5. Report - Coastal Community EIA - Indonesia

7/30/2019 5. Report - Coastal Community EIA - Indonesia

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SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT

COASTAL COMMUNITY DEVELOPMENT

AND

FISHERIES RESOURCES MANAGEMENT PROJECT

IN THE

REPUBLIC OF INDONESIA

June 1997


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CURRENCY EQUIVALENTS(as of June 1997)

Currency Unit Rupiah (Rp)Rp1.00 = $0.00041

$1.00 = Rp2,426

The exhange rate of the rupiah is determined by Bank Indonesia under asystem of managed float.

ABBREVIATIONS

DGF - Directorate General of FisheriesEIA - Environmental Impact AssessmentGRT - Gross TonsIEE - Initial Environmental ExaminationMCS - Monitoring, Control and SurveillanceMPA - Marine Protected AreaPCO - Project Coordinating OfficePIU - Project Implementation UnitsREA - Resource and Ecological AssessmentSEA - Socioeconomic Assessment

T - Tons

NOTES

In this Report, the symbol $ refers to the US dollar.


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CONTENTS

Page

Map ii

A. Introduction 1

B. Description of the Project 1

C. Description of the Environment 4

1. Prigi, East Java 42. Muncar 53. Lombok, Nusa Tenggara Barat 54. Tegal Sari, Tegal, Central Java 5

5. Bengkalis Island, Riau 66. Socioeconomic Profile of Coastal

Communities at the Project Site 7

D. Anticipated Environmental Impacts and Mitigation Measures 8

1. Beneficial Impacts 92. Potential Adverse Impacts and Mitigation Measures 11

E. Alternatives 14

F. Cost-Benefit Analysis 15

G. Institutional Requirements and Environmental Monitoring Plan 16

1. Institutional Requirements 162. Monitoring Program 16

H. Public Involvement 17

I. Conclusions 18


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A. Introduction

1. This Report summarizes the environmental impact assessment (EIA) of theCoastal Community Development and Fisheries Resources Management Project in Indonesia.The EIA and this summary EIA were prepared as part of the Projects feasibility study by PacificRim Innovation and Management Exponents, Inc. (PRIMEX) in cooperation with the

Directorate-General of Fisheries (DGF), the Dinas Perikananat the Project sites, and the PusatPengembangan Agribisnis (PPA), Jakarta.

2. The Project was initially categorized by the Asian Development Bank as anenvironmental category B project requiring an initial environmental examination (IEE), whichwas undertaken during the early stages of the feasibility study. Subsequently, the Bankrequired that a full EIA be done based on the IEE findings, which indicated the potential formajor significant environmental impacts associated with construction of two breakwaters anddredging at two harbors.

B. Description of the Project

3. The Project arises from the need to address key issues confronting theIndonesian fisheries and coastal resource sector, and respond to Governments request forassistance in meeting objectives, strategies, and targets for the sector as embodied in the SixthFive-Year Plan (REPELITA VI). The two most critical issues are depletion of coastal resourcesand the pervasive poverty and social disadvantages of coastal communities. These two issuesare closely interlinked in a vicious cycle whereby poverty drives the coastal communities toincrease fishing pressure that, in turn, leads to depletion of coastal fisheries resources.Continuous deterioration of coastal resources results in reduced fish catch and income offishers, thus contributing to increased poverty in the coastal communities and perpetuation ofthe cycle. To break the cycle requires introducing and institutionalizing coastal resourceconservation and management measures to ensure resource sustainability over the long term,and the introduction of supplementary and alternative livelihood initiatives to raise income levels

and improve the living conditions of coastal dwellers.

4. The primary objectives of the Project include (i) promoting conservation andsustainable management of coastal fisheries resources; and (ii) reducing poverty in coastalareas by providing opportunities for increasing incomes and living standards of coastalcommunities. The Project scope includes activities intended to (i) control fishing efforts withinenvironmental limits through the establishment of a coastal fisheries licensing system and theadoption of community-based coastal resources management measures; (ii) increase incomesof coastal fishers and facilitate their access to alternative livelihood or income-augmentingopportunities; (iii) improve the living conditions of selected coastal communities through theprovision of necessary social infrastructure; (iv) rehabilitate facilities at selected fish landingcenters to improve environmental and sanitary conditions as well as product quality; and (v)

strengthen the capabilities of coastal communities and National Government agencies and localgovernment agencies concerned with fisheries resource management and conservation.

5. The Project will cover four sites, namely (i) Prigi and Muncar in East Java, adeep ocean area; (ii) Lombok in Nusa Tenggara Barat, a coral reef island; (iii) Tegal Sari inCentral Java, a densely populated and heavily fished, shallow coastal area; and (iv) BengkalisIsland in Riau, an island with significant mangrove forests. It will comprise four components: (i)coastal fisheries resource management; (ii) community development and poverty reduction; (iii)


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environmental improvement of small-scale fish landing centers; and (iv) institutionalstrengthening and support services.

6. The coastal fisheries resource management component aims to rationalize andregulate the use of coastal fisheries resources, and conserve fish habitats at selected Projectareas with the active participation of coastal communities. It will also address the fisheries

management needs of the country through the enhancement of fisheries information, licensingand regulation, and community-based law enforcement, referred to as coastal monitoring,control, and surveillance (MCS). The major activities to be carried out under the Componentare:

(i) conduct of participatory resource and ecological assessment (REA) andsocioeconomic assessment (SEA) at the identified Project sites to collectessential benchmark information on the sites which will provide the basis for thepreparation of Coastal Resource Management (CRM) plans;

(ii) establishment of a computerized resource and ecological data base at theProject sites, consisting of data collected through the resource and ecological

assessments and the socioeconomic assessments at the Project bays as well asfisheries statistical data collected at fish landing sites, and establishing oflinkages between these data bases and the DGF's central data base(SIMKANNAS);

(iii) design, development, and conduct of an intensive public information andeducation program to create or enhance public awareness of the value andbenefits of coastal and fisheries resource management;

(iv) drafting and finalization of CRM plans for the priority Project sites using datagathered through (ii) above, and with the active involvement of the variousstakeholders; and

(v) implementation of CRM interventions, including resource management measuressuch as mangrove reforestation, establishment of marine/fish sanctuaries andartificial reefs, and erosion control; community-based coastal fisheriesmonitoring, control, and surveillance; and fishing effort diversification and credit-supported alternative livelihood activities undertaken as part of the Project'sCommunity Development and Poverty Reduction Component.

7. The community development and poverty reduction component will promote non-fishing income generating activities and improve the existing social infrastructure at the Projectsites. It aims to wean coastal fishers away from fishing activities, and consequently reducedependence and pressure on the coastal fish resources. Initially, community organizing and

social preparation activities will organize coastal fisheries in the target communities into self-reliant cooperatives and associations to prepare them for subsequent training on variousProject themes, including (i) capacity building, cooperation, and value formation; (ii) creditaccess, management, and utilization; (iii) microenterprise and livelihood development andmanagement; and (iii) savings mobilization and capital formation. Social preparation activitieswill include (i) poverty mapping, perception, and problem analysis; (ii) technical service andadvice, and skills training; (iii) linking organized fishers with formal sources of credit andproviding savings mobilization; and (iv) introducing and implementing microenterprise and


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income diversification projects in the coastal communities. Social preparation will be acontinuous process undertaken during and following Project implementation.

8. After the initial social preparation, local government agencies in collaborationwith local community organizations, agricultural extension services centers, and extensionagents will (i) assist organized cooperatives and associations in identifying, developing, and

implementing microenterprises and alternative livelihood projects; (ii) provide fishers withextensive technical support services; (iii) promote group savings mobilization; (iv) link potentialfisher-borrowers to existing formal microcredit schemes; and (v) provide marketing assistance.The Project will also provide selected fishing villages with better access to social facilities andservices through (i) improvement of about five kilometers of village-to-market roads at eachsite; (ii) installation of clean water supply facilities; (iii) construction of drainage systems, publictoilets, waste disposal systems, and meeting halls; (iv) preparation and linkage of communitiesfor effective participation in existing housing credit schemes; and (v) provision of mobile healthunits.

9. The environmental improvement of small-scale fish landing centers componentwill upgrade and rehabilitate facilities at selected fish landing sites to (i) improve sanitary and

environmental conditions; (ii) enhance the quality and value of fish production; and (iii) reducephysical and quality losses. The scope of improvement work at each site will vary depending onthe actual conditions and requirements at each fish landing center.

10. At Prigi, clean water supplies for the fish landing will be installed, navigationalequipment for the harbor fitted, MCS facilities provided. A two-arm breakwater is to beconstructed, and a short wharf and auction hall access will be built. About 120,000 cubic metersof soil will be dredged to attain sufficient water depth at the harbor basin and access channel.The existing jetty will be fully renovated. Fish handling and small-scale processing facilities(clean water supply, paved floor, sanitary containers, and chilled storage) will be provided atMuncar. These facilities will reduce fish production losses from spoilage and minimizeenvironmental pollution.

11. At Tegal Sari, the entire harbor area requires proper drainage and a wastedisposal system. Tanks, filters, and pumps will be installed to provide ample clean water. Thefish drying areas will be paved, clean water supplied, and hygienic rocks or permanent solardriers provided to improve sanitary and environmental conditions. The existing auction hall willbe rehabilitated and provided with the necessary equipment to reduce fish losses. The harborbasin will be reshaped, dredged, and deepened, and a new deeper entrance will be cut throughthe beach into the sea. A breakwater will be installed. The fish landing wharf and landing placearea require restructuring to provide a level access from pier to market, and berthage alongsidethe wharf. At Bengkalis, existing clean water supplies will be expanded and additional supplysystems installed. Sanitary containers, a small-scale ice plant and cold storage, and a cleanprocessing area will be provided. A wooden jetty will be constructed.

12. The institutional strengthening and support services component will equip theexecuting, implementing, and participating agencies, as well as the participating communityorganizations, with the skills required for Project activities and the attitudes necessary toimplement new concepts and programs. The main interventions will include training ofconcerned personnel in these various agencies and provision of technical assistance andlogistical support to DGF, Dinas Perikanan, and local community organizations in the followingareas, among others: (i) preparation and implementation of CRM plans; (ii) streamlining or


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improvement of the fisheries statistics/data collection and management system at theprovincial/district level; and (iii) stricter enforcement of fisheries regulations. The Project willprovide consulting services to assist the Executing Agency and implementing agencies toestablish an effective project management system and to strengthen overall institutionalcapability and efficiency.

13. The Project will be implemented over six years (1998-2003) at a cost ofapproximately $75 million equivalent, and will consist of two phases. The first phase, covering aperiod of one to two years, will include resource assessment activities, detailed socioeconomicsurveys, market analysis, community organizing and social preparation, cooperativedevelopment, information and education campaigns, preparation of site-specific CRM plans,preparation and development of specific alternative livelihood and microenterprise projects,detailed engineering design, and initial institutional strengthening activities. The second phasewill include the implementation of site-specific CRM plans, livelihood and income-generatingprograms, social and fisheries infrastructure improvement activities, and institutionalstrengthening. DGF will be the Executing Agency.

C. Description of the Environment

1. Prigi, East Java

14. Prigi Bay faces the Indian Ocean along the south coast of Java. Five fishingvillages are located along the bay. The coast is a narrow flat area surrounded by hills anddominated by fertile and productive rice fields. The most common perennial vegetation iscoconut. Bird species common to Indonesia comprise most of the observed fauna.Groundwater along the coast is fresh, and there is no reported saltwater intrusion. Water for theexisting fish port is presently obtained from groundwater. Two rivers flow into Prigi Bay,Cengkrang River, which discharges into the west of the bay, and Bendo River, whichdischarges into the east of the bay. Neither river is particularly large, but Cengkrang River has amuch larger drainage area (80 km

2) compared to Bendo River (7.5 km

2). The mouth of Bendo

River, located near the fish port, serves as a boat shelter.

