9 15.2 35 29 38Second 3.8 19.0 44 37 46

1990First 2.2 21.2 49 45 54Second 3.5 24.7 57 54 61

1991First 4.4 29.1 67 63 68Se_ond 3.5 32.6 75 72 74

1992First 6.0 38.6 89 79 80Second 4.8 43.4 100 85 85

S~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

ANNEX 1-53 - Table 12

INDONESIA

WEST TARUN CANAL IMPROVEMENT PROJECT

Jakarta's Projected M&I Water Needs

1990 2005

Target population served (million) 5.4 8.8

Net unit demand (lcd) 154 232

Assumed efficiency (Z) 257 309

Gross unit demand (led)

Gross production required (MCM)Daily 1.38 2.72Annually 504 992

Raw water required /a (cms) 19.6 38.7

/a At plant inlet, on maximum day (1.15 x av. day), at 7Z plant losses.

ANNEX 1Table 13

-54-

INDONESIA

WEST TARUM CANAL ENLAGEMENT PROJECT

Cost Allocation($ million)

N&I RawIrrigation water suply

Amount (Z) Amount- (Z) Total Amount

Investment costs /aWTCCurug-Bekasi (Jointfacilities) 24.67 (70) 10.57 (30) 35.24 (100)

Bekasi-Jakarta (Watersupply only) - 4.74 (100) 4.74 (100)

O&M Equipment(Joint use) 3.22 (30) 7.53 (70) 10.75 (100)

Subtotal 27.89 (54) 22.84 (46) 50.73 (100)

Pulogadung Pipeline (watersupply only) - 15.96 (100) 15.96 (100)

Total Investment Costs 27.89 (42k 38.80 (5H 66.69 (100)

Recurrent CostsOM&R CostsWTC O&M (first year) 0.56/b (54) 0.46 (46) 1.02 (100)Replacement of O&Mequipment /c 0.64 (30) 1.50 (70) 2.14 (100)Pipeline 0OMd/d - 0.40 (100) 0.40 (100)

Total 1.20 (34) 2.36 (66) 3.56 (100)

/a Including engineering, administration, physical and price contingencies.7T; Estimated as 2% of WTC improvement costs, to be increased annually at 10%./c Based on capital recovery at 10-year uniform series with 15% Interest p.a.7Td Estimated as 2.5% of investment costs in the pipeline, to be increased

annually at 10%.

ANNEX ITable 14

-55-

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Estimated Raw Water Charges

First1988/ 1989/ 1990/ 3-years89 90 91 /f average

Project WorksWTC improvement In servicePG pipeline - In service

Recoverv of Allocated Capital Costs /aWTC ($19.06 million) 2.84 2.84 2.84 2.84Pipeline ($17.03 million) - 1.98 1.98 1.98

OM&R CostsWTC O&M /b 0.46 0.51 0.56 0.51Equipment replacement lc 1.50 1.50 1.50 1.50Pipeline 0&M /b - 0.40 0.44 0.28

Total Annual Costs CS million) 4.80 7.23 7.32 7.11

Expected Water delivery (MCM) /dMedium projection (Q1) 230.00 245.00 253.60 242.87Righ projection (Q2) 232.00 298.00 318.00 282.67

Estimated Water Rate (Rp/m 3 ) /eWith 01 /d 20.8 29.5 28.9 29.3With Q2 7-T 20.7 24.3 23.0 25.2

/a Based on a uniform 30-year capital cost recovery at 12X interest rate per annum.WE Assuming OM costs to be increased annually by 10%.7-c Based on a uniform 10-year capital cost recovery at 15% interest rate per annum.7Td Projected quantities are based on assumed gradually increased demand (Q1) and on the

planned installed capacity of treatment plants (02)./e These rates are for reference only, subject to actual costs and updated estimates of

delivery./f Assuming Buaran treatment plant to be in service in 1990/91. After that, a series of

other investments including a pipeline for the Pejompongan plant, and construction ofa new West Tarum Jaya canal will be Implemented and their effects will be addedaccordingly.

NNC 1Table 15

-56-

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Projected Demand for Raw Water Supply

Demand for raw waterfrom WTC by treatment plants

IncrementalTotal quantity quantity supplied by

(C0S)/a (MCM)/b the project (MCM) /c

1985 3.6 114 -

1986 3.6 114

1987 5.3 167 -

1988 7.3 230 63

.i98 7.8 245 78

199% 10.0 315 148

1991 11.2 353 186

1992 12.0 378 211

1993 16.4 517 350

1994 17.7 558 391

1995 19.0 600 433

1996 20.0 630 463

1997-2014 20.0 630 463

/a Based on projections on Figure 1, Annex 1./b Converted at 1 cms - 31.54 SCM.

7-c Assumed . aximum delivery of 167 MCM/yr without the project.

ANNEX 1Table 16

- 57 -

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Dosage and Value of Chemicals Used at the Pulogadung Plant /a(Raw water volume 139 MCM, 1985 constant price.)

Future with- Future with FuturePresent out project project difference(1984) (1989) (1989) (1989)

Alum ($165/t)Dosage (mg/l) 53.0 53.0 30.0 23.0Value ($ '000) 1,216.0 1,216.0 688.0 528.0

Lime ($55/t)Dosage (mg/l) 16.4 16.4 10.0 6.4Value (5 '000) 125.4 125.4 76.4 49.0

ChlorineDosage (mg/1)Treatment plant lb 7.0 10.0/b 0.5 9.5Pipeline from WTC 6.0 0.0 1.0 -1.0

Value ($ '000) 973.0 1,390.0 208.5 1,181.5

Total Value (§ '000) 2,314.0 2,731.4 972.9 1,758.5

/a Source: leasibility Study: West Tarum Canal Improvement Project, RawWater Quality Protection and Transmission Facilities for Jakarta WaterSupply NEDECO, November 1984.

/b At an annually increasing dosage of 0.75 mg/l, valued at about Rp 104 mil-lion per year.

ANEX 1

- 58 - Table 17

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

PDAM's Income Status Before and After Project /a(Rp billion except as specified, in current prices)

Before project After project(1984) (1992)

Basic DataPopulation (million) 5.30 6.90X of population served 39.00 79.00Volumes sold (MCM) 82.20 250.60/bAverage tariff (Rp/m ) 250.00 536.0/c

Operational Costs and IncomeGross sales 20.55 134.32Connection fees and other ia.come 6.4 22.80Total operational revenues 26.95 157.12Total operational costs 12.44 73.31/dRaw water charges 0.06 7.047TeIncome before depreciation 14.45 76.77Depreciation 0.00 12.59Operational income 14.45 64.8

Net IncomeOperational interest 2.61 54.26Net income before tax 11.84 9.92Tax (40%) 4.74Net income after tax 7.00 5.95

/a Figures projected for 1992 are preliminary, and unless specified, arebased on JICA's Interim Financial Review for Jakarta Water SupplyDevelopment Project, July 1984.

/b Based on projected raw water delivery of 378 MCM, 10% of treatment lossand 26X of unaccounted for water.

/c Based on 1984 tariff with 10% increase p.a.Td Excluding effects of savings of the proposed pipeline for Pulogadung

plant./e Extrapolated for 1992 from Annex 1, Table 14.

- 59 - ANNEX ITable 18

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Cost Recovery and 0&M Requirement in WTC Area(Rp '000/ha in 1985 prices)

IPEDA WUA fees Total(for main (for tertiarysystem) system)

Total RecoveryPresent /a 13.3 6.5 19.8Future without project 45.0/b 7.0 52.0Future with project 5o.d7T 8.0 58.2

Gross Incremental RecoveryFuture without project 31.7 0.5 32.2Future with project 36.7 1.5 38.2

Net Incremental RecoveryFuture without project 24.3/d 0.5 24.8Future with project 28.17w 1.5 29.6

Projected O&M RequirementPresentLOw 18.6/e 6.5 25.1High 22.07oT 6.5 28.5

Future Without ProjectLOw 18.6/e 7.0 25.6High 22.07T 7.0 29.0

Future With ProjectLow 24.0/g 8.0 32.0High 29.0li 8.0 37.0

/a Based on current IPDA rates for Class 7, land holding size of 0.8 ha, andpaddy price of Rp 95/kg.

/b Based on future expected IPEDA rates adjusted by: (i) raising produc-tivity class to Class 2 and (ii) increasing paddy price from Rp 95/kg toRp 165/kg.

/c Based on raising productivity class to Class 1; paddy price, Rp 165/kg.7Td Net of collective fees (10) and a collection efficiency of 852.7 Based on POJ's estimated requirement of Rp 18,600/ha In 1982/83 (Annex 2,

Table 2) without adjustment for Inflation./f Based on DGWRD's 1983 estimate of Rp 18,600 ha adjusted to 1984 prices.T- Based on POJ's OEM budget of Rp 10,400/ha in 1982/83 plus annual O&M costs

for WTC (irrlgation component only) of about Rp 13,600/ha./h Based on /f above plus Rp 7,000/ha for replacement of 01W equipment

(irrigation only) for maintenance of the WTC.

ANNEX 1Table 19

rNDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Irrigation Rent Recovery

Incremental valuesat full development

- (Rp '000 at 1985 price) -Mbdel farms

0.3 ha 0.8 ha 1.5 ha

Gross value of production /a 106.11 289.51 513.82Less cash production costs 14.15 41.71 120.54Less harvesting costs /b 10.61 2R.9, 51.38

Equals: net cash income 81.35 218.85 341.90Less imputed family labor costs /c 20.96 54.25 49.90Less imput'ed farmer's management7Td 5.31 14.48 25.69Less allowance for risks/uncertaintles /e 15.92 43.43 77.07Less general taxes /b 10.61 28.95 51.38

Equals: Project rent 28.56 77.75 137.85

Rent as 2 of net cash income 35.10 35.52 48.32Land taxes (IPEDA) /f 1.50 4.00 8.00Tertiary 06M charges /8 0.30 0.80 1.50

Total Direct Charges/Year 1.80 4.R0 9.50

Rent Recovery Index (t) 6.30 6.17 6.89

/a From Annex 2, Table 11, on farm budgets.7T 10% of gross value in item 1.7Tc At Rp 1,000/day based on incremental farm labor requirement.7Td At 52 of gross value in item 1.7Te At 152 of gross value in item 1.Tf Based on an expected future IPEDA rate of Rp 45,000/ha without project and

RP 50,000/ha with project for average size (0.8 ha) farm (ANNEX 1,Table 18).

La Including WUA fees of about 25 kg paddy/ha/crop.

Er 141111ft'

MOWAM CM' rJE' MM 11111111 ARAIP4 JOR311111110 StAPOW ggrjft gWMU 0 W,- so" as 1111:00CON so

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mn" an..... . .. ...

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MIN a "ot 4IV-30-0

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WORM dMn W-jas fif-106I MY&S V4lL4 i4W%L3 44QL4%.4 nJ 1,11413 t

GOMAIJ 44 WRXI P-OLO b4al 06pa 6 00460 ly.Jw.f VF.AtsLz .........

blOda &ml a316 ant-9-46! mAL qL I

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6414AILS

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li* $Ad 11111 CM MA I'My..8

LJI^ nonums 1.111641" 4Pfr-4 TRIANSAI nJ lWArJ

IPARA lqbw.3 314.0 SA Mg'-

... ... ... 3111,ftJ W46Ll IC4" JtAMLI 14S411114 SJ MW.'

........ . ....... .

IL Om wris PANAMA W60164 FOL~ WrAwj A-W.� 9LJ 1U.31W

.1-1040.8 sj 31&=J

4-C%411LI 1140-ow 3ij IC-'I'.l

0--b"k? 3-IMLOJLJ I&Jb,,ILA '%m's lAmwWa-311.5 l.NJAkj 3.lr4oj 64%40j VwW4UJ 30 16=dk.3

WOO M 14 OM was.am, =41LI

ftowim fmowv^ 916411cm mw 1 11440 6'ftg Wlb4Wl 31C."A 20-M-8 41-104161 " 1.1 I

owwo n&oas 22,wo S.31m.6 '-JR j gjft'.; W.J.,: 4126&'t_l US,'X.' 3,-:N3*Ll

#Ad $111m c1114 Male-A 304PA o,%&: 4C.244 ISM&OP'l l%ot&&U aft.1wo IN.V61m.1 W.W.8 164M.W.: JW-M4 JWW"V "%ICJ 0.60.2p 1 14i is-mm.j

W-dLdTZZ .4 3

oftNte :40W.2 I.NLN&s A-01 3 4r-'314'n I bLI A-K.4104

......... ... ....... ... ...... .

-62- ANNEX 1Taule 21

INDONESIAWEST Tru CANAL INPROKET MJECT

Project Coeuonts bY YearCRP 'e000)

Base Costs Total

1995 1996 1997 1998 1989 1Y90 RP {USs '000)

A. 031 WALIN

FfAY - 327,036.3 671,304.4 490,554,4 - - 1489,995.0 14353.5ENEGENCY SATES - - 104,365.4 - - - 1046365.4 "9.TIIRIIE OUTLETS - 25i74.0 6242694.0 60,000.0 - - 14,W063.0 134.6IfTERNUL COIUINICATION ROADS - 5,691.5 9,537.3 89537.3 - - 229766.0 20.711NE RELIEF - - 31046.0 - - - 311046.0 23.2

Sub-Total CURUG IEADIDRKS - 358,521.9 977,522.0 59,091.6 - - 1,795,135.4 19631.9B. CURU6 CIBEET SECTION 1,099,750.0 1,B99,596.3 4,0279824.7 4,027,924.7 11O42U,Y0.6 10,039.1C. CIIEET IEASI SECTOMN 777,900.0 91000.0 2,369,6607 3,492,253.0 30492Y25.0 - 10,211P97407 9,283.6D. BEKASI JAKARTA SECTION 976,275.3 1,955,977.9 672,191.1 - - - 3,504,434.2 3,185.9E. TREATrENT PLMflN COMIECTIONS

PULOGADUNG PIPELINE - 2,945,790.0 4,729,94.0 2,680,440.0 - - 10,3Sf,17090 9Y414.7

Sub-Total TREATHENT PLANTS CRECTINS - 2,9457900 4672944090 2,6440.0 - - 0l3i ;170.0 9414.*7F. GIN

WVERATION AND MINTEANWCE

WPERATIONAL EWUIPIIENT - 39,600.0 39,600.0 - - - 79,200.0 72.0NAINTENANCEEUIPNENT - 2,750,000.0 916,575.0 916,575.0 916575.0 - 5,499,725.0 499.9DAN SAFETY EUIPIENT - 1,925,000.0 - - - - 1925,000.0 1,750.0

Sub-Total 0L7WPtATINoN AND MAINTENANCE - 4,714,600.0 956,175.0 916.55.0 916,575.0 - 7,503,925.0 68121.8

6. INSTITUTIONAL ASSISTANCE

TRAINING - - 461,93.9 461,953*8 461.953.8 - 1,315,961.4 1.259.9SIERISION 556,600.0 556,600.0 470.994.0 456,909.0 456,80B.0 2,505900O.0 2,278*0PANN 62436.0 1,079,152.9 1,092,408.9 39,9.9 - - 2,551,996.8 2,320.0IEIGN - - - 863,940.0 863,940.0 - 1727,90. 1.570.8

SubTotal INSTITIITIONAL ASSISTANCE 619,036.0 1.634,752.9 2,033,46.7 2,101,700.7 1s7I2v701.8 - 9,171.539.2 7,4237H. ENGINEERING AND ADMINISTRATION 316,234.3 1,030,455.2 1,417,099.7 1,226,974.7 494,199.1 - 4,474,843.1 4,068.0

Total MMAE INE COSTS 3,788095.6 14.509,613.9 17,092,7480 15,004759.8 6,675,719.0 - 57,061,006.2 51P973.6hsical Cmntiengies 569.214.3 2,595,997.5 2,972,759.1 2,446,2594 1,049,478.0 - 9,522696.3 89,657.0Price Continrncies 150,035.5 1,704,220.6 3,751,450.5 4,943,169.6 29956,645.4 - 13,505,521.6 12,277.7

Total PROJECT COSTS 4.506.345.5 189799,992.0 23,706,956.5 22,394.187.7 10,681,942.4 - 80,089,224.1 72,90B.4==___ u=___=a= = u=__ = _~ _ -=

Taxes 192,419.0 900,197.9 1,862,987.5 1,724,565.4 610,799.1 - 5.290.867.9 4909.9Forei Exchdure 1532,204.6 12,34,576.6 13,B16.215.4 12,970,137.9 7,025,47.4 - 47,728,691.9 43.389.7

April 15, 1915 14:35

- 63 _ Table 22

INDOIESIANEST TARUI CNAL IIIPROUT PROJECT

PROJECT COST SUNNAMY

(RP '000) (USS '000; Z Total- - ---------- rZForeign Base

Local Foreign Total Local Foreign Total Excdhe Costs

A. MO WAJUS

F AY 497,992.0 1,O00,913.0 1,4899895.0 443.6 909.9 1,353.5 67 3EJERGENCY rATES 35,717.8 68,647.6 1044365.4 32.5 62.4 94.9 66 0TWDIE OUTLETS 49Y952.9 98,110.2 149,063.0 45.4 89*2 134*6 66 0INTMENAL CIUJNATI Rs 11,521.1 11,244.9 22,766.0 10.5 10.2 20.7 49 01AINE RELIUF 11,199.6 199846.4 31,046.0 10.2 19.0 28.2 64 0

