Document of The World Bank...Bodri Kuto) In 3 basins the Balai PSDAs plan basin operations and...
Transcript of Document of The World Bank...Bodri Kuto) In 3 basins the Balai PSDAs plan basin operations and...
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Document of
The World Bank
Report No: ICR00001861
IMPLEMENTATION COMPLETION AND RESULTS REPORT
(IBRD-47110, IBRD-77570, IDA-38070, TF-52124, TF55997)
ON A
LOAN/CREDIT/GRANT
IN THE AMOUNT OF US$45.0 MILLION (LOAN), SDR17.9 MILLION
(CREDIT), US$14.0 MILLION (GOVERNMENT OF NETHERLANDS GRANT)
AND EURO 9.5 MILLION (EC GRANT) RESPECTIVELY
TO
THE REPUBLIC OF INDONESIA
FOR A
WATER RESOURCES AND IRRIGATION SECTOR MANAGEMENT PROGRAM
PHASE I PROJECT AND
NUSA TENGGARA BARAT WATER RESOURCE MANAGEMENT PROJECT
March 30, 2012
Indonesia Sustainable Development Unit
Sustainable Development Department
East Asia and Pacific Region
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CURRENCY EQUIVALENTS
(Exchange Rate Effective December 31, 2011)
Currency Unit = Indonesian Rupiah
IDR = US$0.00011236
US$* = IDR 8,900 *All $ in this document refer to US currency unless otherwise noted.
GOI FISCAL YEAR
January 1 – December 31
ABBREVIATIONS AND ACRONYMS
ADB
AMDAL
APBD(K)
APBD(P)
APBN
APL
AWP
Balai PSDA
Bangda
Bapedalda
Asian Development Bank
Full Environmental Assessment
Kabupaten Government Budget
Provincial Government Budget
Central Government Budget
Adaptable Program Loan
Annual Work Plan
Provincial River Basin Management Organization
DG Regional Development, MoHA
Local Environmental Management Office
Bappeda
Bappenas
B (B)WS
BPKP
BWRC
BWRM
BWRMP
CAS
CDD
CDP
CDMU
CPS
CSO
DA
DAS
DGWR
DGAIF
Dinas Pertanian
Dinas PUP
Dinas SDA
DPRD
DSC
EMP
FMR
GOI
GP3A/IP3A
IAIP
IBRD
ICR
IFR
IMEU
IMF
JBIC
JIWMP
Kabupaten
Local Government Development Planning Board
National Development Planning Board
National River Basin Management Organization
Central Government Audit Agency
Basin Water Resources Council (Committee)
Basin Water Resources Management
Basin Water Resources Management Plan/Planning
Country Assistance Strategy
Community-driven development
Community Development Plan
Central Dam Monitoring Unit within MPW
Country Partnership Strategy
Civil Society Organization
Designated Account
River Basin
Directorate General of Water Resources, MPW
Directorate General of Agriculture Infrastructure and Facilities
Local Government Agriculture Services
Local Government Public Works Services (Department)
Local Government Water Resources Services (Department)
Local Government Legislative Assembly
Dam Safety Commission
Environmental Management Plan
Financial Monitoring Report
Government of Indonesia
Federation/Apex Body of Water Users Associations (WUAF)
Kabupaten Irrigated Agriculture Improvement Program
International Bank for Reconstruction and Development
Implementation Completion Report
Interim Financial Reports
Impact Monitoring and Evaluation Unit
Irrigation Management Fund
Japan Bank for International Cooperation
Java Irrigation and Water Resources Management Project
District
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KIIF
KLH
KOMIR
KPIU
KPMU
MIS
MoA
MoEnv
MOF
MoHA
MPW
MOU
NPIU
NPMU
NSCWR
NWC
O&M
PAD
PDO
Perda
PIM
PIU
PJT I/II
PKPI
PMU
PMM
PPISP
PPIU
PPMU
PPTPA
PTPA
PWRC
SRI
RBC
RIM
TA
UPTD
WISMP
WS
WUA
WUAF
WUR
Kabupaten Irrigation Improvement Facility (DPI-K)
State Ministry of Environment
Irrigation Commission (Committee)
Kabupaten Project Implementation Unit
Kabupaten Project Management Unit
Management Information System
Ministry of Agriculture
Ministry of Environment
Ministry of Finance
Ministry of Home Affairs
Ministry of Public Works
Memorandum of Understanding
National Project Implementation Unit
National Project Management Unit
National Steering Committee for Water Resources
National Water Council
Operation and Maintenance
Project Appraisal Document
Project Development Objectives
Local Government Regulation
Participatory Irrigation Management
Project Implementation Unit
Basin Management Corporation I/II
Irrigation Management Reform Policy
Project Management Unit
Project Management Manual
National Policy on Irrigation
Provincial Project Implementation Unit
Provincial Project Management Unit
River Basin Water Management Committee
Provincial Water Management Committee
Provincial Water Resources Management Council
System of Rice Intensification
River Basin Corporation
River Infrastructure Maintenance and Rehabilitation
Technical Assistance
An Operational Unit within Dinas PUP
Water Resources and Irrigation Sector Management Program
River Territory
Water User Associations
Water User Association Federation (GP3A/IP3A)
Water Use Right
Vice President:
Pamela Cox, EAPVP
Country Director: Stefan Koeberle, EACIF
Sector Director: John Roome, EASSD
Sector Manager: Franz Drees-Gross, EASIS
Task Team Leader: Xiaokai Li, EASIN
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INDONESIA
Water Resources and Irrigation Sector Management Program Phase I Project
(WISMP1) and
Nusa Tenggara Barat Water Resource Management Project (NTB-WRMP)
CONTENTS
Water Resources and Irrigation Sector Management Program Phase I Project Data Sheet…………………………………………………………………………………….i
A. Basic Information
B. Key Dates
C. Ratings Summary D. Sector and Theme Codes
E. Bank Staff
F. Results Framework Analysis
G. Ratings of Project Performance in ISRs H. Restructuring
I. Disbursement Graph
Nusa Tenggara Barat Water Resource Management Project (NTB-WRMP)
Data Sheet…………………………………………………………………………………….xi
A. Basic Information B. Key Dates
C. Ratings Summary
D. Sector and Theme Codes
E. Bank Staff F. Results Framework Analysis
G. Ratings of Project Performance in ISRs
H. Restructuring
I. Disbursement Graph
1. Project Context, Development Objectives and Design…………………………..1
2. Key Factors Affecting Implementation and Outcomes …………………………7
3. Assessment of Outcomes ………………………………………………………15
4. Assessment of Risk to Development Outcome ……………………………….. 24
5. Assessment of Bank and Borrower Performance ………………………………26
6. Lessons Learned ………………………………………………………………..29
7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ….29
Annex 1. Project Costs and Financing ……………………………………………31
Annex 2. Outputs by Component …………………………………………………34
Annex 3. Economic and Financial Analysis ……………………………………...41
Annex 4. Bank Lending and Implementation Support/Supervision Processes …...45
Annex 5. Beneficiary Survey Results …………………………………………….48
Annex 6. Stakeholder Workshop Report and Results …………………………….49
Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR…………50
Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ………….55
Annex 9. List of Supporting Documents ………………………………………….56
MAP: IBRD 39248
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For WISMP 1 (Phase I of the WISMP APL):
A. Basic Information
Country: Indonesia Project Name:
Water Resources &
Irrigation Sector
Management Program
Project ID: P059931 L/C/TF Number(s):
IBRD-47110, IBRD-
77570, IDA-
38070,TF-52124
ICR Date: 03/29/2012 ICR Type: Core ICR
Lending Instrument: APL Borrower: REPUBLIC OF
INDONESIA
Original Total
Commitment: USD 84.00M Disbursed Amount: USD 86.00M
Revised Amount: USD 84.00M
Environmental Category: B
Implementing Agencies:
Directorate General Water Resources of Ministry of Public Works (DGWR-MOPW)
Directorate General Regional Development of Ministry of Home Affairs (DGRD-MOHA)
Directorate General Land and Water of Ministry of Agriculture (MOA)
Co-financiers and Other External Partners: Government of Netherlands (USD 14 Million)
B. Key Dates
Process Date Process Original Date Revised / Actual
Date(s)
Concept Review: 12/17/2001 Effectiveness: 11/24/2005 11/24/2005
Appraisal: 03/17/2003 Restructuring(s):
Approval: 06/26/2003 Mid-term Review: 03/17/2008 03/28/2008
Closing: 12/31/2009 12/31/2010
C. Ratings Summary
C.1 Performance Rating by ICR
Outcomes: Moderately satisfactory
Risk to Development Outcome: Moderate
Bank Performance: Moderately Satisfactory
Borrower Performance: Moderately Satisfactory
C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)
Bank Ratings Borrower Ratings
Quality at Entry: Moderately
Satisfactory Government:
Moderately
Satisfactory
Quality of
Supervision: Satisfactory
Implementing
Agency/Agencies: Satisfactory
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Overall Bank
Performance: Moderately
Satisfactory Overall Borrower
Performance: Moderately
Satisfactory
C.3 Quality at Entry and Implementation Performance Indicators
Implementation
Performance Indicators
QAG Assessments
(if any) Rating
Potential Problem
Project at any time
(Yes/No):
No Quality at Entry
(QEA): Satisfactory
Problem Project at any
time (Yes/No): Yes
Quality of
Supervision (QSA): None
DO rating before
Closing/Inactive status: Satisfactory
D. Sector and Theme Codes
Original Actual
Sector Code (as % of total Bank financing)
General water, sanitation and flood protection sector 50 30
Irrigation and drainage 50 70
Theme Code (as % of total Bank financing)
Rural services and infrastructure 50 50
Water resource management 50 50
E. Bank Staff
Positions At ICR At Approval
Vice President: Pamela Cox Jemal-ud-din Kassum,
Country Director: Stefan G. Koeberle Andrew Steer
Sector Manager: Franz R. Drees-Gross Mark D. Wilson
Project Team Leader: Xiaokai Li Guy Alaerts
ICR Team Leader: Xiaokai Li
ICR Primary Author: Xueming Liu &
John Weatherhogg ( FAO/CP)
F. Results Framework Analysis
Project Development Objectives (from Project Appraisal Document)
(a) Water allocation, water quality and water conservation improved in Project basins, and
river infrastructure better maintained, through strengthened capacity for planning and
management; and investments;
(b) Sector governance enhanced, and sector fiscal sustainability strengthened, nationally,
and in Project basins, through setting up Water Resources Councils; ensuring stakeholder‟s
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involvement; unbundling of operational tasks, and Private Sector Participation; and improved
cost recovery; and
(c) Increased agricultural productivity and improved performance of irrigation, based on
participatory irrigation management, through setting up and strengthening WUAFs;
strengthening restructured Dinas PUP of local government; financing rehabilitation and
improvement of existing irrigation schemes; and facilitating access to agricultural support
services and micro-credit.
The project development objective stated in the Development Credit Agreement (DCA) is as
follows: The objective of the Project is to assist the Borrower in attaining a strengthened
water resources sector by improving the performance of its water resources and irrigation
sector, and rehabilitating and upgrading the infrastructure of the said sector.
Revised Project Development Objectives (as approved by original approving authority)
There is no revision of project development objectives in the course of project
implementation. There are some discrepancies between the monitoring indicators of the DCA
and those of the PAD. As per advice of the Operations Support Team of the EAP Sustainable
Development Department, the indicators from the PAD were used for reporting below.
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Indicator Baseline Value
Original Target
Values Formally Revised
Target Values Actual Value
Achieved at
Completion or
Target Years
Indicator 1 Allocation of deliverable water more equitable for all competing uses and needs (incl.
environmental).
Value
quantitative
or
Qualitative
No
participatory
water allocation
planning
practiced
>75% of demand being
met in each sub-sector,
in 5 project Basins
Participatory allocation
planning was piloted in 5
river basins and is being
practiced in 9 river
basins, enabling more
equitable water
allocation for all uses.
However, no information
is available on the exact
percentage of sub-sector
water demand met.
Date
achieved
31-May-2003 31-December-2006 31-December-2010
Comments
Achievement: Virtually achieved based on the number of river basins practicing
participatory water allocation planning
Indicator 2 System of water pollution monitoring and control effective
Value
quantitative
or
Qualitative
No basin
oriented water
pollution
monitoring and
control system
in place
System of water
pollution monitoring
and control, incl.
discharge permits and
fees, effective in 1
Project Basin
Water quality monitoring
is practiced in 27
participating basins and
water quality databases
established. The data
collected was shared
with the respective
environmental agency
responsible for water
pollution control,
discharge permit, and
fees, for further action.
Date
achieved
31-May-2003 31-December-2006 31-December-2010
Comments
Achievement: partially achieved. Water quality/pollution monitoring target fully achieved
while there is no data available on the effectiveness of water pollution control (discharge
permit and fees, etc)
Indicator 3 Economic losses reduced as river infrastructure development and O&M are better geared
to regional priorities and sustained cost recovery.
Value
quantitative
or
Qualitative
River
infrastructure
development
and O&M were
carried out
without public
consultation
Economic losses
reduced as river
infrastructure
development and O&M
are better geared to
regional priorities and
sustained cost recovery.
Priority maintenance of
key river infrastructure
in 54 Balai PSDA is
based on public
consultation and
participation. O&M cost
is met through
government budget as
cost recovery through
service fees was
precluded by Law No.
7/2004.
Date
achieved
31-May-2003 31-December-2006 31 December-2010
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Comments Achievement: largely achieved, based on the fact that river infrastructure development and
O&M are better aligned with regional priorities and needs through consultation and
participation.
Indicator 4 Balai PSDA plan basin operations and investments based on BWRMPs
Value
quantitative
or
Qualitative
BWRMP
prepared for 2
basins (Pekalen
Sampean and
Bodri Kuto)
In 3 basins the Balai
PSDAs plan basin
operations and
investments based on
Basin Water Resource
Management Plans
(BWRMPs)
In 20 project basins the
BWRMPs were prepared
and six of these plans
were legalized and are
being used as the basis
for basin operations and
investments.
Date
achieved
31-May-2003 31-December-2006 31 December-2010
Comments Achievement: over 100% by the number of basins where basin operations and investments
are based on BWRMPs.
Indicator 5 Demonstrable improvement in construction quality and contract management, annual
work programs based on cost-effectiveness, improved inter-agency coordination.
Value
quantitative
or
Qualitative
Construction
work program
was prepared
through top-
down approach,
with little inter-
agency
coordination
Demonstrable
improvement in
construction quality and
contract management;
annual work programs
based on cost-
effectiveness;
Improved inter-agency
coordination.
Construction quality and
contract management
improved through
beneficiary participation;
Work program more cost
effective because of end
user participation in
investment prioritization;
Inter-agency
coordination established
and strengthened through
river basin councils
Date
achieved
31-May-2003 31-December-2006 31 December-2010
Comments
Contract management follows established procedures but more transparent with better
quality results by involving beneficiaries. Achievement: largely achieved
Indicator 6 A National Water Council and its Secretariat develop policies for fiscal sustainability and
sector governance and resolve inter-agency conflict
Value
quantitative
or
Qualitative
There was no
dedicated
multi-
stakeholder
coordination
setup for water
sector.
A National Water
Council has appropriate
stakeholders
representation,
reflecting gender
sensitivity, and has its
Secretariat fully
established, staffed,
funded and operational
as evidenced by policy
decisions made.
Target remained the
same, and achievement
date amended to
become December 31,
2010.
A National Water
Council (NWC)
established with multi-
stakeholder
representation in 2009,
and its secretariat fully
functional with adequate
staff and funding from
National Budget
(APBN); A National
Water Resources Policy
was prepared by NWC in
2010 and enacted in
2011.
Date
achieved
31-May-2003 31-December-2006 31-December-2010 31-December-2010
Comments Achievement: 100% based on establishment of a NWC with a fully functional Secretariat
Indicator 7 Number of Participating Provinces that have established Provincial and Basin Water
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Resources Councils (PWRC and BWRC ) with appropriate stakeholder representation
Value
quantitative
or
Qualitative
Provincial
Water
Resources
Management
Committees
(PTPA) existed
in a small
number of
provinces,
without
stakeholder
participation.
In 12 Provinces and 15
basins multi-
stakeholder Water
Resources Councils
reflecting sensitivity
towards gender
sensitivity and
vulnerable groups are
established, and
demonstrably influence
regulations, water
allocation investments
and budgets.
50% of the Participating
Provinces establish
PWRCs with proper
stakeholder
representation, and 50%
of these provinces in
process of establishing
BWRCs.
Target achievement
date amended to be
December 31, 2010.
13 out of 14 provinces
established PWRCs, with
9 fully functional and 5
out of the 9 PWRCs
finalizing the provincial
water resources policy.
9 out of the 14 provinces
established a total of 16
BWRCs that were
engaged in basin
strategic plan review and
water use conflict
resolution.
Date
achieved
31-May-2003 31-December-2006 31-December-2010 31-December-2010
Comments
Achievement: over 100% based on the number of total PWRCs and BWRCs established
(against amended targets)
Indicator 8 Basin Water Resources Management Plans (BWRMP)adopted by the local parliament
(DPRD) and the Provincial Water Resources Council
Value
quantitative
or
Qualitative
2 Basin Water
Resources
Management
Plan are
prepared, have
not been
discussed in
PPTPA.
3 BWRMPs adopted by
DPRD and Provincial
Water Resources
Councils.
9 basin strategic plans /
BWRMP have been
reviewed and adopted by
the Provincial Water
Resources Councils/local
parliament (DPRD).
Date
achieved
31-May-2003 31-December-2006 31 December-2010
Comments
Achievement: over 100% based on the number of BWRMPs adopted
Indicator 9
Local Government (Pemda) budget allocation covers 50% of Balai PSDA operating cost;
abstraction and effluent discharge fee revenue covers 25% of operational expenditures of
a new river basin corporation (RBC)
Value
quantitative
or
Qualitative
In Balai PSDAs
established
prior to the
project, major
part of the
budget
originated
from central
government
In 3 basins, earmarked
Pemda budget
allocation covers 50%
of Balai PSDA
operating costs;
Abstraction and effluent
discharge fee revenue
covers 25% of
operational
expenditures of a new
basin organization
(RBC)
In each of the 14 Participating Provinces
for each basin under their
authority, a Balai PSDA
established in each of 14
provinces for every
provincial basin with
100% funding
(structural) from
provincial budget
(APBD). Effluent
discharge fee not
allowed by the Water
Law No. 7/2004.
Date
achieved
31-May-2003 31-December-2006 31 December-2010
Comments
Achievement: fully achieved if measured by the number of basins where the Balai PSDAs
get 50% of their operating costs from APBD.
Indicator10 Operational Framework prepared to pilot more commercial approach in APL II
Value Operational Operational Framework Operational framework
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quantitative
or
Qualitative
framework not
available
prepared to pilot more
commercial approach in
APLII
based on public service
corporation (BLU)
concept developed but
not yet accepted by the
National Government.
Date
achieved
31-May-2003 31-December-2006 31- December-2010
Comments
Financial administrative regulations require a full separation of management entities of
BLU and Balai WS. This issue was not resolved during WISMP2 (APLII) negotiations so
the BLU could not be officially included in WISMP2. Achievement: partially achieved
Indicator11 Public irrigation schemes in kabupaten are governed by WUAFs in partnership with
kabupaten government.
Value
quantitative
or
Qualitative
493,540 ha
irrigation area
adopted joint
management;
166,173 ha
rehabilitated
and managed
by WUAF with
technical and
matching grant
financial
support;
Irrigation
commissions
established in
50 Kabupatens
50% of public irrigation
schemes in 70
kabupaten (690,000 ha)
managed by WUAFs in
partnership with
Kabupaten government;
At least 25% of
secondary canal
services (345,000 ha)
managed by WUAFs
with technical and
matching grant financial
support;
Kabupaten Irrigation
Commissions
operational in 70
Kabupaten
A total of 1,027,194 ha
of public irrigation areas
governed by WUAFs in
partnership with
kabupaten or provincial
government agencies
(>100%);
Secondary canals serving
354,464 ha rehabilitated
and managed by WUAFs
jointly with Kabupaten
irrigation agencies
providing technical and
financial support
(>100%); and 12
Provincial and 95
Kabupaten Irrigation
Commissions operational
(>100%).
Date
Achieved
31-May-2003 31-December-2006 31- December-2010
Comments Achievement: over 100% (See above)
Indicator 12 Active participation of women farmers in WUAs and WUAFs enhanced
Value
quantitative
or
Qualitative
Women were
rarely active in
the WUAs and
WUAFs.
Active participation of
women farmers in
WUAs and WUAFs
enhanced
Women‟s participation in
WUAs and WUAFs is
stimulated through their
inclusion in training and
provision of female
community organizers or
facilitators (30%),
resulting in increased
active women
participation in many
WUA/WUAF boards,
now accounting for 5%-
7% of total board
members.
Date
achieved
31-May-2003 31-December-2006 31- December-2010
Comments Achievement: fully achieved, based on qualitative assessment of women‟s participation in
WUAs and WUAFs
Indicator 13 Capacity of 70 Kabupaten Irrigation Departments Improved
Value
quantitative
Participatory
irrigation
Capacity of 70
Kabupaten Irrigation
99 Kabupaten and 12
provinces restructured
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or
Qualitative
management
newly
introduced
Departments Improved their irrigation
departments, issued
Regulations on
Irrigation, and trained
their staff (about 7,000)
in participatory irrigation
management, rapid
assessments, and
supporting user
communities.
Date
achieved
31-May-2003 31-December-2006 31 December 2010
Comments: Achievement: over 100% measured by the number of Kabupaten irrigation departments the
capacity of which has been improved under the project
Indicator 14 Reduction in Government rehabilitation investment expenditures by 10% by transfer of
tasks and budgets to WUAFs
Value
quantitative
or
Qualitative
Contribution of
the WUAFs to
rehabilitation
cost piloted in
the irrigation
systems under
previous
IWIRP project.
Reduction in
Government
rehabilitation
investment expenditures
by 10% by transfer of
tasks and budgets to
WUAFs
Participatory
construction enabled
WUAF contributions in
form of labor, materials
and sometimes cash, and
related budget transfer to
them. WUAFs‟
contributions reached
10% of rehabilitation
cost, and led to better
quality and longer use
life of project works
Date
achieved
31-December-2006 31- December-2010
Comments Achievement : 100% by percentage of WUAF contribution to government system
rehabilitation investment expenditures
Indicator 15 Matching contributions from WUAFs for O&M of schemes are at least 20% of expenditure
in half of the schemes and increase in all schemes.
Value
quantitative
or
Qualitative
There was no
mechanism for
WUAF to
participate in
the O&M
activities. If
any, it was
done in an ad
hoc manner.
Matching contributions
from WUAFs for O&M
of irrigation schemes
are at least 20% of
expenditure in half of
the schemes and
increase in all schemes.
For O&M of public
systems the WUAF
contributed in form of
labor amounting to 20%
or more of the O&M
cost. In general,
WUAFs‟ contributions to
O&M of all the project
schemes have increased.
Date
Achieved
31-May-2003 31-December-2006 31- December-2010
Comments: Achievement: full achieved
Indicator 16 Irrigation O&M budgets of 11 provinces and 70 kabupaten reach a satisfactory and
sustainable level.
Value
quantitative
or
Qualitative
The local
budget (APBD)
allocated for
irrigation
system O&M is
erratic and
marginal, well
below the level
of 60,000Rp/ha
level.
Irrigation O&M budgets
of 11 provinces and 70
Kabupaten reach a
satisfactory and
sustainable level.
At least15 Participating
Kabupaten provide
from their APBD at
least Rp60,000/ha per
year for O&M over the
total irrigated areas.
Target achievement
date amended to be
December 31, 2010.
9 Provinces and
71Kabupaten,
representing a total of
1,387,000 ha of irrigated
areas, allocated O&M
budgets of over 60,000
Rp/ha(average 130,000
Rp/ha). About 30% of
these provinces and
Kabupatens in 2010
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matched or exceeded
150,000 Rp/ha.
Date
achieved
31-May-2003 31-December-2006 31-December-2010 31- December-2010
Comments: Achievement: 99% against original target and 500% against amended target of total
number of provinces and Kabupatens that provided satisfactory level of O&M budget
Indicator 17 No decrease in average and median farm income in 30 irrigated kabupaten, and
mechanisms in place that will increase income over WISMP2
Before the
project the
irrigation water
efficiency tends
to decline,
causing
decrease in
production and
farm income.
No decrease in average
median farm income in
30 irrigated Kabupaten,
and mechanisms in
place that will increase
income during
WISMP2
Government statistics
showed significant
increase in farm income
in all Participating
Kabupaten, especially in
18 Kabupaten where
agricultural support was
piloted, although no
project specific
monitoring data
available. Investments in
capacity building in all
99 Kabupaten
contributed to better
water management and
to increasing farm
income under WISMP
Date
Achieved
31-May-2003 31-December-2006 31- December-2010
Comments: Achievement: fully achieved, based on the qualitative assessment
Indicator 18 Increase in ERR of benefits based on income from higher rice yield and higher value
crops; and improved farm gate prices.
Crop yield was
generally
decreasing due
to declining
irrigation
system
performance.
Most farmers
sell their
products to the
mediators /
collectors at
low price for
quick cash.
Increase in ERR of
benefits based on
income from higher rice
yield and higher value
crops; and improved
farm gate prices.
Crop production
increased in project areas
due to improved
irrigation system
performance leading to
increase in both crop
intensity and
diversification, which
was reflected in a re-
calculated overall ERR
of 23% (See Annex 3).
Many WUAFs signed
farming contracts with
the private companies,
enabling better prices of
farm products although
systematic record on
farm gate prices are not
available.
Date
Achieved
31-May-2003 31-December-2006 31- December-2010
Comments: Achievement: fully achieved based on economic analysis results
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G. Ratings of Project Performance in ISRs
No. Date ISR Archived
DO IP Actual
Disbursements (USD millions)
1 12/30/2003 Satisfactory Satisfactory 0.00
2 06/25/2004 Satisfactory Unsatisfactory 0.00
3 12/20/2004 Satisfactory Unsatisfactory 0.00
4 06/01/2005 Moderately Satisfactory Unsatisfactory 0.00
5 06/27/2005 Moderately Satisfactory Satisfactory 0.00
6 06/27/2005 Moderately Satisfactory Satisfactory 0.00
7 06/07/2006 Moderately Satisfactory Moderately Satisfactory 6.15
8 06/25/2007 Moderately Satisfactory Moderately Satisfactory 7.20
9 06/23/2008 Satisfactory Satisfactory 18.76
10 06/26/2009 Satisfactory Satisfactory 37.90
11 12/24/2009 Satisfactory Satisfactory 42.16
H. Restructuring (if any)
N/A
I. Disbursement Profile
The actual disbursement is the total of credit, loan and grant while the original and
formally revised amounts do not include the grant amount.
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xi
For NTB-WRMP:
A. Basic Information
Country: Indonesia Project Name:
EC GRANT - ID
NTB-River Basin
Water Resources
Management Program
Project ID: P095128 L/C/TF Number(s): TF-55997
ICR Date: 03/29/2012 ICR Type: Core ICR
Lending Instrument: SIL Grantee: REPUBLIC OF
INDONESIA
Original Total
Commitment:
Euro 9.05 M
(USD 12.00 M
equivalent)
Disbursed Amount: N/A
Revised Amount:
Euro 9.50M
(USD 11.36M
equivalent)
Disbursed Amount
Euro 9.46M
(USD11.31M
equivalent)
Environmental Category: U
Implementing Agencies:
Directorate General Water Resources of Ministry of Public Works (DGWR-MOPW)
Directorate General Regional Development of Ministry of Home Affairs (DGRD-MOHA)
Directorate General Land and Water of Ministry of Agriculture (MOA)
Co-financiers and Other External Partners: European Commission(EC)
B. Key Dates
Process Date Process Original Date Revised / Actual
Date(s)
Concept Review: * Effectiveness: 12/27/2005 12/27/2005
Appraisal: * Restructuring(s): N/A N/A
Approval: * Mid-term Review: 03/28/2008 02/19/2008
Closing: 06/30/2011 06/30/2011
* There was no formal concept review, appraisal and Board approval.
C. Ratings Summary
C.1 Performance Rating by ICR
Outcomes: Moderately satisfactory
Risk to Development Outcome: Moderate
Bank Performance: Moderately satisfactory
Grantee Performance: Moderately Satisfactory
C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)
Bank Ratings Borrower Ratings
Quality at Entry: Moderately
Satisfactory Government:
Moderately
Satisfactory
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xii
Quality of
Supervision: Satisfactory
Implementing
Agency/Agencies: Satisfactory
Overall Bank
Performance: Moderately
Satisfactory Overall Borrower
Performance: Moderately
Satisfactory
C.3 Quality at Entry and Implementation Performance Indicators
Implementation
Performance Indicators
QAG Assessments
(if any) Rating
Potential Problem
Project at any time
(Yes/No):
No Quality at Entry
(QEA): None
Problem Project at any
time (Yes/No): No
Quality of
Supervision (QSA): None
DO rating before
Closing/Inactive status: Satisfactory
D. Sector and Theme Codes
Original Actual
Sector Code (as % of total Bank financing)
General water, sanitation and flood protection sector 50 30
Irrigation and drainage 50 70
Theme Code (as % of total Bank financing)
Rural services and infrastructure 67 67
Water resource management 33 33
E. Bank Staff
Positions At ICR At Approval
Vice President: Pamela Cox Jemal-ud-din Kassum
Country Director: Stefan G. Koeberle Andrew Steer
Sector Manager: Franz R. Drees-Gross Mark D. Wilson
Project Team Leader: Xiaokai Li Guy Alaerts
ICR Team Leader: Xiaokai Li
ICR Primary Author: Xueming Liu &
John Weatherhogg ( FAO/CP)
F. Results Framework Analysis
Project Development Objectives (from Grant Agreement)
The objective of the Grant is to assist the Recipient in strengthening the water
resources and irrigation sector in the Province of Nusa Tenggara Barat and in the
Kabupatens of the said province by improving the performance of the Province's and
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xiii
the Kabupatens' water resources and irrigation sector, and rehabilitating and
upgrading its infrastructure of the said sector.
Revised Project Development Objectives (as approved by original approving authority)
There is no revision of the project development objective in the course of project
implementation.
There is no PAD for this project, therefore the performance indicators in the 2005
Grant Agreement (amended in 2009) are used for the analysis.
Indicator Baseline
Value
Original Target
Values (from
approval
documents)
Formally Revised
Target Values
Actual Value
Achieved at
Completion or
Target Years
Indicator 1
A Provincial Water Resources Council (PWRC) with appropriate stakeholder
representation and its Secretariat established and functional.
Value
quantitative or
Qualitative
No provincial
water resources
council exists.
A PWRC, with
Secretariat,
established with
representative
stakeholder
representation,
reflecting gender
sensitivity established
and functional with
evidence
A PWRC established
with a fully staffed and
funded secretariat in
2009. PWRC includes
women and
vulnerable group
representatives. It is
functional, and has
discussed provincial
policy on climate
change adaptation, and
resolved water use
conflicts.
Date achieved 20-December-
2005 30-June-2011 30-June-2011
Comments
(incl. %
achievement)
The PWRC and its Secretariat established with appropriate representation and fully
functional. Achievement: fully achieved
Indicator 2 Basin Water Resources Councils (BWRCs) established with appropriate stakeholder
representation and functional.
Value
quantitative or
Qualitative
No provincial
basin water
resources
council exists.
All BWRCs
established covering
the whole territory of
the Province and each
BWRC has
representative
stakeholder
representation.
Two BWRCs are
established in Sumbawa
and Bima-Dompu
covering the whole
Island of the province,
each with representative
stakeholder
representation.
Two BWRCs
established with
required representation
in NTB. BWRC
Lombok established in
2009 and functional -
discussed strategic
plan and basin
management issues;
BWRC Bima -Dompu
established in 2010,
and BWRC Sumbawa
in 2011
Date achieved 20-December-
2005 30-June-2011 30-June-2011 30-June-2011
Comments
(incl. %
Achievement: 100% by number of BWRCs established (According to Water Law
No.7/2004, BWRC establishment is based on need).
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xiv
achievement)
Indicator 3 Balai PSDA covering entire provincial territory established and operational with
trained staff.
Value
quantitative or
Qualitative
No formal basin
unit or Balai
PSDA exists.
All UPTD/ Balai
PSDA established,
covering the entire
Province, adequately
staffed and
operational, and at
least half of such
entities are receiving
50% of their
operational budget
form the Province
Government
Three Balai PSDAs
and one Balai ISDA
established and
functional. Necessary
training carried out
with over 100
personnel trained.
These entities are
receiving over 50% of
their budgets for
operations, from
Provincial
Government.
Date achieved 20-December-
2005 30-June-2011 30-June-2011
Comments
(incl. %
achievement)
All Balai PSDA established covering the whole territory of the Province, and
appropriately staffed and fully operational. Achievement: 100% by number of Balai
PSDA.
Indicator 4
A decree of Dinas PUP has been issued for role sharing in hydrometeorology between
the relevant Dinas PUP and UPTD or Balai PSDA, and the hydromet network is
operational.
Value
quantitative or
Qualitative
There were no
dedicated funds
for hydromet
work in the
Balai, although
limited funds
available in
Dinas for this
purpose.
A Dinas PUP Surat
Keputusan has been
issued for role
sharing in
hydrometeorology
between the relevant
Dinas PUP and
UPTD or Balai PSDA
in the Province.
Hydromet asset mgt
fully transferred from
the Dinas PUP to the
relevant UPTD or
Balai PSDA and
hydromet network
fully operational
A decree of Dinas
PUP issued, 4 Joint
Operation Agreements
between Dinas PUP
and Balai PSDA
Lombok, Balai PSDA
Sumbawa,
Balai PSDA Bima-
Dompu and Balai
ISDA signed in 2007.
Hydromet asset mgt.
transferred; and and
hydrometric data being
collected and
managed by Balai
ISDA.
Date achieved 20-December-
2005 30-June-2011 30-June-2011
Comments
(incl. %
achievement)
Achievement: largely achieved.
Indicator 5 The provincial planning unit in Dinas PUP appropriately staffed and funded, and
producing basin water resources management plans.
Value
quantitative or
Qualitative
There was no
planning unit in
the Dinas PUP.
The provincial
planning unit in
Dinas PUP
appropriately staffed
and funded, and
producing basin
water resources
management plans.
The Provincial
Planning Team in Dinas
PUP established,
appropriately staffed
and funded and capacity
developed to prepare
strategic and master
plans for river basins
under the authority of
the Province.
The planning function
integrated into the
structural functions of
Dinas PUP. A
provincial planning
team established
supervising outsourced
planning services;
strategic plans for
Lombok and Bima
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xv
Dompu basins
completed and
legalized.
Date achieved 20-December-
2005
30-June-2011 30-June-2011 30-June-2011
Comments
(incl. %
achievement)
Achievement: virtually achieved based on the number of basin plans completed.
Indicator 6 : Quality assurance plans and infrastructure maintenance plans produced and being
implemented.
Value
quantitative or
Qualitative
There was no
Quality
Assurance Plans
in existence.
Quality Assurance
Plans and river
infrastructure
maintenance plans
produced and being
implemented.
Quality Assurance
Plans and irrigation
infrastructure
maintenance plans
produced and being
implemented.
Quality Assurance
Core team established,
quality assurance and
maintenance plans
produced and being
implemented, and
annual river
infrastructure
maintenance plans
prepared in
consultation with
stakeholder and
implemented.
Date achieved 20-December-
2005
30-June-2011 30-June-2011 30-June-2011
Comments
(incl. %
achievement)
Achievement: fully achieved.
Indicator 7 : Area of irrigation system is co-managed by WUAFs.
Value
quantitative or
Qualitative
There was no
co-management
arrangements
for irrigation
system
At least 60,000 ha of
irrigation system is
co-managed by
WUAFs, resulting in
demonstrable
operation and
maintenance, crop
productivity, water
use efficiency, and
reduced levels of
infrastructure
deterioration.
145,000 ha of
irrigation schemes co-
managed with
WUAFs;
crop productivity
increased 4.4% and
harvested areas
increased 24.5%; and
infrastructure
improved with longer
life expected.
Date achieved 20-December-
2005 30-June-2011 30-June-2011
Comments
(incl. %
achievement)
Achievement: 225% by number of hectare co-managed by WUAFs.
Indicator 8 Number of WUAFs established in 7 Participating Kabupatens.
Value
quantitative
or
Qualitative
No WUAF
request
mechanism
was in
At least 160
WUAFs in 7
Kabupatens
established,
presented to
respective
The Province and 7
Kabupatens issued
Perdas and
established
Irrigation
Commissions; A
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xvi
existence.
Irrigation
Commissions IMF
funding proposals
endorsed by the
relevant Dinas
PUP.
total of 214 WUAFs
established;
WUAFs‟ proposals
presented to
Irrigation
Commissions.
Date
achieved
20-
December-
2005
30-June-2011 30-June-2011
Comments
(incl.%
achievement)
Achievement: 135% by number of WUAFs established.
Indicator 9 Number of IMF funding proposals received by the Irrigation Commissions from
WUAFs in the 7 Participating Kabupaten.
Value
quantitative
or
Qualitative
Neither
WUAF
request
mechanism
nor Irrigation
Commission
exists.
In 7 Participating
Kabupaten, the
Irrigation
Commissions
received, reviewed,
evaluated and
recommended at
least 100 WUAFs‟
proposals for IMF
funding endorsed
by the relevant
Dinas PUP.
The Irrigation
Commission
received and
evaluated over 100
proposals endorsed
by the Dinas PUP,
and 91 proposals
were recommended
for IMF funding.
Date
achieved
20-
December-
2005
30-June-2011 30-June-2011
Comments
(incl. %
achievement)
Achievement: 100% by number of proposals received by the Irrigation
Commissions and endorsed by Dinas PUP.
Indicator 10 Number of Participating Kabupaten that provide from APBD at least 60,000 Rp/ha
O&M budget for their project schemes.
Value
quantitative
or
Qualitative
Local budget
(APBD)
allocated for
irrigation
system O&M
was erratic
and marginal,
well below
the level of
60,000Rp/ha
level.
At least 3
Kabupaten
supplied from their
APBD, at least
60,000 Rp/ha per
year of IMF funds
over the total
irrigated area in
their respective
Kabupatens,
besides required
counterpart budget
The Province and 4
Kabupatens
allocated over
60,000 Rp/ha O&M
budget through
APBD. All 7
Participating
Kabupatens
provided required
counterparts budgets
for project
implementation.
Date
achieved
20-
December-
2005
30-June-2011 30-June-2011
Comments
(incl. %
achievement)
Achievement: 100% by number of Kabupaten providing the required O&M budget.
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xvii
G. Ratings of Project Performance in ISRs
No. Date ISR Archived
DO IP Actual
Disbursements (USD millions)
1 06/25/2008 Satisfactory Moderately Satisfactory 3.79
2 06/24/2009 Satisfactory Satisfactory 5.63
3 02/13/2010 Satisfactory Satisfactory 8.97
4 06/27/2011 Satisfactory Highly Satisfactory 12.21
H. Restructuring (if any)
N/A
I. Disbursement Profile
The Grant has been fully disbursed. Disbursement Profile for NTB-WRMP is not
available in the system because it is not treated as a separate project due to its special
relation with the WISMP 1 project, although NTB-WRMP has its own project
number.
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1
1. Project Context, Development Objectives and Design
1.1 Context at Appraisal
1.1.1 Country and sector background: Water resources and irrigation management plays an
important role in Indonesia‟s socio-economic development in terms of food security since
most grain production is from irrigated areas. Development of water resources and irrigation
between the 1970s and mid 1980s focused on achieving and maintaining self sufficiency in
rice after a period of serious food shortages. During five consecutive five-year plan periods
starting in 1969, some 2.5 million hectares of irrigation areas were rehabilitated and 1.7
million hectares of new areas were developed. River basin management was mainly seen as a
requirement for securing irrigation supply and flood protection. Such efforts were supported
by massive expansion and farm input programs leading to self sufficiency in rice in 1984.
1.1.2 However, the government could not maintain rice self-sufficiency after that. One of
the main reasons was the lack of attention to and funding for operation and maintenance
(O&M) of the newly rehabilitated and developed irrigation systems. The subsequent rapid
deterioration of the physical systems resulted in frequent and premature rehabilitation or
deferred maintenance of the infrastructure. In the late 1990s it became clear that such a supply
driven approach led to unsustainable use of water resources and poor cost recovery.
1.1.3 In response to the financial crisis, the government embarked in 1998 on a process of
democratization and decentralization. This also involved reform of the water resources and
irrigation sector aiming at devolution and unbundling of management responsibilities to
provincial and district governments. It introduced stakeholder participation to enhance
sustainable management of the resource and infrastructure, and put more emphasis on demand
responsive and decentralized service delivery.
1.1.4 These reforms were fully supported by the Bank. The Country Assistance Strategy
(CAS) (2001) had three main objectives, (a) promoting broad-based growth; (b) building
national institutions for accountable government;, and (c) delivering better public services to
the poor, including support to local governments that put reform into practice. The WISMP
program and this first phase project contributed substantially to objectives (b) and (c) of the
CAS.
1.1.5 Rationale for Bank Assistance: After the 1997/98 financial crisis, the Bank played a
leadership role through its support to the regulatory reform (Water Resources Sector
Adjustment Loan (WATSAL, Ln. 4469-IND) (1999 - 2003)) and the large-scale field pilot of
new institutional arrangements for irrigation and basin water resources management (Java
Irrigation Improvement and Water Management Project (JIWMP, Ln. 37624) (1995 - 2002)
and Indonesia Water and Irrigation Reform Implementation Project (IWIRIP, TF 29896)
(2001 - 2004) resulting in a new Law on Water Resources in 2004. Other donors were also
actively supporting the reform process, leading to the formation of the Donor Water
Resources Sector Support Group in October 2000. The Asian Development Bank (ADB) and
the Japan Bank for International Cooperation (JBIC), which both held larger water resources
portfolios than the bank, increasingly adopted the principles and concepts emerging from
JIWMP and WATSAL. As a result, both ADB and JBIC harmonized their own project
designs, culminating in the ADP Participative Irrigation Project (PISP) and participatory
approaches in JBIC loans for small-scale irrigation management projects. The Government of
Indonesia‟s intention was to implement these reforms in the decade up to 2014. Due to its
deep involvement in WATSAL and the other projects piloting the reforms, the Bank was well
positioned to support WISMP to implement and further the sector reforms. Furthermore, the
Bank‟s long-standing involvement in Indonesia‟s water sector provided a sound basis for
project design, in particular sequencing priorities and benefiting from earlier project
implementation experiences.
-
2
1.1.6 When GOI and the European Union (EU) decided to undertake a project with similar
institutional reform goals with more poverty focus in the province of Nusa Tenggara Barat
(NTB), it was agreed that the EU grant could best be administered by the Bank. In addition to
increasing the geographic coverage of the WISMP water sector reforms, it was in line with
the on-going Good Governance in Water Resource Management Project (GGWRMP)
financed by EU and covering three river basins (respectively in DI Yogyakarta, East Java and
Lampung).
1.2 Original Project Development Objectives and Key Indicators
1.2.1 The WISMP was designed as a twelve-year adaptable program loan (APL). The
WISMP program objectives were as follows:
(a) Sustainable and equitable management of surface water resources and their
utilization infrastructure by: (i) transparent sector governance institutions and, (ii)
more accountable and better performing sector agencies;
(b) Increased irrigation farm household incomes and improved regional food security
as a result of raising the overall productivity of irrigated agriculture and reducing its
vulnerability to natural and economic shocks through: (i) sustainable participatory
irrigation management for more reliable and equitable water provision and, (ii) better
agricultural and marketing support services for members of irrigation water user
associations; and
(c) More cost-effective and fiscally sustainable management of sector agencies.
1.2.2 Within these overall program objectives the project development objectives of the
WISMP Phase I (WISMP1) were stated as follows:
(a) Water allocation, water quality and water conservation improved in Project basins,
and river infrastructure better maintained, through strengthened capacity for planning
and management; and investments;
(b) Sector governance enhanced, and sector fiscal sustainability strengthened,
nationally, and in Project basins, through setting up Water Resources Councils
(WRCs); ensuring stakeholder involvement; unbundling of operational tasks, and
Private Sector Participation; and improved cost recovery; and
(c) Increased agricultural productivity and improved performance of irrigation, based
on participatory irrigation management, through setting up and strengthening Water
User Association Federations (WUAFs); strengthening restructured Local
Government Public Works Water Resources Departments (Dinas PUPs); financing
rehabilitation and improvement of existing irrigation schemes; and facilitating access
to agricultural support services and micro-credit.
All the triggers for WISMP to migrate to Phase II (WISMP2) were met satisfactorily and
WIMSP 2 loan was approved in 2011, and is now under implementation. This ICR covers
both the WISMP1 and NTB-WRMP projects as approved by the OPCS.
1.2.3. The NTB-WRMP had similar institutional reform objectives with a more clear focus
on poverty alleviation by being located in one of the poorest provinces of Indonesia over a
five year project period. The purpose of the Grant was to assist the Recipient in attaining a strengthened water and irrigation sector in its Province of Nusa Tenggara Barat and in the
Kabupatens in the said province by improving the performance of the Province‟s and the
Kabupatens‟ water resources and irrigation sector, and rehabilitating and upgrading the
infrastructure of said sector.
-
3
1.2.4 The Key Indicators identified for the WISMP project were as follows (See details in
the Data Sheet):
Governance and Institutional Capacity-building: National Water Council (NWC)
established and focusing on implementation of the National Water Policy (as a transitional
arrangement, the National Coordination Team (of Ministers) for Water Resources
Management is upgraded). Basin policy decisions and basin agency operations are transparent
and reviewed by provincial and basin councils or committees that include stakeholders
(including representation of the interests of women and vulnerable isolated indigenous
peoples). Irrigation schemes are governed by WUAFs in partnership with kabupatens via the
Komisi Irigasi, which have stakeholder representation. Water use rights system piloted for
more rational and fair water allocation and providing for in-stream needs.
Management Performance of Sector Agencies: Management audits show that kabupaten
agency assistance to WUAFs is participatory and effective, with Management Information
System (MIS) being maintained, hydrology operations improving, and National Water
Quality Monitoring Network operational in pilot sites.
Fiscal Sustainability of Sector: Cost recovery mechanisms for river infrastructure
maintenance identified and arrangements made for its implementation. Arrangements for fees
on effluent discharges and for water abstraction were operationalized in two basins. KIIF
funds disbursement on a matching basis under way.
(Initiation of) Integrated Approach to Irrigated Agriculture Support: Farmers use extension
services more regularly, raise income (i.e. increased farm incomes).
1.2.5 The Key Indicators for NTB-WRMP were analogous to those for WISMP and were
as follows (See details in the Data Sheet):
(a) A Provincial Water Resources Council (PWRC) with appropriate stakeholder
representation and its Secretariat established and functional;
(b) Basin Water Resources Council (BWRC) established with appropriate
stakeholder representation and functional; (c) Balai PSDA covering entire provincial territory established and operational
with trained staff;
(d) A Dinas PUP Surat Keputusan has been issued for role sharing in
hydrometeorology between the relevant Dinas PUP and UPTD or Balai PSDA, and
the hydromet network operational;
(e) The provincial planning unit in Dinas PUP is established with appropriate
staffing and funding, and starts producing strategic and master plans for provincial
basins;
(f) Quality Assurance Plans and infrastructure maintenance plans produced and
being implemented;
(g) At least 60,000ha of irrigation system is co-managed by WUAFs;
(h) At least 160 WUAFs established in the 71 participating kabupaten;
(i) At least 100 IMF funding proposals received by the Irrigation Commissions
from WUAFs in the 7 Participating Kabupaten; and
(j) At least 3 Participating Kabupaten provide from their APBD at least
Rp60,000/ha O&M budget for their project schemes.
1 Originally 6 kabupaten but later Sumbawa was split into two.
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4
1.3 Revised PDO and Key Indicators
1.3.1 The WISMP PDO remained the same throughout implementation. The loan/credit for
the project was negotiated but the signing and effectiveness of the loan was delayed by two
years because government wanted to ensure consistency with the new law on water
resources only issued in 2004 (Law 7/2004). The consequent changes in the legal and
institutional environment required changes to some key outcome indicators which were
amended accordingly (as expressed in the restated Development Credit Agreement (DCA) of
2009, and shown in the ICR Data Sheet). The PDO for NTB-WRMP was unchanged during
implementation. The key outcome indicators were amended through the Grant Agreement, as
shown in the ICR Data Sheet.
1.4 Main Beneficiaries
1.4.1 The primary target population of WISMP comprised:
(a) The water users in the Project‟s river basins in the 14 Project provinces, notably
men and women farmers, urban and rural settlements, industries, and communities
that depend for their livelihood on water from the rivers;
(b) Men and women farmers, as well as landless laborers and by extension the rural
population, in the Project areas, as they will benefit from better water availability and
from programs to assist in strengthening the rural economy. As the Project intended
to cover approximately 2.35 million ha of irrigated area, it would affect around 6.7
million farmer households or 40 million rural dwellers that directly depended on
irrigation, whilst an additional group‟s income in the rural space depended indirectly
on the performance of irrigated agriculture;
(c)The population on Java as food security and environmental quality will be
improved; and
(d) The communities living in the upper catchment areas in the Project areas and that
would be assisted with programs to improve the management of the soils and land
cover to reduce soil erosion.
1.4.2 For WISMP 1 at least 1.3 million poor farm families, especially share-croppers, as
well as possibly 1 million daily laborers were likely to benefit directly from the more reliable
irrigation service and increased income, and indirectly from improved access to agricultural
information and extension services, and new business opportunities. For NTB-WRMP the
beneficiaries were estimated at around 200,000 households.
1.5 Original Components
1.5.1 The WISMP1 project has the following three components:
Component A. Basin Water Resources Management (Base Cost – US$56.7M)
A1. Sector Governance and Basin Planning (Base cost – US$14.1M): to assist in
establishing and/or strengthening of the following institutions: (a) National Water Council
(NWC) and its precursor the Coordination Team (of Ministers) for Water Resources
Management, with their Secretariats; (b) National Steering Committee for Water Resources
(NSCWR) plus Secretariat; (c) Provincial Water Resources Council (PWRC) plus Secretariat,
in 12 provinces; (d) Basin Water Resources Committees (BWRC) in project river basins; and
(e) Dam Safety Commission (DSC) and Dam Safety Unit. In addition, Provincial Planning
Units were to be established as well as the Central Basin Planning Unit.
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5
A2. Management Capacity of Basin Agencies (Base Cost - US$10.4 M): to establish
and/or strengthen the River Basin Management Units (Balai PSDA), under provincial budget
and Basin Corporations (PJTs), including all studies, training and technical assistance.
A3. Fiscal and Cost Recovery Policy (Base Cost - US$2.00 M): to establish and/or
strengthen the fiscal position and cost recovery of water management in river basins through
funding to the Balai PSDA, PJT (Basin Corporations), provincial and kabupaten Bapedaldas
(Environmental Management Offices) and provincial Dinas PUP, contingent upon the Annual
Work Plan/Program (AWP) review.
A4. Basin Management and River Infrastructure Improvement (Base Cost - US$28.7
M): including: (a) support for operation and monitoring; (b) river infrastructure maintenance
(RIM) - operationalization of asset management and routine maintenance; (c) prioritized
urgent repairs of key river and flood control infrastructure; and (d) establishment of a
National Water Quality Monitoring Network.
A5. National Capacity Building Network (Base Cost - US$1.6 M): To develop a
sustainable human resources (HR) capacity building process for water resources and irrigation
management, it was necessary to reorient higher education programs towards multi-
disciplinary and integrated approaches.
Component B. Participatory Irrigation Management (Base Cost - US43.0 M)
B1. Water User Associations Capacity Building (Base Cost - US$8.3 M): to establish and
operationalize: (a) Kabupaten Irrigation Commissions (Komisi Irigasi), with Kabupaten
Dinas, WUAFs (GP3A) and other stakeholders and gender sensitive; and (b) scheme-level or
apex WUAFs (IP3A), and individual WUAs, with voluntary active women‟s participation
(GP3A,IP3A2) in all schemes.
B2. Irrigation Department Capacity Building (Base Cost - US$5.1 M) at Kabupaten level
since the role of Kabupaten Dinas PUP would orient more to facilitation and be reorganized
so technical staff, extension workers (KF'L) and Community Organizers would work with
WUAFs to provide technical/management guidance for O&M and construction, including:
B3. Irrigation Infrastructure Improvement (Base Cost - US$26.8 M) funded Kabupaten
and provinces that adopted the institutional model of the irrigation reform PKPI. Once the
Kabupaten Irrigation Improvement Facility (KIIF) had been established WUAF could also be
funded.
B4. Irrigated Agriculture Improvement Program (IAIP) (Base Cost - US$2.7 M) aimed
to: (a) strengthen farmer organizations‟ (WUAFs) technical, organizational, and managerial
capacity to formulate demands and to interact efficiently and with bargaining power with
service providers (research, extension, agricultural inputs, processing, credit, etc.); and (b)
make service providers (public and private) more responsive (demand driven), farmer
oriented and accountable.
Component C. Project Management (Base Cost US$8.1M)
This Component would support the National Project Management Unit and the National
Project Implementation Units, as well as the Provincial and Kabupaten Project Management
2 IP3A is Induk P3A or apex WUAF and is the voluntary working entity of all GP3As in one irrigation
system
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and Project Implementation Units. The following were the main Technical Assistance
packages to support Project Management: (a) Financial Management Service (FMS); (b)
Impact Monitoring and Evaluation Unit (IMEU); and (c) Preparation of WISMP 2.
1.5.2 The NTB-WRMP intentionally had an identical project structure, components and
sub-components. More specifically it has three components: (a) Basin Water Resources
Management (Euro 5.17 million); (b) Strengthening Participatory Irrigation Management
(Euro 4.60 million) and (c) Project Management and Technical Assistance (Euro 0.93
million). Despite this overall similarity, there was a significant difference in the proportion of
costs of the various expenditure categories between the two projects. For NTB-WRMP the
Services category (TA, Training, Studies and M&E) amounted to 56% of total costs and
Works to 36% compared with 46% and 37%3 respectively for WISMP.
1.6 Revised Components
1.6.1 There was no significant modification of the components in the program project,
except that under WISMP1 the activities related to dam safety management and some
activities related to water environment management were taken out. This is because: (a) the
dam safety management related activities were taken up by a parallel Dam Operational
Improvement and Safety Project financed by the Bank; and (b) the Ministry of Environment
had already got its own similar program funded by the Government.
1.7 Other Significant Changes
1.7.1 Changes in design. Some aspects of the Program changed after WISMP 1 was
approved in 2003 prior to the issue of UU 7/2004, such as the re-arrangement of irrigation
system and basin water resources management authority and mandates. These adjustments
mainly affected the irrigation component and were accommodated in the restated DCA and
approved by management:
Transfer of irrigation management authority to the WUAFs was replaced by participatory irrigation management (PIM) as public irrigation asset ownership and
control was vested in the State. PIM Principles were agreed upon and confirmed in
the restated DCA;
Cost recovery through service fees by government agencies was precluded through the Law on Water Resources and the regulations on public administration. As
a consequence, alternative mechanisms were developed through (i) enhanced
contributions from water users by sharing management tasks and responsibilities and
(ii) enhanced government budget allocations. Another consequence was that the
support for corporatization of basin agencies that recover costs from irrigation water
users could not be materialized.
1.7.2 Changes in regulations. The issuance of revised government and ministerial regulations necessitated a further adjustment at the Mid-Term Review (MTR) through a DCA
Amendment. This involved some changes in the key indicators.
1.7.3 Changes in financing mechanism of GoI contribution. The co-financing method for the GoI contribution was changed into parallel financing for participating provinces
and kabupaten to harmonize central and local government project budgeting
processes. Under the initial co-financing arrangement both central government
budget (APBN) and local government funds (APBD) were applied together which
3 Including all River Infrastructure Maintenance (RIM) expenditures.
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caused administrative difficulties during implementation. Parallel financing separated
the central and local budget processes. After the change, disbursement increased
significantly. The change was approved by the management and incorporated in the
DCA amendment of 2009.
1.7.4 Changes in implementation arrangements. Following the issue of Government
Regulation 38/2007, the responsibility for guidance to WUAF was changed from MoPW to
MoA. This had only budgeting consequences as MoA was already fully engaged in the
implementation process. This minor change was approved by management through the
supervision aide memoire.
1.7.5 Changes in scope and scale. The scope of activities remained the provincial and
district water resources and irrigation agencies and their river basins and irrigation systems.
National basins and systems were excluded from the project after the new water resources law
UU 7/2004 because of the lack of downstream regulations on management arrangements for
national basins. The geographic scope of activities increased during the implementation of the
program and was approved by management through the supervision aide memoires:
The number of provinces included increased by 2 to 14 with the inclusion of Aceh and the splitting of South Sulawesi into South and West Sulawesi;
For the Basin Water Resources Management component, the initial number of 42 basins grew to 54 basins due to re-delineation of the river basin boundaries in 2006;
For PIM the number of participating districts (kabupaten) grew from 70 initially to ultimately 99 due to splitting of 6 participating districts and the introduction of 23
new districts in 2009 for initial introduction of the reform only.
1.7.6 The above changes also affected NTB-WRMP. In addition, during implementation
increased attention was given to watershed conservation, which was an issue of particular
relevance to NTB, but of less crucial interest to most of the 12 provinces covered by WISMP.
2. Key Factors Affecting Implementation and Outcomes
2.1 Project Preparation, Design and Quality at Entry
2.1.1 Soundness of Background Analysis: WISMP was an extension and consolidation of
the broad and coherent support the Bank provided from 1997 onwards. This support
emphasized institutional development. It took both the form of gradual introduction of new
administrative and regulatory mechanisms at local and national government levels, and the
extensive piloting thereof in the field. Even after the issuance of proper “facilitating”
national-government regulations, few local governments were able to act upon them. Water
users, and especially farmer irrigators, were ill prepared to assume their new responsibilities.
Progress was slow since the local governments, newly empowered by the 1999 Regional
Autonomy Laws, and civil society-based organizations had to adjust and develop the requisite
local consensus and absorb the new opportunities.
2.1.2. JIWMP first introduced and piloted novel irrigation management arrangements on
Java and notably set up, and “coached” a large number of autonomous, self-governing
Federations of Water User Associations (WUAFs) of irrigators. JIWMP also introduced and
supported River Basin Management Units under provincial governments (Balai PSDA) and
Water Resources Management Committees to foster integrated resource management and
enhance accountability. In parallel, WATSAL built on this new body of field experience, and
supported the development of a broad-based framework of policy, legal, regulatory and
administrative reforms at national and local levels. Thereafter, IWIRIP replicated these
reforms in seven provinces outside Java, whilst continuing support in the Java provinces. The
pilot reforms under JIWMP and IWIRIP had been successful as demonstrated in a
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representative household survey completed in April 2003. They appeared robust after four
solid years of field implementation, and the gradual consolidation of the new legal and
regulatory frameworks at the national level. These pilot areas covered approximately 235,000
ha in 63 kabupatens in 12 provinces.
2.1.3. WISMP Phase I was the response to the challenges of the reform implementation and
a consistent and systematic extension of this prior support, whilst offering the opportunity to
further improve and adapt the institutional designs to Indonesia‟s diversity. Project
preparation and design was therefore firmly grounded in a wealth and depth of prior
experience and piloting. The whole WISMP program was sensibly structured as a three-
tranche, 12-year APL, which ensured the longer period of continued financing required with
benefits not only in continuity but also greater flexibility.
2.1.4 Assessment of Project Design. The project development objectives (PDO) were well
chosen and appropriate, stressing better water allocation and water conservation, better sector
governance, and increased agricultural productivity and improved irrigation performance. The
division of the project into two main components, one mainly supporting change in overall
management and planning institutions and the other looking at participative irrigation
management and strengthening of Water User Associations and Federations (WUAs/WUAFs)
struck a good and sensible balance. However, project design was too complex and ambitious
in a number of respects, although such design may well be justified for an institutional reform
oriented operation of this nature: (a) the project‟s geographic coverage extended to 12
provinces and included 70 kabupatens4; (b) the project supported a wide range of reforms and
initiatives through some 9 sub-components; (c) project organization was also complex,
involving four ministries, namely the Ministry of Public Works, formerly the Ministry of
Settlement and Regional Infrastructure (Kimprawil), the Ministry of Home Affairs (MoHA),
the Ministry of Agriculture (MoA) and the Ministry of Environment (KLH). Implementation
arrangements involved setting up Project Management Units (PMU) and Project
Implementation Units (PIU) for each of the participating Ministries at each of the three levels
– national, provincial and kabupaten; (d) the project was co-financed by the Government of
Netherlands and the associated NTB-WRMP project parallel financed by the European
Union.
2.1.5 The project scope, both geographically and in the range of activities, supported
imposed a heavy burden on both project management and Bank supervision. Setting up the
many PMUs and PIUs required significant new recruitment and created difficulties in getting
staff of adequate qualification and experience. Overall guidance was provided by a National
Steering Committee (on Water Resources) chaired by the National Development Planning
Agency (Bappenas) with the main responsibility for implementation resting with the
Directorate General of Water Resources (DGWR) of Kimprawil and the participating
provincial and kabupaten governments. The decentralized approach adopted by the project
and Government‟s fiscal decentralization helped implementation. Adequate regard was paid
to Bank safeguard policies for environmental and social concerns.
2.1.6 Government commitment: The overall WISMP program and the WISMP Phase I
project constituted a major plank in the Government (GoI) policy of decentralization. GoI had
issued the new decentralization legislation covering administrative regional autonomy (Law
22) and fiscal balance (Law 25) in 1999. These major sector reforms were to be implemented
through the Five-Year Development Strategy (Propenas) which became law in 2000. At
project appraisal, GoI had completed the most significant parts of the Water Resources
Reform Program on which WISMP was based. All the 12 provinces and their constituent
4 From 2009 onwards, 14 provinces and 99 kabupaten
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kabupaten had 2 to 4 years of piloting river basin management and participatory irrigation
management, and had started reforms at the local government level. 63 out of the 70
kabupatens had already adopted the irrigation reform principles and were participating in the
JIWMP and IWIRIP programs. In terms of river basin management, some 23 River Basin
Management Units (Balai PSDA) had been established in all the river basin territories (SWS)
of Java and a further 10 had been formed in the Outer Islands. The WISMP program and the
Phase I project were therefore at the heart of a major GoI policy initiative. Weak aspects of
government commitment were the more than two years delay in WISMP loan effectiveness,
the inability to introduce legislation to enable cost recovery and frequent late budget releases.
The two-year delay in loan effectiveness was due to the government‟s decision to await the
issuance of the new water law in 2004, which led to no disbursement before 2006.
2.1.7 Stakeholder commitment: Interest in improving irrigation system infrastructure and
management grew with the advances made by earlier projects. Local government, civil
society, farmer groups including WUAs and farm families were all enthusiastic about the
project. However, the speed with which this underlying commitment could be put into
practice depended on the time taken for issuing of the necessary laws and regulations at
national, provincial and district (kabupaten) levels.
2.1.8 Risks: The PAD identified a large number of risks. These included (a) the possibility
that the sector agencies would dominate the public consultation process; (b) that inadequate
priority and resources would be given to collect information for management information
system (MIS) establishment and M&E activities; and (c) that insufficient priority and support
would be given to the fiscal sustainability and cost recovery aspects.
2.1.9 The first of these risks has been successfully mitigated during project implementation
by encouraging the participation of water users and civil society. The other risks duly became
apparent during implementation. With such a large, complex and innovative project coming at
a time when political changes and strategy still remained to be consolidated there were clearly
many uncertainties and numerous risks to be faced. Three important risks were not listed: (a)
risk of implementation delays due to lack of the necessary laws, decrees or other legal
instruments to allow implementation to proceed systematically, particularly since in most
cases enabling legislation was required at the highest level in order to get – “by cascade” - the
necessary instruments at Ministerial, Provincial and Local Government levels; (b) delays in
release of government annual budget at the central and local levels, which has been a chronic
problem for many years; and (c) the over-frequent transfer of staff, which is also a
longstanding problem and one which has a very negative impact on building institutional
capacity, dissipates training impact and slows implementation. Considering the number of
uncertainties and challenges the project faced in implementation, a substantial overall risk
rating would have been more appropriate.
2.1.10 QAG “Quality at Entry”. The project was reviewed by the QAG and received an
overall rating of satisfactory.
2.1.11 NTB-WRMP did not share the experience of long involvement in water resources and
Bank projects and the same depth of background analysis. The fact that the province had
missed out on earlier assistance was one of the reasons for EU interest in funding. To enable
the project to run concurrently with WISMP it had to be prepared quickly and with a more or
less identical design as WISMP. There do not appear to have been very substantial inputs of
government officers in project identification and appraisal. The project assessment was
carried out on the basis of a consultant assessment report, and there was not a formal appraisal
mission nor a project appraisal document. As a result, the design in terms of activities to be
undertaken was identical to those included in WISMP and were not tailored to the particular
needs of NTB, especially in regard to the need for catchment rehabilitation and management.
Also some aspects of the design were inadequate, most noticeably in relation to M&E. There
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was a serious lack of definition of appropriate key performance indicators, and there was no
baseline survey. Consequently whatever M&E data was eventually collected provided little
help to project management since the results could not be interpreted5.
2.1.12 The project design was almost identical for WISMP 1 and NTB-WRMP. Under the
WISMP Program, the first phase project focused largely on institutional change and capacity
building. In contrast, NTB-WRMP‟s targeting of agricultural productivity and income
improvement, although not officially part of the project objectives, appears overly optimistic.
The degree of commitment of both the provincial and local governments and other
stakeholders on the other hand appears to have been equal to or greater than that for WISM