Doeuent of

The World BankFOR OFFICIUL USE ONLY

Report No. 6076-MA

-STAFF APPRAISAL REPORT

MALAYSIA

SECOND WESTERN JOHOR AGRICULTURAL DEVELOPMENT PROJECT

June 25, 1986

Projects DepartmentEast Asia and Pacific Regional Office

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

Currency Units - Ringgit M$

Average 1985 December 1985

US$1 = M$2.48 US$1 = M$2.43M$1 = US$0.40 MS$1 = US$0.41

FISCAL YEAR

Government of Malaysia: January 1 - December 31

WEIGHTS AND MEASURES

Metric system

GLOSSARY OF ABBREVIATIONS

DID - Department of Irrigation and DrainageDOA - Department of Agricultureffb - fresh fruit bunch (Oil Palm)JKR - Department of Public WorksMOA - Ministry of AgricultureMPIB - Malaysia Pineapple Industry BoardRISDA - Rubber Industry Smallholders Development Authority

....- .1- FOR OFFICL USE ONLY

MALAYSIA

SECOND WESTERN JOHOR AGRICULTURAL DEVELOPMENT PROJECT

STAFF 'PPRAISAL REPORI

Table of Contents

Page No.

LOAN AND PROJECT SUMMARY

I* BACKGROUND..................................................... I

A. Agricultural Sector,................................... 1B. Project Origin ............................................ 3

II. THE PROJECT AREA............................................... 5

A. Location and Topography ......................... ......... 5B. Soils and Land Use ...... 5C. Population and Incomes............................... ...... 7D. Farm Size and Land Tenure .................................. 7E. Existing Infrastructure. ................................... 7

III. THE PROJECT 8

A. Brief Description8........................ ................ .. 8B. Detailed Description . 9c. Project Costs *.... 14C. Project C s ......................................... 15E*...ouemn 16F. Disbursements....................... ............. .......... 17G. Accounts and Audits............. ........................ ... 18

IV. PROJECT IMPLEMENTATION ............. ............... 18

A. Organization and Management................................ 18B. Support Services............. ....... 20C. .. . . .ee ri ng .................... 22D. Progress Reporting.. ...... . ...........O-*.... 23E. Monitoring and Eva luationd . 23-F. Environmental Effects.................................... 23

This report is based on the findings of an appraisal mission to Malays-ia inApril 1985 with a postappraisal mission in November 1985. Mission memberswere W. Cuddihy, K. Templeton, H. Plusquellec (Bank) and P. Morris (Cons.).

This document has a restricted distribution and may be used by recipients only in the performanceof their offlical duties. Its contents may not otherwise be discksed without Worid Bmnk authoraon.

Page No.

V. AGRICULTURAL PRODUCTION4.......... ..... *.....* ............. 24

A* Oil PaIm................................................ 24B. ubr............* ............ 25C. Crop Diversification........................................ ........ 27D. Farm Icms 27

VI. ECONOMIC BENEFITS AND JUSTIFICATION ..........................! 28

A. Economic Evaluation ......................... . 28B. Project Risk ........... e.. eec............................ 29C* Cost Recovery............... ................ . 29

VII. AGRSEEENTS TO BE REACHED AND RECOMMENDATION ...... 29

ANNEXES

1. Project Cost Summaries and Financing Plan2. Schedule of Loan Disbursements3. Implementation Program4. Economi: Streams and Prices5. Consulting Services Requested and Annual Civil Works Maintenance

Costs.6. Replanting Grant Schedules and Crop Yield Profiles.7. Documents in Project File.

MAP: IBRD 18871 Second Western Johor Agricultural Development Project

MALAYSIA

SECOND WESTERN JOHOR AGRICULTURAL DEVgkOPMENT PROJECT

Loan and Project Summary

Borrower: Malaysia

Loan Amount: US$55 million equivalent

Terms: Repayable in 15 years including three years' grace, atthe standard variable interest rate.

Project Description: The project would support the Government's ongoingprogram of flood control and drainage in the valuablefarmlands in the southwest of Johor State. It wouldbe the second Bank-assisted project for the same pur-pose and would extend over a further 210,000 ha workedby 30,000 smallholders. The project would finance (i)construction of a dam (storage capacity 92 Mm3) forflood control and water supply to nearby small towns;(ii) construction of 100 km of embankments and otherflood control works along the ri'vers of the Batu Pahatriver basin amounting to 10 M m' of earthworks; (iii)completion and upgrading of the existing drainage androads network; (iv) replanting of 14,500 ha of senilerubber with oil-palm, high-yielding rubber anddiversified crops; and, (v) support to project admin-istration. The project would reduce flood damage tofarms and towns, increase incomes from higher valuecrops, provide safe drinking water to communities andimprove road access for commuters to employment.Without the project, recurrent flooding would continueto cause crop losses and urban damage; and the poordrainage and transport system would continue torestrict replanting of old rubber with oil palm.

Risk: The main project risks would be delays in on-farmdevelopment should Government budgetary problems re-occur and delays in land acquisition. Government has

- reaffirmed the priority it gives the project andincremental staff are already in place totexpediteland acquisition.

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Estimated Cost:Local Foreign Total

(USS milion)

Civil works 25.5 32.8 58.3Equipment and vehicles 0.1 0.2 0.3Consultants 0.5 1.2 1.7Project Staffing 5.4 5.4

Crop Production 13.5 5.9 19.4Land acquisition 30.2 - 30.2

Base Cost 75.2 40.1 115.3

Physical contingencies 3.5 4.6 8.1Price contingencies 14.6 10.3 24.9

Total Project Cost /a 93.3 55.0 148.3

Financing Plan:

IBRD 0.0 55.0 55.0Government 93.3 0.0 93.3

Total 93.3 55.0 148.3

Estimated Disbursements:

Bank FY 1987 1988 1989 1990 1991 1992 1993 1994 1995-…- -…----- ---- (US$ milli - --

Annual 1.3 4.7 8.4 10.0 8.7 7.1 6.7 5.7 2.4Cumulative 1.3 6.0 14.4 24.4 33.1 40.2 46.9 52.6 55.0

Rate of Return: 14% /b

MAP: IBRD 18871

/a Including taxes and duties amounting to US$8.0 million.7; Does not include benefits of access roads and water supply.

MALAYSIA

SECOND WESTERN JOHOR ACRICULTURAL DEVELOPMENT PROJECT

STAFF APPRAISAL REPORT

I. BACKGROUND

A. The Agricultural Sector

1.01 The agricultural sector continues to play a dominant role in theMalaysian economy though its relative importance is declining as the countryproceeds toward industrialization. Nevertheless, in 1985, the sectorcontributed about 23% of GDP, 40% of total merchandise exports and 35% oftotal employment. In the 1960s and early 1970s agriculture grew at 7% p.a.but slowed to an average 5.5% p.a. during 1976-80 and to 3.7% p.a. during1981-84. Agricultural production has been primarily export-oriented withMalaysia being the world's largest producer and exporter of rubber and palmoil producing about 40% of the world's natural rubber and more than half ofits palm oil. Malaysia's share of world exports is about 45% for naturalrubber and 70% for palm oil. It is also a major exporter of wood and timber.

1.02 Malaysia's climate and soil conditions provide a strong comparativeadvantage for tree crop development particularly rubber and oil palm. Aboutone third of Peninsular Malaysia and less than 5% of East Malaysia (Sabah and!arawak) are under cultivation, while most of the remaining area is stilltropical forest. The total cultivated area is about 4.5 million ha, of whichabout 2.0 million ha are under rubber, 1.3 million ha oil palm, 300,000 hacoconut, 200,000 ha cocoa and 500,000 ha rice. About half of the rice area isdouble cropped. Minor crops include sugarcane, pineapple, tobacco, coffee andpepper. The entire rice area and about two thirds of the tree crop area arein smallholdings averaging 1.2 ha; the remainder is mainly in estates.

1.03 With the strong performance of the economy until recently, povertyincidence has been reduced from about 49% in 1970, to 29% in 1984. However,,it remains high in the rural areas which account for about two thirds of thenation's poor. This is particularly the case among paddy, rubber and coconutsmallholders, primarily because of small farm sizes. With increasing indus-trialization and low incomes in the sector, the rural youth are migrating tourban areas, reducing the agricultural labor force and furLher contributing tcthe slowdown of farm output.

Government Policies and Strategy

1.04 Government efforts in agriculture have traditionally been orientedto poverty alleviation through programs of land settlement, technology trans-fer, subsidies and infrastructure. In view of the downturn in agriculturalgrowth rad increasing migration to urban areas, the Government reviewed itssector'.l objectives and announced its National Agricultural Policy (NAP) in1984. Maintaining the emphasis on poverty alleviation, the NAP objectives

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are: (a) maximization of farm incomes to improve the quality of rural lifeand facilitate retention of productive labor in the sectot; and (b) expansionof production of traditional and new export and food crops to revitalize theagricultural sector.

1.05 The Government's main objectives have been pursued through two basicstrategies: (a) land development and settlement schemes providing viable farmsizes and adequate incomes and expanding tree crop production for export; and(b) in situ development projects designed to consolidate small farws, rehabil-itate idle lands, increase productivity and improve farm management. This hasLed to development of large land settlement schemes by the Federal Land Devel-opment Authority (FELDA) and the State governments; irrigation and drainageprojects by the Ministry of Agriculture; land rehabilitation programs by theFederal Land Consolidation and Rehabilitation Authority (FELCRA); and rubberreplanting and mini-estate development programs by the Rubber Industry Small-hnlders Development Autbority (RISDA). Under the NAP, these strategies willcontinue but greater attention will be given to the problems of uneconomicfarm units, unremunerative crops and low productivity in the in situ develop-ment projects. This includes promotion of group farming with centralizedmanagement, support to farm mechanization, crop diversification, the intensi-fication of integrated support services and provision of credit for selectedcrops.

1.06 The success of Government programs has been limited by the fasterrise in real wages for non-farm work, the reluctance of urban migrants to sellland they no longer cultivate and fatling prices for agricultural com-modities. Most affected has been the rice growing industry where productionhas'fallen from a peak of 1.8 million tons of rice in the early-1970s to 1.2million tons in the mid-l9ROs despite an increasingly more expensive outputprice support scheme coupled with free fertilizer and other input subsidies.The rubber industry has suffered from declining international competitive-ness. The scarcity of rubber tappers has led to increasing areas of matureuntapped rubber even though wages for Malaysian rubber workers are doublethose of neighboring producers. Government policy now accepts the- desir-ability of structural change within the sector and has abandoned expl:citpaddy production goals, trimmed some subsidy programs and is concentrating onsupporting change within high productivity areas. This has led to a decreasedemphasis on rice, rubber and coconuts in favor of oil palm, fruit trees, andcocoa, all of which have a lower labor demand and a higher value-added.

Bank Sector Strategy

1.07 The Bank has consistently supported the Government's objectives andinstitution building efforts in agriculture. Initially, Bank lending in agri-culture concentrated on land development, settlement and irrigation. Morerecently emphasis has also been given to programs designed to raise productiv--ity in existing smallholder areas such as irrigation and drainage improvement,rehabilitation of tree crops, land consolidation, agricultural research and -extension. To date, the Bank has made 24 agricultural loans amounting toUS$781.3 million, nearly 45% of total lending to Malaysia. Of these, the mostsuccessful have been the six loans to assist implementation of FELDA projectsin the states of Pahang, Johor and Negeri Sezobilan (Loans 533, 672, 885, 967,

1044 and 1590-MA). These projects cover some 66 settlement schemes,comprising development of 120,4l0 ha, construction of basic infrastructure andsettlement of 29,450 families.-V Favorable circumstances for these projectsincluded fertile soils in unoccupied lands, and readily exported crops, cilpalm and rubber. Success has been mixed among the area development schemesamong existing small farms producing foodcrops, particularly rice. Problemshave been smallness of farm size, shortage of irrigation water and low returnsrelative to non-farm employment. However, in ecologically favored areas therehave been notable successes among which the MUDA Irrigation Projects (Loans434, 1717-MA) led to a doubling of cropping intensity, increased yields. andstrong institutional development. Now that Peninsular Malaysia is running outof long-run supplies of land available for new settlement schemes, Governmentpolicy has reemphasized the need to concentrate on development of older areaswith entrenched rural poverty. Thy Bank supports thia view and is assistingthe program of structural change._

1.08 In view of the sector's contribution to national output and povertyalleviation, an important thrust of future Bank assistance to Malaysia wijicontinue to be for agriculture along the lines proposed in the NAP.Particular attention will be given to the solution of structural problemsfacing the sector, through Iax4 consolidation and improved efficiency andmanagement of smallholder agriculture; and to strengthening the land devel-opment and settlement programs, as the most effective way of providing viablefarm units and improving rural incomes.

B. Project Origin

1.09 Johor has the second'largest population of Malaysia's states and oneof the highest population growth rates; average per capita incomes are belowthe national average and rural incomes are about one half urban incomes.Johor is the largest agricultural producer, responsible for some 15% ofsectoral GDP. However, the annual growth rate of farm output at 1.6% for1981-84 is one half the national average. The slow growth rate reflects thehigh average age of tree crops and the depressed pineapple industry.

1.10 The southwestern part of the State, settled with smallholderst ismostly poorly drained and flood prone, and has been minimally involved in thenationwide replanting of rubber with oil palm. Less than 10% of the rubberand pineapple areas have been converted to oil palm compared to 40% state-wide. Public land schemes and private estates are mostly located on higherelevations of low flood risk and lower development costs. In the early 1970sa 300,000 ha block of these lowlands was selected for infrastructure develop-ment to assist smallholders diversify into oil palm, vegetables, cassava,groundnuts and other crops. Too large to be managed as a unit, it was dividedinto two blocks for sequential development. The first block was appraised in1973 as the Western Johor Agricultural Development Project (Loan 973-MA) whichbecame effective in August 1974 and was completed in October 1984. The second

1/ PPAR Nos. 2122, 3024, 3978 and 4221.

2/ OED Impact Evaluation Report No. 3587.

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block comprises Phase II and is the project proposed in this report. The Loanincluded feasibility studies for Phase II to be prepared by MOA. These fundswere lOt used and preparation was made without Pank involvement. In 1981, theGovernment submitted a feasibility report to the-Bank which included anagricultural development plan and engineering proposals including aconsultfat's detailed design of the Bekok Dam. After review by the Bank itwas agreed to engage international consultants to: (a) review the generalinfrastructure plan with emphasis on the hydraulic works and a study of theflood control options; (b) prepare preliminary designs, cost estimates andschedule of implementation for the selected option; (c) prepare a long-termagricultural development plan and a specific program for the projectimplementation period; and (d) review detailed designs for the Bekok Dam. Thework was financed under the National Small-Scale Irrigation Project (Loan1444-MA). The draft proposals for the least-cost solution were reviewed andagreed to by the Bank in 1983 and detailed design was begun. A final reportwas accepted by the Government in 1985 and proposed to the Bank forappraisal. The project was appraised in April 1985. A post-appraisal inNovember 1985 was made to adjust final appraisal to the draft allocation madeunder the Fifth Plan.

Experience under the First Project (Loan 973-MA)

1.11 The first project financed construction of two flood control dams,river works, a drainage system, roads, a coastal embankment and agriculturaldevelopment in an area of some 135,000 ha. The project was completed in 1984,five yeay later than expected at appraisal and experienced a 31% costoverrun ._ The major causes of delay and cost overruns were inadequatepreparation of engineering works and budgetary shortfalls, implementation ofadditional works not included at appraisal, and staffing shortages.Consequent ccst overruns and delays reduced the IRR from 15X forecast atappraisal to 10%. Expected benefits from vegetablest cassava, groundnuts andagroindustry did not materialize with farmer interest centered on replantingold rubber with oil palm and underplanting coconut with cocoa. Nevertheless,participating farmers benefitted significantly and important secondarybenefits were generated in terms of road access and improved livingconditions.

1.12 The PPAR's main findings were that: (i)3changing economiccircumstances adversely affected the project leading to farm labor shortages;(ii) smallness of farm size often relegated farming to a secondary occupationwith reduced interest; (iii) civil works were inadequately prepared at time ofappraisal and appraisal premature; (iv) initial weakness in projectorganization delayed implementation; (v) shortage of staff for landacquisition delayed progress of works; and (vi) time could have been saved byswitching earlier to LCB procedures on roads and drainage civil works afterlittle interest in bidding was shown by foreign firms.

1.13 During preparation of the second project these findings have beenincorporated into project design. The cropping pattern to be supported, pre-dominantly oil palm, has a lower Labor demand per hectare than the mixed

31 Draft PPAR, December 2, 1985.

cropping pattern proposed-for the first project. The proposed projectenvisages formation of mini-estates, that is, producer cooperatives in supportof Covernment strategy to overcome the problem of smallness of farm size. Theproblem of inadequate preparation has been avoided by not appraising untilafter completion of detailed design (now finished) of the Bekok Dam which isthe major project civil works component. During the ten-year implementationperiod of the first project a satisfactory project organization eventuallyevolved. It is proposed to continue using the same arrangements. The initialland acquisition delays due to staff shortages for title proces@ing wereeventually overcome by increasing the staffing for the purpose. These staffpositions specifically created and filled for project land acqusition aretemporarily still in place and the staff are already working on landacquisition for the proposed project. During implementation of the completedproject, after 13 ICB contracts had been satisfactorily executed by localfirms and given the negligible response from foreign contractors, charges weremade to allow for LCB on remaining zivil works for drains and agriculturalroads. Under the proposed project, the ICB contracts would be large enough toattract foreign bidders and the smaller contracts for works to be carried outunder LCB would be open to foreign bidders. The problem of cost overruns hasbeen addressed by adequacy of detailed design before appraisal.Implementation delays have been dealt with by readiness of preparation and byallowing a seven year's implementation period.

II. THE PROJECT AREA

Locstion and Topogriphy

2.01 The project area covers about 210,000 ha, mostly in the Batu Pahatriver basin (1,950 62) in southwestern Johor State (see IBRD Map izo. 18871).About 70% (150,000 ha) has very flat low-lying alluvial and organic soils.Some 97,000 ha of the alluvial soils are poorly drained and still subject toregular flooding despite drain construction and river improvement works overthe years. Flooding is primarily caused by overflow of the Batu Pahat Rivertributaries, the Simpang Kiri and the Simpang Kanan Rivers and its two mainsubtributaries, the Bekok and Sem'rong Rivers. A secondary cause is inade-quate drainage. Major flooding occurs, on average, once every three years onthe flat flood plains adjoining the main river system. Some 24,000 ha areaffected by floods with a three-year return period, 32,000 ha by floods everyfive years and about 42,000 ha by floods every 25 years. Flooding can exceeda depth of one meter and persist for one to three months. The proposed proj-ect would address this through construction of a dam on the Bekok River, floodmitigation works for other rivers, and drainage works. The flood controldesign adopted for the project was chosen after examination of alternativesolutions and optimised during detailed design.

Soils and Land Use

2.02 Soils. About 83,000 ha of alluvial soils are acid sulphate orpotentially acid sulphate within 0.5 m of the surface, necessitating closelycontrolled groundwater levels to prevent acidification in the future. Peat

soils of varying depths of up to 3 m or more cover about 32,000 ha. Under dryconditions, peat oxidizes and subsides. Drainage development in the potentialacid sulphate and peat soils areas should therefore be restricted to a minimumto maintain tte groundwater table as close to the land surface as practicable.

2.03 Land Use. The 1984 land use survey showed that 73% of the projectarea has been developed for agriculture. Of this, some 95% is under treecrops. The land use is summarized as follows:

Percentage ofCrop Area Cropped area

(ha) (X)

Rubber 60,000 39Oil palm 50,000 33Coconut 25,000 16Other tree crops 10,000 7Other crops 8,000 5

Subtotal 153,000 100

Swamps, urban, etc. 57,000 -

Total 210,000

2.04 However, most of the rubber is senile or mature with a yield averageof 380 kg/ha/yr compared with the national smallholder average of600 kg/ha/yr. Low yields are due to inferior seedlings, waterlogging, lowtapping intensity and age. Coconut is grown mainly for home consumption butthere is strong interest in underplanting coconut with cocoa or coffee. Thereare about 600 ha of cocoa and 1,100 ha of coffee interplanted among coconutsin the project area.

2.05 Although Johor State-has led in the rapid expansion-of oil palm in -Malaysia, the low-lying river basins have not benefitted because of the highcost of infrastructure and variable yields on acid sulphate and peat soils.Of the 50,000 ha of oil palm in the project area, 30% is in smallholdings onthe bottom lands and the balance on estates, generally above flood levels.Estate yields are satisfactory at 15 to 20 tons ffb/ha, seven years afterplanting. Efowever, smallholder yields, which average about 10 tons/ha, areunsatisfactory.

2.06 Pineapples, grown mainly for canning, are planted on some 816 ha,increasingly as an intercrop between oil palms during the first two years ofestablishment where yields are low. Fruit, vegeta:)les and paddy are grownalso, mainly for home consumption.

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Population and Incomes

-2.07 The population of the project area is-about 300,000 of which-twothirds are dependent on farming to some extent for employment. The averagefamily size is six. About 70% of rural households have electricity and 35Xreticulated water supply. The average annual household income for rural fami-lies is M$356 per month, which is about the official estimate of the povertyincome level. But a significant characteristic is that farm income comprisesonly 56Z of total household income with the balance coming from employment offamily members in nearby towns, remittances from those working elsewhere andgovernment transfers. Further, average household income from the largest farmsize group was found to be only 30% more than that of the smallest farm sizegroup due to reduced nonfarm employment.

Farm Size and Land Tenure

2.08 The average farm size is 2.5 ha with about 80% owner operated andthe remainder under some leasing arrangement. Small farm size is the majorcause of poverty, as elsewhere in Malaysia. The prospect of attractiveemployment opportunities in the towns has contributed to lack of interest inagriculture among young people and results in migration of labor, land aban-donment and an increasing tendency to view farming as a subsidiary occupation.

Existing Infrastructure

2.09 Drainage System. Drainage has been implemented for only 70%(102,000 ha) of the alluvial soils in the project area, including 57,000 ha bythe Department of Irrigation and Drainage (DID) outside the 8atu Pahat riversystem and 45,000 ha of inland drainage schemes along the Simpang Kanan andBekok Rivers. These facilities constitute an extensive main drainage andfield drainage system which needs extension over another 40,000 ha, in theproject area. The main drainage system consists of parallel secondary drains,spaced at intervals of about 400-1,000 m. The secondary drains usually draindirectly into major rivers or the sea. Where river bunds or a coastal embank-ment exist, they drain into a collector drain inside the embankment. In mostareas an extensive field drainage system has been dug by farmers to transportwater from farm plots to the main drainage system, which comprises farm drains(quaternary) and feeder drains (tertiary). Quaternary drains are dug alongfarm boundaries.

2.10 Agricultural Roads. Approximately lOO1,OO ha of the project areahave extensive agricultural roads along secondary drains. Spacing of roadsand drains is often wide, sometimes exceeding 1 km, and is generally suited torubber cultivation, with transport requirements for about 1 ton/ha/year ofsheet rubber. However, smallholders-are increasingly replanting old rubberwith oil palm which is transforming transport-requirements. For example, atfull production oil palm involves about 20 tons/ha/year of ffb. The densityof roads and secondary drains in the project area would therefore need to beincreased to meet the needs of the changing cropping pattern.

2.11 Water Supply. Water b,pply currently depends on small, individualwater schemes but these are insufficient to meet demand. Quality is deterior-

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ating because of salinity encroachment and pollution in coastal areas.Development of water storage in resrvoirs to meet the potable water supplyneeds of the Kluang District would therefore be included in the project.

2.12 The water supply requirements of the existing Sembrong and proposedBekok reservoirs have been reviewed by the Department of Public Works (JKR),taking into consideration flood mitigation requirements, the need to maintaincompensation flows in the river and other potential sites. JKR co3cluded thatthe designed water supply storage of the Sembrong reservoir (15 Mm ) is siffi-cient but that the water supply storage at Bekok should be at least 24 Mmwith a provision for future increases up to 51 Mm . A yield study for theBekok River showed that a 50- ear safe yield of 225 Mld is available from awater supp'y storage of 24 Mm".

2.13 Treatment plants are already being developed to deal with theplanned water supply increases. A new treatment plant at Yong Peng (25 Mld)on the Bekok River is under construction for completion by uid-1986. Anothertreatment plant with a capacity of 60 Mld located on the Sembrong River 3 kmuPstream of its confluence with the Bekok would also be constructed togetherwith a water distribution system under the Bank-assisted Johor Water SupplyProject (Loan 2654-MA of US$62 million) approved by the Board on March 26,1986.

2.14 kationale for Bank Involvement, The difficult hydrology of the BatuPahat river basin required long preparation and complex modelling. Bankassistance led to design changes and a satisfactory resolution of choice amongalternative engineering solutions. In addition to continuing assistance tothe MOA in project preparation and implementation, the Bank project wouldstrengthen the integration of farmer support services and assist theCovernment's attempts at land consolidation through use of the mini-estateconcept (para 4.06).

III. THE PROJECT

A. Brief Description

3.01 The proposed project would control floods and improve drainage over98,000 ha in Weste'rn Johor (IBRD Map No. 18871) and would replant 14,500 ha ofsenile rubber on smallholdings during the construction period. The workswould increase yields of younger existing plant stands and would enable thedevelopment of a further 70,Q00 ha after completion of the works. as part ofthe ongoing programs under several agencies. The civil works would consistof:

(a) construction of a dam on the Kembong River and a 6.5 km long channelto direct river flows into this reservoir;

(b)- construction of extensive river improvement works on the SimpangKiri, Simpang Kanan, Bekok and Sembrong Rivers, including riverenlargement (79 km), river realignment (14 km), and new levees alongtidal reaches (55 km);

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(c) construction of a catchment separator bund (12 km) between theSimpang Kiri and Bekok Rivers and a small flood-retarding embankment-on the Simpang Kiri River beside a future expressway;

(dY construction of a main drainage system consisting of higb leveldrains (146 km in nonflooded areas and 69 km in flooded areas) andassociated structures, and lower level drainage outlet works on thelower rivers, and replacement or construction of bridges;

(e) replacement of eight existing bridges on the main rivers;

(f) flood protection for the town of Parit Sulong; and

(g) development of three coastal blocks through construction of secon-dary drains (85 km), new agricultural roads (112 km), resurfacing ofexisting roads (920 km) and maintenance tracks along existingsecondary drains (350 km).

3.02 Agricultural development would involve about 14,500 ha of smallhold-ings during the project construction period through:

(a) conversion of about 10,000 ha of old low yielding rubber to oil palmof which about 3,000 ha would be developed as mini-estates;

(b) replanting of 3,000 ha of old rubber with high yielding rubber; and

- (c) conversion of 1,500 ha of old rubber to diversified crops.

This development would form part of the 85,000 ha expected to be developed inthe project area over 20 years as a result of the drainage and flood controlworks. It would be the first time-slice in the replanting of some 50,000 haof old rubber, the bringing of about 20,000 ha of swamp and scrub lands intoproduction with oil palm and diversified crops, and the intercropping ofanother 15,000 ha of coconut with cocoa, coffee and fruits.

3.03 In addition, support would be given to project management in theform of engineering consulting services, equipment and vehicles, administra-tion buildings, equipping of a soils laboratory, and incremental projectstaff.

B. Detailed Description

Civil Works

3.04 Bekok Dam. The Bekok reservoir would be located on the KembongRiver, a sull tributary of the Bekok River. Bekok flows would be divertedthrough a 6.5 km long channel. The dam, similar- in design to the SembrongDam, would consist of a main embankment 3.9 km long and 15.5 m maximum heightand several saddle dams of a total length of 1.9 km. Associated works wouldinclude:

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(a) an ungated primary spillway, 20 m long;

(b) an emergency unlined spillway, 250 m long in one section; and

(c) outlet works equipped with twin radial gates.

