Makassar Tallo River Area Development Pre-Feasibility Final Report A4

Makassar Tallo River Area Development Pre-feasibility Study

Final Report Document Version 3

August 2013

Final Report

Makassar Tallo River Area Development Pre-feasibility Study Document Version 3

Document Quality Information

General information

Author(s) Owen

Project name Makassar Tallo River Area Development Pre-feasibility Study

Document name Final Report

Date August 2013

Reference

Addressee(s)

Sent to:

Name Organisation Sent on (date):

Santo Dewatmoko World Bank Jakarta 23 August 2013

Copy to:

Name Organisation Sent on (date):

Arnault Thery Egis Jakarta 23 August

Participants of final workshops in Makassar and Jakarta

26 August

History of modifications

Version Date Written by Description of Changes

1 19 August Owen Draft for internal discussion

2 21 August Owen Second Draft for internal discussion

3 23 August Owen Final for presentation in Makassar and Jakarta

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Makassar Tallo River Area Development Pre-feasibility Study Page i Document Version 3

Table of Contents

Table of Contents............................................................................................................i

Currency Equivalents ..................................................................................................... ii

Abbreviations and Acronyms ......................................................................................... ii

1 - STRATEGIC CONTEXT .......................................................................................... 1 1.1. Overview ........................................................................................................................... 1 1.2. Country Context ................................................................................................................ 1 1.3. City Context ....................................................................................................................... 2 1.4. Introduction to this Report ................................................................................................. 5

2 - PROJECT DESCRIPTION ...................................................................................... 7 2.1. Declaring a project area .................................................................................................... 7 2.2. Development Strategy ....................................................................................................... 8 2.3. Description of the existing situation ................................................................................. 11 2.4. Defining project components ........................................................................................... 14 2.5. Project Components and the role of World Bank in each ................................................ 15 2.6. Estimation of World Bank Project Costs .......................................................................... 35 2.7. Alternatives Considered for World Bank Loan support and Reasons for Rejection ......... 35

3 - IMPLEMENTATION ARRANGEMENTS ............................................................... 39 3.1. Overview and timing of arrangements ............................................................................. 39 3.2. Urban development arrangements .................................................................................. 40 3.3. Kecamatan and Kelurahan management improvements ................................................. 41 3.4. Civil Society arrangements .............................................................................................. 43 3.5. Land management arrangements ................................................................................... 44 3.6. Implementation Arrangements for the Word Bank Project .............................................. 47 3.7. Sustainability ................................................................................................................... 51

4 - PRE-FEASIBILITY ASSESSMENT ....................................................................... 52 4.1. Scope .............................................................................................................................. 52 4.2. Economic Assessment .................................................................................................... 53 4.3. Environment Impact Assessment .................................................................................... 57 4.4. Social Impact Assessment .............................................................................................. 59 4.5. Summary of Key Risks .................................................................................................... 61

Table of Contents of Annexes .................................................................................... 65

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Currency Equivalents

(Exchange Rate Effective July, 2013)

Currency Unit = Indonesian Rupiah

IDR 1,000 = US$0.1

US$1 = IDR 10,000

FISCAL YEAR

January 1 December 31

Abbreviations and Acronyms

ADB Asean Development Bank

Amdal Analisa mengenai Dampak Lingkungan, environmental impact assessment

ANDAL Analisa Dampak Lingkungan

APBD Anggaran Penerimaan dan Belanja Daerah, regional government budget

APBN Anggaran Penerimaan dan Belanja Negara, national government budget

Bapedal Badan Pengendalian Dampak Lingkungan

Bapedalda Badan Pengendalian Dampak Lingkungan Daerah

Bappeda Badan Perencanaan Pembangunan Daerah, regional agency for development planning

Bappenas Badan Perencanaan Pembangunan Nasional, national planning agency

BBWS Balai Besar Wilayah Sungai, provincial office of the national public works department for river management

BKM Badan Keswadayaan Masyarakat (peoples self-help agency)

BKSPM Badan Kerjasama Pembangunan Metropolitan

BOD Biological Oksigen Demand

BPK Badan Pemeriksa Keuangan

BPKP Badan Pengawasan Keuangan dan Pembangunan, agency for oversight of finance and development

BPS Badan Pusat Statistik

BUMD Badan Usaha Milik Daerah

Cm Centimetre

CPS (World Bank) Country Program Strategy

CSIRO Commonwealth Science and industrial Research Organization

DED Detail Engineering Desain

DPRD Dewan Perwakilan Rakyat Daerah, local government council

EIA Environmental Impact assessment

ESMF Earth System Modelling Framework

FGD Focus Group Discussion

GOI Government Of Indonesia

Ha Hectare

Ha Hectare

IDR Indonesian Rupiah

IDR Indonesian Rupiah

IPAL Instalasi Pengelolaan Air Limbah, Sewage treatment plant

JICA Japanese International Cooperation Agency

Jl Jalan or street

Kecamatan Sub-district of city or regency, or the name of the regional government office serving the sub-district

Kelurahan Division of kecamatan, or the name of the kecamatan office in the division

Km2 Square kilometre

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KSPPN Kebijakan dan Strategi Pembangunan Perkotaan Nasional, national strategy and policy for urban development

LARAP Land Acquisition and Resettlement Plan

LHLC Lembaga Hijau Lestari Celebes (Celebes institute for green sustainability)

LPM Lembaga Pemberdayaan Masyarakat (peoples empowerment institute)

LPPM Lembaga Penelitian dan Pengabdian Masyarakat

M3 Meter Kubik

Mamminasata Name given to the grater Makassar metropolitan area covering the city of Makassar and the regencies of Gowa, Maros and Takalar

MoF Ministry of Finance

MoHA Ministry of Home Affairs

MTEF Medium Term Expenditure Framework

MUSRENBANG Musyawarah Perencanaan Pembangunan

NGO Non-Government Organisation

NUDP National Urban Development Program

OP/BP Operational Policies/Bank Procedures

PMU Project Management Unit

PNPM Program Nasional Pemberdayaan Masyarakat funded with World Bank support prior to 2006

PNPM Mandiri Independent PNPM budgeted through national budget since 2006

ppHa People per Hectare

PPP Public- Private Partnership

RDTR Rencana Detail Tata Ruang, detailed spatial plan

READ Rural Empowerment and Agricultural Development program

REI Real Estate Indonesia

RKL-RPL Rencana Pengelolaan Lingkungan Rencana Pemantauan Lingkungan, plan for environmental management and monitoring

RT Rukun Tetangga

RTRW Rencana Tata Ruang Wilayah, regional spatial plan

RW Rukun Warga

SNI Standar Nasional Indonesia

SNVT PJN Satuan kerja Non Vertikal Pelaksanaan Jalan Nasional Metro Makassar (noon-vertical work unit for national roads)

SPAN Sistem Perbendaharaan dab Anggaran Negara

TA Technical Assistance

TKPPN Tim Kordinasi Pembangunan Perkotaan Nasional, national team for coordinating urban development

TKPPN Tim Kordinasi Pembangunan Perkotaan Nasional, national team for coordinating urban development

TOR Term Of Reference

UIM Universitas Islam Makassar

Ujung Pandang Name of Makassar during New Order period

UMI Universitas Muslim Indonesia

Unhas Universitas Hasanuddin, the main state university in Makassar

UPTD Unit Pengelola Teknis Dinas

VAT Value Added Tax

WALHI Wahana Lingkungan Hidup

WB World Bank

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1 - STRATEGIC CONTEXT

1.1. Overview

This prefeasibility study examines a proposal by Makassar City to develop the Tallo River Area. The Tallo River Area is the basis of the ancient Tallo Kingdom, the original centre of government in Sulawesi, with its free-trade port that attracted trade from China to Arabia.

The peninsula to the south of the river mouth is proposed to be developed as Heritage City, behind which the river is to be retained in a natural state as a city park and green space of 9.3 km2. In the middle is Lakkang Island which will be retained as a rural community.

This park will be surrounded by a levee with a main road thoroughfare with high density mixed-use development along it facing the park. Behind this, a large area will become flood-free for development of industry, warehousing, education and housing in accordance with the city plan (RTRW). In the long run the Tallo River Area will provide place of work, housing and recreation for over 300,000 people, mostly lower-income. If the government accepts densities in Makassar similar to modern dense cities of Asia, this figure could be more than doubled.

Makassar City has asked the World Bank to help it develop the concept ready for feasibility study, in anticipation that the Bank may finance the initial work which will stimulate government, private and community to invest in the remainder of the development, according to the spatial plan and evolving national urban development policy that call for new standards of urban design, compact city densities; roads designed primarily for pedestrians and public transport.

The city proposes river transport; highest density at intermodal points; government guided community-based informal housing densification avoiding slumming; and new capabilities of the city and the community to govern the process.

1.2. Country Context

Urbanisation and sprawl. Indonesia is one of the fastest urbanizing countries in Asia and its future will be shaped by its cities. In 2011 the population was 51% urban, and the projected to become 85% by 2050.

1 The World Banks Indonesia Economic Quarterly of

March 2013 noted that sprawl is preventing the improvement of urban productivity; Indonesia is not designing its cities to promote growth.

2 The main cause of lack of

productivity gains is the inefficient delivery of services to dense areas, the dependence on private transport and energy use. A major concern of sprawl is the loss of valuable agricultural land.

1 Ir Hayu Parasati (2013). Program Pembangunan Perkotaan Nasional: penyiapan

implementasi Kebijakan dan Strategi Pembangunan Perkotaan Nasional (KSPPN). Presentation to TKPPN (national team for coordinating urban development) on 3 May 2013.

2 World Bank (2013). Indonesia Economic Quarterly; Pressures Mounting. March 2013.

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Decentralisation. Indonesias big bang decentralisation of 2001 was a major redesign of the state.

3 After twelve years, the advantages and disadvantages of the new design

are becoming clearer. While many large cities are now competently planning their futures and managing their affairs, the following are some of the weaknesses recognised both by World Bank and the national planning agency Bappenas:

Urban governance issues such as urban growth, major urban infrastructure, and social issues of the large metropolis have not been addressed in regional government regulation.

The funding formula for regional government does not include a variable for either population growth or need for urban infrastructure. Large fast-growing urban regions are at a major disadvantage. They become dependent on national ministry ear-marked funds, and as a result national ministries are continuing to fund affairs that are clearly of a local nature.

Government dysfunction. Both the centre and regions continue to be wracked by political self-interest, corruption and lack of competence. The government, the World Bank and the general public are keen to support reforms that bring competence, integrity and accountability to local government affairs.

Spatial planning. Three laws, introduced to improve land-management (Law 26/2007 on spatial planning, Law 41/2009 on sustainable protection of farmland, and Law 2/2012 on land acquisition for public use), are not yet having their intended impact.

New urban development policy. It is in the light of these concerns that the government is currently preparing a new national urban development policy and program, and the World Bank is planning to support this through innovative development programs in a number of metropolitan areas including Mamminasata.

1.3. City Context

1.3.1. Makassar is sprawling

Makassar is the largest city in Eastern Indonesia and the capital of the province of South Sulawesi. It is located on the south-western coast of the island of Sulawesi, facing Makassar Strait. Makassar is part of the Mamminasata metropolitan area (covering the city of Makassar and the regencies of Gowa, Maros and Takalar), which has a population of about 2.5 million which is expected to grow to around 2.9 million in 2020. Around 1.4 million people live within the City boundary. Over the last two decades, the population of the regencies has exceeded the growth of Makassar, though most of the new employment is within the city boundary.

Over 86% of the area of Makassar is used for urban uses, with an overall density of 77 ppHa. (Jakarta, which is not dense by international standards, has 146 ppHa of its built-up area.) Urbanised areas of surrounding regions of Gowa, Maros and Takalar have an even lower density of less than 20 ppHa, scattered over a wide area. The built-up area has expanded far faster than the population, indicating an increasingly lower density of the city. The loss of prime agricultural land would appear to be a major problem throughout Mamminasata,

4 and the sprawl is a major contributor to the lack of increase

in the productivity of the city. The city is becoming less serviceable as it sprawls.

3 Mark Turner and Owen Podger with Wayan K Tirthayasa and Maria Sumardjono (2003).

Decentralization in Indonesia: Redesigning the State. Canberra, Asia Pacific Press.

4 Figures are developed from paper by Wilmar Salim (2012). Trans-boundary urban

agglomerations governance in Indonesia: institutional coordination issues and opportunities.

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1.3.2. Makassar City has a hole where the ancient Makassar used to be

Yet close to the city centre, and immediately adjacent to the governors office, is a large area of undeveloped land, the large area of wetland on downstream Tallo River, seen clearly on the accompanying map that shows urban development in Mamminasata in red. This hole in the urban area covers much of the original Tallo kingdom, with its centre at the mouth of the river.

1.3.3. Tallo Heritage City and Downstream Tallo River as the new cultural centre and green backbone of Makassar

Thus the Downstream Tallo River Area has special significance for two reasons: it is the location of the ancient Tallo kingdom, and it is largely untouched by urban development.

Since regional autonomy in 2001, Makassar has proposed to develop this area as a cultural centre and green centre for the city. This is endorsed in the Mamminasata spatial plan (2006) which identifies the river as a special development area. The citys spatial plan (RTRW, still to be enacted) identifies three special development areas here, (i) the Tallo Heritage City focussing on Kelurahan Tallo, (ii) Tallo River integrated development area and (iii) Lakkang Island protected area.

1.3.4. Makassar strategy for coastal defence: reclamation

In the ancient Tallo kingdom, the city built defences along the coast, to protect against outside military threat, and a port for free trade on the river. These defences were not enough to protect it from flooding, and eventually the kingdom was moved to Goa. Makassar again recognises the threat from the sea as one of nature, climate change, storms and tsunamis. It is developing a series of reclamation areas that will create a defence for the city. The proposed Heritage City will be protected from the sea by a new international sea port and major residential development.

Makassar City has a hole where the ancient Makassar used to be

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1.3.5. Tallo River area development as the partner of the existing city

We represent this as a human metaphor in the accompanying figure. The current centre of the city government is seen as the head of a man with arms outstretched to protect itself from the sea, and a body extending to the commercial heart and legs extending to its residential areas. Beside him is his partner, representing the soul of the city, with her head in the Heritage City, her arms outstretched to protect from the sea, and her body in the new green area.

1.3.6. Dramatic impact on urban form

The combination of the reclamation and wet-land development adjacent to the proposed parkland will have a dramatic impact on the form of Mamminasata:

They provide space for a far more compact city in accordance with developing national policy. The reclamation area facing Tallo proposes housing for about 700,000 people, and the Tallo River Area Development foresees at least an additional 300,000 people. Thus an additional one million people will be able to live close to the centre of the city, dramatically reducing pressures of urban sprawl.

The outer ring road will encourage densification of development along its length, also reducing pressures for sprawl.

The first phase of the Tallo River Area Development creates an alternative access to the city from the north, for both private and public transport.

High density beside the river and in the reclamation areas will be sufficient to support a river transport system

The formal recognition of the river area as parkland and green space will guarantee compliance with green-space standards

Such impacts, together with the impending issue of new national urban development policy, warrant a review of current Mamminasata plans.

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1.3.7. Engaging partners in development

The city has been very responsive to the proposal to use a World Bank loan to leverage private investment to speed up development of the area. This report identifies partners in development as follows:

City Government, in accordance with its legal functions, as regulator and primary development agency

World Bank as provider of initial investment funds to act as a initiator and catalyst for the overall program

Central Government and Provincial Government, in accordance with their respective functions, as provider of facilities for the national and regional interest such as the outer ring road and flood mitigation efforts, and as pembina (capacity builder) to help the city build the capability to manage the development

Private Capital as the primary source of investment in the area, including partnership with the city government to procure land for the park and the mixed use zone along the riverside road.

Real Estate Sector as the primary builder of local infrastructure and high density developments

Community as the primary source of residential investment in the area (mostly low income), and as the main contributor to local area planning.

Academia both to support the scientific inputs to the program (anthropology, archaeology, ecology) and to develop a reorientation of several university campuses to face the park area.

1.4. Introduction to this Report

Following this introduction, Part 2 of this report describes the overall project of the Tallo River Area Development, and the specific recommendations for the World Bank role in it. It covers:

Declaration of the project area

Specification of the overall objectives, beneficiaries and performance indicators, as well as the intermediate outcomes from the proposed World Bank contribution

Defining project components

Description of the existing situation

Project components and the role of World Bank in each

Estimation of World Bank project costs

Alternatives Considered for World Bank Loan support and reasons for rejection

Part 3 of the report presents the implementation arrangements, for both the overall development and the initial World Bank project. Implementation arrangements cover:

the establishment of capacity to manage urban development within the project area, with private financing and the real estate sector, and emphasis on community investment in housing. Proposals for capability support from national government is also described.

Improvements to subdistrict governance, with proposed changes in kecamatan and kelurahan within the area.

Civil society arrangements, with special attention to the creation of the Heritage City, conservation of Lakkang Island, development of a river community, arrangements for informal housing development, and civil society oversight.

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Land management arrangements, including compulsory land acquisition, land consolidation, incorporation of World Bank Procedures, special considerations for housing on the river, and a note on cases with contested titles or rights.

Implementation arrangements for the World Bank Project.

Part 4 of the report is the pre-feasibility assessment, covering

an assessment of the scope of the project and relationship with other parties active in development in Makassar,

an economic assessment, providing a qualitative assessment of the overall project and a preliminary quantitative assessment of the initiating project proposed for World Bank funding, a commentary on the citys capacity to borrow and a preliminary assessment of the feasibility of private financing of land consolidation for the riverside road, parkland and high density mixed use development,

a preliminary environmental assessment, including recommendations for the environmental impact assessment,

a social impact assessment, covering both the overall social impact of the development, and the impact on existing communities with reference to World Bank safeguards,

The fourth part concludes with a summary of key risks.

It is followed by a series of annexes that provide additional and supporting information.

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2 - PROJECT DESCRIPTION

2.1. Declaring a project area

This pre-feasibility study identifies the boundaries of the project area in a number of ways for different aspects of the study, as illustrated on the accompanying map:

Tallo Heritage City and Downstream Tallo Parkland consists of three strategic areas defined in the RTRW, (i) Tallo Heritage City covering Kelurahan Tallo, (ii) part of the Tallo River Integrated Development Area which covers the river and its immediate embankment, extending past the Tello Bridge to the eastern boundary of the city, and (iii) Lakkang Island conservation area.

The area available for development covering land adjacent to the Downstream Tallo Parkland that is currently undeveloped or partially developed, the hole in Makassar identified in the image on page 2. Most of this land is currently subject to regular flooding and will be made flood free by the proposed works, thus available for urban development. Its boundary is marked with a blue line in the accompanying map

A wider area, selected to make urban development more manageable by being defined by major roads but precluding public and defence facilities, to be declared by Kota Makassar as the Downstream Tallo River Urban Development Area (Kawasan Strategis Pembangunan Perkotaan Tallo Hilir). The city will make specific implementing arrangements to command development here.

Downstream Tallo River Urban Development Area

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2.2. Development Strategy

2.2.1. Project Development Objectives

The overall objective is to support the development of the Downstream Tallo River Urban Development Area in accordance with the new RTRW, which will lead to:

A city park of 9.3 km2, including Lakkang Island to be retained as a rural area with a traditional village and tourist activity for the population of Makassar and visitors

Land made free of flooding that can be used for the development of industry, warehousing, education and housing in accordance with the city plan that can create home and work for over 300,000 people and up to 700,000 people depending on the density of development agreed

Access to and around this land (by road and river), in such a way that will promote high density of both housing and work-place, and attract a large population that can living and work close to the park, making public transport by both road and river cost effective for both the public and transport companies. This effectively will create a second commercial district for the city facing the park, with the primary non-polluting industrial and warehousing zone for the city.

Improvements to the process of creating housing for lower income groups, including fishermen housing along the river, and locations for apartment and informal housing within walking distance of employment.

Increased capacity of the community to define their own destiny and participate in the economy and life of the city.

Increased capacity of the city government to manage the project, provide urban services and lead urban development within the area.

Minimised relocation of households

Utilisation of WB funding to achieve intermediate outcomes that create incentives for continuing and sustainable development of the remainder of the project

2.2.2. Project Beneficiaries and indicators

The following table indicates objectives and beneficiaries of the whole project, showing benefit indicators where appropriate, and indicators used in appraisal over the period of development of the area.

2.2.3. Phasing of development

The proposed development will take perhaps two decades or more to develop as it caters for the economic and population growth of the city.

5 It is proposed that the area be

developed in three stages, as shown on the following map. In Stage One, the outer ring road (built by Provincial government) and an alternative route into the city that includes part of the riverside road opens up a large area for development. In Stage Two, the northern part of the proposed riverside road creates access to most of the riverside park, and other roads open the rest of northern area for development. In Stage Three, the western link of the riverside road will be built, linking the park area to Tallo Heritage City and the new port.

5 Together with proposed reclamation areas, work and housing will be created for over 1

million people, representing around 15 years of the anticipated population growth of Mamminasata

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Objective Beneficiaries Benefit indicators

Riverside Park All citizens of Makassar and

visitors/tourists

Number of visitors to the park Tourist time in South Sulawesi spent at

park

Land made free of flooding

Those who will find work and home in a location close to the centre of Makassar

Number of jobs Number of residents

Access and high density development

Those able to locate businesses (industry, warehousing and commerce) in high density development

Number of businesses locating in the area

Those who will find work, home and business in a location close to the centre of Makassar

Number of jobs Number of residents Number of trips to and from and

through the area

Those able to walk to place of work or place of doing business

Numbers of residents walking to work and place of doing business

Nation through energy savings

Lower income housing support

Lower income families locating in the development area

Number of lower income families finding housing in area

Fishermen in improved housing and stronger communities

Improved housing and economy of communities living on river bank

Capacity of the community

Lakkang island residents

People of Lakkang Island have formed as strong association to promote cultural heritage

Improved economy of the people of Lakkang

Lakkang not affected by land-conversion outside the scope of the RTRW

Fishermen families

Fishermen families have formed a strong community association to promote their uniqueness

Improved economy of the fishermen families

Fishing villages protected from intervention to take away their unique form

Capacity of the city government

Poor income people able to have housing close to place of work

Public by receiving improved services

Local government employees

Land use changes and land speculation are controlled, land available for low income housing

Urban environment is clean and provided with appropriate levels of services such as schools and community facilities

Government improvement in financial management

Level of productivity and expertise of local government

Minimized relocation of households

Current community living in the area

(Negative indicator) number of households displaced by the development.

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2.2.4. Intermediate outcomes

It is proposed to utilise World Bank funding at the beginning of Phase One, to achieve intermediate outcomes that create incentives for continuing and sustainable development of the remainder of the project. The intermediate outcomes are described in the following table, showing the benefit indicators we have used in the economic appraisal presented in Part 4 of this report.

Objective Intermediate outcome Benefit indicator for economic

appraisal

Riverside Park

Park boundaries defined by perimeter road or cycle path and planting

Some park land developed

(none)

Land made free of flooding

Land owners of about 1,159 Ha benefit from having land made flood free.

Increase in land value of all land now freed from flooding

Access and high density development

Land owners on riverside park road (about 42 Ha) benefit from access to main road and dense development rights

Increase in land value along the new mixed use zone along the riverfront, due to improved access

Lower income housing support

Systems in place to assure sufficient land available for lower income families

(none)

75 fishermen families in

improved housing (none)

Capacity of the community

300 households on Lakkang Island

(none)

117 fishermen families (none)

Capacity of the city government

Public by receiving improved services

Local government employees (none)

Minimized relocation of households

Only 85 households displaced (cost of relocation)

Stage 1

Stage 2 Stage 2

Stage 3

Staging of development

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2.3. Description of the existing situation

A more complete description of the existing situation is found in Annex 1.

2.3.1. Physical and social situation

1. Infrastructure generally

There are only two main-road bridges crossing Tallo River, Tello Bridge on Jl Perintis Kemerdekaan to the east and the toll road bridge to the west, providing little alternative access in cases of emergency. Both bridges have capacity less than the roads that lead to them. The study impact area has little road access from east or west.

The state of the infrastructure is typical of most other cities of this size. There is little consideration for pedestrians. Garbage collection service is inadequate and garbage floats down the river from city drains. Poor drainage and inadequate maintenance programs lead to a high level of damaged roads. Sanitation is inadequate, resulting in putrid water coming from city drains into the river.

2. Kelurahan Tallo

Kelurahan Tallo is the location of the centre of the original kingdom of Tallo, based at a port that developed through a policy of free trade. When the Portuguese reached Sulawesi in 1511, they found Makassar a thriving cosmopolitan entre-port where Chinese, Arabs, Indians, Siamese, Javanese, and Malays came to trade their manufactured metal goods and fine textiles for pearls, gold, copper, camphor and spices from Maluku. By the 16th century, Tallo had built an alliance with Gowa to the south, and had a series of 11 fortresses and a fortified sea wall along the coast.

6 When Tallo was

affected by flooding, Gowa replaced Tallo, and later they moved the main port to the site of Port Rotterdam which was taken over by the Dutch in 1669.

There are few remains of the Tallo kingdom: the ruins of a few of the fortifications, now surrounded by slum housing, the reasonably-well preserved graveyard of kings, not only kings of Tallo, but from other regions which elected to have their kings buried here, and a mysterious building at a location known as Pelantikan (Inauguration) now in the middle of a community rubbish dump.

Access to Kelurahan Tallo is in a dismal state of disrepair, and the location where there used to be the entrance gate is now a temporary garbage disposal site (see photo). This is not an indication of dedication to develop the location as a major tourist attraction.

6 http://en.wikipedia.org/wiki/Makassar

Kings grave yard in Tallo

Garbage at entrance to Tallo

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DJ Cipta Karya directorate for residential development, working with the city and USD 4.6 million from ADB, is commencing a slum improvement program in the area, that will include improvements to the access road. DJ Cipta Karya is also recommencing a project started several years ago to build low cost apartments for fishermen, in a reclaimed area off the coast. While these two initiatives address urgent needs, they have problems that also need to be addressed:

There has been inadequate attention to heritage and the intention of the city to declare the area as a strategic development area for heritage. This implies that the Cipta Karya directorate for building and neighbourhood planning, which is responsible for revitalisation of heritage sites, also should be involved in guiding the preparation of plans with local communities.

The site of the apartments, intended to provide access to the sea for fishermen, is not consistent with the RTRW, which indicates that the entire sea front is to be reclaimed as part of the future port.

On the river side of Kelurahan Tallo, the DJ Cipta Karya plan intends to remove stilt housing on the river, where less than two years ago Cipta Karya and the province funded the building of access paths and sanitation improvements. This would indicate at least an need for greater involvement of the community in the detailed planning of the proposals.

3. Tallo River

Most of the length of Tallo River in the project area appears in natural condition, with most of the river flanked by mangrove and nipah palm. In fact humans have planted the trees along embankments built for fish and prawn ponds. Most of the river is shallow, and will require dredging to increase its capacity to handle flooding. There has been a significant loss of fish population in recent decades, and most fishing is now in the open sea.

4. Pulau Lakkang

A narrow bifurcation of the river linking to Pampang River creates Lakkang Island. The plan for retaining Pulau Lakkang as a conservation area is well-supported by the people. There are about 300 households living here. There is a school and a mosque. Land is used for ponds, rice-fields, and a small amount of plantation. There are no cars. Passengers, goods and motor cycles use small ferries to cross to the mainland.

5. South Bank

In the area north of Jalan Panakkukang, urban expansion is now moving into swamp-land and ponds. Most of this development is comprised of relatively

The south fork that creates Lakkang Island

Lurahs office on Lakkang Island

Riverbank house of well-to-do family

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small lots for housing, with narrow road access from Jl Panakkukang. Although they have access to water and power, there is little appearance of planning or development control.

Most of the area from Kali Panakkukang to the toll-road bridge is already developed, with housing along the river bank. Most of this riverbank housing is traditional in form, owned by fishermen families and some, unfortunately, for garbage recycling.

6. Unhas area

The area between the river and the Unhas campus is allocated for farm and forest research. To the south of the campus, farmland and ponds are increasingly being developed for housing.

7. North bank

The area to the north of the river covers almost 15 km2, mostly low-lying land that is subject to frequent local flooding and sometimes from the Tallo River. This land is used mainly for ponds and increasingly being converted to low-density warehousing and medium density housing.

2.3.2. Institutional situation

Local government. The Makassar City Government is typical of other large city governments in Indonesia. It is the capital of South Sulawesi, and the focus of the con-urbanisation known as Mamminasata. The mayor has given responsibility for leading the preparations for the Tallo River Area Development to the head of the infrastructure and spatial planning section of the planning agency (Bappeda) who coordinates the involvement of each operational unit and subdistrict offices, with the engagement of the assistant secretaries for development and governance.

Subdistricts. The study area comes within four kecamatan (sub-districts). Panakkukang to the south also covers the southern half of Lakkang Island, Tamalanrea covers the river basin to the east and north of Tallo River. Tallo covers the north half of Lakkang Island, the village of Tallo, and a narrow strip of land between the Reformasi toll-road and the river. A small part of Biringkanaya drains into the river through Tamalanrea. Kecamatan and kelurahan offices are organised in accordance with national one-size-fits-all regulations, but serve functions according to the unique conditions of their area of jurisdiction.

Local political situation. The current mayor completes is second term in office shortly, with elections for his replacement in September 2013. It is not possible to determine which potential candidate is the most likely to win. Some of the issues of spatial planning and development have been debated on party lines, but as these issues in the spatial plan have been settled, the next mayor is most likely to support the plan and the proposed development of the Tallo River Area. Policy of the new mayor on financial management, such as private-public partnerships and borrowing, and development priorities, will remain unknown until approximately November when he announces his medium term development policies.

Existing Kecamatan and Kelurahan boundaries

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Public-private partnerships. The city government has experience with public private partnerships in developing its water front at Losari, and is currently negotiating deals with investors for reclamation areas and for an extensive monorail system.

