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Ministry of Public Works and Housing Regional Infrastructure Development Agency MINISTRY OF PUBLIC WORKS AND HOUSING REGIONAL INFRASTRUCTURE DEVELOPMENT AGENCY INDONESIA TOURISM DEVELOPMENT PROGRAM TECHNICAL ASSISTANCE COMPONENT TERMS OF REFERENCE FOR PREPARATION OF AN ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK 10 MARCH 2017 TABLE OF CONTENTS TABLE OF CONTENTS ....................................................................................2 1.0 BACKGROUND ......................................................................................3 2.0 OBJECTIVE OF THE ASSIGNMENT .....................................................5 3.0 DESCRIPTION OF THE IPF COMPONENT...........................................5 3.1 INTEGRATED TOURISM MASTER PLANNING ........................................... 6 3.2 DOWNSTREAM PLANNING DOCUMENTS AND STUDIES ........................ 7 3.3 PROGRAM MANAGEMENT CAPABILITIES ............................................... 7 3.4 ADDITIONAL STUDIES ................................................................................ 8 4.0 SCOPE OF WORK .................................................................................8 4.1 TASK 1: PROJECT DESCRIPTION ............................................................. 8 4.2 TASK 2: GENERAL CHARACTERISTICS OF THE PROJECT AREAS ...... 8 4.3 TASK 3: POTENTIAL ENVIRONMENTAL, SOCIAL, AND CULTURAL IMPACTS OF THE IPF COMPONENT .......................................................... 8 4.4 TASK 4: INSTITUTIONAL AND REGULATORY FRAMEWORK ................. 9 4.5 TASK 5: IMPACT MITIGATION AND COMPLIANCE WITH WORLD BANK SAFEGUARDS POLICIES ............................................................................ 9 4.5.1 Subtask 5A: Implementing Bank Safeguards Policies in the Integrated Tourism Master Planning Process .................................. 9 4.5.2 Sub-task 5B: Incorporating Bank Safeguards Policies in Feasibility Studies and Designs ...................................................................... 10 4.5.3 Sub-task 5C: Screening Methodology ........................................... 11 4.6 TASK 6: ESMF IMPLEMENTATION CAPACITY-BUILDING ..................... 11 4.7 TASK 7: CONSULTATIONS AND DISCLOSURES ................................... 11 5.0 CONTENT OF THE ESMF .................................................................... 11 6.0 WORKING ARRANGEMENTS AND DELIVERABLES .......................12 2 1.0 BACKGROUND 1. The Government of Indonesia (GOI)’s overall (emerging) program for developing tourism and increasing its contribution to GDP, foreign exchange revenues, and job creation across Indonesia has four key program areas: (i) connectivity, basic and tourist service infrastructure and services; (ii) tourism workforce skills development and SME support; (iii) international marketing, investment promotion and licensing services; and (iv) institutions and mechanisms for program planning, coordination, implementation, monitoring and preservation of the natural and cultural assets that are critical to future tourism growth. The Government of Indonesia intends to apply for financing in the amount of US$200 million equivalent from the World Bank toward the cost of the Indonesia Tourism Development Program, and has applied for advance (loan and grant) financing towards the preparation and initial implementation. 2. The proposed World Bank operation has two complementary components—an approximately US$500 million Program using the Program for Results (PforR) instrument and an approximately US$20 million technical assistance component using the Investment Project Financing (IPF) instrument. The Program consists of government expenditure programs in four Results Areas (RA): RA 1 -- connectivity, basic services and tourism infrastructure and services; RA2 -- skills and SME development; RA 3 -- business and investment climate; and RA 4 -- institutional capacity building to facilitate integrated and sustainable tourism development. It is proposed to be supported by a US$180 million World Bank Loan, and US$320 million in government financing. The technical assistance component consists of consultants’ services to support the preparation of: (i) integrated tourism master planning; (ii) downstream planning documents and studies; (iii) program management capabilities, including capacity building to strengthening the natural, cultural and social asset monitoring and preservation capabilities (the establishment of which is included in RA 4 of the PforR program); (iv) additional studies as needed to support RA 2, RA 3, and RA 4, e.g. in SME and skill development and business climate improvement. 3. The Government’s program covers ten (10) priority tourism destinations listed below. The PforR Program is addressing the first three, which are therefore described in greater detail, and the activities that will be supported by the IPF component will therefore focus on those three (1- 3). 