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INTEGRATED SAFEGUARDS DATA SHEETRESTRUCTURING STAGE

Note: This ISDS will be considered effective only upon approval of the project restructuring.

Report No.:ISDSR18038Date ISDSPrepared/Updated: 22-Mar-2017

I. BASIC INFORMATION1. Basic Project DataCountry: Indonesia Project ID: P111034

Project Name: Jakarta Urgent Flood Mitigation Project (P111034)

Task Team Leader(s): Fook Chuan Eng,Iwan Gunawan

Estimated AppraisalDate:

16-Sep-2011 Estimated Board Date:

17-Jan-2012

Managing Unit: GSU08 Lending Instrument: Specific Investment Loan

Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00(Rapid Response to Crises and Emergencies)?

No

Financing (In USD Million)

Total Project Cost: 189.85 Total Bank Financing: 139.64

Financing Gap: 0.00

Financing Source Amount

Borrower 50.21

International Bank for Reconstruction and Development 139.64

Total 189.85

Environmental Category: A - Full Assessment

Is this a Repeater project? No

2. Current Project Development ObjectivesThe Project Development Objective (PDO) is to contribute to the improvement of the operation and maintenance of priority sections of Jakarta's flood management system. The PDO will be achieved through: (a) Dredging sections of selected key floodways, canals and retention basins (waduks) to improve their flow capacitie s, and disposing the dredge material in proper facilities; (b) Rehabilitating an d constructing embankment in sections of, and repairing or replacing mechanical equipment in, the same selected key floodways, canals and retention basins to su stain and improve their operations; (c) Establishing institutional coordination between the three responsible agencies to encourage coordinated development, and operations and maintenance (O&M) of Jakarta's flood management system, and (d) Strengthening the capability of the responsible agencies to improve the operatio ns, maintenance and management of Jakarta's flood management system.

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Proposed New PDO (from Restructuring Paper)The Project Development Objective (PDO) is to contribute to the improvement of the operation and maintenance of priority sections of Jakarta's flood management system. The PDO will be achieved through: (a) Dredging sections of selected key floodways, canals and retention basins (waduks) to improve their flow capacitie s, and disposing the dredge material in proper facilities; (b) Rehabilitating an d constructing embankment in sections of, and repairing or replacing mechanical equipment in, the same selected key floodways, canals and retention basins to su stain and improve their operations; (c) Establishing institutional coordination between the three responsible agencies to encourage coordinated development, and operations and maintenance (O&M) of Jakarta's flood management system, and (d) Strengthening the capability of the responsible agencies to improve the operatio ns, maintenance and management of Jakarta's flood management system.

3. Project DescriptionThe Project still consists of two components but will include, within these components, an additional construction of a pumping station to improve the flow capacities within an existing project site, an additional review the master plan on flood management in Cisadane – Jakarta – Bekasi area, and a new provision for a small incremental operating cost to support project management:

Component 1 – Dredging, rehabilitation and flow capacity improvement of selected key floodways, canals and retention basins. This component involves dredging and rehabilitation of 11 floodways/canals and four retention basins which have been identified as priority sections of the Jakarta flood management system in need of urgent rehabilitation and improvement in flow capacities. The dredged material are transported and disposed into proper disposal sites at Ancol Confined Disposal Facilities (CDF). The 11 floodways / canals are estimated to have a total length of 67.5 km, while the four retention basins estimated to cover a total area of 65.1 hectares. About 42.2 km of embankments are expected to be rehabilitated or constructed within these floodways, canals and retention ponds. Where needed emergency mechanical equipment (pumps, gates, etc.) will be built, replaced or repaired. Under the restructured project, the component will also support an additional new activity i.e., the construction of a drainage pumping station of approximately forty (40) cubic meters per second capacity within one of the selected canals.

Component 2 - Technical assistance for project management, limited incremental operating costs, social safeguards, and capacity building. This component will support contracts management, engineering design reviews, construction supervision engineers for the dredging and rehabilitation works and technical assistance. Technical assistance includes support to improve institutional coordination for operations and maintenance of Jakarta's flood management system as well as the establishment of a Floods Management Information System (FMIS). Provision has been made under this component to support the implementation of required Resettlement Plans (RP), as well as the establishment and operations of a project Grievance Redress System (GRS). Under the restructured project, this component will support an additional new technical studies and analytical assessments to review the master plan on flood management in Cisadane – Jakarta – Bekasi area. The main elements of the current master plan dates back to the 1970s.

4. Project location and Salient physical characteristics relevant to the safeguard analysis (if known)All the floodways, canals and retention basins, disposal sites and identified linked sites are located in the DKI Jakarta province, except for the Bantar Gebang landfill for disposal of bulky garbage and PPLi Hazardous Waste facility which are located within the Greater Jakarta Metropolitan Area (so-called 'Jabodetabek'). DKI Jakarta is a highly urbanized area with high population densities. DKI Jakarta covers an area of about 650 km2 with a population of about 9 million. The Jabodetabek area covers an area of about 7,500 km2 with a

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population of about 23.7 million (2005). Administratively, the project sites are located in 57 kelurahans (urban villages) as part of 19 kecamatans (subdistricts) in four municipalities, i.e. North Jakarta, East Jakarta, Central Jakarta, and West Jakarta. About 1.8 million people live in these 57 kelurahans. Average density is 166 persons per hectare. The population in linked sites is estimated at about 173,000. There are substantial traffic congestions within DKI Jakarta and Jabodetabek areas. Measurements of noise indicated prevailing ambient noise to be frequently above local standards. The air quality is relatively poor (due in part to emissions) but air quality measurement at project sites indicated these are still within local standards.

