Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized I. Basic Information Date prepared/updated: 03/03/2010 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE Report No.: AC5170 1. Basic Project Data Country: Indonesia Project ID: P117323 Project Name: Indonesia Power Transmission Development Project Task Team Leader: Leiping Wang Estimated Appraisal Date: February 18, Estimated Board Date: May 25, 2010 2010 Managing Unit: EASIS Lending Instrument: Specific Investment Loan Sector: Power (100%) Theme: Infrastructure services for private sector development (100%) IBRD Amount (US$m.): 225.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 30.00 30.00 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) [ ] No [ ] 2. Project Objectives The development objective of the proposed project is to increase the capacity of the power transmission systems in Java and south-central Sumatra to meet increasing electricity demand. 3. Project Description The Project has two components with a total investment cost estimated at US$ 255 million, each of which is described below. Component 1: Expansion and Construction of Transmission Substations in the Java-Bali System: This component includes the expansion of four 500/150 kv and twenty two 150 kv/20 kv existing substations by adding one or two new transformers and associated equipment at each substation, and construction of one new 150 kv/20 kv substation in Java. Component 2: Upgrading and Expansion of Transmission Substations in South-central Sumatra: This component includes upgrading five existing substations system from 150 kv to 275 kv by adding one or two new 275/150 kv transformers and associated equipment at each substation, and expanding ten existing 150 kv/20 kv substations by
adding one or two new transformers and associated equipment at each substation in south-central Sumatra system. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The subprojects are located in various provinces in Java and in Central and South Sumatra. The key project activity is to install new transformers and associated equipment in existing 500 kv, 275 kv and 150 kv substations. There are forty one substations that will be either upgraded or reinforced and one new substation (Millennium) that will be constructed within an industrial complex on vacant land which the industrial part developer formally transferred to PLN. Three types of subprojects are identified: (i) subprojects implemented within the existing fence of an existing substation and no land acquisition involved (thirty six subprojects); (ii) subprojects implemented adjacent to an existing substation site, requiring some land acquisition (four subprojects) and (iii) the Millennium subproject involving the construction of a new substation but not involving land acquisition because the land was transferred to PLN without costs from the owner of the industrial zone, to which the substation will supply electricity. Environment screening has identified the following potential impacts of these subprojects: (i) impacts during construction associated with movement of men, machinery and materials (noise, dust, chance find of cultural artifacts, prohibition of PCBs, worker exposure to electromagnetic fields (EMF) where an existing substation is present); (ii) impacts during operation including worker health and safety issues associated with EMF, noise and possible transformer cooling oils. Land acquisition process, including public consultation and satisfactory compensation for the population residing in the project area is the main social issues in the project. Since land acquisition is limited, impacts on the individual PAP is normally modest and limited in the acquisition of small piece of land or cutting down of few trees. Site visits and screening undertaken by the task team has determined that Indigenous Peoples as defined by OP 4.10 are not present in, nor have collective attachment to the project area. The recent fire incidents that occurred in a 500/150 kv substation in Jakarta region prompted the need to review the adequacy of the Emergency Preparedness and Response procedures and Worker Health and Safety requirements of PLN. In addition, the project involves expansion of existing transformer substations and thus any past environment liability of these substations needs to be identified. Under the project, Lahat 150/20 kv substation in south Sumatra will be upgraded to 275/150/20 kv by adding two 275/150 kv transformers, each of 500 MVA capacity and associated equipment to be installed on a plot of land adjacent to the existing substation. In addition, a new 150/20 kv transformer of 30 MVA will also be installed to an empty lot of land within the existing substation. Two new coal thermal power plants, one
already under construction ( 2@115 MVA) to be operational in 2011 and the other (2x100MW) in the planning stage to be operational after 2013, will be connect to the existing 150/20 kv Lahat substation through two associated 150 kv transmission lines, one under construction and one at planning stage. The relationship between Lahat substation upgrading and these projects have been clarified as described below. 5. Environmental and Social Safeguards Specialists Mr Bernard Baratz (ECAVP) Ms Ninin K. Dewi (EASIS) Mr Andrew Daniel Sembel (EASIS) 6. Safeguard Policies Triggered No Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Two generic Environment Management Plans (EMPs) have been prepared for all subprojects identified for investment under the project except Millennium 150/20 kv substation, for which a specific EMP has been prepared. A Land Acquisition and Resettlement Plan (LARAP) has been prepared for four subprojects in Sumatra that require land acquisition. The EMPs and LARAP have been reviewed by the Bank and found satisfactory. (1) Environment Assessment: Based on the documents furnished by PLN, the Bank has concluded that impacts are likely to be modest, non sensitive and reversible, and in every case, mitigation measures can be designed to reduce the negative impacts. For both components, there are no conservation areas or cultural sites within 10 kms of any of the substation the area. All the components are classified as Category B, as defined by paragraph 8(b) of OP 4.01. Expected impacts during construction include (i) increased level of dust and noise from the use and movement of machinery; (ii) non toxic solid waste during construction; (iii) oil spill or leakage from machinery or transformers; (iv) prohibition of PCB and (v) worker health and safety from existing EMF. Impacts during operation include (i) oil leak from transformers; (ii) fire and emergency preparedness; (iii) solid wastes and (iv) worker health and safety.
The Emergency Preparedness and Response procedures and Worker Health and Safety requirements of PLN were reviewed by the Bank team and found to be consistent with international good practice. (2) Resettlement Four subprojects in Sumatra involve land acquisition with no resettlement or impacts on building structures. The subprojects require acquisition of 3.9 ha of permanent land and 6.9ha of land for Right of Way (ROW) of associated transmission lines, which will be temporarily affected during construction and subject to limited use during operation. 17 households have their field or garden land to be acquired; 24 households have their agricultural trees to be cut under ROW. ROW land will have limitation on land use to ensure safety. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: No long term adverse impact is envisaged due to the project activities. The reinforcement of substations will result in improvement of power supply adequacy and quality in the project areas, which is an ingredient for economic growth and household quality of life. A due diligence was conducted to identify any potential environmental and social liabilities of the existing substations where the Bank will finance expansion or upgrading subprojects, any physically connected projects, and other potential corporate reputation risks, such as the potential climate changes impacts of the project. The due diligence confirmed that PLN has acceptable environmental, health and safety policies in places and no potential environmental and social liabilities were identified in the existing substations. In addition, none of the substations were located close to areas of ecological or cultural significance. The due diligence also concluded that all the other projects which are physically connected to the Bank financed projects, are not directly or significantly related to the project activities as defined by OP 4.12 as presented below: - A due diligence was undertaken for two coal thermal power plants and the two associated 150 kv transmission lines to be connecting to Lahat 150/20 kv substation. The due diligence shown that the timing of the two power plants, coincidentally overlap with the Bank-financed Lahat subproject, but they are not required or necessary for the subproject to achieve its objective; and therefore, they are not directly or significantly related to the Bank#s activity as defined in OP 4.12. The review also found that these projects are in compliance with national regulations on land acquisition and compensation, as well as environmental policies and regulations.. - The Bank team has also undertaken due diligence of the land obtained by PLN for Millennium 150/20 kv substation. PLN obtained the land through a land transfer from a private company (PT. Bumi Citra Permai), the owner of the industrial zone to which the substation will supply electricity. The review has confirmed that the process was in compliance with national regulations and no controversial issue was recorded. The Milenium substation will deliver power to a number of industries in the industrial park.
The review also established that all industries that could be receiving power from the substation are operating with valid operating permits and are in compliance with all Indonesian legal requirements (including environment). Finally, the proposed project will eliminate transmission bottlenecks in the two most important power systems in Indonesia. This will allow PLN to optimally dispatch its generation system and reduce transmission losses which will result in fossil fuel savings and by that means, reduction of greenhouse gas emissions. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. For those subprojects involving land acquisition, alternatives were considered to minimize impacts on resettlement and environment. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The borrower has prepared EMPs for all subprojects and LARAP for four subprojects that involved land acquisition. The EMPs and LARAP have been reviewed by the Bank and found satisfactory. Environment impacts will be mitigated according to measures set out in the EMPs. Measures include the following: (i) the construction site will be sprinkled with water (ii) construction activities will be performed only during normal working hours; If construction activities have to be performed before or after the specified time limits, the local society must be notified in advance; (iii) Contaminated soils and solid waste will be removed and disposed to sites approved by local authorities; (iv) Bidding documents shall prohibit procurement of equipment containing PCB.. For the construction phase, the EMP for each substation will be included in the bidding documents and contracts as legal obligations for contractors to implement. During operation, the EMP will be transferred to the respective operating entities for implementation. Permanent land will be compensated in the form of land substitution or cash at market value. The crop or trees will be compensated at market value or be replaced. Impacts to land under ROW due to temporary use by PLN during construction and land use limitation by owners during operation will be compensated at negotiated values to be agreed with the affected households and in consultation with local governments. Two Regional Project Offices at Java and Sumatra under PLN are directly responsible for preparation and implementation of EMPs and LARAP. PLN and the Regional Project Office in Java have experience with implementation of WB financed projects. They have involved broadly similar safeguard issues and mitigation and are experienced with WB requirements regarding preparation and implementation of EMPs and LARAPs. The Regional Project Office in Sumatra has no previous experience with the WB project but has four competent environment and social specialists as its permanent staffs. They are very experienced with national regulations as land acquisition and environment management is a common practice in PLN. During preparation, environment and social staffs of the two project offices were received training from the Bank team. They have prepared satisfactory EMP and LARAP for the subprojects under their responsibility. During supervision, further training will be provided to PLN staffs in charge of social and
environment management. Progress of EMP and LARAP implementation will be carefully monitored. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Public consultations on EMP were held for those subprojects in Sumatra (type 2) that involves land acquisition and for Millennium subproject (type 3). For subprojects that will be implemented within their existing premise, public comments were solicited through posting the EMPs on PLN website and in the respective project offices. Announcements in local newspapers were made for this consultation. Stakeholders concerns were incorporated into the project design and EMPs. Consultation has been conducted effectively throughout the land compensation process including inventory and public meetings. The process has been described in the LARAP. All the EMPs and LARAP in Bahasa have been disclosed in public. Draft EMPs and RAP have been disclosed in accordance to the Bank#s policy and sent to the Infoshop in Washington DC in February 2010. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Date of receipt by the Bank 02/02/2010 Date of "in-country" disclosure 02/12/2010 Date of submission to InfoShop 02/03/2010 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Date of receipt by the Bank 02/02/2010 Date of "in-country" disclosure 02/08/2010 Date of submission to InfoShop 02/03/2010 Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP.
If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank s Infoshop? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? No No
D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Leiping Wang 03/01/2010 Environmental Specialist: Mr Bernard Baratz 03/01/2010 Social Development Specialist Ms Ninin K. Dewi 03/01/2010 Additional Environmental and/or Social Development Specialist(s): Mr Andrew Daniel Sembel 03/01/2010 Approved by: Sector Manager: Ms Sonia Hammam 03/02/2010 Comments: