Document o f The World Bank FOR OFFICIAL USE ONLY Report No: 33.585-ID PROJECT APPRAISAL DOCUMENT FOR A PROPOSED MULTI-DONOR TRUST FUND FOR ACEH AND NORTH SUMATRA GRANT IN THE AMOUNT OF US$85 MILLION TO THE REPUBLIC OF INDONESIA FOR A COMMUNITY-BASED SETTLEMENT REHABILITATION AND RECONSTRUCTION PROJECT FOR NANGGROE ACEH DARUSSALAM (NAD)AND NIAS, PHASE 1 September 23,2005 Urban Development Sector Unit East Asia and Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
Document o f The World Bank
FOR OFFICIAL USE ONLY
Report No: 33.585-ID
PROJECT APPRAISAL DOCUMENT
FOR A
PROPOSED MULTI-DONOR TRUST FUND FOR ACEH AND NORTH SUMATRA GRANT
IN THE AMOUNT OF US$85 MILLION
TO THE
REPUBLIC OF INDONESIA
FOR A
COMMUNITY-BASED SETTLEMENT REHABILITATION AND RECONSTRUCTION
PROJECT FOR NANGGROE ACEH DARUSSALAM (NAD) AND NIAS, PHASE 1
September 23,2005
Urban Development Sector Unit East Asia and Pacific Region
This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents may not otherwise be disclosed without Wor ld Bank authorization.
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CURRENCY EQUIVALENTS (Exchange Rate Effective M a y 25,2005)
Currency Unit = Indonesian Rupiah IDR 1,000 = US$0.105
U S $ l = IDR9,470
BI Bappenas BPK BPKP
B P N BRR
Bupati CBO C D A C H U CQ CSIA CSP cso C S W - N A D
Desa
D H W S Dinas Permukiman D I P A
DHPF-BRR
DMC DSCC EIA FMR GAM GO1 I C I C B IDP ILO I O M K D P Kelurahan K E W
K P
K P K
FISCAL YEAR January 1 - December 31
ABBREVIATIONS AND ACRONYMS
Bank Indonesia National Development Planning Board Badan Pemeriksa Keuangan (Supreme Audit Agency) Badan Pengawas Keuangan Pembangunan (Development Finance Controller) Badan Pertanahan Nasional (National Land Administration Agency) Badan Rehabilitasi dan Rekonstruksi (Agency for Rehabilitation and Reconstruction for Aceh and Nias) District Head Community-Based Organization Community-Driven Adjudication Complaints Handling Unit Selection based on Consultants’ Qualifications Continuous Social Impact Assessment Community Settlement Plan C iv i l Society Organization Community-Based Settlement Rehabilitation and Reconstruction Project for Nanggroe Aceh Darussalam Province Rural village Directorate o f Housing and Public Facilities of BRR Directorate o f Housing and Public Facilities Settlement Department in CityDistr ict level Dafter Isian Proyek Pusat (Approved Central Government Detailed Project Budget) District Management Consultant District Shelter Coordinating Committee Environmental Impact Assessment Financial Monitoring Report Free Aceh Movement Government o f Indonesia Individual Consultants International Competitive Bidding Internally Displaced People International Labor Organization International Organization for Migrat ion Kecamatan Development Program Urban Ward Komite Rehabilitasi Permukiman (Community Trustee Committee for Reconstruction and Rehabilitation) Kelompok Permukian (sub-villagehub-kelurahan community groups on settlements) National Anti-conuption Commission
K P P N K S M LAP1 L C S L M P D P M D T F A N S M&E M I S MOF MOU MPW NAD NBF NCB NGO N S PCAR PIMPRO PJSJ PJOK
PMU P O M
QCBS R A L A S
RFP S A SESAF SFB SOCB SOE SPZD S P M SPN SPPD sss TA TNI TORS T P K UN UNDB UNDP UPK UPP UN-HABITAT WWF
QBS
FOR OFFICIAL USE.ONLY Kantor Pelayanan Perbendaharaan Negara (Treasury Office) Self-help community groups / kelompok swadaya masyarakat Land Administration Project Least Cost Selection Land Management and Policy Development Project Mult i -Donor Trust Fund for Aceh and Nor th Sumatra Monitor ing and Evaluation Management Information System Min is t ry o f Finance Memorandum o f Understanding Min is t ry o f Public Works Nanggroe Aceh Darussalam Province N o n Bank Financed National Competitive Bidding Non-Govemmental Organization National Shopping Procurement Capacity Assessment Report Pimpinan Proyek (Administrative Unit) Project Implementation Unit Penanggung-Jawab Operasional Kegiatan (Project Manager at Kecamatan Level) Project Management Unit Project Operational Manual Quality-Based Selection Quality and Cost Based Selection Recovery o f Property Rights and Reconstruction o f Land Administration System Request Fo r Proposals Special Account Social and Environment Safeguard Framework Selection under a Fixed Budget State-Owned Commercial Bank Statement o f Expenditure Surat Permohonan Pencairan Dana (Payment Request) Surat Perintah Membayar (Payment Order) Surat Perbendaharaan Negara (Nation Treasury Letter) Support for Project and Program Development Single-Source Selection Technical Assistance Indonesian National Army Terms o f Reference Tim Pelaksana Kegiatan (Village-level project implementation team) United Nations United Nations Development Business United Nations Development Programme Unit Pelaksana Keuangan (Sub-District, Financial Management Unit) Urban Poverty Project Uni ted Nations Centre for Human Settlements Wor ld Wi ld l i fe Fund
Vice President: Jemal-ud-din Kassum, E A P V P
Sector Director: Keshav Varma, E A S U R Country Director: Andrew Steer, EACIF
Task Team Leaders: Aniruddha DasguptdGeorge Soraya, EASUR
This document has a rest r ic ted distribution and may be used by recipients only in the performance of their official duties. I t s contents may not be otherwise disclosed without World Bank authorization.
Provisional L i s t o f Desa and Kelurahan Targeted by the Project ----- 24 Detailed Description o f Project Components ............................ 28
Collaboration among the Four MDTF-Approved Projects ------------ 36 Terms o f Reference for Housing Facilitators ............................ 33
Organigramme o f Implementation Structure ............................ 43 Overview o f Monitoring and Evaluation Systems ...................... 45 Environmental and Social Safeguards Framework ..................... 49
Financial Management and Disbursement Arrangements -------------- 75
Anti-Corruption Action plan ________________________________________------- 63 71
Implementation Schedule and Planned Progress ........................ 83 Construction Materials: Supply and Demand Conditions in Project h e a s ___________________-____________________-------- 84 Terms o f References for the Proposed Technical Assistance Activities ________________________________________---------------- 88
Country Director: Andrew D. Steer Sector ManagedDirector: Keshav Varma
Team Leader: Aniruddha Dasguptd George Soraya Sectors: Housing construction (70%);General water, sanitation and flood protection sector (30%) Themes: Access to urban services and housing (P);Natural disaster management (S)
For LoandCredi ts/O thers : MDTFANS Grant Amount (US$m.): 85,000,000.00 Total Bank financing (US$m.): 0.00
Tel: 62-21-727961 55/58 Fax: 62-2 1-727961 55
Expected effectiveness date: October 15, 2005 Expected closing date: June 30, 2008
Does the project depart from the CAS in content or other significant respects? Does the project require any exceptions from Bank policies?
[ ]Yes [XINO [ ]Yes [X INO
Have these been approved by Bank management? [ ]Yes 1. IN0 I s approval for any pol icy exception sought from the Board? [ ]Yes [ IN0
[ X]Yes [ ] N o
[XIYes [ ] N o
Does the project include any critical r isks rated “substantial” or “high”? Re$ PAD Executive summarypage 6, Technical Report Part V I Does the project meet the Regional criteria for readiness for implementation? Project development objective The main objective o f the project i s to support the Government o f Indonesia’s efforts in restoring the living conditions (housing and basic infrastructure) o f the communities affected by the devastating effects o f the earthquake and tsunami that struck Nanggroe Aceh Darussalam and Nias on December 26,2004 by: (a) contributing to the Government o f Indonesia’s grant program for settlement rehabilitation and reconstruction, targeting an estimated 200 rural and urban villages affected by the disaster; and (b)providing institutional support to the Directorate o f Housing and Public Facilities (DHPF) under the Aceh Reconstruction Agency (BRR), the lead agency in settlement reconstruction for Nanggroe Aceh Darussalam and Nias. Re$ PAD, Technical Report Part II Project description Component A: Shelter Repair and Reconstruction Grants Component B: Block Grants for Priority Infrastructure Component C: Project Implementation Support Component D: Program Support, Monitoring and Evaluation Re$ PAD, Technical Report Part II-B Which safeguard policies are triggered, if any? Environmental Assessment (OP/BP/GP 4.01) Involuntary Resettlement (OP/BP 4.12) Forests (OP/BP 4.36) Re$ PAD, Annex G. Significant, non-standard conditions, if any, for: Re$ PAD Executive Summary Board presentation: None Grant effectiveness: (a) a draft budget allocation, which satisfies the requirements o f the Project, for the f i rst year o f the Project, including hnding for local level implementation, has been prepared by GoI; (b) the head o f P M U ( Project Manager) has been appointed; (c) the terms o f reference for the PMC, including those o f the financial management experts, have been approved by IDA; and (d) a draft circular letter, which satisfies the requirements o f the Project, shall have been prepared by the Director General o f Treasury o f the Ministry o f Finance for disbursement o f sub-grants. Covenants applicable to project implementation: (a) a Project Operational Manual, acceptable to the IDA, issued by MPW; (b) Memorandum o f Understanding signed among the project managers o f KDP, UPP, W A S to
define responsibilities o f each project, coordination arrangements and scope o f collaboration for implementing training activities;
(c) An agreement has been reached between the P M U and a state-owned commercial bank (SOCB), selected by the MPW, and acceptable to IDA, to provide services in channeling grants to beneficiaries; and
(d) Financial Management experts o f the project have been recruited.
EXECUTIVE SUMMARY
Summary. Across Indonesia, Aceh and Nias bore the major brunt o f the December 26,2004 earthquake and tsunami disaster. The scale o f the disaster i s unprecedented - more than 230,000 people died or remain missing, hundreds o f communities were washed away, many local governments collapsed, and normal social, and economic l i fe devastated. People’s homes were particularly hard hit, with init ial estimates o f over 280,000 houses destroyed or severely damaged, leaving over 700,000 people homeless. A study conducted by donor agencies (July 2005) indicates downward estimates: about 181,000 people deceased or missing and about 100,000 housing units required. The program, composed o f two projects, Phase 1 and Phase 2, will facilitate the in-situ reconstruction and rehabilitation o f up to 50,000 houses by helping families rebuild their own houses and assisting communities to reconstruct their settlements in a manner more resilient to future disasters. The program forms the core o f the Government o f Indonesia’s Settlement Rehabilitation and Reconstruction Strategy for the affected region, and i s designed to enable and empower devastated communities to participate and initiate the process o f rebuilding their lives, homes, and livelihoods. This f irst project wil l take advantage o f existing national community-driven development (CDD) projects in Aceh and Nias to deliver housing support for 25,000 units to families rapidly and equitably. The delivery mechanism i s already being tested in several Acehnese communities through pi lot activities initiated by existing IDA-financed projects.
The Relationship of this Project with the Government’s Reconstruction Strategy. The ultimate goal o f the post-tsunami reconstruction effort i s to assist the recovery o f living conditions and livelihoods o f the affected population. Providing access to safe, well-designed housing, basic services, and tenure security constitutes a critical step in making this recovery a reality. Towards this goal, the Government o f Indonesia (GOI) formulated the “Comprehensive Human Settlements Rehabilitation and Reconstruction Strategy”, a pol icy framework for the formulation o f a human settlements rehabilitation and reconstruction program that addresses not only housing, but also tenure and socio-economic issues through active community participation and partnership with the local governments. This comprehensive Strategy serves as the backbone of the Multi-Donor Trust Fund (MDTF)-funded Community-based Settlements Rehabilitation and Reconstruction Project for Nanggroe Aceh Darussalam (NAD) and Nias (CSRRP-NAD).
In M a y 2005, GO1 established the Badan Rehabilitasi dan Rekonstruksi (BRR: Agency for Rehabilitation and Reconstruction for Aceh and Nias), whose mandate i s to lead the implementation o f GOI’s reconstruction program. Given the massive challenge o f reconstruction and the need for the BRR to mobilize swiftly, it i s critical that the project should systematically support this agency throughout implementation.
The project’s overriding principle i s to develop a mechanism that allows the population to plan and decide o n investments, control funds, implement projects, account for funds expended, and maintain works constructed. The project provides technical assistance both at the community (in the planning and construction processes) and the program (GOI) levels.
T o effectively support GOI’s comprehensive program, the proposed project strategically allies with the following MDTF-approved projects:
(a) (b) (c)
Kecamatan Development Project (KDP) (US$18 million); Urban Poverty Project (UPP) (US$64.6 million); and Recovery o f Property Rights and Reconstruction o f Land Administration System (RALAS) ($US28.5 million).
In particular, the project builds o n the r i ch experience o f other CDD operations: Kecamatan Development Projects and Urban Poverty Projects.
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Relationship with Other Donor Programs. Under GOI’s umbrella framework, donors and both local and international non-governmental organizations (NGOs), (Asian Development Bank, Red Cross, K f W , Muslim Aid, UN-HABITAT, and International Organization for Migration (IOM)), are engaged in settlement reconstruction activities. The BRR, through the DHWS-BRR, will provide leadership and oversight to the Government’s reconstruction and rehabilitation program. T o assure harmonization o f various recovery activities conducted in NAD and Nias, the project will strengthen the Directorate o f Housing and Public Facilities (DHWS) under BRR. DHWS-BRR will ensure that the MDTF projects are coordinated with other donor and N G O programs to minimize duplication o f efforts and maximize equality and transparency among beneficiaries. The DHWS-BRR will be staffed by GO1 appointees and consultants specializing in communications/outreach, evaluation, complaints handling, and management information systems (MIS).
The project closely collaborates with UN-HABITAT in the preparation and implementation o f training programs for local artisans and community members in hazard-resistant construction practices, selection o f building materials, and emergency preparedness and mitigation planning. In addition, a Memorandum o f Understanding has been signed between GOI, UN-HABITAT, and the IDA to initiate pi lot operations in four villages participating in KDP and 10 urban wards/communities participating in UPP, beginning in June 2005. This collaboration will test the project’s approach and allow for necessary adjustments and refinements for scaling up or down.
Mitigation and Preparedness for Future Natural Disasters. As the project focuses on reconstructing and rehabilitating settlements and small-scale infrastructure, i t highlights several disaster management- related mechanisms to enhance community resilience and reduce vulnerability to future disasters Improved hazard-resistant building standards, community preparedness planning and mapping, and heightened awareness o f hazard-prone areas are integrated into the community-level planning processes. The international donor community and GO1 elaborated a more comprehensive approach for addressing longer term disaster management issues at the national level in a report entitled, “Developing a Disaster Mitigation Strategy,” January 2005.
Program Purpose. The proposed Settlement Reconstruction and Rehabilitation Program for NAD and Nias i s estimated to cost U S 6 0 0 million, and al l construction i s scheduled for completion by December 2007. O f this amount, the Multi-Donor Trust Fund (MDTFANS) i s expected to contribute US$ l50 mill ion, targeting 400 rural villageddesa and urban wardskelurahan, and will be implemented in two phases. As a major contributor to the implementation o f the GOI’s master plan on human settlements reconstruction, this 3-year program i s geared towards operationalizing a model for settlements rehabilitation and reconstruction for NAD and Nias that i s backed by a mechanism to ensure transparency, accountability, and social inclusion: a mechanism for the population to plan and decide on investments, control funds, implement projects, account for funds expended, and maintain works constructed. Settlement design and construction under the project will incorporate hazard-resistant techniques and building code standards developed by the GO1 (and BRR).
Program Phasing. The program will be implemented in two phases. The Phase 1 Project will target implementation in 200 villages, 100 rural and 100 urban, and approximately 10,000 reconstructed houses and 15,000 repaired houses, through December 3 1,2006. Upon an evaluation o f the Project and meeting specific requirements (triggers), a second phase o f the project will commence in January 1,2006 and continue through September 2007, targeting an additional 200 villages, 100 rural and 100 urban, and approximately 10,000 additional houses reconstructed and 15,000 houses repaired.
Phase 1 Project. The main objective o f the project i s to support GOI’s efforts in restoring the living conditions (housing and basic infrastructure) o f the communities affected by the devastating effects o f the earthquake and tsunami that struck NAD and Nias on December 26,2004 by:
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(a) contributing to GOI’s grant program for settlement rehabilitation and reconstruction, targeting an estimated 200 rura l and urban villages affected by the disaster; and
(b) providing institutional support to the Directorate o f Housing and Public Facilities (DHPF) under the Aceh Reconstruction Agency (BRR), the lead agency in settlement reconstruction for NAD and Nias.
The proposed project includes the following four components:
Component A: Shelter Repair and Reconstruction Grants (US$50 million) This component will finance in-situ rehabilitation and reconstruction o f about 200 affected rural villages (desa) and urban wards (kelurahan) through GOI’s grants program for settlements rehabilitation and reconstruction. Shelter reconstruction and repair grants will be given as two types o f support based on the GOI’s master plan: Rp 10 mi l l ion for partially damaged or Rp 28.8 mi l l ion for fully destroyed houses’. The funding under th is component i s estimated to provide up to approximately 15,000 shelter repair grants and up to 10,000 shelter reconstruction grants for new houses. These estimated numbers o f grants are indicative and can only be finalized once the verification o f damage i s completed at the community level. This grant aims to cover housing reconstruction and repair costs based on a structure o f about 36 sq. meters based o n GO1 estimates. Management o f these grants relies on community-based organizations established through ongoing C D D projects financed by the IDprIIBRD (Kecamatan Development Project-KDP in rural villages and Urban Poverty Project -UPP in urban wards). Under the guidance o f the housing facilitator and the district management consultant (DMC) teams, attention will be given to ensuring that hazard-resistant design standards and sound construction practices are adopted by communities during reconstruction.
In addition to KDP and UPP, which are the main project partners, NGOs and intemational organizations which align with the overall operational framework on housing reconstruction envisaged by GO1 and operating under similar principles o f community participation will be considered for possible inclusion in the project based o n GOI’s request and in consultation with the communities. In this case, the project, communities and these organizations will enter into partnership agreements.
Possible funding for transitional housing and addressing the needs o f intemally displaced people (IDP) wil l be considered o n a case-by-case basis according to the demand from beneficiaries and based on the implementation plan proposed in the framework o f community settlement plans (CSP).
Component B: BZock Grants for Priority Infrastructure (US%20 million) This component finances block grants for urban wards (kelurahan) or rural villages (desa) for the rehabilitation o f small-scale priority infrastructure2 (mainly secondary and tertiary networks) as wel l as other utilities related to effectiveness o f the shelter repairs and reconstruction program, according to the rehabilitation and reconstruction plans formulated by the communities. This component builds upon and complements existing infrastructure grant support provided through the KDP and UPP systems for community-level infrastructure rehabilitation. B lock grants under this component match those provided through UPP and KDP operations using the same CSP to fill minimum basic infrastructure and social service needs. The init ial block grant amount would start f rom Rp. 500 mi l l ion per kelurahan or desa.
’ These unit prices are subject to fluctuations, and would need to be kept under constant review. The unit prices for bo th housing and infrastructure reconstruction and rehabilitation wou ld be adjusted periodically, as appropriate, based o n a review to be undertaken by the Executing Agency in conjunction with the Dinas Pemukiman Provinces, and subject to endorsement by BRR and approval by IDA. ’ There wil l be a simple negative l i s t o f items that cannot be funded including: (a) expenditures intended for mil i tary or paramilitary purposes; (b) c i v i l works for government administration o r religious purposes; (c) activities related to the manufacturing or use o f environmentally harmful products; (d) activities using, producing, storing or transporting hazardous materials and wastes; (e) activities related to logging; (0 activities in environmentally protected areas; and (9) activities related to fisheries that are not in accordance with standards set by the Recipient’s Fishery Service Agency.
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However, given the diverse size o f the communities, this i s not a one-time grant, and needs for additional funding will be considered in the framework o f the agreed CSP. Communities whose housing needs are covered by other donors may also apply for infrastructure block grants, provided they utilize similar community-based planning mechanisms, acceptable to GO1 and IDA.
Component C: Project Implementation Support (US$11.6 million) T o expedite the settlement reconstruction and rehabilitation program at the local and national levels, implementation support will be critical for mobil izing teams, preparing training programs, and hiring consultants. This component will finance immediate and medium-term technical assistance (TA) activities for (a) establishment and implementation o f the shelter support grants and priority infrastructure block grant schemes and financial management systems acceptable to IDA; (b) overall project implementation at the national, district, and village levels, including the hiring and training o f 150 housing facilitators; (c) capacity building at the community level to manage project activities &e., training o f communities and local artisan on construction, disaster mitigation planning, and bookkeeping); and (d) strengthening the capacity o f PMU and PIUs including additional operational costs to purchase office equipment.
Component D: Program Support, Monitoring and Evaluation (US$3.4 million) This component will assist D H W S in monitoring and evaluation o f the overall shelter program to ensure that implementation i s efficient and effectively targeted and to promote accountability, and transparency. Such processes also facilitate good govemance procedures to minimize leakage o f resources.
Key Impact Indicators’. The project targets are: (a) reconstructed or repaired shelters for approximately 25,000 households affected by the earthquake-tsunami o f December 26,2004 in NAD and Nias; (b) restored basic, small-scale infrastructure in 200 affected villages; and (c) a 65% satisfaction level among project beneficiaries and participants as measured by an independent survey.
Project implementation progress in delivering inputs, and achieving project outputs will be measured systematically by the internal project monitoring system, a comprehensive system o f reporting f rom the village level up to the policy malung level, through a Project MIS. Achievement o f target project outcomes and impact wi l l be measured through independent evaluation in sample villages against a project baseline collected at project start-up, two times, once before a mid-term project review in mid- 2006, and at project completion in December, 2007.
Implementation Arrangements. BRR will be the coordinating body for the donors supporting the Govemment’s Program. The Ministry o f Public Works (MPW) will be the executing agency for the shelter program and will oversee project implementation through i t s provincial office (Dinas Permukiman), where the Project Management Unit (PMU) will be established. The PMU will be supported by a team o f provincial management consultants (PMC) who will oversee project performance and manage a l l district project implementation units (PIU) and D M C teams during implementation.
At the district level, under the guidance o f the PMU and MPW, four DMC teams wil l be recruited to support project implementation throughout the 15 districts targeted by the project. Each DMC will cover three to four districts, whose grouping will depend on the proximities and efficiency o f organizing target districts. The PIU in each district will oversee the D M C team working in i t s district, and act as secretariat to the district settlement coordinating committee established by the local government. The DMC team wil l provide technical advisory support to the PIU during implementation.
The performance indicators (a) and (b) were established using the assumptions referred o f the unit rates at the time o f appraisal. Due to unpredictability o f the unit prices, these performance indicators would be interpreted and applied, taking into account any changes as may b e agreed from time to time in the unit prices used.
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At the village level, 150 housing facilitators will be assigned. These facilitators will work in close coordination with existing K D P and UPP-based community facilitators. The housing facilitators will train community volunteers in the damage assessment methodology and sound construction practices, using the building codes developed by BRR as a basis, and will assist in the monitoring o f construction quality. The facilitators will work in teams o f three, comprised o f one senior, more experienced facilitator and two junior facilitators. Each team will cover on average four villages. The housing facilitators will report directly to the D M C and will receive guidance and oversight regarding technical monitoring o f settlement construction.
Special Arrangements to Expedite Project Implementation. Over the first four months, the following steps will be taken in order to expedite operations in the field:
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Training o f KDP and UPP facilitators to act as interim housing facilitators until the 150 housing facilitators mobilize; Direct support t o BRR through “Bridging TA”, funded through a reallocation o f funds from the Second Urban Poverty Project (UPP 2); Recruitment o f the core consultant teams; Launching pi lot operations with UN-HABITAT in four KDP-involved desa and 10 UPP-involved kelurahan in order to test the approach and make necessary adjustments; Establishment o f intensive f ie ld supervision arrangements by the IDA team; and Retroactive financing o f US$5.0 mi l l ion for accelerating the project launch process.
Transparency and Accountability. The project includes several layers to ensure full transparency and accountability in al l activities carried out under the project. T o this end, an Anti-Corruption Act ion Plan was prepared for the project and agreed upon with the GOI.
Gender Equality. To ensure women’s participation in the project, a gender strategy has been developed which will systematically address gender mainstreaming and equality issues.
Action Plan and Effectiveness Conditions. To ensure that project implementation starts as quickly as possible, the following actions have been agreed to be taken.
Grant Effectiveness and Disbursement Conditions:
a draft budget allocation, which satisfies the requirements o f the Project, for the f i rst year o f the Project, including funding for local level implementation, has been prepared by GOI; the head o f P M U ( Project Manager) has been appointed; the terms o f reference for the PMC, including those o f the financial management experts, have been approved by IDA; and a draft circular letter, which satisfies the requirements o f the Project, shall have been prepared by the Director General o f Treasury o f the Ministry o f Finance for disbursement o f sub-grants.
Shelter Support and Infrastructure Block Grant Disbursement Conditions:
a Project Operational Manual, acceptable to the IDA, issued by MPW; Memorandum o f Understanding signed among the project managers o f KDP, UPP, W A S to define responsibilities o f each project, coordination arrangements and scope o f collaboration for implementing training activities; and An agreement has been reached between the PMU and a state-owned commercial bank (SOCB), selected by the MPW, and acceptable to IDA, to provide services in channeling grants to beneficiaries. Financial Management experts o f the project have been recruited.
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Risks and Mitigation Measures:
Project Risks. The project’s success will hinge upon mitigating the following risks: (a) project management risks; (b) technical risks; (c) social and environmental r isks; and (d) security risks. These risks will be addressed through a series o f monitoring and evaluation activities and audits (internal and external, financial, technical and social) embedded in the project design.
Security Risks. The security r isks are higher in rural areas than in inner-city areas. The Kecamatan Development Project has been operating in areas exposed to these risks, and i t s experience indicates that the participatory and inclusive nature o f the project i s such that i t will promote unity and resolution o f community conflicts. The core training o f facilitators and socialization include conflict resolution materials. If adjustments to the guidelines are required to adapt the specific conflict resolution mechanisms, and to develop a strategy to deal with the specific conflict, they will be implemented with the approval o f the PMU and IDA.
Project Management Risks. Project management r isks derive f rom GOI’s lack o f experience in dealing with this magnitude o f settlement reconstruction. There i s also a risk o f less take-ups o f housing grants by the communities as compared to NGOs due to implementation delays. The project allows flexibil i ty to reallocate funds f rom housing to infrastructure to scale up the infrastructure service coverage in case housing needs are met through other programs. T o ensure efficiency in managing the widespread and urgent needs for housing, the project will include the following: (a) creation o f a P M U under MPW to serve as the key entity for project monitoring and oversight; and (b) establishment o f Management o f Information Systems (MIS) in the PMU.
Future Hazards and Technical Risks. The main technical risk o f the project consists o f balancing structural integrity, architectural tradition, and social needs in housing and community infrastructure reconstruction. In order to mitigate this risk, the project will include: (a) training o f local artisans, engineers and contractors; (b) oversight and guidance by housing facilitators and DMC teams; and (c) technical audits by independent engineers. For the community infrastructure implemented through community block grants, disaster mitigation aspects will be integrated in the preparation o f CSPs.
Social and Environmental Risks. Resettlement and land acquisition may be triggered during the reconstruction period. In this case, a social and environmental safeguard framework (SESAF) was developed during appraisal to outline actions to be taken by the government and communities. The project will finance a continuous social impact assessment (CSIA) by external consultants to monitor issues faced by communities throughout project implementation. Within the project, complaint handling units (CHUs) wi l l be established at various levels o f implementation to resolve issues that arise in the field that cannot be solved by the community. Also, a communication strategy will be finalized in the first six months to ensure transparency in decision-making and extend GO1 and project outreach towards the affected population.
In addition, target communities, empowered with the knowledge o f different donor programs working in nearby areas, may opt to work with other donors to reconstruct their homes. T o address this issue, the project will continuously assess people’s housing design preferences and overall project performance. I t i s also based on a strong C D D mechanism to ensure community involvement, ownership and participation in the in-situ reconstruction and rehabilitation process.
The use o f timber as a construction material may trigger significant indirect and cumulative project impacts in the longer term. These impacts need to be addressed within the broader context o f Aceh reconstruction, for which a specific environmental study will be carried out during the early stages o f project implementation. T h e output o f the study will be a strategy for making legally sourced timber
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available to project beneficiaries, integrated with related support to beneficiaries in applying green construction standards and ensuring adequate environmental monitoring. T h e project will provide the necessary resources to ensure that expertise i s available to support implementation o f the timber availability and environmental impact assessment study and required fol low up actions.
TECHNICAL REPORT
PARTI-BACKGROUND
December 26,2004 Earthquake and Tsunami. A devastating earthquake measuring 9.0 on the Richter scale occurred on the moming o f December 26,2004 o f f the coast o f the island o f Sumatra, Indonesia, triggering a massive tsunami that traveled across the Indian Ocean, reaching the coast o f East Afi ica. Indonesia was arguably the worst hit by the two disasters - in the provinces o f Aceh and Nor th Sumatra, with in i t ia l estimates o f more than 230,000 people died and 700,000 remain displaced. In addition, existing infrastructure systems were wiped out, and approximately 280,000 homes were either partially damaged or completely destroyed. A study by the donors (July 2005) indicates downward estimates: about 18 1,000 people deceased or missing and about 100,000 housing units are needed. According to the in i t ia l damage and needs assessment conducted jo int ly by the Government o f Indonesia (GOI) and the donor community in January 2005, the preliminary estimate o f damage and losses sustained equals Rp. 41.4 t r i l l ion (US$4.45 billion), o f which US$1.4 b i l l ion was attributed to the housing sector. In the context o f these disasters, the rehabilitation and reconstruction o f affected settlements comprise an essential component o f the Nanggroe Aceh Darussalam (NAD) and Nias post-tsunami and earthquake recovery program.
Government’s Master Plan. The massive scale o f reconstruction required to restore communities and economic activities i s unprecedented. In response, GO1 has formulated a master plan for the Rehabilitation and Reconstruction o f NAD and Nias (“Rencana Induk Rehabilitasi dun Rekonstruksi di NAD dun Nias ”), which guides the coordination and implementation o f all recovery programs in Aceh. As one o f this master plan’s components, the Comprehensive Human Settlements Rehabilitation and Reconstruction Strategy prepared by GOI, provides an overall approach for repairing and reconstructing housing and settlements for the affected population. This policy framework serves as a basis for a l l housing programs undertaken by various donors in order to ensure consistency and transparency. The master plan presents the following features:
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Emphasis on the importance o f community participation in reconstruction and rehabilitation interventions, including construction and tenure decisions, as an enabling factor o f the strategy; and Promotion o f comprehensive human settlements rehabilitation and reconstruction processes, addressing not only housing, but also tenure and socio-economic issues through active community participation and partnership with the local govemments.
The master plan also states that the village level i s the smallest basic unit for intervention, and if a donor forms a settlement reconstruction project within a village, it should cater to al l settlement needs within the geographic area in order to avoid gaps and inequality among beneficiaries. The proposed project supports and builds upon this master plan. However, the design o f the project i s flexible enough to adapt to any changes made to this master plan, including the categories o f damage and the housing grant amounts based o n the level o f damage.
Mitigation and Preparedness for Future Natural Disasters. As indicated above, the project focuses on reconstructing and rehabilitating settlements and small-scale infkastructure following the tsunami- earthquake disaster. It i s important to note that this project highlights several disaster management- related mechanisms to enhance communities’ resilience and reduce vulnerability to future disaster
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impacts. Improved hazard-resistant building standards, community preparedness planning and mapping, and heightened awareness o f hazard-prone areas are integrated into the community-level planning processes. The international donor community and GO1 elaborated a more comprehensive approach for addressing longer term disaster management issues at the national level in a report entitled, “Developing a Disaster Mit igat ion Strategy,” January 2005.
Program Purpose. The entire GO1 settlement reconstruction program covering all affected areas i s estimated to cost U S 6 0 0 mill ion, and a l l construction i s scheduled for completion by December 2007. Of this amount, the Multi-Donor Trust Fund (MDTFANS) i s expected to contribute US$150 mi l l ion in two parts, init ially US$85 mi l l ion for phase 1, and upon meeting agreed upon key performance levels, an additional US$67.5 mi l l ion for phase 2. As a major contributor to the implementation o f GOI’s master plan on human settlements reconstruction, the program i s geared towards operationalizing a model for settlements rehabilitation and reconstruction for NAD and Nias that i s backed by a mechanism to ensure transparency, accountability, and social inclusion. T h e model will include a mechanism for the population to plan and decide on investments, control funds, implement projects, account for funds expended, and maintain works constructed. W h i l e the program’s overall target i s to reconstruct 400 rural villages/desa and urban wardskelurahan (see section I1 A for details), this i s being implemented in two phases, with phase 1 covering 200 villages, and phase 2 covering another 200 villages. Settlement design and construction will incorporate hazard-resistant techniques and building code standards developed by GO1 (and BRR).
Lessons Learned. Recent housing reconstruction projects by IDA indicate that rebuilding homes following a disaster, helps facilitate the psychological healing process. Furthermore, housing i s intrinsically l inked to livelihood restoration, especially when people are given the opportunity to generate much-needed sources of income and learn new ski l ls through construction training programs. Projects that have successfully achieved their objectives contained the following elements: (a) simple project design; (b) maximization o f existing institutions and mechanisms; (c) emphasis on active community participation; (d) minimizing macro-conditionality; and (e) rigorous independent auditing and evolving monitoring-and-evaluation systems.
Role o f CDD. Building on these salient lessons and GOI’s master plan, i t was decided to apply the existing community-driven development (CDD) mechanisms established through the Kecamatan Development Program (KDP) and the Urban Poverty Program (UPP), both financed by IDNIBRD. The proposed project defines the KDP and UPP as main partners in ensuring the comprehensive approach to the preparation and implementation o f Community Settlement Plans (details o f h o w these projects will collaborate are described in Annex D). However, the partnership i s not limited to the above two projects, but i s also open to other NGOs and international organizations aligned with the general implementation framework.
In addition, the project will closely coordinate with the recently approved Reconstruction o f Aceh Land Administration System Project (RALAS) to phase in the areas o f interventions in order to ensure that the community-based land adjudication process for title issuance and housing reconstruction activities will not conflict with one another or cause delays in implementation. After participating villages are organized, community self surveys for damage assessment conducted, and l is ts o f eligible households for rehabilitation or reconstruction grants are finalized -- the survey results, mapping and l i s t s will be submitted to the local BPN-RALAS project facilitators for verification and adjudication o f land claims. Those households with clear land tenure reached by community-consensus will be allowed to begin reconstructiodrehabilitation first, while those without clear land tenure status within the community (tenants, squatters, IDPs from other villages) wiil fo l low the results o f B P N W A S f ie ld verification o f land tenure clearance before beginning construction activities.
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Relationship with Other Donor Programs. Under the Government’s umbrella framework, several donors and both local and international non-governmental organizations (NGOS)~, are engaged in settlement reconstruction activities,
T o assure harmonization of these various recovery activities conducted in NAD and Nias, the project will provide assistance to strengthen the Directorate o f Housing and Public Facilities (DHPF) under the Badan Rehabilitasi dan Reconstruksi (BRR), the Special Agency for the Reconstruction o f NAD and Nias established by a presidential decree, and the Ministry o f Public Works (MPW). T h e BRR, through the DHPF-BRR will provide leadership and oversight to the Government’s reconstruction and rehabilitation program. This DHPF-BRR will ensure the MDTF projects are coordinated with other donor and NGO programs to minimize duplication of efforts and maximize equality and transparency among beneficiaries. The DHPF-BRR wil l be staffed by GO1 appointees and consultants specializing in communications / outreach, evaluation, complaints handling, and management information systems (MIS).
The project closely collaborates with UN-HABITAT in the preparation and implementation o f training programs. In addition, a Memorandum o f Understanding has been signed by GOI, UN-HABITAT and IDA to cany out p i lo t operations for four villages participating in KDP and 10 urban wards/communities participating in UPP, beginning in June 2005. These pilots are testing the project’s approach to make refinements for scaling up. T o date, 35 village KERAPs (Komite Rehabilitasi Permukiman or Community Trustee Committee for Reconstruction and Rehabilitation) have been organized and established by UPP; in these areas, community self-survey damage assessments have been completed or are underway. Training modules in disaster-resistant community construction methods, and alternative, quality building materials have been completed. Init ial training i s underway for the f i rst batch o f UPP facilitators, and will be followed shortly by the first batch o f K D P facilitators.
PART I1 - PHASE 1 PROJECT DESCRIPTION
A. Phase 1 Project Development Objectives
The main objective of the project i s to support the efforts o f the Government o f Indonesia (GOI) in restoring the living conditions (housing and basic infrastructure) o f the communities affected by the December 26,2004 tsunami in NAD and Nias through:
(a) contributions to GOI’s grant program for settlement rehabilitation and reconstruction, targeting an
(b) provision o f institutional support to the Directorate o f Housing and Public Facilities(DHPF) under the estimated 200 villages (rural and urban) affected by the disaster; and
Aceh Reconstruction Agency (BRR-Badan Rekonstruksi dan Rehabilitasi), the lead agency in settlement reconstruction for NAD and Nias.
The proposed project will employ a community-driven approach for program planning, management, implementation, and monitoring in order to target appropriate beneficiaries, maintain a transparent f l ow o f funds, and create community ownership o f the program. T o enable the reconstruction process to begin as quickly and efficiently as possible, the project will include technical assistance packages to strengthen the DHPF under the BRR to oversee and coordinate the implementation o f the GOI’s settlement reconstruction and rehabilitation program. The Phase 1 project will be implemented f rom October 2005 (initially through retroactive financing o f the pi lot project) through December 2006.
Several organizations, including the Asian Development Bank (ADB), Indonesia Red Cross Society, CARE, Save the Children, IOM, KfW, UN-HABITAT, UNHCR, UNICEF, and World Vision, plan to be engaged in housing reconstruction work.
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B. Project Components
This project comprises four main components: (a) grants for in-situ shelter reconstruction and repair; (b) block grants for priority, small-scale community infrastructure; (c) implementation support and capacity building; and (d) program support, monitoring, and evaluation o f the project. Individual project components are outlined below. Details are provided in Annex B.
Component A: Shelter Repair and Reconstruction Grants (US$50 million) Field visi ts t o affected rural and urban communities indicate that settlement reconstruction i s a major priority for the affected population in the short to medium term. People also expressed they would l ike to: (a) control the construction process; (b) rebuild their homes themselves as much as possible; (c) remain o n their own land; and (d) receive the full amount o f support for which they are eligible.
T w o types o f shelter reconstruction and repair grants will be available to support GOI’s master plan: Rp 10 mi l l ion for partially damaged’ or Rp 28.8 mi l l ion for fully destroyed6 houses. As mentioned, these categories and amounts remain flexible to respond to changes in the master plan, as designated by GOI.’ This support grant aims to cover housing reconstruction and repair costs based on a living space o f about 36 sq. meters. T o address this need, the project will facilitate in-situ settlement reconstruction o f 200 affected rural and urban villages (desa and kelurahan). The funding under this component i s estimated to provide up to approximately 10,000 shelter reconstruction grants for new housing units and up to 15,000 shelter repair grants. These estimated numbers o f grants are indicative numbers and can only be finalized once the verification o f damage at the community level i s complete.
The process will be managed through a community-based approach, through which beneficiaries are required to form groups (KP: Kelompok Permukian-sub-village/sub-kelurahan community groups on settlements). In order to receive the shelter support grant, the following basic steps will be followed:
(a) Mobil ization o f facilitators and organizing o f the community; (b) Community mapping and technical damage assessment; (c) Establishment o f eligible beneficiary l is ts and implementation plans; (d) Approval o f allocation o f funds to communities by PIU; and (e) Disbursement o f grants in tranches based upon construction activities.
Housing facilitators will be recruited to work with the KDP and UPP facilitators in order to assist the communities in these steps. Based on the community-based mapping and damage assessment exercises, a master l i s t o f eligible beneficiaries will be established. The KPs will then be assisted by the facilitator team in opening group bank accounts to receive the shelter grant support (detailed disbursement arrangements are described separately in Annex J). With support f rom the housing facilitators, KPs will also prepare implementation plans, which will spell out settlement construction and implementation phases for each member household participating in the KP. The master l ist, account information, and implementation plans will be used as a means to verify construction phases for grant disbursement.
Grants will be disbursed to the K P group bank accounts in three tranches o f 40%, 40%, and 20%. KPs wil l then give funds to eligible household group members. Tranches will be replenished according to the KPs’ progress in the implementation o f their agreed implementation plans; release o f subsequent tranches will occur only after validation and sign-off o f disbursement request forms by the housing facilitator who has certified satisfactory completion o f the tasks. This request form wil l be co-signed by the KPs, with KDP/UPP facilitators also co-signing as the witness. U p o n receipt o f the signed forms by the Field
’ Structure is intact.
’ For example, the grant amount may increase or decrease, as m a y the number o f damage categories. Structure i s fully destroyed.
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Operational Manager (Penanggung jawab Operasional Kegiatan-PJOK)8, the disbursement requests will be submitted to the assigned bank for disbursement. NGOs and intemational organizations which align with the overall operational framework on housing reconstruction envisaged by GO1 and operating under similar principles o f community participation will be considered for possible inclusion in the project based o n GOI’s request and in consultation with the communities. In this case, the project, communities and these organizations will enter into partnership agreements.
Intemally-Displaced People (IDP), namely those who currently live in tents, barracks, or with host families or relatives, may decide to resettle in the future and claim their shelter support entitlement. However the scale o f such needs has not been defined to date. To address this potential issue, this component includes a window o f funds for shelter grants (approximately 10% o f funds allocated under this component). Given the urgency to prepare this project, this window will be appraised at an appropriate time during implementation once the scale and scope o f existing needs are clearly defined. In a similar vein, the need for transitional housing may be considered for inclusion under this component based o n requests f rom communities and the corresponding needs outlined in their CSPs.
Component B: Block Gruntsfor Priority Infrastructure (US%20 million) In order for communities to be habitable and sustainable, infrastructure must also be restored and repaired in parallel with the housing stock. This component finances block grants for kelurahan or desa for the rehabilitation o f small-scale priority infrastructureg (mainly secondary and tertiary networks) according to the community rehabilitation and reconstruction plans. This component builds upon and complements existing infrastructure grant support provided through the existing KDP and UPP systems for community- level infrastructure rehabilitation. Block grants under this component match with block grants provided through UPP and K D P operations in the same framework o f CSPs’O. to full minimum basic infrastructure and social service needs.
In parallel with the preparatory activities (i-e., technical damage assessment, establishment o f the beneficiary l i s t and the implementation plans, opening o f KP group bank accounts) required for shelter grant support, the communities will also work towards preparing a CSP. Housing facilitators will work closely with KPs and KDP/UPP facilitators to help devise the CSPs. This block grant o f Rp. 500 mi l l ion will not be sufficient to respond to al l the infrastructure needs o f the communities; thus, the CSPs will serve not only as the basis for determining the priorities for the use o f b lock grants, but also as a basis for the communities to source matching funds f rom other donors / financiers. The KDP/UPP facilitators and housing facilitators will support the communities in contacting and negotiating with potential donors and financiers.
* PJOK is a sub district staff member appointed by the Distr ict chief authorized to sign o f f on the disbursement/payment requests.
There will b e a simple negative l i s t o f items that cannot be funded including: (a) expenditures intended for mil i tary or paramilitary purpose; (b) c i v i l works for government administration or religious purposes; (c) activities related to the manufacturing or use o f environmentally harmful products; (d) activities using, producing, storing or transporting hazardous materials and wastes; (e) activities related to logging; (0 activities in protected areas; and (g) activities related to fisheries that are not in accordance with standards set by the Recipient’s Fishery Service Agency. lo A community settlement p lan (CSP) includes information regarding tenure issues, site plans and layout, households eligible for grant assistance, maps, identif ication o f land plots, damaged and destroyed houses, infrastructure, and project implementation arrangements. The CSP wil l also include revised community spatial planning including hazard risk mitigation strategies (e.g., securing evacuation paths, required set-backs). Each CSP wil l be reviewed and verif ied by facilitators and DMCs, and approved by P I U o n behalf o f local government authorities (District Shelter Coordinating Committees (PEMDA) and BRR). The CSP i s a generic term, and if a similar format exists (e.g., K D P applies a “Village Development Plan”), necessary adaptations will b e made to suit the objective; i t i s not necessary to create a new/different format.
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The init ial b lock grant amount starts from Rp. 500 mi l l ion per kelurahan or desa, but given the diverse size o f the communities, this i s not a one-time grant, and additional funding will be considered in the framework o f the agreed CSP. Communities whose housing needs are covered by other donors may also apply for infrastructure block grants, provided they utilize community-based planning mechanisms, acceptable to GO1 and IDA. Application for supplemental infrastructure funds will fo l low the same process as the original application: the facilitator team wil l s i g n o f f on the revised CSP and submit it to the D M C for approval and disbursement.
In addition to the targeted 200 desa and kelurahan, affected communities located within the 15 districts covered by the project, whose housing needs are covered by other donors, may also apply for infrastructure block grants, provided they utilize community-based planning mechanisms, acceptable to GO1 and IDA.
Component C: Project Implementation Support (US$11.6 million) T o expedite the settlement reconstruction and rehabilitation program at the local and provincial levels, implementation support will be critical for mobil izing teams, preparing training programs, and hiring consultants. This implementation support component will finance a series o f immediate and medium- term technical assistance (TA) activities for: (a) establishment and implementation o f the shelter support grants and priority infrastructure block grant schemes and financial management systems acceptable to IDA; (b) overall project implementation at the provincial, district, and village levels; and (c) capacity building at the community level to maintain and manage project activities (settlement and infrastructure construction, bookkeeping).
Local level implementation will depend upon the hiring and training o f 150 housing facilitators. Reporting directly to the district-level management consultant (DMC) team, these housing facilitators will: (a) help manage oversight o f the project at the desa and kelurahan levels in coordination with the KDP and UPP community facilitators; (b) conduct the technical damage assessment and monitor housing construction phases; (c) coordinate reconstruction progress with land facilitators appointed by the MDTF Land Management project; (d) coordinate construction ski l ls (masonry and carpentry) training programs with other donors and the community; and (e) ensure that funds are being dispersed to beneficiaries. The facilitators will work in teams o f three, including at least one senior experienced facilitator, with two junior facilitators. Each team will cover on average four villages. Before working in affected communities, a l l housing facilitators will undertake a comprehensive training program that teaches them how to deal with issues such as socialization o f community safety planning and hazard no-build zones, housing designs that incorporate earthquake, wind, and flood resistant measures, and identifying quality and/or alternative building materials (i.e., bataco cement bricks). For additional information o n the role and duties o f housing facilitators, see Annex C.
Component D: Program Support, Monitoring and Evaluation (US$3.4 million) This component covers the technical assistance consultants to the DHPF o f BRR, providing support to the Settlement Reconstruction and Rehabilitation Strategy Program for Aceh and Nias, as wel l as the cost of the establishment and execution o f public communications, complaint handling, and an internal and external monitoring and evaluation framework to maximize effectiveness, accountability, and transparency during implementation. This component also include establishment o f a Management Information System (MIS) under the PMC for the project. Such processes also facilitate good governance procedures to minimize leakages o f resources.
C. Key Performance Indicators of Phase 1 and Triggers for Phase 2
The M D T F A N S Settlement Reconstruction and Rehabilitation Program i s designed in two phases in response to emerging uncertainties and insufficient data and information surrounding settlement and shelter damage assessments in NAD and Nias. It i s felt that phasing will a l low the project to test and
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verify approaches and methodologies, while more complete data and information emerge. However, due to the nature o f the settlement reconstruction and rehabilitation effort in NAD and Nias, where many victims have been living in refugee tents and temporary barracks for over seven months, BRR has decided that al l reconstruction and rehabilitation activities must be completed by September 2007. Therefore, to implement the program in two phases requires that the phases overlap. Although implementation progress and achievements in phase 1 will determine implementation o f phase 2, to assess indication o f progress in phase 1, the pilot project implementation in 15 kelurahans in and around Banda Aceh initiated in April 2005 with financing from GOI, wi l l be assessed. The triggers will be mainly based on the benchmark o f processes rather than full fledge outputs and outcomes.
Requirements to proceed from phase 1 to phase 2 (triggers) have been designed to measure processes related to indicators which confirm that the approach and methodology are appropriate.
Critical Issues :
coordination o f M D T F A N S projects 1. Effective, efficient integration and
2. Up-to-date assessment o f reconstructiodrehabilitation needs in Aceh
3, Transparency accountability in the implementation o f the project
4. Project Progress in phase 1
Triggers: M O U among KDP, UPP, Settlement, R A L A S projects executing agencies signed, issued (for 200 villages) KDP, UPP, Settlements, RALAS coordination units established and operating Banda Aceh and Jakarta (for 200 villages) Settlement coordination committee established and functioning in Banda Aceh (for 35 villages) Updated settlement, shelter damage assessment in NAD, Nias by BRR, incorporating existing housing needs and commitments f rom various donors, and identify any existing gaps CBOs (TKPs and KERAPs) established in public, transparent manner with leadership accountable to the community (in 15 pi lot areas) Complaints handling unit established, operational M I S system established operational, producing periodic progress reports in pi lot areas and for the remaining 200 villages available. Progress achieved in 15 pi lot villages in NAD: villages completed community mapping villages completed CSP CBO’s established, notarized, functioning KPs formed w/ members l i s t and bank acct. KPs have received f i r s t tranche o f shelter grant
In order to proceed to phase 2, a l l o f the above requirements must be achieved. The triggers have been designed to minimize possible delays in initiating Phase 2. GO1 will evaluate phase 1 progress achieved in four to six months after project effectiveness, submitting a report to the Wor ld Bank and MDTFAN Steering Committee. A joint supervision mission will be conducted by the Wor ld Bank, donor members o f the M D T F A N S Steering Committee, and GO1 representatives to measure and verify progress reported achieved in phase 1. Based on the Bank’s evaluation and recommendation, the M D T F A N S Steering Committee will issue a N o Objection Letter to proceed with phase 2 o f the project.
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PART 111 - PROJECT COSTS
MDTF Total cost Financing
PROJECT COMPONENT US$ Million
The breakdown o f costs by component i s presented below. The total project cost i s approximately US$85 mill ion. GO1 i s expected to provide US$1.2 mi l l ion for overhead costs, including government staff salaries and administration. Communities will contribute labor and mutual assistance.
GO1
. Block Grant for Housing 50.31 50.01 0.3
I Rehab Houses I 18.d 18.01 I New Houses
I ..
OTAL PROJECT COST 86.21 84 1.2
32.d 32.01
PART I V - IMPLEMENTATION ARRANGEMENTS
A. Details o f Responsibility, Decision-making, and Project Management
National Level. T o support day-to-day implementation o f GOI’s, the DHPF has recently been established within the BRR. This Directorate will communicate with the Ministry o f Public Works (MPW) to coordinate reconstruction activities among central government stakeholders and donors. The DHPF will be located in Banda Aceh, and the Head o f the DHPF (Program Manager) will be appointed by BRR. The Program Manager wi l l be responsible for the oversight o f settlement reconstruction implementation across NAD and Nias and will report directly to BRR and the MPW.
At the central level, the existing national steering committee for BRR will serve as the policy-making and advisory body on land and housing issues for GOI’s National Settlements Strategy Program. This committee will provide inputs to the DHPF-BRR during implementation.
Provincial Level. The Ministry o f Public Works (MPW), as the project-executing agency, will establish a Project Management Unit (PMU) lead by a project manager (PIMPRO) located in Aceh under i t s provincial office (Dinas Permukiman), and will report regularly to BRR and MPW. This unit will manage daily implementation o f the proposed project. The PMU will be supported by a team o f provincial management consultants (PMC) who will oversee project performance and manage a l l district project implementation uni ts ( P N ) and district management consultant (DMC).
Under the guidance o f the PMU, four DMC teams will be recruited to support project implementation across the 15 districts targeted by the project. The PIU at the districtllocal government level will act as
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secretariat to the Distr ict Settlement Coordinating Committee established by the local government. As described below, the D M C teams will provide technical advisory support to the PIU during implementation.
Local Government Level. The close involvement o f local government authorities in this project i s paramount to ensure efficient implementation. District Settlement Coordinating Committees, in each local district govemment, will be responsible for reviewing the implementation progress at the local government level and advising the relevant sectors on the necessary technical measures to resolve issues that arise in the field. The members will comprise the local government level equivalent o f the participating sectors of the MPW, the settlement agency (Dinas Pemukiman), National Land Agency (BPN), and selected representatives of c iv i l society organizations relevant to the Government’s housing program. If similar consultation bodies already exist at the district level through the ongoing K D P and UPP, the project will utilize them to avoid duplication and delay. Issues that cannot be resolved at the local government level and that require policy and regulatory interventions at a higher level will be reported to BRR.
One hundred and fifty housing facilitators will be assigned at the village level. These facilitators will work under close guidance of the K D P and UPP-based community facilitators. As mentioned above under Component C, these facilitators will train community volunteers in the damage assessment methodology and good construction practices. The organizational structure for implementation i s reflected in Annex E.
A Memorandum o f Understanding will be signed between the project and the project managers o f the ongoing KDP, UPP, and R A L A S to define responsibilities o f each project, coordination arrangements, and scope o f training activities (on community-driven adjudication processing, damage assessment and construction skills), particularly the coordination among different facilitators (KDP facilitators, UPP facilitators, land facilitators f rom R A L A S and housing facilitators f rom the project) at the village level.
B. Due Diligence Measures
Construction Quality Control. During implementation, the housing facilitator teams, under the oversight o f the DMC civ i l engineers and site planning experts, will supervise construction quality and design, Requests for subsequent tranches wil l be signed o f f upon inspection o f construction works based o n the designs and implementation plans reviewed and approved prior to the release o f the f i rst tranche. In this regard, based on the building codes prepared by GO1 (BRR), earthquake, tidal flooding, and high- wind resistant housing designs and construction methods will be prepared, approved, and monitored by the PMU and DMCs. Local govemment authorities will also inspect homes to ensure that each structure i s wel l built. Upon inspection by local officials, each household will receive a certificate o f occupancy.
Training and Capacity Building. The estimated capacity for self-built houses in the pre-tsunami period ranges between 17,000 and 28,500 per year throughout Aceh. Now, with more than 100,000 houses planned to be reconstructed, the demand for construction workers will be high. Even though most communities have expressed the desire to self-rebuildrepair their homes in-situ, they wil l s t i l l require skilled personnel such as construction foremen, masons, carpenters, and to a lesser extent, plumbers and electricians to procure quality building materials. K O and UN-HABITAT are jo in t ly preparing a training program for Aceh artisans (masons, carpenters) in hazard-resistant construction methods and altemative construction materials. Project staff will work closely with these organizations to carry out training activities in the project areas; the provisions for training have been included under Component C.
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PART V - PROCUREMENT ARRANGEMENTS
Procurement Implementation Arrangements. The selection o f a l l consultant services i s the responsibility o f the Directorate General (DG) o f Human Settlements in the Ministry o f Public Works. The procurement o f works for housing construction and tertiary infrastructure i s the responsibility o f the K P or a group o f several K P s working together. For procurement activities involving the community, there will be a “contract” with the community for the delivery o f certain outputs/products based on the agreed lump sum amount and the technical specification, with a control mechanism. The control mechanism from within the community for procurement processes (as currently applied under UPP and KDP) will be included in the Project Operational Manual.
Procurement Arrangements. Procurement for the proposed project will be carried out in accordance with the Wor ld Bank’s “Guidelines: Procurement under BRD Loans and IDA Credits” dated M a y 2004; “Guidelines: Selection and Employment o f Consultants by IDA Borrowers” dated M a y 2004; and, the provisions stipulated in the Multi-Donor Trust Fund (MDTF) and the Chi ld Trust Fund Agreements to which this project applies. The various items under different expenditure categories are described below. For each contract financed by MDTF and the Chi ld TF, the different procurement methods or consultant selection methods, estimated costs, prior review requirements, and timeframe, are al l defined in the Procurement Plan. The Procurement Plan will be updated annually, or as required, to reflect the actual project implementation needs and improvements in institutional capacity. Details o f procurement arrangements are outlined in Annex I.
Special Procurement Provisions. Due to the project’s emergency status, consultants must be selected quickly. Therefore, the Recipient wi l l expedite and streamline i t s evaluation process, as detailed in the Project Operations Manual.
Procurement o f Works. Works procured under this project would include rehabilitation and reconstruction works o f 25,000 houses and tertiary infrastructure. Community groups will receive community grants in the amount o f Rp 28.8 mi l l ion per house (USS3,OOO equivalent) to be rebuilt, and Rp 10 mi l l ion per house to be renovated. As part o f the CSPs, there will be sub-project agreements between the community groups and GO1 through the PJOK. The standard form for sub-project agreements will be found in the Project Operational Manual and will include information on: (a) the total amount o f community grants; and (b) the implementation schedule and the number o f houses to be delivered by the particular K P by the end o f the contract period. Works may be conducted through contributions f rom communities, which may be in the form o f labor and materials. In this case, procedures will be in accordance with paragraph 3.17 o f the Procurement Guidelines on “Community Participation in Procurement”. For contribution o f labor, communities may choose to include full or partial labor costs in the proposals and/or pay salaries for work done on the project.
Selection o f Consultants. The project will require consultant services for the following:
(a) a team o f local “bridging consultants” for project implementation start up; (b) an Advisory team o f individual consultants, to BRR; (c) a Provincial Management Consultant, to manage District Management Consultants (DMC); (d) four D M C teams, each covering three to four district governments; (e) monitoring and evaluation consultants, hired intermittently throughout the project; and (0 a team o f social scientists to carry out a continuous social impact assessment (CSIA) during
implementation.
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Assessment o f the Agency’s Capacity to Implement Procurement. The executing agency for the project i s the DG Human Settlements o f the Ministry o f Public Works. This agency wil l be responsible for a l l consultant procurement. The executing agency i s familiar with IDA-financed projects, and therefore, it has the capacity to carry out procurement following Wor ld Bank ProcurementKonsultant Guidelines. However, the reputation o f the agency, coupled with the systemic environment for corruption throughout the country, as wel l as the large-scale, rapid procurement involved in the Aceh operation, have put the procurement risk at high. Mitigation measures are described in Annex I.
Procurement Plan. The Grant Recipient, at appraisal, developed a Procurement Plan for project implementation that provides the basis for the procurement methods. T h i s plan was agreed upon between the Grant Recipient and the Project Team during appraisal, and will be available at BRR, in the projects database and on IDA’S external website. The Procurement Plan will be updated annually, or as required, in agreement with the IDA task team to reflect the actual project implementation needs and improvements in institutional capacity.
GO1 has requested a team o f “bridging consultants”, to assist with the overall preparation o f the project, including preparing the design o f the construction works. IDA will fund these contracts through reallocated funds from UPP 2, at the request o f GOI. Subject to satisfactory performance, GO1 may extend their services during implementation. Based o n GOI’s request, retroactive financing o f US$5 mi l l ion i s also included to accelerate the init ial project launch process.
Frequency of Procurement Supervision. In addition to IDA’S prior review supervision, the capacity assessment o f the Implementing Agency recommends that supervision be conducted monthly to carry out post reviews o f procurement actions in the field.
PART VI - FINANCIAL MANAGEMENT AND DISBURSEMENT ARRANGEMENTS
Financial Management and Disbursement Arrangements. Project implementation relies substantially on community participation and activities, based o n models that have been widely applied in a number o f other projects financed by IDA. The CDD model brings both r isks and benefits - r i sks f rom poor capacity and implementation points that are widespread in the region, and safeguards arising f rom community participation. The financial management assessment has taken these factors into account, and recognizes existing constraints o f poor infrastructure and capacity in Aceh, including the inadequacy o f MPW staff in Aceh. Although MPW has had prior experience in managing IDA financed projects, it i s anticipated that lack o f clarity concerning roles and coordination within the implementing agencies and a l o w financial management capacity at the local level will impose special challenges. Based o n these factors, financial management r isks inherent in the project entity are rated high. Measures to mitigate these r isks have been agreed, including issuing a detailed Project Operational Manual.
Internal Controls and Risk Analysis. The major project r isks relate to grant implementation at the community group level, particularly whether beneficiaries use the grant funds for the intended purposes, as wel l as management o f building materials and financial administration. In addition to the anti- corruption plan, the project includes several mechanisms to mitigate these risks:
0
0
0
Channeling the project funds directly to the group [KP] beneficiaries. The group will manage and execute the project. Fund flows will be linked to progress achieved on the ground; Providing technical support to the national and local management teams. The consultants will assist P M U and PJOK on project administration and implementation; Independent reporting by facilitators, who will supervise, monitor and flag developments during project implementation; and,
.
17
0 Adapting proven management tools and systems used successfully under other C D D projects financed by the Bank Group.
Category Amount (in U S $ Million)
1, Shelter Support Grants (a) in p i l o t areas 2.5 (b) otherwise than p i lo t 47.5
Besides the above risks, there are some risks related to delay o f issuance o f relevant documents, and hence delays in project implementation. T h i s r i sk will be mitigated by requiring an agreed draft DPA budget as a condition for grant effectiveness. For community grant disbursement, the DG Treasury Circular letter for funds disbursement must be drafted and agreed upon, and the Project Operational Manual issued by MPW must be acceptable to IDA.
O h o f Expenditures to be Financed
100 100
Supervision Plan. Project financial management wi l l be supervised o n a risk-based approach at least twice a year. The supervision wi l l review the project’s financial management system, including but not l imi ted to sub-grant expenditures, accounting, reporting and internal controls. Financial management supervision will be conducted by financial management specialists and IDA consultants.
2. Infrastructure B lock Grants 3. Consulting Services, Goods and Incremental Operating Costs for
20.0 100
’ Implementation support 11.6 100
program supports Total Grant
PART VI1 - SAFEGUARD POLICIES
3.4 100 85.0
Category Explanation. GOI’s environmental review procedures are broadly consistent with IDA’S and form the framework for environmental screening and mitigation. The project i s equivalent to IDA “Category B”, recognizing that a community-based approach i s being applied and that most environmental impacts are l ikely to be localized, short term and reversible. For impacts acknowledged to be indirect, complex and cumulative, additional environmental analysis will be carried out during project implementation (see paragraph below for further justification o f this approach). Mitigation o f such impacts will involve a coordinated approach with al l key parties involved in Aceh reconstruction.
T o ensure full compliance with IDA’S environmental and social safeguard requirements, and based on the best-practice models in similar earthquake recovery operations, a Social and Environmental Screening and Assessment Framework (SESAF) was prepared based on the experience o f the K D P and UPP (see Annex G).
Social Aspects. The social impact i s expected to be positive as the project will assist in meeting the priority and basic needs o f the affected population, housing. Project design building on the successhl CDD models (KDP and UPP) will facilitate rebuilding a sense o f community ownership and social cohesion.
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As stipulated in GOI’s master plan, the project adheres to the general principle o f minimizing involuntary resettlement. The need for resettlement may arise for (a) residents residing on land unsuitable for reconstruction; (b) former tenants and squatters; and (c) internally displaced people (IDPs) who do not wish to return to original areas. In the event involuntary resettlement does occur, a Land Acquisition and Resettlement Pol icy Framework has been developed, as part o f the SESAF in accordance with OP 4.12, to ensure application o f the appropriate safeguard policies. The project will maximize the community-based approach developed through ongoing KDP and UPP. The highly participatory nature o f the project, including community-based spatial and reconstruction planning, wi l l ensure that communities are able to identify whether any proposed investments will have a negative impact on social safeguards, and if applicable, assign appropriate mitigation measures.
T o ensure women’s participation in the community development process, a gender strategy has been developed under this project which will systematically address gender mainstreaming and equality issues. This strategy includes systematic recruitment o f local female facilitators, targeting 20% o f all facilitators, 20% women consultants, 30% women community cadreholunteers, encouragement o f women to participate as community trustees, and special arrangements for socialization and focus group discussions and training activities targeted specifically to women’s groups to discuss shelter reconstruction and rehabilitation, as w e l l as priority community infrastructure needs.
Environmental Aspects. The overall environmental impact o f the proposed project i s expected to be positive, as it supports the restoration o f housing and access to basic services in areas heavily damaged by the tsunami and earthquake disaster. Direct negative environmental impacts are associated with siting, design and construction works, such as disposal o f debris, use o f construction materials, design o f water and sanitation measures, and worker safety. Indirect and widespread negative environmental impacts relate mainly to the inappropriate sourcing o f construction materials, such as sand, gravel and construction timber.
An environmental screening process will be implemented to ensure that negative impacts are, as far as possible, avoided through appropriate siting and design measures, and that adequate mitigation measures are put in place for residual impacts, including the use o f green construction guidance. Standard clauses will be introduced into relevant project documentation describing required mitigation measures, simple indicators o f success and a monitoring plan. IDA will review samples o f these documents and will require any corrective actions necessary.
The use o f timber as a construction material may trigger significant indirect and cumulative project impact in the long term. These impacts need to be addressed within the broader context o f Aceh reconstruction for which a specific environmental study will be carried out during the early stages o f project implementation. The output o f the study will be a strategy for making legally sourced timber available to project beneficiaries, integrated with related support t o beneficiaries in applying green construction standards and ensuring adequate environmental monitoring. The project will provide the necessary resources to ensure that expertise i s available to support implementation o f the timber availability and environmental impact assessment study and required fol low up actions. Outline TORS have been developed following discussions with relevant organizations, including UN agencies and WWF
Compliance Monitoring. T o ensure compliance with the social and environmental safeguards framework, several systems have been included in project design. M I S and extemal audits (technical audits and safeguard compliance) will be financed under the fourth project component to provide monitoring support to the PMU throughout the project’s duration. Complaint handling and safeguard compliance officers will be assigned at the PMU and DHPF-BRR to give advisory support for compliance with the guidelines. A regularized Continuous Social Impact Assessment (CSIA) by independent consultants will be carried out during implementation to monitor social issues confronted by beneficiaries. Facilitators and other project staff wil l also be trained in the application o f safeguards procedures and
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guidelines, including green construction guidance specifically designed for Aceh reconstruction and based on recent pol icy guidance provided by WWF-Indonesia.
DHPF-BRR will b e the focal point for interfacing with constituents and beneficiaries about i t s settlement rehabilitation and reconstruction program. The DHPF-BRR wil l house a small communications team responsible for informing people affected by the settlement program about i t s objectives, beneficiary supports, gnevance redressal options, and eligibility criteria for assistance, Communities, local government, as well as project implementation staff (facilitators, project consultants) can direct their questions and complaints to the DHPF-BRR authority. People may submit grievances by mail, telephone to the DHPF-BRR grievance hotline, via KDPWPP community facilitators, or via a website maintained by the DHPF-BRR.
Disclosure. The project i s rated as a category "B", which requires the preparation o f an Environmental Assessment (EA) under OP.4.01. Under normal IDA processing, official receipt and clearance o f the EA by IDA and i t s public disclosure both in IDA'S Public Information Center in Jakarta and IDA'S Infoshop in Washington i s a prerequisite for appraisal. However, under this emergency operation, the SESAF will be disclosed in the local language (Bahasa Indonesia) in Indonesia and on the E-Aceh website.
PART VI11 - MONITORING AND EVALUATION
A comprehensive monitoring and evaluation system will be set up for the overall settlement reconstruction program (see Annex F). This wil l include both internal and external project monitoring and impact evaluation activities. Project monitoring will measure implementation progress with respect to distribution o f inputs, disbursement o f funds, and achievement o f targeted outputs, including progress o f community mapping and land adjudication, completion o f CSPs, formation o f shelter groups (KP), shelter construction achieved, and infrastructure construction achieved month-by-month. Project evaluation will measure outcomes achieved against a project baseline, as wel l as overall project impact, including beneficiaries stated satisfaction with shelter and settlement reconstruction results.
The internal project monitoring and reporting system wil l include bi-monthly and quarterly progress reports by housing facilitators on each participating village. These reports, documenting the village organization progress, community mapping, CSP preparation, KP formation, shelter funding and construction progress, infrastructure planning, funding, and construction progress, will be collected and reviewed on a sample basis by DMCs. This data will be reviewed and verified by DMC, entered into the MIS, and submitted to the Provincial Management Consultant (PMC). Similarly, the P M C will review the data and conduct spot verification field checks, before preparing a consolidated progress report for BRR, the PMU, as well as MPW, Bappenas, and IDA. Month ly reports on complaints and resolution progress will also serve as internal monitoring o f the project, and will be included in the MIS, which will be available through the project website to al l stakeholders and the public at large.
Independent external project monitoring will also be conducted as a control, by inviting the local media to report o n field implementation, as wel l as inviting local NGOs and universities to monitor and review implementation in the field. Their reports and findings wil l be posted o n the project web-site.
Internal project evaluation to measure achievement o f targeted outcomes will be conducted through bi- annual progress reports by the D M C and PMC, which wil l be presented to PIUs, PMU, BRR, local government settlement coordinating committees, other projects, donors, and NGOs in public seminars to discuss progress achieved, problems encountered, and ways to proceed. BPKP will conduct annual project audits, focusing on the P M U and PIU, as we l l as a 5% sample o f village CBOs and KPs, using a C D D audit manual.
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Independent external project evaluation will be contracted by BRR to qualified consultants, research institutions, or NGOs to conduct project impact evaluation. A project baseline o f village profiles will be collected at project start-up by the housing facilitators and stored in the MIS. At two times during the project, before the mid-term project review in September 2006, and at project completion in December 2007, baseline villages will be re-surveyed to measure project outcomes and impact, including beneficiary satisfaction with shelter and settlement reconstruction and rehabilitation.
In addition, the project’s CSIA will be contracted to qualified parties, to assess special topics such as land tenure issues, targeting and gender, and complaints and grievances, among others. Similarly, technical assessment to evaluate reconstruction and rehabilitation quality will be undertaken through technical audits o f housing and infrastructure construction by professional inspectors and independent construction surveyors, contracted by BRR.
PART I X - ANTI-CORRUPTION ACTION PLAN
The project includes several layers within the four components to ensure full transparency and accountability. An Anti-Corruption Act ion Plan was prepared and agreed with GO1 specifically for the project (see Annex H). The BRR wil l significantly reduce the r i sk o f corruption through: mechanisms incorporated in project design, strengthening internal controls; and enhancing the release of information about al l aspects o f project implementation. Internal controls will be strengthened by adopting general safeguards for procurement and financial management. The key measures include: (a) enhanced disclosure provisions; (b) c iv i l society oversight; (c) mitigation o f collusion, fiaud, and forgery; (d) a complaints handling mechanism; and (e) sanctions and remedies. The project will be audited annually by BPKP, using guidelines for C D D projects, and at an increased sample size o f 5% o f project activities.
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PROJECT RESULTS SUMMARY
PDO
To facilitate in-situ reconstruction and repair of settlements and related infrastructure in 100 urban and 100 rural villages in tsunami-affected areas of NAD and Nias, by assisting target households reconstruct up to approx. 10,000 houses and repair approx. 15,000 houses
-Target number of houses (approximately 25,000 households) are repaired or rebuilt - target villages have restored basic, small- scale infrastructure in affected areas -Evidence of beneficiary satisfaction through survey
Key Output Indicators for Each
Component Component One: - # of community surveys and group implementation plans completed - #o f housing groups (KPs) formed - # of housing designs reviewed and structure safety tested - # of grants disbursed for housing recon- rehabilitation - # of houses reconstructed I rehabilitated based on the technically sound, hazard-resistant design (passing inspections) -# of households living in community-built permanent shelter - Average cycle from grant application to completion of housing construction works per village - % of IDPs living in permanent shelter -# of CSPs prepared - # of infrastructure proposals approved - # of infrastructure grants disbursed - # of beneficiaries covered under tertiary and secondary infrastructure constructed - Increased disaster preparedness in community land use - level of beneficiaries’ awareness of
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Frequency
quarterly
quarterly
annually
Frequency
monthly
monthly
quarterly
monthly
monthly
quarterly
annually
annually
Monthly Monthly
Monthly
Annually
annually
Annually
Source
MIS
MIS
Independent survey
Instrument
MIS
MIS
Reports
MIS
MIS
MIS
MIS
MIS
MIS MIS
MIS
Report
independent survey
independent survey
Responsibility
DMC,PMC
DMC,PMC
CSlA consultant
Responsibility
DMC,PMC
DMC,PMC
BRR,PMU
DMC,PMC
DMC,PMC
DMC,PMC
DMC,PMC
DMC,PMC
DMC,PMC DMC,PMC
DMC,PMC
BRR
BRR
CSlA consultant
Component D. Program Support, Monitoring and Evaluation
Monthly
entitlements and
MIS
project processes - number of community campaign sessions organized - # of housing facilitators mobilized, trained and working on the ground - # of training programs carried out for communities on construction activities - # of complaints resolved - Average duration for resolving a complaint case - Rate of beneficiary satisfaction as monitored in CSlA and survey - Incidence of corruption cases per district
monthly
a Monthly
Quarterly
a Annually
quarterly
a Monthly I MIS
MIS
MIS
MIS
independent survey
MIS
I
DMC.PMC
a DMC,PMC
DMC,PMC
DMC,PMC
DMC,PMC
CSlA consultant, BRR DMC.PMC
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ANNEX A: PROVISIONAL LIST OF DESA AND KELURAHAN TARGETED BY THE PROJECT
The l is ts in this Annex are indicative. The project aims at covering 200 areas (100 from rural and 100 f rom urban) in the Phase 1 project, and another 200 in the Phase 2 project f rom these l is ts . In order to avoid duplication o f coverage among donors, GO1 formulated a policy o f “one village, one donor”, meaning a donor should cover the entire village, not partially. However, at the time this Appraisal Report was prepared, demarcation o f coverage among donors i s not yet finalized and subject to frequent changes. Areas covered by this project wi l l be served on first come, first served basis, depending on the readiness o f the communities in taking al l the required preparatory steps as described in Annex D. Other elements may also affect the coverage including: (i) opening o f group bank accounts and timely transfer o f funds; and, (ii) access to and availability o f appropriate construction materials. Based on the project progress, the l i s t o f areas for the project i s subject to scaling up or down.
U r b a n Target Locations - N O
1 - City /District KO Sub district villages
Kota Banda Aceh 89
I
24
8 I Kab. Aceh Tenggara
I I
2 1 I 1 I 1 1 Babus-Salam 27
9
Rural Target Locations
Kab. Aceh Tengah 25 1 1 KotaTakengon 25
District
10 Kab. Gay0 Lues 22 1 1 Blang Kejeran 22
Simeulue
TOTAL 23 402
sub District Villages affected Target by disaster Villages
Trumon 30 8 8 Kluet Selatan 24 5 5 Pasir Raja 20 6 6 Tapak Tuan 15 5 5 Sama Dua 27 11 11 Sawang 15 4 4
Aceh Timur
Bakongan 22 5 5
Julok Daru l Aman Peudawa Idi Rayek Simpang Ulim
35 4 4 45 3 3 17 1 1 63 6 6 23 1 1
Aceh Singkil
Aceh Barat
Singki l 16 7 3 Pulo Banyak 7 7 7 Kuala Baru 4 4 1
Aceh Barat Daya Susoh 28 4 4 Manggeng 29 6 6
21 9 9 Babahrot 7 1 1
I Nias Induk
Arongan Lambale Kaway XVI
17 4 4 60 31 31
26 '
Pantai Ceuremen I 25 2 2
Gunung Sitoli 28 28 28
Nias Selatan Teluk Dalam 32 26
Sub Total : Grand Total:
26
486 888
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ANNEX B: DETAILED DESCRIPTION OF PROJECT COMPONENTS
1. Shelter repair and reconstruction grants (US$50.0 million) Field visits to affected rural and urban communities indicated that housing reconstruction i s a major priority for the affected population in the short to medium term. People also expressed they would l i ke to (i) have control over the construction process; (ii) rebuild their homes themselves as much as possible; (iii) remain on their own land; and (iv) receive the full amount o f support for which they are eligible.
Shelter reconstruction and repair grants will be given as two types o f support based on the GOI’s Master Plan: Rp 10 mi l l ion for partially damaged” or Rp 28.8 mi l l ion for fully destroyed12 houses. These categories and amounts remain flexible to respond to changes in the Master Plan, as designated by GOI. This shelter support grant aims to cover reconstruction and repair costs based on a structure o f about 36 sq. meters based o n the estimates prepared by GOI. To address this need, the project will facilitate in-situ settlement reconstruction of 200 affected desa and kelurahan. The funding i s estimated to provide up to approximately 10,000 shelter reconstruction grants for new housing units and up to 15,000 shelter repair grants. These estimated numbers o f grants are indicative numbers and can only be finalized once the verification o f damage i s complete at the community level.
In order to receive the support, the housing facilitators, along with KDP/UPP facilitators, will assist the communities to conduct a technical damage assessment of individual homes to verify whether the structure i s partially or fully damaged.
All households who meet the eligibility criteriaI3 will receive a support grant. A household qualifies for assistance under the project if i t :
provides either documented evidence (such as tax records, land title or utility bills) or community- based evidence (such as self-survey) o f having l ived in the affected area pr ior to December 26,2004, irrespective o f previous tenure status - Le., renter, owner, squatter; lives within a geographic area covered by this MDTF project and has not already received assistance from other donors for constructing or repairing houses to eliminate duplication o f coverage; joins with other households o f i t s choice to form a K P that opens a group bank account; confirms through the technical damage assessment survey that i t s home was damaged or destroyed by the tsunami-earthquake disaster; and, proves, through community-based mechanisms or documentation, that i t has access to landI4.
The l i s t o f eligible beneficiaries will be compiled by the facilitators with the help o f the KERAP” under UPP or the TPKI6 under KDP. The init ial l i s t will be posted in strategic public places for 10 days. During this time, a village meeting wil l be held to discuss the l i s t so people may air complaints or disputes, ask that another home be assessed, or request to be added to the l i s t if inadvertently le f t off. If
‘I Structure i s intact. l2 Structure i s fully destroyed. l3 Eligibi l i ty criteria are outlined in greater detail in the project Operational Manual based o n criteria developed by GOI. Information about el igibi l i ty criteria and entitlement rights wil l be disseminated to the affected population by the DHWS-BRR external affairs team. l4 Those households wi th clear indication o f land ownership through community consensus will receive grants first, whi le households who are renters, squatters, those who want to move, or households required to move due their proximity to a hazard-prone area, wil l wait until community land consolidation proposals are validated and accepted by B P N through the RALAS project. However, these households are s t i l l entit led to receive funds, subject to the availability o f land. l5 Community Trustee Committee for Reconstruction and Rehabil itation l6 Village-level project implementation team
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any issues arise within the 10-day timeframe, an additional 10 days will be granted so that matters may be resolved among community members under the guidance o f the facilitator team. After the 20-day period has passed and the l i s t has been verified jointly by the facilitator team and community, eligible beneficiaries will form sub-village KPs, open bank accounts, and formulate their implementation plans, These plans lay out these individual groups’ settlement reconstruction plans and will be used as a means to verify construction phases for grant disbursement. In this regard, each KP must open i t s own bank account to receive funds as elaborated in Annex 5.’’
After participating villages finalize l i s t s of eligible households for rehabilitation or reconstruction grants, these l is ts will be submitted to the local BPN-RALAS project facilitators for verification and adjudication o f land claims. Those households with clear land tenure reached by community consensus will be allowed to begin reconstructiodrehabilitation first, while those without clear land tenure status within the community (tenants, squatters, IDPs from other villages) will fo l low the results o f B P N - W A S field verification o f land tenure clearance to begin construction activities.
Grants will be disbursed to community accounts in three tranches o f 40%, 40%, and 20%. KPs wil l give funds to eligible household group members. Tranches wil l be replenished according to the KP groups’ progress in the implementation of i t s agreed implementation plan; the release o f a subsequent tranche wil l occur only after validation and sign-off by the KPs, the housing facilitator who has certified satisfactory completion o f the tasks, and KDP/UPP facilitators as a witness. The signed documents wil l be sent to the PJOK for disbursement authorization and used as a basis for measuring construction progress for future tranche disbursements. Any grants given to renters or squatters must be based on availability o f land to facilitate housing construction and minimize major delays (refer to footnote 15). During implementation, housing facilitators will also work with community members and K D P N P P facilitators to help prepare sound spatial plans and housing designs based on the building codes developed by BRR.
Monitoring and evaluation o f this component will be carried out during implementation, via a continuous social impact assessment, technical audits (construction quality, structure, materials) by independent architects and/or engineers. Other methods o f monitoring and evaluation o f a l l components are outlined in Annex F.
Internally-Displaced People (IDP), namely those who currently l ive in tents, barracks, or with host families or relatives, may decide to resettle in the future and claim their shelter support entitlement. However, the scale o f such needs has not been defined to date. To address this potential issue, this component includes a window o f funds for shelter grants (approximately 10% o f funds allocated under this component). Given the urgency to prepare this project, this window will be appraised at an appropriate time during implementation once the scale and scope o f existing needs are clearly defined. In a similar vein, the need for transitional housing may be considered for inclusion under this component based o n requests f rom communities and the corresponding needs outlined in their CSPs.
Whi le KDP and UPP remain the project’s main partners, NGOs and international organizations which align with the overall operational framework on housing reconstruction envisaged by GO1 and operating under similar principles of community participation will be considered for possible inclusion in the project based o n GOI’s request and in consultation with the communities. In this case, the project, communities and these organizations will enter into partnership agreements.
” Details are explained in the Project Operational Manual (POM)
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2. Block Grants for Priority Infrastructure (US$20.0 million) In order for communities to be truly livable and sustainable, infrastructure must also be restored and repaired in parallel with the housing stock. This component finances block grants o f Rp. 500 mi l l ion per kelurahan or desa for on-site priority infrastructure18 (mainly secondary tertiary connections).
In parallel with the technical damage assessment and establishment o f the beneficiary l i s t for shelter support grants, the communities, together with the facilitators, will design a community settlement plan (CSP) based on self-survey and mapping o f the affected population, assessment o f damaged/destroyed housing and infrastructure, demarcation o f land boundaries, and other priority community needs. The CSP will also include revised community spatial planning and will incorporate hazard risk mitigation strategies, such as paths to higher ground, in the event o f a disaster. Each CSP will be reviewed and verified by facilitators and DMCs, and approved by the P I U o n behalf o f local government authorities (District Shelter Coordination Committees (PEMDA) and BRR). The CSP i s a generic term, and i f a similar format exits in the areas where UPP and KDP are involved, necessary adjustments will be made to the existing formats (Le., KERAP’s reconstruction and rehabilitation plans in UPP-involved areas or TPK’s village development plan in KDP-involved areas.).
According to the village-level community settlement plan (CSP) that includes individual proposals f rom KPs, the community will weigh options presented in the CSP at the village level to decide h o w funds should be distributed among i t s members. This component builds upon and complements existing infrastructure grant support provided through the K D P and UPP systems for community-level infrastructure rehabilitation.
The init ial b lock grant amount starts f rom Rp. 500 mi l l ion per kelurahan or desa, but given the diverse size o f the communities, this i s not a one-time grant, and needs for additional funding will be considered in the framework o f the agreed Community Settlement Plan. Communities whose housing needs are covered by other donors may also apply for infrastructure block grants, provided they utilize similar community-based planning mechanisms, acceptable to GO1 and IDA. Application for supplemental infrastructure funds will follow the same process as the original application: the facilitator team will s ign off on the revised CSP and submit it to the D M C for approval and disbursement.
In addition to the targeted 200 desa and kelurahan, affected communities located within the 15 districts covered by the project whose housing needs are covered by other donors may also apply for infrastructure block grants, provided they utilize similar community-based planning mechanisms, agree to IDA implementation terms, and fol low the same design standards applicable to other beneficiaries.
3. Project Implementation Support (US$11.6 million) Pre-tsunami estimates o f housing construction and repair in Aceh were estimated at between 17,000 and 28,500 per year. Now, 125,000 houses are planned to be reconstructed, with another 150,000 damaged houses to be repaired, totaling 275,000 houses over the next two to three years. The unprecedented size and nature o f the recovery process being undertaken in NAD and Nias require a great deal o f oversight to ensure efficient implementation. This implementation support component will finance a series o f immediate and medium-term technical assistance (TA) activities for (i) establishment and implementation of the shelter support grants and priority infrastructure block grant schemes and financial management systems acceptable to IDA; (ii) overall project implementation at the central and district levels; and (iii) capacity building o f communities at the village level to manage project activities.
There wil l be a simple negative l i s t o f items that cannot be funded including: (i) expenditures intended for mil i tary or paramilitary purpose; (ii) civ i l works for government administration o r religious purposes; (iii) activities related to the manufacturing or use o f environmentally harmfu l products; (iv) activities using, producing, storing or transporting hazardous materials and wastes; (v) activities related to logging; (vi) activities in protected areas; and (vii) activities related to f isheries that are not in accordance with standards set by the Recipient’s Fishery Service Agency.
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Capacity enhancement at the village level i s essential to successful implementation and ownership o f the project, since this project will be the largest settlement reconstruction program in which many community groups have participated and/or managed to date. People who choose to rebuild and repair homes themselves will be provided with training on carpentry and masonry sk i l ls . However, the demand for construction workers will be high, since communities self-rebuilding and repairing their houses wil l require skilled personnel to procure quality building materials, as construction foremen, masons, carpenters, and to a lesser extent, plumbers and electricians. Information and oversight o n sound housing and infrastructure design and construction will also be provided at the village level by the District Management Consultant (DMC) team.
Alongside community representatives, under this component 150 housing facilitators will be hired to be responsible for organizing hands-on training programs for families on technical aspects o f housing design and construction, with an emphasis o n incorporating hazard-resistant design standards. The housing facilitators will also help manage oversight o f the project at the rural village/desa and urban ward / kelurahan levels in coordination with the KDP and UPP community facilitators, monitor housing construction phases, coordinate reconstruction progress with land facilitators provided by the MDTF land administration project (RALAS) for community mapping and community-driven land adjudication processes, and ensure that funds are dispersed to beneficiaries; he or she will also express to the community the logic behind the damage assessments and will help beneficiaries design and budget for costs o f construction to fit within the allocated grant amount. The facilitators will work in teams o f three, including at least one senior experienced facilitator, with two junior facilitators. Each team will cover four villages on average.
During implementation, these housing facilitator teams, under the oversight o f the DMC-based c iv i l engineers and site planning experts, will provide intensive supervision o f construction quality and design. In this regard, the teams will adhere to the earthquake, flooding, and high-wind resistant housing designs and construction methods prepared by BRR. The designs and standards will also be approved and monitored by the P M C and DMCs, o n behalf o f the government (local government housing coordination committees and BRR, PMU, and PIUs).
Recruitment and training of housing facilitators i s expected to take a few months after effectiveness. As an interim measure, a series of training activities on housing damage assessment, community mapping, and fundamentals o f hazard-resistant housing construction and design will be organized for the existing KDP and UPP facilitators in collaboration with UN-HABITAT and L O .
Technical assistance activities are outlined below in the order in which they wil l occur. The f i rst TA package (“Bridging TA”) as requested by GO1 will be financed through reallocated funds under the on- going Urban Poverty Project I1 to facilitate the speedy recruitment o f qualified consultants and ensure the minimum core expertise i s in place to initiate the project. The ToRs o f this TA package appear in Annex M. Based on GOI’s request, retroactive financing o f US$Smill ion i s also included to accelerate the init ial project launch process.
Bridging TA package for immediate assistance (within the Prst three months) 0 hiring o f a core team o f consultants to assist in expediting the planning and operationalization o f
the Directorate o f Housing and Public Facilities under BRR as the overall coordination body for the projects and other donors, Project Management Unit (PMU) and Project Implementation Units (PIU), including finalizing ToRs and procurement support for the subsequent project TA; hiring o f consultants to provide technical advisory support on housing standards and design; and, 0
0 completion o f project manuals.
3 1
Project TA for medium-term assistance 0 hiring o f consultants for the Implementation Technical Assistance to the Directorate o f Housing
and Public Facilities of the BRR, the Provincial Management Consultant (PMC) team, and the District Management Consultant (DMC) teams; design and creation o f a Complaints Handling Unit, CommunicatiodExternal Affairs Unit, and Evaluation Unit within Directorate o f Housing, Waster and Sanitation o f the BRR; establishment o f an M I S system for program reporting and monitoring between the PMU, district level settlement committees, and PIUS; hiring and training o f 150 housing facilitators; Continuous Social Impact Assessments; and, provision o f technical assistance for housing design and infrastructure planning.
0
0
0
0
0
Capacity Building and Targeting 0
0
education o f the affected population and training o f artisans and engineers on technical aspects o f construction and hazard-resistant design practices (such as masonry and carpentry skil ls); and, training o f housing facilitators and community volunteers f rom KERAP, TPK and K P groups in necessary s k i l l s such as bookkeeping, procurement, community organizing principles, and social mapping.
4. This component covers the cost o f assistance to the Directorate o f Housing, Water, and Sanitation (DHPF) of the Earthquake-Tsunami Reconstruction and Rehabilitation Implementation Coordination Agency (BRR) in overall program monitoring and evaluation to ensure that program implementation i s efficient and effectively targeted.
Program Support, Monitoring and Evaluation (US%3.4 million)
This component also comprises the establishment and execution o f an internal and external monitoring and evaluation framework to maximize effectiveness, accountability and transparency during implementation. Such processes also facilitate good governance procedures so that leakages o f resources are minimal. Internal monitoring activities will include regular supervision by the BRR advisory team, the Provincial Management Consultant (PMC) team, IDA teams, and community participatory monitoring meetings attended by community members. External monitoring will comprise a continuous social impact assessment carried out during implementation by a team o f external consultants. Architects and c iv i l engineering specialists will be contracted by the P M U to audit the quality o f houses constructed, as wel l as the infrastructure financed by the block grants. The project will also be audited by BPK.
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ANNEX c: TERMS OF REFERENCE FOR HOUSING FACILITATORS
I. Overview
To achieve the goals of this housing reconstruction project, a good team o f housing facilitators will be essential; communities require technical guidance in order to prepare and execute a comprehensive, inclusive community-based settlement reconstruction and rehabilitation program.
Housing facilitators will be responsible for assisting the communities in the following activities: (i) execution o f damage assessment and eligibility verification; (ii) providing technical advisory support for and training o n settlement planning and design, hazard-resistant construction methods, and supervision and quality control; (iii) monitoring o f fund disbursement to beneficiaries; and, (iv) giving technical endorsement of housing reconstruction and repair phases.
11. Scope of Work
During project implementation, housing facilitators (HF) will be hired to work across al l targeted desa and kelurahan to assist the communities and provide necessary facilitations to the KPs (Kelompok Permukian-sub-villagelsub-kelurahan community groups on settlements) on the issues related to housing and infrastructure b lock grant programs.
Given that housing i s one o f the community’s main concerns and i s closely inter-linked with other community issues, KDP/UPP facilitators will guide the housing facilitators to integrate with existing facilitator teams and to work jo int ly to organize community meetings, conduct technical damage assessments, and to provide necessary technical support in community settlement plan preparation during settlement reconstruction.
HFs will be responsible for verifying and signing o f f (co-signing with each KP bank account-holder for housing grants and KERAP/TPK for infrastructure block grants) on the ground the necessary documentation for applying for shelter support, infrastructure block grant programs, and tranche disbursement requests. KDP and UPP facilitators will also s i g n as a witness. The HF will report to the district-level management consultant (DMC) team located within the project implementation unit (PIU) responsible for program management in his or her districts and sub-districts.
Support by this facilitator team may be offered to other donors working on settlement reconstruction to share experiences and to exchange good practices. M a i n duties o f the housing facilitators are outlined below.
Duties o f Facilitators
Project Management K n o w and understand project goals and objectives, principles and procedures as described in the project’s Operational Manuals (Pedoman Umum, Petunjuk Operasional, Petunjuk Teknis) Work jo int ly with KDP/UPP facilitators on the ground to synergize community-based post-disaster reconstruction activities addressed by both programs Disseminate information to a l l community residents, kelurahaddesa formal and informal leaders, community organizations, and particularly poor families and individuals about project goals, objectives, principles and procedures - including but not l imi ted to beneficiary eligibil i ty criteria, construction design, methods, timing, and support options Collect and organize data on settlement damage andor reconstruction progress by village for reporting to the D M C on a monthly basis Enter data collected at the village level into M I S
33
0 Coordinate with other donors working on settlement reconstruction and rehabilitation issues as needed
Damage Assessment and Eligibility Verification 0 Assis t the community in preparing i ts community settlement plan (CSP) highlighting
damageddestroyed homes o Help communities conduct self-survey and mapping activities along with KDPAJPP facilitators o Verify that the mapped information i s correct and that infrastructure i s properly identified o Conduct damage assessments o f all homes in the village affected by the tsunami-earthquake
disaster that occurred on December 26,2004 o Work with T P K and KERAP community groups to consolidate a l i s t o f eligible beneficiaries,
including damage data, to send to the PJOK for verification and to initiate grant disbursement o Encourage community members to form KPs in a timely manner o Work with the K D P and UPP facilitators to assist the communities in preparing CSPs or their
equivalent based on the guidelines provided by the project Operational Manual o Ver i fy and sign-off on infrastructure block-grant applications with representatives o f T P K at the
village 1evelKERAP at kelurahan level Train volunteers at the village level in the housing damage assessment methodology Assist KERAP and T P W P K in the review o f the communities’ settlement reconstruction proposals for identifying and addressing hazard-prone areas, environmental, land acquisition, resettlement, or indigenous population issues and considerations
0
0
Technical Advisory Support and Training Participate in and successfully complete al l MDTF project-based training courses as required by the PMC and DMC Coordinate with other donors hands-on construction sk i l ls training programs, such as carpentry and masonry Assist in the planning o f community infrastructure maintenance activities Ensure the building materials used by communities are o f high quality and appropriate for construction standards applied by the Govemment, P M C and D M C Advise communities under the guidance o f the D M C team in hazard mitigation measures (such as emergency escape routes, hazard mapping) to reduce their vulnerability to future disasters Train community volunteers in good construction processes as designated by the building codes established by BRR, including hazard-resistant design techniques (earthquake, wind, flood, tsunami), so that those who choose in-situ construction have a basis for rebuilding their homes to higher standards Help the community develop housing designs that are feasible and fall within the proposed grant support Work in coordination with the land facilitators hired through the MDTF-RALAS to assist in community land adjudication processes.
Fund Disbursement and Monitoring 0
0
0
0
Provide necessary information to and assist the KPs in opening group bank accounts Ensure that project funds disbursed to the community bank accounts are received and in tum disbursed to eligible beneficiaries Ensure that the grants given to beneficiaries are used for housing reconstruction and rehabilitation purposes Assist KERAP and T P K in the preparation o f progress reports, financial reports, and independent audit reports as described in the project Operational Manual
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Technical Endorsement o f Housing Reconstruction and Repair 0
0
Veri fy and sign-off on K P housing grant applications jo int ly with the KPs and KDP/UPP facilitators as a witness Certify the tranche request o f each KP based on i t s progress in the implementation o f the group’s proposed implementation plan
Complaints and Conflicts 0 Ensure al l community members understand where and how to lodge a complaint concerning any
aspect o f the project 0 Assist K D P and UPP facilitators in ensuring that all complaints are followed-up at the appropriate
level, and assist in forming resolution 0 Assist K D P and UPP facilitators in supporting the parties lodging complaints, along with parties
seeking resolutions at the community level, i f possible
Period of Service
Facilitators will be employed, trained, and assigned to two target kelurahan or desa for a period o f 12 months, with the possibility o f extension based on need as wel l as favorable perfonnance evaluation b y the D M C .
Recruitment
Recruitment o f facilitators wi l l be undertaken by the D M C s in an open manner by advertising in local mass print media. Selection o f candidates wi l l be based on verification o f the minimum qualifications required, followed by testing, interviewing, and upon acceptance o f the position, training. Women are encouraged to apply.
Training will be conducted by the DMCs, which wil l utilize training modules prepared by the PMC, (additional training materials may be used only with the permission o f the PMC) covering orientation to the project Operational Manual, technical guidelines for damage assessment, as wel l as sk i l ls necessary to communicate effectively with community members.
Qualifications
Minimum bachelor (S-1) degree, or technical (D-3) diploma Experience o f at least five years for senior facilitators, and two years for junior facilitators, preferably in the field o f architecture or c iv i l engineering (this would be an asset but i s not mandatory) Basic understanding o f and experience with computers for reporting purposes and M I S data entry B e willing to reside in an appropriate location with ready access to assigned target kelurahan or desa. Demonstrate the ability to work congenially and productively with other facilitators in a team context, as wel l as local govemment officials, consultants, and village leaders Knowledge o f local construction practices i s desirable
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ANNEX D: COLLABORATION AMONG THE FOUR MDTF-APPROVED PROJECTS
A. Background
The ultimate goal o f the post-tsunami reconstruction effort i s to assist in the recovery o f living conditions o f the affected population. Access to safe, well-constructed and decent housing, basic services and tenure security constitute critical steps in making this recovery a reality. A long with the Community- based Settlements Rehabilitation and Reconstruction Project (CSRRP-NAD), the following projects will also be implemented under M D T F :
(i) Kecamatan Development Project (KDP); (ii) Urban Poverty Project (UPP); and (iii) Reconstruction o f Aceh Land Administration Project (RALAS).
The overriding principle that runs through the settlement project i s to ensure a mechanism for the affected population to plan and decide on investments, control funds, implement projects, account for funds expended, and maintain works constructed. In this principle, the project builds on the r i ch experience o f two ongoing Community Driven Development (CDD) operations: KDP and UPP. B o t h projects form the core of the CDD platform o f IDA’S assistance program in Indonesia and are already working o n the ground in the Province o f NAD. K D P was the only donor program operational in Aceh before the tsunami. In the aftermath o f the tsunami, UPP 2 mobilized existing teams to initiate preparatory activities for launching community-based reconstruction activities. And UPP 3, recently approved by IDA’S Board o f Directors, i s scheduled to initiate operations in the Province ’of NAD.
The three MDTF operations (KDP, UPP and RALAS) build upon ongoing IDA-financed projects and will p lay an important role in supporting the implementation o f community-based settlement rehabilitation and reconstruction processes. T h e essential project mechanism i s maintained in the MDTF operations, with l imi ted adjustments to fit the emergency context. The project cycle i s simplified and accelerated in both K D P and UPP (four to six months in KDP-Aceh as compared to 9-14 months in the normal cycle; and, three months in UPP-Aceh as compared to eight months in the normal cycle). W A S integrates Community-driven Adjudication Systems (CDA), a community-led process in documenting and reestablishing plot boundaries for the issuance o f land titles. R A L A S will recruit C D N L a n d facilitators who will train community volunteers and the teams o f facilitators (Housing, UPP, KDP, and CSRRP- NAD) to ensure technical soundness o f the mapping and community-based process o f verifying tenure status.
The objectives o f this Annex are:
0
0
0
To clarify the inter-working relationship among the above four MDTF projects (KDP, UPP, R A L A S and C S W - N A D ) ; T o explain how jo in t efforts o f these parallel projects culminate in providing the target population with access to decent housing, basic services, and a certain degree o f secure tenure; and, T o clarify new or additional measures introduced into the existing operations (KDP and UPP) to support the settlements rehabilitation and reconstruction program.
B. Coordination Arrangements
Coordination o f M D T F A N S projects will be undertaken at a l l levels, village, district, province, and national. At the village level, R A L A S facilitators will train housing facilitators and UPP and KDP facilitators in the proper method for community mapping required for adjudication purposes. Upon completion o f target village community mapping, results will be submitted to R A L A S B P N for land certificate processing.
36
At the district level, progress o f settlement reconstruction and priority infrastructure will be reviewed by the district settlement coordination committees, as wi l l be the land certification process o f land on which housing i s being reconstructed. Similarly, at the provincial level, the settlement coordination committee will monitor and review progress achieved and problems encountered.
At the national level, an M O U wil l be formulated and signed among al l four projects’ executing agencies, Home Affairs, Public Works, and BPN. Coordination will also be facilitated through the Wor ld Bank Task Manager’s regular meetings and communication.
C. Implementation Process
Basic Steps to Community Settlement Reconstruction and Rehabilitation. As in Annex B (Components Description), for the implementation o f the settlement grants program (housing repair and reconstruction, infrastructure), the following basic steps will be adhered to: (i) mobilization o f facilitators and community organizing; (ii) community mapping and technical damage assessment; (iii) establishment o f eligible beneficiary l is ts; (iv) preparation o f implementation planslcommunity settlement plans; and (v) disbursement o f grants in trancheslconstruction activities.
Based on the above steps, the diagram on the last page o f this annex enumerates the chronological sequence o f actions to be taken by each MDTF project to rehabilitatelreconstruct the target settlements and recover land t i t le registrations.
Linkage with KDP and UPP in Community Organizing and Socialization Processes. The CSRRP- NAD will re ly heavily on the community organizinglcommunity group formation processes facilitated by the KDP and UPP teams. The CSRRP-NAD recruits and trains teams o f housing facilitators (three facilitators per four villages), who will be entering target areas already organized, ’or being organized, by the above two project teams. With support f rom the KDP and UPP facilitator teams, housing facilitators will familiarize themselves with the communities and work closely with the teams to in form communities about the project, entitlements, and procedures for conducting the damage,assessment. The housing facilitators and community housing groups co-sign tranche disbursement requests, with KDP and UPP facilitators witnessing. However, housing facilitators may not be mobil ized until September 2005. T o lessen the risk o f delay, the CSRRP-NAD, together with the W A S , intends to provide early training for K D P and UPP facilitators already worlung in affected areas on the basics o f entitlements, specific procedures for damage assessment, and community mapping to fill this potential gap.
Linkage with RALAS on Community-driven Adjudication (CDA) Processes. The Reconstruction o f Aceh’s Land Administration System (RALAS) Project will coordinate with and support the CSRRP’s housing rehabilitation and reconstruction, as well as priority infrastructure construction, with the entry point for coordination between the two projects being the community mapping, which will fo l low the R A L A S community-driven adjudication process. These projects will work together to phase in areas o f interventions in order to ensure that the community-based land adjudication process for t it le issuance and housing reconstruction activities will not conflict with one another or cause delays in implementation. Community mapping i s a process to inventory land plots, demarcate boundaries and verify inheritance issues. In case a community agrees to change or adjust boundaries through right o f way or voluntary land consolidation for the purpose o f improving site layout (road realignment, etc.), or allows renters previously residing in the area the option to purchase land, the community can present these decisions as part o f i t s community settlement plan (CSP) to the BPN. B P N wil l regularize the tenure based on the proposed plan, as long as this plan i s approved by both the community and the Government, and that any land disputes are resolved during the mapping and planning processes. Once community mapping and planning i s completed, agreed upon, and validated by the community, land adjudication and title issuance will proceed in parallel with settlement construction activities.
37
This project will coordinate with R A L A S to identify and begin building in communities where the land project and B P N are able to quickly af f i rm the property rights pattern as derived from community-based land adjudication. Community damage assessment self-survey will identify households requiring reconstruction and repair. Those households with clear indication o f land ownership will receive shelter support grants first, while renters, squatters, households wanting to move, or households required to move due to their proximity to hazard-prone areas, will wait until community land adjustment proposals are validated and accepted by B P N through RALAS.
Linkage with UPP and KDP on Infrastructure Block Grants. For infrastructure, b lock grants o f the CSRRP-NAD will be matched with the block grants under UPP (Rp. 500 mi l l ion per kelurahan) and KDP (ranging from Rp. 1-4 billion, based on damage per kecamatan). The Community Settlement Plan presents the community’s (village or kelurahan) priorities in infrastructure and identifies possible funding sources.
D. Additional and New Measures to be Introduced to KDP and W P
The following i s a summary o f new and additional measures to be introduced into K D P and UPP for the purpose o f effectively implementing CSRRP-NAD:
Group account^'^: For KDP, the TPK (Activity Management Team at the village level) and for UPP, the K S M (community self-help groups) will be the groups held accountable for grant management at the micro level. o For desa organized through KDP: In each target desa, the TPK, a village-level task force selected
by the community, wil l be responsible for settlement reconstruction activities. Members o f T P K will form sub-TPKs (settlement groups, KP), each o f which will open a group bank account. In regular KDP operations, a percentage o f the grant allocation i s utilized for administration costs to pay the TPKs. For the CSRRP-NAD, administration costs for the TPKs will be borne by the project but will not be based upon a percentage o f the shelter grant assistance. Instead, T P K members will receive a modest honorarium. The TPK and the housing facilitators (witnessed by the K D P facilitator) will s ign o f f o n tranche disbursement requests by the KPs for the funds to be directly transferred to the local branch o f BRI. Infrastructure block grants, however, will be disbursed to the group bank account under the TPK.
o For kelurahan organized through UPP: In each target kelurahan, group bank accounts managed by the KSMs2’ will be established for the shelter support grants. KERAP (Committee for Community Reconstruction and Rehabilitation), the UPP facilitators, and the housing facilitators will verify and s i g n o f f o n tranche disbursement requests. Infrastructure block grants will be disbursed to the group bank account under the KERAP.
Grant Funding in Tranches. While both K D P and UPP disburse block grants, the level o f financial authorization to request release o f funds (KDP at kecamatan level, UPP at the kelurahan level) and threshold differ. For both projects, the amount o f funds f lowing into the group accounts surpasses the amount normally handled during regular operations2’. In order to mitigate the risk o f mismanagement and overestimation o f absorptive capacities, the shelter support funds will be released in multiple tranches (3)22 based on reconstruction and rehabilitation progress. Tranching o f funds will be based upon the community’s definition o f construction phases, which wil l be spelled out in the implementation plan. For example, some communities may opt by construction phases, others may opt by priorities using the in i t ia l tranche for those in the most urgent need for housing such as pregnant women, or for financing totally damaged housing, to be later followed by partial repairs. Upon agreement among the community and
l 9 Detailed description o f flow o f funds i s in Annex J (Financial Management). 2o The average size o f a K S M ranges f r o m 5 -10 households. ’’ For details see Annex J (Financial Management). 22 40%, 40% 20%
38
facilitator team, the CSPs wil l be submitted to the District Settlement Coordination Committee and PJOK for approval.
Role o f Housing Facilitators. The project finances recruitment o f housing facilitators (HF) (see Annex C for the TORS). They serve as the closest counterparts to the TPKs and KSMs on al l matters related to settlement rehabilitation and reconstruction. They will be responsible for conducting technical verifications o f shelter support grant activities, endorsing disbursement requests as technical experts, and providing guidance and training on hazard-resistant design standards. However, in many cases, housing issues are related to other aspects o f community development. Due to this issue, the HFs will liaise closely with the KDP and UPP facilitator teams. C S W - N A D will s i g n an M O U with both KDP and UPP to define responsibilities o f each type o f project facilitator working in the field.
Operational Manual and Harmonization of Procedures. The CSP acts as the document required for applying for shelter support and infrastructure grants. The K D P mechanism uses “Village Development Plans”, a “Funds Util ization Plan” and an “Expense Report” as documentation for addressing all the reconstruction priorities of the community, including housing. The UPP mechanism uses a “Community Rehabilitation and Reconstruction Plan (CRRP)” as documentation for the similar purpose as outlined above. This will be followed by community mapping (documenting the damage and pre-tsunami status o f land use in the community), a community-spatial plan (indicating the proposed land use and site layout in coordination with the RALAS facilitator team) and a community / housing plan (number o f eligible grants, detailed l i s t o f anticipated expenditures for housing repairs and reconstruction), a l l to be attached to the CSP.
To minimize confusion and to expedite the processing o f grant applications and tranche disbursement requests, common formats for the required documentation needed for grant applications will be developed and included in the Project Operational Manual, currently under preparation. The P O M will be issued by BRR, to be binding on al l other projects. This will ensure that a l l the target communities fo l low a harmonized procedure. A Memorandum o f Understanding will be signed between the Executing Agencies o f KDP, UPP, R A L A S and CSRRP to clearly define responsibility o f each project, scope o f collaboration, and coordination arrangements. Adjustments will also be made to the operational manual of each project to accommodate the specific requirements o f the CSRRP.
’
39
Scheme of Coordination at Different Levels
CONSULTANT
COORDI NATl ON M EETl NG
I/CSRRP-NAD/RAIAS/ KDP ~ U P P ~
u ................................................................................ ..................
I/ P:; I , I , I ,W) (I I Local BWGff~ce PJOK PJOK
CSRRP-NAD KDP UPP
\
flhly Meefhg .......................
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FIGURE 1 - CHRONOLOGICAL DIAGRAM: COLLABORATION OF THE FOUR MDTF PROJECTS TO DELIVER HOUSING, INFRASTRUCTURE AND LAND TITLES
Role of UPP-Aceh (urban)
Recruitment, training and mobilization o f Facilitators Registration and training of community volunteers Establish l i s t o f areas to be covered under the project FGD/SocialisationMaster plan Formation o f KERAPs
o Community self- surveyiCommunity Mapping
o Technical damage assessment
o Establishment o f beneficiary list
o Community Settlement Plan (CSP) preparation
o Community to reach consensus on the CSP
UPP facilitator to witness joint sign-off by the Housing facilitators and KERAP to submit for approval by Settlement Coordination Committee Opening of KP accounts Sending the master list of beneficiaries and account information to BRI
Facilitators s ign off tranche release request to BRI Construction activities managed by KSMdKPs Regular accountability meetings Referring complaints
Role of KDP- Aceh (rural)
Recruitment, training and mobilization of consultants Coordination meeting among provincial consultants, district consultants, and kecamatan facilitators meetings/socialization Establish list of areas to be covered under the project Election of TPKs
o Community mapping
o Technical damage assessment
o Establishment o f beneficiary list
o Community Settlement Plan (CSP) millage Dev't Plan preparation
o Communityto form consensus on the CSP
KDP facilitators to witness joint sign off by Housing facilitators, TPK and Village and submission for approval by Settlement Coordination Committee OpeningofKP accounts Sending the master list of beneficiaries and account information to BRI Facilitators s ign o f f tranche release request Construction activities managed by TPWUPKs
accountability meetings. Refer complaints
Regular
Basic Steps
Community organizing Election o f community representatives and formation of community working groups
coordinate locations where each project i s working
Project teams
Technical Damage Assessment Establishment of beneficiary list Community mapping (documenting the tenure status before the tsunami Community Settlement Plan or i t s equivalent Community consensuson implementation plan (phasing, prioritization etc.)
Project teams work with local govemment and BRR to resolve any squatter, renter or other resettlement issues, i f necessary. Sign-offof CSP and Housing Grant Application Openingof group bank accounts
Construction Activities. Tranche disbursement
Role of CSRRP- NAD
1 Recruitment of Project consultants at PIU and DHPF-BRR
training of Housing Facilitators
B Establish list of areas to be covered under the project
1 Recruitment and
I Mobilization of Technical Housing Facilitators
I Leading technical damage assessment with support from UPPiKDP facilitators and community volunteers
facilitators in community mapping
* Collaborating with UPP and KDP facilitators in CSP preparation and technical review of CSP.
m Liaising with land
Technical review and sign-off of CSP before submission to Settlement Coordination Committee
communities in opening bank accounts
communities in planning materials purchase
Assist the
Assist the
Verifyingand signing off (with KDP and UF'P facilitators) each tranche requests from communities Input to the MIS Referring complaints
Role of R 4 L A S
1 Recruitment and training of Land Facilitators Training of existing UPP and KDP facilitators as interim measure Establish list of areas to be covered under the project
BPN to demarcate all roads and sections to provide a reliable ground framework for community adjudication RALASteam providing necessary support to ensure technical soundness of mapping process based on Community Adjudication Manual, to cover: land parcel inventorization, boundary demarcation
Once the community mapping completed and agreed by the community, the map will be publicly posted (notification process) and within 30 days, BPN will verify and officially confirm Within 90 days from the official confirmation, titles will be issued.
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2. Fur unity
42
ANNEX E: ORGANIGRAMME OF IMPLEMENTATION STRUCTURE
MPW
IMPLEMENTATION STRUCTURE FOR GOVERNMENT’S SETTLEMENTS RECONSTRUCTION AND REHABILITATION STRATEGY
B A P P E N A S BRR, other relevant sector
PIU city/ district
4 BRR
Directorate for Housing, Water Supply and Sanitation, Strengthened with Implementation TA consultants
(external communications, complaints handing, and evaluation)
PIU PIU PIU cityl ci tyl city/ district district district
Line of Control Line of Facilitation and Coordination Line of Coordination
_ - - - - - b
- - - - - - -
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IMPLEMENTATION STRUCTURE FOR PROJECT IMPLEMENTATION
I
Settlement Coordinating I Bupati Committee - Coord. Team - -
Project Management Unit (PMU) - MDTF Housing
(PMC sits within and services the PMU)
Project Implementation Unit (PIU)/ SecrZrtariat
District Management Consultants (DMC)
I ................................................................. ! Bupati Appointing the i committee members
I I ................................................ I ! ; I Bupati I ........... 1 appointing 1 I \ PJOK 1 1 1 , ............................................... : I
Line of Control Line of Facilitation and coordination _ _ _ - _ - b
_ _ - _ - - - Line of Coordination
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ANNEX F: OVERVIEW OF MONITORING AND EVALUATION SYSTEMS
Monitoring and evaluation i s a key feature o f the MDTFANS Community-based Settlement Rehabilitation and Reconstruction Project. A number o f important lessons have been learned through the monitoring and evaluation experiences with other community driven development projects. These include the need to separate the tasks o f project monitoring, reporting, and limited internal evaluation (such as best practices), which will be undertaken by the project implementers (PMU, PIU), assisted by project consultants (PMC and DMC), and project facilitators, f rom project extemal evaluation, including tasks such as financial and technical audits, achievement o f project outcomes and objectives, and measuring project impact, which will be undertaken independently and contracted out to separate consultants o n a task-by-task basis.
I. Monitoring
Program Monitoring Overall program monitoring and oversight for the National Comprehensive Settlements Rehabilitation and Reconstruction Program will be the responsibility o f the Directorate o f Housing, Water, and Sanitation (DHPF) o f the NAD-Nias Reconstruction-Rehabilitation Agency (BRR). This includes monitoring o f implementation progress o f a l l reconstruction activities undertaken in NAD and Nias, as wel l as coordination with other agencies and donors involved in settlement reconstruction. The project will provide technical expertise in the form o f advisers to the BRR in the operation and management o f a Settlement Reconstruction MIS. This Program M I S will regularly monitor financing, reconstruction, public services, population welfare, and public perceptions o f the reconstruction and rehabilitation effort in NAD-Nias. Data and indicators will be collected on finances, infkastructure, utilities, public services, housing, livelihoods, social welfare, health and population, and education. The CSRRP M I S which wil l be developed and implemented for the project (see below) wil l be an integrated part o f the BRR MIS.
Project Monitoring Project monitoring will be the full responsibility o f the PMC, and it will report monthly o n project implementation progress as measured by inputs delivered, funds disbursed, and outputs achieved. Specific topics o f monitoring will include progress o f community mapping, completion o f damage assessments, formulation o f CSPs, formation o f shelter groups ( U s ) , infrastructure construction planning, physical and financial progress o f housing and infrastructure reconstruction, and complaints handling from the Complaint Handling Units o f the PMU and BRR.
The PMC wil l train D M C staff as wel l as housing facilitators in the systematic periodic project reporting formats f i om housing facilitators up to the executing agency and national steering committees. This project monitoring system will be computerized, with standard report formats developed in menu format for ease o f data entry, compilation, and summarization, as reports f low f rom housing facilitators, to district'city D M C s and PIUS, to P M C and PMU, and finally to the executing agency, national steering committee, and the Wor ld Bank. At the districtkity level, the D M C s will verify the compiled reports o f housing facilitators through random sample field checks or checks o f questionable data. Similarly, at the provincial level, the P M C will also verify al l consolidated DMC reports using the same method.
Project monitoring will be done with a view to analyzing and improving project management and using the results to make management decisions. The project M I S will be designed to streamline and simplify data collection methods. Monitoring information will be consolidated into the M I S using computer-based data entry. The 150 housing facilitators will use a paper-based system to enter desakelurahan specific information. Payment of the housing facilitators' salaries and expenses wil l be dependent o n submission o f these reports. At each district these paper reports wil l be consolidated by administrative support staff into the computer-based system, for which they will receive specific training. The information will be transferred electronically to the D M C and P M C where possible. If electronic links are not operating, then the data will be transferred using diskettes.
45
D M C s will enter their process implementation monitoring data into the system. The system will be set up so that i t can generate reports for communities and for local governments at each level. Monthly project reporting and monitoring data will also be made available on the project website, to all levels o f the project, government, and the public at large. Printouts o f some o f these data wi l l be taken to communities to allow for the desa / kelurahan to benchmark their perfomance with those o f their neighbors, allowing government departments and c iv i l society groups to observe project implementation progress.
Finally, the Wor ld Bank will conduct periodic project supervision missions with the Executing Agency. BRR as wel l as the PMU, PIUs, PMC, and D M C s will assist and participate in these jo int supervision missions. M D T F A N S members and representatives wi l l be invited to participate in these missions as well.
Oversight by Civil Society Groups The project will also seek to establish independent project monitoring. Local media will be contracted to write articles about how the project operates and i s progressing on a regular basis. The project will provide full access to monitoring, financial and evaluation data to all stakeholders and to any other c iv i l society organizations (CSOs) such as local NGOs or universities that request such access and wish to verify such data with actual f ield conditions. BRR has additional budget allocation to contract independent monitoring entities such as universities or NGOs to provide independent monitoring o f the project implementation.
11. Project Evaluation
Internal project evaluation will measure project outcomes and objectives achieved. It wi l l be conducted through bi-annual progress reports by each D M C and the PMC, which will be presented to PIUs, PMU, BRR, local government settlement coordinating committees, other projects, donors, and NGOs in public seminars to discuss progress achieved, problems encountered and overcome, and ways to proceed which may maximize the outputs, outcomes, and impact o f the project.
GO1 will conduct hierarchical routine and ad-hoc monitoring and evaluation o f the project. District housing coordination committees will arrange for members to participate in periodic meetings and field trips to monitor project activity. At the provincial level, the housing coordination committees will conduct similar monitoring and evaluation meetings and f ie ld trips with their members, together with the Directorate o f Housing, Water, and Sanitation o f BRR.
Finally, participant monitoring and evaluation will also be utilized. Housing facilitators, assisted by K D P and UPP facilitators, will train and assist K P s to monitor and evaluate their own group’s performance. Cross-group activity evaluation will also be undertaken between neighboring villages and districts.
Financial Audits In addition, BPKP will conduct annual project audits o f the PMU and PIUs, as wel l as audits o f 5% samples o f village CBOs and KPs, using a new, community-driven development (CDD) audit manual developed by BPKP.
111. Impact Evaluation
Project Baseline and Impact An independent project impact evaluation will be conducted to measure project impact and achievement o f project outcomes and objectives, including number o f victims n o w living in reconstructed or rehabilitated housing, number o f beneficiaries f rom reconstructed community infrastructure, and overall satisfaction level o f beneficiaries. At project start-up, housing facilitators will collect baseline data o n basic village profi le data including pre- and post-tsunami population, households, gender, age ranges, housing situation, previous employment, current employment, children in school, transportation, and
46
basic village infrastructure pre- and post-tsunami. The baseline data collected will be stored in the project M IS . At two times during the project, before mid-term project review (September 2006) and at project completion (December 2007), data will be re-collected from sample villages and compared to the baseline by independent researchers/consultants contracted by BRR.
Continuous Social Impact Assessment (CSIA) In addition to baseline data evaluation, continuous social impact assessment (CSIA) will be conducted to facilitate articulation o f community perceptions, grievances, and feedback vis-&vis identification o f beneficiaries for housing reconstruction and rehabilitation. CSIA will assess the social dimensions o f the recovery, rehabilitation and reconstruction effort. Through direct interaction with beneficiary communities, i t wil l carry out independent evaluation o f project implementation and distribution o f project benefits. I t will assess project impact and help to identify necessary mitigation measures. Specifically, the CSIA will:
1. Assess social targeting, including gender, and timely and appropriate distribution o f shelter support grants;
2. Record public, concerns, and grievances, presenting them in local formal decision-making forums; 3, Identify social risk mitigation measures; 4. Guide and conduct independent social and community audit to mitigate possible negative effects and
enhance positive effects; 5. Review land tenure issues and i t s impact on housing reconstruction; and, 6. Review social safeguard issues and prepare checklists to ensure social soundness and religious/ethnic
equity to minimize social exclusion.
An independent research institute/university/consultant wil l be contracted by BRR to undertake the project impact evaluation and the CSIA. Reports will be submitted to the Ministry o f Public Works, BRR, and the PMU for distribution. In addition, other special studies focusing on specific issues identified during project implementation may be undertaken.
Technical Auditing and Evaluation Settlement housing reconstruction and rehabilitation wi l l be evaluated for meeting basic specifications o f construction quality and soundness, as wel l as earthquake resistance both by independent inspectors and construction surveyors contracted by BRR to conduct technical audits o f project reconstruction.
Resources A total o f US$ 1.8 mi l l ion i s provided for monitoring as wel l as evaluation o f the project/program. A budget o f US$1.6 mi l l ion for M I S development and management will be included in Component C. Implementation Support.
progress, provincial infrastructure construction progress complaints handling status report
WB annual PMU, MoF, BRR,
MPW, Bawenas.
supervision missions
engineering firm, contracted by BRR
External monitorinK periodic project monitoring at village levels
1 r B W , Bappenas,
Internal evaluation : Village housing reconstruction I rehabilitation completion report; village infrastructure completion report district housing reconstruction I rehabilitation completion report; district infrastructure completion report Project housing reconstruction I rehabilitation completion report; project infrastructure completion report External evaluation: Baseline impact
Continuous social impact assessment (CSIA)
BPKP audits
technical audits of construction
committee I, Bappeda I, MPW, I 1 Bappenas, WB,
checks sample of reports
web-site PMU, BRR, settlement committee I, Bappeda I, MPW, Bappenas, WB,
I web-site PMU, BRR, MPW, I quarterly I national steering
annual
~
Village CBO, kepala desa, camat, DMC, PIU, settlement committee II
PMC, PMU, BRR, settlement committee II
annual PMU, BRR, settlement committee I, MPW, Bappenas,
. . . audit of PMU and PIU I I WB Architectural I annual I PMU,BRR,
WB on project implementation progress
external indicator of project implementation progress and beneficiaries satisfaction Cross-check of project reports and information
external control check on project implementers
supervision by DMC and PIU on achieving project outcomes
supervision by PMC, and PMU on achieving project outcomes
supervision by BRR, executing agency, WB on achieving project outcomes
Compares current and post-project target villages with pre project condition
lndepth studies of critical issues affecting desired outcome, objective, impact Cross-check for mis- use of funds, corruption Technical assessment community-built
48
ANNEX G: ENVIRONMENTAL AND SOCIAL SAFEGUARDS FRAMEWORK
A. Introduction The project i s expected to support rehabilitation and reconstruction o f settlements (rural and urban) affected by the December 26,2004 earthquake and tsunami through a block grant program for housing and in-situ infrastructure. I t builds on the community-driven development (CDD) mechanism evolved through the on-going Bank-financed Kecamatan Development Project (KDP) and Urban Poverty Project (UPP) that are operating in devastated kelurahan and desa areas. Based on the eligibil i ty criteria, it will provide block grants to reconstruct up to approximately 20,000 new houses, and to repair up to approximately 30,000 damaged houses in 400 desa and kelurahan.
B. Objectives of the Framework The environmental and social safeguards framework provides general policies and guidelines to serve the fol lowing objectives:
Protect human health; Prevent or compensate any loss o f livelihood; Prevent environmental degradation as a result o f either individual investments or their cumulative effects ; Enhance positive environmental outcomes; Avo id or minimize involuntary resettlement; Avo id conflict among community members and strengthen the community’s social cohesiveness; Prevent or compensate any loss o f livelihood from the loss o f land or access to natural resources, including land because o f the project; and Restore the living condition o f the affected communities.
Implementation o f these guidelines i s built in to the project oversight and housing facilitator terms o f reference, and the project provides external audits o f their implementation. The framework takes into account the Green Reconstruction Guidelines for Policy Makers, and Best Practice Implementation Guidance in Green Reconstruction for Implementing Agencies, prepared by WWF Indonesia (Feb 2005). This project triggers the following Wor ld Bank environmental and social safeguards policies.
W o r l d Bank Safeguards Policies
Safeguard Policies Triggered b y the Project Yes N o Environmental Assessment (OP/BP/GP 4.0 1) [XI [I Natural Habitats (OP/BP 4.04) [I [XI
Pest Management (OP 4.09) [I [XI Cultural Property (OPN 1 1.03, being revised as OP 4.1 1) [XI Involuntary Resettlement (OP/BP 4.12) [XI [I Indigenous Peoples (OD 4.20, being revised as OP 4.10) [XI
Forests (OP/BP 4.36) [XI [ I Safety o f Dams (OP/BP 4.37) [I [XI
Projects in Disputed Areas (OP/BP/GP 7.60) [I [XI
Projects o n International Waterways (OP/BP/GP 7.50) 11 [XI
[ ]
[ ]
C. Environmental and Social Issues
C.l Environmental Issues The project will not lead to land conversion, destruction o f environmentally sensitive areas, or historically significant sites andor other cultural resources. Timber requirements for reconstruction will be procured,
49
as far as possible, fi-om legal sources. Environmental issues f rom which negative impacts can be expected are divided into those which are: (i) localized/direct; and (ii) widespreadindirect.
Localizeddirect impacts are l ikely to include: 0
0
0
0
0
0
0
0
inappropriate siting (from an environmental and socio/cultural perspective, as wel l as possible future disaster events) ; inappropriate design and management o f associated surface water drainage; inappropriate design and management o f sanitation measures; improper design o f water supply systems; poor handling and disposal o f debris and rubble; poor onsite management and construction techniques; use o f hazardous construction materials (such as asbestos); and inappropriate sourcing o f sand, gravel, bricks and timber for reconstruction.
Widespreadindirect impacts may include: 0
0
0
excessive depletion o f natural resources (associated with procurement o f construction materials); cumulative/regional effects o f poor handling and disposal o f debris and rubble; and possible water resource impacts associated with over-extraction o f groundwater resources.
Direct impacts will be addressed via application o f suitable codes and practices to be included in the Project Operational Manual, including Ministry o f Public Works standards, as wel l as green reconstruction guidance being developed by UN-HABITAT. Effective application o f such standards wil l require provision o f training for the Housing Facilitators, KDPLJPP facilitators and other key members o f each community. A monitoring system to track the implementation o f the community settlement plans wil l also be built into the project. Community settlement plans will incorporate agreed environmental principles, such as commitments to use legally sourced timber.
Indirect impacts cannot be addressed at the level o f a single project and will require a coordinated approach involving al l key parties involved in Aceh reconstruction. For example, the issue o f unsustainably sourced timber i s already o f high visibility within government structures (national and local), the NGO community (national and local), and the donor community.
The Wor ld Bank will ensure that this project i s in line with broad-scale approaches that are currently being put in place at the level o f the BRR, UN-Joint Logistics Center, and the W W F - C I Timber for Aceh Program, to support the supply o f materials for Aceh reconstruction.
C.2 Social Issues Social issues pertaining to the rehabilitation and reconstruction works under the project are mainly related to the land titles. The main land issues identified so far are:
(i) Unidentified or abandoned site with unidentified land owners and/or owners are identified but died or vanished; Thousands o f people remain missing due to the tsunami. Some o f the survivors s t i l l live in the campsban-acks, or have moved to other regions. Most o f them intend to go back to their origins; however, the timing varies. Therefore, some people might not be present during the community mapping and the establishment o f beneficiary l i s t for shelter grants. Consequently, potential conflicts in the land claims and encroachment may arise in the later stage o f the project implementation. (ii) Loss/destruction of title documents/damages or loss of property records in the Office of National Land Agency (BPN); Large number o f property records were damaged or washed away due to the tsunami. Conflicts among the community members may also arise during the determination o f land p lo t boundaries because some are inundated or subsided, or because some o f the landowners are s t i l l missing or l ive in other places.
50
(iii) Land plots inundated and unsuitable for further development; Many areas, particularly those along the coastline, were washed away. Many pockets are s t i l l inundated and unsuitable for further development, in spite of people’s wishes to return to their original plots. (iv) Land formally squatted or rented, and totally destroyed; Many households were occupying someone else’s land prior to the tsunami, whether legally or illegally. (v) Renters who lost their houses; In addition to the above, there were households who were renters and lost their housing due to the tsunami. (vi) Inheritance issue; As many landowners are missing or s t i l l live in other places, a potential conflict may arise in determining eligible heirs to land ownership. There i s also a potential problem in defining the custody o f the land rights in the case o f heirs under the age o f 19. Another challenge i s in dealing with the tenure rights defined under the customary and traditional codes. Due to the traditional codes not defining clearly rights for the women to inherit land, a challenge will be how to ensure that female heads o f households retain the right to remain in their original areas.
D.
D.l Environmental Management Framework The Government o f Indonesia’s environmental review procedures are broadly consistent with those o f the Wor ld Bank, and will form the framework for the project’s approach to environmental screening and mitigation. The project i s considered to be equivalent to Wor ld Bank “Category B”; recognizing that a community based approached i s being applied and that most environmental impacts are l ikely to be localized, short term and reversible.
Environmental and Social Management Framework
For impacts that are acknowledged to be indirect, complex and cumulative, additional environmental analysis will be carried out during project implementation (see below for further justification o f this approach). Mit igat ion of such impacts wi l l involve a coordinated approach with a l l key parties involved in Aceh reconstruction.
(a) Screening criteria In line with past Wor ld Bank practice o f applying environmental safeguards to community based projects, each individual community settlement plan will be screened against existing GO1 criteria (see below) and classified into one o f the following categories:
Those requiring a full environmental assessment for which the Ministry o f Environment has established criteria - i t is unlikely that any of the community settlement plans wi l l require a full EA Those requiring an environmental management and monitoring plan (UKLRJPL) for which the Ministry o f Public Works has established criteria (see below)- i t is possible that a few community settlement plans may fall under this category Those for which standard operating procedures will suffice, together with training and monitoring support to ensure that the necessary guidance i s applied appropriately and consistently. The DG Human Settlements o f MPW can provide some guidance, which can also be supplemented with additional guidance provided by the Wor ld Bank. I t is expected that most community settlement plans w i l l fall under this category.
51
(b) Government of Indonesia Environmental Screening Criteria
Development o f n e w housing/settlement
o Metropoli tan city,
o B i g city, extent area o Med ium and small city,
extent area
extent area
Renovation o f housing/settlement
o Metropolitan and large
o M e d i u m c i t y o Re-establishment o f
pre-existing areas
city
2 25 ha
2 50 ha
2 100 ha
2 - <25 ha
2 - <50 ha
2 - <lo0 ha
2 1 ha
2 2 ha 2 1 ha
In addition, a ‘negative l i s t ’ approach will be applied to ensure that the following substances, materials and sub-project types are precluded from project funding:
0
0 Asbestos containing materials; 0
0
0
4
0
Pesticides, ozone-depleting substances, tobacco or tobacco products;
Sub-projects producing liquid or gaseous effluents and emissions, with the exception o f normal sanitation needs for individual households; Hazardous materials and wastes, including use, production, storage or generation o f hazardous wastes; Sub-projects or activities with the potential for significant conversion or degradation o f critical forest areas or related critical natural habitats (as defined in OP 4.36 on Forests); Mining or excavation o f l ive coral; and Construction o f water retaining structures or storage structures o f capacity greater than 10,000 cubic meters.
(c) Screening process The project will provide block grants (for tertiary infrastructure) and household level grants (for housing construction) based on the completion by each participating community o f a community settlement plan. These plans will be developed with the support o f District Management Consultant teams (DMCs) under the Project Implementation Unit, as wel l as KDP and UPP facilitators, in time handing over to housing facilitators to be recruited and trained during the init ial stages o f the project.
The community settlement plans will be developed for discrete areas within each kecamatan and kelurahan. Plans will include construction o f new houses and the rehabilitation o f damaged houses, depending on the degree o f destruction caused by the tsunami. Plans will provide detailed descriptions o f a l l activities proposed, including a minimum of:
0
0
Rehabilitation o f surface drainage networks, water supply and sanitation systems (tertiary level) Number and location o f houses to be constructedrehabilitated;
23 Decree o f the Ministry of State for Environment, N o 17/200 1 24 Decree o f the Minister o f Public Works, N o 1712003
52
0
0
0
Volume, type and specification o f materials needed for each house; Type and specification in terms o f water, sanitation and drainage requirements; and, Plans for safe disposal o f debris and rubble.
The Ministry o f Public Works will be responsible for environmental screening o f these plans, in coordination with local environmental authorities. The process will be supported by the District Management Consultant teams (DMCs) and housing/KDP/UPP facilitators, and will be l inked to the technical review and approval o f each community settlement plan. A Provincial Management Consultant (PMC) team located in the Project Management Unit (PMU) will include a complaints handling and safeguards specialist, who will provide additional guidance and support to the DMCs. In most cases, it i s l ikely that standard operating procedures only will need to be applied based on housing sector environmental guidelines (as further discussed below), including specific guidance o n green reconstruction materials being developed by UN-HABITAT.
The screening process will ensure that negative impacts are, as far as possible, avoided through appropriate siting and design measures, and that adequate mitigation measures are put in place for residual impacts. Standard clauses will be introduced into relevant project documentation describing required mitigation measures, simple indicators o f success and a monitoring plan. Each participating community wil l base i ts plans o n a set o f agreed environmental principles, including the use o f legally sourced timber. The Wor ld Bank will review o f sample o f these documents and may require corrective actions to be taken.
(d) With the exception o f a few impacts acknowledged to be wide scale and cumulative in nature, the environmental management process should consist largely o f verifying the inclusion o f appropriate standards in the project design and implementation documentation. Areas l ike ly to be more effectively covered through the development o f standards and codes include, but are not l imited to, the following:
Standards and codes of practice
0 Rubble/debris collections and disposal; 0
0
0
0
0
0
Guidelines for temporary shelter site dismantling and disposal; Site selection criteria for new housing settlements, including altemative analysis framework; Guidelines for new housing site clearing and preparation; Community environmental management plans for new settlements, including waste management practices; Good environmental practice in housing construction; and Good environmental practice in small-scale construction.
As indicated above, some o f this guidance i s available v ia the MPW, but supplementary guidance will also need to be included in the project operational manual and assembled at the level o f the local PIUs. The WWF principles on green reconstruction provide a useful basis. More operational level guidance designed for field-based managers and facilitators, particularly in the area o f construction materials, i s currently being prepared by UN-HABITAT.
Should this material fail to be developed in time to support project implementation, the Wor ld Bank will develop and apply i t s own guidance based o n applicable standards and practices drawn from other tsunami affected countries.
(e) Wider scale impacts associated with depletion o f natural resources and debris disposal, which are potentially more significant and long term, will require additional environmental analysis. The project wil l provide the necessary resources to ensure that expertise i s available to support implementation o f the study and required follow up actions. This study will be carried out during the early stages o f project
Indirect and cumulative environmental impacts
53
implementation, in parallel with the detailed design stage o f the project. Outline TORS are provided as Attachment 1.
One o f the key objectives o f the study will be to assess the l ikely scale and significance o f project impacts on local forest resources, taking into account the need for (potentially) large volumes o f timber for housing reconstruction. At present there are varying estimates o f the l ikely volumes that will be needed, which can only begin to be verified once the project becomes fully operational at the community level. At the same time, i t i s clear that there i s very limited legally sourced timber available locally, but an abundance o f i l legal timber.
The study will develop a more accurate profile o f l ikely demand for timber associated with the project, based on data derived from the f irst community settlement plans, disaggregated into annual estimates. I t will assess availability and supply trends in the local timber market (volumes, provenance, pricing and quality). It wil l evaluate the level and significance o f impacts o n the forest resource attributable to the project. It wil l then define a strategy for ensuring that sufficient volumes o f sustainable timber can be made available to project beneficiaries. The Strategy will be integrated with safeguards measures being taken at the community level to provide training to project facilitators in green construction standards and ensure that the Community Settlement Plans include agreed environmental principles.
The study will build o n demand side studies that have been carried out by FAO, WWF and others, as wel l as existing approaches to sourcing o f materials being applied by other donors involved in reconstruction activities (WFP, UN-HABITAT, IOM, Oxfam). I t will assess the impact, also, o f measures being taken by the UN Joint Logistics Center (JLC) and WWF’s Timber for Aceh Program to facilitate the efficient supply of construction materials (including sustainably sourced timber) into Aceh.
D.2 Social Safeguard and Resettlement Policy Framework
(a) Principles As stipulated in GOI’s Master plan, the project adheres to the general principle o f minimizing involuntary resettlement. The need for resettlement may arise for (i) residents residing o n land unsuitable for reconstruction; (ii) former tenants and squatters; and, (iii) internally displaced people (IDPs) who do not wish to return to original areas. In the event involuntary resettlement does occur, a Land Acquisition and Resettlement Policy Framework has been developed as part o f the SESAF in accordance with OP 4.12 to ensure application o f the appropriate safeguard policies. The project will maximize upon the community- based approach developed through ongoing KDP and UPP. The highly participatory nature o f the project, including community-based spatial and reconstruction planning, will ensure that communities are able to identify whether any proposed investments will have a negative impact on social safeguards, and if applicable, assign appropriate mitigation measures.
The “Comprehensive Human Settlements Rehabilitation and Reconstruction Strategy” prepared by the GO1 serves as a basis for a l l housing programs undertaken by various donors stipulates the principles o f promoting community-based approach and o f minimizing involuntary resettlement. In the Strategy, the affected communities are encouraged to explore viable alternatives to minimize displacement.
Following are the overriding principles o f how the project deals with the land issues:
0 Maximizing community consultation as a mechanism to clarify land tenure situation, resolve conflicts to minimize resettlement. The community proposing the settlement reconstruction will use a transparent and participatory process to ensure that al l eligible and affected persons agree on any option that involves land acquisition and resettlement, and agree o n the community mapping and the community settlement plan. The backbone o f the project design i s the community-driven development mechanism and it builds o n the experience o f KDP and UPP. I t i s assumed that this
54
built-in C D D mechanism will help the project affected population identify intra-community solutions in most cases. Sensitivity to the local culture and the traditional regulations where appropriate. Land acquisition and resettlement will take into account relevant local or traditional regulations/laws where appropriate, and this will be reflected during the community mapping and consultation process, community settlement plan and implementation mechanisms. Minimizing adverse impacts on assets. The GO1 ensures that n o real decline in income will take place because o f displacement and al l project affected persons will be compensated for their looses at replacement cost and provided with rehabilitation measures to assist them to improve, or at least maintain their pre-disaster living standards and income earning capacity.
0
0
(b) Land Acquisition and Resettlement At the appraisal stage, the project cannot identify the intensity o f the potential social issues and impacts that may arise during i t s preparation and implementation. N o r can the project assess the land acquisition and resettlement needed, as the size o f need o f the settlement reconstruction o f each community will be identified once the project starts on the ground. The need for land acquisition or for involuntary resettlement in specific housing reconstruction activities will only be known during project implementation, when site-specific plans are available. However, in case the need for land acquisition or for involuntary resettlement does occur, following provisions will apply:
(i) Any housing reconstruction activities involving involuntary resettlement or land acquisition o f more than 25 households or 200 persons will only be approved after the preparation by the District level Housing Coordination Committees o f a full Land Acquisition and Resettlement Act ion Plan (LARAP) acceptable to the Bank. Several issues are l ikely to increase the complexity o f land acquisition - the availability o f reliable land records, the inabil ity o f people to document ownership, the demise o f occupants and subsequent uncertainty about transfers o f title. LARAP should spel l out the GOI’s measures to implement the principles o f compensation and livelihood restoration for any Project Affected Person (PAP). This includes any person who, o n account o f the execution o f the Project, has experienced or would experience direct economic and social impacts caused by the involuntary taking o f land resulting in:
0
0
0
relocation or loss o f shelter; loss o f assets or access to assets; or loss of income sources or means o f livelihood, whether or not such person must move to another location, resulting in adverse impacts on the l ivelihood o f such person.
The Project Operational Manual will include procedures for identifying eligible project affected people, calculating and delivering compensation, and mechanisms for dealing with grievances. Whi le the detailed format o f the full LARAP will be provided in the Project Operational Manual, i t should cover essentially the following information:
Description o f proposed investments that require land; Information on the project affected persons; Policy on the land acquisition and resettlement; Procedures and requirements to acquire land and resettlement; Mechanisms for land compensation and resettlement; Consultation, disclosure and grievances mechanisms; Institutional arrangements; Financing sources; and, Time schedule for the implementation o f LARAP.
55
The D M C teams wil l ensure that the above LARAP spells out clearly the proposed actions for settlement reconstruction o f the affected communities. The DistricUCity Housing Coordination Committee will mediate the consultation with support o f the D M C teams. All the LARAPs need prior review and approval by the National Steering Committee for the project and the World Bank.
(ii) If the land i s acquired from less than 25 households/200 people (or about 40 private landowners), the fo l lowing steps wil l be followed:
The community or the local government that needs the land will negotiate with the private landowners. The agreement on the type and level o f compensation i s made through a participatory and transparent process. Agreement between the community or the local government and the private landowners will be incorporated in the community settlement plan, with clear land plots demarcation, type and amount o f compensation (if it i s in cash), the timing o f payment, and the funding sources for the compensation. Depending o n who obtains the land, compensation may be paid f rom funding f rom community and/or local govemment. If the local government acquires the land, there will be an agreement between it and the household beneficiaries o n the arrangement scheme o f the right o f use o f the land. This agreement wil l be incorporated in the community settlement plan, with clear land plot, arrangement o f the rights o f use, obligation o f the beneficiaries, and accompanied by a l i s t o f eligible beneficiaries. The agreement has to be verified by the village level facilitators o f K D P and UPP as wel l as housing facilitators and the DMC teams at the DistrictICity Housing Coordinating Committee. The agreement will be reached through a participatory and transparent process. Where voluntary contribution o f land or other assets are indicated, either in the new site or in the existing site whereby the reconstruction works will be located, there wi l l be a clear agreement between the contributors and the recipients, including the names, land plots with clear demarcation, and the details o f the terms o f the contributions. This agreement will be incorporated in the community settlement plan and verified by the facilitators and the D M C teams in the District/City Project Implementation Unit. The usage o f the contributed land will be defined through community consultation and be made transparent to the community. If the community or local government acquired land from private landowners through cash compensation or other compensation scheme, i t will be paid prior to the implementation o f the community settlement plan. The settlement reconstruction in the new sites will only be carried out once the community members agree o n the community settlement plan, the Wor ld Bank approves the p lan and compensation i s paid by the GOI.
Consultation and Disclosure
This environmental and safeguards framework has been discussed with BRR, MPW and other relevant authorities at the provincial and local government levels. The GO1 will disclose this fiamework in NAD Province. The Wor ld Bank will ensure that the framework i s published in the Infoshop and the Wor ld Bank Indonesia Public Information Center. The framework wil l be available also o n the E-Aceh website (http://www.e-aceh-org).
The project design embedded a community-based approach as a way to promote active participation and transparency in the decision-mahng processes at the community level. Community consultations at the village level (e.g., community forums, accountability meetings) will be the main platform for this approach. This includes the addressing o f the social issues/impacts that arise, identifying land owners and land plots, preparing the settlement plan, acquiring land and resettling people, and, preparing the settlement reconstruction sub-project proposal, as wel l as managing the construction o f housing and infrastructure. If households move to other sites, consultation with the host population will also be done to minimize potential negative impacts and future social disruptions.
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Processes o f acquiring land either by the community or the local government will also involve consultation with the landowners (private and public), facilitated by the DMCs. The maps o f the land plots and owners as wel l as the community settlement plan will also be disclosed to the public. The KERAP o f UPP and Community Forum o f K D P as well as the D M C s in the District Housing Coordinating Committee will ensure that the disclosure o f all agreements and documents will take place appropriately at the district level. The consultation process and the results agreed by the community members wil l be made available to the public through websites, meetings, newsletter, public postings, and other means.
During project preparation and implementation, i t i s important to have proper consultation and collaboration with other agencies/projects that support or complement the project. This includes the Steering Committee o f the Reconstruction of Aceh Land Administration System Project (RALAS) and the National as wel l as the Provincial Land Agency, the UPP and K D P and the BRR, plus other donor agencies and NGOs who are working in the housing sector and land inventory/mapping. At the provincial level, the project wi l l also coordinate with the “Sekretariat Bersama” o f the R A L A S project, situated at the Provincial Land Agency. The Project Operational Manual will provide the detailed mechanisms on the consultation and disclosure, which follow those o f the UPP and KDP.
F. Grievance Redressal Mechanisms
Each member o f the community has the right to fi le complaints should there be any concerns that remain unsolved during community consultations. Complaints can be conveyed in the form o f written documents, in person, through e-mail, media, etc. At the community level, complaints can be addressed to the UPP and KDP facilitators. If the problem can not be solved by the village level facilitators, then complaints should be conveyed to the Kecamatan Facilitators (in the case o f KDP)/City Coordinators (Korkot, in the case o f UPP) and to the D M C o f the District/City Project Implementation Unit. In consultation with the District/City Housing Committee, the D M C will respond to the complaints within a specific period o f time. Unresolved complaints at the city/district level will be brought to the Complaints Handling Unit at the Directorate o f Housing and Public Facilities under the BRR. All complaints and responses should be documented at the community, city/district and provincial level, in the respective Management Unit Offices. The Project Operational Manual will provide the detailed mechanisms on the complaints and grievance redressal, which fo l low those o f UPP and KDP.
G. Monitoring and Evaluation
G.l Environmental monitoring Field-based environmental monitoring will focus on the construction phase for each community settlement plan to ensure compliance with applicable codes and practices. Monitor ing will be the responsibility o f the MPW with support f rom the D M C s and f ie ld based facilitators. The Project Operational Manual will include a field-based environmental monitoring protocol to assist the process. Completed protocols will be summarized in bi-annual reports and used as an input to supervision missions.
T o provide further technical guidance, review and monitoring capacity, particularly during Year 1, the project will contract specialist social and environmental services to be located at the level o f the PMC and providing coverage for each o f the DMCs, as required. Inputs o f up to 16 weeks f rom an international specialist supported by 3 full time local environmental specialists are envisaged for Year 1 (this arrangement to be reviewed for subsequent years). Routine Wor ld Bank supervision missions will assess the overall implementation o f the framework and, if required, recommend additional support.
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G.2 Social monitoring Monitor ing and evaluation will be done to ensure that the social issues and impacts have been addressed properly and in a participatory, fair, and transparent manner, in particular where land acquisition and resettlement processes take place. The housing facilitators, together with the UPP and K D P facilitators, wi l l carry out datahnformation collection to monitor the progress and impacts. At the CityiDistrict level, the D M C in the District/City P I U wil l consolidate the information collected by the facilitators and provide necessary fo l low upiinterventions based on the assessment o f the consolidated data.
Continuous Social Impact Assessment In order to ensure that social issues are addressed and social impacts are minimized, the project will undertake a Continuous Social Impact Assessment (CSIA, see Annex F on Monitoring and Evaluation) starting during the community preparation until completion o f project implementation. The mechanisms and format o f the CSIA i s provided in the Project Operational Manual. The CSIA i s prepared by an independent team assisted by the housing facilitators and closely collaborate with the village facilitators of KDP and UPP. Volunteers o f K D P and UPP and in each kelurahan/village wil l also assist the independent team. The District Management Consultant in the District/City Project Implementation Unit wil l supervise the preparation and the implementation o f the recommendation o f the S I A .
H. Implementing Institutions and Capacity Building Under the overall coordination by the BRR, at the districucity and villageiward levels, each project implementing enti ty (PMU, PW, KPs) i s expected to take responsibility in ensuring that this framework i s supported, The key tasks, responsibilities and related management actions required in supporting the framework are listed in the following table:
Tasks I Responsibil i ty I Requi red actions
Env i ronmen ta l Safeguards Measures Community level awareness raising in green reconstruction standards
Technical training for Project staff, facilitators, Dinas P U and Dinas Lingkungan in environmental screening and mitigation Environmental screening of community settlement plans
Application o f environmental codes and practices to community settlement plans
Environmental monitoring (construction phase)
D M C environmental specialists, Project facilitators
D M C engineering and environmental specialists
Project Manager (PIU), Local environmental authorities Project Manager (PIU), DMC environmental specialists, Wor ld Bank Jakarta Off ice
Project facilitators, DMC environmental specialists, W o r l d Bank Off ice Jakarta
-General awareness raising to be provided to the community based on UN Habitat green construction guidance (to be developed) -Training to be provided based o n MPW Standard Operating Procedures together with UN HABITAT green construction guidance (to be developed)
-Each community settlement p lan to be screening according to screening procedure set out in this document -Prior t o approval o f community settlement plans, the P I U Project Manager wil l ensure that relevant M P W and other environmental guidelines are applied, and that sufficient mit igation and monitoring i s included for any residual impacts. -The DMC environmental specialist (and W o r l d Bank Off ice Jakarta) wil l review a sample o f these plans and may require corrective actions to b e taken. -Completion o f 3-monthly monitoring protocols to be included in quarterly project reports. Corrective actions to be documented.
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Environmental monitoring (longer term)
I community. Social Safeguard Measures
Beneficiaries -Environmental monitoring against basic indicators to be gradually transferred to the
Compensation
Preparation and monitoring o f continuous S I A (CSIA)
Preparation and monitoring o f L A R A P for land obtained by community
Preparation, implementation and monitoring o f L A R A P for land obtained by local government
Preparation and implementation o f the Community Settlement Plan (CSP)
GO1 (districtlcity and central government)
Independent (consultant) team assisted by the facilitator and volunteers DMCs wil l monitor the implementation o f CSIA
Preparation o f L A R A P will be done by the KERAPiTPK assisted by facilitators and volunteers. DMCs monitor the implementation o f the LAMP. Preparation o f L A R A P will be zarried out by the Project [mplementation Unit with the assistance o f DMCs PMU/PMC will monitor the implementation o f L A M P The K E R A P and T P K will prepare the CSP; the PIUDMC will monitor the ?reparation and implementation o f the CSP
-Preparation o f LARAP by the D M C . -Prior review o f L A R A P (less than 25 households/200 persons/40 private owners) by the District-level housing committee. -Prior review o f full L A R A P (more than 25 households/200 persons) by National Housing Coordination Committee. -Request counterpart f inancing for land acquisition and monetary compensation. -Identify available public land for compensation and additional land to purchase for compensation. -DMCs and the independent (consultant) team provide guidance and training to the facilitators/volunteers pr ior t o the preparation o f the Community Settlement Plan after the K E R A P in UPP or the TPK in K D P i s established. -DMCs wi l l provide guidance and training to the KERAP/TPK, facilitators and volunteers prior to the preparation o f the community settlement plan.
-PMU/PMC will provide guidance and training for the PIUs and DMCs as we l l as facilitators at the earliest stage.
-The PIU/DMC wil l provide guidance and training for the K E R A P and TPK, as we l l as for facilitators at the earliest stage
The project will deliver practical guidance and training to the level o f the DMC-PrUs and the community in application o f this safeguards framework. Training wil l be provided for: key community members, a l l field level facilitators, a l l PIU staff members, Dinas PU, and Dinas Lingkungan staff. Given that 300 housing facilitators will need to be recruited during year 1 o f the project, the ro l l ing program o f training will be required with events scheduled every 2-3 months.
The main capacity needs and related budget items required to support implementation o f this framework are provided in the following table.
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Item Environmental Environmental management I International environmental 1 -20 weeks during year 1. T o be
Needs Indicative budget
support to PIUs (includes development o f training materials and delivery o f training to P I U staff
specialist supporting the PMU National environmental
reviewed for years 2 and 3
-3 specialists (full time) during and project facilitators) I specialists supporting the 1 year 1. T o be reviewed for years 2
1 International and 1 national EIA specialist; 1 International and 1 local
I 1 o c a l ~ I U s I and3 I Project facilitators Community awareness in green I T o be included in their TORS
-8 weeks international specialist. -12 weeks national specialist. -6 weeks international specialist.
construction standards Environmental study o n indirect and cumulative project impacts
forestry resource management specialist
-12 weeks national specialist.
Social Preparation and monitoring o f continuous SIA, including training materials and awareness to potential social issues
Preparation o f LARAP, including training materials for land acquisition and resettlement
Preparation o f Community Settlement Plan (CSP) including training for preparing the CSP
A Social expert at the PMU/PMC and at the P I U D M C
A Social or land acquisition and resettlement expert at P I U D M C and P M U i P M C
An urban planner and community dev’t specialist at the P I U D M C and P M U P M C
-The DMC will monitor the preparation and implementation o f the recommendation o f the CSIA with the assistance o f the K a b K o t a Coordinators and Facilitators. Depending o n the intensity and seriousness o f the social issues, the Kab/Kota coordinators may be assisted by junior social experts. Each expert may cover 10-15 villages / kelurahans. -For PMUPMC and PIUDMC, a ful l t ime Social expert each i s needed for the whole Proiect preparation and implementation -The DMC will monitor the L A R A P implementation with the assistance o f the K a b K o t a Coordinators and Facilitators. Depending o n the intensity and seriousness o f the land acquisition and resettlement issues, the K a b K o t a coordinators may be assisted by jun ior land acquisition and resettlement experts. Each expert may cover 10- 15 villages/kelurahans.
The P M U P M C and P I U D M C need a land acquisition and resettlement expert each, for at least during the project preparation and f i r s t year o f project implementation. The assignment o f the expert may be extended in accordance with the need -The P I U D M C and P M U P M C need an urban planner and community dev’t specialist at least during the project preparation and
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Preparation o f L a n d An expert o f land mapping in inventorylmapping the P I U P M C and P M U P M C
; A field land mapping expert i s needed to guidance and
1 weeks.
f i rst year o f project implementation. The assignment o f the expert may be extended in accordance with the need. -The DMC will monitor the preparation and implementation o f the CSP with the assistance o f the K a b K o t a Coordinators and Facilitators.
-The number o f f ield land mapping experts needed will depend o n the size o f a particular villagelkelurahan, and the land
supervise the mapping in each village, and may collaborate with the R A L A S Project
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inventoryhapping activities that have been done by other parties. -Expert for each villagelkelurahan wi l l be needed for at least 12
Attachment 1
Outline TORS for an Environmental Study on Indirect and Cumulative impacts associated with the I D A settlement rehabilitation and reconstruction project in Aceh
Introduction The Aceh reconstruction process requires the building and rehabilitation o f tens o f thousands o f housing units over the next 2-3 years. This effort will place a significant burden on already highly stressed natural resource conditions across the province. Particular areas o f concern include the sourcing o f construction materials, water supply requirements, and the clearance and safe disposal o f rubble and other tsunami related debris.
This study will evaluate the level and scale o f widespread and cumulative impacts associated with the IDA’S housing reconstruction project in Aceh, and design appropriate mitigation in line with Government of Indonesia environmental laws and standards, as wel l as those o f the IDA. The study will be carried out during the early stages of project implementation, in view o f pressing needs to progress housing reconstruction in Aceh.
Key Tasks
Task 1 : identify key indirect and cumulative type impacts.
Task 2: for each impact area assess baseline environmental conditions,
Task 3: for each impact area, define level and scale o f impact attributable to the IDA housing reconstruction project.
Task 4: for each impact area, define and assess environmental mitigation alternatives.
Task 5: develop operational environmental management plan for the IDA housing reconstruction project.
The Consulting team The team wil l be lead by an international environmental management specialist with over 10 years experience in EIA, supported by an international forest resource management specialist. International specialists will be supported with suitably qualified Acehnese consultants. The team wil l be based in Aceh for the duration o f the study.
Timing and Resources The study will carried out during the f i r s t 4 months o f project implementation. The results of the study will in form the IDA’S f i r s t supervision mission. The study will require 14 weeks o f international specialist input and 24 weeks o f national specialist input.
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ANNEX H: ANTI-CORRUPTION ACTION PLAN
Executive S u m m a r y The primary objectives of this Anti-Corruption Action Plan are to identify corruption r isks and mitigation measures beyond the standard control systems employed by the IDA. Further program-specific control systems are outlined in the Financial Management & Disbursement Arrangements and in the Procurement Arrangements annexes. This Act ion Plan: (i) maps potential risks o f corruption; and (ii) presents program activities to address these r isks in the form o f an Action Plan.
The project follows a learning approach, and implementation experiences will be continually incorporated into the implementation processes. The Anti-Corruption Action Plan should therefore be seen as a starting point and not an all-inclusive l i s t o f mitigation measures. This learning approach i s especially important in the reconstruction o f the post-tsunami and post-earthquake areas o f Aceh and northern Sumatra, where there are both multiple problems and needs, yet at the same time weakened local government and complex lines of coordination between government and non-government agencies.
Cor rup t i on Mapping. The matrix included in this action plan identifies some potential r isks o f corruption and specifies some appropriate mitigation measures that have been agreed to by the Implementing Agency of the Government o f Indonesia, 9.9. BRR (Badan Pelaksana Rekonstruksi dan Rehabilitasi NAD and Nias) and the Executing Agency o f the Government o f Indonesia, 9.9. The Ministry o f Public Works - (MPW). The mapping exercise will be repeated twice during the lifetime o f the project to incorporate innovations and lessons learned.
The Act ion Plan. The anti-corruption strategy has been developed around the premise that the project will be built upon two established Government o f Indonesia Community Dr iven Development programs: The Urban Poverty Program (UPP) and the Kecamatan Development Program (KDP, the rural sister project to UPP), For the sake o f this anti-corruption plan, the project activities can be seen to fall into two distinct sets: the f i rst i s the procurement, mobilization and management o f supporting consultant services at the provincial and national levels, and the second i s the community level activities themselves.
Communitv level uarticiuation and empowerment are crucial to the success o f the project as a whole. These wil l draw heavily o n experience from the UPP and KDP projects, using established village and sub-district mechanisms wherever possible. Together, these factors will inspire greater accountability and better governance. This project empowers groups at the village” level to officially manage the distribution o f standard housing grants among group members, and together mobil ize other available local resources. These groups, assisted by trained facilitators and engineers, will be responsible for the technical quality o f their own housing. I t i s in the long term self interest o f the group members to make the best possible use o f the available resources. The design o f the project incorporates careful socialization and transparent management techniques that help to ensure the necessary participation and empowerment.
In relation to corruption, there are three main risk areas involved in this project. The f irst group o f r i sks i s to be found in the transfer o f funds from national level to end-user. The second group relates to the multiple risks o f coercion at the local level. And the third group of risks relates to procurement, particularly of consultant services.
The streamlined and participative processes adapted from KDP and UPP are expected to greatly reduce risks related to getting funds to the groups that need them. Nevertheless, the post-disaster area does present a unique set o f challenges that must not be underestimated. The project recognizes this problem and will not only adopt the mitigation measures already developed under UPP and KDP, but also ensure
Urban villages (kelurahan) and rural villages (desa). 25
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more frequent monitoring and supervision activities to further reduce associated risks. Taken together, these measures are deemed to greatly reduce the overall level o f risk. Further, because grant amounts are known at the group level, the likelihood i s h igh that individuals wi l l use the project’s complaint mechanisms if their entitlements are delayed or subjected to deductions.
The r isks related to coercion at the local level range from mild to very serious. At the lower end o f the spectrum, i t i s possible that well-meaning engineers might try to coerce villagers to use contractors to undertake works that the villagers would prefer to do themselves. These types o f r isks are greatly reduced through open dialogues at the village level and clear mechanisms for getting ‘second opinions’ f rom higher levels o f project management. The more serious r isks include the threat o f physical violence from armed factions who may seek to influence decisions, or even steal the grants. T o offset these latter r i sks the grant disbursement mechanisms will allow for multiple withdrawals at bank branches nearest to the material suppliers chosen by the villagers. In other words, there will not be a need for large sums o f cash to be carried f rom place to place. Again, the collective decision-making and management processes are perceived to offer the best protection against abuse.
Close supervision and rigid enforcement o f the rules governing procurement and financial management at the national, province and district levels o f the project will help to ensure that contracts at those levels wil l not be fraught with problems. C iv i l society oversight o f project processes should provide additional security in procurement and implementation activities.
Some o f the most important aspects o f the anti-corruption action plan can be summarized into the five key elements that follow. Underpinning each o f these elements i s the careful consultative process that ensures participation and empowerment.
A. Enhanced Disclosure Provisions and Transparency The project will simplify disclosed materials and make them readily available to the public. Specific disclosure measures related to information at the national, province and district levels will include, but not be l imited to:
Public disclosure o f annual procurement plans and schedules (and their updates), bidding documents and requests for proposals.
Disclosure to al l bidders o f the summary o f the evaluation and comparison o f bids, proposals, offers, and quotations, after the successful bidder i s notified.
All bidding documents will be made publicly available in accordance with Wor ld Bank procurement guidelines.
All short l i s t s o f consultants wi l l be made publicly available in accordance with Wor ld Bank consultant guidelines.
The summary o f the evaluation o f a l l bids will be available to al l bidders and parties submitting proposals for specific contracts, promptly after the notification o f award to the successful bidder.
All bid openings will be public.
Representatives o f the end-users o f the goods or works being procured at the District or Provincial level will be able to attend the public bid openings.
All information regarding contracts awarded will be publicly disclosed.
Disclosure o f audit reports and mid-term review.
Public information centers established in relation to the Aceh reconstruction effort will be fully utilized to ensure that the simplified information i s available to beneficiaries.
In relation to transactions undertaken at the individual and group levels, salient information will be made readily available to communities by a range o f means, including routine public accountability meetings and notice boards. Project facilitators will check on a regular basis that such information i s being shared
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in appropriate ways. Failure to disseminate information may result in suspension o f funding to a given group (KP) or village.
B. Civil Society Oversight The program recognizes that greater oversight by c iv i l society i s l ikely to reduce the r i s k o f corruption and misuse o f power. The program involves a high degree o f formal participation by community groups within the areas o f beneficiaries, the private sector, and traditionalladat and religious leaders, through the monitoring o f the projectslend results, memberships o f the tender committee, and the evaluation o f the quality o f delivery procured services/products.
Existing NGOs and other c iv i l society organizations will be involved in a variety o f ways, inter alia: i) through participation in workshops; ii) as key resource persons for the development and strengthening o f groups where possible; iii) as evaluators o n an ad-hoc basis, possibly with some hired under contract for routine monitoring and/or specific studies; and iv) as training providers in particular sk i l l areas.
Opportunities will be given for CSOs to become involved in supervision missions.
C. Mitigating Collusion, Fraud & Forgery Opportunity for collusion and fraud exist in any project. However, due to the participatory, transparent nature o f the project, many o f the possible r isks are significantly reduced. There i s a risk o f forgery o f (a) documents certifying completion o f work, and (b) contractor invoices and reimbursable expenditure by consultants. Mitigation will be through requirements for stronger documentary trails, use for formal vendor invoices for reimbursement claims, requiring extensive pre-audits by BPKP o n eligibil i ty and completion o f construction, and certification o f completion by community groups also before payments are released. Transparent, well-advertised procurement under the program with appropriate oversight i s the starting point for reducing the likelihood o f collusion. Additional auditing and procurement procedures are proposed, such as oversight by technical assistance and capacity building. Performance o f the project consultants/contractors/suppliers will be monitored and evaluated by government (BRR, MPW) as wel l as by c iv i l society. Government assessments o f performance will be circulated to the relevant technical parties. Cases o f collusion, fraud and forgery within the government will be reported directly to the authorized agency mandated under the Indonesian law, which i s the attorney general office and the Anti-Corruption Commission. In the case o f collusion, fraud and forgery within the community, the cases will f i rst be reported, discussed, and decided at community level meetings (Rembug Warga) prior to their submission to the relevant authorities, Experience in other C D D projects indicates that many r isks can be mitigated by the threat and use o f community-based sanctions such as those used under UPP and KDP.
D. Complaints Handling Mechanism Complaint handling procedures as defined in Keppres 80/2003, will be strictly followed by assigning authorized officials to be responsible for maintaining a database o f complaints and the fol low up actions. Whi le the program i s designed to encourage local complaints resolution, in some cases local elites might s t i l l try to misuse power and program activities; so, it i s important to be able to access a more central complaints handling system. A special unit designated for handling o f complaints will be set up by BRR for al l related reconstruction activities, including but not l imited to this housing project. This unit may investigate and facilitate the resolution o f complaints and problems deemed within the mandate o f BRR, but in most cases the problems wil l be referred back to the relevant agency. The database o f complaints, follow-up actions being taken, and sanctions applied will be publicized to increase participants’ involvement and to increase the l ikelihood o f their lodging protests, thereby raising the social costs o f misuse o f funds. BRR and MPW will endeavor to ensure that complaints will be resolved in a professional and timely fashion, and without r i s k o f reprisal to ‘whistleblowers’ in the public. All o f the village level sigdinformation boards will provide details o f the project and BRR’s complaint handling unit mailing addresses.
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E. Sanctions & Remedies Clear sanctions and remedies are important final steps in the effort to fight corruption. This project will endeavor to apply a zero tolerance policy to corruption, as do the UPP and KDP. Communities are encouraged to impose reasonable, effective sanctions on citizens who abuse the power that has been entrusted to them. There i s an increasing wealth o f anecdotal evidence suggesting that such sanctions can be more easily applied and more effective than protracted legal proceedings, especially in cases o f minor abuse. The project does not endorse vigilantism or extreme community sanctions. Formal sanctions may also be applied. For example, any official (government or non-government), community member, or private sector entity participating in the project can be prosecuted if the cases warrants and sufficient evidence i s available. In a l l procurement contracts, evidence o f corruption, collusion or nepotism will result in termination o f the relevant contract, possibly with additional penalties imposed (such as fines, blacklisting, etc.) in accordance with IDA and GO1 regulations. Transfers o f funds into specific village or group level accounts will be suspended in cases where significant misuse o f funds i s suspected. Larger rural or urban areas may be subject to suspension or cancellation o f assistance if misuse o f funds i s suspected to occur widely in the respective and n o appropriate action i s taken to rectify the situation. Information regarding successful cases, where lessons are learned and funds are retrieved, will be widely disseminated.
Corruption Mapping Matrix Limiting the occurrence o f corruption in this project starts with identifying potential risk areas -this i s called corruption mapping. This exercise wi l l be repeated at least every six months as the project progresses and lessons are learned.
Corruption Mapping Area
PROCUREMENT Capacity o f the P IMPRO and TenderlEvaluation Committee
Proposal evaluation
Level o f Risk
high (Central)
MEDIUM
Opportunity for Corruption
Non-independent judgment o f the consultant evaluation process. The decisions tend to bias towards consultants as “instructed” by the higher-level officials or other parties.
-Delay in evaluation process that would benefit exclusive consultants - Proposals are rejected due to reasons unrelated to the capacity o f consultants in canying out o f the contractslservices - Significantly high technical scores
Mitigation Action
- Independent professionals included as part o f the consultants’ proposal evaluation team - Capacity building for a l l actors involved in procurement, including certif ication o f staff in accordance with Keppres 8012003 - Development o f Project Management Manual to streamline a l l procedures and sanctiodcomplaint handling mechanism
- The Procurement Plan, with detailed timeline, wil l be binding in the Legal Agreement, and will set as the basis for any procurement actions. - The IDA would declare m i s - procurement for any unjustif ied extension o f val idi ty o f proposals - QCBS procedures with budget ceil ing wil l b e fol lowed
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Quality o f delivered services
Procurement Planning, including the one for the sub projects
Overall Procurement
I
high
high
HIGH
HIGH
allocated to the “preferred” consultants such that no other consultants can effectively beat their proposals regardless o f the prices, which could result to significantly high prices - False information about the information provided by the consultants
- The committee may call the prospective winner and negotiate the contract amount - Collusion and nepotism in awarding the contract - The delivered services are o f lower quality than the ones specified in the TOR, and the officials may take kickback through the difference - Significant changes o f key staff o f consultants at the early stage o f the assignment - Intentionally l o w quality o f supervision o f contracts, and kickback f r o m the consultants
Risk o f kickback, and budget markup
Risk o f kickback, collusive practices to “award” the contract to “preferred” consultants, and lower quality o f services
- The estimated budget for each contract package wil l be based o n actual experience
- The TOR will be designed to be quite r i g id
- Mandatory disclosure o f contract awards
-Involvement o f c i v i l society oversight and supervisory consultants in the inspection o f the delivered services - Enhanced complaint handling mechanism - Involvement o f community groups in monitoring the quality o f the consultants’ deliverables - Enforce reward punishment system as defined in Keppres 80/2003
Mandatory review by the IDA o f Procurement Planning, and disclosure o f Procurement Plan in public domain, including disclosing the contract amount
- Enhanced disclosure, complaint handling, and sanctions as defined in Keppres 80/2003 - Enhanced capacity for the officials involved in procurement decision, including hir ing o f consultants - Enhanced the control system (internal and external)
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c MANAGEMENT I The final l i s t o f P M U and
PIU staff with their (i) experiences in handling donor financing project and (ii) history o f project management and or treasury training taken
Publication o f a l l Audit Reports and release into the public domain Publication.
Mechanisms
MEDIUM
MEDIUM
MEDIUM
- Risk o f weak capacity (e.g. lack o f familiarity with IDA procedures, lack o f managing the project o f a similar scale) o f P M U and PIU staff.
Risk o f unavailabil ity o f information o n the progress and result o f project implementation
Lack o f local experience may result in communities overlooking cases o f abuse.
including involvement o f professional members o f c i v i l society in the procurement decision actions - Development o f Project Manuals - Tighten IDA supervision
The criteria and performance ndicators o f Project Manager, rreasurer, planning staff, Irocurement staff, financial itaff and monitoring & :valuation. Staff o f CPMU, 'MU and P I U agreed by the DA have been incorporated in he P M M and wil l be used as he basis o f the annual )erformance review o f the .elevant staff I Requirement o f P O M as a
guideline for project implementation.
- Requirement o f Government Project Management, Treasury and P O M training for CPMU, PMU and PIU staff.
- Annual Training agreed by the IDA o n CPMU, P M U and P I U staff.
The implementing agency wil l (and the IDA can) make publicly available promptly after receipt o f f inal audit reports prepared in accordance with the loadcredit agreement, and a l l formal response o f the government The project design includes oversight and supervision to minimize risks.
Meetings wil l be held regularly at the vil lage and sub-village levels to make collective decisions o n strategic issues, and to review the use o f funds.
Local accountants wil l audit finances each year.
Audit results wil l be reported
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COMMUNITY PARTICIPATION Limi ted dissemination of information related to the Program
Selection o f KERAP/UPK members
LOW
LOW
Information i s kept l imited to certain circulation or group o f people only such that non qualif ied proposals could b e Expected
Von transparent xocess o f I E R A P I T P K
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to the community at the relevant accountability meeting. Ideally, each sub district should be visited at least twice by the PMC, and in each o f these a sample group o f villages should be singled out for quality control purposes.
In order to enhance the quality o f consultants ’ supervision under the project, facilitators are required to regularly check the community level books. They wil l also need to sign and f i le a “representation statement” regularly, confirming that they have checked the books and found them satisfactory. The consultants at higher level would randomly check the facilitators’ statements and wil l also be required to sign and f i le similar representation statements. A mechanism for checking and applying sanctions wil l be developed for those filing false statements (sanctions may include j o b separation).
Socialization wi l l be carried out through meetings, workshops and focus group discussions at the various project levels (province, district, village). I t will also include a campaign through newspaper spots and radio programs. The socialization strategy i s geared towards making communities aware o f the project’s goals, and i t s rules and regulations. These are aimed to ensure that stakeholders k n o w what their respective roles and responsibilities are, and h o w to h o l d each other accountable for their actions. The selection process o f members o f the community groups that oversee the project
Channeling o f funds
Implementation o f the sub project investments
MEDIUM
MEDIUM
members which result to l o w integrity
K i c k backs for the government officials
Misuse o f f i nds at the community level
:KERAP for UPP and T P K for KDP) wil l be conducted through a transparent and fair zlection process, with significant participation f rom the members o f the Zommunity Funds are transferred directly to accounts controlled by beneficiaries. Once the beneficiaries fulfill the draw down conditions, fol lowing a request f r o m the PJOK (after verification by the Distr ict Management Consultants), the finds are remitted available within a few days.
The procedures, size and criteria for defining grants, eligibility criteria for beneficiaries, and conditions for draw down are a l l simplif ied and defined upfront to ensure that stakeholders can easily understand them All financial information i s made public and displayed in at the community level.
Minutes o f a l l meetings, monthly financial status, and names and amounts o f f i nded proposals are posted o n signboards at the community level. Discretion o f actors i s l imited by setting rules that a l l financial transactions require at least three signatures, two f rom project-related representatives elected by the community and one f r o m the project's consultant'facilitation team. Addit ional procurement requirements are enforced for substantial purchases (as detailed in the procurement annex). Local accountants wil l audit finances. Audit results will be reported to the community at t accountability meetings .
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ANNEX I: PROCUREMENT
Procurement Implementat ion Arrangements. The selection o f all consultant services for the project i s the responsibility o f the Directorate General (DG) o f Human Settlements at the Ministry o f Public Works. The procurement o f works for settlement construction i s the responsibility o f the Community Groups (KP) or a group o f several KPs. For the procurement involving the community, the main challenge i s to have a “contract” with community for the delivery o f certain outputs/products based on the agreed lump sum amount and the technical specifications, with a control mechanism. The control mechanism from within the community for procurement processes (as currently applied under UPP and KDP) will be included in the project Operational Manuals.
Procurement Arrangements. Procurement for the proposed project would be carried out in accordance with the Wor ld Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits” dated M a y 2004; “Guidelines: Selection and Employment o f Consultants by IDA Borrowers” dated M a y 2004; and, the provisions stipulated in the Multi Donor Trust Fund (MDTF) and the Chi ld TF Agreements. The various items under different expenditure categories are described in general below. For each contract to be financed by MDTF and the Child TF, the different procurement methods or consultant selection methods, estimated costs, pr ior review requirements, and time frame, are defined in the Procurement Plan. The Procurement Plan will be updated annually, or as required, to reflect the actual project implementation needs and improvements in institutional capacity.
Procurement of Works. Works procured under this project would include rehabilitation and reconstruction works o f approximately 25,000 houses and tertiary infrastructure. Community groups will receive community grants for an amount o f Rp 28.8 mi l l ion per house (USS3,OOO equivalent) to be rebuilt, and Rp 10 mi l l ion per house to be renovated. There will be subproject agreements between the community groups and the Govemment o f Indonesia through the PJOK. The standard form o f subproject agreement will be found in the project Operational Manual and will include information on: (i) the total amount o f community grants; and (ii) the implementation schedule and the number o f houses to be delivered by the particular K P by the end o f contract period.
Works may be conducted through contributions f rom communities, which may be in the form o f labor and materials. In this case, the procedures will be in accordance with paragraph 3.17 o f the Procurement Guidelines on “Community Participation in Procurement”. For contribution o f labor, communities may choose to include full or partial labor cost in the proposals and/or pay salaries for work done on the project. Construction using a labor-intensive arrangement with community members i s subject to the fol lowing provisions:
0
0
The architectural plans and engineering designs shall be acceptable to Govemment regulations and standards. The implementatiodsubproject agreement covering these works shall include the following: (i) specified lump-sum, fixed price amount based on a written estimate o f work to be rendered by identified laborers f rom the community; and (ii) description in reasonable detail, including basic specifications, estimated completion date, and relevant drawings where applicable.
In areas where the community does not have the capacity to construct works themselves, or where the community groups so decide, the community may (with GO1 pr ior agreement as established in the subproject implementation agreement) choose to hire contractors to build the houses. In this case, the procedures will be in accordance with paragraph 3.5 o f the Procurement Guidelines (Shopping method). These contracts will be contracted under lump sum, f ixed price contracts awarded o n the basis o f quotations obtained from three qualified contractors in response to a written invitation. The invitation includes basic specifications, required start and completion dates, an agreement format acceptable to the IDA, and relevant drawings. The award will be made to the contractor who offers the lowest price quotation for the works. No restriction on participation in the bidding i s allowed. T o enhance
71
transparency, the l i s t of vendors and their corresponding committedpaid amount wi l l be disclosed in the public domain, at least on the information board and in the public accountability meetings.
The District Management Consultant teams (DMCs) on behalf o f the Ministry o f Public WorkdGOI), through the community facilitators, will always be consulted to ensure smooth construction processes in the field. This includes but i s not l imited to: (i) simple hazard-resistant housing engineering design & lay out, (ii) determination o f hiring or not hiring contractors, (iii) determination o f the housing contract packages to be built by particular contractors, and (iv) the hazard-resistant construction methods to be implemented in the field. The project Operational Manual will provide additional detailed procedures regarding this matter.
Selection o f Consultants. The project wi l l require consultant services for the following: 0 A team o f local consultants, as “bridging consultants”, for assisting GO1 in the overall preparation o f
the project, including preparing the design o f the construction works. T h i s will be funded through reallocation o f funds from UPP2 at the request o f GOI. Subject to satisfactory performance, GO1 may extend their involvement during the implementation o f the project; An Advisory team o f Individual Consultants, to (a) provide support to the BRR (the Government’s Implementation Body for Aceh Reconstruction and Rehabilitation) particularly on developing policy and supervising housing development; A Provincial management consultant, to manage and coordinate District Management Consultants; Four District Management Consultant teams (DMC). Each D M C will cover 4 district governments per D M C team; and Monitoring evaluation consultants wi l l be hired intermittently throughout project duration.
0
0
0
0
Firms. All contracts for f i rms would be procured using Quality and Cost Based Selection (QCBS) except for contracts estimated to cost US$lOO,OOO equivalent or less that would be procured using selection based o n Consultants’ Qualifications (CQ).Short l is ts composed entirely o f national consultants: Short l i s t s o f consultants for services estimated to cost less than US$400,000 equivalent per contract may be composed entirely o f qualified national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines.
Individual Consultants. Specialized advisory services would be provided by individual consultants selected by comparison o f qualifications o f three candidates and hired in accordance with the provisions o f paragraphs 5.1 through 5.3 o f the Consultant guidelines.
With GOI’s request, retroactive financing o f US$5 mi l l ion i s also included for consulting services to accelerate the project launch.
Sing’te Source Selection. Consultancy services which demand qualifications unique to the community participatory nature o f the project which i s closely related to the expertise o f the on-going CDD projects (UPP and KDP) including recruitment o f housing facilitators and community mapping and services that require urgent mobilization in the project’s emergency context (i.e., “Bridging Consultants”), Single Source Selection will be applied. All single source selections above US$50,000 will be subject to prior review.
Goods, In anticipation o f the need o f immediate good purchases that may be required during the rehabilitation period, Direct Contracting, as defined in para. 3.6 o f the Procurement Guidelines may be applied. Per contract amount will be n o more than US$50,000 with aggregate o f US$500,000.
Other. The procurement management, reporting, procedures, and SBDs to be used for each procurement method, as wel l as model contracts for works and goods procured, are included in the project Operational Manual satisfactory to the IDA.
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Assessment of the agency’s capacity to implement procurement. The executing agency for the project i s the DG Human Settlements o f the Ministry o f Public Works. This agency will be responsible for a l l consultants procurement work.
The last CPAR for Indonesia was carried out in February 2000, with the final report issued in February 2001, after which a new Keppres 80/2003 was issued to replace Keppres 18/2000. The detailed comparison and update between the two Keppres was provided separately in the Procurement Capacity Assessment Report (PCAR), which was conducted particularly for this project. However, i t was observed that the new Keppres provides a greater basis for an open and competitive procurement process, with clear sanctions mechanisms and disclosure requirements.
The executing agency i s familiar with Wor ld Bank - financed projects, and therefore, it has the capacity to carry out procurement following Wor ld BankA Procurement/Consultant Guidelines. However, the reputation o f the agency, coupled with the systemic corruption environment throughout the country, as well as the large amount o f rapid procurement involved in the Aceh operation, put the procurement risk high, The fol lowing actions will be conducted to mitigate the procurement risks:
All information related to the contracts (at least the name o f contractors, the nature o f the contract, and the contract amount), the performance o f the contractors, as wel l as the sanctions will be publicized on the e-Aceh website (http://www,e-aceh,org). A project Operational Manual (POM) will be developed pr ior to negotiation. The P O M should include, but not be l imited to, a l l applicable procurement, procedures, and monitoring and reporting requirements under the, project. A training program o n the Project Manuals, including o n procurement, for a l l project actors will be developed and agreed with the IDA prior to effectiveness. An Evaluation Committee, comprising qualified members acceptable to the IDA, will be formed at the Executing Agency level, to assess quarterly the performance o f the consultants. The assessment report will be sent to and agreed with the IDA on an annual basis. This report will provide the basis for continuation o f the consultants’ services. Procurement audit with Terms o f References acceptable to the IDA will be conducted at least twice a year.
The Assessment found that the overall procurement risk i s HIGH. Prior review thresholds, as found in the Procurement Plan, are based on this capacity assessment.
Procurement Plan. GOI, at appraisal, developed a draft procurement plan for project implementation, which provides the basis for the procurement methods. This plan has been agreed between the Borrower and the Project Team o n September 6, 2005 and i s available at. I t will also be available on the e-Aceh website and on the IDA’S extemal website. The Procurement Plan will be updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity.
Frequency o f Procurement Supervision. In addition to the pr ior review supervision to be carried out from IDA offices, the capacity assessment o f the Implementing Agency has recommended monthly supervision missions to carry out post review o f procurement actions.
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Details of the Procurement Arrangements Involving International Competition
A. Goods, Works, and Non Consulting Services
0 ICB/NCB contracts estimated to cost above US$5 mi l l ion (Works) and US$500,000 (Goods) per contract, will b e subject to prior review by the IDA.
B. Consulting Services
0 L i s t o f consulting assignments with short-list o f intemational f i r m s or individual with intemational experience.
7 Comments
0 Consultancy services estimated to cost above US$500,000 (firms), US$50,000 (individuals) per contract and single source selection o f consultants (f irms) wil l be subject to prior review by the IDA.
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ANNEX J: FINANCIAL MANAGEMENT AND DISBURSEMENT ARRANGEMENTS
A. Inherent Country R isks
1, Budgetary procedures
2. Public Sector Accounting
Summary and Overview. This project i s designed to facilitate reconstruction and rehabilitation o f housing among affected families in the Tsunami affected areas o f Aceh. The Executing Agency for the Trust Fund will be the Ministry o f Public Works (MPW). Project implementation relies substantially on community participation and activities, based on models that have been widely applied in a number o f other projects financed by the IDA. The community-driven development model brings both r isks and benefits -risks f rom poor capacity and implementation points that are widespread in the region, and safeguards arising fkom community participation. The financial management assessment has taken these into account, and recognizes existing constraints o f poor infrastructure and capacity in Aceh, including inadequacy o f MPW staff in Aceh. Although M P W has had prior experience in managing IDA financed projects, i t i s anticipated that lack o f clarity role and coordination within implementing agencies and low financial management capacity in the local level will impose special challenges. Based o n these factors, financial management risks inherent in the project entity have been rated as high. Measures to mitigate these r i sks have been proposed, including the issuing o f a detailed project operational manual for the proj ec t.
Med ium Overall progress in budgeting reforms i s slow. The r isks come f rom lack o f implementation guidelines o n a n e w budget law, i.e. transition f r o m dual budget to un i f ied budgeting system. There are many implementation guidelines, wh ich need to be issued by MOF. Public sector follows single entry and cash basis with a partially computerized system. An Accounting Standards Board has issued Exposure Drafts o n modi f ied accrual basis. Implementation o f standards started at F Y 0 5 i s remains a challenge
Medium
Internal Controls and Risk Analysis. The project’s major r isks relate to grants implementation at the community group ( K S M and village) level, particularly whether grant beneficiaries use the funds for intended purposes. Risks are also related to management o f building materials and financial administration. Besides the anti-conuption plan, the project includes several mechanisms to mitigate these risks. Among them are:
0
0
0
0
channeling the project funds directly to the group beneficiaries; the group will manage and execute the project implementation; fund flows will be linked to progress achieved o n the ground; providing technical support to the national and local management teams; the consultants will assist P M U and PJOK o n project administration and implementation independent reporting by facilitators, supervising and monitoring to flag developments o f project implementation adaptation o f proven management tools and systems used successfully under other CDD IDA projects (KDP and UPP)
Besides the above risks, there are some risks related to delay o f issuance o f relevant documents. The IDA proposes to mitigate this risk of delay by requiring a finalized, draft year one budget DIPA acceptable to the IDA, be available as a condition for grant effectiveness. For community grant disbursement, the DG Treasury Circular letter for funds disbursement must be drafted and agreed upon, and the Project Operational Manual must be issued by MPW and acceptable to the IDA.
A detailed analysis of financial management r isks arising f rom the country situation, the proposed project entities and specific project features and related internal controls has been completed during the assessment, and i s summarized below. These risks have been rated on a scale f rom High, Medium and Low.
Risks 1 Assessment I Summary Comments and Risk Mit igat ion Measures.
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3 , Audit ing Arrangements
OVERALL INHERENT C O ~ R Y RISK B. Entity specific risks 1. Implementing Entity Organization
Overall Entity specific Risk C. PROJECT SPECIFIC RISKS 1. Organization Structure
_ _ _ _ _ _ ~
2. Budgetary procedures
3. F l o w o f Fund
4. Selection and out put o f consultants
5. Procurement procedures for housing material 5. Grant implementation
7. Payment validation
8. Audit arrangements
Overall project specific Risk
Medium
Med ium
Medium
H i g h
High
H i g h
High
H i g h
High
Med ium
Med ium
H i g h
H i g h
High
Medium
High
BPKP has legal mandate for external audit o f Aceh project. Detai l - - - implementation to exercise the mandate has not been issued yet.
Lead implementing agency i s M P W , which has several experience in managing IDA projects. However, implementing unit under local government i s weak capacity. Accounting capacity at M P W i s adequate, but capacity in local government i s weak. Risks arise f rom integrity constraints and l imi ted capacity o f the auditor Risks arise f rom semi-automated accounting systems in government agencies, inabil ity to deliver reliable and t imely financial reports and inability o f these systems to track outputs.
M P W has several experiences in managing IDA projects. However, coordination and capacity in the local level are weak. Group o f consultant team wil l b e provided to assist P I U to manage the project in the local level. Budget document issuance may create delay on project implementation. All procurement process should begin prior to budget issuance and when the budget document issued, contract could be signed and executed. The fund wil l transfer t o group account in three trances (40%, 40% and 20%). Except the first trance, the transfer wil l depends o n progress implementation. There will be independent facilitators who wil l ensure that the fund goes to eligible beneficiaries. Substantial expenditure included in TA, which i s traditionally vulnerable to internal control lapses. Mi t igat ion though appropriate internal controls prescribed in Project Operational Manual, i.e. consultant payment related to presentation o f consultant in the f ield Procurement process and availabil ity o f housing material in local market for a big demand i s questionable. Weak capacity o f community to implement the project, especially o n building material supply. Adoption o f proven management tools and systems used successfully under UPP and KDP, included photo evidence o n progress implementation Traditionally a weak area in IDA financed projects. To mitigate risks, additional documentation and internal control requirements wil l be prescribed in Project Operational Manual to enhance documentary trails. Risks arise f r o m the auditors’ integrity and capacity constraints. Option o f H i r i ng a private auditor t o work under BPKP as mention in government regulation for Aceh.
Implementing Agency. At the central government level, the existing national steering committee for BRR will serve as the policy-making and advisory body o n land and housing issues for the Government’s National Settlements Strategy Program. The Project Management Unit at the provincial level will be
76
under M P W . In sub district level, there will be PJOK who will administer payment requests f rom the community groups. The implementation o f the reconstruction program will be executed by community groups and apply the community-driven development (CDD) mechanisms established through the Urban Poverty Program (UPP) and the Kecamatan Development Program (KDP), both financed by the IDA. T o maximize efficiency, the housing program will work in urban and rural areas covered by these two programs, as both have existing community-based networks at the kecamatan and kelurahan levels, enabling them to assist in the management and monitoring o f grant disbursements. The role and responsibility o f BRR under this project will be the coordination o f reconstruction work, including facilitation in removing the administrative bottlenecks, and coordination among different agencies and donors.
Budget Structures. The project will follow the standard government budget process. All expenditures funded by this Trust Fund wil l be budgeted in the central government budget. MOF promised to speed up the budget process and work in parallel. The budget will be simplified, instead o f detail l ine activities as in other project.
Project Financial Management Staff. M P W staff has experience with IDA financed projects. It meets the government requirement as project finance officer. However, staff members at the sub-district level do not have adequate experience and knowledge o f IDA financed projects. In addition, overall environment control i s weak. Corruption and collusion have been reported from the past experiences without fully satisfactory fo l low up action.
The mitigation actions to reduce the above r i sks include providing technical assistance and independent monitoring to the project management operation. The consultant will provide technical assistance and training in project screening, financial management, procurement included budget document preparation, disbursement mechanism, accounting and reporting. The project also provides technical assistance that includes an oversight and monitoring activities at the local level.
Procurement. The project will fo l low CDD procurement procedures for shelter support grants. The risk may come from the procurement process and availability o f housing material in the local market, since there will be a big demand for such materials. The other r i s k i s selection o f consultants who will assist the project management units and community groups.
Compliance with Audit Covenants. There i s n o outstanding Audit Report either f rom the ministry or DG level on the IDA financed project. Therefore, there i s n o restriction for the agency to proceed the project.
Accounting and Reporting. The accounting system and procedures will fo l low the government accounting system. The specific accounting procedures for the project’s activities will be included in the Project Manual. The Project Management Unit (PMU) in MPW and PJOK at the sub district level will maintain separate accounting records, o n cash basis. The community group also requires simple accounting and financial reports. The consultant will assist a l l implementing agencies on financial administration. P M U in M P W will responsible to prepare and submit a consolidated financial report to the IDA on quarterly basis, The format o f the annual financial statement will be the same as financial statement in the FMR.
Audit Arrangements. Financial and managerial audits will be carried out by the project. The National Development Audit Agency (BPKP) will conduct annual audits especially designed for the NAD and Nias reconstruction effort, uti l izing a CDD audit manual, and an increased 5% sample size. The annual audit report will be furnished to the IDA n o later than six months after the end o f the government’s fiscal year.
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The audit assignment will be in accordance with the agreed Terms o f Reference. The TOR will include an assertion on the reliability o f the project financial statements and a verification o f accounting information at the community level on a sample basis. The annual audited financial statement will include a review and reconciliation o f Special Account transactions and quarterly FMRs. The audit report wil l be accessible to the public.
Audit Report Project Financial Statement
Due Date A single annual Audit Report, no later than six months after the end o f each Fiscal Year
Special Account. GO1 will establish a Special Account (SA) at Bank Indonesia or a State-Owned Commercial Bank (SOCB), acceptable to the IDA, denominated in U S dollars. The SA will be under the name o f the Directorate General o f Treasury (DG Treasury), Ministry o f Finance. The DG Treasury shall provide copies o f the weekly bank statements o f the SA to the PMU, which will reconcile transactions with the financial record. Special Account withdrawal procedures wil l fo l low the governments’ procedures, as acceptable to the IDA. The project will fo l low FMR-based disbursement procedures. The Withdrawal Application (W/A) will be submitted to the IDA on quarterly basis and be supported by quarterly FMR and cash forecast for the next six months.
Flow of Funds. Funds for infrastructure block grants and shelter grants will be channeled to community group accounts through a State-Owned Commercial Bank (SOCB) selected by the GOI, acceptable to the IDA, which has a real-time online banking system and extensive branches in tsunami affected areas. M P W will s i g n a contract agreement with this SOCB to provide banking services o n channeling grant funds, A master account will be maintained at the SOCB-Banda Aceh which authorizes the withdrawal of fund by eligible beneficiaries. The P M U manager will be responsible to administer and prepare reports on project activities.
The PMU manager will submit payment requests (SPM) to Treasury Offices (KPPN), which will issue payment orders (SP2D) to the SA depository bank (Bank Indonesia or SOCB) and remit funds from the special account to the master account in the SOCB in Banda Aceh. The SOCB will provide monthly statements to P M U for monitoring purposes. Eligible beneficiaries are identified in the field, which are community groups (KERAP/TPK) for infi-astructure or housing grants. A standard form will be completed by eligible beneficiaries, certified by the housing facilitators and approved by subdistrict project manager (PJOK).
PJOK will submit the beneficiaries’ forms and payment requests to the SOCB branch office at the relevant district. The bank branch office will check if the claims match the master l i s t provided by P M U through the SOCB-Banda Aceh and arrange for a real-time direct debit to the master account at the SOCB-Banda Aceh and credit the beneficiaries’ bank accounts opened either at the SOCB branches or other banks. Except for the f i r s t tranche, the second and third payment wil l depend o n progress reports from the field. The f low o f fund diagram i s illustrated in Figure 1.
Disbursement for other components will fo l low the standard govemment f l ow o f fund mechanism, which i s acceptable to the IDA. The P M U will be responsible for administering and preparing reports on project activities. The PMU submits payment requests (SPM) to the Treasury Offices (KPPN), which will issue payment orders (SP2D) to SA depository bank (Bank Indonesia or SOCB) to transfer funds fi-om Special Account to the supplier/consultant/ contractor’s account.
Based on SP2D, the P M U manager prepares a consolidated project financial reports for a l l activities, which should be submitted through DG Treasury to the IDA o n a quarterly basis and used as the basis for disbursement, T h e f low o f funds diagram for other components o f the project shows in Figure 2.
78
Figure 1 Flow o f Funds for Housing and Infrastructures Grants
AIC Induk Master List
Guidance n I C
1111
SP2D I 3b I
Guidance I b
"I PMU I Banda ceh IPI
Proposed List 2c
Notice of authorized PJOK and DMC SOCB branch
3
I DMC I I KORKOTIKM-KAB I
I I
Instruction to pay Proposed List
On-line Kecamatan Transfer I - 4d I
Request 1 1 Request for payment for payment
4a 4a
........................ ......................... ......................... ......................... i Facilitators i Facilitators i
111111 1111111111
I I I I I I I I 1
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Notes for Figure 1 : l a l b I C
2a
2b 2c 2d 2e
3 3a 3b
4a 4b 4cid
5a
Memorandum of understanding on fund channeling mechanism Guidance Letter from MPW to PMU. Guidance Letter form SOCB Head Office to SOCB Banda Aceh (Coordinating bank)
After community preparations completed, SPPB (grant agreement) between KERAP/TPK and KP are signed with P JOK PJOK to submit the proposed list (grantee, address, amount) thru DMC to PIU PIU to submit the proposed l i s t (grantee, address, amount) to PMU PMU to submit the “approved” master list (id. No, grantee, address, amount)to SOCB Banda Aceh SOCB to distribute the master list to the relevant SOCB Branch (paying bank)
PIU submit the names and specimen o f signatures o f PJOK and DMC to SOCB Branch based on the MOU, PMU issue request for payment (SPM) to KPPN KPPN, issue payment order to SOCB Banda Aceh to overbook from Special Account to AiC Induk
When payment i s due, KERAPiTPK and KP submit a request for payment (SPB) to PJOK PJOK and D M C approve and forward the SPB to SOCB Branch After verifications, SOCB transfer funds crediting KERAPiTPK or KP account and debit the A/C Induk at the SOCB Banda Aceh
SOCB Banda Aceh to provide PMU with report and bank statements regularly, used as the basis for preparing FMR
80
Figure 2 Special Account and Flow o f Funds for Non-Grants
Branch
World Bank ....................................................... WIA - 3C
MOU - l a
KPPN n ' Circular Letter -1 b
A "- I I . I . I . I . I . I . I . -. I 2b I
Banda Aceh Bank Stmnt of SA - 3a
I 1 I Guidance
Consultants1 Suppliers
Notes for Figure 2. 1 a l b IC
Memorandum o f understanding o n fimd channeling mechanism Circular Letter f rom DG Treasury to K P P N o n procedures for payments Guidance Letter f o rm SOCB Head Off ice to SOCB Banda Aceh
2a When payment i s due, consultantslsuppliers submit invoices to P M U 2b P M U submit request for payment (SPM) to K P P N Khusus 2cld K P P N Khusus issue payment order (SP2D) to SOCB banda Aceh to debet /SA and credit consultantisupplier
account 3a SOCB provide bank statement o f S/A to DG Treasury/PMU/KPPN Khusus 3b PMU prepares FMR and submit it thru DG Treasury 3c DG Treasury forward FMR along with WIA to WBOK 3 d WB replenish funds to the Special Account at SOCB Banda Aceh
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Action Plan. As an emergency project, conditionality will be held to a minimum. There are a few actions that the central government must implement before the project can become effective. Table 1 below shows these action plans as agreed.
Issued Problems Remedial Action
1, K e y Project staffing Appointment o f key project management staff, inc. M P W project manager, director and financial officer for the PMU, and draft TOR for FM consultants should be agreed with the IDA
The GO1 Year 1 budget D I P A i s drafted documented, , acceptable to IDA P O M issued by executing agency, acceptable to
2. Budget for the first year implementation 3 .Project Operational Manual (POM) or IDA JuklaWJuknis, inc. FM aspect 4. DG Treasury Circular letter and disbursement drafted 5 . Channeling grants to beneficiaries SOCB for channeling finds
6. Project management
DG Treasury Circular letter for budget funding
Final contractual agreement between P M U and
FM Training for financial officer capacity Recruitment o f FM Consultant
Table 1- Action Plan
Responsibility Due Date Unit MPW Before Grant
Effectiveness
M P W M O F Before Grant Effectiveness
grants disbursed M P W Before Community
MOFMPW Before Community
M P W Before Community grants disbursed
grants disbursed
Early in Year 1 o f project implementation
M P W
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ANNEX K. IMPLEMENTATION SCHEDULE AND PLANNED PROGRESS
10 1
2
3
4
5
6
7
8
9
'0
I1
i2
3
14
i5
'6
I ?
i8
i9
!O
!1
!2
!3
!4 !5
!6
!7
!8
!9
IO
I1
12
13
I4
I5
I6
17
I8
19
10
.1
.2
Tasks MDTF PAD prepared, approved
PMU established
Project manuai drafted
Bridging consultants recruited
Pius established
Project manuai finalized, issued
NMC recruited
DMCs recruited
NMC-DMC project workshop
Training modules prepared, training of trainers
Housing taciiitators recruited (KDP & UPP facilitators)
Housing facilitators trained (KDP & UPP facilitators)
Housing facilitators mobilized to district, sub district, viliage
Provincial launching workshop
District appointment of PJOK
DHWS of ERR established Provincial housing coordination committee established Cityidistrict housing coordination commitees established
Project verification of target kecamatan, KDP, UPP
Project socialization in kecamatan w/ KDP, UPP
Project socialization in targe villages w/ KDP, UPP
Establishment of CTCKERAP, UPP, TPK, KDP
Community self surveys
Community settlement plans Preparation of list of target house reconstruction
Preparation of list of target house reahbilitalion
Approval of lists
Formation of housing groups, bank accounts
Document preparation for tranche 1 house recon-rehab
Document compilation, process wi PJOK to KPKN
Tranche 1 transfer to housing groups Tranche 1 implementation reviewed by facilitators
Document preparation for tranche 2 house recon-rehab Document compilation, process w/PJOK to KPKN
Tranche 2 transfer Io housing grous Tranche 2 implementation reviewed by facilitators House rehabiiitation completion certified by faciiitator
Document preparation for Iranche 3 house reconstruction Document compilation, process w/ PJOK to KPKN
Tranche 3 transfer to house recon groups
Tranche 3 implementation reviewed by facilitators
House reconstruction completion certified by facilitator
I
All Programs - r m [
Phase1 - For Pliot Activities (In Banda Aceh)
Overlap Range between Pilot and Phase i
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ANNEX L: CONSTRUCTION MATERIALS: SUPPLY AND DEMAND CONDITIONS I N PROJECT AREAS
The objective o f the Community-based Settlement Reconstruction & Rehabilitation Project in NAD, Nias i s to facilitate the reconstruction and repair o f settlements in tsunami-affected areas o f NAD and Nias. 200 villages (100 rural, 100 urban) are targeted, focusing assistance on families whose houses were either destroyed or damaged by the disaster. The project will assist these households/families reconstruct up to about 10,000 homes and rehabilitate up to about 15,000 homes, as wel l as refurbish small-scale community-level infrastructure.
