SFG1985 MINISTRY OF FINANCE DIRECTORATE GENERAL OF FINANCING AND RISK MANAGEMENT DIRECTORATE OF GOVERNMENT SUPPORT AND INFRASTRUCTURE FINANCING THE INDONESIA INFRASTRUCTURE FINANCE DEVELOPMENT TRUST FUND (IIFD-TF) ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK FINAL 9 March 2016 TABLE OF CONTENTS TABLE OF CONTENTS .....................................................................................i LIST OF TABLES.............................................................................................iii LIST OF FIGURES ...........................................................................................iii LIST OF APPENDICES ...................................................................................iv LIST OF ACRONYMS .......................................................................................v EXECUTIVE SUMMARY................................................................................viii 1.0 INTRODUCTION .....................................................................................1 1.1 BACKGROUND............................................................................................. 1 1.2 OBJECTIVE AND RATIONALE OF THE ESMF OF IIFD .............................. 2 1.3 SCOPE AND METHODOLOGY .................................................................... 2 1.3.1 Scope for the ESMF ........................................................................ 2 1.3.2 Methodology .................................................................................... 4 2.0 IIFD PROJECT DESCRIPTION ..............................................................6 2.1 IIFD PROJECT COMPONENTS .................................................................... 6 2.1.1 Component 1: Strengthening Individual Agencies ........................... 6 2.1.2 Component 2: Legal and Regulatory Considerations ....................... 6 2.1.3 Component 3: Project Selection, Preparation and Transaction ........ 7 2.1.4 Component 4: Inter-Agency Coordination ........................................ 7 2.2 INDICATIVE SAFEGUARDS INSTRUMENTS REQUIRED BY IIFD ............. 7 2.3 INSTITUTIONAL ARRANGEMENTS OF IIFD ............................................... 8 2.3.1 Implementing Agency ...................................................................... 8 2.3.2 Other Partners ............................................................................... 10 2.4 PROJECT PHASE, ACTIVITIES, SCREENING AND APPROVAL PROCESSES OF IIFD ................................................................................. 10 2.4.1 Preparation Phase ......................................................................... 10 2.4.2 Transaction Phase......................................................................... 18 3.0 POLICIES AND LEGISLATIVE FRAMEWORK ...................................23 3.1 THE WORLD BANK SAFEGUARD POLICIES ........................................... 23 3.2 INDONESIAN REGULATIONS .................................................................... 24 3.3 GAP ANALYSIS AND GAP FILLING BY ESMF ......................................... 26 4.0 GUIDANCE FOR THE PREPARATION of ENVIRONMENTAL AND SOCIAL SAFEGUARDS DOCUMENTS ..............................................29 4.1 ENVIRONMENTAL AND SOCIAL SAFEGUARDS ..................................... 29 4.1.1 Environmental and Social Safeguards Inclusion for the TOR FS ... 29 4.1.2 Environmental and Social Safeguard for the FS ............................ 31 4.1.3 Gap Analysis Against ESMF .......................................................... 32 4.1.4 Environmental and Social Safeguard for RFP Development .......... 34 4.1.5 Guidelines for Development of Environmental Documents ............ 36 4.1.6 Physical Cultural Resources Management Framework .................. 36 ESMF for IIFD i 4.1.7 Guideline for Development of Social Documents (LARAP, IPP, Forest Partnership) ........................................................................ 37 4.2 LAND ACQUISITION AND RESETTLEMENT POLICY FRAMEWORK ...... 38 4.3 INDIGENOUS PEOPLE POLICY FRAMEWORK ........................................ 47 4.3.1 Screening and Assessment of Potential Impacts on IPs ................ 49 4.3.2 Preparing Social Assessment and Indigenous Peoples Plan (IPP) .............................................................................................. 50 5.0 PUBLIC CONSULTATION AND DISCLOSURE ...................................50 6.0 INSTITUTIONAL ASSESSMENT AND REQUIRED CAPACITY BUILDING PROGRAM .........................................................................52 6.1 INSTITUTIONAL CAPACITY REQUIREMENT............................................ 52 6.2 CAPACITY BUILDING PROGRAM ............................................................. 52 6.3 MONITORING AND EVALUATION OF SAFEGUARDS IMPLEMENTATION ..................................................................................... 53 7.0 BUDGET AND TIMELINE FOR ESMF IMPLEMENTATION ................53 ESMF for IIFD i i LIST OF TABLES Table 1 Indicative safeguard instruments required for the IIFD project. ...................... 8 Table 2 Assessment on applicability of the WB Safeguard Policies. ......................... 14 Table 3 World Bank environmental and social safeguards and their policy objectives. .................................................................................................. 23 Table 4 Applicable Indonesian regulations on environmental, social and land acquisition. ................................................................................................. 24 Table 5 Summary of gap analysis of the Indonesian ES regulation with the WB Safeguard Policies. ..................................................................................... 26 Table 6 TOR for FS in accordance with ESMF......................................................... 30 Table 7 Incorporating ES Safeguards into the FS. ................................................... 31 Table 8 Guideline for AMDAL/ESIAUKL-UPL,LARAP and IPP gap analysis against WB Safeguard Policies. .............................................................................. 33 Table 9 Entitlement of Project Affected Persons ...................................................... 44 Table 10 Criteria of Activity to Determine Instruments for IPP. ................................... 50 Table 11 Estimated cost for the ESMF implementation (once every 6 months). ......... 54 LIST OF FIGURES Figure 1 Arrangement between relevant stakeholders within the IIFD and other partners. ....................................................................................................... 9 Figure 2 Preparation Phase. ..................................................................................... 11 Figure 3 Flow chart showing the screening and approval process for ES components. ............................................................................................... 12 Figure 4 Transaction Phase. ..................................................................................... 19 Figure 5 Screening process for two possible types of projects to develop ToRs in the RFP............................................................................................................ 20 Figure 6 Screening for the land acquisition, indigenous people plan and action plan from the process framework........................................................................ 20 Figure 7 Process of Land Acquisition in the Preparation Stage ................................. 42 Figure 8 Process of Land Acquisition in the Implementation Stage............................ 43 ESMF for IIFD ii i LIST OF APPENDICES Appendix A1 Screening Form Appendix A2 Feasibility Study TOR Appendix A3 Land Acquisition and Resettlement Policy Framework Appendix A4 Contents of a Land Acquisition and Resettlement Action Plan (LARAP) Appendix A5 Outline for UKL/UPL and AMDAL Studies Appendix A6 EIA and EMP Requirements Appendix A7 Chance Finds Procedure (PCR Plan) Appendix A8 Matrix of Consideration for Environmental and Social Impact Appendix A9 Note on Free, Prior and Informed Consultations Appendix A10 Format of Indigenous Peoples Plan (IPP) Appendix A11 Social Assessments Appendix A12 Documentation for Public Consultation of Draft ESMF ESMF for IIFD i v LIST OF ACRONYMS AMDAL Analisis Mengenai Dampak Lingkungan ESIA Environmental and Social Impact Assessment ADB Asian Development Bank BAPPENAS State Ministry of National Development and Planning BETF Bank Executed Trust Fund BP Bank Policy BPN Badan Pertanahan Nasional BPJT Toll Road Management Body CA Corporation Agreement CAP Corrective Action Plan CMEA Coordinating Ministry of Economic Affairs CNH Critical Natural Habitats CSO Civil Society Organizations DFATD Department of Foreign Affairs and Trade Development DFAT Department of Foreign Affairs and Trade DUC Dam Under Construction EA Environmental Assessment EAAIG East Asia and Pacific Australian Aid Infrastructure for Growth EHS Environment Health and Safety EIA Environmental Impact Assessment EMP Environmental Management Plan ES Environment and Social ESIA Environmental Social Impact Assessment ESMF Environmental and Social Management Framework FS Feasibiity Study GCA Government Contracting Agency GOC Government of Canada GOI Government of Indonesia GPM Grievance Redress Mechanism GPs Global Practices IDR Indonesian Rupiah IIFD Indonesian Infrastructure Finance Development IIF Indonesia Infrastructure Finance IIGF Indonesia Infrastructure Guarantee Fund ILRC The Indonesian Legal Resource Center INDII Indonesia Infrastructure Initiative INIS Indonesia Infrastructure Support IP Indigenous Peoples IPM Integrated Pest Management IPP Indigenous Peoples Plan ESMF for IIFD v IPPF Indigenous Peoples Planning Framework ISDS Integrated Safeguards Data Sheet JICA Japan International Cooperation Agency KKPPI Inter-Department Coordination Body PIPIB Moratorium Map PPP Public Private Partnership PPP UNIT Government-Private Collaborative Unit LARAP Land Acquisition and Resettlement Action Plan LAT Land Appraisal Team LAC Land Acquisition Committee LPPSE Social Research and Development Institution MIC Middle Income Economy MOF Ministry of Finance MPA Metropolitan Priority Area MRT Mass Rapid Transport NGO Non Governmental Organization NOL Non Objective Letter OBC Outline Business Case OP Operational Procedure PCR Physical Cultural Resources PDF Project Development Facility PDO Project Development Objectives PERPRES Presidential Regulation PID Project Information Document PIP Project Implementation Plan PLN State Electricity Company PMP Pest Management Plan PPP Public Private Partnership QPO Quarter Project Reports RFP Request for Proposal RKL Environment Management Plan RPL Environment Monitoring Plan SIAP Sustainable Infrastructure Assistance Program SOE State Own Enterprise SOP Standard Operating Procedures TA Technical Assistance TOR Terms of Reference UKL-UPL Environmental Management and Monitoring Effort VGF Viability Gap Funding WB World Bank WBS World Bank Safeguards ESMF for IIFD v i ESMF for IIFD vi i EXECUTIVE SUMMARY The IIFD Project is designed to develop operational, ready-to-implement next-steps toward a robust infrastructure and PPP financing market in Indonesia. Among other things, the Project will clarify specific legal and regulatory provisions and corresponding operational policies and procedures; enhance inter- agency coordination and develop skills and capacity of national level agencies (MOF; KPPIP; Bappenas; Coordinating Ministry of Economic Affairs (CMEA) and Government Contracting Agencies (GCAs) vis-à-vis public sector and PPP financing of infrastructure; and help prepare a small number of well-structured PPP projects for market bidding. The scope of IIFD support to MOF on PPP transactions is limited specifically to facilitating FS preparation for a small number of pilot transactions, including screening and preliminary assessments by the PPP Unit, as well as supporting GCAs through transaction advisory on bringing well-structured, financially, technically, environmentally and socially viable transactions to market bidding. Transaction advisory will involve funding professional financial and legal advisors on transaction structuring, as well as technical advisors to review the preliminary technical designs developed by government. The IIFD project activities will end upon issuance of the RFP. The Project aims to be catalytic and will assist GoI in developing its capacity and in mainstreaming international best practices in PPPs – including on social and environmental impact management. The project will not support the development of detailed project designs nor investments in infrastructure. Since this IIFD project is funded by a Grant from the World Bank, its Operational Policies are applicable, as relevant, to all project activities. Thus, this ESMF provides guidance to the Ministry of Finance PPP Unit and the GCAs in applying the Government of Indonesia Law and Regulation pertaining safeguard and World Bank Safeguard Policies. Additionally the potential PPP projects considered for IIFD support will follow Perpres No 38, 2015, and as such the PPP Unit will consider up to 5 proposed eligible projects for review, in varying states or preparedness and in varying locations and situations. This ESMF lays out the procedures, roles and responsibilities for the PPP Unit and GCAs to identify, avoid and/or mitigate the social and environmental associated with PPP development in accordance with the World Bank safeguard policies and applicable Indonesian law. The ESMF sets forth and details the procedures to be followed by the PPP Unit for screening feasibility studies proposal and decide the level of social and environmental analyses based on the likely magnitude of potential impacts (according to the World Bank safeguards categorization). Generic terms of reference are presented to assist PPP Unit and GCA to assist the preparation of Terms of Reference for social and environmental assessments under the Feasibility Studies/RFP. Final terms of reference will be reviewed and approved before tendering to ensure quality and adherence to World Bank safeguard policies and Indonesian regulations. References to regulations, checklists, frameworks, and standard required content for reports, supporting documents, and rapid decision making tools with examples, are presented throughout the document and in the appendices. As a guide for to promote the adoption of best practices in infrastructure development the World Bank Safeguard Policies are listed as a reference for the PPP project developer. So are a few social frameworks, that although not applicable to the Project in itself can serve as reference for GCA when considering future PPP project development after the life of this project. This aims to promote a robust environmental and social concerns mainstreaming at planning, transaction and implementation stages. This ESMF will end upon the Project issues the RFP. This ESMF concludes with a consideration for the capacity, training and budget needs for effective implementation with the 5 PPP pilot projects. All budgets are estimates, as the costs will vary contingent on the size and scope of the proposed PPP project activity. This ESMF has been prepared by the MOF/PPP Unit. Consultation of the TORs and Draft Report were conducted by the client on December 21, 2015 and January 21, 2016 respectively. The Draft ESMF was disclosed on the client’s website on January 28, 2016. ESMF for IIFD vii i ESMF for IIFD i i 1.0 INTRODUCTION 1.1 BACKGROUND 1. Infrastructure development through the Public Private Partnership (PPP) in Indonesia has gone through a long process and has evolved into more conducive situation in responding challenges and constrains. Since the launched of the PPP and Infrastructure Summit in 2004, and establishment of the umbrella of PPP regulation (Presidential Decree No. 67/2005), PPP program has moved towards significant efforts to contribute to the development of infrastructure in Indonesia. There are several facilities that have developed, including the establishment of the Inter-Department Coordination Body (KKPPI) in 2005 and the MOF’s Risk Management Unit in 2006, establishment of the Indonesia Infrastructure Guarantee Fund (IIGF) in 2009, and the Indonesia Infrastructure Finance (IIF) facility in 2010. Those facilities are mostly target greenfield investments. To fill the gap of a non-greenfield investments, a Viability Gap Financing (VGF) was established in 2012. Recently, the government has transformed the KKPPI to be the National Committee for accelerating the Indonesia infrastructure priority projects (KPPIP) with a larger mandate for infrastructure acceleration in July 2014 including the establishment of MOF PPP Unit in January 2015. 2. The GOI realizes the importance of private participation in accelerating infrastructure development, considering the limitation of the government in funding the infrastructure needs. Based on estimation of infrastructure funding needs in 2015-2019, the government is only able to fulfill one- third of total infrastructure funding needs, which is about IDR 1,433 trillion out of IDR 4,796 trillion in total1. The remaining two-thirds is expected to come primarily from the private sector and, to a lesser extent, SOEs. These investments from the private sectors and SOEs, which can involve international funding sources, are expected to bring along additional sets of requirements, including international best practices for environmental and social impact management, to be fulfilled by the PPP projects in Indonesia. Both the public and private parties, within the PPP scheme, will need to comply not only with the Indonesian regulations on environmental and social, but also International Guidelines/Standards. 3. The Indonesian Infrastructure Finance Development (IIFD) project supported by a grant from the World Bank is designed to support the Ministry of Finance PPP unit in developing operational, ready- to-implement next-steps toward a robust infrastructure and PPP financing market in Indonesia. The Project will clarify specific legal and regulatory provisions and corresponding operational policies and procedures; enhance inter-agency coordination and develop skills and capacity of national level agencies (MOF; KPPIP; Bappenas; Coordinating Ministry of Economic Affairs (CMEA)) and Government Contracting Agencies (GCAs) vis-à-vis public sector and PPP financing of infrastructure; and help prepare a small number of well-structured, environmentally and socially sound PPP projects for market bidding. 4. The scope of IIFD support to MOF on PPP transactions is limited specifically to facilitating FS preparation for a small number of pilot transactions, including screening and preliminary assessments by the PPP Unit, as well as supporting GCAs through transaction advisory on bringing well-structured, financially, technically, environmentally and socially viable transactions to market bidding. Transaction advisory will involve funding professional financial and legal advisors on transaction structuring, as well 1 The Ministry of National Development Planning/National Development Planning Agency. Public Private Partnership Infrastructure Projects plan in Indonesia. 2015 ESMF for IIFD 1 as technical advisors to review the preliminary technical designs developed by GCA. The IIFD project activities will end upon issuance of the RFP. 5. This document presents the Environmental and Social Management Framework (ESMF) for the IIFD project. It is meant to provide guidance to the Public Private Partnership (PPP) Unit operations within the Ministry of Finance (MoF) and GCAs for the preparation of social and environmental studies and review of deliverables at the different project phases, i.e. Feasibility Studies and Transactions Advisory. This document also present the guideline for GCA to develop safeguard instruments moving forward during the implementation phase. Although the IIFD project will not finance implementation of those safeguard instruments. 1.2 OBJECTIVE AND RATIONALE of THE ESMF of IIFD 6. The objective of this ESMF is to ensure that all FS and transactions that receive the funding support as one of possible pilot programs, are compliant with the applicable social and environmental requirements of Indonesia law and to the World Bank Safeguards Policies. The requirement of meeting the World Bank’s operational policies, including safeguards, is part of the standard conditions for financing of this international organization, of which Indonesia is a member. The documents structure and scope are presented the in the next section. 1.3 SCOPE AND METHODOLOGY 1.3.1 Scope for the ESMF 7. The ESMF is prepared to identify, avoid, reduce, and mitigate the risks of the potential social and environmental impacts on the proposed PPP projects. It provides guidance for the MoF PPP unit in: screening proposals for Feasibility Studies (providing an ineligible activities that cannot be supported either because of Indonesian Legislations or World Bank Operational Policies), guidance for the preparation of Terms of Reference for social and environmental studies under the Feasibility Studies; guidance on the inclusion of social and environmental aspects into Requests for Proposal, including the Terms of Reference of detailed social and environmental assessments to be carried out after bid awards. Flowcharts in the text describe the discrete steps for the abovementioned activities and the roles of GCAs, PPP Unit and World Bank in respectively preparing, reviewing and approving project documents. 8. The ESMF was prepared in line with the World Bank’s Operational Policy (OP)/Bank Procedure (BP) 4.01 - Environmental Assessment (EA), and in accordance with Indonesian National Laws and Regulations. Any activity funded by IIFD will be implemented in reference to the principles of sustainable development, including environmental, social, cultural, and economic considerations, as already governed in prevailing laws and regulations. This ESMF adopted the Government of Indonesia’s laws and regulations to the extent that they are consistent with the World Bank Safeguard Policies (OP 4.01, OP 4.04, OP 4.36, OP 4.11, OP 4.10, OP 4.12, OP 4.37, and OP 7.50). Specific provisions have been included in this ESMF to ensure the aspect of the Bank policies that are not fully covered through Indonesian laws and regulations and addressed. 9. Project area of influence: The area likely to be affected by the Project, including all its ancillary aspects, such as power transmission corridors, pipelines, canals, tunnels, relocation and access roads, borrow and disposal areas, and construction camps, as well as unplanned developments induced by the Project (e.g., spontaneous settlement, logging, or shifting agriculture along access roads). The area ESMF for IIFD 2 of influence may include, for example, (a) the watershed within which the project is located; (b) any affected estuary and coastal zone; (c) off-site areas required for resettlement or compensatory tracts; (d) the airshed (e.g., where airborne pollution such as smoke or dust may enter or leave the area of influence; (e) migratory routes of humans, wildlife, or fish, particularly where they relate to public health, economic activities, or environmental conservation; and (f) areas used for livelihood activities (hunting, fishing, grazing, gathering, agriculture, etc.) or religious or ceremonial purposes of a customary nature. In addition, the project area of influence will also include linked project.2 10. The ESMF covers the following contents:  Executive Summary;  Introduction. This contains project background, objectives and rationale for the ESMF, and scope and methodology used to develop the ESMF;  A description of project, anticipated type/sector of investment projects, and types or activities that will be excluded from the Project support, project coordination/implementation arrangements, annual review or reporting requirements, etc.;  Environmental and Social Safeguard Screening: describing process to screen environmental and social impacts of the Project activities that include: o Ineligible activities for funding and process to screen ineligible activities; o Process to identify EA category of proposed activity; o Process to screen safeguards policies triggered; and o Process to identify specific-safeguards instruments to be prepared for each investment project especially pilot demonstration project as part of the FS package, timing of preparing these safeguard instruments; requirements for consultation and disclosure of these instruments, etc.;  Environmental and social screening to develop Request for Proposal during the Transaction Phase, which include requirements to satisfy World Bank Safeguard Policies. The guideline for RFP development will include how to prepare environmental documents (AMDAL/ESIA/UKL-UPL) and social documents (LARAP, IPP, action plan from the process framework).  A description of institutional, policies and legislative frameworks at national, local and international conventions applicable to the project. This includes World Bank Safeguard Policies and regulations applicable to the project, including the implementation problems considerations and best practice solutions.  Sections addressing the requirements of individual safeguard policies applicable to the project. This include sections addressing requirements of: o Environmental Assessment (OP/BP 4.01); 2 Linked activities, regardless of financing sources that are: (i) Directly and significantly related to the IIFD project; (ii) Necessary to achieve the objectives of the subproject; and (iii) Carried out, or planned to be carried out contemporaneously with the subproject. ESMF for IIFD 3 o Natural Habitats (OP/BP 4.04); o Forests (OP/BP 4.36); o Physical Cultural Resources (OP/BP 4.11); o Indigenous Peoples (OP/BP 4.10); o Involuntary Resettlement (OP/BP 4.12); o Safety of Dams (OP/BP 4.37); and o Projects on International Waterways OP/BP 7.50.  Guidance for incorporating environmental and social considerations into the FS study e.g. option analysis study, site selection study etc and the RFP.  Consultation plan and disclosure methods of the ESMF;  Institutional Assessment and Project Implementation Arrangements for implementing the ESMF: describe assessment of institutional capacity to manage and monitor ESMF implementation, including other agencies that have mandate for managing environmental and social concerns;  Capacity building and joint training program the institutions responsible for implementing the ESMF;  Budget for implementing the ESMF; and  Appendices. 1.3.2 Methodology 11. The ESMF was developed through the following steps and methodology:  Document review. The following documents were reviewed during the preparation of ESMF: o Project Appraisal Document for a Proposed Trust Funded Grant in the Amount of US$ 8.28 Million for the Republic of Indonesia for the Indonesia Infrastructure Finance Development (IIFD). International Bank for Reconstruction and Development. 2016; o Combined Project Information Documents/ Integrated Safeguards Data Sheet (PID/ISDS). Appraisal Stage. 04 November 2015; o World Bank Safeguard Policies and relevant Indonesian legislations; o PPP Unit Business Process. World Bank. December 2015; and o Terms of Reference. Advisory Services to help Setting up the Safeguard Framework in MOF’s PPP Unit, Indonesia Infrastructure Finance Development Project, 2015.  Discussions to develop the draft of the ESMF. Discussions were held between parties involved in the preparation of this ESMF. Parties involved in the discussions include: ESMF for IIFD 4 o The World Bank Team (Infrastructure team, Environmental and Social Safeguard Specialist, Safeguard Coordinator); o Ministry of Finance (Office of Director of Government Support and Infrastructure Financing/PPP Unit, the Directorate General for Risk Management and Financing, Ministry of Finance); and o PT Hatfield Indonesia.  Public Consultation. The ESMF has gone through twice public consultations. First public consultation was held in December 21, 2015 to obtain public’s comments on the ESMF’s TOR. Second public consultation was held in January 21, 2016 for the draft of the ESMF. ESMF for IIFD 5 2.0 IIFD PROJECT DESCRIPTION 12. The Project is designed to develop operational, ready-to-implement next-steps toward a robust infrastructure and PPP financing market in Indonesia. Among other things, the Project will clarify specific legal and regulatory provisions and corresponding operational policies and procedures; enhance inter- agency coordination and develop skills and capacity of national level agencies (MOF; KPPIP; BAPPENAS; Coordinating Ministry of Economic Affairs (CMEA)) and Government Contracting Agencies (GCAs) vis-à-vis public sector and PPP financing of infrastructure; and help prepare a small number of well-structured PPP projects for market bidding. 13. The scope of IIFD support to MOF on PPP transactions is limited specifically to facilitating FS preparation for a small number of pilot transactions, including screening and preliminary assessments by the PPP Unit, as well as supporting GCAs through transaction advisory on bringing well-structured, financially, technically, environmentally and socially viable transactions to market bidding. Transaction advisory will involve funding professional financial and legal advisors on transaction structuring, as well as technical (including social and environmental) advisors to review the preliminary technical designs developed by government. The IIFD project activities will end upon issuance of the RFP. The Project aims to be catalytic and will assist GOI in developing its capacity and in mainstreaming international best practices in PPPs – including on social and environmental impact management. The project will not support the development of detailed project designs nor investments in infrastructure. 2.1 IIFD PROJECT COMPONENTS 14. The Project has four components, i.e.: strengthening individual agencies; legal and regulatory considerations; project selection, preparation and transaction; and inter-agency coordination. 2.1.1 Component 1: Strengthening Individual Agencies 15. Component 1 of the Project concerns establishing the PPP Unit and other key entities in the PPP framework including KPPIP as fully functional, capable of assuming the technical, coordinative and knowledge responsibilities expected. This also includes support for the GCAs to produce high quality Outline Business Case (OBC) for submission to BAPPENAS, and better selection criteria resulting in more efficient investment projects as selected by BAPPENAS. The IIFD will further help GCAs make better use of the PDF, and other PPP supporting instruments run by MOF. The Component will also contribute to better capacity in government agencies involved in the selection and prioritization of PPP projects. This Component will also support the establishment of operational and business processes (incl. SOPs) as well as support capacity building on relevant subjects, e.g. economic- financial analyses, social and environmental impact management. This will include trainings, twinning arrangement and secondments of staff across concerned agencies both in central and local level as defined in the ESMF. 2.1.2 Component 2: Legal and Regulatory Considerations 16. Component 2 will contribute to improving the legal and regulatory frameworks underpinning PPPs in Indonesia, among other things, by: (i) providing advice for revisions, amendments and/or replacement legislation (s) required to improve the regulatory environment supporting PPPs in relevant Indonesian infrastructure sectors (e.g. Presidential Regulation No. 38/2015, related to sector regulations in Public Works, Transportation, Energy); and (ii) implementing the recommendations from ESMF for IIFD 6 the regulatory review on the broader infrastructure policy, linked to the national investment priority, focusing on access to long term finance resources from the national and international markets. 17. ESMF will provide general environmental and social safeguard guidance for infrastructure sectors, required sectoral international/national standards (e.g., environmental standards for energy sector, transportation, water supply, etc.). And also to eventual proposals for legal and regulatory changes (e.g., land acquisition law). 2.1.3 Component 3: Project Selection, Preparation and Transaction 18. Activities under this Component will be critical to the overall success of the Project as they directly support the speed, quality and efficiency of the PPP deal pipeline and flow, and build upon the intra-agency capacity building activities under Component 1. This Component captures the range of technical support needed to move a PPP project from concept stage through implementation, and will ensure a select set of promising pilot projects to use for a successful demonstration effect. The scope of IIFD support to MOF will specifically involve facilitating FS preparation for up to five pilot projects transactions, including screening and preliminary assessments by the PPP Unit, as well as working with GCAs on bringing well-structured, financially, technically, environmentally and socially viable transactions to market bidding. Transaction advisory will include funding professional financial and legal advisors on transaction structuring, as well as technical advisors to review the preliminary technical designs developed by GCAs. The IIFD project activities will end upon issuance of the RFP. 19. The ESMF will mainly support this Component 3 and will provide necessary guideline during the FS to ensure its compliance with the World Bank’s Safeguards Policy related to environmental, social aspects. The ESMF will also provide recommendation and guidance on how the AMDAL/ESIA/UKL-UPL/LARAP/IPP/Action plan from the process framework will be prepared, in a way to be able to meet both Indonesian standards and the World Bank Safeguards Policy. 2.1.4 Component 4: Inter-Agency Coordination 20. This Component will support, inter alia, workshops, meetings and recurrent costs, to facilitate coordination among government stakeholders directly involved in PPP development in Indonesia. Based on the detailed review of existing inter-agency / institutional arrangements and best practice for PPPs, a key activity under this Component will be to support GOI in clarifying and strengthening the roles and responsibilities of relevant agencies working on infrastructure development, and enabling better coordination. 21. The ESMF describes the roles and responsibilities for GOI stakeholders involved in PPPs related to environmental and social requirements. 2.2 INDICATIVE SAFEGUARDS INSTRUMENTS REQUIRED BY IIFD 22. IIFD containing four components as described in Section 2.1.1 to 2.1.4 requires World Bank Safeguard Policies to be applied. Indicative safeguards instruments required is presented in Table 1 below. ESMF for IIFD 7 Table 1 Indicative safeguard instruments required for the IIFD project. Indicative of Instruments Indicative to be Prepared Prior to IIFD Project Potential Environmental and Social EA Category Appraisal or During Component Implications of possible Implementation (as projects appropriate for the specific project) Component 1: These activities usually do not have potential C None Strengthening Individual adverse environmental and social Agencies implications or risks Component 2: Legal These activities usually do not have potential C ESMF and Regulatory adverse environmental and social Considerations implications or risks Component 3: Project These types of activities may have significant A or B ESMF. Selection, Preparation down-stream impacts. Each of the proposed and Transaction infrastructure investments must be screened (like in any Bank financed investment lending operations) for its potential social and environmental impacts to identify/define: (a) safeguards policies triggered; (b) EA category; (c) safeguards instruments to be prepared during preparation of engineering designs; and (d) consultation and disclosure requirements.3 Component 4: Inter- These activities usually do not have potential B or C None Agency Coordination adverse environmental and social implications or risks 2.3 INSTITUTIONAL ARRANGEMENTS OF IIFD 2.3.1 Implementing Agency 23. The Indonesia PPP unit within MOF will be the Implementing Agency for the Project. The PPP Unit is responsible for the day-to-day implementation of IIFD in a manner to achieve the IIFD PDO. The PPP Unit is also responsible for preparing all reports required by the WB for the Project. The PPP Unit will be guided by the Procurement Plan and estimated annual expenditure envelopes. 24. The WB Task Team will conduct supervision missions of the Project and the PPP Unit on a regularly scheduled basis. The PPP Unit will also submit to the WB on a regularly scheduled basis an annual work plan and budget plan describing activities throughout the year in line with the four Project Components. During the supervisions missions, the WB Task Team will approve these submitted plans and budgets. In addition, the PPP Unit will submit on a regularly scheduled basis the updated procurement plans and Quarter Project Reports (QPR) that report in a structured manner the activities 3 In the case of TA in support of feasibility studies, it may be premature to prepare a full suite of safeguard instruments by appraisal or even during implementation of the TA Project. Instead, it may be appropriate to ensure that TORs f or the studies are agreed with PPP Unit to ensure that relevant environmental and social issues are taken into account in conducting the studies in a manner that reflects the principles of Bank safeguards covered in the ESMF. ESMF for IIFD 8 and progress made by the PPP Unit, which the WB Task Team will review and discuss during the supervision missions. 25. PPP Unit within the MOF will coordinate with the GCAs for the pilot project TOR FS preparation for bidding, preparation of the Feasibility Study document, and preparation of bid document (RFP) for the pilot infrastructure projects. Relationship between PPP Unit, World Bank and the GCA and each role in this IIFD is described in Figure below: Figure 1 Arrangement between relevant stakeholders within the IIFD and other partners. World Bank: ADB’s SIAP Project PPP Unit: - Review ESMF (NOL) Training - ESMF - Review and approve: - Selecting projects ToR, FS & RFP - Review ToR and FS DFAT Australia Documents prepared by GCA (INDII, EAAIG, INIS) - Supervision - Provide Gap analysis FS/ES instrument - Review RFP/bid JICA (e.g., MPA and documents - Monitoring and reporting MRT Projects) GCAs: - Prepare ToR for FS Training before bidding process - Prepare FS - Prepare RFP/ bid documents for infrastructure development 26. Roles and responsibility of each institutions in implementing ESMF is explained as follows: (1) TOR for Feasibility Study (will be prepared by PPP Unit and will be approved by the Bank, during Preparation Phase); (2) Feasibility Study (will be prepared by GCA with the support from IIFD, during Preparation Phase, to be reviewed and approved by the Bank); (3) Gap analysis report for Pre-FS and FS (will be prepared by PPP Unit during Preparation Phase, to be reviewed by the Bank); (4) Gap analysis report for AMDAL/UKL-UPL/LARAP/IPP/Action plan from the process framework (will be prepared by PPP Unit during Transaction Phase, to be reviewed by the Bank); and (5) RFP for environmental documents (AMDAL/ESIA/UKL-UPL) and social documents (LARAP/IPP/Action plan from the process framework) (will be prepared by PPP Unit during the Transaction Phase, and reviewed and cleared by the Bank). 