3.05 The proposed revised design provides 3or 24 Mm3 of water supplystorage and a flood mitigation storage of 68 Mm between the normal maximumlevel for water supply and the crest of the primary spillway, giving a totalstorage of 92 Mm . The-flood mitigation criteria agreed with the consultantsare:

(a) storage of the 10-year flood without release for seven dayq (thetime required to drain the land located below the dam);

(b) discharge rate of the 25-year flood not to exceed 50 m31s;

(c) discharge only of floods greater than the 100-year flood over theunlined emergency spillway; and

(d) safe passing of the probable maximum flood.

Water would flow by gravity to the intake points for the potable water supplyextraction points provided under the Johor Witer Supply Project.

3.06 Sembrong Dam. The Sembrong Dam, completed in September 1984 underthe first project at a cost of M$24 million, meets the water supply ani floodmitig'ation requirements'defined in 1980. The reservoir provides 15 Mm ofwater supply storage. Total length of the main and saddle dams is akout2.5 km. The uncontroied spillway, 60 m long, is able to pass 360 m Is whilethe 3utlet consisting of two radial gates has a total discharge capacity of42 m Is.

3.07 River Training Works. Rivers throughout the area would be canalizedby enlarging their channels to deal with the design flow and by improvingtheir alignment to increase the hydraulic gradient. In their lover reaches,the rivers would be confined within embankments to prevent the lower landsfrom being flooded by the rivers and by high tides. Work on the upper reacheswould be executed by conventional land-based plant while works on the widerlower reaches would be partly carried out by dredge. Spoil would be disposedof beside the banks of river channels and in discrete areas by pipeline trans-port from the dredges.

3.08 Separator Bund. A bund would be constructed to prevent unregulatedflood water from the Simpang Kiri River from spilling over into the Bekokvalley. This earth bur.d would be about 12 km long and would have an averageheight of 2 m. A small flood retarding embankment would be constructed on theSimpang Kiri River immediately upstream of the proposed kuala Lumpur to JohorBahru expressway to reduce the flood peak in the river below that point.

3.09 ,4ain Drains. A system of main drains would be constructed to conveydrainage flows to the sea. Catch drains;-would be built approximately parallel

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to the contour lines to collect drainage water from land above the 25-yearmaximum water level. High level drains running perpendicular to the catchdrains would be constructed to take the flows to the river -or-sea at eleva-tions close to or above ground level and would be enclosed between bunds toprevent flooding. Drains would be constructed with a maintenance berm of 6 mwidth between the drain and the embankment. The design capacity of drains isbased on the peak of the 5-year hydrograph and together with dikes givesprotection for a 25-year flood. Drains would be equipped with standarddrainage outlet structures where low lying land is protected by levees.

3.10 Main Road Brid8es. Eight rural road bridges would be replacedbecause of river enlargements. These would all be less than 50 m in length.They would be constructed to standard design for bridges in the area.

3.11 Town Flood Protection. Four towns (Batu Pahat, Parit Sulong, SriMedan and Parit Raja) are subject to partial flooding during major floods inthe main river systems of the project area and intense rainfall in the localcatchments draining through the towns. In addition, abnormal high tide levelsare a major cause of the flooding of Batu Pahat. Only flood protection ofParit Sulong, which is the most severely affected, is included in the projectbecause it has to be implemented concurrently with the other flood mitiga-tion works. The general concept of flood protection would be to construct aring levee around the towns with provision of manually operated outlet gatesto allow drainage of runoff from the area behind the levees. A ring leveewith a crest width of 4 m would be constructed around the town of Parit Sulongenclosing an area of 68 ha. Two outlet structures, normally fully open, woulddivert drainage water to discharge into Simpang Kiri river. A small pumpingstation of 1.4 m3/sec capacity would be constructed to operate when the riverlevel exceeds 1.5 m above sea level.

3.12 Secondary Drains. New secondary or internal drains would be dug innewly reclaimed swamp areas and in existing drainage areas where the drainspacing is too wide. To achieve uniformity, the same standards for drain lay-out applied in the first project area would be used giving a spacing of 800 m-between drains.

3.13 Agricultural Roads. About 112-km of agricultural roads would beconstructed under the project to a minimum width of 4 m with a surface courseof 0.2 m graded lateritic gravel over a compacted earthfill embankment with aminimum thickness-of 0.4 mo. The design carrying capacity of these roads is3.0 tons. Roads on peat soils would have compacted earthfill embankments atleast 0.6 m thick, on geotextile material overlying the peat, covered by acoarse sand blanket.

3.14 Maintenance Tracks for Existing Drains. Maintenance and localupgrading of the existing drainage system is often constrained by inadequateroad access and insufficient space for equipment and spoil. Maintenance isoften carried out from nearby roads, requiring traffic diversion or sometimespreventing vehicle access during maintenance. Although maintenance is carriedout only every one to two years, traffic inconvenience is considerable, par-ticularly in more densely populated areas and where traffic diversion isimpossible. Under the project some 350 km of new maintenance tracks will be

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provided along all secondary drains which lack an adequate maintenance bermand where insufficient space is available between existing roads and drainsfor maintenance.

3.15 Land Acquisitiot The proposed infrastructure works require acqui-sition of about 3,100 ha of land. Crop compensation would also be made to 140families now living on about 950 ha of government lands legally developedwithin river reserves and who would be relocated. There are no householdspresently in the Bekok reservoir area. Under the previous project landacquisition problems were a major source of delay until the project financedthe appointment of 48 staff positions in the Lands Office. This has ensuredtimely processing and would continue to do so. Work has already begun on landacquisition for the Bekok Dam site giving a lead time of more than one yearbefore start of construction. Assurances were obtained during negotiationsthat Government would make appropriate arrangements for timely landacquisition and for resettlement or compensation of the families to bedisplaced and in accordance with a plan of action satisfactory to the Bank(para. 7.01(a)).

Table 3.1: AREA OF LAND TO BE ACQUIRED(ha)

Land acquisition

Bekok reservoir 1,300Separator bund 71Simpang Kiri River 245Bekok River 239Sembrong River 51Simpang Kanan River 154Batu Pahat River 16Flood-related drains 205Nonflood-related drains 303Secondary drains and roads 520

Total 3,104

Agriculture

3.16 Oil Palm Development. About 10,000 ha of old rubber would bereplanted with oil palm under the RISDA-managed rubber replanting cess fund.These would consist of (a) some 7,000 ha developed by individual farmers onabout 2,800 smallholdings of average size 2.5 ha, some organized intc groupreplanting schemes with RISDA contract arrangements for land clearing andplanting, and (b) about 3,000 ha developed into 30 mini estates of about100 ha each, under direct RISDA management. The total average annual conver-sion of 1,450 ha would be double the achievements of recent years reflecting

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the more attractive returns from oil palm. Oil palm development in the earlyproject years would be largely in areas free of flooding problems, especiallydevelopment blocks 9, 13 and 14 (IBRD Map No. 18871).

3.47 Rubber Development. The project would replant about 3,000 ha of oldrubber on 1,200 individual holdings of 2.5 ha with modern high-yieldingclones, under the RISDA-operated replanting scheme. The annual replantingrate of about 400 ha/year is only about 50% of recent performance, reflectingdeclining interest in rubber. Farmers replanting with rubber will be mostlylocated in less flood-prone areas or those who do not wish to sever theireligibility for future RISDA rubber replanting grants. No rubber mini-estatesare expected to be formed due to lack of farmer interest.

3.18 Crop Diversification. The project would replant old rubber withdiversified crops. Under the RISDA rubber replanting fund, farmers mayreplant with any of 17 crops. It is estimated that 15X of the old rubber areafor replanting, amounting to 1,500 ha, would be diversified into crops otherthan rubber or oil palm.

3.19 Engineering Consulting Services. About 500 months of consultantservices would be required to supervise construction of project works and toassist DID in design revision during construction (Annex 5.1). DID hasproposed that the consultants responsible for detailed engineering, aconsortium of local and foreign firms, would also be appointed for con-struction supervision. The consultant's terms of reference have been preparedand were reviewed at negotiations. Assurances were obtained that theGovernment would by December 31, 1986 employ consultants for supervision ofconstruction under terms and conditions satisfactory to the Bank(para. 7.01(c)).

3.20 Equipment and Vehicles. A fleet of maintenance equipment and vehi-cles has been maintained by DID for road and drain maintenance in the firstproject area. It is proposed to expand the machinery pool to maintain bothproject areas by purchase of two front wheel loaders, five motor boats andfive four-wheel drive vehicles. The existing equipment is well maintained andadequately operated. Project office vehicles to be supplied would be onefour-wheel drive vehicle, I car and mini-bus for transport of personnel. Onefour-wheel drive vehicle and scientific equipment would be provided for thesoils laboratory.

3.21 Buildings. The project would finance construction of a projectoffice of 2,980 m'. Under the first Western Johor Project provision for aproject building was not used because rented accommodation was found. Withthe extra staff needed for-the proposed second project land has been purchasedand a perma ent office would be constructed. In addition, a laboratory ofabout 240 m for monitoring acid sulphate soils would be constructed for DOA.

3.22 Project Staffing. The project would finance-about 13 extraprofessional staff positions in DID necessary for supervising of constructionand operation, together with about 59 support staff positions. A further 23positions would be financed in the Project Office to assist in projectplanning and coordination of agricultural support services. To assist-

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processing of land acquisition 48 positions would be financed in the LandOffice.

