Integrated Safeguards Data Sheet (Updated)

Report No: AC242Section I - Basic InformationDate ISDS Prepared/Updated: 08/28/2003A. Basic Project Data (from PDS)I.A.1. Project StatisticsCountry: INDONESIA Project ID: P059931Project: Water Resources & Irrigation Sector Managemen Task Team Leader: Guy J. AlaertsProgramAuthorized to Appraise Date: March 13, 2003 IBRD Amount ($m): 45.00Bank Approval: June 26, 2003 IDA Amount ($m): 25.00Managing Unit: EASRD Sector: Irrigation and drainage (50%); General water,Lending Instrument: Adaptable Program Loan (APL) sanitation and flood protection sector (50%)Status: Lending Theme: Water resource management (P); Rural

services and infrastructure (P)

I.A.2. Project Objectives (From PDS):For APL Phase Ia) Water allocation, water quality and water conservation improved in Project basins, and river

infrastructure better maintained, through strengthened capacity for planning and management; andinvestments.

b) Sector governance enhanced, and sector fiscal sustainability strengthened, nationally, and in Projectbasins, through setting up Water Resources Councils; ensuring stakeholders involvement; unbundlingof operational tasks, and Private Sector Participation; improved cost recovery; and piloting a staffredundancy plan.

c) Increased agricultural productivity and improved performance of irrigation, based on participatoryirrigation scheme management, through setting up and strengthening WUAs; strengthening restructuredDinas PUP of local government; financing rehabilitation and improvement of existing irrigationschemes; and facilitating access to agricultural support services and micro-credit.

These objectives are further specified for two "windows" in the logframe (Annex 1): for Improved WaterResources Sector Performance, and for Improved Irrigation Management and Agricultural Productivity.

I.A.3. Project Description (From PDS):Components:

A. Sector & Basin Water Resources ManagementA. 1. Sector Governance & Planning CapacityA.2. River Basin Management CapacityA.3 Implementation of Fiscal and Cost Recovery Policies (includes severance payments)A.4. River Basin Infrastructure ImprovementB. Participatory Irrigation ManagementB. 1 Water User Associations CapacityB.2 Irrigation Agency CapacityB.3 Irrigation Infrastructure ImprovementB.4 Irrigated Agriculture Support

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I.A.4. Project Location: (Geographic location, information about the key environmental and socialcharacteristics of the area and population likely to be affected, and proximity to any protected areas, or sites orcritical natural habitats, or any other culturally or socially sensitive areas.)The Project (WISMP 1) is Phase I of a 10-year three-Phase Adaptable Program Loan (APL) and willconcentrate its activities in the 5 Java provinces (Banten, West, Central and East Java, and DIYogyakarta), with a more modest activity in those (parts of) 25 kabupatens and 7 provinces (North, Westand South Sumatera, Lampung, South and Central Sulawesi, and East Nusa Tenggara) outside Java wherethe Dutch Grant-funded Indonesia Water Resources and Irrigation Reform Implementation Project(IWIRIP) is currently already active. The provinces wil receive support for their river basin management.The kabupaten, all in the same provinces (except Banten), will receive support for their irrigationmanagement program. All provinces and kabupaten have participated for the past 2-4 years in the IWIRIPas well as the Java Irrigation Improvement and Water Management Project. Java as well as the off-Javaprovinces contain protected or vulnerable areas. However, the Project will not undertake investmentsoutside the existing irrigation canals or existing river bed or infrastructure (weirs, revetments, waterdistribution structures, etc.). With respect to river basin management, the focus of the Project is oninstitutional development and the gradual establishment of river basin management organizations that willbe increasingly capable to manage water resources in an integrated manner. This is different from theearlier appoaches where the Ministry of Public Works, which held a monopoly position in watermanagement, would emphasize development through physical infrastructure. Integrated water resourcemanagement would notably include aquatic ecological and biodiversity aspects. The interventions will notchange historical water uses, and are aimed at creating institutional, participatory arrangements that willhelp resolve existing as well as potential future water conflicts. Thus, the Project will not affect protectedor vulnerable areas. No isolated vulnerable indigenous peoples will be affected. In the longer run, inPhases II and 1111 of the APL there is a possibility that such vulnerable groups will be affected.

B. Check Environmental Classiflcation: B (Partial Assessment)

Comments: Two sub-components of WISMP I involve physical works. Under A.4, River BasinInfrastructure Improvement, eligible activities will include repair, rehabilitation and calibration of river basinmanagement infrastructure - hydrologic and meteorological gauging stations, flow measurement weirs, someflood control structures and early-warning systems, and related short stretches of river channels, canals andembankments including very localized dredging. Under B.3, Irrigation Infrastructure Improvement, the loanfunds may be used to finance small works (typically in the order of US$20,000 though can be up to $200,000)involving repair, rehabilitation and improvement of existing canals and related existing infrastructure. Theactivities may include: canal lining; repair of diversion boxes, gates, weirs, bunds and dikes; restoration andseasonal maintenance of short stretches of canals and embanlknents; and emergency clearing and repairs incases of landslides and dike failures. None of these works will have significant, complex or irreversibleadverse environmental effects or will endanger protected or vulnerable areas or habitats. Potential impactswill be short-term, localized, and readily prevented or mitigated by good engineering design and constructionpractices, reinforced by adequate supervision in the field.

The Project will provide institutional support to the national Dam Safety Commission as well as formonitoringand routine maintenance activities related to dams. No works, however, will be financed. Thus, the Safetyof Dam policy is not triggered. The Project will not engage in activities in the river that crosses the borderbetween Indonesia (East Nusa Tenggara province) and Timor Leste.

C. Safeguard Policies Triggered (from PDS)

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(click on M for a detailed desciption or click on the policy number for a brief description)Policy Triggered

Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) 0 Yes 0 NoNatural Habitats (OP 4.04, BP 4.04, GP 4.04) 0 Yes 0 NoForestry (OP 4.36, GP 4.36) 0 Yes 0 NoPest Management (OP 4.09) 0 Yes 0 NoCultural Property (OPN 11.03) 0 Yes 0 NoIndigenous Peoples (OD 4.20) 0 Yes 0 NoInvoluntary Resettlement (OP/BP 4.12) 0 Yes 0 NoSafety of Dams (OP 4.37, BP 4.37) 0 Yes * NoProjects in International Waters (OP 7.50, BP 7.50, GP 7.50) 0 Yes 0 NoProjects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60)* 0 Yes * No

Section II - Key Safeguard Issues and Their ManagementD. Sumnmary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available,describe steps to be taken to obtain necessary data.

H.D. I a. Describe any safeguard issues and impacts associated with the proposed project. Identify and describeany potential large scale, significant and/or irreversible impacts.Although river basin management activities may possibly have larger-scale, significant or irreversibleimpacts in the long term (i.e. during Phase II or m of the APL), these should in general be positive innature. Such impacts would be identified, and their potential impacts addressed during the preparation ofthese Phases, which will take place during the Project. Such impacts will not in any case occur during theProject itself, during which institutional development and management capacity will be emphasized, andphysical works will be limited to localized repair and rehabilitation activities within existing infrastructureand water course systems. Moreover, Phase I will have beneficial effects because it will graduallyimplement water quality management and pollution control in three pilot river basins and improve resourcemanagement both at local and regional levels.

In the Project no significant social issues are anticipated. The irrigation and the river basin managementcomponents focus on institutional strengthening and capacity building, albeit of new types of organizations(Water User Associations, River Basin Management Units) that will be more efficient in the use of waterand land resources, and that are more transparent, inclusive and accountable than the organizations thatassumed these tasks before. The net effect should be water management organizations that are closer andhence more responsive to water users at the community level. The Project will notably strengthen therepresentation of stakeholders on councils (rivers) and commissions (for irrigation) that take managementand budgetary decisions, which will increase accountability. A "rapid mapping" of the Project provincesshowed that the river basin activities are all located in downstream and more economically developedzones, where, in the Project provinces, no isolated vulnerable indigenous peoples are residing. Thus,indigenous peoples are not affected in the WISMP I project areas, but the project design and theIndigenous Peoples Framework (part of the Project Management Manual in Bahasa Indonesia) prepare thegovernment and the basin management agencies for the future APL Phases in which they have to adapttheir activities to such communities. Because the project will introduce and pilot water use rights and assuch introduce the recognition of ecological and irn-stream water uses, it provides an opportunity to protectand enhance the rights of poor and vulnerable groups. The Basin Water Resources Councils will providefor representation of IP where applicable.

