Social Due Diligence Report Project Number: 52316-001 Loan 3793-INO Due Diligence Report July 2021 Indonesia: Emergency Assistance for Rehabilitation and Reconstruction (Component 1: Public Works Infrastructure) Rehabilitation of Tertiary Canals (BGKN 1-7) of Gumbasa Irrigation Subproject Prepared by: Directorate General of Water Resources, Ministry of Public Works and Housing for the Asian Development Bank. This due diligence 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. ABBREVIATIONS ADB - Asian Development Bank CAP - Corrective Action Plan CPMU - Central Project Management Unit DDR - Due Dilligence Report DED - Detailed Engineering Design DGWR - Directorate General of Water Resources EA - Executing Agency EARR - Emergency Assistance for Rehabilitation and Reconstruction GRM - Grievance Redress Mechanism IA - Implementing Agency IP - Indigenous People IR - Involuntary Resettlement MPWH - Ministry of Public Works and Housing O&M - Operationand Maintenance PCO - Public Complaints Officer PIB - Public Information Booklet PIU - Project Implementation Units PMC - Project Management Consultant PMU - Project Management Unit PNPM - Program Nasional Pemberdayaan Masyarakat (National Community Empowerment Program) PPC - Project Preparation Consultant PPK - Pejabat Pembuat Komitmen –Subproject Manager RCCDF - Resettlement and Customary Community Development Framework SIA - Socio Impact Assessment S3RBO - Sulawesi III River Basin Organization (BWSS III) SPS - Safeguards Policy Statement WUA - Water User Association This due diligence 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. Your attention is directed to the “terms of use” section of this website. 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. 2 TABLE OF CONTENT Abbreviations ........................................................................................................................ 2 Excutive Summary 5 I. Introduction ..................................................................................................................6 A. Project Background ............................................................................................. .6 B. Tertiary Canal Rehabilitation Serving 1,079 ha .....................................................6 II. Due Dlligence Purpose and Approach...................................................................... .10 III. Information Obtained .............................................................................................. .. 11 IV. Consultation, Grievance Redress Mechanism and Monitoring .......................... ...... 16 V. Institutional Arrangements .............. ........... ........... ........... ........... ........... ............. 24 VI. Compliance Assessment and Corrective Action Plan............................................... .25 A. Compliance Assessment ....................................... ........................................... 25 B. Corrective Action Plan ......................................................................................... 27 List of Tables Table 1. Summary of Twenty Tertiary Canals Not Affecting Land Ownership........................ 8 Table 2. Total Land Owned vs Total Donated Land From the 27 Land Donors of the 1970s 13 Table 3. Farmers’ Age in Pandere and Kalawara Village (Gumbasa Subdistrict) 14 Table 4. Farmers’ Age in Sibalaya Selatan and Lambara Village (Gumbasa Subdistrict) 15 Table 5. Summary of Consultations with Heads of WUAs.....................................................17 Table 6. Summary of Consultations with Village Office ........................................................18 Table 7. Summary Consultations with Farmers and WUAs along the Main Canal between BGKn 1 – BGKn 7 ...................................................................................................19 Table 8. GRM Process and Timeframe..................................................................................21 Table 9. Compliance of the Originally Adopted Procedures for Tertiary Canal Development with RCCDF Requirements .....................................................................................25 Table 10. Corrective Action Plan ...........................................................................................28 List of Figures Figure 1. Location of the Tertiary Canal System Serving 1,079 ha.........................................7 Figure 2. Spatial Plan Map of Gumbasa Subdistrict..............................................................12 Figure 3. The GRM during the Construction Phase ..............................................................22 List of Appendices Appendix 1. Tertiary Canal(s) operated/ maintained by the WUA Beringin Jaya BGKn 1.....30 Appendix 2. Tertiary Canal(s) operated/ maintained by the WUA Setia Kawan ................. 31 Appendix 3. Tertiary Canal(s) operated/ maintained by the WUA Gumbasa Indah ..............32 3 Appendix 4. Tertiary Canal(s) operated/ maintained by the WUA Ojolali .......................... ..33 Appendix 5. Tertiary Canal(s) operated/ maintained by the WUA Baru Mekar ................. ...36 Appendix 6. Tertiary Canal(s) operated/ maintained by the WUA Delumpa ..................... ..39 Appendix 7. Tertiary Canal(s) operated/ maintained by the WUA Tunas Muda...................40 Appendix 8. Tertiary Canal(s) operated/ maintained by the WUA Tunas Harapan ............. 41 Appendix 9. Tertiary Canal(s) operated/ maintained by the WUA Mapasitujue .................. 44 Appendix 10. Minute of Consultation Held by PPC 15 February........................................ 45 Appendix 11.Minute of Consultation Held by PPC 16 February ........................................ 47 Appendix 12. Minute of Consultation Held by PPC 17 February 2021 ............................... 51 Appendix 13. Minute of Consultation Meeting Held 18 February 2021 ............................... 55 Appendix 14. Minute of Coordination Meeting Between the Irrigation Commission of Central Sulawesi Province and the Sigi Regency ......................................... ..59 Appendix 15. Estimated Number of Farmers Donating Land in the 1970’s 66 4 EXECUTIVE SUMMARY 1. ADB approved two emergency assistance loans for the Emergency Assistance for Rehabilitation and Reconstruction (EARR) for Palu in June 2019. EARR is supporting the Government of Indonesia in building back better critical infrastructure damaged by the devastating natural disasters occurred in Central Sulawesi Province in September 2018. One of EARR’s subprojects is the rehabilitation and/or upgrading of the Gumbasa irrigation system. In mid-2020, the Sulawesi III River Basin Organization (S3RBO) in Palu, Central Sulawesi proposed to rehabilitate the Gumbasa tertiary, quaternary, and drainage canals for a service area of 1,079 hectares, primarily using a labor-intensive approach. S3RBO rehabilitated the primary and secondary canals for this service area with government owned resources. ADB agreed in principle to S3RBO’s proposal in August 2020 and the ADB review mission in February 2021 confirmed this agreement with the understanding that the rehabilitation would not include quarternary canals and tertiary drains and would be subjected to a social and environmental safeguards due diligence assessment. 2. The tertiary canal rehabilitation will be undertaking by Water Users Associations (WUAs) using the P3A contracting modality in accordance with government policies and MPWH regulations. All 25 tertiary canals serving the 1,079 ha - with a total length of 25.95 km - are proposed to be rehabilitated. The rehabilitation works will mainly involve repair of stone masonry canal lining, construction of some new lined canal sections, reshaping and strengthening of existing embankments, and repair of existing diversion and/or drop structures as well as the construction of new structures. The tertiairy canal system between main canal stations BGKn.1 and BGKn.7 is located in the Gumbasa and Tanambulava sub-districts, Sigi Regency. Detailed designs together with work quantities and cost estimates for each tertiary canal have been prepared. 3. In November-December 2020, the Project Preparation Consultant (PPC) engaged by MPWH to assist in the preparation of the Gumbasa irrigation subproject conducted a detailed field asessment to check the condition of the 25 tertiary canals. This field assessment was conducted with the participation of WUA members, S3RBO representatives, and village officials. The assessment observed the following three typical situations: (i) canal sections with a right- of -way (ROW)1 clearly visible in the field and following the original alignment: 16 km (applies for 20 out of the 25 tertiary canals; the farmers are not using the ROW of