LAND ACQUISITION AND RESETTLEMENT PLANland acquisition and resettlement plan merasap pltm september...

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PT. PLN (PERSERO) KANTOR PUSAT

INO: Renewable Energy Development Sector Project

Mesarap Mini-Hydropower Project (PLTM)

LAND ACQUISITION AND RESETTLEMENT PLAN

S e p t e m b e r 2 0 0 2

THIS IS NOT A BOARD APPROVED DOCUMENT.

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Renewable Energy Development Sector Project

LAND ACQUISITION AND RESETTLEMENT PLAN

Merasap PLTM

September 2002

Table of Contents LIST OF TABLES 2 ACRONYMS AND ABBREVIATIONS 2 0.EXECUTIVE SUMMARY 2 1.BACKGROUND 4 2.SCOPE OF LAND ACQUISITION AND RESETTLEMENT 5 3.SOCIOECONOMIC INFORMATION 7 4.OBJECTIVES, POLICY FRAMEWORK, AND ENTITLEMENTS 9 5.CONSULTATION AND GRIEVANCE REDRESS PARTICIPATION 12 6.COMPENSATION, RELOCATION, AND INCOME RESTORATION 15 7.INDIGENOUS PEOPLES DEVELOPMENT PLAN 16 8.INSTITUTIONAL FRAMEWORK 19 9.RESETTLEMENT BUDGET AND FINANCING 20 10.IMPLEMENTATION SCHEDULE 21 11.MONITORING AND EVALUATION 22

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APPENDICES 23 Appendix I: Maps of Project Location 24 Appendix III: Impact Assessment 27 Appendix V: Impacts on Trees/Crop 28 Appendix VI: Signed Agreements on Compensation Payments 29 Appendix V: Communication Concerning Specific Action for Development Plan 31 Appendix VIII: Consultation Notes 39 Appendix VIII: Implementation Plan 43 List of Tables Table 1: Land Use by the Project 5 Table 2: Key Effects of the Project 6 Table 3: Entitlement Matrix by Type of Loss 10 Table 4: Compensation Rate for Land Acquisition 11 Table 5: Recent Consultations held with APs 12 Table 6: Public Participation Plan 13 Table 7: Budget Estimate for Community Development Measures/Infrastructure 17 Table 8: Specific Action for Community Development Plan 18 Table 9: Institutional Framework for Resettlement Issues 19 Table 10: Land Acquisition and Resettlement Costs 20

Acronyms and Abbreviations

ADB Asian Development Bank APs Affected Persons BAPPENAS National Development Planning Agency CPFPG Compensation Policy Framework and Procedural Guidelines DGEEU Directorate General of Electricity and Energy Utilization DMS Detailed Measurement Survey EA Executing Agency GoI Government of Indonesia ha hectare; 1 ha = 10,000 square meters IP Indigenous People km kilometer kW kilo-watt LAC Land Acquisition Committee LAR Land Acquisition and Resettlement LARP Land Acquisition and Resettlement Plan m2 square meter M&E Monitoring and Evaluation NGO Non-Government Organization NJOP Tax Object Selling Price PLN PT PLN (PERSERO) PLTM Mini Hydropower Project PMU Project Management Unit RAP or RP Resettlement (Action) Plan Rp. Indonesian Rupiah SDU Social Development Unit

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0. Executive Summary

The Merasap PLTM will affect 29 persons in 5 households. One temporary house has to be relocated, but no household has to be resettled. In addition, land owned by the church council has to be compensated. A total area of 54,847 m2, all plantation land, is needed for the project. PLN has acquired this land in 1997 for a total budget of 41 million Rp. Furthermore, the local community and PLN have agreed on a development plan for 4.8 billion Rp. In several consultations, the affected people have confirmed their agreement with the project.

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1. Background

The Merasap mini hydro power plant (PLTM) will be implemented by Perusan Listrik Negara (PLN) as a core-subproject of the Renewable Energy Development Sector Project (REDSP) to be financed by the Asian Development Bank (ADB). The REDSP was previously combined with another component which has now become an independent project (the Transmission Lines Improvement Sector Loan ) into the Renewable Energy Development and Transmission Lines Improvement Sector Project. The REDSP has the objective to expand power generation using renewable energy sources in five Outer Islands provinces to promote poverty-reducing growth, and extend power supplies to new consumers Given the small size of the Merasap PLTM, the effects of land acquisition and resettlement on the local community are minimal. The land has already been acquired by PLN in 1997. Therefore the subproject requires only a Short Resettlement Plan. Details on the compensation policy framework and procedural guidelines are given in a separate report. The project does not have broad consequences to the entire community in the sense of extensive livelihood losses or introduction of different land-tenure systems, nor does it involve major socio-economic impacts to localized socio-cultural systems. Therefore no separate Indigenous Peoples Development Plan is required. However, this resettlement plan includes a description of the specific action needed for the local community to mitigate the project impacts, as required by the ADB's policy on Indigenous Peoples.

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2. Scope of Land Acquisition and Resettlement

2.1 Project Location

Merasap mini hydro power plant (PLTM) has an installed capacity of 2 x 750 kW, and will feed into the local 20 kV grid, which interconnects the villages Seluas, Sanggau-Ledo, Ledo and Bengkayang. The feeder line to the existing distribution grid will have a length of 6 km. For the final section - access to the powerhouse - an access road of 4 km length will have to be built. The plant is located in the northwest corner of West Kalimantan, in the Regency of Bengkayang (until 2000 a part of the Regency of Sambas), District of Sanggau Ledo, near the village of Pisak. A map of the project location is given in Appendix I.

2.2 Land Use

For the construction of the components, including dam, waterway, penstock, power house and access road, 54,847m2 of privately owned land are needed. Details are given in Table 1. Additional land required for the project is owned by the government.

Table 1: Land Use by the Project

Components Total Land Acquired (m2)

Dam Site 1,608 Open Channel 9,101 Tunnel 15,444 Power House 13,306 Access Road 15,388 20 kV Distribution Line 0 *) see Note Total 54,847

*) The detailed measurement survey for the 6 km feeder to the existing 20 kV distribution line still has to be carried out. One round pole requiring approximately 20 x 20 cm of land would be erected every 55 meters. For the 6 km of line about 108 single poles with a total land requirement of 108 x 20 x 20 cm = 4.3 m2 would be necessary. The poles will be erected along the access road, so that no additional land will have to be acquired.

