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The World Bank Eastern Indonesia Port-Led Development Project (P173879) Public Disclosure Authorized For Official Use Only Public Disclosure Authorized Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Date Prepared/Updated: 02/03/2021 | Report No: ESRSC01841 Public Disclosure Public Disclosure Authorized Public Disclosure Authorized Feb 04, 2021 Page 1 of 22 The World Bank Eastern Indonesia Port-Led Development Project (P173879) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Indonesia EAST ASIA AND PACIFIC P173879 Project Name Eastern Indonesia Port-Led Development Project Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Transport Investment Project 12/6/2021 3/21/2022 Financing For Official Use Only Borrower(s) Implementing Agency(ies) Ministry of Finance Ministry of Transport Proposed Development Objective To improve sustainable maritime infrastructure and services in Eastern Indonesia with private sector participation. Financing (in USD Million) Amount Total Project Cost 800.00 Public Disclosure B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The Eastern Indonesian Port-led Development Project targets to enhance logistics performance in Eastern Indonesia through sustainable maritime infrastructure and services and private sector participation. To achieve this development objective, it is proposed that the project would have four main components, namely: (i) support for integrated development of the ports of Ambon and Kupang and leveraging private sector financing; (ii) support for modernization and upgrade of selected outer islands ports in Maluku and Nusa Tenggara Timur (NTT) provinces; (iii) support for enhancing shipping connectivity between outer islands feeder ports and the hub ports of Ambon and Kupang; and (iv) institutional development and capacity building. Feb 04, 2021 Page 2 of 22 The World Bank Eastern Indonesia Port-Led Development Project (P173879) The project implementation will require multi-agency cooperation at various levels. Organizations at national level include the Ministry of National Development Planning/National Development Planning Agency (Bappenas), Ministry of Finance (MoF), and Ministry of Transport (MoT). Coordination will need to involve Coordinating Ministry of Maritime Affairs and Investment (CMMAI), Ministry of Marine Affairs and Fisheries (MMAF), and Coordinating Ministry of Economic Affairs (CMEA). At sub-national level, government entities include the local planning bureau (coordination of provincial activities), the local transport agency (responsible for local port planning, development and operation), and the local Environmental Impact Management Agency (environmental overview). Traditionally, projects of this type would be implemented by MoT through the Directorate General of Sea Transport (DGST) serving as the project management unit (PMU). However, the World Bank would like to explore the option for at least for some components and activities to be led by provincial governments. These governments have already expressed their keen interest and commitment to the project. The option to be explored would have sub-national governments of the provinces of Maluku and NTT establish the project management units (PIUs) with funding coming For Official Use Only from MoF through on-granting and/or on-lending mechanism. PIUs at provincial level will be established within existing provincial agencies or by using the existing or creating a new sub-national government own enterprise (badan usaha milik daerah, BUMD) which will be assigned to implement the project. D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] The project activities (components 1,2,3 and 4) will be located in the provinces of Maluku and NTT in the eastern part of Indonesia. The project (c-1) will support private sector participation for integrated development of the new ports of Ambon (Maluku) and Kupang (NTT) with adjacent logistics parks and industrial zones, and will fund improvement of ancillary infrastructure and facilities (dredging works, access roads and cargo handling areas). Public Disclosure The new Ambon Port will be located in Waai area, approx.18 km NE from the Ambon Port. The port site will be selected from 3 potential sites, and a pre-FS is being conducted for the sites. The area constitutes secondary forest, shrubs, dry agricultural land with some abandoned areas. There are few houses near the two potential sites and partly completed power plant. Land at two sites belong to local community residents. These sites are connected to Ambon City by two-lane access road. The new Kupang Port is located SW of Kupang City, on West Timor, facing the Semau Straits. It is located next to Bolok Industrial Zone that is currently being developed. The area constitutes dry land which has been acquired by the provincial government. The site has an access road to Kupang City. There is a small fishing port nearby and some settlements. The project (c-2) supports modernization and upgrade of up to ten selected outer islands feeder ports in Maluku and NTT. A number of ports have been identified for potential upgrades and will be confirmed once the studies are completed. In Maluku, ports considered include: Tual (Kai Islands), Namlea (Buru Island), Amahai (Seram Island), Saumlaki (Tanimbar Islands), Banda Naira (Banda Islands) and Dobo (Aru Islands), located in coastal areas of the Sea of Banda, except Amahai and Namlea located on the coastal areas of the Sea of Seram. In NTT, the ports include Waingapu (Sumba Island), Rote (Rote Island), Ende (Flores Island), Kalabahi (Alor), Maumere, Larantuka (Flores), and Atapupu (West Timor Island), all are located on the coastal areas of the Sea of Sawu, except Larantuka which is closer Feb 04, 2021 Page 3 of 22 The World Bank Eastern Indonesia Port-Led Development Project (P173879) to the Sea of Flores. All ports are located in urban/ developed areas. Each port has a working area (DLKr) comprising land and sea, and an interest area (DLKp) that cover sea that surrounds the working area. The land area of the DLKr is dedicated only for port-related activities, and the sea areas within the DLKr and DLKp have zones for port-related and ship activities which for safety reasons are restricted for other uses. Upgrade of the ports will be within the existing DLKr particularly on the built up areas, e.g. (i) dolphins (for alongside quay extension), (ii) floating pontoons, (iii) berth extension and (iv) port yard capacity expansion (not beyond DLKr). The project (c-3) supports the enhancement of shipping connectivity between the feeder ports and new ports of Ambon and Kupang. The improved connectivity may lead to the increased sea traffic in the Seas of Banda and Seram, as well as in the Seas of Sawu and Flores, particularly nearby the DLKr and DLKp areas where ports and ship activities are concentrated. The integrated development of the new Ambon Port, including the adjacent logistics parks and possibly the industrial For Official Use Only zone, will need land acquisition. Maluku and NTT are known for having Indigenous Peoples (IPs) whose lives are closely related to coastal and seas. The new ports and upgraded feeder ports would increase sea traffic nearby, which may affect the local communities, fishermen, IPs’ livelihoods and cultural practices. The associated infrastructure related to new ports could potentially be located adjacent to natural habitats and/or protected areas. Ports in the islands of Kalimantan and Natuna could also potentially be supported through c-4B&C. D. 2. Borrower’s Institutional Capacity The project implementation will be challenging and will require multi-agency cooperation at various levels. Organizations at national level include Bappenas, MoF, and MoT. Coordination will need to involve CMMAI, Ministry of Marine Affairs and Fisheries (MMAF), and CMEA. MOT, at DGST will, before appraisal, form a PMU that will include ES Focal Points to coordinate environmental and Public Disclosure social (ES) safeguards planning and implementation, to be assisted by Project Management Consultants (PMC). PMC will have ES specialists that will assist PMU to prepare the ESCP, SEP, LMP, ESMF, including RPF, PF and IPPF, and hold public consultations and will be responsible to ensure that these documents are consistently implemented. PMU will undertake screening and classification of the proposed subprojects and accordingly prepare ES documents in compliance with the ESMF. ES documents will be reviewed and approved by relevant local agencies and the World Bank. PMU will be tasked with day-to-day implementation and monitoring of ESMPs; obtain all clearances and fulfill government requirements; obtain data required for ES plans preparation; prepare monitoring and progress reports; as well as coordinate with relevant agencies at provincial/district level , such as the Planning Agency, Environmental Agency, Manpower Agency, etc. PMU is expected to collaboratively work with PIUs at the provincial level (once they are established during project implementation), particularly on the implementation of the ES documents. The team will explore,