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Asia 17-050 · fi' USAID FROM THE AMERICAN PEOPLE INDONESIA INITIAL ENVIRONMENT AL EXAMINAT ION (IEE) Amendment #2 to Asia I 1 -1 16 Indonesia IEE World Bank PIO Grant to PN PM Support Fund PROGRAM/ACTIVITY DATA Count ry Indonesia Program Name World B ank PIO Grant to PN PM Support Fund Life of Activity Duration June 15, 2020 Life of Activi ty Funding $94,700,000 Current Date April 4, 2017 Prepared by: Ketty Kadarwaty (DRG - US AID/ lndonesia) IEE Amendment (Y/ N): Y If 'YES', Number and Da te of Original IEE: Asia 11-116 dated 7/7/20 11 (Origi nal document http://gemini.info.usaid.gov/repository/pdf/38 I 9 I .pdf) and Asia 14-022 dated 9/ 19/20 13 (amendment# ! document http://gemini.info.usaid.gov/repository/pdf/39559.pdf) ENVIRONMENTAL ACTION RECOMMENDED: (Place X where app licable) Categorical Exclusion: X Negative Determi nation: X Posit ive Determinat ion: 0 Deferral: 0 ADDITIONAL ELEMENTS: (Place X where applicable) Conditi ons: X I. Purpose and Scope of Amend ment: Amendment #2 : The purpose of this amendment is to : a. Extend the Life of Acti vity Du ration of this IEE from June 15, 20 17 to June 1 5, 2020 as t he result of the No Cost Ext ens ion (NCE) reQu ested by t he Worl d Bank. b. Add t he following additional activities in Section II -Act ivities Fu nded Under the Faci lity, as follows: Provision of support for village public financial management, including, but not limited to, the scaling up and integrated support to: (i) strengthen the enabling environment through the finaliz ation of revisions to the regulatory framework and acc ounting s tandards; (ii) incorporate regulatory changes in the roll out of village financial management and reporting systems that enable villages to more easily track their budgets and expenditures , generate

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Asia 17-050

·fi' USAID ~ FROM THE AMERICAN PEOPLE INDONESIA

INITIAL ENVIRONMENTAL EXAMINAT ION (IEE) Amendment #2 to Asia I 1-1 16 Indonesia IEE

World Bank PIO Grant to PN PM Support Fund

PROGRAM/ACTIVITY DATA

Country Indonesia

Program Name World Bank PIO Grant to PN PM Support Fund

Life of Activity Durat ion June 15, 2020

Life of Act ivity Funding $94,700,000

Current Date April 4, 2017

Prepared by: Ketty Kadarwaty (DRG - USAID/ lndonesia)

IEE Amendment (Y/N): Y If 'YES', Number and Date of O riginal IEE: Asia 11-116 dated 7/7/20 11 (Or iginal document http://gemini.info.usaid.gov/repository/pdf/38 I 9 I .pdf) and Asia 14-022 dated 9/ 19/20 13 (amendment#! document http://gemini.info.usaid.gov/repository/pdf/39559.pdf)

ENVIRONMENTAL ACTION RECOMMENDED: (Place X where applicable) Categorical Exclusion: X Negative Determinat ion: X Posit ive Determination: 0 Deferral: 0

ADDITIONAL ELEMENTS: (Place X where applicable) Conditions: X

I . Purpose and Scope of Amendment:

Amendment #2: The purpose of this amendment is to: a. Extend the Life of Activity Duration of this IEE from June 15, 20 17 to June 15, 2020 as

t he result of the No Cost Extension (NCE) reQuested by the World Bank. b. Add the following additional activities in Section II -Activities Funded Under the Facility,

as follows:

Provision of support for village public financial management, including, but not limited to, the scaling up and integrated support to: (i) strengthen the enabling environment through the finalization of revisions to the regulatory framework and accounting standards; (ii) incorporate regulatory changes in the roll out of village financial management and reporting systems that enable villages to more easily track their budgets and expenditures, generate

accountability reports and data; (iii) strengthen the design and integration of village financial tracking and accountability systems with district and national systems; (iv) strengthen the capacity building for village governance through more effective financial management; and (v) strengthen the degree to which village financial information is being made available and accessible to, and informed by, citizens. Provision of technical assistance and policy advice to establish transparency through an integrated village data platform to track village financial and non-financial information. Implementation of KIA T Guru pilot to improve student learning outcomes by engaging citizens and by strengthening teachers' performance and accountability. Improvement of education service delivery through technical assistance, evaluation and other analytical activities to support KIAT Guru and policy advice on the delivery of local services for education. Provision of technical assistance and policy advisory to support universal access to safe water supply in urban areas and improve living conditions of the urban poor.

The scope and nature of all other activities as approved in the original IEE (Asia I 1- 1 16) and amendment# I (Asia 14-022) are remain the same.

Summary of Findina:s;

This IEE provides the init ial threshold determinations for the proposed USAID contribution to the World Bank PIO Grant to the PNPM (Program N ational Pemberdayaan Masyarakat Mandir i or N at ional Program on Community Empowerment) Mandiri Urban Support Fund (PNPM Urban).

• A Categorical Exclusion is recommended for World Bank PUIO Grant to PNPM Urban which will provide technical assistance and t raining and will not have direct or indirect impact on the natural or physical environment. These activities are accorded a Categorical Exclusion pursuant to 22 CFR 2 I 6.2(c) (2) (i) for education, technical assistance or training programs; 22 CFR 216.2( c) (2) {iii) for analyses, studies, academic or research workshops and meeting activit ies; 22 CFR 2 I 6.2(c) (2) (v) for documents and information transfers; and 22 CFR 2 I 6.2(c) (2) (xiv) for studies and act ivities intended to build the capacity of the recipient country to engage in development planning.

• A Negative Det ermination with Condit ions is recommended per 22 CFR 2 I 6.3(a)(2)(iii) for some possible activities under W orld Bank PUIO Grant to PNPM Urban that may lead to adverse environmental impacts including small infrastructure investment works, social services projects and other community-led poverty reduction activities.

However , significant adverse impacts are not foreseeable from the implementation of these activities if the mitigation measures outlined in this IEE are used in applying best practices of small-scale constructions and rehabilitation/improvement activities. Regional engineers, PN PM coordinators, and village committee are responsible for identifying potential minor impacts and appropriate mitigation measure for each activity. Environmental mitigation, monitoring, and evaluation are part of the PNPM Mandiri Urban Program, which includes Government of

Indonesia environmental safeguards and procedure developed with the World Bank. These are established procedures carried out by the Integrated Safeguards Data Sheet Appraisal Stage and Project Appraisal Document stage for the PNPM loan to GOI. There is also a PNPM Urban Field Manual for implementing public work, which includes environmental safeguards.

Updat e: joint monitoring between W orld Bank and USAID has been conducted in the past to verify the implementation of the activities and confirmed the project compliance to the World Bank Safeguard and the PNPM Urban Field Manual as the environmental safeguards for this mechanism without any deficiencies.

2. Background and Descript ion of Activities

2. 1 Backeround

The earthquake and tsunami of December 26, 2004 devastated Aceh's social, political, and economic systems. More than 125,000 people lost their lives and hundreds of thousands were displaced and unable to return to their co mmunities. Critical infrastructure and services (water supply and sanitation, power, housing, roads and bridges, health and education facilities), local government functions and local economies were all decimated.

Since the disast ers occurred, Indonesia has made good progress in reconstruction and recovery of relief efforts to mitigate t he impacts of the tsunami, and earthquake. However, there is still much left to be done as economic activity in disaster-affected areas are still lacking and poverty continues to rise among the urban poor. The No rth Sumatran economy is composed of agriculture (23%), industrial (32%), and service sectors (45%). Similar to other developing regions, urbanization is taking place in North Sumatra with nearly half of the total population in urban areas. However, there are indications that job opportunities and job creation in urban areas are limited and not keeping pace with growing job needs. The share of urban employment in total employment is declining in recent years fro m 41 .5% in 2008 to 39.2% in 20 I 0. The unemployment rate in urban areas as of August 20 I 0 ( I 0.8%) is more than two times higher than the rural unemployment rate (5.1 %). Also, while the rural unemployment rate is constantly improving in the last years, the urban unemployment has been stagnating. Consequently, almost half of the total poor population in No rth Sumatra (46%) lives in urban areas.

