Environmental and Social Issues – Port Development &PPP Pilot Projects in Indonesia

16 June 2014

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In this session we will:A. Review the legislation and regulatory framework

o PPP Regulationo Environmental and Social Study (EIA)o Land Acquisition and Resettlement Plan (LARAP)

B. Environmental Issues for Port Projects o Considerationo Dredged material managemento Marine/Coastal Ecology o Air Emissionso Waste Management (General waste, waste water, solid waste)o Hazardous materials and oil managemento Noiseo Biodiversity & Ecological Resourceso Traffic managemento Visual Impacto Sustainability and Climate Change

C. Social Issues for Port Projects o Social & Community Amenitieso Ecosystem Goods/Serviceso Public Health and Safetyo Occupational Health and Safety

D. Land Acquisition in the Public Interesto General Issue from other experienceso Potential issue for port projecto Mitigation

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A. Review of Legislation & RegulatoryOverviewA.1 PPP Regulation

– PPP project requiring EIA and LARAP – PPP Stage of implementation of

Cooperation project

A.2 Environmental and Social Study – Indonesian Regulation – AMDAL

o Related Regulationso Activity Required AMDALo AMDAL Commencemento Public Involvement and

Participationo AMDAL Componentso Environmental Components

Regulationo AMDAL Processo Environmental Permito AMDAL Permitting Process

– International Framework – ESIAo Project Requiring International

Fundingo IFC Performance Standard

– Comparison Summaryo ESIA Process vs. AMDAL Process

A.3 Land Acquisition– National Standard for Land Acquisition

o Related Regulationo Basis Requiremento Basis Policyo Grievance Mechanismo Flow Activitieso LAP and LARAPo Parties Involved

– International Standard for Land Acquisitiono International Standard

Requirementso Basis Requiremento Basis Policyo Grievance Mechanismo Flow Activitieso LAP and LARAPo Parties Involved

– Comparison Summaryo Gap between National Standard

and International Standard

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A.1 PPP RegulationPPP projects require EIA and LARAPThere are two regulations on PPP that mention the need of Land Acquisition and Resettlement Plan (LARAP) and Environmental Impact Assessment (EIA) to support a PPP Project including :

–Bappenas Regulation No. 3 /2012 (Operating Guideline Manual for Public and Private Partnership in Provision of Infrastructure)

o Environmental Analysis (Article 4 point 3b) and Environmental and Social Compliance (Article 7 point 4a)

o Land Acquisition and Resettlement Action Plan (Article 4 point 3a)–Ministry of Transportation Regulation No. PM 83/2010 (Guidelines for Implementing Public Private Partnership in Provision of Transport Infrastructure)

o Environmental and Social Study (Appendix section IV.A.2.4 and section C.2.a.4)

EIA and LARAP process will refer to the related regulation which will be described in the following sections

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A.1 PPP RegulationGrey Area in the Regulation - AMDAL

–PPP Regulations require AMDAL and land acquisition documents as part of the process. However, the starting times are not clear. –AMDAL regulation stipulates that the AMDAL process cannot begin until the project is approved and is publically announced–The AMDAL committee cannot be formed until the project is approved/announced–Land acquisition cannot officially commence until the project is approved/announced.

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A.1 PPP RegulationPPP Stage of Implementation of Cooperation Project

Identification and selection of Cooperation

Project

Identification and selection of Cooperation

Project

Determination of Priority

Determination of Priority

Identification and selection of Cooperation

Project

Identification and selection of Cooperation

Project

Readiness Study of Cooperation

Project

Readiness Study of Cooperation

Project

Completion of Feasibility Pre-

Study

Completion of Feasibility Pre-

Study

•Procurement Plan of Business entity•Implementation of Procurement of BU•Preparation of Signing Cooperation Contract

•Procurement Plan of Business entity•Implementation of Procurement of BU•Preparation of Signing Cooperation Contract

Planning of Implementation Management of

Cooperation Contract

Planning of Implementation Management of

Cooperation Contract

Management of Implementation of

Cooperation Contract

Management of Implementation of

Cooperation Contract

Output:List of Project Priority of Documents of

Preliminary Study

Output:List of Project Priority of Documents of

Preliminary Study

Output:Obtaining of Funding; EPC

Contract; Operational

Contract

Output:Obtaining of Funding; EPC

Contract; Operational

Contract

Output:Documents of Feasibility Pre-

Study

Output:Documents of Feasibility Pre-

Study

Output:List of Project Priority of Documents of

Preliminary Study

Output:List of Project Priority of Documents of

Preliminary Study

Output: Documents of Cooperation

Contract Documents of Security &

Regress Contract

Output: Documents of Cooperation

Contract Documents of Security &

Regress Contract

Confirmation/Approval of Provision of Government

Support and/or Government

Security

Confirmation/Approval of Provision of Government

Support and/or Government

Security

Process of Application of Need of Government Support and/or Government Security

Process of Application of Need of Government Support and/or Government Security

Process of allocation, clearing, supervision & monitoring of Provision of Government

