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East Java – Bali Power Distribution Strengthening Project

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East Java – Bali Power Distribution Strengthening Project *OFFICIAL USE ONLY PT PLN (Persero) East Java – Bali Power Distribution Strengthening Project Environmental & Social Management Planning Framework (Version for Disclosure) January 2020 *OFFICIAL USE ONLY BASIC INFORMATION 1. Country and Project Name: Indonesia – East Java & Bali Power Distribution Strengthening Project 2. Project Development Objective: The expansion of the distribution network comprises erection of new poles, cable stringing, and installation of distribution transformers. 3. Expected Project Benefits: Construction of about 17,000 km distribution lines and installation of distribution transformers in East Java and Bali 4. Identified Project Environmental and Social Risks: Social Risks. It is envisaged that this project will require (i) use of no more than 0.2 m2 of land for installation of concrete poles and approximately 4m2 for installation of transformers (either in cabinet of between two concrete poles or on one pole); limited directional drilling (approx. 200-300m) to run cables under major roads and limited trenching (usually less than 500m) in urban environments, and (iii) possible removal of non-land assets (primarily trimming or felling of trees) for stringing of conductors. While restrictions on land use within the existing right of way apply, the land requirements for the distribution network (lines and transformers) are considered manageable with normal mitigation measures. Project activities will not (i) require land acquisition, (ii) cause physical or economic displacement; and/or (ii) result in adverse impacts to Indigenous Peoples groups and/or members of ethnic minorities. Environmental risks are principally induced by the establishment of the network across natural habitats and potential impact on fauna (in particular avifauna and terrestrial fauna susceptible to access the distribution lines or transformers such as monkeys or other tree dwelling scavenging animals that frequent semi urban environments), and the management of waste (e.g. end-of-life transformers, in particular the mineral oil they contain). During construction phase, construction and maintenance activities present significant occupational health and safety risks to Project Workers (including Company employees, contractors and sub-contractors), as well as potentially resulting in nuisances to communities (temporary nuisances during construction and visual nuisance while installed), as well as presenting risks to communities in case of unplanned event (e.g. fall of pole during weather event). Throughout the operational phase, the restrictions of activities, buildings and any other objects within the right of way are based on PLN regulation of the safe distance for distribution power. Overall, risks of the Project are deemed limited, not unprecedented, localized and easily manageable. Page | 2 *OFFICIAL USE ONLY The Environmental & Social Management Planning Framework (ESMPF) has been prepared based on a review of the applicable AIIB Environmental and Social Policy, an overall review of the AIIB’s Environmental and Social Policy, Indonesian regulatory requirements and the environmental & social policies and best practices of PLN as applicable to the Project and the description of the proposed activities to be financed by AIIB. The ESMPF includes: • A description of the various Project components • An overview of the applicable AIIB and regulatory environmental and social (E&S) requirements • An overview of the E&S baseline conditions in Bali and East Java • An assessment of potential environmental and social impacts of different project components and sub-components, and • Environmental and social mitigation policy and practice in different ongoing and completed projects. The ESMPF is a Project-level document that provides guidelines for the preparation of studies for PLN to conduct on the various sub projects, which identifies proposed measures to avoid, minimize and manage environmental and social impacts in line with relevant Indonesian environmental and social legislation and the AIIB’s Environmental and Social Policy, including the applicable Environmental and Social Standards, once the sub-project specific sites and routes locations have been identified. The sub-projects comprise the following activities taking place in defined study areas and for which AIIB funds are sought: • Delivery to site and temporary storage at site of material, including transformers, distribution power lines, piles, etc. • Installation/upgrading of the distribution network, including clearing of the right of way; civil works (foundation digging for poles, and in some instances trenching and/or boring); erection of poles; stringing of power lines; installation/replacement of transformers; • Storage, handling and disposal of end-of-life transformers; • Connection to the network and to households (including installation of customer meter boxes and circuit breakers); and • Maintenance (vegetation clearance, etc.) Any incident (unplanned event) that may occur during these activities and lead to environmental, health and safety or social risk or impact on receptors, such as traffic accident, spills or leakages, uncontrolled discharges in the environment, damage to structure or accident on people due to fall of poles, etc. Each sub-project will be located within a limited geographic area in the provinces of Bali and East Java, and the Project will comprise many such sub-projects that may or may not be adjacent, and that will be carried out over a period of 5 (five) years. Associated facilities comprise the PLN and third party owned and managed material and waste storage facilities. Page | 3 *OFFICIAL USE ONLY EXECUTIVE SUMMARY Background. The Asian Infrastructure Investment Bank (AIIB, the Bank) is considering lending to Perusahaan Listrik Negara (“PLN” or “The Company”), Indonesia’s State Electricity Company. Specifically, AIIB is considering financing the construction of about 17,000 km distribution lines and installation of distribution transformers in East Java and Bali. The Project will support the increased access and improved quality of power distribution through infrastructure development in line with the objectives and targets of the first five years of Indonesia’s Electricity Business Plan 2019-2028 (RUPTL) in the East Java and Bali regions. The Project will also support ongoing program of PLN to reduce distribution losses. The Environmental & Social Management Planning Framework (ESMPF) has been prepared by PT PLN (Persero). The ESMPF has been prepared based on an overall review of the AIIB’s Environmental and Social Policy, Indonesian regulatory requirements and the environmental & social policies and best practices of PLN as applicable to the Project. It includes: a. A description of the various Project components; b. An overview of the applicable AIIB and regulatory environmental and social (E&S) requirements; c. An overview of the E&S baseline conditions in Bali and East Java; d. An assessment of potential environmental and social impacts of different project components and sub-components; and e. Environmental and social mitigation policy and practice in different ongoing and completed projects. The ESMPF is a Project-level document that provides guidelines for the preparation of studies for PLN to conduct on the various sub-projects, which identifies proposed measures to avoid, minimize and manage environmental and social impacts in line with relevant Indonesian environmental and social legislation and the AIIB’s Environmental and Social Policy, including the applicable Environmental and Social Standards, once the sub-project specific sites and routes locations have been identified. The Project. Indonesia – East Java & Bali Power Distribution Strengthening Project comprises the expansion of the distribution network, including erection of new poles, cable stringing, trenching and cable burial in urban environment, and installation of distribution transformers. It covers construction of about 17,000 km distribution lines and installation of distribution transformers in East Java and Bali. The scope of works of the power distribution strengthening activities leads all the way to home connection including but not limited to construction/installation of medium-voltage (MV) distribution lines, Low- voltage (LV) distribution lines, distribution transformer, customer connection & meter replacement, Medium Voltage (MV) switch (LBS and Rec), MV cubicle (Distribution) and MV cubicle (Substation). The sub-projects comprise the following activities taking place in defined study areas and for which AIIB funds are sought: a. Delivery to site and temporary storage at site of material, including transformers, distribution power lines, piles, etc. b. Installation/upgrading of the distribution network, including clearing of the right of way; civil works (foundation digging for poles, and in some instances trenching and/or boring); erection of poles; stringing of power lines; installation/ replacement of transformers; c. Storage, handling and disposal of end-of-life transformers; d. Connection to the network and to households (including installation of customer Page | 4 *OFFICIAL USE ONLY meter boxes and circuit breakers); and e. Maintenance of distribution line (vegetation clearance, etc.) Any incident (unplanned event) that may occur during these activities and lead to environmental, health and safety or social risk or impact on receptors, such as traffic accident, spills or leakages, uncontrolled discharges in the environment, damage to structure
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