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.