Safeguards and Social Monitoring Report · Medco Power Indonesia Tbk. SOL plans to develop...

Safeguards and Social Monitoring Report

Project Number: 42916-014 April 2017

Sarulla Geothermal Power Generation Project

(Republic of Indonesia)

Semi-Annual Report (July to December 2015)

Prepared by Sarulla Operations Limited for the Asian Development Bank

This safeguards and social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation on or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


4th Reporting (Monitoring period: July-December, 2015)

April 2017

Sarulla Operations Ltd

326959 TRD TRF 14/03 A

Z:\Singapore\GB4\Projects\351208 - Sarulla Geothermal 2015\6.0 Deliverables\6. ADB CM Rev\Sarulla_ADB_SM_3rd_2015_Final

v7_MM_clean.docx July 2015

Form of Safeguards and Social Monitoring Report

3rd Reporting (June 2015)(Monitoring period: January-June, 2015)


4th Reporting (Monitoring period: July-December, 2015)

April 2017

Sarulla Operations Ltd

The Energy Building 51st Floor SCBD Lot 11A Jl. Jend. Sudirman Kav. 52-53 Jakarta 12190

Safeguards and Social Monitoring Report 4th Reporting (Monitoring period: July-December, 2015)

Revision Date Originator Checker Approver Description

A 10 Dec 2016 Leonard Sitompul Albaren Simbolon Albaren Simbolon First Draft

B 26 Jan 2017 Leonard Sitompul Albaren Simbolon Albaren Simbolon Adding ESIA SIL-3 and NIL-3 as appendix

C 7 Apr 2017 Pritta Puspitasari Samosir Melva

Albaren Simbolon Donny Frengky

Albaren Simbolon Donny Frengky

Second Draft

D 17 Apr 2017 Pritta Puspitasari Albaren Simbolon Albaren Simbolon Final Draft

Issue and revision record


Chapter Title Page

A. Project/Business Name and Summary Information 1

(i) Location of project/business ____________________________________________________________________ 1 (ii) Nature ______________________________________________________________________________________ 1 (iii) Scale/size ____________________________________________________________________________________ 1 (iv) Date of construction/operation commencement ____________________________________________________ 4 (v) Compliance __________________________________________________________________________________ 4 (vi) Name, designation and signature of person responsible for preparing/reviewing the report _________________ 5

B. Update on the status of Design/Construction Activities of the Sarulla Geothermal Power Project 6

(i) Drilling Activities (exploratory and production wells) _________________________________________________ 6 (ii) Well Pads ____________________________________________________________________________________ 6 (iii) SIL Geothermal power plant _____________________________________________________________________ 6 (iv) NIL Geothermal power plant ____________________________________________________________________ 6 (v) Access Road (main and internal) _________________________________________________________________ 6 (vi) Transmission Line 150kV _______________________________________________________________________ 7 (vii) Workers’ accommodation area and working area ___________________________________________________ 7 (viii) Laydown areas _______________________________________________________________________________ 7 (ix) Borrow areas _________________________________________________________________________________ 7 (x) Disposal areas ________________________________________________________________________________ 7 (xi) Decommissioning (if applicable)__________________________________________________________________ 7

C. Relevant Environmental Permits of Compliance Certificates 8

(i) Summary of permit conditions and media(s) covered ________________________________________________ 8 (ii) Issued by which Competent Authority _____________________________________________________________ 9 (iii) Issuance dates and duration of validity ___________________________________________________________ 10 (iv) Renewal requirements ________________________________________________________________________ 10 (v) Other standards and/or certificates (eg ISO 14000 Environmental Systems and Standards) _________________ 10 (vi) Key developments and any major changes in location and design, if any ________________________________ 10 (vii) Progress of the applicable environmental and social studies during the reporting period ___________________ 11 (viii) Findings of any regulatory inspections and/or audits ________________________________________________ 11

D. Incidents of Violations or Non-Compliance 12

(i) Recorded dates and responsible agencies _________________________________________________________ 12 (ii) Nature of non-compliance, including spills of hazardous materials and accidental releases _________________ 12 (iii) Violation or non-compliance based on what environmental standards and regulations ____________________ 12 (iv) Recorded dates and authorities _________________________________________________________________ 12 (v) Media, civil society organizations/NGOs, or community reactions (if any) _______________________________ 12 (vi) Corrective actions, deadlines, identification of responsible parties _____________________________________ 12 (vii) Status of implementation of Corrective Action Plan (CAP) ____________________________________________ 12 (viii) Incidents with security forces ___________________________________________________________________ 12

E. Incidents of Environmental, Occupational/Community Health and Safety Accidents 13

Contents


(i) Incident recorded dates and responsible agencies __________________________________________________ 13 (ii) Scale of damage and injury (if any) ______________________________________________________________ 13 (iii) Authorities in charge of investigation/recording ____________________________________________________ 13 (iv) Media or community reactions (if any) ___________________________________________________________ 14 (v) Corrective actions, deadlines, identification of responsible parties _____________________________________ 14

F. Land Acquisition and Involuntary Resettlement 15

(i) Progress in Implementation of the Resettlement Plan _______________________________________________ 15 a) General overview: Summary of successes and challenges ____________________________________________ 15 b) Status of component activities __________________________________________________________________ 15 c) Information disclosure, consultation, and participation activities ______________________________________ 16 d) Progress in implementation resources: staff, budget, and other resources ______________________________ 16 e) Resettlement-related grievances ________________________________________________________________ 16 (ii) Progress in Implementation of the SSCAR Corrective Action Plan ______________________________________ 16 (iii) Progress of the Implementation of External Monitor’s Recommendations/Corrective Actions _______________ 16 (iv) Forward Plan /Next Steps (for the next 6 months) ___________________________________________________________ 16

G. Indigenous People 17

(i) Summary of Project Activities and Social Context of the Indigenous Peoples Plan (IPP) _____________________ 17 (ii) Overview of the IPP Implementation _____________________________________________________________ 17 (iii) Progress in the implementation of the IPP components ______________________________________________ 17 a) Agricultural/Livelihood restoration ______________________________________________________________ 18 Assistance for women’s group (PKK) ____________________________________________________________ 18 b) Education __________________________________________________________________________________ 19 c) Health _____________________________________________________________________________________ 20 d) Infrastructure _______________________________________________________________________________ 21 e) Religious activities and local communities’ groups __________________________________________________ 22 The activities in this program were the assistance/support given to the churches/mosques and local communities’ activities in

the form of donations for the following activities: __________________________________________________ 22 a. Moslems’ religious activities such as Isra Miraj celebration event, Mosques’ construction, etc. ______________ 22 b. Christians’ religious activities such as Christmas celebration events, Churches construction and repair, etc. ____ 22 c. Various local communities’ groups activities in Independence Day events, North Tapanuli Regency anniversary

events, Sub District events, etc. _________________________________________________________________ 22 (iv) Summary of Noncompliance and Corrective Action Plans related to the IPP _____________________________ 22 (v) Progress in the Implementation of External Monitor’s Recommendations/Corrective Actions _______________ 22 (vi) Forward Plan/Next Steps for the next 6 months ____________________________________________________ 22

H. Local Recruitment, Labour Relations and Conditions 24

(i) Local labour recruitment commitments __________________________________________________________ 24 a) Project procedures for hiring ___________________________________________________________________ 24 b) Requirements on workers recruitment with information on origin of migrant or local workers (NIL, SIL, other

areas), position/work occupied, and with sex-disaggregation (SOL and contractors) _______________________ 24 c) Tracking of recruitment of women personnel (SOL and contractors)____________________________________ 24 (ii) Nature of labour dispute or grievance, including conflicts between groups ______________________________ 25 (iii) Legal requirements, permit conditions and renewal requirements _____________________________________ 25 (iv) Authorities in charge of investigation/recording ____________________________________________________ 25 (v) Media, civil society organizations/NGOs, or community reactions (if any) _______________________________ 25 (vi) Corrective actions, deadlines, identification of responsible parties _____________________________________ 25 (vii) Labour relations and living conditions for construction labour force ____________________________________ 25


I. Environmental Capacity 26

(i) Staff capacities in environmental management (as relevant) including number and suitability of environmental management personnel _______________________________________________________________________ 26

(ii) Degree of awareness of (a) environmental management, (b) health and safety, (c) environmental laws and regulations _________________________________________________________________________________ 26

(iii) Training conducted, if any, including the number of sessions, topics covered and percentage of workforce trained _____________________________________________________________________________________ 26

(iv) Needs assessment of environmental management capacity (as relevant) _______________________________ 26 (v) Awareness level of SOL and contractors’ field personnel _____________________________________________ 26

J. Social Management Capacity 28

(i) SOL Social team / External Relation Team– number, competence and adequacy of staff who are implementing the IPP and RP __________________________________________________________________________________ 28

(ii) Human resources department – number and adequacy of staff to monitor labour and working conditions ____ 28 (iii) Training conducted, if any, including the number of sessions, topics covered and percentage of workforce

trained _____________________________________________________________________________________ 28

K. Stakeholder Engagement/CSR Activities 29

(i) Details of consultation and participation activities (with gender disaggregated data), including, where applicable, local community, women’s issues and concerns, NGOs, cultural and social groups, leaseholders, and other stakeholders, including affected groups _________________________________________________________ 29

(ii) Details of approach/methodology on addressing the concerns and issues raised at consultations _______ 32 (iii) Describe efforts to promote community relations and local development for people of the project area ______ 32 (iv) Implementation of grievance mechanism _________________________________________________________ 32 a) Grievances recorded __________________________________________________________________________ 32 Number of grievances (SIL & NIL area) from 2013 to periode 31 December 2015 165 Cases (Mainly related with the impact of

project construction activities and some social cases). For July-December 2015 period, recorded grievance were 34 cases; 21 cases at NIL area & 13 casesat SIL area.Updated status of the recorded grievances are as follows: _ 32

b) Types of complaints and status of resolution ______________________________________________________ 32 c) Effectiveness of grievance mechanism ___________________________________________________________ 33 (v) Project procedures for acquisition of goods and services _____________________________________________ 33

L. Issues, Status of Implementation of Mitigation Measures in the Environmental Management Plan and

Compliance with Environmental Qualities and Standards (national and international, as relevant) and

Environmental and Social Requirements 34

(i) Air and Odour _______________________________________________________________________________ 34 (ii) Water (surface and ground water) _______________________________________________________________ 36 (iii) Waste generation and management _____________________________________________________________ 36 a) Wastewater _________________________________________________________________________________ 36 b) Solid and hazardous waste _____________________________________________________________________ 36 (iv) Biodiversity and habitat _______________________________________________________________________ 37 (v) Noise and vibration ___________________________________________________________________________ 38 (vi) Occupational health and safety _________________________________________________________________ 38 a) Training programs carried out __________________________________________________________________ 38 b) Emergency situations and response ______________________________________________________________ 39 (vii) Community health, safety and security ___________________________________________________________ 39 (viii) CO2 emissions by the Projects __________________________________________________________________ 39 (ix) Earthquake occurrences/incidences (seismicity) ____________________________________________________ 39


(x) Environmental Management Plan _______________________________________________________________ 40 (xi) Environmental Monitoring Results and assessments ________________________________________________ 40 (xii) Findings and recommendations of ISO 14001 and ISO 18001 audit _____________________________________ 40 (xiii) Problems encountered and action plan for the next reporting period ___________________________________ 40 (xiv) Other information and feedback ________________________________________________________________ 40

Appendixes 41

Appendix A. Workers’ Accommodation _____________________________________________________________________ 42 Appendix B. ADB Corrective Action Request (3 June 2015) ______________________________________________________ 54 Appendix C. Implemented IPP related activities that provide infrastructural, agricultural and health benefits to local

communities. _______________________________________________________________________________ 57 Appendix D. Potential Non-compliances and Recommended Actions _____________________________________________ 60 Appendix E. Supplementary ESIA for SIL-3n and NIL-3n Developments ____________________________________________ 62 Appendix F. Land Acquisition Plan for SIL-3n Pipeline __________________________________________________________ 63

Glossary 64

Tables

Table B.1: Status of Well Pad, as of December 2015 ______________________________________________________________ 6 Table C.1: Permit Status ____________________________________________________________________________________ 8 Table C.2: Inspection carried out by Indonesian Authorities (July to Dec 2015) ____________________________________ 11 Table E-1: Health and Safety Key Performance Indicators and Progress _____________________________________________ 13 Table F.1: Current status of Corrective Actions _________________________________________________________________ 16 Table H.1: Recruitment status as of January 2015 _______________________________________________________________ 24 Table K.1: Socialization (July-Dec 2015) _______________________________________________________________________ 30 Table L.1: Fuel consumption and electricity usage (July – December 2015) _______________________________________ 39 Table L.2: ADB Corrective Action (3 June 2015) _____________________________________________________________ 54 Table App.D-1: Potential Non-compliances and recommended actions __________________________________________ 60


1

(i) Location of project/business

The Sarulla geothermal project is located approximately 40km south of Tarutung on the side of the Trans Sumatera

Highway (Tarutung – Sipirok). Administratively, the project is located in Pahae Jae and Pahae Julu Districts, North

Tapanuli Regency, North Sumatera Province, Indonesia.