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No significant land acquisition will take place, but it is possible that individual families may be affected ina marginal way. In most of such instances, the Project will be able to make use of traditional communitymechanisms of voluntary contribution, and in other instances, of compensation, as guided by the agreedFramework for Land and Asset Acquisition (part of the Project Management Manual in Bahasa Indonesia).The Project will have no interventions that would cause resettlement in order for infrastructurerehabilitation to proceed.

The irrigation component will have no large, significant, adverse, diverse, irreversible or unprecedentedenvironmental impacts, or affect vulnerable or protected sites or on critical natural habitats, because it is ofa primarily capacity-building nature and will be active within the existing irrigation canals only. Withrespect to works in rivers, the same limitation pertains to the river basin component. The agreedEnvironmental Guidelines (in Bahasa Indonesia) provide for a negative list. The Project ManagementManual will provide a screening procedure to guide in sub-project selection. The irrigated agriculturesupport sub-component will not finance procurement of agricultural inputs. The 11 kabupaten where thissub-component will be piloted have had training in Integrated Pest Management in earlier projects andpossess an active network of farmers with such experience.

II.D. Ib. Describe any potential cumulative impacts due to application of more than one safeguard policy ordue to multiple project component.There are no potential cumulative effects anticipated.

II.D. I c Describe any potential long term impacts due to anticipated future activities in the project area.During the Project, the basin planning capacity of the river basin management agencies will bestrengthened, which implicitly will, in the long run, have positive implications for the environmentalcondition of the basin. The Project will provide for the development of an Operational Manual orFramework on River Basin Management (to be acceptable to the Bank) that will guide water managers indealing with competitive uses, environmental and ecological aspects of integrated water management, andwith vulnerable isolated indigenous communities. In the subsequent Phases H and IH of the APL, the riverbasin management agencies could gradually develop policies and initiatives pertaining to land and soilprotection in upper catchments, and assume more complex tasks in water allocation based on theOperational Manual, all of which should have positive environmental and social impacts, or minimizeexisting or future negative ones. Indigenous people could possibly be affected in Phases II and m. Withproper consultation and planning emanating from the Operational Framework, the impacts on theindigenous peoples should be beneficial.

H.D.2. In light of 1, describe the proposed treatment of alternatives (if required)Analysis of altematives is not required.

II.D.3. Describe arrangement for the borrower to address safeguard issuesBecause of the very localized nature of the activities under Phase I, generalized and simplified frameworksfor local environmental impact mitigation, for resettlement and land acquisition, and for arrangements tosafeguard vulnerable isolated indigenous peoples are adopted similar to the ones agreed between Gol andthe World Bank for community-driven development projects such as KDP-H. These frameworks willbecome part of the operational guidelines and criteria for the new local organizations that are to be set upand are eligible to get access to the grants and credits for irrigation network maintenance and relatedagricultural initiatives. There will not be a free-standing EA or EMP for the Project.

The Project will support the basin management agencies in developing a generic Operational Manual orFramework on River Basin Management (to be acceptable to the Bank) that will guide water managers in

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dealing with competitive uses, environmental and biodiversity aspects of integrated water management, andwith vulnerable isolated indigenous communities. This framework will be ready before the start of Phase IIof the APL. The framework will emphasize the ways in which to identify and assess alternative options. Itspreparation will be conducted under the supervision of the National Water Council or the National SteeringCommittee for Water Resources. It will then be mainstreamed in the operational procedures of the riverbasin agencies. The subscription to the principles and application of these frameworks will be part of theconditionalities for regional and local governments to receive access to the loan proceeds in the Phases Hand HI.

II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguardpolicies, with an emphasis on potentially affected people.The Project (Phase I of the APL) would generate broad benefits for the rural and urban populations onJava because it aims at developing and mainstreaming "institutional models" that can be replicated beyondthe geographic limitations of the Project area. The primary target population comprises:

* The water users in the Project's river basins in the Project provinces, notably the farmers, urbanand rural settlements, industries, and the communities that depend for their livelihood on water from therivers.* Farmers as well as landless people, and by extension the rural population, in the Project areas, asthey will benefit from better water availability, from programs to assist in strengthening the rural economy,and from increased productivity and income.* The population on Java as food security and environmental quality will improve.

