46094-001: Neighborhood Upgrading And

Home , Kendari, Makassar, Pekalongan, Serang

Environmental Monitoring Report

# Annual Report (January – December 2018) April 2019

Indonesia: Neighborhood Upgrading and Shelter Project – Phase 2

Prepared by the Directorate General of Human Settlements, Ministry of Public Works and Housing for the Republic of Indonesia and the Asian Development Bank. CURRENCY EQUIVALENTS (as of 30 April 2019)

Currency unit – rupiah currency name in lowercase (RP) Rp 1.00 = $ 0.00007 $1.00 = Rp 14,215

ABBREVIATIONS

ADB – Asian Development Bank APBD – Anggaran Pendapatan dan Belanja Daerah (Regional Budget Income and Expenditure) DGHS – Directorate General of Human Settlements

NOTE

(i) The fiscal year (FY) of the Government of Indonesia and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2011 ends on 31 December 2011.

(ii) In this report, "$" refers to United States dollars

This environmental monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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ANNUAL ENVIRONMENTAL MONITORING REPORT 2018

Table of Contents

Table of Contents ...... 1 List of Appendices ...... 2 List of Tables ...... 3 List of Figures ...... 3 ABBREVIATIONS ...... 4 CHAPTER 1. INTRODUCTION ...... 5 CHAPTER 2. KEY PROJECT ACTIVITIES AND PROGRESS ...... 7 2.1. Community Contracts ...... 7 2.2. Complex Civil Work Contracts ...... 9 2.3. New Site Development (NSD) ...... 11 CHAPTER 3. ENVIRONMENTAL MITIGATION AND MONITORING STATUS ...... 15 3.1. Requirements of Environmental Safeguards ...... 15 3.2. Key Roles and Responsibilities ...... 15 3.3. Community Contracts ...... 18 3.4. Complex Civil Work Contracts ...... 20 3.5. New Site Development Contracts ...... 20 CHAPTER 4. PUBLIC CONSULTATION AND DISCUSSION ...... 22 CHAPTER 5. INFORMATION DISCLOSURE ...... 24 CHAPTER 6. GRIEVANCE REDRESS MECHANISM ...... 25 CHAPTER 7. PROJECT STAFFING AND CAPACITY BUILDING ...... 27 CHAPTER 8. KEY ISSUES AND CORRECTIVE ACTIONS ...... 29 CHAPTER 9. CONCLUSIONS AND RECOMMENDATIONS ...... 32 APPENDICES ...... 34

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List of Appendices Appendix 1. List of SPPL of Community Contracts ...... 35 Appendix 2. Evidences of Mitigation Measures in Semarang and Makassar ...... 36 Appendix 3. List of SPPL of Complex Civil Work Contracts ...... 38 Appendix 4. Environmental Screening and Assessment for Batua Community Work Package, Makassar City ...... 39 Appendix 5. Evidences of Public Consultation for Community Contract in Batua Neighborhood, Makassar City ...... 50 Appendix 6. Evidences of Public Consultation for Complex Civil Work in Tambakrejo Neighborhood, Semarang City ...... 54 Appendix 7. Evidences of Training of Trainers Workshop ...... 57 Appendix 8. Evidences of Mid-Term Review Workshop ...... 64 Appendix 9. Evidences of the Year-End Review Workshop ...... 70 Appendix 10. Evidences of the Year-End National Coordinating Meeting ...... 76 Appendix 11. Picture of Ad-Hoc Meeting Between DGHS and NMC at NMC Office, Jakarta (June 2018) ...... 82 Appendix 12. Picture of field checking by PPK of Semarang City in Mangkang Wetan Neighborhood (27 August 2018) ...... 83 Appendix 13. An Example of O&M Mechanism in Bontorannu, Makassar ...... 84 Appendix 14. O&M Mechanism has been formulated in the Major’s Decree on NSD’s Management Board of Palopo ...... 86 Appendix 15. An Example of RMC Safeguard Specialist’s QPR ...... 90 Appendix 16. An Example of Approved Community Contract SPPL of 2017 from Beting Kuala Kapias Neighborhood, Tanjung Balai City ...... 92 Appendix 17. An Example of Approved Complex Civil Works SPPL of 2017 and its related Environmental Permit Act from Bone District ...... 95

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List of Tables Table 1. Community Contracts Awarded in 2018 ...... 8 Table 2. Complex Civil Works Contracts Awarded in 2018 ...... 10 Table 3. Agency and Community Organization Responsibilities ...... 15 Table 4. The Status of UKL-UPL and IEE of New Site Development ...... 21 Table 5. Key Issues and the Corrective Actions ...... 29

List of Figures Figure 1. NUSP-2 Project Location ...... 5 Figure 2. Construction of Drainage Channel in Kelurahan Cipocok Jaya (Serang City)...... 7 Figure 3. Construction of Concrete Road in Kelurahan Sungai Pelunggut (Batam City) ...... 7 Figure 4. Asphalt Road Constructed at Kelurahan Kandang Panjang (Pekalongan City) ...... 9 Figure 5. Drainage Channel Constructed at Kelurahan Kabil (Batam City) ...... 10 Figure 6. Work Completed in Purirano NSD, Kendari City ...... 11 Figure 7. Work Completed in Sampoddo NSD, Palopo City...... 12 Figure 8. Work Progress in Jatiwangi NSD, Bima City ...... 13 Figure 9. Work Progress in Handil Berkat Makmur NSD, Kapuas District ...... 14 Figure 10. Dissemination Posters of NUSP-2 Project...... 24 Figure 11. Grievance Redress Mechanism ...... 25 Figure 12. Information Disclosure for GRM ...... 26

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ABBREVIATIONS

ADB Asian Development Bank AP Affected People CA Community Advisor CAP Community Action Plan CC City Coordinator CIO Community Implementing Organization (or BKM Badan Keswadayaan Masyarakat) CPMU Central Project Management Unit DGHS Directorate General of Housing Settlements DLH Dinas Lingkungan Hidup (Environmental Agency) EA Executing Agency EARF Environmental Review and Assessment Framework EIA Environmental Impact Assessment EMP Environmental Management Plan EMS Environmental Management System FY Fiscal Year GRC Grievance Redress Committee GRM Grievance Redress Mechanism IEE Initial Environmental Examination IPAL Instalasi Pengolahan Air Limbah (Communal Wastewater Treatment Plant) KPP Kelompok Pemanfaat dan Pemelihara (Operation and Maintenance Group) KSM Kelompok Swadaya Masyarakat (Community Self-Help Group) LCO Local Coordinating Office MDG Millennium Development Goals MPWH Ministry of Public Work and Housing Muskel Musyawarah Kelurahan (neighborhood assembly meeting) NMC National Management Consultant NSD New Site Development NUSP-2 Neighborhood Upgrading and Shelter Project Phase 2 O&M Operation and Maintenance PIP Pengembangan Infrastruktur Permukiman (Settlement Infrastructure Development) PIU Project Implementing Unit (Satker or Satuan Kerja) PMU Project Management Unit PPK Pejabat Pembuat Komitmen (Commitment Officer) RAB Rencana Anggaran Belanja (Budget Planning) RMC Regional Management Consultant Satker Satuan Kerja (Project Implementing Unit) SKS Survey Kampung Sendiri or Community Self Survey SPPL Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan (Statement Letter for Environmental Management and Monitoring) TIPP Tim Inti Perencanaan Partisipatif (Core Team for Participatory Planning) UKL-UPL Upaya Pengelolaan Lingkungan – Upaya Pemantauan Lingkungan (Environmental Management Effort - Environmental Monitoring Effort Document)

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CHAPTER 1. INTRODUCTION

1. Project Background. The Neighborhood Upgrading and Shelter Project – Phase 2 (NUSP-2) is aimed to upgrade basic public infrastructure in slum settlements, and contribute to meeting Millennium Development Goal (MDG) targets for achieving significant improvement in the lives of slum dwellers (MDG target 7D) and halving the proportion of urban households without sustainable access to safe drinking water and basic sanitation (MDG target 7C).1 The NUSP-2 also contributes to the implementation of Cities without Slums Program launched by the Indonesian Government.2

2. The NUSP-2 is an ADB-funded project, particularly upgrading and/or developing basic infrastructure and facilities for selected slum areas at 99 neighborhoods (kelurahan). These neighborhoods are distributed in 20 districts (kabupaten) and municipalities (kota) located across Sumatra, Java, Kalimantan, Sulawesi, Nusa Tenggara and Maluku Islands as shown in Figure 1. The executing agency of the NUSP-2 is the Directorate General of Human Settlements (Direktorat Jenderal Cipta Karya) of the Ministry of Public Works and Housing (MPWH).