Aceh is exper iencing the same problems. Around 30% of the total population dwells in urban areas and the share of urban employment compared total employment has not changed much in recent years, staying at approximately 30%. As of August 20 I 0 the unemployment rate in urban areas (9.5%) is higher than the rural unemployment rate (7.90/o). About 20% of the total poor population resides in urban areas.

Indonesia has made good progress in reducing poverty and improving local governance through a variety of programs particularly within the framework of the PNPM. PNPM Urban was launched in 2006, stemming from the Urban Poverty Program (UPP). PNPM Urban currently operates in 11,014 Kelurahans in 1,094 Sub-districts. PNPM Urban and PNPM Rural are core programs of the Government of Indonesia's (GOI) national program for community empowerment - Program Nasional Pemberdayaan Masyarakat Mandiri (PNPM Mandiri). The development objective of the National Program for community Empowerment in Urban Areas Project for Government of Indonesia (GOI) is to ensure that the urban poor in PNPM Urban locations benefit from improved socio-economic and 1local governance conditions.

2.2 Activities Description

2.2.1 Description of Activities

A. The National Program for Community Empowerment (PNPM)

The National Program for Community Empowerment or PNPM is a national program of the Government of the Republic of Indonesia (GOI) for community empowerment aimed at accelerating poverty reduction. The goal of this program is to empower diverse rural and urban communities to actively participate in development. In this regard, the PNPM objective is to nurture the solidarity and cooperative spirit of the community to be self-sustaining.

Given the variety of other sectoral programs, PNPM provides an umbrella framework for all community-driven development programs in Indonesia. By consolidating these programs under a single framework, PNPM will create a unified design for program delivery, avoid overlapping and duplication of programs and activities, better national targeting for the poorest, and direct transfer of funds to villages for better utilization of poverty reduction efforts. To support PNPM and poverty alleviation related activities, the GOI established the PNPM Support Facility ("the Facility"). It is recognized that international development cooperation has an important role in supporting Indonesia to meet its goal in reducing poverty. Therefore, through the Facility, donors are providing coordinated technical assistance, planning advice and dialogue, as well as targeted financial assistance to the government in supporting PNPM.

B. The Facility

The Facility is a mechanism established by the GOI and donors to facilitate new modalities and institutional arrangements for providing support to PNPM. The purpose of the Facility is to establish a common platform to mobilize donor resources and channel financial assistance in support of the Republic of Indonesia's efforts to reduce poverty through: (a) provision of strategic oversight of PNPM and related poverty reduction programs, and (b) coordination of donor-provided grant funds. The specific objectives of the Facility are:

a) To ensure better coordination across grants supporting PNPM ; b) To develop capacities at all levels to plan, manage and improve poverty reduction

programs; c) To reduce poverty through government and civil society partnerships; and

d) To support high quality monitoring and evaluation.

The Facility supports the objectives of PNPM by providing: a) Global experience and expertise o n poverty reduction. b) A mechanism to improve the coordination and oversight of poverty reduction

programs. c) An objective platform to review, share and aptply lessons across poverty programs. d) An arena for high quality debate on solutions to poverty programs. e) Technical and financial resources for evidence gathering and program development

around poverty themes. f) Windows for access to a range of do nor programs and resources on poverty reduction.

Do nors, which as of the date of this Grant include the United Kingdom of Great Britain and Northern Ireland, Australia, the Kingdom of Denmark, the Netherlands and the European Unio n, represented by the Commission of European Communities, support the Facility through contr ibutions to the Facility Trust Funds administered by the Bank, which funds are kept separate and apart from other funds of the Bank.

The Facility is administered by the Bank under the guidance of the Joint Management Committee. The description above provides a brief overview of PNPM and the Facility as of the date of this Grant, it being understood that such arrangements may be changed with the approval of the Jo int Management Committee.