(ii) Nature

Sarulla Operations Limited (SOL) is an operation company established by the consortium of Itochu Corporation,

Kyushu Electric Power Co. Inc., Inpex Corporation, Ormat International Inc. and PT. Medco Power Indonesia Tbk. SOL

plans to develop geothermal power plants with a combined capacity of 330MW. The Project comprises development

of two geothermal fields within the Sarulla valley which include the following activities:

Development of Sarulla geothermal fields - namely Silangkitang (SIL) field and Namora I Langit (NIL) field;

Construction and operation of geothermal power plants, consisting of one (1) unit at SIL and two (2) units at

NIL, with each unit having a nominal capacity of 110 MW;

Construction of a combined length of approximately 14 km of 150 kV (high voltage) overhead transmission line:

– From SIL field to Perusahaan Listrik Negara (PLN) Substation

– From NIL field to PLN Substation

The main contractors involved in the Project’s construction are:

Hyundai Engineering and Construction (HDEC) – responsible for civil/construction works, with the scope of work

to covering project infrastructure and the power plant

Halliburton (HAL) – responsible for well drilling

(iii) Scale/size

SIL is located in Pahae Jae District, North Tapanuli Regency. The SIL field has three (3) existing well pads developed by

Unocal North Sumatera Geothermal (UNSG) in 1994 (see Figure A-1). The pads are identified as SIL 1, SIL 2 and SIL 3.

Well pads locations are described as follows:

SIL 1 - located in Silangkitang Village, about 50 metres from Sumatera Highways (Tarutung – Sipirok)

SIL 2 - located to the north-west of SIL 1, on the side of Aek Batang Toru which is part of Sigurung-gurung Village

SIL 3 - located to the south of SIL 1, in Pardomuan Nainggolan Village

Namora I Langit (NIL) field has three (3) existing well pads, developed in 1997. The pads are previously identified as

NIL 1, NIL 2 and NIL 3 which are located in the area close to Sibaganding, Lumban Jaean, and Simataniari villages. None

of these existing well pads will be utilised in the current Project design.

SOL had prepared six (6) new well pads, which are identified as NIL-1n, NIL-2n, WJR-1n, WJR-2n, WJP-1, and NIL-3n

(see Figure A-1). The description of the well pads locations are as follow:

NIL 1 - located to the southwest of Simantaniari village

NIL 2 - located to the west-southwest of Simantaniari village

WJR 1 - located to the north of Simantaniari village

WJR 2 - located to the south-east of Simantaniari village

WJP 1 - located to the south-west of Lumban Jaean village

A. Project/Business Name and Summary Information


2

NIL 3n – located to the South of Simataniari village and NIL Power plant


3

Figure A-1: SIL and NIL layout

Source: SOL Indigenous People Plan, June 2015


4

(iv) Date of construction/operation commencement

The construction for the power plant units commenced in 2nd quarter of 2014, and is scheduled to be completed in

1st quarter of 2018.

(v) Compliance

This report has been developed in reference to the following international standards and guidelines:

International Finance Corporation (IFC) Performance Standards;

World Bank Group’s Environmental, Health and Safety Guidelines;

Equator Principles;

Asian Development Bank (ADB) Safeguards; and

Japan Bank for International Cooperation (JBIC) Guidelines.

This report also demonstrates the Project’s compliance with:

The Project’s environmental and social management documentation, which include:

– Environmental and Social Impact Assessment (ESIA);

– Suplementary Environmental and Social Impact Assessment (SESIA) for SIL-3n and NIL 3n Development as

attached in Appendix E;

– Environmental and Social Management System (ESMS) version D;

– Environmental and Social Action Plan (ESAP);

– Supplementary Lenders Information Package (SLIP) version D; and

– Various Environmental and Social Management Plans (ESMP), including:

Occupational Health and Safety Plan

Emergency Preparedness and Response Plan

Labour Management Plan

Community Health and Safety Communication & Management Plan

Contractor(s)/Supplier Management Plan

Security Management Plan

Traffic Management Plan

Ambient Air & Noise Management Plan

GHG Management Strategy

Hydrogen Sulphide Monitoring Plan

Water Management Plan

Brine & Wastewater Management Plan

Drill Cuttings and Drill Fluids Management Plan

Erosion Management Plan

Solid and Hazardous Waste Management Plan

Land Contamination Management Plan

Hazardous Materials Management Plan

Biodiversity Action Plan

Biodiversity Offset Management Plan

Construction E&S Management, Monitoring and Reporting Plan

National requirement, which is represented by the Project’s AMDAL documentation whereby, Table VI-1: Matrix

of Environmental Management Plan (within the Addendum to ANDAL, RKL-RPL, 2013) covers construction related

activities; and

All relevant laws, guidelines, standards, treaties and agreements of Indonesia as detailed in the documents listed

above.


6

The information below covers the activities conducted until December 2015.

(i) Drilling Activities (exploratory and production wells)

Four (4) drilling rigs were deployed for the Project. As of December 2015, six (6) well pads had been drilled and three

(3) additional well pads were to be drilled. Six (6) of these well pads are located in NIL and the others located in SIL.

(ii) Well Pads

Seven (7) well pads had been constructed, two (2) well pads (SIL-3n and NIL-3n) were in construction process, and

two (2) well pads (SIL-2n and NIL-2n) have drilled. Half of the NIL laydown area is utilized as NIL-3n pad. The status of

the respective well pads as of December 2015 is shown in Table B.1.

Table B.1: Status of Well Pad, as of December 2015

Well Pad Status

SIL-1n Construction complete. Drilling ongoing.

SIL-2n Construction complete. Drilling complete.

SIL 3n Earthworks / pad prepartion. Site clearing for re-injection pipeline. Drilling to be started.

NIL-1n Construction complete. Drilling suspended.

NIL-2n Construction complete. Drilling complete.

WJR-1n Construction complete. Drilling suspended.

WJR-2n Construction complete. Drilling suspended.

WJP-1n Construction complete. Drilling to be started.

NIL-3n Construction complete. Drilling to be started.

(iii) SIL Geothermal power plant

The construction of SIL power plant were in progress. Ongoing activities included foundation works, buildings, steel

structure installation and equipment installation.

(iv) NIL Geothermal power plant

The construction of NIL power plant were in progress. Ongoing activities included site preparation and foundation

works.

(v) Access Road (main and internal)

Access roads to NIL-1n, NIL-2n, NIL-3n, WJR-1n, WJR-2n and WJP-1n had been completed, with 2,500m portion to

WJP-1n were yet to be covered with asphalt.

B. Update on the status of Design/Construction Activities of the Sarulla Geothermal Power Project


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(vi) Transmission Line 150kV

The construction of transmission line at SIL area were in progress. Four (4) towers were in foundation work stage.

The steel structure installation would commence in the next quarter.

(vii) Workers’ accommodation area and working area

Several workers accommodation camps were constructed for the Project as follows:

HDEC worker’s camp (located in SIL-D area) had been completed with a capacity of approximately 100 persons

HDEC’s sub-contractors (PT PP, Multi Adverindo, Powertech, Yeonhab) non-local worker’s camp are located

around the Project area with capacity of approximately 50 persons for each camp.

There are three (3) main camps for HAL and its subcontractors located at SIL-D, SIL-5 and NIL-3 respectively with

capacity for approximately 150 persons per camps.

Aside from main camps, HAL and its subcontractors also set up “mini” camps at each wellpad where drilling

activity is ongoing. The capacity of each mini camp is about 10 persons.

(viii) Laydown areas

The laydown areas at NIL and SIL are operated for material and equipment laydown.

(ix) Borrow areas

The borrow areas at NIL and SIL are not in use.

(x) Disposal areas

Disposal areas at NIL and SIL are in use.

(xi) Decommissioning (if applicable)

Not applicable at the time of writing.


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(i) Summary of permit conditions and media(s) covered

SOL actively monitors the status of license as summarised in Table C.1 below.

Table C.1: Permit Status

Permit / Licenses Issuing Authority

Status Planned Date

Date Obtained

Renewal required (Y/N). If Y, date required)

Note

Certificate of Right to Build (Serifikat Hak Guna Bangunan or SHGB) for the Project Site and the land upon which the Special Facilities are located

Land Office

SIL: All 7 SHGB issued (100%).

NIL: All 12 SHGB issued (100%).

Transmission Line: Application in process.

- 30 Apr 14 Y

(after 30 years)

-

Permanent Electricity Business License (Izin Usaha Penyediaan Tenaga Listrik or IUPTL)

Ministry of Energy and Mineral Resources (EBTKE)

Obtained. -

24 Dec 14 Y

(after 30 years)

-

Building Construction Permit (Izin Mendirikan Bangunan or IMB) for the Special Facilities

Local Government Done: 38 IMB -

09 Dec 14 N -

Permit to use public roads for heavy load transportation (ie Port and Haul Road Licenses) of the power plant Construction Contractor

Local Government

To be obtained each time mobilization takes place.

As required.

- N Contractor coordinates with government (police dept.) for their mobilisation program

Permit to operate certain equipment and tools (ie Operation Worthiness License) including but not limited to the following equipment/tools:

Pressure Vessel

Fire Extinguishers

Lightning Protection

Power Production

Machinery / Engine

Lifting Equipment and Transportation

Electrical Equipment

Ministry of Energy and Mineral Resources (EBTKE) and/or Ministry of Manpower (through Regional Office)

Permit is obtained each time the equipment is to be used

As required

- N Contractor has permits for equipment (Surat Kalayakan Pemakaian Peralatan,SKPP) from EBTKE.

C. Relevant Environmental Permits of Compliance Certificates


9

Permit / Licenses Issuing Authority

Status Planned Date

Date Obtained

Renewal required (Y/N). If Y, date required)

Note

(Geothermal) Installation Use Worthiness Certificate (Surat Kelayakan Penggunaan Instalasi or SKPI)

Directorate General of New Renewable Energy and Energy Conservation

To be obtained. As required.

- N SIL power plant in 2016.

NIL power plant in 2017 and 2018.

Certificate for Specialist Technician to operate heavy equipment of the power plant Construction Contractor

Ministry of Energy and Mineral Resources (Directorate General of New Renewable Energy and Energy Conservation)

To be obtained each time SOL employ Specialist Technician.

As required.

- N -

Hazardous and Poisonous Waste Storage Permit (Izin Penyimparnan Limbah B3)

Local Government

Obtained (both for HAL and HDEC)

- 13 July 2015 (HAL),

23 June 2015 (HDEC)

Y

(Every 5 years)

-

Operational Worthiness Certificate (Sertifikat Laik Operasi or SLO) of the Electricity Generation Facilities

Accredited Electrical Inspection Insitute (Lembaga Inspeksi Listrik Terakreditasi) / Directorate General of Electricity

To be obtained. - - Y

(every 10 years)

-

Purchasing and usage explosive permit

The Head of Police of Indonesia

Obtained. - 13 Nov 14 Y -

Ownership, Authorization and Storage Explosive Permit (P3)

The Head of Police of Indonesia

Obtained. - 11 Sept 2015 Y

(every 2 years)

-

Certificate for Specialist Technician to operate Electricity Generation Facilities

Electricity Technical Experts Association (Ikatan Ahli Teknik Ketenagalistrikan) / Directorate General of Electricity

To be obtained. As required.

- N -

Surface water Intake and usage permit (SIPAP)

Local Government

Obtained 15 Oct 15 (SIL area)

25 Jul 14 (NIL area)

Y

(Ever 5 years)

-

(ii) Issued by which Competent Authority

Please see Table C.1 above.


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(iii) Issuance dates and duration of validity

Issuance dates and duration of validity are included in Table C.1 above.

(iv) Renewal requirements

Renewal requirements are included in Table C.1 above.

(v) Other standards and/or certificates (eg ISO 14000 Environmental Systems and

Standards)

N/A.

(vi) Key developments and any major changes in location and design, if any

There are four new developments at Project area as follow:

1. SIL-3n wellpad

SIL-3n existing wellpad area expanded to accomodate a sump pit area intended to be used to store drill cutting

in mid 2015. This wellpad was developed as reinjection well area, due to insufficient capacity of the originally

proposed re-injection wells in SIL area. This wellpad is surrounded by plantation and farmland area. The access

road used is existing project road, and it was paved. This road is also used by the communities to reach public

facility (i.e. junior high school. The development of SIL-3n wellpad is not included in existing Amdal document.

Therefore, addendum of AMDAL document is required.

2. SIL-3n pipeline

SIL-3n pipeline connect the brine injection between SIL power plant and SIL-3n wellpad. This pipeline route cuts

accross the nearby paddy fields and plantations with a northwest-southwest orientation, to provide a relatively

direct route of connection between the power plant and the wellpad. The development of SIL-3n pipeline is not

included in existing Amdal document.

3. NIL-3n wellpad

The location was originally used as laydown area. Roughly half of this laydown area was converted to the NIL-3n

well pad, with capacity to accomodate up to 5 wells. This well pad was developed as reinjection well area. The

existing project roads will be utilised to access NIL-3n wellpad. Therefore, no new access roads are required to

be constructed. The development of NIL-3n is included in existing Amdal document.

4. NIL-3n pipeline

NIL-3n pipeline connect the brine injection between NIL power plant and NIL-3n well pad. No new land

acquisition is required for the re-injection pipeline, as the pipes will be laid alongside the existing project road,

which also serve as pipeline corridor. The development of NIL-3n pipeline is included in existing Amdal

document.

Suplementary ESIA and Land Acquisition Plan (“LAP”) for the developments above are attached as Appendix E and

Appendix F(*).

Unlike conventional power projects which tend to be less active during implementation stage, geothermal

developments always require real-time flexible optimization to accommodate updated drilling plans in quick response

to what happens underground from moment to moment. SOL decisions to timely undertake the development of SIL-

3 and NIL-3 pads were essential for due completion of the steamfield development without material delay in startup


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as it turned out in the middle of implementation stage that overall reinjection capacities developed at other well pads

(originally planned) resulted in less than projected.

(*) This documents was prepared after the land acquisition for the SIL-3n pipeline was done. With regard to meeting with

ADB on 25 May 2016, SOL realized that no such ESIA and LAP was prepared for SIL-3n and NIL-3n well pads. Therefore, SOL

undertook preparation of Supplementary ESIA for SIL-3n and NIL-3n and LAP for SIL-3n pipeline in July 2016 to comply with

the documentation requirements. These additional documents were prepared in 2016 and submitted to ADB as part of this

report which was being finalized. Upon receiving this monitoring report in February 2017, ADB reviewed the LAP for land

acquisition completed in 2015. ADB noted that these were land acquisition completion reports and therefore requested SOL

to arrange an audit by the external monitor of all land acquisition completed prior to final approval by ADB of relevant LAP.

(vii) Progress of the applicable environmental and social studies during the

reporting period

Currently, SOL complies with the RKL-RPL reporting requirements. Prescribed quarterly monitoring for surface water,

ground water, noise and H2S have been carried out. RKL-RPL reports have been submitted to the authorities every six

months.

(viii) Findings of any regulatory inspections and/or audits

A summary of authority inspections (for this monitoring period) is shown in Table C.2.

Table C.2: Inspection carried out by Indonesian Authorities (July to Dec 2015)

Date Inspection Authority

27-Jul-15 Drilling installation WJR1n-1 EBTKE

02-Aug-15 Drilling installation SIL1n-4 EBTKE

20-Aug-15 Drilling installation SIL2n-1 EBTKE

25-Aug-15 Environmentak Inspection EBTKE

04-Sept-15 Drilling installation NIL2n-6 EBTKE

07-Oct-15 Drilling installation SIL2n-2 EBTKE

06-Nov-15 Labour Inspection EBTKE

08-Nov-15 Drilling installation SIL2n-3 EBTKE

08-Nov-15 Drilling installation NIL2n-2 EBTKE

09-Nov-15 Drilling installation SIL1n-1 EBTKE

10-Nov-15 Labour Inspection Disnakertrans

12-Nov-15 Rough Terrain Crane 25 Ton&35 Ton EBTKE

08-Dec-15 Crawler Crane 250 Ton EBTKE

23-Dec-15 Drilling installation SIL1n-2 EBTKE

Note: EBTKE stands for the Indonesia’s Ministry of Energy and Mineral Resources.


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(i) Recorded dates and responsible agencies

The list of potential non-compliances and recommended actions to be taken is shown in Appendix D.

(ii) Nature of non-compliance, including spills of hazardous materials and

accidental releases

Please refer to Appendix D for further information.

(iii) Violation or non-compliance based on what environmental standards and

regulations

Please refer to Appendix D.

(iv) Recorded dates and authorities

Please refer to Appendix D.

(v) Media, civil society organizations/NGOs, or community reactions (if any)

None

(vi) Corrective actions, deadlines, identification of responsible parties

ADB issued a list of Corrective Action Request consisting of 14 items in 13 May 2015, following their March 2015 visit.

SOL submitted a response to ADB on 3 June 2015 (see Appendix B).

Please refer to Appendix D for the list of potential non-compliances and recommended actions to be taken.

(vii) Status of implementation of Corrective Action Plan (CAP)

Please refer to Appendix B.

(viii) Incidents with security forces

No incidents with security forces were reported.

D. Incidents of Violations or Non-Compliance


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(i) Incident recorded dates and responsible agencies

In compliance with the applicable occupational health and safety regulations, SOL submits reports to EBTKE for major

incidents or accidents (i.e. of scale and nature as prescribed within regulations) that occur within the project site.

Table E.1 below shows the health and safety incident statistics of the Project to the date of this report.

Table E-1: Health and Safety Key Performance Indicators and Progress

Item July '

2015

Aug '

2015

Sept '

2015

Oct '

2015

Nov '

2015

Dec '

2015

Cumulative

To Date

Total Man-hours Worked 515,878 576,786 634,842 638,200 660,824 672,884 8,202,400

Safe Man-hours Worked

(without accident) 515,878 576,786 634,842 638,200 660,824 672,884 4,456,338

Lost Time Injury (LTI) 0 0 0 0 0 0 3

Fatality 0 0 0 0 0 0 0

Permanent Total Disability 0 0 0 0 0 0 0

Permanent Partial Disability 0 0 0 0 0 0 0

Lost Workday Case (LWC) 1 1 0 0 1 0 3

Injurious Non-LTI 1 3 1 1 1 1 19

Medical Treatment Case (MTC) 0 2 1 0 0 0 9

First Aid Case (FAC) 1 1 0 1 1 1 10

Non-Injurious 6 6 2 1 1 0 47

Dangerous Occurrence 0 0 0 0 0 0 2

Near Miss 2 2 1 0 1 0 12

Fire Incident 0 1 0 0 0 0 1

Occupational Illnesses and Industrial

Diseases 0 0 0 0 0 0 0

Road Accident 4 3 1 0 1 0 28

Property Damage / Loss 0 0 0 1 0 0 1

Oil Spill/Environmental Incident 0 0 0 0 0 0 3

(ii) Scale of damage and injury (if any)

Please refer to Table E-1.

(iii) Authorities in charge of investigation/recording

EBTKE has responsibility to investigating health and safety-related incidents or accidents.

E. Incidents of Environmental, Occupational/Community Health and Safety Accidents


14

(iv) Media or community reactions (if any)

No media or community reactions have been reported.

(v) Corrective actions, deadlines, identification of responsible parties

Please refer to Appendix B.


15

(i) Progress in Implementation of the Resettlement Plan

a) General overview: Summary of successes and challenges

During this period, approximately 22,000 m2 land was acquired on 19th November 2015 for the purposes of brine injection line from SIL power plant to SIL-3n due to requirements for additional reinjection capacity. Land Acquisition Plan for SIL-3n pipeline is attached as Appendix F.

On 22nd December 2015, 4,351 m2 land was also acquired for the tower foot print at SIL area due to relocation of PLN’s substation.

b) Status of component activities

The status of component activities up to the reporting period can be seen below.

Table F.1: Land Acquisition for Project Site

Progress of Land Acquisition

Number of Area/People Subject for Land Acquisition

Number of Area/People completed

Area (m2) People Area (m2) People

SIL Area

Power plant 66,433 13 66,433 13

Wellpad, AR & pipeline 89,722 96 89,722 96

Other 63,348 27 63,348 27

Total 219,503 136 219,503 136

NIL Area

Power plant & AR 228,113 25 228,113 25

Wellpad, AR & pipeline 426,234 163 426,234 163

Other 331,673 76 330,219 74

Total 986,020 264 984,566 262

Table F.2: Land Acquisition for Transmission Line

Progress of Land Acquisition

Number of Area/People Subject for Land Acquisition

Number of Area/People completed

Area (m2) People Area (m2) People

Tower Foot Print 40,273 57 40,273 57

T-Line (ROW) 191,319 200 191,319 200

F. Land Acquisition and Involuntary Resettlement


16

c) Information disclosure, consultation, and participation activities

Public consultation and information disclosure were conducted during the land acquisition process. The consultation

activities were conducted in a culturally appropriate manner (using both Bahasa Indonesia and Batak language) with

Batak facilitators (inclusive of females). Land owners were well informed of the land acquisition process and SOL’s

compensation policy, prior to the signing of land acquisition agreements. All consultation process and agreements are

documented well.

d) Progress in implementation resources: staff, budget, and other resources

The land acquisition process was undertaken by SOL. All documentation required in the LA process including

socialization minutes, attendance, land price agreement, and photos are recorded. Particular of ROW acquired, SOL

is using the survey and appraisal result from independent third party Appraiser Company responsible for surveying

and appraising easement payment for the TL ROW which was assigned by SOL in prior TL ROW compensation payment

process.

e) Resettlement-related grievances

Currently, there is no grievance with regards to resettlement has been logged.

(ii) Progress in Implementation of the SSCAR Corrective Action Plan

The progress of implementation of the SSCAR Corrective Action Plan is detailed in the following Table F.1.

Table F.1: Current status of Corrective Actions

Issues/Topics Corrective Actions Deliverable Timeline Current Status

Monitoring and Evaluation

SOL should conduct internal monitoring. Internal Monitoring Report 2015

Ongoing

External monitoring (submission of semi-annual reports)

External Monitoring Report

2015 RKL/RPL done

Post-resettlement evaluation (e.g. 6 months, 18 months, 36 months after land acquisition.

Evaluation Report 2018 To be started

(iii) Progress of the Implementation of External Monitor’s

Recommendations/Corrective Actions

N/A

(iv) Forward Plan /Next Steps (for the next 6 months)

The land acquisition process of additional land for SIL3 pipeline and Transmission Line ROW Easement Payment 08-

substation & 27-Substation. The payment was planned to be conducted by the end of February 2016.


17

(i) Summary of Project Activities and Social Context of the Indigenous Peoples

Plan (IPP)

On the second half of 2015, SOL continued implementing the ISP (Integrated Social Program) as detailed out in the

IPP document. The programs are parts of ISP Short term program (2015 – 2017). Activities are focused on education,

health, agricultural training and assistance for religious and communities’ organization events.

(ii) Overview of the IPP Implementation

ISP activities implemented during the period of July – Dec 2015 are tailored and in accordance with the needs

assessment that had been conducted. Process and schedule of implementation were following 2015 work plan which

is explained in the IPP document. However, some schedules have been shifted due to communities’ activities during

the period of implementation and also some other necessary considerations from the local government.

Prior to implementation of each program focus, consultation and coordination with related government agencies

including Kecamatan (sub district office) of Pahae Julu (NIL) and Pahae Jae (SIL) area as well as related government

offices were conducted such as education office at regency and sub district level, health office at regency and sub

district level, Kantor Ketahanan Pangan (food security office) while at village level, coordination were done with head

of villages and communities’ elders. This coordination is important to ensure that all related stakeholders are well

informed of the programs and their objectives.

Table G-1 Implemented programs in the second half of 2015 summary

No Program Focus Activities

1 Agriculture a. Training on making of organic fertilizer and animal feed

b. Assistance for farmers’ group - Organic fertilizer and animal feed machine processor

2 Education a. Free English course “English is Fun” for Primary & Elementary students

b. Improvement of 1 unit of school with the most severe condition

c. Assistance for students & schools (instalment of electricity to 2 Elementary schools)

3 Health Assistance for Elderly Posyandu program (Posyandu Lansia) – provision of vitamins & additional

nutritional food through UPT Kesehatan (Health Office) & village midwife

4 Infrastructure Clean water piping (NIL area- Simataniar, Sibaganding & Lumban Jaean Village)

5 Religious &

communities’

activities

Donations for Christmas’ celebration events, Churches, Mosques and communities’ activities

at the village and Sub District Level

Some of the programs are still ongoing and continued to 2016 such as education, health & agricultural activities. The

areas covered are as committed in the IPP document, they are 6 villages in SIL area and 5 villages in NIL area. In

addition to this, SOL also did some assistance program for the Kecamatan level such as for Village Disaster Response

unit organization by donating some equipment which could be used by the villages in Pahae Jae Sub district as

required.

(iii) Progress in the implementation of the IPP components

The activities which is explained in the earlier section are fully implemented and closely monitored by SOL’s social

team. The team has to ensure that the objectives of each programs are met in accordance with the ISP set forth in

the IPP document.

G. Indigenous People


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a) Agricultural/Livelihood restoration

Agriculture training & assistance for farmers’ group

The main source of livelihood of local communities in both SIL & NIL area are from agricultural activities and as a

response to the assessment needs’ result, SOL has been conducting training for farmers’ groups in 2 villages in Pahae

Jae (SIL area) namely Silangkitang, Sigurung-gurung. Meanwhile for other remaining affected villages, the training

schedule was coordinated and consulted with each village. It will be continued to the first semester of 2016. Type of

training can be different for each village since each farmers’ group needs is also different.

This program have two main parts: the training that was focused on making of organic fertilizer and animal feed and

the provision of 1 unit of organic fertilizer and animal feed machine processor for each village. This type of training is

selected based on some considerations such as:

a. Farmers in the area are still heavily dependent on chemical fertilizer which is quite expensive. With this

program, we are expecting that the farmers could produce their own organic fertilizer with the materials

from that can be found in their own surroundings. The use of organic fertilizer will also help to boost better

productivity and improve the condition of the soil. This mechanism will help to reduce the production cost

particularly the fertilizer which eventually will improve their productivity.

b. It is in line with one of North Tapanuli Local Government vision and mission that is to improve the productivity

of farming activities and make North Tapanuli as the for food security especially with paddy farming.

c. SOL is in partnership with North Tapanuli Food Security Office to execute the training. The

machine/processor was invented by North Tapanuli Food Security Office but it is still not widely socialized

and used in the villages. Therefore, this training could help to promote the local product in the affected

villages and also support the local government program in agriculture.

It is expected that the farmers will put the knowledge and skill received from the training into practice since they were

not only given the knowledge but also the means for practice that is one unit of organic fertilizer and animal feed

machine processor. It is handed over to the village upon the completion of the training and the use will be managed

by the village/farmers’ group headed by the head of village.

The targeted beneficiaries in this training were the farmers’ groups which included the land owners and non- land

owners. Participants attended were consisting of both males and females. Photos documentation on this activity can

be found in appendix C.

