Selanjutnya

MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE REPUBLIC OF ITALY

CONCERNING COOPERATION ON THE
"LOMBOK ISLAND GROUND WATER DEVELOPMENT PROJECT"

MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE REPUBLIC OF ITALY

CONCERNING COOPERATION ON THE
"LOMBOK ISLAND GROUND WATER DEVELOPMENT PROJECT"

The Government of the Republic of Indonesia and the Government of the Republic of Italy, within the framework of the
Agreement regarding Scientific and Technical Cooperation of
November 24, 1972 and of the Cooperation Agreement of

February, 1985;
considering the common interest and mutual benefit of both
countries in promoting cooperation on the ''Lombok Island
Ground Water Development Project";
given the promising results of the "Lombok Ground Water Investigation Pro ject" carried out in 1984-1986 with the financial
assistance of the Government of the Republic of Italy;
have agreed as follows :

ARTICLE I
The Government of the Republic of Indonesia and the Government of the Republic of Italy shall cooperate in the Lombok
Island Ground Water Development Project.
The Government of the Republic of Indonesia will designates
the
Directorate General of Water Resources Development
(DGWRD) as the Agency responsible for the implementation of
its obligations under this Memorandum.
The Government of the Republic of Italy will designates ELCElectroconsult of Milan as the Agency responsible for the
implementation of its obligations under this Memorandum.

1


ARTICLE II
The objective of the cooperation referred to in Article I of
this Memorandum,
is
(1} the implementation of tubewell
irrigation over 1 650 ha, through the construction of an
adequate number of wells and irrigation schemes, as a first
phase of large scale development over two areas totalling
40 000 ha gross area located in East and North Lombok and (2)
the assessment at feasibility level, of the p6tential large
scale development of groundwater irrigation relevant to the
same two areas.
The cooperation will therefore cover the following activities:
planning and design of new irrigation schemes;
technical assistance to Project's implementation;
procurement of equipment and materials required by
the Project;
supervision of construction works, including the
installation of the equipment, carried out under

the responsibility of DGWRD;
training of Indonesian personnel;
transfer of knowledge;
study, at feasibility level, of the Large Scale Groundwater Development on Lombok.
A detailed description of the above activities is set
in the Technical Annex to this Memorandum.

forth

The Technical Annex to this Memorandum of Understanding form
an integral part of this Memorandum.
ARTICLE III
The financial resources necessary to carry out the Lombok
Island Ground Water Development Project are made available by
the Government of Indonesia and the Government of Italy.
The Government of Indonesia will utilize internal budget and
funds made available by IBRD to bear the construction costs
of the Lombok Island Ground Water Development Project.
Funds made available by the Government of Italy will have the
form of a grant covering the costs of foreign consultancy,

the cost of special equipment, and the cost of pumps and
motors for wells.
2

The sharing of project costs and financing is detailed in the
Technical Annex to this Memorandum.
ARTICLE IV
Research findings of the cooperation under this Memorandum
shall be published upon mutual agreement between the two
Governments.
ARTICLE V
Any dispute arising out of the interpretation or implementation of this Memora1idum, shall be settled amicably by
consultation or negotiation between the two Governments.
ARTICLE VI
1.

This Memorandum shall enter into ヲッイ・セ@
on the date of
its signature and shall be valid until the completion of
the cooperation.


2.

This Memorandum and the Technical Annex, may be amended
at any time with the mutual consent of the two Governments by Exchange of Letters.

Done at Jakarta, on the fourth day of January, 1988 in two
original copies of three pages in the English Language.

For the gッ
the rセ」@

For the Government of
the Republ :i.6 of Indonesia
Signed



イョュ・エ@


of
of Ital y

Signed

dイ

iイN@
SUYONO SOSRODARSONO
Minister of Public Works

GIORGIO VECCHI
Ambassador of Italy
to Indonesia

3

TECHNICAL ANNEX
TO


THE

MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF THE REPUBLIC OF ITALY

11

CONCERNING COOPERATION ON THE ,_....
LOMBOK ISLAND GROUND WATER DEVELOPMENT PROJECT"

TABLE OF CONTENTS

1•

THE PROJECT

A1-1


1•1

1 •2

Background and Project's Justification
Project Description and Objectives

A1-1
A1-2

2.