15. Coastal currents in the bay are not very strong. The longshore current goes backand forth along the coast, with velocities of 0.30 to 0.50 meters per second. Overall, thecoastline is stable because of the supply of sand from the rivers and because longshoresediment transport moves back and forth along the coast, creating a pocket beach. Waterquality in the bay is generally within the standards set by the Government.

16. There are no outstanding biological resources in the area. Mangroves are notfound around Prigi Bay. No coral reefs or sea grass beds are known to occur, though accountsfrom local fishermen indicate the possible presence of a dead reef near the mouth of Prigi Bay.Prigis coastal fisheries is typical of Southeast Java. Exploitation of small pelagic fish has

increased steadily during the past 20 years with the introduction of purse seiners, and there areindications that the purse seine fishery is approaching maximum capacity. Conversely, somespecies, such as tuna, are underexploited. Catches have dropped steadily from 8,040 tons (t) in1993 to 4,483 t in 1995, and the total number of fishers dropped from 6,040 in 1994 to 5,925 in1995. Fishing is a part-time, seasonal activity for most, with only 1,185 full-time fishers in 1995.

At present, less than 20 percent of the catch is sold fresh, with the remainder sold as fishmeal,boiled (pindang), or sun-dried. The value of the fish catch could rise by 10-50 percent throughimproved handling procedures and improved sanitary conditions at the fish landing areas.


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2. Muncar

17. Muncar is a large fishing village located in Pangpang Bay (in the sub-district ofMuncar) at the southern end of Bali Strait. The bay is naturally protected from strong waves andcurrents. It is shallow and has several dead coral reefs at its mouth. The coastline is 13 kmlong, of which some 5.5 km are occupied by the fish landing area. With over 10,000 fishermen

registered in 1994 and a total population of 115,630, Muncar is the largest fishing communityon the east coast of Java. Muncar has grown rapidly during the past 20 years into a fishprocessing center.

18. The main fish resource is the Bali Strait Indian oil sardine (Sardinella lemuru),which is caught by purse seiners. This is the only single-species fishery in Indonesia and isseasonal, with peak catches occurring from September to March. The major problem faced bythe Muncar purse seine fleet is the quality of the fish landed, over 75 percent of which isunsuitable for canning due to poor handling and storage on the vessels. Fish landing andsupport facilities are also inadequate.

3. Lombok, Nusa Tenggara Barat

19. The coastline of East Lombok is 220 km long, of which some 126 km belong tothe Keruak sub-district. About 60 km (30 percent) of the coastline is cliff and the rest is slopingland. Keruak has excellent potential for brackishwater fisheries, and covers an area of 605 ha.It also contains a 44-ha protected area.

20. The bed of the Bay is sloping, with an average depth of 10 m. There is anabundance of reefs in the water around the site, with potential for fish, shrimp, and seaweedculture. Fishers in the area have switched successfully from fish capture to seaweed culture.The coastal waters cover an area of 4,400 km

2, of which 32 km

2is reef area. Of the nearshore

waters, 800 ha are used for seaweed culture, 90 ha for pearl culture, and 40 ha for seacucumber culture. Fish production in 1994 was 12,333 t, consisting of five major species.

21. The number of fishers in Keruak has grown from 4,564 in 1991 to 10,234 in1995, while marine fish landings have dropped from 14,944 t in 1991 to only 7,363 t in 1995.The provincial government is formulating an integrated area development plan for the EastLombok district. The plan will encourage more private sector investment in the area, particularlyin fish processing and marketing, as well as in the tourism business.

4. Tegal Sari, Tegal, Central Java

22. Tegal Sari is a riverside landing adjacent to the present commercial port atTegal, and serves small fishers operating along the northern coast of Java. Major land uses inthe area include settlements and brackishwater shrimp ponds (tambak) with no remnant of

natural mangrove forest. Mangrove trees have been planted along the riverbanks and dikes ofthe shrimp ponds through a regreening program. The coastal vegetation is predominantlygrass, remnant mangrove, and coconut. Floral and faunal resources along the Tegal Sari coastare not considered to be of special conservation value.

23. The shoreline is affected by west to east currents during the wet season(November to February) and east to west currents during the dry season (April to August).


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Longshore sand transport is blocked by the breakwater at the Tegal commercial port, resultingin accumulation of sand deposits at the commercial port entrance.

24. The main drainage in the area is the Sibelis River. Its downstream segment isbeing used as a port basin for the Tegal Sari fish port. The mouth of the river serves asentrance to the fish port, and is located just beside the west arm of the breakwater of the Tegal

commercial port. The water in the river along the shoreside of the Tegal Sari fish port is heavilypolluted by wastes coming from the fish port itself and from households located along theriverbank upstream of the fish port. Flushing of the harbor basin is impeded by the flat rivergradient and the narrowing of the channel outlet due to sand and silt deposition. Siltation of theriver has reduced its flow, which contributes to twice-annual flooding on aveerage of the banksand surrounding settlements. The municipality of Tegal does not have an abundant supply offreshwater, and relies on supplies from the neighboring district of Brebes. Groundwater in thearea is saline, and the extent of saline intrusion is believed to extend up to 1.5 km inland.

25. There are approximately 8,000 fishers in Tegal. The fishing communities in theTegal area have experienced dramatic changes in the patterns of resource use over the past20 years. The introduction of the purse seine in the mid-1970s catalyzed increased effort and

efficiency. Purse seiners from Tegal have been making longer trips to Kalimantan and Sulawesias pelagic resources close to Java have become depleted. Landings of small pelagics at theTegal Sari site have dropped dramatically from 4,898 t in 1992 to 1,788 t in 1995 due todeclining facilities. Only boats of less than 15 gross tons (grt) land at the Tegal Sari fish port.The fish landing area is congested and the facilities are very poor. The landing and servicewharf, water supply, and other support facilities are inadequate. The basin is no longer able toaccommodate the present 353 mechanized fishing boats of up to 15 grt. Nonetheless, the localgovernment and Dinas Perikananplan to develop Tegal Sari as the base for all local fishingvessels under 30 grt. This would leave the main commercial harbor free for development as acontainer cargo port, with only the larger purse seiners still unloading fish there.

5. Bengkalis Island, Riau

26. Bengkalis Island is a flat plain separated from Sumatra by Bengkalis Strait.About 95 percent of the Bengkalis is covered in tropical lowland forest and swamps. Many smallrivers empty into the coastal waters. The Bangkalis subdistrict is included in Subregion I, whichis devoted to the production of export quality agricultural commodities, horticulture, food crops,animal husbandry, and shrimp culture. Although extensive mangrove forests remain on theisland, the reduction in mangrove forest cover has been severe. Over 50 percent of the Class 1mangrove area has been lost since 1975, and there is a need to reforest some 3,000 ha offormer mangrove land. Part of the coastal area is used for brackishwater shrimp ponds. Coastaldeforestation for fuelwood and other uses has destabilized shorelines on Bengkalis andneighboring islands, and increased erosion on exposed coasts. In some areas, seawalls needto be constructed to stop shoreline loss of more than one meter per year.

27. Fishers operate mostly in the coastal zone, using gill nets and stationary gear,indicative of the low socioeconomic status of the area. Fishing in cooperation with an agent orintermediary is common practice. The operating cost for each fishing trip is shared equally, buttwo-thirds of the proceeds from fish sales go to the middleman. Fish catch in offshore waters islimited because of the lack of capital and equipment. In the nearshore waters, there is evidencethat the catch per unit effort has declined from an average of 10 kg/fisher/day in 1991 to half


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that amount in 1995. Because of overfishing, there has also been a shift in catch compositionfrom economically important species to less valuable ones.

6. Socioeconomic Profile of Coastal Communities at the Project Sites

28. Households in the coastal areas have a relatively large family size, with 66

percent of the socioeconomic survey respondents reporting from 5-8 members. The averagehousehold size for all sites was six. The male-to-female ratio in the households is 47:53 for allsites. By age, 47 percent of the population belongs to the working age group, ranging from 20-64 years old.

29. For all sites, 44 percent of the fishing households could be categorized as poor,earning a total income equal to or lower than the poverty threshold income of aboutRp384,000/capita/yr. By site, the largest proportion (70 percent) of poor respondents wasreported in Lombok, while the least number of households in the same category was reported inPrigi.

30. More than 90 percent of the population at the Project sites have had formal

education. The level of education, however, is relatively low, with more women (20 percent)having reached secondary education levels than men (nine percent). For all sites, therespondents had an average of six years of formal education.

31. Of the respondents, 56 percent reported fishing as their primary source ofincome; 26 percent are fish processors while 12 percent are fish traders. Other primaryoccupations are fishpond operation, and seaweed farming and processing. Except for Lombok,fishing is the primary occupation for most of the respondents in the selected sites. For Lombok,35 percent reported seaweed farming followed by fish processing. The majority, or 72 percent,of the women respondents reported fish processing as their main source of income, followed by24 percent who are fish traders. To augment income from their primary occupation, some familymembers are engaged in other income-generating activities, including handicrafts, tailoring,

crop farming, employment in government agencies or in real estate marketing, and working ashired laborers.

32. Fishing households spend a total of about 18 person-hours in economic activitiesand 4.5 hours in domestic activities daily. Among the fish traders, daily economic and domesticactivities require a total of 16 hours and 8.5 hours from husband and wife, respectively. The fishprocessing households spend the longest time in economic activities, amounting to an averageof 21 hours, with the husband, wife, and son involved in the activity. The domestic activities,therefore, necessitate the involvement of the sons and daughters, amounting to a total ofalmost 7 hours. In general, household heads spend longer hours engaged in economicactivities than their wives. On the other hand, women spend a longer time in domestic activitiesthan men, except for fish processing, which actively involves the women.

33. Based on these figures, fishing households would have at least 10 slack hourseach day for additional economic activities. While male fish traders and processors spendabout 12-14 hours per day in carrying out business-related activities, there is considerablepotential for women to engage in microenterprise activities, especially those which may beundertaken within the household premises (e.g., seaweed candy making, terasiand kerupukmaking).


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34. At all the sites, 79 percent of the fishers have boats of their own; 14 percentreported owning two boats, while 11 percent had no boat. Except for Bengkalis, the mostcommon fishing gear used at all sites is the purse seine. In Bengkalis, the longline is the mostcommonly used gear.

35. On average, fishers at the four sites go fishing for a total of 10.6 months a year.

The peak fishing season lasts 5.3 months, the lean season 2.7 months, and the transitionperiod 2.6 months. In Lombok, fishers fish only during the peak season, which lasts for sevenmonths. Fishers in the three other sites fish almost the whole year round. Almost all (99percent) of the fish caught by fishers is sold, with one percent going to the crew member and anegligible amount consumed at home.

36. Of the respondents, 38 percent reported having availed of credit during the last12 months. Among those who availed of credit, 60 percent obtained it from formal sources, andthe rest accessed loans from informal sources.

D. Anticipated Environmental Impacts and Mitigation Measures

37. Overall, the Project is expected to yield significant environmental benefits interms of resource conservation, pollution abatement, and improvement of public health. Of thefour Project components, the coastal fisheries resource management component and theinstitutional strengthening and support service component are expected to generate onlybeneficial impacts. The community development and poverty reduction component will generatemostly beneficial impacts, and the potential adverse impacts from microenterprises andalternative livelihood projects are expected to be minor. The environmental improvement ofsmall-scale fish landing centers component also will mostly generate beneficial impacts. Theexception will be the construction of breakwaters and dredging of harbors, which are expectedto have moderate and, in the case of dredging, short-term impacts. The discussion belowsummarizes both the expected beneficial and adverse impacts related to Project design,location, and implementation.

1. Beneficial Impacts

a. Impacts of CRM Activities

38. The adoption of CRM interventions, such as mangrove reforestation, marine/fishsanctuaries, artificial reef establishment, and erosion control are expected to result in fish stockrejuvenation and the rehabilitation of coastal habitats. This in turn is expected to promoteincreased fish availability and consequently increased fish catches and higher incomes tofisherfolk. The implementation of regulatory and control measures, such as the strictenforcement of a licensing system for small-scale fisheries, is also likely to result, over time, inincreased fish stock and catches.

39. Two areas in East Lombok are proposed as marine protected areas (MPAs) toreduce fishing effort in critical habitats and promote investments in ecotourism. Both areas havegood coral reefs that are being threatened by blast fishing and drift gill-netting. The Project willprovide assistance in the development of MPA management plans, the identification andsupport of sustainable livelihood alternatives associated with MPAs, and the installation ofmoorings for dive boats to avoid anchor damage on the coral reefs. The establishment of MPAswill protect healthy habitats to sustain their productivity, replenish fish stocks in the vicinity, and


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increase biodiversity. Fish production in the MPAs is expected to increase from the presentaverage yield of 5 t/km

2in Year 1 to 11 t/km

2in Year 6, reaching a maximum of 20 t/km

2in year

13. Incremental fish production is calculated at 2.595 t in Year 6 and 6.366 t in year 20.

40. A total of 3,156 ha of land formerly under mangrove forest is targeted forreplanting over the six-year implementation period. Allowing for a 75 percent reforestation

efficiency rate, approximately 2,367 ha are projected to be effectively reforested with a totalvalue of about Rp272 million at full development. Incremental benefits derived from mangrovereforestation and management are estimated at 1,483 ha of mangrove area saved fromdestruction as a result of the Project, with substantial but unquantified beneficial impacts oncoastal fauna productivity due to improved coastal habitat.

41. Artificial reefs will be established in Lombok. Artificial reefs have proven effectiveelsewhere in creating new habitat for marine life where none existed before, or where thenatural habitat has been destroyed. Through the artificial reefs, regeneration of fish populationsis expected to occur over a targeted area of 8 hectares. Fish production is expected to increasein the target area from the present average yield of 5 t/km

2to 11 t/km

2in year 7. Maximum fish

production (at 20 t/km2) that can be sustained with proper management is expected to be

attained in year 13. Incremental fish production is calculated at 0.725 t in year 6, increasing to1.566 t by year 20.

b. Impacts of Livelihood Enterprise Development

42. The Project will provide the coastal communities with better access to socialfacilities, including (i) improvement of five km of village roads in each site or a total of 20 km forthe four sites; (ii) provision of a mobile health clinic in each site; (iii) provision of freshwatersupply; (iv) kampong improvement, including the construction of 9.5 km of drainage system,120 units of public toilets, and 120 units of waste disposal systems at all the target sites; and (v)provision of other community facilities, such as community meeting halls. These activities willimprove sanitation and hygiene, resulting in better overall environmental conditions in the

villages. Improvement of training facilities will lead to upgrading of skills and avoidance ofundesirable fishing practices.

c. Impacts of Institutional Strengthening Activities

43. The establishment of the Project Implementation Units and of inter-agencycooperative mechanisms is expected to enhance the capability of local governments to addressthe complexity of fisheries management issues through a standardized implementationmechanism and strategy, the principles of which can be replicated elsewhere. The institutionalcapability of fisherfolk associations and cooperatives is expected to be strengthened throughshort-term training and hands-on experience in a wide variety of areas, including fisheriesplanning and management, data collection and analysis, financial planning, accounting,

monitoring, and evaluation.

44. The organization of fisherfolk/fishfarmers into associations or cooperatives willempower them by ensuring their representation and participation in sustainable fisheriesdevelopment, and transform them into responsible resource managers and users. It will alsoimprove their access to credit for alternative livelihood or supplemental income-generatingactivities, enable them to increase their incomes, and equip them with skills in project


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management and entrepreneurship in non-fishing occupations, thus widening their financialoptions and weaning them from capture fisheries.

45. A strategy adopted by the Project for the microenterprise developmentsubcomponent targets women as major investors in alternative livelihood/microenterpriseprojects. Because women generally manage and control household funds, including the portion

set aside for investment in microenterprises, the Project will train women in financial and creditmanagement to improve their capacity and capability to manage household and businessfunds. Women will also be assisted in gaining access to existing Government-executedmicroenterprise credit schemes or provided with direct assistance for livelihood activitiesthrough the Project's inputs assistance program. The Project will also enable the upgrading ofsocial infrastructure facilities and services, such as housing improvement and the provision ofclean domestic water supply, waste disposal, and sewage systems, which will mean improvedworking conditions for women who usually engage in productive economic activities in theconfines of their homes. Overall, the Project has significant gender-and-development objectivesof empowering women through organization, training, credit, and livelihood support. As womenare considered important stakeholders, the Project interventions were designed to enable thewomen to become full participants in, and beneficiaries of, the Project.

d. Impacts of Physical Infrastructure Improvement

46. Physical infrastructure improvements will initially benefit boat owners and fishmerchants, and eventually trickle down for the betterment of all fishery. Consumers areexpected to benefit from greatly reduced incidences of food poisoning and higher protein valueof fish products. In addition, with the installation of adequate water supply and sanitary facilities,the proposed improvements at the Tegal Sari and Prigi fish ports are expected to result inimproved handling, improved product quality, and reduced waste, with substantial benefits to berealized in terms of increased economic returns, improved public health, and reduced pressureon coastal fisheries resources.

47. Fish port improvements are expected to benefit the local economy and enablesmaller fishermen to exploit the Exclusive Economic Zone, with the result that the fish catch,which now depends heavily on nearshore resources, would eventually be stabilized. However,the Project itself will not support credit programs for the purchase of larger vessels. The MCScomponent of the Project is meant as a safeguard to ensure that fisheries developmentactivities, including fish port infrastructure, do not lead to an unwarranted increase in fishingpressure.

