MINISTRY OF SETTLEMENTS AND REGIONAL …

REPUBLIC OF INDONESIA MINISTRY OF SETTLEMENTS AND REGIONAL INFRASTRUCTURE DRECTOMTE GENERAL OF URBAN AND RURAL DEVELOPMENT

URBAN SECTOR DEVELOPMENT REFORM PROGRAM (USDRP) Japanese Grant No. T F 028836 through IBRD

January 2004

Prepared by:

Departemen Pennukirnan dan Prasana Wilayah Dtrrktorat ltnderal Tau Pdotaan dan Pt;, Perdenan ...

LLn P e r e m a n Pembangunan Nasionat CBAPPENAS)

Departernen Dalam Neped RepuMik Indonesil @epdagiii

A I W . -

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Administrator

28034

URBAN SECTOR DEVELOPMENT REFORM PROGRAM (USDRP) Japanese Grant No. T F 026836 through IBRD Safeguard Framework for USDRP

Abbreviations and Acronyms

AC

AMDAL

ANDAL APBD Bapedalda Bupati DAU Dinas DPRD EA EMP

GO1 IUIDP Kabupaten Kelu ra han Kota KIMPRASWIL KMK 3512003

LARAP Musbangkel

Musbangkot

NGO NMC NOL PAP PJM

Rakorbang

RKL / RPL

Appraisal Committee at Central Level to decide on eligibility of proposed ULG subprojects based on the stipulations of KMK 35/2003 (Analisis Mengenai Dampak Lingkungan) General Framework for Envi- ronmental Assessment (typically comprises ANDAL & RKL / RPL) (Analisis Dampak Lingkungan) Comprehensive EA Annual Local Government Budget Environmental Impact Management Agency - Local Level Head of (Kabupaten) District Block Grant from Central Government to Local Governments Line Department within a Local Government Local Council of a Kabupaten or a Kota Environmental Assessment Environmental Management Plan (in accordance to RKL 1 RPL if ANDAL is required) Government of Indonesia Integrated Urban Infrastructure Development Project District Sub-district Level Municipality Ministry of Settlements and Regional Infrastructure Ministerial Degree No 35 of 2003 to regulate On-lending and On-granting Conditions of Donor Loans Land Acquisition and Resettlement Plan (Kelurahan) Sub-district Level Development Dialog -- a forum where interests and aspirations of citizens who live within a kelurahan are discussed and noted: City Level Development Dialog -- interests and aspirations from each kelurahan are discussed further to formulate a city-level development agenda

Non-Governmental Organization National Management Consultant No Objection Letter Potentially Affected People (Program Jangka Menengah) 5-year Development Plan at Local Gov- ernment Level (Rapaf Koordinasi Pembangunan) Development Coordination Meeting - a forum where city-level development agenda is discussed / synchro- nized with the available funds and medium-term development strategy

(Rencana Pengelolaan Lingkungan / Rencana Pemantauan Lingkungan) PJM)

1 HALAMAN i


SK SF SOT UIDF UKL I UPL

ULG USDRP Walikota WB

Environmental Management Plan / Environmental Monitoring Plan as an integrated part of ANDAL (Suraf Kepufusan) ULG Degree, issued by Walikota or Bupafi Stakeholders Forum Safeguard Oversight Team Urban Institutional Development Facility (Upaya Pengelolaan Lingkungan / Upaya Pemanfauan Lingkungan) En- vironmental Management Proposal I Environmental Monitoring Proposal, or simplified EMP, for subprojects that do not require ANDAL Urban Local Development Urban Sector Development Reform Program Mayor of a (Kota) Municipality World Bank

1 HALAMAN i i

URBAN SECTOR DEVELOPMENT REFORM PROGRAM (USDRP) Japanese Grant No T F 026836 through IBRD Safeguard Framework for USDRP

Table of Content

1 . Introduction: Nature of the USDRP Program and Subprojects ................ 1

2 . USDRP Project Cycle: An Overview ........................................................... 2

3 . Environmental Framework ........................................................................... 4 3.1, Basic Principles ................................................................................. 4 3.2. Subproject Category ......................................................................... 5

Content of EA Report ........................................................................ 6 3.3. 3.4. EA and EMP Procedures and Public Consultation ......................... 8

4 . Land Acquisition and Resettlement Framework ...................................... 11 4.1, Basic Principles ............................................................................... 11 4.2. Thresholds ....................................................................................... 12 4.3. Procedures of Land Acquisition and Public Consultation ........... 13

5 . Function and Responsibilities of Institutions Involved ........................... 16 5.1, 5.2.

Involved Agencies at Local Level ................................................... 16 Involved Agencies at National Level .............................................. 17

5.3. Institutional Arrangement ............................................................... 18

6 . Legal Consideration .................................................................................... 19

Table of Annex

Annex 1 : Project Type Map Annex 2: USDRP Safeguard Organization Annex 3: Type of Sector and Project Scale that require EA or EMP

1 HALAMAN iii


1. Introduction: Nature of the USDRP Program and Subprojects The objective of the Urban Sector Development Reform Program (USDRP, or “the project”) is to support local governments in their efforts to alleviate poverty, to stimulate the development of localhegional economy, and to improve the delivery of sustainable and demand-driven urban services. The ultimate goal of these efforts is to improve the living quality of the urban population. To be able to achieve these objectives the project will ensure that participating urban local governments (U LGs):

select prioritized investments for infrastructure development that are based on an agreed long-term development strategy and medium term development plan (PJM); engage in governance reforms that foster participation, transpar- ency, and accountability as well as internal management reforms focusing on procurement of goods and services and financial management; develop institutional and regulatory capacity for better delivery of urban services; determine and implements priority investments in both a participatory and accountable way.

USDRP is responding to the needs under a decentralized and democratic environment of the civil society. USDRP is building on the approach used to be taken by other urban development projects, such as the prominent IUIDP (Integrated Urban Infrastructure Development Program), where investment in infrastructure was a primary objective. However, USDRP views urban development in a more comprehensive way, therefore investment in infrastructure is only one part of a broad-based development approach. Other strategic elements include the establishment and implementation of comprehensive governance reforms and improvement of the delivery capacity for public service of participating ULGs. The USDRP is encouraging the participating ULG to identify subprojects through an “open menu”’ approach. To satisfy the entire needs for urban development participating ULGs have the opportunity to invest without sector specific limita- tions. The main investment sectors concerned comprise: public works, transpor- tation, education and health. The process of identification and selection of subprojects needs to be conducted in a participatory way, involving local government, council, and the stakeholders forum (SF) *, Consistent to this approach USDRP does not determine a ceiling amount for a proposed subproject. However, the proposed subprojects should be socially, en- vironmentally, and economically viable and in line with an approved medium term development plan (PJM). The total amount of money borrowed by the participating ULGs depends upon their financial capacities.

A.

B.

C.

D.

’ Annex 1 is an indicative list of possible subprojects that are eligible for USDRP finance

See section 2.2 C Institutional Arrangement

1 HALAMAN 1

URBAN SECTOR DEVELOPMENT REFORM PROGRAM (USDRP) Japanese Grant NO. T F 026836 through IBRD Safeguard Framework for USDRP

The object of this USDRP safeguard framework is to provide for all parties involved a common platform in analyzing, planning, implementing, operating and monitoring potential subprojects in line with Bank requirements and the prevailing Indonesian laws on environmental impacts and land acquisition. The safeguard framework should help participating ULGs ensuring a systematic evaluation of subprojects against environmental and social risks; to reduce and manage adverse risks; to promote environmental and social benefits; and to ensure full disclosure and meaningful consultation with affected people. USDRP related investment will only be carried out in urbanized area and will not enter into protected areas, or critical natural habitats, to avoid the application of safeguards for indigenous people. Therefore, USDRP framework consist of two main parts only: Chapter 3 contains the guidance for required environmental assessment; and Chapter 4 contains the guidance for land acquisition and resettlement plan (LARAP). Hence, all submitted subproject proposals shall meet those requirements set forth hereinafter. This safeguard framework is part of the loan negotiation documents and should, therefore, have been agreed by all participating ULGs prior to loan negotiations. In the event that selected investment projects were identified before the negotiation, the negotiation documents should include the necessary safeguard simple plan (environment, and/or land acquisition action plan). Serious violation of requirements will intercept the program for those investment projects that do not conform to this framework.

2. USDRP Project Cycle: An Overview The following overview is a generic, and in a way idealistic, illustration of required sub-project development steps and their interaction within three mainstream activities, namely: (i) routing budget planning approach of Indonesian ULGs, (ii) technical stages required in sub-project development, and (iii) safeguard measures and activities. Participating USDRP ULGs are requested to consider the staging and elements of this overview as a minimum requirement for subproject preparation.

The approach applies for single, as well as multiyear investment projects. The significance is that the concerned ULG needs to allocate adequate counterpart budgets for each fiscal year individually, even though prior endorsement was given by the local government assembly for the construction of a multi-year subproject. To secure the allocation of local counterpart funds it is required for the ULG to enter into a MOU with the local council (DPRD).

With regard to budget allocation for safeguard requirements, the following should be noted that budgets for the preparation of EA and EMP and/or LARAP should be allocated simultaneously with the budget for project planning and design, either through the local budget (APBD) or the USDRP specific UIDF, which is providing grants for project preparation. These budgets are typically allocated one year prior to investment. Budgets for monitoring and implementation of the manage-

1 HALAMAN 2


ment plan should be allocated in the local budget during the implementation stage.

Table 1: USDRP Project Planning Cycle

Months ' ULG Budget Planning Process

Safeguard Issues Subproject

Development Stages Environmental Aspects *)

Land Acquisition and Social Aspects

EA Committee is established at each government level (ULG, Province, Central) prior to commence- ment of USDRP activities Initial environmental impacts screening of subproject proposals may be conducted by the Proponent, EA Committee, or Bapedalda, Safeguards Oversight Team (SOT) is established at each ULG level

February Dinas prepares their budget proposals

ULG establishes USDRP project implementation units (PIU)

March Musbangkel Proponent (Dinas) syn- chronizes PJM and their subproject proposals - the output is a list of priority

List of SUbprOjeCtS priority has been developed

SUbprOjeCtS that will be financed through USDRP, or other sources, have been determined Proponent conducts feasibility study (FS)

Submit FS, request subproject approval and Subproject finance to Appraisal Committee (AC)

....................................................................... ULG conducts Ra- korbang to discuss, formulate, and syn- chronize proposed subprojects with PJM and to estimate budget availability .................................................

Proponent starts preparing safeguard study: (1) TOR for EA and submits it to relevant EA Commit- tee**) and the Bank, and (2) LARAP (if required) and starts consultation with the PAP (if required)

EA Committee and the Bank approve TOR for EA and/or the Bank approves TOR for LARAP

Proponent prepares draft EA & EMP

Proponent prepares draft LARAP

October Information on DAU (central government grant to local government)

Budget approval

ULG mobilizes consultants to prepare DED & :ender documents

Proponent finalizes consultation with the PAP

Final EA and EMP are approved by EA Commit- tee and the Bank

Nov./ Head of ULG issues decree (SK) and asks for approval from the Bank

Dec

'repare USDRP project iudgets

Implement LARAP and compensate PAP

render out and imple- nent works

Proponent implements EMP - manage and monitor environmental issue. Safeguard Team (SOT) over- sees the implementation of EMP and conducts environmental monitoring

*) Limited to EA and EMP

**) Depending on the type of environmental impacts approval are required from local, provincial or national level

1 HALAMAN 3

URBAN SECTOR DEVELOPMENT REFORM PROGRAM (USDRP) Japanese Grant No T F 026836 through IBRD

Safeguard Framework for USDRP

For harmonization the terms related to the Bank's safeguards and the Indonesian requirements, with regard to environmental issues, the following illustration is given:

HARMONIZING TERMS USED IN THE BANK'S OPERATIONAL POLICIES AND THE INDONESIAN REGULATIONS

ENVIRONMENTAL IMPACT

InaanesNan reg^ ai ons I UKL / UPL

3. Environmental Framework

3.1. Basic Principles

Principles of the Environmental Assessment (EA) and Environmental Manage- ment Plan (EMP) are outlined below. Consequently, any proposed ULG subproject conforms to, and ensures, the recognition of these principles.

A.

6.

C.

D.

ENEMP should be viewed as a quality enhancement tool. As such, it is recommended that the ENEMP forms an integrated part together with technical, economic, social, institutional, and financial analysis of any proposed subproject. USDRP will not support any investment that will create significant adverse and irreversible environmental impacts beyond the capacity of the concerned ULGs to manage. As far as possible, subprojects should avoid, or minimize, negative impacts on the environment. Design alternatives, including non- project alternative, should be studied thoroughly before any subproject is submitted. Accordingly, subprojects should be designed to maximize positive impacts. Subprojects that may cause negative impacts to the environment, and those impacts could not be mitigated through design and construction practices, should be accompanied by a comprehensive EA

1 HAMMAN 4

URBAN SECTOR DEVELOPMENT REFORM PROGRAM (USDRP) Japanese Grant No 5 F 026836 through IBRD


and EMP. There will be no subprojects under USDRP that affect any critical natural habitat, indigenous people, protected areas, or the forestry sector. Additionally, the project will not finance components andlor items that are listed in the following table:

E.

Table 2: USDRP Negative List

No. I Components andlor Substances that will not be financed by USDRP 1. 2. 3.

4. 5. 6.

Construction of Dams Purchase of Pesticides Purchase of Herbicides Purchase of Asbestos, including for roof Subprojects and/or substances that produce hazardous waste3 Subprojects and/or substances that cause ozone depletion

F. Environmental studies and mitigation plans may be produced in the form of: (i) comprehensive EA (ANDAL) in combination with EMP (Environmental Management Plan), or (ii) simplified EMP only, depending on impact category of the concerned subproject (see below list of Categories). The selection of the environmental category for each subproject is determined through the application of criteria set- forth in this framework. For practical reasons it is suggested that first-year investment subprojects that are proposed by any participating ULGs should not trigger the elaboration of a comprehensive EA. Such subprojects may be included in the second year of USDRP implementation] or thereafter.

G.

3.2. Subproject Category A. This environmental safeguard applies during all stages of develop-

ment, i.e.: subproject proposal, planning, implementation, and operation. Each subproject will be scrutinized against screening criteria set forth in the National regulation and operational policies of the Bank. According to Operational Policies 4.01 of the Bank, any USDRP subproject could be categorized into one of the following three categories. Equivalent categorization based on National regu-

3 Hazardous waste is the residue of works and/or activities which contains substances that, because of its number and/or concentration and/or characteristics, directly and/or indirectly, may generate pollution and/or destroy / contaminate the environment, health, and/or sustainability of human-being and other creatures. For details see: Government Regulation (PP) 18/1999 concerning “Management of Hazardous Waste”, Article 1 (2). Exception: hospital may be allowed to be financed with a condition that its wastes will be treated first before being dumped.

I HALAMAN 5

URBAN SECTOR DEVELOPMENT REFORM PROGPAM (USDRP) Japanese Grant No. T F 026836 through IBRD

Bank


GO1 Category

Comprehensive EA and EMP

A Comprehensive EA (ANDAL) and EMP (RKL/RPL) *)

B Simplified EA, and EMP or EMP only *)

C

Simplified EMP (UKUUPL)

lation is also shown in the table.

Table 3: Category of Subprojects

No EA required

Impacts

Subprojects are characterized creating significant adverse environment impacts, with regard to sensitivity, diversity, irre- versibility, and/or unprecedented impacts.

No EA required.

Subprojects are characterized being small in volume and size, implying reversible environmental impacts.

Subprojects do not comprise construction works, and do not cause air, soil and water contamination.

*) see Annex 3, attached: Decree of the State Minister of the Environment No. 17/2001 concerning Types of Activities which should be accompanied by EA; and decree of the Minister of Settlement and Regional Infra- structure no. 17/KPTS/M/2003 concerning activities in the field of Settlement and Regional Infrastructure which should be accompanied by an EMP

B. Law no. 23/1997 concerning Environmental Management, Article 15(1) states that any plan of activity or work that possibly creates large and significant environmental impacts must be accompanied by an EA. Government Regulation (Peraturan Pemerintah, or PP) no. 27/1999 concerning EA, Article 5( 1 ) furthermore elaborates criteria of large and significant impacts that include: (i) influence a large number of people, area, and environmental components; (ii) impacts are intense, occur during a long period of time, they are cumulative, and irreversible.

3.3. Content of EA Report The following is a listing of items that should be included in any subproject analysis and report. More detailed outline on EA and EMP preparation is described in the Project Implementation Plan (PIP) document.

Contents of a comprehensive EA report should include, as a minimum requirement, the following sections:

A.

1 HALAMAN 6


Executive summary Policy, legal, institutional, and administrative framework Baseline data with regard to the municipality, project environment and subproject Detailed technical subproject description Benefit analysis and technical risk assessment during construction and operation Environmental and social impact assessment, including indirect and cumulative impacts Analysis of alternatives, including non-project alternatives Process of public consultations and summary of achieved results Appendices of supporting subproject documents

The extent, depth, and type of analysis depend on the nature, scale, and potential environmental impact of the proposed subproject. The proponent evaluates and the EA committee approves a subproject’s potential environmental risks and impacts, examines subproject alternatives, identifies ways of improving subproject selection, location, planning, design, and implementation by preventing, minimizing, mitigating, or compensating for adverse environmental impacts and enhancing positive impacts.

B. Contents of an EMP report should include, as a minimum requirement, the following sections:

(1) Executive summary (2) Environmental Management Plan

0 Environmental Impacts and their Sources: environmental components that may be affected, sources of impacts, and indicators of impacts

Management plan and mitigating measures during pre- construction, construction and operation periods: actions, locations and periods of mitigation.

(3) Institutional arrangement: responsible agencies, and reporting relationship

Budget and schedule (3) Environmental Monitoring Plan

0 Monitoring plan during pre-construction, construction and operation periods: action, time and methods, and location

0 Institutional arrangement: responsible agencies, and reporting relationship Budget and schedule

EMP should describe a set of mitigation, monitoring, and institutional measures that need to be exercised during implementation and operation of the subproject to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels. Most important is to allo-

1 HALAMAN 7

Safeguard Framework for USDRP URBAN SECTOR DEVELOPMENT REFORM PROGRAM (USDRP) Japanese Grant No T F 026836 through IBRD

cate clear and adequate interfaces of responsibilities to the institutions and stakeholders i nvo I ved .

3.4. Proponents need to work closely together with the potentially affected people (PAP) and need to coordinate with the EA committee for following essential steps:

decision to determine appropriate subproject category and selection of adequate safeguard requirements (as illustrated in Table 3 above), preparation and approval of TOR for the preparation of adequate safeguards documents, and preparation and approval of safeguard documents

EA and EMP Procedures and Public Consultation

(i)

(ii)

(iii) The following figure is illustrating the procedures involved to implement environmental assessments and management documents. Figure 1 should be read as an integrated part of the subproject cycle, as illustrated in Section 2 of this framework.

1 HALAMAN 8

URBAN SECTOR DEVELOPMENT REFORM PROGRAM (USDRP) Japanese Grant NO T F 026836 through IBRD Safeguard Framework for USDRP

Figure I: Procedures of AMDAL

* The Bank also has to approve these TOR and ENEMP

A. During the preparation of an EA and EMP the proponent has to ensure to conduct minimum procedural requirements, comprising the following elements: (1) Approval: Relevant EA Committee is the authorized agency

responsible to review and assess TOR and/or draft ENEMP. Proceeding approval the proponent should conduct consultations with the Stakeholders Forum and the PAP. These con-

1 HALAMAN 9

,RaA\ SEC-Oil DEVE-OPMEhT ClEFCRIl PROGFUV IJSDRP: ,apanese Grant ko T 026836 tnro.gh BRD Safeguard Framework for USDRP

sultations are mandatory, and results of the consultations should be recorded as an integrated part of the EA report.

(2) Reportinq: Administratively, the EA Committee reports their activities to their respective superior authorities, i.e Mayor or Bupati (for Kota/Kabupaten EA Committee), or Governor (for Provincial EA Committee). The proponent should report the implementation of EMP and environmental monitoring to relevant agencies as noted in Figure 1 above

(3) Monitorinq: The subproject proponent is the principal agency responsible to conduct routine environmental monitor. How- ever, Bapedalda is the government agency responsible to monitor environmental quality within their jurisdiction. In that respect Bapedalda may be asked to supervise monitoring activities of the proponent to ensure their conformity with prevailing standards and regulations.

B. Public Consultations during EA preparation and implementation

To avoid bias during the decision making process because of a possible conflict of interests among the stakeholders within local governments - (they are involved as proponent as well as permanent members and secretariat of the EA Committee) - consultation with the Stakeholder Forum and PAPS are mandatory steps. Consequently, comments made during public consultation with regard to social and/or environmental impacts of the proposed subproject should be adequately addressed and answered and accommodated in the TOR of EA and EMP. Government Regulation (PP) No. 27/1999 concerning EA article 33 (3) states that within 30 days after the announcement of the proposed subproject, concerned parties, including PAP, local NGOs, and other concerned stakeholders may give their comments, suggestions, and complaints to the proponent in charge of subproject development. During the EA process the proponent informs the Stakeholders Forum, and other local NGOs that are not represented in the Stakeholders Forum, and the PAP, discusses the subproject’s environmental and social aspects and impacts and takes their views into account. The proponent consults these groups at least twice: (i) shortly after environmental screening is finalized and prior to the preparation of the terms of reference (TOR) for the EA is finalized; and (ii) after the draft EA and EMP reports are prepared and ready for evaluation (by the EA Committee). In addition, the proponent consults with these groups through- out subproject implementation, as necessary, to readdress EA- related issues and subproject impacts.

should take the following aspects into consideration:

(1)

(2)

(3)

1 HALAMAN 10


(4) For meaningful consultations among the proponent, the Stake- holders Forum, local NGOs, and PAP, the proponent provides all relevant material in a timely manner prior to the consultation process and in a form and language that are understandable and accessible to the groups and people that will be consulted. The material includes a summary of the proposed subproject’s objectives, detailed technical description, and comprehensive “illustration of potential impacts. For consultations after the draft EA and EMP reports are prepared, the proponent provides a summary of the EA and EMP, including conclusions and recommendations. In addition, the proponent should also disclose the draft EA and EMP reports available to the public for an unlimited period of time, accessible to the Stakeholder Forum, and local NGOs. With regard to environmental and social issues there should be transparent public complaint procedures in place. Public complaints should be resolved prior to the tender phase of the concerned subproject. Complaints filed at any time prior construction, during construction and/or operation of the subproject need to be solved amicably between the proponent and the complaining party. Complaints that cannot be solved by the proponent within a period of 30 calendar days should be forwarded to the Safeguard Oversight Team for mediation. In the event that complaints that are filed prior to construction cannot be solved amicably within one year, the construction of the subproject should be altered, or adjusted, or postponed.