Kapuas Tanjung Palangkaraya Jabung Barat

Batam

Palembang

Bandar Lampung Kendari

Banjarmasin Makassar Palopo Bone

Bengkulu Ambon

Semarang Tanjung Serang Bima Balai Pekalongan

Sukabumi Pasuruan

Figure 1. NUSP-2 Project Location

1 The 2015 MDG target for the proportion of the urban population living in slums is 6%; in 2011, 12.6% of the urban population lived in slums. The 2015 MDG target for the proportion of households with sustainable access to an improved water source is 75.5%; in 2011, 40.5% of urban households had access to an improved water source, 72.5% had access to basic sanitation. The proportion of households with access to safe water and basic sanitation in slum areas is assumed to be much lower. 2 The Cities without Slums Program is incorporated in the National Long-Term Development Plan, 2005–2025. It aims to reduce slum areas in cities by 2025 by promoting concerted initiatives by the central and local governments, private sector, and civil society.

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3. The NUSP-2 assists the local governments in upgrading and/or developing basic infrastructure and facilities at selected neighborhoods in order to achieve the following: Output 1: Institutional capacities for managing pro-poor urban development strengthened; Output 2: Infrastructure in slum neighborhoods upgraded; and Output 3: New settlements for poor families established.

4. There are seven types of infrastructures and facilities built under the NUSP-2, among others, construction of road, bridge, basic sanitation facilities, and communal wastewater treatment plant; installation of clean water supply and street lighting; and provision of municipal solid waste handling facility and transportation as well as basic fire-fighting equipment.

5. Objective and Scope of the Monitoring Report. This Annual Environmental Monitoring Report is developed by NMC Safeguard Team/Project Management Unit of the NUSP-2 to describe the project activities and environmental safeguards implementation in 2018. This report describes the compliance status of environmental mitigation and monitoring conducted against the EARF requirements. Further, corrective actions identified in the ADB Review Mission in 2018, if any, are elaborated in this report to improve compliance in the upcoming year.

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CHAPTER 2. KEY PROJECT ACTIVITIES AND PROGRESS 6. This chapter summarizes key project activities and progress associated with the NUSP-2 implementation in 2018. These include the community and complex civil work contracts awarded as well as the construction of neighborhood infrastructure and facilities to be constructed as part of the New Site Development (NSD) during the reporting period.

2.1. Community Contracts 7. In 2018 the NUSP-2 awarded 215 community contracts (skala lingkungan) in 99 neighborhoods/kelurahans for neighborhood upgrading civil works to local Community Implementation Organizations (CIO or Badan Keswadayaan Masyarakat/BKM). Construction works that are considered technically modest and can be conducted by the community without using specialized or heavy equipment qualify for the community-typed contracts mentioned earlier. Figure 2 (Construction of Drainage Channel in Kelurahan Cipocok Jaya, Serang City) and Figure 3 (Construction of Concrete Road in Kelurahan Sungai Pelunggut, Batam City) are examples of the construction works awarded under the community contract scheme.

Figure 2. Construction of Drainage Channel in Kelurahan Cipocok Jaya (Serang City)

Figure 3. Construction of Concrete Road in Kelurahan Sungai Pelunggut (Batam City)

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Table 1 provides information on 215 community contracts awarded in 2018 as part of the NUSP-2 implementation at 20 cities or districts throughout Indonesia.

Table 1. Community Contracts Awarded in 2018 Number of No City/District (Province) Neighborhoods Construction and/or Installation Conducted Involved 1 Tanjung Balai City 5 Drainage channel, purchase of garbage collector (North Sumatra Province) vehicle, concrete road, green open space, public toilet, retaining wall and street lighting. 2 Tanjung Jabung Barat 4 Drainage channel, concrete road and installation of District (Jambi Province) box culvert. 3 Palembang City 10 Concrete road, drainage channel, concrete bridge, (South Sumatra Province) street lighting, installation of clean water pipeline and purchase of garbage collector vehicle. 4 Bengkulu City 6 Drainage channel, concrete road, street lighting, (Bengkulu Province) purchase of garbage collector and retaining wall. 5 Bandar Lampung City 10 Paved and concrete road, drainage channel, (Lampung Province) floodgate, culvert, solid waste collection area, purchase of garbage collector vehicle, street lighting, installation of plat deucker, green open space, public toilet, retaining wall and installation of clean water pipeline. 6 Batam City 5 Drainage channel and concrete road. (Riau Islands Province) 7 Sukabumi City 4 Communal septic tank and waste water treatment, (West Java Province) paved road, drainage channel, public toilet, street lighting, green open space, installation of plat deucker, culvert, purchase of garbage collector and installation of clean water pipeline. 8 Semarang City (Central 11 Paved road, drainage channel, solid waste collection Java Province) area, street lighting, purchase of garbage collector, concrete bridge, communal septic tank and public toilet. 9 Pekalongan City 6 Purchase of garbage collector, culvert, paved road, (Central Java Province) drainage channel, retaining wall, installation of clean water pipeline, street lighting and green open space. 10 Pasuruan City 5 Paved road, communal septic tank, drainage channel (East Java Province) and purchase of garbage collector vehicle. 11 Serang City 4 Concrete and paved road, drainage channel, solid (Banten Province) waste collection area, public toilet, bore well, retaining wall, communal waste water treatment plant and culvert. 12 Kapuas District (Central 3 Concrete road, wooden trails road, drainage channel, Kalimantan Province) green open space and public toilet. 13 Palangkaraya City (Central 4 Wooden trails road, concrete road, drainage channel, Kalimantan Province) purchase of garbage collector and communal septic tank. 14 Banjarmasin City (South 2 Drainage channel, concrete road, public toilet, Kalimantan Province) communal septic tank and solid waste collection area. 15 Bima City (West Nusa 3 Concrete and paved road, drainage channel, Tenggara Province) installation of plat deucker, street lighting, solid waste collection area, purchase of garbage collector and

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Number of No City/District (Province) Neighborhoods Construction and/or Installation Conducted Involved green open space.

16 Bone City (South Sulawesi 2 Concrete, paved and wooden trails road and drainage Province) channel. 17 Makassar City (South 5 Drainage channel, paved and concrete road, concrete Sulawesi Province) bridge, communal waste water treatment plant, green open space and purchase of garbage collector. 18 Palopo City 3 Drainage channel, street lighting, green open space (South Sulawesi Province) and concrete road. 19 Kendari City 4 Solid waste collection area, concrete and paved road, (South East Sulawesi) drainage channel, concrete bridge, purchase of garbage collector, green open space and street lighting. 20 Ambon City 3 Concrete road, drainage channel, installation of plat (Maluku Province) deucker, retaining wall, purchase of garbage collector and solid waste collection area. Source: NUSP-2 Infrastructure (2018).

2.2. Complex Civil Work Contracts 8. The complex civil work contracts are awarded to companies (instead of community groups) through bidding process, particularly for construction works involving multiple neighborhoods and specific materials and heavy and/or specialized equipment that may need to be mobilized from other areas. In 2018 NUSP-2 awarded complex civil work contracts for constructing facilities and infrastructure in 8 (eight) cites or districts in Indonesia. On the next page the Figure 4 shows the Asphalt Road Construction at Kelurahan Kandang Panjang (Pekalongan City) and Figure 5 shows the Drainage Channel Constructed at Kelurahan Kabil (Batam City) that have been constructed under the complex civil work contract.

Figure 4. Asphalt Road Constructed at Kelurahan Kandang Panjang (Pekalongan City)

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Figure 5. Drainage Channel Constructed at Kelurahan Kabil (Batam City)

9. The types of community facilities and infrastructure in 2018 under the complex civil works contracts (skala kawasan) have been constructed or installed through 9 packages distributed in 8 cities/districts and presented in the following table.

