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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 four MFF tranches. However, only one 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 together with the MFF for a total of $50 million in two loans. The investment program’s anticipated impact was reduced poverty and improved health and living standards in the CRB. Its intended outcome was improved IWRM. 

In support of the investment program’s  expected impact and outcome, the PFR1 project was to deliver four outcomes of its own: (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 three 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 completion, only the first 3 of these 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 succeeding tranches that were supposed to build the required additional water treatment plant and rehabilitate the secondary irrigation infrastructure did not materialize.

The system of rice intensification, successfully implemented on 3,000 hectares, improved water-use efficiency by 38% (according to secondary data) and increased yields by up to 36%, in the three target districts.  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.

The tranche'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.

Overall, because of the cancellation of subsequent tranches, the investment program failed to achieve its expected outcome and impact. The Directorate General for Water Resources was the executing agency for both the invesment program and the lone tranche.  Six 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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