1. The island of Lombok includes three areas for tourism development: the Gili Islands, Senggigi and the southern coast. Lombok has a total population of approximately 3.3 million and a total land area of 4,379 km2. The Gili Islands and Senggigi can absorb an increasing number of visitors, if managed well. On the Gili Islands (in Kecamatan Pemenang)—a beach and diving destination—environmental sustainability needs to be improved by addressing key basic services deficiencies (such as water, sanitation and solid waste management). For Senggigi’s development (Kecamatan Batu Layar), and its northward development to Kecamatan Tanjung, it will be particularly important to establish and enforce planning controls to maintain its ‘boutique’ character, which was created through 20 years of small-scale hotel development. To realize Lombok’s full potential, a next phase of larger-scale hotel development is needed, which is currently being undertaken by the Indonesia Tourism Development Corporation (ITDC), and is not part of the Program. This would incentivize the establishment of direct air routes to proximate source markets, especially Australia. This would facilitate further tourism development along the southern coast (Kecamatans Pujut, Praya Barat, Sekotong and Jerowaru). Australian visitors could visit Lombok as a ‘base destination’, rather than only as a side trip from Bali. Lombok, with resort development in the south, and related marketing, can also become a new destination for Chinese and other East Asian visitors. 3 2. Borobudur-Yogyakarta-Prambanan. The Borobudur area (Kecamatan Borobudur and Kecamatan Mungkid) includes the Borobudur Temple Complex—an UNESCO World Heritage Site, Pawon Temple and Mendut Temple. Other attractions are the sunrise spot of Punthuk Setumbu, the prayer house of Bukit Rhema and surrounding cultural villages. The Prambanan-Boko area (Kecamatan Prambanan in Central Java Province and DI Yogyakarta) includes the Prambanan Temple Compound and Ratu Boko. Prambanan Temple Compound—another UNESCO World Heritage Site, Sewu Temple, Bubrah Temple and Lumbung Temple. In Yogyakarta, key attractions are the Kraton (Palace), the sultan’s residence and a living museum; Taman Sari (Water Castle), a former royal garden of the Sultanate of Yogyakarta, and Malioboro shopping street. To avoid growing dissatisfaction and stagnation, especially amongst foreign visitors, a significant revision of the Borobudur experience is needed. Borobudur-Yogyakarta-Prambanan is mostly expected to remain part of a destination tour for more foreign visitors (as ‘must-see’), but can also become a standalone destination for some proximity markets. If the Borobudur experience is enhanced, it could attract larger numbers of Asian visitors, for whom Borobudur-Yogyakarta-Prambanan could become a standalone destination. Through enhanced attractions (such as the cultural villages around Borobudur and tourism experience enhancement in Kota Yogyakarta and Prambanan), the average length of stay and daily expenditures can increase. 3. Lake Toba destination coincides with the boundary of Lake Toba’s Spatial Plan (Presidential Regulation No. 81 of 2014). Within this boundary there are three areas for tourism development. First, Parapat (Kecamatan Girsang Sipangan Bolon) is the main gateway to Samosir Island in the lake and offers the highest number of star rated hotels and the most developed tourism infrastructure. Second, Samosir Island (especially Kecamatan Simanindo and Kecamatan Pangururan) has several tourism attractions such as the Stone Chair of King Siallagan and King Sidabutar’s Tomb; Ambarita, a traditional village that provides sights of Batak culture; Parbaba beach; the hot springs at Gubung Pusuk Buhit Mountain; and Tutuk Village which concentrates tourism services. Third, Kecamatan Balige offers some interesting Batak architecture and is the closest lake-side village to Silangit Airport. Today, Lake Toba is largely a destination for local tourism, with declining appeal. With improvements in environmental sustainability, accessibility and activities, Lake Toba can become an attractive destination for a wider variety of domestic and some foreign visitors, particularly short haul weekenders from Singapore and Malaysia. • Tanjung Kelayang. Located on Belitung Island, Tanjung Kelayang is a popular destination for domestic tourists. Pristine beaches, mangroves, and small islands along the coast are important assets. The provincial and district governments already have plans in place for tourism development. Maintaining green space and restoring mangrove and other forests are important elements of the plans. • Tanjung Lesung. The beach and the destination’s proximity
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