ODA Loan Project Mid-Term Review 2007

Evaluator: Hajime Onishi (Mitsubishi UFJ Research & Consulting)Field survey: April 2008
Project title: The Republic of Indonesia “Decentralized Irrigation System Improvement Project” (L/A No. IP-509)[Loan Outline]
Loan amount/Contract approved amount/Disbursed amount : 27,035 million yen/23,346 million yen/16,726 million yen (as of the end of March 2008)
Loan agreement: October 2002 (5 years after L/A)
Original completion date
: June 2009
Revised completion date
: December 2009
Loan expiry date
: February 2012
Executing agency: Directorate General of Water Resources (DGWR), Ministry of Public Works
Operation and maintenance agency: River Basin Water Resource Management Unit (Barai) for primary and secondary canals of over 3,000ha,
Provincial Irrigation Office for primary and secondary canals of 1,000ha～3,000ha, Kabupaten (District) Irrigation Officefor primary and secondary canals of less than 1,000ha and Water Users Association (WUA) for tertiary canals
Selection criteria for mid-term review: Coordination (among activities facilitated by NGOs, regular activities of DGWR, Ministry of Public Works and local
governments and activities or funding by other donors for capacity building for and dissemination of water management
under the project. Collaboration with NGOs etc.)
This mid-term review focuses on evaluation of Ponre-Ponre irrigation (South Sulawesi), Malaka irrigation (East Nusa Tenggara) and Paguyaman irrigation (Gorontalo).
[Project Objective]
To increase rice production by constructing and rehabilitating irrigation facilities and providing assistance for better irrigation water management at 8 provinces in Eastern
Indonesia, thereby contributing to poverty alleviation in the region.
Consultant: Nippon Koei (Japan)/ PT. DDC CONSULTANTS, PT. BINA KARYA, PT. GEO ACE, PT. KWARSA HEXAGON, PT. METTANA ENGINEER, PT. PUSATPENGEMBANG, PT. TATA GUNA PATRIA, PT. TRITUNGGAL P. KO, WIRATMAN & ASSOCIATE (Indonesia)
Contractor: Hazama Corporation (Japan), PT. ADHI KARYA, PT. BRANTAS ABIPRAYA, PT. PEMBANGUNAN (Indonesia)[Mid-Term Review Result]
Item[Relevance]

Appraisal (September. 2002)(1) National policy level
Agriculture, food and irrigation sectors are designated asimportant areas for economic recovery and sustainableeconomic growth under the National Development Program(Propenas2000-2004). Specifically, the program for improving

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review(1)
National policy level
In the Mid-Term National Development Plan (RPJM2004－ 2009), revitalization ofagriculture is placed as a strategic target for ① support of domestic economic growth and② realizing self-sufficiency of food. As a measure to revitalize agriculture, ① capacity
building of farmers and strengthen support organization, ② secure self-sufficiency of food,
1

Item

Appraisal (September. 2002)
food security and the program for developing and managing
water resources were established as agricultural policy. The
program for improving food security aims at improving riceproduction and stockpiling by expanding cropland andencouraging effective use of idle field or land of low
productivity. The program for developing and managing water
resources aims at increasing food output and promoting
agri-business by expanding water resources, efficient irrigation
system management and improving productivity. As for
irrigation
systemmanagement,water
management
organizations led by farmers have to work with provincial anddistrict governments to establish the right to water for fair
distribution and establish appropriate water administrative
body.
Disparities among different regions of the country are
pointed out as a problem of irrigation sector in Development
Policy, Strategy and Program being formulated now. It
specifically targets development of water resource andirrigation facility in Eastern Indonesia.
(2) Planning level
Eastern Indonesia is the least developed part of the country
whose per capita GDP is 70% of national average and people
living under poverty line is 29.8% (2000) compared tonational average of 24.1% (2000). Development is needed in
the area to bridge disparity in the country. Since 60% of
population in the area are engaged in agriculture, developmentof agriculture is expected to mitigate the problem.
Even though precipitation of the area is lower than thenational average, development of irrigation facilities isdelayed. Proportion of irrigated farmland to total farmland isjust 6%～8% at eastern region of Indonesia, namely, North

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review③ improve agricultural productivity and ④ improve competitiveness and value added are
advocated.
As one specific measure to achieve the above, a program for development andmanagement of irrigation network, wet area and canals is being implemented. The programaims at ① activation of farmers, ② strengthening management and operation organizationof irrigation facilities and ③ promoting participation of farmers.
President Yudhoyono announced a plan to improve self-sufficiency of rice by reducing
import of rice and increasing domestic production, from output of 33 million tons (polishedrice basis) in 2006 to 37 million tons in 2008.
Agriculture sector in Indonesia accounts for 13.4% of the total GDP (2005) and workforce engaged in agriculture amounts for 44% of the total workforce in the country (2005).
Agriculture remains the core industry of the country and positioned as the most importantsector to secure sustainable economic growth.
In light of the above, this project remains extremely relevant at national policy level since
ex-ante evaluation till today.

(2) Planning level
Eastern Indonesia remains the least developed part of the country with population underpoverty line at 18.8%(2004), exceeding national average of 16.6%(2004).
As for self-sufficiency of rice, 100% was once achieved in 1984 but partially dependenton imports thereafter until 2003, when 100% was recovered and sustained for 3 years.
Then in 2006, self-sufficiency ratio was reduced to 94% and approximately 1.9 million tons 1of rice was imported.
Production volume of rice reached 35 million tons (polished rice basis) in 2003 due togood weather, but on decline trend thereafter down to 33 million tons (polished rice basis) in2006. On the other hand, since population of the country kept increasing for the past 10 years
by 1.2% or more, demand of rice is expected to increase continuously in the future.

1

The volume is equivalent to more than one forth of India’s annual rice exports (6.7million tonnes in 2004 according to FAO data) , the world’s second largest exporter of rice. Rice import by Indonesia is by no means
marginal to the global rice export market. Further, due to world-wide surge of rice price since 2nd half of 2007, India and Vietnam, the 2nd and 3rd largest exporters of rice announced restriction of rice export in 2008, adding
to the destabilization of international rice market (prevailing view on the food crisis including rice is that it is not limited to short-term problem but possibly lasts long due to active demand in emerging countries like China
and India). Given the circumstances, increasing self-sufficiency rate of rice in Indonesia is of urgent need and relevance of the project is extremely high.

2

Item

Appraisal (September. 2002)
Sulawesi, Central Sulawesi, Southeast Sulawesi and East Nusa
Tenggara. This is extremely low compared to 47% in Java
Island, where 42% of the country’s rice paddy is concentrated.
Development of irrigation facility is extremely important foreconomic development and poverty reduction in eastern regionof Indonesia.
As 20,000ha of farmland area disappearing every year frommain crop production area of Java Island due to urbanizationand industrialization, irrigation development in eastern part ofthe country for rice production increase is important.

[Effectiveness](1) Operation and Effect Indicators① Quantitative effects
Present value (2008) of respective operation and effect indicators and target (2014) are as
follows.

(1) Operation and Effect Indicators① Quantitative effects

Indicators

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review
In light of the above, this project is extremely relevant at planning level, since it cangreatly contribute to economic development and poverty reduction in eastern Indonesia andlead to improve self-sufficiency of food in the country.

Ex-ante evaluation

Target(actual value in(target in 2014)

Indicators

2001)

Ex-ante evaluation

Mid-term review (asTarget(actual value inof 2008)(2014)

3,749

2001)

Ponre-Ponre irrigation (new)Ponre-Ponre irrigation (new)Cultivated area by crops (ha)Cultivated area by crops (ha)Rice (rainy season)

3,339

4,313

Rice (rainy season)

2,400

3,000

Rice (dry season)

N/A

2,157

Rice (dry season)

N/A

N/A

2,157

Corn

N/A

2,157

Corn

N/A

500

2,157

Mung bean

266

1,294

Mung bean

266

N/A

1,294

Peanut381

2,157

Peanut

381

1,000

2,157

N/A

15.6 (7/45)

100

Rate of water users
associations formulated (%)

41.67

Rate of water users

100

associations formulated (%)

Yield of major crops per unit area (ton/ha)

Yield of major crops per unit area (ton/ha)

Rice (rainy season)

2.00

3.50

Rice (rainy season)

2.00

3.00

3.50

Rice (dry season)

3.20

3.50

Rice (dry season)

3.20

N/A

3.50

Corn

N/A

2.00

Corn

N/A

1.00

2.00

Mung bean

0.25

1.20

Mung bean

0.25

N/A

1.20

Peanut0.35

1.40

Peanut

0.35

1.00

1.40

871

3,326

5,193

Net annual average farmincome (1,000Rp/year)871

Net annual average farm

5,193

income (1,000Rp/year)

3

Item

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review

Appraisal (September. 2002)
Malaka irrigation (extension)

Malaka irrigation (extension)

Cultivated area by crops (ha)Cultivated area by crops (ha)Rice (rainy season)

2,146

10,000

Rice (rainy season)

2,146

Rice (dry season)

406

2,667

Rice (dry season)

406

Corn

Corn

6,000

1,430

2,667

2,170 (rainy season)

N/A

2,333

Mung bean

N/A

2,000

Mung bean

N/A

768

2,000

PeanutN/A

2,500

Peanut

N/A

N/A

2,500

33.33

83.9 (52/62)

100

Rate of water users
associations formulated (%)

33.33

Rate of water users

100

associations formulated (%)

Yield of major crops per unit area (ton/ha)

N/A

2,300

1,180 (dry season)

2,333

Yield of major crops per unit area (ton/ha)

Rice (rainy season)

2.30

2.50

Rice (rainy season)

2,30

3.00 1)

2.50

Rice (dry season)

2.30

2.60

Rice (dry season)

2.30

3.00 1)

2.60

N/A

2.20

Mung bean

N/A

0.84

Mung bean

N/A

0.87 1)0.84

PeanutN/A

1.30

Peanut

N/A

N/A

1.30

822

N/A

7,377

Corn

Net annual average farmincome (1,000Rp/year)

822

Corn

Net annual average farm

7,377

income (1,000Rp/year)

Paguyaman irrigation (new)N/A

1.60 (rainy season)
1.20 (dry season)

2.20

Paguyaman irrigation (new)Cultivated area by crops (ha)Cultivated area by crops (ha)Rice (rainy season)

2,160

2,713

Rice (rainy season)

2,090

3,529

6,880

Rice (dry season)

N/A

2,713

Rice (dry season)

N/A

512

6,880

Corn

188

N/A

Corn

188

1,942

N/A

Mung bean

N/A

N/A

Mung bean

N/A

N/A

N/A

PeanutN/A

N/A

Peanut

N/A

N/A

N/A

N/A

0.0 (0/190)