3.23 -Status of Preparation and Implementation Schedule. The feasibilitystudy was completed in 1985. The agricultural development plan would be atime-slice of an ongoing program. Final design of the major civil workscomponent, the Bekok Dam, is complete. Detailed design for the river workshas begun and is expected to be completed in 1986. The project would beimplemented over a seven-year period beginning CY87. The proposedimplementation schedule is shown in Annex 3. Bidding documents forconstruction of the Bekok Dam were made avaiLable to prequalified firms in May1986 and construction would start in early 1987 at the end of the flood seasonand is expected to be completed by end-1989. Regulated water yields from theBekok River would be available for use by the water supply treatment plants by1990. Following prequalification of contractors, bids for river improvementworks would be called in early 1987 and construction would start in mid-1987(Annex 3.2). Other works would be implemented progressively between 1988 and1990 as land acquisition progresses.

C. Project Costs

3.24 The total project costs are estimated at US$148.3 million inclusiveof $8.0 million of taxes and duties with a foreign exchange component ofUS$55.0 million or 37%. Quantity estimates were prepared for the projectworks based on feasibility designs for the Bekok Dam, feasibility designs forriver improvement and drainage works and on prefeasibility designs for roadworks. Unit prices were based on recent contracts for similar works carriedout for DID in Johor. The costs of equipment and vehicles are based on recentbid prices. Project base costs are calculated from January 1986. Physicalcontingencies of 10% were applied to works where detailed designs were avail-able, and 15% for other civil works. Physical contingencies of 10% wereapplied to equipment and vehicles and consultants. Physical contingencies areequal to 7% of base costs. Price contingencies have been calculated at thefollowing rates of projected increases, using constant purchasing parity-exchange rates and are equal to 22% of base costs:-

1986 1987 1988 1989 1990 1991-93

Local inflation rates (X) 5.0 5.0 5.0 5.0 5.0 5.0

Foreign inflation rates () 7.0 7.0 7.5 7.7 7.6 4.5

Details of project costs are given in Annexes 1.1 to 1.4 and are summarized inTable 3.2.

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Table 3.2: PROJECT COSTS

ForeignLocal foreign Total Local Foreign Total Base exchange

Component ---- K$ million - US$ million - cost (z)

Bekok dam 16.0 24.0 40.0 6.9 10.2 17.1 15 60River works 24.4 34.5 58.9 10.4 14.8 25.2 21 60Main drains 5.9 5.9 11i8 2.6 2.5 5.1 .4 50Bridges 1.0 1.0 2.0 0.4 0.4 0.8 1 50Town flood protection 1.1 1.1 2.2 0.4 0.5 0.9 1 50Secondary drainsJ roadsand tracks 9.6 9.6 19.2 4.2 4.1 8.3 7 50

Agricultural development 31.6 13.5 45.1 13.5 5.8 19.3 17 30Consulting services 1.2 2.9 4.1 0.5 1.2 1.7 2 70Incremental administration 12.6 - 12.6 5.4 - 5.4 5 -Equipment and vehicles 0.1 0.7 0.8 - 0.3 0.3 - 85Buildings 1.7 0.7 2.4 0.7 0.3 1.0 1 30Land acquisition 70.8 - 70.8 30.2 - 30.2 26 0

Base Cost 176.0 93.9 269.9 75.2 40.1 115.3 100 35

Physical contingencies 9.0 9.8 18.8 3.5 4.6. 8.1 7 52Price contingencies 33.9 24.4 58.3 14.6 10.3 24.9 22 42

Total Project Cost 218.9 128.1 347.0 93.3 55.0 148.3 129 37

D. FinancinR

3.25 The proposed Bank loan of US$55.0 million would finance the foreignexchange requirements of the project. The Government's contribution ofUS$93.3 million would be provided through annual budgetary allocations to theagencies involved in project implementation, Table 3.3.

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Table 3*3: PROJECT FINANCING(0SS millions)

World Bank Government TotalCategory Amount X Amount X Amount (Z)

Civil works 45.0 56 34.5 44 79.5 54Agricultural-development = 7.4 30 17.4 70 24.8 17

Equipment and vehicles 0.4 85 0.1 15- 0.5 1Consultancies 2.2 100 - 0 2.2 2Land acquisition - - 34.1 100 34.1 23Administration - 7.2 100 7.2 5

Total 55.0 37 93.3 63 148.3 100

E. Procurement

3.26 Procurement arrangements are summarized in Table 3.4 below.

Table 3.4: PROCUREMENT ARRANGEMENTS /a(US$ million)

Item ICB LCB Other NA Total cost/b…--z(Including contingencies) -----… -

Civil works 44.7 34.8 - - 79.5(25.6) (19.4) - - (45.0)

Land acquisition - - - 34.1 34.1(0) (0)

Agricultural development - 10.0 14.8 - 24.8(3.4) (4.0) - (7.4)

Equipment and vehicles - 0.5 - - 0.5(0.4) (0.4)

Consultancies 2- - - .2 - 2.2(2.2) (2.2)

Administration - - - 7.2 7.2(0) (0)

-Total 44.7 45.3 17.0 41.3 148.3(25.6) (23.2) (6.2) 7h1 (55.0)

'Number of contracts 3 50

/a Figures in parenthesis include amount of Bank financing.

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3.27 Civil Works. One ICB contract for construction of the Bekok Dam(US$20.9 million) and two ICB contracts for river dredging works (US$23.8-million) would be awarded following international competitive bidding (ICB)according to Bank Group guidelines. The remaining river improvement anddrainage works would not be large enough for ICE and would thetefore becarried out under contracts to be awarded following local competitive biddingprocedures (LCB) which are satisfactory to the Bank and in which foreignbidders would be eligible to participate. The contracts for secondary drains,agricultural roads, and oil palm mini-estates, which would be small andscattered in space and time, would also not be of interest to foreigncontractors and would also be awarded after locally advertised competitivebidding. The total cost of LCB works would be US$45.3 million. All ICB andLCB bidders would be prequalified by DID to standards acceptable to the Bank.

3.28 Goods and Services. Purchases of O&M equipment, service vehiclesand supplies totaling US$0.5 million would be grouped into packages forprocurement under LCB procedures in accordance with Bank Group Guidelines.Small off-the-shelf items costing less than US$35,000 each and totaling notmore than US$0.2 million, would be procured through normal Governmentprocedures satifactory to the Bank. Local competitive procedures are accept-able and foreign firms are allowed to participate. The fabrication and supplyof gates and hoists for water control structures would be carried out throughforce account at an estimated cost of less than 12 of the total projectcost. DID has been fabricating its own gates and hoists for more than30 years. Consultant services for engineering and supervision would beobtained in accordance with Bank guidelines.

3.29 Contract Review. Civil works contracts over US$2.0 million and sup-ply contracts over US$0.2 would be subject to prior review. This would coverabout 80% of the total value of all contracts. Other contracts would be sub-ject to selective post-award review.

F. Disbursements

3.30 Disbursement of the proposed loan over 8 years against: contracts andstatement of expenditures would be as follows: (a) 65% of the crst of civilworks; -(b) 55% of the replanting grants (c) for equipment and vehicles, 100%of the foreign exchange cost of directly imported items, lOOX of theex-factory cost of locally manufactured items, net of taxes, and 75% of thecost of imported items procured locally; and (d) 100% of expenditures forconsulting services. For disbursements made against statements of expendi-ture, documentation would be retained by the implementing agencies for Bankreview and scrutiny by auditors. The loan is expected to be disbursed overeight years according to the schedule of disbursements shown in Annex 2.Project completion is expected by December 31, 1993. The disbursementschedule is one year faster than that for the standard profile for Bank loansto Malaysia for area development on the basis of the readiness of engineering(para. 4.14), progress in land acquisition (para. 3.15), and the experience inimplementing the previous project. A special account with an authorizedallocation of US$2.7 million corresponding to four months' expenditure wouldbe established to facilitate disbursements.

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C. Accounts and Audits

3.31 The agencies Involved in the project are all subject to normal gov-ernment controi And audit procedures. Assurances were obtained -during nego-tiations that all agencies involved in project implementation would maintainseparate project accounts; that the special account and the accounts of theimplemuenting agencies and the Project Office would be audited annually byindepenident auditors acceptable to the Bank; and that the auditors' reportswould be furnished to the Bank within nine months of the end of theGovernment's fiscal year (para. 7.01 (d)).

IV. PROJECT IMPLEMENTATION

A. Organization and Management

4.01 Execution. Malaysia would be the borrower and the Ministry ofAgriculture (MOA) would assume overall responsibility for the project. Thesame organization and management as used in the first project would continuefor the proposed project. Two agencies would be primarily responsible for theexecution of the project, consisting of:

(a) DID (Ministry of Agriculture) for civil work, ind

(b) RISDA for agricultural development of old rubber areas (Ministry ofLands and Regional Development).

Agencies with support roles wouid include:

(c) DOA (Ministry of Agriculture) for intercropping of coconut areas

(d) Farmers Organization Authority (FOA) for agricultural development innonrubber, noncoconut smallholder areas (Ministry of Agriculture);

(e) Various research agencies for technical support of agriculturaldevelopment; and

(f) State Department of Lands and Mines for land acquisition;

(g) Bank Pertanian Malaysia (Agricultural Bank) for smallholder credit.

4.02 Project Office. The existing Project Office established for theFirst Western Johor Agricultural Development Project would be responsible formanagement and coordination of the project in line with MOA policy. TheOffite would be responsible for coordination between executing agencies,project planning and budgeting, reporting and monitoring as well as forongoing operations under the first project. Staffing of the expanded officeis largely in place and is organized under a P;oject Director, his DeputyDirector, an economist, an accounting officer, sociologist, informationofficer, and executive officer.