48. Pollutants associated with port operations at both sites originate from vesselbilge water, oil, and grease coming mostly from vessels afloat in the harbor, domesticwastewater, and market area washwater. These sources of pollution are not being properlyhandled. The Project is not expected to appreciably add to the pollution load. Rather, it will

provide support for pollution treatment and abatement. This will include proper handling of bilgewater through portside collection and treatment and enforcement of restrictions againstdumping bilge waste in the harbor. Structural and operational measures will also beimplemented to control the discharge and disposal of oil and grease. Wastewater treatmentsystems will be provided at both Tegal Sari and Prigi fish ports. By providing wastemanagement systems, the Project will significantly improve the present condition in the two fishports, especially at Tegal Sari where the harbor basin is heavily polluted.


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2. Potential Adverse Impacts and Mitigation Measures

a. Impacts of Breakwater Construction on Sediment Transport andBeaches

49. Breakwaters generally trap sand on the updrift side of the shoreline, causing that

side of the beach to prograde and the downdrift side to erode. At Tegal Sari, the predominantdirection of the longshore drift is from east to west. The existing breakwater of the Tegalcommercial port has already caused sand to build-up on the east side of the coast. Sandaccumulation behind the east face of the existing breakwater has necessitated the lengtheningof the arms to avoid choking off the commercial port accessway entrance. No recreationalbeaches or other beneficial human use activities that could be affected by beach erosion arelocated on the downdrift (west) side of the commercial port breakwater, nor are there anyvaluable ecological resources, so the erosion of the beach on that side has not caused adverseimpacts. The proposed breakwater for the fish port at Tegal Sari will be located west of thepresent commercial port breakwater on the downdrift side of the present breakwater, and so isnot expected to create additional beach erosion or siltation of the Tegal Sari harbor entrance.

50. For the Prigi fish port, improper design and construction of the proposedbreakwater would significantly affect longshore sediment transport along the coast, adverselyaffecting recreational beaches located on the right side of the port. Feasibility-level design ofthe breakwater has adopted an orientation that is not perpendicular to the shore, but ratherincorporates a curved alignment, thereby allowing sand to be transported past the structure andminimizing blockage of sediment transport.

51. During the detailed design of both breakwater structures, the longshore currents,wave conditions, and sediment transport patterns will be further studied as part of a follow-onenvironmental assessment focused on breakwater construction. The results will be used torefine the designs so as to ensure that significant environmental impacts are avoided.

b. Impacts of Dredging on Water Quality and Beneficial Uses

52. At Tegal Sari, dredging activities will involve cutting into the Sibelis riverbed,portions of existing prawn farms, and the nearshore seabed (for the access channel). Dredgedspoils typically will contain a combination of sand and gravel, suspended solids from clay andsilt materials, and organic detritus dredged from the silted river. Since the Sibelis River does notdrain an area of high industrial activity, the dredged materials are not expected to containsignificant levels of industrial pollutants.

53. Impacts on water quality associated with the proposed dredging could affect fishand other marine organisms as well as shrimp ponds. To minimize these potential impacts,dredging activities will be carried out during the eastern monsoon season when coastal watersare calm and the direction of sediment transport is away from human use areas, therebyconfining impacts to the immediate dredging area. Additionally, the water in the port area isalready quite turbid, and dredging is not expected to cause significant additional deterioration inwater quality. Silt curtains will be provided around sites that are used to pump seawater toprawn ponds. Spoils will be deposited in a low lying area surrounded by a dike. Rip-rapembankments, serving as sediment traps, will be provided around the reclamation sites prior tofilling to contain the dredged-up material and prevent their escape to the surrounding water.


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54. Some of the dredging spoils will be used to reclaim a five ha area west of theproposed breakwater, part of which is currently used for prawn farming. Use rights to theaffected prawn farms are held by five farmers. Compensation will be provided by the localgovernment, and funds for this purpose have been included in the Project budget. The overallimpact of dredging operations at Tegal Sari, therefore, is expected to be moderate, short-term,and confined.

55. Associated with the dredging operations at Tegal Sari, a diversion is proposedwhich would shorten the distance of Sibelis River effluent discharging to the sea. This willalleviate flooding problems now experienced at the fish port and help to decrease the currentaccumulation of pollutants by diluting the river discharge. The diversion channel will occupy 4.7ha of leased land. Compensation will be provided by the local government, and funds for thispurpose have been included in the Project budget. The spoils will be used to increase theelevation of land surrounding the fish landing site to help alleviate past flooding problems. Thespoils also may be used to strengthen and heighten dikes along the adjacent shrimp ponds.

56. At Prigi, dredging operations for the harbor basin will involve cutting into theshallow seabed. Based on geotechnical findings, the dredged material is expected to contain

mostly sand and silt. The substrate has a relatively low silt clay content, and so sedimentdispersal will be minimized. To minimize potential water turbidity impacts at the recreationalbeaches, dredging will be coordinated with construction of the breakwater so that the latter actsas a protective embankment to contain the turbidity. Other mitigation measures to be taken atPrigi are similar to those described above for Tegal Sari.

57. The excavation and dredging during construction of the seawall in Bengkalis willalso cause short-term, localized, and minor impacts on water quality. Similar environmentalprecautions and mitigation measures will be taken at Bengkalis.

58. None of the dredging operations will affect coral reefs or other environmentallysensitive areas.

c. Freshwater Supply

59. The improvement of the port facilities will create greater demands for water. AtTegal Sari, the present municipal water system is limited in capacity and cannot guaranteewater requirements of the fish port. Because of the limited water supply, water for cleaning thefish port auction floor is currently taken from the nearby polluted river. It may not be feasible inthe short term to expand the municipal water system or tap groundwater to provide for the waterneeds of the fish port. Therefore, during the detailed engineering design of the fish portimprovements the Project will examine the use of seawater for the ports washwaterrequirements. This will involve pumping of seawater from an offshore intake point. The cost ofproviding clean water supply systems is included in the budget for the rehabilitation of fish

landing facilities.