100

4.40

Rate of water users
associations formulated (%)

75

Rate of water users

100

associations formulated (%)

Yield of major crops per unit area (ton/ha)

Yield of major crops per unit area (ton/ha)

Rice (rainy season)

3.00

4.40

Rice (rainy season)

3.00

3.50-4.00

Rice (dry season)

N/A

4.60

Rice (dry season)

N/A

N/A

4.60

Corn

1.00

N/A

Corn

1.00

3.00

N/A

Mung bean

N/A

N/A

Mung bean

N/A

N/A

N/A

PeanutN/A

N/A

Peanut

N/A

N/A

N/A

1,024

3,044

Net annual average farm

4

Item

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review

Appraisal (September. 2002)
income (1,000Rp/year)

Net annual average farmInternal rate of return (total 27 sub-projects)

income (1,000Rp/year)

EIRR (Economic Internal Rate of Return)21.33%

1,024

6,452

3,044

Internal rate of return (total 27 sub-projects)
EIRR (Economic Internal Rate of Return)21.33%

Source: Answers to questionnaires from DGWR, Ministry of Public Works and the consultant
Note 1): These values already exceed original targets, and agricultural office of Belu responsible for planting
guidance for Malaka irrigation project already revised target. However the target was not agreed by DGWR,
Ministry of Public Works, execution agency of this project as of yet. Because of this, original target was
shown in this report.

Ponre-Ponre irrigation
・ (Present values of indicators and feasibility of quantitative effects) Although the projectprogress is a little behind the schedule (see “efficiency” for the reason and details of thedelay), so far, present values of indicators show a stable growth. Slow rate of water users
associations (WUA) formulated is a bit worrisome, but once financing by Indonesian
government for capacity building and formulation of WUA is secured (detailed in “(3)Factors influencing sustainability”), hurdle for target achievement could be lowered.
Since Ponre-Ponre irrigation is a newly developing project and rain-fed rice paddy area
before the project implementation was 2,400ha, baseline value of rice cultivated area at
ex-ante evaluation should be corrected to 2,400ha. Although there were some voluntaryorganizations of farmers existed before the project, they were not official WUA(approved by governor and court). Because of this, the rate of WUA formulated(41.67%) at ex-ante evaluation is considered an error and therefore, not valid as baseline
value.
・ (Change of target values) Target irrigated area was reduced to 3,749ha as a result of
detailed assessment on potential irrigation areas via special survey equivalent to F/S andsocialization activity (see “(3) Factors influencing sustainability” for details of theactivity). With this, target area for rice cultivation (rainy season) was also reduced.
Malaka irrigation
・ (Present values of indicators and feasibility of quantitative effects) Civil works werecompleted in March 2008 almost in line with the schedule and the current values ofindicators show quite a steady growth.
・ (Change of target value) Realistic targets were set as a result of socialization activity etc.
conducted until 2005 on the production capacity of local farmers and actual unit yield.
Actual unit yield of rice and Mung bean already surpassed the target at the time of
mid-term review. According to Kabupaten (District) agricultural office (Dinas Pertanian
5

Item

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review
Kabupaten), thanks to the dissemination of SRI(System of Rice Intensification: to bedetailed hereinafter), unit yield of rice and Mung bean are expected to increase to
5.0t/ha(both rainy and dry seasons) and 1.2t/ha, respectively by 2014.

Appraisal (September. 2002)

Paguyaman irrigation
・ (Present values of indicators and feasibility of quantitative effects) Due to major delay inproject implementation (see “efficiency” for reasons and details of the delay), the current
values of indicators are quite low against the target. Just like Ponre-Ponre irrigation,
Paguyaman irrigation is a newly developing project and rain-fed rice paddy area before
the project was 2,090ha, thus baseline value of rice cultivated area at ex-ante evaluation
should be corrected to 2,090ha. Similar to Ponre-Ponre irrigation, although there weresome voluntary organizations of farmers before the project, there was no official WUA(approved by governor and court). Because of this, the rate of WUA formulated (75%) at
ex-ante evaluation is considered an error and therefore, not valid as a baseline value.
・ (Change of target value) Originally, the project target area was limited to the left side ofa river but after review of the development area via socialization activity, the right sideof the river was newly incorporated and the targeted rice cultivated area dramaticallyincreased.
② Qualitative effects(Development of irrigation facilities and improvement inland use are expected to increase rice production and incomeof farm households. As a result of this,) the project is expected
to alleviate poverty in villages of provinces and districts with ahigh poverty rate.

②

Qualitative effects
With the project, irrigation facilities are developed in 8 provinces of eastern region ofIndonesia that realizes stable water supply system and intensive land use, which is expected
to dramatically increase agricultural production including rice.
In addition, if food price remains stable or increases, income of beneficiary farmhouseholds will increase as their agricultural production increases. If an increase inagricultural income brings excessive capital to farm households, additional investment inagricultural business or creation of new business will be enabled as a secondary economic
ripple effect. At the same time, income levels of the whole target area are expected to rise,
which naturally brings about mitigation or reduction of poverty.
Dissemination of SRI (System of Rice Intensification), promoted under the project candrive the above effect. SRI is “low input high yield rice farming technology” started to be
introduced since 2002 under Small Scale Irrigation Management Project (3) (SSIMP-III),
that proceeds this project. SRI realized 1.85 times the unit yield and 7.2 tons/ha on averagein Indonesia, while reducing consumption of irrigated water by 40% and production
expenses by 25%.
6

Item

Appraisal (September. 2002)(2) Factors that may influence the effectiveness and impact① Collaboration with NGOs, local universities etc.
In addition to providing trainings to farmers constituting
WUA and local government employees that supervise them,
support socialization activities with NGOs etc. to enhanceawareness of farmers on the need to establish WUA.

②

Coordination with grant-in-aid project/ technicalcooperation
As part of development survey by JICA, “irrigation
association promotion survey” was conducted (FY1999 ～2001) aiming at transferring control of irrigation facilities to
WUA. Also, Indonesian government requested technicalcooperation in the form of project for training/instruction of

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review(2) Factors that may influence the effectiveness and impact① Collaboration with NGOs, local universities etc.
There have been collaborations with NGOs to help establish WUA. Under sub-project ofPonre-Ponre irrigation, the project employed local NGO called LEPPSEM(Lembaga
Pengembangan dan Pembinaan Sosial Ekonomi Masyarakat) to implement socialization
activities including assistance to establish WUA ( ① publicize the benefit of WUA
activities, ② design tertiary canals, ③ convince local farmers to join WUA and issue
agreement form, ④ assist the foundation of WUA and its official registration to local
government in charge and ⑤ capacity building of leaders etc. of WUA). Various activities(holding PCM workshops etc. to members of WUA) seem to have taken place associalization activities in partnership with district irrigation office (Dinas Pengairan
Kabupaten) and district agricultural office (Dinas Pertanian Kabupaten).
Government of Indonesia has a system to hire former employees of district irrigation
office as agricultural extension worker called Tenaga Pendamping Masyarakat(TPM),
instead of NGOs for the purpose of capacity building of WUA. Although employment of
TPM was not confirmed in case of the government (river basin water resource management
unit and district public work office) responsible for the 3 subprojects, it is consideredeffective in solving lack of personnel at related government institutions as explained below.
Thus the effective use of TPM should be considered in the future (In addition, need toconsider how to allocate fund for hiring TPM out of district government budget).
Also, it is necessary to transfer all sorts of activities for capacity building of WUA
currently conducted as part of consulting service, to local government (district irrigation
office and agricultural office) so that they can engage in such activities as part of regularduties. Utilization of abovementioned TPM is effective in promoting the process.
According to an agreement (M/D) exchanged between JBIC and Indonesian government
when signing the loan agreement, there was a mention about possibility of partnership withlocal universities, but no collaboration was confirmed based on hearing from DGWR,
Ministry of Public Works and the consultant.
② Coordination with grant-in-aid project/ technical cooperation
Although technical cooperation (JICA “the Empowerment of Water Users Association
Project”) was conducted in the Bili-Bili Irrigation Project (IP-479) area until March 2007,
there seems to have been no specific collaboration among them.
No coordination with grant-in-aid project was confirmed.

7

Item

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review

Appraisal (September. 2002)
WUA. Thus it is necessary to closely coordinate with thesetrends for capacity building of WUA.
③

Collaboration with other donors
Sadang of South Sulawesi is the area the World Bank
designated to provide capacity building assistance.
Strengthening operation and maintenance of irrigation
facilities in the area will be conducted as part of capacity
building project of the World Bank. Close contact with theWorld Bank to confirm progress status of their project andpreparedness of operation and maintenance system isnecessary.

③ Collaboration with other donors
There has been no collaboration with the World Bank in Sadang district. There is nocollaboration or duplication of project scope with “Water Resources & Irrigation Sector
Management Program” or “Third Kecamatan Development Project –KDP- (Phase 2)”
currently implemented by the World Bank.
On the other hand, “Participatory Irrigation Sector Project (Loan No.
2064(SF)-INO/2065-INO, to be continued until 2011)” implemented by ADB aims atbuilding capacity of government employees working at irrigation sector. While there is no
duplication of scope between the project and DISIMP, integrated collaboration andpartnership is desirable.
Indonesian government used to implement project called PTGA(Proyek Tata Guna Air)
aimed at strengthening irrigation water management skills of government employees andfarmers (detailed hereinafter). The project was funded by Indonesian government and there
is no fact that training expenses were funded by any donors (World Bank, ADB etc.).

④

Impact on the environment
Under the project, the executing agency will review
environmental assessment and conduct additional assessment
as necessary with support of the consultant to take measures tominimize negative impact on the environment.

④

Impact on the environment
Environmental Impact Assessment(EIA) was properly implemented and consultant isclosely monitoring EIA procedures (e.g. EIA review of Ponre-Ponre irrigation wascompleted in 2004). There was no negative impact unanticipated during ex-ante evaluationand no additional environmental assessment was conducted. Accordingly, there is no
negative influence to the effectiveness or impact of the project.

⑤⑤

Land acquisition/relocation of residents
Out of 9 subprojects requiring land acquisition, only
Ponre-Ponre irrigation requires relocation of residents.
Interviews to the representatives of 33 relocated households
were conducted during appraisal and confirmed that theresidents generally agreed to relocation. After the appraisal,
executing agency received agreement from the representativeon relocation in March 2002.

Land acquisition/relocation of residents
Relocation of residents in Ponre-Ponre irrigation was smoothly completed in 2004 asscheduled. Ultimately 30 households were relocated. Resident relocation was not required
for the rest of the subprojects. Only small areas of land acquisition were required for theconstruction of primary and secondary canals in general, not expected to affect realization ofeffects or impact.

8

Item

Appraisal (September. 2002)(3) Factors influencing sustainability① Operation and maintenance system
Based on the presidential decree no.3 in 1999, theresponsibility for operation and maintenance of irrigation
facilities including main and end canals is to be transferred to
WUA. In the future, operation and maintenance of primary
canals will be placed under the joint control of WUA
federation and district government, secondary canals under
WUA federation and tertiary canals under WUA.

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review(3) Factors influencing sustainability① Operation and maintenance system
Operation and maintenance system for irrigation facilities established by Government
Regulation No.20 Year 2006 etc. is shown in the table below.
Table Operation & maintenance system of irrigation facilities based on
Government Regulation No.20
Area ofirrigation

Type of
O&M
O

3,000ha or
more

R

H

Primary Canals
Funded byCentralgovernment
Centralgovernment
Centralgovernment

Undertaking
Authority
Balai1)
Balai1)
Balai1)

Secondary Canals
Funded byCentralgovernment
Centralgovernment
Centralgovernment

Provincial
O

Province 2)

irrigation

3,000haProvince 2)

irrigation

irrigation

irrigationor less

District 3)

irrigation

irrigation
officeWUA

WUA

irrigation

irrigation

WUA

Determined
by WUA 4)

irrigation

WUA

WUA

irrigation

irrigation
officeDistrict
District 3)

Balai1)

District
District 3)

officeH

by WUA 4)

WUA

officeDistrictR

Determined

District
District 3)

office1,000ha

WUA

officeDistrict
District 3)

Undertaking
Authority

Provincial
Province 2)

officeO

Balai1)

officeProvincial
Province 2)

Balai1)

Provincial
Province 2)

officeH

Funded by

officeProvincial
R

Tertiary Canals

Provincial
Province 2)

office1,000～

Undertaking
Authority

Determined
by WUA 4)

WUADistrict
District 3)

irrigation

WUA

officeSource: Government Regulation of Republic of Indonesia Number 20 Year 2006 About Irrigation etc.
O: Operation of facilities and equipment, R: Regular maintenance of facilities and equipment (including simple repair), H:

9

Item

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review

Appraisal (September. 2002)

Heavy repair etc. of facilities and equipment
Note 1): River Basin Water Resource Management Unit. Established in January 2007.
Note 2): Include both subsidiary from central government and provincial budget.
Note 3): Include both subsidiary from central government and district budget.
Note 4): Funding for operation and maintenance of tertiary canals is left to the discretion of respective WUA (in addition
to collecting water users fee, volunteer labor services for cleaning irrigation facilities is allowed as an option). Financial
assistance can be requested to Balai, provincial irrigation office and district irrigation office for heavy irrigation repair.
(Source: hearing from DGWR of Ministry of Public Works)

Operation and maintenance system is basically set in the Government Regulation No.20
Year 2006 according to the area of irrigation as shown in the table above. However, it allows
exceptions such as “lower organizations are entitled to be supported by the upper authorities
if a task is beyond their financial and/or management capability” that enables flexible
operation despite the possibility to complicate share of responsibility among relevantorganizations (e.g. if a task is beyond WUA’s management capacity, its district government
can assume responsibility for the task. If the task is beyond the district government’s
capacity, its provincial government can assume responsibility for the task).
Table below shows the future operation and maintenance system for subprojects inPonre-Ponre, Malaka and Paguyaman (the irrigated areas of these subprojects are over
3,000ha) (based on hearing from related organizations. Civil work is now underway inPonre-Ponre and Paguyaman as explained hereunder. Civil work was completed in March
2008 in Malaka).
Operation and maintenance systems of Ponre-Ponre and Paguyaman are assumed to bealmost in line with the system set in the Government Regulation No.20 Year 2006, while in
Malaka, in the context of the geographic condition of the project site and financial difficulty
and the lack of personnel and material resources of WUA, its district government is in chargeof operation and maintenance for all canals including tertiary canals, under the supervisionof Balai Kupang.

10

Item

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review
Table Operation & maintenance system of irrigation facilities in subproject areas

Appraisal (September. 2002)

Tertiary Canals
Undertaking
Funded by
Authority
WUA
Ponre-Ponre
CentralCentralDetermine
Balai
Balai
WUA
irrigation
GovernGovernd by WUA
Makassar 1)
Makassar 1)
WUA／Balai(3,749ha)
ment
ment
H
MakassarO
CentralPublic Work
CentralMalakaCentralPublic Work
Public Work
GovernOffice inGovernme
irrigation
GovernOffice inR
Office in Belu 2)
2)
2)
ment
Belu
nt
(6,000ha)
ment
Belu
H
O
WUA
Paguyaman
CentralCentralBalai
Balai
DetermineR
WUA
irrigation
GovernGovernGorontalo
Gorontalo
d by WUAWUA／Balai(6,880ha)
ment
ment
H
Gorontalo
Source: Hearing from Balai Gorontalo, Balai Makassar, Balai Kupang and other relevant institutions
O: Operation of facilities and equipment, R: Regular maintenance of facilities and equipment (include simple repair), H:
Heavy repair etc. of facilities and equipment
Note 1): South Sulawesi Province is planned to be in charge of operation and maintenance of primary and secondary
canals in the future (source:hearing from Balai Makassar).
Note 2): The Public Work Office (Dinas PU Kabupaten Belu) in Belu in charge of Malaka project is responsible for
operation and maintenance of main-tertiary canals under the supervision of Balai Kupang (source: hearing from Balai
Kupang )Subproject

Type
of
O&M
O
R

Primary Canals
FundedUndertaking
byAuthority

Secondary Canals
FundedUndertaking
byAuthority

Current system shown in the above table is “flexible for proper operation and maintenanceof irrigation facilities depending on the capacity of responsible local government and WUA
and any other constraints”. However, WUA should be responsible for light duties such as
daily operation and regular maintenance (cleaning of canals etc.) of tertiary canals as set in
the Government Regulation, in order to promote a sense of ownership within WUA. As for
Malaka, it is desirable for district government to transfer responsibility of operation andmaintenance to WUA in a long run, depending on the progress status of capacity building.
Both Ponre-Ponre and Paguyaman are in the process of formulating WUAs (see“effectiveness” in this report for the ratio of formulation). Depending on the progress of
capacity building of WUAs in the future, higher organization like district government mightneed to intervene in operation and maintenance of tertiary canals just like the case in Malaka.
It is necessary to closely monitor operation and maintenance system in the future.
Human resources are insufficient in both Paguyaman and Malaka subprojects (e.g. there
are 20 personnel at Balai Gorontalo. According to the Balai, one personnel can adequately
take care of 100ha or so). How to secure human resources under budget constraints, detailed
11

Item

Appraisal (September. 2002)② Technical capacity in operation and maintenance
Assist establishment and strengthen functions of WUAs to
be mainly responsible for operation and maintenance.

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review
hereinafter is an issue to be tackled in the future (hiring TPM is considerable).
② Technical capacity in operation and maintenancePrimary and secondary canals
As stated earlier in this report, Balai, Provincial Irrigation Office and District Irrigation
Office are basically in charge of operation and maintenance. Balai (Ponre-Ponre andPaguyaman) and District Public Work Office (Malaka) are responsible for operation andmaintenance of the 3 subprojects targeted in the survey. The operation and maintenance workis gate control, sediment removal, and weeding, etc which do not generally require highknowledge or skills.
Strengthening capacity of government employees to manage the project or maintain thefacility seems to have been promoted by PTGA (Proyek Tata Guna Air) project in the past,
but continuous effort for the capacity building is desired.
Note: PTGA project
Ministry of Public Works has implemented a project called PTGA (Proyek Tata Guna Air) since 2005 tostrengthen capacity of local government employees for project implementation and farmers for water
management via cascade system training 2 , but due to Government Regulation No.38 which became
effective in 2007, all sorts of capacity building activities like these were put under control of Ministry ofAgriculture. PTGA project is terminated by now (source: hearing from DGWR of Ministry of Public Worksand Balai Makassar).

Tertiary canals
As already explained, WUAs are basically in charge of operation and maintenance, except
for Malaka, where District Public Work Office in Belu is in charge due to various
restrictions. Implementation system of the Indonesian Government and involvement of the
project (the 3 subprojects) to strengthen the capacity of WUAs until today are shown in thetable below.
According to Government Regulation No.38 (established in 2007), capacity building of
WUAs is the responsibility of Ministry of Agriculture as already explained. However, since
it is in the middle of transition, Agricultural Office and Irrigation Office of local
governments as well as Balai are jointly providing training etc. for water management.
This project is engaged in the capacity building of WUAs in the form of ① assistance toformation and the capacity building of WUAs via NGOs/ICOs, ② instruction on farming
and water management training via SRI introduction and ③ training for operation andmaintenance of completed irrigation facilities. Overlap of aforementioned government
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Item

Appraisal (September. 2002)

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review
activities and the project is ② instruction on farming and water management training via
SRI introduction (in Malaka, in the process of SRI introduction Agricultural Office andIrrigation Office of Belu and Balai Kupang jointly worked to provide instruction on farming
and water management training etc. that contributed to improvement of skills of WUA
members).
Table Implementation system of Indonesian Government to strengthen the capacity of
WUAs and involvement of the project until today
Subproject(new／extension)

Implementation system of Indonesian Government tostrengthen the capacity of WUAs
Legal basis(Government
Actual system
Regulation No.38,(as of April 2008)
established in 2007)
Main rules:①Local Agricultural Office
Stipulate(Province or District), ②“responsibility ofLocal Irrigation Office
Ministry of(Province or District) and ③
Agriculture”
Balai jointly provide water
management training etc.
Detailed rules:(Actually, Local Agricultural
Stipulate “Activities
Office seems to be
are conducted jointly
coordinating for skilled
by Agricultural
employees of Balai or Local
Office (Dinas
Irrigation Office to provide
Pertanian) andtrainings of water
Irrigation Officemanagement1))(Dinas Pengairan) of
local government”

Involvement of the project to strengthen thecapacity of WUAs and activities conductedso far•

Implement socialization activities2)
for targeted farmers of the area via
NGO employed for the project•
Implement socialization activities2)
for targeted farmers of the area via
local experts3) employed for the
project
Malaka•Implement farming and water
irrigation
management training via SRI(extension)
introduction (jointly by District
Agricultural Office, District
Irrigation Office and Balai)•
Implement socialization activities2)
Paguyaman
for targeted farmers of the area via
irrigation
local experts3) employed for the(new)project
Source: Hearing from Balai Gorontalo, Balai Makassar, Balai Kupang and other relevant institutions and the consultant
Note 1): Hearing from Agricultural Office in Belu, East Nusa Tenggara and Agricultural Office in South Sulawesi
Note 2): Specific activities include ① PR of effectiveness of WUA activities , ② design of tertiary canals, ③
persuade farmers of the area to be members of WUAs and issue agreement format, ④formation of WUAs andassistance to their official registration to the local government and ⑤capacity building of leaders etc. of WUAs (source:
progress report etc.)
Note 3): Assign local experts to hire as many ICOs (Irrigation Community Organizer) as possible to implement various
activities
Ponre-Ponr
e irrigation(new)

On the other hand, as for subprojects in South Sulawesi (4 subprojects in total including
Ponre-Ponre), even though formation of WUAs, operation and maintenance training etc.
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Item

Appraisal (September. 2002)③

Financial status in operation and maintenance

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review
were continued via NGO/LEPPSEM association mentioned above until 2007, theirinvolvement to the project in FY 2008 and thereafter has become quite unclear sinceIndonesian Government cut budget for their activities (Government claims to conductcapacity building on its own and budget allocation for future capacity building of thesubprojects via NGO/LEPPSEM association is not allowed). Since Malaka is also in thesame situation, it is necessary to closely monitor the central government and Balai regarding
capacity building of WUA members.
Paguyaman does not have the problem. Instruction on farming and water management
training are expected to take place in full scale via SRI introduction as civil work progresses
in the future (considering hiring NGOs, according to the consultant).
③ Financial status in operation and maintenancePrimary and secondary canals
Since Ponre-Ponre and Paguyaman are in the process of irrigation construction andoperation and maintenance budget of responsible organizations (Balai) is yet to be allocated.
Balai Makassar in charge of Ponre-Ponre claims that it fully understands the importance ofPonre-Ponre irrigation and sufficient personnel and maintenance budget will be allocatedafter completion of the construction.
Central government has allocated 1 billion Rp (approximately 12 million yen) to theoperation and maintenance of Malaka in FY 2008 (source: Balai Kupang). Since 300,000 Rp(approximately 3,600 yen) per 1 ha is considered necessary as operation and maintenancecost (source: Balai Kupang), the budget is sufficient for planned farm development area of
2,870ha(accumulated total) at the end of FY2008. Further budget allocation is expected
toward the end of FY2014 when build-up period (7 years) ends, so that the budget canaccommodate to the target irrigation area of 6,000ha.
Tertiary canals
Procurement of funds for operation and maintenance of tertiary canals is left to thediscretion of respective WUAs. In addition to collecting irrigation fees from WUA members,
direct contribution such as “provision of labour for cleaning” is allowed. It is also possible torequest Balai, Provincial Irrigation Office and District Irrigation Office to provide financial
assistance for heavy repairs.
For example, irrigation fees charged by some WUA in Ponre-Ponre is 17,000 Rp for eachharvest. According to interviews to members and leaders of WUAs, “the fee is set afternegotiation among WUA members and the amount is therefore appropriate”.
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Item
Reference[Efficiency](1) Output

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review

Appraisal (September. 2002)(1) Output
Overall project①Increase in irrigation area: 99,250 ha →124,978 ha②Increase in the number of subprojects (scheme): 27 → 53
③Increase in the number of contract package: 28 → 64
(The above contract package includes 4 packages carried over from Small Scale Irrigation
Management Project(3)(SSIMP-Ⅲ))④Increase in consulting service M/M:500 M/M → 567 M/M(value after the second
amendment of contract, Professional A Expert only)(1) Output(a)Civil work
・Construction of irrigation canals
・Dam construction(b)Consulting service
Consulting service M/M
Category of consultant
Professional A Experts
Professional B Experts
Senior Assistant Engineers
Assistant Engineers
Total (reference)

Original contract(June 2003, M/M)

First change tocontract(August 2006, M/M)
Professional A Experts
558
Professional B Experts
5,444
Senior Assistant Engineers
8,938
Assistant Engineers
2,858
Total (reference)
17,798Source: Materials from the consultant

500
5,209
7,806
2,228
15,743Category of consultant

Source: Materials from the consultant

Details of consulting service
・ Support to the overall project from the central
government level
・ Support to respective subprojects from the local
government level・ Survey, design, P/Q and assistance to bidding,construction management regarding civil work of each
subproject・ Quality control of civil work by respective contractors
・ Instruction to strengthen formation of WUAs in
partnership with NGOs/local universities etc.
・ Hold workshops for WUAs on operation andmaintenance system via NGOs/local universities
・ Develop skills of employees of provincial and district
irrigation office to implement and maintain subprojects
・ Assistance to implement sufficient consultations tostakeholders of respective subprojects
・ Confirmation and guidance on environmental

Second change tocontract(April 2007, M/M)
567
5,688
10,5183,045
19,818⑤ Consulting service details: no change
3 subprojects①Paguyaman irrigation
・ Irrigation area: 2,713ha(at LA)→6,880ha(estimation as of April 2008)②Malaka irrigation
・ Irrigation area: 10,000ha(at ex-ante evaluation)→6,000ha(at LA)→6,000ha(estimation
as of April 2008)③Ponre-Ponre irrigation
・ Irrigation area: 4,313ha(at LA)→3,749ha(estimation as of April 2008)

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Item

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review

Appraisal (September. 2002)
considerations in construction phase of each subproject・ Assistance to review EIA report・ Assistance to implement additional environment
protection survey
・ Assistance to screening based on environmental
guideline of JBIC
・ Assistance to proper water management in considerationof irrigation status at downstream areas(2) Period(2) Period: October 2002 – June 2009 (78 months)[Lessons leaned andRecommendations]【Lessons Learned】
・ SRI (System of Rice Intensification) introduction promoted under the project contributed not just reducing the amount of water for irrigation andproduction cost and increasing unit yield, these effects gave incentives for farmers to better manage waters and farm works (farmers started to visit rice
paddy to observe water amount and plant quite frequently etc.). As a result, ①direct effect of SRI introduction and ②proper water management andengagement to farm works spiralled expansion of positive impact, leading to achieve “overall improvement to rice growing system including change ofmind-set among farmers”.
(Many experts question scientific ground of the effectiveness of SRI technique. The technique is still in the process of gaining acknowledgement byinternational society right now, given negative response from IRRI (The International Rice Research Institute), an authority of rice cropping research.
However, there are active movements to prove scientific effectiveness of SRI led by Tokyo University, Cornell University and others)
・ Other factors for success include careful assistance to strengthen WUAs via experts, NGOs/ICOs and so on depending on the needs of each subproject.
・ To ensure long-term success of this project, it is crucial to promptly transfer all sorts of activities to strengthen WUAs currently conducted via consulting
service to be implemented by the ownership of local government (district irrigation office and agricultural office).

(2) Period
・ Project period is expected to last until December 2009, with 6 months delay at the
moment.
・ Paguyaman irrigation is expected to last the longest until 4th December 2009.
・ Status and reason for the delay in the 3 subprojects are as follows.
Ponre-Ponre: Major delay in critical path, the construction of temporary drainage canalhas led to the delay in project as a whole
Malaka: As scheduled
Paguyaman: Construction schedule delay due to poor performance due to financial
difficulty of two contractors, steep price hike of construction materials, insufficient
cement supply and bad weather【Recommendations】
・ As aforementioned, even though the Government Regulation Year 2006 stipulates sharing of responsibility among related organizations for operation andmaintenance of irrigation canals, there is a flexibility to allow involvement of higher governmental organization in some cases (Malaka irrigation
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Item

・
・
・

・

・

[Indicators set for use
at time of ex-post
evaluation]

Result of mid-term review and ex-post evaluation results
as estimated at time of mid-term review
subproject). However, from the perspective of fostering the sense of ownership, it is desirable to transfer operation and maintenance of tertiary canals to
WUAs from higher governmental organizations in a long run.
Even though capacity building of WUAs smoothly progressed so far via NGOs/ICOs hired under the project, involvement of the project has become
quite unclear after FY2008 because Indonesian government stopped budgeting for some subprojects. Continued negotiation with the Indonesian
government is necessary because capacity building of WUAs affects greatly to the manifestation of impact and securing sustainability of the project.
Current operation and effect indicators are deemed necessary to be applied continuously but collection scheme of the actual values of these indicators
needs to be monitored by the time of ex-post evaluation.
This project is a huge project with 53 subprojects (schemes) crossing over multiple islands (Sulawesi, Bali, Lombok, Sumbawa, Timor, Flores and so on)with different economical and cultural backgrounds. In addition, even though it is called irrigation project, the scope is quite extensive encompassing
underground water development, dam construction (around 50m height), head works construction, irrigation facility construction and capacity buildingof stakeholder organization, large enough to constitute a project respectively. Given the complexity, the project objective of “to increase rice production
and thereby contributing to poverty alleviation in the region” might be insufficient to understand the important project effect particular to each
subproject.
In light of the above, it is desirable to reset “project objective of each subproject” in consideration of different backgrounds for the project
implementation in times of ex-post evaluation and ex-post monitoring and evaluate the progress status. Based on this, the whole project is to be evaluatedby DAC 5 criteria (e.g. in Gorontalo where Paguyaman irrigation is located, promoting export of agricultural products is upheld as one major policy andthe subproject is expected to contribute to that. On the other hand, Timor Island, where Malaka irrigation subproject is located, has chronic shortage ofrice supply in its history and the subproject is expected to increase rice supply).
Since it is unrealistic to evaluate all the 53 subprojects respectively as aforementioned, it is desirable to discuss between JBIC and the executing agency
on which subprojects to be targeted for evaluation, how and under what kind of system (including joint evaluation system with Indonesian government)
to implement the ex-post evaluation.
Appraisal (September. 2002)

Indicators set at the time of ex-ante evaluation(1) Cultivated area by crops(2) Rate of water users associations formulated(3) Yield of major crops per unit area
(4) Net annual average farm income(5) Internal rate of return

At field survey for mid-term review (April 2008), the executing agency/DGWR of
Ministry of Public Works measured all the left indicators except for internal rate of returnfor the target 3 subprojects 3 .
On the other hand, i) collection of the left indicators for the rest of 50 subprojects(schemes) apart from the 3 subprojects is necessary for ex-post evaluation and ii) although
it seems that consultant supported collecting actual values of these indicators for the 3
subprojects, the consultant contract is expired when the ex-post evaluation is conducted. It
is necessary to pay attention to the capacity of the executing agency to collect actual valuesof these indictors by the time of ex-post evaluation 4 .

17Appendix-1 Location of sub-projects of DISIMP

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