Integrated Citarum Water Resources Management Investment Program - Project 1

Citarum River Basin (source: ADB.org)

Summary

The Integrated Citarum Water Resources Management Investment Program funds a range of interventions across the water sector that relate to water and land management necessary to pursue the introduction of integrated water resources management (IWRM) in the Citarum River basin (CRB). A road map (or strategic investment plan) has been developed that sets out the agreed interventions that will address IWRM key issues under the Investment Program. ADB and the Government of Indonesia are using the Multitranche Financing Facility to finance these agreed interventions up to 2023. The estimated cost of implementing the projects of the road map is $3.5 billion over 15 years, of which the Investment Program accounts for $921 million. The expected impact of the Investment Program is reduced poverty and improved health and living standards in the CRB, and the expected outcome is improved IWRM in the CRB.

Project 1 is the first of the four project tranches included in the Investment Program in which ADB will provide financial assistance and is the subject of this request for compliance review. Project 1’s estimated total cost is $103.4 million. Of this amount, ADB provided financing in December 2008 of $20.0 million from its ordinary capital resources (Loan 2500) and $30.0 million from the Special Funds resources [Loan 2501(SF)]. In addition, ADB arranged a GEF grant financing of $3.75 million (Grant 0216) in May 2008, which it administers. Project 1 will rehabilitate the 54 km Curug-Bekasi stretch of the West Tarum Canal (WTC). Other subprojects include: (i) water supply options for Bandung, (ii) the development of a basin river quality improvement strategy and action plans, (iii) watershed management and biodiversity conservation, (iv) land and water management, (v) support community- and NGO-driven initiatives for improved water supply and sanitation, (vi) institutional strengthening for IWRM, and (vii) program management. The rehabilitation of WTC, with the main objective of improving the flow and quality of water that provides about 80% of the surface water supply to Jakarta will involve involuntary resettlement of people living alongside the canal.

Progress Report