The Jabodetabek area is surrounded by several dormant volcanoes whose slopes form the upstream catchment areas of the 13 major rivers that flow northwards through DKI Jakarta into the Java Sea. DKI Jakarta is located in the lowest lying part of this basin. Forty percent of DKI Jakarta lies below sea level, including most of north Jakarta. The 13 rivers, together with a large number of drainage channels, form the macro drainage system of DKI Jakarta. Due to inadequate maintenance and poor solid waste management, there is significant sediment and solid waste build-up in these channels. Water quality measurements at project sites showed that prevailing conditions frequently did not meet local standards. However, significant testing of the sediments at project sites has not identified sediments that are hazardous (following local standards, which are based on international practices).

Project site locations have not changed. Fifteen priority floodways, canals and retention basins are included in the scope of JUFMP works, they are grouped into eight package. Of the eight, seven have been completed, they are Package 1 (Ciliwung-Gunung Sahari Floodway and Waduk Melati), Paket 2A (Cengkareng Floodway), Package 2B (Lower Sunter Floodway), Package 3 (Cideng Thamrin Drain), Package 4 (Sentiong-Sunter Drain, Waduk Sunter Utara, Waduk Sunter Selatan, Waduk Sunter Timur III), Package 5 (Tanjungan Drain, Lower Angke Drain), Package 7 (Grogol – Sekretaris Drain, Pakin - Kali Besar - Jelakeng Drain and Krukut Cideng Drain). The last package that is about to be awarded (subject to project restructuring) is Package 6 that consists of West Banjir Canal (WBC) and Upper Sunter Drain. The additional Sentiong pumping station, which will comprise a specific new contract, is located within the Sentiong-Sunter area and will be constructed across the Sentiong canal.

The disposal sites for the dredged sediment and solid waste material removed from JUFMP dredging activities are not financed by the project, however, they are considered an integral part of the project. These disposal sites are: (i) the Ancol Confined Disposal Facility (CDF), which is part of an ongoing reclamation effort in the Ancol area of north Jakarta (for the disposal of non-hazardous dredge material), (ii) the PPLi Hazardous Waste facility in Bogor, West Java (for the disposal of hazardous dredge material, if any are found), and (iii) the Bantar Gebang landfill in Bekasi, West Java (for the disposal of solid wastes).

Ten sites were identified as hydraulically and directly connected with the floodways, canals and retention basins under JUFMP i.e., (a) K. Item, Kalibaru and Sunter Kemayoran (linked to the Sentiong Sunter Drain); (b) Ancol Kp. Bandan and Ancol Long Storage (linked to the Ciliwung-Gunung Sahari Floodway); (c) Canal along Jalan Kayu Putih Timur (linked to the Upper Sunter River Drain); and (d) Ciliwung Kota, the canal along Jalan Tubagus Angke, PHB Bandengan Utara and Waduk Pluit (linked to the Pakin Drain- K. Besar Drain- Jelakeng Floodway). The government currently has no specific plans for rehabilitation works at these sites. However, if activities are carried out during the JUFMP implementation period and they satisfy the relevant criteria, these will be considered linked activities and DKI Jakarta will apply the requirements of OP 4.12 in carrying out these activities. These criteria are that the activities are (1) directly and significantly related to JUFMP, (2) necessary to achieve JUFMP objectives, and (3) contemporaneous to JUFMP.

The majority of affected structures (i.e. about 72% of them) are non-permanent or temporary structures with the remaining being semi-permanent or permanent structures. All structures are owned by the project affected persons (PAPs) i.e. informal settlers are built on government land, with lack of basic services and

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infrastructure. Nonetheless, most of the affected settlements have existed for more than ten years prior to the project. For example, all potential affected HHs in Package 6 have lived in their current places for more than 10 years and about 70% are registered Jakarta residents as per ID card (i.e. KTP) check. Still on Package 6, about 95% of the HHs own their structures and the rest of 5% are renters. About 90% of the families work in informal sectors (e.g., fishermen, laborers, drivers, traders and small business owners). One specific characteristic of a majority of PAPs located at the West Banjir Canal (WBC) location (a location in Package 6) which is different from PAPs in other project locations - is that their livelihoods significantly depend on the site. In addition, influx of fishermen who come from outside of Jakarta is generally high during the fishing season that results in significant increase number of boats traffic. Note that those who come from outside areas normally stay in their boat after unloading their catch and will be ready to sail again after purchasing of logistical items is completed.

5. Environmental and Social Safeguards Specialists on the TeamKian Siong( GEN2A )

Rambat Sakwan( GSUID )

Virza S. Sasmitawidjaja( GEN2A )

6. Safeguard Policies Triggered? Explanation (Optional)Environmental Assessment OP/BP 4.01 Yes

Natural Habitats OP/BP 4.04 No

Forests OP/BP 4.36 No

Pest Management OP 4.09 No

Physical Cultural Resources OP/BP 4.11 No

Indigenous Peoples OP/BP 4.10 No

Involuntary Resettlement OP/BP 4.12 Yes

Safety of Dams OP/BP 4.37 No

Projects on International Waterways OP/BP 7.50

No

Projects in Disputed Areas OP/BP 7.60 No

II. Key Safeguard Policy Issues and Their ManagementA. Summary of Key Safeguard Issues1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts:Of the eight initial packages, seven have been completed. The restructuring is aimed i) to enable the last remaining Package 6 to be implemented towards meeting the project objectives, ii) to allow utilization of project loan savings for the construction of the new Sentiong pumping station and iii) to undertake technical studies and analytical assessments to review the master plan on flood management in Cisadane – Jakarta – Bekasi area.

