INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: ISDSC276 Public Disclosure Copy Date ISDS Prepared/Updated: 07-Nov-2011 I. BASIC INFORMATION A. Basic Project Data Country: Indonesia Project ID: P125405 Project Name: Fourth National Program for Community Empowerment in Urban Areas - PNPM-URBAN IV (P125405) Task Team Leader: George Soraya Estimated Appraisal Date: 20-Jan-2012 Estimated Board Date: 03-May-2012 Managing Unit: EASIS Lending Instrument: Specific Investment Loan Sector: Rural and Inter-Urban Roads and Highways (26%), Other social services (26%), Sanitation (25%), Sub-national government administratio n (14%), Public administration- Other social services (9%) Theme: Participation and civic engagement (39%), Other urban development (38%), Other social development (11%), Municipal governance and in stitution building (9%), Other social protection and risk management (3%) Financing (In USD Million) Financing Source Amount Borrower 100.00 International Bank for Reconstruction and Development 150.00 Total 250.00 Environmental Category: B - Partial Assessment Is this a Repeater project? Yes B. Project Objectives 17. The Fourth National Program for Community Empowerment in Urban Areas, PNPM-Urban IV, is a continuation and expansion of the ongoing PNPM-Urban I, II, and III projects. The overall development objective is to improve the living conditions and local governance of the urban poor. Public Disclosure Copy C. Project Description The project size is $900 million, of which $250 million (28%) will be financed under the loan; an additional $220 million (25%) will be financed by the Islamic Development Bank (The IDB will finance the same program in 14 provinces in the Western Regionof Indonesia (under the same guidelines as the World Bank); all the remaining provinces are supported by the World Bank) and $430 million (47%) would be financed by counterpart funds (national and local government as well as community contributions). The project is moving from an annual funding cycle to support a three-year program. Currently, it costs $200 million annually to maintain the program, and the resource requirements are expected to increase with the intensification of investments in the poorest areas. This represents 80% of the overall grant from national government to local governments, but less than 1% of overall fiscal transfers; the program is 2% when compared to municipal budgets. Project components include: Component 1: Kelurahan Block Grants, BLM ($182.5 million). This component would support block grants to kelurahans to support the community board of trustees (BKM), the socialization process, the formation of the community development plans (CPD) based on which investments would be financed, and coordination of sectoral programs (#channeling#). CDP investments fall under three categories: (a) physical investments in tertiary infrastructure and community buildings; (b) revolving loan funds provided to the poor who typically do not have access to other sources (Because of the stringent performance requirements for revolving loan funds, few kelurahans qualify and it is expected that less than 2% of the total loan will go toward RLFs); and (c) social assistance, including training and housing rehabilitation, for the poorest. This component would also pilot a specialized intervention for the poorest at the neighborhood level in selected areas, chosen in collaboration with local governments that commit to co-plan and co-finance investments with the community groups. The program will be targeted at areas with high population density, high poverty incidence, disaster-prone, and/or requiring complex interventions. Component 2: Capacity Building for Communities and Local Governments ($45 million). Similar to predecessor projects, this component would finance (i) government-hired (satker) facilitators to carry out social intermediation activities and community training in supporting BKMs to develop and implement their CDPs; and (ii) training and capacity building of local government (lurah and local government) to strengthen their support to PNPM. Specialized training programs will be developed for the lurah in each kelurahan (ward) as well officials at the kecamatan (sub-district), kabupaten (district), and kota (city) levels. At the kota level, deeper engagement with the mayors will be exploited and learning exchange between cities will be facilitated through a mayors# dialogue on PNPM-Urban. The focus will be on (i) channeling other local government poverty programs through the BKMs and (ii) better aligning and incorporating the CDPs into the musrenbang process/ the city#s investment plans. In addition, BKM training would be focused on increasing capacity to take on the role of a coordinating and channeling body for all CDD-based poverty alleviation programs. Component 3: Project Management Support ($22.5 million). This component would support the PMU with hiring consultants or service providers (NMC, OSPs, city coordinators, etc) to assist in project implementation. This arrangement would be evaluated and expanded to deal with the new features of the PNPM-Urban IV, especially the program targeted for the poorest areas. In addition, the component would continue to support monitoring and evaluation activities to ensure timely progress reports and annual evaluation reports for feedback to strengthen program implementation; activities could also support capacity building on M&E for the national government. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) Public Disclosure Copy The PNPM-Urban IV will cover nearly 11,000 kelurahans in the country which includes those under the ongoing PNPM-Urban I, II, III, and UPP-2 Additional Financing. Salient physical characteristics relevant to safeguard analysis are activities financed under Component 1, i.e. Kelurahan Block Grants. Typical activities for this component fall into four main categories: (a) small scale infrastructure investments pre-identified by the community; (b) BKM managed revolving loan funds provided to the poor for income generating activities and who typically do not have access to other lending sources; (c) provision of social assistance, including training for the poorest and most vulnerable in the community; and (d) a specialized intervention for the poorest at the neighbourhood level that focuses more intensively in one particular area of the urban ward. This program would start with the preparation a detailed Community Settlement Plan (CSP) and be followed by implementation of priority investments (which requires co-funding from the city government) to upgrade the living conditions of the area. The types of priority investments are the same with those of (a). Experiences from the UPP series and ongoing PNPM-Urban series confirm that activities financed by the Kelurahan block grants (including the neighbourhood level program) are mostly small-scale physical infrastructure, such as community sanitation, toilet and water supply, tertiary drainage, and tertiary roads, with limited service area within the kelurahan. Experience shows that there are two kinds of activities that contribute to environmental risks: (a) those related to tertiary roads, bridges and drainage activities, and (b) those related to public toilets, sanitation and water supply. Yet, experience also show that potential impacts of activities that will be financed under component 1 of the Project are likely to be site specific, not significant and can be managed locally by the community by adopting good engineering design and construction practices. Types of priority investments financed by the block grants under component 1, hence the potential environmental impacts and land needs, will only be identified during project implementation after the CDPs, subproject proposals, and CSPs are prepared. The CSPs will include best management practices to mitigate potential environmental and social impacts. The project will continue to finance small scale sub-projects, therefore no significant amount of land is foreseen for community investments. Similar to the UPP series and ongoing PNPM-Urban series, most of the land that are needed by sub-projects in PNPM Urban IV will likely voluntary contribution from the beneficiaries. However, as the neighbourhood level program is collaborative initiative between the community group and local government (as well as other interested parties such as private sector) in particular poorest area of the urban wards, some investment may involve land acquisition or involuntary resettlement. The location and intensity of involuntary resettlement, if any, will only be known during project implementation, i.e., preparation of CDPs, CSPs and sub-project proposals. Furthermore, under the neighbourhood level program, the project would support the management or conservation of cultural heritage that are proposed jointly by the community group and the local government. Similar to involuntary resettlement, the types, location and management or conservation measures of cultural heritage will only be known during project implementation. In all UPPs and ongoing PNPM-Urban projects, as of to date there is no report on the involvement or impacts on the IVPs communities. PNPM Urban IV will cover all kelurahans (urban wards)/villages of the ongoing UPP series and PNPM-Urban projects across the country. Initial screening in reference to the IPs Study (2010) prepared by the Bank showed that the project anticipates that 20 villages located outside Java in 11 provinces that are included in PNPM-Urban IV would have IPs communities who may be beneficiaries or, those who may or may not be impacted by the Public Disclosure Copy project. These include provinces of Aceh, Riau, Bangka Belitung, Kepulauan Riau, NTT, Kalimantan Selatan, Kalimantan Timur, Sulawesi Tengah, Sulawesi Selatan, Gorontalo, and Irian Jaya Barat. E. Borrowers Institutional Capacity for Safeguard Policies The Borrower has more than 10 years of experience in managing environmental and social safeguards under the UPPs and PNPM-Urban series. It has adequate capacity to implement the ongoing PNPM-Urban series# environmental guidelines, land acquisition and resettlement frameworks as well as IVP framework, as they have managed the implementation of UPPs and PNPM-Urban series over more than 10 years. The National Consultant Team (NMC) who is currently assisting the PMU of the Executing Agency will maintain to have experts, consultants and facilitators who have sufficient experiences in environmental management, social issues including land acquisition and gender, and, in handling IVPs. The project will update and adopt the Environmental Guidelines, Land Acquisition and Resettlement Policy Framework and IVPs Framework as well as the project manual and technical guidelines that have been adopted by the PNPM-Urban III. The Environmental Guidelines will be updated to ensure that management or conservation of cultural heritage will be properly addressed so that potential negative impacts can be avoided, minimized and mitigated. The IVP framework will be updated to commensurate with the OP (become IPPF) 4.10 and in reference to an Initial Social Assessment prepared based on lessons learned from other projects, as available. Accordingly, the PNPM-Urban III#s project manual and technical guidelines, which implement the safeguards frameworks, will be updated as necessary to accommodate the need for management and conservation of cultural heritage and lessons learned from the ongoing PNPM urban projects (and other projects for IPs, as available), and to improve the quality of project implementation. The safeguards frameworks and project manual as well as technical guidelines have been used for PNPM-Urban series regardless of financing sources, and this will continue in the proposed project. The project will continue strengthening the capacity of project management staff, consultants and facilitators in environmental and social safeguards through regular training. Web-based reporting will be continuously improved. F. Environmental and Social Safeguards Specialists on the Team Indira Dharmapatni (EASIS) Virza S. Sasmitawidjaja (EASIS) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Explanation Environmental Assessment OP/BP 4.01 ✖ The proposed project is an urban CDD program and similar to UPPs and PNPM Urban series, the nature of the investments (mostly tertiary level infrastructure such as local road/bridge construction Public Disclosure Copy and/or repairs, footpaths, tertiary drainage, community water supply, and sanitation/public toilets) are not likely to have any large scale, significant or irreversible impacts. Potential impacts are likely to be site specific, not significant and can be managed by good engineering design and construction practices. Observations in some projects under previous iterations of UPPs and ongoing PNPM-Urban projects suggest that environmental related-issues mainly occur due to inadequate guidance, monitoring and supervision by the facilitators and OCs (Oversight Consultants) during the planning and implementation stages. The proper mitigation and prevention methods proposed are proper training (on specific technical measures) and monitoring of the supervising field engineers, especially on site selection for water and sanitation projects, use of tested water quality from wells, and maintenance of the facilities. The project will adopt the Environmental Guidelines of the ongoing PNPM-Urban III and update it to include process and requirements of management and conservation of cultural heritage financed by Component-1. Accordingly, the PNPM-Urban III#s project manual and technical guidelines for field implementation will be updated to include management and conservation of cultural heritage and based on lessons learned/implementation experiences of the previous UPPs/PNPM Urban projects. The updated project manual and technical guidelines will ensure that the potential environmental and social impacts are addressed as an integral part of project design, appraisal and implementation. In the case that the sub- project falls into Indonesian environmental regulation requirement category, the environmental management plan (UKL-UPL or SPPL) will be prepared accordingly. Natural Habitats OP/BP 4.04 ✖ The proposed subprojects will not cause