Table G-2 Implemented agriculture training in SIL area

No Village Training date Hand over - 1 unit of machine of organic

fertilizer and animal feed

Remarks

1 Silangkitang 11 Nov 2015 30 Nov 2015 Done

2 Sigurung-gurung 13 Nov 2015 30 Nov 2015 Done

Assistance for women’s group (PKK)

Program which is focused on women will be implemented through the existing women’s group, PKK, in each village.

The first step taken for this program was the assistance for PKK group in Simataniari village in the form of provision

of uniform in December 2015. This is part of the ISP plan and proposed by the PKK groups. Training and empowerment

program is being planned and discussed through PKK at the Kecamatan and village level as part of the livelihood

restoration program to be done in 2016.


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b) Education

Activities which is implemented in education program are still parts of the scheduled plan and have been coordinated

with the Education Office at the Regency level and Education Technical Unit Service Office (Unit Pelayanan Teknis

Pendidikan) at the Sub-District Level.

There are four main activities that have been carried out:

1. “English is Fun” program, a free English course for primary and elementary level for the schools located near

affected villages (around SIL & NIL area). During the needs assessment, it was proposed by the local communities.

SOL also sees it as a community need because currently many of the students in the area have very limited

knowledge in English especially at the primary level since English is not taught in those school. Regarding this

condition, it raise difficulty for primary level students to continue to elementary schools because they will start

English subject at the elementary level while they do not have any basis on English.

Thus, SOL intended this program to focus on primary and elementary students. The objectives of the program are

basically to introduce English language to the students and to give foundations to learn the language when they

continue to higher level of education.

For the first period, the program started for the three months (Nov – Dec 2015) and after that SOL will evaluate

its effectiveness and the response of the students on the program itself. Continuation of the program will be based

on the evaluation, however, considering the importance of the program, SOL intends to continue the program

throughout 2016 with close monitoring.

SOL is engaging JAC, an English Course institution located in Sarulla in this program. This is the only English course

available in both Pahae Jae (SIL) and Pahae Julu (NIL) area.

This program is highly appreciated by the Education Technical Unit Service Office and they expect that this program

could be done continuously for the students.

Table G-3 English is Fun program implementation

No Area Schools Schedule Remarks

1 SIL SD Pardamean Nainggolan Monday & Thursday Ongoing

SD Silangkitang Monday & Thursday Ongoing

SMP N Pahae Jae Wednesday & Friday Ongoing

2 NIL SD Simataniari Tuesday & Saturday Ongoing

SD Sibaganding Tuesday Ongoing

SD Lumban Jaean Saturday Ongoing

SD Janji Natogu – Onan Hasang Tuesday & Saturday Ongoing

2. Assistance for the improvement of 1 unit school with the most severe facilities condition in NIL area, SD INPRES

which is located in Janji Natogu village. The school has been waiting for the assistance from the government but

it hasn’t been realized due to some other priorities. The school also submitted their proposal for the assistance to

SOL. Prior to implementation, to determine the priority and decision on which school should receive the assistance,

SOL’s social team did inspection to the schools around project area. The result showed that SD Janji Natogu should

be prioritized for the assistance.


20

The assistance was giving for the roof reparation in one classroom, classroom partition, and provision of chairs for

students. It was started the end of November and completed by early December 2015. The handover of the

assistance was attended by Head of Sub District, Head of Education Technical Unit Service Office, and School’s

committee

Figure G-1 Repair of facilities – SD INPRES Janji Natogu (Nov – Dec 2015)

3. Assistance for the students with best achievement in both SIL (Pahae Jae Sub District) and NIL (Pahae Julu). It did

at the ceremony of Indonesian Independence day, 17th August 2015. The targeted beneficiaries for this activity

were students at the primary (SD), Elementary (SMP), up to Senior High School (SMA) from all the villages in both

SIL & NIL, thus the coverage is all the villages in both Sub Districts:

Pahae Julu (NIL area) : 23 Elementary schools, 5 Junior High Schools & 3 Senior High Schools

Pahae Jae (SIL area) : 14 Elementary schools, 3 Junior Highs Schools & 4 Senior High Schools

4. Installation of electricity in two Elementary Schools; SMP 2 Pahae Jae (SIL area) and SMP 3 Pahae Julu (NIL area).

This is based on request from the schools because some of the the classrooms have not access to electricity while

electricity is needed for the teaching and learning activities in the class. The instalment completed in early

December 2015.

c) Health

The focus of health program is to continue the existing elderly program. It is named “Posyandu Lansia” (Elderly Health

service post) which was done in July 2015 for 1 village, Silangkitang at SIL area. The assistance program continued and

has been started at 11 affected villages at SIL & NIL since November 2015 to date.

Posyandu Lansia is actually part of the Health Office programs, but based on the consultation with the Health Office

Unit at the Sub District level, this program was quite stagnant and not really intensively implemented by the village

midwife. Despite of those condition, there was actually a need for the program to be carried considering a quite large

number of elderly people and most of them were living by themselves or with their spouse with no one taking care

or checking & monitoring their health condition regularly. It is a phenomenon that commonly exist in the villages in

Indonesia. Productive age adults usually leave the village to work in the cities while their children leave with their

grandparents.

Health assistance for elderly group was also one of the activities proposed by the local communities, therefore SOL

has been cooperating with the Health Office at the District level to implementing this program. SOL’s objective are to

strengthen and revitalize “Posyandu Lansia” by facilititating the program in the form of provision of vitamins and

nutritional food (monthly) to the elderly groups through the village midwives.

Roof condition before repair

Roof condition after repair

Repair of classroom partition


21

This program is conducted regularly by the village midwives under the supervision of the Health Office (UPT

Kesehatan- Sub District). Aside from the provision of vitamin and additional nutritional food, the elderly group also

give a routine activity called “Senam Lansia” or Elderly aerobic program by the village midwives.

Figure G-2 Posyandu Lansia activity in (November 2015 – to date)

Through this program, health condition of elderly people are expected to improve and they can be more enthusiastic

in their daily activities. The routine meeting and check- up are one of the social tools for the elderly group to share

their issues and also build up their confidence which will positively impact their mind and physical condition.

The beneficiaries of the programs are particularly focused on:

a. Vulnerable land owners who are included in the elderly groups and it’s about 80% of the vulnerable group

and they are unable to working usch as farming activities.

b. Non land owners – Elderly people

d) Infrastructure

Implementation of clean water piping supply for three villages in NIL area (Simataniari, Sibaganding & Lumban

Jaean) were the focus of infrastructure program in this reporting period. Main activities are including:

a) Completion of the piping work in Simataniari village with approximately 3 km length;

b) Install clean water piping from the source to the two villages with approximately 9 km length;

c) Construct concrete water tank supply at the water source and the village

The activity in Simataniari is part of the ISP program and was proposed by the village during the needs assessment.

As of Sibaganding and Lumban Jaean village, the activity is part of ISP program and technical action plan of the

grievance mechanism. Therefore, the program was involving HAL and Hyundai. In this particular program, both

main contractors were contributing some numbers of the required pipes (based on request from SOL) and funding

for the execution work which is given to the village.

Progress of the activities can be seen in below table.

Table G-4 Progress of clean water piping supply program

No Village Activity Progress

1 Simataniari Pipes installation Done, handed over to the village on October

2015 Construction of concrete water tank at

the source & the village

2 Lumban Jaean Pipes installation Ongoing, 60 %

Simataniari village

Sibaganding village

Pardamean Nainggolan village


22

No Village Activity Progress

Construction of concrete water tank at


Ongoing, 50%

3 Sibaganding Pipes installation Ongoing, 30%

Construction of concrete water tank at


Ongoing, 40%

Based on discussion and agreement with the village, the piping work was executed by the village with mutual work or

“gotong-royong” scheme. SOL and its main contractors were providing all the materials, major equipment required

and fund to carry out the work, and then the poople from the villages were fully undertake the construction.

SOL, in this case, was monitoring the construction progress to ensure that the program was well implemented by the

village. The targeted schedule for the piping work completion in Sibaganding and Lumban Jaean is before the end of

2015, however, due to some activities in the village such as preparation of Head of village election, Government

programs, and also Christmas events, the construction have been delayed especially for Sibaganding village and target

of completion was shifted to first quarter of 2016.

e) Religious activities and local communities’ groups

The activities in this program were the assistance/support given to the churches/mosques and local communities’

activities in the form of donations for the following activities:

a. Moslems’ religious activities such as Isra Miraj celebration event, Mosques’ construction, etc.

b. Christians’ religious activities such as Christmas celebration events, Churches construction and repair, etc.

c. Various local communities’ groups activities in Independence Day events, North Tapanuli Regency anniversary

events, Sub District events, etc.

The assistance is given based on the proposals submitted by related local communities or religious’ organization to

SOL office.

(iv) Summary of Noncompliance and Corrective Action Plans related to the IPP

N/A.

(v) Progress in the Implementation of External Monitor’s

Recommendations/Corrective Actions

N/A

(vi) Forward Plan/Next Steps for the next 6 months

SOL will continue to implementing some of the current programs in the first half of 2016 besides the other programs

which will be further coordinated with the villages, local government and related stakeholders.

Details of activities to be carried out for the next 6 months can be found in the following table.


23

Table G-5 Program plan for first half 2016

No Program / Activities

Year 2016

Q 1 Q2

1 2 3 4 5 6

1 Coordination with Local Government and related stakeholders on 2016

program planning

2 Employment - Recruitment of labors from Land owners in accordance with

skill & capabilities

3 Infrastructure - Improvement of proposed public facilities

3a Completion of piping program in Sibaganding & Lumban Jaean

3b Implementation of infrastructure improvement for based on needs priorities

4 Education

4a Evaluation on the implementation of English course for Elementary and

Junior High School at SIL & NIL area

4b English course for Elementary and Junior High School

4c Implementation of Scholarship program at SIL & NIL

5 Agricultural/Livelihood Restoration

5a Assistance for the most vulnerable land owners (with remaining land less

than 10%)

5b Agricultural/Skill training – implementation of training for farmers &

women’s group

6 Health

6a Capacity building for Posyandu cadre in 11 affected villages

6b Support for village health program (Posyandu Balita & Posyandu Manula)

7 Religious Activities, Cultural & Art


24

(i) Local labour recruitment commitments

SOL is committed to prioritize use of local labour resources in accordance with the Labour Management Plan. The

Contractors - whose plans are aligned with SOL’s - share a similar commitment and approach in this aspect.

a) Project procedures for hiring

The community has high expectations in relation to gaining employment with the Project. In response, job boards

have been deployed in each village. This increases the transparency of the hiring process, as well as reduces the

possibility that some villagers are unaware of available job openings.

b) Requirements on workers recruitment with information on origin of migrant or

local workers (NIL, SIL, other areas), position/work occupied, and with sex-

disaggregation (SOL and contractors)

The Project actively monitors the recruitment status of the Indonesian, Batak and women workers. Please see Table

H.1 below for the labour breakdown of the Project.

Table H.1: Recruitment status as of January 2015

Item SOL HAL HDEC

Labour

Skilled 120 735 643

Semi-skilled - 106 838

Unskilled 3 175 425

Total 123 1.017 1906

Batak Women From Project Affected Area

Batak Women From Project Affected Area 13 47 46

Indonesian/Foreign Manpower

Local 30 403 832

Indonesian (other than local people) 71 599 1012

Foreigner 22 15 62

Women Employed

Women Employed 26 49 50

c) Tracking of recruitment of women personnel (SOL and contractors)

The current status of the women personnel recruitment for SOL and its contractors is shown in Table H.1 above.

H. Local Recruitment, Labour Relations and Conditions


25

(ii) Nature of labour dispute or grievance, including conflicts between groups

No labour disputes or grievances have been reported.

(iii) Legal requirements, permit conditions and renewal requirements

Please see Table C.1.

(iv) Authorities in charge of investigation/recording


(v) Media, civil society organizations/NGOs, or community reactions (if any)


(vi) Corrective actions, deadlines, identification of responsible parties


(vii) Labour relations and living conditions for construction labour force

There are currently thirteen (13) operational workers camps. Please refer to Appendix A for description on each

respective camp

SOL and its contractor are mindful of potential social tensions associated with community pressure due to the influx

of workers. SOL is keeping track of the labour accommodation situation, and would progressively increase workers’

camp’s capacity as necessary.


26

(i) Staff capacities in environmental management (as relevant) including number

and suitability of environmental management personnel

With regards to SOL’s staff capacity, our environmental employees are such as:

One (1) Health, Safety and Environment (HSE) Manager

Two (2) Environmental Engineers

Two (2) Environmental Officer

Two (2) Health and Safety (H&S) Engineer

One (1) OHS Officer

One (1) Administrator.

ESMS Engineer effectively resigned on 15 December 2015

In addition, SOL also engaged environmental consultants and NGOs, who have expertise in various specialised areas,

to support SOL’s environmental management and medical team (2 Back to Back Doctor, 6 Back to Back Paramedic) to

support related OHS management plan.

(ii) Degree of awareness of (a) environmental management, (b) health and safety,

(c) environmental laws and regulations

As part of the Project financing requirements, SOL is required to put in place a comprehensive ESMS to govern the

Project’s development and activities. One of the key component in ESMS is the “Organisational Capacity &

Competency”, which states that the key project personnel should be highly aware and sufficiently competent to

implement the ESMS.