Alleviating flooding in the capital city is one of the top priority of the government of DKI Jakarta. Besides

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reducing the environmental impact and public health issues caused by overflowing and stagnant flood waters, it will also reduce disruptions to communities in project areas - particularly to the predominantly poor communities living in flood-prone areas. Solid waste and sediments in the drains, if not removed, would be flushed uncontrolled into the estuary and bay area. Over the longer term, the flood information management system (FMIS) that is being introduced by the project would provide DKI Jakarta the information based planning tool needed to sustainably manage the network well beyond the life of the project and to continue to reduce the incidence of flooding in the area.

However, there is also potential for adverse environmental impacts e.g., from the sediment material and solid waste that are generated from project works, if they are not handled, stored, sorted, transported and disposed of properly. Involuntary resettlement has also been identified as required in some of the original project sites. For these reasons, the project triggers the World Bank's Environmental Assessment Operational Policy (OP 4.01), and as per this policy's requirements is assigned an EA category of A. The project also triggers the World Bank's Involuntary Resettlement Policy (OP 4.12).

There are no significant additional safeguards issues and impacts from the additional new activities. The new Sentiong pumping station will be located across an existing project canal i.e., the Sentiong, and within the canal reserve land on either side of the canal that are free of encroachers. No involuntary resettlement or land acquisition are expected from the construction of the pumping station. An EIA/EMP will be prepared and will be reviewed to the Bank’s satisfaction and publicly disclosed prior to the beginning of works.

The review of the master plan on flood management in Cisadane – Jakarta – Bekasi area is expected to involve the updating and augmentation of the mathematical flood models, and synchronizing the models with the latest existing infrastructure, infrastructure plans, and latest topography and land subsidence data. The updated model will provide the means to synchronize the various plans and optimize operational procedures. The review will include the identification and assessment of social and environmental constraints and impacts of each applied flood control, and consider options and alternatives that take into account the environmental and social considerations in line with the requirements of the Bank safeguards policies .

Key Project environmental safeguards issues

The environmental impacts associated with JUFMP works activities mainly stem from the dredging and selected construction works, the significant quantities of dredge material and solid waste that are generated from dredging works, and how these dredged materials are handled, temporarily stored, stockpiled, sorted, transported, and finally disposed in Ancol CDF. Potential significant environmental impacts from these works include:

- Traffic disruption from equipment mobilization and demobilization.- Traffic disruption from the transport of significant quantities of dredge material and solid wastes to their respective disposal sites. Total volume of sediment from seven completed packages were about 2.6 million m3. The remaining project works following project restructuring (Package 6) will remove an estimated 532,000 m3 of sediment and 13,000 m3 of solid waste.- Spillage of material along transportation routes if vehicle is not made water-tight.- Foul odors during dredging and reduced air quality from transport of dredged material, construction dust and emissions from construction machinery.- Increased noise levels and vibration from construction works (including piling works).- Temporary reduction in surface water quality in canals during project works,- Potential environmental and health hazards from hazardous material if these are improperly handled. Pre-dredging sampling and testing for the seven completed work so far has not found any hazardous material. Pre-dredging testing will continue for the last remaining works to be implemented following restructuring.

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As a precautionary action, the Bank has also carried out sampling and testing of material at the Ancol CDF disposal site and found no hazardous material from these tests.).

The environmental impacts associated with the Ancol CDF disposal site mainly stem from the construction and reclamation activities, including: (i) changes in tidal and current patterns, (ii) increased sedimentation around the CDF, (iii) degradation of sea water quality from filling and reclamation activities, and (iv) disturbance to the sea biota. There is also the potential for adverse off-site impact at the source locations and transport route of sand (8.6 million m3) and laterite (400,000 m3) required for the construction of the CDF (although the use of JUFMP dredge material to part replace sand material requirement - thus reducing sand requirement.

The environmental impacts from the project to the existing and ongoing operations of the Bantar Gebang sanitary landfill and the PPLi secure landfill are expected to be small. The estimated 13,000 m3 of total solid waste generated from the project will make up an insignificant percentage of normal loads being received at Bantar Gebang which is about 7000 tons per day. Hazardous material is not expected from JUFMP and even if some are found, the amounts are well within the capacity and handling norms of the PPLi secure landfill.

Key Project social safeguards issues

The PIU of DKI Jakarta (i.e. Water Resource Agency) is in charge for all resettlement issue. Involuntary resettlement activities have been carried out during project implementation. Based on the original Design and Engineering Drawings (DED) for the originally planned eight contract packages, there were seven locations (out of the 16) that required resettlement of project affected persons (PAP). As the result of DED redesign, the number of PAPs has been further reduced, i.e. from 1197 to 672 households (HH). See Section 3 below for a description of impact minimization efforts throughout the project. Currently, implementation of RPs for five sites have been completed, i.e. Waduk Sunter Utara, Waduk Sunter Selatan, Sentiong-Sunter Drain, Pakin-Kali Besar-Jelakeng Drain and Krukut Cideng, in which (i) 66 HHs were relocated - to public low-cost rental apartments (22 HHs) and to surrounding areas in the original location (44 HHs); (ii) 262 HHs were partially affected (< 20%) and compensated.

The RP for the remaining potential affected structures owned by 344 HHs (1720 persons) in Package 6, i.e. at two sites - West Banjir Canal (WBC) and Upper Sunter Drain will be implemented following the project restructuring but before the start of construction activities at these locations. The PIU of DKI Jakarta announced the cut-off date and determined the final number of PAPs in April 3-18, 2014; based on the cut-off date, the number of PAPs (all are informal settlers occupying state land) are 233 HHs at West Banjir Canal and 111 HH at Upper Sunter Drain.

During project implementation, DKI Jakarta had carried out a non-related activity adjacent to the JUFMP location at a stretch of Upper Sunter Drain. Between November 2014 and March, 2015, the Kecamatan (sub-district) of Pulogadung initiated a program for improvement of living standard of urban slum areas that is not related to flood management or JUFMP. Through the program, about 859 structures built in vicinity Upper Sunter River were demolished (note that JUFMP scope of work in Upper Sunter River only involved selective dredging in few sections of the rivers). The majority of structures were unregistered animal slaughtering (i.e. chicken) structures that operate in very non hygienic condition and without waste management system in place, as a result, all remaining parts (such as blood, feather, internal organs) are discharged directly to the river, causing heavy pollution, odor and sedimentation. Some other structures include motor bike workshops, street vendors, living structures, facilities, mosque and private toilets. None of households affected by this DKI Jakarta initiative were relocated, since their structure were only partially affected. No compensation was provided by the Government of DKI Jakarta. Out of the 859 demolished structures, there was an overlap of 31 structures owned by the 111 HHs identified as JUFMP PAPs in the

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Upper Sunter River, as of the cutoff date for Upper Sunter mentioned in the preceding paragraph. A team of consultant was dispatched by the JUFMP CPIU to carry out fact-finding and verification of all the 111 HHs identified as JUFMP PAPs. Of the 31 affected structures, some were only partially affected (e.g. the house back wall, kitchen, toilet), meanwhile the rest of the affected structures were chicken coops (for breeding and raising fighting roosters). All the 111 HHs are still living onsite currently. The RP for Upper Sunter (together with that for WBC) will be implemented prior to the start of Package 6 works and the appropriate assistance (e.g., assistance to repair partial damage, compensation for loss of assets not requiring physical relocation) will be provided to the identified impacted HHs including the 31 which were simultaneous affected by the other DKI initiative at Upper Sunter but would have otherwise also been affected by JUFMP, in line with the provision of the RP.

Besides involuntary resettlement issues, dredging activity during the fishing season can affect the fishermen activities in terms of temporary access issues within the canal. The impact will be temporary and of relatively short duration and can be mitigated during implementation through ongoing communications with the fishermen and the provision of alternate access route by the contractors. Other potential social impacts at the project sites would mostly occur during construction, such as disturbances during the mobilization of heavy equipment and transportation of the sludge materials to the disposal sites (including solid wastes); noise; odor; heavy traffic, and traffic accident; and damage to local roads.

Project works may also involve daily commute workers. Of the seven packages that have been completed, the workers (generally less than 100 persons at each site) are from within the Greater Metropolitan Jakarta. So far, there is no issue related to the migrated workers in the project, and the risk is considered low as the ratio of workers number to host population is very small and workers generally return home after work. This is expected to remain the case for the works to be done following project restructuring. During construction there would be temporary disturbance of boats anchorage along the West Banjir Canal (WBC), operators and owners of river crossing boats at WBC. As the impact would be temporary on a relatively small number of boat operators/owners in each of the above-mentioned canals, contractors will carry out intensive consultations with them to find practical solutions during construction so that they will be able to continue their activities and livelihoods.

The ESMF requires the hiring of an advisory Panel of Experts. This is no longer required given the developments during project implementation and the current stage of implementation. These advisors have not been hired but instead in response to the failure of the CPIU to retain these experts, alternative measures were put in place during project implementation (described further below). Three experts were originally envisaged: (i) a dredging expert, (ii) an environmental expert, and (iii) a resettlement expert. These were intended to provide advice on innovative and best practice principles, practices and methodologies in these areas during the project implementation. The Construction Supervision Consultants (CSC) retained international dredging and environmental experts to provide design and methodology reviews, monitoring, supervision and advice on dredging and environmental practices. In the event, the dredging methodology proposed by all winning contractors were standard excavation methodologies and this was found to be most practical given the available equipment, construction knowhow and standard practices in Indonesia. On the key environment issue of the disposal of dredge material, the Ancol Confined Disposal Facility (CDF) was inspected to be adequately constructed prior to the commencement of disposal activities. The Bank has also instituted its own sampling and testing of disposed material at the Ancol CDF to directly monitor for the presence of hazardous material. On resettlement, DKI Jakarta has been clear on its basic resettlement policy based around the principle of providing suitable public housing where physical resettlement is necessary and unavoidable in line with the provision of the RPF. While the DKI’s basic policy is determined, the CSC nevertheless retained a complement team of resettlement and grievance redressal / complaints handling experts to provide reviews, monitoring, supervision, advice and technical assistance to the PIUs. In the event, the number of households requiring a physical resettlement were also drastically reduced following the

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adjustment of engineering design to reduce resettlement. The Bank team is also keeping a close monitoring of the safeguards implementation. The CSC’s contract will be extended to cover the duration of the restructured project.

2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area:Maintenance activities (e.g., garbage collections and maintenance dredging) are being planned and can be expected at project sites to continue beyond the life of the project. These activities form part of the integrated management approach for the floods management system of Jakarta. If these maintenance operations are not carried out at the required intervals or are ineffectively done, new sedimentation and blockages will result, seasonal flooding will return and the project benefits will eventually be lost. The impacts from maintenance activities are expected to be similar to those during project implementation, except that the magnitude would be smaller and less intensive. For example, PIUs maintenance activities avoid damage or the need to relocate structures by using appropriate equipment and avoiding areas where structures are present. In addition, about 30,000 personnel (locally known as DKI’s “orange troops” and “blue troops”) have recently been recruited by DKI Jakarta Environmental Agency (Dinas Lingkungan Hidup) and Water Resource Agency (Dinas SDA) respectively to carry out ongoing drainage and solid waste cleaning and maintenance work. This has significantly reduced the volume of garbage that clogs the waterways and retention basin.

The reclaimed area of the Ancol CDF is expected to be utilized in the future for commercial and residential development. The use of non-hazardous dredge material from the project to partly fill the reclamation area has been assessed to pose no significant impacts or restrictions on the future use of the reclaimed area. In any event, the likelihood of contact between the dredge material and future resident population is minimize or avoided by the containment of the facility through a confined facility (using appropriate dykes) and the final capping of the surface with laterite (red soil) of a specified minimum depth.

3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts.On site selection, the sections of the Jakarta flood management system included in the project have been identified by the Government as priority that need of urgent rehabilitation and improvement in flow capacities. Prioritization was made based on previous studies under the Bank-financed Western Java Environmental Management Project (WJEMP) and various earlier studies on flood control and flood mitigation in Jakarta area. The additional Sentiong pumping station has been identified a key priority based on the latest land subsidence data which anticipates the frequent tidal flood related inundation of the associated area in the coming few years unless sufficient drainage pumping capacity is installed. The project scoping also took into account the inclusion of all responsible institutions as a means to encourage and establish the required long term integrated and sustained routine maintenance system. Environmental and social complexities at each potential work site were also important considerations of project scoping during project preparation - the project introduced new and improved approaches for environmental and social management that were hitherto not practiced (e.g., proper disposal of dredged material to confined disposal facilities, resettlement practices incorporating consultation, appropriate assistance and compensation). The final project scope balances between a set of works large enough for the project objectives to be achieved, and one that is manageable in environmental and social complexities to increase the likelihood of success in demonstrating the new and improved environmental and social practices .

Given the chosen project scope, the analysis of alternatives for dredging and piling techniques focused on alternatives for mitigation or other impact management approaches. In particular, various mechanical dredging options and methodologies to reduce impacts associated with these types of activities were considered. Engineering design focused on minimum designs required to restore the sections to appropriate operational levels, and methodologies that can dredge around existing structures, minimize the required construction space. In order to minimize negative impact of sheet-piling, piling work has been carried out using “vibro” rather than “Jack hammer” to reduce noise and vibration impact on the structure. Likewise,

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dredging with floating excavator (on the pontoon) then temporary storing the dredged material in barges reduces the temporary storage of the dredged material on land and ease the traffic disruption.

With respect to the choice of the main disposal site for non-hazardous dredge material, multiple options and alternatives were considered. During past dredging operations, excavated material was usually dumped on any vacant land owned by DKI (Jakarta Provincial Government). In some cases sediments are placed on embankments and not otherwise disposed of, which resulted in sludge returning to waterways. The JUFMP has provided the first opportunity for DKI Jakarta and the Government of Indonesia (GoI) to coordinate and dispose dredged materials in a defined and managed disposal area, and to introduce best-practice management principles. Before Ancol CDF was identified as the disposal site, there were seven sites identified and assessed for disposal sites. However all the other options/alternatives were rejected due to their minimal disposal capacity, resettlement issues, aesthetic and odor issues, and supervision difficulties.

Throughout preparation and implementation, the project has sought and will continue to seek to avoid or minimize (if avoidance is not possible) both resettlement and non-resettlement related social impacts. This was done through limiting works to priority sections, careful selection of dredging approaches and equipment technology, reducing the rights of way of the inspection areas to minimum allowable standards for maintenance and security, and detailed engineering designs (DEDs) geared towards minimizing impact. Significant efforts have been made to minimize the number of PAPs through an iterative process to adopt engineering designs and selection of works methodology to minimize impact. Such efforts between September 2010 and August 2016 has resulted in the reduction of potential site that need relocation of PAPs from seven to three, and a corresponding reduction of the number of affected structures. During project preparation, the reduction of required work area via the adoption of impact minimizing construction techniques and the reduction of inspection right of way in the DED resulted in reducing he initially expected PAPs from 2,513 HH units (occupied by 6,507 persons) to 1,197 HH units (occupied by 5,228 persons). During implementation, further efforts were made through on-site inspections, consultations and field engineering and construction adjustments further reduced the PAPs from 1,197 units (occupied by 5,228 persons) to 672 units (occupied by 3,360 persons).

The impact minimization effort will continue in the Package 6 project implementation, where 344 HH units of the 672 HH units mentioned in the preceding paragraph is located. The DED for Package 6 has been redesigned a number of times to minimize the number of affected structures (all are non-permanent) that at the same time still can achieve the technical objective (i.e. water conveyancing capacity). While some structures may be partially impacted requiring appropriate assistance and compensation to be provided, in the latest design physical displacement of PAPs is expected to be fully avoidable. This is especially pertinent for the specific fishermen community at WBC since their livelihoods significantly depend on the site. The redesign of the DED at WBC in Package 6 has been made taking into account the lesson and experience from project implementation thus far. Per the experience from previous contracts, once the contract is signed, there will be “mutual check zero” (MC 0) exercise to verify the latest condition before civil work starts. During MC 0, further efforts will be made to reduce involuntary resettlement impacts and it is likely the number of PAPs will be further revised downwards. It should be noted that a total estimation of structures as mentioned earlier is based on a conservative approach and assumes the maximum number of affected structures based on the DED. It is expected that the number of affected structures will be significantly smaller once impact minimization through minor field redesign and works methodology adjustments are applied. This is based on lesson learned from implementation of RP for the previous seven completed packages.