27. To further develop safeguards related knowledge and capacity among responsible parties at the PPP Unit and MOF for the Project, the World Bank will deliver a comprehensive safeguards training workshop to further build the staff’s knowledge and capacity to apply and comply with WB safeguard policies, in particular preparing Term of Reference for the feasibility study itself and safeguard instruments requirements for the RFP. The PPP Unit will hire a full time Environment and Social Safeguard Specialists to ensure that the FS/RFP complies with WB safeguards policies as covered in ESMF for IIFD 9 the ESMF. The World Bank will provide ongoing training on safeguards policies and management throughout the life of the Project to the PPP Unit. 2.3.2 Other Partners 28. Activities under the Project will coordinate with relevant and related work being undertaken by other donors, as well as that undertaken within the WB Group. Among external partners, IIFD activities will complement ADB’s support to the KPPIP’s secretariat operation, as well as it’s Sustainable Infrastructure Assistance Program (SIAP). IIFD activities will also coordinate with work undertaken by bilateral, including DFAT Australia’s program (through various TFs, including the Indonesia Infrastructure Initiative (INDII), East Asia and Pacific Australian Infrastructure for Growth (EAAIG) TF, and Indonesia Infrastructure Support (INIS)) that are supporting GOI to enhance infrastructure policy, planning and investment in the ports sector (TA for preparation of Makassar Port FS for PPP), and roads (TA to DG Highway of Ministry of Public Works on Performance Based framework). The Japan International Cooperation Agency (JICA) has a master program through the Metropolitan Priority Area (MPA), which include Mass Rapid Transportation (MRT), wastewater management PPPs, and some urban transport. Currently JICA is providing support to KPPIP for its revitalization, and to the PPP Unit for developing an Annuity Payment Scheme for infrastructure projects – all of which align well with IIFD. Within the WB Group, IIFD will work coordinate across Global Practices (GPs) on their respective work in energy, maritime, tourism and national infrastructure engagement areas, as well as with IFC which is offering support to KPPIP in screening 10 airports projects as PPPs. 2.4 PROJECT PHASE, ACTIVITIES, SCREENING AND APPROVAL PROCESSES of IIFD 29. The proposed IIFD project will support the preparation of feasibility studies (FS) and requests for proposals (RFP) for potential PPP projects. The Project aims to be catalytic and will assist GOI in developing its capacity and in mainstreaming international best practices in PPPs – including on social and environmental impact management. The Project will not support the development of detailed project designs nor investments in infrastructure. 30. The PPP project phases can be divided into four phases, i.e., preparation phase, transaction phase, bid award, and construction/implementation phase. IIFD will only provide support until the development of RFP during the transaction phase. 2.4.1 Preparation Phase 31. Preparation phase is the planning stage, where PPP Unit will select infrastructure project, conduct screening assessment, develop the TOR for Feasibility Study, support the GCA in the development of FS. ESMF will provide PPP Unit with a set of tools to conduct preliminary environmental and social screening, which consists of project eligibility assessment, project categorization, guideline to develop TOR FS including Environmental and Social aspect (refer to Appendix A2), and guideline to help GCA in preparing the FS. 32. PPP projects may be applied to PPP Unit in different condition, as follows:  No ES data, and no compliance material developed; and  Has completed Pre-FS/FS document and/or initial environmental and social assessment. ESMF for IIFD 1 0 33. General flow for the Preparation Phase is presented in Figure 2 below: Figure 2 Preparation Phase. GCA submit the Screening GCA mobilize FS is produced by MOF issues GCA & submitted draft TOR for Process by PPP consultant to TOR to GCA to MOF FS to PPP Unit Unit using ESMF conduct FS PPP Unit MOF submit the submit the TOR FS to WB for to WB for NOL NOL WB reviews WB reviews and and approve issues the No the final FS Objection Letter Continue to the Transaction Phase 2.4.1.1 Project Selection 34. Selection of infrastructure project supported by IIFD will be based on the level of priority defined by the MOF. Project with a high level of priority will be selected and will be channeled to PPP Unit to receive IIFD support. 35. Infrastructure PPP projects that may be supported by IIFD will involve one of the following types of sectors, as specified in Presidential Decree No. 38/2015 and No. 3/2016:  Transportation infrastructure for airport services, harbour services, and railroad facilities;  Road infrastructure (toll roads and toll bridges);  Irrigation infrastructure (ducts for raw water);  Drinking water infrastructure (supply, transmission, distribution, treatment);  Wastewater infrastructure (collection, conveyance, treatment);  Solid waste management infrastructure (transportation and disposal facilities);  Telecommunications and informatics infrastructures (telecommunication networks and e- government infrastructure);  Electricity infrastructure (generation, transmission, distribution – including geothermal); and  Oil and natural gas infrastructure (oil and natural gas transmission and distribution). 2.4.1.2 Screening/Project Categorization 36. During the project preparation phase, the PPP Unit will receive TOR for PPP project proposals from the GCA and will screen them in accordance with the ESMF, for potential social and environmental ESMF for IIFD 1 1 impacts. The Bank will review and approve the Terms of Reference and final deliverables for the Feasibility Studies to ensure that they comply with World Bank safeguard policies, objectives and requirements as covered in the ESMF. 37. GCA will revise the TOR for FS after receiving comments from the PPP Unit. In the case that the PPP project submitted by the GCA already has the FS document, PPP Unit will conduct a gap analysis of the Pre-FS/FS in accordance to this ESMF. GCA will need to address comments from the PPP Unit related to the gap analysis that has been reviewed by the Bank and will resubmit to the PPP Unit. 38. The screening and approval process can be described in the flow chart below: Figure 3 Flow chart showing the screening and approval process for ES components. Project Project Safeguard Pilot project Eligibility Categorization Policies Checking on application Screening Screening Applicability available ES from GCA (Appendix A1) (Appendix A1) Screening data (Appendix A1) Defining the No If new Project GCA conduct has no data Scope for the FS and complete available (TOR for the FS) the FS based incorporating ES TOR review Yes on the approved Safeguards and approve TOR by the WB incorporating Gap analysis of ES Safeguards existing data and If the project has recommendation the Pre-FS/FS to revise the FS incorporating ES Recommendation Safeguards for the FS review No Yes Transaction and approval Phase by the WB Project Eligibility Screening 39. Assessment on project eligibility will occur during the Preparation Phase. When GCA submits the project application, PPP Unit will conduct the first screening on its eligibility. The Exclusion List is presented in Appendix A1 and is used to screen project eligibility. 40. PPP Unit will review project application submitted by the GCA. A form presented in Appendix A1 will be used to assess if the proposed project is eligible to receive support from the IIFD. If the project is concluded as eligible, PPP Unit will categorize the proposed project based on general assessment of its impact to the environment. Project Categorization Screening 41. Once the project is deemed eligible, PPP Unit continues the screening to classify the PPP project in to a relevant category and therefore determine the level of likely impacts, in accordance with ESMF for IIFD 1 2 this ESMF. In the application letter, GCA will identify and provide a self-preliminary assessment of potential environmental and social issues. Further, GCA and PPP Unit determine the category to be applied for the project. 42. The World Bank system classifies projects into one of four categories, depending on the type, location, sensitivity, and scale of the project and the nature and magnitude of its potential environmental impacts. Project categorization is outlined below:  Category A: A proposed project is classified as Category A if it is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. Project Category A will require a detailed EIA document;  Category B: A proposed project is classified as Category B if the potential adverse environmental impacts on human populations or environmentally important areas—including wetlands, forests, grasslands, and other natural habitats – are less adverse than those of Category A projects. These impacts are site‐specific; few if any of them are irreversible; and in most cases mitigation measures can be designed more readily than for Category A projects. Project Category B, will require ESIA (Environmental and Social Impact Assessment), EMP (Environmental Management Plan)and/or social assessment.  Category C: A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Project Category C may require a simplified EMP or project’s screening documentation; and  Category FI: A proposed project is classified as Category FI if it involves investment of Bank funds through a financial intermediary, in sub projects that may result in adverse environmental impacts. The actual instruments required by the project will be determined by the nature scale and scope of the project. 43. PPP Unit will assess the proposed project based on the above category and will provide feedback to the GCA should there any additional information required to categorize project. In addition to the World Bank project categorization, PPP Unit will also refers to the Indonesian regulation, i.e., Regulation of the Ministry of Environment and Forestry No. 5/2012 concerning Activities Requiring Environmental Impact Assessment. A form that can be used by PPP Unit to categorize project is presented in Appendix A1. Regulation from the Government of Indonesia will define type of environmental assessment required by the project and to obtain Environmental Permit from the Government Authority. If there are discrepancies between Indonesian law and WB Policies on project category definition, the World Bank Standard will be applied. Safeguard Policies Requirement Assessment 44. The World Bank’s Safeguard Policies are a cornerstone of its support to sustainable development. The objective of these policies is to prevent and mitigate undue harm to people and their environment in the development process. These policies provide guidelines for Bank and the PPP Unit in the identification, preparation, and implementation of infrastructure projects. 45. General assessment on applicability of the World Bank Safeguard Policies is presented in table below. A form that provides more detail assessment on which Safeguard Policies will apply is presented in Appendix A1. ESMF for IIFD 1 3 Table 2 Assessment on applicability of the WB Safeguard Policies. No. Safeguard Policies Triggered? Explanation (Optional) 1. Environmental Yes The Project will finance preparation of up to five feasibility studies Assessment OP/BP /RFP/bidding documents for pilot demonstration projects to 4.01 demonstrate effectiveness of the PPP process being established with the TA. The activities that involve preparation of Feasibility Study/RFP/bidding documents for up to five pilot demonstration projects may generate adverse environmental and social impacts downstream when these projects are implemented after the life of the TA. Therefore, the TA project triggers OP/BP 4.01 Environmental Assessment and the safeguards policies below. PPP Unit will screen each pilot project, based on the guidelines of this ESMF for environment and social impacts. 2. Natural Habitats Yes Details of the pilot demonstration projects can only be identified OP/BP 4.04 during project implementation. Some of pilot demonstration PPP projects may eventually affect natural habitats and. None of the pilots will take place in critical natural habitats since they are likely to be large-scale infrastructure projects with significant and irreversible impacts. FS will include provision to address the objectives of OP 4.04. 3. Forests OP/BP 4.36 Yes Details of pilot projects can only be identified during project implementation stage. Some of pilot projects may take place in or in close proximity to forest areas or their buffer zones since 70% of Indonesia’s land area lies within the Forest Estate. No pilot will be selected that would take place within critical and/or protected forest areas. FS will include provision to address the objectives of OP 4.36 4. Pest Management No Not applicable. OP 4.09 5. Physical Cultural Yes Details of the pilot demonstration projects will only be determined Resources OP/BP during Project implementation. Some of pilot projects may affect 4.11 physical cultural resources. The environmental screening procedures included in the project’s ESMF ensure the pilot project s will not adversely affects sites having archeological, paleontological, historical, religious or unique natural values. FS will include provision for chance finds procedures and to address the objectives of OP 4.11 6. Indigenous Peoples Yes It is expected that the infrastructure pilot demonstration projects will OP/BP 4.10 be geographically distributed across the country. Therefore, there may Indigenous Peoples presence in the project area and the FS will include provision to address the objectives of OP 4.10. 7. Involuntary Yes Most of the infrastructure projects to be proposed for PPP Resettlement OP/BP demonstration are likely to require land acquisition and/or 4.12 resettlement and thus OP/BP 4.12 is triggered. FS will include provision to address the objectives of OP 4.12 8. Safety of Dams Yes The pilot projects may involve construction or rehabilitation of a dam OP/BP 4.37 or rely on the performance of an existing dam or dam under construction. This will only be determined during project implementation when the pilots are selected. However, the Project as a whole is setting the stage for infrastructure investments that may include the energy generation, transmission and distribution. As such, this OP is triggered, however the screening for each pilot ESMF for IIFD 1 4 No. Safeguard Policies Triggered? Explanation (Optional) project will determine whether indeed triggered of this OP. FS will include provision to address the objectives of OP 4.37 9. Projects on Yes The pilot projects may involve construction or rehabilitation of International infrastructure construction on international waterways. This will only Waterways OP/BP be determined during project implementation when the pilots are 7.50 selected. As such, this OP is triggered, however the screening for each pilot project will determine whether indeed triggered of this OP. FS will include provision to address the objectives of OP 7.50. 10. Projects in Disputed No Not applicable. Areas OP/BP 7.60 The result of this assessment will be used to develop ToRs for FS. In addition, the ToRs will address the gaps identified in the gap analysis below. 2.4.1.3 Gap Analysis for Pre-FS/FS Against the ESMF 46. Gap analyses typically involve the following three stages: (1) defining objectives of a desired state; (2) analyzing the current state from Pre-FS/FS document; and (3) identify means for bridging the gaps between the two (the existing document against the ESMF). This gap analysis will focus on evaluating the environmental and social documents that will be prepared by PPP Unit against the ESMF. During the Preparation Phase, gap analysis will only be conducted for the Pre-FS and FS (if any) documents. 47. Gap analysis for Pre-FS and FS during Preparation Phase will look into the following components (Note: within all of these components, all World Bank Safeguard Policies that are triggered will be applied):  Project location map showing local and regional context. It is important to understand where the proposed project is located and to see if there are sensitive areas around project location. Project location within the local spatial plan is also important to be assessed. If map is not available, the Pre-FS or FS should describe the spatial context of the proposed project location;  Availability of environmental and social baseline data. Defining environmental and social feasibility will need adequate baseline data. Initial baseline data may come from secondary sources which is accepted during the Pre-FS or FS. Depending on the type of project and location, environmental baseline data may consists of: physical and chemical data (water quality, air quality and noise, soil quality, climate), biological data (terrestrial and aquatic flora and fauna), and socio economic data (demography, community livelihood, cultural sites);  Environmental and social impact and risks assessment of project towards environmental and social components. It is important to understand the approach and methods used to define environmental and social feasibility. The project may use the simple matrix to assess project impacts and risks, or descriptive method based on the project nature and baseline condition; and  Recommendation for future impact assessment. The Pre-FS or FS ideally will recommend how the future impact assessment will be conducted, considering specific issues identified ESMF for IIFD 1 5 during the Pre-FS or FS. This indicates that conclusion on environmental and social feasibility is subject to further assessment in more detail. 2.4.1.4 Guidance to Prepare Terms of Reference of Feasibility Studies Scope for the Feasibility Studies TOR 48. The scope of work for the FS TOR, apart from the technical and financial analysis of the PPP Project, should include an assessment of key ES aspects, which include the following (specific scope of works for several infrastructure sectors are provided as an Appendix A2 to this ESMF):  Review of ES and land acquisition regulatory and permitting requirements that are applicable to the PPP Project;  Assessment of project location and any recommendations in relation to National and/or Regional Development in the context of: o Alignment with the National Policy and Strategic plan as indicated by the Indicative Map for New Permit Moratorium (Peta Indikatif Penundaan Izin Baru - PIPIB) or Moratorium Map; o Alignment with the National and/or Regional Spatial Plan(s); o Assessment on whether the project location is located on or goes through government protected/conservation areas; and o Sub-projects with significant ancillary4 and related activities will be considered in this project.  Initial environmental permitting plan on schedule, estimated cost and party responsible for developing the required environmental document and obtaining the environmental permit;  Preliminary assessment and recommended mitigation measures on potential environmental and social impacts of the PPP Project based on recent and available data of the baseline conditions. The mitigation measures may include development of management plans or other studies. The preliminary assessment also includes the estimated cost(s) for the mitigation measures. The potential ES impacts may include impacts or changes to the following, as applicable: o Air quality and noise; o Water quality and quantity (surface water, groundwater and seawater); o Soil quality; o Hydrology or Oceanography; o Biodiversity (terrestrial and aquatic flora and fauna) and natural habitats; o Traffic conditions; 4 Ancillary facilities are facilities that are necessary to support the functioning of a subproject, regardless of financing sources. ESMF for IIFD 1 6 o Occupational and Community Health and Safety; o Socio-economic conditions; o Land ownership and land use; o Indigenous peoples; and o Cultural heritage sites.  Initial desktop study on stakeholder mapping for the PPP project to identify all stakeholders, their level of interest and authority over the project.  Initial desktop study on land acquisition, which include: o Approximately how many people using the sites require either physical and/or economic relocation? o Assessment of any land acquisition document or activity which may have already been executed and identification of potential risks and mitigation measures including any of the land in question subject to any disputed ownership or jurisdiction.  Initial desktop study to identify where vulnerable group and indigenous peoples are present in, or have collective attachment to, the project area. The study should cover: o Vulnerable groups typically describe economically, socially, or culturally marginalized people. Vulnerable people may be indigenous peoples, ethnic or religious minorities, women, youth, the elderly, and the handicapped. Vulnerable people may be land users without formal rights or squatters. o Scoping should identify any groups who might be differentially affected as a result of distinct cultural or socio-economic characteristics that make them particularly vulnerable. o Scoping should confirm the presence of indigenous peoples in the project area of influence and whether the World Bank safeguard policy for Indigenous People OP4.10 is triggered5. o An Indigenous Peoples Plan is normally required where indigenous peoples are found in the area of influence of a project. The World Bank, Asian Development Bank, and other project finance institutions abiding by the Equator Principles or IFC Performance Standards provide specific guidance on the identification of indigenous people and preparation of development plans.  Initial desktop study related to cultural property. This will include assessment on whether project will affect sites, structures, or resources having archaeological, historical, religious, spiritual or cultural value. 5 Guidance on management of cultural resources follows the World Bank Safeguard Policies (OP/BP 4.11 on Physical and Cultural Resources) ESMF for IIFD 1 7 Guidelines to Prepare the Methodology of the Feasibility Study 49. The general approach to the methodology for the preliminary ES assessment is performing a desktop study on recent and available data that is sourced from reliable and trustworthy sources such as other scientific studies and literatures, and meetings and discussions with experts. When secondary data is not available, reasonable efforts should be made to collect primary data from the field for the assessment. The field surveys should be designed to meet the purpose of the preliminary ES assessment and do not substitute baseline surveys required for a full environmental impact assessment (i.e. AMDAL or UKL-UPL). 2.4.1.5 The Expected Content of the Feasibility of Studies 50. The expected output of the ES assessment of the PPP project is a written section of the FS report, which includes the following:  Review of GOI legislation and WB safeguard policies applicable to the PPP Project and identification of required permits or licenses and critical issues on environment and social that will need to have special attention in the FS;  Review of project location in context of National and Regional Spatial Plans and Protected Areas, any recommendations for obtaining land clearance;  Environmental Permitting Plan which describes the cost, time and resources for developing the AMDAL/ESIA/UKL-UPL and obtaining the environmental permit for the PPP Project;  ES assessment and mitigation measures which may include recommendations for additional studies, apart from the AMDAL/ESIA/UKL-UPL. Mitigation measures should include an estimation of the costs;  Summary of stakeholder mapping including description of their level of interest and authority on the PPP Project;  Types of property cultural resources affect from the project and how to mitigate it with consider to local wisdom and national policy.  Assessment on land acquisition, which includes extension of the land for the proposed project, potential socio economy impact because of land acquisition, identification of land ownership and their evidence, institutional analysis related to land acquisition and resettlement process, aspiration or voice of the people when their assets affect from the project and any safeguard instrument requirements for land acquisition and resettlement including proposed action plans (LARAP) and estimated cost; and  Assessment on the presence of indigenous peoples and potential impact (positive adverse) and estimated cost to prepare social assessment and IPP. 2.4.2 Transaction Phase 51. Following the Non Objective Letter (NOL) from the Bank on the Feasibility Study document, the GCA will submit the RFP for potential PPP project. The process is shown in Figure below. ESMF for IIFD 1 8 Figure 4 Transaction Phase. From the Advisory is Bid Document Bid Bid Document Preparation Phase (RFP) reviewed Document is mobilized (RFP) is developed and approved submitted by the Bank GCA submit the - Financial Advisor - FS and Financial Continue to application for - Legal Advisor Model Bid Award PPP project RFP/Bid - Technical - Project Structure Phase support Document Advisor - Basic Design - Environmental is issued - Env. Specialist - Social and Social PPP Unit Review Specialist Instruments incorporating the required (refer to ESMF Section 3.1.4 Paragraph 75) WB Review and approval for the SCOPE FOR IIFD IN THE TRANSACTION next phase PHASE Guarantee IIGF Guarantee Guarantee Guarantee Application Process Approval Term Sheet Package Process Financing IIF Financing Financing Financing Application Process Approval Term Sheet Package Process 52. The Project (IIFD) aims to be catalytic and will assist PPP Unit in developing its capacity and in mainstreaming international best practices in PPPs – including on social and environmental impact management. The project will not support the development of detailed project designs nor investments in infrastructure. 53. The goal of the Transaction process is to prepare the bid document for investor to participate into the bid process. ESMF provides a guidance to ensure incorporation of environmental and social standards into the Bid Package. Environmental and social advisor within the PPP Unit will help in defining requirements to comply with the ESMF into the Bid Package. 54. The RFP for the PPP transaction will be submitted by MOF to the World Bank for review and approval before the issuance to the bidders. 55. As can be seen in Figure 5, PPP project with the FS approved by the Bank will continue to the Transaction Phase. Information on screening results (project eligibility, project categorization) will not change in the Transaction Phase. The advisory team at the PPP Unit will conduct a screening assessment, which will focus on the scope for the new environmental documents (AMDAL/ESIA/UKL- UPL, Physical Cultural Resources Management Plan) and social documents (LARAP, IPP, action plan from the process framework), or revision of the existing environmental and social documents. Screening process is described in Figure 6. ESMF for IIFD 1 9 Figure 5 Screening process for two possible types of projects to develop ToRs in the RFP. FS is completed and approved Screening to: by World Bank  Define the scope for the ESIA following Screening the WB Safeguard report that 1. Project has completed  Consistencies of the will be used AMDAL/UKL-UPL existing AMDAL and to develop the new FS; RFP.  Assess applicable 2. Project has not started WB Safeguard AMDAL/UKL-UPL Policies 56. Screening and approval process related to social aspect (land acquisition, indigenous people and action plan from the process framework) during transaction phase is presented in the flow chart below. This screening is conducted to assess consistencies from the new FS approved by WB (in the Preparation Phase) and the existing LARAP/IPP/action plan from the process framework (if project has had the LARAP/IPP/action plan from the process framework) and to develop scope for the LARAP, indigenous people and action plan from the process framework during the implementation phase. Figure 6 Screening for the land acquisition, indigenous people plan and action plan from the process framework. Screening The New FS Approved by WB Assess consistencies between the new FS and existing LARAP/IPP Inputs for RFP during 1. Project has had the transaction and the LARAP & IPs will be used during Develop scope for implementation LARAP and IPP 2. Project has not following ESMF had LARAP nor IPs 57. As presented in Figure 5 &6, screening process on ES in the Transaction Phase will have the following processes (the end goal during the Transaction Phase will be the RFP for the tender process):  Project with FS approved by the Bank and has not had AMDAL/UKL-UPL/LARAP/IPP/action plan from the process framework. For this type of project, the Environmental and Social Advisor will extract information from the FS document and will define the following requirements: o Scope for the ESIA and AMDAL/UKL-UPL/LARAP/IPP/action plan from the process framework to be included into the RFP package.  Project with FS approved by the Bank and has had the AMDAL/UKL-UPL/LARAP/IPP/action plan from the process framework approved by respective government authority. For this type of project, the Environmental and Social Advisor will conduct and define the following activities: o Conduct gap analysis for the AMDAL/UKL-UPL/LARAP/IPP/action plan from the process framework document against the ESMF; ESMF for IIFD 2 0 o Develop scope for improvement of AMDAL/UKL-UPL/LARAP/IPP/action plan from the process framework document and development them following this ESMF to be included into the RFP for PPP project tender package. 2.4.2.1 AMDAL/UKL-UPL/LARAP/IPP/action plan from the process framework Gap Analysis 58. Gap analyses typically involve the following three stages: (1) defining objectives of a desired state; (2) analyzing the current state; and (3) identify means for bridging the gaps between the proposed project with this ESMF. The gap analysis should focus on evaluating the environmental and social documents that have been made available against ESMF. 59. The Environmental and Social Advisor will review available AMDAL documents (consists of TOR ANDAL, ANDAL, RKL and RPL) or UKL-UPL or LARAP/IPP/action plan from the process framework against this ESMF. Four components that need to be reviewed include:  Overall AMDAL/UKL-UPL/LARAP/IPP/action plan from the process framework (study timeline, public consultation, consistencies, implementation);  Baseline data (completeness of baseline data, quality of data) and additional studies, if necessary;  Impact assessment process (scoping study, impact identification and evaluation); and  Environmental and social/land acquisition management (action plans) and monitoring plan. 60. Based on the result of gap analysis, recommendation on improvement (AMDAL revision or Addendum of AMDAL, as needed) or revision on UKL-UPL and LARAP/IPP/action plan from the process framework will be developed by the Environmental and Social Advisor and will be part of the RFP package. 2.4.2.2 Other Environmental Studies 61. Other environmental studies are needed in the case that the proposed project triggered OP 4.04, OP 4.11, and OP 4.36.  Biodiversity Study and Sensitive Habitat Mapping. This study will apply if the project is located in greenfield which has biodiversity richness and important habitat for flora and fauna, and habitat area that has sensitive physical and cultural resources. This study will be required to comply with OP 4.04 OP 4.11, and OP 4.36. 2.4.3 Bid Award Phase 62. IIFD will not provide support on PPP project development nor the investment. On the Bid Award phase, ESMF will provide guideline for the PPP Unit to evaluate and select the winning bidder. Evaluation of proposal submitted by bidders related to environmental and social requirement will be focused on inclusion of environmental and social assessment following the ESMF and capacity of the bidder to implement those WB Safeguard policy requirements and national regulations Simple process showing Bid Award phase is presented in Figure 7 below. Figure 7 Bid Award Phase ESMF for IIFD 2 1 From the Evaluation and Continue to Transaction Selection of Bid Award Implementation Phase Winning Bidder Phase 63. A quality based proposal selection is advised for the PPP Unit during evaluation to define the winning bidders. PPP Unit may develop a checklist to ensure:  It meets the RFP requirements on the environmental and social component;  It includes assurance to use the World Bank Safeguard Policies as the main reference for ES in addition to the Indonesian standards/regulations; and  It shows adequate capacity of the investor to implement WB Safeguard Policies and national legislation shows experts who have the necessary certificate of competence, and shows considerable experience in using the ESMF for infrastructure projects. 2.4.4 Implementation Phase 64. IIFD will not support this Phase. Support from IIFD ends at the issuance of the RFP. Guidance on this ESMF on the Implementation Phase is meant to provide a complete understanding of project phases and how outputs from the Preparation and Transaction Phase will be able to foresee the requirement for the Implementation Phase. Similar to the Bid Award Phase, ESMF will provide guideline on how the environmental documents (AMDAL/ESIA/UKL-UPL and LARAP studies need to be implemented in accordance with the World Bank Safeguard Policies. In the Implementation Phase, the PPP Unit will have the role to supervise the project in achieving Financial Closure. The Implementation Phase is presented in Figure 8 below. Figure 8 Construction/Implementation Phase Development of Environmental and Financial Close From the Bid Social Impact Project Implementation/ Award Phase Assessment Construction Preparation of LARAP and Implementation of Project Monitoring and Land Acquisition Evaluation Process 65. Guidance on how the environmental documents (AMDAL/ESIA/UKL-UPL) and social documents (LARAP, IPP) should be developed in accordance to this ESMF is described in Section 4.0 Environmental and Social Documents Reference. Guideline for the development of environmental documents (AMDAL/ESIA/UKL-UPL, PCR Plan) and social documents (LARAP, IPP) is presented in Appendix A4 – Appendix A11. ESMF for IIFD 2 2 3.0 POLICIES AND LEGISLATIVE FRAMEWORK 3.1 THE WORLD BANK SAFEGUARD POLICIES 66. A completed list of World Bank Safeguard Policies, which become the main reference for this IIFD project, is listed in the table below: Table 3 World Bank environmental and social safeguards and their policy objectives. No. OP/BP Safeguard Policy Objectives 1. 4.01 Environmental Help ensure the environmental and social soundness and Assessment sustainability of investment projects. Support integration of environmental and social aspects of projects in the decision-making process. 2. 4.04 Natural Habitats Promote environmentally sustainable development by supporting the protection, conservation, maintenance, and rehabilitation of natural habitats and their functions. 3. 4.09 Pest Minimize and manage the environmental and health risks associated Management with pesticide use and promote and support safe, effective, and environmentally sound pest management. 4. 4.11 Physical Assist in preserving PCR and in avoiding their destruction or damage. Cultural PCR includes resources of archeological, paleontological, historical, Resources architectural, religious (including graveyards and burial sites), aesthetic, or other cultural significance. 5. 4.12 Involuntary Avoid or minimize involuntary resettlement and, where this is not Resettlement feasible, assist displaced persons in improving or restoring their livelihoods and standards of living in real terms relative to pre- displacement levels or to levels prevailing prior to the beginning of project, whichever is higher. 6. 4.10 Indigenous Design and implement projects in a way that fosters full respect for Peoples indigenous peoples’ dignity, human rights, and cultural uniqueness and so that they (1) receive culturally compatible social and economic benefits, and (2) do not suffer adverse effects during the development process. 7. 4.36 Forests Realize the potential of forests to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development, and protect the vital local and global environmental services and values of forests. 8. 4.37 Safety of Dam Ensure quality and safety in the design and construction of new dams and the rehabilitation of existing dams, and in carrying out activities that may be affected by an existing dam. 9. 7.50 Projects on Ensure that the international aspects of a project on an international International waterway are dealt with at the earliest possible opportunity and that Waterways riparian are notified of the proposed project and its details. 10. 7.60 Projects in Ensure that other claimants to the disputed area have no objection to Disputed Areas the project, or that the special circumstances of the case warrant the Bank’s support of the project notwithstanding any objection or lack of approval by the other claimants. ESMF for IIFD 2 3 67. As already described in Section 3.3, screening on the applicability of these WB Safeguard Operational Policies will be conducted as part of the screening process, for project application submitted by GCA. It is important for GCA to understand these requirements and therefore, PPP Unit needs to inform GCA on ESMF procedure. PPP Unit will review the letter of application from GCA and screen potential safeguard issues, and advise the GCA regarding the nature and content of Safeguards documents and measures to be prepared. 3.2 INDONESIAN REGULATIONS 68. Beside the WB Safeguard Policies, PPP Unit also refer to the Indonesian regulations on environmental and social, as well as on land acquisition for pilot projects. The following lists the key GOI legislations related to ES and land acquisition aspects: Table 4 Applicable Indonesian regulations on environmental, social and land acquisition. No. Regulations Theme and General Objective 1. Law No. 32 Year 2009 Environmental Protection and Environmental Management. The purpose of this Law is to create an environmentally sustainable development through means of an environmental planning policy, and the rational exploitation, development, maintenance, restoration, supervision and control of the environment. Environmental protection and management shall be planned through the following phases: environmental inventorying to obtain data and information on natural resources; stipulation of eco-regions; and the formulation of environmental protection and management plans. 2. Law No. 5 Year 1960 Agrarian Basic Principles. This Law defines the fundamental types of rights that may be held by private individuals and entity. This Law describes the role of the state with regard to its direct use of land as well as its regulation of private rights and private uses of land. This Law also states that Indonesian’s agrarian law is “adat” law, or Indonesia customary law, as long as it does not conflict with national interest or other regulations set out in this Law. 3. Law No. 2 Year 2012 Land Acquisition for the Development of Facilities for Public Use. This Law substantially accelerates the land acquisition process for development in the public interest. It sets clearer mechanism for the acquisition of civilian land to facilitate the development of new infrastructure projects. 4. Government Regulation Environmental Permit. The Environmental Permit Regulation No. 27/2012 No. 27/2012 requires that application for environmental permit shall be accompanied by environmental assessment documents (AMDAL and UKL/UPL), business legal documents, and business profile document. Under this regulation, project owners need to apply an environmental permit to the appropriate government authority before project implementation. 5. Government Regulation Water Quality Management and Control of Water Pollution. No. 82 Year 2001 This regulation is designed to control management of water quality and control over water pollution in an integrated manner using the ecosystem approach. The integration means the control is applied to the planning, implementation, supervision, and evaluation phase. ESMF for IIFD 2 4 No. Regulations Theme and General Objective 6. Government Regulation Control of Air Pollution. The targets of control over air No. 41 Year 1999 pollution are: (a) guaranteeing the safety, conservation of environmental and public services function; (b) realizing public behavior aware of the environment so as to achieve harmony, suitability and equilibrium between human and environment; (c) controlling the expectation of resources wisely; and (d) controlling sources of pollutant so that the quality of air meets the medical requirements for human and other creatures. 7. Government Regulation Hazardous Waste Management. In general, the Regulation No. 101 Year 2014 regulates the management and disposal procedures for toxic and hazardous waste substances (“hazardous waste”), covering: (a) Method of identifying, reducing, storing, collecting, transporting, utilizing, processing, and hoarding hazardous wastes; (b) Procedures for dumping hazardous wastes into the open sea or land; and (c) Risk mitigation and emergency. 8. Minister of the Types of Business and/or Activities that are Mandatory to Environment Regulation have Environmental Impact Assessment (AMDAL). This No. 05 Year 2012 Regulation lists activities in different sectors and specifies the limit of business scale that will trigger the activities in obtaining AMDAL (full EIA) study. Activities that are not listed in this regulation mean it will require an UKL-UPL study (small scale of EIA). This Regulation also provide a screening process to evaluate activities that are not listed/not specified in the Regulation, to decide if such activities will require AMDAL or UKL-UPL. 9. Presidential Regulation Implementation of Land Acquisition for the Development of No. 71 Year 2012 Facilities for Public Use. This Presidential Regulation has Presidential Regulation been changed three times, until the latest version of No. No. 40 Year 2014 30/2015. This new Regulation has facilitated more timely funding for land acquisition. Under the new law, private Presidential Regulation investors can provide funds at an early stage, confident that No. 99 Year 2014 these funds will either be refunded directly or through revenue Presidential Regulation arrangements as the project proceeds. This contrasts with No. 30 Year 2015 previous version whereby land acquisition had to wait for disbursement of the state budget, which is often limited and subject to a long budgeting cycle. In the Perpres No. 30/2015, land acquisition for land less than 5 hectares, project proponent can purchase land directly to the land owners. 10. Law No. 41 on Forestry Procedures to Settle Land Ownership Conflict in Forest Area (plus Constitutional Court Decision No. 35/PUU- X/2012 11. MOHA Regulation No. Guidelines on the Recognition and Protection of MHA 52/2014 12. Ministerial Regulation of (adjustment of Ministerial Regulation No. P.44/2012) on the MOH No. P.62/2013 Establishment of Forest Area 13. Regulation of the Minister Procedures to Establish the Land Communal rights on the MHA of Land Agency and Land and Community Living in the Special Area Spatial development No. 9/2015 14. Law No. 18/2013 Prevention and Alleviation of Deforestation (UUP3H). ESMF for IIFD 2 5 No. Regulations Theme and General Objective 15. Regulation of Ministry of Local Communities Empowerment Through Forest Partnership Forestry No. = Process Framework stipulated in OP 4.12. Empowerment is P.39/Menhut-II/2013 effort to enhance local communities' capability and autonomy in order to gain benefits from forest resources in an optimal and equitable way through Forest Partnership in order to increase the welfare of local communities. 69. These Indonesian regulations are important to define requirements during the Transaction Phase (preparing the RFP for bidding process) and to ensure that, besides meeting the World Bank Safeguard Policies, the project will also comply with Indonesian standards/regulations. PPP Unit needs to understand well about those regulations and whenever applicable, those will become requirements to be included into the RFP. 3.3 GAP ANALYSIS AND GAP FILLING BY ESMF 70. Considering that two main sources of regulation will be used as references related to environmental and social, a gap analysis is required to ensure that PPP Unit understands the gap and has developed mitigation plan to fill the gap. The goal is that all environmental and social documents prepared during the Preparation Phase and Transaction Phase will meet those two main sources, i.e., the World Bank Safeguard and the Indonesian regulations. Table 5 Summary of gap analysis of the Indonesian ES regulation with the WB Safeguard Policies. World Bank GAPS ESMF Roles Safeguard OP/BP 4.01 - Some components are not being assessed in a - ESMF provide guideline on Environmental comprehensive manner under the AMDAL/UKL- how to conduct gap analysis of Assessment UPL. These components include labor and AMDAL and UKL-UPL against working conditions, community health and safety, the WB Safeguard Policies indigenous peoples and cultural heritage related to - ESMF also require an EA/ESIA the project. document to be prepared, in - Furthermore, appropriate and documented addition to the AMDAL, planning and mitigation programs for each following the WB Safeguard environmental and social component under review requirement by the AMDAL is generally limited and may not - EMSF also require gap sufficiently address the EA requirements. analysis for AMDAL is - Specifically, community grievance mechanisms conducted to see the existence and protocols are rarely addressed in the AMDAL of such grievance mechanism, and UKL-UPLs or within project planning and especially related to land implementation. acquisition process OP/BP 4.04 - The AMDAL and UKL-UPL documents list the flora - ESMF has required that OP Natural Habitats and fauna species found at the Project area of 4.04 and OP 4.36 are used influence, but only limited or no information on during gap analysis of AMDAL natural and/or critical habitats. document and has specified OP/BP 4.36 - There is clear directives from the government on the requirement of this OP for Forests protected areas location and status. Projects EA or ESIA study. located in protected areas automatically require - ESMF has also stated that AMDAL. finding from the gap analysis - There seems to be ambiguity in the national will become an input for the legislation in recognizing ownership of IP Forests, ESMF for IIFD 2 6 World Bank GAPS ESMF Roles Safeguard stating that Indigenous Peoples' Forests are State RFP preparation for the bid Forests located on Indigenous Peoples Land. process. OP/BP 4.09 - In general, the institutional capacity for supervision - This safeguard is not Pest and enforcement of pesticide use in Indonesia is applicable for infrastructure Management considered weak. The regulations do not specify project receiving IIFD support the requirements for developing and implementing a Pest Management Plan at the project level. OP/BP 4.11 - In general, AMDAL and UKL-UPLs rarely assess - ESMF specifies that physical Physical impacts on physical cultural heritage and lacks the cultural resources need to be Cultural planning and program required to conserve the collected during ES baseline Resources resources. study, as part of the - Projects rarely develop chance find protocols that AMDAL/EA studies addresses the possibility and management of - Gap analysis on the AMDAL finding a cultural site or object inside a project against the WB Safeguard area. Policies will be used to prepare - Physical cultural heritage aspects of a project are the RFP for bid process. rarely discussed in public consultations, no disclosure mechanism. OP/BP 4.10 - There is no specific Indonesian laws that regulate - ESMF has included the IP Indigenous to indigenous peoples (IPs), but recognition of the desktop study in the TOR for Peoples existence of IPs vary from one sector to the other FS sectors as well as other forms of recognition of IPs - ESMF has also mentioned IP by governments. In addition there are also in several places, including international agreements that have been ratified by requirement to conduct gap Indonesia, and implemented in the legislation and analysis, requirement as an also discourses at national level regarding the additional study to be recognition of indigenous peoples. conducted as needed, and inclusion of this component into the FS document, RFP, and included into the guideline for IPPF and IPP. OP/BP 4.12 - Legislations on land acquisition are primarily - ESMF has included screening Involuntary focussed on land obtained for public process for land acquisition Resettlement developments. during the Preparation phase - Indirect impacts are not covered in the land - ESMF also includes the acquisition law LARAP (refer to LARPF) as an - Related activities are not covered additional study to be - Host communities are not explicitly covered in the conducted by the winning GOI regulation bidder. - No specific separation by vulnerability or by - Gaps will be address in gender AMDAL/UKL-UPL and - Impact mitigation not elaborated LARFP/LARAP - The LARAP required information on the vulnerable groups (women very poor, disable, etc.) - The LARPF specified that licensed appraisers compensation criteria include among others, assistance and livelihood - Requirement to prepare a LARAP when subprojects ESMF for IIFD 2 7 World Bank GAPS ESMF Roles Safeguard involves involuntary land acquisition and resettlement - LARPF provides options for compensation - LARPF provides requirements for compensation options, and licensed appraisers assess physical assets, cost and loss of non- physical assets and premium - IPPF specifies that if a subprojects needs to acquire land, LARPF applies. - A process framework (similar with Forest Partnership in Indonesian Legislation) covered in the ESMF and is prepared when Bank- supported projects may cause restrictions in access to natural resources in legally designated parks and protected areaswhen the project causes restricted area. OP/BP 4.37 - The impacts to a project located downstream of a - ESMF has mentioned dam Safety of Dams dam may not be assessed appropriately in the safety as one component to be AMDAL and UKL-UPL documents. looked at during gap analysis - Agreements in dam maintenance, emergency - OP/BP 4.37 also mentioned as response and information disclosure between dam one of the safeguard that need owner and the project located downstream of the to be applied whenever dam is uncommon in Indonesia. applicable. OP/BP 7.50 - On the project located on International Waterways, - ESMF has refer to this OP Projects on AMDAL already address sufficiently to satisfy 7.50 in the development of International Indonesian regulation and the AMDAL Committee TOR FS during the Preparation Waterways at the Central Government (Project that is located Phase in strategic area/in border with International - ESMF also address this OP in boundary, or across two provinces will be reviewed the gap analysis and need to at the central government). Aspects included into be included into the RFP, the AMDAL study may include: port construction, whenever applicable (e.g., existence of marine protected areas, existence of boundary of Indonesia and marine mammals and its migration routes, etc). Timor Leste, PNG, and Malaysia – Sabah). OP/BP 7.60 - AMDAL requires to confirm a clear and clean land - IIFD will not support project Projects in ownership. AMDAL will not be approved is the land located in dispute area. During Disputed Area has ownership conflicts or the land has conflicted the eligibility screening, ESMF with the regional spatial plan. has described that dispute area (e.g., conflict in ownership or conflict with local/regional spatial plan. 71. Based on the above gap analysis, PPP Unit needs to ensure that the FS and the recommendation for RFP will include those gap, which will be important for this Pilot Project to get the NOL from the World Bank. Information and knowledge transfer to the GCA related to these gaps is ESMF for IIFD 2 8 also essential to ensure that project application submitted to PPP Unit will not have a big gap with the ESMF. 4.0 GUIDANCE FOR THE PREPARATION OF ENVIRONMENTAL AND SOCIAL SAFEGUARDS DOCUMENTS 72. This Section describes how Environmental and Social Studies/Assessment need to be conducted in accordance with the ESMF, as well as the Indonesian Standards. Based on the description in Section 2.0 related to Project Phase and Screening Process (Figure 2 and Figure 4), the following documents are required in order to obtain IIFD support:  TOR for Feasibility Study (will be prepared by PPP Unit and will be approved by the Bank, during Preparation Phase);  Feasibility Study (will be prepared by GCA with the support from IIFD, during Preparation Phase, to be reviewed and approved by the Bank);  Gap analysis report for Pre-FS and FS (will be prepared by PPP Unit during Preparation Phase, to be reviewed and approved by the Bank);  Gap analysis report for AMDAL/UKL-UPL/LARAP/IPP/Action plan from the process framework (will be prepared by PPP Unit during Transaction Phase, to be reviewed by the Bank); and  RFP for AMDAL/UKL-UPL/LARAP/IPP/Action plan from the process framework, will be prepared by PPP Unit during the Transaction Phase, and reviewed and cleared by the Bank. 73. The above documents will be prepared under the IIFD support and will be managed by PPP Unit. PPP Unit will not support on the development of AMDAL/ESIA/UKL-UPL/LARAP/IPP/Action plan from the process framework during Implementation Phase, but this ESMF will provide guideline on how those studies will be implemented, in accordance with the ESMF. ESMF will provide guideline for:  Development of ESIA/AMDAL/UKL-UPL/LARAP/IPP/Action plan from the process framework;  Development of any specific ES studies based on nature of project and characteristics of project locations. 4.1 ENVIRONMENTAL AND SOCIAL SAFEGUARDS 4.1.1 Environmental and Social Safeguards Inclusion for the TOR FS 74. TOR for the FS will cover WB Safeguard policies for the project. It is understood that not all WB Safeguards are applicable for the project, and only relevant WB Safeguard will be included into the TOR. Guideline for the development of TOR FS referring to the WB Safeguard Policies is described in the table below: ESMF for IIFD 2 9 Table 6 TOR for FS in accordance with ESMF. No. Applicable OP/BP Guideline on the content of the TOR FS 1. 4.01 – Environmental  Identification of environmental and social risks Assessment  Assessment of relevant stakeholders capacity related to ES management and monitoring  Plan and process for public consultation (as necessary based on the project scale and phase)  Description of environmental and social regulatory framework  Provision of environmental and social baseline data (from secondary sources if available or from primary sources as needed)  Recommendation on impact and risks mitigation and on future more detail impact assessment  Conclusion on project feasibility based on environmental and social components 2. 4.04 – Natural Habitat  FS should have a map of project location showing land cover, forest status, moratorium map (Indicative Map for New Permit Moratorium)  Description of general condition of natural habitat (area, quality of habitat, biodiversity richness, status of the area – protected or un protected) critical natural habitat 3. 4.36 – Forest  Description on forest condition and status, primary, secondary growth  General forest management activities (private or public)  Access of local community to forest resources  Existence on payment for environmental services (e.g., mini hydropower for community, ecotourism facilities, etc.) 4. 4.11 – Physical and  Description on existing physical and cultural resources and Cultural Resources sites, historical that become part of community’s identity  General risks assessment caused by project on those cultural sites, if any. 5. 4.12 – Involuntary  Description on potential project affected persons due to land Resettlement taking or potential involuntary restriction of access to legally designated parks and protected areas that would result in adverse impacts on the livelihoods of the PAPs  Socio-economic survey for potential PAPs  Risks for any involuntary resettlement and recommendation to be further assessed into the LARAP.  Preparation of LARAP and/or action plan from the process framework 6. 4.10 – Indigenous  General description of indigenous peoples (if exist) within the Peoples project area (culture, population, livelihood, distribution)  Approach for a free, prior, informed consultation for social assessment and preparation of IPP  Social assessment  Preparation of IPP  If there is potential impact for resettlement, follow LARPF ESMF for IIFD 3 0 No. Applicable OP/BP Guideline on the content of the TOR FS 7. 4.37 – Safety of Dams  Presentation of baseline data related to geological features, disaster risks, land use around dams area  Health and safety requirement for dams project 8. 7.50 – International  Clear map of waterways that become border of two states Waterways (river, canal, lake)  Assessment on water utilization, community access to water, water supply 4.1.2 Environmental and Social Safeguard for the FS 75. FS document varies on its structure and content, depending on the scope, project step and nature of the proposed project. Incorporating environmental and social safeguard into FS document can also vary depending on the structure of the FS document. In general, generic FS will have the following contents:  Introduction and background of the project, including objective of the project and objective of FS preparation. Introduction can also contain the scope of the FS, as well as regulatory framework as a reference for the FS;  Methodology for the FS, including method for data collection, analysis, and feasibility assessment;  General description of study area, describing accessibility, project boundary, administrative boundary, physiographic condition, landscape, and socio-economic description of the project area;  Technical design of the project (engineering design, modeling, few FS also include alternative designs, project layout and supporting facilities);  Project costing;  Technical and Financial feasibility assessment; and  Conclusion and recommendation. 76. Incorporating Environmental and Social Safeguard into the FS will be conducted through the following approaches, as presented in Table 7: Table 7 Incorporating ES Safeguards into the FS. Relevant Section in the No. Approach for Inclusion of ES Safeguards FS 1. Introduction (Objective) Include environment and social component as input for feasibility assessment. Although level of feasibility assessment will not yet detail, a general feasibility assessment based on environmental and social will be important safeguard that will lead to the inclusion of ES data collection and ability to conclude the general feasibility from the environmental and social aspect. 2. Methodology Include method for: ESMF for IIFD 3 1 Relevant Section in the No. Approach for Inclusion of ES Safeguards FS  ES data collection (type of data, coverage of data, source of data)  ES risks assessment (including quantification of risks)  ES feasibility assessment (criteria used to define feasibility of project from ES perspective) 3. General description of It is important to describe project area using an ecosystem project area approach, where project area can be seen as an ecological unit area. Therefore presenting data on: biophysical component, spatial context and socio-economic components are essential. Applying ES safeguard without adequate baseline data will result in a bias assessment result. Presenting project area in maps will also useful to understand spatial context and to identify applicable safeguards (e.g., OP 4.04, OP 4.36, OP4.11, OP 4.10, OP4.12) 4. Basic Design Project description (basic engineering design) is important data to assess risks and impacts. Basic design in the FS will contains quantitative data related to resources utilization, number of man power, area size, etc. The more quantitative data on the project description, the more accurate the risks and impact can be predicted. 5. Project Costing Generally, project cost is calculated based mainly on the technical engineering design. Inclusion of cost related to ES component will increase reliability of financial feasibility. Cost related to ES will include: cost for AMDAL and ESIA, cost for development and implementation of LARAP and IPP. 6. Technical and Financial Final conclusion on project feasibility needs to include ES Feasibility Assessment component. Although conclusion still be based on general assessment, but it will add more value to the FS document. 7. Conclusion and On the ES component, recommendation on FS document Recommendation should include future risks/impacts mitigation action and how the AMDAL/ESIA, LARAP and IPP should be designed. 4.1.3 Gap Analysis Against ESMF 77. For project that has Pre-FS/FS, and/or AMDAL/ESIA/UKL-UPL/LARAP/IPP/action plan the process framework, the PPP Unit will conduct a gap analysis against this ESMF. This section describes the guideline on how PPP Unit conduct the gap analysis 78. The general content of the Pre-FS/FS is described in Section 4.1.2. Gap analysis on Pre-FS/FS will be conducted using a checklist method, comparing each section in the document with the guideline presented in Table 7 in Section 4.1.2. For any gaps identified, recommendation / action plan will be prepared. These gaps and the recommendation will be used to develop RFP for the bid process. 79. Guideline for gap analysis on AMDAL/ESIA/UKL-UPL/LARAP/IPP/action plan from the process framework document against this ESMF is presented in Table 8,while the principle guideline is presented in Section 2.3.2.1. ESMF for IIFD 3 2 Table 8 Guideline for AMDAL/ESIAUKL-UPL,LARAP and IPP gap analysis against WB Safeguard Policies. No. Applicable OP/BP Gaps Against the Benchmark 1. 4.01 – Environmental  Administrative: completeness of documents, including the Assessment copy of Environmental Permit, team qualification, AMDAL timeframe (from the KA start until issuance of the Environmental Permit)  Completeness of regulations used as references in the AMDAL/ESIA/UKL-UPL document (Section 1 in the AMDAL and UKL-UPL). Reference to the World Bank Safeguard Standard need to be included.  Completeness of ES baseline data (including seasonal data variation, methods and distribution of sampling location, qualification of laboratory - QA/QC procedure for data collection and lab analysis)  Consistencies between impact identified, method used for data collection and impact prediction, baseline data, impact evaluation, and environmental management and monitoring plan (KA Section 3 and ANDAL Section 2, 3, and 4, and RKL- RPL)  Public consultation (methods, involvement of community groups including vulnerable group, frequency of consultation, and public consultation report – Appendix of KA ANDAL)  Impact assessment (impact scoping, defining significance of impact, cumulative impact, residual impact – rarely addressed in the AMDAL study, comprehensive and holistic approach in impact evaluation) – KA Section 2, ANDAL Section 4) 2. 4.04 – Natural Habitat  Completeness of baseline data and parameters analyzed in the AMDAL study (ANDAL Section 3: forest ecosystem as 3. 4.36 – Forest habitat, flora and fauna – terrestrial and aquatic, protection 4. 4.11 – Physical and status of flora and fauna, forest cover, economic value of Cultural Resources forest, conservation status, threat to forest cover and natural habitat, sensitivity of forest and natural habitat)  RKL-RPL/UKL-UPL: Biodiversity Management Plan, Forest Management Plan (or at the minimum of management and monitoring plan related to impact to the natural habitat and forest impacted areas)  Baseline data (ANDAL Section 3: Existence of cultural/historical sites within and nearby project area, coordinate of those cultural sites, description and cultural value)  RKL-RPL/UKL-UKL: Chance Find Procedure (or at the minimum management plan to identify and manage such cultural area, and monitoring plan to ensure the existence of such cultural values are preserved). 5. 4.12 – Involuntary The existing LARAP document need to assess on availability of Resettlement the following aspects:  Description of project activity  Potential impacts  Objectives of the LARAP document  Census of the PAPs and inventory of affected assets  Socio economic study ESMF for IIFD 3 3 No. Applicable OP/BP Gaps Against the Benchmark  Legal analysis  Institutional framework  Entitlement  Assets valuation and calculation of compensation on affected assets  Compensation, assistance for resettlement and support for rehabilitation  Location selection, preparation, and resettlement  Potential project affected persons due to land taking or potential involuntary restriction of access to legally designated parks and protected areas that would result in adverse impacts on the livelihoods of the PAPs  And so on refer to Appendix A3 6. 4.10 – Indigenous The existing IPP document need to assess on availability of the Peoples following aspects:  Description of project  Summary of social assessment: summary of baseline data, summary of result of free, prior, and informed consultation with affected indigenous peoples, framework for ensuring the free, prior, informed and consultation with affected IPs  Action item  Cost estimate and financing plan  Institutional arrangement to implement  Grievance redress mechanism accessible to the affected IPs  Project monitoring, evaluation, and reporting of IPP implementation. 7. 4.37 – Safety of Dams  Description of project (only applied for construction or rehabilitation of a dam or rely on the performance of an existing dam or dam under construction) – ANDAL Section 2 and Appendices for ANDAL related to HSE procedures.  Baseline data (ANDAL Section 3: data related to geological, land use, disaster risks, settlement nearby the project area)  RKL-RPL: management plan related to regular safety checking and monitoring, regular reporting 8. 7.50 – International  Description of project (only applied for project located at the Waterways state borderline) – ANDAL Section 2 (spatial context of project area, water consumption, hydrology, riparian description and how local community use waterways for transportation and other uses) 9. 7.60 – Project on  Not applicable Dispute Areas 4.1.4 Environmental and Social Safeguard for RFP Development 80. The RFP for an open bid process (see Figure 5) will contain all project requirements (administrative, technical, organizational capacity, timeframe, cost, etc.). It will include Environmental and Social Safeguard into the RFP to ensure that this ESMF will be implemented during the ESMF for IIFD 3 4 Implementation Phase. To ensure adherence to this ESMF, the TOR for AMDAL/ESIA, LARAP, and IPP and other applicable social and environmental studies/instruments will contain the following outline:  Project Background: Brief description of project, with clear project boundary, type of facilities will be constructed, project schedule and time period for each project component, area of impact, resources needed for the project, project alternatives (site, raw materials, technology, equipment), etc.  Administrative Scope: Bid process may consist of two stages, screening the qualification of bidders (EOI stage) and the RFP stage for the shortlisted bidders. For one stage bidding process, a complete administration requirement will be listed (legal requirement, condition for a consortium, bidder experience and profile, management capacity, financial capacity, experience with World Bank projects, experience with similar project type and scale, company certification on AMDAL, etc. (Note: WB format for personnel CV, company experience, will be advised);  Technical Scope of Work for AMDAL/UKL-UPL/ESIA. Scope for AMDAL and ESIA. It is important to emphasize reference to the ESMF, in addition to the Indonesian ES regulations. Depending on the project sector, the following technical detail can be used as initial guideline and can be broken down into more detail as needed (the complete requirement for the technical scope for AMDAL/UKL-UPL/ESIA is presented in Appendix A5 and A6): o ES components to be included (to ensure inclusion of all WB Safeguard Policies – as already described in several sections in this ESMF). The result of AMDAL gap analysis will also become an important input to develop the RFP; o Coverage of baseline data (ES parameters, frequency of sampling program, area if interest, ES guideline and reference – International ES standards and Indonesian environmental standards, methods for data collection and analysis, qualification of laboratory, etc.); o Additional analysis/study required as applicable (e.g., spatial modeling, air dispersion modeling, heat dispersion modeling, hydrodynamic modeling, sensitive habitat analysis, traffic modeling, GHG/emission study, biodiversity study, social and stakeholder mapping, etc.); o Qualification of safeguards experts (e.g., AMDAL certification, experiences in WB supported projects, knowledge background, current work load, etc.); and o Project schedule/target for completion (tasks distribution, activity breakdown, deliverables, etc.).  Technical Scope for LARAP/IPP. Detail scope for LARAP and IPP is described in Section 4.3 and Appendix A4.  Financial Proposal. A standard format for financial proposal is recommended to make proposal evaluation easier. 81. RFP document, which include the TORs for the GCA to meet the requirements of the ES instruments (AMDAL/ESIA/UKL-UPL, LARAP, and IPP) in accordance with this ESMF, will be approved ESMF for IIFD 3 5 by the Bank. The GCA will proceed with the bidding process using the approved RFP. Guideline for the development of AMDAL/ESIA/UKL-UPL/LARAP/IPP/Action plan from the process framework in accordance with this ESMF is provided in the following sections. 4.1.5 Guidelines for Development of Environmental Documents 82. These guidelines are prepared for the GCA in preparing Environmental Safeguard instruments (AMDAL/UKL-UPL) beyond the transaction phase. These requirements are included in the TORs in the RFP. The following regulations set the main guidelines, criteria and requirements on how these documents will be prepared:  Government Regulation No. 27/2012 on Environmental Permit;  Decree of Minister of Environment No. 05/2012 on Screening Criteria (type/scale/magnitude of activities requiring AMDAL/EIA;  Regulation of Minister of Environment, Republic of Indonesia No. 16/2012 on Guideline on Preparation of Environmental Document;  Decree of Ministry of Environment No. 17/2012 on Community Participation and Information Disclosure in Environmental Impact Assessment;  Regulation of Minister of Public Works, Permen PU No. 10/PRT/M/2008 on the Environmental Management Measure (UKL) and Environmental Monitoring Measure (UPL) Criteria; and  Regulation of Ministry of Environment (Permen LH) No. 07/2010 on Competence Certification of AMDAL Preparation and Training Requirements for AMDAL Preparation. 4.1.6 Physical Cultural Resources Management Framework 83. The objective of this measure is to assist in preserving physical cultural resources and avoiding their destruction or damage. Physical Cultural Resources (PCR) includes resources of archaeological, paleontological, historical, architectural, religious (including graveyards and burial sites), aesthetic, or other cultural significance. 84. The scope of management physical cultural resources includes: i. Conservation: preservation, restoration, reconstruction, adaptation, maintenance, protection; ii. Utilization: publication/presentation, exhibition, revitalization/productive function. 85. Management program follows the conservation procedure that includes inventory, identification, and plan prior to program implementation. i. Inventory to include:  PCR profile in the form of list on various PCRs;  Map of PCR distribution in the appropriate scale; ii. Identification of cluster and trail:  Cluster defined based on potency strategic and utilization of the PCR. Cluster definition to consider the intensity and richness in a limited area in order to promote the heritage atmosphere. The limited area also making the management of the PCR easier.  Trail is the path of the PCR as internal framework of the cluster and as access to other cluster. ESMF for IIFD 3 6 iii. Program strengthening:  Five years program of the village should include the PCR management;  The first year budget can be proposed to the project, based on the cluster approach. iv. Design preparation:  Cluster and trail should be equipped with design guidelines on the development; hence the PCR will be kept in its original condition, as long as possible. The project should strengthen the heritage atmosphere not the other way around to erode the visual character of the PCR.  Design guidelines should define the kelurahan regulations and agreements regarding physical design development criteria and its harmony between building and the environment. These guidelines to include: the architecture, facet, height, perimeter, yards, scale, etc (that should be restored and developed according to the local condition and need).  The development of design guidelines should be supported by design review on the respective cluster characteristics. The chance finds procedure is presented in Appendix A7, the PCR Management Plan will be prepared as part of the EMP of the subproject if there is find of the PCR on the subproject sites. 4.1.7 Guideline for Development of Social Documents (LARAP, IPP, Forest Partnership) 86. These guidelines are prepared for the GCA in preparing social safeguard instruments (LARAP/IPP/action plan from the process framework) beyond the transaction phase. These requirements are included in the TORs in the RFP. The following regulations set the main guidelines, criteria and requirements on how these documents will be prepared:  Law No. 2 Year 2012Land Acquisition for the Development of Facilities for Public Use. This Law substantially accelerates the land acquisition process for development in the public interest. It sets clearer mechanism for the acquisition of civilian land to facilitate the development of new infrastructure projects;  Law No.41 Forestry (plus Constitutional Court Decision No. 35/PUU-X/2012);  MOHA Regulation No. 52/2014 on the Guidelines on the Recognition and Protection of MHA;  Ministerial Regulation of MOH No. P.62/2013 (adjustment of Ministerial Regulation No. P.44/2012) on the Establishment of Forest Area;  Joint Regulation of MOHA, Ministry of Forest, Ministry of Public Works and Land Agency No. 79/2014 on Procedures to Settle Land Ownership Conflict in Forest Area;  Regulation of the Minister of Land Agency and Spatial development No. 9/2015 on the Procedures to Establish the Land Communal rights on the MHA Land and Community Living in the Special Area;  Law No. 6 / 2014 on Village;  Law No. 18/2013 on Prevention and Alleviation of Deforestation (UUP3H); ESMF for IIFD 3 7  Presidential Regulation No. 71 Year 2012, Presidential Regulation No. 40 Year 2014 concerning revision of the regulation No. 71/2012, Presidential Regulation No. 99 Year 2014 concerning revision of the regulation No. 40, and the Presidential Regulation No. 30 Year 2015 concerning revision of regulation no. 99. Implementation of Land Acquisition for the Development of Facilities for Public Use. This Presidential Regulation has been changed three times, until the latest version of No. 30/2015. This new Regulation has facilitated more timely funding for land acquisition. Under the new law, private investors can provide funds at an early stage, confident that these funds will either be refunded directly or through revenue arrangements as the project proceeds. This contrasts with previous version whereby land acquisition had to wait for disbursement of the state budget, which is often limited and subject to a long budgeting cycle. This regulation also states that land acquisition for land less than 5 hectares, project proponent can purchase land directly to the land owner.  Regulation of the Ministry of Environment and Forestry No. 17/2012 concerning involvement and participation of community into the Environmental Assessment process. This regulation guide the ESIA on how to involve community through the public consultation and engagement.  Regulation of Ministry of Forestry No. P.39/Menhut-II/2013 concerning Local Communities Empowerment Through Forest Partnership. This regulation similar with Process Framework mentioned in OP 4.12. This regulation is to guide how to empower or improve local communities' capability and autonomy in order to gain benefits from forest resources in an optimal and equitable way through Forest Partnership in order to increase the welfare of local communities. 87. Development of social documents (LARAP, IPP and action plan from the process framework) will refer to the ESMF. Detail guideline for preparation of those documents are presented in Section 4.3 (Indigenous People Policy Framework), Appendix A3 (LARPF, LARAP, and Process Framework), and Appendix A4 (Content of LARAP and Abbreviated LARAP). 4.2 LAND ACQUISITION AND RESETTLEMENT POLICY FRAMEWORK 88. The project will cover up to five pilot PPP projects within the sector as mentioned in the Presidential Decree No 38/2015. Depending on the project nature, potential land acquisition will appear, and large-scale relocation will not take place. 89. The purpose of this policy framework is to provide requirement to the PPP Unit at the MOF on the principles, process, procedures, and organizational arrangements to be applied to pilot projects requiring involuntary resettlement in preparing a resettlement plan (LARAP) to be included into the TOR for FS, and RFP during Transaction Phase. 90. As practice in various World Bank supported projects in Indonesia, understanding of involuntary resettlement includes land acquisition implemented under the Indonesian laws and regulations, and resettlement (or relocation). Hence, as the common practice in other World Bank supported projects, Land Acquisition and Resettlement Action Plan (LARAP) is the term commonly used that is equivalent with the term Resettlement Plan (RP) used in World Bank OP 4.12. 91. This framework applies for the following situation: ESMF for IIFD 3 8  Impacts caused by subprojects resulting in involuntary land acquisition, relocation, loss of assets or loss of access to assets, loss of income sources or means of livelihood whether or not the PAPs must move to another location; resulting in the involuntary restriction of access to legally designated parks and protected areas that would result in adverse impacts on the livelihoods of the PAPs.  Activities resulting in involuntary land acquisition and resettlement in linked activities, regardless of financing sources that are: o Directly and significantly related to the NSUP subproject; o Necessary to achieve the objectives of the subproject; and o Carried out, or planned to be carried out contemporaneously with the subproject. 92. This framework relies on the World Bank OP 4.12 on Involuntary Resettlement. Specific provisions are included in this framework to address any aspect of the OP 4.12 that are not fully addressed in the Government of Indonesia laws and regulations. GOI laws and regulations include: a. Law No. 2/2012 on Land Acquisition for Project Activity for Public Interest; b. Presidential Regulation No. 71/2012 on Land Acquisition and its amendments; and c. Regulation of the Head of BPN RI No. 5/2012 on Technical Guidelines on the Implementation of the Land Acquisition. d. Presidential Regulation No. 71/2012 on Land Acquisition (Presidential Regulation No. 40/2014) concerning land acquisition for an area less than 5 Ha can be carried out directly by the agency requiring the land based on willing-buyer-willing seller principle, exchange or other schemes agreed by the two parties. 