Support and/or monitoring & evaluation of implementation of Security Contract &

Regress Contract

Process of allocation, clearing, supervision & monitoring of Provision of Government

Support and/or monitoring & evaluation of implementation of Security Contract &

Regress Contract

ENVIRONMENTAL STUDY / PJPKENVIRONMENTAL STUDY / PJPK ENVIRONMENTAL STUDY /BUENVIRONMENTAL STUDY /BU

PROSPECT OF LAND ACQUISITIONPROSPECT OF LAND ACQUISITION

Output:Periodical Report

of Implementation of PK Management

Output:Periodical Report

of Implementation of PK Management

Source : Bappenas Regulation 3/2012

2 - 5 Months 6 - 9 Months 10 - 23 Months 9 - 12 Months

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A.2 Environmental and Social StudyOverview

A.2.1 Indonesian Regulation – AMDALo Related Regulationso Activity Required AMDALo AMDAL Commencemento Public Involvement and Participationo AMDAL Componentso Environmental Components Regulationo AMDAL Processo Environmental Permito AMDAL Permitting Process

A.2.2 International Framework – ESIAo Project Requiring International Fundingo IFC Performance Standard

A.2.3 Comparison Summaryo AMDAL Process vs. ESIA Process

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A.2.1 Indonesian Regulation - AMDALRelated Regulations

– Indonesian Government Law No. 32 of 2009 (Protection and Management of Environment),

– Government Regulation No. 27 of 2012 (Environmental Permit), – Decree of the Minister of State for the Environment No. 05 of

2012 (The types of Businesses and/or Activities Required to comply with Environmental Impact Assessment)

– Decree of the Minister of State for the Environment No. 16 of 2012 (Guidelines for Preparation of Environmental Documents).

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A.2.1 Indonesian Regulation - AMDALActivity requiring AMDAL

Annex 1 to MOE Regulation 5/2012 provides a list of activities which will require preparation of an AMDAL. Pursuant to Annex 1 of MOE Regulation 5/2012 a port development project will require an AMDAL/EIA to be prepared if it involves:

•Construction of a jetty (sheet pile or open pile) with a length of more than 200m or size of more than 6,000m2;•Construction of a jetty with a massive size;•Construction of a breakwater with a length of more than 200m;•Construction of a floating facility with a capacity of more than 10,000 DWT; and•Reclamation with a minimum reclamation size of 25 hectares, minimum disposed material of 500,000 m3, or minimum length of 50m.

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A.2.1 Indonesian Regulation - AMDALAMDAL Commencement

•Under Government Regulation (GR) No. 27/2012, the AMDAL document can be assessed by an AMDAL Committee when the location of the port is in accordance with the spatial plan and master plan of the port jurisdictional area.

•The AMDAL Committee consists of The AMDAL Committee will be KLH/environmental agency and other related institutions depending on the level of project scope consist of (but not limited to) member of Ministry of Public Works, Ministry of Transportation, Bappeda, Spatial Planning Agency, Transportation Agency, Public works agency, marine and fishery agency, experts from university (environmental, social, etc.), NGO, and impacted community

•The AMDAL can only be compiled by a person/company that has a certificate of competence of an AMDAL compiler. Under normal circumstances, the agency that would submit the AMDAL to the committee is the Port Authority.

•If the project is implemented as a PPP, then the AMDAL should be prepared by the Government Contracting Agency (GCA) (Penanggung Jawab Proyek Kerjasama)

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A.2.1 Indonesian Regulation - AMDALPublic Involvement and Participation

• Requirements based upon Decree of Bapedal Head no.8 Year 2000

• The Port Authority (who is submitting the AMDAL as the project proponent) will undertake public announcement and consultation in line with the regulatory requirements for engaging all affected stakeholders and the observers appointed to overview the AMDAL process

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A.2.1 Indonesian Regulation - AMDALPublic Involvement and Participation

• The Port Authority will initiate all communications with the AMDAL Committee, Environmental Agencies, and relevant local government, institution, NGOs and other stakeholders associated with the AMDAL activities

• The Port Authority should facilitate and organise public announcements pertaining to the AMDAL activities through mass media, arrange and conduct the required public consultation process with the communities within the affected Regency, sub districts and any other areas that are considered as part of the study area

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A.2.1 Indonesian Regulation - AMDALAMDAL Components

Terms of Reference (KA ANDAL)

•Includes: Introduction (Background, Purpose, Study Implementation), Scooping (Project Description, Interrelationship the proposed activity with other activity, Baseline Study, Public Consultation Result, Hypothetical Impact, Focusing Subject Study) , and Methodology (Data Collection and Analysis, Important predicted impact method, important predicted impact method) •The results of the public announcement and participation are incorporated into the document•It is submitted to the regional authority by the AMDAL appraisal committee. •It is assessed by a technical team•Subject to a satisfactory assessment, the committee will approve the KA ANDAL

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A.2.1 Indonesian Regulation - AMDALAMDAL Components