Sub-Total CURM HEAWORS 596,373.3 1.1987621 1.795,135.4 542.2 1.089.8 1P631*9 67 31. CW111 CIDEET SECTION 5,471,011.0 54571P974*6 11.O42.995.6 4.973.6 5,065.4 10,039.1 50 19C. CIEET JU1M6I SECTION 3,02953.4 7182442.3 10,211,974.7 2.754,1 6Y529.5 9,293.6 70 18D. 311ASI JKRTA SECTION1 1899182.3 1615P251.9 3,504,434.2 19717.4 1,468.4 34185.8 46 tE. TREATIENT PLANTS CMECTIONS

PIOAINS PPELINE 4,291,995.0 6,064,175.0 10,356,170.0 3t901.8 S5,12.9 9P414.7 59 19

Sub-Total TREATET PULNTS CI1ECTIONS 4.29995.0 64064175.0 10.356.170.0 3,901.8 5.512.9 9,414.7 59 19F. ON1

IPATII ID A AINTENAICE

PERTIONAL E0UIPIEIT 3,960.0 7,240.0 79,200.0 3.6 69.4 72.0 95 0AINTONE EIIUIP 274,986.3 5.224,738.8 54990725.0 250.0 4,749.8 4.999.8 95 10DM SETY EUIPIMff 96.250.0 14828,750.0 1.925.000.0 97.5 1,662.5 1,750.0 95 3

STotal 0311WRTION AND MINTEWCE 375P196.3 7.128.728.9 7,503,925.0 341.1 6,480.7 6,821.8 95 13

1; INSTIWT10WL ASSISTAICE

TRIUNIN 475,152.5 910,706.9 1.385,861.4 432.0 827.9 1,259.9 66 2SIFERVISION 1P099,660.0 1,416,140.0 2,505S800.0 M90.6 1P287.4 2,278.0 57 4PiLANNNG 553,059.1 1,996,937.6 2.551,996.8 504.6 1,815.4 2,320.0 78 4ESIGN 609,048.0 1.118,832.0 107278980.0 553.7 1,017.1 1570.8 65 3

Sub-Total INwSTITUTINA. SSISTANCE 2.729,919.6 5.42W618.6 9.171v538.2 2,480D. 4,947.8 7,429.7 67 14H. ENGINEERING AND ADNINISTRATION 4,474,843.1 - 4,4749843.1 4,068.0 - 4P068.0 - 8

Total ASELINE COSTS 22,857,053.1 34P203Y953.1 57,061,006.2 20.779.1 31,094.5 51,875.6 60 100Phtsical Contingencies 3P732,458.2 5,790W238.2 965229696.3 3,393.1 5,263.? 8P657.0 61 17Price Continrtncies s,771,o20.9 70734.50.6 13,505521.6 5,246.4 7,031.4 12,277.7 57 24

Total PROJECT cOSTS 32.360.532.2 47,728,691.9 80,0899224.1 29,418.7 431389.7 72,808.4 60 140

APril 15. 198S 14:39

-64-_ ANNEX 1Figure 1

INDONESIAWEST TARUM CANAL IMPROVEMENT PROJECT

Projected Demand and Supply of Raw Water to Jakarta

36.836.2

32031.5

L-~~~~~~~~~~~~~~~ 29.8

29.1

:~~~~~~~,~~~~~~~-~~ 000- tX

YEAR 8061828361146566876 l +6189 90 919293 45

[111ASG11 IS!PHSE _2ND PHASE IMM |1ST P AE= _)FIbE= 11FHASE 2NDl PHASE RRS1 STGE SECOND SAGE

114 ~ ~ I

Su~~xan~ L 7Ele Pat twa1-vl sxrc<~~~oto lnst Ile t Capct t tyt i r1 EfluEctn 0 1 02 Eosl n 4 05 i86 -| i S- -- K 90gl2193 195 9| | 91 | 98 992| e | 2 I 3 I 4.

Sutototos(East, 6 00o 0° 90 4 I .416et0 - . |196| | | i 220|,' | -

Leatcokulus …_| ………_||_| = |[||3 10° ¢

PHASIoNG _S oeHIS* 2N PK2SE IM JITHSI _ | N | P|HASE IS PHASE I IN RI t §b

CIntlled Plan Woue -e …

PepnVonans - 0611 - -…

Sutatar(n esl) O| 12 |---{ | - 42 | | | | | 72 142

TCtatstu etCcapct, - 7 - - - -- - - 1 - .536E -

SuootaEaas 6 63 66 7FS 90 1501 11 31125143714 161 113e 84196196 19.61196 22.246 214 30 |3262

EaSteEast 6 --- 3 66 736 53 731780lOl 12.5 13649 171 93120218 1621216 22.2 44 8 273 30 3Prom…on 3ct------- --

Wostetn RM.m - - - - 3 1 |||>|70

Anuial average a¢ laon ,nite. aa&on to Macl 're carweyed bV the %,IC & boncd l2000 by an oddl1Kna1 CarKd

Wrld fl&tnk-26995

ANNEX 2- ~~~~~~Table 1- -. -

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Jatiluhur Authority (POJ) Income and Deficit Statements /a(unit: Rp)

1980/81 1981/82

A. POJ Income StatementsOperating RevenuesSales ot eiectric power 3,070,265,753 3,454,900,577Sales of water supply 64,944,829 98,595,284Tourist industry 78,013,857 69,992,949Engineering services 216,726,240 431,681,983Unit VI construction industry - 375,730,358Compensation for staffworking in Saudi Arabia 110,404,982 5,183,274

Other services 14,486,084 44,942,744

Subtotal 3,554,841,745 4,481,027,169

Operating ExpensesPersonnel expenses 3,357,514,245 3,734,309,585Maintenance and repairs 3,599,322,102 2,340,496,155General expenses 884,707,715 546,992,510Materials and supplies 391,719,442 598,760,160Survey, research & upgrading 472,160,614 1,142,517,087External services 285,907,225 1,020,106,480Depreciation expenses 1,929,104,813 2,264,634,315

Subtotal 10,920,436,156 11,647,816,292

Deducted: Expenses reimbursed byWest Java Provincial Budget 1,568,641,184 1,741,406,474

Total 9,351,794,972 9,906,409,818

Operating Loss (5,796,953,227) (5,425,382,649)

Other Income and ExpensesOther income/gain 193,746,631 16,850,905Other expenses/losses (17,848,030) (3,755,232)

Subtotal 175,898,601 13,095,673

Net Loss (5,621,054,626) (5,412,286,976)

B. POJ Statements of DeficitDeficit, beginning of year (17,830,017,697) (23,408,294,439)Prior year's adjustments 42,777,884 (3,321,606,774)Deficit, beginning of year afteradjustments (17,787,239,813) (26,729,901,213)

Net loss for the year (5,621,054,626) (5,412,286,976)

Deficit Ending of Year (23,408,294,439) (32,142,188,189)

/a Years ended March 31, 1981 and 1982.

ANNEX 2Table 2

- 66

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Sources of O&M Funds of the Irrigation Directorate, POJ

GOI subsidies via Raw water chargesWest Java Province to Jakarta

Fiscal Budgetary Annual Actualyear allocation Salary Total supply payment /b

(Rp million) --- (million m3) (Rp million)

1974/75 447.8 53.2 601.0 87.0 15.0

1975/76 474.0 171.1 645.9 112.0 15.0

1976/77 872.0 264.4 1,136.1 88.0 19.8

1977/78 1,028.0 315.2 1,343.2 92.0 22.7

1978/79 1,152.0 315.2 1,467.2 88.0 26.1

1979/80 1,330.0 315.2 1,645.2 129.0 30.1

1980/81 1,754.0 468.2 2,222.2 115.0 34.6

1981/82 1,850.0 708.0 2,558.0 96.0 39.7

1982/83 2,100.0 1,080.0 3,180.0/a - -

/a This was about 56% of POJ's estimated requirement of Rp 5,667,621,000 or Rp18,600/ha for adequate O&M in 1982/83.

/b Since 1976/77, the rate has been fixed in accordance with the Governor ofJakarta's letter of July 17, 1976, No. 1556/A/K/BKD/76 allowing an annualincrease of 15%.