93. The overall objectives and principles of land acquisition and resettlement in this project are to ensure that: a. Land acquisition and resettlement should be avoided where feasible, or minimized, exploring all viable alternative subproject designs; b. Where it is not feasible to avoid land acquisition and resettlement, activities of land acquisition and resettlement should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the project affected persons (PAPs) to share the subproject benefits. The PAPs should be meaningfully consulted and should have opportunities to participate in planning and implementing the land acquisition and resettlement programs. c. PAPs should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-land acquisition and resettlement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher. 94. This framework applies for the following situation: a. Impacts caused by subprojects resulting in involuntary land acquisition, relocation, loss of assets or loss of access to assets, loss of income sources or means of livelihood whether or not the PAPs must move to another location; resulting in the involuntary restriction of access to legally designated parks and protected areas that would result in adverse impacts on the livelihoods of the PAPs. b. Activities resulting in involuntary land acquisition and resettlement in linked activities, regardless of financing sources that are: ESMF for IIFD 3 9  Directly and significantly related to the pilot project; and  Necessary to achieve the objectives of the project. ESMF for IIFD 4 0 95. The process of Land Acquisition, based on the Law No 2/2012 is presented in Figure 7 (preparation stage) and Figure 8 (implementation stage). 96. Likely category of Project Affected Persons. Likely category of PAPs in this project would vary from one PPP project to another, within the up to five pilot projects. The project anticipates that there would be two general categories of PAPs in this project: (1) persons affected by the acquisition of privately owned land; (2) persons affected who have lived on the government (state or local government)’s land but do not own the occupied land. These occupants fall into four categories: (a) persons who own and occupy dwellings and other structure built on state or government land without any recognizable legal right or claim to the land they occupy; (b) Renters of dwellings and other structures built on state or government land without any recognizable legal right or claim to the land they occupy; (c) encroachers, i.e., persons who aggrandize or extend their personal holdings by encroaching adjacent state or government land; (d) squatter landlords, i.e. persons who derive illegal rents from structures built on state or government land, but do not occupy such structures. Identification of the PAPs will be done during the preparation of LARAP through the census survey (see Figure 7). 97. A LARAP should adopt the following measures to ensure that the PAPs are: a. Informed about their options and rights pertaining to resettlement; b. Consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives; and c. Provided prompt and effective compensation at full replacement costs for losses of assets attributable directly to the project. 98. If the impacts include physical relocation, a LARAP should also include measures ensuring that the PAPs are: a. Provided assistance (such as moving allowance) during relocation; and b. Provided with residential housing, or housing sites, or else, as required and agreed with the PAPs to at least equivalent the situation in the old sites. 99. Where necessary to achieve the objectives of land acquisition and resettlement, a LARAP should also include measures to ensure that PAPs are: a. Offered support after displacement for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living; and b. Provided with development assistance in addition to compensation measures. 100. At this stage, assessment of the potential PAPs that will be affected in the land acquisition and resettlement will define whether the city/regency PIU should prepare a draft full LARAP or an Abbreviated LARAP6. The content of a full and an abbreviated LARAPs are presented in Annex 21, respectively. The content is more or less equivalent with the combination of activities under the Land Acquisition Plan and the Inventory and Identification of Land Ownerships, Use and Utilization of Land under the Implementation of Land Acquisition Stage under the law and regulations mentioned in paragraph 34 above (and see Figure 8). 6 As of OP 4.12, Full LARAP and Abbreviated LARAP refer to the level of significance of impacts ESMF for IIFD 4 1 Figure 7 Process of Land Acquisition in the Preparation Stage7 Implementing Agency prepares Feasibility Study & review Spatial Planning. Land Acquisition Plan Form a Preparation team to prepare early inventory of PAP & Public Consultation Early Inventory of PAP Public Consultation On Location Agree Disagree Form an Evaluation Team Determination of location Re-consultation &evaluation by Refuse evaluation team & decision by complaint Governor Accept PAP Appeal to complaint Administration Court Accept Refuse Change Location Accept PAP Appeal to Supreme Court Refuse Land Acquisition Implementation 7 Summarized from the Law No. 2/2012 ESMF for IIFD 4 2 Figure 8 Process of Land Acquisition in the Implementation Stage8 Implementing Agency submit Form Land Acquisition Implementation request and Implementation Team and Task Forces Document Appointing License Inventory of Asset & Appraisal to Appraise PAP Identification of PAP Land & Asset Announcing Inventory & Identification result: Map & Nominative List Negotiation Reach the agreement Do not reach the agreement Pay Compensation Put money in consignation in Court for PAP after Court Rejected PAP appeal to Court Accepted PAP appeal to Supreme Court Accepted Construction Pay Compensation as PAP demanded Monitoring evaluation 8 Summarized from the Law No. 2/2012 ESMF for IIFD 4 3 101. Once project is selected and winning bidder is identified, the winning bidder should finalize the draft full LARAP or the draft Abbreviated LARAP that has been guided into the FS and required in the RFP. Preparation of the full LARAP or Abbreviated LARAP will not part of the IIFD support and will become responsibility of the private investor. 102. Eligibility criteria for defining various categories of PAPs. PAPs eligible for compensation for the affected assets are identified when the subproject location is formally defined by the Governor Decree, are those (a) who have land rights ownership; (b) who have land management/use ownership; (c) who have “nadzir” for the donated land of “wakaf”; (d) land owners for land that used to be owned by adat; (e) “masyarakat hukum adat” (MHA or Adat Community); (f) those who occupy or use state land with good intention/faith; (g) those who hold basic control of land; and/or (h) those who own building/structure, plants and other things related to the land. 103. Methods of valuing the affected assets. As required by Law No. 2/2012 and its implementation regulations, values of affected assets will be assessed by licensed appraisers which will be assigned by the provincial BPN (National Land Agency) in accordance with the national procurement regulations. The values defined by the licensed appraisers will be used as a basis for negotiation with the PAPs. Types and compensation level will be defined based on the negotiation results between GCA (who need the land for pilot project) and the land or property owners. Value assessment will be carried out on per affected land plot basis which include land, space above and beneath land, buildings or structures, plants, things that relate to the affected land and/or other loss that can be valued (e.g. non-physical loss that can be equivalent with monetary value; loss of jobs or income earning sources, cost for moving, cost for change of profession, and value for remaining property). The remaining property that is no longer physically or economically feasible, can be also compensated if the owners prefer to do so. 104. Land valuation/appraisal by the licensed appraisers will be carried out based on the MAPPI 9 Standards as specified in MAPPI Guidelines. Compensation is comprised of market price plus transaction costs and other costs plus premium, in more detail as follows: a. Real property (physical assets): land, buildings and facilities, plants, and other things related to the land acquired to restore to the owner a property of at least the same quality as that owned prior to the land acquisition; b. Cost and loss (non-physical losses): transaction costs, moving costs, loss of on-going business (business interruption), other losses of special nature, subjective and difficult to calculate; c. Premium. 105. Entitlements Matrix for the Project Affected Persons can see in Table 9 below: Table 9 Entitlement of Project Affected Persons Project Affected Persons Entitlements Expected Outcomes Land/asset owners who lose Compensation for loss of land and Land/asset owners will be fully land and/or other assets other assets based on value compensated for the loss of land and assessment carried out by asset licensed appraisers 9 Indonesian Society of Appraisers or ISA ESMF for IIFD 4 4 Project Affected Persons Entitlements Expected Outcomes Land/asset owners who lose Compensation for loss of sources Land acquisition/resettlement will not temporarily or permanently their of income or livelihoods based on result in the impoverishment of the sources of income or livelihoods value assessment for non-physical affected land/asset owners carried out by licensed appraisers Persons who own and occupy Compensation for loss of dwellings Compensation received and dwellings and other structure and other structure, for income resettlement assistance provided will built on state or government land sources or livelihoods and enable households to gain access to without any recognizable legal resettlement assistance, based on adequate housing or to a place that right or claim to the land they the assessment of the licensed can be legally occupied and land occupy appraisers acquisition will not result in the impoverishment of the affected persons. Renters of dwellings and other The project considers to provide Renters will find place to rent or to live structures built on state or sufficient time (at least 2 months in accordance to their needs government land without any from the cut-off date/at the time of recognizable legal right or claim census survey) for the renters to to the land they occupy find another place Encroachers, i.e., persons who Do not entitle for any Do not have incentive to encroach aggrandize or extend their compensation for the affected state or government land in the future personal holdings by assets that encroached the state or encroaching adjacent state or government land government land Squatter landlords, i.e. persons Do not entitle for any Do not have incentive to do similar who derive illegal rents from compensation renting scheme in other areas or in the structures built on state or future government land but do not occupy such structures. 106. Forms of compensation. Compensation may take several forms: (a) cash; (b) land replacement; (c) resettlement to other site; (d) shares ownership; or (e) other forms of compensation that are agreed both by the PAPs and the agency requiring the land (in this case is GCA). Compensation may take combination of these depending on the agreements between the PAPs and the agency requiring the land. 107. Consultations and disclosures. Consultations and disclosures for acquiring land start from the planning, preparation, and implementation phase. In brief summary, Law No. 2/2012 and its implementing regulations10 specify that consultations should be carried out in the following activities: a. At planning stage: plan of the location of subproject, purpose of the development, steps and time frame for land acquisition, roles of licensed appraisers in the asset valuation, incentive or compensation that would be provided for the PAPs, eligible assets or object for compensation, and responsibility and rights of the eligible PAPs. Consultations will use public meetings, media and information in the closest villages. Consultations will adopt dialogue approach, and can take place more than one time, depending on the need and agreement reached. Agreement will be put in writing. The defined subproject location requiring land will be disclosed to public in the media, websites of the provincial and city government as well as in the website of the agency requiring the land. b. BPN will consult the owners of the asset during the inventory and the identification of the affected assets. Results of the inventory will be disclosed in the village/ kelurahan and kecamatan (sub-district) offices for 14 days to receive complaints. 10 For details please refer to the Law and implementing regulations specified in the paragraph 34. ESMF for IIFD 4 5 c. Results of asset valuation done by the licensed appraisers will be provided to the PAPs and used as the basis for negotiations. d. Draft and final LARAP will be disclosed in the closest kelurahan/village where the subproject requiring land acquisition is located, in the websites of the local agency and/or in GCA website, and in the Project/MOF website 108. Grievance Redress Mechanisms (GRM). Process, procedures, requirements as well time for complaints to be solved during the land acquisition process will follow Law No. 2/2012 and its implementing regulations (including amendments). The implementing private investment will ensure that they have a good system in handling the grievance during the process of land acquisition. 109. Organizational arrangements. Organizational arrangements for the process of acquiring land will follow the Law No. 2/2012 and its implementing regulations (including amendments). From the Government of Indonesia, Provincial Land Agency (BPN) is the main institution in charge of the process of land acquisition. LARAP will be prepared based on the information provided by the Land Acquisition Plan and Inventory and Identification Report of the BPN. The final LARAP will be signed off by the Mayor/Bupati/GCA and the Agency requiring the land. Land acquisition process should be completed prior to the start of the construction. 110. Financing arrangements. Funds should cover compensation, operational and supporting costs during the planning, preparation, implementation, handover of results, administration and management, and socialization. In principle, the funding will be available from the Central Budget (APBN) and/or Local Budget (APBD) or combination of these, under the agency who needs the land. Requirement for the operational and supporting budget from APBN is regulated by the Ministry of Finance, whereas that from APBD is regulated by the Ministry of Home Affairs. 111. Monitoring and Reporting. Implementation of LARAP will be monitored based on indicators as specified in the approved LARAP, which includes among others: (a) consultation process; (b) eligible PAPs; (c) agreed compensation level and forms; (d) payment of compensation and delivery of assistance; (e) follow-up on the legal process of the acquired land/remaining land; (f) the effectiveness of complaint handling mechanisms; (g) number, type of complaints and follow up; (h) disclosures of the LARAP and transparency during the process of land acquisition; etc. 112. Others. The amendment of Presidential Regulation No. 71/2012 on Land Acquisition (Presidential Regulation No. 40/2014) allows that land acquisition for an area less than 5 Ha to be carried out directly by the agency requiring the land based on willing-buyer-willing seller principle, exchange or other schemes agreed by the two parties. In this case, the required land should be located in one area, and can be obtained in one fiscal year. The agency requiring the land may use licensed appraisers to assess the affected assets. 113. Scale of Land Acquisition and Instrument for Land Acquisition and Resettlement is presented in Table below: ESMF for IIFD 4 6 Number of Project Affected People (PAP)/Land Instrument Owner > 200 people (or > 40 households) or Comprehensive LARAP eliminating >10% of their productive asset ≤ 200 people (or ≤ 40 households) or Abbreviated LARAP eliminating ≤ 10% productive asset > 200 people (or > 40 households) or Comprehensive LARAP eliminating >10% of their productive asset ≤ 200 people (or ≤ 40 households) or Abbreviated LARAP eliminating ≤ 10% productive asset 4.3 INDIGENOUS PEOPLE POLICY FRAMEWORK 114. An Indigenous Peoples Plan (IPP) will be prepared during the Project implementation (after the screening, verification and confirmation stage) in the likely event that IPs will be affected by project activities. In the case that a project needs to acquire land belonged to IPs community or individual of the IPs community, the LARPF in this ESMF applies. 115. As in the case of environmental and land acquisition/resettlement impacts, potential adverse impacts and positive effects of the project on IPs, or involvement of IPs as beneficiaries will be identified once the villages are defined and subproject proposal is submitted by the community groups. 116. Law and Regulations related to IPs. This framework takes into account issues related to IPs as included in the following Law and Regulations:  UUD 1945 (Amendment) Chapter 18, clause #2 and Chapter 281 clause # 3;  Law No. 41 on Forestry (plus Constitutional Court Decision No. 35/PUU-X/2012, see Footnote 4);  MOHA Regulation No. 52/2014 on the Guidelines on the Recognition and Protection of MHA;  Ministerial Regulation of MOH No. P.62/2013 (adjustment of Ministerial Regulation No. P.44/2012) on the Establishment of Forest Area;  Joint Regulation of MOHA, Ministry of Forest, Ministry of Public Works and Land Agency No. 79/2014 on Procedures to Settle Land Ownership Conflict in Forest Area;  Regulation of the Minister of Land Agency and Spatial development No. 9/2015 on the Procedures to Establish the Land Communal rights on the MHA Land and Community Living in the Special Area;  Law No. 6 / 2014 on Village; and  Law No. 18/2013 on Prevention and Alleviation of Deforestation (UUP3H). 117. Objectives. The design of this Project is structured to ensure the participation and inclusion of various groups within communities in local level decision making over resource allocation. However, the Project recognizes that IPs form a particular group that merits a different approach and specific support. Therefore, in accordance with OP/BP 4.10, the following planning framework for addressing IPs will be adopted for the Project. ESMF for IIFD 4 7 118. The objectives of this framework are to: a. Ensure that IPs participate in and benefit from the Project; b. Avoid or minimize potentially adverse effects of the Project on IPs, and if it is unavoidable, develop and implement mitigation measures based on free, prior, and informed consultation resulting in broad supports from the impacted IPs communities c. Maximize the potential positive effects of the Project on the IPs, based on free, prior, and informed consultations with the IPs ensuring that the design and implementation of the Project incorporate aspirations and needs of the IPs. 119. Identification. Because of the varied and changing contexts in which Indigenous Peoples live and because there is no universally accepted definition of “Indigenous Peoples,” this framework does not define the term. IPs in Indonesia are usually referred to as Masyarakat Adat (Customary Communities) or Masyarakat Hukum Adat (Customary Law Communities) by Law as stipulated in the Forestry Act 1999, Village Law 2014 and Ministry of Home Affairs Regulation 54/2014. 120. For purposes of this framework, the term “Indigenous Peoples” is used in a generic sense to refer to a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees: a. A close attachment to ancestral territories and to the natural resources in these areas; b. Self-identification and identification by others as members of a distinct cultural group; c. An indigenous language, different from the common regional/national; d. The presence of customary social and political institutions. 121. Procedures and institutional arrangements. IPs communities are not prevalent in all the project sites—they are likely to be found in particular kota/kabupaten of particular provinces. The following steps will be taken to ensure that, where IPs communities are presence and affected by the project, it caters to their specific needs. a. Once the target sub-project areas are defined, GCA will screen, verify and confirm on the presence of the IPs in reference to the above characteristics. In doing so, GCA will consult experts, local universities or NGOs who have good knowledge or have worked on IPs in the area and use available references e.g. IP Study 2010 by the World Bank and other sources. Further, GCA will consult the communities concerned and neighboring communities to confirm that they are IPs. b. In the case that the presence of IPs is confirmed and they will be part of or affected by the project, GCA will carry out a social assessment (SA), based on free, prior and informed consultations (FPIC), with the affected IPs communities. The format and contents of the SA is provided in this ESMF. Potential adverse and positive effects of the project will be identified during the SA preparation. c. IPP will be prepared based on the RFP in the case that the project affects (positive and adverse) IPs. In the case that IPs constitutes the beneficiaries of the project, the design and implementation of the subproject(s) will accommodate the aspirations and needs of the IPs. In ESMF for IIFD 4 8 this case, the principles of FPICs and participation will apply. The format and content of IPP is provided in this ESMF. d. For the areas where IPs communities are identified, GCA will organize training for relevant consultants in how to work with IPs communities in a meaningful way and in good faith to identify mechanisms for effective participation through free, prior and informed consultations, and address specific challenges in working with such groups, for example, how to deal with groups that may be in conflict with the larger community, etc. e. Since consultants will be hired locally to the extent possible, they are expected to be familiar with such groups. Preference will be made to recruitment of local people with skills and qualifications fit to the project. f. Where IPs communities are identified, efforts will be made to ensure that at least one Community Cadre is from the group and able to communicate easily with the group. g. Where the IPs communities speak a language different from Bahasa Indonesia, facilitation and socialization will be held in a language that these communities can easily understand. Relevant brochures and documents will be translated in the appropriate language. Provision has been made in the project budget to allow for additional translations of relevant project documents. h. The above aims at ensuring that IPs communities participate fully in the project with free, prior and informed consultations, are aware of their rights and responsibilities, and are able to voice their needs during the social assessment and in the formulation of IPP. The GCA will ensure that the above steps are implemented and well documented during project implementation. 122. Monitoring and Grievance Procedures. Where IPs communities are identified, the GCA will be required to report on their participation in the project. 123. The GCA will designate contact numbers for complaints via phone-calls and short text message (SMS) systems. There are designated staff members at the GCA responsible for following-up on complaints and ensuring that they are handled adequately. Where IPs communities are concerned, the GCA will ensure that grievance redress mechanisms are developed in culturally appropriate ways in close collaboration with the relevant group. 124. Disclosures. The IPP will be disclosed in respective project sites where IPs are affected, and if necessary, the document will be prepared in the language of the IPs. 125. IPPs and other relevant documents will also be disclosed in the GCA’s website. 4.3.1 Screening and Assessment of Potential Impacts on IPs 126. The GCA will screen IPs presence based on the World Bank IPs Screening Study (2010). Further screening will be done based on the criteria of IPs specified in the IPPF in this ESMF, and criteria of Masyarakat Hukum Adat (MHA) summarized from the relevant Indonesia regulations and local values. The GCA should further identify the existence of IPs at the site of priority sub-projects (and its surrounding) by collecting as much information and local knowledge as possible, especially through discussions with the local community and community leaders and local experts on IPs. 127. GCA assesses whether the subproject will affect the identified IP communities. A Social Assessment needs to be prepared by the GCA to map the characteristics of IPs communities, assess ESMF for IIFD 4 9 potential impacts, and aspirations and needs of the IPs communities. GCA will be responsible for preparing an IPP in case that the proposed subproject affects IPs communities. In the case that IPs communities are the sole or major beneficiaries of the proposed subproject, an IPP is not needed, instead, all aspirations and needs of the IPs communities are part of the subproject design. 4.3.2 Preparing Social Assessment and Indigenous Peoples Plan (IPP) 128. GCA will conduct a screening of the impacts (both positive and adverse) that may be caused by a subproject to determine what measures should to be taken and management instruments should be prepared. Table 10 summarizes criteria for management of social impact on IPs based on the project type. For a subproject that affect IPs (whether adversely or positively), an IPP will be prepared in compliance with the IPPF. The scope and content of the IPP will be proportional to the subprojects and their impacts. The IPP is prepared with the participation of affected communities through a social assessment and free, prior and informed consultation process, and demonstrates broad support to the sub-project and the IPP (Guidance of preparing a Social Assessment and IPP is provided in Appendix A9 and A10, respectively). If the beneficiaries of a sub-project are IPs, an IPP is not necessary. The elements of an IPP will be incorporated into the design of the subproject. Table 10 Criteria of Activity to Determine Instruments for IPP. IMPACT INSTRUMENT IMPLEMENTATION It is potential that IPs will be IPP Based on IPP incorporate in the affected (positively or design of the subproject to adversely) accommodate specific needs of IPs IPs as primary beneficiary of a Does not require IPP Incorporate in the design of the subproject subproject to accommodate specific needs of IPs 5.0 PUBLIC CONSULTATION AND DISCLOSURE 129. In order to identify, avoid/mitigate the aforementioned impacts an ESMF has been prepared by the client. The ESMF has been reviewed by the Bank and found to be satisfactory. Consultation of the TORs and Draft Report were conducted by the client on December 21, 2015 and January 21, 2016 respectively. The Draft ESMF was disclosed on the client’s website on January 28, 2016. Documentation (minutes, list of attendance, photographs) of the public consultation is presented in Appendix A12. 130. The ESMF has been consulted twice. The first event was conducted in December 21st, 2015 with the objective to present the TOR for the ESMF development and to get inputs from relevant stakeholders. This first public consultation reached a total of 18 participants, represented different institutions including: the World Bank, the Indonesia Infrastructure Guarantee Fund, Indonesia Infrastructure Finance, Government Offices, NGOs (ILRC - The Indonesian Legal Resource Center, LPPSE – Lembaga Pengkajian dan Pengembangan Sosial/Social Research and Development ESMF for IIFD 5 0 Institution, PP Muslimat NU), Embassy of Canada, BPJT (Toll Road Management Body), PLN (State Electricity Company), Ministry of Finance, and the Ministry of Public Work and Public Housing. 131. Important discussion related to the TOR of the ESMF include:  ESMF Framework generally includes a screening process, guidelines on environmental and social assessments, guidelines on preparing action plan for mitigating impacts, the approval process for environmental and social documents, public consultation on environmental and social impacts (disclosure of information), training needs and capacity building for the institution implementing the ESMF;  ESMF also needs to examine safety issues that may occur in using the infrastructure that has been built, for example, the number of vehicle accidents on the Cipali Toll Road;  It is suggested that the public is given an award by the government or the project owner who have given up rights to land in support of infrastructure projects for the public;  ESMF also includes the option of integrating infrastructure, for example, integrating provisions for high voltage transmission lines, gas pipelines, water pipelines, railroads and / or highways in the same ROW (right of way) so as to facilitate the land acquisition process. It will be best if there is one institution / government agency that can coordinate the integration of infrastructure requirement (not only synergy); and  Suggestion to firstly assess gaps between the Presidential Decree No. 38 Year 2015 regarding KPBU (PPP) and regulations on land acquisition for public purposes against safeguards requirements in support of developing the ESMF document. 132. The second public consultation was conducted in January 21. 2016. This second workshop/public consultation was designed to receive inputs from public related to the first draft of the ESMF. The second consultation reached to 16 people represented several organization, similar to the Consultation in December. Some participants were the same person as the first consultation in December 2015. 133. Important discussion related to the draft of the ESMF were:  The trust fund is administered by the World Bank (WB) with funds from the Government of Canada (GoC). The objective of the fund is to develop PPP (also known as Kerjasama Pemerintah dan Badan Usaha (KPBU), implementation Scheme, the fund itself is given to Director General of Risk Management (Direktorat General Pengelolaan Pembiayaan dan Resiko) of the MoF. This ESMF document is required due to the fund being used in financing PPP (KPBU’s) project template development in many sectors. As such the WB require the ESMF documents to be implemented;  MoF will support to complete the environmental and social assessment so as to improve the project tender documents and comply with Indonesian regulations. In relation with the World Bank, financially the World Bank funds the project; as such the assessments will meet World Bank policies;  ESMF document should be considering spatial plan regulation, infrastructure design should not forsake cultural aspects, and also no longer using military approaches. This ESMF is still in ESMF for IIFD 5 1 general term; please consider to put local community aspects related to socio-geographic, socio-culture and socio-economic; and  Project sectors described in Presidential Decree 67/2005 have been expanded by Presidential Decree 38/2015. Sectors, which previously were not considered under PPP scheme, have been expanded to include hospitals, schools, and prisons where these types of projects generally have limitations in availability payment (i.e. no direct revenue from users). The ESMF document has covered all sectors listed in Presidential Decree 38/2015. Some local governments have proposed to get funding for PPP projects. Five projects to be declared as role model projects. An example of a pilot project targeted to receive funding support under this scheme is renewable energy projects. 134. Following the consultation and further revision on the ESMF, World Bank has disclosed the ESMF into the MOF and World Bank website (Infoshop) on January 28, 2016. 6.0 INSTITUTIONAL ASSESSMENT AND REQUIRED CAPACITY BUILDING PROGRAM 6.1 INSTITUTIONAL CAPACITY REQUIREMENT 135. Implementation of this ESMF within the PPP Unit will require human resources with adequate knowledge on the Indonesian standard and other requirements. Based on preliminary assessment to the PPP unit of the MOF and since this unit still newly established the capacity for safeguards implementation of this ESMF is still low. 136. The requirements of human resources within the PPP Unit at least but not limited to:  Environmental Specialist. The specialist should be familiar with the Indonesian ES regulations, especially related to AMDAL/UKL-UPL. It will be ideal if the specialist has the AMDAL Team Leader certificate from the Ministry of Environment and Forestry and has considerable experience in conducting AMDAL for infrastructure project. The specialist should also familiar with the World Bank Safeguard Policies and have the experience in using the Safeguard in Environmental Assessment; and  Social Specialist. The social specialist should be familiar with social issues in Indonesia, understanding relevant regulations related to land acquisition, social impact assessment, public participation, and indigenous people. The specialist should also familiar with the World Bank Standard and have used it in social studies in Indonesia. 6.2 CAPACITY BUILDING PROGRAM 137. As the PPP Unit is a new team within the MOF, it is important to ensure that the team has adequate capacity to support the IIFD and to implement the ESMF. Capacity development program needs to be implemented for the PPP Unit (once every 6 months), which will include at least but not limited to:  Understanding the ESMF. ESMF is the main reference for PPP Unit to ensure that IIFD will be in compliance with the government regulation and World Bank Standard. Once ESMF is finalized, and PPP Unit team is established, a training on the ESMF is urgently required; ESMF for IIFD 5 2  General Environmental and Social Awareness. It is important to ensure the same level of understanding among members in the PPP Unit. General ES Awareness training will cover: Current environmental and social issues relevant to infrastructure development, regulation framework related to environment and social, general environmental management and monitoring plan, land acquisition issues and implementation in Indonesia. 6.3 MONITORING AND EVALUATION OF SAFEGUARDS IMPLEMENTATION 138. WB will supervise and monitor the Project (only for the Preparation and Transaction Phase) in line with its standard operating procedures for project performance monitoring and will carry out regularly scheduled internal reviews. The purpose of these internal reviews is to assess the likelihood of achieving the objectives and identify areas of improvement, and course-correct if required. Reporting on safeguards performance will be included in the Project’s common reporting documents, and shall be done no less than twice a year. 139. The WB Task Team will conduct supervision missions of the Project and the PPP Unit on a regularly scheduled basis. The PPP Unit will submit to the WB on a regularly scheduled basis an annual work plan and budget plan describing activities throughout the year in line with the four Project Components. The PPP Unit will submit on a regularly scheduled basis the updated procurement plans and Quarter Project Reports (QPR) that report in a structured manner the activities and progress made by the PPP Unit, which the WB Task Team will review and discuss during the supervision missions. 7.0 BUDGET AND TIMELINE FOR ESMF IMPLEMENTATION 140. Implementation of ESMF will require several activities and program, which will include:  ESMF Dissemination Workshop. Once the ESMF has been approved, promotion and dissemination activities shall be developed within the MOF to present this tool that should be fully applied once formally introduced in the PPP Unit. In addition to a number of internal workshops that will be developed, a workshop with the different Environmental Authorities is also envisaged to let them know the tool. Publication has also been considered to facilitate its use.  ESMF Publishing and Promotion: The ESMF shall be published to let it known within the MOF, especially PPP Unit and across the Environmental Entities. The tool will also be posted on the WB and MOF website and intranet. The material will also be reproduced for the development of the above mentioned workshops.  Internal ESMF Training: Concession projects cover several issues linked with environmental and social management that are worth disclosing within the institution so that PPP Unit staff can become aware of the subject. Issues like the environmental liabilities and involuntary resettlement as well as Indigenous Peoples must undoubtedly be especially considered in the types of projects promoted by the agency. At least two workshops/training should be conducted every year about topics that will be decided as required. ESMF for IIFD 5 3 141. PPP Unit will also require supporting tools and instrument in order to well functioned to support the IIFD. These supporting tools will include:  Computation Equipment and Others: PPP Unit shall purchase basic equipment to start working, such as camera, computers/laptop, printer, scanner, and others. Transportation means shall be required for the work onsite.  Technical Support for the Use of IT and Geographic Information System: The purchase of software with basic information is required to conduct analysis based on secondary geo- referenced data, determine the Project Classification, and anticipate the needs of studies according to the environmental and social risks involved. The consultancy services of an expert on the subject will be required to help install the system. If no secondary digital information is available to feed the Information System, the scope of this technical assistance will be revised. 142. The estimates on the above program/activities is presented in the Table below: Table 11 Estimated cost for the ESMF implementation (once every 6 months). Activities Amount (US$) I. Promotion and Dissemination Activities 1. ESMF Dissemination Workshops 15,000 2. ESMF Publishing and Promotion 20,000 II. Workshops for Training on Specific Management Issues 1. Internal Training Workshop s 20,000 III. Equipment and Workplace Requirements 1. Computation Equipment and Others 35,000 2. Technical Support for Using the Geographic Information System 45,000 TOTAL 135,000 ESMF for IIFD 5 4 APPENDICES Appendix A1 Screening Form APPENDIX A1 SCREENING FORM Steps for Project application screening procedures is listed below: Name of the Project Project location Sector Project Condition (X) New green field project New brown field project Project in the construction phase Project construction completed Available data in the Pre FS and/or FS document available package (X) AMDAL/UKL-UPL/LARAP/IPP available No initial data Screening #1: Project Eligibility Is the project included in Please check with Annex 1: Exclusion List the Exclusion List? (Y/N) Note: If the answer is YES, screening is stopped and should not be continued (project application will be rejected) Screening #2: Project Categorization based on the Likely of Environmental and Social Impacts Brief Description of Project Please provide information on the type and scale of project (project area, area of required land, approximate size of total building floor areas, etc.): The Natural Environment Please describe in general the condition of project area (land cover, existence of forest/natural vegetation, adjacent to protected areas, existence of water body – rivers, lake, coastal, rural/urban, closest settlement) Likely Impact on Do you think the project will have major/significant impact to the Environmental and Social environmental and social (changes on landscape, clearing of natural vegetation, major engineering work – river diversion, dam, potential environmental contamination, the use of hazardous materials, potentially will displace people, existence of indigenous peoples- KepMenLH 05/2012 Appendix 1 about screening criteria environmental and social impacts): Conclusion of Project Please refer to the Annex 2: Project Categorization Category (A/B/C/F1) Screening #3: WB Safeguard Assessment Based on Screening #2, do you think the If the answer is YES, OP/BP 4.01 project will need full ES impact assessment Environmental Assessment is triggered (Y/N) Are there any sensitive natural habitat If the answer is YES, OP/BP 4.04 Natural (forest, riverine, coastal, peat land) areas or Habitat and OP/BP 4.36 Forest are triggered threatened species that could be adversely affected by the project? (Y/N) Do you think that there are cultural or If the answer is YES, OP/BP 4.11 Physical historical value in the project area and that Cultural Resources is triggered the project will potentially affect its value and existence? (Y/N) ESMF for IIFD A1-1 Do you think that there is traditional If the answer is YES, OP/BP 4.10 Indigenous community group (masyarakat Peoples is triggered adat/indigenous people) live and occupy certain territory within and around project area? (Y/N) Does the project will potentially affect to the If the answer is YES, OP/BP 4.12 Involuntary land and/or displace project affected people, Resettlement is triggered and that involuntary resettlement will likely be occurred? (Y/N) Is the project located in the border of two If the answer is YES, OP/BP 7.50 Projects on states and that natural boundary (river, lake, International Waterways is triggered shoreline) is used? (Y/N) Does the project location clear and clean (no If the answer is YES, OP/BP 7.60 Projects in disputes, no outstanding/unsolved claim on Disputed Areas is triggered the land, land has more than one owners)? (Y/N) Will the project affect farmers in using If the answer is YES, OP/BP 4.09 Pest pesticide? Or does the project potentially will Management is triggered have an impact on occurrence of agriculture pest/diseases (e.g., monoculture plant)? (Y/N) Does the project involve small dam/large If the answer is YES, OP/BP 4.37 Safety of dam, dam extension construction? (Y/N) Dam is triggered Summary of Applicable OP/BP 4.01 Environmental Assessment WB SG (X) OP/BP 4.04 Natural Habitat For completed list of WB Safeguard Policies, please OP/BP 4.10 Indigenous Peoples see Annex 3: World Bank OP/BP 4.11 Physical Cultural Resources Safeguard Policies OP/BP 4.36 Forest OP/BP 4.37 Safety of Dam OP/BP 4.12 Involuntary Resettlement OP/BP 7.50 Project on International Waterways Annex 1: Exclusion List Exclusions List 1. Any activity with the use of radioactive materials 2. Drift net fishing in the marine environment 3. Introduction of genetically engineered organisms 4. Gambling, casinos and equivalent enterprises 5. Mining or excavation of live coral 6. Commercial logging operations for use in primary tropical moist forest. 7. Production or trade in wood or other forestry products from unmanaged forests 8. Purchase of logging equipment for use in primary tropical moist forest. 9. Production of lead paints 10. Production or trade in tobacco 11. Production or trade in radioactive materials. 12. Production or trade in products containing PCBs 13. Production or trade in alcoholic beverages 14. Production or trade in weapons and munitions. ESMF for IIFD A1-2 15. Production and/or use of asbestos containing products 16. Production, distribution and sale of illegal pesticides 17. Production or trade in or use of unbonded asbestos fibers 18. Production or trade in ozone depleting substances subject to international phase out 19. Production or trade in pharmaceuticals subject to international phase outs or bans. 20. Production or trade in pesticides/herbicides subject to international phase outs or bans. 21. Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements 22. Production or activities involving harmful or exploitative forms of forced labour/harmful child labour 23. Production, trade, storage, or transport of significant volumes of hazardous chemicals, or commercial scale usage of hazardous chemicals 24. Production or activities that impinge on the lands owned, or claimed under adjudication, by Indigenous Peoples, without full documented consent of such peoples 25. Trade in wildlife or wildlife products Annex 2: Project Categorization Category A A proposed project is classified as Category A if it is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. Project Category A will require a detailed EIA document; or AMDAL. Category B A proposed project is classified as Category B if the potential adverse environmental impacts on human populations or environmentally important areas—including wetlands, forests, grasslands, and other natural habitats – are less adverse than those of Category A projects. These impacts are site‐specific; few if any of them are irreversible; and in most cases mitigation measures can be designed more readily than for Category A projects. Project Category B, will require Environmental Management Plan Category C A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Category FI A proposed project is classified as Category FI if it involves investment of Bank funds through a financial intermediary, in sub projects that may result in adverse environmental impacts. Project Category F1 will require an Environmental and Social Framework. ESMF for IIFD A1-3 Annex 3: World Bank Safeguard Policies No. OP/BP Safeguard Policy Objectives 1. 4.01 Environmental Help ensure the environmental and social soundness and Assessment sustainability of investment projects. Support integration of environmental and social aspects of projects in the decision- making process. 2. 4.04 Natural Habitats Promote environmentally sustainable development by supporting the protection, conservation, maintenance, and rehabilitation of natural habitats and their functions. 3. 4.09 Pest Minimize and manage the environmental and health risks Management associated with pesticide use and promote and support safe, effective, and environmentally sound pest management. 4. 4.11 Physical Assist in preserving PCR and in avoiding their destruction or Cultural damage. PCR includes resources of archeological, Resources paleontological, historical, architectural, religious (including graveyards and burial sites), aesthetic, or other cultural significance. 5. 4.12 Involuntary Avoid or minimize involuntary resettlement and, where this is not Resettlement feasible, assist displaced persons in improving or restoring their livelihoods and standards of living in real terms relative to pre- displacement levels or to levels prevailing prior to the beginning of project, whichever is higher. 6. 4.20 Indigenous Design and implement projects in a way that fosters full respect for People indigenous peoples’ dignity, human rights, and cultural uniqueness and so that they (1) receive culturally compatible social and economic benefits, and (2) do not suffer adverse effects during the development process. 7. 4.36 Forests Realize the potential of forests to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development, and protect the vital local and global environmental services and values of forests. 8. 4.37 Safety of Dam Ensure quality and safety in the design and construction of new dams and the rehabilitation of existing dams, and in carrying out activities that may be affected by an existing dam. 9. 7.50 Projects on Ensure that the international aspects of a project on an International international waterway are dealt with at the earliest possible Waterways opportunity and that riparian are notified of the proposed project and its details. 10. 7.60 Projects in Ensure that other claimants to the disputed area have no objection Disputed Areas to the project, or that the special circumstances of the case warrant the Bank’s support of the project notwithstanding any objection or lack of approval by the other claimants. ESMF for IIFD A1-4 Appendix A2 Feasibility Study TOR POWER SECTOR 1. Background Under the Ministry of Finance (MoF), The PPP Unit makes available the IIFDTF funding support for 5 proposed PPP projects as pilots to support the development of the project Feasibility Study (FS) and enable the project to be brought to market for financing. As such, this Terms of Reference (TOR) is prepared for integrating the preliminary Environmental and Social (ES) assessment of the project into the FS. The TOR FS is sector specific and provides guidance on the ES aspects that needs to be considered to assure ES needs are understood and defined at the FS development stage. 2. Objective Apart from the design, technical, economic and financial analysis, and as part of the overall objective of an FS, the FS TOR should include a preliminary assessment on the project’s potential ES and land acquisition impacts, recommendations and estimated costs for possible mitigation measures. 3. Applicable Government Legislations and World Bank Safeguards The ES preliminary assessment should include a review or screening of the requirements and application of relevant ES Government of Indonesia (GoI) legislations and World Bank Safeguards (WBS) that are applicable to the PPP Project. The following lists the key GoI legislations and WBS related to ES aspects for the transportation sector: Regulations on Public-Private Partnership (PPP or KPBU – Kerjasama Pemerintah dan Badan Usaha):  President Regulation No. 38 Year 2015 regarding Government Cooperation With Private Sector for the Provision of Infrastructure; and  Ministry of National Development Planning/Head of Bappenas Regulation No.4Year2015on Procedures for the Implementation of Public Private Partnership for the Provision of Infrastructure. Environmental and Social Legislations related to the Power Sector:  Law No. 32 Year 2009 regarding Environmental Protection and Environmental Management;  Government Regulation No. 27 Year 2012 regarding Environmental Permit;  Government Regulation No. 41 Year 1999 regarding Control of Air Pollution;  Government Regulation No. 82 Year 2001 regarding Management of Water Quality and Water Pollution Control;  Government Regulation No. 101 Year 2014 regarding Management of Hazardous Waste;  Ministry of the Environment Regulation No. 05 Year 2012 regarding Types of Business and/or Activities that are Mandatory to have Environmental Impact Assessment (AMDAL);  Ministry of the Environment Regulation No. 12 Year 2010 regarding Implementation of Air Pollution Control at District Level;  Ministry of Environment Regulation No. 5 Year 2014 regarding Wastewater Quality Standard; ESMF for IIFD A2-1  Ministry of Environment Decree No. 13 Year 1995 regarding Emission Quality Standards for Stationary Sources; and  Ministry of Environment Decree No. KEP-48/MENLH/11/1996 regarding Noise Level Standards. Key Legislations on Land Acquisition:  Law No. 5 Year 1960 regarding the Agrarian Basic Principles;  Law No. 2 Year 2012 regarding Land Acquisition for the Development of Facilities for Public Use  President Regulation No. 36 Year 2005 regarding Land Acquisition for the Development of Facilities for Public Use;  President Regulation No. 65 Year 2006 regarding Change to President Regulation No. 36 Tahun 2005 regarding Land Acquisition for the Development of Facilities ;  President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  President Regulation No. 40 Year 2014 regarding Change to President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  President Regulation No 99 Year 2014 regarding Second Change to President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  President Regulation No. 30 Tahun 2015 regarding Third Change to President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  Head of National Land Agency (BPN) Regulation No. 3 Year 2007 regarding Implementation of the provisions of Presidential RegulationNo.36 of 2005as amended by Presidential RegulationNo.65 of 2006.  Regulation of Ministry of Forest No. P.39/Menhut-II/2013 regarding Local communities empowerment through World Bank Safeguards (WBS):  OP/BP 4.01 - Environmental Assessment;  OP/BP 4.04 - Natural Habitats;  OP/BP 4.10 - Indigenous Peoples  OP/BP 4.11 - Physical Cultural Resources;  OP/BP 4.12 - Involuntary Resettlement;  OP 4.37 - Safety of Dams;  IFC General Environmental Health and Safety (EHS) Guidelines;  IFC EHS Guidelines for Wind Energy;  IFC EHS Guidelines for Geothermal Power Generation;  IFC EHS Guidelines for Electric Power Transmission and Distribution;  IFC EHS Guidelines for Thermal Power; ESMF for IIFD A2-2 4. Scope of Work The minimum scope of work for the preliminary assessment of key ES aspects includes the following:  Review of ES and land acquisition regulatory and permitting requirements that are applicable to the PPP Project;  Overlaying maps for assessing the project location and putting forward recommendations in relation to National and/or Regional Development, in the context of: o Alignment with the National Policy and Strategic plan as indicated by the Map on Deferment of New Project Licenses (Peta Indikatif Penundaan Izin Baru - PIPIB) or Moratorium Map; o Alignment with the National and/or Regional Spatial Plan(s) specifying protected areas and land designated for other use (Area Penggunaan Lain – APL); and o Assessment on whether the project is located on or goes through government protected areas. Note: Updated map for PIPIB can be sourced at http://appgis.dephut.go.id/appgis/petamoratorium.html while map on spatial plans can be sourced from the Ministry of Public Works website, http://sigperda.penataanruang.net/ or http://rtrwn.penataanruang.net/Atribut.aspx;  Based on the Ministry of Environment Regulation No. 05/2012, screening of PPP Project to determine the type of environmental document that is required (AMDAL or UKL-UPL) as prerequisite for obtaining the environmental permit or license for the project. Project screening refers to Appendix 1 of the regulation. For the power sector, AMDAL is mandatory for the developments of high voltage overhead transmission lines and underwater high voltage transmission lines with a capacity of 150 kV; Diesel, Gas and Steam turbine generators with a capacity of ≥ 100 MW (in one location); Geothermal turbine generators with a capacity of ≥ 55 MW; Hydropower plants with a dam height of ≥ 15 m or area of water reservoir of ≥ 200 Ha or production capacity (direct flow) of ≥ 50 MW; Power plants using waste as fuel (Methane Harvesting) with a capacity of ≥ 30 MW; and other power plants such as solar power, wind power, biomass/peat fuel driven, tidal power with a capacity of ≥ 10 MW (in one location). Power projects having a scale smaller than the mentioned, will need to develop a UKL-UPL study;  Initial environmental permitting plan on schedule, estimated cost and party responsible for developing the required environmental document and obtaining the environmental permit;  Preliminary assessment and recommended mitigation measures on potential environmental and social impacts of the PPP Project based on recent and available data of the baseline conditions. The mitigation measures may include development of specific management plans or other studies. The preliminary assessment also includes the estimated cost(s) for the mitigation measures. The potential ES impacts may include impacts or changes to the following: o Air quality; o Water quality; o Soil quality; o Noise levels; o Hydrology or Oceanography; o Biodiversity (flora and fauna) and natural habitats; o Occupational and Community Health and Safety; o Socio-economic conditions; ESMF for IIFD A2-3 o Land ownership and land use; o Indigenous peoples; and o Cultural heritage sites.  Specific initial studies for power projects include, but not limited to the following: o Assessment on the impact of noise from the power plant to adjacent settlements and possible mitigation efforts such as selection of technology, installation of barriers or plants to reduce noise. o Assessment on the impact to air pollution caused by stack and fugitive emissions from the power plant during the construction and operation phases, as well as possible mitigation efforts, which may include selection of the best technology for reducing stack emissions and management of material stockpiles to reduce fugitive dust. o Initial calculation on Green House Gas Emissions (GHG) and programs for reducing emissions. The calculation of GHG emissions can refer to the http://apki.net/wp-content/uploads/2013/05/Draft-Petunjuk-Teknis-Penghitungan- Emisi-GRK-di-Sektor-industri.pdf. o Assessment on the impact of cooling water discharge to the receiving water bodies during power plant operations, as well as possible mitigation efforts such as selection of best technology for reducing water pollution. o Assessment on the impact of large volumes of raw water withdrawal for the once- through cooling system, particularly the impact on the continual supply of water for ecological functions and use of water by adjacent community, as well as possible mitigation efforts such as technology selection for the cooling process system. o When the project involves dredging for the construction of ports (seabed or river dredging), assessment on the impact of dredging to water bodies and the possible mitigation efforts. o When the project involves restricting natural flow or construction of dams, assessment on the impacts of the dam on the river flow and the ecological functions of the river and potential conflict over water use with the community. o When applicable, assessment on the impact of fly ash and bottom ash storage and handling on soil and groundwater, as well as possible mitigation measures for the management of hazardous wastes. o Assessment on potential earthquake hazards in the project location. Review of project location based on Map of Indonesian Earthquake Zones, http://puskim.pu.go.id/peta-zonasi-gempa/ and determine the risk of damages caused by earthquake on the power plant; and/or o Assessment on the impact caused by high voltage power transmission lines and possible mitigation efforts in terms of technology selection. ESMF for IIFD A2-4  Initial desktop study on stakeholder mapping for the PPP project to identify all stakeholders, their level of interest and authority over the project;  Initial desktop study on land acquisition, which include: o Estimated land area required for the PPP Project based on design data; o Initial identification of land ownership and identification of any potential risks related to the land acquisition process. Land ownership include: land under the management of the Minister of Environment and Forestry, land used for religious purposes (Tanah Wakaf), land owned by village authority (tanah carik atau desa) or other government owned land such as land used for public school and/or public facilities, and land under traditional rights or land owned by indigenous peoples or land that has cultural values; o Initial identification for any potential voluntary or involuntary relocation of houses or settlements and/or squatters, and development of resettlement action plan that includes mitigation measures; o Assessment of any land acquisition document or activity which may have already been executed and identification of potential risks and mitigation measures; o Determine party responsible for executing the land acquisition and/or resettlement activities; and o Estimated costs and timeline for developing the land acquisition document as required by regulations and executing the land acquisition activities that may include resettlement. 5. General Methodology The general approach to the methodology for the preliminary ES assessment for the FS is performing a desktop study based on recent and available data that is sourced from reliable and trustworthy sources such as other scientific studies and literatures, and meetings and discussions with experts. When secondary data is not available, reasonable efforts should be made to collect primary data from the field for the assessment. The field surveys should be designed to meet the purpose of the preliminary ES assessment and do not substitute baseline surveys required for a full environmental impact assessment (i.e. AMDAL or UKL-UPL). 6. Expected Outputs The expected output of the preliminary ES assessment of the PPP project is a written section of the FS report, which includes the following:  Review of GoI legislations and WBS applicable to the PPP Project and identification of required permits or licenses and valued environmental components that are relevant;  Review of project location in context of National and Regional Spatial Plans and Protected Areas, and include any recommendations for obtaining land clearance;  Environmental Permitting Plan which describes the cost for developing the AMDAL or UKL- UPL and obtaining the environmental permit for the PPP Project.  Preliminary ES assessment and mitigation measures which may include recommendations for additional studies. Mitigation measures should include an estimation of the costs. The preliminary ES assessment does not substitute an AMDAL or UKL-UPL for the project.  Summary of stakeholder mapping including description of their level of interest and authority on the PPP Project; and  Preliminary assessment on land acquisition, which includes identification of land ownership, land acquisition process and documents, and any requirements for resettlement including proposed action plans and estimated costs. ESMF for IIFD A2-5 7. Experts The main experts, which will be required for performing the preliminary ES assessment for the FS, include the following:  Environmental experts which include air quality, water quality, biodiversity (flora and fauna) experts;  Health and safety expert;  Socio-economic expert;  Socio-cultural expert; and  Land acquisition expert. 8. Timeline The timeline for performing the preliminary ES assessment depends on the nature and scale of the PPP Project. It is estimated that the development of the preliminary ES assessment for the FS is completed within 3 (three) to 6 (six) months. ESMF for IIFD A2-6 TRANSPORTATION SECTOR 1. Background Under the Ministry of Finance (MoF), The PPP Unit makes available the IIFDTF funding support for 5 proposed PPP projects as pilots to support the development of the project Feasibility Study (FS) and enable the project to be brought to market for financing. As such, this Terms of Reference (TOR) is prepared for integrating the preliminary Environmental and Social (ES) assessment of the project into the FS. The TOR FS is sector specific and provides guidance on the ES aspects that needs to be considered to assure ES needs are understood and defined at the FS development stage. 2. Objective Apart from the design, technical, economic and financial analysis, and as part of the overall objective of an FS, the FS TOR should include a preliminary assessment on the project’s potential ES and land acquisition impacts, recommendations and estimated costs for possible mitigation measures. 3. Applicable Government Legislations and World Bank Safeguards The ES preliminary assessment should include a review or screening of the requirements and application of relevant ES Government of Indonesia (GoI) legislations and World Bank Safeguards (WBS) that are applicable to the PPP Project. The following lists the key GoI legislations and WBS related to ES aspects for the transportation sector: Regulations on Public-Private Partnership (PPP or KPBU – Kerjasama Pemerintah dan Badan Usaha):  President Regulation No. 38 Year 2015 regarding Government Cooperation With Private Sector for the Provision of Infrastructure; and  Ministry of National Development Planning/Head of Bappenas Regulation No.4Year2015on Procedures for the Implementation of Public Private Partnership for the Provision of Infrastructure. Environmental and Social Legislations related to the Transportation Sector:  Law No. 32 Year 2009 regarding Environmental Protection and Environmental Management;  Government Regulation No. 27 Year 2012 regarding Environmental Permit;  Government Regulation No. 41 Year 1999 regarding Control of Air Pollution;  Ministry of the Environment Regulation No. 05 Year 2012 regarding Types of Business and/or Activities that are Mandatory to have Environmental Impact Assessment (AMDAL);  Ministry of the Environment Regulation No. 12 Year 2010 regarding Implementation of Air Pollution Control at District Level; and  Ministry of Environment Decree No. KEP-48/MENLH/11/1996 regarding Noise Level Standards. Key Legislations on Land Acquisition:  Law No. 5 Year 1960 regarding the Agrarian Basic Principles;  Law No. 2 Year 2012 regarding Land Acquisition for the Development of Facilities for Public Use ESMF for IIFD A2-7  President Regulation No. 36 Year 2005 regarding Land Acquisition for the Development of Facilities for Public Use;  President Regulation No. 65 Year 2006 regarding Change to President Regulation No. 36 Tahun 2005 regarding Land Acquisition for the Development of Facilities ;  President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  President Regulation No. 40 Year 2014 regarding Change to President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  President Regulation No 99 Year 2014 regarding Second Change to President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  President Regulation No. 30 Tahun 2015 regarding Third Change to President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  Head of National Land Agency (BPN) Regulation No. 3 Year 2007 regarding Implementation of the provisions of Presidential RegulationNo.36 of 2005as amended by Presidential RegulationNo.65 of 2006.  Regulation of Ministry of Forestry No. P.39/Menhut-II/2013 regarding local communities empowerment through forest partnership. World Bank Safeguards (WBS):  OP/BP 4.01 - Environmental Assessment;  OP/BP 4.04 - Natural Habitats;  OP/BP 4.10 - Indigenous Peoples  OP/BP 4.11 - Physical Cultural Resources;  OP/BP 4.12 - Involuntary Resettlement;  IFC General Environmental Health and Safety (EHS) Guidelines;  IFC EHS Guidelines for Railways;  IFC EHS Guidelines for Ports, Harbors, and Terminals;  IFC EHS Guidelines for Airports; and  IFC EHS Guidelines for Toll Roads; 4. Scope of Work The minimum scope of work for the preliminary assessment of key ES aspects includes the following:  Review of ES and land acquisition regulatory and permitting requirements that are applicable to the PPP Project;  Overlaying maps for assessing the project location and putting forward recommendations in relation to National and/or Regional Development, in the context of: o Alignment with the National Policy and Strategic plan as indicated by the Map on Deferment of New Project Licenses (Peta Indikatif Penundaan Izin Baru - PIPIB) or Moratorium Map; ESMF for IIFD A2-8 o Alignment with the National and/or Regional Spatial Plan(s) specifying protected areas and land designated for other use (Area Penggunaan Lain – APL); and o Assessment on whether the project is located on or goes through government protected areas. Note: Updated map for PIPIB can be sourced at http://appgis.dephut.go.id/appgis/petamoratorium.html while map on spatial plans can be sourced from the Ministry of Public Works website, http://sigperda.penataanruang.net/ or http://rtrwn.penataanruang.net/Atribut.aspx;  Based on the Ministry of Environment Regulation No. 05/2012, screening of PPP Project to determine the type of environmental document that is required (AMDAL or UKL-UPL) as prerequisite for obtaining the environmental permit or license for the project. Project screening refers to Appendix 1 of the regulation. For the transportation sector, AMDAL is mandatory for the developments of above ground railways with a length of ≥ 25 km; underground railways for all lengths; elevated railways with a length of ≥ 5 km; construction of passenger terminals with an area of ≥ 5 Ha; dredging of water bodies with a dredged volume ≥ 500.000 m3; dredging of water bodies that include cutting of rock boulder (non coral) with a volume ≥ 250.000 m3 or any scale if using explosives; dumping of dredged material at sea with a volume of ≥ 500.000 m3 or size of dumping area of ≥ 5 Ha; ports involving construction of piles with a length of ≥ 200 m or area of ≥ 6.000 m2; massive port construction for all scales; construction of breakwaters wi th a length of ≥ 200 m; construction of floating facility ≥ 10.000 DWT; construction of airports for fixed wing aircrafts with a runway length of > 1.200 m or construction of passenger terminals or cargo terminals with an area of > 10.000 m2. Transportation projects having a scale smaller than the mentioned, will need to develop a UKL-UPL study;  Initial environmental permitting plan on schedule, estimated cost and party responsible for developing the required environmental document and obtaining the environmental permit;  Preliminary assessment and recommended mitigation measures on potential environmental and social impacts of the PPP Project based on recent and available data of the baseline conditions. The mitigation measures may include development of specific management plans or other studies. The preliminary assessment also includes the estimated cost(s) for the mitigation measures. The potential ES impacts may include impacts or changes to the following: o Air quality; o Water quality; o Noise levels; o Hydrogeology; o Biodiversity (flora and fauna) and natural habitats; o Traffic conditions; o Occupational and Community Health and Safety; o Socio-economic conditions; o Land ownership and land use; o Indigenous peoples; and o Cultural heritage sites.  Specific initial studies for transportation projects include, but not limited to the following: o Assessing noise levels along the transportation corridor (road or railway) and assessing potential impacts on nearby settlements based on ambient noise level standards and put forward possible mitigation measures such as technology selection, procurement of buildings or plants to reduce noise; ESMF for IIFD A2-9 o Potential impacts arising from air pollution caused by the project activities during the construction and operation phases, as well as mitigation efforts that can be done. Parameters for air pollution include Total Suspended Particles, SOx, NOx, CO, HC; o Social impacts arising from reduced access or mobility due to transportation corridor (affected persons and/or fauna can not cross the road or railway) and possible mitigation efforts; o Socio-economic impacts arising from the influx or increase of incoming and outgoing people to and from the project site, as well as possible mitigation efforts; o Potential impacts to hydrological systems and local irrigation and drainage systems, which may cause water inundations restriction of water flows, as well as possible mitigation efforts; o Potential impacts arising from large topographic profile changes such as tunneling, which may affect the local catchment area or hydrological system, and the possible mitigation efforts; and/or o Potential dredging impacts arising from construction of ports and possible mitigation measures.  Initial desktop study on stakeholder mapping for the PPP project to identify all stakeholders, their level of interest and authority over the project;  Initial desktop study on land acquisition, which include: o Estimated land area required for the PPP Project based on design data; o Initial identification of land ownership and identification of any potential risks related to the land acquisition process. Land ownership include: land under the management of the Minister of Environment and Forestry, land used for religious purposes (Tanah Wakaf), land owned by village authority (tanah carik atau desa) or other government owned land such as land used for public school and/or public facilities, and land under traditional rights or land owned by indigenous peoples or land that has cultural values; o Initial identification for any potential voluntary or involuntary relocation of houses or settlements and/or squatters, and development of resettlement action plan that includes mitigation measures; o Assessment of any land acquisition document or activity which may have already been executed and identification of potential risks and mitigation measures; o Determine party responsible for executing the land acquisition and/or resettlement activities; and o Estimated costs and timeline for developing the land acquisition document as required by regulations and executing the land acquisition activities that may include resettlement. 5. General Methodology The general approach to the methodology for the preliminary ES assessment for the FS is performing a desktop study based on recent and available data that is sourced from reliable and trustworthy sources such as other scientific studies and literatures, and meetings and discussions with experts. When secondary data is not available, reasonable efforts should be made to collect primary data from the field for the assessment. The field surveys should be designed to meet the purpose of the preliminary ES assessment and do not substitute baseline surveys required for a full environmental impact assessment (i.e. AMDAL or UKL-UPL). ESMF for IIFD A2-10 6. Expected Outputs The expected output of the preliminary ES assessment of the PPP project is a written section of the FS report, which includes the following:  Review of GoI legislations and WBS applicable to the PPP Project and identification of required permits or licenses and valued environmental components that are relevant;  Review of project location in context of National and Regional Spatial Plans and Protected Areas, and include any recommendations for obtaining land clearance;  Environmental Permitting Plan which describes the cost for developing the AMDAL or UKL- UPL and obtaining the environmental permit for the PPP Project.  Preliminary ES assessment and mitigation measures which may include recommendations for additional studies. Mitigation measures should include an estimation of the costs. The preliminary ES assessment does not substitute an AMDAL or UKL-UPL for the project.  Summary of stakeholder mapping including description of their level of interest and authority on the PPP Project; and  Preliminary assessment on land acquisition, which includes identification of land ownership, land acquisition process and documents, and any requirements for resettlement including proposed action plans and estimated costs. 7. Experts The main experts, which will be required for performing the preliminary ES assessment for the FS, include the following:  Environmental experts which include air quality, water quality, biodiversity (flora and fauna) experts;  Health and safety expert;  Socio-economic expert;  Socio-cultural expert; and  Land acquisition expert. 8. Timeline The timeline for performing the preliminary ES assessment depends on the nature and scale of the PPP Project. It is estimated that the development of the preliminary ES assessment for the FS is completed within 3 (three) to 6 (six) months. ESMF for IIFD A2-11 WASTE SECTOR 1. Background Under the Ministry of Finance (MoF), The PPP Unit makes available the IIFDTF funding support for 5 proposed PPP projects as pilots to support the development of the project Feasibility Study (FS) and enable the project to be brought to market for financing. As such, this Terms of Reference (TOR) is prepared for integrating the preliminary Environmental and Social (ES) assessment of the project into the FS. The TOR FS is sector specific and provides guidance on the ES aspects that needs to be considered to assure ES needs are understood and defined at the FS development stage. 2. Objective Apart from the design, technical, economic and financial analysis, and as part of the overall objective of an FS, the FS TOR should include a preliminary assessment on the project’s potential ES and land acquisition impacts, recommendations and estimated costs for possible mitigation measures. 3. Applicable Government Legislations and World Bank Safeguards The ES preliminary assessment should include a review or screening of the requirements and application of relevant ES Government of Indonesia (GoI) legislations and World Bank Safeguards (WBS) that are applicable to the PPP Project. The following lists the key GoI legislations and WBS related to ES aspects for the transportation sector: Regulations on Public-Private Partnership (PPP or KPBU – Kerjasama Pemerintah dan Badan Usaha):  President Regulation No. 38 Year 2015 regarding Government Cooperation With Private Sector for the Provision of Infrastructure; and  Ministry of National Development Planning/Head of Bappenas Regulation No.4Year2015on Procedures for the Implementation of Public Private Partnership for the Provision of Infrastructure. Environmental and Social Legislations related to the Waste Sector:  Law No. 32 Year 2009 regarding Environmental Protection and Environmental Management;  Government Regulation No. 27 Year 2012 regarding Environmental Permit;  Government Regulation No. 81 Year 2012 regarding Management of Household Waste and Other Similar Wastes;  Government Regulation No. 82 Year 2001 regarding Management of Water Quality and Water Pollution Control;  Government Regulation No. 41 Year 1999 regarding Control of Air Pollution;  Government Regulation No. 101 Year 2014 regarding Management of Hazardous Waste;  Ministry of the Environment Regulation No. 05 Year 2012 regarding Types of Business and/or Activities that are Mandatory to have Environmental Impact Assessment (AMDAL);  Ministry of Environment Regulation No. 5 Year 2014 regarding Wastewater Quality Standard; ESMF for IIFD A2-12  Ministry of the Environment Regulation No. 12 Year 2010 regarding Implementation of Air Pollution Control at District Level;  Ministry of Public Works Regulation No. 21/PRT/M/2006 regarding Policy and National Strategy on Development of Waste Management System;  Ministry of Environment Decree No. 50 Year 1996 regarding Odor Level Standards;  Ministry of Environment Decree No. 13 Year 1995 regarding Emission Quality Standards for Stationary Sources; and  Ministry of Environment Decree No. KEP-48/MENLH/11/1996 regarding Noise Level Standards. Key Legislations on Land Acquisition:  Law No. 5 Year 1960 regarding the Agrarian Basic Principles;  Law No. 2 Year 2012 regarding Land Acquisition for the Development of Facilities for Public Use  President Regulation No. 36 Year 2005 regarding Land Acquisition for the Development of Facilities for Public Use;  President Regulation No. 65 Year 2006 regarding Change to President Regulation No. 36 Tahun 2005 regarding Land Acquisition for the Development of Facilities ;  President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  President Regulation No. 40 Year 2014 regarding Change to President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  President Regulation No 99 Year 2014 regarding Second Change to President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  President Regulation No. 30 Tahun 2015 regarding Third Change to President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  Head of National Land Agency (BPN) Regulation No. 3 Year 2007 regarding Implementation of the provisions of Presidential RegulationNo.36 of 2005as amended by Presidential RegulationNo.65 of 2006. World Bank Safeguards (WBS):  OP/BP 4.01 - Environmental Assessment;  OP/BP 4.04 - Natural Habitats;  OP/BP 4.36 - Forests;  OP/BP 4.09 - Pest Management;  OP/BP 4.10 - Indigenous Peoples  OP/BP 4.11 - Physical Cultural Resources;  OP/BP 4.12 - Involuntary Resettlement;  OP 4.37 - Safety of Dams;  IFC General Environmental Health and Safety (EHS) Guidelines; ESMF for IIFD A2-13  IFC EHS Guidelines for Waste Management Facilities; 4. Scope of Work The minimum scope of work for the preliminary assessment of key ES aspects includes the following:  Review of ES and land acquisition regulatory and permitting requirements that are applicable to the PPP Project;  Overlaying maps for assessing the project location and putting forward recommendations in relation to National and/or Regional Development, in the context of: o Alignment with the National Policy and Strategic plan as indicated by the Map on Deferment of New Project Licenses (Peta Indikatif Penundaan Izin Baru - PIPIB) or Moratorium Map; o Alignment with the National and/or Regional Spatial Plan(s) specifying protected areas and land designated for other use (Area Penggunaan Lain – APL); and o Assessment on whether the project is located on or goes through government protected areas. Note: Updated map for PIPIB can be sourced at http://appgis.dephut.go.id/appgis/petamoratorium.html while map on spatial plans can be sourced from the Ministry of Public Works website, http://sigperda.penataanruang.net/ or http://rtrwn.penataanruang.net/Atribut.aspx;  Based on the Ministry of Environment Regulation No. 05/2012, screening of PPP Project to determine the type of environmental document that is required (AMDAL or UKL-UPL) as prerequisite for obtaining the environmental permit or license for the project. Project screening refers to Appendix 1 of the regulation. For the waste sector, AMDAL is mandatory for the developments of landfill or sanitary landfill facility with an area of ≥ 10 Ha or total capacity of ≥ 100,000 tons; landfills at tidal areas for all sizes; waste transfer station with a capacity of ≥ 500 tons/day; Integrated Waste Management System with a capacity of ≥ 500 tons/day; waste treatment using incinerator for all sizes; and composting plant with a capacity of ≥ 500 tons/day. Waste projects having a scale smaller than the mentioned, will need to develop a UKL-UPL study;  Initial environmental permitting plan on schedule, estimated cost and party responsible for developing the required environmental document and obtaining the environmental permit;  Preliminary assessment and recommended mitigation measures on potential environmental and social impacts of the PPP Project based on recent and available data of the baseline conditions. The mitigation measures may include development of specific management plans or other studies. The preliminary assessment also includes the estimated cost(s) for the mitigation measures. The potential ES impacts may include impacts or changes to the following: o Air quality and noise; o Soil and Water quality; o Hydrology; o Biodiversity (flora and fauna) and natural habitats; o Occupational and Community Health and Safety; o Socio-economic conditions (including cultural heritage); o Land ownership and land use; and ESMF for IIFD A2-14 o Indigenous peoples.  