PLAN OF OPERATIONS

A2-1

2 •1

Work Schedule


A2-1

3.

PROJECT COSTING AND FUNDING

A3-1

3.1

3.2

Project Cost
Project Funding

A3-1
A3-1

4.


CONTRIBUTION OF THE GOVERNMENT OF ITALY

A4-1

4. 1

4.2

General
Alloca t ion of Funds

A4-1
A4- 1

4.2.1
4 . 2.2

Engineering Services
Equipment and Materia l s


A4-1
A4-3

5.

CONTRIBUTION OF THE GOVERNMENT OF INDONESIA

A5-1

5. 1
5.2
5.3
5. 4
5. 5

General
Personnel
Services
Equipment and Materials
Facilities

A5-1
A5-1
A5 - 2
A5-3
A5-3

I-1

1

THE PROJECT

1.1

Background and Project's Justification

Lombok is a part of the Nusa Tenggara Barat (NTB) province
and encompasses some 4 800 km2 with a population of 2 million
(1984) and an annual growth of 2.4 % .
Agriculture is the primary activity, employing about 50% of
the labor force and accounting for more than 50% of the Gross
Domestic Product . Irrigated agriculture is well developed on
Lombok. Wherever surface water is available, it is collected
and then distributed through an impressive network of canals.
Notwithstanding this apparently favorable situation, Lombok
suffers heavy socio-economic discomfort , primarily due to the
present demographic pressure.
In recent years, decision makers at provincial and national
level awarded a high priority to actions aiming at increasing
the extension of irrigated lands .
In the decade 1972-82,
agricultural production increased dramatically (from 0.1
to
0.24 tons of rice per capita), as a consequence of the
further implementation of surface water irrigation schemes.
However , present patterns in development have also had the
undesired effect of widening disparities between surface
water irrigation beneficiaries and farmers of rural areas
where surface water supplies are deficient .
Wide areas of
the island are without readily exploitable surface water
resources . The availability of surface water does not always
coincide with centres of population; in the past, inadequate
rainfall
had resulted in hardship or famine for
the
inhabitants of the "tanah malit", or critical areas, located
in the centre of Lombok .
Ground water resources are, therefore, essential in raising
living standards in less privileged parts of the island. In
1983, in response to a request of the Government of Indonesia,
the Government of Italy provided technical and financial
assistance to promote ground water investigations in those
parts of Lombok deficient in surface water supplies.
The
study, carried out in cooperation with the Directorate General
of Water Resources Development (DGWRD), Ministry of Public
Works,
under the Lombok Island Ground Water Investigation
Project, revealed the existence of good quality ground water
resources in the northern and eastern parts of the island ,
suitable for tubewell irrigation development .

A1 - 1

The potential of both the North Zone and the East Zone is so
promising in terms of ground water and land resources that
immediate implementation of tubewell irrigation in these two
Zones
is proposed under the
Lombok Island Ground Water
Development Project (the Project).
1 .2