2.2.2 Activities Funded Under the Facility

The Facility provides funding for the following activit ies: (a) Provision of support fo r small infrastructure investment works, social services projects

and other community-led poverty reduction activities, through co-financing of Bank and International Develo pment Association operations, and other investments, including provision of block grants for the benefit of communities.

(b) Provision of grants to intermediary NGOs and other civil society groups which engage in poverty reduction activities at grassroots le·vel to be on-granted to groups which provide special services to poor communities, or to develop the capacity of such intermediary NGOs or groups to engage in such on-granting activities.

(c) Provision of technical advisory services and other material assistance to agencies of the Republic of Indonesia to support their long-term capacity to engage in the long-term management of the PNPM.

(d) Provision of technical advisory services to support PNPM-related special studies and programs, including establishment and operatio n of a partnership office for harmonization and coordination of PNPM-related programs and technical advisory services, monitoring and evaluation activities, special activities, workshops and facilitated comparative studies, as well as activities in support of national and local government poverty reduction programs or to develop the capacities of universities, think-tanks and other organizations likely to contribute to achievement of the purposes of the PNPM.

(e) Provision of support for village public financial management, including, but not limited to, the scaling up and integrated support to: (i) strengthen the enabling environment

through the finalization of revisions to the regulatory framework and accounting standards; (ii) incorporate regulatory changes in the roll out of village financial management and repo rting systems that enable villages to more easily track their budgets and expenditures, generate accountability reports and data; (iii) strengthen the design and integration of village financial t racking and accountability systems with district and national systems; (iv) strengthen the capacity building for village governance through more effective financial management; and (v) strengthen the degree to which village financial information is being made available and accessible to, and informed by cit izens.

(f) Provision of technical assistance and policy advice to establish transparency through an integrated village data platform to track village financial and non-financial information.

(g) Implementation of KIAT Guru Pilot to improve student learning outcomes by engaging citizens and by strengthening teachers' performance and accountability.

(h) Improvement of education service delivery through technical assistance, evaluation and other analytical activit ies to support KIAT Guru and policy advice on the delivery of local services fo r education.

(i) Provision of technical assistance and policy advisory to support universal access to safe water supply on urban areas and improve living conditions of the urban poor.

The USAID Grant shall be contributed to a PSF Trust Fund and used to support Facility activities, as may be approved by the Joint Management Committee in accordance with the established policy and procedures fo r the Facility as described more fully in the PNPM Support Facility Operations Manual as it may be amended from time to t ime by the Jo int Management Committee. USAID propose to the Joint Management Committee that the USAID Grant be principally used for activities described under sub-paragraph (a) above. In particular, to supplement community block grants under PNPM Mandiri Rural to poor sub-dist ricts or kecamatans in selected provinces in Indonesia.

2.2.3 The Governance Structure of the Facility

The Grant funds shall be administered in accordance with the established policy and procedures fo r the Facility, including, but not limited to the PNPM Support Facility Operat ions Manual, as it may be amended from t ime to time with the agreement of the Joint Management Committee, and the Bank's policies and procedures for Trust Fund management and procurement. Provided below is a brief overview of t he Facility governance ar rangements as of the date of this Grant, it being understood that such arrangements may be changed with the approval of the Joint Management Committee.

The Facility management st ructure is under the coordination of the PNPM O versight Body which is part of the Coordinating Team for Poverty Reduction. The Facility management str ucture consists of:

A. Steering Committee Qoint Management Committee OMC)) The JMC is chaired by GOl's National Development Planning Agency (Bappenas) and includes representat ives of GOI agencies, the Bank as Trust Funds administrator and all donors with contributions of more than $1 million equivalent. The JMC (i) provides overall policy guidance

and review, (ii) promotes harmonization across all poverty programs, and (iii) decides funding allocation.

B. Technical Committee The Technical Committee is co-chaired by Bappenas and the chair of the Technical Secretariat and monitors the Facility activities, discusses technical issues and prepares alternatives for the JMC.

C. Advisory Panel The JMC may be supported by an Indonesian advisory panel that consists of experts in poverty reduction and/or community empowerment issues, selected by the JMC.

D. Technical Secretariat The Technical Secretariat or Secretariat supports the JMC and the Technical Committee. The chair of the Secretariat is appointed by the JMC. The Secretariat administers funds received from donors in accordance with Bank guidelines for trust fund management and applicable GO I procedures.

3. COUNTRY & ENVIRONMENTAL INFORMATION

3.1 Location Affected

PNPM Urban activities in North Sumatra, Aceh, and Nias, as well as the current support for the PNPM Rural activities.

3.2 National Environmental Po licies and Procedure

Environmental Protection and Management Law (Law N o. 32/2009) Environmental Protection and Management Law N o. 32/2009 establishes a framework for environmental planning, environmental impact analysis and licensing, and rights, responsibilities and penalties. Designed to supplant previous environmental legislation (Law No. 23/ 1997), Law No. 32/2009 requires subnational governments to formulate environmental protection and management plans (RPPLH) and to conduct strategic environmental assessments (KLHS) to be used as a basis for regional development planning. It also stipulates that activit ies expected to have an impact on the environment are required to undergo an environmental impact analysis (AMDAL) or to develop an environmental management/environmental monitoring plan (UKL­UPL), depending on the nature of the activity, as a condition for obtaining an environmental license (lzin Lingkungan). An AMDAL is equivalent to an Environmental Impact Statement (EIS) by USG definition and is required follow ing a Positive Determination in an IEE. Additional requirements for environmental license holders include mandatory, periodic environmental audits and the establishment of dedicated environmental remediation funds. Law N o. 32/2009 also includes provisions for the management of hazardous and toxic materials as well as hazardous and toxic waste. Rights of communit ies and NGOs to file legal claims regarding environmental pollut ion or damage are expanded under the Law, which also imposes harsher

administrative and criminal penalties for violators. The implementation of Law No. 32/2009 is governed by Ministry of Environment Regulation No. 5/2012.

4. EVALUATION OF POTENTIAL ENVIRONMENTAL IMPACTS

The activities that are not expected to have an impact on the physical environment include education, technical assistance or training, analyses, studies, academic or research workshops and meetings. USAID's complementary monitoring and evaluation activity would have no environmental impact.

The activit ies that are expected to have an impact to the physical environment include construction for community-based clean water supply, rehabilitation/improvement of village roads, schools, village irrigation, community health service, local markets, bathing, washing and toilets facilities. This includes, inter alia, soil erosion, air pollution caused by construction dust, construction debris and waste including toxic or hazardous materials, noise, increased traffic, and contaminate or deplete surface and ground water supplies.

5. RECOMMENDED THRESHOLD DECISIONS AND MITIGATION ACTIONS

5.1 Recommended Threshold Decisions and Conditions

A Categorical Exclusion is recommended for World Bank PIO Grant to PNPM Urban under 22 CFR.2 16.2( c)(2)(i) for education, technical assistance, or training programs, except to the extent such programs include activities directly affecting the environment (such as construction of faci lities, etc.); analysis, studies, academic, or research workshops and meeting (22 C FR 216.2( c)(iii)); for projects in which USAID is a minor donor to a multi donor project and there is no potential significant effect upon the environment of the United States, areas outside any nation's jurisdiction or endangered or threatened species or their critical habitat (22 CFR 216.2( c)(2)(iv) ), and for document and information transfer (22 CFR 216.2( c)(2)(v).

Activities under the PNPM Urban cover multiple sectors. Specific guidelines and condit ions for each sector are found below:

Agriculture and Irrigation http://usaidgems.org/Sectors/agriculture.htm

Small-scale Construction http://usaidgems.org/Sectors/construction.htm

Eco-tourism http://usaidgems.org/Sectors/ecotourism.htm

Energy Sources for Development http://usaidgems.org/Sectors/energy.htm

Fisheries and Aquaculture http://usaidgems.org/Sectors/fisheries.htm

Forestry: Including Forest Management, Plantations, and Agroforestry http://usaidgems.org/sectorG u idelines.htm

Humanitarian Response Programs and the Environment http://usaidgems.org/Sectors/hrda.htm

Integrated Pest Management http://usaidgems.org/Sectors/ipm.htm

Livestock http://usaidgems.org/Sectors/livestock.htm

Solid Waste http://usaidgems.org/Sectors/solidWaste.htm

School http://usaidgems.org/Sectors/schools.htm

Water Supply and Sanitation http://usaidgems.org/Sectors/watsan.htm

Medium and small-scale enterprises guidelines:

Introduction - MSEs & the Environment http://usaidgems.org/Documents/SectorGuidelines/ENCAP/mse introduction.pdf

Mechanisms for MSEs to Control Environmental Impact http://usaidgems.org/Documents/SectorGuidelines/ENCAP/mse controlmechanisms.pdf

Institutionalizing Environmental Capacity http://usaidgems.org/Documents/SectorGuidelines/ENCAP/mse institutionalizing.pdf

Sub-Sector Specific Clean Production Briefings http://usaidgems.org/Documents/SectorGuidelines/ENCAP/mse sectorbriefings.pdf

Brick & Tile Production http://usaidgems.org/mse/brick Ti le.htm

Food Processing htt_p://usaidgems.org/mse/foodProcessing.htm

Leather Processing http://usaidgems.org/mse/leatherProcessing.htm

Metal Finishing http://usaidgems.org/mse/metalFinishing.htm

Small-Scale Mining http://usaidgems.org/Sectors/mining.htm

Wet Textile Operations http://usaidgems.org/mse/wet T extile.htm

Wood Processing and Furniture Making http://usaidgems.org/mse/wood Processing.htm

The PNPM environmental procedures established with support of the World Bank are deemed to be adequate for the purposes of USAID because of the following:

• PNPM Urban is concerned about preserving the environment ensuring that any negative effect from PNPM Urban activities can be avoided or at least mitigated. PN PM Urban follows official Indonesian Government policy in regard to environmental impact. According to the decree of the Minister of Environment No. 11 of 1994, the types and activities undertaken by PNPM are exempted from formal impact analysis due to very small scale of investment construction activities supported.

• Approach to controlling environmental impact in PNPM Mandiri: As part of the planning process, a form indicating potential environmental problems is developed /completed which is then followed up during and after the implementation by village technical facilitators. Potential impacts include serious problems (unlikely to occur) as well as relatively minor problems that are likely to occur.

• Environmental impact control strategy: The method used to ensure that proper attention is paid to environmental concerns is a combination of a standard check list and a special check list for the environment for each type of sub project, a technical standard is included in the project manuals and these include consideration of environmental effects. The completion of the environmental form is an obligatory part of the planning process. Each type of project is checked for the various measures that must be performed to avoid or minimize environmental impact.

• Field oversight reviews of PNPM Urban have not ident ified significant or recurrent environmental impact . The basic environmental impact potential supported through this project is low. Most of the previous environmental issues originated from failing to follow best civil engineering practices and it is likely that these have been addressed through continued training and supervision of engineer ing staff providing technical advice. It has been made clear that the nationa~ government, the donor and the national consultants place high importance on attention to the environment. All civil works in the PNPM Urban are very small and have mostly negligible negative impact. There is no significant long-term potential impact triggered by this project . Mitigation of these minor negative environmental impacts can be done by ongoing training to facilitator s, project monitoring and intensified supervision. The project w ill cont inue internalize impact

mitigation measures in all stages of project activities in order to minimize negative impact.

• The GOI or Project Implementers are familiar and have the capacity to implement the environmental guidelines as they have managed the implementation of KDP ser ies and PNPM over the last 11 years. The National Consultant Team is currently assisting the Project Management Unit (PMU) of the Implementing Agency and has experts in environmental management. The project will continue strengthening the capacity of project management staff, consultants and facilitators in environmental and social safeguards.

• N o significant environmental issues are anticipated. PNPM Urban investments are very small and under the Indonesia Environmental Assessment rules, they all fall below the minimum size required for a formal environmental assessment.

