Environment, Social & Gender

Safeguards

February 3, 2015

TIER 3 - Proponents

EIA, Planning, ESMP,

Project Implementation, M&E,

Reporting and Project Closure.

TIER 2

GPP

TIER 1

MCA-Indonesia

Environmental and Social Management

System (ESMS)POLICY

Government of Indonesia Rules and Regulation

Millennium Challenge COMPACT : GOI and US Govt.

MCC Environmental and Social guidelines and Gender PolicyIFC Performance Standards

Community-based

Health and Nutrition to

Reduce Stunting Project

Green

Prosperity

Project

Procurement

Modernization

Project

Green Prosperity

Investment

Compact Level

IFC Performance Standard (IFC-PS)

(Annex 27)

• PS 1: Assessment and Management of Environmental

and Social Risks and Impacts

• PS 2 : Labor and Working Conditions

• PS 3 : Resource Efficiency and Pollution Prevention

• PS 4 : Community Health, Safety, and Security

• PS 5 : Land Acquisition and Involuntary Resettlement

• PS 6 : Biodiversity Conservation and Sustainable

Management of Living Natural Resources

• PS 7 : Indigenous Peoples

• PS 8 : Cultural Heritage

3

Environmental and Social Performance

• ESMS and IFC Performance Standards (Annex 27) as

presented in ANDAL/UKL-UPL or SPPL documents, or

other relevant environmental and social studies must

meet IFC Performance Standards.

• Annex 11 - Environmental and Social Performance Data

Sheet

Social and Gender Integration

• Annex 10 – Social and Gender Inclusion Plan

• Annex 26 – Social and Gender Integration Guidance

• Basic criteria to be included in the Application

Participation

Access and Opportunity

Benefit Sharing to Achieve Affordability

Budget

• Expanded Social Gender and Landscape Study, to be

included in initial funded activities

Monitoring

Annex 12 – Monitoring & Evaluation Plan

Indicative data required

Outcome Estimated diesel

generators and coal power

plants use displaced

Estimated diesel generator

and coal power use displaced

as a result of the Project

MWh

Output Electricity connections

energized (if applicable)

Total number of connections

(household and business)

installed and energized by the

Project

Number

Output Additional capacity of

renewable energy added

The amount of additional

capacity of renewable energy

that is installed (i.e.

constructed) or enabled (i.e.

operationalized) by the Project

Mega

watts

Economic Analysis

• Annex 17 – Data Sheet for Economic Analysis

• MCA-Indonesia requires that the Economic Rate of Return on all proposed projects in this CfP is 10% or greater.

• MCA-Indonesia will undertake the calculations based on the proposed project logic and data.

• Applicants are not expected to do so.

Disclaimer

All figures, numbers and dates stated in our presentation are tentative, subject to change, based on our best efforts and subject to

the timely action by the pertinent local government.

Any requirement stated in our presentation may change from time to time as determined by MCA-Indonesia and/or MCC and is

subject to the applicable laws and regulations of the Republic of Indonesia.

…thank you…

Environmental and Social Management System

(Annex 27)

• MCA-Indonesia ESMS Framework Policy Statement– Maximize environmental and social benefits for the people of Indonesia

(including women and marginalized groups), – Minimize the adverse impacts to the environment and society.

• All MCA-Indonesia investments and operations shall comply with environmental and social safeguards: – Laws and regulations of the Government of Indonesia– MCC Environmental Guidelines– MCC Gender Policy– IFC Performance Standards on Environmental and Social Sustainability.

• Specific guidelines for GP include:– MCA-Indonesia ESMS Framework– MCA-Indonesia GP Project ESMS– MCA-Indonesia SGIP and the GP SGIP– Others guidelines: SEP & Public Consultation and Disclosure Policy,

GMP/GRM, Landscape/Lifescape-based Methodology, etc.

9

GP Project

ESMS Screening

Flow and

Instruments for

GP Commercial

RE Projects

Screening Flow ESMS Instruments/tools

• Screen for ESMS instruments/tools

(EIAs/ESMP new/upgrading, LARAP,

IPP, etc.) use screening checklist/ESDS

• Boundaries and Scope for

environmental & social impacts

• Prepare ESMP (AMDAL or UKL/UPL or

SPPL) report

• Consultation and disclosure (PCDP)

• ESMP process: Resourcing &Budgeting

• Environmental permit process

• MCA Indonesia approval process

• ESMP implementation

• Monitoring

• Supervision/Oversight

• Evaluation & Review

Proposed Project

Screening and

Scoping

Prepare

ESMP docs

ESMP Appraisal

and

Environmental

Permit

Project

Implementatio

n

Social and Gender Gap in RE

Projects

• Lack of women’s and vulnarable

group access, participation, and

benefit from te projects

• Challanges and impact of RE

infrastructure on employment,

workloads, and the division of

labor

• Unaffordability of the poor,

female headed houshold, and

vulnerable group

• Short and long term risks for

women and young people

Social and Gender Integration(Annex 26)

• Participation

• Access and Opportunity

• Benefit Sharing to Achieve Affordability

• Suggestions on merit-worthy local community development agencies

• Suggestions on indicators that could be used in Applications to promote social and gender inclusiveness: Participation, Access and Opportunities, Benefit Sharing, User Knowledge, Decision Making, Capacity Building, Trafficking in Person (TIP), etc

“Landscape/Lifescape-based Analysis

(L/L)”

Project planning process, investment, Infrastructure and services

Project Biophysical, Human and Social Environment

“Physic”: Project EIA and conventional safeguard obligations only, still riskingelite capture, social exclusion and jealousy, insufficient sources of natural capital and spill-over negative externalities, reducing livelihood potential and increasing poverty

L/L: Project sustained by the surrounding natural, human and societal resources, inclusive of the poor, women and other marginalized groups; widely-increased livelihood/ income opportunities, poverty reduction and growth; effectively safeguarded against spill-over negative externalities.

THE KEY ROLE OF ECON

To determine if the eligible

proposals meet the economic

rate of return criterion (i.e., ERR

≥ 10%).

ERR=Incremental Benefits

Tren income

With GP Project

2035

20

2015

Project DurationData Base

Household Income

(IDR)

year

40

60

80

100

120

2009

ERR

Without GP Project

With GP Project• Investment increase household

income broadly (include poor people)• Reduce emission • Protect natural asset s

2017

Intervention phase

Without GP Project • Investment increase household

income partially• Increase emission • Reduce natural assets

What Concerns Economics?• Efficient Allocation of Resources• Increase Output, Minimize Cost• Incremental Benefits• Economic Values

GENERAL FUNDING PROCESS & ROLE OF

ECON TEAM

Call for Proposals

(CfP)

Eligibility of Proposals Determined by TAP

Funding Decision

1

2

3

Proposal Stage for Window 3.b only

- Econ Team Begin the construction of Preliminary economic model

- TAP identify sensitive assumption and data, and possible to discuss the preliminary model

- Run Economic Analysis- Submission of “the Proposal

Econ Team Review”

Annex 17

M&E: Role and Function

the basic questions of aid effectiveness

• Do the expected results of this program justify the allocation of scarce aid dollars?

• Has program implementation met predetermined benchmarks for progress?

• Has the investment achieved its goals?

• What can we learn from the experience to inform future programs and international best practice?

M&E provides information necessary to answer these questions

M&E: Cycle

M&E: Reference and Guideline

• Economic and Beneficiary Analysis

• Common Indicators

• M&E Plan

• Modifications to Compact Programs

• Quarterly MCA Disbursement Request and Reporting

Package (QDRP), including ITT

• Procurement Guidelines

• Activity Review Guidance

• Guidelines for the Program Closure

• ESMS Guideline

• Gender Integration Guidelines

M&E: Logframe and Indicators

Process• Proposals that receive project

preparation support (#)

• Individual loan or grant finance facility

agreements approved by the GP Finance

Facility (#)

• GP Finance Facility agreements targeting

women and vulnerable groups (#)

• Number of proposals submitted to the GP

Investment Committee that promote

economically productive activity for

women or other vulnerable groups (#)

• Mechanism established to continue

execution and oversight of financial

agreements approved by the GP Finance

Facility (date)

• Financial service provider partnerships

established (date)

Outcome and Output• Project funds disbursed by the TA and

Oversight Activity. (%)-Outcome

• Additional capacity of renewable energy installed (MW)-Outcome

• GP-funded renewable energy systems installed (#)-Outcome

• Additional capacity of renewable energy planned (MW)-Outcome

• Power purchase or other power production agreements (#)-Outcome

• Project financing approved by the GP Finance Facility (USD)-Output

• Value of Projects Supported by the GP Finance Facility Amount of funds leveraged (USD)-Output

• Project financing disbursed by the GP Finance Facility (%)-Output