The maximum target o f 10,000 houses reconstructed and 15,000 houses rehabilitated has the potential to severely burden the local market for key building materials, including wood, cement, brick, zinc roofing, and steel reinforcement (for earthquake resistance), in two ways. First, other donors, NGOs, and government agencies will be assisting in housing reconstruction and rehabilitation at similar and lesser levels, which are currently pledged at about 115,000 to 160,000 units26. Secondly, local and regional markets, warehouses, stores, roads, and ports were also severely damaged or destroyed, significantly disrupting the supply and distribution o f building materials and making it diff icult to rapidly increase supplies available in Aceh. This problem must be addressed, as communities will be seriously constrained during the recovery period if there i s l imited availability o f building materials to purchase and prices rise as people chase limited local building supplies.
Normally, data on historic and current construction capacity including building materials supply, availability, and sources would be located with provincial and district governments, as wel l as through provincial and district chamber o f commerce’s and real estate and contractor associations. In Aceh, these data have al l disappeared. The size o f pre-tsunami NAD building market was roughly equivalent with that o f West Sumatra today, and ha l f that o f Nor th Sumatra today.
Aceh construction industry background The construction sector o f the economy in Aceh reached i t s peak in 1995, fo l lowing steady growth since 1975. However, f rom 1996 onward, during a period o f civil-military conflict and unrest, as wel l as the economic-monetary crisis of 1997-98 through 2000, the sector displayed significant negative growth. F rom 2001 until the earthquake-tsunami o f 2004, the construction sector was s t i l l quite stagnant, exhibiting only minor growth, and had not returned to i t s previous levels o f 1995.
The construction sector consists o f two types o f construction: (a) contracted construction and (b) self-built construction. Contracted construction includes government contracts for government buildings, roads, bridges, as wel l as private sector buildings (offices and commercial buildings), and a very small percentage o f upper end residential construction in and around Banda Aceh.
Self-built construction i s the method most pre-tsunami residential houses were built in Aceh, namely by household owners, with family help, uti l izing timber (usually illegally procured timber f rom local protected forests, thus free), cement and sand, some br ick (more br ick and cement in urban settings, more timber in rural settings), and zinc sheets for roofing material. The average private residence in Aceh i s 50 sq. meters, with 41% o f rural, and 35% o f urban houses under this average size. Dercon2’ estimates the self-building capacity o f Aceh over the last 25 years at somewhere between 17,000 and 28,500 houses constructed per year in this manner.
In the same analysis, Dercon estimated average housing expenditures o f Aceh residents at US$73 per year in urban areas and US$28 per year in rural areas, representing 40% o f urban non-food expenditures and
26 This i s as o f June 7,2005. (aggregation o f number o f houses committed by Asian Development Bank, United Nations, Caritas, Red CrossiCrescent, IOM, Habitat for Humanity and others). 27 Bruno Dercon, DFID, June 3,2005.
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15% o f total urban expenditures, and 35% and 10% respectively for rural areas. I t i s relatively safe to assume that this very l o w household spending capacity could support only a very small building materials supply and distribution industry in Aceh prior to the disaster. Needless to say, after the earthquake- tsunami o f December 26,2004, this supply and distribution industry has been severely weakened.
Basic building materials status in NAD-Nias
1.
2.
3.
4.
5.
6.
7.
gravel - adequate quantities o f gravel are found in al l areas o f Aceh, except Sabang, which i s a limestone-based island; Banda Aceh and Aceh Besar supply Sabang with sand and gravel; the quality o f gravel ranges from medium to good; excavation o f gravel includes both legal and illegal local sources; generally gravel i s excavated from local rivers, possible only before and after the rainy season, September to January, as excavation during the rainy season i s difficult, and n o stockpiling facilities are owned or utilized.
sand - adequate quantities o f sand are found in al l areas o f Aceh, except Sabang, which i s a limestone-based island; Banda Aceh and Aceh Besar supply Sabang with sand and gravel; the quality o f sand ranges i s generally good; excavation o f sand includes both legal and il legal local sources; generally sand i s excavated from local rivers, possible only before and after the rainy season, September to January, as excavation during the rainy season i s difficult, and n o stockpiling facilities are owned or utilized.
br ick - traditional br ick making i s available around the provincial town o f Banda Aceh, as wel l as around most district capital towns; quality ranges substantially between very poor quality in Sabang to medium quality in Banda Aceh and variable quality in Lhokseumawe, Langsa, Meulaboh; quantities produced are adequate in Lhokseumawe, Langsa, Meulaboh, and inadequate in Banda Aceh and Sabang; prices are currently on the r ise in al l areas; Bataco (cement bricks) are produced in Banda Aceh, but have not been preferred historically by local consumers. N e w brick-making facility has been donated and arrived in Banda Aceh.
cement - production o f cement in NAD from Lhoknga has stopped due to earthquake-tsunami damages; the two types o f cement needed and generally available, for structural and non-structural concrete, comes from Semen Padang, shipped in from Medan; some cement i s also available f rom the Lafarge Group, also in North Sumatra; during security operations, when transportation i s constrained between Medan and Banda Aceh, and Banda Aceh and districts, cement disappears f rom local markets, and prices rise dramatically; cement prices are vary sensative to transport costs and constraints.
steel - small <10 mm steel bars are available in most local markets f rom manufacturers in Medan, used for concrete reinforcement; larger sizes of steel bars >20 mm for use in bridge construction usually are procured from Jakarta or Surabaya manufacturers.
skilled labor - laborers skilled in masonry and carpentry, as we l l as construction foreman and supervisors usually come f rom Medan; unslulled and semi-skilled laborers come from Aceh as well as Nor th Sumatra and Java.
timber - very l itt le certified timber i s available anywhere in NAD. Timber concessions have been limited due to on-going conflict. Self-built housing usually utilizes illegal local timber, due to limited law enforcement o f small scale theft. Larger scale construction utilizes timber f rom Riau and Kalimantan, legal and illegal.
Project impact on local construction industry supply and distribution Two basic types o f houses are planned, using existing Ministry o f Public Works standard house designs, type 36 and type 45, both approximately 36 square meters. Each house type can be constructed on st i l ts
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(elevated) for rural and coastal villages, and directly on ground foundations for urban areas. While wood content requirements are slightly higher for the elevated house designs and cement and brick requirement are slightly higher on the grounded house designs, o n average wood requirements are about 10 cubic meters per house. Project requirements for this level o f reconstruction are 10m3 x 35,000 houses (equivalent) = 350,000 cubic meters of wood in various forms (plywood, planks, door and window jams, roof ing frame) at a current price o f between Rp.3.5 mi l l ion and Rp. 2.8 mi l l ion / cubic meter. For Aceh- Nias housing reconstruction as a whole (280,000 houses), could reach 2,000,000 cubic meter o f timber.
The Minister o f Forestry has disallowed the use o f forest resources from NAD province for reconstruction purposes, as most o f the available timber there i s located in protected forests and national parks. In addition, the current certification o f origin process has been corrupted, leading to a crackdown o n al l log and timber transportation and very frequent confiscation (with or without proper documentation) f rom a l l parts o f Indonesia.
Similarly, cement requirements will be high, together with sand and gravel, with an average o f 2.68 cubic meters o f concrete required for each house. This totals 93,800 cubic meters o f concrete for project purposes, and 536,000 cubic meters for Aceh and Nias housing reconstruction as a whole. Cement was produced in pre-earthquake-tsunami NAD, but production facilities were destroyed / damaged in the disaster. The status of repair i s unknown. Cement production exists in Padang, but production levels and spare installed capacity i s unknown.
Bricks will also be a key building material in high demand for reconstruction, with an average o f 8 1 square meters o f br ick required for each house. This totals 2,835,000 square meters o f br ick for project purposes, and 16,200,000 sq. mt. for Aceh and Nias housing reconstruction as a whole. The previous local br ick making industry in Aceh was damaged. Rebuilding the local br ick industry will have to be supplemented by purchasing and transporting br ick to NAD, f rom other areas o f Sumatra, probably Nor th Sumatra, Bataco (cement brick) i s available in some locations in Aceh, but previously not favored by consumers.
Zinc and/or asbestos roofing wi l l also be in great demand. Each house constructed will require 63 square metes x 35,000 houses equivalent, 2.2 mi l l ion square meters o f zinc or asbestos, at Rp. 46,130 per square meter. Major production o f zinc and asbestos i s located in Jakarta, Surabaya, and Medan.
Alternatives to address the situation The project impact on the local construction and building materials industry will be enormous, with a targeted reconstruction of up to about 10,000 houses, and rehabilitation o f up to about 15,000. In addition, other donors, bilateral and multilateral a id agencies as wel l as the private voluntary agencies will be assisting to reconstruct or rehabilitate up to 125,000 houses.
In a disaster this enormous, with reconstruction plans to match, massive government intervention i s certainly not unwarranted. I t would not be unusual for BRR or other government agencies to procure building supplies, or coordinate the procurement o f building supplies for the Aceh reconstruction, f rom al l parts o f Indonesia or internationally, to insure adequate quality, quantity and competitive prices for the Aceh reconstruction. The government could, and should assist construction industry participants to rebuild, reconstruct, and expand their construction and building supply enterprises with loans and tax incentives, to rise to the challenge of the reconstruction effort. But n o such efforts are currently being discussed with the government; such efforts are beyond the realm o f this settlement reconstruction and rehabilitation project.
What this project can do i s capitalize on i t s community-driven development approach, and uti l ize the strengths of organized housing groups, of organized community bodies to identify sources o f building materials, to negotiate prices, quality, and delivery o f such building materials to participant community groups for settlement reconstruction and rehabilitation. If more than one desa or kelurahan community
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body i s experiencing the same building materials problems o f price, availability, and/or quality, then city/district DMC together with the PIU and housing coordination committee may be called on to assist to solve the problem. Finally, if community bodies in several city/districts are experiencing similar building materials procurement problems, then the P M C together with the DHPF o f BRR may be called on to address the problem.
Specifically concerning the availability o f timber for settlement rehabilitation and reconstruction in NAD and Nias, this problem i s a national policy and operational issue, beyond the scope o f this project, and wil l have to be dealt with by the central government. If necessary, BRR may intervene in the market by procuring (or contracting an N G O to procure) quality key materials (timber, cement, steel) for purchase by CTCIKERAP and KP groups at fair prices.
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ANNEX M: TERMS OF REFERENCES (TORS) Technical Assistance F o r Preparation of
Community-based Settlement Rehabilitation and Reconstruction Program for NAD - Nias
Background O n the morning o f December 26, 2004, a major earthquake registering 9.0 on the Richter scale hit Indonesia, with i t s epicenter in the Indian Ocean, within 150 kilometers o f Aceh Province, on the northern tip o f Sumatra. The earthquake was followed by a massive tsunami that devastated the human population living on the coastline o f Aceh Province, and parts o f North Sumatra Province. The disaster killed over 230,000 people and 700,000 people were displaced.
The Government carried out a multi-sectoral damage assessment** in January 2005 with support f rom the donor community and jo int ly prepared a Technical Report and associated Notes o n Recons t ru~ t ion~~ , to help donors and bilateral and multi-lateral financing institutions in assessing the impacts o f the disaster and in identifying possible areas o f assistance.
According to the Damage Assessment, i t i s estimated that some 4,000 villages and urban communities have been affected, approximately 127,000 houses completed destroyed and approximately 153,000 partially damaged. The preliminary estimate o f damages and losses in Aceh and Nor th Sumatra i s estimated at Rp. 41.4 tri l l ion ( U S 4 . 4 5 billion) o f which Rp.13.4 t r i l l ion (US$1.4 bil l ion) i s attributed to the housing sector.
In the context o f these disasters, reconstruction o f the housing sector comprises an important component o f the Aceh post-tsunami recovery program; previous housing reconstruction projects indicate that as people rebuild their homes following a disaster, it helps facilitate the psychological healing process. Furthermore, housing i s intrinsically linked to livelihood restoration, especially when people are given the opportunity to generate much needed sources o f income and learn new sk i l l s through housing construction training programs.
The GO1 has formulated a Blueprint for Rehabilitation and Reconstruction in Aceh and Nias, which guides the coordination and implementation o f a l l recovery programs being introduced in Aceh. As one o f the blueprint’s components, the Comprehensive Human Settlements Rehabilitation and Reconstruction Strategy provides an overall approach for programming the repair and reconstruction o f housing and settlements for the affected population. This policy framework i s a basis for this housing reconstruction program and serves as a basis for a l l housing programs undertaken by various donors in order to ensure consistency, transparency, and a smooth transition from the r e l i e f to the recovery phase. The proposed project supports and builds upon this Government framework and f i t s within the blueprint strategy for the overarching recovery process.
Project Development Objective The primary development objective o f the project i s to facilitate the reconstruction and repair o f settlements in tsunami-affected areas o f NAD and Nias villages over a three-year period. An estimated 200 villages are expected to be covered, o f which 100 are rural and 100 are urban. The project aims to assist families whose houses were either destroyed or damaged by the disaster, in the reconstruction o f approximately 10,000 homes and the rehabilitation o f an additional 15,000 homes, as well as to refurbish small-scale community leve l infrastructure. This objective will be achieved through the provision o f
28 BAPPENAS and T h e Intemational Donor Community (eds.) (2005): Indonesia: Preliminary Damage and Loss Assessment - The December 26, 2004 Natural Disaster, Jakarta, 19 January. 29 BAPPENAS and The Intemational Donor Community (eds.) (2005): Indonesia: Notes on Reconstruction - The December 26, 2004 Natural Disaster, Jakarta, 19 January.
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grant funding to communities for the reconstruction and repair o f damaged housing stock based on individual entitlements. Priority infrastructure needs will be addressed through block grants to communities. The proposed settlement reconstruction project will employ a community driven approach for program planning, management, implementation, and monitoring in order to target appropriate beneficiaries, maintain transparency o f the f low o f funds, and create community ownership o f the program.
T o enable the reconstruction process to begin as quickly and efficiently as possible throughout NAD and Nias, the project wil l also provide technical assistance packages to establish a Directorate o f Housing, Water, and Sanitation (DHPF) under the NAD-Nias Earthquake/Tsunami Reconstruction and Rehabilitation Agency (BRR) to oversee the implementation o f the GOI’s settlements program,
Project Administration and Implementation The Ministry o f Public Works, as the project executing agency, will establish a Project Management Unit (PMU) lead by a project manager located in Aceh, who will report regularly to DHPF o f BRR on project progress and guidance, and maintain coordination regularly with Project Implementation Units (PIUs) in the settlement office (dinas permukiman) each target district/city. The PMU will hire a provincial Management Consultant team (PMC) to assist in project management, and District Management Consultant teams (DMC) with offices in the participating kotas / kabupatens in NAD and Nias, to assist each PIU, and f ie ld housing facilitators to work closely with target communities (kelurahan and desa); teams o f community volunteers will also be recruited, trained, and assigned to assist at the village (desa, kelurahan) level.
At each level o f local government (provincial, district, city), a coordination committee will be convened and the membership will be the provincial/local government level. These local housing coordination committees will be responsible for reviewing the implementation progress at the local government level, and advising the relevant sectors on the necessary technical measures to revolve issues that arise in the field.
Role A small Preparatory Techncial Assistance (PTA) Team will be contracted by the Kepala Satuan K e r j a P M U to assist them to undertake and complete final project preparations for start-up. The preparatory team wil l be contracted approximately for four months in the period immediately following grant agreement approval through the start-up o f project f ield implementation, completing their assignment shortly after the BRR Technical Advisors, PMC and D M C teams are completely set up.
Working Arrangements The P T A will establish a fully staffed and well-equipped office at the provincial-level in Banda Aceh, NAD, and will be led by a Project Management Advisor, assisted by experts, technicians, and administrative office staff.
Scope of Work The Preparatory Technical Assistance Team will be contracted by the Kepala Satuan KerjaProject Management Unit (PMU) to assist it in undertaking and completing f inal project preparations. The Preparatory Team will be contracted approximately for the 4 months o f the project, or until the complete set up o f the P M C and DMCs.
Specifically, the Preparatory Team wi l l : 1. Finalize a l l project implementation manuals, operational guidelines, technical guidelines, and
supplementary guidelines as needed; 2. Finalize a l l training modules, training materials, and training evaluation formats; 3. Finalize socialization strategy, (information and awareness raising) programs and materials;
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4.
5.
6.
7.
8.
9.
Prepare and finalize all technical assistance needed that related with procurementkender activities, including TORS for BRR Advisors, PMC, DMCs, and housing facilitators; Coordinate with key project stakeholders on project start-up activities and logistics, including provincial governments o f NAD and North Sumatra, all target city and district governments in NAD and Nias, and BRR; facilitate the formation o f the DHPF and local housing coordination committees; D e s i g n project monitoring, evaluation, and coordination procedures and operation standards for all project implementation components (PMU, P N , PMC, DMC, housing coordination committees); Develop a project’s data and information management, which will include a project data base and various computerized reporting f rom the field level, the establishment o f a project web site, on which the M I S operates, the project-wide complaint and resolution system, and the project financial management system; Prepare a project complaints handling and resolution system with multiple access (electronic and manual) f rom multiple levels (village, sub district, district, province, central), and integrate into design o f the future project MIS; Develop a rough estimate o f the materials required and carry out a rapid market survey o n the supply condition o f construction materials to propose a procurement management systems (logistics and supply o f materials) for the project.
Period o f Service: Technical services by the Preparatory Technical Assistance Team wil l be required approximately for 4 months, or until the BRR Advisors, PMC, and D M C teams are fully set-up.
Staffing Requirements:
1.
0
0
0
0
Settlement Program Advisor: (1 person @? 4 staff-months) Minimum master (S-2) degree, with at least 8 years similar settlement housing reconstruction/rehabilitation experience, and at least 5 years experience as team leader o f similar projects. At least 5 years relevant experience in project management and community-driven development Knowledge o f seismichunami resistant construction Familiar with localhegional construction industry, materials, and supply Procurement knowledge an asset. Possess capability to lead and manage a team o f specialists, Fluent in English and Indonesian, both wri t ten and spoken Demonstrated ability to work congenially and productively with consultants, counterparts, and other project stakeholders in a team context. M a i n tasks: o o o
o
o
o
Coordinate al l P T A professional staff finalize housing section o f a l l project operational manuals Liaise with PMU, BRR, provincial government, target city/district governments, Ministry o f Public Works and BAPPENAS, Wor ld Bank Facilitate the establishment o f DHPF, as wel l as provincial and district housing coordination committees assist the DHPF o f BRR prepare multiple standard seismichunami-resistant housing designs using available materials and supplies, with appropriate construction methods assist the DHPF o f BRR to analyze the building materials industry locally, regionally, and nationally, identifying sources as wel l as constraints in the market supply and demand o f construction materials and supplies necessary for seismichunami-resistant housing designs and the appropriate construction methods.
The expert will be assisted by 1 sub-professional with relevant qualification for the same period o f assignment.
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2. Program Monitoring and Analyst (1 person @ 4 staff months) Minimum master (S-2) degree in architecture or community housing and settlements with 5 years relevant experience, including experience in program design, pol icy formulation and strategic planning Fluent in English and Indonesian, both written and spoken
Demonstrated abil ity to work congenially and productively with consultants and counterparts in a team context.
o
0
0 M a i n task: Assist BRIX plan and monitor settlement housing reconstruction and rehabilitation programs on- going in NAD and Nias, reviewing implementation progress, constraints to progress, preparing consolidated reports, and coordinating with various donors and agencies involved in housing construction finalize a l l training modules, training materials, and training evaluation formats prepare project monitoring, evaluation, and coordination procedures and operation standards for a l l project implementation components (PMU, PIU, PMC, DMC, housing coordination committees) prepare a project complaints handling and resolution system with multiple access (electronic and manual) from multiple levels (village, sub district, district, province, central), and integrate into design o f the future project M I S
The expert wil l be assisted by 1 sub-professional with relevant qualification for the same period o f assignment.
o o
o
3. b
0
b
b
0
0
b
Procurement Expert: (1 person @ 4 staff months) Minimum bachelor (S-1) degree with at least 5 years relevant Indonesian experience in development project procurement At least 3 years experience in community development projects Possess experience and ability to work together with government and non-government organizations Familiarity with the Procurement Guidelines and procedures o f the Wor ld Bank, or at least with other equivalent international agencies Familiarity with the GO1 requirements for procurement Demonstrated abil ity to work congenially and productively with consultants and counterparts in a team context. M a i n tasks: o
o
assist the P M U in the finalization o f all technical assistance tender documents including TORS for the BRR Advisor Team, P M C team, and D M C teams, as wel l as assist in the finalization o f community procurement formats and procedures in the project manuals
4. Data and Information Management Expert (1 person @ 4 staff months) 0 Minimum bachelor (S-1) degree with 5 years relevant experience, including experience in operating
and maintaining M I S system. e Skilled in various computer programs, including but limited to SPSS, STAT, Microsoft Access, SQL,
and generic spreadsheets and database programs. 0 Capable to rapidly and accurately prepare and update database e Experienced in uti l izing and presenting statistical analyses f rom databases in reporting project
progress. 0 Demonstrated ability to work congenially and productively with consultants and counterparts in a
team context. M a i n task: prepare and manage the Project Information and Data Base including error-resistant data- entry menus, standard report formats, automatic summarization and compilation o f reports at city,
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0
5. 0
0
0
0
0
district, and provincial levels, an accurate and frequently updated project data base, and analysis o f project performance as request by project managers.
The expert will b e assisted by 2 sub-professionals with relevant qualification for the same period o f assignment.
Project Manual Junior Expert (1 persons @ 4 staff months) Minimum bachelor (S-1) degree with 3 years relevant worlung experience in writing and editing project manuals, as wel l as in communication and socialization. Possess understanding and knowledge, as wel l as experience with community-driven development projects directed at communities, local governments, and stakeholders. Possess general knowledge o f housing reconstruction and rehabilitation. Demonstrated abil ity to work congenially and productively with consultants and counterparts in a team context. M a i n task: o finalize al l project implementation manuals, operational guidelines, technical guidelines, and
supplementary guidelines as needed (pedoman umum, petunjuk operasional, petunjuk teknis).
Source of Funds Funding for technical consulting services o f the Preparatory Technical Assistance Team contracted by the GO1 will be provided by UPP2, and retroactively funded by a MDTF grant.
Reporting
All written reports will be in Bahasa Indonesia with summaries in both Indonesian and English and submitted to the PMU and other stakeholders. The reports shall be formulated as special report manner, which minimum comprise as follows:
a. Preliminary Assessment Report This report will explain the consultants’ work plan, methodology, understanding o f the terms o f reference, and understanding o f the project as described in any available governing manuals, and basic strategy and approach in undertaking the assignment. The report shall be submitted not more than one month after the issuance o f a work order (instruction for comencing the assignment) by the project. Fifteen copies o f the report are to be submitted, and the consultant will present the report to the PMU, Ministry o f Public Works, and the Wor ld Bank.
b. Monthly Report Standardized report in executive summary format containing PTA’s administration activities for the current month, progress o f work to date, and work planned for the next month. The reports shall be submitted o n the 5’ day o f the following months.
c. Draft Final and Final Report
This report contains a comprehensive account o f project implementation results and outcomes, lessons- learned, experiences gained, and conclusions as wel l as recommendations formed as a result o f undertaking the assignment. The report must be submitted not later than 20 days after the completion of services, with 15 copies. Draft f inal report must be presented to the national project steering committee and Ministry of Public Works, as arranged by the PMU.
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Project Data
All project data generated in the process o f undertaking this assignment i s the property o f the Government o f Indonesia, and the P T A i s responsible for the proper and accurate preparation, utilization, maintenance and storage in the project data base, which will be handed back to the project and PMU.
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ANNEX N: IDA STAFF SUPERVISION ARRANGEMENTS
Challenges of the recovery phase. In the post-disaster situation, information to in form the design o f recovery programs may be diff icult to come by or unreliable. Experience from past IDA support to post- disaster reconstruction and recovery efforts indicates that f lexibil i ty in project design i s necessary to permit changes as project implementation yields more information. Related to flexibility, reconstruction needs to be more closely monitored in the immediate post-natural disaster situation. In Indonesia, there i s the added complexity o f working in an area affected by c iv i l conflict. The overall working environment for the project, therefore poses a variety o f challenges:
Due diligence in housing design and construction. The need for technical quality assurance for the reconstructed housing to be resistant against future hazard risks; Social safeguards. Ensuring that the program i s carried in an equitable way, and that i t addresses the specific needs o f the vulnerable groups (e.g., widows, orphans, IDPs, renters and tenants) on land and housing issues; Promoting donor synergy. Efforts to ensure continuous and constructive donor coordinatiodcollaboration to avoid duplication, enhance harmonization o f technical standards for reconstruction, seek complementarity in financing activities and common project monitoring and evaluation arrangements; Coordination among the MDTFprojects. The project design i s closely tied with three other MDTF projects (KDP, UPP, RALAS) as described in Annex D. Seamless coordination i s essential to ensure that the community-based systems designed under the project function effectively; Better implementation planning and organization of the work program. The project requires close coordination among different levels: f rom the village/community, local government, provincial and ministerial levels. With multiple actors involved in the reconstruction processes, BRR should be taking a proactive role in setting a framework for implementation planning and demarcation o f roles and modalities o f coordination. As BRR i s a new institution with a specific mandate for the post- tsunami reconstruction, there i s a strong need to provide support for institutional strengthening o f BRR. Managing External Relations. The project progress and outcomes will be closely monitored through VIP visits, donor community, NGOs and media. External relations should be managed property to ensure that consistent information o n the project i s conveyed to suit the information requests o f diverse target audience and stakeholders.
The project i s a major contributor to the GOI’s Housing Reconstruction Program, and provides a framework for the inputs o f other donor agencies. Given these high stakes and set o f complex challenges, the reputational risk for the IDA i s significant. Attention o f the donor community on the project performance will be high, and there will be l i t t le tolerance for misuse o f funds. The IDA will be expected to ensure that sufficient arrangements are in place to supervise the project. Supervision arrangements should be geared to: (i) continuously assessing project performance for due diligence and fiduciary performance; (ii) making timely interventions/adaptations based o n the evolving project context and, (iii) providing expert opinions to GO1 as needed, in particular during the project launch to ensure better implementation planning.
Supervision framework. Given the above context, the IDA recognizes the need for intensified supervision arrangements, in particular for the f irst year, to ensure the project’s success and to mitigate reputational risk. In addition to a core task team required for normal operations, a f ie ld supervision team covering critical aspects o f the project i s therefore required.
The field team will be led by an international expert (IDA staff or consultant) with extensive experience in managing projects o f similar scale and nature (Field Team Leader, FTL). The FTL will be based on
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full-time basis in the field (Banda Aceh) and serve as a contact point for the IDA (Headquarters and Jakarta) in the field. Reporting directly to the Project TTL, the FTL will closely monitor project progress and provide continuous support to the implementing agency. The FTL will be supported by consultants (combination o f international and local, and on a full time and part-time basis) to cover the following aspects: (i) project management planning and liaison; (ii) technical/structural due diligence; (iii) social safeguard/land issues (this expert may be nominated by R A L A S team); (iv) environmental safeguards; and (v) fiduciary compliance. Supervision missions will be undertaken on a quarterly basis.
Given the intense supervision requirements, especially during the early years, it i s estimated that the project will require a supervision budget o f about US$350,000 for the f irst year (see Attachment l ) , as the project gets on track and the capacity o f implementation agencies i s strengthened. This estimate was developed by using the case o f recently approved-Nam Theun 2 Hydroelectric Project in Lao P D R as a point of reference. The N a m Theun 2 Project was highly controversial and the need for intensive supervision has been recognized to allocate annual average o f about U S $ l . l mi l l ion as supervision cost for the consecutive five years (see Attachment 2). For N a m Theun 2 Project, two IDA staff members are expected to be based in the field, in addition to other staff that will carry out periodic supervision missions.
