E828 v.2 November 2003
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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Attachment 9 Safeguard Framework 1. The Nature of The Project E828 v.2 November 2003 a) The development objective of the proposed Initiatives for Local Governance Reform Project is to support governance reform in 40 district (Kabupaten) governments selected on a competitive basis. The project would support poverty reduction linked to improvements in governance through capacity building interventions. The project would support a series of graduated reforms in public disclosure and civic participation in local budget planning, and execution, development of enhanced local poverty alleviation strategies, improvements in financial management and procurement and improvements in local revenue generation. Investment support would also be provided to finance priority rural infrastructure identified through participatory local government poverty alleviation strategies. b) The aim of the project is to support good local governance that will encourage participatory and inclusive decision-making, transparency, more accountability and more demand-responsive public service system. Based on the project criteria, an initial list of 22 Kabupatens were identified as potential "candidates" in the following 9 provinces (Gorontalo, North Sulawesi, South Sulawesi, Central, East and West Java, Jogjakarta, Banteng, and West Sumatra). c) Since this is a decentralized and participatory project, the sub-project investment will not be determined in advance (before loan negotiation). Therefore the project will establish a framework for safeguard rather than specific measurement. The framework will be built as part of the overall reform package that has to be agreed by the Bupati of participated kabupaten. d) The reform package is about participation, transparency, inclusiveness (especially the disadvantage group which will get special attention to be included in the decision making processes) and sustainable development (including environmental sensitivity). Some institutional development related to safeguard will be part of capacity building within the project. e) The safeguard framework will be simple, easy to understand and manageable within the project framework without jeopardizing safeguard principles, so that all stakeholders involved in the decision making could have a clear understanding. f) The project will not allow any investment that will create significant adverse and irreversible environment impact and infrastructure investment that have resettlement problems beyond the capacity of the project framework, such as a big dam project, project that will displaced more than 200 people, or project that the safeguard action plan cannot be prepared within one year period. Investment related to tobacco, ozonedepleting substances, chemical pesticide, asbestos, serious hazardous waste would not be financed under this project. Each sub project will be a rural infrastructure that the less than 120,000 US $. g) The project will not include kabupaten investment project where the indigenous peoples impact problems cannot be solved within the project framework. h) The indigenous people issues will only be occurred in a South and North Sulawesi provinces and in Baduy area in Lebak (Banten province). In most cases the IP live page I of 9
2 inside protected forest area, therefore it is basically not related to the investment of this project. i) The investment should avoid protected areas such as Baduy area or Kajang Dalam area unless part of the objective of the activity is to protect the area and it should be designed in accordance with the government of Indonesia's protected area requirement 2.1. Environment Procedures 2. Basic Principles There are three key stages (studies for the proposal, design and implementation), all three involving public consultation. The procedures at each stage are summarized below: In an initial screening, the sub project type, scale, location, sensitivity, as well as the nature and magnitude of potential impacts, will be identified to classify the proposal in one of 4 categories: i) Those that require environmental management and monitoring plans (UKL and UPL) based on limited but site specific studies. The ministry of Publics Works has set criteria to determine the need for UKL/UPL, and the Ministry of the Environmental has set criteria for ANDAL. ii) Those for which standard operating procedures (SOP) suffice, where generic good practice would project the environmental adequately. DG Urban Planning and DG Water Resources have SOP guidelines for some types of activities (such as erosion control of road back filling and re-vegetating, solid waste handling procedures, traffic, raw materials control at construction sites); iii) Those that require no environmental study, where no construction, disturbance of land or water or discharge of pollutants are involved; iv) Those that require a full environmental assessment (ANDAL) plus environmental,management plan (RKL) Additional Screening Criteria (Negative List) Ozone-depleting substances, tobacco or tobacco products: No subprojects using or producing these materials will be financed. Asbestos. No asbestos-containing materials will be financed. Special mitigation measures to address any issues with existing asbestos in any proposed sub-project (e.g. renovation of buildings that may have used asbestos) will be applied. page 2 of 10
3 Hazardous materials and wastes. No sub-project will be financed that uses, produces, stores or transports hazardous materials (toxic, corrosive or explosive) or generates "B3" (hazardous) wastes. Development in protected areas. No subproject will be financed that would be located in a protected area or might change the purpose and/or designation of a protected area. Protected areas are identified in The Decree or the Minister of the State for the Environment of the Republic of Indonesia Number KEP- 17/MENLH/200 1, entitled Concerning the Types of Businesses Activities Required to Complete an Environmental Impact Assessment. The list includes notably: forest protection area; marine/freshwater conservation areas; nature tourism park; areas surrounding lakes and reservoirs; coastal mangrove areas; national parks; coastal edges; forest parks; cultural reserves; areas surrounding springs; scientific research areas; and nature conservation areas. World Bank O.P. 4.04's prohibition on conversion of critical natural habitat also applies and would take precedence over KEP-17 in case of conflicting results. Cultural Property. No sub-project will be financed that would degrade or damage cultural property, including not only physical artifacts and structures but also sites considered sacred or otherwise having spiritual importance. Natural Habitat. No sub-project will be financed that would involve conversion of critical natural habitat Indigenous Peoples a) Indonesia has hundreds ethnic groups, originally Indonesian, culturally distinct, have different languages and, since Indonesia still predominantly agriculture have closed attachment to natural resources in their areas. One ethnic group could nationally be majority or proportionally high but in particular island or kabupaten that group is the minority and vulnerable. Indigenous people in Indonesian context is the minority ethnic group that is vulnerable and isolated in particular area due to (i) their dependence to their natural habitat and sensitivity to the change of it natural habitat and also (ii) their distinct socio-cultural behavior and system. The economic vulnerable and disadvantage group will get special attention in the kabupaten forum decision making process and in kabupaten poverty reduction strategy, but they are not categorized as indigenous people. b) There should be a non governmental organization in the poverty working group that has serious concern and works with the indigenous people. c) The indigenous people should obtain relatively equal benefit of the project compare to other beneficiaries. The project should taken into account their distinct characteristic, law and values in the investment design. d) The project should avoid and minimize potentially adverse effects on indigenous people. e) The safeguard team in kabupaten where there indigenous people would be related or affected should have an NGO that concerned to the IP group in its member. f) The sub component of the project will consider have a potential impact if (i) it cover the whole kecamatan in the kabupaten that have IP and those project have a potential page 3 of 10
4 benefit or adverse impact to the IP or (ii) it will be in the specific kecamatan that has IP. In this project only Kajang Luar community that would be related to the project. The community has been involved (during this project preparation) in participatory poverty assessment process and in the formulation of poverty strategy and development strategy for kabupaten. g) The indigenous people group should get an opportunity to discuss independently (or together with concerned NGOs) and to have an independent view of the project. The kabupaten government and the facilitator have to facilitate this independent process. h) If the investment proposal is targeted the IP as its main beneficiaries, the IP has the right to refuse the investment. i) This framework principles are based The World Bank operational manual OD Land acquisition a) The investment proposal should avoid or minimized the impact of land acquisition and resettlement. The impact that not only on their land, shelter and cost of moving to other location but also loss of assets, access to assets and income sources or mean of livelihood The investment proposal should have explored viable alternative to minimize these. b) The investment proposal should transparently include the cost of land acquisition, be agreed by all related stakeholders in kabupaten including the project-affected people. The displaced people (DP)' should have an opportunity to have a separate discussion and agree with the term of compensation and or resettlement. In the event that the consensus and acquisition cannot be reach within a year, the investment proposal should be change. c) Land acquisition should not make the living conditions of the DP worse off. The DP has the right to get real replacement cost compensation such as cash compensation equal to the real market price of land and assets (such as building, trees and other productive assets) in similar place 2 in the neighboring area. The other related cost such as moving cost, land transfer, rearrangement of land certificate and taxes should be borne by the government. d) The compensation for renter, sharecropper or agricultural laborer that have to move their activities to other places are at least equal to (i) three month rent, (ii) the value of the harvest for that season of those particular land and crops (or give the opportunity for them to harvest that first) or (iii) a total income of the labor in that season. e) The DP should agree with the compensation or to voluntarily contribute part of their land to the project. A meeting among DP that facilitate by the safeguard team and the facilitator should be arranged to make sure that the DP could have their independent decision. 1 The displaced people means the individuals who own, rent or occupy land, buildings and or other assets attached to the land who, on account of the execution of land acquisition would have their standard of living, land related assets, access to productive asset, business and employment opportunity adversely affected. 2 Place which have similar land value, infrastructure, access to school - health facilities and employment opportunity page 4 of 10
5 f) Voluntary contribution can only be considered if the DP has direct benefit far exceeding the cost of that land (proof by mutual calculation signed by both side), only taking 10% of their plot area and a letter of approval sign by the DP after the DP have a separate discussion as describe in point b above and have a clear explanation of their right. The facilitator and the safeguard team have to make sure that there is no pressure to the DP to contribute their land. The agreement should be documented in a legal document. g) The investment proposal should already have the alignment of land needed, the number of DP, general information of the DP income and employment and the existing land price in the market, proposed by kabupaten government and NJOP (land tax form). h) The identification of the possible negative impact and monitoring of the implementation of land acquisition plan will be done by the safeguard team (see point 2.1.c). i) The national management consultant will assist and monitor, through reviewing yearly list of proposal, the environment requirement for the investment together with other safeguard requirement. j) This framework principle is based The World Bank operational manual O.D 4.12 and BP 4.12 page 5 of 10
6 3. Framework 3.1. Safeguard steps in ILGRP investment processes: ILGRP Months: 1 June 2 July D 3 August h 4 September 5 October 6 Novemnber 7 Decenber L APBD participatory planning Safeguard process that companied the APBD 8 January process: process: 9 February 0 Pre survey and Dinas list -+ Forming Safeguard and preparing ST survey 10 March 0 Musbangdes & workshop -* screening 1 for SG report on IP possible impact 11 Aprl 0 Musbang UDKP "I" - IP & possible other Safeguard consultation 12 May 0 Rakorbang plus o Creating Safeguard action plan & reporting 13 June 0 Forming implementation team & 14 July I lementing & monitoring SG action plan 15 August 17 Septenber 18 October 19 November _ 20 Decermber 0 Informal info on DAU 21 January 0 Draft from tim anggaran 22 February 23 March 0 Decision by DPRD 24 Apil 0 start the investnent -- - The SG re roject action finish 25 May _Monitoring SG/implementing SG 26 June 27 July 28 August 29 Septernber 30 October 31 Noventer 32 December 0 The investment finish Notes: Month 1 & 2 Month 3-8 Month 9: Preparation for facilitation in kabupaten PRSP in kabupaten Dinases ready with their preliminary proposal of project to be financed by APBD and ILGRP investment fund. Some dinases also start doing preliminary survey for the project; preliminary survey on the economic and technical feasibility study and the urgency of the project. page 6 of 10
7 Month 10: a. In the beginning of this month the safeguard team should already been established. The safeguard team is the team that will triggered this safeguard framework and monitor the implementation of this framework. The team is constitute of Sekda as coordinator, LH (environment) officer, land acquisition officer, related dinases, Bappeda staff who is responsible on the feasibility study of the APBD project, NGOs that focus on environment, human right/legal aids and indigenous issues. b. Together with the preliminary feasibility survey the team will determine whether there is a need for safeguard mitigation and action plan. If there is an indication that the IP will get impact, the team should inform the national management consultant cc. to the World Bank for further action. The NMC will responsible nationally to make sure that this framework will followed. The NMC should be equipped and trained to be able to do this task (so does the safeguard team in kabupaten). The training will be part of the project investment. c. During this month till the musbang UDKP the SG team will do the screening for safeguard: * IP: If there is IP in the related kecamatan, there should be a separate discussion in UDKP with the IP on the proposal and develop an necessary action plan in the proposal. If the proposal is related to the whole kabupaten such as school rehabilitation in kabupaten, there should be an action plan to make sure the IP will relatively get equal benefit from the investment. * Land acquisition (LA): If there is land acquisition in the related project, during the preliminary survey there should be a preliminary project alignment to determine who and the number of the affected people. Basic social economic survey should be done to determine and estimate the impact, possibilities to reduce the negative impact and the cost for compensation. The result should be reported to the NMC, sekda and cc. to the World Bank for further action. The action plan should be prepared. * Environment based of AMDAL, UKL, UPL regulation (KEP- 17/MENLH/2001 for AMDAL, KepMen Kimpraswil No.1 7/KPTS/M/2003 for UKL-UPL and governor decree for SOP). Further action should be done according to the regulation and should be discuss with related agency and NMC cc. to the World Bank. In case that there is a need for AMDAL Bapedalda province should be informed. * The World Bank will do a prior review to the first IP, LA, environmental issues in every kabupaten, and for the next the World Bank will only do a random post review; but in sensitive case reported (regular report from NMC)The World Bank will also have the right to do a prior review. * The national management consultant will assist and monitor, through reviewing yearly list of proposal, the safeguard requirement. The result of the review should be sent to The World Bank. Workshop between PRSP working group with Bappeda and dinases for synchronization between dinas project proposal and poverty strategy--> the output is list of priority. page 7 of 10
8 Month 11: Month 12: Monthl3-23 Month 24 Month In every proposal that have safeguard issue, the safeguard team should prepare an action plan and the pimpro (team leader) of that particular subproject should prepare a safeguard implementation team (such as team 9 in keppres 55 arrangement for land acquisition) to implement the action plan. List of project priority has been developed. Further preparation based on the priority of musbang UDKP. Project that will be financed by ILGRP has been determined. The cost of action plan should already been allocated and can be used for pre investment action plan (if the fund is not available the rakorbang has to postpone or cancelled the sub project from this year proposal. The safeguard implementation team should implement the pre-investment action plan. The safeguard team will monitor the process. Start of the investment. This could be started subject to the pre-investment safeguard has been finished satisfactory for the affected people and the safeguard team. If the sub project will be contracted any safeguard action that expected to be implemented by the contractor should included in the contractor contract. The project monitoring consultant should also have monitoring task in its TOR in their contract The safeguard monitoring team and the project monitoring consultant should monitor the implementation of the safeguard action plan that implemented during the implementation -* this mainly related to environmental safeguard Disclosure a. This framework should be discuss openly and agreed by the kabupaten stakeholder forum. b. This framework should be disseminated openly in the ILGRP kabupaten in easy to understand format. This leaflet will distribute to the related community and media in kabupaten c. The project affected people should have full understanding about their right according this framework and have sufficient time and opportunities to discuss among themselves to be able to come out with their own independent decision. d. Each decision and plan in safeguard should be disseminated widely, especially among the affected people. The safeguard team should monitor the implementation of the dissemination of this information. e. There should be an open grievance procedures and the complaint should be resolved (for pre investment action) before the budget team decision or before it is too late to page 8 of 10
9 fulfill the action before month 24 (first disbursement of the project) of the project. The solution for grievance during investment implementation should be implemented before the subproject ended. Any complain should be address to the safeguard team and they should mediate the complain with the related agencies. Complain that cannot be resolved in local level should be the attention of the NMC. NMC should drop the proposal that have serious conflict that cannot be resolved within one year cycle project. NMC should developed the procedure and disseminate it to the various local stakeholders Definition and threshold a. Environment Definition and the trigger - following the Indonesian environment law and regulations Serious impact 4 : Serious impact is if according to Indonesian law and regulation need AMDAL. b. Indigenous people Definition: is the minority ethnic group that is vulnerable and isolated in particular area due to (i) their dependence to their natural habitat and sensitivity to the change of it natural habitat and also (ii) their distinct socio-cultural behaviour and system. The trigger: the sub project will be consider have a potential impact if (i) it covers the whole kecamatan in the kabupaten that have IP and those project have a potential benefit or adverse impact to the IP or (ii) it will be in the specific kecamatan that has IP. Serious impact 3 : if based on the preliminary survey and the discussion with the IP, there will be: (i) a clear adverse impact to the IP or (ii) the project could potentially trigger a conflict. c. Land acquisition: The definition of voluntary land contribution: Voluntary contribution can only be considered if the DP has direct benefit far exceeding the cost of that land (proof by mutual calculation signed by both side), only taking 10% of their plot area and a letter of approval sign by the DP after the DP have a separate discussion as describe in point b above. The facilitator and Safeguard team have to make sure that there is no pressure to the DP to contribute their land. 3 It could also be based on the safeguard team consideration page 9 of 10
10 The trigger: The project need additional land that is not belong to the government or has been occupied by the community for more than a year. Simple impact: Only less than 1,5 meter of their land being cut and it is less than 10 % of their plot area. Serious impact 4 : a. There is more than 20 family has to move or need significant additional income due to the land acquisition. b. There is more than 40 family will lost their land more than 10 % of their land. 3.4 Safeguard organization in kabupaten Multi-stakeholder forum Povert TransparancN Other %%orking articipatory %%orkiinu group J orking group Implementing Dinas (coordinated under sekda) Safeguard team: Screening safeguard. prepare action plan & monitoring safeguard and inmestment implementation Coordiiiator: Sekda (Secretarx of the kabupaten) Dinases, Bappeda, LH office, related NGOs: IP, Human right, land issues & environment Pimpro Safeguard implementation team: Implementing safeguard action plan before and during investment Possible members: Implementing Dinas staff, LH local environment office, local land office, environmental consultant, sub project monitoring consultant, contractor, land acquisition officers (under sekda), village head etc. onitoring M page 10 of 10
11 3.5 Safeguard diagram: Preparation stage: Preliminary survey Environmental Impact Land acquisition(la) IP c. No IP IF - a. No LA No Need AMDA Need UKL/UPL s, b. There is LA d. as the main beneficiaries Need SOP t e. not as the main beneficiaries Social economic survey Report to Bapedalda, report to NMC cc. to World Bank WB and NMC. report to NMC cc. to World Bank special/separate discussion with IP '4, s Serious ;vact No serious impact group during PPA Do AMDAL Make UKL/UPL * f 1 Create Sop Need IP simple survey and Serious impact 4, 4 s r s r v s '~~~~~~~~~I recommendation Agreement from AMDAL commission Land acquisition action plan (based on the discussion with 4, r s tthe affected people) I Nf Incorporate environ ent conditional to the ' IP development plan incorporated in project proposal Implementing action plan the sub project proposal. & monitoring Infrastructure Investment stage: * Monitoring and action * Monitoring and action fr I page 11 of 10
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