ANNEX 2Table 3

-67 -

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

PDAM's Income Statement(unit: Rp million)

Reported1981/82 1982/83 1983/84

Operating RevenuesWater sales 8,600 9,310 20,937Connection charges 1,712 3,429 4,016Others 437 983 338

Total Billings 10,749 13,722 25,291

Less: Bad debt - - 5,631

Net 2Oerating Revenues 10,749 13,722 19,660

Operating ExpensesPersonnel 1,946 2,105 2,618Chemicals 886 1,920 2,055Power 1,244 1,761 2,534Raw water - - 47House connection - - -Maintenance 1,217 1,466 1,216Administration 507 709 1,423Sales 1,253 620 830Others - 1,078 1,533

Total Operating Expenses 7,053 9,659 12,256

Operating income before depreciation 3,696 4,063 7,404Less: Depreciation:

Historic cost 1,461 1,731 2,797Revalued cost - - -

Income before interest 2,235 2,332 4,607Less: Interest - - -

Net Income 2,235 2,332 4,607

ANNEX 2Table 4

- 68 -

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

1979 Rates of IPEDA Assessment for Rural Paddy Landby Productivity Class and Landholding Size

IPEDA assessment by size of landholding StandardProductivi- (1) (2) (3) (4) (5) productionty class of (0.5 ha 0.5-1.0 ha 1.0-3.2 ha 3.0-5.0 ha >5.0 ha (HU)paddy land … _ _-- (Rp/m ) ---- (t/ha/yr)

1 2.54 2.96 3.38 3.80 4.22 8.002 2.28 2.66 3.04 3.42 3.80 7.303 2.03 2.37 2.71 3.05 3.38 6.604 1.81 2.12 2.42 2.73 3.03 6.005 1.60 1.87 2.14 2.41 2.68 5.406 1.39 1.63 1.86 2.09 2.33 4.807 1.21 1.42 1.62 1.82 2.02 4.308 1.03 1.21 1.38 1.55 1.71 3.809 0.85 1.00 1.14 1.28 1.43 3.3010 0.68 0.79 0.90 1.02 1.15 2.8011 0.53 0.62 0.71 0.80 0.89 2.4012 0.39 0.40 0.52 0.59 0.65 2.0013 0.28 0.33 0.38 0.43 0.48 1.7014 0.18 0.20 0.23 0.27 0.31 1.4015 0.08 0.09 0.10 0.12 0.14 0.10

Note: These rates are based on a price of paddy of Rp 95/kg.

Source: Directorate of IPEDA, Ministry of Finance.

ANNEX 2Table 5

- 69 -

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Cost Recovery Indexes

Present value at discounted rate10% 12% 15X

Municipal Water SupplyIncremental Costs (Rp billion)

Capital 16.62 15.77 14.64OM&R 7.52 5.99 4.36

Total 24.14 21.76 19.00

Raw Water Charges (Rp billion)Capital 18.45 15.77 12.84OM&R 7.52 5.99 4.36

Total 25.98 21.76 17.20

Cost Recovery Index (Z)Capital 108.00 100.00 90.00ON&R 100.00 100.00 100.00

Average 106.00 100.00 92.00

IrrigationIncremental Costs (Rp billion)Capital 13.87 13.20 12.26OM&R 4.40 3.52 2.42

Total 18.27 16.72 14.88

Incremental Cost per ha (Rp'000)Capital and OM&R 272.69 249.55 222.09

Incremental Charges per ha (Rp'000)IPEDA 25.00 20.00 15.00WUA fees 6.25 5.00 3.71

Total Charges 31.25 25.00 18.71

Cost Recovery Index (%) 11.46 10.02 8.42

ANNEX 2Table 6

- 70-

INDONFSIA

WEST TARUM CANAL IMPROVENENT PROJECT

Price Structure for Agricultural Output(Constant March 1985 currency values)

Operatlon 1985 1986 1990 1995

RlceExport price, Thai 52 broken,FOB Bangkok, US$/ton /a 235 238 346 334

Quality adjustment /b 902 211 214 311 300Freight and lnsurance + 30 30 30 30CIF price, Jakarta - 241 244 341 330Port handling, storage, lonses /c 1 12 12 12 12Transport, port to wholesaler + 3 3 3 3Transport, mill to wholesaler - 2 2 2 2Ex-mill price - 254 257 354 343Conversion to paddy 65S 165 167 230 223Milling cost /d - 6 6 6 6Transport, farm to mill - 10 10 10 10Economlc farw-gate price, USS/ton - 149 151 214 207Economic farm-gate price, Rp/kg /e 164 166 235 227Financial farm-gate price, Rp/kg 165 175 200 218

MaizeExport price, FOB IIS rulf Port,

US$/ton /a 126 121 115 115Freight and insurance 1 20 20 20 20CIF Jakarta If - 146 141 135 135Port handling and storage + 7 7 7 7Transport, port to wholesaler + 3 3 3 3Transport, farm to wholesaler - 10 10 10 10Economic farm-gate price, USS/ton - 146 141 135 135Economic farm-gate price, Rp/kg le 160 155 148 148Financial farw-gate price, Rptk8 113 113 113 113

SoybeanExport price, FOB IIS Gulf Port,uSS/ton /a 265 260 253 249

Freight and insurance, Gulf portto Jakarta + 20 20 20 20

CIF Jakarta - 385 280 273 269Port handling and storage + 7 7 7 7Bagging + 10 10 10 10Transport, port to wholesaler 1 3 3 3 3Transport, farm to wholesaler - 10 10 10 10Economic farm-gate price, USS/ton - 395 290 283 279Economic farm-gate price, Rp/kg /e 435 319 311 307Financial farm-gate price. Rp/kgT7f 400 400 400 400

Ia All world prices are based on Bank projections (Jan. 1q85) adjusted toMarch 1985 constant dollars.

/b Ninety percent of world price based on spot checks and regressions. Seepaper IBRD/AEPIA 1979.

/c Includes port costs, transport to warehouse, spraying and fumigation,unloading, warehouse rents. Losses are 0.52 at unloading and 1.0 at thevarehouse.

/d Net of value of by-products and Includes milling/storage losses Incurredby miller and handling charges.

/e Exchange rate of Up 1,100 - US$1.00.7i Assuming Indonesia Is a net Importer of maize.

ANNEX 2Table 7

INDONESIA

WFST TARUM CANAL IMPROVEMENT PROJFCT

Price Structure for Agricultural Inputs(End-1984 currency values)

Operation 1984 19R6 1990 1Q95

Urea - 462 NWorld export price, FOR Europe,

US$/ton 189 214 255 265Ex-factory price, Palembang /a 204 229 270 2snHandling and distribution to retaillevel, Jatiluhur + 15 15 15 15

Storage and transfer to farm + 5 5 5 5Economic farm-gate price, USSJton - 224 249 2sn 300Economic farmr-gate price, Rp/kg /b 246 274 319 33n(Flaancial farm-gate price, Rp/kgT (90) (110) (150) (2D0)

TSP - 462 P 05World export price, FOR Florida,US$/ton 150 158 173 173

Freight and Insurance to Jakarta + 45 45 45 45Handllng and distribution to retaillevel, Karang Agung + 15 15 15 15

Storage and transfer to farm + 5 5 5 5Economic farr-gate price, UTS$/ton - 215 223 23s 238Economic farm-gate price, Rp/kg /b 236 245 262 262(Financial farm-gate price, Rp/kgT (90) (110) (15n) (2MO)

InsecticidesEconomic farm-gate price, USS/liter 10.0 10.0 10.n 0n.0Economic farm-gate price, Rp/liter /b 11,000 11,000 11,000 11,000(Financial farm-gate price, Rp/liter) (1,500) (1,500) (2,00n) (2,50n)

Rodenticide - Zinc PhosphateEconomic farm-gate price, US5/kg 6.0 6.0 6.0 6.0Economic farm-gate price, Rp/kg /b 6,600 6,600 6,600 6,600(Financial farm-gate price, Rp/kgT (2,300) (2,300) (2,500) (2,50n)

Purchased SeedsRice

Economic farm-gate price, US$/ton 149 151 214 207Economic farm-gate price, Rp/kg /b 164 166 235 227(Financlal farm-gate price, Rv/k 5 (247) (262) (3no) (327)

MbizeEconomic farms-gate price, USS/ton 146 141 135 135Economic farm-gate price, Rp/kg /b 160 155 148 14H(Financial farm-gate price, Rp/kIT

SoybeanEconomic farm-gate price. UISS/ton 395 290 2h3 279Economic farm-gate price, Rp/kg /b 435 319 311 3n7(Financial farm-gatek price, Rp(kg) (17n) (17n) (170) (170)

Unskilled Labor /cEconomic wage, Rp/day 700 700 700 70nFlnancial wage, Rp/day /b 1,000 1,non 1,nnn 1,nnn

/a Urea Is valued ex-PUSRI plant, Palembang. Price projections for bagged urea, FOREurope have been adjusted to Asian markets by adding a transport premium of USS15/ton.

/b Prices are converted at an exchange rate of Rp 1,000 - SSo1.00.7 Shadow wage ratio is estimated at 70X in the project area.

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Sumirary Physical Inputs and Outputs per Hectare for Crops

Wet season paddy Dry season paddy _ Sobeans MaizeUnit P W/O w P W/O w P W/o w P W/O w

Yield ton 3.9 5.0 5.0 3.7 4.8 4.8 0.8 1.1 1.3 '1.2 2.0 2.2

InputsSeed kg 25.0 25.0 25.0 25.0 25.0 25.0 40.0 40.0 40.0 40.0 40.0 40.0Urea kg 125.0 200.0 200.0 150.0 275.0 275.0 - - 25.0 50.0 50.0 80.0TSP kg 50.0 100.0 100.0 75.0 125.0 125.0 25.0 30.0 50.0 25.0 30.0 50.0Pesticide L 1.5 2.0 2.0 2.0 3.0 3.0 1.0 2.0 3.0 0.5 1.0 1.0Rodenticide kg 1.0 1.0 1.0 2.0 2.0 2.0 - - - - - -Animal days day 12.0 12.0 12.0 8.0 12.0 12.0 2.0 2.0 2.0 - - -Miscellaneous unit 1.5 3.0 3.0 3.0 4.0 4.0 2.0 2.0 3.0 2.0 3.0 4.0

LaborJanuary dlay 25.0 27.0 27.0 - - - - - - - - -February day 25.0 28.0 28.0 - - - - - - - - -

March day 18.0 20.0 20.0 47.0 47.0 47.0 - - - - - -

April day - - - 48.0 48.0 48.0 - - - - - -

May day - - - 31.0 33.0 33.0 - - - - - -

June day - - - 450 48.0 48.0 - - - - - -July da) - - - 17.0 20.0 20.0 25.0 25.0 25.0 .25.0 25.0 25.0August day - - - - - - 32.0 35.0 38.0 30.0 35.0 38.0September day 43.0 43.0 43.0 - - - 38.0 38.0 40.0 38.0 40.0 40.0October day 48.0 48.0 48.0 - - - - - - - - -November day 32.0 32.0 32.0 - - - - - - - - -December day - - - - - - - - - - - -

Total 191.0 198.0 198.0 188.0 196.0 196.0 95.0 98.0 103.0 93.0 100.0 103.0 a1

Note: P - present; v/o - future without project; v w future with project.

MN'j fwit T~RAT Wf-I -"u o-o iwsl ggg 6g-g 'I toni 9111 Iii 6'c W r W Wiu 7'iT u T~i ro~i UiTWC i op.w 09. Igiul- iI-fo

~~ -- - - - - - 991~~~~~~~~~~~tl' 991'l t91*l 9,161 111lc mge uM's III's Ville gi'gl title III's 6,06 61'1 *l'p-*U co, s.-1 - n- 't nl'- -l' n- - sl get gill nill' gl1 ng uilt 116'1 gill e Ii gel gt Hint San% 111 *198 we, J011qh 1- - - - - - - *1t igz *1l 169 N 11 11 lisll' * s,gg m 1 g ggg svg nl us aua. *'-' coo "r ee *@ ^

U t 119 Ill Ill - - - 9f en 9en o9K 91 91 911 i iini W e Iiil K ill ll Ii 9191-m 000. 1 6o e61

1999 He sit It - - - oIL'I oti'S oGsi' ,nl ill I6 1 M ii1'1 mllstill6 will' IVl Its lot *"&P-mmsoo@. 1

I9 9 I 1 Ott - - - Its's lil'l OWe'i 0191 Ml l 99'l Mot 0 g91 i'S @191 o i 09'S 11"'I 911' 16141 89*0- WO. sowlii 936 @09 - - - - 9it t §Cii e 066 ee9 tg e 'i me igan' 009'g eo t' eg t en'6 9@l ma' lgi' r tot t-9 @00. *51

n4; 6 Sle e n -"' 0-1 -69 -to 61.g' flr' 0ng w61 09 0tet' logo' it l llg eob g en 00 e o ggwt ten'sF@ee tIlL Ill sio - - - - *@'16 9 t 1 9 lI lt 0111 6191 6191r 019'C 019el 9%911 StI'l 1116 sI *,-, s "ooga- - - - - - ggg'g e gag 1g' ggu' gig'. iggi ee1 9{g'i gig's ggg' 1 s av' u"1 lg 1 o' *Lu.w l wtOO g- - - - - - - 1 1 ^ 1 sgN'g es gg'a Ig'l Ml66 l 0 1 0gs 6s e'1 0- 1 oo l gIK'l ij'i 09'1 *l'"to MO,se

ON oil a l - - - oi @01 Hi oIl e n n of of e 09 0 Do of nh 900. viva FastOgg at ea a - - - en9 en 111 mR of ee ml o0l 0L1 eno OSI 0o n i no. f*@mSg Foss9 0 e l - - - - n I InI 91 i g 11 11 1ll UI'S 9'1 '1 t's I g'" I 1 11 st'il *11 1 m*99 e 5,IsE "I " it - - - We its In 199 [it got LI [it 159 ti tit 1il [l I -VIni11II11I91 91 01 - - 56 iog Set Ill zl tit "11 lot got Lot igi tit M1 913 el Moa.t1 is @ -i - - - fit Iti 11 la mI 1 l ll la gi1 111 "I Si nl 69 0o0 e Islg114 gig's Dull o0 - - - talii tn I 0S161 0ost se1el mg 1169 0s1igi 01l 0 1i Ui l' SOI *lg'g el oce. d '133 sariSOt's 0a's Oei'l in - -- * 09g1 0iK',ll Ot'W" Iiiel' Ki'iS Moolt g9'tl 0ol 'l iKl"l 01l'l 061'l 0S1161 1111 6eot1 IN. ,* toss 9 i*Iilllsit S e t l - - - - 011g S1 Olil 1l gig's 11 0161 es 6ll, sill S s1 1 l gig's 01 e SIl SIll e 6oo11 . 000.I"Ir via1et ~ ~ ~ ~ eu s" s1s 1 sg s s tX t tst t s t' * weoX.,; Rh"

ii L I~ ~ ~ I - - I i 1 1 I I I 9 OF I9 9 1 1so 1 uiODOOusI 11 11 I s - - - IIt I 1 6 I a I 1 1 1 1 1 I I beO$O@ *coo.is It 19 - - - - I 1169 on 10 9t %19 lit gi "1 1tt 01 £to s9 i e 0Oo. 090 6

usuImped uli~

in: in:~Tr -r-n -1 Ti-: ITI Tir irt ri- -IT rr- riT iTI- irg y- rr I- irr- uri- - rr TII wW0.T *X1- n1- nl-W1- 1- - 1- I- I 1 9 1 m m m 1 *1f I 1 1 I 1 si 000. SJwj

1- 1- 1- 9- 9- 1- 11 i i I * t C I t I t t C I I 000o. yefis604- 01- ~01- q- 6- 69- 19- 19 to 01 of it 99 19 01 Os @1 01 69 of i9 '9000. fl a

o9- LS- is- e1- n1- 1t- 1- to t9 9 e s 19 t9 9O 19 1o Is o9 19 99 VI ' M Ion

699 6598 t'1Z 469 - - - I'911 1111g 1'101 geg, 9'L1 91(Z {-z@1 1.5gm rts 1 1 s1-1 1-lSI g-ui g-1s1 1.111 1 18109 1 6,14*31

iiltil 161, ooi 16 6199 Isls g lrn " on 61111911 16106 06111 16191 It1iS 1Still 99119 S1l29l 11 101 0&111 S6196 66156 1l/9g 95/16 lima (I( *sw * I liti

t ~ ~~~~~~~~~~~~~~~um~e mamiat puo1 m.ImeZ **taiN -16116 on-es L d.90 -1- *por'a ff soft AaM

Ism~~~~~~~~~~~~~~~~~~~~~~~~~

*a~~11|@ *IU O i

£

INDONESIA

WESt TA*IUR CAUSAL IP1OVENXT PROJECT

far. LtAbor Availlablilty, Requirement and Uhploywment

January Tesbary March April nsa Jure July Augumt September Octobet Novmb r Deember Total

Labor Availablerer tArs n nrs-day) /a O.00 50.n 5 0. CA 50.0') 50.00 50.00 50.00 50.00 50.00 50.00 50.00 S0.00 600.00Project crea ( X000 Wm-day) lb 5,58.00 5,5189.00) 5,564.00 %,58.00 5,583.00 5,588.00 5,514.00 5O,58.00 S,584.00 S,584.00 5,5U8.00 5,583.00 67,05.00

SLtl Farm (0.1 ha)

Tr-et 1- FIT 7. 5r, 7.50 16.10 9.40 6.20 9.00 l.90 0.62 0.76 12.90 14.40 9.60 94.75Without project 6.10 4.40 13.13 10.56 7.26 10.56 5.13 I5OS 1.16 12O. 14.40 9.60 105.43Wlth project 8.1) 8.40 20.10 14.40 9.90 14.40 t.00 3.04 3.20 12.90 14.40 9.60 124.44

-friirnt 42.50 42.50 35.20 40.40 43.80 41.00 46.10 49.36 49.24 37.10 35.60 40.40 503.22Without project 41.90 41.60 31.46 39.44 42.14 39.44 44.85 44.95 46.t 37.10 35.60 40.40 494.52With proJect 41.90 41. 0 29.90 31.30 35.40 40.40 35.40 41.10 35.40 42.00 46.46 46.30 473.56

Aversis F4ro (0.5 ha)

_t, rt (I 19.0O 1900 39.06 25.92 14.14 24.30 9.93 0.92 1.34 32.68 36.43 24.32 249.49without project 21.60 22.40 41.73 21.32 19.47 21.32 13.05 .75 13.94 34.40 33.40 2S.60 273.UWith proJect 21.40 22.40 53.40 31.40 24.40 38.40 21.25 7.98 3.40 34.40 38.40 25.40 336.83

surp!: l iHrd)_Prreent 11.-' 11.00 10.94 24.01 33.12 25.70 40.07 49.08 43.36 17.32 13.M2 25.S 350.53 eWithout project 26.4U 27.40 4.21 21.68 30.S3 21.48 36.95 48.25 48.06 15.60 11.60 24.40 321.02WitSt Pril. l? 20k.&f 21.40 (3.40) 11.60 21.40 11.40 2A.15 42.0? 41.60 15.60 113.0 24.40 266.77

LArto 4ro 11.S hd)

F_-a-~ rnt 33.15 13.7S 71.30 43.00 31.00 4S.00 3.105 2.36 2.66 S8.05 64.30 43.20 452.42Without project 40.50 14.00 31.11 54.24 31.29 54.24 25.10 3.50 3.18 64.50 72.00 4U.00 523.36With project 40.50 42.00 100.SO 72.00 49.50 72.00 39.75 14.32 35.40 44.50 72.00 43.00 631.17

purplu e4)srre :ent 16.25 16.25 (21.30) 2.00 19.00 5.00 31.25 47.64 41.34 (3.05) (14.30) 4.04 191.73Without project 9.50 6.00 (31.11) (4.24) 12.71 (4.24) 24.90 44.50 46.12 (34.50) (22.00) 2.00 149.73With project 9.50 3.00 (50.50) (22.00) O.SO (22.00) 10.25 35.10 34.40 (14.50) (22.00) 2.00 9.23

Proloct Are o('00n mn-daye)

Pr I i 1l,400.00 1,600.00 3,212.64 2,165.74 1,398.12 2,030.40 442.04 92.00 114.00 2,752.00 3,072.00 2,04. 00 20,937.56Without proJect 1SW09.0) 1,16.3 00 I,690.00 2,400.00 1,650.00 2,400.00 1,125.00 175.00 194.00 2,381.00 1,21S.00 2,344.00 23.560.0W

With project 1 ,609.00 1,676.0l0 ,48.0oO 15216.00 2,231.00 3,216.00 1,790.0 334.00 720.00 2,5U81.00 3.214.00 2,144.00 28,252.00Olterance - - S19.00 416.00 1. 00 914.00 465.00 509.00 526.00 - - - 4,692.00

Surplust *c-treient- 1 ,94.n9 W .9U.00 2,115S.36 3,422.24 4,119.28 3,551.60 4,145 .16 5 496.00 5,474.00 2,436.00 2,536.00 3,540.00 46,068.44Without project 3,119.00 1,112.00 1.39.00 3.134.00 3,934.00 3,3U3.00 4,4U3.00 5W,43.00 S,394.00 2,707.00 2,372.f0O 3,444.00 43,496.00With project 3,119.0no 31.Z no 1,099.00 2,372.00 3,311.00 2372.00 3,19.00 4,904.00 4,S6.00 2.707.00 2,172.00 3,444.00 38,4 W.00Sifferrence - 7 U9.00 816.00 5631.00 3I.00 165.00 59.00 524".00 - - - 4,U92200

d uused on two wrkere Io a l4re household with five petrot.jOsed on 1I,t1 ( lrunurhaoide eacludial larwiless laborers In the ro*ect area.1 4re surpius labor is partly used o off-fare wrgimal ectiites sad the reidloedr Is amemployed.

A1.25 2Sbl.I I

- 75 -

101IMIA

WES TARS CM"U. KIOVENET PDOJUr

0.3 ha farm 0.6 ha farm 1.5 ha taroP- /woa P /WO v /OW v

Crmu Ao"a (ba)Vat *oao rice 0.30 0.30 0.30 0.76 0.80 0.50 1.35 1.50 1.50Dry *.ooa ric 0.20 0.22 0.30 0.54 0.10 0.50 1.10 1.13 1.50Corn 0.01 0.01 0.03 0.02 0.02 0.06 0.04 0,04 0.15Soybeans 0.01 0.02 0.05 0.01 0.03 0.13 0.03 0.06 0.24

Totel Cropied Aroma 0.52 0.55 O." 1.33 1.45 1.a1 2.42 2.73 3.39

roEm,a Intensity (1) 173 183 227 1S6 e1i 226 161 182 226

Crobad PrXtjo- (too)Uicc drY paddy) 1.91 2.56 2.94 4.9 6." 7.54 8.97 12.72 14.70Corn 0.01 0.04 0.00 02 0.04 0.18 0.05 0.05 0.33Soybeans 0.01 0.02 0.07 0.01 0.03 0.17 0.02 0.07 1.31

narm Income 6 Cogts (Cp'000)Grooo valu of productlon 338.5 548.3 674.4 574.3 1.507.1 1.796.6 1,353.9 2.852.9 3.3"6.7Productio, cost 37.1 68.7 82.8 95.7 153.6 220.7 173.3 340.1 413.7Nirod labor - 3.6 44.2 75.1 131.0not value of productlon 301.7 499.6 591.1 778.6 1.323.5 1,572.3 1,366.4 2,425.0 2,822.0

Other lcomes /b 105.0 105.0 105.0 *0.0 40.0 40.0 15.0 IS.0 15.0

Total frm kuily Incomes 406.7 604.6 696.6 818.6 1,363.5 1612.3 1,31.4 2,443.7 2.837,0

Tae.ad Otbor Pa tTexas e*an cotriMTlo c 15.6 25.2 27.0 41.5 67.2 72.0 30.8 136.5 146.0Paymt to landower Id 150.5 249.6 295.6 389.3 661.5 766.2 683.2 1,214.4 1.411.0

Oaer-or tor-L 391.1 579.4 669.6 776.8 1.296.3 1.540.3 1.300.6 2,307.2 2,691.0Umrecropper .LL 255.0 345.6 400.5 429.3 701.8 826.2 695.2 1.229.4 1,426.0

Per Capitt Inco_ aowner-operator 76.2 115.5 133.9 155.4 259.3 305.1 260.1 461.4 535.2isrceropper 51.17 70.9 80.2 65.9 140.4 165.2 139.6 245.8 285.2

/a Ieludiln cost of family labor.

lb Lncludlg lIvestodt, _1all business and wage Income eatsated by sleool.

te Includlng 1M . villae taes (about 200 kg pdy/ha) and ttr fees.

d About S01 of net value of productlon will be pad by sharecroppers.

to Total farm famlty Incomee mnu tam psy_nt.

f Total farm fdmly Incomes omine. paymt to landowner.

,L Averae family he. about 5 mmber.

INEORIIA

WA?T TAR CH lAL M..."os VIOlT

Tcomale brOUllr lo Ktnhatlo(Pp ulIlOn) ato

Ccr Tu pa ltrotect with *f@Jtct «rsa- lnlSt~~~~~~~~~~~99/2- 1995190- IU9Ii92- 1993i90- 390I50lt- 3993/9l2 199S/f-

(APitL t-Hareb 32illrl9/04 95/U 1 1890 7/S llU/JJ lOAAB n 1919/90 29 II15I4/ 211t115 111/514 SIL9/37 1907/U1 1JU/S9 1199ItU 19*1/91 1914/91 2114/IS IU7/UA 1911/14 11919/90 19*0/91 1914/91 2114/15

Katl prodoctlaoSIce paddy ,140 72,217 71 ,090 03,349 99U0 1S1, 1 21 "9I" ',117 1 0 1U2 I." 154 301l io,oa - - 7138 17,97 191A 0 12

Soybean 253 10 700 957 1 053 1 024 1 020 1 013 213 SIC 74I 2 ,75 , 11 4,00 441 4,390 - 790 2,241 *2 321 30 37

Coca 372 272 312 463 620 592 192 592 172 172 172 744 1,1 4 1.026 2,279 2279 - 279 700 1,034 13,6; I,08

SubttatlaJlo Prod. 49.719 71A39 70.220 00.071 n ,740 211.219 314,701 112.0 49,74 7309 1 71.0s 2 3.0 10.021 ot lS 13.011 161.02 10 I. 0?I4 J0.0.7 10?41 2. 415 24.24 21.01 1 7

Crose asrlS ofre uelto 49,714 73,019 71,22* 14,412 90,740 132,216 133,743 132,130 49,114 13,019 10,225 01,7002 100,495 15,053 161,082 115,110 1,077 10,147 22,435 20,214 23,531

tlaro 09.?74 71.039 71.225 14U,71 90.748 111.21U 135.7tl 112.1.0 9,.216 72.019 1 .221 8.tu1 6 11.0J3 1551.51 141.020 I1S7152 1.071 10.147 223U42 24U, 213.7