Civil society. Civil society is relatively active. A number of national NGOs in governance have a strong presence in Makassar, including Walhi for the environment. The media plays a very strong role in reporting and critiquing government action. There are several universities in Makassar, with the national university Unhas being recognised as one of the best in the country. It is located adjacent to Tallo River.

Public accountability institutions are also strong in Makassar, including the supreme audit office (BPK), government oversight office (BPKP), Ombudsman, and Information Commission.

2.4. Defining project components

Section 2.5 that follows describes a series of components of the project. The first five components are directly related to an objective of the project, and the remaining four components related to the management of the project and the accountability of those responsible for implementing it. The following table summarises the public infrastructure for each component for the whole project, for Phase One and for the World Bank project proposed to instigate the overall project.

Component World Bank

Project Other Phase

One activities Later phases Justification

1

Investment to Make Tallo River System Flood Free (Objective 1)

Building levee, flood gates and stabilisation ponds

Local drainage as area develops

Creates large flood free area for urban uses close to city centre

2

Investment to Create Access with Higher Density

Riverside road stage 1, selected river transport piers

Outer ring road, northern link of alternative city access, ferry services, busway service

Completion of ring roads and feeder roads to attract medium and high density development, road link to new port, monorail service.

Access creates the demand for the land made flood free for private sector investment of high density that creates greater efficiency of the city in accordance with national urban development objectives

3

Investment to Create a Heritage City and City Park

Selected parts of the riverside park, landscaping along road

Commencement of heritage city and river-based tourism

Cultural Centre, monorail stop, and new high density housing in Heritage City, complete development or riverside park with hotels and recreation facilities adjacent

Restores a lost cultural identity in Makassar, and provides much needed usable open space

4

Investment to Provide Improved Housing

Slum improvements, public housing,

revitalisation and neighbourhood infrastructure.

(To be determined through planning system)

Low income families able to locate housing close to work, in areas that will avoid slumming.

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Component World Bank

Project Other Phase

One activities Later phases Justification

5

Government Capability Development Program

TA

Improved public project and financial management

Makassar City builds capability to manage innovative program, with emphasis on partnership with business and community

Community Capability Development Program

TA

Communities participate in self-government and environmental planning processes

ditto The project helps to build greater community self-reliance

6 Program management

Project management support, engineering design and supervision

Development of partnerships with private sector

Ditto

Government cannot afford the full investment, and incentives exist to attract private sector participation

7

Environmental and Social Assessments and Management

Management of World Bank Safeguards

Adoption of World Bank standards for the whole program

Ditto

World Bank safeguards are designed in the interest of the community for whom the project is intended.

8 Monitoring and Evaluation

World Bank M&E system

M&E system involving institutions that assure accountability

Ditto

Those responsible for the work are held accountable to those who provide funds and to the people.

9 Preparatory efforts

All parties are ready to work together as expeditiously as possible

2.5. Project Components and the role of World Bank in each

2.5.1. Component 1: Investment to Make Tallo River System Flood Free

1. Sub-components

The following table shows the subcomponents of Component 1 indicating proposed responsibilities. They are illustrated in the accompanying map.

2. Description

A levee is built along the boundary of the riverside park, on both sides of the river between the toll road bridge and the Jalan Perintis Kemerdekaan Bridge (Tello Bridge). Some parts of this levee will be combined with the road included under component 2 below. The levee height will determined by a detailed study being prepared by BBWS. For the purposes of this pre-feasibility study, the height has been taken as the water surface profile for fifty year return period discharge, Q50, calculated by PT Virama Karya for the detail design for flood control for Makassar City and its surroundings in 2004, with 0.60 m freeboard above the water surface.

No additional provision has been provided for climate change:

BBWS considers its plans for retaining flood water upstream will significantly reduce the Q50 flood line in the PT Virama Karya study

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Sub-component Location Function Responsible

agency Timing and

funding

Levee

North of Tallo River and to the south of Tallo River, Pampang Kecil River and Pampang River

Prevents flooding of area behind levee

BBWS

Stage 1 with World Bank funding for construction and national funding for land where riverside road on the levee is to be built in later stages

Tamalanrea Indah Prevents flooding of area behind levee

BBWS 2014 APBN

Docks Rappokalling village and timber mill at Parangloe

Allows community and business access to river

BBWS Stage 1 World Bank funding

Flood gates with pump-housing

At tributaries

Disposes water into river at times of flooding, enables river flushing

BBWS Stage 1 with World Bank funding

Water quality stabilisation ponds

At larger tributaries

Lower BOD levels before water enters Tallo River

BBWS Stage 1 with World Bank Funding

Connecting canals Linking the three tributaries in area north of the river

Allows flushing of canals and rivers

BBWS and city

With associated road works (including outer ring road for 2014)

Tamalanrea Indah

Acts as retention pond and link between Tamalanrea and Unhas drainage systems

BBWS and city

With BBWS levee

Tello Baru-Panaikang

Diverts drainage to Pampang River

BBWS and city

Stage 1 with WB funding

Dredging At river mouth

Increases river flow, provides material for reclamation

With future reclamation

Potentially along the length of the river

BBWS and developers

With Stage 2 development and private funding

Dredging proposed for a later stage will reduce flood levels

An estuary barrage can reduce the river level by around 50 cm

The height of the levee can be increased at a later stage, through re-landscaping of the riverside parkland.

It is proposed that the land for this levee be freed by Balai Besar Wilayah Sungai (BBSW, the national river management agency). For a short portion of this levee on the northern bank of the river for about 1 km from Tello Bridge, the levee will be built by BBWS with national budget funding (ABPN). Elsewhere it is proposed that construction be funding 100% from a loan from the World Bank.

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At Rappokalling, the levee will be built at the front of fishermen housing, creating a dock for their boats. The design will need to be developed with community input. A special design will be required to the front of a timber factory to the north of the river at Parangloe that collects timber from the river. This will need to be agreed with the factory operators. At Pampang, the levee is diverted from the riverbank at the location of a proposed sewerage plant.

Several flood-gates with pump houses are to be constructed on the tributaries and outlet to the river to prevent river flood waters entering the land behind the levee. The four large ones, which are combined with stabilization ponds to reduce pollution levels of water flowing into the river, will be provided at the tributaries of the river (Pampang, Parangloe, Kapassa and Biringromang rivers), while the two small ones will be installed at the outlet of UNHAS lake and the outlet of Tamalanrea Indah drainage system to the river. The flood gate designs are based on the fifty year return period design discharge, Q50, of the tributaries, which, from the results of calculation by PT Virama Karya in 2004, (286.8 m3/s for Pampang river, 85.1 m3/s for Parangloe river, 28.1 m3/s for Kapassa river, and 125.1 m3/s for Biringromang river). Water quality stabilization ponds reduce the pollution levels (mainly BOD and sediment concentrations) in the drainage water before entering the river.

The three tributaries to the north of the river (Parangloe, Kapassa and Biringromang rivers), will be connected by canals within the road allocation for the citys Outer Ring Road, and along other roads. The design of the flood gates on these three tributaries will allow for flushing from one tributary to the other using tidal flows and/or pumping supply from the pump house which will be designed for reversible pumping action.

Dredging is proposed for stage 2. According to BBWS, dredging is not urgently required as retention ponds upstream will reduce flood flows. The planned study of the river by BBWS will provide recommendations for dredging. The proposed EIA will determine the

Flood mitigation works (Component 1)

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suitability of the sediment material for filling behind the levee for future urban development.

3. Potential future works

Potential future works include:

River short-cuts to shorten the distance for river transport and to speed up the flow of flood waters.

An estuary barrage that would make the whole park area behind it free from tidal influence and salination, and result in a drop of river-level of about 50 cm, accommodating anticipated sea-level rises by 2050. See section 2.7 Alternatives Considered for World Bank Loan support and Reasons for Rejection for further discussion.

Long term increase in height of levee to accommodate further sea-level rise. See drawing in Annex I that illustrates future increase in levee height.

2.5.2. Component 2: Investment to Create Access with Higher Density

1. Subcomponents and phasing


Creating access to development area (component 2)

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Sub-component

Location Function Responsible

agency Timing and funding

Outer Ring Road`

Linking Jl Perintis Kemerdekaan to the toll road through the north of the river

Providing access from the south of the city and opening up a vast area of land north of the river to warehousing and industry

Provincial government

Anticipated start in 2014

Riverside road stage 1

Linking outer ring road to Panakkukang adjacent to governors office, mostly on the levee

Creating access to west and south of the riverside park and high density development strip, main component of alternative route into city from north

City Stage 1, with World Bank funding

Part, alternative access to city

North of outer ring road

With riverside road creates access into city and to new development area

City Recommended for development in parallel to WB project

High density development

Along riverside road stage 1

Real estate development for mixed use at density to promote public transport

Real estate On completion of road, private sector funding

Block Development

North and south of outer ring road

Real estate development for industry and warehousing including local infrastructure

City partnership with real estate

After completion of outer ring road

River transport Along river with piers at strategic locations

Alternative public transport to city and future reclamation areas

City and private entrepreneurs

Starting on completion of riverside road stage 1, private investors

Transport interchanges

Adjacent to piers at bridges and Kera-Kera

Access between bus, ferry and later monorail

City and investor

World Bank (funding for piers), city and private sector investors


North side of river Access to park and high density development, link to toll road

City and private investment partners

After substantial development along stage 1 and block developments on outer ring road.


From Panaikang to toll road, Tallo Heritage City, and future port

Completion of riverside road, access to Tallo Heritage City

City

When economic feasibility of link can be proven, joint venture funding

Signature bridge

Upstream from toll-road bridge

Traffic access from toll to the development area, symbol of entry to park

City

When economic feasibility of link can be proven, joint venture funding

Cycle path Along levee

Providing temporary access for cycles until riverside road is completed

City World Bank funding

2. Description

Two main roads are proposed as the mainframe of this component which makes the whole area accessible for development. The first is part of Mamminasata plans, the outer ring road. It cuts across the middle of the large area to the north of Tallo River, from Jl Perintis Kemerdekaan to the toll road. This part of the ring road is planned for construction in 2014 by the provincial public works agency. The function of this road is

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primarily to serve industrial and warehousing areas. Later it will extend to the east and south, linking to the southern part of Mamminasata, and will extend west into the proposed industrial area west of the toll road and to a proposed large reclamation area.

The second main road is the Riverside Road, to be located along the flood control levee. When completed, it will link with the industrial zone to the north-west of Tallo River, cross the toll-road close to the toll road bride, then wrap around the proposed parkland returning to cross the toll road to the south of the bridge, linking to Tallo Heritage City and finally to the now port facility in reclaimed land to the west of Tallo. A second river crossing will link the two ends of the road upstream from the toll road bridge. This road will serve primarily as access to the park and to a ribbon of high density mixed use between park and the industrial-warehousing-residential areas behind it. It will be provided with four lanes for private vehicles, special bus lanes, wide footpath space and extensive planting of avenue trees. No on-street parking will be allowed, and access to the dense mixed use development will be from side streets provided by property developers.

The first stage of this road is proposed to be constructed with funding from the proposed World Bank loan. This part would start with a link to the outer ring road to the north east, running south past the Unhas campus, and crossing the river with a new bridge at Tello Baru, and extending to a link road on the western boundary of the Governors Office on Jalan Urip Sumohardjo. It is proposed that the land for this road be freed by a joint-venture with private developers, as described in the institusional arrangements below.

This first stage of the riverside road will form part of an alternative access to the city, from the bus terminal in the north to Panakkukang at the governors office. It is proposed that this becomes a main artery of the proposed Bus Way for Mamminasata. Please refer to comments in the assessment in section 4 on the design of the Bus Way.

Later stages of the riverside road will also be design to give priority to public road transport. Stage 2 along the northern bank of the river will be built after substantial development has begun along stage 1 and along the Outer Ring Road. Stage 3 which links to Tallo Heritage City and the future port will be built when sufficient demand makes in economically justified. Stage 2 and 3 include elevated roads in front of the timber factory at Parangloe to the north, and in front of the fishermens housing at Rappokalling, as indicated in the RTRW in order to minimise the impact on existing communities and economic activities.

The city will also develop river transport. We envision 18m catamarans designed to carry around 50 passengers, with low draft (70 cm) and low wake to minimalize abrasion of the shoreline. These would be provided by the private sector under licence to the city. Some of the piers are included in the proposal for World Bank funding. Three of these piers will be under river bridges, and one at the Unhas campus, at points to maximise demand by linking to other transport modes at nodes planned for high density developments. Two others will be on the island of Lakkang, to help promote tourism in the area. The piers would be designed for the passenger service and for improved landings for existing motor-cycle ferry services.

The city proposes two monorail routes, the first along Jl Perintis Kemerdekaan, and the second from the future port along the line of the Reformasi Toll Road. We envision an interchange at Tello Bridge that will link bus, ferry and the monorail. We propose modification of the route of the second monorail route, to create a similar interchange at the toll-road bridge, and a monorail stop at the heart of the Tallo Heritage City.

The detailed spatial plans yet to be prepared should provide incentives for private sector and community investment in medium to high density development that will support the public transport system proposed:

Mixed use development at a high density along the riverside road, maximising the potential of fronting onto a major recreation area. This would include high rise residential and commercial complexes at transportation nodes.

Warehousing and industrial development to the north of the river in accordance with the RTRW, with block development assigned to real estate developers, who

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will provide space for housing of low income workers, as described in section 2.5.4 below.

Further intensification of education areas, including a reorientation of the Unhas campus to face the river.

The plan provides for water-supply, electricity and telecommunications and drainage to be developed along the main road arteries by the appropriate state agencies.

Until Stage 2 and 3 of the riverside road are built, the levee will be provided with a 2m cycle road to provide access until the entire Riverside Road is completed.

3. Possible Future developments

The plan envisions future toll road improvements:

Additional bridge capacity at River Tallo

A major interchange at the link with the outer ring road (to be included with the provincial road component)

Widening of the access road on both sides of the toll road

Additional off-ramp as access to the riverside road on the North Bank

Improvement to ramp Tallo River South Bank

2.5.3. Component 3: Investment to Create a Heritage City and City Park



2. Heritage City

As so few items remain from the original kingdom, the proposed Heritage City will consist of cultural symbols more than restored relics. The main symbols proposed are the use of space, as indicated in the following illustration. The key components of the concept are:

Demarcation of the line of defence with a roadway and views to the west from each of the fortresses, and rehabilitation of the mangrove forest that hides the view of the port from the sea.

An avenue along the river front symbolizing the ancient port, with the boat-building facility retained, possibly with a finisi ship-building ramp added.

Ferry service symbolizing the trade routes up river and to the sea.

Provide a new gate to the Tallo Heritage City where the original gate was, as a point for reflection and demarking a starting point of an historical adventure

Creating a park area around the inauguration monument, with facilities for all future city inaugurations

Creating a park area where we assume the international trade was carried out, and at this point create a new local market place for local cultural products

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Sub-component


agency Timing and

funding

Heritage city Kelurahan Tallo Preservation of cultural heritage, development of a cultural centre

City, Cipta Karya

On-going with potential of significant private investment

First phase riverside parks

Kera-Kera in front of Unhas

A gathering point for academia with society

City Stage 1 World Bank

Tello Bau close to bridge and electricity transmission cable

Recreation area City Stage 1 World Bank

Panaikang reserve

Worker and family recreation area close to Governors office

City Stage 1 World Bank

Lakkang Island conservation

Lakkang Island Urban green space and conservation of traditional rural lifestyle

City and community

Mangrove planting

Locations along river to be determined

Protection and enhancement of bio-diversity

City

Cycle paths Along levee and length of parkland

Recreation, access for park maintenance

City

Remainder of river park

Recreation uses City Developed in stage 2 and 3.

Tallo Heritage City and City Park (component 3)

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Creating a park where ceremonies can be held, and a facility for weddings and festivals, with access to the river as many ceremonies have bathing rituals. Also providing a cultural centre and school for traditional dance music and drama, an education facility for children to learn about their cultural roots, and a Tallo Heritage Museum

Retaining housing as far as possible:

Developing an architectural code for the area to have stylistic consistency

Allowing limited retention of riverside stilt housing as part of the heritage

Providing a new gate to the graveyard as a symbol of respect for ancient kings who brought fame and religion to Makassar

Being more symbolic than physical, we propose that the development of Tallo Heritage City be based on study of the culture and oral history. For this we propose a Tallo Heritage Council made up of community leaders and historians.

This council would also be commissioned to prepare a detailed spatial plan (RDTR), taking the time to build consensus and historic authenticity.

We also propose that the community restores and modernizes its traditional local organization known as Gallarang, which would be similar to Banjar in Bali, as proposed in the institutional arrangements above.

Making the Heritage City a commercial success requires a number of strategies

High level of local ownership

Vastly improved access.

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As quickly as possible, the entrance road should be upgraded and an education facility built for school tours, to create a quick win for the community

In the longer run, the riverside road should link to the gateway to Tallo Heritage City, and lead to the proposed reclamation area for the port extension

Also in the longer run, the proposed monorail linking the proposed port area to Panakkukang via the line of the Merdeka Toll-road should be diverted to stop at the proposed cultural centre

Providing large property owners with high development rights in exchange for contributions to the plan. Four sites would be included in this:

The old timber factory, currently left vacant, and includes large green areas, can be developed into public space and parts of the proposed cultural centre, in exchange for the rights to build high-rise apartments facing the space. This would be a suitable location for the proposed monorail stop, and would include commercial activities on the lower levels. The property owners are enthusiastic to participate in such a venture

The warehousing complex to the south of the graveyard, and also includes both a large gardened area and fishponds behind a high wall, can be developed into the ceremonial open space with access to the river, and the parts of the cultural centre, in exchange for the rights to develop high rise apartments along the southern boundary. The location of the property owner is unknown.

Parts of the land owned by the Ministry of Transportation that are not now used for housing, and a small area used for housing, should be developed into the proposed Inauguration Site.

Similarly, an unused property south of this can also be developed.

Improving the capacity of the office of Kecamatan and Kelurahan Tallo to oversee the development of the Tallo Heritage City, possibly requiring a revision of boundaries, so that the Kecamatan takes in the whole of the historic area including the proposed park, and the kelurahan takes in the whole area north to the proposed gate.

Engaging Cipta Karya experts in revitalisation of heritage sites and buildings as partners in the planning process, as described in section 3 below on implementing arrangements

The accompanying map indicates the location of these properties, and the illustrations shows what the centre of the Tallo Heritage City may look like.

3. City Park

The city envisions the entire area within the riverside road to be developed as a city park. This covers approximately 9.3 km2. This area will be comprised of the following parts:

The river to be used for recreation and river transport, but also for more intensive fishing. Stabilisation ponds mentioned under component 1 will be needed to assure water quality to sustain a tourist industry.

Lakkang Island to be retained as a rural community and a tourist destination to display traditional village life

Areas of mangrove forest

Retaining nipah-nipah plantations along most of the river bank

Traditional stilt housing to be retained and improved on selected parts of the river bank

A large area for university farming, fisheries and forest research to the south of Lakkang Island

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A number of park areas providing a variety of recreation uses

It is proposed that the World Bank funds a number of these initiatives:

Mangrove planting at select locations on the north bank of the river and on Lakkang

A formal riverside park at Unhas

A park at Tello Baru close to the proposed ferry pier

A park on Pampang Kecil river at Panaikang, to the north of the Governors Office

Pedestrian and cycle tracks along entire riverside road levee, with a line of trees adjacent to the levee

Landscaping around the stabilisation ponds

These efforts will be complemented by programs of the tourism agency and sports agency to provide further developments. The implementation arrangements below propose arrangements for the overall management of the park. The following figure illustrates potential development at Kera-Kera adjacent to Unhas campus.

2.5.4. Component 4: Investment to Provide Improved Housing


The development area will provide future employment for over 200,000 low income people. It is most important that the land in the area is not commandeered by the real estate sector in such a way that they cannot live close to employment. The project envisions a set of new initiatives to assure improved housing choices for lower income housing, as described in the following table. The location of subcomponents is shown on the accompanying map.

Aerial view of Kera-Kera and Unhas campus

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Sub-component Location Function Responsible

agency Timing and

funding

Housing in Tallo Heritage City

Kelurahan Tallo

Preservation of cultural heritage, development of a cultural centre

City, Cipta Karya

On-going with potential of significant private investment

River-bank fishermen housing

Buloa, Tallo Traditional stilt housing over the water

City, Public Works

Some WB funding for sanitation, community investment

Guided densification North of Unhas, Tamalanrea Indah, Panaikang

Higher density development in existing low income areas without slumming

City, Cipta Karya, communities

To be determined

Informal housing within block development

Block developments on outer ring road

Higher density development of new low income areas without slumming

City, Cipta Karya and real estate

To be determined

Low cost apartments To be decided in detail planning

Housing choice with high density for low income families

City, Cipta Karya, Ministry of Housing

To be determined

Housing improvement initiatives (component 4)

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1. Tallo Heritage City housing

Following the concept for Tallo Heritage City presented above, the just-started slum improvement project should be expanded and adapted as necessary, to cover a complementary initiative from the directorate for building and neighbourhood planning to help the community prepare plans for building and neighbourhood (RTBL) and that link slum improvement with revitalisation of the area.

Current plans for slum improvement are likely to change little in the west side of Tallo, except perhaps around the two remains of fortresses. They are likely to produce significantly different plans in the area facing the river.

The planned apartment buildings for fishermen needs support of detailed planning to assure the community that they will continue to have access to the sea when the planned reclamation for the future port is implemented.

2. River-bank fishermen housing

It is proposed that improvement of river-bank fishermen housing at Buloa next to the toll road bridge, and potentially in locations along the river in Kelurahan Tallo, as part of the effort to preserve culture and heritage, and make the area more attract for tourism. At present the general quality of this housing is poor to very poor, but in Buloa and many parts of Tallo the main problem is sanitation which is relatively easily addressed.

The opportunity is to enable these communities to improve their welfare by making the housing more attractive and accessible, for fishermen to sell their catch and to provide simple restaurants to tourists on the river.

The problem of garbage collecting under this housing is not due to the practices of the residents. The garbage washes down the river, and gets deposited under the housing. The water stabilisation ponds recommended above will result in the area under the housing being clean.

Under current river regulation, such improvements are not permitted, though the housing may be retained. See the legal opinion under assessments for potential problems below.

If improvement of selected housing on the river is agreed by all parties, it may be good for tourism lead to limited and controlled further development of stilt-housing at select places along the river to help promote tourism.

3. Guided densification

Planned densification is proposed for housing areas close to the stage 1 riverside road behind the proposed high density development in three locations:

In Panaikang and Tello Baru north of Jl Urip Sumoharjo

In Tamalanrea Indah south of Unhas

North of the Unhas campus from Kera-Kera to Jl Perintis Kemerdekaan

It is proposed that the communities in these areas prepare building and neighbourhood plans (RTBL) with guidance from DJ Cipta Karya, and supported by technical assistance from the World Bank (see below). It is anticipated that the density of these areas could reach over 1000 ppHa in places. The RTBL process will assure the availability of community space and prevent both slumming and take-over by a richer community. An allowance is made for funding to support the resultant program that should be developed in parallel the Feasibility Study.

4. Informal housing within urban development blocks

Under implementing arrangements below we present a proposal for the private sector to plan and construct warehousing and light industry facilities with accompanying infrastructure. These large blocks should also contain areas which will provide low income workers with places to live close to work.

Based on the RTBL process, we propose that the real estate developers build narrow access roads with shop-houses along them, with 2m laneways leading to areas where

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the community will participate in the planning process as the area grows. Sites for primary school and mosque will act as anchors to attract people to join the new communities, as shown on the accompanying illustration. Community associations with government support can assist with providing credit.

5. Low cost apartments

It is anticipated that the ministry for housing and the city will provide apartment housing at strategic locations in the area. These should be planned close to transport nodes to encourage the use of public transport.

2.5.5. Component 5: Government and Community Capability Development Program


The scale of development proposed for Downstream Tallo River Area Development requires high managerial capability of government and a strong civil society, as described in detail in Section 3 on implementing arrangements. Developing this capability itself will require major development programs in government and the community.

Kota Makassar will be carrying out a number of government reforms over the period of this project that should have a positive impact on the outcomes. This include bureaucratic reform (as the capital city of the province), and budgeting-treasury reforms related to the SPAN program (Sistem perbendaharaan dan anggaran negara). This later program will be implemented by the newly-formed Financial management agency (Badan Pengelolaan Keuangan Daerah, commencing in October 2013).

Even though Makassar City has many programs working with the community, community leaders express the need for further development of civil society in Makassar, greater participation in civil affairs, and greater self-governance. This is particularly important for the following aspects of the Downstream Tallo River Area Development:

Participation in detailed spatial planning and RTBL

Creation of the culture and society of Tallo Heritage City

Livelihood programs related to the city park, including Lakkang conservation, riverside housing, tourism

Business support for partnerships in investment and development

The following table indicates the proposed subcomponents that are proposed to be supported by the World Bank project in support of this capability improvement:

2. Government capability program

Financial Management Capability Improvement

As good financial management and fiduciary care are essential for an effective loan program as well as for assuring accountability in private-public partnerships, it is proposed that loan funds or other World Bank resources are provided for a financial management technical assistance for helping the new financial management agency in Makassar build its capability. This TA would help Makassar City implement SPAN, a program for building up accounting, auditing, financial management and costing skills, and establish continual performance improvement across government through financial analysis of performance.

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Sub-component


agency Timing and funding

Government Capability program

Financial management reforms

Throughout the city

Introduce world class financial management

New financial management agency

Starting immediately, with TA support for four years in WB program

Urban Management reforms

Urban development management agency and related agencies

Hands-on performance oriented management of very large urban development program

City Secretary Starting ASAP with TA support for four years in WB program

Public Transport reforms

Provincial and city government

To develop an action plan to support a major change from private to public transport

City Bappeda and Mamminasata

Starting ASAP with short TA focussing on river transport

Policy formulation reforms

Throughout government

To improve the effectiveness of policy formulation, focussing on the regulation needed for project success

City Secretary Starting ASAP with medium term TA

Community Capability Program

Lakkang Island and river community development program

Lakkang Island , fishermen communities, and tourist activity communities

To assure both the wellbeing of river communities and their role in park functions

City government with the communities

Starting ASAP with support from many agencies including DJ Cipta Karya, with 4 year TA support

Housing densification program

Informal residential areas in Panaikang-Tello Baru, Tamalanrea Indah and north of Unhas

To guide communities to create clean and healthy residential environment

City government with the communities

Starting project with support from many agencies including DJ Cipta Karya, with 4 year TA support

Urban development management reforms

In the Section 3 on implementation arrangements, this assessment proposes a number of initiatives to change the way in which urban development is managed:

changes to functions of subdistrict agencies (kecamatan and kelurahan) in the development area to assist in planning and development control,

the creation of a Downstream Tallo River Development Agency following national guidelines on urban development, designed to engage in large scale private-public partnerships for development and

the creation of a new joint venture institution for land acquisition along the proposed riverside road.

An urban development management reform program is proposed for the institutional development and the capacity building to make these new arrangements work. It is proposed that loan funds or other World Bank resources be provided for an urban development management technical assistance that would work with the city, supported by DJ Cipta Karya and Ministry of Home Affairs to help the above-mentioned agencies establish their capabilities.

This would include efforts to guide and control land values and the real estate industry, and to attract private investment to work in the best interests of the city, with particular

Final Report


concern for achieving higher densities, assuring low-income housing, and preventing slumming.

This aspect of the assistance would start with an initiative to assure complete and publicly-available information on property registration, and support to households to obtain tenure.

Another aspect of the assistance would be help in developing policies and capability for proper sanitation, solid waste management and pollution control throughout the development area.

It would also include capability development in contract and license preparation and project management for managing real estate developer who will be responsible for subdivision of land for industry, warehousing and residential areas.

Public transportation reforms

A key aspect of the national urban development strategy is to develop public transport, and the incentives to use it and disincentives to using private transport. For this Mamminasata and the city should develop a reform program in public transport policy and provision. A public transportation technical assistance is proposed to help the city develop one of the key elements of its new transportation polices, its river transport program, and to develop plans for road public transport in the development area.

Policy drafting reforms

The quality of a policy is measured by the extent to which government implements it and the public respect it. Policies related to land use and urban systems are assessed to be lacking by the extent to which private development continues in contradiction to policy, and the lack of civil order in public spaces.

A legal drafting technical assistance is proposed to help the city develop its regulatory basis for the program, including:

New river alignment regulation

Revision of kecamatan/kelurahan functions, boundaries and names

Preparation of detailed spatial plans for the park and for the areas around it. Detailed spatial plans for some parts of the area should be prepared in conjunction with efforts of the community capability program below.

An important aspect of this technical assistance is advice on assuring that policy is effectively accepted by the apparatus and the public, and implemented.

3. Community capability program

A program is proposed to develop the capability of community in self-governance. This is largely composed of two initiatives. It is proposed that both receive relatively small, focussed and long-term technical assistance.

Lakkang and River Park Community development program

Lakkang Island and park community development is a program to help the community on Lakkang Island, fishing communities along the river, and a new community that will grow providing other services within the new park area. The program will empower them particularly to benefit from the growing tourist activity in and around the park, to improve their housing in an agreed form that promotes tourism and local culture, and to establish codes of conduct and self-governance. This program would be supported by over a period of four years. Part of the assignment of the technical assistance would be to facilitate community participation in the development of a detailed spatial plan for Lakkang and the park area.

Housing densification program

This program provides support to communities in informal housing areas to improve their urban environment as the area becomes denser. The communities will be assisted in preparing inputs to detailed spatial plans (RDTR) and preparing building and

Final Report


neighbourhood plans (RTBL) with su

Makassar Tallo River Area Development Pre-Feasibility Final Report A4

Documents

Transcript of Makassar Tallo River Area Development Pre-Feasibility Final Report A4