The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) Integrated Safeguards Data Sheet Restructuring Stage Restructuring Stage | Date ISDS Prepared/Updated: 12-Apr-2017| Report No: ISDSR16974 Regional Vice President: Victoria Kwakwa Country Director: Rodrigo A. Chaves Senior Global Practice Director: Riccardo Puliti Practice Manager/Manager: Julia M. Fraser Task Team Leader: Peter Johansen The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) I. BASIC INFORMATION 1. BASIC PROJECT DATA Project ID Project Name Upper Cisokan Pumped Storage Hydro-Electrical Power P112158 (1040 MW) Project Task Team Leader(s) Country Peter Johansen Indonesia Approval Date Environmental Category 26-May-2011 Full Assessment (A) Managing Unit Is this a Repeater project? GEE02 PROJECT FINANCING DATA (IN USD MILLION) Total Project Cost Total Bank Financing 800000000.00 800000000.00 Financing Gap 0 Financing Source Amount Counterpart Funding 160000000.00 International Bank for Reconstruction and Development (IBRD) 640000000.00 Total 800,000,000.00 2. PROJECT INFORMATION Current Project Development Objective The development objective is to significantly increase the peaking capacity of the power generation system in Java-Bali in an environmentally and socially sustainable way and strengthen the institutional capacity of the project implementing entity (PLN) in hydro-power planning, development and operation. Proposed New PDO The objective of the Project is to strengthen the institutional capacity of PT Perusahaan Listrik Negara (Persero) for The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) planning and preparation of pumped storage and hydropower projects. 3. PROJECT DESCRIPTION The restructured project will support Feasibility Study and Preparation of Basic Design and Bid Documents for Matenggeng Pumped Storage Power Project, and related Capacity Building. First, it will support the undertaking of a feasibility study and the preparation of detailed design and bid documents for the future planned Matenggeng Pumped Storage Project in Central Java with a planned installed capacity of approximately 600-900MW, including: (i) updating of previous studies to verify engineering and economic feasibility and preparation of basic design and bid documents, and (ii) preparation an environmental and social impact assessment study and the development of land acquisition and resettlement plans. Second, it will provide capacity building assistance to PLN for the planning, development and operation of hydropower projects, especially pumped storage hydropower projects. 4. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN) Under the cancelled Components 1 and 2 of the original project, the location of the Upper Cisokan Pumped Storage Project (PSP) was on the boundary of West Bandung and Cianjur Regencies, at the upstream basin of the Cisokan River in West Java. It would be located appx. 150km southeast of Jakarta, and 30km west of Bandung. The Cisokan River is a major tributary of the Citarum River, which flows to the Java Sea on the north coast of Java. This is no longer part of the restructured project. Under Component 3, the proposed Matenggeng PSP will be located in the Cilojang River catchment, on the border of West and Central Java. The scheme includes an upper and a lower reservoir, located respectively on Cimancing creek and on Citeuteul creek, a tributary of the Cisubang River flowing into the Cijolang River. The Cijolang River lies in the east of the Citarum River. The scheme is yet to be optimized through the Feasibility Level Design, but is likely to have an average net head of 400 m and its installed power range between 600 and 900MW. The Matenggeng and Upper Cisokan schemes are located on separate river systems in different regencies. The Matenggeng scheme will be situated in rural / agricultural landscapes in forested landscapes at the eastern edge of the Pembarasan Range. It falls predominantly within the Western Java Montane Rain Forest, which is classified as critical / endangered as it is one of the few examples of Javan rain forest remaining. The Pembarisan Range is unique on Java as a montane and lower montane range of mountains that is not connected to a volcano nor comprising a volcanic geology. Most of the remaining forest within the project footprint is classified as Limited Production Forest, which allows for forestry and other land uses. There is some conservation forest at the western end of the Range, but that is beyond the footprint of the scheme. The Cilojang River has been impacted by sedimentation from upstream and adjacent land uses, gravel extraction and point source and diffuse pollution. Public Works Department proposed to build an irrigation dam several kms downstream of the Matenggeng scheme on the River. The reservoir areas required for a PSP are much smaller than those of a conventional project of similar capacity, and so have less significant environmental & social impacts. 5. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) Name Sulistiowati Ms., Social Safeguards Specialist Warren Waters, Social Safeguards Specialist Krisnan Pitradjaja Isomartana, Environmental Safeguards Specialist Penelope Ruth Ferguson, Environmental Safeguards Specialist 6. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation The Project was classified as Category A at project appraisal. The ESIA and ESMP were prepared and disclosed. During implementation of the Upper Cisokan Project, PLN has implemented the ESMP for access road construction, routinely collected baseline environmental data, undertaken community consultations, and prepared ESMP Subplans – Watershed Management Plan, Biodiversity Mangement Plan, Social and Community Management Plan. PLN has supervised the preparation and implementation of the Access Road ESMP Implementation Plan by the Access Road contractor, and ensured that the ESMP was included in the Contractors bid documents for the hydropower Environmental Assessment (OP) (BP Yes scheme. Compliance to date has been mostly 4.01) satisfactory. The restructured project will not contain any further activities relating to the Upper Cisokan Pumped Storage Project, but will fund the safeguards document preparation (ESIA, ESMP, LARAP) for the Matenggeng Pumped Storage Project, which will become a separate, stand alone project (to be funded under this project). Early scheme layout options have been screened for safeguards risks by PLN. The construction and operation of the Matenggeng scheme is likely to have significant, potentially irreversible, environmental and social impacts that will require mitigation and management. This includes encroachment into natural The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) forest areas, involuntary resettlement, inundation of land and modification of tributaries. Therefore, the restructured project will remain a Category A project. The potential impacts of Matenggeng will be assessed under the ESIA. The task team supports the harmonization of the ESIA and the ‘AMDAL’ under Indonesian regulations, and agreed that the preparation of the KA ANDAL (detailed ESIA TOR) will be will be submitted to the Bank for review and will be subject to public consultation, prior to finalization, consistent with OP4.01 and the Indonesian regulations. At appraisal, the Natural Habitats Policy was triggered because three endangered mammal species were identified in the project area, located in remnant forest. During project implementation further biodiversity surveys and assessments were completed in the Upper Cisokan Pumped Storage scheme area of influence, and a Biodiversity Management Plan was prepared by PLN to protect and enhance the forest remnants. Ten vulnerable species were identified in the Biodiversity Management Plan. PLN has started to implement the Biodiversity Management Plan, most notably by forming a partnership with the State Owned forest company Perhutani, to agree on the approach to protect existing trees and implement a restoration plan. Natural Habitats (OP) (BP 4.04) Yes In the restructured project, no further work will be funded for the Upper Cisokan Pumped Storage scheme. The policy remains triggered for the restructured project because the Matenggeng Pumped Storage project is located at the edge of the Pembarasan Range, which hosts one of the last montane forest habitats on Java. A Preliminary Ecological Assessment (PEA), funded separately by the World Bank, has identified that the forest habitat is critical / endangered as classified by WWF. The study identified ongoing threats from agricultural encroachment. At least six vulnerable mammalian species, and a high level of endemism amongst birds, are present. The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) The ESIA studies will build on the PEA, and will determine the nature of critical habitats in the project area of influence and the nature and scale of destruction and degradation as a result of the project. If relevant and appropriate, the ESMP could include a biodiversity management plan or similar type of instrument. The Forests policy was not triggered at Project Appraisal because the ESIA for the Upper Cisokan Project concluded that there would be no degradation of critical forest habitats and there was no change to forest management or access to forest resources. For the restructured project the policy is triggered because the preparation of the Matenggeng scheme may lead to an investment decision which would result in potential adverse impacts on natural forests. The scheme is located at the edge of the forest on the Pembarasan Range. This forest is mostly managed for production purposes by the Government of Indonesia, Forests (OP) (BP 4.36) Yes and is a landscape of plantation, natural (modified) and unmodified forest. The communities in the project area rely on the forests for water supplies. The ESIA will build on the PEA and study the nature of the forest habitats and confirm whether there are critical habitats. The ESIA will assess the potential impacts on the forest and conclude whether there will be significant degradation as a direct or indirect result of the scheme. It will also study forest health and the dependency on the forests by local people. If relevant and appropriate, the ESMP could include a biodiversity management plan or similar type of instrument. The Pest Management policy was not triggered during project appraisal because the Upper Cisokan Project would not purchase pesticides or cause potential Pest Management (OP 4.09) No increase in pesticide use. The policy remains not triggered as there will be no pest management, purchase or use of pesticides from the technical studies funded under the project. The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) The PCR policy was triggered at project appraisal. The Upper Cisokan ESIA identified several PCR sites within the project area of influence and a PCR Management Plan was included in the ESMP to manage the removal of mosques and grave sites and protect religious and cultural sites from damage or degradation. The PCR policy remains triggered for the restructured Physical Cultural Resources (OP) (BP project. The Upper Cisokan Pumped Storage Project Yes 4.11) will not receive any further funding. The restructured project will finance the preparation of the Matenggeng scheme that could cause potential impact on PCR. Some sites have been identified in the screening process, such as grave sites and sacred groves. The ESIA will assess and confirm the nature and location of PCR and the ESMP will include methods to manage the impacts from the scheme. The Indigenous Peoples policy was not triggered at project appraisal because the social assessment for the Upper Cisokan Project concluded there were no communities that met the definitions of the policy within the project area of influence. The policy remains not triggered for the restructured project. Based on the List of Indigenous Peoples Indigenous Peoples (OP) (BP 4.10) No published by the Ministry of Social Affairs in 2010 compiled by the World Bank using EgiMap, screening has concluded that there are no IP in the villages and districts in or near the project area of influence, both in West and Central Java Provinces. The ESIA studies will confirm this. Trigger for this policy is to be determined. The policy was triggered at project appraisal and Resettlement Action Plans prepared for the Upper Cisokan Pumped Storage Project. The total area of land to be acquired for the project was approximately 833 Involuntary Resettlement (OP) (BP 4.12) Yes Ha of largely agricultural and forest areas. The total population affected through land acquisition was 2205 households with 8230 people. The policy remains triggered for the restructured The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) project. The restructured project will no longer fund any component related to the Upper Cisokan scheme, but will fund the preparation of the Matenggeng scheme, which will involve land acquisition and resettlement. The total area of land to be acquired for the project is still under investigation but is expected to include about 20-40Ha of largely agricultural and forest areas, of which less than one hectare of land is expected to be flooded by each of the two reservoirs. The total population affected through land acquisition is not yet known, although only about 100 families are expected to be relocated or physically displaced by the two dams and reservoirs. A much larger number of people will be affected by the quarries, access roads, transmission lines and temporary facilities. PLN will prepare the Land Acquisition and Resettlement Action Plans under the restructured project, in accordance with the policy. The policy was triggered at project appraisal. The original project involved the construction of two dams as part of the Upper Cisokan Pumped Storage Project. The policy remains triggered for the restructured project. The restructured project will fund the preparation of the Matenggeng Scheme, which Safety of Dams (OP) (BP 4.37) Yes includes the design of two dams. The TOR for the feasibility study will include provisions to adjere to OP4.27, and relevant sections of dam safety will be included in the ESIA. As per OP4.37, the panel of experts will be retained and will be fielded at key milestones of the feasibility study, design and preparation of the ESIA and LARAP. The existing project and the restructured project are Projects on International Waterways No entirely within the island of Java, Indonesia. The policy (OP) (BP 7.50) is not triggered. The existing project and restructured project are not Projects in Disputed Areas (OP) (BP 7.60) No located in disputed areas. The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. SUMMARY OF KEY SAFEGUARD ISSUES 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. While the restructured project will not finance the development of any hydropower projects, the studies and assessments financed can lead to an investment decision to develop the Matenggeng scheme which could potentially have significant, irreversible environmental and social impacts. It therefore remains a Category A project. The environmental and social screening activities undertaken by PLN and the Preliminary Environmental Assessment funded by the World Bank have identified several potentially significant impacts if the Matenggeng Scheme if funded in future. These impacts will be studied in the ESIA. Natural forest habitats will be damaged and degraded from construction activities and induced development / encroachment. The range of vulnerable species may be impacted, and this may increase the decline in populations. Community relationships with the forest and the forest ecosystem services (such as domestic and agricultural water supplies) may be degraded or lost. River habitats will be modified from the dam structures, reservoir inundation and the changes in the sedimentation and erosion potential of the downstream flow. Communities will experience construction-related hazards and risks, which can disproportionately affect women, children and vulnerable community members. The total area of land to be acquired for the project is still under investigation but is expected to include about 20-40 hectare of largely agricultural and forest areas, of which less than one hectare of land is expected to be flooded by the two reservoirs. No census of affected people has yet been started however based on prefeasibility environmental and social screening some estimates of impacts are still possible. Although only about 100 families are expected to be relocated or physically displaced by the two dams and reservoirs, a much larger number of people will be affected by the quarries, access roads, transmission lines and temporary facilities, for none of which have locations been decided. OP4.10 has been triggered ‘TBD’. While initial screening found no presence of indigenous people living in the project area this must still be confirmed by the ESIA. For a full description of safeguards implementation progress, refer to Project Status in the Restructuring Paper. The remaining safeguards activities related to the Upper Cisokan Project have been documented in the Action Plan as agreed with PLN. This will mainly cover implementation of economic livelihoods programs, basic infrastructure provision, and resolution of social issues in the quarry areas, which are expected to complete by November 2018. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. A irrigation dam project is being now planned about 15km downstream from the pump storage project (Matenggeng Multi-purpose Dam Project of Ministry of Public Works) and land acquisition has begun, with impoundment planned in 2023. Therefore, the ESIA will include analysis of cumulative environmental and social impacts. 3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. A recent pre-feasibility update study by Newjec, on behalf of PLN and funded by the project, identified several alternative lower dam locations, scheme configurations, quarry sites and access roads. The scheme will be further optimized during the restructured project. The Newjec study included environmental and social screening and a multi-criteria weighted analysis of the options (including environmental and social criteria). The preferred scheme configuration (with Lower Dam ‘C2’) has similar or more preferable environmental and social criteria to the other The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) options, including fewer people requiring resettlement, smaller volumes of quarry materials, less kilometers of new road required and less habitat being affected. The technical work funded by the restructured project will be informed by the PEA and the ESIA and as such should include design solutions to avoid significant impacts. This will include the location of quarries, roads and other supporting infrastructure, transmission line routes, operational features of the dams and construction methodologies. The ESIA will document the assessment of alternatives. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. At project appraisal, the capacity assessment identified that PLN would need significant support to implement the ESMP and LARAP. The PLN UIP VI office in Bandung tasked with project management had no experience in the management of safeguards for the construction of a hydropower project. The ESMP had complex requirements to implement, such as an adaptive management approach to biodiversity and integrated catchment management objectives. The safeguards team at PLN has since developed significant skills and experience on the job during project implementation. Capacity was supplemented by consultants for specific tasks such as environmental monitoring, preparation of ESMP sub-plans, and grievance redress management. The team also received technical support at critical times from Bank's staff and consultants at critical times to build relevant skills. PLN set up a special unit under its Division of Health, Safety, Security and Environment for managing the preparation of the Matenggeng ESIA and LARAP, including contracting and managing the ESIA consultant, managing consultations, reviewing the ESIA, ESMP and AMDAL documentation. This team has been involved in the implementation of the Upper Cisokan ESMP and LARAP to date. It has also attended WB safeguards training workshops and learning centers. In response to the lessons learnt around capacity gaps, PLN adopted a Capacity Building Plan under Component 3, which is aimed at - inter alia - integrating safeguards management fully and systematically into both the planning and implementation of hydropower projects. This would enable PLN in implementing ESMP and specialized sub-plans and to supervise Contractor’s ESMP In future projects. Other lessons from Upper Cisokan include: i) to ensure the ESIA consultant have international hydropower experience; 2) integrate the feasibility and detailed design with the ESIA process, to ensure there is the opportunity to mitigate safeguards impacts through design; iii) develop a stakeholder engagement plan early on in the ESIA process that will facilitate meaningful participation throughout the project; and iv) improve bid documents and supervision contracts to ensure that Contractors are capable of preparing and implementing Contractor’s ESMP and mitigation is achieved on the ground. An Action Plan covering the remaining safeguards activities related to the Upper Cisokan Project which will continue to be monitored by the World Bank has been prepared and agreed with PLN. This will cover the implementation of the economic programs, provision of basic infrastructure and resolution of social issues in the quarry areas. The Plan has been included in the Restructuring Package. 5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The KA ANDAL / detailed ESIA TOR for the Matenggeng ESIA study will be publicly disclosed in English and Bahasa Indonesia and meaningful consultations will be conducted in the project area by PLN. Consultations will continue throughout the ESIA and LARAP processes in accordance with a Stakeholder Engagement Plan. The type and frequency of consultation will be targeted for each stakeholder group. In general, the purpose of each meeting or interview will be to first convey information to the people regarding the project, and secondly to seek feedback to gain an understanding of their perceptions of the project, their aspirations and to receive their comments on how the project may affect them. Methods will include written documentation, maps and graphics, social and mass media, oral presentations, small meetings, interviews and public meetings The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) Stakeholders include those affected directly or indirectly, as well as the local governments, Conservation Department, Perhutani (State Owned Forestry Company), conservation NGOs, Public Works Department.. The draft ESIA, ESMP and LARAP will be disclosed locally in Bahasa Indonesia and English. They will be disclosed on the World Bank website as deliverables of the restructured project, but since there is no funding commitment for the construction of the Matenggeng scheme, they will not be disclosed as safeguards instruments as part of a project appraisal process. B. DISCLOSURE REQUIREMENTS Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission for disclosure 21-Oct-2010 15-Apr-2010 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors 13-Apr-2011 “In country� Disclosure Country Date of Disclosure Indonesia 01-Mar-2010 Comments Resettlement Action Plan/Framework Policy Process Date of receipt by the Bank Date of submission for disclosure 03-Jan-2011 25-Jan-2011 “In country� Disclosure C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review and Yes approve the EA report? The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or degradation of critical natural Yes habitats? If the project would result in significant conversion or degradation of other (non-critical) Yes natural habitats, does the project include mitigation measures acceptable to the Bank? OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts Yes on cultural property? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as Yes appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Practice Manager review Yes the plan? OP/BP 4.36 - Forests Has the sector-wide analysis of policy and institutional issues and constraints been carried out? Does the project design include satisfactory measures to overcome these constraints? Does the project finance commercial harvesting, and if so, does it include provisions for certification system? OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? Yes Have the TORs as well as composition for the independent Panel of Experts (POE) been Yes reviewed and approved by the Bank? Has an Emergency Preparedness Plan (EPP) been prepared and arrangements been No made for public awareness and training? The World Bank RESTRUCTURING ISDS Upper Cisokan Pumped Storage Hydro-Electrical Power (1040 MW) Project (P112158) The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for Yes disclosure? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local Yes NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared Yes for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of Yes safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and Yes the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader(s) Peter Johansen Approved By Safeguards Advisor Peter Leonard 19-Dec-2017 Practice Manager/Manager Julia M. Fraser 22-Dec-2017