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4.03 Department of Drainage and Irrigation. DID would be responsible forconstructing the civil works including the dam, river training, drainage net-work, agricultural roads and bridges and buildings, and for engagingconsultants for design and construction supervision of the planned works. TheDID maintains a team headed by a senior engineer at their office near Pontianin the first project area and is competent to execute the proposed works.When the project is completed the State DID would assume responsibility foroperation and maintenance of all these civil works except buildings whichwould revert to their operating agencies.

4.04 Rubber Industry Smallholders Development Authority. RISDA wasestablished in 1973 under the Minister of Lands and Regional Development toadminister the Rubber Industry Replanting Fund of 1952. Its mandate is pri-marily to strengthen and modernize the smallholder rubber industry throughgrant financing from the Rubber Cess Fund to replant low yielding, senilerubber with high yielding clones and to promote improved production technologythrough extension, agricultural credit, processing, marketing and other ser-vices. Rubber smallholders have the option to replant with rubber or some 17other crops, but farmers choosing the latter forfeit RISDA services threeyears after planting and eligibility for future replanting grants. Untilrecently rubber was the dominant crop in the project area but smallholderinterest in replanting with rubber is declining; nationally around 70X ofannual replanting is with rubber, with oil palm making up most of the balance,but in some states more than half of all replanting is now with oil palm.Although since 1984 RISDA administration costs have been funded from the centralgovernment budget, smallholder replanting is almost exclusively financed fromthe government cess replanting fund. Replanters receive grants in install-ments during crop immaturity. Payments are spread over 3-4 years for oil palmand 6-7 years for rubber, each payment requiring a satisfactory fieldinspection report. The grant is intended to cover development inputs andmaintenance costs of replanting to first production, including land prepara-tion and planting, fertilizers, chemicals and much of the labor. The totalgrant for replants up to 4 ha is $3,705/ha for oil palm and other crops and$5,434/ha for rubber. Details are given in Annex 6.1. Participants in mini-estates (production co-operatives) are eligible for top-up credits withinterest from RISDA to meet additional costs including farm roads, improvedfield drainage and fencing. Other financial assistance from RISDA includescredits for cash cropping and land title fees, and a fully subsidizedfertilizer program for rubber replanters providing full requirements for up to4 ha for the first three production years. Family Income Maintenance Loans at$15/acrel9onth (M$37.5/ha/month) are also available for a maximum of 10 acres(4 ha), and RISDA caveats the land title until the loan is fully repaid about10 years after production starts.

4.05 RISDA's extension and farmer training services are among its mostimportant and beneficial roles for rubber smallholders. A network of districtand subdistrict offices are maintained with close farmer contacts at the vil-lage level. Similar services to ex-rubber farmers receiving replanting grantsfor other crops cease with completion of the grant payments (except purchaseof oil palm fruit bunches, see paragraph 4.04). RISDA also assists farmers inrubber marketing through Group Processing Centers for the processing ofimproved quality rubber sheet and the buying of wet sheet rubber for further

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processing. With the swing to oil pslm replantingt RISDA is taking anincreasingly active role in arranging processing of farmers' fresh fruitbunches, despite the crop being outside the Agency's mandated responsibility,as RISDA is the only agency able to help oil palm smallholders outside themajor federal schemes such as FELDA and FELCRA.

4.06 '¶o accelerate replanting and new *.roduction technology, RISDAlauuched its mini-estate program in 1979. Up to September 1984 some 28,000 haof rubber in 249 mini-estates and 4,400 ha of oil palm in 34 mini-estates hadbeen developed throughout Malaysia. A minimum area of 40 ha is required tostart a mini-estate but there is no upper limit. Participants are mostly.small farmers with land titles who agree to caveat their land to RISDAindefinitely until the full mini-estate development costs have been recovered,in return for RISDA management and a share of production income. RISDA'sfield management staff are attached to field offices, operating through farmercommittees, and are organized as supervisors (responsible for up to 200 ha ofcrop), senior supervisors (400 to 1,000 ha), assistant managers (1,000 to2,000 ha), managers (2,000 to 5,000 ha) and group managers (above 5,0O0 ha).Field operations are contracted but contractors must give preference to mini-estate farmers for labor needs. Mini-estates benefit from enhanced infra-structure developments arranged by RISDA, including access and farm roads,drains, culverts, small bridges and fences as necessary with costs fully orpartly subsidized.

-- B. Support Services

4.07 Department of Agriculture. The DOA would be responsible for agri-culture support services, primarily for farmers with crops other than rubberand oil palm which are covered by RISDA. Extension services for oil palmwould be provided in association with the Palm Oil Research Institute ofMalaysia (PORIM) for technical advice and new crop production technologies.Other DOA services include farmer training, supply of planting materials(cocoa, coffee, and fruit trees for intercropping of coconut and FOA groupdevelopments) and monitoring of potential acid sulphate soils through the soiltesting laboratory at Air Hitam.

4.08 DOA operates the national coconut rehabilitation program as part ofgovernment's policy-to alleviate poverty among coconut smallholders. TheNational Agricultural Policy proposes that export of copra be phased out ascoconut production is reduced to meet domestic fresh nut and oil demand andoffset by profitable intercrops, using coconut primarily as shade with reducedpalm density. The main intercrops are cocoa, coffee and fruit trees (princi-.pally durian, rambutan and mango). Cocoa, which does not do-well on peatsoils, is being established on the better drained alluvia but must be protec-ted from strong acid sulphate conditions. Coffee and also fruit trees 'are- -suitable for shallow peats (up to 1.5 m), but pineapple is the only satisfac-tory intercrop on deeper peats.

4.09 With the discontinuation from 1983 of DOA's subsidized conversionprogram amounting to $2,250/ha, the Agricultural Bank has been made responsi-ble for providing farmers with credit at zero or low interest rates. DOAwould continue however to provide planting materials. There are about 25,000ha of coconut in the project area mostly in need of rehabilitation.

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4.10 The DOA operates a Training and Visit extension system establishedunder the Bank-supported National extension Project (Loan 1493-iA). Theproject area extension officer/farm family ratio is about 1:660. Extensionofficers are stationed at several IntegrAted Agriculture Serv-ice Centers inthe project area. These centers, which group all agency extension servicesfor the convenience of farmers, are under the MOA which is responsible forbalanced, integrated services to meet socioeconomic needs. Within the projectarea these services would be coordinated through the project director.

4.11 Farmers Organization Authority. FOA, an agency of MOA, is responsi-ble for supervising and strengthening Farmers' Organizations and agriculture-based cooperatives. It assists farmers' cooperatives to develop group farmingand mini-estates and provides infrastructure, marketing centers, managementand technical services.

4.12 Agricultural Research. MARDI, PORIM and RRIM would be responsiblefor agricultural research needs..

(a) MARDI (Malaysian Agricultural Research and Development Institute) isa semiautonomous Federal organization under MOA and has receivedBank support under the Agricultural Research and Extension Project(Loan 1115-MA). It maintains specific crop and general agriculture-research centers in various parts of the country. In the JohorPhase I project area it has established the Peat Research Center forstudies on the management and utilization of peat and acid sulphatesoils. The results of these works will be applicable to similarconditions in che project area.

(b) PORIM (Palm 0il Research Institute of Malaysia) was established in1979. It is a semiautonomous body under Ministry of Primary Indus-tries. Research priorities are established jointly wita the indus-try and producers organizations. PORIM would be responsible forresearch and technical advice on oil palm production on peat andacid sulphate soils in the project area.

(c) RRIM (Rubber Research Institute of Malaysia), was established in1926 and is now a semiautonomous body under the Minister of PrimaryIndustries. The RIM would investigate problems-of rubber cultiva-tion in the project area using its field advisory staff and nationalresearch facilities.

4.13 Agricultural Credit. Agricultural credit needs are supplied by theAgricultural Bank. Credit demand is generally low for treecrops because ofthe funding supplied by RISDA to farmers contributing to the cess fund.Direct provision of inputs by the DOA under diversification programs alsoreduces credit demand and the Agricultural Bank's main work in-Western Johoris in supplying credit-to farmers not qualifying for other funds. In the areaof the first project, the Agricultural Bank lends about M$3 million annuallyfor cocoa, coffee, coconut and pineapples. Interest rates are at 0% or 2% inaccordance with the guidelines of the National Economic Policy.

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C. EngineerinE

4.14 Status of Engineering. Detailed design for most of the civil worksto be implemented during the first four years is at an advanced stage andshould be completed before loan signing. Topographic surveys, including crosssections for all river works, and detailed designs for improvement works onthe Simpang Kiri River have been completed. Detailed design of other riverworks would also be completed by June 1986. Detailed design for the Bekok Damwas completed in 1982. However, the original design was recently revised totake into account the findings of subsequent flood mitigation studies. As theagricultural roads will be built with a laterite surface and carry relativelylittle traffic, detailed designs are not required.

4.15 Safety of Dams. Failure of the ey;,ting Sembrong Dam and the pro-posed Bekok Dam would cause considerable da ge to agriculture in the projectarea. To assist DID in ensuring the safety of the Bekok Dam, assurances wereobtained that by December 1986 the Government would appoint a panel of expertswhose qualifications and terms of employment would be acceptable to the Bankand whose responsibility would be to: (a) review construction quality andprogress; (b) review revisions in design and construction practice; and(c) review the adequacy of the maintenance and safety program. Assuranceswere obtained that DID would carry out a maintenance and inspection programfor the Sembrong Dam, and the Bekok Dam after its completion, to determine anyactual or potential deficiencies in the conditions of the structures or in thequality of maintenance or methods of operations which might render the-damsunsafe, and initiate any necessary remedial action (para. 7.01 (e)). Copiesof each inspection report would be furnished promptly to the Bank.