Poor farm families are likely to benefit directly from the more reliable irrigation service and increasedincome, and indirectly from improved access to agricultural infomnation and extension services, and newbusiness opportunities. In addition, because the Project and the long-term APL Program would helpestablish Water Resources Councils at National, Provincial and River Basin levels which will provide aforum for policy making and/or regulatory activities in which the governmental and non-governmentalstakeholders will participate, they should improve the levels of govemance quality, transparency andaccountability in the sector. In irrigation management, the Program will help establish Water UserAssociations which pre-eminently are "stakeholder"-based organizations. The Councils, as well as theIrrigation Commissions that the Project will help establish, will have stakeholder representation, and beauthorized to review work plans and budget proposals.

An important part of the preparation for the institutional arrangements that WISMP I intends to put inplace, and which emerges from the water sector reform program the govemment initiated in 1999, was aSectoral EA based on extensive public consultations at national, provincial, kabupaten, village, and wateruscr levels across the country (this was assessed as "very satisfactory" by the Bank's Quality AssuranceGroup). Currently, public consultation has become a standard feature of the water sector activities and itwill as such be continued during the Project as well as subsequent Phases. The consultations are carriedout by NGOs with a history of independence and sectoral experience. During implementation of theProject, public consultations will be applied for river basin planning and for all strategic frameworkdevelopment.

E. Safeguards Classification (select in SAP). Category is determined by the highest impact in any policy. Oron basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy istriggered the provisions of that policy apply.

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] SI. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks inmanagement of one or more safeguard areas

[X] S2. - One or more safeguard policies are triggered, but effects are limited in their impact and aretechnically and institutionally manageable

[ ] S3. - No safeguard issues[ ] SF. - Financial intermediary projects, social development funds, community driven development or similar

projects which require a safeguard framework or programmatic approach to address safeguardissues.

F. Disclosure Requirements

Environmental Assessment/Analysis/Management Plan; Expected ActualDate of receipt by the Bank 4/15/2003 4/15/2003Date of "in-country" disclosure 4/17/2003Date of submission to InfoShop 4/17/2003Date of distributing the Exec. Summary of the EA to the Executive Not Applicable Not ApplicableDirectors (For category A projects)

Resettlement Action Plan/Framework: Expected ActualDate of receipt by the Bank 4/15/2003 4/15/2003Date of "in-country" disclosure 4/17/2003Date of submission to InfoShop 4/17/2003

Indigenous Peoples Development Plan/Framework: Expected Actual

Date of receipt by the Bank 4/15/2003 4/15/2003Date of "in-country" disclosure 4/17/2003Date of submission to InfoShop 4/17/2003

Pest Management Plan: Expected ActualDate of receipt by the Bank Not Applicable Not ApplicableDate of "in-country" disclosure Not Applicable Not ApplicableDate of submission to InfoShop Not Applicable Not Applicable

Dam Safety Management Plan: Expected ActualDate of receipt by the Bank Not Applicable Not ApplicableDate of "in-country" disclosure Not Applicable Not ApplicableDate of submission to InfoShop Not Applicable Not Applicable

If in-country disclosure of any of the above documents is not expected, please explain why.

Signed and submitted by Name DateTask Team Leader: Guy J. Alaerts 04/16/03Project Safeguards Specialists 1: Thomas E. Walton/Person/World Bank 6/28/2003Project Safeguards Specialists 2: Sulistiowati Nainggolan/Person/World Bank 6/29/2003Project Safeguards Specialists 3:

ADproved by: Name DateRegional Safeguards Coordinator: Glenn S. Morgan 6/30/2003Sector Director Mark D. Wilson 4/16/2003Comments

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Note: It was agreed that the Environmental Guidelines will be prepared for the project, in lieu of theEnvironmental Assessment/Analysis/Management Plan. Please refer to the dates indicated under theEnvironmental Assessment/Analysis/Management Plan.

Regional Safeguards Unit Director Teresa Serra 6/30/2003