(iii) Training conducted, if any, including the number of sessions, topics covered

and percentage of workforce trained

Please refer to part (v)(a) and (v)(b) below.

(iv) Needs assessment of environmental management capacity (as relevant)

No particular needs of improving environmental management capacity currently identified.

(v) Awareness level of SOL and contractors’ field personnel

a) Training conducted on environmental management, health and safety,

environmental laws and regulations, emergency response, preventative

measures

SOL and its contractors regularly conduct training with the topics such as:

Basic safety training

First aid

I. Environmental Capacity


27

Use of fire extinguisher and fire fighting

Permit to work

Emergency drill evacuation

Use of Self Contained Breathing Apparatus (SCBA)

Socialization of the biodiversity action plan

Food handling

H2S induction

Spill response

Hazardous waste management

Devensive Driver Training (DDT)

Working at Height Training

Fire FightingTraining

b) Number of SOL and contractors’ staff trained

Almost all of the relevant staff attended the training program with topic mentioned above.


28

(i) SOL Social team / External Relation Team– number, competence and

adequacy of staff who are implementing the IPP and RP

SOL employs a Site Admin Manager who supervises the ER field team as well as the CSR team.

The ER field team consist of one (1) ER supervisor, one (1) (female) ER admin and six (6) ER staff/personnel (consisting

of one female and five male).

The CSR team consists of one (1) (female) CSR Supervisor and two (2) (male) CSR staff.

(ii) Human resources department – number and adequacy of staff to monitor

labour and working conditions

SOL employs a Human Resources and General Affairs Manager (HR & GA Manager), a Senior Human Resources Officer

and a Human Resources staff member.

(iii) Training conducted, if any, including the number of sessions, topics covered

and percentage of workforce trained

No social specific training was conducted.

J. Social Management Capacity


29

(i) Details of consultation and participation activities (with gender disaggregated

data), including, where applicable, local community, women’s issues and

concerns, NGOs, cultural and social groups, leaseholders, and other

stakeholders, including affected groups

SOL conducts stakeholders’ engagement through close communication and coordination with various stakeholders

including the affected communities. Some of the means of communications are the village monthly meeting, bi-

weekly meeting with the main contractors/sub-contractors ER team and also ad-hoc meetings/coordination with the

related local government offices/agencies.

The activities also includes socialization to the villages prior to commencement of project activities and progress of

project activities to the local communities.

Full listing of socialisation and stakeholder engagement activities carried out during the reporting period are as

presented in Table K.1 below.

K. Stakeholder Engagement/CSR Activities

30

Safeguards and Social Monitoring Report 3rd Reporting (Monitoring period: January-June, 2015)

Table K.1: Socialization (July-Dec 2015)

Activities Date Stakeholders/ attendees Description

Praying and blessing ceremony before spud in at

WJR 1

28 July 2015 Local communities, Head of Villages, Community

elders, USPIKA, Hal liburton , EPI, & ER SOL

Message disseminated thru praying to get local people

(elders, priest and local leader) blessing for the spud in.

Drilling cutting storage socialization at SIL 3

31 July 2015 Local communities, Head of Villages, Community elders, USPIKA, Halliburton, & ER SOL

Communicating the activity at SIL 3 location for drilling

cutting storage

Village monthly meeting at Lumban Jaean & Silangkitang Village

08 July 2015 Local communities, Head of Villages, Community elders, USPIKA, SOL, HALLIBURTON, HYUNDAI

Explanation to local communities about Project Progress & Labor

Village monthly meeting at Simataniari Village 09 July 2015 Local communities, Head of Villages, Community elders, USPIKA, SOL, HALLIBURTON, HYUNDAI


Village monthly meeting at Sigurung-gurung Village



Village monthly meeting at Pardomuan Nainggolan Village



Village monthly meeting at Sibanganding Village 21 July 2015 Local communities, Head of Villages, Community elders, USPIKA, SOL, HALLIBURTON, HYUNDAI


Village monthly meeting at Simataniari, Lumban Jaean and Sibaganding Village

18 Sept 2015 Local communities, Head of Villages, Community elders, USPIKA, SOL, HALLIBURTON, HYUNDAI, Iskandar S, Rangga W.

Explanation to local communities about Stability of savety and labor

Praying and blessing ceremony before spud in at

WJR 1

28 July 2015 Local communities, Head of Villages, Community elders, USPIKA, Halliburton , EPI, & ER SOL

Message disseminated thru praying to get local people

(elders, priest and local leader) blessing for the spud in.

SIL1N Flow Test Socialization & Praying

Ceremony

13 Nov 2015 Local communities, Head of Villages, Community elders, USPIKA, SOL, HALLIBURTON, TCI, & Security team

Informing the community about the well test process

and impact to build the safety awareness regarding the

well test in SIL area

Socializations Brine Injections Line SIL 1 – SIL 3 October 15, 2015 Local communities, Head of Villages, Community elders, USPIKA, SOL & Security team

Informing to landowners about socialization the Land

Acquisitions for brine injections line SIL 1-SIL 3 area

Negotiated Socializations the price of the land

Brine Injections Line SIL 1 – SIL 3

October 21, 2015 Local communities, Head of Villages, Community elders, USPIKA, SOL & Security team

Informing to landowners about Negotiated

Socializations the price of the land Brine Injections Line

SIL 1 – SIL 3

Socializations Grievance Technical Solution about

Widening Drainage Siasimun River

June 15, 2015 Local communities, Head of Villages, Community elders, USPIKA, SOL & Security team

Informing to landowners about Socialization Grievance

Technical Solution for Widening Drainage Siasimun River

(NIL area)

31


Activities Date Stakeholders/ attendees Description

Socialization on Hyundai of Subcontractors (PT

DAEAH)

December 23, 2015 Local communities, Head of Villages, Community elders, USPIKA, Hyundai, PT DAEAH & ER SOL

Explanation to local communities about the paiting and

insullation work that will be conducted by the Hyundai’s

subcontractors (PT DAEAH)


32

(ii) Details of approach/methodology on addressing the concerns and issues

raised at consultations

Socialization activities were conducted in both Bahasa Indonesia and Batak by SOL. Following a presentation on the

Project, there was a question and answer (Q&A) session during which comments and queries can be raised. When

appropriate and possible, some of these were given responses immediately, while others were logged and may

require follow up. The Q&A session were then followed by the signing of the attendance list. Comments and queries

along with SOL’s responses during these sessions were summarised and recorded for future reference.

(iii) Describe efforts to promote community relations and local development for

people of the project area

In order to have effective communication and strengthen the coordination between all related stakeholders, SOL is

putting more efforts to build communication channels and tools such as:

a. Village monthly meeting

b. Involvement of local government elements such Camat (Head of Sub District), MUSPIKA (district leader forum),

village elders and related government offices in the socializations or meetings with local communities

c. Partnership & cooperation with local government offices in the ISP activity such as Kantor Badan Ketahanan Pangan

in the agriculture program, Health Office Unit at the Kecamatan Level in the Health program, Local institution in the

Education program and also Education Office Unit.

d. Mass media coverage on programs/activities that have been performed by SOL and also participation in

communities’/government events with extended coverage which will help to socialize SOL’s project and existence and

its activities to a broader communities at the village, Sub district and Regency level.

(iv) Implementation of grievance mechanism

a) Grievances recorded

Number of grievances (SIL & NIL area) from 2013 to periode 31 December 2015 165 Cases (Mainly related with the

impact of project construction activities and some social cases). For July-December 2015 period, recorded grievance

were 34 cases; 21 cases at NIL area & 13 casesat SIL area.Updated status of the recorded grievances are as follows:

- Compensation paid + temporary/permanent technical solution done: 5 cases.

- Compensation paid but temporary/permanent technical solution not yet done: 2 cases.

- New cases: 27 cases.

b) Types of complaints and status of resolution

1. It was noted that the grievances are mainly related with:

a. Impact of project construction activities such as soil erosion or siltation etc.

b. Other social/environment cases

2. There are grievances that are still not technically settled from the last period of reporting to the second half

of 2015 and has made it difficult for the land owners to cultivate the land. Therefore, in such cases HDEC

must pay the crop failure till the technical solution is carried out. HDEC conducted the payment for these

cases in February 2016.


33

3. HDEC implemented the technical permanent solutions required as has been recorded in the technical

corrective action plan.

4. Status of the permanent technical solution being:

a. NIL area - To construct widening drainage Siascimun river under NIL powerplant with length of ± 600 M

- On progress, waiting for sub-contractor engagement process.

b. SIL area – improvement of irrigation drainage Under SIL D Lobuk Latong

c. SIL area – To construct access way Communities SIL to the Farmland with length of ± 480 M – On

progress

c) Effectiveness of grievance mechanism

SOL has been working closely together with the Contractors in terms of receiving and closing out grievances from the

community in accordance with the ESMP (including the grievance mechanism). Records of the current Grievances Log,

the Grievance Form and the close out register have been developed in accordance with requirements of the

grievances mechanism. Grievances received are followed up and closed out in due course.

(v) Project procedures for acquisition of goods and services

As much as possible, SOL and its main contractors, HDEC and HAL, procure their required goods and services locally.

This has been socialized to all the main contractors as well as its sub-contractors.


34

(i) Air and Odour

Air quality and odour monitoring are conducted as below:

Weekly hydrogen sulphide (H2S) monitoring at well sites and nearby villages during drilling and production tests.

Quarterly dust monitoring at roads and nearby villages throughout construction phase.

H2S monitoring was carried out weekly at the well pads and in the villages throughout July to December 2015 (close

to the drilling activities). A total of twelve (12) villages (eight villages in SIL area and four villages in NIL area) and six

(6) well pads were monitored (two in SIL area and four in NIL area). However, it should note that the number of

monitoring locations throughout the period fluctuated depend on construction activities.

SOL had appointed an external consultant to implement the H2S quality monitoring and during this period of

monitoring, all readings showed compliance with the local standards.

In this period, dust monitoring was undertaken in September and December 2015 at six (6) villages (i.e. Sampil Pil,

Silangkitang, Sigurung-gurung, Onan Joro, Liang Singa, and Pakkat Situlo Huta) and six (6) points along access roads

(two access roads near SIL and NIL Power Plants, three (3) access roads to SIL-2n, WJR-1n and NIL-2n, and one (1)

access road near Simataniari Village). All of the test results are below Total Suspended Particles (TSP) limit prescribed

within local standards.

In addition, SOL and its contractor also control the vehichle speed limit on the SOL area, and conducting road watering

in order to further mitigate possible impacts from dust.

L. Issues, Status of Implementation of Mitigation Measures in the Environmental Management Plan and Compliance with Environmental Qualities and Standards (national and international, as relevant) and Environmental and Social Requirements


35

Figure L-1: H2S and Noise monitoring in NIL area

Source: ERM RKL-RPL, January 2015

Monitoring of H2S for Occupational Health and Safety has been recently improved with the purchase and deployment

of new portable H2S detectors (one unit Aeroqual Series 200/300/500 and one unit Detector Multigases ALTAIR® 4X).

Currently, these are used in the NIL area where the ambient H2S concentration is noted highest. This device also

installed at the drilling rig as the “fixed” H2S detection system.


36

Figure L-2: Gas meter readings at control room Figure L-3: H2S sampler at the drilling rig

(ii) Water (surface and ground water)

Water quality monitoring has consistently been carried out since 2015, at seven (7) surface water locations (three (3)

at NIL and four (4) at SIL) and four (4) groundwater locations (community wells located at NIL and SIL). Similarly to the

air quality monitoring described above, the scope of the monitoring regime was revised in July 2015 with additional

points for both surface and ground water. SOL had appointed an external consultant to implement the water quality

monitoring.

Sampling was undertaken at July and December 2015 and all readings showed compliance with the local standards.

(iii) Waste generation and management

a) Wastewater

The sources of wastewater on the Project are:

Domestic wastewater from workers’ camp

Wastewater from concrete batching plant

As of the end of the reporting period, four workers camps (HDEC, PT PP, and two Halliburton camps) have use by the

crew. All worker camps are using on-site septic system for the wastewater generated.

The concrete batching plant has a washing bay (concrete pit), as well as perimeter drains to channel the turbidity

water (from washing of concrete handling vehicles and/or equipment) into a settling pond, prior to discharge.

b) Solid and hazardous waste

All solid and hazardous wastes are disposed in accordance to Indonesian legislation. A hazardous waste storage facility

has been constructed, and the permit for temporary storage of B3 waste (in accordance with hazardous waste

categorisation in Indonesia) was obtained in February 2015. A new hazardous waste storage facility was also recently

completed on site.


37

Figure L-4: New Hazardous Waste Storage Facility

The “Government Regulation No .101/2015 related to Hazardous Waste Management”, dated 17 October 2015,

states that drilling cuttings and mud waste produced from offshore exploration using water- based mud are classified

as non-hazardous waste. Whilst there is no explicit reference to on-shore geothermal drilling activities, the drilling

waste of the Project is considered similar nature as it is derived from water-based drilling mud.

Therefore, SOL has prepared a proposal for the direct disposal of drilling cuttings to disposal pits inside SOL project

area, the proposal was approved by EBTKE on August 2015, and SOL can use the pit in SIL-3 & NIL-3 as drilling cutting

disposal pit.

Spill response plan and land contamination mitigations (eg secondary containment) are addressed within the relevant

management plans. SOL will seek to implement these measures, including bunding where necessary, as the Project

develops.

(iv) Biodiversity and habitat

A project specific Biodiversity Action Plan (BAP) has been prepared to detail actions that would lead to the

conservation or enhancement of biodiversity for the Project. SOL is currently implementing or planning to implement

the actions prescribed by the BAP.