4.16 Operation and Maintenance. DID would be responsible for operationand maintenance (OEM) of the Bekok and Sembrong Dams and all river and drain-age works down to secondary drains and roads. The operating rules of theflood mitigation system have been defined during the feasibility studies andwould be included in the operating manual. During construction, DID wouldcontinue to operate and maintain existing schemes in the area and would takeover the new works as completed. DID is responsible for operation andmaintenance of both drainage works and roads in the Johor Phase I area, whichis satisfactory. Staff and equipment for the Phase I project will beredeployed over both project areas, supplemented by contract works in linewith government policy.

4.17 Two types of drainage structures would require operation: thedrainage outlet structures in the-river levees and coastal bund and drainage-check structures in secondary and tertiary drains to control groundwater inareas with potential acid sulphate soils. During wet periods, drains.would beflushed out, but in dry periods the water Level would be kept up by the watercontrol structures. Culvert-type outlet structures operate automatically, butflume-type outlets require daily operation. Check structures, located insecondary or tertiary drains, will require regular operation, particularly.during the dry season.

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4.18 The major maintenance problems are weed growth and siltation in-thedrains and outlet channels. Weeds will be removed by mechanical methods,although the practicality of chemical control of weeds would beinvestigated. Assurances were obtained during negotiation that promptly afterconstruction drainage works would be transferred to Johor State £or operationand maintenance (para. 7.01 (f)). The farmers would have t4 complete andmaintain their on-farm drains as a condition for receiving replantinggrants. Extension workers would promote maintenance by farmers and trainfarmers in correct maintenance procedures. The construction of new feederdrains would make the farmers' task much simpler, since on-farm drains wouldbe no longer than 100 m. Other maintenance work includes maintenance ofaccess and field roads and clearing of maintenance tracks and culverts.

D. Progress Reporting

4.19 The Project Office would prepare consolidated quarterly progressreports and submit them to MOA and the Bank. Collection of primary data oncivil works and agricultural activities would be supplied by the executingagencies and reports would be provided on all components under the project.

E. Monitoring and Evaluation

4.20 The Project Office would continue its project monitoring role. Thesurveys of social and agricultural conditions during project preparation areadequate for baseline analysis. Lessons learned from the previ l-s projectindicate the need for closer coordination between the monitorirz and planningfunctions and for better balance between data collection and processing into ausable form (draft PPAR, December 2, 1985). Evaluation would be made by abody external to the Project Office. A project completion report would beprepared by the Project Office.

F. Environmental Effects

4.21 The environmental impact statement concluded that the project wouldhave a beneficial effect on the environment by providing drainage facilitiesin an area presently suffering from flooding and poor drainage. Improvedwater supply and drainage-would help to control water-borne diseases andmalaria. Although the project would bring about a temporary increase in theturbidity of rivers during construction, this short-term negative effect isconsidered minor and is outweighed-by the social and economic benefits of theproject. The project does not entail any forest clearance.

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V. AGRICULTURAL PRODUCTION

A. Oil Palm

5.01 The phasing of oil palm planting is shown in Table 5.1.

Table 5.1: PHASIrG OF OIL PALM PLANTING (ha)

Year -1 Year 2 Year. 3 Year 4 Year 5 Year 6 Year 7 Total

Individual holdings 700 800 1,000 1t200 1,200 1,100 1,000' 7,000Mini-estates initiated 100 100 200 400 500Q 700 1,000 3,000

Total 800 900 1,200 1,600 1,700 1,800 2,000 10000

Mini-estate areaplanted 50 50 150 250 350 550 750 2,150

No. of mini-estates 1 1 2 4 5 7 10 30

The 30 mini-estates, which must be at least 40 ha at inception - would expandto 100 ha or more as other farmers opt to join. On average it is assumed thateach mini estate would have 50 ha for development in the first year and afurther 50 ha two years later.-

5.02 Crop Establishment# Palms would be planted at a density of about148 palms!tEh- i m triangulr planting). One year nursery materials would besupplied from FELDA and private nurseries at about M$3.50 per palm. Supplyfor planting failures would amount to 10% on mini-estates and 15X on small-holdings (losses on smallholdings could be very much higher if drainage worksare not in place). On flat terrain and deep alluvial soils, legume covercrops are not generally sown but the rapid growth of palms minimizes dangersof soil erosion. RISDA supplies rock phosphate for the planting holes andadequate limestone and fertilizer for young palms for three years. After thatindividual'farmers would be responsible for fertilizer and liming.

5.03 Soils and their Management. Oil palm is suited to the predominatelyacid alluvial and organic soils of the project area, provided appropriate soilmanagement practices are followed. The pyrites - containing alluvial soils,even though improved by drainage, are potentially very acid sulphate, a condi-tion which can be provoked by excessive drainage. The experience of theestate sector is that peat soils of up to 5 m depth (moderately deep peats)with appropriate management can be successfully used for growing oil palm.This includes rigorous drainage control to prevent excessive drying and thedevelopment of acid'sulphate conditions for which the soil water table shouldnot fall below about 0.7 m; annual flushing of drains to remove acidity accu-mulation, an adequate fertilizer regime particularly in supplemental copper,

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boron and potash nutrition, and annual dressings of ground magnesium limestoneat rates of at least 400 kg/ha to slowly improve soil pH ratings. DOA willexpand their soil testing laboratory in the project area to monitor soil acid-.ity in all drainage scheme areas.

5.04 Yields and Production. The estimated oil palm yield profiles areshown for mini-estates and individual holdings in Annex 6.2. The mean annualyield over 25 years of production is estimated at 17.0 tons/ha for mini-estates and 14.5 tons/ba for individugl holdings. Peak production of 23 and20 tons/ha respectively would be reached about 10 and 11 years after planting.The higher yields in mini-estates reflect the benefits of RISDA management,including a higher average density of palms, better maintenance, and higherfertilizer inputs. Mini-estate production may decline rapidly after about 12years, when farmers have paid off their loans and assume full managemtresponsibility. The Government is aware of this and is considering mechanismsto keep mini-estates intact, for example by extending RISDA's managementperiod or forming cooperatives. Without the project most farmers would retaintheir old rubber, yielding only about 300 kg/ha, or in face of labor shortagesthey might convert to oil palm with prospects of poor establishment and lowyields due to flooding.

5.05 Harvesting and Processing. Initial harvesting of fresh fruitbunches is expected in the third year after planting and yields then riserapidly, peaking in 8 to 10 years. From year 12 yields slowly decline, andincreasing beight of the palms add to the difficulty of harvesting. The eco-nomic life of the palms is about 25 years. Fresh fruit bunches would be con-tract harvested on mini-estates and by farmers themselves on individual hold-ings, and sold for processing to local dealers or factories in the generalarea. There is already adequate factory capacity-within reasonable distanceof all parts of the project area and no new capacity will be provided underthe project.

B. Rubber

5.06 The project would replant about 3,000 ha of old rubber representingabout 1SZ of the total of old rubber land with modern high yielding clones.The annual rubber replanting rate, which was 900 ha in 1984, and whichdeclined steeply in 1985 due to cess fund constraints, is assumed to average400 hatyear over the project period. Further, the swing to oil palm wouldgain momentum as more low production areas are drained and protected fromfloods. The phasing of rubber planting is shown in Table 5.2.

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Table 5.2s PHASING OF RUBBER PLANTING (ha)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total

800 800 400 400 200 200 200 3-,000

Individual farm sizes average 2.5 ha. The formation of rubber mini-estates. isnot anticipated as farmer interest in them is low; but many individual farmerswith contiguous holdings will join RISDA's Group Replantir" Schemes, in whichRISDA arranges contract clearing, planting and the first years of mainte-nance works, to benefit from RISDA mAnagement and technology inputs. Charac-teristically these schemes are 10-20 ha units. After the contract period,farmers will assume full responsibility for all maintenance. Most rubberreplantings will be located on the slightly more elevated peripheral lands ofthe project area characterized by sedentary soils and little affected by theproject drainage works program.

5.07 Yields and Production. The assumed yield profile for rubber isgiven in Annex 6.2. The mean annual yield projected over 20 years is 1070 kg/ha. While without the project the large area of unimproved rubber would onlyto yield about 300 kg/ha and would finally be abandoned, with the project,there would be a net loss in total rubber production for about 22 years due tothe large-scale conversion to oil palm. Well grown new rubber would be readyfor tapping at the end of six years after planting. Yields would peak about 9years later and then slowly decline, depending on maintenance standards. Someuse of yield stimulant can be assumed in later years although currently thepractice is little used by small farmers.

5.08 Crop Establishment. Recommended clones would be planted at a den-sity of about 500 trees/ha but losses during establishment would reduce thestand to about 475 trees/ha. Planting material, mostly as bare budded stumps,would be supplied from RISDA's central Johor nurseries. Rubber tolerates lowpH soils of 3.5 to 4.5 hence liming will not be necessary.

5.09 wield Maintenance. To receive grant payments, rubber farmers arerequired to establish legume cover crop in the interrows, maintain the rubberin a well-weeded condition, attend to tree disease and pruning requirementsand apply recommended rates of fertilizer. Standards are ensured through reg-ular RISDA inspectic-n. Currently farmers are eligible for free (subsidy)fertilizer for three additional years after the rubber comes into productionto promote good yields for a longer period than commonly achieved in small-holdings.