Specific initial studies for waste projects include, but not limited to the following: o Assessment on the impact of noise from landfill operation and waste to energy activities to adjacent settlements and possible mitigation efforts such as selection of technology, installation of barriers or plants to reduce noise levels. o Assessment on the impact of smell/odour caused by the project on nearby settlements around the project location, potential conflicts as well as possible mitigation efforts. o When applicable, assessment on the impact to air quality caused by emissions from any waste to energy activities, such as incineration (burning) processes utilizing waste as fuel to create steam that powers turbines to generate power. o Assessment on the impact of road traffic in relation to the activities of transporting, handling and collecting waste, as well as possible mitigation efforts. o Assessment on the impact on the collection of hazardous and toxic waste (B3) on soil and water resources at the project location, as well as possible mitigation efforts. o Assessment on the impact of leachate generated by the landfill on soil and groundwater and/or other water sources nearby the project location. o When applicable, assessment on the potential impact on watershed or catchment areas and/or when the project is located in flood-prone areas, as well as possible mitigation efforts such as installation of leachate treatment facility.  Initial desktop study on stakeholder mapping for the PPP project to identify all stakeholders, their level of interest and authority over the project;  Initial desktop study on land acquisition, which include: o Estimated land area required for the PPP Project based on design data; o Initial identification of land ownership and identification of any potential risks related to the land acquisition process. Land ownership include: land under the management of the Minister of Environment and Forestry, land used for religious purposes (Tanah Wakaf), land owned by village authority (tanah carik atau desa) or other government owned land such as land used for public school and/or public facilities, and land under traditional rights or land owned by indigenous peoples or land that has cultural values; o Initial identification for any potential voluntary or involuntary relocation of houses or settlements and/or squatters, and development of resettlement action plan that includes mitigation measures; o Assessment of any land acquisition document or activity which may have already been executed and identification of potential risks and mitigation measures; o Determine party responsible for executing the land acquisition and/or resettlement activities; and o Estimated costs and timeline for developing the land acquisition document as required by regulations and executing the land acquisition activities that may include resettlement. ESMF for IIFD A2-15 5. General Methodology The general approach to the methodology for the preliminary ES assessment for the FS is performing a desktop study based on recent and available data that is sourced from reliable and trustworthy sources such as other scientific studies and literatures, and meetings and discussions with experts. When secondary data is not available, reasonable efforts should be made to collect primary data from the field for the assessment. The field surveys should be designed to meet the purpose of the preliminary ES assessment and do not substitute baseline surveys required for a full environmental impact assessment (i.e. AMDAL or UKL-UPL). 6. Expected Outputs The expected output of the preliminary ES assessment of the PPP project is a written section of the FS report, which includes the following:  Review of GoI legislations and WBS applicable to the PPP Project and identification of required permits or licenses and valued environmental components that are relevant;  Review of project location in context of National and Regional Spatial Plans and Protected Areas, and include any recommendations for obtaining land clearance;  Environmental Permitting Plan which describes the cost for developing the AMDAL or UKL- UPL and obtaining the environmental permit for the PPP Project.  Preliminary ES assessment and mitigation measures which may include recommendations for additional studies. Mitigation measures should include an estimation of the costs. The preliminary ES assessment does not substitute an AMDAL or UKL-UPL for the project.  Summary of stakeholder mapping including description of their level of interest and authority on the PPP Project; and  Preliminary assessment on land acquisition, which includes identification of land ownership, land acquisition process and documents, and any requirements for resettlement including proposed action plans and estimated costs. 7. Experts The main experts, which will be required for performing the preliminary ES assessment for the FS, include the following:  Environmental experts which include air quality, water quality, biodiversity (flora and fauna) experts;  Health and safety expert;  Socio-economic expert;  Socio-cultural expert; and  Land acquisition expert. 8. Timeline The timeline for performing the preliminary ES assessment depends on the nature and scale of the PPP Project. It is estimated that the development of the preliminary ES assessment for the FS is completed within 3 (three) to 6 (six) months. ESMF for IIFD A2-16 WATER SECTOR 1. Background Under the Ministry of Finance (MoF), The PPP Unit makes available the IIFDTF funding support for 5 proposed PPP projects as pilots to support the development of the project Feasibility Study (FS) and enable the project to be brought to market for financing. As such, this Terms of Reference (TOR) is prepared for integrating the preliminary Environmental and Social (ES) assessment of the project into the FS. The TOR FS is sector specific and provides guidance on the ES aspects that needs to be considered to assure ES needs are understood and defined at the FS development stage. 2. Objective Apart from the design, technical, economic and financial analysis, and as part of the overall objective of an FS, the FS TOR should include a preliminary assessment on the project’s potential ES and land acquisition impacts, recommendations and estimated costs for possible mitigation measures. 3. Applicable Government Legislations and World Bank Safeguards The ES preliminary assessment should include a review or screening of the requirements and application of relevant ES Government of Indonesia (GoI) legislations and World Bank Safeguards (WBS) that are applicable to the PPP Project. The following lists the key GoI legislations and WBS related to ES aspects for the transportation sector: Regulations on Public-Private Partnership (PPP or KPBU – Kerjasama Pemerintah dan Badan Usaha):  President Regulation No. 38 Year 2015 regarding Government Cooperation With Private Sector for the Provision of Infrastructure; and  Ministry of National Development Planning/Head of Bappenas Regulation No.4Year2015on Procedures forth Implementation of Public Private Partnership for the Provision of Infrastructure. Environmental and Social Legislations related to the Water Sector:  Law No. 32 Year 2009 regarding Environmental Protection and Environmental Management;  Law No. 11 Year 1974 regarding Irrigation;  Government Regulation No. 27 Year 2012 regarding Environmental Permit;  Government Regulation No. 16 Year 2005 regarding Development of Drinking Water Supply System;  Government Regulation No. 82 Year 2001 regarding Management of Water Quality and Water Pollution Control;  Ministry of the Environment Regulation No. 05 Year 2012 regarding Types of Business and/or Activities that are Mandatory to have Environmental Impact Assessment (AMDAL); and  Ministry of Environment Regulation No. 5 Year 2014 regarding Wastewater Quality Standard. Key Legislations on Land Acquisition: ESMF for IIFD A2-17  Law No. 5 Year 1960 regarding the Agrarian Basic Principles;  Law No. 2 Year 2012 regarding Land Acquisition for the Development of Facilities for Public Use  President Regulation No. 36 Year 2005 regarding Land Acquisition for the Development of Facilities for Public Use;  President Regulation No. 65 Year 2006 regarding Change to President Regulation No. 36 Tahun 2005 regarding Land Acquisition for the Development of Facilities ;  President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  President Regulation No. 40 Year 2014 regarding Change to President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  President Regulation No 99 Year 2014 regarding Second Change to President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  President Regulation No. 30 Tahun 2015 regarding Third Change to President Regulation No. 71 Year 2012 regarding Implementation of Land Acquisition for the Development of Facilities for Public Use;  Head of National Land Agency (BPN) Regulation No. 3 Year 2007 regarding Implementation of the provisions of Presidential RegulationNo.36 of 2005as amended by Presidential RegulationNo.65 of 2006. World Bank Safeguards (WBS):  OP/BP 4.01 - Environmental Assessment;  OP/BP 4.04 - Natural Habitats;  OP/BP 4.10 - Indigenous Peoples  OP/BP 4.11 - Physical Cultural Resources;  OP/BP 4.12 - Involuntary Resettlement;  OP 4.37 - Safety of Dams;  IFC General Environmental Health and Safety (EHS) Guidelines; and  IFC EHS Guidelines for Water and Sanitation; 4. Scope of Work The minimum scope of work for the preliminary assessment of key ES aspects includes the following:  Review of ES and land acquisition regulatory and permitting requirements that are applicable to the PPP Project;  Overlaying maps for assessing the project location and putting forward recommendations in relation to National and/or Regional Development, in the context of: o Alignment with the National Policy and Strategic plan as indicated by the Map on Deferment of New Project Licenses (Peta Indikatif Penundaan Izin Baru - PIPIB) or Moratorium Map; o Alignment with the National and/or Regional Spatial Plan(s) specifying protected areas and land designated for other use (Area Penggunaan Lain – APL); and ESMF for IIFD A2-18 o Assessment on whether the project is located on or goes through government protected areas. Note: Updated map for PIPIB can be sourced at http://appgis.dephut.go.id/appgis/petamoratorium.html while map on spatial plans can be sourced from the Ministry of Public Works website, http://sigperda.penataanruang.net/ or http://rtrwn.penataanruang.net/Atribut.aspx;  Based on the Ministry of Environment Regulation No. 05/2012, screening of PPP Project to determine the type of environmental document that is required (AMDAL or UKL-UPL) as prerequisite for obtaining the environmental permit or license for the project. Project screening refers to Appendix 1 of the regulation. For the transportation sector, AMDAL is mandatory for the developments of raw water withdrawal from water bodies (river, lake, dam, spring) with a flow rate of ≥ 250 liters/second and water withdrawal from groundwater resources with a flow rate of ≥ 50 liters/second from 1 or several deep wells inside an area of < 10 Ha. Water projects having a scale smaller than the mentioned, will need to develop an UKL-UPL study.  Initial environmental permitting plan on schedule, estimated cost and party responsible for developing the required environmental document and obtaining the environmental permit;  Preliminary assessment and recommended mitigation measures on potential environmental and social impacts of the PPP Project based on recent and available data of the baseline conditions. The mitigation measures may include development of specific management plans or other studies. The preliminary assessment also includes the estimated cost(s) for the mitigation measures. The potential ES impacts may include impacts or changes to the following: o Water quality; o Hydrogeology; o Biodiversity (flora and fauna) and natural habitats; o Occupational and Community Health and Safety; o Socio-economic conditions; o Land ownership and land use; o Indigenous peoples; and o Cultural heritage sites.  Specific initial studies for water projects include, but not limited to the following: o Assessment on water balance and continuity of water supply, which analyze water withdrawal, rates by the project versus other water usage, such as for basic ecological function, irrigation, fish farming, bathing and washing by the local community. o Assessment on the potential social conflicts arising as result of competition over use of water, as well as possible mitigation efforts. o Assessment on the management and protection of water catchment/water shed areas to ensure the continuity of water for the project. o Assessment on the potential contamination of raw water, which may be caused by other activities around the project site, such as factories, wastewater facilities discharging wastewater to the water body. o Assessment on the risks of damage to the water reservoir used as source of raw water for the project. Damage to the reservoir may cause impacts to the safety of the community (flooding), as well as possible mitigation efforts. o Assessment on the quality of raw water and the selection of technology for the preliminary design of raw water treatment facilities. o Assessment on the treatment of sludge as by product of the water treatment facility. ESMF for IIFD A2-19  Initial desktop study on stakeholder mapping for the PPP project to identify all stakeholders, their level of interest and authority over the project;  Initial desktop study on land acquisition, which include: o Estimated land area required for the PPP Project based on design data; o Initial identification of land ownership and identification of any potential risks related to the land acquisition process. Land ownership include: land under the management of the Minister of Environment and Forestry, land used for religious purposes (Tanah Wakaf), land owned by village authority (tanah carik atau desa) or other government owned land such as land used for public school and/or public facilities, and land under traditional rights or land owned by indigenous peoples or land that has cultural values; o Initial identification for any potential voluntary or involuntary relocation of houses or settlements and/or squatters, and development of resettlement action plan that includes mitigation measures; o Assessment of any land acquisition document or activity which may have already been executed and identification of potential risks and mitigation measures; o Determine party responsible for executing the land acquisition and/or resettlement activities; and o Estimated costs and timeline for developing the land acquisition document as required by regulations and executing the land acquisition activities that may include resettlement. 5. General Methodology The general approach to the methodology for the preliminary ES assessment for the FS is performing a desktop study based on recent and available data that is sourced from reliable and trustworthy sources such as other scientific studies and literatures, and meetings and discussions with experts. When secondary data is not available, reasonable efforts should be made to collect primary data from the field for the assessment. The field surveys should be designed to meet the purpose of the preliminary ES assessment and do not substitute baseline surveys required for a full environmental impact assessment (i.e. AMDAL or UKL-UPL). 6. Expected Outputs The expected output of the preliminary ES assessment of the PPP project is a written section of the FS report, which includes the following:  Review of GoI legislations and WBS applicable to the PPP Project and identification of required permits or licenses and valued environmental components that are relevant;  Review of project location in context of National and Regional Spatial Plans and Protected Areas, and include any recommendations for obtaining land clearance;  Environmental Permitting Plan which describes the cost for developing the AMDAL or UKL- UPL and obtaining the environmental permit for the PPP Project.  Preliminary ES assessment and mitigation measures which may include recommendations for additional studies. Mitigation measures should include an estimation of the costs. The preliminary ES assessment does not substitute an AMDAL or UKL-UPL for the project.  Summary of stakeholder mapping including description of their level of interest and authority on the PPP Project; and  Preliminary assessment on land acquisition, which includes identification of land ownership, land acquisition process and documents, and any requirements for resettlement including proposed action plans and estimated costs. ESMF for IIFD A2-20 7. Experts The main experts, which will be required for performing the preliminary ES assessment for the FS, include the following:  Environmental experts which include air quality, water quality, biodiversity (flora and fauna) experts;  Health and safety expert;  Socio-economic expert;  Socio-cultural expert; and  Land acquisition expert. 8. Timeline The timeline for performing the preliminary ES assessment depends on the nature and scale of the PPP Project. It is estimated that the development of the preliminary ES assessment for the FS is completed within 3 (three) to 6 (six) months. ESMF for IIFD A2-21 Appendix A3 Land Acquisition and Resettlement Policy Framework APPENDIX A3.1 PROCEDURES AND CONSIDERATIONS FOR LAND ACQUISITION The following procedure is recommended to be used by all GCA in implementation of the Land Acquisition Law. 1. The GCA that requires land for a proposed PPP project submits the project proposal to the District Heads/Mayors of the districts/cities where the proposed PPP project is located or to the Governor of Jakarta (GoJ) in cases of project within the Special Capital Region of Jakarta. If the District Head/Mayor (or GoJ) considers that the project is appropriate, they issue a “determination of location”, defining the project area. 2. The District Heads/Mayors (or the GoJ) establish a Land Acquisition Committee (LAC) or Panitia Pengadaan Tanah (P2T) to facilitate land acquisition. The LAC is chaired by the District Head other regional head and includes members from relevant government agencies (e.g., Land Agency, Technical Agency requiring the land, Administrative Agency, sub-district head, and chief of village. 3. After the project area has been defined, the LAC explains the proposed PPP project to the affected communities and/or holders of land rights by way of public consultation, face-to-face consultations, and dissemination of information through the media. 4. Consultation meetings are organized with all categories of PAPs (not just land owners). PAPs are provided with information on the potential impacts of the proposed PPP project and their rights and obligations under the LARPF. 5. The concerns expressed by the PAPs during the consultation meetings and the actions proposed to address such concerns are recorded in the LARAP. 6. The LAC carries out an inventory of affected land and other assets. The inventory of affected land and other assets is carried out after the project designs are available. 7. The LAC carries out the inventory of affected land and other assets with the assistance of a project consultant, if such assistance is requested by LAC. 8. The inventory of affected land and other assets includes affected business/economy activity the following information for each household that loses land or their assets/income: (i) total size of the plot affected, area to be taken for the proposed PPP project, and area of the residual land; (ii) structures affected, indicating the percentage of the structure to be affected by the proposed PPP project; the legal status of land to be taken; (iii) description of land use in the lot affected – residential, commercial, agricultural, and (iv) description of loss income. 9. The inventory distinguishes between total and partial land takings. In cases of partial land takings, the inventory will indicate if the residual land is economically viable. In cases of dwellings and business structures, the inventory will indicate if the residual land/building is sufficient for shelter or work place. 10. The LAC produces a list with the names of the landowners or holders of land rights affected by the Project. ESMF for IIFD A3-1 11. The LAC carries out a census of all the occupants of the affected area, including renters and occupants without rights to the land affected. The date of announcement of the census is the cut-off date to determine the persons in the proposed PPP project area who are entitled to compensation, rehabilitation assistance and rehabilitation support. Subsequent inflows of people are excluded from these benefits. The census of project-affected persons/households is carried out with the assistance of a proposed PPP project consultant, if such assistance is requested by the LAC. The census identifies the affected persons/households/assets and to define:  PAPs whose assets and/or business is affected so they i) must move permanently including their business, ii) must move temporarily;  PAPs who partially affected on their assets and business The census also identifies affected persons or households that lose more than 10% of their productive assets. A socio-economic study covers all PAPs/PAHs that lose more than 10% of their productive assets and/or are forced to move to another location. In such cases, displacement can affect the income- earning opportunities and livelihoods of displaced persons, which makes it necessary to collect basic socio-economic data on them, including data on income, sources of livelihood and living conditions, as appropriate. The survey will constitute the “baseline” of the social and economic conditions before the implementation of the proposed PPP project. Progress in the implementation of income or livelihood restoration measures will be monitored against the baseline information generated by the survey. The list of affected assets and of the owners of the assets is announced in the village offices, municipal/district offices and in websites for 7 days and/or in two publications in order to enable the parties affected to raise their objections. The results of the inventory of affected persons and assets are displayed for 30 days in the village office in order to enable affected persons to submit their objections. If affected persons raise objections within this period, the grievance procedure is activated. The value of affected land is determined by an Independent Land Appraiser who is appointed by the Head of Land Acquisition of the District or Provincial Government. The Independent Land Appraiser appraises the land based on the Selling Value of Taxable Objects (SVTO) or by observing the SVTO of the current year, and can consider other factors affecting land price, such as location. “Land Price Appraisers” are defined in Article 1, Number 11 of the Presidential Regulation No. 30 of 2015 as “independent and professional experts that possess license to practice from the Ministry of Finance and licensed by the National Land Agency”. The valuation of assets on land (including buildings, trees and crops) shall refer to the specific district or provincial regulation on price standards of assets on land (Peraturan Bupati or Peraturan Gubernur) where the affected land is located. In cases when this regulation is not available, the valuation of assets on land is conducted by the Independent Land Appraiser. Assets on land will be valued at their “replacement cost” or cost of assets at the market. The results of the appraisal are submitted to the LAC and are used as the basis for the “deliberation” on the “form and/or the amount of compensation” between government institutions requiring the land ESMF for IIFD A3-2 and the owners affected. Affected owners include those people affected by the project regardless of land ownership status. The deliberation is conducted “directly and collectively” between the government institutions and the owners. If the number of owners makes direct deliberations impossible, the deliberations can be conducted in stages. The deliberation can last up to 120 calendar days. Before beginning the deliberations on the form and/or the amount of compensation, the LAC will share the results of the appraisal carried out by the Land Appraising Institution or the licensed land appraiser with the affected landowners. In cases where a project displaces persons whose livelihoods are land-based, such persons will be offered replacement land whenever possible. After the end of the deliberation period, the government institution requiring the land presents a compensation payment or makes a compensation offer, all of which is included in official reports. If the compensation is in the form of money, the LAC orders the institution requiring the land to pay the compensation 60 days at most since the date of the decree of the Land Provision Committee stipulating the form and/or amount of compensation. The invitation to receive compensation must be received by the landowners at least 3 days prior to the date of payment. If the compensation is in a form other than money, the owners and the government institutions requiring the land agree the timing of the compensation. Persons who lose land or other assets should be compensated before their land and/or other assets are taken for the proposed PPP project. If replacement land is offered, such land will be of equal or higher value, considering factors such as size, location, productive potential, etc. In cases where a proposed PPP project displaces persons whose livelihoods are land-based, such persons will be offered replacement land whenever possible. The provision of cash compensation to this type of displaced person is not appropriate, except in cases where the land taken for the project constitutes a small fraction (less than 10%) of the affected asset and the residual land is economically viable or active markets for land exist near the Project area and there is sufficient supply of land. In the case of wakaf properties (properties donated for religious or charitable purposes and that are put in a trust) compensation will be in the form of land and/or buildings and/or other facilities of at least the same value as that of the revoked wakaf properties. In cases where ulayat land (land over which a community has customary land rights) is affected by a Project, the compensation will be in the form of public facilities or other facilities that contribute to the welfare of the affected communities. Communities affected by the loss of land over which they have customary rights (ulayat land) will be offered compensation based on consultations with them, and could consist of public facilities, replacement land or cash, depending on their preferences. The owners that object the LAC’s decision on the form and/or amount of compensation can raise their objections to the District Heads/Mayors or the Governor or the Minister of Home Affairs accordance to their authority during a period of 14 days, followi ng the LAC’s decision. These authorities must make a decision on the objections within 30 days and confirm or modify the form and/or amount of compensation. Before deciding on the form and compensation level, the District Head/Mayor or Governor or Minister of Home Affairs according to their authority can request advice, opinion, or expectation from (i) PAPs ESMF for IIFD A3-3 or their representatives who filed complaints; (ii) LAC, and/or (iii) local government/government entity, who later will inform the CA and/or PI who need the land for a project. Decision made by the Head of District/Mayor or Governor or Minister of Home Affairs on the form and/or compensation level will be conveyed to the PAPs who filed complaints, and local government/government entity, who later will inform the CA and/or PI who need the land, and to the LAC. This decision will be used as a basis for compensation payment. If the land owners do not agree to relinquish their rights and the proposed PPP project location cannot be changed, the LAC proposes to the District Heads/Mayors or to the Governor or Minister of Home Affairs to apply Law No. 20 of 1961 (Revocation of Rights to Lands and Objects upon them). If these authorities or the Minister of Home Affairs decide to resolve the disagreement by revoking land rights on the basis of Law No. 20 of 1961, the LAC issues a decision on the form and/or amount of compensation and orders the government institutions requiring the land to consign the compensation to the District Court whose legal territory covers the location of the land for public interests. Proposed PPP Projects can begin after the compensation has been consigned in the District Court and the District Head/Mayor or Governor (in the case of DKI Jakarta) has issued a decree for the implementation of the physical development. The procedures described above do not apply to proposed PPP projects requiring one hectare or less. In such cases, land should be acquired directly from the owner through a purchase, trade, or other method agreed by the government institution requiring the land and the owner and without the help of the LAC. Compensation for losses related to land acquisition for a Project can be provided in the form resettlement or relocation. If a project forces people to move to another location, the LARAP will include a relocation plan. Affected persons may be offered serviced relocation sites, low cost housing, housing provided through a Bank Tabungan Negara (BTN) or other banks (state-owned or private) credit facility, or other schemes organized by the appropriate level of government. Displaced persons can also form cooperative housing groups to construct housing, with the support of the local government or the government institution sponsoring the project in the public interest that caused the displacement. Relocation sites should be chosen through consultations with displaced people and host communities, where applicable. Displaced persons should be:  Provided with complete information on the resettlement sites selected, including services and infrastructure, and the results of consultations carried out with host communities, if any;  Informed of the completion of the resettlement site at least one month before displacement, and they should be invited to survey the new site; and  The characteristics and location of residential housing or housing sites should be at least equivalent to those of the old site. Resettlement sites should have basic infrastructure, such as an access road (or footpath as appropriate), electricity, drainage system and water supply. If a piped water distribution network is not available, there should be wells that comply with health standards. They should also permit displaced persons to have adequate access to public transportation, health and educational services, jobs, ESMF for IIFD A3-4 employment opportunities, religious services, and sport facilities, according to the size of the new community. The LARAP includes information on the timing of the move, logistics of transportation of people and belongings, and arrangements for temporary shelters and services, if necessary. Displaced persons receive title (or land certificate) to their new sites and they do not bear the cost of such title. The title/certificate offers an equal or higher level of tenure security (whenever possible) than the title/certificate at the previous location. Land titles or certificates will be issued within 6 months from the date of displacement. Physically displaced persons will receive an appropriate relocation allowance, so they can cover the costs of moving to the new site. The payment of relocation allowances will be documented in the LARAP and should consider displaced livelihood as well. Indonesian regulations do not address the economic impacts of displacement, i.e., the loss of income sources or livelihoods. However, PPP projects will apply the procedures as described below:  A socioeconomic survey will be conducted if some of the displaced persons or households lose more than 10% of their productive assets or are forced to move to a different location. All affected persons/households should be identified through a census; but the socioeconomic survey should target the persons/households who lose more than 10% of their productive assets or who must move to another location. In such cases, displacement can affect the income-earning opportunities and livelihoods of displaced persons, which makes it necessary to collect basic socio-economic data on them. The survey will constitute the “baseline” of the social and economic conditions before the Project is implemented. Progress in the implementation of income or livelihood restoration measures will be monitored against the baseline information generated by the survey.  Displaced persons whose livelihood is land-based are entitled to rehabilitation support if the following conditions are present: (1) cash compensation for land is not appropriate; (2) it is not possible to offer replacement land; and (3) 10% or more of the productive assets of the displaced persons are affected.  Affected persons whose livelihood is not land based, but who lose their jobs or means of livelihood as a result of displacement, are entitled to rehabilitation support so they can find alternative employment or other means of livelihood.  Rehabilitation support should enable displaced persons to improve or at least restore their income levels and/or livelihoods. Rehabilitation assistance is provided in parallel with Project construction and implementation and can consist of job offers, skill and vocational training, transitional allowances, assistance to start a business, credit, etc., in addition to cash compensation for land and other assets lost.  The duration of the rehabilitation program should be specified in the LARAP.  The survey should permit the assessment of the impact of land acquisition and/or relocation on the PAP’s patterns of economic and social activity, including impacts on social networks and social support systems. The survey should produce all the information that is necessary to monitor the progress towards the full rehabilitation of displaced households. ESMF for IIFD A3-5 Land Acquisition GCA and Private Institutions GCA and/or PI are required to prepare a LARAP when planning to acquire land through direct negotiations between themselves and landowners. Similar to land acquisition that is acquired through local governments or other government entities, the CA and/or PI have to provide compensation for land and assets attached to the acquired land, assist the PAPs in relocation, and/or restore the income levels and/or livelihoods of the PAPs. In the case that there is a host community in the relocation site, the CA and/or PI have to include them in the LARAP in the case that the relocation of the PAPs affects their social, cultural and economic living. The compensation level should be decided based on consultations that involve informed and fair negotiation between land owners and the CA and/or PI during which values of land and other assets attached to the acquired land are defined by the certified appraisal professionals/team. The certified appraiser professional is under the “Masyarakat Asosiasi Penilai Indonesia” or the Indonesian Association of Appraisers Community” or “MAPI”. Resettlement assistance and income restoration programs and duration for their implementation will have to be developed and agreed by the PAPs through consultations. Socialization, consultations, negotiations and agreements will have to be well documented and included in the LARAP implementation progress report. This documentation should clearly demonstrate that the PAPs could say “no” to the sale and were under no pressure of expropriation if they decided not to sell. The GCA and/or PI will establish a Grievance Redress Mechanisms (GRM) for complaints related to the project. The CA and/or PI have to assign a staff to be responsible in managing the GRM system. The system will receive, and properly follow up complaints from the public and PAPs in a timely manner, as well as records complaints and their follow-ups. Details on the procedures, requirements, documentation, and reporting formats of the GRM at the Project level shall be included as part of the overall procedures for the GCA prior to submission to the PPP Unit. In the case that the GCA prepares the LARAP, the PPP Unit will ensure that the GCA prepares the LARAP in a manner consistent with the ESMF. Similarly, the GCA and/or PI are responsible for ensuring that the local government or government entity prepares and implements the LARAP, with the assistance of project consultants if necessary. The GCA and/or PI are required to work with the respective unit(s) in the local government (e.g. the LAC, the local planning agency) that have the following responsibilities: coordinate all aspects of the LARAP, including consultation activities, acquisition of land and other assets, relocation assistance and rehabilitation support; facilitate communications with project stakeholders; organize meetings to coordinate activities related to the LARAP and evaluate its implementation; and provide regular progress reports to the GCAs on the implementation of the LARAP. The GCA will report on the status and progress of the implementation of the LARAP to the private sector investor (as relevant). An independent consultant team may be hired by the PPP Unit to carry out periodic monitoring and evaluation of the implementation of the LARAP or TS prepared by the local government and the GCA and/or PI. The PPP Unit may carry out an inspection of the site or location of candidate projects with prior notification, although the inspection can be conducted independently. The PPP Unit will discuss the ESMF for IIFD A3-6 results of the inspection with the relevant local government agency, the GCA and/or the PI of that particular project. The cost of land acquisition will be borne by the GCA and/or PI regardless of whether land acquisition is carried out by the local government or government entity or the CA and/or PI through direct negotiations with land owners. Costs of land acquisition includes at least, but not limited to: cost of survey, measurement and mapping the land; cost for consultations and negotiations; payment of compensation to the owners, resettlement assistance, relocation costs, rehabilitation costs to restore income and livelihoods; fee for the LAC (in the case land is acquired through local government or government entity); land acquisition team (in case land is acquired through direct negotiation between the land owners and the CA and/or PI), fee for the LAI or LAT costs for land splitting; costs for consignation of the compensation (if this is the case); certificate fee; and, coordination and monitoring costs. Monitoring reports are required to be generated on a quarterly basis and made available on request to the PPP Unit. Baseline information on affected assets and persons included in the LARAP and TS will be used to assess progress in the implementation of the LARAP and corrective actions in the TS and to evaluate the effectiveness of the compensation, assistance and support offered to affected persons. It is likely that international investors supporting a PPP project will want to evaluate the project on a timely basis. This evaluation may include among others: (i) assessment on the adequacy of the compensation provided and to determine whether the measures implemented as part of the LARAP have enabled the PAPs to at least restore their standards of living and livelihoods, or whether they still face problems that merit further assistance; (ii) assessment on how well the GRM has been working including an examination of documentation on how quickly complaints are answered/followed up and the number of closed and open complaints. As required, the GCA and the proposed PPP project should make information on the LARAP, and its progress in implementation available for review by interested stakeholders. Primarily this will be international investors, and their stakeholder groups. Reports on grievances from PAP’s and the level and types of response should be made available to the investors as and when requested. It is recommended that on a periodic basis the GCA and the proposed PPP project engage independent social consultants to review the implementation of the LARAP, as appropriate, and where necessary share the results with interested stakeholders. In the case that a project affects more than 40 land owners (or more than 200 persons) the project will have to prepare a full LARAP. A full LARAP would have the following outline: 1. Description of the project. General description of the project and identification of the project area. 2. Potential impacts. Identification of (a) the project component or activities that will require land acquisition or give rise to resettlement; (b) the zone of impact of such component or activities; (c) the alternatives considered to avoid or minimize resettlement; and (d) the mechanisms established to minimize resettlement, to the extent possible. 