Project Description and Objectives

The Project aims at developing groundwater resources in two
surface water deficient areas of Lombok, the North Zone and
the East Zone, covering an aggregate 40 000 ha gross (Fig.1-1 ).
The Project includes the following undertakings :
implementation of four Pilot Irrigation Schemes (total
area of about 60 ha) already designed and commanded by
four existing wells;
design and implementation of groundwater development over
an area of 1 590 ha, considered as the "Phase One" of a
Large Scale Groundwater Development;
feasibility study of the possibility of a Large Scale
Groundwater Development in the two areas considered, which
might reach some 5 000 ha or more.
The construction of the Phase One Irrigation Schemes will be
based on the experience gathered during the implementation of
the Pilot Schemes.
The irrigation units to be constructed
will be of 7 to 15 ha in size, each supplied by a well equipped with turbine or centrifugal pumps, according to depth to
water conditions. The distribution system will be buried PVC
pipes with outlets every 0.5-1 ha.
The main objective of the proposed ground water development
on Lombok is to increase crop production and farmers income
in the above mentioned Zones by introducing tubewell irrigation systems.
The Project will cover areas where practically all the
population depends on agriculture. Since no surface water is
available for irrigation, the development of ground water is
the only way to substantially improve the current production.
In fact, where today scarcely one crop a year is grown, three
crops could be grown with the Project. The Project is expected therefore to have extremely positive effects, by increasing income for some 1 900 families (2 or 3 times the present

A1 - 2

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income}, by lowering unemployment and by providing an ample
supply of domestic water of very good quality and ready at
hand.
A second objective of the Project would be institution building to ensure that Project works are effectively
and
efficiently implemented, and O & M of completed systems would
enable predicted benefits to be obtained.

A1 - 3

2

PLAN OF OPERATIONS

2.1

Work Schedule

The Project covers a four year period.
In accordance to the
work schedule (Fig. 2-1 ), Project activities will develop as
follows :
in Year One the Project will start with the usual preparatory activities, namely the preparation of technical
specifications and tender documents for materials and
equipment procurement and for work implementation. Vertical
aerial photographs at the scale 1/10 000 of East and North
Lombok will also be taken and enlarged to 1/2 000 scale
for supporting irrigation schemes design. A detailed work
program will also be prepared.
A key activity in Year One will be the motivation of
farmers who wish to have their lands included in a ground
water irrigation scheme.
Year One sees also the construction of four Pilot Schemes
which will be supplied by wells already drilled during the
previous investigation phase. The prompt commissioning of
these schemes as well as their construction and operation
is very important to get first hand experience in view of
all future developments.
During Year One, a bench-mark work for future monitoring
and evaluation studies and the required surveys in the
areas not yet covered by pre-feasibility investigations
(North of Labuhan Lombok) will be carried out.
It is essent ial, that a first batch of equipment and
materials for well and irrigation system construction be
delivered to the Project by the end of Year One.
Accordingly, contracts for work implementation should be awarded
well in advance of this date:
in Year Two the drilling of the new 160 wells will start
and will be completed by the end of the Project.
Concurrently, design of the new irrigation schemes will begin
and will be followed by immediate construction and operation.
All supporting actions aiming at involving farmers
in tubewell irrigation development will be also carried
out.
In Year Two monitoring and evaluation procedures
will also start, in order to verify the effectiveness of
the implemented works and the farmers' response to the new
facilities;

A2-1

Fig.

2.1 -

LO"BOK ISLAND GROUND NATER DEVELOmNT f'ROJECT
NORK SCHEDULE
2nd Year

1st Year
: 1 :1 :3 :4

:s

:6 :1

:a :9

4th Year

3rd Year

: 10: 11: 12m:i4: 1s:16: n: is: 1rno: 21: 22: rn 24:2S:21>:2ma:29:30: 31:32:33:34:3s:3o:3ma:m4o:41:42: 43:44: 45 :46: 4rns:

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:t .PREPARATORY ACTIVITIES
a.
b.
c.
d.

llobilization
+--+--!
Preparation of Technical Specification for Equip. le llaterials: I I I I
Planning of Constr. Norh !Neils le Irrigation Syste1sl
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Planning of Technical Assishnce Activities
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:2.PURCHASE AND INSTALLATION OF SPECIAL EQUIPllENT.
a. Vehicles
b. Office equipmt
c. Workshop Equip1ent
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:3. TUBEllELLS IRRIGATION IllPLEllENTATION (EAST ZONEl
3.l ·llpluenhtion Construction of 2 Pilot Sche1es (29 hal
3.2 I1ple1entation construction of lrrig. Schemes 11000/1200 hal
3.2.1 Drilling Caapaign (120 Nellsl
a. Proc11reaent of Drilling Equip. l Nell llaterials
b. Neils Construction

.----.--1-

3. 2. 2 Irri gilti on Scheaes Construction
a. Pu1ps and llotor Procureaent
b. Procureaent of Other Equipsent
c. Design and Construction of Irrigiltion Scheaes

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:4. TUBEllELLS IRRIGATION lllPLEllENTATION !NORTH ZOHEI
4.1 Iapleaentation of Two Pilot Irrigation Scheaes 132 hal
4.2 lapleaentation of Phase One Irrigation Schemes (400/600 hal

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4.2.1 Drilling Caapaign
a. Procureaent of Drilling Equip. le Nell llaterials
b. Neils Constrnction
4.2.2 Irrigation Scheaes Construction
a. Pu1ps and llotor Procureaent
b. Procureaent of Other Equipaent
c. Design and Construction of Irrigation Scheaes

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:s. TECHNICAL ASSISTANCE TO IRRISATION SCHEllES 0 & "
a. Faners llotivation Caapaigns, Organization
of Supporting Services
b. Training of NUAs
c. Agro-socio-econo1ic Evaluation and Project llonitoring

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:6. FEASIBILITY STUDY OF LAR6E SCALE GROUND NATER DEVELOPMENT
:7. REPORTING
a. Quarterly Reports
b. Inception Report 1 lnteri1 Report
c. Final Reports

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in Year Two, further procurement of equipment and materials
will be undertaken, so as to enab le construction operations
to proceed according to the program, throughout Year Three
and Year Four;
Year Four will see the conclusion of this Phase One
program.
During Year Four the Feasibility Study of large
scale ground water development will also start and be
completed .
All works being concluded, reports will be prepared showing
the results obtained and the recommendations for future
development.

A2 - 2

3

PROJECT COSTING AND FUNDING

3. 1

Project Cost

The overall Project cost has been estimated at USD 7.8 million
and includes:
equipment and materials necessary for the implementation
of works (drilling and well completion materials; pumps
and motors for wells; PVC pipes and outlet valves for
distribution systems;
special equipment inclusive of
vehicles, office equipment and workshop equipment);
construction costs relevant to the drilling of 160 wells
and the installation of 130 km of buried PVC pipes.
Appurtenant works such as pumphouses, access roads and
others as applicable, are also included;
engineering services of both a Foreign Consultant Team and
a supporting Local Consultant Team;
running costs of the Project (=local costs).

3.2

Project Funding

The overall cost of the Lombok Island Ground Water Development Project will be borne by the Government of Italy and by
the Government of Indonesia. The sharing of Project costs is
shown in Table 3.1.

A3-1

Table 3. 1

LOMBOK ISLAND GROUND WATER DEVELOPMENT PROJECT
PROJECT COSTS AND ALLOCATION OF FUNDS

Government of
Italy

Government of
Indonesia/IBRD

(million (Thousand (Thousand USD
Liras) USD equiv.)
equivalent)

1 . Equipment and Material
1. 1
1•2
1.3
1.4
2.

Drilling and well
Completion Equipment
Pumpsets and Motors
Equipment for Irrigation Scheme
Special Equipment

314
1 726

328

474

365

734

Construction Works
2. 1
2.2

Wells and Appurtenant
Works
Irrigation Schemes
and Appurtenant Works

717
312

3 . Engineering Services
3. 1
3.2
3.3

Foreign Consultant
Local Consultant
Executing Agency
Overhead

3 953

3 040
314
673

TOTAL

6 1 53

TOTAL (Thousand USD equiv.)

=

4 733

4 733 + 3 064

3 064(2)
=

7 797

Note :
1)
2)

1 USD - 1 300 lit = Rp 1 640
Administration costs and contingencies not included

A3-2

4

CONTRIBUTION OF THE GOVERNMENT OF ITALY

4. 1

General

The Government of Italy intends to contribute to the implementation of the Lombok Island Ground Water Development Project
with substantial technical and financial resources.
The contribution of the Government of Italy will take the
form of a grant of Italian Liras 6.153 billion (six billion
one hundred and fiftythree million Italian Liras), thus covering about 60% of Project total estimated cost.
The funds required to finance the Project will be made available to the Government of Indonesia within the frame of the
Law no 49 of February 26th, 1987, which regulates the Italian
Foreign Aid Policy.
4.2

Allocation of Funds

The funds granted by the Government of Italy to the Government
of Indonesia will be allocated to cover the costs of the
following items :
a.

engineering services (Foreign Consultant only) in
Indonesia and in Italy;

b.

pumpsets and motors for wells;

c.

special equipment (vehicles, office equipment and
workshop equipment).

4.2.1
Engineering Services
A consultancy team from ELCElectroconsult of Milan is being recruited by the Italian
Foreign Aid Agency (Direzione Generale per la Cooperazione
allo Sviluppo), Ministry of Foreign Affairs, to assist the
Government of Indonesia in the implementation of the Lombok
Island Ground Water Development Project.
The relationship between the Italian Foreign Aid Agency
(Direzione Generale per la Cooperazione allo Sviluppo),
Ministry of Foreign Affairs, on behalf of the Government of
Italy, and ELC-Electroconsult will be regulated by a "Contract
for Engineering Services" which will be mutually agreed and
signed by both parties.

A4-1

ELC-Electroconsult will provide the following services:
a.

collection, analysis and evaluation of all existing data;
assessment of present situation;

b.

preparation
of technical specifications and
tender
documents relevant to all the equipment and materials to
be supplied to the Project and to the contracts for construction of wells and distribution systems.
Assistance
to DGWRD in the evaluation of bid documents;

c.

assistance to DGWRD in the implementation of four Pilot
Irrigation Schemes (60 ha) including demonstrations of
system operation, irrigation methods, on-farm water management and selection of adequate cropping patterns.
The
Consultant shall also assist the DGWRD in establishing
and organizing easy-to-manage Water Users' Associations;

d.

assistance to the DGWRD in the implementation of Phase
One Irrigation Schemes (1 590 ha).
Activities include,
among others, detailed design of distribution systems,
selection of drilling sites, planning and supervision of
drilling operations, supervision to distribution systems
construction, organization of O & M of the irrigation
schemes, assistance to farmers in water management and
agricultural extension,
technical economic and financial
monitoring of Project's achievements;

e.

preparation of a feasibility study over an aggregate area
of 40 000 ha, to assess the ground water potential
relevant to the East Zone and the North Zone,
in view of
a future Large Scale Ground Water Development in these
Zones.
In the frame of this feasibility study the
Consultant is requested to carry out studies and investigations as follows:
land and water resources assessment;
assessment of present agricultural conditions and
development potential;
planning of the agriculture support services necess ary
to implement Large Scale Ground Water Development;
assessment of present socio-economic and institutional
aspects relevant to the study area;
planning and design of future tubewell
schemes;

irrigation

preparation of implementation and disbursement
schedules of the proposed Large Scale Ground Water
Development;

A4-2

economic and financial analysis relevant to the
proposed Large Scale Ground Water Development;
f.

preparation of technical reports in english, indonesian
and italian language as per Project's requirements;

g.

transfer of knowledge to the indonesian counterparts;

h.

organization of an appropriate training program for DGWRD
staff in Italy, for a total of 9 m/m;

i.

establishment of an effective information system in order
to keep the Client in Italy constantly up-dated about the
progress of works and Project's major achievements.

In order to carry out the above services, the Italian Foreign
Aid Agency, has requested the Consultant to provide expertise
in the field of:
geohydrology
contract engineering
hydrology
drilling engineering
mechanical engineering
computer science
irrigation engineering
agronomy and water management
socio-economy
over a four year period (Fig. 4.1 ).
Only qualified and
experienced personnel with long experience in tropical agriculture development and deep specialization in their respective fields will be accepted as member of the Foreign Consultant Team. A Resident Manager will be the on-site responsible
of all the activities carried out by the Foreign Consultant
Team.
A Project Director, based in Italy, will exert the
overall supervision of the Project, coordinating the activities of the home-based Supporting Staff and keeping liaisons
with the Italian Foreign Aid Agency for appropriate interactions between the Client and the Consultant.
4.2.2 Equipment and Materials
The Government of Italy,
through the Italian Foreign Aid Agency (Direzione Generale
per la Cooperazione allo Sviluppo), Ministry of Foreign
Affairs, intends to support the implementation of the Lombok
Island Ground Water Development Project
by supplying the
DGWRD with the equipment and materials listed in Table 4.2,
for a total amount of Italian Liras 2.2 billion (two billion
and two hundred million Italian Liras), equivalent to USD
1 .693 million at the current exchange rate.

A4-3

The Italian Foreign Aid Agency, in the frame of the ''Contract
for Engineering Services" referred to in section 4.2.1 of
this Technical Annex, designates ELC-Electroconsult of Milan
as the Agency responsible for the procurement of the equipment and materials listed in Table 4.2.
The items listed in
Table 4.2 will be purchased in Italy.
The Consultant will be requested to follow the
procedure established by the Italian Foreign Aid
follows :

procurement
Agency, as

a.

preparation of the technical specifications relevant to
the pumpsets, motors and special equipment listed in
Table 4.2. This activity will take place in Indonesia;

b.

preparation of bidding documents and invitation of a
selected number of suppliers to participate in the Bids;

c.

technical and economic evaluation of the bids.
Preparation of a Bid Assessment Report inclusive of all
data and information necessary to support the selection
of the proposed winning suppliers.
The names of the
suppliers will be notified to the Italian Foreign Aid
Agency, in charge of the final approval of the awarded
suppliers;

d.

signature of the Supply Contracts between ELC-Electroconsul t and the awarded suppliers.
A copy of this
Contract will be sent to the Italian Foreign Aid Agency
for reference;

e.

during the time span between contract awarding and the
delivery of the goods under procurement, ELC-Electroconsult will carry out the necessary shop inspections and
quality controls to ensure that the equipment
and
materials fully satisfy the technical specifications. The
Consultant will also control the adequateness of packing
and delivering procedures to Indonesia of all goods as
well as of all documents issued by the suppliers for the
Italian Customs inspection.
Upon the
satisfactory
completion of the above procedure, the Consultant will
proceed with the payment of the bills issued by the
suppliers, following the terms and procedures established
in the Supply Contract;

f.

upon arrival of the goods in Indonesia, the Resident
Manager of ELC- Electroconsult will proceed to the final
inspection of equipment and materials and will officially
deliver them to the DGWRD.
At the end of the guarantee
period, the Consultant will proceed with the payment of
the final installments to the suppliers.

A4 - 4

Fig. 4.1

:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------LOllSOK ISLAND GROUND WATER DEVELOPKENT PROJECT
! ASSIGNMENT SCHEDULE

:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------:
1st Year

3rd Year

2nd Year

4th Year

"an/11onth

:----------------------------------------------------------------------------------------------.-------------------------------------·--,- ·--,------------------------------:
IL :2 !3 !4 :s :6 :7 :8 !9 :io:11:12:13:14:1s:16:11:1a:19:20:21:22:23:24:25:26:21:2a:29:30:31:32:33:34:35:36:3713B:39:40!41142!43!44!45!46:47!48!Indonesia: Italy : Total
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Project Director
Resident "anager
6eohydrologi st
Contract Engineer
Drilling Engineer
Hydrologist
Irrigation Engineer
"echanical Engineer
Co1puter Expert
Agrono1i st
Soci o-Econo1i st
Unallocated
Supporting Staff