5.10 Harvesting and Processing. RISDA has established a number of GroupProcessing Centers in the project area to prepare clean sheet rubber. Cur-rently, because of low rubber prices and the labor involved, many farmers pre-

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fer to sell raw cup lump to dealers at a lower-price and save on the consider-able work involved in making rubber sheet.

C. Crop Diversification

5.11 Under the rubber replanting grant administered by RISDA, farmers maydiversify into any of 17 crops other than rubber (see pare. 4.04). Oil palmis overwhelmingly the alternative chosen but nationally nearly 9% of theapproved grant area in the period 1979-83 was used for other crops, princi-pally cocoa, fruits (noncitrus) and coconut. In Johor- State for 1983, 13% ofthe area developed under the grant was converted to other crops consisting offruits (noncitrus) 64%, cocoa 24Z, coconut 8Z, and citrus, fodder, coffee andpineapple 3%. Under the project, it is expected that about 15% of theagricultural a:ea would be developed as diversified crops. The grant paid forall diversifietd crops is the same as for oil palm.

D. Farm Incomes

5.12 Farm models were prepared for the four major types of farmdevelopment expected to take place. The existing old rubber is estimated togive a net farm income of M$1,500/year equal to M$6/day worked. The incomelevel is less than one-half of the officially estimated poverty income level(M$4,200/year) and the return to labor is much less than the M$10/dayunskilled rural wage rate. With the project, the highest net farm incomewould be obtained by planting new rubber (Table 5.4) under current priceexpectations. However, growers are expected to retain greater interest in oilpalm where the fewer days worked give a return to labor (M$30/day), more thandouble that of rubber (M$14tday), and permit greater off-farm work. Growerselecting to join in a mini-estate group (production cooperative) would receivea marginally higher return from their 2.5 ha share resulting from better man-agement. Some interest is expected to be shown in crops other than rubber andoil palm for local market supply. Rates of return on all farm models aresatisfactory.

Table 5.4: FARM INCOMES(M$,2.5 ha/year)

WithoutProject With ProjectRubber Rubber Oil palm Oil palm Diversified

(Smallholder) (Mini-estate) Crops

Net farm income 1,500 6,000 3,900 4,425 4,600Returns/man-day 6 14 30 34 30Financial Rateof return % - 13 12- 16 19

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VI. ECONOMIC BENEFITS AND JUSTIFICATION

A. Economic Evaluation

Benefits

6.01 The project benefits would be (i} reduction of flood damage of farmsand villages resulting from Bekok dam construction and river training, (ii)increased value-added from replanting old rubber trees with new clones and oilpalm, bringing swampland into production and diversification of coconut inaccordance with sector objectives (para. 1.06), (iii) provision of drinkingwater to towns in Batu Pahat and Ketuang district. Other nonquantifiablebenefits would accrue such as improved road access for commuters to urbanemployment, and institutional strengthening. The project would directlybenefit some 30,000 smaltholder families. At full production, it would resultin an incremental annual output of 4,100 tons of rubber, 40,000 tons of palmoil and 900 tons of diversified crops. After the project works are completed,another 72,500 ha would remain to be planted which should produce another20,000 tons of rubber, 200,000 tons of palm oil and 4,500 tons of diversifiedcrops annually. Flood control benefits to agriculture are captured in theestimation of incremental production with and without the project. Floodcontrol benefits to urban areas are assessed on the basis of the annual valueof recorded damage during recent years, varying between M$1 million andM$4 million. Most of the direct project benefits would accrue to about 30,000smallholder families. The smallholders, over 95Z in the poverty target group,have average annual incomes of US$350 per capita. With the project, averageincomes are expected to rise to about US$580 per capita per year. While thiswould be above the absolute poverty level of US$360 per capita per year itremains below the average per capita income of about US$2,000 per year.

Economic Analysis

6.02 Joint costs are allocated to the flood control and water supply com-ponents of the Bekok dam by comparing the present worth of costs and benefitsof the dam built for flood-control alone and that of the dual-purpose dam(separable costs-remaining benefits). The benefits of the water supply andthe associated costs, estimated at 482 of dam costs, are excluded from therest of the analysis. Other components were included at full costs.

6.03 The economic rate of return for the project is estimated at 14Xunder the assumptions shown in the cost tables and crop models. The cost andbenefit streams are shown in Annex 4.1. The rate of return is relativelyinsensitive to variations in basic assumptions. For example, commodity priceswould have to fall another 25Z from their present depressed levels before theinternal rate of return switches below 10X. Costs would need to riseA40Z toproduce the same effect. Exclusion of urban infrastructure benefits entirelyreduces the IRR by only less than 1Z. Commodity prices used are shown inAnnex 4.2 and are based on Bank projections updated in January 1986. Theincremental output of rubber and palm oil represents only 0.3% and 1% respect-ively of national production and would not cause market problems. Labor iscosted at the full wage rate assuming the marginal opportunity cost of laboris equal to the market wage.

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B. Project Risk

6.04 The major risk is from land acquisition delays and government bud-getary problems. In the previous project, land acquisition which became aserious impediment to project implementation was eventually overcome by therecruitment of an extra 48 professional staff in the Lands Office(para. 3.15). Adequate provision foi the project has been made under theFifth Malaysia Plan. However, further spending cuts could influence the rateof implementation. These two risks have been incorporated into the projectdesign by having a conservative pace of implementatior over seven years,including a lead time of one year (1986) prior to coi_encement of works duringwhich land acquisition and further detailed design would proceed.

C. Cost Recovery

6.05 Direct beneficiaries of the project works would be users of the townwater supply, urban property owners and farmers. Costs of the town watersupply would be recovered through the tariff increase agreed in the JohorWater Supply Project (Loan 2654-MA) for US$62 million, which was presented tothe Board on March 26, 1986. Recovery of costs for protection of urban landfrom floods would be made through reassessment of the taxable value of theproperty for annual land tax payment.

6.06 Recovery of costs for agricultural land improvement would be madethrough the established practice of adding a betterment levy to the land taxupon completion of project works. The current levy is M$14/ha/year,representing 30% of the cost of operation and maintenance of drains and roads.Almost 1OOZ of drainage levies due in completed (gazetted) areas are routinelycollected and those for Johor State are the highest in Malaysia. Indirectcost recovery is made through export taxes on rubber and palm oil and throughthe replanting and research cesses on rubber.

6.07 Johor State drainage levies were last adjusted in 1970. They arecurrently under review together with those for the rest of Malaysia, withinthe context of cost-sharing between the Federal and State governments and thebeneficiaries. Under the First Western Johor Agricultural DevelopmentProject, the Johor Government has been reluctant to gazette areas as completedbecause this requires it to be responsible for operation and maintenance ofthe scheme. Nevertheless, under the first project, Federal governmentallocations remain satisfactory for adequate system operation andmaintenance. Timely gazetting of completed scheme portions and periodicreview of betterment levies are needed. During negotiations assurances wereobtained to this effect [para. 7.01(f)].

VII. AGREEMENTS REACHED AND RECOMMENDATION

7.01 During negotiations assurances were obtained on the 'llowing:

(a) The Government would acquire or make available in accurdance with aplan of action satisfactory to the Bank, land and interest inrespect of land for project purposes (para. 3.15).

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(b) The Government would compensate people required to move as a resultof construction of works under the project, in accordance withprevailing regulations (para. 3*15)4-

(c) The Government would by December 31, 1986, employ consultants toassist in supervision of construction of Bekok Dam and o- riverworks (para. 3.19).

(d) Separate project accounts would be kept by DID, RISDA, and theProject Office, and would be audited annually, together with thespecial account, by auditors acceptable to the Bank; the auditors'reports would be sent to the Bank within nine months of the close ofthe Government's fiscal year (para. 3.31).

(e) The Government would by December 31, 1986 appoint a panel of expertswith composition and responsibilities satisfactory to the Bank withregard to the Bekok Dam and related structures to

(i) review construction quality and progress;

(ii) review revisions in design and construction practice; and

(iii) review the accuracy of the maintenance and safety inspectionprogram (para. 4.15).

(f) The Government would, under arrangements satisfactory to the Bank:

5i) promptly after completion of each segment of works, transferthe responsibility for operation and maintenance of the worksto the State of Johor (para. 4.18); and

(ii) take all necessary measures to ensure that the State of Johor:

a. gazette areas benefitting from drainage works constructedunder the project to enable the State of Johor tocollection drainage charges;

b. collect such drainage charges; and

c. periodically review the drainage charges (para. 6.07).

7.02 With the above assurances, the proposed project would be suitablefor a Bank loan of US$55.0 million to Malaysia. The loan would have a repay-ment period of 15 years, including a grace period of three years at the stan-dard variable interest rate.

IIALAYSTASECOND VESTERN JONOR AORICULTULRAt NEV. PROJECT

PROJECT COST SU

(NS '000) (US) '000) 2 Total- ---------- X -Foreign 'uDLocal Foreign Total Local Foteign Total Ebhow.e costs

4. EItKOK A 159t85.2 23y977,8 399963.O 6t831.3 10,246.9 17.078,2 60 15R. SENDRONS RIVER MORKS 2,074.5 2,535.5 4,610.0 886.5 1,083.5 1,970.1 55 2C. SINA KIRI, SIIPANQ KANAN LOER BEKOK AND PATti PANAT RIVER VORKS 164960#0 25440.0 429400.0 79247.9 109071.9 18'119.7 60 16D. EKOKD RIVER UPSTREAH OF PARIT SRI GUNON6 3P600.0 4,400.0 8.000.0 14538*5 188O.3 3.418.8 55 3E. CAtCHNENT SEPARATOR