3. Objectives. The main objectives of the LARAP. 4. Census of Project Affected Persons (PAPs) and inventory of affected assets. The results of the census and the inventory of assets, including the following information: ESMF for IIFD A3-7  List of PAPs, distinguishing between PAPs with land rights and occupants without such rights who are nonetheless entitled to compensation and assistance as set out in the LARPF;  Inventory of affected assets.  Total number of PAPs and PAH; and  Number of PAHs who will lose more than 10% of their productive assets. Project Affected Households Socioeconomic study. The findings of socioeconomic study to be conducted through a census in the early stages of project preparation and with the involvement of potentially PAPs, including: The results of a census survey covering:  Current occupants of the affected area to establish a basis for the design of the resettlement program and to exclude subsequent inflows of people from eligibility for compensation and resettlement assistance;  Standard characteristics of PAHs, including a description of production systems, labor, and household organization; and baseline information on livelihoods (including, as relevant, production levels and income derived from both formal and informal economic activities) and standards of living (including health status) of the displaced population;  The magnitude of the expected loss –total or partial- of assets, and the extent of displacement, physical or economic;  Information of vulnerable groups or persons (especially those below the property line, the landless, the elderly, women and children, indigenous peoples) for whom special provisions may have to be made;  Provisions to update information on the PAPs’ livelihoods and standards of living at regular intervals so that the latest information is available at the time of their displacement. Other studies describing the following:  Land tenure and transfer system, including an inventory of common property natural resources from which people derive their livelihoods and sustenance, non title-based usufruct systems (including fishing, grazing, or use of forest areas) governed by local recognized land allocation mechanism, and any issues raised by different tenure systems in the project area;  The pattern of social interaction in the affected communities, including social networks and social support systems, and how they will be affected by the project;  Public infrastructure and social services that will be affected; and  Social and cultural characteristics of affected communities, including a description of formal and informal institutions (e.g. community organizations, ritual groups, NGOs) that may be relevant to the consultation strategy and to designing and implementing the resettlement activities. ESMF for IIFD A3-8 Legal analysis. The results of an investigation of any legal steps necessary to ensure the effective implementation of land acquisition and resettlement activities under the project, including, as appropriate, a process for recognizing claims to legal rights to land--including claims that derive from customary law and traditional usage. Institutional Framework. The findings of an analysis of the institutional framework covering:  The identification of agencies responsible for resettlement activities and NGOs that may have a role in project implementation;  An assessment of the institutional capacity of such agencies and NGOs; and  Any step that are proposed to enhance the institutional capacity of agencies and NGOs responsible for resettlement implementation. Eligibility. Identification of the PAPs who will be eligible for compensation, resettlement assistance and rehabilitation support and explanation of the criteria used to determine eligibility, including relevant cut- off dates. Methods of valuing the affected assets. As required by Law No. 2/2012 and its implementation regulations, values of affected assets will be assessed by licensed appraisers which will be assigned by the provincial BPN in accordance with the national procurement regulations. The values defined by the licensed appraisers will be used as a basis for negotiation with the PAPs. Types and compensation level will be defined based on the negotiation results between the city/regency and the land or property owners. Value assessment will be carried out on per affected land plot basis which include land, space above and beneath land, buildings or structures, plants, things that relate to the affected land and/or other loss that can be valued (e.g. non-physical loss that can be equivalent with monetary value; loss of jobs or income earning sources, cost for moving, cost for change of profession, and value for remaining property). The remaining property that is no longer physically or economically feasible, can be also compensated if the owners prefer to do so. Land valuation/appraisal by the licensed appraisers will be carried out based on the MAPPI11 Standards as specified in MAPPI Guidelines. Compensation is comprised of market price plus transaction costs and other costs plus premium, in more detail as follows:  Real property (physical assets): land, buildings and facilities, plants, and other things related to the land acquired to restore to the owner a property of at least the same quality as that owned prior to the land acquisition;  Cost and loss (non-physical losses): transaction costs, moving costs, loss of on-going business (business interruption), other losses of special nature, subjective and difficult to calculate;  Premium. Alternative relocation sites considered and explanation of those selected, covering:  Institutional and technical arrangements for identifying and preparing relocation sites, whether rural or urban, for which a combination of productive potential, locational advantages, and other 11 Indonesian Society of Appraisers or ISA ESMF for IIFD A3-9 factors is at least comparable to the advantages of the old sites, with an estimate of the time needed to acquire and transfer land and ancillary resources;  Any measures necessary to prevent land speculation or influx of ineligible persons at the selected sites;  Procedures for physical relocation under the project, including timetables for site preparation and transfer; and  Legal arrangements for regularizing tenure and transferring titles to re-settlers. Plans to provide (or to finance re-settlers' provision of) housing, infrastructure (e.g., water supply, feeder roads), and social services (e.g., schools, health services); 2 plans to ensure comparable services to host populations; any necessary site development, engineering, and architectural designs for these facilities. A description of the boundaries of the relocation area; and an assessment of the environmental impacts of the proposed resettlement and measures to mitigate and manage these impacts (coordinated as appropriate with the environmental assessment of the main investment requiring the resettlement). Involvement of re-settlers and host communities:  A description of the strategy for consultation with and participation of re-settlers and hosts in the design and implementation of resettlement activities;  A summary of the views expressed and how these views were taken into account in preparing the resettlement plan;  A review of the resettlement alternatives presented and the choices made by displaced persons regarding options available to them, including choices related to forms of compensation and resettlement assistance, to relocating as individuals families or as parts of pre-existing communities or kinship groups, to sustaining existing patterns of group organization, and to retaining access to cultural property (e.g. places of worship, pilgrimage Units, cemeteries);  Institutionalized arrangements by which displaced people can communicate their concerns to project authorities throughout planning and implementation, and measures to ensure that vulnerable groups are adequately represented; and  Measures to mitigate the impact of resettlement on any host communities, including consultations with host communities and local governments, arrangements for prompt tendering of any payment due the hosts for land or other assets provided to re-settlers, arrangements for addressing any conflict that may arise between re-settlers and host communities; and any measures necessary to augment services (e.g., education, water, health, and production services) in host communities to make them at least comparable to services available to re-settlers. Affordable and accessible grievance procedures for third-party settlement of disputes arising from activities included in the LARAP; such grievance procedures should take into account the availability of judicial recourse and community and traditional dispute settlement mechanisms. The organizational framework for land acquisition and resettlement, including identification of agencies responsible for the implementation of the LARAP, the delivery of resettlement measures and provision ESMF for IIFD A3-10 of services; arrangements to ensure appropriate coordination between agencies and jurisdictions involved in implementation; and any measures (including technical assistance) needed to strengthen the implementing agencies' capacity to design and carry out resettlement activities; provisions for the transfer to local authorities or re-settlers themselves of responsibility for managing facilities and services provided under the project and for transferring other such responsibilities from the resettlement implementing agencies, when appropriate. An implementation schedule covering all resettlement activities, from preparation through implementation, including target dates for the achievement of expected benefits to re-settlers and hosts and terminating the various forms of assistance. The schedule should indicate how the resettlement activities are linked to the implementation of the overall project. Tables showing itemized cost estimates for all resettlement activities, including allowances for inflation, population growth, and other contingencies; timetables for expenditures; sources of funds; and arrangements for timely flow of funds, and funding for resettlement, if any, in areas outside the jurisdiction of the implementing agencies. Arrangements for monitoring of land acquisition and resettlement activities by the implementing agency, supplemented by independent monitors as considered appropriate by the Bank, to ensure complete and objective information; performance monitoring indicators to measure inputs, outputs, and outcomes for resettlement activities; involvement of the displaced persons in the monitoring process; submission of monitoring reports to the Bank; evaluation of the impact of resettlement for a reasonable period after all resettlement and related development activities have been completed; using the results of resettlement monitoring to guide subsequent implementation. In the case that less than 40 households or 200 persons are affected by a project, an abbreviated LARAP will have to be prepared with the following outline:  Description of the project. General description of the project and identification of the project area.  Potential impacts. Identification of (i) the project component or activities that will require land acquisition; and (ii) the zone of impact of such component or activities.  Census of Project Affected Persons (PAPs) and inventory of affected assets. The results of the census and the inventory of assets, including (i) a list of PAPs, distinguishing between PAPs with land rights and land users without such rights who are nonetheless entitled to compensation and assistance as set out in the LARPF; and (ii) an inventory of plots and structures affected. The information generated by the census should be summarized in a table  Legal analysis. Descriptions of legal steps to ensure the effective implementation of land acquisition under the project, including, as appropriate, a process for recognizing claims to legal rights to land--including claims that derive from customary law and traditional usage.  Eligibility. Identification of the PAPs who will be eligible for compensation and explanation of the criteria used to determine eligibility.  Valuation of assets and calculation of compensation for losses. A description of the procedures that will be followed to determine the form and amount of compensation to be offered to PAPs. ESMF for IIFD A3-11  Consultations with persons who lose land and other assets. A description of the activities carried out to (1) inform PAPs about the impacts of the project and the compensation procedures and options and (2) give the PAPs opportunities to express their concerns.  Organizational responsibilities. A brief description of the organizational framework for implementing land acquisition.  Implementation schedule. An implementation schedule covering land acquisition, including target dates for the delivery of compensation. The schedule should indicate how the land acquisition activities are linked to the implementation of the overall project.  Costs and budget. Cost estimates for land acquisition for the project.  Grievance procedures. Affordable and accessible procedures for third-party settlement of disputes arising from land acquisition; such grievance mechanisms should take into account the availability of judicial recourse and community and traditional dispute settlement mechanisms.  Monitoring. Arrangements for monitoring land acquisition activities and the delivery of compensation to PAPs. The following is the suggested outline for a LARAP in the case that land is acquired through negotiations between the CA and/or PI and landowners:  Project description;  Project impact area;  Project affected persons;  Land requirements and characteristics of impacts (permanent or temporary impacts, land and other assets attached to the acquired land, the need for relocation, and affected income sources and livelihood, social and cultural impacts, etc.);  Eligibility and entitlements;  Land and assets valuation by the certified appraisal professionals/team;  Land acquisition and compensation processes with timeline;  Public consultation, negotiation;  Dispute resolution;  Disclosures;  Payment mechanisms;  Legal documents for the land and assets;  Institutional arrangements and financing;  Monitoring and implementation reporting; and  Annexes of supporting documentation. ESMF for IIFD A3-12 Principles the approach to land acquisition is about mitigating risk to the proposed PPP project through applying regulation, due process and screening in a manner that mitigates the future challenges associated with delays in negotiations and in potential ownership conflicts. As in Section 4, a screening must be conducted to identify whether or not the impacted communities or locations involve aspects of the WBS’s. It is the responsibility of the PPP project proponent to screen actions against the WBS needs and demonstrate this to the PPP Unit. Summary of key considerations is presented below: Public Purpose Legislation (UU 2/2012 and its WBS OP 4.12 implementation guidelines  The Legislation does not require the land  Resettlement activities should be conceived and acquisition to be carried out as a development executed as sustainable development programs, program. Compensation is provided for land providing sufficient resources to enable the acquisition. persons displaced by the project to share in project benefits.  Public consultation must be conducted with  Alternative project designed should be project affected persons with the aim of considered, to avoid or minimize involuntary achieving agreement regarding acquisition of resettlement. the proposed location for the project. The Legislation provides an opportunity for a  Use acceptable planning and action plan project-affected person to file their complaints (resettlement instruments) to ensure the interest related to the issuing of location determination of affected persons is protected. by governor.  Social assessment should cover overall social  The overall social assessment should be cost, including PAP cost and explored options to minimized adverse impact. covered in the feasibility study, explored options to minimized adverse impact is not necessarily covered.  This provides for options of compensation to be  Detailed provisions on compensation, including provided in the form of cash, substitute land, compensation at full replacement cost for loss of resettlement, shareholding and other forms of assets attributable to the project; assistance compensation agreed by parties12. But final during relocation, and residential housing, or compensation is result of negotiation between housing sites, or agricultural sites of equivalent the Land Acquisition Team (LAT) and the productive potential, as required; transitional entitled parties. support and development assistance, such as land preparation, credit facilities, training or job  Mainly cash compensation but final opportunities as required, in addition to compensation is result of negotiation between compensation measures; cash compensation for the Land Acquisition Team (LAT) and the land when the impact of land acquisition on entitled parties. livelihoods is minor; and provision of civic  Fair & reasonable as a basis for appraisal infrastructure and community services. based on MAPPI standard.  Preference given for land-based resettlement 1. Real Property (Physical Assets) strategies for persons whose livelihoods are land based.  Land.  Non-land options may be provided if land is not the  Buildings & Facilities. preferred option of the displaced people, provision  Plants. of land would affect sustainability of park or protected areas or sufficient land is not available  Other things related to the land required (this must be proved and documented). to restore to the owner a property of at least the same quality as that owned prior  Livelihood has to be restored by cash, to the land acquisition. resettlement, rehabilitation assistance and or development assistance. 2. Cost & Loss (Non-Physical Losses) 12 Article 36 of the Law. ESMF for IIFD A3-13  Transaction costs.  Cash compensation must be sufficient to replace lost land and other assets at full replacement cost  Moving costs. in local markets (no depreciation, covering  Loss of on-going business (business transaction costs). interruption).  Other losses of special nature, subjective and difficult to calculate. 3. Premium  Once fair compensation given further consideration and impact mitigation are not elaborated. There is no specific requirement in the Legislation on how to implement resettlement and livelihood restoration.  Indigenous people (IP) are the legitimate owner  See [OP 4.12, para 9] of communal customary land.  OP4.10 - Any project affect to IP needs  The legitimate owner or IP will determined by engagement in a process of free, prior and local government, in accordance with informed consultation includes measures to (a) procedures set out in BPN Regulation No. avoid potentially adverse effects on IP 5/1999. communities; or (b) when avoidance in not feasible, minimize, mitigate, or compensate for such effects. IP also should receive social economic benefits that are culturally appropriate and gender and intergenerationally inclusive. ESMF for IIFD A3-14 APPENDIX A3.2 PROCESS FRAMEWORK OP 4.12 Annex A, para 26. A process framework is prepared when Bank-supported projects may cause restrictions in access to natural resources in legally designated parks and protected areas. The purpose of the process framework is to establish a process by which members of potentially affected communities participate in design of project components, determination of measures necessary to achieve resettlement policy objectives, and implementation and monitoring of relevant project activities (see OP 4.12, paras. 7 and 31). Indonesian regulation also release a Regulation of Ministry of Forestry No. T.39/Menhut-II/2013 concerning Local Community Empowerment through Forest Partnership. Specifically, the process framework describes participatory processes by which the following activities will be accomplished: (a) Project components will be prepared and implemented. The document should briefly describe the project and components or activities that may involve new or more stringent restrictions on natural resource use. It should also describe the process by which potentially displaced persons participate in project design. (b) Criteria for eligibility of affected persons will be determined. The document should establish that potentially affected communities will be involved in identifying any adverse impacts, assessing of the significance of impacts, and establishing of the criteria for eligibility for any mitigating or compensating measures necessary. (c) Measures to assist affected persons in their efforts to improve their livelihoods or restore them, in real terms, to pre-displacement levels, while maintaining the sustainability of the park or protected area will be identified. The document should describe methods and procedures by which communities will identify and choose potential mitigating or compensating measures to be provided to those adversely affected, and procedures by which adversely affected community members will decide among the options available to them. (d) Potential conflicts or grievances within or between affected communities will be resolved. The document should describe the process for resolving disputes relating to resource use restrictions that may arise between or among affected communities, and grievances that may arise from members of communities who are dissatisfied with the eligibility criteria, community planning measures, or actual implementation. Additionally, the process framework should describe arrangements relating to the following. (e) Administrative and legal procedures. The document should review agreements reached regarding the process approach with relevant administrative jurisdictions and line ministries (including clear delineation for administrative and financial responsibilities under the project). (f) Monitoring arrangements. The document should review arrangements for participatory monitoring of project activities as they relate to (beneficial and adverse) impacts on persons within the project impact area, and for monitoring the effectiveness of measures taken to improve (or at minimum restore) incomes and living standards. ESMF for IIFD A3-15 Appendix A4 Contents of a Land Acquisition and Resettlement Action Plan (LARAP) APPENDIX A4 CONTENTS OF A LAND ACQUISITION AND RESETTLEMENT ACTION PLAN (LARAP) The LARAP covers the elements below, as relevant. When any element is not relevant to project circumstances, it should be noted in the LARAP. 1. Description of the subproject. General description of the project and identification of the project area. 2. Potential impacts. Identification of (a) the subproject component or activities that will require land acquisition or give rise to resettlement; (b) the zone of impact of such component or activities; (c) the alternatives considered to avoid or minimize resettlement; and (d) the mechanisms established to minimize resettlement, to the extent possible. 3. Objectives. The main objectives of the LARAP. 4. Census of Project Affected Persons (PAPs) and inventory of affected assets. The results of the census and the inventory of assets, including the following information:  list of PAPs, distinguishing between PAPs with land rights and occupants without such rights;  inventory of plots and structures affected and including the following information:  Total size of the plot affected, size of the area to be taken for the subproject, and size of the residual land;  Status ownership of affected land/building and evidence of ownership;  Function of affected land/building;  Building condition (permanent, semi permanent, temporary, etc.)  Other assets affected (trees, crops, wells, fences, etc.)  total number of PAPs and Project Affected Households (PAHs)  number of PAHs who must relocate, distinguishing between (1) those who will be able to rebuild their homes within the residual land of lots affected by the subproject and (2) those who will be forced to move to another location; and  number of PAHs who will lose more than 20% of their productive assets. The information above should be summarized in a table (see suggested format in Annexes C1 and C2). 5. Socioeconomic study. Findings of a socioeconomic study covering PAHs that lose more than 20% of their productive assets and/or are forced to move to another location. The socioeconomic study should include the following elements:  A description of production systems, labor, and household organization;  The patterns of social interaction in the affected communities, including social networks and social support systems, and how they will be affected by the subproject;  Information on vulnerable groups or persons as provided for in OP 4.12, para. 8, for whom special provisions may have to be made; ESMF for IIFD A4-1  Land tenure and transfer systems, including an inventory of common property natural resources from which people derive their livelihoods and sustenance, non-title-based usufruct systems (including fishing, grazing, or use of forest areas) governed by local recognized land allocation mechanisms, and any issues raised by different tenure systems;  Public infrastructure and social services that will be affected;  Social and cultural characteristics of displaced communities, including a description of formal and informal institutions (e.g., community organizations, ritual groups, nongovernmental organizations (NGOs)) that may be relevant to the consultation strategy and to designing and implementing the resettlement activities;  Baseline information on livelihoods (including, as relevant, production levels and income derived from both formal and informal economic activities) and standards of living (including health status) of the displaced population; and  Provisions to update information on the displaced people's livelihoods and standards of living at regular intervals so that the latest information is available at the time of their displacement. 6. Legal analysis. The results of an investigation of any legal steps necessary to ensure the effective implementation of land acquisition and resettlement activities under the subproject, including, as appropriate, a process for recognizing claims to legal rights to land--including claims that derive from customary law and traditional usage. 7. Institutional Framework. The findings of an analysis of the institutional framework covering:  The identification of agencies responsible for resettlement activities and NGOs that may have a role in project implementation;  An assessment of the institutional capacity of such agencies and NGOs; and  Any steps that are proposed to enhance the institutional capacity of agencies and NGOs responsible for resettlement implementation. 8. Eligibility. Identification of the PAPs who will be eligible for compensation, resettlement assistance and rehabilitation support and explanation of the criteria used to determine eligibility, including relevant cut-off dates. 9. Valuation of assets and calculation of compensation for losses. A description of the procedures that will be followed to determine the form and amount of compensation to be offered to PAPs. 10. Compensation, resettlement assistance and rehabilitation support. A description of (1) the compensation packages to be offered to PAPs who lose land and/or other assets, (2) resettlement assistance to be offered to physically displaced persons, and (3) rehabilitation support to persons who lose income sources or livelihoods as a result of land acquisition for the subproject. The compensation packages, combined with other assistance and support offered to each category of PAPs should be sufficient to achieve the objectives of World Bank Operational Policy 4.12 on Involuntary Resettlement (see OP 4.12, para. 6). The relocation options and other assistance offered to the PAPs should be prepared in consultation with them and should be technically and economically feasible, as well as compatible with the cultural preferences of the PAPs. 11. Site selection, site preparation, and relocation. Alternative relocation sites considered and explanation of those selected, covering  institutional and technical arrangements for identifying and preparing relocation sites, whether rural or urban, for which a combination of productive potential, locational advantages, and other factors is at least comparable to the advantages of the old sites, with an estimate of the time needed to acquire and transfer land and ancillary resources;  any measures necessary to prevent land speculation or influx of ineligible persons at the selected sites; ESMF for IIFD A4-2  procedures for physical relocation under the subproject, including timetables for site preparation and transfer; and  legal arrangements for regularizing tenure and transferring titles to resettlers. 12. Housing, infrastructure, and social services. Plans to provide (or to finance resettlers' provision of) housing, infrastructure (e.g., water supply, feeder roads), and social services (e.g., schools, health services); plans to ensure comparable services to host populations; any necessary site development, engineering, and architectural designs for these facilities. 13. Environmental protection and management. A description of the boundaries of the relocation area; and an assessment of the environmental impacts of the proposed resettlement and measures to mitigate and manage these impacts (coordinated as appropriate with the environmental assessment of the main investment requiring the resettlement). 14. Community participation. Involvement of resettlers and host communities:  A description of the strategy for consultation with and participation of resettlers and hosts in the design and implementation of resettlement activities;  A summary of the views expressed and how these views were taken into account in preparing the resettlement plan;  A review of the resettlement alternatives presented and the choices made by displaced persons regarding options available to them, including choices related to forms of compensation and resettlement assistance, to relocating as individuals families or as parts of preexisting communities or kinship groups, to sustaining existing patterns of group organization, and to retaining access to cultural property (e.g. Places of worship, pilgrimage centers, cemeteries);  Institutionalized arrangements by which displaced people can communicate their concerns to project authorities throughout planning and implementation, and measures to ensure that vulnerable groups are adequately represented; and  Measures to mitigate the impact of resettlement on any host communities, including consultations with host communities and local governments, arrangements for prompt tendering of any payment due the hosts for land or other assets provided to resettlers, arrangements for addressing any conflict that may arise between resettlers and host communities; and any measures necessary to augment services (e.g., education, water, health, and production services) in host communities to make them at least comparable to services available to resettlers. 15. Grievance procedures. Affordable and accessible procedures for third-party settlement of disputes arising from activities included in the LARAP; such grievance procedures should take into account the availability of judicial recourse and community and traditional dispute settlement mechanisms. 16. Organizational responsibilities. The organizational framework for land acquisition and resettlement, including identification of agencies responsible for the implementation of the LARAP, the delivery of resettlement measures and provision of services; arrangements to ensure appropriate coordination between agencies and jurisdictions involved in implementation; and any measures (including technical assistance) needed to strengthen the implementing agencies' capacity to design and carry out resettlement activities; provisions for the transfer to local authorities or resettlers themselves of responsibility for managing facilities and services provided under the project and for transferring other such responsibilities from the resettlement implementing agencies, when appropriate. 17. Implementation schedule. An implementation schedule covering all resettlement activities, from preparation through implementation, including target dates for the achievement of expected benefits to resettlers and hosts and terminating the various forms of assistance. The schedule should indicate how the resettlement activities are linked to the implementation of the overall project. ESMF for IIFD A4-3 18. Costs and budget. Tables showing itemized cost estimates for all resettlement activities, including allowances for inflation, population growth, and other contingencies; timetables for expenditures; sources of funds; and arrangements for timely flow of funds, and funding for resettlement, if any, in areas outside the jurisdiction of the implementing agencies. 19. Monitoring and evaluation. Arrangements for monitoring of land acquisition and resettlement activities by the implementing agency, supplemented by independent monitors as considered appropriate by the Bank, to ensure complete and objective information; performance monitoring indicators to measure inputs, outputs, and outcomes for resettlement activities; involvement of the displaced persons in the monitoring process; submission of monitoring reports to the Bank; evaluation of the impact of resettlement for a reasonable period after all resettlement and related development activities have been completed; using the results of resettlement monitoring to guide subsequent implementation. Note: The information on the schedule of the implementation of the LARAP and the sources of funding may be summarized in a table. ESMF for IIFD A4-4 Contents of an Abbreviated RAP An Abbreviated RP should be prepared for subprojects that affects less than 200 families or in cases where the impacts on the entire displaced population are minor. Impacts are considered minor if the affected people are not physically displaced and less than 20% of their productive assets are lost. An Abbreviated RP covers the following minimum elements: 1. Description of the project. General description of the project and identification of the project area. 2. Potential impacts. Identification of (i) the subproject component or activities that will require land acquisition; and (ii) the zone of impact of such component or activities. 3. Census of Project Affected Persons (PAPs) and inventory of affected assets. The results of the census and the inventory of assets, including (i) a list of PAPs, distinguishing between PAPs with land rights and land users without such rights; and (ii) an inventory of plots and structures affected. The information generated by the census should be summarized in a table (see suggested format in Annexes C1 and C2). 4. Legal analysis. Descriptions of legal steps to ensure the effective implementation of land acquisition under the subproject, including, as appropriate, a process for recognizing claims to legal rights to land--including claims that derive from customary law and traditional usage. 5. Eligibility. Identification of the PAPs who will be eligible for compensation and explanation of the criteria used to determine eligibility. 6. Valuation of assets and calculation of compensation for losses. A description of the procedures that will be followed to determine the form and amount of compensation to be offered to PAPs. 7. Consultations with persons who lose land and other assets. A description of the activities carried out to (1) inform PAPs about the impacts of the project and the compensation procedures and options and (2) give the PAPs opportunities to express their concerns. 8. Organizational responsibilities. A brief description of the organizational framework for implementing land acquisition. 9. Implementation schedule. An implementation schedule covering land acquisition, including target dates for the delivery of compensation. The schedule should indicate how the land acquisition activities are linked to the implementation of the overall project. 10. Costs and budget. Cost estimates for land acquisition for the subproject. 11. Grievance procedures. Affordable and accessible procedures for third-party settlement of disputes arising from land acquisition; such grievance mechanisms should take into account the availability of judicial recourse and community and traditional dispute settlement mechanisms. 12. Monitoring. Arrangements for monitoring land acquisition activities and the delivery of compensation to PAPs. Note: the information on the schedule of the implementation of the RP and the sources of funding may be summarized in a table (see suggested format below). ESMF for IIFD A4-5 Implementation Schedule and Funding Sources Activity Responsible Deadline Cost Source of institution (Rp) Funding 1. Consultation with the people in project area on the project and its potential impacts 2. Identification of affected people and assets 3. Deliberation on form and amount of compensation 4. Payment of compensation 5. Monitoring and evaluation ESMF for IIFD A4-6 Appendix A5 Outline for UKL/UPL and AMDAL APPENDIX A5 OUTLINE FOR UKL/UPL AND AMDAL STUDIES A. UKL - UPL Table of Contents for UKL/UPL ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN (UKL/UPL) (Based on Permen LH No. 13 Tahun 2010) The UKL-UPL at least shall contain the following: TABLE OF CONTENTS LIST OF TABLES (at least 3 as shown): Table 1: Environmental Impacts; Table 2: Environmental Mitigation Plan; Table 3: Environmental Monitoring Plan. LIST OF FIGURES (at least 3 as shown): Figure 1: Map of study location in context of surrounding area; Figure 2: Map of Environmental Impacts; Figure 3: Land to be acquired LIST OF APPENDICES (at least 3): Appendix 1: Map of environmental condition; Appendix 2: Design drawings; Appendix 3: Photos of study area and site. AGREEMENT APPROVAL LETTER FROM BLH/BLHD I. THE PROPONENT 1. Name of company 2. Name of proponent 3. Address of proponent II. PLAN OF ACTIVITY 1. Name of activity 2. Location of activity 3. The scale of activity 4. Size of activity plan component III. ENVIRONMENTAL IMPACTS IDENTIFIED Explain briefly and clearly regarding: 1. Activities which will become the source of impacts to the environment; 2. Type of environmental impacts which will occur; 3. Units to describe the scale of impacts; and 4. Other issues to explain the environmental impacts which will occur. 5. Summary of impacts in the form of the following table: SOURCE OF TYPE OF SCALE OF IMPACT REMARKS IMPACT IMPACT ESMF for IIFD A5-1 (Write down the (Write down the (Write down the units (Write down other information to activity which will impacts that are which can describe explain the environmental cause impact to the likely to occur) the scale of impacts) impacts which will occur) environment) IV. ENVIRONMENTAL MANAGEMENT AND MONITORING PROGRAM V. SIGNATURE APPENDICES B. AMDAL Table of contents for ANDAL framework, ANDAL, RKL-RPL and Executive Summary refers to Permen LH No. 08 year 2006 as mentioned below: Table of Contents for AMDAL Environmental Impact Assessment (Based on Permen LH No. 08Tahun 2006) KA- ANDAL Document:  Guidelines for KA-ANDAL Preparation refers to Annex 1 Permen LH No. 08 year 2006 ANDAL Document:  Guidelines for ANDAL Preparation refers to Annex 2 Permen LH No. 08 year 2006 RKL Document:  Guidelines for RKL Preparation refers to Annex 3 Permen LH No. 08 year 2006 RPL Document:  Guidelines for RPL Preparation refers to Annex 4 Permen LH No. 08 year 2006 Executive Summary Document:  Guidelines for Executive Summary Preparation refers to Annex 5Permen LH No. 08 year 2006 ESMF for IIFD A5-2 Appendix A6 EIA and EMP Requirements APPENDIX A6 EIA AND EMP REQUIREMENTS Generic Requirements for category A classified project. The EA report should include the following items (not necessarily in the order shown): 1. Executive summary. Concisely discusses significant findings and recommended actions. 2. Policy, legal, and administrative framework. Discusses the policy, legal, and administrative framework within which the EA is carried out. Explains the environmental requirements of any co-financiers. Identifies relevant international environmental agreements to which the country is a party. 3. Project description. Concisely describes the proposed project and its geographic, ecological, social, and temporal context, including any offsite investments that may be required (e.g., dedicated pipelines, access roads, power plants, water supply, housing, and raw material and product storage facilities). Indicates the need for any resettlement plan or indigenous peoples development plan (see also subparagraph (h)(v) below). Normally includes a map showing the project site and the project's area of influence. 4. Baseline data. Assesses the dimensions of the study area and describes relevant physical, biological, and socioeconomic conditions, including any changes anticipated before the project commences. Also takes into account current and proposed development activities within the project area but not directly connected to the project. Data should be relevant to decisions about project location, design, operation, or mitigation measures. The section indicates the accuracy, reliability, and sources of the data. 5. Environmental impacts. Predicts and assesses the project's likely positive and negative impacts, in quantitative terms to the extent possible. Identifies mitigation measures and any residual negative impacts that cannot be mitigated. Explores opportunities for environmental enhancement. Identifies and estimates the extent and quality of available data, key data gaps, and uncertainties associated with predictions, and specifies topics that do not require further attention. 6. Analysis of alternatives. Systematically compares feasible alternatives to the proposed project site, technology, design, and operation--including the "without project" situation--in terms of their potential environmental impacts; the feasibility of mitigating these impacts; their capital and recurrent costs; their suitability under local conditions; and their institutional, training, and monitoring requirements. For each of the alternatives, quantifies the environmental impacts to the extent possible, and attaches economic values where feasible. States the basis for selecting the particular project design proposed and justifies recommended emission levels and approaches to pollution prevention and abatement. 7. Environmental management plan (EMP). Covers mitigation measures, monitoring, and institutional strengthening; see outline in OP 4.01, Annex C. 8. Appendixes 9. List of EA report preparers--individuals and organizations. ESMF for IIFD A6-1 10. References--written materials both published and unpublished, used in study preparation. 11. Record of interagency and consultation meetings, including consultations for obtaining the informed views of the affected people and local nongovernmental organizations (NGOs). The record specifies any means other than consultations (e.g., surveys) that were used to obtain the views of affected groups and local NGOs. 12. Tables presenting the relevant data referred to or summarized in the main text. 13. List of associated reports (e.g., resettlement plan or indigenous peoples development plan). ESMF for IIFD A6-2 Generic Requirements for an Environmental Management Plan Category B project  Summary of impacts;  Description of mitigation measures;  Description of monitoring program;  Institutional arrangements, including training;  Implementation schedule and reporting procedures; and  Cost estimates and sources of funds Suggested Matric Format for Information Presentation: Potential Potential Proposed Institutional Responsibilities Cost Project Activity Environmental Social Mitigation (incl. Enforcement and Impacts Impacts Measures(s) Estimates coordination) 1) Pre-Construction 2) Phase 3) … 1) Construction 2) Phase 3) … 1) Operation and 2) Maintenance 3) Phase … ESMF for IIFD A6-3 Example of Monitoring Frame Work for Environmental Monitoring Plan: Proposed Parameters Measurements Responsibilities Frequency of Cost (equipment Mitigation to be Location (incl. Methods & (incl. review Measurement &individuals) Measure Monitored equipment) and reporting) Pre- Construction Phase Construction Phase Operation and Maintenance Phase Total Cost for all Phases ESMF for IIFD A6-4 Appendix A7 Chance Finds Procedure (PCR Plan) APPENDIX A7 CHANCE FINDS PROCEDURE (PCR PLAN) 1. Definition. A chance find is archaeological, historical, cultural, and remain material encountered unexpectedly during project construction or operation. A chance find procedure is a project-specific procedure which will be followed if previously unknown cultural heritage is encountered during project activities. Such procedure generally includes a requirement to notify relevant authorities of found objects or sites by cultural heritage experts; to fence off the area of finds or sites to avoid further disturbance; to conduct an assessment of found objects or sites by cultural heritage experts; to identify and implement actions consistent with the requirements of the World Bank and Indonesian law; and to train project personnel and project workers on chance find procedures. 2. Objectives. a. To protect physical cultural resources from the adverse impacts of project activities and support its preservation. b. To promote the equitable sharing of benefits from the use of PCR. 3. Procedure. If the proposed activity discovers archeological sites, historical sites, remains and objects, including graveyards and/or individual graves during excavation or construction, shall: a. Halt the construction activities in the area of the chance find; b. Delineate and fence the discovered site or area; c. Secure the site to prevent any damage or loss of removable objects. In cases of removable antiquities or sensitive remains, a night guard shall be arranged until the responsible local authorities or the District/Provincial Department of Culture, or the local Institute of Archaeology if available to take over; d. Forbid any take of the objects by the workers or other parties; e. Notify all subproject personnel of the finding and take the preliminary precaution of protection; f. Record the chance find objects and the preliminary actions; g. Notify the responsible local authorities and the relevant Institute of Archeology immediately (within 24 hours or less); h. Responsible local authorities would be in charge of protecting and preserving the site before deciding on subsequent appropriate procedures. This would require a preliminary evaluation of the findings to be performed by the local Institute of Archaeology. The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage; those include the aesthetic, historic, scientific or research, social and economic values; i. Decisions on how to handle the finding shall be taken by the responsible authorities. This could include changes in the subproject layout (such as when finding an irremovable remain of cultural or archeological importance) conservation, preservation, restoration and salvage; j. Implementation for the authority decision concerning the management of the finding shall be communicated in writing by relevant local authorities; k. The mitigation measures could include the change of proposed project design/layout, protection, conservation, restoration, and/or preservation of the sites and/or objects; l. Construction work at the site could resume only after permission is given from the responsible local authorities concerning safeguard of the heritage; and m. The subproject proponent responsible to cooperate with the relevant local authorities to monitor all construction activities and ensure that the adequate preservation actions already taken and hence the heritage sites protected. Appendix A8 Matrix of Consideration for Environmental and Social Impact APPENDIX A8 MATRIX OF CONSIDERATION FOR ENVIRONMENTAL AND SOCIAL IMPACT Metro Railways Construction phase o Cutting of trees; o Storage and disposal of construction debris and spoil; o Runoff from excavated material or stored construction material to neighboring water bodies; o Fugitive emissions from construction material transportation; o Use of diesel generator sets and storage of diesel; o Use of heavy plant and machinery like cranes; o Landfilling and reclamation in coastal areas for train maintenance depots, casting yards; o Traffic diversion and congestion during construction increasing air pollutant emissions; o Mechanical piling and rafting noise; o Use of impact and pneumatic machinery noise and occupational safety; o Dewatering of excavated areas; o Batching plant – air emissions; and o Labour Camp – sanitation, waste disposal. Operation Phase o Generation of Solid Waste; o Illumination at stations and along the line causing public intrusion; o Traffic congestion near stations – air quality, noise; o Washing of rakes-generation of effluents; o Chemical storage (transformer/ diesel/ mobile oil, grease, turpentine etc; o Generation of hazardous waste (waste oil); o Visual impacts – overhead rail; and o Use of overhead equipment for electrification – safety. ESMF for IIFD A7-1 Bus Rapid Transit Construction Phase System Projects o Felling of trees within Right of Way (ROW) o Traffic congestion due to road constriction / diversions o Exhaust from construction machinery, equipment including generators, earth moving equipment and transport vehicles o Disposal of excavation spoil material and transportation of materials o Labour camps demand for fuel wood, solid waste management, sanitation o Construction activities like i) site clearance, ii) excavation, iii) foundation preparation, iv) material movement on site, haul roads o Fugitive dust emissions from construction camps, stockpile areas, storage of materials o Demand of water for construction activities and labour camps o Construction activities and honking by vehicles in a traffic congestion especially in and around demarcated silent zones o Air pollution, increase in noise levels and obstruction to access of some areas o Use of diesel powered construction equipment o Reduction in ROW during construction o Disposal of spoil material o Traffic congestion, diesel powered equipment, material transportation o Runoff from construction activities, dumping of debris and excavation spoil Operation: o Location of bus stops o Design and configuration of buses o Traffic congestions due to reduced roadway capacity by operation of Transit (BRT) Ports and Harbors Construction: o Biodiversity impacts; Biodiversity construction and dredging, considering shoreline and aquatic vegetation, fisheries, coastal habitats, o Dredging, construction, spoil, waste heavy metal contaminations, o Impacts from sedimentation plumes on local marine habitats o Dredged materials management; o Air Emissions; o General Waste o Waste Water; o Solid Waste Management; o Hazardous Materials Management; and o Noise. Operations o Waste management; o Air emissions from boilers, engines and machines. o VOCs from fuel storage bunkers, and handling of dry bulk cargo sources of combustion; o Dust; o Separation of combustible materials; o Spillages and emissions to water and air; o Waste water effluents and sewage, ESMF for IIFD A7-2 o Ship waste management for port wastes and for ship wastes; o Hazardous materials and Oil management, o Noise from cargo handling and ships, light pollution; o Ballast cleaning pollution and introduction of invasive species. Occupational: o Physical Hazards; o Chemical Hazards; o Confined species; o Exposure to inorganic dust; and o Exposure to noise. Road infrastructure (toll roads and toll bridges): Toll Roads Construction: o Felling of trees within Right of Way (ROW). o Traffic congestion due to road constriction / diversions; o Exhaust from construction machinery, equipment including generators, earth moving equipment and transport vehicles; o Disposal of excavation spoil material and transportation of materials; o Labour camps demand for fuel wood, solid waste management, sanitation; o Construction activities like i) site clearance, ii) excavation, iii) foundation preparation, iv) material movement on site, haul roads; o Fugitive dust emissions from construction camps, stockpile areas, storage of materials; o Demand of water for construction activities and labour camps; o Construction activities and honking by vehicles in a traffic congestion especially in and around demarcated silent zones; o Air pollution, increase in noise levels and obstruction to access of some areas; o Use of diesel powered construction equipment; o Reduction in ROW during construction; o Disposal of spoil material; o Traffic congestion, diesel powered equipment, material Transportation; o Extraction of soil from borrow pits Extraction of rocks and sand from river beds; o Runoff from construction activities, dumping of debris and excavation spoil; o Chance find of artifacts with archaeological or historical value. Operations Phase o Increase in impermeable surface area thus increasing the rate of surface water runoff; o Solid waste/residues generated during construction and maintenance of roads; o Air emissions due to dust during construction and exhaust from vehicles o Wastewater discharges from maintenance facilities; o Traffic noise that is generated by vehicle engines, emission of exhaust, aerodynamic sources, and tire / pavement interaction; o Physical, chemical and biological hazards related to occupational health and safety; ESMF for IIFD A7-3 o Light illumination. Irrigation infrastructure (ducts for raw water). Water Supply Water Treatment o Solid waste residuals; o Wastewater; o Storage of hazardous chemicals; o Air emissions from water treatment operations. Water Distribution o Water system leaks o Water pipe flushing. Wastewater infrastructure (collection, conveyance, treatment): Sewerage Domestic Wastewater Discharges o Spills and leakages of untreated wastes; and o Disease risks from uncontrolled spillages or leaks. Industrial Wastewater Discharges o Leaks and spillages. Wastewater and Sludge Treatment and Discharge o Quantity of Liquid effluents; o Solid effluents; o Hazardous Air emissions ; o Hazardous chemicals,; and o Accidents and injuries, chemical exposure, hazardous atmosphere. Solid waste management infrastructure (transportation and disposal facilities): Waste Management Municipal Solid Waste o Air emissions from MSW collection and transport like dust and bio- aerosols, odors, and vehicle emissions; o Leachate from waste piles caused by exposure to precipitation and from residual liquids in the waste itself containing organic matter, nutrients, metals, salts, pathogens, and hazardous chemicals; o Litter during waste receipt, unloading, processing, and storage; o Noise and vibration by truck traffic; loading equipment (e.g., cranes, wheeled loaders), stationary compactors, balers, grinders, and other treatment and conveyance systems; o Air emissions from incineration; o Landfill leachate collection and disposal; and ESMF for IIFD A7-4 o Landfill Gas Emissions and Methane Capture and Management. Industrial Hazardous Waste o Spills and releases during waste transport; o Air emissions such as releases of particulate matter and VOCs from storage vessels and waste processing equipment; o Generation of wash water and runoff from waste management areas; o Air emissions associated with storage and transfer operations; o Wastewater from biological and chemical processes like runoff and leachate; o Solid waste residuals from biological and chemical treatments; o Incinerator bottom ash; and o Migration of hazardous constituents in land filled industrial hazardous wastes as leachate or in the gas phase. Telecommunications and informatics infrastructures (telecommunication networks and e- government infrastructure). Telecommunications Construction: o Site clearance for based towers and supporting infrastructure; o Access road construction and habitat fragmentation; o Waste and emissions generated during construction including air emissions, dust and aquatic sedimentation; o Aquatic impacts from cable laying including sea grass habitats and coral reefs; o Impacts on marine species from disturbance and noise during cable laying; o Habitat alteration/loss; o Hazardous materials and waste, such as fuels and other VoCs used in construction process. Operations: o Electric or magnetic fields, o Emissions to air, water and noise emissions; o Hazardous materials includes in the VOCs and the use of fuels. o Batteries in back up power for towers and risks from chemical leaks. Occupational Health: o Electrical Safety; o Electromagnetic fields; o Optical fiber optic safety; o Elevated overhead work; o Fall protection; o Confined spaces, motor safety. ESMF for IIFD A7-5 Electricity infrastructure (generation, transmission, distribution – including geothermal): Wind Power Terrestrial Construction: o Site prep, access; o Excavation and blasting; o Filling transport of supplies; o Infrastructure; o Overhead conductors; o Decommissioning (including removal and rehabilitation of construction equipment’s and sites). Offshore Construction: o Noise and Vibration; o Sedimentation and plumes; o Sea mammal migrations; and o Sand banks and erosion. Operational possible impacts: o Noise; o Biodiversity (bats and birds) strikes; o Visual impacts (flicker); o Landscape and visual impacts; o Access roads and habitat fragmentation (including bridges and jetties); o Vibration to sea life; o Sea bird strikes; o Navigation risks; Occupational Health and Safety: o Working at heights; o Confined spaces; o Working with rotating machinery; and o Falling objects. Community Health and Safety: o Aviation (lighting, think about insects birds and bats), o Marine safety and navigation, o Electromagnetic interference and radiation; and, o Abnormal loads and transportation. Geothermal Power Construction: o Site preparation and land clearance; o Emissions from construction vehicles; o Dust and Erosion; o Habitat loss; o Access road construction and Habitat fragmentation; o Transmission line construction and habitat fragmentation; o Construction of labour camps, waste management and decommissioning. Operations: o Water consumption, and impacts on aquifers; o Mineral substrate and heavy metal contaminates; o Solid contaminants (Sulfur); o Hydrogen sulfide emissions; ESMF for IIFD A7-6 o Water and Thermal discharge and contamination risks; and, coolant contamination; and o Ambient water temperature discharge. Occupational Health; o Heat Noise; o Confided spaces; o Electrical hazards; o Fire and explosion; o Chemical hazards; o Gases; o Community (water, traffic emissions); and emissions guidelines. Thermal Power Construction: o Site preparation and land clearance; o Emissions from construction vehicles; o Dust and Erosion; o Habitat loss; o Access road construction and Habitat fragmentation; o Transmission line construction and habitat fragmentation; o Construction of labour camps, waste management and decommissioning. Operations o NOx and SOx; o Heavy Metals and GHG's; o Particulate matter through filters and electro static precipitators; o Particulates in transfer and storage; o Thermal discharge; o Water consumption for cooling; o Waste dry and liquid, heavy metal concentrations (fossil fuel based); o Storage and transport of fuels; o Noise; Occupational Health; o Heat Noise; o Confided spaces; o Electrical hazards; o Fire and explosion; o Chemical hazards; o Community (water, traffic emissions); and o Emissions guidelines. Transmission Lines Construction: o Waste generation; o Soil Erosion; o Fugitive dust and other emissions, such as construction vehicles; o Noise pollution o Hazardous materials such as oil spills.; o Habitat alteration (terrestrial as well as aquatic); o Electric magnetic fields, and Hazardous Materials; o Right of way construction causing habitat fragmentation, and loss of wildlife habitats; o Introduction of non native invasive species; ESMF for IIFD A7-7 o Visual and noise disturbance by maintaining equipment’s in that locality. o Presence of workers, i.e. camps and associated waste, maintenance and decommissioning; o Impacts of construction of bridges, and roads for access on aquatic habitats (both in construction and maintenance phases).; and o Impacts from laying ocean cables on sea grasses, localized plumes and impacts on coral areas. Operational issues: o Maintenance of rights of way vegetation controls in the form of land clearance. o Overhead risks to bird and bat; o Hazardous materials Sulfur Hexafluoride (SF6); o Fuels for construction vehicles; and o PCBs' handling and disposal for retrofitting old transmission lines. Occupational Health Considerations: o Live Power; o Working at Height; o Electric magnetic fields; and o Chemical exposure. Community Health: o Electrocution; o Electromagnetic interference; o Visuals, noise and ozone; and o Aircraft navigation. ESMF for IIFD A7-8 Appendix A9 Note on Free, Prior and Informed Consultations APPENDIX A9 NOTE ON FREE, PRIOR AND INFORMED CONSULTATIONS 1. Indigenous Peoples or Masyarakat Hukum Adat (Customary Law Communities) may be vulnerable to the loss of, alienation/resettlement from or exploitation to natural and cultural resources. IPs communities are often among the poorest of the poor in the community and closely tied to their settlements, lands and related natural resources upon which the sustenance of their livelihoods depends. Frequently, these lands and settlements are traditionally owned or under customary use and often not legally recognized by national laws. In recognition of this vulnerability, interventions introduced through this project with the objectives to improve land administration and address informal settlements may potentially alienate and/or displace IPs if the mechanisms for Free, Prior and Informed Consultations (FPICs) to obtain broad support are not built into project design and implementation. 2. Objective. The extent, frequency and degree of engagement required by the consultation process should commensurate with the identified project risks and adverse impacts and with the concerns raised by affected IPs. FPICs are built on mutually accepted process between affected communities and project actors. FPICs serve at least two purposes: a. Provide a platform to undertake a process of consultations in good faith and in a manner that provides affected IPs with opportunities to express their concerns and views on the sharing of development benefits, risks, impacts, and mitigation measures and explore ways to leverage culturally and socially acceptable benefits. b. Provide a two-way mechanism for GCA to engage with IPs and their organizations, including Adat councils, community groups to consider and respond to the views and concerns expressed by affected IPs prior to project execution. 3. Procedures. FPICs should be orientated towards obtaining broad community support and by which, broad community support consists of a collection of expressions by affected community members and/or their recognized representatives in support of the proposed project/sub-project activities. Although FPICs do not necessarily require unanimity and in some instances, decisions may be achieved even individuals or groups within the community disagree, FPICs lay out organized and iterative processes through which decisions and measures adopted by the project incorporate the views of the affected IPs on matters that affect them directly. 4. The Community Participation Framework needs to be built on gender-sensitive and inter-generationally inclusive approaches. Effective FPICs are built upon two-way processes that should: a. Involve members of affected communities and their recognized representative bodies and organizations in good faith. b. Capture the views and concerns of men, women and vulnerable community segments including the elderly, youth, displaced persons, children, people with special needs, etc. about impacts, mitigation mechanisms, and benefits where appropriate. If ESMF for IIFD A8-1 necessary separate forums or engagements need to be conducted based on their preferences. c. Begin early in the process of identification of environmental and social risks and impacts and continue on an ongoing basis as risks and impacts arise. d. Be based on the prior disclosure and dissemination/socialization of relevant, transparent, objective, meaningful, and easily accessible information which is in a culturally appropriate language(s) and format and is understandable to affected IPs. In designing consultation methods and use of media, a special attention needs to be paid to include the concerns of Indigenous women, youth, and children and their access to development opportunities and benefits. e. Focus on inclusive engagement on those directly affected than those not directly affected; f. Ensure that the consultation processes are free of external manipulation, interference, coercion and/or intimidation. The ways the consultations are designed should create enabling environments for meaningful participation, where applicable. In addition to the language(s) and media used, the timing, venues, participation composition need to be carefully thought through to ensure everyone could express their views without repercussions. g. Be documented. 5. In deciding whether to proceed with the project, the GCA with inputs from consultants and experts a ascertains on the basis of social assessment and FPICs whether affected IPs provide their broad support to the project. Where there is such a support, GCA should prepare: a. Documented evidence of FPICs as well as measures taken to avoid and minimize risks to and adverse impacts of the affected IPs. This includes list of participants, meeting minutes and other documentation (e.g. photos, video, etc.); b. Additional measures, including project design modification, alternative locations, and where applicable compensations to address adverse effects on affected IPs and to provide them with culturally and socially appropriate benefits; c. Action plan and recommendations for FPICs during project implementation, monitoring, and evaluation, and d. Any formal agreements reached with affected IPs and/or their representative organizations. 6. The World Bank will review the process and the outcome of the consultation carried out by GCA to satisfy itself that the affected IPs have provided their broad support to the project. The Bank does not proceed further with project processing if it is unable to ascertain that such support exists. 7. Requirements. To ensure that FPICs can be ascertained, the following requirements are needed to determine whether: a. The level of engagement in a way that enables informed participation of affected IPs is acceptable; b. The level of support and dissent among affected IPs for the project is taken into account into decision making and development of mitigation measures. ESMF for IIFD A8-2 Consideration Requirements Project’s strategy and principles on - Community Participation Framework to mainstream FPIC; engagement - Project Operational Manuals on FPICs; - Budget and personnel provisions; - Consultation schedules and other supporting documentation. Stakeholder identification and - Stakeholder analysis as part of the Social Assessment; analysis Community Engagement - Consultation plan, public consultation and disclosure plan, and stakeholder engagement plan; - Schedule and record of community engagement including discussions and consultations with community members and their representatives. Information disclosure - Disclosure plan, including schedules - Materials prepared for disclosure and consultations; - Record/minutes of discussions/consultations with community members and their representatives Free, Prior, and Informed - Record/minutes of discussions/consultations with community Consultations members and their representatives; - Documentation of measures taken to avoid/minimize risks to and adverse impacts on affected IPs based on community feedback; - Draft of Action Plan; Consultations with vulnerable - Engagement and public consultation plan groups - Record/minutes of discussions/consultations with members and representatives of vulnerable groups - Documentation of measures taken to avoid/minimize risks to and adverse impacts on vulnerable groups based on community feedback - Draft of Action Plan Grievance redress mechanism - Organizational structure and responsibilities and procedures to manage grievances; - Record of grievances received, including expressions of support or dissent; - Record/minutes of discussions with community members or representatives with regards to grievance redress. Feedback to affected IPs (to - Documentation of risk mitigation measures demonstrate that concerns and - Record/minutes of discussions with community members and their recommendations have been representatives; accommodated in the project and - On-going reporting on implementation of Action plan; rationale why recommendations - Revisions in project/sub-project activities and Action Plan; have not been accommodated) - Surveys/interview records of affected IPs. Formal expressions of support or - Record/minutes of meetings/public consultations with community dissent members and their representatives; - Formal letters/written petitions of support/objection submitted by the community and/or their representatives; Informal expressions of support or - Photographs, media reports, personal letters or third party accounts objection (NGOs, CBOs, etc.) Evidence of good faith consultations - Face-to-face interviews with community members/representatives in the consultations; - Agreements reached with affected IPs (e.g. MoU, Letters of Intent, Joint Statements, etc.) - Action plan, e.g. benefit sharing, development plan, etc. ESMF for IIFD A8-3 Appendix A10 Format of Indigenous Peoples Plan (IPP) APPENDIX A10 FORMAT OF INDIGENOUS PEOPLES PLAN (IPP) The following template presents the outline of an IPP. The template can be further developed based on field conditions and as per characteristics of the Project Activity. Title of Chapter/Sub- Content/Remarks Chapter 1. DESCRIPTION OF THE PROJECT Summary Description of Project Activity (concerning area boundary, location, type of occupation, area size, area of influence, etc.) 2. SUMMARY OF SOCIAL ASSESMENT 2.1.Baseline Data on IPs  Baseline information on the demographic, social, cultural, and political characteristic of the IPs community, the land and territories traditionally owned or customarily used or occupied and the natural resources that they depend  Identification of key project stakeholders and elaboration of culturally appropriate process for consulting with the IPs at each stage of project cycle 2.2. Summary of results of the free, prior, and informed consultations with the affected Indigenous Peoples’ communities that was carried out during Project Activity’s preparation and led to broad community support for the Project Activity  Identification of potential adverse and positive effects of Project Activity of the affected IPs within the Project Activity’s area of influence  Development of measures necessary to avoid adverse effects or identification of measures to minimize, mitigate, or compensate for such effects and ensure that IPs receive culturally appropriate benefits from the Project Activity  Mechanism to prepare and implement the public consultation with the Indigenous People (consultation concerning the draft Project Activity plan, etc. as relevant), to include: determination of location and schedule of consultation, information dissemination /invitation, etc.  Public consultation process  Result/resolution and mutual agreement obtained during consultation meeting.  Number and representative of organization/institution presented by participants in the said consultation meeting. 2.3. A framework for ensuring the free, prior, and informed consultations with the affected IPs communities during project implementation 3. ACTION PLAN (INPUTS FROM THE RESULTS OF THE SOCIAL ASSESSMENT) 3.1. Activities for IPs to receive social and economic benefits 3.2. Activities to avoid, minimize, mitigate, or compensate for adverse effects 3.3. Measures to Enhance the Capacity of the Project Management 3.4. Consultation with the affected IPs on the Draft IPP 4. COST ESTIMATE AND FINANCING PLAN In form of table containing information about: type of activity, party in charge, timeline/milestones, cost, funding source, and remarks. 5. INSTITUTIONAL ARRANGEMENT TO IMPLEMENT IPP  Agencies responsible for managing the implementation of the Indigenous Peoples Plan  Agencies responsible for reporting and monitoring on the implementation of the Indigenous Peoples Plan  Arrangements for monitoring of the implementation of the Indigenous Peoples Plan by the affected IPs 6. GRIEVANCE REDRESS MECHANISM ACCESSIBLE TO THE AFFECTED IPs  Mechanism for managing grievances as suggested by the results of the Social Assessment results 7. PROJECT MONITORING, EVALUATION, AND REPORTING OF IPP IMPLEMENTATION Includes arrangement for free, prior, and informed consultation with the affected IPs  Explaining the Work Plan for monitoring implementation of IPs and Reporting Mechanism. ESMF for IIFD A9-1 Title of Chapter/Sub- Content/Remarks Chapter  Monitoring on progress implementation of IPP  Monitoring on process implementation of IPP  Reporting on implementation of (report to whom, which format to use, and deadline for submission of the report). ATTACHMENT Attach original or copy of documents as relevant to IPP, for example:  Information about the Project Activity (Map)  Table containing Baseline Data of IPs  Minutes of Dissemination and Consultation Meetings  Minutes of Agreement on Compensation Plan (if any) based on the consultations  Other relevant documentation ESMF for IIFD A9-2 Appendix A11 Social Assessments APPENDIX A11 SOCIAL ASSESSMENTS 1. Objectives. The purpose of Social Assessment (SA) is to evaluate the subproject’s potential positive and adverse effects on the Indigenous Peoples in the case that Indigenous Peoples are present in, or have collective attachment to the project area (based on the screening in accordance with the four criteria as specified in the World Bank OP 4.10 and criteria on Masyarakat Hukum Adat and/or local values), and to examine project alternatives where adverse effects may be significant. The breadth, depth, and type of analysis in the SA are proportional to the nature and scale of the proposed subproject’s potential effects on the Indigenous Peoples, whether such effects are positive or adverse. In carrying out an SA, the city government will have to be assisted by a consultant team or individuals who are social scientist whose qualifications, experience, and terms of reference are acceptable to the GCA. Experts from local universities or local NGOs who have worked and have experienced in working with the IPs are encouraged to assist the city government. 2. Outline of the SA. The SA will at least cover the following: a. Description of Subproject Activity b. Information about the Subproject Activity’s site and condition of the cultural community c. Social Economic Characteristics of the affected Indigenous Peoples’ community i. General Characteristics of IPs ii. Specific characteristics of IPs  Cultural Social Institutions  Economic Condition and Source of livelihood for villagers  Cultural practices  Etc. iii. Stakeholders assessments d. Consultation process during the Social Assessment reflecting a free, prior and informed consultation that leads to broad support from the affected IPs community on the proposed Subproject Activity. e. Findings and potential Subproject Activity’s impacts (positive and adverse). i. Any potential negative (give examples)  Economic domination by outsiders  Transfer of ulayat rights  … ii. Proposed Mitigation (give example)  Mitigation related to domination by outsiders  … iii. Potential positive impacts and efforts to maximize these impacts f. Proposed Action Plans in form of a table containing (to be included in the Draft IPP): i. Plan to maximize the positive impacts ESMF for IIFD A10-1 ii. Negative issues as findings from the study which needs mitigation iii. The mitigation program iv. Subproject Activities within the mitigation framework v. Location where the impact and mitigation is going to be done vi. Consultation framework for preparing and implementing IPP vii. Institution in charge for preparing and implementing IPP viii. Schedule for implementation ix. Budget x. Source of budget xi. Remarks (other matters needs to be put in the report) ESMF for IIFD A10-2 Appendix A12 Documentation from Public Consultation of Draft ESMF (Dec. 21 2015, and Jan 21, 2016) ESMF for IIFD A11-1 ESMF for IIFD A11-2 ESMF for IIFD A11-3 ESMF for IIFD A11-4 ESMF for IIFD A11-5 ESMF for IIFD A11-6 ESMF for IIFD A11-7 ESMF for IIFD A11-8 ESMF for IIFD A11-9 ESMF for IIFD A11-10 ESMF for IIFD A11-11 ESMF for IIFD A11-12 ESMF for IIFD A11-13 ESMF for IIFD A11-14 ESMF for IIFD A11-15 ESMF for IIFD A11-16 ESMF for IIFD A11-17 ESMF for IIFD A11-18 ESMF for IIFD A11-19 ESMF for IIFD A11-20 ESMF for IIFD A11-21 ESMF for IIFD A11-22 ESMF for IIFD A11-23 ESMF for IIFD A11-24 a ESMF for IIFD A11-25