Three (3) biodiversity surveys have been carried out so far, which were completed in November 2013, July 2015 and

October 2015. The most recent surveys in July and October 2015 were focused on the evaluation of the presence of

endangered, threatened and protected species for Critical Habitat Assessment.

In accordance with the practices of the BAP, the well pad and access roads of WJP-1n had been cleared.

In accordance with recommendations of the BAP, an ecologist is being employed (on an “as needed” basis) by SOL to

assist in the supervision of site activities.

SOL is also active in carrying out socialisation of the BAP to their workers. 11 BAP socialisation sessions were

conducted for the period of January to June 2015. As of the end of June 2015, 88% of workers have been socialised.

SOL is also active in carrying out socialisation of the BAP to their workers. As of December 2015, 100% of workers

have been socialised on BAP.


38

(v) Noise and vibration

SOL conducts weekly noise monitoring at well sites and nearby villages during production tests; and quarterly noise

monitoring at well sites and nearby villages throughout construction phase.

Similarly to air quality, the first round of monitoring was carried out in March 2015. SOL appointed a consultant in

August 2015 to implement the wider scope.

Noise monitoring is carried out quarterly, and weekly at the well pads and in the villages (close to the drilling

activities).

The results show monitoring carried out weekly throughout July to December 2015. A total of nine (9) villages and six

(6) well pads were monitored. However, it should be noted that the number of monitoring locations throughout the

period fluctuated depend on construction activities.

All of the results (i.e. aggregated for a 24 hours average, according to Indonesian regulations) at the receptors (set

at the villages) show compliance with the local standards (55 dB). The compliance is checked through the individual

readings at 10 minute intervals within day/night time measurement periods for the previous monitoring period.

During this period, the noise result generally show compliance to the standards set by government regulation (KepMenLH No. 48 of 1996) of 55 dB, and to International standard for the day time (55 dB).

The highest noise was recorded in Sigurung Gurung on the first and the second week of December 2015, which amounted to 62.6 dB. This happened because of the well testing activities in SIL. However, SOL has prepared a counter measure to reduce noise, including but not limited to:

- Use Low Emission Compact Muffler (LECM) during well production tests to reduce noise during well testing. - Install noise barrier in the well testing equipment on the next well testing - Conduct regular noise monitoring at the nearest village

Evaluation of noise monitoring in NIL area indicated that nothing exceeds the quality standards set by the government.

(vi) Occupational health and safety

a) Training programs carried out

SOL and its contractors regularly conducts training which cover topics such as:

Basic safety training

First aid

Use of fire extinguisher and fire fighting

Permit to work

Emergency drill evacuation

Use of Self Contained Breathing Apparatus (SCBA)

Socialization of the biodiversity action plan

Food handling

H2S induction

Spill response

Hazardous waste management

Devensive Driver Training (DDT)

Working at Height Training

Fire Training


39

b) Emergency situations and response

SOL and its Contractors have a training plan which includes First Aid, Emergency Response and Fire Fighting. The

appropriate staffs are expected to be trained in the respective courses. Currently, SOL (and its Contractors) also has

a roster of three (3) doctors and three (3) paramedics/nurses for the Project.

A Project level Emergency Response Plan (ERP) has been drafted and site specific procedures have to be developed.

It will include a site plan, which showing the mustering area and the evacuation route for each well pad.

(vii) Community health, safety and security

A Community Health & Safety Plan was drafted for the Project. Regarding H2S release, SOL conducts weekly H2S

ambient monitoring at both of the areas surrounding the well pads as well as community receptors. Detailed

procedures addressing community safety in event of an H2S release incident are still under review and will be

implemented in coordination between SOL and the contractors.

The security force of the Project is being increased in view of the increasing of on-site activities. It also measure to

respond to the need to ensure that illegal hunting/logging activities are prevented.

(viii) CO2 emissions by the Projects

As a good practice, the Project is keeping track of the following during the construction phase:

Fuel consumption

Electricity usage

Vegetation cleared

Project figures (ie fuel consumption) relating to CO2 emissions are as shown in Table L.1 below.

Table L.1: Fuel consumption and electricity usage (July – December 2015)

Period

Fuel Consumed (m3) Electricity (kWH)

HDEC HAL HDEC HAL

July-15 142.43 635.64 468.12 -

August-15 102.70 651.58 548.92 -

Sept-15 2,5204.21 713.99 2,848.71 -

Oct-15 81.26 641.25 2,878.81 -

Nov-15 198.32 473.79 7,220.73 -

Dec-2015 192.41 565.30 110.00 -

Total to Date 2,5921.33 3,681.56 14,075.29 -

The vegetation cleared areas in this reporting period are at NIL power plant, Access Road 5 and the WJP-1 well pad.

(ix) Earthquake occurrences/incidences (seismicity)

No major earthquakes were recorded for the reporting period.


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(x) Environmental Management Plan

SOL is implementing ESMP. The Contractors plan alignment was completed, whereby Contractors in-principle agreed

to adopt SOL’s ESMP and materially aligned the relevant documents to SOL’s standards.

(xi) Environmental Monitoring Results and assessments

During Semester 1 of 2015, SOL was continuously conducting the prescribed environmental monitoring such as air

quality (dust or Total Suspended Particles), noise levels, ambient H2S, surface water quality and groundwater quality.

In general, results meet the standards stipulated by the Indonesian Government. However, there have been slight

exceedance in H2S concentrations at several well pads. This is likely due to natural emissions from the fumaroles.

(xii) Findings and recommendations of ISO 14001 and ISO 18001 audit

No ISO audit has been planned or conducted during this reporting period.

(xiii) Problems encountered and action plan for the next reporting period

Currently, there are several on-going issues, which SOL is actively addressing. These include:

Continuous improvement of strategies to better manage soil erosion control as well as slope stability. Soil analysis

was being undertaken in the most critical sites (for development of appropriate control measure). Revegetation

work at slopes also was in progress.

Full implementation of the Corrective Action Tracking System (CATS) which has been socialised to the contractors.

On-going discussion with the various stakeholders to finalise the biodiversity offsetting, whereby SOL is actively

exploring options.

On-going work to finalise the details of the H2S community warning system.

Anticipation that noise could potentially be an issue as production testing is scheduled to commence at more

populated area (SIL). SOL will monitor the situation and handle grievances that might arise.

(xiv) Other information and feedback

None to be reported.


41

Appendixes

Appendix A. Workers’ Accommodation _____________________________________________________________________ 42 Appendix B. ADB Corrective Action Request (3 June 2015) ______________________________________________________ 54 Appendix C. Implemented IPP related activities that provide infrastructural, agricultural and health benefits to local

communities. ________________________________________________________________________________ 57 Appendix D. Potential Non-compliances and Recommended Actions ______________________________________________ 60 Appendix E. Supplementary ESIA for SIL-3n and NIL-3n Developments ____________________________________________ 62 Appendix F. Land Acquisition Plan for SIL-3n Pipeline __________________________________________________________ 63


42

Table App.A-1; A-2 and A-3 shows the details of HDEC, HDEC Subcontractor camp and HAL’s camps.

Table App. A-1: HDEC Camp

No. Item Description of workers’ camps

1 Location Located at SIL-D

2 Size 14,500m2

3 Land Acquisition Leased

4 Capacity 40 locals, and 66 Koreans

5 Construction January 2015 and constructed by PT. Powertech as Hyundai Subcontractor

6 Travelling to Work The camp is only 10 minutes from worksite. Workers start to leave camp at 06.45 am and are transported by bus.

7 Facilities Management The camp is managed by a contractor.

8 Practice for charging for accommodation

No, the worker doesn’t need to pay for accommodation and facilities, such as: food, transport, and electricity.

9 Criteria for using the accommodation

No criteria to get accommodation. Provided to all staff

10 Code of Conduct Yes, there are rules installed in the camp. This rule installed on the wall.

11 Personal Documents Yes

12 Grievances No, not yet

13 Minimum amount of space Indonesian staff : Living space allocated 2~3 employee to 3m x 4m

Korean staff : Living space allocated 1 employee to 3m x 3m

14 Provision Indonesian staff : bed, pillow, blanket, locker, fan

Korean staff : bed, pillow, blanket, locker, Air conditioner, refrigerator

15 Sanitary Indonesian staff : Man : 6 shower facility/8 toilet

Woman : 3 shower facility / 3 toilet

Korean staff : 1 bath room(with toilet) were provided to each of employee

16 Laundry provided

17 Ventilation The main mode of ventilation is window

18 Food Yes, but no provisions for diet restriction due to religion. There are 4 m spaces between cooking and eating

19 Water Cooking using aqua gallon. Washing and showering using ground water

20 Leisure Television, Gym (table tennis, fitness), internet

21 Security Fence was installed around comp. 9 person Security guards were designated

22 Gender Segregation Females and males separated into different rooms and toilets

23 Emergency Response Plan - List of emergency contact already informed in ID Card - There is muster point near security post if any emergency event - There are 25 fire extinguisher in base camp

24 Fire Prevention & Fighting Yes, There are fire extinguisher provided and already conducted fire drills

25 Medical SOS staff stay the camp and Multi first aid kit was equipped in ambulance

26 Sewage Bio septic system have used for Sewage treatment

27 Solid Waste Solid waste disposed into general waste storage and there are three kind of waste segregation, such as: inorganic waste, organic waste, construction waste, and metal.

28 Water Usage The water take from ground water and distributed after collected into 5 water tank

Appendix A. Workers’ Accommodation


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Table App.A-2: PT PP Camp

No. Item Description

1 Location The Workers’ Camp is located in Lumban Garaga, Pahae Julu, North Tapanuli,

North Sumatera, Indonesia

2 Size 8,362 m2

3 Land Acquisition The land was leased for 3 years

4 Capacity 25 person

5 Construction The Camp was constructed in December 2013, by the contractor itself.

6 Travelling to Work The Camp is located 12 km from NIL area/15 minutes and 15 km from SIL/30

minutes.

Workers get to work by car or van provided by the Contractor.

7 Facilities Management HDEC General Affair manages the camp and it is directly managed by contractor

8 Practice for charging for

accommodation

Services are all provided by the contractor free of charge.

9 Criteria for using the

accommodation

Worker is accommodated into the camp if his residence is outside of Pahae Julu

and Pahae Jae

10 Code of Conduct No clear rules or guidelines are provided to the workers. Code of Conduct is not

displayed.

11 Personal Documents The workers are allowed access to their travel/personal documents at all times.

12 Grievances A grievance mechanism is in place. No grievances reported so far.

12 Minimum amount of space Information about amount of living space is not available at the moment.

However, storage space is included in the living space of the workers

13 Provision The standard provision for each worker is 1 bedding, 1 pillow, and 1 locker

14 Sanitary 10 units of showers/toilets are provided.

15 Laundry Yes

16 Ventilation Natural

17 Food Food provided by contractor with provisions due to religion.

Workers are not allowed to cook.

There are spaces designated specifically for cooking and eating

18 Water Drinking and cooking uses water gallon, washing, and showering uses ground

water

19 Leisure No leisure/recreation facilities are available at the compound.

20 Security There are physical security features, eg fencing, gates, and lighting. There is six

security staff.

21 Gender Segregation Females stay in their own rooms.

22 Emergency Response Plan An Emergency Response Plan is available and it has been provided to SOL

23 Fire Prevention & Fighting There are 23 fire extinguishers. Until now there is no fire drill but an emergency

drill.

24 Medical There is a clinic with one doctor, one nurse, and one ambulance.

The ambulance is parked in the camp.

25 Sewage Septic tank biotech for toilets. This system uses microbes to control sewage.

26 Solid Waste Solid waste is disposed without segregation or recycling system.

27 Water Usage Water sourced from ground water and conducted with pipe to domestic usage.

The ground water is in the camp area


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Table App.A-3: PT Koin


1 Location 1.Located at Silangkitan PahaeJulu, North Tapanuli, North Sumatera, Indonesia

2.Located at Silangkitan Pahae Julu,North Tapanuli,North Sumatera,Indonesia

3.Located at Sarulla Pahae Julu,North Tapanuli,North Sumatera,Indonesia

2 Size 1.2 Floor 96 m2

2.2 Floor 100 m²

3.1 Floor 150 m²

3 Land Acquisition 1.Leased

2.Leased

3.Leased

4 Capacity 1.23 locals

2.30 locals

3.38 locals

5 Construction 1.The house was constructed by owner on 2015

2.The house was constructed by owner on 2015

3.The house was constructed by owner on 2016

6 Travelling to Work 1.The camp is only 10 minutes from worksite. Workers start to leave camp at 06.00 am and are transported to work by bus.

2. The camp is only 10 minutes from worksite. Workers start to leave camp at 06.00 am and are transported to work by bus.

3. The camp is only 15 minutes from worksite. Workers start to leave camp at 06.30 am and are transported to work by bus.

7 Facilities Management All The camp is managed by owner


All worker doesn’t need to pay for accommodation and facilities, such as: food, transport, and electricity..


No criteria to get accommodation. Provided to all staff

10 Code of Conduct Yes, there are rules installed in the camp and informed to the worker. This rule installed on the wall.


12 Grievances No, not yet

13 Minimum amount of space

1.5 Living space 4 x 5 rooms,to 5 person



14 Provision Standard provision to worker are bed, pillow, and locker

15 Sanitary 1.2 showers and 2 toilets

2.2 showers and 2 toilet

3.3 showers and 3 toilet

16 Laundry Not provided

17 Ventilation The main mode of ventilation is window

18 Food Yes, food was provided by company

19 Water Cooking using aqua gallon. Washing and showering using ground water

20 Leisure -

21 Security No Security

22 Gender Segregation All male

23 Emergency Response Plan List of emergency contact already informed in ID Card - yes evacuation routes installed on the wall

24 Fire Prevention & Fighting No fire extinguisher provided

25 Medical Using the nearest village clinic

26 Sewage using bio septic system


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28 Water Usage 1.The water take from ground water and distributed after collected into 1 water tank capacity 3.000 Liter

2. The water take from ground water and distributed after collected into 1 water tank capacity 3.000 Liter

3. The water take from ground water

Table App.A-4: Yeonhab

No. Item Response

1 Location a. Pangaloan (Pasaribu)

b. Pangaloan (Sianturi)

c. Pangaloan (Sibarani)

d. Silangkitang (Panggabean)

e. Silangkitang (Sitompul)

2 Size a. 8x25= 200 m2

b. 8x21 = 168 m2

c. 6x25 = 150 m2

d. 12x18 = 216 m2

e. 10x12 = 120 m2

3 Land Acquisition Rent house

4 Capacity 69 person, 60 for Indonesian person , and 9 for Korean person

5 Construction a. 2014

b. 2009

c. 2014

d. 2014

e. 2014

By owner

6 Travelling to Work Only less 10 minutes from worksite, workers start to leave camp at 06.30 and transported by minibus. There are 2 camps nearby worksite, the workers walking through to worksite about 5 minutes.

7 Facilities Management The camp managed by owner.


Charge to company, the worker doesn’t need to pay for accommodation and facilities, such as: food, transport, electricity, laundry.


Only non-local worker.

10 Code of Conduct The rule describe by owner related with local culture.


12 Grievances No

13 Minimum amount of space Living space allocated 2 workers into 3x4 rooms.

14 Provision Standard provision to worker is bed, pillow, blanket, and locker.

15 Sanitary 2 bathroom each mess. One bathroom for one Korean

16 Laundry Provided

17 Ventilation Window

18 Food Provided by company

19 Water Drinking water from aqua provider. Bath using natural resource.

20 Leisure Television

21 Security None

22 Gender Segregation Not applicable since no female on the camp

23 Emergency Response Plan No plan since rented local house

24 Fire Prevention & Fighting No


46

No. Item Response

25 Medical No, use public medical facility

26 Sewage Use usual septic tank

27 Solid Waste Manage by owner

28 Water Usage Natural resource

Table App.A-5: Hankook

No. Item Response

1 Location The workers’ camp is located in Silangkitang village, Pahae Jae, North Tapanuli, North Sumatera, Indonesia.

2 Size 120 m2



5 Construction The camp was constructed in December 2014 by the local contractor.

6 Travelling to Work The camp only 5 minutes from site. Workers start to leave camp at 06.45 am and go to site.

7 Facilities Management The camp manager by owner.


All services provided by contractor.


Only for non-local workers

10 Code of Conduct No clear rules or guidelines are provided to the workers. Code of conduct is not displayed.

11 Personal Documents The worker s are allowed access to their travel/personal documents in all times

12 Grievances A grievance mechanism is on the place. No grievance reported so far.

13 Minimum amount of space Information about amount of living space is not available at the moment. However, storage space is included in the living space of the workers.

14 Provision The standard provision for each worker is 1 bedding, 1 pillow, , and 1 locker.

15 Sanitary Six toilet provided by owner of rent house.

16 Laundry provided and washing clothes by yourself

17 Ventilation Natural.

18 Food Provided by Hankook and supplied by local contractor.

19 Water Drinking and cooking using aqua. Washing, and showering using ground water.

20 Leisure Watching television

21 Security No security

22 Gender Segregation No segregation because no female on the camp.

23 Emergency Response Plan An Emergency Response Plan is available.

24 Fire Prevention & Fighting No fire prevention & fighting.

25 Medical Using the nearest village clinic.

26 Sewage Sewage using bio septic system.

27 Solid Waste Solid waste is disposed without segregation for recycling system.

28 Water Usage Water resource from ground water.

Table App.A-6: Karang Mas Unggul (KMU)

No. Item Response

1 Location The location workers camp in sarulla, pahae jae, tapanuli north

( Rented two house for rent )

2 Size House rent 1 : 105 m² , House rent 2 : 112 m²

3 Land Acquisition Land private property rights have a home.


47

No. Item Response

4 Capacity House rent 1 : 7 persons , House rent 2 : 9 persons

5 Construction The contruction houses was contructed by house onwer

6 Travelling to Work The house is located 20 km from SIL area project.

Workers escorted roundtrip by car,traveling a bout 15 minutes.

7 Facilities Management Facilitas Managemen by subcontractor


subcontractor only provide a place tiggal / lodging and to buy their own eating at the diner.


No criteria to get accommodation. Provided to all staff.

10 Code of Conduct No clear rules or guideline are provided to the workers. Code of Conduct is not displayed.

11 Personal Documents Every workers requested personal documents and collected in the company.

12 Grievances No, Not yet

13 Minimum amount of space Minimum amount of space 1 house 8 / 9 persons

14 Provision The standard provision for each worker is 1 bedding, 1 pillow

15 Sanitary 1 home there are 2 units shower and toilet

16 Laundry Wash your own clothes


18 Food To eat, We buy their own food at diner.

19 Water Drinking and cooking uses water gallon, washing and showering uses ground water/ water PAM

20 Leisure No leisure/ recreation with co – workers went to the tourist attractions.

21 Security Responsible for security are those who have home rental.

22 Gender Segregation No segregation because no female on the camp.

23 Emergency Response Plan An Emergency Respons Plan is available andit has been provided to hyundai

24 Fire Prevention & Fighting Fire prevention & fighting using fire extinguisher

25 Medical Puskesmas sarulla, pahae jae.

26 Sewage Septic tank biotech for toilets, This system used microbes to control sewage.

27 Solid Waste Solid Waste stored in a safe place and do not disrupt the environmental pollution/ made septic tank.


Table App.A-7: Multi Adverindo NIL

No. Item Response

1 Location NIL 3

2 Size 1.500 m2



5 Construction The Camp was constructed in April 2014, by the contractor Local

6 Travelling to Work The Camp 300 m from NIL area/10 minutes

7 Facilities Management MA General Affair manages the camp and it is directly managed by contractor


Services are all provided by the contractor free of charge.


Worker is accommodated into the camp if his residence is outside of Pahae Julu or non-local

10 Code of Conduct No clear rules or guidelines are provided to the workers. Code of Conduct is not displayed

11 Personal Documents The workers are allowed access to their travel/personal documents at all times.


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No. Item Response

12 Grievances A grievance mechanism is in place. No grievances reported so far

13 Minimum amount of space storage space is included in the living space of the workers

14 Provision The standard provision for each worker is 1 bedding and 1 pillow

15 Sanitary 4 units of showers/toilets are provided.

16 Laundry Yes


18 Food Food provided by contractor with provisions due to religion.

Workers are not allowed to cook.

There are spaces designated specifically for cooking and eating

19 Water Drinking and cooking uses water gallon, washing, and showering uses ground water

20 Leisure No leisure/recreation facilities are available at the compound..

21 Security There are physical security features, eg fencing, gates, and lighting. There is six security staff.

22 Gender Segregation Females stay in their own rooms.

23 Emergency Response Plan An Emergency Response Plan is available and it has been provided to SOL

24 Fire Prevention & Fighting There are 6 fire extinguishers.


26 Sewage Septic tank biotech for toilets -

27 Solid Waste Solid waste is disposed without segregation for recycling system


Table App.A-8: ASIA BETON

No. Item Response

1 Location SIL-D

2 Size 8X10 m



5 Construction March 2014

6 Travelling to Work The camp only 5 minutes from site

7 Facilities Management The camp managed by contractor


The worker doesn’t need to pay for accommodation and facilities, such as: food, electricity, etc.


No criteria to get it

10 Code of Conduct There are rules install in the camp

11 Personal Documents Provided by company

12 Grievances Not yet


Living space 3x2 m

14 Provision Provision to worker, including bed, pillow, and locker.

15 Sanitary 6 shower and 6 toilets

16 Laundry No provided

17 Ventilation The main mode of ventilation only window without fan or air conditioning

18 Food Food comes from catering

19 Water Drinking using aqua. Washing and showering using natural resource

20 Leisure Television only for temporary


49

No. Item Response


22 Gender Segregation No segregation because no female on the camp

23 Emergency Response Plan There are two fire extinguisher in the base camp

24 Fire Prevention & Fighting Only provided fire extinguisher

25 Medical Using the nearest village clinic..

26 Sewage Sewage using bio septic system

27 Solid Waste Throw into the trash


Table App.A-9: DAEAH

No. Item Response

1 Location a. Pardamean

b. Sarulla

2 Size a. 600 m2

b. 600 m2


4 Capacity a. 4 Korean and 1 local

b. 12 local

5 Construction a. The camp constructed in November 2015

b. The camp constructed in September 2015

6 Travelling to Work a. The camp located 1 km from NIL area and 15 km from SIL

b. The camp only taken 20 minutes from site. The workers started to leave camp at 06.00 am and transported by bus

7 Facilities Management Managed by contractor


Services are all provided by the contractor free of charge


Only for non-local worker

10 Code of Conduct No clear rules or guidelines are provided to the workers. Code of conduct is not displayed.

11 Personal Documents The worker allowed access their travel/personal document at all times.

12 Grievances A grievance mechanism is in a place. No grievance reported so far.


Information about the amount of living space is not available at the moment. However, storage space is included in the living space of the workers.

14 Provision Standard provision to worker, including bed, pillow, and locker

15 Sanitary 2 shower for men and 2 toilets for men

16 Laundry Not provided for local, only for Korean

17 Ventilation Only window for local, and AC for Korean

18 Food Food provided by contractor with provisions due to religion

19 Water Drinking water and cooking using aqua. Washing and showering using ground water but minimal available

20 Leisure Television only for temporary

21 Security No


23 Emergency Response Plan

List of emergency contract already informed in ID Card

24 Fire Prevention & Fighting

No fire prevention



50

No. Item Response

26 Sewage Septic tank biotech for toilets. This system uses microbes to control sewage

26 Solid Waste Solid waste is disposed without segregation or recycling system

27 Water Usage The water taken from ground water and distributed after collected into the tank.

Table App.A-10: CHANGWOON

No. Item Response

1 Location a. Pangaloan (Sitompul)

b. Pangaloan (Tobing)

c. Pangaloan (Gultom)

d. Sarulla (Tobing)

e. Tarutung (Hutabarat)

2 Size a. 8x10 m

b. 8x10 m

c. 8x15 m

d. 6x10 (2H) = 120

e. 6x10 (2H) = 120


4 Capacity 40 locals and 3 Koreans

5 Construction a. 2014

b. 2016

c. 2014

d. 2015

e. 2014

6 Travelling to Work Only lee 10 minutes from worksite, worker, start to leave camp at 06.30 and transported by minibus. There are 2 camps nearby worksite, the workers walking through to worksite about 5 minutes.

7 Facilities Management The camp managed by owner


Charged to company. The worker doesn’t need to pay for accommodation and facilities, such as: food, transport, electricity, and laundry.


Only for non-local worker

10 Code of Conduct The rule describe by owner related to local culture.


12 Grievances A grievance mechanism is in a place. No grievance reported so far.


Living space allocated for 2 workers into 3x4 rooms.

14 Provision Standard provision to worker, including bed, pillow, and locker

15 Sanitary 2 bath room each mess, 1 for Korean, and another room provided for local workers.

16 Laundry Provided for local, and Korean

17 Ventilation Only window

18 Food Food provided by company

19 Water Drinking water and cooking using aqua. Washing and showering using natural resources.


21 Security No





No fire prevention


26 Sewage Using traditional septic tank


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No. Item Response

26 Solid Waste Managed by owner

27 Water Usage Using the natural resources

Table App.A-11: POWERTECH

No. Item Response

1 Location Located at Sarulla

2 Size 12.400 m2


4 Capacity 12 non-local

5 Construction July 2012

6 Travelling to Work The camp only 35 minutes from work site

7 Facilities Management No facilities


The works does need to pay for accommodation


Provided for all worker

10 Code of Conduct Nothing


12 Grievances No. Not Yet.


Living space allocated 3 worker to 3x4 rooms

14 Provision Standard provision.

15 Sanitary 2 shower & toilet

16 Laundry Not provided


18 Food Yes, provided by company

19 Water Cooking using aqua gallon, washing & showering


21 Security No





No fire prevention


26 Sewage Using traditional septic tank


27 Water Usage Using ground water

Table App.A-12: MULTIADVERINDO SIL

No. Item Response

1 Location Pangaloan,Pahae Jae/Mess Hijau Pakpahan

2 Size 3 rooms x 4 person/1 room 25 person




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No. Item Response

5 Construction By owner

6 Travelling to Work By bus around 15 minutes to site

7 Facilities Management Pillow, bed, etc


No pay


Authorized person only

10 Code of Conduct -

11 Personal Documents Handled by person

12 Grievances Not yet


Around 80 cm

14 Provision Standard provision.

15 Sanitary 1 toilet

16 Laundry Provided by company


18 Food Yes, provided by company

19 Water Cooking using aqua gallon, washing & showering



22 Gender Segregation No segregation, no female in the camp




No fire prevention


26 Sewage Using traditional septicy tank

26 Solid Waste Solid waste is disposed without segregation or recycling system

27 Water Usage Using ground water

Table App.A-13: HAL Camps

No. Item Response

1 Location There are 2 basecamps operated until now, at NIL-3 and at SIL-D.

2 Size Not provided

3 Land Acquisition Those basecamps are within SOL's area.

4 Capacity Each camp's capacity is about 150 people.

5 Construction NIL-3 - September 2015 began to be occupied.

SIL-D - November 2015 began to be occupied.

6 Travelling to Work NL-3 - 45 minutes to work site by bus and light vehicle crew change.

SIL-D - 10 minutes to work site by light vehicle crew change.

7 Facilities Management NIL-3 is managed by a third party named PT. Prospero Prima

SIL-D - is managed by a third party named Adinda Intra Sarana (AIS)


Both camps are free of charge.


Basecamps are basically for Halliburton's subcontractors, no particular criteria to occupy the accommodation.

10 Code of Conduct No code of conduct displayed during the site visit.

11 Personal Documents The workers are allowed access to their documents at all time.


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No. Item Response

12 Grievances There are worker grievances mechanisms in place, but none reported yet.

12 Minimum amount of space Each camp consists of 20 ft and 40 ft caravans.

13 Provision Bedding, pillow, mini shelf/cupboard. VIP room equipped with Television cable

14 Sanitary In average, 1 toilet for 4 to 8 persons.

15 Laundry Laundry service is provided.

16 Ventilation Air conditioning.

17 Food Food is provided for workers. Due to religion, the food provider only cooks what Muslims can eat.

18 Water For domestic uses water is provided by 3rd party, for cooking uses refilled water and for drinking uses bottled water.

19 Leisure There is recreation hall for each camp. At SIL-D there is table tennis

20 Security Security fencing and gate are available at each camp.

NIL-3 - 3 security personnel for each shift (day and night).

SIL-D - 2 security personnel for each shift (day and night).

21 Gender Segregation Separate room for men and women.

22 Emergency Response Plan NIL-3 - there are emergency contact list and clear indication of mustering point also display of evacuation routes.

SIL-D - no emergency contact displayed, but clear indication of mustering point also display of evacuation routes are available

23 Fire Prevention & Fighting Each aisle is equipped with a fire extinguisher.

24 Medical NIL-3 -, SOS stands by at site.

SIL-D - Not yet available.

25 Sewage NIL-3 - septic tank is utilised for sewage, Dinas Kebersihan will take out the sludge regularly.

SIL-D- there are 2 septic tanks. It is planned to cooperate with Dinas Kebersihan to take out the sludge.

26 Solid Waste Solid waste is transported by licenced 3rd party.

27 Water Usage See item number 18.


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Table L.2: ADB Corrective Action (3 June 2015)

Ref March 2015 Corrective Actions Response

2015-3/1 ADB requests that a detailed map showing drainage pathways, discharge points and receptors be developed and submitted to ADB by 31 May 2015.

SOL has provided the requested documents to ADB.

2015-3/2 ADB requests that a description of the stabilization works and a time frame for completion be provided by 31 May 2015.

SOL has provided the schedule to ADB.

2015-3/3 ADB requests visual documentation of erosion and sediment controls at road 5 and WJP-1 be provided by 31 May 2015.

SOL has provided the requested visual documentation to ADB.

2015-3/3 ADB requests a detailed schedule for completion of all sediment and erosion control structures by 31 May 2015.

SOL has provided the requested schedule to ADB.

2015-3/4 ADB requests that a program of monitoring impacted waterways is in place by 31 May 2015.

Currently, SOL conducts surface water monitoring in quarterly basis. The monitoring emphasizes in physical-chemical monitoring.

2015-9/6 ADB requests that SOL provide a timeline for completion of all restoration works by 31 May 2015.

In addition, SOL will conduct biweekly watercourse inspection which will focus on physical parameter (turbidity and pH) starting in June 2015.

2015-3/5 Ensure that:

1. Physical restoration of offsite impacts is to be considered a project priority, are to be completed as soon as practicable and provide long term solutions.

2. Community-based solutions are to be reviewed by qualified project personal.

3. Advice of intended or completed restoration works is to be communicated to relevant community stakeholders. Provide a status report/updated report to ADB on outstanding Grievance Log.

Biweekly monitoring is to monitor our effort in conducting erosion control and sediment basin effectivity.

2015-3/5 SOL is to provide to ADB a restoration and site stability plan and advice on the destination of down gradient water flows by 31 May 2015.

SOL and contractors are still in progress to develop the timeline for this action.

2015-3/6 SOL to also include information on duration of activities that may have an adverse impact on the communities and illustrate intensity of potential impacts such as noise to properly prepare local people for such works.

Note: We find there are two items with the same reference number (2015-3/5) and understand that the 1st 2015-3/5 refers to general situation while the 2nd one refers to SIL-2.

2015-3/7 SOL to find out during monthly meetings if there are other villages who initiated agreement with contractors and integrate them in grievance log for monitoring and follow up.

Noted. We have been diligently working to physically restore offsite impacts and reinforce the preventive measures.

2015-3/8 a) Integrate and address grievances in Annex 1 into the Grievance Log. SOL should not simply dismiss grievance raised to the mission without proper inquiry. Results of such inquiry to be recorded in the log.

b) Compensation for damages should be promptly paid. SOL should not close a grievance after payment of compensation. SOL should monitor these corrective measures and ensure that those proposed

This is in line with the current practice.

Appendix B. ADB Corrective Action Request (3 June 2015)


55


by the villagers and implemented by the contractors actually solves the problem.

c) Grievance log to include additional columns on locations; monitoring and follow up information on whether solution is effective to permanently solve the problem; timing and dates of discussion with local people to agree on a solution and reasons why proposed solution is still not acceptable to complainant.

2015-3/9 a) SOL to ensure that Environmental Team and Engineering Team also look at the proposed measures and agree whether it is viable permanent solution. If not, agreements with contractors should reflect that it is an interim solution and that the contractor is still bound to ensure that permanent solutions are implemented.

b) If there are no viable solutions, SOL should purchase affected lands, tap new water sources or implement whatever action is required to replace what is lost.

c) SOL to ensure that ISP budget is not used for corrective measures. All corrective measures should be limited by scope not limited by budget.

This is in line with the current practice.

2015-3/10 ER Team to continue to ensure women in communities are informed about project activities and the IPP; their concerns and grievances properly logged and addressed.

(These are continuing activities which we will be monitoring so we keep this as a reminder.)

2015-3/11 Continue monitoring of performance of social team at site and add staff or contract consultants, as required, for IPP implementation.

(These are continuing activities which we will be monitoring so we keep this as a reminder.)

Reinforcement of the slope has been done. The remaining backfilling have been completed by the end of May 2015 and followed by the remaining work to be completed by June 2015.

2015-3/12 SOL to develop an information sheet on skills training held by local contractors and on local recruitment.

Besides the community monthly meeting, socialization is also conducted prior to important activities.

2015-3/13 SOL to ensure that external social monitoring expert conduct regular visits, validate SOL’s social performance in consultation with affected people.

Noted.

2015-3/14 SOL to address concern raised by the local government during the meeting.

Coordination with Local Government In the meeting at the regency level, we noted that the regency is very keen on cooperating with SOL. They conveyed the following messages:

a) SOL to coordinate CSR programs with the Government

b) The Government plans to create a CSR Coordinating Team comprising of relevant government officials and SOL.

c) The Government is also requesting for the list of CSR Programs which SOL plans to implement.


56


d) Expand focus area to the rest of North Tapanuli Regency - The local government expressed that SOL should cover not only the 11 villages directly affected but the rest of the North Tapanuli Regency in order to avoid jealousy and ensure equitable distribution of development.

e) The Mission explained that in comparison with other companies, SOL is planning to implement ISP programs even prior to production/operations. Therefore SOL’s CSR programs will need to focus on the 11 directly affected villages for the first few years. After the plant is operational, SOL and the Government can discuss how the CSR can be extended to other villages outside SOL’s impact area.

f) CSR funds will be coursed through the Government

g) The Mission clarified that there will be coordination but funds will not be coursed through the Government SOL is under obligation to fulfill ADB’s requirements which includes these programs under the CSR. Also as stated in the law, implementation of CSR programs is the Company’s responsibility. Furthermore, Presidential Decree No. 47, 2012 on Corporate Social and Environmental Responsibility for Companies [Peraturan Pemerintah Republic Indonesia No. 47, 2012], the CSR funds are for the community and the “realization of the budget will be implemented by the Company and will be factored in the Company’s budget costs.” Law No. 40 of 2007, para 74, mentions that Companies that are involved in extractive industries are obliged to implement this CSR programs. This CSR is an obligation and the budget of which will be counted as the Company’s operations costs.

h) Impacts of the project should be monitored

i) SOL should ensure compliance of contractors and subcontractors

57


Photo App F.1: Agricultural training in Silangkitang & Sigurung-gurung village (November 2015)

Source: SOL’s Source: SOL

Photo App F.2: Assistance for farmers’ group – 1 unit of organic fertilizer and animal feed machine (Nov 2015) – Silangkitang

& Sigurung-gurung village

Source: SOL Source: SOL

Appendix C. Implemented IPP related activities that provide infrastructural, agricultural and health benefits to local communities.

58


Photo App F.3: Clean water piping program at Simataniari (October 2015)

Source: SOL

Photo App F.4: Ongoing Clean water piping program at Lumban Jaean and Sibaganding village


Photo App F.5: “English is fun program” – Free English Course for Primary and Elementary students (SIL & NIL)


59


Photo App F.6: Assistance for students with best achievement (NIL & SIL) – August 2015

Source: SOL

Photo App F.7: Posyandu Lansia at Pardomuan Nainggolan & SiOpat Bahal village


Photo App F.8: Assistance for PKK Simataniari (Dec 2015)

Source: SOL


60

Table App.D-1: Potential Non-compliances and recommended actions

Description of potential non-compliance Effects Responsibility Recommended action

Erosion Control

Significant improvements had progressed after efforts were made to implement erosion control and other mitigation methods by SOL and its contractors.

However insufficient erosion and sediment control management at some parts of the NIL and SIL construction areas were still present.

Erosion

Unstable spoil pile slopes

Land clearing and earthworks extending beyond the marked Project Area

Changes to water course morphology

SOL (and its contractors)

SOL and its contractors to continue the implementation of applicable mitigation measures and monitoring for the Construction Phase ESMP.

Organisational reporting & enforcement

The risk assessment procedure can be more comprehensive in order to capture all process and procedural changes in a project risk register.

Potential risks should be reflected in the ESMS/ESMP documents.

SOL Risk assessments conducted regularly should be documented.

Grievances

Significant improvements were made to address community grievances.

However, there were still some outstanding cases that had yet to be addressed.

The latest community grievance log indicated that main concerns were pertaining to erosion and sedimentation impacting their water source and agricultural land.

Impact on livelihood and income of affected villagers.

Impacts to the quality of daily life and well-being of the affected communities.


SOL to ensure adherence to its Grievance Tracking and Redress Mechanism (GTRM) procedure. All scheduled actions should be conformed to for effective grievances to be addressed.

SOL is to complete all outstanding grievances as soon as possible.

Community, Health, Safety and Security

Appendix D. Potential Non-compliances and Recommended Actions


61

Description of potential non-compliance Effects Responsibility Recommended action

People from the local community had unauthorised access to the Project work sites and were also without Personal Protective Equipment (PPE).

Safety of the public as well as the security of the site is compromised.


SOL had conducted a socialisation session with communities from 8 villages regarding safety community issues. The communities were advised on the risks of illegally accessing Project sites.

However, people were still observed to be in the project site areas. SOL is to continue health and safety efforts, as well as maintaining security in order to avoid villagers entering the Project site.



62

Appendix E. Supplementary ESIA for SIL-3n and NIL-3n Developments



63

Appendix F. Land Acquisition Plan for SIL-3n Pipeline



64

ADB Asian Development Bank

AMDAL (Indonesia's) Environmental Impact Assessment Report

ANDAL (Indonesia's) Environmental Impact Analysis Report

BAP Biodiversity Action Plan

CSR Corporate Social Responsibility

EBTKE (Indonesia's) Renewable Energy and Energy Conservation (directorate under Energy and Mineral Resource Ministry Republic of Indonesia)

ER External Relations

ERP Emergency Response Plan

ESAP Environmental and Social Action Plan

ESIA Environmental and Social Impact Assessment

ESMP Environmental and Social Management Plan

ESMS Environmental and Social Management System

H&S Health and Safety

H2S Hydrogen Sulfide

HAL Halliburton

HDEC Hyundai Engineering and Construction

HSE Health, Safety and Environment

IFC International Finance Corporation

IP Indigenous People

IPP Indigenous Peoples Plan

ISP Integrated Social Program

JBIC Japan Bank for International Cooperation

LECM Low Emission Compact Muffler

LTI Lost Time Injury

NIL Namora I Langit (northern portion of the Project area)

PAH Project Affected Households

PLN Perusahaan Listrik Negara

PT PP Main local sub-contractor under HDEC

RKL-RPL (Indonesia's) Environmental Management and Monitoring Plan

SCBA Self-Contained Breathing Apparatus

SIL Silangkitang (southern portion of the Project area)

SLIP Supplementary Lenders Information Package

SOL Sarulla Operations Limited

UNSG Unocal North Sumatera Geothermal

Glossary

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