85586 INTEGRATEDSAFEGUARDSDATASHEET APPRAISAL STAGE Report No.: (generated once uploaded) Date prepared/updated: February 5, 2014 I. Basic Information . 1 Basrc . tD at a . P r0.1ec Country: Indonesia Project ID: P147893 Project Name: Technical Assistance for the Surabaya Urban Transport Corridor Development Project Task Team Leader: Taimur Samad Estimated Appraisal Date: February 27, 2014 Estimated Board Date: N/A Managing Unit: EASIS Lending Instrument: NLT A Sector: Urban Transport (75%), Public Administration (25%) Theme: Urban Development (100%) IBRD Amount (US$m.): N/A IDA Amount (US$m.): N/A GEF Amount (US$m.): N/A PCF Amotmt (US$m.): N/A Other financing amounts by source: USD 1.25 million (Indonesia Infrastructure Support Trust Fund) Environmental Category: A Is this a transferred project Yes [] No [X] Simplified Processing Simple [X] Repeater •] Is this project processed under OP 8.00 (Rapid Response to Crises Yes [ ] No [X] and Emergencies) 2. Project Objectives: The objectives of the Project is to provide Technical Assistance (TA) to conduct a feasibility study to support the development of Urban Transport Corridors in Surabaya, which aim: (i) to facilitate improvements in accessibility and mobility in Surabaya, and; (ii) to strengthen the City Government of Surabaya' s capacity for integrated urban transport plarming and management. 3. Project Description: The potential Urban Transport Corridor Development Project which will be supported by this TA activity (hereinafter defined as the Project), aims to apply an integrated planning systems approach to link infrastructure investments in mass transit with the development of urban corridors, enabling Surabaya to maximize the social and economic returns from urban transport investments. This T A is one of three T A activities under the Surabaya Urban Corridor Development Program that form an umbrella engagement supporting the City with technical assistance and advisory services at a total cost of US$1.63 million. This particular TA component is funded in the form of an RETF of US$ 1.25 million, which will be implemented by the Directorate of Transport, Bappenas. The Project consists of two main activities and outputs: I. Feasibility Analysis: (a) Ascertain best alignments, alternative investment options and sequencing. (b) Review, and revise where necessary, the demand forecasts and travel patterns along the alignments. (c) Conduct an economic cost-benefit analysis and assess financial and technical feasibility of transport technology. 2. Reference Design and Institutional Support: (a) Develop a reference design for core components of the selected routes, stations, and corridor improvements. (b) Propose associated institutional reforms required to ensure quality operations and management of the Surabaya transport system. (c) Prepare an environmental impact analysis (AMDAL), Land Acquisition and Resettlement Plan (LARAP) and Physical Cultural Resources Management Plan (as part of the Environmental Management Plan of the AMDAL) in compliance with the policies, principles and requirements of the World Bank safeguards policies. Capacity building related to the preparation of these instruments will be simultaneosuly carried out for the Directorate of Transport, Bppenas and the relevant officials of the City Government of Surabaya, in anticipation of the foreseen MRT system investment. (d) Prepare Pre-Qualification Documents and Bid Documents for a detailed design and/or a DBOT contract, depending on the COS' chosen development and procurement strategy. (e) Recommend an approprate formula for risk allocation and mitigation if a PPP arrangement is decided upon. (f) Assess regulatory environment and institutional setting to create a supporting environment for urban corridor management. It is foreseen that the Feasibility Study will result in a choice of investments in a particular sequence. For example, developing the N-S corridor and developing the E-W corridor in parallel or in series, or combining alignments to maximize ridership potential for each level of infrastructure investment. Technical recommendations on regulatory, planning and institutional reforms and capacity- building will be made to ensure sustainable operations and management of the Surabaya MRT System, in line with the chosen financial structure. 4. Project Location and salient physical characteristics relevant to the safeguard analysis: The Project will consist of a feasibility study and project preparation for an MRT system in the City of Surabaya, Indonesia's second largest city and the provincial capital of East Java Province. Hence, there are no physical works planned under the Project and not any physical characteristics directly relevant to the safeguard issues arising from this Project. There are, however, potential safeguards implications relating to the future potential investment and implementation of an MR.T system, which is intended to arise from the activities in this Project. Bank financing for that future investment has not yet been confirmed. The MRT system is likely to traverse highly-populated areas of Surabaya's central city, which comprises a large number of residents, a number of waterways, and sites of cultural heritage value that are being conserved by the City of Surabaya. The initial estimation of the alignment of the MRT system will be 16.7 km from North to South and 23 km from East to West. The focus of the feasibility study will likely a first phase of the MRT system, i.e. the 16.7 North to South proposed tramline investment. 5. Environmental and Social Safeguards Specialists on the Team: Social Safeguards: Indira Dharmapatni Environmental Safeguards: Krisnan Pitradjaja 6. Safeguard Policies Triggered (please explain why) Yes No Environmental Assessment (OP/BP 4.01) X The Project consists of Technical Assistance to the City Government of Surabaya to prepare the Feasibility Study (FS) for the MRT system. It is planned that the MRT will be built along the North- South (approximately 16.7 km) and East-West (approximately 23 km) corridors in the city, in iterative phases. Given the scale of the foreseen MRT investment, there is a large area of potential influence, where significant environmental and social impacts may occur. The Project should cover the preparation of an Environmental and Social Impact Assessment (ESIA), or ADMAL study in Indonesia term, for the future investment in the MRT system consistent with Bank safeguards requirements for OP/BP 4.0 1. The stand-alone ESIA will consist of environmental screening, scoping, and analysis of alternatives and assessment of the project's area of influence (including associated and ancillary impact to facilities, linked activities and cumulative impacts). This ESIA should be prepared to evaluate potential environmental and social impacts (due to the urban setting of the project) and to prepare the mitigation measures.. An Environmental and. Social Management Plan (ESMP) should also be prepared as part of the feasibility study. In addition, the Project should cover capacity building activities on environmental management, including Physical Cultural Resources (PCR), for the relevant stakeholders, particularly Directorate of Transport, Bappenas and the City Government of Surabaya. Natural Habitats (OP/BP 4.04) X Given the TA nature of this activity, the Project will not directly involve activities that will cause significant degradation and conversion to natural habitats and critical natural habitats. However the feasibility study to be supported under the Project will analyze potential investments that will require further assessment as to their impact on natural habitats. This TA will prepare a stand- alone Environmental and Social Impact Assessment (ESIA) for the planned project with adequate environmental screening, scoping, analysis of alternatives and assessment of the investment's area of influence (including associated and ancillary impact to facilities and cumulative impacts), in order to ensure that there is no significant degradation or conversion of natural habitats and critical natural habitats. If the ESIA does determine that the future investment will have an impact on natural habitat areas, the ESIA and ESMP should prepare mitigation measures, according to the Bank's standards. While no potential impacts to natural habitats are expected under the grant, OP/BP 4.04 has been triggered as a precautionary measure for this activity. The ESIA to be conducted under the activity will identify any potential impacts to natural habitats that might be caused by the proposed underlying investment and mitigation will be incorporated into the associated ESMP. Forests (OP/BP 4.36) X The Project is not expected to lead to an investment that is located in or affect forest. Pest Management (OP 4.09) X The Project does not relate to activities that use or lead to use of pesticides. Physical Cultural Resources (OP/BP 4.11) X The City Government of Surabaya is planning to build the MRT in two urban corridors, North-South and East-West. The Project will determine the most feasible alternatives for alignments, although both routes are likely to pass through historic areas of Surabaya, where various structures were built during the colonial period are listed as conservation sites. The Project, as part of the feasibility study, will need to prepare a plan for PCR Management for the MRT investment to avoid adverse impacts on historic sites, or if this cannot be avoided, to appropriately mitigate and manage impacts of the impacted PCR. This will form part of the ESIA and ESMP. Indigenous Peoples (OP/BP 4.10) X No Indigenous Peoples are.present in the investment area within the City of Surabaya Involuntary Resettlement (OP/BP 4.12) X The Project's outputs will lead to investment in an MRT System, which is planned to pass through built-up areas of the City of Surabaya, where settlements, businesses, PCR, and public social facilities are located. The Project through the feasibility study should assess the social impacts of the MRT investment (including a social assessment, potential land acquisition and relocation), prepare a Draft Land Acquisition and Resettlement Plan (LARAP) to address potential impacts. These activities will be carried out as specific outputs of the Project. The Draft LARAP will be updated during the MRT implementation as better information regarding the investment would be available, results of the Detailed Engineering Design (DED) will be available and the number of PAPs may change accordingly. The capacity building component of the Project should include management practices for any involuntary resettlement that is expected to occur during the implementation of the MRT system. Safety of Dams (OP/BP 4.37) X The Project does not involve a plan to build a dam. Projects on International Waterways (OP/BP 7.50) X The Project does not involve any activities that are, in any way, linked to International Waterways. Projects in Disputed Areas (OP/BP 7.60) X The Project does not involve any activities that are, in any way, linked to disputed areas. II. Key Safeguard Policy Issues and Their Management A. Summary ofKey Safeguard Issues 1. Describe any safeguard issues and impacts associated with the project. Identify and describe any potential large scale, significant and/or irreversible impacts: This Project triggers OP/BP 4.01, OP/BP 4.04, OP/BP 4.11, and OP/BP 4.12 as the foreseen investment in the MRT System, which is prepared by the Project activities, will cause environmental and social impacts, including involuntary resettlement. This should be accounted for in the design .and implementation of the Project activities. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The Project supports a Feasibility Study and preparation of the Surabaya Urban Transport Corridor development, which is expected to lead to an investment in an MRT system in the City of Surabaya. The potential future investment will have potential environmental and social impacts, including involuntary resettlement, which will require that safeguards impacts are addressed. 3. Describe any project alternatives (if relevant) considered to h~lp avoid or minimize adverse impacts. There are no alternatives to the current proposed activity. However, the Feasibility Study will evaluate alternatives alignment and design for the proposed follow-on MRT investment, which will attempt to avoid, or where it is required, minimize and mitigate the potential environmental and social impacts. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The grant recipient and executing agent, Directorate of Transport, Bappenas, will be required to assess the potential environmental and social impacts, including involuntary resettlement, which will be caused by proposed future MRT System that the Project is supporting to develop through a feasibility study and related project preparation activities. Hence, the Project will include the preparation of safeguard instruments to address these potential impacts as discussed above. The Terms of Reference (ToR) for the consultants to carry out the Feasibility Study will include the preparation of safeguard instruments that meets the World Bank's environmental and social safeguard policies, principles and requirements. The consultants will be required to prepare a LARAP and an ESIA or AMDAL study (that includes the PCR Management Plan) for the MRT investment as part of the Project's activity. The World Bank will provide support and oversight to Directorate of Transport, Bappenas to assure that there is adequate compliance and attention to safeguard issues. The ToRs for the consultant, related to the preparation of the environmental and social safeguard instruments, will need to be approved by the Bank. A draft ToRs for the feasibility study, including environmental and social aspects, has been prepared and reviewed by the Bank. Additionally, the ToRs for project preparation should also include the design and implementation of capacity building on environmental and social safeguards for Directorate of Transport, Bappenas and the City Government of Surabaya, with particular focus on modules and delivery methods relevant to MRT Systems. The Directorate of Transport, Bappenas has longstanding experience in coordinating the preparation of multilateral investments in the roads, rail and urban transport sectors - including with the World Bank. As such the Directorate is familiar with World Bank policies and procedures for environmental and social safeguards. Nonetheless, the Directorate will need to be supported to assure sufficient oversight and management of the consultants who are responsible for carrying out the environmental and social impact assessments of the Project (i.e. ESIA, or AMDAL study, including PCR Management), preparing the LARAP, as well as designing the capacity building on environmental and social safeguards. At a later stage, beyond the scope of this Project and under the implementation of the proposed first phase of the MRT investment, the City Government of Surabaya will be responsible for the implementation of the infrastructure investments and the application safeguards instruments produced under this Project. The City has some experiences with World Bank supported projects, such as the Surabaya Urban Development Project (SUDP), in early 2000s, and participation in PNPM-Urban, among other activities. Several key city officials already have the capacity and understanding to implement World Bank safeguards policies. However, COS capacity to manage environmental and social safeguards will need to be updated and tailored to the jssues that arise under the MRT investment. The types of capacity-building that will be required for COS should be developed during Project preparation. S. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders are: Directorate of Transport, Bappenas is the grant recipient and will be responsible for Project implementation. The consultants that carry out the Feasibility Study, and The City Government of Surabaya, who are the primary beneficiaries of the Project. Terms of Reference for the Feasibility Study and project preparation activities will stipulate the requirements to produce and fully disclose two key safeguard outputs (LARAP and ESIA or AMDAL - including PCR Management) that are designed to address potential environmental and social impacts, including involuntary resettlement. The ToRs for the consultant will also include consultation processes with the relevant stakeholders involved, and potential Project Affected Persons, that will need to be undertaken during the preparation of these two safeguards instruments. The City Government of Surabaya (COS) will work with the consultant of the Project in carrying out public consultations during the preparation of AMDAL and LARAP and in the overall preparation process of these two instruments. Implementation of these two instruments will be the responsibility of the COS. The COS will ensure that the institutional arrangements and financing to implement these two instruments will be in place, as planned. B. Disclosure Requirements Date Environmental Assessment/Audit/Mana2ement Plan/Other: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank Date of "in-country" disclosure Date of submission to lnfoShop lndi~enous Peoples Plan/Plannintz Framework: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank Date of "in-country" disclosure Date of submission to Info Shop Pest Mana~ement Plan: Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: N/A C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP 4.01 - Environment Assessment Does the project require a stand-alone EA (including Yes [] No [X] NIA [ ]. EMP) report? This TA project will not require a stand-alone ESIA and ESMP. Instead this TA project will finance the preparation of a stand-alone ESIA which also includes PCR Management Plan, with ESMP for a future investment project. If yes, then did the Regional Environment Unit or Sector N/A Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP N/A incorporated in the credit/loan? OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or Yes [ ] No [X] N/A [] degradation of critical natural habitats? If the project would result in significant conversion or The Project will take place in an degradation of other (non-critical) natural habitats, does urban setting where the the potential the project include mitigation measures acceptable to the degradation or conversion of natural Bank? habitats is unlikely. Nonetheless, OP/BP 4.04 has been triggered as a precautionary measure to ensure that as part of the ESIA adequately assesses the potential for the future proposed investment to impact natural habitats. OP 4.09 - Pest Mana2ement Does the EA adequately address the pest management Yes [] No [] N/A [X] issues? Is a separate PMP required? Yes [ ] No [] N/A [X] If yes, has the PMP been reviewed and approved by a N/A safeguards specialist or Sector Manager? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? OP/BP 4.11- Physical Cultural Resources Does the EA include adequate measures related to Yes [X] No[] N/A [ ]. cultural property? The ESIA that will be prepared for the future investment project will include a PCR Management plan. Does the credit/loan incorporate mechanisms to mitigate Yes, as above. the potential adverse impacts on physical cultural resources? OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Yes [ ] No[] N/A [X] Framework (as appropriate) been prepared in consultation with affected Indigenous Peoples? If yes, then did the Regional unit responsible for N/A safeguards or Sector Manager review the plan? If the whole project is designed to benefit IP, has the N/A design been reviewed and approved by the Regional Social Development Unit? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy Yes [ ] No [X] N/A[] framework/process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for N/A safeguards or Sector Manager review and approve the plan/policy framework/process framework? OP/BP 4.36 - Forests Has the sector-wide analysis of policy and institutional Yes [ ] No [] N/A [X] issues and constraints been carried out? Does the project design include satisfactory measures to N/A overcome these constraints? Does the project finance commercial harvesting, and if N/A so, does it include provisions for certification system? OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? Yes [ ] No [] N/A [X] Have the TORs as well as composition for the N/A independent Panel of Experts (POE) been reviewed and approved by the Bank? Has an Emergency Preparedness Plan (EPP) been N/A prepared and arrangements been made for public awareness and training? OP/BP 7.50- Pro.iects on International Waterways Have the other riparians been notified of the project? Yes [ ] No [ ] N/A [X] If the project falls under one of the exceptions to the N/A notification requirement, has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? What are the reasons for the exception? Please explain: N/A. Has the RVP approved such an exception? N/A OP/BP 7.60- Projects in Disputed Areas Has the memo conveying all pertinent information on the Yes [ ] No [] N/A [X] international aspects of the project, including the procedures to be followed, and the recommendations for dealing with the issue, been prepared Does the PAD/MOP include the standard disclaimer N/A referred to in the OP? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to Yes [] No [] N/A [X] the World Bank's lnfoshop? Have relevant documents been disclosed in-country in a N/A public place in a form and language that are understandable and accessible to project-aff~cted groups and local NGOs? All Safe2uard Policies Have satisfactory calendar, budget and clear institutional Yes [X] No [] N/A [] responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been Yes. The Project includes costs for included in the project cost? preparing the safeguard instruments as part of the Feasibility Study and costs for capacity building on safeguards in the project preparation component. Does the Monitoring and Evaluation system of the Yes. The Directorate of Transport, project include the monitoring of safeguard impacts and Bappenas will monitor and evaluate measures related to safeguard policies? the consultant in implementing the TOR to ensure that the activities related to the assessment and preparation of safeguard instruments is sufficiently implemented. Have satisfactory implementation arrangements been Yes. agreed with the borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Taimur Samad 3 February 2014 Approved by: ~4~~-{ Regional Safeguards Coordinator: -~4~~.2.,, ).-4 Comments: l \, Sector Manager: Nathan M. Belete Comments: