TAPP TOR W3B-20 Biccon Citra Metro Biogas Power Project

MILLENNIUM CHALLENGE ACCOUNT-INDONESIA

GREEN PROSPERITY PROJECT

Technical Assistance and Project Preparation Grants

TERMS OF REFERENCE FOR DETAIL PROJECT DEVELOPMENT ASSESSMENT

AND IMPROVEMENT FOR

BICCON CITRA METRO BIOGAS POWER PLANT (Project Number W3B-20)

September 17, 2015

Table of Contents

Acronyms and Abbreviations

1 Background ...........................................................................................................................................................1

2 Scope of Work ......................................................................................................................................................2

General Parameters ................................................................................................................................... 2 Identified Gaps ............................................................................................................................................ 3

2.2.1 Technical Gaps ............................................................................................................................ 3

2.2.2 Environmental & Social Gaps ............................................................................................... 3 2.2.3 Social and Gender Gaps ........................................................................................................... 3

Key Tasks ....................................................................................................................................................... 4 2.3.1 Initial Review and Work Plan ............................................................................................... 4

2.3.2 Surveys and Analysis ............................................................................................................... 7 2.3.3 Detailed Improvement of Project Development .......................................................... 7

2.3.4 Final Report of Project Review and Detail Improvement of Project

Development ................................................................................................................................................ 8

3 Timelines and Deliverables ......................................................................................................................... 10

Commencement Date and Period of Implementation ............................................................. 10 Quality Assurance ................................................................................................................................... 10

Table of Deliverables ............................................................................................................................. 10

4 Key Personnel & Expertise Requirements ............................................................................................. 11

5 Standard Compliances Requirements ..................................................................................................... 14

Mechanical and Electrical Compliances......................................................................................... 14

Construction Compliances .................................................................................................................. 14 Interconnection Compliances ............................................................................................................ 14

6 Lifescape-Landscape (L-L), Environment, Social and Gender Analysis ....................................... 15

L-L Analysis................................................................................................................................................ 15

6.1.1 Scope of L-L Analysis ............................................................................................................ 16

6.1.2 Indicative Tool Package for Field Work ........................................................................ 18 Environment and Social Requirements ......................................................................................... 19

6.2.1 International Finance Corporation Performance Standards (IFC PS) ............. 19 6.2.2 Environmental and Social Impact Assessment (ESIA) ........................................... 20

6.2.3 Environmental and Social Management Plant (ESMP) .......................................... 21

6.2.4 Environmental and Social Performance Datasheet ................................................. 21 6.2.4.1 Guidance to Prepare the Environmental and Social Performance

Datasheet 21 6.2.4.2 Basic Information .............................................................................................. 21

6.2.4.3 Environmental and Social Performance Issue and Management . 22 6.2.4.4 Disclosure Requirement ................................................................................. 22

Social and Gender Integration Requirements ............................................................................. 22

6.3.1 Rationale for Social Inclusion and Gender Integration in Green Prosperity

(SGIP) 22

6.3.2 Key Social and Gender Activities needed for GP ....................................................... 23 Deliverables ............................................................................................................................................... 23

Result Template ....................................................................................................................................... 24

Appendix A Indicative Table of Identified Key Risks Summary

Appendix B Indicative Table of Contents for Detail Project Review

Appendix C Indicative Table of Contents for Detail Improvement of Project Development

Acronyms

Acronyms and Abreviations

AMDAL Analisis Mengenai Dampak Lingkungan Hidup

ANDAL Analisis Dampak Lingkungan

BI Bank Indonesia

CBO Community-Based Organization

CfP Call for Proposal

COD Commercial Operation Date

CSR Corporate Social Responsibility

EPC Engineering, Procurement & Construction

ERR Economic Rate of Return

ES Environmental Services

ESIA Environmental and Social Impact Assessment

ESMP Environmental and Social Management Plan

ESMS Environmental and Social Management System

FA Financial Agent

FS Feasibility Study

GHG Greehouse Gas(es)

GOI Government of Indonesia

GP Green Prosperity

GP Facility Green Prosperity Facility

IC Investment Committee

IPP Independent Power Producer

MCA-Indonesia Millennium Challenge Account - Indonesia

MCC Millennium Challenge Corporation

NGO Non-Governmental Organization

NREL National Renewable Energy Laboratory

OM Operation & Maintenance

PFS Pre-Feasibility Study

PLN PT Perusahaan Listrik Negara (Persero)

PMC Project Management Consultant

RE Renewable Energy

SGIP Social and Gender Integration Plan

SLO Sertifikat Layak Operasi

SNI Standar Nasional Indonesia

SPPL Surat Pernyataan Pengelolaan Lingkungan

SPV Special Purpose Vehicle

TA Panel Technical Appraisal Panel

TAPP Technical Assistance & Project Preparation

TOR Terms of Reference

TIP Trafficking in Persons

UKL Upaya Pengelolaan Lingkungan Hidup

UPL Upaya Pemantauan Lingkungan Hidup

1

1 Background

TAPP Grant is being provided on a need-basis to strengthen project preparation to meet MCA-

Indonesia requirements, address any gaps identified by MCA-Indonesia as being required to be

rectified to meet GP requirements and improve the quality of the required Project’s Design and

Implementation. MCA-Indonesia has agreed to support the TAPP activities of the proposed Project,

viz. Biccon Citra Metro Biogas Power Plant [Project Number: W3B-20] with the overall scope of work

as defined in this document. The flow diagram of TAPP Grants is illustrated below.

MCA Indonesia

No Objection

(NO)?

Acceptable

Deliverables?

TOR of

TAPP

Grants

Nominated

Lead

Consultant/

Consultants

TAPP Grants

Assignment

Evaluation of

TAPP Grant

Deliverables

Yes

No

TOR RE Co

Financing

Grants

MCA Indonesia

No Objection

(NO)?

Yes

No TAPP Grants

Termination

Nominated

Lead

Contractor/

Contractors

Project’s

improvement

works

Yes

No

Compliance to

Conditions

Precedent &

performance

milestones

Acceptable

performance?

Yes

No RE CF Grant

terminated

RE CF Grant

disbursed

Accepted

TAPP Grants

Deliverables

Detail

Project

Improvement

2

2 Scope of Work

General Parameters This ToR has been provided to articulate MCA-Indonesia’s expected focus, direction and

organization of the consulting work undertaken though this TAPP Grant. It is not meant to limit any

necessary review, except where specified, of any Project proposal to be funded by MCA-Indonesia. It

is the responsibility of the Grantee to provide MCA-Indonesia with information related to:

� Capability of the proposed Project design and construction to meet production and operation

requirements;

� Conformance of the Project with good engineering practice and industry standards (design

criteria). As per the CfP, the relevant standards are PLN’s engineering, construction and

operating standards;

� Sufficiency of the Project structure related to construction and operations; Adequacy of the

inputs, parameters, assumptions, and reasoning of the Project pro forma analysis;

� Risk assessments and allocation of risks to the Project, to local communities, and to the natural

environment.

� Examination of the logistics in delivery of all construction plan, equipment, construction materials,

etc. to ensure that the Project can be constructed and operated.

� At all times, the overriding conditions of the Project as declared in the CfP should be adhered to.

It is expected that the Deliverables of the assignment funded through TAPP Grants shall include

reports with text, duly supported by underlying data, calculations and analysis. Besides this ToR,

please also refer to the CfP for further details on expected work. These shall include, but not be limited

to, the following:

(1) Cost/benefit analysis and Economic Rate of Return (ERR) in excel format split out in years 1-20

as well as a separate tab with the cost estimate for required Project inputs that the RE Grant

will support, split out by: Project management, training and reporting; civil works; plant

and equipment (mechanical and electrical equipment);

(2) Financial model in MS excel format, accompanied by an assumptions book detailing the key

assumptions made for projecting the key financial statements, assessing the financial viability and

hence determining the RE Co-Financing Grant amount; and an instructions manual to facilitate

easy usage;

(3) Project schedule (MS Project or excel) including all necessary up-front time required to finalize

design and obtain permits, as well as time required to commission facilities and train staff

responsible for O&M and management;

(4) All calculations performed to size plant, equipment and assess resource base, etc.;

(5) Site plans (in .pdf format) showing the proposed Project and associated features (roads,

distribution wiring, etc.);

(6) Outline specifications (in .doc format) for civil, mechanical and electrical works and equipment;

and

(7) Relevant data sheets and/or survey results aggregated as required.

Section 1

Insert Section Title

3

Identified Gaps Through Technical Appraisal Panel (TAP) and Project Survey Visit activities, MCA-Indonesia has

identified some key gaps within the project and/or its project preparation documents. These are listed

below. MCA-Indonesia does not claim that this list is exhaustive and expects the Detailed Project

Review to place forth a comprehensive description of the key gaps.

2.2.1 Technical Gaps 1) Weakness on COD Analysis/Study, Energy Analysis, Topography Data and Geotechnical

Study. The availability of Fresh Fruit Bunch (FFB) supply is from own plantation and also

depends on external suppliers. Even though the mill is under expansion from 30 TPH to 60

TPH, the historical FFB data shows a declining trend and feedstock security is an issue.

Within the COD analysis, there is neither description nor data that the POME (Palm Oil Mill

Effluent) flow rate has been measured by flow meter. There is also lack information on POME

COD level data. Thus, the energy analysis becomes inconsistent in regards to potential power

generation. It is not clear potential power generation in MWh/year will be sold to PLN and

parasitic load biogas system including gas engines. Topography analysis data is not clear.

Geotechnical Study has not been carried out. In general the project uses an outdated

Feasibility Study. So it is necessary recalculate the proposed power plant capacity to match

the availability of feedstock

2) Weakness on Basic Design, Front End Engineering Design (FEED), Financial Analysis,

Detail CAPEX and OPEX calculation to optime the invesment.

3) Weakness on Project Milestone and Schedule.

4) No Interconnection Study.

2.2.2 Environmental & Social Gaps 1) The project is currently under process to obtaining the UKL-UPL document and

environmental permit approval from Muaro Jambi District government.

2) No land acquisition is needed. The biogas (POME) power plant facilities will develop in

company own land. However, it is necessary to ensure that the land acquisition process of

the existing land is clear and no potential conflict with others parties.

3) The feasibility study document provided a limited information on environmental and

social impacts like economy, environmental and technology transfer.

4) Due to unavailability of UKL-UPL document during the technical review stage, then due

diligence should be conducted prior to Grant Agreement.

5) A gap analysis is required to ensure that the project will meet the IFC Performance

Standards and other related study

6) The project must strengthen the ESIA/ESMS document to accommodate the aspect which

is not covered in UKL-UPL, such as organization capacity and competency, LARAP, IP study,

stakeholder engagement and grievance mechanism.

7) Limited information of pollution prevention in FS document such as the mitigation in

construction and operation of biogas plant for air pollution and waste water leaking.

2.2.3 Social and Gender Gaps 1) The proposal SGIP is developed with a sufficient preliminary Social and Gender Assessment.

The benefit sharing is not clearly presented. The target is set as 7% for the community to get

the benefit and fund for much needed assistance.

2) There are key social issues such as the oil palm plantation has the contribution to change the

farming behavior from traditional farmer to day laborers.

Section 1


4

3) Is there any potential conflict between the Melayu Jambi and Javenese in terms of access and

benefit? How the project will address this in the project design and approach, especially with

regards to jobs creation in POME?

4) Affordability of the estimated IDR 75,000/month electricity cost needs to be investigated.

5) A committed community development plan as required to meet MCA-Indonesia’s goals has

not been set up, it has to be in coordination with local people including marginalized people

and women.

6) The project ensures that local people, vulnerable community, and women will be involved in

community development plan.

7) Support livelihood alternative

8) Employment creation: during construction phase there will be construction jobs, and around

10 – 12 local people will be hired as permanent staff for energy project.

9) Benefit sharing is done through CSR, through capacity building and initiate household to

adopt strategies of lumbung pangan and economic development for women.

10) The SGIP mentions that collaboration with local NGOs and organizations will be forged in the

implementation of social inclusion and gender targeted activities.

Key Tasks Following section presents the scope of work and key tasks that MCA Indonesia expects under this

TAPP Grant Agreement.

2.3.1 Initial Review and Work Plan The scope of work for the initial project review shall include below studies:

I. Initial Project Review

The initial project review should be based on a desk review of all existing project

preparation documents and a site visit. In this context, following aspects must get covered:

a. Legal Aspect Review

Legal Aspect Review covers document examination and document review. Documents

related to Biogas power projects to be examined are as follows but not limited to:

� Permit in Principle Letter from Local Government to do the survey, pre-FS and FS,

and planning investment;

� Permit for Water Usage from Local Government or Head of Natural Resources

Ministry of Environment within the region/district;

� Permit to use the Location for building the facilities from Local Government

or other related authorities;

� General Electricity Supply Business Permit (IUPTL) from Directorate

General of Electricity - Ministry of Energy and Mineral Resources or Regent or Mayor;

� Certificate of Land Ownership for land used by this project;

� Permit for access road to land: If access is restricted (private, not public), permit

to use access road from all the land owners in whose land access road falls.

� Non-Technical Recommendation from Local Government;

� Spatial Utilization Permits;

� Development Permits ;

� AMDAL (Analisa Mengenai Dampak Lingkungan) or Full Environmental

Impact approved by relevant authority, if applicable;

� Environmental Management Effort or Upaya Pengelolaan Lingkungan

(UKL) and Environmental Monitoring Effort or Upaya Pemantauan Lingkungan

(UPL) approved by relevant authority, if applicable;

Section 1


5

� Environmental Permits issued by relevant authority;

� Other required and related permits.

b. Project Structure, Company and Sponsor Aspect Review

Project Company and Sponsor Aspect Review cover the following review items:

� Identification of Project Sponsor/Shareholders and percentage of ownership of

each shareholder in the Project Company;

� Examination of proper legal form of Project Sponsor/Shareholders which include

the licenses/permits to develop and operate an RE project;

� Review any shareholders agreement (structure, voting procedure, etc.);

� Review changes on shareholders’ structure with the entry of new shareholders

(increases of capital, subscription of new shares);

� Review management of the company and brief biography of each manager and Board

member;

� If the sponsor is short in equity (MCA-I’s CFP stipulates that minimum equity should

be 20% of the total project cost), check and review if the project company has any

plan to access the equity market or to approach other equity investors in the future;

� Other required and related information on Project Structure, Company and Sponsor.

c. Project Contractual Structure Aspect Review

� Check and review the PPA (if the PPA is in place);

� Check and review the EPC Contract/Contracts (what are the salient features of the

contract: lump sum or cost plus fee, etc.);

� Check for equipment supply agreement guarantees/ warranties, and after sales

support;

� Check Contractor Guarantees /Warranties;

� Check and review Build, Own, Operate, and Transfer (BOOT) or Build, Operate,

Transfer (BOT) Agreement or BOO Agreement (if applicable);

� Check and review interconnection study and transmission line arrangement;

� Any related review report form consultants and or independent engineers.

d. Technical Aspect Review

The Technical Aspect Review should identify and evaluate the following items in the

project formulation:

� Definition of design criteria that address construction and operating risks based on

sufficient physical site data;

� Project access plans and issues;

� Detailed primary energy analysis of either gauge data or estimated primary energy

availability including daily, monthly and annual variability;

� Supporting energy analysis that includes COD variability, Biogas production

variability, accurate efficiency of project, power losses and appropriate outage/loss

evaluation;

� Topographic studies to support project layout, design and construction;

� Geotechnical analysis including specific site evaluation for the digester, flare

foundation, gas cleaning system and powerhouse;

� Seismic considerations for the project design;

� Evaluation of equipment alternatives and quality; Specifications of the selected

equipment;

� Project drawings that show the features as designed for the site in accordance with

the design criteria;

� Project scheduling including the effect of seasonal flow variation;

Section 1


6

� Thorough design of distribution and interconnection;

� Operations and maintenance plan;

� Project Organization and Quality Control Procedures;

� Independent Engineers/Engineers Reports;

e. Financial Aspect Review

The purpose of the Financial Aspect Review is to confirm cost reasonableness and

expected financial returns of the project submitted by the applicant are accurate, and that

the project will be able to operate at minimum up to maturity of PPA and be able to repay

its lenders and provide benefit sharing to the community. The sequence of areas to

investigate under this framework is:

� Appraise project asset already invested

� Project Budget and Cash Flow Estimate. Cost estimates and cash flow forecasts

based on market practice, experience, bids, contracts and schedule duration;

� Review (proforma) financial statements/model:

– Revenues

– Capital Costs

– Operational Costs

– Loan repayments

– Benefit Sharing as per CfP requirement

– Shareholder Dividends

– Taxes

– Financial ratios

– Others

� Additional Checks (Cash Balance check, not validated assumption check,

Contingent liabilities, etc.)

� Check the capacity of the Applicant to provide collateral as required by lenders

� Any related report from financial consultants/independent consultants.

� Calculate the project ERR and confirm on it’s value meeting the minimum MCA-

Indonesia threshold of 10%.

f. Environmental and Social Aspect Review

The review shall include assessment of the following:

� Compliance with MCA-Indonesia’s guiding documents and policies (Environmental

and Social Management System, Stakeholder Engagement Plan, etc.).

� Compliance with prevailing Indonesia environmental regulations and takes into

consideration potential social impacts.

� Implementation Feasibility; includes the practicality of the actions required to

manage the environment and social aspects of proposed project activities,

components and associated facilities, and to gauge their impact on the overall timing

of the project implementation within the GP time –window.

� Any environmental and social aspect report from consultant/independent engineer.

g. Social And Gender Aspect Review

� Compliance with MCA-Indonesia’s guiding documents and policies (Social and Gender

Inclusion (SGIP), etc.).

� Any SGIP aspect report from consultant/independent engineer.

h. Site Visit to the project location, interviews with related stakeholders and request

for further information from related stakeholders.