4. 4.1. Basic Principles Principles of land acquisition and resettlement for USDRP related subprojects are as follows:

Subprojects should avoid, or minimize land acquisition that requires and impacts on resettlement of inhabitants. Impacts may not be limited to land, shelter, and cost of moving from the current location to an alternative location, but also include loss of assets, access to assets and sources of income or means of livelihood. Subprojects need to explore viable alternative to minimize such impacts. Subprojects should, transparently, include the cost of land acquisition that is agreeable by all concerned stakeholders, especially the PAP4. The PAP should have an opportunity to have a separate discussion and agree with the terms of compensation and/or resettle-

Land Acquisition and Resettlement Framework

A.

B.

See 3.2 C. Institutional Arrangement, below

1 HALAMAN 11


ment with the proponent. Land acquisition should not worsen the living conditions of the PAP. The PAP has the rights to get real replacement cost compensation such as alternative land and/or cash compensation equal to the real market price of land and assets (such as building, trees, and other productive assets). Other related costs such as the cost of moving, land transfer, rearrangement of land certificate and taxes should be borne by the proponent. The compensation for renter, sharecropping or agricultural laborer that have to move their activities to other places are at least equal to: (i) three months rent, (ii) the value of the harvest for that season of those particular land and crops (or give the opportunity for them to harvest first), or (iii) a total income of the labor in that season. The PAP should agree with the compensation or, if acceptable, vol- untarily contribute parts of their land to the subproject. Meetings among the PAP, facilitated by the Stakeholders Forum, should be arranged to make sure that the PAP could have their independent decision. Voluntary contribution can only be considered if the PAP has direct benefit far exceeding the cost of that land (proof by mutual calcula- tion signed by both sides), only taking equal or less than 10 % of their plot area and a letter of approval signed by the PAP after the PAP have a separate discussion as described in point B above and have a clear explanation of their rights. The Safeguard Oversight Team has to make sure that there is no pressure to the PAP to contribute their land. The agreement should be documented in a legal document. Subprojects should already have the alignment of land needed, the number of PAP, general information of the PAP’ income and employment, and the existing land market price, proposed by the proponent and supported by NJOP (land tax form), before land acquisition (with, or without resettlement) is commenced. The preparation of land acquisition action plan (LARAP) and its implementation are the responsibility of the proponent (Dinas) who proposes the subproject, monitored and overseen by the Safeguard Oversight Team.

C.

D.

E.

F.

G.

H.

4.2. Thresholds A. Proposals that cause impacts to 40 households (200 persons) or

more should have a land acquisition and resettlement action plan (LARAP). LARAP consists of: (I) An identification of social and economic conditions of those

PAP ; (2) A comprehensive plan on land acquisition and resettlement, its

1 HALAMAN 12

URBAN SECTOR DEVELOPMENT REFORM PROGRAM (USDRP) Safeguard Framework for USDRP Japanese Grant No T F 026836 through IBRD

schedule, including schedule of consultations, negotiations, and consultations, definition of agencies responsible for implementation, budget, and monitoring of the proceeds;

(3) Agreed compensation packages; (4) Complaint and grievance mechanisms

B. The identification of social and economic conditions needs to be

List of persons or households potentially affected; Types, amount, or value (in money terms) of assets affected; Socio-econom ic conditions : em ploy men t , income, etc; Perception of, and expectation to, the project.

formalized in a comprehensive study that consists of: (1) (2) (3) (4)

C. Proposals that cause impacts to less than 40 households should have the following assessment made: (1) A simple format that shows: the compensation agreement, the

resettlement plan, the investment proposal, lots of land involved, name of owners, and estimated costs for land acquisition and resettlement; Transparent and participative negotiation process and agreement; The PAP should aware that they have the right to be compen- sated and/or having other kinds of assistance; and Agreed subprojects and compensation packages.

(2)

(3)

(4)

4.3. Procedures of Land Acquisition and Public Consultation

A. In the event that resettlement is unavoidable the proponent has to implement an approval and consultation process that involves various stakeholders, including the PAP, the Stakeholder Forum, the Safeguard Oversight Team, the Head of ULG and the Bank. The following chart is outlining the flow of process as minimum requirements that needs to be followed by the proponent.

1 HALAMAN 13


Figure 2: Procedures in the Preparation of Land Acquisition and Resettlement Action Plan

may be facilitated by the Stakeholders Forum the Central PMU

Proponent to implement

B. Public disclosure procedures for land acquisition and resettlement are as follows:

(I) Subprojects should be socialized to, and consulted with, concerned parties, particularly the PAP. Socialization and consultation should be conducted at the time of: preliminary study, social-economic study, the drafting of the decree and the issu-

1 HALAMAN 14


ance of the decree. Socialization and consultation are the responsibility of the proponent (Dinas) who proposes the subprojects (could be assisted by its consultants). It is also necessary that the PAP should have an opportunity to discuss such proposal separately, and to agree to the compensation and resettlement plan; Socialization and consultation should include: detailed information concerning the subproject’s size, volume, implementation plan, benefits and risks, and possible negative impacts. The PAP should be able to: give suggestions, ask questions, or ex- press concern regarding the investment plan. Furthermore, the PAP should also be able to give inputs to LARAP, e.g. concerning compensation packages, resettlement location, and other benefits. Socialization and consultation may be conducted in the form of focus group discussion, which involve, among other members of the community, representative of women. To ensure that perception and aspiration of the PAP are accommodated, minutes of the discussion, signed by representatives of each parties, should be attached to the LARAP; This framework should be discussed openly and agreed by the Stakeholder Forum. This framework should also be disseminated openly to the participating ULGs in easy to understand format, such as leaflet and poster. Leaflets and posters will be distributed to the potentially affected communities and available media; The PAP should have full understanding about their right according to this framework and have sufficient time and oppor- tunities to discuss among themselves to be able to come out with their own independent decision; Each decision and safeguard plan should be disseminated widely, especially among the PAP. The Safeguard Oversight Team should monitor/oversee the dissemination of this information.

C. With regard to resettlement issues there should be transparent public complaint procedures in place. Public complaints should be resolved prior to the tender phase of the concerned subproject. Com- plaints that cannot be solved by the proponent within a period of 30 calendar days should be forwarded to the Safeguard Oversight Team for mediation. In the event that complaints that are filed prior to construction cannot be solved amicably within one year, the construction of the subproject should be altered, or adjusted, or postponed. LARAP should be endorsed through a Mayor’s or Bupafi’s decree D. (SW.

I HALAMAN 15


5. 5.1.

Function and Responsibilities of Institutions Involved Involved Agencies at Local Level

Agencies at local level are involved in various aspects and stages of the implementation of safeguard framework, as follows: A. Proponent of subproiect. The proponent of a subproject is partici-

pating ULG, through their relevant line department (Dinas). The proponent is responsible to prepare TOR, EA and EMP, or simplified EMP (for Environmental Assessment); and to conduct socio- economic survey, and to prepare TOR and land acquisition and resettlement action plan (for Land Acquisition and Resettlement), as well as to supervise their implementations;

B. Relevant EA Committee. EA Committee is the authorized agency responsible to review and approve TOR, EA and EMP, or simplified EMP. According to Government Regulation (PP) No. 27/1999 concerning EA, Article 8, relevant EA Committee for USDRP subprojects will most likely be the municipaVdistrict EA Committee (if existing), or Provincial EA Committee’. DLH - Dinas Lingkungan Hidup (Environmental Agency of the ULG) is a permanent member of the EA Committee, and, typically, their office is acting as the secretariat of the EA Committee. The Potentially Affected People (PAP). The PAP means the indi- viduals, families, and/or community who own, rent, or occupy land, buildings and or other assets attached to the land subject of acquisition; and, on the account of the execution of said land acquisition plan, would have their standard of living, land related assets, access to productive assets, business and employment opportunity ad- versely affected. Bapedalda - Badan Pengendalian Dampak Lingkungan Daerah - (Environmental Impact Management Agency, at ULG level) is the authorized agency responsible to conduct government tasks in the field of environmental impact management, which includes, among other duties, to prevent and to mitigate environmental impacts. With regard to USDRP, the role of Bapedalda is to supervise the propo-

C.

D.

According to prevailing regulation, EA Committees, which are responsible to review EA documents, are either: Central EA Committee, or Provincial EA Committee, or ULG EA Committee. Those Committees are not hierarchical; each has a separate jurisdiction depending upon several factors. Article ll (1) of Government Regulation (PP) No. 27/1999 concerning AMDAL states: Central EA Committee is responsible to review EA which has elements of national strategic and/or is related to state defense, with impacts that covers more than 1 Province, located in conflict areas with (an)other state/s, located in the sea, and/or its location also covers jurisdiction of (an)other state/s. Article 11 (2) states that local (Provincial or Municipality/District) EA Committee is responsible to review EA which has elements not included in the above criteria.

5

1 HALAMAN 16


nent in implementing EA and EMP, and to monitor the quality of the environment in general. Bapedalda is a permanent member of local EA Committee. Safequard Oversiqht Team (SOT). SOT is a team established at ULG level prior to the preparatory stage of the subprojects to supervise and oversee compliance of the framework and its application to existing regulations and environment/social situation. SOT consti- tutes representatives of relevant ULG Dinas or units at the local government, and NGOs whose activities focusing on environmental, and/or land, andlor human rights issues. The SOT may share membership with the SF. The SOT is coordinated by the Head of Bappeda (ULG Development Planning Board). The establishment of the SOT shall be endorsed through a Mayor’slBupafi’s decree.

F. Stakeholders Forum (SF). SF is an informal representations of elements of the civil society, such as local NGOs, local university lecturers, opinion leaders, traditional leaders, religious leaders, as well as members of local council and local government officials - all in their personal capacities, committed to discuss constructively and contribute to local urban development issues and to suggest ways to improve them. USDRP promotes such an approach as means to in- crease public participation. SF involves in the review of TOR, EA and EMP (Environmental Assessment) as a consulting body, and in facilitating consultation between the PAP and the proponent (Land Acquisition and Resettlement). If necessary, proponent of the subproject should also consult the Forum during implementation of EMP.

E.

5.2. Various agencies are involved at the National level, especially those who will be directly involved in USDRP implementation and of various aspects and stages of the application of the safeguard framework. They are:

A. Executing Agency (ExA). For USDRP the Ministry of Settlements and Regional Infrastructure is the ExA on behalf of the Government of Indonesia (GOI). National Manaqement Consultant (NMC). On behalf of EM, NMC is responsible to manage overall day to day operation of the project. As such NMC is to report to the ExA, at least on a monthly basis. The World Bank (WB). WB is the creditor who finances a part or entire parts of the subprojects, and consequently it has the right to review and to approve TOR, EA, and EMP; and TOR and SK for LARAP. The Bank will only review simplified EMP randomly.