2.3 Key Effects

According to the Impact Survey carried out in 1995 the Merasap PLTM affected 5 households with 29 persons and land owned by the church council, as shown in Table 2. One temporary house had to be relocated, but no household had to be resettled.

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Table 2: Key Effects of the Project

Item Unit Parameter Number of affected households No. 5 Number of affected persons No. 29 Thereof women (%) % 45 Affected Land in m2 m2 54,847 Affected Land as % of Total Owned Land % 12 Number of severely affected households (>30% of land affected) No. none Number of houses to be relocated No. 1 (temp.) Number of affected trees No. 2,037 Other losses/effects none The detailed inventory of impacts is given in Appendix II. Appendix III lists the impacts on trees and crops. In the immediate vicinity of the project site is a cave which is used as a chapel. It holds a Maria statue and a few benches. The cave is about 10 meters away from the river, but it will not be inundated by the project or physically affected in any other way. About 40 to 50 meters away from the cave is a waterfall with some aesthetic value. This waterfall will lose some of its beauty as an effect of the reduced water quantity in the river. PLN has acknowledged the concerns of the local community regarding this issue and agreed to a development plan to upgrade the cave as a religious site (see Chapter 7). The project does not have broad consequences to the entire community in the sense of extensive livelihood losses or introduction of different land-tenure systems, nor does it involve major socio-economic impacts to localized socio-cultural systems.

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3. Socioeconomic information

The village of Pisak has 2,205 inhabitants in 568 households. The people belong to the Sara and Lara groups of Dayak Bekati, one of over 200 tribal groups described as Dayak. The Dayak are predominantly Christian, and the Maria cave ("Gua Maria") near the future location of the Merasap PLTM is an important religious site for the Catholics of the area. The Dayak are indigenous to Kalimantan; most of the Dayak in West Kalimantan are sedentary swidden (slash-and-burn) cultivators; they produce rice but continue to derive a substantial part of their livelihood from forest products, including tree crops such as durian (a fruit), rubber and resin. Slash-and-burn cultivation is not practiced by the villagers of Pisak; their main cash crop is pepper, and they also grow rubber trees and various kinds of fruit trees. The Dayaks traditionally lived in a community in longhouses. Like many other Dayaks, the villagers of Pisak have abandoned the communal lifestyle of the longhouses and live in individual dwellings. Land, forests, and rivers, used to be the three most important elements of nature that formed the basis of biological as well as spiritual life of the Dayak. Today the Dayak culture and the environment in West Kalimantan is threatened as a result of the previous government’s policy of transmigration along with commercial exploitation of the forests. West Kalimantan with its population of 3.5 million to 4.1 million was seen as ideal for transmigrants because of its low population density and abundance of natural resources. Under Suharto, between 1971 and 1980, more than 100,000 transmigrants were sent to Kalimantan. In the following two decades the national transmigration program was expanded and more groups arrived including the Madurese, Javanese, Banjarese, and ethnic Chinese, from Java, Madura, Bali, Sulawesi and Sumatra. As in many areas where this policy was practiced, the large numbers of transmigrants exacerbated ethnic tensions between the new and existing populations and tipped the population balance against the indigenous Malays and Dayaks. When the Madurese first settled in Kalimantan, they established their own communities separate from the Dayak. The Madurese controlled most of the small businesses, markets and low-cost transportation systems in urban areas of Kalimantan. The economic rivalry that has tarnished the Madurese-Dayak relationship contributed to the crisis between the two groups. Growing inter-ethnic tensions between the two communities prompted the Dayak to regard the Madurese community with increasing hostility. Violence between the two groups erupted in West Kalimantan in 1996 and reoccurred in 1999. During 1999-2000, the area of Sambas witnessed some of Indonesia's most vicious ethnic killings. These conflicts all inflicted a devastating loss on the Madurese community to the point where most survivors have fled Kalimantan. There are practically no Madurese left in the surroundings of the project and the district of Sanggdao-Ledo.

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The Indonesian government has not recognized the Dayak system of land registration and considers these areas to be state land. The 1960 Basic Agrarian Law No.5, which gave rights to customary communities like the Dayak, was not adhered to when the Suharto regime came into power. Instead, Suharto adopted new laws that provided the government with legal powers to allocate land for forestry and mining interests. With the passage of these laws, no barrier remained to prevent the government from opening transmigration projects and allocating forestry and mining concessions in areas occupied by Dayak. The change in policy towards Dayak land tenure and the 1967-68 laws allowed for the large-scale development of Kalimantan’s forests by logging and plywood companies, and the construction of commercial plantations. In many areas, forests have been cleared to make way for cash crops such as cocoa and oil palm, displacing the Dayak and their traditional lifestyle in the process. Irresponsible land clearing and logging has contributed in part to uncontrolled forest fires in Kalimantan. The policies of the central government over the past few decades have made the Dayak feel that their community has been marginalized socially, economically and politically. In Kalimantan, Dayak villages were historically governed by traditional institutions that varied greatly from village to village. A 1979 law, entitled Law on Village Government No. 5, called for the creation of uniform structures of local government throughout Indonesia. The law had the effect of undermining the authority of traditional village leaders and the cohesion of the Dayak communities. Further, Dayak today are poorly represented in the government, civil service, police and army. In Western Kalimantan, only one of the province’s six districts, and also the most remote, is headed by a Dayak. Against this background, PLN recognizes the potential vulnerability of the community affected by the project and acts according to the guiding principles that: • their rights are acknowledged: Although legally the land owned by the affected

people may be considered government land, PLN has accepted the local perception of private ownership of this land and compensated it accordingly.

• the local community is given the opportunity to participate in the planning of the Merasap PLTM development: In several consultations from 1995 onwards, the local community was encouraged to state their requirements for specific compensation measures

• ensure that the local community benefits from the project: In co-operation with the local community, the church council and the local government, a development plan was prepared, focussing on the development of the religious site in the project area.

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4. Objectives, policy framework, and entitlements

4.1 Policy Framework

Land acquisition and resettlement for Merasap PLTM will be governed by: • the Presidential Decree No. 55-1993 (Keppres) of Indonesia, • other local laws and regulations, • ADB’s Resettlement Policy and ADB's Policy on Indigenous People • PLN's compensation policy. Presidential Decree No. 55/1993 on Land Acquisition for the Development of the Public Interest defines options for compensation including cash, substitute land, formal land title, and resettlement; emphasizes the importance of community consultation for agreement with the affected people on the form and the amount of compensation; and specifies grievance procedures for landowners. The Regulation of the Minister of State for Agrarian Affairs and National Land Agency No. 1 of 1994 on Operational Directive of the Decree 55/93 on the Acquisition of Land for the Construction in the Public Interest is the enabling regulation for implementing the Decree. These policies and laws are consistent with the policy on Involuntary Resettlement of the ADB. The Bank's policy on Involuntary Resettlement is set out in the Involuntary Resettlement Policy (November 1995), and in the Handbook on Resettlement (1998). This resettlement policy has the following objectives and principles: • Involuntary resettlement should be avoided where feasible. • Where population displacement is unavoidable, it should be minimized by

exploring all viable options. • People unavoidably displaces should be compensated and assisted, so that

their economic and social future would be generally as favorable as it would have been in the absence of the project.

• People affected should be informed fully and consulted on resettlement and compensation options.

• The absence of a formal legal title to land by some affected group should not be a bar to compensation

• Particular attention should be paid to women and other vulnerable groups, and appropriate assistance provided to help them improve their status.

• As far as possible, involuntary resettlement should be conceived and executed as a part of the project.

• Land occupation will begin only after full compensation. ADB's policy on indigenous people has the objective to ensure that indigenous peoples have opportunities to participate in and benefit equally from development.

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PLN carries out land acquisition, compensation and resettlement of its power projects in accordance with the Indonesian Laws and Regulations. PLN's compensation policy was introduced in 1996 with PLN's General Policy Concerning the Establishment of Overhead Transmission Lines, which is also applied to generation projects. For the ADB funded Renewable Energy Development and Power Transmission Improvement Sector Project, ADB principles are applied as well.

4.2 Eligibility

All affected persons losing land, buildings, plants and other objects related to the land will be compensated and rehabilitated in accordance to the type and amount of their losses (Presidential Decree No. 55/1993, Art. 12). Compensation is also given to persons using land without any titles (Regulation No. 1/1994, Art 20). Compensation to all eligible APs has already been paid. In the unlikely case that after contract award the final design will be revised by the contractor in a way that additional land is affected by the project, any people affected by these changes will be eligible for compensation as well.

4.3 Entitlements

According to Art. 12 of the Presidential Decree No. 55/1993, affected persons are entitled to compensation in the form of (i) cash, (ii) land for land, (iii) resettlement (substitution for houses), (iv) any combination of these compensation forms or (v) other form of compensation which are agreed by parties concerned, such as provision of infrastructure facilities for the community in compensation for community land. Based on the analysis of the impact of the project, an Entitlement Matrix has been prepared as a guide to compensation payments (see Table 3 below). The Matrix describes eligibility and payments according to the type of loss.

Table 3: Entitlement Matrix by Type of Loss

Type of Losses

Entitlement Compensation Policy Other Measures

Permanent land loss

Legal owners of land and owners without title

• cash compensation at replacement cost, or

• land in substitution (land for land)

• for land owned by the community: compen-sation in form of provi-sion of infrastructure facilities

• Rehabilitation allowance • Re-training for

alternative employment • Training for project-

related construction and operational jobs

Temporary land loss

Legal owners of land and owners without title

• cash compensation at market rates

• contractor has to restore the land to its original condition

Houses and structures

Owner of the structure • cash compensation at replacement rates

• or resettlement (house for house)

• moving (transport) allowance

• rehabilitation allowance

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Type of Losses

Entitlement Compensation Policy Other Measures

Trees and Crops

Persons who utilize the land where trees and crops are located

• trees: cash compen-sation at market rates

• crops: cash compen-sation at market rates

• replantation or production loss considered

Business losses *)

Owners of the affected business

• cash compensation

*) No business losses have been identified in association with the construction of the Merasap PLTM. Furthermore, according to the ADB's policy on indigenous people, the community is entitled to compensation in the form of community development.

4.4 Compensation Rates

For the land acquisition at Merasap PLTM, the compensation rates have been defined and agreed with the affected persons during consultations and negotiations in 1997. The compensation payments were handed over to the affected people against receipt on December 13, 1997. The document signed by the affected people and the Head of Sembas District is provided in Appendix IV.

Table 4: Compensation Rate for Land Acquisition

Item Unit Compensation Rate (Rp.)

Land m2 500 Building no. 500,000 Artocarpus polyphemal Cempedak no. 9,000 Durio zibethinus Durian no. 11,800 Guava Jambu no. 9,800 Orange Jaruk no. 5,500 Jengkol-fruit Jengkol no. 8,500 Cacao Kakao no. 4,000 Rubber big Karat no. 10,000 Rubber small Karat no. 2,500 Coconut Kelapa no. 8,500 Nutmeg big Kemiri no. 9,000 Nutmeg small Kemiri no. 4,500 Coffee Kopi no. 5,000 Pepper Lada no. 10,000 Lansium domesticum Langsat no. 5,700 Manggo Mangga no. 5,600 Jackfruit Nagka no. 11,000 Petai-fruit Petai no. 11,500 Palm Pinang no. 2,750 Rambutan-fruit Rambutan no. 5,000

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5. Consultation and Grievance Redress Participation

5.1 Consultation

The entire land acquisition and resettlement program will be carried out with participation of and in consultation with the affected persons. The public consultation process for the Project began in 1995 with surveys by Billitonica Indo Matra Consultant while they were preparing the feasibility study for the project. Various methodologies were used for the consultations, such as: • surveys of affected people • formal and informal interviews with affected people on a household basis

discussions with village leaders • community meetings with affected people and other stakeholders. Negotiation of compensation rates for houses, land and trees and negotiations on non-monetary compensation of other project effects took place in 1997. Compensations payments were finalized on 13 December 1997. During the consultations in 1995 to 1997 and again in 2001 and 2002, local people expressed their concern about the proximity of the project to the Maria cave. PLN has acknowledged the concerns of the local community regarding this issue and agreed to a development plan to upgrade the cave as a religious site. A set of activities was agreed 1997 between the local community, the church council, the local government and PLN (see Chapter 7). Since then several consultations have been held with the affected persons of Merasap PLTM, as shown in the table below. In these consultation, the local community confirmed their support of the project and expressed their hopes that the project will finally proceed.

Table 5: Recent Consultations held with APs

Date Location Issues Participants 30 Sept 2001 Sanggau

Ledo Discussion with stakeholders on project impacts

Local ethnic leader, representative of affected people, head of local church council

11-17 Nov 2001 Impact survey and informal interviews

all affected families

4-5 May 2002 Sanggau Ledo

ADB Field visit, discussion with affected people and stakeholders

village/sub-village leaders, adat council leaders, religious leaders (pastor and church council), Informal Leaders and the affected people

Consultation notes are provided in Appendix VI. The consultation process will continue during the further stages of project development and implementation, as shown in the table below. Since land

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acquisition and resettlement has been completed already, public participation will focus on the implementation of the community development plan.

Table 6: Public Participation Plan

Purpose of Event Form of Event Implementing Agencies

Target Participants

Remarks

Before Implementation of Resettlement Plan Disclosure of LARP Public

announcement PT PLN Project Office, village head

All APs • disclosure of LARP • distribution of information booklet

to APs During Implementation of Resettlement Plan Inform APs and beneficiaries of pro-ject progress, final design, and timing

Community meet-ings and focus groups

PT PLN Project Office, village committee

APs, stake-holders, be-neficiaries

• meetings to be held with APs and with beneficiary population

After Resettlement and Compensation Monitoring and Evaluation (during resettle-ment)

Household interviews, group discussion, site investigation

PT PLN Project Office, LAC, external monitor

All APs or random sample depending on # of APs

• monitoring of compensation pay-ments and compensation in kind

• monitoring of land evacuation • monitoring of rehabilitation

measures Monitoring and Evaluation (six months after end of resettlement)


PT PLN Project Office; independent external monitor.


• monitoring of rehabilitation measures

• monitoring of any grievances

Monitoring and Evaluation (after the end of construction)


independent external monitor


• monitoring of results of the resettlement program

• assessment of rehabilitation and satisfaction of APs

5.2 Disclosure of the Resettlement Plan

This Land Acquisition and Resettlement Plan will be translated in Bahasa Indonesia and handed over to the village head who will make it available to anyone wishing to consult the document. Copies in Bahasa Indonesia will also be available at the respective PLN Project Office. In addition a booklet in Bahasa Indonesia summarizing the Compensation Policy Framework and Procedural Guidelines will be distributed to all affected families. Copies of the Land Acquisition and Resettlement Plan and the Compensation Policy Framework and Procedural Guidelines in English will be available at the ADB Headquarters in Manila and the ADB Resident Mission in Jakarta, as well as on ADB's website.

5.3 Grievance Procedure

Consultation and participation of the APs should serve to minimize the occurrence of major grievances. However, in order to ensure that the affected people have avenues for redressing their grievances related to any aspect of land acquisition and resettlement, complaints and grievance procedures have been established for the Project, in accordance with the Presidential Decree No. 55/1993, Art. 19-21 and Regulation No. 1/1994, Art. 18 & 22: 1. Any grievances should first be addressed to the respective PLN Project

Office of the regional PLN.

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2. If the issue cannot be resolved satisfactorily in direct discussion between PLN and the AP, the AP can then appeal to the respective Land Acquisition Committee No. Nine for assistance in the negotiation. The Land Acquisition Committee is chaired by the Head of the Regency (Bupati) and has the power to decide the matter.

3. If the AP is still not satisfied with the response then he has the legal right to submit the appeal to the Governor of the Province.

The AP may request the village leader or the independent monitoring agency (NGO or university) to assist in proceeding his complaint. The grievance lodged by an affected person can relate to any aspect of the land acquisition and resettlement program, including the compensation rates being offered for their losses. This procedure also applies to any grievances that may arise from the land acquisition concluded in 1997.

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6. Compensation, Relocation, and Income Restoration

Compensation payments as negotiated with the affected people were finalized on 13 December 1997. One temporary house had to be removed from the affected area. The household was compensated in cash. None of the land owners had to sell more than 30% of his land to the project or is any other way severely affected. One household had to sell 22%, while on average 12% of the land owned by the affected people was required for the project. Therefore no special provisions for income restoration are included in this Resettlement Plan.

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7. Indigenous Peoples Development Plan

A general description of the affected people and key effects of the project have been provided in Chapters 3 and 2.3, respectively. In accordance with ADB's policy on indigenous peoples, specific actions were devised to compensate the project effects on the local community beyond the cash compensation already paid to the affected people. Consultations involved the local community, the church council and the local government. The church council developed an initial list of 22 requests for discussion with PLN and the local government (see Appendix V). The final agreement on specific actions for community development in September 1995 comprises a total of 11 items, focusing on the development of the "Gua Maria" (Maria Cave) in the vicinity of the project location. The Maria cave is an important religious site for the Catholics of the area, and the development of the site would contribute to local development. The site attracts worshippers and tourists from the neighboring districts and even from Malaysia (the capital of Sarawak, Kuching is only two hours by road away from Pisak and a regular bus service exists already from Kuching to Pontianak, the capital of West Kalimantan). Better access to the cave via an access road, improvement of the site facilities (such as a surrounding fence and entrance gates) as well as electricity supply to the cave are expected to greatly improve the attractivity of the site. An increase in the number of visitors to the site will create additional business opportunities for the local community. For this reason, the government of the Bengkayang regency has indicated its willingness to contribute to the development, in particular of the access road, and provide part of the funds required. As confirmed in a letter dated 7 September 1995 from the Head of Sambas regency to the Governor of West Kalimantan (included in Appendix V). PLN has agreed to fulfil the following requirements of the local community: Provision of Infrastructure: • Construction of access roads to the location of the Maria Cave and Merasap

Waterfall (from Segonde hamlet and from Sahan village), with a total length of 11 km

• Construction of a concrete embankment (retaining wall) along the river in front of the cave, and construction of permanent fences around the praying site

• Construction of a gate at the entrance of the Maria Cave and rehabilitation of the existing gate

• In addition PLN agrees to rehabilitate the foreground of the cave at PLN's expense in the (highly unlikely) case that the foreground of the cave is flooded.

Economic and financial assistance to the local community: • Employment opportunities for local people during the construction of the

Merasap PLTM project • Credit facility (soft credit) for the electricity connection to the Maria Cave

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• Credit facility (soft credit) for the people of Segonde hamlet for electricity connection

Other activities: • Issuing of a letter of agreement

! This request has already been fulfilled with the commitment letter dated 7 September 1995 from the Head of Sambas regency to the Governor of West Kalimantan confirming the agreements reached.

• Comparative Study to provide the local community with information on experience gained in similar projects ! This request has already been fulfilled: PLN Pontianak has accompanied local people to Sibolga (North Sumatra) and to another site in Java to show them a similar mini-hydro project, so that they could assess its the impact on the community and get an understanding for the situation to be expected when the Merasap PLTM is implemented.

Guiding principles: no specific action required: • The Maria Cave shall remain in its present status. • Local traditional ceremonies to safeguard workers and ensure safe execution

of the project shall be performed and local customs must be respected. The budget for the infrastructure measures was estimated at 3.8 billion Rp. at 1995 prices, corresponding to approximately 4.8 billion Rp. in 2002 prices, as shown in table below. The local government (Bengkayang regency) has confirmed their willingness to partially fund the development plan with 100 to 150 million Rp.

Table 7: Budget Estimate for Community Development Measures/Infrastructure

Item Quantity Unit Price (Rp.)

Total (1997 Rp.)1)

Total (2002 Rp.) 2)

Access Road to Maria Cave (11 km, 3 meters wide)

33,000 m2 100,000 3,300,000,000 4,242,857,143

Fence (2 meters high) 500 m 325,000 162,500,000 208,928,571 Fence (2 meters high) 1000 m 168,750 168,750,000 216,964,286 Embankment / Retaining walls 1 pc. 100,000,000 100,000,000 128,571,429Subtotal Embankment / Fence 431,250,000 554,464,286 New gate 1 pc. 25,000,000 25,000,000 32,142,857 Rehabilitation of existing gate 1 pc. 10,000,000 10,000,000 12,857,143Subtotal Gates 35,000,000 45,000,000Total Estimate 3,766,250,000 4,842,321,429rounded 4,842,000,0001) based on an exchange rate of 7,000 Rp./US$ 2) based on an exchange rate of 9,000 Rp./US$ Where applicable, the agreed measures of the community development plan will be implemented before the start of construction of the Merasap PLTM. With regard to the provision of infrastructure, the measures will be included in the scope of work of the contractor for Merasap PLTM, and the contractor will be required to give priority to these measures. Employment opportunities for local people during construction will be created with commencement of work of the contractor. After

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completion of the project, the Government of Indonesia (Ministry of Finance) will provide credit facilities for electricity connections via the KLP Scheme (Kredit Listrik Perdesaan - Credit facility for electrification of villages). This sequence of action has been considered in the implementation schedule (see Chapter 10) The following table summarizes the specific actions, responsibility, budget and time frame of the Community Development Plan.

Table 8: Specific Action for Community Development Plan

No.*) Activity Respon-sible

Budget Estimate

Timing

Provision of Infrastructure 1 Access road to Maria Cave

- from Segonde hamlet - from Sahan village

PLN/ Head of Bengka-yang Reg.

4.2 billion Rp. to be included in contractor's scope

7 Concrete embankment and fence at Maria Cave

PLN 554 million Rp. to be included in contractor's scope

8 Gates at Maria Cave PLN 45 million Rp. to be included in contractor's scope

3 Rehabilitation of foreground of the cave in case of flooding

PLN as required (low pro-bability of occurrence)

Economic and financial assistance 6 Employment opportunities

during construction PLN - at start of construction

9 Credit facilities for electricity connection to Maria cave

PLN - after completion of the project

10 Credit facilities for electricity connection for local people

PLN - after completion of the project

Other activities 5 Letter of Agreement all parties - completed

11 Comparative Study PLN n.a. completed Guiding principles

2 Unchanged status of cave PLN - no action required 4 Performance of and respect for

local customs PLN - as required

*) as per Letter of 7 Sep 1997 (see Appendix V)

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8. Institutional Framework

An institutional framework has been developed for this Project in order to ensure timely establishment and effective functioning of appropriate organizations mandated to plan and implement land acquisition, compensation, relocation, income restoration and livelihood programs. The main institutions involved in the preparation and implementation of the Land Acquisition and Resettlement Plan are: • PT PLN as the executing agency • the local government institutions represented in the Land Acquisition

Committee (LAC) No. Nine according to Presidential Decree No. 55/1993, Art. 6&7

• Non-governmental organizations (NGOs or universities) The roles of these institutions in the resettlement process are summarized in the table below.

Table 9: Institutional Framework for Resettlement Issues

Institution/ Organization

Responsibilities

PT PLN • budgeting, financing, implementation and co-ordination of all land acquisition and resettlement-related activities

PLN Social Development Unit (SDU) within central Project Manage-ment Unit (PMU)

• co-ordination of all LARP activities within the sector project • internal monitoring and appointment of NGOs for external monitoring of

resettlement activities • review of monitoring reports and remedial actions, when necessary • reporting to ADB

Local Project Office (local PMU)

• detailed census surveys, in association with respective levels of governments.

• obtaining of authorization for land use and house/structure demolition. • implementation of al LARP activities for the respective project • special measures for the income and livelihood rehabilitation of APs • public consultation and participation programs • direct negotiation of compensation with AP, if required with assistance of

LAC • witnessing of disbursement of compensation payments by LAC to AP • internal monitoring

Land Acquisition Committee No. Nine (LAC) and its member organizations/ agencies

• detailed inventory survey on land, buildings, vegetation, and other assets • identification of the legal status of the land • determination of compensation value of the land and other assets • information of the land owners about the development plan and the

objectives of land acquisition • negotiations on behalf of the APs with PLN on the form and amount of

compensation • disbursing and witnessing delivery of compensation money to the owners

of land and other assets • dealing with grievance cases

NGOs/university • external monitoring of compensation payments and implementation of resettlement plan

• representation of AP interests, if required

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9. Resettlement budget and financing

Based on the impact survey shown in Appendix II and the compensation rates for land acquisition shown in Table 4, the budget for land acquisition and resettlement for the Merasap PLTM Project, as paid out in 1997 was Rp. 40.8 million. This amount includes compensation payments, committee honorarium, administration and operational costs according to the Regulation of the Minister of State for Agrarian Affairs and National Land Agency No. 1 of 1994.

Table 10: Land Acquisition and Resettlement Costs

Item Amount (Rp.) Land 27,423,500 Houses/Structures 500,000 Trees/Crops 11,395,250 Subtotal 39,318,750 Committee Honorarium (1%) 707,400 Administration (2%) 353,700 Operational Cost (1%) 411,000 Total 40,790,850

The detailed cost breakdown is provided in Appendix IV. For any unforeseen expenses arising from grievances or revisions of the final design, contingencies of 10% of the original compensation payments (4,800,000 Rp.) should be budgeted. Cost for monitoring is estimated at 20 million Rp. The budget for the community development plan is estimated at 4.8 billion Rp. The total budget for land acquisition and compensation, including the sunk cost of payments made in 1997 thus amounts to: Compensation payments and expenses in 1997 40,790,850 Rp. Contingencies 4,800,000 Rp. Monitoring costs 20,000,000 Rp. Community Development Plan 4,842,000,000 Rp.

Total 4,907,590,850 Rp. Total 2002 budget estimate without sunk cost 4,866,800,000 Rp.

PT PLN is responsible for the financing of land acquisition and resettlement costs under the Project and also has agreed in 1997 to fund the additional measures within the development plan. PT PLN will budget, allocate and disburse all related payments. The local government (head of Bengkayang Regency) intends to contribute 100 to 150 million Rp. to the funding of the development plan (see Consultation Note of 30 September 2001 in Appendix VI).

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10. Implementation Schedule

Based on the time schedule of the Project, a preliminary implementation schedule for the land acquisition and resettlement has been prepared (see Appendix VII). The guiding principles for the implementation schedule are: • Land acquisition, land evacuation and demolition of houses must be

completed within the preparatory stage of the engineering construction and before the beginning of relevant civil engineering works.

• It must be ensured that all APs, prior to their physical relocation will have: i) been adequately consulted about the Project, its impacts and compensation entitlements; ii) received compensation payments in a timely manner; and iii) provided with means to establishing livelihood.

• No person or family will be asked to relocate unless the above steps have been completed.

Since land acquisition activities have been completed already, these principles have been applied already. Some affected families still cultivate the land that they sold to PLN (only plots along the access road), but in recent consultations they have confirmed that they will evacuate the land when required. PLN shall inform these people in time of the start of construction and ensure that they have evacuated the land before construction starts. In addition, • The compensation measures under the Indigenous Peoples / Community

Development Plan shall be completed before the start of construction, where applicable.

The infrastructure measures within the Development Plan will be included in the scope of work of the contractor for Merasap PLTM, and the contractor will be required to give priority to these measures. Employment opportunities for local people during construction will be created with commencement of work of the contractor. After completion of the project, the Government of Indonesia (Ministry of Finance) will provide credit facilities for electricity connections via the KLP Scheme (Kredit Listrik Perdesaan - Credit facility for electrification of villages).

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11. Monitoring and evaluation

As a policy requirement of the ADB, both internal and external monitoring of the Resettlement Plan are carried out. • Internal monitoring will be conducted by PLN. • External monitoring will be assigned to an independent monitoring agency,

such as a qualified NGO or a university. The independent monitoring agency will be commissioned to monitor the compensation and resettlement process, and to conduct post-evaluation of the resettlement program six month after the completion of resettlement and again after the end of construction to assess whether the resettlement objectives have been achieved.

Data and information will be gathered through various methodologies, such as : As a policy requirement of the ADB, both internal and external monitoring of the Resettlement Plan are carried out. • Internal monitoring will be conducted by PLN. • External monitoring will be assigned to an independent monitoring agency,

such as a qualified NGO or a university. The independent monitoring agency will be commissioned to monitor the compensation and resettlement process, and to conduct post-evaluation of the resettlement program six month after the completion of resettlement and again after the end of construction to assess whether the resettlement objectives have been achieved.

Data and information will be gathered through various methodologies, such as : • interviews with affected households • discussion with village leaders • community meetings • questionnaires surveys • specific focus group interviews with vulnerable persons • site investigation. Monitoring takes place against the activities, entitlements, time frame and budget set out in this resettlement plan. Monitoring indicators are provided in the Compensation Policy Framework and Procedural Guidelines. PLN will be responsible for any remedial action needed to address unresolved resettlement issues and concerns. Reporting periods are as follows: • Internal monitoring reports will be prepared every 6 weeks during the

resettlement phase, and every 3 months thereafter. • PLN will report to ADB in the form of quarterly progress reports. • External monitoring reports will be prepared after each monitoring exercise;

they will be integrated into the biannual reports submitted to ADB.

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MERASAP PLTM LAND ACQUISITION AND RESETTLEMENT PLAN APPENDICES


Appendix I: Maps of Project Location

Location Map Site Plan Layout




Appendix II: Impact Assessment

Form1&2 for Merasap.xls


Appendix III: Impacts on Trees/Crop

Merasap-larp.xls


Appendix IV: Signed Agreements on Compensation Payments


Transcript of Signed Agreements on Compensation Payments

merasap-larp.xls


Appendix V: Communication Concerning Specific Action for Development Plan


Letter of the Head of Sambas Regency to the Governor of Kalimantan Barat 7 September 1995




Extract of the letter of the Head of Sambas Regency to the Governor of Kalimantan Barat 7 September 1995

Subject : Efforts to overcome the community concerns regarding the development of PLTM near the Maria Cave/Merasap Waterfall, village of

Pisak, District of Sanggau Ledo, Regency of Sambas. This letter was based on the agreement on 22 August 1995 between the people of Pisak village and other parties: 1. Member of DPRD Tingakt II Kabupaten Sambas 2. Officers of PLN Jakarta 3. Officers of PLN Singkawang 4. Head of Kantor Sospol Kabupaten Sambas (Dept. of Social Policy, Sambas

Regency) 5. Head of section of Ketertiban Setwilda Tingkat II Sambas (Dept. of Security) 6. Heas of section of Tata Pemerintahan Setwilda Tingkat II Sambas

(Secretariat of Regency) 7. Head of section of Humas Setwilda Tingkat II Sambas (Public Relations) 8. Management components of Ledo and Seluas Districts 9. Church Council of Bengkayang, Sanggau Ledo, Ledo and Seluas 10. Informal leaders of Sanggau Ledo The following are the 11 items agreed by PLN among those of the 22 points of requirements asked by the local people: 1. Construction of road to the location of Maria Cave, and from Segonde Hamlet

to the location of Maria Cave Merasap Waterfall, 11 Km in total. 2. Maria Cave shall be still in the existing position 3. In the future, if the foreground of the Maria Cave is flooded, then PT. PLN

shall make a restoration and cost/budget will be paid by PT. PLN 4. Local traditional ceremonies to safeguard workers and ensure safe execution

of the project shall be performed and local customs must be respected. 5. Letter of agreement must be issued (as written document) 6. Local people shall be integrated as workers in the Merasap PLTM

development 7. Concrete embankment (retaining wall) and fence at sacred site of Maria

Cave shall be build. 8. Construction of a gate into Maria Cave and rehabilitation of the existing gate. 9. Credit facility (soft credit) for electricity connection to the Maria Cave site. 10. Credit facility (soft credit) for the people of Segonde hamlet for the electricity

installment. 11. To conduct a Comparative Study [The religious leaders from Sanggau Ledo

should be sent for a comparative study to other area with the same type of project as the Merasap PLTM.]


CATHOLIC CHURCH COUNCIL SANGGAU LEDO REGION ST. PIUS X BENGKAYANG

22 August 1995

Duplicate of Draft of Items to be Agreed by Both Parties

1. Construction of road to the location of Maria Cave, and from Segonde Hamlet

to the location of Maria Cave Merasap Waterfall, 11 km in total. 2. Maria Cave shall be still in the existing position. 3. In the future, if the foreground of the Maria Cave is flooded, then PT. PLN

shall make a restoration and the cost/budget will be paid by PT. PLN. 4. Local traditional ceremonies to safeguard workers and ensure safe execution

of the project shall be performed and local customs must be respected. 5. Letter of agreement must be issued (as written Document). 6. Security Officer shall be recruited from the local people. 7. Local people shall be integrated as workers on Merasap PLTM. 8. Concrete embankment (retaining wall) and fence at sacred site of Maria

Cave shall be build. 9. Development of concrete stairs to the praying/religious sites (2 places). 10. Development of parking area. 11. Construction of a gate into Maria Cave and rehabilitation of the existing gate. 12. Construction of 6 units of Water Closet (WC)/for men and women. 13. Construction of Chapel (size 8 X 12 m). 14. Rehabilitation of the Pastoral house and a room for clothing change. 15. Construction of security post (2 units). 16. Credit facility (soft credit) for electricity connection to the Maria Cave site. 17. Construction of foreground for religious activity (cements/concrete). 18. Credit facility (soft credit) for the people of Segonde hamlet for the electricity

installment. 19. If possible, the dam site of Merasap PLTM may be moved 10 m. 20. The local people may be used as workers for the development related to

Maria Cave (particularly for unskilled labor) 21. Except for road construction, local labor shall be used for project

construction. 22. To conduct a comparative study Note: Items 10, 13, 14, 15 and 16 are not included in Document Form and will be discussed later.

Sanggau Ledo, August 22, 1995 Signed by: 1. K.V. Tongkok (Church Council) 2. Mozaludin (on behalf of PLN) 3. M. Harsianipar (Regional Parliament of Sambas Regency) 4. Drs. E. Irawadi (Regional Government of Sambas Regency)


CATHOLIC CHURCH COUNCIL SANGGAU LEDO REGION ST. PIUS X BENGKAYANG

13 August 1995

Formula of the Catholics' Aspiration in relation with written agreement with

PT. PLN about PLTM Development Plan near the Maria Cave Location/Merasap Waterfall

Referring to the letter of Uskup Agung in Pontianak No. 709/95/DP dated April, 29 1995, concerning the opinion of Uskup Agung, as the Head of Catholic Church, regarding the development plan of Merasap PLTM by PT. PLN near the Maria Cave location / Merasap waterfall. The Catholics at Sanggau Ledo Paroki Region, St. Pius X Bengkayang, propose some conditions, as follows: A. NON-PHYSICAL ASPECTS: 1. PT. PLN is requested to keep the sustainability of the natural resources in the

surroundings of the cave, and should pay attention to any related pollution with the project development. The Maria Cave shall be in the existing location and shall not be disturbed.

2. Any agreement related to the development plan of physical and non physical aspects shall be under a Notary Act.

3. Permanent staff and nonpermanent staff for the project activities of Merasap PLTM should be taken from the local people of Sanggau Ledo region, Paroki Bengkayang, considering their expertise and skills, and Catholics if possible.

4. PT. PLN shall collaborate with the Church Council in the recruitment of permanent and non permanent staff for the development of Merasap PLTM, so that the Council will always be aware of the work situation, such as : - The specialists (skilled labor) may come from central or regional areas. - Semi-skilled labor may come from central, regional or local area

(Sanggau Ledo) - Unskilled labor and security officers may come from local area (Sanggau

Ledo) 5. The Council assists in the certification of lands at Maria Cave/Merasap

Waterfall conducted by the BPN (Agrarian Office). 6. The religious leaders from Sanggau Ledo should be sent for a comparative

study to other area with the same type of project as the Merasap PLTM. B. PHYSICAL ASPECTS: 1. The Construction of permanent road and bridge:

- From the Segonde Cross up to the Maria Cave, about 6 km. - From the Maria Cave to the Village of Sahan about 6 km. - A hanging bridge, from Maria Cave a cross the river.

2. Construction of embankment along the river at the frontline of the Maria Cave location. Construction of embankment to avoid flood as high as 2 m from the foreground of the Maria Cave, and construction of permanent fences around the praying site as high as 2 m, complete with the entrance and exit doors.


3. Improvement of the floor for praying activities with tile, and construction of 3,000 units of chairs.

4. Construction of permanent stairs to the praying room, and stairs to the location of the Merasap Waterfall.

5. Construction of pastoral house, completed with the “meeting room (aula)”, size 12 X 28 m, permanently with tile floor.

6. Construction of 6 units of public WC, 3 for men and 3 for women, in the entrance and exit gate.

7. Construction of barricade fence surround the Maria Cave. 8. Construction of permanent gate into the location of Maria Cave. 9. Development of permanent parking areas for 2 wheel vehicles nearby the

entering gate (2 places), 1 unit from Segonde direction and 1 other at the cross of Maria Cave, and parking area for 4 wheel vehicles.

10. Construction of permanent security post (2 units), 1unit on near will be located near the entering gate from Segonde village, and 1 unit near the gate from Sahan village to Maria Cave, size 3 X 4.

11. Illumination all facilities at the Maria Cave, and continuous donation to the Maria Cave institution.

12. Provide soft credit facility for electricity installation for the Sangau Ledo people.

13. If possible, the dam location of Merasap PLTM may be moved around 10 m.

Sanggau Ledo, August 13, 1995


Appendix VI: Consultation Notes

Project: Merasap PLTM Date: 30 September 2001 Location: Sanggau Ledo Subject: Consultation with stakeholders regarding their opinion on the

project and identification of project impacts Participants Function Organization Anselmus Pagau M. Salim NN Edi Cahyono Jan K.R. Mustakim Heru Gendroyono Mr. Sunan

Ethnic leader AP Head of local Paroki (church council) Socio-economic Analyst Marketing Directorate Construction Div. HRD Head of sub-division

Dayak Indigenous Community SV, SLD Segonde village, Bengkayang IKA PT PLN Jakarta PT PLN Pontianak PT PLN Pontianak PT PLN Bengkayang

Issues discussed: • perception of the local community of the development of Merasap project • requirements of the local community as compensation for the project impacts

(community development plan) • commitment of the local government (Bengkayang regency) to partially fund

the community development plan with 100-150 million Rp. • reliability of the current system of power supply (diesel station) and importance

of the development of Merasap PLTM for power supply • importance of power supply for local and regional economic development


Letter of Support by the Head of Bengkayang Regency, 11 February 2002


Project: Merasap PLTM Date: 5 May 2002 Location: Rumah Panjang (Longhouse) of Pisak Subject: Consultation with affected people and stakeholders as part of

the ADB Fact-finding Mission Participants Function Organization Mr. Dr. Jacobus Luna Head of Bengkayang Regency (Bupati) Bengkayang Regency Mr. Yustinus Suherman Acap Head of Adat Council Bengkayang Regency Mr. Clemen Camat (District Leader) Sanggau Ledo District Mr. H. Djalaludin Village Leader Lembang Village Mr. Sipil Hamlet Leader Dawar Lama hamlet Mr. Sinon Hamlet Leader Sigering hamlet Mr. FX. Moses Leader of Catholic Church Council Sanggau Ledo Mr Kristo staff of Education Office,

Member of Church Council in 1995 Sanggau Ledo District

Affected people and other local people Mrs Yue-Lang Feng Senior Environmentalist ADB Mr. Ayato Hirano Financial/Energy Specialist ADB Mr. Harris Soewarso Public Relations PLN Jakarta Representatives of PLN Regional V and Prokitring (West Kalimantan Project Office) Mrs. Dwi Setianingsih local consultant IKA

Minutes of Meeting: The meeting and discussion with the local people was opened and chaired by the Bupati. Mr. Bupati explained the purpose of the fact finding Mission of the ADB Team, and the reasons for the delay in the development of Merasap PLTM. Mr. Clemen (Camat or District Leader of Sanggau Ledo) also confirmed his support of the project, for which the local people have been waiting now for 7 years. Then Mr. Bupati gave time for the representatives of the local people to explain their comments and opinions on the development plan of Merasap PLTM. 1. Mr. Yustinus Suherman Acap (Head of Adat Council Bengkayang Regency). He had been sent by PT. PLN (with PT. PLN team), for a comparative study to Sumatra in July 1999, which has hydropower projects similar to the Merasap PLTM. He said that it is difficult for the local people to understand why the Merasap PLTM still has not been started. They have been waiting now for 7 years from the first survey in 1995 until 2002. All local people hope that the Merasap PLTM can be implemented as soon as possible and they will fully support the project development. 2. Mr. Kristo, staff of Education Office in Sanggau Ledo District, ex. Member of Church Council of Sanggau Ledo District in 1995. He confirmed his full support for the project and he will help to ensure that the development plan of Merasap PLTM runs well. 3. Mr. H. Djalaludin, Leader of Lembang Village, this village is next to Pisak Village near the Merasap PLTM location.


He has a small shop which sells kerosene, and a small stationary shop with a photocopy machine. He was very supportive of the development plan of Merasap PLTM and hopes that it can be realized soon. He also said that most people in the surroundings of the project location area are farmers, and still need more electricity for drying their farm products like corn and pepper. Using electricity to dry the agriculture products is simpler and cheaper than using kerosene. For cooking, people using kerosene and sometime firewood. 4. Mr. Sipil, Leader of Dawar Lama sub-village (hamlet) of Pisak Village He said that he represented the Pisak Village Leader who could not attend the meeting, but is fully supportive of the development plan of Merasap PLTM and hopeful that Merasap PLTM can be implementation soon. 5. Mr. Sinon, Leader of Sigering sub-village (hamlet) of Pisak Village, pepper farmer After thanking Mr. Bupati, PT. PLN and the ADB team for coming to Merasap, he said that he found the compensation payment negotiated with PLN in 1997 fair. He fully supports the project plan, and hopes that the water resources in the up-stream area of Merasap Waterfall will be maintained, so that the water resources in the down-stream area of the Tanggi River are not disturbed by deforestation or illegal logging. The trees in an area of 50 meters on both sides of the river should not be cut. 6. Mr. Matius Salim, the Project Affected People from Segonde Hamlet, Pisak Village He said that he agreed with the compensation price for land paid in 1997 before the monetary crisis (Rp. 300 per m2). He represented the affected persons, who wholeheartedly gave the land to the PT. PLN for the project in the public interest. He expressed his hope that the agreement between the people and PT. PLN will be honored by PT. PLN. Local people will not accept any deviations from the agreement. He also said that paying Rp. 30,000 to Rp. 40,000 for electricity every month is to difficult for them. People hope that the implementation of the Merasap PLTM project will lead to a reduction in electricity cost. 7. Mr. FX. Moses, Leader of Catholic Church Council of Sanggau Ledo and staff of Education Office in Sanggau Ledo Mr. Moses represents the more than 4,000 Catholics in Sanggau Ledo District. He said that the Catholics fully support the development plan of Merasap PLTM and hope that Merasap PLTM can be implemented soon. He confirmed the urgency of Merasap PLTM project, and expressed his hope for a speedy development of the project after this meeting, because action is needed now after so many meetings conducted for this plan.


Appendix VII: Implementation Plan

Implementation Plan v2.xls

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