5.2 Mitigation, Monitoring and EvaJuation

As required by A DS 204.3.4, the Agreement Officer's Representative (AOR) and Development Objective (DO) team will actively monitor ongoing activities for compliance with approved IEE recommendations, and modify or end activities that are not in compliance. If additional act ivities that are not described in this document are added to this program, an amended environmental examination must be prepared.

The AOR is responsible for ensuring that the environmental requirements set forth herein are met, especially the conditions required under the Negative Determination with Conditions. This includes ensur ing that both World Bank and implementing partners for PNPM Mandiri Urban adhere to the requirements outlined herein. The manual and other environmental guidelines produced by the PNPM Urban will be used as references for the independent monitoring and evaluation activity that USAID is funding.

As deemed necessary, the AOR is responsible for initiating an IEE Amendment if it is determined t hat changes are warranted. The Mission Environmental Officer (MEO) will conduct spot checks to ensure that conditions in the IEE are met and to ensure that all activities are implemented in an environmentally sound and sustainable manner in full accordance with all salient Agency and USG policies and regulations and this IEE.

6. LIMITATIONS AND REVISIONS

6. 1 Limitation

This IEE does not cover activities involving the following: a. Assistance, procurement or use of genet ically modified organisms (GMOs), which will

require preparation of a biosafety assessment (review) in accordance with ADS 20 I .3. I 1.2(b) in an IEE approved by the Bureau Environmental Officer (BEO);

b. Activities for t he procurement, use or recommendation for use of pesticides or activities involving procurement, t ransport, use, storage, or disposal of toxic materials;

c. Activities involving support to wood processing, agro-processing, industrial enterprises, and regulatory permitting;

d. Development Credit Authority (DCA) or Global Development Alliance (GDA) programs;

e. Procurement or use and/or disposal of Asbest os Containing Materials (ACM) (i.e . piping, roofing, etc.), Polychlorinated Biphenyl's (PCB) or other hazardous/toxic materials for construction projects.

f. Procurement, use and/or disposal of equipment containing and/or generating low-level radioactive materials and wastes.

Any of these actions would require an amendment to the IEE approved by the BEO.

6.2 Revision

If during implementation, project activities are considered outside of those described in this IEE, an amendment to the IEE shall be submitted. Pursuant to 22 C FR 2 I 6.3(a)(9), if new information becomes available which indicates that activities to be funded by the Democratic Governance Project might be "major" and their effect "significant," this Threshold Decision will be reviewed and revised by the cognizant operating unit and submitted to the BEO/Asia for approval and, if appropriate, an Enviro nmental Assessment will be prepared.

This IEE shall also be amended when: I) the funding levels in increased beyond $250,000; 2) LOP is extended beyond 6 months; and 3) the scope and nature act ivities are changed.

APPROVAL OF ENVIRONMENT AL A CTION RECOMMENDED Amendment #2 to Asia I 1- 1 16 Indonesia IEE World Bank PIO

Grant to PNPM Mandiri Urban Support Bank

CLEARANCE:

DRG: d~~ Date: '1/b/!7= •

David Hoffman USAID/lndonesia - Director Democratic Right Government Office

MEO: -------Date: _<4_-er:J.-r_ e.J_b'f eAA'/ lfri '6 / rd-h.M Putu Kurniawan USAID/lndonesia - Mission Environmental Officer

RLO: ~~J Date: +(6? /~t7 Betty Chun USAID/lndones:Residtt Legal Officer

REO: Aaron Brownell USAID/RDMA - Regional Environmental Officer

DDIR: J :J ~ Date: (Ok :Z-.Vf:f Patrlk W ilson USAID/lndonesia - Deputy Mission Director

DECISION OF USAID/INDONESIA MISSION DIRECTO R:

APPROVAL:

DIR:~Date: rtnCKee

USAID/lndonesia - Mission Director

BEO:

DECISION OF THE ASIA BUREAU ENVIRONMENTAL OFFICER: Amendment #2 to Asia I 1-1 16 Indonesia IEE

World Bank PIO Grant to PNPM Support Fund

1----.,,__ _____ Date:~ f /I '°2.o1-;J--i on u Environmental Officer