Indonesia - Second Water Resources and Irrigation Sector Management Program Project

Page 1 INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC4950 Date ISDS Prepared/Updated: 12/27/2010 I. BASIC INFORMATION A. Basic Project Data Country: Indonesia Project ID: P114348 Project Name: Water Resources and Irrigation Sector Management Program 2 Task Team Leader: Xiaokai Li Estimated Appraisal Date: November 23, 2010 Estimated Board Date: January 27, 2011 Managing Unit: EASIS Lending Instrument: Adaptable Program Loan Sector: General water, sanitation and flood protection sector (50%);Irrigation and drainage (50%) Theme: Water resource management (67%);Rural services and infrastructure (33%) IBRD Amount (US$m.): 100.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 50.00 50.00 B. Project Objectives [from section 2 of PCN] The development objectives of the proposed project would be to further improve the governance, institutional capacity and infrastructure for basin water resources and irrigation management and service delivery, and increase irrigated agriculture productivity in the target river basins and provinces. Achievement of the development objectives would be assessed through the following performance indicators: (i) effective role-sharing and funding mechanism legally established for management of national river basins covered by the Project; (ii) number of BLU basin agencies operational with satisfactory governance structure and adequate resources for sustainable O&M of the river systems; and (iii) increase in agricultural productivity and farmer income in the project irrigation command areas. C. Project Description [from section 3 of PCN] The project composition will be decided upon completion of the preparatory studies. Broadly the Project will cover: (i) further improvement of water resources and irrigation management capacity and effectiveness through investments in institutional strengthening, capacity-building Page 2 and infrastructure; and (ii) interventions to increase irrigated agriculture productivity and farmers income, likely with the following three components. Component 1. Improvement of basin water resources management and participatory irrigation management (Tentative cost US$145 million) This component supports the consolidation of water sector reforms at national and local government levels, and development of selected service-provision river basin organizations. It will provide funding to further improve BWRM and PIM, in terms of technical capacity, operational effectiveness and physical system performance, and fiscal sustainability. The Component would likely have the following sub-components: A. Basin Water Resources Management A1. Improvement of Basin Management Institutions and Infrastructure: It provides support for further development and strengthening of selected river basin agencies established under WISMP 1 in basin planning, water allocation & water right management, asset management and inter-agency coordination, and for river infrastructure improvement; A2. Development of Sustainable Public-Service River Basin Organizations (BWS-BLU): It would support appropriate governance structure, improvement of management capacity and infrastructure in a number of selected river basins that are earmarked for transition from Balai (Besar)Wilayah Sungai (BBWS # river territory management unit under MPW) to a Badan Layanan Umun (BLU). It would likely cover: (i) establishment and capacity building of BWS- BLU, including a set of interventions for institutional development, management strategy, and capacity-building to improve service delivery and fiscal sustainability; and (ii) river and irrigation infrastructure rehabilitation and improvement, possibly including non-structural measures. A3. National Hydrology Management Program and Information System (NHMP/SISDA): It would support development and implementation of a NHMP that would help improve the availability and quality of critical hydrological information, and enable assessment of water resources potential and utilization for scientific decision-making. B. Participatory Irrigation Management This sub-component will provide continued support to selected irrigation schemes which received supports from WISMP1, and support to larger irrigation systems under central government responsibility (>3000 ha). B1. Institutional strengthening and capacity building for participatory irrigation management: Continued support for empowerment and scaling up of WUA/WUAFs and irrigation committees, and for capacity-building of irrigation management agencies and WUAFs to improve irrigation service delivery, multi-year planning and O&M of irrigation and drainage infrastructure; B2. Irrigation System Improvement at different levels: Rehabilitation and improvement of central, provincial and district government irrigation system infrastructure taking into account climate change impacts; B3. Irrigated agriculture support and climate change adaptation: support for agriculture extension activities, climate change adaption measures incl. replication of technological innovations (e.g. SRI), and other interventions for improving agricultural productivity and raising farmers# income. Component 2. Jatiluhur Irrigation System Rehabilitation and Improvement (Tentative cost US$ 90 million) This Component will provide support for the rehabilitation and modernization of the largest irrigation system of the country - Jatiluhur Irrigation System in northern West Java, including the Page 3 North and East Tarum Canal systems, for management improvement including development/strengthening and capacity building of the WUAFs, the Irrigation Committees and the Kabupaten Irrigation Services, and for measures to increase agricultural productivity. It likely includes three sub-components: J1. Institutional strengthening for Irrigation system management: development and operationalization of an effective inter-agency management scheme involving related management agencies and farmer water user associations and their federations; J2. Infrastructure rehabilitation for I&D, flood and sediment management; and J3. Irrigated agriculture support and climate change adaptation: Agriculture extension activities for productivity improvement, replication of technological innovations (e.g. SRI), and limited post-harvest support, etc. Component 3. Project Management and Technical Assistance (Tentative cost: US$15 million) This Component would support project management, technical assistance for project implementation, independent M&E, investment planning studies and other preparatory activities needed for preparation of future investment interventions. Project Costs and Schedule. The total project costs are expected to be around $250 million, including a Bank loan of $200 million. The project would become effective in January, 2011, immediately after the completion of WISMP 1. The project would last for 5 years. Implementation Arrangements. Implementation arrangements will build on the experiences of WISMP1 and introduce necessary adjustments based on the results of PIP TA and Jatiluhur Irrigation System Management Improvement Study. It is expected that project implementation units (PIUs) would need to be established at national, provincial and district levels. The central implementing agencies of the project would be MoPW-DGWR, MoA#DG PLA and MoHA-DG Bangda, with MoPW and Bappenas as the anchor ministry and cross-sector coordination agency respectively. Civil societies would be engaged in project investment identifications and selections, as well as social mobilization and capacity building of irrigation water user community organizations (WUAs and WUAFs). D. Project location (if known) The proposed project activities under Component 1 would be located in a number of provinces and river basins (mostly within WISMP 1 areas in terms of geographical coverage, but to be decided), and activities under Component 2 will be located in Jatiluhur Irrigation System in northern West Java Province, including the North and East Tarum Canal systems. E. Borrower