Indonesia - Additional Financing BOS Knowledge Improvement for Transparency and Accountability Project

Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 04/06/2010 Report No.: AC5118 1. Basic Project Data Original Project ID: P107661 Original Project Name: Indonesia - BOS Knowledge Improvement for Transparency and Accountability Country: Indonesia Project ID: P119125 Project Name: Indonesia - Add'l Financing BOS Knowledge Improvement for Transparency and Accountability Task Team Leader: Ratna Kesuma Estimated Appraisal Date: April 5, 2010 Estimated Board Date: May 25, 2010 Managing Unit: EASHE Lending Instrument: Specific Investment Loan Sector: Primary education (70%);Secondary education (30%) Theme: Education for all (100%) IBRD Amount (US$m.): 500.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 3,302.70 3,302.70 Environmental Category: C - Not Required Simplified Processing Simple [X] Repeater [X] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) Yes [ ] No [X] 2. Project Objectives The development objective for BOSKITA remains unchanged i.e., "To improve access to quality education in Indonesia for all children of ages 7 to 15 by strengthening school- based management and community participation, improving existing fiduciary arrangements for greater transparency and accountability of the BOS program and, consequently, bringing about better utilization of BOS funds." 3. Project Description The original BOSKITA loan reimbursed $600 million of the approximately US$ 2.2 billion of MoNE's BOS program, or about 23 percent of the Government's expenditure in school year 2008-09 and about 32 percent in 2009-10. The Additional Financing of US$500 million is also an IBRD loan, and will bring the total BOS-KITA financing to US$1.1billion. The proposed additional loan will reimburse a portion of the Government#s BOS grants made to public and private primary Page 2 and junior secondary schools under the auspices of MoNE for school years 2010-11 and 2011-12, and undertake activities that will enhance the implementation of BOS-KITA, and help #scale up# the project's development effectiveness. While the strong fiduciary arrangements will be continued (as per the original BOS-KITA loan), the proposed activities will, in addition support; (i) school based management practices more directly and; (ii) strengthen the role and responsibilities of local governments for the BOS program. These activities are consistent with the project development objective and outcomes, which remain the same under Additional Financing. These reforms will be initiated through: (i) further refinements to the BOS Manual; (ii) piloting activities such as improved monitoring by grant funding; (iii) improving the content of the training to GoI and school committees to tackle real implementation issues being faced by schools; and (iv) issuance of circular letters from the central government to strengthen the role and responsibilites of local governments in BOS implementation. 4. Project Location and salient physical characteristics relevant to the safeguard analysis All over the Republic of Indonesia. The BOS program provides support to all children aged 7-15 who are enrolled in schools, including public or private schools. 5. Environmental and Social Safeguards Specialists Ms Indira Dharmapatni (EASIS) 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Environmental Safeguards The project will not finance any civil works and is not expected to have any adverse environmental impacts. Therefore, the project does not trigger any of the Bank#s environmental safeguard policies and is an environmental category 'C' program. Social Safeguards Page 3 The project does not involve land acquisition. Therefore, OP 4.12 on Involuntary Resettlement and OP 4.11 on Physical Cultural Resources are not triggered by the project. Indigenous Peoples The Bank#s policy on Indigenous Peoples (OP/BP 4.10) is not triggered because the BOS program does not target communities of Isolated and Vulnerable Peoples (IVPs), which are normally considered #Indigenous Peoples# in Bank projects. The BOS program provides grant funds to all schools in Indonesia, about 80 percent of which is used to finance school operating expenditures, and about 20 percent is used to finance goods, maintenance and other services in the schools. The BOS program monitors the use of those funds in schools; it does not target, or measure the impact of the program on, communities or individuals. Since the BOS program targets all schools and students in Indonesia, including children in communities of IVPs, such children could benefit from the BOS program through increased enrollment, improved student retention, and increased resources at the school level. However, the BOS program does not involve any intervention directed at any particular community. The BOS program includes a social marketing and information campaign to promote transparency and accountability by making all communities aware of the BOS program#s transfer of funds to schools and the ways in which the schools may use the funds. Outside the purview of the BOS program, the MoNE considers the needs of IVPs through a range of its education policies, including school-based and local-based curriculum content options, which allow for representation of IVPs and minorities, as well as special schools in very remote places and border areas. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: See above. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. See above. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. See above. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. See above. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Page 4 Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? No Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? No All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the Page 5 borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Ms Ratna Kesuma 02/19/2010 Environmental Specialist: Social Development Specialist Ms Indira Dharmapatni 03/02/2010 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Panneer Selvam Lakshminarayanan 04/06/2010 Comments: Sector Manager: Mr Eduardo Velez Bustillo 03/20/2010 Comments: