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World Bank Document FOR OFFICIAL USE ONLY Report No: PAD2539 Public Disclosure Authorized INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF $100 MILLION TO THE REPUBLIC OF INDONESIA Public Disclosure Authorized FOR A IMPROVEMENT OF SOLID WASTE MANAGEMENT TO SUPPORT REGIONAL AND METROPOLITAN CITIES November 7, 2019 Environment & Natural Resources Global Practice East Asia And Pacific Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective October 31, 2019) Currency Unit = USD IDR 14,008 = US$1 FISCAL YEAR January 1 - December 31 Regional Vice President: Victoria Kwakwa Country Director: Rodrigo A. Chaves Senior Global Practice Director: Karin Erika Kemper Practice Manager: Ann Jeanette Glauber Task Team Leader(s): Frank Van Woerden ABBREVIATIONS AND ACRONYMS AMDAL Analisis Mengenai Dampak Lingkungan (environmental impact assessment) APBD Anggaran Pendapatan, dan Belanja Daerah (local government budget) APBN Anggaran Pendapatan dan Belanja Negara (national government budget) BAPPEDA Municipal Development Planning Agency Bappenas Ministry of National Development Planning BLUD Badan Layanan Umum Daerah (public service unit) CDM Clean Development Mechanism CHS Complaint Handling System Coordinating Ministry of Maritime Affairs and Investment – Kemenko CMMAI Maritim dan Investasi COP 21 Paris Climate Change Conference 2015 CPIU Central Project Implementation Unit CPMU Central Project Management Unit DES Directorate Development for Environmental Sanitation (MPWH) DGHS Director General for Human Settlements (MPWH) DLH Dinas Lingkungan Hidup (municipal environmental agency) DWM Directorate of Waste Management (MOEF) ERIC Emission Reduction in Cities Project ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan INDC Indonesia’s Nationally Determined Contribution IPPF Indigenous Peoples Planning Framework ITF Intermediate Treatment Facility GRS Grievance Redress Service Kemenko Ekonomi Coordinating Ministry of Economic Affairs LARPF Land Acquisition and Resettlement Policy Framework LARAP Land Acquisition and Resettlement Plan LGF Landfill Gas Flaring Jakstranas National Waste Management Policy and Strategy MBTF Mechanical Based Treatment MDTF Multi-Donor Trust Fund MEMR Ministry of Energy and Mineral Resources Kemenko Maritim Coordinating Ministry of Maritime Affairs and Investment (CMMAI) dan Investasi MIS Management Information System MOEF Ministry of Environment and Forestry MOF Ministry of Finance MOH Ministry of Health MOHA Ministry of Home Affairs MPWH Ministry of Public Works and Housing MRF Material Recovery Facility NAHP National Affordable Housing Program NSUP National Slum Upgrading Program NUSWP National Urban Water Supply Program NUWP National Urban Wastewater Program PASA Programmatic Advisory Services and Analytics PIU Project Implementing Unit PMU Project Management Unit PPSD Project Procurement Strategy for Development Percepatan Pembangunan Sanitasi Permukiman (Acceleration of Urban PPSP Sanitation Development Program) RDF Refuse-Derived Fuel RIDF Regional Infrastructure Development Fund RP Resettlement Plan RPJMN National Medium-Term Development Plan RT/RW Rukun Tetangga / Rukun Warga (neighborhood associations) SECO Switzerland State Secretariat for Economic Affairs SSK Strategi Sanitasi Kota (City Sanitation Strategy) Sinkronisasi Urusan Pemerintahan Daerah (Synchronization of Regional SUPD Government Affairs) TCAF Transformative Carbon Asset Facility TPA Tempat Pembuangan Akhir (landfill) TPS Tempat Pengolahan Sampah (intermediate collection facility) Tempat Pengolahan Sampah - Reduce, Reuse, Recycle (intermediate TPS-3R recycling facility) Dokumen Upaya Pengelolaan Lingkungan/Upaya Pemantauan Lingkungan UKL/UPL (environmental management and monitoring documents) UPTD Unit Pelayanan Teknis Daerah (regional government technical service unit) Vfm Value-For-Money Global Alliance of Waste Pickers and Women in Informal Employment: Globalizing WEIGO and Organizing The World Bank Improvement of Solid Waste Management to Support Regional and Metropolitan Cities (P157245) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 6 A. Country Context................................................................................................................................ 6 B. Sectoral and Institutional Context .................................................................................................... 8 C. Relevance to Higher Level Objectives ............................................................................................. 11 II. PROJECT DEVELOPMENT OBJECTIVES ............................................................................ 13 A. Project Development Objective ..................................................................................................... 13 B. Project Beneficiaries ....................................................................................................................... 13 C. PDO-Level Results Indicators .......................................................................................................... 13 III. PROJECT DESCRIPTION .................................................................................................. 14 A. Project Components ....................................................................................................................... 14 B. Project Cost and Financing ............................................................................................................. 19 C. Lessons Learned and Reflected in the Project Design .................................................................... 20 IV. IMPLEMENTATION ARRANGEMENTS ............................................................................ 22 A. Institutional and Implementation Arrangements .......................................................................... 22 B. Results Monitoring and Evaluation ................................................................................................. 23 C. Sustainability ................................................................................................................................... 24 D. Role of Partners .............................................................................................................................. 25 V. KEY RISKS ..................................................................................................................... 25 A. Overall Risk Rating and Explanation of Key Risks ........................................................................... 25 VI. APPRAISAL SUMMARY .................................................................................................. 28 A. Economic and Financial (if applicable) Analysis ............................................................................. 28 B. Technical ......................................................................................................................................... 29 C. Financial Management ................................................................................................................... 32 D. Procurement ................................................................................................................................... 32 E. Social (including Safeguards) .......................................................................................................... 33 F. Environment (including Safeguards) ............................................................................................... 38 G. Other Safeguard Policies (if applicable) ......................................................................................... 39 H. World Bank Grievance Redress ...................................................................................................... 39 I. Implementation Readiness .............................................................................................................. 40 VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 41 The World Bank Improvement of Solid Waste Management to Support Regional and Metropolitan Cities (P157245) ANNEX 1: DETAILED PROJECT DESCRIPTION ......................................................................... 50 ANNEX 2: IMPLEMENTATION ARRANGEMENTS .................................................................... 64 ANNEX 3: IMPLEMENTATION SUPPORT PLAN ...................................................................... 77 ANNEX 4: ECONOMIC AND FINANCIAL ANALYSIS ................................................................. 80 Background ......................................................................................................................................... 80 Economic Analysis ............................................................................................................................... 80 Financial Analysis ...............................................................................................................................
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