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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

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1.0 BACKGROUND 1. The Government of (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 , 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.

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2. --. 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 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. 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, , 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 and other forests are important elements of the plans.

. The beach and the destination’s proximity to volcano, Ujung Kulon National Park, and the lands of the Baduy tribe, a reclusive indigenous group with a unique traditional lifestyle. There are plans in place for large-scale tourism development for the area.

. Bromo’s relatively unspoiled natural setting in a mountainous area and its active volcano are the main tourism assets.

• Labuan Bajo. reefs, pristine small islands, and the dragons are the main attractions for tourists.

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. Wakatobi is well known for its coral reefs and relatively unspoiled natural environment. Commercial dive resorts and live-aboard dive boats attract divers from many countries. Wakatobi is also home to sea gypsies (Bajau Laut), a unique ethnic group that essentially lives a nomadic life on the sea.

• Pulau Seribu. The Thousand Islands are mainly a weekend get-away for residents of . Water quality and coral reefs have been and are being adversely affected by wastewater and stormwater runoff from Jakarta.

• Morotai. Coral reefs, beaches, and relatively unspoiled environment are the main tourism assets.

4. One characteristic of the PforR instrument is that environmental and social impact management for the Program is undertaken using the Government’s safeguards laws, regulations, and procedures, supplemented with capacity-building and gap-filling activities identified in the Environmental and Social Systems Assessment (ESSA) prepared for the Program by the Bank. IPF instruments, on the other hand, are subject to GOI and World Bank’s operational policies (OPs) for environmental and social safeguards. In the case of technical assistance operations, this means that all plans, feasibility studies, and designs produced must be compliant with the relevant OPs. When the full range of plans and studies is not known in advance, as is the case in this operation, the approach to meeting that objective is for the Regional Infrastructure Development Agency (RIDA) (Badan Pengembangan Infrastruktur Wilayah, (BPIW)) of the Ministry of Public Works and Housing (MPWH), which is the Executing Agency for the program, both for the PforR and IPF, to prepare an Environmental and Social Management Framework (ESMF).

5. The RIDA is planning to prepare an ESMF for the IPF component. The ESMF is prepared to screen, identify, avoid, reduce, and mitigate the risks of the potential social and environmental impacts that could result from investments recommended in the Integrated Tourism Master Plans (ITMPs), detailed development plans and/or addressed in feasibility studies or design work financed under the IPF component. It is meant to provide the requirements, processes and procedures for the (1) incorporation of the GOI’s laws and regulations and Bank safeguards OPs in the Integrated Tourism Master Plan (ITMP) the component will finance for each of the three destinations, and in (2) the “downstream” studies it will also support, that may include more detailed development plans, feasibility studies, and designs. It will also (3) identify capacity building needs and provide recommendations for training and other capacity-building to strengthen implementing agencies at central and destination levels, to be provided by the Program Management Consultant the component will finance. 2.0 OBJECTIVE OF THE ASSIGNMENT 6. The RIDA of the MPWH intends to prepare the ESMF for the IPF component as explained in the below sections. 3.0 DESCRIPTION OF THE IPF COMPONENT 7. The IPF component has three main activities and a possible fourth one, each of which will be supported by one or more contracts for consulting services. Specifically, the IPF component will finance the following consultants’ services:

• Integrated tourism masterplans,

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• Downstream planning documents and studies: sectoral masterplans; and critical feasibility and design studies for selected works related to achieving RA 1 of the PforR program,

• Program management capabilities, including capacity building to strengthen natural, cultural and social asset monitoring and preservation capabilities, the establishment of which is included in RA 4 of the PforR program,

• Additional studies as needed to support RA 2, RA 3, and RA 4, e.g. in SME and skill development and business climate improvement.

3.1 INTEGRATED TOURISM MASTER PLANNING 8. Integrated tourism masterplans (ITMPs) will be prepared for each destination. These Plans with a planning horizon of 25 years will be based on a thorough demand assessment and economic analysis for each destination and will be prepared in close consultation with all stakeholders, including local communities and the private sector. Detailed site plans with planning horizon of 5 years will form the basis for medium-term investment planning for the key tourism areas. From the perspective of environmental and social management, they will provide the basis for development of tourism facilities and supporting infrastructure that is (a) consistent with the environmental, social and cultural opportunities and constraints of the destinations and (b) avoids degradation of the natural and cultural resources that are the assets that attract tourists.

9. These new plans respond effectively to the current challenges that exist in the Indonesian planning process. The existing plans are not sufficiently integrated across sectors, levels of government and private stakeholders. There is a need for developing comprehensive integrated tourism plans given the gaps in the existing instruments. The relevance of integrated instruments is to consolidate a cross-sectoral vision and implementation plan for a specific destination.

10. The objectives of the new integrated tourism masterplans are multiple. They will recommend on the scale and spatial location of future growth as well as establish policies and practices to ensure key assets are protected and environmental impacts are properly managed and monitored. They could—if adopted by relevant agencies/authorities—also provide the framework for expenditure and investment planning from 2018 onwards. Integrated tourism masterplans for each destination are critically needed for comprehensive long term investment planning and phasing and as a solid base for gradual and concerted improvement of the tourism carrying capacity of each destination. At the same time, sound master planning is an essential first step to upgrading basic infrastructure and services in local communities required to improve key indicators affecting tourism competitiveness (e.g. health and hygiene, environmental sustainability) and as a condition for inclusive tourism development. The scope of the activity includes, for each of the destinations:

• Assessment of the legal framework and plans which guide land use planning in the destination;

• Consultation with stakeholders to engage the private sector, local government and communities;

• Assessment of demand and opportunities for growth;

• Assembly, mapping and analysis of spatial planning, infrastructure, services and tourism facilities baseline information;

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• Interpretation of baseline data to identify and articulate environmental and social opportunities and constraints, in order to guide planning for tourism development away from sensitive or otherwise inappropriate locations toward locations that are favorable from the standpoint of potential impacts;

• Preparation and discussion of growth projections and development scenarios with assessment of financial, technical, environmental and social considerations;

• Detailing the preferred development scenario in close collaboration with stakeholders including its financial, technical, environmental and social impacts;

• Preparation of a phased integrated development and investment and financing plan for infrastructure, services and tourism facilities to guide and support accelerated sustainable tourism development in close collaboration with stakeholders (including an indicative program for the government’s 2018 investment/expenditure planning);

• Initial screening of potential risks and impacts and identification of environmental and social safeguards instruments that need to be prepared for the short-term priority investment and the likely institution(s) in charge of preparing such instruments;

• Preparation of practical guidance and specifications to prepare the identified environmental and social safeguards instruments for the short-term priority investment; and

• Preparation of a capacity building program, including community and government capacity building, in close collaboration with stakeholders to implement the ITMPs including environmental and social safeguards management.

3.2 DOWNSTREAM PLANNING DOCUMENTS AND STUDIES 11. Selected downstream planning documents and studies will be financed, including sectoral masterplans and feasibility studies and detailed engineering designs.The specific sectoral masterplans, feasibility studies and designs that will benefit from inclusion in the IPF component will be identified in the course of master plan preparation and guided by PforR Program objectives and results areas. 3.3 PROGRAM MANAGEMENT CAPABILITIES 12. The IPF component will also finance PforR Program Management support to the RIDA, including Indonesia Tourism Development Program planning, budgeting, quality control, supervision, monitoring, reporting, and coordination, to ensure that program implementation is according to the program objectives and is in compliance with the loan agreement. Tasks include: providing overall program management assistance; coordination of program activities; creating synergies among all stakeholders; ensuring accountability in program financial management, monitoring and reporting; assisting in preparing consolidated yearly expenditure program proposals; establishing a transparent Tourism Development Program Management Information System; ensuring environmental and social management framework (ESMF) are consistently applied; ensuring active local community participation; encouraging proper spatial planning practice in accordance with the Integrated Tourism Master Plans; building capacity at the destination level for monitoring and preservation of natural and cultural assets important for tourism; and ensuring proper complaint handling and resolution; ensuring adequate capabilities from all program stakeholders; ensuring timely delivery of reports and ensuring disclosure of the relevant documents.

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3.4 ADDITIONAL STUDIES 13. Results Areas 2, 3, and 4, might benefit from a limited number of studies being included in the IPF component. The pre-appraisal will be used to identify those studies (e,g., skills, SME, business climate) and capacity building activities that might benefit from inclusion in the IPF component. It is not anticipated that these types of studies will have environment or social impacts to be considered. However, these studies will be the object of an initial screening and if there are potential environmental or social considerations they will be integrated directly in the TORs. 4.0 SCOPE OF WORK

4.1 TASK 1: PROJECT DESCRIPTION 14. The ESMF preparation team will prepare a description of the IPF component (the “Project”) and its relationships to the PforR Program and the Government’s tourism program. The description will highlight aspects of the activities to be financed by the IPF that could have direct or indirect, positive or negative impacts on the natural and human environments. 4.2 TASK 2: GENERAL CHARACTERISTICS OF THE PROJECT AREAS 15. The ESMF preparation team will provide an overview of the environmental and socio- cultural characteristics of the three destinations, highlighting features that are particularly important for or sensitive to tourism development.

• Lombok Island (with a focus on the Gili Islands, Senggigi and the southern coast). • Borobodur-Yogyakarta-Prambanan triangle. • Lake Toba (with the boundary of Lake Toba’s Spatial Plan).

4.3 TASK 3: POTENTIAL ENVIRONMENTAL, SOCIAL, AND CULTURAL IMPACTS OF THE IPF COMPONENT 16. The ESMF preparation team will identify and describe the types of environmental, social, and cultural impacts that could result from IPF-financed activities. These will differ considerably among the four types of consultants’ services. However, in all cases potential environment and social impacts should be identified, avoided when possible and managed through the process described in subsequent sections of the ESMF in accordance with World Bank Safeguards policies. These include: - ITMPs which are intended to avoid in so much as possible and manage the adverse impacts of tourism development from the downstream investments recommended by the ITMPs that do not proceed in an integrated manner or with due regard for the environmental and social constraints of the destination. The consultant will identify potential impacts related to the master plans, their development scenarios and proposed investment types or specific investments that are recommended in an ITMP that could have a variety of adverse impacts over a wide area or specific area if not properly planned, designed, and implemented. - Feasibility studies and designs associated with specific infrastructure investments, for which the types of impacts are more site-specific and easier to identify and assess.

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- Detailed development plans lie between ITMPs and feasibility studies in terms of impact identification. - Program Management provides one of the mechanisms for capacity-building. One of the important scope of works in the program management is its responsibility to ensure that the ESMF to be developed in this assignment is consistently implemented by activities financed under the PforR. Additional studies of the sort being considered are unlikely to have impacts as previous described.

17. In performing this task, the ESMF preparation team should identify the area of influence of the activity, taking into account ancillary and associated facilities, regional impacts, potential sources of cumulative impact, and unplanned impacts that may be induced by planned investments. 4.4 TASK 4: INSTITUTIONAL AND REGULATORY FRAMEWORK 18. The ESMF preparation team will describe the institutional structure and responsibilities for management of environmental and social impacts at the three destinations. The ESMF preparation team will also identify and provide (a) the applicable Indonesian laws and regulations and (b) the relevant World Bank Operational Policies for environmental and social safeguards. The ESMF preparation team will conclude this task with an analysis of gaps between (a) and (b); this analysis will be useful in the subsequent task of determining (a) how the Bank safeguards can be implemented through the use of the standard Indonesian safeguards instruments and procedures – AMDAL, UKL/UPL, LARAP and IPP.; (b) actions to fill in the gaps for the future investments to be undertaken under the Integrated Tourism Master Plans and other related activities. 4.5 TASK 5: IMPACT MITIGATION AND COMPLIANCE WITH WORLD BANK SAFEGUARDS POLICIES 19. In completing the subtasks within Task 5, the ESMF preparation team should keep in mind that many of the investments identified in the ITMPs will not be financed by the Bank, either in separate investment operations or through the PforR Program. However, during the IPF implementation, it is expected that the counterpart will follow the ESMF for subsequent investments that take place as a result of the Integrated Tourism Master Plans.

4.5.1 Subtask 5A: Implementing Bank Safeguards Policies in the Integrated Tourism Master Planning Process 20. An effective approach for achieving compliance with the various Bank operational policies (OPs) in the ITMPs and detailed development plans will be to incorporate the relevant safeguards policies requirements in the ITMP terms of reference (TOR) that MPWH is currently preparing. The ESMF preparation team will review the policy requirements that are relevant for the ITMP as described in Task 4 and prepare text sections and annexes for the TOR that will become appendixes to the ESMF. Table A1 of OP 4.00 and Policy Objectives and Operational Principles may serve as a general reference to screen and identify relevant safeguards policy application to the Integrated Tourism Master Plans. Here are some examples that will not only provide the basis for compliance but will also enhance the planning process.

• OP 4.01 requires environmental and social analysis of alternatives, consideration of induced and cumulative impacts, disclosure and consultation throughout the process. These can be encompassed in the planning process.

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• OP 4.04 states that the Bank does not finance projects that result in conversion or degradation of critical natural habitat, prefers to site infrastructure on modified habitat rather than natural habitat, and requires mitigation measures and offsets to prevent loss of biodiversity when natural habitat is affected. These principles will guide site selection for investments.

• OP 4.10 lays out the procedures to be followed when a proposed investment may affected Indigenous Peoples. All of the steps including but not limited to free, prior, and informed consultation (FPIC), social assessment, participation in planning, provision of appropriate benefits, avoidance of resettlement, and protection of intellectual property can be made elements of the planning process when Indigenous Peoples reside in or use the area or affected by the investment.

• OP 4.11 states the Bank’s interest in preservation of physical cultural resources.

• OP 4.12 requires the Bank to avoid involuntary resettlement or access restriction to designated parks and protected areas when possible and minimize it when avoidance is not possible. These requirements have implications for site selection. The compensation that OP 4.12 requires in resettlement would be taken into account in comparing alternatives and estimating investment costs.

• OP 4.36 prohibits clearing of critical forest areas. The ESMF preparation team should provide sections or annexes to be included in or attached to ITMPs covering particular processes and requirements that should be followed in plan implementation, such as sufficient details on the Environmental Management Framework, Resettlement Policy Framework, Process Framework, and Indigenous Peoples Planning Framework. 4.5.2 Sub-task 5B: Incorporating Bank Safeguards Policies in Feasibility Studies and Designs 21. Feasibility studies and designs financed under the IPF component must comply with Indonesian Laws and Regulations as well as Bank’s safeguards policies. In the case of feasibility studies, the ESMF preparation team will prepare guidelines and terms of reference to ensure that appropriate elements of the Bank policies are incorporated in the studies. For example, comparison of alternative technologies, locations, capacities, construction techniques, and operating rules on environmental and social grounds is most appropriately carried out at the feasibility study stage. Feasibility studies will be accompanied by terms of reference for the appropriate environmental and social assessment, for which the ESMF preparation team will provide TORs in the ESMF. The type of feasibility study will determine the need to prepare specific safeguards instruments or the need to integrated directly safeguards requirements in the feasibility study. In the case of feasibility studies and detailed designs, the World Bank Group Environmental, Health, and Safety (EHS) Guidelines will need to be taken into account. As is the case for all IPF projects in Indonesia, if a complete a feasibility study or design package is going to be prepared, it should be accompanied by the required environmental and social assessment. The assessment should include an ANDAL/RKL/RPL or an UKL/UPL, augmented with elements to fill the gaps between Bank and Indonesian requirements and instruments. Similarly, LARAPs and IPPs should be prepared to accompany designs, and the consultant will prepare guidelines and TORs for them. The ESMF preparation team will provide these.

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4.5.3 Sub-task 5C: Screening Methodology 22. The ESMF preparation team will develop a screening methodology and checklist that will be used during ESMF implementation to determine what safeguards requirements and instruments are applicable. Screening criteria in OP 4.01 and other environment safeguards policies and Regulation Number 5/2012 of the Ministry of Environment will be used as the basis for the screening procedure. The screening criteria should also include criteria and procedures for identifying potential social impacts under OP 4.01, land acquisition and involuntary resettlement under OP 4.12 and Indigenous Peoples present and affected covered by OP 4.10

4.6 TASK 6: ESMF IMPLEMENTATION CAPACITY-BUILDING 23. The ESMF preparation team will assess the capacity of responsible agencies at the national and destination levels to implement the ESMF, identify gaps, and recommend activities to build the necessary capacity. The Program Management consultants’ services will support GOI in capacity-building.

4.7 TASK 7: CONSULTATIONS AND DISCLOSURES 24. The ESMF preparation team will assist MPWH in organizing consultations on the TORs of the ESMF as well as the draft ESMF at the national level and in the three priority destinations, document the proceedings, and provide in the final ESMF a summary of the consultation events, participants, issues and concerns raised, and their disposition. The ESMF preparation team will also guide the MPWH to disclose the Draft ESMF in its website both in English and Bahasa. 5.0 CONTENT OF THE ESMF 25. The ESMF preparation team will prepare a draft of the ESMF in English and Bahasa Indonesia for disclosure and consultations. After consultations have been completed, the consultant will prepare the final ESMF.

26. The ESMF will have the following contents: ▪ Executive Summary; ▪ Introduction. This contains project background, objectives and rationale for the ESMF, and scope and methodology used to develop the ESMF; ▪ Project Description; ▪ Environmental, social and cultural characteristics of the three destinations ▪ Potential impacts of the IPF components which include the ITMP, Detailed Development Plans, Feasibility Studies and Detailed Designs and their implementation; ▪ Institutional, legal, regulatory, and policy framework: the Indonesian Laws and Regulations; the relevant World Bank’s safeguards policies; the gaps between the Indonesian Laws and Regulations and the Bank’s safeguards policies and actions to reduce such gaps for the implementation of the IPF; ▪ Requirements for incorporating environmental and social considerations based on Bank OPs into the ITMPs and other plans.

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▪ Safeguard Screening: describing process to screen environmental and social impacts of specific potential investments for which feasibility studies or DED will be prepared that include: o Process to identify EA category of proposed activity;Process to determine which safeguards policies are relevant; and o Process to determine the required safeguards instrument(s) for the proposed investment ▪ Requirements for incorporating Bank OPs as well as Indonesian environmental and social requirements into feasibility studies and design. Sample terms of reference included as appendix ▪ Requirements for preparation of environmental and social documents (AMDAL/ESIA, UKL-UPL, LARAP, Program Action, IPP). Sample terms of reference included in appendix ▪ Organizational arrangements and institutional assessment and capacity-building for implementation of the ESMF. ▪ Capacity building and joint training program for the institutions responsible for implementing the ESMF; ▪ Budget for implementing the ESMF; ▪ Grievance Redress Mechanisms and Disclosures; ▪ Monitoring and evaluation arrangements of the implementation of ESMF, and ▪ Appendices, including screening checklist, model terms of reference for safeguards instruments, record of consultations, etc. 6.0 WORKING ARRANGEMENTS AND DELIVERABLES The ESMF preparation team will work under the guidance of and report to the Center of Strategic Region Development Work Unit of the RIDA of MPWH. As needed, the World Bank will provide guidance to the ESMF preparation team and review the Draft Final ESMF prior to disclosure. It is expected that the main deliverables are as follows:

Indicative timeline Send approved TOR of ESMF for translation 10-Mar-17 Send letter of invitation for public consultation on draft TOR of ESMF 17-Mar-17 Conduct consultation on draft TOR of ESMF on 3 destinations 3-April-17 Complete the public consultation in three destinations 12-Apr-17 Finish drafting the draft ESMF (in English) 19-Apr-17 World Bank clearance of draft ESMF 3-May-17 Send approved draft ESMF for translation to Bahasa Indonesia 4-May-17 Send letter of invitation for public consultation on draft ESMF 18-May-17 Upload and disclose on the WB Info Kiosk and MPWH website the approved and translated draft ESMF 18-May-17 Conduct public consultation on the draft ESMF in 3 destinations by MPWH and MOT 2-Jun-17 Complete the public consultation in three destinations 13-Jun-17 Minutes of the public consultation (in English) 20-Jun-17

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Submit the full draft of ESMF and public consultation minutes to World Bank for review and approval 28-Jun-17 Disclosure on the WB InfoShop of final ESMF 28-Jun-17

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