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The design of integrated water resources management (IWRM) investments should be simple.

Successful implementation requires simpler outputs than planned under this investment program. Not too many ministries should be involved, and the program should not be too wide in scope. Similarly, it should have been better if the government focused its first periodic financing request 1 (PRF1) on a narrower slice of the IWRM roadmap supported by the investment program. This would have allowed greater attention to implementation details and follow-through actions, including the preparation of subsequent tranches.

Proper choice of implementing agencies helps ensure the attainment of project outcomes and outputs.

The Ministry of Agriculture and the Ministry of Health successfully implemented the system of rice intensification and water supply and sanitation components of PRF1, respectively, because they had the mandates and existing models to work these out with local governments. In contrast, the Ministry of Environment was not able to implement the local level investments to improve water quality as this was not in line with its mandate of formulating policies and regulations, and monitoring. To prevent being held back by inappropriate institutional arrangements, future projects should carefully consider agency mandates in the choice of implementing agencies.

Adequate planning is crucial to ensuring safeguard compliance of involuntary resettlement category A projects.

While the key resettlement activities were laid out in the resettlement framework and the resettlement plan (RP) for the West Tarum Canal (WTC), the PRF1 project would have better performed with: (i) more resettlement details in the project administration manual (PAM); (ii) an agreement during project design and detailed in PAM to recruit and provide for the costs of updating the RP and livelihood restoration program and the services of an external resettlement monitoring agency, a certified appraiser to determine the compensation rates, and an implementation consultant for livelihood restoration program; and (iii) better coordination with local governments to avoid the eviction of project-affected people before the resettlement process started. This program also highlighted the need for a clear water allocation plan to address water-sharing issues and ensure the participation of all relevant stakeholders.  For example, local governments’ perception that the WTC rehabilitation will benefit only Jakarta and their subsequent low interest in the subproject should also have been addressed by the incorporation of a clear water allocation plan in the subproject.  The policy gap between resettlement and compensation should also be well-anticipated and mitigated as early as possible in future projects. Indonesia’s land acquisition law of 2012 can be used as basis for developing harmonized, mutually acceptable guidelines for resettlement and compensation in future projects. Resettlement and compensation should also be linked to relevant government programs, particularly the provision of affordable housing for illegal settlers along the waterways.

Sustainability and replication of successful community-based activities need continuing support from local governments.

The program’s community-based water supply and sanitation infrastructure were handed over to the communities, which established operation and maintenance (O&M) working groups. These working groups worked well and were successfully replicated independently. Solid-waste recycling facilities should be handed over to the districts, which have the capacity to meet the high maintenance costs and technical skills required for operating the facilities. Similarly, the replication of the conservation village model (CVM) pilots, established under PFR1 through a grant from the Global Environment Facility, needs continuing local government support.   Building on strengthening the livelihood of the communities around the conservation areas, the CVM has been shown by this program to be feasible in widely promoting sustainable watershed management.  

Adoption of appropriate technologies enhances project quality.

The use of technologies such as the Java Spatial Model, river basin water balance model, and flood hydrodynamic model greatly benefited the preparation of IWRM plans. The implementation of the river basin roadmap, and the strategic water resources plan (Pola) and associated investment and implementation plan (Rencana) will need further integration with the regional development plan. The modeling and simulation tools developed by the program could support this process.

Background

The Citarum River Basin (CRB) in West Java, Indonesia is considered by the government as the most strategic river basin in the country.   As of 2008, it provided 80% of Jakarta’s water supply, supported more than 28 million people and 20% of the country’s industrial output, produced 1,400 megawatts of hydropower, and irrigated close to 400,000 hectares that produced 5% of Indonesia' rice. However, because of urbanization and industrial growth, it has been suffering from severe pollution, acute stress, and groundwater depletion, since the 1900s.  Environmental degradation has also reached levels that compromise public health and livelihoods.

Against this backdrop, the Asian Development Bank (ADB) approved a $503.8 million multitranche financing facility (MFF) for the Integrated Citarum Water Resources Management Investment Program in December 2008.  The program aimed to support the implementation of an integrated water resources management (IWRM) roadmap in the CRB.   It was envisaged to be financed by 4 MFF tranches. However, only 1 tranche materialized due to lack of project readiness for the other tranches.

This report covers the investment program and the lone tranche, triggered by the government’s periodic financing request 1 (PFR1) and approved by ADB also in December 2008 for a total of $50 million in 2 loans. The investment program’s expected impact was reduced poverty and improved health and living standards in the CRB. Its intended outcome was improved IWRM. 

In line with the investment program’s results chain, PFR1 was to lead to 4 outcomes: (i) improved reliability of water supply to Jakarta and irrigation areas serviced by the West Tarum Canal (WTC), (ii) improved water use efficiency and increased rice yields in 3 West Java districts, (iii) increased community- and nongovernment organization (NGO)-driven initiatives for improved water and catchment management in the CRB, and (iv) improved water quality in the waterways and reservoirs of CRB.  At project-end, only the first 3 of these intended outcomes were achieved. 

The WTC was rehabilitated to its original capacity of 31 cubic meters per second (m3/s), and water supply delivery rate to Jakarta was increased from 16m3/s to 21m3/s.  However, canal capacity had not been fully utilized as the required additional water treatment plan was not built, nor were the secondary irrigation infrastructure rehabilitated or constructed.  

Through the successful implementation of the system of rice intensification on 3,000 hectares in 3 districts, water-use efficiency was improved by 38% (according to secondary data), and yields increased by up to 36%.  Government-supported community- and NGO-driven initiatives resulted in improved water and catchment management; greater water and sanitation coverage; and the adoption of solid waste recycling and agricultural conservation practices.  Watershed conservation villages were also established.

PFR1’s planned outcome of improved water quality in CRB waterways and reservoirs was not fully achieved: while district-level action plans had been prepared, it remained uncertain whether those plans will be mainstreamed into regional plans and budgeted for implementation. The investments originally contemplated to implement the action plans were cancelled. Only small pilot projects were implemented instead.

Because of the cancellation of subsequent tranches, the investment program overall failed to achieve its intended outcome. ADB’s Southeast Asia Department rated the investment program unsuccessful, and PFR1 less than successful.  The Directorate General for Water Resources was the executing agency. 6 ministries served as implementing agencies.

Project Information
Project Name: 
Integrated Citarum Water Resources Management Investment Program
Report Date: 
September, 2018
Country: 
Project Number: 
Project/Modality: 
MFF
Loan Number: 
2500, 2501
Source of Funding: 
OCR

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