conversion or degradation of critical or other natural habitats. Forests OP/BP 4.36 ✖ None of the project components will pass through any Public Disclosure Copy environmentally sensitive forests or national parks. Pest Management OP 4.09 ✖ Physical Cultural Resources OP/BP 4.11 ✖ In previous UPPs series and PNPM-Urban projects, there is no sub- project involving or impacting Physical Cultural Resources (PCR), i. e. sites with archeological, paleontological, historical, religious or of unique natural value as defined under the policy. The project would support the management and/or conservation of cultural heritage under the neighbourhood level program, based on the CDPs, CSPs and sub-project proposals, as proposed and agreed by community groups and local governments. The types, location and management or conservation measures for cultural heritage will be known during project implementation, i.e. during the preparation of CDPs, CSPs and sub-project proposals. The project is therefore triggers OP/BP 4.11 on PCR. PNPM-Urban IV will adopt the PNPM-Urban III#s Environmental Guidelines and update it to include the process and requirements of management and conservation of cultural heritage. Accordingly, the project will adopt the PNPM-Urban III#s project manual and technical guidelines by which the environmental aspect will be updated to include procedures and requirements to ensure that management or conservation of cultural heritage will avoid, or mitigate potential negative impacts and sufficient mitigation measures to address such negative impacts are implemented. Indigenous Peoples OP/BP 4.10 ✖ In all UPPs and ongoing PNPM-Urban series, to date there is no report on the involvement or impacts on the IVPs. Screening made in reference to the IP Study (2010) reveals that IPs communities as defined by the policy are in existence in 20 villages in 11 provinces outside Java (provinces of Aceh, Riau, Bangka Belitung, Kepulauan Riau, NTT, Kalimantan Selatan, Kalimantan Timur, Sulawesi 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. Safeguard Policies Triggered Yes No TBD Explanation Tengah, Sulawesi Selatan, Gorontalo, and Irian Jaya Barat). The project might involve IVPs as beneficiaries or might have impacts on IVPs. The type, location, and intensity of impacts will be only known Public Disclosure Copy at the project implementation, i.e. during the preparation of CDPs, CSPs and sub-project proposals. For this reason, the project triggers OP/BP 4.10 on Indigenous Peoples. The project will adopt the IVPs framework of PNPM-Urban III and update it to ensure that the framework (IPPF) is in commensurate with OP 4.10 on Indigenous Peoples. The IPPF will be prepared by the Executing Agency based on an Initial Social Assessment based on lessons learned from other projects as available. The draft IPPF will be consulted with the National Indigenous Peoples Networks/Agency. Accordingly, the project manual and technical guidelines of PNPM- Urban III will be updated in reference to the IPPF and adopted by the project. Involuntary Resettlement OP/BP 4.12 ✖ It is very likely that the project will continue to finance small scale sub-projects and therefore no significant amount of land is foreseen for community investments. Similar to the previous UPP series and ongoing PNPM-Urban series, it is expected that most of the beneficiaries would voluntarily contribute their land for these purposes. The sites and sizes of land that are needed for subprojects will not be known until the CDPs, detailed CSPs and sub-project proposals are prepared. The proposed project anticipates that under the neighborhood level program as it involves co-planning and co-financing by the local government and community groups, there would be land acquisition or involuntary resettlement. Therefore, the project triggers OP/BP 4.12. The project will update and adopt the Land Acquisition and Resettlement Policy Frameworks of the ongoing PNPM-Urban III. The project manual and technical guidelines of PNPM-Urban III will be updated as necessary to accommodate lessons learned and good practices in project implementation. Safety of Dams OP/BP 4.37 ✖ Projects on International Waterways OP/BP ✖ 7.50 Projects in Disputed Areas OP/BP 7.60 ✖ Public Disclosure Copy III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 15-Dec-2011 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: ISDS of Concept Stage will be launched on December 8, 2011. IV. APPROVALS Signed and submitted by: Task Team Leader: Name: George Soraya Date: 20-Nov-2011 Approved By: Regional Safeguards Coordinator: Name: John R. Butler (RSA) Date: 14-Dec-2011 Comments: Sector Manager: Name: Franz R. Drees-Gross (SM) Date: 23-Nov-2011 Comments: Approved. 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.