Section 1


7

The purpose of these activities is to verify the project location, sitting, design and risks;

and to confirm and ensure the accuracy of project documents (permits, company deeds,

feasibility study, front end engineering design/detail engineering design, etc.). MCA-

Indonesia anticipates that upon award of the TAPP Grant, packages of all detail project

review and supporting documentations, along with other updated versions of the design

and implementation (construction) documentations would be provided.

i. Summary of Identified Key Risk Matrix & Risk Mitigation Measures/Plan Table for

each aspect above. Please see the indicative table of Summary of Identified Key Risks in

the Appendix A.

j. Review of Project’s proposed Implementation Plan.

Appendix B provides Indicative Table of Contents for Project Review. Grantee may use this

table as guidance or reference to clarify further detail scope of work of Project Review.

II. Work Plan

Referring to the above Project Review, Consultant is expected to identify the gaps between the

Project and MCA-Indonesia Standard and establish an approach methodology and work plan.

This should include a full explanation of the required site investigations, data gathering tools,

surveys, analysis and reporting.

2.3.2 Surveys and Analysis Based on the Work Plan, the Consultant shall conduct the required site and geotechnical

investigations, asset condition surveys, stakeholder surveys and corresponding analysis. These shall

include, among others, the following:

I. COD Analysis/Stidy, topography surveys, field mapping and confirmation;

II. Geotechnical investigations and surveys;

III. Primary Energy (POME based biogas) analysis;

IV. Interconnection Study;

V. Others, as may be identified in the Work Plan.

2.3.3 Detailed Improvement of Project Development Referring to the identified gaps and site surveys and analysis, the Consultant shall propose

improvements in the project design, engineering and other areas. Some of the areas of improvement

that have been identified, but are indicative only, are mentioned below.

a. Improvement of COD analysis.

b. Iprovement of Primary Energy (POME Based Biogas) Analysis.

c. Improvement of Topography Study.

d. Improvement of Energy Production, Energy Loss estimation and Installed Capacity.

e. Provide Seismic Study/Analysis.

f. Improvement Basic Design and FEED.

The design must be carried out in order to reduce operational risk of the construction of the power

plant, identified the risk and improve the design according to the risk findings.

g. Improvement Detail Total Project Cost estimation, Financial Analysis financial model and

projections.

h. Geotechnical Study.

The study intended to verify and investigate detailed subsurface structure in digester, flare

foundation, cleaning systemand power House. The study need to conduct full geo electrical study

Section 1


8

and verify by geotechnical boring. (Other method for soil investigation like Seismic, Ground

Penetrating Radar, DC resistivity are allowed, depend on the condition of soil).

i. Economic analysis1, economic model and projections.

j. Improvement Project implementation plan (MS project or excel based) duly focusing on

managing completion and performance risks.

k. Interconnection Study.

l. EPC Contractor/Contractors and/or suggestions on strengthening EPC/O&M contractors.

The nominated/selected qualified EPC Contractor/Contractors must provide proven experience

and track record on biogas power plant project construction. It must include Contractors All Risk

(CAR) insurance.

m. L-L Analysis Findings Report (please refer to section 6.1).

n. Environmental and Social Management Plan (please refer to section 6.2 Error! Reference

source not found.).

o. Project’s Social and Gender Integration Plan (please refer to section 6.3 Error! Reference

source not found.).

p. Benefit Sharing throughout the project life will engage a pre-defined NGO/institution that will

be stated in the RE Co-financing Grant Agreement. Determination of the NGO/institution and

community development program is taken through the L-L. (please refer to the CfP and section

6)

q. Revised project implementation plan and budget documenting the required design and

implementation changes (please refer to section 6.4 )

r. Other project preparation gap filling studies

The Consultant is expected to utilize its independent expertise to recommend the detailed

improvements. An indicative table of contents for presenting the report on detailed improvement of

project development is presented in Appendix C.

2.3.4 Final Report of Project Review and Detail Improvement of Project Development

The final report will consist of the Detail Project Review as guided in Appendix B and Detail

Improvement of the Project Development, including the studies undertaken for the Project

Improvement. Detailed Improvement of the Project Development should also provide:

a. Suggestions on strengthening EPC/O&M contractors.

b. Contractor(s) scope of work for the project improvement that will be funded

partially/wholly by RE Grant.

c. Provide cost estimation of the project improvement

d. Define required experiences and capabilities of the contractor(s).

e. Nominates contractors to do the project improvement.

f. Provide technical and commercial contracts, offers and guarantees/warranties.

Appendix C provides Indicative Table of Contents for Detail Improvement of the Development. It may

be used as guidance to clarify further detail scope of work of Detail Improvement of the Project

Development.

1 In mid-June 2015, MCA-Indonesia undertook preliminary economic analysis. The Economic Rate of Return (ERR)

was estimated by: 1) determining the economic cost savings annually over the project life to PLN, via the proposed

project as opposed to via PLN generation capacity; and 2) then calculating the ERR determined by the stream of

estimated economic cost savings. The underlying data and the ERR analysis will need to be updated/ re-validated.

Section 1


9

Section 1


10

3 Timelines and Deliverables

Commencement Date and Period of Implementation From the date of the signature of the TAPP Grant Agreement, the Grantee will have one week to

mobilize and deploy its consultants. The assignment shall be completed within a period of twelve (12)

weeks, commencing from the Effective Date of the TAPP Grant.

Quality Assurance Contractor/Consultant shall have in place and maintain a Quality Control Plan (QCP) that covers,

as a minimum, how Contractor/Consultant intends to meet the requirements of all performance

objectives, monitor and proactively manage work requirements. It shall also include the mechanism

by which the related stakeholder will be notified of performance related incidents that are likely to

affect quality of services or impact mission accomplishment. Contractor/Consultant shall provide

a copy of its QCP to the MCA Indonesia within 7 days of the Effective Date.

Table of Deliverables The deliverables for the subject as enumerated below shall be submitted in three (3) hard

copies and one (1) electronic/soft copy to MCA Indonesia for review and for monitoring purposes

and payment processing. MCA Indonesia expects the following deliverables:

Nº Deliverable Payment$

Time from

Effective Date

1 Work Plan@ and Initial Project Review based on desk

review and site investigation, refer to Section 2.3.1

20%

of TAPP Grant

2 (two) weeks

2 Surveys and Analysis Results Report, refer to Section

2.3.2

20%

of TAPP Grant

5 (five) weeks

3 Detailed Improvement of Project Development Report,

refer to Section 2.3.3

30%

of TAPP Grant

10 (ten) weeks

4 Final Report, refer to Section 2.3.4 30%

of TAPP Grant

12 (twelve) weeks

@ The proponent’s work plan will include a detailed, project-specific work program for the

assignment, including proposed tables of contents modified from the provisional initial Project

Review and/or Detail Improvement of Project Development ToC’s (presented in the annex) to best fit

the specific project setting and characteristics. It will also include a target schedule for undertaking

the works and reviews on a weekly basis to indicate the planning required and systematic approach

to the assignment.

$ Please note that all payments shall be made only after the deliverable is reviewed and accepted by

MCA Indonesia. If there are any concerns on the adequacy, completeness, quality and/or timeliness of

the deliverable then MCA Indonesia may instruct the Grantee and/or its Consultant to rectify the

defect and resubmit the deliverable.

Section 1


11

4 Key Personnel & Expertise Requirements

MCA-Indonesia expects the Grantee to appoint one firm as Lead Consultant that is responsible for

ensuring quality and timely delivery of the TAPP activities. The Consultant shall assemble a team of

both key and other personnel with the required expertise. Prior to the signing of the Applicant’s

TAPP Grant Agreement, all CVs of the proposed staff must be submitted to MCA-Indonesia.

The Consultant is expected to propose adequate staff to best achieve the objectives of the TAPP grant.

At the minimum, following positions need to be staffed by the Consultant.

Role Qualifications

Team Leader • Shall be an independent professional with strong organizational skills,

preferably with a Bachelor’s degree in engineering, with a Master’s degree in

engineering management, economics or other similar fields.

• Must have extensive knowledge of international best practices in Biogas power

plant system design and consulting, power system planning, economics,

business models, institutional assessment, contract procedures and project

follow-up.

• Have a proven track record of successfully managing and coordinating as team

leader a diverse group of professionals in accomplishing studies or projects of

similar nature and complexity to this assignment.

• A minimum of 15 years of working experience in implementation of energy

projects is desired.

• Shall prepare a general work plan of the study and coordinate all the activities of

the Consulting Team.

• Shall submit the work plan and shall inform of any changes or variations.

• Must be knowledgeable on Value Engineering.

• The Team Leader can be supported with technology specific expertise by a sub-

consultant which has extensive experience.

Biogas Power

Project

Development

Specialist

• Preferably with a Master’s degree in engineering. 10 to 15 years’ experience in

Biogas-related engineering and construction, including alternatives analysis, primary

design, construction oversight, cost estimating, scheduling and financial analysis.

• Significant experience, for example in areas of planning, feasibility studies, design

and project assessment, due diligence and supervision related to Biogas power

generation and distribution.

• Appreciation of due diligence requirements for sound Biogas power projects.

• Ability to communicate technical material effectively.

• Proven ability to lead/work in multi-disciplinary teams.