Outflows

Ie* Ie I 415 401 471 008 4*4 601 001 "A4 02 401 473 414 s21 III 147 760 - - 02 300 1300

rortliIeur, vra. 4,014 4,144 4,41 1,007 7,001 5,093 * ,691 01,193 4,074 4,104 4,2421 1,139 0,31 10,108 10,019 10,770 - 71 4 12,475 1,20 3,705

rortilIear, TSr ,3 ,4 1.121 3,1 ,11 342 1432 1,41 1,431 2,660 2121 323 146 4,3 4,201 4,381 - 1 437 711 733 132Pecstie 1,082 1,92 t,94 2,20 2,920 2, 20 23, 2 2,0 3,002 1,92 7 , 71 3,2 1,130 3130 3,11 * 300 son 43o 030 130

rodestiatde 923 942 912 2,002 1,002 3,002 3,002 ,0I 923 902 92 3,002 2,222 3,204 13,208 3,20 - - 120 20 204 204 ;

Nltcollaoomut 237 244 is1 431 411 is3 411 3 237 204 203 420 402 122 530 310 - I1 04 3n 357 331r

4n1mo1-da~o 1,932 4,03 4,324 4.924 4,914 4,914 4,934 4,934 31,13 4,0 4,119 4,914 1,034 51,20 5,0 2,020 - - 420 134 714 714

Iaeduoybaao 331 24 19 19 38 31 37 17 33 24 34 u4 302 331 217 313 - 24 44 0oo 300 95

5 r tcaer 32 12 12 12 32 132 I 11 12 12 12 19 is 30 01 41 - 4 32 Is 30 30

IobtoIaI epatas 13.310 31.437 21 .31 20.443 204221 22,113 11411 22341 1U.100 13.41 13,U3.0 112.702 22.91 20.ru7 20.4014 21.014 = 1_1 2 533 S4l4 A573 4.410

.larAry 1,220 I,210 1,155 1,166 13,260 1,246 21,4 3,21 2,120 1,134 1,133 1,24 13,20 2,204 3,200 2,204 - - _ _ _ _

Tebnarr 13120 t 133 3,333 3,323 t311 3,331 213 3,331 3,320 2, 10 3 *11 3 ,N13 2 11 3larch 2,293 2,112 2,433 2,191 2, 3, 2,90 2,1 2,292 3,12 243 ,0 2,9 ,32 24 , 342 - - 329 119 5139 33

April I31 2,114 131,3 1 3,400 1,40 0 9,0 ,0 2,400 33524 1,14 2,43 , 2i tO ,024 2,2 2,5 2,1 it - 220 33 1 37

ray 979 990 2,042 3,313 3,113 2,233 3,211 2,233 919 998 3,042 3,313 X1,39* 3,14 3 3,4 2, 14 - - 221 39 3 293 393

Jue 3,423 13,409 2,123 3,60 2 2,19 3,600 3,680 2,1000 2,02 1 I4A1 1,122 13,00 2,014 2,213 2,252 2,2S1 3 - 23 312 12 -1

Juty 189 037 059 1I01 140 700 1fWI "4 I S1 10 1 50141 I00 3,23 3, 23 lS1 2, 21 - 23 464

Augult 14 III 309 21 121 123 I23 323 64 97 309 223 339 020 479 419 - 90 791 301 318 354

September so 306 233 131 36216 6 334 22 33 so 304 1311 324 114 443 30.4 104 - U 200 132 148 148

oetober 13,924 1,937 3,7 2,027 2.021 2,031 2,017 2 701? 31926 3,937 3,197 2,017 2,017 7,031 2,037 2,701 _ 5 - - - -

Novemhr 2,330 24X,2154 24 2,2 2,2131 2,213 2,211 2.2s23 I 2,210 2,214 2,2. 2,733 2,051 2,2 2,21* 2,23 - S -7 - -

Oecm%S s116f1 1. *.X 4.7 *.So *^.g1 *^*01 1§.50 I'm7 ll.43 *f.4$6 *.47 *.| 1, .11 *z.sn So.l I S.ol .l sX 1 @ 1

Decee1

.r 5~~~~~~,434 1,454 203 233 333 313 313 ,0 ,3 ,3 ,1 ,0 3,13 ,3013101 233

Subt Ita liedlobe, 34.092 23.001 33.41m 30.492 20.492 3.492 26.,492 36.492 14.691 31.007 31.473 30.125 34.201 29.632 39.14 39.710z 2331 3.993 3.2401 1.204 3.214

i*i*lJaiii 27.413 29.443 ~~~~~~19.07 10.93 36.935 13.002 10.602 107319 71.7 294.44 29.307 217461 4.1153 00.199 44.440 4.9 3 4.4(2 7.14 7.1937 7.912

it_______ 41 902 £4L43 49.92 4,13* 533791 t.6346033 912 43.003 0&,031 40.92. 411.2131 39.S4A0 109.50 3341401 300.921 74 .4 14.630 34.427 31.471

(009 Stilton) 14.09 40.30 49.01 43.18 4A.90 004.03 39.22 04,71 30.00 40,34 44,47 41.09 34.32 99.30 304,31 99.02 - 0.13 1.22 11.09 20.93 34.23

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- 78 -ANNEX 2Table 14

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Levels and Resvonsible Agencies forM&E of Ilirrigation ProJects

Levels Major activities and functions Responsible agency

A. Monitoring project works during Executing agencyconstruction (physical and (PROSIJAT/POJ)financial progress)

B. Monitoring O&M facilities and OLM agencywater management (Irrig/POJ)

C-. M&E of land use and crop Agriculture extension &production OUM agencies (POJ/Ag. Ext.)

D. MLE of agricultural marketing and DPP/DGWRD assisted byfarm income universit- groups

E. Evaluation of socioeconomic DPP/DG=RD assisted byobjectives of project university groups

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJ.

Organization Chart of Jatiluhur Authority

mN KN t TU3R

0 ,

P U a L I C W O R C A

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J.OUfd JNHAOMIdI 1vNva IrnuYi iSam

VI SMNOUNI

ANNEX 4Pagel of 3

- 81 -

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

SUMMARY TERMS OF REFERENCE FOR CONSULTING SERVICES

1. Land Remapping for Taxation (IPEDA)

1.1 Scope. The scope of these services is to update existing cadastralmaps and records of land holdings within an area of approximately 300,000 hagross) of irrigated rice lands in the Jatiluhur Project Area (North, East andWest Tarum).

1.2 !echod. Existing cadastral maps of Jatiluhur's irrigated rice landswill be upgraded by new aerial photographs to a scale of 1:10,000, new 1:5000rectified photomaps, 1:2,500 line maps, showing all paddy holdings. Groundcontrol surveys will be carried out to establish land holding boundaries. Allland holdings will be identified on line maps, listed, and sizes calculatedfrom coordinates. Lists will also indicate names of owners and farm operators.

2. rmplementation Management and O&M

2.1 General Scope of Services. Services under these TOR shallinclude: (i) assistance in pre-construction and construction managementphases of enlarging and improving the WTC, its structures and constructing thepipeline to Pulogadung; (ii) in assisting and training staff in adequatemaintenance of the WTC, in scheduling and adjusting the operation ofJatiluhur's irrigation systems, and in protection of the Jatiluhur dam.

2.2 Preconstruction Activities. Consultants shall provide assitance inprequalification of bidders, in advertizing bids, in bid evaluation and inrecommending award of contract.

2.3 Construction Management. Consultants shall provide assistance to,and and train 3taff in: planning and scheduling; quantity and qualitysurveys; recording progress; authorization of progress payments and changeorders; quality tests; guidance to contractors in pre-comfissioning andacceptance tests, including hydraulic capacity tests of canal segments andstructures and of electrical and mechanical plant; preparation of monthly,quarterly and completion reports, and preparation of as built drawings.

2.4 Maintenance of the WTC. Consultants shall provide guidance andtraining of POJ's WTC O&M staff (all directly assigned staff to the WTC and upto 20 staff from POJ's other O&M offices) in scheduling, planning andexecuting adequate maintenance of the WTC and of its structures with aspecific objective of maintaining the system's "improved" capacity at alltimes. Particular emphasis is to be given in this assignment to uninterruptedwater supply (of agreed discharges and water quality) to Jakarta. The assign-ment will include staff training in preventive maintenance activities; inselecting and procuring appropriate equipment for the continuous maintenanceof desilting basins and canal reaches; in programming maintenance schedules

ANNEX 4.- 82 - Page2 of 3

and procedures of the canaL Curug's pumping plant; and in preparing manpower,equipment requirements and budgets.

2.5 Operation of Jatiluhur's Irrigation Systems. The objective of thisassignment is to achieve an optimal use of Jatiluhur's regulated and unregu-lated water resources in meeting irrigation and M&I water demands. Specific-ally this shall include upgrading of existing operacion procedures atJatiluhur's three operation suocenters (one at West Tarum one at North and oneat East Tarum) and an operation center at Curug to achieve quicker responsesand water savings through adjustments in water releases to va:ying hvdrologicconditions. Consultants snall: (i) model JatiLuhur's systems, forecast riverflows and program optimal daily releases for irrigation and M&I uses: tii)provide assistance in procuring necessary hardware and prepare software forthe three operation subcenters and the nain operation center (at Curug); and(iii) train POJ staff in data collection, analysis, operation of the modeL andin appropriately adjusting releases into conveyance and distribution systems.

