Indonesia - Second National Program for Community Empowerment in Urban Areas Project : resettlement plan (Vol. 1 of 2) : Safeguard policy issues

RP923 Safeguard Policy Issues INDONESIA: Second National Program for Community Empowerment in Urban Areas (PNPM Urban-II) Introduction This project is an expansion of all UPPs as well as PNPM Urban-I and AF activities within previously covered kelurahans and into newly activated kelurahans, respectively. The project triggers the Bank's policies of Environmental Assessment (OP/BP 4.01), Involuntary Resettlement (OP/BP 4.12) and Indigenous Peoples (OP/BP 4.10). Although unlikely, the latter policy was triggered to anticipate should there be IP affected by the project in Kalimantan and Papua. The project will use safeguards policies which have been adopted by the UPP projects and PNPM Urban-I and AF. With regards to environmental issues, the project remains as a Category B. 1. Implementation was completed for UPP 1, while the remaining series of UPPs (UPP 2, UPP 2 AF, and UPP 3) and PNPM Urban-I and AF are under implementation, with mostly small-scale subprojects (i.e. public toilets, local roads, drainage and sanitation, water facilities, housing improvements, etc.) currently being implemented by community groups. The safeguard measures put in place have so far been adequate to mitigate any safeguards issues. 2. The project will adopt the Environmental Guidelines, Land Acquisition and Resettlement Policy Framework and IVP Framework that have been adopted by the UPPs and the PNPM- Urban I and AF. 3. These frameworks have been elaborated in the project manual and technical guidelines. The project manual and technical guidelines will be continuously updated to accommodate lessons learned pertaining safeguards.. The following summarizes the experience under UPP 2 and UPP 3 with regard to safeguard policy issues, mainly for small-scale sub-project investments: Environmental Issues About 49,100 infrastructure subprojects were financed, at a total cost of US$22.6 million, indicating an average size of subproject of US$460 (Rp.4.2 million). These consisted mainly of tertiary roads and bridges improvement (40%), drainage activities (16%), public toilets (11%), sanitation activities (1.5%) and water supply (11.6%). The table below provides a breakdown for subprojects in UPP 2 and UPP 3. The small size and nature of these activities meant that there were no adverse environmental impacts, and standard operating procedures for environmental mitigation (as per Environmental Guidelines for PNPM-Urban) proved to be adequate.  Number of BKMs Community No Type of Activities Volume Unit Cost (IDR) undertaking Contribution Activities Improvement of local 2430 5,913,788 meter 82,485,413,256 98,691,900,892 1 roads 2 Drainage 1765 2,059,240 meter 32,356,036,299 15,533,499,656 3 Water Supply 1455 109,585 units 24,189,840,191 4 Public Toilets 1575 19,523 units 23,274,980,037 23,923,141,230 5 Solid Waste 541 13,672 units 2,978,125,441 6 Others 756 28,621 8,205,745,919 3,548,529,914 TOTAL 8522 173,490,141,143 141,697,071,692 Land Acquisition and Involuntary Resettlement An insignificant number of involuntary resettlement, triggering OP 4.12, occurred under UPPs and PNPM Urban-I and AF. For infrastructure projects there has been a high level of voluntary contributions from communities in the form of cash (towards investment costs), in the form of labor, and in the form of land. In these cases, contributions have been recorded in the project proposals, which have been reviewed by the OCs and ratified by the BKMs. Since the average cost of subprojects is so low (US$460, the ceiling for individual subprojects per group is Rp.50 million or US$5,050), voluntary land contributions for each subproject have also been minor, mainly for alignment of roads and water and sanitation facilities. Thus far, there have been no land related complaints or grievances. Indigenous Peoples or Isolated Vulnerable People (IVP) There were no IVPs involved or affected in UPP 2 and UPP 3. Neither in the PNPM Urban-I and AF. Because PNPM-Urban is implemented in urban areas, it is unlikely that the project will affect IVPs. However, the project anticipates that IVPs like native Papuans and Dayaks in Papua and Kalimantan may be affected. To date, UPP 3 in urban areas in both Papua and Kalimantan have not involved nor affected IVPs. The nature of the project, with its emphasis on community development, empowerment and participation, and its use of local facilitators and volunteers for implementation, is such that there is unlikely to be a negative impact on IVPs due to project activities or a deprivation of IVPs' benefits. In the case that IVP is affected, they will be part of the beneficiaries who will involve in the participatory consultation during the preparation of the sub-project proposals and implementation. Therefore, a specific Indigenous People's Development Plan was not considered necessary for PNPM-Urban. Due to socio-political sensitivity and the history of conflict in these islands, IVPs may need special attention to ensure that their voices are heard and that they are included in decision making. As a result, the Framework for the Treatment of IVPs developed for UPP 2 and used in UPP 3 will also be used in PNPM-Urban. Because the dynamics of the sensitivity will be different and specific to local circumstances, a situational analysis will be carried out prior to implementation of the project in Papua particularly, to determine whether any design changes may be necessary. Any required changes will be incorporated in the Project Manual. Feedback will also be sought from the PNPM Rural operating in the same areas to determine the most effective way of ensuring the full participation of IVPs in the project.  Environmental Guidelines for PNPM-Urban Second National Program for Community Empowerment in Urban Areas (PNPM Urban-II) Introduction 1. As a highly decentralized project, PNPM-Urban will support a large number of small subproject investments in urban areas. It is expected to provide microloans for income generating activities, and finance small scale infrastructure and other services (the ceiling for individual subprojects per group is Rp.50 million or US$5,050), through the kelurahan grants. The low ceiling for individual activities, combined with the types of activities expected to be financed (road/bridge improvements, tertiary drainage, water supply to individual households, garbage collection through handcarts) indicate that none of these investments is expected to have any large scale, significant or irreversible impacts. Environmental impacts would come mostly from poor site management during project construction activity; it is therefore, good housekeeping will be highly promoted. 2. The project has been classified as a Bank environmental category B. This part outlines the environmental screening procedures and guidelines to identify, to review, and red-flag procedures to ensure that problems are corrected. Indonesia's environmental review procedures are generally consistent with the Bank's and will form the framework of PNPM-Urban's approach to environmental management. Basic Principles 3. The basic environmental principles are: 1. Proposals should avoid or minimize negative environmental impacts, and they should have explored viable alternative designs to minimize any negative environmental impact; 2. Proposals should fit into the General Spatial Plan (RUTR, Rencana Umum Tata Ruang) and avoid protected areas so designated by the Ministry of the Environment (see below). 3. Any proposal entailing a negative environmental impact shall be complemented by an environmental plan to mitigate the impact. Environmental Screening Criteria 4. Subprojects will be checked against Government of Indonesia (GOI) screening criteria to ensure that no project would necessitate a full environmental assessment. In an initial screening, the project type, scale, location, sensitivity, and the nature and magnitude of potential impacts, will be identified to classify the proposal in one of four categories:  1. Those that require ANDAL (full Environmental Assessments) for which the Ministry of Environment has set criteria (see below). These will be eliminated from consideration for PNPM-Urban financing. 2. Those that require environmental management and monitoring plans (UKL and UPL) based on limited but site specific studies. The Ministry of Public Works has set criteria to determine the need for UKL/UPL (see below). It is expected that none of the proposals submitted under either the PAPG or kelurahan grants would fall under this criteria. However, this would apply for sub-projects to be financed under the KBG NUS. 3. Those for which standard operating procedures (SOP) suffice, where generic good practice would protect the environment adequately. The DG Human Settlements has SOP guidelines for some types of projects (including measures to control dust, noise and traffic at construction sites; specifications for backfilling and revegetating disturbed areas to prevent erosion; and procedures to control negative impacts at solid waste transfer stations; etc.). It is expected that some subprojects may fall under this category. 4. Those that require no environmental study, where no construction, disturbance of land or water or discharge of pollutants are involved. It is expected that some subprojects may fall under this category. Government Environmental Screening Criteria (by Decree of the Minister of State for the Environment of the Republic of Indonesia) Sectors and Projects Units ANDAL UKL/UPL Water Supply Raw water intake L/s 250 50