4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described.The Borrower has undertaken a comprehensive environmental impact assessment (including social impact assessment) process that has informed the project design of the potential risks associated with project

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activities. Various alternatives to either avoid these risks altogether or to reduce them to acceptable levels have been considered in these assessments. As part of this process, the project has designed a set of mitigation and oversight monitoring measures to ensure that the project will comply with both the national and sub-national level requirements, as well as the World Bank's own safeguards policy requirements.

The project implementation responsibilities are aligned with the existing institutional and sector responsibilities, to help ensure long term sustainability, including of the environmental and social safeguards measures introduced by the project. The restructuri ng will introduce one additional of PIU that will undertake the technical studies and analytical assessments to review the master plan on flood management in Cisadane – Jakarta – Bekasi area. The four PIUs are now: (i) Ciliwung Cisadane River Management Agency (BBWSCC), the Directorate General for Water Resources (DGWR) of the Ministry of Public Works and Housings (MPWH), (ii) Environmental Sanitation Development, the Directorate General for Human Settlements (DGHS) of MPWH, (iii) Water Resource Agency (Dinas SDA), the government of DKI Jakarta and finally the new PIU, and (iv) the additional PIU – the Water Research Center (PusAir), Research and Development Agency (Balitbang), MPWH.

Except for PIU PusAir, BBWSCC will be responsible for carrying out the remaining dredging and rehabilitation works in the selected key floodways, canals and retention basins, and the pumping station. The other two PIUs have completed their parts of the works under the project. DKI Jakarta is responsible for all project social safeguards arrangements, whilst each municipality will be responsible for their implementation. The JUFMP dredge material disposal locations are operated by separate entities independent of the JUFMP. The Ancol CDF is operated by the concessionaire and operator of the reclamation project, PT. Pembangunan Jaya Ancol (PT. PJA). The Bantar Gebang landfill is managed by the Sanitary Agency (now called Environmental Agency) of DKI Jakarta, while PPLi is a private commercial provider of hazardous waste disposal services.

A Central Project Implementing Unit (CPIU) was established by DGWR to oversee and coordinate the overall preparation and implementation of the project by the four PIUs. The CPIU is implementing common activities, including (i) the overall construction supervision i.e., the Supervision Consultant (SC), (ii) the Floods Management Information Systems (FMIS), (iii) support to DKI Jakarta related to involuntary resettlement and the project's grievance redress system; (iv) support to PusAir related to the master plan review. These common activities are of key importance to provide capacity support, and to supervise and monitor the project environmental and social safeguards measures.

The environmental impact assessment process in Indonesia (referred to as the AMDAL) has also been followed (with some augmentation described below) and is aligned with the JUFMP works packaging structure. An AMDAL package consists of the (i) ANDAL, which is the Environmental Impacts Assessment (EIA), (ii) RKL, which is the Environment Management Plan, and (iii) RPL, which is the Environment Monitoring Plan. For JUFMP, the provisions of the AMDAL is supplemented by the JUFMP Phase 1 Supplementary Report. This supplementary report includes further recommendations which will also be applicable to the project. This ensured that the AMDAL and supplementary report, combined, formed the project-related Environment Impact Assessment (EIA) which complied with the World Bank environmental safeguards policy requirements (Environmental Policy OP 4.01). During project preparation, the PMU prepared the Environmental and Social Management Framework (ESMF) which has been reviewed by the World Bank, and disclosed during project preparation. The EIAs for all originally planned works have been prepared by the CPIU and have been disclosed. These EIAs were consulted upon, reviewed and approved by the provincial level environmental agency (known as the BPLHD) as required by national and sub-national regulations of Indonesia. The World Bank has also reviewed the EIAs to its satisfaction. EMP (RPL/RKL) updates have been submitted to the BPLHD quarterly, which also forms part of the monitoring and supervision of the project implementation. The ESMF will continue to be applied to the project, and will

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guide and apply to the process for preparing the environmental safeguards documents required for the new additional works i.e., the Sentiong Pumping station.

Construction of the boundary walls for the confined disposal facility (Ancol CDF) was completed in 2011. The first AMDAL for the Ancol reclamation works prepared by PT. PJA, was approved by BPLHD in February 2006 where 12 million m3 of sand and 400,000 m3 of laterite were proposed as the fill material. This was prior to the proposal for the JUFMP project. The AMDAL was subsequently updated to provide for non-hazardous JUFMP dredge material to be utilized as part fill material for the Ancol CDF, reducing sand requirements to 8.6 million m3. The updated AMDAL was reviewed and approved by BPLHD in March 2009. It is worthy to note that the Ancol reclamation project was planned to be implemented irrespective and independent of whether JUFMP proceeded or not. The primary objective of PT. PJA as a concessionaire as stated in the AMDAL was not to receive JUFMP disposal material but to reclaim about 119 hectares of land in Jakarta Bay for future commercial residential developments (as is typical of this area of Jakarta Bay since 1964). This notwithstanding, Ancol CDF is an integral part of JUFMP. The Bank had reviewed the Ancol AMDAL documents. The review included assessment of a proposed design change of the northern boundary (dyke) of the CDF in March 2011, for which the recommendations of the Bank review of the proposal was acknowledged and adopted prior to the approval of the change by BPLHD. To address gaps found in the Ancol AMDAL documents, the CPIU prepared an Ancol Updated RKL/RPL Supplementary Report. This supplementary report contains the additional measures which are applicable to the project. This ensured that the AMDAL and supplementary report for Ancol CDF, combined, formed the project-related Environment Impact Assessment (EIA) which complied with the World Bank environmental safeguards policy requirements with regards to the disposal of JUFMP material. The Bank has undertaken samplings as complementary measure to ensure the quality of sediment deposited in Ancol CDF. The latest sampling was done in December 2016.

Bulky solid waste from JUFMP is transported to the Bantar Gebang sanitary landfill, while hazardous sediment material (if any are found) is planned for disposal at the PPLi secure landfill in Bogor. The Bank team assessed both facilities during project preparation and found both to be adequate and acceptable for the project. Bantar Gebang landfill had the capacity to receive the solid wastes expected from the project and the site has a valid operating permit and is in compliance with local regulations. Current disposal is about 7,000t/day (about 28,000 m3). The total amount of solid waste estimated from project is about 95,000 m3 over a four year period i.e., equivalent to less about 0.3% of the normal average existing solid waste receipt. To date, the amount of solid waste larger that the specified size for separation (30 cm x 30 cm) have been minimal, thus only a few trucks of these items have been disposed at the Bantar Gebang landfill. The PPLi secure landfill in Bogor is a 50 hectare landfill with a total capacity of over 3 million tons and capacity to process 22,000 tons of waste annually. About 2 hectare of the landfill had been utilized. A double composite liner, constructed of bentonite clay and high-density polyethylene (HDPE), lines the landfill's base, which prevents any leachate from contaminating the surrounding environment. New waste is covered with soil or a synthetic material on a daily basis. Once an area of the landfill fills to capacity, it is capped with clay and a HDPE liner to prevent water from seeping into the closed landfill cell. Based on site assessment, it was confirmed that the PPLi facility meets the national and sub-national regulation as well as Bank safeguards requirements , and is adequate provision to accommodate any reasonable amount of hazardous material which may be found at JUFMP sites. To date, pre-dredging sampling and tests at JUFMP sites have not found any hazardous material, thus the PPLi facility has not yet been utilized by JUFMP.

Preliminary social assessment study was carried out in 2008 (SA Study). In addition, social impact assessments were also carried out in 2009 - 2010 as part of the EIA process.. In addition to standard EIA consultation processes, specific Focus Group Discussions (FGDs) were also carried out in each project site to communicate the project to the relevant communities, obtain more detailed information on the environmental and social impacts of the project, and gauge communities’ support for the project. Both resettlement-related

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and non-resettlement related potential social impacts were identified in these assessments and processes. DKI Jakarta has prepared the project Resettlement Policy Framework (RPF) to clarify the principles, procedures and organizational arrangements to be applied to the preparation of RPs for the project where involuntary resettlement is identified. The RPF has been reviewed and found satisfactory by the World Bank, and disclosed during project preparation.

All applicable environmental and social safeguards documents related to JUFMP works (including those related to the Ancol CDF) have been disclosed. The applicable environmental safeguards documents for the additional Sentiong pumping station will be completed, reviewed to the Bank’s satisfaction and disclosed prior to the works contracting.

All project sites were screened for PAPs and an RP prepared in accordance with the RPF where PAPs cannot be avoided. The RPs identified affected people and lay out the framework for compensating and restoring the livelihoods of entitled households with a clear and agreed timeline between the PAPs and DKI Jakarta. RPs (locally known as LARAPs) have been prepared for seven project locations screened to include involuntary resettlement. All RPs were reviewed by the World Bank. The review focused on ensuring that the RPs have been prepared in accordance with all the provisions of the RPF and the adequacy of implementation arrangements, e.g., implementation plans and budget. The RPs have been publicly disclosed and have been implemented prior to any works commencing at the associated site. DKI Jakarta supported by the Construction Supervision Consultant (CSC) has established a project Grievance Redress System (GRS) that functions, amongst others, to receive and address / resolve resettlement-related complaints. Implementation of RPs for five sites has been completed, i.e. Waduk Sunter Utara, Waduk Sunter Selatan, Sentiong-Sunter Drain, Pakin-Kali Besar-Jelakeng Drain and Krukut Cideng. The remaining RP at the two remaining sites involving involuntary resettlement (Package 6) involving 344 HHs - 233 HHs at West Banjir Canal and 111 HH at Upper Sunter Drain – will be disclosed after project restructuring and will be implemented during the extended timeframe of the restructured project. In the meantime, communication and consultations were undertaken to keep the community inform of the project status and to receive feedbacks. Consultations with community representatives took place at the sites on March 1 and 7, 2017. Prior to the construction works, another round of minimization exercise will be conducted (via the “MC 0” exercise as described in Section II.A.3 above) to try to further reduce resettlement impacts. In the event that this is possible, the RP will be revised again and redisclosed.

The Construction Supervision Consultant (CSC) plays a key role to monitor, supervise and provide technical assistance to ensure that PIUs implement the works consistently and in line with the DEDs, and to support DKI Jakarta in establishing and managing the project Grievance Redress System (GRS). The CSC monitors project linked sites and areas adjacent to project sites and report any relevant activities - especially those that could involve resettlement. To date, there are no linked activities carried out at the linked sites. As of November 2016, there were 21 complaints have been received (all related to works at project sites) and handled by the project GRS system, with the support the CSC. The nature of the complaints were related to construction-related inconveniences and damage (i.e. sheet piling work causing wall cracking. These complaints were taken up with the contractors and resolved on site – through communication and consultation with the community on schedules and contractors repairing any construction-related damage.

On the GRS, it should be noted that there is an existing and well established complaints handling systems in DKI Jakarta, operating through various channels. In most cases, persons or communities who felt disturbed, being treated unfairly or are unhappy about any project can file a complaint to the head of RT (neighborhood level) who will then put it forward to the head of RW (hamlet level). If the complaint cannot be solved at the RT/RW level, the heads of RT and RW will take the case to the kelurahan level (where the case is handled by the Section of Governance Affairs and Public Order). The case will be officially registered at the kelurahan level. The parties in disputes (e.g. citizen, communities, contractor or other

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government institutions), the kelurahan council and staff will discuss and try to resolve the case. If no resolution is agreed at the kelurahan level, the case is sent to the higher kecamatan level (sub-district level), and finally to the kotamadya level (municipal level) if still unresolved at kecamatan level. The latest development for GRS is through DKI Jakarta Smart City application (android) called “Qlue”, in which anyone (directly impacted PAPs or indirectly PAPs) can file any complaint regarding the project implementation.

