Indonesia - Second National Program for Community Empowerment in Urban Areas Project : environmental assessement

E2378 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 annex 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