• Extensive knowledge and understanding on Renewable regulatory framework and

project development condition in Indonesia.

• Fluency in English and Bahasa Indonesia required.

• Good listening skills, ability to dialogue with key stakeholders with diplomacy and

tact.

• Willingness to travel for project preparation, assessment and supervision.

Biogas Power

Project

Development

Specialist

• Preferably with a Master’s degree in engineering. 10 to 15 years’ experience in

Biogas-related engineering and construction, including alternatives analysis, primary

design, construction oversight, cost estimating, scheduling and financial analysis.

• Significant experience, for example in areas of planning, feasibility studies, design

and project assessment, due diligence and supervision related to Biogas power

generation and distribution.

• Appreciation of due diligence requirements for sound Biogas power projects.

• Ability to communicate technical material effectively.

• Proven ability to lead/work in multi-disciplinary teams.

Section 1


12

Role Qualifications

• Extensive knowledge and understanding on Renewable regulatory framework and

project development condition in Indonesia.

• Fluency in English and Bahasa Indonesia required.

• Good listening skills, ability to dialogue with key stakeholders with diplomacy and

tact.

• Willingness to travel for project preparation, assessment and supervision.

Senior Biogas

Power Plant

Engineer

• Shall be an engineer, preferably with a Bachelor’s/Master’s degree in

Civil/Mechanical/Power or relevant engineering.

• A minimum of least 10 years work experience in design consulting in Biogas

Power Plant is desired.

• Knowledge of international best practices in Biogas Power Plant facilities design

and consulting.

Power Generation

& Distribution

System Engineer

• Must have undergone education or training in electrical engineering or relevant

engineering fields, preferably at the Master’s degree level, coupled with at least

10 years of relevant experience (particularly in biomass power based systems).

• Experience in distribution network design and operations are required.

• Knowledge of international best practices in power generation project planning,

investment, operations and maintenance, electric distribution system planning,

evaluation and disaggregation of losses, system loss reduction techniques,

maintenance, and power systems integration is critical.

Civil Engineer • Must have education or training in civil or structural engineering, preferably at

the Master’s degree level, coupled with at least 15 years of relevant experience

in a range of civil works projects including ports, power generation plants,

pipelines, roads at the planning and study stages.

• Extensive knowledge of international best practices in civil works and

infrastructure requirements to support energy projects is critical.

Cost Engineer • Must have appropriate educational background with at least a graduate level

degree in Economics or Engineering.

• Must have a minimum of 10 years of energy sector experience developing cost

estimates for Biogas power plant projects.

• Must have access to cost models and historical in-house databases for

estimating quality and cost of materials.

Finance &

Economic

Specialist

• Must have an appropriate educational background with at least a graduate

level degree in accounting, finance, public policy, management or a closely

related field.

• Must have a minimum of 10 years of energy sector experience conducting

financial and economic analysis, developing economic and financial models,

and undertaking tariff and cost of service studies.

• Must possess the ability to work under imperfect or incomplete information

and must have sufficient experience for financial modeling.

L-L Analysis

Implementation

Lead#

• Expertise needed in mobilizing and managing large scale field work, data

collection, analysis and report writing and at least 10 years’ experience in

conducting and/or managing environment and social assessment in

development sector, qualitative data collection and analysis, and participatory

rural appraisals.

• Knowledge and experiences in renewable energy sector, community

development work, livelihood assessment, ethnic (adat) communities and

poverty assessment will be added advantage.

Environmental

Specialist • Must have an advanced degree in environmental engineering, environmental

sciences, environmental management or related fields at Master’s degree level

or higher.

• Must have at least 10 years of relevant work experience in the area of

coordination of multidisciplinary environmental baseline studies,

environmental impacts assessment, environmental feasibility study,

environmental management system including stakeholder and environmental

consultations.

Section 1


13

Role Qualifications

• Must have experience in conducting ESIA or AMDAL studies in Indonesia, and

extensive knowledge of international best practices in environmental impact

assessment and mitigation.

• Experience in applying the part or all IFC Performance Standards (in various

stage of the project) is mandatory, and familiarity and experience with

Lifescape-Landscape Analysis is desirable.

• Must be able to work closely with local counterpart personnel and the public at

large, and should have fluency in English, proficiency in Bahasa Indonesia, and

excellent writing, research and analytical skills.

• Familiarity with Indonesian forestry and forestry conservation laws also

desirable.

Land Acquisition

and Resettlement

Specialist

• Must have a degree, preferably advanced, in the social sciences coupled with at

least 10 years of international experience in the preparation of resettlement

action plans.

• Must have demonstrated experience in developing and implementing a Land

Acquisition and Resettlement Action Plan (LARAP) preferably in Indonesia.

• Work experience related to Indonesian power sector would be preferred.

• Must be familiar with application of international best practice, including IFC

Performance Standards 5 or World Bank resettlement policy (OP 4.12) and

methodology, preferably with experience relevant to energy projects.

Social & Gender

Specialist • Should have an advanced degree in social sciences or a related discipline

(anthropology, sociology, women’s studies, public policy, community

development, etc.) coupled with approximately 10 or more years of experience

in social and gender related issues in an international development context, with

demonstrated expertise in conducting and assessing social and gender analysis

and gender integration in projects.

• Must have demonstrated experience with social and gender studies, community

development, community/stakeholders consultation, indigenous people study

related to the renewable Energy Project.

• Must have expereince conducting ESIA or AMDAL studies in Indonesia, and

extensive knowledge of international best practices in social impact assessment

and mitigation.

• Experience in applying the part or all IFC Performance Standards (in various

stage of the project) is mandatory (in particular those relevant to social and

gender issues), and familiarity and experience with Lifescape-Landscape

Analysis is desirable.

• Should have demonstrated experience using participatory development

approaches and consultative methods.

• Must be able to work closely with local counterpart personnel and the public at

large, and should have fluency in English, proficiency in Bahasa Indonesia, and

excellent writing, research and analytical skills. # Please note that the position/ role of L-L Implementation Lead can be taken up by either the

Environmental Specialist or Land Acquisition and Resettlement Specialist or Social Development and

Gender Specialist, provided the qualifications mentioned are fulfilled by such other expert.

## In addition to the above mentioned positions, the Consultant shall appoint a field coordinators and field

investigators, as appropriate, to assist/ support the above experts in the assignment. Especially for

conducting field investigation for L-L analysis such field investigators should be provided with adequate

training to conduct focused group discussions with women in the village and preferably 30% of the field

team should be women.

Section 1


14

5 Standard Compliances Requirements

Mechanical and Electrical Compliances All mechanical and electrical components must meet PLN requirement which follow the standards of

SPLN and/or SNI and/or IEC and/or IEEE and/or ANSI and/or BS and/or TUV. All mechanical

and electrical components should have a printing of SNI and/or <LMK> and/or CE and/or FCC and/or

TUV marks. If those marks are not available, the Applicant must provide datasheet or Certificate

of Compliances.

Construction Compliances a. SNI 03-1726-2002 : Earthquake Resilience Planning Procedures For Residential and Building

(Tata Cara Perencanaan Ketahanan Gempa Untuk Rumah dan Gedung)

b. SNI 03-1729-2002 : Planning procedures for Steel construction building (Tata Cara

Perencanaan Bangunan Baja Untuk Gedung)

c. SNI 03-1734-1989 : Planning Procedures and Structure Reinforced Concrete and Walls

Reinforced Concrete For Home and Building (Tata Cara Perencanaan Beton Bertulang dan

Struktur Dinding Bertulang Untuk Rumah dan Gedung)

d. SNI 03-1736-2000 : Planning Procedures for Fire Prevention and hazard prevention on Building

Structure (Tata Cara Perencanaan Struktur Bangunan untuk Pencegahan Bahaya Kebakaran

pada Bangunan Rumah dan Gedung)

e. Other elated compliances.

Interconnection Compliances a. PLN Director Decree No.0357.K/DIR/2014 : Guideline For Interconnection to PLN Distribution

System From Renewable Energy Power Plant (Pedoman Penyambungan Pembangkit Listrik

Energi Terbarukan Ke Sistem Distribusi PLN)

b. SPLN 90-2-1 : 1995 : Biogas Power Plant Commissioning

c. PLN Director Decree No.0475.K/DIR/2010 :Engineering Criteria Design for Electrical

Distribution Network Construction (Desain Kriteria Enjinering Kontruksi jaringan Distribusi

Tenaga Listrik)

d. PLN Director Decree No.0474.K/DIR/2010: Electrical Interconnection Construction Standard

(Standar Konstruksi Sambungan Tenaga Listrik)

e. PLN Director Decree No.0473.K/DIR/2010: Low voltage Network Construction Standard

(Standar Konstruksi Jaringan Tegangan Rendah Tenaga Listrik)

f. PLN Director Decree No.0605.K/DIR/2010: Distribution Substation and Circuit Substation

Construction Standards (Standar Konstruksi Gardu Distribusi Dan Gardu Hubung Tenaga

Listrik)

g. PLN Director Decree No.0606.K/DIR/2010: Middle Voltage Network Construction Standard

(Standar Konstruksi Jaringan Tegangan Menengah Tenaga Listrik)

h. Other related compliances.

Section 1


15

6 Lifescape-Landscape (L-L), Environment, Social and Gender Analysis

L-L Analysis The Landscape-Lifescape (L-L) Analysis is an operational tool derived from the integration of the

Environmental and Social Management System (ESMS) and the Social and Gender Integration Plan

(SGIP). A landscape is a socio-economic and agro-ecological system that consists of natural and/or

human- modified ecosystems, with a configuration of topography, agricultural lands, water-

bodies, vegetation, land use, and settlements that is influenced by the ecological, historical, economic

and cultural processes and activities of the area. Landscape boundaries may be discrete, correspond

to watershed or sub-watershed boundaries, distinct land features, and/or jurisdictional boundaries,

or across such demarcations. Landscape management units are typically clusters of villages nested

within larger yet agro-ecologically and socio-economically comparable areas for any potential

future scale-up. Landscape Analysis is an assessment of the geographical area in which the

proposed GP investments will be implemented and includes desk review and mapping of the

natural resources and land use pattern in the GP Project location areas. The Project location will be

called Investment Landscape (IL), while the surrounding environment impacting on IL will be called

Development Landscape (DL). Lifescape Analysis is a participatory assessment of the people (women,

men and different social groups), institutions (formal and informal) and relationships within, and

with, the landscape. The analysis seeks to understand how social structures and social context affect

the livelihoods of communities and, in turn, shape the natural resources and the potential to manage

them well within a particular landscape. This analysis identifies key social and gender constraints of

proposed GP Project, how to mitigate risks of social jealousy/conflict, and reduce elite capture of

benefits.

In addition to the L-L Analysis Grantees are required to carry out a Project-specific Environment and

Social Impacts Assessment (ESIA). Details on the GP ESMS Tier 2 and ESIA can be found at

http://gp.mca-indonesia.go.id/en/about-gp/economic-rate-of-return-safe-guard/. Depending on

scale and location, the Project might also require an Environmental permit (Ijin Lingkungan), and

necessary assessment (AMDAL or UKL/UPL), or Letter of Commitment for Environmental

Management (SPPL). ESIA is conducted on the basis of the ESDS, and response to GoI and MCC

requirements. The ESIA identifies Project specific environmental and social risks to be mitigated and

these will be included in an ESMP as a compliance tool. Among other things, the L-L Analysis will be

informed by the findings of the ESIA. L-L Analysis and ESIA can be done together or in parallel,

depending on Grantee resources and staffing structure.

Together with the ESIA, the L-L Analysis will strengthen social and economic viability by ensuring

(1) adequate sources of human, social and natural capital, (2) safeguards against unintended or

uninformed social and environmental consequences, and (3) social inclusivity to reduce the risk of

divisive social jealousy for any local communities feeling excluded from the Project. It provides

relevant and practical information to Grantees and other stakeholders about the existing natural

resources, people, their livelihood, institutions and relationships as well as the dynamic relationship

between investment and its surrounding development landscape. The methodology and tasks for

conducting L-L Analysis is the subject of this Guidance and in the following sections.

Section 1


16

This Guidance builds off the approved methodology and budget provided in the proposal.

6.1.1 Scope of L-L Analysis The L-L Analysis is an adaptive, dynamic and iterative operational tool that should operate

throughout the Project development cycle in order to facilitate any needed Project design

adjustment both in the early implementation/start-up phase as well as during the life of the Project as

appropriate. Completing the L-L Analysis and the findings report (using the required template in

Section Error! Reference source not found. below) initially provides a snapshot for a priori risk

identification and improvement of Project design. New major policies and programs, severe weather

events etc., however, may affect the L-L during implementation, and in that case, the analysis should

serve as a tool to inform prompt appropriate adjustments to implementation including the

deployment of mitigation measures.

Applicants are required to conduct an in-depth L-L Analysis no later than 3 months from the date of

effectiveness of the TAPP Agreement in order to improve/expand the preliminary gender, social and

environmental analysis (and accompanying maps) provided in the proposal and inform final detailed

Project design and content/approach of required technical support.

The tasks required for conducting L-L Analysis can be found in Section 6.4 below. The L-L Results

Template in Section 6.5, provides the required format to present the findings of the L-L analysis

indicating how the landscape and the Lifescape upon which the GP investment depends and which in

turn is affected by it in ways which simultaneously and sustainably reduce poverty through local

economic growth as well as reducing carbon emissions. References can be made to more detailed

relevant studies, maps, photos, and other illustrations presented at the end of the template.

Investment-relevant results are placed in the template boxes provided each with guiding topics and

questions. The preferred methodology and indicative tool kit for conducting field work is provided.

There are four (4) sets of tasks required to complete the L-L Analysis, including a desk literature

review and participatory rural field work as described in more detail below.

Section 1


17

Task 1: Finalize Work Plan and Methodology

Building on the preliminary environment, social and gender analysis, finalize the proposed L-L

Analysis Work plan and Budget included in the proposal. This will include confirming key members of

the L-L Analysis implementation team, including structure and composition of the field team and

finalizing the detailed methodology and sampling framework.

Task 2: Conduct Desk Literature Review

As the first phase of the L-L Analysis, conduct a literature review in order to identify any/all critical

information on the environmental, social, economic and institutional conditions and challenges within

the Project location (investment landscape) that need to be addressed in order to implement a

successful GP Technical Assistance and Project Preparation Project. The team conducting the L-L

Analysis should compile all relevant background information from secondary sources to identify gaps

needing primary field research to avoid unnecessary or duplicative efforts. In addition, MCA will

provide Grantee with all existing GP-related information and studies including DRAs; when available,

district level strategic environmental assessments (SEAs); and PLUP activities and mapping exercises.

This first phase desk review will include review of the literature on communities, their economic

activities, institutions, topography and natural resources. Many helpful studies and tools already

completed by other donors, NGOs and governments that are needed to conduct an L-L Analysis can be

found at http://www.ecoagriculture.org/publications.php. These include published strategic

environmental assessment (SEA), environment and social impact assessment (ESIA),

environmental impact assessment (EIA), social and gender assessment, institutional and

stakeholder assessment, Demographic and Health Survey (DHS) data, Living Standards

Measurement Surveys (LSMS), Poverty impact assessments, CFPRI intra-household and food

security data, migration data carried out by government, donors, academic and research institution.

In addition to the website, NGOs active in Indonesia will be very willing to provide available literature.

As part of the MCA Indonesia District Readiness Assessment (DRA), SEAs have been conducted on four

(starter) districts for MCA Indonesia, including Mamuju. The SEAs also included ecosystem valuation

based case studies. These documents, together with other preparatory studies conducted for the

GP Project can be found at http://gp.mca-indonesia.go.id/.

DRAs have been completed on the following districts (Solok Selatan, Pesisir Selatan, Luwu Utara, Luwu

Timur, Kolaka, Kolaka Utara, Malinau, Mahakam Ulu, Berau, Kapuas Hulu and Sintang).

MCA Indonesia’s outline of the landscape-based approach is available at http://mca-

indonesia.go.id/publikasi/publikasi-kemakmuran-hijau/pendekatan-bentang-alam-untuk-proyek-

kemakmuran-hijau/.

Task 3: Conduct Fieldwork:

The second phase of the L-L Analysis will involve fieldwork to be undertaken in representative

sample locations to validate the desk review findings, understand challenges and risks at the field

level, appraise both successful and failing similar and related programs for understanding key

issues in order support the development and inclusion of key need based interventions, an inclusive

and effective beneficiary selection and stakeholder involvement process. The key stakeholder

groups should also include communities protecting the forest and water resources upland. The

process for mobilizing to conduct field work includes:

Section 1


18

a. Based on literature review in Task 2 and taking into consideration the topics given Task 4 and

Section 6.5 (Results template for the L-L Analysis Findings Report), draft a set of key questions to

be used in the field investigation.

b. Develop a L-L Analysis Tool Package Field Guide that will include the FGD guide, the semi-

structured KII questionnaire and gender analysis tools. The field team needs to be trained using

this Tool Package.

c. Using the various participatory tools agreed in the Work plan and adjusted based on Task 2

findings, conduct field work in representative communities and geographies.

d. For those communities targeted for fieldwork, development of community/social map,

one natural resource map, one livelihood assessment, seasonal calendars and activity profiles of

the community, and one transect walk. Also discuss community needs for benefit

sharing/community development action plan for Corporate Social Responsibility (CSR) Action

Plan. Development of series of detailed maps that build on the maps provided in the

Detailed Technical Assistance and Project Preparation Proposal and define the geographic

boundaries of the Investment Landscape (IL) and Development Landscape (DL) with

topography, natural and land use resource mapping (including forest area and actual forest cover,

and any peat lands), major rivers and roads, location of beneficiaries, community livelihood

patterns, and administrative boundaries.

Task 4: Prepare L-L Analysis Findings Report

Based on Task 2 Desk Review and Task 3 Field Work and utilizing the Results Template provided in

Section Error! Reference source not found., prepare a L-L Analysis Findings Report(s) that will (i)

summarize findings; (ii) include maps that cover investment landscape with topography, natural

and land use resource mapping (including forest area and actual forest cover, and any peat lands),

major rivers and roads, location of beneficiaries, community livelihood patterns, administrative

boundaries (iii) identify key social and environmental constraints and opportunities; and (iv)

document how the findings refined (or will refine) the final Project design, CSR action plan, risk

mitigation and oversight strategy. In addition to the for the L-L Analysis Findings Report, the Section

6.5Error! Reference source not found. Results Template provides an outline of the minimum

required topics to be included in the analysis. More topics can be added into the analysis as needed to

get detailed information for identifying key areas of activities, including strategy/approach for

coordinating with other similar programs near/in target districts and sub-districts, targeting and

selecting beneficiaries within those sub-districts and villages, community participation and

agreement, governance mechanism, and promoting sustainability of outcomes.

6.1.2 Indicative Tool Package for Field Work Various participatory rural appraisal (PRA) tools such as focus group discussion (FGDs); key

informant interview (KIIs); natural resource mapping, participatory community/social mapping;

livelihood mapping, vulnerability and trend analysis; transect walk; and participant observation will

be used for L-L analysis. The teams/firms working on L-L Analysis need to develop a field guide on

Tool package that will include the FGD guide, the semi-structured KII questionnaire, and gender

analysis tools.

The following PRA tools can be used, and need to be detailed in the Grantee Fieldwork tool package

Guides.

a. Gendered natural resource assessment. Involves facilitating a session where participants are

asked to map out key structures and natural resources in their surrounding communities.

Section 1


19

b. Transect walks and direct observation. These are systematic walks with key informants through

the area of interest, observing, asking, listening, looking, and seeking problems and solutions.

c. Key informants interview (KII). This is guided interviewing and listening in which only some of

the questions and topics are predetermined; other questions arise during the interview. Using a

guide or checklist, the multidisciplinary team poses open-ended questions and probes topics as

they arise. New avenues of questioning are pursued as the interview develops. KIIs are a central

part of all participatory methods.

Environment and Social Requirements As one of the three main Projects under the Indonesia Compact, the Green Prosperity (GP) Project is

subject to comply with environmental and social safeguards described in the MCC Environmental

Guidelines. To achieve this, MCA-Indonesia has developed the MCA- Indonesia Environmental

and Social Management System (ESMS) Framework as the main reference for environmental and

social management in MCA-Indonesia and to act as the Tier- 1 main policy and implementation

framework for the tiered approach ESMS in the Indonesia Compact. At the GP Project level, MCA-

Indonesia also developed the Tier-2 GP Project ESMS as a framework to guide environmental and

social performance for the GP Project.

All Green Prosperity investments and operations shall comply with the MCA-Indonesia Tier 1 ESMS

Framework and Tier 2 GP ESMS, which is based on safeguard laws and regulations of the Government

of Indonesia, MCC Environmental Guidelines, MCC Gender Policy and the Green Prosperity Social &

Gender Integration Plan (SGIP), and are consistent with the IFC Performance Standards (IFC PS) on

Environmental and Social Sustainability. The proponent is responsible for developing and

commissioning the Project-level ESMS, and Environmental and Social Impact assessments (ESIA),

shall include Environmental and Social Management Plan (ESMP) and the L-L Analysis as well as

necessary environmental and social studies and/or assessment identified specifically for this GP

investment.

6.2.1 International Finance Corporation Performance Standards (IFC PS)

The IFC PS is the main framework guiding the development of the ESMS in all MCA-Indonesia

operations. The IFC Performance Standards (PS) is based on the IFC Sustainability. Framework

effective January 1st 2012 and consist of the following:

PS 1: Assessment and Management of Environmental and Social Risks and Impacts

PS 2: Labor and Working Conditions

PS3: Resource Efficiency and Pollution Prevention

PS4: Community Health, Safety, and Security

PS5: Land Acquisition and Involuntary Resettlement

PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

PS7: Indigenous Peoples

PS8: Cultural Heritage

A detailed reference to the IFC PS Sustainability Framework, guidance notes, and handbooks can be

obtained through the IFC website at:

http://www.ifc.org/wps/wcm/connect/Topics_Ext_Content/IFC_External_Corporate_Site/IFC+Sust

ainability/Our+Approach/Risk+Management/Performance+Standards/.

Section 1


20

6.2.2 Environmental and Social Impact Assessment (ESIA) The Proponent is responsible for commissioning the environmental assessment, which comprises

of either an AMDAL or UKL/UPL or an SPPL, following the Indonesian regulations that govern

determination of an appropriate level of Study.

The scope of the AMDAL or UKL/UPL shall follow Indonesian government guidelines, but be

complemented or strengthened in several areas to ensure compliance with Project ESMS (and thus

the IFC Performance Standards).

In the event that no AMDAL or UKL/UPL is required by Indonesian regulations, then the preparation

and submission to the Indonesian authorities is not required to be undertaken, but the ESIA for MCA-

Indonesia purposes should meet the IFC PS standards.

Areas that need to be strengthened in the AMDAL or UKL/UPL may include (but are not limited) to

the following:

� Assessment of stakeholder engagement which include stakeholder identification,

stakeholder mapping and stakeholder engagement plan;

� Assessment of social impacts (issues related to women and marginalized groups, indigenous

peoples, cultural heritage, human trafficking, discrimination in the workplace);

� Assessment of impacts related to land acquisition and resettlement, if required;

� Public participation in the AMDAL process (particularly to ensure that women, marginalized

groups and indigenous peoples are adequately consulted).

During implementation of the environmental assessment, the proponent shall conduct

appropriate consultations with affected communities and key stakeholders. For the

Environmental and Social Assessment (EIA) process, the consultations shall follow Government

of Indonesia guidelines, and results shall be formally acknowledged and incorporated in the

environmental and social assessment (ESA) Study and reports. For UKL/UPL, consultations shall

be conducted to ensure that the affected communities’ perception of potential impacts (even

insignificant ones) is considered in the preparation of environmental and social management and

monitoring plans. In both instances, appropriate dissemination of information and IFC Performance

Standards regarding informed consultation shall be conducted to ensure that target groups are

prepared to provide comments, inputs and express aspirations in a manner that is consistent with the

requirements of the IFC Performance Standard triggered.

The proponent shall ensure that all AMDAL or UKL/UPL documents produced by proponent are of

good quality and follow accepted standards set, at minimum, by the Ministry of Environment or

local level agency. MCA-Indonesia ESP and/or GP technical assistance teams shall provide support to

proponent should they require it, particularly regarding review of draft AMDAL or UKL/UPL

documents prior to submission to the Government for approvals.

As part of the environmental assessment, the proponent (or their consultants) shall gain an

understanding of how the environment (and changes therein) may affect the viability and

sustainability of MCA-Indonesia GP investments. If an assessment has been done by MCA- Indonesia,

results shall be shared with proponent (and their consultants), and such findings shall be

incorporated into or influence Project-specific designs and/or environmental assessments. A

strategic environmental assessment, or other method of baseline assessment agreed with the MCA-

Indonesia ESP Director, will address this issue.

Section 1


21

6.2.3 Environmental and Social Management Plant (ESMP) Part of the outcome of the Environmental Impact Assessment (AMDAL or UKL/UPL) process is an

environmental management plan (in the form of RKL or UKL). In order to ensure proper Design and

Implementation of Environmental and Social Action Plans, the proponent shall prepare the RKL or

UKL in such a way that it comprehensively addresses mitigation and management of environmental

and social impacts, and elaboration of stakeholder engagement plan (SEP), public consultation and

disclosure plan (PCDP). Because the contents of the RKL or UKL will become the basis of

Environmental Permit conditions, the action plan shall have the following characteristics: a) specific

and measurable actions, b) clear targets and location of actions; c) realistic frequency or duration of

actions; d) present mechanism to modify actions should monitoring show unexpected impacts.

Aspects or parameters that are not included in the Environmental Permit, shall remain in the

Environmental and Social Action Plan, and shall be implemented with the same diligence as those in

the Environmental Permit. The Project Environmental and Social Management Plan (ESMP) will be

developed based on the GP Tier 2 ESMS and will elaborate further Proponent’s responsibilities,

actions and management plan for the entire duration of the Project. This ESMP will also be the basis

for planning and resourcing and procuring for the successful implementation of the Project ESMS, and

will form the basis for budgeting.

6.2.4 Environmental and Social Performance Datasheet

6.2.4.1 Guidance to Prepare the Environmental and Social Performance Datasheet

This note provides a brief guidance to the Shortlisted Applicant on how to prepare the above

Environmental and Social Performance Datasheet.

The objectives of the ESPD are to:

• Help the Shortlisted Applicants identify and address potential adverse environmental and social

impacts of proposed Projects early in the Project cycle

• Help Shortlisted Applicants plan for environmental and social performance measures to be

integrated into Project design

• Serve as a media/document to inform the public on applicable Environmental and Social Policy

(ESP) and mitigation measures in the Project.

6.2.4.2 Basic Information

1) "Applicant Name" is the name of the Shortlisted Applicant who submits the Technical Assistance

and Project Preparation Proposal.

2) "Brief description of applicant" describes the Shortlisted Applicant's basic information, expertise

or field of work and capacity.

3) "Name of Project to be funded under GP Project" is the title of the proposed Project.

4) "Location" should describe in some details the social and geographical context in which the

Project will be implemented. Maps can be very useful and the task team is encouraged to have

good maps developed (particularly at the appraisal-stage), showing socially and environmentally

sensitive areas.

5) "Estimated Project duration" is the estimated time of the Project from planning until completion.

6) "Estimated budget for Project activity" is the estimated total budget for the proposed Project.

7) "Project Objectives" are drawn from the objectives in the Shortlisted Applicant's Technical

Assistance and Project Preparation Proposal.

8) "Project activities" are the proposed Project's activities.

9) IFC Performance Standard Trigger. The Shortlisted Applicant should keep the whole set of IFC

Performance Standard policies in mind when filling out this section. In this section, the applicable

Section 1


22

policy should be checked. If sufficient details about the Project are not known at the concept-

stage, the Shortlisted Applicant has the option to use the “to be determined (TBD)” check box.

The Shortlisted Applicant should provide a short explanation under each checked ESP policy. The

IFC Performance Standards document can be found in:

http://www.ifc.org/wps/wcm/connect/c8f524004a73daeca09afdf998895a12/IFC_Performan

ce_Standards.pdf?MOD=AJPERES.

10) "Applicant capacity of ESP" describes the Shortlisted Applicant's past experiences in undertaking

ESP-type of analysis and any other available information.

11) "ESP Specialist" is the person in charge responsible for the environmental and social aspects in

the Shortlisted Applicant's Project implementation team.

12) "Project Environmental Category" is based on MCC's environmental and social guidelines. Please

refer to Tier1 and Tier 2 GP Project ESMS and IFC PS.

6.2.4.3 Environmental and Social Performance Issue and Management

This section should describe in more detail potential issues and impact from the Project and the

alternative approach or mitigation plan to avoid or minimize adverse impact. The applicant should

also describe what measure would be taken to address other environmental and social issues, and

should also provide information of the applicant’s capacity to plan and implement the described

measures.

6.2.4.4 Disclosure Requirement

This section should describe the relevant environmental and social documents that shall be

disclosed, such as Environmental Impact Assessment (EIA), Environmental Management Plan (EMP),

Land Acquisition and Resettlement Action Plan (LARAP) and or Indigenous People (IP) Plan, etc.

when disclosure will happen and where the documents will be uploaded for public viewing.

Social and Gender Integration Requirements The Social and Gender Integration Plan (SGIP) is an operational tool developed by MCA-Indonesia

that complies with the MCC Gender Policy and the IFC Performance Standards on Environmental and

Social Sustainability. Its objective is to systematize and ensure social and gender integration across

Compact Projects and activities in order to reduce poverty and improve household welfare. It

also aims to minimize social and gender based constraints, provide equal opportunity to both women

and men in GP investments, minimize exclusion of marginalized groups, reduce social jealousy and

conflicts, and potential capture of benefits by elites. A substantial amount of background research,

analysis, assessments and consultations have been carried out during the Compact development

process to help inform this plan. These assessments identified several cross-cutting gaps and

inequalities at the policy, institutional and community levels, which may impact women and

marginalized groups’ ability to participate in and benefit from different Projects. The SGIP includes

activities to address some of these social and gender based critical constraints, reduce barriers and

identify opportunities for providing equitable benefits to all.

6.3.1 Rationale for Social Inclusion and Gender Integration in Green Prosperity (SGIP)

The Indonesia Compact commits to “equal participation in and benefits from GP Project

investments by women and marginalized groups”. Given the commitment, the following are some

key social and gender based constraints that can limit full participation by all social groups and reduce

their potential in GP activities.

a. Participatory land use planning (PLUP), village boundary setting and resource mapping

(VBS/RM): If women and marginalized groups are left out of the consultations and decision

Section 1


23

making, the results may not reflect the full scope of marginalized groups and women’s natural

resource management and use patterns – potentially affecting outcomes in landscapes,

livelihoods, and food security. Therefore, it will be critical to include ethnic communities, and

women in VBS/RM consultations and decision making.

b. Natural resource management (NRM): Social and gender aspects influence individual’s roles in

accessing, managing and utilizing natural resources, especially forest. Indonesia has over 300

ethnic communities (adat) and majority of them depend on forests. In forest and ethnic

communities, women depend on forests for income and subsistence, and as such forest is much

more important for women as they derive half of their income from forests. Though both men’s

and women’s forestry activities contribute to household livelihoods there is considerable gender

differences in access and benefits.

c. Renewable energy (RE): In many rural areas in Indonesia, women especially in indigenous

communities collect firewood and cook over smoky fires, with substantial burdens relating to

health and time use. However, women usually have limited access to modern household fuel,

electricity or technology, which reduces their potential in saving time, enterprise development,

productivity and income. Women working in cacao, coffee and other commodities can improve

their income if electricity, processing equipment and fermenting technologies are available.

d. Sustainable agriculture: Women play a vital role as agricultural producers and are agents of

food and nutritional security for households, however, women have much less access to

productive assets such as land, irrigation, equipment, finance and extension services relative to

men. Research indicated that women have less opportunity to get involved in the farmers

(cocoa/coffee) groups and get less opportunity to be invited into the farmers training (capacity

building), accessing extension services and high yield inputs since only heads of households

could join these groups and access services and training (generally women are not recognized as

head of households).

6.3.2 Key Social and Gender Activities needed for GP a. Capacity Building for Proponents and GranteesProject developers and implementers. A series

of capacity building materials, tools, and modules are prepared to help various GP stakeholders

understand and meet the social and gender requirements and to ensure “equal access for women

and vulnerable groups.”

b. Grantees to follow inclusive participatory process, by including women and marginalized

groups for design, implementation, monitoring and evaluation of GP investments. This is key for

ensuring the views, needs, concerns and interests of both women and men and vulnerable groups

are incorporated into Projects.

c. L-L Analysis carried out by Grantees so that this helps reducing elite capture of benefits and

potential conflict: L-L analysis will help identify social, gender, institutional and NRM

relationships, and identify approaches for equal participation and voice for all in GP investments,

which will help develop strategies and social contracts between communities for reducing

elite capture of benefits and potential jealousy.

d. Collect global good practices and proactively support economic opportunities for women and

marginalized groups through GP investments. It also includes supporting the hiring of women

in infrastructure Projects, and complementary activities that encourage women’s economic

potential, especially focusing on women’s income generation potential.

Deliverables Deliverables and associated timeline required to complete the L-L Analysis are provided below.

Deliverable Time from Effective Date

Section 1


24

1. Work Plan as described in Task 1, (to be included in the first

deliverable in Section 3.3) acceptable to MCA-Indonesia 2 (two) weeks

2. First Report Draft

- L-L Analysis Findings Report utilizing findings from Tasks 2

and 3 and presented in Results Template (section 6.5),

including maps (Task 3.e) as an attachment, acceptable to

MCA-Indonesia.

- Environment and Social Management Plan (ESMP)

- Project Social and Gender Integration Plan (P-SGIP)

5 (five) weeks

3. Final Report Draft, including Revised Project Improvement

and Budget, if any that has been incorporated in the Final

Draft of Detail Project Improvement.

10 (ten) weeks

4. L-L, Environment, Social and Gender Final Report refer to the

template in section 6.5.

12 (twelve) weeks

Result Template NAME OF PROJECT AND ITS INVESTMENT LANDSCAPE

Complete as appropriate

EXECUTIVE SUMMARY

Provide brief description of the biophysical, administrative and social elements of the investment landscape

and the wider development landscape which influences the investment and in turn is influenced by the

investment

GENERAL GEOGRAPHIC INFORMATION

GEOGRAPHICAL CLASSIFICATION:

Choose as appropriate: upland/lowland/coastal/small island

GEOGRAPHICAL RANGE:

Provide narrative and detailed map of both investment and development landscape that is defined by

effective relationship between biophysical, land use functions and administrative features, with appropriate

boundaries

RELEVANCE FOR EXPANSION/REPLICATION:

Indicate whether investment landscape is representative of certain types and location where expansion and

replication of landscape may be of interest to Green Prosperity or similar low-carbon development efforts

LANDSCAPE ELEMENTS ~ Natural Capital (see 2013 FAO Climate-Smart Agriculture,

Module 2)

Section 1


25

STRUCTURE:

Identify interaction between key biophysical/environmental features, land-use patterns and infrastructure

(use maps to assist visualization)

FUNCTIONS:

Describe provision of environmental services for multiple uses and functions those may serve local

populations, external parties and society as a whole

VALUES:

Describe actual societal values (economic, financial and social) placed on landscape and potential costs of

maintaining and or enhancing landscape functions, specifying major sources of natural capital and

safeguard issues)

LIFESCAPE ELEMENTS ~ Human and Social Capital (see J. Sayer et al.,

www.pnas.org/cgi/doi/10.1073/pnas.1210595110.)

SOCIOECONOMIC CONDITIONS:

To include detailed description of:

• The social structure

• In/out-migration trends and demographic issues

• Vulnerable groups

• Human development and gender status

BENEFICIARY ASSESSMENT


• Description of the proposed beneficiaries

• Needs and constraints faced by the beneficiaries that can be filled by the investment

• Institutional relationships, constraints and opportunities

COMMUNITY LIVELIHOOD PATTERNS:


• Social and Gender issues impacting the livelihood pattern in relation to the landscape.

• Gender based livelihood patterns

• What are the household livelihood strategy and constraints reducing beneficiary potential, especially

of the poor and marginalized whose knowledge, social and human assets add value to the landscape

approach

• Do households and local population have easy market access and investment opportunities? If not,

what are the constraints and how these can be reduced?

• Is there exclusion of certain groups from economic and other activities and why? Do women and

vulnerable groups have access to agricultural training, inputs and extension services?

STAKEHOLDER ANALYSIS:

Section 1


26

Guiding questions to address the following:

• Who are the local, regional, national and international stakeholder (identifying both within

investment and development landscapes) groups/actors and how do they interact in the Landscape?

How does social inequality shape these interactions?

• Who has the most to gain and who has most at risk, either with or without investment?

• How do political, administrative, social and cultural institutions – including those external to the local

area – influence local stakeholders access and control of natural resources and potential benefits

flowing from the investments?

• What opportunities are available to create the context for shared green prosperity by preventing elite

capture, promoting equitable benefits across gender and social groups, and creating the institutional

and social context for sustainable resource management?

• How are the stakeholders, especially men, women and vulnerable/marginalized group engaged in the

design and implementation phases?

• Are there any parties other than key stakeholders who may wish to positively or negatively influence

the operation and outcome of the project?

DEVELOPMENT CONTEXT AND LESSONS LEARNED ~ Knowledge Capital

DEVELOPMENT CONTEXT


• Other GP/MCAI activities that potentially impact the project and its L-L, if any

• Other GP/MCAI activities that potentially will be impacted by the project and its L-L, if any

• Non-GP/MCAI projects or regional programs that potentially impact the project and its L-L

• Non-GP/MCAI projects or regional programs that potentially will be impacted by the project and its

L-L

• Opportunities for the project to create positive synergies through appropriate coordination with the

above

LESSONS LEARNED FROM SIMILAR INITIATIVES - successes and failures (past and ongoing)


• Lessons from Strategic Environmental Assessment (SEA / KLHS) or similar analyses

• Lessons from GP Multi-stakeholder Forum (MSF) or similar fora, and lessons from GP PLUP, if

activities already commenced in project location

• Additional lessons identified by project proponent

• Means of incorporating above lessons so they are operationally and consistently learned

• What local, national or global lesson were learned from past challenges and failures? What similar

activities did not work well in the past, and how can this investment build on workable solutions from

successful projects.

CHALLENGES/RISKS AND OPPORTUNITIES

LOCAL CHALLENGING CONDITIONS FOR THE PROJECT

To include descriptions to respond to following questions

Section 1


27

• Are there any sectoral biases and what are these? Will some sectors invest more heavily or benefit

from investment more than others? Are there sectors that should invest, but are not compelled to?

Why?

• Are any structural policy or institutional challenges or constraints?

• Are there tensions between development, donor and research agencies across the same landscape and

what are these?

• What are the potential uncertainty and risks to investors?

• Are there any governance, dispute resolution and social accountability measure for local resource

utilization and management?

ENVIRONMENTAL, SOCIAL AND ECONOMIC CHALLENGES AND POTENTIAL

To include descriptions to respond to following questions:

• What is the status of natural resources for improving productivity, especially land, soil and

water?

• Are there market access and investment opportunities or constraints for local population, significant to the investment?

• Any destructive environmental practices of related natural resource use, e.g., disturbances to

upstream or downstream areas of watersheds affecting livelihoods?

POTENTIAL EXCLUSION AND ELITE CAPTURE:

To include descriptions to respond to following questions:

• Is there potential exclusion of certain groups from investment related economic and other activities

and why? What about forest dwellers who are protecting the forest and water sources? Will they be

adequately compensated or remain excluded from project participation and benefits? Is women

headed household be counted as beneficiaries of the investment related economic and other

activities?

• Do women and vulnerable groups have access to economic opportunities employment, agricultural

training, inputs and extension services? Describe actions to be taken so that women, the poor and

vulnerable groups will benefit directly from the project investment?

• Any divisive social jealousy and reasons? What about forest dwellers, fishers, women headed

households who do not access to services, project benefits and payments. How can GP investments

increase household incomes and economic growth in project locations, as well as support the enabling

environment for promoting equity, stakeholder cohesion, and incentivize some actors/sectors to

invest in relevant sectors for example promoting value chain development, market access for women

and men farmers, fishers and other producers in rural areas?

• Any potential dispute and conflict and why?

ADJUSTMENTS TO THE PROJECT IMPLEMENTATION PLAN

1. ACTIONS FOR REDUCING CARBON EMMISSION

• Provide estimation/calculation of GHG reduction and/or sequestration The IFC Performance

Standard 3 references the Greenhouse Gas Protocol, produced by the World Resources Institute and

World Business Council for Sustainable Development, which provides guidance on conducting these

types of GHG analyses. See: http://ghgprotocol.org/files/ghgp/ghg_project_accounting.pdf

• In the case where project core interventions have no demonstrable reduction of GHG emission,

propose a credible scheme to offset any additional emissions resulting from project (only Scope 1 of

the GHG protocol, that is, direct effects of the project, whereby these may include effects on the

Investment Landscape and not just on the plots of land “treated” by the project.

Section 1


28

2. ACTIVITIES FOR INCREASED HOUSEHOLD INCOME


• Benefit-sharing, community development

• Social inclusion and equal opportunity for participation in and receiving benefits, including activities

to reduce women’s burden of unpaid work in the household

3. SUPPORTING ENTREPRENEURSHIP AND VALUE CHAIN DEVELOPMENT


• Dissemination of market information, linking local to national markets

• Linking with association and networks

4. ACTIONS FOR IMPROVED LOCAL GOVERNANCE


• Response to any policy and institutional constraints

• Building on functioning, fair and transparent local/traditional dispute resolution and/or social

accountability system

• Making use of GP participatory land use planning (PLUP) that leads to greater spatial certainty

(improved spatial plans, transparent natural resource licensing systems and clear village community

boundaries)

• Stakeholder engagement plan (SEP) for enhanced cohesion

• Transparency and dissemination of information and results

5. PROJECT ENVIRONMENT AND SOCIAL MANAGEMENT PLAN (ESMP)

6. PROJECT SOCIAL AND GENDER INTEGRATION PLAN (P-SGIP)

7. CORPORATE SOCIAL RESPONSIBILITY ACTION PLAN

8. DETAILED RISK MANAGEMENT AND MONITORING AND EVALUATION (M&E) STRATEGY:


• Identified sources or amplifiers of risk and risk-tracking indicators

• Specific landscape/lifescape parameters suitable for M&E as well as local partners who may carry out

some of the M&E functions

• Opportunities for shared learning from the results of M&E through dissemination to local, national

and global audiences. Grantees have to have a dissemination plan for sharing knowledge with local,

regional, national and regional stakeholders.

OVERSIGHT STRATEGY:

Develop oversight strategy with key milestones and indicators, especially discrete elements within the GP

ESMS, SGIP, ERR Guidance and M&E Plan that must be addressed by Grantees and reviewed by MCA

Indonesia

METHODOLOGY


• Methods/mechanisms employed to undertake L-L analysis to inform project design

Section 1


29

• Methods/mechanisms employed to ensure that L-L continuously informs project implementation to

allow appropriate responses

• Methods/mechanisms to update the project risk registry, sharing this information with MCA

Indonesia

KEY REFERENCES

Literature, regulation, other sources

ANNEXES

As appropriate include relevant project-level documentation; e.g., Environmental and Social Performance

Datasheet, MSF reports, PLUP/VBS surveys, etc. which may contribute to the L&L analysis

ILLUSTRATIONS

As appropriate include maps, tables, photographs

Section 1


30

Appendix A

Indicative Table of Identified Key Risks Summary

Indicative Table of Identified Key Risks Summary Allocation

Reduction or

Mitigation

Options Nº Event Potential Impacts

Pro

ject

Ow

ne

r

Len

de

r

Co

ntr

act

or

Off

-ta

ke

r (P

T.P

LN)

Insu

rer

MC

A-I

nd

on

esi

a

DEVELOPMENT STAGE

1 Legal Aspect

2 Project Structure, Company

and Sponsor Aspect

3 Project Contractual

Structure Aspect

4 Technical Aspect

5 Financial Aspect

6 Environmental and Social

Aspect

7 Social And Gender Aspect

CONSTRUCTION STAGE

1 Legal Aspect


and Sponsor Aspect


Structure Aspect

4 Technical Aspect

5 Financial Aspect


Aspect


OPERATION STAGE

1 Legal Aspect


and Sponsor Aspect


Structure Aspect

4 Technical Aspect

5 Financial Aspect


Aspect


31

Appendix B

Indicative Table of Contents for Detail Project Review

32

Appendix C

Indicative Table of Contents for Detail Improvement of

Project Development