ANDAL, RKL and RPL

•The ANDAL analyses the impact of the project based upon the baseline condition and the anticipated project impacts•The RKL and RPL provide the mitigation measures and monitoring requirements for project implementation•The ANDAL, RKL and RPL are submitted to the regional authority by the AMDALL appraisal committee•These parties will coordinate to review the document, provide comments, and approve the final AMDAL

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A.2.1 Indonesian Regulation - AMDALEnvironmental Component Regulations

Environmental Component

Reference Standard

Concerning

Surface Water Quality Government Regulation No.82/2001

Water Quality Management and Water Pollution Control

Air Quality Government Regulation No.82/2001

Air Pollution Control

Noise Level Minister of Environment Decree 48/ 1996

Noise level threshold

Vibration Minister of Environment Decree No.49/ 1996

Vibration level threshold

Odour Minister of Environment Decree No.50/1996

Odour level threshold

Groundwater Quality Minister of Health Regulation No.416/1990

Water Quality Requirements and Control

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A.2.1 Indonesian Regulation - AMDALAMDAL Process

• AMDAL is a process• Consideration at National

Provincial or Regency Level, depending on the footprint of the project

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A.2.1 Indonesian Regulation - AMDALEnvironmental Permit

• The Port Authority of GCA will submit an application for environmental permit to the mayor or Bupati.

• The application is supplemented with: – AMDAL documents & letter of feasibility– Business establishment documents– Business activity profile

• The environmental permit application will be publically announced

• The community/stakeholders may comment• If no changes are required, the permit is issued and it

is announced to the public

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A.2.1 Indonesian Regulation - AMDALAMDAL Permitting Process

• AMDAL generates a letter of Environmental Feasibility

• Then follows the Environmental Permitting Process

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A.2.2 International Framework - ESIAProjects Requiring International Funding

• If international funding is required, this will trigger an International Environmental and Social Impact Assessment (ESIA)

• The system to be applied depends on the lender (e.g. IIF, AusAID, JICA, ABD, IFC etc.)

• IFC Guidelines (EHS Guidelines and Performance Standards) are usually a good guide to what is required.

• Most follow a convention called the Equator Principles

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A.2.2 International Framework - ESIAIFC Performance Standards

• Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts

• Performance Standard 2: Labour and Working Conditions • Performance Standard 3: Resource Efficiency and Pollution

Prevention • Performance Standard 4: Community Health, Safety, and

Security • Performance Standard 5: Land Acquisition and Involuntary

Resettlement • Performance Standard 6: Biodiversity Conservation and

Sustainable Management of Living Natural Resources • Performance Standard 7: Indigenous Peoples • Performance Standard 8: Cultural Heritage

Per IFC’s Policy on Environmental and Social Sustainability (January 2012)

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A.2.2 International Framework - ESIAESIA Process

Asse

ssm

ent

Screening

Scoping

Baseline Studies

Impact Prediction and Evaluation

Mitigation

Environmental & Social Action Plan

ESHIA

Public Consultation

Alternatives & Design Modification

Consultation

Public Consultation

No ESHIA Required

The Environmental, Social and Health Impact Assessment Process

No Significant Impacts

Potential Impacts are expected

Refine/Improve Project Design

Refine/Improve ESAP

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A.2.2 International Framework - ESIAESIA Guidelines

• IFC guidelines consider environmental impacts according to their Sustainability and EHS Guidelines, there are three that have relevance for port projects they are:– Policy on Environmental and Social Sustainability (January

2012)– Environmental, Health, and Safety General Guidelines (April

2007)– Environmental, Health and Safety Guidelines for Ports,

Harbors, and Terminals (April 2007)

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A.2.3 Comparison SummaryESIA Process vs. AMDAL Process

• Very Similar processes• Environmental elements very close, however ESIA also

addresses: – Climate change and sustainability– Visual impact– May involve stricter maximum allowable limits

• Social Elements Differ (especially with respect to Land Acquisition)– Wider scope of social survey for ESIA– AMDAL considers the Indonesian legal framework for land

acquisition (Law No. 2, 2012)– IFC extends to the “informal” loss of income– IFC extends to squatters– Big emphasis on informed consent, community consultation and

restoration of livelihoods

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A.3 Land AcquisitionOverviewA.3.1 National Standard for Land Acquisition

o Related Regulationo Basis Requiremento Basis Policyo Grievance Mechanismo Flow Activitieso LAP and LARAPo Parties Involved

A.3.2 International Standard for Land Acquisitiono International Standard Requirementso Basis Requiremento Basis Policyo Grievance Mechanismo Flow Activitieso LAP and LARAPo Parties Involved

A.3.3 Comparison Summaryo Gap between National Standard and International Standard

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A.3.1 National Standard for Land AcquisitionRelated Regulations

– UUPA 5/1960

– Regulation of Ministry of Home Affairs No. 15/1975 (Provisions Regarding of Land Acquisition Procedures) (private and government)

– Indonesian Law No. 2/2012 (Land Procurement for Development in the public interest) (commercial and public interest) (example port development on Article 10 d)

– Presidential Regulation 71/2012 (Land Acquisition Implementation for development of public interest) (commercial and public interest)

Note – Presidential Decree 55/1993 (public interest only)– Presidential Regulation No. 36/2005 amended by Presidential

Regulation No. 65/2006 (commercial and public interest)

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A.3.1 National Standard for Land AcquisitionBasis Requirement

Law No 2/2012 and PR 71/2012 Requirement:

•National, Provincial and Regional Spatial Planning

•Developmental Priorities

•Socio – Economic Survey

•Location Feasibility

•Cost Analysis and Development Benefit

•Estimation of Land Value

•Environmental and social impact

•Other Study

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A.3.1 National Standard for Land AcquisitionBasis Policy - Involuntary Resettlement

Involuntary Resettlement Regulated Under:

• Law No 2/2012 – umbrella regulation of land acquisition

• Presidential Regulation No. 71/2012

• Head of BPN Regulation No. 5/2012 – details land acquisition

activities

• MOPA Regulation No. 72/2012 – budget and financial

• MOF Regulation No. 13/2013 – budget and financial

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A.3.1 National Standard for Land AcquisitionBasis Policy - Entitlement Matrix

* Asset Loss is the property that will be impacted by the project (Act No. 2/2012 and PR No.71/2012)

** Eligible parties is the project affected people including land owner, renter, employee, encroacher,

etc.(PR No. 71/2012)

*** Entitlement is having a right to something (Act No. 2/2012 and PR No.71/2012)

Asset Loss* Eligible Parties** Entitlement***

Land Land Right holder Cash Payment

Building Structure Right to Manage Land to Land

Tree & Crops Guardian Resettlement

Object related to land Etc. Shareholding

National Regulation and Policy

Socio Economy Survey(Primary and Secondary)

Ground Check(Site Visit and Observation)

Entitlement Matrix

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A.3.1 National Standard for Land AcquisitionBasis Policy - Entitlement Matrix

Type of Loss base on Act No. 2/2012 and PR No.71/2012•Land•Space above ground and underground•Structure•Tree and crops•Objects related to land•Another Loss can be assessed

Eligibility Parties base on PR No. 71/2012:•Land Rights Holders•Right to Manage Holders•Guardian (nadzir) for waqf land•Owner of formerly traditionally owned land•Customary law community•Party who possesses state land with good faith•Basic holder of land possession•Owner of structures, plants, and other objects related to land.

Entitlement base on Act No. 2/2012 and PR No.71/2012:•Cash payment•land to land•resettlement  •shareholding•Another clausal

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A.3.1 National Standard for Land AcquisitionActivities Flow

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A.3.1 National Standard for Land AcquisitionGrievance Mechanism

• No specific Grievance Mechanism required legally

• As best practice many Land Acquisition processes of Government projects have included a grievance mechanism

• The mechanism allows better communication between the government and the affected parties

• Provides a formal method for addressing issues

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A.3.1 National Standard for Land AcquisitionLAP and LARAP

Land Acquisition Plan:

•Purpose and objectives of development plan•Suitability with the Spatial Planning •Lay of the land/Project Location•Requirement of Land Area•General description of land status•Estimation of implementation of land acquisition•Estimated of time period of development implementation•Estimation of land value•Budget Plan

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A.3.1 National Standard for Land AcquisitionParties Involved (4 Stages)

Law No 2/2012 and PR 71/2012 Planning is conducted by the agency that requires the land, with assistance from the relevant technical agencies or they can be assisted by a designated professional body.

Preparation is conducted by the Governor. The Preparation Team will be established by the Governor and will consist of:

•the mayor (or regent) [bupati or walikota], •SKPD (regional work units), •the agency that requires land, and •other relevant agencies.

In the event of objections from the public, the Governor will establish an Objection Assessment Team consisting of:

•Provincial Secretary or administration official appointed as Chairman, •Head of BPN Regional Office, •the government agency in the local development planning, •the head of Office of the Ministry of Law and Human Rights, •the Mayor or appointed officials, and •academics.

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A.3.1 National Standard for Land AcquisitionParties Involved

Law No 2/2012 and PR 71/2012

Implementation Team consisting of at least: •external valuation team; •officials in charge of Land Acquisition affairs at BPN Regional Office, •head of local land agency, •provincial officials unit in charge of land affairs, •district head, and •headman and/or village head

Submission of results is implemented by BPN and submitted to the agencies that require land.

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A.3.2 International Standard for Land Acquisition International Standard Requirements

• Why follow international standards? • Projects that require international funding• Such as: IIF, World Bank, JICA, ADB, etc.

• What are international standards? • Equator Principles III• World Bank Social Safeguard - OP 4.12 - Involuntary

Resettlement• Specific with IFC Performance Standard 5 : Land

Acquisition and Involuntary Resettlement

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A.3.2 International Standard for Land Acquisition Basic Requirement

IFC PS 5 Planning Requirement

•Final Project Design

•Compensation and Benefit Policy for Displaced Persons

•Community Engagement

•Grievance Mechanism

•Resettlement and Livelihood Restoration Planning and

Implementation

•Plan for Displacement

•Maintain Private Sector Responsibilities Under Government-

Managed Resettlement

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A.3.2 International Standard for Land Acquisition Activities Flow

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A.3.2 International Standard for Land Acquisition Basic Policy - Voluntary and Involuntary Resettlement

• Voluntary resettlement is a willing buyer-willing seller situation,

in which the an agreed upon outcome is established.