2.6 Protection of Jatiluhur Dam. The objective of this assignment is toimprove the protection of Jatiluhur dam by upgraded safety equipment and byinstitutional strengthening. Consultants shall: Ci) review the need and thecondition of existing safety equipment, including piezometers, settlementgauges and deflectometers at the dam, at the spillway tower and power plant;(ii) assess replacement (and/or repair) requirements; (iii) prepare specifica-tions for repair work and procurement or replacements; (iv) assess currentrecording and interpretation procedures, propose modifications and, uponreceiving clearance from the owner and the Bank, implement modified proce-dures; (v) train staff in data collection, collation and analysis; and (vi)specify channels of communications for routine and emergency procedures.

3. Design

3.1 Detailed Design of the Pejompongan Pipeline. Services to berendered under these TOR shall include detaiL design of a pressure pipelinefrom the WTC to the Pejompongan treatment plant, of an inlet structure,prechlorination facilities, a pumping plant and appurtenances as shown on thedefinitive plans. For reasons of economy, the pipeline will start initiallyat (about) km 67 + 900, but in the future it may be necessary to relocate thestarting point to (about) km 62 + 360 for the protection of water quality.Design will have to provide for this possibiLity. Consultants shall: (i)survey, stake out and finalize the alignment and prepare all necessary docu-mentation for the acquisition of rights-of way; (ii) investigate in detail andtest soil mechanic characteristics, and groundwater conditions (levels andquality); (iii) finalize hydraulic and structural design of the pipeline, itsappurtenant structures and prepare detailed (1:1000) plans and profiles of thepipeline and detailed (1:50, 1:100) drawings of all structures; (iv) prepare adetailed, costed O&M plan of the pipeline, prechlorination facilities, pumpingplant and ancillaries, disposal sites and procedures of handling wastes,procedures for water quality monitoring and remedial measures; (v) prepareprequalificat-ion documents for civil and M&E works, bills of quantities,engineering estimates and contract documents, allowing for bidding foralternative designs and clearly spelling out any construction constraintsimposed by the City of Jakarta (DKI authorities) or by any of its utilities.

ANNEX 4

- 83 - Page 3 of 3

3.2 Canal #1 (Tarum Jaya Canal). Under these terms, consultants willassist POJ in preparing detail design of Canal #1, (Tarum Jaya), based on aleast cost solution. The canal will be designed for 40 cms, comnence at WTC'sheadworks, at Curug, follow an alignment parallel to the WTC for an approxi-mate distance of 52 km, and terminare about 2 km east of the Bekasi Riverwhere a new treatment pLant will be built. (Design of this plant is notincluded under these TOR). Consultants will: (i) finalize, survey, and stakeout the canal's final alignment; (ii) scudy the feasibility of lining (eitherrigid or flexible Lining); (iii) determine and specify the operational require-ments of the svstem and their implications on structural and operationaLcontrols (e.g. interconnections with the WTC, hardware, software, for dis-charge control. quantity and quality monitors, etc.); (iv) determine andspecify viable maintenance procedures, their implicacions on che design of thesystem, and quantify aLl requisite maintenance equipment (and software),manpower and budgets; (v) finalize hydraulic and structural design of thecanal, including its headworks, terminal, crossing scructures, operationalcontrols, operational software, monitoring system, and prepare detail design,drawings, technical specifications and an O&M manual.

4. Water Quality Protection

4.1 The objective of consulting services under these TOR is to establishviable plans to protect the quality of raw water supplied to Jakarta by theWest Tarum canal, and that to be supplied by future Canal #1 (the Tarum Jayacanal). Towards this objective, consultants shall (i) identify potentialsources of pollution along the alignment of the WTC, Canal #1, and the tribu-tary rivers (particularly the Bekasi, Cikarang and Cibeet) and classify themin accordance with the type of pollution (human, agricultural, industrial) andits expected impact on the effectiveness and cost of water treatment inJakarta's plants; (ii) study alternative protection plans, analyzing andassessing advantages, disadvantages, expected socio-economic and legislativeimpact; and (iii) develop technically, economically and socially viable shortterm and long term plans duly considering cost effectiveness, and the need toprovide alternative water supply and sanitation to the population along thewatercourses.

4.2 Analyses of all alternative plans, prepared in accordance with para.4.1 above, on suitable (1:50,000 scale) maps, and an accompanying narrative,shall be submitted for review and comments within 8 months after commencingwork under these TOR. Consultants will accomodate any comments given in thereview in preparing recommended plans.

4.3 Consultants shall prepare plans and cost estimates for a waterquality monitoring program, specifying data recording and interpretationmechanism, and a detail plan of preventive and emergency actions to safeguardwater quality.

- 84 - ANNEX 5

INDONESIA

WEST TARUM CANAL IMPROVEMENT PROJECT

Selected Documents and Data Availa;ble in Project File

A. General reports and studies on agricultural sector

A.1 Indonesia: "Policy Options and Strategies for Major Food Crops,"World Bank Document, Report 'o. 36866-IND.

A.2 V.V.B. Rao: "Poverty in Indonesia, 1970-1980," January 1984.

B. Reports and studies related to the prolect

B.1 Coyne et Bellier/Sogreah: "Cisadane-Jakarta-Cibeet Water ResourcesDevelopment Plan," January 1979.

B.2 NEDECO/Virama Karya: "West Tarum Canal Enlargement Project, DraftDefinitive Plan," four volumes, January 1984.

B.3 NEDECO/Sir Alexander Gibb & Partners: "Study of Cibeet IrrigationFlood Control and Water Supply - Feasibility Report," 10 volumes,March 1983.

B.4 NEDECO/Virama Karya: "West Tarum Canal Improvement Project - RawWater Quality Protection and Transmission Facilities for JakartaWater Supply; Feasibility Study," November 1984, two volumes.

8.5 JICA: "Jakarta *Water Supply Development Project - Master Plan,"December 1984, th,se volumes.

B.6 Hans Kartikattadi & Co.: POJ's Report on Examination of FinancialStatements, year ended March 31, 1982.

B.7 JICA: "Interim Financial Review for Jakarta Water SupplyDevelopment Project," July 1984.

B.8 Farm sizes and land ownership in the Bekasi District; a tablesupplied by Agricultural Extension Service.

B.9 IPEDA Assessment in Bekasi District, 1980-1984.

B.10 Working paper: Current Practice and Possible Improvement of IPEDA(Land Tax).

IBRD 18504

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__~~ ~~ PinndTratet la

_sSW__* _m.; Treatent Plant

030JATUM. Canal

b~~~~~~~te .IatlUhr Srzvice rea \

0~~~~ E's.ngD1''n:R;rv,* Da - n Reeroi UnderP'4ft'ngS Con' 'r'urt,,

Swamo;~ ~ ~ ~ ~ ~ ~~~~~~~Prwkt

r2 t"V( )e rs

INiDONESI A Ci { }ur>

WEST TARUM ' SumenfCANAL IMPROVEMENT PROJECT BAN 8NDG

PROJECT AREA 'c,uz -- Canal Enargervent

l o Provncied Ppelind aw

* Plannecd Treatment Plonts

* -m stini lTreatment Plants

Me N Canal%

--- S-con. ry Canal%vV6TC: Service Area.

Other 0atiluhur ServiCe Area 1vS-tt5

E-st.ng Darrm *nd ReservorV;

J, Danm and Reseurvoir Urlder Consiruction Swvamps S: tr

Roads* r.- - - Railwayvs _|

Rivers JAnd _A- - - Provincial BoQundaries__

KILOMETERS 0 10 20 3.0 40

MILES 0 r 10 S 20 25

F EBRUiARY 1985

IBRD 18505ttzro 10;'56fi' t(ALIMANA

INDONESIA -uT

WEST TARUM CANAL IMPROVEMENT PROJECT TEPA

Raw Water and Flushing Supply from the W.T.C.

EXOTING PUOCUED MASUit

I WATER TREATMENT PLANTS JAWA

* e * *t-4...... 4 .... -- ,.. SUPPLY OF FLUSHING WATER (cms)

._ _- .CANALS

_ . .b _ *. *4 pPIPELINES

CANALS TO BE ENLARGED UNDER THE PROJECT

| WEIRS

ROADS

I I -- D RAILWAYS -

RIVERS

PROVINCIAL BOUNDARIES

Q = DISCHARGECMS9 = CUBIC METERS/SECOND

or lo Cihnc.ng- r0 Tran1ung 2'

DKI JAKARTA - .

ti , Pad _qln / p S -

P--OMPONG/NPULOGADUNGTRET MT P T I/TREATMENT PLANT

& o \ 5 R\Output Rpqu.>ld Inpu-lI ..,, \ \ I C!9-. 1D 11 -,,2,

4 % \ \ \ _~~~~~~~~~~~~~~~~~~4.0 4 4 (1987)

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YiN -Jo ~ Boqo' to Bogor

FEBRUARY 1985