60. At Prigi, groundwater is pumped to a storage tank, for use as washwater. Theused washwater is discharged into a nearby swamp, which serves as a stabilization pond.There is a danger that with greater demand for more groundwater to service the Prigi marketarea, the discharged wastewater could more easily percolate into the aquifer and contaminatethe groundwater. At Prigi, groundwater may need to be supplemented by the development ofsuitable surface water sources. Detailed hydrological studies will be carried out to identify


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appropriate alternative water sources during the detailed engineering design of the fish portimprovements.

d. Impacts on Biological Resources

61. The use of artificial reefs as fish habitat could be abused and cause

overexploitation of already depleted fish stocks. To prevent this, the deployment of artificialreefs will be made on a site-by-site basis, and they will only be deployed in such situationswhere it is unlikely that they would be used as fish attractors, rather than for habitatenhancement. Where it is determined that artificial reefs will be beneficial, they will beestablished at some distance from existing healthy coral reefs in the area so as not to draw fishaway from these ecosystems.

62. The Project strategy to shift effort away from overexploited small pelagics to theunderutilized resources through fishing effort diversification could lead to furtheroverexploitation of already overfished species. To prevent this unintended negative effect, thefollowing steps will be taken: (i) local fishers will first be required to comply with restrictionsagainst replacement of converted purse seine vessels; (ii) a licensing system will be established

to regulate the number of vessels operating in coastal waters; and (iii) monitoring andenhancement efforts will be stepped up in coastal fishing grounds. Specifically, at each sitewhere shifts in fishing effort are proposed, local fishers must agree to restrictions to additionalvessels to replace converted seiners. In addition, the DGF and the Dinas Perikanan willestablish a fleet management system that will prevent licenses being issued for new vessels toreplace converted boats. The Project Implementation Unit will be responsible for monitoring thefleet situation in cooperation with the Dinas Perikanan.

e. Potential Impacts from Microenterprises

63. Microenterprises involving processing of fish may increase the demand forfuelwood and thereby increase pressure on nearby forests. To prevent this from taking place,

an information, education, and communication campaign will be conducted among the localcommunities to regulate the cutting of fuelwood for use in various fish processing activities.Communities using fuelwood will be required to replant mangrove and bamboo trees toreplenish the stock, and the indiscriminate cutting of trees will be monitored and controlled.

64. Microenterprises, by their very nature, will be small scale and produce minor ifany significant impacts. Nonetheless, the cumulative impacts of many small enterprises is ofconcern, and so environmental acceptability has been included in the selection criteria forproposed microenterprises. Initial environmental examinations will be done for each proposedmicroenterprise during the design stage.

f. Social Impacts

65. The establishment of seabass cages in the river or strait at Bengkalis could leadto conflicts in resource use if not properly regulated. To prevent this, a local zonal developmentplan will first be prepared prior to the establishment of fish cages in the river or strait, which willallocate specific sites for mariculture. The communities will then be informed about the detailsand requirements of the zonal development plan. The operations will be monitored to ensurethat these small-scale operations do not contribute to local increases in organic pollutantsdemand due to improper feeding and sanitation techniques.


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66. Harbor improvements could attract fishermen from outside the area, thusincreasing competition. With the capacity to accommodate bigger vessels, it will be importantfor the Project to ensure that the rights of the small fishermen are protected, e.g., by zoning theharbor, in the face of increased competition from larger operators. At Tegal Sari, it is notexpected that fish port improvements there will lead to the deployment or arrival of largervessels. The Central Java provincial fisheries office has adopted a policy to the effect that only

small boats (


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Project ComponentForeign

ExchangeLocal

CurrencyTotalCost

A. Base Cost1. Coastal Fisheries Resource Management 5.10 10.50 15.602. Community Development and Poverty Reduction 2.90 10.00 12.903. Environmental Improvement of Fish Landing Centers 7.45 9.05 16.504. Institutional Strengthening and Project Management 4.60 4.40 9.00

Subtotal (A) 20.05 33.95 54.00B. Contingencies

1. Physical 1.97 3.25 5.122. Price 1.48 7.80 9.28

Subtotal (B) 3.45 11.05 14.50C. Interest and Service Charges

1. Interest During Construction 5.84 0.00 5.842. Commitment Charges 0.66 0.00 0.66

Subtotal (C) 6.50 0.00 6.50

Total Cost 30.00 45.00 75.00

72. The Projects economic benefits are based on expected improvements in fishstocks and other aquatic resources as a result of improved coastal management and reductionof destructive fishing through effective MCS activities. The magnitude and timing of the benefitshave been conservatively estimated. The Project is expected to yield an economic rate of returnof 19 percent.

73. Environmental costs, including costs associated with mitigation measures andenvironmental monitoring have been included as an integral part of the Project budget. Theseinclude, for example, approximately $250,000 for the waste disposal systems to be provided atthe fish landing facilities and $800,000 for clean water supply and drainage system. Regular

monitoring activities, which will include monitoring of environmental impacts, have beenprovided a budget of $990,000 over six years. Information and training, which will includeenvironmental awareness building, has a budget of $5 million.

G. Institutional Requirements and Environmental Monitoring Plan

1. Institutional Requirements

74. DGF, as the Project Executing Agency, will have overall responsibility forenvironmental monitoring of the Project, through the Project Coordinating Office (PCO) to beset up within the Directorate of Programs, and in coordination with site-based ProjectImplementing Units (PIUs) to be established at the Dinas Perikanan TK II offices at the four

sites. The PIUs will be headed by Site Managers and staffed by personnel from DinasPerikanan TK IIand other district government agencies, and assisted by Project Consultants.The PCO and PIUs will have adequate and qualified technical staff and will be provided withnecessary equipment and vehicles. The PCO will be responsible for preparing consolidatedenvironmental monitoring reports as part of the regular Project monitoring, with inputs from thePIUs.

75. Under the supervision of the PCO, the PIUs will carry out the day-to-dayenvironmental monitoring work for all the Project components within their areas of coverage,


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and will prepare monitoring and assessment reports for submission to the PCO. Variousdirectorates under DGF will provide assistance in the monitoring of specific activities or impactsof the Project: (i) the Directorate of Resources, for fisheries resource utilization as part of MCSactivities; (ii) the Directorate of Infrastructure, for activities and impacts associated with therehabilitation of the fish ports and social infrastructure; (iii) the Directorate of Enterprises, formicroenterprise development activities; and (iv) the Directorate of Production, for seabass

farming and other livelihood development activities.

76. The cost of the environmental monitoring will be covered under the Projectbudget for the coastal fisheries resource management component. The total investment forregular monitoring activities is $990,000 while the total recurrent cost for MCS over five years is$468,000.

2. Monitoring Program

77. The monitoring program will be a continuing program of data gathering andanalysis to ensure the effectiveness of the mitigation measures for potentially adverseenvironmental impacts arising from construction and operation of Project facilities. For the

harbor facilities, the following will be monitored: (i) possible changes in coastal features of Prigiand Tegal Sari, such as erosion and deposition resulting from disruption of natural longshoresediment transport due to construction of breakwaters; (ii) water quality during construction,particularly turbidity caused by dredging activities, and its effects on nearby bathing beaches;(iii) noise levels from construction activities, particularly for Tegal Sari which is denselypopulated in view of possible nuisance effects; (iv) wastewater discharges during portoperation, particularly the fish auction hall washwater, sanitary water from toilets, and bilgewater from boats; (v) water quality in the harbor basin and surrounding coastal water duringharbor operation, particularly for key parameters including suspended solids, biological oxygendemand (BOD), dissolved oxygen (DO), coliform, oil and grease, and surfactants; (vi) usage ofthe harbor, particularly among various boat sizes to ensure that small boat operators are notdeprived of space by larger vessels; and (vii) water requirements and water supply, particularly

in Tegal Sari.

78. For the CRM activities, the following will be monitored: (i) the fishing activity andcatch data in the areas where artificial reefs are to be established to prevent misuse of the reefareas (i.e., avoid negative effects of the artificial reefs becoming mere fish attractors rather thanprotected habitat); and (ii) the short-term effects of constructing the proposed sea wall inBengkalis, particularly the potential impacts on water turbidity caused by dredging and possiblechanges in longshore current speed and wave energy.

79. For the community development and poverty reduction activities, the followingwill be monitored: (i) the expansion of seabass farming microenterprise activities, particularlythe siting of the cages, compliance with capacity limits and zonation plans, and in-migration to

the area induced by seabass farming opportunities; (ii) fuelwood consumption to support fishprocessing micro-enterprises, particularly for boiled fish processing (pindang) which could leadto the increased cutting of mangroves or bamboo for fuel; (iii) diversification of fishing gear,particularly in compliance with restrictions against replacement of converted purse seinevessels, and enforcement of the proposed licensing system to regulate the number of vesselsoperating in coastal waters; (iv) construction impacts of the proposed social infrastructure(access roads, water supply, sanitary facilities, housing improvements, etc.) particularly land


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disturbance and vegetation clearing; and (v) socioeconomic indicators, such as income offishermen, fish processors, fish traders, and women.

H. Public Participation

80. The Project has a very strong beneficiary orientation and provides various

measures meant to elicit the active involvement of the target groups, including women, inProject implementation. It was designed using the participatory process approach involvingextensive local-level consultations with key stakeholders at the four Project sites as well as anational workshop to validate the acceptability of the proposed planning framework and theProject components. Throughout the study period, considerable time and effort were spent ininforming the public at the Project sites of the proposed establishment of the Project, in seekingtheir views and listening to their concerns, and in making them aware of the importance ofcommunity participation in the attainment of Project goals and objectives.

81. Rapid social assessment surveys of selected coastal communities wereconducted in October-November 1996 in identified villages in the four selected Project sites.These surveys were aimed at (i) generating baseline information on the current socioeconomic

conditions of the target beneficiary groups; (ii) establishing socioeconomic profiles of targetbeneficiaries; (iii) assessing income levels and perceptions on employment opportunities in theselected sites; (iv) assessing the availability of social facilities and services as well as villagersaccess to services provided by local organizations; and (v) determining community problemsand capabilities, and the requirements to address these problems.

82. To augment and confirm the data generated through the rapid socialassessment surveys, one national and eight local-level consultations and focus groupdiscussions were conducted from 1-18 November 1996 at selected villages within the fourProject sites. These workshops were attended by various stakeholder groups and facilitated bythe TA team's facilitators for goal-oriented project planning. The local-level consultativeworkshops focused on problems and needs of the intended target groups and sought their

ideas for solutions based on an assessment of existing potentials. The participatory situationanalysis afforded the different target groups the opportunity to influence the planning anddesign of the Project based on an analysis of alternative solutions and specific measures thatshould be taken to solve problems.

83. In summary, the Project was designed with full consideration given to the needsand wants of the beneficiaries', on one hand, and their possible contributions toward theattainment of Project objectives on the other. Moreover, the approach to Project implementationis participatory, with community organization and social preparation as key tasks that willcontinue throughout the duration of the Project. The Project's social preparation approach willwork through the village councils which consist of village officials and representatives fromdifferent social and religious groups operating in the villages, including youth groups. A public

information and education program will be implemented on a nationwide scale but with a strongfocus on the coastal communities at the selected Project sites.

I. Conclusions

84. Environmental and social considerations have been included in site selection andthe design of the Project components and activities. The IEE undertaken as part of thefeasibility study was supplemented by additional field investigations and data analysis carried


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out in cooperation with DGF and the Dinas Perikananat the four Project sites, and presented inthe EIA report.

85. An evaluation of the potential impacts of Project components and activities onthe environment showed that the Project is expected to have a preponderance of significantenvironmental benefits in terms of resource conservation, pollution abatement, and

improvement of public health. Potential adverse environmental impacts identified during theIEE, including those which gave rise to the preparation of a full EIA, were found to be mitigableand of minor or moderate significance.

Documents

5. Report - Coastal Community EIA - Indonesia