Table 2. Complex Civil Works Contracts Awarded in 2018

No City/District (Province) Construction and/or Installation Conducted

1 Kelurahan Kabil, Batam City (Riau Islands Paved and concrete road and drainage channel. Province). 2 Kelurahan Sawah Lebar, Bengkulu City Drainage channel and asphalt road. (Bengkulu Province) 3 Kelurahan Kandang Panjang, Pekalongan City Asphalt road, green open space, drainage channel (Central Java Province) and installation of box culvert. 4 Kelurahan Tambakrejo, Semarang City Drainage channel, solid waste collection area and (Central Java Province) road. 5 Kelurahan Selat Dalam, Kapuas District Retaining wall, green open space, concrete bridge, (Central Kalimantan Province) construction of archway and street lighting 6 Kelurahan Batua, Makassar City (South Paved road and drainage channel. Sulawesi Province) 7 Kelurahan Borong, Makassar City (South Paved road and drainage channel. Sulawesi Province) 8 Kelurahan Batu Merah, Ambon City (Maluku Installation of clean water pipelines, drainage channel Province) and concrete road. 9 Kelurahan Dara and Jatibaru, Bima City (West Asphalt road and drainage channel. Nusa Tenggara Province) Source: NUSP-2 Infrastructure (2018).

10. The implementation of 1 (one) complex civil work package in Kelurahan Tambakrejo Semarang City was delayed due to : (i) the replacement of the government official (Satker and Commitment Officer or Pejabat Pembuat Komitmen/PPK), and (ii) the design stressing on collaboration approach with the board for river management (Balai Besar Wilayah Sungai/BBWS). The BBWS is responsible for the river normalization and construction of retaining wall using concrete sheet pile; whereas the NUSP-2 project is responsible for the construction of roads along the retaining wall. The road construction process will be started

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once the retaining wall is completed. These processes caused insufficient time of implementation during 2018. Thus, this work package in Semarang City is managed through multi-year contract which will be completed in April 2019.

2.3. New Site Development (NSD) 11. For the NSD progress, the Initial Environmental Examination (IEE) of Purirano NSD in Kendari City and Sampoddo NSD in Palopo City have been endorsed by ADB on 12 March 2018 (for Purirano NSD) and 26 April 2018 (for Sampoddo NSD). The Purirano NSD infrastructure construction contract has been started in May 2018, and Sampoddo NSD in July 2018, and are now completed. The pictures of construction work process can be seen in Figure 6 (Work Completed in Purirano NSD, Kendari City) and Figure 7 (Work Completed in Sampoddo NSD, Palopo City).

Figure 6. Work Completed in Purirano NSD, Kendari City

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Figure 7. Work Completed in Sampoddo NSD, Palopo City

12. The IEE of Jatiwangi NSD in Bima City and the NSD Handil Berkat Makmur in Kapuas District have been reviewed and approved by ADB on 11 September 2018 (for Jatiwangi NSD) and 13 November 2018 (for Handil Berkat Makmur NSD). The Jatiwangi NSD infrastructure construction contract has been started in October 2018, and Handil Berkat Makmur NSD in November 2018 and both are now progressing. The pictures of construction work process can be seen in Figure 8 (Work Progress in Jatiwangi NSD, Bima City) and Figure 9 (Work Progress in Handil Berkat Makmur NSD, Kapuas District).

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Figure 8. Work Progress in Jatiwangi NSD, Bima City

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Figure 9. Work Progress in Handil Berkat Makmur NSD, Kapuas District

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CHAPTER 3. ENVIRONMENTAL MITIGATION AND MONITORING STATUS 3.1. Requirements of Environmental Safeguards

13. According to the ADB’s Safeguard Policy Statement (2009), the NUSP-2 is classified as the Category B Project, i.e. the project could have some adverse environmental impacts, but of lesser degree or significance than those in category A, but the impacts are site specific and can be readily addressed through common mitigation measures. The NUSP-2 creates positive impacts on the environment and improves the wellbeing of the community through alleviation of slum areas in emerging cities in Indonesia.

14. The Environmental Assessment and Review Framework (EARF) document has been prepared in 2014, and it provides screening procedure and checklist to review environmental implications of the infrastructure and facility to be constructed as part of the NUSP-2. The EARF requires that: • An initial environmental examination (IEE) document according to the ADB requirement is prepared and endorsed by DGHS and ADB as part of the new site development (NSD) proposal; and • Environmental Mitigation and Monitoring Plan (UKL-UPL) or Statement Letter to Conduct Environmental Mitigation and Monitoring (SPPL) is prepared and endorsed by DGHS according to the Ministry of Environment Regulations No. 5/2012 on Types of Activities and/or Projects Requiring Environmental Impact Assessment (AMDAL) and No. 16/2012 on the Guidance for the Preparation of Environmental Documents; and Ministry of Public Work Regulation No. 10/PRT/M/2008 on Types of Activities and/or Projects in the Public Work Sector Subject to be Completed with the Environmental Management Effort- Environmental Monitoring Effort (UKL-UPL) document.

3.2. Key Roles and Responsibilities

15. Table 3 summarizes the key roles and responsibilities of the executing and implementing agencies as well as community organizations involved in the implementation of the NUSP-2 including their respective environmental responsibilities. Related evidences as some examples on the undertaking of these roles and activities, particularly at the city/district level, Community Implementing Organization (CIO), and neighborhood level are provided in the appendices. Table 3. Agency and Community Organization Responsibilities Institutions and Activities and Status Compliance Responsibilities Directorate General of Housing Settlement (Executing Agency) • Overall coordination, The coordination, supervision and monitoring by the Complied supervision, PMU/EA were mostly done through workshops, monitoring. coordinating and review meetings, in which safeguard

issues were discussed, including collecting evidences. These events were also a means of capacity building for the RMC Technical Assistants, CC, and CAs. Some supervision meetings were conducted on ad hoc basis and on the sites.

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Institutions and Activities and Status Compliance Responsibilities

• Preparation and In 2018 the PMU submitted 4 quarterly progress and Complied submission of evaluation reports to ADB (QPR 1 January – March; QPR quarterly progress and 2 April – June; QPR 3 July - September; QPR 4 October – evaluation reports. December). • Prepare guidelines for The DGHS had published a Technical Guideline on Social Complied the environmental due and Environmental Management in September 2016. Up diligence and till 2018, the City Satker, CCs and CAs has been using monitoring of this guideline for reference to implement and monitor the environmental environmental and social safeguard components through management plan. screening using forms of checklists and templates provided. Public Works (Local Coordinating Officer) at City or District Level • Provide overall In all 20 cities, the LCO at the Local Planning Agency Complied coordination, oversees the overall implementation of NUSP-2 supervision, intervention, including approval of the neighborhood monitoring and proposals. The supervision and monitoring by the LCO approval of and City Satker conducted through the finalization process neighborhood of the Community Action Plan (CAP). proposals including environmental checklists. • Prepare quarterly The LCO provided inputs to the PMU on the quarterly Complied progress reports progress reports of the NUSP-2 intervention. Some including reports included monitoring on infrastructure progress on environmental. 50% and on 100%, which were also uploaded in Management Information System (MIS). • Provide technical The technical support provided by LCO through Complied support to community consultation and coordination when the Badan advisors and Keswadayaan Masyarakat (BKM or Commuity BKMs/CIOs. Implementing Organization/CIO) presents their CAP. Along the process of construction, the Local Public Work Agency was reviewing, controlling and improving the works as part of technical support, coaching and empowerment. • Carry out • For the community contract, the environmental due • Complied environmental due diligence was carried out using the environmental diligence. screening checklist. Subsequently, this information is utilized to develop the SPPL for submission to the Local Environmental Agency. • For the complex civil work contract, the SPPL is • Complied prepared by City Satker and contractor assisted by the CCs. • For the NSD, IEE and UKL-UPL are prepared for • Complied ADB/DGHS endorsement and local government respectively. The list of SPPL and IEE prepared in 2018 is included in Appendix 1, 2, and 4. There are 215 community contracts, 9 complex civil works and 4 NSDs.

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Institutions and Activities and Status Compliance Responsibilities

• Monitor the The LCO has been monitoring the implementation of Complied implementation of the environmental management plan in ad-hoc basis. environmental management plan. Environmental Agency at City or District Level (Dinas Lingkungan Hidup/DLH) • Provide guidance on The Environmental Agencies used the checklists provided Complied environmental in the Technical Guidelines mentioned above as the checklists. reference for issuing the approval for SPPL document for each CAP. • Coordinate with The Environmental Agencies conducted site visits to Complied community advisors to validate the environmental screening results on 0% point conduct site visits to of infrastructure during the community meeting, and validate the validate monitoring results on 50% and 100% of screening/assessment infrastructure progress to verify the requirement of budget results. disbursement. • Review the There is no deep well constructed as part of the NUSP-2 Not applicable engineering design in 2018. and environmental checklists and provide permit for construction of a deep well. • Conduct random Random checking was done by the Environmental Complied checking during Agencies during construction and after completion to also construction and after make sure of infrastructure quality and gave technical completion to inspect inputs for improvement where needed. environmental procedures and impacts. Health Agency at City or District Level • Test collected water This water testing was not conducted, as most of the Not applicable quality samples to clean water source for the NSD sites will be supplied from determine if collected treated water from the municipal water company (known water sources meet as Perusahaan Daerah Air Minum or PDAM). the drinking water standards. Community Implementation Organization (CIO) • Responsible for The CIO established the project implementing units in the Complied establishing project form of community self-help group (Kelompok Swadaya implementation units. Masyarakat or KSM) to implement the NUSP-2 activities.

• Responsible for The CIO, assisted by the CA and CC, conducted Complied conducting environmental screening by visual inspection and review environmental of the CAP using the checklist forms included in the checklists assisted by Technical Guideline for Social and Environmental community Management (2016). advisors/safeguard specialist. • Formulate O & M The O&M mechanism was formulated during finalization Complied mechanisms. of the CAP. At the same time the CIO established the

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Institutions and Activities and Status Compliance Responsibilities O&M group (Kelompok Pemanfaat dan Pemelihara/KPP) to be responsible for maintenance of the neighborhood facility and infrastructure constructed. Later on, the KPP groups were empowered through O&M training between July-August 2018 for each city. • Responsible for CIOs together with respective PPK monitored and Complied monitoring evaluated the activities when construction achieved 50% construction activities and 100% progress, and made necessary intervention or and conducting improvement based on the results. The monitoring results inspection for then were uploaded into the NUSP-2 website/SIM. completed interventions. • Disclose, on the The discussion to develop and finalize the neighborhood Partially neighborhood board, proposals was conducted through series of neighborhood complied neighborhood discussion (musyawarah kelurahan/Muskel II - III). proposals and However, the proposals, contracts, and checklists were contracts including not disclosed on the neighborhood board. environmental checklists. • Responsible for taking This responsibility was conducted through those series of Complied any negative feedback neighborhood discussions (Muskel IV - V), women group related to site, meetings (Rembug Khusus Perempuan), and other ad- construction, and hoc meetings to take-up feedbacks and complains from operation from other other neighborhood members. neighborhood members and organizing meetings to solve problems. • Responsible for The environmental monitoring is reported using the Form Complied reporting SG-5 completed with the minutes of meeting of the environmental monitoring at 50% and 100% of construction progress. monitoring to LCOs The minutes and pictures of this activity were uploaded into the NUSP-2 website/MIS and included in the Technical and Financial Report (Laporan Pertanggung- Jawaban/LPJ) after completion of infrastructure.

3.3. Community Contracts 16. Environmental Mitigation. For every community contract package, prior to construction the CIO prepared a Community Action Plan (CAP) including the environmental and social screening using the forms/checklists provided in the NUSP-2 Technical Guidelines on Social and Environmental Management. Based on this Technical Guidelines, there are 5 types of forms/checklists that should be applied along the project for each type of infrastructure. The first form (SG-1 form) is for the negative list screening. The second (SG-2) is for identifying both social and environmental impacts, and the third (SG-3) is for analyzing those potential impacts and related mitigation actions to cope with the impacts. The SG-4 is to provide a recapitulation of those screening results, while the SG-5 is for monitoring the

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process at the point of 0%, 50% and 100% of construction work progress. Examples of the use of these forms of SG-1 till SG-5 are shown in Appendix 4.

17. Assisted by the Community Adviser (CA), the CIO conducted neighborhood meeting (Musyawarah Kelurahan or Muskel III) to disseminate the screening result and discuss the CAP. The results of the environmental and social screening were incorporated into the SPPL that was subsequently submitted to the local environmental agency (Dinas Lingkungan Hidup/DLH) for registration. The SPPL contains identified potential environmental impacts and measures to mitigate these impacts during the construction work. The total of SPPL formulated for slum upgrading through community contract in 2018 was 215 packages. The list of SPPL submitted for the community contract activities is presented in Appendix 1.

18. As of end of December 2018, almost all of community contracts in the first, second and third cycle had completed their SPPL documents, except those from the Semarang City which are still in the registration process at the Investment and One Stop Services Office (Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu) due to many bureaucracy requirements.

19. Some mitigation measures mentioned in the SPPL to cope with environmental impacts usually were: water spraying for dust suppression; covering the construction materials using tarpaulin; stockpiling the construction materials properly on the road side; putting the warning signboard around the construction works; and providing the workers with personnel protective equipment. The documentation pictures of these mitigation measures are provided in the Appendix 2.

20. Environmental Monitoring. The CA/CIO visually monitored the implementation of the mitigation measures to make sure that they complied with the SPPL during the project up to hand over to the Local Coordinating Office (LCO) and subsequently to the local community as the beneficiary of the NUSP-2. They monitored the progress of infrastructure being built by visual inspection and made some documentation pictures of the progress on 0%; 50% and 100%, and filled up the form of SG-5. These processes were being uploaded into the website of Management Information System through application by the CA. The City Coordinator would check the uploaded files and gave approval. Subsequently, the Safeguard Specialists at the Regional Management Consultant (RMC of west, central and east regions) collected and reviewed the status of the process, made some analysis and recapitulation to be reported to the Safeguard Team of NMC. The NMC incorporated this report into the quarterly and annually reports and submitted to ADB.

21. In general, the monitoring results on community contract packages in 2018 showed that most of the mitigation measures were properly applied by the KSM as committed in the SPPL documents. Since the scale of subproject was manageable by the communities themselves, the impacts were not too hard to cope with. For this is the third years of the project implementation, the KSM have becoming more experienced in applying the environmental safeguard. However, the key issue here was that communities were still not used to properly make good quality records or documentation on what they have done.

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3.4. Complex Civil Work Contracts 22. Environmental Mitigation. Based on the initial screening using the form of SG-1-3, all of the complex civil work contracts in 2018 required the SPPL document, not the UKL-UPL. The environmental mitigation implemented for the complex civil work contracts is similar to that of the community contract in that SPPL, which is required for construction activities of the neighborhood infrastructure and facilities. The list of SPPL submitted for the community contract activities is presented in Appendix 3. There were 8 cities/district involved in complex civil work contracts, but only 1 (Tambakrejo) of Semarang City have not completed the SPPL documents yet due to bureaucracy obstacles.

23. Similar to the community contract package, some mitigation measures mentioned in the SPPL document of complex civil works to cope with environmental impacts were: water spraying for dust suppression; covering the construction materials using tarpaulin; stockpiling the construction materials properly on the road side; putting the warning signboards around the construction works; and providing the workers with personnel protective equipment. The documentation pictures of these mitigation measures are provided in the Appendix 2.

24. Environmental Monitoring. For the complex civil work contracts, the City Coordinators (CCs) in coordination with LCO were responsible for the day-to-day environmental monitoring during the construction activities done by the contractor firms. They monitored the progress of infrastructure being built by visual inspection, and made some documentation pictures of the progress (0%; 50% and 100%). The SG-5 form, provided in the Technical Guideline, was used to do the monitoring for both social and environmental safeguard for each activity. The day-to-day monitoring during the construction activities were recorded in the logbook.

25. Even though the monitoring result of the complex civil works was generally good, the key challenge here was the coordination responsibility between the City Satker and the LCO in monitoring the contractor firm as the developer of infrastructure. The CCs played an important role in assuring the mitigation measures were taken in place during the construction process.

3.5. New Site Development Contracts 26. In 2018, the construction of infrastructure and facilities at the four NSD sites in Kendari, Palopo, and Bima cities and Kapuas District have been commenced and the environmental mitigation and monitoring have been occurring. The types of infrastructure are neighborhood road, drainage system, clean water supply, solid waste management system, landscape, and street lighting. The report of implementation and monitoring of environmental mitigation will be reported on separate monitoring report of each IEE. The status of IEE document for the NSD is provided in Table 4 below.

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Table 4. The Status of UKL-UPL and IEE of New Site Development

No NSD Sites UKL-UPL IEE

1 Purirano NSD – • UKL-UPL approval No. 191 year 2016 (dated Approved by ADB on 12 Kendari City 29 December 2016), issued by the March 2018 (Southeast Sulawesi Environmental Agency of Kendari City. Province) • Environmental Permit No. 192 year 2016 (dated 29 December 2016) issued by the same environmental agency. 2 Sampoddo NSD – • UKL-UPL approval No. 660/047/DLH/XII/2017 Approved by ADB on 26 Palopo City (South (dated 16 December 2017) issued by the April 2018 Sulawesi Province) Environmental Agency of Palopo City • Environmental Permit No. 660/48/DLH/XII/2017 (dated 16 December 2017) issued by the same environmental agency. 3 Jatiwangi NSD, Bima • UKL-UPL recommendation No Approved by ADB on 11 City (West Nusa 880/32/DLH/XII/2017 (dated 21 December September 2018 Tenggara Province) 2017) issued by the Environmental Agency of Bima City. • Environmental Permit No. 435/2018 (dated 15 May 2018) issued by the Major (Walikota) of Bima City. 4 Handil Berkat • UKL-UPL approval No. 660/364/DLH/X/2017 Approved by ADB on 13 Makmur NSD, (dated 18 October 2017) issued by the November 2018 Kapuas District Environmental Agency of Kapuas District (Central Kalimantan • Environmental Permit No. 627/DPMPTSP/ year Province) 2017 (dated 29 December 2017) issued by the Head (Bupati) of Kapuas District. Source: NSD Technical proposals and copies of UKL-UPL documents from NUSP-2 subprojects 2017.

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CHAPTER 4. PUBLIC CONSULTATION AND DISCUSSION 27. The NUSP-2 project conducted public consultation as an integral part of the identification, selection and implementation of neighborhood infrastructure interventions. For the community contract packages, several stages of neighborhood meetings were conducted to openly discuss the whole process of development from assessing environmental and social safeguard checklist, formulating and consolidating the investment plan Into Community Action Plan (CAP), preparing the construction implementation and selecting the Implementing Unit (Kelompok Swadaya Masyarakat/KSM). Through these meetings, all community members and concerned stakeholders would have such forum to raise their complaints to be resolved. So far, there is no report of any concerns or complaints addressed to the Implementing Units.

28. In 2018, similar to previous years, public consultations and discussions were done through series of neighborhood meetings (Musyawarah Kelurahan or Muskel) aforementioned in previous Chapter. As an example of this public consultation and discussion, the CAP drafting process for a community contract package in Batua neighborhood of Makassar City is presented in Appendix 5.

29. For the complex civil works, at the pre-construction phase, the City Coordinator (CC) and City Satker conducted public consultation with the representatives of local communities, heads of Kelurahan and the contractor firms to discuss the plan for the infrastructure and identifying potential impacts by screening and reviewing the checklist forms and later developed the UKL-UPL or SPPL documents based on the screening results. These events were documented in the minutes of meetings, list of participants, and some pictures, and uploaded into the NUSP-2 website/MIS by the CCs for public viewers. An example of such public consultation for complex civil works package in Tambakrejo neighborhood of Semarang City is presented in Appendix 6. The discussion was about drafting report of initial screening results using SG-1 till SG-3 forms to be included into the SPPL. The community members and concerned stakeholders could have used this forum to raise their complaints to be resolved. So far, there is no report of any concerns or complaints addressed to the related City Satker.

30. As for the NSD sites, at the pre-construction phase, there would be two types of public consultation. The first one is for disseminating information about the NSD project to the local communities, potential beneficiaries, and job or business opportunities for the locals, as well as seeking for local community’s perception on the NSD project. The second one is for discussing and reviewing environmental and social screening checklists to prepare the UKL- UPL document, which later to be further developed as IEE and social DDR documents. This event would be attended by potential affected communities, the heads of Kelurahan, related agencies or stakeholders, the contractor firms, the CC and the sub-specialists (for monitoring evaluation for NSD implementation) and facilitated by the City Satker.

31. Since the construction works at the four NSD sites have been started, the first public consultation and dissemination events have also been conducted. In Purirano NSD (Kendari), it was held at the site (temporary) office on May 11, 2018, attended by 30 participants, including local community members, the City Satker, the contractor, and the sub-specialist. Similarly, the public consultation for Sampoddo NSD (Palopo) was held on June 11, 2018 at

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the site office, attended by the City Satker, the contractor, the technical consultants and the potential beneficiaries. Whereas in Jatiwangi NSD (Bima), it was held on November 2018, attended by 14 people of local community members, the City Satker, the contractor and the sub-specialist. And the public consultation for the Handil Berkat Makmur (Kapuas) was held on December 12, 2018 in Kelurahan Office of Selat Utara, attended by about 30 participants from almost the same kind of stakeholders. The results of these events were that the local communities understood about the NSD planning, and that there were some job or business potentials in the new site development, and there were some local communities and suppliers involved in the construction process either as work force or provider of goods and services.

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CHAPTER 5. INFORMATION DISCLOSURE 32. Information on public consultation, discussion, and neighborhood meetings related to the implementation of community and complex civil work contracts are documented and uploaded into the NUSP-2’s website/MIS (www.nusp2.id). However, information related to monitoring of environmental mitigation measures is lacking.

33. For the NSD, the IEE documents (including the EMP) and the annual environmental monitoring report are disclosed on ADB’s website and NUSP-2’s websites. The IEE documents for Purirano and Sampoddo NSDs have been translated into Bahasa Indonesia and the translation has been shared with the respective LCOs and City Satkers to be made available to public, including the affected people and interested stakeholders. The IEE documents for Jatiwangi NSD (Bima) and Handil Makmur Jaya (Kapuas) are still in translation process into Bahasa Indonesia.

34. The project also published about six posters explaining the NUSP-2 project and one special poster on NSD. These posters dissemination is another strategy to reach out the potential beneficiaries. These posters have been distributing gradually in 2016 till 2018 and mentioning the email address and mobile contact number to redress grievance or complains from communities. Two of these posters are shown below in Figure 10.

Figure 10. Dissemination Posters of NUSP-2 Project

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CHAPTER 6. GRIEVANCE REDRESS MECHANISM 35. The NUSP-2 has established a grievance redress mechanism (GRM), which basically consists of three levels, i.e. at the neighborhood, at the city/district, and at the national levels as shown in Figure 11 (Grievance Redress Mechanism). This leveling system is expected to timely address any complaints during project implementation. Local communities or affected people will have the right to file complaints and/or queries related to disturbance / environmental impacts due to the project activities.

36. The GRM should handle any complaints and/or queries which emerge during construction process of the subprojects. Any affected people/party will have the right to file complaints. It is anticipated that all grievances related to benefits and other assistance will be resolved at the project level.

37. The procedure for filing complaints and/or grievance during construction is established as follows: (i) The complaint will be filed to the Community Implementing Organization (CIO) or Badan Keswadayaan Masyarakat (BKM) members and local government at the neighborhood level for an immediate solution when possible;

Figure 11. Grievance Redress Mechanism

(ii) If the problem cannot be solved, the BKM members and local government staff will facilitate the APs (affected peoples) to submit their complaints to the Projects’ grievance

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redress committee (GRC) at the district level, and to the national level if needed. Community advisor then will record the complaint and report it to the LCOs. The project will dedicate a staff at city/district and national levels to be in-charge of handling and following up on AP’s complaints.

(iii) The members of the GRC should involve the representatives of vulnerable affected people (i.e. affected women, poor and minority groups) and other affected people along with relevant government officials who have functional and legal authority. The committee will then review grievances involving all land acquisition benefits or issues, except for disputes related to ownership.

(iv) Grievances will be addressed within 2 to 4 weeks from the date of filing the complaints at the district level and within 8 weeks at the national levels.

38. To disseminate information of the GRM, in 2016 the project had published a guideline on grievance redress handling mechanism and distributed to all LCO and City Satker. In addition, the project had also published a poster especially on GRM or PPM (Penanganan Pengaduan Masyarakat), as shown in Figure 12 below. So far, there was no complaint or grievance raised by the the community about the NUSP-2 project in 2018.

Figure 12. Information Disclosure for GRM

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CHAPTER 7. PROJECT STAFFING AND CAPACITY BUILDING 39. The consulting services are provided at the national, regional, city and kelurahan level. At the national level, a team of consultants assist the CPMU, namely the National Management Consultant (NMC) based in Jakarta. Part of this NMC, a safeguard specialist and the two safeguard assistants were recruited to assist the PMU in preparing social and environmental management guidelines, checking supporting data and documents from the field in the project’s Management Information System (MIS) website, incorporating environmental monitoring in the quarterly progress reports and environmental survey results in the monitoring and evaluation framework, prepare reports on annual environmental monitoring and prepare the IEE for the NSD proposals.

40. At the regional level, a safeguard specialist was also recruited at each of three regional management consultant (RMC) teams, based in Palembang (for West Region), Semarang (Central) and Makassar (East). These RMC safeguard specialists were responsible for assisting the NMC safeguard team in reviewing environmental monitoring management by BKMs/CIOs, reviewing the completion of safeguard documents, preparing the environmental monitoring reports, dissemination of the guidelines, assisting and training the city/district coordinators and community advisors to review the environmental screening carried out by BKMs/CIOs.

41. In addition to each NSD subproject, there are four sub-specialists responsible to assist in day-to-day monitoring and evaluation for the implementation of the NSD. This also includes assisting the City Satker, the LCO and the related RMC Safeguard Specialists in collecting data for monitoring the implementation of mitigation measures set forth in the EMP of the IEE. They are based in the NSD sites of Kendari, Palopo, Bima, and Kapuas.

42. And there are city/district coordinators (CCs) based in 20 cities/districts of the NUSP-2 project, responsible in assisting the city/district Satker (Project Implementing Unit/PIU), the LCOs, and the community advisors. The CCs also responsible for conducting review and screening of the environmental and social safeguard checklist using forms of SG-1 till SG-5 provided in the Technical Guidelines of NUSP-2, both for community contracts and complex civil work packages. Further, they review the completion of necessary safeguard documents, and review the quality of documentations uploaded by CCs or CIOs/BKMs in the NUSP-2 website/MIS.

43. Under the city/district coordinators (CCs), at the kelurahan level there are Community Advisors (CAs) who may cover up to 2-3 kelurahans, and responsible for assisting each BKM/CIO for day-to-day management of the community contract works; facilitating the establishment of CIO/BKM and user groups; facilitating the preparation of CAPs; providing the community with technical guidance in book-keeping, documentation and report preparation; and assisting the user groups in formulating and implementing facility operation and maintenance. Together with the CCs, the CAs assist the CIO/BKM in reviewing and screening the environmental and social safeguard checklists. The CAs and CCs also responsible for the preparation of documentation of each activity and supporting documents as the evidence,

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such as minutes of meetings, notes, list of participants, pictures, other related documents. The Technical Guidelines of NUSP-2 also provided various document templates for documentation purposes. The CAs and CCs were responsible to assist the CIO/BKM to upload all of these documents and pictures into MIS website of the NUSP-2 project for further monitoring by the RMC and NMC safeguard specialists for reporting and public disclosure.

44. To improve monitoring quality, in 2018 several capacity buildings were done through events such as regional coordination meeting, training for trainers, and coaching. Brief information on each event is described below, whereas the reports proceedings of these events were documented and compiled at the PMU and NMC offices.

45. In early July 2018 the Safeguard Team joined the NMC’s Capacity Building Team in conducting the Training of Trainers Workshop in Ambhara Hotel, Jakarta, for the CCs and CAs. The specific module on safeguards was developed especially for the CIO/BKM to refresh their knowledge and skills on safeguard aspects of the project, as well as to improve the quality of supporting data for safeguard monitoring reports. Simultaneously, the NMC’s Safeguard Team also held special sessions with the NSD’s sub-specialists to brief them with the Environmental Management Plan (EMP) for each NSD, so that they can help with the implementation, monitoring and reporting of the EMP on each NSD site. List of attendance, invitation letter and pictures of these events can be seen in Appendix 7.

46. In mid-September 2018, the NMC and RMC Safeguard Team joined the NMC-RMC mid-term review workshop in Semarang to discuss the progress of the projects with all CCs and CAs. At this event, the safeguard team presented important points as a reminder of safeguard aspects to be implemented, monitored, reviewed and reported. The safeguard team also took advantage of this gathering to collect all supporting documents needed for safeguard reports in 2018. List of attendance, invitation letter and pictures of this workshop can be seen in Appendix 8.

47. On November 27-30, 2018, the Safeguard Team joined the NMC-RMC year-end review workshop in Jakarta to evaluate the results of the project with all CCs and CAs, and to collect all supporting documents needed for safeguard reports in 2018. Later, the Safeguard Team also joined the year-end National Coordinating Meeting in Yogyakarta on December 18- 21, 2018 to finalize the annual technical and financial reports from each sub-project conducted at the neighborhood level. List of attendance, invitation letter and pictures can be seen in Appendix 9 and 10.

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CHAPTER 8. KEY ISSUES AND CORRECTIVE ACTIONS 48. As the NUSP-2 is a community based driven project, the challenge in implementing safeguard aspects was that not all community members, particularly the construction workers, had proper knowledge in implementing the mitigation measures. To address this issue, the NMC and RMC (particularly CCs and CAs) carried out close monitoring and assistance to the community in 2018. As the result, most of these measures had been done, and the CIOs were able to formulate safeguard monitoring reports for each neighborhood, although some of these reports lacking quality and necessary supporting documents. The CIO’s reports have been submitted to the RMC and NMC and used as the reference in formulating this 2018 AEMR.

49. The corrective actions on the gaps of EMP implementation identified in the 2017 AEMR have been followed up in 2018, and reported in Table 5.

Table 5. Key Issues and the Corrective Actions Status/Progress No Key Issues / Gaps Corrective Actions PIC & Schedule up to Dec 2018 1 Lacking documentation Evaluate the PIC: DGHS/NPMU Completed - The EA (e.g. minutes of meeting) environmental (DGHS) conducted several on the monitoring and safeguards ad-hoc and monthly evaluation of implementation on a Schedule: Evaluation meetings to monitor and environmental safeguards regular basis and to be conducted evaluate the safeguards implementation at the document the results of periodically implementation. Moreover, Executing Agency. this implementation. (monthly). reviews on safeguard implementations were also done through workshops and coordination meetings (evidences of these events are included in Appendix 7, 8, 9, 10, and 11).

2 The LCOs (Local Public PMU (assisted by NMC) PIC: LCO at Completed – The PMU Work office) have not should conduct an respective local empowered the LCOs during monitored the empowering or capacity Public Work offices. Mid-Term Review Workshop implementation of building event for the in Semarang in September Environmental LCOs to remind them 2018 (see Appendix 8). The Management Plan (EMP) about this responsibility Schedule: During PMU also required the LCOs associated with the site visits, regional to carry out field checking community and complex workshop or other (including evaluation on the civil work contracts. ad-hoc events in Q4 implementation of EMP) of 2018 or Q1 of prior to processing the 2nd 2019: term of payment. Evidence of this activity can be seen in Appendix 12. 3 The Local Environmental The DLHs should PIC: DLHs Partially achieved - Some Agencies (DLH) have not undertake random DLHs did this but no yet conducted random checking during Schedule: recorded documents checking during construction and after reported. All mitigation During site visits and construction and after completion of the measures and the ad-hoc events in Q4 completion to inspect construction works. monitoring process were of 2018 and Q1 of environmental procedures carried out intensively by the 2019 and impacts. NUSP-2’s consultants along with local governments, including the DLHs.

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Status/Progress No Key Issues / Gaps Corrective Actions PIC & Schedule up to Dec 2018 4 There is no record or The CIO/BKM assisted PIC: Partially achieved - For the documentation of the O&M by CC and CA should • BKM/CIO assisted community contracts and mechanism formula. make the record or by CA/CC for complex civil works, these documentation of the community had been incorporated into O&M mechanism contracts. integral part of the CAP. The formula. • City/District Satker example of O&M mechanism for complex civil can be seen in Appendix works and for 13. NSDs. Schedule: For the NSD, the O&M • Q4 of 2018 for mechanism has been community formulated in the Major’s contracts and Decree on NSD’s complex civil Management Board of works. Palopo (see Appendix 14), • Q4 of 2018 for whereas that for Kendari Kendari and NSD is being processed. Palopo NSD. • Q1 of 2019 for Bima and Kapuas NSD. 5 There is no environmental The RMC Safeguard PIC: Completed - Each RMC safeguard monitoring specialists and the CCs RMC Safeguard Safeguard specialist has report from the RMC to be in coordination with City Specialists, CCs in submitted four quarterly incorporated to NMC Satker and LCO should coordination with progress reports on annual monitoring report. prepare regular City Satker safeguard activities within environmental 2018 to the NMC. The monitoring reports Schedule: example of the mentioned including any Q4 of 2018 and Q1 report is included in complaints raised of 2019 Appendix 15. before, during and after implementation of construction works. 6 Incomplete SPPL, UKL- The RMC Safeguard PIC: RMC Safeguard Completed - SPPL, UKL- UPL and Environmental specialists and the CCs Specialists, related UPL & Environmental Permit Permit for community in coordination with City CCs in coordination for the mentioned contracts in Palembang Satker should recheck with respective City community contracts have City, Tanjung Balai City, the process of and Satker of been completed. An Sukabumi City, obtain the incomplete Palembang, Tanjung example of SPPL of Tanjung Banjarmasin City and SPPL and UKL-UPL Balai, Sukabumi, Balai is included in Kendari City documents. Banjarmasin and Appendix 16. Kendari. Schedule: Q4 of 2018 7 Incomplete SPPL, UKL- The RMC Safeguard PIC: Completed - SPPL, UKL- UPL and Environmental specialists and the CCs RMC Safeguard UPL & Environmental Permit Permit for complex civil in coordination with City Specialists, related for the mentioned work packages in Satker and LCO should CCs in coordination community contracts have Bengkulu City and Bone recheck the process of with respective City been completed. Examples City and obtain the Satker of Bengkulu of SPPLs and Environmental incomplete SPPL, UKL- and Bone. Permit of Bone are included UPL and Environmental in Appendix 17. Schedule: Permit documents. Q4 of 2018

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Status/Progress No Key Issues / Gaps Corrective Actions PIC & Schedule up to Dec 2018 8 Twenty four (24) SPPL of The City Satker City Satker Partially achieved - As this community contracts and acknowledged all Schedule: online registration process one of complex civil work formulated SPPLs and takes a lot of requirements in Semarang City are still gave recommendation Q1-2019 and unpredicted long time, in the registration process for these SPPLs as the the construction works keep due to bureaucracy basis for the mitigation proceeding with obstacles. measures, so that the recommendation from the construction works can City Satker. All construction keep proceeding even works of community though without contracts was completed recommendation from now. Only one complex civil the DLH. Thus, the City work in Tambak Rejo has Satker took the been continuing through responsibility to make multi-years contract and will sure that mitigation be reported in the next measures were report. implemented and monitored and the construction works were on schedule.

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CHAPTER 9. CONCLUSIONS AND RECOMMENDATIONS

50. Conclusions. In 2018, there were a total of 228 subprojects of NUSP-2 conducted in 99 neighborhoods (kelurahan) located in a total 20 cities and districts throughout Indonesia. These include 215 community contracts (skala lingkungan), 9 complex civil work contracts, and four 4 New Site Development packages in Kendari, Palopo, Bima cities and Kapuas District.

51. Based on Environmental Assessment and Review Framework (EARF), the project implementation is required to comply with several requirements. Paragraph 26 and 28 of the EARF mentioned the preparation of SPPL and IEE documents for each subproject. There were 224 subprojects (125 packages of community contract and 9 packages of complex civil work) that required the SPPL documents; of which 189 SPPLs for community contracts and 8 SPPLs for complex civil works have been registered and accepted by respective Environmental Agency or related agency. 25 SPPL in Semarang city have not been published yet. As for the NSD, four IEEs (for Kendari, Palopo, Bima and Kapuas District) have been formulated and approved by ADB.

52. In addressing the Environmental Assessment and Review Framework requirement, the NUSP-2 has adopted the screening list mechanism using series of checklist forms (SG 1 – 5) from which potential impacts of the project/sub-project are identified and mitigated, and these measures are incorporated into the SPPL, UKL-UPL, and IEE. The monitoring of environmental mitigation was conducted in a participatory and consultative manner, involving the related stakeholders particularly the community. Monitoring of environmental mitigation on the projects/sub-projects implemented has generally improved over the previous year with regards to the capacity building conducted, completeness and quality of supporting documents provided for this 2018 monitoring report.

53. As for the responsibility of the agencies and community organizations presented in Table 3, the only partially complied status is about the proposals, contracts, and checklists which were not disclosed on the neighborhood boards. However, the process of preparing these checklists, proposals and contracts were conducted in a participatory and transparent manner through series of neighborhood meetings.

54. The NUSP-2 is a community-driven development project involving extensive and transparent neighborhood meetings (Musyawarah Kelurahan) in Q1 of 2018. These meetings raise community understanding towards the project and gather community’s proposal and agreement on the priority of infrastructure constructed in 2018, as well as on the timeline and workloads. Subsequently, the construction of infrastructure started in Q2 of 2018. As the result of this approach, the NUSP-2 did not receive complaints or grievances for the reporting period of 2018.

55. Some corrective actions for pending or key issues identified in 2017 and 2018 in Table 5 were completed and some are still partially achieved. Those which were completed are: providing documentation on the monitoring and evaluation of environmental safeguard

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implementation by the Executing Agencies; empowering the LCOs for monitoring the implementation of EMP associated with the community contract and complex civil works; each RMC Safeguard Specialist submitted four QPRs on safeguard activities in 2018 to the NMC; and providing completed missing SPPLs of community contracts from six cities (Palembang, Tanjung Balai, Sukabumi, Banjarmasin and Kendari), and of complex civil works from two cities (Bengkulu and Bone). Those corrective actions which are still partially achieved will be included in the recommendation below

56. As there are still few challenges to complete the good quality data or to support with documents required to comply with the EARF, we still need to put more attention on this discrepancy. It seems that capacity building on safeguard compliance activities through direct practice still need to be conducted until the end of the project to ensure the sustainability of the project.

57. Recommendations. Some key issues that need corrective and further actions in 2019 are: i. The Local Environmental Agencies needs to conduct random checking during and after completion of the construction works in 2019; ii. Monitoring the formulation of O&M mechanism for Kendari, Bima and Kapuas NSD in the Q1 2019; iii. Monitoring the continuation of multi-years contract in Tambak Rejo neighborhood, Semarang City (to be reported in the next report); iv. Monitoring the implementation of safeguard screenings in all planning and implementation of infrastructure works in 2019; and v. Monitoring the Environmental Management Plan of IEEs for Bima and Kapuas NSDs to be reported in separate reports.

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APPENDICES

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Appendix 1. List of SPPL of Community Contracts

Number of No City / District (Province) Neighborhoods List of SPPL* for Community Contracts Involved 1 Tanjung Balai city, North 5 All SPPLs are received by DLH on 9 April 2018 (First Sumatera Cycle) All SPPLs are received by DLH on 21 August 2018 (Second and Third Cycle) 2 Tanjung Jabung Barat 4 All SPPLs are received by DLH on 24 April 2018 (First District (Jambi Province) and Second Cycle) 3 Palembang City (South 10 All SPPLs are received by DLH on July and August Sumatra Province) (First, Second and Third Cycle) 4 Bengkulu City (Bengkulu 6 All SPPLs are received by DLH on June (First, Second Province) and Third Cycle) 5 Bandar Lampung City 10 The SPPL recommendation was issued by DLH on 11 (Lampung Province) July 2018 (First, Second and Third Cycle) 7 Batam City (Riau Islands 5 All SPPLs are received by DLH on 20 August 2018 Province) (First, Second and Third Cycle) 7 Sukabumi City (West 4 All SPPLs are received by DLH (First, Second and Java Province) Third Cycle) 8 Semarang City (Central 11 All SPPLs have been provided but not yet gotten Java Province) recommendation, as the online process application takes long time (First, Second and Third Cycle) 9 Pekalongan City (Central 6 All SPPLs are received by DLH (First, Second and Java Province) Third Cycle) 10 Pasuruan City (East Java 5 All SPPLs are received by DLH on 10 April 2018 (First, Province) Second and Third Cycle) 11 Serang City (Banten 4 The SPPL recommendation was issued by Investment Province) and Integrated Services Office on 30 July 2018 (First, Second and Third Cycle) 12 Kapuas District (Central 3 All SPPLs are received by DLH (First and Second Kalimantan Province) Cycle) 13 Palangkaraya City 4 All SPPLs are accepted by DLH on 18 May 2018 (Central Kalimantan (First, Second and Third Cycle) Province) 14 Banjarmasin City (South 2 All SPPLs are received by DLH on 23 March 2018 Kalimantan Province) (First, Second and Third Cycle) 15 Bima City (West Nusa 3 All SPPLs are received by DLH on 18 May 2018 (First Tenggara Province) and Second Cycle) 17 Bone City (South 2 All SPPLs are received by DLH on 18 April 2018 (First, Sulawesi Province) Second and Third Cycle) 17 Makassar City (South 5 All SPPLs are received by DLH on 18 May 2018 (First, Sulawesi Province) Second and Third Cycle) 18 Palopo City (South 3 All SPPLs are received by DLH on 16 April 2018 (First Sulawesi Province) and Second Cycle) 19 Kendari City (South East 4 All SPPLs are received by DLH on 25 May 2018 (First Sulawesi) and Second Cycle) 20 Ambon City (Maluku 3 All SPPLs are received by DLH on 30 May 2018 (First Province) Cycle)

Note: *SPPL – statement letter to conduct environmental management and monitoring.

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Appendix 2. Evidences of Mitigation Measures in Semarang and Makassar 2.a. Materials covered with tarpaulin in Kelurahan Batua, Makassar

2.b. Road signage in Kelurahan Tambakrejo, Semarang

2.c. Stockpiling the construction materials properly on the road side in Kelurahan Tambakrejo, Semarang

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2.d. Construction workers wearing PPE in Kelurahan Batua, Makassar

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Appendix 3. List of SPPL of Complex Civil Work Contracts

Construction and/or Installation No City/District (Province) SPPL for Complex Civil Work Conducted

1 Kelurahan Kabil, Batam City Paved and concrete road and SPPL receipt No. (Riau Islands Province). drainage channel. 0021/DLH/SPPL/M/VIII/2018 and 0022/DLH/SPPL/M/VIII/2018 (dated 20 August 2018) issued by the DLH of Batam City 2 Kelurahan Sawah Lebar, Drainage channel and asphalt road. SPPL receipt No. Bengkulu City (Bengkulu 660.1/209/RK.SPPL/DLH-II/X/2018 Province) (dated 12 October 2018) issued by the DLH of Bengkulu City 3 Kelurahan Kandang Panjang, Asphalt road, green open space, SPPL is received by DLH of Pekalongan City (Central Java drainage channel and installation of Pekalongan City on 10 September Province) box culvert. 2018. 4 Kelurahan Tambakrejo, Drainage channel, solid waste SPPLs have been provided but not Semarang City (Central Java collection area and road. yet gotten recommendation, as the Province) online process application takes long time 5 Kelurahan Selat Dalam, Retaining wall, green open space, SPPL receipt No. Kapuas District (Central concrete bridge, construction of 661/098/Reg./DLH/IX/2018 (dated Kalimantan Province) archway and street lighting 17 September 2018) issued by the DLH of Kapuas District 6 Kelurahan Batua, Makassar Paved road and drainage channel. SPPL receipt No. 64 (dated 18 May City (South Sulawesi Province) 2018) issued by the DLH of Makassar City 7 Kelurahan Borong, Makassar Paved road and drainage channel. SPPL receipt No. 65 (dated 18 May City (South Sulawesi Province) 2018) issued by the DLH of Makassar City 8 Kelurahan Batu Merah, Ambon Installation of clean water pipelines, SPPL receipt No. 660/244a/DLHP, City (Maluku Province) drainage channel and concrete 660/244b/DLHP, 660/244c/DLHP road. issued by the DLH of Ambon City 9 Kelurahan Dara and Jatibaru, Asphalt road and drainage channel. SPPL receipt No. Bima City (West Nusa 800/21/DLH/IX/2018 (dated 7 Tenggara Province) September 2018) issued by the DLH of Bima City Note: DLH – Local Environmental Agency (Dinas Lingkungan Hidup)

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Appendix 4. Environmental Screening and Assessment for Batua Community Work Package, Makassar City

4a. The Use of Form SG-1 to Screen Out Negative Investment List Activities for Complex Civil Work Packages in Batua, Makassar City

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4.b. The Use of Form SG-2 to Identify Social and Environment Impacts

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4.c. The Use of Form SG-3 to Identify Potential Negative Impact and Mitigation Measures for Road and Drainage

17 Juli 2018

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4.d. The Use of Form SG-5 for Monitoring at 0%, 50% and 100% Progress

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4.e. Pictures of Safeguard Monitoring on 0%; 50% and 100% of Road and Drainage Infrastructure in Batua Neighborhood, Makassar City

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4.f. SPPL Sample of Community Contract in Bram Itam Kiri Neighborhood, Tanjung Jabung Barat District

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4.g. SPPL Sample of Complex Civil Work Contract in Selat Dalam Neighborhood, Kapuas District

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Appendix 5. Evidences of Public Consultation for Community Contract in Batua Neighborhood, Makassar City

5.a. Pictures of Public Consultation

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5.b. Minutes of Meeting of Public Consultation

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5.c. List of Attendance of Public Consultation

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Appendix 6. Evidences of Public Consultation for Complex Civil Work in Tambakrejo Neighborhood, Semarang City

6.a. Pictures of Public Consultation

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6.b. Minutes of Meeting of Public Consultation

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6.c. List of Attendance of Public Consultation

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Appendix 7. Evidences of Training of Trainers Workshop

7.a. Invitation Letter

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7.b. Rundown of Training of Trainers Workshop

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7.c. Pictures of Training of Trainers Workshop

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7.d. List of Attendance of Training of Trainers Workshop

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Appendix 8. Evidences of Mid-Term Review Workshop

8.a. Invitation Letter

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8.b. Rundown of Mid-Term Review Workshop

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8.c. Pictures of Mid-Term Review Workshop

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8.d. List of Attendance of Mid-Term Review Workshop

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Appendix 9. Evidences of the Year-End Review Workshop

9.a. Invitation Letter

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9.b. Rundown of the Year-End Review Workshop

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9.c. Pictures of the Year-End Review Workshop

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9.d. List of Attendance of the Year-End Review Workshop

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Appendix 10. Evidences of the Year-End National Coordinating Meeting

10.a. Invitation Letter

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10.b. Rundown of the Year-End National Coordinating Meeting

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10.c. Pictures of the Year-End National Coordinating Meeting

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10.d. List of Attendance of the Year-End National Coordinating Meeting

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Appendix 11. Picture of Ad-Hoc Meeting Between DGHS and NMC at NMC Office, Jakarta (June 2018)

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Appendix 12. Picture of field checking by PPK of Semarang City in Mangkang Wetan Neighborhood (27 August 2018)

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Appendix 13. An Example of O&M Mechanism in Bontorannu, Makassar

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Appendix 14. O&M Mechanism has been formulated in the Major’s Decree on NSD’s Management Board of Palopo

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Appendix 15. An Example of RMC Safeguard Specialist’s QPR

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Appendix 16. An Example of Approved Community Contract SPPL of 2017 from Beting Kuala Kapias Neighborhood, Tanjung Balai City

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Appendix 17. An Example of Approved Complex Civil Works SPPL of 2017 and its related Environmental Permit Act from Bone District