5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people.Stakeholders involved in this project can be categorized into four levels. At the central level, there is a Joint Steering Committee, chaired by the National Development Planning Board (BAPPENAS), which is responsible for policy decisions. For project management at the national level, a Central Project Monitoring Unit (CPMU) in the Directorate General of Water Resources (DGWR), the Ministry of Public Works and Housing (MPWH) is responsible for project coordination and monitoring; a Central Project Implementing Unit (CPIU) in DGWR is responsible to coordinate the preparation and implementation of the project, including environmental and social safeguards-related issues. The CPIU coordinates the activities of four Project Implementation Units (PIUs): (i) BBWS Ciliwung-Cisadane, DGWR, (ii) Environmental Sanitation Development (PPLP), (ii) the Directorate General for Human Settlements (DGCK), MPWH, (iii) the Water Resource Agency (Dinas SDA) of DKI Jakarta, and (iv) the Water Research Agency (Pus Air), MPWH. The first three PIU are responsible to carry out the dredging and rehabilitation works in the selected key floodways, canals and retention basins, and the Sentiong pumping station. The Environmental and Social Working Group (ESWG) of the PIU DKI Jakarta is responsible for coordinating the preparation and implementation of safeguards-related issues, and the PusAir will be responsible for the technical studies and analytical assessments to review the master plan on flood management in Cisadane – Jakarta – Bekasi area.

Consultations on the EIAs, RPF, RPs and DEDs is a key pre-requisite for compliance with both Indonesia and World Bank requirements and these have been occurring and will continue to occur on an ongoing basis going forward during implementation. Broader consultations between DKI Jakarta, government agencies, academia, civil society and other stakeholders on various issues be they technical, engineering, planning or social, have also been occurring in parallel over several years and will also continue going forward. The consultative process for the project has been widespread over the period of project preparation and implementation and has occurred at multiple levels depending on the target stakeholders and issues being discussed. During project implementation, interactions with the communities near the project sites are mandated with a minimum number of contract required periodic meetings with the community included in the works contracts. The project site offices (POSKOs) maintained at each project site during works construction will amongst others served as public information centers. These POSKOs also served as an easily accessible venue to receive feedbacks (including complaints) about the project from community to carry out consultation as required.

The various public consultations carried out during the project preparation covered issues related to the project objectives and scope / components, institutional and implementation arrangements, project timetables, environmental impacts and mitigation plans, social impacts (including resettlement), other community concerns, and plans for ongoing community consultations and involvement. In addition to EIA mandated consultations, a series of Focus Group Discussions (FGDs) were also carried out covering all kelurahans ('urban village' administrative areas within the municipalities) in which the project sites are located. The purposes of the FGDs were to (i) update communities on the status of the project, and (ii) obtain community feedback and aspirations. Participants comprised representatives from the kelurahan offices, Board of Trustees of the kelurahans, Community Guidance Officers (Babinsa), Head of the Family Welfare Program (PKK), community leaders, heads of community neighborhoods (RT and RW), and representatives of the communities of the project sites.

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Lesson learned from completed packages through these consultations were extremely useful and informative. In general, the potentially affected people and their communities showed high support of the project which alleviates seasonal flooding, causing them hardship and significant economic losses. The potential PAPs however also expressed concern about the construction related impacts and nuisances, and the likelihood of even further worsening of traffic congestion and delays during the construction period and took account of the feedbacks i.e. (i) providing for regular community interactions / consultation in the construction contracts, (ii) requiring contractors to develop and implement traffic management plans to reduce congestions, (iii) requiring contractors to implement good construction practices that minimizes spillages, odors, etc., and (iv) establishing a project grievance redress system. The consultation for the preparation of RPs were done with the local levels of government /community leaders (mainly kelurahan, RT/RW) with this in turn being done either by group meetings at the kelurahan offices or by multiple small meetings moving from RT / RW to RT / RW. More intensive consultations with PAPs were conducted and will be continued after cut-off dates, among others to keep track of the lists of the PAPs and the affected assets, to continue dialogue and discussions on resettlement assistance options and relocation schedules, etc., as part of the RPs preparation . Consultations with the potential project affected person continues in the preparation of physical activities in the final remaining dredging and embankment rehabilitation contract (Package 6) and are expected to be completed either in groups or plenary, depending on the specific situation in each site..

B. Disclosure Requirements If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why::

C. Compliance Monitoring Indicators at the Corporate LevelPHCompliance

The World Bank Policy on Disclosure of InformationHave relevant safeguard policies documents been sent to the World Bank's Infoshop?

Yes [X] No [] NA []

Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs?

Yes [X] No [] NA []

PHCompliance

All Safeguard PoliciesHave satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies?

Yes [X] No [] NA []

Have costs related to safeguard policy measures been included in the project cost?

Yes [X] No [] NA []

Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies?

Yes [X] No [] NA []

Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents?

Yes [X] No [] NA []

III. APPROVALS

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Task Team Leader(s): Name: Fook Chuan Eng,Iwan Gunawan

Approved By:Safeguards Advisor: Name: Peter Leonard (SA) Date: 24-Mar-2017

Practice Manager/Manager: Name: Date: