Environmental and Social Monitoring Report Safeguard and Social Monitoring Report Appendix G – Biodiversity Monitoring 2016 (Monitoring period: July – December 2016) June 2018 INO: Sarulla Geothermal Power Prepared by Sarulla Operations Limited for the Asian Development Bank. This safeguard and social 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. Biodiversity Monitoring 2016 SOL Geothermal Project Area, North Tapanuli, North Sumatra Camera trapping and Primate Surveys A picture of a female sambar deer (Rusa unicolor), listed as Vulnerable on the IUCN Red List and protected species under Indonesian law, but still heavily hunted throughout Sumatra, caught on camera trap at SOL. 27th of November 2016 by PanEco/Yayasan Ekosistem Lestari requested by Sarulla Operations Ltd. Executive Summary Biodiversity monitoring is an integral part of the Biodiversity Action Plan (BAP) that was developed as part of a large-scale geothermal development project in North Tapanuli, North Sumatra, Indonesia. Baseline surveys were carried out between November 2013-June 2014 by Yayasan Ekosistem Lestari [camera trapping, primate and wildlife surveys, reptile and amphibian surveys] and a team of experts looking at vegetation and bird diversity. This report discusses the results of repeat biodiversity surveys focusing on camera trapping [3rd March-14 August 2016] and specific primate surveys [25 July-16 August 2016] in the forest area where Sarulla Operations Limited (SOL) is developing a large-scale geothermal project in/adjacent to the protected Batang Toru forest complex. These repeat biodiversity surveys are intended as a monitoring tool to investigate temporal changes in wildlife populations in relation to human disturbance in the SOL project area. The aim is to balance SOL geothermal activities with minimal impact on wildlife populations and to provide recommendations what is needed to maintain healthy wildlife populations in the Batang Toru forest surrounding the SOL geothermal area. The biodiversity data compiled in 2016, through camera trapping and primate surveys, have been compared with baseline data that was collected in the SOL project area between November 2013-June 2014. A serious decline in species diversity as well as relative abundance of the more common species was encountered between the two sampling periods. Land clearing activities have proceeded at a serious pace, with very wide road construction through the forest to the WJP area, with large amount of traffic and infrastructure development, which have obviously had a negative effect on the wildlife living in the SOL area. Key findings ¡ A total of 17 mammal species were encountered during the biodiversity surveys [combined direct observations, camera trapping and sign] in 2016 compared to 27 mammal species during the surveys in 2014; ¡ 11 mammal species were recorded on camera trap in 2016 [664 trapnights, 117 events] compared to 19 species in 2014 [984 trapnights, 527 events]; ¡ Of the mammal species recorded in 2016, 8 mammal species are listed under the IUCN Red List as Critically Endangered, Endangered or Vulnerable, and 8 species are protected under Indonesian law; ¡ A significant reduction was found in the number of events/trapnights and the Relative Abundance Index (RAI) of species caught on camera trap between 2016 and 2014; ¡ Of the Critically Endangered species, only one pangolin (Manis javanica, CR) was caught on camera trap in 2016, compared to 3 independent events during the 2014 monitoring session; i ¡ No evidence was found of the other two species listed as Critically Endangered on the IUCN Red List, the Sumatran orangutans (Pongo abelii, CR) nor Sumatran tiger (Panthera tigris sumatrae, CR), evidence of both species still encountered during the 2014 surveys; ¡ Density of resident agile gibbon (Hylobates agilis, EN) groups was found to be 2.23 groups/km2 with no significant difference found between 2016 and 2014 density calculations; ¡ Density of resident Siamangs (Symphalangus syndactylus, EN) was found to be 0.7 groups/km2 with no significant difference found between 2016 and 2014 density calculations; ¡ Mitred leaf monkeys (Presbytis melalophos, EN) were directly observed once during the surveys; ¡ Pig-tailed macaques (Macaca nemestrina, VU) were the most common species caught on camera traps together with the Barking deer (Muntiacus muntjac) but their Relative Abundance Index was significantly reduced from 14.4 in 2014 to 4.5 in 2016; ¡ Sun bear (Helarctos malayanus, VU) sign (claw marks and feeding sign) were still encountered along 4 of the primate transects and a small sun bear cub [est. 3 months old] was encountered in a den site along one of the primate transects; ¡ Sambar deer (Rusa unicolor, VU) were caught on camera trap on 16 independent events, and although their Relative Abundance Index was reduced from 3.2 in 2014 to 2.4 in 2016, this was the least drastic reduction of the three most frequently camera trapped species; Recommendations Due to the high occurrence of a significant number of IUCN Red Listed species as well as wildlife protected under Indonesian law in the SOL project area, we provide the following recommendations: Connectivity: The new road constructed in the forested areas to WJP 1 is very wide [estimated 20 meters] and no arboreal connectivity has been maintained. This will seriously affect arboreal primates (gibbons, siamang, orangutans, mitred leaf monkeys) to continue to use their home ranges that have been dissected by this road development. A professional assessment is needed to evaluate and plan how to restore connectivity in the most likely places along this road to avoid further decline in movement patters of various arboreal and terrestrial species. Hunting: Hunting of wildlife was still found to occur in the SOL project area, with a fresh snare encountered along one of the transects. The following recommendations are made to halt illegal hunting in the SOL area: ii ¡ Develop conservation/hunting agreements focusing on protected species with the main villages/hamlets close to the project area, and in return provide support for developing small enterprises that will provide sustainable protein alternatives (such as fish ponds, chicken farming, pig farming); ¡ Strict 24-hour control on free access using project roads; ¡ Establish a SOL wildlife protection team with a clear mandate to patrol forest area surrounding the SOL project area. Illegal Logging: Illegal logging within the SOL project area was still encountered on several occasions with piles of sawn timber encountered on three occasions. General recommendations: ¡ Human disturbance (i.e. noise, motorbikes, music), as well as dogs, cats, and invasive species should be minimized as much as possible, as well as increased garbage management; ¡ Strict regulations should be put in place regarding the above, both for SOL workers, contractors, visitors and local communities passing through the area; Biodiversity monitoring: ¡ Relating to the steep decline in Relative Abundance Index of most of the more common species, and decline in species diversity observed between 2016 and 2014, we recommend more intensive camera trapping to be carried out with similar amount of trapnights [and time period] as in 2014 so that comparison of biodiversity data between years will be more solid; ¡ We recommend repeat bird and reptile/amphibians surveys as important indicators of ecological stability, as well as abundance measures regarding illegal hunting for song birds; General Comments: Because of its scale and importance to the local economy, SOL is perfectly placed to introduce improved environmental practices by implementing the above recommendations for reduced disturbance, reconstruction of connectivity, and prevention of hunting of protected wildlife, illegal logging, and garbage management. While the company may feel it maintains the support of local communities by bowing to pressure to allow open access to the forests surrounding its worksites, in the long term this policy can rebound on the company as its practices become more widely known. On the other hand, rigorously imposing best practices on its own workforce and dissemination of these amongst local communities will enhance the company's international reputation, provide a strong case study for other companies operating in Indonesia, and modify environmentally damaging practices by local communities that appear to currently be accelerating around the work sites. iii Furthermore, the company is building a relatively environmentally-friendly energy power plant that have local impacts on the highly biodiverse and unique Batang Toru forests. But it has the opportunity to play a very important role in the long-term conservation of the wider Batang Toru forest complex (both East and West blocks), thus further demonstrating a wider commitment to environmental best practices and conservation. iv Credits Report prepared by PanEco/Yayasan Ekosistem Lestari: • Gabriella M. Fredriksson, • Graham Usher, • Matthew G. Nowak; Field data collection & survey teams: • Eka Siswiyati (Primate surveys) •