Involved Agencies at National Level

B.

C.

1 HALAMAN 17

URBAN SECTOR DEVELOPMENT REFORM PROGRAM (USDRP) Japanese Grant No. T F 026836 through IBRD

1.


Plan preparation: TOR and LARAP

5.3. Institution a1 Arrangement With regard above definition of roles, the following two tables illustrate the institutional framework to prepare and approve EA and LARAP, and reporting relationship among the involved agencies.

Table 4: Institutional Arrangements for EA Preparation

No.

1.

2.

EA Stage

Preparation

TOR, draft EA and EMP

Simplified EMP

Implementation:

Supervision of EMP; and

Conduct environmental monitoring

Conducted by

Proponent of subproject, i.e. a Dinas within the local government

Proponent of subproject, i.e. a Dinas within the local government

Proponent of subproject (may be supervised by Bapedalda).

Consult with

Stakeholders Forum (SF) and PAP

SF and PAP (if necessary)

Approve (preparation stage) or Overseen (implementation

stage)

Relevant EA Committee, and the Bank

Relevant EA Committee, and reviewed randomly by the Bank

Safeguard Oversight Team (SOT)

Report to

NMC, cc ExA and the Bank

NMC, cc ExA and the Bank

ExA cq NMC

Bapedalda 1)

Governor

The Bank

1) Bapedalda subsequently reports its monitoring and evaluation to State Minister of the Environment at least twice a year, CC to licensing agency and the Governor.

Table 5: Institutional Arrangements for Land Acquisition Plan Preparation

2. i Implementation

Proponent of subprojects (i.e.Dinas) - may be assisted by consultant

Ditto

The PAP, facilitated by the Stakeholders Forum (SF)

The PAP, and the Bank (for the TOR and the SK). LARAP is to be endorsed by the mayor1Bupati' decree

PAP

3. 1 Monitoring I SOT 1 PAP

Safeguard Oversight Team (SOT)

NMC, cc the WB and ExA

MayorIBupati, cc the WB and NMC

Ditto

A. To ensure that responsible agencies do have sufficient capacity to carry out their duties efficiently it is suggested to analyze present

I HALAMAN 18


management capacities and to conduct trainings to improve delivery and management capacity of the key agencies involved, namely Safeguard Oversight Team, Bapedalda and the related subproject proponent (Dinas). The World Bank may be asked to provide assistance to the local government (or Dinas) during the preparation of LARAP, but the Bank’s fund could not be used to finance any part of the LARAP implementation. This is true whether the investment plan will be funded entirely, or partly, by the Bank. The Bank’s fund may be used to finance the development of resettlement site, such as the provision of basic infrastructure. LARAP should be endorsed through a Mayor’s or Bupafi’s decree (Surat Keputusan - SK). Such a decree should be pre-approved by the Bank to ensure its conformity with the loan agreement.

B.

C.

6. Legal Consideration A. The ultimate legal basis of EA preparation and implementation, as

well as land acquisition and resettlement, is the effective USDRP loan agreement between GO1 and the Bank. For the Bank content of this agreement is dictated by its operational procedures set forth in its various operational policies. For GO1 policies for EA is stated in law no. 23/1997, government regulation 2711 999, and various de- crees of the State Minister of the Environmental and other Technical Ministries, as illustrated at the Annex 3. Land acquisition process should also be in accordance with the Presidential Decree (Kepu- tusan President, or Keppres) No. 55 / 1993 concerning land acquisition for developments that are of public interests. Preparation of TOR, EA and EMP should be reviewed and endorsed by an authorized body (relevant EA Committee for EA, and the Bank). For land acquisition, its TOR, and supporting decree (SK) also need approval (NOL) from the Bank. Together with reporting mechanisms of this safeguard as mentioned in the institutional arrangements, this approval mechanism aimed at ensuring that the preparation and implementation of EAIEMP and LARAP follow cer- tain procedures and standards.

B.

1 HALAMAN 19

URBAN SECTOR DEVELOPMENT REFORM PROGRAM (USDRP) Japanese Grant No T F 026836 through IBRD

Types of Cost Recovery Projects Definition: a project that generates direct financial revenues in the form of user charges (tariffs or levies)


Types of Non-cost Recovery Projects Definition: a project that is not a cost recovery project

Hospitals (other than Puskesmas) Pregnancy clinics (Rumah Bersalin) Market development Solid waste collection (excl. TPAs) Com posting facilities Transport terminals Public transport services Parking lots Slaughter houses Human waste collection (excl. jamban umum) Water supply systems Toll roads and toll bridges Housing Public cemeteries Cold storage facilities Storage facilities for agricultural products Radio and TV infrastructure Touristic objects Recreation facilities Sports facilities Convention centers Ferries Port facilities E-government facilities Kawasan Siap Bangan (Kasiba) Notes:

Puskesmas Kampung improvement Elementary and secondary schools Tempat Pembuangan Akhir (TPA) Drainage and flood control Traffic management infrastructure Land consolidation Environmental protection Elderly houses (panti asuhan) Community sanitation (jamban umum) Erosion protection Roads and bridges (not tolled) Micro-irrigation Youth centers Libraries Musea Social rehabilitation centers Parks Incineration facilities

- If a project is in any of the above lists, it will not be automatically approved - Cost recovery projects which are not financially feasible do not qualify for grant funding - Cost recovery projects with an element of subsidy are to be classified as 'cost recovery'

- Pilot projects in the list of cost recovery projects are to be classified as 'cost recovery' - If a local government deliberately attempts to restructure a project in such a way that it avoids

being classified as 'cost recovery', it will be excluded from the appraisal process for a period of maximally three years If a proposed project is not in the above lists, the Tim Penilai will classify the project based on the definition of a cost recovery project

.

Source: Consultant

{ HALAMAN 20


Annex 2: USDRP Safeguard Organization

I

............

/-

-I I I m m

...........................................................................

\

I I I I 4 4 I + ........................................................................................... I ~ ~ ~ u ~ n ~ ~

r

!! Q *

Irsrzss* .i ...........................................................................................

...

I

I r 9 2

1 * u q l a m m t ~

@4P ......................................................................................................................................................................................................

1 HALAMAN 21


Annex 3: Type of Sector and Project Scale that require EA or EMP The need to prepare EA and or EMP is triggered in accordance to the following prevailing Indonesian regulations: 1. Decree of the State Minister of the Environment No. 17/2001, dated 22 May 2001;

and 2. Decree of the Minister of Settlements and Regional Infrastructure No.

17/KPTS/2003, dated 3 February 2003

a. Development of distribution network (serving area)

b. Development of piped transmission network (length)

c. Water intake from surface spring water, river, lake, or other sources (intake debit)

d. Development of water treatment plant (debit)

e. Ground water intake

Solid Waste a. Final disposal with control landfill systemlsanitary

landfill (non-hazardous waste) - Area coverage - Total capacity

b. Final disposal in tides area - Landfill coverage - Total capacity

- Operational capacity

d. Final disposal with open dumping system

e. Development of Incinerator

f.

c. Development of transfer station

Building for composting and recycling

b. Waste water treatment plant

SCALE EA^

2 500Ha

2 10km

2 250 I/sec

1 50 Ilsec

10 Ha 2 10.000 ton

5 Ha 15.000 ton

2 1.000 ton/day

All size

2 2 Ha

r 3 H a

EMP7

100 - < 500 Ha

2 - < 1 0 k m

50 - c 250 llsec

> 50 Ilsec

> 5 - < 50 Ilsec

< 10 Ha 10.000 ton

< 5 Ha 5.000 ton

< 1 .OOO tonlday

All size

4 tonlday > 500 m2

2 Ha

c 3 Ha

’ See Decree of the State Minister of the Environment No. 17/2001, dated 22 May 2001 on Types of Activities that Need to be Accompanied by Comprehensive EA.

See Decree of the Minister of settlements and Regional Infrastructure No. 17/KPTS/2003, dated 3 February 2003 on Types of Activities that Need to be Accompanied by (simple) EA, and/or EMP.

1 HALAMAN 22

URBAN SECTOR DEVELOPMENT REFORM PROGRAM (USDRP) Japanese Grant NO. T F 026836 through IBRD Safeguard Framework for USDRP

Drainage a. Development of drainage in large city / metropolitan

area - Primary drainage (length) - Secondary and tertiary drainage (length)

b. Development of drainage in medium-sized city - Primary drainage (length) - Secondary and tertiary drainage (length)

I c. Development of drainage in small-sized city

River Normalization a. Metropolitan city

- Length - or volume of dredging

- Length - or volume of dredging

c. Rural area - Length - or volume of dredging

b. Medium-sized city

d. Waterway diversion

Flood Canal a. Metropolitan city

- Length of canal - or area coverage for land acquisition

- Length of canal

- Length of canal

b. Medium-sized city

c. Rural area

Road Development and/or road betterment with broadening of road outside Right of Way a. 1 Metropolitan city

- Length - or area coverage

a.2 Large city - Length - or area coverage

SCALE EA^

1500 Ha

5 km

10 km

5 km I 500.000m3

5 km 1 500.000m3

5 km I 500.000 m3

5 km 2 500.000m3

2 5 k m

2 5 k m

5 km 1 5 Ha

lOkm ? 10 Ha

EMP'

c 500 Ha

c 5 km 1 - 5 k m

c 10 km 2 -1Okm

> 5 km

1 - < 5 k m 1 - 5 H a

3 -< :10km

km s/d c 15 km

All size

1 - < 5 k m 2 - 5 H a

3 - c I O k m

5 - 1 5 k m

1 - < 5 k m 2 - < 5 H a

3 - c l O k m 5 - c 10 Ha

1 HALAMAN 23


SECTOR and ACTIVITY I I

a.3 Rural area - inter urban, length

Road betterment with broadening inside Right of Way b.1 Large city / metropolitan b.2 Arterial road/collector (length)

Bridge (New Construction) a. Large city (length) b. Medium-sized city (length)

Construction of Harbor a. Pier with massive construction

- Length - or coverage

b. Break water

c. Supporting infrastructure

d. Single Point Mooring Buoy

Fish Harbor a. Length of pier b. Industrial estate (fishing) c. Depth of water ways in the pier

Hospital

HousinglResidential a. Metropolitan city (coverage) b. Large city (coverage) c. Small to medium-sized city (coverage)

Building Construction (Education, trading, offices, religion place etc) a. Area coverage b. or building coverage

New Construction for Resettlement a. Number of persons removed

b. or area coverage

SCALE EA'

130km

200 m 1 6.000 m2

2 200 m

2 5Ha

2 10.000 DWT

300 m 10 Ha 2 -4 m LWS

Types A or B, or equivalent

25 Ha 50 Ha 2 100 Ha

5 Ha 2 10.000 m2

200 households 2 100 Ha

EMP7

5 - c 30 km

2 10 km

20 m 2 60 m

2 - c 25 Ha 2 - c 50 Ha 2 - < 100 Ha

c IO.OOO m2

50 - 200 households 2 Ha - 100 Ha

1 HALAMAN 24

Documents

MINISTRY OF SETTLEMENTS AND REGIONAL …