INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: ISDSC602 Public Disclosure Copy Date ISDS Prepared/Updated: 28-Mar-2012 I. BASIC INFORMATION A. Basic Project Data Country: Indonesia Project ID: P127134 Project Name: Solid Waste Management Improvement Project for Regional and Metropolitan Cities (P127134) Task Team Leader: James Orehmie Monday Estimated Appraisal Date: 15-Nov-2012 Estimated Board Date: 28-Feb-2013 Managing Unit: EASIS Lending Instrument: Specific Investment Loan Sector: Solid waste management (100%) Theme: Pollution management and environmental health (40%), Other urban development (30%), Climate change (20%), Municipal finance (10%) Financing (In USD Million) Financing Source Amount Borrower 22.50 International Bank for Reconstruction and Development 100.00 Bilateral Agencies (unidentified) 20.00 Financing Gap 0.00 Total 142.50 Environmental Category: A - Full Assessment Is this a Repeater project? No B. Project Objectives 17. The project development objective is to support improvements to solid waste management in participating municipalities through selective interventions in waste minimization, collection, transfer and disposal. Public Disclosure Copy C. Project Description 19. The PDO will be achieved through the implementation of these four components, namely, Component A: Improvements in Solid Waste Management Systems ($122.5m), these funds would be on-granted to the participating municipalities and would finance the re-engineering and/or rehabilitation and/or closure of existing landfill/disposal sites, construction of new state of the art sanitary landfills ( equipped with leachate treatment plants, heavy equipment such as compactors and bulldozers, facilities for staff/operator), waste treatment systems (such as sorting and composting plants, landfill gas to energy/flaring plants, and or other treatment systems as appropriate) and transfer stations. The 3 R approach ( reduce, re-cycle, re-use) will be incorporated in the design and infrastructure works to minimize waste generation rates at the household level and local markets, and subsequently lowering collection, transfer and disposal costs, and extending the life of the landfills. The selection criteria for participating provinces and municipalities which will include financial and technical considerations, will be agreed upon as part of project preparation and will also be aligned with Indonesia's Master Plan 2011-2025. The draft selection criteria are attached as Annex 2 of the PCN document. This component will be rolled out in two phases. Phase 1 investments will be ready for implementation soon after project effectiveness and Phase 2 investments will be prepared, appraised and implemented in subsequent years during project implementation. The potential Phase 1 and 2 groups of municipalities under consideration are the Cities of Semarang, Yogyakarta, Medan, Bekasi and Tangerang. The tentative list of proposed investments are included in Annex 3 of the PCN document. The proposed investments are presently subject to a feasibility study to ascertain their commercial, economic and technical viability. Both phases will be completed within the five year life cycle of the project as the proposed lending instrument will be a specific investment loan (SIL). The proceeds of the loan would be on-granted to the participating municipalities depending on the institutional and implementation arrangements agreed upon, the relevant national regulations and other considerations. Component B: Technical Assistance to support sustainable management system ($10m). This component is expected to be co-financed or parallel financed as a donor grant. The source of financing will be confirmed during project preparation and will finance the technical assistance required to support the institutional framework needed to sustainably operate and maintain the effective management of these systems. The government and potential participating municipalities, given the past experiences in the sector, have suggested a partnership approach between the national and participating municipal governments as the institutional framework to manage each provincial waste management system. The BLU approach (Badan Layanan Usaha, as it is known under Indonesia regulations) involves establishing service units (in the Dinas Kebersihan, which is the cleansing services department of the participating municipalities). The established BLU's would be set up with a clear and pre- defined benchmarks. These benchmarks could include the completion of O&M contacts after a number of years to demonstrate how the improved systems are to be managed, as well as the cost recovery measures and the allocation of operation budgets by the local parliament (DPRD). This component will also provide support to establish a country wide CDM like Program of Activities (POA) for the solid waste management sector as a whole to coordinate market based carbon revenue generation opportunities. This component will also include funding for setting up publically accessible information based National Solid Waste Benchmarking System (NSWBS). Details of this system will be agreed upon during project preparation but will include an incentive based mechanism to improve management of these operations. Component C: Social Development Component ($5m). The funding source for this component will be confirmed during project preparation. This component will address the social needs of waste pickers and affected host community members, particularly owners of livestock. Challenges related to resettlement/land acquisition and the potential loss of livelihood for waste pickers and livestock owners will be comprehensively Public Disclosure Copy addressed to help improve their social development outcomes. This component will not finance any physical investments or works associated with landfill workers or livestock, as these need to be integrated into the landfill operations as a whole and are thus included in Component A. This component will finance training, continuous consultations with affected households, participation activities and potentially a fund to address major social concerns during preparation. Component D: Advisory Services ($5m) will finance high level strategic and analytical studies to underpin advice to GoI and municipalities on potential sector policy reform options going forward. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project will be implemented in larger-sized cities in Indonesia. The investments that will be supported will be in urban and peri-urban areas. As mentioned in section C, the cities of Semarang, Medan, Yogyakarta, Tanggerang, and Bekasi are currently under consideration. Among these only Yogyakarta will require physical resettlement of an estimated 15 households and the five hectares of land in question belongs to the Sultanate. In the four remaining potential project sites some land acquisition is also likely to be required. Finally, waste pickers (numbers to be determined) are active at the existing landfills, and members of host communities graze animals (cattle and goats) there. E. Borrowers Institutional Capacity for Safeguard Policies Within the Ministry of Public Works, the Directorate of Bina Program will oversee project preparation activities, assisted by the Directorate of Environmental Sanitation. Together they have adequate capacity to ensure that safeguards are properly addressed during project preparation. The environmental and social impact management capacities of the Dinas Kebersihan (Sanitation Departments) in the cities are weak, and they will need to be strengthened so that each city can have the necessary safeguards instruments prepared – a requirement that must be fulfilled prior to consideration for funding under the project. A project implementation unit (PIU) will be established in each Dinas Kebersihan and will have either qualified staff or consultants to handle safeguards during preparation and implementation. In order to address capacity issues, technical assistance will be provided as part of component B.This will include capacity building and on the job training of staff at the municipal level. F. Environmental and Social Safeguards Specialists on the Team Knut Opsal (EASER) Thomas E. Walton (AFTEN) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/BP 4.01 Yes Landfills and solid waste processing facilities can have significant impacts on Public Disclosure Copy ground and surface water quality; community environment because of odors, vectors, and blowing trash; traffic; and aesthetics. Full ESIAs covering environmental impacts and social impacts other than those addressed under OP 4.10 and 4.12 will be required for most new landfills and some processing facilities, and ESMPs ( i.e Environmental and Social management Plans) will be required for other investments. ESIAs and/or ESMPs for Phase 1 investments will be prepared and disclosed prior to appraisal. A consolidated English language executive summary of the ESIAs for Phase I projects will be prepared for distribution to the Executive Directors. An ESMF ( Environmental and Social Management Framework) will also be prepared and disclosed prior to appraisal to guide the preparation, review and approval of EIAs and ESMP for investments in Phase 2. As part of due diligence at existing facilities, ESIAs and ESMPs for investments to be made at existing solid waste management sites will include in their scope an assessment of the impacts being caused by the existing operations and recommendations for remedial action. Natural Habitats OP/BP 4.04 No Facilities will be sited in already disturbed areas. Investigation of the potential for groundwater contamination from a landfill to affect natural habitat will be included in the scope of ESIAs. Forests OP/BP 4.36 No The project does not support or influence forest management. Pest Management OP 4.09 TBD The need for chemical control of flies and vermin at the landfills and processing facilities is yet to be determined. Physical Cultural Resources OP/BP 4.11 TBD Whether PCR including landscapes of aesthetic or cultural value is affected directly or indirectly will be determined when locations of investments are known. Should any PCR be identified that could be adversely affected by a project investment, a PCR management plan will be prepared. Indigenous Peoples OP/BP 4.10 TBD It is unlikely that indigenous people will be affected by the project, but this will not be confirmed until locations of investments are known.The determination on the presence or absence of Indigenous Peoples will be carried out as part of the Social Assessment. If Indigenous peoples are present, and Indigenous Peoples Plan will be prepared prior to appraisal. Involuntary Resettlement OP/BP 4.12 Yes Land acquisition and/or physical resettlement will be necessary for some investments. RAPs will document potential resettlement- and land acquisition impacts and specify appropriate mitigation measures.In addition the livelihood of waste pickers and owners of livestock grazing on the landfills of the host Public Disclosure Copy communities will be affected. The general extent of impacts on livelihoods will be determined by a preliminary social survey to be carried out in parallel with the feasibility study. The social survey will determine whether the EIA or the RAP(s) will be the most appropriate instrument in which to address livelihood-related impacts. Safety of Dams OP/BP 4.37 No The project will not finance dams. Projects on International Waterways OP/BP No The project will not affect the quality or quantity of water in any international 7.50 waterway. Projects in Disputed Areas OP/BP 7.60 No None of the potential participating cities is located in a disputed area. III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 05-Nov-2012 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS: The project will be implemented in two phases. Safeguards documents for Phase 1 cities ( EIA's, ESMPs and RAPs) will be part of the package presented for Board approval. The studies for them will commence parallel with final feasibility studies, in April 2012 and are expected to be completed in October 2012. An ESMF will also be prepared and disclosed prior to appraisal; it will explain the procedures and institutional responsibilities for preparation, review and implementation of safeguards documents for Phase 2 cities. The corresponding studies for Phase 2 cities will begin during project preparation, in early 2014. Wherever possible, Indonesian and World Bank safeguards documents work will be coordinated so that a single report, either ANDAL or UKL/UPL, will meet the requirements of both. IV. APPROVALS Task Team Leader: Name: James Orehmie Monday Approved By: Regional Safeguards Coordinator: Name: Panneer Selvam Lakshminarayanan (RSA) Date: 28-Mar-2012 Sector Manager: Name: Franz R. Drees-Gross (SM) Date: 16-Mar-2012 Public Disclosure Copy 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.