• Involuntary resettlement may be required for projects in the

public interest, or sometimes for private development.

• Both voluntary and involuntary resettlement should follow

national laws at minimum.

• Involuntary resettlement under international standards may

follow IFC or World Bank Guidelines (IFC Performance

Standard 5 or World Bank Social Safeguard - OP 4.12 -

Involuntary Resettlement, which provides more detail)

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A.3.2 International Standard for Land Acquisition Basis Policy - Entitlement Matrix

*) Asset Loss is the property that will be impacted by the project

**) Eligible parties is the project affected people including land owner, renter, employee, encroacher,

etc.

***) Entitlement is having a right to something

Asset Loss* Eligible Parties** Entitlement***

Land Land Right holder Cash Payment

Building Structure Right to Manage Land to Land

Tree & Crops Guardian Resettlement

Object related to land Etc. Shareholding

International Regulation and Policy (IFC – PS 5)

Socio Economy Survey(Primary and Secondary)

Ground Check(Site Visit and Observation)

Entitlement Matrix

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A.3.2 International Standard for Land Acquisition Basis Policy – IFC PS 5 - Entitlement MatrixType of Loss•Physical Displacement•Economic Displacement•Including temporary or permanent, and commercial area

Entitlement base •Cash compensation•Replacement land •Replacement Cost•Resettlement•No depreciation of structure•the entitlements of displaced persons provided under applicable national laws and regulations•etc.

Eligibility Parties •Owner of asset•Employers/Worker•Squatter, Illegal settlement•All parties that identify as Project Affected Peoples (such as: Vulnerable peoples)

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A.3.2 International Standard for Land Acquisition Grievance Mechanism

IFC PS 5:

•Establish a grievance Mechanism

•Receive and address specific concerns about compensation and relocation raised by displaced persons or members of host communities in a timely fashion, including a recourse mechanism designed to resolve disputes in an impartial manner.

•Timely redress of grievances through an effective and transparent grievance mechanism is vital to the satisfactory implementation of resettlement and to completion of the project on schedule.

•Affected households and communities should be informed, as part of the consultation effort, of the process for registering grievances, should have access to this grievance mechanism, and know the possibilities of legal recourse available. It should be readily accessible to all and provide for fair, transparent and timely redress of grievances and special accommodations for women and vulnerable and marginalized groups to voice their concerns or make complaints.

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A.3.2 International Standard for Land Acquisition LARAP - Integrated with PCDP

IFC PS 5, including:

•Land Acquisition and Resettlement Action Plan (LARAP) – to document the plan, policy, affected parties, and results of land acquisition

•The LARAP should include a Resettlement and Livelihood Restoration Planning and Implementation

•Create a Public Consultation and Disclosure Plan to document the plan and implementation of public interaction and consultation

(note: The consultation process should ensure that women’s perspectives and other minority groups are obtained and their interests factored into all aspects of resettlement planning and implementation)

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A.3.2 International Standard for Land Acquisition LARAP – Outline IFC PS 5

Outline of a Land Acquisition and Resettlement Action Plan

•Description of the project•Potential impacts•Objectives and studies undertaken•Regulatory framework•Institutional framework•Stakeholder engagement•Socioeconomic characteristics•Eligibility•Valuation of and compensation for losses•Magnitude of displacement•Entitlement framework•Livelihood restoration measures•Resettlement sites•Housing, infrastructure, and social services•Grievance procedures•Organizational responsibilities•Implementation schedule•Costs and budget•Monitoring, evaluation and reporting

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A.3.2 International Standard for Land Acquisition Parties Involved

IFC PS 5Requires a Project to Adopt the Local Standard, including:

•The organizational framework for implementing (identification of agencies responsible for delivery of resettlement measures and provision of services);

•arrangements to ensure appropriate coordination between agencies and jurisdictions involved in implementation;

•any measures (including technical assistance) needed to strengthen the implementing agencies' capacity to design and carry out resettlement activities;

•provisions for the transfer of responsibilities to local authorities to manage facilities and services provided under the project

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A.3.3 Comparison SummaryGaps between National and International Standard

National Standard International Standard

No consideration for vulnerable peoples

Consideration for vulnerable peoples

No compensation to squatters, illegal settlements

Consideration of squatters, illegal settlements

Some entitlements are in a grey area

Clear entitlement structure

No clear requirement for grievance process

Required grievance mechanism

Compensation for physical loss Compensation for physical and economic loss

No consideration for indirectly affected parties

Consideration for indirectly affected parties

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B. Environmental Issues for Port ProjectsConsiderations

• Primary Considerations– Dredged materials management– Marine/Coastal Ecology– Air emissions– Waste Management (General waste, waste water, solid waste)– Hazardous materials and oil management– Noise– Biodiversity & Ecological Resources

• Other Considerations– Traffic management– Visual impact– Sustainability and climate change

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B. Environmental Issues for Port ProjectsDredged Material Management

Construction –Soil contamination –Geotechnical issue–Possibility of soil erosion–Increased sediment suspension (turbidity) in marine water due to the dispersal of dredged sediment–Decreasing the water quality by increasing TSS and turbidity–Possible chemical disturbance to marine and coastal ecology–Habitat removal/degradation –Sea water quality decline

Mitigation–Screening of dredge material–Appropriate disposal of dredge material–Careful selection of dredging method –Reducing the dispersion of contaminants by containment

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B. Environmental Issues for Port ProjectsMarine/Coastal Ecology

Construction –Possible chemical disturbance to marine and coastal ecology–Alternations of marine and coastal habitat caused by changes in sediment structure–Burial of benthic community caused by disposal of sediment–Decreasing light transmission to light-depended organism–Regression of sea grass and meadows–Disturbance of birds and marine animal –Reduced fishery resources and degraded fishery quality for recreational and food gathering activities–Worsening of water pollutionOperation–Oil and mixtures leakages from ships damaging fishery resources, marine biota and habitat–Biodegradation of oil in water reducing dissolved oxygen needed by the biota–Impacted fishery resources by contamination of chemicals from leakages

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B. Environmental Issues for Port ProjectsMarine/Coastal Ecology

Mitigation–Construction : Appropriate planning of construction work, Reducing turbidity by using silt/turbidity curtains, Habitat enhancement or restoration, Environmental monitoring, Periodic inspection of construction activities by enforcement authorities or agencies, careful survey of ecological characteristic and restricting corridors of work.–Operation : habitat enhancement and restoration works such as creation of sea grass habitat for fishery resources recovery, expanding saltmarsh habitat and intertidal sand and mud flats for prey species, measuring in environmental management related to oil spoil and leakages, dust control, water quality protection and noise reduction measures.

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B. Environmental Issues for Port ProjectsAir Emissions

Construction–Dust particulates generation from construction activities including dredge/fill activity, transportation, equipment, grading/clearing, and onshore activity.–Exhaust emission from fuel consumption of diesel-fueled heavy equipment with emit toxic and some carcinogenic,Operation–Emissions from ships, cargo handling equipment, port-related truck trips–Exhaust emission from construction vehicle, plant, machinery and vessels.

Mitigation–Construction - Minimize Dust Emissions, Exhaust Emission, and Volatile emission–Operation - Efficient off-loading operations and regulated limits on idling time

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B. Environmental Issues for Port ProjectsAir Emissions

Threshold Limit

Parameters Averaging PeriodIndonesian Standards* IFC**units concentration units concentration

Ozone 1 hour μg/Nm3 235 8-hour daily maximum

- - μg/m3 100

1 year μg/Nm3 50 Carbon monoxide (CO) 1 hour μg/Nm3 30,000

24 hour μg/Nm3 10,000 Nitrogen Dioxide (NO2) 1 hour μg/Nm3 400 μg/m3 200

24 hour μg/Nm3 150 1 year μg/Nm3 100 μg/m3 40

Sulfur Dioxide (SO2) 10 minutes - μg/m3 5001 hour μg/Nm3 900

24 hour μg/Nm3 365 μg/m3 201 year μg/Nm3 60

Total Suspended Particles (TSP) 24 hour μg/Nm3 230 1 year μg/Nm3 90

PM10 24 hour μg/Nm3 150 μg/m3 501 year - - μg/m3 20

PM2.5 24 hour μg/Nm3 65 μg/m3 251 year μg/Nm3 15 μg/m3 10

Lead (Pb) 24 hour μg/Nm3 2 1 year μg/Nm3 1

Source : *) Government Regulation No. 41/1999 concerning on Air Pollution Control**) IFC EHS General Guidelines

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B. Environmental Issues for Port ProjectsWaste Management (general, waste water, solid waste)

Construction–Waste from demolition, clearing and roadway construction–Hazardous, solid, and waste water during constructionOperation–Inert solid waste from cargo packaging and administrative office–Potentially hazardous waste associated with vehicle maintenance operation (lubricating oils and engine degreasing solvents)–Effluent and solid waste of visiting ships

Mitigation-Construction, re-used dredged material, recycled waste concrete, proper and categorized waste storage, keep clean area, institutionalized hazardous waste SOP.-Operation, providing adequate effluents and waste management, prohibited marine discharge of solid and hazardous, appropriate storage of waste water from large ships by providing waste water treatment facilities connected to municipal waste water treatment

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B. Environmental Issues for Port ProjectsWaste Management (general, waste water, solid waste)

Threshold limit – marine water quality for port areaNo Parameter Unit Seawater Quality Standard

Physical1 Clarity m >32 Odor - natural3 Total Suspended Solids (TSS) mg/L 804 Waste - -5 Temperature °C Natural6 Oil layer - -

Chemical1 pH 6.5 - 8.52 Salinity o/oo Natural3 NH3-N mg/L 0.34 Sulphide (H2S) mg/L 0.035 Total Hydrocarbon mg/L 16 Total Phenol mg/L 0.0027 Total PCB (polychlor biphenil) µg/L 0.01

8 Detergent mg/L MBAS 1

9 Oil and Grease mg/L 510 TBT (tri butil tin) µg/L 0.01

Dissolved Metals1 Mercury mg/L 0.0032 Cadmium (Cd) mg/L 0.013 Copper (Cu) mg/L 0.054 Lead (Pb) mg/L 0.055 Zinc (Zn) mg/L 0.1

Microbiology

1 Total coliform MPN/100 ml 1000

Source : MoE Decree 51 of 2004 (Appendix I – for Marine Port Area)

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B. Environmental Issues for Port ProjectsHazardous materials and oil management

Construction–Hazardous liquids (fuels and chemicals) –Hazardous waste (contaminated soil, waste fuel and lubricants, oil filters and batteries)Operation–Hazardous liquids (fuels and chemicals)–Residual paints and solvents in containers.

Mitigation-Construction, hazardous liquids (fuels and chemicals) stored in accordance with a dangerous goods management plan in secure bunded compounds during construction, Storage-treatment and transportation of contaminated soils, and Institutionalized hazardous waste SOPs such as proper and covered storage.-Operation, Institutionalized hazardous waste SOPs such as proper and covered storage

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B. Environmental Issues for Port ProjectsNoise

Construction –Noise from equipment and mobilization for land reclamation activity and construction of access road.Operation–Noise and low-frequency vibration from heavier traffic volumes and increased truck traffic.

Mitigation–Construction, regularly fitted appropriate muffler, maintained, and operated efficiently for all machinery and vehicles.–Operation, intelligent loading for trucks and prohibiting idling of vehicles from nearby receptors.

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B. Environmental Issues for Port ProjectsNoise

Threshold Limit

ReceptorIndonesian Standard*

IFC**

Day/night Day night

Work Space

Houses and Residential Areas 55day/45(night) 55 45

Trade and Services 70 70

Offices and Trade 65 70

Green Open Space 50

Industry 70 70

Government and Public Facilities 60 55 45

Recreation 70

Environment of Activity

Hospitals 55

Schools 55 55 45

Religious Buildings 55 55 45

Institutional 55 45Source : *) MoE Decree No. 481996 concerning on Noise Level Standard**) IFC EHS General Guidelines – Table 1.7 Noise

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B. Environmental Issues for Port ProjectsBiodiversity & Ecological Resources

Construction & Operation–Terrestrial fauna habitat destruction–Polluted run off –Polluted roadway –Loss of estuarine and beach habitat –Local ecology due to dust and exhaust emissions from the construction vehicles and machinery

Mitigation–Limited Vegetation Clearance –Rehabilitate the destroyed mangrove forests–Consider native plant species for landscaping works–Protect remaining mangroves area surrounding project–Appropriate waste storage to limit proliferation of pests.

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B. Environmental Issues for Port ProjectsTraffic Management

Construction-Pavement damage during construction causing road safety issues-Traffic jams along the transport routes affecting local business and communities-Increase local traffic increasing noise levelsOperation-Congestion, increased truck movement to and from the port along local roads could result in congestion and nuisance.

Mitigation-Construction, road servicing and maintenance, traffic management plan and identified heavy vehicles routes. -Operation, implement a traffic management plan and traffic calming measure.

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B. Environmental Issues for Port ProjectsVisual Impact

Construction–Extensive activity on the dock during construction–Night light spill from the project site and during construction at nightOperation–The existence of the port and vessels docking for loading and unloading might create a visual impact to neighbors.–Lighting for port operation at night –Unwanted visible emission from trucks, ships, and cargo

Mitigation–Green belt on sore to reduce any unpleasant view–Storage located away from road or residences–Reducing the use of excess lighting in port areas nearby sensitive viewer Requiring down lighting instead of up lighting–Use color and materials consistent with existing visual environment and minimize potential for reflection

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B. Environmental Issues for Port ProjectsSustainability and Climate Change

Construction-Cumulative GHG emissions from work equipment and vehicles during construction-Changing ecosystems and loss of terrestrial and aquatic habitatsOperation-Emission from port operation (vessels, harbor ships, cargo handling equipment and cargo trucks) and Emission from berths, building, port lighting and terrestrial/cargo vehicles.-Untreated emission to air, discharge to water, release to soil and marine sediments from industrial activities, noise generation, waste generation and disposal, loss and degradation or terrestrial and aquatic habitats.

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B. Environmental Issues for Port ProjectsSustainability and Climate Change

Mitigation-Construction, emission control using air pollution treatment methods, ship/truck idling reduction strategies and energy-efficient and less polluting, lower emission work equipment and vehicles, and eco-efficient building design and energy efficient lighting-Operation, Incentive for more fuel-efficient vessel and vehicles , cleaner fuel regulation, alternative green power, air emission reduction strategy, green port initiative project, and tree planting

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C. Social Issues for Port ProjectsIntroduction

- Social and Community Amenities- Cultural Heritage and Indigenous Peoples- Ecosystem Goods/Services- Public Health and Safety - Occupational Health and Safety

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C. Social Issues for Port ProjectsSocial & Community Amenities

Construction-Reducing usage of local community amenities-Reducing access to community amenities -Decreasing the number of tourists -Creating nuisance to scenic views of the harbor -Loss of recreational options for nearby residentsOperation-Noise, dust generation and exhaust emissions from vehicles in the port area, connecting road or supporting facilities -Concentration of pollutants causing health impacts-Less attractive visually depending on views cape

Mitigation-Construction, air pollution, noise, traffic calming measures and visual amenity-Operation, ensuring access to public amenities for the lifetime of port operation, tree planting along the access road and to block unpleasant views, and the view scape from existing amenities

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C. Social Issues for Port ProjectsCultural Heritage and Indigenous People

Construction-Disturbance of ethnographic and archaeologically heritage sites

Mitigation-Avoid the project activity near ethnographic and archaeologically heritage sites (King Tallo’s burial site)-Prohibited entry into King Tallo’s Burial site for unauthorized persons-Promptly report if any other heritage sites discovered in the vicinity of operations-Appropriate management and protective measures for heritage sites (King Tallo’s Burial site) including fencing, signage, salvage, and scientific studies-Implementation of a Heritage Management Plan

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C. Social Issues for Port ProjectsEcosystem Goods/Services

Construction-Disturbance of coastal ecosystem influencing health of marine and terrestrial environments.-Impacted marine organisms and marine habitats Operation -Ecosystem services impacted by unsustainable practices causing emissions from sea and land transportation, improper waste management, and/or leakage of chemical substances.

Mitigation-Waste from construction disposed properly -Restricted sea disposal-Identified and conserved important area for biodiversity

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C. Social Issues for Port ProjectsPublic Health and Safety

Construction-Increased public health risk caused by emission of particulates from vegetation clearing, earthworks and traffic movement and improper wastewater and waste management. -Increased respiratory health disease due to dust emissions during construction -Increased mosquito-borne disease (malaria and dengue fever) due to ponded area -Traffic hazards due to increased traffic and mobilization of equipment

Operation -Incorrect handling of cargo containing dangerous goods (flammable, explosive, toxic, pathogenic or corrosive materials)-Indirect risk such as consumption of contaminated fishes and plants associated with port activities such as spillage or leakage of oil and other chemical substance -Increase of respiratory health diseases to nearby community and sensitive receptor caused by traffic congestion, cargo handling and movement, and ships emissions.

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C. Social Issues for Port ProjectsPublic Health and Safety

Mitigation-Construction: Reducing dust emissions, mosquito control measures implementation, proper solid waste management, training and awareness program to employers and contractors before the project commence and periodically during construction works, educating project personnel and contractors regarding the importance of public health and safety, providing public health facility for community and employee, preventing the contagious disease through employees.-Operation: Dust control and air quality monitoring SOPs, periodic health risk assessments taken to identify the level of impact during port operations, implementation and monitoring of hazardous cargo operational procedures, and developing a proper health safety and emergency plan to every possible impact in cooperated to every day port operations activity

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C. Social Issues for Port ProjectsOccupational Health and Safety

Construction-Potential for vehicle collisions -Machine-related injuries or accident.-Hearing loss due to hazardous levels of noise and vibration in working environment-General health damaging to the liver, kidney, reproduction, nervous system, respiratory disturbances and cancer came from spills or leaks of solvent (chemical hazards)-Working in high temperature environment for a long period, working with electricity, and worked accident such as falls from height

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C. Social Issues for Port ProjectsOccupational Health and Safety

Operation -Noise-related disturbance (from engine and transportation equipment) affecting workers within vicinity of the sources.-Fatigue affecting workers health safety and overall working performance-Workers’ health and safety exposure to dangerous goods and hazardous substances through transport and cargo handlingMitigation-Preserving worker’s health and working capacity -Improving the working environment-HSE Plan

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D. Land Acquisition Issues in Public InterestOverview

• General Issue from other experiences• Potential issue for port project• Mitigation

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D. Land Acquisition Issues in Public InterestGeneral Issue from other experiences• Socio – economic issues• Environmental issues• Vulnerable People• Evidence of land ownership• Land ownership and Squatters and illegal settlement• Asset loss price• Time of implementation / delay• Negotiations• Broker and Provocateur• Objection from community and Project Affected Peoples

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D. Land Acquisition Issues in Public InterestPotential issue for port project

• Commercial area• Relocation of Public facilities• Loss of land• Loss of settlement• Loss of livelihood/income• Public Road / access• Utilize marine resources and existing conditions of PT

Industri Kapal Indonesia (IKI)• Expectation of people who live around the port

construction

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D. Land Acquisition Issues in Public InterestMitigation

• Conduct Socio economic census as baseline for LARAP document development

• Measuring settlement property right status• Livelihood • Community Income • Family members• Area• Plantation or Livestock• Public facility or cultural heritage facility• Community positive or negative perception of the proposed

project impact• Develop recommendation based on the baseline in the LARAP

document